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.

PRINTER'S NO.   285

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 330
                                                 Session of
                                                   2025

     INTRODUCED BY OWLETT, PICKETT, HAMM, ROAE, KAUFFMAN AND GROVE,
        JANUARY 27, 2025

     REFERRED TO COMMITTEE ON APPROPRIATIONS, JANUARY 27, 2025


                                       AN ACT
 1   Amending Title 71 (State Government) of the Pennsylvania
 2      Consolidated Statutes, providing for improper payments;
 3      providing for participation in Do-Not-Pay Initiative; and
 4      imposing a penalty.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.    Title 71 of the Pennsylvania Consolidated
 8   Statutes is amended by adding a part to read:
 9                                    PART IV
10                               IMPROPER PAYMENTS
11   Chapter
12      35.    Do-Not-Pay Initiative
13                                  CHAPTER 35
14                             DO-NOT-PAY INITIATIVE
15   Sec.
16   3501.    Definitions.
17   3502.    Participation in initiative.
18   § 3501.    Definitions.
19      The following words and phrases when used in this chapter
 1   shall have the meanings given to them in this section unless the
 2   context clearly indicates otherwise:
 3      "Commonwealth agency."        A department, agency or commission of
 4   the Commonwealth under the policy supervision and control of the
 5   Governor.
 6      "Improper payment."     A payment made by a Commonwealth agency
 7   that:
 8             (1)   exceeds the amount that a recipient should have
 9      received from a Commonwealth agency;
10             (2)   is less than the amount that a recipient should have
11      received from the Commonwealth;
12             (3)   is made to a recipient who is ineligible to receive
13      the payment from a particular Commonwealth program;
14             (4)   is ineligible;
15             (5)   is duplicative or redundant;
16             (6)   is for a service which was never received; or
17             (7)   is for a service that does not account for or was
18      not given any of the available credits or discounts available
19      for the service rendered.
20      "Initiative."     The Do-Not-Pay Initiative established under
21   section 5 of the Improper Payments Elimination and Recovery
22   Improvement Act of 2012 (Public Law 112-248, 126 Stat. 2392).
23      "Payment."     Money expended by the Commonwealth as part of the
24   operating budget for the Commonwealth.
25      "Secretary."     The Secretary of the Budget of the
26   Commonwealth.
27   § 3502.    Participation in initiative.
28      (a)    Participation.--A Commonwealth agency that makes
29   payments by expending Federal funds shall enter into a
30   memorandum of understanding with the United States Department of

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 1   the Treasury to participate in the initiative. Participation in
 2   the initiative by a Commonwealth agency shall include the
 3   following:
 4            (1)   The use of the initiative's online interface to
 5      verify the accuracy and integrity of payments issued by the
 6      Commonwealth agency.
 7            (2)   An analytical review of the Commonwealth agency's
 8      data through the initiative to improve the data collected by
 9      the Commonwealth agency and the integrity of payments made by
10      the Commonwealth agency.
11      (b)     Schedule.--The secretary shall establish a schedule to
12   ensure that each Commonwealth agency under subsection (a) has
13   entered into a memorandum of understanding to participate in the
14   initiative within two years of the effective date of this
15   section.
16      (c)     Annual report.--A Commonwealth agency that participates
17   in the initiative shall provide an annual report about the
18   Commonwealth agency's participation in the initiative to the
19   following:
20            (1)   The secretary.
21            (2)   The Office of State Inspector General.
22            (3)   The Department of Auditor General.
23            (4)   The members of the General Assembly.
24            (5)   The Legislative Budget and Finance Committee.
25      (d)     Contents of report.--The annual report under subsection
26   (c) shall include analytical data obtained by a Commonwealth
27   agency as a result of participating in the initiative,
28   including, but not limited to, the following:
29            (1)   The total number of improper payments identified by
30      the Commonwealth agency after participation in the

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 1    initiative.
 2        (2)   The total number of improper payments prevented by
 3    the Commonwealth agency as a result of participating in the
 4    initiative.
 5        (3)   The total amount of improper payments identified and
 6    prevented by the Commonwealth agency after participating in
 7    the initiative.
 8        (4)   The savings realized by the Commonwealth as a result
 9    of the Commonwealth agency's participation in the initiative.
10        (5)   Any weakness in the internal financial controls of
11    the Commonwealth agency identified through participation in
12    the initiative.
13        (6)   Any changes made to programs operated by the
14    Commonwealth agency to improve payment accuracy and integrity
15    resulting from participation in the initiative.
16        (7)   Recommendations to improve the Commonwealth agency's
17    payment accuracy and integrity, including legislative or
18    regulatory changes required to prevent improper payments and
19    improve payment accuracy and integrity.
20    Section 2.    This act shall take effect in 90 days.




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