House Approves Gaydos Legislation to Prevent Improper Payments Within State Programs
HARRISBURG – The House of Representatives overwhelmingly passed legislation today sponsored by Rep. Valerie Gaydos (R-Allegheny) that would impart greater accountability in government by requiring state agencies to review all of their programs and expenditures to assess their susceptibility to improper payment which is defined as an overpayment, an underpayment, a payment for an ineligible service or a payment to someone who was ineligible to receive it.

House Bill 104 is all about using our tax dollars wisely,” said Gaydos. “It will incentivize our state agencies to more efficiently comply with Federal Law and to ensure that the state is not in violation of requirements which can result in our state owing the federal government money.”

This legislation would specifically require the inspector general to review at least one state agency per year starting in 2022. If the state agency has an improper payment rate which exceeds 3%, the agency must adopt a corrective action plan to reduce the improper payment rate to 3% or less. This requirement is necessary for the Commonwealth to comply with federal law.

Under the bill, if an agency has failed to reduce the improper payment rate five fiscal years after the inspector general’s review, the governor will move funds from the agency into budgetary reserve until the agency meets the efficiency standards put in place.

The bill now moves to the Senate for consideration.

Representative Valerie Gaydos
44th Legislative District
Pennsylvania House of Representatives

Media Contact: Rick Leiner
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