Pennsylvania Act 1906-11 (session 1) — STATE DEPOSITS REGULATED

Act text

STATE DEPOSITS REGULATED
         Act of Feb. 17, 1906, Special Session 1, P.L. 45, No. 11     Cl. 72
                      Special Session No. 1 of 1906
                               No. 1906-11

                                  AN ACT

     To regulate the deposits of State funds, to prescribe the method
        of selecting State depositories, to limit the amount of State
        deposits, to provide for the security of such deposits, to
        fix the rate of interest thereon, to provide for the
        publication of monthly statements of moneys in the general
        and sinking funds, to declare it a misdemeanor to give or
        take anything of value for obtaining the same, and
        prescribing penalties for violations of this act.
        Section 1.  Be it enacted, &c., That on and after the first
     day of June, one thousand nine hundred and six, the selection of
     the banks, banking institutions, or trust companies, in which
     the State moneys shall be deposited, shall be made by the
     Revenue Commissioners and the Banking Commissioner, jointly, or
     a majority of them; and for this purpose they shall meet once a
     month, or oftener at the call of the State Treasurer; but no
     selection shall be made of any institution not subject to
     National or State supervision, except as hereafter provided.
        Section 2.  All banks, banking institutions, or trust
     companies desiring to become depositories of State moneys shall
     make written application to the State Treasurer for a deposit of
     State moneys, designating the amounts of deposits solicited, and
     accompanying their applications by a written statement of the
     amount of their capital actually paid in, the amount of their
     surplus, the number of their stockholders, and whether their
     stock is well distributed, or largely held by a few individuals,
     and the length of time that said institution has been engaged in
     business under its charter, verified by the oath or affirmation
     of the president, cashier, or trust officers, as the case may
     be. Said State Treasurer shall present the same to the Revenue
     Commissioners and Banking Commissioner, acting jointly, for
     their consideration, within thirty days, and that where a
     selection of any bank, banking institution, or trust company as
     a depository of State moneys has been made by the Revenue
     Commissioners and the Banking Commissioner, or a majority of
     them, as aforesaid, without a previous application, as
     aforesaid, it shall be the duty of the depository so selected to
     furnish, on request, the information aforesaid, verified in the
     manner stated.
        Section 3.  That the Revenue Commissioners and Banking
     Commissioner, or a majority of them, shall be and are hereby
     authorized to select as depositories for State funds private
     banking institutions, located and doing business in this
     Commonwealth: Provided, The same file a statement in writing, to
     the said Revenue Commissioners and the Banking Commissioner,
     that they will subject themselves to the same supervision, in
     all regards, as the other depositories named in the foregoing
     section, two. And provided further, That they will, in all
     regards, comply with the conditions required of any other
     depository; and after such selection of any private banking
     institution as a depository, the same shall be in all regards
     subject to such supervision and restrictions as other
     depositories selected by the Revenue Commissioners and Banking
     Commissioner, and be subject to examination by the State Banking
     Department and its examiners, at any time; and it shall be the
     duty of said Banking Department to make such examinations at any
     time after said private banking institutions become State
     depositories.
        Section 3.1.  (a)  Notwithstanding any other provision of
     law, to be a depository of State funds of moneys of the
     Pennsylvania Municipal Retirement Fund, or of any municipal
     pension plan funds, any moneys or assets on deposit which shall
     be invested in the stocks, securities or other obligations of
     any institution or company doing business in or with Northern
     Ireland, or with agencies or instrumentalities thereof, shall be
     invested in accordance with the provisions of subsection (c).
        (b)  On or before the first day of January of each year, the
     State Treasurer and Auditor General shall determine the
     existence of affirmative action taken by institutions or
     companies doing business in Northern Ireland to eliminate ethnic
     or religious discrimination based on actions taken for:
        (i)  Increasing the representation of individuals from
     underrepresented religious groups in the work force, including
     managerial, supervisory, administrative, clerical and technical
     jobs.
        (ii)  Providing adequate security for the protection of
     minority employes both at the workplace and while traveling to
     and from work.
        (iii)  The banning of provocative religious or political
     emblems from the workplace.
        (iv)  Publicly advertising all job openings and making
     special recruitment efforts to attract applicants from
     underrepresented religious groups.
        (v)  Providing that layoff, recall and termination procedures
     should not in practice favor particular religious groupings.
        (vi)  The abolition of job reservations, apprenticeship
     restrictions and differential employment criteria which
     discriminate on the basis of religion or ethnic origin.
        (vii)  The development of training programs that will prepare
     substantial number of current minority employes for skilled
     jobs, including the expansion of existing programs and the
     creation of new programs to train, upgrade and improve the
     skills of minority employes.
        (viii)  The establishment of procedures to assess, identify
     and actively recruit minority employes with potential for
     further advancement.
        (ix)  The appointment of senior management staff members to
     oversee affirmative action efforts and the setting up of
     timetables to carry out affirmative action principles.
        (c)  Consistent with sound investment policy, the State
     Treasurer and Auditor General shall insure that State
     depositories invest State funds, moneys of the Pennsylvania
     Municipal Retirement Fund and municipal pension plan funds in
     the manner that the investments in institutions doing business
     in or with Northern Ireland shall reflect the advances made by
     the institutions in eliminating discrimination according to the
     principles set forth in subsection (b).
        (3.1 added May 28, 1992, P.L.260, No.44)
        Section 4.  That no bank, banking institution, or trust
     company shall receive a deposit of State moneys in excess of
     twenty-five per centum, of its paid in capital and surplus; and
     no bank, banking institution, or trust company shall receive a
     deposit, or have at any one time an aggregate of deposits, in
     excess of three hundred thousand dollars ($300,000): Provided,
     That this section shall not apply to the institutions to be
     designated by the Revenue Commissioners and the Banking
     Commissioner, or a majority of them, as active depositaries of
     State funds, subject to check daily by the State Treasurer. The
     active banks, so designated, shall be required to make all
     collections for the Commonwealth without cost or compensation,
     but at no time shall the combined deposits in the active banks
     exceed the total sum of six million dollars.
        (4 amended Jul. 18, 1917, P.L.1065, No.349)
        Section 5.  That all banks, banking institutions, and trust
     companies, selected as aforesaid, shall, upon the receipt of
     notice of such selection as depositories of State moneys,
     furnish a bond to secure payment of deposits and interest 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
     Revenue Commissioners and Banking Commissioner, or a majority of
     them, in double the amount of the deposit to be made, and, if
     corporate bonds are given, no one company shall be approved in
     an aggregate amount in excess of five times its capital, surplus
     and reserve.
        Section 6.  That 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 to qualify for more than one-fourth of
     the total amount required.
        Section 7.  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 of
     United States, municipal, or county bonds, to be approved by the
     Revenue Commissioners and the Banking Commissioner, or a
     majority of them, in an amount, measured by their actual market
     value, equal to the amount of deposit so secured and twenty per
     centum besides. Said bonds to be accompanied by proper
     assignments or power of attorney to transfer the same, and said
     trust deposit of securities to be maintained, on request, at the
     amount aforesaid, in case of any depreciation in the value
     thereof.
        Section 8.  The interest rate to be paid by the depositaries
     upon all State deposits shall be at the rate of two per centum
     per annum by all active depositaries, and at the rate of three
     per centum per annum by all nonactive depositaries.
        The Revenue Commissioners and the Banking Commissioner, or a
     majority of them, shall designate three banks or trust companies
     in Dauphin County, two banks or trust companies in Philadelphia
     County, and two banks or trust companies in Allegheny County, to
     be known as active depositaries, in which shall be deposited a
     sufficient amount of the daily receipts of the State Treasury to
     transact the current business of the Commonwealth; and said
     Revenue Commissioners and the Banking Commissioner, or a
     majority of them, shall have power, if to them it seem
     necessary, to designate two other banks or trust companies,
     located in any of the counties above mentioned or in any other
     county of the Commonwealth, to be known as active depositaries,
     and to be used for the purposes above mentioned.
        (8 amended Apr. 26, 1921, P.L.279, No.138 and May 5, 1921,
     P.L.387, No.186)
        Section 9.  Nothing in the act contained shall be held to
     prevent the State Treasurer from withdrawing any or all of said
     funds, so deposited, for the purpose of paying the
     appropriations and obligations of the Commonwealth; and nothing
     herein contained shall in any way affect the duty of the State
     Treasurer to keep a correct and accurate account of all moneys
     received for the use of the Commonwealth, and pay out the same
     only on authority of law; but the said State Treasurer shall be,
     as heretofore, personally responsible for a faithful performance
     of his duties under the law, and for a proper accounting of all
     moneys paid to him as State Treasurer; but he shall not be held
     personally liable for any moneys that may be lost by reason of
     the failure or insolvency of any bank, banking institution or
     trust company selected as aforesaid.
        Section 10.  The Revenue Commissioners and the Banking
     Commissioner or a majority of them, in case they are of the
     opinion that the credit of any of said depositories is impaired,
     the safety of the State deposits imperiled, or for any other
     cause whatsoever, shall have power and authority to require the
     State Treasurer to reduce, change, or wholly withdraw, within
     thirty days, any deposit or deposits held by any such depository
     or depositories.
        Section 11.  The State Treasurer, on the last business day of
     June, September, December and March, shall render a statement of
     account to the Auditor General, giving in detail the different
     sums which go to make up the grand total of the amount on that
     day in the State Treasury, including moneys appropriated to the
     sinking fund. Such statement shall include the names of banks,
     banking institutions or trust companies with whom the public
     funds are deposited, with the various amounts of such deposits,
     and shall be verified by oath or affirmation of the State
     Treasurer, and recorded in a book kept for that purpose in the
     Auditor General's office; and such record shall be open for the
     inspection of the Governor, heads of departments, members of the
     Legislature, or any citizen of the State desiring to inspect the
     same; and shall be correctly published in not more than six
     newspapers one of which shall be published at Harrisburg, to be
     selected by the Auditor General, for general information;
     payment of publication to be made from moneys in the State
     Treasury appropriated for this purpose.
        (11 amended Apr. 30, 1986, P.L.106, No.35)
        Section 12.  It shall be a misdemeanor for any individual,
     whether a State officer, representative of a State officer, or a
     bank officer, or any representatives of a bank or bank officer,
     or officer of any trust company, or representative of any such
     officer, or any go-between, to pay, receive, offer, or request
     any money or valuable thing or promise for the use of such State
     moneys, other than the interest payable to the State; or for any
     person to secure, or assist in securing, a State deposit for his
     or her own personal gain or benefit. Said misdemeanor shall be
     punishable by a fine of not less than five hundred dollars and
     not less than one year's imprisonment for each offense.