Section 9704.1 - [Effective 1/27/2025] Settlement conference process.(a)Settlement officer.--The board shall appoint one or more individuals to serve as a settlement officer for a settlement conference initiated under subsection (b), and the following shall apply:(1) A settlement officer must be a third-party contractor retained by the board.(2) A settlement officer: (i) Must be a citizen of the United States;(ii) Must be an attorney in good standing before the Supreme Court of Pennsylvania or a certified public accountant in good standing before the State Board of Accountancy;(iii) Must have significant experience in a position requiring substantial knowledge of Pennsylvania tax law; and(iv) May not be employed by the department, board or the State Treasurer, other than in the capacity as a settlement officer.(3) A settlement officer: (i) Shall be fair and impartial and is not permitted to preside over a settlement conference if the settlement officer cannot conduct it in an impartial manner; and(ii) Shall disclose, as soon as practicable, all actual and potential conflicts of interest that are reasonably known to the settlement officer and could reasonably be seen as raising a question about the officer's interest in the outcome unless the petitioner and the department consent in writing.(4) The board may remove a settlement officer at its sole discretion.(5) The State Treasurer shall set the compensation for a settlement officer.(b) Request for settlement conference.--Notwithstanding section 2704(f)(1), either party may submit a request for or the board may direct, a settlement conference to settle a petition for review of a decision and order under the board's jurisdiction. The request for a settlement conference shall be submitted to the board, unless the settlement conference is directed by the board, by filing a written request with the petition or within 30 days of the petition being filed. The board may allow settlement conferences after the deadline in the exercise of discretion or upon application for good cause. The following shall apply: (1) The board may defer consideration of the petition until after the parties terminate a settlement conference or the settlement conference is deemed terminated under subsection (e). If the board defers consideration of the petition, the board shall issue a decision and order disposing of the petition within six months of the party's refusal to participate in a settlement conference or termination.(2) The party requesting a settlement conference shall simultaneously notify the other party or parties and the board of the request, unless the board initiated the settlement conference.(3) A request for settlement must provide a brief description of the dispute and the relief requested. The nonrequesting party or parties must file a written response with the board and provide a copy to the requesting party in support of or opposition to the settlement conference within 10 business days of the requester's submission.(4) The board, within five business days of receipt of the response in support of or opposition to the settlement conference, shall notify the parties in writing whether the board will refer an appeal to a settlement conference.(5) A petitioner may decline to participate in a settlement conference upon providing the board with written notice of its intent not to participate within five business days of receipt of notice of the referral.(c) Settlement conference.--The following shall apply to a settlement conference requested under subsection (b): (1) A settlement conference shall be held no later than 60 days from the date the board refers a case for settlement conference.(2) The settlement officer shall set the date, time and place for each conference. The parties shall respond to requests for conference dates in a timely manner, be cooperative in scheduling the earliest practicable date and adhere to the established conference schedule. The settlement officer, in the exercise of discretion or upon application for good cause, may reschedule a conference. The settlement officer shall provide notice of the conference to the parties in advance of the conference date.(3) A settlement conference and related settlement conference communications are private proceedings. A representative of each party must attend each settlement conference. A party is not required to attend each settlement conference unless the party does not have representation. Other individuals may attend a settlement conference only with the permission of the parties and with the consent of the settlement officer.(4) A settlement conference may be conducted virtually or in person.(5) A settlement conference may not be recorded electronically or in any other manner, regardless of the consent of the parties.(6) The following shall apply to representation at a settlement conference:(i) A party is not required to retain representation for a settlement conference.(ii) If a party retains representation, the party may be represented at a settlement conference by any individual of the party's choosing. (7) The settlement officer shall conduct the settlement conference in an informal manner with the purpose of facilitating a settlement between the petitioner and the department. The settlement officer is authorized to conduct separate or ex parte meetings and other communications with the parties, and any representatives of the parties, before, during and after any scheduled settlement conference.(8) Prior to and during the scheduled settlement conference, the parties and their representatives shall, as appropriate to each party's circumstances, exercise best efforts to prepare for and engage in a meaningful and productive settlement conference.(9) The parties are encouraged to exchange all documents pertinent to the relief requested. The settlement officer may request the exchange of memoranda on issues, including the underlying interests and the history of the parties' negotiations. Information that a party wishes to keep confidential may be sent to the settlement officer, as necessary, in a separate communication with the settlement officer.(10) Confidential information disclosed to a settlement officer by a party in the course of a settlement conference shall not be divulged by the settlement officer. The settlement officer shall maintain the confidentiality of all information obtained in the settlement conference, and all records, reports or other documents received by the settlement officer while serving in that capacity shall be confidential. The settlement officer shall be subject to the provisions and penalties of section 731 of the act of April 9, 1929 (P.L.343, No.176), known as the Fiscal Code.(11) The settlement officer must return to each respective party all documents containing confidential information presented at the settlement conference within 30 days after the earlier of the date that the board accepts a settlement or the board mails its order deciding the case.(12) A party must submit to the board any documents intended to be used in support of the party's appeal. The documents must be submitted in accordance with the rules and procedures of the board for submitting additional evidence.(13) The settlement officer shall not be compelled to divulge confidential records or to testify in regard to the settlement conference in any administrative, judicial or other proceeding.(14) No confidential or privileged document or other record presented or included in a settlement conference shall be subject to access under the act of February 14, 2008 (P.L.6, No. 3), known as the Right-To-Know Law.(15) Each party to a settlement conference shall maintain the confidentiality of the settlement conference and shall not rely on or introduce as evidence in any administrative, judicial or other proceeding the following, unless agreed to by the parties or required by applicable law: (i) Views expressed or suggestions made by a party or other participant with respect to a possible settlement of the dispute.(ii) Admissions made by a party or other participant in the course of the settlement conference.(iii) Proposals made or views expressed by the settlement officer.(iv) The fact that a party had or had not indicated willingness to accept a proposal for settlement made by the settlement officer.(16) A settlement officer is not a legal representative of any party and has no fiduciary duty to any party.(d) Postsettlement conference procedures.--(1) The settlement officer shall evaluate the merits of a dispute during the settlement conference. The evaluations shall be communicated to each party privately or, if the parties agree, to all parties jointly. Unless parties agree otherwise, evaluations shall be communicated orally.(2) The settlement officer does not have the authority to impose a settlement on the parties. Subject to the discretion of the settlement officer, the officer may make oral or written recommendations for settlement to a party privately or, if the parties agree, to all parties jointly.(3) In the event a settlement of all or some of the issues in dispute is not achieved within the scheduled settlement conference, the settlement officer may continue to communicate with the parties for a period of time not to exceed 30 days from the date of the settlement conference, during which time the parties agree to negotiate in earnest in an ongoing effort to facilitate a complete settlement.(4) If the parties to a settlement conference come to an agreement, the parties shall present the terms of the settlement to the board for approval in writing signed by all parties within 10 business days after reaching the settlement. The settlement agreement shall be approved by the board if the board determines the agreement is not contrary to law.(5) If the parties to a settlement conference cannot reach a settlement of any or all of the issues, the board shall proceed in accordance with the procedure specified in this act and regulations.(6) A settlement agreement shall not be considered as precedent and cannot be appealed.(e)Termination of a settlement conference.--The settlement conference shall be terminated: (1) By the board approving a settlement agreement by the parties;(2) By a written declaration by the settlement officer that further efforts at a settlement conference would not contribute to a resolution of the parties' dispute;(3) By a written declaration of all parties that the settlement conference is terminated; or(4) When the settlement officer has represented in writing to the board that there has been no communication between the settlement officer and any party or party's representative for 21 days following the conclusion of the settlement conference.(f)Exclusion of liability.--A settlement officer is not a necessary or proper party in administrative, judicial or other proceedings relating to the settlement conference. Notwithstanding any provision of law to the contrary, parties to a settlement conference under this section shall be deemed to have consented that the settlement officer shall not be liable to any party for any error, act or omission in connection with any settlement conference conducted under this section. Parties to a settlement conference under this section may not call a settlement officer as a witness in litigation or any other proceeding relating to the settlement conference. The settlement officer is not competent to testify as a witness in any proceeding related to the settlement conference.(g) Rules and regulations.--The board may adopt rules and promulgate regulations necessary to effectuate this section.(h) Laws not applicable.--The provisions of 2 Pa.C.S. (relating to administrative law and procedure) shall not apply to a settlement conference conducted under this section.Added by P.L. (number not assigned at time of publication) 2024 No. 123,§ 3, eff. 1/27/2025.