Special Districts Provide Essential Services Act

I 116TH CONGRESS 2D SESSION H. R. 7073 To amend the Social Security Act to include special districts in the coronavirus relief fund, to direct the Secretary to include special districts as an eligible issuer under the Municipal Liquidity Facility, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 1, 2020 Mr. GARAMENDI (for himself, Mr. KILMER, Ms. LEE of California, Mrs. NAPOLITANO, Mrs. DEMINGS, Mr. COX of California, Mr. THOMPSON of California, Mr. BERA, Mr. PANETTA, Mr. HASTINGS, Mr. ROUDA, Mr. CRIST, Ms. JACKSON LEE, Mr. SOTO, Mr. CARBAJAL, Mr. TAKANO, Mr. LOWENTHAL, Mr. KHANNA, and Mr. COSTA) introduced the following bill; which was referred to the Committee on Oversight and Reform, and in addition to the Committee on Financial Services, for a period to be subse- quently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Social Security Act to include special districts in the coronavirus relief fund, to direct the Secretary to include special districts as an eligible issuer under the Municipal Liquidity Facility, 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 VerDate Sep 11 2014 07:33 Jun 23, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7073.IH H7073 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 7073 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Special Districts Pro- 2 vide Essential Services Act’’. 3 SEC. 2. INCLUSION OF SPECIAL DISTRICTS IN THE CORO- 4 NAVIRUS RELIEF FUND. 5 (a) IN GENERAL.—Section 601(a) of the Social Secu- 6 rity Act (42 U.S.C. 801(a)) is amended by adding at the 7 end the following new paragraph: 8 ‘‘(3) FUNDS FOR SPECIAL DISTRICTS.—If an 9 amount in excess of $150,000,000,000 is appro- 10 priated for payments made under this section, spe- 11 cial districts shall be eligible for payments out of 12 such excess amount in accordance with subsection 13 (c)(6).’’. 14 (b) AMOUNT FOR SPECIAL DISTRICTS.—Section 15 601(c) of the Social Security Act (42 U.S.C. 801(c)) is 16 amended— 17 (1) by redesignating paragraphs (6) through 18 (8) as paragraphs (7) through (9), respectively; and 19 (2) by inserting after paragraph (5) the fol- 20 lowing new paragraph: 21 ‘‘(6) SPECIAL DISTRICTS.—If a portion of any 22 excess amount described in subsection (a)(3) is allo- 23 cated to a State, such State shall allocate at least 24 5 percent of that amount for special districts in that 25 State for distribution at such State’s discretion, not 26 VerDate Sep 11 2014 07:33 Jun 23, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7073.IH H7073 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 7073 IH later than 60 days after such State has received 1 such funds.’’. 2 (c) DEFINITION OF SPECIAL DISTRICT.—Section 3 601(g) of the Social Security Act (42 U.S.C. 801(g)) is 4 amended— 5 (1) by redesignating paragraphs (4) through 6 (5) as paragraphs (5) through (6), respectively; and 7 (2) by inserting after paragraph (3) the fol- 8 lowing new paragraph: 9 ‘‘(4) SPECIAL DISTRICT.—The term ‘special dis- 10 trict’ means a political subdivision, formed pursuant 11 to general law or special act of a State, for the pur- 12 pose of performing one or more governmental or 13 proprietary functions.’’. 14 (d) UPDATE TO GUIDANCE.—The Secretary of the 15 Treasury shall update any guidance issued with respect 16 to the Coronavirus Relief Fund established under section 17 601 of the Social Security Act (42 U.S.C. 801) to reflect 18 the inclusion of special districts as eligible for payments 19 from amounts in excess of $150,000,000,000 appropriated 20 under such section. 21 SEC. 3. INCLUDING SPECIAL DISTRICTS IN THE MUNICIPAL 22 LIQUIDITY FACILITY. 23 The Board of Governors of the Federal Reserve Sys- 24 tem shall include special districts as eligible issuers in the 25 VerDate Sep 11 2014 07:33 Jun 23, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7073.IH H7073 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 7073 IH Municipal Liquidity Facility program authorized under 1 section 13(3) of the Federal Reserve Act. 2 Æ VerDate Sep 11 2014 07:33 Jun 23, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H7073.IH H7073 kjohnson on DSK79L0C42PROD with BILLS