Oct. 22, 2020 / Press Release
Legislation authored by state Rep. Sheryl Delozier (R-Cumberland), majority chairman of the House Commerce Committee, that would ensure funding dedicated to supporting the integrity of Pennsylvania’s banking system is used solely for that purpose is now in the hands of the state Senate following unanimous passage by the House.
“I’m pleased to be able to pick up this initiative which began with former committee chairman Rep. Mark Keller (R-Perry/Cumberland) and get this bill moving through the legislative process,” Delozier said. “In addition to ensuring the efficiency of our banking system, House Bill 2862
promotes fiscal responsibility by preventing state government from accessing what would become a former source of revenue that was recently tapped for alternative purposes.”
Semi-annual assessments paid by Pennsylvania’s state-chartered banks and credit unions are deposited into the Banking Fund, which is responsible for keeping those institutions in check. Within the last two years, Gov. Tom Wolf’s administration has accessed the fund for use in balancing operating budgets for both the departments of Conservation and Natural Resources and Environmental Protection.
“Both departments are already appropriated sufficient amounts of state funding through taxpayer dollars, which calls into question why they would need approximately $40 million to help balance their budgets if they are operating in a fiscally-responsible manner,” added Delozier. “House Bill 2862 would convert the Banking Fund into a trust fund, thereby rendering it inaccessible to any administration that wishes to use it for something other than its stated intentions.”
Delozier’s legislation would do likewise with the Institution Resolution Account, which is used to pay for costs associated with closing banks, and seizure and liquidation of credit unions.
Questions about this or any legislative issue should be directed to Delozier’s district office at 717-761-4665.
Representative Sheryl Delozier
Pennsylvania House of Representatives
Media Contact: Scott Little
717.260.6137 (office), 717.497.5967 (cell)