Regular Session 2019-2020 House Bill 2894 P.N. 4498

PRINTER'S NO. 4498

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2894

Session of

2020

INTRODUCED BY WHEATLEY, FREEMAN, McNEILL, HOWARD, LONGIETTI,

DRISCOLL, A. DAVIS, SAMUELSON, BURGOS, SANCHEZ, GALLOWAY,

DeLUCA, CIRESI, DEASY, LEE, BRIGGS, INNAMORATO AND SOLOMON,

OCTOBER 14, 2020

REFERRED TO COMMITTEE ON COMMERCE, OCTOBER 14, 2020

AN ACT

Establishing the Save Our Stages (SOS) Grant Program and the

Save Our Stages (SOS) Fund; providing for duties of the

Department of Community and Economic Development; and making

an appropriation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Save Our

Stages (SOS) Act.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"CARES Act." The Coronavirus Aid, Relief, and Economic

Security Act (Public Law 116-136, 134 Stat. 281).

"COVID-19." The coronavirus disease 2019, an infectious

disease caused by severe acute respiratory syndrome coronavirus

"Department." The Department of Community and Economic

Development of the Commonwealth.

"Eligible operator, producer or promoter." As follows:

(1) A live venue operator, producer or promoter that

meets the following requirements:

(i) The live venue operator, producer or promoter

was fully operational within this Commonwealth as a live

venue operator, producer or promoter on February 29,

2020.

(ii) As of the date of the grant under this act, the

live venue operator, producer or promoter is organizing,

promoting, producing, managing or hosting future events

described in paragraph (1)(i) of the definition of "live

venue operator, producer or promoter."

(iii) The venue at which the live venue operator,

producer or promoter promotes, produces, manages or hosts

events described in paragraph (1)(i) of the definition of

"live venue operator, producer or promoter":

(A) Has a defined performance and audience

space.

(B) Has a mixing desk, public address system and

lighting rig.

(I) A sound engineer.

(II) A booker.

(III) A promoter.

(IV) A stage manager.

(V) Security personnel.

(VI) A box office manager.

(VII) An executive director, program

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director or the equivalent of an executive

director or program director.

(D) Has a paid ticket or cover charge to attend

most performances, where artists and entertainers are

paid fairly and do not play for free or solely for

tips, except for legitimate fundraisers or similar

charitable events.

(E) For a venue owned or operated by a nonprofit

entity that produces free events, produces and

manages events by paid employees, not by volunteers.

(F) Markets performances through listings in

printed or electronic publications, on websites, by

mass e-mail or on social media.

(iv) The live venue operator, producer or promoter

does not have, or is not majority-owned or controlled by

an entity with more than one of the following

characteristics:

(A) Being an issuer, the securities of which are

listed on a national securities exchange.

(B) Owning or operating venues or talent

agencies or talent management companies with offices

in more than one country.

states.

(D) Employing more than 500 employees,

determined on a full-time equivalent basis, in

accordance with paragraph (2).

(E) Receiving more than 10% of gross revenue

from Federal funding.

(2) For purposes of determining the number of full-time

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equivalent employees under paragraph (1)(iv)(D):

(i) An employee working not fewer than 30 hours per

week shall be considered a full-time employee.

(ii) An 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.

"Exchange." As defined in section 3(a) of the Securities

Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78c(a)(1)).

"Fund." The Save Our Stages (SOS) Fund established under

section 4.

"Issuer." As defined in section 3(a) of the Securities

Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78c(a)(8)).

"Live venue operator, producer or promoter." As follows:

(1) An individual or entity domiciled in this

Commonwealth that:

(i) as not less than 70% of the operations of the

individual or entity, organizes, promotes, sells tickets,

produces, manages or hosts a live concert, comedy show,

theatrical production or other event by a performing

artist and applies a cover charge through ticketing or a

front door entrance fee; or

(ii) makes tickets to an event described in

subparagraph (i) available for purchase by the public an

average of not fewer than 60 days before the date of the

event and pays the performing artist in the event an

amount that is based on a percentage of sales, on a

guarantee in writing or in a standard contract or another

mutually beneficial formal agreement.

(2) The term shall include an individual or entity

described in paragraph (1) that:

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(i) operates on a for-profit basis or nonprofit

basis;

(ii) is government-owned; or

(iii) is a corporation, limited liability company or

partnership or operated as a sole proprietorship.

"National securities exchange." An exchange registered as a

national securities exchange under section 6 of the Securities

Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. 78f).

"Program." The Save Our Stages (SOS) Program established

under section 3.

"Secretary." The Secretary of Community and Economic

Development of the Commonwealth.

"Security." As defined in section 3(a) of the Securities

Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78c(a)(10)).

"State." A state of the United States, the District of

Columbia, the Commonwealth of Puerto Rico or any territory or

possession of the United States.

Section 3. Save Our Stages (SOS) Grant Program.

(a) Establishment.--The Save Our Stages (SOS) Grant Program

is established within the department.

(b) Duties of department.--The department shall provide

grants under the program in accordance with this act for an

eligible operator, producer or promoter.

Section 4. Save Our Stages (SOS) Fund.

(a) Establishment.--The Save Our Stages (SOS) Fund is

established as a special fund in the State Treasury.

(b) Use of fund.--Money appropriated under section 11 shall

be deposited into the fund to be used exclusively by the

department to award grants to each eligible operator, producer

or promoter.

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Section 5. Grants for independent live venue operators.

(a) Authority.--The secretary may make an initial grant to

an eligible operator, producer or promoter in accordance with

this section.

(b) Amount.--A grant under subsection (a) shall be in the

amount equal to the greater of the following:

(1) The amount equal to 45% of the gross revenue of the

eligible operator, producer or promoter during 2019.

(2) For an eligible operator, producer or promoter that

began operations after January 1, 2019, the amount equal to

the product obtained by multiplying the average monthly gross

revenue for each full month during which the entity was in

operation during 2019 by six.

(3) $2,000,000.

(1) An eligible operator, producer or promoter may use

amounts received under a grant under this section for any of

the following:

(i) Payroll costs for employees and furloughed

employees.

(ii) Rent.

(iii) Utilities.

(iv) Mortgage interest payments on existing

mortgages as of February 15, 2020.

(v) Scheduled interest payments on other scheduled

debt as of February 15, 2020.

(vi) Costs related to personal protective equipment.

(vii) Payments of principal on outstanding loans.

(viii) Payments made to independent contractors, as

reported on Form-1099 MISC.

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(ix) Other ordinary and necessary business expenses,

including any of the following:

(A) Settling existing debts owed to vendors.

(B) Maintenance expenses.

(D) Taxes.

(E) Operating leases.

(F) Insurance.

(G) Any other capital expenditure or expense

required under Federal, State or local law or

guideline related to social distancing.

(2) An eligible operator, producer or promoter may not

use amounts received under a grant under this section:

(i) to purchase real estate;

(ii) for payments of interest or principal on loans

originated after February 15, 2020;

(iii) to invest or re-lend money;

(iv) for contributions or expenditures to, or on

behalf of, a political party, party committee or

candidate for elective office; or

(v) for any other use as may be prohibited by the

secretary.

Section 6. Grant application forms.

(a) Development.--The department shall develop a grant

application form for a live venue operator, producer or promoter

to apply for a grant under the program.

(b) Contents.--At minimum, the grant application form shall

include the following information:

(1) The name, address and contact information of the

applicant.

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(2) The applicant's eligibility for a grant under the

program.

(3) The amount of grant money requested under the

program.

(4) Any other information that the department deems

necessary and appropriate.

must submit the grant application form required under this

section to the department in the manner prescribed by the

department.

Section 7. Award of grants.

(a) Review of grants.--Not later than 20 days after receipt

of the grant application form under section 6, the department

shall review the grant application form and determine whether to

award a grant to the applicant under the program and, if so, the

amount of grant money to be awarded.

(b) Notice.--After conducting a review of the grant

application under subsection (a), the department shall provide

written notice to the applicant of the award or denial of the

grant under the program. The following shall apply:

(1) Notice of the award of a grant under the program

shall include the amount of the grant money awarded and all

conditions or restrictions on the use of the grant money.

(2) Notice of the denial of all or part of the grant

money requested under the program on the grant application

under subsection (a) shall include the reasons for full or

partial denial.

Section 8. Guidelines.

The department may promulgate guidelines for the

implementation and administration of this act.

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Section 9. Public notice.

The department shall provide information regarding the

availability of grants under the program on the publicly

accessible Internet website of the department.

Section 10. Limitation on award of grants.

Subject to the availability of funding, a grant to an

applicant under the program shall not exceed $2,000,000.

Section 11. Appropriation.

The sum of $200,000,000 of the money available to the

Commonwealth under the CARES Act and any additional future

Federal dollars is appropriated to the department for the

purpose of awarding grants to applicants under the program.

Section 12. Expiration.

This act shall expire December 31, 2021.

Section 13. Effective date.

This act shall take effect immediately.

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