S 2519 ISCommentsClose CommentsPermalink

To prohibit the awarding of a contract or grant in excess of the simplified acquisition threshold unless the prospective contractor or grantee certifies in writing to the agency awarding the contract or grant that the contractor or grantee has no seriously delinquent tax debts, and for other purposes.CommentsClose CommentsPermalink

December 19, 2007

Mr. REID (for Mr. OBAMA) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental AffairsCommentsClose CommentsPermalink

To prohibit the awarding of a contract or grant in excess of the simplified acquisition threshold unless the prospective contractor or grantee certifies in writing to the agency awarding the contract or grant that the contractor or grantee has no seriously delinquent tax debts, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the `Contracting and Tax Accountability Act of 2007'.CommentsClose CommentsPermalink

SEC. 2. GOVERNMENTAL POLICY.

It is the policy of the United States Government that no Government contracts or grants should be awarded to individuals or companies with seriously delinquent Federal tax debts.CommentsClose CommentsPermalink

SEC. 3. PROHIBITION ON AWARDING OF CONTRACTS TO DELINQUENT FEDERAL DEBTORS.

Section 3720B of title 31, United States Code, is amended--CommentsClose CommentsPermalink





(1) in the section heading, by adding at the end `or contracts';CommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





`(c)(1) Unless this subsection is waived by the head of a Federal agency, a person who has a seriously delinquent tax debt shall be proposed for debarment from any contract awarded by the Federal government pursuant to procedures established by regulation by the Administrator for Federal Procurement Policy.CommentsClose CommentsPermalink





`(2) The head of any Federal agency that issues an invitation for bids or a request for proposals for a negotiated acquisition shall require each person that submits a bid or proposal to submit with the bid or proposal a form--CommentsClose CommentsPermalink





`(A) certifying that the person does not have a seriously delinquent tax debt; andCommentsClose CommentsPermalink





`(B) authorizing the Secretary of the Treasury to disclose to the head of the agency information limited to describing whether the person has a seriously delinquent tax debt.CommentsClose CommentsPermalink





`(3) The Secretary shall develop and make available to all Federal agencies a standard form for the certification and authorization described in paragraph (2).CommentsClose CommentsPermalink





`(4) Not later than 270 days after the date of enactment of this subsection, the Administrator for Federal Procurement Policy shall issue revised regulations to incorporate the requirements of this subsection.CommentsClose CommentsPermalink





`(5) For purposes of this subsection:CommentsClose CommentsPermalink





`(A) The term `contract' means a binding agreement entered into by a Federal agency for the purpose of obtaining property or services, but does not include--CommentsClose CommentsPermalink





`(i) a contract designated by the head of the agency as assisting the agency in the performance of disaster relief authorities; orCommentsClose CommentsPermalink





`(ii) a contract designated by the head of the agency as necessary to the national security of the United States.CommentsClose CommentsPermalink





`(B)(i) The term `person' includes--CommentsClose CommentsPermalink





`(I) an individual;CommentsClose CommentsPermalink





`(II) a partnership; andCommentsClose CommentsPermalink





`(III) a corporation.CommentsClose CommentsPermalink





`(ii) A partnership shall be treated as a person with a seriously delinquent tax debt if such partnership has a partner who--CommentsClose CommentsPermalink





`(I) holds an ownership interest of 50 percent or more in that partnership; andCommentsClose CommentsPermalink





`(II) who has a seriously delinquent tax debt.CommentsClose CommentsPermalink





`(iii) A corporation shall be treated as a person with a seriously delinquent tax debt if such corporation has an officer or a shareholder who--CommentsClose CommentsPermalink





`(I) holds 50 percent or more, or a controlling interest that is less than 50 percent, of the outstanding shares of corporate stock in that corporation; andCommentsClose CommentsPermalink





`(II) who has a seriously delinquent tax debt.CommentsClose CommentsPermalink





`(C)(i) The term `seriously delinquent tax debt' means an outstanding debt under the Internal Revenue Code of 1986 for which a notice of lien has been filed in public records pursuant to section 6323 of such Code.CommentsClose CommentsPermalink





`(ii) Such term does not include--CommentsClose CommentsPermalink





`(I) a debt that is being paid in a timely manner pursuant to an agreement under section 6159 or section 7122 of such Code; andCommentsClose CommentsPermalink





`(II) a debt with respect to which a collection due process hearing under section 6330 of such Code, or relief under subsection (a), (b), or (f) of section 6015, is requested or pending.'.CommentsClose CommentsPermalink

SEC. 4. PROHIBITION ON AWARDING OF GRANTS TO DELINQUENT FEDERAL DEBTORS.

(a) In General- The head of any Executive agency that offers a grant in excess of an amount equal to the simplified acquisition threshold (as defined in section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 401(11)) may not award such grant to any person unless such person submits with the application for such grant a form--CommentsClose CommentsPermalink





(1) certifying that the person does not have a seriously delinquent tax debt; andCommentsClose CommentsPermalink





(2) authorizing the Secretary of the Treasury to disclose to the head of the Executive agency information limited to describing whether the person has a seriously delinquent tax debt.CommentsClose CommentsPermalink





(b) Release of Information- The Secretary shall develop and make available to all Executive agencies a standard form for the certification and authorization described in subsection (a)(2).CommentsClose CommentsPermalink





(c) Revision of Regulations- Not later than 270 days after the date of the enactment of this section, the Director of the Office of Management and Budget shall revise such regulations as necessary to incorporate the requirements of this section.CommentsClose CommentsPermalink





(d) Definitions and Special Rules- For purposes of this section:CommentsClose CommentsPermalink





(1) PERSON-CommentsClose CommentsPermalink





(A) IN GENERAL- The term `person' includes--CommentsClose CommentsPermalink





(i) an individual;CommentsClose CommentsPermalink





(ii) a partnership; andCommentsClose CommentsPermalink





(iii) a corporation.CommentsClose CommentsPermalink





(B) TREATMENT OF CERTAIN PARTNERSHIPS- A partnership shall be treated as a person with a seriously delinquent tax debt if such partnership has a partner who--CommentsClose CommentsPermalink





(i) holds an ownership interest of 50 percent or more in that partnership; andCommentsClose CommentsPermalink





(ii) who has a seriously delinquent tax debt.CommentsClose CommentsPermalink





(C) TREATMENT OF CERTAIN CORPORATIONS- A corporation shall be treated as a person with a seriously delinquent tax debt if such corporation has an officer or a shareholder who--CommentsClose CommentsPermalink





(i) holds 50 percent or more, or a controlling interest that is less than 50 percent, of the outstanding shares of corporate stock in that corporation; andCommentsClose CommentsPermalink





(ii) who has a seriously delinquent tax debt.CommentsClose CommentsPermalink





(2) EXECUTIVE AGENCY- The term `executive agency' has the meaning given such term in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).CommentsClose CommentsPermalink





(3) SERIOUSLY DELINQUENT TAX DEBT-CommentsClose CommentsPermalink





(A) IN GENERAL- The term `seriously delinquent tax debt' means an outstanding debt under the Internal Revenue Code of 1986 for which a notice of lien has been filed in public records pursuant to section 6323 of such Code.CommentsClose CommentsPermalink





(B) EXCEPTIONS- Such term does not include--CommentsClose CommentsPermalink





(i) a debt that is being paid in a timely manner pursuant to an agreement under section 6159 or section 7122 of such Code; andCommentsClose CommentsPermalink





(ii) a debt with respect to which a collection due process hearing under section 6330 of such Code, or relief under subsection (a), (b), or (f) of section 6015, is requested or pending.CommentsClose CommentsPermalink