HR 4881
110th CONGRESS
1st Session
H. R. 4881
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.
IN THE HOUSE OF REPRESENTATIVES
December 19, 2007
Mr. ELLSWORTH (for himself and Mr. TOWNS) introduced the following bill;
which was referred to the Committee on Oversight and Government Reform
A BILL
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.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Contracting and Tax Accountability Act of
2007'.
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.
SEC. 3. PROHIBITION ON AWARDING OF CONTRACTS TO DELINQUENT FEDERAL DEBTORS.
Section 3720B of title 31, United States Code, is amended--
(1) in the section heading, by adding at the end `or contracts';
(2) by adding at the end the following:
`(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.
`(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--
`(A) certifying that the person does not have a seriously delinquent
tax debt; and
`(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.
`(3) The Secretary shall make available to all Federal agencies a standard
form for the certification and authorization described in paragraph (2).
`(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.
`(5) For purposes of this subsection:
`(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--
`(i) a contract designated by the head of the agency as assisting
the agency in the performance of disaster relief authorities; or
`(ii) a contract designated by the head of the agency as necessary
to the national security of the United States.
`(B)(i) The term `person' includes--
`(ii) A partnership shall be treated as a person with a seriously delinquent
tax debt if such partnership has a partner who--
`(I) holds an ownership interest of 50 percent or more in that partnership;
and
`(II) who has a seriously delinquent tax debt.
`(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--
`(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; and
`(II) who has a seriously delinquent tax debt.
`(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.
`(ii) Such term does not include--
`(I) a debt that is being paid in a timely manner pursuant to an agreement
under section 6159 or section 7122 of such Code; and
`(II) a debt with respect to which a collection due process hearing
under section 6330 of such Code, or relief under subsections (a),
(b), or (f) of section 6015 of such Code, is requested or pending.'.
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--
(1) certifying that the person does not have a seriously delinquent
tax debt; and
(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.
(b) Release of Information- The Secretary shall make available to all
Executive agencies a standard form for the certification and authorization
described in subsection (a)(2).
(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.
(d) Definitions and Special Rules- For purposes of this section:
(A) IN GENERAL- The term `person' includes--
(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--
(i) holds an ownership interest of 50 percent or more in that partnership;
and
(ii) who has a seriously delinquent tax debt.
(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--
(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; and
(ii) who has a seriously delinquent tax debt.
(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).
(3) SERIOUSLY DELINQUENT TAX DEBT-
(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.
(B) EXCEPTIONS- Such term does not include--
(i) a debt that is being paid in a timely manner pursuant to an
agreement under section 6159 or section 7122 of such Code; and
(ii) a debt with respect to which a collection due process hearing
under section 6330 of such Code, or relief under subsections (a),
(b), or (f) of section 6015 of such Code, is requested or pending.
END
