THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY MURT, BAKER, D. COSTA, CREIGHTON, DePASQUALE, GIBBONS, GODSHALL, GOODMAN, HARRIS, KAUFFMAN, KORTZ, RAPP, STERN, J. TAYLOR AND VULAKOVICH, APRIL 28, 2009

REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 28, 2009  

AN ACT

Prohibiting Commonwealth agencies from paying bonuses to

employees; and imposing penalties.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Commonwealth

Agency Bonus Ban Act.

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Bonus."  Any monetary compensation given to an employee

above and beyond the employee's annual salary or other rate of

pay. The term does not include the following:

(1)  Reimbursement or payments for expenses related to

official business, including, but not limited to, meals,

housing, uniforms, car allowance and other expenses.

(2)  Severance payments under a personnel compensation

plan, contract or collective bargaining agreement.

(3)  Payments for unused vacation or sick leave.

(4)  An annual cost-of-living adjustment equivalency

payment made to an individual at the maximum salary range

adopted under a personnel compensation plan or a collective

bargaining agreement.

(5)  An arbitration award.

(6)  Payments made under litigation.

(7)  Overtime payments required for work performed in

excess of the maximum workweek.

(8)  Shift differential payments, standby or call-time

payments or extra duty payments made under a collective

bargaining agreement.

"Commonwealth agency."  Any of the following:

(1)  The Governor, Lieutenant Governor, Attorney General,

Auditor General, State Treasurer and the departments,

offices, boards, authorities, commissions and other agencies

of the executive branch of the government of this

Commonwealth, whether or not subject to the supervision and

control of the Governor.

(2)  The legislative branch of the government of this

Commonwealth.

(3)  Any court and any office of the unified judicial

system of this Commonwealth.

Section 3.  Bonus ban.

No Commonwealth agency may pay a bonus to any of its

employees.

Section 4.  Penalties.

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

are paid a bonus after the effective date of this section shall

reimburse the Commonwealth for the full amount of the bonus.

(b)  Penalty.--An individual who intentionally approves or

authorizes a bonus prohibited by this act commits a misdemeanor

of the third degree.

Section 5.  Effect on compensation.

(a)  General rule.--A bonus payment made in violation of

section 3 as determined by the Commonwealth agency that made the

payment or by a court of competent jurisdiction shall not be

deemed to be compensation.

(b)  Construction.--Nothing in this act shall be deemed to

affect the definition of compensation under 71 Pa.C.S. Pt. XXV

(relating to retirement for State employees and officers) or 24

Pa.C.S. Pt. IV (relating to retirement for school employees).

Section 6.  Employment contracts to be written and open to

inspection.

A personnel compensation plan, contract or collective

bargaining agreement by a Commonwealth agency shall be in

writing and shall be a public record subject to the act of

February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law.

Section 7.  Applicability.

The provisions of this act shall not abrogate any provision

of a collective bargaining agreement or employment contract that

exists prior to the effective date of this section.

Section 8.  Effective date.

This act shall take effect in 30 days.