1Authorizing the Commonwealth and its political subdivisions to
2utilize a data-matching system for purposes of identifying
3and seizing the financial assets of delinquent taxpayers and
4debtors; imposing duties on the Department of Revenue; and
5providing for civil and criminal immunity under certain
6circumstances.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Short title.

10This act shall be known and may be cited as the Data Match
11for Government Tax Collection Act.

12Section 2. Definitions.

13The following words and phrases when used in this act shall
14have the meanings given to them in this section unless the
15context clearly indicates otherwise:

16"Department." The Department of Revenue of the Commonwealth.

17"Financial institution." The term shall have the same
18meaning given to it under 23 Pa.C.S. § 4304.1 (relating to
19cooperation of government and nongovernment agencies).

20"Local taxing authority." An agency of a political

1subdivision of the Commonwealth or a school district of the
2Commonwealth authorized by law to collect taxes on behalf of the
3political subdivision or school district.

4"Obligor." A person whose property is subject to a tax lien
5in favor of a political subdivision or school district.

6"Revenue authority." The Department of Revenue of the
7Commonwealth or a local taxing authority.

8Section 3. Financial institution data match system for
9government tax collection purposes.

10(a) Duties of department.--

11(1) The department shall develop and operate a process
12for data matching with financial institutions in
13substantially the same form as that provided for under 23
14Pa.C.S. § 4304.1 (relating to cooperation of government and
15nongovernment agencies), for the purpose of identifying and
16seizing the nonexempt assets of obligors as identified by the
17department and local taxing authorities.

18(2) The department may designate a third party to
19develop and operate the process, provided that any third
20party must keep all information it obtains from both the
21department and the financial institution confidential and any
22employee, agent or representative of the third party shall be
23prohibited from disclosing that information to anyone other
24than the department or the financial institution.

25(3) The department or its designee shall act as the
26central clearinghouse for data-match requests from local
27taxing authorities, shall forward all such requests to
28financial institutions on behalf of local taxing authorities
29and shall transmit the results of such data-match operations
30to the requesting local taxing authority.

1(4) The department, by regulation:

2(i) Shall specify an electronic data format
3compatible with that used for enforcement of support
4obligations under 23 Pa.C.S. § 4304.1, and require local
5taxing authorities to submit data-match requests in such
6format.

7(ii) Shall coordinate the submission of data-match
8requests with the Department of Public Welfare of the
9Commonwealth, except that the department and the
10Department of Public Welfare may issue joint regulations
11on the coordination of data-match requests to financial
12institutions.

13(iii) May specify reasonable procedures local taxing
14authorities shall follow in submitting data-match
15requests to the department for forwarding to financial
16institutions.

17(iv) May set reasonable fees for processing the
18data-match requests of local taxing authorities, in
19addition to any fee or portion thereof under subsection
20(d).

21(b) Duties of financial institutions.--A financial
22institution doing business in this Commonwealth:

23(1) Shall, at the request of the department, perform
24data matches using the system developed or used to administer
25the child support enforcement provisions of 23 Pa.C.S. §
264304.1, to facilitate the identification and seizure of
27nonexempt financial assets of obligors.

28(2) Shall provide identifying information each calendar
29quarter to the department for each obligor maintaining an
30account at the institution identified by the revenue

1authority. The identifying information shall include the
2obligor's name, address and social security number or other
3taxpayer identification number, all account numbers and
4balances in each account.

5(c) Agreements authorized.--

6(1) Notwithstanding any other provision of law, the
7department and any financial institution doing business in
8this Commonwealth may enter into agreements for the purpose
9of carrying out the provisions of this act. The agreement may
10specify payment of a fee by the department to the financial
11institution to conduct the activities in accordance with
12subsection (b), provided that the fee may not exceed actual
13and reasonable costs incurred by the financial institution.

14(2) A political subdivision shall be liable to the
15department for the portion of any fees attributable to the
16data-match requests of its local taxing authority.

17(d) Construction.--Nothing in this act shall be construed to
18require a financial institution to notify an obligor of a
19request for information by the department under this section.

20Section 4. Immunity.

21Immunity from civil and criminal liability under this act is
22as follows:

23(1) A person, government agency or financial institution
24that provides information pursuant to this act shall not be
25subject to civil or criminal liability for doing so.

26(2) The department, a local taxing authority, a court or
27an authorized employee of such an entity that requests
28information under this section or orders the seizure,
29encumbrance or surrender of an asset held by a financial
30institution shall not be subject to any civil or criminal

1liability for doing so.

2(3) (i) A financial institution shall not be subject to
3civil or criminal liability for encumbering or
4surrendering assets of an obligor as required by this
5section.

6(ii) The immunity provided by subparagraph (i) shall
7not apply to a person or agent of a government agency or
8financial institution that knowingly supplies false
9information under this section.

10Section 5. Penalties and enforcement.

11(a) General rule.--Following notice and hearing, the
12department may impose a civil penalty of up to $1,000 per
13violation on a financial institution that willfully fails to
14comply with a request by the department for information under
15this act.

16(b) Confidentiality of information.--

17(1) Any information provided or collected pursuant to
18this section shall be confidential and may be used by the
19department, the courts or local taxing authorities solely for
20purposes of identifying and locating the assets of obligors
21for the purpose of collecting delinquent taxes.

22(2) Any person, government agency, employer or agent of
23the department or a political subdivision who knowingly
24requests, obtains or divulges such information in violation
25of this section commits a misdemeanor of the third degree
26and, upon conviction, shall be sentenced to pay a fine of up
27to $1,000 per violation and costs and shall be subject to a
28term of imprisonment of not more than one year, or both.

29Section 6. Effective date.

30This act shall take effect in 60 days.