Sec. 401. Expansion of allowable use of Coronavirus Relief Fund payments by States and Tribal and Local Governments
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/bill/116/s/4318/is/section-401A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 601(d) of the Social Security Act ( 42 U.S.C. 801(d) ) is amended to read as follows: A State, Tribal government, or unit of local government shall use the funds provided under a payment made under this section only for the following purposes: During the period that begins on March 1, 2020, and ends on September 30, 2021 (or, in the case of a State or government described in clause
(iii)of subparagraph (B), the date determined for the State or government under such clause), to pay costs of the State, Tribal government, or unit of local government that— are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19); and were not accounted for in the budget most recently approved as of March 27, 2020, for the State or government. Subject to clause (iv), during the period that begins on March 1, 2020, and ends on September 30, 2021 (or, in the case of a State or government described in clause (iii), the date determined for the State or government under such clause), to fund operations of the State or government if the State or government— has a revenue shortfall amount for the State or government fiscal year for 2020 or 2021; and certifies to the Secretary that the State or government has distributed at least 25 percent of the total amount of the payments received by the State or government under this section to localities within the jurisdiction of the State or government or that there are no localities within the jurisdiction of the State or government. For purposes of this subparagraph, the revenue shortfall amount for a State or government and a State or government fiscal year is the amount, if any, by which— the total amount of State or government revenue from taxes, fees, or sources other than funds provided under a payment made under this section or another intergovernmental transfer of funds from the Federal Government collected for such fiscal year; is less than the total amount of such revenue collected for the State or government fiscal year for 2019. In the case of a State or government that has a fiscal year for 2021 that ends after June 30, 2021, the date determined for such State or government under this clause is the date that is 90 days after the last day of the State or government fiscal year for 2021. The amount of funds paid to or distributed to a State, Tribal government, or unit of local government under this section that may be used by the State or government for the purpose permitted under clause
(i)shall not exceed the lesser of— 25 percent of the total amount of such funds; and the sum of the revenue shortfall amounts determined for the State or government for fiscal years 2020 and 2021 under clause (ii). No State, Tribal government, or unit of local government may use funds provided under a payment made under this section for any of the following purposes: To make a deposit into, or reimburse, any State or government fund that finances pensions or other postemployment benefits for current or former employees of the State or government. To satisfy any obligation or liability of the State or government with respect to a pension or other postemployment benefit fund, plan, or program for current or former employees of the State or government. To augment any amount paid, or benefit provided under, a pension or other postemployment benefit fund, plan, or program for current or former employees of the State or government. To make a deposit into, or reimburse a withdrawal from, a budget stabilization fund, budget reserve account, or other rainy day or reserve fund of the State or government established to provide a source of funding for operations of the State or government during a revenue downturn or other unanticipated shortfall and accounted for in the budget most recently approved as of March 27, 2020, for the State or government. To participate in litigation in which an officer of the State or government is a party in the officer's personal capacity. To undertake to— influence the passage or defeat of any legislation by the Congress of the United States, or by any State or local legislative body; or improve the public image of an officer of the State or government. In accordance with guidance from the Secretary issued before, on, or after the date of enactment of the American Workers, Families, and Employers Assistance Act ), any amount from a payment made under this section to a State, Tribal government, or unit of local government that is distributed by such entity to a unit of general local government below the level of such entity shall supplement, and not supplant, any non-Federal funds that such entity would otherwise provide, distribute, or use for assistance to such unit of general local government. Funds paid or distributed to a State, Tribal government, or unit of local government under this section that are obligated for an allowable use under paragraph
(1)before October 1, 2021 (or, in the case of a State or government described in clause
(iii)of subparagraph
(B)of such paragraph, the day after the date determined for the State or government under such clause), shall remain available until expended. The allowable and prohibited uses of funds, maintenance of effort, and availability rules that apply to funds provided under a payment made under this section to a State, Tribal government, or unit of local government, and all other limitations or restrictions which apply to such funds, shall apply in the same manner and to the same extent to any funds from such payment which a State or government distributes to a locality. A State, Tribal government, or unit of local government shall not impose any condition, requirement, or restriction on a distribution to a locality of funds provided to the State or government under a payment made under this section other than as necessary to ensure the locality uses the funds distributed in accordance with the limitations, restrictions, and requirements applicable under subparagraph (A). . Section 601 of such Act is further amended— in subsection (f)— by redesignating paragraphs
(3)and
(4)as paragraphs
(4)and (5), respectively; and by inserting after paragraph
(2)the following new paragraph: In determining whether to conduct an audit of the use of funds paid to a State, Tribal government, or unit of local government under this section (including any such funds distributed to a locality), the Inspector General of the Department of the Treasury shall prioritize auditing States or governments that— have not distributed at least 25 percent of the total amount of the payments received by the State or government under this section to localities within the jurisdiction of the State or government, if any; or have imposed a condition, requirement, or restriction on funds distributed to a locality which the Inspector General has reason to believe violates subsection (d)(5)(B). . in subsection (g)— by redesignating paragraphs
(3)through
(5)as paragraphs
(5)through (7), respectively; and by inserting after paragraph
(2)the following new paragraphs: The term locality means, with respect to a State, Tribal government, or unit of local government, a county, municipality, town, township, village, parish, borough, or other unit of general government below the level of the State, Tribal government, or unit of local government (as applicable) with a population of 500,000 or less. The term other postemployment benefits includes postemployment health care benefits, regardless of the type of plan that provides them, and all postemployment benefits provided separately from a pension plan, excluding benefits defined as termination offers and benefits. . The amendments made by this section shall take effect as if included in the enactment of section 601 of the Social Security Act, as added by section 5001(a) of the CARES Act ( Public Law 116–136 ).
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Sec. 401
Expansion of allowable use of Coronavirus Relief Fund payments by States and Tribal and Local Governments
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