[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7371 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7371
To amend the Relief for Workers Affected by Coronavirus Act to extend
Federal Pandemic Unemployment Compensation and improve short-time
compensation programs and agreements, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 25, 2020
Mr. Pocan (for himself, Mr. Connolly, Mr. Courtney, Mr. Garcia of
Illinois, Ms. Jayapal, Mr. Khanna, Mr. Levin of Michigan, Mr.
Lowenthal, Mrs. Napolitano, Ms. Norton, Mr. Raskin, Ms. Schakowsky, Mr.
Thompson of Mississippi, and Ms. Tlaib) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addition
to the Committees on Financial Services, and Small Business, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend the Relief for Workers Affected by Coronavirus Act to extend
Federal Pandemic Unemployment Compensation and improve short-time
compensation programs and agreements, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rebuilding Main Street Act of
2020''.
SEC. 2. EXTENSION OF FEDERAL PANDEMIC UNEMPLOYMENT COMPENSATION.
(a) In General.--Section 2104(e)(2) of the Relief for Workers
Affected by Coronavirus Act (contained in subtitle A of title II of
division A of the CARES Act (Public Law 116-136)) is amended by
striking ``July 31, 2020'' and inserting ``December 31, 2020''.
(b) Application to Short-Time Compensation Programs and
Agreements.--Section 2104(i)(2) of the Relief for Workers Affected by
Coronavirus Act (contained in subtitle A of title II of division A of
the CARES Act (Public Law 116-136)) is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(E) short-time compensation under section 2108 or
2109.''.
SEC. 3. IMPROVEMENTS TO FINANCING OF SHORT-TIME COMPENSATION.
(a) States With Programs in Law.--Section 2108 of the Relief for
Workers Affected by Coronavirus Act (contained in subtitle A of title
II of division A of the CARES Act (Public Law 116-136)) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``paragraph (3)''
and inserting ``paragraphs (3), (4), and (5)''; and
(B) by striking paragraph (3) and inserting the
following:
``(3) Limitations on payments.--No payments shall be made
to a State under this section for short-time compensation paid
to an individual by the State during a benefit year in excess
of 26 times the amount of regular compensation (including
dependents' allowances) under the State law payable to such
individual for a week of total unemployment.
``(4) Seasonal, temporary, or intermittent employment.--
Payments may be made to a State under this section for benefits
paid to an individual by the State under a short-time
compensation program if such individual is employed by the
participating employer on a seasonal, temporary, or
intermittent basis, and any reduction in such individual's
hours is due to circumstances related to the coronavirus
disease 2019 (COVID-19) pandemic.
``(5) Authority for states with programs in law to
temporarily adjust limits on workweek reduction and permitting
rehiring.--
``(A) In general.--For purposes of making payments
under this section, in the case of a State whose State
law provides for the payment of short-time compensation
under a short-time compensation program that meets the
definition of such a program under section 3306(v) of
the Internal Revenue Code of 1986--
``(i) paragraph (2) of such section 3306(v)
shall be applied by inserting `or the employer
rehires employees or brings back employees from
furlough at reduced hours' after `layoffs';
``(ii) paragraph (3) of such section
3306(v) shall be applied by striking `60
percent' and inserting `80 percent'; and
``(iii) paragraph (7) of such section
3306(v) shall be applied by inserting `, or who
is rehired or brought back from furlough at
reduced hours under the program,' after `under
the program'.
``(B) Limitation.--The modifications to such
section 3306(v) under clauses (i), (ii), and (iii) of
subparagraph (A) shall only apply during the period for
which this section is applicable.'';
(2) by redesignating subsections (d), (e), and (f) as
subsections (e), (f), and (g), respectively; and
(3) by inserting after subsection (c) the following:
``(d) Restriction on Charging of Federally Reimbursed Short-Time
Compensation Benefits.--Beginning on the date of enactment of this
subsection, a State receiving payments under this section may not
increase experience rated State unemployment taxes, or require
reimbursement for benefit costs, due to short-time compensation
benefits paid on or before December 31, 2020.''.
(b) Federal-State Agreements.--
(1) Application of section 3306 of the internal revenue
code of 1986.--Section 2109(b)(1) of the Relief for Workers
Affected by Coronavirus Act (contained in subtitle A of title
II of division A of the CARES Act (Public Law 116-136)) is
amended by inserting before the period at the end ``except that
paragraphs (2), (3), and (7) of such section 3306(v) shall be
applied under an agreement under this section in the same
manner as such paragraphs are applied under section 2108
pursuant to clauses (i), (ii), and (iii) of paragraph (5)(A) of
such section''.
(2) Expansion of financing for short-time compensation.--
(A) In general.--Section 2109 of the Relief for
Workers Affected by Coronavirus Act (contained in
subtitle A of title II of division A of the CARES Act
(Public Law 116-136)) is amended--
(i) in subsection (b), by striking
paragraphs (2) and (3) and inserting the
following:
``(2) Limitations on plans.--A short-time compensation plan
approved by a State shall not permit the payment of short-time
compensation to an individual by the State during a benefit
year in excess of 26 times the amount of regular compensation
(including dependents' allowances) under the State law payable
to such individual for a week of total unemployment.
``(3) Seasonal, temporary, or intermittent employment.--
Payments may be made to a State under this section for benefits
paid to an individual by the State under a short-time
compensation plan if such individual is employed by the
participating employer on a seasonal, temporary, or
intermittent basis, and any reduction in such individual's
hours is due to circumstances related to the coronavirus
disease 2019 (COVID-19) pandemic.''; and
(ii) in subsection (c)(1)(A), by striking
``one-half'' and inserting ``100 percent''.
(B) Effective date.--The amendments made by
subparagraph (A) shall take effect as if included in
the enactment of such section 2109.
(3) Restriction on charging of federally reimbursed short-
time compensation benefits.--Section 2109 of the Relief for
Workers Affected by Coronavirus Act (contained in subtitle A of
title II of division A of the CARES Act (Public Law 116-136))
is amended--
(A) by redesignating subsection (f) as subsection
(g); and
(B) by inserting after subsection (e) the
following:
``(f) Restriction on Charging of Federally Reimbursed Short-Time
Compensation Benefits.--Beginning on the date of enactment of this
subsection, a State receiving payments under this section may not
increase experience rated State unemployment taxes, or require
reimbursement for benefit costs, due to short-time compensation
benefits paid on or before December 31, 2020.''.
(c) Federal Website and Common Application for Short-Time
Compensation.--Title IX of the Social Security Act (42 U.S.C. 1101 et
seq.) is amended by adding at the end the following:
``SEC. 912. SHORT-TIME COMPENSATION COMMON APPLICATION AND WEBSITE.
``(a) Federal Short-Time Compensation Common Application.--
``(1) In general.--Not later than 30 days after the
enactment of this section, the Secretary of Labor shall
establish and maintain an internet-based Federal short-time
compensation common application through which an employer may
apply to the short-time compensation program of any State
(including multiple States at the same time) that has adopted
such common application.
``(2) Use of model language.--The Secretary of Labor shall
establish the common application under paragraph (1) based on
the model language developed pursuant to section 2165 of the
Middle Class Tax Relief and Job Creation Act of 2012.
``(b) Federal Short-Time Compensation Website.--Not later than 30
days after the enactment of this section, the Secretary of Labor shall
establish and maintain a publicly available internet website--
``(1) through which an employer may obtain information
about any short-time compensation program available in the
State in which the employer operates, including a program under
sections 2108 through 2110 of the Relief for Workers Affected
by Coronavirus Act (contained in subtitle A of title II of
division A of the CARES Act); and
``(2) that provides information about and access to the
Federal short-time compensation common application, as
established in subsection (a).''.
SEC. 4. IMPROVEMENTS TO GRANTS FOR SHORT-TIME COMPENSATION PROGRAMS.
(a) Existing Grants.--Section 2110 of the Relief for Workers
Affected by Coronavirus Act (contained in subtitle A of title II of
division A of the CARES Act (Public Law 116-136)) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting ``or enter into
an agreement under section 2109 to provide'' after
``enact''; and
(B) in paragraph (3), by striking subparagraph (B)
and inserting the following:
``(B) Clarification.--A State administering a
short-time compensation program that does not meet the
definition of a short-time compensation program as
defined in subsection (i)(2) shall not be eligible to
receive a grant under this section until such time as
the State provides for payments under a short-time
compensation program that meets such definition.'';
(2) in subsection (b), by striking paragraph (1) and
inserting the following:
``(1) Amount.--
``(A) Implementation and improvement.--Subject to
subparagraph (C), the maximum amount available for
making grants under subsections (a) (1) and (2) to a
State that administers a short-time compensation
program shall be equal to the amount obtained by
multiplying $150,000,000 (less the amount used by the
Secretary under subsection (e)) by the same ratio as
would apply under subsection (a)(2)(B) of section 903
of the Social Security Act (42 U.S.C. 1103) for
purposes of determining such State's share of any
excess amount (as described in subsection (a)(1) of
such section) that would have been subject to transfer
to State accounts, as of October 1, 2019, under the
provisions of subsection (a) of such section.'';
(3) in subsection (c)--
(A) in paragraph (3), by inserting ``or agreement''
after ``the State law''; and
(B) in paragraph (4)(B), by inserting ``(other than
pursuant to an agreement under section 2109)'' after
``short-time compensation program'';
(4) in subsection (g), by striking ``$100,000,000'' and
inserting ``$200,000,000''; and
(5) in subsection (i)(2), by inserting before the period at
the end ``, except that paragraphs (2), (3), and (7) of such
section 3306(v) shall be applied under this section in the same
manner as such paragraphs are applied under section 2108
pursuant to clauses (i), (ii), and (iii) of paragraph (5)(A) of
such section''.
(b) Additional Funding for States Who Streamline Program
Guidelines.--Section 2110 of the Relief for Workers Affected by
Coronavirus Act (contained in subtitle A of title II of division A of
the CARES Act (Public Law 116-136)) is amended--
(1) in subsection (a)--
(A) by redesignating paragraph (3) as paragraph
(4);
(B) by inserting after paragraph (2) the following:
``(3) For streamlining program guidelines.--The Secretary
shall award grants to States that are eligible and submit plans
for a grant under paragraph (1) for such States that streamline
the short-time compensation program guidelines of the State,
such as--
``(A) allowing an employer to provide an
eligibility certification on behalf of the employees of
the employer on a weekly basis;
``(B) allowing an employer to rehire an employee or
bring back an employee from furlough at reduced hours,
pursuant to the modifications described in section
2108(a)(5)(A) and section 2109(b)(1);
``(C) relaxing any State limitation on short-time
compensation hour reduction to match the maximum
percentage permitted under section 3306(v)(3) of the
Internal Revenue Code of 1986, pursuant to the
modifications described in section 2108(a)(5)(A) and
section 2109(b)(1); or
``(D) accepting employer applications submitted
using the federal short-time compensation common
application established under this Act.''; and
(C) in paragraph (4)(A), as redesignated by
subparagraph (A), by striking ``and (2)'' and inserting
``, (2), and (3)'';
(2) in subsection (b)--
(A) in paragraph (1), as amended by subsection
(a)(2), by adding at the end the following:
``(B) Streamlining program guidelines.--Subject to
subparagraph (C), the maximum amount available for
making grants under subsection (a)(3) to a State shall
be equal to the amount obtained by multiplying
$50,000,000 (less the amount used by the Secretary
under subsection (e)) by the same ratio as would apply
under subsection (a)(2)(B) of section 903 of the Social
Security Act (42 U.S.C. 1103) for purposes of
determining such State's share of any excess amount (as
described in subsection (a)(1) of such section) that
would have been subject to transfer to State accounts,
as of October 1, 2019, under the provisions of
subsection (a) of such section.
``(C) Special rule for federal-state agreements.--
In no case may the total of all grants made under this
section to a State administering a short-time
compensation program pursuant to an agreement under
section 2109 exceed $1,000,000.''; and
(B) by striking paragraph (2) and inserting the
following:
``(2) Amount available for different grants.--
``(A) Grants for implementation or improved
administration or for promotion and enrollment.--Of the
maximum incentive payment determined under paragraph
(1)(A) with respect to a State--
``(i) one-third shall be available for a
grant under subsection (a)(1); and
``(ii) two-thirds shall be available for a
grant under subsection (a)(2).
``(B) Grants for streamlining program guidelines.--
Of the maximum incentive payment determined under
paragraph (1)(B) with respect to a State, 100 percent
shall be available for a grant under subsection
(a)(3).'';
(3) in subsection (c)--
(A) in paragraph (1), by striking ``or (2)'' and
inserting ``, (2), or (3)'';
(B) in paragraph (2), by striking ``or (2) (or
both)'' and inserting ``, (2), or (3) (or each
paragraph)''; and
(C) in paragraph (4), in the matter preceding
subparagraph (A), by striking ``or (2)'' and inserting
``, (2), or (3)'';
(4) in subsection (d), in the matter preceding paragraph
(1), by inserting ``, the streamlining of guidelines for such
programs,'' after ``administration of such programs''; and
(5) in subsection (f), in the matter preceding paragraph
(1), by striking ``or (2)'' and inserting ``, (2), or (3)''.
SEC. 5. REBUILDING MAIN STREET GRANT PROGRAM.
(a) In General.--Not later than 30 days after the date of enactment
of this Act, the Secretary shall establish a program to provide grants
to any eligible employer to help ensure that such employer remains in
operation while its employees continue working reduced hours pursuant
to a short-time compensation program.
(b) Application.--Any eligible employer seeking to receive a grant
under this section shall submit an application to the Secretary at such
time, in such manner, and containing such information as the Secretary
may require.
(c) Amount of Grant.--
(1) In general.--For each calendar quarter ending after the
date on which the application has been approved for an eligible
employer under subsection (b) and ending before January 1,
2022, the Secretary shall provide a grant to such employer in
an amount equal to the applicable percentage of the eligible
costs paid or incurred by such employer for the preceding
calendar quarter.
(2) Applicable percentage.--
(A) In general.--For purposes of this subsection,
the applicable percentage for any calendar quarter
shall be the amount equal to--
(i) in the case of an eligible employer
described in subclause (I) of subsection
(f)(1)(A)(i), 50 percent, as reduced (but not
below zero) by 2 percentage points for each
percentage point by which the reduction in
gross receipts of the eligible employer for
such quarter is less than 50 percent; or
(ii) in the case of an eligible employer
described in subclause (II) of such subsection,
50 percent.
(B) Reduction in gross receipts.--
(i) In general.--With respect to any
calendar quarter, the reduction in gross
receipts for such quarter is the amount
(expressed as a percentage) equal to the
quotient of--
(I) gross receipts of the eligible
employer for such quarter; and
(II) gross receipts of the eligible
employer for the same calendar quarter
during the preceding calendar year.
(ii) New employers.--In the case of an
eligible employer which was not carrying on a
trade or business (or, in the case of an
organization exempt from taxation under section
501(a) of the Internal Revenue Code of 1986,
which was not carrying on activities related to
the purpose or function constituting the basis
of the organization's exemption under such
section) during the same calendar quarter in
the preceding calendar year, clause (i)(II)
shall be applied by substituting ``the first
calendar quarter of 2020'' for ``the same
calendar quarter during the preceding calendar
year''.
(3) Exclusion for failure to comply with public health
orders.--A grant shall not be provided to an eligible employer
for any calendar quarter in which such employer has been
determined by a State or local government agency with
appropriate jurisdiction over such employer to have failed to
carry out its operations in compliance with any applicable
State or local public health order or requirement and has
provided notice to the Secretary of such failure to comply with
such order or requirement.
(4) Limitation.--The cumulative amount of any grants which
may be provided to an eligible employer under this section for
all calendar quarters shall not exceed $300,000.
(5) Information regarding eligible costs.--For purposes of
determining the amount of the grant to be provided for each
calendar quarter under this subsection, an eligible employer
shall provide the Secretary such information as is deemed
necessary by the Secretary.
(d) No Reduction in Loan Forgiveness for Paycheck Protection
Loans.--Section 1106(d) of the CARES Act (Public Law 116-136), as
amended by section 3(b)(2) of the Paycheck Protection Program
Flexibility Act of 2020 (Public Law 116-142), is amended by adding at
the end the following new paragraph:
``(9) No reduction in forgiveness based on work sharing
plan.--The amount of forgiveness of a covered loan made to an
eligible recipient under this section shall not be reduced
based on a reduction relating to salary and wages under
paragraph (3) if the eligible recipient elected to provide
reduced work hours to full-time equivalent employees of the
eligible recipient pursuant to a short term compensation
program, as defined in section 3306(v) of the Internal Revenue
Code of 1986, including any short-time compensation plan
approved by a State pursuant to section 2109(b)(1).''.
(e) No Reimbursement.--Any expense paid by an eligible employer
with proceeds from a loan made under section 7(a)(36) of the Small
Business (15 U.S.C. 636(a)(36)) shall not be eligible for reimbursement
under the program established under this section.
(f) Definitions.--For purposes of this section--
(1) Eligible employer.--
(A) In general.--The term ``eligible employer''
means any entity (including any organization exempt
from taxation under section 501(a) of the Internal
Revenue Code of 1986)--
(i)(I) for which the reduction in gross
receipts (as determined under subsection
(c)(2)(B)) for the most recent calendar quarter
ending before the date on which such entity
submitted an application under subsection (b)
is not less than 25 percent; or
(II) which--
(aa) had less than 20 employees
during the period described in clause
(i) of subparagraph (B);
(bb) had less than $1,500,000 in
annual gross receipts (as determined
under clause (ii) of such
subparagraph); and
(cc) as part of their application
under subsection (b), has made a good
faith certification that the
uncertainty of current economic
conditions makes necessary the grant
request to support the ongoing
operations of such entity;
(ii) which has elected to provide reduced
work hours to employees pursuant to a short-
time compensation program; and
(iii) which is not--
(I) a hedge fund or a private
equity fund, as defined in section
13(h) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1851(h));
(II) a corporation the stock of
which is publicly traded; or
(III) a publicly traded partnership
(as defined in section 7704(b) of the
Internal Revenue Code of 1986).
(B) Rules for certain employers.--
(i) Employees.--The period described in
this clause shall be, at the election of the
entity--
(I) the period beginning on
February 15, 2019, and ending on June
30, 2019; or
(II) the period beginning on
January 1, 2020, and ending on February
29, 2020.
(ii) Gross receipts.--
(I) In general.--For purposes of
subparagraph (A)(i)(II)(bb), annual
gross receipts shall be determined
based on information provided for the
most recent taxable year for which a
tax return has been filed by the entity
(including, in the case of an
organization exempt from taxation under
section 501(a) of the Internal Revenue
Code of 1986, a return required under
section 6033 of such Code).
(II) New employers.--With respect
to the taxable year described in
subclause (I), in the case of an entity
which was not carrying on a trade or
business (or, in the case of an
organization exempt from taxation under
section 501(a) of the Internal Revenue
Code of 1986, which was not carrying on
activities related to the purpose or
function constituting the basis of the
organization's exemption under such
section) during the entirety of such
taxable year, annual gross receipts
shall be determined on an annualized
basis.
(III) Organization exempt from
filing.--For purposes of subclause (I),
in the case of an organization exempt
from taxation under section 501(a) of
the Internal Revenue Code of 1986 which
is exempt from filing a return pursuant
to section 6033(a) of such Code, such
organization may submit to the
Secretary (in such form and manner as
is deemed appropriate by the Secretary)
any information required to determine
the annual gross receipts of such
organization for purposes of
subparagraph (A)(i)(II)(bb).
(C) Aggregation rule.--All persons which are
treated as a single employer under subsections (a) and
(b) of section 52 of the Internal Revenue Code of 1986
shall be treated as a single eligible employer for
purposes of this section.
(2) Eligible costs.--
(A) In general.--The term ``eligible costs'' means
the payment or accrual, in the ordinary course of the
eligible employer's trade or business, of--
(i) any covered mortgage obligation,
covered rent obligation, or covered utility
payment; and
(ii) any costs and expenses necessary to
maintain, reopen, and reconfigure the
operations of the eligible employer, including
costs and expenses related to cleaning,
equipment, and other similar expenditures, as
defined by the Secretary through such
regulations or other guidance as may be
appropriate or necessary to carry out the
purposes of this section.
(B) Exception.--For purposes of subparagraph
(A)(i), the term ``eligible costs'' shall not include
the prepayment of any obligation for a period in excess
of a month unless the payment for such period is
customarily due in advance.
(C) Application of definitions.--For purposes of
subparagraph (A)(i), the terms ``covered mortgage
obligation'', ``covered rent obligation'', and
``covered utility payment'' shall each have the same
meaning as when used in section 1106 of the CARES Act.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or the Secretary's delegate.
(4) Short-time compensation program.--The term ``short-time
compensation program'' has the same meaning given such term
under section 3306(v) of the Internal Revenue Code of 1986,
including any short-time compensation plan approved by a State
pursuant to section 2109(b)(1) of the Relief for Workers
Affected by Coronavirus Act (contained in subtitle A of title
II of division A of the CARES Act (Public Law 116-136)).
(g) Reports.--Beginning 90 days after the date of enactment of this
Act, the Secretary shall submit a quarterly report to the Committees on
Appropriations of the House of Representatives and the Senate, as well
as the Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the Senate,
regarding the operations of the grant program established under this
section, including--
(1) information regarding the size and geographic location
of eligible employers that have received grants; and
(2) demographic information with respect to the principal
owners of such eligible employers.
(h) Public Awareness Campaign.--The Secretary, in coordination with
the Secretary of Labor, the Secretary of Commerce, and the
Administrator of the Small Business Administration, shall conduct a
public awareness campaign, to be carried out through the Minority
Business Development Agency of the Department of Commerce and women's
business centers (as described in section 29 of the Small Business Act
(15 U.S.C. 656)), to provide information and outreach to help
underserved businesses participate in short-time compensation programs
and the program established under this section.
(i) Appropriations.--Out of any money in the Treasury not otherwise
appropriated, there shall be appropriated such sums as are necessary to
carry out the purposes of this section, to remain available until
expended.
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