House Bill 859, supporting the state’s banking system, recently advanced the state Senate and heads to Gov. Tom Wolf for his signature.
The bill amends the Department of Banking and Securities Code to convert the Banking Department fund into a trust fund for credit unions, banking institutions, licensees, and customers.
The Department will administer the fund, and all interest earned from deposits or interest will be held in trust and will not be considered general revenue. The reserve will be used to cover emergencies such as adverse economic conditions or loss of revenue.
Money is collected from charges and penalties, fees, and assessments relating to the regulation of institutions and licensees and credit unions.
Money in the fund will be used to pay expenses related to the examination and regulation of institutions.
“House Bill 859 is the result of several years of negotiation between banking groups and the Department of Banking and Securities,” said state Rep. Sheryl Delozier (R-Cumberland), the former majority chairman of the House Commerce Committee who wrote the bill. “All are in support of this final language. It’s time to keep our banking industry regulated appropriately and consumers protected.”
The bill advanced the House of Representatives on May 5.