Pennsylvania Act 1915-227 — INSURANCE FUND CREATED

Act text

INSURANCE FUND CREATED
                  Act of May 14, 1915, P.L. 524, No. 227              Cl. 72
                                  AN ACT

     Creating a fund for the purpose of rebuilding, restoring, and
        replacing buildings, structures, equipment, or other property
        of the Commonwealth of Pennsylvania, damaged or destroyed by
        fire or other casualty, and regulating the placing of
        insurance thereon, and providing penalties for any violation
        of the provisions of this act.

        Section 1.  Be it enacted, &c., That, for the purpose of
     creating a fund for the rebuilding, restoration, and replacement
     of any structures, buildings, equipment, or other property,
     owned by the Commonwealth of Pennsylvania, and damaged or
     destroyed by fire or other casualty, including boiler explosion,
     flood and flood-related hazards or any other natural disasters,
     the following funds, income, and revenue, of the Commonwealth of
     Pennsylvania are hereby specifically dedicated, appropriated,
     and set apart, to constitute a fund separate and apart from all
     other funds of the Commonwealth, and to be known as the
     Insurance Fund; to wit,
        (a)  All moneys now in the custody of the State Treasurer
     heretofore "Appropriated and set apart for the purpose of paying
     the present indebtedness and the interest thereon, and such
     further indebtedness as may hereafter be contracted on the part
     of the Commonwealth," and commonly known as the sinking-fund, in
     excess of the total amount of the funded obligation or
     indebtedness of the Commonwealth chargeable thereto; the amount
     of such excess in the sinking-fund to be determined by the State
     Treasurer, audited by the Auditor General, and approved by the
     Board of Finance and Revenue, as of the date of the approval of
     this act.
        (b)  ((b) deleted Dec. 9, 1982, P.L.1039, No.243)
        (c)  All payments hereafter made by insurance companies on
     account of loss or damage to property of the Commonwealth,
     caused by fire or other casualty, or on account of the
     cancellation of existing policies of insurance.
        (d)  All income received from interest upon deposits in bank,
     or upon securities in which the said fund may be invested.
        (e)  All income received from the excess tax on foreign fire
     insurance companies from retaliatory provisions with other
     states.
        (1 amended Dec. 9, 1982, P.L.1039, No.243)
        Section 2.  The said fund, and all interest, increment, and
     additions thereto, shall be and remain in the custody of the
     State Treasurer, and shall be invested and reinvested by him,
     under the supervision and direction of the Board of Finance and
     Revenue, in lawfully issued interest-bearing securities of the
     United States of America, the Commonwealth of Pennsylvania, or
     any other of the United States, or any county, city, borough, or
     school district of this Commonwealth, or any obligations of
     municipalities of other States, but, preferably, in such
     securities issued by municipalities within this Commonwealth:
     Provided, however, That current receipts and income applicable
     to said fund shall be deposited, at interest, in the legal
     depositories of the public funds, until the same shall
     accumulate in sufficient amount to justify the investment
     thereof in interest-bearing securities, as hereinbefore
     provided.
        (2 amended Dec. 9, 1982, P.L.1039, No.243)
        Section 3.  The said fund hereby created shall be available
     for expenditure, in the manner hereinafter provided, for the
     rebuilding, restoration, or replacement of buildings,
     structures, equipment, or other property owned by the
     Commonwealth, and damaged or destroyed by fire, boiler
     explosion, flood and flood-related hazards or any other natural
     disasters, or other casualty, and for no other purpose
     whatsoever. And, for such purpose, the State Treasurer is
     authorized and directed, by and with the consent and approval of
     the Board of Finance and Revenue, to make sale, from time to
     time, of such part of such securities as may be necessary for
     the purpose of this act.
        (3 amended Dec. 9, 1982, P.L.1039, No.243)
        Section 4.  (a)  Whenever the total amount of said fund shall
     exceed the sum of three million dollars, no further investment
     in securities shall be made on account thereof; but all
     additional income and receipts applicable thereto shall be
     deposited in legal depositories of public funds, and the excess,
     over and above the said sum of three million dollars, shall be
     transferred annually, on the thirty-first day of December, to
     the general fund of the State Treasury.
        (b)  In the event of a catastrophic loss which completely
     exhausts the moneys in the State Insurance Fund, the General
     Assembly shall provide the necessary funds in order to meet the
     requirements of the National Flood Insurance Program. For the
     purposes of this section the term "catastrophic loss" shall mean
     any damages covered under section 3 which are in excess of the
     three million dollars available in the State Insurance Fund.
        (4 amended Dec. 9, 1982, P.L.1039, No.243)
        Section 5.  Whenever loss or damage by fire, boiler
     explosion, flood or flood-related hazards or any other natural
     disasters, or other casualty shall occur to any structure,
     building, equipment, or other property owned by the Commonwealth
     of Pennsylvania, the department, board of trustees, overseers,
     commissioners, or other branch of the State government having
     control or custody thereof, shall make report of such loss or
     damage to the Secretary of General Services, setting forth
     specifically the use and character of the structure, building,
     equipment, or other property damaged or destroyed, the original
     cost thereof, the estimated amount of the loss or damage, and
     cost of restoration, rebuilding, or replacement, and such other
     data and information as may be required by the said Secretary of
     General Services, who shall make such examination and
     investigation as may be necessary and report the result thereof
     to the Board of Commissioners of Public Grounds and Buildings;
     whereupon the Board of Commissioners of Public Grounds and
     Buildings may, in its discretion, authorize the rebuilding,
     restoration, or replacement of the property damaged or
     destroyed; and, for that purpose is hereby authorized to have
     plans and specifications prepared, and contracts executed, and
     to supervise the erection, construction, or replacement thereof,
     under the supervision of the Secretary of General Services or
     other duly authorized agent of the Board of Public Grounds and
     Buildings; such rebuilding, restoration, or replacement to be in
     substantial accord with the original character, use, and purpose
     of the property damaged or destroyed.
        (5 amended Dec. 9, 1982, P.L.1039, No.243)
        Section 5.1.  With regard to flood and flood-related hazards,
     the fund shall provide coverage to individual State-owned
     buildings and their contents equal to the coverage which would
     otherwise be required by the Federal Government under its
     National Flood Insurance Program.
        (5.1 added Dec. 9, 1982, P.L.1039, No.243)
        Section 6.  All expenditures on account of contracts entered
     into under the provisions of this act shall be examined by the
     Secretary of General Services; and, if found correct, he shall
     certify to the Board of Commissioners of Public Grounds and
     Buildings that the materials have been furnished, and the work
     and labor have been performed, in accordance with the plans,
     specifications, and contracts approved by the said board; and,
     after having been so certified by him, shall be approved by the
     Executive Controller; and, when so approved, shall be audited,
     settled, and paid by the Auditor General and the State
     Treasurer, in the manner provided by law: Provided, That,
     whenever the Board of Commissioners of Public Grounds and
     Buildings shall have taken such action as will involve
     expenditures from said fund, they shall forthwith certify the
     probable amount of expenditure to the State Treasurer and Board
     of Finance and Revenue, who shall forthwith take such action as
     is necessary to provide funds sufficient to meet the obligations
     so entered into.
        (6 amended Dec. 9, 1982, P.L.1039, No.243)
        Section 7.  That, from and after the adoption and approval of
     this act, it shall be unlawful for any department, bureau,
     commission, or other branch of the State Government, or any
     board of trustees, overseers, managers, or other person or
     persons, or custodians of State property, to purchase, secure,
     or obtain any policy of insurance on any property owned by the
     Commonwealth, the term of which policy of insurance shall extend
     beyond the thirty-first day of December, Anno Domini one
     thousand nine hundred and twenty, or to purchase, obtain, or
     secure any such policy of insurance for any amount in excess of
     the amount of insurance outstanding at the date of the approval
     of this act, after deducting from such amount twenty per centum
     thereof for each calendar year which shall have elapsed from and
     after the thirty-first day of December, Anno Domini one thousand
     nine hundred and fifteen, to the date of purchasing, securing,
     or obtaining such policy of insurance: Provided, however, That
     the Board of Public Grounds and Buildings, or the board of
     trustees, inspectors, overseers, or managers of any State
     institution, may, in their discretion, purchase, secure, or
     obtain policies of insurance covering any loss or damage
     occurring to any property owned by the Commonwealth arising from
     boiler explosion: Provided further, That the Department of
     Revenue may, in its discretion, purchase, secure, or otherwise
     obtain policies of insurance on currency, moneys, checks, money
     orders, bank drafts, bills of exchange, notes, and any and all
     other types of negotiable instruments, and on any stamps used or
     intended to be used by the Department of Revenue in connection
     with the levying or collecting of any tax.
        (7 amended May 10, 1956 (1955), P.L.1553, No.515)
        Section 8.  The State Treasurer and his bondsman shall be
     responsible for the safe-keeping of, and accounting for, said
     funds, in the same manner and under the same penalties as for
     the safe-keeping of, and accounting for, the other funds of this
     Commonwealth.