A bill to ensure that no cost reduction or cash refund is due under certain transportation cost-reimbursement contracts on the basis of the forgiveness of certain covered loans, and for other purposes.

Bill: 117-s-3711
Sponsor: full_name: Sen. Braun, Mike [R-IN]
Introduced: 2022-02-28
Policy area: Transportation and Public Works
Latest action: action_date: 2022-02-28
text: Read twice and referred to the Committee on Environment and Public Works.

Summaries:
action_date: 2022-02-28
action_desc: Introduced in Senate
text: <p>This bill exempts until June 30, 2025, certain contractors that receive federal highway or public transportation funding from having to adjust costs associated with their contracts to account for loan forgiveness through the Paycheck Protection Program (PPP). (The PPP provided small businesses with loans for payroll and other costs to respond to the COVID-19 emergency with loan forgiveness under certain conditions.)</p> <p>Under current law, a contractor with a cost-reimbursable contract must reduce costs or provide cash refunds to the Department of Transportation (or a state department of transportation) if the contractor receives or accrues any income, rebate, allowance, or other credit relating to an allowable contract cost, which includes PPP loan forgiveness.</p>

tv_txt: II 117th CONGRESS 2d Session S. 3711 IN THE SENATE OF THE UNITED STATES February 28, 2022 Mr. Braun (for himself and Ms. Duckworth ) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works A BILL To ensure that no cost reduction or cash refund is due under certain transportation cost-reimbursement contracts on the basis of the forgiveness of certain covered loans, and for other purposes.

1. Treatment of paycheck protection program loan forgiveness of payroll costs under highway and public transportation project cost-reimbursement contracts (a) In general Notwithstanding section 31.201–5 of title 48, Code of Federal Regulations (or successor regulations), for the purposes of any cost-reimbursement contract awarded in accordance with section 112 of title 23, United States Code, or section 5325 of title 49, United States Code, or any subcontract under such a contract, no cost reduction or cash refund (including through a reduced indirect cost rate) shall be due to the Department of Transportation or to a State transportation department, transit agency, or other recipient of assistance under chapter 1 of title 23, United States Code, or chapter 53 of title 49, United States Code, on the basis of forgiveness of the payroll costs of a covered loan (as those terms are defined in section 7A(a) of the Small Business Act ( 15 U.S.C. 636m(a) )) issued under the paycheck protection program under section 7(a)(36) of that Act ( 15 U.S.C. 636(a)(36) ). (b) Saving provision Nothing in this section amends or exempts the prohibitions and liabilities under section 3729 of title 31, United States Code. (c) Termination This section ceases to be effective on June 30, 2025.