PRINTER'S NO. 145
No. 134 Session of 1989
INTRODUCED BY RICHARDSON, MANDERINO, LINTON, KUKOVICH, EVANS,
FEE, ACOSTA, CARN, HARPER, HUGHES, OLIVER, PRESTON, ROBINSON,
BISHOP, WILLIAMS, THOMAS, McHALE, JAMES, ROEBUCK, PISTELLA,
TIGUE, BLAUM, CAWLEY, JOSEPHS, RITTER, TRICH, LEVDANSKY,
COLAIZZO, FREEMAN, PRESSMANN AND COWELL, JANUARY 25, 1989
REFERRED TO COMMITTEE ON FINANCE, JANUARY 25, 1989
AN ACT
1 Amending the act of February 17, 1906 (P.L.45, No.11), entitled
2 "An act to regulate the deposits of State funds, to prescribe
3 the method of selecting State depositories, to limit the
4 amount of State deposits, to provide for the security of such
5 deposits, to fix the rate of interest thereon, to provide for
6 the publication of monthly statements of moneys in the
7 general and sinking funds, to declare it a misdemeanor to
8 give or take anything of value for obtaining the same, and
9 prescribing penalties for violations of this act,"
10 prohibiting State depositories from maintaining financial
11 transactions with the Republic of South Africa and Namibia.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The act of February 17, 1906 (P.L.45, No.11),
15 entitled "An act to regulate the deposits of State funds, to
16 prescribe the method of selecting State depositories, to limit
17 the amount of State deposits, to provide for the security of
18 such deposits, to fix the rate of interest thereon, to provide
19 for the publication of monthly statements of moneys in the
20 general and sinking funds, to declare it a misdemeanor to give
21 or take anything of value for obtaining the same, and
1 prescribing penalties for violations of this act," is amended by
2 adding a section to read:
3 Section 3.1. (a) To be a depository of State funds, a
4 financial institution shall not encourage or condone legally
5 required discrimination against an individual on the basis of
6 race or color or supported human rights violations against an
7 individual by knowingly making or maintaining a loan to the
8 Republic of South Africa and Namibia, a national corporation of
9 the Republic of South Africa and Namibia, or to a subsidiary or
10 affiliate of a United States firm operating in the Republic of
11 South Africa and Namibia. A financial institution shall be
12 considered to have complied with this subsection if the
13 financial institution has filed with the State Treasurer an
14 affidavit attesting to the fact that it has, no later than six
15 months from the effective date of this section, no existing
16 loans to the Republic of South Africa and Namibia, a national
17 corporation of the Republic of South Africa and Namibia, or to a
18 subsidiary or affiliate of a United States firm operating in the
19 Republic of South Africa and Namibia, as determined from
20 information obtained from the United States Department of
21 Commerce.
22 (b) As used in this section:
23 "Financial institution" means a bank chartered under the laws
24 of this State or of the United States.
25 "National corporation" means a corporation, or a subsidiary
26 of affiliate of a corporation, that is more than fifty per
27 centum owned or operated by the government of the Republic of
28 South Africa and Namibia.
29 "Subsidiary or affiliate of a United States firm operating in
30 the Republic of South Africa and Namibia" means, as determined
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1 by the United States Department of Commerce, a firm incorporated
2 under the laws of the Republic of South Africa and Namibia,
3 domiciled in the Republic of South Africa and Namibia, and
4 controlled by a United States firm. A subsidiary or affiliate
5 shall not be construed to mean a subsidiary or affiliate that is
6 located in the United States.
7 Section 2. This act shall take effect immediately.
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