,,ii  #aafth ,,congress  #b;d ,session  
,s4 #dcjh  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bc1     
#bjbj,ms4 ,sinema 7for herself1 ,mr4    
,cornyn1 and ,ms4 ,harris7 introduced   
the following bill2 which was read twice
 and referred to the ,committee on      
,finance  ,a ,,bill  ,to amend the      
,social ,security ,act to include       
special districts in the coronavirus    
relief fund1 to direct the ,secretary to
 include special districts as an        
eligible issuer under the ,municipal    
,liquidity ,facility1 and for other     
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,special ,districts 
,provide ,essential ,services ,act4  #b4
 ,inclusion of special districts in the 
coronavirus relief fund  7a7 ,in general
 ,section #fja7;a7 of the ,social       
,security ,act 7#db ,u4,s4,c4 #hja7;a77 
is amended by adding at the end the     
following new paragraph3  7#c7 ,funds   
for special districts ,if an amount in  
excess of #aej1jjj1jjj1jjj is           

appropriated for payments made under    
this section1 special districts shall be
 eligible for payments from the portion 
of such excess amount paid to ,states in
 accordance with subsection 7c77#f74  4 
7b7 ,amount for special districts       
,section #fja7;c7 of the ,social        
,security ,act 7#db ,u4,s4,c4 #hja7;c77 
is amended-- 7#a7 by redesignating      
paragraphs 7#f7 through 7#h7 as         
paragraphs 7#h7 through 7#aj71          
respectively2 and  7#b7 by inserting    
after paragraph 7#e7 the following new  
paragraphs3  7#f7 ,special districts    
7,a7 ,in general ,if a portion of any   
excess amount described in subsection   
7a77#c7 is paid to a ,state1 the ,state 
shall allocate at least #e percent of   
such portion for distributing payments  
to special districts in the ,state that 
submit to the ,governor of the ,state or
 the entity designated by the ,governor 
to distribute such payments 7referred to
 in this paragraph as the designated    
payment entity7 a request for a payment 

during the ,,covid-#ai emergency and    
information described in subparagraph   
7,b7 demonstrating the need for the     
payment1 which the ,governor of the     
,state or the designated payment entity 
has determined1 on the basis of a good  
faith effort1 is accurate4  7,b7        
,information described ,information     
described in this subparagraph is       
written documentation demonstrating with
 respect to a comparable period before  
the ,,covid-#ai emergency that the      
special district has experienced or is  
likely to experience during the         
,,covid-#ai emergency-- 7i7 reduced     
revenue or operational funding derived  
from provided services1 taxes1 fees1 or 
other sources of revenue2  7ii7 reduced 
indirect funding from the ,federal      
,government1 the ,state1 or a unit of   
general government below the ,state     
level2 or  7iii7 as a result of the     
,,covid-#ai emergency1 increased        
expenditures necessary to continue      
operations4  7,c7 ,amount of payment    

7i7 ,in general ,subject to clauses 7ii7
 and 7iii71 the amount of the payment   
for a special district shall be         
determined by the ,governor or the      
,state or the designated payment entity1
 taking into consideration the extent of
 a projected budget shortfall for the   
special district during the ,,covid-#ai 
emergency and the need of the special   
district to supplement projected        
revenue4  7ii7 ,limitation ,except as   
provided in clause 7iii71 the amount    
paid to a special district shall not    
exceed the amount of expenditures made  
by the special district for any quarter 
of calendar year #bjai4  7iii7          
,exception for providers of essential   
critical infrastructure sector services 
,if a special district provides         
essential critical infrastructure sector
 services 7as defined by the            
,cybersecurity and ,infrastructure      
,security ,agency of the ,department of 
,homeland ,security71 the amount paid to
 the special district may exceed the    

limit applicable under clause 7ii74     
7iv7 ,rule of construction ,nothing in  
the preceding clauses of this           
subparagraph shall be construed as      
requiring payment of an amount          
sufficient to provide a special district
 with full operational funding during   
the ,,covid-#ai emergency4  7,d7        
,responsible authority for recoupment   
,if it is determined that a payment made
 to a special district did not comply   
with the requirements of the preceding  
subparagraphs1 or was otherwise         
fraudulent or improper1 the special     
district shall be liable for the debt   
owed to the ,federal ,government under  
subsection 7f71 unless all or a part of 
the basis for such determination is that
 the determination required under       
subparagraph 7,a7 regarding the accuracy
 of the information demonstrating the   
need for the payment was not made in    
good faith1 in which case the ,state    
shall be liable for all or a part of    
such debt1 as the ,secretary determines 

appropriate4  7,e7 ,deadline for        
distribution of funds ,payments to      
special districts in a ,state shall be  
distributed not later than #fj days     
after the ,state receives a payment from
 any excess amount described in         
subsection 7a77#c74  7,f7 ,,covid-#ai   
emergency ,for purposes of this         
paragraph1 the term ,,covid-#ai         
emergency means the public health       
emergency declared by the ,secretary of 
,health and ,human ,services pursuant to
 section #cai of the ,public ,health    
,service ,act on ,january #ca1 #bjbj1   
entitled ,determination that a ,public  
,health ,emergency ,exists ,nationwide  
as the ,result of the #bjai ,novel      
,coronavirus and includes any renewal of
 such declaration pursuant to such      
section #cai4  7#g7 ,excess funds waiver
  7,a7 ,in general ,if a ,state has     
allocated funds from a payment to the   
,state described in paragraph 7#f7 to   
special districts in that ,state1 but   
has not met the #e percent allocation   

requirement of that paragraph1 the      
,governor of the ,state may submit to   
the ,secretary1 in writing1 a request   
for an excess funds waiver to exempt the
 ,state from having to make additional  
allocations from such funds to make up  
the remainder of such #e percent        
requirement1 and to allow the ,state to 
use the funds remaining in accordance   
with this section4  7,b7 ,requirements  
,a waiver request submitted under       
subparagraph 7,a7 shall provide-- 7i7   
information regarding how funds from the
 payment to the ,state described in     
paragraph 7#f7 were allocated to special
 districts in the ,state and otherwise  
used2 and  7ii7 an explanation why the  
requirement for the ,state to meet the  
#e percent allocation requirement of    
paragraph 7#f7 should be waived4  7,c7  
,deadlines  7i7 ,waiver request ,a      
request for an excess funds waiver shall
 be submitted to the ,secretary not     
later than #fj days after the ,state    
receives a payment described in         

paragraph 7#f74  7ii7 ,approval or      
disapproval ,the ,secretary shall       
approve or disapprove a waiver request  
submitted under subparagraph 7,a71 in   
writing1 not later than #ad days after  
the ,secretary receives the request4  4 
7c7 ,definition of special district     
,section #fja7;g7 of the ,social        
,security ,act 7#db ,u4,s4,c4 #hja7;g77 
is amended-- 7#a7 by redesignating      
paragraphs 7#d7 through 7#e7 as         
paragraphs 7#e7 through 7#f71           
respectively2 and  7#b7 by inserting    
after paragraph 7#c7 the following new  
paragraph3  7#d7 ,special district ,the 
term special district means a political 
subdivision of a ,state1 formed pursuant
 to general law or special act of the   
,state1 for the purpose of performing   
one or more governmental or proprietary 
functions4  4  7d7 ,treasury ,,ig       
oversight authority ,section            
#fja7;f77#b7 of such ,act 7#db ,u4,s4,c4
 #hja7;f77#b77 is amended-- 7#a7 by     
inserting or that a special district or 

,state has not complied with the        
requirements of paragraph 7#f7 or 7#g7  
of subsection 7c7 7as applicable71 after
 subsection 7d712 and  7#b7 by striking 
such subsection and inserting subsection
 7d7 or paragraph 7#f7 or 7#g7 of       
subsection 7c7 7as applicable74  7e7    
,update to guidance ,the ,secretary of  
the ,treasury shall update any guidance 
issued with respect to the ,coronavirus 
,relief ,fund established under section 
#fja of the ,social ,security ,act 7#db 
,u4,s4,c4 #hja7 to reflect the inclusion
 of special districts as eligible for   
payments from amounts appropriated under
 such section1 to the extent such       
amounts exceed #aej1jjj1jjj1jjj4  #c4   
,including special districts in the     
municipal liquidity facility ,the ,board
 of ,governors of the ,federal ,reserve 
,system shall include special districts1
 as defined in section #fja7;g77#d7 of  
the ,social ,security ,act 7#db         
,u4,s4,c4 #hja7;g77#d77 7as added by    
section #b7;c771 as eligible issuers in 

the ,municipal ,liquidity ,facility     
program authorized under section #ac7c7 
of the ,federal ,reserve ,act 7#ab      
,u4,s4,c4 #cdc7c774