Title: Contracting and Tax Accountability Act of 2019
Policy area: Government Operations and Politics

Summary:
Contracting and Tax Accountability Act of 2019
This bill prohibits an executive agency from awarding 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 debt. Simplified acquisition threshold means the dollar amount below which a nonfederal entity may purchase property or services using small purchase methods.
The bill (1) authorizes the Department of the Treasury to disclose to an agency whether such person has a seriously delinquent tax debt, and (2) subjects a person with such debt to suspension or debarment from the federal procurement process.
The bill defines seriously delinquent tax debt as a federal tax liability that has been assessed by the Internal Revenue Service and is collectible by levy or a court proceeding, with exceptions for a tax debt (1) that is being paid in a timely manner under an approved installment agreement or an offer-in-compromise, (2) for which a collection due process hearing has been requested or is pending, (3) for which a continuous levy has been issued or agreed to by an applicant for employment, or (4) with respect to which such a levy is released because it has been determined to be an economic hardship to the taxpayer.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1385 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                S. 1385

   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

                              May 9, 2019

  Mr. Kennedy 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 2019''.

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. DISCLOSURE AND EVALUATION OF CONTRACT OFFERS FROM DELINQUENT 
              FEDERAL DEBTORS.

    (a) In General.--The head of any executive agency that issues an 
invitation for bids or a request for proposals for a contract in an 
amount greater than the simplified acquisition threshold shall require 
each person that submits a bid or proposal to submit with the bid or 
proposal 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 agency information limited to describing 
        whether the person has a seriously delinquent tax debt.
    (b) Impact on Responsibility Determination.--The head of any 
executive agency, in evaluating any offer received in response to a 
solicitation issued by the agency for bids or proposals for a contract, 
shall consider a certification that the offeror has a seriously 
delinquent tax debt to be definitive proof that the offeror is not a 
responsible source as defined in section 113 of title 41, United States 
Code.
    (c) Debarment.--
            (1) Requirement.--Except as provided in paragraph (2), the 
        head of an executive agency shall initiate a suspension or 
        debarment proceeding against a person after receiving an offer 
        for a contract from such person if--
                    (A) such offer contains a certification (as 
                required under subsection (a)(1)) that such person has 
                a seriously delinquent tax debt; or
                    (B) the head of the agency receives information 
                from the Secretary of the Treasury (as authorized under 
                subsection (a)(2)) demonstrating that such a 
                certification submitted by such person is false.
            (2) Waiver.--The head of an executive agency may waive 
        paragraph (1) with respect to a person based upon a written 
        finding of urgent and compelling circumstances significantly 
        affecting the interests of the United States. If the head of an 
        executive agency waives paragraph (1) for a person, the head of 
        the agency shall submit to Congress, within 30 days after the 
        waiver is made, a report containing the rationale for the 
        waiver and relevant information supporting the waiver decision.
    (d) Release of Information.--The Secretary of the Treasury, in 
consultation with the Director of the Office of Management and Budget, 
shall make available to all executive agencies a standard form for the 
authorization described in subsection (a).
    (e) Revision of Regulations.--Not later than 270 days after the 
date of enactment of this subsection, the Federal Acquisition 
Regulation shall be revised to incorporate the requirements of this 
section.

SEC. 4. DISCLOSURE AND EVALUATION OF GRANT APPLICATIONS FROM 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 shall require each person applying for a grant to submit with 
the grant application 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) Impact on Determination of Financial Stability.--The head of 
any executive agency, in evaluating any application for a grant offered 
by the agency, shall consider a certification that the grant applicant 
has a seriously delinquent tax debt to be definitive proof that the 
applicant is high-risk and, if the applicant is awarded the grant, 
shall take appropriate measures under guidelines issued by the Office 
of Management and Budget for enhanced oversight of high-risk grantees.
    (c) Debarment.--
            (1) Requirement.--Except as provided in paragraph (2), the 
        head of an executive agency shall initiate a suspension or 
        debarment proceeding against a person after receiving a grant 
        application from such person if--
                    (A) such application contains a certification (as 
                required under subsection (a)(1)) that such person has 
                a seriously delinquent tax debt; or
                    (B) the head of the agency receives information 
                from the Secretary of the Treasury (as authorized under 
                subsection (a)(2)) demonstrating that such a 
                certification submitted by such person is false.
            (2) Waiver.--The head of an executive agency may waive 
        paragraph (1) with respect to a person based upon a written 
        finding of urgent and compelling circumstances significantly 
        affecting the interests of the United States. If the head of an 
        executive agency waives paragraph (1) for a person, the head of 
        the agency shall submit to Congress, within 30 days after the 
        waiver is made, a report containing the rationale for the 
        waiver and relevant information supporting the waiver decision.
    (d) Release of Information.--The Secretary of the Treasury, in 
consultation with the Director of the Office of Management and Budget, 
shall make available to all executive agencies a standard form for the 
authorization described in subsection (a).
    (e) 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.

SEC. 5. DEFINITIONS AND SPECIAL RULES.

    For purposes of this Act:
            (1) Person.--
                    (A) In general.--The term ``person'' includes--
                            (i) an individual;
                            (ii) a partnership; and
                            (iii) a corporation.
                    (B) Exclusion.--The term ``person'' does not 
                include an individual seeking assistance through a 
                grant entitlement program.
                    (C) 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) has a seriously delinquent tax debt.
                    (D) 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) has a seriously delinquent tax debt.
            (2) Executive agency.--The term ``executive agency'' has 
        the meaning given such term in section 133 of title 41, United 
        States Code.
            (3) Seriously delinquent tax debt.--
                    (A) In general.--The term ``seriously delinquent 
                tax debt'' means a Federal tax liability that--
                            (i) has been assessed by the Secretary of 
                        the Treasury under the Internal Revenue Code of 
                        1986; and
                            (ii) may be collected by the Secretary by 
                        levy or by a proceeding in court.
                    (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;
                            (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 of such Code, 
                        is requested or pending;
                            (iii) a debt with respect to which a 
                        continuous levy has been issued under section 
                        6331 of such Code (or, in the case of an 
                        applicant for employment, a debt with respect 
                        to which the applicant agrees to be subject to 
                        such a levy); and
                            (iv) a debt with respect to which such a 
                        levy is released under section 6343(a)(1)(D) of 
                        such Code.

SEC. 6. EFFECTIVE DATE.

    This Act shall apply with respect to contracts and grants awarded 
on or after the date occurring 270 days after the date of the enactment 
of this Act.
                                 <all>