,,ii #aagth ,,congress #ast ,session ,s4 #bbcc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #bd1 #bjba,mr4 ,blumenthal 7for himself1 ,mrs4 ,blackburn1 ,mr4 ,warner1 and ,mr4 ,kaine7 introduced the following bill2 which was read twice and referred to the ,committee on ,small ,business and ,entrepreneurship ,a ,,bill ,to establish a grant program for shuttered minor league baseball clubs1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,minor ,league ,baseball ,relief ,act4 #b4 ,definitions ,in this ,act3 7#a7 ,administrator ,the term ,administrator means the ,administrator of the ,small ,business ,administration4 7#b7 ,covered grants ,the term covered grant means a grant made under this ,act to an eligible entity4 7#c7 ,covered law ,the term covered law means-- 7,a7 the ,coronavirus ,preparedness and ,response ,supplemental ,appropriations ,act1 #bjbj 7,public ,law #aaf-abc72 7,b7 the ,families ,first ,coronavirus ,response ,act 7,public ,law #aaf-abg72 7,c7 the ,,cares ,act 7,public ,law #aaf-acf72 7,d7 the ,paycheck ,protection ,program and ,health ,care ,enhancement ,act 7,public ,law #aaf-aci2 #acd ,stat4 #fbj72 7,e7 division ,m or ,n of the ,consolidated ,appropriations ,act1 #bjba 7,public ,law #aaf-bfj72 or 7,f7 the ,american ,rescue ,plan ,act of #bjba 7,public ,law #aag-b74 7#d7 ,covered mortgage obligation2 covered rent obligation2 covered utility payment2 covered worker protection expenditure ,the terms covered mortgage obligation1 covered rent obligation1 covered utility payment1 and covered worker protection expenditure have the meanings given those terms in section #g;,a7a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcfm7a774 7#e7 ,eligible entity ,the term eligible entity means any ,minor ,league ,baseball ,club or ,independent ,professional ,baseball ,club that meets the following requirements3 7,a7 ,the ,minor ,league ,baseball ,club or ,independent ,professional ,baseball ,club was operating in the ordinary course of business on ,february #bi1 #bjbj4 7,b7 ,the gross revenues of the ,minor ,league ,baseball ,club or ,independent ,professional ,baseball ,club in calendar year #bjbj were not more than #be percent of the gross revenues of the ,minor ,league ,baseball ,club or ,independent ,professional ,baseball ,club in calendar year #bjai1 or1 if the gross revenues of the ,minor ,league ,baseball ,club or ,independent ,professional ,baseball ,club were negatively impacted by a natural disaster or weather disruption in #bjai1 not more than #be percent of the average annual gross revenues of the ,minor ,league ,baseball ,club or ,independent ,professional ,baseball ,club over the #c-year period from #bjaf through #bjah1 as determined by the ,administrator using the accrual method of accounting and excluding any amounts received any amounts received under the ,,cares ,act 7#ae ,u4,s4,c4 #ijja et seq471 an amendment to such ,act1 the ,consolidated ,appropriations ,act1 #bjba 7,public ,law #aaf-bfj71 or any subsequent ,,covid ,relief package4 7,c7 ,at the time the ,minor ,league ,baseball ,club or ,independent ,professional ,baseball ,club submits the certification required under section #c7;c71 the ,minor ,league ,baseball ,club or ,independent ,professional ,baseball ,club is open1 or intends to reopen1 for the primary purpose of conducting baseball games4 7,d7 ,the ,minor ,league ,baseball ,club or ,independent ,professional ,baseball ,club is not majority owned1 directly or indirectly1 by ,major ,league ,baseball1 a ,major ,league ,baseball ,club1 or one or more persons who have a greater than #aj percent ownership interest in a ,major ,league ,baseball ,club4 7#f7 ,independent professional baseball club ,the term ,independent ,professional ,baseball ,club means a professional baseball team1 including a professional baseball team that is a corporation1 limited liability company1 or a partnership or operated as a sole proprietorship1 that-- 7,a7 operates for profit or as a nonprofit organization2 7,b7 is located in the ,united ,states2 and 7,c7 as of ,february #bi1 #bjbj1 was a member of-- 7i7 the ,american ,association of ,professional ,baseball2 7ii7 the ,atlantic ,league of ,professional ,baseball2 7iii7 the ,canadian ,american ,association of ,professional ,baseball2 7iv7 the ,empire ,professional ,baseball ,league2 7v7 the ,frontier ,league2 7vi7 the ,pacific ,association of ,professional ,baseball ,clubs2 7vii7 the ,pecos ,league of ,professional ,baseball ,clubs2 7viii7 the ,united ,shore ,professional ,baseball ,league2 or 7ix7 the ,western ,league4 7#g7 ,minor league baseball club ,the term ,minor ,league ,baseball ,club means a professional baseball team1 including a professional baseball team that is a corporation1 limited liability company1 or a partnership or operated as a sole proprietorship1 that-- 7,a7 operates for profit or as a nonprofit organization2 7,b7 is located in the ,united ,states2 and 7,c7 7i7 as of ,february #bi1 #bjbj1 was a member of a league that was a member of the ,national ,association of ,professional ,baseball ,leagues1 ,inc42 or 7ii7 has been offered and is operating or has agreed to operate under-- 7,i7 a ,player ,development ,license granted by ,,mlb ,professional ,development ,leagues1 ,,llc2 or 7,,ii7 a license granted by ,appalachian ,league1 ,inc4 7#h7 ,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#cf774 #c4 ,grants for certain minor league baseball clubs 7a7 ,in general ,the ,administrator shall1 subject to the availability of appropriations1 make covered grants to eligible entities in accordance with this section4 7b7 ,authority ,the ,associate ,administrator for the ,office of ,disaster ,assistance of the ,small ,business ,administration shall coordinate and formulate policies relating to the administration of covered grants4 7c7 ,certification of need ,an eligible entity applying for a covered grant shall submit a good faith certification that the uncertainty of current economic conditions makes necessary the grant to support the ongoing operations of the eligible entity4 7d7 ,multiple business entities ,the ,administrator shall treat each eligible entity as an independent1 non-affiliated entity for the purposes of this section4 7e7 ,grant terms 7#a7 ,number of grants 7,a7 ,in general ,except as provided in subparagraph 7,b71 an eligible entity may receive only #a covered grant4 7,b7 ,supplemental grant ,the ,administrator may make a second covered grant to an eligible entity if1 as of ,june #cj1 #bjba1 the gross revenues of such eligible entity for calendar year #bjba as of such date are not more than #cj percent of the gross revenues of such eligible entity for the corresponding period of #bjai1 or1 if the gross revenues of the eligible entity were negatively impacted by a natural disaster or weather disruption in #bjai1 not more than #cj percent of the average gross revenues of the eligible entity during the first #f months of #bjaf1 #bjag1 and #bjah1 due to the ,,covid-#ai pandemic4 7#b7 ,amount 7,a7 ,in general ,except as provided in subparagraph 7,b71 a covered grant shall be in an amount equal to the lesser of-- 7i7 the amount equal to #de percent of the gross revenues of the eligible entity for #bjai1 or1 if the gross revenues of the eligible entity were negatively impacted by a natural disaster or weather disruption in #bjai1 equal to #de percent of the average annual gross revenues of the eligible entity over the #c-year period from #bjaf through #bjah1 which shall include the gross revenues of all subsidiaries and other related entities that are consolidated with the gross revenues of the eligible entity in a financial statement prepared in accordance with generally accepted accounting principles for such eligible entity for such year2 or 7ii7 #aj1jjj1jjj4 7,b7 ,supplement grant amount ,a covered grant made pursuant to paragraph 7#a77;,b7 shall be in an amount equal to #ej percent of the first covered grant received by the eligible entity4 7#c7 ,grant aggregate maximum ,the total amount of covered grants received by an eligible entity may not exceed #aj1jjj1jjj4 7#d7 ,use of funds 7,a7 ,timing 7i7 ,expenses incurred 7,i7 ,in general ,except as provided in subclause 7,,ii71 amounts received under a covered grant may only be used for expenses incurred during the period beginning on ,march #a1 #bjbj and ending on ,december #ca1 #bjba4 7,,ii7 ,extension for supplemental grants ,if an eligible entity receives a grant under paragraph 7#a77;,b71 amounts received under a covered grant may be used for costs incurred during the period beginning on ,march #a1 #bjbj and ending ,september #cj1 #bjbb4 7ii7 ,expenditure 7,i7 ,in general ,except as provided in subclause 7,,ii71 an eligible entity shall return to the ,administrator any amounts received under a covered grant that are not expended on or before the date that is #a year after the date of disbursement of the covered grant4 7,,ii7 ,extension for supplemental grants ,if an eligible entity receives a grant under paragraph 7#a77;,b71 the eligible entity shall return to the ,administrator any amounts received under any covered grant that are not expended on or before the date that is #ah months after the date of disbursement of the first covered grant received by the eligible entity4 7,b7 ,allowable expenses ,an eligible entity may use amounts received under a covered grant for-- 7i7 payroll costs2 7ii7 payments on any covered rent obligation or other obligation to a public entity from whom the primary venue of the eligible entity is leased or licensed2 7iii7 any covered utility payment2 7iv7 payments of interest or principal due on any covered mortgage obligation2 7v7 payments of interest or principal due on any indebtedness or debt instrument incurred in the ordinary course of business that is a liability of the eligible entity and was in place or incurred prior to ,february #ae1 #bjbj2 7vi7 covered worker protection expenditures2 7vii7 payments made to independent contractors1 as reported on ,form-#ajii ,,misc1 not to exceed a total of #ajj1jjj in annual compensation for any individual employee of an independent contractor2 and 7viii7 other ordinary and necessary business expenses1 including-- 7,i7 maintenance expenses2 7,,ii7 administrative costs1 including fees and licensing costs2 7,,iii7 ,state and local taxes and fees2 7,,iv7 operating leases in effect as of ,february #ae1 #bjbj2 7,v7 payments required for insurance on any insurance policy2 7,,vi7 settling existing debts with vendors2 and 7,,vii7 advertising1 production1 transportation1 and capital expenditures relating to the primary venue of the eligible entity or events held at such venue1 except that a grant under this section may not be used primarily for such expenditures4 7,c7 ,prohibited expenses ,an eligible entity may not use amounts received under a grant under this section-- 7i7 to purchase real estate2 7ii7 for payments of interest or principal for loans originated after ,february #ae1 #bjbj2 7iii7 to invest or re-lend funds2 7iv7 for contributions or expenditures to1 or on behalf of1 any political party1 party committee or candidate for elective office2 or 7v7 for any other use as may be reasonably prohibited by the ,administrator4 7f7 ,increased oversight ,the ,administrator shall increase oversight of eligible entities receiving covered grants1 which may include the following3 7#a7 ,documentation ,additional documentation requirements that are consistent with the eligibility and other requirements under this section1 including requiring an eligible entity that receives a grant under this section to retain records that document compliance with the requirements for grants under this section-- 7,a7 with respect to employment records1 for the #d-year period following receipt of the grant2 and 7,b7 with respect to other records1 for the #c-year period following receipt of the grant4 7#b7 ,reviews of use ,reviews of the use of the grant proceeds by an eligible entity to ensure the compliance with requirements established under this section and by the ,administrator1 including that the ,administrator may-- 7,a7 review and audit grants under this section2 and 7,b7 in the case of fraud of other material noncompliance with respect to a grant under this section-- 7i7 require repayment of misspent funds2 or 7ii7 pursue legal action to collect funds4 7g7 ,oversight and audit plan 7#a7 ,in general ,not later than #de days after the date of enactment of this ,act1 the ,administrator shall submit to the ,committee on ,small ,business and ,entrepreneurship of the ,senate and the ,committee on ,small ,business of the ,house of ,representatives an audit plan that details-- 7,a7 the policies and procedures of the ,administrator for conducting oversight and audits of covered grants2 and 7,b7 the metrics that the ,administrator shall use to determine which covered grants will be audited pursuant to subsection 7f74 7#b7 ,report ,not later than #fj days after the date of enactment of this ,act1 and each month thereafter until the date that is #a year after the date on which all amounts appropriated to make covered grants have been expended1 the ,administrator 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 on the oversight and audit activities of the ,administrator under this subsection1 which shall include-- 7,a7 the total number of covered grants approved and disbursed2 7,b7 the total amount of covered grants received by each eligible entity2 7,c7 the number of active investigations and audits of covered grants2 7,d7 the number of completed reviews and audits of covered grants1 including a description of any findings of fraud or other material non-compliance2 and 7,e7 any substantial changes made to the oversight and audit plan submitted under paragraph 7#a74 7h7 ,tax treatment of covered loans 7#a7 ,in general ,for the purposes of the ,internal ,revenue ,code of #aihf-- 7,a7 no covered grant shall be included in the gross income of the eligible entity that receives such covered grant2 7,b7 no deduction shall be denied1 no tax attribute shall be reduced1 and no basis increase shall be denied1 by reason of the exclusion from gross income provided by subparagraph 7,a72 and 7,c7 in the case of a partnership or ,s corporation that receives such a covered grant-- 7i7 any amount excluded from income by reason of subparagraph 7,a7 shall be treated as tax exempt income for purposes of sections #gje and #acff of the ,internal ,revenue ,code of #aihf2 and 7ii7 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall prescribe rules for determining a partner's distributive share of any amount described in clause 7i7 for purposes of section #gje of the ,internal ,revenue ,code of #aihf4 7#b7 ,applicability ,paragraph 7#a7 shall apply to taxable years ending after the date of enactment of this ,act4 7i7 ,funding ,notwithstanding any provision of covered law1 from any funds appropriated under such a law that have not been obligated as of the date of enactment of this ,act and are no longer being used to carry out the activities under such a law1 the remaining funds or #eej1jjj1jjj1 whichever is greater1 but in any case not more than #eej1jjj1jjj1 shall be allocated to the ,administrator to carry out this section1 of which not more than #ej1jjj1jjj shall be allocated to ,independent ,professional ,baseball ,clubs4