,,ii #aaeth ,,congress #b;d ,session ,s4 #cbef ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bd1 #bjah ,mr4 ,hatch 7for himself and ,mr4 ,rubio7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to support businesses in ,puerto ,rico1 extend child tax credits for families in ,puerto ,rico1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,puerto ,rico ,economic ,empowerment ,act of #bjah4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,,title ,i--,tax ,relief ,sec4 #aja4 ,temporary employee payroll tax cut for residents of ,puerto ,rico4 ,sec4 #ajb4 ,equal treatment of ,puerto ,rican families with #a or more children that is currently provided to families with #c or more children4 ,,title ,,ii--,flexibility for ,puerto ,rico in ,small ,business ,administration programs ,sec4 #bja4 ,short title4 ,sec4 #bjb4 ,definitions4 ,subtitle ,a--,lending ,sec4 #baa4 ,microloan program for ,puerto ,rico small business concerns4 ,subtitle ,b--,procurement ,sec4 #bba4 ,priority for surplus property transfers4 ,sec4 #bbb4 ,subcontracting incentives for protege firms that are ,puerto ,rico businesses4 ,sec4 #bbc4 ,additional mentor-protege relationships for protege firms that are ,puerto ,rico businesses4 ,subtitle ,c--,entrepreneurial ,development ,sec4 #bca4 ,,fast grant program for ,puerto ,rico4 ,subtitle ,d--,small ,business ,administration ,oversight ,sec4 #bda4 ,requirement for the ,district ,director of ,puerto ,rico4 ,subtitle ,e--,disaster ,loan ,program ,expansion ,sec4 #bea4 ,amendment to definition of disaster for #g7;b7 loans4 ,subtitle ,f--,amendment to the ,investment ,company ,act of #aidj ,sec4 #bfa4 ,termination of exemption for companies in territories of the ,united ,states4 ,,title ,,iii--,economic statistics ,sec4 #cja4 ,definition4 ,sec4 #cjb4 ,inclusion of ,puerto ,rico in ,census surveys4 ,sec4 #cjc4 ,federal ,statistical ,research ,data ,center4 ,,title ,,iv--,offsets ,sec4 #dja4 ,prevention and ,public ,health ,fund4 ,i ,tax ,relief #aja4 ,temporary employee payroll tax cut for residents of ,puerto ,rico 7a7 ,in general ,notwithstanding any other provision of law1 in the case of a qualified resident of ,puerto ,rico-- 7#a7 there shall be allowed a credit against the tax imposed by section #adja7;a7 of the ,internal ,revenue ,code of #aihf for any taxable year which begins in the payroll tax holiday period an amount equal to #c4a percent of the lesser of-- 7,a7 self-employment income 7as defined in section #adjb7;b7 of such ,code7 for the taxable year2 or 7,b7 net earnings from self-employment 7as defined in section #adjb7;a7 of such ,code7 for the taxable year2 and 7#b7 with respect to remuneration received during the payroll tax holiday period for services performed as an employee 7except amounts received for services performed as an employee of the ,united ,states1 as defined in section #ggja7;a77#i7 of such ,code1 or any agency thereof71 the rate of tax under #caja7;a7 of such ,code shall be #c4a percent 7including for purposes of determining the applicable percentage under sections #cbja7;a7 and #cbaa7;a7 of such ,code74 7b7 ,special rules 7#a7 ,application of rule for special refunds ,in the case of a qualified resident of ,puerto ,rico to whom subsection 7a77#b7 applies1 the first sentence of section #fdac7;c77#a7 of the ,internal ,revenue ,code of #aihf shall be applied by substituting for exceeds the tax with respect to the amount of such wages received in such year which is equal to such contribution and benefit base the following3 exceeds the sum of-- 7#a7 #c4a percent of the lesser of-- 7,a7 the wages received in such year to which section #b7;a77#b7 of the ,puerto ,rico ,economic ,empowerment ,act of #bjah applies1 or 7,b7 the contribution and benefit base1 plus 7#b7 #f4b percent of the lesser of-- 7,a7 the wages received in such year to which such section does not apply1 or 7,b7 the contribution and benefits base reduced 7but not below zero7 by the amount of wages taken into account under paragraph 7#a74 4 7#b7 ,employer liability ,in the case of an employer who receives an attestation from an employee1 in such form and manner as directed by the ,secretary of the ,treasury 7or the ,secretary's delegate71 that such employee is a qualified resident of ,puerto ,rico-- 7,a7 the employer shall not be liable under section #cajb or #cbjb of such ,code for any failure to collect taxes in excess of the rate which applies under this section unless a reasonable person would determine that such attestation is not true and correct2 and 7,b7 if such employee is not a qualified resident of ,puerto ,rico1 to the extent that the amount of any tax imposed by section #caja7;a71 #cbja7;a71 or #cbaa7;a7 of such ,code is not collected by the employer in excess of the rate which would otherwise apply under this section1 such tax shall be paid by the employee4 7c7 ,definitions 7#a7 ,qualified resident ,the term qualified resident means any individual who meets the requirements of section #icg7;a7 of the ,internal ,revenue ,code of #aihf solely based on presence in ,puerto ,rico4 7#b7 ,payroll tax holiday period ,the term payroll tax holiday period means the period beginning after ,june #cj1 #bjah1 and ending before ,july #a1 #bjbj4 7d7 ,employer notification ,the ,secretary of the ,treasury shall notify employers of the payroll tax holiday period in any manner the ,secretary deems appropriate4 7e7 ,transfers of funds 7#a7 ,transfers to federal old-age and survivors insurance trust fund ,there are hereby appropriated to the ,federal ,old-,age and ,survivors ,trust ,fund and the ,federal ,disability ,insurance ,trust ,fund established under section #bja of the ,social ,security ,act 7#db ,u4,s4,c4 #dja7 amounts equal to the reduction in revenues to the ,treasury by reason of the application of subsection 7a74 ,amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such ,trust ,fund had such amendments not been enacted4 7#b7 ,transfers to social security equivalent benefit account ,there are hereby appropriated to the ,social ,security ,equivalent ,benefit ,account established under section #ae;,a7a7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bcan-#a7;a77 amounts equal to the reduction in revenues to the ,treasury by reason of the application of subsection 7a77#b74 ,amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such ,account had such amendments not been enacted4 7#c7 ,coordination with other laws ,for purposes of applying any provision of law other than the provisions of the ,internal ,revenue ,code of #aihf1 the rate of tax in effect under section #caja7;a7 of such ,code shall be determined without regard to the reduction in such rate under this section4 #ajb4 ,equal treatment of ,puerto ,rican families with #a or more children that is currently provided to families with #c or more children 7a7 ,in general ,section #bd of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7i7 ,residents of ,puerto ,rico ,in the case of an individual who is a bona fide resident of ,puerto ,rico during the entire taxable year-- 7#a7 subsection 7d77#a77;,b77ii7 shall be applied 7after application of subsection 7h771 by substituting #a or more qualifying children for #c or more qualifying children1 and 7#b7 for purposes of subclause 7,i7 of such subsection1 such individual's social security taxes for such taxable year shall be determined as if section #aja of the ,puerto ,rico ,economic ,empowerment ,act of #bjah did not apply4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjag4 ,,ii ,flexibility for ,puerto ,rico in ,small ,business ,administration programs #bja4 ,short title ,this title may be cited as the ,puerto ,rico ,opportunity1 ,small ,business ,prosperity1 and ,economic ,revitalization ,act of #bjah4 #bjb4 ,definitions 7a7 ,in general ,in this title3 7#a7 ,administration2 ,administrator ,the terms ,administration and ,administrator mean the ,small ,business ,administration and the ,administrator thereof4 7#b7 ,microloan program ,the term microloan program means the program established under section #g7m7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7m774 7#c7 ,oversight ,board termination date ,the term ,oversight ,board termination date means the date on which the ,oversight ,board established under section #aja of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baba7 terminates4 7#d7 ,puerto ,rico ,the term ,puerto ,rico means the ,commonwealth of ,puerto ,rico4 7#e7 ,puerto ,rico business ,the term ,puerto ,rico business means a small business concern that has its principal office located in the ,commonwealth of ,puerto ,rico4 7#f7 ,small business concern ,the term small business concern has the meaning given the term in section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb74 7b7 ,small ,business ,act ,section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7 is amended by adding at the end the following3 7ee7 ,puerto ,rico business ,in this ,act1 the term ,puerto ,rico business means a small business concern that has its principal office located in the ,commonwealth of ,puerto ,rico4 4 ,a ,lending #baa4 ,microloan program for ,puerto ,rico small business concerns 7a7 ,increase in access to capital for certain intermediaries ,section #g7m77#c77;,c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7m77#c77;,c77 is amended-- 7#a7 by inserting and except as provided in clause 7ii7 after subsection 7a77#c72 7#b7 by striking ,notwithstanding and inserting the following3 7i7 ,in general ,notwithstanding 2 and 7#c7 by adding at the end the following3 7ii7 ,exception for certain ,puerto ,rico businesses 7,i7 ,in general ,no loan shall be made under this subsection if the total amount outstanding and committed to #a covered intermediary 7excluding outstanding grants7 from the business loan and investment fund established by this ,act would1 as a result of such loan1 exceed #f1jjj1jjj in the remaining years of the covered intermediary's participation in the program4 7,,ii7 ,definition ,in this clause1 the term covered intermediary means an intermediary that-- 7aa7 is participating in the program2 and 7bb7 submits to the ,administrator a certification that not less than #bj percent of the microloans made by the intermediary under this subsection1 during such period as the ,administrator may specify1 will be made to ,puerto ,rico businesses4 4 7b7 ,waiver of #be_/ge rule for microloans to ,puerto ,rico small business concerns ,section #g7m77#d77;,e7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7m77#d77;,e77 is amended-- 7#a7 in clause 7i71 by striking ,each and inserting ,except as provided in clause 7iii71 each2 and 7#b7 by adding at the end the following3 7iii7 ,exception for certain intermediaries ,the ,administrator shall waive the requirements of clause 7i7 for an intermediary for which not less than #be percent of the loans made by the intermediary are made to ,puerto ,rico businesses4 4 7c7 ,,sba study ,not later than #a year after the date of enactment of this ,act1 the ,administrator shall conduct a study and submit to the ,committee on ,small ,business and ,entrepreneurship of the ,senate and the ,committee on ,small ,business of the ,house of ,representatives a report on the following3 7#a7 ,the operations 7including services provided1 structure1 size1 and area of operation7 of a representative sample of-- 7,a7 intermediaries that are eligible for participation in the microloan program and that participate in the microloan program2 and 7,b7 intermediaries 7including those operated for profit1 operated as nonprofit organizations1 and affiliated with a ,united ,states institution of higher learning 7as defined in section #cdeb of title #ch1 ,united ,states ,code77 that are so eligible and that do not participate in the microloan program4 7#b7 ,the reasons why intermediaries described in paragraph 7#a77;,b7 choose not to participate in the microloan program4 7#c7 ,recommendations on how to encourage increased participation in the microloan program by intermediaries described in paragraph 7#a77;,b74 7#d7 ,recommendations for increasing the number of intermediaries located in the territories of the ,united ,states or in economically distressed areas 7as defined in section #g7m77#aa77;,d7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7m77#aa77;,d777 that are eligible for participation in the microloan program4 7#e7 ,recommendations on how to decrease the costs associated with participation in the microloan program for eligible intermediaries4 7d7 ,,gao study on microloan intermediary practices ,not later than #a year after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to the ,committee on ,small ,business and ,entrepreneurship of the ,senate and the ,committee on ,small ,business of the ,house of ,representatives a report evaluating-- 7#a7 oversight of the microloan program by the ,administration1 including oversight of intermediaries participating in the microloan program2 and 7#b7 the specific processes used by the ,administration to ensure-- 7,a7 compliance by intermediaries participating in the microloan program2 and 7,b7 the overall performance of the microloan program4 ,b ,procurement #bba4 ,priority for surplus property transfers ,section #g7;j77#ac77;,f7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;j77#ac77;,f77 is amended by adding at the end the following3 7iii7 7,i7 ,in this clause1 the term covered period means the period beginning on the date of enactment of this clause and ending on the date on which the ,oversight ,board established under section #aja of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baba7 terminates4 7,,ii7 ,the ,administrator may transfer technology or surplus property under clause 7i7 on a priority basis to a ,puerto ,rico business if the ,puerto ,rico business meets the requirements for such a transfer1 without regard to whether the ,puerto ,rico business is a ,program ,participant4 4 #bbb4 ,subcontracting incentives for protege firms that are ,puerto ,rico businesses ,section #de7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fegr7a77 is amended by adding at the end the following3 7#c7 ,puerto ,rico small business concerns 7,a7 ,in general ,during the period beginning on the date of enactment of this paragraph and ending on the date on which the ,oversight ,board established under section #aja of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baba7 terminates1 the ,administrator shall provide additional incentives to covered mentors1 including providing additional credit for subcontracts awarded to covered proteges and costs incurred for providing training to covered proteges4 7,b7 ,definitions ,in this paragraph-- 7i7 the term covered mentor means a mentor that enters into an agreement under this ,act1 or under any mentor-protege program approved under subsection 7b77#a71 with a covered protege2 and 7ii7 the term covered protege means a protege-- 7,i7 of a covered mentor2 and 7,,ii7 that has its principal office located in the ,commonwealth of ,puerto ,rico4 4 #bbc4 ,additional mentor-protege relationships for protege firms that are ,puerto ,rico businesses ,section #de7;b77#c77;,a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fegr7b77#c77;,a77 is amended by inserting 1 except that such restrictions shall not apply to a relationship that was entered into before the date on which the ,oversight ,board established under section #aja of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baba7 terminates and in which the principal office of the protege is located in the ,commonwealth of ,puerto ,rico after each participant4 ,c ,entrepreneurial ,development #bca4 ,,fast grant program for ,puerto ,rico 7a7 ,in general ,section #cd of the ,small ,business ,act 7#ae ,u4,s4,c4 #feg;d7 is amended by adding at the end the following3 7j7 ,,fast grant program for ,puerto ,rico 7#a7 ,establishment ,the ,administrator shall establish a program that shall be part of the ,,fast program to make awards to1 or enter into cooperative agreements with1 a ,puerto ,rico business4 7#b7 ,technical assistance ,if no applicant is selected to receive assistance under this subsection1 the ,administrator shall use amounts appropriated to carry out this subsection to provide business advice and counseling to a ,puerto ,rico business4 7#c7 ,waiver of matching requirements ,the ,administrator may1 upon application1 waive the matching requirements under subsection 7e77#b7 for an applicant that receives an award or has in effect a cooperative agreement under this subsection4 7#d7 ,funding ,there is authorized to be appropriated #ajj1jjj for fiscal year #bjai1 and each fiscal year thereafter1 to carry out this subsection4 4 7b7 ,prospective repeal ,effective on the ,oversight ,board termination date1 section #cd of the ,small ,business ,act 7#ae ,u4,s4,c4 #feg;d71 as amended by subsection 7a71 is amended by striking subsection 7j74 ,d ,small ,business ,administration ,oversight #bda4 ,requirement for the ,district ,director of ,puerto ,rico 7a7 ,in general ,during the period beginning on the date of enactment of this ,act and ending on the ,oversight ,board termination date1 the director of the district office of the ,administration located in ,puerto ,rico shall submit directly to ,congress and the ,administrator an annual report on the activities of the ,administration in ,puerto ,rico4 7b7 ,coordination ,in preparing each report described in subsection 7a71 the director described in such subsection shall consult with other ,federal agencies to collect data on grants1 programs1 and outreach activities carried out by such agencies that affect any ,puerto ,rico business4 ,e ,disaster ,loan ,program ,expansion #bea4 ,amendment to definition of disaster for #g7;b7 loans 7a7 ,in general ,section #c7k77#b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7k77#b77 is amended-- 7#a7 in subparagraph 7,b71 by striking and at the end2 7#b7 in subparagraph 7,c71 striking the period and inserting 2 and2 and 7#c7 by adding at the end the following3 7,d7 communicable diseases for which the ,federal ,government issues a travel alert or travel warning4 4 7b7 ,applicability ,the amendment made by subsection 7a7 shall apply to a communicable disease-- 7#a7 for which the ,federal ,government issues a travel alert or travel warning before1 on1 or after the date of enactment of this ,act2 and 7#b7 the effects of which are experienced on or after the date of enactment of this ,act4 ,f ,amendment to the ,investment ,company ,act of #aidj #bfa4 ,termination of exemption for companies in territories of the ,united ,states 7a7 ,in general ,section #f7;a7 of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#f7;a77 is amended-- 7#a7 by striking paragraph 7#a72 and 7#b7 by redesignating paragraphs 7#b7 through 7#e7 as paragraphs 7#a7 through 7#d71 respectively4 7b7 ,effective date and safe harbor 7#a7 ,effective date ,except as provided in paragraph 7#b71 the amendment made by subsection 7a7 shall take effect on the date of enactment of this ,act4 7#b7 ,safe harbor ,with respect to a company that is exempt under section #f7;a77#a7 of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#f7;a77#a771 as in effect on the day before the date of enactment of this ,act1 the amendment made by subsection 7a7 shall take effect on the date that is #c years after the date of enactment of this ,act4 7#c7 ,extension of safe harbor ,the ,securities and ,exchange ,commission1 by rule and regulation upon its own motion1 or by order upon application1 may conditionally or unconditionally1 under section #f7;c7 of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#f7;c771 further delay the effective date for a company described in paragraph 7#b7 to be not later than the date that is #f years after the date of enactment of this ,act if1 before the end of the initial #c-year period1 the ,commission determines that such a rule1 regulation1 motion1 or order is necessary or appropriate in the public interest and for the protection of investors4 ,,iii ,economic statistics #cja4 ,definition ,in this title1 the term ,secretary means the ,secretary of ,commerce1 acting through the ,director of the ,bureau of the ,census4 #cjb4 ,inclusion of ,puerto ,rico in ,census surveys 7a7 ,study on inclusion in ,current ,population ,survey ,the ,secretary shall study the feasibility of including ,puerto ,rico in the ,current ,population ,survey conducted by the ,secretary4 7b7 ,interagency working group on improving data 7#a7 ,establishment ,the ,chief ,statistician of the ,united ,states shall establish a technical interagency working group to study the most effective approach to improving the quality and availability of data about or from ,puerto ,rico for the purpose of ,federal statistical programs4 7#b7 ,report ,not later than ,october #ca1 #bjah1 and on a quarterly basis thereafter1 the technical interagency working group established under paragraph 7#a7 shall submit a report on the activities and findings of the working group to-- 7,a7 the ,committee on ,finance of the ,senate2 and 7,b7 the ,committee on ,ways and ,means of the ,house of ,representatives4 7c7 ,inclusion in other surveys and programs of the ,bureau of the ,census ,the ,secretary shall conduct a proof of concept for including1 or expanding the inclusion of1 ,puerto ,rico in each of the following surveys and programs conducted by the ,secretary3 7#a7 ,the ,census of ,governments and ,related ,annual ,programs4 7#b7 ,the ,survey of ,business ,owners4 7#c7 ,the ,building ,permits ,survey4 7#d7 ,the ,quarterly ,workforce ,indicators1 derived from the ,longitudinal ,employer-,household ,dynamics ,program4 7#e7 ,the ,statistics of ,u4,s4 ,businesses4 #cjc4 ,federal ,statistical ,research ,data ,center 7a7 ,in general ,the ,secretary shall establish a facility1 to be known as the ,federal ,statistical ,research ,data ,center1 in ,san ,juan1 ,puerto ,rico4 7b7 ,dual capacity ,the facility established under subsection 7a7 shall serve as both-- 7#a7 an office of the ,international ,trade ,management ,division of the ,bureau of the ,census2 and 7#b7 a research data center of the ,bureau of the ,census4 ,,iv ,offsets #dja4 ,prevention and ,public ,health ,fund ,section #djjb7;b7 of the ,patient ,protection and ,affordable ,care ,act 7#db ,u4,s4,c4 #cjju-#aa7;b771 as amended by section #ecaai of ,public ,law #aae-abc1 is amended-- 7#a7 in paragraph 7#c71 by striking #ijj1jjj1jjj and inserting #hda1jjj1jjj2 7#b7 in paragraph 7#d71 by striking #ijj1jjj1jjj and inserting #hdh1jjj1jjj2 7#c7 by striking paragraphs 7#e7 through 7#h72 7#d7 by redesignating paragraph 7#i7 as paragraph 7#g72 and 7#e7 by inserting after paragraph 7#d7 the following new paragraphs3 7#e7 for each fiscal year during the period of fiscal years #bjbj through #bjbc1 #djj1jjj1jjj2 7#f7 for each fiscal year during the period of fiscal years #bjbd through #bjbg1 #ejj1jjj1jjj2 and2 4