SB 1056 — An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, in Treasury Department, further providing for investment of moneys; establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Administrative Fund and the Keystone Saves Program Advisory Board; providing for powers and duties of the Treasury Department, for investment and fiduciary responsibilities and for program implementation; and providing for the electric vehicle road user charge effective date.

HOUSE AMENDED PRIOR PRINTER'S NO.NOS.

13641364, 1927 PRINTER'S NO.

19271970 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

1056 2024 INTRODUCED BY ARGALL, PHILLIPS-HILL, COSTA, BROWN, BAKER, SCHWANK AND MILLER, FEBRUARY 12, 2024 AS REPORTEDRE-REPORTED FROM COMMITTEE ON FINANCE,APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, OCTOBER 2,21, 2024 AN ACT Amending the act of April 9, 1929 (P.L.343, No.176), entitled "An act relating to the finances of the State government;

AND PROVIDING FOR POWERS AND DUTIES OF THE TREASURY <-- DEPARTMENT, FOR INVESTMENT AND FIDUCIARY RESPONSIBILITIES AND FOR PROGRAM IMPLEMENTATION.IMPLEMENTATION;

AND PROVIDING FOR THE ELECTRIC <-- VEHICLE ROAD USER CHARGE EFFECTIVE DATE.

20240SB1056PN192720240SB1056PN1970 - 2 - "ADMINISTRATIVE FUND." THE KEYSTONE SAVES ADMINISTRATIVE FUND ESTABLISHED UNDER SECTION 313-A.

20240SB1056PN192720240SB1056PN1970 - 3 - AND (B) FOR AT LEAST SIX CONSECUTIVE MONTHS OF THE PRECEDING CALENDAR YEAR.

"PARTICIPANT." AN INDIVIDUAL WHO IS CONTRIBUTING TO AN IRA UNDER THE PROGRAM OR HAS AN IRA ACCOUNT BALANCE UNDER THE 20240SB1056PN192720240SB1056PN1970 - 4 - PROGRAM.

"ROTH IRA." A ROTH INDIVIDUAL RETIREMENT ACCOUNT OR 20240SB1056PN192720240SB1056PN1970 - 5 - INDIVIDUAL RETIREMENT ANNUITY UNDER SECTION 408A OF THE INTERNAL REVENUE CODE.

20240SB1056PN192720240SB1056PN1970 - 6 - (A) ESTABLISHMENT.--THE KEYSTONE SAVES PROGRAM FUND IS ESTABLISHED AS A SEPARATE FUND IN THE STATE TREASURY.

(C) EXEMPTION FROM SECURITIES LAWS.--THE PROGRAM FUND SHALL BE CONSTRUED TO BE AN AGENCY OR INSTRUMENTALITY OF THE COMMONWEALTH AND SHALL BE EXEMPT FROM ANY STATUTE REGULATING SECURITIES, INCLUDING THE ACT OF DECEMBER 5, 1972 (P.L.1280, 20240SB1056PN192720240SB1056PN1970 - 7 - NO.284), KNOWN AS THE PENNSYLVANIA SECURITIES ACT OF 1972.

(B) OPERATING AND ADMINISTRATIVE COSTS.-- (1) THE DEPARTMENT SHALL, THROUGH THE GOVERNOR, ANNUALLY SUBMIT TO THE GENERAL ASSEMBLY A BUDGET COVERING THE TOTAL 20240SB1056PN192720240SB1056PN1970 - 8 - FEES AND EXPENSES FOR THE PROGRAM.

(D) REPAYMENT OF APPROPRIATION.--THE DEPARTMENT SHALL OVER TIME REPAY TO THE GENERAL FUND MONEY APPROPRIATED COVERING THE 20240SB1056PN192720240SB1056PN1970 - 9 - TOTAL COSTS, FEES AND EXPENSES FOR THE PROGRAM.

(A) ORGANIZATIONAL MEETING.--THE STATE TREASURER, OR THE 20240SB1056PN192720240SB1056PN1970 - 10 - DESIGNEE UNDER SECTION 322-A(A)(2), SHALL CALL THE ORGANIZATIONAL MEETING OF THE BOARD.

SUBARTICLE D 20240SB1056PN192720240SB1056PN1970 - 11 - DEPARTMENT POWERS AND DUTIES SECTION 331-A.

20240SB1056PN192720240SB1056PN1970 - 12 - (4) SOLICIT AND ACCEPT GIFTS, GRANTS, LOANS AND OTHER AID FROM ANY PERSON, GOVERNMENT ENTITY, CORPORATION OR OTHER ENTITY AND PARTICIPATE IN ANY FEDERAL, STATE OR LOCAL GOVERNMENT PROGRAM THAT RESULTS IN ADDITIONAL MONEY BEING AVAILABLE FOR ESTABLISHMENT AND IMPLEMENTATION OF THE PROGRAM.

(IV) MAXIMIZES SIMPLICITY AND EASE OF ADMINISTRATION FOR EMPLOYERS, MINIMIZES FINANCIAL COSTS FOR EMPLOYERS, AND MINIMIZES INTERACTIONS BETWEEN COVERED EMPLOYEES AND 20240SB1056PN192720240SB1056PN1970 - 13 - COVERED EMPLOYERS;

(II) SAVINGS STRATEGIES THAT MAY BE APPROPRIATE, INCLUDING INFORMATION DESCRIBING THE POTENTIAL VALUE OF CONTINUING INCOME STREAMS DURING RETIREMENT THAT MIGHT BE DERIVED FROM CURRENT ACCOUNT BALANCES AND PRODUCTS 20240SB1056PN192720240SB1056PN1970 - 14 - RELATING TO GENERATING SUCH INCOME.

(15) MAKE AND ENTER INTO CONTRACTS, AGREEMENTS OR OTHER ARRANGEMENTS TO COLLABORATE OR COOPERATE WITH OTHER STATE AND LOCAL GOVERNMENT AGENCIES AND GOVERNMENTAL ENTITIES OF OTHER STATES THAT MAINTAIN RETIREMENT SAVINGS PROGRAMS COMPATIBLE WITH THE PROGRAM REGARDING THE SHARING OF INVESTMENT AND ADMINISTRATIVE FUNCTIONS, INCLUDING PRUDENT COLLECTIVE, COMMON OR POOLED INVESTMENTS WITH FUNDS OF OTHER STATES' 20240SB1056PN192720240SB1056PN1970 - 15 - PROGRAMS, IN ORDER TO ACHIEVE ECONOMIES OF SCALE AND OTHER EFFICIENCIES DESIGNED TO MINIMIZE COSTS FOR THE PROGRAM.

(A) POLICIES.--THE DEPARTMENT SHALL DEVELOP AND ADOPT INVESTMENT POLICIES THAT DEFINE THE INVESTMENT OBJECTIVES OF THE 20240SB1056PN192720240SB1056PN1970 - 16 - PROGRAM CONSISTENT WITH THE OBJECTIVES OF THE PROGRAM.

20240SB1056PN192720240SB1056PN1970 - 17 - (B) DISTRIBUTION OPTIONS.--THE DEPARTMENT MAY ESTABLISH OTHER INVESTMENT OPTIONS AS THE DEPARTMENT DEEMS NECESSARY OR DESIRABLE IN ACCORDANCE WITH THE INVESTMENT POLICIES DEVELOPED UNDER SECTION 342-A(A).

A COPY OF EACH 20240SB1056PN192720240SB1056PN1970 - 18 - PERFORMANCE REVIEW SHALL BE MADE AVAILABLE ON THE DEPARTMENT'S PUBLICLY ACCESSIBLE INTERNET WEBSITE.

(I) MAKE AVAILABLE TO A COVERED EMPLOYEE INFORMATION 20240SB1056PN192720240SB1056PN1970 - 19 - REGARDING THE PROGRAM PROVIDED BY THE DEPARTMENT.

(III) REGULARLY TAKE DEDUCTIONS FROM A PARTICIPANT'S GROSS WAGES AND REMIT THE DEDUCTIONS TO THE PARTICIPANT'S 20240SB1056PN192720240SB1056PN1970 - 20 - PROGRAM ACCOUNT.

20240SB1056PN192720240SB1056PN1970 - 21 - (10) ALLOW A PARTICIPANT TO ROLL OVER THE PROGRAM ACCOUNT BALANCE INTO SPECIFIED TAX-FAVORED RETIREMENT PLANS OR TRADITIONAL IRAS.

20240SB1056PN192720240SB1056PN1970 - 22 - (A) PROCEDURES.--THE DEPARTMENT SHALL ESTABLISH PROCEDURES FOR A PARTICIPATING EMPLOYER TO REGISTER IN THE PROGRAM AND PROVIDE THE REGISTRATION INFORMATION TO THE DEPARTMENT.

(5) NOTWITHSTANDING ANY OF THE PRECEDING REGISTRATION DEADLINES OF THIS SUBSECTION, COVERED EMPLOYERS THAT PAY THEIR EMPLOYEES THROUGH A PAYROLL SYSTEM OR PAYROLL SERVICE SHALL REGISTER NO LATER THAN 24 MONTHS AFTER THE EFFECTIVE 20240SB1056PN192720240SB1056PN1970 - 23 - DATE OF THIS SUBSECTION.

(A) PROCEDURES.--THE DEPARTMENT SHALL ESTABLISH PROCEDURES 20240SB1056PN192720240SB1056PN1970 - 24 - GOVERNING THE DISTRIBUTION OF FUNDS FROM THE PROGRAM, INCLUDING DISTRIBUTIONS AS MAY BE PERMITTED OR REQUIRED BY THE PROGRAM OR ANY APPLICABLE PROVISIONS OF FEDERAL OR STATE LAW, WITH THE FOLLOWING OBJECTIVES:

(II) INFORMATION DESCRIBING THE OPPORTUNITY TO AND BENEFITS OF A PARTICIPATING EMPLOYER SPONSORING A 20240SB1056PN192720240SB1056PN1970 - 25 - SPECIFIED TAX-FAVORED RETIREMENT PLAN THAT WOULD EXEMPT THE PARTICIPATING EMPLOYER FROM THE REQUIREMENTS OF THE PROGRAM.

20240SB1056PN192720240SB1056PN1970 - 26 - (B) PROHIBITED USES.--THE DEPARTMENT SHALL ENSURE THAT NO ASSETS OF THE PROGRAM ARE USED FOR PURPOSES OTHER THAN THE FOLLOWING:

(B) LOSSES OR DEFICIENCIES.--A COMMONWEALTH AGENCY, COMMISSION OR BOARD OR ANY OFFICER, EMPLOYEE OR MEMBER OF A COMMONWEALTH AGENCY, COMMISSION OR BOARD SHALL NOT BE LIABLE FOR 20240SB1056PN192720240SB1056PN1970 - 27 - THE LOSS OR DEFICIENCY RESULTING FROM PARTICULAR INVESTMENTS SELECTED UNDER THIS ARTICLE, EXCEPT FOR LIABILITY THAT ARISES OUT OF A BREACH OF FIDUCIARY DUTY UNDER SECTION 341-A AS DETERMINED BY A COMPETENT COURT OF LAW.

(B) FIDUCIARIES.--A PARTICIPATING EMPLOYER OR ANOTHER EMPLOYER SHALL NOT BE A FIDUCIARY IN RELATION TO THE PROGRAM OR 20240SB1056PN192720240SB1056PN1970 - 28 - ANY OTHER ARRANGEMENT UNDER THE PROGRAM.

20240SB1056PN192720240SB1056PN1970 - 29 - (2) A REPORT PREPARED BY THE DEPARTMENT, WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING:

20240SB1056PN192720240SB1056PN1970 - 30 - (I) THE ACCOUNT BALANCE IN A PARTICIPANT'S PROGRAM ACCOUNT, INCLUDING THE VALUE OF THE PARTICIPANT'S INVESTMENT IN EACH INVESTMENT OPTION SELECTED BY THE PARTICIPANT.

(1) IT IS NECESSARY TO ADMINISTER THE PROGRAM IN A MANNER CONSISTENT WITH THIS ARTICLE OR FEDERAL OR STATE TAX 20240SB1056PN192720240SB1056PN1970 - 31 - LAWS.

SUBARTICLE G (RESERVED) SUBARTICLE H MISCELLANEOUS PROVISIONS 20240SB1056PN192720240SB1056PN1970 - 32 - SECTION 381-A.

SectionSECTION 22.1. 3.

NOTWITHSTANDING SECTION 5(3) OF THE ACT OF JULY <-- 17, 2024 (P.L.917, NO.85), ENTITLED "AN ACT AMENDING TITLE 75 (VEHICLES) OF THE PENNSYLVANIA CONSOLIDATED STATUTES, IN GENERAL PROVISIONS, FURTHER PROVIDING FOR DEFINITIONS;

IN LIQUID FUELS AND FUELS TAX, FURTHER PROVIDING FOR DEFINITIONS AND FOR IMPOSITION OF TAX, EXEMPTIONS AND DEDUCTIONS AND PROVIDING FOR ELECTRIC VEHICLE ROAD USER CHARGE;