1Amending the act of July 25, 1973 (P.L.217, No.53), entitled "An
2act authorizing cities of the first class and second class to
3invest all funds received and deposited with the city
4treasurer in certain commercial paper under certain terms and
5conditions," providing for investment of public corporation
6or authority funds.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. The act of July 25, 1973 (P.L.217, No.53),
10entitled "An act authorizing cities of the first class and
11second class to invest all funds received and deposited with the
12city treasurer in certain commercial paper under certain terms
13and conditions," is amended by adding a section to read:

14Section 1.1. (a) In addition to products otherwise
15authorized by law, a local government investment trust or local<-
16government investment pool may, on behalf of a public
17corporation or municipal authority m<-ay, invest and reinvest
18money of the public corporation or municipal authority in any of
19the following financial products:

1(1) Obligations, participations or other instruments of
2any Federal agency, instrumentality or United States
3government-sponsored enterprise, including those issued or
4fully guaranteed as the <-the principal and interest by Federal
5agencies, instrumentalities or United States government-
6sponsored enterprises, if the debt obligations are rated at
7least "A" or its equivalent by at least two nationally
8recognized statistical ratings organizations.

9(2) Repurchase agreements with respect to United States
10Treasury bills or obligations, participations or other
11instruments of or guaranteed by the United States or any
12Federal agency, instrumentality or United States government-
13sponsored enterprise.

14(3) Negotiable certificates of deposit or other
15evidences of deposit, with a remaining maturity of three
16years or less, issued by a nationally or State-chartered
17bank, a Federal or State savings and loan association or a
18State-licensed branch of a foreign bank. For obligations with
19a maturity of one year or less, the debt obligations of the
20issuing institution or its parent must be rated in the top
21short-term rating category by at least two nationally
22recognized statistical ratings organizations. For obligations
23with a maturity in excess of one year, the senior debt
24obligations of the issuing institution or its parent must be
25rated at least "A" or its equivalent by at least two
26nationally recognized statistical ratings organizations.

27(4) Bills of exchange or time drafts drawn on and
28accepted by a commercial bank, otherwise known as bankers'
29acceptances, if the bankers' acceptances do not exceed 180
30days' maturity and the accepting bank is rated in the top

1short-term category by at least two nationally recognized
2statistical ratings organizations.

3(5) Commercial paper issued by corporations or other
4business entities organized in accordance with Federal or
5State law, with a maturity not to exceed 270 days, if the
6issuing corporation or business entity is rated in the top
7short-term category by at least two nationally recognized
8statistical ratings organizations.

<-9(6) Debt obligations, with a remaining maturity of three
10years or less, issued by corporations or other business
11entities organized and operating within the United States or
12by depository institutions licensed by the United States or
13any state, if the debt obligations are rated at least "A" or
14the equivalent by at least two nationally recognized
15statistical ratings organizations.

16(7) Shares of an investment company registered under the
17Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §
1880a-1 et seq.) whose shares are registered under the
19Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77a et
20seq.), if all of the following conditions are met:

21(i) The investments of the company are the
22authorized investments under this subsection.

23(ii) The investment company is managed in accordance
24with 17 CFR 270.2a-7 (relating to money market funds).

25(iii) The investment company is rated in the highest
26category by a nationally recognized rating agency.

27(b)  <-Other investment powers.--Nothing in subsection (a)
28shall be construed to supersede or preempt other investment
29powers of public corporations or municipal authorities as
30authorized by law.

1(c) Definition.--As used in this section, the term "public<- 
2corporation" (c) (1) Eac<-h local government investment trust or 
3local government investment pool that invests money for a public 
4corporation or municipal authority as provided for under this 
5section shall file with the Department of Community and Economic 
6Development, within ninety days of completion of the public 
7corporation's or municipal authority's fiscal year, a 
8comprehensive annual financial report for each individual public 
9corporation or municipal authority that covers the previous 
10fiscal year. The report shall be made available to the public, 
11upon request, during normal business hours. Nothing shall 
12prohibit the posting of the report on the Internet.

13(2) The report shall provide all of the following:

14(i) A breakdown of each type of investment made pursuant to
15this section.

16(ii) For each type of investment made, the activity, rate of
17return and costs incurred, including all administrative and
18investment fees and the names of consultants or advisors to whom
19the fees were paid.

20(d) As used in this section, the following words and phrases
21shall have the meanings given to them in this subsection unless
22the context clearly indicates otherwise:

23"Local government investment trust" or "local government
24investment pool" shall mean a trust or pool offered by the State
25Treasurer or multiple public corporations or municipal
26authorities, governed by a board of directors or board of
27trustees for the exclusive benefit of the participating public
28corporations or municipal authorities.

29"Public corporation" shall have the same meaning as given to 
30it in section 1 of the act of May 16, 1929 (P.L.1773, No.581),
 

1entitled, "An act to supplement an act approved the twentieth 
2day of April, one thousand eight hundred and seventy-four 
3(Pamphlet Laws, sixty-five), entitled 'An act to regulate the 
4manner of increasing the indebtedness of municipalities; to 
5provide for the redemption of the same; and to impose penalties 
6for illegal increase thereof,' by authorizing the sale of 
7property purchased by a public corporation out of funds provided 
8by increase of indebtedness of such corporation; and providing 
9for the disposition of the funds realized from such sale."

10Section 2. This act shall take effect in 60 days.