0CCAB2EBAC936D0C8725875A0053EA2A Hearing Summary

PUBLIC
BILL SUMMARY For ALLOWABLE USES OF AMERICAN RESCUE PLAN ACT OF 2021 FUNDS

INTERIM COMMITTEE TASK FORCE ON ECONOMIC RECOVERY AND RELIEF CASH FUND
Date 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

Attachment A.pdf

Attachment B

Attachment B.pdf

Attachment C

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.

Allowable Uses of American Rescue Plan Act of 2021 Funds - Committee Discussion Only

Colorado General Assembly