Trial Engrossment of Amendment A00027 to House Bill 0108 P.N. 0076, Regular Session 2021-2022

A00027

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 AND

WHEELAND, JANUARY 11, 2021

REFERRED TO COMMITTEE ON STATE GOVERNMENT, JANUARY 11, 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.

§ 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.

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

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.

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

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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