,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hdhe ,,in ,,the ,,house ,,of ,,representatives ,october #a1 #bjbj ,mr4 ,fitzpatrick 7for himself and ,mr4 ,quigley7 introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committees on ,ways and ,means1 and the ,budget1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to establish a #cj1jjj1jjj1jjj ,health ,club ,recovery ,fund to provide structured relief to health and fitness service establishments through ,december #ca1 #bjbj1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,health and ,fitness ,recovery ,act of #bjbj4 #b4 ,definitions ,in this ,act3 7#a7 ,affiliated business ,the term affiliated business means a business in which an eligible entity has an equity or right to profit distributions of not less than #ej percent1 or in which an eligible entity has the contractual authority to control the direction of the business1 provided that such affiliation shall be determined as of any arrangements or agreements in existence as of ,march #ac1 #bjbj4 7#b7 ,covered period ,the term covered period means the period beginning on ,february #ae1 #bjbj1 and ending on ,december #ca1 #bjbj4 7#c7 ,eligible entity ,the term eligible entity-- 7,a7 subject to subparagraph 7,b71 means a health club1 health or fitness studio1 fitness center1 gym1 or fitness or health spa2 and 7,b7 does not include an entity that is1 or is part of1 a governmental facility4 7#d7 ,fund ,the term ,fund means the ,health ,club ,recovery ,fund established under section #c4 7#e7 ,payroll costs ,the term payroll costs has the meaning given the term in section #g7;a77#cf77;,a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#cf77;,a774 7#f7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 #c4 ,health ,club ,recovery ,fund 7a7 ,in general ,there is established in the ,treasury of the ,united ,states a fund to be known as the ,health ,club ,recovery ,fund4 7b7 ,appropriations 7#a7 ,in general ,there is appropriated to the ,fund1 out of amounts in the ,treasury not otherwise appropriated1 #cj1jjj1jjj1jjj1 to remain available until ,december #ca1 #bjbj4 7#b7 ,remainder to ,treasury ,any amounts remaining in the ,fund after ,december #ca1 #bjbj1 shall be deposited in the general fund of the ,treasury4 7c7 ,use of funds ,the ,secretary shall use amounts in the ,fund to make grants described in section #d4 #d4 ,health club recovery grants 7a7 ,in general ,the ,secretary shall award grants to eligible entities to provide relief to such entities during the ,,covid-#ai pandemic4 7b7 ,application 7#a7 ,in general ,an eligible entity desiring a grant under this section shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require4 7#b7 ,certification ,an eligible entity applying for a grant under this section shall make a good faith certification-- 7,a7 that the uncertainty of current economic conditions makes necessary the grant request to support the ongoing operations of the eligible entity2 7,b7 acknowledging that funds will be used to retain workers and maintain payroll or for other allowable expenses described in subsection 7e72 7,c7 that the eligible entity does not have an application pending for a grant under subsection 7a77#cf7 or 7b77#b7 of section #g of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7 for the same purpose and duplicative of amounts applied for or received under this section2 and 7,d7 that1 during the covered period1 the eligible entity has not received amounts under subsection 7a77#cf7 or 7b77#b7 of section #g of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7 for the same purpose and duplicative of amounts applied for or received under this section4 7#c7 ,hold harmless ,the ,secretary shall not reduce the amount of a grant to an eligible entity under this section1 or otherwise penalize such eligible entity1 on the basis of the eligible entity having failed to hire or rehire employees contrary to assurances made by the eligible entity in its grant application1 so long as the eligible entity is able to document-- 7,a7 an inability to rehire individuals who were employees of the eligible entity on ,february #ae1 #bjbj2 and 7,b7 an inability to hire similarly qualified employees for unfilled positions on or before ,december #ca1 #bjbj4 7c7 ,priority in awarding grants 7#a7 ,in general ,subject to paragraph 7#b71 the ,secretary shall award grants to eligible entities under subsection 7a7 in the order in which completed applications are received by the ,secretary in accordance with this section4 7#b7 ,priority ,during the initial #ad-;day period in which the ,secretary awards grants under this section1 the ,secretary shall-- 7,a7 prioritize awarding grants to eligible entities serving marginalized and underrepresented communities1 with a focus on women-1 veteran-1 and minority-owned and operated eligible entities serving such communities2 and 7,b7 only award grants to eligible entities with annual revenues of less than #a1ejj1jjj4 7d7 ,grant amount 7#a7 ,aggregate maximum amount ,the aggregate amount of grants made to an eligible entity and any affiliate businesses of the eligible entity under this section shall not exceed the lesser of-- 7,a7 #aj1jjj1jjj2 or 7,b7 #aj percent of the sum of the annual revenues of the eligible entity and all affiliate businesses of the eligible entity for the calendar year preceding the award of the grant4 7#b7 ,determination of grant amount 7,a7 ,in general ,the amount of a grant made to an eligible entity under this section shall be based on the difference in revenues or estimated revenues of the eligible entity during a calendar quarter in #bjbj selected by the eligible entity as compared to #ie percent of the revenues of the eligible entity in the same calendar quarter in #bjai4 7,b7 ,verification ,an eligible entity shall submit to the ,secretary such revenue verification documentation as the ,secretary may require to determine the amount of a grant under subparagraph 7,a74 7,c7 ,repayment ,any amount of a grant made under this section to an eligible entity based on estimated revenues in a calendar quarter in #bjbj that is above the actual revenues of the eligible entity during that calendar quarter shall be converted to a loan that has-- 7i7 an interest rate of #a percent2 and 7ii7 a maturity date of #aj years beginning on ,january #a1 #bjba4 7#c7 ,no duplication of benefits ,an eligible entity that received a loan under section #g7;a77#cf7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#cf77 may not apply for or use grant amounts under this section for the same expenses for which the eligible entity received the loan4 7#d7 ,limitation ,an eligible entity may not receive more than #a grant under this section4 7e7 ,use of funds 7#a7 ,allowable uses ,during the covered period1 an eligible entity that receives a grant under this section may use the grant funds for-- 7,a7 payroll costs2 7,b7 payments of principal or interest on any mortgage obligation2 7,c7 rent payments1 including rent under a lease agreement2 7,d7 utilities2 7,e7 maintenance expenses1 including construction or reconfiguration to accommodate social distancing requirements2 7,f7 supplies1 including protective equipment and cleaning materials2 7,g7 debt obligations to suppliers that were incurred before the covered period2 and 7,h7 any other expenses that the ,secretary determines to be essential to maintaining the eligible entity4 7#b7 ,returning funds ,if an eligible entity that receives a grant under this section permanently ceases operations on or before ,december #ca1 #bjbj1 the eligible entity shall return to the ,treasury any funds that the eligible entity received through the grant and did not use for the allowable expenses under paragraph 7#a74 7#c7 ,conversion to loan ,any grant amounts received by an eligible entity under this section that are unused after ,december #ca1 #bjbj1 shall be immediately converted to a loan with-- 7,a7 an interest rate of #a percent2 and 7,b7 a maturity date of #aj years4 7f7 ,taxability ,for purposes of the ,internal ,revenue ,code of #aihf-- 7#a7 the amount of a grant awarded to an eligible entity under this section shall be excluded from the gross income of the eligible entity2 7#b7 no deduction shall be denied or reduced1 no tax attribute shall be reduced1 and no basis increase shall be denied1 by reason of the exclusion from gross income provided by paragraph 7#a72 and 7#c7 an eligible entity that receives a grant under this section shall not be eligible for the credit described in section #bcja of the ,,cares ,act 7,public ,law #aaf-acf74 7g7 ,regulations ,not later than #ae days after the date of enactment of this ,act1 the ,secretary shall issue regulations to carry out this section without regard to the notice and comment requirements under section #eec of title #e1 ,united ,states ,code4 7h7 ,appropriations for staffing and administrative expenses 7#a7 ,in general ,there is appropriated to the ,secretary1 out of amounts in the ,treasury not otherwise appropriated1 #bjj1jjj1jjj1 to remain available until ,december #ca1 #bjbj1 for staffing and administrative expenses related to administering grants awarded under this section4 7#b7 ,set aside ,of amounts appropriated under paragraph 7#a71 #fj1jjj1jjj shall be allocated for outreach to traditionally marginalized and underrepresented communities1 with a focus on women-1 veteran-1 and minority-owned and operated eligible entities1 including the creation of a resource center targeted toward these communities4 #e4 ,emergency designation 7a7 ,in general ,the amounts provided by this ,act are designated as an emergency requirement pursuant to section #d7;g7 of the ,statutory ,pay-,as-,you-,go ,act of #bjaj 7#b ,u4,s4,c4 #icc7;g774 7b7 ,designation in ,senate ,in the ,senate1 this ,act is designated as an emergency requirement pursuant to section #daab7;a7 of ,h4 ,con4 ,res4 #ga 7#aaeth ,congress71 the concurrent resolution on the budget for fiscal year #bjah4