Summary: The Responsible Use of Public Health Dollars Act requires that, in order to receive grants from the state, a [Insert what the state calls a Crisis Pregnancy Center] must file all reports and documentation due for prior grants [and/or] cannot excessively mark up the prices for products provided to clients.
[BILL DRAFTING NOTE: This might be a bill or a budget amendment. Sections 3(A) and 3(B) might be offered together or separately, depending on the reporting and accounting problems in your state.]
SECTION 1. SHORT TITLE
This Act shall be called the “Responsible Use of Public Health Dollars Act.”
SECTION 2. FINDINGS
1. Over the past XXX years, the State of [State] has granted more than [$ AMOUNT] to [insert what the state calls UPCs], including [$ AMOUNT] over the past three years.
2. As part of the grant process, a [insert what the state calls UPCs] agrees to submit reports and evaluations [within 60 days after the grant period ends]. Such a requirement is also almost universally mandated for state grants relating to education, health care and social services.
3. Nevertheless, some grantees are failing to meet these reporting requirements. [Give examples if you can. Unfortunately, it seems common for UPCs to fail to report or provide inadequate reports.]
4. As part of the grant process, [insert what the state calls UPCs] list prices that they are charging the state for products such as pregnancy tests, ultrasounds, STD/STI tests, diapers, packs of baby wipes, baby clothing outfits, car seats, strollers, cribs, and containers of baby formula.
5. However, some UPCs excessively mark-up these prices, a kind of handling charge, when billing the state. These mark-ups may exceed 50 or 100 percent of the actual price of the product. It is an unreasonable use of state funds to pay for excessive mark ups.
6. Tax dollars should not be wasted or misallocated. The legislature and the state administration have an obligation to ensure that funds granted to any nonprofit are spent efficiently and effectively.
SECTION 3. REPORTING AND ACCOUNTING REQUIRED
After section XXX, the following new section XXX shall be inserted:
(A) PROPER REPORTING
1. A [insert what the state calls UPCs] shall not qualify for a state grant under any program if the grant applicant has failed to file any report or meet any statutory, regulatory or contract requirement of a prior state grant.
2. Any funds due or owed to a [insert what the state calls a UPC] that has failed to file a required report will be held and not released until all required reports are received and reviewed.
3. Any [insert what the state calls a UPC] that fails to comply with reporting requirements will be prohibited from applying for any further funding for a six-month period beginning the day after any report was overdue.
(B) PROPER ACCOUNTING
1. A [insert what the state calls CPCs] shall not qualify for a state grant under any program if the facility lists a price for a product provided to clients that exceeds [ten percent] more than the actual price the facility paid for that product.
2. Any [insert what the state calls a UPC] that fails to comply with the accounting requirement in this subsection shall be prohibited from applying for any further funding for a six-month period beginning the day after any report where the state is charged in excess of [ten percent] more than the actual price the facility paid.
SECTION 4. EFFECTIVE DATE
This law shall become effective on July 1, 20XX.