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PRIOR PRINTER'S NO. 76
PRINTER'S NO. 124
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
108
Session of
2021
INTRODUCED BY OWLETT, GAYDOS, SANKEY, THOMAS, IRVIN, GROVE,
RYAN, KAUFFMAN, SAYLOR, BERNSTINE, GLEIM, WEBSTER, WHEELAND
AND B. MILLER, JANUARY 11, 2021
AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, JANUARY 13, 2021
AN ACT
Amending Title 71 (State Government) of the Pennsylvania
Consolidated Statutes, providing for payments by the
Commonwealth IMPROPER PAYMENTS; and establishing Do-Not-Pay
Initiative.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 71 of the Pennsylvania Consolidated
Statutes is amended by adding a part to read:
PART IV
PAYMENTS BY THE COMMONWEALTH
Chapter
35. Do-Not-Pay Initiative
CHAPTER 35
DO-NOT-PAY INITIATIVE
Sec.
3501. Definitions.
3502. Establishment.
3503. Award and payment.
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§ 3501. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commonwealth agency." A department, agency or commission of
the Commonwealth under the policy supervision and control of the
Governor.
"Contractor." A person, including, but not limited to, a
bidder, offeror, loan recipient grantee or lessor, who has
furnished or performed or seeks to furnish or perform goods,
supplies, services, leased space, construction or other activity
with an executive agency.
"Department." The Treasury Department of the Commonwealth.
"Entity." A corporation, joint-stock association, business
trust, limited liability company, sole proprietorship, nonprofit
corporation or Subchapter S corporation.
"Improper payment." A payment made by a Commonwealth agency
that:
(1) exceeds the amount a recipient should have received
from a Commonwealth agency;
(2) is less than the amount a recipient should have
received from the Commonwealth;
(3) makes a payment to a recipient that was ineligible
to receive money from the particular program from the
Commonwealth;
(4) was ineligible;
(5) was duplicative or redundant;
(6) was for a service which was never received; or
(7) was for a service that does not account for or was
not given any of the available credits or the discounts
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available for the service rendered.
"Initiative." The Do-Not-Pay Initiative established under
section 3502 (relating to establishment).
"Office." The Governor's Budget Office.
"Payment." Money expended by the Commonwealth as part of the
operating budget for the Commonwealth.
"Recipient." An individual, contractor or entity.
"Secretary." The Secretary of the Budget of the
Commonwealth.
§ 3502. Establishment.
(a) Initiative establishment.--The Do-Not-Pay Initiative is
established in the department for the purpose of monitoring
improper payments across Commonwealth agencies. As part of the
initiative, the department shall enter into a memorandum of
understanding with the United States Treasury Department to join
the United States Treasury Department's Do Not Pay program.
(b) Operation and assistance.--The office shall assist the
department in the operation of the initiative and ensure the
department has the necessary information from each Commonwealth
agency.
(c) Database.--The initiative shall provide a searchable
database of recipients that are not eligible to receive payment
from the Commonwealth under section 3503 (relating to award and
payment).
(d) Agency use of database.--An agency shall, with the
assistance of the office, utilize the database under subsection
(c) in order to determine eligibility for the awarding and
disbursement of payments.
(e) Information sharing.--A Commonwealth agency shall
provide the department with all information necessary for the
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operation and maintenance of the initiative.
(f) Prohibition.--A Commonwealth agency may not award or
issue payment to a recipient that is listed on the initiative's
database unless the payment is determined by the secretary of
the agency as being necessary and:
(1) The award or payment is for services which cannot be
provided or provided in a timely manner by another entity or
recipient.
(2) The award or payment is required as a condition of
receiving Federal money for programs jointly funded with
Federal and Commonwealth money.
§ 3503. Award and payment.
(a) Procedural review.--A Commonwealth agency shall review
procedures regarding the awarding and payment of money prior to
the awarding or releasing of any payment to verify and determine
eligibility of a recipient for payment or award.
(b) Database review.--In order to verify eligibility under
this section for an award or payment, a Commonwealth agency must
utilize the following databases:
(1) Death certificates maintained by the Division of
Vital Records of the Department of Health.
(2) The Death Master File of the Social Security
Administration.
(3) The Debarment and Suspension List of the Department
of General Services.
(4) The Credit Alert System or Credit Alert Interactive
Voice Response System under the United States Department of
Housing and Urban Development.
(5) The list of excluded individuals and entities under
the Department of Human Services Medicheck List.
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(6) The list of individuals or entities under the
Department of Revenue who are delinquent in payments owed to
the Commonwealth.
(7) The central registry under 23 Pa.C.S. § 4376
(relating to central registry).
(8) Databases used by the Federal Government for the
initiative administered by the United States Department of
the Treasury.
Section 2. This act shall take effect in 365 days.
PART IV
IMPROPER PAYMENTS
CHAPTER.
35. DO-NOT-PAY INITIATIVE.
CHAPTER 35
DO-NOT-PAY INITIATIVE
SEC.
3501. DEFINITIONS.
3502. PARTICIPATION IN INITIATIVE.
§ 3501. DEFINITIONS.
THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
CONTEXT CLEARLY INDICATES OTHERWISE:
"COMMONWEALTH AGENCY." A DEPARTMENT, AGENCY OR COMMISSION OF
THE COMMONWEALTH UNDER THE POLICY SUPERVISION AND CONTROL OF THE
GOVERNOR.
"IMPROPER PAYMENT." A PAYMENT MADE BY A COMMONWEALTH AGENCY
THAT:
(1) EXCEEDS THE AMOUNT A RECIPIENT SHOULD HAVE RECEIVED
FROM A COMMONWEALTH AGENCY;
(2) IS LESS THAN THE AMOUNT A RECIPIENT SHOULD HAVE
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RECEIVED FROM THE COMMONWEALTH;
(3) IS MADE TO A RECIPIENT WHO IS INELIGIBLE TO RECEIVE
THE PAYMENT FROM A PARTICULAR COMMONWEALTH PROGRAM;
(4) IS INELIGIBLE;
(5) IS DUPLICATIVE OR REDUNDANT;
(6) IS FOR A SERVICE WHICH WAS NEVER RECEIVED; OR
(7) IS FOR A SERVICE THAT DOES NOT ACCOUNT FOR OR WAS
NOT GIVEN ANY OF THE AVAILABLE CREDITS OR DISCOUNTS AVAILABLE
FOR THE SERVICE RENDERED.
"INITIATIVE." THE DO-NOT-PAY INITIATIVE ESTABLISHED UNDER
SECTION 5 OF THE IMPROPER PAYMENTS ELIMINATION AND RECOVERY
IMPROVEMENT ACT OF 2012 (PUBLIC LAW 112-248, 126 STAT. 2392).
"PAYMENT." MONEY EXPENDED BY THE COMMONWEALTH AS PART OF THE
OPERATING BUDGET FOR THE COMMONWEALTH.
"SECRETARY." THE SECRETARY OF THE BUDGET OF THE
COMMONWEALTH.
§ 3502. PARTICIPATION IN INITIATIVE.
(A) PARTICIPATION.--A COMMONWEALTH AGENCY THAT MAKES
PAYMENTS BY EXPENDING FEDERAL FUNDS SHALL ENTER INTO A
MEMORANDUM OF UNDERSTANDING WITH THE UNITED STATES TREASURY
DEPARTMENT TO PARTICIPATE IN THE INITIATIVE. THE PARTICIPATION
IN THE INITIATIVE BY A COMMONWEALTH AGENCY SHALL INCLUDE ALL OF
THE FOLLOWING:
(1) THE USE OF THE INITIATIVE'S ONLINE INTERFACE TO
VERIFY THE ACCURACY AND INTEGRITY OF PAYMENTS ISSUED BY THE
COMMONWEALTH AGENCY.
(2) AN ANALYTICAL REVIEW OF THE COMMONWEALTH AGENCY'S
DATA THROUGH THE INITIATIVE TO IMPROVE THE DATA COLLECTED BY
THE COMMONWEALTH AGENCY AND THE INTEGRITY OF PAYMENTS MADE BY
THE COMMONWEALTH AGENCY.
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(B) SCHEDULE.--THE SECRETARY SHALL ESTABLISH A SCHEDULE TO
ENSURE THAT EACH COMMONWEALTH AGENCY UNDER SUBSECTION (A) HAS
ENTERED INTO A MEMORANDUM OF UNDERSTANDING TO PARTICIPATE IN THE
INITIATIVE WITHIN TWO YEARS OF THE EFFECTIVE DATE OF THIS
SECTION.
(C) ANNUAL REPORT.--A COMMONWEALTH AGENCY THAT PARTICIPATES
IN THE INITIATIVE SHALL PROVIDE AN ANNUAL REPORT ABOUT THE
COMMONWEALTH AGENCY'S PARTICIPATION IN THE INITIATIVE TO THE
FOLLOWING:
(1) THE SECRETARY.
(2) THE OFFICE OF STATE INSPECTOR GENERAL.
(3) THE DEPARTMENT OF AUDITOR GENERAL.
(4) THE MEMBERS OF THE GENERAL ASSEMBLY.
(5) THE LEGISLATIVE BUDGET AND FINANCE COMMITTEE.
(D) CONTENTS OF REPORT.--THE ANNUAL REPORT UNDER SUBSECTION
(C) SHALL INCLUDE ANALYTICAL DATA OBTAINED BY A COMMONWEALTH
AGENCY AS A RESULT OF PARTICIPATING IN THE INITIATIVE,
INCLUDING, BUT NOT LIMITED TO, ALL OF THE FOLLOWING:
(1) THE TOTAL NUMBER OF IMPROPER PAYMENTS IDENTIFIED BY
THE COMMONWEALTH AGENCY AFTER PARTICIPATION IN THE
INITIATIVE.
(2) THE TOTAL NUMBER OF IMPROPER PAYMENTS PREVENTED BY
THE COMMONWEALTH AGENCY AS A RESULT OF PARTICIPATING IN THE
INITIATIVE.
(3) THE TOTAL AMOUNT OF IMPROPER PAYMENTS IDENTIFIED AND
PREVENTED BY THE COMMONWEALTH AGENCY AFTER PARTICIPATING IN
THE INITIATIVE.
(4) THE SAVINGS REALIZED BY THE COMMONWEALTH AS A RESULT
OF THE COMMONWEALTH AGENCY'S PARTICIPATION IN THE INITIATIVE.
(5) ANY WEAKNESS IN THE INTERNAL FINANCIAL CONTROLS OF
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THE COMMONWEALTH AGENCY IDENTIFIED THROUGH PARTICIPATION IN
THE INITIATIVE.
(6) ANY CHANGES MADE TO PROGRAMS OPERATED BY THE
COMMONWEALTH AGENCY TO IMPROVE PAYMENT ACCURACY AND INTEGRITY
RESULTING FROM PARTICIPATION IN THE INITIATIVE.
(7) RECOMMENDATIONS TO IMPROVE THE COMMONWEALTH AGENCY'S
PAYMENT ACCURACY AND INTEGRITY, INCLUDING LEGISLATIVE OR
REGULATORY CHANGES REQUIRED TO PREVENT IMPROPER PAYMENTS AND
IMPROVE PAYMENT ACCURACY AND INTEGRITY.
SECTION 2. THIS ACT SHALL TAKE EFFECT IN 90 DAYS.
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