Regular Session 2019-2020 House Bill 2071 P.N. 2912

PRINTER'S NO. 2912

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2071

Session of

2019

INTRODUCED BY GROVE, MILLARD, ROTHMAN, RYAN, BERNSTINE, BARRAR,

SAYLOR AND KEEFER, NOVEMBER 19, 2019

REFERRED TO COMMITTEE ON APPROPRIATIONS, NOVEMBER 19, 2019

AN ACT

Amending Title 71 (State Government) of the Pennsylvania

Consolidated Statutes, providing for Commonwealth employment;

and establishing the Commonwealth Tax Accountability Program.

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

COMMONWEALTH EMPLOYMENT

Chapter

35. Commonwealth Tax Accountability Program

CHAPTER 35

COMMONWEALTH TAX ACCOUNTABILITY PROGRAM

Sec.

3501. Definitions.

3502. Program establishment.

3503. Prohibition of employment for individual with delinquent

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:

"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.

"Delinquent." The outstanding payment for failing to pay

taxes levied under the act of March 4, 1971 (P.L.6, No.2), known

as the Tax Reform Code of 1971.

"Department." The Department of Revenue of the Commonwealth.

"Entity." A corporation, joint-stock association, business

trust, limited liability company, sole proprietorship or

Subchapter S corporation.

"Executive agency." A department, agency or commission of

the Commonwealth under the policy supervision and control of the

Governor.

"Grant." The awarding of financial assistance for a specific

purpose under a program administered by an executive agency to

an eligible participant that is funded by the operating budget

of the Commonwealth.

"Grantee." An eligible participant applying for financial

assistance under a grant program operated by a Commonwealth

agency.

"Individual." A person employed or seeking employment with

an executive agency.

"Liability." The total amount a contractor, entity, grantee

or individual is delinquent.

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"Office." The Governor's Office of the Budget.

"Payment agreement." An agreement between a contractor,

entity, grantee or individual to pay the liability owed to the

Commonwealth. The term may include, but is not limited to, any

combination of the following:

(1) a scheduled series of affordable payments;

(2) reduction of a contracted payment from an executive

agency equal to the liability owed to the Commonwealth; or

(3) reduction in a tax return owed to the individual or

entity up to the entirety of the tax return or the total

liability owed to the Commonwealth.

"Program." The Commonwealth Tax Accountability Program

established under section 3502 (relating to program

establishment).

§ 3502. Program establishment.

(a) Establishment.--The Commonwealth Tax Accountability

Program is established and shall be administered by the

department.

(b) Use.--The program shall be utilized by executive

agencies, the Judicial Branch, the Legislative Branch and

independent boards and commissions of the Commonwealth to

determine whether an individual, grantee, entity or contractor

is delinquent.

database of individuals, entities, grantees and contractors who

are delinquent for use by executive agencies, the Judicial

Branch, the Legislative Branch and independent boards and

commissions of the Commonwealth under subsection (b). The

following shall apply:

(1) Individuals on the database under this subsection

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may not be employed by an executive agency, the Judicial

Branch, the Legislative Branch or an independent board or

commission of the Commonwealth.

(2) A grantee that is listed on the database may not

receive a grant from the executive agency.

(3) A contractor that is listed on the database may not

be awarded a contract.

(4) An entity that is listed on the database may not

receive a tax credit, contract or grant offered by the

Commonwealth.

(d) Exception.--No prohibition under this section for a

contractor, entity, grantee or individual may apply if the

contractor, entity, grantee or individual has entered into a

payment agreement with the department to pay the liability to

the Commonwealth.

§ 3503. Prohibition of employment for individual with

delinquent payment.

(a) Prohibition of employment.--No executive agency, the

Judicial Branch, the Legislative Branch or independent board or

commission of the Commonwealth may award employment to an

individual or employ an individual who is delinquent.

(b) Application.--An executive agency, the Judicial Branch,

the Legislative Branch or an independent board or commission of

the Commonwealth shall require an individual to submit an

application:

(1) certifying the individual is not delinquent; and

(2) authorizing the department to disclose to the head

of the executive agency whether the individual is delinquent.

requirements of subsection (a) if the department notifies the

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executive agency, the Judicial Branch, the Legislative Branch or

an independent board or commission of the Commonwealth that:

(1) the individual is currently in a grace period and

has time to pay back the individual's liability to the

Commonwealth; or

(2) the individual is delinquent but has entered into a

payment agreement to pay off the individual's liability to

the Commonwealth. The following shall apply:

(i) if an individual violates the terms of the

payment agreement, the individual is prohibited from

employment under subsection (a); and

(ii) the prohibition under subsection (a) shall not

apply if the department has determined to adjust the

payment schedule for the individual and enters into a new

payment agreement, unless the terms of the adjusted

agreement are violated by the individual.

(d) Current employees.--Subject to the provisions of Part

III (relating to civil service reform) or any other law to the

contrary, current employees of an executive agency, the Judicial

Branch, the Legislative Branch or an independent board or

commission of the Commonwealth shall fulfill the requirements of

subsection (b) within 90 days of the effective date of this

section. The following shall apply:

(1) Refusal to submit the form under subsection (b) by a

current employee under this section shall result in the

employee being suspended.

(2) An executive agency, the Judicial Branch or the

Legislative Branch shall notify employees that refusal to

submit the form under subsection (b) may result in the

employee's suspension until such time that the employee

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submits the form required under subsection (b).

(e) Notice.--Subject to the provisions of Part III (relating

to civil service reform) or any other law to the contrary, an

executive agency, the Judicial Branch, the Legislative Branch or

an independent board or commission of the Commonwealth shall

provide notice to all current employees that they are required

to submit an application under subsection (b) and that an

employee that is delinquent must enter into a payment agreement

with the department. The notice shall include a warning that

failure to enter into a payment agreement may result in a

delinquent employee's wages being garnished until the liability

is paid off or the employee enters into a payment agreement.

(f) Garnishment of wages.--If the department notifies an

executive agency, the Judicial Branch, the Legislative Branch or

an independent board or commission of the Commonwealth that an

employee is delinquent and the employee fails to enter into a

payment agreement with the department, the department shall

garnish the employee's wages until the liability is paid off or

the employee enters into a payment agreement. The department

shall establish the necessary rules and regulations to implement

this subsection.

(g) Reasonable schedule for repayment.--Agreements made by

the department with a current employee under subsection (e)

shall reasonably reflect any economic hardship faced by the

employee in a manner as to provide the employee with a

reasonable schedule to pay the employee's liability prior to

suspension under subsection (e).

(h) Form.--The department and the office shall develop a

standardized form for executive agencies to use during the

hiring process that allows an individual to authorize the

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department to provide the executive agency information on

whether the individual is delinquent.

Section 2. This act shall take effect in 180 days.

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