Protecting Nonprofits from Catastrophic Cash Flow Strain Act of 2020

Bill: 116-s-4001
Sponsor: full_name: Sen. Scott, Tim [R-SC]
Introduced: 2020-06-18
Policy area: Labor and Employment
Subjects: Government trust funds

Social work, volunteer service, charitable organizations

State and local finance

Unemployment
Latest action: action_date: 2020-06-18
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2020-06-18
action_desc: Introduced in Senate
text: <p><b>Protecting Nonprofits from Catastrophic Cash Flow Strain Act of 2020</b></p> <p>This bill permits certain governmental entities, federally recognized tribes, and nonprofit organizations to make up front payments of 50% of unemployment benefits into the state Unemployment Trust Fund (in lieu of contributions) to be used exclusively to reduce such payments resulting from the COVID-19 (i.e., coronavirus disease 2019) pandemic.</p> <p>Currently, the Department of Labor issued guidance on April 27, 2020 (UIPL 18-20), requiring states to collect 100% of such payments up front and then reimburse them by 50% later.</p> <p>In addition, the bill allows states to opt to issue such reimbursements or to reduce the amounts required to be paid for weeks of employment on or after March 13, 2020, and before enactment of this bill.</p>

tv_txt: II 116th CONGRESS 2d Session S. 4001 IN THE SENATE OF THE UNITED STATES June 18, 2020 Mr. Scott of South Carolina (for himself, Mr. Brown , Mr. Grassley , Mr. Wyden , Mr. Cornyn , Mr. Carper , Mr. Lankford , Mr. Casey , Mr. Perdue , and Ms. Hassan ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend title IX of the Social Security Act to improve emergency unemployment relief for governmental entities and nonprofit organizations.

1. Short title This Act may be cited as the Protecting Nonprofits from Catastrophic Cash Flow Strain Act of 2020 . 2. Improving emergency unemployment relief for governmental entities and nonprofit organizations (a) In general Section 903(i)(1) of the Social Security Act ( 42 U.S.C. 1103(i)(1) ) is amended— (1) in subparagraph (A), by striking during and inserting with respect to ; (2) in subparagraph (B), by striking 3309(a)(1) and inserting 3309(a) ; and (3) by striking subparagraph (C) and inserting the following new subparagraph: (C) Notwithstanding any other provision of law, funds transferred to the account of a State under subparagraph (A) shall be used exclusively to reduce the amounts required to be paid in lieu of contributions into the State unemployment fund pursuant to such section by governmental entities and other organizations described in section 3309(a) of such Code. . (b) Effective date (1) In general Subject to paragraph (2), the amendments made by subsection (a) shall take effect as if included in the enactment of section 2103 of the Relief for Workers Affected by Coronavirus Act (contained in subtitle A of title II of division A of the CARES Act ( Public Law 116–136 )). (2) Application to weeks prior to enactment For weeks of unemployment that occurred on or after March 13, 2020, and prior to the date of enactment of this section, States may— (A) issue reimbursements in accordance with section 903(i)(1)(C) of the Social Security Act, as in effect prior to the date of enactment of this section; or (B) reduce the amounts required to be paid in accordance with such section 903(i)(1)(C), as amended by subsection (a).