General Summary of the Bill

The proposed legislation, known as the "Put America on Commission Act of 2024," seeks to amend the Small Business Act by establishing the Office of Whistleblower Awards. This new office is designed to provide financial incentives to individuals who report financial misconduct, specifically related to COVID-19 loans. A central part of the bill is the creation of a Whistleblower Award Fund, which will be used to reward whistleblowers with a portion of the monies recovered from those found guilty of misconduct or fraud. The bill outlines detailed procedures for determining award eligibility and protects whistleblowers from retaliation.

Summary of Significant Issues

The bill introduces several areas of concern that could affect its implementation and efficacy:

• Determination of Whistleblower Contribution: The bill outlines a process for deciding which whistleblower contributed most substantially to an action, which could lead to disputes due to subjective judgments and potential biases.

• Management of the Whistleblower Award Fund: There is potential for misuse or insufficient oversight of the fund, especially since it includes provisions for covering operational expenses, which lack clear definition.

• Discretion in Award Reduction: The bill allows significant discretion to reduce awards for whistleblowers potentially involved in the misconduct, which may lead to inconsistency and unfairness without established criteria.

• Anti-Retaliation Provisions: Although the bill includes measures to protect whistleblowers, there is concern that these may not sufficiently guard against indirect forms of retaliation.

• Civil Monetary Penalties: The flat percentage for penalties may unevenly punish smaller versus larger offenses, potentially leading to disproportionate consequences.

• Ambiguity in Contractual Requirements: The bill mentions that whistleblowers need not have a contract with the Administrator to receive an award, but this provision lacks clarity, which may create confusion.

Impact on the Public

Broadly, the bill could encourage more individuals to report misconduct by providing financial rewards, potentially deterring fraudulent activities related to COVID-19 relief funding. This focus on accountability and transparency can bolster public trust in government financial assistance programs. However, the complexity and potential ambiguities in the bill could confuse or discourage potential whistleblowers, undermining these goals.

Impact on Specific Stakeholders

Whistleblowers: Individuals who report wrongdoing could benefit substantially from financial rewards and anti-retaliation protections. Nevertheless, complexity and ambiguity in the bill might deter some from coming forward, especially if they fear involvement in protracted legal or administrative disputes over award determinations.

Government Agencies: The Small Business Administration and its Inspector General could face increased responsibilities and possible resource strain due to managing and overseeing the new whistleblower office and fund. Additionally, they must ensure stringent oversight to prevent fund misuse.

Businesses and Loan Recipients: Entities that have received COVID-19 loans could be subject to increased scrutiny, which might lead to financial penalties if found guilty of misconduct. Although high penalties aim to deter fraud, the flat rate could impose heavy burdens on smaller businesses guilty of minor infractions.

Legal and Regulatory Bodies: Courts and other legal entities may encounter numerous appeals and legal challenges due to the subjective nature of several provisions, such as the substantial contribution determination and appeals process, which could result in increased administrative workload.

Overall, while the bill aims to foster integrity and transparency in the use of COVID-19 financial assistance, addressing these highlighted concerns is crucial to ensure fair and effective implementation.