See other bills
under the
same topic
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.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
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:
20190SB0177PN0134 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(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.
20190SB0177PN0134 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(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.
20190SB0177PN0134 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"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
20190SB0177PN0134 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
20190SB0177PN0134 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
20190SB0177PN0134 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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.
(c) Expenses.--
(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.
20190SB0177PN0134 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(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.
20190SB0177PN0134 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(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.
20190SB0177PN0134 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(C) One individual who is a member of the
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.
(c) Meetings.--The board shall meet at the call of the
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
20190SB0177PN0134 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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.
20190SB0177PN0134 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(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
20190SB0177PN0134 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
20190SB0177PN0134 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
20190SB0177PN0134 - 15 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
20190SB0177PN0134 - 16 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
20190SB0177PN0134 - 17 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
20190SB0177PN0134 - 18 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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.
(c) Effect of placement.--
(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
20190SB0177PN0134 - 19 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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.
(c) Government debts.--The authority shall continue to
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.
20190SB0177PN0134 - 20 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(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.
20190SB0177PN0134 - 21 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(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.
(c) Court-ordered child support obligations.--An
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.
20190SB0177PN0134 - 22 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
§ 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
20190SB0177PN0134 - 23 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
20190SB0177PN0134 - 24 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
20190SB0177PN0134 - 25 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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.
(c) Existing property tax claims.--Upon entering into an
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
20190SB0177PN0134 - 26 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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.
20190SB0177PN0134 - 27 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21