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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY WHITE, BELFANTI, BROWN, CALTAGIRONE, HORNAMAN, JOSEPHS, W. KELLER, ROCK, SIPTROTH, SWANGER, THOMAS AND KORTZ, APRIL 19, 2010 |
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| REFERRED TO COMMITTEE ON COMMERCE, APRIL 19, 2010 |
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| AN ACT |
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1 | Amending the act of April 9, 1929 (P.L.343, No.176), entitled, |
2 | as amended, "An act relating to the finances of the State |
3 | government; providing for the settlement, assessment, |
4 | collection, and lien of taxes, bonus, and all other accounts |
5 | due the Commonwealth, the collection and recovery of fees and |
6 | other money or property due or belonging to the Commonwealth, |
7 | or any agency thereof, including escheated property and the |
8 | proceeds of its sale, the custody and disbursement or other |
9 | disposition of funds and securities belonging to or in the |
10 | possession of the Commonwealth, and the settlement of claims |
11 | against the Commonwealth, the resettlement of accounts and |
12 | appeals to the courts, refunds of moneys erroneously paid to |
13 | the Commonwealth, auditing the accounts of the Commonwealth |
14 | and all agencies thereof, of all public officers collecting |
15 | moneys payable to the Commonwealth, or any agency thereof, |
16 | and all receipts of appropriations from the Commonwealth, |
17 | authorizing the Commonwealth to issue tax anticipation notes |
18 | to defray current expenses, implementing the provisions of |
19 | section 7(a) of Article VIII of the Constitution of |
20 | Pennsylvania authorizing and restricting the incurring of |
21 | certain debt and imposing penalties; affecting every |
22 | department, board, commission, and officer of the State |
23 | government, every political subdivision of the State, and |
24 | certain officers of such subdivisions, every person, |
25 | association, and corporation required to pay, assess, or |
26 | collect taxes, or to make returns or reports under the laws |
27 | imposing taxes for State purposes, or to pay license fees or |
28 | other moneys to the Commonwealth, or any agency thereof, |
29 | every State depository and every debtor or creditor of the |
30 | Commonwealth," further providing for State depositories. |
31 | The General Assembly of the Commonwealth of Pennsylvania |
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1 | hereby enacts as follows: |
2 | Section 1. Section 505(b) of the act of April 9, 1929 |
3 | (P.L.343, No.176), known as The Fiscal Code, amended June 28, |
4 | 1951 (P.L.601, No.152), is amended and the section is amended by |
5 | adding subsections to read: |
6 | Section 505. State Depositories.--The Board of Finance and |
7 | Revenue shall have the power, and its duty shall be, |
8 | * * * |
9 | (b) To [select,] give preference to community banks as |
10 | depositories for State funds[, private banking institutions |
11 | located and doing business in this Commonwealth, if such private |
12 | banking institutions] if the community bank shall file a |
13 | statement, in writing, with the board and the Department of |
14 | Banking, agreeing that they will subject themselves to the same |
15 | supervision in all respects, including an examination by the |
16 | bank examiners of the Department of Banking at any time as |
17 | banks, banking institutions, or trust companies, which are |
18 | depositories of State funds, and, if and after, compliance with |
19 | the conditions required of any other depository. When bids are |
20 | received by a community bank and a nonresident bank, the |
21 | contract shall be awarded to the community bank whose bid is |
22 | nearest to the bid price of the otherwise low nonresident bank |
23 | bidder if the bid price of the community bank is lower than the |
24 | bid price of a nonresident bank when multiplied by a factor |
25 | of .9. |
26 | * * * |
27 | (h) The State Treasurer, with the Board of Finance and |
28 | Revenue, shall develop a program to increase State investment in |
29 | certificates of deposit at community banks. |
30 | 1. The State Treasurer shall promulgate regulations to |
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1 | determine that portion of the General Fund that is not needed to |
2 | meet short-term liquidity needs and, subsequently, create an |
3 | investment program for the remainder aimed at increasing |
4 | community bank lending to Pennsylvania businesses. |
5 | 2. The regulations promulgated under subsection (b) shall |
6 | balance the investment priorities, such as the preservation of |
7 | the principal balance, the maintenance of liquidity and maximum |
8 | return with the need for a program where the Commonwealth |
9 | invests in certificates of deposit with maturity terms of at |
10 | least one year, thereby providing community banks with |
11 | additional reserves to lend to businesses in this Commonwealth. |
12 | (i) Definitions.--As used in this section, the following |
13 | words and phrases shall have the meanings given to them in this |
14 | subsection unless the context clearly indicates otherwise: |
15 | "Community bank" shall mean a federally insured depository |
16 | institution organized under the laws of this Commonwealth, or a |
17 | credit union that is insured by the National Credit Union |
18 | Administration and is organized under the laws of this |
19 | Commonwealth. |
20 | "Nonresident bank" shall mean a federally insured depository |
21 | institution organized under the laws of a state other than this |
22 | Commonwealth. |
23 | Section 2. This act shall take effect in 60 days. |
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