Amendment #422 to H4879

Distressed Restaurants in Disproportionally Impacted Neighborhoods

Ms. Miranda of Boston move to amend the bill in section 110 by striking out subsections (b) through (e) and inserting in place thereof the following subsections:             

“(b) There shall be a Distressed Restaurant Trust Fund. The secretary of the executive office of housing and economic development shall be trustee of the fund and shall expend money in the fund to address the financial impacts of the COVID-19 emergency on distressed restaurants in disproportionately impacted neighborhoods. For the purposes of this section the term “disproportionately impacted neighborhoods” shall mean a neighborhood in which the annual median household income is equal to or less than 65 per cent of the statewide median or in which minorities comprise 25 per cent or more of the population or in which 25 per cent or more of households lack English language proficiency. Where a neighborhood does not meet any of those criteria, but a geographic portion of that neighborhood meets at least 1 of those criteria, the secretary may designate that geographic portion as a disproportionately impacted neighborhood if any of the following are true: (i) annual median household income is equal to or less than 65 per cent of the statewide median; (ii) 25 per cent or more of the residents identify as a race other than white; or (iii) 25 per cent or more of households have no household member over the age of 14 who speaks English only or proficiently. There shall be credited to the fund: (i) revenue transferred pursuant to section 14 of chapter 23N; (ii) any interest earned on money in the fund; and (iii) any gifts, grants or private contributions. Money deposited in the fund that is unexpended at the end of the fiscal year shall not revert to the General Fund and shall be available for expenditure in the subsequent fiscal year.

(c) Money in the fund shall be expended for a competitive one-time grant program to assist distressed restaurants in disproportionally impacted neighborhoods financially impacted by the COVID-19 emergency; said assistance shall include: (i) rental assistance for restaurants in small business premises units; and (ii) mortgage assistance for restaurants located on a property that is owner occupied; provided, that the cost of rent or mortgage payment constitutes 10 per cent or more of a restaurant’s revenue, based on the restaurant’s 2019 total revenue and rent or mortgage payments; provided, further, the maximum amount each restaurant is eligible for rent or mortgage expenses under the fund is 7 per cent of the restaurant’s 2019 total revenue. The secretary shall accept a self-attestation as proof of such expenses. Money from the fund shall also be expended to provide other support to restaurants, including: (i) insurance costs; (ii) payroll expenses; (iii) past due payment orders for supplies, goods or services used by the restaurant; and (iv) procuring personal protective equipment. No recipient shall receive more than $50,000 for assistance under said one-time grant program for distressed restaurants in disproportionally impacted neighborhoods; provided, however  that where a distressed restaurant does not meet the disproportionally impacted neighborhood criteria provide for in subsection a distressed restaurant recipient shall receive no more than $15,000 for assistance under said one-time grant program.

(d) The executive office of housing and economic development shall determine criteria to evaluate financial needs of distressed restaurants in disproportionally impacted neighborhoods; provided, that the criteria shall prioritize small business owners financially impacted by the COVID-19 emergency; provided further, that the criteria shall promote the continued operation of restaurants in diverse locations throughout the commonwealth.

(e) Not later than October 1, 2021 and October 1, 2022, the secretary of the executive office of housing and economic development shall provide a report of the funds used to support distressed restaurants in disproportionally impacted neighborhoods, including a breakdown of expenditures. The report shall be provided the clerks of the house of representatives and the senate, the house and senate committees on ways and means, the joint committee on economic development and emerging technologies and the joint committee on tourism, arts and cultural development.

 


Additional co-sponsor(s) added to Amendment #422 to H4879

Distressed Restaurants in Disproportionally Impacted Neighborhoods

Representative:

Michelle M. DuBois

Elizabeth A. Malia

Nika C. Elugardo

Aaron Vega

Steven Ultrino

David Henry Argosky LeBoeuf

Mary S. Keefe

Alice Hanlon Peisch

Kay Khan

Carlos González

Mike Connolly