[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8485 Introduced in House (IH)]

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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.
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