H1614B2012A03738     BIL:CMM  09/15/09     #90        A03738

AMENDMENTS TO HOUSE BILL NO. 1614

Sponsor: REPRESENTATIVE BELFANTI

Printer's No. 2012

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Amend Bill, page 1, line 30, by striking out "repealing" and

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inserting

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further providing for the State Workers' Insurance Board

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and for

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Amend Bill, page 2, lines 3 through 7, by striking out all of

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said lines and inserting

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Section 1.  Sections 1731-A and 1732-A of the act of April 9,

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1929 (P.L.343, No.176), known as The Fiscal Code, added July 7,

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2005 (P.L.174, No.41), are reenacted and amended to read:

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Section 1731-A.  State Workers' Insurance Board.

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Notwithstanding any inconsistent provisions of section 1512

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of the act of June 2, 1915 (P.L.736, No.338), known as the

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Workers' Compensation Act, section 504 of the act of November

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30, 1965 (P.L.847, No.356), known as the Banking Code of 1965,

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section 922 of the act of December 14, 1967 (P.L.746, No.345),

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known as the Savings Association Code of 1967, and any other law

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of this Commonwealth, the power of the State Workers' Insurance

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Board to invest money shall include the power to hold, purchase,

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sell, assign, transfer and dispose of securities, including

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common stock with the following restrictions:

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(1)  Investments in equities may not exceed the lesser

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of:

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(i)  20% of the State Workers' Insurance Fund's

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assets; or

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(ii)  the State Workers' Insurance Fund's statutory

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surplus after discount, except that in the event that the

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statutory surplus is less than 7 1/2% of the book value

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of the assets of the State Workers' Insurance Fund, the

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investment in equities may not exceed the percentage set

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forth in the provisions applicable to savings banks in

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section 504 of the Banking Code of 1965.

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(1.1)  Investments in equities shall be made subject to

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the prudent man rule of section 504(c) of the Banking Code of

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1965.

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(2)  The State Workers' Insurance Board shall establish a

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policy for investments and shall meet at least annually to

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develop a schedule for rebalancing its investments in

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securities to meet the restriction of paragraph (1).

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Section 1732-A.  Expiration.

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This subarticle shall expire June 30, [2009] 2014.

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Section 2.  The reenactment and amendment of sections 1731-A

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and 1732-A shall apply retroactively to June 30, 2009.

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Amend Bill, page 2, line 8, by striking out "2" and inserting

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