Health and Fitness Recovery Act of 2020
This bill establishes through December 31, 2020, and provides funding for the Health Club Recovery Fund, from which the Department of the Treasury shall make grants to eligible health and fitness facilities to provide relief during the COVID-19 (i.e.,coronavirus disease 2019) pandemic.
For the grant program's initial period, Treasury must (1) prioritize awarding grants to entities serving marginalized and underrepresented communities, and (2) only award grants to eligible health and fitness facilities with annual revenues of less than $1.5 million. Further, an entity that received a loan under the Paycheck Protection Program established to support small businesses in response to COVID-19 may not apply for or use grant amounts for the same expenses for which it received the paycheck protection loan. Allowable uses for grant amounts include payroll costs, mortgage or rent payments, utilities, and maintenance expenses.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8485 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 8485
To establish a $30,000,000,000 Health Club Recovery Fund to provide
structured relief to health and fitness service establishments through
December 31, 2020, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 1, 2020
Mr. Fitzpatrick (for himself and Mr. Quigley) introduced the following
bill; which was referred to the Committee on Financial Services, and in
addition to the Committees on Ways and Means, and the Budget, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To establish a $30,000,000,000 Health Club Recovery Fund to provide
structured relief to health and fitness service establishments through
December 31, 2020, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Health and Fitness Recovery Act of
2020''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Affiliated business.--The term ``affiliated business''
means a business in which an eligible entity has an equity or
right to profit distributions of not less than 50 percent, or
in which an eligible entity has the contractual authority to
control the direction of the business, provided that such
affiliation shall be determined as of any arrangements or
agreements in existence as of March 13, 2020.
(2) Covered period.--The term ``covered period'' means the
period beginning on February 15, 2020, and ending on December
31, 2020.
(3) Eligible entity.--The term ``eligible entity''--
(A) subject to subparagraph (B), means a health
club, health or fitness studio, fitness center, gym, or
fitness or health spa; and
(B) does not include an entity that is, or is part
of, a governmental facility.
(4) Fund.--The term ``Fund'' means the Health Club Recovery
Fund established under section 3.
(5) Payroll costs.--The term ``payroll costs'' has the
meaning given the term in section 7(a)(36)(A) of the Small
Business Act (15 U.S.C. 636(a)(36)(A)).
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
SEC. 3. HEALTH CLUB RECOVERY FUND.
(a) In General.--There is established in the Treasury of the United
States a fund to be known as the Health Club Recovery Fund.
(b) Appropriations.--
(1) In general.--There is appropriated to the Fund, out of
amounts in the Treasury not otherwise appropriated,
$30,000,000,000, to remain available until December 31, 2020.
(2) Remainder to treasury.--Any amounts remaining in the
Fund after December 31, 2020, shall be deposited in the general
fund of the Treasury.
(c) Use of Funds.--The Secretary shall use amounts in the Fund to
make grants described in section 4.
SEC. 4. HEALTH CLUB RECOVERY GRANTS.
(a) In General.--The Secretary shall award grants to eligible
entities to provide relief to such entities during the COVID-19
pandemic.
(b) Application.--
(1) In general.--An eligible entity desiring a grant under
this section shall submit to the Secretary an application at
such time, in such manner, and containing such information as
the Secretary may require.
(2) Certification.--An eligible entity applying for a grant
under this section shall make a good faith certification--
(A) that the uncertainty of current economic
conditions makes necessary the grant request to support
the ongoing operations of the eligible entity;
(B) acknowledging that funds will be used to retain
workers and maintain payroll or for other allowable
expenses described in subsection (e);
(C) that the eligible entity does not have an
application pending for a grant under subsection
(a)(36) or (b)(2) of section 7 of the Small Business
Act (15 U.S.C. 636) for the same purpose and
duplicative of amounts applied for or received under
this section; and
(D) that, during the covered period, the eligible
entity has not received amounts under subsection
(a)(36) or (b)(2) of section 7 of the Small Business
Act (15 U.S.C. 636) for the same purpose and
duplicative of amounts applied for or received under
this section.
(3) Hold harmless.--The Secretary shall not reduce the
amount of a grant to an eligible entity under this section, or
otherwise penalize such eligible entity, on the basis of the
eligible entity having failed to hire or rehire employees
contrary to assurances made by the eligible entity in its grant
application, so long as the eligible entity is able to
document--
(A) an inability to rehire individuals who were
employees of the eligible entity on February 15, 2020;
and
(B) an inability to hire similarly qualified
employees for unfilled positions on or before December
31, 2020.
(c) Priority in Awarding Grants.--
(1) In general.--Subject to paragraph (2), the Secretary
shall award grants to eligible entities under subsection (a) in
the order in which completed applications are received by the
Secretary in accordance with this section.
(2) Priority.--During the initial 14-day period in which
the Secretary awards grants under this section, the Secretary
shall--
(A) prioritize awarding grants to eligible entities
serving marginalized and underrepresented communities,
with a focus on women-, veteran-, and minority-owned
and operated eligible entities serving such
communities; and
(B) only award grants to eligible entities with
annual revenues of less than $1,500,000.
(d) Grant Amount.--
(1) Aggregate maximum amount.--The aggregate amount of
grants made to an eligible entity and any affiliate businesses
of the eligible entity under this section shall not exceed the
lesser of--
(A) $10,000,000; or
(B) 10 percent of the sum of the annual revenues of
the eligible entity and all affiliate businesses of the
eligible entity for the calendar year preceding the
award of the grant.
(2) Determination of grant amount.--
(A) In general.--The amount of a grant made to an
eligible entity under this section shall be based on
the difference in revenues or estimated revenues of the
eligible entity during a calendar quarter in 2020
selected by the eligible entity as compared to 95
percent of the revenues of the eligible entity in the
same calendar quarter in 2019.
(B) Verification.--An eligible entity shall submit
to the Secretary such revenue verification
documentation as the Secretary may require to determine
the amount of a grant under subparagraph (A).
(C) Repayment.--Any amount of a grant made under
this section to an eligible entity based on estimated
revenues in a calendar quarter in 2020 that is above
the actual revenues of the eligible entity during that
calendar quarter shall be converted to a loan that
has--
(i) an interest rate of 1 percent; and
(ii) a maturity date of 10 years beginning
on January 1, 2021.
(3) No duplication of benefits.--An eligible entity that
received a loan under section 7(a)(36) of the Small Business
Act (15 U.S.C. 636(a)(36)) may not apply for or use grant
amounts under this section for the same expenses for which the
eligible entity received the loan.
(4) Limitation.--An eligible entity may not receive more
than 1 grant under this section.
(e) Use of Funds.--
(1) Allowable uses.--During the covered period, an eligible
entity that receives a grant under this section may use the
grant funds for--
(A) payroll costs;
(B) payments of principal or interest on any
mortgage obligation;
(C) rent payments, including rent under a lease
agreement;
(D) utilities;
(E) maintenance expenses, including construction or
reconfiguration to accommodate social distancing
requirements;
(F) supplies, including protective equipment and
cleaning materials;
(G) debt obligations to suppliers that were
incurred before the covered period; and
(H) any other expenses that the Secretary
determines to be essential to maintaining the eligible
entity.
(2) Returning funds.--If an eligible entity that receives a
grant under this section permanently ceases operations on or
before December 31, 2020, the eligible entity shall return to
the Treasury any funds that the eligible entity received
through the grant and did not use for the allowable expenses
under paragraph (1).
(3) Conversion to loan.--Any grant amounts received by an
eligible entity under this section that are unused after
December 31, 2020, shall be immediately converted to a loan
with--
(A) an interest rate of 1 percent; and
(B) a maturity date of 10 years.
(f) Taxability.--For purposes of the Internal Revenue Code of
1986--
(1) the amount of a grant awarded to an eligible entity
under this section shall be excluded from the gross income of
the eligible entity;
(2) no deduction shall be denied or reduced, no tax
attribute shall be reduced, and no basis increase shall be
denied, by reason of the exclusion from gross income provided
by paragraph (1); and
(3) an eligible entity that receives a grant under this
section shall not be eligible for the credit described in
section 2301 of the CARES Act (Public Law 116-136).
(g) Regulations.--Not later than 15 days after the date of
enactment of this Act, the Secretary shall issue regulations to carry
out this section without regard to the notice and comment requirements
under section 553 of title 5, United States Code.
(h) Appropriations for Staffing and Administrative Expenses.--
(1) In general.--There is appropriated to the Secretary,
out of amounts in the Treasury not otherwise appropriated,
$200,000,000, to remain available until December 31, 2020, for
staffing and administrative expenses related to administering
grants awarded under this section.
(2) Set aside.--Of amounts appropriated under paragraph
(1), $60,000,000 shall be allocated for outreach to
traditionally marginalized and underrepresented communities,
with a focus on women-, veteran-, and minority-owned and
operated eligible entities, including the creation of a
resource center targeted toward these communities.
SEC. 5. EMERGENCY DESIGNATION.
(a) In General.--The amounts provided by this Act are designated as
an emergency requirement pursuant to section 4(g) of the Statutory Pay-
As-You-Go Act of 2010 (2 U.S.C. 933(g)).
(b) Designation in Senate.--In the Senate, this Act is designated
as an emergency requirement pursuant to section 4112(a) of H. Con. Res.
71 (115th Congress), the concurrent resolution on the budget for fiscal
year 2018.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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