The Music Act Closer To Reality

December 7, 2021—The MUSIC Act was reintroduced in the Senate. The new bill is a bi-partisan effort, with Republican Senators Blackburn and Hagerty and Democratic Senators Klobuchar, Warnock, and Cortez Masto all as sponsors. This new legislation serves to allow those left behind by SVOG to receive grants from the remaining funds.

This new version of The MUSIC Act is especially important as it reflects bi-partisan support, which was previously not visible. Notably on board is Senator Klobuchar who was the creator of the Save Our Stages bill which created the SVOG fund. Senator Klobuchar and the others have come forward and recognized the need for those left behind by SVOG to receive much needed relief grants just as others in the entertainment industry have.

This is one more step closer to passage. There should be one further announcement / action taken in the Senate to further cement the passage of The MUSIC Act. That step should occur this week.

Please reach out to your two Senators and urge them to Support The MUSIC Act in order to finish what 

Congress started with Save Our Stages to help those left behind by SVOG.

Also remember to thank those brave people in Congress for all of their valuable support for our industry.

The Music Act:

MIR21G84 NWK S.L.C.

117TH CONGRESS

1ST SESSION S.

ll

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

llllllllll

Mrs. BLACKBURN (for herself, Ms. CORTEZ MASTO, Mr. HAGERTY, Ms. KLOBUCHAR,

and Mr. WARNOCK) introduced the following bill; which was

read twice and referred to the Committee on llllllllll

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 Representa2

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.

8 (a) IN GENERAL.—Section 324 of the Economic Aid

9 to Hard-Hit Small Businesses, Nonprofits, and Venues

2

MIR21G84 NWK S.L.C.

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 sup8

port company,’’ after ‘‘theatre oper9

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 in16

serting ‘‘a service and support

17 company,’’ after ‘‘theatre oper18

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

25 the following:

3

MIR21G84 NWK S.L.C.

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 ‘‘the11

atre operator,’’ each place that term ap12

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 Amer18

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 in22

come tax filing or on the application for a

23 loan under paragraph (36) or (37) of sec24

tion 7(a) of the Small Business Act (15

4

MIR21G84 NWK S.L.C.

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 gen11

erated through providing the support

12 described in item (aa) is for live per13

forming arts events organized, pro14

moted, produced, managed, or hosted

15 by an eligible person or entity de16

scribed in paragraph (1)(A)(iii); or

17 ‘‘(II)(aa) as the principal busi18

ness of the individual or entity, show19

cases performers or pre-packaged pro20

ductions to potential buyers; and

21 ‘‘(bb) for which not less than 70

22 percent of the earned revenue gen23

erated through showcasing performers

24 or pre-packaged productions described

5

MIR21G84 NWK S.L.C.

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 de6

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 de11

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 full22

time employees; or

23 ‘‘(II) is registered or operates

24 outside of the United States; or

6

MIR21G84 NWK S.L.C.

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 na4

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 AWARD12

ING GRANTS.—During the initial 14-

13 day period during which service and

14 support companies are eligible to re15

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 rev19

enue during the period beginning on

20 April 1, 2020, and ending on Decem21

ber 31, 2020, that is not more than

22 10 percent of the revenue of the com23

pany during the period beginning on

24 April 1, 2019, and ending on Decem7

MIR21G84 NWK S.L.C.

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 sup8

port companies under this paragraph,

9 the Administrator shall only award

10 grants to those companies with rev11

enue, during the period beginning on

12 April 1, 2020, and ending on Decem13

ber 31, 2020, that is not more than

14 30 percent of the revenue of the com15

pany during the period beginning on

16 April 1, 2019, and ending on Decem17

ber 31, 2019, due to the COVID–19

18 pandemic.’’.

19 (b) PROCESSING PREVIOUSLY DENIED APPLICA20

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

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

8

MIR21G84 NWK S.L.C.

1 eligibility but, as a result of the amendments made by sub2

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 Con13

gress that the Administrator of the Small Business Ad14

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 Eco19

nomic Aid to Hard Hit Small Businesses, Non20

profits, and Venues Act (title III of division N of

21 Public Law 116–260); and

22 (2) distribute funds appropriated for the pro23

gram described in paragraph (1) not later than 120

24 days after the date of enactment of this Act.