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.