Local News and Emergency Information Act of 2020

II 116TH CONGRESS 2D SESSION S. 3718 To expand the waiver of affiliation rules for certain business concerns with more than 1 physical location, and for other purposes. IN THE SENATE OF THE UNITED STATES MAY 13, 2020 Ms. CANTWELL (for herself, Mr. BOOZMAN, Ms. KLOBUCHAR, Ms. ERNST, and Mr. SCHUMER) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To expand the waiver of affiliation rules for certain business concerns with more than 1 physical location, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Local News and Emer- 4 gency Information Act of 2020’’. 5 SEC. 2. AMENDMENTS TO THE PAYCHECK PROTECTION 6 PROGRAM. 7 Section 7(a)(36)(D) of the Small Business Act (15 8 U.S.C. 636(a)(36)(D)) is amended— 9 VerDate Sep 11 2014 21:11 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3718.IS S3718 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 3718 IS (1) in clause (iii)— 1 (A) by striking ‘‘business concern that em- 2 ploys’’ and inserting the following: ‘‘business 3 concern that— 4 ‘‘(I) employs’’; 5 (B) in subclause (I), by striking the period 6 at the end and inserting ‘‘; or’’; and 7 (C) by adding at the end the following: 8 ‘‘(II) is assigned a North Amer- 9 ican Industry Classification System 10 code beginning with 511110, 515112, 11 or 515120 at the time of disbursal 12 shall be eligible to receive a covered 13 loan for business expenses of the busi- 14 ness concern that are associated with 15 an individual physical location of that 16 business concern, provided that— 17 ‘‘(aa) the proceeds of the 18 loan are used to support expenses 19 associated with the continued 20 provision of local news, informa- 21 tion, content, or emergency infor- 22 mation; and 23 ‘‘(bb) at the time of dis- 24 bursal, the individual physical lo- 25 VerDate Sep 11 2014 21:11 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3718.IS S3718 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 3718 IS cation does not exceed the size 1 standard established by the Ad- 2 ministrator for the applicable 3 code.’’; 4 (2) in clause (iv)— 5 (A) in subclause (II), by striking ‘‘and’’ at 6 the end; 7 (B) in subclause (III), by striking the pe- 8 riod at the end and inserting ‘‘; and’’; and 9 (C) by adding at the end the following: 10 ‘‘(IV) an individual physical loca- 11 tion of a business concern that, as of 12 the date on which the covered loan is 13 disbursed, is assigned a North Amer- 14 ican Industry Classification System 15 code beginning with 511110, 515112, 16 or 515120 and does not exceed the 17 size standard established by the Ad- 18 ministrator for the applicable code, 19 provided that, as a condition of the 20 waiver under this subclause, the busi- 21 ness concern shall not pay, distribute, 22 or otherwise provide the covered loan 23 or any portion of the covered loan to 24 any other entity other than the indi- 25 VerDate Sep 11 2014 21:11 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3718.IS S3718 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 3718 IS vidual physical location that is the in- 1 tended recipient of the covered loan.’’; 2 and 3 (3) by adding at the end the following: 4 ‘‘(vii) TREATMENT OF CERTAIN BUSI- 5 NESS CONCERNS.— 6 ‘‘(I) IN GENERAL.—A business 7 concern that is assigned a North 8 American Industry Classification Sys- 9 tem Code beginning with 511110, 10 515112, or 515120 at the time of dis- 11 bursal of a covered loan and is a 12 franchisee or affiliate of or owned or 13 controlled by a parent company or an 14 investment company, or management 15 thereof, shall be treated as an inde- 16 pendent, non-affiliated entity upon 17 certification to the Administrator that 18 the request for the covered loan is 19 necessary to support expenses associ- 20 ated with the continued provision of 21 local news, information, content, or 22 emergency information. 23 ‘‘(II) REPORT.—The Adminis- 24 trator and the Secretary of the Treas- 25 VerDate Sep 11 2014 21:11 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3718.IS S3718 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 3718 IS ury shall submit to the Committee on 1 Small Business and Entrepreneurship 2 of the Senate, the Committee on 3 Small Business of the House of Rep- 4 resentatives, and the Congressional 5 Oversight Commission established 6 under section 4020 of division B of 7 the CARES Act (Public Law 116– 8 136) a report regarding covered loans 9 made to business concerns described 10 in subclause (I).’’. 11 Æ VerDate Sep 11 2014 21:11 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S3718.IS S3718 pamtmann on DSKBC07HB2PROD with BILLS