,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hche ,,in ,,the ,,house ,,of ,,representatives ,september #bd1 #bjbj,mr4 ,la,hood introduced the following bill2 which was referred to the ,committee on ,oversight and ,reform ,a ,,bill ,to establish the ,taxpayer ,protection ,program to provide forgivable loans to ,state1 territory1 ,tribal1 and local governments1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,taxpayer ,protection ,act of #bjbj4 #b4 ,taxpayer ,protection ,program 7a7 ,establishment ,the ,secretary of the ,treasury shall establish the ,taxpayer ,protection ,program to provide forgivable loans to ,state1 territory1 ,tribal1 and local governments1 in accordance with this section4 7b7 ,application ,any ,state1 territory1 ,tribal1 or local government that seeks to receive a loan under the ,program shall submit an application in such form and manner1 and containing such information1 as the ,secretary may require4 7c7 ,appropriation2 loan amounts 7#a7 ,appropriation ,out of any money in the ,treasury not otherwise appropriated1 there are appropriated to the ,secretary to carry out the ,program1 #ahf1jjj1jjj1jjj4 7#b7 ,state loan amounts 7,a7 ,in general ,of amounts appropriated under paragraph 7#a71 the ,secretary shall use #ajj1jjj1jjj1jjj to carry out the ,program with respect to the ,states4 7,b7 ,reserved amount ,the ,secretary shall reserve #hce1jjj1jjj of the amount described under subparagraph 7,a7 for each ,state4 7,c7 ,remainder ,the ,secretary shall apportion the remaining #eh1bej1jjj1jjj to the ,states based on a ,state's relative population proportion amount1 calculated in the manner described under section #fja7;c77#c7 of the ,social ,security ,act4 7#c7 ,territories ,of amounts appropriated under paragraph 7#a71 the ,secretary shall use #c1jjj1jjj1jjj to carry out the ,program with respect to the ,district of ,columbia and the territories of the ,united ,states1 with each such ,district or territory receiving an amount based on the relative population proportion amount1 calculated in the manner described under section #fja7;c77#f7 of the ,social ,security ,act4 7#d7 ,tribal governments ,of amounts appropriated under paragraph 7#a71 the ,secretary shall use #h1jjj1jjj1jjj to carry out the ,program with respect to ,tribal governments1 with each ,tribal government receiving an amount based on increased expenditures1 calculated in the manner described under section #fja7;c77#g7 of the ,social ,security ,act4 7#e7 ,local governments 7,a7 ,in general ,of amounts appropriated under paragraph 7#a71 the ,secretary shall use #ge1jjj1jjj1jjj to carry out the ,program with respect to local governments of ,states4 7,b7 ,aggregate reservation for local governments of a ,state ,with respect to a particular ,state1 the ,secretary shall reserve a percentage of the amount of money described under subparagraph 7,a7 for the local governments of the ,state1 in the aggregate1 equal to the percentage of the amount described under paragraph 7#b77;,b7 that is reserved for such ,state4 7,c7 ,reservation for metropolitan cities ,the ,secretary shall reserve #bf1bej1jjj1jjj of the amount described under subparagraph 7,a7 for metropolitan cities4 7,d7 ,reservation for non-metropolitan non-county general purpose local governments ,the ,secretary shall reserve #aa1bej1jjj1jjj of the amount described under subparagraph 7,a7 for local governments that are not metropolitan cities or counties4 7,e7 ,reservation for counties 7i7 ,in general ,the ,secretary shall reserve #cg1ejj1jjj1jjj of the amount described under subparagraph 7,a7 for counties1 with each county receiving an amount based on the relative population of the county compared to the aggregate population of counties described under this subparagraph with respect to the ,state in which the counties are located4 7ii7 ,non-inclusion of metropolitan city population ,in calculating the population of a county under clause 7i71 the population of the county shall not include any resident of the county that is also a resident of a metropolitan city4 7d7 ,use of funds ,loan amounts received under this section-- 7#a7 may be used-- 7,a7 to cover revenue losses caused by business interruptions1 unemployment1 or other economic hardship directly caused by the ,,covid-#ai pandemic2 and 7,b7 for infrastructure or essential government service expenditures1 including all general operating expenses2 and 7#b7 may not be used for the service of any debt obligation or unfunded liability for employee retirement benefits4 7e7 ,transparency ,each recipient of a loan under the ,program shall comply with the following3 7#a7 ,accounting ,loan funds shall be accounted for separately from all other revenue sources4 7#b7 ,website 7,a7 ,in general ,the recipient shall maintain a publicly available website that prominently displays1 either on its homepage or on a page linked directly from the homepage1 a record of the following3 7i7 ,the dollar amount of each expenditure of funds received under the ,program4 7ii7 ,the vendor or recipient of each such expenditure of funds4 7iii7 ,the purpose and date of each such expenditure of funds4 7,b7 ,timing ,the information described under subparagraph 7,a7 shall be made available on the website within #cj days of the related expenditure4 7f7 ,disbursement2 terms and interest rates 7#a7 ,disbursement 7,a7 ,in general ,loans under the ,program shall be disbursed quarterly1 in accordance with subparagraph 7,b71 until the earlier of-- 7i7 the date on which the full loan disbursement has been made2 or 7ii7 ,june #cj1 #bjbb4 7,b7 ,limitation on quarterly disbursements ,a recipient of a loan under the ,program may not receive a disbursement with respect to a particular quarter that is more than the decrease in-- 7i7 the recipient's own-source revenue collections over the previous fiscal quarter1 from 7ii7 the recipient's own-source revenue collections for the same fiscal quarter in #bjai4 7#b7 ,interest rate ,the ,secretary shall set interest rates on loans under the ,program based on the credit strength of the recipient1 using the same calculation used by the ,municipal ,lending ,facility of the ,board of ,governors of the ,federal ,reserve ,system4 7#c7 ,repayment ,with respect to a loan made under the ,program that is not forgiven1 the recipient shall be required to repay the loan in quarterly payments beginning on ,june #cj1 #bjbb4 7g7 ,loan forgiveness 7#a7 ,in general ,the ,secretary shall forgive a loan made to a recipient under the ,program if the recipient is-- 7,a7 a local government other than a county-- 7i7 with a population of less than #bej1jjj2 or 7ii7 with a population of #bej1jjj or more that has sound pension funds2 7,b7 a county-- 7i7 with a population of less than #ejj1jjj2 or 7ii7 with a population of #ejj1jjj or more that has sound pension funds2 or 7,c7 a ,state that1 as of ,june #cj1 #bjbb-- 7i7 has sound pension funds2 7ii7 has a truly balanced budget2 7iii7 has rainy-day fund protections2 and 7iv7 does not use a fixed cost of living adjustment with respect to any pension system administered by the ,state4 7#b7 ,treatment of governments establishing sound pension funds 7,a7 ,in general ,with respect to a ,state1 a local government described under paragraph 7#a77;,a77ii71 or a county described under paragraph 7#a77;,b77ii7 that does not have sound pension funds at the time of application for assistance under the ,program1 such ,state1 local government1 or county shall only be eligible to receive loan forgiveness under paragraph 7#a7 if-- 7i7 the ,state1 local government1 or county has sound pension funds before such forgiveness2 and 7ii7 any changes made to employer contributions schedules to achieve sound pension funds do not result in a contribution schedule which increases estimated future actuarially determined employer contributions relative to the contribution schedule in place on ,july #a1 #bjbj4 7,b7 ,actuarially determined employer contributions ,for purposes of subparagraph 7,a77ii71 actuarially determined employer contributions shall follow generally accepted actuarial principles1 as defined by the ,secretary4 7h7 ,findings and sense of ,congress related to ,state benefit plans 7#a7 ,findings ,the ,congress finds the following3 7,a7 ,securing the health1 safety1 welfare and property of1 and the pursuit of happiness by1 residents is each ,state's supreme obligation4 7,b7 ,state reported unfunded pension liabilities among the several ,states at the end of fiscal year #bjah totaled #a1bcg1gia1cgb1jjj4 7,c7 ,the economic impact of the ,,covid-#ai pandemic is likely to further increase the unfunded liabilities of employee benefit plans of the ,states and increase the annual cost of these systems1 creating fiscal tension between funding essential government services and servicing unfunded liabilities4 7,d7 ,the ,,covid-#ai pandemic has caused reductions in expected revenues of the ,states while at the same time increasing public demand for essential government services4 7#b7 ,sense of ,congress ,it is the sense of the ,congress that if and to the extent a ,state's legislature determines that performance of its supreme obligation is impaired by funding otherwise required under any health1 welfare1 retirement1 or other benefit plan offered to its employees1 then that ,state's legislature1 with its ,governor's consent1 may change the terms of any such benefit plan to the extent it was not contemporaneously funded in any manner it determines to be necessary and proper1 notwithstanding the terms of any ,state law or constitution to the contrary4 7i7 ,definitions ,in this section3 7#a7 ,indian ,tribe ,the term ,indian ,tribe has the meaning given that term in section #d7;e7 of the ,indian ,self-,determination and ,education ,assistance ,act 7#be ,u4,s4,c4 #ecjd7;e774 7#b7 ,local government ,with respect to a ,state1 the term local government means a county1 municipality1 town1 township1 village1 parish1 borough1 or other unit of general government below the ,state level4 7#c7 ,metropolitan city ,the term metropolitan city has the meaning given that term under section #ajb7;a7 of the ,housing and ,community ,development ,act of #aigd 7#db ,u4,s4,c4 #ecjb7;a774 7#d7 ,program ,the term ,program means the ,taxpayer ,protection ,program4 7#e7 ,rainy-day fund protections 7,a7 ,in general ,with respect to a ,state1 the term rainy-day fund protections means that the ,state-- 7i7 has a fund that-- 7,i7 is intended to be used during emergency periods when revenues decrease1 to offset such decrease2 and 7,,ii7 is subject to safeguards to prevent use of amounts in the funds for nonemergency purposes1 such as requiring a resolution approved by a legislative supermajority that an emergency or disaster has occurred before amounts may be appropriated from the fund2 and 7ii7 has enacted a ,state statute-- 7,i7 setting a target for the fund of holding reserves of #e to #aj percent of annual general revenues2 and 7,,ii7 under which amounts are automatically deposited in the fund in order to meet such target1 during any year in which the economy is not in a declared recession4 7,b7 ,alternate certification ,notwithstanding subparagraph 7,a71 a ,state has rainy-day fund protections if the ,state certifies to the ,secretary that-- 7i7 the ,state has protections for the ,state's rainy-day fund that are at least as effective as those described under subparagraph 7,a72 and 7ii7 the ,state's rainy-day fund held an amount equal to more than #e percent of the ,state's #bjai annual operating budget in reserve as of ,january #a1 #bjbj4 7#f7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 7#g7 ,sound pension funds ,with respect to a recipient under the ,program1 the recipient has sound pension funds if-- 7,a7 all pension funds of the recipient are based on generally accepted actuarial principles1 as defined by the ,secretary1 taking into account the ,actuarial ,standards of ,practice promulgated by the ,actuarial ,standards ,board2 and 7,b7 the amortization or employer contribution schedules of such plans target a #ajj percent pension funding ratio over no more than #be years4 7#h7 ,territory ,the term territory means the ,district of ,columbia1 ,puerto ,rico1 the ,u4,s4 ,virgin ,islands1 ,guam1 the ,northern ,mariana ,islands1 and ,american ,samoa4 7#i7 ,tribal government ,the term ,tribal government means the recognized governing body of an ,indian ,tribe4 7#aj7 ,truly balanced budget ,with respect to a ,state1 the term truly balanced budget means that-- 7,a7 the ,state has a constitutional or statutory requirement that-- 7i7 operating budgets achieve end of year balance2 and 7ii7 deficits may not be carried year to year2 and 7,b7 for purposes of calculating revenues to determine whether the ,state's operating budget has achieved an end of year balance1 such revenues may only include actual monies received1 and do not include transfers from other ,state funds or borrowing proceeds4