PRINTER'S NO. 171
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.222
Session of
2025
INTRODUCED BY PHILLIPS-HILL, PENNYCUICK, J. WARD AND DUSH,
FEBRUARY 3, 2025
REFERRED TO INTERGOVERNMENTAL OPERATIONS, FEBRUARY 3, 2025
AN ACT
Amending the act of April 9, 1929 (P.L.343, No.176), entitled
"An act relating to the finances of the State government;
providing for cancer control, prevention and research, for
ambulatory surgical center data collection , for the Joint
Underwriting Association, for entertainment business
financial management firms, for private dam financial
assurance and for reinstatement of item vetoes; providing for
the settlement, assessment, collection, and lien of taxes,
bonus, and all other accounts due the Commonwealth, the
collection and recovery of fees and other money or property
due or belonging to the Commonwealth, or any agency thereof,
including escheated property and the proceeds of its sale,
the custody and disbursement or other disposition of funds
and securities belonging to or in the possession of the
Commonwealth, and the settlement of claims against the
Commonwealth, the resettlement of accounts and appeals to the
courts, refunds of moneys erroneously paid to the
Commonwealth, auditing the accounts of the Commonwealth and
all agencies thereof, of all public officers collecting
moneys payable to the Commonwealth, or any agency thereof,
and all receipts of appropriations from the Commonwealth,
authorizing the Commonwealth to issue tax anticipation notes
to defray current expenses, implementing the provisions of
section 7(a) of Article VIII of the Constitution of
Pennsylvania authorizing and restricting the incurring of
certain debt and imposing penalties; affecting every
department, board, commission, and officer of the State
government, every political subdivision of the State, and
certain officers of such subdivisions, every person,
association, and corporation required to pay, assess, or
collect taxes, or to make returns or reports under the laws
imposing taxes for State purposes, or to pay license fees or
other moneys to the Commonwealth, or any agency thereof,
every State depository and every debtor or creditor of the
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34 Commonwealth," providing for grant oversight.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of April 9, 1929 (P.L.343, No.176), known
as The Fiscal Code, is amended by adding an article to read:
ARTICLE XVIII-B
GRANT OVERSIGHT
SUBARTICLE A
PRELIMINARY PROVISIONS
Section 1801-B. Scope of article.
This article relates to grant oversight.
Section 1802-B. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commonwealth agency." Any of the following:
(1) The Governor's Office.
(2) A department, board, commission, authority or other
agency of the Commonwealth that is subject to the policy
supervision and control of the Governor.
(3) The Office of Lieutenant Governor.
(4) An independent department.
(5) An independent agency.
"Grant." As follows:
(1) A commitment of money and programmatic authority by
a Commonwealth agency serving as the grantor to an outside
entity for the purpose of carrying out public policy or
implementing program service delivery.
(2) The term does not include a procurement in which the
grantor receives specific goods or services for the grantor's
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30 direct benefit or use.
"Grantee." An outside entity that contracts with a
Commonwealth agency to receive grant funding.
"Grantor." A Commonwealth agency administering a grant.
"Independent agency." As follows:
(1) A board, commission, authority or other agency of
the Commonwealth that is not subject to the policy
supervision and control of the Governor.
(2) The term does not include:
(i) A court or agency of the unified judicial
system.
(ii) The General Assembly or an agency of the
General Assembly.
"Independent department." Any of the following:
(1) The Department of the Auditor General.
(2) The Treasury Department.
(3) The Office of Attorney General.
(4) A board or commission of an entity under paragraph
(1), (2) or (3).
"Municipality." A county, city, borough, incorporated town
or township.
"Outside entity." As follows:
(1) A person that is not a Commonwealth agency.
(2) The term includes the following:
(i) An individual.
(ii) A municipality.
(iii) A school district.
(iv) A nonprofit organization.
(v) A service provider.
"Project." An activity, program or task that is funded
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30 through a grant.
SUBARTICLE B
REQUIREMENTS FOR GRANTS
Section 1811-B. Applicability.
This subarticle is subject to Subarticle C.
Section 1812-B. Disclosure of additional funding sources.
If money for a grant is paid by a Commonwealth agency to a
grantee but the amount is insufficient to cover the total cost
of the project and other money is being sought to fully fund the
project, the grantee shall disclose to the Commonwealth agency
the additional funding sources and identify the specific grant
subproject or category to which Commonwealth grant money will be
applied.
Section 1813-B. Use of Commonwealth funds.
Money provided by a Commonwealth agency for a grant to a
grantee shall only be used after the grantee exhausts other
sources of funding for the project that was the subject of the
grant, unless the Commonwealth agency specifically waives this
requirement in writing.
Section 1814-B. Bonuses prohibited.
(a) Prohibition.--A bonus to an individual or entity may not
be paid with any part of grant money provided by a Commonwealth
agency.
(b) Penalty.--The payment of a bonus under subsection (a)
shall automatically trigger the immediate repayment of the grant
money.
Section 1815-B. Monitoring and reporting.
A grant award shall specify the following:
(1) Regular monitoring by the Commonwealth agency
providing the grant.
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30 (2) Reporting by the grantee to the Commonwealth agency
providing the grant, at least on a semiannual basis,
regarding expenditures, performance and progress associated
with the grant.
Section 1816-B. Specific purpose.
Grant money that is not expended for the specific tasks for
which the grant was awarded shall be returned to the
Commonwealth, with interest, within 30 days of the final
closeout audit regarding the grant.
Section 1817-B. Remaining money.
The following shall apply to money designated for a project,
after the period for the grant has concluded or if the project
has been completed:
(1) If a grantee obtains money from a funding source
other than a Commonwealth agency, after the payment of grant
money by the Commonwealth agency, and if money paid by the
Commonwealth agency remains unspent, the grantee shall
reimburse the Commonwealth an amount equal to the money
received from the other funding source, up to the amount of
the grant provided by the Commonwealth agency, with interest.
(2) If a grantee obtains money from a funding source
other than a Commonwealth agency and that money remains
unspent, the grantee shall pay the Commonwealth that unspent
amount as a reimbursement of the grant money provided by the
Commonwealth agency, up to the amount of the grant provided
by the Commonwealth agency, with interest.
SUBARTICLE C
COMPETITIVE GRANTS
Section 1821-B. Scope of subarticle.
(a) Competitive application process.--This subarticle shall
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30 apply to grants awarded by a Commonwealth agency through a
competitive application process.
(b) Excluded entities.--This subarticle shall not apply to
the following:
(1) A municipality.
(2) A school district.
(3) A community college.
(4) An institution within the State System of Higher
Education.
(5) A State-related university.
Section 1822-B. Contents of grant agreement.
An agreement underlying a grant award shall contain the
following:
(1) A statement that the grantee agrees to repay the
Commonwealth the balance of the grant money paid by the
Commonwealth agency that is not expended by the grantee for
the specific purpose for which the grant was awarded.
(2) A statement that the grantee agrees, if the grantee
obtains money for the project from a funding source other
than the Commonwealth agency after payment of the grant money
by the Commonwealth agency, to reimburse the Commonwealth an
amount equal to the money received from the other funding
source. The amount shall not exceed the amount of the grant
provided by the Commonwealth agency but shall include
interest.
(3) A statement that the grantee agrees, if the
Commonwealth agency determines that the grantee
misrepresented the grantee's efforts to obtain funding as
specified under section 1823-B(1)(ii), to repay the
Commonwealth the full amount of the grant plus a 10% penalty
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30 on the face amount of the grant.
(4) A statement that the grantee agrees that the
Commonwealth agency may set off the amount of any State tax
liability or other obligation of the grantee or its
subsidiaries to the Commonwealth against any payments due to
the grantee under the grant.
(5) Clear procedures for the Commonwealth agency to
enforce the agreement and obtain repayment in light of a
breach of the agreement or failure of the grantee to comply
with this article.
Section 1823-B. Payment to grantee.
A grant may not be paid by a Commonwealth agency to a grantee
unless:
(1) The grantee has demonstrated the following to the
satisfaction of the Commonwealth agency through written
documentation:
(i) That the grantee has exercised due diligence in
making reasonable efforts to obtain funding from other
sources for the expenses for which the grant is being
requested.
(ii) The results of the grantee's efforts under
subparagraph (i).
(iii) The projected total cost of the project that
is subject to the grant.
(2) The grantee has acted in accordance with the
conditions specified under section 1822-B(1), (2), (3) and
(4).
Section 1824-B. Competitive application process.
Subject to 62 Pa.C.S. (relating to procurement) and unless
otherwise provided in enabling legislation for the allocation of
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30 grants, an award of a grant by a Commonwealth agency that will
involve a project for construction, production, machinery,
equipment or services exceeding $10,000 shall be made only after
a competitive application process.
Section 1825-B. Misrepresentation.
If a Commonwealth agency determines that a grantee
misrepresented the grantee's efforts to obtain funding as
provided under section 1823-B(1)(ii), the grantee shall repay
the Commonwealth the full amount of the grant plus a 10% penalty
on the face amount of the grant.
Section 2. This act shall apply to an agreement underlying a
grant award that is made on or after the effective date of this
section.
Section 3. This act shall take effect in 60 days.
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