State Municipal Assistance for Response and Transition Act or the SMART Act
This bill provides $500 billion for a Coronavirus Local Community Stabilization Fund to address the economic effects of the COVID-19 (i.e., coronavirus disease 2019) pandemic on state, local, and tribal budgets. The bill also expands the uses of payments from the Coronavirus Relief Fund.
The bill allows a jurisdiction to use funding from the Coronavirus Local Community Stabilization Fund or Coronavirus Relief Fund for (1) necessary expenditures related to COVID-19 that were not accounted for in the jurisdiction's budget, including the nonfederal share contribution requirement for disaster or emergency assistance; or (2) expenditures the jurisdiction would otherwise be unable to make because of decreased or delayed revenues. Funding from the Coronavirus Local Community Stabilization Fund may be used for expenditures through 2022.
The bill (1) reserves specified funds for payments to tribal governments; (2) apportions funds to states based on population, infected population, and revenue lost; (3) provides for payments to counties and municipalities based on lost revenue.
The bill conditions funding on each state agreeing to fair and equitable budgeting based on need.
The Office of Inspector General of the Department of the Treasury may use amounts appropriated to carry out oversight and recoupment activities under this bill.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3752 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 3752
To amend title VI of the Social Security Act to establish a Coronavirus
Local Community Stabilization Fund.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 18, 2020
Mr. Menendez (for himself, Mr. Cassidy, Mrs. Hyde-Smith, Ms. Collins,
Mr. Manchin, and Mr. Booker) introduced the following bill; which was
read twice and referred to the Committee on Banking, Housing, and Urban
Affairs
_______________________________________________________________________
A BILL
To amend title VI of the Social Security Act to establish a Coronavirus
Local Community Stabilization Fund.
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 ``State Municipal Assistance for
Response and Transition Act'' or the ``SMART Act''.
SEC. 2. CORONAVIRUS LOCAL COMMUNITY STABILIZATION FUND.
(a) In General.--Title VI of the Social Security Act, as added by
section 5001(a) of the Coronavirus Aid, Relief, and Economic Security
Act (Public Law 116-136), is amended by adding at the end the
following:
``SEC. 602. CORONAVIRUS LOCAL COMMUNITY STABILIZATION FUND.
``(a) Appropriation.--
``(1) In general.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated for making payments to States under this section,
$500,000,000,000 for fiscal year 2020, to remain available
until expended.
``(2) Reservation of funds.--Of the amount appropriated
under paragraph (1), the Secretary shall reserve
$16,000,000,000 of such amount for making payments to Tribal
governments under subsection (c)(7).
``(b) Authority To Make Payments.--
``(1) In general.--The Secretary shall pay each State the
following amounts:
``(A) Not later than 30 days after the date of
enactment of this section, the relative population
proportion amount determined for the State under
subsection (c)(1).
``(B) Not later than 30 days after the date of
enactment of this section, the relative infected
population proportion amount determined for the State
under subsection (c)(2).
``(C) As soon as practicable after December 31,
2020, the relative lost revenue proportion amount
determined for the State under subsection (c)(3).
``(2) Amounts reserved for payments to local governments.--
A State shall reserve \1/3\ of each amount received by the
State under paragraph (1) to make direct payments to units of
local government in the State under subsection (c)(6).
``(c) Payment Amounts.--
``(1) Relative population proportion amount.--Subject to
paragraph (5), the relative population proportion amount for a
State is the product of--
``(A) $161,333,333,333; and
``(B) the amount equal to the quotient of--
``(i) the population of the State; and
``(ii) the total population of all States.
``(2) Relative infected population proportion amount.--
Subject to subparagraph (5), the relative infected population
proportion amount determined under this paragraph for a State
is the product of--
``(A) $161,333,333,333; and
``(B) the quotient of--
``(i) the cumulative population of the
State that has been infected with Coronavirus
Disease 2019 (COVID-19) as of June 1, 2020
(including individuals who were infected and
have recovered as of such date); and
``(ii) the total cumulative population of
all States that has been infected with
Coronavirus Disease 2019 (COVID-19) as of such
date (including individuals who were infected
and have recovered as of such date).
``(3) Relative lost revenue proportion amount.--The
relative lost revenue proportion amount determined under this
paragraph for a State is the product of--
``(A) $161,333,333,333; and
``(B) the quotient of--
``(i) the lost revenue amount determined
for the State under paragraph (4); and
``(ii) the sum of the lost revenue amounts
determined for all States under paragraph (4).
``(4) Lost revenue amount.--
``(A) In general.--For purposes of paragraph (3),
with respect to a State, the lost revenue amount is the
amount equal to the amount by which--
``(i) the amount of revenue from taxes or
other sources for the State for calendar year
2019; exceeds
``(ii) subject to subparagraph (B), the
amount of revenue from taxes or other sources
for the State for calendar year 2020 (as
certified by the Governor of the State).
``(B) Adjustments to lost revenue amount.--For
purposes of subparagraph (A)(ii), the amount of revenue
from taxes or other sources for a State and calendar
year 2020 shall be adjusted in the following manner:
``(i) Such amount shall exclude any funds
received by the State in calendar year 2020
under this title.
``(ii) Such amount shall be increased by
the amount of any reduction to State revenue
from taxes or other sources for calendar year
2020 that results from the State--
``(I) enacting a tax cut, rebate,
deduction, or credit; or
``(II) reducing, delaying, or
eliminating any fee or other source of
revenue.
``(iii) Such amount shall be reduced by the
amount of any expenditures made by the State
during calendar year 2020 necessary to meet the
non-Federal share contribution requirement of
any public assistance that is provided under
the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et
seq.) on the basis of a disaster or emergency
declaration under such Act that--
``(I) is declared during the period
beginning on January 1, 2020, and
ending on the date of enactment of this
section; and
``(II) is not related to the COVID-
19 pandemic.
``(5) Combined minimum payment amount for relative
population and relative infected population amounts.--
``(A) In general.--The sum of the amounts
determined under paragraphs (1) and (2) for a State
described in subparagraph (C) shall not be less than
$2,000,000,000.
``(B) Pro rata adjustments.--The Secretary shall
adjust on a pro rata basis the amounts determined under
paragraph (2) for each State described in subparagraph
(C) to the extent necessary to comply with the
requirement of subparagraph (A).
``(C) States described.--The States described in
this subparagraph are each of the 50 States, the
District of Columbia, and Puerto Rico.
``(6) Direct payments to units of local government.--Not
later than 15 days after a State receives a payment under
paragraph (1) of subsection (b), the State shall make the
following payments from the amount reserved by the State under
paragraph (2) of that subsection with respect to such State
payment:
``(A) Direct payments to counties and
municipalities based on population.--From each of the
amounts reserved by a State under paragraph (2) of
subsection (b) with respect to the payments received by
the State under subparagraphs (A) and (B) of paragraph
(1) of that subsection, the State shall pay to each
unit of local government in the State that is a county
or a municipality an amount equal to the product of--
``(i) 50 percent of the amount so reserved;
and
``(ii) the quotient of--
``(I) the population of the county
or municipality (as applicable); and
``(II) the total population of--
``(aa) in the case of a
county, all counties in the
State; or
``(bb) in the case of a
municipality, all
municipalities in the State.
``(B) Direct payments to counties and
municipalities based on lost revenue.--From the amount
reserved by a State under paragraph (2) of subsection
(b) with respect to the payment received by the State
under subparagraph (C) of paragraph (1) of that
subsection, the State shall pay to each unit of local
government in the State that is a county or a
municipality an amount equal to the product of--
``(i) 50 percent of the amount so reserved;
and
``(ii) the quotient of--
``(I) the lost revenue amount
determined for the county or
municipality (as applicable) under
subparagraph (C); and
``(II) the total lost revenue
amounts determined under subparagraph
(C) for--
``(aa) in the case of a
county, all counties in the
State; or
``(bb) in the case of a
municipality, all
municipalities in the State.
``(C) Lost revenue amount.--For purposes of
subparagraph (B), with respect to a county or
municipality, the lost revenue amount shall be
determined in the same manner as the lost revenue
amount for a State is determined under paragraph (4).
``(7) Payments to tribal governments.--The amounts paid
under this section to Tribal governments from the amount
reserved under subsection (a)(2) shall be paid not later than
30 days after the date of enactment of this section, and shall
be determined in the same manner as the amounts paid to Tribal
governments under section 601(c)(7) except that, for purposes
of this section--
``(A) the term `Tribal government' means the
governing body of an Indian Tribe included on the most
recent list published by the Secretary pursuant to
section 104 of the Federally Recognized Indian Tribe
List Act of 1994 (25 U.S.C. 5131); and
``(B) the term `Indian Tribe' has the meaning given
that term in section 102 of such Act (25 U.S.C. 5130),
except that such term shall not include an Alaska
Native regional or village corporation established
pursuant to the Alaska Native Claims Settlement Act (43
U.S.C. 1601 et seq.).
``(8) Data.--For purposes of this subsection--
``(A) the population of States, units of local
governments, and Indian Tribes shall be determined
based on the most recent year for which data are
available from the Bureau of the Census;
``(B) the determination of the populations of
States infected with COVID-19 shall be based on data
from the Centers for Disease Control and Prevention;
and
``(C) where Indian Tribal population cannot be
readily determined by the most recent year for which
data are available from the Bureau of the Census, the
Department may consider tribal population data from the
Department of Interior or Department of Housing and
Urban Development.
``(d) Use of Funds.--
``(1) In general.--Amounts paid or distributed under this
subsection shall be used--
``(A) to cover only those costs of the State, unit
of local government, or Tribal government that--
``(i) are necessary expenditures incurred
due to the public health emergency with respect
to the Coronavirus Disease 2019 (COVID-19)
(including expenditures necessary to meet the
non-Federal share contribution requirement of
any public assistance that is provided under
the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et
seq.) on the basis of a disaster or emergency
declaration under such Act that is declared in
calendar year 2020;
``(ii) were not accounted for in the budget
most recently approved as of March 27, 2020,
for the State or local government; and
``(iii) were incurred during the period
that begins on March 1, 2020, and ends on
December 31, 2022; or
``(B) for expenditures in calendar year 2020, 2021,
or 2022 that the State, Tribal government, or unit of
local government would otherwise be unable to make
because of decreased or delayed revenues.
``(2) Limitation.--No State may use funds made available
under this section for deposit into any State pension fund.
``(e) Fair and Equitable Budgeting Requirement.--As a condition for
receiving amounts paid under this subsection, each State, to the extent
allowable by State law, shall agree--
``(1) to base any cut to funding to units of local
government under the State budget on emergency need, and shall
ensure that such cuts are balanced to ensure all units of local
government are treated fairly;
``(2) to primarily use economic conditions, budgetary
shortfall, and revenue loss for each respective county and
municipality, as compared to 2019 levels, to determine whether
any such cut is balanced and appropriate; and
``(3) that the State legislative body shall have the
authority to disapprove such a cut if it violates a condition
of paragraph (1) or (2).
``(f) Application of Other Provisions.--
``(1) Definitions.--
``(A) In general.--Except as otherwise provided in
this paragraph and subsection (c)(7), the terms used in
this section have the meanings given those terms in
subsection (g) of section 601.
``(B) County.--The term `county' means a county,
parish, or other equivalent county division (as defined
by the Bureau of the Census).
``(C) Unit of local government.--In this section,
the term `unit of local government' means a county,
municipality, town, township, village, parish, borough,
or other unit of general government below the State
level.
``(2) Oversight.--The amounts paid under this section--
``(A) shall be subject to the oversight
requirements of subsection (f) of section 601 in the
same manner as such requirements apply to the amounts
paid under that section, and the recoupment authority
under paragraph (2) of that subsection shall apply to
oversight of compliance with the use of funds
requirements of subsection (d) of this section and the
fair and equitable budgeting requirements of subsection
(e) of this section; and
``(B) shall be distributed in accordance with all
applicable Federal laws.
``(3) IG funding authority.--Notwithstanding section
601(f)(3), the Inspector General of the Department of the
Treasury may use the amounts appropriated under that section to
carry out oversight and recoupment activities under this
section in addition to the oversight and recoupment activities
carried out under section 601(f).''.
(b) Conforming Amendments.--Section 601(d) of title VI of the
Social Security Act, as added by section 5001(a) of the Coronavirus
Aid, Relief, and Economic Security Act (Public Law 116-136), is
amended--
(1) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively, and adjusting the
margins accordingly;
(2) in subparagraph (A) (as so redesignated), by inserting
``(including expenditures necessary to meet the non-Federal
share contribution requirement of any public assistance that is
provided under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et seq.) on the basis
of a disaster or emergency declaration under such Act that is
declared in calendar year 2020)'' before the semicolon;
(3) in subparagraph (C) (as so redesignated), by striking
the period at the end and inserting ``; and'';
(4) by striking ``under this section to cover only'' and
inserting ``under this section--
``(1) to cover only--''; and
(5) by adding at the end the following new paragraph:
``(2) for expenditures in calendar year 2020, 2021, or 2022
that the State, Tribal government, or unit of local government
would otherwise be unable to make because of decreased or
delayed revenues.''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 116-319.
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