HB 1322 — An Act amending Title 20 (Decedents, Estates and Fiduciaries) of the Pennsylvania Consolidated Statutes, providing for training of certain State fiduciaries.

PRINTER'S NO.   1514

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1322
                                                 Session of
                                                   2025

     INTRODUCED BY MULLINS, GUENST, PIELLI, GIRAL, HILL-EVANS,
        SANCHEZ, DONAHUE, SCHLOSSBERG, NEILSON, CEPEDA-FREYTIZ,
        CERRATO, GROVE, CIRESI AND GREEN, APRIL 28, 2025

     REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 28, 2025


                                      AN ACT
 1   Amending Title 20 (Decedents, Estates and Fiduciaries) of the
 2      Pennsylvania Consolidated Statutes, providing for training of
 3      certain State fiduciaries.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6      Section 1.    Title 20 of the Pennsylvania Consolidated
 7   Statutes is amended by adding a chapter to read:
 8                                  CHAPTER 74
 9                     TRAINING OF STATE FUND FIDUCIARIES
10   Sec.
11   7401.   Definitions.
12   7402.   Training requirements.
13   7403.   Content of training.
14   7404.   Legal fees.
15   § 7401.   Definitions.
16      The following words and phrases when used in this chapter
17   shall have the meanings given to them in this section unless the
18   context clearly indicates otherwise:
 1      "Commonwealth agency."         A department, board, commission,
 2   agency, authority or other instrumentality of the Commonwealth.
 3      "Designee."         An individual appointed by, and authorized by
 4   law to act in the stead of, a trustee, board member or other
 5   appointed or elected official that stands in a fiduciary
 6   relationship to the members and beneficiaries of a State fund or
 7   a fund of a public pension system.
 8      "Public pension system."         The Public School Employees'
 9   Retirement System, the State Employees' Retirement System, the
10   Pennsylvania Municipal Retirement System and any pension plan
11   maintained by a municipality or a county for its employees.
12      "State fiduciary."        A trustee, board member or other
13   appointed or elected official, or a designee thereof, who stands
14   in a fiduciary relationship to the members and beneficiaries of
15   a State fund or a fund of a public pension system.
16      "State fund."        A fund or account in the State Treasury or
17   under the care, custody or control of a Commonwealth agency.
18   § 7402.    Training requirements.
19      (a)    Training.--A State fiduciary shall complete training in
20   fiduciary law, as provided in subsection (b).
21      (b)    Requirements.--
22             (1)   An individual who becomes a State fiduciary after
23      the effective date of this section shall complete:
24                   (i)    Two hours of training in fiduciary law within
25             one year of becoming a State fiduciary.
26                   (ii)    One hour of training in fiduciary law annually,
27             each year thereafter.
28             (2)   An individual who is a State fiduciary on the
29      effective date of this paragraph is exempt from the two-hour
30      initial training requirement under paragraph (1)(i). The

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 1      individual shall complete one hour of training in fiduciary
 2      law annually.
 3      (c)    Public School Employees' Retirement Board members.--
 4   Training completed in accordance with this section by an
 5   individual who is a member of the Public School Employees'
 6   Retirement Board, or a designee of a board member, may be
 7   applied toward the individual's board training requirement under
 8   24 Pa.C.S. § 8501(f) (relating to Public School Employees'
 9   Retirement Board) or Audit/Compliance Committee training
10   requirement under 24 Pa.C.S. § 8501(g), as applicable.
11      (d)    State Employees' Retirement Board members.--Training
12   completed under this section by an individual who is a member of
13   the State Employees' Retirement Board, or a designee of a board
14   member, may be applied toward the individual's board training
15   requirement under 71 Pa.C.S. § 5901(f) (relating to the State
16   Employees' Retirement Board) or Audit Risk and Compliance
17   Committee training requirement under 71 Pa.C.S. § 5901(g), as
18   applicable.
19   § 7403.    Content of training.
20      (a)    Initial training.--Initial training under section
21   7402(b)(1)(i) (relating to training requirements) shall, at a
22   minimum, cover the following concepts:
23             (1)   The definition of fiduciary.
24             (2)   Conflicts of interest.
25             (3)   The prudent expert standard.
26             (4)   Self-dealing.
27      (b)    Annual training.--Annual training under section 7402(b)
28   (1)(ii) shall, at a minimum, cover updates and case studies
29   related to the topics listed in subsection (a).
30   § 7404.    Legal fees.

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 1      (a)   Payment permitted.--Except as provided in subsection
 2   (b), a State fiduciary is entitled to have expenses reasonably
 3   incurred by the State fiduciary in defending a threatened,
 4   pending or completed legal action against the State fiduciary in
 5   the State fiduciary's capacity as a trustee, board member or
 6   other appointed or elected official of the Commonwealth agency
 7   or public pension system paid by the Commonwealth agency or
 8   public pension system, as applicable, during the individual's
 9   tenure and, after the State fiduciary's tenure, continuing
10   through the period of time established in any applicable statute
11   of limitations.
12      (b)   Payment prohibited.--Payment of expenses to a State
13   fiduciary under subsection (a) shall be prohibited if a court of
14   competent jurisdiction finds that the conduct of the State
15   fiduciary as alleged or proved in a legal action constituted a
16   criminal offense, willful misconduct or self-dealing.
17      Section 2.     This act shall take effect December 31, 2025, or
18   immediately, whichever is later.




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