PRINTER'S NO. 1346
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1051
Session of
2024
INTRODUCED BY HUTCHINSON, DUSH, ARGALL, AUMENT, PENNYCUICK,
GEBHARD, YAW, BAKER, J. WARD, BROOKS, ROTHMAN, BROWN AND
CULVER, JANUARY 29, 2024
REFERRED TO FINANCE, JANUARY 29, 2024
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in procedure and administration, further
providing for review by board and providing for settlement
conference process.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2704(d.7) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
and the section is amended by adding a subsection to read:
Section 2704. Review by board.
* * *
(a.1) Extension for filing petition.--Notwithstanding any
provision to the contrary, the date for filing a petition
required under this article with the board may be extended by
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
the board upon:
(1) written application for good cause shown; and
(2) a finding that granting the application will not
prejudice the other party.
* * *
[(d.7) Compromise settlement.--The board shall establish
procedures to facilitate the compromise settlement of issues on
appeal. A compromise settlement shall be ordered by the board
only with the agreement of both the petitioner and the
department. The provisions of section 2707(c) shall be
applicable to compromise settlements under this section.]
* * *
Section 2. The act is amended by adding a section to read:
Section 2704.1. Settlement conference process.
(a) Settlement officer.-- The board shall appoint one or more
individuals to serve as a settlement officer for a settlement
conference initiated under subsection (b), to whom the following
shall apply:
(1) A settlement officer may be either an employee of
the board or a third-party contractor retained by the board.
(2) A settlement officer:
(i) must be a citizen of the United States;
(ii) must be an attorney in good standing before the
Supreme Court of Pennsylvania or a certified public
accountant in good standing before the State Board of
Accountancy;
(iii) must have significant experience in a position
requiring substantial knowledge of Pennsylvania tax law;
and
(iv) may not be employed by the department, board or
20240SB1051PN1346 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the State Treasurer, other than in the capacity as a
settlement officer.
(3) A settlement officer shall:
(i) be fair and impartial and is not permitted to
preside over a settlement conference if the settlement
officer cannot conduct it in an impartial manner; and
(ii) disclose, as soon as practicable, all actual
and potential conflicts of interest that are reasonably
known to the settlement officer and could reasonably be
seen as raising a question about the officer's interest
in the outcome unless the petitioner and the department
consent in writing.
(4) The board may remove a settlement officer at its
sole discretion.
(5) The State Treasurer shall set the compensation for a
settlement officer.
(b) Request for settlement conference.--Notwithstanding
section 2704(f)(1), either party may submit a request for, or
the board may direct, a settlement conference to settle a
petition for review of a decision and order under the board's
jurisdiction. The request for a settlement conference shall be
submitted to the board, unless the settlement conference is
directed by the board, by filing a written request with the
petition or within 30 days of the petition being filed. The
board may allow settlement conferences after the deadline in the
exercise of discretion or upon application for good cause. The
following shall apply:
(1) The board may defer consideration of the petition
until after either party declines to participate in a
settlement conference or the settlement conference is deemed
20240SB1051PN1346 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
terminated under subsection (e). If the board defers
consideration of the petition, the board shall issue a
decision and order disposing of the petition within six
months of the party's refusal to participate in a settlement
conference or termination.
(2) The party requesting a settlement conference shall
simultaneously notify the other party or parties and the
board of the request, unless the board initiated the
settlement conference.
(3) A request for settlement must provide a brief
description of the dispute and the relief requested. The
nonrequesting party or parties must file a written response
with the board and provide a copy to the requesting party in
support of or opposition to the settlement conference within
10 business days of the requestor's submission.
(4) The board, within five business days of receipt of
the response in support of or opposition to the settlement
conference, shall notify the parties in writing whether the
board will refer an appeal to a settlement conference.
(5) A petitioner may decline to participate in a
settlement conference upon providing the board with written
notice of its intent not to participate within five business
days of receipt of notice of the referral.
(c) Settlement conference.--The following shall apply to a
settlement conference requested under subsection (b):
(1) A settlement conference shall be held no later than
60 days from the date the board refers a case for settlement
conference.
(2) The settlement officer shall set the date, time and
place for each conference. The parties shall respond to
20240SB1051PN1346 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
requests for conference dates in a timely manner, be
cooperative in scheduling the earliest practicable date and
adhere to the established conference schedule. The settlement
officer, in the exercise of discretion or upon application
for good cause, may reschedule a conference. The settlement
officer shall provide notice of the conference to the parties
in advance of the conference date.
(3) A settlement conference and related settlement
conference communications are private proceedings. A
representative of each party must attend each settlement
conference. A party is not required to attend each settlement
conference unless the party does not have representation.
Other individuals may attend a settlement conference only
with the permission of the parties and with the consent of
the settlement officer.
(4) A settlement conference may be conducted virtually
or in person.
(5) A settlement conference may not be recorded
electronically or in any other manner, regardless of the
consent of the parties.
(6) The following shall apply to representation at a
settlement conference:
(i) A party is not required to retain representation
for a settlement conference.
(ii) If a party retains representation, the party
may be represented at a settlement conference by any
individual of the party's choosing.
(iii) Each party must have a representative attend a
settlement conference who has the authority to consummate
a settlement, which shall include each party who has not
20240SB1051PN1346 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
retained representation.
(7) The settlement officer shall conduct the settlement
conference in an informal manner with the purpose of
facilitating a settlement between the petitioner and the
department. The settlement officer is authorized to conduct
separate or ex parte meetings and other communications with
the parties, and any representatives of the parties, before,
during and after any scheduled settlement conference.
(8) Prior to and during the scheduled settlement
conference the parties and their representatives shall, as
appropriate to each party's circumstances, exercise best
efforts to prepare for and engage in a meaningful and
productive settlement conference.
(9) The parties are encouraged to exchange all documents
pertinent to the relief requested. The settlement officer may
request the exchange of memoranda on issues, including the
underlying interests and the history of the parties'
negotiations. Information that a party wishes to keep
confidential may be sent to the settlement officer, as
necessary, in a separate communication with the settlement
officer.
(10) Confidential information disclosed to a settlement
officer by a party in the course of a settlement conference
shall not be divulged by the settlement officer. The
settlement officer shall maintain the confidentiality of all
information obtained in the settlement conference, and all
records, reports or other documents received by the
settlement officer while serving in that capacity shall be
confidential. The settlement officer shall be subject to the
provisions and penalties of section 731 of the act of April
20240SB1051PN1346 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
9, 1929 (P.L.343, No.176), known as The Fiscal Code.
(11) The settlement officer must return to each
respective party all documents containing confidential
information presented at the settlement conference within 30
days after the earlier of the date that the board accepts a
settlement, or the board mails its order deciding the case.
(12) A party must submit to the board any documents
intended to be used in support of the party's appeal. The
documents must be submitted in accordance with the rules and
procedures of the board for submitting additional evidence.
(13) The settlement officer shall not be compelled to
divulge confidential records or to testify in regard to the
settlement conference in any administrative, judicial or
other proceeding.
(14) A confidential or privileged document or other
record presented or included in a settlement conference is
exempt from access under the act of February 14, 2008 (P.L.6,
No.3), known as the Right-to-Know-Law.
(15) Each party to a settlement conference shall
maintain the confidentiality of the settlement conference and
shall not rely on or introduce as evidence in any
administrative, judicial or other proceeding the following,
unless agreed to by the parties or required by applicable
law:
(i) Views expressed or suggestions made by a party
or other participant with respect to a possible
settlement of the dispute.
(ii) Admissions made by a party or other participant
in the course of the settlement conference.
(iii) Proposals made or views expressed by the
20240SB1051PN1346 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
settlement officer.
(iv) The fact that a party had or had not indicated
willingness to accept a proposal for settlement made by
the settlement officer.
(16) A settlement officer is not a legal representative
of any party and has no fiduciary duty to any party.
(d) Post-settlement conference procedures.--
(1) The settlement officer shall evaluate the merits of
a dispute during the settlement conference. The evaluations
shall be communicated to each party privately or, if the
parties agree, to all parties jointly. Unless parties agree
otherwise, evaluations shall be communicated orally.
(2) The settlement officer does not have the authority
to impose a settlement on the parties. Subject to the
discretion of the settlement officer, the officer may make
oral or written recommendations for settlement to a party
privately or, if the parties agree, to all parties jointly.
(3) In the event a settlement of all or some of the
issues in dispute is not achieved within the scheduled
settlement conference, the settlement officer may continue to
communicate with the parties for a period of time not to
exceed 30 days from the date of the settlement conference,
during which time the parties agree to negotiate in earnest
in an ongoing effort to facilitate a complete settlement.
(4) If the parties to a settlement conference come to an
agreement, the parties shall present the terms of the
settlement to the board for approval in writing signed by all
parties within 10 business days after reaching the
settlement. The settlement agreement shall be approved by the
board if the board determines the agreement is not contrary
20240SB1051PN1346 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
to law.
(5) If the parties to a settlement conference cannot
reach a settlement of any or all of the issues, the board
shall proceed in accordance with the procedure specified in
this act and regulations.
(6) A settlement agreement shall not be considered as
precedent and cannot be appealed.
(e) Termination of a settlement conference.--The settlement
conference shall be terminated:
(1) by the board approving a settlement agreement by the
parties;
(2) by a written declaration by the settlement officer
that further efforts at a settlement conference would not
contribute to a resolution of the parties' dispute;
(3) by a written declaration of all parties that the
settlement conference is terminated; or
(4) when the settlement officer has represented in
writing to the board that there has been no communication
between the settlement officer and any party or party's
representative for 21 days following the conclusion of the
settlement conference.
(f) Exclusion of liability.--A settlement officer is not a
necessary or proper party in administrative, judicial or other
proceedings relating to the settlement conference.
Notwithstanding any provision of law to the contrary, parties to
a settlement conference under this section shall be deemed to
have consented that the settlement officer shall not be liable
to any party for any error, act or omission in connection with
any settlement conference conducted under this section. Parties
to a settlement conference under this section may not call a
20240SB1051PN1346 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
settlement officer as a witness in litigation or any other
proceeding relating to the settlement conference. The settlement
officer is not competent to testify as a witness in any
proceeding related to the settlement conference.
(g) Rules and regulations.--The board may adopt rules and
regulations necessary to effectuate this section.
(h) Laws not applicable.--The provisions of 2 Pa.C.S.
(relating to administrative law and procedure) shall not apply
to a settlement conference conducted under this section.
Section 3. This act shall take effect in 60 days.
20240SB1051PN1346 - 10 -
1
2
3
4
5
6
7
8
9
10