Trial Engrossment of Amendment A00860 to House Bill 0859 P.N. 1309, Regular Session 2021-2022

A00860

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

859

Session of

2021

INTRODUCED BY DELOZIER, SCHLEGEL CULVER, DUNBAR, GALLOWAY,

GLEIM, HERSHEY, JOZWIAK, LONGIETTI, RYAN, SAYLOR, STAMBAUGH,

ZIMMERMAN, DRISCOLL, SHUSTERMAN AND DIAMOND, MARCH 10, 2021

AS REPORTED FROM COMMITTEE ON COMMERCE, HOUSE OF

REPRESENTATIVES, AS AMENDED, APRIL 20, 2021

AN ACT

Amending the act of May 15, 1933 (P.L.565, No.111), entitled "An

act relating to the powers and duties of the Department of

Banking and Securities and the Secretary of Banking and

Securities in exercising supervision over, and taking

possession of and conducting or liquidating the business and

property of, corporations, associations, and persons

receiving deposits or otherwise transacting a banking

business, corporations acting as fiduciaries, and building

and loan associations; providing for the payment of the

expenses of the Department of Banking by supervised

corporations, associations, or persons, and appropriating the

Banking Department Fund; authorizing the Department of

Banking, under certain circumstances, to examine

corporations, associations, or persons affiliated, or having

business transactions with supervised corporations,

associations or persons; authorizing appeals to the Supreme

Court, and prescribing and limiting the powers and duties of

certain other courts and their prothonotaries, registers of

wills, recorders of deeds, and certain State departments,

commissions, and officers; authorizing certain local public

officers and State departments to collect fees for services

rendered under this act; regulating securities; providing

penalties; and repealing certain acts and parts of acts," in

banking and securities, further providing for fund.

Amending the act of April 9, 1929 (P.L.343, No.176), entitled

"An act relating to the finances of the State government;

providing for cancer control, prevention and research, for

ambulatory surgical center data collection, for the Joint

Underwriting Association, for entertainment business

financial management firms, for private dam financial

assurance and for reinstatement of item vetoes; providing for

the settlement, assessment, collection, and lien of taxes,

bonus, and all other accounts due the Commonwealth, the

collection and recovery of fees and other money or property

due or belonging to the Commonwealth, or any agency thereof,

including escheated property and the proceeds of its sale,

the custody and disbursement or other disposition of funds

and securities belonging to or in the possession of the

Commonwealth, and the settlement of claims against the

Commonwealth, the resettlement of accounts and appeals to the

courts, refunds of moneys erroneously paid to the

Commonwealth, auditing the accounts of the Commonwealth and

all agencies thereof, of all public officers collecting

moneys payable to the Commonwealth, or any agency thereof,

and all receipts of appropriations from the Commonwealth,

authorizing the Commonwealth to issue tax anticipation notes

to defray current expenses, implementing the provisions of

section 7(a) of Article VIII of the Constitution of

Pennsylvania authorizing and restricting the incurring of

certain debt and imposing penalties; affecting every

department, board, commission, and officer of the State

government, every political subdivision of the State, and

certain officers of such subdivisions, every person,

association, and corporation required to pay, assess, or

collect taxes, or to make returns or reports under the laws

imposing taxes for State purposes, or to pay license fees or

other moneys to the Commonwealth, or any agency thereof,

every State depository and every debtor or creditor of the

Commonwealth," in additional special funds and restricted

accounts, adding provisions relating to miscellaneous trust

funds and accounts by converting the Banking Fund to the

Banking Trust Fund, the Institution Resolution Account to the

Institution Resolution Trust Restricted Account, the Keystone

Recreation, Park and Conservation Fund to the Keystone

Recreation, Park and Conservation Trust Fund and the Fire and

Emergency Medical Services Loan Fund to the Fire and

Emergency Medical Services Loan Trust Fund; and making

related repeals.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 1113-A of the act of May 15, 1933

(P.L.565, No.111), known as the Department of Banking and

Securities Code, is amended to read:

Section 1113-A. [Fund] Banking trust fund ; money received from

licensees.

(a) [Continuation] Banking Trust Fund.--The Banking

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Department Fund [is] redesignated as the Banking Fund[.] is

converted into a trust fund to be administered for the benefit

of institutions, credit unions, licensees and their customers,

except for persons subject to regulation under the act of

December 5, 1972 (P.L.1280, No.284), known as the Pennsylvania

Securities Act of 1972. The fund shall be administered by the

department. All interest earned from the investment or deposit

of money accumulated in the fund shall be deposited in the fund

for the same use. All money deposited into the fund shall be

held in trust and shall not be considered general revenue of the

Commonwealth and shall be used only to effectuate the purposes

of this section as determined by the department and shall be

subject to audit by the Auditor General.

(b) Sources of the Banking Trust Fund.--The sources of the

fund are as follows:

(1) Money collected or received by the department

arising from:

(i) fees, assessments, charges and penalties

relating to the regulation of [associations,] credit

unions, institutions and licensees;

(ii) the sale by the Department of General Services

of unserviceable property originally paid for out of the

fund; and

(iii) similar sources.

(2) The sources of the fund shall not include fees,

assessments, charges and penalties generated from:

(i) the [act of December 5, 1972 (P.L.1280, No.284),

known as the] Pennsylvania Securities Act of 1972; or

(ii) the act of March 3, 1976 (P.L.42, No.19), known

as the Takeover Disclosure Law.

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by the department to pay its expenses relating to the

examination and regulation of institutions, credit unions and

licensees, except for persons subject to regulation under the

Pennsylvania Securities Act of 1972, including the following:

(1) Salaries of the secretary, the deputies, the

examiners, the other employees of the department and

attorneys.

(2) Rental and other expenses for offices, rooms, garage

space and other accommodations, regardless of the

municipality in which they are located, occupied by the

department. This paragraph excludes offices, rooms, garage

space and accommodations in the Capitol Complex.

(3) Premiums for workers' compensation insurance

covering the officers and employees of the department.

(4) Premiums for surety bonds for officers and employees

of the department required by law to furnish the bonds.

(5) Furniture, stationery, materials, supplies and

overhead expenses of the department.

(c.1) Operating reserves of the Banking Trust Fund.--The

fund shall maintain an adequate operating reserve as determined

by the secretary to be necessary to ensure the ability of the

department to continue to pay its expenses described in

subsection (c) in the event of adverse economic conditions, the

loss of revenue as a result of institutions , CREDIT UNIONS or

licensees becoming subject to the jurisdiction of another

primary regulator or emergencies. In determining the amount of

the reserve to be held by the fund, the secretary shall take

into consideration the accreditation requirements of the

Conference of State Bank Supervisors, the National Association

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of State Credit Union Supervisors and the American Association

of Residential Mortgage Regulators.

(d) Department of General Services.--Purchases and leases

under subsection (c) shall be made through the Department of

General Services, as agent. Contracts of insurance and surety

bonds under subsection (c) shall be placed through the

Department of General Services, as agent.

(e) Restrictions on appropriations.--

(1) For fiscal years beginning after June 30, 1995, and

ending before July 1, 2012, the General Assembly shall

appropriate funds as it determines to be necessary from the

fund for use by the department or other Commonwealth

agencies.

(2) For fiscal years beginning after June 30, 2012, the

General Assembly shall appropriate the funds as it determines

to be necessary from the [fund] Banking Trust Fund for use

only by the department and not for any other Commonwealth

agency.

(f) Warrant.--Money in the [fund] Banking Trust Fund

appropriated to the department shall be paid out upon warrant of

the State Treasurer drawn after requested by the secretary.

(g) Institution Resolution Account.--

(1) The Institution Resolution Account is established as

a restricted account within the [fund] Banking Trust Fund.

(2) The sources of the account are as follows:

(i) An amount determined by the secretary each

fiscal year based upon economic and regulatory conditions

from assessments, fees and administrative penalties

generated from statutes administered by the department

other than:

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(A) the Pennsylvania Securities Act of 1972; or

(B) the Takeover Disclosure Law.

(ii) Amounts received from court litigation

involving the department.

(3) The secretary may use the money in the account to

pay for costs associated with any of the following:

(i) Resolution of an institution [or an

association,] under Article X. Money under this

subparagraph may be used in lieu of paying expenses from

the assets of an institution [or association] under

section 1006.

(ii) Seizure and liquidation of a credit union under

17 Pa.C.S. § 503 (relating to regulation by department).

(4) In determining the amount to pay into the

Institution Resolution Account each year pursuant to

paragraph (1), the secretary shall do so in a manner that

builds up a reserve sufficient to pay costs as described in

paragraph (3) in a manner that will allow the department to

discharge its obligations to resolve, seize or liquidate an

institution OR CREDIT UNION without impairing the ability of

the department to continue to perform its other duties.

Section 1. Article XVII-A.1 of the act of April 9, 1929

(P.L.343, No.176), known as The Fiscal Code, is amended by

adding a subarticle to read:

SUBARTICLE J

MISCELLANEOUS TRUST FUNDS AND ACCOUNTS

Section 1791-A.1. Banking Trust Fund.

(a) Conversion of Banking Fund.--The Banking Fund is

converted into a trust fund in the State Treasury to be known as

the Banking Trust Fund and administered for the benefit of

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institutions, credit unions, licensees and their customers,

except for persons subject to regulation under the act of

December 5, 1972 (P.L.1280, No.284), known as the Pennsylvania

Securities Act of 1972. The fund shall be administered by the

department. All interest earned from the investment or deposit

of money accumulated in the fund shall be deposited into the

fund for the same use. All money deposited into the fund shall:

(1) be held in trust;

(2) not be considered general revenue of the

Commonwealth;

(3) be used only to effectuate the purposes of this

section as determined by the department; and

(4) be subject to audit by the Auditor General.

(b) Sources.--The sources of the fund are as follows:

(1) Money collected or received by the department

arising from:

(i) fees, assessments, charges and penalties

relating to the regulation of credit unions, institutions

and licensees;

(ii) the sale by the Department of General Services

of unserviceable property originally paid for out of the

fund; and

(iii) similar sources.

(2) The sources of the fund shall not include fees,

assessments, charges and penalties generated from:

(i) the Pennsylvania Securities Act of 1972;

(ii) the act of March 3, 1976 (P.L.42, No.19), known

as the Takeover Disclosure Law; or

(iii) portions of the money under paragraph (1)

determined by the secretary to be paid into the

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Institution Resolution Trust Fund under section 1792-A.1.

to pay its expenses relating to the examination and regulation

of institutions, credit unions and licensees, except for persons

subject to regulation under the Pennsylvania Securities Act of

1972, including the following:

(1) Salaries of the secretary, the deputies, the

examiners, the other employees of the department and

attorneys.

(2) Rental and other expenses for offices, rooms, garage

space and other accommodations, regardless of the

municipality in which they are located, occupied by the

department. This paragraph excludes offices, rooms, garage

space and accommodations in the Capitol Complex.

(3) Premiums for workers' compensation insurance

covering the officers and employees of the department.

(4) Premiums for surety bonds for officers and employees

of the department required by law to furnish the bonds.

(5) Furniture, stationery, materials, supplies and

overhead expenses of the department.

(d) Operating reserves.--The fund shall maintain an adequate

operating reserve as determined by the secretary to be necessary

to ensure the ability of the department to continue to pay its

expenses described in subsection (c) in the event of adverse

economic conditions, the loss of revenue as a result of

institutions or licensees becoming subject to the jurisdiction

of another primary regulator or emergencies. In determining the

amount of the reserve to be held by the fund, the secretary

shall take into consideration the accreditation requirements of

the Conference of State Bank Supervisors, the National

A00860 - 8 -

Association of State Credit Union Supervisors and the American

Association of Residential Mortgage Regulators.

(e) Department of General Services.--Purchases and leases

under subsection (c) shall be made through the Department of

General Services, as agent. Contracts of insurance and surety

bonds under subsection (c) shall be placed through the

Department of General Services, as agent.

(f) Restrictions on appropriations.--For fiscal years

beginning after June 30, 2012, the General Assembly shall

appropriate the funds as it determines to be necessary from the

fund for use only by the department and not for any other

Commonwealth agency.

(g) Warrant.--Money in the fund appropriated to the

department shall be paid out upon warrant of the State Treasurer

drawn after requested by the secretary.

(h) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Department." The Department of Banking and Securities of

the Commonwealth.

"Fund." The Banking Trust Fund described in subsection (a).

"Secretary. The Secretary of Banking and Securities of the

Commonwealth.

Section 1792-A.1. Institution Resolution Trust Fund.

(a) Conversion of Institution Resolution Account.--The

Institution Resolution Account in the Banking Fund is converted

into a restricted account in the Banking Trust Fund to be known

as the Institution Resolution Trust Restricted Account and

administered for the benefit of banks, bank and trust companies,

trust companies, savings banks, credit unions and their

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customers. The restricted account shall be administered by the

department. All interest earned from the investment or deposit

of money accumulated in the restricted account shall be

deposited into the restricted account for the same use. All

money deposited into the restricted account shall:

(1) be held in trust;

(2) not be considered general revenue of the

Commonwealth;

(3) be used only to effectuate the purposes of this

subsection as determined by the department; and

(4) be subject to audit by the Auditor General.

(b) Sources.--The sources of the restricted account are as

follows:

(1) An amount determined by the secretary each fiscal

year based upon economic and regulatory conditions from

assessments, fees and administrative penalties generated from

statutes administered by the department other than:

(i) the act of December 5, 1972 (P.L.1280, No.284),

known as the Pennsylvania Securities Act of 1972; or

(ii) the act of March 3, 1976 (P.L.42, No.19), known

as the Takeover Disclosure Law.

(2) Amounts received from court litigation involving the

department.

account to pay for costs associated with any of the following:

(1) Resolution of an institution or an association,

under Article X of the act of May 15, 1933 (P.L.565, No.111),

known as the Department of Banking and Securities Code. Money

under this paragraph may be used in lieu of paying expenses

from the assets of an institution or association under

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section 1006 of the Department of Banking and Securities

Code.

(2) Seizure and liquidation of a credit union under 17

Pa.C.S. § 503 (relating to regulation by department).

(d) Reserve.--In determining the amount to pay into the

restricted account each year, the secretary shall do so in a

manner that builds up a reserve sufficient to pay costs as

described in subsection (c) in a manner that will allow the

department to discharge its obligations to resolve, seize or

liquidate an institution or credit union without impairing the

ability of the department to continue to perform its other

duties.

(e) Restrictions on appropriations.--For fiscal years

beginning after June 30, 2012, the General Assembly shall

appropriate the funds as it determines to be necessary from the

the restricted account for use only by the department and not

for any other Commonwealth agency.

(f) Warrant.--Money in the restricted account appropriated

to the department shall be paid out upon warrant of the State

Treasurer drawn after requested by the secretary.

(g) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Department." The Department of Banking and Securities of

the Commonwealth.

"Restricted account." The Institution Resolution Trust

Restricted Account described in subsection (a).

"Secretary." The Secretary of Banking and Securities of the

Commonwealth.

Section 1793-A.1. Keystone Recreation, Park and Conservation

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Trust Fund.

(a) Conversion of Keystone Recreation, Park and Conservation

Fund.--The Keystone Recreation, Park and Conservation Fund

established in section 4 of the act of July 2, 1993 (P.L.359,

No.50), known as the Keystone Recreation, Park and Conservation

Fund Act, is converted to a trust fund in the State Treasury to

be known as the Keystone Recreation, Park and Conservation Trust

Fund to provide money necessary to implement the provisions of

that act. All interest earned from the investment or deposit of

money accumulated in the fund shall be deposited into the fund

for the same use. All money deposited into the fund shall:

(1) be held in trust;

(2) not be considered general revenue of the

Commonwealth;

(3) be used only to effectuate the purposes of this

section as determined by the agency; and

(4) be subject to audit by the Auditor General.

(b) Source of funds.--All proceeds from the sale of bonds or

notes as approved under section 5 of the Keystone Recreation,

Park and Conservation Fund Act and the monthly transfer of a

portion of the State Realty Transfer Tax shall provide the

necessary money for the fund.

appropriated on a continuing nonlapsing basis to the designated

agencies in the amounts specified in section 12 of the Keystone

Recreation, Park and Conservation Fund Act. No money shall be

expended by any agency without authorization by the Governor.

(d) Interest.--All interest earned by the fund and all

refunds or repayments shall be credited to the fund and are

hereby appropriated to the appropriate agencies in the same

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percentage as specified in section 12 of the Keystone

Recreation, Park and Conservation Fund Act.

(e) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Agency." As defined in the Keystone Recreation, Park and

Conservation Fund Act.

"Fund." The Keystone Recreation, Park and Conservation Trust

Fund described in subsection (a).

Section 1794-A.1. Fire and Emergency Medical Services Loan

Trust Fund.

(a) Conversion of Fire and Emergency Medical Services Loan

Trust Fund.--

(1) The Fire and Emergency Medical Services Loan Fund

established in former 35 Pa.C.S. § 7365 is converted to a

trust fund in the State Treasury to be known as the Fire and

Emergency Medical Services Loan Trust Fund.

(2) The fund shall be credited with all appropriations

made by the General Assembly other than appropriations for

expenses of administering 35 Pa.C.S. Ch. 73 Subch. E

(relating to Fire and Emergency Medical Services Loan

Program) or grants from other sources to the office as well

as repayment of principal and interest on loans made under 35

Pa.C.S. Ch. 73 Subch. E.

(b) Requisition.--Upon approval of the loan, the

commissioner shall routinely requisition from the fund such

amounts as shall be allocated by the office for loans to fire

companies or EMS companies. When and as the amounts so allocated

as loans to fire companies or EMS companies are repaid according

to the terms of the agreements made and entered into with the

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office, the office shall pay the amounts into the fund, it being

the intent of 35 Pa.C.S. Ch. 73 Subch. E that the fund shall

operate as a revolving fund in which all appropriations and

payments made to the fund may be applied and reapplied to the

purposes of 35 Pa.C.S. Ch. 73 Subch. E.

the interest payments, but not in excess of $600,000, for

administrative costs on an annual basis.

(d) Definitions.--

(1) Except as otherwise provided in paragraph (2), the

words and phrases as used in this section shall have the

meanings given to them in 35 Pa.C.S. § 7363 (relating to

definitions).

(2) As used in this section, "fund" means the Fire and

Emergency Medical Services Loan Trust Fund described in

subsection (a).

Section 2. The addition of section 1793-A.1 of the act is a

continuation of section 4 of the act of July 2, 1993 (P.L.359,

No.50), known as the Keystone Recreation, Park and Conservation

Fund Act, and the following shall apply:

(1) Except as otherwise provided in section 1793-A.1 of

the act, all activities initiated under section 4 of the

Keystone Recreation, Park and Conservation Fund Act, shall

continue and remain in full force and effect and may be

completed under section 1793-A.1 of the act. Resolutions,

orders, regulations, rules and decisions which were made

under section 4 of the Keystone Recreation, Park and

Conservation Fund Act and which are in effect on the

effective date of this section shall remain in full force and

effect until revoked, vacated or modified under section 1793-

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A.1 of the act. Contracts, obligations and agreements entered

into under section 4 of the Keystone Recreation, Park and

Conservation Fund Act are not affected nor impaired by the

repeal of section 4 of the Keystone Recreation, Park and

Conservation Fund Act.

(2) Except as specified in paragraph (3), any difference

in language between section 1793-A.1 of the act and section 4

of the Keystone Recreation, Park and Conservation Fund Act is

intended only to conform to the style of the Pennsylvania

Consolidated Statutes and is not intended to change or affect

the legislative intent, judicial construction or

administrative interpretation and implementation of section 4

of the Keystone Recreation, Park and Conservation Fund Act.

(3) Paragraph (2) does not apply to section 1793-A.1(a)

and (e) of the act.

(4) Except as specified in paragraph (5), any difference

in language between section 1794-A.1 of the act and 35

Pa.C.S. § 7365 is intended only to conform to the style of

the act and is not intended to change or affect the

legislative intent, judicial construction or administrative

interpretation and implementation of 35 Pa.C.S. § 7365.

(5) Paragraph (4) does not apply to section 1794-A.1(a)

(1) of the act.

Section 3. The following shall apply:

(1) A reference in any law to the Banking Fund shall be

deemed to be a reference to the Banking Trust Fund.

(2) A reference in any law to the Institution Resolution

Account in the Banking Fund shall be deemed to be a reference

to the Institution Resolution Trust Fund.

(3) A reference in any law to the Keystone Recreation,

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Park and Conservation Fund shall be deemed to be a reference

to the Keystone Recreation, Park and Conservation Trust Fund.

(4) A reference in any law to the Fire and Emergency

Medical Services Loan Fund shall be deemed to be a reference

to the Fire and Emergency Medical Services Loan Trust Fund.

(5) The reference to 35 Pa.C.S. § 7365 in 35 Pa.C.S. §§

7363 and 7376 shall be deemed to be a reference to section

1794-A.1 of the act.

Section 4. Repeals are as follows:

(1) The General Assembly finds that the repeal under

paragraph (2) is necessary to effectuate the addition of

sections 1791-A.1 and 1792-A.1 of the act.

(2) Section 1113-A of the act of May 15, 1933 (P.L.565,

No.111), known as the Department of Banking and Securities

Code, is repealed.

(3) The General Assembly finds that the repeal under

paragraph (4) is necessary to effectuate the addition of

section 1793-A.1 of the act.

(4) Section 4 of the act of July 2, 1993 (P.L.359,

No.50), known as the Keystone Recreation, Park and

Conservation Fund Act, is repealed.

(5) The General Assembly finds that the repeal under

paragraph (6) is necessary to effectuate the addition of

section 1794-A.1 of the act.

(6) The provisions of 35 Pa.C.S. § 7365 are repealed.

Section 2 5. This act shall take effect immediately.

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