CARES Act

II 116TH CONGRESS 2D SESSION S. 3548 To provide emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic. IN THE SENATE OF THE UNITED STATES MARCH 19, 2020 Mr. MCCONNELL (for himself, Mr. ALEXANDER, Mr. CRAPO, Mr. GRASSLEY, Mr. RUBIO, Mr. SHELBY, and Mr. WICKER) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Coronavirus Aid, Re- 4 lief, and Economic Security Act’’ or the ‘‘CARES Act’’. 5 SEC. 2. TABLE OF CONTENTS. 6 The table of contents for this Act is as follows: 7 Sec. 1. Short title. Sec. 2. Table of contents. DIVISION A—SMALL BUSINESS INTERRUPTION LOANS VerDate Sep 11 2014 22:59 Mar 19, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\S3548.IS S3548 kjohnson on DSK79L0C42PROD with BILLS 2 •S 3548 IS Sec. 1101. Definitions. Sec. 1102. 7(a) loan program. Sec. 1103. Entrepreneurial development. Sec. 1104. Waiver of matching funds requirement under the women’s business center program. Sec. 1105. Loan forgiveness. Sec. 1106. Direct appropriations. Sec. 1107. Minority business development agency. Sec. 1108. Waiver of prepayment penalty. Sec. 1109. United States Treasury Program Management Authority. DIVISION B—RELIEF FOR INDIVIDUALS, FAMILIES, AND BUSINESSES TITLE I—REBATES AND OTHER INDIVIDUAL PROVISIONS Sec. 2101. 2020 recovery rebates for individuals. Sec. 2102. Delay of certain deadlines. Sec. 2103. Special rules for use of retirement funds. Sec. 2104. Allowance of partial above the line deduction for charitable contribu- tions. Sec. 2105. Modification of limitations on charitable contributions during 2020. TITLE II—BUSINESS PROVISIONS Sec. 2201. Delay of estimated tax payments for corporations. Sec. 2202. Delay of payment of employer payroll taxes. Sec. 2203. Modifications for net operating losses. Sec. 2204. Modification of limitation on losses for taxpayers other than cor- porations. Sec. 2205. Modification of credit for prior year minimum tax liability of cor- porations. Sec. 2206. Modification of limitation on business interest. Sec. 2207. Technical amendments regarding qualified improvement property. Sec. 2208. Installments not to prevent credit or refund of overpayments or in- crease estimated taxes. Sec. 2209. Restoration of limitation on downward attribution of stock owner- ship in applying constructive ownership rules. DIVISION C—ASSISTANCE TO SEVERELY DISTRESSED SECTORS OF THE UNITED STATES ECONOMY TITLE I—ECONOMIC STABILIZATION Sec. 3101. Short title. Sec. 3102. Emergency relief through loans and loan guarantees. Sec. 3103. Limitation on certain employee compensation. Sec. 3104. Continuation of certain air service. Sec. 3105. Reports. Sec. 3106. Coordination with Secretary of Transportation. Sec. 3107. Definitions. Sec. 3108. Rule of construction. TITLE II—AVIATION EXCISE TAXES Sec. 3201. Suspension of certain aviation excise taxes. VerDate Sep 11 2014 22:59 Mar 19, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 E:\BILLS\S3548.IS S3548 kjohnson on DSK79L0C42PROD with BILLS 3 •S 3548 IS DIVISION D—HEALTH CARE RESPONSE TITLE I—HEALTH PROVISIONS Subtitle A—Addressing Supply Shortages PART I—MOVING THE STRATEGIC NATIONAL STOCKPILE TO ASPR Sec. 4101. Moving the strategic national stockpile to ASPR. PART II—MEDICAL PRODUCT SUPPLIES Sec. 4111. National Academies report on America’s medical product supply chain security. Sec. 4112. Requiring the strategic national stockpile to include certain types of medical supplies. Sec. 4113. Treatment of respiratory protective devices as covered counter- measures. PART III—MITIGATING EMERGENCY DRUG SHORTAGES Sec. 4121. Prioritize reviews of drug applications; incentives. Sec. 4122. Additional manufacturer reporting requirements in response to drug shortages. Sec. 4123. GAO report on intra-agency coordination. Sec. 4124. Report. Sec. 4125. Safe harbor provision. PART IV—PREVENTING ESSENTIAL MEDICAL DEVICE SHORTAGES Sec. 4131. Discontinuance or interruption in the production of medical devices. Sec. 4132. GAO report on intra-agency coordination. PART V—EMERGENCY USE OF LABORATORY DEVELOPED TESTS Sec. 4141. Emergency use of laboratory developed tests. Subtitle B—Access to Health Care for COVID-19 Patients PART I—COVERAGE OF TESTING AND PREVENTIVE SERVICES Sec. 4201. Coverage of diagnostic testing for COVID-19. Sec. 4202. Pricing of diagnostic testing. Sec. 4203. Rapid coverage of preventive services and vaccines for coronavirus. PART II—SUPPORT FOR HEALTH CARE PROVIDERS Sec. 4211. Supplemental awards for health centers. Sec. 4212. Allowing permanent direct hire of NDMS health care professionals. Sec. 4213. Telehealth network and telehealth resource centers grant programs. Sec. 4214. Rural health care services outreach, rural health network develop- ment, and small health care provider quality improvement grant programs. Sec. 4215. United States Public Health Service Modernization. Sec. 4216. Limitation on liability for volunteer health care professionals during covid-19 emergency response. PART III—MISCELLANEOUS PROVISIONS VerDate Sep 11 2014 22:59 Mar 19, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6211 E:\BILLS\S3548.IS S3548 kjohnson on DSK79L0C42PROD with BILLS 4 •S 3548 IS Sec. 4221. Confidentiality and disclosure of records relating to substance use disorder. Sec. 4222. Nutrition services. Sec. 4223. Guidance on protected health information. Sec. 4224. Reauthorization of healthy start program. Subtitle C—Innovation Sec. 4301. Removing the cap on OTA. Sec. 4302. Extending the priority review program for agents that present na- tional security threats. Sec. 4303. Priority zoonotic animal drugs. Subtitle D—Finance Committee Sec. 4401. Exemption for telehealth services. Sec. 4402. Inclusion of certain over-the-counter medical products as qualified medical expenses. Sec. 4403. Treatment of direct primary care service arrangements. Sec. 4404. Increasing Medicare telehealth flexibilities during emergency period. Sec. 4405. Enhancing Medicare telehealth services for Federally qualified health centers and rural health clinics during emergency pe- riod. Sec. 4406. Temporary waiver of requirement for face-to-face visits between home dialysis patients and physicians. Sec. 4407. Improving care planning for Medicare home health services. Sec. 4408. Adjustment of sequestration. Sec. 4409. Medicare hospital inpatient prospective payment system add-on pay- ment for covid–19 patients during emergency period. Sec. 4410. Revising payment rates for durable medical equipment under the Medicare program through duration of emergency period. Sec. 4411. Providing home and community-based services in acute care hos- pitals. Sec. 4412. Treatment of technology-enabled collaborative learning and capacity building models as medical assistance. Sec. 4413. Encouraging the development and use of DISARM antimicrobial drugs. Sec. 4414. Novel medical products. TITLE II—EDUCATION PROVISIONS Sec. 4501. Short title. Sec. 4502. Definitions. Sec. 4503. Campus-based aid waivers. Sec. 4504. Use of supplemental educational opportunity grants for emergency aid. Sec. 4505. Federal work-study during a qualifying emergency. Sec. 4506. Adjustment of subsidized loan usage limits. Sec. 4507. Exclusion from Federal Pell Grant duration limit. Sec. 4508. Institutional refunds and Federal student loan flexibility. Sec. 4509. Satisfactory progress. Sec. 4510. Continuing education at affected foreign institutions. Sec. 4511. National emergency educational waivers. Sec. 4512. HBCU Capital financing. Sec. 4513. Temporary relief for federal student loan borrowers. VerDate Sep 11 2014 22:59 Mar 19, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6211 E:\BILLS\S3548.IS S3548 kjohnson on DSK79L0C42PROD with BILLS 5 •S 3548 IS Sec. 4514. Provisions related to the Corporation for National and Community Service. Sec. 4515. Workforce response activities. Sec. 4516. Technical amendments. TITLE III—LABOR PROVISIONS Sec. 4601. Limitation on paid leave. Sec. 4602. Emergency Paid Sick Leave Act Limitation. Sec. 4603. Regulatory Authorities under the Emergency Paid Sick Leave Act. Sec. 4604. Unemployment insurance. Sec. 4605. OMB Waiver of Paid Family and Paid Sick Leave. Sec. 4606. Paid leave for rehired employees. Sec. 4607. Advance refunding of credits. DIVISION E—TEMPORARY PERMIT USE TO GUARANTEE MONEY MARKET MUTUAL FUNDS Sec. 5001. Non-applicability of restrictions on ESF during national emergency. DIVISION F—BUDGETARY PROVISIONS Sec. 6001. Emergency designation. DIVISION A—SMALL BUSINESS 1 INTERRUPTION LOANS 2 SEC. 1101. DEFINITIONS. 3 In this division— 4 (1) the terms ‘‘Administration’’ and ‘‘Adminis- 5 trator’’ mean the Small Business Administration 6 and the Administrator thereof; and 7 (2) the term ‘‘small business concern’’ has the 8 meaning given the term in section 3 of the Small 9 Business Act (15 U.S.C. 632). 10 SEC. 1102. 7(a) LOAN PROGRAM. 11 (a) DEFINITION OF COVERED PERIOD.—In this sec- 12 tion, the term ‘‘covered period’’ means the period begin- 13 ning on March 1, 2020 and ending on December 31, 2020. 14 VerDate Sep 11 2014 22:59 Mar 19, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3548.IS S3548 kjohnson on DSK79L0C42PROD with BILLS 6 •S 3548 IS (b) INCREASED ELIGIBILITY FOR CERTAIN SMALL 1 BUSINESSES AND ORGANIZATIONS.— 2 (1) IN GENERAL.—During the covered period, 3 any business concern, private nonprofit organization, 4 or public nonprofit organization which employs not 5 more than 500 employees shall be eligible to receive 6 a loan made under section 7(a) of the Small Busi- 7 ness Act (15 U.S.C. 636(a)), in addition to small 8 business concerns. 9 (2) EXCLUSION OF NONPROFITS RECEIVING 10 MEDICAID EXPENDITURES.—Paragraph (1) shall not 11 apply to a nonprofit entity eligible for payment for 12 items or services furnished under a State plan under 13 title XIX of the Social Security Act (42 U.S.C. 1396 14 et seq.) or under a waiver of such plan. 15 (c) MAXIMUM LOAN AMOUNT.—During the covered 16 period, with respect to any loan guaranteed under section 17 7(a) of the Small Business Act (15 U.S.C. 636(a)) for 18 which an application is approved or pending approval on 19 or after the date of enactment of this Act, the maximum 20 loan amount shall be the lesser of— 21 (1) the product obtained by multiplying— 22 (A) the average total monthly payments by 23 the applicant for payroll, mortgage payments, 24 rent payments, and payments on any other debt 25 VerDate Sep 11 2014 22:59 Mar 19, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3548.IS S3548 kjohnson on DSK79L0C42PROD with BILLS 7 •S 3548 IS obligations incurred during the 1 year period 1 before the date on which the loan is made, ex- 2 cept that, in the case of an applicant that is 3 seasonal employer, as determined by the Ad- 4 ministrator, the average total monthly pay- 5 ments for payroll shall be for the period begin- 6 ning March 1, 2019 and ending June 30, 2019; 7 by 8 (B) 4; or 9 (2) $10,000,000. 10 (d) ALLOWABLE USES OF PROGRAM LOANS.— 11 (1) IN GENERAL.—During the covered period, a 12 recipient of a loan made under section 7(a) of the 13 Small Business Act (15 U.S.C. 636(a)) (including a 14 recipient of assistance under the Community Advan- 15 tage Pilot Program of the Administration) may, in 16 addition to the allowable uses of such a loan, use the 17 proceeds of the loan for— 18 (A) payroll support, including paid sick, 19 medical, or family leave, and costs related to 20 the continuation of group health care benefits 21 during those periods of leave; 22 (B) employee salaries; 23 (C) mortgage payments; 24 VerDate Sep 11 2014 22:59 Mar 19, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3548.IS S3548 kjohnson on DSK79L0C42PROD with BILLS 8 •S 3548 IS (D) rent (including rent under a lease 1 agreement); 2 (E) utilities; and 3 (F) any other debt obligations that were 4 incurred before the covered period. 5 (2) DELEGATED AUTHORITY.— 6 (A) IN GENERAL.—For purposes of mak- 7 ing loans for the purposes described in para- 8 graph (1), a lender under section 7(a) of the 9 Small Business Act (15 U.S.C. 636(a)) shall be 10 considered to have delegated authority to make 11 and approve loans under such section 7(a) 12 based on an evaluation of the eligibility of the 13 borrower. 14 (B) CONSIDERATIONS.—In evaluating the 15 eligibility of a borrower for a loan under section 16 7(a) of the Small Business Act (15 U.S.C. 17 636(a)) with the terms described in this sub- 18 section and subsection (c), a lender shall only 19 consider whether the borrower— 20 (i) was in operation on March 1, 21 2020; and 22 (ii) had employees for whom the bor- 23 rower paid salaries and payroll taxes. 24 VerDate Sep 11 2014 22:59 Mar 19, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S3548.IS S3548 kjohnson on DSK79L0C42PROD with BILLS 9 •S 3548 IS (3) LIMITATION.—A borrower that receives as- 1 sistance under section 7(b)(2) of the Small Business 2 Act (15 U.S.C. 636(b)(2)) related to COVID–19 for 3 purposes of paying payroll and providing payroll 4 support shall not be eligible for a loan described in 5 paragraph (1) for the same purpose. 6 (e) FEE WAIVER FOR 7(A) LOANS.—During the cov- 7 ered period, with respect to each loan guaranteed under 8 section 7(a) of the Small Business Act (15 U.S.C. 9 636(a))— 10 (1) in lieu of the fee otherwise applicable under 11 section 7(a)(23)(A) of the Small Business Act (15 12 U.S.C. 636(a)(23)(A)), the Administrator shall col- 13 lect no fee or reduce fees to the maximum extent 14 possible; and 15 (2) for which the application is approved on or 16 after the date of enactment of this Act, the Adminis- 17 trator shall, in lieu of the fee otherwise applicable 18 under section 7(a)(18)(A) of the Small Business Act 19 (15 U.S.C. 636(a)(18)(A)), collect no fee or reduce 20 fees to the maximum extent possible. 21 (f) GUARANTEE AMOUNT FOR 7(A) LOANS.— 22 (1) IN GENERAL.—Section 7(a)(2)(A) of the 23 Small Business Act (15 U.S.C. 636(a)(2)(A)) is 24 amended by striking ‘‘equal to—’’ and all that fol- 25 VerDate Sep 11 2014 22:59 Mar 19, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3548.IS S3548 kjohnson on DSK79L0C42PROD with BILLS 10 •S 3548 IS lows through the end of the subparagraph and in- 1 serting ‘‘equal to 100 percent of the balance of the [Text truncated for display. 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