HOUSE AMENDED
PRIOR PRINTER'S NOS. 540, 911
PRINTER'S NO. 1081
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
527
Session of
2017
INTRODUCED BY AUMENT, REGAN, SCARNATI, McGARRIGLE, ARGALL,
VOGEL, GORDNER, RESCHENTHALER, VULAKOVICH, FOLMER, MARTIN,
DiSANTO, WARD, YUDICHAK, RAFFERTY, MENSCH, STEFANO, SCAVELLO,
BARTOLOTTA, BROWNE AND BROOKS, MARCH 20, 2017
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
JULY 8, 2017
AN ACT
Amending the act of April 9, 1929 (P.L.177, No.175), entitled,
"An act providing for and reorganizing the conduct of the
executive and administrative work of the Commonwealth by the
Executive Department thereof and the administrative
departments, boards, commissions, and officers thereof,
including the boards of trustees of State Normal Schools, or
Teachers Colleges; abolishing, creating, reorganizing or
authorizing the reorganization of certain administrative
departments, boards, and commissions; defining the powers and
duties of the Governor and other executive and administrative
officers, and of the several administrative departments,
boards, commissions, and officers; fixing the salaries of the
Governor, Lieutenant Governor, and certain other executive
and administrative officers; providing for the appointment of
certain administrative officers, and of all deputies and
other assistants and employes in certain departments, boards,
and commissions; and prescribing the manner in which the
number and compensation of the deputies and all other
assistants and employes of certain departments, boards and
commissions shall be determined," establishing the Office of
State Inspector General.
The General Assembly finds and declares that:
(1) The prevention of fraud, waste, abuse and corruption
in the administration of State government agencies is an
important responsibility of the Commonwealth.
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(2) The prevention of waste, fraud, abuse and corruption
in the administration of State government depends in part on
the development, implementation and enforcement of sound
policies and procedures to that end.
(3) Each State agency should exercise constant vigilance
and firmly commit to the implementation and enforcement of
such policies and procedures.
(4) The establishment of a full-time program of
investigation and performance review to provide increased
accountability and oversight over State agencies best helps
deter and identify waste, fraud, abuse and illegal acts.
(5) The statutory creation of the Office of State
Inspector General to conduct investigations, inspections and
other reviews in accordance with those professional standards
that relate to the fields of investigation in governmental
environments is necessary to achieve these goals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of April 9, 1929 (P.L.177, No.175), known
as The Administrative Code of 1929, is amended by adding an
article to read:
ARTICLE V-A
OFFICE OF STATE INSPECTOR GENERAL
Section 501-A. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Executive agency." As defined in section 102 of the act of
act of October 15, 1980 (P.L.950, No.164), known as the
Commonwealth Attorneys Act.
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"Office." The Office of State Inspector General.
Section 502-A. Office of State Inspector General.
(a) Establishment.--The Office of State Inspector General is
established.
(b) Appointment.--Within 90 days of the effective date of
this section, the Governor shall appoint a State Inspector
General who shall serve concurrent with the Governor's term of
office. Compensation shall be set by the Executive Board
established under section 204.
(c) Qualifications.--The State Inspector General shall be
selected without regard to political affiliation on the basis of
integrity, capability for strong leadership and demonstrated
ability in accounting, auditing, financial analysis, law,
management analysis, public administration, investigation or
criminal justice administration or other appropriate fields.
(d) Limitation.--The State Inspector General may not seek
election to a political office during his or her tenure as State
Inspector General.
(e) Removal.--The State Inspector General may be removed by
the Governor , INCLUDING for cause.
Section 503-A. Powers, purpose and duties.
(a) Powers.--The State Inspector General shall have the
power to:
(1) Make an investigation and report relating to the
administration of a program and operation of an executive
agency that the State Inspector General determines is
necessary. If the State Inspector General determines that a
report should be issued, the State Inspector General may
consult with the Office of General Counsel or the Attorney
General before issuing the report to insure against an
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adverse impact on a grand jury proceeding or prosecution
being conducted by a law enforcement agency.
(2) Request information or assistance necessary for
carrying out the duties and responsibilities under this
article from the Federal Government, an executive agency or a
local government agency or a unit of a Federal, State or
local government agency.
(3) Require and obtain, by written notice from an
officer and employee of an executive agency, information,
documents, reports, answers, records, accounts, papers and
other necessary data and documentary evidence.
(4) Have direct and prompt access to the heads of
executive agencies if necessary for a purpose pertaining to
the performance of functions and responsibilities under this
article.
(5) Select, appoint and employ individuals necessary for
carrying out the functions, powers and duties of the office.
The employees shall be employed in accordance with current
procedures of the Office of Administration and may be
assigned by the State Inspector General to a designated
executive agency.
(b) Purpose.--The purpose of the Office of State Inspector
General is as follows:
(1) To deter, detect, prevent and eradicate fraud,
waste, misconduct and abuse in a program, operation and
contracting of an executive agency.
(2) To keep the head of an executive agency and the
Governor fully informed about a problem and deficiency
relating to the operation or administration of a program or
contracts entered into by an executive agency.
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(3) To provide leadership, coordination and control over
satellite Inspector General Offices in a designated executive
agency to ensure a coordinated and efficient administration
of duties and use of staff. The existing Office of Inspector
General in the Department of Transportation shall continue as
a satellite Inspector General Office. Each satellite
Inspector General Office in an executive agency shall report
to and follow the direction of the State Inspector General.
(c) Duties.--The State Inspector General shall:
(1) Inspect, evaluate, investigate and review the
activities, records and individuals with contracts,
procurements, grants, agreements and other financial
arrangements undertaken by an executive agency for the
purposes of identifying fraud, waste, misconduct or abuse.
(2) Conduct civil and administrative investigations of a
program or operation of an executive agency .
(3) Make referrals to the Auditor General for the audit
of the economy, efficiency and effectiveness of an executive
agency's operations and functions and conduct reviews of the
executive agency's compliance with the performance
measurement system.
(4) Review the reliability and validity of the
information provided by an executive agency's performance
measures and standards.
(5) Provide information and evidence that relates to
criminal acts discovered during the course of an
investigation into an executive agency to appropriate law
enforcement officials.
(6) Receive and investigate complaints from a source or
upon the State Inspector General's own initiative concerning
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alleged abuses, frauds and service deficiencies, including
deficiencies in the operation and maintenance of an executive
agency facility.
(7) Engage in prevention activities, including, but not
limited to, review of legislation, rules, regulations,
policies, procedures and transactions, training and
education.
(8) Refer matters for further civil, criminal and
administrative action to appropriate administrative and
prosecutorial agencies.
(9) Conduct joint investigations and projects with other
oversight or law enforcement agencies that are consistent
with the powers and duties contained under this article .
(10) Recommend remedial actions to be taken by an
executive agency to overcome or correct operating or
maintenance deficiencies and inefficiencies that were
identified by the State Inspector General.
(11) Issue public reports.
(12) Maintain information regarding the cost of
investigations and cooperate with appropriate administrative
and prosecutorial agencies in recovering the costs from
nongovernmental entities involved in willful misconduct.
(13) Perform other functions necessary to effectuate
this article.
Section 504-A. Request for information.
(a) Duty.--Upon request of the State Inspector General for
information or assistance, an executive agency must within 10
days furnish the information and assistance to the State
Inspector General or an authorized designee.
(b) Report.--If information or assistance requested under
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subsection (a) is, in the judgment of the State Inspector
General, unreasonably refused or not provided, the State
Inspector General may report the circumstances to the head of
the agency and the Office of General Counsel for appropriate
action.
Section 505-A. Subpoenas and witness fees.
(a) Authorization.--In accordance with the powers under
section 503-A(a) and duties under section 503-A(c), the State
Inspector General may issue a subpoena relating to any matter
pertinent to an examination to a person under the State
Inspector General's jurisdiction or to an individual or a person
receiving services from or through an executive agency. If a
person fails or refuses to obey a subpoena, the State Inspector
General may petition a court of competent jurisdiction to enter
an order compelling the witness to appear and testify or produce
documentary evidence. Failure to obey the court order shall be
punishable as contempt of court.
(b) Form and effect.--A subpoena under subsection (a) shall
be in substantially the same form and have the same force and
effect as a subpoena issued by a court of common pleas. The
State Inspector General shall have the benefit of the process of
the appropriate court of common pleas if necessary to enforce a
subpoena.
(c) Confidentiality.--A subpoena issued under this section
must clearly indicate on the face of the subpoena that the
subpoena is issued in connection with a confidential proceeding
and a breach of confidentiality by the person subpoenaed may
result in a civil penalty or misdemeanor.
(d) Fees.--Witnesses subpoenaed under this section shall be
compensated under 42 Pa.C.S. § 5903 (relating to compensation
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and expenses of witnesses).
Section 506-A. Criminal charges.
Notwithstanding any other provision of law, the State
Inspector General shall have the power to investigate and may
file criminal charges for a violation of any of the following:
(1) Section 481 of the act of June 13, 1967 (P.L.31,
No.21), known as the Human Services Code.
(2) Section 1408 of the Human Services Code.
(3) 18 Pa.C.S. § 7313 (relating to buying or exchanging
Federal food order coupons, stamps, authorization cards or
access devices).
(4) 18 Pa.C.S. § 7314 (relating to fraudulent traffic in
food orders).
Section 507-A . Complaint, disclosure and reprisal.
(a) Complaint.--The State Inspector General may receive and
investigate a complaint or information concerning the possible
existence of an activity in an executive agency constituting any
of the following:
(1) A violation of a law, rule or regulation.
(2) Mismanagement, fraud, waste of funds, abuse of
authority, malfeasance, misfeasance and nonfeasance.
(3) A substantial and specific danger to the public
health and safety.
(b) Disclosure.--No person may take or threaten to take
action against an employee as a reprisal for making a complaint
or disclosing information to the State Inspector General, except
if the complaint was made or the information was disclosed with
the knowledge that the complaint or information was false or
with willful disregard for the truth or falsity of the complaint
or information.
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(c) Protection.--The protections in this article for
employees who report, in good faith, fraud, waste, misconduct,
malfeasance, misfeasance, nonfeasance or abuse shall be in
addition and supplementary to each protection provided by the
act of December 12, 1986 (P.L.1559, No.169), known as the
Whistleblower Law.
Section 508-A . Appropriation.
The appropriation for the office shall be in a separate line
item and shall be under the jurisdiction of the State Inspector
General.
Section 509-A. Report to General Assembly.
By December 31 of each year, the State Inspector General
shall issue an annual report to the Senate and the House of
Representatives. The annual report shall include, at a minimum,
the following:
(1) Information relating to investigations undertaken by
the office, including the number of cases investigated,
categorized by type, with a specific section detailing
investigations conducted within the Department of Human
Services.
(2) An accounting of taxpayer money that was recovered
as a result of the work of the office.
(3) The monetary value that resulted from fraud
prevention activities as a result of the work of the office.
(4) Summaries of performance of each bureau within the
office.
(5) Specific recommendations concerning the improvement
of any State program to further reduce waste, fraud and
abuse.
Section 2. Except as otherwise provided in Article V-A of
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the act:
(1) All activities initiated by the Office of Inspector
General in existence on the effective date of this section
shall continue and remain in full force and effect and may be
completed under Article V-A of the act.
(2) Orders, regulations, rules and decisions which were
made by the Office of Inspector General in existence on the
effective date of this section and which are in effect on the
effective date of this section shall remain in full force and
effect until revoked, vacated or modified under Article V-A
of the act.
(3) Contracts, obligations and collective bargaining
agreements entered into by the Office of Inspector General in
existence on the effective date of this section are not
affected nor impaired by the addition of Article V-A of the
act.
Section 3. This act shall take effect in 60 days.
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