Amendments to SA 2499 on S. 178 — Congressional Record, Senate, August 4, 2020
Summary
Page S4737 of the Senate section of the Congressional Record for August 4, 2020. Amendments submitted by Rubio with Collins, by Scott of Florida with Ernst and McSally, and by Enzi are printed as intended to be proposed to amendment SA 2499 proposed by McConnell, each ordered to lie on the table. The text of one amendment adds a section on small business recovery with the short title "Continuing Small Business Recovery and Paycheck Protection Program Act" and definitions of terms including "covered supplier cost" and "covered worker protection expenditure".
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“Amendments to SA 2499 on S. 178 — Congressional Record, Senate, August 4, 2020.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crec-crec-2020-08-04-crec-2020-08-04-pt1-pgs4737-cf5f8b7d0f/
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4737
amendment SA 2499 proposed by Mr. MCCON- TEXT OF AMENDMENTS was not covered by insurance or other com-
NELL to the bill S. 178, supra; which was or- pensation;’’;
dered to lie on the table. SA 2505. Mr. RUBIO (for himself and (vii) by inserting after paragraph (6), as so
SA 2552. Mr. SCOTT, of Florida (for him- Ms. COLLINS) submitted an amendment redesignated, the following:
self, Ms. ERNST, and Ms. MCSALLY) sub- intended to be proposed to amendment ‘‘(5) the term ‘covered supplier cost’ means
mitted an amendment intended to be pro- SA 2499 proposed by Mr. MCCONNELL to an expenditure made by an entity to a sup-
posed to amendment SA 2499 proposed by Mr. the bill S. 178, to condemn gross human plier of goods pursuant to a contract in ef-
MCCONNELL to the bill S. 178, supra; which rights violations of ethnic Turkic Mus- fect before February 15, 2020 for the supply of
was ordered to lie on the table. goods that are essential to the operations of
lims in Xinjiang, and calling for an end
SA 2553. Mr. ENZI submitted an amend- the entity at the time at which the expendi-
to arbitrary detention, torture, and ture is made;’’;
ment intended to be proposed to amendment
SA 2499 proposed by Mr. MCCONNELL to the
harassment of these communities in- (viii) by inserting after paragraph (8), as so
bill S. 178, supra; which was ordered to lie on side and outside China; which was or- redesignated, the following:
the table. dered to lie on the table; as follows: ‘‘(9) the term ‘covered worker protection
SA 2554. Mr. ENZI submitted an amend- At the end of the amendment, add the fol- expenditure’—
ment intended to be proposed by him to the lowing: ‘‘(A) means an operating or a capital ex-
bill S. 178, supra; which was ordered to lie on SEC. 3. SMALL BUSINESS RECOVERY. penditure that is required to facilitate the
the table . adaptation of the business activities of an
(a) SHORT TITLE.—This section may be
SA 2555. Mr. ENZI submitted an amend- entity to comply with requirements estab-
cited as the ‘‘Continuing Small Business Re-
ment intended to be proposed to amendment lished or guidance issued by the Department
covery and Paycheck Protection Program
SA 2499 proposed by Mr. MCCONNELL to the of Health and Human Services, the Centers
Act’’.
bill S. 178, supra; which was ordered to lie on for Disease Control, or the Occupational
(b) DEFINITIONS.—In this section:
the table. Safety and Health Administration during the
(1) ADMINISTRATION; ADMINISTRATOR.—The
SA 2556. Mr. ENZI submitted an amend- period beginning on March 1, 2020 and ending
terms ‘‘Administration’’ and ‘‘Adminis- December 31, 2020 related to the maintenance
ment intended to be proposed by him to the trator’’ mean the Small Business Adminis-
bill S. 178, supra; which was ordered to lie on of standards for sanitation, social
tration and the Administrator thereof, re- distancing, or any other worker or customer
the table . spectively. safety requirement related to COVID–19;
SA 2557. Mr. ENZI submitted an amend- (2) SMALL BUSINESS CONCERN.—The term ‘‘(B) may include—
ment intended to be proposed to amendment ‘‘small business concern’’ has the meaning ‘‘(i) the purchase, maintenance, or renova-
SA 2499 proposed by Mr. MCCONNELL to the given the term in section 3 of the Small tion of assets that create or expand—
bill S. 178, supra; which was ordered to lie on Business Act (15 U.S.C. 632). ‘‘(I) a drive-through window facility;
the table. (c) EMERGENCY RULEMAKING AUTHORITY.— ‘‘(II) an indoor, outdoor, or combined air or
SA 2558. Mr. ENZI submitted an amend- Not later than 30 days after the date of en- air pressure ventilation or filtration system;
ment intended to be proposed by him to the actment of this Act, the Administrator shall ‘‘(III) a physical barrier such as a sneeze
bill S. 178, supra; which was ordered to lie on issue regulations to carry out this section guard;
the table . and the amendments made by this section ‘‘(IV) an indoor, outdoor, or combined com-
SA 2559. Mr. ROMNEY (for himself, Ms. without regard to the notice requirements mercial real property;
COLLINS, and Ms. MCSALLY) submitted an under section 553(b) of title 5, United States ‘‘(V) an onsite or offsite health screening
amendment intended to be proposed to Code. capability; or
amendment SA 2499 proposed by Mr. MCCON- (d) ADDITIONAL ELIGIBLE EXPENSES.— ‘‘(VI) other assets relating to the compli-
NELL to the bill S. 178, supra; which was or- (1) ALLOWABLE USE OF PPP LOAN.—Section ance with the requirements or guidance de-
dered to lie on the table. 7(a)(36)(F)(i) of the Small Business Act (15 scribed in subparagraph (A), as determined
SA 2560. Mr. COTTON submitted an amend- U.S.C. 636(a)(36)(F)(i)) is amended— by the Administrator in consultation with
ment intended to be proposed to amendment (A) in subclause (VI), by striking ‘‘and’’ at the Secretary of Health and Human Services
SA 2499 proposed by Mr. MCCONNELL to the the end; and the Secretary of Labor; and
bill S. 178, supra; which was ordered to lie on (B) in subclause (VII), by striking the pe- ‘‘(ii) the purchase of—
the table. riod at the end and inserting a semicolon; ‘‘(I) covered materials described in section
SA 2561. Mrs. CAPITO submitted an and 328.103(a) of title 44, Code of Federal Regula-
amendment intended to be proposed to (C) by adding at the end the following: tions, or any successor regulation;
amendment SA 2499 proposed by Mr. MCCON- ‘‘(VIII) covered operations expenditures, as ‘‘(II) particulate filtering facepiece res-
NELL to the bill S. 178, supra; which was or- defined in section 1106(a) of the CARES Act pirators approved by the National Institute
dered to lie on the table. (15 U.S.C. 9005(a)); for Occupational Safety and Health, includ-
SA 2562. Mrs. CAPITO submitted an ‘‘(IX) covered property damage costs, as ing those approved only for emergency use
amendment intended to be proposed to defined in such section 1106(a); authorization; or
amendment SA 2499 proposed by Mr. MCCON- ‘‘(X) covered supplier costs, as defined in ‘‘(III) other kinds of personal protective
NELL to the bill S. 178, supra; which was or- such section 1106(a); and equipment, as determined by the Adminis-
dered to lie on the table. ‘‘(XI) covered worker protection expendi- trator in consultation with the Secretary of
SA 2563. Mr. YOUNG submitted an amend- tures, as defined in such section 1106(a).’’. Health and Human Services and the Sec-
ment intended to be proposed to amendment (2) LOAN FORGIVENESS.—Section 1106 of the retary of Labor; and
SA 2499 proposed by Mr. MCCONNELL to the CARES Act (15 U.S.C. 9005) is amended— ‘‘(C) does not include residential real prop-
bill S. 178, supra; which was ordered to lie on (A) in subsection (a)— erty or intangible property;’’; and
the table. (i) by redesignating paragraphs (6), (7), and (ix) in paragraph (11), as so redesignated—
SA 2564. Mr. MORAN submitted an amend- (8) as paragraphs (10), (11), and (12), respec- (I) in subparagraph (C), by striking ‘‘and’’
ment intended to be proposed to amendment tively; at the end;
SA 2499 proposed by Mr. MCCONNELL to the (ii) by redesignating paragraph (5) as para- (II) in subparagraph (D), by striking ‘‘and’’
bill S. 178, supra; which was ordered to lie on graph (8); at the end; and
the table. (iii) by redesignating paragraph (4) as para- (III) by adding at the end the following:
SA 2565. Mr. CORNYN (for himself and Mr. graph (6); ‘‘(E) covered operations expenditures;
MCCONNELL) submitted an amendment in- (iv) by redesignating paragraph (3) as para- ‘‘(F) covered property damage costs;
tended to be proposed to amendment SA 2499 graph (4); ‘‘(G) covered supplier costs; and
proposed by Mr. MCCONNELL to the bill S. (v) by inserting after paragraph (2) the fol- ‘‘(H) covered worker protection expendi-
178, supra; which was ordered to lie on the lowing: tures; and’’;
table. ‘‘(3) the term ‘covered operations expendi- (B) in subsection (b), by adding at the end
SA 2566. Mrs. HYDE–SMITH submitted an ture’ means a payment for any business soft- the following:
amendment intended to be proposed to ware or cloud computing service that facili- ‘‘(5) Any covered operations expenditure.
amendment SA 2499 proposed by Mr. MCCON- tates business operations, product or service ‘‘(6) Any covered property damage cost.
NELL to the bill S. 178, supra; which was or- delivery, the processing, payment, or track- ‘‘(7) Any covered supplier cost.
dered to lie on the table. ing of payroll expenses, human resources, ‘‘(8) Any covered worker protection ex-
SA 2567. Mr. McCONNELL (for Mrs. CAPITO sales and billing functions, or accounting or penditure.’’;
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(for herself and Mr. PETERS)) proposed an tracking of supplies, inventory, records and (C) in subsection (d)(8), by inserting ‘‘any
amendment to the bill S. 384, to require the expenses;’’; payment on any covered operations expendi-
Secretary of Commerce, acting through the (vi) by inserting after paragraph (4), as so ture, any payment on any covered property
Director of the National Institute of Stand- redesignated, the following: damage cost, any payment on any covered
ards and Technology, to help facilitate the ‘‘(5) the term ‘covered property damage supplier cost, any payment on any covered
adoption of composite technology in infra- cost’ means a cost related to property dam- worker protection expenditure,’’ after ‘‘rent
structure in the United States, and for other age and vandalism or looting due to public obligation,’’; and
purposes. disturbances that occurred during 2020 that (D) in subsection (e)—
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S4738 CONGRESSIONAL RECORD — SENATE August 4, 2020
(i) in paragraph (2), by inserting ‘‘pay- ‘‘(B) DEMOGRAPHIC INFORMATION.—An eligi- ‘‘(i) the number of active reviews and au-
ments on covered operations expenditures, ble recipient of a covered loan described in dits;
payments on covered property damage costs, subparagraph (A) may complete and submit ‘‘(ii) the number of reviews and audits that
payments on covered supplier costs, pay- any form related to borrower demographic have been ongoing for more than 60 days; and
ments on covered worker protection expendi- information. ‘‘(iii) any substantial changes made to the
tures,’’ after ‘‘lease obligations,’’; and ‘‘(C) AUDIT.—The Administrator may— audit plan submitted under subparagraph
(ii) in paragraph (3)(B), by inserting ‘‘make ‘‘(i) review and audit covered loans de- (A).’’.
payments on covered operations expendi- scribed in subparagraph (A); and (h) GROUP INSURANCE PAYMENTS AS PAY-
tures, make payments on covered property ‘‘(ii) in the case of fraud, ineligibility, or ROLL COSTS.—Section
damage costs, make payments on covered other material noncompliance with applica- 7(a)(36)(A)(viii)(I)(aa)(EE) of the Small Busi-
supplier costs, make payments on covered ble loan or loan forgiveness requirements, ness Act (15 U.S.C.
worker protection expenditures,’’ after ‘‘rent modify— 636(a)(36)(A)(viii)(I)(aa)(EE)) is amended by
obligation,’’. ‘‘(I) the amount of a covered loan described inserting ‘‘and other group insurance’’ before
(e) LENDER SAFE HARBOR.—Subsection (h) in subparagraph (A); or ‘‘benefits’’.
of section 1106 of the CARES Act (15 U.S.C. ‘‘(II) the loan forgiveness amount with re- (i) PAYCHECK PROTECTION PROGRAM SECOND
9005) is amended to read as follows: spect to a covered loan described in subpara- DRAW LOANS.—Section 7(a) of the Small
‘‘(h) HOLD HARMLESS.— graph (A). Business Act (15 U.S.C. 636(a)) is amended by
‘‘(1) IN GENERAL.—A lender may rely on ‘‘(2) COVERED LOANS BETWEEN $150,000 AND adding at the end the following:
any certification or documentation sub- $2,000,000.— ‘‘(37) PAYCHECK PROTECTION PROGRAM SEC-
mitted by an applicant for a covered loan or ‘‘(A) IN GENERAL.—Notwithstanding sub- OND DRAW LOANS.—
an eligible recipient of a covered loan that— section (e), with respect to a covered loan ‘‘(A) DEFINITIONS.—In this paragraph—
‘‘(A) is submitted pursuant to any statu- made to an eligible recipient that is more ‘‘(i) the terms ‘community financial insti-
tory requirement relating to covered loans than $150,000 and not more than $2,000,000— tutions’, ‘credit union’, ‘eligible self-em-
or any rule or guidance issued to carry out ‘‘(i) the eligible recipient seeking loan for- ployed individual’, ‘insured depository insti-
any action relating to covered loans; and giveness under this section— tution’, ‘nonprofit organization’, ‘payroll
‘‘(B) attests that the applicant or eligible ‘‘(I) is not required to submit the sup- costs’, ‘seasonal employer’, and ‘veterans or-
recipient, as applicable, has accurately porting documentation described in para- ganization’ have the meanings given those
verified any certification or documentation graph (1) or (2) of subsection (e) or the cer- terms in paragraph (36), except that ‘eligible
provided to the lender. tification described in subsection (e)(3)(A); entity’ shall be substituted for ‘eligible re-
‘‘(2) NO ENFORCEMENT ACTION.—With re- ‘‘(II) shall retain all relevant schedules, cipient’ each place it appears in the defini-
spect to a lender that relies on a certifi- worksheets, and supporting documentation tions of those terms;
cation or documentation described in para- for the 3-year period following submission of ‘‘(ii) the term ‘covered loan’ means a loan
graph (1)— the application for loan forgiveness; and made under this paragraph;
‘‘(A) an enforcement action may not be ‘‘(III) may complete and submit any form ‘‘(iii) the terms ‘covered mortgage obliga-
taken against the lender acting in good faith related to borrower demographic informa- tion’, ‘covered operating expenditure’, ‘cov-
relating to origination or forgiveness of a tion; ered property damage cost’, ‘covered rent ob-
covered loan based on such reliance; and ‘‘(ii) review by the lender of an application ligation’, ‘covered supplier cost’, ‘covered
‘‘(B) the lender acting in good faith shall submitted by the eligible recipient for loan utility payment’, and ‘covered worker pro-
not be subject to any penalties relating to forgiveness under this section shall be lim- tection expenditure’ have the meanings
origination or forgiveness of a covered loan ited to whether the lender received a com- given those terms in section 1106(a) of the
based on such reliance.’’. plete application, with all fields completed, CARES Act (15 U.S.C. 9005(a));
(f) SELECTION OF COVERED PERIOD FOR FOR- initialed, or signed, as applicable; and ‘‘(iv) the term ‘covered period’ means the
GIVENESS.—Section 1106 of the CARES Act ‘‘(iii) the lender shall— period beginning on the date of the origina-
(15 U.S.C. 9005) is amended— ‘‘(I) accept the application submitted by tion of a covered loan and ending on Decem-
(1) by amending paragraph (4) of subsection the eligible recipient for loan forgiveness ber 31, 2020;
(a), as so redesignated by subsection (d) of under this section; and ‘‘(v) the term ‘eligible entity’—
this section, to read as follows: ‘‘(II) submit the application to the Admin- ‘‘(I) means any business concern, nonprofit
‘‘(4) the term ‘covered period’ means the istrator. organization, veterans organization, Tribal
period— ‘‘(B) AUDIT.—The Administrator may— business concern, eligible self-employed indi-
‘‘(A) beginning on the date of the origina- ‘‘(i) review and audit covered loans de- vidual, sole proprietor, independent con-
tion of a covered loan; and scribed in subparagraph (A); and tractor, or small agricultural cooperative
‘‘(B) ending on a date selected by the eligi- ‘‘(ii) in the case of fraud, ineligibility, or that—
ble recipient of the covered loan that occurs other material noncompliance with applica- ‘‘(aa)(AA) with respect to a business con-
during the period— ble loan or loan forgiveness requirements, cern, would qualify as a small business con-
‘‘(i) beginning on the date that is 8 weeks modify— cern by the annual receipts size standard (if
after such date of origination; and ‘‘(I) the amount of a covered loan described applicable) established by section 121.201 of
‘‘(ii) ending on December 31, 2020;’’; and in subparagraph (A); or title 13, Code of Federal Regulations, or any
(2) by striking subsection (l). ‘‘(II) the loan forgiveness amount with re- successor regulation; or
(g) SIMPLIFIED APPLICATION.—Section 1106 spect to a covered loan described in subpara- ‘‘(BB) if the entity does not qualify as a
of the CARES Act (15 U.S.C. 9005), as amend- graph (A). small business concern, meets the alter-
ed by subsection (f) of this section, is amend- ‘‘(3) AUDIT PLAN.— native size standard established under sec-
ed— ‘‘(A) IN GENERAL.—Not later than 30 days tion 3(a)(5);
(1) in subsection (e), in the matter pre- after the date of enactment of the Con- ‘‘(bb) employs not more than 300 employ-
ceding paragraph (1), by striking ‘‘An eligi- tinuing Small Business Recovery and Pay- ees; and
ble’’ and inserting ‘‘Except as provided in check Protection Program Act, the Adminis- ‘‘(cc)(AA) except as provided in subitems
subsection (l), an eligible’’; trator shall submit to the Committee on (BB), (CC), and (DD), had gross receipts dur-
(2) in subsection (f), by inserting ‘‘or the Small Business and Entrepreneurship of the ing the first or second quarter in 2020 that
information required under subsection (l), as Senate and the Committee on Small Busi- are not less than 35 percent less than the
applicable’’ after ‘‘subsection (e)’’; and ness of the House of Representatives an gross receipts of the entity during the same
(3) by adding at the end the following: audit plan that details— quarter in 2019;
‘‘(l) SIMPLIFIED APPLICATION.— ‘‘(i) the policies and procedures of the Ad- ‘‘(BB) if the entity was not in business dur-
‘‘(1) COVERED LOANS UNDER $150,000.— ministrator for conducting reviews and au- ing the first or second quarter of 2019, but
‘‘(A) IN GENERAL.—Notwithstanding sub- dits of covered loans; and was in business during the third and fourth
section (e), with respect to a covered loan ‘‘(ii) the metrics that the Administrator quarter of 2019, had gross receipts during the
made to an eligible recipient that is not shall use to determine which covered loans first or second quarter of 2020 that are less
more than $150,000, the covered loan amount will be audited for each category of covered than 35 percent of the amount of the gross
shall be forgiven under this section if the eli- loans described in paragraphs (1) and (2). receipts of the entity during the third or
gible recipient— ‘‘(B) REPORTS.—Not later than 30 days fourth quarter of 2019;
‘‘(i) signs and submits to the lender an at- after the date on which the Administrator ‘‘(CC) if the entity was not in business dur-
testation that the eligible recipient made a submits the audit plan required under sub- ing the first, second, or third quarter of 2019,
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good faith effort to comply with the require- paragraph (A), and each month thereafter, but was in business during the fourth quarter
ments under section 7(a)(36) of the Small the Administrator shall submit to the Com- of 2019, had gross receipts during the first or
Business Act (15 U.S.C. 636(a)(36)); and mittee on Small Business and Entrepreneur- second quarter of 2020 that are less than 35
‘‘(ii) for the 1-year period following sub- ship of the Senate and the Committee on percent of the amount of the gross receipts
mission of the attestation under clause (i), Small Business of the House of Representa- of the entity during the fourth quarter of
retains records relevant to the attestation tives a report on the review and audit activi- 2019; or
that prove compliance with those require- ties of the Administrator under this sub- ‘‘(DD) if the entity was not in business dur-
ments. section, which shall include— ing 2019, but was in operation on February
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4739
15, 2020, had gross receipts during the second political strategy or otherwise describes amount of loans guaranteed under this sub-
quarter of 2020 that are less than 35 percent itself as a think tank in any public docu- section that are approved for an eligible en-
of the amount of the gross receipts of the en- ments; or tity (including any affiliates) within 90 days
tity during the first quarter of 2020; ‘‘(dd) any business concern or entity— of approval of another loan under this sub-
‘‘(II) includes an organization described in ‘‘(AA) for which an entity created in or or- section for the eligible entity (including any
subparagraph (D)(vii) of paragraph (36) that ganized under the laws of the People’s Re- affiliates) shall not exceed $10,000,000.
is eligible to receive a loan under that para- public of China or the Special Administra- ‘‘(D) EXCEPTION FROM CERTAIN CERTIFI-
graph and that meets the requirements de- tive Region of Hong Kong, or that has sig- CATION REQUIREMENTS.—An eligible entity
scribed in items (aa) and (cc) of subclause (I); nificant operations in the People’s Republic applying for a covered loan shall not be re-
and of China or the Special Administrative Re- quired to make the certification described in
‘‘(III) does not include— gion of Hong Kong, owns or holds, directly or subclause (III) or (IV) of paragraph (36)(G)(i).
‘‘(aa) an issuer, the securities of which are indirectly, not less than 20 percent of the ‘‘(E) FEE WAIVER.—With respect to a cov-
listed on an exchange registered a national economic interest of the business concern or ered loan—
securities exchange under section 6 of the entity, including as equity shares or a cap- ‘‘(i) in lieu of the fee otherwise applicable
Securities Exchange Act of 1934 (15 U.S.C. ital or profit interest in a limited liability under paragraph (23)(A), the Administrator
78f); company or partnership; or shall collect no fee; and
‘‘(bb) any entity that— ‘‘(BB) that retains, as a member of the ‘‘(ii) in lieu of the fee otherwise applicable
‘‘(AA) is a type of business concern de- board of directors of the business concern, a under paragraph (18)(A), the Administrator
scribed in subsection (b), (c), (d), (e), (f), (h), person who is a resident of the People’s Re- shall collect no fee.
(l) (m), (p), (q), (r), or (s) of section 120.110 of public of China; ‘‘(F) ELIGIBLE CHURCHES AND RELIGIOUS OR-
title 13, Code of Federal Regulations, or any ‘‘(vi) the terms ‘exchange’, ‘issuer’, and ‘se- GANIZATIONS.—
successor regulation; curity’ have the meanings given those terms ‘‘(i) SENSE OF CONGRESS.—It is the sense of
‘‘(BB) is a type of business concern de- in section 3(a) of the Securities Exchange Congress that the interim final rule of the
scribed in section 120.110(g) of title 13, Code Act of 1934 (15 U.S.C. 78c(a)); and Administration entitled ‘Business Loan Pro-
of Federal Regulations, or any successor reg- ‘‘(vii) the term ‘Tribal business concern’ gram Temporary Changes; Paycheck Protec-
ulation, except as otherwise provided in the means a Tribal business concern described in tion Program’ (85 Fed. Reg. 20817 (April 15,
interim final rule of the Administration en- section 31(b)(2)(C). 2020)) properly clarified the eligibility of
titled ‘Business Loan Program Temporary ‘‘(B) LOANS.—Except as otherwise provided churches and religious organizations for
Changes; Paycheck Protection Program—Ad- in this paragraph, the Administrator may loans made under paragraph (36).
ditional Eligibility Criteria and Require- guarantee covered loans to eligible entities ‘‘(ii) APPLICABILITY OF PROHIBITION.—The
ments for Certain Pledges of Loans’ (85 Fed. under the same terms, conditions, and proc- prohibition on eligibility established by sec-
Reg. 21747 (April 20, 2020)); esses as a loan made under paragraph (36). tion 120.110(k) of title 13, Code of Federal
‘‘(CC) is a type of business concern de- ‘‘(C) MAXIMUM LOAN AMOUNT.— Regulations, or any successor regulation,
scribed in section 120.110(i) of title 13, Code of ‘‘(i) IN GENERAL.—Except as otherwise pro- shall not apply to a covered loan.
Federal Regulations, or any successor regu- vided in this subparagraph, the maximum ‘‘(G) GROSS RECEIPTS FOR NONPROFIT AND
lation, except if the business concern is an amount of a covered loan made to an eligible VETERANS ORGANIZATIONS.—For purposes of
organization described in paragraph entity is the lesser of— calculating gross receipts under subpara-
(36)(D)(vii); ‘‘(I) the product obtained by multiplying— graph (A)(v)(I)(cc) for an eligible entity that
‘‘(DD) is a type of business concern de- ‘‘(aa) at the election of the eligible entity, is a nonprofit organization, a veterans orga-
scribed in section 120.110(j) of title 13, Code of the average total monthly payment for pay- nization, or an organization described in sub-
Federal Regulations, or any successor regu- roll costs incurred or paid by the eligible en- paragraph (A)(v)(II), gross receipts—
lation, except as otherwise provided in the tity during— ‘‘(i) shall include proceeds from fund-
interim final rules of the Administration en- ‘‘(AA) the 1-year period before the date on raising events, federated campaigns, gifts,
titled ‘Business Loan Program Temporary which the loan is made; or donor-advised funds, and funds from similar
Changes; Paycheck Protection Program— ‘‘(BB) calendar year 2019; by sources; and
Eligibility of Certain Electric Cooperatives’ ‘‘(bb) 2.5; or ‘‘(ii) shall not include—
(85 Fed. Reg. 29847 (May 19, 2020)) and ‘Busi- ‘‘(II) $2,000,000. ‘‘(I) Federal grants (excluding any loan for-
ness Loan Program Temporary Changes; ‘‘(ii) SEASONAL EMPLOYERS.—The maximum giveness on loans received under paragraph
Paycheck Protection Program—Eligibility amount of a covered loan made to an eligible (36) or this paragraph);
of Certain Telephone Cooperatives’ (85 Fed. entity that is a seasonal employer is the ‘‘(II) revenues from a supporting organiza-
Reg. 35550 (June 11, 2020)) or any other guid- lesser of— tion;
ance or rule issued or that may be issued by ‘‘(I) the product obtained by multiplying— ‘‘(III) grants from private foundations that
the Administrator; ‘‘(aa) at the election of the eligible entity, are disbursed over the course of more than 1
‘‘(EE) is a type of business concern de- the average total monthly payments for pay- calendar year; or
scribed in section 120.110(n) of title 13, Code roll costs incurred or paid by the eligible en- ‘‘(IV) any contribution of property other
of Federal Regulations, or any successor reg- tity— than money, stocks, bonds, and other securi-
ulation, except as otherwise provided in the ‘‘(AA) for a 12-week period beginning Feb- ties, provided that the non-cash contribution
interim final rule of the Administration en- ruary 15, 2019 or March 1, 2019 and ending is not sold by the organization in a trans-
titled ‘Business Loan Program Temporary June 30, 2019; or action unrelated to the tax-exempt purpose
Changes; Paycheck Protection Program—Ad- ‘‘(BB) for a consecutive 12-week period be- of the organization.
ditional Eligibility Revisions to First In- tween May 1, 2019 and September 15, 2019; by ‘‘(H) LOAN FORGIVENESS.—
terim Final Rule’ (85 Fed. Reg. 38301 (June ‘‘(bb) 2.5; or ‘‘(i) IN GENERAL.—Except as otherwise pro-
26, 2020)) or any other guidance or rule issued ‘‘(II) $2,000,000. vided in this subparagraph, an eligible entity
or that may be issued by the Administrator; ‘‘(iii) NEW ENTITIES.—The maximum shall be eligible for forgiveness of indebted-
‘‘(FF) is a type of business concern de- amount of a covered loan made to an eligible ness on a covered loan in the same manner
scribed in section 120.110(o) of title 13, Code entity that did not exist during the 1-year as an eligible recipient with respect to a loan
of Federal Regulations, or any successor reg- period preceding February 15, 2020 is the less- made under paragraph (36), as described in
ulation, except as otherwise provided in any er of— section 1106 of the CARES Act (15 U.S.C.
guidance or rule issued or that may be issued ‘‘(I) the product obtained by multiplying— 9005).
by the Administrator; or ‘‘(aa) the quotient obtained by dividing— ‘‘(ii) FORGIVENESS AMOUNT.—An eligible en-
‘‘(GG) is an entity that is organized for re- ‘‘(AA) the sum of the total monthly pay- tity shall be eligible for forgiveness of in-
search or for engaging in advocacy in areas ments by the eligible entity for payroll costs debtedness on a covered loan in an amount
such as public policy or political strategy or paid or incurred by the eligible entity as of equal to the sum of the following costs in-
otherwise describes itself as a think tank in the date on which the eligible entity applies curred or expenditures made during the cov-
any public documents; for the covered loan; by ered period:
‘‘(HH) is an entity that would be described ‘‘(BB) the number of months in which ‘‘(I) Payroll costs.
in the subsections listed in subitems (AA) those payroll costs were paid or incurred; by ‘‘(II) Any payment of interest on any cov-
through (GG) if the entity were a business ‘‘(bb) 2.5; or ered mortgage obligation (which shall not in-
concern; or ‘‘(II) $2,000,000. clude any prepayment of or payment of prin-
‘‘(II) is assigned, or was approved for a loan ‘‘(iv) LIMIT FOR MULTIPLE LOCATIONS.—With cipal on a covered mortgage obligation).
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under paragraph (36) with, a North American respect to an eligible entity with more than ‘‘(III) Any covered operations expenditure.
Industry Classification System code begin- 1 physical location, the total amount of all ‘‘(IV) Any covered property damage cost.
ning with 52; covered loans shall be not more than ‘‘(V) Any payment on any covered rent ob-
‘‘(cc) any business concern or entity pri- $2,000,000. ligation.
marily engaged in political or lobbying ac- ‘‘(v) LOAN NUMBER LIMITATION.—An eligible ‘‘(VI) Any covered utility payment.
tivities, which shall include any entity that entity may only receive 1 covered loan. ‘‘(VII) Any covered supplier cost.
is organized for research or for engaging in ‘‘(vi) 90 DAY RULE FOR MAXIMUM LOAN ‘‘(VIII) Any covered worker protection ex-
advocacy in areas such as public policy or AMOUNT.—The maximum aggregate loan penditure.
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S4740 CONGRESSIONAL RECORD — SENATE August 4, 2020
‘‘(iii) LIMITATION ON FORGIVENESS FOR ALL (2) APPLICABILITY OF MAXIMUM LOAN culated using the formula described in sub-
ELIGIBLE ENTITIES.—The forgiveness amount AMOUNT CALCULATION.— paragraph (E), except that the gross income
under this subparagraph shall be equal to the (A) DEFINITIONS.—In this paragraph, the of the covered recipient described in clause
lesser of— terms ‘‘covered loan’’ and ‘‘eligible recipi- (ii)(I)(aa)(AA) of this subparagraph, as di-
‘‘(I) the amount described in clause (ii); ent’’ have the meanings given those terms in vided by 12, shall be added to the sum cal-
and section 7(a)(36) of the Small Business Act (15 culated under subparagraph (E)(i)(I).
‘‘(II) the amount equal to the quotient ob- U.S.C. 636(a)(36)). ‘‘(iv) RECALCULATION.—A lender that made
tained by dividing— (B) APPLICABILITY.—The amendment made a covered loan to a covered recipient before
‘‘(aa) the amount of the covered loan used by paragraph (1) shall apply only with re- the date of enactment of this subparagraph
for payroll costs during the covered period; spect to a covered loan applied for by an eli- may, at the request of the covered recipi-
and gible recipient on or after the date of enact- ent—
‘‘(bb) 0.60. ment of this Act. ‘‘(I) recalculate the maximum loan amount
‘‘(I) LENDER ELIGIBILITY.—Except as other- (k) INCREASED ABILITY FOR PAYCHECK PRO- applicable to that covered loan based on the
wise provided in this paragraph, a lender ap- TECTION PROGRAM BORROWERS TO REQUEST AN formula described in clause (ii) or (iii), as ap-
proved to make loans under paragraph (36) INCREASE IN LOAN AMOUNT DUE TO UPDATED plicable, if doing so would result in a larger
may make covered loans under the same REGULATIONS.— covered loan amount; and
terms and conditions as in paragraph (36). (1) DEFINITIONS.—In this subsection, the ‘‘(II) provide the covered recipient with ad-
‘‘(J) REIMBURSEMENT FOR LOAN PROCESSING terms ‘‘covered loan’’ and ‘‘eligible recipi- ditional covered loan amounts based on that
AND SERVICING.—The Administrator shall re- ent’’ have the meanings given those terms in recalculation.’’.
imburse a lender authorized to make a cov- section 7(a)(36) of the Small Business Act (15 (m) FARM CREDIT SYSTEM INSTITUTIONS.—
ered loan in an amount that is— U.S.C. 636(a)(36)). (1) DEFINITION OF FARM CREDIT SYSTEM IN-
‘‘(i) 3 percent of the principal amount of (2) INCREASED AMOUNT.—Notwithstanding STITUTION.—In this subsection, the term
the financing of the covered loan up to the interim final rule issued by the Adminis- ‘‘Farm Credit System institution’’—
$350,000; and tration entitled ‘‘Business Loan Program (A) means an institution of the Farm Cred-
‘‘(ii) 1 percent of the principal amount of Temporary Changes; Paycheck Protection it System chartered under the Farm Credit
the financing of the covered loan above Program—Loan Increases’’ (85 Fed. Reg. Act of 1971 (12 U.S.C. 2001 et seq.); and
29842 (May 19, 2020)), an eligible recipient of (B) does not include the Federal Agricul-
$350,000, if applicable.
a covered loan that is eligible for an in- tural Mortgage Corporation.
‘‘(K) SET ASIDE FOR SMALL ENTITIES.—Not
creased covered loan amount as a result of (2) FACILITATION OF PARTICIPATION IN PPP
less than $25,000,000,000 of the total amount
any interim final rule that allows for cov- AND SECOND DRAW LOANS.—
of covered loans guaranteed by the Adminis-
ered loan increases may submit a request for (A) APPLICABLE RULES.—Solely with re-
trator shall be made to eligible entities with
an increase in the covered loan amount even spect to loans under paragraphs (36) and (37)
not more than 10 employees as of February
if— of section 7(a) of the Small Business Act (15
15, 2020.
(A) the initial covered loan amount has U.S.C. 636(a)), Farm Credit Administration
‘‘(L) SET ASIDE FOR COMMUNITY FINANCIAL
been fully disbursed; or regulations and guidance issued as of July
INSTITUTIONS, SMALL INSURED DEPOSITORY IN-
(B) the lender of the initial covered loan 14, 2020, and compliance with such regula-
STITUTIONS, CREDIT UNIONS, AND FARM CREDIT
has submitted to the Administration a Form tions and guidance, shall be deemed func-
SYSTEM INSTITUTIONS.—Not less than 1502 report related to the covered loan. tionally equivalent to requirements ref-
$10,000,000,000 of the total amount of covered (l) CALCULATION OF MAXIMUM LOAN AMOUNT erenced in section 3(a)(iii)(II) of the interim
loans guaranteed by the Administrator shall FOR FARMERS AND RANCHERS UNDER THE PAY- final rule of the Administration entitled
be made by— CHECK PROTECTION PROGRAM.— ‘‘Business Loan Program Temporary
‘‘(i) community financial institutions; (1) IN GENERAL.—Section 7(a)(36) of the Changes; Paycheck Protection Program’’ (85
‘‘(ii) insured depository institutions with Small Business Act (15 U.S.C. 636(a)(36)), as Fed. Reg. 20811 (April 15, 2020)) or any similar
consolidated assets of less than amended by subsection (j) of this section, is requirement referenced in that interim final
$10,000,000,000; amended— rule in implementing such paragraph (37).
‘‘(iii) credit unions with consolidated as- (A) in subparagraph (E), in the matter pre- (B) APPLICABILITY OF CERTAIN LOAN RE-
sets of less than $10,000,000,000; and ceding clause (i), by striking ‘‘During’’ and QUIREMENTS.—For purposes of making loans
‘‘(iv) institutions of the Farm Credit Sys- inserting ‘‘Except as provided in subpara- under paragraph (36) or (37) of section 7(a) of
tem chartered under the Farm Credit Act of graph (T), during’’; and the Small Business Act (15 U.S.C. 636(a)) or
1971 (12 U.S.C. 2001 et seq.) with consolidated (B) by adding at the end the following: forgiving those loans in accordance with sec-
assets of less than $10,000,000,000 (not includ- ‘‘(T) CALCULATION OF MAXIMUM LOAN tion 1106 of the CARES Act (15 U.S.C. 9005)
ing the Federal Agricultural Mortgage Cor- AMOUNT FOR FARMERS AND RANCHERS.— and subparagraph (H) of such paragraph (37),
poration). ‘‘(i) DEFINITION.—In this subparagraph, the sections 4.13, 4.14, and 4.14A of the Farm
‘‘(M) PUBLICATION OF GUIDANCE.—Not later term ‘covered recipient’ means an eligible Credit Act of 1971 (12 U.S.C. 2199, 2202, 2202a)
than 10 days after the date of enactment of recipient that— (including regulations issued under those
this paragraph, the Administrator shall issue ‘‘(I) operates as a sole proprietorship or as sections) shall not apply.
guidance addressing barriers to accessing an independent contractor, or is an eligible (C) RISK WEIGHT.—
capital for minority, underserved, veteran, self-employed individual; (i) IN GENERAL.—With respect to the appli-
and women-owned business concerns for the ‘‘(II) reports farm income or expenses on a cation of Farm Credit Administration cap-
purpose of ensuring equitable access to cov- Schedule F (or any equivalent successor ital requirements, a loan described in clause
ered loans. schedule); and (ii)—
‘‘(N) STANDARD OPERATING PROCEDURE.— ‘‘(III) was in business during the period be- (I) shall receive a risk weight of zero per-
The Administrator shall, to the maximum ginning on February 15, 2019 and ending on cent; and
extent practicable, allow a lender approved June 30, 2019. (II) shall not be included in the calculation
to make covered loans to use existing pro- ‘‘(ii) NO EMPLOYEES.—With respect to cov- of any applicable leverage ratio or other ap-
gram guidance and standard operating proce- ered recipient without employees, the max- plicable capital ratio or calculation.
dures for loans made under this subsection. imum covered loan amount shall be the less- (ii) LOANS DESCRIBED.—A loan referred to
‘‘(O) PROHIBITION ON USE OF PROCEEDS FOR er of— in clause (i) is—
LOBBYING ACTIVITIES.—None of the proceeds ‘‘(I) the sum of— (I) a loan made by a Farm Credit Bank de-
of a covered loan may be used for— ‘‘(aa) the product obtained by multi- scribed in section 1.2(a) of the Farm Credit
‘‘(i) lobbying activities, as defined in sec- plying— Act of 1971 (12 U.S.C. 2002(a)) to a Federal
tion 3 of the Lobbying Disclosure Act of 1995 ‘‘(AA) the gross income of the covered re- Land Bank Association, a Production Credit
(2 U.S.C. 1602); cipient in 2019, as reported on a Schedule F Association, or an agricultural credit asso-
‘‘(ii) lobbying expenditures related to a (or any equivalent successor schedule), that ciation described in that section to make
State or local election; or is not more than $100,000, divided by 12; and loans under paragraph (36) or (37) of section
‘‘(iii) expenditures designed to influence ‘‘(BB) 2.5; and 7(a) of the Small Business Act (15 U.S.C.
the enactment of legislation, appropriations, ‘‘(bb) the outstanding amount of a loan 636(a)) or forgive those loans in accordance
regulation, administrative action, or Execu- under subsection (b)(2) that was made during with section 1106 of the CARES Act (15
tive order proposed or pending before Con- the period beginning on January 31, 2020 and U.S.C. 9005) and subparagraph (H) of such
gress or any State government, State legis- ending on April 3, 2020 that the borrower in- paragraph (37); or
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lature, or local legislature or legislative tends to refinance under the covered loan, (II) a loan made by a Federal Land Bank
body.’’. not including any amount of any advance Association, a Production Credit Associa-
(j) CONTINUED ACCESS TO THE PAYCHECK under the loan that is not required to be re- tion, an agricultural credit association, or
PROTECTION PROGRAM.— paid; or the bank for cooperatives described in sec-
(1) IN GENERAL.—Section 7(a)(36)(E)(ii) of ‘‘(II) $2,000,000. tion 1.2(a) of the Farm Credit Act of 1971 (12
the Small Business Act (15 U.S.C. ‘‘(iii) WITH EMPLOYEES.—With respect to a U.S.C. 2002(a)) under paragraph (36) or (37) of
636(a)(36)(E)(ii)) is amended by striking covered recipient with employees, the max- section 7(a) of the Small Business Act (15
‘‘$10,000,000’’ and inserting ‘‘$2,000,000’’. imum covered loan amount shall be cal- U.S.C. 636(a)).
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4741
(D) RESERVATION OF LOAN GUARANTEES.— ‘‘(bb) employed not more than 250 employ- ‘‘(i) under the same terms, conditions, and
Section 7(a)(36)(S) of the Small Business Act ees during not fewer than 5 months out of processes as a loan made under this sub-
(15 U.S.C. 636(a)(36)(S)) is amended— that year; section; and
(i) in clause (i)— ‘‘(iv) the term ‘eligible entity’— ‘‘(ii) to meet working capital needs, ac-
(I) in subclause (I), by striking ‘‘and’’ at ‘‘(I) means any small business concern quire fixed assets, or refinance existing in-
the end; that— debtedness while recovering from the
(II) in subclause (II), by striking the period ‘‘(aa) except with respect to a covered sea- COVID–19 pandemic.
at the end and inserting ‘‘; and’’; and sonal employer, employs not more than 500 ‘‘(C) MAXIMUM LOAN AMOUNT.—The max-
(III) by adding at the end the following: employees; imum amount of a covered loan made to an
‘‘(III) institutions of the Farm Credit Sys- ‘‘(bb)(AA) except as provided in subitems eligible entity shall be the lesser of—
tem chartered under the Farm Credit Act of (BB), (CC), and (DD), had gross receipts dur- ‘‘(i) $10,000,000; or
1971 (12 U.S.C. 2001 et seq.) with consolidated ing the first or second quarter in 2020 that ‘‘(ii) the amount equal to 200 percent of the
assets of not less than $10,000,000,000 and less are less than 50 percent of the gross receipts average annual receipts of the eligible enti-
than $50,000,000,000.’’; and of the business concern during the same ty.
(ii) in clause (ii)— quarter in 2019; ‘‘(D) LOAN NUMBER LIMITATION.—An eligible
(I) in subclause (II), by striking ‘‘and’’ at ‘‘(BB) if the small business concern was entity may only receive 1 covered loan.
the end; not in business during the first or second ‘‘(E) 90 DAY RULE FOR MAXIMUM LOAN
(II) in subclause (III), by striking the pe- quarter of 2019, but was in business during AMOUNT.—The maximum aggregate loan
riod at the end and inserting ‘‘; and’’; and the third and fourth quarter of 2019, had amount of loans guaranteed under this sub-
(III) by adding at the end the following: gross receipts during the first or second section that are approved for an eligible en-
‘‘(IV) institutions of the Farm Credit Sys- quarter of 2020 that are less than 50 percent tity (including any affiliates) within 90 days
tem chartered under the Farm Credit Act of of the amount of the gross receipts of the of approval of another loan under this sub-
1971 (12 U.S.C. 2001 et seq.) with consolidated small business concern during the third or section for the eligible entity (including any
assets of less than $10,000,000,000.’’. fourth quarter of 2019; affiliates) shall not exceed $10,000,000.
(n) DEFINITION OF SEASONAL EMPLOYER.— ‘‘(CC) if the small business concern was not ‘‘(F) APPLICATION DEADLINE.—An eligible
(1) PPP LOANS.—Section 7(a)(36)(A) of the in business during the first, second, or third entity desiring a covered loan shall submit
Small Business Act (15 U.S.C. 636(a)(36)(A)) is quarter of 2019, but was in business during an application not later than December 31,
amended— the fourth quarter of 2019, had gross receipts 2020.
(A) in clause (xi), by striking ‘‘and’’ at the during the first or second quarter of 2020 that ‘‘(G) FEE WAIVER.—With respect to a cov-
end; are less than 50 percent of the amount of the ered loan—
(B) in clause (xii), by striking the period at gross receipts of the small business concern ‘‘(i) in lieu of the fee otherwise applicable
the end and inserting ‘‘; and’’; and during the fourth quarter of 2019; or under paragraph (23)(A), the Administrator
(C) by adding at the end the following: ‘‘(DD) if the small business concern was shall collect no fee; and
‘‘(xiii) the term ‘seasonal employer’ means not in business during the first or second ‘‘(ii) in lieu of the fee otherwise applicable
an eligible recipient that— quarter of 2020, had gross receipts during any under paragraph (18)(A), the Administrator
‘‘(I) does not operate for more than 7 2-month period during 2020 that are less than shall collect no fee.
months in any calendar year; or 50 percent of the amount of the gross re- ‘‘(H) LOAN TERMS.—
‘‘(II) during the preceding calendar year, ceipts of the small business concern during ‘‘(i) IN GENERAL.—In order to receive a cov-
had gross receipts for any 6 months of that any other 2-month period during 2020; and ered loan, an eligible entity shall not be re-
year that were not more than 33.33 percent of ‘‘(cc)(AA) is a covered seasonal employer quired to show that the eligible entity is un-
the gross receipts of the employer for the seeking a covered loan of not more than able to obtain credit elsewhere.
other 6 months of that year.’’. $2,000,000; or ‘‘(ii) MATURITY AND INTEREST RATE.—A cov-
(2) LOAN FORGIVENESS.—Paragraph (12) of ‘‘(BB) is a small business concern the prin- ered loan shall—
section 1106(a) of the CARES Act (15 U.S.C. cipal place of business of which is in, and not ‘‘(I) have a maturity of 20 years; and
9005(a)), as so redesignated by subsection less than 50 percent of the total gross income ‘‘(II) bear an interest rate of equal to the
(d)(2) of this section, is amended to read as of which is derived from the active conduct sum of—
follows: of the business concern within, a small busi- ‘‘(aa) the Secured Overnight Financing
‘‘(12) the terms ‘payroll costs’ and ‘sea- ness low-income census tract; and Rate in effect for each of the days in the rel-
sonal employer’ have the meanings given ‘‘(II) does not include— evant quarter that interest is charged, as
those terms in section 7(a)(36) of the Small ‘‘(aa) an entity described in paragraph compiled and released by the Federal Re-
Business Act (15 U.S.C. 636(a)(36)).’’. (37)(A)(v)(II); serve Bank of New York; and
‘‘(bb) any entity that received a loan under ‘‘(bb) 300 basis points.
(o) CHANGES TO THE 7(A) LOAN GUARANTY
paragraph (37); or ‘‘(iii) GUARANTEE.—In an agreement to par-
PROGRAM FOR RECOVERY SECTOR BUSINESS ‘‘(cc) any entity that received a loan under ticipate in a covered loan on a deferred basis,
CONCERNS.—Section 7(a) of the Small Busi- paragraph (36) after the date of enactment of the participation by the Administration
ness Act (15 U.S.C. 636(a)), as amended by this paragraph; and shall be 100 percent of the covered loan.
subsection (i) of this section, is amended by ‘‘(v) the term ‘small business low-income ‘‘(iv) SUBSIDY FOR INTEREST PAYMENTS.—
adding at the end the following: census tract’— ‘‘(I) IN GENERAL.—The Administrator shall
‘‘(38) RECOVERY SECTOR LOANS.— ‘‘(I) means— pay the amount of interest that is owed on a
‘‘(A) DEFINITIONS.—In this paragraph— ‘‘(aa) a covered population census tract for covered loan in regular servicing status for
‘‘(i) the term ‘covered loan’ means a loan which the poverty rate is not less than 20 the maturity of the loan such that the inter-
made under this paragraph; percent; or est rate paid by the eligible entity is, at all
‘‘(ii) the term ‘covered population census ‘‘(bb) an area— times, equal to a rate of 1 percent.
tract’ means a population census tract for ‘‘(AA) that is not tracted as a population ‘‘(II) TIMING OF PAYMENT.—The Adminis-
which— census tract; trator shall—
‘‘(I) in the case of a tract that is not lo- ‘‘(BB) for which the poverty rate in the ‘‘(aa) begin making payments under sub-
cated within a metropolitan area, the me- equivalent county division (as defined by the clause (I) not later than 30 days after the
dian income does not exceed 80 percent of the Bureau of the Census) is not less than 20 per- date on which the first such payment is due;
statewide (or, with respect to a possession or cent; and and
territory of the United States, the ‘‘(CC) for which the median income in the ‘‘(bb) make payments without regard to
possession- or territory-wide) median family equivalent county division (as defined by the the payment deferral described in clause (iv).
income; or Bureau of the Census) does not exceed 80 per- ‘‘(III) APPLICATION OF PAYMENT.—Any pay-
‘‘(II) in the case of a tract that is located cent of the statewide (or, with respect to a ment made by the Administrator under sub-
within a metropolitan area, the median fam- possession or territory of the United States, clause (I) shall be applied to the covered loan
ily income does not exceed 80 percent of the the possession- or territory-wide) median in- such that the eligible entity is relieved of
greater of the statewide (or, with respect to come; and the obligation to pay that amount.
a possession or territory of the United ‘‘(II) does not include any area or popu- ‘‘(v) PAYMENT DEFERRAL.—
States, the possession- or territory-wide) me- lation census tract with a median family in- ‘‘(I) IN GENERAL.—No payment of principal
dian family income and the metropolitan come that is not less than 120 percent of the or interest shall be due on a covered loan for
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area median family income; median family income in the United States, the first 2 years of the covered loan.
‘‘(iii) the term ‘covered seasonal employer’ according to the most recent American Com- ‘‘(II) ADDITIONAL DEFERRAL.—After the 2-
means a small business concern that— munities Survey data from the Bureau of the year deferral period under subclause (I), the
‘‘(I) is a seasonal employer, as defined in Census. Administrator may grant not more than an
paragraph (36); and ‘‘(B) LOANS.—Except as otherwise provided additional 2 years of principal deferral to the
‘‘(II) during the preceding calendar year— in this paragraph, the Administrator may eligible entity if the eligible entity is cer-
‘‘(aa) had gross receipts as described in guarantee covered loans made to eligible en- tified by the Administrator and the Sec-
paragraph (36)(A)(xiii)(II); and tities— retary as economically distressed based on
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S4742 CONGRESSIONAL RECORD — SENATE August 4, 2020
publicly available criteria established by the more than 10 percent of the total activities tion 1129(a)(9)(A) of this title and subsection
Administrator. of the organization; (e) of this section, a plan that provides for
‘‘(vi) LIMITATION ON CHANGES IN TERMS.— ‘‘(cc) the destination marketing organiza- payment of a claim of a kind specified in sec-
Notwithstanding any other provision of this tion employs not more than 150 employees; tion 503(b)(10) of this title may be confirmed
subsection, for a covered loan, the Adminis- and under subsection (b) of this section if the
trator shall not approve any increase in loan ‘‘(dd) the destination marketing organiza- plan proposes to make payments on account
amount or change in guaranty percentage, tion— of such claim when due under the terms of
interest rate, interest accrual method, or ‘‘(AA) is described in section 501(c) of the the loan giving rise to such claim.’’.
maturity, except for such changes as may be Internal Revenue Code and is exempt from (4) CONFIRMATION OF PLAN FOR FAMILY
necessary for prepayment and the deferment taxation under section 501(a) of such Code; or FARMERS AND FISHERMEN.—Section 1225 of
of payment under clause (v). ‘‘(BB) is a quasi-governmental entity or is title 11, United States Code, is amended by
‘‘(I) PROHIBITION ON USE OF PROCEEDS FOR a political subdivision of a State or local adding at the end the following:
DISASTER LOANS.—An eligible entity shall not government, including any instrumentality ‘‘(d) Notwithstanding section 1222(a)(2) of
use the proceeds of a covered loan to refi- of those entities.’’. this title and subsection (b)(1) of this sec-
nance any loan made under subsection (b). (q) PROHIBITION ON USE OF LOAN PROCEEDS tion, a plan that provides for payment of a
‘‘(J) SECONDARY MARKET.—In order to in- FOR LOBBYING ACTIVITIES.—Section claim of a kind specified in section 503(b)(10)
crease the liquidity of the secondary market 7(a)(36)(F) of the Small Business Act (15 of this title may be confirmed if the plan
for covered loans, the Administrator shall, U.S.C. 636(a)(36)(F)) is amended by adding at proposes to make payments on account of
not later than 60 days after the date of en- the end the following: such claim when due under the terms of the
actment of this paragraph, substantially re- ‘‘(vi) PROHIBITION.—None of the proceeds of loan giving rise to such claim.’’.
duce barriers to the sale of covered loans on a covered loan may be used for— (5) CONFIRMATION OF PLAN FOR INDIVID-
the secondary market. ‘‘(I) lobbying activities, as defined in sec- UALS.—Section 1325 of title 11, United States
‘‘(K) LENDER ELIGIBILITY.—In order to in- tion 3 of the Lobbying Disclosure Act of 1995 Code, is amended by adding at the end the
crease access to and the equitable distribu- (2 U.S.C. 1602); following:
tion of covered loans, the Administrator ‘‘(II) lobbying expenditures related to a ‘‘(d) Notwithstanding section 1322(a)(2) of
shall establish a process by which a lender State or local election; or this title and subsection (b)(1) of this sec-
approved to make loans under paragraph (36) ‘‘(III) expenditures designed to influence tion, a plan that provides for payment of a
may make covered loans. claim of a kind specified in section 503(b)(10)
the enactment of legislation, appropriations,
‘‘(L) REIMBURSEMENT FOR LOAN PROCESSING of this title may be confirmed if the plan
regulation, administrative action, or Execu-
AND SERVICING.—The Administrator shall re- proposes to make payments on account of
tive order proposed or pending before Con-
imburse a lender authorized to make a cov- such claim when due under the terms of the
gress or any State government, State legis-
ered loan in an amount that is— loan giving rise to such claim.’’.
lature, or local legislature or legislative
‘‘(i) 3 percent of the principal amount of (6) EFFECTIVE DATE; SUNSET.—
body.’’.
the financing of the covered loan up to (r) EFFECTIVE DATE; APPLICABILITY.—The (A) EFFECTIVE DATE.—The amendments
$350,000; and amendments made to paragraph (36) of sec- made by paragraphs (1) through (5) shall—
‘‘(ii) 1 percent of the principal amount of tion 7(a) of the Small Business Act (15 U.S.C. (i) take effect on the date on which the Ad-
the financing of the covered loan above 636(a)) and title I of the CARES Act (Public ministrator submits to the Director of the
$350,000, if applicable. Law 116–136) under this section shall be effec- Executive Office for United States Trustees a
‘‘(M) STANDARD OPERATING PROCEDURE.— tive as if included in the CARES Act and written determination that, subject to satis-
The Administrator shall, to the maximum shall apply to any loan made pursuant to fying any other eligibility requirements, any
extent practicable, allow a lender approved section 7(a)(36) of the Small Business Act (15 debtor in possession or trustee that is au-
to make covered loans to use existing pro- U.S.C. 636(a)(36)). thorized to operate the business of the debt-
gram guidance and standard operating proce- (s) BANKRUPTCY PROVISIONS.— or under section 1183, 1184, 1203, 1204, or 1304
dures for loans made under this subsection.’’. (1) IN GENERAL.—Section 364 of title 11, of title 11, United States Code, would be eli-
(p) ELIGIBILITY OF 501(C)(6) ORGANIZATIONS United States Code, is amended by adding at gible for a loan under paragraphs (36) and (37)
FOR LOANS UNDER THE PAYCHECK PROTECTION the end the following: of section 7(a) of the Small Business Act (15
PROGRAM.—Section 7(a)(36)(D) of the Small ‘‘(g)(1) The court, after notice and a hear- U.S.C. 636(a)); and
Business Act (15 U.S.C. 636(a)(36)(D)) is ing, may authorize a debtor in possession or (ii) apply to any case pending on or com-
amended— a trustee that is authorized to operate the menced on or after the date described in
(1) in clause (v), by inserting ‘‘or whether business of the debtor under section 1183, clause (i).
an organization described in clause (vii) em- 1184, 1203, 1204, or 1304 of this title to obtain (B) SUNSET.—
ploys not more than 150 employees,’’ after a loan under paragraph (36) or (37) of section (i) IN GENERAL.—If the amendments made
‘‘clause (i)(I),’’; 7(a) of the Small Business Act (15 U.S.C. by this subsection take effect under subpara-
(2) in clause (vi), by inserting ‘‘, an organi- 636(a)), and such loan shall be treated as a graph (A), effective on the date that is 2
zation described in clause (vii),’’ after ‘‘non- debt to the extent the loan is not forgiven in years after the date of enactment of this
profit organization’’; and accordance with section 1106 of the CARES Act—
(3) by adding at the end the following: Act (15 U.S.C. 9005) or subparagraph (H) of (I) section 364 of title 11, United States
‘‘(vii) ELIGIBILITY FOR CERTAIN 501(C)(6) OR- such paragraph (37), as applicable, with pri- Code, is amended by striking subsection (g);
GANIZATIONS.— ority equal to a claim of the kind specified (II) section 503(b) of title 11, United States
‘‘(I) IN GENERAL.—Except as provided in in subsection (c)(1) of this section. Code, is amended—
subclause (II), any organization that is de- ‘‘(2) The trustee may incur debt described (aa) in paragraph (8)(B), by adding ‘‘and’’
scribed in section 501(c)(6) of the Internal in paragraph (1) notwithstanding any provi- at the end;
Revenue Code and that is exempt from tax- sion in a contract, prior order authorizing (bb) in paragraph (9), by striking ‘‘; and’’ at
ation under section 501(a) of such Code (ex- the trustee to incur debt under this section, the end and inserting a period; and
cluding professional sports leagues and orga- prior order authorizing the trustee to use (cc) by striking paragraph (10);
nizations with the purpose of promoting or cash collateral under section 363, or applica- (III) section 1191 of title 11, United States
participating in a political campaign or ble law that prohibits the debtor from incur- Code, is amended by striking subsection (f);
other activity) shall be eligible to receive a ring additional debt. (IV) section 1225 of title 11, United States
covered loan if— ‘‘(3) The court shall hold a hearing within Code, is amended by striking subsection (d);
‘‘(aa) the organization does not receive 7 days after the filing and service of the mo- and
more than 10 percent of its receipts from lob- tion to obtain a loan described in paragraph (V) section 1325 of title 11, United States
bying activities; (1).’’. Code, is amended by striking subsection (d).
‘‘(bb) the lobbying activities of the organi- (2) ALLOWANCE OF ADMINISTRATIVE EX- (ii) APPLICABILITY.—Notwithstanding the
zation do not comprise more than 10 percent PENSES.—Section 503(b) of title 11, United amendments made by clause (i) of this sub-
of the total activities of the organization; States Code, is amended— paragraph, if the amendments made by para-
and (A) in paragraph (8)(B), by striking ‘‘and’’ graphs (1), (2), (3), (4), and (5) take effect
‘‘(cc) the organization employs not more at the end; under subparagraph (A) of this paragraph,
than 150 employees. (B) in paragraph (9), by striking the period such amendments shall apply to any case
‘‘(II) DESTINATION MARKETING ORGANIZA- at the end and inserting ‘‘; and’’; and under title 11, United States Code, com-
TIONS.—Notwithstanding subclause (I), dur- (C) by adding at the end the following: menced before the date that is 2 years after
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ing the covered period, any destination mar- ‘‘(10) any debt incurred under section the date of enactment of this Act.
keting organization shall be eligible to re- 364(g)(1) of this title.’’. (t) OVERSIGHT.—
ceive a covered loan if— (3) CONFIRMATION OF PLAN FOR REORGANIZA- (1) COMPLIANCE WITH OVERSIGHT REQUIRE-
‘‘(aa) the destination marketing organiza- TION.—Section 1191 of title 11, United States MENTS.—
tion does not receive more than 10 percent of Code, is amended by adding at the end the (A) IN GENERAL.—Except as provided in
its receipts from lobbying activities; following: subparagraph (B), on and after the date of
‘‘(bb) the lobbying activities of the destina- ‘‘(f) SPECIAL PROVISION RELATED TO enactment of this Act, the Administrator
tion marketing organization do not comprise COVID–19 PANDEMIC.—Notwithstanding sec- shall comply with any data or information
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4743
requests or inquiries made by the Comp- proved, disclose to the Administrator wheth- ‘‘(b) ESTABLISHMENT.—
troller General of the United States not later er the entity is a covered entity. ‘‘(1) FACILITY.—The Administrator shall es-
than 30 days (or such later date as the Comp- (3) APPLICABILITY.—The requirement under tablish and carry out a facility to improve
troller General may specify) after receiving paragraph (2)— the recovery of eligible small business con-
the request or inquiry. (A) shall apply with respect to any trans- cerns from the COVID–19 pandemic, increase
(B) EXCEPTION.—If the Administrator is un- action made under paragraph (36), (37), or (38) resiliency in the manufacturing supply chain
able to comply with a request or inquiry de- of section 7(a) of the Small Business Act (15 of eligible small business concerns, and in-
scribed in subparagraph (A) within the 30- U.S.C. 636(a)), as added and amended by this crease the economic development of small
day period or, if applicable, later period de- section, on or after the date of enactment of business low-income census tracts by pro-
scribed in that clause, the Administrator this Act; and viding financial assistance to participating
shall, during that 30-day (or later) period, (B) shall not apply with respect to— investment companies that facilitate equity
submit to the Committee on Small Business (i) any transaction described in subpara- financings to eligible small business con-
and Entrepreneurship of the Senate and the graph (A) that was made before the date of cerns in accordance with this section.
Committee on Small Business of the House enactment of this Act; or ‘‘(2) ADMINISTRATION OF FACILITY.—The fa-
of Representatives a notification that in- (ii) forgiveness under section 1106 of the cility shall be administered by the Adminis-
cludes a detailed justification for the inabil- CARES Act (15 U.S.C. 9005) or any other pro- trator acting through the Associate Admin-
ity of the Administrator to comply with the vision of law of any loan associated with any istrator described in section 201.
request or inquiry. transaction described in subparagraph (A) ‘‘(c) APPLICATIONS.—
(2) TESTIMONY.—Not later than the date that was made before the date of enactment ‘‘(1) IN GENERAL.—Any small business in-
that is 30 days after the date of enactment of of this Act. vestment company may submit to the Ad-
this Act, and every quarter thereafter until (v) SMALL BUSINESS INVESTMENT COMPANY
ministrator an application to participate in
the date that is 2 years after the date of en- PROGRAM.—
the facility.
actment of this Act, the Administrator and (1) IN GENERAL.—Part A of title III of the
‘‘(2) REQUIREMENTS FOR APPLICATION.—An
the Secretary of the Treasury shall testify Small Business Investment Act of 1958 (15
application to participate in the facility
before the Committee on Small Business and U.S.C. 681 et seq.) is amended—
shall include the following:
Entrepreneurship of the Senate and the Com- (A) in section 302(a) (15 U.S.C. 682(a))—
‘‘(A) A business plan describing how the
mittee on Small Business of the House of (i) in paragraph (1)—
(I) in subparagraph (A), by striking ‘‘or’’ at applicant intends to make successful equity
Representatives regarding implementation investments in eligible small business con-
the end;
of this section and the amendments made by cerns.
(II) in subparagraph (B), by striking the pe-
this section. ‘‘(B) Information regarding the relevant in-
riod at the end and inserting ‘‘; or’’; and
(u) CONFLICTS OF INTEREST.— (III) by adding at the end the following: vestment qualifications and backgrounds of
(1) DEFINITIONS.—In this subsection: ‘‘(C) $20,000,000, adjusted every 5 years for the individuals responsible for the manage-
(A) CONTROLLING INTEREST.—The term inflation, with respect to each licensee au- ment of the applicant.
‘‘controlling interest’’ means owning, con- thorized or seeking authority to sell bonds ‘‘(C) A description of the extent to which
trolling, or holding not less than 20 percent, to Administration as a participating invest- the applicant meets the selection criteria
by vote or value, of the outstanding amount ment company under section 321.’’; and under subsection (d)(2).
of any class of equity interest in an entity. (B) by adding at the end the following: ‘‘(3) EXCEPTIONS TO APPLICATION FOR NEW
(B) COVERED ENTITY.— ‘‘SEC. 321. SMALL BUSINESS AND DOMESTIC PRO- LICENSEES.—Not later than 90 days after the
(i) DEFINITION.—The term ‘‘covered entity’’ DUCTION RECOVERY INVESTMENT date of enactment of this section, the Ad-
means an entity in which a covered indi- FACILITY. ministrator shall reduce requirements for
vidual directly or indirectly holds a control- ‘‘(a) DEFINITIONS.—In this section: applicants applying to operate as a partici-
ling interest. ‘‘(1) ELIGIBLE SMALL BUSINESS CONCERN.— pating investment company under this sec-
(ii) TREATMENT OF SECURITIES.—For the The term ‘eligible small business concern’— tion in order to encourage the participation
purpose of determining whether an entity is ‘‘(A) means a small business concern that— of new small business investment companies
a covered entity, the securities owned, con- ‘‘(i) meets the revenue reduction require- in the facility under this section, which may
trolled, or held by 2 or more individuals who ments established by paragraph include the requirements established under
are related as described in subparagraph (37)(A)(v)(I)(cc) of section 7(a) of the Small part 107 of title 13, Code of Federal Regula-
(C)(ii) shall be aggregated. Business Act (15 U.S.C. 636(a)); tions, or any successor regulation, relating
(C) COVERED INDIVIDUAL.—The term ‘‘cov- ‘‘(ii) is a manufacturing business that is to—
ered individual’’ means— assigned a North American Industry Classi- ‘‘(A) the approval of initial management
(i) the President, the Vice President, the fication System code beginning with 31, 32, expenses;
head of an Executive department, or a Mem- or 33 at the time at which the small business ‘‘(B) the management ownership diversity
ber of Congress; and concern receives an investment from a par- requirement;
(ii) the spouse, child, son-in-law, or daugh- ticipating investment company under the fa- ‘‘(C) the disclosure of general compen-
ter-in-law, as determined under applicable cility; or satory practices and fee structures; or
common law, of an individual described in ‘‘(iii) is located in a small business low-in- ‘‘(D) any other requirement that the Ad-
clause (i). come census tract; and ministrator determines to be an obstacle to
(D) EXECUTIVE DEPARTMENT.—The term ‘‘(B) does not include an entity described achieving the purposes described in this
‘‘Executive department’’ has the meaning in paragraph (37)(A)(v)(II) of such section paragraph.
given the term in section 101 of title 5, 7(a). ‘‘(d) SELECTION OF PARTICIPATING INVEST-
United States Code. ‘‘(2) FACILITY.—The term ‘facility’ means MENT COMPANIES.—
(E) MEMBER OF CONGRESS.—The term the facility established under subsection (b). ‘‘(1) DETERMINATION.—
‘‘Member of Congress’’ means a Member of ‘‘(3) FUND.—The term ‘Fund’ means the ‘‘(A) IN GENERAL.—Except as provided in
the Senate or House of Representatives, a fund established under subsection (h). paragraph (3), not later than 60 days after
Delegate to the House of Representatives, ‘‘(4) PARTICIPATING INVESTMENT COMPANY.— the date on which the Administrator re-
and the Resident Commissioner from Puerto The term ‘participating investment com- ceives an application under subsection (c),
Rico. pany’ means a small business investment the Administrator shall—
(F) EQUITY INTEREST.—The term ‘‘equity company approved under subsection (d) to ‘‘(i) make a final determination to approve
interest’’ means— participate in the facility or disapprove such applicant to participate
(i) a share in an entity, without regard to ‘‘(5) PROTÉGÉ INVESTMENT COMPANY.—The in the facility; and
whether the share is— term ‘protégé investment company’ means a ‘‘(ii) transmit the determination to the ap-
(I) transferable; or small business investment company that— plicant in writing.
(II) classified as stock or anything similar; ‘‘(A) is majority managed by new, inexperi- ‘‘(B) COMMITMENT AMOUNT.—Except as pro-
(ii) a capital or profit interest in a limited enced, or otherwise underrepresented fund vided in paragraph (3), at the time of ap-
liability company or partnership; or managers; and proval of an applicant, the Administrator
(iii) a warrant or right, other than a right ‘‘(B) elects and is selected by the Adminis- shall make a determination of the amount of
to convert, to purchase, sell, or subscribe to tration to participate in the pathway- the commitment that may be awarded to the
a share or interest described in clause (i) or protégé program under subsection (g). applicant under this section.
(ii), respectively. ‘‘(6) SMALL BUSINESS CONCERN.—The term ‘‘(2) SELECTION CRITERIA.—In making a de-
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(2) REQUIREMENT.—The principal executive ‘small business concern’ has the meaning termination under paragraph (1), the Admin-
officer and the principal financial officer, or given the term in section 3(a) of the Small istrator shall consider—
individuals performing similar functions, of Business Act (15 U.S.C. 632(a)). ‘‘(A) the probability that the investment
an entity seeking to enter a transaction ‘‘(7) SMALL BUSINESS LOW-INCOME CENSUS strategy of the applicant will successfully
made under paragraph (36), (37), or (38) of sec- TRACT.—The term ‘small business low-in- repay any financial assistance provided by
tion 7(a) of the Small Business Act (15 U.S.C. come census tract’ has the meaning given the Administration, including the prob-
636(a)), as added and amended by this sec- the term in section 7(a)(38)(A) of the Small ability of a return significantly in excess
tion, shall, before that transaction is ap- Business Act. thereof;
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S4744 CONGRESSIONAL RECORD — SENATE August 4, 2020
‘‘(B) the probability that the investments ‘‘(I) shall be determined at the time of ap- ‘‘(A) DISTRIBUTIONS.—As a condition of re-
made by the applicant will— proval under subsection (d); and ceiving a commitment under the facility, a
‘‘(i) provide capital to eligible small busi- ‘‘(II) without the approval of the Adminis- participating investment company shall
ness concerns; or tration, shall not be revised, including to re- make all distributions to the Administrator
‘‘(ii) create or preserve jobs in the United flect subsequent distributions of profits, re- in the same form and in a manner as are
States; turns of capital, or repayments of bonds, or made to investors, or otherwise at a time
‘‘(C) the probability that the applicant will otherwise. and in a manner consistent with regulations
meet the objectives in the business plan of ‘‘(C) PROFIT SHARING PERFORMANCE COM- or policies of the Administration.
the applicant, including the financial goals, PENSATION.— ‘‘(B) ALLOCATIONS.—A participating invest-
and, if applicable, the pathway-protégé pro- ‘‘(i) RECEIPT BY ADMINISTRATION.—The Ad- ment company shall make allocations of in-
gram in accordance with subsection (g); and ministration shall receive a share of profits come, gain, loss, deduction, and credit to the
‘‘(D) the probability that the applicant will of not more than 2 percent, which shall be Administrator with respect to any out-
assist eligible small business concerns in deposited into the Fund and be available to standing bonds as if the Administrator were
achieving profitability. make commitments under this subsection. an investor.
‘‘(3) APPROVAL OF PARTICIPATING INVEST- ‘‘(ii) RECEIPT BY MANAGERS.—The managers ‘‘(2) FEES.—The Administrator may not
MENT COMPANIES.— of the participating investment company charge fees for participating investment
‘‘(A) PROVISIONAL APPROVAL.— may receive a maximum profit sharing per- companies other than examination fees that
‘‘(i) IN GENERAL.—Notwithstanding para- formance compensation of 25 percent minus are consistent with the license of the partici-
graph (1), with respect to an application sub- the share of profits paid to the Administra- pating investment company.
mitted by an applicant to operate as a par- tion under clause (i). ‘‘(3) BIFURCATION.—Losses on bonds issued
ticipating investment company under this ‘‘(D) PROHIBITION ON DISTRIBUTIONS.—No by participating investment companies shall
section, the Administrator may provide pro- distributions on capital, including profit dis- not be offset by fees or any other charges on
visional approval for the applicant in lieu of tributions, shall be made by the partici- debenture small business investment compa-
a final determination of approval and deter- pating investment company to the investors nies.
mination of the amount of the commitment or managers of the participating investment ‘‘(g) PROTÉGÉ PROGRAM.—The Adminis-
under that paragraph. company until the Administration has re- trator shall establish a pathway-protégé pro-
‘‘(ii) PURPOSE.—The purpose of a provi- ceived payment of all accrued interest on the gram in which a protégé investment com-
sional approval under clause (i) is to— bond committed under this section. pany may receive technical assistance and
‘‘(I) encourage applications from invest- ‘‘(E) REPAYMENT OF PRINCIPAL.—Except as program support from a participating invest-
ment companies with an investment man- described in subparagraph (F), repayments of ment company on a voluntary basis and
date from the committed private market principal of the bond of a participating in- without penalty for non-participation.
capital of the investment company that does vestment company shall be— ‘‘(h) LOSS LIMITING FUND.—
not conform to the requirements described in ‘‘(i) made at the same time as returns of ‘‘(1) IN GENERAL.—There is established in
this section at the time of application; private capital; and the Treasury a fund for making commit-
‘‘(II) allow the applicant to more effec- ‘‘(ii) in amounts equal to the pro rata ments and purchasing bonds with equity fea-
tively raise capital commitments in the pri- share of the Administration of the total tures under the facility and receiving capital
vate markets by referencing the intent of amount being repaid or returned at such returned by participating investment compa-
the Administrator to award the applicant a time. nies.
commitment; and ‘‘(F) LIQUIDATION OR DEFAULT.—Upon any ‘‘(2) USE OF FUNDS.—Amounts appropriated
‘‘(III) allow the applicant to more precisely liquidation event or default, as defined by to the Fund or deposited in the Fund under
request the desired amount of commitment the Administration, any unpaid principal or paragraph (3) shall be available to the Ad-
pending the securing of capital from private accrued interest on the bond shall— ministrator, without further appropriation,
market investors. ‘‘(i) have a priority over all equity of the for making commitments and purchasing
‘‘(iii) LIMIT ON PERIOD OF THE TIME.—The participating investment company; and bonds under the facility and expenses and
period between a provisional approval under ‘‘(ii) be paid before any return of equity or payments, excluding administrative ex-
clause (i) and the final determination of ap- any other distributions to the investors or penses, relating to the operations of the Ad-
proval under paragraph (1) shall not exceed managers of the participating investment ministrator under the facility.
12 months. company. ‘‘(3) DEPOSITING OF AMOUNTS.—
‘‘(e) COMMITMENTS AND SBIC BONDS.— ‘‘(3) AMOUNT OF COMMITMENTS AND PUR- ‘‘(A) IN GENERAL.—All amounts received by
‘‘(1) IN GENERAL.—The Administrator may, CHASES.— the Administrator from a participating in-
out of amounts available in the Fund, pur- ‘‘(A) MAXIMUM AMOUNT.—The maximum vestment company relating to the facility,
chase or commit to purchase from a partici- amount of outstanding bonds and commit- including any moneys, property, or assets
pating investment company 1 or more accru- ments to purchase bonds for any partici- derived by the Administrator from oper-
ing bonds that include equity features as de- pating investment company under the facil- ations in connection with the facility, shall
scribed in this subsection. ity shall be the lesser of— be deposited in the Fund.
‘‘(2) BOND TERMS.—A bond purchased by the ‘‘(i) twice the amount of the regulatory ‘‘(B) PERIOD OF AVAILABILITY.—Amounts
Administrator from a participating invest- capital of the participating investment com- deposited under subparagraph (A) shall re-
ment company under this subsection shall pany; or main available until expended.
have the following terms and conditions: ‘‘(ii) $200,000,000. ‘‘(i) APPLICATION OF OTHER SECTIONS.—To
‘‘(A) TERM AND INTEREST.— ‘‘(4) COMMITMENT PROCESS.—Commitments the extent not inconsistent with require-
‘‘(i) IN GENERAL.—The bond shall be issued by the Administration to purchase bonds ments under this section, the Administrator
for a term of not less than 15 years and shall under the facility shall remain available to may apply sections 309, 311, 312, 313, and 314
bear interest at a rate determined by the Ad- be sold by a participating investment com- to activities under this section and an offi-
ministrator of not more than 2 percent. pany until the end of the fourth fiscal year cer, director, employee, agent, or other par-
‘‘(ii) ACCRUAL OF INTEREST.—Interest on following the year in which the commitment ticipant in a participating investment com-
the bond shall accrue and shall be payable in is made, subject to review and approval by pany shall be subject to the requirements
accordance with subparagraph (D). the Administration based on regulatory com- under such sections.
‘‘(iii) PREPAYMENT.—The bond shall be pliance, financial status, change in manage- ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—
prepayable without penalty after the end of ment, deviation from business plan, and such There is authorized to be appropriated for
the 1-year period beginning on the date on other limitations as may be determined by the first fiscal year beginning after the date
which the bond was purchased. the Administration by regulation or other- of enactment of this part $10,000,000,000 to
‘‘(B) PROFITS.— wise. carry out the facility. Amounts appropriated
‘‘(i) IN GENERAL.—The Administration shall ‘‘(5) COMMITMENT CONDITIONS.— pursuant to this subsection shall remain
be entitled to receive a share of the profits ‘‘(A) IN GENERAL.—As a condition of receiv- available until the end of the second fiscal
net of any profit sharing performance com- ing a commitment under the facility, not year beginning after the date of enactment
pensation of the participating investment less than 50 percent of amounts invested by of this section.’’.
company equal to the quotient obtained by the participating investment company shall (2) APPROVAL OF BANK-OWNED, NON-LEVER-
dividing— be invested in eligible small business con- AGED APPLICANTS.—Section 301(c)(2) of the
‘‘(I) one-third of the commitment that the cerns. Small Business Investment Act of 1958 (15
participating investment company is ap- ‘‘(B) EXAMINATIONS.—In addition to the U.S.C. 681(c)(2)) is amended—
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proved for under subsection (d); by matters set forth in section 310(c), the Ad- (A) in subparagraph (B), in the matter pre-
‘‘(II) the commitment approved under sub- ministration shall examine each partici- ceding clause (i), by striking ‘‘Within’’ and
section (d) plus the regulatory capital of the pating investment company in such detail so inserting ‘‘Except as provided in subpara-
participating investment company at the as to determine whether the participating graph (C), within’’; and
time of approval under that subsection. investment company has complied with the (B) by adding at the end the following:
‘‘(ii) DETERMINATION OF PERCENTAGE.—The requirements under this subsection. ‘‘(C) EXCEPTION FOR BANK-OWNED, NON-LE-
share to which the Administration is enti- ‘‘(f) DISTRIBUTIONS AND FEES.— VERAGED APPLICANTS.—Notwithstanding sub-
tled under clause (i)— ‘‘(1) DISTRIBUTION REQUIREMENTS.— paragraph (B), not later than 45 days after
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4745
the date on which the Administrator re- Sector Loans’’ for the cost of guaranteed ‘‘(XI) covered worker protection expendi-
ceives a completed application submitted by loans as authorized under paragraph (38) of tures, as defined in such section 1106(a).’’.
a bank-owned, non-leveraged applicant in ac- section 7(a) of the Small Business Act (15 (2) LOAN FORGIVENESS.—Section 1106 of the
cordance with this subsection and in accord- U.S.C. 636(a)), as added by this section; and CARES Act (15 U.S.C. 9005) is amended—
ance with such requirements as the Adminis- (III) $10,000,000 under the heading under the (A) in subsection (a)—
trator may prescribe by regulation, the Ad- heading ‘‘Department of Commerce—Minor- (i) by redesignating paragraphs (6), (7), and
ministrator shall— ity Business Development Agency’’ for mi- (8) as paragraphs (10), (11), and (12), respec-
‘‘(i) review the application in its entirety; nority business centers of the Minority Busi- tively;
and ness Development Agency to provide tech- (ii) by redesignating paragraph (5) as para-
‘‘(ii)(I) approve the application and issue a nical assistance to small business concerns; graph (8);
license for such operation to the applicant if and (iii) by redesignating paragraph (4) as para-
the requirements of this section are satis- (ii) to remain available until September 30, graph (6);
fied; or 2023, $10,000,000,000 under the heading ‘‘Small (iv) by redesignating paragraph (3) as para-
‘‘(II) disapprove the application and notify Business Administration—SBIC’’ to carry graph (4);
the applicant in writing of the disapproval.’’. out part D of title III of the Small Business (v) by inserting after paragraph (2) the fol-
(3) ELECTRONIC SUBMISSIONS.—Part A of Investment Act of 1958 (15 U.S.C. 681 et seq.), lowing:
title III of the Small Business Investment as added by this section. ‘‘(3) the term ‘covered operations expendi-
Act of 1958 (15 U.S.C. 681 et seq.), as amended (C) AVAILABILITY OF AMOUNTS APPRO- ture’ means a payment for any business soft-
by paragraph (1) of this subsection, is amend- PRIATED FOR THE OFFICE OF INSPECTOR GEN-
ware or cloud computing service that facili-
ed by adding at the end the following: ERAL.—Section 1107(a)(3) of the CARES Act
tates business operations, product or service
‘‘SEC. 322. ELECTRONIC SUBMISSIONS. (15 U.S.C. 9006(a)(3)) is amended by striking
delivery, the processing, payment, or track-
‘‘The Administration shall permit any doc- ‘‘September 20, 2024’’ and inserting ‘‘ex-
ing of payroll expenses, human resources,
ument submitted under this title, or pursu- pended’’.
(x) EMERGENCY DESIGNATION.— sales and billing functions, or accounting or
ant to a regulation carrying out this title, to tracking of supplies, inventory, records and
be submitted electronically, including by (1) IN GENERAL.—The amounts provided
under this section are designated as an emer- expenses;’’;
permitting an electronic signature for any (vi) by inserting after paragraph (4), as so
signature that is required on such a docu- gency requirement pursuant to section 4(g)
of the Statutory Pay-As-You-Go Act of 2010 redesignated, the following:
ment.’’. ‘‘(5) the term ‘covered property damage
(w) COMMITMENT AUTHORITY AND APPRO- (2 U.S.C. 933(g)).
(2) DESIGNATION IN SENATE.—In the Senate, cost’ means a cost related to property dam-
PRIATIONS.— age and vandalism or looting due to public
(1) COMMITMENT AUTHORITY.— this section is designated as an emergency
requirement pursuant to section 4112(a) of H. disturbances that occurred during 2020 that
(A) CARES ACT AMENDMENTS.—Section was not covered by insurance or other com-
1102(b) of the CARES Act (Public Law 116– Con. Res. 71 (115th Congress), the concurrent
resolution on the budget for fiscal year 2018. pensation;’’;
136) is amended— (vii) by inserting after paragraph (6), as so
(i) in paragraph (1)— redesignated, the following:
SA 2506. Mr. RUBIO (for himself and
(I) in the paragraph heading, by inserting ‘‘(5) the term ‘covered supplier cost’ means
‘‘AND SECOND DRAW’’ after ‘‘PPP’’; Ms. COLLINS) submitted an amendment
intended to be proposed by him to the an expenditure made by an entity to a sup-
(II) by striking ‘‘August 8, 2020’’ and insert- plier of goods pursuant to a contract in ef-
ing ‘‘December 31, 2020’’; bill S. 178, to condemn gross human
fect before February 15, 2020 for the supply of
(III) by striking ‘‘paragraph (36)’’ and in- rights violations of ethnic Turkic Mus-
goods that are essential to the operations of
serting ‘‘paragraphs (36) and (37)’’; and lims in Xinjiang, and calling for an end the entity at the time at which the expendi-
(IV) by striking ‘‘$659,000,000,000’’ and in- to arbitrary detention, torture, and ture is made;’’;
serting ‘‘$748,990,000,000’’; and harassment of these communities in- (viii) by inserting after paragraph (8), as so
(ii) by amending paragraph (2) to read as side and outside China; which was or- redesignated, the following:
follows: dered to lie on the table; as follows: ‘‘(9) the term ‘covered worker protection
‘‘(B) OTHER 7(A) LOANS.—During fiscal year
At the appropriate place, insert the fol- expenditure’—
2020, the amount authorized for commit-
lowing: ‘‘(A) means an operating or a capital ex-
ments for section 7(a) of the Small Business
SEC. ll. SMALL BUSINESS RECOVERY. penditure that is required to facilitate the
Act (15 U.S.C. 636(a)) under the heading
(a) SHORT TITLE.—This section may be adaptation of the business activities of an
‘Small Business Administration—Business
cited as the ‘‘Continuing Small Business Re- entity to comply with requirements estab-
Loans Program Account’ in the Financial
covery and Paycheck Protection Program lished or guidance issued by the Department
Services and General Government Appropria-
Act’’. of Health and Human Services, the Centers
tions Act, 2020 (division C of Public Law 116– (b) DEFINITIONS.—In this section:
193) shall apply with respect to any commit- for Disease Control, or the Occupational
(1) ADMINISTRATION; ADMINISTRATOR.—The Safety and Health Administration during the
ments under such section 7(a) other than terms ‘‘Administration’’ and ‘‘Adminis-
under paragraphs (36), (37), and (38) of such period beginning on March 1, 2020 and ending
trator’’ mean the Small Business Adminis- December 31, 2020 related to the maintenance
section 7(a).’’. tration and the Administrator thereof, re-
(B) RECOVERY SECTOR LOANS.—During the of standards for sanitation, social
spectively. distancing, or any other worker or customer
period beginning on the date of enactment of (2) SMALL BUSINESS CONCERN.—The term
this Act and ending on December 31, 2020, the safety requirement related to COVID–19;
‘‘small business concern’’ has the meaning ‘‘(B) may include—
amount authorized for commitments under given the term in section 3 of the Small
paragraph (38) of section 7(a) of the Small ‘‘(i) the purchase, maintenance, or renova-
Business Act (15 U.S.C. 632). tion of assets that create or expand—
Business Act (15 U.S.C. 636(a)), as added by (c) EMERGENCY RULEMAKING AUTHORITY.—
this section, shall be $100,000,000,000. ‘‘(I) a drive-through window facility;
Not later than 30 days after the date of en-
(2) DIRECT APPROPRIATIONS.— ‘‘(II) an indoor, outdoor, or combined air or
actment of this Act, the Administrator shall
(A) RESCISSION.—With respect to unobli- air pressure ventilation or filtration system;
issue regulations to carry out this section
gated balances under the heading ‘‘ ‘Small and the amendments made by this section ‘‘(III) a physical barrier such as a sneeze
Business Administration—Business Loans without regard to the notice requirements guard;
Program Account, CARES Act’’ as of the day under section 553(b) of title 5, United States ‘‘(IV) an indoor, outdoor, or combined com-
before the date of enactment of this Act, Code. mercial real property;
$100,000,000,000 shall be rescinded and depos- (d) ADDITIONAL ELIGIBLE EXPENSES.— ‘‘(V) an onsite or offsite health screening
ited into the general fund of the Treasury. (1) ALLOWABLE USE OF PPP LOAN.—Section capability; or
(B) NEW DIRECT APPROPRIATIONS.—There is 7(a)(36)(F)(i) of the Small Business Act (15 ‘‘(VI) other assets relating to the compli-
appropriated, out of amounts in the Treas- U.S.C. 636(a)(36)(F)(i)) is amended— ance with the requirements or guidance de-
ury not otherwise appropriated, for the fiscal (A) in subclause (VI), by striking ‘‘and’’ at scribed in subparagraph (A), as determined
year ending September 30, 2020— the end; by the Administrator in consultation with
(i) to remain available until September 30, (B) in subclause (VII), by striking the pe- the Secretary of Health and Human Services
2021, for additional amounts— riod at the end and inserting a semicolon; and the Secretary of Labor; and
(I) $189,990,000,000 under the heading and ‘‘(ii) the purchase of—
SSpencer on DSK126QN23PROD with SENATE
‘‘Small Business Administration—Business (C) by adding at the end the following: ‘‘(I) covered materials described in section
Loans Program Account, CARES Act’’ for ‘‘(VIII) covered operations expenditures, as 328.103(a) of title 44, Code of Federal Regula-
the cost of guaranteed loans as authorized defined in section 1106(a) of the CARES Act tions, or any successor regulation;
under paragraph (36) and (37) of section 7(a) (15 U.S.C. 9005(a)); ‘‘(II) particulate filtering facepiece res-
of the Small Business Act (15 U.S.C. 636(a)), ‘‘(IX) covered property damage costs, as pirators approved by the National Institute
as amended and added by this section; defined in such section 1106(a); for Occupational Safety and Health, includ-
(II) $57,700,000,000 under the heading ‘‘(X) covered supplier costs, as defined in ing those approved only for emergency use
‘‘Small Business Administration—Recovery such section 1106(a); and authorization; or
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S4746 CONGRESSIONAL RECORD — SENATE August 4, 2020
‘‘(III) other kinds of personal protective ‘‘(i) beginning on the date that is 8 weeks ble loan or loan forgiveness requirements,
equipment, as determined by the Adminis- after such date of origination; and modify—
trator in consultation with the Secretary of ‘‘(ii) ending on December 31, 2020;’’; and ‘‘(I) the amount of a covered loan described
Health and Human Services and the Sec- (2) by striking subsection (l). in subparagraph (A); or
retary of Labor; and (g) SIMPLIFIED APPLICATION.—Section 1106 ‘‘(II) the loan forgiveness amount with re-
‘‘(C) does not include residential real prop- of the CARES Act (15 U.S.C. 9005), as amend- spect to a covered loan described in subpara-
erty or intangible property;’’; and ed by subsection (f) of this section, is amend- graph (A).
(ix) in paragraph (11), as so redesignated— ed— ‘‘(3) AUDIT PLAN.—
(I) in subparagraph (C), by striking ‘‘and’’ (1) in subsection (e), in the matter pre- ‘‘(A) IN GENERAL.—Not later than 30 days
at the end; ceding paragraph (1), by striking ‘‘An eligi- after the date of enactment of the Con-
(II) in subparagraph (D), by striking ‘‘and’’ ble’’ and inserting ‘‘Except as provided in tinuing Small Business Recovery and Pay-
at the end; and subsection (l), an eligible’’; check Protection Program Act, the Adminis-
(III) by adding at the end the following: (2) in subsection (f), by inserting ‘‘or the trator shall submit to the Committee on
‘‘(E) covered operations expenditures; information required under subsection (l), as Small Business and Entrepreneurship of the
‘‘(F) covered property damage costs; applicable’’ after ‘‘subsection (e)’’; and Senate and the Committee on Small Busi-
‘‘(G) covered supplier costs; and (3) by adding at the end the following: ness of the House of Representatives an
‘‘(H) covered worker protection expendi- ‘‘(l) SIMPLIFIED APPLICATION.— audit plan that details—
tures; and’’; ‘‘(1) COVERED LOANS UNDER $150,000.— ‘‘(i) the policies and procedures of the Ad-
(B) in subsection (b), by adding at the end ‘‘(A) IN GENERAL.—Notwithstanding sub- ministrator for conducting reviews and au-
the following: section (e), with respect to a covered loan dits of covered loans; and
‘‘(5) Any covered operations expenditure. made to an eligible recipient that is not ‘‘(ii) the metrics that the Administrator
‘‘(6) Any covered property damage cost. more than $150,000, the covered loan amount shall use to determine which covered loans
‘‘(7) Any covered supplier cost. shall be forgiven under this section if the eli- will be audited for each category of covered
‘‘(8) Any covered worker protection ex- gible recipient— loans described in paragraphs (1) and (2).
penditure.’’; ‘‘(i) signs and submits to the lender an at- ‘‘(B) REPORTS.—Not later than 30 days
(C) in subsection (d)(8), by inserting ‘‘any testation that the eligible recipient made a after the date on which the Administrator
payment on any covered operations expendi- good faith effort to comply with the require- submits the audit plan required under sub-
ture, any payment on any covered property ments under section 7(a)(36) of the Small paragraph (A), and each month thereafter,
damage cost, any payment on any covered Business Act (15 U.S.C. 636(a)(36)); and the Administrator shall submit to the Com-
supplier cost, any payment on any covered ‘‘(ii) for the 1-year period following sub- mittee on Small Business and Entrepreneur-
worker protection expenditure,’’ after ‘‘rent mission of the attestation under clause (i), ship of the Senate and the Committee on
obligation,’’; and retains records relevant to the attestation Small Business of the House of Representa-
(D) in subsection (e)— that prove compliance with those require- tives a report on the review and audit activi-
(i) in paragraph (2), by inserting ‘‘pay- ments. ties of the Administrator under this sub-
ments on covered operations expenditures, ‘‘(B) DEMOGRAPHIC INFORMATION.—An eligi- section, which shall include—
payments on covered property damage costs, ble recipient of a covered loan described in ‘‘(i) the number of active reviews and au-
payments on covered supplier costs, pay- subparagraph (A) may complete and submit dits;
ments on covered worker protection expendi- any form related to borrower demographic ‘‘(ii) the number of reviews and audits that
tures,’’ after ‘‘lease obligations,’’; and information. have been ongoing for more than 60 days; and
(ii) in paragraph (3)(B), by inserting ‘‘make ‘‘(C) AUDIT.—The Administrator may— ‘‘(iii) any substantial changes made to the
payments on covered operations expendi- ‘‘(i) review and audit covered loans de- audit plan submitted under subparagraph
tures, make payments on covered property scribed in subparagraph (A); and (A).’’.
damage costs, make payments on covered ‘‘(ii) in the case of fraud, ineligibility, or (h) GROUP INSURANCE PAYMENTS AS PAY-
supplier costs, make payments on covered other material noncompliance with applica- ROLL COSTS.—Section
worker protection expenditures,’’ after ‘‘rent ble loan or loan forgiveness requirements, 7(a)(36)(A)(viii)(I)(aa)(EE) of the Small Busi-
obligation,’’. modify— ness Act (15 U.S.C.
(e) LENDER SAFE HARBOR.—Subsection (h) ‘‘(I) the amount of a covered loan described 636(a)(36)(A)(viii)(I)(aa)(EE)) is amended by
of section 1106 of the CARES Act (15 U.S.C. in subparagraph (A); or inserting ‘‘and other group insurance’’ before
9005) is amended to read as follows: ‘‘(II) the loan forgiveness amount with re- ‘‘benefits’’.
‘‘(h) HOLD HARMLESS.— spect to a covered loan described in subpara- (i) PAYCHECK PROTECTION PROGRAM SECOND
‘‘(1) IN GENERAL.—A lender may rely on graph (A). DRAW LOANS.—Section 7(a) of the Small
any certification or documentation sub- ‘‘(2) COVERED LOANS BETWEEN $150,000 AND Business Act (15 U.S.C. 636(a)) is amended by
mitted by an applicant for a covered loan or $2,000,000.— adding at the end the following:
an eligible recipient of a covered loan that— ‘‘(A) IN GENERAL.—Notwithstanding sub- ‘‘(37) PAYCHECK PROTECTION PROGRAM SEC-
‘‘(A) is submitted pursuant to any statu- section (e), with respect to a covered loan OND DRAW LOANS.—
tory requirement relating to covered loans made to an eligible recipient that is more ‘‘(A) DEFINITIONS.—In this paragraph—
or any rule or guidance issued to carry out than $150,000 and not more than $2,000,000— ‘‘(i) the terms ‘community financial insti-
any action relating to covered loans; and ‘‘(i) the eligible recipient seeking loan for- tutions’, ‘credit union’, ‘eligible self-em-
‘‘(B) attests that the applicant or eligible giveness under this section— ployed individual’, ‘insured depository insti-
recipient, as applicable, has accurately ‘‘(I) is not required to submit the sup- tution’, ‘nonprofit organization’, ‘payroll
verified any certification or documentation porting documentation described in para- costs’, ‘seasonal employer’, and ‘veterans or-
provided to the lender. graph (1) or (2) of subsection (e) or the cer- ganization’ have the meanings given those
‘‘(2) NO ENFORCEMENT ACTION.—With re- tification described in subsection (e)(3)(A); terms in paragraph (36), except that ‘eligible
spect to a lender that relies on a certifi- ‘‘(II) shall retain all relevant schedules, entity’ shall be substituted for ‘eligible re-
cation or documentation described in para- worksheets, and supporting documentation cipient’ each place it appears in the defini-
graph (1)— for the 3-year period following submission of tions of those terms;
‘‘(A) an enforcement action may not be the application for loan forgiveness; and ‘‘(ii) the term ‘covered loan’ means a loan
taken against the lender acting in good faith ‘‘(III) may complete and submit any form made under this paragraph;
relating to origination or forgiveness of a related to borrower demographic informa- ‘‘(iii) the terms ‘covered mortgage obliga-
covered loan based on such reliance; and tion; tion’, ‘covered operating expenditure’, ‘cov-
‘‘(B) the lender acting in good faith shall ‘‘(ii) review by the lender of an application ered property damage cost’, ‘covered rent ob-
not be subject to any penalties relating to submitted by the eligible recipient for loan ligation’, ‘covered supplier cost’, ‘covered
origination or forgiveness of a covered loan forgiveness under this section shall be lim- utility payment’, and ‘covered worker pro-
based on such reliance.’’. ited to whether the lender received a com- tection expenditure’ have the meanings
(f) SELECTION OF COVERED PERIOD FOR FOR- plete application, with all fields completed, given those terms in section 1106(a) of the
GIVENESS.—Section 1106 of the CARES Act initialed, or signed, as applicable; and CARES Act (15 U.S.C. 9005(a));
(15 U.S.C. 9005) is amended— ‘‘(iii) the lender shall— ‘‘(iv) the term ‘covered period’ means the
(1) by amending paragraph (4) of subsection ‘‘(I) accept the application submitted by period beginning on the date of the origina-
(a), as so redesignated by subsection (d) of the eligible recipient for loan forgiveness tion of a covered loan and ending on Decem-
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this section, to read as follows: under this section; and ber 31, 2020;
‘‘(4) the term ‘covered period’ means the ‘‘(II) submit the application to the Admin- ‘‘(v) the term ‘eligible entity’—
period— istrator. ‘‘(I) means any business concern, nonprofit
‘‘(A) beginning on the date of the origina- ‘‘(B) AUDIT.—The Administrator may— organization, veterans organization, Tribal
tion of a covered loan; and ‘‘(i) review and audit covered loans de- business concern, eligible self-employed indi-
‘‘(B) ending on a date selected by the eligi- scribed in subparagraph (A); and vidual, sole proprietor, independent con-
ble recipient of the covered loan that occurs ‘‘(ii) in the case of fraud, ineligibility, or tractor, or small agricultural cooperative
during the period— other material noncompliance with applica- that—
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4747
‘‘(aa)(AA) with respect to a business con- ance or rule issued or that may be issued by ‘‘(I) the product obtained by multiplying—
cern, would qualify as a small business con- the Administrator; ‘‘(aa) at the election of the eligible entity,
cern by the annual receipts size standard (if ‘‘(EE) is a type of business concern de- the average total monthly payments for pay-
applicable) established by section 121.201 of scribed in section 120.110(n) of title 13, Code roll costs incurred or paid by the eligible en-
title 13, Code of Federal Regulations, or any of Federal Regulations, or any successor reg- tity—
successor regulation; or ulation, except as otherwise provided in the ‘‘(AA) for a 12-week period beginning Feb-
‘‘(BB) if the entity does not qualify as a interim final rule of the Administration en- ruary 15, 2019 or March 1, 2019 and ending
small business concern, meets the alter- titled ‘Business Loan Program Temporary June 30, 2019; or
native size standard established under sec- Changes; Paycheck Protection Program—Ad- ‘‘(BB) for a consecutive 12-week period be-
tion 3(a)(5); ditional Eligibility Revisions to First In- tween May 1, 2019 and September 15, 2019; by
‘‘(bb) employs not more than 300 employ- terim Final Rule’ (85 Fed. Reg. 38301 (June ‘‘(bb) 2.5; or
ees; and 26, 2020)) or any other guidance or rule issued ‘‘(II) $2,000,000.
‘‘(cc)(AA) except as provided in subitems or that may be issued by the Administrator; ‘‘(iii) NEW ENTITIES.—The maximum
(BB), (CC), and (DD), had gross receipts dur- ‘‘(FF) is a type of business concern de- amount of a covered loan made to an eligible
ing the first or second quarter in 2020 that scribed in section 120.110(o) of title 13, Code entity that did not exist during the 1-year
are not less than 35 percent less than the of Federal Regulations, or any successor reg- period preceding February 15, 2020 is the less-
gross receipts of the entity during the same ulation, except as otherwise provided in any er of—
quarter in 2019; guidance or rule issued or that may be issued ‘‘(I) the product obtained by multiplying—
by the Administrator; or ‘‘(aa) the quotient obtained by dividing—
‘‘(BB) if the entity was not in business dur-
‘‘(GG) is an entity that is organized for re- ‘‘(AA) the sum of the total monthly pay-
ing the first or second quarter of 2019, but
search or for engaging in advocacy in areas ments by the eligible entity for payroll costs
was in business during the third and fourth
such as public policy or political strategy or paid or incurred by the eligible entity as of
quarter of 2019, had gross receipts during the
otherwise describes itself as a think tank in the date on which the eligible entity applies
first or second quarter of 2020 that are less
any public documents; for the covered loan; by
than 35 percent of the amount of the gross
‘‘(HH) is an entity that would be described ‘‘(BB) the number of months in which
receipts of the entity during the third or
in the subsections listed in subitems (AA) those payroll costs were paid or incurred; by
fourth quarter of 2019; through (GG) if the entity were a business ‘‘(bb) 2.5; or
‘‘(CC) if the entity was not in business dur- concern; or ‘‘(II) $2,000,000.
ing the first, second, or third quarter of 2019, ‘‘(II) is assigned, or was approved for a loan ‘‘(iv) LIMIT FOR MULTIPLE LOCATIONS.—With
but was in business during the fourth quarter under paragraph (36) with, a North American respect to an eligible entity with more than
of 2019, had gross receipts during the first or Industry Classification System code begin- 1 physical location, the total amount of all
second quarter of 2020 that are less than 35 ning with 52; covered loans shall be not more than
percent of the amount of the gross receipts ‘‘(cc) any business concern or entity pri- $2,000,000.
of the entity during the fourth quarter of marily engaged in political or lobbying ac- ‘‘(v) LOAN NUMBER LIMITATION.—An eligible
2019; or tivities, which shall include any entity that entity may only receive 1 covered loan.
‘‘(DD) if the entity was not in business dur- is organized for research or for engaging in ‘‘(vi) 90 DAY RULE FOR MAXIMUM LOAN
ing 2019, but was in operation on February advocacy in areas such as public policy or AMOUNT.—The maximum aggregate loan
15, 2020, had gross receipts during the second political strategy or otherwise describes amount of loans guaranteed under this sub-
quarter of 2020 that are less than 35 percent itself as a think tank in any public docu- section that are approved for an eligible en-
of the amount of the gross receipts of the en- ments; or tity (including any affiliates) within 90 days
tity during the first quarter of 2020; ‘‘(dd) any business concern or entity— of approval of another loan under this sub-
‘‘(II) includes an organization described in ‘‘(AA) for which an entity created in or or- section for the eligible entity (including any
subparagraph (D)(vii) of paragraph (36) that ganized under the laws of the People’s Re- affiliates) shall not exceed $10,000,000.
is eligible to receive a loan under that para- public of China or the Special Administra- ‘‘(D) EXCEPTION FROM CERTAIN CERTIFI-
graph and that meets the requirements de- tive Region of Hong Kong, or that has sig- CATION REQUIREMENTS.—An eligible entity
scribed in items (aa) and (cc) of subclause (I); nificant operations in the People’s Republic applying for a covered loan shall not be re-
and of China or the Special Administrative Re- quired to make the certification described in
‘‘(III) does not include— gion of Hong Kong, owns or holds, directly or subclause (III) or (IV) of paragraph (36)(G)(i).
‘‘(aa) an issuer, the securities of which are indirectly, not less than 20 percent of the ‘‘(E) FEE WAIVER.—With respect to a cov-
listed on an exchange registered a national economic interest of the business concern or ered loan—
securities exchange under section 6 of the entity, including as equity shares or a cap- ‘‘(i) in lieu of the fee otherwise applicable
Securities Exchange Act of 1934 (15 U.S.C. ital or profit interest in a limited liability under paragraph (23)(A), the Administrator
78f); company or partnership; or shall collect no fee; and
‘‘(bb) any entity that— ‘‘(BB) that retains, as a member of the ‘‘(ii) in lieu of the fee otherwise applicable
‘‘(AA) is a type of business concern de- board of directors of the business concern, a under paragraph (18)(A), the Administrator
scribed in subsection (b), (c), (d), (e), (f), (h), person who is a resident of the People’s Re- shall collect no fee.
(l) (m), (p), (q), (r), or (s) of section 120.110 of public of China; ‘‘(F) ELIGIBLE CHURCHES AND RELIGIOUS OR-
title 13, Code of Federal Regulations, or any ‘‘(vi) the terms ‘exchange’, ‘issuer’, and ‘se- GANIZATIONS.—
successor regulation; curity’ have the meanings given those terms ‘‘(i) SENSE OF CONGRESS.—It is the sense of
‘‘(BB) is a type of business concern de- in section 3(a) of the Securities Exchange Congress that the interim final rule of the
scribed in section 120.110(g) of title 13, Code Act of 1934 (15 U.S.C. 78c(a)); and Administration entitled ‘Business Loan Pro-
of Federal Regulations, or any successor reg- ‘‘(vii) the term ‘Tribal business concern’ gram Temporary Changes; Paycheck Protec-
ulation, except as otherwise provided in the means a Tribal business concern described in tion Program’ (85 Fed. Reg. 20817 (April 15,
interim final rule of the Administration en- section 31(b)(2)(C). 2020)) properly clarified the eligibility of
titled ‘Business Loan Program Temporary ‘‘(B) LOANS.—Except as otherwise provided churches and religious organizations for
Changes; Paycheck Protection Program—Ad- in this paragraph, the Administrator may loans made under paragraph (36).
ditional Eligibility Criteria and Require- guarantee covered loans to eligible entities ‘‘(ii) APPLICABILITY OF PROHIBITION.—The
ments for Certain Pledges of Loans’ (85 Fed. under the same terms, conditions, and proc- prohibition on eligibility established by sec-
Reg. 21747 (April 20, 2020)); esses as a loan made under paragraph (36). tion 120.110(k) of title 13, Code of Federal
‘‘(CC) is a type of business concern de- ‘‘(C) MAXIMUM LOAN AMOUNT.— Regulations, or any successor regulation,
scribed in section 120.110(i) of title 13, Code of ‘‘(i) IN GENERAL.—Except as otherwise pro- shall not apply to a covered loan.
Federal Regulations, or any successor regu- vided in this subparagraph, the maximum ‘‘(G) GROSS RECEIPTS FOR NONPROFIT AND
lation, except if the business concern is an amount of a covered loan made to an eligible VETERANS ORGANIZATIONS.—For purposes of
organization described in paragraph entity is the lesser of— calculating gross receipts under subpara-
(36)(D)(vii); ‘‘(I) the product obtained by multiplying— graph (A)(v)(I)(cc) for an eligible entity that
‘‘(DD) is a type of business concern de- ‘‘(aa) at the election of the eligible entity, is a nonprofit organization, a veterans orga-
scribed in section 120.110(j) of title 13, Code of the average total monthly payment for pay- nization, or an organization described in sub-
Federal Regulations, or any successor regu- roll costs incurred or paid by the eligible en- paragraph (A)(v)(II), gross receipts—
lation, except as otherwise provided in the tity during— ‘‘(i) shall include proceeds from fund-
interim final rules of the Administration en- ‘‘(AA) the 1-year period before the date on raising events, federated campaigns, gifts,
SSpencer on DSK126QN23PROD with SENATE
titled ‘Business Loan Program Temporary which the loan is made; or donor-advised funds, and funds from similar
Changes; Paycheck Protection Program— ‘‘(BB) calendar year 2019; by sources; and
Eligibility of Certain Electric Cooperatives’ ‘‘(bb) 2.5; or ‘‘(ii) shall not include—
(85 Fed. Reg. 29847 (May 19, 2020)) and ‘Busi- ‘‘(II) $2,000,000. ‘‘(I) Federal grants (excluding any loan for-
ness Loan Program Temporary Changes; ‘‘(ii) SEASONAL EMPLOYERS.—The maximum giveness on loans received under paragraph
Paycheck Protection Program—Eligibility amount of a covered loan made to an eligible (36) or this paragraph);
of Certain Telephone Cooperatives’ (85 Fed. entity that is a seasonal employer is the ‘‘(II) revenues from a supporting organiza-
Reg. 35550 (June 11, 2020)) or any other guid- lesser of— tion;
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S4748 CONGRESSIONAL RECORD — SENATE August 4, 2020
‘‘(III) grants from private foundations that ing the Federal Agricultural Mortgage Cor- ‘‘(T) CALCULATION OF MAXIMUM LOAN
are disbursed over the course of more than 1 poration). AMOUNT FOR FARMERS AND RANCHERS.—
calendar year; or ‘‘(M) PUBLICATION OF GUIDANCE.—Not later ‘‘(i) DEFINITION.—In this subparagraph, the
‘‘(IV) any contribution of property other than 10 days after the date of enactment of term ‘covered recipient’ means an eligible
than money, stocks, bonds, and other securi- this paragraph, the Administrator shall issue recipient that—
ties, provided that the non-cash contribution guidance addressing barriers to accessing ‘‘(I) operates as a sole proprietorship or as
is not sold by the organization in a trans- capital for minority, underserved, veteran, an independent contractor, or is an eligible
action unrelated to the tax-exempt purpose and women-owned business concerns for the self-employed individual;
of the organization. purpose of ensuring equitable access to cov- ‘‘(II) reports farm income or expenses on a
‘‘(H) LOAN FORGIVENESS.— ered loans. Schedule F (or any equivalent successor
‘‘(i) IN GENERAL.—Except as otherwise pro- ‘‘(N) STANDARD OPERATING PROCEDURE.— schedule); and
vided in this subparagraph, an eligible entity The Administrator shall, to the maximum ‘‘(III) was in business during the period be-
shall be eligible for forgiveness of indebted- extent practicable, allow a lender approved ginning on February 15, 2019 and ending on
ness on a covered loan in the same manner to make covered loans to use existing pro- June 30, 2019.
as an eligible recipient with respect to a loan gram guidance and standard operating proce- ‘‘(ii) NO EMPLOYEES.—With respect to cov-
made under paragraph (36), as described in dures for loans made under this subsection. ered recipient without employees, the max-
section 1106 of the CARES Act (15 U.S.C. ‘‘(O) PROHIBITION ON USE OF PROCEEDS FOR imum covered loan amount shall be the less-
9005). LOBBYING ACTIVITIES.—None of the proceeds er of—
‘‘(ii) FORGIVENESS AMOUNT.—An eligible en- of a covered loan may be used for— ‘‘(I) the sum of—
tity shall be eligible for forgiveness of in- ‘‘(i) lobbying activities, as defined in sec- ‘‘(aa) the product obtained by multi-
debtedness on a covered loan in an amount tion 3 of the Lobbying Disclosure Act of 1995 plying—
equal to the sum of the following costs in- (2 U.S.C. 1602); ‘‘(AA) the gross income of the covered re-
curred or expenditures made during the cov- ‘‘(ii) lobbying expenditures related to a cipient in 2019, as reported on a Schedule F
ered period: State or local election; or (or any equivalent successor schedule), that
‘‘(I) Payroll costs. ‘‘(iii) expenditures designed to influence is not more than $100,000, divided by 12; and
‘‘(II) Any payment of interest on any cov- the enactment of legislation, appropriations, ‘‘(BB) 2.5; and
ered mortgage obligation (which shall not in- regulation, administrative action, or Execu- ‘‘(bb) the outstanding amount of a loan
clude any prepayment of or payment of prin- tive order proposed or pending before Con- under subsection (b)(2) that was made during
cipal on a covered mortgage obligation). gress or any State government, State legis- the period beginning on January 31, 2020 and
‘‘(III) Any covered operations expenditure. lature, or local legislature or legislative ending on April 3, 2020 that the borrower in-
‘‘(IV) Any covered property damage cost. body.’’. tends to refinance under the covered loan,
‘‘(V) Any payment on any covered rent ob- (j) CONTINUED ACCESS TO THE PAYCHECK not including any amount of any advance
ligation. PROTECTION PROGRAM.— under the loan that is not required to be re-
‘‘(VI) Any covered utility payment. (1) IN GENERAL.—Section 7(a)(36)(E)(ii) of paid; or
‘‘(VII) Any covered supplier cost. the Small Business Act (15 U.S.C. ‘‘(II) $2,000,000.
‘‘(VIII) Any covered worker protection ex- 636(a)(36)(E)(ii)) is amended by striking ‘‘(iii) WITH EMPLOYEES.—With respect to a
penditure. ‘‘$10,000,000’’ and inserting ‘‘$2,000,000’’. covered recipient with employees, the max-
‘‘(iii) LIMITATION ON FORGIVENESS FOR ALL (2) APPLICABILITY OF MAXIMUM LOAN imum covered loan amount shall be cal-
ELIGIBLE ENTITIES.—The forgiveness amount AMOUNT CALCULATION.— culated using the formula described in sub-
under this subparagraph shall be equal to the (A) DEFINITIONS.—In this paragraph, the paragraph (E), except that the gross income
lesser of— terms ‘‘covered loan’’ and ‘‘eligible recipi- of the covered recipient described in clause
‘‘(I) the amount described in clause (ii); ent’’ have the meanings given those terms in (ii)(I)(aa)(AA) of this subparagraph, as di-
and section 7(a)(36) of the Small Business Act (15 vided by 12, shall be added to the sum cal-
‘‘(II) the amount equal to the quotient ob- U.S.C. 636(a)(36)). culated under subparagraph (E)(i)(I).
tained by dividing— (B) APPLICABILITY.—The amendment made ‘‘(iv) RECALCULATION.—A lender that made
‘‘(aa) the amount of the covered loan used by paragraph (1) shall apply only with re- a covered loan to a covered recipient before
for payroll costs during the covered period; spect to a covered loan applied for by an eli- the date of enactment of this subparagraph
and gible recipient on or after the date of enact- may, at the request of the covered recipi-
‘‘(bb) 0.60. ment of this Act. ent—
‘‘(I) LENDER ELIGIBILITY.—Except as other- (k) INCREASED ABILITY FOR PAYCHECK PRO- ‘‘(I) recalculate the maximum loan amount
wise provided in this paragraph, a lender ap- TECTION PROGRAM BORROWERS TO REQUEST AN applicable to that covered loan based on the
proved to make loans under paragraph (36) INCREASE IN LOAN AMOUNT DUE TO UPDATED formula described in clause (ii) or (iii), as ap-
may make covered loans under the same REGULATIONS.— plicable, if doing so would result in a larger
terms and conditions as in paragraph (36). (1) DEFINITIONS.—In this subsection, the covered loan amount; and
‘‘(J) REIMBURSEMENT FOR LOAN PROCESSING terms ‘‘covered loan’’ and ‘‘eligible recipi- ‘‘(II) provide the covered recipient with ad-
AND SERVICING.—The Administrator shall re- ent’’ have the meanings given those terms in ditional covered loan amounts based on that
imburse a lender authorized to make a cov- section 7(a)(36) of the Small Business Act (15 recalculation.’’.
ered loan in an amount that is— U.S.C. 636(a)(36)). (m) FARM CREDIT SYSTEM INSTITUTIONS.—
‘‘(i) 3 percent of the principal amount of (2) INCREASED AMOUNT.—Notwithstanding (1) DEFINITION OF FARM CREDIT SYSTEM IN-
the financing of the covered loan up to the interim final rule issued by the Adminis- STITUTION.—In this subsection, the term
$350,000; and tration entitled ‘‘Business Loan Program ‘‘Farm Credit System institution’’—
‘‘(ii) 1 percent of the principal amount of Temporary Changes; Paycheck Protection (A) means an institution of the Farm Cred-
the financing of the covered loan above Program—Loan Increases’’ (85 Fed. Reg. it System chartered under the Farm Credit
$350,000, if applicable. 29842 (May 19, 2020)), an eligible recipient of Act of 1971 (12 U.S.C. 2001 et seq.); and
‘‘(K) SET ASIDE FOR SMALL ENTITIES.—Not a covered loan that is eligible for an in- (B) does not include the Federal Agricul-
less than $25,000,000,000 of the total amount creased covered loan amount as a result of tural Mortgage Corporation.
of covered loans guaranteed by the Adminis- any interim final rule that allows for cov- (2) FACILITATION OF PARTICIPATION IN PPP
trator shall be made to eligible entities with ered loan increases may submit a request for AND SECOND DRAW LOANS.—
not more than 10 employees as of February an increase in the covered loan amount even (A) APPLICABLE RULES.—Solely with re-
15, 2020. if— spect to loans under paragraphs (36) and (37)
‘‘(L) SET ASIDE FOR COMMUNITY FINANCIAL (A) the initial covered loan amount has of section 7(a) of the Small Business Act (15
INSTITUTIONS, SMALL INSURED DEPOSITORY IN- been fully disbursed; or U.S.C. 636(a)), Farm Credit Administration
STITUTIONS, CREDIT UNIONS, AND FARM CREDIT (B) the lender of the initial covered loan regulations and guidance issued as of July
SYSTEM INSTITUTIONS.—Not less than has submitted to the Administration a Form 14, 2020, and compliance with such regula-
$10,000,000,000 of the total amount of covered 1502 report related to the covered loan. tions and guidance, shall be deemed func-
loans guaranteed by the Administrator shall (l) CALCULATION OF MAXIMUM LOAN AMOUNT tionally equivalent to requirements ref-
be made by— FOR FARMERS AND RANCHERS UNDER THE PAY- erenced in section 3(a)(iii)(II) of the interim
‘‘(i) community financial institutions; CHECK PROTECTION PROGRAM.— final rule of the Administration entitled
‘‘(ii) insured depository institutions with (1) IN GENERAL.—Section 7(a)(36) of the ‘‘Business Loan Program Temporary
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consolidated assets of less than Small Business Act (15 U.S.C. 636(a)(36)), as Changes; Paycheck Protection Program’’ (85
$10,000,000,000; amended by subsection (j) of this section, is Fed. Reg. 20811 (April 15, 2020)) or any similar
‘‘(iii) credit unions with consolidated as- amended— requirement referenced in that interim final
sets of less than $10,000,000,000; and (A) in subparagraph (E), in the matter pre- rule in implementing such paragraph (37).
‘‘(iv) institutions of the Farm Credit Sys- ceding clause (i), by striking ‘‘During’’ and (B) APPLICABILITY OF CERTAIN LOAN RE-
tem chartered under the Farm Credit Act of inserting ‘‘Except as provided in subpara- QUIREMENTS.—For purposes of making loans
1971 (12 U.S.C. 2001 et seq.) with consolidated graph (T), during’’; and under paragraph (36) or (37) of section 7(a) of
assets of less than $10,000,000,000 (not includ- (B) by adding at the end the following: the Small Business Act (15 U.S.C. 636(a)) or
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4749
forgiving those loans in accordance with sec- those terms in section 7(a)(36) of the Small ‘‘(bb) any entity that received a loan under
tion 1106 of the CARES Act (15 U.S.C. 9005) Business Act (15 U.S.C. 636(a)(36)).’’. paragraph (37); or
and subparagraph (H) of such paragraph (37), (o) CHANGES TO THE 7(A) LOAN GUARANTY ‘‘(cc) any entity that received a loan under
sections 4.13, 4.14, and 4.14A of the Farm PROGRAM FOR RECOVERY SECTOR BUSINESS paragraph (36) after the date of enactment of
Credit Act of 1971 (12 U.S.C. 2199, 2202, 2202a) CONCERNS.—Section 7(a) of the Small Busi- this paragraph; and
(including regulations issued under those ness Act (15 U.S.C. 636(a)), as amended by ‘‘(v) the term ‘small business low-income
sections) shall not apply. subsection (i) of this section, is amended by census tract’—
(C) RISK WEIGHT.— adding at the end the following: ‘‘(I) means—
(i) IN GENERAL.—With respect to the appli- ‘‘(38) RECOVERY SECTOR LOANS.— ‘‘(aa) a covered population census tract for
cation of Farm Credit Administration cap- ‘‘(A) DEFINITIONS.—In this paragraph— which the poverty rate is not less than 20
ital requirements, a loan described in clause ‘‘(i) the term ‘covered loan’ means a loan percent; or
(ii)— made under this paragraph; ‘‘(bb) an area—
(I) shall receive a risk weight of zero per- ‘‘(ii) the term ‘covered population census ‘‘(AA) that is not tracted as a population
cent; and tract’ means a population census tract for census tract;
(II) shall not be included in the calculation which— ‘‘(BB) for which the poverty rate in the
of any applicable leverage ratio or other ap- ‘‘(I) in the case of a tract that is not lo- equivalent county division (as defined by the
plicable capital ratio or calculation. cated within a metropolitan area, the me- Bureau of the Census) is not less than 20 per-
(ii) LOANS DESCRIBED.—A loan referred to dian income does not exceed 80 percent of the cent; and
in clause (i) is— statewide (or, with respect to a possession or ‘‘(CC) for which the median income in the
(I) a loan made by a Farm Credit Bank de- territory of the United States, the equivalent county division (as defined by the
scribed in section 1.2(a) of the Farm Credit possession- or territory-wide) median family Bureau of the Census) does not exceed 80 per-
Act of 1971 (12 U.S.C. 2002(a)) to a Federal income; or cent of the statewide (or, with respect to a
Land Bank Association, a Production Credit ‘‘(II) in the case of a tract that is located possession or territory of the United States,
Association, or an agricultural credit asso- within a metropolitan area, the median fam- the possession- or territory-wide) median in-
ciation described in that section to make ily income does not exceed 80 percent of the come; and
loans under paragraph (36) or (37) of section greater of the statewide (or, with respect to ‘‘(II) does not include any area or popu-
7(a) of the Small Business Act (15 U.S.C. a possession or territory of the United lation census tract with a median family in-
636(a)) or forgive those loans in accordance States, the possession- or territory-wide) me- come that is not less than 120 percent of the
with section 1106 of the CARES Act (15 dian family income and the metropolitan median family income in the United States,
U.S.C. 9005) and subparagraph (H) of such area median family income; according to the most recent American Com-
paragraph (37); or ‘‘(iii) the term ‘covered seasonal employer’ munities Survey data from the Bureau of the
(II) a loan made by a Federal Land Bank means a small business concern that— Census.
Association, a Production Credit Associa- ‘‘(I) is a seasonal employer, as defined in ‘‘(B) LOANS.—Except as otherwise provided
tion, an agricultural credit association, or paragraph (36); and in this paragraph, the Administrator may
the bank for cooperatives described in sec- ‘‘(II) during the preceding calendar year— guarantee covered loans made to eligible en-
tion 1.2(a) of the Farm Credit Act of 1971 (12 ‘‘(aa) had gross receipts as described in tities—
U.S.C. 2002(a)) under paragraph (36) or (37) of paragraph (36)(A)(xiii)(II); and ‘‘(i) under the same terms, conditions, and
section 7(a) of the Small Business Act (15 ‘‘(bb) employed not more than 250 employ- processes as a loan made under this sub-
U.S.C. 636(a)). ees during not fewer than 5 months out of section; and
(D) RESERVATION OF LOAN GUARANTEES.— that year; ‘‘(ii) to meet working capital needs, ac-
Section 7(a)(36)(S) of the Small Business Act ‘‘(iv) the term ‘eligible entity’— quire fixed assets, or refinance existing in-
(15 U.S.C. 636(a)(36)(S)) is amended— ‘‘(I) means any small business concern debtedness while recovering from the
(i) in clause (i)— that— COVID–19 pandemic.
(I) in subclause (I), by striking ‘‘and’’ at ‘‘(aa) except with respect to a covered sea- ‘‘(C) MAXIMUM LOAN AMOUNT.—The max-
the end; sonal employer, employs not more than 500 imum amount of a covered loan made to an
(II) in subclause (II), by striking the period employees; eligible entity shall be the lesser of—
at the end and inserting ‘‘; and’’; and ‘‘(bb)(AA) except as provided in subitems ‘‘(i) $10,000,000; or
(III) by adding at the end the following: (BB), (CC), and (DD), had gross receipts dur- ‘‘(ii) the amount equal to 200 percent of the
‘‘(III) institutions of the Farm Credit Sys- ing the first or second quarter in 2020 that average annual receipts of the eligible enti-
tem chartered under the Farm Credit Act of are less than 50 percent of the gross receipts ty.
1971 (12 U.S.C. 2001 et seq.) with consolidated of the business concern during the same ‘‘(D) LOAN NUMBER LIMITATION.—An eligible
assets of not less than $10,000,000,000 and less quarter in 2019; entity may only receive 1 covered loan.
than $50,000,000,000.’’; and ‘‘(BB) if the small business concern was ‘‘(E) 90 DAY RULE FOR MAXIMUM LOAN
(ii) in clause (ii)— not in business during the first or second AMOUNT.—The maximum aggregate loan
(I) in subclause (II), by striking ‘‘and’’ at quarter of 2019, but was in business during amount of loans guaranteed under this sub-
the end; the third and fourth quarter of 2019, had section that are approved for an eligible en-
(II) in subclause (III), by striking the pe- gross receipts during the first or second tity (including any affiliates) within 90 days
riod at the end and inserting ‘‘; and’’; and quarter of 2020 that are less than 50 percent of approval of another loan under this sub-
(III) by adding at the end the following: of the amount of the gross receipts of the section for the eligible entity (including any
‘‘(IV) institutions of the Farm Credit Sys- small business concern during the third or affiliates) shall not exceed $10,000,000.
tem chartered under the Farm Credit Act of fourth quarter of 2019; ‘‘(F) APPLICATION DEADLINE.—An eligible
1971 (12 U.S.C. 2001 et seq.) with consolidated ‘‘(CC) if the small business concern was not entity desiring a covered loan shall submit
assets of less than $10,000,000,000.’’. in business during the first, second, or third an application not later than December 31,
(n) DEFINITION OF SEASONAL EMPLOYER.— quarter of 2019, but was in business during 2020.
(1) PPP LOANS.—Section 7(a)(36)(A) of the the fourth quarter of 2019, had gross receipts ‘‘(G) FEE WAIVER.—With respect to a cov-
Small Business Act (15 U.S.C. 636(a)(36)(A)) is during the first or second quarter of 2020 that ered loan—
amended— are less than 50 percent of the amount of the ‘‘(i) in lieu of the fee otherwise applicable
(A) in clause (xi), by striking ‘‘and’’ at the gross receipts of the small business concern under paragraph (23)(A), the Administrator
end; during the fourth quarter of 2019; or shall collect no fee; and
(B) in clause (xii), by striking the period at ‘‘(DD) if the small business concern was ‘‘(ii) in lieu of the fee otherwise applicable
the end and inserting ‘‘; and’’; and not in business during the first or second under paragraph (18)(A), the Administrator
(C) by adding at the end the following: quarter of 2020, had gross receipts during any shall collect no fee.
‘‘(xiii) the term ‘seasonal employer’ means 2-month period during 2020 that are less than ‘‘(H) LOAN TERMS.—
an eligible recipient that— 50 percent of the amount of the gross re- ‘‘(i) IN GENERAL.—In order to receive a cov-
‘‘(I) does not operate for more than 7 ceipts of the small business concern during ered loan, an eligible entity shall not be re-
months in any calendar year; or any other 2-month period during 2020; and quired to show that the eligible entity is un-
‘‘(II) during the preceding calendar year, ‘‘(cc)(AA) is a covered seasonal employer able to obtain credit elsewhere.
had gross receipts for any 6 months of that seeking a covered loan of not more than ‘‘(ii) MATURITY AND INTEREST RATE.—A cov-
year that were not more than 33.33 percent of $2,000,000; or ered loan shall—
the gross receipts of the employer for the ‘‘(BB) is a small business concern the prin- ‘‘(I) have a maturity of 20 years; and
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other 6 months of that year.’’. cipal place of business of which is in, and not ‘‘(II) bear an interest rate of equal to the
(2) LOAN FORGIVENESS.—Paragraph (12) of less than 50 percent of the total gross income sum of—
section 1106(a) of the CARES Act (15 U.S.C. of which is derived from the active conduct ‘‘(aa) the Secured Overnight Financing
9005(a)), as so redesignated by subsection of the business concern within, a small busi- Rate in effect for each of the days in the rel-
(d)(2) of this section, is amended to read as ness low-income census tract; and evant quarter that interest is charged, as
follows: ‘‘(II) does not include— compiled and released by the Federal Re-
‘‘(12) the terms ‘payroll costs’ and ‘sea- ‘‘(aa) an entity described in paragraph serve Bank of New York; and
sonal employer’ have the meanings given (37)(A)(v)(II); ‘‘(bb) 300 basis points.
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S4750 CONGRESSIONAL RECORD — SENATE August 4, 2020
‘‘(iii) GUARANTEE.—In an agreement to par- (2) in clause (vi), by inserting ‘‘, an organi- 636(a)), and such loan shall be treated as a
ticipate in a covered loan on a deferred basis, zation described in clause (vii),’’ after ‘‘non- debt to the extent the loan is not forgiven in
the participation by the Administration profit organization’’; and accordance with section 1106 of the CARES
shall be 100 percent of the covered loan. (3) by adding at the end the following: Act (15 U.S.C. 9005) or subparagraph (H) of
‘‘(iv) SUBSIDY FOR INTEREST PAYMENTS.— ‘‘(vii) ELIGIBILITY FOR CERTAIN 501(C)(6) OR- such paragraph (37), as applicable, with pri-
‘‘(I) IN GENERAL.—The Administrator shall GANIZATIONS.— ority equal to a claim of the kind specified
pay the amount of interest that is owed on a ‘‘(I) IN GENERAL.—Except as provided in in subsection (c)(1) of this section.
covered loan in regular servicing status for subclause (II), any organization that is de- ‘‘(2) The trustee may incur debt described
the maturity of the loan such that the inter- scribed in section 501(c)(6) of the Internal in paragraph (1) notwithstanding any provi-
est rate paid by the eligible entity is, at all Revenue Code and that is exempt from tax- sion in a contract, prior order authorizing
times, equal to a rate of 1 percent. ation under section 501(a) of such Code (ex- the trustee to incur debt under this section,
‘‘(II) TIMING OF PAYMENT.—The Adminis- cluding professional sports leagues and orga- prior order authorizing the trustee to use
trator shall— nizations with the purpose of promoting or cash collateral under section 363, or applica-
‘‘(aa) begin making payments under sub- participating in a political campaign or ble law that prohibits the debtor from incur-
clause (I) not later than 30 days after the other activity) shall be eligible to receive a ring additional debt.
date on which the first such payment is due; ‘‘(3) The court shall hold a hearing within
covered loan if—
and 7 days after the filing and service of the mo-
‘‘(aa) the organization does not receive tion to obtain a loan described in paragraph
‘‘(bb) make payments without regard to more than 10 percent of its receipts from lob-
the payment deferral described in clause (iv). (1).’’.
bying activities; (2) ALLOWANCE OF ADMINISTRATIVE EX-
‘‘(III) APPLICATION OF PAYMENT.—Any pay- ‘‘(bb) the lobbying activities of the organi- PENSES.—Section 503(b) of title 11, United
ment made by the Administrator under sub- zation do not comprise more than 10 percent
clause (I) shall be applied to the covered loan States Code, is amended—
of the total activities of the organization; (A) in paragraph (8)(B), by striking ‘‘and’’
such that the eligible entity is relieved of and
the obligation to pay that amount. at the end;
‘‘(cc) the organization employs not more (B) in paragraph (9), by striking the period
‘‘(v) PAYMENT DEFERRAL.— than 150 employees.
‘‘(I) IN GENERAL.—No payment of principal at the end and inserting ‘‘; and’’; and
‘‘(II) DESTINATION MARKETING ORGANIZA- (C) by adding at the end the following:
or interest shall be due on a covered loan for TIONS.—Notwithstanding subclause (I), dur-
the first 2 years of the covered loan. ‘‘(10) any debt incurred under section
ing the covered period, any destination mar- 364(g)(1) of this title.’’.
‘‘(II) ADDITIONAL DEFERRAL.—After the 2- keting organization shall be eligible to re-
year deferral period under subclause (I), the (3) CONFIRMATION OF PLAN FOR REORGANIZA-
ceive a covered loan if— TION.—Section 1191 of title 11, United States
Administrator may grant not more than an ‘‘(aa) the destination marketing organiza-
additional 2 years of principal deferral to the Code, is amended by adding at the end the
tion does not receive more than 10 percent of following:
eligible entity if the eligible entity is cer- its receipts from lobbying activities; ‘‘(f) SPECIAL PROVISION RELATED TO
tified by the Administrator and the Sec- ‘‘(bb) the lobbying activities of the destina- COVID–19 PANDEMIC.—Notwithstanding sec-
retary as economically distressed based on tion marketing organization do not comprise tion 1129(a)(9)(A) of this title and subsection
publicly available criteria established by the
more than 10 percent of the total activities (e) of this section, a plan that provides for
Administrator.
of the organization; payment of a claim of a kind specified in sec-
‘‘(vi) LIMITATION ON CHANGES IN TERMS.—
‘‘(cc) the destination marketing organiza- tion 503(b)(10) of this title may be confirmed
Notwithstanding any other provision of this
tion employs not more than 150 employees; under subsection (b) of this section if the
subsection, for a covered loan, the Adminis-
and plan proposes to make payments on account
trator shall not approve any increase in loan of such claim when due under the terms of
‘‘(dd) the destination marketing organiza-
amount or change in guaranty percentage, the loan giving rise to such claim.’’.
tion—
interest rate, interest accrual method, or (4) CONFIRMATION OF PLAN FOR FAMILY
‘‘(AA) is described in section 501(c) of the
maturity, except for such changes as may be FARMERS AND FISHERMEN.—Section 1225 of
Internal Revenue Code and is exempt from
necessary for prepayment and the deferment title 11, United States Code, is amended by
taxation under section 501(a) of such Code; or
of payment under clause (v). adding at the end the following:
‘‘(BB) is a quasi-governmental entity or is
‘‘(I) PROHIBITION ON USE OF PROCEEDS FOR ‘‘(d) Notwithstanding section 1222(a)(2) of
a political subdivision of a State or local
DISASTER LOANS.—An eligible entity shall not this title and subsection (b)(1) of this sec-
government, including any instrumentality
use the proceeds of a covered loan to refi- tion, a plan that provides for payment of a
of those entities.’’.
nance any loan made under subsection (b). claim of a kind specified in section 503(b)(10)
(q) PROHIBITION ON USE OF LOAN PROCEEDS
‘‘(J) SECONDARY MARKET.—In order to in- FOR LOBBYING ACTIVITIES.—Section of this title may be confirmed if the plan
crease the liquidity of the secondary market 7(a)(36)(F) of the Small Business Act (15 proposes to make payments on account of
for covered loans, the Administrator shall, U.S.C. 636(a)(36)(F)) is amended by adding at such claim when due under the terms of the
not later than 60 days after the date of en- the end the following: loan giving rise to such claim.’’.
actment of this paragraph, substantially re- ‘‘(vi) PROHIBITION.—None of the proceeds of (5) CONFIRMATION OF PLAN FOR INDIVID-
duce barriers to the sale of covered loans on a covered loan may be used for— UALS.—Section 1325 of title 11, United States
the secondary market. ‘‘(I) lobbying activities, as defined in sec- Code, is amended by adding at the end the
‘‘(K) LENDER ELIGIBILITY.—In order to in- tion 3 of the Lobbying Disclosure Act of 1995 following:
crease access to and the equitable distribu- (2 U.S.C. 1602); ‘‘(d) Notwithstanding section 1322(a)(2) of
tion of covered loans, the Administrator ‘‘(II) lobbying expenditures related to a this title and subsection (b)(1) of this sec-
shall establish a process by which a lender State or local election; or tion, a plan that provides for payment of a
approved to make loans under paragraph (36) claim of a kind specified in section 503(b)(10)
‘‘(III) expenditures designed to influence
may make covered loans. of this title may be confirmed if the plan
the enactment of legislation, appropriations,
‘‘(L) REIMBURSEMENT FOR LOAN PROCESSING proposes to make payments on account of
regulation, administrative action, or Execu-
AND SERVICING.—The Administrator shall re- such claim when due under the terms of the
tive order proposed or pending before Con-
imburse a lender authorized to make a cov- loan giving rise to such claim.’’.
gress or any State government, State legis-
ered loan in an amount that is— (6) EFFECTIVE DATE; SUNSET.—
lature, or local legislature or legislative
‘‘(i) 3 percent of the principal amount of (A) EFFECTIVE DATE.—The amendments
body.’’.
the financing of the covered loan up to made by paragraphs (1) through (5) shall—
(r) EFFECTIVE DATE; APPLICABILITY.—The
$350,000; and amendments made to paragraph (36) of sec- (i) take effect on the date on which the Ad-
‘‘(ii) 1 percent of the principal amount of tion 7(a) of the Small Business Act (15 U.S.C. ministrator submits to the Director of the
the financing of the covered loan above 636(a)) and title I of the CARES Act (Public Executive Office for United States Trustees a
$350,000, if applicable. Law 116–136) under this section shall be effec- written determination that, subject to satis-
‘‘(M) STANDARD OPERATING PROCEDURE.— tive as if included in the CARES Act and fying any other eligibility requirements, any
The Administrator shall, to the maximum shall apply to any loan made pursuant to debtor in possession or trustee that is au-
extent practicable, allow a lender approved section 7(a)(36) of the Small Business Act (15 thorized to operate the business of the debt-
to make covered loans to use existing pro- U.S.C. 636(a)(36)). or under section 1183, 1184, 1203, 1204, or 1304
gram guidance and standard operating proce- (s) BANKRUPTCY PROVISIONS.— of title 11, United States Code, would be eli-
dures for loans made under this subsection.’’. (1) IN GENERAL.—Section 364 of title 11, gible for a loan under paragraphs (36) and (37)
(p) ELIGIBILITY OF 501(C)(6) ORGANIZATIONS of section 7(a) of the Small Business Act (15
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United States Code, is amended by adding at
FOR LOANS UNDER THE PAYCHECK PROTECTION the end the following: U.S.C. 636(a)); and
PROGRAM.—Section 7(a)(36)(D) of the Small ‘‘(g)(1) The court, after notice and a hear- (ii) apply to any case pending on or com-
Business Act (15 U.S.C. 636(a)(36)(D)) is ing, may authorize a debtor in possession or menced on or after the date described in
amended— a trustee that is authorized to operate the clause (i).
(1) in clause (v), by inserting ‘‘or whether business of the debtor under section 1183, (B) SUNSET.—
an organization described in clause (vii) em- 1184, 1203, 1204, or 1304 of this title to obtain (i) IN GENERAL.—If the amendments made
ploys not more than 150 employees,’’ after a loan under paragraph (36) or (37) of section by this subsection take effect under subpara-
‘‘clause (i)(I),’’; 7(a) of the Small Business Act (15 U.S.C. graph (A), effective on the date that is 2
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4751
years after the date of enactment of this (ii) the spouse, child, son-in-law, or daugh- ticipating investment company under the fa-
Act— ter-in-law, as determined under applicable cility; or
(I) section 364 of title 11, United States common law, of an individual described in ‘‘(iii) is located in a small business low-in-
Code, is amended by striking subsection (g); clause (i). come census tract; and
(II) section 503(b) of title 11, United States (D) EXECUTIVE DEPARTMENT.—The term ‘‘(B) does not include an entity described
Code, is amended— ‘‘Executive department’’ has the meaning in paragraph (37)(A)(v)(II) of such section
(aa) in paragraph (8)(B), by adding ‘‘and’’ given the term in section 101 of title 5, 7(a).
at the end; United States Code. ‘‘(2) FACILITY.—The term ‘facility’ means
(bb) in paragraph (9), by striking ‘‘; and’’ at (E) MEMBER OF CONGRESS.—The term the facility established under subsection (b).
the end and inserting a period; and ‘‘Member of Congress’’ means a Member of ‘‘(3) FUND.—The term ‘Fund’ means the
(cc) by striking paragraph (10); the Senate or House of Representatives, a fund established under subsection (h).
(III) section 1191 of title 11, United States Delegate to the House of Representatives, ‘‘(4) PARTICIPATING INVESTMENT COMPANY.—
Code, is amended by striking subsection (f); and the Resident Commissioner from Puerto The term ‘participating investment com-
(IV) section 1225 of title 11, United States Rico. pany’ means a small business investment
Code, is amended by striking subsection (d); (F) EQUITY INTEREST.—The term ‘‘equity company approved under subsection (d) to
and interest’’ means— participate in the facility
(V) section 1325 of title 11, United States (i) a share in an entity, without regard to ‘‘(5) PROTÉGÉ INVESTMENT COMPANY.—The
Code, is amended by striking subsection (d). whether the share is— term ‘protégé investment company’ means a
(ii) APPLICABILITY.—Notwithstanding the (I) transferable; or small business investment company that—
amendments made by clause (i) of this sub- (II) classified as stock or anything similar; ‘‘(A) is majority managed by new, inexperi-
paragraph, if the amendments made by para- (ii) a capital or profit interest in a limited enced, or otherwise underrepresented fund
graphs (1), (2), (3), (4), and (5) take effect liability company or partnership; or managers; and
under subparagraph (A) of this paragraph, (iii) a warrant or right, other than a right ‘‘(B) elects and is selected by the Adminis-
such amendments shall apply to any case to convert, to purchase, sell, or subscribe to tration to participate in the pathway-
under title 11, United States Code, com- a share or interest described in clause (i) or protégé program under subsection (g).
menced before the date that is 2 years after (ii), respectively. ‘‘(6) SMALL BUSINESS CONCERN.—The term
the date of enactment of this Act. (2) REQUIREMENT.—The principal executive ‘small business concern’ has the meaning
officer and the principal financial officer, or given the term in section 3(a) of the Small
(t) OVERSIGHT.—
individuals performing similar functions, of Business Act (15 U.S.C. 632(a)).
(1) COMPLIANCE WITH OVERSIGHT REQUIRE-
an entity seeking to enter a transaction ‘‘(7) SMALL BUSINESS LOW-INCOME CENSUS
MENTS.—
made under paragraph (36), (37), or (38) of sec- TRACT.—The term ‘small business low-in-
(A) IN GENERAL.—Except as provided in
tion 7(a) of the Small Business Act (15 U.S.C. come census tract’ has the meaning given
subparagraph (B), on and after the date of
636(a)), as added and amended by this sec- the term in section 7(a)(38)(A) of the Small
enactment of this Act, the Administrator
tion, shall, before that transaction is ap- Business Act.
shall comply with any data or information
proved, disclose to the Administrator wheth-
requests or inquiries made by the Comp- ‘‘(b) ESTABLISHMENT.—
er the entity is a covered entity.
troller General of the United States not later ‘‘(1) FACILITY.—The Administrator shall es-
(3) APPLICABILITY.—The requirement under
than 30 days (or such later date as the Comp- tablish and carry out a facility to improve
paragraph (2)—
troller General may specify) after receiving the recovery of eligible small business con-
(A) shall apply with respect to any trans-
the request or inquiry. cerns from the COVID–19 pandemic, increase
action made under paragraph (36), (37), or (38)
(B) EXCEPTION.—If the Administrator is un- resiliency in the manufacturing supply chain
of section 7(a) of the Small Business Act (15
able to comply with a request or inquiry de- of eligible small business concerns, and in-
U.S.C. 636(a)), as added and amended by this
scribed in subparagraph (A) within the 30- crease the economic development of small
section, on or after the date of enactment of
day period or, if applicable, later period de- business low-income census tracts by pro-
this Act; and
scribed in that clause, the Administrator viding financial assistance to participating
(B) shall not apply with respect to—
shall, during that 30-day (or later) period, investment companies that facilitate equity
(i) any transaction described in subpara-
submit to the Committee on Small Business financings to eligible small business con-
graph (A) that was made before the date of
and Entrepreneurship of the Senate and the cerns in accordance with this section.
enactment of this Act; or
Committee on Small Business of the House ‘‘(2) ADMINISTRATION OF FACILITY.—The fa-
(ii) forgiveness under section 1106 of the
of Representatives a notification that in- cility shall be administered by the Adminis-
CARES Act (15 U.S.C. 9005) or any other pro-
cludes a detailed justification for the inabil- trator acting through the Associate Admin-
vision of law of any loan associated with any
ity of the Administrator to comply with the istrator described in section 201.
transaction described in subparagraph (A)
request or inquiry. ‘‘(c) APPLICATIONS.—
that was made before the date of enactment
(2) TESTIMONY.—Not later than the date ‘‘(1) IN GENERAL.—Any small business in-
of this Act.
that is 30 days after the date of enactment of (v) SMALL BUSINESS INVESTMENT COMPANY vestment company may submit to the Ad-
this Act, and every quarter thereafter until PROGRAM.— ministrator an application to participate in
the date that is 2 years after the date of en- (1) IN GENERAL.—Part A of title III of the the facility.
actment of this Act, the Administrator and Small Business Investment Act of 1958 (15 ‘‘(2) REQUIREMENTS FOR APPLICATION.—An
the Secretary of the Treasury shall testify U.S.C. 681 et seq.) is amended— application to participate in the facility
before the Committee on Small Business and (A) in section 302(a) (15 U.S.C. 682(a))— shall include the following:
Entrepreneurship of the Senate and the Com- (i) in paragraph (1)— ‘‘(A) A business plan describing how the
mittee on Small Business of the House of (I) in subparagraph (A), by striking ‘‘or’’ at applicant intends to make successful equity
Representatives regarding implementation the end; investments in eligible small business con-
of this section and the amendments made by (II) in subparagraph (B), by striking the pe- cerns.
this section. riod at the end and inserting ‘‘; or’’; and ‘‘(B) Information regarding the relevant in-
(u) CONFLICTS OF INTEREST.— (III) by adding at the end the following: vestment qualifications and backgrounds of
(1) DEFINITIONS.—In this subsection: ‘‘(C) $20,000,000, adjusted every 5 years for the individuals responsible for the manage-
(A) CONTROLLING INTEREST.—The term inflation, with respect to each licensee au- ment of the applicant.
‘‘controlling interest’’ means owning, con- thorized or seeking authority to sell bonds ‘‘(C) A description of the extent to which
trolling, or holding not less than 20 percent, to Administration as a participating invest- the applicant meets the selection criteria
by vote or value, of the outstanding amount ment company under section 321.’’; and under subsection (d)(2).
of any class of equity interest in an entity. (B) by adding at the end the following: ‘‘(3) EXCEPTIONS TO APPLICATION FOR NEW
(B) COVERED ENTITY.— ‘‘SEC. 321. SMALL BUSINESS AND DOMESTIC PRO- LICENSEES.—Not later than 90 days after the
(i) DEFINITION.—The term ‘‘covered entity’’ DUCTION RECOVERY INVESTMENT date of enactment of this section, the Ad-
means an entity in which a covered indi- FACILITY. ministrator shall reduce requirements for
vidual directly or indirectly holds a control- ‘‘(a) DEFINITIONS.—In this section: applicants applying to operate as a partici-
ling interest. ‘‘(1) ELIGIBLE SMALL BUSINESS CONCERN.— pating investment company under this sec-
(ii) TREATMENT OF SECURITIES.—For the The term ‘eligible small business concern’— tion in order to encourage the participation
purpose of determining whether an entity is ‘‘(A) means a small business concern that— of new small business investment companies
a covered entity, the securities owned, con- ‘‘(i) meets the revenue reduction require- in the facility under this section, which may
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trolled, or held by 2 or more individuals who ments established by paragraph include the requirements established under
are related as described in subparagraph (37)(A)(v)(I)(cc) of section 7(a) of the Small part 107 of title 13, Code of Federal Regula-
(C)(ii) shall be aggregated. Business Act (15 U.S.C. 636(a)); tions, or any successor regulation, relating
(C) COVERED INDIVIDUAL.—The term ‘‘cov- ‘‘(ii) is a manufacturing business that is to—
ered individual’’ means— assigned a North American Industry Classi- ‘‘(A) the approval of initial management
(i) the President, the Vice President, the fication System code beginning with 31, 32, expenses;
head of an Executive department, or a Mem- or 33 at the time at which the small business ‘‘(B) the management ownership diversity
ber of Congress; and concern receives an investment from a par- requirement;
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S4752 CONGRESSIONAL RECORD — SENATE August 4, 2020
‘‘(C) the disclosure of general compen- ing bonds that include equity features as de- pating investment company under the facil-
satory practices and fee structures; or scribed in this subsection. ity shall be the lesser of—
‘‘(D) any other requirement that the Ad- ‘‘(2) BOND TERMS.—A bond purchased by the ‘‘(i) twice the amount of the regulatory
ministrator determines to be an obstacle to Administrator from a participating invest- capital of the participating investment com-
achieving the purposes described in this ment company under this subsection shall pany; or
paragraph. have the following terms and conditions: ‘‘(ii) $200,000,000.
‘‘(d) SELECTION OF PARTICIPATING INVEST- ‘‘(A) TERM AND INTEREST.— ‘‘(4) COMMITMENT PROCESS.—Commitments
MENT COMPANIES.— ‘‘(i) IN GENERAL.—The bond shall be issued by the Administration to purchase bonds
‘‘(1) DETERMINATION.— for a term of not less than 15 years and shall under the facility shall remain available to
‘‘(A) IN GENERAL.—Except as provided in bear interest at a rate determined by the Ad- be sold by a participating investment com-
paragraph (3), not later than 60 days after ministrator of not more than 2 percent. pany until the end of the fourth fiscal year
the date on which the Administrator re- ‘‘(ii) ACCRUAL OF INTEREST.—Interest on following the year in which the commitment
ceives an application under subsection (c), the bond shall accrue and shall be payable in is made, subject to review and approval by
the Administrator shall— accordance with subparagraph (D). the Administration based on regulatory com-
‘‘(i) make a final determination to approve ‘‘(iii) PREPAYMENT.—The bond shall be pliance, financial status, change in manage-
or disapprove such applicant to participate prepayable without penalty after the end of ment, deviation from business plan, and such
in the facility; and the 1-year period beginning on the date on other limitations as may be determined by
‘‘(ii) transmit the determination to the ap- which the bond was purchased. the Administration by regulation or other-
plicant in writing. ‘‘(B) PROFITS.— wise.
‘‘(B) COMMITMENT AMOUNT.—Except as pro- ‘‘(i) IN GENERAL.—The Administration shall ‘‘(5) COMMITMENT CONDITIONS.—
vided in paragraph (3), at the time of ap- be entitled to receive a share of the profits ‘‘(A) IN GENERAL.—As a condition of receiv-
proval of an applicant, the Administrator net of any profit sharing performance com- ing a commitment under the facility, not
shall make a determination of the amount of pensation of the participating investment less than 50 percent of amounts invested by
the commitment that may be awarded to the company equal to the quotient obtained by the participating investment company shall
applicant under this section. dividing— be invested in eligible small business con-
‘‘(I) one-third of the commitment that the cerns.
‘‘(2) SELECTION CRITERIA.—In making a de-
participating investment company is ap- ‘‘(B) EXAMINATIONS.—In addition to the
termination under paragraph (1), the Admin-
proved for under subsection (d); by matters set forth in section 310(c), the Ad-
istrator shall consider—
‘‘(II) the commitment approved under sub- ministration shall examine each partici-
‘‘(A) the probability that the investment
section (d) plus the regulatory capital of the pating investment company in such detail so
strategy of the applicant will successfully
participating investment company at the as to determine whether the participating
repay any financial assistance provided by
time of approval under that subsection. investment company has complied with the
the Administration, including the prob-
‘‘(ii) DETERMINATION OF PERCENTAGE.—The requirements under this subsection.
ability of a return significantly in excess
share to which the Administration is enti-
thereof; ‘‘(f) DISTRIBUTIONS AND FEES.—
tled under clause (i)—
‘‘(B) the probability that the investments ‘‘(1) DISTRIBUTION REQUIREMENTS.—
‘‘(I) shall be determined at the time of ap-
made by the applicant will— ‘‘(A) DISTRIBUTIONS.—As a condition of re-
proval under subsection (d); and
‘‘(i) provide capital to eligible small busi- ceiving a commitment under the facility, a
‘‘(II) without the approval of the Adminis-
ness concerns; or participating investment company shall
tration, shall not be revised, including to re-
‘‘(ii) create or preserve jobs in the United flect subsequent distributions of profits, re- make all distributions to the Administrator
States; turns of capital, or repayments of bonds, or in the same form and in a manner as are
‘‘(C) the probability that the applicant will otherwise. made to investors, or otherwise at a time
meet the objectives in the business plan of ‘‘(C) PROFIT SHARING PERFORMANCE COM- and in a manner consistent with regulations
the applicant, including the financial goals, PENSATION.—
or policies of the Administration.
and, if applicable, the pathway-protégé pro- ‘‘(i) RECEIPT BY ADMINISTRATION.—The Ad- ‘‘(B) ALLOCATIONS.—A participating invest-
gram in accordance with subsection (g); and ministration shall receive a share of profits ment company shall make allocations of in-
‘‘(D) the probability that the applicant will of not more than 2 percent, which shall be come, gain, loss, deduction, and credit to the
assist eligible small business concerns in deposited into the Fund and be available to Administrator with respect to any out-
achieving profitability. make commitments under this subsection. standing bonds as if the Administrator were
‘‘(3) APPROVAL OF PARTICIPATING INVEST- ‘‘(ii) RECEIPT BY MANAGERS.—The managers an investor.
MENT COMPANIES.— of the participating investment company ‘‘(2) FEES.—The Administrator may not
‘‘(A) PROVISIONAL APPROVAL.— may receive a maximum profit sharing per- charge fees for participating investment
‘‘(i) IN GENERAL.—Notwithstanding para- formance compensation of 25 percent minus companies other than examination fees that
graph (1), with respect to an application sub- the share of profits paid to the Administra- are consistent with the license of the partici-
mitted by an applicant to operate as a par- tion under clause (i). pating investment company.
ticipating investment company under this ‘‘(D) PROHIBITION ON DISTRIBUTIONS.—No ‘‘(3) BIFURCATION.—Losses on bonds issued
section, the Administrator may provide pro- distributions on capital, including profit dis- by participating investment companies shall
visional approval for the applicant in lieu of tributions, shall be made by the partici- not be offset by fees or any other charges on
a final determination of approval and deter- pating investment company to the investors debenture small business investment compa-
mination of the amount of the commitment or managers of the participating investment nies.
under that paragraph. company until the Administration has re- ‘‘(g) PROTÉGÉ PROGRAM.—The Adminis-
‘‘(ii) PURPOSE.—The purpose of a provi- ceived payment of all accrued interest on the trator shall establish a pathway-protégé pro-
sional approval under clause (i) is to— bond committed under this section. gram in which a protégé investment com-
‘‘(I) encourage applications from invest- ‘‘(E) REPAYMENT OF PRINCIPAL.—Except as pany may receive technical assistance and
ment companies with an investment man- described in subparagraph (F), repayments of program support from a participating invest-
date from the committed private market principal of the bond of a participating in- ment company on a voluntary basis and
capital of the investment company that does vestment company shall be— without penalty for non-participation.
not conform to the requirements described in ‘‘(i) made at the same time as returns of ‘‘(h) LOSS LIMITING FUND.—
this section at the time of application; private capital; and ‘‘(1) IN GENERAL.—There is established in
‘‘(II) allow the applicant to more effec- ‘‘(ii) in amounts equal to the pro rata the Treasury a fund for making commit-
tively raise capital commitments in the pri- share of the Administration of the total ments and purchasing bonds with equity fea-
vate markets by referencing the intent of amount being repaid or returned at such tures under the facility and receiving capital
the Administrator to award the applicant a time. returned by participating investment compa-
commitment; and ‘‘(F) LIQUIDATION OR DEFAULT.—Upon any nies.
‘‘(III) allow the applicant to more precisely liquidation event or default, as defined by ‘‘(2) USE OF FUNDS.—Amounts appropriated
request the desired amount of commitment the Administration, any unpaid principal or to the Fund or deposited in the Fund under
pending the securing of capital from private accrued interest on the bond shall— paragraph (3) shall be available to the Ad-
market investors. ‘‘(i) have a priority over all equity of the ministrator, without further appropriation,
‘‘(iii) LIMIT ON PERIOD OF THE TIME.—The participating investment company; and for making commitments and purchasing
period between a provisional approval under ‘‘(ii) be paid before any return of equity or bonds under the facility and expenses and
SSpencer on DSK126QN23PROD with SENATE
clause (i) and the final determination of ap- any other distributions to the investors or payments, excluding administrative ex-
proval under paragraph (1) shall not exceed managers of the participating investment penses, relating to the operations of the Ad-
12 months. company. ministrator under the facility.
‘‘(e) COMMITMENTS AND SBIC BONDS.— ‘‘(3) AMOUNT OF COMMITMENTS AND PUR- ‘‘(3) DEPOSITING OF AMOUNTS.—
‘‘(1) IN GENERAL.—The Administrator may, CHASES.— ‘‘(A) IN GENERAL.—All amounts received by
out of amounts available in the Fund, pur- ‘‘(A) MAXIMUM AMOUNT.—The maximum the Administrator from a participating in-
chase or commit to purchase from a partici- amount of outstanding bonds and commit- vestment company relating to the facility,
pating investment company 1 or more accru- ments to purchase bonds for any partici- including any moneys, property, or assets
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4753
derived by the Administrator from oper- Services and General Government Appropria- SEC. 3. SMALL BUSINESS RECOVERY.
ations in connection with the facility, shall tions Act, 2020 (division C of Public Law 116– (a) SHORT TITLE.—This section may be
be deposited in the Fund. 193) shall apply with respect to any commit- cited as the ‘‘Continuing the Paycheck Pro-
‘‘(B) PERIOD OF AVAILABILITY.—Amounts ments under such section 7(a) other than tection Program Act’’.
deposited under subparagraph (A) shall re- under paragraphs (36), (37), and (38) of such (b) DEFINITIONS.—In this section:
main available until expended. section 7(a).’’. (1) ADMINISTRATION; ADMINISTRATOR.—The
‘‘(i) APPLICATION OF OTHER SECTIONS.—To (B) RECOVERY SECTOR LOANS.—During the terms ‘‘Administration’’ and ‘‘Adminis-
the extent not inconsistent with require- period beginning on the date of enactment of trator’’ mean the Small Business Adminis-
ments under this section, the Administrator this Act and ending on December 31, 2020, the tration and the Administrator thereof, re-
may apply sections 309, 311, 312, 313, and 314 amount authorized for commitments under spectively.
to activities under this section and an offi- paragraph (38) of section 7(a) of the Small (2) SMALL BUSINESS CONCERN.—The term
cer, director, employee, agent, or other par- Business Act (15 U.S.C. 636(a)), as added by ‘‘small business concern’’ has the meaning
ticipant in a participating investment com- this section, shall be $100,000,000,000. given the term in section 3 of the Small
pany shall be subject to the requirements (2) DIRECT APPROPRIATIONS.— Business Act (15 U.S.C. 632).
(c) EMERGENCY RULEMAKING AUTHORITY.—
under such sections. (A) RESCISSION.—With respect to unobli-
Not later than 30 days after the date of en-
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.— gated balances under the heading ‘‘ ‘Small
actment of this Act, the Administrator shall
There is authorized to be appropriated for Business Administration—Business Loans
issue regulations to carry out this section
the first fiscal year beginning after the date Program Account, CARES Act’’ as of the day and the amendments made by this section
of enactment of this part $10,000,000,000 to before the date of enactment of this Act, without regard to the notice requirements
carry out the facility. Amounts appropriated $100,000,000,000 shall be rescinded and depos- under section 553(b) of title 5, United States
pursuant to this subsection shall remain ited into the general fund of the Treasury. Code.
available until the end of the second fiscal (B) NEW DIRECT APPROPRIATIONS.—There is (d) ADDITIONAL ELIGIBLE EXPENSES.—
year beginning after the date of enactment appropriated, out of amounts in the Treas- (1) ALLOWABLE USE OF PPP LOAN.—Section
of this section.’’. ury not otherwise appropriated, for the fiscal 7(a)(36)(F)(i) of the Small Business Act (15
(2) APPROVAL OF BANK-OWNED, NON-LEVER- year ending September 30, 2020— U.S.C. 636(a)(36)(F)(i)) is amended—
AGED APPLICANTS.—Section 301(c)(2) of the (i) to remain available until September 30, (A) in subclause (VI), by striking ‘‘and’’ at
Small Business Investment Act of 1958 (15 2021, for additional amounts— the end;
U.S.C. 681(c)(2)) is amended— (I) $189,990,000,000 under the heading (B) in subclause (VII), by striking the pe-
(A) in subparagraph (B), in the matter pre- ‘‘Small Business Administration—Business riod at the end and inserting a semicolon;
ceding clause (i), by striking ‘‘Within’’ and Loans Program Account, CARES Act’’ for and
inserting ‘‘Except as provided in subpara- the cost of guaranteed loans as authorized (C) by adding at the end the following:
graph (C), within’’; and under paragraph (36) and (37) of section 7(a) ‘‘(VIII) covered operations expenditures, as
(B) by adding at the end the following: of the Small Business Act (15 U.S.C. 636(a)), defined in section 1106(a) of the CARES Act
‘‘(C) EXCEPTION FOR BANK-OWNED, NON-LE- as amended and added by this section; (15 U.S.C. 9005(a));
VERAGED APPLICANTS.—Notwithstanding sub- (II) $57,700,000,000 under the heading ‘‘(IX) covered property damage costs, as
paragraph (B), not later than 45 days after ‘‘Small Business Administration—Recovery defined in such section 1106(a);
the date on which the Administrator re- Sector Loans’’ for the cost of guaranteed ‘‘(X) covered supplier costs, as defined in
ceives a completed application submitted by loans as authorized under paragraph (38) of such section 1106(a); and
a bank-owned, non-leveraged applicant in ac- section 7(a) of the Small Business Act (15 ‘‘(XI) covered worker protection expendi-
cordance with this subsection and in accord- U.S.C. 636(a)), as added by this section; and tures, as defined in such section 1106(a).’’.
ance with such requirements as the Adminis- (III) $10,000,000 under the heading under the (2) LOAN FORGIVENESS.—Section 1106 of the
trator may prescribe by regulation, the Ad- heading ‘‘Department of Commerce—Minor- CARES Act (15 U.S.C. 9005) is amended—
ministrator shall— ity Business Development Agency’’ for mi- (A) in subsection (a)—
‘‘(i) review the application in its entirety; nority business centers of the Minority Busi- (i) by redesignating paragraphs (6), (7), and
and ness Development Agency to provide tech- (8) as paragraphs (10), (11), and (12), respec-
‘‘(ii)(I) approve the application and issue a nical assistance to small business concerns; tively;
license for such operation to the applicant if and (ii) by redesignating paragraph (5) as para-
the requirements of this section are satis- (ii) to remain available until September 30, graph (8);
fied; or 2023, $10,000,000,000 under the heading ‘‘Small (iii) by redesignating paragraph (4) as para-
‘‘(II) disapprove the application and notify Business Administration—SBIC’’ to carry graph (6);
the applicant in writing of the disapproval.’’. out part D of title III of the Small Business (iv) by redesignating paragraph (3) as para-
(3) ELECTRONIC SUBMISSIONS.—Part A of Investment Act of 1958 (15 U.S.C. 681 et seq.), graph (4);
title III of the Small Business Investment as added by this section. (v) by inserting after paragraph (2) the fol-
Act of 1958 (15 U.S.C. 681 et seq.), as amended (C) AVAILABILITY OF AMOUNTS APPRO- lowing:
by paragraph (1) of this subsection, is amend- PRIATED FOR THE OFFICE OF INSPECTOR GEN- ‘‘(3) the term ‘covered operations expendi-
ed by adding at the end the following: ERAL.—Section 1107(a)(3) of the CARES Act ture’ means a payment for any business soft-
‘‘SEC. 322. ELECTRONIC SUBMISSIONS. (15 U.S.C. 9006(a)(3)) is amended by striking ware or cloud computing service that facili-
‘‘The Administration shall permit any doc- ‘‘September 20, 2024’’ and inserting ‘‘ex- tates business operations, product or service
ument submitted under this title, or pursu- pended’’. delivery, the processing, payment, or track-
ant to a regulation carrying out this title, to (x) EMERGENCY DESIGNATION.— ing of payroll expenses, human resources,
be submitted electronically, including by (1) IN GENERAL.—The amounts provided sales and billing functions, or accounting or
permitting an electronic signature for any under this section are designated as an emer- tracking of supplies, inventory, records and
signature that is required on such a docu- gency requirement pursuant to section 4(g) expenses;’’;
ment.’’. of the Statutory Pay-As-You-Go Act of 2010 (vi) by inserting after paragraph (4), as so
(w) COMMITMENT AUTHORITY AND APPRO- (2 U.S.C. 933(g)). redesignated, the following:
PRIATIONS.— (2) DESIGNATION IN SENATE.—In the Senate, ‘‘(5) the term ‘covered property damage
(1) COMMITMENT AUTHORITY.— this section is designated as an emergency cost’ means a cost related to property dam-
(A) CARES ACT AMENDMENTS.—Section requirement pursuant to section 4112(a) of H. age and vandalism or looting due to public
1102(b) of the CARES Act (Public Law 116– Con. Res. 71 (115th Congress), the concurrent disturbances that occurred during 2020 that
136) is amended— resolution on the budget for fiscal year 2018. was not covered by insurance or other com-
(i) in paragraph (1)— pensation;’’;
(I) in the paragraph heading, by inserting (vii) by inserting after paragraph (6), as so
‘‘AND SECOND DRAW’’ after ‘‘PPP’’; SA 2507. Mr. RUBIO (for himself and redesignated, the following:
(II) by striking ‘‘August 8, 2020’’ and insert- Ms. COLLINS) submitted an amendment ‘‘(5) the term ‘covered supplier cost’ means
ing ‘‘December 31, 2020’’; intended to be proposed to amendment an expenditure made by an entity to a sup-
(III) by striking ‘‘paragraph (36)’’ and in- SA 2499 proposed by Mr. MCCONNELL to plier of goods pursuant to a contract in ef-
serting ‘‘paragraphs (36) and (37)’’; and fect before February 15, 2020 for the supply of
(IV) by striking ‘‘$659,000,000,000’’ and in-
the bill S. 178, to condemn gross human goods that are essential to the operations of
serting ‘‘$748,990,000,000’’; and rights violations of ethnic Turkic Mus- the entity at the time at which the expendi-
SSpencer on DSK126QN23PROD with SENATE
(ii) by amending paragraph (2) to read as lims in Xinjiang, and calling for an end ture is made;’’;
follows: to arbitrary detention, torture, and (viii) by inserting after paragraph (8), as so
‘‘(B) OTHER 7(A) LOANS.—During fiscal year harassment of these communities in- redesignated, the following:
2020, the amount authorized for commit- side and outside China; which was or- ‘‘(9) the term ‘covered worker protection
ments for section 7(a) of the Small Business dered to lie on the table; as follows: expenditure’—
Act (15 U.S.C. 636(a)) under the heading ‘‘(A) means an operating or a capital ex-
‘Small Business Administration—Business At the end of the amendment, add the fol- penditure that is required to facilitate the
Loans Program Account’ in the Financial lowing: adaptation of the business activities of an
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S4754 CONGRESSIONAL RECORD — SENATE August 4, 2020
entity to comply with requirements estab- ‘‘(1) IN GENERAL.—A lender may rely on ‘‘(2) COVERED LOANS BETWEEN $150,000 AND
lished or guidance issued by the Department any certification or documentation sub- $2,000,000.—
of Health and Human Services, the Centers mitted by an applicant for a covered loan or ‘‘(A) IN GENERAL.—Notwithstanding sub-
for Disease Control, or the Occupational an eligible recipient of a covered loan that— section (e), with respect to a covered loan
Safety and Health Administration during the ‘‘(A) is submitted pursuant to any statu- made to an eligible recipient that is more
period beginning on March 1, 2020 and ending tory requirement relating to covered loans than $150,000 and not more than $2,000,000—
December 31, 2020 related to the maintenance or any rule or guidance issued to carry out ‘‘(i) the eligible recipient seeking loan for-
of standards for sanitation, social any action relating to covered loans; and giveness under this section—
distancing, or any other worker or customer ‘‘(B) attests that the applicant or eligible ‘‘(I) is not required to submit the sup-
safety requirement related to COVID–19; recipient, as applicable, has accurately porting documentation described in para-
‘‘(B) may include— verified any certification or documentation graph (1) or (2) of subsection (e) or the cer-
‘‘(i) the purchase, maintenance, or renova- provided to the lender. tification described in subsection (e)(3)(A);
tion of assets that create or expand— ‘‘(2) NO ENFORCEMENT ACTION.—With re- ‘‘(II) shall retain all relevant schedules,
‘‘(I) a drive-through window facility; spect to a lender that relies on a certifi- worksheets, and supporting documentation
‘‘(II) an indoor, outdoor, or combined air or cation or documentation described in para- for the 3-year period following submission of
air pressure ventilation or filtration system; graph (1)— the application for loan forgiveness; and
‘‘(III) a physical barrier such as a sneeze ‘‘(A) an enforcement action may not be ‘‘(III) may complete and submit any form
guard; taken against the lender acting in good faith related to borrower demographic informa-
‘‘(IV) an indoor, outdoor, or combined com- relating to origination or forgiveness of a tion;
mercial real property; covered loan based on such reliance; and ‘‘(ii) review by the lender of an application
‘‘(V) an onsite or offsite health screening ‘‘(B) the lender acting in good faith shall submitted by the eligible recipient for loan
capability; or not be subject to any penalties relating to forgiveness under this section shall be lim-
‘‘(VI) other assets relating to the compli- origination or forgiveness of a covered loan ited to whether the lender received a com-
ance with the requirements or guidance de- based on such reliance.’’. plete application, with all fields completed,
scribed in subparagraph (A), as determined (f) SELECTION OF COVERED PERIOD FOR FOR- initialed, or signed, as applicable; and
GIVENESS.—Section 1106 of the CARES Act ‘‘(iii) the lender shall—
by the Administrator in consultation with
(15 U.S.C. 9005) is amended— ‘‘(I) accept the application submitted by
the Secretary of Health and Human Services
(1) by amending paragraph (4) of subsection the eligible recipient for loan forgiveness
and the Secretary of Labor; and
(a), as so redesignated by subsection (d) of under this section; and
‘‘(ii) the purchase of—
this section, to read as follows: ‘‘(II) submit the application to the Admin-
‘‘(I) covered materials described in section
‘‘(4) the term ‘covered period’ means the istrator.
328.103(a) of title 44, Code of Federal Regula-
period— ‘‘(B) AUDIT.—The Administrator may—
tions, or any successor regulation;
‘‘(A) beginning on the date of the origina- ‘‘(i) review and audit covered loans de-
‘‘(II) particulate filtering facepiece res-
tion of a covered loan; and scribed in subparagraph (A); and
pirators approved by the National Institute
‘‘(B) ending on a date selected by the eligi- ‘‘(ii) in the case of fraud, ineligibility, or
for Occupational Safety and Health, includ-
ble recipient of the covered loan that occurs other material noncompliance with applica-
ing those approved only for emergency use
during the period— ble loan or loan forgiveness requirements,
authorization; or
‘‘(i) beginning on the date that is 8 weeks modify—
‘‘(III) other kinds of personal protective
after such date of origination; and ‘‘(I) the amount of a covered loan described
equipment, as determined by the Adminis-
‘‘(ii) ending on December 31, 2020;’’; and in subparagraph (A); or
trator in consultation with the Secretary of
(2) by striking subsection (l). ‘‘(II) the loan forgiveness amount with re-
Health and Human Services and the Sec- (g) SIMPLIFIED APPLICATION.—Section 1106
retary of Labor; and spect to a covered loan described in subpara-
of the CARES Act (15 U.S.C. 9005), as amend- graph (A).
‘‘(C) does not include residential real prop- ed by subsection (f) of this section, is amend-
erty or intangible property;’’; and ‘‘(3) AUDIT PLAN.—
ed— ‘‘(A) IN GENERAL.—Not later than 30 days
(ix) in paragraph (11), as so redesignated— (1) in subsection (e), in the matter pre-
(I) in subparagraph (C), by striking ‘‘and’’ after the date of enactment of the Con-
ceding paragraph (1), by striking ‘‘An eligi- tinuing the Paycheck Protection Program
at the end; ble’’ and inserting ‘‘Except as provided in
(II) in subparagraph (D), by striking ‘‘and’’ Act, the Administrator shall submit to the
subsection (l), an eligible’’; Committee on Small Business and Entrepre-
at the end; and (2) in subsection (f), by inserting ‘‘or the
(III) by adding at the end the following: neurship of the Senate and the Committee
information required under subsection (l), as on Small Business of the House of Represent-
‘‘(E) covered operations expenditures; applicable’’ after ‘‘subsection (e)’’; and
‘‘(F) covered property damage costs; atives an audit plan that details—
(3) by adding at the end the following: ‘‘(i) the policies and procedures of the Ad-
‘‘(G) covered supplier costs; and ‘‘(l) SIMPLIFIED APPLICATION.—
‘‘(H) covered worker protection expendi- ministrator for conducting reviews and au-
‘‘(1) COVERED LOANS UNDER $150,000.— dits of covered loans; and
tures; and’’; ‘‘(A) IN GENERAL.—Notwithstanding sub-
(B) in subsection (b), by adding at the end ‘‘(ii) the metrics that the Administrator
section (e), with respect to a covered loan shall use to determine which covered loans
the following: made to an eligible recipient that is not
‘‘(5) Any covered operations expenditure. will be audited for each category of covered
more than $150,000, the covered loan amount loans described in paragraphs (1) and (2).
‘‘(6) Any covered property damage cost. shall be forgiven under this section if the eli-
‘‘(7) Any covered supplier cost. ‘‘(B) REPORTS.—Not later than 30 days
gible recipient— after the date on which the Administrator
‘‘(8) Any covered worker protection ex- ‘‘(i) signs and submits to the lender an at-
penditure.’’; submits the audit plan required under sub-
testation that the eligible recipient made a paragraph (A), and each month thereafter,
(C) in subsection (d)(8), by inserting ‘‘any good faith effort to comply with the require-
payment on any covered operations expendi- the Administrator shall submit to the Com-
ments under section 7(a)(36) of the Small mittee on Small Business and Entrepreneur-
ture, any payment on any covered property Business Act (15 U.S.C. 636(a)(36)); and
damage cost, any payment on any covered ship of the Senate and the Committee on
‘‘(ii) for the 1-year period following sub- Small Business of the House of Representa-
supplier cost, any payment on any covered mission of the attestation under clause (i),
worker protection expenditure,’’ after ‘‘rent tives a report on the review and audit activi-
retains records relevant to the attestation ties of the Administrator under this sub-
obligation,’’; and that prove compliance with those require-
(D) in subsection (e)— section, which shall include—
ments. ‘‘(i) the number of active reviews and au-
(i) in paragraph (2), by inserting ‘‘pay- ‘‘(B) DEMOGRAPHIC INFORMATION.—An eligi-
ments on covered operations expenditures, dits;
ble recipient of a covered loan described in ‘‘(ii) the number of reviews and audits that
payments on covered property damage costs, subparagraph (A) may complete and submit
payments on covered supplier costs, pay- have been ongoing for more than 60 days; and
any form related to borrower demographic ‘‘(iii) any substantial changes made to the
ments on covered worker protection expendi- information.
tures,’’ after ‘‘lease obligations,’’; and audit plan submitted under subparagraph
‘‘(C) AUDIT.—The Administrator may— (A).’’.
(ii) in paragraph (3)(B), by inserting ‘‘make ‘‘(i) review and audit covered loans de-
payments on covered operations expendi- (h) GROUP INSURANCE PAYMENTS AS PAY-
scribed in subparagraph (A); and ROLL COSTS.—Section
tures, make payments on covered property ‘‘(ii) in the case of fraud, ineligibility, or
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7(a)(36)(A)(viii)(I)(aa)(EE) of the Small Busi-
damage costs, make payments on covered other material noncompliance with applica- ness Act (15 U.S.C.
supplier costs, make payments on covered ble loan or loan forgiveness requirements, 636(a)(36)(A)(viii)(I)(aa)(EE)) is amended by
worker protection expenditures,’’ after ‘‘rent modify— inserting ‘‘and other group insurance’’ before
obligation,’’. ‘‘(I) the amount of a covered loan described ‘‘benefits’’.
(e) LENDER SAFE HARBOR.—Subsection (h) in subparagraph (A); or (i) PAYCHECK PROTECTION PROGRAM SECOND
of section 1106 of the CARES Act (15 U.S.C. ‘‘(II) the loan forgiveness amount with re- DRAW LOANS.—Section 7(a) of the Small
9005) is amended to read as follows: spect to a covered loan described in subpara- Business Act (15 U.S.C. 636(a)) is amended by
‘‘(h) HOLD HARMLESS.— graph (A). adding at the end the following:
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4755
‘‘(37) PAYCHECK PROTECTION PROGRAM SEC- ‘‘(AA) is a type of business concern de- ‘‘(BB) that retains, as a member of the
OND DRAW LOANS.— scribed in subsection (b), (c), (d), (e), (f), (h), board of directors of the business concern, a
‘‘(A) DEFINITIONS.—In this paragraph— (l) (m), (p), (q), (r), or (s) of section 120.110 of person who is a resident of the People’s Re-
‘‘(i) the terms ‘community financial insti- title 13, Code of Federal Regulations, or any public of China;
tutions’, ‘credit union’, ‘eligible self-em- successor regulation; ‘‘(vi) the terms ‘exchange’, ‘issuer’, and ‘se-
ployed individual’, ‘insured depository insti- ‘‘(BB) is a type of business concern de- curity’ have the meanings given those terms
tution’, ‘nonprofit organization’, ‘payroll scribed in section 120.110(g) of title 13, Code in section 3(a) of the Securities Exchange
costs’, ‘seasonal employer’, and ‘veterans or- of Federal Regulations, or any successor reg- Act of 1934 (15 U.S.C. 78c(a)); and
ganization’ have the meanings given those ulation, except as otherwise provided in the ‘‘(vii) the term ‘Tribal business concern’
terms in paragraph (36), except that ‘eligible interim final rule of the Administration en- means a Tribal business concern described in
entity’ shall be substituted for ‘eligible re- titled ‘Business Loan Program Temporary section 31(b)(2)(C).
cipient’ each place it appears in the defini- Changes; Paycheck Protection Program—Ad- ‘‘(B) LOANS.—Except as otherwise provided
tions of those terms; ditional Eligibility Criteria and Require- in this paragraph, the Administrator may
‘‘(ii) the term ‘covered loan’ means a loan ments for Certain Pledges of Loans’ (85 Fed. guarantee covered loans to eligible entities
made under this paragraph; Reg. 21747 (April 20, 2020)); under the same terms, conditions, and proc-
‘‘(iii) the terms ‘covered mortgage obliga- ‘‘(CC) is a type of business concern de- esses as a loan made under paragraph (36).
tion’, ‘covered operating expenditure’, ‘cov- scribed in section 120.110(i) of title 13, Code of ‘‘(C) MAXIMUM LOAN AMOUNT.—
ered property damage cost’, ‘covered rent ob- Federal Regulations, or any successor regu- ‘‘(i) IN GENERAL.—Except as otherwise pro-
vided in this subparagraph, the maximum
ligation’, ‘covered supplier cost’, ‘covered lation, except if the business concern is an
amount of a covered loan made to an eligible
utility payment’, and ‘covered worker pro- organization described in paragraph
entity is the lesser of—
tection expenditure’ have the meanings (36)(D)(vii);
‘‘(I) the product obtained by multiplying—
given those terms in section 1106(a) of the ‘‘(DD) is a type of business concern de-
‘‘(aa) at the election of the eligible entity,
CARES Act (15 U.S.C. 9005(a)); scribed in section 120.110(j) of title 13, Code of
the average total monthly payment for pay-
‘‘(iv) the term ‘covered period’ means the Federal Regulations, or any successor regu-
roll costs incurred or paid by the eligible en-
period beginning on the date of the origina- lation, except as otherwise provided in the tity during—
tion of a covered loan and ending on Decem- interim final rules of the Administration en- ‘‘(AA) the 1-year period before the date on
ber 31, 2020; titled ‘Business Loan Program Temporary which the loan is made; or
‘‘(v) the term ‘eligible entity’— Changes; Paycheck Protection Program— ‘‘(BB) calendar year 2019; by
‘‘(I) means any business concern, nonprofit Eligibility of Certain Electric Cooperatives’ ‘‘(bb) 2.5; or
organization, veterans organization, Tribal (85 Fed. Reg. 29847 (May 19, 2020)) and ‘Busi- ‘‘(II) $2,000,000.
business concern, eligible self-employed indi- ness Loan Program Temporary Changes; ‘‘(ii) SEASONAL EMPLOYERS.—The maximum
vidual, sole proprietor, independent con- Paycheck Protection Program—Eligibility amount of a covered loan made to an eligible
tractor, or small agricultural cooperative of Certain Telephone Cooperatives’ (85 Fed. entity that is a seasonal employer is the
that— Reg. 35550 (June 11, 2020)) or any other guid- lesser of—
‘‘(aa)(AA) with respect to a business con- ance or rule issued or that may be issued by ‘‘(I) the product obtained by multiplying—
cern, would qualify as a small business con- the Administrator; ‘‘(aa) at the election of the eligible entity,
cern by the annual receipts size standard (if ‘‘(EE) is a type of business concern de- the average total monthly payments for pay-
applicable) established by section 121.201 of scribed in section 120.110(n) of title 13, Code roll costs incurred or paid by the eligible en-
title 13, Code of Federal Regulations, or any of Federal Regulations, or any successor reg- tity—
successor regulation; or ulation, except as otherwise provided in the ‘‘(AA) for a 12-week period beginning Feb-
‘‘(BB) if the entity does not qualify as a interim final rule of the Administration en- ruary 15, 2019 or March 1, 2019 and ending
small business concern, meets the alter- titled ‘Business Loan Program Temporary June 30, 2019; or
native size standard established under sec- Changes; Paycheck Protection Program—Ad- ‘‘(BB) for a consecutive 12-week period be-
tion 3(a)(5); ditional Eligibility Revisions to First In- tween May 1, 2019 and September 15, 2019; by
‘‘(bb) employs not more than 300 employ- terim Final Rule’ (85 Fed. Reg. 38301 (June ‘‘(bb) 2.5; or
ees; and 26, 2020)) or any other guidance or rule issued ‘‘(II) $2,000,000.
‘‘(cc)(AA) except as provided in subitems or that may be issued by the Administrator; ‘‘(iii) NEW ENTITIES.—The maximum
(BB), (CC), and (DD), had gross receipts dur- ‘‘(FF) is a type of business concern de- amount of a covered loan made to an eligible
ing the first or second quarter in 2020 that scribed in section 120.110(o) of title 13, Code entity that did not exist during the 1-year
are not less than 35 percent less than the of Federal Regulations, or any successor reg- period preceding February 15, 2020 is the less-
gross receipts of the entity during the same ulation, except as otherwise provided in any er of—
quarter in 2019; guidance or rule issued or that may be issued ‘‘(I) the product obtained by multiplying—
‘‘(BB) if the entity was not in business dur- by the Administrator; or ‘‘(aa) the quotient obtained by dividing—
ing the first or second quarter of 2019, but ‘‘(GG) is an entity that is organized for re- ‘‘(AA) the sum of the total monthly pay-
was in business during the third and fourth search or for engaging in advocacy in areas ments by the eligible entity for payroll costs
quarter of 2019, had gross receipts during the such as public policy or political strategy or paid or incurred by the eligible entity as of
first or second quarter of 2020 that are less otherwise describes itself as a think tank in the date on which the eligible entity applies
than 35 percent of the amount of the gross any public documents; for the covered loan; by
receipts of the entity during the third or ‘‘(HH) is an entity that would be described ‘‘(BB) the number of months in which
fourth quarter of 2019; in the subsections listed in subitems (AA) those payroll costs were paid or incurred; by
‘‘(CC) if the entity was not in business dur- through (GG) if the entity were a business ‘‘(bb) 2.5; or
ing the first, second, or third quarter of 2019, concern; or ‘‘(II) $2,000,000.
but was in business during the fourth quarter ‘‘(II) is assigned, or was approved for a loan ‘‘(iv) LIMIT FOR MULTIPLE LOCATIONS.—With
of 2019, had gross receipts during the first or under paragraph (36) with, a North American respect to an eligible entity with more than
second quarter of 2020 that are less than 35 Industry Classification System code begin- 1 physical location, the total amount of all
percent of the amount of the gross receipts ning with 52; covered loans shall be not more than
of the entity during the fourth quarter of ‘‘(cc) any business concern or entity pri- $2,000,000.
2019; or marily engaged in political or lobbying ac- ‘‘(v) LOAN NUMBER LIMITATION.—An eligible
‘‘(DD) if the entity was not in business dur- tivities, which shall include any entity that entity may only receive 1 covered loan.
ing 2019, but was in operation on February is organized for research or for engaging in ‘‘(vi) 90 DAY RULE FOR MAXIMUM LOAN
15, 2020, had gross receipts during the second advocacy in areas such as public policy or AMOUNT.—The maximum aggregate loan
quarter of 2020 that are less than 35 percent political strategy or otherwise describes amount of loans guaranteed under this sub-
of the amount of the gross receipts of the en- itself as a think tank in any public docu- section that are approved for an eligible en-
tity during the first quarter of 2020; ments; or tity (including any affiliates) within 90 days
‘‘(II) includes an organization described in ‘‘(dd) any business concern or entity— of approval of another loan under this sub-
subparagraph (D)(vii) of paragraph (36) that ‘‘(AA) for which an entity created in or or- section for the eligible entity (including any
is eligible to receive a loan under that para- ganized under the laws of the People’s Re- affiliates) shall not exceed $10,000,000.
graph and that meets the requirements de- public of China or the Special Administra- ‘‘(D) EXCEPTION FROM CERTAIN CERTIFI-
scribed in items (aa) and (cc) of subclause (I); tive Region of Hong Kong, or that has sig- CATION REQUIREMENTS.—An eligible entity
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and nificant operations in the People’s Republic applying for a covered loan shall not be re-
‘‘(III) does not include— of China or the Special Administrative Re- quired to make the certification described in
‘‘(aa) an issuer, the securities of which are gion of Hong Kong, owns or holds, directly or subclause (III) or (IV) of paragraph (36)(G)(i).
listed on an exchange registered a national indirectly, not less than 20 percent of the ‘‘(E) FEE WAIVER.—With respect to a cov-
securities exchange under section 6 of the economic interest of the business concern or ered loan—
Securities Exchange Act of 1934 (15 U.S.C. entity, including as equity shares or a cap- ‘‘(i) in lieu of the fee otherwise applicable
78f); ital or profit interest in a limited liability under paragraph (23)(A), the Administrator
‘‘(bb) any entity that— company or partnership; or shall collect no fee; and
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S4756 CONGRESSIONAL RECORD — SENATE August 4, 2020
‘‘(ii) in lieu of the fee otherwise applicable may make covered loans under the same (1) DEFINITIONS.—In this subsection, the
under paragraph (18)(A), the Administrator terms and conditions as in paragraph (36). terms ‘‘covered loan’’ and ‘‘eligible recipi-
shall collect no fee. ‘‘(J) REIMBURSEMENT FOR LOAN PROCESSING ent’’ have the meanings given those terms in
‘‘(F) ELIGIBLE CHURCHES AND RELIGIOUS OR- AND SERVICING.—The Administrator shall re- section 7(a)(36) of the Small Business Act (15
GANIZATIONS.— imburse a lender authorized to make a cov- U.S.C. 636(a)(36)).
‘‘(i) SENSE OF CONGRESS.—It is the sense of ered loan in an amount that is— (2) INCREASED AMOUNT.—Notwithstanding
Congress that the interim final rule of the ‘‘(i) 3 percent of the principal amount of the interim final rule issued by the Adminis-
Administration entitled ‘Business Loan Pro- the financing of the covered loan up to tration entitled ‘‘Business Loan Program
gram Temporary Changes; Paycheck Protec- $350,000; and Temporary Changes; Paycheck Protection
tion Program’ (85 Fed. Reg. 20817 (April 15, ‘‘(ii) 1 percent of the principal amount of Program—Loan Increases’’ (85 Fed. Reg.
2020)) properly clarified the eligibility of the financing of the covered loan above 29842 (May 19, 2020)), an eligible recipient of
churches and religious organizations for $350,000, if applicable. a covered loan that is eligible for an in-
loans made under paragraph (36). ‘‘(K) SET ASIDE FOR SMALL ENTITIES.—Not creased covered loan amount as a result of
‘‘(ii) APPLICABILITY OF PROHIBITION.—The less than $25,000,000,000 of the total amount any interim final rule that allows for cov-
prohibition on eligibility established by sec- of covered loans guaranteed by the Adminis- ered loan increases may submit a request for
tion 120.110(k) of title 13, Code of Federal trator shall be made to eligible entities with an increase in the covered loan amount even
Regulations, or any successor regulation, not more than 10 employees as of February if—
shall not apply to a covered loan. 15, 2020. (A) the initial covered loan amount has
‘‘(L) SET ASIDE FOR COMMUNITY FINANCIAL been fully disbursed; or
‘‘(G) GROSS RECEIPTS FOR NONPROFIT AND
INSTITUTIONS, SMALL INSURED DEPOSITORY IN- (B) the lender of the initial covered loan
VETERANS ORGANIZATIONS.—For purposes of
STITUTIONS, CREDIT UNIONS, AND FARM CREDIT has submitted to the Administration a Form
calculating gross receipts under subpara-
SYSTEM INSTITUTIONS.—Not less than 1502 report related to the covered loan.
graph (A)(v)(I)(cc) for an eligible entity that (l) CALCULATION OF MAXIMUM LOAN AMOUNT
$10,000,000,000 of the total amount of covered
is a nonprofit organization, a veterans orga- FOR FARMERS AND RANCHERS UNDER THE PAY-
loans guaranteed by the Administrator shall
nization, or an organization described in sub- CHECK PROTECTION PROGRAM.—
be made by—
paragraph (A)(v)(II), gross receipts— ‘‘(i) community financial institutions; (1) IN GENERAL.—Section 7(a)(36) of the
‘‘(i) shall include proceeds from fund- ‘‘(ii) insured depository institutions with Small Business Act (15 U.S.C. 636(a)(36)), as
raising events, federated campaigns, gifts, consolidated assets of less than amended by subsection (j) of this section, is
donor-advised funds, and funds from similar $10,000,000,000; amended—
sources; and ‘‘(iii) credit unions with consolidated as- (A) in subparagraph (E), in the matter pre-
‘‘(ii) shall not include— sets of less than $10,000,000,000; and ceding clause (i), by striking ‘‘During’’ and
‘‘(I) Federal grants (excluding any loan for- ‘‘(iv) institutions of the Farm Credit Sys- inserting ‘‘Except as provided in subpara-
giveness on loans received under paragraph tem chartered under the Farm Credit Act of graph (T), during’’; and
(36) or this paragraph); 1971 (12 U.S.C. 2001 et seq.) with consolidated (B) by adding at the end the following:
‘‘(II) revenues from a supporting organiza- assets of less than $10,000,000,000 (not includ- ‘‘(T) CALCULATION OF MAXIMUM LOAN
tion; ing the Federal Agricultural Mortgage Cor- AMOUNT FOR FARMERS AND RANCHERS.—
‘‘(III) grants from private foundations that poration). ‘‘(i) DEFINITION.—In this subparagraph, the
are disbursed over the course of more than 1 ‘‘(M) PUBLICATION OF GUIDANCE.—Not later term ‘covered recipient’ means an eligible
calendar year; or than 10 days after the date of enactment of recipient that—
‘‘(IV) any contribution of property other this paragraph, the Administrator shall issue ‘‘(I) operates as a sole proprietorship or as
than money, stocks, bonds, and other securi- guidance addressing barriers to accessing an independent contractor, or is an eligible
ties, provided that the non-cash contribution capital for minority, underserved, veteran, self-employed individual;
is not sold by the organization in a trans- and women-owned business concerns for the ‘‘(II) reports farm income or expenses on a
action unrelated to the tax-exempt purpose purpose of ensuring equitable access to cov- Schedule F (or any equivalent successor
of the organization. ered loans. schedule); and
‘‘(H) LOAN FORGIVENESS.— ‘‘(N) STANDARD OPERATING PROCEDURE.— ‘‘(III) was in business during the period be-
‘‘(i) IN GENERAL.—Except as otherwise pro- The Administrator shall, to the maximum ginning on February 15, 2019 and ending on
vided in this subparagraph, an eligible entity extent practicable, allow a lender approved June 30, 2019.
shall be eligible for forgiveness of indebted- to make covered loans to use existing pro- ‘‘(ii) NO EMPLOYEES.—With respect to cov-
ness on a covered loan in the same manner gram guidance and standard operating proce- ered recipient without employees, the max-
as an eligible recipient with respect to a loan dures for loans made under this subsection. imum covered loan amount shall be the less-
made under paragraph (36), as described in ‘‘(O) PROHIBITION ON USE OF PROCEEDS FOR er of—
section 1106 of the CARES Act (15 U.S.C. LOBBYING ACTIVITIES.—None of the proceeds ‘‘(I) the sum of—
9005). of a covered loan may be used for— ‘‘(aa) the product obtained by multi-
‘‘(ii) FORGIVENESS AMOUNT.—An eligible en- ‘‘(i) lobbying activities, as defined in sec- plying—
tity shall be eligible for forgiveness of in- tion 3 of the Lobbying Disclosure Act of 1995 ‘‘(AA) the gross income of the covered re-
debtedness on a covered loan in an amount (2 U.S.C. 1602); cipient in 2019, as reported on a Schedule F
equal to the sum of the following costs in- ‘‘(ii) lobbying expenditures related to a (or any equivalent successor schedule), that
curred or expenditures made during the cov- State or local election; or is not more than $100,000, divided by 12; and
ered period: ‘‘(iii) expenditures designed to influence ‘‘(BB) 2.5; and
‘‘(I) Payroll costs. the enactment of legislation, appropriations, ‘‘(bb) the outstanding amount of a loan
‘‘(II) Any payment of interest on any cov- regulation, administrative action, or Execu- under subsection (b)(2) that was made during
ered mortgage obligation (which shall not in- tive order proposed or pending before Con- the period beginning on January 31, 2020 and
clude any prepayment of or payment of prin- gress or any State government, State legis- ending on April 3, 2020 that the borrower in-
cipal on a covered mortgage obligation). lature, or local legislature or legislative tends to refinance under the covered loan,
‘‘(III) Any covered operations expenditure. body.’’. not including any amount of any advance
‘‘(IV) Any covered property damage cost. (j) CONTINUED ACCESS TO THE PAYCHECK under the loan that is not required to be re-
‘‘(V) Any payment on any covered rent ob- PROTECTION PROGRAM.— paid; or
ligation. (1) IN GENERAL.—Section 7(a)(36)(E)(ii) of ‘‘(II) $2,000,000.
‘‘(VI) Any covered utility payment. the Small Business Act (15 U.S.C. ‘‘(iii) WITH EMPLOYEES.—With respect to a
‘‘(VII) Any covered supplier cost. 636(a)(36)(E)(ii)) is amended by striking covered recipient with employees, the max-
‘‘(VIII) Any covered worker protection ex- ‘‘$10,000,000’’ and inserting ‘‘$2,000,000’’. imum covered loan amount shall be cal-
penditure. (2) APPLICABILITY OF MAXIMUM LOAN culated using the formula described in sub-
‘‘(iii) LIMITATION ON FORGIVENESS FOR ALL AMOUNT CALCULATION.— paragraph (E), except that the gross income
ELIGIBLE ENTITIES.—The forgiveness amount (A) DEFINITIONS.—In this paragraph, the of the covered recipient described in clause
under this subparagraph shall be equal to the terms ‘‘covered loan’’ and ‘‘eligible recipi- (ii)(I)(aa)(AA) of this subparagraph, as di-
lesser of— ent’’ have the meanings given those terms in vided by 12, shall be added to the sum cal-
‘‘(I) the amount described in clause (ii); section 7(a)(36) of the Small Business Act (15 culated under subparagraph (E)(i)(I).
and U.S.C. 636(a)(36)). ‘‘(iv) RECALCULATION.—A lender that made
‘‘(II) the amount equal to the quotient ob- a covered loan to a covered recipient before
SSpencer on DSK126QN23PROD with SENATE
(B) APPLICABILITY.—The amendment made
tained by dividing— by paragraph (1) shall apply only with re- the date of enactment of this subparagraph
‘‘(aa) the amount of the covered loan used spect to a covered loan applied for by an eli- may, at the request of the covered recipi-
for payroll costs during the covered period; gible recipient on or after the date of enact- ent—
and ment of this Act. ‘‘(I) recalculate the maximum loan amount
‘‘(bb) 0.60. (k) INCREASED ABILITY FOR PAYCHECK PRO- applicable to that covered loan based on the
‘‘(I) LENDER ELIGIBILITY.—Except as other- TECTION PROGRAM BORROWERS TO REQUEST AN formula described in clause (ii) or (iii), as ap-
wise provided in this paragraph, a lender ap- INCREASE IN LOAN AMOUNT DUE TO UPDATED plicable, if doing so would result in a larger
proved to make loans under paragraph (36) REGULATIONS.— covered loan amount; and
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4757
‘‘(II) provide the covered recipient with ad- (I) in subclause (II), by striking ‘‘and’’ at ‘‘(AA) is described in section 501(c) of the
ditional covered loan amounts based on that the end; Internal Revenue Code and is exempt from
recalculation.’’. (II) in subclause (III), by striking the pe- taxation under section 501(a) of such Code; or
(m) FARM CREDIT SYSTEM INSTITUTIONS.— riod at the end and inserting ‘‘; and’’; and ‘‘(BB) is a quasi-governmental entity or is
(1) DEFINITION OF FARM CREDIT SYSTEM IN- (III) by adding at the end the following: a political subdivision of a State or local
STITUTION.—In this subsection, the term ‘‘(IV) institutions of the Farm Credit Sys- government, including any instrumentality
‘‘Farm Credit System institution’’— tem chartered under the Farm Credit Act of of those entities.’’.
(A) means an institution of the Farm Cred- 1971 (12 U.S.C. 2001 et seq.) with consolidated (p) PROHIBITION ON USE OF LOAN PROCEEDS
it System chartered under the Farm Credit assets of less than $10,000,000,000.’’. FOR LOBBYING ACTIVITIES.—Section
Act of 1971 (12 U.S.C. 2001 et seq.); and (n) DEFINITION OF SEASONAL EMPLOYER.— 7(a)(36)(F) of the Small Business Act (15
(B) does not include the Federal Agricul- (1) PPP LOANS.—Section 7(a)(36)(A) of the U.S.C. 636(a)(36)(F)) is amended by adding at
Small Business Act (15 U.S.C. 636(a)(36)(A)) is the end the following:
tural Mortgage Corporation.
amended— ‘‘(vi) PROHIBITION.—None of the proceeds of
(2) FACILITATION OF PARTICIPATION IN PPP
(A) in clause (xi), by striking ‘‘and’’ at the a covered loan may be used for—
AND SECOND DRAW LOANS.—
end; ‘‘(I) lobbying activities, as defined in sec-
(A) APPLICABLE RULES.—Solely with re-
(B) in clause (xii), by striking the period at tion 3 of the Lobbying Disclosure Act of 1995
spect to loans under paragraphs (36) and (37)
the end and inserting ‘‘; and’’; and (2 U.S.C. 1602);
of section 7(a) of the Small Business Act (15
(C) by adding at the end the following: ‘‘(II) lobbying expenditures related to a
U.S.C. 636(a)), Farm Credit Administration
‘‘(xiii) the term ‘seasonal employer’ means State or local election; or
regulations and guidance issued as of July
an eligible recipient that— ‘‘(III) expenditures designed to influence
14, 2020, and compliance with such regula-
‘‘(I) does not operate for more than 7 the enactment of legislation, appropriations,
tions and guidance, shall be deemed func-
months in any calendar year; or regulation, administrative action, or Execu-
tionally equivalent to requirements ref-
‘‘(II) during the preceding calendar year, tive order proposed or pending before Con-
erenced in section 3(a)(iii)(II) of the interim
had gross receipts for any 6 months of that gress or any State government, State legis-
final rule of the Administration entitled
year that were not more than 33.33 percent of lature, or local legislature or legislative
‘‘Business Loan Program Temporary
the gross receipts of the employer for the body.’’.
Changes; Paycheck Protection Program’’ (85
other 6 months of that year.’’. (q) EFFECTIVE DATE; APPLICABILITY.—The
Fed. Reg. 20811 (April 15, 2020)) or any similar amendments made to paragraph (36) of sec-
requirement referenced in that interim final (2) LOAN FORGIVENESS.—Paragraph (12) of
tion 7(a) of the Small Business Act (15 U.S.C.
rule in implementing such paragraph (37). section 1106(a) of the CARES Act (15 U.S.C.
636(a)) and title I of the CARES Act (Public
(B) APPLICABILITY OF CERTAIN LOAN RE- 9005(a)), as so redesignated by subsection
Law 116–136) under this section shall be effec-
QUIREMENTS.—For purposes of making loans (d)(2) of this section, is amended to read as
tive as if included in the CARES Act and
under paragraph (36) or (37) of section 7(a) of follows: shall apply to any loan made pursuant to
the Small Business Act (15 U.S.C. 636(a)) or ‘‘(12) the terms ‘payroll costs’ and ‘sea- section 7(a)(36) of the Small Business Act (15
forgiving those loans in accordance with sec- sonal employer’ have the meanings given U.S.C. 636(a)(36)).
tion 1106 of the CARES Act (15 U.S.C. 9005) those terms in section 7(a)(36) of the Small (r) BANKRUPTCY PROVISIONS.—
and subparagraph (H) of such paragraph (37), Business Act (15 U.S.C. 636(a)(36)).’’. (1) IN GENERAL.—Section 364 of title 11,
sections 4.13, 4.14, and 4.14A of the Farm (o) ELIGIBILITY OF 501(C)(6) ORGANIZATIONS United States Code, is amended by adding at
Credit Act of 1971 (12 U.S.C. 2199, 2202, 2202a) FOR LOANS UNDER THE PAYCHECK PROTECTION the end the following:
(including regulations issued under those PROGRAM.—Section 7(a)(36)(D) of the Small ‘‘(g)(1) The court, after notice and a hear-
sections) shall not apply. Business Act (15 U.S.C. 636(a)(36)(D)) is ing, may authorize a debtor in possession or
(C) RISK WEIGHT.— amended— a trustee that is authorized to operate the
(i) IN GENERAL.—With respect to the appli- (1) in clause (v), by inserting ‘‘or whether business of the debtor under section 1183,
cation of Farm Credit Administration cap- an organization described in clause (vii) em- 1184, 1203, 1204, or 1304 of this title to obtain
ital requirements, a loan described in clause ploys not more than 150 employees,’’ after a loan under paragraph (36) or (37) of section
(ii)— ‘‘clause (i)(I),’’; 7(a) of the Small Business Act (15 U.S.C.
(I) shall receive a risk weight of zero per- (2) in clause (vi), by inserting ‘‘, an organi- 636(a)), and such loan shall be treated as a
cent; and zation described in clause (vii),’’ after ‘‘non- debt to the extent the loan is not forgiven in
(II) shall not be included in the calculation profit organization’’; and accordance with section 1106 of the CARES
of any applicable leverage ratio or other ap- (3) by adding at the end the following: Act (15 U.S.C. 9005) or subparagraph (H) of
plicable capital ratio or calculation. ‘‘(vii) ELIGIBILITY FOR CERTAIN 501(C)(6) OR- such paragraph (37), as applicable, with pri-
(ii) LOANS DESCRIBED.—A loan referred to GANIZATIONS.— ority equal to a claim of the kind specified
in clause (i) is— ‘‘(I) IN GENERAL.—Except as provided in in subsection (c)(1) of this section.
(I) a loan made by a Farm Credit Bank de- subclause (II), any organization that is de- ‘‘(2) The trustee may incur debt described
scribed in section 1.2(a) of the Farm Credit scribed in section 501(c)(6) of the Internal in paragraph (1) notwithstanding any provi-
Act of 1971 (12 U.S.C. 2002(a)) to a Federal Revenue Code and that is exempt from tax- sion in a contract, prior order authorizing
the trustee to incur debt under this section,
Land Bank Association, a Production Credit ation under section 501(a) of such Code (ex-
prior order authorizing the trustee to use
Association, or an agricultural credit asso- cluding professional sports leagues and orga-
cash collateral under section 363, or applica-
ciation described in that section to make nizations with the purpose of promoting or
ble law that prohibits the debtor from incur-
loans under paragraph (36) or (37) of section participating in a political campaign or
ring additional debt.
7(a) of the Small Business Act (15 U.S.C. other activity) shall be eligible to receive a ‘‘(3) The court shall hold a hearing within
636(a)) or forgive those loans in accordance covered loan if— 7 days after the filing and service of the mo-
with section 1106 of the CARES Act (15 ‘‘(aa) the organization does not receive tion to obtain a loan described in paragraph
U.S.C. 9005) and subparagraph (H) of such more than 10 percent of its receipts from lob- (1).’’.
paragraph (37); or bying activities; (2) ALLOWANCE OF ADMINISTRATIVE EX-
(II) a loan made by a Federal Land Bank ‘‘(bb) the lobbying activities of the organi- PENSES.—Section 503(b) of title 11, United
Association, a Production Credit Associa- zation do not comprise more than 10 percent States Code, is amended—
tion, an agricultural credit association, or of the total activities of the organization; (A) in paragraph (8)(B), by striking ‘‘and’’
the bank for cooperatives described in sec- and at the end;
tion 1.2(a) of the Farm Credit Act of 1971 (12 ‘‘(cc) the organization employs not more (B) in paragraph (9), by striking the period
U.S.C. 2002(a)) under paragraph (36) or (37) of than 150 employees. at the end and inserting ‘‘; and’’; and
section 7(a) of the Small Business Act (15 ‘‘(II) DESTINATION MARKETING ORGANIZA- (C) by adding at the end the following:
U.S.C. 636(a)). TIONS.—Notwithstanding subclause (I), dur- ‘‘(10) any debt incurred under section
(D) RESERVATION OF LOAN GUARANTEES.— ing the covered period, any destination mar- 364(g)(1) of this title.’’.
Section 7(a)(36)(S) of the Small Business Act keting organization shall be eligible to re- (3) CONFIRMATION OF PLAN FOR REORGANIZA-
(15 U.S.C. 636(a)(36)(S)) is amended— ceive a covered loan if— TION.—Section 1191 of title 11, United States
(i) in clause (i)— ‘‘(aa) the destination marketing organiza- Code, is amended by adding at the end the
(I) in subclause (I), by striking ‘‘and’’ at tion does not receive more than 10 percent of following:
the end; its receipts from lobbying activities; ‘‘(f) SPECIAL PROVISION RELATED TO
(II) in subclause (II), by striking the period ‘‘(bb) the lobbying activities of the destina-
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COVID–19 PANDEMIC.—Notwithstanding sec-
at the end and inserting ‘‘; and’’; and tion marketing organization do not comprise tion 1129(a)(9)(A) of this title and subsection
(III) by adding at the end the following: more than 10 percent of the total activities (e) of this section, a plan that provides for
‘‘(III) institutions of the Farm Credit Sys- of the organization; payment of a claim of a kind specified in sec-
tem chartered under the Farm Credit Act of ‘‘(cc) the destination marketing organiza- tion 503(b)(10) of this title may be confirmed
1971 (12 U.S.C. 2001 et seq.) with consolidated tion employs not more than 150 employees; under subsection (b) of this section if the
assets of not less than $10,000,000,000 and less and plan proposes to make payments on account
than $50,000,000,000.’’; and ‘‘(dd) the destination marketing organiza- of such claim when due under the terms of
(ii) in clause (ii)— tion— the loan giving rise to such claim.’’.
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S4758 CONGRESSIONAL RECORD — SENATE August 4, 2020
(4) CONFIRMATION OF PLAN FOR FAMILY day period or, if applicable, later period de- section, on or after the date of enactment of
FARMERS AND FISHERMEN.—Section 1225 of scribed in that clause, the Administrator this Act; and
title 11, United States Code, is amended by shall, during that 30-day (or later) period, (B) shall not apply with respect to—
adding at the end the following: submit to the Committee on Small Business (i) any transaction described in subpara-
‘‘(d) Notwithstanding section 1222(a)(2) of and Entrepreneurship of the Senate and the graph (A) that was made before the date of
this title and subsection (b)(1) of this sec- Committee on Small Business of the House enactment of this Act; or
tion, a plan that provides for payment of a of Representatives a notification that in- (ii) forgiveness under section 1106 of the
claim of a kind specified in section 503(b)(10) cludes a detailed justification for the inabil- CARES Act (15 U.S.C. 9005) or any other pro-
of this title may be confirmed if the plan ity of the Administrator to comply with the vision of law of any loan associated with any
proposes to make payments on account of request or inquiry. transaction described in subparagraph (A)
such claim when due under the terms of the (2) TESTIMONY.—Not later than the date that was made before the date of enactment
loan giving rise to such claim.’’. that is 30 days after the date of enactment of of this Act.
(5) CONFIRMATION OF PLAN FOR INDIVID- this Act, and every quarter thereafter until
UALS.—Section 1325 of title 11, United States (u) COMMITMENT AUTHORITY AND APPRO-
the date that is 2 years after the date of en-
Code, is amended by adding at the end the PRIATIONS.—
actment of this Act, the Administrator and
following: the Secretary of the Treasury shall testify (1) COMMITMENT AUTHORITY.—Section
‘‘(d) Notwithstanding section 1322(a)(2) of 1102(b) of the CARES Act (Public Law 116–
before the Committee on Small Business and
this title and subsection (b)(1) of this sec- 136) is amended—
Entrepreneurship of the Senate and the Com-
tion, a plan that provides for payment of a (A) in paragraph (1)—
mittee on Small Business of the House of
claim of a kind specified in section 503(b)(10) (i) in the paragraph heading, by inserting
Representatives regarding implementation
of this title may be confirmed if the plan ‘‘AND SECOND DRAW’’ after ‘‘PPP’’;
proposes to make payments on account of of this section and the amendments made by
this section. (ii) by striking ‘‘August 8, 2020’’ and insert-
such claim when due under the terms of the ing ‘‘December 31, 2020’’;
loan giving rise to such claim.’’. (t) CONFLICTS OF INTEREST.—
(iii) by striking ‘‘paragraph (36)’’ and in-
(6) EFFECTIVE DATE; SUNSET.— (1) DEFINITIONS.—In this subsection:
serting ‘‘paragraphs (36) and (37)’’; and
(A) EFFECTIVE DATE.—The amendments (A) CONTROLLING INTEREST.—The term
(iv) by striking ‘‘$659,000,000,000’’ and in-
made by paragraphs (1) through (5) shall— ‘‘controlling interest’’ means owning, con-
serting ‘‘$816,690,000,000’’; and
(i) take effect on the date on which the Ad- trolling, or holding not less than 20 percent,
(B) by amending paragraph (2) to read as
ministrator submits to the Director of the by vote or value, of the outstanding amount
follows:
Executive Office for United States Trustees a of any class of equity interest in an entity.
(B) COVERED ENTITY.— ‘‘(2) OTHER 7(A) LOANS.—During fiscal year
written determination that, subject to satis-
(i) DEFINITION.—The term ‘‘covered entity’’ 2020, the amount authorized for commit-
fying any other eligibility requirements, any
means an entity in which a covered indi- ments for section 7(a) of the Small Business
debtor in possession or trustee that is au-
vidual directly or indirectly holds a control- Act (15 U.S.C. 636(a)) under the heading
thorized to operate the business of the debt-
ling interest. ‘Small Business Administration—Business
or under section 1183, 1184, 1203, 1204, or 1304
(ii) TREATMENT OF SECURITIES.—For the Loans Program Account’ in the Financial
of title 11, United States Code, would be eli-
purpose of determining whether an entity is Services and General Government Appropria-
gible for a loan under paragraphs (36) and (37)
a covered entity, the securities owned, con- tions Act, 2020 (division C of Public Law 116–
of section 7(a) of the Small Business Act (15
trolled, or held by 2 or more individuals who 193) shall apply with respect to any commit-
U.S.C. 636(a)); and
are related as described in subparagraph ments under such section 7(a) other than
(ii) apply to any case pending on or com-
(C)(ii) shall be aggregated. under paragraphs (36) and (37) of such section
menced on or after the date described in
(C) COVERED INDIVIDUAL.—The term ‘‘cov- 7(a).’’.
clause (i).
ered individual’’ means— (2) DIRECT APPROPRIATIONS.—
(B) SUNSET.—
(i) the President, the Vice President, the (A) RESCISSION.—With respect to unobli-
(i) IN GENERAL.—If the amendments made
head of an Executive department, or a Mem- gated balances under the heading ‘‘ ‘Small
by this subsection take effect under subpara-
ber of Congress; and Business Administration—Business Loans
graph (A), effective on the date that is 2
(ii) the spouse, child, son-in-law, or daugh- Program Account, CARES Act’’ as of the day
years after the date of enactment of this
ter-in-law, as determined under applicable before the date of enactment of this Act,
Act—
common law, of an individual described in $100,000,000,000 shall be rescinded and depos-
(I) section 364 of title 11, United States
clause (i). ited into the general fund of the Treasury.
Code, is amended by striking subsection (g);
(D) EXECUTIVE DEPARTMENT.—The term (B) NEW DIRECT APPROPRIATIONS FOR PPP
(II) section 503(b) of title 11, United States
LOANS, SECOND DRAW LOANS, AND THE MBDA.—
Code, is amended— ‘‘Executive department’’ has the meaning
given the term in section 101 of title 5, (i) PPP AND SECOND DRAW LOANS.—There is
(aa) in paragraph (8)(B), by adding ‘‘and’’
United States Code. appropriated, out of amounts in the Treas-
at the end;
(E) MEMBER OF CONGRESS.—The term ury not otherwise appropriated, for the fiscal
(bb) in paragraph (9), by striking ‘‘; and’’ at
‘‘Member of Congress’’ means a Member of year ending September 30, 2020, to remain
the end and inserting a period; and
the Senate or House of Representatives, a available until September 30, 2021, for addi-
(cc) by striking paragraph (10);
Delegate to the House of Representatives, tional amounts—
(III) section 1191 of title 11, United States
and the Resident Commissioner from Puerto (I) $257,690,000,000 under the heading
Code, is amended by striking subsection (f);
Rico. ‘‘Small Business Administration—Business
(IV) section 1225 of title 11, United States
(F) EQUITY INTEREST.—The term ‘‘equity Loans Program Account, CARES Act’’ for
Code, is amended by striking subsection (d);
interest’’ means— the cost of guaranteed loans as authorized
and
(i) a share in an entity, without regard to under paragraph (36) and (37) of section 7(a)
(V) section 1325 of title 11, United States
whether the share is— of the Small Business Act (15 U.S.C. 636(a)),
Code, is amended by striking subsection (d).
(I) transferable; or as amended and added by this Act; and
(ii) APPLICABILITY.—Notwithstanding the
(II) classified as stock or anything similar; (II) $10,000,000 under the heading under the
amendments made by clause (i) of this sub-
(ii) a capital or profit interest in a limited heading ‘‘Department of Commerce—Minor-
paragraph, if the amendments made by para-
liability company or partnership; or ity Business Development Agency’’ for mi-
graphs (1), (2), (3), (4), and (5) take effect
(iii) a warrant or right, other than a right nority business centers of the Minority Busi-
under subparagraph (A) of this paragraph,
to convert, to purchase, sell, or subscribe to ness Development Agency to provide tech-
such amendments shall apply to any case
a share or interest described in clause (i) or nical assistance to small business concerns.
under title 11, United States Code, com-
(ii), respectively. (C) AVAILABILITY OF AMOUNTS APPRO-
menced before the date that is 2 years after
PRIATED FOR THE OFFICE OF INSPECTOR GEN-
the date of enactment of this Act. (2) REQUIREMENT.—The principal executive
ERAL.—Section 1107(a)(3) of the CARES Act
(s) OVERSIGHT.— officer and the principal financial officer, or
(1) COMPLIANCE WITH OVERSIGHT REQUIRE- individuals performing similar functions, of (15 U.S.C. 9006(a)(3)) is amended by striking
MENTS.— an entity seeking to enter a transaction ‘‘September 20, 2024’’ and inserting ‘‘ex-
(A) IN GENERAL.—Except as provided in made under paragraph (36) or (37) of section pended’’.
subparagraph (B), on and after the date of 7(a) of the Small Business Act (15 U.S.C. (v) EMERGENCY DESIGNATION.—
enactment of this Act, the Administrator 636(a)), as added and amended by this sec- (1) IN GENERAL.—The amounts provided
shall comply with any data or information tion, shall, before that transaction is ap- under this section are designated as an emer-
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requests or inquiries made by the Comp- proved, disclose to the Administrator wheth- gency requirement pursuant to section 4(g)
troller General of the United States not later er the entity is a covered entity. of the Statutory Pay-As-You-Go Act of 2010
than 30 days (or such later date as the Comp- (3) APPLICABILITY.—The requirement under (2 U.S.C. 933(g)).
troller General may specify) after receiving paragraph (2)— (2) DESIGNATION IN SENATE.—In the Senate,
the request or inquiry. (A) shall apply with respect to any trans- this section is designated as an emergency
(B) EXCEPTION.—If the Administrator is un- action made under paragraph (36) or (37) of requirement pursuant to section 4112(a) of H.
able to comply with a request or inquiry de- section 7(a) of the Small Business Act (15 Con. Res. 71 (115th Congress), the concurrent
scribed in subparagraph (A) within the 30- U.S.C. 636(a)), as added and amended by this resolution on the budget for fiscal year 2018.
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4759
SA 2508. Mr. RUBIO (for himself and ‘‘(5) the term ‘covered supplier cost’ means ments on covered worker protection expendi-
Ms. COLLINS) submitted an amendment an expenditure made by an entity to a sup- tures,’’ after ‘‘lease obligations,’’; and
intended to be proposed by him to the plier of goods pursuant to a contract in ef- (ii) in paragraph (3)(B), by inserting ‘‘make
fect before February 15, 2020 for the supply of payments on covered operations expendi-
bill S. 178, to condemn gross human goods that are essential to the operations of tures, make payments on covered property
rights violations of ethnic Turkic Mus- the entity at the time at which the expendi- damage costs, make payments on covered
lims in Xinjiang, and calling for an end ture is made;’’; supplier costs, make payments on covered
to arbitrary detention, torture, and (viii) by inserting after paragraph (8), as so worker protection expenditures,’’ after ‘‘rent
harassment of these communities in- redesignated, the following: obligation,’’.
side and outside China; which was or- ‘‘(9) the term ‘covered worker protection (e) LENDER SAFE HARBOR.—Subsection (h)
dered to lie on the table; as follows: expenditure’— of section 1106 of the CARES Act (15 U.S.C.
‘‘(A) means an operating or a capital ex- 9005) is amended to read as follows:
At the appropriate place, insert the fol-
penditure that is required to facilitate the ‘‘(h) HOLD HARMLESS.—
lowing: adaptation of the business activities of an
SEC. ll. SMALL BUSINESS RECOVERY. ‘‘(1) IN GENERAL.—A lender may rely on
entity to comply with requirements estab- any certification or documentation sub-
(a) SHORT TITLE.—This section may be lished or guidance issued by the Department
cited as the ‘‘Continuing the Paycheck Pro- mitted by an applicant for a covered loan or
of Health and Human Services, the Centers an eligible recipient of a covered loan that—
tection Program Act’’. for Disease Control, or the Occupational
(b) DEFINITIONS.—In this section: ‘‘(A) is submitted pursuant to any statu-
Safety and Health Administration during the tory requirement relating to covered loans
(1) ADMINISTRATION; ADMINISTRATOR.—The period beginning on March 1, 2020 and ending
terms ‘‘Administration’’ and ‘‘Adminis- or any rule or guidance issued to carry out
December 31, 2020 related to the maintenance any action relating to covered loans; and
trator’’ mean the Small Business Adminis- of standards for sanitation, social
tration and the Administrator thereof, re- ‘‘(B) attests that the applicant or eligible
distancing, or any other worker or customer recipient, as applicable, has accurately
spectively. safety requirement related to COVID–19;
(2) SMALL BUSINESS CONCERN.—The term verified any certification or documentation
‘‘(B) may include— provided to the lender.
‘‘small business concern’’ has the meaning ‘‘(i) the purchase, maintenance, or renova-
given the term in section 3 of the Small ‘‘(2) NO ENFORCEMENT ACTION.—With re-
tion of assets that create or expand— spect to a lender that relies on a certifi-
Business Act (15 U.S.C. 632). ‘‘(I) a drive-through window facility;
(c) EMERGENCY RULEMAKING AUTHORITY.— cation or documentation described in para-
‘‘(II) an indoor, outdoor, or combined air or
Not later than 30 days after the date of en- graph (1)—
air pressure ventilation or filtration system;
actment of this Act, the Administrator shall ‘‘(A) an enforcement action may not be
‘‘(III) a physical barrier such as a sneeze
issue regulations to carry out this section taken against the lender acting in good faith
guard;
and the amendments made by this section relating to origination or forgiveness of a
‘‘(IV) an indoor, outdoor, or combined com-
without regard to the notice requirements covered loan based on such reliance; and
mercial real property;
under section 553(b) of title 5, United States ‘‘(B) the lender acting in good faith shall
‘‘(V) an onsite or offsite health screening
Code. not be subject to any penalties relating to
capability; or
(d) ADDITIONAL ELIGIBLE EXPENSES.— origination or forgiveness of a covered loan
‘‘(VI) other assets relating to the compli-
(1) ALLOWABLE USE OF PPP LOAN.—Section based on such reliance.’’.
ance with the requirements or guidance de-
7(a)(36)(F)(i) of the Small Business Act (15 scribed in subparagraph (A), as determined (f) SELECTION OF COVERED PERIOD FOR FOR-
U.S.C. 636(a)(36)(F)(i)) is amended— GIVENESS.—Section 1106 of the CARES Act
by the Administrator in consultation with
(A) in subclause (VI), by striking ‘‘and’’ at the Secretary of Health and Human Services (15 U.S.C. 9005) is amended—
the end; and the Secretary of Labor; and (1) by amending paragraph (4) of subsection
(B) in subclause (VII), by striking the pe- ‘‘(ii) the purchase of— (a), as so redesignated by subsection (d) of
riod at the end and inserting a semicolon; ‘‘(I) covered materials described in section this section, to read as follows:
and 328.103(a) of title 44, Code of Federal Regula- ‘‘(4) the term ‘covered period’ means the
(C) by adding at the end the following: tions, or any successor regulation; period—
‘‘(VIII) covered operations expenditures, as ‘‘(II) particulate filtering facepiece res- ‘‘(A) beginning on the date of the origina-
defined in section 1106(a) of the CARES Act pirators approved by the National Institute tion of a covered loan; and
(15 U.S.C. 9005(a)); for Occupational Safety and Health, includ- ‘‘(B) ending on a date selected by the eligi-
‘‘(IX) covered property damage costs, as ing those approved only for emergency use ble recipient of the covered loan that occurs
defined in such section 1106(a); authorization; or during the period—
‘‘(X) covered supplier costs, as defined in ‘‘(III) other kinds of personal protective ‘‘(i) beginning on the date that is 8 weeks
such section 1106(a); and equipment, as determined by the Adminis- after such date of origination; and
‘‘(XI) covered worker protection expendi- trator in consultation with the Secretary of ‘‘(ii) ending on December 31, 2020;’’; and
tures, as defined in such section 1106(a).’’. Health and Human Services and the Sec- (2) by striking subsection (l).
(2) LOAN FORGIVENESS.—Section 1106 of the retary of Labor; and (g) SIMPLIFIED APPLICATION.—Section 1106
CARES Act (15 U.S.C. 9005) is amended— ‘‘(C) does not include residential real prop- of the CARES Act (15 U.S.C. 9005), as amend-
(A) in subsection (a)— erty or intangible property;’’; and ed by subsection (f) of this section, is amend-
(i) by redesignating paragraphs (6), (7), and (ix) in paragraph (11), as so redesignated— ed—
(8) as paragraphs (10), (11), and (12), respec- (I) in subparagraph (C), by striking ‘‘and’’ (1) in subsection (e), in the matter pre-
tively; at the end; ceding paragraph (1), by striking ‘‘An eligi-
(ii) by redesignating paragraph (5) as para- (II) in subparagraph (D), by striking ‘‘and’’ ble’’ and inserting ‘‘Except as provided in
graph (8); at the end; and subsection (l), an eligible’’;
(iii) by redesignating paragraph (4) as para- (III) by adding at the end the following: (2) in subsection (f), by inserting ‘‘or the
graph (6); ‘‘(E) covered operations expenditures; information required under subsection (l), as
(iv) by redesignating paragraph (3) as para- ‘‘(F) covered property damage costs; applicable’’ after ‘‘subsection (e)’’; and
graph (4); ‘‘(G) covered supplier costs; and (3) by adding at the end the following:
(v) by inserting after paragraph (2) the fol- ‘‘(H) covered worker protection expendi- ‘‘(l) SIMPLIFIED APPLICATION.—
lowing: tures; and’’; ‘‘(1) COVERED LOANS UNDER $150,000.—
‘‘(3) the term ‘covered operations expendi- (B) in subsection (b), by adding at the end ‘‘(A) IN GENERAL.—Notwithstanding sub-
ture’ means a payment for any business soft- the following: section (e), with respect to a covered loan
ware or cloud computing service that facili- ‘‘(5) Any covered operations expenditure. made to an eligible recipient that is not
tates business operations, product or service ‘‘(6) Any covered property damage cost. more than $150,000, the covered loan amount
delivery, the processing, payment, or track- ‘‘(7) Any covered supplier cost. shall be forgiven under this section if the eli-
ing of payroll expenses, human resources, ‘‘(8) Any covered worker protection ex- gible recipient—
sales and billing functions, or accounting or penditure.’’; ‘‘(i) signs and submits to the lender an at-
tracking of supplies, inventory, records and (C) in subsection (d)(8), by inserting ‘‘any testation that the eligible recipient made a
expenses;’’; payment on any covered operations expendi- good faith effort to comply with the require-
(vi) by inserting after paragraph (4), as so ture, any payment on any covered property ments under section 7(a)(36) of the Small
redesignated, the following: damage cost, any payment on any covered Business Act (15 U.S.C. 636(a)(36)); and
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‘‘(5) the term ‘covered property damage supplier cost, any payment on any covered ‘‘(ii) for the 1-year period following sub-
cost’ means a cost related to property dam- worker protection expenditure,’’ after ‘‘rent mission of the attestation under clause (i),
age and vandalism or looting due to public obligation,’’; and retains records relevant to the attestation
disturbances that occurred during 2020 that (D) in subsection (e)— that prove compliance with those require-
was not covered by insurance or other com- (i) in paragraph (2), by inserting ‘‘pay- ments.
pensation;’’; ments on covered operations expenditures, ‘‘(B) DEMOGRAPHIC INFORMATION.—An eligi-
(vii) by inserting after paragraph (6), as so payments on covered property damage costs, ble recipient of a covered loan described in
redesignated, the following: payments on covered supplier costs, pay- subparagraph (A) may complete and submit
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S4760 CONGRESSIONAL RECORD — SENATE August 4, 2020
any form related to borrower demographic ‘‘(iii) any substantial changes made to the ‘‘(II) includes an organization described in
information. audit plan submitted under subparagraph subparagraph (D)(vii) of paragraph (36) that
‘‘(C) AUDIT.—The Administrator may— (A).’’. is eligible to receive a loan under that para-
‘‘(i) review and audit covered loans de- (h) GROUP INSURANCE PAYMENTS AS PAY- graph and that meets the requirements de-
scribed in subparagraph (A); and ROLL COSTS.—Section scribed in items (aa) and (cc) of subclause (I);
‘‘(ii) in the case of fraud, ineligibility, or 7(a)(36)(A)(viii)(I)(aa)(EE) of the Small Busi- and
other material noncompliance with applica- ness Act (15 U.S.C. ‘‘(III) does not include—
ble loan or loan forgiveness requirements, 636(a)(36)(A)(viii)(I)(aa)(EE)) is amended by ‘‘(aa) an issuer, the securities of which are
modify— inserting ‘‘and other group insurance’’ before listed on an exchange registered a national
‘‘(I) the amount of a covered loan described ‘‘benefits’’. securities exchange under section 6 of the
in subparagraph (A); or (i) PAYCHECK PROTECTION PROGRAM SECOND Securities Exchange Act of 1934 (15 U.S.C.
‘‘(II) the loan forgiveness amount with re- DRAW LOANS.—Section 7(a) of the Small 78f);
spect to a covered loan described in subpara- Business Act (15 U.S.C. 636(a)) is amended by ‘‘(bb) any entity that—
graph (A). adding at the end the following: ‘‘(AA) is a type of business concern de-
‘‘(2) COVERED LOANS BETWEEN $150,000 AND ‘‘(37) PAYCHECK PROTECTION PROGRAM SEC- scribed in subsection (b), (c), (d), (e), (f), (h),
$2,000,000.— OND DRAW LOANS.— (l) (m), (p), (q), (r), or (s) of section 120.110 of
‘‘(A) IN GENERAL.—Notwithstanding sub- ‘‘(A) DEFINITIONS.—In this paragraph— title 13, Code of Federal Regulations, or any
section (e), with respect to a covered loan ‘‘(i) the terms ‘community financial insti- successor regulation;
made to an eligible recipient that is more tutions’, ‘credit union’, ‘eligible self-em- ‘‘(BB) is a type of business concern de-
than $150,000 and not more than $2,000,000— ployed individual’, ‘insured depository insti- scribed in section 120.110(g) of title 13, Code
‘‘(i) the eligible recipient seeking loan for- tution’, ‘nonprofit organization’, ‘payroll of Federal Regulations, or any successor reg-
giveness under this section— costs’, ‘seasonal employer’, and ‘veterans or- ulation, except as otherwise provided in the
‘‘(I) is not required to submit the sup- ganization’ have the meanings given those interim final rule of the Administration en-
porting documentation described in para- terms in paragraph (36), except that ‘eligible titled ‘Business Loan Program Temporary
graph (1) or (2) of subsection (e) or the cer- entity’ shall be substituted for ‘eligible re- Changes; Paycheck Protection Program—Ad-
tification described in subsection (e)(3)(A); cipient’ each place it appears in the defini- ditional Eligibility Criteria and Require-
‘‘(II) shall retain all relevant schedules, tions of those terms; ments for Certain Pledges of Loans’ (85 Fed.
worksheets, and supporting documentation ‘‘(ii) the term ‘covered loan’ means a loan Reg. 21747 (April 20, 2020));
for the 3-year period following submission of made under this paragraph; ‘‘(CC) is a type of business concern de-
the application for loan forgiveness; and ‘‘(iii) the terms ‘covered mortgage obliga- scribed in section 120.110(i) of title 13, Code of
‘‘(III) may complete and submit any form tion’, ‘covered operating expenditure’, ‘cov- Federal Regulations, or any successor regu-
related to borrower demographic informa- ered property damage cost’, ‘covered rent ob- lation, except if the business concern is an
tion; ligation’, ‘covered supplier cost’, ‘covered organization described in paragraph
‘‘(ii) review by the lender of an application utility payment’, and ‘covered worker pro- (36)(D)(vii);
submitted by the eligible recipient for loan tection expenditure’ have the meanings ‘‘(DD) is a type of business concern de-
forgiveness under this section shall be lim- given those terms in section 1106(a) of the scribed in section 120.110(j) of title 13, Code of
ited to whether the lender received a com- CARES Act (15 U.S.C. 9005(a)); Federal Regulations, or any successor regu-
plete application, with all fields completed, ‘‘(iv) the term ‘covered period’ means the lation, except as otherwise provided in the
initialed, or signed, as applicable; and period beginning on the date of the origina- interim final rules of the Administration en-
‘‘(iii) the lender shall— tion of a covered loan and ending on Decem- titled ‘Business Loan Program Temporary
‘‘(I) accept the application submitted by ber 31, 2020; Changes; Paycheck Protection Program—
the eligible recipient for loan forgiveness ‘‘(v) the term ‘eligible entity’— Eligibility of Certain Electric Cooperatives’
under this section; and ‘‘(I) means any business concern, nonprofit (85 Fed. Reg. 29847 (May 19, 2020)) and ‘Busi-
‘‘(II) submit the application to the Admin- organization, veterans organization, Tribal ness Loan Program Temporary Changes;
istrator. business concern, eligible self-employed indi- Paycheck Protection Program—Eligibility
‘‘(B) AUDIT.—The Administrator may— vidual, sole proprietor, independent con- of Certain Telephone Cooperatives’ (85 Fed.
‘‘(i) review and audit covered loans de- tractor, or small agricultural cooperative Reg. 35550 (June 11, 2020)) or any other guid-
scribed in subparagraph (A); and that— ance or rule issued or that may be issued by
‘‘(ii) in the case of fraud, ineligibility, or ‘‘(aa)(AA) with respect to a business con- the Administrator;
other material noncompliance with applica- cern, would qualify as a small business con- ‘‘(EE) is a type of business concern de-
ble loan or loan forgiveness requirements, cern by the annual receipts size standard (if scribed in section 120.110(n) of title 13, Code
modify— applicable) established by section 121.201 of of Federal Regulations, or any successor reg-
‘‘(I) the amount of a covered loan described title 13, Code of Federal Regulations, or any ulation, except as otherwise provided in the
in subparagraph (A); or successor regulation; or interim final rule of the Administration en-
‘‘(II) the loan forgiveness amount with re- ‘‘(BB) if the entity does not qualify as a titled ‘Business Loan Program Temporary
spect to a covered loan described in subpara- small business concern, meets the alter- Changes; Paycheck Protection Program—Ad-
graph (A). native size standard established under sec- ditional Eligibility Revisions to First In-
‘‘(3) AUDIT PLAN.— tion 3(a)(5); terim Final Rule’ (85 Fed. Reg. 38301 (June
‘‘(A) IN GENERAL.—Not later than 30 days ‘‘(bb) employs not more than 300 employ- 26, 2020)) or any other guidance or rule issued
after the date of enactment of the Con- ees; and or that may be issued by the Administrator;
tinuing the Paycheck Protection Program ‘‘(cc)(AA) except as provided in subitems ‘‘(FF) is a type of business concern de-
Act, the Administrator shall submit to the (BB), (CC), and (DD), had gross receipts dur- scribed in section 120.110(o) of title 13, Code
Committee on Small Business and Entrepre- ing the first or second quarter in 2020 that of Federal Regulations, or any successor reg-
neurship of the Senate and the Committee are not less than 35 percent less than the ulation, except as otherwise provided in any
on Small Business of the House of Represent- gross receipts of the entity during the same guidance or rule issued or that may be issued
atives an audit plan that details— quarter in 2019; by the Administrator; or
‘‘(i) the policies and procedures of the Ad- ‘‘(BB) if the entity was not in business dur- ‘‘(GG) is an entity that is organized for re-
ministrator for conducting reviews and au- ing the first or second quarter of 2019, but search or for engaging in advocacy in areas
dits of covered loans; and was in business during the third and fourth such as public policy or political strategy or
‘‘(ii) the metrics that the Administrator quarter of 2019, had gross receipts during the otherwise describes itself as a think tank in
shall use to determine which covered loans first or second quarter of 2020 that are less any public documents;
will be audited for each category of covered than 35 percent of the amount of the gross ‘‘(HH) is an entity that would be described
loans described in paragraphs (1) and (2). receipts of the entity during the third or in the subsections listed in subitems (AA)
‘‘(B) REPORTS.—Not later than 30 days fourth quarter of 2019; through (GG) if the entity were a business
after the date on which the Administrator ‘‘(CC) if the entity was not in business dur- concern; or
submits the audit plan required under sub- ing the first, second, or third quarter of 2019, ‘‘(II) is assigned, or was approved for a loan
paragraph (A), and each month thereafter, but was in business during the fourth quarter under paragraph (36) with, a North American
the Administrator shall submit to the Com- of 2019, had gross receipts during the first or Industry Classification System code begin-
mittee on Small Business and Entrepreneur- second quarter of 2020 that are less than 35 ning with 52;
ship of the Senate and the Committee on percent of the amount of the gross receipts ‘‘(cc) any business concern or entity pri-
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Small Business of the House of Representa- of the entity during the fourth quarter of marily engaged in political or lobbying ac-
tives a report on the review and audit activi- 2019; or tivities, which shall include any entity that
ties of the Administrator under this sub- ‘‘(DD) if the entity was not in business dur- is organized for research or for engaging in
section, which shall include— ing 2019, but was in operation on February advocacy in areas such as public policy or
‘‘(i) the number of active reviews and au- 15, 2020, had gross receipts during the second political strategy or otherwise describes
dits; quarter of 2020 that are less than 35 percent itself as a think tank in any public docu-
‘‘(ii) the number of reviews and audits that of the amount of the gross receipts of the en- ments; or
have been ongoing for more than 60 days; and tity during the first quarter of 2020; ‘‘(dd) any business concern or entity—
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4761
‘‘(AA) for which an entity created in or or- section for the eligible entity (including any ‘‘(I) the amount described in clause (ii);
ganized under the laws of the People’s Re- affiliates) shall not exceed $10,000,000. and
public of China or the Special Administra- ‘‘(D) EXCEPTION FROM CERTAIN CERTIFI- ‘‘(II) the amount equal to the quotient ob-
tive Region of Hong Kong, or that has sig- CATION REQUIREMENTS.—An eligible entity tained by dividing—
nificant operations in the People’s Republic applying for a covered loan shall not be re- ‘‘(aa) the amount of the covered loan used
of China or the Special Administrative Re- quired to make the certification described in for payroll costs during the covered period;
gion of Hong Kong, owns or holds, directly or subclause (III) or (IV) of paragraph (36)(G)(i). and
indirectly, not less than 20 percent of the ‘‘(E) FEE WAIVER.—With respect to a cov- ‘‘(bb) 0.60.
economic interest of the business concern or ered loan— ‘‘(I) LENDER ELIGIBILITY.—Except as other-
entity, including as equity shares or a cap- ‘‘(i) in lieu of the fee otherwise applicable wise provided in this paragraph, a lender ap-
ital or profit interest in a limited liability under paragraph (23)(A), the Administrator proved to make loans under paragraph (36)
company or partnership; or shall collect no fee; and may make covered loans under the same
‘‘(BB) that retains, as a member of the ‘‘(ii) in lieu of the fee otherwise applicable terms and conditions as in paragraph (36).
board of directors of the business concern, a under paragraph (18)(A), the Administrator ‘‘(J) REIMBURSEMENT FOR LOAN PROCESSING
person who is a resident of the People’s Re- shall collect no fee. AND SERVICING.—The Administrator shall re-
public of China; ‘‘(F) ELIGIBLE CHURCHES AND RELIGIOUS OR- imburse a lender authorized to make a cov-
‘‘(vi) the terms ‘exchange’, ‘issuer’, and ‘se- GANIZATIONS.— ered loan in an amount that is—
curity’ have the meanings given those terms ‘‘(i) SENSE OF CONGRESS.—It is the sense of ‘‘(i) 3 percent of the principal amount of
in section 3(a) of the Securities Exchange Congress that the interim final rule of the the financing of the covered loan up to
Act of 1934 (15 U.S.C. 78c(a)); and Administration entitled ‘Business Loan Pro- $350,000; and
‘‘(vii) the term ‘Tribal business concern’ gram Temporary Changes; Paycheck Protec- ‘‘(ii) 1 percent of the principal amount of
means a Tribal business concern described in tion Program’ (85 Fed. Reg. 20817 (April 15, the financing of the covered loan above
section 31(b)(2)(C). 2020)) properly clarified the eligibility of $350,000, if applicable.
‘‘(B) LOANS.—Except as otherwise provided churches and religious organizations for ‘‘(K) SET ASIDE FOR SMALL ENTITIES.—Not
in this paragraph, the Administrator may loans made under paragraph (36). less than $25,000,000,000 of the total amount
guarantee covered loans to eligible entities ‘‘(ii) APPLICABILITY OF PROHIBITION.—The of covered loans guaranteed by the Adminis-
under the same terms, conditions, and proc- prohibition on eligibility established by sec- trator shall be made to eligible entities with
esses as a loan made under paragraph (36). tion 120.110(k) of title 13, Code of Federal not more than 10 employees as of February
‘‘(C) MAXIMUM LOAN AMOUNT.— Regulations, or any successor regulation, 15, 2020.
‘‘(i) IN GENERAL.—Except as otherwise pro- shall not apply to a covered loan. ‘‘(L) SET ASIDE FOR COMMUNITY FINANCIAL
vided in this subparagraph, the maximum ‘‘(G) GROSS RECEIPTS FOR NONPROFIT AND INSTITUTIONS, SMALL INSURED DEPOSITORY IN-
amount of a covered loan made to an eligible VETERANS ORGANIZATIONS.—For purposes of STITUTIONS, CREDIT UNIONS, AND FARM CREDIT
entity is the lesser of— calculating gross receipts under subpara- SYSTEM INSTITUTIONS.—Not less than
‘‘(I) the product obtained by multiplying— graph (A)(v)(I)(cc) for an eligible entity that $10,000,000,000 of the total amount of covered
‘‘(aa) at the election of the eligible entity, is a nonprofit organization, a veterans orga- loans guaranteed by the Administrator shall
the average total monthly payment for pay- nization, or an organization described in sub- be made by—
roll costs incurred or paid by the eligible en- paragraph (A)(v)(II), gross receipts— ‘‘(i) community financial institutions;
tity during— ‘‘(i) shall include proceeds from fund- ‘‘(ii) insured depository institutions with
‘‘(AA) the 1-year period before the date on raising events, federated campaigns, gifts, consolidated assets of less than
which the loan is made; or donor-advised funds, and funds from similar $10,000,000,000;
‘‘(BB) calendar year 2019; by sources; and ‘‘(iii) credit unions with consolidated as-
‘‘(bb) 2.5; or ‘‘(ii) shall not include— sets of less than $10,000,000,000; and
‘‘(II) $2,000,000. ‘‘(I) Federal grants (excluding any loan for- ‘‘(iv) institutions of the Farm Credit Sys-
‘‘(ii) SEASONAL EMPLOYERS.—The maximum giveness on loans received under paragraph tem chartered under the Farm Credit Act of
amount of a covered loan made to an eligible (36) or this paragraph); 1971 (12 U.S.C. 2001 et seq.) with consolidated
entity that is a seasonal employer is the ‘‘(II) revenues from a supporting organiza- assets of less than $10,000,000,000 (not includ-
lesser of— tion; ing the Federal Agricultural Mortgage Cor-
‘‘(I) the product obtained by multiplying— ‘‘(III) grants from private foundations that poration).
‘‘(aa) at the election of the eligible entity, are disbursed over the course of more than 1 ‘‘(M) PUBLICATION OF GUIDANCE.—Not later
the average total monthly payments for pay- calendar year; or than 10 days after the date of enactment of
roll costs incurred or paid by the eligible en- ‘‘(IV) any contribution of property other this paragraph, the Administrator shall issue
tity— than money, stocks, bonds, and other securi- guidance addressing barriers to accessing
‘‘(AA) for a 12-week period beginning Feb- ties, provided that the non-cash contribution capital for minority, underserved, veteran,
ruary 15, 2019 or March 1, 2019 and ending is not sold by the organization in a trans- and women-owned business concerns for the
June 30, 2019; or action unrelated to the tax-exempt purpose purpose of ensuring equitable access to cov-
‘‘(BB) for a consecutive 12-week period be- of the organization. ered loans.
tween May 1, 2019 and September 15, 2019; by ‘‘(H) LOAN FORGIVENESS.— ‘‘(N) STANDARD OPERATING PROCEDURE.—
‘‘(bb) 2.5; or ‘‘(i) IN GENERAL.—Except as otherwise pro- The Administrator shall, to the maximum
‘‘(II) $2,000,000. vided in this subparagraph, an eligible entity extent practicable, allow a lender approved
‘‘(iii) NEW ENTITIES.—The maximum shall be eligible for forgiveness of indebted- to make covered loans to use existing pro-
amount of a covered loan made to an eligible ness on a covered loan in the same manner gram guidance and standard operating proce-
entity that did not exist during the 1-year as an eligible recipient with respect to a loan dures for loans made under this subsection.
period preceding February 15, 2020 is the less- made under paragraph (36), as described in ‘‘(O) PROHIBITION ON USE OF PROCEEDS FOR
er of— section 1106 of the CARES Act (15 U.S.C. LOBBYING ACTIVITIES.—None of the proceeds
‘‘(I) the product obtained by multiplying— 9005). of a covered loan may be used for—
‘‘(aa) the quotient obtained by dividing— ‘‘(ii) FORGIVENESS AMOUNT.—An eligible en- ‘‘(i) lobbying activities, as defined in sec-
‘‘(AA) the sum of the total monthly pay- tity shall be eligible for forgiveness of in- tion 3 of the Lobbying Disclosure Act of 1995
ments by the eligible entity for payroll costs debtedness on a covered loan in an amount (2 U.S.C. 1602);
paid or incurred by the eligible entity as of equal to the sum of the following costs in- ‘‘(ii) lobbying expenditures related to a
the date on which the eligible entity applies curred or expenditures made during the cov- State or local election; or
for the covered loan; by ered period: ‘‘(iii) expenditures designed to influence
‘‘(BB) the number of months in which ‘‘(I) Payroll costs. the enactment of legislation, appropriations,
those payroll costs were paid or incurred; by ‘‘(II) Any payment of interest on any cov- regulation, administrative action, or Execu-
‘‘(bb) 2.5; or ered mortgage obligation (which shall not in- tive order proposed or pending before Con-
‘‘(II) $2,000,000. clude any prepayment of or payment of prin- gress or any State government, State legis-
‘‘(iv) LIMIT FOR MULTIPLE LOCATIONS.—With cipal on a covered mortgage obligation). lature, or local legislature or legislative
respect to an eligible entity with more than ‘‘(III) Any covered operations expenditure. body.’’.
1 physical location, the total amount of all ‘‘(IV) Any covered property damage cost. (j) CONTINUED ACCESS TO THE PAYCHECK
covered loans shall be not more than ‘‘(V) Any payment on any covered rent ob- PROTECTION PROGRAM.—
$2,000,000. ligation. (1) IN GENERAL.—Section 7(a)(36)(E)(ii) of
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‘‘(v) LOAN NUMBER LIMITATION.—An eligible ‘‘(VI) Any covered utility payment. the Small Business Act (15 U.S.C.
entity may only receive 1 covered loan. ‘‘(VII) Any covered supplier cost. 636(a)(36)(E)(ii)) is amended by striking
‘‘(vi) 90 DAY RULE FOR MAXIMUM LOAN ‘‘(VIII) Any covered worker protection ex- ‘‘$10,000,000’’ and inserting ‘‘$2,000,000’’.
AMOUNT.—The maximum aggregate loan penditure. (2) APPLICABILITY OF MAXIMUM LOAN
amount of loans guaranteed under this sub- ‘‘(iii) LIMITATION ON FORGIVENESS FOR ALL AMOUNT CALCULATION.—
section that are approved for an eligible en- ELIGIBLE ENTITIES.—The forgiveness amount (A) DEFINITIONS.—In this paragraph, the
tity (including any affiliates) within 90 days under this subparagraph shall be equal to the terms ‘‘covered loan’’ and ‘‘eligible recipi-
of approval of another loan under this sub- lesser of— ent’’ have the meanings given those terms in
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S4762 CONGRESSIONAL RECORD — SENATE August 4, 2020
section 7(a)(36) of the Small Business Act (15 vided by 12, shall be added to the sum cal- (I) in subclause (I), by striking ‘‘and’’ at
U.S.C. 636(a)(36)). culated under subparagraph (E)(i)(I). the end;
(B) APPLICABILITY.—The amendment made ‘‘(iv) RECALCULATION.—A lender that made (II) in subclause (II), by striking the period
by paragraph (1) shall apply only with re- a covered loan to a covered recipient before at the end and inserting ‘‘; and’’; and
spect to a covered loan applied for by an eli- the date of enactment of this subparagraph (III) by adding at the end the following:
gible recipient on or after the date of enact- may, at the request of the covered recipi- ‘‘(III) institutions of the Farm Credit Sys-
ment of this Act. ent— tem chartered under the Farm Credit Act of
(k) INCREASED ABILITY FOR PAYCHECK PRO- ‘‘(I) recalculate the maximum loan amount 1971 (12 U.S.C. 2001 et seq.) with consolidated
TECTION PROGRAM BORROWERS TO REQUEST AN applicable to that covered loan based on the assets of not less than $10,000,000,000 and less
INCREASE IN LOAN AMOUNT DUE TO UPDATED formula described in clause (ii) or (iii), as ap- than $50,000,000,000.’’; and
REGULATIONS.— plicable, if doing so would result in a larger (ii) in clause (ii)—
(1) DEFINITIONS.—In this subsection, the covered loan amount; and (I) in subclause (II), by striking ‘‘and’’ at
terms ‘‘covered loan’’ and ‘‘eligible recipi- ‘‘(II) provide the covered recipient with ad- the end;
ent’’ have the meanings given those terms in ditional covered loan amounts based on that (II) in subclause (III), by striking the pe-
section 7(a)(36) of the Small Business Act (15 recalculation.’’. riod at the end and inserting ‘‘; and’’; and
U.S.C. 636(a)(36)). (m) FARM CREDIT SYSTEM INSTITUTIONS.— (III) by adding at the end the following:
(2) INCREASED AMOUNT.—Notwithstanding (1) DEFINITION OF FARM CREDIT SYSTEM IN- ‘‘(IV) institutions of the Farm Credit Sys-
STITUTION.—In this subsection, the term tem chartered under the Farm Credit Act of
the interim final rule issued by the Adminis-
‘‘Farm Credit System institution’’— 1971 (12 U.S.C. 2001 et seq.) with consolidated
tration entitled ‘‘Business Loan Program
(A) means an institution of the Farm Cred- assets of less than $10,000,000,000.’’.
Temporary Changes; Paycheck Protection
it System chartered under the Farm Credit
Program—Loan Increases’’ (85 Fed. Reg. (n) DEFINITION OF SEASONAL EMPLOYER.—
Act of 1971 (12 U.S.C. 2001 et seq.); and
29842 (May 19, 2020)), an eligible recipient of (1) PPP LOANS.—Section 7(a)(36)(A) of the
(B) does not include the Federal Agricul-
a covered loan that is eligible for an in- Small Business Act (15 U.S.C. 636(a)(36)(A)) is
tural Mortgage Corporation.
creased covered loan amount as a result of amended—
(2) FACILITATION OF PARTICIPATION IN PPP
any interim final rule that allows for cov- (A) in clause (xi), by striking ‘‘and’’ at the
AND SECOND DRAW LOANS.—
ered loan increases may submit a request for end;
(A) APPLICABLE RULES.—Solely with re-
an increase in the covered loan amount even (B) in clause (xii), by striking the period at
spect to loans under paragraphs (36) and (37)
if— of section 7(a) of the Small Business Act (15 the end and inserting ‘‘; and’’; and
(A) the initial covered loan amount has U.S.C. 636(a)), Farm Credit Administration (C) by adding at the end the following:
been fully disbursed; or regulations and guidance issued as of July ‘‘(xiii) the term ‘seasonal employer’ means
(B) the lender of the initial covered loan 14, 2020, and compliance with such regula- an eligible recipient that—
has submitted to the Administration a Form tions and guidance, shall be deemed func- ‘‘(I) does not operate for more than 7
1502 report related to the covered loan. tionally equivalent to requirements ref- months in any calendar year; or
(l) CALCULATION OF MAXIMUM LOAN AMOUNT erenced in section 3(a)(iii)(II) of the interim ‘‘(II) during the preceding calendar year,
FOR FARMERS AND RANCHERS UNDER THE PAY- final rule of the Administration entitled had gross receipts for any 6 months of that
CHECK PROTECTION PROGRAM.— ‘‘Business Loan Program Temporary year that were not more than 33.33 percent of
(1) IN GENERAL.—Section 7(a)(36) of the Changes; Paycheck Protection Program’’ (85 the gross receipts of the employer for the
Small Business Act (15 U.S.C. 636(a)(36)), as Fed. Reg. 20811 (April 15, 2020)) or any similar other 6 months of that year.’’.
amended by subsection (j) of this section, is requirement referenced in that interim final (2) LOAN FORGIVENESS.—Paragraph (12) of
amended— rule in implementing such paragraph (37). section 1106(a) of the CARES Act (15 U.S.C.
(A) in subparagraph (E), in the matter pre- (B) APPLICABILITY OF CERTAIN LOAN RE- 9005(a)), as so redesignated by subsection
ceding clause (i), by striking ‘‘During’’ and QUIREMENTS.—For purposes of making loans (d)(2) of this section, is amended to read as
inserting ‘‘Except as provided in subpara- under paragraph (36) or (37) of section 7(a) of follows:
graph (T), during’’; and the Small Business Act (15 U.S.C. 636(a)) or ‘‘(12) the terms ‘payroll costs’ and ‘sea-
(B) by adding at the end the following: forgiving those loans in accordance with sec- sonal employer’ have the meanings given
‘‘(T) CALCULATION OF MAXIMUM LOAN tion 1106 of the CARES Act (15 U.S.C. 9005) those terms in section 7(a)(36) of the Small
AMOUNT FOR FARMERS AND RANCHERS.— and subparagraph (H) of such paragraph (37), Business Act (15 U.S.C. 636(a)(36)).’’.
‘‘(i) DEFINITION.—In this subparagraph, the sections 4.13, 4.14, and 4.14A of the Farm
term ‘covered recipient’ means an eligible (o) ELIGIBILITY OF 501(C)(6) ORGANIZATIONS
Credit Act of 1971 (12 U.S.C. 2199, 2202, 2202a)
recipient that— (including regulations issued under those FOR LOANS UNDER THE PAYCHECK PROTECTION
‘‘(I) operates as a sole proprietorship or as sections) shall not apply. PROGRAM.—Section 7(a)(36)(D) of the Small
an independent contractor, or is an eligible (C) RISK WEIGHT.— Business Act (15 U.S.C. 636(a)(36)(D)) is
self-employed individual; (i) IN GENERAL.—With respect to the appli- amended—
‘‘(II) reports farm income or expenses on a cation of Farm Credit Administration cap- (1) in clause (v), by inserting ‘‘or whether
Schedule F (or any equivalent successor ital requirements, a loan described in clause an organization described in clause (vii) em-
schedule); and (ii)— ploys not more than 150 employees,’’ after
‘‘(III) was in business during the period be- (I) shall receive a risk weight of zero per- ‘‘clause (i)(I),’’;
ginning on February 15, 2019 and ending on cent; and (2) in clause (vi), by inserting ‘‘, an organi-
June 30, 2019. (II) shall not be included in the calculation zation described in clause (vii),’’ after ‘‘non-
‘‘(ii) NO EMPLOYEES.—With respect to cov- of any applicable leverage ratio or other ap- profit organization’’; and
ered recipient without employees, the max- plicable capital ratio or calculation. (3) by adding at the end the following:
imum covered loan amount shall be the less- (ii) LOANS DESCRIBED.—A loan referred to ‘‘(vii) ELIGIBILITY FOR CERTAIN 501(C)(6) OR-
er of— in clause (i) is— GANIZATIONS.—
‘‘(I) the sum of— (I) a loan made by a Farm Credit Bank de- ‘‘(I) IN GENERAL.—Except as provided in
‘‘(aa) the product obtained by multi- scribed in section 1.2(a) of the Farm Credit subclause (II), any organization that is de-
plying— Act of 1971 (12 U.S.C. 2002(a)) to a Federal scribed in section 501(c)(6) of the Internal
‘‘(AA) the gross income of the covered re- Land Bank Association, a Production Credit Revenue Code and that is exempt from tax-
cipient in 2019, as reported on a Schedule F Association, or an agricultural credit asso- ation under section 501(a) of such Code (ex-
(or any equivalent successor schedule), that ciation described in that section to make cluding professional sports leagues and orga-
is not more than $100,000, divided by 12; and loans under paragraph (36) or (37) of section nizations with the purpose of promoting or
‘‘(BB) 2.5; and 7(a) of the Small Business Act (15 U.S.C. participating in a political campaign or
‘‘(bb) the outstanding amount of a loan 636(a)) or forgive those loans in accordance other activity) shall be eligible to receive a
under subsection (b)(2) that was made during with section 1106 of the CARES Act (15 covered loan if—
the period beginning on January 31, 2020 and U.S.C. 9005) and subparagraph (H) of such ‘‘(aa) the organization does not receive
ending on April 3, 2020 that the borrower in- paragraph (37); or more than 10 percent of its receipts from lob-
tends to refinance under the covered loan, (II) a loan made by a Federal Land Bank bying activities;
not including any amount of any advance Association, a Production Credit Associa- ‘‘(bb) the lobbying activities of the organi-
under the loan that is not required to be re- tion, an agricultural credit association, or zation do not comprise more than 10 percent
paid; or the bank for cooperatives described in sec- of the total activities of the organization;
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‘‘(II) $2,000,000. tion 1.2(a) of the Farm Credit Act of 1971 (12 and
‘‘(iii) WITH EMPLOYEES.—With respect to a U.S.C. 2002(a)) under paragraph (36) or (37) of ‘‘(cc) the organization employs not more
covered recipient with employees, the max- section 7(a) of the Small Business Act (15 than 150 employees.
imum covered loan amount shall be cal- U.S.C. 636(a)). ‘‘(II) DESTINATION MARKETING ORGANIZA-
culated using the formula described in sub- (D) RESERVATION OF LOAN GUARANTEES.— TIONS.—Notwithstanding subclause (I), dur-
paragraph (E), except that the gross income Section 7(a)(36)(S) of the Small Business Act ing the covered period, any destination mar-
of the covered recipient described in clause (15 U.S.C. 636(a)(36)(S)) is amended— keting organization shall be eligible to re-
(ii)(I)(aa)(AA) of this subparagraph, as di- (i) in clause (i)— ceive a covered loan if—
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4763
‘‘(aa) the destination marketing organiza- Code, is amended by adding at the end the (A) IN GENERAL.—Except as provided in
tion does not receive more than 10 percent of following: subparagraph (B), on and after the date of
its receipts from lobbying activities; ‘‘(f) SPECIAL PROVISION RELATED TO enactment of this Act, the Administrator
‘‘(bb) the lobbying activities of the destina- COVID–19 PANDEMIC.—Notwithstanding sec- shall comply with any data or information
tion marketing organization do not comprise tion 1129(a)(9)(A) of this title and subsection requests or inquiries made by the Comp-
more than 10 percent of the total activities (e) of this section, a plan that provides for troller General of the United States not later
of the organization; payment of a claim of a kind specified in sec- than 30 days (or such later date as the Comp-
‘‘(cc) the destination marketing organiza- tion 503(b)(10) of this title may be confirmed troller General may specify) after receiving
tion employs not more than 150 employees; under subsection (b) of this section if the the request or inquiry.
and plan proposes to make payments on account (B) EXCEPTION.—If the Administrator is un-
‘‘(dd) the destination marketing organiza- of such claim when due under the terms of able to comply with a request or inquiry de-
tion— the loan giving rise to such claim.’’. scribed in subparagraph (A) within the 30-
‘‘(AA) is described in section 501(c) of the (4) CONFIRMATION OF PLAN FOR FAMILY day period or, if applicable, later period de-
Internal Revenue Code and is exempt from FARMERS AND FISHERMEN.—Section 1225 of scribed in that clause, the Administrator
taxation under section 501(a) of such Code; or title 11, United States Code, is amended by shall, during that 30-day (or later) period,
‘‘(BB) is a quasi-governmental entity or is adding at the end the following: submit to the Committee on Small Business
a political subdivision of a State or local ‘‘(d) Notwithstanding section 1222(a)(2) of and Entrepreneurship of the Senate and the
government, including any instrumentality this title and subsection (b)(1) of this sec- Committee on Small Business of the House
of those entities.’’. tion, a plan that provides for payment of a of Representatives a notification that in-
(p) PROHIBITION ON USE OF LOAN PROCEEDS claim of a kind specified in section 503(b)(10) cludes a detailed justification for the inabil-
FOR LOBBYING ACTIVITIES.—Section of this title may be confirmed if the plan ity of the Administrator to comply with the
7(a)(36)(F) of the Small Business Act (15 proposes to make payments on account of request or inquiry.
U.S.C. 636(a)(36)(F)) is amended by adding at such claim when due under the terms of the (2) TESTIMONY.—Not later than the date
the end the following: loan giving rise to such claim.’’. that is 30 days after the date of enactment of
‘‘(vi) PROHIBITION.—None of the proceeds of (5) CONFIRMATION OF PLAN FOR INDIVID- this Act, and every quarter thereafter until
a covered loan may be used for— UALS.—Section 1325 of title 11, United States the date that is 2 years after the date of en-
‘‘(I) lobbying activities, as defined in sec- Code, is amended by adding at the end the actment of this Act, the Administrator and
tion 3 of the Lobbying Disclosure Act of 1995 following: the Secretary of the Treasury shall testify
(2 U.S.C. 1602); ‘‘(d) Notwithstanding section 1322(a)(2) of before the Committee on Small Business and
‘‘(II) lobbying expenditures related to a this title and subsection (b)(1) of this sec- Entrepreneurship of the Senate and the Com-
State or local election; or tion, a plan that provides for payment of a mittee on Small Business of the House of
‘‘(III) expenditures designed to influence claim of a kind specified in section 503(b)(10) Representatives regarding implementation
the enactment of legislation, appropriations, of this title may be confirmed if the plan of this section and the amendments made by
regulation, administrative action, or Execu- proposes to make payments on account of this section.
tive order proposed or pending before Con- such claim when due under the terms of the (t) CONFLICTS OF INTEREST.—
gress or any State government, State legis- loan giving rise to such claim.’’. (1) DEFINITIONS.—In this subsection:
lature, or local legislature or legislative (6) EFFECTIVE DATE; SUNSET.— (A) CONTROLLING INTEREST.—The term
body.’’. (A) EFFECTIVE DATE.—The amendments ‘‘controlling interest’’ means owning, con-
(q) EFFECTIVE DATE; APPLICABILITY.—The made by paragraphs (1) through (5) shall— trolling, or holding not less than 20 percent,
amendments made to paragraph (36) of sec- (i) take effect on the date on which the Ad- by vote or value, of the outstanding amount
tion 7(a) of the Small Business Act (15 U.S.C. ministrator submits to the Director of the of any class of equity interest in an entity.
636(a)) and title I of the CARES Act (Public Executive Office for United States Trustees a (B) COVERED ENTITY.—
Law 116–136) under this section shall be effec- written determination that, subject to satis- (i) DEFINITION.—The term ‘‘covered entity’’
tive as if included in the CARES Act and fying any other eligibility requirements, any means an entity in which a covered indi-
shall apply to any loan made pursuant to debtor in possession or trustee that is au- vidual directly or indirectly holds a control-
section 7(a)(36) of the Small Business Act (15 thorized to operate the business of the debt- ling interest.
U.S.C. 636(a)(36)). or under section 1183, 1184, 1203, 1204, or 1304 (ii) TREATMENT OF SECURITIES.—For the
(r) BANKRUPTCY PROVISIONS.— of title 11, United States Code, would be eli- purpose of determining whether an entity is
(1) IN GENERAL.—Section 364 of title 11, gible for a loan under paragraphs (36) and (37) a covered entity, the securities owned, con-
United States Code, is amended by adding at of section 7(a) of the Small Business Act (15 trolled, or held by 2 or more individuals who
the end the following: U.S.C. 636(a)); and are related as described in subparagraph
‘‘(g)(1) The court, after notice and a hear- (ii) apply to any case pending on or com- (C)(ii) shall be aggregated.
ing, may authorize a debtor in possession or menced on or after the date described in (C) COVERED INDIVIDUAL.—The term ‘‘cov-
a trustee that is authorized to operate the clause (i). ered individual’’ means—
business of the debtor under section 1183, (B) SUNSET.— (i) the President, the Vice President, the
1184, 1203, 1204, or 1304 of this title to obtain (i) IN GENERAL.—If the amendments made head of an Executive department, or a Mem-
a loan under paragraph (36) or (37) of section ber of Congress; and
by this subsection take effect under subpara-
7(a) of the Small Business Act (15 U.S.C. (ii) the spouse, child, son-in-law, or daugh-
graph (A), effective on the date that is 2
636(a)), and such loan shall be treated as a ter-in-law, as determined under applicable
years after the date of enactment of this
debt to the extent the loan is not forgiven in common law, of an individual described in
Act—
accordance with section 1106 of the CARES
(I) section 364 of title 11, United States clause (i).
Act (15 U.S.C. 9005) or subparagraph (H) of
Code, is amended by striking subsection (g); (D) EXECUTIVE DEPARTMENT.—The term
such paragraph (37), as applicable, with pri-
(II) section 503(b) of title 11, United States ‘‘Executive department’’ has the meaning
ority equal to a claim of the kind specified
Code, is amended— given the term in section 101 of title 5,
in subsection (c)(1) of this section.
‘‘(2) The trustee may incur debt described (aa) in paragraph (8)(B), by adding ‘‘and’’ United States Code.
in paragraph (1) notwithstanding any provi- at the end; (E) MEMBER OF CONGRESS.—The term
sion in a contract, prior order authorizing (bb) in paragraph (9), by striking ‘‘; and’’ at ‘‘Member of Congress’’ means a Member of
the trustee to incur debt under this section, the end and inserting a period; and the Senate or House of Representatives, a
prior order authorizing the trustee to use (cc) by striking paragraph (10); Delegate to the House of Representatives,
cash collateral under section 363, or applica- (III) section 1191 of title 11, United States and the Resident Commissioner from Puerto
ble law that prohibits the debtor from incur- Code, is amended by striking subsection (f); Rico.
ring additional debt. (IV) section 1225 of title 11, United States (F) EQUITY INTEREST.—The term ‘‘equity
‘‘(3) The court shall hold a hearing within Code, is amended by striking subsection (d); interest’’ means—
7 days after the filing and service of the mo- and (i) a share in an entity, without regard to
tion to obtain a loan described in paragraph (V) section 1325 of title 11, United States whether the share is—
(1).’’. Code, is amended by striking subsection (d). (I) transferable; or
(2) ALLOWANCE OF ADMINISTRATIVE EX- (ii) APPLICABILITY.—Notwithstanding the (II) classified as stock or anything similar;
PENSES.—Section 503(b) of title 11, United amendments made by clause (i) of this sub- (ii) a capital or profit interest in a limited
States Code, is amended— paragraph, if the amendments made by para- liability company or partnership; or
(A) in paragraph (8)(B), by striking ‘‘and’’ graphs (1), (2), (3), (4), and (5) take effect (iii) a warrant or right, other than a right
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at the end; under subparagraph (A) of this paragraph, to convert, to purchase, sell, or subscribe to
(B) in paragraph (9), by striking the period such amendments shall apply to any case a share or interest described in clause (i) or
at the end and inserting ‘‘; and’’; and under title 11, United States Code, com- (ii), respectively.
(C) by adding at the end the following: menced before the date that is 2 years after (2) REQUIREMENT.—The principal executive
‘‘(10) any debt incurred under section the date of enactment of this Act. officer and the principal financial officer, or
364(g)(1) of this title.’’. (s) OVERSIGHT.— individuals performing similar functions, of
(3) CONFIRMATION OF PLAN FOR REORGANIZA- (1) COMPLIANCE WITH OVERSIGHT REQUIRE- an entity seeking to enter a transaction
TION.—Section 1191 of title 11, United States MENTS.— made under paragraph (36) or (37) of section
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S4764 CONGRESSIONAL RECORD — SENATE August 4, 2020
7(a) of the Small Business Act (15 U.S.C. (1) IN GENERAL.—The amounts provided ‘‘(ii) the total amount expended by the
636(a)), as added and amended by this sec- under this section are designated as an emer- State for the 1st quarter of fiscal year 2020
tion, shall, before that transaction is ap- gency requirement pursuant to section 4(g) under the State program funded under this
proved, disclose to the Administrator wheth- of the Statutory Pay-As-You-Go Act of 2010 part or any other State program funded with
er the entity is a covered entity. (2 U.S.C. 933(g)). qualified State expenditures (as so defined)
(3) APPLICABILITY.—The requirement under (2) DESIGNATION IN SENATE.—In the Senate, for basic assistance, non-recurrent short-
paragraph (2)— this section is designated as an emergency term benefits, and work supports for eligible
(A) shall apply with respect to any trans- requirement pursuant to section 4112(a) of H. families.
action made under paragraph (36) or (37) of Con. Res. 71 (115th Congress), the concurrent ‘‘(C) AMOUNT OF GRANT.—Subject to para-
section 7(a) of the Small Business Act (15 resolution on the budget for fiscal year 2018. graph (4), the amount of the grant payable to
U.S.C. 636(a)), as added and amended by this a State under this paragraph for a quarter
section, on or after the date of enactment of SA 2509. Mr. GRASSLEY submitted
shall be the amount equal to 80 percent of
this Act; and an amendment intended to be proposed the excess of the expenditures for the quar-
(B) shall not apply with respect to— to amendment SA 2499 proposed by Mr. ter described in clause (i) of subparagraph
(i) any transaction described in subpara- MCCONNELL to the bill S. 178, to con- (B) over the expenditures for the 1st quarter
graph (A) that was made before the date of demn gross human rights violations of of fiscal year 2020 described in clause (ii) of
enactment of this Act; or ethnic Turkic Muslims in Xinjiang, and that subparagraph.
(ii) forgiveness under section 1106 of the calling for an end to arbitrary deten- ‘‘(D) AUTHORITY TO MAKE NECESSARY AD-
CARES Act (15 U.S.C. 9005) or any other pro- tion, torture, and harassment of these JUSTMENTS TO DATA AND COLLECT NEEDED
vision of law of any loan associated with any DATA.—In determining the expenditures of a
transaction described in subparagraph (A)
communities inside and outside China;
which was ordered to lie on the table; State for basic assistance, non-recurrent
that was made before the date of enactment
as follows: short-term benefits, and work supports dur-
of this Act.
At the end, add the following: ing any quarter for which the State requests
(u) COMMITMENT AUTHORITY AND APPRO- funds under this subsection, and for the 1st
PRIATIONS.— SEC. ll. TANF CORONAVIRUS EMERGENCY
FUND. quarter of fiscal year 2020, the Secretary
(1) COMMITMENT AUTHORITY.—Section
(a) TEMPORARY FUND.— may make appropriate adjustments to the
1102(b) of the CARES Act (Public Law 116– data, on a State-by-State basis, to ensure
136) is amended— (1) IN GENERAL.—Section 403 of the Social
Security Act (42 U.S.C. 603) is amended by that the data are comparable. The Secretary
(A) in paragraph (1)— may develop a mechanism for collecting ex-
(i) in the paragraph heading, by inserting adding at the end the following:
‘‘(c) TANF CORONAVIRUS EMERGENCY penditure data, including procedures which
‘‘AND SECOND DRAW’’ after ‘‘PPP’’; allow States to make reasonable estimates,
FUND.—
(ii) by striking ‘‘August 8, 2020’’ and insert-
‘‘(1) ESTABLISHMENT.—There is established and may set deadlines for making revisions
ing ‘‘December 31, 2020’’;
in the Treasury of the United States a fund to the data.
(iii) by striking ‘‘paragraph (36)’’ and in-
which shall be known as the ‘Coronavirus ‘‘(E) AVAILABILITY OF FUNDS.— Funds paid
serting ‘‘paragraphs (36) and (37)’’; and
Emergency Fund for State Temporary As- to a State from a grant made for any quarter
(iv) by striking ‘‘$659,000,000,000’’ and in-
sistance for Needy Families Programs’ (in of fiscal year 2020 or 2021 shall remain avail-
serting ‘‘$816,690,000,000’’; and this subsection referred to as the ‘TANF able for use by the State through September
(B) by amending paragraph (2) to read as Coronavirus Emergency Fund’). 30, 2022.
follows: ‘‘(2) DEPOSITS INTO FUND.— ‘‘(4) GRANT LIMITED TO STATE PROPORTIONAL
‘‘(2) OTHER 7(A) LOANS.—During fiscal year ‘‘(A) IN GENERAL.—Out of any money in the SHARE OF CHILDREN IN POVERTY.—
2020, the amount authorized for commit- Treasury of the United States not otherwise ‘‘(A) IN GENERAL.—With respect to a State,
ments for section 7(a) of the Small Business appropriated, there are appropriated for the
Act (15 U.S.C. 636(a)) under the heading the aggregate amount of the grants payable
period of fiscal years 2020 through 2021, to the State under paragraph (3) for the 3rd
‘Small Business Administration—Business $2,000,000,000 for payment to the TANF
Loans Program Account’ in the Financial and 4th quarters of fiscal year 2020 and each
Coronavirus Emergency Fund. quarter of fiscal year 2021 shall not exceed
Services and General Government Appropria- ‘‘(B) USE OF FUNDS.—Subject to subpara-
tions Act, 2020 (division C of Public Law 116– the State child poverty proportion amount
graph (C), the amounts appropriated to the determined for the State for fiscal year 2020
193) shall apply with respect to any commit- TANF Coronavirus Emergency Fund under
ments under such section 7(a) other than under subparagraph (B).
subparagraph (A) shall be used to make ‘‘(B) STATE CHILD POVERTY PROPORTION
under paragraphs (36) and (37) of such section grants to States in fiscal years 2020 and 2021
7(a).’’. AMOUNT.—The State child poverty proportion
in accordance with the requirements of para- amount determined under this subparagraph
(2) DIRECT APPROPRIATIONS.— graph (3).
(A) RESCISSION.—With respect to unobli- for a State for fiscal year 2020 is the product
‘‘(C) ADMINISTRATION.—The Secretary may
gated balances under the heading ‘‘ ‘Small of—
reserve up to $4,000,000 of the amount appro-
Business Administration—Business Loans ‘‘(i) $2,000,000,000; and
priated for the period of fiscal years 2020
Program Account, CARES Act’’ as of the day ‘‘(ii) the quotient of—
through 2021 under subparagraph (A) for ex-
before the date of enactment of this Act, ‘‘(I) the number of children in families
penses related to administering this sub-
$100,000,000,000 shall be rescinded and depos- section. with income below the poverty line in the
ited into the general fund of the Treasury. ‘‘(D) LIMITATION.—In no case may the Sec- State (as determined under subparagraph
(B) NEW DIRECT APPROPRIATIONS FOR PPP retary make a grant from the TANF (C)); and
LOANS, SECOND DRAW LOANS, AND THE MBDA.— Coronavirus Emergency Fund for a fiscal ‘‘(II) the number of children in families
(i) PPP AND SECOND DRAW LOANS.—There is year after fiscal year 2021. with income below the poverty line in all
appropriated, out of amounts in the Treas- ‘‘(3) GRANTS TO STATES FOR INCREASED EX- States (as so determined).
ury not otherwise appropriated, for the fiscal PENDITURES FOR BASIC ASSISTANCE, NON-RE- ‘‘(C) DATA.—
year ending September 30, 2020, to remain CURRENT SHORT TERM BENEFITS, AND WORK ‘‘(i) IN GENERAL.—For purposes of subpara-
available until September 30, 2021, for addi- SUPPORTS.— graph (B)(ii), subject to clause (ii) of this
tional amounts— ‘‘(A) IN GENERAL.—For each of the 3rd and subparagraph, the number of children in
(I) $257,690,000,000 under the heading 4th quarters of fiscal year 2020 and each families with income below the poverty line
‘‘Small Business Administration—Business quarter of fiscal year 2021, the Secretary shall be determined based on the most recent
Loans Program Account, CARES Act’’ for shall make a grant from the TANF data available from the Bureau of the Cen-
the cost of guaranteed loans as authorized Coronavirus Emergency Fund to each State sus.
under paragraph (36) and (37) of section 7(a) that— ‘‘(ii) OTHER DATA.—The number of children
of the Small Business Act (15 U.S.C. 636(a)), ‘‘(i) requests a grant under this paragraph in families with income below the poverty
as amended and added by this Act; and for the quarter; and line in the case of—
(II) $10,000,000 under the heading under the ‘‘(ii) meets the requirements of subpara- ‘‘(I) Puerto Rico, the United States Virgin
heading ‘‘Department of Commerce—Minor- graph (B) for the quarter. Islands, Guam, and American Samoa may be
ity Business Development Agency’’ for mi- ‘‘(B) INCREASED EXPENDITURES.—A State determined on the basis of the most recent
nority business centers of the Minority Busi- meets the requirements of this subparagraph data are available from the Bureau of the
ness Development Agency to provide tech- for a quarter if— Census or such other poverty data as the
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nical assistance to small business concerns. ‘‘(i) the total amount expended by the Secretary determines appropriate); and
(C) AVAILABILITY OF AMOUNTS APPRO- State for the quarter under the State pro- ‘‘(II) an Indian tribe, shall be determined
PRIATED FOR THE OFFICE OF INSPECTOR GEN- gram funded under this part or any other in proportion to the tribal family assistance
ERAL.—Section 1107(a)(3) of the CARES Act State program funded with qualified State grant paid to the Indian tribe for fiscal year
(15 U.S.C. 9006(a)(3)) is amended by striking expenditures (as defined in section 2020.
‘‘September 20, 2024’’ and inserting ‘‘ex- 409(a)(7)(B)(i)) for basic assistance, non-re- ‘‘(5) DEFINITIONS.—In this subsection:
pended’’. current short-term benefits, and work sup- ‘‘(A) BASIC ASSISTANCE.—The term ‘basic
(v) EMERGENCY DESIGNATION.— ports for eligible families, exceeds assistance’ means assistance including cash,
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4765
payments, vouchers, and other forms of ben- SA 2511. Mr. GRASSLEY submitted Fund an amount, as estimated by the Chief
efits designed to meet a family’s ongoing an amendment intended to be proposed Actuary of the Centers for Medicare & Med-
basic needs as defined by the Secretary. to amendment SA 2499 proposed by Mr. icaid Services, equal to amounts paid under
‘‘(B) ELIGIBLE FAMILIES.— the advance payment program under section
MCCONNELL to the bill S. 178, to con-
‘‘(i) IN GENERAL.—The term ‘eligible fam- 421.214 of title 42, Code of Federal Regula-
ily’ means a family (including a family of demn gross human rights violations of tions (or any successor regulation) during
one) that— ethnic Turkic Muslims in Xinjiang, and the period beginning on March 28, 2020, and
‘‘(I) has 1 or more children who have not calling for an end to arbitrary deten- ending on July 9, 2020.
attained 18 years of age; and tion, torture, and harassment of these ‘‘(2) There shall be transferred from the
‘‘(II) is in need as a result of the public communities inside and outside China; Trust Fund to the General Fund of the
health emergency with respect to the which was ordered to lie on the table; Treasury amounts equivalent to the sum of—
Coronavirus Disease 2019 (COVID-19) as de- as follows: ‘‘(A) the amounts by which claims have
termined by the State in accordance with offset (in whole or in part) the amount of
At the end, add the following:
clause (ii). such advance payments described in para-
TITLE II—SUPPORTING PATIENTS, PRO- graph (1); and
‘‘(ii) CRITERIA FOR NEED BASED ON COVID-19
VIDERS, OLDER AMERICANS, AND FOS- ‘‘(B) the amount of such advance payments
PUBLIC HEALTH EMERGENCY.—A State shall
TER YOUTH IN RESPONDING TO COVID– that has been repaid (in whole or in part),
define and publish on a publicly available
19 under the advance payment program under
website maintained by the State the criteria
for determining a family is in need as a re- Subtitle A—Promoting Access to Care and such section 421.214 (or any such successor
sult of the public health emergency with re- Services regulation).
spect to the Coronavirus Disease 2019 SEC. 201. MAINTAINING 2021 MEDICARE PART B ‘‘(3) Amounts described in paragraphs (1)
(COVID-19) and shall report such criteria to PREMIUM AND DEDUCTIBLE AT 2020 and (2) shall be transferred from time to
LEVELS CONSISTENT WITH ACTU- time as appropriate.’’.
the Secretary. The Secretary shall publish
ARIALLY FAIR RATES. (d) INDENTATION CORRECTION.—Section
all the State criteria reported under this
(a) 2021 PREMIUM AND DEDUCTIBLE AND RE- 1839(i)(3)(A)(ii) of the Social Security Act (42
clause on a publicly available website main-
PAYMENT THROUGH FUTURE PREMIUMS.—Sec- U.S.C. 1395r(i)(3)(A)(ii)) is amended by mov-
tained by the Secretary.
tion 1839(a) of the Social Security Act (42 ing the indentation of subclause (I) two ems
‘‘(C) NON-RECURRENT SHORT-TERM BENE-
U.S.C. 1395r(a)) is amended— to the right.
FITS.—The term ‘non-recurrent short-term
(1) in the second sentence of paragraph (1), SEC. 202. IMPROVEMENTS TO THE MEDICARE
benefits’ means benefits intended to address
by striking ‘‘(5) and (6)’’ and inserting ‘‘(5), HOSPITAL ACCELERATED AND AD-
a specific crisis or need as defined by the
(6), and (7)’’; VANCE PAYMENTS PROGRAMS DUR-
Secretary.
(2) in paragraph (6)(C)— ING THE COVID–19 PUBLIC HEALTH
‘‘(D) POVERTY LINE.—The term ‘poverty EMERGENCY.
(A) in clause (i), by striking ‘‘section
line’ means the income official poverty line, (a) PART A.—
1844(d)(1)’’ and inserting ‘‘subsections (d)(1)
as defined by the Office of Management and (1) REPAYMENT PERIODS.—Section
and (e)(1) of section 1844’’; and
Budget, and revised annually in accordance 1815(f)(2)(C) of the Social Security Act (42
(B) in clause (ii), by striking ‘‘paragraph
with section 673(2) of the Community Serv- U.S.C. 1395g(f)(2)(C)) is amended—
(5)’’ and inserting ‘‘paragraphs (5) and (7)’’;
ices Block Grant Act (42 U.S.C. 9902(2)). (A) in clause (i), by striking ‘‘120 days’’ and
and
‘‘(E) STATE.—The term ‘State’ has the inserting ‘‘270 days’’; and
(3) by adding at the end the following:
meaning given that term in section 419(5) ‘‘(7) In applying this part (including sub- (B) in clause (ii), by striking ‘‘12 months’’
and includes Indian tribes, as defined in sec- section (i) and section 1833(b)), the monthly and inserting ‘‘18 months’’.
tion 419(4). actuarial rate for enrollees age 65 and over (2) AUTHORITY FOR DISCRETION.—Section
‘‘(F) WORK SUPPORTS.—The term ‘work sup- for 2021 shall be the same as the monthly ac- 1815(f)(2)(A)(ii) of the Social Security Act (42
ports’ means benefits provided to help fami- tuarial rate for enrollees age 65 and over for U.S.C. 1395g(f)(2)(A)(ii)) is amended by insert-
lies obtain, retain, or advance in employ- 2020.’’. ing ‘‘(or, with respect to requests submitted
ment as defined by the Secretary.’’. (b) TRANSITIONAL GOVERNMENT CONTRIBU- to the Secretary on or after July 9, 2020,
(2) REPEAL.—Effective October 1, 2021, sub- TION.—Section 1844 of the Social Security may)’’after ‘‘shall.’’.
section (c) of section 403 of the Social Secu- Act (42 U.S.C. 1395w) is amended— (b) PART B.—In carrying out the advance
rity Act (42 U.S.C. 603) (as added by para- (1) in subsection (a), by adding at the end payments program described in section
graph (1)) is repealed. the following new sentence: ‘‘In applying 421.214 of title 42, Code of Federal Regula-
(b) DISREGARD FROM LIMITATION ON TOTAL paragraph (1), the amounts transferred under tions (or a successor regulation), the Sec-
PAYMENTS TO TERRITORIES.— subsection (e)(1) with respect to enrollees de- retary of Health and Human Services, in the
(1) IN GENERAL.—Section 1108(a)(2) of the scribed in subparagraphs (A) and (B) of such case of a payment made under such program
Social Security Act (42 U.S.C. 1308(a)(2)) is subsection shall be treated as premiums pay- during the emergency period described in
amended by inserting ‘‘403(c)(3),’’ after able and deposited in the Trust Fund under section 1135(g)(1)(B) of the Social Security
‘‘403(a)(5),’’. subparagraphs (A) and (B), respectively, of Act (42 U.S.C. 1320b–5(g)(1)(B)), upon request
(2) SUNSET.—Effective October 1, 2021, sec- paragraph (1).’’; and of the supplier receiving such payment,
tion 1108(a)(2) of the Social Security Act (42 (2) by adding at the end the following: shall—
U.S.C. 1308(a)(2)) is amended by striking ‘‘(e)(1) For 2021, there shall be transferred (1) provide up to 270 days before claims are
‘‘403(c)(3),’’ (as added by paragraph (1)). from the General Fund to the Trust Fund an offset to recoup the payment; and
amount, as estimated by the Chief Actuary (2) allow not less than 14 months from the
SA 2510. Mr. GRASSLEY submitted of the Centers for Medicare & Medicaid Serv- date of the first advance payment before re-
an amendment intended to be proposed ices, equal to the reduction in aggregate pre- quiring that the outstanding balance be paid
to amendment SA 2499 proposed by Mr. miums payable under this part for a month in full.
MCCONNELL to the bill S. 178, to con- in such year (excluding any changes in (c) EFFECTIVE DATE.—The amendments
amounts collected under section 1839(i)) that made by this section shall take effect as if
demn gross human rights violations of
are attributable to the application of section included in the enactment of the
ethnic Turkic Muslims in Xinjiang, and 1839(a)(7) with respect to—
calling for an end to arbitrary deten- Coronavirus Aid, Relief, and Economic Secu-
‘‘(A) enrollees age 65 and over; and
rity Act (Public Law 116–136).
tion, torture, and harassment of these ‘‘(B) enrollees under age 65.
(d) IMPLEMENTATION.—Notwithstanding
communities inside and outside China; Such amounts shall be transferred from time
to time as appropriate. any other provision of law, the Secretary of
which was ordered to lie on the table; ‘‘(2) Premium increases affected under sec- Health and Human Services may implement
as follows: tion 1839(a)(6) shall not be taken into ac- the provisions of, and the amendments made
At the end, add the following: count in applying subsection (a). by, this section by program instruction or
SEC. ll. SUPPLEMENTAL EMERGENCY UNEM- ‘‘(3) There shall be transferred from the otherwise.
PLOYMENT RELIEF FOR GOVERN- Trust Fund to the General Fund of the SEC. 203. AUTHORITY TO EXTEND MEDICARE
MENTAL ENTITIES AND NONPROFIT Treasury amounts equivalent to the addi- TELEHEALTH WAIVERS.
ORGANIZATIONS. tional premiums payable as a result of the (a) AUTHORITY.—Section 1834(m) of the So-
(a) IN GENERAL.—Section 903(i)(1)(B) of the application of section 1839(a)(6), excluding cial Security Act (42 U.S.C. 1395m(m)) is
Social Security Act (42 U.S.C. 1103(i)(1)(B)) is amended by adding at the end the following
SSpencer on DSK126QN23PROD with SENATE
the aggregate payments attributable to the
amended by striking ‘‘one-half’’ and insert- application of section 1839(i)(3)(A)(ii)(II).’’. new paragraph:
ing ‘‘75 percent’’. (c) ADDITIONAL TRANSITIONAL GOVERNMENT ‘‘(9) AUTHORITY TO EXTEND TELEHEALTH
(b) EFFECTIVE DATE.—The amendment CONTRIBUTION.—Section 1844 of the Social Se- WAIVERS AND POLICIES.—
made by subsection (a) shall take effect as if curity Act (42 U.S.C. 1395w), as amended by ‘‘(A) AUTHORITY.—Notwithstanding the
included in the enactment of the Relief for subsection (b)(2), is amended by adding at preceding provisions of this subsection and
Workers Affected by Coronavirus Act (con- the end the following: section 1135, subject to subparagraph (B), if
tained in subtitle A of title II of division A ‘‘(f)(1) There shall be transferred from the the emergency period under section
of the CARES Act (Public Law 116–136)). General Fund of the Treasury to the Trust 1135(g)(1)(B) expires prior to December 31,
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S4766 CONGRESSIONAL RECORD — SENATE August 4, 2020
2021, the authority provided the Secretary (A) STUDY.—The Secretary shall conduct a the first day after the end of such emergency
under section 1135(b)(8) to waive or modify study on the impact of telehealth and other period’’ after ‘‘1135(g)(1)(B)’’;
requirements with respect to a telehealth virtual services furnished under the Medi- (ii) in clause (ii), by striking ‘‘and’’ at the
service, and modifications of policies with care program under title XVIII of the Social end;
respect to telehealth services made by in- Security Act (42 U.S.C. 1395 et seq.) during (iii) by redesignating clause (iii) as clause
terim final rule applicable to such period, the emergency period described in section (iv); and
shall be extended through December 31, 2021. 1135(g)(1)(B) of such Act (42 U.S.C. 1320b– (iv) by inserting after clause (ii) the fol-
‘‘(B) NO REQUIREMENT TO EXTEND.— Noth- 5(g)(1)(B)). In conducting such study, the lowing new clause:
ing in subparagraph (A) shall require the Secretary shall— ‘‘(iii) the geographic requirements de-
Secretary to extend any specific waiver or (i) assess the impact of such services on ac- scribed in paragraph (4)(C)(i) shall not apply
modification or modifications of policies cess to care, health outcomes, and spending with respect to such a telehealth service;
that the Secretary does not find appropriate by type of physician, practitioner, or other and’’;
for extension. entity, and by patient demographics and (C) in subparagraph (B)(i)—
‘‘(C) IMPLEMENTATION.—Notwithstanding other characteristics that include— (i) in the first sentence, by inserting ‘‘and
any provision of law, the provisions of this (I) age, gender, race, and type of eligibility the 5-year period beginning on the first day
paragraph may be implemented by interim for the Medicare program; after the end of such emergency period’’ be-
final rule, program instructions or other- (II) dual eligibility for both the Medicare fore the period; and
wise.’’. program and the Medicaid program under (ii) in the third sentence, by striking ‘‘pro-
(b) MEDPAC EVALUATION AND REPORT.— title XIX of such Act (42 U.S.C. 1396 et seq.); gram instruction or otherwise’’ and inserting
(1) STUDY.— (III) residing in an area of low-population ‘‘interim final rule, program instruction, or
(A) IN GENERAL.—The Medicare Payment density or a health professional shortage otherwise’’; and
Advisory Commission (in this subsection re- area (as defined in section 332(a)(1)(A) of the (D) by adding at the end the following new
ferred to as the ‘‘Commission’’) shall conduct Public Health Service Act (42 U.S.C. subparagraph:
an evaluation of— 254e(a)(1)(A))) ; ‘‘(C) REQUIREMENT DURING ADDITIONAL PE-
(i) the expansions of telehealth services (IV) diagnoses, such as a diagnosis of RIOD.—
under part B of title XVII of the Social Secu- COVID–19, a chronic condition, or a mental ‘‘(i) IN GENERAL.—During the 5-year period
rity Act related to the COVID-19 public health disorder or substance use disorder; beginning on the first day after the end of
health emergency described in section (V) telecommunication modality used, in- the emergency period described in section
1135(g)(1)(B) of such Act (42 U.S.C. 1320b– 1135(g)(1)(B), payment may only be made
cluding extent to which the services are fur-
5(g)(1)(B)); and
nished using audio-only technology; under this paragraph for a telehealth service
(ii) the appropriate treatment of such ex-
(VI) residing in a State other than the described in subparagraph (A)(i) that is fur-
pansions after the expiration of such public
State in which the furnishing physician, nished to an eligible telehealth individual if
health emergency.
practitioner, or other entity is located; and such service is furnished by a qualified pro-
(B) ANALYSIS.—The evaluation under sub-
(VII) other characteristics and information vider (as defined in clause (ii)).
paragraph (A) shall include an analysis of
determined appropriate by the Secretary; ‘‘(ii) DEFINITION OF QUALIFIED PROVIDER.—
each the following:
and For purposes of this subparagraph, the term
(i) Which, if any, of such expansions should
(ii) to the extent feasible, assess such im- ‘qualified provider’ means, with respect to a
be continued after the expiration of the such
pact based on— telehealth service described in subparagraph
public health emergency,
(ii) Whether any such continued expan- (I) the type of technology used to furnish (A)(i) that is furnished to an eligible tele-
sions should be limited to, or differentially the service; health individual, a Federally qualified
applied to, clinicians participating in certain (II) the extent to which patient privacy is health center or rural health clinic that fur-
value-based payment models. protected; nished to such individual, during the 3-year
(iii) How Medicare should pay for tele- (III) the extent to which documented or period ending on the date the telehealth
health services after the expiration of such suspected fraud or abuse occurred; and service was furnished, an item or service in
public health emergency, and the implica- (IV) patient satisfaction. person for which—
tions of payment approaches on aggregate (B) USE OF INFORMATION.—The Secretary ‘‘(I) payment was made under this title; or
Medicare program spending, may use reliable non-governmental sources ‘‘(II) such payment would have been made
(iv) Medicare program integrity and bene- of information in assessing the impact of if such individual were entitled to, or en-
ficiary safeguards that may be warranted characteristics described in subparagraph rolled for, benefits under this title at the
with the coverage of telehealth services. (A) under the study. time such item or service was furnished.’’.
(C) REPORT.— (b) EFFECTIVE DATE.—The amendments
(v) The implications of expanded Medicare
(i) INTERIM PROVISION OF INFORMATION.— made by this section (other than the amend-
coverage of telehealth services for bene-
The Secretary shall, as determined appro- ment made by subsection (a)(2)(D)) shall
ficiary access to care and the quality of care
priate, periodically during such emergency take effect as if included in the enactment of
provided via telehealth.
period, post on the internet website of the the Coronavirus Aid, Relief, and Economic
(vi) Other areas determined appropriate by
Centers for Medicare & Medicaid services Security Act (Public Law 116–136).
the Commission.
data on utilization of telehealth and other SEC. 205. TEMPORARY CARRYOVER FOR HEALTH
(2) REPORT.—Not later than June 15, 2021, AND DEPENDENT CARE FLEXIBLE
the Commission shall submit to Congress a virtual services under the Medicare program
SPENDING ARRANGEMENTS.
report containing the results of the evalua- and the impact of characteristics described
in subparagraph (A) on such utilization. (a) INCREASE IN CARRYOVER FOR HEALTH
tion conducted under paragraph (1), together FLEXIBLE SPENDING ARRANGEMENTS.—A plan
with recommendations for such legislation (ii) REPORT.—Not later than 15 months
after date of enactment of this Act, the Sec- or other arrangement that otherwise satis-
and administrative action as the Commis- fies all of the applicable requirements of sec-
sion determines appropriate. retary shall submit to Congress a report on
the study conducted under subparagraph (A), tions 106 and 125 of the Internal Revenue
(c) HHS PROVISION OF INFORMATION AND Code of 1986 (including any rules or regula-
STUDY AND REPORT.— together with recommendations for such leg-
tions thereunder) shall not fail to be treated
(1) PRE–COVID–19 PUBLIC HEALTH EMERGENCY islation and administrative action as the
as a cafeteria plan or health flexible spend-
TELEHEALTH AUTHORITY.—Not later than 3 Secretary determines appropriate.
ing arrangement merely because such plan
months after the date of enactment of this SEC. 204. EXTENDING MEDICARE TELEHEALTH or arrangement permits participants to
Act, the Secretary of Health and Human FLEXIBILITIES FOR FEDERALLY carry over an amount not in excess of $2,750
Services (in this subsection referred to as the QUALIFIED HEALTH CENTERS AND
RURAL HEALTH CLINICS.
of unused benefits or contributions remain-
‘‘Secretary’’) shall make available on the ing in a health flexible spending arrange-
internet website of the Centers for Medicare (a) IN GENERAL.—Section 1834(m) of the So- ment from the plan year ending in 2020 to
& Medicaid Services information describing cial Security Act (42 U.S.C. 1395m(m)) is the plan year ending in 2021.
the requirements applicable to telehealth amended— (b) CARRYOVER FOR DEPENDENT CARE
services and other virtual services under the (1) in paragraph (4)(C)— FLEXIBLE SPENDING ARRANGEMENTS.—A plan
original Medicare fee-for-service program (A) in clause (i), in the matter preceding or other arrangement that otherwise satis-
under parts A and B of title XVIII of the So- subclause (I), by striking ‘‘and (7)’’ and in- fies all applicable requirements of sections
cial Security Act (42 U.S.C. 1395 et seq.) and serting ‘‘(7), and (8)’’; and 106, 125, and 129 of the Internal Revenue Code
the Medicare Advantage program under part (B) in clause (ii)(X), by inserting ‘‘or para- of 1986 (including any rules or regulations
SSpencer on DSK126QN23PROD with SENATE
C of such title prior to the waiver or modi- graph (8)(A)(i)’’ before the period; and thereunder) shall not fail to be treated as a
fication of such requirements during the (2) in paragraph (8)— cafeteria plan or dependent care flexible
emergency period described in section (A) in the paragraph heading by inserting spending arrangement merely because such
1135(g)(1)(B) of the Social Security Act (42 ‘‘AND FOR AN ADDITIONAL PERIOD AFTER’’ after plan or arrangement permits participants to
U.S.C. 1320b–5(g)(1)(B)), as established by ‘‘DURING ’’; carry over (under rules similar to the rules
statute, regulation, and sub-regulatory guid- (B) in subparagraph (A)— applicable to health flexible spending ar-
ance under such title. (i) in the matter preceding clause (i), by in- rangements) an amount, not in excess of the
(2) STUDY AND REPORT.— serting ‘‘and the 5-year period beginning on amount in effect under section 129(a)(2)(A) of
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4767
such Code, of unused benefits or contribu- ‘‘(v) TERMINATION.—This subparagraph fiscal year 2020 for making grants in accord-
tions remaining in a dependent care flexible shall not apply to any taxable year begin- ance with this section to the highest State
spending arrangement from the plan year ning after December 31, 2021.’’. courts described in section 438 of the Social
ending in 2020 to the plan year ending in 2021. (b) EFFECTIVE DATE.—The amendment Security Act (42 U.S.C. 629h). Grants made
(c) RETROACTIVE APPLICATION.—An em- made by this section shall apply to taxable under this section shall be considered to be
ployer shall be permitted to amend its cafe- years beginning after December 31, 2019. Court Improvement Program grants made
teria plan to effectuate the carry over al- SEC. 207. SUPPORT FOR OLDER FOSTER YOUTH. under such section 438, subject to the suc-
lowed under subsection (a) or (b), provided (a) FUNDING INCREASES.—The dollar ceeding provisions of this section.
that such amendment— amount specified in section 477(h)(1) of the (b) DISTRIBUTION OF FUNDS.—
(1) is adopted not later than the last day of Social Security Act (42 U.S.C. 677(h)(1)) for (1) IN GENERAL.—From the amount appro-
the plan year ending in 2020; and fiscal year 2020 is deemed to be $193,000,000. priated under subsection (a), the Secretary
(2) provides that the carry over allowed (b) PROGRAMMATIC FLEXIBILITY.—During shall—
under subsection (a) or (b) shall be in effect the COVID–19 public health emergency: (A) reserve up to $500,000 for Tribal court
as of the first day of the plan year ending in (1) SUSPENSION OF CERTAIN REQUIREMENTS improvement activities; and
2020. UNDER THE EDUCATION AND TRAINING VOUCHER (B) pay from the amount remaining after
(d) DEFINITIONS.—Any term used in this PROGRAM.—The Secretary may allow a State the application of subparagraph (A), a grant
section which is also used in section 106, 125, to waive the applicability of the requirement to each highest State court that is approved
or 129 of the Internal Revenue Code of 1986 or in section 477(i)(3) of the Social Security Act to receive a grant under section 438 of the
the rules or regulations thereunder shall (42 U.S.C. 677(i)(3)) that a youth must be en- Social Security Act for the purpose described
have the same meaning as when used in such rolled in a postsecondary education or train- in subsection (a)(3) of that section for fiscal
section or rules or regulations. ing program or making satisfactory progress year 2020 .
SEC. 206. ON-SITE EMPLOYEE CLINICS. toward completion of that program if a (2) AMOUNT.—The amount of the grant
(a) IN GENERAL.—Paragraph (1) of section youth is unable to meet these requirements awarded to a highest State court under this
223(c) of the Internal Revenue Code of 1986 is due to the public health emergency. section is equal to the sum of—
amended by adding at the end the following (2) AUTHORITY TO WAIVE LIMITATIONS ON (A) $85,000; and
new subparagraph: PERCENTAGE OF FUNDS USED FOR HOUSING AS- (B) the amount that bears the same ratio
‘‘(D) SPECIAL RULE FOR QUALIFIED ITEMS SISTANCE AND ELIGIBILITY FOR SUCH ASSIST- to the amount appropriated under subsection
AND SERVICES.— ANCE.—Notwithstanding subsections (b)(3)(B) (a) that remains after the application of
‘‘(i) IN GENERAL.—For purposes of subpara- and (b)(3)(C) of section 477 of the Social Se- paragraph (1)(A) and subparagraph (A) of this
graph (A)(ii), an individual shall not be curity Act (42 U.S.C. 677), a State may— paragraph, as the number of individuals in
treated as covered under a health plan de- (A) use more than 30 percent of the the State who have not attained 21 years of
scribed in subclauses (I) and (II) of such sub- amounts paid to the State from its allot- age bears to the total number of such indi-
paragraph merely because the individual is ment under subsection (c) of such section for viduals in all States (based on the most re-
eligible to receive, or receives, qualified a fiscal year for room or board payments; cent year for which data are available from
items and services— and the Bureau of the Census).
‘‘(I) at a healthcare facility located at a fa- (B) expend amounts paid to the State from (3) OTHER RULES.—
cility owned or leased by the employer of the its allotment under subsection (c) of such (A) IN GENERAL.—The grants awarded to
individual (or of the individual’s spouse), or section for a fiscal year for room or board for the highest State courts under this section
‘‘(II) at a healthcare facility operated pri- youth who have attained age 18, are no shall be in addition to any grants made to
marily for the benefit of employees of the longer in foster care or otherwise eligible for such courts under section 438 of such Act for
employer of the individual (or of the individ- services under such section, and experienced any fiscal year.
ual’s spouse). foster care at 14 years of age or older. (B) NO MATCHING REQUIREMENT.—The limi-
‘‘(ii) QUALIFIED ITEMS AND SERVICES DE- (c) SPECIAL RULES.— tation on the use of funds specified in section
FINED.—For purposes of this subparagraph, (1) NONAPPLICATION OF MATCHING FUNDS RE- 438(d) of such Act (42 U.S.C. 629h(d)) shall not
the term ‘qualified items and services’ QUIREMENT FOR INCREASED FUNDING.—With apply to the grants awarded under this sec-
means the following: respect to the amount allotted to a State tion.
‘‘(I) Physical examination. under section 477(c)(1) of the Social Security (C) NO ADDITIONAL APPLICATION.—The Sec-
‘‘(II) Immunizations, including injections Act (42 U.S.C. 677(c)(1)) for fiscal year 2020, retary shall award grants to the highest
of antigens provided by employees. the Secretary shall apply section State courts under this section without re-
‘‘(III) Drugs or biologicals other than a 474(a)(4)(A)(i) of such Act (42 U.S.C. quiring such courts to submit an additional
prescribed drug (as such term is defined in 674(a)(4)(A)(i)) to the additional amount of application.
section 213(d)(3)). such allotment resulting from the deemed (D) REPORTS.—The Secretary may estab-
‘‘(IV) Treatment for injuries occurring in increase in the dollar amount specified in lish reporting criteria specific to the grants
the course of employment. section 477(h)(1) of such Act (42 U.S.C. awarded under this section.
‘‘(V) Preventive care for chronic conditions 677(h)(1)) for fiscal year 2020 under subsection (E) REDISTRIBUTION OF FUNDS.—If a highest
(as defined in clause (iv)). (a) by substituting ‘‘100 percent’’ for ‘‘80 per- State court does not accept a grant awarded
‘‘(VI) Management of chronic conditions or cent’’. under this section, or does not agree to com-
diseases. (2) NO RESERVATION FOR EVALUATION, TECH- ply with any reporting requirements imposed
‘‘(VII) Drug testing. NICAL ASSISTANCE, PERFORMANCE MEASURE- under subparagraph (D) or the use of funds
‘‘(VIII) Hearing or vision screenings and re- MENT, AND DATA COLLECTION ACTIVITIES.—Sec- requirements specified in subsection (c), the
lated services. tion 477(g)(2) of such Act (42 U.S.C. 677(g)(2)) Secretary shall redistribute the grant funds
‘‘(IX) Testing, vaccines, or treatments for shall not apply to the portion of the deemed that would have been awarded to that court
the virus SARS–CoV–2 or coronavirus disease dollar amount for section 477(h)(1) of such among the other highest State courts that
2019 (COVID–19). Act (42 U.S.C. 677(h)(1)) for fiscal year 2020 are awarded grants under this section and
‘‘(iii) AGGREGATION.—For purposes of under subsection (a) that exceeds the dollar agree to comply with such reporting and use
clause (i), all persons treated as a single em- amount specified in that section for such fis- of funds requirements.
ployer under subsection (b), (c), (m), or (o) of cal year. (c) USE OF FUNDS.—A highest State court
section 414 shall be treated as a single em- (d) DEFINITIONS.—In this section: awarded a grant under this section shall use
ployer. (1) COVID–19 PUBLIC HEALTH EMERGENCY.— the grant funds to address needs stemming
‘‘(iv) PREVENTIVE CARE FOR CHRONIC CONDI- The term ‘‘COVID–19 public health emer- from the COVID–19 public health emergency,
TIONS.—For purposes of this subparagraph, gency’’ means the public health emergency which may include any of the following:
the term ‘preventive care for chronic condi- declared by the Secretary pursuant to sec- (1) Technology investments to facilitate
tions’ means any item or service specified in tion 319 of the Public Health Service Act on the transition to remote hearings for depend-
the Appendix of Internal Revenue Service January 31, 2020, entitled ‘‘Determination ency courts when necessary as a direct result
Notice 2019-45 which is prescribed to treat an that a Public Health Emergency Exists Na- of the COVID–19 public health emergency.
individual diagnosed with the associated tionwide as the Result of the 2019 Novel (2) Training for judges, attorneys, and
chronic condition specified in such Appendix Coronavirus’’ and includes any renewal of caseworkers on facilitating and partici-
for the purpose of preventing the exacer- such declaration pursuant to such section pating in remote technology hearings that
bation of such chronic condition or the de- 319. still comply with due process, meet Congres-
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velopment of a secondary condition, includ- (2) SECRETARY.—The term ‘‘Secretary’’ sionally mandated requirements, ensure
ing any amendment, addition, removal, or means the Secretary of Health and Human child safety and well-being, and help inform
other modification made by the Secretary Services. judicial decision-making.
(pursuant to the authority granted to the SEC. 208. COURT IMPROVEMENT PROGRAM. (3) Programs to help families address as-
Secretary under paragraph (2)(C)) to the (a) TEMPORARY FUNDING INCREASES.—Out pects of the case plan to avoid delays in legal
items or services specified in such Appendix of any money in the Treasury of the United proceedings that would occur as a direct re-
subsequent to the date of enactment of this States not otherwise appropriated, there are sult of the COVID–19 public health emer-
subparagraph. appropriated to the Secretary, $10,000,000 for gency.
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S4768 CONGRESSIONAL RECORD — SENATE August 4, 2020
(4) Other purposes to assist courts, court (A) the individual’s designation to serve on (3) COORDINATION WITH OTHER FEDERAL EN-
personnel, or related staff related to the 1 or more teams under an emergency procla- TITIES.—The Secretary shall seek input as
COVID–19 public health emergency. mation by the Secretary; appropriate on the training courses devel-
(d) DEFINITIONS.—In this section: (B) the mission of the team; oped under this subsection from the Elder
(1) COVID–19 PUBLIC HEALTH EMERGENCY.— (C) the authority of the individual to per- Justice Coordinating Council and the Direc-
The term ‘‘COVID–19 public health emer- form the team mission; tor of the Centers for Disease Control and
gency’’ means the public health emergency (D) the individual’s authority to access Prevention.
declared by the Secretary pursuant to sec- places, persons, and materials necessary for (4) INTERACTIVE WEBSITE.—The Secretary is
tion 319 of the Public Health Service Act on the team member’s performance of the authorized to create an interactive website
January 31, 2020, entitled ‘‘Determination team’s mission; to disseminate training materials and re-
that a Public Health Emergency Exists Na- (E) the requirement that team members lated information in the areas of infection
tionwide as the Result of the 2019 Novel maintain the confidentiality of patient in- control and prevention, for purposes of car-
Coronavirus’’ and includes any renewal of formation shared with such individuals by a rying out this subsection during the COVID–
such declaration pursuant to such section participating provider; and 19 public health emergency period.
319. (F) the required security background SEC. 214. PROMOTING TRANSPARENCY IN COVID–
(2) SECRETARY.—The term ‘‘Secretary’’ checks that the individual has passed. 19 REPORTING BY NURSING FACILI-
means the Secretary of Health and Human (3) SECRETARIAL OVERSIGHT.—The Sec- TIES.
Services. retary may, at any time, disband any strike Not later than 10 days after the date of en-
Subtitle B—Emergency Support and COVID– team and rescind the letter of authorization actment of this Act, and at least weekly
19 Protection for Nursing Homes for any team member. thereafter during the COVID-19 public health
SEC. 211. DEFINITIONS. (4) TEAM AND MEMBER AUTHORITY.—A team emergency period, the Secretary shall pro-
and team member may not use the letter of vide the Governor of each State with a list of
In this subtitle:
authorization described in paragraph (2) for all participating providers in the State with
(1) COVID–19.—The term ‘‘COVID–19’’
any purpose except in connection with the respect to which the reported cases of
means the 2019 Novel Coronavirus or 2019-
team’s mission of acting in good faith to pro- COVID–19 in visitors to, personnel of, and
nCoV.
mote resident and employee safety in par- residents of, such providers increased during
(2) COVID–19 PUBLIC HEALTH EMERGENCY PE-
ticipating providers in which COVID–19 is the previous week (or, in the case of the first
RIOD.—The term ‘‘COVID–19 public health
confirmed to be present. such list, during the 10-day period beginning
emergency period’’ means the period begin-
(5) ADMINISTRATION.—The Secretary, in on the date of enactment of this Act).
ning on the first day of the emergency period
defined in paragraph (1)(B) of section 1135(g) consultation with the Director of the Cen- SEC. 215. FUNDING.
of the Social Security Act (42 U.S.C. 1320b- ters for Disease Control and Prevention, may The Secretary may use amounts appro-
5(g)) and ending on the last day of the cal- establish protocols and procedures for re- priated for COVID–19 response and related
endar quarter in which the last day of such questing the assistance of a strike team es- activities pursuant to the CARES Act (Pub-
emergency period occurs. tablished under this section and any other lic Law 116–136) and subsequently enacted
(3) NURSING FACILITY.—The term ‘‘nursing procedures deemed necessary for the team’s legislation to carry out this subtitle.
facility’’ has the meaning given that term in operation.
section 1919(a) of the Social Security Act (42 (6) SUPPLEMENTATION OF OTHER RESPONSE SA 2512. Mr. MORAN (for himself and
U.S.C. 1396r(a)). EFFORTS.—Strike teams established by the Mr. BLUMENTHAL) proposed an amend-
(4) PARTICIPATING PROVIDER.—The term Secretary under this section shall supple- ment to the bill S. 2330, to amend the
‘‘participating provider’’ means a skilled ment and not supplant response efforts car- Ted Stevens Olympic and Amateur
nursing facility or a nursing facility that has ried out by a State strike team or a tech- Sports Act to provide for congressional
been assigned a national provider identifier nical assistance team established by the Sec-
retary during the COVID-19 public health
oversight of the board of directors of
number by the Secretary and has executed the United States Olympic and
an agreement to participate in the Medicare emergency period
SEC. 213. PROMOTING COVID–19 TESTING AND IN-
Paralympic Committee and to protect
program established under title XVIII of the
Social Security Act (42 U.S.C. 1395 et seq.) or FECTION CONTROL IN NURSING FA- amateur athletes from emotional,
the Medicaid program established under title CILITIES. physical, and sexual abuse, and for
XIX of such Act (42 U.S.C. 1396 et seq.). (a) NURSING HOME PROTECTIONS.—The Sec- other purposes; as follows:
(5) SECRETARY.—The term ‘‘Secretary’’ retary, in consultation with the Elder Jus- Strike all after the enacting clause and in-
means the Secretary of Health and Human tice Coordinating Council, is authorized dur- sert the following:
Services. ing the COVID–19 public health emergency SECTION 1. SHORT TITLE.
(6) SKILLED NURSING FACILITY.—The term period to enhance efforts by participating This Act may be cited as the ‘‘Empowering
‘‘skilled nursing facility’’ has the meaning providers to respond to COVID–19, including Olympic, Paralympic, and Amateur Athletes
given that term in section 1819(a) of the So- through— Act of 2020’’.
cial Security Act (42 U.S.C. 1395i–3(a)). (1) development of online training courses SEC. 2. FINDINGS.
(7) STATE.—Except as otherwise provided, for personnel of participating providers, sur-
Congress makes the following findings:
the term ‘‘State’’ has the meaning given vey agencies, the long-term care ombudsman
such term for purposes of title XIX of the So- of each State, and other individuals to facili-
SA 2513. Mr. CASSIDY (for himself,
cial Security Act (42 U.S.C. 1396 et seq.). tate the implementation of subsection (b);
(2) enhanced diagnostic testing of visitors Mr. DAINES, Mr. ROMNEY, and Mr.
SEC. 212.ESTABLISHING COVID–19 STRIKE
TEAMS FOR NURSING FACILITIES. to, personnel of, and residents of, partici- RUBIO) submitted an amendment in-
(a) IN GENERAL.—The Secretary is author- pating providers in which measures of tended to be proposed to amendment
ized to establish and support the operation of COVID–19 in the community support more SA 2499 proposed by Mr. MCCONNELL to
strike teams comprised of individuals with frequent testing for COVID–19; the bill S. 178, to condemn gross human
relevant skills, qualifications, and experi- (3) development of training materials for rights violations of ethnic Turkic Mus-
ence to respond to COVID–19-related crises in personnel of participating providers, the lims in Xinjiang, and calling for an end
participating providers during the COVID–19 long-term care ombudsman of each State,
to arbitrary detention, torture, and
public health emergency period, based on and other individuals to facilitate the imple-
mentation of subsection (c); and harassment of these communities in-
data reported by such providers to the Cen-
ters for Disease Control and Prevention. (4) providing support to participating pro- side and outside China; which was or-
(b) MISSION AND COMPOSITION OF STRIKE viders in areas deemed by the Secretary to dered to lie on the table; as follows:
TEAMS.— require additional assistance due to the pres- At the appropriate place, insert the fol-
(1) IN GENERAL.—Strike teams established ence COVID–19 infections. lowing:
by the Secretary may include assessment, (b) TRAINING ON BEST PRACTICES IN INFEC- SEC. lll. SUPPLEMENTARY 2020 RECOVERY RE-
testing, and clinical teams, and a mission for TION CONTROL AND PREVENTION.— BATES FOR INDIVIDUALS.
each such team may include performing (1) IN GENERAL.—The Secretary shall de- (a) IN GENERAL.—Subchapter B of chapter
medical examinations, conducting COVID–19 velop training courses on infection control 65 of subtitle F of the Internal Revenue Code
testing, and assisting participating providers and prevention, including cohorting, strate- of 1986 is amended by inserting after section
with the implementation of infection control gies and use of telehealth to mitigate the 6428 the following new section:
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practices (such as quarantine, isolation, or transmission of COVID–19 in participating ‘‘SEC. 6428A. SUPPLEMENTARY 2020 RECOVERY
disinfection procedures). providers during the COVID–19 public health REBATES FOR INDIVIDUALS.
(2) LETTER OF AUTHORIZATION.—Strike emergency period. ‘‘(a) IN GENERAL.—In addition to the credit
teams and members of such teams shall be (2) DEVELOPMENT.—To the extent prac- allowed under section 6428, in the case of an
subject to the Secretary’s oversight and di- ticable, the training programs developed by eligible individual, there shall be allowed as
rection and the Secretary may issue a letter the Secretary under this subsection shall use a credit against the tax imposed by subtitle
of authorization to team members describ- best practices in infection control and pre- A for the first taxable year beginning in 2020
ing— vention. an amount equal to the sum of—
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4769
‘‘(1) $1,000 ($2,000 in the case of eligible in- tion received from an officer or employee de- States at any time during the taxable year
dividuals filing a joint return), plus scribed in section 3325(a)(1)(B) of such title and the valid identification number of at
‘‘(2) an amount equal to the product of for the purpose of facilitating the accurate least 1 spouse is included on the return of
$1,000 multiplied by the number of depend- and efficient delivery of such payment. Ex- tax for the taxable year.
ents (as defined in section 152(a)) of the tax- cept in cases of fraud or reckless neglect, no ‘‘(6) MATHEMATICAL OR CLERICAL ERROR AU-
payer. liability under sections 3325, 3527, 3528, or THORITY.—Any omission of a correct valid
‘‘(b) TREATMENT OF CREDIT.—The credit al- 3529 of title 31, United States Code, shall be identification number required under this
lowed by subsection (a) shall be treated as imposed with respect to payments made subsection shall be treated as a mathe-
allowed by subpart C of part IV of sub- under this subparagraph. matical or clerical error for purposes of ap-
chapter A of chapter 1. ‘‘(4) NO INTEREST.—No interest shall be al- plying section 6213(g)(2) to such omission.
‘‘(c) LIMITATION BASED ON ADJUSTED GROSS lowed on any overpayment attributable to ‘‘(h) REGULATIONS.—The Secretary shall
INCOME.—The amount of the credit allowed this section. prescribe such regulations or other guidance
by subsection (a) (determined without regard ‘‘(5) ALTERNATE TAXABLE YEAR.—In the as may be necessary to carry out the pur-
to this subsection and subsection (e)) shall case of an individual who, at the time of any poses of this section, including any such
be reduced (but not below zero) by 5 percent determination made pursuant to paragraph measures as are deemed appropriate to avoid
of so much of the taxpayer’s adjusted gross (3), has not filed a tax return for the year de- allowing multiple credits or rebates to a tax-
income as exceeds— scribed in paragraph (1), the Secretary may— payer.’’.
‘‘(1) $150,000 in the case of a joint return, ‘‘(A) apply such paragraph by substituting (b) DEFINITION OF DEFICIENCY.—Section
‘‘(2) $112,500 in the case of a head of house- ‘2018’ for ‘2019’, and 6211(b)(4)(A) of the Internal Revenue Code of
hold, and ‘‘(B) if the individual has not filed a tax re- 1986 is amended by striking ‘‘and 6428’’ and
‘‘(3) $75,000 in the case of a taxpayer not de- turn for such individual’s first taxable year inserting ‘‘6428, and 6428A’’.
scribed in paragraph (1) or (2). beginning in 2018, use information with re- (c) TREATMENT OF POSSESSIONS.—Rules
‘‘(d) ELIGIBLE INDIVIDUAL.—For purposes of spect to such individual for calendar year similar to the rules of subsection (c) of sec-
this section, the term ‘eligible individual’ 2019 provided in— tion 2201 of the CARES Act (Public Law 116-
means any individual other than— ‘‘(i) Form SSA–1099, Social Security Ben- 136) shall apply for purposes of this section.
‘‘(1) any nonresident alien individual, efit Statement, or (d) EXCEPTION FROM REDUCTION OR OFF-
‘‘(2) any individual with respect to whom a ‘‘(ii) Form RRB–1099, Social Security SET.—Any credit or refund allowed or made
deduction under section 151 is allowable to Equivalent Benefit Statement. to any individual by reason of section 6428A
another taxpayer for a taxable year begin- ‘‘(6) NOTICE TO TAXPAYER.—Not later than of the Internal Revenue Code of 1986 (as
ning in the calendar year in which the indi- 15 days after the date on which the Secretary added by this section) or by reason of sub-
vidual’s taxable year begins, and distributed any payment to an eligible tax- section (c) of this section shall not be—
‘‘(3) an estate or trust. payer pursuant to this subsection, notice (1) subject to reduction or offset pursuant
‘‘(e) COORDINATION WITH ADVANCE REFUNDS shall be sent by mail to such taxpayer’s last to section 3716 or 3720A of title 31, United
OF CREDIT.— known address. Such notice shall indicate States Code,
‘‘(1) IN GENERAL.—The amount of credit the method by which such payment was (2) subject to reduction or offset pursuant
which would (but for this paragraph) be al- made, the amount of such payment, and a to subsection (d), (e), or (f) of section 6402 of
lowable under this section shall be reduced phone number for the appropriate point of the Internal Revenue Code of 1986, or
(but not below zero) by the aggregate refunds contact at the Internal Revenue Service to (3) reduced or offset by other assessed Fed-
and credits made or allowed to the taxpayer report any failure to receive such payment. eral taxes that would otherwise be subject to
under subsection (f). Any failure to so reduce ‘‘(g) IDENTIFICATION NUMBER REQUIRE- levy or collection.
the credit shall be treated as arising out of MENT.—
(e) PUBLIC AWARENESS CAMPAIGN.—The
a mathematical or clerical error and as- ‘‘(1) IN GENERAL.—In the case of any tax- Secretary of the Treasury (or the Secretary’s
sessed according to section 6213(b)(1). payer who does not include the valid identi-
delegate) shall conduct a public awareness
‘‘(2) JOINT RETURNS.—In the case of a re- fication number of such taxpayer on the re-
campaign, in coordination with the Commis-
fund or credit made or allowed under sub- turn of tax for the taxable year, subsection
sioner of Social Security and the heads of
section (f) with respect to a joint return, half (a)(1) shall be applied by substituting ‘$0’ for
other relevant Federal agencies, to provide
of such refund or credit shall be treated as ‘$1,000’.
information regarding the availability of the
having been made or allowed to each indi- ‘‘(2) JOINT RETURNS.—In the case of a joint
credit and rebate allowed under section
vidual filing such return. return—
‘‘(f) ADVANCE REFUNDS AND CREDITS.— 6428A of the Internal Revenue Code of 1986
‘‘(A) if the valid identification number of
‘‘(1) IN GENERAL.—Subject to paragraph (5), (as added by this section), including informa-
only 1 spouse is included on the return of tax
each individual who was an eligible indi- tion with respect to individuals who may not
for the taxable year—
vidual for such individual’s first taxable year ‘‘(i) subsection (a)(1) shall be applied by have filed a tax return for taxable year 2018
beginning in 2019 shall be treated as having substituting ‘$1,000’ for ‘$2,000’, and or 2019.
(f) CONFORMING AMENDMENTS.—
made a payment against the tax imposed by ‘‘(ii) subsection (c)(1) shall be applied by
(1) Paragraph (2) of section 1324(b) of title
chapter 1 for such taxable year in an amount substituting ‘$75,000’ for ‘$150,000’, or
31, United States Code, is amended by insert-
equal to the advance refund amount for such ‘‘(B) if the valid identification number of
ing ‘‘6428A,’’ after ‘‘6428,’’.
taxable year. neither spouse is included on the return of
(2) The table of sections for subchapter B
‘‘(2) ADVANCE REFUND AMOUNT.—For pur- tax for the taxable year, subsection (a)(1)
of chapter 65 of subtitle F of the Internal
poses of paragraph (1), the advance refund shall be applied by substituting ‘$0’ for
Revenue Code of 1986 is amended by inserting
amount is the amount that would have been ‘$2,000’.
after the item relating to section 6428 the
allowed as a credit under this section for ‘‘(3) DEPENDENT.—A dependent of a tax-
following:
such taxable year if this section (other than payer shall not be taken into account under
subsection (e) and this subsection) had ap- subsection (a)(2) unless— ‘‘Sec. 6428A. Supplementary 2020 Recovery
plied to such taxable year. ‘‘(A) the taxpayer includes the valid identi- Rebates for individuals.’’.
‘‘(3) TIMING AND MANNER OF PAYMENTS.— fication number of such taxpayer (or, in the
‘‘(A) TIMING.—The Secretary shall, subject case of a joint return, the valid identifica- SA 2514. Ms. MCSALLY submitted an
to the provisions of this title, refund or cred- tion number of at least 1 spouse) on the re- amendment intended to be proposed to
it any overpayment attributable to this sec- turn of tax for the taxable year, and amendment SA 2499 proposed by Mr.
tion as rapidly as possible. No refund or cred- ‘‘(B) the valid identification number of MCCONNELL to the bill S. 178, to con-
it shall be made or allowed under this sub- such dependent is included on the return of demn gross human rights violations of
section after December 31, 2020. tax for the taxable year. ethnic Turkic Muslims in Xinjiang, and
‘‘(B) DELIVERY OF PAYMENTS.—Notwith- ‘‘(4) VALID IDENTIFICATION NUMBER.—
calling for an end to arbitrary deten-
standing any other provision of law, the Sec- ‘‘(A) IN GENERAL.—For purposes of this sub-
retary may certify and disburse refunds pay- section, the term ‘valid identification num- tion, torture, and harassment of these
able under this subsection electronically to ber’ means a social security number (as such communities inside and outside China;
any account to which the payee authorized, term is defined in section 24(h)(7)). which was ordered to lie on the table;
on or after January 1, 2018, the delivery of a ‘‘(B) ADOPTION TAXPAYER IDENTIFICATION as follows:
refund of taxes under this title or of a Fed- NUMBER.—For purposes of paragraph (3)(B), At the appropriate place, insert the fol-
eral payment (as defined in section 3332 of in the case of a dependent who is adopted or
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lowing:
title 31, United States Code). placed for adoption, the term ‘valid identi- SEC. ll. PROHIBITION ON USE OF COVID–19 RE-
‘‘(C) WAIVER OF CERTAIN RULES.—Notwith- fication number’ shall include the adoption LIEF FUNDS TO PURCHASE GOODS
standing section 3325 of title 31, United taxpayer identification number of such de- OR SERVICES FROM COMMUNIST
States Code, or any other provision of law, pendent. CHINESE MILITARY COMPANIES.
with respect to any payment of a refund ‘‘(5) SPECIAL RULE FOR MEMBERS OF THE (a) IN GENERAL.—None of the funds de-
under this subsection, a disbursing official in ARMED FORCES.—Paragraph (2) shall not scribed in subsection (b) may be obligated or
the executive branch of the United States apply in the case where at least 1 spouse was expended to purchase goods or services from
Government may modify payment informa- a member of the Armed Forces of the United a person on the list required by section
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S4770 CONGRESSIONAL RECORD — SENATE August 4, 2020
1237(b) of the Strom Thurmond National De- of 15 percent of the amount of such premium ferent coverage as described in subparagraph
fense Authorization Act for Fiscal Year 1999 owed by such individual (as determined with- (A) only if—
(Public Law 105–261; 50 U.S.C. 1701 note). out regard to this subsection) or the amount (i) the employer involved has made a deter-
(b) FUNDS DESCRIBED.—Funds described in of the premium that a similarly situated in- mination that such employer will permit
this subsection are— dividual enrolled in the plan who is not an such assistance eligible individual to enroll
(1) funds made available under this Act; assistance eligible individual is (or would be, in different coverage as provided under this
(2) funds made available, and available for if so enrolled) required to pay with respect to paragraph;
obligation as of the date of the enactment of the plan (after any employer contribution). (ii) the premium for such different cov-
this Act, under— (B) CHURCH PLANS.—In the case of any pre- erage does not exceed the premium for cov-
(A) the Coronavirus Preparedness and Re- mium for a period of coverage during the pe- erage in which such individual was enrolled
sponse Supplemental Appropriations Act, riod beginning on the first day of the first at the time such qualifying event occurred
2020 (Public Law 116–123; 134 Stat. 146); month that begins after the date of enact- or immediately before such furlough began;
(B) the Families First Coronavirus Re- ment of this Act and ending on December 31, (iii) the different coverage in which the in-
sponse Act (Public Law 116–127; 134 Stat. 177); 2020, for coverage under a church plan with dividual elects to enroll is coverage that is
(C) the Coronavirus Aid, Relief, and Eco- respect to any assistance eligible individual also offered to the active employees of the
nomic Security Act (Public Law 116–136); or described in subsection (c)(2), such individual employer, who are not in a furlough period,
(D) the Paycheck Protection Program and shall be treated for purposes of the individ- at the time at which such election is made;
Health Care Enhancement Act (Public Law ual’s coverage under such plan as having and
116–139; 134 Stat. 620); or paid the amount of such premium if such in- (iv) the different coverage in which the in-
(3) funds made available under any Act en- dividual pays (and any person other than dividual elects to enroll is not—
acted after the date of the enactment of this such individual’s employer pays on behalf of (I) coverage that provides only dental, vi-
Act to provide additional funding relating to such individual) the greater of 15 percent of sion, counseling, or referral services (or a
the COVID–19 pandemic. the amount of such premium owed by such combination of such services);
(c) APPLICATION TO PRIVATE ENTITIES AND individual (as determined without regard to (II) a qualified small employer health re-
STATE AND LOCAL GOVERNMENTS.— this subsection) or the amount of the pre- imbursement arrangement (as defined in sec-
(1) IN GENERAL.—The prohibition under mium that a similarly situated individual tion 9831(d)(2) of the Internal Revenue Code
subsection (a) includes a prohibition on the enrolled in the plan who is not an assistance of 1986);
obligation or expenditure of funds described eligible individual is (or would be, if so en- (III) a flexible spending arrangement (as
in subsection (b) for the purchase of goods or rolled) required to pay with respect to the defined in section 106(c)(2) of the Internal
services from persons described in subsection plan (after any employer contribution). Revenue Code of 1986); or
(a) by a private entity or a State or local (C) FURLOUGHED CONTINUATION COVERAGE.— (IV) benefits that provide coverage for
government that received such funds In the case of any premium for a period of services or treatments furnished in an on-
through a grant or any other means. coverage during the period beginning on the site medical facility maintained by the em-
(2) CERTIFICATION REQUIRED TO RECEIVE FU- first day of the first month that begins after ployer and that consists primarily of first-
TURE FUNDS.—On and after the date of the
the date of enactment of this Act and ending aid services, prevention and wellness care, or
enactment of this Act, the head of an execu- on December 31, 2020, for coverage under a similar care (or a combination of such care).
tive agency may not provide funds described group health plan with respect to any assist- (3) PREMIUM REIMBURSEMENT.—For provi-
in subsection (b) to a private entity or a ance eligible individual described in sub- sions providing the payment of such pre-
State or local government unless the entity section (c)(3), such individual shall be treat- mium, see section 6432 of the Internal Rev-
ed for purposes of the individual’s coverage enue Code of 1986, as added by section 203(a).
or government certifies that the entity or
under such plan as having paid the amount (b) LIMITATION OF PERIOD OF PREMIUM AS-
government, as the case may be, is not pur- SISTANCE.—
of such premium if such individual pays (and
chasing goods or services from a person de- (1) ELIGIBILITY FOR ADDITIONAL COVERAGE.—
any person other than such individual’s em-
scribed in subsection (a). Subsection (a)(1) shall not apply with respect
ployer pays on behalf of such individual) the
(d) EXECUTIVE AGENCY DEFINED.—In this to—
greater of 15 percent of the amount of such
section, the term ‘‘executive agency’’ has the (A) any assistance eligible individual de-
premium owed by such individual (as deter-
meaning given that term in section 133 of scribed in subsection (c)(1) for months of
mined without regard to this subsection) or
title 41, United States Code. coverage beginning on or after the earlier
the amount of the premium that a similarly
situated individual enrolled in the plan who of—
SA 2515. Ms. MCSALLY (for herself, is not an assistance eligible individual is (or (i) the first date that such individual is eli-
Mr. DAINES, Mr. CORNYN, and Mr. SUL- would be, if so enrolled) required to pay with gible for coverage under any other group
LIVAN) submitted an amendment in- respect to the plan (after any employer con- health plan (other than coverage consisting
tended to be proposed to amendment tribution). of only dental, vision, counseling, or referral
SA 2499 proposed by Mr. MCCONNELL to (2) PLAN ENROLLMENT OPTION.— services (or a combination thereof), coverage
the bill S. 178, to condemn gross human (A) IN GENERAL.—Any assistance eligible under a flexible spending arrangement (as
individual who is enrolled in a group health defined in section 106(c)(2) of the Internal
rights violations of ethnic Turkic Mus-
plan offered by a plan sponsor may, not later Revenue Code of 1986), coverage of treatment
lims in Xinjiang, and calling for an end than 90 days after the date of notice of the that is furnished in an on-site medical facil-
to arbitrary detention, torture, and plan enrollment option described in this ity maintained by the employer and that
harassment of these communities in- paragraph, elect to enroll in coverage under consists primarily of first-aid services, pre-
side and outside China; which was or- a plan offered by such plan sponsor that is vention and wellness care, or similar care (or
dered to lie on the table; as follows: different than coverage under the plan in a combination thereof)), or eligible for bene-
At the appropriate place, insert the fol- which such individual was enrolled at the fits under the Medicare program under title
lowing: time— XVIII of the Social Security Act; or
(i) in the case of any assistance eligible in- (ii) the earlier of—
Subtitle ll—Continuous Health Coverage
dividual described in subsection (c)(1), the (I) the date following the expiration of the
for Workers
qualifying event specified in section 603(2) of maximum period of continuation coverage
SEC. 201. SHORT TITLE. the Employee Retirement Income Security required under the applicable COBRA con-
This subtitle may be cited as the ‘‘Contin- Act of 1974, section 4980B(f)(3)(B) of the Inter- tinuation coverage provision; or
uous Health Coverage for Workers Act’’. nal Revenue Code of 1986, section 2203(2) of (II) the date following the expiration of the
SEC. 202. PRESERVING HEALTH BENEFITS FOR the Public Health Service Act, or section period of continuation coverage allowed
WORKERS. 8905a of title 5, United States Code (except under subsection (d)(2)(B);
(a) PROVISION OF PREMIUM ASSISTANCE.— for the voluntary termination of such indi- (B) any assistance eligible individual de-
(1) REDUCTION OF PREMIUMS PAYABLE.— vidual’s employment by such individual), oc- scribed in subsection (c)(2) for months of
(A) COBRA CONTINUATION COVERAGE.—In curred, and such coverage shall be treated as coverage beginning on or after the earlier
the case of any premium for a period of cov- COBRA continuation coverage for purposes of—
erage during the period beginning on the of the applicable COBRA continuation provi- (i) the first date that such individual is eli-
first day of the first month that begins after sion; gible for coverage under any other group
the date of enactment of this Act and ending (ii) in the case of an assistance eligible in- health plan (other than coverage consisting
on December 31, 2020, for COBRA continu- dividual described in subsection (c)(2), the of only dental, vision, counseling, or referral
SSpencer on DSK126QN23PROD with SENATE
ation coverage with respect to any assist- termination or reduction of hours of employ- services (or a combination thereof), coverage
ance eligible individual described in sub- ment of such individual occurred; or under a flexible spending arrangement (as
section (c)(1), such individual shall be treat- (iii) in the case of any assistance eligible defined in section 106(c)(2) of the Internal
ed for purposes of any COBRA continuation individual described in subsection (c)(3), the Revenue Code of 1986), coverage of treatment
provision as having paid the amount of such furlough period began with respect to such that is furnished in an on-site medical facil-
premium if such individual pays (and any individual. ity maintained by the employer and that
person other than such individual’s employer (B) REQUIREMENTS.—Any assistance eligi- consists primarily of first-aid services, pre-
pays on behalf of such individual) the greater ble individual may elect to enroll in dif- vention and wellness care, or similar care (or
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4771
a combination thereof)), or eligible for bene- (1) IN GENERAL.—For purposes of applying premium assistance with respect to an as-
fits under the Medicare program under title section 605(a) of the Employee Retirement sistance eligible individual under this sec-
XVIII of the Social Security Act; or Income Security Act of 1974, section tion shall not be considered income, in-kind
(ii) the first date on which the church plan 4980B(f)(5)(A) of the Internal Revenue Code of support, or resources for purposes of deter-
is no longer available to such individual; or 1986, section 2205(a) of the Public Health mining the eligibility of the recipient (or the
(C) any assistance eligible individual de- Service Act, and section 8905a(c)(2) of title 5, recipient’s spouse or family) for benefits or
scribed in paragraph (3)(C) for months of cov- United States Code, in the case of— assistance, or the amount or extent of bene-
erage beginning on or after the earlier of— (A) an individual who does not have an fits or assistance, or any other benefit pro-
(i) the first date that such individual is eli- election of COBRA continuation coverage in vided under any Federal program or any pro-
gible for coverage under any other group effect on the date of the enactment of this gram of a State or political subdivision
health plan (other than coverage consisting Act but who would be an assistance eligible thereof financed in whole or in part with
of only dental, vision, counseling, or referral individual described in subsection (c)(1) if Federal funds.
services (or a combination thereof), coverage such election were so in effect; or (g) COBRA-SPECIFIC NOTICE.—
under a flexible spending arrangement (as (B) an individual who elected COBRA con- (1) GENERAL NOTICE.—
defined in section 106(c)(2) of the Internal tinuation coverage on or after March 1, 2020, (A) IN GENERAL.—In the case of notices pro-
Revenue Code of 1986), coverage of treatment and discontinued from such coverage before vided under section 606(a)(4) of the Employee
that is furnished in an on-site medical facil- the date of the enactment of this Act, Retirement Income Security Act of 1974 (29
ity maintained by the employer and that U.S.C. 1166(4)), section 4980B(f)(6)(D) of the
such individual may elect the COBRA con-
consists primarily of first-aid services, pre- Internal Revenue Code of 1986, section 2206(4)
tinuation coverage under the COBRA con-
vention and wellness care, or similar care (or of the Public Health Service Act (42 U.S.C.
tinuation coverage provisions containing
a combination thereof)), or eligible for bene- 300bb–6(4)), or section 8905a(f)(2)(A) of title 5,
such provisions during the period beginning
fits under the Medicare program under title United States Code, with respect to individ-
on the date of the enactment of this Act and
XVIII of the Social Security Act; or uals who, during the period described in sub-
ending 60 days after the date on which the
(ii) the first date that such individual is no section (c), become entitled to elect COBRA
notification required under subsection (g)(3)
longer in the furlough period. continuation coverage, the requirements of
is provided to such individual.
(2) NOTIFICATION REQUIREMENT.—Any as- such provisions shall not be treated as met
(2) COMMENCEMENT OF COBRA CONTINUATION
sistance eligible individual shall notify the unless such notices include an additional no-
COVERAGE.—Any COBRA continuation cov-
group health plan with respect to which sub- tification to the recipient, in writing, in
erage elected by a qualified beneficiary dur- clear and understandable language of—
section (a)(1) applies if such paragraph ing an extended election period under para-
ceases to apply by reason of subparagraph (i) the availability of premium assistance
graph (1)— with respect to such coverage under this sec-
(A)(i), (B)(i), or (C)(i) of paragraph (1) (as ap- (A) shall apply as if such qualified bene-
plicable). Such notice shall be provided to tion; and
ficiary had been covered as of the date of a (ii) the option to enroll in different cov-
the group health plan in such time and man- qualifying event specified in section 603(2) of
ner as may be specified by the Secretary of erage if the employer permits assistance eli-
the Employee Retirement Income Security gible individuals described in subsection
Labor. Act of 1974, section 4980B(f)(3)(B) of the Inter-
(3) SPECIAL ENROLLMENT PERIOD FOLLOWING (c)(1) to elect enrollment in different cov-
nal Revenue Code of 1986, section 2203(2) of erage (as described in subsection (a)(2)).
EXPIRATION OF PREMIUM ASSISTANCE.—Not-
the Public Health Service Act, or section (B) ALTERNATIVE NOTICE.—In the case of
withstanding section 1311 of the Patient Pro- 8905a of title 5, United States Code, except
tection and Affordable Care Act (42 U.S.C. COBRA continuation coverage to which the
for the voluntary termination of such bene- notice provision under such sections does not
18031), the expiration of premium assistance ficiary’s employment by such beneficiary,
pursuant to a limitation specified under apply, the Secretary of Labor, in consulta-
that occurs no earlier than March 1, 2020 (in- tion with the Secretary of the Treasury and
paragraph (1) shall be treated as a qualifying cluding the treatment of premium payments
event for which any assistance eligible indi- the Secretary of Health and Human Services,
under subsection (a)(1) and any cost-sharing shall, in consultation with administrators of
vidual is eligible to enroll in a qualified requirements for items and services under a
health plan offered through an Exchange the group health plans (or other entities)
group health plan); and that provide or administer the COBRA con-
under title I of such Act (42 U.S.C. 18001 et (B) shall not extend beyond the period of
seq.) during a special enrollment period. tinuation coverage involved, provide rules
COBRA continuation coverage that would requiring the provision of such notice.
(c) ASSISTANCE ELIGIBLE INDIVIDUAL.—For
have been required under the applicable (C) FORM.—The requirement of the addi-
purposes of this section, the term ‘‘assist-
COBRA continuation coverage provision if tional notification under this paragraph may
ance eligible individual’’ means, with respect
the coverage had been elected as required be met by amendment of existing notice
to a period of coverage during the period be-
ginning on the first day of the first month under such provision. forms or by inclusion of a separate document
(e) EXPEDITED REVIEW OF DENIALS OF PRE- with the notice otherwise required.
that begins after the date of enactment of
MIUM ASSISTANCE.—In any case in which an
this Act and ending on December 31, 2020— (2) SPECIFIC REQUIREMENTS.—Each addi-
individual requests treatment as an assist- tional notification under paragraph (1) shall
(1) any individual that is a qualified bene-
ance eligible individual described in para- include—
ficiary that— graph (1), (2), or (3) of subsection (c) and is
(A) is eligible for COBRA continuation cov- (A) the forms necessary for establishing
denied such treatment by the group health
erage by reason of a qualifying event speci- eligibility for premium assistance under this
plan, the Secretary of Labor (or the Sec-
fied in section 603(2) of the Employee Retire- section;
retary of Health and Human Services in con-
ment Income Security Act of 1974, section (B) the name, address, and telephone num-
nection with COBRA continuation coverage
4980B(f)(3)(B) of the Internal Revenue Code of or a church plan which is provided other ber necessary to contact the plan adminis-
1986, section 2203(2) of the Public Health than pursuant to part 6 of subtitle B of title trator and any other person maintaining rel-
Service Act, or section 8905a of title 5, I of the Employee Retirement Income Secu- evant information in connection with such
United States Code (except for the voluntary rity Act of 1974), in consultation with the premium assistance;
termination of such individual’s employment Secretary of the Treasury, shall provide for (C) a description of the extended election
by such individual); and expedited review of such denial. An indi- period provided for in subsection (d)(1);
(B) elects such coverage; vidual shall be entitled to such review upon (D) a description of the obligation of the
(2) any individual who— application to such Secretary in such form qualified beneficiary under subsection (b)(2)
(A) is terminated from (other than by rea- and manner as shall be provided by such Sec- and the penalty provided under section 6720C
son of such employee’s gross misconduct or retary, in consultation with the Secretary of of the Internal Revenue Code of 1986 for fail-
voluntary termination), or is subject to a re- Treasury. Such Secretary shall make a de- ure to carry out the obligation;
duction in hours with respect to, employ- termination regarding such individual’s eli- (E) a description, displayed in a prominent
ment with an employer who offers a church gibility within 15 business days after receipt manner, of the qualified beneficiary’s right
plan, if the employer voluntarily offers cov- of such individual’s application for review to a reduced premium and any conditions on
erage under such plan to such individual under this subsection. Either Secretary’s de- entitlement to the reduced premium;
after the termination or reduction of hours, termination upon review of the denial shall (F) a description of the option of the quali-
or is a beneficiary of such an individual who be de novo and shall be the final determina- fied beneficiary to enroll in different cov-
is terminated or subject to a reduction of tion of such Secretary. A reviewing court erage if the employer permits such bene-
hours, if the employer voluntarily offers cov- shall grant deference to such Secretary’s de- ficiary to elect to enroll in such different
coverage under subsection (a)(2); and
SSpencer on DSK126QN23PROD with SENATE
erage under such plan to such beneficiary; termination. The provisions of this sub-
and section, subsections (a) through (e), and sub- (G) information regarding any Exchange
(B) elects such coverage; or sections (g) through (i) shall be treated as established under title I of the Patient Pro-
(3) any covered employee that is in a fur- provisions of title I of the Employee Retire- tection and Affordable Care Act (42 U.S.C.
lough period that remains eligible for cov- ment Income Security Act of 1974 for pur- 18001 et seq.) through which a qualified bene-
erage under a group health plan offered by poses of part 5 of subtitle B of such title. ficiary may be eligible to enroll in a quali-
the employer of such covered employee. (f) DISREGARD OF SUBSIDIES FOR PURPOSES fied health plan, including—
(d) EXTENSION OF ELECTION PERIOD AND EF- OF FEDERAL AND STATE PROGRAMS.—Not- (i) the publicly accessible internet website
FECT ON COVERAGE.— withstanding any other provision of law, any address for such Exchange;
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S4772 CONGRESSIONAL RECORD — SENATE August 4, 2020
(ii) the publicly accessible internet website (B) in the case of any additional notifica- (i) COBRA continuation coverage; or
address for the Find Local Help directory tion provided pursuant to paragraph (1) (ii) coverage under a group health plan;
maintained by the Department of Health and under section 8905a(f)(2)(A) of title 5, United (C) that the expiration of premium assist-
Human Services on the healthcare.gov inter- States Code, the Office of Personnel Manage- ance is treated as a qualifying event for
net website (or a successor website); ment shall prescribe a model for such addi- which any assistance eligible individual is
(iii) a clear explanation that— tional notification. eligible to enroll in a qualified health plan
(I) an individual who is eligible for con- (h) FURLOUGH-SPECIFIC NOTICE.— offered through an Exchange under title I of
tinuation coverage may also be eligible to (1) IN GENERAL.—With respect to any as- such Act (42 U.S.C. 18001 et seq.) during a
enroll, with financial assistance, in a quali- sistance eligible individual described in sub- special enrollment period; and
fied health plan offered through such Ex- section (c)(3) who, during the period de- (D) the information specified in subsection
change, but, in the case that such individual scribed in such paragraph, becomes eligible (g)(2)(G).
elects to enroll in such continuation cov- for assistance pursuant to subsection (2) EXCEPTION.—The requirement for the
erage and subsequently elects to terminate (a)(1)(C), the requirements of section 606(a)(4) group health plan administrator to provide
such continuation coverage before the period of the Employee Retirement Income Secu- the written notice under paragraph (1) shall
of such continuation coverage expires, such rity Act of 1974 (29 U.S.C. 1166(4)), section be waived in the case the premium assist-
4980B(f)(6)(D) of the Internal Revenue Code of
termination does not initiate a special en- ance for such individual expires pursuant to
1986, section 2206(4) of the Public Health
rollment period (absent a qualifying event subparagraph (A)(i) or (C)(i) of subsection
Service Act (42 U.S.C. 300bb–6(4)), or section
specified in section 603(2) of the Employee (b)(1).
8905a(f)(2)(A) of title 5, United States Code,
Retirement Income Security Act of 1974, sec- (3) PERIOD SPECIFIED.—For purposes of
shall not be treated as met unless the group
tion 4980B(f)(3)(B) of the Internal Revenue health plan administrator, in accordance paragraph (1), the period specified in this
Code of 1986, section 2203(2) of the Public with the timing requirement specified under paragraph is, with respect to the date of ex-
Health Service Act, or section 8905a of title paragraph (2), provides to the individual a piration of premium assistance for any as-
5, United States Code, with respect to such written notice in clear and understandable sistance eligible individual pursuant to a
individual); and language of— limitation requiring a notice under this sub-
(II) an individual who elects to enroll in (A) the availability of premium assistance section, the period beginning on the day that
continuation coverage will remain eligible to with respect to such coverage under this sec- is 45 days before the date of such expiration
enroll in a qualified health plan offered tion; and ending on the day that is 15 days before
through such Exchange during an open en- (B) the option of the qualified beneficiary the date of such expiration.
rollment period and may be eligible for fi- to enroll in different coverage if the em- (4) MODEL NOTICES.—Not later than 30 days
nancial assistance with respect to enrolling ployer permits such beneficiary to elect to after the date of enactment of this Act, with
in such a qualified health plan; enroll in such different coverage under sub- respect to any assistance eligible indi-
(iv) information on consumer protections section (a)(2); and vidual—
with respect to enrolling in a qualified (C) the information specified under sub- (A) the Secretary of Labor, in consultation
health plan offered through such Exchange, section (g)(2) (as applicable). with the Secretary of the Treasury and the
including the requirement for such a quali- (2) TIMING SPECIFIED.—For purposes of Secretary of Health and Human Services,
fied health plan to provide coverage for es- paragraph (1), the timing requirement speci- shall prescribe models for the notification
sential health benefits (as defined in section fied in this paragraph is— required under this subsection (other than
1302(b) of such Act (42 U.S.C. 18022(b))) and (A) with respect to such an individual who the notification described in subparagraph
the requirements applicable to such a quali- is within a furlough period during the period (B)); and
fied health plan under part A of title XXVII beginning on March 1, 2020, and ending on (B) in the case of any notification provided
of the Public Health Service Act (42 U.S.C. the date of the enactment of this Act, 30 pursuant to paragraph (1) under section
300gg et seq.); days after the date of such enactment; and 8905a(f)(2)(A) of title 5, United States Code,
(v) information on the availability of fi- (B) with respect to such an individual who the Office of Personnel Management shall
nancial assistance with respect to enrolling is within a furlough period during the period prescribe a model for such notification.
in a qualified health plan, including the beginning on the first day after the date of (j) REGULATIONS.—The Secretary of the
maximum income limit for eligibility for the the enactment of this Act and ending on De- Treasury and the Secretary of Labor may
premium tax credit under section 36B of the cember 31, 2020, 30 days after the date of the
Internal Revenue Code of 1986; and jointly prescribe such regulations or other
beginning of such furlough period.
(vi) information on any special enrollment (3) MODEL NOTICES.—Not later than 30 days guidance as may be necessary or appropriate
periods during which any assistance eligible after the date of enactment of this Act, with to carry out the provisions of this section,
individual described in subsection (c)(1)(A) respect to any assistance eligible individual including the prevention of fraud and abuse
may be eligible to enroll, with financial as- described in subsection (c)(3)— under this section, except that the Secretary
sistance, in a qualified health plan offered (A) the Secretary of Labor, in consultation of Labor and the Secretary of Health and
through such Exchange (including a special with the Secretary of the Treasury and the Human Services may prescribe such regula-
enrollment period for which an individual Secretary of Health and Human Services, tions (including interim final regulations) or
may be eligible due to the expiration of pre- shall prescribe models for the notification other guidance as may be necessary or ap-
mium assistance pursuant to a limitation required under this paragraph (other than propriate to carry out the provisions of sub-
specified under subsection (b)(1)); and the notification described in subparagraph
(H) information regarding compliance with sections (e), (g), (h), (i), and (k).
(B)); and
the requirements of subsection (n). (B) in the case of any notification provided (k) OUTREACH.—
(3) NOTICE IN CONNECTION WITH EXTENDED pursuant to paragraph (1) under section (1) IN GENERAL.—The Secretary of Labor, in
ELECTION PERIODS.—In the case of any assist- 8905a(f)(2)(A) of title 5, United States Code, consultation with the Secretary of the
ance eligible individual described in sub- the Office of Personnel Management shall Treasury and the Secretary of Health and
section (c)(1) (or any individual described in prescribe a model for such notification. Human Services, shall provide outreach con-
subsection (d)(1)) who became entitled to (i) NOTICE OF EXPIRATION OF PERIOD OF sisting of public education and enrollment
elect COBRA continuation coverage before PREMIUM ASSISTANCE.— assistance relating to premium assistance
the date of the enactment of this Act, the (1) IN GENERAL.—With respect to any as- provided under this section. Such outreach
administrator of the applicable group health sistance eligible individual (as applicable), shall target employers, group health plan ad-
plan (or other entity) shall provide (within 60 subject to paragraph (2), the requirements of ministrators, public assistance programs,
days after the date of enactment of this Act) section 606(a)(4) of the Employee Retirement States, insurers, and other entities as deter-
for the additional notification required to be Income Security Act of 1974 (29 U.S.C. mined appropriate by such Secretaries. Such
provided under paragraph (1) and failure to 1166(4)), section 4980B(f)(6)(D) of the Internal outreach shall include an initial focus on
provide such notice shall be treated as a fail- Revenue Code of 1986, section 2206(4) of the those individuals electing continuation cov-
ure to meet the notice requirements under Public Health Service Act (42 U.S.C. 300bb– erage who are referred to in subsection (g)(3).
the applicable COBRA continuation provi- 6(4)), or section 8905a(f)(2)(A) of title 5, Information on such premium assistance, in-
sion. United States Code, shall not be treated as cluding enrollment, shall also be made avail-
(4) MODEL NOTICES.—Not later than 30 days met unless the employer of the individual, able on websites of the Departments of
after the date of enactment of this Act, with during the period specified under paragraph Labor, Treasury, and Health and Human
respect to any assistance eligible individual (3), provides to such individual a written no- Services.
SSpencer on DSK126QN23PROD with SENATE
described in subsection (c)(1)— tice in clear and understandable language— (2) ENROLLMENT UNDER MEDICARE.—The
(A) the Secretary of Labor, in consultation (A) that the premium assistance for such Secretary of Health and Human Services
with the Secretary of the Treasury and the individual will expire soon and the promi- shall provide outreach consisting of public
Secretary of Health and Human Services, nent identification of the date of such expi- education. Such outreach shall target indi-
shall prescribe models for the additional no- ration; viduals who lose health insurance coverage.
tification required under this paragraph (B) that such individual may be eligible for Such outreach shall include information re-
(other than the additional notification de- coverage without any premium assistance garding enrollment for benefits under title
scribed in subparagraph (B)); and through— XVIII of the Social Security Act (42 U.S.C.
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4773
1395 et seq.) for purposes of preventing mis- vidual and an employer of such individual, of 1986, the Secretary of Labor and the Sec-
taken delays of such enrollment by such in- the greater of— retary of the Treasury, respectively, may
dividuals, including lifetime penalties for (i) such individual’s work hours in the not waive or extend any deadline with re-
failure of timely enrollment. month prior (or in the case such individual spect to the provision of notices described in
(l) DEFINITIONS.—For purposes of this sec- had no work hours in the month prior and subsections (g), (h), and (i).
tion: had work hours in the 3 months prior, the SEC. 203. AMENDMENTS TO THE INTERNAL REV-
(1) ADMINISTRATOR.—The term ‘‘adminis- last month with work hours within the prior ENUE CODE OF 1986.
trator’’ has the meaning given such term in 3 months); and (a) COBRA PREMIUM ASSISTANCE.—
section 3(16)(A) of the Employee Retirement (ii) such individual’s work hours during the (1) IN GENERAL.—Subchapter B of chapter
Income Security Act of 1974. period beginning January 1, 2020, and ending 65 of the Internal Revenue Code of 1986 is
(2) CHURCH PLAN.—The term ‘‘church plan’’ January 31, 2020. amended by adding at the end the following
(m) REPORTS.— new section:
means a plan, as described in section 414(e) of
(1) INTERIM REPORT.—The Secretary of the
the Internal Revenue Code of 1986, that pro- ‘‘SEC. 6432. CONTINUATION COVERAGE PREMIUM
Treasury and the Secretary of Labor shall ASSISTANCE.
vides medical care to employees or their de-
jointly submit an interim report to the Com-
pendents. ‘‘(a) IN GENERAL.—The person to whom pre-
mittee on Education and Labor, the Com-
(3) COBRA CONTINUATION COVERAGE.—The miums are payable for continuation cov-
mittee on Ways and Means, and the Com-
term ‘‘COBRA continuation coverage’’ erage under section 202(a)(1) of the Contin-
mittee on Energy and Commerce of the
means continuation coverage provided pur- uous Health Coverage for Workers Act shall
House of Representatives and the Committee
suant to part 6 of subtitle B of title I of the on Health, Education, Labor, and Pensions be allowed as a credit against the tax im-
Employee Retirement Income Security Act and the Committee on Finance of the Senate posed by section 3111(a), or so much of the
of 1974 (other than under section 609), title regarding the premium assistance provided taxes imposed under section 3221(a) as are at-
XXII of the Public Health Service Act, sec- under this section that includes— tributable to the rate in effect under section
tion 4980B of the Internal Revenue Code of (A) the number of individuals provided 3111(a), for each calendar quarter an amount
1986 (other than subsection (f)(1) of such sec- such assistance as of the date of the report; equal to the premiums not paid by assistance
tion insofar as it relates to pediatric vac- and eligible individuals for such coverage by rea-
cines), or section 8905a of title 5, United (B) the total amount of expenditures in- son of such section 202(a)(1) with respect to
States Code, or under a State program that curred (with administrative expenditures such calendar quarter.
provides comparable continuation coverage. noted separately) in connection with such ‘‘(b) PERSON TO WHOM PREMIUMS ARE PAY-
Such term does not include coverage under a assistance as of the date of the report. ABLE.—For purposes of subsection (a), except
health flexible spending arrangement under (2) FINAL REPORT.—As soon as practicable as otherwise provided by the Secretary, the
a cafeteria plan within the meaning of sec- after the last period of COBRA continuation person to whom premiums are payable under
tion 125 of the Internal Revenue Code of 1986. coverage for which premium assistance is such continuation coverage shall be treated
(4) COBRA CONTINUATION PROVISION.—The provided under this section, the Secretary of as being—
term ‘‘COBRA continuation provision’’ the Treasury and the Secretary of Labor ‘‘(1) in the case of any group health plan
means the provisions of law described in shall jointly submit a final report to each which is a multiemployer plan (as defined in
paragraph (3). Committee referred to in paragraph (1) that section 3(37) of the Employee Retirement In-
(5) COVERED EMPLOYEE.—The term ‘‘cov- includes— come Security Act of 1974), the plan,
ered employee’’ has the meaning given such (A) the number of individuals provided pre- ‘‘(2) in the case of any group health plan
term in section 607(2) of the Employee Re- mium assistance under this section; not described in paragraph (1)—
tirement Income Security Act of 1974. (B) the average dollar amount (monthly ‘‘(A) which provides church plan continu-
(6) QUALIFIED BENEFICIARY.—The term and annually) of premium assistance pro- ation coverage described in section
‘‘qualified beneficiary’’ has the meaning vided to such individuals; and 202(a)(1)(A)(ii), furlough continuation cov-
given such term in section 607(3) of the Em- (C) the total amount of expenditures in- erage described in section 202(a)(1)(A)(iii) of
ployee Retirement Income Security Act of curred (with administrative expenditures the Continuous Health Coverage for Workers
1974. noted separately) in connection with pre- Act or subject to the COBRA continuation
(7) GROUP HEALTH PLAN.—The term ‘‘group mium assistance under this section. provisions contained in—
health plan’’ has the meaning given such (n) LIMITATION.— ‘‘(i) this title,
term in section 607(1) of the Employee Re- (1) IN GENERAL.—Notwithstanding section ‘‘(ii) the Employee Retirement Income Se-
tirement Income Security Act of 1974. 602(1) of the Employee Retirement Income curity Act of 1974,
(8) STATE.—The term ‘‘State’’ includes the Security Act of 1974 (29 U.S.C. 1162(1)) or any ‘‘(iii) the Public Health Service Act, or
District of Columbia, the Commonwealth of other provision of part 6 of subtitle B of title ‘‘(iv) title 5, United States Code, or
Puerto Rico, the Virgin Islands, Guam, I of such Act of 1974 (29 U.S.C. 1161 et seq.), ‘‘(B) under which some or all of the cov-
American Samoa, and the Commonwealth of section 2202(1) of the Public Health Service erage is not provided by insurance,
the Northern Mariana Islands. Act (42 U.S.C. 300bb–2) or any other provision the employer maintaining the plan, and
(9) PERIOD OF COVERAGE.—Any reference in of such Act (42 U.S.C. 201 et seq.), section ‘‘(3) in the case of any group health plan
this section to a period of coverage shall be 4980B(f)(2)(A) of the Internal Revenue Code of not described in paragraph (1) or (2), the in-
treated as a reference to a monthly or short- 1986 or any other provision of such Code, sec- surer providing the coverage under the group
er period of coverage with respect to which tion 8905a of title 5, United States Code, or health plan.
premiums are charged with respect to such any provision of State law, in the case of ‘‘(c) LIMITATIONS AND REFUNDABILITY.—
coverage. coverage described in subsection (a)(1) for an ‘‘(1) CREDIT LIMITED TO CERTAIN EMPLOY-
(10) PLAN SPONSOR.—The term ‘‘plan spon- assistance eligible individual— MENT TAXES.—The credit allowed by sub-
sor’’ has the meaning given such term in sec- (A) such coverage shall exclude coverage of section (a) with respect to any calendar
tion 3(16)(B) of the Employee Retirement In- an abortion (except to the extent described quarter shall not exceed the tax imposed by
come Security Act of 1974. in section 507(a) of division A of Public Law section 3111(a), or so much of the taxes im-
(11) FURLOUGH PERIOD.— 116–94) for any period of coverage beginning posed under section 3221(a) as are attrib-
(A) IN GENERAL.—The term ‘‘furlough pe- on or after the date of enactment of this Act, utable to the rate in effect under section
riod’’ means, with respect to an individual for which subsection (a)(1) applies to the in- 3111(a), for such calendar quarter (reduced by
and an employer of such individual, a pe- dividual; and any credits allowed under subsections (e) and
riod— (B) if such coverage would, but for the re- (f) of section 3111, sections 7001 and 7003 of
(i) beginning with the first month begin- quirement under subparagraph (A), include the Families First Coronavirus Response
ning on or after March 1, 2020, and before De- coverage of abortion (except to the extent Act, section 2301 of the CARES Act, and sec-
cember 31, 2020, during which such individ- described in such subparagraph) for such in- tions 20204 and 20212 of the COVID–19 Tax Re-
ual’s employer reduces such individual’s dividual, the coverage shall be modified for lief Act of 2020 for such quarter) on the wages
work hours (due to a lack of work, funds, or such individual so that the coverage excludes paid with respect to the employment of all
other nondisciplinary reason) to an amount abortion (except to the extent described in employees of the employer.
that is less than 70 percent of the base month such subparagraph) for any period of cov- ‘‘(2) REFUNDABILITY OF EXCESS CREDIT.—
amount; and erage as described in such subparagraph. ‘‘(A) CREDIT IS REFUNDABLE.—If the amount
(ii) ending with the earlier of— (2) RULE OF CONSTRUCTION.—Nothing in this of the credit under subsection (a) exceeds the
(I) the first month beginning after Decem- limitation of paragraph (1) for any calendar
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subtitle, or any amendment made by this
ber 31, 2020; or subtitle, may be construed to require a quarter, such excess shall be treated as an
(II) the month following the first month health plan, including any COBRA continu- overpayment that shall be refunded under
during which work hours of such employee ation coverage, to provide coverage of any sections 6402(a) and 6413(b).
are greater than 80 percent of work hours of abortion. ‘‘(B) CREDIT MAY BE ADVANCED.—In antici-
the base month amount. (o) DEADLINES WITH RESPECT TO NOTICES.— pation of the credit, including the refundable
(B) BASE MONTH AMOUNT.—For purposes of Notwithstanding section 518 of the Employee portion under subparagraph (A), the credit
subparagraph (A), the term ‘‘base month Retirement Income Security Act of 1974 and may be advanced, according to forms and in-
amount’’ means, with respect to an indi- section 7508A of the Internal Revenue Code structions provided by the Secretary, up to
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S4774 CONGRESSIONAL RECORD — SENATE August 4, 2020
an amount calculated under subsection (a) ject to the limitations provided in this sec- ‘‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY
through the end of the most recent payroll tion, based on such information as the Sec- HEALTH PLAN OF CESSATION OF
ELIGIBILITY FOR CONTINUATION
period in the quarter. retary shall require, COVERAGE PREMIUM ASSISTANCE.
‘‘(C) TREATMENT OF DEPOSITS.—The Sec- ‘‘(4) to provide for the reconciliation of
retary shall waive any penalty under section ‘‘(a) IN GENERAL.—Except in the case of
such advance payment with the amount of failure described in subsection (b) or (c), any
6656 for any failure to make a deposit of the the credit at the time of filing the return of
tax imposed by section 3111(a), or so much of person required to notify a group health plan
tax for the applicable quarter or taxable under section 202(a)(2)(B) of the Continuous
the taxes imposed under section 3221(a) as year, and
are attributable to the rate in effect under Health Coverage for Workers Act who fails
‘‘(5) with respect to the application of the to make such a notification at such time and
section 3111(a), if the Secretary determines credit to third party payors (including pro-
that such failure was due to the anticipation in such manner as the Secretary of Labor
fessional employer organizations, certified may require shall pay a penalty of $250.
of the credit allowed under this section. professional employer organizations, or ‘‘(b) INTENTIONAL FAILURE.—In the case of
‘‘(D) TREATMENT OF PAYMENTS.—For pur- agents under section 3504). any such failure that is fraudulent, such per-
poses of section 1324 of title 31, United States
‘‘(h) LIMITATION.—In the case of any period son shall pay a penalty equal to the greater
Code, any amounts due to an employer under
of coverage (as defined in section 202(l) of the of—
this paragraph shall be treated in the same
‘‘(1) $250, or
manner as a refund due from a credit provi- Continuous Health Coverage for Workers
‘‘(2) 110 percent of the premium assistance
sion referred to in subsection (b)(2) of such Act) beginning on or after the date of enact-
provided under section 202(a)(1)(A) of the
section. ment of this section, no credit shall be al- Continuous Health Coverage for Workers Act
‘‘(3) LIMITATION ON REIMBURSEMENT FOR lowed under this section with respect to any after termination of eligibility under such
CERTAIN EMPLOYEES.—In the case of an indi-
coverage that includes coverage of an abor- section.
vidual who for any month is an assistance el-
tion (except as described in section 507(a) of ‘‘(c) REASONABLE CAUSE EXCEPTION.—No
igible individual described in subparagraph
division A of Public Law 116–94).’’. penalty shall be imposed under this section
(B) or (C) of section 202(a)(3) of the Contin-
(2) SOCIAL SECURITY TRUST FUNDS HELD with respect to any failure if it is shown that
uous Health Coverage for Workers Act with
HARMLESS.—There are hereby appropriated such failure is due to reasonable cause and
respect to any coverage, the credit deter-
to the Federal Old-Age and Survivors Insur- not to willful neglect.’’.
mined with respect to such individual under
ance Trust Fund and the Federal Disability (2) CLERICAL AMENDMENT.—The table of
subsection (a) for any such month ending
Insurance Trust Fund established under sec- sections of part I of subchapter B of chapter
during a calendar quarter shall not exceed
tion 201 of the Social Security Act (42 U.S.C. 68 of such Code is amended by adding at the
the amount of premium the individual would
401) and the Social Security Equivalent Ben- end the following new item:
have paid for a full month of such coverage
for the month preceding the first month for efit Account established under section 15A(a) ‘‘Sec. 6720C. Penalty for failure to notify
which an individual is such an assistance eli- of the Railroad Retirement Act of 1974 (45 health plan of cessation of eli-
gible individual. U.S.C. 231n–1(a)) amounts equal to the reduc- gibility for continuation cov-
‘‘(d) GOVERNMENTAL ENTITIES.—For pur- tion in revenues to the Treasury by reason of erage premium assistance.’’.
poses of this section, the term ‘person’ in- this subsection (without regard to this para- (c) COORDINATION WITH HCTC.—
cludes any governmental entity or Indian graph). Amounts appropriated by the pre- (1) IN GENERAL.—Section 35(g)(9) of the In-
tribal government (as defined in section ceding sentence shall be transferred from the ternal Revenue Code of 1986 is amended to
139E(c)(1)). general fund at such times and in such man- read as follows:
‘‘(e) DENIAL OF DOUBLE BENEFIT.—For pur- ner as to replicate to the extent possible the ‘‘(9) CONTINUATION COVERAGE PREMIUM AS-
poses of chapter 1, the gross income of any transfers which would have occurred to such SISTANCE.—In the case of an assistance eligi-
person allowed a credit under this section Trust Fund or Account had this section not ble individual who receives premium assist-
shall be increased for the taxable year which been enacted. ance for continuation coverage under section
includes the last day of any calendar quarter 202(a)(1) of the Continuous Health Coverage
(3) CLERICAL AMENDMENT.—The table of
with respect to which such credit is allowed for Workers Act for any month during the
sections for subchapter B of chapter 65 of the
by the amount of such credit. No amount for taxable year, such individual shall not be
Internal Revenue Code of 1986 is amended by
which a credit is allowed under this section treated as an eligible individual, a certified
shall be taken into account as qualified adding at the end the following new item:
individual, or a qualifying family member
wages under section 2301 of the CARES Act ‘‘Sec. 6432. Continuation coverage premium for purposes of this section or section 7527
or as qualified health plan expenses under assistance.’’. with respect to such month.’’.
section 7001(d) or 7003(d) of the Families (4) EFFECTIVE DATE.—The amendments (2) EFFECTIVE DATE.—The amendment
First Coronavirus Response Act. made by this subsection shall apply to pre- made by paragraph (1) shall apply to taxable
‘‘(f) REPORTING.—Each person entitled to years ending after the date of the enactment
miums to which section 202(a)(1)(A) applies.
reimbursement under subsection (a) for any of this Act.
(5) SPECIAL RULE IN CASE OF EMPLOYEE PAY-
period shall submit such reports (at such (d) EXCLUSION OF CONTINUATION COVERAGE
MENT THAT IS NOT REQUIRED UNDER THIS SEC-
time and in such manner) as the Secretary PREMIUM ASSISTANCE FROM GROSS INCOME.—
TION.—
may require, including— (1) IN GENERAL.—Part III of subchapter B of
‘‘(1) an attestation of involuntary termi- (A) IN GENERAL.—In the case of an assist-
ance eligible individual who pays, with re- chapter 1 of the Internal Revenue Code of
nation of employment, reduction of hours, or 1986 is amended by inserting after section
furloughing, for each assistance eligible indi- spect any period of coverage to which section
202(a)(1)(A) applies, the amount of the pre- 139H the following new section:
vidual on the basis of whose termination, re- ‘‘SEC. 139I. CONTINUATION COVERAGE PREMIUM
duction of hours, or furloughing entitlement mium for such coverage that the individual
ASSISTANCE.
to reimbursement is claimed under sub- would have (but for this subtitle) been re-
‘‘In the case of an assistance eligible indi-
section (a), quired to pay, the person to whom such pay-
vidual (as defined in subsection (a)(3) of sec-
‘‘(2) a report of the amount of payroll taxes ment is payable shall reimburse such indi-
tion 202 of the Continuous Health Coverage
offset under subsection (a) for the reporting vidual for the amount of such premium paid.
for Workers Act), gross income does not in-
period, and (B) CREDIT OF REIMBURSEMENT.—A person
clude any premium assistance provided
‘‘(3) a report containing the TINs of all to which subparagraph (A) applies shall be
under subsection (a)(1) of such section.’’.
covered employees, the amount of subsidy allowed a credit in the manner provided (2) CLERICAL AMENDMENT.—The table of
reimbursed with respect to each employee, under section 6432 of the Internal Revenue sections for part III of subchapter B of chap-
and a designation with respect to each em- Code of 1986 for any payment made to the ter 1 of such Code is amended by inserting
ployee as to whether the subsidy reimburse- employee under such subparagraph. after the item relating to section 139H the
ment is for coverage of 1 individual or 2 or (C) PAYMENT OF CREDITS.—Any person to following new item:
more individuals. which subparagraph (A) applies shall make
‘‘(g) REGULATIONS.—The Secretary shall ‘‘Sec. 139I. Continuation coverage premium
the payment required under such clause to
issue such regulations or other guidance as assistance.’’.
the individual not later than 60 days after
may be necessary or appropriate to carry out (3) EFFECTIVE DATE.—The amendments
the date on which such individual elects con-
this section, including— made by this subsection shall apply to tax-
tinuation coverage under section 202(a)(1) of able years ending after the date of the enact-
‘‘(1) the requirement to report information the Continuous Health Coverage for Workers
or the establishment of other methods for ment of this Act.
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Act.
verifying the correct amounts of reimburse- SEC. 204. RULE OF CONSTRUCTION.
ments under this section, (b)PENALTY FOR FAILURE TO NOTIFY In all matters of interpretation, rules, and
‘‘(2) the application of this section to group HEALTH PLAN OF CESSATION OF ELIGIBILITY operational procedures, the language of this
health plans that are multiemployer plans FOR PREMIUM ASSISTANCE.— subtitle shall be interpreted broadly for the
(as defined in section 3(37) of the Employee (1) IN GENERAL.—Part I of subchapter B of benefit of workers and their families.
Retirement Income Security Act of 1974), chapter 68 of the Internal Revenue Code of
‘‘(3) to allow the advance payment of the 1986 is amended by adding at the end the fol- SA 2516. Ms. MCSALLY submitted an
credit determined under subsection (a), sub- lowing new section: amendment intended to be proposed by
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4775
her to the bill S. 178, to condemn gross tion Program and Health Care Enhancement tories according to the formula that applied
human rights violations of ethnic Act (Public Law 116–139) and submit such up- to the Public Health Emergency Prepared-
Turkic Muslims in Xinjiang, and call- dates to the Secretary not later than 60 days ness cooperative agreement in fiscal year
after funds appropriated in this paragraph in 2019: Provided further, That not less than
ing for an end to arbitrary detention, $500,000,000 shall be allocated in coordination
this Act have been awarded to such recipi-
torture, and harassment of these com- ent: Provided further, That funds an entity with the Director of the Indian Health Serv-
munities inside and outside China; receives from amounts described in the first ice, to tribes, tribal organizations, urban In-
which was ordered to lie on the table; proviso in this paragraph may also be used dian health organizations, or health service
as follows: for the rent, lease, purchase, acquisition, providers to tribes: Provided further, That the
At the appropriate place, insert the fol- construction, alteration, renovation, or Secretary of Health and Human Services (re-
lowing: equipping of non-federally owned facilities to ferred to in this paragraph as the ‘‘Sec-
improve coronavirus preparedness and re- retary’’) may satisfy the funding thresholds
TITLE ll—
sponse capability at the State and local outlined in the first and third provisos under
DEPARTMENT OF HEALTH AND HUMAN this paragraph in this Act by making awards
level: Provided further, That such amount is
SERVICES through other grant or cooperative agree-
designated by the Congress as being for an
OFFICE OF THE SECRETARY emergency requirement pursuant to section ment mechanisms: Provided further, That the
PUBLIC HEALTH AND SOCIAL SERVICES 251(b)(2)(A)(i) of the Balanced Budget and Governor or designee of each State, locality,
EMERGENCY FUND Emergency Deficit Control Act of 1985. territory, tribe, or tribal organization re-
(INCLUDING TRANSFER OF FUNDS) ceiving funds pursuant to this title shall up-
For an additional amount for ‘‘Public SA 2517. Ms. MCSALLY submitted an date their plans, as applicable, for COVID–19
amendment intended to be proposed to testing and contact tracing submitted to the
Health and Social Services Emergency
amendment SA 2499 proposed by Mr. Secretary pursuant to the Paycheck Protec-
Fund’’, $16,000,000,000, to remain available
MCCONNELL to the bill S. 178, to con- tion Program and Health Care Enhancement
until expended, to prevent, prepare for, and
Act (Public Law 116–139) and submit such up-
respond to coronavirus, domestically or demn gross human rights violations of dates to the Secretary not later than 60 days
internationally, which shall be for necessary ethnic Turkic Muslims in Xinjiang, and after funds appropriated in this paragraph in
expenses for testing, contact tracing, sur- calling for an end to arbitrary deten- this Act have been awarded to such recipi-
veillance, containment, and mitigation to
tion, torture, and harassment of these ent: Provided further, That funds an entity
monitor and suppress COVID–19, including
tests for both active infection and prior ex- communities inside and outside China; receives from amounts described in the first
which was ordered to lie on the table; proviso in this paragraph may also be used
posure, including molecular, antigen, and se-
as follows: for the rent, lease, purchase, acquisition,
rological tests, the manufacturing, procure-
construction, alteration, renovation, or
ment and distribution of tests, testing equip- At the appropriate place, insert the fol-
equipping of non-federally owned facilities to
ment and testing supplies, including per- lowing:
improve coronavirus preparedness and re-
sonal protective equipment needed for ad- TITLE ll— sponse capability at the State and local
ministering tests, the development and vali- DEPARTMENT OF HEALTH AND HUMAN level: Provided further, That such amount is
dation of rapid, molecular point-of-care SERVICES designated by the Congress as being for an
tests, and other tests, support for workforce,
OFFICE OF THE SECRETARY emergency requirement pursuant to section
epidemiology, to scale up academic, commer-
PUBLIC HEALTH AND SOCIAL SERVICES 251(b)(2)(A)(i) of the Balanced Budget and
cial, public health, and hospital laboratories,
EMERGENCY FUND Emergency Deficit Control Act of 1985.
to conduct surveillance and contact tracing,
support development of COVID–19 testing (INCLUDING TRANSFER OF FUNDS)
SA 2518. Mr. BLUNT (for himself,
plans, and other related activities related to For an additional amount for ‘‘Public
COVID–19 testing: Provided, That of the Health and Social Services Emergency
Mrs. CAPITO, and Mrs. HYDE-SMITH)
amount appropriated under this paragraph in Fund’’, $16,000,000,000, to remain available submitted an amendment intended to
this Act, not less than $15,000,000,000 shall be until expended, to prevent, prepare for, and be proposed by him to the bill S. 178, to
for States, localities, territories, tribes, trib- respond to coronavirus, domestically or condemn gross human rights violations
al organizations, urban Indian health organi- internationally, which shall be for necessary of ethnic Turkic Muslims in Xinjiang,
zations, or health service providers to tribes expenses for testing, contact tracing, sur- and calling for an end to arbitrary de-
for necessary expenses for testing, contact veillance, containment, and mitigation to tention, torture, and harassment of
tracing, surveillance, containment, and miti- monitor and suppress COVID–19, including these communities inside and outside
gation, including support for workforce, epi- tests for both active infection and prior ex-
demiology, use by employers, elementary posure, including molecular, antigen, and se-
China; which was ordered to lie on the
and secondary schools, child care facilities, rological tests, the manufacturing, procure- table; as follows:
institutions of higher education, long-term ment and distribution of tests, testing equip- At the appropriate place, insert the fol-
care facilities, or in other settings, scale up ment and testing supplies, including per- lowing:
of testing by public health, academic, com- sonal protective equipment needed for ad- DEPARTMENT OF HEALTH AND HUMAN
mercial, and hospital laboratories, and com- ministering tests, the development and vali- SERVICES
munity-based testing sites, health care fa- dation of rapid, molecular point-of-care NATIONAL INSTITUTES OF HEALTH
cilities, and other entities engaged in tests, and other tests, support for workforce, NATIONAL HEART, LUNG, AND BLOOD INSTITUTE
COVID–19 testing, and other related activi- epidemiology, to scale up academic, commer- For an additional amount for ‘‘National
ties related to COVID–19 testing, contact cial, public health, and hospital laboratories, Heart, Lung, and Blood Institute’’,
tracing, surveillance, containment, and miti- to conduct surveillance and contact tracing, $290,000,000, to remain available until Sep-
gation: Provided further, That the amount support development of COVID–19 testing tember 30, 2024, to prevent, prepare for, and
identified in the preceding proviso shall be plans, and other related activities related to respond to coronavirus, domestically or
allocated to States, localities, and terri- COVID–19 testing: Provided, That of the internationally: Provided, That such amount
tories according to the formula that applied amount appropriated under this paragraph in is designated by the Congress as being for an
to the Public Health Emergency Prepared- this Act, not less than $15,000,000,000 shall be emergency requirement pursuant to section
ness cooperative agreement in fiscal year for States, localities, territories, tribes, trib- 251(b)(2)(A)(i) of the Balanced Budget and
2019: Provided further, That not less than al organizations, urban Indian health organi- Emergency Deficit Control Act of 1985.
$500,000,000 shall be allocated in coordination zations, or health service providers to tribes
NATIONAL INSTITUTE OF DIABETES AND
with the Director of the Indian Health Serv- for necessary expenses for testing, contact
DIGESTIVE AND KIDNEY DISEASES
ice, to tribes, tribal organizations, urban In- tracing, surveillance, containment, and miti-
dian health organizations, or health service gation, including support for workforce, epi- For an additional amount for ‘‘National In-
providers to tribes: Provided further, That the demiology, use by employers, elementary stitute of Diabetes and Digestive and Kidney
Secretary of Health and Human Services (re- and secondary schools, child care facilities, Diseases’’, $200,000,000, to remain available
ferred to in this paragraph as the ‘‘Sec- institutions of higher education, long-term until September 30, 2024, to prevent, prepare
retary’’) may satisfy the funding thresholds care facilities, or in other settings, scale up for, and respond to coronavirus, domestically
outlined in the first and third provisos under of testing by public health, academic, com- or internationally: Provided, That such
this paragraph in this Act by making awards mercial, and hospital laboratories, and com- amount is designated by the Congress as
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through other grant or cooperative agree- munity-based testing sites, health care fa- being for an emergency requirement pursu-
ment mechanisms: Provided further, That the cilities, and other entities engaged in ant to section 251(b)(2)(A)(i) of the Balanced
Governor or designee of each State, locality, COVID–19 testing, and other related activi- Budget and Emergency Deficit Control Act
territory, tribe, or tribal organization re- ties related to COVID–19 testing, contact of 1985.
ceiving funds pursuant to this title shall up- tracing, surveillance, containment, and miti- NATIONAL INSTITUTE OF ALLERGY AND
date their plans, as applicable, for COVID–19 gation: Provided further, That the amount INFECTIOUS DISEASES
testing and contact tracing submitted to the identified in the preceding proviso shall be For an additional amount for ‘‘National In-
Secretary pursuant to the Paycheck Protec- allocated to States, localities, and terri- stitute of Allergy and Infectious Diseases’’,
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S4776 CONGRESSIONAL RECORD — SENATE August 4, 2020
$480,555,000, to remain available until Sep- partnership: Provided further, that no less linked to coronavirus: Provided further, That
tember 30, 2024, to prevent, prepare for, and than $240,000,000 of the amount provided products purchased with funds appropriated
respond to coronavirus, domestically or under this heading in this Act shall be for under this paragraph in this Act may, at the
internationally: Provided, That $55,000,000 supplements to existing research training discretion of the Secretary of Health and
shall be for Regional Biocontainment Lab- awards for extensions and other costs: Pro- Human Services, be deposited in the Stra-
oratories: Provided further, That funding pro- vided further, That funds available under this tegic National Stockpile under section 319F–
vided in the previous proviso shall be divided heading in this Act may be transferred to 2 of the Public Health Service Act: Provided
evenly among the eleven laboratories: Pro- the accounts of Institutes and Centers of the further, That funds appropriated under this
vided further, That such amount is des- NIH: Provided further, That this transfer au- paragraph in this Act may be transferred to,
ignated by the Congress as being for an thority is in addition to any other transfer and merged with, the fund authorized by sec-
emergency requirement pursuant to section authority available to the NIH: Provided fur- tion 319F–4, the Covered Counter measure
251(b)(2)(A)(i) of the Balanced Budget and ther, That such amount is designated by the Process Fund, of the Public Health Service
Emergency Deficit Control Act of 1985. Congress as being for an emergency require- Act: Provided further, That of the amount ap-
EUNICE KENNEDY SHRIVER NATIONAL INSTITUTE ment pursuant to section 251(b)(2)(A)(i) of propriated under this paragraph in this Act,
OF CHILD HEALTH AND HUMAN DEVELOPMENT the Balanced Budget and Emergency Deficit $20,000,000,000 shall be available to the Bio-
Control Act of 1985. medical Advanced Research and Develop-
For an additional amount for ‘‘Eunice Ken- ment Authority for necessary expenses of
nedy Shriver National Institute of Child
SA 2519. Mr. BLUNT (for himself and manufacturing, production, and purchase, at
Health and Human Development’’, the discretion of the Secretary, of vaccines,
$172,680,000, to remain available until Sep- Mr. DAINES) submitted an amendment
intended to be proposed by him to the therapeutics, diagnostics, and small mol-
tember 30, 2024, to prevent, prepare for, and ecule active pharmaceutical ingredients, in-
respond to coronavirus, domestically or bill S. 178, to condemn gross human cluding the development, translation, and
internationally: Provided, That such amount rights violations of ethnic Turkic Mus- demonstration at scale of innovations in
is designated by the Congress as being for an lims in Xinjiang, and calling for an end manufacturing platforms: Provided further,
emergency requirement pursuant to section to arbitrary detention, torture, and That funds in the previous proviso may be
251(b)(2)(A)(i) of the Balanced Budget and harassment of these communities in- used for the construction or renovation of
Emergency Deficit Control Act of 1985. U.S.-based next generation manufacturing
side and outside China; which was or-
NATIONAL INSTITUTE OF MENTAL HEALTH
dered to lie on the table; as follows: facilities, other than facilities owned by the
For an additional amount for ‘‘National In- United States Government: Provided further,
At the appropriate place, insert the fol-
stitute of Mental Health’’, $200,000,000, to re- That of the amount provided under this
lowing: heading in this Act, $6,000,000,000 shall be for
main available until September 30, 2024, to
prevent, prepare for, and respond to TITLE ll— activities to plan, prepare for, promote, dis-
coronavirus, domestically or internation- DEPARTMENT OF HEALTH AND HUMAN tribute, administer, monitor, and track
ally: Provided, That such amount is des- SERVICES coronavirus vaccines to ensure broad-based
ignated by the Congress as being for an OFFICE OF THE SECRETARY distribution, access, and vaccine coverage:
emergency requirement pursuant to section PUBLIC HEALTH AND SOCIAL SERVICES Provided further, That the Secretary shall co-
251(b)(2)(A)(i) of the Balanced Budget and EMERGENCY FUND ordinate funding and activities outlined in
Emergency Deficit Control Act of 1985. the previous proviso through the Director of
(INCLUDING TRANSFER OF FUNDS)
CDC: Provided further, That the Secretary,
NATIONAL INSTITUTE ON MINORITY HEALTH AND For an additional amount for ‘‘Public through the Director of CDC, shall report to
HEALTH DISPARITIES Health and Social Services Emergency the Committees on Appropriations of the
For an additional amount for ‘‘National In- Fund’’, $26,000,000,000, to remain available House of Representatives and the Senate
stitute on Minority Health and Health Dis- until September 30, 2024, to prevent, prepare within 60 days of enactment of this Act on a
parities’’, $64,334,000, to remain available for, and respond to coronavirus, domestically comprehensive coronavirus vaccine distribu-
until September 30, 2024, to prevent, prepare or internationally, including the develop- tion strategy and spend plan that includes
for, and respond to coronavirus, domestically ment of necessary countermeasures and vac- how existing infrastructure will be lever-
or internationally: Provided, That such cines, prioritizing platform-based tech- aged, enhancements or new infrastructure
amount is designated by the Congress as nologies with U.S.-based manufacturing ca- that may be built, considerations for moving
being for an emergency requirement pursu- pabilities, the purchase of vaccines, thera- and storing vaccines, guidance for how
ant to section 251(b)(2)(A)(i) of the Balanced peutics, diagnostics, necessary medical sup- States and health care providers should pre-
Budget and Emergency Deficit Control Act plies, as well as medical surge capacity, ad- pare for, store, and administer vaccines, na-
of 1985. dressing blood supply chain, workforce mod- tionwide vaccination targets, funding that
NATIONAL CENTER FOR ADVANCING ernization, telehealth access and infrastruc- will be distributed to States, how an infor-
TRANSLATIONAL SCIENCES ture, initial advanced manufacturing, novel mational campaign to both the public and
For an additional amount for ‘‘National dispensing, enhancements to the U.S. Com- health care providers will be executed, and
Center for Advancing Translational missioned Corps, and other preparedness and how the vaccine distribution plan will focus
Sciences’’, $1,224,750,000, to remain available response activities: Provided, That funds ap- efforts on high risk, underserved, and minor-
until September 30, 2024, to prevent, prepare propriated under this paragraph in this Act ity populations: Provided further, That such
for, and respond to coronavirus, domestically may be used to develop and demonstrate in- plan shall be updated and provided to the
or internationally: Provided, That such novations and enhancements to manufac- Committees on Appropriations of the House
amount is designated by the Congress as turing platforms to support such capabili- of Representatives and the Senate 90 days
being for an emergency requirement pursu- ties: Provided further, That the Secretary of after submission of the first plan: Provided
ant to section 251(b)(2)(A)(i) of the Balanced Health and Human Services shall purchase further, That the Secretary shall notify the
Budget and Emergency Deficit Control Act vaccines developed using funds made avail- Committees on Appropriations of the House
of 1985. able under this paragraph in this Act to re- of Representatives and the Senate 2 days in
spond to an outbreak or pandemic related to advance of any obligation in excess of
OFFICE OF THE DIRECTOR
coronavirus in quantities determined by the $50,000,000, including but not limited to con-
(INCLUDING TRANSFER OF FUNDS) Secretary to be adequate to address the pub- tracts and interagency agreements, from
For an additional amount for ‘‘Office of the lic health need: Provided further, That prod- funds provided in this paragraph in this Act:
Director’’, $12,905,337,000, to remain available ucts purchased by the Federal government Provided further, That funds appropriated
until September 30, 2024, to prevent, prepare with funds made available under this para- under this paragraph in this Act may be used
for, and respond to coronavirus, domestically graph in this Act, including vaccines, thera- for the construction, alteration, or renova-
or internationally: Provided, That not less peutics, and diagnostics, shall be purchased tion of non-federally owned facilities for the
than $10,100,000,000 of the amount provided in accordance with Federal Acquisition Reg- production of vaccines, therapeutics,
under this heading in this Act shall be for ulation guidance on fair and reasonable pric- diagnostics, and medical supplies where the
offsetting the costs related to reductions in ing: Provided further, That the Secretary may Secretary determines that such a contract is
lab productivity resulting from the take such measures authorized under current necessary to secure sufficient amounts of
coronavirus pandemic or public health meas- law to ensure that vaccines, therapeutics, such supplies: Provided further, That the not
ures related to the coronavirus pandemic: and diagnostics developed from funds pro- later than 30 days after enactment of this
Provided further, That $1,325,337,000 of the vided in this title will be affordable in the Act, and every 30 days thereafter until funds
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amount provided under this heading in this commercial market: Provided further, That in are expended, the Secretary shall report to
Act shall be to support additional scientific carrying out the previous proviso, the Sec- the Committees on Appropriations of the
research or the programs and platforms that retary shall not take actions that delay the House of Representatives and the Senate on
support research: Provided further, That development of such products: Provided fur- uses of funding for Operation Warp Speed,
$1,240,000,000 of the amount provided under ther, That the Secretary shall ensure that detailing current obligations by Department
this heading in this Act shall be provided to protections remain for individuals enrolled or Agency, or component thereof broken out
accelerate the research and development of in group or individual health care coverage by the coronavirus supplemental appropria-
therapeutic interventions and vaccines in with pre-existing conditions, including those tions Act that provided the source of funds:
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4777
Provided further, That the plan outlined in under the terms and conditions established the Secretary shall make supplemental ele-
the previous proviso shall include funding by for funding provided under this heading in mentary and secondary school emergency re-
contract, grant, or other transaction in ex- the CARES Act (Public Law 116–136). lief grants to each State educational agency
cess of $20,000,000 with a notation of which (b) RESERVATIONS.—After carrying out sub- with an approved application under section
Department or Agency, and component section (a), the Secretary shall reserve the 18003 of division B of the CARES Act (Public
thereof is managing the contract: Provided remaining funds made available as follows: Law 116–136). The Secretary shall award
further, That the Secretary shall enter into (1) 5 percent to carry out section ll12 of funds under this section to each State edu-
an agreement with the National Academies this title. cational agency with an approved applica-
of Sciences, Engineering, and Medicine (2) 67 percent to carry out section ll13 of tion within 15 calendar days of enactment of
(‘‘Academies’’) to develop a decision frame- this title. this Act.
work to assist domestic and global health (3) 28 percent to carry out section ll14 of (b) ALLOCATIONS TO STATES.—The amount
authorities in planning an equitable dis- this title. of each grant under subsection (a) shall be
tribution of coronavirus vaccines: Provided GOVERNOR’S EMERGENCY EDUCATION RELIEF allocated by the Secretary to each State in
further, That the Academies, in developing FUND the same proportion as each State received
the framework, shall consider equity criteria under part A of title I of the ESEA of 1965 in
SEC. ll12. (a) GRANTS.—From funds re-
which may include consideration of risk fac- the most recent fiscal year.
served under section ll11(b)(1) of this title, (c) SUBGRANTS.—From the payment pro-
tors related to health disparities and health the Secretary shall make supplemental
care access, underlying health conditions, vided by the Secretary under subsection (b),
Emergency Education Relief grants to the the State educational agency shall provide
conditions faced by racial and ethnic minori- Governor of each State with an approved ap-
ties, individuals in higher-risk occupations, services and assistance to local educational
plication under section 18002 of division B of agencies and non-public schools, consistent
and first responders, geographic distribution the CARES Act (Public Law 116–136). The with the provisions of this title relating to
of the coronavirus, and vaccine hesitancy: Secretary shall award funds under this sec- the Department of Education. After carrying
Provided further, That the Academies shall tion to the Governor of each State with an out the reservation of funds in section ll15
provide recommendations on vaccine dis- approved application within 30 calendar days of this title, each State shall allocate not
tribution to the Advisory Committee on Im- of enactment of this Act. less than 90 percent of the remaining grant
munization Practices not later than Sep- (b) ALLOCATIONS.—The amount of each funds awarded to the State under this sec-
tember 18, 2020: Provided further, That the grant under subsection (a) shall be allocated tion as subgrants to local educational agen-
agreement shall provide for an ongoing as- by the Secretary to each State as follows: cies (including charter schools that are local
sessment by the Academies of how vaccine (1) 60 percent on the basis of their relative educational agencies) in the State in propor-
distribution meets equity criteria and rec- population of individuals aged 5 through 24. tion to the amount of funds such local edu-
ommendations for how vaccine distribution (2) 40 percent on the basis of their relative cational agencies and charter schools that
may better align with such criteria as appli- number of children counted under section are local educational agencies received under
cable, which shall inform the Advisory Com- 1124(c) of the Elementary and Secondary part A of title I of the ESEA of 1965 in the
mittee on Immunization Practices’s Education Act of 1965 (referred to under this most recent fiscal year. The state edu-
prioritization recommendations and vaccine heading as ‘‘ESEA’’). cational agency shall make such subgrants
distribution activities: Provided further, That (c) USES OF FUNDS.—Grant funds awarded to local educational agencies as follows—
such amount is designated by the Congress under subsection (b) may be used to— (1) one-third of funds shall be awarded not
as being for an emergency requirement pur- (1) provide emergency support through less than 15 calendar days after receiving an
suant to section 251(b)(2)(A)(i) of the Bal- grants to local educational agencies that the award from the Secretary under this section;
anced Budget and Emergency Deficit Control State educational agency deems have been and
Act of 1985. most significantly impacted by coronavirus (2) the remaining two-thirds of funds shall
to support the ability of such local edu- be awarded only after the local educational
SA 2520. Mr. BLUNT (for himself and cational agencies to continue to provide edu- agency submits to the Governor and the
Mr. ALEXANDER) submitted an amend- cational services to their students and to Governor approves a comprehensive school
ment intended to be proposed by him support the on-going functionality of the reopening plan for the 2020–2021 school-year,
to the bill S. 178, to condemn gross local educational agency; based on criteria determined by the Gov-
(2) provide emergency support through ernor in consultation with the state edu-
human rights violations of ethnic
grants to institutions of higher education cational agency (including criteria for the
Turkic Muslims in Xinjiang, and call- serving students within the State that the
ing for an end to arbitrary detention, Governor to carry out subparagraph (A)
Governor determines have been most signifi- through (C)), that describes how the local
torture, and harassment of these com- cantly impacted by coronavirus to support educational agency will safely reopen
munities inside and outside China; the ability of such institutions to continue schools with the physical presence of stu-
which was ordered to lie on the table; to provide educational services and support dents, consistent with maintaining safe and
as follows: the on-going functionality of the institution; continuous operations aligned with chal-
and lenging state academic standards. The Gov-
At the appropriate place, insert the fol-
(3) provide support to any other institution ernor shall approve such plans within 30 days
lowing:
of higher education, local educational agen- after the plan is submitted, subject to the re-
TITLE ll— cy, or education related entity within the quirements in subparagraphs (A) through
DEPARTMENT OF EDUCATION State that the Governor deems essential for (C).
EDUCATION STABILIZATION FUND carrying out emergency educational services (A) A local educational agency that pro-
For an additional amount for ‘‘Education to students for authorized activities de- vides in-person instruction for at least 50
Stabilization Fund’’, $105,000,000,000, to re- scribed in section ll13(e) of this title, the percent of its students where the students
main available through September 30, 2021, ESEA of 1965, the Higher Education Act of physically attend school no less than 50 per-
to prevent, prepare for, and respond to 1965, the provision of child care and early cent of each school-week, as it was defined
coronavirus, domestically or internation- childhood education, social and emotional by the local educational agency prior to the
ally: Provided, That such amount is des- support, career and technical education, coronavirus emergency, shall have its plan
ignated by the Congress as being for an adult education, and the protection of edu- automatically approved.
emergency requirement pursuant to section cation-related jobs. (B) A local educational agency that does
(d) REALLOCATION.—Each Governor shall not provide in-person instruction to any stu-
251(b)(2)(A)(i) of the Balanced Budget and
return to the Secretary any funds received dents where the students physically attend
Emergency Deficit Control Act of 1985.
under this section that the Governor does school in-person shall not be eligible to re-
GENERAL PROVISIONS not award within 6 months of receiving such ceive a subgrant under paragraph (2).
EDUCATION STABILIZATION FUND funds and the Secretary shall reallocate such (C) A local educational agency that pro-
SEC. ll11. (a) ALLOCATIONS.— From the funds to the remaining States in accordance vides in-person instruction to at least some
amount made available under this heading in with subsection (b). students where the students physically at-
this Act to carry out the Education Sta- (e) REPORT.—A Governor receiving funds
tend school in-person but does not satisfy
bilization Fund, the Secretary shall first al- under this section shall submit a report to
the requirements in subparagraph (A) shall
locate— the Secretary, not later than 6 months after
have its allocation reduced on a pro rata
(1) not more than one half of 1 percent to receiving funding provided in this title, in
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basis as determined by the Governor.
the outlying areas on the basis of the terms such manner and with such subsequent fre- (d) PLAN CONTENTS.—A school reopening
and conditions for funding provided under quency as the Secretary may require, that plan submitted to a Governor under sub-
this heading in the Coronavirus Aid, Relief, provides a detailed accounting of the use of section (c)(2) shall include, in addition to
and Economic Security (CARES) Act (Public funds provided under this section. any other information necessary to meet the
Law 116–136); and ELEMENTARY AND SECONDARY SCHOOL criteria determined by the Governor—
(2) one-half of 1 percent for the Secretary EMERGENCY RELIEF FUND (1) A detailed timeline for when the local
of the Interior for programs operated or SEC. ll13. (a) GRANTS.—From funds re- educational agency will provide in-person in-
funded by the Bureau of Indian Education, served under section ll11(b)(2) of this title, struction, including the goals and criteria
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S4778 CONGRESSIONAL RECORD — SENATE August 4, 2020
used for providing full-time in-person in- dents with disabilities, English learners, mi- shortfalls that result in the disproportionate
struction to all students; grant students, students experiencing home- closure or denial of expansion of public char-
(2) A description of how many days of in- lessness, and children in foster care. ter schools that are otherwise meeting the
person instruction per calendar week the (2) A local educational agency that re- terms of their charter for academic achieve-
local educational agency plans to offer to ceives funds under subsection (c)(2) may use ment; or
students during the 2020–2021 school year; the funds for activities to carry out a com- (B) disproportionally reduce funding to
and prehensive school reopening plan as de- charter schools or otherwise increase fund-
(3) An assurance that the local educational scribed in this section, including: ing gaps between charter schools and other
agency will offer students as much in-person (A) Purchasing personal protective equip- public schools in the local educational agen-
instruction as is safe and practicable, con- ment, implementing flexible schedules to cy.
sistent with maintaining safe and contin- keep children in isolated groups, purchasing (2) Allocations of funding and services pro-
uous operations aligned with challenging box lunches so that children can eat in their vided from funds provided in this section to
state academic standards. classroom, purchasing physical barriers, pro- public charter schools are made on the same
(e) USES OF FUNDS.— viding additional transportation services, basis as is used for all public schools, con-
(1) A local educational agency or non-pub- repurposing existing school rooms and space, sistent with state law and in consultation
lic school that receives funds under sub- and improving ventilation systems. with charter school leaders.
section (c)(1) or section ll15 may use funds (B) Developing and implementation of pro- (h) REPORT.—A State receiving funds under
for any of the following: cedures and systems to improve the pre- this section shall submit a report to the Sec-
(A) Activities to support returning to in- paredness and response efforts of local edu- retary, not later than 6 months after receiv-
person instruction, including purchasing per- cational agencies or non-public schools, in- ing funding provided in this title, in such
sonal protective equipment, implementing cluding coordination with State, local, Trib- manner and with such subsequent frequency
flexible schedules to keep children in iso- al, and territorial public health departments, as the Secretary may require, that provides
lated groups, purchasing box lunches so that and other relevant agencies, to improve co- a detailed accounting of the use of funds pro-
children can eat in their classroom, pur- ordinated responses among such entities to vided under this section.
chasing physical barriers, providing addi- prevent, prepare for, and respond to (i) REALLOCATION.—A State shall return to
tional transportation services, repurposing coronavirus. the Secretary any funds received under this
existing school rooms and space, and improv- (C) Providing principals and others school section that the State does not award within
ing ventilation systems. leaders with the resources necessary to ad- 4 months of receiving such funds and the
(B) Developing and implementing proce- dress the needs of their individual schools. Secretary shall deposit such funds into the
dures and systems to improve the prepared- (D) Providing additional services to ad- general fund of the Treasury.
ness and response efforts of local educational dress the unique needs of low-income chil- (j) RULE OF CONSTRUCTION.—
agencies or non-public schools including co- dren or students, children with disabilities, (1) The receipt of any funds authorized or
ordination with State, local, Tribal, and ter- English learners, racial and ethnic minori- appropriated under this section, including
ritorial public health departments, and other ties, students experiencing homelessness, pursuant to section ll15 of this Act, by a
relevant agencies, to improve coordinated and foster care youth, including how out- nonprofit entity, or by any individual who
responses among such entities to prevent, reach and service delivery will meet the has been admitted or applied for admission
prepare for, and respond to coronavirus. needs of each population. to such entity (or any parent or guardian of
(C) Providing principals and other school (E) Training and professional development such individual), shall not be construed to
leaders with the resources necessary to ad- for staff of the local educational agency or render such entity or person a recipient of
dress the needs of their individual schools di- non-public school on sanitation and mini- Federal financial assistance for any purpose,
rectly related to coronavirus. mizing the spread of infectious diseases. nor shall any such person or entity be re-
(D) Providing additional services to ad- (F) Purchasing supplies to sanitize, clean, quired to make any alteration to its existing
dress the unique needs of low-income chil- and disinfect the facilities of a local edu- programs, facilities, or employment prac-
dren or students, children with disabilities, cational agency or non-public school, includ- tices except as required under this section.
English learners, racial and ethnic minori- ing buildings operated by such agency. (2) No State participating in any program
ties, students experiencing homelessness, (G) Purchasing educational technology (in- under this section, including pursuant to
and foster care youth, including how out- cluding hardware, software, and section ll15 of this Act, shall impose any
reach and service delivery will meet the connectivity) for students who are served by penalty or additional requirement upon, or
needs of each population. the local educational agency or non-public otherwise disadvantage, such entity or per-
(E) Training and professional development school that aids in regular and substantive son as a consequence or condition of its re-
for staff of the local educational agency or
educational interaction between students ceipt of such funds.
non-public school on sanitation and mini-
and their classroom instructors, including (3) No State participating in any program
mizing the spread of infectious diseases.
low-income students and students with dis- under this section shall authorize any person
(F) Purchasing supplies to sanitize, clean,
abilities, which may include assistive tech- or entity to use any funds authorized or ap-
and disinfect the facilities of a local edu-
nology or adaptive equipment. propriated under this section, including pur-
cational agency or non-public school, includ-
ing buildings operated by such agency.
(H) Expanding healthcare and other health suant to section ll15 of this Act, except as
services (including mental health services provided by subsection (e), nor shall any
(G) Planning for and coordinating during
and supports), including for children at risk such State impose any limits upon the use of
long-term closures, including for how to pro-
of abuse or neglect. any such funds except as provided by sub-
vide meals to eligible students, how to pro-
(I) Planning and implementing activities section (e).
vide technology for online learning to all
related to summer learning and supple- HIGHER EDUCATION EMERGENCY RELIEF FUND
students, how to provide guidance for car-
mental afterschool programs, including pro-
rying out requirements under the Individuals SEC. ll14. (a) IN GENERAL.—From funds
viding classroom instruction during the sum-
with Disabilities Education Act (20 U.S.C. reserved under section ll11(b)(3) of this
mer months and addressing the needs of low-
1401 et seq.) and how to ensure other edu- title the Secretary shall allocate amounts as
income students, students with disabilities,
cational services can continue to be provided follows:
English learners, migrant students, students
consistent with all Federal, State, and local (1) 85 percent to each institution of higher
experiencing homelessness, and children in
requirements. education described in section 101 or section
foster care.
(H) Purchasing educational technology (in- (f) STATE FUNDING.—A State may reserve 102(c) of the Higher Education Act of 1965 to
cluding hardware, software, and not more than 5 percent of the funds not oth- prevent, prepare for, and respond to
connectivity) for students who are served by erwise allocated under subsection (c) and coronavirus, by apportioning it—
the local educational agency or non-public section ll15 for administrative costs and (A) 90 percent according to the relative
school that aids in regular and substantive the remainder for emergency needs as deter- share of full-time equivalent enrollment of
educational interaction between students mined by the state educational agency to ad- Federal Pell Grant recipients who were not
and their classroom instructors, including dress issues responding to coronavirus, exclusively enrolled in distance education
low-income students and students with dis- which may be addressed through the use of courses prior to the coronavirus emergency;
abilities, which may include assistive tech- grants or contracts. and
nology or adaptive equipment. (g) ASSURANCES.—A State, state edu- (B) 10 percent according to the relative
(I) Expanding healthcare and other health cational agency, or local educational agency share of full-time equivalent enrollment of
services (including mental health services receiving funding under this section shall students who were not Federal Pell Grant re-
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and supports), including for children at risk provide assurances, as applicable, that: cipients who were not exclusively enrolled in
of abuse or neglect. (1) A State, State educational agency, or distance education courses prior to the
(J) Planning and implementing activities local educational agency will maintain and coronavirus emergency.
related to summer learning and supple- expand access to high-quality schools, in- (2) 10 percent for additional awards under
mental afterschool programs, including pro- cluding high-quality public charter schools, parts A and B of title III, parts A and B of
viding classroom instruction or online learn- and will not— title V, and subpart 4 of part A of title VII
ing during the summer months and address- (A) enact policies to close or prevent the of the Higher Education Act to address needs
ing the needs of low-income students, stu- expansion of such schools to address revenue directly related to coronavirus, that shall be
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4779
in addition to awards made in section tion to distance education, faculty and staff (b)(1) A non-public school that provides in-
ll14(a)(1) of this title, and allocated by the trainings, and payroll); and person instruction for at least 50 percent of
Secretary proportionally to such programs (2) provide financial aid grants to students its students where the students physically
based on the relative share of funding appro- (including students exclusively enrolled in attend school no less than 50 percent of each
priated to such programs in the Further Con- distance education), which may be used for school-week, as determined by the non-pub-
solidated Appropriations Act, 2020 (Public any component of the student’s cost of at- lic school prior to the coronavirus emer-
Law 116–94) and distributed to eligible insti- tendance or for emergency costs that arise gency, shall be eligible for the full amount of
tutions of higher education, except as other- due to coronavirus. assistance per student as prescribed under
wise provided in subparagraphs (A)–(D), on (d) SPECIAL PROVISIONS.— this section.
the basis of the formula described in section (1) A Historically Black College and Uni- (2) A non-public school that does not pro-
ll14(a)(1) of this title: versity or a Minority Serving Institution vide in-person instruction to any students
(A) Except as otherwise provided in sub- may use prior awards provided under titles where the students physically attend school
paragraph (B), for eligible institutions under III, V, and VII of the Higher Education Act in-person shall only be eligible for one-third
part B of title III and subpart 4 of part A of to prevent, prepare for, and respond to of the amount of assistance per student as
title VII of the Higher Education Act, the coronavirus. prescribed under this section.
Secretary shall allot to each eligible institu- (2) An institution of higher education re- (3) A non-public school that provides in-
tion an amount using the following formula: ceiving funds under section 18004 of division person instruction to at least some students
(i) 70 percent according to a ratio equiva- B of the CARES Act (Public Law 116–136) where the students physically attend school
lent to the number of Pell Grant recipients may use those funds under the terms and in-person but does not satisfy the require-
in attendance at such institution at the end conditions of section ll14(c) of this Act. ments in paragraph (1) shall have its amount
of the school year preceding the beginning of Amounts repurposed pursuant to this para- of assistance as prescribed under this section
the most recent fiscal year and the total graph that were previously designated by the reduced on a pro rata basis, which shall be
number of Pell Grant recipients at all such Congress as an emergency requirement pur- calculated using the same methodology as is
institutions; suant to the Balanced Budget and Emer- used under section ll13(c)(2)(C) of this
(ii) 20 percent according to a ratio equiva- gency Deficit Control Act of 1985 are des- title.
lent to the total number of students enrolled ignated by the Congress as an emergency re- (4) A Governor shall allocate not less than
at such institution at the end of the school quirement pursuant to section 251(b)(2)(A)(i) 50 percent of the funds reserved in this sec-
year preceding the beginning of that fiscal of the Balanced Budget and Emergency Def- tion to non-public schools within 30 days of
year and the number of students enrolled at icit Control Act of 1985. receiving an award from the Secretary and
all such institutions; and (3) No funds received by an institution of the remaining 50 percent not less than 4
(iii) 10 percent according to a ratio equiva- higher education under this section shall be months after receiving an award from the
lent to the total endowment size at all eligi- used to fund contractors for the provision of Secretary.
ble institutions at the end of the school year pre-enrollment recruitment activities; en- CONTINUED PAYMENT TO EMPLOYEES
preceding the beginning of that fiscal year dowments; or capital outlays associated with
and the total endowment size at such insti- SEC. ll16. A local educational agency,
facilities related to athletics, sectarian in- State, institution of higher education, or
tutions; struction, or religious worship.
(B) For eligible institutions under section other entity that receives funds under ‘‘Edu-
(4) An institution of higher education that cation Stabilization Fund’’, shall to the
326 of the Higher Education Act, the Sec- was required to remit payment to the Inter-
retary shall allot to each eligible institution greatest extent practicable, continue to pay
nal Revenue Service for the excise tax based its employees and contractors during the pe-
an amount in proportion to the award re- on investment income of private colleges and
ceived from funding for such institutions in riod of any disruptions or closures related to
universities under section 4968 of the Inter- coronavirus.
the Further Consolidated Appropriations nal Revenue Code of 1986 for tax year 2019
Act, 2020 (Public Law 116–94); shall have their allocation under this section DEFINITIONS
(C) For eligible institutions under section reduced by 50 percent and may only use SEC. ll17. Except as otherwise provided
316 of the Higher Education Act, the Sec- funds for activities described in paragraph in sections ll11–ll16 of this title, as used
retary shall allot funding according to the (c)(2). This paragraph shall not apply to an in such sections—
formula in section 316(d)(3) of the Higher institution of higher education designated by (1) the terms ‘‘elementary education’’ and
Education Act; and the Secretary as an eligible institution ‘‘secondary education’’ have the meaning
(D) Notwithstanding section 318(f) of the under section 448 of the Higher Education given such terms under State law;
Higher Education Act, for eligible institu- Act of 1965. (2) the term ‘‘institution of higher edu-
tions under section 318 of the Higher Edu- (e) REPORT.—An institution receiving cation’’ has the meaning given such term in
cation Act, the Secretary shall allot funding funds under this section shall submit a re- title I of the Higher Education Act of 1965 (20
according to the formula in section 318(e) of port to the Secretary, not later than 6 U.S.C. 1001 et seq.);
the Higher Education Act. months after receiving funding provided in (3) the term ‘‘Secretary’’ means the Sec-
(3) 5 percent for grants to institutions of this title, in such manner and with such sub- retary of Education;
higher education that the Secretary deter- sequent frequency as the Secretary may re- (4) the term ‘‘State’’ means each of the 50
mines, through an application process and quire, that provides a detailed accounting of States, the District of Columbia, and the
after allocating funds under paragraphs the use of funds provided under this section. Commonwealth of Puerto Rico;
ll14(a)(1) and (2) of this Act, have the (f) REALLOCATION.—Any funds allocated to (5) the term ‘‘cost of attendance’’ has the
greatest unmet needs related to coronavirus. an institution of higher education under this meaning given such term in section 472 of
In awarding funds to institutions of higher section on the basis of a formula described in the Higher Education Act of 1965.
education under this paragraph the Sec- subsection (a)(1) or (a)(2) but for which an in- (6) the term ‘‘Non-public school’’ means a
retary shall prioritize institutions of higher stitution does not apply for funding within non-public elementary and secondary school
education— 60 days of the publication of the notice invit- that (A) is accredited, licensed, or otherwise
(A) described under title I of the Higher ing applications, shall be reallocated to eli- operates in accordance with State law; and
Education Act of 1965 that were not eligible gible institutions that had submitted an ap- (B) was in existence prior to the date of the
to receive an award under section ll14(a)(1) plication by such date. qualifying emergency for which grants are
of this title, including institutions described ASSISTANCE TO NON-PUBLIC SCHOOLS awarded under this section;
in section 102(b) of the Higher Education Act (7) the term ‘‘public school’’ means a pub-
of 1965; and SEC. ll15. (a) FUNDS AVAILABILITY.—From
lic elementary or secondary school; and
(B) that otherwise demonstrate significant the payment provided by the Secretary
(8) any other term used that is defined in
needs related to coronavirus that were not under section ll13 of this title to a State
section 8101 of the Elementary and Sec-
addressed by funding allocated under sub- educational agency, the State educational
ondary Education Act of 1965 (20 U.S.C. 7801)
sections (a)(1) or (a)(2) of this section. agency shall reserve an amount of funds
shall have the meaning given the term in
(b) DISTRIBUTION.—The funds made avail- equal to the percentage of students enrolled
such section.
able to each institution under subsection in non-public elementary and secondary
schools in the State prior to the coronavirus MAINTENANCE OF EFFORT
(a)(1) shall be distributed by the Secretary
using the same systems as the Secretary emergency. Upon reserving funds under this SEC. ll18. A State’s application for funds
otherwise distributes funding to each insti- section, the Governor of the State shall to carry out sections ll12 or ll13 of this
award such funds equally to each non-public title shall include assurances that the State
SSpencer on DSK126QN23PROD with SENATE
tution under title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1001 et seq.). school accredited or otherwise located in and will maintain support for elementary and
(c) USES OF FUNDS.—An institution of high- licensed to operate in the State based on the secondary education, and State support for
er education receiving funds under this sec- number of low-income students enrolled in higher education (which shall include State
tion may use the funds received to: the non-public school as a share of all low-in- funding to institutions of higher education
(1) defray expenses associated with come students enrolled in non-public ele- and state need-based financial aid, and shall
coronavirus (including lost revenue, reim- mentary and secondary schools in the State not include support for capital projects or
bursement for expenses already incurred, prior to the coronavirus emergency, subject for research and development or tuition and
technology costs associated with a transi- to the requirements in subsection (b). fees paid by students) in fiscal years 2020 and
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S4780 CONGRESSIONAL RECORD — SENATE August 4, 2020
2021 at least at the proportional levels of withstanding section 412(b) of the General Act for youth workforce investment activi-
such State’s support for elementary and sec- Education Provisions Act (20 U.S.C. 1225): ties shall give priority to out-of-school
ondary education and for higher education Provided, That such amount is designated by youth and eligible youth who are members of
relative to such States overall spending in the Congress as being for an emergency re- one or more populations listed in section
fiscal year 2019. quirement pursuant to section 251(b)(2)(A)(i) 3(24) of such Act (29 U.S.C. 3102(24));
STUDENT AID ADMINISTRATION of the Balanced Budget and Emergency Def- (3) $150,000,000 for adult employment and
For an additional amount for ‘‘Student Aid icit Control Act of 1985. training activities; and
SEC. ll21. Funds made available in Public (4) $150,000,000 for the dislocated workers
Administration’’, $40,000,000, to remain avail-
Law 113–76 under the heading ‘‘Innovation assistance national reserve:
able through September 30, 2021, to prevent,
and Improvement’’ that were available for Provided further, That notwithstanding sec-
prepare for, and respond to coronavirus, do-
obligation through December 31, 2014 for the tion 128(a) of the Workforce Innovation and
mestically or internationally, for carrying
Investing in Innovation program pursuant to Opportunity Act (29 U.S.C. 3163(a)), the Gov-
out part D of title I, and subparts 1, 3, 9 and
the eighth and ninth provisos under that ernor may reserve up to 25 percent of the
10 of part A, and parts B, C, D, and E of title
heading in that Act are to remain available funds allotted under each of paragraphs (1),
IV of the HEA, and subpart 1 of part A of
through fiscal year 2021 for the liquidation of (2), and (3) under this heading in this Act for
title VII of the Public Health Service Act: statewide activities described in sections
valid obligations incurred in fiscal years 2014
Provided, That such amount is designated by 129(b) and 134(a) of such Act: Provided further,
or 2015: Provided, That such amount is des-
the Congress as being for an emergency re- That notwithstanding section 128(b)(4) of the
ignated by the Congress as being for an
quirement pursuant to section 251(b)(2)(A)(i) Workforce Innovation and Opportunity Act
emergency requirement pursuant to section
of the Balanced Budget and Emergency Def- (29 U.S.C. 3163(b)(4)), local areas may use not
251(b)(2)(A)(i) of the Balanced Budget and
icit Control Act of 1985. more than 20 percent of the funds allocated
Emergency Deficit Control Act of 1985.
INSTITUTE OF EDUCATION SCIENCES SEC. ll22. Funds made available in Public to the local area under each of paragraphs
For an additional amount for ‘‘Institute of Law 113–76 under the heading ‘‘Rehabilita- (1), (2), and (3) under this heading in this Act
Education Sciences’’, $65,000,000, to remain tion Services and Disability Research’’ that for administrative costs: Provided further,
available through September 30, 2021, to pre- were available for obligation through fiscal That such amount is designated by the Con-
vent, prepare for, and respond to year 2015 for the Automated Personalization gress as being for an emergency requirement
coronavirus, domestically or internation- Computing Project pursuant to the first four pursuant to section 251(b)(2)(A)(i) of the Bal-
ally, for carrying out the National Assess- provisos under that heading in that Act are anced Budget and Emergency Deficit Control
ment of Educational Progress Authorization to remain available through fiscal year 2021 Act of 1985.
Act (title III of Public Law 107–279): Provided, for the liquidation of valid obligations in- STATE UNEMPLOYMENT INSURANCE AND
That such amount is designated by the Con- curred in fiscal years 2014 or 2015: Provided, EMPLOYMENT SERVICE OPERATIONS
gress as being for an emergency requirement That such amount is designated by the Con- For an additional amount for ‘‘State Un-
pursuant to section 251(b)(2)(A)(i) of the Bal- gress as being for an emergency requirement employment Insurance and Employment
anced Budget and Emergency Deficit Control pursuant to section 251(b)(2)(A)(i) of the Bal- Service Operations’’, $1,504,000,000, to pre-
Act of 1985. anced Budget and Emergency Deficit Control vent, prepare for, and respond to
DEPARTMENTAL MANAGEMENT Act of 1985. coronavirus, domestically or internation-
PROGRAM ADMINISTRATION ally, which may be expended from the Em-
SA 2521. Mr. BLUNT submitted an ployment Security Administration Account
For an additional amount for ‘‘Program amendment intended to be proposed to in the Unemployment Trust Fund (‘‘The
Administration’’, $8,000,000, to remain avail- Trust Fund’’), of which:
able through September 30, 2021, to prevent, amendment SA 2499 proposed by Mr.
MCCONNELL to the bill S. 178, to con- (1) $1,115,500,000 from the Trust Fund to re-
prepare for, and respond to coronavirus, do- main available through December 31, 2021, is
mestically or internationally: Provided, That demn gross human rights violations of
for grants to States for the administration of
such amount is designated by the Congress ethnic Turkic Muslims in Xinjiang, and State unemployment insurance laws as au-
as being for an emergency requirement pur- calling for an end to arbitrary deten- thorized under title III of the Social Security
suant to section 251(b)(2)(A)(i) of the Bal- tion, torture, and harassment of these Act including grants to upgrade information
anced Budget and Emergency Deficit Control communities inside and outside China; technology to improve the administration
Act of 1985. which was ordered to lie on the table; and processing of unemployment compensa-
OFFICE OF INSPECTOR GENERAL as follows: tion claims: Provided, That, the Secretary
For an additional amount for ‘‘Office of In- At the appropriate place, insert the fol- may distribute such amounts, with respect
spector General’’, $7,000,000, to remain avail- lowing: to upgrading information technology, based
able through September 30, 2022, to prevent, on the condition and needs of the State in-
TITLE ll——DEPARTMENTS OF LABOR,
prepare for, and respond to coronavirus, do- formation technology systems or other ap-
HEALTH AND HUMAN SERVICES, AND
mestically or internationally, including for propriate factors, which may include the
EDUCATION, AND RELATED AGENCIES
salaries and expenses necessary for oversight ratio described under section 903(a)(2)(B) of
and audit of programs, grants, and projects Subtitle A—Labor the Social Security Act: Provided further,
funded in this title to respond to DEPARTMENT OF LABOR That funds provided for information tech-
coronavirus: Provided, That such amount is EMPLOYMENT AND TRAINING ADMINISTRATION nology under this heading in this Act shall
designated by the Congress as being for an TRAINING AND EMPLOYMENT SERVICES be available for obligation by the States
emergency requirement pursuant to section For an additional amount for ‘‘Training through September 30, 2027 and available for
251(b)(2)(A)(i) of the Balanced Budget and and Employment Services’’, $950,000,000, to expenditure by the States through Sep-
Emergency Deficit Control Act of 1985. remain available through September 30, 2022, tember 30, 2028;
GENERAL PROVISIONS to prevent, prepare for, and respond to (2) $38,500,000 from the Trust Fund is for
SEC. ll19. Funds made available in Public coronavirus, domestically or internation- national activities necessary to support the
Law 115–245 under the heading ‘‘National ally, which shall be used as follows: administration of the Federal-State unem-
Technical Institute for the Deaf’’ that were (1) $500,000,000 for grants to States for dis- ployment insurance system, to remain avail-
available for obligation through fiscal year located worker employment and training ac- able through September 30, 2021; and
2019, and where a valid obligation was in- tivities, including training services provided (3) $350,000,000 from the Trust Fund is for
curred in such fiscal year, are to remain through individual training accounts, incum- grants to States in accordance with section
available for obligation and expenditure by bent worker training, transitional jobs, cus- 6 of the Wagner-Peyser Act, to remain avail-
educational agencies or institutions through tomized training, on-the-job training, the able through June 30, 2021:
Provided further, That such amount is des-
fiscal year 2021, notwithstanding section identification of training providers including
ignated by the Congress as being for an
412(b) of the General Education Provisions online providers, and activities to facilitate
emergency requirement pursuant to section
Act (20 U.S.C. 1225): Provided, That such remote access to employment and training
251(b)(2)(A)(i) of the Balanced Budget and
amount is designated by the Congress as services through a one-stop center that lead
Emergency Deficit Control Act of 1985.
being for an emergency requirement pursu- to employment in high-skill, high-wage, or
ant to section 251(b)(2)(A)(i) of the Balanced in-demand industry sectors or occupations, DEPARTMENTAL MANAGEMENT
Budget and Emergency Deficit Control Act including health care, direct care, and manu- SALARIES AND EXPENSES
of 1985. facturing; (INCLUDING TRANSFER OF FUNDS)
SSpencer on DSK126QN23PROD with SENATE
SEC. ll20. Funds made available in Public (2) $150,000,000 for grants to States for For an additional amount for ‘‘Depart-
Law 115–245 under the heading ‘‘Gallaudet youth workforce investment activities: Pro- mental Management’’, $15,600,000, to remain
University’’ that were available for obliga- vided, That a local board shall not be re- available until September 30, 2022, to pre-
tion through fiscal year 2019, and where a quired to meet the requirements of section vent, prepare for, and respond to
valid obligation was incurred in such fiscal 129(a)(4)(A) of the Workforce Innovation and coronavirus, including to enforce worker
year, are to remain available for obligation Opportunity Act (29 U.S.C. 3164(a)(4)(A)): Pro- protection laws and regulations, and to over-
and expenditure by educational agencies or vided further, That each State and local area see and coordinate activities related to divi-
institutions through fiscal year 2021, not- receiving funds under this paragraph in this sion C, division D, division E, and division F
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4781
of Public Law 116–127, and activities under making awards through other grant or coop- of non-federally owned facilities to improve
Public Law 116–136: Provided, That the Sec- erative agreement mechanisms: Provided fur- preparedness and response capability at the
retary of Labor may transfer the amounts ther, That of the amount provided under this State, territorial, tribal, and local level: Pro-
provided under this heading in this Act as heading in this Act, up to $500,000,000 shall be vided further, That funds provided under this
necessary to ‘‘Employment and Training Ad- for activities to plan, prepare for, promote, heading in this Act may be used for purchase
ministration—Program Administration’’, distribute, administer, monitor, and track and insurance of official motor vehicles in
‘‘Employee Benefits Security Administra- seasonal influenza vaccines to ensure broad- foreign countries: Provided further, That of
tion’’, ‘‘Wage and Hour Division’’, Office of based distribution, access, and vaccine cov- the amount provided under this heading in
Workers’ Compensation Programs’’, ‘‘Occu- erage: Provided further, That funds provided this Act, $1,000,000 shall be to develop and
pational Safety and Health Administration’’, under this heading in this Act may reim- maintain a data system to be known as the
and ‘‘Mine Safety and Health Administra- burse CDC obligations incurred for Public Safety Officer Suicide Reporting Sys-
tion’’, to prevent, prepare for, and respond to coronavirus vaccine planning, preparation, tem, to collect data on the suicide incidence
coronavirus, including for enforcement, promotion, and distribution prior to the en- among public safety officers; and facilitate
oversight, and coordination activities in actment of this Act: Provided further, That the study of successful interventions to re-
those accounts: Provided further, That of the CDC shall report to the Committees on Ap- duce suicide among public safety officers:
amount provided under this heading in this propriations of the House of Representatives Provided further, That such system shall be
Act, $5,000,000, to remain available until ex- and the Senate within 60 days of enactment integrated into the National Violent Death
pended, shall be transferred to ‘‘Office of In- of this Act on an enhanced seasonal influ- Reporting System: Provided further, That
spector General’’, for oversight of activities enza vaccination strategy to include nation- amounts repurposed under this heading in
related to Public Law 116–127 and Public Law wide vaccination goals and specific actions this Act that were previously designated by
116–136 and for oversight activities supported that CDC will take to achieve such goals: the Congress as an emergency requirement
with funds appropriated to the Department Provided further, That of the amount pro- pursuant to the Balanced Budget and Emer-
of Labor to prevent, prepare for, and respond vided under this heading in this Act, not less gency Deficit Control Act of 1985 are des-
to coronavirus: Provided further, That 15 days than $200,000,000 shall be for global disease ignated by the Congress as an emergency re-
prior to transferring any funds pursuant to detection and emergency response to be co- quirement pursuant to section 251(b)(2)(A)(i)
the previous provisos under the heading in ordinated with funds provided in Public Law of the Balanced Budget and Emergency Def-
this Act, the Secretary shall provide to the 116–123 and Public Law 116–136 to global dis- icit Control Act of 1985: Provided further,
Committees on Appropriations of the House ease detection and emergency response to That such amount is designated by the Con-
of Representatives and the Senate an oper- support CDC-led global health security re- gress as being for an emergency requirement
ating plan describing the planned uses of sponse including CDC regional planning ef- pursuant to section 251(b)(2)(A)(i) of the Bal-
each amount proposed to be transferred: Pro- forts: Provided further, That CDC shall pro- anced Budget and Emergency Deficit Control
vided further, That such amount is des- vide an update to the global health security Act of 1985.
ignated by the Congress as being for an report required in Public Law 116-94 within
90 days of enactment of this Act that shall NATIONAL INSTITUTES OF HEALTH
emergency requirement pursuant to section
include a spend plan for funds appropriated NATIONAL HEART, LUNG, AND BLOOD INSTITUTE
251(b)(2)(A)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985. in the previous proviso and funds appro- For an additional amount for ‘‘National
priated for global disease detection and Heart, Lung, and Blood Institute’’,
GENERAL PROVISION emergency response in Public Law 116–123 $290,000,000, to remain available until Sep-
SEC. ll01. Paragraph (1) under the head- and Public Law 116–136: Provided further, tember 30, 2024, to prevent, prepare for, and
ing ‘‘Department of Labor—Veterans Em- That such spend plan shall describe the re- respond to coronavirus, domestically or
ployment and Training’’ of title I of division gions and countries that CDC will prioritize internationally: Provided, That such amount
A of Public Law 116–94 is amended by strik- and describe how CDC and USAID are coordi- is designated by the Congress as being for an
ing ‘‘obligation by the States through De- nating during planning and implementation: emergency requirement pursuant to section
cember 31, 2020’’ and inserting ‘‘expenditure Provided further, That within one year of en- 251(b)(2)(A)(i) of the Balanced Budget and
by the States through September 30, 2022’’: actment of this Act and every 365 days there- Emergency Deficit Control Act of 1985.
Provided, That such amount is designated by after until funds provided in the eighth pro-
the Congress as being for an emergency re- NATIONAL INSTITUTE OF DIABETES AND
viso in this paragraph and in Public Law 116–
quirement pursuant to section 251(b)(2)(A)(i) DIGESTIVE AND KIDNEY DISEASES
123 and Public Law 116–136 for global disease
of the Balanced Budget and Emergency Def- detection and emergency response are ex- For an additional amount for ‘‘National In-
icit Control Act of 1985. pended, CDC shall provide an evaluation out- stitute of Diabetes and Digestive and Kidney
Subtitle B—Health and Human Services lining how investments in countering global Diseases’’, $200,000,000, to remain available
health threats, as well as investments made until September 30, 2024, to prevent, prepare
DEPARTMENT OF HEALTH AND HUMAN
by region or country, as applicable, have im- for, and respond to coronavirus, domestically
SERVICES
proved infectious disease response capability or internationally: Provided, That such
CENTERS FOR DISEASE CONTROL AND amount is designated by the Congress as
in the region or country and additional
PREVENTION being for an emergency requirement pursu-
progress needed: Provided further, That of the
CDC-WIDE ACTIVITIES AND PROGRAM SUPPORT amount provided under this heading in this ant to section 251(b)(2)(A)(i) of the Balanced
For an additional amount for ‘‘CDC-Wide Act, not less than $200,000,000 shall be for Budget and Emergency Deficit Control Act
Activities and Program Support’’, public health data surveillance and analytics of 1985.
$3,400,000,000, to remain available until Sep- modernization to be coordinated with funds NATIONAL INSTITUTE OF ALLERGY AND
tember 30, 2024, to prevent, prepare for, and provided in Public Law 116–136 to support INFECTIOUS DISEASES
respond to coronavirus, domestically or CDC-led data modernization efforts to im-
For an additional amount for ‘‘National In-
internationally: Provided, That of the prove disease reporting across the country:
stitute of Allergy and Infectious Diseases’’,
amount provided under this heading in this Provided further, That CDC shall update the
$480,555,000, to remain available until Sep-
Act, not less than $1,500,000,000 shall be for public health data surveillance and IT sys-
tember 30, 2024, to prevent, prepare for, and
grants to or cooperative agreements with tems modernization report to the Commit-
respond to coronavirus, domestically or
States, localities, territories, tribes, tribal tees on Appropriations of the House of Rep-
internationally: Provided, That $55,000,000
organizations, urban Indian health organiza- resentatives and the Senate required by Pub-
shall be for Regional Biocontainment Lab-
tions, or health service providers to tribes, lic Law 116–94 within 180 days of enactment
oratories: Provided further, That funding pro-
including to carry out surveillance, epidemi- of this Act and every 365 days thereafter
vided in the previous proviso shall be divided
ology, laboratory capacity, infection con- until funds provided under this heading in
evenly among the eleven laboratories: Pro-
trol, immunization activity, mitigation, this Act and in Public Law 116–136 for public
vided further, That such amount is des-
communications, and other preparedness and health surveillance and data collection mod-
ignated by the Congress as being for an
response activities: Provided further, That ernization are expended: Provided further,
emergency requirement pursuant to section
the amounts included in the previous proviso That such report shall include an assessment
251(b)(2)(A)(i) of the Balanced Budget and
shall be allocated to States, localities, and of the progress State and territorial public
Emergency Deficit Control Act of 1985.
territories according to the formula that ap- health lab grantees have had in meeting data
plied to the Public Health Emergency Pre- modernization goals, an assessment of the EUNICE KENNEDY SHRIVER NATIONAL INSTITUTE
paredness cooperative agreement in fiscal progress CDC internal public health data OF CHILD HEALTH AND HUMAN DEVELOPMENT
year 2019: Provided further, That of the systems have had meeting data moderniza- For an additional amount for ‘‘Eunice Ken-
SSpencer on DSK126QN23PROD with SENATE
amount in the first proviso, not less than tion goals, and a detailed plan for CDC’s nedy Shriver National Institute of Child
$125,000,000 shall be allocated to tribes, tribal long-term data modernization goals, includ- Health and Human Development’’,
organizations, urban Indian health organiza- ing how CDC will receive near real-time data $172,680,000, to remain available until Sep-
tions, or health service providers to tribes: across the disease reporting platforms: Pro- tember 30, 2024, to prevent, prepare for, and
Provided further, That the Director of the vided further, That funds appropriated under respond to coronavirus, domestically or
Centers for Disease Control and Prevention this heading in this Act may be used for internationally: Provided, That such amount
(‘‘CDC’’) may satisfy the funding thresholds grants for the rent, lease, purchase, acquisi- is designated by the Congress as being for an
outlined in the first and third provisos by tion, construction, alteration, or renovation emergency requirement pursuant to section
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S4782 CONGRESSIONAL RECORD — SENATE August 4, 2020
251(b)(2)(A)(i) of the Balanced Budget and tribution of the virus, and vaccine hesitancy: prepare for, and respond to coronavirus, do-
Emergency Deficit Control Act of 1985. Provided further, That the Academies shall mestically and internationally: Provided,
NATIONAL INSTITUTE OF MENTAL HEALTH provide recommendations to the Advisory That amounts appropriated under this head-
Committee on Immunization Practices no ing in this Act shall be for Centers for Medi-
For an additional amount for ‘‘National In-
later than September 18, 2020: Provided fur- care and Medicaid Services (‘‘CMS’’) strike
stitute of Mental Health’’, $200,000,000, to re-
ther, That the agreement shall include an on- teams for resident and employee safety in
main available until September 30, 2024, to
going assessment of how vaccine distribution skilled nursing facilities and nursing facili-
prevent, prepare for, and respond to
meets equity criteria and recommendations ties, including activities to support clinical
coronavirus, domestically or internation-
for how vaccine distribution may better care, infection control, and staffing: Provided
ally: Provided, That such amount is des-
align with such criteria as applicable which further, That CMS shall provide a report to
ignated by the Congress as being for an
shall inform the Advisory Committee on Im- the Committees on Appropriations of the
emergency requirement pursuant to section
munization Practices prioritization rec- House of Representatives and the Senate 30
251(b)(2)(A)(i) of the Balanced Budget and
ommendations and vaccine distribution ac- days after enactment of this Act outlining a
Emergency Deficit Control Act of 1985.
tivities: Provided further, That such amount plan for executing strike team efforts, in-
NATIONAL INSTITUTE ON MINORITY HEALTH AND is designated by the Congress as being for an cluding how safety and infection control
HEALTH DISPARITIES emergency requirement pursuant to section measures will be assessed, how facilities will
For an additional amount for ‘‘National In- 251(b)(2)(A)(i) of the Balanced Budget and be chosen, and the frequency by which
stitute on Minority Health and Health Dis- Emergency Deficit Control Act of 1985. skilled nursing facilities and nursing facili-
parities’’, $64,334,000, to remain available SUBSTANCE ABUSE AND MENTAL HEALTH ties will be visited: Provided further, That
until September 30, 2024, to prevent, prepare SERVICES ADMINISTRATION CMS shall administer section 223 of Public
for, and respond to coronavirus, domestically HEALTH SURVEILLANCE AND PROGRAM SUPPORT
Law 113–93 and consult with the Substance
or internationally: Provided, That such Abuse and Mental Health Services Adminis-
amount is designated by the Congress as For an additional amount for ‘‘Heath Sur- tration, as necessary: Provided further, That
being for an emergency requirement pursu- veillance and Program Support’’, such amount is designated by the Congress
ant to section 251(b)(2)(A)(i) of the Balanced $4,500,000,000, to remain available through as being for an emergency requirement pur-
Budget and Emergency Deficit Control Act September 30, 2021, to prevent, prepare for, suant to section 251(b)(2)(A)(i) of the Bal-
of 1985. and respond to coronavirus, domestically or anced Budget and Emergency Deficit Control
internationally: Provided, That of the Act of 1985.
NATIONAL CENTER FOR ADVANCING
amount appropriated under this heading in
TRANSLATIONAL SCIENCES
this Act, $1,500,000,000 shall be for grants for ADMINISTRATION FOR CHILDREN AND FAMILIES
For an additional amount for ‘‘National the substance abuse prevention and treat- LOW INCOME HOME ENERGY ASSISTANCE
Center for Advancing Translational ment block grant program under subpart II For an additional amount for ‘‘Low Income
Sciences’’, $1,224,750,000, to remain available of part B of title XIX of the Public Health Home Energy Assistance’’, $1,500,000,000, to
until September 30, 2024, to prevent, prepare Service Act (‘‘PHS Act’’): Provided further, remain available through September 30, 2021,
for, and respond to coronavirus, domestically That of the amount appropriated under this to prevent, prepare for, or respond to
or internationally: Provided, That such heading in this Act, $2,000,000,000 shall be for coronavirus, domestically or internation-
amount is designated by the Congress as grants for the community mental health ally, which shall be for making payments
being for an emergency requirement pursu- services block grant program under subpart I under subsection (b) of section 2602 of the
ant to section 251(b)(2)(A)(i) of the Balanced of part B of title XIX of the PHS Act: Pro- Low-Income Home Energy Assistance Act of
Budget and Emergency Deficit Control Act vided further, That of the amount appro- 1981 (42 U.S.C. 8621 et seq.): Provided, That of
of 1985. priated in the previous proviso, the Assistant the amount provided under this heading in
OFFICE OF THE DIRECTOR Secretary is directed to provide no less than this Act, $375,000,000 shall be allocated as
(INCLUDING TRANSFER OF FUNDS)
50 percent of funds directly to facilities de- though the total appropriation for such pay-
fined in section 1913(c) of the PHS Act: Pro- ments for fiscal year 2020 was less than
For an additional amount for ‘‘Office of the vided further, That of the amount appro- $1,975,000,000: Provided further, That section
Director’’, $12,905,337,000, to remain available priated under this heading in this Act, not 2607(b)(2)(B) of such Act (42 U.S.C.
until September 30, 2024, to prevent, prepare less than $600,000,000 is available for Certified 8626(b)(2)(B)) shall not apply to funds made
for, and respond to coronavirus, domestically Community Behavioral Health Clinic Expan- available under this heading in this Act in
or internationally: Provided, That not less sion Grant program: Provided further, That of fiscal year 2020: Provided further, That such
than $10,100,000,000 of the amount provided the amount appropriated under this heading amount is designated by the Congress as
under this heading in this Act shall be for in this Act, not less than $50,000,000 shall be being for an emergency requirement pursu-
offsetting the costs related to reductions in available for suicide prevention programs: ant to section 251(b)(2)(A)(i) of the Balanced
lab productivity resulting from the Provided further, That of the amount appro- Budget and Emergency Deficit Control Act
coronavirus pandemic or public health meas- priated under this heading in this Act, of 1985.
ures related to the coronavirus pandemic: $100,000,000 shall be for activities and serv-
Provided further, That $1,325,337,000 of the PAYMENTS TO STATES FOR THE CHILD CARE AND
ices under Project AWARE: Provided further, DEVELOPMENT BLOCK GRANT
amount provided under this heading in this That of the amount appropriated under this
Act shall be to support additional scientific heading in this Act, not less than $250,000,000 For an additional amount for ‘‘Payments
research or the programs and platforms that is available for activities authorized under to States for the Child Care and Develop-
support research: Provided further, That section 501(o) of the PHS Act: Provided fur- ment Block Grant’’, $5,000,000,000, to remain
$1,240,000,000 of the amount provided under ther, That from within the amount appro- available through September 30, 2021, to pre-
this heading in this Act shall be provided to priated under this heading in this Act in the vent, prepare for, and respond to
accelerate the research and development of previous provisos, a total of not less than coronavirus, domestically or internation-
therapeutic interventions and vaccines in $15,000,000 shall be allocated to tribes, tribal ally, including for Federal administrative
partnership: Provided further, that no less organizations, urban Indian health organiza- expenses, which shall be used to supplement,
than $240,000,000 of the amount provided tions, or health or behavioral health service not supplant State, Territory, and Tribal
under this heading in this Act shall be for providers to tribes: Provided further, That general revenue funds for child care assist-
supplements to existing research training with respect to the amount appropriated ance for low-income families within the
awards for extensions and other costs: Pro- under this heading in this Act the Substance United States (including territories) without
vided further, That funds available under this Abuse and Mental Health Services Adminis- regard to requirements in sections
heading in this Act may be transferred to tration may waive requirements with respect 658E(c)(3)(D)–(E) or 658G of the Child Care
the accounts of Institutes and Centers of the to allowable activities, timelines, or report- and Development Block Grant Act: Provided,
NIH: Provided further, That this transfer au- ing requirements for the Substance Abuse That funds provided under this heading in
thority is in addition to any other transfer Prevention and Treatment Block Grant and this Act may be used to provide continued
authority available to the NIH: Provided fur- the Community Mental Health Services payments and assistance to child care pro-
ther, That the Director shall enter into an Block Grant as deemed necessary to facili- viders in the case of decreased enrollment or
agreement with the National Academies of tate a grantee’s response to coronavirus: Pro- closures related to coronavirus, and to as-
Sciences, Engineering, and Medicine (‘‘Acad- vided further, That such amount is des- sure they are able to remain open or reopen
emies’’) to develop a decision framework to ignated by the Congress as being for an as appropriate and applicable: Provided fur-
assist domestic and global health authorities ther, That States, Territories, and Tribes are
SSpencer on DSK126QN23PROD with SENATE
emergency requirement pursuant to section
in planning an equitable allocation of 251(b)(2)(A)(i) of the Balanced Budget and encouraged to place conditions on payments
coronavirus vaccines: Provided further, That Emergency Deficit Control Act of 1985. to child care providers that ensure that child
the Academies shall consider equity criteria care providers use a portion of funds received
which may include consideration of risk fac- CENTERS FOR MEDICARE & MEDICAID SERVICES to continue to pay the salaries and wages of
tors related to health disparities and health PROGRAM MANAGEMENT staff: Provided further, That the Secretary
care access, underlying health conditions, For an additional amount for ‘‘Program shall remind States that CCDBG State plans
racial and ethnic minorities, higher-risk oc- Management’’, $150,000,000, to remain avail- do not need to be amended prior to utilizing
cupations, first responders, geographic dis- able through September 30, 2023, to prevent, existing authorities in the CCDBG Act for
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4783
the purposes provided herein: Provided fur- BACK TO WORK CHILD CARE GRANTS Fund’’, $29,000,000,000, to remain available
ther, That States, Territories, and Tribes are For an additional amount for ‘‘Back to until September 30, 2024, to prevent, prepare
authorized to use funds appropriated under Work Child Care Grants’’, $10,000,000,000, to for, and respond to coronavirus, domestically
this heading in this Act to provide child care remain available through September 30, 2021, or internationally, including the develop-
assistance to health care sector employees, to prevent, prepare for, and respond to ment of necessary countermeasures and vac-
emergency responders, sanitation workers, coronavirus, domestically or internation- cines, prioritizing platform-based tech-
and other workers deemed essential during ally, which shall be for activities to carry nologies with U.S.-based manufacturing ca-
the response to coronavirus by public offi- out Back to Work Child Care Grants to pabilities, the purchase of vaccines, thera-
cials, without regard to the income eligi- qualified child care providers, for a transi- peutics, diagnostics, necessary medical sup-
bility requirements of section 658P(4) of such tion period of not more than 9 months to as- plies, as well as medical surge capacity, ad-
Act: Provided further, That funds appro- sist in paying for fixed costs and increased dressing blood supply chain, workforce mod-
priated under this heading in this Act shall operating expenses due to COVID–19, and to ernization, telehealth access and infrastruc-
be available to eligible child care providers reenroll children in an environment that ture, initial advanced manufacturing, novel
under section 658P(6) of the CCDBG Act, even supports the health and safety of children dispensing, enhancements to the U.S. Com-
if such providers were not receiving CCDBG and staff: Provided, That such amount is des- missioned Corps, and other preparedness and
assistance prior to the public health emer- ignated by the Congress as being for an response activities: Provided, That funds ap-
gency as a result of the coronavirus and any emergency requirement pursuant to section propriated under this paragraph in this Act
renewal of such declaration pursuant to such 251(b)(2)(A)(i) of the Balanced Budget and may be used to develop and demonstrate in-
section 319, for the purposes of cleaning and Emergency Deficit Control Act of 1985. novations and enhancements to manufac-
sanitation, and other activities necessary to ADMINISTRATION FOR COMMUNITY LIVING turing platforms to support such capabili-
maintain or resume the operation of pro- AGING AND DISABILITY SERVICES PROGRAMS ties: Provided further, That the Secretary of
grams: Provided further, That payments made For an additional amount for ‘‘Aging and Health and Human Services shall purchase
under this heading in this Act may be obli- Disability Services Programs’’, $75,000,000, to vaccines developed using funds made avail-
gated in this fiscal year or the succeeding remain available until September 30, 2021, to able under this paragraph in this Act to re-
two fiscal years: Provided further, That funds prevent, prepare for, and respond to spond to an outbreak or pandemic related to
appropriated under this heading in this Act coronavirus, domestically or internation- coronavirus in quantities determined by the
may be made available to restore amounts, ally: Provided, That of the amount made Secretary to be adequate to address the pub-
either directly or through reimbursement, available under this heading in this Act to lic health need: Provided further, That prod-
for obligations incurred to prevent, prepare prevent, prepare for, and respond to ucts purchased by the Federal government
for, and respond to coronavirus, domestically coronavirus, $58,000,000 shall be for activities with funds made available under this para-
or internationally, prior to the date of enact- authorized under the Older Americans Act of graph in this Act, including vaccines, thera-
ment of this Act: Provided further, That such 1965 (‘‘OAA’’), including $3,000,000 to imple- peutics, and diagnostics, shall be purchased
amount is designated by the Congress as ment a demonstration program on strategies in accordance with Federal Acquisition Reg-
being for an emergency requirement pursu- to recruit, retain, and advance direct care ulation guidance on fair and reasonable pric-
ant to section 251(b)(2)(A)(i) of the Balanced workers under section 411(a)(13) of the OAA; ing: Provided further, That the Secretary may
Budget and Emergency Deficit Control Act $35,000,000 for supportive services under part take such measures authorized under current
B of title III of the OAA; and $20,000,000 for law to ensure that vaccines, therapeutics,
of 1985.
support services for family caregivers under and diagnostics developed from funds pro-
CHILDREN AND FAMILIES SERVICES PROGRAMS part E of title III of the OAA: Provided fur- vided in this title will be affordable in the
ther, That of the amount made available commercial market: Provided further, That in
For an additional amount for ‘‘Children
under this heading in this Act, $10,000,000 carrying out the previous proviso, the Sec-
and Families Services Programs’’,
shall be available to support protection and retary shall not take actions that delay the
$190,000,000, to remain available through Sep-
advocacy systems, as described under sub- development of such products: Provided fur-
tember 30, 2021, to prevent, prepare for, and
title C of title I of the Developmental Dis- ther, That the Secretary shall ensure that
respond to coronavirus, domestically or
abilities Assistance and Bill of Rights Act of protections remain for individuals enrolled
internationally, including for Federal ad-
2000 (42 U.S.C. 15041 et seq.): Provided further, in group or individual health care coverage
ministrative expenses, which shall be used as with pre-existing conditions, including those
That of the amount made available under
follows: linked to coronavirus: Provided further, That
this heading in this Act, $2,000,000 shall be
(1) $65,000,000 for Family Violence Preven- products purchased with funds appropriated
for training, technical assistance, and re-
tion and Services grants as authorized by under this paragraph in this Act may, at the
source centers authorized under sections
section 303(a) and 303(b) of the Family Vio- discretion of the Secretary of Health and
202(a) and 411 of the OAA; training and tech-
lence and Prevention and Services Act with nical assistance to centers for independent Human Services, be deposited in the Stra-
such funds available to grantees without re- living as authorized under section 721(b) of tegic National Stockpile under section 319F–
gard to matching requirements under section the Rehabilitation Act of 1973 (except that 2 of the Public Health Service Act: Provided
306(c)(4) of such Act, of which $2,000,000 shall the reservations under paragraph (1) of such further, That of the amount appropriated
be for the National Domestic Violence Hot- section shall not apply); technical assistance under this paragraph in this Act, not more
line: Provided, That the Secretary may make by the Secretary of Health and Human Serv- than $2,000,000,000 shall be for the Strategic
such funds available for providing temporary ices (‘‘Secretary’’) to State Councils on De- National Stockpile under section 319F–2(a) of
housing and assistance to victims of family, velopmental Disabilities as authorized under such Act: Provided further, That funds appro-
domestic, and dating violence; subtitle B of title I of the Developmental priated under this paragraph in this Act may
(2) $75,000,000 for child welfare services as Disabilities Assistance and Bill of Rights Act be transferred to, and merged with, the fund
authorized by subpart 1 of part B of title IV of 2000 (except that the reservations under authorized by section 319F–4, the Covered
of the Social Security Act (other than sec- section 129(b) of such Act shall not apply); Counter measure Process Fund, of the Public
tions 426, 427, and 429 of such subpart), with technical assistance by the Secretary to pro- Health Service Act: Provided further, That of
such funds available to grantees without re- tection and advocacy systems as authorized the amount appropriated under this para-
gard to matching requirements under section under subtitle C of such title (except that graph in this Act, $20,000,000,000 shall be
424(a) of that Act or any applicable reduc- the limits under section 142(a)(6) of such Act available to the Biomedical Advanced Re-
tions in Federal financial participation shall not apply); and technical assistance to search and Development Authority for nec-
under section 424(f) of that Act; and University Centers for Excellence in Devel- essary expenses of manufacturing, produc-
(3) $50,000,000 for necessary expenses for opmental Disabilities Education, Research, tion, and purchase, at the discretion of the
community-based grants for the prevention and Service as authorized under section Secretary, of vaccines, therapeutics,
of child abuse and neglect under section 209 151(c) of such Act (except that the reserva- diagnostics, and small molecule active phar-
of the Child Abuse Prevention and Treat- tions under section 156(a)(3)(B) of such Act maceutical ingredients, including the devel-
ment Act, which the Secretary shall make shall not apply): Provided further, That of the opment, translation, and demonstration at
available without regard to section 203(b)(1) amount made available under this heading in scale of innovations in manufacturing plat-
and 204(4) of such Act: this Act, $5,000,000 shall be for activities au- forms: Provided further, That funds in the
thorized in the Assistive Technology Act of
Provided further, That funds appropriated previous proviso may be used for the con-
2004: Provided further, That such amount is
under this heading in this Act may be made struction or renovation of U.S.-based next
designated by the Congress as being for an
available to restore amounts, either directly generation manufacturing facilities, other
emergency requirement pursuant to section
or through reimbursement, for obligations than facilities owned by the United States
SSpencer on DSK126QN23PROD with SENATE
251(b)(2)(A)(i) of the Balanced Budget and
incurred to prevent, prepare for, and respond Emergency Deficit Control Act of 1985. Government: Provided further, That of the
to coronavirus, domestically or internation- amount provided under this heading in this
ally, prior to the date of enactment of this OFFICE OF THE SECRETARY Act, $6,000,000,000 shall be for activities to
Act: Provided further, That such amount is PUBLIC HEALTH AND SOCIAL SERVICES plan, prepare for, promote, distribute, ad-
designated by the Congress as being for an EMERGENCY FUND minister, monitor, and track coronavirus
emergency requirement pursuant to section (INCLUDING TRANSFER OF FUNDS) vaccines to ensure broad-based distribution,
251(b)(2)(A)(i) of the Balanced Budget and For an additional amount for ‘‘Public access, and vaccine coverage: Provided fur-
Emergency Deficit Control Act of 1985. Health and Social Services Emergency ther, That the Secretary shall coordinate
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S4784 CONGRESSIONAL RECORD — SENATE August 4, 2020
funding and activities outlined in the pre- subject to requirements under the National to conduct surveillance and contact tracing,
vious proviso through the Director of CDC: Environmental Policy Act of 1969 or the Na- support development of COVID–19 testing
Provided further, That the Secretary, through tional Historic Preservation Act of 1966: Pro- plans, and other related activities related to
the Director of CDC, shall report to the Com- vided further, That for the purposes of any COVID–19 testing: Provided, That of the
mittees on Appropriations of the House of funding provided for fiscal year 2020 for the amount appropriated under this paragraph in
Representatives and the Senate within 60 Health Centers Program pursuant to section this Act, not less than $15,000,000,000 shall be
days of enactment of this Act on a com- 330 of the PHS Act (42 U.S.C. 254b), maintain- for States, localities, territories, tribes, trib-
prehensive coronavirus vaccine distribution ing current health center capacity and staff- al organizations, urban Indian health organi-
strategy and spend plan that includes how ing levels during a public health emergency zations, or health service providers to tribes
existing infrastructure will be leveraged, en- as a result of the coronavirus and any re- for necessary expenses for testing, contact
hancements or new infrastructure that may newal of such declaration pursuant to such tracing, surveillance, containment, and miti-
be built, considerations for moving and stor- section 319 shall be deemed a cost of preven- gation, including support for workforce, epi-
ing vaccines, guidance for how States and tion, diagnosis, and treatment of demiology, use by employers, elementary
health care providers should prepare for, coronavirus: Provided further, That and secondary schools, child care facilities,
store, and administer vaccines, nationwide $250,000,000 of the funds appropriated under institutions of higher education, long-term
vaccination targets, funding that will be dis- this paragraph in this Act shall be trans- care facilities, or in other settings, scale up
tributed to States, how an informational ferred to ‘‘Health Resources and Services Ad- of testing by public health, academic, com-
campaign to both the public and health care ministration—Bureau of Health Workforce’’, mercial, and hospital laboratories, and com-
providers will be executed, and how the vac- to remain available until September 30, 2022, munity-based testing sites, health care fa-
cine distribution plan will focus efforts on for supplements to existing payments under cilities, and other entities engaged in
high risk, underserved, and minority popu- subsections 340E(a) and (h)(1) notwith- COVID–19 testing, and other related activi-
lations: Provided further, That such plan standing the cap imposed by subsection (h)(1) ties related to COVID–19 testing, contact
shall be updated and provided to the Com- and notwithstanding subsection (h)(6), for tracing, surveillance, containment, and miti-
mittees on Appropriations of the House of Children’s Hospitals Graduate Medical Edu- gation: Provided further, That the amount
Representatives and the Senate 90 days after cation, to prevent, prepare for, and respond identified in the preceding proviso shall be
submission of the first plan: Provided further, to coronavirus, domestically or internation- allocated to States, localities, and terri-
That the Secretary shall notify the Commit- ally: Provided further, That $5,000,000 of the tories according to the formula that applied
tees on Appropriations of the House of Rep- funds appropriated under this paragraph in to the Public Health Emergency Prepared-
resentatives and the Senate 2 days in ad- this Act shall be transferred to ‘‘Health Re- ness cooperative agreement in fiscal year
vance of any obligation in excess of sources and Services Administration—Health 2019: Provided further, That not less than
$50,000,000, including but not limited to con- Care Systems’’, to remain available until $500,000,000 shall be allocated in coordination
tracts and interagency agreements, from September 30, 2022, for activities under sec- with the Director of the Indian Health Serv-
funds provided in this paragraph in this Act: tions 1271 and 1273 of the PHS Act to improve ice, to tribes, tribal organizations, urban In-
Provided further, That funds appropriated the capacity of poison control centers to re- dian health organizations, or health service
under this paragraph in this Act may be used spond to increased calls: Provided further, providers to tribes: Provided further, That the
for the construction, alteration, or renova- That of the amount appropriated under this Secretary of Health and Human Services (re-
tion of non-federally owned facilities for the paragraph in this Act, $225,000,000 shall be for ferred to in this paragraph as the ‘‘Sec-
production of vaccines, therapeutics, grants or other mechanisms, to rural health retary’’) may satisfy the funding thresholds
diagnostics, and medical supplies where the clinics as defined in section 1861(aa)(2) of the outlined in the first and third provisos under
Secretary determines that such a contract is Social Security Act with such funds also this paragraph in this Act by making awards
necessary to secure sufficient amounts of available to such entities for building or con- through other grant or cooperative agree-
such supplies: Provided further, That the not struction of temporary structures, leasing of ment mechanisms: Provided further, That the
later than 30 days after enactment of this properties, and retrofitting facilities as nec- Governor or designee of each State, locality,
Act, and every 30 days thereafter until funds essary to support COVID–19 testing: Provided territory, tribe, or tribal organization re-
are expended, the Secretary shall report to further, That such funds shall be distributed ceiving funds pursuant to this title shall up-
the Committees on Appropriations of the using the procedures developed for the Pro- date their plans, as applicable, for COVID–19
House of Representatives and the Senate on vider Relief Fund authorized under the third testing and contact tracing submitted to the
uses of funding for Operation Warp Speed, paragraph under this heading in division B of Secretary pursuant to the Paycheck Protec-
detailing current obligations by Department the Coronavirus Aid, Relief, and Economic tion Program and Health Care Enhancement
or Agency, or component thereof broken out Security Act (Public Law 116–136); may be Act (Public Law 116–139) and submit such up-
by the coronavirus supplemental appropria- distributed using contracts or agreements dates to the Secretary not later than 60 days
tions Act that provided the source of funds: established for such program; and shall be after funds appropriated in this paragraph in
Provided further, That the plan outlined in subject to the process requirements applica- this Act have been awarded to such recipi-
the previous proviso shall include funding by ble to such program: Provided further, That ent: Provided further, That funds an entity
contract, grant, or other transaction in ex- the Secretary may specify a minimum receives from amounts described in the first
cess of $20,000,000 with a notation of which amount for each eligible entity accepting as- proviso in this paragraph may also be used
Department or Agency, and component sistance under the two previous provisos: for the rent, lease, purchase, acquisition,
thereof is managing the contract: Provided Provided further, That of the amount made construction, alteration, renovation, or
further, That such amount is designated by available under this heading in this Act to equipping of non-federally owned facilities to
the Congress as being for an emergency re- prevent, prepare for, and respond to improve coronavirus preparedness and re-
quirement pursuant to section 251(b)(2)(A)(i) coronavirus, $5,000,000, shall be available to sponse capability at the State and local
of the Balanced Budget and Emergency Def- implement section 747A of the PHS Act and level: Provided further, That such amount is
icit Control Act of 1985. section 747A(c) shall not apply to these designated by the Congress as being for an
For an additional amount for ‘‘Public funds: Provided further, That such amount is emergency requirement pursuant to section
Health and Social Services Emergency designated by the Congress as being for an 251(b)(2)(A)(i) of the Balanced Budget and
Fund’’, $8,085,000,000, to remain available emergency requirement pursuant to section Emergency Deficit Control Act of 1985.
until September 30, 2022, to prevent, prepare 251(b)(2)(A)(i) of the Balanced Budget and For an additional amount for ‘‘Public
for, and respond to coronavirus, domestically Emergency Deficit Control Act of 1985. Health and Social Services Emergency
or internationally: Provided, That For an additional amount for ‘‘Public Fund’’, $25,000,000,000, to remain available
$7,600,000,000 of the funds appropriated under Health and Social Services Emergency until expended, to prevent, prepare for, and
this paragraph in this Act shall be trans- Fund’’, $16,000,000,000, to remain available respond to coronavirus, domestically or
ferred to ‘‘Health Resources and Services Ad- until expended, to prevent, prepare for, and internationally, which shall be for necessary
ministration—Primary Health Care’’ for respond to coronavirus, domestically or expenses to reimburse, through grants or
grants, cooperative agreements, and other internationally, which shall be for necessary other mechanisms, eligible health care pro-
necessary expenses under the Health Centers expenses for testing, contact tracing, sur- viders for health care related expenses or
Program, as defined by section 330 of the veillance, containment, and mitigation to lost revenues that are attributable to
PHS Act, including funding for alteration, monitor and suppress COVID–19, including coronavirus: Provided, That these funds may
renovation, construction, equipment, and tests for both active infection and prior ex- not be used to reimburse expenses or losses
other capital improvement costs, and includ- posure, including molecular, antigen, and se- that have been reimbursed from other
ing funding to support, maintain, or increase rological tests, the manufacturing, procure- sources or that other sources are obligated
SSpencer on DSK126QN23PROD with SENATE
health center capacity and staffing levels, as ment and distribution of tests, testing equip- to reimburse: Provided further, That recipi-
necessary, to meet the needs of areas af- ment and testing supplies, including per- ents of payments under this paragraph shall
fected by coronavirus: Provided further, That sonal protective equipment needed for ad- submit reports and maintain documentation
sections 330(r)(2)(B), 330(e)(3), 330(e)(6)(A)(iii), ministering tests, the development and vali- as the Secretary determines are needed to
and 330(e)(6)(B)(iii) of the PHS Act shall not dation of rapid, molecular point-of-care ensure compliance with conditions that are
apply to funds in the preceding proviso: Pro- tests, and other tests, support for workforce, imposed by this paragraph for such pay-
vided further, That funding made available epidemiology, to scale up academic, commer- ments, and such reports and documentation
under this paragraph in this Act shall not be cial, public health, and hospital laboratories, shall be in such form, with such content, and
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4785
in such time as the Secretary may prescribe preparation for, or response to coronavirus, Services Emergency Fund’’, ‘‘Administration
for such purpose: Provided further, That ‘‘eli- domestically and internationally, subject to for Children and Families’’, ‘‘Administration
gible health care providers’’ means public prior notification to the Committees on Ap- for Community Living’’, and ‘‘National Insti-
entities, Medicare or Medicaid enrolled sup- propriations of the House of Representatives tutes of Health’’ to prevent, prepare for, and
pliers and providers, and such for-profit enti- and the Senate: Provided, That such individ- respond to coronavirus following consulta-
ties and not-for-profit entities not otherwise uals may not be deemed employees of the tion with the Office of Management and
described in this proviso as the Secretary United States for the purpose of any law ad- Budget: Provided, That the Committees on
may specify, within the United States (in- ministered by the Office of Personnel Man- Appropriations of the House of Representa-
cluding territories), that provide diagnoses, agement: Provided further, That the author- tives and the Senate shall be notified 10 days
testing, or care for individuals with possible ity made available pursuant to this section in advance of any such transfer: Provided fur-
or actual cases of COVID–19: Provided further, shall expire on September 30, 2024. ther, That, upon a determination that all or
That the Secretary of Health and Human SEC. ll12. (a) If services performed by an part of the funds transferred from an appro-
Services shall, on a rolling basis, review ap- employee during 2020 are determined by the priation by this subtitle are not necessary,
plications and make payments under this head of the agency to be primarily related to such amounts may be transferred back to
paragraph in this Act: Provided further, That preparation, prevention, or response to that appropriation: Provided further, That
funds appropriated under this paragraph in coronavirus, any premium pay for such serv- none of the funds made available by this sub-
this Act shall be available for building or ices shall be disregarded in calculating the title may be transferred pursuant to the au-
construction of temporary structures, leas- aggregate of such employee’s basic pay and thority in section 205 of division A of Public
ing of properties, medical supplies and equip- premium pay for purposes of a limitation Law 116–94 or section 241(a) of the PHS Act.
SEC. ll15. Of the funds appropriated by
ment including personal protective equip- under section 5547(a) of title 5, United States
this subtitle under the heading ‘‘Public
ment and testing supplies, increased work- Code, or under any other provision of law,
Health and Social Services Emergency
force and trainings, emergency operation whether such employee’s pay is paid on a bi-
Fund’’, up to $6,000,000 shall be transferred
centers, retrofitting facilities, and surge ca- weekly or calendar year basis. to, and merged with, funds made available
pacity: Provided further, That, in this para- (b) Any overtime pay for such services
under the heading ‘‘Office of the Secretary,
graph, the term ‘‘payment’’ means a pre-pay- shall be disregarded in calculating any an-
Office of Inspector General’’, and shall re-
ment, prospective payment, or retrospective nual limit on the amount of overtime pay main available until expended, for oversight
payment, as determined appropriate by the payable in a calendar or fiscal year. of activities supported with funds appro-
Secretary: Provided further, That payments (c) With regard to such services, any pay
priated to the Department of Health and
under this paragraph shall be made in con- that is disregarded under either subsection Human Services to prevent, prepare for, and
sideration of the most efficient payment sys- (a) or (b) shall be disregarded in calculating respond to coronavirus, domestically or
tems practicable to provide emergency pay- such employee’s aggregate pay for purposes internationally: Provided, That the Inspector
ment: Provided further, That to be eligible for of the limitation in section 5307 of such title General of the Department of Health and
a payment under this paragraph, an eligible 5. Human Services shall consult with the Com-
health care provider shall submit to the Sec- (d)(1) Pay that is disregarded under sub- mittees on Appropriations of the House of
retary of Health and Human Services an ap- section (a) or (b) shall not cause the aggre- Representatives and the Senate prior to obli-
plication that includes a statement justi- gate of the employee’s basic pay and pre- gating such funds: Provided further, That the
fying the need of the provider for the pay- mium pay for the applicable calendar year to transfer authority provided by this section is
ment and the eligible health care provider exceed the rate of basic pay payable for a po- in addition to any other transfer authority
shall have a valid tax identification number: sition at level II of the Executive Schedule provided by law.
Provided further, That, not later than 3 years under section 5313 of title 5, United States SEC. ll16. Funds made available in Public
after final payments are made under this Code, as in effect at the end of such calendar Law 113–235 to the accounts of the National
paragraph, the Office of Inspector General of year. Institutes of Health that were available for
the Department of Health and Human Serv- (2) For purposes of applying this subsection obligation through fiscal year 2015 are to re-
ices shall transmit a final report on audit to an employee who would otherwise be sub- main available through fiscal year 2021 for
findings with respect to this program to the ject to the premium pay limits established the liquidation of valid obligations incurred
Committees on Appropriations of the House under section 5547 of title 5, United States in fiscal year 2015: Provided, That such
of Representatives and the Senate: Provided Code, ‘‘premium pay’’ means the premium amount is designated by the Congress as
further, That nothing in this section limits pay paid under the provisions of law cited in being for an emergency requirement pursu-
the authority of the Inspector General or the section 5547(a). ant to section 251(b)(2)(A)(i) of the Balanced
Comptroller General to conduct audits of in- (3) For purposes of applying this subsection Budget and Emergency Deficit Control Act
terim payments at an earlier date: Provided to an employee under a premium pay limit of 1985.
further, That not later than 60 days after the established under an authority other than SEC. ll17. Section 675B(b)(3) of the Com-
date of enactment of this Act, the Secretary section 5547 of title 5, United States Code, munity Services Block Grant Act (42 U.S.C.
of Health and Human Services shall provide the agency responsible for administering 9906(b)(3)) shall not apply with respect to
a report to the Committees on Appropria- such limit shall determine what payments funds appropriated by the Coronavirus Aid,
tions of the House of Representatives and are considered premium pay. Relief, and Economic Security Act (Public
the Senate on obligation of funds, including (e) This section shall take effect as if en- Law 116–136) to carry out the Community
obligations to such eligible health care pro- acted on February 2, 2020. Services Block Grant Act (42 U.S.C. 9901 et
(f) If application of this section results in seq.): Provided, That the amounts repurposed
viders summarized by State of the payment
the payment of additional premium pay to a in this section that were previously des-
receipt: Provided further, That such reports
covered employee of a type that is normally ignated by the Congress as an emergency re-
shall be updated and submitted to such Com-
creditable as basic pay for retirement or any quirement pursuant to the Balanced Budget
mittees every 60 days until funds are ex-
other purpose, that additional pay shall and Emergency Deficit Control Act of 1985
pended: Provided further, That such amount
not— are designated by the Congress as an emer-
is designated by the Congress as being for an
(1) be considered to be basic pay of the cov- gency requirement pursuant to section
emergency requirement pursuant to section
ered employee for any purpose; or 251(b)(2)(A)(i) of the Balanced Budget and
251(b)(2)(A)(i) of the Balanced Budget and
(2) be used in computing a lump-sum pay- Emergency Deficit Control Act of 1985.
Emergency Deficit Control Act of 1985.
ment to the covered employee for accumu- Subtitle C—Education
GENERAL PROVISIONS lated and accrued annual leave under section DEPARTMENT OF EDUCATION
(INCLUDING TRANSFER OF FUNDS) 5551 or section 5552 of title 5, United States EDUCATION STABILIZATION FUND
SEC. ll10. Funds appropriated by this Code.
subtitle may be used by the Secretary of the SEC. ll13. The paragraph codified at 42 For an additional amount for ‘‘Education
Department of Health and Human Services U.S.C. 231 shall be applied in this and all Stabilization Fund’’, $105,000,000,000, to re-
to appoint, without regard to the provisions other fiscal years as though the phrase ‘‘cen- main available through September 30, 2021,
of sections 3309 through 3319 of title 5 of the tral services’’ referred to central services for to prevent, prepare for, and respond to
United States Code, candidates needed for any Federal agency, and this section shall be coronavirus, domestically or internation-
effective as if enacted on the date of enact- ally: Provided, That such amount is des-
positions to perform critical work relating
ignated by the Congress as being for an
to coronavirus for which— ment of such paragraph.
SEC. ll14. Funds appropriated by this emergency requirement pursuant to section
(1) public notice has been given; and
subtitle to the heading ‘‘Department of 251(b)(2)(A)(i) of the Balanced Budget and
(2) the Secretary of Health and Human
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Health and Human Services’’ except for the Emergency Deficit Control Act of 1985.
Services has determined that such a public
health threat exists. amounts specified in the third, and fourth GENERAL PROVISIONS
SEC. ll11. Funds made available by this paragraphs under the heading ‘‘Public EDUCATION STABILIZATION FUND
subtitle may be used to enter into contracts Health and Social Services Emergency SEC. ll21. (a) ALLOCATIONS.—From the
with individuals for the provision of personal Fund’’, may be transferred to, and merged amount made available under this heading in
services (as described in section 104 of part 37 with, other appropriation accounts under the this Act to carry out the Education Sta-
of title 48, Code of Federal Regulations (48 headings ‘‘Centers for Disease Control and bilization Fund, the Secretary shall first al-
CFR 37.104)) to support the prevention of, Prevention’’, ‘‘Public Health and Social locate—
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S4786 CONGRESSIONAL RECORD — SENATE August 4, 2020
(1) not more than one half of 1 percent to receiving funding provided in this title, in have its allocation reduced on a pro rata
the outlying areas on the basis of the terms such manner and with such subsequent fre- basis as determined by the Governor.
and conditions for funding provided under quency as the Secretary may require, that (d) PLAN CONTENTS.—A school reopening
this heading in the Coronavirus Aid, Relief, provides a detailed accounting of the use of plan submitted to a Governor under sub-
and Economic Security (CARES) Act (Public funds provided under this section. section (c)(2) shall include, in addition to
Law 116–136); and ELEMENTARY AND SECONDARY SCHOOL
any other information necessary to meet the
(2) one-half of 1 percent for the Secretary EMERGENCY RELIEF FUND
criteria determined by the Governor—
of the Interior for programs operated or (1) A detailed timeline for when the local
SEC. ll23. (a) GRANTS.—From funds re- educational agency will provide in-person in-
funded by the Bureau of Indian Education, served under section ll21(b)(2) of this title,
under the terms and conditions established struction, including the goals and criteria
the Secretary shall make supplemental ele- used for providing full-time in-person in-
for funding provided under this heading in mentary and secondary school emergency re-
the CARES Act (Public Law 116–136). struction to all students;
lief grants to each State educational agency (2) A description of how many days of in-
(b) RESERVATIONS.—After carrying out sub- with an approved application under section
section (a), the Secretary shall reserve the person instruction per calendar week the
18003 of division B of the CARES Act (Public local educational agency plans to offer to
remaining funds made available as follows: Law 116–136). The Secretary shall award
(1) 5 percent to carry out section ll22 of students during the 2020–2021 school year;
funds under this section to each State edu- and
this title. cational agency with an approved applica-
(2) 67 percent to carry out section ll23 of (3) An assurance that the local educational
tion within 15 calendar days of enactment of agency will offer students as much in-person
this title. this Act.
(3) 28 percent to carry out section ll24 of instruction as is safe and practicable, con-
(b) ALLOCATIONS TO STATES.—The amount sistent with maintaining safe and contin-
this title. of each grant under subsection (a) shall be uous operations aligned with challenging
GOVERNOR’S EMERGENCY EDUCATION RELIEF allocated by the Secretary to each State in state academic standards.
FUND the same proportion as each State received (e) USES OF FUNDS.—
SEC. ll22. (a) GRANTS.—From funds re- under part A of title I of the ESEA of 1965 in (1) A local educational agency or non-pub-
served under section ll21(b)(1) of this title, the most recent fiscal year. lic school that receives funds under sub-
the Secretary shall make supplemental (c) SUBGRANTS.—From the payment pro- section (c)(1) or section ll25 may use funds
Emergency Education Relief grants to the vided by the Secretary under subsection (b), for any of the following:
Governor of each State with an approved ap- the State educational agency shall provide (A) Activities to support returning to in-
plication under section 18002 of division B of services and assistance to local educational person instruction, including purchasing per-
the CARES Act (Public Law 116–136). The agencies and non-public schools, consistent sonal protective equipment, implementing
Secretary shall award funds under this sec- with the provisions of this subtitle. After flexible schedules to keep children in iso-
tion to the Governor of each State with an carrying out the reservation of funds in sec- lated groups, purchasing box lunches so that
approved application within 30 calendar days tion ll25 of this title, each State shall allo- children can eat in their classroom, pur-
of enactment of this Act. cate not less than 90 percent of the remain- chasing physical barriers, providing addi-
(b) ALLOCATIONS.—The amount of each ing grant funds awarded to the State under tional transportation services, repurposing
grant under subsection (a) shall be allocated this section as subgrants to local edu- existing school rooms and space, and improv-
by the Secretary to each State as follows: cational agencies (including charter schools ing ventilation systems.
(1) 60 percent on the basis of their relative that are local educational agencies) in the (B) Developing and implementing proce-
population of individuals aged 5 through 24. State in proportion to the amount of funds dures and systems to improve the prepared-
(2) 40 percent on the basis of their relative such local educational agencies and charter ness and response efforts of local educational
number of children counted under section schools that are local educational agencies agencies or non-public schools including co-
1124(c) of the Elementary and Secondary received under part A of title I of the ESEA ordination with State, local, Tribal, and ter-
Education Act of 1965 (referred to under this of 1965 in the most recent fiscal year. The ritorial public health departments, and other
heading as ‘‘ESEA’’). state educational agency shall make such relevant agencies, to improve coordinated
(c) USES OF FUNDS.—Grant funds awarded subgrants to local educational agencies as responses among such entities to prevent,
under subsection (b) may be used to— follows— prepare for, and respond to coronavirus.
(1) provide emergency support through (1) one-third of funds shall be awarded not (C) Providing principals and other school
grants to local educational agencies that the less than 15 calendar days after receiving an leaders with the resources necessary to ad-
State educational agency deems have been award from the Secretary under this section; dress the needs of their individual schools di-
most significantly impacted by coronavirus and rectly related to coronavirus.
to support the ability of such local edu- (2) the remaining two-thirds of funds shall (D) Providing additional services to ad-
cational agencies to continue to provide edu- be awarded only after the local educational dress the unique needs of low-income chil-
cational services to their students and to agency submits to the Governor and the dren or students, children with disabilities,
support the on-going functionality of the Governor approves a comprehensive school English learners, racial and ethnic minori-
local educational agency; reopening plan for the 2020–2021 school-year, ties, students experiencing homelessness,
(2) provide emergency support through based on criteria determined by the Gov- and foster care youth, including how out-
grants to institutions of higher education ernor in consultation with the state edu- reach and service delivery will meet the
serving students within the State that the cational agency (including criteria for the needs of each population.
Governor determines have been most signifi- Governor to carry out subparagraph (A) (E) Training and professional development
cantly impacted by coronavirus to support through (C)), that describes how the local for staff of the local educational agency or
the ability of such institutions to continue educational agency will safely reopen non-public school on sanitation and mini-
to provide educational services and support schools with the physical presence of stu- mizing the spread of infectious diseases.
the on-going functionality of the institution; dents, consistent with maintaining safe and (F) Purchasing supplies to sanitize, clean,
and continuous operations aligned with chal- and disinfect the facilities of a local edu-
(3) provide support to any other institution lenging state academic standards. The Gov- cational agency or non-public school, includ-
of higher education, local educational agen- ernor shall approve such plans within 30 days ing buildings operated by such agency.
cy, or education related entity within the after the plan is submitted, subject to the re- (G) Planning for and coordinating during
State that the Governor deems essential for quirements in subparagraphs (A) through long-term closures, including for how to pro-
carrying out emergency educational services (C). vide meals to eligible students, how to pro-
to students for authorized activities de- (A) A local educational agency that pro- vide technology for online learning to all
scribed in section ll23(e) of this title, the vides in-person instruction for at least 50 students, how to provide guidance for car-
ESEA of 1965, the Higher Education Act of percent of its students where the students rying out requirements under the Individuals
1965, the provision of child care and early physically attend school no less than 50 per- with Disabilities Education Act (20 U.S.C.
childhood education, social and emotional cent of each school-week, as it was defined 1401 et seq.) and how to ensure other edu-
support, career and technical education, by the local educational agency prior to the cational services can continue to be provided
adult education, and the protection of edu- coronavirus emergency, shall have its plan consistent with all Federal, State, and local
cation-related jobs. automatically approved. requirements.
(d) REALLOCATION.—Each Governor shall (B) A local educational agency that does (H) Purchasing educational technology (in-
return to the Secretary any funds received not provide in-person instruction to any stu- cluding hardware, software, and
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under this section that the Governor does dents where the students physically attend connectivity) for students who are served by
not award within 6 months of receiving such school in-person shall not be eligible to re- the local educational agency or non-public
funds and the Secretary shall reallocate such ceive a subgrant under paragraph (2). school that aids in regular and substantive
funds to the remaining States in accordance (C) A local educational agency that pro- educational interaction between students
with subsection (b). vides in-person instruction to at least some and their classroom instructors, including
(e) REPORT.—A Governor receiving funds students where the students physically at- low-income students and students with dis-
under this section shall submit a report to tend school in-person but does not satisfy abilities, which may include assistive tech-
the Secretary, not later than 6 months after the requirements in subparagraph (A) shall nology or adaptive equipment.
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