Regular Session 2021-2022 House Bill 2487 P.N. 2935

PRINTER'S NO. 2935

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2487

Session of

2022

INTRODUCED BY MERSKI, BENHAM, MADDEN, HILL-EVANS, HOHENSTEIN,

GUENST, SANCHEZ, MALAGARI, LONGIETTI, DELLOSO, GUZMAN,

SCHLOSSBERG, PARKER, BROOKS, NEILSON, CIRESI AND GAYDOS,

APRIL 5, 2022

REFERRED TO COMMITTEE ON COMMERCE, APRIL 5, 2022

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.," in emergency COVID-19 response, providing for

COVID-19 Start-Up Business Grant Program.

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 a section to read:

Section 135-C. COVID-19 Start-Up Business Grant Program.

(a) County block grants.--From money appropriated by the

General Assembly for the distribution of grants under this

section, each county shall receive an amount equal to the

population proportion amount as determined under paragraph (2).

The following shall apply:

(1) The department shall distribute funding to counties

in accordance with this subsection no later than 21 days

after the effective date of this section.

(2) For the purpose of this subsection, the population

proportion amount shall be determined as follows:

(i) divide the population estimate of the county, as

determined under paragraph (3), by the sum of the

population estimates of all counties; and

(ii) multiply the quotient under subparagraph (i) by

the total amount appropriated by the general assembly for

the distribution of grants under this section.

(3) For the purpose of this subsection, a county's

population shall be equal to the published estimate by the

United States Census Bureau's population estimates program

for calendar year 2019.

(b) COVID-19 Start-Up Business Grant Program.--The county

block grant COVID-19 Start-Up Business Grant Program is

established within the department for the purpose of awarding

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grants under this section. The following shall apply to the

program:

(1) No later than 22 days after the effective date of

this section, each county that receives a grant under this

section shall contract at least one CEDO or CDFI designated

to serve the county to award grants under this section.

(2) Subject to the prohibition under subparagraph (ii),

grants under this section 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 section:

(i) A grant awarded to an eligible applicant may not

exceed $15,000.

(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) Money that is not required to be repaid to

the Federal government under the Cares Act or

Consolidated Appropriations Act, 2021.

(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 under this

section shall be given to an eligible applicant that meets

any of the following:

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(i) The eligible applicant has 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) The eligible applicant was 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.

(iii) The eligible applicant can demonstrate less

than expected earnings for the period beginning after

March 31, 2020, and ending before December 31, 2021.

(5) The following shall apply to applications to receive

grants under this section:

(i) Applications shall be in a form determined by a

county with input from a CEDO or CDFI processing the

application on behalf of a county.

(ii) Applications shall contain documentation as

required by the county.

(iii) Applications shall be available

electronically.

(iv) No later than 45 days after the starting date,

a CEDO or CDFI shall receive and consider applications on

a rolling basis until funding for grants received by the

county under subsection (a) have been completely

expended, or 130 days after the starting date, whichever

occurs first. Upon completely expending the funds

available for grants, a CEDO or CDFI shall notify the

department.

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(6) The following shall apply to reviewing applications

for grants under this section:

(i) No later than 160 days after the starting date,

a CEDO or CDFI shall approve or disapprove applications

for grants.

(ii) Upon approving an application under

subparagraph (i), a CEDO or CDFI shall enter into a grant

agreement with the eligible applicant in order to award

the grant.

(iii) The grant agreement under subparagraph (ii)

shall explain the terms and conditions of the grant,

including the applicable laws of this Commonwealth and

reporting requirements.

(iv) The grant agreement under subparagraph (ii) may

be electronically signed and returned to the CEDO or CDFI

that approved the application.

(7) An eligible applicant or authorized representative

of the eligible applicant that submits an application for a

grant under this section shall certify in good faith to all

of the following:

(i) The eligible applicant has started operations

between January 1, 2020, and December 31, 2021, and if

required, paid income taxes to the Federal Government and

the Commonwealth, 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 had an adverse economic impact on the

eligible applicant, which makes the grant request

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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) The information provided in the application and

all supporting documents and forms are 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 shall

be subject to 18 PA.C.S. § 4904 (relating to unsworn

falsification to uthorities).

(8) The following shall apply to the awarding of grants

under this section:

(i) A CEDO or CDFI may award grants in increments of

$5,000, not to exceed the limitation under paragraph (2)

(i).

(ii) A fully executed grant agreement under

paragraph (6)(ii) shall be required before the

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).

(9) A CEDO or CDFI may charge a fee not to exceed $500

per completed and reviewed application for a grant under this

section. Fees charged under this paragraph shall be deducted

from the total amount of money distributed to the county

under subsection (a) and may not reduce the amount of the

grant awarded to an eligible applicant.

(10) A grant awarded under this section shall be paid to

an eligible applicant no later than 175 days after the

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starting date.

(11) A county that provides grants under this section

shall compile a report, which shall include all of the

following:

(i) A list of each grant awarded.

(ii) The name and address of each grant recipient.

(iii) The amount of the grant and a description of

the financial impact to the grant recipient.

(iv) The name of the CEDO or CDFI that processed the

grant.

(12) A county shall submit the report under paragraph

(11) to the department no later than 200 days after the

starting date.

(13) The department shall prepare a consolidated report

with the information in the reports submitted under paragraph

(12) from all counties and submit the consolidated report to

the chair and minority chair of the Appropriations Committee

of the Senate and the chair and minority chair of the

Appropriations Committee of the House of Representatives no

later than 235 days after the starting date.

(14) The county shall post and maintain the report under

paragraph (11) on the county's publicly accessible Internet

website.

(15) The department shall post and maintain the

consolidated report under paragraph (14) on the department's

publicly accessible Internet website.

(16) A county awarding grants and a CEDO or CDFI

processing grants on behalf of a county under this section

shall provide documentation to the Department of the Auditor

General or the department, upon request, for purposes of an

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audit review.

(17) The department may not impose additional

requirements on counties that are not specified in this

section.

words and phrases 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 the Treasury, is

headquartered in this Commonwealth, is part of the 17-member

Pennsylvania Community Development Financial Institution Network

and primarily provides business loans to low-to-moderate income

individuals and business owners.

"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 (Public Law 116-260, 134 Stat. 1182).

"Department." The Department of Community and Economic

Development of the Commonwealth.

"Economic development organization." Any local development

district, 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." An entity that submits an application

for a grant under this section and meets all of the following:

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(1) The entity is not publicly traded.

(2) The entity began operating between January 1, 2020,

and December 31, 2021.

(3) The entity can demonstrate a loss in earnings due to

COVID-19.

(4) The entity meets all of the following conditions as

of March 1, 2020:

(i) The entity is a retail or personal service

employer within this Commonwealth.

(ii) The entity has no more than 10 full-time

employees.

(iii) If the entity was operating, has gross

receipts for the prior fiscal year that did not exceed

$1,000,000.

"Eligible operating expense." An operating expense,

including a payroll and nonpayroll expense, that is common and

accepted in an eligible applicant's industry, helpful and

appropriate for the eligible applicant's trade or business and

subject to the following limitations:

(1) The operating expense must have been incurred

between March 1, 2020, and December 31, 2021.

(2) For a mortgage obligation, the mortgage must have

been in force before December 31, 2021.

(3) For rent, under lease agreements, the lease

agreement must have been in force before December 31, 2021.

(4) For utility costs, service must have begun before

December 31, 2021.

(5) For the purpose of paragraphs (2) and (3), if an

existing mortgage obligation or lease agreement is in force

before December 31, 2021, and is refinanced or restructured

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after December 31, 2021, the mortgage obligation or lease

agreement is deemed to have been in force before December 31,

2021.

"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 recipient's accounting method,

from whatever source, including from the sales of products or

services, interest, dividends, rents, royalties, fees or

commissions, reduced by returns and allowances. The term does

not include any of the following:

(1) Taxes collected for and remitted to a taxing

authority if included in gross or total income, including

sales or other taxes collected from customers and excluding

taxes levied on an entity or the entity's employees.

(2) Proceeds from transactions between an entity and the

entity's domestic or foreign affiliates.

(3) Amounts collected for another by a travel agent,

real estate agent, advertising agent or conference management

service provider.

"Program." The county block grant COVID-19 Start-Up Business

Grant Program established under subsection (b).

"Starting date." The effective date of this section or the

effective date of an appropriation for distribution of grants

under this section, whichever is later.

Section 2. This act shall take effect in 30 days.

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