Pennsylvania SB 1040: An Act authorizing the State Treasurer to waive interest on budgetary impasse investment loans.

Bill Text

PRINTER'S NO. 1208
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1040
Session of
2025
INTRODUCED BY K. WARD, PITTMAN AND MARTIN, OCTOBER 3, 2025
REFERRED TO APPROPRIATIONS, OCTOBER 3, 2025
AN ACT
Authorizing the State Treasurer to waive interest on budgetary
impasse investment loans.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Budgetary
Impasse Investment Loan Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Budgetary impasse." Any of the following:
(1) The period beginning July 1, 2025, and ending on the
effective date of a General Appropriation Act for the 2025-
2026 fiscal year.
(2) The period beginning July 1, 2026, and ending on the
effective date of a General Appropriation Act for the 2026-
2027 fiscal year.
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"Budgetary impasse investment loan." An investment loan
entered into or otherwise authorized by the State Treasurer,
pursuant to section 301.1 of the Fiscal Code, during a budgetary
impasse, the purpose of which is to provide short-term funding
support to a loan recipient in anticipation of the receipt of
State appropriation payments subsequent to the enactment of the
General Appropriation Act for the 2025-2026 fiscal year or the
General Appropriation Act for the 2026-2027 fiscal year.
"Fiscal Code." The act of April 9, 1929 (P.L.343, No.176),
known as The Fiscal Code.
"Head Start." A program funded under the Federal Head Start
Act established by the Omnibus Budget Reconciliation Act of 1981
(Public Law 97-35, 95 Stat. 357) and carried out by a Head Start
agency or delegate agency that provides ongoing comprehensive
child development services.
"Loan recipient." Any of the following:
(1) The governing body of a county government.
(2) A domestic violence entity which receives a direct
grant from the Department of Human Services from the
appropriation for domestic violence programs.
(3) A Head Start agency.
(4) A rape crisis entity which receives a direct grant
from the Department of Human Services from the appropriation
for rape crisis programs.
(5) An approved provider under the Pennsylvania Pre-K
Counts Program that receives a direct grant from the
Department of Education from the appropriation for the Pre-K
Counts Program.
Section 3. Waiver of interest.
The State Treasurer may waive or otherwise forgo, in the
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State Treasurer's sole discretion, the imposition, demand and
collection of any interest, costs or fees associated with a
budgetary impasse investment loan issued pursuant to section
301.1 of the Fiscal Code, the exercise of which shall not be
deemed a violation of or otherwise inconsistent with the State
Treasurer's fiduciary investment standard under section 301.1(h)
and (i) of the Fiscal Code.
Section 4. Application.
This act shall apply retroactively to July 1, 2025.
Section 5. Effective date.
This act shall take effect immediately.
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