HOUSE AMENDED
PRIOR PRINTER'S NOS. 74, 102
PRINTER'S NO. 144
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
109
Session of
2021
INTRODUCED BY PITTMAN, JANUARY 23, 2021
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, FEBRUARY 4, 2021
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,
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every State depository and every debtor or creditor of the
Commonwealth," IN EMERGENCY FINANCE AND TAX PROVISIONS,
FURTHER PROVIDING FOR DECLARATION OF POLICY AND PROVIDING FOR
NONTAXABILITY OF CERTAIN INCOME; in emergency COVID-19
response, establishing the Hospitality Industry Recovery
Program, providing for emergency education relief to
nonpublic schools and for emergency education relief to area
career and technical schools, intermediate units and other
educational entities and repealing provisions relating to
Pennsylvania Housing Finance Agency; establishing the Rental
and Utility Assistance Grant Program; in additional special
funds and restricted accounts, providing for Workers'
Compensation Security Fund transfer to COVID-19 Response
Restricted Account; in 2020-2021 Restrictions on
Appropriations for Funds and Accounts, further providing for
fund transfers; and making appropriations.
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 by adding sections to read:
SECTION 1. SECTION 101-A OF THE ACT OF APRIL 9, 1929
(P.L.343, NO.176), KNOWN AS THE FISCAL CODE, ADDED MARCH 27,
2020 (P.L.30, NO.10), IS AMENDED TO READ:
SECTION 101-A. DECLARATION OF POLICY.
THE GENERAL ASSEMBLY FINDS AND DECLARES AS FOLLOWS:
(1) THERE ARE CIRCUMSTANCES UNDER WHICH IT IS IMPOSSIBLE
TO EFFECTIVELY COMPLY WITH LAW RELATING TO STATE FINANCE OR
STATE TAX.
(2) WHEN CIRCUMSTANCES UNDER PARAGRAPH (1) ARISE, IT IS
NECESSARY FOR COMMONWEALTH AGENCIES TO EXERCISE [TEMPORARY]
POWERS AND DUTIES SET FORTH IN THIS ARTICLE.
SECTION 1.1. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:
SECTION 104-A. NONTAXABILITY OF CERTAIN INCOME.
(A) FORGIVENESS OF PAYCHECK PROTECTION LOANS.--
(1) FOR THE PURPOSES OF COMPUTING THE TAX UNDER ARTICLE
III OF THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE
TAX REFORM CODE OF 1971, THE CLASSES OF INCOME UNDER SECTION
303 OF THE TAX REFORM CODE OF 1971 SHALL NOT INCLUDE ANY
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AMOUNT WHICH IS EXCLUDED FROM FEDERAL GROSS INCOME UNDER
SECTIONS 276 AND 278(A) OF THE COVID-RELATED TAX RELIEF ACT
OF 2020, ENACTED AS SUBTITLE B OF TITLE II OF DIVISION N OF
THE CONSOLIDATED APPROPRIATIONS ACT, 2021 (PUBLIC LAW 116-
260 , 134 STAT. 1182 ).
(2) FOR THE PURPOSES OF ARTICLE III OF THE TAX REFORM
CODE OF 1971, NO DEDUCTION MAY BE DISALLOWED FOR AN EXPENSE
THAT IS OTHERWISE DEDUCTIBLE IF THE PAYMENT OF THE EXPENSE
RESULTS IN FORGIVENESS OF A COVERED LOAN UNDER PARAGRAPH (1).
(B) PAYMENT RECEIVED BY INDIVIDUALS.--FOR THE PURPOSES OF
COMPUTING THE TAX UNDER ARTICLE III OF THE TAX REFORM CODE OF
1971, THE CLASSES OF INCOME UNDER SECTION 303 OF THE TAX REFORM
CODE OF 1971 SHALL NOT INCLUDE A PAYMENT RECEIVED BY AN
INDIVIDUAL FROM THE UNITED STATES UNDER SECTION 2201 THROUGH THE
CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT (PUBLIC LAW
116-136, 134 STAT. 281) OR SECTIONS 272 AND 273 OF THE COVID-
RELATED TAX RELIEF ACT OF 2020, ENACTED AS SUBTITLE B OF TITLE
II OF DIVISION N OF THE CONSOLIDATED APPROPRIATIONS ACT, 2021
(PUBLIC LAW 116-260, 134 STAT. 1182).
Section 134-C. Hospitality Industry Recovery Program.
(a) County block grants.--From money appropriated to the
department for COVID Relief - County Block Grant - Hospitality
Industry Recovery Program, each county shall receive an amount
equal to the population proportion amount as determined by
paragraph (2). The following shall apply:
(1) The department shall distribute funding to counties
under this subsection on or before February 28, 2021.
(2) For purposes of this subsection, the population
proportion amount shall be determined as follows:
(i) divide:
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(A) the population estimate of the county; by
(B) the sum of the population estimates of all
counties; and
(ii) multiply the quotient under subparagraph (i) by
the total amount appropriated for COVID Relief - County
Block Grant - Hospitality Industry Recovery Program.
(3) For purposes of this subsection, a county's
population shall be equal to the published estimate by the
United States Census Bureau Population Estimates Program for
calendar year 2019.
(b) County Block Grant - Hospitality Industry Recovery
Program.--The County Block Grant - Hospitality Industry Recovery
Program is established within the department. The following
shall apply to the program:
(1) No later than March 1, 2021, e ach county that
receives a block grant under this section shall contract with
one or more CEDO OR CDFI designated to serve that county to
award grants under this subsection.
(2) Subject to the prohibition under subparagraph (ii),
grants may be awarded to eligible applicants for the purpose
of alleviating revenue losses and paying eligible operating
expenses. The following shall apply to grants awarded under
this subsection:
(i) A grant awarded to an eligible applicant under
this subsection may not exceed $50,000.
(ii) A grant may not be awarded to pay for the same
eligible operating expenses for which an eligible
applicant receives or received payment, reimbursement or
loan forgiveness from the following sources:
(A) The CARES Act or Consolidated Appropriations
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Act, 2021 money that is not required to be repaid to
the Federal Government.
(B) The act of May 29, 2020 (P.L. , No.2A),
known as the COVID-19 Emergency Supplement to the
General Appropriation Act of 2019.
(3) The receipt of a loan or grant issued under the
authority of the Federal Government or the Commonwealth
shall not disqualify an applicant from eligibility for a
grant under this section.
(4) Priority in the awarding of grants shall be given to
eligible applicants that:
(i) have not received a loan or grant issued under
the authority of the Commonwealth or the Commonwealth's
political subdivisions or by the Federal Government under
the CARES Act or Consolidated Appropriations Act, 2021;
(ii) were subject to closure by 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; or
(iii) can demonstrate A REDUCTION IN REVENUE WHICH
MEETS one of the following:
(A) A reduction in revenue GROSS RECEIPTS of 50%
or more for the period beginning after March 31,
2020, and ending before December 31, 2020, in
comparison to the period beginning after March 31,
2019, and ending before December 31, 2019.
(B) If the eligible applicant was not in
operation during the entire comparison period under
clause (A), but was in operation on February 15,
2020, a monthly average reduction in revenue GROSS
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RECEIPTS of 50% or more for the period beginning
after March 31, 2020, and ending before December 31,
2020, in comparison to the period beginning after
January 1, 2020, and ending before April 1, 2020.
(5) The following shall apply to applications:
(i) Applications for grants under this section shall
be in a form determined by a county with input from a
CEDO OR CDFI processing the applications on behalf of a
county and shall contain documentation as required by the
county. Applications shall be available electronically.
(ii) By March 15, 2021, each CEDO OR CDFI shall
receive AND CONSIDER applications on a rolling basis
until funding for grants received by the county under
subsection (a) in which the CEDO OR CDFI is designated to
perform services has been exhausted, or June 15, 2021,
whichever occurs first.
(6) The following shall apply to reviewing applications:
(i) By July 15, 2021, each CEDO OR CDFI shall
approve or disapprove applications for grants under the
program.
(ii) Upon approving a grant AN APPLICATION under
subparagraph (i), a CEDO shall contract OR CDFI SHALL
ENTER INTO A GRANT AGREEMENT with the eligible applicant
through electronic means in order to award the grant.
(iii) The contract GRANT AGREEMENT required under
subparagraph (ii) shall explain the terms and conditions
of the grant, including each applicable law, statute and
reporting requirement.
(iv) The contract GRANT AGREEMENT under subparagraph
(ii) must MAY be electronically signed and returned to
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the CEDO OR CDFI that approved the application.
(7) An eligible applicant or authorized representative
of the eligible applicant making application to the program
must certify in good faith to each of the following:
(i) The eligible applicant was in operation on
February 15, 2020, and, if required, paid income taxes to
the Federal and State Government, as reported on
individual or business tax returns.
(ii) The eligible applicant remains in operation and
does not intend to permanently cease operations within
one year of the date of application.
(iii) COVID-19 has had an adverse economic impact on
the eligible applicant which makes the grant request
necessary to support the ongoing operations of the
eligible applicant.
(iv) The grant will be used to pay for COVID-19-
related economic impacts.
(v) During the period beginning on January 1, 2021,
and ending on June 30, 2021, the applicant has not and
will not receive another grant under this program.
(vi) An eligible applicant or authorized
representative of the eligible applicant must certify
that the information provided in an application to the
program and the information provided in all supporting
documents and forms is true and accurate in all material
respects. An eligible applicant or an authorized
representative of the eligible applicant that knowingly
makes a false statement to obtain a grant under the
program is punishable under penalty of perjury and fines
pursuant to 18 Pa.C.S. ยง 4904 (relating to unsworn
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falsification to authorities).
(8) The following shall apply to the awarding of grants
under this subsection:
(i) A CEDO OR CDFI contracted to award grants may
award grants in increments of $5,000, not to exceed the
limitation under paragraph (2)(i).
(ii) A fully executed contract GRANT AGREEMENT as
required under paragraph (6) is required prior to
disbursement of grant funds.
(iii) The aggregate amount of all grants awarded may
not exceed the amount of money received by the county
under subsection (a) in which the CEDO OR CDFI is
designated to perform services for the County Block Grant
- Hospitality Industry Recovery Program.
(9) A CEDO OR CDFI may charge a fee not to exceed $750
$500 per completed AND REVIEWED grant application and, in
addition, up to 1% of the amount of a grant award . Fees
charged under this paragraph shall be deducted from the total
amount of money distributed to the county under subsection
(a) in which the CEDO OR CDFI is designated to perform
services for the County Block Grant - Hospitality Industry
Recovery Program and may not reduce the amount of the grant
awarded to an eligible applicant.
(10) Each grant awarded under this subsection shall be
paid to eligible applicants by July 31, 2021.
(11) A county providing grants under this subsection
shall compile a report, which shall include the following:
(i) A list of each grant awarded under the program.
(ii) The name and address of each grant recipient.
(iii) The amount of the grant and a description of
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the financial impact to the grantee for which the grant
was awarded.
(iv) The name of the CEDO OR CDFI that processed the
grant.
(12) A report required under paragraph (11) shall be
submitted to the department by August 31, 2021. The
department shall prepare a consolidated report with
information from all counties and shall submit the report to
the chairperson and minority chairperson of the
Appropriations Committee of the Senate and the chairperson
and minority chairperson of the Appropriations Committee of
the House of Representatives by September 30, 2021. The
report shall also be posted and maintained on the county's
and department's publicly accessible Internet website.
(13) A COUNTY AWARDING GRANTS AND A CEDO OR CDFI
processing grants on behalf of a county under this subsection
shall provide documentation to the Department of the Auditor
General OR THE DEPARTMENT , upon request, for purposes of an
audit review.
(14) THE DEPARTMENT IS PROHIBITED FROM PLACING ANY
ADDITIONAL STIPULATIONS ON COUNTIES THAT ARE IN ADDITION TO
THIS SECTION.
(c) Return of unused funds.--A county receiving a block
grant under subsection (a) that does not expend its entire
distribution on the program by August 1 15 , 2021, shall return
any unused funds to the State Treasurer for deposit into the
Workers' Compensation Security Fund.
(d) Review.--This section shall not be subject to the
following:
(1) Article II of the act of July 31, 1968 (P.L.769,
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No.240), referred to as the Commonwealth Documents Law.
(2) Sections 204(b) and 301(10) of the act October 15,
1980 (P.L.950, No.164), known as the Commonwealth Attorneys
Act.
(3) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act. (RESERVED).
(e) Definitions.--The following words and phrases when used
in this section shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"CDFI." A COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION THAT
IS CERTIFIED BY THE UNITED STATES DEPARTMENT OF TREASURY, IS
HEADQUARTERED IN THIS COMMONWEALTH, IS PART OF THE 17-MEMBER
PENNSYLVANIA CDFI NETWORK AND PRIMARILY PROVIDES BUSINESS LOANS
TO LOW-TO-MODERATE INCOME INDIVIDUALS AND BUSINESS OWNERS.
"Certified economic development organization" or "CEDO." An
economic development organization that has been certified by the
Pennsylvania Industrial Development Authority or an economic
development organization that serves more than one county and is
accredited by the International Economic Development Council.
"Consolidated Appropriations Act, 2021." The Consolidated
Appropriations Act, 2021 (P.L.116-260) (PUBLIC LAW 116-260) .
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Economic development organization." A local development
district, an industrial development agency, industrial resource
center, redevelopment authority, community development financial
institution or any other nonprofit economic development
organization that is certified to participate in the
Pennsylvania Industrial Development Authority loan program.
"Eligible applicant." A for-profit entity that meets each of
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the following:
(1) Is not publicly traded.
(2) Experienced a reduction in revenue in calendar year
2020, measured as follows:
(i) the applicant had gross receipts during the
first, second, third or fourth quarter in calendar year
2020 that demonstrate at least a 25% reduction from the
applicant's gross receipts during the same quarter in
calendar year 2019;
(ii) if the applicant was not in business during the
first or second quarter of calendar year 2019, but was in
business during the third and fourth quarters of calendar
year 2019, the applicant had gross receipts during the
first, second, third or fourth quarter of calendar year
2020 that demonstrate at least a 25% reduction from the
applicant's gross receipts during the third or fourth
quarter of calendar year 2019;
(iii) if the applicant was not in business during
the first, second or third quarter of calendar year 2019,
but was in business during the fourth quarter of calendar
year 2019, the applicant had gross receipts during the
first, second, third or fourth quarter of calendar year
2020 that demonstrate at least a 25% reduction from the
fourth quarter of calendar year 2019;
(iv) if the applicant was not in business during
calendar year 2019, but was in operation on February 15,
2020, the applicant had gross receipts during the second,
third or fourth quarter of calendar year 2020 that
demonstrate at least a 25% reduction from the gross
receipts of the entity during the first quarter of
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calendar year 2020; or
(v) an applicant that was in operation in all four
quarters of calendar year 2019 is deemed to have
experienced the revenue reduction in subparagraph (i) if
the applicant experienced a reduction in annual receipts
of at least 25% in 2020 compared to 2019 and the
applicant provides copies of its annual Federal tax forms
substantiating the revenue decline.
(vi) If an applicant changed ownership or control in
calendar year 2020, the applicant may measure its
reduction in revenue in calendar year 2020 under
subparagraphs (i), (ii), (iii), (iv) or (v) using the
gross receipts of the entity for 2019.
(3) Meets each of the following conditions as of
February 15, 2020:
(i) Operates a place of business within this
Commonwealth having a NAICS designation within the
Accommodation subsector (721) or Food Services and
Drinking Places subsector (722) and where accommodations,
food or drink is served to or provided for the public,
with or without charge.
(ii) Has fewer than 500 300 full-time equivalent
employees. For purposes of determining the number of
full-time equivalent employees under this paragraph
SUBPARAGRAPH , the calculation shall include each employee
of the eligible applicant notwithstanding whether the
eligible applicant has employees at multiple locations.
(iii) Has a maximum tangible net worth of not more
than $15,000,000 computed in accordance with generally
accepted accounting principles.
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"Eligible operating expense." An operating expense,
including a payroll and nonpayroll expense, that is both
ordinary and necessary. An ordinary expense is one that is
common and accepted in an eligible applicant's industry. A
necessary expense is one that is helpful and appropriate for an
eligible applicant's trade or business. For purposes of
determining an eligible operating expense, the following
limitations shall apply:
(1) The operating expense must have been incurred
between March 1, 2020, and June 15, 2021, or prior to
submission of an application under subsection (b), whichever
occurs first.
(2) For a mortgage obligation, the mortgage must have
been in force before February 15, 2020.
(3) For rent, under lease agreements, the lease
agreement must have been in force before February 15, 2020.
(4) For utility costs, service must have begun before
February 15, 2020.
(5) If an existing mortgage obligation or lease
agreement in force before February 15, 2020, is refinanced or
restructured after February 15, 2020, the mortgage obligation
or lease agreement is deemed to have been in force before
February 15, 2020.
"Full-time equivalent employee." The quotient obtained by
dividing the total number of hours for which employees were
compensated for employment over the preceding 12-month period by
2,080.
"Gross receipts." Revenue in whatever form received or
accrued, in accordance with the entity's accounting method, from
whatever source, including from the sales of products or
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services, interest, dividends, rents, royalties, fees or
commissions, reduced by returns and allowances. The term does
not include the following:
(1) taxes collected for and remitted to a taxing
authority if included in gross or total income, such as sales
or other taxes collected from customers and excluding taxes
levied on the concern or its employees;
(2) proceeds from transactions between a concern and its
domestic or foreign affiliates; and
(3) amounts collected for another by a travel agent,
real estate agent, advertising agent or conference management
service provider.
"NAICS." A classification within the North American Industry
Classification System developed for use by Federal statistical
agencies for the collection, analysis and publication of
statistical data related to the United States economy.
"Program." The County Block Grant - Hospitality Industry
Recovery Program established under subsection (b).
Section 141-C. Emergency education relief to nonpublic schools.
(a) Application and reporting.--From money appropriated for
COVID Relief - GEER - Emergency Assistance to Nonpublic Schools
during the 2020-2021 fiscal year, the following shall apply:
(1) The Department of Education shall provide to
nonpublic schools that are eligible to apply for money under
this section a notice and application which includes the
appropriate uses of the money and any other information
required. The notice and application shall be provided no
later than 30 days after the Commonwealth receives the money
from the Federal Government.
(2) The Department of Education shall approve or deny an
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application under this section no later than 30 days after
the receipt of the application.
(3) THE DEPARTMENT OF EDUCATION MAY NOT APPLY ADDITIONAL
ELIGIBILITY CRITERIA IN ADDITION TO FEDERAL LAW OR FEDERAL
GUIDANCE.
(3) (4) The Department of Education shall submit an
interim report to the chairperson and minority chairperson of
the Appropriations Committee of the Senate, the chairperson
and minority chairperson of the Appropriations Committee of
the House of Representatives, the chairperson and minority
chairperson of the Education Committee of the Senate and the
chairperson and minority chairperson of the Education
Committee of the House of Representatives 90 days after an
award of money is made under this section. The report shall
include the number of approved and denied applications, the
amount of each award and the intended uses of the money as
stated in the applications.
(4) (5) The Department of Education shall submit a final
report to the chairperson and minority chairperson of the
Appropriations Committee of the Senate, the chairperson and
minority chairperson of the Appropriations Committee of the
House of Representatives, the chairperson and minority
chairperson of the Education Committee of the Senate and the
chairperson and minority chairperson of the Education
Committee of the House of Representatives by January 1, 2022.
The report shall include the number of approved and denied
applications under this section, the amount of each award and
the intended uses of the money as stated in the applications.
(b) Definition.--As used in this section, the term "GEER"
means the Governor's Emergency Education Relief Fund described
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under Federal law SECTION 312 OF TITLE III OF DIVISION M OF THE
CONSOLIDATED APPROPRIATIONS ACT, 2021 .
Section 142-C. E mergency education relief to area career and
technical schools, intermediate units and other
educational entities.
(a) General rule.--From money appropriated for COVID Relief
- GEER during the 2020-2021 fiscal year, the following shall
apply:
(1) The amount of $17,500,000 $20,000,000 shall be
distributed to area career and technical schools as follows:
(i) Multiply the amount received by the area career
and technical school from the secondary career and
technical education subsidy under section 2502.8 of the
act of March 10, 1949 (P.L.30, No.14), known as the
Public School Code of 1949, for school year 2019-2020 by
$17,500,000 $20,000,000 .
(ii) Divide the product from subparagraph (i) by the
sum of the amounts received by area career and technical
schools from the secondary career and technical education
subsidy under section 2502.8 of the Public School Code of
1949 for school year 2019-2020.
(2) The amount of $17,500,000 shall be distributed to
intermediate units as follows:
(i) Multiply the intermediate unit's 2020-2021
market value/income aid ratio by its 2018-2019 average
daily membership.
(ii) Multiply the product from subparagraph (i) by
$17,500,000.
(iii) Divide the product from subparagraph (ii) by
the sum of the products of the 2020-2021 market
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value/income aid ratio multiplied by the 2018-2019
average daily membership for all intermediate units.
(2) (RESERVED).
(3) The amount of $7,075,000 $8,075,000 shall be
distributed to approved private schools and , the chartered
schools for the education of the deaf or the blind AND THE
PRIVATE RESIDENTIAL REHABILITATIVE INSTITUTIONS as follows:
(i) Multiply the 2019-2020 full-time equivalent
enrollment of the approved private school or , chartered
school for the education of the deaf or the blind OR
PRIVATE RESIDENTIAL REHABILITATIVE INSTITUTION by
$7,075,000 $8,075,000 .
(ii) Divide the product from subparagraph (i) by the
sum of the 2019-2020 full-time equivalent enrollment for
all approved private schools and , chartered schools for
the education of the deaf or the blind AND PRIVATE
RESIDENTIAL REHABILITATIVE INSTITUTIONS .
(4) The amount of $5,000,000 shall be distributed to the
State System of Higher Education to support the ongoing
functionality of its member institutions as directed by the
chancellor.
(5) THE AMOUNT OF $14,000,000 SHALL BE DISTRIBUTED TO
THE COMMUNITY COLLEGES AS FOLLOWS:
(I) MULTIPLY THE AMOUNT RECEIVED BY THE COMMUNITY
COLLEGE FROM THE COMMUNITY COLLEGE SUBSIDY UNDER SECTION
1913-A OF THE ACT OF MARCH 10, 1949 (P.L.30, NO.14),
KNOWN AS THE PUBLIC SCHOOL CODE OF 1949, FOR FISCAL YEAR
2019-2020 BY $14,000,000.
(II) DIVIDE THE PRODUCT UNDER SUBPARAGRAPH (I) BY
THE SUM OF THE AMOUNTS RECEIVED BY COMMUNITY COLLEGES
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FROM THE COMMUNITY COLLEGE SUBSIDY UNDER SECTION 1913-A
OF THE PUBLIC SCHOOL CODE OF 1949 FOR FISCAL YEAR 2019-
2020.
(b) Definitions.-- As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Average Daily Membership." The sum of the average daily
membership of an intermediate unit's component school districts.
"Full-time equivalent enrollment." The full-time equivalent
enrollment as defined under section 1376 of the Public School
Code of 1949 for an approved private school and , the full-time
equivalent enrollment as defined under section 1376.1 of the
Public School Code of 1949 for a chartered school for the
education of the deaf or the blind . AND THE NUMBER OF STUDENTS
ENROLLED UNDER SECTION 914.1-A OF THE PUBLIC SCHOOL CODE OF 1949
FOR A PRIVATE RESIDENTIAL REHABILITATIVE INSTITUTION.
"GEER." The Governor's Emergency Education Relief Fund as
described under Federal law SECTION 312 OF TITLE III OF DIVISION
M OF THE CONSOLIDATED APPROPRIATIONS ACT, 2021 .
Section 2. Subarticle J of Article I-C of the act is
repealed:
[SUBARTICLE J
PENNSYLVANIA HOUSING FINANCE AGENCY
Section 190-C. Definitions.
The following words and phrases when used in this subarticle
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Agency." The Pennsylvania Housing Finance Agency.
"Eligible landlord." An individual or entity owning a place
of residence that leases the residence to an individual and that
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experienced a loss of rental income because the lessee became
unemployed after March 1, 2020, or the lessee had their annual
household income reduced by 30% or more due to reduced work
hours and wages related to COVID-19. The loss of rental income
must be at least 30 days past due.
"Lessee." An individual who leases a place of residence in
which the individual will permanently reside.
Section 191-C. Mortgage and Rental Assistance Program.
(a) Establishment of program.--The agency shall establish
the COVID Relief - Mortgage and Rental Assistance Grant Program.
(b) Purpose of the program.--The program shall receive
applications from lessees, landlords, mortgagees and mortgagors
and award grants to eligible landlords and mortgagees in
accordance with this act.
(c) Use of funds.--Money appropriated to the Pennsylvania
Housing Finance Agency for COVID Relief - Mortgage and Rental
Assistance shall be used to make grants under this subarticle.
(d) Allocation.--The agency shall allocate a minimum of
$150,000,000 of the funds received for use under this subarticle
for rental assistance grants.
(e) Guidelines.--The agency shall establish guidelines that
are consistent with the provisions of this subarticle within 30
days of the effective date of this section. The guidelines shall
be:
(1) submitted to the Legislative Reference Bureau for
publication in the Pennsylvania Bulletin; and
(2) posted on the agency's publicly accessible Internet
website.
(f) (Reserved).
(g) Program requirements.--The following shall apply:
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(1) An eligible lessee, mortgagor, landlord or mortgagee
shall submit to the agency the name of the lessee or
mortgagor from whom rental or mortgage payments are sought,
along with any additional information deemed necessary by the
agency to carry out the agency's responsibilities under this
section.
(2) Assistance may be awarded to lessors or mortgagees
on behalf of lessees or mortgagors who became unemployed
after March 1, 2020, or had their annual household income
reduced by 30% or more due to reduced work hours and wages
related to COVID-19.
(3) The agency shall develop an application for eligible
lessees, mortgagors, landlords or mortgagees to apply for
assistance under this section within 30 days of the effective
date of this section. The application shall include an
attestation by the landlord or mortgagee releasing the lessee
or mortgagor of any remaining obligation for any past due or
future rent or mortgage payment for which the agency pays the
landlord or mortgagee. The application shall be made
available and posted on the agency's publicly accessible
Internet website and be in a form that can be completed and
returned by the lessee, mortgagor, landlord or mortgagee
electronically or through the United States mail. The
deadline for submitting applications to the agency shall be
September 30, 2020.
(4) The agency shall verify the name of the lessee or
mortgagor with the Department of Labor and Industry's Bureau
of Unemployment Compensation to ensure the lessee or
mortgagor became unemployed after March 1, 2020.
(5) The agency shall require any applicant seeking
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assistance based on reduced work hours or wages related to
the coronavirus pandemic to submit information verifying such
information.
(6) The agency shall make payments only to lessors or
mortgagees.
(7) The agency shall make payments only on behalf of
households with an annualized current income of no more than
the upper limit of "median income" as defined in guidelines
published annually by the United States Department of Housing
and Urban Development.
(8) The agency shall notify each lessee or mortgagor of
the amount of payment made to the landlord or mortgagee on
the lessee's or mortgagor's behalf.
(9) The agency shall make payments as follows:
(i) For rental assistance, an amount equal to 100%
of the lessee's monthly rent, not to exceed $750 per
month, for each month for which assistance is sought for
a maximum of six months. Payments shall be made no later
than November 30, 2020.
(ii) For mortgage assistance, an amount equal to
100% of the mortgagor's monthly mortgage, not to exceed
$1,000 per month, for each month for which assistance is
sought for a maximum of six months. Payments shall be
made no later than November 30, 2020.
(h) Report.--By December 31, 2020, the agency shall issue a
report to the chairperson and minority chairperson of the
Appropriations Committee of the Senate and the chairperson and
minority chairperson of the Appropriations Committee of the
House of Representatives and post the report on the agency's
publicly accessible Internet website. The report shall include
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the following information:
(1) The total number of landlords who applied for
assistance under this section.
(2) The total number of mortgagees who applied for
assistance under this section.
(3) The total amount of assistance that was sought.
(4) The average amount of assistance that was applied
for under this section.
(5) The average amount of assistance that was provided
under this section.
(6) The total number of landlords and mortgagees who
received assistance under this section by county.
(7) The value of payments made by the agency under this
section by county.]
Section 3. The act is amended by adding an article to read:
ARTICLE I-D
RENTAL AND UTILITY ASSISTANCE GRANT PROGRAM
Section 101-D. 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:
"Consolidated Appropriations Act, 2021." The Consolidated
Appropriations Act, 2021 (P.L.116-260) (PUBLIC LAW 116-260) .
"Department." The Department of Human Services of the
Commonwealth.
"Program." The Rental and Utility Assistance Grant Program
established under section 102-D.
"Utilities." Includes separately stated electricity, gas,
water and sewer, trash removal and energy costs, such as fuel
oil. Telecommunications services, such as telephone, cable and
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Internet, delivered to the rental dwelling are not considered to
be utilities.
Section 102-D. Rental and Utility Assistance Grant Program.
(a) Establishment.--The Rental and Utility Assistance Grant
Program is established within the department. The program shall
provide the following services to eligible individuals:
(1) Rental assistance, including the following:
(i) Rent.
(ii) Rental arrears.
(iii) Utilities and home energy costs.
(iv) Utilities and home energy cost arrears.
(v) Other expenses related to housing incurred due,
directly or indirectly, to COVID-19, to the extent
permitted by Federal law.
(2) Housing stability services, including case
management and other services intended to keep households
stably housed.
(b) County.--Each county is eligible to participate in the
program. The following shall apply:
(1) Grant funds received by a county under this article
shall be used for the provision of services under subsection
(a). Associated TO THE EXTENT PERMITTED BY FEDERAL LAW,
ASSOCIATED administrative costs and housing stability
services shall not exceed 10% 9.09% of the amount of the
grant funds. Not more than 2% 5% of the grant funds shall be
utilized to cover the costs of administering the program.
(2) A county may not use the grant funds received as the
non-State match for other State funds, programs or grants.
(3) Counties that participate in the Human Services
Block Grant Program under Article XIV-B of the act of June
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13, 1967 (P.L.31, No.21), known as the Human Services Code,
must use the funds for eligible services under this article.
(c) Distribution.--Grant funds shall be distributed as
follows:
(1) From money appropriated for the program, each county
shall receive an amount equal to the population proportion
amount as determined by paragraphs (3) and (4). For purposes
of this paragraph, a county's population shall be equal to
the published estimate by the United States Census Bureau
Population Estimates Program for calendar year 2019.
(2) The department shall distribute funding to counties
before April 1, 2021, or 30 days after the effective date of
this section, whichever is sooner.
(3) For the purposes of this subsection, the population
proportion shall be determined as follows:
(i) the population estimate of the county; divided
by
(ii) the sum of the population estimates of all
counties.
(4) Counties shall receive a disbursement in an amount
necessary so that the total disbursement to a county is
determined as follows:
(i) Add:
(A) the amount of money received by the
Commonwealth from the Federal Government for
emergency rental assistance under the Consolidated
Appropriations Act, 2021; and
(B) the amount of money paid directly by the
Federal Government to units of local governments for
emergency rental assistance under the Consolidated
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Appropriations Act, 2021.
(ii) Multiply:
(A) the county's population proportion; and
(B) the sum under subparagraph (i).
(5) An amount equal to a disbursement received by a
county directly from the Federal Government for rental
assistance through the Consolidated Appropriations Act, 2021
shall be deducted from the amount calculated under paragraph
(4).
(d) Human Services Block Grant Program.--Funds received by a
county under the program may not be included in the calculation
of the allocation of funds under the Human Services Block Grant
Program under section 1405-B of the Human Services Code.
(e) Reduction of obligations.--Any payments received by the
landlord or a utility service provider from a payment made under
this section shall be used to reduce the amount of the tenant's
obligation to the landlord or utility service provider. A
landlord or utility service provider shall not be required to
waive any outstanding obligations for rent or utility payments
as a condition to participate in the program. If a landlord or
utility service provider refuses to participate in the program,
a payment received by an individual must be forwarded to the
landlord or utility service provider to reduce the tenant's
obligation.
(E) REDUCTION OF OBLIGATIONS.--THE FOLLOWING SHALL APPLY:
(1) ANY PAYMENTS RECEIVED BY THE LANDLORD OR A UTILITY
SERVICE PROVIDER FROM A PAYMENT MADE UNDER THIS SECTION SHALL
BE USED TO REDUCE THE AMOUNT OF THE TENANT'S OBLIGATION TO
THE LANDLORD OR UTILITY SERVICE PROVIDER.
(2) A LANDLORD OR UTILITY SERVICE PROVIDER SHALL NOT BE
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REQUIRED TO WAIVE ANY OUTSTANDING OBLIGATIONS FOR RENT OR
UTILITY PAYMENTS AS A CONDITION TO PARTICIPATE IN THE
PROGRAM.
(3) EXCEPT AS PROVIDED UNDER PARAGRAPH (4), AMOUNTS
PROVIDED FOR RENT, RENTAL ARREARS, UTILITIES AND HOME ENERGY
COSTS AND UTILITY AND HOME ENERGY COSTS ARREARS SHALL BE MADE
TO THE LESSOR OR UTILITY ON BEHALF OF AN APPLICANT.
(4) IF A LANDLORD OR UTILITY SERVICE PROVIDER REFUSES TO
PARTICIPATE IN THE PROGRAM, A PAYMENT RECEIVED BY AN
INDIVIDUAL MUST BE FORWARDED TO THE LANDLORD OR UTILITY
SERVICE PROVIDER TO REDUCE THE TENANT'S OBLIGATION.
(f) Transfer prohibited.--The department shall use funding
from the program only for the purpose of services provided under
subsection (a) provided for under the Consolidated
Appropriations Act, 2021. The funding may not be transferred to
other programs within the department.
Section 103-D. Department.
(a) Powers and duties.--The department shall have the power
and duty to:
(1) Implement and administer the program in accordance
with Federal law. The department shall compile and transmit
any information necessary to implement the program and comply
with programmatic and eligibility requirements under Federal
law and Federal guidance. The department is prohibited from
placing any additional stipulations on counties that are in
addition to THIS ARTICLE, Federal law or Federal guidance. If
a county fails to participate in the program or if funds are
not expended within the time requirements of this article,
the department may administer the services of the program.
(2) Monitor county governments' administration of the
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grant to ensure compliance with Federal and State
requirements.
(3) Allocate and disburse grant funds to counties.
(4) Require counties to submit reports containing
information REQUIRED BY THE DEPARTMENT AND AS NECESSARY FOR
COMPLIANCE WITH THE CONSOLIDATED APPROPRIATIONS ACT, 2021 in
the form and by the deadline prescribed by the department.
The department shall develop an application to participate in
the program.
(5) Monitor, inspect or audit the financial, operating
and accounting records of a county agency or contracted
entity that receives grant funds, if deemed necessary by the
department.
(6) Withhold, recover or reduce grant funds of a county
agency or contracted entity determined to have administered
the program in violation of Federal or State requirements.
(7) Recoup and reallocate unobligated grant funds as
identified by the county of a county agency or contracted
entity, as provided under section 105-D. The reallocation
shall be based upon the counties that identified a shortfall
and prorated based upon the 2019 census population to the
extent of a county's identified shortfall.
(7.1) PREPARE A MONTHLY CONSOLIDATED REPORT WITH
INFORMATION FROM ALL COUNTIES SUBMITTED UNDER SECTION 104-
D(4) AND SHALL SUBMIT THE REPORT ON A MONTHLY BASIS TO THE
CHAIRPERSON AND MINORITY CHAIRPERSON OF THE APPROPRIATIONS
COMMITTEE OF THE SENATE AND THE CHAIRPERSON AND MINORITY
CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF
REPRESENTATIVES. THE REPORT SHALL ALSO BE POSTED AND
MAINTAINED ON THE DEPARTMENT'S PUBLICLY ACCESSIBLE INTERNET
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WEBSITE.
(8) By March 31, 2022, the depart ment shall issue a
report to the chairperson and minority chairperson of the
Appropriations Committee of the Senate and the chairperson
and minority chairperson of the Appropriations Committee of
the House of Representatives and shall post the report to the
department's publicly accessible website. The report shall
include the following information:
(i) The total amount of funds received by a county.
(ii) The total amount of funds spent by a county by
services under section 102-D(a).
(iii) The total amount of excess funding or
shortfall identified by a county as of December 31, 2021.
(iv) The total number of households that applied for
assistance.
(v) The total number of households that received
assistance.
(vi) The total amount of funding sought by services
under section 102-D(a).
(vii) The total amount of assistance provided by
services under section 201-D(a) 102-D(A) .
(VIII) AN ITEMIZATION OF ALL EXPENDITURES FOR
ADMINISTRATIVE COSTS.
(b) Costs.--To the extent permitted by Federal law, the
department may utilize an amount not to exceed 1% of the amount
appropriated to cover the costs associated with the
administration of the program.
Section 104-D. Counties.
The local county officials of each county government
participating in the program shall have the power and duty to:
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(1) Administer and disburse grant funds for the
provision of rental and utility assistance and housing
stability services in accordance with this article,
information from the department and Federal requirements.
(2) Establish or maintain, in agreement with another
county, local collaborative arrangements for the delivery of
rental and utility assistance and housing stability services.
(3) Determine and redetermine, in accordance with the
information provided by the department, whether a person is
eligible to participate in the program, subject to appeal
under 2 Pa.C.S. Ch. 5 Subch. B (relating to practice and
procedures of local agencies).
(4) Submit monthly reports which include identified
excess or insufficient funding and be subject to audit as
determined by the department.
(4) SUBMIT MONTHLY REPORTS, WHICH SHALL INCLUDE
IDENTIFIED EXCESS OR INSUFFICIENT FUNDING AND AN ITEMIZATION
OF EXPENDITURES FOR ADMINISTRATIVE COSTS. THE REPORTS SHALL
BE SUBJECT TO AUDIT AS DETERMINED BY THE DEPARTMENT.
Section 105-D. Reallocation of grants.
(a) Obligated funds.--Counties must certify to the
department by