If enacted, this legislation would significantly alter the landscape for monitoring financial practices relating to federal loans provided during the COVID-19 pandemic. It introduces mechanisms to ensure that vital information about the use of PPP funds is accessible to relevant government agencies, including the Internal Revenue Service and the Department of Justice. This increased scrutiny aims to enable more effective regulation and oversight, potentially reducing fraud and ensuring accountability among recipients of PPP funds.
Summary
House Bill 1476, titled the 'PPP Shell Company Discovery Act,' proposes to enhance the collection and sharing of information for conducting criminal investigations related to loans issued under the Paycheck Protection Program (PPP). The bill mandates the Secretary of the Treasury to compile a comprehensive list of loan recipients, which will include essential details such as names, mailing addresses, taxpayer identification numbers, and the aggregate amounts of PPP loans received. The goal is to improve transparency in the disbursement of funds and to combat potential fraud in the program.
Contention
The bill may face opposition regarding concerns over privacy and the handling of personal taxpayer information. While proponents argue that the legislation will foster accountability and deter fraudulent behavior, critics may raise issues about the implications for personal privacy and the potential for misuse of the data collected. This tension between enhancing investigative powers and protecting individual rights could become a central point of contention during legislative discussions.
PPP Shell Company Discovery ActThis bill requires the Internal Revenue Service (IRS) to compile a list of Paycheck Protection Program (PPP) loan recipients whose loans were forgiven under the program.Additionally, the IRS must compile (1) a list of such loan recipients who did not withhold payroll taxes in 2019, and (2) a list of loan such recipients for which the aggregate amount of PPP loans exceeded four times the greatest amount of wages paid by the recipient during a calendar month in 2019.The IRS must notify the Department of Justice when the lists are complete.
Securing American Families and Enterprises from People's Republic of China Investments Act or the SAFE from PRC Investments Act This bill requires certain issuers of securities and funds traded on an exchange to report on connections to China or the Communist Party of China. In particular, an issuer with specified connections to China must annually disclose a variety of details, including whether executive-level employees, senior directors, or board members are members of the Communist Party of China; interactions with the party; expenditures in China; expenditures in the United States regarding operations and lobbying activities; and the ability of the Public Company Accounting Oversight Board to audit the issuer. Additionally, an exchange-traded fund that invests in a Chinese company must annually disclose about that company ownership information, party involvement, whether the company participates in specified Chinese policies or activities, any ties to U.S.-sanctioned individuals, and the types of products or services produced by the company.