89 HR 7894 IH: Supporting Theater and the Arts to Galvanize the Economy Act
U.S. House of Representatives
2024-04-09
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I
118th CONGRESS
2d Session
H. R. 7894
IN THE HOUSE OF REPRESENTATIVES
April 9, 2024
Ms. Bonamici introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Financial Services, and Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Public Works and Economic Development Act of 1965 to authorize the Secretary of Commerce to make grants to professional nonprofit theaters for the purposes of supporting operations, employment, and economic development.
1.

Short title
This Act may be cited as the “Supporting Theater and the Arts to Galvanize the Economy Act” or the “STAGE Act”.
2.

Professional nonprofit theater grants
(a)

In general
Title II of the Public Works and Economic Development Act of 1965 is amended by inserting after section 207 (42 U.S.C. 3147) the following:
“208.

Professional nonprofit theater grants
(a)

Establishment
The Secretary shall establish a grant program, to be known as the “Professional Nonprofit Theater Grant Program” (referred to in this section as the “program”), to provide to eligible entities funding for the purposes of—
(1)
supporting employment and economic recovery;
(2)
stimulating economic development;
(3)
strengthening community-based arts organizations; and
(4)
improving theater facilities.
(b)

Eligible entities
(1)

In general
An entity eligible to receive a grant under the program is a nonprofit organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of that Code—
(A)
that produces or presents live theater and other performing arts;
(B)
that compensates all professional performers and related or supporting professional personnel at a rate that is not less than the prevailing minimum compensation for persons employed in similar activities as described in section 5(m) of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 954(m));
(C)
that, prior to the date of application, has not less than a 3-year history of programming;
(D)
(i)
that demonstrates a loss in gross or net revenue, adjusted for inflation, as defined by the Secretary; or
(ii)
that primarily serves historically underserved communities, including populations whose opportunities to experience the arts have been limited relative to geography, economics, race or ethnicity, or disability;
(E)
that has no net earnings benefitting a private stockholder or individual;
(F)
the primary purpose of which is the nonprofit arts industry; and
(G)
that, during the 3-year period preceding the date of application, has not been issued an administrative merits determination, arbitral award or decision, or civil judgment, as defined in regulations issued by the Secretary of Labor, for any violation of—
(i)
the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.);
(ii)
the Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et seq.);
(iii)
subchapter IV of chapter 31 of title 40, United States Code (commonly known as the “Davis-Bacon Act”);
(iv)
chapter 67 of title 41, United States Code (commonly known as the “Service Contract Act”);
(v)
Executive Order 11246 (42 U.S.C. 2000e note; relating to equal employment opportunity);
(vi)
section 503 of the Rehabilitation Act of 1973 (29 U.S.C. 793);
(vii)
section 4212 of title 38, United States Code;
(viii)
the Family and Medical Leave Act of 1993 (29 U.S.C. 2601 et seq.);
(ix)
title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.);
(x)
title I of the Americans with Disabilities Act of 1990 (42 U.S.C. 12111 et seq.);
(xi)
the Age Discrimination in Employment Act of 1967 (29 U.S.C. 621 et seq.);
(xii)
Executive Order 13658 (79 Fed. Reg. 9851; relating to establishing a minimum wage for contractors);
(xiii)
the Pregnant Workers Fairness Act (42 U.S.C. 2000gg et seq.);
(xiv)
the National Labor Relations Act (29 U.S.C. 151 et seq.); or
(xv)
any applicable State or local labor or employment law, as defined in regulations issued by the Secretary of Labor.
(2)

Definition of 3-year history of programming
(A)

In general
In this subsection, the term 3-year history of programming means a period of 3 or more years, consecutively or nonconsecutively, beginning before August 1, 2020, during which the nonprofit organization provided programming.
(B)

Inclusion
In the case of a nonprofit organization that previously operated a program as a part of another entity, the nonprofit organization may include in the 3-year history of programming any arts programming carried out by the nonprofit organization as part of the other entity.
(c)

Applications
(1)

In general
To be eligible to receive a grant under the program, an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.
(2)

Assistance
In the case of an eligible entity with low organizational capacity, as determined by the Secretary, the Secretary may waive the prohibition under section 213.
(3)

Additional requirements
In any application submitted under paragraph (1), an eligible entity shall include an attestation to the Secretary that during the term of the grant—
(A)
the eligible entity will not abrogate existing collective bargaining agreements of employees of the eligible entity;
(B)
the eligible entity will remain neutral regarding any labor organizing efforts by the employees of the eligible entity;
(C)
the eligible entity will provide workplace conditions that are sanitary and not hazardous or dangerous to the health and safety of an employee as provided under section 5(m) of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 954(m));
(D)
the eligible entity will compensate all professional performers and related or supporting professional personnel at a rate that is not less than the prevailing minimum compensation for persons employed in similar activities as described in section 5(m) of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 954(m)); and
(E)
the use of funds by the eligible entity will contribute to providing or facilitating gainful employment for professional performers and related or supporting professional personnel.
(d)

Eligible uses
A grant provided under the program may be used for any of the following, subject to the condition that the use will contribute to the long-term economic viability of the eligible entity and the employment of professional performers and related or supporting professional personnel:
(1)
Payroll costs for professional performers and related or supporting professional personnel.
(2)
Rent, utilities, mortgage interest payments, scheduled interest payments on scheduled debt and outstanding loans, administrative costs, and other ordinary and necessary business and operating expenses, as determined by the Secretary.
(3)
Expenses associated with the fabrication of scenery, costumes, and other elements for live theatrical productions.
(4)
Costs associated with the improvement, repair, or maintenance of an existing facility housing theatrical productions, projects, performances, workshops, or programs, with priority given to costs for upgrades necessary for fully accessible workplaces for professional performers and related or supporting professional personnel with disabilities.
(5)
Marketing expenses to promote productions, projects, performances, workshops, programs, or recruitment of staff and artists.
(6)
Investments in workforce development programs, including paid job training and retraining programs related to the operation of professional nonprofit theaters.
(7)
In the case of an eligible entity that has, during the 3-year period preceding the date of application, an average combined annual revenue and assets of less than $30,000,000, costs associated with the construction or acquisition of a new facility to house theatrical productions, projects, performances, workshops, or programs.
(8)
Other uses, as determined by the Secretary.
(e)

Limitations
(1)

In general
A grant provided under the program shall not exceed an amount equal to the lesser of—
(A)
20 percent of the total expenditures of the eligible entity during the most recent fiscal year; and
(B)
$16,000,000.
(2)

No reduction of professional performers
An eligible entity may not use trainees, interns, or other similar positions to displace, substitute for, supplant, or otherwise replace professional performers and related or supporting professional personnel.
(f)

Priority
In providing grants under the program, the Secretary may give priority to—
(1)
an application from an eligible entity that plans to allocate the majority of the grant funds for uses described in subsection (d)(1); and
(2)
an application from an eligible entity that serves as the primary theatrical venue for a geographical region.
(g)

Technical assistance
(1)

In general
The Secretary may use not more than 1 percent of funds made available to carry out the program to provide technical assistance to eligible entities requiring assistance navigating the Federal grants process.
(2)

Priority
In providing technical assistance under paragraph (1), the Secretary shall give priority to eligible entities that have not previously received a Federal grant.
(h)

Authorization of appropriations
(1)

In general
There is authorized to be appropriated to the Secretary to carry out the program $1,000,000,000 for each of fiscal years 2024 through 2028.
(2)

Reservations
Of the amounts made available under paragraph (1) for each fiscal year, not less than 50 percent shall be reserved for eligible entities that primarily produce theater.”.
(b)

Clerical amendment
The table of contents contained in section 1(b) of the Public Works and Economic Development Act of 1965 (Public Law 89–136; 79 Stat. 552; 112 Stat. 3597; 118 Stat. 1761) is amended by inserting after the item relating to section 207 the following:
“Sec. 208. Professional nonprofit theater grants.”.
3.

Study on sustaining the nonprofit arts sector
(a)

In general
Not later than 2 years after the date of enactment of this Act, the President’s Committee on the Arts and the Humanities, in consultation with the Chairperson of the National Endowment for the Arts, the Chairperson of the National Endowment for the Humanities, and the Director of the Institute of Museum and Library Services, shall conduct a study on Federal support for the nonprofit arts sectors.
(b)

Contents
In conducting the study under subsection (a), the President’s Committee on the Arts and the Humanities shall consider, and include recommendations regarding, the steps the Federal Government can take to sustain the nonprofit arts sector and bolster the economic impact of that sector for workers, small businesses, and communities, including rural and underserved communities.
(c)

Stakeholder input
In conducting the study under subsection (a), the President’s Committee on the Arts and the Humanities shall solicit input from stakeholders, including artists, nonprofit arts organizations and employees of nonprofit arts organizations, small businesses, organized labor organizations representing workers in the nonprofit arts sector, and State, local, and Tribal governments.
(d)

Report
Not later than 2 years after the date of enactment of this Act, the President’s Committee on the Arts and the Humanities shall—
(1)
submit to Congress a report on the results of the study conducted under subsection (a); and
(2)
make the report publicly available.
(e)

Authorization of appropriations
There is authorized to be appropriated $1,000,000 to carry out this section.