PRIOR PRINTER'S NO. 1796 PRINTER'S NO. 2023
No. 1297 Session of 2008
INTRODUCED BY BROWNE, WOZNIAK, RAFFERTY, M. WHITE, FONTANA, WAUGH, TOMLINSON, C. WILLIAMS, FUMO, EARLL, BAKER, WONDERLING, MUSTO, COSTA, PIPPY, RHOADES, ARMSTRONG AND WASHINGTON, FEBRUARY 26, 2008
SENATOR ARMSTRONG, APPROPRIATIONS, RE-REPORTED AS AMENDED, MAY 7, 2008
AN ACT 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 the expiration of 31 provisions relating to prudent investments; PROVIDING FOR <--
1 AUDIT OF SECURITIES DEPOSITED WITH STATE TREASURER; AND 2 MAKING A RELATED REPEAL. 3 The General Assembly of the Commonwealth of Pennsylvania 4 hereby enacts as follows: 5 Section 1. Section 301.1(i) of the act of April 9, 1929 6 (P.L.343, No.176), known as The Fiscal Code, amended November 9, 7 2006 (P.L.1335, No.138), is amended to read: 8 Section 301.1. Investment of Moneys.--* * * 9 (i) (1) Notwithstanding subsections (a) through (h), the 10 Treasury Department shall have the exclusive management and full 11 power to invest and reinvest the moneys of any fund as shall be 12 accumulated beyond the ordinary needs of the various funds and 13 which are not authorized by law to be invested by any board, 14 commission or State officer, subject, however, to the exercise 15 of that degree of judgment and care under the circumstances then 16 prevailing which persons of prudence, discretion and 17 intelligence who are familiar with such matters exercise in the 18 management of their own affairs not in regard to speculation but 19 in regard to the permanent disposition of the funds, considering 20 the probable income to be derived therefrom as well as the 21 probable safety of their capital. The Treasury Department shall 22 have the power to hold, purchase, sell, assign, transfer and 23 dispose of any securities, including equity securities and 24 mutual funds consisting in whole or in part of equity 25 securities, and investments in any such fund as well as the 26 proceeds of such investments and of the money belonging to any 27 such fund. The Treasury Department shall, through the Governor, 28 submit to the General Assembly annually, at the same time the 29 Treasury Department submits its budget covering administrative 30 expenses, a report identifying the nature and amount of all 20080S1297B2023 - 2 -
1 existing investments made pursuant to this section. 2 (2) The authority to invest or reinvest the moneys of any 3 fund pursuant to this subsection shall expire [December 31, 4 2008] December 31, 2010. The Treasury Department may maintain 5 investments pursuant to this subsection which are in existence 6 on the expiration date in this paragraph for not more than two 7 years following such expiration date. 8 SECTION 2. THE ACT IS AMENDED BY ADDING A SECTION TO READ: <-- 9 SECTION 409. AUDIT OF SECURITIES DEPOSITED WITH STATE 10 TREASURER.--(A) THE AUDITOR GENERAL, THROUGH SUCH AGENTS AS HE 11 MAY SELECT, SHALL PERFORM AN ANNUAL AUDIT OF THE BONDS, STOCKS, 12 MORTGAGES, OR OTHER SECURITIES, WHICH ARE DEPOSITED WITH THE 13 STATE TREASURER IN WHATEVER CAPACITY, AND SHALL AUDIT THE BOOKS 14 IN WHICH A RECORD IS KEPT OF SUCH BONDS, STOCKS, MORTGAGES, OR 15 OTHER SECURITIES; AND, FOR THIS PURPOSE, THE AUDITOR GENERAL MAY 16 EMPLOY SUCH CONSULTANTS, EXPERTS, ACCOUNTANTS, OR INVESTIGATORS 17 AS HE MAY DEEM ADVISABLE. THE AUDIT MAY BE CONDUCTED 18 INDEPENDENTLY OR AS PART OF ANY OTHER ANNUAL AUDIT OR AUDITS 19 CONDUCTED BY THE AUDITOR GENERAL. 20 (B) THE STATE TREASURER SHALL, WHENEVER DEMAND IS MADE UPON 21 HIM BY THE AUDITOR GENERAL, SUBMIT FOR THE AUDIT OF THE AUDITOR 22 GENERAL, OR HIS AGENTS, ALL RECORDS IN HIS POSSESSION RELATING 23 TO SUCH BONDS, STOCKS, MORTGAGES, OR OTHER SECURITIES, INCLUDING 24 SUCH RECORDS IN THE POSSESSION OF ANY CUSTODIAN OR SUBCUSTODIAN 25 ENGAGED BY HIM REGARDING SUCH SECURITIES, AND HIS FAILURE SO TO 26 DO SHALL DISQUALIFY HIM FROM HOLDING THE OFFICE OF STATE 27 TREASURER. 28 SECTION 3. REPEALS ARE AS FOLLOWS: 29 (1) THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER 30 PARAGRAPH (2) IS NECESSARY TO EFFECTUATE THE ADDITION OF 20080S1297B2023 - 3 -
1 SECTION 409 OF THE ACT.
2 (2) THE ACT OF MAY 21, 1923 (P.L.288, NO.184), ENTITLED
3 "AN ACT TO BETTER SECURE ALL BONDS, STOCKS, MORTGAGES, OR
4 OTHER SECURITIES DEPOSITED WITH THE STATE TREASURER, BY
5 PROVIDING FOR THEIR INSPECTION, EXAMINATION, AND
6 VERIFICATION, AND THE VERIFICATION OF THE BOOKS, CONTAINING A
7 RECORD OF SUCH BONDS, STOCKS, MORTGAGES, OR OTHER SECURITIES,
8 BY THE AUDITOR GENERAL OR HIS AGENTS," IS REPEALED.
9 Section 2 4. This act shall take effect immediately. <--
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