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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | February 23, 2023 03:27 PM |
|---|---|
| From: | Representative Malcolm Kenyatta and Rep. Maureen E. Madden, Rep. Jennifer O'Mara |
| To: | All House members |
| Subject: | The Clawback Act |
| Our commonwealth’s grant and loan programs are critical tools designed to support the needs of our constituents and organizations that serve them. While helping Pennsylvanians, we have an obligation to address potential misuse of state grants or loans. We are proposing legislation that will act as the framework to address this problem and protect taxpayer dollars. Our legislation, the Clawback Act, would require all new state grant and loan programs to include language to address the misuse of monies should entities not meet program guidelines and metrics. Language is patterned after that already found in the Tax Code for tax credit programs. This proposal establishes a bar by which all state grant and loan recipients must adhere, which in turn assures that taxpayer dollars are accomplishing the goals established in any grant or loan program. Additionally, the legislation will mandate that misused monies, accumulated interest on the grant or loan and income accumulations be repaid to the Commonwealth in a timely manner. To be clear, many state grant and loan programs already include clawback language and this will not impact already established programs. Also, this legislation will not prohibit the establishment of more stringent clawback provisions. This legislation not only seeks to protect taxpayer dollars, but also to ensure that the program metrics and outcomes are met. We hope that you will support this legislation to safeguard taxpayer dollars by co-sponsoring The Clawback Act. |
Introduced as HB842