SENATE AMENDED
PRIOR PRINTER'S NOS. 382, 1624, 2106, PRINTER'S NO. 2964
2278, 2957
No. 353 Session of 1993
INTRODUCED BY LESCOVITZ, COLAIZZO, MARKOSEK, FAIRCHILD, MELIO,
PETRARCA, ARGALL, PESCI, MIHALICH, STAIRS, DALEY, STISH,
GODSHALL, CAPPABIANCA, PHILLIPS, CORRIGAN, FLICK, TRELLO,
GORDNER, GEIST, PRESTON, LEVDANSKY AND LAGROTTA,
FEBRUARY 10, 1993
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, DECEMBER 14, 1993
AN ACT
1 Providing for the payment of interest on purchases by political <--
2 subdivisions.
3 AMENDING THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), ENTITLED, <--
4 AS AMENDED, "AN ACT RELATING TO THE FINANCES OF THE STATE
5 GOVERNMENT; PROVIDING FOR THE SETTLEMENT, ASSESSMENT,
6 COLLECTION, AND LIEN OF TAXES, BONUS, AND ALL OTHER ACCOUNTS
7 DUE THE COMMONWEALTH, THE COLLECTION AND RECOVERY OF FEES AND
8 OTHER MONEY OR PROPERTY DUE OR BELONGING TO THE COMMONWEALTH,
9 OR ANY AGENCY THEREOF, INCLUDING ESCHEATED PROPERTY AND THE
10 PROCEEDS OF ITS SALE, THE CUSTODY AND DISBURSEMENT OR OTHER
11 DISPOSITION OF FUNDS AND SECURITIES BELONGING TO OR IN THE
12 POSSESSION OF THE COMMONWEALTH, AND THE SETTLEMENT OF CLAIMS
13 AGAINST THE COMMONWEALTH, THE RESETTLEMENT OF ACCOUNTS AND
14 APPEALS TO THE COURTS, REFUNDS OF MONEYS ERRONEOUSLY PAID TO
15 THE COMMONWEALTH, AUDITING THE ACCOUNTS OF THE COMMONWEALTH
16 AND ALL AGENCIES THEREOF, OF ALL PUBLIC OFFICERS COLLECTING
17 MONEYS PAYABLE TO THE COMMONWEALTH, OR ANY AGENCY THEREOF,
18 AND ALL RECEIPTS OF APPROPRIATIONS FROM THE COMMONWEALTH,
19 AUTHORIZING THE COMMONWEALTH TO ISSUE TAX ANTICIPATION NOTES
20 TO DEFRAY CURRENT EXPENSES, IMPLEMENTING THE PROVISIONS OF
21 SECTION 7(A) OF ARTICLE VIII OF THE CONSTITUTION OF
22 PENNSYLVANIA AUTHORIZING AND RESTRICTING THE INCURRING OF
23 CERTAIN DEBT AND IMPOSING PENALTIES; AFFECTING EVERY
24 DEPARTMENT, BOARD, COMMISSION, AND OFFICER OF THE STATE
25 GOVERNMENT, EVERY POLITICAL SUBDIVISION OF THE STATE, AND
26 CERTAIN OFFICERS OF SUCH SUBDIVISIONS, EVERY PERSON,
27 ASSOCIATION, AND CORPORATION REQUIRED TO PAY, ASSESS, OR
28 COLLECT TAXES, OR TO MAKE RETURNS OR REPORTS UNDER THE LAWS
29 IMPOSING TAXES FOR STATE PURPOSES, OR TO PAY LICENSE FEES OR
1 OTHER MONEYS TO THE COMMONWEALTH, OR ANY AGENCY THEREOF,
2 EVERY STATE DEPOSITORY AND EVERY DEBTOR OR CREDITOR OF THE
3 COMMONWEALTH," FURTHER PROVIDING FOR THE INVESTMENT OF MONEYS <--
4 OF THE COMMONWEALTH; AND ADDING PROVISIONS RELATING TO
5 POLITICAL SUBDIVISION PROCUREMENT INTEREST PAYMENTS. AND
6 RELATING TO ELECTRONIC FILING. FURTHER PROVIDING FOR
7 PENALTIES FOR FAILURE TO MAKE CERTAIN PAYMENTS BY ELECTRONIC
8 TRANSFER AND FOR FAILURE TO FILE RETURNS OR DOCUMENTS OR FOR
9 FILING FALSE OR FRAUDULENT RETURNS OR DOCUMENTS; ADDING AND
10 AMENDING CERTAIN DEFINITIONS; REGULATING ACTIVITIES REGARDING
11 UNCASHED COMMONWEALTH CHECKS AND ABANDONED AND UNCLAIMED
12 PROPERTY; PROVIDING FOR THE REVIVAL AND PRIORITY OF TAX
13 LIENS; PROVIDING FOR THE TIMELY FILING OF PETITIONS FOR
14 RESETTLEMENT, REDETERMINATION, REASSESSMENT OR SIMILAR
15 PETITIONS; ADDING PROVISIONS RELATING TO POLITICAL
16 SUBDIVISION PROCUREMENT INTEREST PAYMENTS; TRANSFERRING
17 CERTAIN POWERS FROM THE GOVERNOR TO THE SECRETARY OF THE
18 COMMONWEALTH; AND MAKING EDITORIAL CHANGES.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 Section 1. Short title. <--
22 This act shall be known and may be cited as the Political
23 Subdivision Procurement Interest Payment Act.
24 Section 2. Definitions.
25 The following words and phrases when used in this act shall
26 have the meanings given to them in this section unless the
27 context clearly indicates otherwise:
28 "Local authority." A municipal authority or any other body
29 corporate and politically created by one or more political
30 subdivisions pursuant to statute.
31 "Payment made." A payment shall be considered made on the
32 date on which a check for the payment is dated.
33 "Political subdivision." Any county, city, borough,
34 incorporated town, township, school district, vocational school
35 district, county institution district, local authority or any
36 joint or cooperative body of political subdivisions having the
37 power to enter into contracts.
38 "Proper invoice." An invoice which contains or is
19930H0353B2964 - 2 -
1 accompanied by substantiating documentation as the political
2 subdivision involved may require by regulation or contract.
3 "Qualified small business concern." Any independently owned
4 and operated for-profit business concern, including any person
5 engaged in a trade, employing 100 or fewer employees operating
6 as a contractor with a political subdivision.
7 "Received invoice." Any invoice received by a political
8 subdivision on the later of:
9 (1) the date on which the political subdivision's
10 designated payment office or finance center actually receives
11 a proper invoice; or
12 (2) the date on which the political subdivision accepts
13 the property or service concerned.
14 Section 3. Political subdivision interest payments.
15 (a) General rule.--
16 (1) In accordance with the provisions of paragraph (2),
17 each political subdivision which acquires property or
18 services from a qualified small business concern but which
19 does not make payment for each complete delivered item of
20 property or service by the required payment date shall pay an
21 interest penalty to the business concern in accordance with
22 this section on the amount of the payment which is due.
23 Unless a lower rate has been agreed to, the interest rate to
24 be assessed against any late payments shall be determined by
25 the Secretary of Revenue under subsection (b)(2), provided
26 that any qualified small business concern shall conspicuously
27 present a statement, on or with the invoice statement, that
28 it meets the definition of a qualified small business concern
29 contained in this act.
30 (2) All of the following conditions shall apply for the
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1 payment of interest by a political subdivision:
2 (i) The required payment date shall be:
3 (A) the date on which payment is due under the
4 terms of the contract for the provision of the
5 property or service; or
6 (B) thirty calendar days after receipt of a
7 proper invoice for the amount of the payment due, if
8 a specific date on which payment is due is not
9 established by contract.
10 (ii) Separate required payment dates for contracts
11 under which property or services are provided in a series
12 of partial executions or deliveries shall be established,
13 to the extent that the contract provides for separate
14 payment of the partial execution or delivery.
15 (iii) Prior to the date upon which payment without
16 an interest penalty is due, a political subdivision shall
17 notify the qualified small business concern of any defect
18 in goods and services or impropriety in the invoice which
19 would prevent the running of the time periods specified
20 in this paragraph.
21 (b) Due date of payment.--
22 (1) Interest penalties payable on amounts due to a
23 qualified small business concern under this act shall be paid
24 to the business concern for the period beginning on the day
25 after the required payment date and ending on the date on
26 which payment on the amount due is made except no interest
27 penalty shall be paid if payment for the complete delivered
28 item of property or service concerned is made on or before
29 the 15th calendar day after the required payment date.
30 (2) Interest shall be computed at the rate determined by
19930H0353B2964 - 4 -
1 the Secretary of Revenue for interest payments on overdue
2 taxes or the refund of taxes as provided in sections 806 and
3 806.1 of the act of April 9, 1929 (P.L.343, No.176), known as
4 The Fiscal Code, and any subsequent amendments to those
5 sections.
6 (3) Interest may be paid by separate payment made to a
7 qualified small business concern within 30 days of payment of
8 the original invoice.
9 (4) Any amount of an interest penalty imposed because of
10 a debt which remains unpaid at the end of any 30-day period
11 shall be added to the principle amount of the debt and
12 thereafter interest penalties shall accrue on the added
13 amount.
14 (c) Funds for interest payment.--A political subdivision
15 shall pay any interest penalties required by this act out of
16 funds made available for the administration or operation of the
17 program for which the penalty was incurred, or from general
18 administrative funds of the political subdivision. Nothing in
19 this act shall be construed to require payment of interest
20 penalties from Federal or State funds if the payment is
21 prohibited by Federal or State law or regulation.
22 (d) Claims.--Claims for interest penalties which a political
23 subdivision has failed to pay in accordance with the
24 requirements of this act shall be made in a formal civil action
25 against the offending political subdivision following the
26 exhaustion of all contractual remedies.
27 (e) Disputes.--This act shall not be construed to require
28 interest penalties on payments which are not made by the
29 required payment date by reason of a dispute between a political
30 subdivision and a qualified small business concern over the
19930H0353B2964 - 5 -
1 amount of that payment or other allegations concerning
2 compliance with a contract.
3 Section 4. Exception.
4 Section 3 shall not apply when the political subdivision's
5 nonpayment on a particular project is caused by failure of the
6 Federal or State government to pay funds designated for the
7 specific project. Nothing in this act shall be construed to
8 require payment of interest penalties by the Federal or State
9 government.
10 Section 5. Nonapplication of act.
11 This act shall not apply to any of the following:
12 (1) "Public contracts" subject to the act of November
13 26, 1978 (P.L.1309, No.317), referred to as the Public Works
14 Contract Regulation Law.
15 (2) A municipality determined to be distressed under the
16 act of July 10, 1987 (P.L.246, No.47), known as the
17 Municipalities Financial Recovery Act.
18 (3) A school district which has been determined to be a
19 distressed school district under section 691 of the act of
20 March 10, 1949 (P.L.30, No.14), known as the Public School
21 Code of 1949.
22 Section 6. Applicability.
23 This act shall apply to all contracts entered into on or
24 after July 1, 1993.
25 Section 7. Effective date.
26 This act shall take effect in 180 days.
27 SECTION 1. THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN <--
28 AS THE FISCAL CODE, IS AMENDED BY ADDING SECTIONS TO READ:
29 SECTION 9.1. FAILURE TO MAKE PAYMENT BY ELECTRONIC FUND
30 TRANSFER.--ANY PERSON WHO FAILS TO MAKE A REQUIRED PAYMENT BY A
19930H0353B2964 - 6 -
1 METHOD PRESCRIBED BY SECTION 9 SHALL, IN ADDITION TO ANY OTHER
2 PENALTY, INTEREST OR ADDITION PROVIDED BY LAW, BE LIABLE FOR A
3 PENALTY OF THREE PER CENTUM OF THE TOTAL TAX DUE NOT TO EXCEED
4 FIVE HUNDRED DOLLARS ($500).
5 SECTION 202.1. METHOD OF FILING.--NOTWITHSTANDING ANY <--
6 PROVISIONS OF LAW, THE DEPARTMENT MAY REQUIRE OR ALLOW THE
7 ELECTRONIC FILING OF ANY TAX RETURN OR DOCUMENT.
8 SECTION 202.1. METHOD OF FILING.--NOTWITHSTANDING ANY <--
9 PROVISIONS OF LAW, THE DEPARTMENT MAY ALLOW THE ELECTRONIC
10 FILING OF ANY TAX RETURN OR DOCUMENT.
11 SECTION 214. FAILURE TO FILE.--(A) ANY INDIVIDUAL, PERSON
12 OR ENTITY REQUIRED BY LAW OR REGULATION TO FURNISH ANY RETURN OR
13 OTHER DOCUMENT TO THE DEPARTMENT OF REVENUE WHO FURNISHES A
14 FALSE OR FRAUDULENT RETURN OR WHO FAILS TO FILE A RETURN OR
15 OTHER DOCUMENT IN THE MANNER AND AT THE TIME REQUIRED SHALL, IN
16 ADDITION TO ANY OTHER PENALTY PROVIDED BY LAW, BE LIABLE FOR A
17 PENALTY OF FIFTY DOLLARS ($50.00) FOR EACH FAILURE TO FILE OR
18 FOR EACH FRAUDULENT FILING.
19 (B) IF ANY PERSON LIABLE TO PAY A PENALTY UNDER THIS SECTION
20 NEGLECTS OR REFUSES TO PAY THE PENALTY AFTER DEMAND, THE AMOUNT
21 OF THE PENALTY TOGETHER WITH ANY COSTS SHALL BE A LIEN IN FAVOR
22 OF THE COMMONWEALTH UPON BOTH THE REAL AND PERSONAL PROPERTY OF
23 THAT PERSON. THE DEPARTMENT MAY, AT ANY TIME, TRANSMIT, TO THE
24 PROTHONOTARIES OF THE RESPECTIVE COUNTIES, CERTIFIED COPIES OF
25 ALL LIENS FOR PENALTIES IMPOSED BY THIS SECTION. IT SHALL BE THE
26 DUTY OF EACH PROTHONOTARY RECEIVING THE LIEN TO ENTER AND DOCKET
27 THE SAME OF RECORD IN HIS OFFICE. THE LIEN SHALL BE INDEXED IN
28 THE SAME MANNER AS JUDGMENTS ARE INDEXED.
29 SECTION 2. THE DEFINITION OF "BASIC COST OF CIGARETTES" IN <--
30 SECTION 202-A OF THE ACT, ADDED JULY 2, 1993 (P.L.250, NO.46),
19930H0353B2964 - 7 -
1 IS AMENDED TO READ:
2 SECTION 202-A. DEFINITIONS.--AS USED IN THIS ARTICLE--
3 "BASIC COST OF CIGARETTES" SHALL MEAN THE [INVOICE COST OF
4 CIGARETTES TO THE DEALER, OR THE REPLACEMENT COST OF CIGARETTES
5 TO THE DEALER, WITHIN THIRTY DAYS PRIOR TO THE DATE OF SALE IN
6 THE QUANTITY LAST PURCHASED, WHICHEVER IS LOWER, LESS ALL TRADE
7 DISCOUNTS AND CUSTOMARY DISCOUNTS FOR CASH, BUT EXCLUDING ANY
8 SPECIAL, EXTRAORDINARY OR ANTICIPATORY DISCOUNTS FOR PAYMENT
9 WITHIN A SHORTER PERIOD OF TIME THAN THE CUSTOMARY DISCOUNTS FOR
10 CASH,] MANUFACTURER'S LIST PRICE TO WHICH SHALL BE ADDED THE
11 FULL FACE VALUE OF ANY TAX WHICH MAY BE REQUIRED BY LAW, IF NOT
12 ALREADY INCLUDED IN THE MANUFACTURER'S LIST PRICE.
13 MANUFACTURER'S LIST PRICE SHALL MEAN THE GROSS PRICE OF THE
14 CIGARETTES FROM THE MANUFACTURER TO THE DEALER IN THE QUANTITIES
15 STATED AND SHALL INCLUDE ANY FEDERAL TAX, FREIGHT OR HANDLING
16 CHARGES, IF NOT ALREADY INCLUDED.
17 * * *
18 SECTION 3. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:
19 SECTION 308.1. LISTS OF UNCASHED COMMONWEALTH CHECKS.--(A)
20 ANY UNCASHED CHECK OR RECORD OF ANY SUCH CHECK ISSUED BY THE
21 STATE TREASURER FROM FUNDS OF THE COMMONWEALTH, WHICH IS
22 UNCASHED WITHIN THE TIME PERIOD SPECIFIED ON THE FACE OF THE
23 CHECK, SHALL NOT BE AVAILABLE FOR EXAMINATION, INSPECTION OR
24 COPYING BY ANY PERSON WITHIN TWENTY-FOUR MONTHS FROM THE DATE
25 THE TREASURY DEPARTMENT BECOMES AWARE THAT SUCH CHECK IS
26 UNCASHED. AFTER THE TWENTY-FOUR-MONTH TIME PERIOD PROVIDED FOR
27 IN THIS SECTION, THE STATE TREASURER SHALL MAKE A LIST OF
28 UNCASHED CHECKS AVAILABLE FOR EXAMINATION, INSPECTION OR COPYING
29 AT FEES TO BE DETERMINED BY THE STATE TREASURER.
30 (B) ALL AGREEMENTS OR POWERS OF ATTORNEY ENTERED INTO TO
19930H0353B2964 - 8 -
1 RECOVER THE AMOUNT PAYABLE ON THE UNCASHED CHECK WITHIN THE
2 TWENTY-FOUR-MONTH PERIOD SET FORTH IN SUBSECTION (A) SHALL BE
3 VOID.
4 (C) ALL SUCH AGREEMENTS ENTERED INTO AFTER THE TWENTY-FOUR-
5 MONTH PERIOD SHALL BE VALID AND ENFORCEABLE ONLY IF THE
6 AGREEMENTS:
7 1. ARE IN WRITING AND DULY SIGNED AND ACKNOWLEDGED BY THE
8 PAYEE DESIGNATED ON THE UNCASHED CHECK OR RECORD;
9 2. CLEARLY STATE THE FEE OR COMPENSATION TO BE PAID, WHICH
10 SHALL NOT EXCEED TEN PER CENTUM OF THE VALUE OF THE UNCASHED
11 CHECK;
12 3. DISCLOSE THE CHECK NUMBER, PAY DATE AND AMOUNT PAYABLE OF
13 UNCASHED CHECK; AND
14 4. DISCLOSE THAT THE STATE TREASURER IS THE PERSON WHO WILL
15 BE CONTACTED TO RECOVER THE AMOUNT PAYABLE.
16 (D) SUBSECTION (B) SHALL NOT APPLY TO ANY AGREEMENT OR POWER
17 OF ATTORNEY ENTERED INTO BETWEEN THE PERSONAL REPRESENTATIVE,
18 GUARDIAN, TRUSTEE OR OTHER PERSON IN A REPRESENTATIVE CAPACITY
19 TO THE OWNER OF THE PROPERTY IN WHICH SUCH PERSON HAS AN
20 INTEREST FOR A FIXED FEE OR HOURLY OR DAILY RATE, NOT CONTINGENT
21 UPON THE DISCOVERY OF PROPERTY OR THE VALUE OF PROPERTY
22 DISCOVERED: PROVIDED, HOWEVER, THAT ANY SUCH AGREEMENT UNDER
23 THIS SUBSECTION FOR THE PURPOSE OF EVADING THE PROVISIONS OF
24 SUBSECTION (B) SHALL BE VOID.
25 (E) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PREVENT AN
26 OWNER FROM ASSERTING, AT ANY TIME, THAT ANY AGREEMENT TO LOCATE
27 OR REVEAL ABANDONED AND UNCLAIMED PROPERTY REPORTED TO THE STATE
28 TREASURER IS BASED ON AN EXCESSIVE OR UNJUST CONSIDERATION.
29 (F) TO THE MAXIMUM EXTENT FEASIBLE, THE STATE TREASURER
30 SHALL BE ENTITLED TO REQUEST AND RECEIVE AND SHALL UTILIZE AND
19930H0353B2964 - 9 -
1 BE PROVIDED WITH SUCH FACILITIES, RESOURCES AND DATA OF ANY
2 COURT, DEPARTMENT, DIVISION, BOARD, BUREAU, COMMISSION OR AGENCY
3 OF THE COMMONWEALTH OR ANY POLITICAL SUBDIVISION THEREOF AS IT
4 MAY REASONABLY REQUEST TO CARRY OUT PROPERLY ITS POWERS AND
5 DUTIES HEREUNDER.
6 SECTION 1102.1. TIMELY FILING.--A TAXPAYER SHALL BE DEEMED
7 TO HAVE TIMELY FILED A PETITION FOR RESETTLEMENT, A PETITION FOR
8 REASSESSMENT, A PETITION FOR REDETERMINATION, OR ANY OTHER
9 PROTEST RELATING TO THE ASSESSMENT OF TAX OR ANY OTHER MATTER
10 RELATING TO ANY TAX IMPOSED BY THE ACT OF MARCH 4, 1971 (P.L.6,
11 NO.2), KNOWN AS THE "TAX REFORM CODE OF 1971," IF THE LETTER
12 TRANSMITTING THE PETITION IS RECEIVED BY THE DEPARTMENT OF
13 REVENUE OR IS POSTMARKED BY THE UNITED STATES POSTAL SERVICE ON
14 OR PRIOR TO THE FINAL DAY ON WHICH THE PETITION IS TO BE
15 RECEIVED.
16 SECTION 2 4. SECTION 1301.11 OF THE ACT IS AMENDED BY ADDING <--
17 SUBSECTIONS TO READ:
18 SECTION 1301.11. REPORT OF PROPERTY SUBJECT TO CUSTODY AND
19 CONTROL OF THE COMMONWEALTH UNDER THIS ARTICLE.--* * *
20 (F) SUBSEQUENT TO THE FILING OF THE REPORTS REQUIRED BY THIS
21 SECTION, THE STATE TREASURER SHALL COMPILE A LIST OF THE
22 ABANDONED AND UNCLAIMED PROPERTY CONTAINED IN THE REPORTS. THE
23 LISTING SHALL CONTAIN ONLY THE NAMES AND LAST KNOWN ADDRESSES,
24 IF ANY, OF THE OWNERS LISTED IN THE REPORTS. THE LISTING SHALL
25 NOT BE AVAILABLE TO ANY PERSON FOR EXAMINATION, INSPECTION OR
26 COPYING PRIOR TO TWENTY-FOUR MONTHS AFTER THE REPORTS HAVE BEEN
27 FILED WITH OR PAYMENT OR DELIVERY OF THE PROPERTY HAS BEEN MADE
28 TO THE STATE TREASURER. AFTER THE TWENTY-FOUR-MONTH PERIOD
29 PROVIDED FOR IN THIS SECTION, THE STATE TREASURER SHALL MAKE THE
30 LISTING AVAILABLE FOR EXAMINATION, INSPECTION OR COPYING AT FEES
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1 TO BE DETERMINED BY THE STATE TREASURER.
2 (G) ALL AGREEMENTS OR POWERS OF ATTORNEY TO RECOVER OR
3 COLLECT ABANDONED AND UNCLAIMED PROPERTY CONTAINED IN THE
4 REPORTS FILED UNDER THIS ARTICLE WHICH ARE MADE WITHIN TWENTY-
5 FOUR MONTHS AFTER THE DATE THAT THE REPORTS HAVE BEEN FILED WITH
6 THE STATE TREASURER SHALL BE VOID.
7 (H) ALL SUCH AGREEMENTS ENTERED INTO AFTER THE TWENTY-FOUR-
8 MONTH PERIOD SHALL BE VALID AND ENFORCEABLE ONLY IF THE
9 AGREEMENTS:
10 1. ARE IN WRITING AND DULY SIGNED AND ACKNOWLEDGED BY THE
11 OWNER;
12 2. CLEARLY STATE THE FEE OR COMPENSATION TO BE PAID, WHICH
13 SHALL NOT EXCEED TEN PER CENTUM OF THE VALUE OF THE ABANDONED
14 AND UNCLAIMED PROPERTY;
15 3. DISCLOSE THE NATURE AND VALUE OF THE PROPERTY; AND
16 4. DISCLOSE THE NAME AND ADDRESS OF THE HOLDER, AND, IF
17 KNOWN, WHETHER THE ABANDONED AND UNCLAIMED PROPERTY HAS BEEN
18 PAID OR DELIVERED TO THE STATE TREASURER.
19 (I) SUBSECTION (G) SHALL NOT APPLY TO ANY AGREEMENT OR POWER
20 OF ATTORNEY ENTERED INTO BETWEEN THE PERSONAL REPRESENTATIVE,
21 GUARDIAN, TRUSTEE OR OTHER PERSON IN A REPRESENTATIVE CAPACITY
22 TO THE OWNER OF THE PROPERTY IN WHICH SUCH PERSON HAS AN
23 INTEREST FOR A FIXED FEE OR HOURLY OR DAILY RATE, NOT CONTINGENT
24 UPON THE DISCOVERY OF PROPERTY OR THE VALUE OF PROPERTY
25 DISCOVERED: PROVIDED, HOWEVER, THAT ANY SUCH AGREEMENT UNDER
26 THIS SUBSECTION FOR THE PURPOSE OF EVADING THE PROVISIONS OF
27 SUBSECTION (G) SHALL BE VOID.
28 (J) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PREVENT AN
29 OWNER FROM ASSERTING, AT ANY TIME, THAT ANY AGREEMENT TO LOCATE
30 OR REVEAL ABANDONED AND UNCLAIMED PROPERTY REPORTED TO THE STATE
19930H0353B2964 - 11 -
1 TREASURER IS BASED ON AN EXCESSIVE OR UNJUST CONSIDERATION.
2 (K) TO THE MAXIMUM EXTENT FEASIBLE, THE STATE TREASURER
3 SHALL BE ENTITLED TO REQUEST AND RECEIVE AND SHALL UTILIZE AND
4 BE PROVIDED WITH SUCH FACILITIES, RESOURCES AND DATA OF ANY
5 COURT, DEPARTMENT, DIVISION, BOARD, BUREAU, COMMISSION OR AGENCY
6 OF THE COMMONWEALTH OR ANY POLITICAL SUBDIVISION THEREOF AS IT
7 MAY REASONABLY REQUEST TO CARRY OUT PROPERLY ITS POWERS AND
8 DUTIES HEREUNDER.
9 SECTION 3 5. THE ACT IS AMENDED BY ADDING A SECTION TO READ: <--
10 SECTION 1404.1. AUTOMATIC REVIVAL AND PRIORITY OF TAX
11 LIENS.--ALL TAX LIENS REQUIRED TO BE FILED BY THE DEPARTMENT OF
12 REVENUE SHALL CONTINUE AND SHALL RETAIN THEIR PRIORITY WITHOUT
13 THE NECESSITY OF REFILING OR REVIVAL. ALL TAX LIENS SHALL HAVE
14 PRIORITY TO, AND BE FULLY PAID BEFORE, ANY OTHER OBLIGATION,
15 JUDGMENT, CLAIM, LIEN OR ESTATE PAID AND SATISFIED OUT OF THE
16 JUDICIAL SALE OF THE REAL AND PERSONAL PROPERTY WITH WHICH THAT
17 PROPERTY MAY SUBSEQUENTLY BECOME CHARGED, OR FOR WHICH THAT
18 PROPERTY MAY SUBSEQUENTLY BECOME LIABLE, SUBJECT, HOWEVER, TO
19 MORTGAGE OR OTHER LIENS EXISTING AND DULY RECORDED AT THE TIME
20 THE TAX LIEN IS RECORDED, EXCEPT FOR THE COST OF SALE AND THE
21 WRIT UPON WHICH THE SALE IS MADE AND REAL ESTATE TAXES IMPOSED
22 OR ASSESSED UPON THAT PROPERTY.
23 SECTION 4 6. THE ACT IS AMENDED BY ADDING AN ARTICLE TO <--
24 READ:
25 ARTICLE XVI-C
26 POLITICAL SUBDIVISION PROCUREMENT INTEREST PAYMENTS
27 SECTION 1601-C. SHORT TITLE.--THIS ARTICLE SHALL BE KNOWN
28 AND MAY BE CITED AS THE "POLITICAL SUBDIVISION PROCUREMENT
29 INTEREST PAYMENT ACT."
30 SECTION 1602-C. DEFINITIONS.--AS USED IN THIS ARTICLE--
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1 "LOCAL AUTHORITY" SHALL MEAN A MUNICIPAL AUTHORITY OR ANY
2 OTHER BODY CORPORATE AND POLITICALLY POLITIC CREATED BY ONE (1) <--
3 OR MORE POLITICAL SUBDIVISIONS PURSUANT TO STATUTE.
4 "POLITICAL SUBDIVISION" SHALL MEAN ANY COUNTY, CITY, BOROUGH,
5 INCORPORATED TOWN, TOWNSHIP, SCHOOL DISTRICT, VOCATIONAL SCHOOL
6 DISTRICT, COUNTY INSTITUTION DISTRICT, LOCAL AUTHORITY OR ANY
7 JOINT OR COOPERATIVE BODY OF POLITICAL SUBDIVISIONS HAVING THE
8 POWER TO ENTER INTO CONTRACTS.
9 "PROPER INVOICE" SHALL MEAN AN INVOICE WHICH CONTAINS OR IS
10 ACCOMPANIED BY SUBSTANTIATING DOCUMENTATION AS THE POLITICAL
11 SUBDIVISION INVOLVED MAY REQUIRE BY REGULATION OR CONTRACT.
12 "QUALIFIED SMALL BUSINESS CONCERN" SHALL MEAN ANY
13 INDEPENDENTLY OWNED AND OPERATED FOR-PROFIT BUSINESS CONCERN,
14 INCLUDING ANY PERSON ENGAGED IN A TRADE, EMPLOYING ONE HUNDRED
15 OR FEWER EMPLOYES OPERATING AS A CONTRACTOR WITH A POLITICAL
16 SUBDIVISION.
17 "RECEIVED INVOICE" SHALL MEAN ANY INVOICE RECEIVED BY A
18 POLITICAL SUBDIVISION ON THE LATER OF:
19 1. THE DATE ON WHICH THE POLITICAL SUBDIVISION'S DESIGNATED
20 PAYMENT OFFICE OR FINANCE CENTER ACTUALLY RECEIVES A PROPER
21 INVOICE; OR
22 2. THE DATE ON WHICH THE POLITICAL SUBDIVISION ACCEPTS THE
23 PROPERTY OR SERVICE CONCERNED.
24 SECTION 1603-C. POLITICAL SUBDIVISION INTEREST PAYMENTS.--
25 (A) IN ACCORDANCE WITH SECTION 1604-C, EACH POLITICAL
26 SUBDIVISION WHICH ACQUIRES PROPERTY OR SERVICES FROM A QUALIFIED
27 SMALL BUSINESS CONCERN BUT WHICH DOES NOT MAKE PAYMENT FOR EACH
28 COMPLETE DELIVERED ITEM OF PROPERTY OR SERVICE BY THE REQUIRED
29 PAYMENT DATE SHALL PAY AN INTEREST PENALTY TO THE BUSINESS
30 CONCERN IN ACCORDANCE WITH THIS SECTION ON THE AMOUNT OF THE
19930H0353B2964 - 13 -
1 PAYMENT WHICH IS DUE. UNLESS A LOWER RATE HAS BEEN AGREED TO,
2 THE INTEREST RATE TO BE ASSESSED AGAINST ANY LATE PAYMENTS SHALL
3 BE DETERMINED BY THE SECRETARY OF REVENUE UNDER SECTION 1605-
4 C(B): PROVIDED, THAT ANY QUALIFIED SMALL BUSINESS CONCERN SHALL
5 CONSPICUOUSLY PRESENT A STATEMENT, ON OR WITH THE INVOICE
6 STATEMENT, THAT IT MEETS THE DEFINITION OF A QUALIFIED SMALL
7 BUSINESS CONCERN CONTAINED IN THIS ARTICLE.
8 (B) A PAYMENT SHALL BE CONSIDERED MADE ON THE DATE ON WHICH
9 A CHECK FOR THE PAYMENT IS DATED.
10 SECTION 1604-C. CONDITION FOR INTEREST PAYMENTS.--ALL OF THE
11 FOLLOWING CONDITIONS SHALL APPLY FOR THE PAYMENT OF INTEREST BY
12 A POLITICAL SUBDIVISION:
13 (A) THE REQUIRED PAYMENT DATE SHALL BE:
14 1. THE DATE ON WHICH PAYMENT IS DUE UNDER THE TERMS OF THE
15 CONTRACT FOR THE PROVISION OF THE PROPERTY OR SERVICE; OR
16 2. THIRTY CALENDAR DAYS AFTER RECEIPT OF A PROPER INVOICE
17 FOR THE AMOUNT OF THE PAYMENT DUE, IF A SPECIFIC DATE ON WHICH
18 PAYMENT IS DUE IS NOT ESTABLISHED BY CONTRACT.
19 (B) SEPARATE REQUIRED PAYMENT DATES FOR CONTRACTS UNDER
20 WHICH PROPERTY OR SERVICES ARE PROVIDED IN A SERIES OF PARTIAL
21 EXECUTIONS OR DELIVERIES SHALL BE ESTABLISHED, TO THE EXTENT
22 THAT THE CONTRACT PROVIDES FOR SEPARATE PAYMENT OF THE PARTIAL
23 EXECUTION OR DELIVERY.
24 (C) PRIOR TO THE DATE UPON WHICH PAYMENT WITHOUT AN INTEREST
25 PENALTY IS DUE, A POLITICAL SUBDIVISION SHALL NOTIFY THE
26 QUALIFIED SMALL BUSINESS CONCERN OF ANY DEFECT IN GOODS AND
27 SERVICES OR IMPROPRIETY IN THE INVOICE WHICH WOULD PREVENT THE
28 RUNNING OF THE TIME PERIODS SPECIFIED IN THIS PARAGRAPH.
29 SECTION 1605-C. DUE DATE OF PAYMENT.--(A) INTEREST
30 PENALTIES PAYABLE ON AMOUNTS DUE TO A QUALIFIED SMALL BUSINESS
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1 CONCERN UNDER THIS ARTICLE SHALL BE PAID TO THE BUSINESS CONCERN
2 FOR THE PERIOD BEGINNING ON THE DAY AFTER THE REQUIRED PAYMENT
3 DATE AND ENDING ON THE DATE ON WHICH PAYMENT ON THE AMOUNT DUE
4 IS MADE EXCEPT NO INTEREST PENALTY SHALL BE PAID IF PAYMENT FOR
5 THE COMPLETE DELIVERED ITEM OF PROPERTY OR SERVICE CONCERNED IS
6 MADE ON OR BEFORE THE 15TH CALENDAR DAY AFTER THE REQUIRED
7 PAYMENT DATE.
8 (B) INTEREST SHALL BE COMPUTED AT THE RATE DETERMINED BY THE
9 SECRETARY OF REVENUE FOR INTEREST PAYMENTS ON OVERDUE TAXES OR
10 THE REFUND OF TAXES AS PROVIDED IN SECTIONS 806 AND 806.1 AND
11 ANY SUBSEQUENT AMENDMENTS TO THOSE SECTIONS.
12 (C) INTEREST MAY BE PAID BY SEPARATE PAYMENT MADE TO A
13 QUALIFIED SMALL BUSINESS CONCERN WITHIN THIRTY DAYS OF PAYMENT
14 OF THE ORIGINAL INVOICE.
15 (D) ANY AMOUNT OF AN INTEREST PENALTY IMPOSED BECAUSE OF A
16 DEBT WHICH REMAINS UNPAID AT THE END OF ANY THIRTY-DAY PERIOD
17 SHALL BE ADDED TO THE PRINCIPLE PRINCIPAL AMOUNT OF THE DEBT AND <--
18 THEREAFTER INTEREST PENALTIES SHALL ACCRUE ON THE ADDED AMOUNT.
19 SECTION 1606-C. FUNDS FOR INTEREST PAYMENT.--A POLITICAL
20 SUBDIVISION SHALL PAY ANY INTEREST PENALTIES REQUIRED BY THIS
21 ARTICLE OUT OF FUNDS MADE AVAILABLE FOR THE ADMINISTRATION OR
22 OPERATION OF THE PROGRAM FOR WHICH THE PENALTY WAS INCURRED, OR
23 FROM GENERAL ADMINISTRATIVE FUNDS OF THE POLITICAL SUBDIVISION.
24 NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO REQUIRE PAYMENT OF
25 INTEREST PENALTIES FROM FEDERAL OR STATE FUNDS IF THE PAYMENT IS
26 PROHIBITED BY FEDERAL OR STATE LAW OR REGULATION.
27 SECTION 1607-C. CLAIMS.--CLAIMS FOR INTEREST PENALTIES WHICH
28 A POLITICAL SUBDIVISION HAS FAILED TO PAY IN ACCORDANCE WITH
29 THIS ARTICLE SHALL BE MADE IN A FORMAL CIVIL ACTION AGAINST THE
30 OFFENDING POLITICAL SUBDIVISION FOLLOWING THE EXHAUSTION OF ALL
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1 CONTRACTUAL REMEDIES.
2 SECTION 1608-C. DISPUTES.--THIS ARTICLE SHALL NOT BE
3 CONSTRUED TO REQUIRE INTEREST PENALTIES ON PAYMENTS WHICH ARE
4 NOT MADE BY THE REQUIRED PAYMENT DATE BY REASON OF A DISPUTE
5 BETWEEN A POLITICAL SUBDIVISION AND A QUALIFIED SMALL BUSINESS
6 CONCERN OVER THE AMOUNT OF THAT PAYMENT OR OTHER ALLEGATIONS
7 CONCERNING COMPLIANCE WITH A CONTRACT.
8 SECTION 1609-C. EXCEPTION.--THIS ARTICLE SHALL NOT APPLY
9 WHEN THE POLITICAL SUBDIVISION'S NONPAYMENT ON A PARTICULAR
10 PROJECT IS CAUSED BY FAILURE OF THE FEDERAL OR STATE GOVERNMENT
11 TO PAY FUNDS DESIGNATED FOR THE SPECIFIC PROJECT. NOTHING IN
12 THIS ARTICLE SHALL BE CONSTRUED TO REQUIRE PAYMENT OF INTEREST
13 PENALTIES BY THE FEDERAL OR STATE GOVERNMENT.
14 SECTION 1610-C. NONAPPLICATION OF ARTICLE.--THIS ARTICLE
15 SHALL NOT APPLY TO ANY OF THE FOLLOWING:
16 1. "PUBLIC CONTRACTS" SUBJECT TO THE ACT OF NOVEMBER 26,
17 1978 (P.L.1309, NO.317), REFERRED TO AS THE "PUBLIC WORKS
18 CONTRACT REGULATION LAW."
19 2. A MUNICIPALITY DETERMINED TO BE DISTRESSED UNDER THE ACT
20 OF JULY 10, 1987 (P.L.246, NO.47), KNOWN AS THE "MUNICIPALITIES
21 FINANCIAL RECOVERY ACT."
22 3. A SCHOOL DISTRICT WHICH HAS BEEN DETERMINED TO BE A
23 DISTRESSED SCHOOL DISTRICT UNDER SECTION 691 OF THE ACT OF MARCH
24 10, 1949 (P.L.30, NO.14), KNOWN AS THE "PUBLIC SCHOOL CODE OF
25 1949."
26 4. A CITY OF THE FIRST CLASS THAT HAS ENTERED INTO THE
27 INTERGOVERNMENTAL COOPERATION AGREEMENT UNDER THE ACT OF JUNE 5,
28 1991 (P.L.9, NO.6), KNOWN AS THE "PENNSYLVANIA INTERGOVERNMENTAL
29 COOPERATION AUTHORITY ACT FOR CITIES OF THE FIRST CLASS," FOR <--
30 WHICH THAT CITY OF THE FIRST CLASS IS REQUIRED TO MAKE CERTAIN
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1 PAYMENTS TO THE PENNSYLVANIA INTERGOVERNMENTAL COOPERATION
2 AUTHORITY FOR SO LONG AS ANY DEFICIT-REDUCING BONDS ISSUED BY
3 THE AUTHORITY PURSUANT TO SECTION 301(B)(1) OF THAT ACT ARE
4 OUTSTANDING AND PAYABLE.
5 5. ANY CORPORATE ENTITY OR SCHOOL DISTRICT AS DEFINED IN THE
6 "PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY ACT FOR
7 CITIES OF THE FIRST CLASS."
8 SECTION 1611-C. APPLICABILITY.--THIS ARTICLE SHALL APPLY TO
9 ALL CONTRACTS ENTERED INTO ON OR AFTER THE EFFECTIVE DATE OF
10 ARTICLE XVI-C OF THIS ACT.
11 SECTION 5 7. SECTION 1704 OF THE ACT, AMENDED FEBRUARY 2, <--
12 1937 (P.L.3, NO.1), IS AMENDED TO READ:
13 SECTION 1704. INTENTIONAL FAILURE OF CORPORATE OFFICERS TO
14 MAKE REPORTS.--(A) IF ANY OFFICER OR OFFICERS OF ANY
15 CORPORATION OR ASSOCIATION SHALL INTENTIONALLY HAVE NEGLECTED OR
16 REFUSED TO MAKE REPORTS TO THE AUDITOR GENERAL, OR TO THE
17 DEPARTMENT OF REVENUE, OR SUCCESSIVELY TO THE AUDITOR GENERAL
18 AND TO THE DEPARTMENT OF REVENUE, AS REQUIRED BY LAW, FOR ANY
19 TWO SUCCESSIVE TAX YEARS, HE OR THEY SHALL BE GUILTY OF A
20 MISDEMEANOR, AND, ON CONVICTION THEREOF, SHALL BE SENTENCED TO
21 PAY A FINE OF FIVE HUNDRED DOLLARS, AND UNDERGO AN IMPRISONMENT
22 NOT EXCEEDING ONE YEAR, OR EITHER, AT THE DISCRETION OF THE
23 COURT.
24 (B) IF ANY OFFICER OR OFFICERS OF ANY CORPORATION OR
25 ASSOCIATION SHALL HAVE NEGLECTED OR REFUSED TO MAKE REPORTS TO
26 THE DEPARTMENT OF REVENUE FOR THREE SUCCESSIVE YEARS, UNLESS
27 EXCUSED FROM SO DOING BY SAID DEPARTMENT, THE DEPARTMENT OF
28 REVENUE [SHALL] MAY REPORT THE FACT TO THE [GOVERNOR, WHO MAY
29 THEREUPON BY PROCLAMATION,] SECRETARY OF THE COMMONWEALTH WHO
30 SHALL THEREUPON,
19930H0353B2964 - 17 -
1 [(A)] (1) IN THE CASE OF A CORPORATION OR ASSOCIATION
2 ORGANIZED UNDER THE LAWS OF PENNSYLVANIA, DECLARE THE CHARTER
3 THEREOF FORFEITED, AND ITS CHARTER PRIVILEGES AT AN END,
4 WHEREUPON THE SAME SHALL CEASE, END, AND BE DETERMINED, SAVING,
5 HOWEVER, THE RIGHTS OF THE CREDITORS AND STOCKHOLDERS IN AND TO
6 ANY PROPERTY, ASSETS, CLAIMS, OR DEMANDS, OF OR BELONGING TO
7 SUCH CORPORATION OR ASSOCIATION;
8 [(B)] (2) IN THE CASE OF A CORPORATION OR ASSOCIATION
9 ORGANIZED UNDER THE LAWS OF ANY OTHER STATE, OR OF THE UNITED
10 STATES, OR OF ANY FOREIGN GOVERNMENT, AND QUALIFIED TO DO
11 BUSINESS WITHIN THIS COMMONWEALTH, DECLARE FORFEITED THE RIGHT
12 OF SUCH CORPORATION OR ASSOCIATION TO DO BUSINESS WITHIN THIS
13 COMMONWEALTH, AND THEREUPON SUCH RIGHT SHALL CEASE, END, AND BE
14 DETERMINED.
15 (C) ANY PERSON OR PERSONS WHO SHALL [(A)] (I) EXERCISE OR
16 ATTEMPT TO EXERCISE ANY POWERS, PRIVILEGES, OR FRANCHISES, UNDER
17 A CHARTER WHICH SHALL HAVE BEEN DECLARED FORFEITED HEREUNDER, OR
18 [(B)] (II) DO OR ATTEMPT TO DO ANY BUSINESS WITHIN THIS
19 COMMONWEALTH IN THE NAME OF, OR FOR, OR ON ACCOUNT OF ANY
20 CORPORATION OR ASSOCIATION, WHOSE RIGHT TO DO BUSINESS WITHIN
21 THIS COMMONWEALTH SHALL HAVE BEEN DECLARED FORFEITED HEREUNDER,
22 SHALL BE GUILTY OF A MISDEMEANOR, AND, ON BEING CONVICTED
23 THEREOF, SHALL BE FINED NOT LESS THAN ONE HUNDRED DOLLARS, OR
24 MORE THAN ONE THOUSAND DOLLARS.
25 SECTION 6 8. THIS ACT SHALL TAKE EFFECT AS FOLLOWS: <--
26 (1) THE ADDITION OF ARTICLE XVI-C OF THE ACT SHALL TAKE
27 EFFECT IN 180 DAYS.
28 (2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT
29 IMMEDIATELY.
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