House Bill 1296 has been
approved by the Pennsylvania Senate and signed by Governor Tom Wolf. This bill
allows cities, municipalities, and authorities improved flexibility in how
these entities can invest their monies, while also implementing safeguard
measures to protect those instruments.
What High Quality Investment Instruments Are Now Allowed
Under This Bill?
- Obligations, participations or other instruments of any federal agency, instrumentality or United State government-sponsored enterprise
- Certain repurchase agreements
- Certain negotiable certificates of deposit
- Certain bankers’ acceptances
- Certain commercial paper
- Certain shares of an investment company
- Certain savings or demand deposits
How Does House Bill 1296 Benefit Local Governments?
Local governments now have the potential to increase their returns, become aligned with national best practices for public funds investment, allow their officers the same tools as their counterparts in most other states, and institutionalize appropriate risk-management strategies to protect public funds.
Do you have questions regarding House Bill 1296? Contact trash@md-cpas.com to explore the implications for your organization.
Please note this summary update of House Bill 1296 is not meant to substitute for reading the Bill in its entirety.