Title: SOS Act
Policy area: Commerce

Summary:
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.
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