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Home Source documents H.R. 7806 — Save Our Stages Act (116th Congress, introduced July 27, 2020)

H.R. 7806 — Save Our Stages Act (116th Congress, introduced July 27, 2020)

Date
2020-07-27

Summary

H.R. 7806, the Save Our Stages Act, a bill of the 116th Congress introduced in the House of Representatives on July 27, 2020 by Mr. Welch for himself and Mr. Williams and referred to the Committee on Small Business. It would authorize the Administrator of the Small Business Administration to make grants to eligible live venue operators, promoters, producers and talent representatives that were fully operational on February 29, 2020, subject to criteria on venue characteristics and ownership. Initial grants would be the lesser of 45 percent of 2019 gross revenue, a six-month revenue measure for newer entities, or $12,000,000, and supplemental grants would equal 50 percent of the initial grant. The bill lists allowable and prohibited uses of funds, sets spending deadlines, and authorizes $10,000,000,000 in appropriations.

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Full text

                                                                                                                                                                          I




                                                                       116TH CONGRESS
                                                                          2D SESSION
                                                                                                            H. R. 7806
                                                                             To establish a grant program for small live venue operators and talent
                                                                                                        representatives.




                                                                                     IN THE HOUSE OF REPRESENTATIVES
                                                                                                     JULY 27, 2020
                                                                          Mr. WELCH (for himself and Mr. WILLIAMS) introduced the following bill;
                                                                                 which was referred to the Committee on Small Business




                                                                                                                 A BILL
                                                                         To establish a grant program for small live venue operators
                                                                                          and talent representatives.

                                                                         1              Be it enacted by the Senate and House of Representa-
                                                                         2 tives of the United States of America in Congress assembled,
                                                                         3     SECTION 1. SHORT TITLE.

                                                                         4              This Act may be cited as the ‘‘Save our Stages Act’’
                                                                         5 or the ‘‘SOS Act’’.
                                                                         6     SEC. 2. GRANTS FOR INDEPENDENT LIVE VENUE OPERA-

                                                                         7                             TORS.

                                                                         8              (a) DEFINITIONS.—In this section:




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                                                                         1                       (1) ADMINISTRATOR.—The term ‘‘Adminis-
                                                                         2              trator’’ means the Administrator of the Small Busi-
                                                                         3              ness Administration.
                                                                         4                       (2) ELIGIBLE                     OPERATOR,              PROMOTER,        PRO-

                                                                         5              DUCER, OR TALENT REPRESENTATIVE.—

                                                                         6                                 (A) IN GENERAL.—The term ‘‘eligible op-
                                                                         7                       erator, promoter, producer, or talent represent-
                                                                         8                       ative’’ means a live venue operator or producer
                                                                         9                       or promoter or a talent representative that
                                                                       10                        meets the following requirements:
                                                                       11                                         (i) The live venue operator or pro-
                                                                       12                                  ducer or promoter or the talent representa-
                                                                       13                                  tive was fully operational as a live venue
                                                                       14                                  operator or producer or promoter or talent
                                                                       15                                  representative on February 29, 2020.
                                                                       16                                         (ii) As of the date of the grant under
                                                                       17                                  this section—
                                                                       18                                                  (I) the live venue operator or
                                                                       19                                         producer or promoter is organizing,
                                                                       20                                         promoting, producing, managing, or
                                                                       21                                         hosting future events described in
                                                                       22                                         paragraph (4)(A)(i); or
                                                                       23                                                  (II) the talent representative is
                                                                       24                                         representing or managing artists and



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                                                                       25                                         entertainers.


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                                                                         1                                        (iii) The venues at which the live
                                                                         2                                 venue operator or producer or promoter
                                                                         3                                 promotes, produces, manages, or hosts
                                                                         4                                 events described in paragraph (4)(A)(i) or
                                                                         5                                 the artists and entertainers represented or
                                                                         6                                 managed by the talent representative per-
                                                                         7                                 form have the following characteristics:
                                                                         8                                                 (I) A defined performance and
                                                                         9                                        audience space.
                                                                       10                                                  (II) A mixing desk, public ad-
                                                                       11                                         dress system, and lighting rig.
                                                                       12                                                  (III) Employs not less than 2 of
                                                                       13                                         the following:
                                                                       14                                                             (aa) A sound engineer.
                                                                       15                                                             (bb) A booker.
                                                                       16                                                             (cc) A promoter.
                                                                       17                                                             (dd) A stage manager.
                                                                       18                                                             (ee) Security personnel.
                                                                       19                                                             (ff) A box office manager.
                                                                       20                                                  (IV) There is a paid ticket or
                                                                       21                                         cover charge to attend most perform-
                                                                       22                                         ances and artists are paid fairly and
                                                                       23                                         do not play for free or solely for tips,
                                                                       24                                         except for legitimate fundraisers or



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                                                                       25                                         similar charitable events.


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                                                                         1                                                 (V) For a venue owned or oper-
                                                                         2                                         ated by a nonprofit entity that pro-
                                                                         3                                         duces free events, the events are pro-
                                                                         4                                         duced and managed by paid employ-
                                                                         5                                         ees, not by volunteers.
                                                                         6                                                 (VI) Performances are marketed
                                                                         7                                         through listings in printed or elec-
                                                                         8                                         tronic publications, on websites, by
                                                                         9                                         mass email, or on social media.
                                                                       10                                          (iv) The live venue operator or pro-
                                                                       11                                  ducer or promoter or the talent representa-
                                                                       12                                  tive does not have, or is not majority
                                                                       13                                  owned or controlled by an entity with,
                                                                       14                                  more than 1 of the following characteris-
                                                                       15                                  tics:
                                                                       16                                                  (I) Being an issuer, the securities
                                                                       17                                          of which are listed on a national secu-
                                                                       18                                          rities exchange.
                                                                       19                                                  (II) Owning or operating venues
                                                                       20                                          or talent agencies or talent manage-
                                                                       21                                          ment companies with offices in more
                                                                       22                                          than 1 country.
                                                                       23                                                  (III) Owning or operating venues
                                                                       24                                          in more than 10 States.



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                                                                         1                                                 (IV) Employing more than 500
                                                                         2                                        employees, determined on a full-time
                                                                         3                                        equivalent basis in accordance with
                                                                         4                                        subparagraph (B).
                                                                         5                                                 (V) Receiving more than 10 per-
                                                                         6                                        cent of gross revenue from Federal
                                                                         7                                        funding.
                                                                         8                                 (B) CALCULATION OF FULL-TIME EMPLOY-
                                                                         9                       EES.—For purposes of determining the number

                                                                       10                        of full-time equivalent employees under sub-
                                                                       11                        paragraph (A)(iv)(IV)—
                                                                       12                                         (i) any employee working not fewer
                                                                       13                                  than 30 hours per week shall be considered
                                                                       14                                  a full-time employee; and
                                                                       15                                         (ii) any employee working not fewer
                                                                       16                                  than 10 hours and fewer than 30 hours
                                                                       17                                  per week shall be counted as one-half of a
                                                                       18                                  full-time employee.
                                                                       19                        (3) EXCHANGE; ISSUER; SECURITY.—The terms
                                                                       20               ‘‘exchange’’, ‘‘issuer’’, and ‘‘security’’ have the
                                                                       21               meanings given such terms in section 3(a) of the Se-
                                                                       22               curities Exchange Act of 1934 (15 U.S.C. 78c(a)).
                                                                       23                        (4) LIVE VENUE OPERATOR OR PRODUCER OR
                                                                       24               PROMOTER.—The term ‘‘live venue operator or pro-




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                                                                       25               ducer or promoter’’—


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                                                                         1                                 (A) means an individual or entity that—
                                                                         2                                        (i) as not less than 70 percent of the
                                                                         3                                 operations of the person, organizes, pro-
                                                                         4                                 motes, sells tickets produces, manages, or
                                                                         5                                 hosts live concerts, comedy shows, theat-
                                                                         6                                 rical productions, or other events by per-
                                                                         7                                 forming artists and applies cover charge
                                                                         8                                 through ticketing or front door entrance
                                                                         9                                 fee; or
                                                                       10                                         (ii) makes tickets to events described
                                                                       11                                  in clause (i) available for purchase by the
                                                                       12                                  public an average of not less than 60 days
                                                                       13                                  before the date of the event and pays per-
                                                                       14                                  formers in an event described in clause (i)
                                                                       15                                  in an amount that is based on a percent-
                                                                       16                                  age of sales, guarantee (in writing or
                                                                       17                                  standard contract), or another mutually
                                                                       18                                  beneficial formal agreement; and
                                                                       19                                  (B) includes an individual or entity de-
                                                                       20                        scribed in subparagraph (A) that—
                                                                       21                                         (i) operates for profit or as a non-
                                                                       22                                  profit;
                                                                       23                                         (ii) is government-owned; or




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                                                                         1                                        (iii) is a corporation, limited liability
                                                                         2                                 company, or partnership or operated as a
                                                                         3                                 sole proprietorship.
                                                                         4                       (5) NATIONAL                     SECURITIES EXCHANGE.—The

                                                                         5              term ‘‘national securities exchange’’ means an ex-
                                                                         6              change registered as a national securities exchange
                                                                         7              under section 6 of the Securities Exchange Act of
                                                                         8              1934 (15 U.S.C. 78f).
                                                                         9                       (6) STATE.—The term ‘‘State’’ means—
                                                                       10                                  (A) a State;
                                                                       11                                  (B) the District of Columbia;
                                                                       12                                  (C) the Commonwealth of Puerto Rico;
                                                                       13                        and
                                                                       14                                  (D) any other territory or possession of the
                                                                       15                        United States.
                                                                       16                        (7) TALENT REPRESENTATIVE.—The term ‘‘tal-
                                                                       17               ent representative’’—
                                                                       18                                  (A) means an agent or manager that—
                                                                       19                                         (i) as not less than 70 percent of the
                                                                       20                                  operations of the agent or manager, is en-
                                                                       21                                  gaged in representing or managing artists
                                                                       22                                  and entertainers;
                                                                       23                                         (ii) books musicians, comedians, ac-
                                                                       24                                  tors, or similar performing artists pri-



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                                                                         1                                 marily in independent venues or at fes-
                                                                         2                                 tivals; and
                                                                         3                                        (iii) represents performers described
                                                                         4                                 in clause (ii) that are paid in an amount
                                                                         5                                 that is based on the number of tickets sold,
                                                                         6                                 or a similar basis; and
                                                                         7                                 (B) includes an agent or manager de-
                                                                         8                       scribed in subparagraph (A) that—
                                                                         9                                        (i) operates for profit or as a non-
                                                                       10                                  profit;
                                                                       11                                         (ii) is government-owned; or
                                                                       12                                         (iii) is a corporation, limited liability
                                                                       13                                  company, or partnership or operated as a
                                                                       14                                  sole proprietorship.
                                                                       15               (b) AUTHORITY.—
                                                                       16                        (1) INITIAL GRANTS.—The Administrator may
                                                                       17               make initial grants to eligible operators, promoters,
                                                                       18               and talent representatives in accordance with this
                                                                       19               section.
                                                                       20                        (2) SUPPLEMENTAL                             GRANTS.—The                 Adminis-
                                                                       21               trator may make a supplemental grant in accordance
                                                                       22               with this section to an eligible operator, promoter,
                                                                       23               producer, or talent representative that receives a
                                                                       24               grant under paragraph (1) if, as of December 1,



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                                                                       25               2020, the revenues of the eligible operator, pro-


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                                                                         1              moter, producer, or talent representative for the
                                                                         2              most recent calendar quarter are not more than 20
                                                                         3              percent of the revenues of the eligible operator, pro-
                                                                         4              moter, producer, or talent representative for the cor-
                                                                         5              responding calendar quarter during 2019 due to the
                                                                         6              COVID–19 pandemic.
                                                                         7              (c) AMOUNT.—
                                                                         8                       (1) INITIAL                GRANTS.—A                  grant under sub-
                                                                         9              section (b)(1) shall be in the amount equal to the
                                                                       10               lesser of—
                                                                       11                                  (A) the amount equal to 45 percent of the
                                                                       12                        gross revenue of the eligible operator, promoter,
                                                                       13                        producer, or talent representative during 2019;
                                                                       14                                  (B) for an eligible operator, promoter, pro-
                                                                       15                        ducer, or talent representative that began oper-
                                                                       16                        ations after January 1, 2019, the amount equal
                                                                       17                        to the product obtained by multiplying—
                                                                       18                                         (i) the average monthly gross revenue
                                                                       19                                  for each full month during which the entity
                                                                       20                                  was in operation during 2019; by
                                                                       21                                         (ii) 6; or
                                                                       22                                  (C) $12,000,000.
                                                                       23                        (2) SUPPLEMENTAL GRANTS.—A grant under
                                                                       24               subsection (b)(2) shall be in the amount equal to 50



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                                                                       25               percent of the grant received by the eligible operator,


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                                                                         1              promoter, producer, or talent representative under
                                                                         2              subsection (b)(1).
                                                                         3              (d) USE OF FUNDS.—
                                                                         4                       (1) TIMING.—
                                                                         5                                 (A) EXPENSES INCURRED.—
                                                                         6                                        (i) IN GENERAL.—Except as provided
                                                                         7                                 in clause (ii), amounts received under a
                                                                         8                                 grant under this section may be used for
                                                                         9                                 costs incurred during the period beginning
                                                                       10                                  on March 1, 2020, and ending on Decem-
                                                                       11                                  ber 31, 2020.
                                                                       12                                         (ii) EXTENSION FOR SUPPLEMENTAL
                                                                       13                                  GRANTS.—If                an eligible operator, pro-
                                                                       14                                  moter, producer, or talent representative
                                                                       15                                  receives a grant under subsection (b)(2),
                                                                       16                                  amounts received under either grant under
                                                                       17                                  this section may be used for costs incurred
                                                                       18                                  during the period beginning on March 1,
                                                                       19                                  2020, and ending on June 30, 2021.
                                                                       20                                  (B) EXPENDITURE.—
                                                                       21                                         (i) IN GENERAL.—Except as provided
                                                                       22                                  in clause (ii), an eligible operator, pro-
                                                                       23                                  moter, producer, or talent representative
                                                                       24                                  shall return to the Administrator any



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                                                                       25                                  amounts received under a grant under this


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                                                                         1                                 section that are not expended on or before
                                                                         2                                 the date that is 1 year after the date of
                                                                         3                                 disbursement of the grant.
                                                                         4                                        (ii) EXTENSION FOR SUPPLEMENTAL
                                                                         5                                 GRANTS.—If                an eligible operator, pro-
                                                                         6                                 moter, producer, or talent representative
                                                                         7                                 receives a grant under subsection (b)(2),
                                                                         8                                 the eligible operator, promoter, producer,
                                                                         9                                 or talent representative shall return to the
                                                                       10                                  Administrator any amounts received under
                                                                       11                                  either grant under this section that are not
                                                                       12                                  expended on or before the date that is 18
                                                                       13                                  months after the date of disbursement to
                                                                       14                                  the eligible operator, promoter, producer,
                                                                       15                                  or talent representative of the grant under
                                                                       16                                  subsection (b)(1).
                                                                       17                        (2) ALLOWABLE EXPENSES.—An eligible oper-
                                                                       18               ator, promoter, producer, or talent representative
                                                                       19               may use amounts received under a grant under this
                                                                       20               section for—
                                                                       21                                  (A) payroll costs for employees and fur-
                                                                       22                        loughed employees, including—
                                                                       23                                         (i) costs for continuation coverage
                                                                       24                                  provided pursuant to part 6 of subtitle B



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                                                                       25                                  of title I of the Employee Retirement In-


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                                                                                                                              12
                                                                         1                                 come Security Act of 1974 (other than
                                                                         2                                 under section 609), title XXII of the Pub-
                                                                         3                                 lic Health Service Act, section 4980B of
                                                                         4                                 the Internal Revenue Code of 1986 (other
                                                                         5                                 than subsection (f)(1) of such section inso-
                                                                         6                                 far as it relates to pediatric vaccines), or
                                                                         7                                 section 8905a of title 5, United States
                                                                         8                                 Code, or under a State program that pro-
                                                                         9                                 vides comparable continuation coverage,
                                                                       10                                  other than coverage under a health flexible
                                                                       11                                  spending arrangement under a cafeteria
                                                                       12                                  plan within the meaning of section 125 of
                                                                       13                                  the Internal Revenue Code of 1986; or
                                                                       14                                         (ii) any other non-cash benefit;
                                                                       15                                  (B) rent;
                                                                       16                                  (C) utilities;
                                                                       17                                  (D) mortgage interest payments on exist-
                                                                       18                        ing mortgages as of February 15, 2020;
                                                                       19                                  (E) scheduled interest payments on other
                                                                       20                        scheduled debt as of February 15, 2020;
                                                                       21                                  (F) costs related to personal protective
                                                                       22                        equipment;
                                                                       23                                  (G) payments of principal on outstanding
                                                                       24                        loans;



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                                                                         1                                 (H) payments made to independent con-
                                                                         2                       tractors, as reported on Form–1099 MISC; and
                                                                         3                                 (I) other ordinary and necessary business
                                                                         4                       expenses, including—
                                                                         5                                        (i) settling existing debts owed to ven-
                                                                         6                                 dors;
                                                                         7                                        (ii) maintenance expenses;
                                                                         8                                        (iii) administrative costs;
                                                                         9                                        (iv) taxes;
                                                                       10                                         (v) operating leases;
                                                                       11                                         (vi) insurance; and
                                                                       12                                         (vii) any other capital expenditure or
                                                                       13                                  expense required under any State, local, or
                                                                       14                                  Federal law or guideline related to social
                                                                       15                                  distancing.
                                                                       16                        (3) PROHIBITED EXPENSES.—An eligible oper-
                                                                       17               ator, promoter, producer, or talent representative
                                                                       18               may not use amounts received under a grant under
                                                                       19               this section—
                                                                       20                                  (A) to purchase real estate;
                                                                       21                                  (B) for payments of interest or principal
                                                                       22                        on loans originated after February 15, 2020;
                                                                       23                                  (C) to invest or re-lend funds;




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                                                                         1                                 (D) for contributions or expenditures to, or
                                                                         2                       on behalf of, any political party, party com-
                                                                         3                       mittee, or candidate for elective office; or
                                                                         4                                 (E) for any other use as may be prohibited
                                                                         5                       by the Administrator.
                                                                         6              (e) AUTHORIZATION OF APPROPRIATIONS.—There is
                                                                         7 authorized to be appropriated $10,000,000,000 to carry
                                                                         8 out this section.
                                                                                                                                  Æ




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