[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4150 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4150
To establish a grant program for shuttered minor league baseball clubs,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 24, 2021
Ms. Matsui (for herself, Mr. McKinley, Ms. Wild, Mr. Welch, Mr.
McGovern, and Ms. Slotkin) introduced the following bill; which was
referred to the Committee on Small Business, and in addition to the
Committee on Ways and Means, 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 establish a grant program for shuttered minor league baseball clubs,
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 ``Minor League Baseball Relief Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Small Business Administration.
(2) Covered grants.--The term ``covered grant'' means a
grant made under this Act to an eligible entity.
(3) Covered law.--The term ``covered law'' means--
(A) the Coronavirus Preparedness and Response
Supplemental Appropriations Act, 2020 (Public Law 116-
123; 134 Stat. 146);
(B) the Families First Coronavirus Response Act
(Public Law 116-127; 134 Stat. 177);
(C) the CARES Act (Public Law 116-136; 134 Stat.
281);
(D) the Paycheck Protection Program and Health Care
Enhancement Act (Public Law 116-139; 134 Stat. 620);
(E) the Consolidated Appropriations Act, 2021
(Public Law 116-260); or
(F) the American Rescue Plan Act of 2021 (Public
Law 117-2).
(4) Covered mortgage obligation; covered rent obligation;
covered utility payment; covered worker protection
expenditure.--The terms ``covered mortgage obligation'',
``covered rent obligation'', ``covered utility payment'', and
``covered worker protection expenditure'' have the meanings
given those terms in section 7A(a) of the Small Business Act
(15 U.S.C. 636m(a)).
(5) Eligible entity.--The term ``eligible entity'' means
any Minor League Baseball Club or Independent Professional
Baseball Club that meets the following requirements:
(A) The Minor League Baseball Club or Independent
Professional Baseball Club was operating in the
ordinary course of business on February 29, 2020.
(B) The gross revenues of the Minor League Baseball
Club or Independent Professional Baseball Club in
calendar year 2020 were not more than 25 percent of the
gross revenues of the Minor League Baseball Club or
Independent Professional Baseball Club in calendar year
2019, or, if the gross revenues of the Minor League
Baseball Club or Independent Professional Baseball Club
were negatively impacted by a natural disaster or
weather disruption in 2019, not more than 25 percent of
the average annual gross revenues of the Minor League
Baseball Club or Independent Professional Baseball Club
over the 3-year period from 2017 through 2019, as
determined by the Administrator using the accrual
method of accounting and excluding any amounts received
any amounts received under the CARES Act (15 U.S.C.
9001 et seq.), an amendment to such Act, the
Consolidated Appropriations Act, 2021 (Public Law 116-
260), or any subsequent COVID Relief package.
(C) At the time the Minor League Baseball Club or
Independent Professional Baseball Club submits the
certification required under section 3(c), the Minor
League Baseball Club or Independent Professional
Baseball Club is open, or intends to reopen, for the
primary purpose of conducting baseball games.
(D) The Minor League Baseball Club or Independent
Professional Baseball Club is not majority owned,
directly or indirectly, by Major League Baseball, a
Major League Baseball Club, or one or more persons who
have a greater than 10-percent ownership interest in a
Major League Baseball Club.
(6) Independent professional baseball club.--The term
``Independent Professional Baseball Club'' means a professional
baseball team, including a professional baseball team that is a
corporation, limited liability company, or a partnership or
operated as a sole proprietorship, that--
(A) operates for profit or as a nonprofit
organization;
(B) is located in the United States; and
(C) as of February 29, 2020, was a member of--
(i) the American Association of
Professional Baseball;
(ii) the Atlantic League of Professional
Baseball;
(iii) the Canadian American Association of
Professional Baseball;
(iv) the Empire Professional Baseball
League;
(v) the Frontier League;
(vi) the Pacific Association of
Professional Baseball Clubs;
(vii) the Pecos League of Professional
Baseball Clubs;
(viii) the United Shore Professional
Baseball League; or
(ix) the Western League.
(7) Minor league baseball club.--The term ``Minor League
Baseball Club'' means a professional baseball team, including a
professional baseball team that is a corporation, limited
liability company, or a partnership or operated as a sole
proprietorship, that--
(A) operates for profit or as a nonprofit
organization;
(B) is located in the United States; and
(C)(i) as of February 29, 2020, was a member of a
league that was a member of the National Association of
Professional Baseball Leagues, Inc.; or
(ii) has been offered and is operating or has
agreed to operate under--
(I) a Player Development License granted by
MLB Professional Development Leagues, LLC; or
(II) a license granted by Appalachian
League, Inc.
(8) Payroll costs.--The term ``payroll costs'' has the
meaning given the term in section 7(a)(36)(A) of the Small
Business Act (15 U.S.C. 636(a)(36)).
SEC. 3. GRANTS FOR CERTAIN MINOR LEAGUE BASEBALL CLUBS.
(a) In General.--The Administrator shall, subject to the
availability of appropriations, make covered grants to eligible
entities in accordance with this section.
(b) Authority.--The Associate Administrator for the Office of
Disaster Assistance of the Small Business Administration shall
coordinate and formulate policies relating to the administration of
covered grants.
(c) Certification of Need.--An eligible entity applying for a
covered grant shall submit a good faith certification that the
uncertainty of current economic conditions makes necessary the grant to
support the ongoing operations of the eligible entity.
(d) Multiple Business Entities.--The Administrator shall treat each
eligible entity as an independent, non-affiliated entity for the
purposes of this section.
(e) Grant Terms.--
(1) Number of grants.--
(A) In general.--Except as provided in subparagraph
(B), an eligible entity may receive only 1 covered
grant.
(B) Supplemental grant.--The Administrator may make
a second covered grant to an eligible entity if, as of
June 30, 2021, the gross revenues of such eligible
entity for calendar year 2021 as of such date are not
more than 30 percent of the gross revenues of such
eligible entity for the corresponding period of 2019,
or, if the gross revenues of the eligible entity were
negatively impacted by a natural disaster or weather
disruption in 2019, not more than 30 percent of the
average gross revenues of the eligible entity during
the first 6 months of 2017, 2018, and 2019, due to the
COVID-19 pandemic.
(2) Amount.--
(A) In general.--Except as provided in subparagraph
(B), a covered grant shall be in an amount equal to the
lesser of--
(i) the amount equal to 45 percent of the
gross revenues of the eligible entity for 2019,
or, if the gross revenues of the eligible
entity were negatively impacted by a natural
disaster or weather disruption in 2019, equal
to 45 percent of the average annual gross
revenues of the eligible entity over the 3-year
period from 2016 through 2018, which shall
include the gross revenues of all subsidiaries
and other related entities that are
consolidated with the gross revenues of the
eligible entity in a financial statement
prepared in accordance with generally accepted
accounting principles for such eligible entity
for such year; or
(ii) $10,000,000.
(B) Supplement grant amount.--A covered grant made
pursuant to paragraph (1)(B) shall be in an amount
equal to 50 percent of the first covered grant received
by the eligible entity.
(3) Grant aggregate maximum.--The total amount of covered
grants received by an eligible entity may not exceed
$10,000,000.
(4) Use of funds.--
(A) Timing.--
(i) Expenses incurred.--
(I) In general.--Except as provided
in subclause (II), amounts received
under a covered grant may only be used
for expenses incurred during the period
beginning on March 1, 2020, and ending
on December 31, 2021.
(II) Extension for supplemental
grants.--If an eligible entity receives
a grant under paragraph (1)(B), amounts
received under a covered grant may be
used for costs incurred during the
period beginning on March 1, 2020, and
ending September 30, 2022.
(ii) Expenditure.--
(I) In general.--Except as provided
in subclause (II), an eligible entity
shall return to the Administrator any
amounts received under a covered grant
that are not expended on or before the
date that is 1 year after the date of
disbursement of the covered grant.
(II) Extension for supplemental
grants.--If an eligible entity receives
a grant under paragraph (1)(B), the
eligible entity shall return to the
Administrator any amounts received
under any covered grant that are not
expended on or before the date that is
18 months after the date of
disbursement of the first covered grant
received by the eligible entity.
(B) Allowable expenses.--An eligible entity may use
amounts received under a covered grant for--
(i) payroll costs;
(ii) payments on any covered rent
obligation or other obligation to a public
entity from whom the primary venue of the
eligible entity is leased or licensed;
(iii) any covered utility payment;
(iv) payments of interest or principal due
on any covered mortgage obligation;
(v) payments of interest or principal due
on any indebtedness or debt instrument incurred
in the ordinary course of business that is a
liability of the eligible entity and was in
place or incurred prior to February 15, 2020;
(vi) covered worker protection
expenditures;
(vii) payments made to independent
contractors, as reported on Form 1099-MISC, not
to exceed a total of $100,000 in annual
compensation for any individual employee of an
independent contractor; and
(viii) other ordinary and necessary
business expenses, including--
(I) maintenance expenses;
(II) administrative costs,
including fees and licensing costs;
(III) State and local taxes and
fees;
(IV) operating leases in effect as
of February 15, 2020;
(V) payments required for insurance
on any insurance policy;
(VI) settling existing debts with
vendors; and
(VII) advertising, production,
transportation, and capital
expenditures relating to the primary
venue of the eligible entity or events
held at such venue, except that a grant
under this section may not be used
primarily for such expenditures.
(C) Prohibited expenses.--An eligible entity may
not use amounts received under a grant under this
section--
(i) to purchase real estate;
(ii) for payments of interest or principal
for loans originated after February 15, 2020;
(iii) to invest or re-lend funds;
(iv) for contributions or expenditures to,
or on behalf of, any political party, party
committee or candidate for elective office; or
(v) for any other use as may be reasonably
prohibited by the Administrator.
(f) Increased Oversight.--The Administrator shall increase
oversight of eligible entities receiving covered grants, which may
include the following:
(1) Documentation.--Additional documentation requirements
that are consistent with the eligibility and other requirements
under this section, including requiring an eligible entity that
receives a grant under this section to retain records that
document compliance with the requirements for grants under this
section--
(A) with respect to employment records, for the 4-
year period following receipt of the grant; and
(B) with respect to other records, for the 3-year
period following receipt of the grant.
(2) Reviews of use.--Reviews of the use of the grant
proceeds by an eligible entity to ensure the compliance with
requirements established under this section and by the
Administrator, including that the Administrator may--
(A) review and audit grants under this section; and
(B) in the case of fraud of other material
noncompliance with respect to a grant under this
section--
(i) require repayment of misspent funds; or
(ii) pursue legal action to collect funds.
(g) Oversight and Audit Plan.--
(1) In general.--Not later than 45 days after the date of
enactment of this Act, the Administrator shall submit to the
Committee on Small Business and Entrepreneurship of the Senate
and the Committee on Small Business of the House of
Representatives an audit plan that details--
(A) the policies and procedures of the
Administrator for conducting oversight and audits of
covered grants; and
(B) the metrics that the Administrator shall use to
determine which covered grants will be audited pursuant
to subsection (f).
(2) Report.--Not later than 60 days after the date of
enactment of this Act, and each month thereafter until the date
that is 1 year after the date on which all amounts appropriated
to make covered grants have been expended, the Administrator
shall submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report on the
oversight and audit activities of the Administrator under this
subsection, which shall include--
(A) the total number of covered grants approved and
disbursed;
(B) the total amount of covered grants received by
each eligible entity;
(C) the number of active investigations and audits
of covered grants;
(D) the number of completed reviews and audits of
covered grants, including a description of any findings
of fraud or other material non-compliance; and
(E) any substantial changes made to the oversight
and audit plan submitted under paragraph (1).
(h) Tax Treatment of Covered Loans.--
(1) In general.--For the purposes of the Internal Revenue
Code of 1986--
(A) no covered grant shall be included in the gross
income of the eligible entity that receives such
covered grant;
(B) no deduction shall be denied, no tax attribute
shall be reduced, and no basis increase shall be
denied, by reason of the exclusion from gross income
provided by subparagraph (A); and
(C) in the case of a partnership or S corporation
that receives such a covered grant--
(i) any amount excluded from income by
reason of subparagraph (A) shall be treated as
tax exempt income for purposes of sections 705
and 1366 of the Internal Revenue Code of 1986;
and
(ii) the Secretary of the Treasury (or the
Secretary's delegate) shall prescribe rules for
determining a partner's distributive share of
any amount described in clause (i) for purposes
of section 705 of the Internal Revenue Code of
1986.
(2) Applicability.--Paragraph (1) shall apply to taxable
years ending after the date of enactment of this Act.
(i) Funding.--Notwithstanding any provision of covered law, from
any funds appropriated under such a law that have not been obligated as
of the date of enactment of this Act and are no longer being used to
carry out the activities under such a law, the remaining funds or
$550,000,000, whichever is greater, but in any case not more than
$550,000,000, shall be allocated to the Administrator to carry out this
section, of which not more than $50,000,000 shall be allocated to
Independent Professional Baseball Clubs.
<all>