Legislative Update: Negotiations Continue for a Stimulus Bill

Even as Congressional negotiations for a new stimulus bill seems to have stalled, Representative Nancy Pelosi and Senator Mitch McConnell are doubling down on their determination to get something that will pass both houses.

"Exactly when that deal comes together, I can't tell you, but I think it will at some point in the near future," McConnell said.

"Will we find a solution? We will," Pelosi said in a separate interview shortly after McConnell. "Will we have an agreement? We will."

Today is the self-imposed deadline for the parties to make an agreement, a possibility that seems to be receding in real time. But it now looks as if negotiations will continue until a bill is produced.

Meanwhile, pressure is being applied from many sectors. Pennsylvania governor Tom Wolf wrote the members of his state's Congressional delegation, urging their support for the RESTART Act, which is designed to shore up small businesses, and the Save Our Stages Act, for independent music venues, promoters, and more. He noted, "Live entertainment is an economic engine for many communities across the Commonwealth of Pennsylvania, creating thousands of jobs, generating a large amount of tourism, and creating important cultural hubs in our communities. However, the industry has faced many challenges and will continue to do so in the coming months. The live entertainment industry relies on packing large crowds into venues, making them an early victim of social distancing protocols. The industry was among the first to close and will likely be the last to reopen. With already-thin profit margins and the logistical challenges of tour planning, operating at limited capacity is simply not an option. With experts predicting concerts and other live productions will not resume until sometime in 2021, it is imperative that action be taken to protect these spaces from closing."

Wolf's letter cites the National Independent Venue Association (NIVA), which has been pressing Congress. Another letter was sent by a number of key companies and associations -- including American Association of Independent Music, Amazon Music, ASCAP, BMI, Eventbrite, RIAA, Sirius XM + Pandora, Sony Music Entertainment, Spotify, Universal Music Group, Warner Music Group, and YouTube -- to the Senate and House Committees on Small Business. It also supports the RESTART Act. In part, the letter notes, "Beloved venues in all corners of America are already shutting down forever. Each venue's closing is accompanied by the reality that communities are losing their local economic and cultural hubs. Their absence will be sorely felt; for every $1 spent on a ticket at small venues, a total of $12 in economic activity is generated within communities at restaurants, hotels, taxis, and retail establishments. Keeping independent venues alive is a benefit not just for fans, employees, and artists; it's an investment in communities across America."

Support for the RESTART Act is also coming from a coalition of not-for-profits that includes American Cancer Society, American Heart Association, American Lung Association, Americans for the Arts, Association of Art Museum Directors, League of American Orchestras, Lutheran Services of America, and March of Dimes, among others. They are urging Senators Michael Bennet and Todd Young, authors of the RESTART Act, to tweak the legislation, noting, "We are disappointed that this loan program contains terms that disadvantage nonprofits in comparison to for-profit entities. Specifically, mid-sized businesses would have more favorable terms than mid-size charities, including loan forgiveness."

That this is counterproductive is almost self-evident, they note: "Beyond the inherent public good that these charities are providing to families and communities during COVID-19, we are employers with operations affected to the same extent if not more than some for-profit businesses. According to the U.S. Bureau of Labor Statistics, nonprofits with more than 500 employees employ 7.7 million people. We are the third largest employer in the economy after manufacturing and retail."

Clearly, the situation is highly fluid, and everything is up for grabs. Michael T. Strickland, of Bandit Lites, who is closely monitoring events and helping to drive industry lobbying efforts, points out that any final legislation will most likely combine elements of the HEROES Act (passed by the House on May 15), the HEALS Act (currently proffered by the GOP), the RESTART Act (supported by a bipartisan plurality of senators), and the Save Our Stages Act. Strickland reported this morning, "While the meeting last night did make some progress, no agreement was reached. However, the Senate is coming back in session next week to continue their work toward a relief package." However, he cautions, "There is still no clear word of what language is most likely being used in regard to further small business relief." He added that any agreements with enhanced unemployment benefits and an eviction moratorium will most likely be retroactive, good news for those who need both.

Strickland added, "It would be prudent if everyone again sent a short, personal email to your senators reminding them how urgent this is for you and the live event industry that they pass a relief bill with the RESTART language included." Even if you believe your senators support industry relief, it's important to raise your voice again, as priorities can shift during negotiations. To find contact information for you senators, go to the URL listed below. And stay tuned to our website and Facebook pages for updates as they happen.