PRINTER'S NO. 4369
No. 2375 Session of 2008
INTRODUCED BY JOSEPHS, DeWEESE, McCALL, SURRA, DERMODY, BUXTON, CARROLL, CONKLIN, CURRY, FAIRCHILD, FREEMAN, GALLOWAY, GIBBONS, GODSHALL, GOODMAN, HANNA, HARHAI, HORNAMAN, KAUFFMAN, KESSLER, KING, KORTZ, KULA, LEVDANSKY, MANDERINO, McILVAINE SMITH, MELIO, MUNDY, MURT, M. O'BRIEN, ROAE, RUBLEY, SAINATO, SAMUELSON, SAYLOR, SHAPIRO, WANSACZ, J. WHITE, YOUNGBLOOD AND D. O'BRIEN, SEPTEMBER 18, 2008
REFERRED TO COMMITTEE ON STATE GOVERNMENT, SEPTEMBER 18, 2008
AN ACT 1 Providing for banning certain payments to Commonwealth 2 employees. 3 The General Assembly of the Commonwealth of Pennsylvania 4 hereby enacts as follows: 5 Section 1. Short title. 6 This act shall be known and may be cited as the State Agency 7 Bonus Ban Act. 8 Section 2. Definitions. 9 The following words and phrases when used in this act shall 10 have the meanings given to them in this section unless the 11 context clearly indicates otherwise: 12 "Agency." An executive agency, an independent agency, a 13 legislative agency or a judicial agency as defined by this 14 section. 15 "Bonus." Monetary or other compensation given to an employee
1 in addition to the employee's annual salary or other rate of 2 compensation. 3 "Compensation plan." A bona fide structure of compensation 4 for services rendered, including salaries and benefits, as 5 developed and administered by an agency as authorized by 6 statute, executive order, judicial order, or developed as part 7 of personnel administration pursuant to agency policy or the 8 resolution of the Executive Board. A compensation plan may 9 include a reimbursement, stipend or similar payment to an agency 10 employee who incurs employment-related expenses. 11 "Executive agency." Any of the following: 12 (1) Any office, department, authority, board, multistate 13 agency or commission of the executive branch; and a State- 14 affiliated entity. The term includes, but is not limited to: 15 (i) The Governor's Office. 16 (ii) The Office of Attorney General, the Department 17 of the Auditor General and the Treasury Department. 18 (iii) An organization established by the 19 Constitution of Pennsylvania, a statute or an executive 20 order which performs or is intended to perform an 21 essential governmental function. 22 (2) The term does not include an independent, 23 legislative or judicial agency. 24 "Independent agency." Any board, commission or other agency 25 of the Commonwealth that is not subject to the policy 26 supervision and control of the Governor. The term does not 27 include an executive, legislative or judicial agency. 28 "Judicial agency." A court of this Commonwealth or any other 29 entity or office of the unified judicial system. 30 "Legislative agency." Any office, department, authority, 20080H2375B4369 - 2 -
1 committee or commission of the legislative branch whether now 2 existing or created after the effective date of this section. 3 The term includes all party caucuses of the Senate and of the 4 House of Representatives. The term does not include an 5 executive, independent or judicial agency. 6 Section 3. Bonuses. 7 (a) Prohibition.--Except as set forth in subsection (b), an 8 agency may not pay a bonus to an agency employee. 9 (b) Exceptions.--Subsection (a) does not apply to any of the 10 following: 11 (1) A payment pursuant to the terms of a compensation 12 plan, employment contract, collective bargaining agreement or 13 similar instrument that functions as the equivalent of an 14 employment contract or collective bargaining agreement, 15 including: 16 (i) A severance payment or settlement agreement. 17 (ii) A payment in addition to base pay, which 18 results from a general pay increase, service increment, 19 performance-based increase or cost-of-living adjustment. 20 (iii) Any overtime or premium payment made in 21 accordance with Federal or State law, shift differential 22 payment, standby or call-time payment, hazard payment or 23 extra-duty payment. 24 (iv) A payment made for unused annual vacation, 25 personal or sick leave or other earned but unused leave. 26 (2) A payment made pursuant to an arbitration award or 27 as a result of litigation or as required by law. 28 (c) Agreements.--A compensation plan, employment contract, 29 collective bargaining agreement or similar instrument that 30 functions as the equivalent of an employment contract or 20080H2375B4369 - 3 -
1 collective bargaining agreement shall be in writing and shall be 2 open for public inspection. 3 Section 4. Penalties. 4 (a) Employees.-- 5 (1) A bonus in violation of section 3 is void. 6 (2) An agency employee who is paid a bonus in violation 7 of section 3 after the effective date of this act shall 8 reimburse the agency that made the payment for the full 9 amount of the bonus at the direction of the agency. 10 (b) Employers.--An individual who intentionally authorizes 11 the payment of a bonus in violation of section 3 without a good 12 faith belief that the payment is excepted under section 3(b) 13 commits a misdemeanor of the third degree. 14 (c) Effect on compensation.--A bonus payment made in 15 violation of section 3 as determined by the agency that made the 16 payment or by a court of competent jurisdiction shall not be 17 deemed to be compensation. Nothing in this act shall be deemed 18 to affect the definition of compensation under 71 Pa.C.S. Pt. 19 XXV (relating to retirement for State employees and officers) or 20 24 Pa.C.S. Pt. IV (relating to retirement for school employees). 21 Section 10. Effective date. 22 This act shall take effect in 60 days. I16L71RZ/20080H2375B4369 - 4 -