Title: SMART Act
Policy area: Government Operations and Politics

Summary:
State Municipal Assistance for Response and Transition Act or the SMART Act
This bill provides $500 billion for a Coronavirus Local Community Stabilization Fund to address the economic effects of the COVID-19 (i.e., coronavirus disease 2019) pandemic on state, local, and tribal budgets. The bill also expands the uses of payments from the Coronavirus Relief Fund.
The bill allows a jurisdiction to use funding from the Coronavirus Local Community Stabilization Fund or Coronavirus Relief Fund for (1) necessary expenditures related to COVID-19 that were not accounted for in the jurisdiction's budget, including the nonfederal share contribution requirement for disaster or emergency assistance; or (2) expenditures the jurisdiction would otherwise be unable to make because of decreased or delayed revenues. Funding from the Coronavirus Local Community Stabilization Fund may be used for expenditures through 2022.
The bill (1) reserves specified funds for payments to tribal governments; (2) apportions funds to states based on population, infected population, and revenue lost; (3) provides for payments to counties and municipalities based on lost revenue.
The bill conditions funding on each state agreeing to fair and equitable budgeting based on need.
The Office of Inspector General of the Department of the Treasury may use amounts appropriated to carry out oversight and recoupment activities under this bill.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3752 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 3752

To amend title VI of the Social Security Act to establish a Coronavirus 
                  Local Community Stabilization Fund.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 18, 2020

 Mr. Menendez (for himself, Mr. Cassidy, Mrs. Hyde-Smith, Ms. Collins, 
 Mr. Manchin, and Mr. Booker) introduced the following bill; which was 
read twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
To amend title VI of the Social Security Act to establish a Coronavirus 
                  Local Community Stabilization Fund.

    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 ``State Municipal Assistance for 
Response and Transition Act'' or the ``SMART Act''.

SEC. 2. CORONAVIRUS LOCAL COMMUNITY STABILIZATION FUND.

    (a) In General.--Title VI of the Social Security Act, as added by 
section 5001(a) of the Coronavirus Aid, Relief, and Economic Security 
Act (Public Law 116-136), is amended by adding at the end the 
following:

``SEC. 602. CORONAVIRUS LOCAL COMMUNITY STABILIZATION FUND.

    ``(a) Appropriation.--
            ``(1) In general.--Out of any money in the Treasury of the 
        United States not otherwise appropriated, there are 
        appropriated for making payments to States under this section, 
        $500,000,000,000 for fiscal year 2020, to remain available 
        until expended.
            ``(2) Reservation of funds.--Of the amount appropriated 
        under paragraph (1), the Secretary shall reserve 
        $16,000,000,000 of such amount for making payments to Tribal 
        governments under subsection (c)(7).
    ``(b) Authority To Make Payments.--
            ``(1) In general.--The Secretary shall pay each State the 
        following amounts:
                    ``(A) Not later than 30 days after the date of 
                enactment of this section, the relative population 
                proportion amount determined for the State under 
                subsection (c)(1).
                    ``(B) Not later than 30 days after the date of 
                enactment of this section, the relative infected 
                population proportion amount determined for the State 
                under subsection (c)(2).
                    ``(C) As soon as practicable after December 31, 
                2020, the relative lost revenue proportion amount 
                determined for the State under subsection (c)(3).
            ``(2) Amounts reserved for payments to local governments.--
        A State shall reserve \1/3\ of each amount received by the 
        State under paragraph (1) to make direct payments to units of 
        local government in the State under subsection (c)(6).
    ``(c) Payment Amounts.--
            ``(1) Relative population proportion amount.--Subject to 
        paragraph (5), the relative population proportion amount for a 
        State is the product of--
                    ``(A) $161,333,333,333; and
                    ``(B) the amount equal to the quotient of--
                            ``(i) the population of the State; and
                            ``(ii) the total population of all States.
            ``(2) Relative infected population proportion amount.--
        Subject to subparagraph (5), the relative infected population 
        proportion amount determined under this paragraph for a State 
        is the product of--
                    ``(A) $161,333,333,333; and
                    ``(B) the quotient of--
                            ``(i) the cumulative population of the 
                        State that has been infected with Coronavirus 
                        Disease 2019 (COVID-19) as of June 1, 2020 
                        (including individuals who were infected and 
                        have recovered as of such date); and
                            ``(ii) the total cumulative population of 
                        all States that has been infected with 
                        Coronavirus Disease 2019 (COVID-19) as of such 
                        date (including individuals who were infected 
                        and have recovered as of such date).
            ``(3) Relative lost revenue proportion amount.--The 
        relative lost revenue proportion amount determined under this 
        paragraph for a State is the product of--
                    ``(A) $161,333,333,333; and
                    ``(B) the quotient of--
                            ``(i) the lost revenue amount determined 
                        for the State under paragraph (4); and
                            ``(ii) the sum of the lost revenue amounts 
                        determined for all States under paragraph (4).
            ``(4) Lost revenue amount.--
                    ``(A) In general.--For purposes of paragraph (3), 
                with respect to a State, the lost revenue amount is the 
                amount equal to the amount by which--
                            ``(i) the amount of revenue from taxes or 
                        other sources for the State for calendar year 
                        2019; exceeds
                            ``(ii) subject to subparagraph (B), the 
                        amount of revenue from taxes or other sources 
                        for the State for calendar year 2020 (as 
                        certified by the Governor of the State).
                    ``(B) Adjustments to lost revenue amount.--For 
                purposes of subparagraph (A)(ii), the amount of revenue 
                from taxes or other sources for a State and calendar 
                year 2020 shall be adjusted in the following manner:
                            ``(i) Such amount shall exclude any funds 
                        received by the State in calendar year 2020 
                        under this title.
                            ``(ii) Such amount shall be increased by 
                        the amount of any reduction to State revenue 
                        from taxes or other sources for calendar year 
                        2020 that results from the State--
                                    ``(I) enacting a tax cut, rebate, 
                                deduction, or credit; or
                                    ``(II) reducing, delaying, or 
                                eliminating any fee or other source of 
                                revenue.
                            ``(iii) Such amount shall be reduced by the 
                        amount of any expenditures made by the State 
                        during calendar year 2020 necessary to meet the 
                        non-Federal share contribution requirement of 
                        any public assistance that is provided under 
                        the Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act (42 U.S.C. 5121 et 
                        seq.) on the basis of a disaster or emergency 
                        declaration under such Act that--
                                    ``(I) is declared during the period 
                                beginning on January 1, 2020, and 
                                ending on the date of enactment of this 
                                section; and
                                    ``(II) is not related to the COVID-
                                19 pandemic.
            ``(5) Combined minimum payment amount for relative 
        population and relative infected population amounts.--
                    ``(A) In general.--The sum of the amounts 
                determined under paragraphs (1) and (2) for a State 
                described in subparagraph (C) shall not be less than 
                $2,000,000,000.
                    ``(B) Pro rata adjustments.--The Secretary shall 
                adjust on a pro rata basis the amounts determined under 
                paragraph (2) for each State described in subparagraph 
                (C) to the extent necessary to comply with the 
                requirement of subparagraph (A).
                    ``(C) States described.--The States described in 
                this subparagraph are each of the 50 States, the 
                District of Columbia, and Puerto Rico.
            ``(6) Direct payments to units of local government.--Not 
        later than 15 days after a State receives a payment under 
        paragraph (1) of subsection (b), the State shall make the 
        following payments from the amount reserved by the State under 
        paragraph (2) of that subsection with respect to such State 
        payment:
                    ``(A) Direct payments to counties and 
                municipalities based on population.--From each of the 
                amounts reserved by a State under paragraph (2) of 
                subsection (b) with respect to the payments received by 
                the State under subparagraphs (A) and (B) of paragraph 
                (1) of that subsection, the State shall pay to each 
                unit of local government in the State that is a county 
                or a municipality an amount equal to the product of--
                            ``(i) 50 percent of the amount so reserved; 
                        and
                            ``(ii) the quotient of--
                                    ``(I) the population of the county 
                                or municipality (as applicable); and
                                    ``(II) the total population of--
                                            ``(aa) in the case of a 
                                        county, all counties in the 
                                        State; or
                                            ``(bb) in the case of a 
                                        municipality, all 
                                        municipalities in the State.
                    ``(B) Direct payments to counties and 
                municipalities based on lost revenue.--From the amount 
                reserved by a State under paragraph (2) of subsection 
                (b) with respect to the payment received by the State 
                under subparagraph (C) of paragraph (1) of that 
                subsection, the State shall pay to each unit of local 
                government in the State that is a county or a 
                municipality an amount equal to the product of--
                            ``(i) 50 percent of the amount so reserved; 
                        and
                            ``(ii) the quotient of--
                                    ``(I) the lost revenue amount 
                                determined for the county or 
                                municipality (as applicable) under 
                                subparagraph (C); and
                                    ``(II) the total lost revenue 
                                amounts determined under subparagraph 
                                (C) for--
                                            ``(aa) in the case of a 
                                        county, all counties in the 
                                        State; or
                                            ``(bb) in the case of a 
                                        municipality, all 
                                        municipalities in the State.
                    ``(C) Lost revenue amount.--For purposes of 
                subparagraph (B), with respect to a county or 
                municipality, the lost revenue amount shall be 
                determined in the same manner as the lost revenue 
                amount for a State is determined under paragraph (4).
            ``(7) Payments to tribal governments.--The amounts paid 
        under this section to Tribal governments from the amount 
        reserved under subsection (a)(2) shall be paid not later than 
        30 days after the date of enactment of this section, and shall 
        be determined in the same manner as the amounts paid to Tribal 
        governments under section 601(c)(7) except that, for purposes 
        of this section--
                    ``(A) the term `Tribal government' means the 
                governing body of an Indian Tribe included on the most 
                recent list published by the Secretary pursuant to 
                section 104 of the Federally Recognized Indian Tribe 
                List Act of 1994 (25 U.S.C. 5131); and
                    ``(B) the term `Indian Tribe' has the meaning given 
                that term in section 102 of such Act (25 U.S.C. 5130), 
                except that such term shall not include an Alaska 
                Native regional or village corporation established 
                pursuant to the Alaska Native Claims Settlement Act (43 
                U.S.C. 1601 et seq.).
            ``(8) Data.--For purposes of this subsection--
                    ``(A) the population of States, units of local 
                governments, and Indian Tribes shall be determined 
                based on the most recent year for which data are 
                available from the Bureau of the Census;
                    ``(B) the determination of the populations of 
                States infected with COVID-19 shall be based on data 
                from the Centers for Disease Control and Prevention; 
                and
                    ``(C) where Indian Tribal population cannot be 
                readily determined by the most recent year for which 
                data are available from the Bureau of the Census, the 
                Department may consider tribal population data from the 
                Department of Interior or Department of Housing and 
                Urban Development.
    ``(d) Use of Funds.--
            ``(1) In general.--Amounts paid or distributed under this 
        subsection shall be used--
                    ``(A) to cover only those costs of the State, unit 
                of local government, or Tribal government that--
                            ``(i) are necessary expenditures incurred 
                        due to the public health emergency with respect 
                        to the Coronavirus Disease 2019 (COVID-19) 
                        (including expenditures necessary to meet the 
                        non-Federal share contribution requirement of 
                        any public assistance that is provided under 
                        the Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act (42 U.S.C. 5121 et 
                        seq.) on the basis of a disaster or emergency 
                        declaration under such Act that is declared in 
                        calendar year 2020;
                            ``(ii) were not accounted for in the budget 
                        most recently approved as of March 27, 2020, 
                        for the State or local government; and
                            ``(iii) were incurred during the period 
                        that begins on March 1, 2020, and ends on 
                        December 31, 2022; or
                    ``(B) for expenditures in calendar year 2020, 2021, 
                or 2022 that the State, Tribal government, or unit of 
                local government would otherwise be unable to make 
                because of decreased or delayed revenues.
            ``(2) Limitation.--No State may use funds made available 
        under this section for deposit into any State pension fund.
    ``(e) Fair and Equitable Budgeting Requirement.--As a condition for 
receiving amounts paid under this subsection, each State, to the extent 
allowable by State law, shall agree--
            ``(1) to base any cut to funding to units of local 
        government under the State budget on emergency need, and shall 
        ensure that such cuts are balanced to ensure all units of local 
        government are treated fairly;
            ``(2) to primarily use economic conditions, budgetary 
        shortfall, and revenue loss for each respective county and 
        municipality, as compared to 2019 levels, to determine whether 
        any such cut is balanced and appropriate; and
            ``(3) that the State legislative body shall have the 
        authority to disapprove such a cut if it violates a condition 
        of paragraph (1) or (2).
    ``(f) Application of Other Provisions.--
            ``(1) Definitions.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph and subsection (c)(7), the terms used in 
                this section have the meanings given those terms in 
                subsection (g) of section 601.
                    ``(B) County.--The term `county' means a county, 
                parish, or other equivalent county division (as defined 
                by the Bureau of the Census).
                    ``(C) Unit of local government.--In this section, 
                the term `unit of local government' means a county, 
                municipality, town, township, village, parish, borough, 
                or other unit of general government below the State 
                level.
            ``(2) Oversight.--The amounts paid under this section--
                    ``(A) shall be subject to the oversight 
                requirements of subsection (f) of section 601 in the 
                same manner as such requirements apply to the amounts 
                paid under that section, and the recoupment authority 
                under paragraph (2) of that subsection shall apply to 
                oversight of compliance with the use of funds 
                requirements of subsection (d) of this section and the 
                fair and equitable budgeting requirements of subsection 
                (e) of this section; and
                    ``(B) shall be distributed in accordance with all 
                applicable Federal laws.
            ``(3) IG funding authority.--Notwithstanding section 
        601(f)(3), the Inspector General of the Department of the 
        Treasury may use the amounts appropriated under that section to 
        carry out oversight and recoupment activities under this 
        section in addition to the oversight and recoupment activities 
        carried out under section 601(f).''.
    (b) Conforming Amendments.--Section 601(d) of title VI of the 
Social Security Act, as added by section 5001(a) of the Coronavirus 
Aid, Relief, and Economic Security Act (Public Law 116-136), is 
amended--
            (1) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C), respectively, and adjusting the 
        margins accordingly;
            (2) in subparagraph (A) (as so redesignated), by inserting 
        ``(including expenditures necessary to meet the non-Federal 
        share contribution requirement of any public assistance that is 
        provided under the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5121 et seq.) on the basis 
        of a disaster or emergency declaration under such Act that is 
        declared in calendar year 2020)'' before the semicolon;
            (3) in subparagraph (C) (as so redesignated), by striking 
        the period at the end and inserting ``; and'';
            (4) by striking ``under this section to cover only'' and 
        inserting ``under this section--
            ``(1) to cover only--''; and
            (5) by adding at the end the following new paragraph:
            ``(2) for expenditures in calendar year 2020, 2021, or 2022 
        that the State, Tribal government, or unit of local government 
        would otherwise be unable to make because of decreased or 
        delayed revenues.''.
                                 <all>