[Congressional Record Volume 167, Number 139 (Wednesday, August 4, 2021)]
[Senate]
[Pages S5871-S5873]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2547. Mr. BLUMENTHAL (for himself, Mr. Warner, Mr. Kaine, and Mrs. 
Blackburn) submitted an amendment intended to be proposed to amendment 
SA 2137 proposed by Mr. Schumer (for Ms. Sinema (for herself, Mr. 
Portman, Mr. Manchin, Mr. Cassidy, Mrs. Shaheen, Ms. Collins, Mr. 
Tester, Ms. Murkowski, Mr. Warner, and Mr. Romney)) to the bill H.R. 
3684, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

        At the appropriate place in division I, insert the 
     following:

     SEC. 90___. GRANTS FOR CERTAIN MINOR LEAGUE BASEBALL CLUBS.

       (a) In General.--The Administrator shall, subject to the 
     availability of appropriations, make covered grants to 
     eligible entities in accordance with this section.
       (b) Authority.--The Associate Administrator for the Office 
     of Disaster Assistance of the Small Business Administration 
     shall coordinate and formulate policies relating to the 
     administration of covered grants.
       (c) Certification of Need.--An eligible entity applying for 
     a covered grant shall submit a good faith certification that 
     the uncertainty of current economic conditions makes 
     necessary the grant to support the ongoing operations of the 
     eligible entity.
       (d) Multiple Business Entities.--The Administrator shall 
     treat each eligible entity as an independent, non-affiliated 
     entity for the purposes of this section.
       (e) Grant Terms.--
       (1) Number of grants.--
       (A) In general.--Except as provided in subparagraph (B), an 
     eligible entity may receive only 1 covered grant.
       (B) Supplemental grant.--The Administrator may make a 
     second covered grant to an eligible entity if, as of June 30, 
     2021, the gross revenues of such eligible entity for calendar 
     year 2021 as of such date are not more than 30 percent of the 
     gross revenues of such eligible entity for the corresponding 
     period of 2019, or, if the gross revenues of the eligible 
     entity were negatively impacted by a natural disaster or 
     weather disruption in 2019, not more than 30 percent of the 
     average gross revenues of the eligible entity during the 
     first 6 months of 2016, 2017, and 2018, due to the COVID-19 
     pandemic.
       (2) Amount.--
       (A) In general.--Except as provided in subparagraph (B), a 
     covered grant shall be in an amount equal to the lesser of--
       (i) the amount equal to 45 percent of the gross revenues of 
     the eligible entity for 2019, or, if the gross revenues of 
     the eligible entity were negatively impacted by a natural 
     disaster or weather disruption in 2019, equal to 45 percent 
     of the average annual gross revenues of the eligible entity 
     over the 3-year period from 2016 through 2018, which shall 
     include the gross revenues of all subsidiaries and other 
     related entities that are consolidated with the gross 
     revenues of the eligible entity in a financial statement 
     prepared in accordance with generally accepted accounting 
     principles for such eligible entity for such year; or
       (ii) $10,000,000.
       (B) Supplement grant amount.--A covered grant made pursuant 
     to paragraph (1)(B) shall be in an amount equal to 50 percent 
     of the first covered grant received by the eligible entity.
       (3) Grant aggregate maximum.--The total amount of covered 
     grants received by an eligible entity may not exceed 
     $10,000,000.
       (4) Use of funds.--
       (A) Timing.--
       (i) Expenses incurred.--

       (I) In general.--Except as provided in subclause (II), 
     amounts received under a covered grant may only be used for 
     expenses incurred during the period beginning on March 1, 
     2020 and ending on December 31, 2021.
       (II) Extension for supplemental grants.--If an eligible 
     entity receives a grant under paragraph (1)(B), amounts 
     received under a covered grant may be used for costs incurred 
     during the period beginning on March 1, 2020 and ending 
     September 30, 2022.

       (ii) Expenditure.--

       (I) In general.--Except as provided in subclause (II), an 
     eligible entity shall return to the Administrator any amounts 
     received under a covered grant that are not expended on or 
     before the date that is 1 year after the date of disbursement 
     of the covered grant.
       (II) Extension for supplemental grants.--If an eligible 
     entity receives a grant under paragraph (1)(B), the eligible 
     entity shall return to the Administrator any amounts received 
     under any covered grant that are not expended on or before 
     the date that is 18 months after the date of disbursement of 
     the first covered grant received by the eligible entity.

       (B) Allowable expenses.--An eligible entity may use amounts 
     received under a covered grant for--
       (i) payroll costs;
       (ii) payments on any covered rent obligation or other 
     obligation to a public entity from whom the primary venue of 
     the eligible entity is leased or licensed;

[[Page S5872]]

       (iii) any covered utility payment;
       (iv) payments of interest or principal due on any covered 
     mortgage obligation;
       (v) payments of interest or principal due on any 
     indebtedness or debt instrument incurred in the ordinary 
     course of business that is a liability of the eligible entity 
     and was in place or incurred prior to February 15, 2020;
       (vi) covered worker protection expenditures;
       (vii) payments made to independent contractors, as reported 
     on Form-1099 MISC, not to exceed a total of $100,000 in 
     annual compensation for any individual employee of an 
     independent contractor; and
       (viii) other ordinary and necessary business expenses, 
     including--

       (I) maintenance expenses;
       (II) administrative costs, including fees and licensing 
     costs;
       (III) State and local taxes and fees;
       (IV) operating leases in effect as of February 15, 2020;
       (V) payments required for insurance on any insurance 
     policy;
       (VI) settling existing debts with vendors; and
       (VII) advertising, production, transportation, and capital 
     expenditures relating to the primary venue of the eligible 
     entity or events held at such venue, except that a grant 
     under this section may not be used primarily for such 
     expenditures.

       (C) Prohibited expenses.--An eligible entity may not use 
     amounts received under a grant under this section--
       (i) to purchase real estate;
       (ii) for payments of interest or principal for loans 
     originated after February 15, 2020;
       (iii) to invest or re-lend funds;
       (iv) for contributions or expenditures to, or on behalf of, 
     any political party, party committee or candidate for 
     elective office; or
       (v) for any other use as may be reasonably prohibited by 
     the Administrator.
       (f) Increased Oversight.--The Administrator shall increase 
     oversight of eligible entities receiving covered grants, 
     which may include the following:
       (1) Documentation.--Additional documentation requirements 
     that are consistent with the eligibility and other 
     requirements under this section, including requiring an 
     eligible entity that receives a grant under this section to 
     retain records that document compliance with the requirements 
     for grants under this section--
       (A) with respect to employment records, for the 4-year 
     period following receipt of the grant; and
       (B) with respect to other records, for the 3-year period 
     following receipt of the grant.
       (2) Reviews of use.--Reviews of the use of the grant 
     proceeds by an eligible entity to ensure the compliance with 
     requirements established under this section and by the 
     Administrator, including that the Administrator may--
       (A) review and audit grants under this section; and
       (B) in the case of fraud of other material noncompliance 
     with respect to a grant under this section--
       (i) require repayment of misspent funds; or
       (ii) pursue legal action to collect funds.
       (g) Oversight and Audit Plan.--
       (1) In general.--Not later than 45 days after the date of 
     enactment of this Act, the Administrator shall submit to the 
     Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives an audit plan that details--
       (A) the policies and procedures of the Administrator for 
     conducting oversight and audits of covered grants; and
       (B) the metrics that the Administrator shall use to 
     determine which covered grants will be audited pursuant to 
     subsection (f).
       (2) Report.--Not later than 60 days after the date of 
     enactment of this Act, and each month thereafter until the 
     date that is 1 year after the date on which all amounts 
     appropriated to make covered grants have been expended, the 
     Administrator shall submit to the Committee on Small Business 
     and Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report on the 
     oversight and audit activities of the Administrator under 
     this subsection, which shall include--
       (A) the total number of covered grants approved and 
     disbursed;
       (B) the total amount of covered grants received by each 
     eligible entity;
       (C) the number of active investigations and audits of 
     covered grants;
       (D) the number of completed reviews and audits of covered 
     grants, including a description of any findings of fraud or 
     other material non-compliance; and
       (E) any substantial changes made to the oversight and audit 
     plan submitted under paragraph (1).
       (h) Tax Treatment of Covered Loans.--
       (1) In general.--For the purposes of the Internal Revenue 
     Code of 1986--
       (A) no covered grant shall be included in the gross income 
     of the eligible entity that receives such covered grant;
       (B) no deduction shall be denied, no tax attribute shall be 
     reduced, and no basis increase shall be denied, by reason of 
     the exclusion from gross income provided by subparagraph (A); 
     and
       (C) in the case of a partnership or S corporation that 
     receives such a covered grant--
       (i) any amount excluded from income by reason of 
     subparagraph (A) shall be treated as tax exempt income for 
     purposes of sections 705 and 1366 of the Internal Revenue 
     Code of 1986; and
       (ii) the Secretary of the Treasury (or the Secretary's 
     delegate) shall prescribe rules for determining a partner's 
     distributive share of any amount described in clause (i) for 
     purposes of section 705 of the Internal Revenue Code of 1986.
       (2) Applicability.--Paragraph (1) shall apply to taxable 
     years ending after the date of enactment of this Act.
       (i) Funding.--Notwithstanding any provision of covered law, 
     from any funds appropriated under such a law that have not 
     been obligated as of the date of enactment of this Act and 
     are no longer being used to carry out the activities under 
     such a law, the remaining funds or $550,000,000, whichever is 
     greater, but in any case not more than $550,000,000, shall be 
     allocated to the Administrator to carry out this section, of 
     which not more than $50,000,000 shall be allocated to 
     Independent Professional Baseball Clubs.
       (j) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Small Business Administration.
       (2) Covered grants.--The term ``covered grant'' means a 
     grant made under this section to an eligible entity.
       (3) Covered law.--The term ``covered law'' means--
       (A) the Coronavirus Preparedness and Response Supplemental 
     Appropriations Act, 2020 (Public Law 116-123);
       (B) the Families First Coronavirus Response Act (Public Law 
     116-127);
       (C) the CARES Act (Public Law 116-136);
       (D) the Paycheck Protection Program and Health Care 
     Enhancement Act (Public Law 116-139; 134 Stat. 620);
       (E) division M or N of the Consolidated Appropriations Act, 
     2021 (Public Law 116-260); or
       (F) the American Rescue Plan Act of 2021 (Public Law 117-
     2).
       (4) Covered mortgage obligation; covered rent obligation; 
     covered utility payment; covered worker protection 
     expenditure.--The terms ``covered mortgage obligation'', 
     ``covered rent obligation'', ``covered utility payment'', and 
     ``covered worker protection expenditure'' have the meanings 
     given those terms in section 7A(a) of the Small Business Act 
     (15 U.S.C. 636m(a)).
       (5) Eligible entity.--The term ``eligible entity'' means 
     any Minor League Baseball Club or Independent Professional 
     Baseball Club that meets the following requirements:
       (A) The Minor League Baseball Club or Independent 
     Professional Baseball Club was operating in the ordinary 
     course of business on February 29, 2020.
       (B) The gross revenues of the Minor League Baseball Club or 
     Independent Professional Baseball Club in calendar year 2020 
     were not more than 25 percent of the gross revenues of the 
     Minor League Baseball Club or Independent Professional 
     Baseball Club in calendar year 2019, or, if the gross 
     revenues of the Minor League Baseball Club or Independent 
     Professional Baseball Club were negatively impacted by a 
     natural disaster or weather disruption in 2019, not more than 
     25 percent of the average annual gross revenues of the Minor 
     League Baseball Club or Independent Professional Baseball 
     Club over the 3-year period from 2016 through 2018, as 
     determined by the Administrator using the accrual method of 
     accounting and excluding any amounts received any amounts 
     received under the CARES Act (15 U.S.C. 9001 et seq.), an 
     amendment to such Act, the Consolidated Appropriations Act, 
     2021 (Public Law 116-260), or any subsequent COVID Relief 
     package.
       (C) At the time the Minor League Baseball Club or 
     Independent Professional Baseball Club submits the 
     certification required under subsection (c), the Minor League 
     Baseball Club or Independent Professional Baseball Club is 
     open, or intends to reopen, for the primary purpose of 
     conducting baseball games.
       (D) The Minor League Baseball Club or Independent 
     Professional Baseball Club is not majority owned, directly or 
     indirectly, by Major League Baseball, a Major League Baseball 
     Club, or one or more persons who have a greater than 10 
     percent ownership interest in a Major League Baseball Club.
       (6) Independent professional baseball club.--The term 
     ``Independent Professional Baseball Club'' means a 
     professional baseball team, including a professional baseball 
     team that is a corporation, limited liability company, or a 
     partnership or operated as a sole proprietorship, that--
       (A) operates for profit or as a nonprofit organization;
       (B) is located in the United States; and
       (C) as of February 29, 2020, was a member of--
       (i) the American Association of Professional Baseball;
       (ii) the Atlantic League of Professional Baseball;
       (iii) the Canadian American Association of Professional 
     Baseball;
       (iv) the Empire Professional Baseball League;
       (v) the Frontier League;
       (vi) the Pacific Association of Professional Baseball 
     Clubs;
       (vii) the Pecos League of Professional Baseball Clubs;
       (viii) the United Shore Professional Baseball League; or
       (ix) the Western League.
       (7) Minor league baseball club.--The term ``Minor League 
     Baseball Club'' means a

[[Page S5873]]

     professional baseball team, including a professional baseball 
     team that is a corporation, limited liability company, or a 
     partnership or operated as a sole proprietorship, that--
       (A) operates for profit or as a nonprofit organization;
       (B) is located in the United States; and
       (C)(i) as of February 29, 2020, was a member of a league 
     that was a member of the National Association of Professional 
     Baseball Leagues, Inc.; or
       (ii) has been offered and is operating or has agreed to 
     operate under--
       (I) a Player Development License granted by MLB 
     Professional Development Leagues, LLC; or
       (II) a license granted by Appalachian League, Inc.
       (8) 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)).
                                 ______