HB 330 — An Act amending Title 71 (State Government) of the Pennsylvania Consolidated Statutes, providing for improper payments; providing for participation in Do-Not-Pay Initiative; and imposing a penalty.

Summary

Treasury Do Not Pay Initiative

Bill Text

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This act establishes provisions for the Do-Not-Pay Initiative within the Pennsylvania Consolidated Statutes, mandating Commonwealth agencies to participate and report on improper payments.

• Title 71

  PART IV IMPROPER PAYMENTS Chapter 35. Do-Not-Pay Initiative CHAPTER 35 DO-NOT-PAY INITIATIVE Sec. 3501. Definitions. 3502. Participation in initiative.

  Adds a new part to Title 71 regarding improper payments and the Do-Not-Pay Initiative.

• § 3501

  "Commonwealth agency." A department, agency or commission of the Commonwealth under the policy supervision and control of the Governor. "Improper payment." A payment made by a Commonwealth agency that: (1) exceeds the amount that a recipient should have received from a Commonwealth agency; (2) is less than the amount that a recipient should have received from the Commonwealth; (3) is made to a recipient who is ineligible to receive the payment from a particular Commonwealth program; (4) is ineligible; (5) is duplicative or redundant; (6) is for a service which was never received; or (7) is for a service that does not account for or was not given any of the available credits or discounts available for the service rendered. "Initiative." The Do-Not-Pay Initiative established under section 5 of the Improper Payments Elimination and Recovery Improvement Act of 2012 (Public Law 112-248, 126 Stat. 2392). "Payment." Money expended by the Commonwealth as part of the operating budget for the Commonwealth. "Secretary." The Secretary of the Budget of the Commonwealth.

  Defines key terms related to the improper payments and the initiative.

• § 3502

  (a) Participation.--A Commonwealth agency that makes payments by expending Federal funds shall enter into a memorandum of understanding with the United States Department of the Treasury to participate in the initiative. Participation in the initiative by a Commonwealth agency shall include the following: (1) The use of the initiative's online interface to verify the accuracy and integrity of payments issued by the Commonwealth agency. (2) An analytical review of the Commonwealth agency's data through the initiative to improve the data collected by the Commonwealth agency and the integrity of payments made by the Commonwealth agency.

  Mandates Commonwealth agencies that use federal funds to participate in the Do-Not-Pay Initiative.

• § 3502

  (b) Schedule.--The secretary shall establish a schedule to ensure that each Commonwealth agency under subsection (a) has entered into a memorandum of understanding to participate in the initiative within two years of the effective date of this section.

  Requires the Secretary to set a timeline for Commonwealth agencies to participate in the initiative.

• § 3502

  (c) Annual report.--A Commonwealth agency that participates in the initiative shall provide an annual report about the Commonwealth agency's participation in the initiative to the following: (1) The secretary. (2) The Office of State Inspector General. (3) The Department of Auditor General. (4) The members of the General Assembly. (5) The Legislative Budget and Finance Committee.

  Imposes a requirement for participating agencies to submit an annual report on their participation.

• § 3502

  (d) Contents of report.--The annual report under subsection (c) shall include analytical data obtained by a Commonwealth agency as a result of participating in the initiative, including, but not limited to, the following: (1) The total number of improper payments identified by the Commonwealth agency after participation in the initiative. (2) The total number of improper payments prevented by the Commonwealth agency as a result of participating in the initiative. (3) The total amount of improper payments identified and prevented by the Commonwealth agency after participating in the initiative. (4) The savings realized by the Commonwealth as a result of the Commonwealth agency's participation in the initiative. (5) Any weakness in the internal financial controls of the Commonwealth agency identified through participation in the initiative. (6) Any changes made to programs operated by the Commonwealth agency to improve payment accuracy and integrity resulting from participation in the initiative. (7) Recommendations to improve the Commonwealth agency's payment accuracy and integrity, including legislative or regulatory changes required to prevent improper payments and improve payment accuracy and integrity.

  Specifies the content requirements for the annual report submitted by Commonwealth agencies participating in the initiative.

Action History

1. January 27, 2025

   Referred to APPROPRIATIONS, Jan. 27, 2025

Sponsors

• Seth Grove · Cosponsor
• Clint Owlett · Primary
• Tina Pickett · Cosponsor
• Joe Hamm · Cosponsor
• Brad Roae · Cosponsor
• Rob W. Kauffman · Cosponsor
• Kate A. Klunk · Cosponsor
• Brenda M. Pugh · Cosponsor

Subjects