HARRISBURG – Working to ensure responsible management of taxpayer dollars, Rep. Aaron Kaufer’s (R-Luzerne) prudent person investment standard legislation is now law.
“Our state treasurer is essentially the Commonwealth’s head banker – handling, depositing and investing our hard-earned taxpayer dollars,” said Kaufer. “It is important that, as our lead banker, he or she is held accountable for how they choose to use that money.”
This bill extends the authority of the state treasurer to invest monies in the State Treasury according to the prudent investor standard. Under this standard, the State Treasurer is required to act as a fiduciary with the care, skill, prudence, and diligence that a prudent person would use.
“Every dollar that the Commonwealth invests comes from the hard work of Pennsylvanians and should be treated as something that is precious,” said Pennsylvania State Treasurer Joe Torsella. “The prudent person rule is a commonsense policy that ensures the investment of those dollars is done with the same care and diligence that Pennsylvania families use when making important financial decisions in their own homes. I commend the work of Representative Aaron Kaufer to extend the prudent person investment standard, and the General Assembly’s continued commitment to protecting the tax dollars of the people of Pennsylvania.”
This investment standard was first applied to the state treasurer in 2008, and its expiration has been extended periodically several times since. It had been scheduled to expire in 2019, and this will extend that date to 2024.
Kaufer’s House Bill 628
was a companion to Senate Bill 712
, which became law as the Commonwealth’s 2019-20 Fiscal Code.
Representative Aaron Kaufer
120th Legislative District
Pennsylvania House of Representatives
Media Contact: Abby Krueger