PRINTER'S NO. 1561
No. 1409 Session of 1993
INTRODUCED BY CLARK, WOZNIAK, GEIST, NICKOL, FAIRCHILD, BAKER,
SATHER, STERN, SAURMAN, PETTIT, MARSICO, ARMSTRONG,
E. Z. TAYLOR, HASAY, STEIL, TULLI, TOMLINSON AND HENNESSEY,
APRIL 27, 1993
REFERRED TO COMMITTEE ON APPROPRIATIONS, APRIL 27, 1993
AN ACT
1 Amending the act of April 9, 1929 (P.L.343, No.176), entitled,
2 as amended, "An act relating to the finances of the State
3 government; providing for the settlement, assessment,
4 collection, and lien of taxes, bonus, and all other accounts
5 due the Commonwealth, the collection and recovery of fees and
6 other money or property due or belonging to the Commonwealth,
7 or any agency thereof, including escheated property and the
8 proceeds of its sale, the custody and disbursement or other
9 disposition of funds and securities belonging to or in the
10 possession of the Commonwealth, and the settlement of claims
11 against the Commonwealth, the resettlement of accounts and
12 appeals to the courts, refunds of moneys erroneously paid to
13 the Commonwealth, auditing the accounts of the Commonwealth
14 and all agencies thereof, of all public officers collecting
15 moneys payable to the Commonwealth, or any agency thereof,
16 and all receipts of appropriations from the Commonwealth,
17 authorizing the Commonwealth to issue tax anticipation notes
18 to defray current expenses, implementing the provisions of
19 section 7(a) of Article VIII of the Constitution of
20 Pennsylvania authorizing and restricting the incurring of
21 certain debt and imposing penalties; affecting every
22 department, board, commission, and officer of the State
23 government, every political subdivision of the State, and
24 certain officers of such subdivisions, every person,
25 association, and corporation required to pay, assess, or
26 collect taxes, or to make returns or reports under the laws
27 imposing taxes for State purposes, or to pay license fees or
28 other moneys to the Commonwealth, or any agency thereof,
29 every State depository and every debtor or creditor of the
30 Commonwealth," further providing for regulations relating to
31 interest penalties on Commonwealth accounts.
32 The General Assembly of the Commonwealth of Pennsylvania
1 hereby enacts as follows:
2 Section 1. Section 1507(a) of the act of April 9, 1929
3 (P.L.343, No.176), known as The Fiscal Code, added December 13,
4 1982 (P.L.1155, No.266), is amended to read:
5 Section 1507. Interest Penalties on Commonwealth Accounts.--
6 (a) (1) In accordance with regulations prescribed by the
7 Secretary of the Budget, each Commonwealth agency which acquires
8 property or services from a business concern or a qualified
9 small business concern but which does not make payment for each
10 such complete delivered item of property or service by the
11 required payment date may pay an interest penalty to such
12 business concern, and shall pay an interest penalty to any
13 qualified small business concern, in accordance with this
14 section on the amount of the payment which is due.
15 (2) Such regulations:
16 (i) shall specify that the required payment date shall be:
17 (A) the date on which payment is due under the terms of the
18 contract for the provision of such property or service; or
19 (B) thirty calendar days after receipt of a proper invoice
20 for the amount of the payment due, if a specific date on which
21 payment is due is not established by contract;
22 (ii) shall specify separate required payment dates for
23 contracts under which property or services are provided in a
24 series of partial executions or deliveries, to the extent that
25 such contract provides for separate payment of such partial
26 execution or delivery;
27 (iii) shall require that prior to the date upon which
28 payment without an interest penalty is due, Commonwealth
29 agencies notify the business concern or qualified small business
30 concern of any defect in goods and services or impropriety in
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1 such invoice which would prevent the running of the time periods
2 specified in this paragraph; [and]
3 (iii.1) shall require that all Commonwealth bid
4 solicitations, bid specifications, contract proposals and
5 contracts contain the statutory and regulatory definitions of a
6 qualified small business concern and further specific language
7 clearly stating the requirement that each qualified small
8 business concern specifically set forth on all invoices to the
9 Commonwealth that the billing entity is a qualified small
10 business concern;
11 (iii.2) shall require that each successful Commonwealth
12 bidder receive a preprinted blank invoice prepaid by the
13 Commonwealth which meets all the requirements necessary for a
14 qualified small business concern to obtain permissible interest
15 payments; and
16 (iv) may require any qualified small business concern to
17 present on or with the invoice a statement that it meets the
18 definition of a qualified small business concern contained in
19 this section.
20 * * *
21 Section 2. This act shall apply to all bid solicitations and
22 contract proposals prepared on or after the effective date of
23 this act.
24 Section 3. This act shall take effect immediately.
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