Regular Session 2017-2018 House Bill 0453 P.N. 1241

PRIOR PRINTER'S NO. 474

PRINTER'S NO. 1241

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

453

Session of

2017

INTRODUCED BY RYAN, CUTLER, DUNBAR, DUSH, GABLER, GROVE,

JOZWIAK, MILLARD, SAYLOR, SCHWEYER, WARD, CORR, ZIMMERMAN,

PHILLIPS-HILL, SOLOMON AND STAATS, FEBRUARY 13, 2017

AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF

REPRESENTATIVES, AS AMENDED, APRIL 4, 2017

AN ACT

Amending the act of April 9, 1929 (P.L.343, No.176), entitled,

as amended, "An act relating to the finances of the State

government; providing for the settlement, assessment,

collection, and lien of taxes, bonus, and all other accounts

due the Commonwealth, the collection and recovery of fees and

other money or property due or belonging to the Commonwealth,

or any agency thereof, including escheated property and the

proceeds of its sale, the custody and disbursement or other

disposition of funds and securities belonging to or in the

possession of the Commonwealth, and the settlement of claims

against the Commonwealth, the resettlement of accounts and

appeals to the courts, refunds of moneys erroneously paid to

the Commonwealth, auditing the accounts of the Commonwealth

and all agencies thereof, of all public officers collecting

moneys payable to the Commonwealth, or any agency thereof,

and all receipts of appropriations from the Commonwealth,

authorizing the Commonwealth to issue tax anticipation notes

to defray current expenses, implementing the provisions of

section 7(a) of Article VIII of the Constitution of

Pennsylvania authorizing and restricting the incurring of

certain debt and imposing penalties; affecting every

department, board, commission, and officer of the State

government, every political subdivision of the State, and

certain officers of such subdivisions, every person,

association, and corporation required to pay, assess, or

collect taxes, or to make returns or reports under the laws

imposing taxes for State purposes, or to pay license fees or

other moneys to the Commonwealth, or any agency thereof,

every State depository and every debtor or creditor of the

Commonwealth," in department of the Auditor General, further

providing for audits of agencies receiving State aid.

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The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 403 of the act of April 9, 1929 (P.L.343,

No.176), known as The Fiscal Code, is amended to read:

Section 403. Audits of Agencies Receiving State Aid.--The

Department of the Auditor General shall have the power, and its

duty shall be, to audit the accounts and records of every

person, association, corporation, and public agency, receiving

an appropriation of money, payable out of any fund in the State

Treasury, or entitled to receive any portion of any State tax

for any purpose whatsoever, as far as may be necessary to

satisfy the department that the money received was expended or

is being expended for no purpose other than that for which it

was paid. Copies of all such audits shall be furnished to the

Governor.

If at any time the department shall find that any money

received by any person, association, corporation, or public

agency, has been expended for any purpose other than that for

which it was paid, it shall forthwith notify the Governor, and

shall decline to approve any further requisition for the payment

of any appropriation, or any further portion of any State tax,

to such person, association, corporation or public agency, until

an amount equal to that improperly expended shall have been

expended for the purpose for which the money improperly expended

was received from the State Treasury.

Any person, association, corporation or public agency being

audited under this section shall respond to the audit within 120

days. Failure to respond to an audit within 120 days will result

in a suspension of any appropriation to the person, association,

corporation or public agency.

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IF AN AUDIT COMPLETED BY THE DEPARTMENT UNDER THIS SECTION

MAKES RECOMMENDATIONS, ANY PERSON, ASSOCIATION, CORPORATION, OR

PUBLIC AGENCY BEING AUDITED SHALL SUBMIT A RESPONSE TO THE

DEPARTMENT DETAILING ADOPTION OF SUCH RECOMMENDATIONS, OR THE

REASON WHY RECOMMENDATIONS HAVE NOT BEEN ADOPTED, WITHIN ONE

HUNDRED AND TWENTY BUSINESS DAYS OF THE PUBLICATION OF THE

AUDIT. THE DEPARTMENT SHALL PROVIDE NOTICE TO THE SUBJECT OF AN

AUDIT SIXTY BUSINESS DAYS AFTER THE DATE OF THE AUDIT'S

PUBLICATION THAT FUTURE APPROPRIATIONS COULD BE DENIED FOR THE

PERSON, ASSOCIATION, CORPORATION, OR PUBLIC AGENCY IF A RESPONSE

IS NOT MADE.

UPON RECEIVING A RESPONSE TO AN AUDIT, THE DEPARTMENT SHALL

PROVIDE THE GOVERNOR AND THE CHAIRPERSON AND MINORITY

CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE SENATE AND

THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE APPROPRIATIONS

COMMITTEE OF THE HOUSE OF REPRESENTATIVES THE RESPONSE

ACCOMPANIED BY ANY COMMENTS THE DEPARTMENT MAY WISH TO SUBMIT.

THE GOVERNOR AND THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE

APPROPRIATIONS COMMITTEE OF THE SENATE AND THE CHAIRPERSON AND

MINORITY CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE

HOUSE OF REPRESENTATIVES MAY CONSIDER THIS RESPONSE WHEN

DETERMINING WHETHER FUTURE APPROPRIATIONS TO THE PERSON,

ASSOCIATION, CORPORATION, OR PUBLIC AGENCY WILL BE CONSIDERED.

IF THE PERSON, ASSOCIATION, CORPORATION, OR PUBLIC AGENCY

DOES NOT RESPOND TO THE DEPARTMENT WITHIN ONE HUNDRED AND TWENTY

BUSINESS DAYS FROM THE DATE OF THE PUBLICATION OF THE AUDIT, THE

DEPARTMENT SHALL NOTIFY THE GOVERNOR AND THE CHAIRPERSON AND

MINORITY CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE

SENATE AND THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE

APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES. THE

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GOVERNOR AND THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE

APPROPRIATIONS COMMITTEE OF THE SENATE AND THE CHAIRPERSON AND

MINORITY CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE

HOUSE OF REPRESENTATIVES MAY CONSIDER A FAILURE TO RESPOND TO

THE AUDIT WHEN DETERMINING WHETHER FUTURE APPROPRIATIONS TO THE

PERSON, ASSOCIATION, CORPORATION, OR PUBLIC AGENCY WILL BE

CONSIDERED.

Section 2. This act shall take effect in 60 days.

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