Trial Engrossment of Amendment A06960 to House Bill 1843 P.N. 3356, Regular Session 2017-2018

A06960

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1843

Session of

2017

INTRODUCED BY GROVE, THOMAS, FEE, ROTHMAN, BARRAR, PHILLIPS-

HILL, KAUFFMAN, LAWRENCE, BERNSTINE, McGINNIS, MILLARD,

WHEELAND, KEEFER, ZIMMERMAN, DUSH, MOUL AND RYAN,

OCTOBER 11, 2017

AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF

REPRESENTATIVES, AS AMENDED, APRIL 17, 2018

AN ACT

Amending Title 72 (Taxation and Fiscal Affairs) of the

Pennsylvania Consolidated Statutes, providing for

Commonwealth BUDGET AND FOR financial transparency.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Title 72 of the Pennsylvania Consolidated

Statutes is amended by adding a chapter to read:

CHAPTER 19

COMMONWEALTH FINANCIAL TRANSPARENCY

Sec.

1901. Establishment of Financial Watch Program.

1902. Duties of State Treasurer.

1903. Duties of Commonwealth agencies.

1904. Corrective action plans.

1905. Withholding of funds.

1906. Legislative oversight.

§ 1901. Establishment of Financial Watch Program.

The Financial Watch Program is established within the

Treasury Department for the purpose of ensuring that

Commonwealth programs do not expend money in excess of the

amount appropriated to the Commonwealth programs. The State

Treasurer shall be responsible for administering the Financial

Watch Program. Information relating to the Financial Watch

Program and findings of the Financial Watch Program shall be

placed on a publicly accessible Internet website.

§ 1902. Duties of State Treasurer.

The State Treasurer shall have the following duties in

administering the Financial Watch Program:

(1) Compile an analysis of the appropriations for

Commonwealth programs based on the appropriations at the

close of business for the prior day. The analysis shall

include each appropriation, total budgeted appropriation,

total spent appropriation and percentage of the total

appropriation spent on each Commonwealth program.

(2) Designate the fiscal condition of a Commonwealth

program in accordance with the following:

(i) If a Commonwealth program will not meet or

exceed its budget based on the percentage of total budget

spent, spending forecasts based on historical trends and

the percentage of time remaining in the fiscal year, the

State Treasurer shall designate the Commonwealth program

as: Under Budget.

(ii) If a Commonwealth program will meet its budget

based on the percentage of total spent budget, spending

forecasts based on historical trends and the percentage

of time remaining in the fiscal year, the State Treasurer

shall designate the Commonwealth program as: On Budget.

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(iii) If a Commonwealth program will exceed its

budget based on the percentage of total budget spent,

spending forecasts based on historical trends and the

percentage of time remaining in the fiscal year, the

State Treasurer shall designate the Commonwealth program

as: Over Budget.

§ 1903. Duties of Commonwealth agencies.

A Commonwealth agency shall provide the State Treasurer all

information requested to comply with this chapter.

§ 1904. Corrective action plans.

Upon determining that a Commonwealth program will be over

budget under section 1902(2)(iii) (relating to duties of State

Treasurer), the State Treasurer shall notify the Governor's

Office, the Independent Fiscal Office and the General Assembly.

Upon being notified that the Commonwealth program is projected

to be over budget, the Governor's Office shall develop a

corrective action plan to ensure that the Commonwealth program

does not exceed its budget. The corrective action plan shall be

finalized within 20 days from the notification of the State

Treasurer. The finalized corrective action plan shall be sent to

the General Assembly, Independent Fiscal Office and the State

Treasurer.

§ 1905. Withholding of funds.

If the program designated as being over budget under section

1902(2)(iii) (relating to duties of State Treasurer) continues

to operate over budget after a corrective action plan under

section 1904 (relating to corrective action plans) is in place

for 60 days, the State Treasurer shall withhold all payments to

the over budgeted program, until the program is operating within

the Commonwealth agency's appropriated budget.

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§ 1906. Legislative oversight.

The Appropriations Committee of the Senate and the

Appropriations Committee of the House of Representatives shall

hold a public hearing on the details of the finalized corrective

action plan.

Section 2. This act shall take effect in 90 days.

SECTION 1. TITLE 72 OF THE PENNSYLVANIA CONSOLIDATED

STATUTES IS AMENDED BY ADDING CHAPTERS a chapter TO READ:

CHAPTER 3

BUDGET

SEC.

301. AGENCY BUDGET DOCUMENTS.

§ 301. AGENCY BUDGET DOCUMENTS.

AN AGENCY SUBMITTING DOCUMENTATION USED BY THE OFFICE OF THE

BUDGET FOR PREPARATION OF THE GOVERNOR'S BUDGET SUBMISSION TO

THE GENERAL ASSEMBLY UNDER SECTION 613 OF THE ACT OF APRIL 9,

1929 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF

1929, SHALL PLACE THE ORIGINAL, UNEDITED DOCUMENTS ON THE

AGENCY'S PUBLICLY ACCESSIBLE INTERNET WEBSITE AND THE AGENCY

SHALL ELECTRONICALLY NOTIFY MEMBERS OF THE GENERAL ASSEMBLY. THE

DOCUMENTS SHALL BE AVAILABLE NO LATER THAN THE FIRST MONDAY OF

NOVEMBER 2018 AND EVERY YEAR THEREAFTER.

CHAPTER 5

FINANCIAL TRANSPARENCY

SEC.

501. STATE TREASURY TRANSPARENCY PORTAL.

502 . DUTIES OF COMMONWEALTH AGENCIES.

503. COMMONWEALTH CHECKBOOK.

§ 501. STATE TREASURY TRANSPARENCY PORTAL.

(A) DEVELOPMENT.--THE STATE TREASURER SHALL DEVELOP AND

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MAINTAIN ON THE TREASURY DEPARTMENT'S PUBLICLY ACCESSIBLE

INTERNET WEBSITE A TRANSPARENCY PORTAL WITH INFORMATION RELATING

TO THE COMMONWEALTH'S FINANCES. THE FOLLOWING SHALL APPLY:

(1) THE TRANSPARENCY PORTAL SHALL BE MADE AVAILABLE TO

THE PUBLIC AND INCLUDE FIGURES AND VISUAL AIDS TO DEMONSTRATE

GROWTH OR REDUCTION IN EXPENDITURES AND REVENUE STARTING NO

LATER THAN THE 2014-2015 FISCAL YEAR.

(2) THE VISUAL AIDS REQUIRED UNDER PARAGRAPH (1) SHALL

INCLUDE, BUT NOT BE LIMITED TO, CHARTS AND GRAPHS.

(3) INFORMATION PROVIDED BY THE TREASURY DEPARTMENT

SHALL BE MADE AVAILABLE TO THE PUBLIC TO DOWNLOAD EITHER AS

AN IMAGE OR SPREADSHEET DOCUMENT.

(B) GENERAL FUND INFORMATION.--THE STATE TREASURER SHALL

PROVIDE ON THE TRANSPARENCY PORTAL AN ANALYSIS OF THE GENERAL

FUND UPDATED TO ACCURATELY REFLECT THE GENERAL FUND AT THE END

OF THE PRIOR DAY, INCLUDING:

(1) CASH FLOW WITHIN THE GENERAL FUND WHICH SHALL

INCLUDE A LINE GRAPH SHOWING CHANGES IN CASH FLOW WITH A

RANGE STARTING FROM THE 2014-2015 FISCAL YEAR.

(2) THE CURRENT GENERAL FUND BALANCE.

(3) GENERAL FUND EXPENDITURES. THE FOLLOWING SHALL

APPLY:

(I) THE PUBLIC SHALL BE ABLE TO DELINEATE

EXPENDITURES MADE OUT OF THE GENERAL FUND BY THE

COMMONWEALTH AGENCY THAT MADE THE EXPENDITURE.

(II) IN ORDER TO PROVIDE THE INFORMATION REQUIRED

UNDER THIS SUBSECTION, EACH COMMONWEALTH AGENCY SHALL

PROVIDE THE DATA TO THE TREASURY DEPARTMENT IN A FILE

FORMAT STIPULATED BY THE TREASURY DEPARTMENT THROUGH

INTERFACE FILES.

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(4) GENERAL FUND REVENUES, INCLUDING INFORMATION

RELATING TO THE DIFFERENCE BETWEEN ESTIMATED REVENUES FOR THE

GIVEN FISCAL YEAR AND ACTUAL REVENUES COLLECTED. THE TREASURY

DEPARTMENT SHALL ALSO INCLUDE A GRAPH COMPARING CHANGES

WITHIN THE GENERAL FUND REVENUES AND GENERAL FUND

EXPENDITURES STARTING WITH THE 2018-2019 FISCAL YEAR.

ON THE TRANSPARENCY PORTAL INFORMATION RELATING TO THE GENERAL

FUND TO ACCURATELY REFLECT THE COMMONWEALTH'S FINANCES AT THE

END OF THE CLOSE OF BUSINESS THE PREVIOUS DAY, INCLUDING:

(1) EXPENDITURES FROM EACH OF THE COMMONWEALTH'S SPECIAL

OR RESTRICTED FUNDS, INCLUDING A BREAKDOWN OF AGENCY

EXPENDITURES FROM WITHIN THOSE FUNDS.

(2) DAILY CHANGES IN REVENUE AND EXPENDITURES FOR THE

COMMONWEALTH'S SPECIAL AND RESTRICTED FUNDS. THE INFORMATION

SHALL BE MADE AVAILABLE AS A LINE AND BAR GRAPH WITH FIGURES

TO REFLECT CHANGES IN THE GRAPH.

(3) IN ORDER TO IMPLEMENT THIS SUBSECTION, EACH

COMMONWEALTH AGENCY SHALL PROVIDE THE TREASURY DEPARTMENT

DATA COLLECTED UNDER THE PENNSYLVANIA WEB ACCOUNTABILITY AND

TRANSPARENCY (PENNWATCH) ACT, IN A FILE FORMAT STIPULATED BY

THE TREASURY DEPARTMENT THROUGH INTERFACE FILES.

(D) COMMONWEALTH INVESTMENT INFORMATION.--THE STATE

TREASURER SHALL PROVIDE INFORMATION ON THE TRANSPARENCY PORTAL

RELATING TO THE COMMONWEALTH'S INVESTMENTS. THE INFORMATION

SHALL INCLUDE MONEY INVESTED BY THE COMMONWEALTH INTO BOTH

SHORT-TERM AND LONG-TERM INVESTMENTS. THE FOLLOWING SHALL APPLY:

(1) THE STATE TREASURER SHALL INCLUDE FROM WHICH FUND

MONEY WAS MOVED BY THE STATE TREASURER FOR THE PURPOSES OF

SHORT-TERM OR LONG-TERM INVESTMENT.

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(2) THE STATE TREASURER SHALL ENSURE THE INFORMATION IS

UPDATED TO REFLECT CHANGES IN INVESTMENT AND FUND BALANCES

FROM THE CLOSE OF BUSINESS THE PREVIOUS DAY.

(E) COMMONWEALTH PROGRAMS.--THE STATE TREASURER SHALL

INCLUDE IN THE TRANSPARENCY PORTAL AN ANALYSIS OF THE

APPROPRIATIONS FOR COMMONWEALTH PROGRAMS BASED ON THE

APPROPRIATIONS AT THE CLOSE OF BUSINESS FOR THE PRIOR DAY. THE

ANALYSIS SHALL INCLUDE EACH APPROPRIATION, TOTAL BUDGETED

APPROPRIATION, TOTAL AUGMENTING REVENUE, TOTAL SPENT

APPROPRIATION AND PERCENTAGE OF THE TOTAL APPROPRIATION SPENT.

(F) COMMONWEALTH FINANCIAL WATCH.-- THE STATE TREASURER SHALL

INCLUDE IN THE TRANSPARENCY PORTAL A COMMONWEALTH FINANCIAL

WATCH WHICH INCLUDES:

(1) THE TOP 20 COST DRIVERS WITHIN THE GENERAL FUND

DURING THE CURRENT FISCAL YEAR STARTING WITH THE 2018-2019

FISCAL YEAR.

(2) THE 10 COMMONWEALTH AGENCIES WITH THE HIGHEST DOLLAR

AMOUNT OF GENERAL FUND EXPENDITURES DURING THE CURRENT FISCAL

YEAR STARTING WITH 2018-2019 FISCAL YEAR, INCLUDING THE

PERCENT OF THE COMMONWEALTH AGENCY'S GENERAL FUND

APPROPRIATION SPENT.

(G) TIME PERIOD.--ALL INFORMATION PROVIDED UNDER THIS

SECTION SHALL REFLECT CHANGES WITHIN THE COMMONWEALTH'S FINANCES

STARTING NO LATER THAN THE 2018-2019 FISCAL YEAR.

§ 502. DUTIES OF COMMONWEALTH AGENCIES.

A COMMONWEALTH AGENCY SHALL PROVIDE THE STATE TREASURER THE

DATA REQUIRED FOR THE OPERATION OF THE TRANSPARENCY PORTAL UNDER

SECTION 501 (RELATING TO STATE TREASURY TRANSPARENCY PORTAL ) IN

A FILE FORMAT STIPULATED BY THE TREASURY DEPARTMENT THROUGH

INTERFACE FILES.

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§ 503. COMMONWEALTH CHECKBOOK.

(A) ACCESS.--THE OFFICE OF THE BUDGET SHALL PROVIDE ACCESS

TO THE INTEGRATED CENTRAL SYSTEM UNDER SECTION 620.1 OF THE ACT

OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE

CODE OF 1929, WITH INQUIRY-ONLY SCREENS ON ITS PUBLICLY

ACCESSIBLE INTERNET WEBSITE TO THE FOLLOWING:

(1) MEMBERS OF THE GENERAL ASSEMBLY.

(2) THE INDEPENDENT FISCAL OFFICE.

(3) THE DEPARTMENT OF THE AUDITOR GENERAL.

(4) THE GENERAL PUBLIC.

(B) EXPENSES.--THE OFFICE OF THE BUDGET SHALL PAY FOR ANY

EXPENSES TO IMPLEMENT THIS SECTION WITH UNENCUMBERED FUNDS.

SECTION 2. THIS ACT SHALL TAKE EFFECT IN 90 DAYS.

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