Jun. 25, 2015
HARRISBURG – Pennsylvania’s local government entities would have more flexibility to invest local funds under legislation sponsored by Rep. Kate Harper (R-Montgomery) and approved unanimously by the House Local Government Committee.
“In this tough economy, local governments are tasked with making wise investments of their operating funds to maximize the return without risking the funds. Many would like the ability to work with local banks to keep the funds invested in their own communities,” said Harper, who chairs the Local Government Committee. “This legislation would give our cities, boroughs, townships, counties, school districts and municipal authorities more options while also protecting taxpayers against risky investments.”
Under
House Bill 1296, local government entities would be authorized to invest in common, high-quality money market instruments, such as repurchase agreements, commercial paper, negotiable certificates of deposit and bankers’ acceptances. Harper noted that these types of investments are permitted in several other states.
The bill also includes an annual reporting requirement that applies only to local government investment trusts or pools. The report, which would be submitted to the Department of Community and Economic Development, would include information about activity on newly authorized investments, as well as any fees related to purchase and the name of the party receiving the fee.
The bill is supported by, among others, the Pennsylvania State Association of Boroughs, Pennsylvania State Association of Township Supervisors, Pennsylvania State Association of Township Commissioners, Pennsylvania Municipal League, Pennsylvania Municipal Authorities Association, and Pennsylvania Association of School Administrators.
Representative Kate Harper
61st District
Pennsylvania House of Representatives
Media Contact: Rep. Harper’s Blue Bell Office
610.277.3230
KateHarper.net /
Facebook.com/RepKateHarper
kharper@pahousegop.com