S 2519
110th CONGRESS
1st Session
S. 2519
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 SENATE OF THE UNITED STATES
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
Affairs
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 develop and 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 subsection (a),
(b), or (f) of section 6015, 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 develop and 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 subsection (a),
(b), or (f) of section 6015, is requested or pending.
END
