PRINTER'S NO. 1182

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1041

Session of

2019

INTRODUCED BY RIGBY, BENNINGHOFF, BERNSTINE, ROTHMAN, RYAN,

MASSER, PICKETT, OBERLANDER AND NEILSON, APRIL 2, 2019

REFERRED TO COMMITTEE ON APPROPRIATIONS, APRIL 2, 2019

hereby enacts as follows:

Section 1. The act of March 30, 1811 (P.L.145, No.99),

entitled "An act to amend and consolidate the several acts

relating to the settlement of the public accounts and the

payment of the public monies, and for other purposes," is

repealed:

An act to amend and consolidate the several acts relating to the

settlement of the public accounts and the payment of the

public monies, and for other purposes.

have power to commit such person to the common gaol of the

county wherein the seat of government shall then be, there to be

holden, until such person comply with this act or be otherwise

discharged by due course of law.

Section VI. And be it further enacted by the authority

aforesaid, That the auditor-general shall draw his warrant on

the state treasurer for the amount or balance of all accounts

settled agreeably to this act, which are in the nature of claims

on the commonwealth, and for which there is an appropriation by

law, and all accounts and vouchers, and other papers appurtenant

thereto shall be filed in the office of the auditor-general,

the commonwealth and there is no appropriation of money to pay

the same, it shall be the duty of the auditor-general and state

treasurer to adjust and settle the accounts of such claims as

other accounts, and the auditor-general shall immediately report

the same to the legislature, if in session, but if not in

session, then during the first week of the next ensuing session.

Section VIII. And be it further enacted by the authority

aforesaid, That the state treasurer shall pay all grants,

salaries, annuities, gratuities, and pensions established by

law, and make all other payments which are or shall be so fixed

Provided however, That in relation to pensions payable under

decrees of courts, the state treasurer may, if he deems it

proper, refer the said decrees or certificates back to the court

for revision, stating his reasons therefor: And also provided,

That the State Employees' Retirement Board, on behalf of the

Commonwealth, and the treasurer or other officer in charge of

payrolls for any county, city, town or other political

subdivision may make systematic investments in mutual funds,

savings accounts or government bonds or make premium payments on

life insurance or annuity contracts to any institution or

company licensed and authorized in accordance with the rules and

and may subsequently, with the consent of the employe, purchase

government bonds or purchase life insurance contracts, annuity

contracts, or mutual fund shares from any life underwriter or

mutual fund salesman duly licensed by the State who represents

any company licensed to contract such business in this State or

make deposits on behalf of the employe in savings accounts in

institutions authorized to accept such deposits.

The auditor, controller, or other fiscal officer of any

county, city, town or other political subdivision that funds a

deferred compensation program for its employes under the

shall have the power and it shall be his duty to audit the scope

and effectiveness of any program and any fund created under the

provisions of this act.

(b) Notwithstanding the provisions of the act of April 25,

1929 (P.L.723, No.315), entitled "An act regulating the

investment of funds by administrative departments, boards,

commissions, and officers of the State Government," for the

purpose of funding a deferred compensation program for employes

authorized by section VIII, the treasurer or officer in charge

of payrolls for any county, city, town or other political

subdivision may, with the consent of the employe whose

authorized to accept such deposits.

(c) As used in this section, "employe" means anyone who

renders service for the county, city, town or other political

subdivision, including appointive or elective service or

services rendered by an independent contractor for which

compensation is paid: Provided however, That any county, city,

town or other political subdivision may limit participation in

its deferred compensation program to only those employes who are

subject to routine payroll deductions.

(d) Each county, city, town or other political subdivision

of the deferred compensation program may contract with a private

corporation or institution for providing consolidated billing

and other administrative services.

(e) Such deferred compensation program shall be in addition

to, and not a part of, any other retirement benefit program

provided by law for employes of the county, city, town, or other

political subdivision. Income deferred under programs authorized

by this act shall continue to be included as regular

compensation for the purpose of computing deductions for employe

contributions to retirement and pension programs and for the

purpose of computing retirement and pension benefits earned by

(f) For purposes of this section, an employe cannot defer

more annual gross income than the percentage and amount

permitted by Federal law including any permissible Federal

"catch-up" provision and any future changes in percentage and

amount or "catch-up" provisions by Federal law.

(g) Nothing herein contained shall be construed to prohibit

any county, city, town or other political subdivision from self-

administering a deferred compensation program.

Section VIII.2.--(a) The Commonwealth of Pennsylvania, and

any political subdivision or municipal authority of this

appointed officers and employes who perform services for the

Commonwealth, a political subdivision or municipal authority.

(b) As used in this section, "Commonwealth officer" or

"employe" means:

(1) any individual who is an elected or appointed official

of the Commonwealth;

(2) any individual employed by the Commonwealth; or

(3) any individual employed by the Commonwealth where it is

deemed an employer-employe relationship exists. The State

Employees' Retirement Board shall make the final determination

of who is a Commonwealth officer or employe.

for a political subdivision or municipal authority shall be

established and administered by the governing body of the

political subdivision or municipal authority.

(e) In order to establish and administer eligible deferred

compensation plans, the powers and duties of the State

Employees' Retirement Board or the governing body of a political

subdivision or municipal authority shall include, but not be

limited to:

(1) Entering into written agreements with one or more

financial or other organizations to administer the deferred

deferred compensation plan shall conform with section 457 and

any other provisions of the Internal Revenue Code of 1986

(Public Law 99-514, 26 U.S.C. § 457) applicable to the plans.

(2) Promulgating rules and regulations establishing

procedures whereby eligible individuals may elect to participate

in a plan, change their election amount or change their

investment choices on a periodic basis as determined by the

State Employees' Retirement Board or governing body of the

political subdivision or municipal authority which shall not be

less frequently than quarterly, whereby eligible individuals may

elect to cease deferrals entirely at any time with reasonable

Board or the governing body of the political subdivision or

municipal authority of financial institutions, insurance

companies or other organizations which may be qualified as

managers on behalf of the Commonwealth, a political subdivision

or municipal authority, of funds deferred under a plan on behalf

of any eligible individual; establishing standards and criteria

for the providing of options to eligible individuals concerning

the method of investing amounts deferred under any plan and of

informing eligible individuals of specific options offered by

qualified managers; establishing standards and criteria for the

to cover the costs of administering and managing the funds.

(3) An annual review of any qualified fund manager for the

purpose of making certain it continues to meet all standards and

criteria established.

(4) Establishing procedures in the plan document where any

officer or employe may:

(i) cease making deferrals;

(ii) withdraw deferred amounts in cases of financial

hardship or separation of such individual from service with the

Commonwealth, political subdivision or municipal authority, or

as otherwise permitted under section 457 of the Internal Revenue

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

457) and applicable to the plans. Any income deferred under such

authorized agreement shall continue to be included as regular

compensation for computing retirement and benefits earned by any

Commonwealth, political subdivision or municipal authority

officer or employe, but any sum deferred shall not be included

in the computation of any Federal income taxes to be withheld.

(f) All amounts deferred under a deferred compensation plan

shall constitute taxable income for purposes of the act of March

4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971,"

Retirement Board, any political subdivision nor any municipal

authority shall be responsible for any investment loss incurred

in the program, or for the failure of any investment to earn any

specific or expected return or to earn as much as any other

investment opportunity, whether or not such other investment

opportunity was offered to participants in the program, nor

shall the Commonwealth contribute to its deferred compensation

program. The expenses arising from allowing individuals to elect

to participate in a deferred compensation plan, to choose a fund

manager, to deduct from compensation amounts deferred under a

plan and to transfer to the fund manager amounts so deducted

of the Commonwealth, political subdivision or municipal

authority officer or employe shall be a contractual obligation

only with no preferred or special interest in deferred funds to

such officer, employe or contractor except as otherwise provided

by this act.

(h) (1) All assets and income which have been or shall be

withheld or deferred by the Commonwealth, political subdivision

or municipal authority in accordance with this section shall be

held in trust in any funding vehicle permitted by section 457 of

the Internal Revenue Code of 1986 for the exclusive benefit of

and it shall be the duty of the state treasurer to withhold the

payment of the salary and other claims and allowances of every

brigade-inspector so neglecting his duty, to the amount of the

penalty hereby imposed, until the same be paid or such inspector

shall be otherwise legally discharged therefrom; and it shall be

the duty of the auditor-general in case the commissioners of any

county neglect to make return or report, as the case may be,

agreeably to the next preceding section, to certify the same to

the treasurer of the county to which such commissioners belong,

whereupon the said county treasurer shall not thereafter pay to

either of the said commissioners any monies for their

settled quarter-yearly, and the amount found due on such

settlement shall be immediately paid into the state treasury;

but if any auctioneer or auctioneers shall neglect or refuse to

pay into the state treasury, or deposit in the bank of

Pennsylvania to the credit of the commonwealth, within one month

after the expiration of such quarter, the amount so found due

the commonwealth, the commission or commissions of such

auctioneer or auctioneers shall from thenceforth cease,

determine, and become absolutely void, and another person shall

be appointed in his or their place; and the state treasurer

he is authorized to do in other cases, and it is hereby made the

duty of the auditor-general to report to the governor any such

failure on the part of an auctioneer.

Section XXVIII. And be it further enacted by the authority

aforesaid, That the secretary of the commonwealth, the secretary

of the land-office, and the surveyor-general shall render their

accounts of fees received in their several offices quarter-

yearly, to the auditor-general for settlement, and the auditor-

general shall administer an oath or affirmation to the said

officers respectively, or their deputies, as the case may be,

who were in the receipt of the said fees, for the faithfulness

accountant officers may deem proper, and on the same principles,

and under similar powers and subject to like proceedings in

every respect as other accounts.

Section XXX. And be it further enacted by the authority

aforesaid, That the prothonotaries or clerks of the several

courts within this commonwealth, shall within twenty days after

the entering up a judgment in favour of the commonwealth, report

the same to the state treasurer, and it shall be the duty of the

deputy of the attorney-general, or such attorney as the

treasurer may appoint, to proceed to the collection of the

consequence of said judgment, is not paid into the state

treasury within sixty days after it shall have been received by

such attorney, the state treasurer shall immediately inform the

attorney-general thereof, if one of his deputies, who shall

thereupon remove the said deputy-attorney from office, and

appoint another in his place, and the state treasurer shall

immediately proceed against such dismissed deputy-attorney, or

any other attorney so acting as in cases of other delinquents.

Section XXXV. And be it further enacted by the authority

aforesaid, That all balances due the commonwealth on accounts

settled agreeably to this act, shall bear interest from three

aforesaid, That the auditor-general shall annually examine the

situation of the public treasury in relation to the moneys

therein, and the deposits in the several banks, and also if he

deems it necessary, examine the accounts of the state treasurer

with the several banks and their branches in which the public

moneys are deposited; and the officers of the said banks and

their branches, shall permit the auditor-general so to do; and

if the state treasurer shall refuse to exhibit to the auditor-

general his books, papers, or documents, or the moneys reserved

in his office to meet occasional demands, he shall for any such

Section XXXIX. And be it further enacted by the authority

aforesaid, That the state treasurer shall be appointed on the

second Tuesday in January, in every year, for which purpose each

house shall at least three days previous to such appointment,

choose a teller, and furnish the other house with a minute of

such choice, and on the day of such election, the members of

both houses shall assemble at such hour as shall have been

agreed upon by the two houses, in the chamber of the house of

representatives, and the speaker of the senate and speaker of

the house of representatives, shall preside, alternately at such

elections, and the tellers shall take down in writing the name

thereof shall be immediately made out and signed by the said

president and attested by the tellers, and the said tellers

shall make report to their respective houses, in order that the

same may be entered on their journals, but if there should not

be a majority at the first poll for either candidate, the

meeting shall proceed to vote until a choice be made.

Section XL. And be it further enacted by the authority

aforesaid, That the state treasurer before he enters upon the

duties of his office, shall take the oaths or affirmations of

office agreeably to the directions of the constitutions of the

thousand dollars, lawful money of Pennsylvania, conditioned for

the true and faithful performance of the trusts and duties

enjoined and required by law, to be performed by such treasurer,

and the execution thereof being duly proved, the same shall be

entered of record in the office of the secretary of the

commonwealth, and copies of such obligation duly authenticated

under the seal of the said office, shall be admitted as legal

evidence in any court in this commonwealth.

Section XLI. And be it further enacted by the authority

aforesaid, That the state treasurer shall procure a seal of

office, and all copies under the seal of the state treasurer, of

legislature, and in case the present, or any future auditor-

general should die, resign, or be removed from office by the

governor on the address of the general assembly, the governor

shall supply his place by an appointment for the remainder of

the time such auditor-general had to serve, and in case the

state treasurer should die during the recess of the legislature,

the chief clerk in the office of treasurer after having taken

the oath or affirmation of office, and given the requisite

security, shall be authorized to do the duties of state

treasurer until another shall be appointed by the legislature.

office agreeably to the directions of the constitution of the

United States, and this commonwealth, and become bound in an

obligation with two or more sureties to be approved by the

governor, in the sum of five thousand dollars, conditioned for

the true and faithful performance of the trusts confided and

duties enjoined and required by law to be performed by him.

Section XLIV. And be it further enacted by the authority

aforesaid, That the state treasurer and auditor-general shall

each receive the sum of one thousand three hundred and thirty-

three dollars and thirty-three cents, per annum, payable

quarter-yearly, in full compensation for their services.

made by him; and the auditor-general shall transfer all the

receipts and payments to their proper accounts in the books of

his office.

Section XLVI. And be it further enacted by the authority

aforesaid, That the state treasurer shall on the fourth Monday

in December annually, make report to the legislature, exhibiting

in detail the receipts and expenditures of the state treasury

for the preceding year, ending at the last day of November,

designating the name of every person from whom moneys were

received and to whom moneys have been paid, and on what account;

treasurer and auditor-general shall be previously printed, and

six hundred copies of each delivered to the clerk of the house

of representatives, the expenses of printing and all other

expenses attending the same to be paid out of the aggregate

funds of the commonwealth, on warrants drawn in the usual

manner.

Section XLIX. And be it further enacted by the authority

aforesaid, That all the duties not herein provided for, which,

previous to the passage of the act, entitled, "An act making a

new arrangement of the treasury department, and enjoining

certain duties on county commissioners;" were enjoined on the

aforesaid, That the auditor-general shall annually report to the

legislature a list of the accounts which remain unsettled, and

the reasons therefor, and the state treasurer shall annually

report to the legislature a list of the accounts on which

balances remain due to the commonwealth, which are not in a

course of recovery by law, and the reasons therefor.

Section LII. And be it further enacted by the authority

aforesaid, That it shall be the duty of the auditor-general to

report annually to the legislature, the names of all officers

who neglect or refuse to make the returns to him which by law