Regular Session 2019-2020 House Bill 2537 P.N. 3814

PRINTER'S NO. 3814

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2537

Session of

2020

INTRODUCED BY GROVE, WARNER, RYAN, EMRICK, KAUFFMAN, KEEFER,

GLEIM, DeLUCA, B. MILLER, THOMAS, ZIMMERMAN AND MOUL,

MAY 21, 2020

REFERRED TO COMMITTEE ON FINANCE, MAY 21, 2020

AN ACT

Amending the act of April 9, 1929 (P.L.343, No.176), entitled

"An act relating to the finances of the State government;

providing for cancer control, prevention and research, for

ambulatory surgical center data collection, for the Joint

Underwriting Association, for entertainment business

financial management firms, for private dam financial

assurance and for reinstatement of item vetoes; providing for

the settlement, assessment, collection, and lien of taxes,

bonus, and all other accounts due the Commonwealth, the

collection and recovery of fees and other money or property

due or belonging to the Commonwealth, or any agency thereof,

including escheated property and the proceeds of its sale,

the custody and disbursement or other disposition of funds

and securities belonging to or in the possession of the

Commonwealth, and the settlement of claims against the

Commonwealth, the resettlement of accounts and appeals to the

courts, refunds of moneys erroneously paid to the

Commonwealth, auditing the accounts of the Commonwealth and

all agencies thereof, of all public officers collecting

moneys payable to the Commonwealth, or any agency thereof,

and all receipts of appropriations from the Commonwealth,

authorizing the Commonwealth to issue tax anticipation notes

to defray current expenses, implementing the provisions of

section 7(a) of Article VIII of the Constitution of

Pennsylvania authorizing and restricting the incurring of

certain debt and imposing penalties; affecting every

department, board, commission, and officer of the State

government, every political subdivision of the State, and

certain officers of such subdivisions, every person,

association, and corporation required to pay, assess, or

collect taxes, or to make returns or reports under the laws

imposing taxes for State purposes, or to pay license fees or

other moneys to the Commonwealth, or any agency thereof,

every State depository and every debtor or creditor of the

Commonwealth," providing for coronavirus aid, relief and

emergency response; and establishing the Coronavirus Aid,

Relief and Emergency Response Fund.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of April 9, 1929 (P.L.343, No.176), known

as The Fiscal Code, is amended to read:

ARTICLE I-B

CORONAVIRUS AID, RELIEF AND EMERGENCY RESPONSE

Section 101-B. Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"CARES Act." The Coronavirus Aid, Relief, and Economic

Security Act (Public Law 116-136, 134 Stat. 281).

"Commonwealth agency." An agency or department of the

executive branch.

"COVID-19 pandemic." The novel coronavirus as identified in

the proclamation of disaster emergency issued by the Governor on

March 6, 2020, published at 50 Pa.B. 1644 (March 21, 2020), and

any renewal of the state of disaster emergency.

"Department." The Treasury Department of the Commonwealth.

"Eligible entity." A Commonwealth agency, municipal

government, licensed nursing home, health care system or

hospital seeking reimbursement from the Coronavirus Aid, Relief

and Emergency Response Fund under section 103-B(a).

"Eligible expense." A non-budgeted cost incurred by a

Commonwealth agency or municipal government as a result of the

COVID-19 pandemic.

"Eligible period." The period beginning March 6, 2020, and

ending December 31, 2020.

20200HB2537PN3814 - 2 -

"Fund." The Coronavirus Aid, Relief and Emergency Response

Fund established under section 102-B(a).

"Health care system." An organized system of health care in

which multiple health care providers participate and the health

care providers satisfy all of the following:

(1) The health care providers provide health care

services in a manner so that the public is aware that the

health care providers participate in a joint arrangement.

(2) The health care providers participate in any of the

following joint activities:

(i) A utilization review that involves the review of

health care decisions of participating covered entities

by other participating covered entities or a third party

on behalf of the participating covered entities.

(ii) Quality assessment and improvement activities

that include the assessment of the treatment provided by

participating covered entities by other participating

covered entities or a third party on behalf of the

participating covered entities.

(iii) Payment activities if all of the following

apply:

(A) The financial risk for delivering health

care is partially or wholly shared by participating

covered entities through the joint arrangement.

(B) Protected health care information created or

received by the participating covered entities is

reviewed by other participating covered entities or a

third party on behalf of the participating covered

entities.

"Municipal government." The governing body of a county,

20200HB2537PN3814 - 3 -

city, township or borough in this Commonwealth.

"Small business." Any of the following which employs less

than 500 individuals:

(l) A limited liability company.

(2) A sole proprietorship.

(3) A joint-stock company or association.

(4) A corporation for profit as defined in 15 Pa.C.S. §

102 (relating to definitions).

(5) Corporation not-for-profit as defined in 15 Pa.C.S.

§ 102.

Section 102-B. Establishment of fund.

(a) Establishment.--The Coronavirus Aid, Relief and

Emergency Response Fund is established as a restricted account

in the State Treasury.

(b) Transfers.--The State Treasurer shall transfer any money

appropriated from the Federal Government to the Commonwealth

for expenses incurred as a result of the COVID-19 pandemic to

the fund.

Section 103-B. Disbursement.

(a) Allocation.--Money from the fund shall be allocated as

follows:

(1) An amount of $500,000,000 shall be allocated to

reimburse hospitals and health care systems for eligible

expenses.

(2) An amount of $300,000,000 shall be allocated to

reimburse licensed nursing homes for eligible expenses.

(3) An amount of $400,000,000 shall be allocated to

reimburse municipal governments for eligible expenses that

are not eligible for reimbursement from the Federal

Government for eligible expenses under the CARES Act as

20200HB2537PN3814 - 4 -

follows:

(i) An amount of $200,000,000 shall be allocated to

reimburse county governments for eligible expenses.

(ii) An amount of $200,000,000 shall be allocated to

reimburse cities, townships and boroughs for eligible

expenses.

(4) An amount of $100,000,000 shall be allocated to

reimburse Commonwealth agencies for eligible expenses.

(5) An amount of $300,000,000 shall be allocated to

reimburse all of the following for eligible expenses:

(i) Volunteer ambulance corporations.

(ii) Volunteer rescue organizations.

(iii) Regional police and fire departments.

(iv) Police departments providing law enforcement

services to a city, township or borough.

(v) Fire departments, including volunteer fire

companies, providing services to a city, township or

borough.

(6) An amount of $400,000,000 shall be allocated to the

Department of Community and Economic Development to assist

small businesses impacted by the COVID-19 pandemic as

follows:

(i) An amount of $200,000,000 shall be allocated for

the COVID-19 Working Capital Access Program. The

Department of Community and Economic Development shall

ensure that funds allocated under the paragraph are

distributed in a manner that prioritizes eligible small

businesses who have not received a loan from the

Commonwealth or the United States Small Business

Administration in relation to the COVID-19 pandemic.

20200HB2537PN3814 - 5 -

(ii) An amount of $200,000,000 shall be allocated to

cover 75% of the expenses and losses incurred by small

businesses as a result of complying with the Department

of Health and the Centers for Disease Control and

Prevention guidelines for sanitation and reopening in

relation to the COVID-19 pandemic.

(7) An amount of $500,000 shall be allocated to

reimburse the department for the costs incurred to implement

this article.

(b) Documentation.--

(1) In order to receive a reimbursement from the fund

under subsection (a), an eligible entity shall submit all of

the following to the department:

(i) A list of the eligible entity's eligible

expenses for the current calendar or fiscal year and the

eligible entity's original projected budget for the

current calendar or fiscal year.

(ii) The eligible entity's eligible expenses

incurred during the preceding month.

(iii) Any other document required by the department

that is necessary to ensure that the eligible entity is

in compliance with Federal law and guidance.

(2) Upon the review and approval of the documentation

submitted by an eligible entity under paragraph (1), the

State Treasurer shall allocate money from the fund in

accordance with subsection (a) to the eligible entity for

eligible expenses incurred during the preceding month.

subsection (a) shall remain in the fund until appropriated by

the General Assembly for the contingency costs of eligible

20200HB2537PN3814 - 6 -

entities until the eligible period has expired.

Section 104-B. Transparency portal.

(a) Establishment.--The department shall establish a

transparency portal on the department's publicly accessible

Internet website. The transparency portal shall provide current

information about the fund that is updated from the close of the

prior business day.

(b) Contents.--The transparency portal shall include all of

the following information:

(1) Each eligible entity that received money from the

fund.

(2) The amount of money each eligible entity received

from the fund.

(3) The total amount of money disbursed from the fund.

(4) The available remaining balance in the fund.

department by eligible entities pertaining to the fund shall be

posted on the department's publicly accessible Internet website

under section 1702 of the act of February 14, 2008 (P.L.6,

No.3), known as the Right-to-Know Law.

Section 105-B. Report.

After the final disposition of money in the fund, the

department shall submit a report to the General Assembly and the

Inspector General on all of the following:

(1) The final disposition of money in the fund.

(2) The use of the Do Not Pay Initiative Pilot Program

established under section 106-B(a).

(3) The number of entities that were ineligible to

receive money from fund.

(4) The savings to the fund as a result of the

20200HB2537PN3814 - 7 -

identification of entities that are ineligible to receive

money from the fund.

(5) The results of any Federal or State audit of the

money received by the Commonwealth to address the COVID-19

pandemic.

Section 106-B. Do-Not-Pay Pilot Program.

(a) Establishment.--The department shall enter a memorandum

of understanding with the United States Department of the

Treasury to established the Do-Not-Pay Pilot Program.

(b) Use.--Before issuing a reimbursement for eligible

expenses under section 103-B(a) to an entity, the department

shall utilize the Do-Not-Pay Pilot Program to ensure the entity

is eligible to receive the reimbursement.

Section 107-B. Improper payments and misuse of funds.

(a) Improper payments.--An eligible entity that receives

money from the fund and makes improper payments shall be held

liable by the Commonwealth under the Improper Payments

Elimination and Recovery Act of 2010 (Public Law 111-204, 124

Stat. 2224) for the total amount of any disallowance of Federal

funds as result of the improper payments.

(b) Misuse of funds.--An eligible entity that misuses

Federal funds shall be subject to civil action under the False

Claims Act (Public Law 97-258, 31 U.S.C. § 3729-3733).

penalties specified under subsections (a) and (b) to each

eligible entity that receives money from the fund.

Section 2. This act shall take effect immediately.

20200HB2537PN3814 - 8 -