0CCAB2EBAC936D0C8725875A0053EA2A Hearing Summary CLICS/CLICS2021A/commsumm.nsf PUBLICBILL SUMMARY For ALLOWABLE USES OF AMERICAN RESCUE PLAN ACT OF 2021 FUNDSINTERIM COMMITTEE TASK FORCE ON ECONOMIC RECOVERY AND RELIEF CASH FUNDDate Sep 24, 2021 Location SCR 352 Allowable Uses of American Rescue Plan Act of 2021 Funds - Committee Discussion Only Attachment Tag File Name Attachment A http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/581781C5C876...$File/Attachment A.pdf?OpenElement Attachment A.pdf Attachment B http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/AE07DC684D80...$File/Attachment B.pdf?OpenElement Attachment B.pdf Attachment C http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/0E2D2D271B74...$File/Attachment C.pdf?OpenElement Attachment C.pdf 09:16:39 AM Ed DeCecco, Office of Legislative Legal Services, began the presentation regarding allowable uses of American Rescue Plan Act of 2021 (ARPA) funding (Attachments A through C). He reviewed the amount of money allocated to the state and the allowable uses of the funds. The funds must be spent by December 31, 2024, and the state must repay any amount that is not used for an authorized purpose. He further reviewed the allowable uses of the Coronavirus State Fiscal Recovery Fund, including 1) to respond to the public health emergency with respect to COVID-19, or its negative economic impacts; 2) to respond to workers performing essential work during the COVID-19 public health emergency; 3) For the provision of government services to the extent of the reduction in revenue; and 4) to make necessary investments in water, sewer, or broadband infrastructure. He discussed prohibited uses of the funds, including directly depositing the money in a pension fund and to directly or indirectly offset a net tax revenue loss. He discussed the federal rules implementing the law. 09:30:44 AM Mr. DeCecco continued the discussion of allowable uses of the ARPA funding and discussed legislation enacted in the 2021 session allocating the money. He noted that most of the money first flows to the American Rescue Plan Act of 2021 Cash Fund. From this fund, money flows to five additional cash funds. Mr. DeCecco described the provisions of law that apply to the American Rescue Plan Act of 2021 Cash Fund. He continued by discussing the Behavioral and Mental Health Cash Fund; Workers, Employers, and Workforce Centers Cash Fund; Affordable Housing and Home Ownership Cash Fund; Revenue Restoration Cash Fund; and Economic Recovery and Relief Cash Fund (ERRCF). He further highlighted the ERRCF and discussed the allowable uses for this funding, including assistance to small businesses; assistance to individuals and households; assistance to nonprofit organizations; public health expenditures for COVID-19 prevention and response; administrative costs associated with COVID-19 public health emergency assistance programs; aid to impacted industries; assistance to unemployed workers; contributions to the unemployment compensation fund; relief efforts for unmet needs, especially for communities disproportionately impacted by the COVID-19 pandemic; and to make necessary investments in water, sewer, or broadband infrastructure. 09:52:51 AM Mr. DeCecco responded to questions from the task force and subpanel regarding the use of the ARPA funds, and local government allocations of ARPA funds. He further answered questions about determining whether certain uses would meet the requirements of federal law. 09:58:20 AM He continued to respond to questions from the task force, providing responses to questions on capital improvements, public/private partnerships, and updated guidance from the Treasury Department on ARPA funds. He continued by responding to questions about whether ARPA moneys could be used to match federal funds, the use of funding by local governments, and special districts.
