PRINTER'S NO. 1018
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
896
Session of
2017
INTRODUCED BY FEE, BAKER, CUTLER, GREINER, GROVE, A. HARRIS,
HICKERNELL, KAUFFMAN, LAWRENCE, MENTZER, METCALFE, B. MILLER,
PICKETT, RYAN, WARD, WHEELAND AND ZIMMERMAN, MARCH 20, 2017
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MARCH 20, 2017
AN ACT
Amending the act of April 9, 1929 (P.L.177, No.175), entitled,
"An act providing for and reorganizing the conduct of the
executive and administrative work of the Commonwealth by the
Executive Department thereof and the administrative
departments, boards, commissions, and officers thereof,
including the boards of trustees of State Normal Schools, or
Teachers Colleges; abolishing, creating, reorganizing or
authorizing the reorganization of certain administrative
departments, boards, and commissions; defining the powers and
duties of the Governor and other executive and administrative
officers, and of the several administrative departments,
boards, commissions, and officers; fixing the salaries of the
Governor, Lieutenant Governor, and certain other executive
and administrative officers; providing for the appointment of
certain administrative officers, and of all deputies and
other assistants and employes in certain departments, boards,
and commissions; and prescribing the manner in which the
number and compensation of the deputies and all other
assistants and employes of certain departments, boards and
commissions shall be determined," establishing the Office of
State Inspector General.
The General Assembly finds and declares that:
(1) The prevention of fraud, waste, abuse and corruption
in the administration of State government agencies is an
important responsibility of the Commonwealth.
(2) The prevention of waste, fraud, abuse and corruption
in the administration of State government depends in part on
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
the development, implementation and enforcement of sound
policies and procedures to that end.
(3) Each State agency should exercise constant vigilance
and firmly commit to the implementation and enforcement of
policies and procedures.
(4) The establishment of a full-time program of
investigation and performance review to provide increased
accountability and oversight over State agencies best helps
deter and identify waste, fraud, abuse and illegal acts.
(5) The statutory creation of a wholly independent
office of Inspector General to conduct investigations,
inspections and other reviews in accordance with those
professional standards that relate to the fields of
investigation in governmental environments is necessary to
achieve these goals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of April 9, 1929 (P.L.177, No.175), known
as The Administrative Code of 1929, is amended by adding an
article to read:
ARTICLE V-A
OFFICE OF STATE INSPECTOR GENERAL
Section 501-A. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Office." The Office of State Inspector General.
"Executive agency." As defined in section 102 of the act of
act of October 15, 1980 (P.L.950, No.164), known as the
Commonwealth Attorneys Act.
20170HB0896PN1018 - 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
Section 502-A. Office of State Inspector General.
(a) Establishment.--The Office of State Inspector General is
established.
(b) Appointment.-- The Governor shall nominate a State
Inspector General who shall serve for a term of six years. The
nomination of the State Inspector General shall be confirmed by
the Senate by two-thirds of all the members of the Senate. No
later than 90 days prior to the end of the term of a State
Inspector General, the Governor shall nominate a State Inspector
General. Compensation shall be set by the Executive Board
established under section 204. The State Inspector General may
serve no more than two terms.
(c) Limitation.--The State Inspector General may not seek
election nor accept appointment to a political office during his
or her tenure as State Inspector General and for one year
thereafter.
(d) Removal.--The State Inspector General may be removed by
the Governor only for cause.
Section 503-A. Powers, purpose and duties.
(a) Powers.--The State Inspector General shall have the
power to do the following:
(1) Make an investigation and report relating to the
administration of a program and operation of an executive
agency that the State Inspector General determines is
necessary. If the State Inspector General determines that a
report should be issued, the State Inspector General may
consult with the Office of General Counsel or the Attorney
General before issuing the report to ensure against an
adverse impact on a grand jury proceeding or prosecution
being conducted by a law enforcement agency.
20170HB0896PN1018 - 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
(2) Request information or assistance necessary for
carrying out the duties and responsibilities under this
article from the Federal Government, an executive agency or a
local government agency or a unit of a Federal, State or
local government agency.
(3) Require and obtain, by written notice from an
officer and employee of an executive agency, information,
documents, reports, answers, records, accounts, papers and
other necessary data and documentary evidence.
(4) Have direct and prompt access to the heads of
executive agencies if necessary for a purpose pertaining to
the performance of functions and responsibilities under this
article.
(5) Select, appoint and employ officers and employees
necessary for carrying out the functions, powers and duties
of the office. The officers and employees must be employed in
accordance with current procedures of the Office of
Administration and may be assigned by the State Inspector
General to a designated executive agency.
(6) Issue subpoenas under section 505-A.
(b) Purpose.--The purpose of the Office of State Inspector
General is as follows:
(1) To deter, detect, prevent and eradicate fraud,
waste, misconduct and abuse in a program, operation and
contracting of an executive agency.
(2) To keep the head of an executive agency fully
informed about a problem and deficiency relating to the
operation or administration of a program or contracts entered
into by an executive agency.
(3) To provide leadership, coordination and control over
20170HB0896PN1018 - 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
satellite Inspector General Offices in a designated executive
agency to ensure a coordinated and efficient administration
of duties and use of staff. The existing Office of Inspector
General in the Department of Transportation shall continue as
a satellite Inspector General Office. Each satellite
Inspector General Office in an executive agency shall report
to and follow the direction of the State Inspector General.
(c) Duties.--It is the duty of the State Inspector General
to:
(1) Inspect, evaluate, investigate and review the
activities, records and individuals with contracts,
procurements, grants, agreements and other financial
arrangements undertaken by an executive agency, for the
purposes of identifying fraud, waste, misconduct or abuse.
(2) Conduct civil and administrative investigations of a
program or operation of an executive agency.
(3) Make referrals to the Auditor General for the audit
of the economy, efficiency and effectiveness of an executive
agency's operations and functions and conduct reviews of the
executive agency's performance measurement system.
(4) Review the reliability and validity of the
information provided by an executive agency's performance
measures and standards.
(5) Provide information and evidence that relates to
criminal acts discovered during the course of an
investigation into an executive agency to appropriate law
enforcement officials.
(6) Receive and investigate complaints from any source
or upon the State Inspector General's own initiative
concerning alleged abuses, frauds and service deficiencies,
20170HB0896PN1018 - 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
including deficiencies in the operation and maintenance of an
executive agency facility.
(7) Engage in prevention activities, including, but not
limited to, review of legislation, review of rules,
regulations, policies, procedures and transactions, training
and education.
(8) Refer matters for further civil, criminal and
administrative action to appropriate administrative and
prosecutorial agencies.
(9) Conduct joint investigations and projects with other
oversight or law enforcement agencies that are consistent
with the powers and duties contained under this article.
(10) Recommend remedial actions to be taken by an
executive agency to overcome or correct operating or
maintenance deficiencies and inefficiencies that were
identified by the State Inspector General.
(11) Issue public reports.
(12) Maintain information regarding the cost of
investigations and cooperate with appropriate administrative
and prosecutorial agencies in recovering the costs from
nongovernmental entities involved in willful misconduct.
(13) Perform any other functions necessary to effectuate
this article.
Section 504-A. Request for information.
(a) Duty.--Upon request of the State Inspector General for
information or assistance, an executive agency must within 10
days respond to the request and furnish the information and
assistance to the State Inspector General or an authorized
designee.
(b) Report.--If information or assistance requested under
20170HB0896PN1018 - 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
subsection (a) is, in the judgment of the State Inspector
General, unreasonably refused or not provided, the State
Inspector General may report the circumstances to the head of
the agency and the Office of General Counsel for appropriate
action.
Section 505-A. Subpoenas and witness fees.
(a) Authorization.-- In accordance with the powers under
section 503-A(a) and duties under section 503-A(c), the State
Inspector General may issue a subpoena relating to any matter
pertinent to an examination to a person under the State
Inspector General's jurisdiction or to an individual or a person
receiving services from or through an executive agency. If a
person fails or refuses to obey a subpoena, the State Inspector
General may petition a court of competent jurisdiction to enter
an order compelling the witness to appear and testify or produce
documentary evidence. Failure to obey the court order shall be
punishable as contempt of court.
(b) Form and effect.--A subpoena under subsection (a) shall
be in substantially the same form and have the same force and
effect as a subpoena issued by a court of common pleas. The
State Inspector General shall have the benefit of the process of
the appropriate court of common pleas if necessary to enforce a
subpoena.
(c) Confidentiality.--A subpoena issued under this section
must clearly indicate on the face of the subpoena that the
subpoena is issued in connection with a confidential proceeding
and a breach of confidentiality by the person subpoenaed may
result in a civil penalty or misdemeanor.
(d) Fees.--Witnesses subpoenaed under this section shall be
compensated under 42 Pa.C.S. § 5903 (relating to compensation
20170HB0896PN1018 - 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
and expenses of witnesses).
Section 506-A . Complaint, disclosure and reprisal.
(a) Complaint.--The State Inspector General may receive and
investigate a complaint or information concerning the possible
existence of an activity in an executive agency constituting any
of the following:
(1) A violation of a law, rule or regulation.
(2) Mismanagement, fraud, waste of funds, abuse of
authority, malfeasance, misfeasance and nonfeasance.
(3) A substantial and specific danger to the public
health and safety.
(b) Disclosure.--A person may not take or threaten to take
action against an employee as a reprisal for making a complaint
or disclosing information to the State Inspector General, except
if the complaint was made or the information was disclosed with
the knowledge that the complaint or information was false or
with willful disregard for the truth or falsity of the complaint
or information.
(c) Protection.--The protections in this article for
employees who report, in good faith, fraud, waste, misconduct,
malfeasance, misfeasance, nonfeasance or abuse shall be in
addition and supplementary to each protection provided by the
act of December 12, 1986 (P.L.1559, No.169), known as the
Whistleblower Law.
Section 507-A . Appropriation.
The appropriation for the office shall be in a separate line
item and shall be under the jurisdiction of the State Inspector
General.
Section 508-A. Complement of office.
(a) General rule.--Subject to sufficient funds being
20170HB0896PN1018 - 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
appropriated for such purpose, the office shall hire additional
employees and the employees shall, for a period of not less than
two years, investigate fraud, waste, misconduct and abuse claims
from the Department of Human Services and the Department of
Health.
(b) Number of additional employees.--The number of new
employees hired under subsection (a) shall be sufficient to
increase by at least 50% the total complement of employees in
the Office of Inspector General on March 31, 2016.
(c) Report to General Assembly.--
(1) Not later than one year after the additional
employees are hired under subsection (a), the office shall
submit a written report to the Appropriations Committee of
the Senate, the Public Health and Welfare Committee of the
Senate, the Appropriations Committee of the House of
Representatives and the Human Services Committee of the House
of Representatives. The report shall include:
(i) The number of total investigations addressed by
the office, including a breakdown by new and prior
employees.
(ii) The dollar amount of recovery/cost avoidance
per employee, including a breakdown by new and prior
employees.
(iii) The number of investigations filed with the
office that were not addressed.
(iv) Any additional cost-saving efforts initiated by
the office as a result of additional employees.
(2) The report shall be a public record under the act of
February 14, 2008 (P.L.6, No.3), known as the Right-to-Know
Law.
20170HB0896PN1018 - 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
Section 509-A. Report to General Assembly.
By December 31 of each year, the State Inspector General
shall issue an annual report to the Senate and the House of
Representatives. The annual report shall include, at a minimum,
the following:
(1) Information relating to investigations undertaken by
the office, including the number of cases investigated,
categorized by type, with a specific section detailing
investigations conducted within the Department of Human
Services.
(2) An accounting of taxpayer money that was recovered
as a result of the work of the office.
(3) The monetary value that resulted from fraud
prevention activities as a result of the work of the office.
(4) Summaries of performance of each bureau within the
office.
(5) Specific recommendations concerning the improvement
of any State program to further reduce waste, fraud and
abuse.
Section 2. Except as otherwise provided in Article V-A of
the act, all activities initiated by the Office of Inspector
General in existence on the effective date of this section shall
continue and remain in full force and effect and may be
completed under Article V-A of the act. Orders, regulations,
rules and decisions which were made by the Office of Inspector
General in existence on the effective date of this section and
which are in effect on the effective date of this section shall
remain in full force and effect until revoked, vacated or
modified under Article V-A of the act. Contracts, obligations
and collective bargaining agreements entered into by the Office
20170HB0896PN1018 - 10 -
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
of Inspector General in existence on the effective date of this
section are not affected nor impaired by the addition of Article
V-A of the act.
Section 3. This act shall take effect as follows:
(1) The addition of section 502-A(b) of the act shall
take effect January 16, 2019.
(2) The remainder of this act shall take effect in 60
days.
20170HB0896PN1018 - 11 -
1
2
3
4
5
6
7
8