Bill Text: PA HB2631 | 2009-2010 | Regular Session | Introduced

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Bill Title: Further providing for State depositories.

Spectrum: Strong Partisan Bill (Democrat 14-1)

Status: (Introduced - Dead) 2010-06-30 - Referred to COMMERCE [HB2631 Detail]

Download: Pennsylvania-2009-HB2631-Introduced.html

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PRINTER'S NO. 4048
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2631 Session of2010
INTRODUCED BY SANTARSIERO, BRADFORD, BRIGGS, CALTAGIRONE, DALEY, DONATUCCI, GEORGE, HARHAI, JOSEPHS, W. KELLER, KORTZ, O'NEILL, PAYTON AND SIPTROTH, JUNE 30, 2010
REFERRED TO COMMITTEE ON COMMERCE, JUNE 30, 2010
AN ACT
Amending the act of April 9, 1929 (P.L.343, No.176), entitled,
as amended, "An act relating to the finances of the State
government; 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," further providing for State depositories.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 505(a)2 and (c) of the act of April 9,
1929 (P.L.343, No.176), known as The Fiscal Code, amended
December 14, 1967 (P.L.810, No.347), December 1, 1971 (P.L.581,
No.151) and July 11, 1980 (P.L.554, No.115), are amended to
read:
Section 505. State Depositories.--The Board of Finance and
Revenue shall have the power, and its duty shall be,
(a) To select and designate, as depositories for the State
moneys, banks, banking institutions, trust companies or savings
and loan associations, which are subject to national or State
supervision, and the accounts of which are insured by a
corporation organized under the Laws of the Commonwealth, or by
an instrumentality of the Federal Government, and each of which,
* * *
2. Shall, upon the receipt of notice of its selection as a
depository of State moneys, furnish a bond to secure payment of
deposits and interests to the Commonwealth of Pennsylvania, with
a proper warrant of attorney to confess judgment in favor of the
Commonwealth, secured by a surety company or individual sureties
to be approved by the board, in the amount of the deposit to be
made. If a corporate bond be given, no one surety company shall
be approved in an aggregate amount in excess of five times its
capital surplus, and reserve, and, whenever individual sureties
are presented for approval, they shall qualify in an aggregate
over and above their individual liabilities to three times the
amount of the deposit. No one person may qualify for more than
one-fourth of the total amount of the bond required: Provided,
That when any deposit of State moneys is insured with the
Federal Deposit Insurance Commissioner or any other corporation
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hereafter organized by the United States for the purpose of
insuring deposits, such depository shall not be required to
furnish bond or security to cover the amount of such deposit so
insured: And provided further, That, in lieu of the surety bonds
of surety companies or of individuals as aforesaid, the deposit
of State moneys may be secured by the deposit with the State
Treasurer, with the Federal Reserve Bank of Philadelphia or
Pittsburgh, or with any bank or bank and trust company organized
under the laws of this Commonwealth or any national association
located in this Commonwealth which shall be approved by the
State Treasurer, subject to such regulations as may be
prescribed by the Board of Finance and Revenue or the State
Treasurer, or both, as the case may be, of bonds or notes of the
United States, or bonds or notes which the United States fully
guarantees both as to principal and interest, bonds of the
Delaware River Joint Commissions, bonds of the Pennsylvania
Turnpike Commission, bonds of the State Public School Building
Authority, bonds of The General State Authority, bonds of the
State Highway and Bridge Authority, bonds of the Pennsylvania
Housing Agency, bonds or tax anticipation notes of this
Commonwealth, or of any municipal subdivision, institution
district, or school district or county thereof, to be approved
by the board, in an amount measured by their actual market value
equal to the amount of deposit so secured and [twenty] two per
centum in addition thereto. Said bonds and any additions to and
substitutions and exchanges therefor shall be subject to proper
assignment, or right to sell, or power of attorney to transfer
the same, and said trust deposit of securities shall be
maintained, on request, at the amount aforesaid, in case of any
depreciation in the value thereof: Provided, That no bonds, or
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other security, shall be required of State depositories for
State deposits to the extent, that such State deposits are
insured under the provisions of Section 12 B of the Federal
Reserve Act, approved the twenty-third day of December, one
thousand nine hundred and thirteen, its amendments and
supplements.
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(c) To designate [two banks or trust companies in Dauphin
County, two banks or trust companies in Allegheny County, two
banks or trust companies in Philadelphia County, and thirteen]
at least eight banks or trust companies in any part of the
Commonwealth, to be known as active depositories, in which shall
be deposited a sufficient amount of the daily receipts of the
State Treasury to transact the current business of the
Commonwealth. [The board may designate nine other banks or trust
companies, located anywhere in the Commonwealth, to be known as
active depositories, and to be used for the purpose above
mentioned.]
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Section 2. This act shall take effect in 60 days.
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