[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1870 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1870

 To amend title 31, United States Code, to prohibit delinquent Federal 
 debtors from being eligible to enter into Federal contracts, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 17, 2007

   Mr. Towns (for himself, Mr. Waxman, Mrs. Maloney of New York, Mr. 
Kucinich, and Mr. Murphy of Connecticut) introduced the following bill; 
which was referred to the Committee on Oversight and Government Reform, 
and in addition to the Committee on Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
 To amend title 31, United States Code, to prohibit delinquent Federal 
 debtors from being eligible to enter into Federal contracts, 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 ``Contractor Tax Enforcement Act''.

SEC. 2. AMENDMENTS TO PROVISION REGARDING 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) in subsection (a)--
                    (A) by inserting ``or be eligible to enter into a 
                Federal contract with the agency'' after ``administered 
                by the agency'';
                    (B) by inserting ``, including'' after ``debt'' the 
                first place such term appears;
                    (C) by striking ``(other than'' the second place 
                such words appear;
                    (D) by striking the closing parenthesis after 
                ``1986''; and
                    (E) by inserting ``and be eligible to enter into 
                Federal contracts'' after ``loan guarantees''; and
            (3) by adding at the end the following:
    ``(c)(1) The head of any Federal agency that administers a Federal 
loan or loan guarantee program or that issues a request for proposals 
for a Federal contract shall require each applicant for a Federal loan 
or loan guarantee and each entity that submits a proposal to enter into 
a contract with the agency to submit with the loan or loan guarantee 
application or the contract proposal a form authorizing the Secretary 
of the Treasury to disclose to the head of the agency information 
limited to describing whether the applicant or prospective contractor 
has an outstanding debt under the Internal Revenue Code of 1986 in 
delinquent status (as defined in this section).
    ``(2) Not later than 30 days after the date of the enactment of 
this subsection, the Secretary shall develop and make available to all 
Federal agencies a standard form, the purpose which shall be to 
authorize the disclosure described in paragraph (1).
    ``(d) For purposes of this section:
            ``(1) The term `contract' means a binding agreement entered 
        into by a Federal agency for the purpose of obtaining supplies, 
        materials, equipment, or services, but does not include--
                    ``(A) a contract to assist the agency in the 
                performance of disaster relief authorities, as 
                designated in standards prescribed by the Secretary of 
                the Treasury; or
                    ``(B) a contract designated by the head of the 
                agency as necessary to the national security of the 
                United States.
            ``(2) The term `person' includes--
                    ``(A) any partnership with a partner who has been 
                assessed a penalty under section 6672 of the Internal 
                Revenue Code of 1986 with respect to a debt which is in 
                delinquent status as described in paragraph (3); and
                    ``(B) any corporation with an officer or a 
                shareholder who holds 25 percent or more of the 
                outstanding shares of corporate stock in that 
                corporation who has been assessed a penalty under 
                section 6672 of the Internal Revenue Code of 1986 with 
                respect to a debt that is in delinquent status as 
                described in paragraph (3).
            ``(3) A debt under the Internal Revenue Code of 1986 shall 
        be considered to be in delinquent status if it has not been 
        paid within 180 days of an assessment of a tax, penalty, or 
        interest under the Internal Revenue Code of 1986. Such a debt 
        does not include a debt that is being paid in a timely manner 
        pursuant to an agreement under section 6159 or section 7122 of 
        the Internal Revenue Code of 1986.''.
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