PRINTER'S NO. 635
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
675
Session of
2021
INTRODUCED BY MALAGARI, KINSEY, SANCHEZ, BRIGGS, KULIK, MERSKI,
SCHLOSSBERG, McNEILL, GALLOWAY, LONGIETTI, ISAACSON, NEILSON,
CONKLIN, FLYNN, BURGOS, WARREN, SIMS, HILL-EVANS, CIRESI,
WEBSTER, DEASY, DRISCOLL, FREEMAN, STURLA, PASHINSKI,
SHUSTERMAN, D. WILLIAMS, PISCIOTTANO, DELLOSO, DAY AND ROZZI,
FEBRUARY 26, 2021
REFERRED TO COMMITTEE ON COMMERCE, FEBRUARY 26, 2021
AN ACT
Establishing the COVID-19 Entertainment and Hospitality Grant
Program to provide grants to entertainment venues and
businesses within the hospitality industry that have been
adversely impacted by the COVID-19 pandemic.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the COVID-19
Entertainment and Hospitality Grant Program Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Applicant." An entertainment venue located in this
Commonwealth or an entity operating within the hospitality
industry in this Commonwealth that applies for assistance under
the program established in section 3.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
"Bar." An establishment that primarily serves alcohol for
on-site consumption. The term includes a tavern or night club.
"Brewery." An establishment that produces or sells beer as
defined by section 5052(d) of the Internal Revenue Code of 1986
(Public Law 99-514, 26 U.S.C. ยง 5052(d)).
"COVID-19." The coronavirus disease 2019, an infectious
disease caused by severe acute respiratory syndrome coronavirus
2 that was first identified during December 2019 in Wuhan,
China.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Entertainment venue." An entity which derives its business
profits from providing entertainment to the public.
"Hospitality." An entity which provides at least one of the
following to individuals:
(1) Meals.
(2) Beverages.
(3) Recreation.
(4) Lodging.
"Hotel." A place of business located in this Commonwealth
having a North American Industry Classification System (NAICS)
designation from the United States Census Bureau within the
Accommodation subsector (721) and where accommodation is
provided for the public, with or without charge.
"Performing arts facility." Any of the following:
(1) Halls or theaters in which live musical, concert,
dance, ballet and legitimate play book-length productions are
performed that have seating for no more than 350 people.
(2) Small movie theaters that have permanent seating in
the facility for no more than 350 people.
20210HB0675PN0635 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"Proclamation of disaster emergency." 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.
"Program." The COVID-19 Entertainment and Hospitality Grant
Program established under section 3.
"Restaurant." A nonfranchise employer in this Commonwealth
that satisfies all of the following:
(1) The employer has a 72251, 72241, 722320 or 722330
NAICS designation from the United States Census Bureau.
(2) The employer's gross annual receipts for the prior
fiscal year did not exceed $1,000,000.
Section 3. Establishment and duties of department.
(a) Establishment.--The program is established within the
department.
(b) Duties of department.--The department shall provide
grants under the program in accordance with this act to
applicants that have been financially adversely affected by
COVID-19 or the proclamation of disaster emergency.
Section 4. Eligibility.
To be considered for a grant under the program, the applicant
must certify in good faith as the date of the application that
the applicant:
(1) Operates one location within this Commonwealth.
(2) Employs no more than 150 full-time equivalent
employees at the business location.
(3) Suffered a financial adverse economic impact due to
COVID-19 or the proclamation of disaster emergency which
makes this grant request necessary to support the ongoing
operations of the business.
20210HB0675PN0635 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(4) Is an eligible entertainment venue or entity
operating in the hospitality industry in this Commonwealth,
including, but not limited to:
(i) Restaurant.
(ii) Bar, tavern or brewery.
(iii) Hotel or lodging facility.
(iv) Performing arts facility.
(v) Catering and catering supplies company.
Section 5. Application.
(a) Form.--The department shall develop a grant application
form for applicants to apply for a grant under the program
established under section 3. At a minimum, the application form
shall contain the following information:
(1) The name, address and contact information of the
applicant.
(2) The amount of grant money requested.
(3) The proposed use of any grant money received from
the program.
(4) The financial impact on the business due to COVID-19
or the proclamation of disaster emergency.
(5) Any other information that the department deems
necessary and appropriate.
(b) Submission.--An applicant shall submit the application
to the department in a manner prescribed by the department to be
eligible for a grant under the program.
Section 6. Restrictions.
Grant money awarded shall only be used for business
operations, including, but not limited to:
(1) Payroll costs.
(2) Payment of interest on mortgage obligations, which
20210HB0675PN0635 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
may not include any prepayment of or payment of principal on
a mortgage obligation.
(3) Payment on a rent obligation.
(4) Payment for utilities.
Section 7. Award of grants.
(a) Timing.--No later 20 days after receipt of the grant
application form under section 5, the department shall:
(1) Review the grant application form.
(2) Determine whether to award a grant to the applicant.
(3) Determine the amount of the grant money to be
awarded to the applicant, if applicable.
(b) Considerations.--In determining the amount of the grant
money to be awarded to an applicant, the department shall
consider:
(1) The geographic and demographic diversity of the
business.
(2) How an applicant and the surrounding community in
which the applicant is located would be served through the
award of the grant money to the applicant.
(c) Documentation.--The department may require documentation
and information regarding the gross annual receipts and
information of employees of an applicant.
(d) Priority.--Priority in the awarding of grants shall be
given to applicants that have not received a loan or grant
issued under the authority of the Commonwealth or the
Commonwealth's political subdivisions for COVID-19 relief or by
the Federal government under the Coronavirus Aid, Relief, and
Economic Security Act (Public Law 116-136, 134 Stat. 281).
Section 8. Public notice.
The department shall provide information regarding the
20210HB0675PN0635 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
availability and award of grants under the program on the
department's publicly accessible Internet website.
Section 9. Limitation.
Subject to the availability of funding, a grant to an
applicant under the program shall not exceed $20,000. An
applicant may be deemed ineligible if the applicant previously
received more than $100,000 in the form of a loan or grant for
COVID-19 relief from the Commonwealth.
Section 10. Reporting.
(a) Report.--No later than 60 days after notice is published
under section 8, the department shall prepare a report that
lists each applicant that received grant money under the program
and a summary of the information specified in each grant
application form.
(b) Publication.--The department shall post the report
required under subsection (a) on the department's publicly
accessible Internet website.
Section 11. Guidelines.
The department may promulgate regulations and guidelines for
the implementation and administration of this act.
Section 12. Appropriation.
The sum of $145,000,000 shall be transferred from the
Workers' Compensation Security Fund into the General Fund and
$55,000,000 shall be transferred from the Budget Stabilization
Reserve Fund into the General Fund for the purpose of awarding
grants under this act.
Section 13. Allocation.
The department shall allocate a minimum of $200,000,000 for
the purpose of awarding grants under this program. The
department shall reserve $100,000,000 of the funds received for
20210HB0675PN0635 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
entertainment venues and $100,000,000 for entities in the
hospitality industry.
Section 14. Effective date.
This act shall take effect immediately.
20210HB0675PN0635 - 7 -
1
2
3
4