I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Health and Fitness 

5 Recovery Act of 2020’’. 


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1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) AFFILIATED BUSINESS.—The term ‘‘affili4 ated business’’ means a business in which an eligible 

5 entity has an equity or right to profit distributions 

6 of not less than 50 percent, or in which an eligible 

7 entity has the contractual authority to control the 

8 direction of the business, provided that such affili9 ation shall be determined as of any arrangements or 

10 agreements in existence as of March 13, 2020. 

11 (2) COVERED PERIOD.—The term ‘‘covered pe12 riod’’ means the period beginning on February 15, 

13 2020, and ending on December 31, 2020. 

14 (3) ELIGIBLE ENTITY.—The term ‘‘eligible enti15 ty’’— 

16 (A) subject to subparagraph (B), means a 

17 health club, health or fitness studio, fitness cen18 ter, gym, or fitness or health spa; and 

19 (B) does not include an entity that is, or 

20 is part of, a governmental facility. 

21 (4) FUND.—The term ‘‘Fund’’ means the 

22 Health Club Recovery Fund established under sec23 tion 3. 

24 (5) PAYROLL COSTS.—The term ‘‘payroll costs’’ 

25 has the meaning given the term in section 


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1 7(a)(36)(A) of the Small Business Act (15 U.S.C. 

2 636(a)(36)(A)). 

3 (6) SECRETARY.—The term ‘‘Secretary’’ means 

4 the Secretary of the Treasury. 

5 SEC. 3. HEALTH CLUB RECOVERY FUND. 

6 (a) IN GENERAL.—There is established in the Treas7 ury of the United States a fund to be known as the Health 

8 Club Recovery Fund. 

9 (b) APPROPRIATIONS.— 

10 (1) IN GENERAL.—There is appropriated to the 

11 Fund, out of amounts in the Treasury not otherwise 

12 appropriated, $30,000,000,000, to remain available 

13 until December 31, 2020. 

14 (2) REMAINDER TO TREASURY.—Any amounts 

15 remaining in the Fund after December 31, 2020, 

16 shall be deposited in the general fund of the Treas17 ury. 

18 (c) USE OF FUNDS.—The Secretary shall use 

19 amounts in the Fund to make grants described in section 

20 4. 

21 SEC. 4. HEALTH CLUB RECOVERY GRANTS. 

22 (a) IN GENERAL.—The Secretary shall award grants 

23 to eligible entities to provide relief to such entities during 

24 the COVID–19 pandemic. 

25 (b) APPLICATION.— 


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1 (1) IN GENERAL.—An eligible entity desiring a 

2 grant under this section shall submit to the Sec3 retary an application at such time, in such manner, 

4 and containing such information as the Secretary 

5 may require. 

6 (2) CERTIFICATION.—An eligible entity apply7 ing for a grant under this section shall make a good 

8 faith certification— 

9 (A) that the uncertainty of current eco10 nomic conditions makes necessary the grant re11 quest to support the ongoing operations of the 

12 eligible entity; 

13 (B) acknowledging that funds will be used 

14 to retain workers and maintain payroll or for 

15 other allowable expenses described in subsection 

16 (e); 

17 (C) that the eligible entity does not have 

18 an application pending for a grant under sub19 section (a)(36) or (b)(2) of section 7 of the 

20 Small Business Act (15 U.S.C. 636) for the 

21 same purpose and duplicative of amounts ap22 plied for or received under this section; and 

23 (D) that, during the covered period, the el24 igible entity has not received amounts under 

25 subsection (a)(36) or (b)(2) of section 7 of the 


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1 Small Business Act (15 U.S.C. 636) for the 

2 same purpose and duplicative of amounts ap3 plied for or received under this section. 

4 (3) HOLD HARMLESS.—The Secretary shall not 

5 reduce the amount of a grant to an eligible entity 

6 under this section, or otherwise penalize such eligible 

7 entity, on the basis of the eligible entity having 

8 failed to hire or rehire employees contrary to assur9 ances made by the eligible entity in its grant appli10 cation, so long as the eligible entity is able to docu11 ment— 

12 (A) an inability to rehire individuals who 

13 were employees of the eligible entity on Feb14 ruary 15, 2020; and 

15 (B) an inability to hire similarly qualified 

16 employees for unfilled positions on or before 

17 December 31, 2020. 

18 (c) PRIORITY IN AWARDING GRANTS.— 

19 (1) IN GENERAL.—Subject to paragraph (2), 

20 the Secretary shall award grants to eligible entities 

21 under subsection (a) in the order in which completed 

22 applications are received by the Secretary in accord23 ance with this section. 


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1 (2) PRIORITY.—During the initial 14-day pe2 riod in which the Secretary awards grants under this 

3 section, the Secretary shall— 

4 (A) prioritize awarding grants to eligible 

5 entities serving marginalized and underrep6 resented communities, with a focus on women7 , veteran-, and minority-owned and operated eli8 gible entities serving such communities; and 

9 (B) only award grants to eligible entities 

10 with annual revenues of less than $1,500,000. 

11 (d) GRANT AMOUNT.— 

12 (1) AGGREGATE MAXIMUM AMOUNT.—The ag13 gregate amount of grants made to an eligible entity 

14 and any affiliate businesses of the eligible entity 

15 under this section shall not exceed the lesser of— 

16 (A) $10,000,000; or 

17 (B) 10 percent of the sum of the annual 

18 revenues of the eligible entity and all affiliate 

19 businesses of the eligible entity for the calendar 

20 year preceding the award of the grant. 

21 (2) DETERMINATION OF GRANT AMOUNT.— 

22 (A) IN GENERAL.—The amount of a grant 

23 made to an eligible entity under this section 

24 shall be based on the difference in revenues or 

25 estimated revenues of the eligible entity during 


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1 a calendar quarter in 2020 selected by the eligi2 ble entity as compared to 95 percent of the rev3 enues of the eligible entity in the same calendar 

4 quarter in 2019. 

5 (B) VERIFICATION.—An eligible entity 

6 shall submit to the Secretary such revenue 

7 verification documentation as the Secretary 

8 may require to determine the amount of a grant 

9 under subparagraph (A). 

10 (C) REPAYMENT.—Any amount of a grant 

11 made under this section to an eligible entity 

12 based on estimated revenues in a calendar quar13 ter in 2020 that is above the actual revenues of 

14 the eligible entity during that calendar quarter 

15 shall be converted to a loan that has— 

16 (i) an interest rate of 1 percent; and 

17 (ii) a maturity date of 10 years begin18 ning on January 1, 2021. 

19 (3) NO DUPLICATION OF BENEFITS.—An eligi20 ble entity that received a loan under section 7(a)(36) 

21 of the Small Business Act (15 U.S.C. 636(a)(36)) 

22 may not apply for or use grant amounts under this 

23 section for the same expenses for which the eligible 

24 entity received the loan. 


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1 (4) LIMITATION.—An eligible entity may not re2 ceive more than 1 grant under this section. 

3 (e) USE OF FUNDS.— 

4 (1) ALLOWABLE USES.—During the covered pe5 riod, an eligible entity that receives a grant under 

6 this section may use the grant funds for— 

7 (A) payroll costs; 

8 (B) payments of principal or interest on 

9 any mortgage obligation; 

10 (C) rent payments, including rent under a 

11 lease agreement; 

12 (D) utilities; 

13 (E) maintenance expenses, including con14 struction or reconfiguration to accommodate so15 cial distancing requirements; 

16 (F) supplies, including protective equip17 ment and cleaning materials; 

18 (G) debt obligations to suppliers that were 

19 incurred before the covered period; and 

20 (H) any other expenses that the Secretary 

21 determines to be essential to maintaining the el22 igible entity. 

23 (2) RETURNING FUNDS.—If an eligible entity 

24 that receives a grant under this section permanently 

25 ceases operations on or before December 31, 2020, 


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1 the eligible entity shall return to the Treasury any 

2 funds that the eligible entity received through the 

3 grant and did not use for the allowable expenses 

4 under paragraph (1). 

5 (3) CONVERSION TO LOAN.—Any grant 

6 amounts received by an eligible entity under this sec7 tion that are unused after December 31, 2020, shall 

8 be immediately converted to a loan with— 

9 (A) an interest rate of 1 percent; and 

10 (B) a maturity date of 10 years. 

11 (f) TAXABILITY.—For purposes of the Internal Rev12 enue Code of 1986— 

13 (1) the amount of a grant awarded to an eligi14 ble entity under this section shall be excluded from 

15 the gross income of the eligible entity; 

16 (2) no deduction shall be denied or reduced, no 

17 tax attribute shall be reduced, and no basis increase 

18 shall be denied, by reason of the exclusion from 

19 gross income provided by paragraph (1); and 

20 (3) an eligible entity that receives a grant under 

21 this section shall not be eligible for the credit de22 scribed in section 2301 of the CARES Act (Public 

23 Law 116–136). 

24 (g) REGULATIONS.—Not later than 15 days after the 

25 date of enactment of this Act, the Secretary shall issue 


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1 regulations to carry out this section without regard to the 

2 notice and comment requirements under section 553 of 

3 title 5, United States Code. 

4 (h) APPROPRIATIONS FOR STAFFING AND ADMINIS5 TRATIVE EXPENSES.— 

6 (1) IN GENERAL.—There is appropriated to the 

7 Secretary, out of amounts in the Treasury not other8 wise appropriated, $200,000,000, to remain avail9 able until December 31, 2020, for staffing and ad10 ministrative expenses related to administering grants 

11 awarded under this section. 

12 (2) SET ASIDE.—Of amounts appropriated 

13 under paragraph (1), $60,000,000 shall be allocated 

14 for outreach to traditionally marginalized and under15 represented communities, with a focus on women-, 

16 veteran-, and minority-owned and operated eligible 

17 entities, including the creation of a resource center 

18 targeted toward these communities. 

19 SEC. 5. EMERGENCY DESIGNATION. 

20 (a) IN GENERAL.—The amounts provided by this Act 

21 are designated as an emergency requirement pursuant to 

22 section 4(g) of the Statutory Pay-As-You-Go Act of 2010 

23 (2 U.S.C. 933(g)). 

24 (b) DESIGNATION IN SENATE.—In the Senate, this 

25 Act is designated as an emergency requirement pursuant 


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1 to section 4112(a) of H. Con. Res. 71 (115th Congress), 

2 the concurrent resolution on the budget for fiscal year 

3 2018. 

Æ 


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