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S. 3325: To Make Companies That Support Venues and Events Eligible for Grants Under the Shuttered Venue Operators Grant Program

Summary

Senate bill 3325, the MUSIC Act, was introduced on December 7, 2021, by Blackburn, Cortez Masto, Hagerty, Klobuchar and Warnock and referred to the Committee on Small Business and Entrepreneurship. It would add service and support companies to the shuttered venue operators grant program in section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, excluding entities that employ more than 250 full-time employees. Two 14-day priority periods apply by revenue loss of 10 percent and then 30 percent. Companies denied a grant before enactment would have applications reconsidered, and regulations are due within 30 days.

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“S. 3325: To Make Companies That Support Venues and Events Eligible for Grants Under the Shuttered Venue Operators Grant Program.” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-117s3325is-bills-117s3325is/, SHA-256 d54255f68b2ba7a222f4939bae0c0060e485168060a0f7291287975d1e91d2fe.

Full text

                                                                                                                                                                        II




                                                                     117TH CONGRESS
                                                                        1ST SESSION
                                                                                                            S. 3325
                                                                       To make companies that support venues and events eligible for grants under
                                                                          the shuttered venue operators grant program, and for other purposes.




                                                                                 IN THE SENATE OF THE UNITED STATES
                                                                                                 DECEMBER 7, 2021
                                                                     Mrs. BLACKBURN (for herself, Ms. CORTEZ MASTO, Mr. HAGERTY, Ms. KLO-
                                                                         BUCHAR, and Mr. WARNOCK) introduced the following bill; which was
                                                                         read twice and referred to the Committee on Small Business and Entre-
                                                                         preneurship




                                                                                                               A BILL
                                                                     To make companies that support venues and events eligible
                                                                        for grants under the shuttered venue operators grant
                                                                        program, and for other purposes.

                                                                       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 ‘‘MUSIC Act’’.
                                                                       5     SEC. 2. ADDING SERVICE AND SUPPORT COMPANIES TO

                                                                       6                             THE SHUTTERED VENUE OPERATORS GRANT

                                                                       7                             PROGRAM.




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                                                                       8              (a) IN GENERAL.—Section 324 of the Economic Aid
                                                                       9 to Hard-Hit Small Businesses, Nonprofits, and Venues

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                                                                       1 Act (title III of division N of Public Law 116–260) is
                                                                       2 amended—
                                                                       3                       (1) in subsection (a)—
                                                                       4                                 (A) in paragraph (1)—
                                                                       5                                        (i) in subparagraph (A)—
                                                                       6                                                 (I) in the matter preceding clause
                                                                       7                                        (i), by inserting ‘‘a service and sup-
                                                                       8                                        port company,’’ after ‘‘theatre oper-
                                                                       9                                        ator,’’;
                                                                     10                                                  (II) in clause (i)—
                                                                     11                                                             (aa) in the matter preceding
                                                                     12                                                  subclause (I), by inserting ‘‘the
                                                                     13                                                  service and support company,’’
                                                                     14                                                  after ‘‘theatre operator,’’; and
                                                                     15                                                             (bb) in subclause (I), by in-
                                                                     16                                                  serting ‘‘a service and support
                                                                     17                                                  company,’’ after ‘‘theatre oper-
                                                                     18                                                  ator,’’;
                                                                     19                                                  (III) in clause (ii)—
                                                                     20                                                             (aa) in subclause (III), by
                                                                     21                                                  striking ‘‘and’’ at the end;
                                                                     22                                                             (bb) in subclause (IV), by
                                                                     23                                                  adding ‘‘and’’ at the end; and
                                                                     24                                                             (cc) by adding at the end



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                                                                     25                                                  the following:


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                                                                       1                                                 ‘‘(V) the service and support
                                                                       2                                        company is or intends to resume the
                                                                       3                                        services and activities described in
                                                                       4                                        paragraph (11);’’; and
                                                                       5                                                 (IV) in clause (vi), by inserting
                                                                       6                                        ‘‘the service and support company,’’
                                                                       7                                        after ‘‘theatre operator,’’ each place
                                                                       8                                        that term appears; and
                                                                       9                                        (ii) in subparagraph (B), by inserting
                                                                     10                                  ‘‘service and support company,’’ after ‘‘the-
                                                                     11                                  atre operator,’’ each place that term ap-
                                                                     12                                  pears; and
                                                                     13                                  (B) by adding at the end the following:
                                                                     14                        ‘‘(11) SERVICE AND SUPPORT COMPANY.—The
                                                                     15               term ‘service and support company’—
                                                                     16                                  ‘‘(A) means an individual or entity—
                                                                     17                                         ‘‘(i) that is assigned a North Amer-
                                                                     18                                  ican Industry Classification System code of
                                                                     19                                  532490,                541410,             541420,             541430,
                                                                     20                                  541490, 561920, 711190, 711300, or
                                                                     21                                  711320, as appears on the most recent in-
                                                                     22                                  come tax filing or on the application for a
                                                                     23                                  loan under paragraph (36) or (37) of sec-
                                                                     24                                  tion 7(a) of the Small Business Act (15



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                                                                       1                                 U.S.C. 636(a)) of the individual or entity,
                                                                       2                                 if applicable; and
                                                                       3                                        ‘‘(ii) that—
                                                                       4                                                 ‘‘(I)(aa) as the principal business
                                                                       5                                        of the individual or entity, provides
                                                                       6                                        stages, lighting, sound, casts, or other
                                                                       7                                        support             for       live      performing      arts
                                                                       8                                        events; and
                                                                       9                                                 ‘‘(bb) for which not less than 70
                                                                     10                                         percent of the earned revenue gen-
                                                                     11                                         erated through providing the support
                                                                     12                                         described in item (aa) is for live per-
                                                                     13                                         forming arts events organized, pro-
                                                                     14                                         moted, produced, managed, or hosted
                                                                     15                                         by an eligible person or entity de-
                                                                     16                                         scribed in paragraph (1)(A)(iii); or
                                                                     17                                                  ‘‘(II)(aa) as the principal busi-
                                                                     18                                         ness of the individual or entity, show-
                                                                     19                                         cases performers or pre-packaged pro-
                                                                     20                                         ductions to potential buyers; and
                                                                     21                                                  ‘‘(bb) for which not less than 70
                                                                     22                                         percent of the earned revenue gen-
                                                                     23                                         erated through showcasing performers
                                                                     24                                         or pre-packaged productions described



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                                                                       1                                        in item (aa) is for live performing arts
                                                                       2                                        events—
                                                                       3                                                            ‘‘(AA) organized, promoted,
                                                                       4                                                 produced, managed, or hosted by
                                                                       5                                                 an eligible person or entity de-
                                                                       6                                                 scribed in paragraph (1)(A)(iii);
                                                                       7                                                 or
                                                                       8                                                            ‘‘(BB) hosted in a hotel or
                                                                       9                                                 convention center facility;
                                                                     10                                  ‘‘(B) includes an individual or entity de-
                                                                     11                        scribed in subparagraph (A) that—
                                                                     12                                         ‘‘(i) operates for profit;
                                                                     13                                         ‘‘(ii) is a nonprofit organization;
                                                                     14                                         ‘‘(iii) is government-owned; or
                                                                     15                                         ‘‘(iv) is a corporation, limited liability
                                                                     16                                  company, or partnership or operated as a
                                                                     17                                  sole proprietorship; and
                                                                     18                                  ‘‘(C) does not include—
                                                                     19                                         ‘‘(i) an individual or entity described
                                                                     20                                  in subparagraph (A) that—
                                                                     21                                                  ‘‘(I) employs more than 250 full-
                                                                     22                                         time employees; or
                                                                     23                                                  ‘‘(II) is registered or operates
                                                                     24                                         outside of the United States; or



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                                                                       1                                        ‘‘(ii) an entity that is majority owned
                                                                       2                                 or controlled by an entity that is an issuer,
                                                                       3                                 the securities of which are listed on a na-
                                                                       4                                 tional securities exchange under section 6
                                                                       5                                 of the Securities Exchange Act of 1934
                                                                       6                                 (15 U.S.C. 78f).’’; and
                                                                       7                       (2) in subsection (b)(2)(B), by adding at the
                                                                       8              end the following:
                                                                       9                                        ‘‘(iii) PRIORITY                    FOR          AWARDS   TO

                                                                     10                                  SERVICE AND SUPPORT COMPANIES.—

                                                                     11                                                  ‘‘(I) FIRST PRIORITY IN AWARD-
                                                                     12                                         ING GRANTS.—During the initial 14-

                                                                     13                                         day period during which service and
                                                                     14                                         support companies are eligible to re-
                                                                     15                                         ceive a grant under this paragraph, in
                                                                     16                                         making awards to those companies,
                                                                     17                                         the Administrator shall only award
                                                                     18                                         grants to those companies with rev-
                                                                     19                                         enue during the period beginning on
                                                                     20                                         April 1, 2020, and ending on Decem-
                                                                     21                                         ber 31, 2020, that is not more than
                                                                     22                                         10 percent of the revenue of the com-
                                                                     23                                         pany during the period beginning on
                                                                     24                                         April 1, 2019, and ending on Decem-



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                                                                       1                                        ber 31, 2019, due to the COVID–19
                                                                       2                                        pandemic.
                                                                       3                                                 ‘‘(II)         SECOND                  PRIORITY   IN

                                                                       4                                        AWARDING GRANTS.—During the 14-

                                                                       5                                        day period immediately following the
                                                                       6                                        14-day period described in clause (i),
                                                                       7                                        in making awards to service and sup-
                                                                       8                                        port companies under this paragraph,
                                                                       9                                        the Administrator shall only award
                                                                     10                                         grants to those companies with rev-
                                                                     11                                         enue, during the period beginning on
                                                                     12                                         April 1, 2020, and ending on Decem-
                                                                     13                                         ber 31, 2020, that is not more than
                                                                     14                                         30 percent of the revenue of the com-
                                                                     15                                         pany during the period beginning on
                                                                     16                                         April 1, 2019, and ending on Decem-
                                                                     17                                         ber 31, 2019, due to the COVID–19
                                                                     18                                         pandemic.’’.
                                                                     19               (b) PROCESSING PREVIOUSLY DENIED APPLICA-
                                                                     20      TIONS.—If a service and support company, as defined in

                                                                     21 paragraph (11) of section 324(a) of the Economic Aid to
                                                                     22 Hard-Hit Small Businesses, Nonprofits, and Venues Act
                                                                     23 (title III of division N of Public Law 116–260), as added
                                                                     24 by subsection (a), was denied a grant under such section



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                                                                     25 before the date of enactment of this Act due to lack of


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                                                                       1 eligibility but, as a result of the amendments made by sub-
                                                                       2 section (a), is eligible for a grant under such section, the
                                                                       3 Administrator of the Small Business Administration shall
                                                                       4 reconsider and process the application of the service and
                                                                       5 support company.
                                                                       6              (c) REGULATIONS.—Not later than 30 days after the
                                                                       7 date of enactment of this Act, the Administrator of the
                                                                       8 Small Business Administration shall issue regulations to
                                                                       9 carry out this Act and the amendments made by this Act
                                                                     10 without regard to the notice requirements under section
                                                                     11 553(b) of title 5, United States Code.
                                                                     12               (d) SENSE OF CONGRESS.—It is the sense of Con-
                                                                     13 gress that the Administrator of the Small Business Ad-
                                                                     14 ministration should—
                                                                     15                        (1) issue guidance to ensure that entities whose
                                                                     16               principal business is to provide services and support
                                                                     17               to the live events industry remain eligible for the
                                                                     18               program established under section 324 of the Eco-
                                                                     19               nomic Aid to Hard-Hit Small Businesses, Non-
                                                                     20               profits, and Venues Act (title III of division N of
                                                                     21               Public Law 116–260); and
                                                                     22                        (2) distribute funds appropriated for the pro-
                                                                     23               gram described in paragraph (1) not later than 120
                                                                     24               days after the date of enactment of this Act.



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