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4382 Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations
<br /> First,recipients should identify an number of employees of the recipient's publications,research from academic
<br /> industry to be assessed.In identifying identified industry and the national sources, and other quantitative sources
<br /> this industry,the final rule provides Leisure&Hospitality sector in the three for this determination.
<br /> recipients the flexibility to define its months before the pandemic's most If quantitative data is unavailable,the
<br /> substantive or geographic scope.238 severe impacts began(a straight three- recipient can rely on qualitative data to
<br /> Recipients may identify a broad sector month average of seasonally-adjusted show that the industry is experiencing
<br /> that encompasses a number of sub- employment data from December 2019, comparable or worse economic impacts
<br /> industries, or they may identify a January 2020,and February 2020)with as the national tourism,travel,and
<br /> specific sub-industry to be assessed. For the latest data as of the final rule release hospitality industries,and the impacts
<br /> example,a recipient may identify (a straight three-month average of were generally due to the COVID-19
<br /> "personal care services"as an industry, seasonally-adjusted employment data public health emergency.Recipients
<br /> or they may identify a more specific from September 2021, October 2021, may rely on sources like community
<br /> category within the"personal care and November 2021).239 The national interviews, surveys,and research from
<br /> services"industry(e.g.,barber shops) as Leisure&Hospitality sector largely relevant state and local government
<br /> an industry. In defining the industry, represents the national travel,tourism, agencies.
<br /> Treasury encourages recipients to define and hospitality industries enumerated As the public health emergency and
<br /> narrow and discrete industries eligible in the statute. According to the Bureau economic recovery evolves,recipients
<br /> for aid. Recipients are not required to of Labor Statistics, employment has should assess how industry impacts
<br /> follow,but may consider following, fallen by approximately 8 percent for
<br /> y g shift over time.Impacted industries may
<br /> industry classifications under the North the national Leisure&Hospitality sector recover in a short period of time and no
<br /> American Industry Classification when comparing the most recent three- longer face a negative economic impact;
<br /> System(NAICS). Treasury notes that the month period available as of the date of in those circumstances,the recipient
<br /> larger and more diverse the sector,the adoption of the final rule to the three- should ensure that the extent and length
<br /> more difficult it may be to demonstrate month period immediately before the of aid is reasonably proportional to the
<br /> that the larger and less specific sector is public health emergency.Therefore,if negative economic impact that is
<br /> negatively impacted in the same way the identified industry has suffered an experienced,as detailed further below
<br /> given the scale and diversity of employment loss of at least 8 percent, and in section General Provisions:
<br /> businesses within it. the final rule presumes they industry to Structure and Standards. Recipients
<br /> State or territory recipients may also be an impacted industry. may add to their list of impacted
<br /> define a constituent industry with For parity and simplicity, smaller industries by showing that the negative
<br /> greatergeographic recision than state recipients without employment data
<br /> g p that measure industries in theirs specific economic impacts to the industry at the
<br /> n
<br /> or territory-wide. For example,a state p time of the designation are comparable
<br /> may identify a particular industry in a jurisdiction may use data available for a to the negative economic impacts to the
<br /> certain region of the state that was broader unit of government for this national tourism,travel,and hospitality
<br /> ve ne atil acted b thepandemic, calculation(e.g.,a county may use data
<br /> negatively impacted by p from the state in which it is located; a sectors as of the date of the final rule
<br /> even if the same industry in the rest of adoption,as detailed herein.
<br /> the state did not see a meaningful city may use data for the county,if
<br /> negative economic impact from the available, or state in which it is located) Eligible Aid
<br /> pandemic. State recipients oversee large solely for purposes of determining
<br /> P P ge whether a particular industry is an Public Comment:Commenters asked
<br /> and diverse industries,sometimes with for further clarification as to the
<br /> differences in economic activityimpacted industry.
<br /> 2.If simplified test is not met.If an definition of eligible aid to an impacted
<br /> between geographic regions.Allowing industry does not satisfy the test above industry,with many requesting that a
<br /> greater geographic precision allows or data are unavailable,the recipient broad range of aid be eligible.Examples
<br /> recipients to target aid to those that may still designate the industry as of aid that recipients asked to be
<br /> need it most, ensuring that state impacted by demonstrating the considered eligible include aid to
<br /> averages do not conceal hard-hit areas following: businesses to cover COVID-19
<br /> in their state. a. The recipient can show that the mitigation costs and planned
<br /> Second,to determine whether the totality of relevant major economic renovations or improvements to
<br /> industry is "impacted,"recipients indicators demonstrate that the industry tourism,travel,and hospitality
<br /> should compare the negative economic is experiencing comparable or worse facilities, as well as marketing and in-
<br /> impacts of the public health emergency economic impacts as the national kind incentives to attract visitors.
<br /> on the identified industry to the impacts tourism,travel,and hospitality Commenters also asked about the
<br /> observed on the travel,tourism,and industries at the time of the publication eligibility of aid to broadly cover losses
<br /> hospitality industries. of the final rule, and that the impacts incurred by facilities such as convention
<br /> 1. Simplified test.An industry is were generally due to the COVID-19 centers and hotels due to the
<br /> presumed to be impacted if the industry public health emergency.Example pandemic's economic impact.
<br /> experienced employment loss of at least economic indicators include gross Commenters also asked for further
<br /> 8 percent. output,GDP,net profits, employment clarification about the requirements
<br /> Specifically, a recipient should levels,and projected time to restore related to private-sector reporting.
<br /> compare the percent change in the employment back to pre-pandemic Further, some commenters asked for
<br /> levels.Recipients may rely on available clarification about eligible aid to
<br /> L3S Once an industry is designated as impacted, economic data,government research impacted industries owned and
<br /> aid should be generally broadly available to g p
<br /> businesses in the industry that qualify.Recipients operated by Tribal governments,
<br /> should document how they defined the scope of 239 National Leisure&Hospitality supersector including for Tribal construction
<br /> their industry and how they determined that the employment data can be found on the U.S.Bureau projects that have been delayed due to
<br /> industry was impacted.For states and territories, of Labor Statistics website:U.S.Bureau of Labor
<br /> this includes documenting their justification for Statistics,Leisure and Hospitality,https:// the pandemic's economic impacts, and
<br /> defining a constituent industry with greater www.b1s.gov1iag1tgs1iag70.htm(last visited for deference to Tribal determinations of
<br /> geographic precision than state or territory-wide. December 7,2021). negative economic impacts.
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