Title: Special Districts Provide Essential Services Act
Policy area: Government Operations and Politics

Summary:
Special Districts Provide Essential Services Act
This bill makes special districts eligible for payments from the Coronavirus Relief Fund if more than $150 billion is appropriated to the fund. The bill also directs the Board of Governors of the Federal Reserve System to include special districts as eligible issuers in the Municipal Liquidity Facility program.
A special district is a political subdivision, formed pursuant to general law or special act of a state, for the purpose of performing one or more governmental or proprietary functions. Services that such districts provide include first responders, firefighting, public health, or transit.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7073 Introduced in House (IH)]

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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 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 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Special Districts Provide Essential 
Services Act''.

SEC. 2. INCLUSION OF SPECIAL DISTRICTS IN THE CORONAVIRUS RELIEF FUND.

    (a) In General.--Section 601(a) of the Social Security Act (42 
U.S.C. 801(a)) is amended by adding at the end the following new 
paragraph:
            ``(3) Funds for special districts.--If an amount in excess 
        of $150,000,000,000 is appropriated for payments made under 
        this section, special districts shall be eligible for payments 
        out of such excess amount in accordance with subsection 
        (c)(6).''.
    (b) Amount for Special Districts.--Section 601(c) of the Social 
Security Act (42 U.S.C. 801(c)) is amended--
            (1) by redesignating paragraphs (6) through (8) as 
        paragraphs (7) through (9), respectively; and
            (2) by inserting after paragraph (5) the following new 
        paragraph:
            ``(6) Special districts.--If a portion of any excess amount 
        described in subsection (a)(3) is allocated to a State, such 
        State shall allocate at least 5 percent of that amount for 
        special districts in that State for distribution at such 
        State's discretion, not later than 60 days after such State has 
        received such funds.''.
    (c) Definition of Special District.--Section 601(g) of the Social 
Security Act (42 U.S.C. 801(g)) is amended--
            (1) by redesignating paragraphs (4) through (5) as 
        paragraphs (5) through (6), respectively; and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Special district.--The term `special district' means 
        a political subdivision, formed pursuant to general law or 
        special act of a State, for the purpose of performing one or 
        more governmental or proprietary functions.''.
    (d) Update to Guidance.--The Secretary of the Treasury shall update 
any guidance issued with respect to the Coronavirus Relief Fund 
established under section 601 of the Social Security Act (42 U.S.C. 
801) to reflect the inclusion of special districts as eligible for 
payments from amounts in excess of $150,000,000,000 appropriated under 
such section.

SEC. 3. INCLUDING SPECIAL DISTRICTS IN THE MUNICIPAL LIQUIDITY 
              FACILITY.

    The Board of Governors of the Federal Reserve System shall include 
special districts as eligible issuers in the Municipal Liquidity 
Facility program authorized under section 13(3) of the Federal Reserve 
Act.
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