Connecticut House Bill HB05443

Connecticut 2023 Regular Session

• Introduced: 1/17/23
• Refer: 1/17/23

Caption

An Act Prohibiting State Clawback Of Savings Retained By Nonprofit Providers Of Human Services.

Impact

The enactment of HB 5443 would have significant implications for the operational frameworks of nonprofit organizations within the human services sector. By safeguarding the retained savings, the bill empowers nonprofits to reinvest these funds into their service delivery, enhancing their capacity to respond to community needs without the fear of financial clawbacks from the state. This could result in improved service quality and expanded program offerings, as nonprofits would have greater financial stability and flexibility.

Summary

House Bill 5443 is a legislative proposal that seeks to amend the state's statutes concerning the retention of savings by nonprofit providers of human services. Specifically, the bill aims to prohibit the state from recovering any savings that these nonprofit entities retain, provided they meet the contractual requirements established by the state. The intention behind this initiative is to ensure that nonprofits can retain excess funds which may arise from efficient management or cost-saving measures in delivering state-mandated services.

Contention

Despite the potential benefits, the bill may attract scrutiny and contention from various stakeholders. Critics could argue that the state should have the authority to reclaim unspent funds if they are not utilized for intended purposes. Additionally, there might be concerns about accountability and transparency in how nonprofits manage their funds. The debate is likely to revolve around ensuring that while nonprofits are supported, there remains a framework for accountability to taxpayers and state agencies involved in funding these services.