AN ACT

 

1Prohibiting Commonwealth agencies from paying bonuses to
2employees; and imposing penalties.

3The General Assembly of the Commonwealth of Pennsylvania
4hereby enacts as follows:

5Section 1. Short title.

6This act shall be known and may be cited as the Commonwealth
7Agency Bonus Ban Act.

8Section 2. Definitions.

9The following words and phrases when used in this act shall
10have the meanings given to them in this section unless the
11context clearly indicates otherwise:

12"Bonus." Any monetary compensation given to an employee
13above and beyond the employee's annual salary or other rate of
14pay. The term does not include the following:

15(1) Reimbursement or payments for expenses related to
16official business, including, but not limited to, meals,
17housing, uniforms, car allowance and other expenses.

1(2) Severance payments under a personnel compensation
2plan, contract or collective bargaining agreement.

3(3) Payments for unused vacation or sick leave.

4(4) An annual cost-of-living adjustment equivalency
5payment made to an individual at the maximum salary range
6adopted under a personnel compensation plan or a collective
7bargaining agreement.

8(5) An arbitration award.

9(6) Payments made under litigation.

10(7) Overtime payments required for work performed in
11excess of the maximum workweek.

12(8) Shift differential payments, standby or call-time
13payments or extra duty payments made under a collective
14bargaining agreement.

15"Commonwealth agency." Any of the following:

16(1) The Governor, Lieutenant Governor, Attorney General,
17Auditor General, State Treasurer and the departments,
18offices, boards, authorities, commissions and other agencies
19of the executive branch of the government of this
20Commonwealth, whether or not subject to the supervision and
21control of the Governor.

22(2) The legislative branch of the government of this
23Commonwealth.

24(3) Any court and any office of the unified judicial
25system of this Commonwealth.

26Section 3. Bonus ban.

27No Commonwealth agency may pay a bonus to any of its
28employees.

29Section 4. Penalties.

30(a) Reimbursement.--Employees of Commonwealth agencies who

1are paid a bonus after the effective date of this section shall
2reimburse the Commonwealth for the full amount of the bonus.

3(b) Penalty.--An individual who intentionally approves or
4authorizes a bonus prohibited by this act commits a misdemeanor
5of the third degree.

6Section 5. Effect on compensation.

7(a) General rule.--A bonus payment made in violation of
8section 3 as determined by the Commonwealth agency that made the
9payment or by a court of competent jurisdiction shall not be
10deemed to be compensation.

11(b) Construction.--Nothing in this act shall be deemed to
12affect the definition of compensation under 71 Pa.C.S. Pt. XXV
13(relating to retirement for State employees and officers) or 24
14Pa.C.S. Pt. IV (relating to retirement for school employees).

15Section 6. Employment contracts to be written and open to
16inspection.

17A personnel compensation plan, contract or collective
18bargaining agreement by a Commonwealth agency shall be in
19writing and shall be a public record subject to the act of
20February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law.

21Section 7. Applicability.

22The provisions of this act shall not abrogate any provision
23of a collective bargaining agreement or employment contract that
24exists prior to the effective date of this section.

25Section 8. Effective date.

26This act shall take effect in 30 days.