Save our Stages Act or the SOS Act
This bill authorizes the Small Business Administration (SBA) to make grants to eligible live venue operators, producers, promoters, or talent representatives to address the economic effects of the COVID-19 (i.e., coronavirus disease 2019) pandemic on certain live venues.
Specifically, the SBA may make (1) an initial grant of up to $12 million dollars to an eligible operator, promoter, producer, or talent representative; and (2) a supplemental grant that is equal to 50% of the initial grant. An initial grant must be used for costs incurred between March 1, 2020, and December 31, 2020, but a supplemental grant may be used for expenses incurred through June 30, 2021.
Such grants shall be used for specified expenses such as payroll costs, rent, utilities, and personal protective equipment.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4258 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 4258
To establish a grant program for small live venue operators and talent
representatives.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 22, 2020
Mr. Cornyn (for himself and Ms. Klobuchar) introduced the following
bill; which was read twice and referred to the Committee on Small
Business and Entrepreneurship
_______________________________________________________________________
A BILL
To establish a grant program for small live venue operators and talent
representatives.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Save our Stages Act'' or the ``SOS
Act''.
SEC. 2. GRANTS FOR INDEPENDENT LIVE VENUE OPERATORS.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Small Business Administration.
(2) Eligible operator, promoter, producer, or talent
representative.--
(A) In general.--The term ``eligible operator,
promoter, producer, or talent representative'' means a
live venue operator or producer or promoter or a talent
representative that meets the following requirements:
(i) The live venue operator or producer or
promoter or the talent representative was fully
operational as a live venue operator or
producer or promoter or talent representative
on February 29, 2020.
(ii) As of the date of the grant under this
section--
(I) the live venue operator or
producer or promoter is organizing,
promoting, producing, managing, or
hosting future events described in
paragraph (4)(A)(i); or
(II) the talent representative is
representing or managing artists and
entertainers.
(iii) The venues at which the live venue
operator or producer or promoter promotes,
produces, manages, or hosts events described in
paragraph (4)(A)(i) or the artists and
entertainers represented or managed by the
talent representative perform have the
following characteristics:
(I) A defined performance and
audience space.
(II) A mixing desk, public address
system, and lighting rig.
(III) Employs not less than two of
the following:
(aa) A sound engineer.
(bb) A booker.
(cc) A promoter.
(dd) A stage manager.
(ee) Security personnel.
(ff) A box office manager.
(IV) There is a paid ticket or
cover charge to attend most
performances and artists are paid
fairly and do not play for free or
solely for tips, except for legitimate
fundraisers or similar charitable
events.
(V) For a venue owned or operated
by a nonprofit entity that produces
free events, the events are produced
and managed by paid employees, not by
volunteers.
(VI) Performances are marketed
through listings in printed or
electronic publications, on websites,
by mass email, or on social media.
(iv) The live venue operator or producer or
promoter or the talent representative does not
have, or is not majority owned or controlled by
an entity with, more than one of the following
characteristics:
(I) Being an issuer, the securities
of which are listed on a national
securities exchange.
(II) Owning or operating venues or
talent agencies or talent management
companies with offices in more than 1
country.
(III) Owning or operating venues in
more than 10 States.
(IV) Employing more than 500
employees, determined on a full-time
equivalent basis in accordance with
subparagraph (B).
(V) Receiving more than 10 percent
of gross revenue from Federal funding.
(B) Calculation of full-time employees.--For
purposes of determining the number of full-time
equivalent employees under subparagraph (A)(iv)(IV)--
(i) any employee working not fewer than 30
hours per week shall be considered a full-time
employee; and
(ii) any employee working not fewer than 10
hours and fewer than 30 hours per week shall be
counted as one-half of a full-time employee.
(3) Exchange; issuer; security.--The terms ``exchange'',
``issuer'', and ``security'' have the meanings given such terms
in section 3(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)).
(4) Live venue operator or producer or promoter.--The term
``live venue operator or producer or promoter''--
(A) means an individual or entity that--
(i) as not less than 70 percent of the
operations of the person, organizes, promotes,
sells tickets, produces, manages, or hosts live
concerts, comedy shows, theatrical productions,
or other events by performing artists and
applies a cover charge through ticketing or a
front door entrance fee; or
(ii) makes tickets to events described in
clause (i) available for purchase by the public
an average of not less than 60 days before the
date of the event and pays performers in an
event described in clause (i) in an amount that
is based on a percentage of sales, guarantee
(in writing or standard contract), or another
mutually beneficial formal agreement; and
(B) includes an individual or entity described in
subparagraph (A) that--
(i) operates for profit or as a nonprofit;
(ii) is government-owned; or
(iii) is a corporation, limited liability
company, or partnership or operated as a sole
proprietorship.
(5) National securities exchange.--The term ``national
securities exchange'' means an exchange registered as a
national securities exchange under section 6 of the Securities
Exchange Act of 1934 (15 U.S.C. 78f).
(6) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
(7) Talent representative.--The term ``talent
representative''--
(A) means an agent or manager that--
(i) as not less than 70 percent of the
operations of the agent or manager, is engaged
in representing or managing artists and
entertainers;
(ii) books musicians, comedians, actors, or
similar performing artists primarily in
independent venues or at festivals; and
(iii) represents performers described in
clause (ii) that are paid in an amount that is
based on the number of tickets sold, or a
similar basis; and
(B) includes an agent or manager described in
subparagraph (A) that--
(i) operates for profit or as a nonprofit;
(ii) is government-owned; or
(iii) is a corporation, limited liability
company, or partnership or operated as a sole
proprietorship.
(b) Authority.--
(1) Initial grants.--The Administrator may make initial
grants to eligible operators, promoters, and talent
representatives in accordance with this section.
(2) Supplemental grants.--The Administrator may make a
supplemental grant in accordance with this section to an
eligible operator, promoter, producer, or talent representative
that receives a grant under paragraph (1) if, as of December 1,
2020, the revenues of the eligible operator, promoter,
producer, or talent representative for the most recent calendar
quarter are not more than 20 percent of the revenues of the
eligible operator, promoter, producer, or talent representative
for the corresponding calendar quarter during 2019 due to the
COVID-19 pandemic.
(c) Amount.--
(1) Initial grants.--A grant under subsection (b)(1) shall
be in the amount equal to the lesser of--
(A) the amount equal to 45 percent of the gross
revenue of the eligible operator, promoter, producer,
or talent representative during 2019;
(B) for an eligible operator, promoter, producer,
or talent representative that began operations after
January 1, 2019, the amount equal to the product
obtained by multiplying--
(i) the average monthly gross revenue for
each full month during which the entity was in
operation during 2019; by
(ii) 6; or
(C) $12,000,000.
(2) Supplemental grants.--A grant under subsection (b)(2)
shall be in the amount equal to 50 percent of the grant
received by the eligible operator, promoter, producer, or
talent representative under subsection (b)(1).
(d) Use of Funds.--
(1) Timing.--
(A) Expenses incurred.--
(i) In general.--Except as provided in
clause (ii), amounts received under a grant
under this section may be used for costs
incurred during the period beginning on March
1, 2020, and ending on December 31, 2020.
(ii) Extension for supplemental grants.--If
an eligible operator, promoter, producer, or
talent representative receives a grant under
subsection (b)(2), amounts received under
either grant under this section may be used for
costs incurred during the period beginning on
March 1, 2020, and ending on June 30, 2021.
(B) Expenditure.--
(i) In general.--Except as provided in
clause (ii), an eligible operator, promoter,
producer, or talent representative shall return
to the Administrator any amounts received under
a grant under this section that are not
expended on or before the date that is 1 year
after the date of disbursement of the grant.
(ii) Extension for supplemental grants.--If
an eligible operator, promoter, producer, or
talent representative receives a grant under
subsection (b)(2), the eligible operator,
promoter, producer, or talent representative
shall return to the Administrator any amounts
received under either grant under this section
that are not expended on or before the date
that is 18 months after the date of
disbursement to the eligible operator,
promoter, producer, or talent representative of
the grant under subsection (b)(1).
(2) Allowable expenses.--An eligible operator, promoter,
producer, or talent representative may use amounts received
under a grant under this section for--
(A) payroll costs for employees and furloughed
employees, including--
(i) costs for continuation coverage
provided pursuant to part 6 of subtitle B of
title I of the Employee Retirement Income
Security Act of 1974 (other than under section
609), title XXII of the Public Health Service
Act, section 4980B of the Internal Revenue Code
of 1986 (other than subsection (f)(1) of such
section insofar as it relates to pediatric
vaccines), or section 8905a of title 5, United
States Code, or under a State program that
provides comparable continuation coverage,
other than coverage under a health flexible
spending arrangement under a cafeteria plan
within the meaning of section 125 of the
Internal Revenue Code of 1986; or
(ii) any other non-cash benefit;
(B) rent;
(C) utilities;
(D) mortgage interest payments on existing
mortgages as of February 15, 2020;
(E) scheduled interest payments on other scheduled
debt as of February 15, 2020;
(F) costs related to personal protective equipment;
(G) payments of principal on outstanding loans;
(H) payments made to independent contractors, as
reported on Form-1099 MISC; and
(I) other ordinary and necessary business expenses,
including--
(i) settling existing debts owed to
vendors;
(ii) maintenance expenses;
(iii) administrative costs;
(iv) taxes;
(v) operating leases;
(vi) insurance; and
(vii) any other capital expenditure or
expense required under any State, local, or
Federal law or guideline related to social
distancing.
(3) Prohibited expenses.--An eligible operator, promoter,
producer, or talent representative may not use amounts received
under a grant under this section--
(A) to purchase real estate;
(B) for payments of interest or principal on loans
originated after February 15, 2020;
(C) to invest or re-lend funds;
(D) for contributions or expenditures to, or on
behalf of, any political party, party committee, or
candidate for elective office; or
(E) for any other use as may be prohibited by the
Administrator.
(e) Authorization of Appropriations.--There is authorized to be
appropriated $10,000,000,000 to carry out this section.
<all>
Introduced in Senate
Read twice and referred to the Committee on Small Business and Entrepreneurship.
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