Title: MUSIC Act
Policy area: Commerce

Summary:
MUSIC Act
This bill expands eligibility for the Shuttered Venue Operators Grant program, which provides emergency assistance for eligible venues affected by COVID-19, to include service and support companies. These companies (1) provide stages, lighting, sound, casts, or other support for live performing arts events; or (2) showcase performers or prepackaged productions to potential buyers.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6701 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 6701

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 9, 2022

 Mr. Smucker (for himself and Mr. Carter of Louisiana) introduced the 
 following bill; which was referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


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

    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 ``MUSIC Act''.

SEC. 2. ADDING SERVICE AND SUPPORT COMPANIES TO THE SHUTTERED VENUE 
              OPERATORS GRANT PROGRAM.

    (a) In General.--Section 324 of the Economic Aid to Hard-Hit Small 
Businesses, Nonprofits, and Venues Act (title III of division N of 
Public Law 116-260) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)--
                                    (I) in the matter preceding clause 
                                (i), by inserting ``a service and 
                                support company,'' after ``theatre 
                                operator,'';
                                    (II) in clause (i)--
                                            (aa) in the matter 
                                        preceding subclause (I), by 
                                        inserting ``the service and 
                                        support company,'' after 
                                        ``theatre operator,''; and
                                            (bb) in subclause (I), by 
                                        inserting ``a service and 
                                        support company,'' after 
                                        ``theatre operator,'';
                                    (III) in clause (ii)--
                                            (aa) in subclause (III), by 
                                        striking ``and'' at the end;
                                            (bb) in subclause (IV), by 
                                        adding ``and'' at the end; and
                                            (cc) by adding at the end 
                                        the following:
                                    ``(V) the service and support 
                                company is or intends to resume the 
                                services and activities described in 
                                paragraph (11);''; and
                                    (IV) in clause (vi), by inserting 
                                ``the service and support company,'' 
                                after ``theatre operator,'' each place 
                                that term appears; and
                            (ii) in subparagraph (B), by inserting 
                        ``service and support company,'' after 
                        ``theatre operator,'' each place that term 
                        appears; and
                    (B) by adding at the end the following:
            ``(11) Service and support company.--The term `service and 
        support company'--
                    ``(A) means an individual or entity--
                            ``(i) that is assigned a North American 
                        Industry Classification System code of 532490, 
                        541410, 541420, 541430, 541490, 561920, 711190, 
                        711300, or 711320, as appears on the most 
                        recent income tax filing or on the application 
                        for a loan under paragraph (36) or (37) of 
                        section 7(a) of the Small Business Act (15 
                        U.S.C. 636(a)) of the individual or entity, if 
                        applicable; and
                            ``(ii) that--
                                    ``(I)(aa) as the principal business 
                                of the individual or entity, provides 
                                stages, lighting, sound, casts, or 
                                other support for live performing arts 
                                events; and
                                    ``(bb) for which not less than 70 
                                percent of the earned revenue generated 
                                through providing the support described 
                                in item (aa) is for live performing 
                                arts events organized, promoted, 
                                produced, managed, or hosted by an 
                                eligible person or entity described in 
                                paragraph (1)(A)(iii); or
                                    ``(II)(aa) as the principal 
                                business of the individual or entity, 
                                showcases performers or pre-packaged 
                                productions to potential buyers; and
                                    ``(bb) for which not less than 70 
                                percent of the earned revenue generated 
                                through showcasing performers or pre-
                                packaged productions described in item 
                                (aa) is for live events--
                                            ``(AA) organized, promoted, 
                                        produced, managed, or hosted by 
                                        an eligible person or entity 
                                        described in paragraph 
                                        (1)(A)(iii); or
                                            ``(BB) hosted in a hotel or 
                                        convention center facility;
                    ``(B) includes an individual or entity described in 
                subparagraph (A) that--
                            ``(i) operates for profit;
                            ``(ii) is a nonprofit organization;
                            ``(iii) is government-owned; or
                            ``(iv) is a corporation, limited liability 
                        company, or partnership or operated as a sole 
                        proprietorship; and
                    ``(C) does not include--
                            ``(i) an individual or entity described in 
                        subparagraph (A) that--
                                    ``(I) employs more than 250 full-
                                time employees; or
                                    ``(II) is registered or operates 
                                outside of the United States; or
                            ``(ii) an entity that is majority owned or 
                        controlled by an entity that is an issuer, the 
                        securities of which are listed on a national 
                        securities exchange under section 6 of the 
                        Securities Exchange Act of 1934 (15 U.S.C. 
                        78f).''; and
            (2) in subsection (b)(2)(B)--
                    (A) in clause (iii), by striking ``clauses (i) and 
                (ii)'' and inserting ``clauses (i), (ii), and (v)'';
                    (B) in clause (iv), by striking ``clause (i) or 
                (ii)'' and inserting ``clause (i), (ii), or (v)''; and
                    (C) by adding at the end the following:
                            ``(v) Priority for awards to service and 
                        support companies.--
                                    ``(I) First priority in awarding 
                                grants.--During the initial 14-day 
                                period during which service and support 
                                companies are eligible to receive a 
                                grant under this paragraph, in making 
                                awards to those companies, the 
                                Administrator shall only award grants 
                                to those companies with revenue during 
                                the period beginning on April 1, 2020, 
                                and ending on December 31, 2020, that 
                                is not more than 10 percent of the 
                                revenue of the company during the 
                                period beginning on April 1, 2019, and 
                                ending on December 31, 2019, due to the 
                                COVID-19 pandemic.
                                    ``(II) Second priority in awarding 
                                grants.--During the 14-day period 
                                immediately following the 14-day period 
                                described in subclause (I), in making 
                                awards to service and support companies 
                                under this paragraph, the Administrator 
                                shall only award grants to those 
                                companies with revenue, during the 
                                period beginning on April 1, 2020, and 
                                ending on December 31, 2020, that is 
                                not more than 30 percent of the revenue 
                                of the company during the period 
                                beginning on April 1, 2019, and ending 
                                on December 31, 2019, due to the COVID-
                                19 pandemic.''.
    (b) Processing Previously Denied Applications.--If a service and 
support company, as defined in paragraph (11) of section 324(a) of the 
Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act 
(title III of division N of Public Law 116-260), as added by subsection 
(a), was denied a grant under such section before the date of enactment 
of this Act due to lack of eligibility but, as a result of the 
amendments made by subsection (a), is eligible for a grant under such 
section, the Administrator of the Small Business Administration shall 
reconsider and process the application of the service and support 
company.
    (c) Regulations.--Not later than 30 days after the date of 
enactment of this Act, the Administrator of the Small Business 
Administration shall issue regulations to carry out this Act and the 
amendments made by this Act without regard to the notice requirements 
under section 553(b) of title 5, United States Code.
    (d) Sense of Congress.--It is the sense of Congress that the 
Administrator of the Small Business Administration should--
            (1) issue guidance to ensure that entities whose principal 
        business is to provide services and support to the live events 
        industry remain eligible for the program established under 
        section 324 of the Economic Aid to Hard Hit Small Businesses, 
        Nonprofits, and Venues Act (title III of division N of Public 
        Law 116-260); and
            (2) distribute funds appropriated for the program described 
        in paragraph (1) not later than 120 days after the date of 
        enactment of this Act.
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