1Amending Title 64 (Public Authorities and Quasi-Public
2Corporations) of the Pennsylvania Consolidated Statutes,
3establishing the Delinquent Debt Intercept Authority.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Title 64 of the Pennsylvania Consolidated
7Statutes is amended by adding a chapter to read:

8CHAPTER 62

9DELINQUENT DEBT INTERCEPT AUTHORITY

10Subchapter

11A. General Provisions

12B. Structure and Powers

13C. Accounts

14D. Intercept Program

15E. Executive Agencies

16F. Nonexecutive Governmental Agencies

17SUBCHAPTER A

18GENERAL PROVISIONS

1Sec.

26201. Scope of chapter.

36202. Definitions.

46203. Construction.

5§ 6201. Scope of chapter.

6This chapter relates to the Delinquent Debt Intercept
7Authority.

8§ 6202. Definitions.

9The following words and phrases when used in this chapter
10shall have the meaning given to them in this section unless the
11context clearly indicates otherwise:

12"Act." The act of July 7, 1947 (P.L.1368, No.542), known as
13the Real Estate Tax Sale Law.

14"Authority." The Delinquent Debt Intercept Authority
15established in section 6211 (relating to authority).

16"Board." The board of the Delinquent Debt Intercept
17Authority established in section 6212 (relating to board).

18"Bureau."  As that term is defined under the act.

19"Certified debt." Either of the following:

20(1)  A final claim which has been certified by the
21office.

22(2)  A final claim which has been certified by the
23governing body of a government agency which is not an
24executive agency.

25"Certified Commonwealth income tax obligation." A final
26Commonwealth income tax obligation which has been certified by
27the office.

28"Claims." An amount owed to a Federal agency or government
29agency. The term includes taxes, fines, fees, property tax
30claims, property tax debts, interest and civil penalties. The

1term does not include any of the following:

2(1) A court-ordered child support obligation.

3(2) A Federal tax liability.

4(3) An obligation which is less than $25.

5(4) An obligation other than a property tax claim or
6property tax debt, which is secured by collateral.

7"Commonwealth agency." An executive agency, an independent
8agency or a State-affiliated entity.

9"Commonwealth income tax obligation." An obligation owed the
10Commonwealth under Article III or IV of the act of March 4, 1971
11(P.L.6, No.2), known as the Tax Reform Code of 1971.

12"Debtor." A person that owes a claim to a Federal agency or
13that owes a certified debt to a government agency.

14"Executive agency." The Governor and the departments,
15boards, commissions, authorities and other officers and agencies
16of the Commonwealth. The term does not include a court or other
17officer or agency of the Unified Judicial System, the General
18Assembly and its officers and agencies, an independent agency, a
19State-affiliated entity, a State-related institution, a
20political subdivision, a municipal authority or a local, 
21regional or metropolitan transportation authority.

22"Federal agency." The United States, the President of the
23United States, the Congress and any department, corporation,
24agency or instrumentality designated or established by the
25United States.

26"Federal payment." A payment to be made by a Federal agency
27to a person. The term does not include any of the following:

28(1)  A Federal tax refund payment.

29(2)  A Federal payment for salary, wage, pension or other
30compensation to or on behalf of an employee of a Federal

1agency.

2(3)  A payment due an individual under the Social
3Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.).

4(4)  A payment due an individual under Part B of the
5Black Lung Benefits Act (Public Law 91-173, 30 U.S.C. § 901 
6et seq.).

7(5)  A payment due an individual under any law
8administered by the Railroad Retirement Board.

9(6)  Any other payment excluded by the Secretary of the
10United States Treasury under the Treasury Offset Program.

11"Federal tax payment." A Federal tax refund payment to be
12made by a Federal agency to a person.

13"Final claim." A claim which remains unpaid or uncollected
14for a period exceeding 30 days from the date the right to appeal
15or contest the claim first expired.

16"Final Commonwealth income tax obligation." A Commonwealth
17income tax obligation which remains unpaid or uncollected for a
18period exceeding 30 days from the date the right to appeal or
19contest the obligation first expired.

20"Fund." The Delinquent Debt Intercept Fund.

21"Government agency." A Commonwealth agency; the Unified
22Judicial System and its courts, officers and agencies; the
23General Assembly and its officers and agencies; a political
24subdivision; a municipal authority or a local, regional or
25metropolitan transportation authority.

26"Governing body."

27(1) The court, body or board authorized by law to adopt
28binding resolutions or enact ordinances for a government
29agency. The term includes an employee or officer of a court,
30body or board who has by a binding resolution or ordinance

1been given explicit authority to act for the court, body or
2board in a particular matter or type of matter.

3(2) For municipalities which are governed by separate
4legislative and executive branches, the executive employee or
5officer who is responsible for revenue collection.

6"Independent agency." A board, commission or other agency or
7officer of the Commonwealth which is not subject to the policy,
8supervision and control of the Governor. The term does not
9include a court or other officer or agency of the Unified
10Judicial System, the General Assembly and its officers and
11agencies, an executive agency, a State-affiliated entity, a
12State-related institution, a political subdivision, a municipal
13authority or a local, regional or metropolitan transportation
14authority.

15"Local, regional or metropolitan transportation authority."
16An entity meeting the definition of "authority" under 74 Pa.C.S.
17§ 1701 (relating to definitions).

18"Municipal authority." A public authority created under 53
19Pa.C.S. Ch. 56 (relating to municipal authorities) or under the
20former act of May 2, 1945 (P.L.382, No.164), known as the
21Municipality Authorities Act of 1945.

22"Office." The Office of the Budget.

23"Payee." A debtor owed a payment from a Federal agency or an
24executive agency.

25"Political subdivision." As that term is defined in 1
26Pa.C.S. § 1991 (relating to definitions).

27"Program."  The Delinquent Debt Intercept Program established
28in Subchapter D.

29"Property tax claim." A claim as defined under section 102
30of the act.

1"Property tax debt." A liability of a person in whose name a 
2real property is last registered with a government agency 
3located in a county of the first or second class for a tax 
4levied, with added interest and penalties, by the government 
5agency upon the real property.

6"Secretary." The Secretary of the Budget.

7"State-affiliated entity." A Commonwealth authority or a
8Commonwealth entity. The term includes the Pennsylvania Turnpike
9Commission, the Pennsylvania Housing Finance Agency, the
10Commonwealth Financing Authority, the Pennsylvania Municipal
11Retirement Board, the Pennsylvania Infrastructure Investment
12Authority, the State Public School Building Authority, the
13Pennsylvania Higher Educational Facilities Authority and the
14State System of Higher Education. The term does not include a
15court or other officer or agency of the Unified Judicial System,
16the General Assembly and its officers and agencies, an executive
17agency, a State-related institution, a political subdivision, a
18municipal authority or a local, regional or metropolitan
19transportation authority.

20"State payment." A payment to be made by an executive agency
21to a person. The term does not include any of the following:

22(1)  Payments for salary, wage, pension or other
23compensation to or on behalf of an employee of an executive
24agency.

25(2)  Payments to be made to an individual under the act
26of June 2, 1915 (P.L.736, No.338), known as the Workers'
27Compensation Act.

28(3)  Payments to be made to an individual under the act
29of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1),
30known as the Unemployment Compensation Law.

1(4)  Payments to be made to an individual under the act
2of June 13, 1967 (P.L.31, No.21), known as the Public Welfare
3Code.

4(5)  A refund made in accordance with section 304 of the
5act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
6Code of 1971.

7"State-related institution." The Pennsylvania State 
8University, the University of Pittsburgh, Lincoln University or
9Temple University.

10"Treasury Offset Program." The program authorized under 31
11U.S.C. § 3716 (relating to administrative offset).

12§ 6203. Construction.

13This chapter shall be liberally construed in order to affect
14the public purposes of this chapter.

15SUBCHAPTER B

16STRUCTURE AND POWERS

17Sec.

186211. Authority.

196212. Board.

206213. Powers.

21§ 6211. Authority.

22(a) Establishment.--There is established an independent
23authority to be known as the Delinquent Debt Intercept
24Authority. The authority shall be an instrumentality of the 
25Commonwealth and a body corporate and politic, with corporate
26succession.

27(b) Governance.--The authority shall be governed by the
28board. The powers of the authority shall be exercised by the
29board.

30(c) Expenses.--

1(1) Expenses of the authority shall be paid from income
2of the authority. Except as provided in this chapter or by
3other law, the Commonwealth shall not be responsible for
4funding the expenses of the authority.

5(2) The authority may borrow from the Commonwealth an
6amount not to exceed $1,000,000 for the purpose of operation
7of the authority. Any amount borrowed pursuant to this
8paragraph must be repaid to the Commonwealth by June 30,
92015.

10(d) Fiscal year.--The fiscal year of the authority shall be
11the same as the fiscal year of the Commonwealth.

12(e) Audit.--

13(1) The accounts and books of the authority shall be
14examined and audited annually by an independent certified
15public accounting firm.

16(2) The authority shall, by December 31 of each year,
17file a copy of the audit required by paragraph (1) with the
18Secretary of the Senate and the Chief Clerk of the House of
19Representatives.

20(f) Publication.--The authority shall annually publish a
21concise financial statement in the Pennsylvania Bulletin.

22(g) Cooperation.--Executive agencies, other than the office,
23shall cooperate with and provide assistance to the authority
24without financial reimbursement.

25(h) Existence and dissolution.--

26(1) The authority shall exist until terminated by law.

27(2) The authority shall be dissolved by law if all
28outstanding liabilities of the authority have been fully paid
29or provision has been made for payment of all outstanding
30liabilities of the authority. Upon the dissolution of the

1authority, all funds, assets and other property of the
2authority shall vest in the Commonwealth.

3(i) Procurement.--The authority shall be considered an
4independent agency for the purposes of 62 Pa.C.S. Pt. I
5(relating to Commonwealth procurement code).

6(j) Relationship with office.--

7(1) The office shall provide administrative services and
8staff to the authority and the board. The authority shall
9reimburse the office for the cost of providing the
10administrative services and staff.

11(2) The authority shall enter into agreements with the
12office setting forth the rights and obligations they have to
13each other in carrying out their respective responsibilities
14under and to further the intent of this chapter.

15(k) Applicability.--The following acts shall apply to the
16authority and the board:

17(1) The act of July 19, 1957 (P.L.1017, No.451), known
18as the State Adverse Interest Act.

19(2) The act of February 14, 2008 (P.L.6, No.3), known as
20the Right-to-Know Law.

21(3) The provisions of 65 Pa.C.S. Chs. 7 (relating to
22open meetings) and 11 (relating to ethics standards and
23financial disclosure).

24§ 6212. Board.

25(a) Composition.--The board shall be composed of the
26following members:

27(1) The State Treasurer or a designee.

28(2) The Attorney General or a designee.

29(3) The Secretary of the Budget or a designee.

30(4) The Secretary of the Department of Revenue or a

1designee.

2(5) One individual appointed by the Governor.

3(6) Four legislative appointees.

4(i) Appointments are as follows:

5(A) One individual who is a member of the
6government of a county and who shall be appointed by
7the President pro tempore of the Senate.

8(B) One individual who is a member of the
9government of a township of the first or second class
10appointed by the Minority Leader of the Senate.

11(C) One individual who is a member of the
12government of a city of the first, second or third
13class appointed by the Speaker of the House of
14Representatives.

15(D) One individual who is a member of a school
16board appointed by the Minority Leader of the House
17of Representatives.

18(ii) Legislative appointees shall serve at the
19pleasure of the appointing authority.

20(iii) An individual appointed to the board pursuant
21to subparagraph (i) may not be a member of the General
22Assembly or staff of a member of the General Assembly.

23(b) Organization.--The Governor shall select a member of the
24board to serve as chairperson. The members shall select from
25among themselves such officers as they shall determine.

26(c) Meetings.--The board shall meet at the call of the
27chairperson.

28(d) Quorum.--Five members of the board shall constitute a
29quorum, and the following shall apply:

30(1) The consent of at least five members of the board,

1with at least four of the consenting members being appointed
2under subsection (a)(6), shall be necessary to take action on
3behalf of the authority for any of the following:

4(i)  Adopting bylaws.

5(ii)  Hiring professionals under section 6213(a)(5)
6and (6) (relating to powers).

7(2) The consent of at least five members of the board
8shall be necessary to take any other action on behalf of the
9authority.

10(e) Compensation.--The members of the board shall not be
11entitled to compensation for their services as members of the
12board but shall be entitled to reimbursement for all necessary
13and reasonable expenses incurred in connection with the
14performance of their duties as members of the board.

15(f) Liability.--Members of the board shall not be liable
16personally for any debt of the authority.

17(g) Initial appointment and vacancy.--Appointing authorities
18shall appoint initial members to the board within 30 days of the
19effective date of this section. Whenever a vacancy occurs on the
20board, the appointing authority shall appoint a successor member
21within 30 days of the vacancy.

22§ 6213. Powers.

23(a) Powers.--The authority may do all of the following:

24(1) Adopt bylaws and guidelines proposed by the office
25as necessary.

26(2) Sue and be sued, implead and be impleaded,
27interplead, complain and defend in any court.

28(3) Adopt, use and alter a corporate seal. No seal shall
29be required to take official action.

30(4) Establish accounts necessary or desirable for its

1corporate purposes.

2(5) Employ an executive director.

3(6) Retain attorneys, accountants, auditors and
4consultants to render services and engage the services of
5other advisors, consultants and agents as necessary. For the
6purposes of this paragraph, the authority shall be considered
7an independent agency for purposes of the act of October 15,
81980 (P.L.950, No.164), known as the Commonwealth Attorneys
9Act.

10(7) Pay or satisfy debts of the authority.

11(8) Contract and execute instruments.

12(9) Impose and collect surcharges in connection with the
13offsetting of debts on behalf of Federal agencies and of
14certified debts on behalf of governmental agencies.

15(10) Agree to and comply with conditions attached to
16Federal or Commonwealth funds not inconsistent with the
17provisions of this chapter.

18(11) Exercise rights provided by law for the benefit or
19protection of the authority, a Federal agency or a government
20agency.

21(12) Invest money of the authority not required for
22immediate use, as the board determines.

23(13) Procure insurance against any loss in connection
24with its property and other assets.

25(14) Promulgate and adopt, after consultation with
26counties and bureaus, regulations, guidelines and statements
27of policy as it may deem necessary and appropriate to
28effectuate the public purposes of this chapter.

29(15) Do any other appropriate act necessary or
30convenient to:

1(i) carry out and effectuate the purposes of this
2chapter; or

3(ii) exercise the powers set forth in this
4subsection, including any act reasonably implied from
5those powers.

6(b) Duties.--The authority shall do all of the following:

7(1) Assume the rights, obligations, duties and
8responsibilities of the Commonwealth under an agreement
9between the Commonwealth and a Federal agency relating to the
10participation of the Commonwealth in the Treasury Offset
11Program.

12(2) Contract for services related to the implementation
13and operation of the program.

14(3) Assist, with the cooperation of counties and
15bureaus, to ensure accurate and timely notices of payments
16and offsets of certified debts.

17(4) Administer the program established in Subch. D
18(relating to delinquent debt intercept program) in accordance
19with this chapter and the requirements of the Treasury Offset
20Program.

21SUBCHAPTER C

22ACCOUNT

23Sec.

246221. Fund and accounts.

256222. Governmental agency payments.

266223. Administrative accounts.

27§ 6221. Fund and accounts.

28There is hereby established within the State Treasury a 
29special fund known as the Delinquent Debt Intercept Fund. Within 
30the fund, the authority shall establish one or more accounts for
 

1each government agency that elects to submit certified debts to 
2the authority for offset against payments to be made by a 
3Federal agency or against State payments to be made by an
4executive agency. Offsets for certified debts received by the
5authority under the program shall be deposited into the account
6of the government agency that certified the final claim upon
7which the offset was made.

8§ 6222. Governmental agency payments.

9On the last Friday of each month, the authority shall pay to
10a government agency that elects to submit certified debts to the
11authority under the program the moneys in the account
12established for the government agency.

13§ 6223. Administrative accounts.

14The authority shall establish within the fund one or more
15administrative accounts. Surcharges imposed by the authority
16under the program shall be deposited into the administrative
17accounts for use by the authority.

18SUBCHAPTER D

19DELINQUENT DEBT INTERCEPT PROGRAM

20Sec.

216231. Federal agreements.

226232. Government agencies agreements.

236233. Placement.

246234. Duration.

256235. Notification of offset.

266236. Removal.

276237. Surcharge.

286238. Application of offsets.

296239. Applicability of existing statutes.

306240. Immunity.

1§ 6231. Federal agreements.

2(a) Federal and Commonwealth offsets.--The authority, in
3cooperation with the office, is authorized to enter into an
4agreement with a Federal agency to participate in the treasury
5offset program for the offset of Commonwealth income tax
6obligations and Federal tax payments. The agreement shall
7provide for the authority to submit the sum of a certified
8Commonwealth income tax obligation and the surcharge imposed by
9the authority for offset against Federal tax payments. The
10agreement shall provide for any debtor notification and remedy
11or other requirements necessary for participation in the
12treasury offset program and shall require the Federal agency or
13Commonwealth to provide the authority with all of the following:

14(1)  The name of the debtor.

15(2)  The last known address of the debtor.

16(3)  The Social Security number or other tax
17identification number of the debtor.

18(4)  The sum of the certified Commonwealth income tax
19obligation and the surcharge.

20(5)  The date on which the certified Commonwealth income
21tax obligation became delinquent.

22(6)  The name, address and telephone number of the
23Commonwealth department to which questions may be directed.

24(7)  Written certification by the Commonwealth of the
25certified Commonwealth income tax obligation.

26(8)  Any other information deemed necessary by the
27authority or the Federal agency.

28(b) Federal and government agency offsets.--The authority,
29in cooperation with the office, shall enter into an agreement
30with a Federal agency to participate in the treasury offset

1program for the offset of any nontax debts owed to a Federal
2agency and of any certified debts owed to a government agency.
3The agreement shall provide for the Federal agency to submit the
4sum of a nontax debt owed to a Federal agency and the surcharge
5imposed by the authority for offset against State payments to be
6made by an executive agency and provide for the authority to
7submit the sum of a certified debt owed to a government agency
8and the surcharge imposed by the authority for offset against
9Federal payments to be made by a Federal agency. The agreement
10shall provide for any debtor notification and remedy or other
11requirements necessary for participation in the treasury offset
12program and shall require the Federal agency or government
13agency to provide the authority with all of the following:

14(1) The name of the debtor.

15(2)  The last known address of the debtor.

16(3)  The Social Security number or other tax
17identification number of the debtor.

18(4)  The sum of the nontax debt or certified debt and the
19surcharge.

20(5)  The date on which the nontax debt or certified debt
21became delinquent.

22(6)  The name, address and telephone number of the
23Federal agency owed the nontax debt or of the government
24agency owed the certified debt.

25(7)  Written certification by the government official or
26governing body certifying the nontax debt or certified debt.

27(8)  Any other information deemed necessary by the
28authority or the Federal agency.

29§ 6232. Government agencies agreements.

30The authority shall enter into an agreement with the office
 

1on behalf of an executive agency and may, in cooperation with 
2the office, enter into an agreement with a government agency, 
3which is not an executive agency, for the offset of certified 
4debts owed to the government agency. The agreement shall provide 
5for the government agency to submit the sum of a certified debt 
6owed to the government agency and the surcharge imposed by the 
7authority for offset against Federal payments to be made by a 
8Federal agency in accordance with an agreement entered into 
9under 6231(b) (relating to Federal agreements) and against State 
10payments to be made by an executive agency. The agreement shall 
11provide for any debtor notification and remedy or other 
12requirements necessary for participation in the program and in 
13the treasury offset program and shall require the government 
14agency to provide the authority with all of the following:

15(1) The name of the debtor.

16(2)  The last known address of the debtor.

17(3)  The Social Security number or other tax
18identification number of the debtor.

19(4)  The sum of the certified debt and the surcharge.

20(5)  The date on which the certified debt became
21delinquent.

22(6)  The name, address and telephone number of the
23government agency owed the certified debt.

24(7)  Written annual certification by the government
25official or by the governing body, which is certifying the
26certified debt.

27(8)  Any other information deemed necessary by the
28authority or the Federal agency or which is required for
29participation in the treasury offset program.

30§ 6233. Placement.

1(a) Certified Commonwealth income tax obligations.--Upon
2receiving a request from the office, the authority shall attempt
3to offset the following:

4(1) the sum of:

5(i)  the certified Commonwealth income tax
6obligation; and

7(ii)  the surcharge imposed by the authority; against

8(2)  any Federal tax payments to be made by a Federal
9agency.

10(b) Federal nontax debt and certified debt.--Upon receiving
11a request from a Federal agency or a government agency, the 
12authority shall attempt to offset the following:

13(1) the sum of:

14(i)  the certified debt owed to a government agency 
15or the nontax debt owed to a Federal agency; and

16(ii)  the surcharge imposed by the authority; against

17(2)  any Federal payments to be made by a Federal agency
18and any State payments to be made by an executive agency.

19(c) Effect of placement.--A certified debt shall not accrue
20additional interest or penalties during the period the authority
21attempts to obtain offset of the certified debt. If a certified
22debt is removed from the program in accordance with section 6236 
23(relating to removal), additional interest and penalties shall 
24accrue as provided by law from the date the certified debt is 
25removed from the program.

26If a certified debt is removed from the program in accordance 
27with section 6236, additional interest and penalties shall 
28accrue as provided by law from the date the authority receives 
29notice from the governmental agency of its intent to remove the
30certified debt from the program.

1§ 6234. Duration.

2(a) Federal debts.--Unless otherwise stated in the agreement 
3required by section 6231(b) (relating to Federal agreements), 
4the authority shall continue to attempt to offset a nontax debt 
5owed to a Federal agency against a State payment to be made by
6an executive agency until one of the following occurs:

7(1)  The nontax debt is paid in full.

8(2)  The Federal agency notifies the authority to cease
9attempts to offset the nontax debt.

10(b) Commonwealth income tax obligations.--The authority
11shall continue to attempt to offset a certified Commonwealth
12income tax obligation against a Federal tax payment to be made
13by a Federal agency until one of the following occurs:

14(1)  The certified Commonwealth income tax obligation is
15paid in full.

16(2)  The office notifies the authority to cease attempts
17to offset the certified Commonwealth income tax obligation.

18(c) Government debts.--The authority shall continue to
19attempt to offset a certified debt owed to a government agency
20against a Federal payment to be made by a Federal agency or
21against a State payment to be made by an executive agency until
22one of the following occurs:

23(1)  The certified debt is paid in full.

24(2)  The government agency notifies the authority to
25cease attempts to offset the certified debt.

26§ 6235. Notification of offset.

27Upon an offset being made, the authority shall notify the
28payee of all of the following:

29(1)  The date the offset occurred.

30(2)  The type and amount of the payment that was offset.

1(3)  The identity of the Federal agency or government
2agency which requested the offset.

3(4)  The name, address and telephone number of the
4Federal agency or of the government agency, which requested
5the offset.

6(5)  Any other information required for participation in
7the treasury offset program.

8§ 6236. Removal.

9(a) Federal debts.--Unless otherwise stated in the agreement 
10required under section 6231(b) (relating to Federal agreements),
11a Federal agency may at any time request the authority to remove
12a nontax debt from the program.

13(b) Government debts.--

14(1)  Except as provided in paragraph (2), a government
15agency may at any time request the authority to remove a
16certified debt from the program.

17(2)  If a government agency elects to remove a certified
18debt which is a property tax claim, the government agency
19shall notify the appropriate bureau and the election shall
20become effective on January 1 of the following calendar year.

21§ 6237. Surcharge.

22The authority shall establish and impose a surcharge on each
23offset made against a Federal tax payment or Federal payment to
24be made by a Federal agency and on each offset made against a 
25State payment to be made by an executive agency. The surcharge
26shall be a uniform percentage no more than is sufficient to
27fully fund the operation of the authority.

28§ 6238. Application of offsets.

29Offsets shall be applied with respect to each debtor in the
30following order:

1(1)  The surcharge imposed by the authority for an
2offset.

3(2)  The certified Commonwealth tax obligation.

4(3)  The certified debt owed to a government agency in
5the date order the certified debt was received by the
6authority.

7(4)  The nontax debt owed to a Federal agency.

8§ 6239. Applicability of existing statutes.

9(a) Right-to-Know Law.--The act of February 14, 2008 (P.L.6, 
10No.3), known as the Right-to-Know Law, shall not apply to the
11program. Data, records and files containing information related
12to a debtor and which are utilized for the program shall be
13deemed confidential and privileged.

14(b) Tax Reform Code of 1971.--The restrictions on the 
15sharing of information gained by the Department of Revenue under 
16the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform 
17Code of 1971, are inapplicable to the share of that information 
18by the Department of Revenue with the authority insofar as the 
19information is necessary to accomplish the program.

20(c) Court-ordered child support obligations.--An 
21interception or offset of a Federal payment or a State payment
22for a court-ordered child support obligation shall take priority
23over an offset made by the authority for a certified
24Commonwealth tax obligation, a certified debt owed to a
25government agency or a nontax debt owed to a Federal agency.

26§ 6240. Immunity.

27The authority shall be immune from suit by debtors as to the
28validity of a nontax debt owed a Federal agency, of a certified
29Commonwealth income tax obligation owed the Commonwealth or of a
30certified debt owed a government agency.

1SUBCHAPTER E

2EXECUTIVE AGENCIES

3Sec.

46251. Office of the Budget.

56252. Executive agencies.

66253. Certification and placement.

76254. Duration of placement.

86255. Collection of information.

9§ 6251. Office of the Budget.

10(a) Review.--If the office entered into an agreement
11relating to participation of the Commonwealth in the treasury
12offset program under section 6231, the office shall review each
13type of claim imposed, charged or collected by an executive
14agency and each type of State payment made by an executive
15agency to determine the appropriate time for the type of claim
16or type of State payment to be added to the program.

17(b) Determination.--If the office determines that a type of 
18claim or type of State payment is technically capable of being
19added to the program, the office shall notify the executive
20agency which is responsible by law for the collection of the
21type of claim or for making the type of payment.

22§ 6252. Executive agencies.

23(a) Commonwealth income tax obligations.--The Department of
24Revenue shall, by Wednesday of each week, determine if each
25unpaid or uncollected Commonwealth income tax obligation is a
26final Commonwealth income tax obligation as of the previous
27Friday. If the Department of Revenue determines that the
28Commonwealth income tax obligation is a final Commonwealth
29income tax obligation, the Department of Revenue shall notify
30the office of the final Commonwealth income tax obligation

1within 48 hours of its determination. The notice shall be in
2form and manner as required by the office.

3(b) Claims.--Upon being notified by the office under section 
46251 (relating to office of the budget), each executive agency
5which is responsible by law for the collection of a claim shall,
6by the Wednesday of each week, determine if each unpaid or
7uncollected claim is a final claim as of the previous Friday. If
8the executive agency determines that the claim is a final claim,
9the executive agency shall notify the office of the final claim
10within 48 hours of its determination. The notice shall be in
11form and manner as required by the office.

12§ 6253. Certification and placement.

13(a) Final Commonwealth income tax obligations.--Upon receipt
14of a notice under section 6252(a) (relating to executive 
15agencies), the office shall certify the final Commonwealth 
16income tax obligation as a certified final income tax obligation 
17owed to the Commonwealth and request the authority to attempt to 
18obtain offset of the certified Commonwealth income tax 
19obligation under the program. The request and the information 
20relating to the certified Commonwealth income tax obligation 
21shall be in the form and manner required by the authority.

22(b) Final claims.--Upon receipt of a notice under section 
236252(b), the office shall certify the final claim as a certified
24debt owed to the Commonwealth and request the authority to
25attempt to obtain offset of the certified debt under the
26program. The request and the information relating to the
27certified debt shall be in the form and manner required by the
28authority.

29§ 6254. Duration of placement.

30The office shall request the authority to attempt to obtain

1offset of the certified Commonwealth income tax obligation or
2certified debt until one of the following occurs:

3(1)  The certified Commonwealth income tax obligation or
4certified debt is paid in full.

5(2)  Upon good cause shown, the secretary requests the
6certified Commonwealth income tax obligation or certified
7debt be removed from the program.

8§ 6255. Collection of information.

9An executive agency shall collect and transmit to the office
10the tax identification number of each person with which it
11contracts for supply, service or construction under 62 Pa.C.S.
12(relating to procurement). The office may not, 60 days after the
13effective date of this section, submit a voucher to the Treasury
14Department for payment unless the tax identification number of
15the contractor is on record with the office.

16SUBCHAPTER F

17NONEXECUTIVE GOVERNMENTAL AGENCIES

18Sec.

196271. Certain government agencies.

206272. Certification and placement.

216273. Duration of placement.

226274. Tax claim bureaus.

23§ 6271. Certain government agencies.

24The governing body of a government agency which is not an
25executive agency may enter into an agreement with the authority
26to submit certified debts owed to the government agency to the
27authority for offset against Federal payments to be made by a
28Federal agency in accordance with an agreement entered into
29under section 6232(b) (relating to government agencies
30agreements) or against State payments to be made by an executive

1agency under the program.

2§ 6272. Certification and placement.

3(a)  General rule.--Upon entering into an agreement with the
4authority in accordance with section 6271 (relating to certain
5government agencies), if the governing body elects for property
6tax claims reported to a bureau after January 1, 2016, to be
7included in the program, the governing body shall certify each
8final claim which it elects to be included in the program as a
9debt owed to the government agency. Upon certification, the
10government agency shall request the authority to attempt to
11obtain offset of the certified debt under the program.
12Certification and notification under this subsection must occur
13at least 30 days prior to the date of sale under section 601(a)
14of the act for each property tax claim. The request and the
15information relating to the certified debt shall be in the form
16and manner required by the authority.

17(b)  Property tax debts.--Upon entering into an agreement
18with the authority in accordance with section 6271, the
19governing body shall certify each final claim which is a
20property tax debt which it elects to be included in the program
21as a debt owed to the government agency. Upon certification, the
22government agency shall notify the appropriate bureau and shall
23request the authority to attempt to obtain offset of the
24certified debt under the program. The request and the
25information relating to the certified debt shall be in the form
26and manner required by the authority.

27(c)  Existing property tax claims.--Upon entering into an
28agreement with the authority in accordance with section 6271, if
29a governing body elects for property tax claims which have been
30reported to a bureau under section 306 of the act prior to April

130, 2015, to be included in the program, the governing body
2shall certify the property tax debt as a debt owed to the
3government agency. Upon certification, the governing body shall
4request the authority to attempt to obtain offset of the
5certified debt under the program. Certification and notification
6under this subsection must occur at least 30 days prior to the
7date of sale under section 601(a) of the act for each property
8tax claim. The request and information relating to the certified
9debt shall be in the form and manner required by the authority.

10§ 6273. Duration of placement.

11A government agency may request the authority to attempt to
12obtain offset of the certified debt until one of the following
13occurs:

14(1) The certified debt is paid in full.

15(2)  The government agency requests the certified debt be
16removed from the program.

17§ 6274. Tax claim bureaus.

18(a)  Stay.--If a bureau receives notice under section 6272(b) 
19or (c) (relating to certification and placement), the effect of
20the notice shall operate as a stay of any action of the bureau
21under the act for the certified claim.

22(b)  Termination.--If a bureau receives notice under section 
236236(b), the effect of the notice shall operate as a termination 
24of the stay and the bureau shall resume procedures under the act
25regarding the certified debt.

26Section 2.  This act shall take effect immediately.