1Amending Title 64 (Public Authorities and Quasi-Public
2Corporations) of the Pennsylvania Consolidated Statutes,
3providing for the delinquent tax intercept authority.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Title 64 of the Pennsylvania Consolidated
7Statutes is amended by adding a chapter to read:

8CHAPTER 62

9DELINQUENT TAX INTERCEPT AUTHORITY

10Subchapter

11A. General Provisions

12B. Structure and Powers

13C. Accounts

14D. Delinquent Tax Intercept Program

15E. Executive Agencies

16F. Nonexecutive Governmental Agencies

17SUBCHAPTER A

18GENERAL PROVISIONS

1Sec.

26201. Scope.

36202. Construction.

46203. Definitions.

5§ 6201. Scope.

6This chapter relates to the Delinquent Tax Intercept
7Authority.

8§ 6202. Construction.

9This chapter shall be liberally construed in order to affect
10the public purposes of this chapter.

11§ 6203. Definitions.

12The following words and phrases when used in this chapter
13shall have the meanings given to them in this section unless the
14context clearly indicates otherwise:

15"Authority." The Delinquent Tax Intercept Authority
16established in section 6211 (relating to authority).

17"Board." The board of the Delinquent Tax Intercept Authority
18established in section 6212 (relating to board).

19"Certified Commonwealth income tax obligation." A final
20Commonwealth income tax obligation which has been certified by
21the office.

22"Certified debt." Any of the following:

23(1) A final claim which has been certified by the
24office.

25(2) A final claim which has been certified by the
26governing body of a government agency which is not an
27executive agency.

28(3) A final claim which has been certified by the
29governing body of a government agency which is not an
30executive agency.

1"Claims." An amount owed to a Federal agency or government
2agency. The term includes taxes, fines, fees, interest and civil
3penalties. The term does not include:

4(1) A court-ordered child support obligation.

5(2) A Federal tax liability.

6(3) An obligation which is less than $25.

7(4) An obligation secured by collateral.

8"Commonwealth agency." An executive agency, an independent
9agency or a State-affiliated entity.

10"Commonwealth income tax obligation." An obligation owed the
11Commonwealth under Article III or IV under the act of March 4,
121971 (P.L.6, No.2), known as the Tax Reform Code of 1971.

13"Debtor." A person that owes a claim to a Federal agency or
14that owes a certified debt to a government agency.

15"Executive agency." The Governor and the departments,
16boards, commissions, authorities and other officers and agencies
17of the Commonwealth. The term does not include a court or other
18officer or agency of the Unified Judicial System, the General
19Assembly and its officers and agencies, an independent agency, a
20State-affiliated entity, a State-related institution, a
21political subdivision, a municipal authority or a local,
22regional or metropolitan transportation authority.

23"Federal agency." The United States of America, the
24President of the United States of America, the Congress and any
25department, corporation, agency or instrumentality designated or
26established by the United States of America.

27"Federal payment." A payment to be made by a Federal agency
28to a person. The term does not include any of the following:

29(1) A Federal tax refund payment.

30(2) A Federal payment for salary, wage, pensions or

1other compensation to or on behalf of an employee of a
2Federal agency.

3(3) A payment due an individual under the Social
4Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.).

5(4) A payment due an individual under Part B of the
6Black Lung Benefits Act (Public Law 91-173, 30 U.S.C. §§ 921,
7922, 923, 924 and 925).

8(5) A payment due an individual under any law
9administered by the Railroad Retirement Board.

10(6) Any other payment excluded by the Secretary of the
11United States Treasury under the Treasury Offset Program.

12"Federal tax payment." A Federal tax refund payment to be
13made by a Federal agency to a person.

14"Final claim." A claim which remains unpaid or uncollected
15for a period exceeding 30 days from the date the right to appeal
16or contest the claim expired.

17"Final Commonwealth income tax obligation." A Commonwealth
18income tax obligation which remains unpaid or uncollected for a
19period exceeding 30 days from the date the right to appeal or
20contest the obligation expired.

21"Government agency." A Commonwealth agency; the unified
22judicial system and its courts, officers and agencies; a
23political subdivision; a municipal authority or a metropolitan,
24regional or local transportation authority.

25"Governing body." The court, body or board authorized by law
26to adopt binding resolutions or enact ordinances for a
27government agency.

28"Independent agency." A board, commission or other agency or 
29officer of the Commonwealth which is not subject to the policy, 
30supervision and control of the Governor. The term does not
 

1include a court or other officer or agency of the unified 
2judicial system, the General Assembly and its officers and 
3agencies, an executive agency, a State-affiliated entity, a 
4State-related institution, a political subdivision, a municipal 
5authority or a metropolitan, regional or local transportation 
6authority.

7"Metropolitan, regional or local transportation authority."
8An entity meeting the definition of an authority under 74
9Pa.C.S. § 1701 (relating to definitions).

10"Municipal authority." A public authority created under 53
11Pa.C.S. Ch. 56 (relating to municipal authorities) or under the
12former act of May 2, 1945 (P.L.382, No.164), known as the
13Municipality Authorities Act of 1945.

14"Office." The Office of the Budget.

15"Payee." A debtor owed a payment from a Federal agency or an
16executive agency.

17"Political subdivision." As that term is defined in 1
18Pa.C.S. § 1991 (relating to definitions).

19"Program." The Delinquent Tax Intercept Program established
20in Subchapter D (relating to Delinquent Tax Intercept Program).

21"Secretary." The Secretary of the Budget of the
22Commonwealth.

23"State-affiliated entity." A Commonwealth authority or a
24Commonwealth entity. The term includes the Pennsylvania Turnpike
25Commission, the Pennsylvania Housing Finance Agency, the
26Commonwealth Financing Authority, the Pennsylvania Municipal
27Retirement System, the Pennsylvania Infrastructure Investment
28Authority, the State Public School Building Authority, the
29Pennsylvania Higher Educational Facilities Authority and the
30State System of Higher Education. The term does not include a

1court or other officer or agency of the unified judicial system,
2the General Assembly and its officers and agencies, an executive
3agency, a State-related institution, a political subdivision, a
4municipal authority or a metropolitan, regional or local
5transportation authority.

6"State-related institution." The Pennsylvania State
7University, the University of Pittsburgh, Lincoln University or
8Temple University.

9"State payment." A payment to be made by an executive agency
10to a person. The term does not include any of the following:

11(1) Payments for salary, wage, pension or other
12compensation to or on behalf of an employee of an executive
13agency.

14(2) Payments to be made to an individual under the act
15of June 13, 1967 (P.L.31, No.21), known as the Public Welfare
16Code.

17(3) Payments to be made to an individual under the act
18of June 2, 1915 (P.L.736, No.338), known as the Workers'
19Compensation Act.

20(4) Payments to be made to an individual under the act
21of December 5, 1936 (2nd Sp.Sess., P.L.2897, No.1), known as
22the Unemployment Compensation Law.

23"Treasury Offset Program." The program authorized under 31
24U.S.C. § 3716 (relating to administrative offset).

25SUBCHAPTER B

26STRUCTURE AND POWERS

27Sec.

286211. Authority.

296212. Board.

306213. Powers.

1§ 62ll. Authority.

2(a) Establishment.--The Delinquent Tax Intercept Authority
3is established as an independent authority. The authority shall
4be an instrumentality of the Commonwealth and a body corporate
5and politic, with corporate succession.

6(b) Governance.--The authority shall be governed by the
7board. The powers of the authority shall be exercised by the
8board.

9(c) Expenses.--Expenses of the authority shall be paid from
10income of the authority. Except as provided in this chapter or
11by other law, the Commonwealth shall not be responsible for
12funding the expenses of the authority.

13(d) Fiscal year.--The fiscal year of the authority shall be
14the same as the fiscal year of the Commonwealth.

15(e) Audit.--­

16(1) The accounts and books of the authority shall be
17examined and audited annually by an independent certified
18public accounting firm.

19(2) The authority shall, by December 31 of each year,
20file a copy of the audit required by paragraph (1) with the
21Secretary of the Senate and the Chief Clerk of the House of
22Representatives.

23(f) Publication of financial statement.--The authority shall
24annually publish a concise financial statement in the
25Pennsylvania Bulletin.

26(g) Cooperation.--Executive agencies shall cooperate with
27and provide assistance to the authority without financial
28reimbursement.

29(h) Existence and dissolution.--­

30(1) The authority shall exist until terminated by law.

1(2) The authority may be dissolved by law if all
2outstanding liabilities of the authority have been fully
3paid, or provision has been made for payment. Upon the
4dissolution of the authority, all funds, assets and other
5property of the authority shall vest in the Commonwealth.

6(i) Procurement.--The authority shall be considered an
7independent agency for the purposes of 62 Pa.C.S. Pt. I
8(relating to Commonwealth procurement code).

9(j) Relationship with office.-­-

10(1) The office shall provide administrative services and
11staff to the authority and the board. The authority shall
12reimburse the office for the cost of providing the

13administrative services and staff.

14(2) The authority may enter into agreements with the
15office stating the rights and obligations each party has to
16each other in carrying out their respective responsibilities
17under and to further the intent of this chapter.

18(k) Applicability.--The following acts shall apply to the
19authority and the board:

20(1) The act of February 14, 2008 (P.L.6, No.3), known as
21the Right-to-Know Law.

22(2) The act of July 19, 1957 (P.L.1017, No.45l), known
23as the State Adverse Interest Act.

24(3) The provisions of 65 Pa.C.S. Chs. 7 (relating to
25open meetings) and 11 (relating to ethics standards and
26financial disclosure).

27§ 6212. Board.

28(a) Composition.--The board shall be composed of the
29following members:

30(1) The State Treasurer or a designee.

1(2) The Attorney General or a designee.

2(3) The Secretary of the Budget or a designee.

3(4) The Secretary of Community and Economic Development
4or a designee.

5(5) One individual appointed by the Governor.

6(6) Four legislative appointees.

7(i) Appointments shall be as follows:

8(A) One individual who is a member of the
9government of a city of the third class and who shall
10be appointed by the President pro tempore of the
11Senate.

12(B) One individual who is a member of the
13government of a township of the first or second class
14and who shall be appointed by the Minority Leader of
15the Senate.

16(C) One individual who is a member of the
17government of a city of the first or second class and
18who shall be appointed by the Speaker of the House of
19Representatives.

20(D) One individual who is a member of a school
21board and who shall be appointed by the Minority
22Leader of the House of Representatives.

23(ii) Legislative appointees shall serve at the
24pleasure of the appointing authority.

25(iii) An individual appointed to the board pursuant
26to subparagraph (i) may not be a member of the General
27Assembly or staff of a member of the General Assembly.

28(b) Organization.--The Governor shall select a member of the
29board to serve as chairperson. The members shall select from
30among themselves such officers as they shall determine.

1(c) Meetings.--The board shall meet at the call of the
2chairperson.

3(d) Quorum.--Five members of the board shall constitute a
4quorum, and the following shall apply:

5(1) The consent of at least five members of the board,
6with at least four of the consenting members having been
7appointed under subsection (a)(6), shall be necessary to take
8action on behalf of the authority for any of the following:

9(i) Adopting bylaws.

10(ii) Hiring professionals under section 6213(a)(5)
11and (6) (relating to powers).

12(iii) Modifying or terminating a contract assumed
13under section 6213(b) (relating to powers).

14(2) The consent of at least five members of the board
15shall be necessary to take any other action on behalf of the
16authority.

17(e) Compensation.--The members of the board shall not be
18entitled to compensation for their services as members of the
19board but shall be entitled to reimbursement for all necessary
20and reasonable expenses incurred in connection with the
21performance of their duties as members of the board.

22(f) Liability.--Members of the board shall not be personally
23liable for any debt of the authority.

24(g) Initial appointment and vacancy.--Appointing authorities
25shall appoint the initial members to the board within 30 days of
26the effective date of this section. Whenever a vacancy occurs on
27the board, the appointing authority shall appoint a successor
28member within 30 days of the vacancy.

29§ 6213. Powers.

30(a) Powers.--The authority may:

1(1) Adopt bylaws and guidelines proposed by the office
2as necessary.

3(2) Sue and be sued, implead and be impleaded,
4interplead, complain and defend in any court.

5(3) Adopt, use and alter a corporate seal. No seal shall
6be required to take official action.

7(4) Establish accounts necessary or desirable for its
8corporate purposes.

9(5) Employ an executive director.

10(6) Retain attorneys, accountants, auditors and
11financial experts to render services and engage the services
12of other advisors, consultants and agents as necessary. For
13the purposes of this paragraph, the authority shall be
14considered an independent agency for purposes of the act of
15October 15, 1980 (P.L.950, No.164), known as the Commonwealth
16Attorneys Act.

17(7) Pay or satisfy debts of the authority.

18(8) Contract and execute instruments.

19(9) Impose and collect surcharges in connection with the
20offsetting of debts on behalf of Federal agencies and of
21certified debts on behalf of governmental agencies.

22(10) Agree to and comply with conditions attached to
23Federal or Commonwealth funds not inconsistent with the
24provisions of this chapter.

25(11) Exercise rights provided by law for the benefit or
26protection of the authority, a Federal agency or a government
27agency.

28(12) Invest money of the authority not required for
29immediate use, as the board determines.

30(13) Procure insurance against any loss in connection

1with its property and other assets.

2(14) Promulgate regulations and adopt guidelines and
3statements of policy containing restrictions as it may deem
4necessary and appropriate to effectuate the public purposes
5of this chapter.

6(15) Perform any other appropriate act necessary or
7convenient to:

8(i) carry out and effectuate the purposes of this
9chapter; or

10(ii) exercise the powers enumerated in this
11subsection, including any act reasonably implied from
12those powers.

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

14(1) Assume the rights, obligations, duties and
15responsibilities of the office under an agreement between the
16office and a Federal agency relating to the participation of
17the Commonwealth in the Treasury Offset Program.

18(2) Assume the rights, obligations, duties and
19responsibilities of the office under any contract for
20services relating to the participation of the Commonwealth in
21the Treasury Offset Program.

22(3) Reimburse the office for costs the office incurred
23under any agreement or contract the authority assumes under
24paragraphs (1) and (2).

25(4) Administer the program established in Subchapter D
26(relating to delinquent tax intercept program) in accordance
27with this chapter and the requirements of the Treasury Offset
28Program.

29SUBCHAPTER C

30ACCOUNTS

1Sec.

26221. Trust accounts.

36222. Governmental agency payments.

46223. Administrative accounts.

5§ 622l. Trust accounts.

6The authority shall establish one or more trust accounts in
7the State Treasury for each government agency that elects to
8submit certified debts to the authority for offset against
9payments to be made by a Federal agency or against State
10payments to be made by an executive agency. Offsets for
11certified debts received by the authority under the program
12shall be deposited into the trust account of the government
13agency that certified the final claim upon which the offset was
14made.

15§ 6222. Governmental agency payments.

16On the last Friday of each month, the authority shall pay to
17a government agency that elects to submit certified debts to the
18authority under the program the moneys in the trust account
19established for the government agency.

20§ 6223. Administrative accounts.

21The authority shall establish one or more administrative
22accounts in the State Treasury. Surcharges imposed by the
23authority under the program shall be deposited into the
24administrative accounts for use by the authority.

25SUBCHAPTER D

26DELINQUENT TAX INTERCEPT PROGRAM

27Sec.

286231. Federal agreements.

296232. Government agency agreements.

306233. Placement.

16234. Duration.

26235. Notification of offset.

36236. Removal.

46237. Surcharge.

56238. Application of offsets.

66239. Applicability of existing statutes.

76240. Immunity.

8§ 6231. Federal agreements.

9(a) Federal and Commonwealth offsets.--The authority, in
10cooperation with the office, may enter into an agreement with a
11Federal agency to participate in the Treasury Offset Program for
12the offset of Commonwealth income tax obligations and Federal
13tax payments. The agreement shall provide for the authority to
14submit the sum of a certified Commonwealth income tax obligation
15and the surcharge imposed by the authority for offset against
16Federal tax payments. The agreement shall provide for any debtor
17notification and remedy or other requirements necessary for
18participation in the Treasury Offset Program and shall require
19the Federal agency or Commonwealth to provide the authority with
20all of the following:

21(1) The name of the debtor.

22(2) The last known address of the debtor.

23(3) The Social Security number or other tax
24identification number of the debtor.

25(4) The sum of the certified Commonwealth income tax
26obligation and the surcharge.

27(5) The date on which the certified Commonwealth income
28tax obligation became delinquent.

29(6) The name, address and telephone number of the
30Commonwealth department to which questions may be directed.

1(7) Written certification by the Commonwealth of the
2certified Commonwealth income tax obligation.

3(8) Any other information deemed necessary by the
4Federal agency.

5(b) Federal government agency offsets.--The authority, in
6cooperation with the office, may enter into an agreement with a
7Federal agency to participate in the Treasury Offset Program for
8the offset of any nontax debts owed to a Federal agency and of
9any certified debts owed to a government agency. The agreement
10shall provide for the Federal agency to submit the sum of a
11nontax debt owed to a Federal agency and the surcharge imposed
12by the authority for offset against State payments to be made by
13an executive agency. The agreement shall also provide for the
14authority to submit the sum of a certified debt owed to a
15government agency and the surcharge imposed by the authority for
16offset against Federal payments to be made by a Federal agency.
17The agreement shall provide for any debtor notification and
18remedy or other requirements necessary for participation in the
19Treasury Offset Program and shall require the Federal agency or
20government agency to provide the authority with all of the
21following:

22(1) The name of the debtor.

23(2) The last known address of the debtor.

24(3) The Social Security number or other tax
25identification number of the debtor.

26(4) The sum of the nontax debt or certified debt and the
27surcharge.

28(5) The date on which the nontax debt or certified debt
29became delinquent.

30(6) The name, address and telephone number of the

1Federal agency owed the nontax debt or of the government
2agency owed the certified debt.

3(7) Written certification by the government official or
4governing body certifying the nontax debt or certified debt.

5(8) Any other information deemed necessary by the
6Federal agency.

7§ 6232. Government agency agreements.

8The authority, in cooperation with the office, may enter into
9an agreement with a government agency for the offset of
10certified debts owed to the government agency. The agreement
11shall provide for the government agency to submit the sum of a
12certified debt owed to the government agency and the surcharge
13imposed by the authority for offset against Federal payments to
14be made by a Federal agency in accordance with an agreement
15entered into under section 6231(b) (relating to Federal
16agreements) and against State payments to be made by an
17executive agency. The agreement shall provide for any debtor
18notification and remedy or other requirements necessary for
19participation in the program and in the Treasury Offset Program
20and shall require the government agency to provide the authority
21with all of the following:

22(1) The name of the debtor.

23(2) The last known address of the debtor.

24(3) The Social Security number or other tax
25identification number of the debtor.

26(4) The sum of the certified debt and the surcharge.

27(5) The date on which the certified debt became
28delinquent.

29(6) The name, address and telephone number of the
30government agency owed the certified debt.

1(7) Written annual certification by the government
2official or by the governing body, which is certifying the
3certified debt.

4(8) Any other information deemed necessary by the
5authority or the Federal agency or which is required for
6participation in the Treasury Offset Program.

7§ 6233. Placement.

8(a) Certified Commonwealth income tax obligations.--Upon
9receiving a request from the office, the authority shall attempt
10to offset the following:

11(1) the sum of:

12(i) the certified Commonwealth income tax
13obligation; and

14(ii) the surcharge imposed by the authority;

15against

16(2) any Federal tax payments to be made by a Federal
17agency.

18(b) Federal nontax debt and certified debt.--Upon receiving
19a request from a Federal agency or a government agency, the
20authority shall attempt to offset the following:

21(1) the sum of:

22(i) the certified debt owed to a government agency
23or the nontax debt owed to a Federal agency; and

24(ii) the surcharge imposed by the authority;

25against

26(2) any Federal payments to be made by a Federal agency
27and any State payments to be made by an executive agency.

28§ 6234. Duration.

29(a) Federal debts.--Unless otherwise stated in the agreement
30required by section 6231(b) (relating to Federal agreements),

1the authority shall continue to attempt to offset a nontax debt
2owed to a Federal agency against a State payment to be made by
3an executive agency until one of the following occurs:

4(1) the nontax debt is paid in full; or

5(2) the Federal agency notifies the authority to cease
6attempts to offset the nontax debt.

7(b) Commonwealth income tax obligations.--The authority
8shall continue to attempt to offset a certified Commonwealth
9income tax obligation against a Federal tax payment to be made
10by a Federal agency until one of the following occurs;

11(1) the certified Commonwealth income tax obligation is
12paid in full; or

13(2) the office notifies the authority to cease attempts
14to offset the certified Commonwealth income tax obligation.

15(c) Government debts.--The authority shall continue to
16attempt to offset a certified debt owed to a government agency
17against a Federal payment to be made by a Federal agency or
18against a State payment to be made by an executive agency until
19one of the following occurs:

20(1) the certified debt is paid in full; or

21(2) the government agency notifies the authority to
22cease attempts to offset the certified debt.

23§ 6235. Notification of offset.

24Upon an offset being made, the authority shall notify the
25payee of all of the following:

26(1) The date the offset occurred.

27(2) The type and amount of the payment that was offset.

28(3) The identity of the Federal agency or government
29agency which requested the offset.

30(4) The name, address and telephone number of the

1Federal agency or of the government agency which requested
2the offset.

3(5) Any other information required for participation in
4the Treasury Offset Program.

5§ 6236. Removal.

6Unless otherwise stated in the agreement required by section
76231(b) (relating to Federal agreements), a Federal agency may
8at any time request the authority to remove a nontax debt from
9the program. A government agency may at any time request the
10authority to remove a certified debt from the program.

11§ 6237. Surcharge.

12The authority shall establish and impose a surcharge on each
13offset made against a Federal tax payment or Federal payment to
14be made by a Federal agency and on each offset made against a
15State payment to be made by an executive agency. The surcharge
16shall be a uniform percentage sufficient to fully fund the
17operation of the authority.

18§ 6328. Application of offsets.

19Offsets shall be applied with respect to each debtor in the
20following order:

21(1) The surcharge imposed by the authority for an
22offset.

23(2) The certified Commonwealth tax obligation.

24(3) The certified debt owed to a government agency in
25the date order the certified debt was received by the
26authority.

27(4) The nontax debt owed to a Federal agency.

28§ 6239. Applicability of existing statutes.

29(a) Right-to-Know Law.--The act of February 14, 2008 (P.L.6,
30No.3), known as the Right-to-Know Law, does not apply to the

1program. Data, records and files containing information related
2to a debtor and which are utilized for the program shall be
3deemed confidential and privileged.

4(b) Tax Reform Code of 1971.--The restrictions on the
5sharing of information gained by the Department of Revenue under
6the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
7Code of 1971, are inapplicable to the sharing of that
8information by the Department of Revenue with the authority
9insofar as the information is necessary to accomplish the
10program.

11§ 6240. Immunity.

12The authority shall be immune from suit by debtors as to the
13validity of a nontax debt owed a Federal agency, of a certified
14Commonwealth income tax obligation owed the Commonwealth or of a
15certified debt owed a government agency.

16SUBCHAPTER E

17EXECUTIVE AGENCIES

18Sec.

196251. Office of the Budget.

206252. Executive agencies.

216253. Certification and placement.

226254. Duration of placement.

23§ 6251. Office of the Budget.

24(a) Assignment.--If the office enters into an agreement or a
25contract authorizing or relating to participation of the
26Commonwealth in the Treasury Offset Program under section 6231
27(relating to Federal agreements), the office shall assign the
28rights, obligations, duties and responsibilities of the office
29under all of the following to the authority:

30(1) The agreement with the Federal agency authorizing

1participation of the Commonwealth in the Treasury Offset
2Program.

3(2) Any contract purchasing services relating to the
4participation of the Commonwealth in the Treasury Offset
5Program.

6(b) Review.--If the office entered into an agreement
7relating to participation of the Commonwealth in the Treasury
8Offset Program under section 6231(b), the office shall review
9each type of claim imposed, charged or collected by an executive
10agency and each type of State payment made by an executive
11agency to determine the appropriate time for the type of claim
12or type of State payment to be added to the program.

13(c) Determination.--If the office determines that it is
14appropriate to add a type of claim or type of State payment to
15the program, the office shall notify the executive agency which
16is responsible by law for the collection of the type of claim or
17for making the type of payment.

18§ 6252. Executive agencies.

19(a) Commonwealth income tax obligations.--The Department of
20Revenue shall, by the third Monday of each month, determine if
21each unpaid or uncollected Commonwealth income tax obligation is
22a final Commonwealth income tax obligation as of the third
23Monday of each month. If the Department of Revenue determines
24that the Commonwealth income tax obligation is a final
25Commonwealth income tax obligation, the Department of Revenue
26shall notify the office of the final Commonwealth income tax
27obligation. The notice shall be in the form and manner as
28required by the office.

29(b) Claims.--Upon being notified by the office under section
306251 (relating to Office of the Budget), each executive agency

1which is responsible by law for the collection of a claim shall,
2by the third Monday of each month, determine if each unpaid or
3uncollected claim is a final claim as of the third Monday of
4each month. If the executive agency determines that the claim is
5a final claim, the executive agency shall notify the office of
6the final claim. The notice shall be in the form and manner as
7required by the office.

8§ 6253. Certification and placement.

9(a) Final Commonwealth income tax obligations.--Upon receipt
10of a notice under section 6252(a) (relating to executive
11agencies), the office shall certify the final Commonwealth
12income tax obligation as a certified final income tax obligation
13owed to the Commonwealth and shall request the authority to
14obtain offset of the certified Commonwealth income tax
15obligation under the program. The request and the information
16relating to the certified Commonwealth income tax obligation
17shall be in the form and manner required by the authority.

18(b) Final claims.--Upon receipt of a notice under section
196252(b), the office shall certify the final claim as a certified
20debt owed to the Commonwealth and shall request the authority to
21obtain offset of the certified debt under the program. The
22request and the information relating to the certified debt shall
23be in the form and manner required by the authority.

24§ 6254. Duration of placement.

25The office shall request the authority to obtain offset of
26the certified Commonwealth income tax obligation or certified
27debt until one of the following occurs:

28(1) the certified Commonwealth income tax obligation or
29certified debt is paid in full; or

30(2) upon good cause shown, the secretary requests the

1certified Commonwealth income tax obligation or certified
2debt be removed from the program.

3SUBCHAPTER F

4NONEXECUTIVE GOVERNMENTAL AGENCIES

5Sec.

66271. Certain government agencies.

76272. Certification and placement.

86273. Duration of placement.

9§ 6271. Certain government agencies.

10The governing body of a government agency which is not an
11executive agency may enter into an agreement with the authority
12to submit certified debts owed to the government agency to the
13authority for offset against Federal payments to be made by a
14Federal agency in accordance with an agreement entered into
15under section 6232(b) (relating to government agency agreements)
16or against State payments to be made by an executive agency
17under the program.

18§ 6272. Certification and placement.

19Upon entering into an agreement with the authority in
20accordance with section 6271 (relating to certain government
21agencies), the governing body shall certify each final claim
22which it elects to include in the program as a debt owed to the
23government agency. Upon certification, the government agency may
24request the authority to obtain offset of the certified debt
25under the program. The request and the information relating to
26the certified debt shall be in the form and manner required by
27the authority.

28§ 6273. Duration of placement.

29A government agency may request the authority to obtain
30offset of the certified debt until one of the following occurs:

1(1) the certified debt is paid in full; or

2(2) the government agency requests the certified debt be
3removed from the program.

4Section 2. This act shall take effect immediately.