(a) As used in this section, (1) “COVID-19” means the respiratory disease designated by the World Health Organization on February 11, 2020, as coronavirus 2019, and any related mutation thereof recognized by said organization as a communicable respiratory disease, (2) “loan forgiveness” means forgiveness of any paycheck protection program loan, in whole or in part, provided under the CARES Act, P.L. 116-136, or the Paycheck Program Flexibility Act of 2020, P.L. 116-142, and (3) “paycheck protection program loan” means a loan offered to a business or nonprofit organization during the COVID-19 pandemic under the CARES Act.

(b) No state agency contracting with a nonprofit provider of human services may attempt to recover or otherwise offset funds obtained or retained by such nonprofit provider through loan forgiveness. For purposes of this subsection, “attempt to recover or otherwise offset” means (1) reductions in contracted amounts for the same or similar services from the contract period before such loan forgiveness to the next contract period, or (2) demands for reimbursement of state funds from such providers in the amount of any loan forgiveness.