Regular Session 2019-2020 Senate Bill 0177 P.N. 0134

PRINTER'S NO. 134

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

177

Session of

2019

INTRODUCED BY BROWNE AND BREWSTER, FEBRUARY 1, 2019

REFERRED TO FINANCE, FEBRUARY 1, 2019

AN ACT

Amending Title 64 (Public Authorities and Quasi-Public

Corporations) of the Pennsylvania Consolidated Statutes,

establishing the Delinquent Debt Intercept Authority.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Title 64 of the Pennsylvania Consolidated

Statutes is amended by adding a chapter to read:

CHAPTER 62

DELINQUENT DEBT INTERCEPT AUTHORITY

Subchapter

A. General Provisions

B. Structure and Powers

C. Accounts

D. Delinquent Debt Intercept Program

E. Executive Agencies

F. Nonexecutive Governmental Agencies

SUBCHAPTER A

GENERAL PROVISIONS

Sec.

6201. Scope of chapter.

6202. Definitions.

6203. Construction.

§ 6201. Scope of chapter.

This chapter relates to the Delinquent Debt Intercept

Authority.

§ 6202 . Definitions.

The following words and phrases when used in this chapter

shall have the meaning given to them in this section unless the

context clearly indicates otherwise:

"Act." The act of July 7, 1947 (P.L.1368, No.542), known as

the Real Estate Tax Sale Law.

"Authority." The Delinquent Debt Intercept Authority

established in section 6211 (relating to authority).

"Board." The board of the Delinquent Debt Intercept

Authority established in section 6212 (relating to board).

"Bureau." As that term is defined under the act.

"Certified Commonwealth income tax obligation." A final

Commonwealth income tax obligation which has been certified by

the office.

"Certified debt." Either of the following:

(1) A final claim which has been certified by the

office.

(2) A final claim which has been certified by the

governing body of a government agency which is not an

executive agency.

"Claims." An amount owed to a Federal agency or government

agency. The term includes taxes, fines, fees, property tax

claims, property tax debts, interest and civil penalties. The

term does not include any of the following:

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(1) A court-ordered child support obligation.

(2) A Federal tax liability.

(3) An obligation which is less than $25.

(4) An obligation other than a property tax claim or

property tax debt, which is secured by collateral.

"Commonwealth agency." An executive agency, an independent

agency or a State-affiliated entity.

"Commonwealth income tax obligation." An obligation owed the

Commonwealth under Article III or IV of the act of March 4, 1971

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

"Debtor." A person that owes a claim to a Federal agency or

who owes a certified debt to a government agency.

"Executive agency." The Governor and the departments,

boards, commissions, authorities and other officers and agencies

of the Commonwealth. The term does not include a court or other

officer or agency of the unified judicial system, the General

Assembly and the General Assembly's officers and agencies, an

independent agency, a State-affiliated entity, a State-related

institution, a political subdivision, a municipal authority or a

local, regional or metropolitan transportation authority.

"Federal agency." The United States, the President of the

United States, the Congress and any department, corporation,

agency or instrumentality designated or established by the

United States.

"Federal payment." A payment to be made by a Federal agency

to a person. The term does not include any of the following:

(1) A Federal tax refund payment.

(2) A Federal payment for salary, wage, pension or other

compensation to or on behalf of an employee of a Federal

agency.

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(3) A payment due to an individual under the Social

Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.).

(4) A payment due to an individual under Part B of the

Black Lung Benefits Act (Public Law 91-173, 30 U.S.C. § 901

et seq.) .

(5) A payment due to an individual under any law

administered by the Railroad Retirement Board.

(6) Any other payment excluded by the Secretary of the

United States Treasury under the Treasury Offset Program.

"Federal tax payment." A Federal tax refund payment to be

made by a Federal agency to a person.

"Final claim." A claim which remains unpaid or uncollected

for a period exceeding 30 days from the date the right to appeal

or contest the claim first expired.

"Final Commonwealth income tax obligation." A Commonwealth

income tax obligation which remains unpaid or uncollected for a

period exceeding 30 days from the date the right to appeal or

contest the obligation first expired.

"Fund." The Delinquent Debt Intercept Fund established in

section 6221 (relating to fund and accounts).

"Governing body."

(1) The court, body or board authorized by law to adopt

binding resolutions or enact ordinances for a government

agency. The term includes an employee or officer of a court,

body or board who has by a binding resolution or ordinance

been given explicit authority to act for the court, body or

board in a particular matter or type of matter.

(2) For municipalities which are governed by separate

legislative and executive branches, the executive employee or

officer who is responsible for revenue collection.

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"Government agency." Any of the following:

(1) A Commonwealth agency.

(2) The unified judicial system and the unified judicial

system's courts, officers and agencies.

(3) The General Assembly and the General Assembly's

officers and agencies.

(4) A political subdivision.

(5) A municipal authority.

(6) A local, regional or metropolitan transportation

authority.

"Independent agency." A board, commission or other agency or

officer of the Commonwealth which is not subject to the policy,

supervision and control of the Governor. The term does not

include the following:

(1) A court or other officer or agency of the unified

judicial system.

(2) The General Assembly and the General Assembly's

officers and agencies.

(3) An executive agency.

(4) A State-affiliated entity.

(5) A State-related institution.

(6) A political subdivision.

(7) A municipal authority.

(8) A local, regional or metropolitan transportation

authority.

"Local, regional or metropolitan transportation authority."

An entity meeting the definition of "authority" under 74 Pa.C.S.

§ 1701 (relating to definitions).

"Municipal authority." A public authority created under 53

Pa.C.S. Ch. 56 (relating to municipal authorities) or under the

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former act of May 2, 1945 (P.L.382, No.164), known as the

Municipality Authorities Act of 1945.

"Office." The Office of the Budget.

"Payee." A debtor owed a payment from a Federal agency or an

executive agency.

"Program." The Delinquent Debt Intercept Program under

Subchapter D (relating to Delinquent Debt Intercept Program).

"Property tax claim." A claim as defined under section 102

of the act.

"Property tax debt." A liability of a person in whose name a

real property is last registered with a government agency

located in a county of the first or second class for a tax

levied, with added interest and penalties, by the government

agency upon the real property.

"Secretary." The Secretary of the Budget.

"State-affiliated entity." A Commonwealth authority or a

Commonwealth entity.

(1) The term includes:

(i) The Pennsylvania Turnpike Commission.

(ii) The Pennsylvania Housing Finance Agency.

(iii) The Commonwealth Financing Authority.

(iv) The Pennsylvania Municipal Retirement Board.

(v) The Pennsylvania Infrastructure Investment

Authorit y.

(vi) The State Public School Building Authority.

(vii) The Pennsylvania Higher Educational Facilities

Authority.

(viii) The State System of Higher Education.

(2) The term does not include:

(i) A court or other officer or agency of the

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unified judicial system.

(ii) The General Assembly and the General Assembly's

officers and agencies.

(iii) An executive agency.

(iv) A State-related institution.

(v) A political subdivision.

(vi) A municipal authority.

(vii) A local, regional or metropolitan

transportation authority.

"State payment." A payment to be made by an executive agency

to a person. The term does not include any of the following:

(1) Payments for salary, wage, pension or other

compensation to or on behalf of an employee of an executive

agency.

(2) Payments to be made to an individual under the act

of June 2, 1915 (P.L.736, No.338), known as the Workers'

Compensation Act.

(3) Payments to be made to an individual under the act

of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1),

known as the Unemployment Compensation Law.

(4) Payments to be made to an individual under the act

of June 13, 1967 (P.L.31, No.21), known as the Human Services

Code.

(5) A refund made in accordance with section 304 of the

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

Code of 1971.

"State-related institution." The Pennsylvania State

University, the University of Pittsburgh, Lincoln University or

Temple University.

"Treasury Offset Program." The program authorized under 31

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U.S.C. § 371 6 (relating to administrative offset).

§ 6203. Construction.

This chapter shall be liberally construed in order to affect

the public purposes of this chapter.

SUBCHAPTER B

STRUCTURE AND POWERS

Sec.

6211. Authority.

6212. Board.

6213. Powers.

§ 6211. Authority.

(a) Establishment.--There is established an independent

authority to be known as the Delinquent Debt Intercept

Authority. The authority shall be an instrumentality of the

Commonwealth and a body corporate and politic, with corporate

succession.

(b) Governance.--The authority shall be governed by the

board. The powers of the authority shall be exercised by the

board.

(1) Expenses of the authority shall be paid from income

of the authority. Except as provided in this chapter or by

other law, the Commonwealth may not be responsible for

funding the expenses of the authority.

(2) The authority may borrow from the Commonwealth an

amount not to exceed $1,000,000 for the purpose of operation

of the authority. Any amount borrowed under this paragraph

must be repaid to the Commonwealth by June 30, 2019.

(d) Fiscal year.--The fiscal year of the authority shall be

the same as the fiscal year of the Commonwealth.

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(e) Audit.--

(1) The accounts and books of the authority shall be

examined and audited annually by an independent certified

public accounting firm.

(2) The authority shall, by December 31 of each year,

file a copy of the audit required by paragraph (1) with the

Secretary of the Senate and the Chief Clerk of the House of

Representatives.

(f) Publication.--The authority shall annually transmit

notice of a concise financial statement to the Legislative

Reference Bureau for publication in the Pennsylvania Bulletin.

(g) Cooperation.--Executive agencies, other than the office,

shall cooperate with and provide assistance to the authority

without financial reimbursement.

(h) Existence and dissolution.--

(1) The authority shall exist until dissolved by law.

(2) The authority shall be dissolved by law if all

outstanding liabilities of the authority have been fully paid

or provision has been made for payment of all outstanding

liabilities of the authority. Upon the dissolution of the

authority, all funds, assets and other property of the

authority shall vest in the Commonwealth.

(i) Procurement.--The authority shall be considered an

independent agency for the purposes of 62 Pa.C.S. Pt. I

(relating to Commonwealth procurement code).

(j) Relationship with office.--

(1) The office shall provide administrative services and

staff to the authority and the board. The authority shall

reimburse the office for the cost of providing the

administrative services and staff.

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(2) The authority shall enter into agreements with the

office setting forth the rights and obligations they have to

each other in carrying out the authority's and office's

respective responsibilities under and to further the intent

of this chapter.

(k) Applicability.--The following acts shall apply to the

authority and the board:

(1) The act of July 19, 1957 (P.L.1017, No.451), known

as the State Adverse Interest Act.

(2) The act of February 14, 2008 (P.L.6, No.3), known as

the Right-to-Know Law.

(3) The provisions of 65 Pa.C.S. Chs. 7 (relating to

open meetings) and 11 (relating to ethics standards and

financial disclosure).

§ 6212. Board.

(a) Composition.--The authority shall be governed by a board

composed of the following members:

(1) The State Treasurer or a designee.

(2) The Attorney General or a designee.

(3) The secretary or a designee.

(4) The Secretary of Revenue or a designee.

(5) One individual appointed by the Governor.

(6) Four legislative appointees:

(i) Appointments are as follows:

(A) One individual who is a member of the

government of a county and who shall be appointed by

the President pro tempore of the Senate.

(B) One individual who is a member of the

government of a township of the first or second class

appointed by the Minority Leader of the Senate.

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government of a city of the first, second or third

class appointed by the Speaker of the House of

Representatives.

(D) One individual who is a member of a school

board appointed by the Minority Leader of the House

of Representatives.

(ii) Legislative appointees shall serve at the

pleasure of the appointing authority.

(iii) An individual appointed to the board pursuant

to subparagraph (i) may not be a member of the General

Assembly or staff of a member of the General Assembly.

(b) Organization.--The Governor shall select a member of the

board to serve as chairperson. The members shall select the

other officers from among the members.

chairperson.

(d) Quorum.--Five members of the board shall constitute a

quorum, and the following shall apply:

(1) The consent of at least five members of the board,

with at least four of the consenting members being appointed

under subsection (a)(6), shall be necessary to take action on

behalf of the authority for any of the following:

(i) Adopting bylaws.

(ii) Hiring professionals under section 6213(a)(5)

and (6) (relating to powers).

(2) The consent of at least five members of the board

shall be necessary to take any other action on behalf of the

authority.

(e) Compensation.--The members of the board may not receive

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compensation for services as members of the board but shall be

entitled to reimbursement for all necessary and reasonable

expenses incurred in connection with the performance of the

members' duties as a member of the board.

(f) Liability.--Members of the board shall not be liable

personally for any debt of the authority.

(g) Initial appointment and vacancy.--Appointing authorities

shall appoint initial members to the board within 30 days of the

effective date of this section. Whenever a vacancy occurs on the

board, the appointing authority shall appoint a successor member

within 30 days of the vacancy.

§ 6213. Powers.

(a) Powers.--The authority may do all of the following:

(1) Adopt bylaws and guidelines proposed by the office

as necessary.

(2) Sue and be sued, implead and be impleaded,

interplead, complain and defend in any court.

(3) Adopt, use and alter a corporate seal. No seal shall

be required to take official action.

(4) Establish accounts necessary or desirable for the

authority's corporate purposes.

(5) Employ an executive director.

(6) Retain attorneys, accountants, auditors and

consultants to render services and engage the services of

other advisors, consultants and agents as necessary. For the

purposes of this paragraph, the authority shall be considered

an independent agency for purposes of the act of October 15,

1980 (P.L.950, No.164), known as the Commonwealth Attorneys

Act.

(7) Pay or satisfy debts of the authority.

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(8) Contract and execute instruments.

(9) Impose and collect surcharges in connection with the

offsetting of debts on behalf of Federal agencies and of

certified debts on behalf of government agencies.

(10) Agree to and comply with conditions attached to

Federal or Commonwealth funds not inconsistent with this

chapter.

(11) Exercise rights provided by law for the benefit or

protection of the authority, a Federal agency or a government

agency.

(12) Invest money of the authority not required for

immediate use, as the board determines.

(13) Procure insurance against any loss in connection

with the authority's property and other assets.

(14) Promulgate and adopt, after consultation with

counties and bureaus, regulations, guidelines and statements

of policy as the authority deems necessary and appropriate to

effectuate the public purposes of this chapter.

(15) Do any other appropriate act necessary or

convenient to:

(i) carry out and effectuate the purposes of this

chapter; or

(ii) exercise the powers provided in this

subsection, including any act reasonably implied from

those powers.

(b) Duties.--The authority shall do all of the following:

(1) Assume the rights, obligations, duties and

responsibilities of the Commonwealth under an agreement

between the Commonwealth and a Federal agency relating to the

participation of the Commonwealth in the Treasury Offset

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Program.

(2) Contract for services related to the implementation

and operation of the program.

(3) Assist, with the cooperation of counties and

bureaus, to ensure accurate and timely notices of payments

and offsets of certified debts.

(4) Administer the program established in Subchapter D

(relating to Delinquent Debt Intercept Program) in accordance

with this chapter and the requirements of the Treasury Offset

Program.

SUBCHAPTER C

ACCOUNTS

Sec.

6221. Fund and accounts.

6222. Governmental agency payments.

6223. Administrative accounts.

§ 6221. Fund and accounts.

There is established within the State Treasury a special fund

known as the Delinquent Debt Intercept Fund. Within the fund,

the authority shall establish one or more accounts for each

government agency that elects to submit certified debts to the

authority for offset against payments to be made by a Federal

agency or against State payments to be made by an executive

agency. Offsets for certified debts received by the authority

under the program shall be deposited into the account of the

government agency that certified the final claim upon which the

offset was made.

§ 6222. Governmental agency payments.

On the last Friday of each month, the authority shall pay to

a government agency that elects to submit certified debts to the

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authority under the program the money in the account established

for the government agency.

§ 6223. Administrative accounts.

The authority shall establish within the fund one or more

administrative accounts. Surcharges imposed by the authority

under the program shall be deposited into the administrative

accounts for use by the authority.

SUBCHAPTER D

DELINQUENT DEBT INTERCEPT PROGRAM

Sec.

6231. Federal agreements.

6232. Government agencies agreements.

6233. Placement.

6234. Duration.

6235. Notification of offset .

6236. Removal.

6237. Surcharge.

6238. Application of offsets.

6239. Applicability of existing statutes.

6240. Immunity.

§ 6231. Federal agreements .

(a) Federal and Commonwealth offsets.--The authority, in

cooperation with the office, is authorized to enter into an

agreement with a Federal agency to participate in the Treasury

Offset Program for the offset of Commonwealth income tax

obligations and Federal tax payments. The agreement shall

provide for the authority to submit the sum of a certified

Commonwealth income tax obligation and the surcharge imposed by

the authority for offset against Federal tax payments. The

agreement shall provide for any debtor notification and remedy

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or other requirements necessary for participation in the

Treasury Offset Program and shall require the Federal agency or

Commonwealth to provide the authority with all of the following:

(1) The name of the debtor.

(2) The last known address of the debtor.

(3) The Social Security number or other tax

identification number of the debtor.

(4) The sum of the certified Commonwealth income tax

obligation and the surcharge.

(5) The date on which the certified Commonwealth income

tax obligation became delinquent.

(6) The name, address and telephone number of the

Commonwealth department to which questions may be directed.

(7) Written certification by the Commonwealth of the

certified Commonwealth income tax obligation.

(8) Any other information deemed necessary by the

authority or the Federal agency.

(b) Federal and government agency offsets.--The authority,

in cooperation with the office, shall enter into an agreement

with a Federal agency to participate in the Treasury Offset

Program for the offset of any nontax debts owed to a Federal

agency and of any certified debts owed to a government agency.

The agreement shall provide for the Federal agency to submit the

sum of a nontax debt owed to a Federal agency and the surcharge

imposed by the authority for offset against State payments to be

made by an executive agency and provide for the authority to

submit the sum of a certified debt owed to a government agency

and the surcharge imposed by the authority for offset against

Federal payments to be made by a Federal agency. The agreement

shall provide for any debtor notification and remedy or other

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requirements necessary for participation in the Treasury Offset

Program and shall require the Federal agency or government

agency to provide the authority with all of the following:

(1) The name of the debtor.

(2) The last known address of the debtor.

(3) The Social Security number or other tax

identification number of the debtor.

(4) The sum of the nontax debt or certified debt and the

surcharge.

(5) The date on which the nontax debt or certified debt

became delinquent.

(6) The name, address and telephone number of the

Federal agency owed the nontax debt or of the government

agency owed the certified debt.

(7) Written certification by the government official or

governing body certifying the nontax debt or certified debt.

(8) Any other information deemed necessary by the

authority or the Federal agency.

§ 6232. Government agencies agreements.

The authority shall enter into an agreement with the office

on behalf of an executive agency and may, in cooperation with

the office, enter into an agreement with a government agency,

which is not an executive agency, for the offset of certified

debts owed to the government agency. The agreement shall provide

for the government agency to submit the sum of a certified debt

owed to the government agency and the surcharge imposed by the

authority for offset against Federal payments to be made by a

Federal agency in accordance with an agreement entered into

under 6231(b) (relating to Federal agreements) and against State

payments to be made by an executive agency. The agreement shall

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provide for any debtor notification and remedy or other

requirements necessary for participation in the program and in

the Treasury Offset Program and shall require the government

agency to provide the authority with all of the following:

(1) The name of the debtor.

(2) The last known address of the debtor.

(3) The Social Security number or other tax

identification number of the debtor.

(4) The sum of the certified debt and the surcharge.

(5) The date on which the certified debt became

delinquent.

(6) The name, address and telephone number of the

government agency owed the certified debt.

(7) Written annual certification by the government

official or by the governing body, which is certifying the

certified debt.

(8) Any other information deemed necessary by the

authority or the Federal agency or which is required for

participation in the Treasury Offset Program.

§ 6233. Placement.

(a) Certified Commonwealth income tax obligations.--Upon

receiving a request from the office, the authority shall attempt

to offset the following:

(1) the sum of:

(i) the certified Commonwealth income tax

obligation ; and

(ii) the surcharge imposed by the authority; against

(2) any Federal tax payments to be made by a Federal

agency.

(b) Federal nontax debt and certified debt.--Upon receiving

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a request from a Federal agency or a government agency, the

authority shall attempt to offset the following:

(1) the sum of:

(i) the certified debt owed to a government agency

or the nontax debt owed to a Federal agency; and

(ii) the surcharge imposed by the authority; against

(2) any Federal payments to be made by a Federal agency

and any State payments to be made by an executive agency.

(1) A certified debt shall not accrue additional

interest or penalties during the period the authority

attempts to obtain offset of the certified debt. If a

certified debt is removed from the program in ac cordance with

section 6236 (relating to removal), additional interest and

penalties shall accrue as provided by law from the date the

certified debt is removed from the program.

(2) If a certified debt is removed from the program in

ac cordance with section 6236, additional interest and

penalties shall accrue as provided by law from the date the

authority receives notice from the governmental agency of the

authority's intent to remove the certified debt from the

program.

§ 6234. Duration.

(a) Federal debts.--U nless otherwise stated in the agreement

required by section 6231(b) (relating to Federal agreements),

the authority shall continue to attempt to offset a nontax debt

owed to a Federal agency against a State payment to be made by

an executive agency until one of the following occurs:

(1) The nontax debt is paid in full.

(2) The Federal agency notifies the authority to cease

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attempts to offset the nontax debt.

(b) Commonwealth income tax obligations.--The authority

shall continue to attempt to offset a certified Commonwealth

income tax obligation against a Federal tax payment to be made

by a Federal agency until one of the following occurs:

(1) The certified Commonwealth income tax obligation is

paid in full.

(2) The office notifies the authority to cease attempts

to offset the certified Commonwealth income tax obligation.

attempt to offset a certified debt owed to a government agency

against a Federal payment to be made by a Federal agency or

against a State payment to be made by an executive agency until

one of the following occurs:

(1) The certified debt is paid in full.

(2) The government agency notifies the authority to

cease attempts to offset the certified debt.

§ 6235. Notification of offset.

Upon an offset being made, the authority shall notify the

payee of all of the following:

(1) The date the offset occurred.

(2) The type and amount of the payment that was offset.

(3) The identity of the Federal agency or government

agency which requested the offset.

(4) The name, address and telephone number of the

Federal agency or of the government agency which requested

the offset.

(5) Any other information required for participation in

the Treasury Offset Program.

§ 6236. Removal.

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(a) Federal debts. --Unless otherwise stated in the agreement

required under section 6231(b) (relating to Federal agreements) ,

a Federal agency may at any time request the authority to remove

a nontax debt from the program.

(b) Government debts.--

(1) Except as provided in paragraph (2), a government

agency may at any time request the authority to remove a

certified debt from the program.

(2) If a government agency elects to remove a certified

debt which is a property tax claim, the government agency

shall notify the appropriate bureau and the election shall

become effective on January 1 of the following calendar year.

§ 6237. Surcharge.

The authority shall establish and impose a surcharge on each

offset made against a Federal tax payment or Federal payment to

be made by a Federal agency and on each offset made against a

State payment to be made by an executive agency. The surcharge

shall be a uniform percentage no more than is sufficient to

fully fund the operation of the authority.

§ 6238. Application of offsets.

Offsets shall be applied with respect to each debtor in the

following order:

(1) The surcharge imposed by the authority for an

offset.

(2) The certified Commonwealth tax obligation.

(3) The certified debt owed to a government agency in

the date order the certified debt was received by the

authority.

(4) The nontax debt owed to a Federal agency.

§ 6239. Applicability of existing statutes.

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(a) Right-to-Know Law.--The act of February 14, 2008 (P.L.6,

No.3), known as the Right-to-Know Law, shall not apply to the

program. Data, records and files containing information related

to a debtor and which are utilized for the program shall be

deemed confidential and privileged.

(b) Tax Reform Code of 1971.--The restrictions on the

sharing of information gained by the Department of Revenue under

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

Code of 1971, are inapplicable to the share of that information

by the Department of Revenue with the authority insofar as the

information is necessary to accomplish the program.

interception or offset of a Federal payment or a State payment

for a court-ordered child support obligation shall take priority

over an offset made by the authority for a certified

Commonwealth tax obligation, a certified debt owed to a

government agency or a nontax debt owed to a Federal agency.

§ 6240. Immunity.

The authority shall be immune from suit by debtors as to the

validity of a nontax debt owed a Federal agency, of a certified

Commonwealth income tax obligation owed the Commonwealth or of a

certified debt owed a government agency.

SUBCHAPTER E

EXECUTIVE AGENCIES

Sec.

6251. Office of the Budget.

6252. Executive agencies.

6253. Certification and placement.

6254. Duration of placement.

6255. Collection of information.

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§ 6251. Office of the Budget.

(a) Review.--If the office entered into an agreement

relating to participation of the Commonwealth in the Treasury

Offset Program under section 6231 (relating to Federal

agreements) , the office shall review each type of claim imposed,

charged or collected by an executive agency and each type o f

State payment made by an executive agency to determine the

appropriate time for the type of claim or type of State payment

to be added to the program.

(b) Determination.--If the office determines that a type of

claim or type of State payment is technically capable of being

added to the program, the office shall notify the executive

agency which is responsible by law for the collection of the

type of claim or for making the type of payment.

§ 6252. Executive agencies.

(a) Commonwealth income tax obligations.--The Department of

Revenue shall, by Wednesday of each week, determine if each

unpaid or uncollected Commonwealth income tax obligation is a

final Commonwealth income tax obligation as of the previous

Friday. If the Department of Revenue determines that the

Commonwealth income tax obligation is a final Commonwealth

income tax obligation, the Department of Revenue shall notify

the office of the final Commonwealth income tax obligation

within 48 hours of its determination. The notice shall be in the

form and manner as required by the office.

(b) Claims.--Upon being notified by the office under section

6251 (relating to Office of the Budget), each executive ag ency

which is responsible by law for the collection of a claim shall,

by the Wednesday of each week, determine if each unpaid or

uncollected claim is a final claim as of the previous Friday. If

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the executive agency determines that the claim is a final claim,

the executive agency shall notify the office of the final claim

within 48 hours of the executive agency's determination. The

notice shall be in the form and manner as required by the

office.

§ 6253. Certification and placement.

(a) Final Commonwealth income tax obligations.--Upon receipt

of a notice unde r section 6252(a) (relating to executive

agencies), the office shall certify the final Commonwealth

income tax obligation as a certified final income tax obligation

owed to the Commonwealth and request the authority to attempt to

obtain offset of the certified Commonwealth income tax

obligation under the program. The request and the information

relating to the certified Commonwealth income tax obligation

shall be in the form and manner required by the authority.

(b) Final claims.--Upon receipt of a notice under section

6252(b) , the office shall certify the final claim as a certified

debt owed to the Commonwealth and request the authority to

attempt to obtain offset of the certified debt under the

program. The request and the information relating to the

certified debt shall be in the form and manner required by the

authority.

§ 6254. Duration of placement.

The office shall request the authority to attempt to obtain

offset of the certified Commonwealth income tax obligation or

certified debt until one of the following occurs:

(1) The certified Commonwealth income tax obligation or

certified debt is paid in full.

(2) Upon good cause shown, the secretary requests the

certified Commonwealth income tax obligation or certified

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debt be removed from the program.

§ 6255. Collection of information.

An executive agency shall collect and transmit to the office

the tax identification number of each person with which the

executive agency contracts for supply, service or construction

under 62 Pa.C.S. (relating to procurement). The office may not,

60 days after the effective date of this section, submit a

voucher to the Treasury Department for payment unless the tax

identification number of the contractor is on record with the

office.

SUBCHAPTER F

NONEXECUTIVE GOVERNMENTAL AGENCIES

Sec.

6271. Certain government agencies.

6272. Certification and placement.

6273. Duration of placement.

6274. Tax claim bureaus.

§ 6271. Certain government agencies.

The governing body of a government agency which is not an

executive agency may enter into an agreement with the authority

to submit certified debts owed to the government agency to the

authority for offset against Federal payments to be made by a

Federal agency in accordance with an agreement entered into

under section 6232(b) (relating to government agencies

agreements) or against State payments to be made by an executive

agency under the program.

§ 6272. Certification and placement.

(a) General rule.--Upon entering into an agreement with the

authority in accordance with section 6271 (relating to certain

government agencies), if the governing body elects for property

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tax claims reported to a bureau after January 1, 2019, to be

included in the program, the governing body shall certify each

final claim which the governing body elects to be included in

the program as a debt owed to the government agency. Upon

certification, the government agency shall request the authority

to obtain offset of the certified debt under the program.

Certification and notification under this subsection must occur

at least 30 days prior to the date of sale under section 601(a)

of the act for each property tax claim. The request and the

information relating to the certified debt shall be in the form

and manner required by the authority.

(b) Property tax debts.--Upon entering into an agreement

with the authority in accordance with section 6271, the

governing body shall certify each final claim which is a

property tax debt which the governing body elects to be included

in the program as a debt owed to the government agency. Upon

certification, the government agency shall notify the

appropriate bureau and shall request the authority to obtain

offset of the certified debt under the program. The request and

the information relating to the certified debt shall be in the

form and manner required by the authority.

agreement with the authority in accordance with section 6271, if

a governing body elects for property tax claims which have been

reported to a bureau under section 306 of the act prior to April

30, 2019, to be included in the program, the governing body

shall certify the property tax debt as a debt owed to the

government agency. Upon certification, the governing body shall

request the authority to attempt to obtain offset of the

certified debt under the program. Certification and notification

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under this subsection must occur at least 30 days prior to the

date of sale under section 601(a) of the act for each property

tax claim. The request and information relating to the certified

debt shall be in the form and manner required by the authority.

§ 6273. Duration of placement.

A government agency may request the authority to attempt to

obtain offset of the certified debt until one of the following

occurs:

(1) The certified debt is paid in full.

(2) The government agency requests the certified debt be

removed from the program.

§ 6274. Tax claim bureaus.

(a) Stay.--If a bureau receives notice under section 6272(b)

or (c) (relating to certification and placement) , the effect of

the notice shall operate as a stay of any action of the bureau

under the act for the certified claim.

(b) Termination.--If a bure au receives notice under section

6236(b) (relating to removal), the effect of the notice shall

operate as a termination of the stay and the bureau shall resume

procedures under the act regarding the certified debt.

Section 2. This act shall take effect immediately.

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