[Senate Hearing 116-633]
[From the U.S. Government Publishing Office]


                                                        S. Hrg. 116-633

                   EXAMINING THE IMPACT OF COVID-19 ON THE 
                     LIVE EVENT ENTERTAINMENT INDUSTRY

=======================================================================

                                HEARING

                                BEFORE THE

                 SUBCOMMITTEE ON MANUFACTURING, TRADE,
                         AND CONSUMER PROTECTION

                                 OF THE

                         COMMITTEE ON COMMERCE,
                      SCIENCE, AND TRANSPORTATION
                          UNITED STATES SENATE

                     ONE HUNDRED SIXTEENTH CONGRESS

                             SECOND SESSION

                               __________

                           DECEMBER 15, 2020

                               __________

    Printed for the use of the Committee on Commerce, Science, and 
                             Transportation
                             
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                Available online: http://www.govinfo.gov
                
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                    U.S. GOVERNMENT PUBLISHING OFFICE                    
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       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                     ONE HUNDRED SIXTEENTH CONGRESS

                             SECOND SESSION

                  ROGER WICKER, Mississippi, Chairman
JOHN THUNE, South Dakota             MARIA CANTWELL, Washington, 
ROY BLUNT, Missouri                      Ranking
TED CRUZ, Texas                      AMY KLOBUCHAR, Minnesota
DEB FISCHER, Nebraska                RICHARD BLUMENTHAL, Connecticut
JERRY MORAN, Kansas                  BRIAN SCHATZ, Hawaii
DAN SULLIVAN, Alaska                 EDWARD MARKEY, Massachusetts
CORY GARDNER, Colorado               TOM UDALL, New Mexico
MARSHA BLACKBURN, Tennessee          GARY PETERS, Michigan
SHELLEY MOORE CAPITO, West Virginia  TAMMY BALDWIN, Wisconsin
MIKE LEE, Utah                       TAMMY DUCKWORTH, Illinois
RON JOHNSON, Wisconsin               JON TESTER, Montana
TODD YOUNG, Indiana                  KYRSTEN SINEMA, Arizona
RICK SCOTT, Florida                  JACKY ROSEN, Nevada
                       Nick Rossi, Staff Director
                 Adrian Arnakis, Deputy Staff Director
                    Jason Van Beek, General Counsel
                 Kim Lipsky, Democratic Staff Director
              Chris Day, Democratic Deputy Staff Director
                      Renae Black, Senior Counsel
                                 ------                                

                 SUBCOMMITTEE ON MANUFACTURING, TRADE, 
                        AND CONSUMER PROTECTION

JERRY MORAN, Kansas, Chairman        RICHARD BLUMENTHAL, Connecticut, 
JOHN THUNE, South Dakota                 Ranking
DEB FISCHER, Nebraska                AMY KLOBUCHAR, Minnesota
DAN SULLIVAN, Alaska                 BRIAN SCHATZ, Hawaii
MARSHA BLACKBURN, Tennessee          EDWARD MARKEY, Massachusetts
SHELLEY MOORE CAPITO, West Virginia  TOM UDALL, New Mexico
MIKE LEE, Utah                       TAMMY BALDWIN, Wisconsin
RON JOHNSON, Wisconsin               KYRSTEN SINEMA, Arizona
TODD YOUNG, Indiana                  JACKY ROSEN, Nevada
                            
                            
                            C O N T E N T S

                              ----------                              
                                                                   Page
Hearing held on December 15, 2020................................     1
Statement of Senator Moran.......................................     1
    Letter dated December 14, 2020 to Hon. Jerry Moran and Hon. 
      Richard Blumenthal from Jennifer Dorning, DPE President....     3
    Letter dated December 14, 2020 to Hon. Jerry Moran from 
      Daniel Newby, President, Ottawa Bus Service Inc............     8
    Letter dated December 15, 2020 to Senator Roger, Senator 
      Jerry Moran, Senator Maria Cantwell and Senator Richard 
      Blumenthal from the Live Events Coalition..................     9
    Prepared statement from IAAPA--The Global Association for the 
      Attractions Industry.......................................    13
    Prepared statement the Recording Academy.....................    15
    Prepared statement from the Business Continuity Coalition....    16
    Prepared statement from the National Association of Theatre 
      Owners.....................................................    20
Statement of Senator Wicker......................................    22
Statement of Senator Blumenthal..................................    27
Statement of Senator Klobuchar...................................    46
Statement of Senator Blackburn...................................    48
Statement of Senator Lee.........................................    51
Statement of Senator Sinema......................................    53
    Letter dated April 9, 2020 from the Endurance Sports 
      Coalition..................................................    54
Statement of Senator Young.......................................    58
Statement of Senator Cantwell....................................    60
Statement of Senator Rosen.......................................    61
Statement of Senator Tester......................................    63

                               Witnesses

David Fay, President and Chief Executive Officer, The Bushnell 
  Center for the Performing Arts.................................    23
    Prepared statement...........................................    25
Adam Hartke, Co-owner--Wave & The Cotillion; Advocacy Committee 
  Co-Chair--National Independent Venue Association (NIVA)........    28
    Prepared statement...........................................    30
Ron Laffitte, President, Patriot Management......................    33
    Prepared statement...........................................    35
Peter J. Pantuso, President and Chief Executive Officer, American 
  Bus Association................................................    37
    Prepared statement...........................................    39
Michael T. Strickland, Chair and Founder, Bandit Lites...........    41
    Prepared statement...........................................    43

 
   EXAMINING THE IMPACT OF COVID-19 ON THE LIVE EVENT ENTERTAINMENT 
                                INDUSTRY

                              ----------                              


                       TUESDAY, DECEMBER 15, 2020

                               U.S. Senate,
Subcommittee on Manufacturing, Trade, and Consumer 
                                        Protection,
        Committee on Commerce, Science, and Transportation,
                                                    Washington, DC.
    The Subcommittee met, pursuant to notice, at 10 a.m. in 
room SR-253, Russell Senate Office Building, Hon. Jerry Moran, 
Chairman of the Subcommittee, presiding.
    Present: Senators Moran, Wicker, Blackburn, Lee, Young, 
Blumenthal, Cantwell, Klobuchar, Sinema, Rosen, and Tester.

            OPENING STATEMENT OF HON. JERRY MORAN, 
                    U.S. SENATOR FROM KANSAS

    Senator Moran. Good morning. As the Chairman of the Senate 
Commerce Subcommittee on Manufacturing, Trade, and Consumer 
Protection, I welcome all of our participants in this hearing 
today. The hearing is entitled ``Examining the Impact of COVID-
19 on the Live Event Entertainment Industry.''
    The Subcommittee will now come to order.
    As covered in this subcommittee's previous hearing on the 
manufacturing community's response to the pandemic, COVID-19 
continues to negatively impact many industries and businesses 
throughout the American economy and another industry, among its 
hardest hit, is the live entertainment sector.
    Due to airborne transmissions of COVID-19, many states and 
localities have implemented bans on large gatherings of people. 
This has placed, obviously, a tremendous strain on the 
entertainment sector which relies on the gathering of large 
groups of people for concerts, live sports, plays, comedy 
shows, movies, and many other forms of entertainment.
    Companies in this sector have been forced to largely cease 
operations during the pandemic, leaving these businesses 
without revenue or alternative means to replace it. Without 
crowds to perform for, entertainers, venues, and downstream 
vendors have been forced to furlough staff they typically 
employ during a concert season. Without stages to light and set 
up, lighting companies and stagehands have been out of work 
since March. Without entertainers and event goers to transport, 
many bus drivers and public transport companies have been 
largely off the road for months. And without concerts and other 
events to facilitate, independent venue operators and owners 
have been without revenue for much of the past year. These are 
just a few examples of ways the live entertainment industry 
sector has been affected this year, which we will hear more 
about from our witnesses today.
    Back in March, Congress passed the CARES Act, which 
included a number of provisions to help employers of all types, 
including live event entertainment businesses, weather the 
pandemic. The Small Business Administration's Paycheck 
Protection Program provided employers funds to continue paying 
their employees and cover some business expenses. Other 
programs meant to help employers and their employees are the 
Main Street Lending Program and the Economic Development 
Administration's Recovery Assistance Grants. For many 
categories of businesses, these programs were ineffective 
tools. These programs under the CARES Act did not adequately 
benefit the live event entertainment sector.
    This is why I and many of my colleagues have introduced and 
sponsored the Save Our Stages Act, which would authorize the 
Small Business Administration to make grants to eligible live 
venue operators, producers, promoters, and talent 
representatives to address the economic impacts of COVID-19. 
This would offer the struggling businesses a lifeline to 
continue operations until they can return to doing what they 
love, entertaining Americans.
    There are a number of other legislative proposals, 
including the RESTART Act that worked to address the needs of 
the live event sector. And I encourage my colleagues to work to 
ensure this industry is supported in the ongoing negotiations 
around a phase four COVID relief package.
    I should also point out that there is a ripple effect on 
the economy when the live entertainment industry is out of 
work. Restaurants, bars, transportation, and many other 
businesses that thrive on live events bringing people to a 
community from surrounding areas are hurting. This means that 
when lights are dark in the local live event venue, the economy 
in that community as a whole is also dark.
    I look forward to hearing from our witness panel today. It 
will provide a variety of different perspectives to this 
important issue. Joining us today is Mr. David Fay, President 
and CEO of The Bushnell Center for the Performing Arts in 
Hartford, Connecticut; Mr. Adam Hartke, owner of The Cotillion 
and Wave in Wichita, Kansas; Mr. Ron Laffitte, President of 
Patriot Management in Los Angeles, California; and Mr. Pete 
Pantuso, President and Chief Executive Officer of the American 
Bus Association from Bradford, Pennsylvania; and Mr. Michael 
Strickland, Owner of the Bandit Lites in Knoxville, Tennessee.
    Finally, a number of organizations representing a multitude 
of entertainment industry interests have provided written 
testimony for the record which describes the hardships that 
their portion of the industry is facing, with recommendations 
for how Congress should act to address these issues. I would 
ask unanimous consent that these letters be submitted into the 
record. Without objection, so ordered.
    [The information referred to follows:]

    
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                                      Live Events Coalition
                                  December 15, 2020, Washington, DC

Senator Roger Wicker,
Chairman,
Senate Commerce Committee.

Senator Jerry Moran,
Chairman,
Senate Commerce Subcommittee on Manufacturing, Trade and Consumer 
Protection.

Senator Maria Cantwell,
Ranking Member,
Senate Commerce Committee.

Senator Richard Blumenthal,
Ranking Member,
Senate Commerce Subcommittee on Manufacturing, Trade and Consumer 
Protection.

Dear Senators:

    On behalf of the nearly 12 million American workers in the Live 
Events industry and the small businesses that employ them, the Live 
Events Coalition applauds you for holding today's important hearing 
entitled: ``Examining the Impact of COVID-19 on the Live Event 
Entertainment Industry.''
    The Live Events industry may be invisible to most as we primarily 
operate behind the scenes, but we touch the lives of every American 
while serving as a critical engine for the U.S. economy. We provide 
event venues, planning, design, catering, audio, video, lighting, 
entertainment, rentals, decor, tenting, transportation, staging, 
ticketing, event security, floral. . .and so much more. We serve 
corporate meetings, trade shows and conferences. We build concerts, 
festivals and fairs. We create weddings, fundraisers and parties. We 
help sporting events, political events and milestone events. Our 
industry employs nearly 12 million American workers and accounts for 
almost $1 trillion in economic impact. Perhaps most notably, our 
industry is part of a much larger co-dependent ecosystem that includes 
Travel and Tourism, Food and Beverage, Arts, and Hospitality.
    Simply put, the impact of COVID-19 on our industry has been nothing 
short of devastating. The COVID-19 pandemic has forced more than 80 
percent of our businesses to lose 60 to 100 percent of their revenues 
for the past 8-plus months. 78 percent of our employees also remain 
furloughed, and few of our business owners have taken a salary since 
February. This difficult reality is expected to persist well into 2021, 
particularly as more rigid restrictions are put into place in states, 
as the virus spikes across the country. The truth is truly sobering: 
Our industry's small businesses, workers and their families will see no 
meaningful end to this ongoing nightmare until months after an 
effective vaccine has been deployed.
    In the early months of mandatory business shutdowns, our business's 
bills were at least partially covered by the initial Paycheck 
Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). 
Unfortunately, these funds have completely run out, and in most cases 
our businesses are now saddled with crippling debt. Retirement savings 
accounts have been depleted, life insurance policies cashed in, and 
many business owners have had to sell their homes in order to keep 
their operations ready to eventually go back to normal.
    Without additional and immediate relief, the vast majority of small 
businesses within the Live Events industry simply will not survive. 
This is why we are grateful of your attention before the Senate 
Commerce Subcommittee, and we welcome the opportunity to provide 
constructive insight into how Congress can help support us during this 
time of need. Our survival absolutely depends on the critical relief 
measures you and your colleagues are considering today. In light of 
this, we are seeking immediate passage of legislation to include 
additional opportunities to access forgivable PPP loans along with 
extended unemployment benefits for our workers, such as PUA.
    Here is a more detailed look at the needed relief measures that 
could help bridge our businesses and workers from now until the end of 
the pandemic:

   FORGIVABLE LOANS: This is key to helping businesses stay 
        afloat until states allow for events to happen again. However, 
        for many of us, the restrictions in the current PPP rules are 
        less than optimum, since the original bill was geared towards 
        bringing back employees that many of us still don't have work 
        for, and not enough assistance for the payment of many of our 
        fixed business costs. It is critical, therefore, that Congress 
        passes this relief measure with a few key improvements to 
        existing PPP standards:

      --  A proportional forgiveness system tailored to the hardest hit 
            businesses

      --  Wider allowable utilization of funds in order to keep 
            businesses operational and out of bankruptcy

      --  Longer utilization period to more reasonably match the 
            business realities of the pandemic

      --  Funding amounts tied to the business's actual operating costs

      --  ``Second Draw'' accessibility, to accommodate businesses who 
            have already received PPP loans, but have exhausted those 
            funds.

   EXTENDED PUA: In order to support our furloughed workforce 
        as well as our businesses owners, we request a reinstatement of 
        the CARES PUA program. This resource should be available to 
        furloughed business owners and workers for a minimum of 4 to 6 
        months, with an option for extension in the event that an 
        effective and widely distributed COVID-19 vaccine has not yet 
        developed by the end of this term, leaving us still effectively 
        shuttered.

   SECOND-DRAW EIDL: Many businesses in our industry can still 
        benefit from an improved EIDL program, with the same 30-year 
        repayment period, but at a 1-2 percent interest rate, an 
        initial payment-and-interest forbearance period tied to a 90-
        day margin following our state's full reopening, eased 
        qualification standards, and loan amounts greater the recent 
        SBA-imposed $150,000 limit.
                                 ______
                                 
    As an addendum, please find a summary of recent findings from the 
Live Events Coalition's December 1 nationwide survey of Events industry 
professionals, which further outlines the clear and urgent need for an 
economic lifeline for our businesses and workers.
    As an additional addendum, please find a sampling of the more than 
550 comments left by our survey's respondents, illustrating in our 
business owner's or employee's own words how they have been uniquely 
impacted.
    We thank you for your leadership in holding this hearing and we 
respectfully ask that you please enact these necessary relief measures 
to give our businesses and proud industry workers a chance to survive. 
Please let us know how we as an organization can help you and the 
Committee bring these critical relief measures to fruition.
    Thank you for your service to our country.
            Sincerely,

--The Founders, Executive Board, and Members of the Live Events 
Coalition

--The Independent State Chapters of the Live Events Coalition, 
including: Arizona Live Events Coalition, California Events Coalition, 
Colorado Event Alliance, Connecticut Event Industry Coalition, DC 
Events Coalition (DC, Maryland, Virginia), Live Events Coalition of 
Florida, Illinois Events Coalition, Kentucky Events Coalition, 
Massachusetts Live Events Coalition, Live Events Coalition of 
Minnesota, Live Events Coalition of Nevada, Live Events Coalition of 
New York and New Jersey, Live Events Industry of Oregon, Texas Live 
Events Coalition, Utah Live Events Industry Association, Washington 
State Wedding and Events Association

--Our Partner Live Events Industry Coalitions in Louisiana, New Mexico, 
Philadelphia, and Tennessee
                                 ______
                                 

     Addendum 1 to Live Events Coalition Letter to Senate Commerce 
                        Subcommittee Leadership

         Live Events Coalition--Recent Business Survey Findings
   On December 1, 2020, Live Events Coalition finalized a nationwide 
 survey of Events industry professionals. The results demonstrate the 
 clear and urgent need for an economic lifeline for our businesses and 
workers, who are amongst the very hardest hit in our country due to the 
 COVID-19 pandemic, and the necessary shutdown of our entire industry.
The survey generated more than 1,400 responses from Event professionals 
across 43 U.S. states. On average, respondents have spent 20+ years in 
      the industry, including both business owners and employees.
   33 percent of industry's professionals have lost 90 to 100 
        percent of their income and revenues since the beginning of the 
        COVID-19 pandemic, and more than 80 percent of businesses have 
        lost more than 60 percent of their revenues.

   Fewer than 8 percent of industry professionals have better 
        than a 40-60 percent loss of income and revenue.

   Most industry businesses will not survive without further 
        Federal aid, with over 57 percent reporting that they will fail 
        within 2 to 4 months without additional relief enacted by 
        Congress. Further, 26 percent say they won't even make it to 2 
        months. An astounding 80 percent will fail within the next 4 to 
        6 months.

   There are nearly 1.1 million events businesses in the U.S, 
        employing an average of 10+ employees each.

   Events businesses have furloughed nearly 80 percent of their 
        workers, totaling more than 9 million Americans, and the 
        majority of these have been out of work since the beginning of 
        the pandemic, with no hope for return until months after the 
        full vaccination of our country.

   More than half of the smallest Events businesses now have no 
        payroll at all, with 100 percent of their employees laid off.

   Of the Events Industry's largest businesses (over 100 
        employees), more than 56 percent have downsized to fewer than 
        20 employees since the start of the pandemic.

   Nearly 60 percent of Events industry workers say they will 
        be unable to remain in the industry and still pay their bills 
        for longer than 1 to 2 months, without an extension of PEUC and 
        a revival of PUA assistance.
                                 ______
                                 

     Addendum 2 to Live Events Coalition Letter to Senate Commerce 
                        Subcommittee Leadership

 A sampling of the more than 550 comments yielded by our recent survey:
``I employ 4 part-time workers which immediately reduced to 1 in March 
and now I am cutting the last one due to lack of work/income. Arizona, 
where I live and have had my business for the past 6 years does not 
provide unemployment compensation that is close to sufficient and 
without the Federal assistance, I will be forced to close my business 
in the next 4 months. Since I also refer a large number of event 
professionals (I'm an event planner) this will affect many others.''
--Sally Arnold, Arizona

``Covid-19 brought my company to a standstill--we were set to have our 
best year in business. Between March 1 and March 15, we had over $400K 
of booked business cancel, and that does not include unbooked business 
or contracts in the ``bid'' process. I had to lay off my staff and cut 
back on everything. I did nothing for 4 or 5 months. Slowly now, our 
clients are trying to do virtual events, at 10 percent of the rate we 
would get paid for live events--it's not enough to survive. I have been 
doing events for 25 years, have had my company for 12 years, and it's 
crushing to see it destroyed at no fault of my own, and crushing to sit 
back and see no support from the Government.''
--Ryan Zynger, California

``I have been in the event industry for 35 years. It's all I have done. 
In October of 2019 I put everything I saved and earned into buying my 
own venue. A 50,000 sq ft building with 3 event spaces. On March 13, 
2020 we were mandated to shut our doors and I see no hope that in the 
near future our doors will be able to be reopened. I don't do catering, 
I have no way to pivot. My venue and my entertainment company are at a 
screeching halt. I am at a 90 percent loss for the year. I won't make 
it past 6 months!''
--Shiran Nicholson, Connecticut

``My business was shut down since March 2020 to date. I've had no 
income, all my clients have cancelled, postponed and rescheduled for 
2021, and at this point they're starting to reschedule and cancel now. 
I've already lost my January, February and March clients. If I don't 
get any help, I'll be closed in two months. My personal funding has 
been stretched to the limit, my bills are piling up and I haven't 
received one cent from the government, I'm assuming it's because I have 
no ``employees.'' I am a real self-employed business and female owned 
company that is trying to remain open.''
--Michelle Rodriguez, Connecticut

``I have been a meeting travel director for 23 years. I have tried to 
find a job locally, but my salary would be 1/3 of what I was making. 
All I'm qualified for in this area of Florida is to work a part-time or 
full-time minimum wage job. I am sinking quickly, and it does not 
appear that my job will be returning until well into next year.''
--Nancy Harris, Florida

``After 20 years in the industry I had finally reached a point that I 
felt was real success. I taken a leap of faith and created my own 
business contracting out my services for design and show planning. In 
March when the shutdown occurred, I was optimistic and have been 
struggling to hold on to everything that I had worked so hard for. At 
first it seemed that within a few months we would all be back to work 
but now here we are 8 months later and no relief is in sight. I am 57 
years old and quickly approaching what should have been my retirement. 
It would be devastating for me to have to begin all over again.''
--Scott Duncan, Georgia

``I have been in business 18 years. We were shut down in mid-March with 
an order from the governor and mayor. Since we were able to re-open, we 
have only hosted 3 meetings of under 10 people and a handful of small 
events with revenue of under $750. Prior to this, our revenue was close 
to $2,000,000 annually. I went from 25 full and part time employees to 
3.5 staff as of this moment. I had to give up the leases on all 15,000 
sq. ft. of my event space along with my office leases. I have tried to 
expand into event rentals with the furniture and decor I now have in 
storage along with some other new lines of business we developed, but 
none of it is generating any new income as restrictions keep coming 
down and COVID-19 cases rise. I am funding the business out of my 
savings at this point but cannot afford to do this indefinitely. With 
the new restrictions shutting us down again on Friday for an indefinite 
period of time, this is just not sustainable.''
--Eva Niewiadomski, Illinois

``I've been in the hospitality/events industry for 13 years. In early 
2020 my company was on target to more than triple our revenue and had 
moved from high end weddings to large scale corporate events. We had a 
monster of an event scheduled for early March in Louisville which took 
my team months to prepare, design, and produce all of the custom 
elements, purchase the tremendous amount of items needed, and contract 
the many other small businesses needed to pull off such a large 
project. ONE DAY before we were to load our trucks, the client decided 
to cancel their event due to COVID. ALL of my other 2020 events have 
cancelled with only 1 postponing to NEXT OCTOBER. I had to reduce my 
team and my 13-year-old business that I gave everything too is barely 
hanging on. Unfortunately no one wants to buy the entire warehouse full 
of brand new event items right now.''
--Rayna Wallen, Kentucky

``After more than 30 years in the exhibits/tradeshow industry I went 
from $82k as an LLC to making $96 a week on unemployment that is about 
to run out. I have been forced to file for bankruptcy, and if not for 
my wife's income we would have lost our house as well.''
--David Falcon, Louisiana

``I am a single mother of 4. They say if you do a job you love then it 
is not really work. The thing is, there is something magical and 
gratifying being a part of a successful show. From marking the concrete 
floors, to pipe and drape, to late night carpet calls, to building and 
detailing what are often ``tricky'' booths, to the final show open and 
seeing the fruition of collaborative work from my brothers and sisters 
is something that another job just cannot fulfill. I have not worked 
since early March 2020. I had to re-file my MA unemployment in July 
2020 and due to the complete halt of work in March, my benefits reduced 
from what would normally be $475/wk down to $191/wk. In addition to 
that, extensions are not available beyond when I will need one. I have 
to tell my children Christmas is canceled this year because Santa is in 
quarantine. Truth is, I barely have enough money to feed my kids and I 
have reduced myself to one meal a day to get by as I cannot afford 
rent, car ins, medical bills, groceries, transportation, prescriptions, 
clothing, utilities, etc. I have maxed out all 7 credit cards from this 
pandemic and now have a credit score of 350 vs the 750 score I had pre 
pandemic. I have worked really hard. Long hours. Physical labor. I am 
proud of all I have put into my life and for the government to leave 
all of us stranded is a slap in the face. I vote. I pay taxes. I abide 
by the law. What does it take for the government to care? I'm 
absolutely disgusted with Congress and the amount of time it is taking 
them to help us maintain our livelihoods until THEY tell us we may 
return to work. Disgraceful and disgusting.''
--Jennifer Whatley, Massachusetts

``I have lost 97 percent of my business, haven't paid myself since 
March, and had to lay off all of my staff. I have received some 
financial help, but that is very close to running out. Without more 
substantial help my business will close this winter, leaving my 
employees without work, and our customers without a vendor.''
--Courtney Latham, Oregon

``We provide live specialty entertainment for corporate events, fairs & 
festivals, conferences, and private events. We had the biggest year on 
record in 2019 with forecasted growth of ≥10 percent in 2020. We 
were hiring and had a team of 5 core staff at the start of 2020. When 
Covid-19 was officially named a pandemic it changed our world entirely. 
All our contracts for the year cancelled within 3 weeks and we were 
forced to go into survival mode almost instantly. Within the next 5 
months I lost my entire team and now it is just me trying to keep hope 
and make it to the other side. Here we are 9 months later. PPP 
assistance in April was a life saver and through the summer we stayed 
optimistic that the worst of the pandemic was behind us. My company 
pivoted to virtual entertainment services, we have taken any 
opportunity for contracted live events available and yet, while I'm 
working 10 hours a day, 50 hours a week trying to survive this 
pandemic-caused economic crisis, we are still not covering our basic 
expenses of rent, utilities, insurance and salary; all of which are 
very modest. In 2019 we paid out $400,000 to contract workers and 
artists, providing quality live event gigs to the talent in Central 
Texas. I feel it is my duty to survive this recession so I can be here 
to offer jobs to the artists again! But in the meantime, we need 
financial capital in order to hang on. We're dangling on the side of a 
cliff. My company has spent through our business savings--I personally 
am quickly going through my individual savings. We need the government 
to step in and provide more forgivable loans and aid to the hardest hit 
sectors. We fight every day to survive this pandemic recession. We ask 
our government and political representatives to fight for us as well.''
--Linsey Lindberg, Texas

``28 years in the industry and we are decimated. For 2020, a 90 percent 
drop in revenues. For 2021, all of Q1 has canceled, as well as 50 
percent of Q2. My office went from 30 full time employees, down to 2. 
Only options currently, to cover expenses and come close to previous 
salary, would be to work a minimum of 2 full time jobs as most places 
currently hiring are paying less than half of my previous salary. I 
need to support a family of 4.''
--Relevent Minucciani, Washington
                                 ______
                                 
Statement of IAAPA, the Global Association for the Attractions Industry
    Chairman Moran and Ranking Member Blumenthal,

    Thank you for exploring the needs of impacted industries. The parks 
and attractions industry has many of the same issues as explored today 
but has several unique concerns outlined below. In particular, we would 
like to thank you and the many other Commerce, Science and 
Transportation Committee members who have cosponsored the RESTART Act, 
which we believe is a critical element to help impacted businesses 
successfully move past the pandemic closures.
    IAAPA is the global association for the attractions industry, 
representing major theme parks, local and destination fixed-site 
attractions, waterparks, family entertainment centers, aerial 
adventures courses, museums, zoos, aquariums, manufacturers and 
suppliers. IAAPA's U.S. members employ over 700,000 people in over 
5,450 businesses with an annual economic impact of $51.6 billion on the 
U.S. economy. The pandemic has been devastating to the industry with 
job loss exceeding 250,000 and revenues down by 60-75 percent, on 
average, in states that have allowed the industry to open. The impact 
has been even more devastating in states such as California, New York, 
Massachusetts and Illinois that have not allowed the parks to open 
since the beginning of the COVID-19 pandemic.
    The CARES Act was a lifeline to businesses that could utilize it, 
but in March, no one realized the length or severity of the pandemic 
and the extent to which it would cripple businesses such as those in 
the attractions industry. Now, nine months later, staring down a second 
wave of COVID-19 limiting travel and uncertainty preventing future 
bookings or planning, many industry businesses will not survive without 
relief to help them bridge this period of uncertainty and get them to 
2021 and beyond without a daunting debt load, which will hamper their 
ability to invest in their businesses and employees. This will not only 
have a negative impact on their businesses but will also negatively 
impact the suppliers to the industry and the local community, which 
benefit by the travel and tourism generated by parks and attractions. 
For every dollar spent in a park, six is spent in the community.
    Closures and lack of revenue is compounded by the significant 
investment in personal protective equipment and services that 
businesses within the industry have made in order to ensure their 
employees and guests are safe from COVID. The industry has spent 
millions of dollars on personal protective equipment and endless hours 
developing safety protocols (see attached industry-developed 
guidelines). These costs have not ended. While equipment is necessary, 
increased staffing to ensure that guests and staff are screened, and 
staff is properly trained is an ongoing cost for the foreseeable 
future. Additionally, IAAPA zoo and aquarium members have ongoing 
animal care costs, including food, medicine and medical supplies, 
diagnostics, environmental testing, life support and other costs 
related to animal care while their gates remain closed or are opened to 
greatly restricted crowd sizes.
    While some industry businesses were allowed to open for some part 
of the year in 46 states, they lost much of their ``high'' season. When 
they did open, they did so with capacity limitations which led to 
substantial revenue losses. Additionally, group events were non-
existent in 2020 and with advance sales for school, corporate, 
convention and sports events for 2021 underway, it appears they will be 
virtually non-existent next year as well.
    Like the live venue and restaurant industries, parks and 
attractions have significant ongoing expenses related to substantial 
real estate holdings, ride and machine maintenance and upkeep, taxes, 
loan maintenance and if open, a certain minimum staffing level 
regardless of the number of patrons. Thus, even when allowed to open at 
mandated capacity levels, parks and attractions were operating at 
levels far lower than necessary to successfully sustain their 
businesses.
    Yet another hidden cost to the parks and attractions industry is 
the loss of experienced individuals that businesses had to lay off or 
terminate. These employees often had years of experience that is 
invaluable to the businesses in which they worked. If they cannot be 
brought back and/or find other positions, this expertise, developed 
over years, will be lost.
    The following assistance is necessary to keep businesses in the 
parks and attractions industry open and healthy moving forward:

        RESTART. Pass the industry-neutral Reviving the Economy 
        Sustainably Towards a Recovery in Twenty-twenty (RESTART) Act 
        (S.3814) introduced by Senators Young (R-IN) and Bennet (D-CO) 
        which provides relief to all severely impacted industries.

        Paycheck Protection Program (PPP). Provide additional funding 
        for PPP extending the program through December 31, 2021 to 
        enable a second draw for eligible businesses:

                Priority should be given to severely impacted 
                businesses such as those required to close or operate 
                at reduced capacity due to COVID-19 related concerns 
                which can show a revenue decline of at least 25 percent 
                in 2020.

                Clarify that seasonal small businesses with fewer than 
                500 employees who work for six months or more are 
                eligible. Seasonal attractions industry businesses 
                often employ as few as 10-20 percent of their total 
                number of employees on a permanent, year-around basis.

                Clarify that small businesses can deduct expenses paid 
                with a forgiven PPP loan from their taxes and will not 
                be taxed on amounts forgiven by the PPP.

        Economic Injury and Disaster Loans (EIDLs). Ensure EIDLs are 
        not capped by the Small Business Administration but available 
        to eligible businesses up to the $2 million allowed.
Liability Protection
    Provide targeted COVID-19 liability protection for attractions 
businesses that are following best practices to protect guests and 
workers against COVID-related illness
Tax Credits
    Enhance the Employee Retention Tax Credit (ERTC) and the Work 
Opportunity Tax Credit (WOTC).

    Provide tax credits for purchase of personal protective equipment 
goods and services.

    Provide investment tax credit for capital equipment purchased.
Animal Care Financial Assistance
    Provide $800 million in Federal support to help the zoological 
community cover the critical ongoing animal care costs including food, 
medical supplies and diagnostic testing.
    Your leadership in ensuring that Congress addresses the needs of 
businesses in these important industries is critical. Like the live 
venue industry, our businesses are an important part of any community 
eco-system, bringing people into the community where they engage in 
activities with other area businesses. These businesses are also an 
important part of the fabric of the community by training young people 
and providing family entertainment. Assistance in the areas listed 
above will enable the industry to remain viable and vibrant elements of 
the communities in which they are located for years to come.
    If we can answer any questions or assist you in your ongoing 
response to the COVID-19 pandemic, please let us know. We thank 
Chairman Moran, Ranking Member Blumenthal and all the Committee members 
for their interest and attention to the pandemic response needed to 
help impacted industries.
                                 ______
                                 
               Written Testimony of the Recording Academy
    Chairman Moran, Ranking Member Blumenthal, and members of the 
Subcommittee:

    The Recording Academy thanks you for holding the December 15 
hearing, ``Examining the Impact of COVID-19 on the Live Event 
Entertainment Industry,'' and welcoming our testimony for inclusion 
into the hearing's record. As the Nation's leading association for 
songwriters, musicians, performers, producers and engineers, we know 
first-hand how important the live event industry is to our Nation's 
economy and to countless small businesses in communities across the 
U.S. Live events are also the backbone of the music industry, and the 
predominant source of income for the vast majority of our 25,000 
members. As the hearing clearly highlighted, the live events industry 
needs Congressional assistance.
    When the Coronavirus first began to spread in March, it was live 
events that became, painfully, among the first industries to shut down. 
Overnight, tours were cancelled, gigs were put on hold, and festivals 
were rescheduled. An $877 billion industry evaporated in the blink of 
an eye. Nearly ten months later, we remain paused and music makers--
along with the performing venues, studios, managers, bookers, catering 
teams, crews, and other small businesses--remain reeling from the 
devastating economic effects of COVID-19. They remain in desperate need 
of comprehensive legislation that will save the economic livelihood of 
the music ecosystem.
    Throughout the pandemic, the Recording Academy has championed a 
number of bipartisan legislative proposals and solutions to protect 
jobs and spark a resumption of economic activity. Many of these ideas 
were represented during the subcommittee's hearing, and we are 
heartened to know that many of the proposals have received widespread 
bipartisan and bicameral support in this Congress. It is encouraging 
that Congressional leaders have recognized the plight of the live event 
industry, and we are optimistic that many of these important changes 
will become law before the end of the year.
    During the hearing, it was gratifying to hear committee members 
speak enthusiastically about the Save our Stages Act (S. 4258)--
critical legislation championed by the Recording Academy and many 
others in the music economy. As witnesses demonstrated, without small 
and independent venues there would be no touring, and without touring 
there would be no live music. Venues and stages make up the backbone of 
communities across the nation, providing direct jobs and opportunities 
for our performing members, and sparking economic activity up and down 
Main Street. The Save our Stages Act must become law.
    The hearing also shed light on the RESTART Act (S. 3814), a 
bipartisan and bicameral bill supported by the Recording Academy, which 
will provide flexible and long-term assistance to many small businesses 
in jeopardy of going out of business. For the music industry, the 
RESTART Act represents a lifeline to countless recording studios, sole 
proprietorships, small record labels, and other small music businesses 
that are vital to the music ecosystem. Short-term and temporary 
measures will not sustain these businesses who continue face an 
uncertain future.
    Together with an expanded and improved Paycheck Protection Program, 
the RESTART Act will ensure that our industry's small businesses and 
sole proprietorships have better access to aid.
    The hearing also brought to focus the pandemic's impacts on the 
workers in the live event industry, who, through no fault of their own, 
find themselves out of work, unable to work, or underworked. From the 
musicians on the stage, to the roadies backstage, to the sound crew in 
front of house, the shutdown of the industry has affected millions of 
workers--many of whom are self-employed or independent contractors. 
Congress set to protect these workers through expanded unemployment in 
the CARES Act, but with the expanded programs set to expire in less 
than two weeks, more protections need to be swiftly passed to ensure 
that American workers in need can continue to receive benefits from the 
Pandemic Unemployment Assistance program. Congress needs to extend the 
PUA program for the duration of the pandemic.
    Additionally, Congress needs to ensure that the PUA program truly 
works for the non-traditional workers in the live event industry, many 
of whom were unintentionally left behind by the CARES Act. These 
workers, who receive multiple sources of income--including a mix of 
1099 and W2 wages--were misclassified and denied access to PUA, 
depressing their weekly benefit amount in all 50 states. Passage of the 
Mixed Earner Pandemic Unemployment Act (S. 4442) is a simple and low-
cost fix to this growing problem. The ``mixed earner'' problem was 
further exacerbated by the expiration of the Federal Pandemic 
Unemployment Compensation program on July 31, 2020, which decimated the 
weekly benefit amount. Congress must act to solve the ``mixed earner'' 
problem and also resume the FPUC program so that the non-traditional 
workers in the live event space can receive an appropriate benefit 
amount for the duration of the industry's shutdown.
    Finally, Congress needs to take steps to ensure that live music can 
resume and thrive post-pandemic by encouraging the creation of new 
sound recordings. The HITS Act (S. 4955), a bipartisan tax proposal, 
would help lift music workers, recording studios, and other businesses 
out of the depths of recession through the production of new music. The 
HITS Act is a low-cost, but important, modification of the tax code 
that would create new opportunities for independent music makers to 
return to the studio, and eventually the stage. Congress must pass the 
HITS Act to ensure that creators can continue to create and go on tour.
    The Recording Academy applauds the committee's commitment to the 
live events industry. As the Coronavirus pandemic continues to impact 
our workers and small businesses, Congress must enact common-sense 
solutions to keep the industry afloat. Without Congressional action, 
the live events industry is at risk. We look forward to working with 
the committee and its members on enacting these important policy 
measures, and returning to the stage in 2021.
                                 ______
                                 
        Prepared Statement of the Business Continuity Coalition
    The Business Continuity Coalition (BCC) represents a broad range of 
business insurance policyholders--large and small--from across the 
American economy, employing more than 60 million workers. The group was 
launched earlier this year to provide the policyholder perspective in 
efforts by policymakers and stakeholders to develop a public/private 
program to limit future economic damage from pandemics that cause 
business interruptions.
    The BCC Steering Committee includes the American Gaming 
Association, American Hotel & Lodging Association, Fox Corporation, 
International Council of Shopping Centers, Live Nation, Marriott 
International, Motion Picture Association, Nareit, National Association 
of Broadcasters, National Association of Manufacturers, National 
Association of Realtors, National Restaurant Association, National 
Retail Federation, The Real Estate Roundtable, Sony Pictures 
Entertainment, ViacomCBS and the Walt Disney Company. A full list of 
member organizations as of this date appears at the end of this 
statement but the coalition continues to expand and the most up-to-date 
list of members can always be found at the BCC website here.
                           Executive Summary
    The magnitude of the COVID-19 pandemic's financial and social 
impacts has exposed significant shortcomings and vulnerabilities in our 
country's preparedness for and resilience to systemic catastrophic 
events of this scale and nature. This includes coverage gaps in 
insurance protection for losses from business interruption occurring 
arguably in the absence of ``physical damage'' to the business 
location. Equally important, coverage gaps for the pandemic risk have 
also been revealed or developed as a result of this year's crisis in 
other lines of insurance, including event cancellation, film & TV 
production package, general liability, and employment practices 
liability insurance. The crisis has also put stress on workers 
compensation insurance.
    Although overshadowed for the moment by other effects of the 
pandemic, if not remedied, these insurance gaps will hinder any 
recovery. This is especially true in the entertainment industry, 
including live performance and broadcast, as well as TV and movie 
productions, and it also impacts business lending (including to 
entertainment), new leasing activity, retail and hospitality sectors. 
Private insurance alone cannot and will not remedy the gaps--at least 
not in the sort-term, and certainly not on the scale of the current 
pandemic--but private insurers need to be part of the solution. What is 
urgently needed is a federally-backstopped availability mechanism 
similar to the highly successful one which Congress put in place for 
terrorism following 9/11--in short, a TRIA-style program for pandemic 
risk.
    The BCC recommends that all of the impacted lines of insurance, 
including event cancellation insurance, need to be supported with both 
a ``make-available'' requirement and a robust Federal backstop for the 
private insurers making the insurance available. During at least a 
five-year economic recovery period (subject to reset if the pandemic 
recurs), the Federal backstop should be provided without charge (as is 
the case with TRIA) to ensure affordability and maximum take-up, and 
the economic resiliency that will foster.
    As recognized by all other major proposals currently being vetted, 
the BCC understands that the business interruption line of insurance 
needs a special rule given the particular gap exposed by the COVID-19 
crisis. That is, the insurance product needs to be both for non-
physical-damage business interruption (NDBI) \1\ and provided on a 
parametric basis, which may be the only way to ensure widespread, rapid 
delivery of assistance to America's businesses in future pandemic 
crises. Liquidity to meet these rapid pay-outs should be guaranteed. 
Insurers can be given an option to satisfy their availability duty by 
supporting a joint underwriting facility which would itself have a 
Federal backstop. Maximum utilization of global reinsurance capacity 
and capital markets should also be encouraged. Long-term program 
continuity is paramount given the time horizon needed for financing 
this risk.
---------------------------------------------------------------------------
    \1\ As a general matter, standard business interruption policies 
include a condition of coverage that suspension of business ``must be 
caused by direct physical loss or damage to property'' at the insured 
premises. While the exact extent of ``direct physical loss'' as it 
relates to COVID-19 is the subject of litigation, any physical impact 
caused by the virus has not typically been sufficient to sustain a 
claim in many jurisdictions.
---------------------------------------------------------------------------
                               Discussion
    The BCC brings together more than two dozen industries and 
companies to develop a plan with policymakers and other stakeholders to 
protect American jobs and to limit future economic damage from 
pandemics and other national emergencies that cause business 
interruptions.
    The BCC thanks the Subcommittee for its leadership and for holding 
today's hearing to address the challenges facing the live entertainment 
industry stemming from the coronavirus pandemic. Contributing to the 
severe economic and employment headwinds we face is the nation-wide 
business insurance crisis that has impacted all aspects of our economy. 
That insurance protection gap has been exacerbated by insurers 
withdrawing event cancellation coverage going forward, leaving the live 
entertainment industry particularly vulnerable.
    Closures and shutdowns caused by COVID-19 have significantly 
impacted the employees and operations of businesses across the country, 
shuttering the live entertainment industry. The BCC, representing more 
than 60 million workers in the entertainment, broadcasting, 
hospitality, retail, communications, restaurant, gaming, and real 
estate industries, encourages policymakers to take urgent steps to 
prepare for future risks. While programs like Save Our Stages and 
RESTART will provide some short-term or immediate relief to impacted 
sectors, the live entertainment industry--and indeed all businesses--
need Congress to address the insurance protection gap to address 
viability concerns going forward.
    Beginning in March 2020 when many sectors of the economy 
experienced dramatic interruptions of demand or production, often but 
not always as a result of government-ordered lockdowns or shelter-in-
place orders, the insurance which is vital to resuming production also 
ceased to be available in many cases.
    When COVID-19 began, insurers and policyholders initially focused 
on non-physical damage business interruption claims and coverage, or 
lack thereof. As COVID-19 has evolved over time, the availability of 
pandemic-related insurance in other lines has greatly diminished for 
policyholders when their policies renew. Pandemic exclusions and 
related clarifications have since become commonplace in event 
cancellation insurance policies, as well as business interruption 
insurance policies and other commercial property and casualty insurance 
lines such as general liability, employment practices liability, and 
specialty lines like production package insurance. While there may have 
been debate regarding whether business interruption insurance did or 
did not cover claims arising from this pandemic, there is no question 
event cancellation insurance was offered with viral infection coverage 
prior to the start of COVID-19. Its withdrawal has particularly 
devastated the live entertainment industry. Like what was experienced 
with terrorism insurance after 9/11, policyholders are increasingly 
finding themselves in the untenantable position of being unable to 
secure pandemic coverage, leaving them exposed to business threatening 
risks.
    The alarming constriction of coverage that commercial policyholders 
are now seeing is unquestionably related to the financial impact of the 
COVID-19 crisis on the property and casualty insurance sector. While 
BCC is not in a position to know directly the exact dimensions of the 
problem (if indeed it is possible to determine at this stage) the 
evidence being offered by longtime industry spokesmen is instructive. 
At the September 29th meeting of the Treasury Department's Federal 
Advisory Committee on Insurance (FACI), an insurance industry expert 
estimated potential 2020 insured losses from COVID-19 across just five 
lines of business--workers compensation, business interruption/
contingency, general liability, mortgage guaranty, and D&O--at between 
$3.5 billion and $146.7 billion (to be sure, an extraordinarily wide 
range), while also acknowledging that there was pandemic risk exposure 
in several other lines (event cancellation, travel, trade credit, PL, 
medical professional liability), even with the patchwork of 
communicable disease policy exclusions which existed before the COVID-
19 outbreak.\2\ The same FACI presentation also noted that insurers had 
begun during 2020 to seek approval from State regulators for ``near-
absolute communicable disease exclusions'' but that ``many of those 
filings'' were ``not being approved'' by State regulators.\3\
---------------------------------------------------------------------------
    \2\ See presentation of Robert P. Hartwig to Federal Advisory 
Committee on Insurance, September 29, 2020, particularly slides 13 and 
17 (accessed November 16, 2020 at https://home.treasury.gov/system/
files/311/FACI-Presentation-Hartwig-9-20.pdf).
    \3\ Hartwig FACI presentation at slide 19.
---------------------------------------------------------------------------
    Imposition of ``near-absolute'' exclusions is no more a workable 
solution for the American economy now than it was after 9/11 when the 
immediate reaction--albeit understandable--of the insurance industry 
also was to seek to exclude terrorism risk from coverage across-the-
board. Simply put, the ability of American businesses to secure 
pandemic risk insurance will be a key factor in America's economic 
recovery and getting our workers back on the job. Collectively we need 
to find a way to maintain and restore coverage in many lines of 
commercial property and casualty insurance. A public-private 
partnership is essential to achieving that objective, just as it was 
after 9/11.
    The BCC is advocating for a public/private insurance program that, 
in the event of a government-declared pandemic health emergency, would 
enable employers to keep payrolls and supply chains intact, help limit 
job losses and furloughs, reduce stress on the financial system, and 
speed economic recovery when government-imposed limitations on 
operations are lifted. Equally important, as with terrorism risk 
insurance, the value of a workable insurance program is not just the 
payment of losses but the confidence that adequate protection gives to 
businesses and their lenders and workers in the meantime--before, and 
whether or not there is, a crisis. As such, the plan must meet the 
needs of a broad range of groups: the businesses and employers directly 
impacted, insurers, lenders and other creditors, policymakers, and 
importantly, taxpayers.
    The BCC policy recommendations outlined below embrace several 
elements of other pandemic-related proposals providing a parametric 
NDBI insurance product. In contrast to many of these proposals, 
however, BCC recommends mandating availability in other lines of 
insurance, including event cancellation. While mandating availability 
in these lines, the BCC proposal would give insurers the option of 
supporting a joint underwriting facility instead of issuing the 
backstopped NDBI on their own paper. An important backstop support for 
insurers' developing workers compensation exposure would also be 
provided.
    In short, the BCC policyholder proposal seeks not only widespread 
availability and affordability of NDBI coverage but also restoration 
and expansion of pandemic coverage in other lines, including event 
cancellation, movie/TV production package insurance, general liability, 
employment practices liability, and other lines that have been hit hard 
by COVID-19.
    A number of successful models can provide guidance in structuring a 
government-backed pandemic-risk reinsurance program. Besides TRIA, 
perhaps two of the most salient models are the Federal Crop Insurance 
Corporation \4\ (when the Federal entity reinsures private crop 
insurers at various quota share levels) and the War Damage Corporation 
(WDC) \5\ developed during World War II (when WDC insured directly but 
required distributing insurers to share in its risk of loss or profit).
---------------------------------------------------------------------------
    \4\ Public Law 96-365 (Sept. 26, 1980); amended by the Federal Crop 
Insurance Reform Act of 1994; and by the Federal Agriculture 
Improvement and Reform Act of 1996 (P.L. 104-127).
    \5\ See Appendix for brief overview of the War Damage Corporation 
and its interface with private insurance industry.
---------------------------------------------------------------------------
                  Recommendations for Program Features
    For all these reasons, the Business Continuity Coalition urges the 
design of any pandemic risk insurance program adhere to the following 
principles:

   1.  Scope: Any Federal backstop should support not only NDBI 
        coverage but also other pandemic impacted lines of insurance, 
        such as event cancellation, workers compensation, production or 
        cast insurance (for film and TV productions), and general and 
        employment practices liability insurance. These lines may need 
        to be supported by a robust backstop even for a recurrence of 
        COVID-19.

   2.  Private Insurer Utilization: Insurers should be included in any 
        pandemic insurance program to involve a number of current 
        industry advantages: (1) determine appropriate premiums to 
        reduce taxpayer outlays; (2) use existing claims-paying 
        infrastructure to pay claims; and (3) leverage insurer 
        expertise in risk mitigation to help businesses understand how 
        they can reduce pandemic risk, comply with imposed 
        requirements, and get their businesses up and running 
        expeditiously.

   3.  Availability: Eligible insurers should be required either to 
        share some portion of the risk in the primary NDBI coverage 
        layer or to support other covered lines of insurance, including 
        event cancellation insurance, as a condition of being permitted 
        to sell any government-supported NDBI coverage. Any pandemic 
        program must properly balance the need to ensure participation 
        with the reality that insurers cannot take on too much 
        uncertain exposure.

   4.  Affordability: Premiums for the program should not aim to cover 
        full program costs. During an initial economic recovery period, 
        the backstop should be without premium, after which the 
        government should charge at least some premium for the risk it 
        bears, but policymakers should not expect premiums to cover the 
        full cost of the program. Premium levels should be set to 
        result in widespread take-up. Cost recovery should be premised 
        on 50+ years.

   5.  Solution Must Meet Needs of Businesses of All Sizes: TRIA should 
        be the template for both availability and backstop, although 
        there are important differences to the pandemic peril that must 
        be reflected in final design. However, the NDBI benefit and the 
        general availability requirements should avoid an arbitrary 
        headcount cliff (e.g., 500 employees), just as the backstop 
        should avoid ``deductibles'' or co-shares tied to volume rather 
        than risk exposure.

   6.  Rapid Claims Payment/Minimum Transaction Costs: Any primary NDBI 
        program should be structured as parametric coverage, which 
        would be triggered by defined external conditions (i.e., 
        national health declaration + state/local action affecting 
        specified business categories) without recourse to usual proof-
        of-loss; although use of proceeds might be audited. A Federal 
        Reserve liquidity facility should be authorized to ensure rapid 
        pay-outs.

   7.  Pooling Alternative for Offer of NDBI Coverage: Insurers that do 
        not wish to underwrite the primary NDBI coverage directly 
        should be given the option to support a joint underwriting 
        facility for that coverage which would also enjoy the Federal 
        backstop support.

   8.  Stop-Loss As Well As Quota-Share Protection: Federal reinsurance 
        protection for both NDBI primary program and for other covered 
        lines, including event cancellation insurance, should be 
        offered, on an optional paid basis, in the form of stop-loss 
        protection in addition to the co-share element, given the 
        potentially extreme cumulative risk of pandemic losses.

   9.  Utilization of Reinsurance and Capital Markets: The Federal 
        program should, like NFIP, be encouraged to foster development 
        and use of private reinsurance markets as well as capital 
        markets' alternative risk-transfer mechanism to further reduce 
        or protect taxpayer exposure.

  10.  Continuity: A Federal pandemic risk insurance program should be 
        administered by a Federal entity housed within the Department 
        of Treasury with continuous existence, such as the WW II-era 
        WDC (later wound-down) or the Federal Crop Insurance 
        Corporation.
                               Conclusion
    The Business Continuity Coalition and its members are grateful for 
the opportunity to submit these comments, and we stand ready to assist 
this Subcommittee and all Members of Congress and the Administration in 
developing a pandemic risk insurance program.
    We urge Congress to move expeditiously to pass bipartisan 
legislation that creates a public-private insurance solution consistent 
with the principles offered above to share the financial risk of losses 
related to pandemics. Due to the nature of the pandemic and the 
increased risk of large gatherings, the live entertainment industry is 
in dire need of a sustainable solution in the form of pandemic risk 
insurance. This urgent task is an essential precondition to the prompt 
recovery of this Nation's economy, and going forward will help protect 
jobs and reduce economic damage from further pandemics.
The Business Continuity Coalition Members
American Gaming Association
American Hotel and Lodging Association
American Institute of Architects
American Land Title Association
American Resort Development Association
Appraisal Institute
Associated General Contractors
Building Owners and Managers Association
CCIM Institute
CRE Finance Council
Fox Corporation
Independent Film & Television Alliance
Institute for Portfolio Alternatives
International Council of Shopping Centers
International Franchise Association
Live Nation
Marriott International
Motion Picture Association
National Apartment Association
National Association of Broadcasters
National Association of Home Builders
National Association of Manufacturers
National Association of Realtors
NAIOP--Commercial Real Estate Development Association
Nareit
National Independent Venue Association
National Restaurant Association
National Multifamily Housing Council
National Retail Federation
NCTA--The Internet & Television Association
Sony Pictures Entertainment
The Real Estate Board of New York
The Real Estate Roundtable
ViacomCBS
The Walt Disney Company
                                 ______
                                 
    Prepared Statement of the National Association of Theatre Owners
    The motion picture exhibition industry has been uniquely devastated 
by the COVID-19 pandemic. Theaters were among the first industries to 
be ordered closed and will be among the last to recover. Cinema 
operators from the largest to the smallest companies have experienced 
dramatic revenue losses while ongoing expenses have continued unabated. 
We urge Congress to act swiftly to pass legislative solutions that will 
provide relief for theater operators of all sizes so that this 
essential American industry is able to recover and thrive once again.
Movie Theater Industry Pre-Pandemic
    Across the United States, movie theater operators ranging from 
publicly-traded circuits to mid-size regional companies to mom-and-pop 
businesses operate a total of 5,800 theaters and 40,000 movie screens. 
Movie theaters serve communities of all sizes and demographics, and are 
an essential home for the world's most creative and ambitious cinematic 
achievements.
    Theaters across the country provide over 153,000 direct jobs, many 
of which are held by first-time job holders, minorities, and people 
with disabilities. Theaters also support millions of jobs across movie 
production and in the cinema supply chain, including concessionaires 
and food suppliers, construction and design, in-theater advertising, 
digital cinema equipment manufacturers, seating manufacturers, sound 
equipment manufacturers, ticketing and point of sale system providers, 
and accessibility equipment manufacturers. Further, theaters boost 
thousands of local jobs that support the day-to-day operations of 
theaters, including electricians, plumbers, HVAC services, pest 
control, security providers, and janitorial services--in addition to 
driving foot traffic to surrounding retail and restaurants.
    Moviegoing remains one of the most popular and desirable out-of-
home activities. Seeing a film on the big screen is one of the most 
affordable entertainment options for families, and draws significant 
attendance: 268 million people in North America went to the movies in 
2019, more than all the people who attended major sporting events and 
theme parks combined--a staggering three-quarters of the population. 
Moviegoing is especially enjoyed by minority audiences: in 2019, 
nonwhite moviegoers made up 45 percent of all tickets sold, 
overindexing on their share of the population. The movie theater 
industry thrived in 2019, with 1.24 billion tickets sold in North 
America and box office grosses of $11.4 billion. 2020 was expected to 
be a similarly successful year, with major titles such as Black Widow, 
Fast & Furious 9, Minions: The Rise of Gru, No Time To Die, and Top 
Gun: Maverick anticipated to gross billions domestically.
Pandemic Impact on Movie Theaters
    The COVID-19 pandemic has had an immediate and unrelenting impact 
on our Nation's movie theaters. As indoor community gathering places, 
theaters were among the first to face declining revenue from consumers 
nervous about reports of a possible spread of COVID-19 into the United 
States. Once the United States officially declared the pandemic, movie 
theaters were among the first businesses to be ordered shut down by 
state and local governments, and tens of thousands of theater employees 
were placed on furlough or laid off.
    Movie theater operators of all sizes and geographic locations have 
faced deep financial distress due to the pandemic. As a result of 
closures, consumer concerns, and lack of new content, the domestic box 
office is down 80.2 percent from 2019. For theaters across the country 
the overall impact is dire: 96 percent of independent and midsize 
theaters have lost over 70 percent in revenue in 2020; public companies 
have faced 65-75 percent declines in revenue. Without relief tailored 
to their circumstances, at least 69 percent of theaters will close 
permanently or be forced into bankruptcy before the spring of 2021.
    Theaters have faced extreme difficulties in the theatrical 
distribution supply and in remaining operationally viable. Movie 
theaters rely heavily on a steady supply of new film product to draw 
audiences, and without this content, theaters simply cannot survive. As 
the pandemic continued, studio suppliers moved their releases to later 
dates in 2021 or removed them from theatrical distribution altogether, 
leaving remaining theaters to play old titles that were available to 
consumers in the home. Additionally, while movie theaters have been 
permitted to reopen on a limited basis in some states and localities, 
they have been subject to drastic capacity reductions and curfews that 
make operations impracticable. Without new films, theaters cannot draw 
necessary audiences; this reduction in the film slate combined with 
capacity and curfew changes means that for many theaters they lose more 
money being opened than being closed. Many theaters in localities that 
otherwise permit them to operate have been forced to remain closed or 
drastically reduce operations. Movie theaters in major markets like New 
York City, Los Angeles, Seattle, and Portland and across New Mexico and 
DC have been shuttered for the duration of the pandemic, and Illinois, 
Michigan, Minnesota, Pennsylvania, Rhode Island, and Washington have 
shut down theaters statewide for the second time.
    With a majority of screens closed, and content in short supply, 
thousands of individuals who work in theaters remain furloughed. 
Although small business theater owners were able to get Paycheck 
Protection Program (PPP) funding, the affiliation rules excluded 
midsized and large companies whose losses have been similarly extreme. 
For the owners who did qualify for PPP, the limited amount of funding 
ran out quickly, and the enduring closure orders made it difficult or 
impossible for many theater owners to spend their funding on payroll 
for a workforce that was otherwise entitled to pandemic unemployment 
insurance due to closures, childcare, or valid health issues. As the 
pandemic stretches into 2021, theaters risk permanently losing these 
valuable employees forever, particularly as unemployment benefits run 
out. Should that happen, theater owners will have to endure further 
costs to hire and train an entire new team.
    If the cinema industry is allowed to fail, the fragile ecosystem of 
suppliers that depend on the cinema channel will fail as well. From 
popcorn and concessions to projectors and reclining seat manufacturers, 
an entire industry exists to support movie theater exhibition. A 
dramatic reduction in the theatrical footprint could decimate many of 
these businesses as well.
    Movie theaters also act as anchor tenants in malls and shopping 
centers. Move theaters are single-purpose buildings, and landlords will 
face significant difficulty securing new tenants in these spaces, 
particularly tenants that will have the same kind of draw as movie 
theaters.
Solutions for Movie Theaters
    Given the dire situation facing motion picture exhibition, NATO 
urges Congress to swiftly enact solutions that could provide relief to 
theaters of all sizes and their employees:

   Pass the Save Our Stages Act (S. 4258/H.R. 7806), as amended 
        to include movie theaters, with an allocation of $15 billion. 
        The grants provided under the SOS framework to small and mid-
        size theater companies, many of which have been unable to 
        access any other relief programs, would be a financial lifeline 
        to these struggling companies.

   Create a new loan program for larger companies that allows 
        borrowers in the hardest-hit industries to obtain lines of 
        credit. The Main Street Lending Program was well-intentioned, 
        but the cumbersome application process, difficult rules, and 
        low lender subscription meant that very few exhibitors were 
        able to access the program.

   Urge the Treasury Department to continue providing liquidity 
        to capital markets so that publicly-traded companies in 
        distress are able to access needed funds. Publicly-traded movie 
        theater companies provide nearly 40 percent of the industry's 
        jobs. Should their firms face an inability to access capital, 
        those jobs could disappear.

   Provide robust unemployment support to furloughed and laid-
        off workers. With hundreds of cinemas still shuttered, 
        thousands of cinema employees remain furloughed. Congress 
        should provide robust assistance to individuals whose jobs have 
        been lost or paused due to the pandemic.

    We appreciate the Subcommittee's consideration of movie theaters, 
our 153,000 employees, and solutions that could assist this essential 
American industry to survive and recover.

    Senator Moran. With that, I will turn to the Ranking Member 
who will join us in about five minutes. I also understand the 
Chairman of the Full Committee, Senator Wicker, would like to 
have opening remarks as well. Senator Wicker.

                STATEMENT OF HON. ROGER WICKER, 
                 U.S. SENATOR FROM MISSISSIPPI

    Senator Wicker. Thank you very much. I do appreciate your 
leadership on this important issue. The Senate Commerce 
Committee has taken many opportunities this year to examine the 
impact of the COVID-19 pandemic on Americans' lives and our 
economy. At the full committee level and in our various 
subcommittees, we have heard about the unique hardships faced 
by thousands of middle class, hardworking Americans in the 
manufacturing industry, the transportation sector, and 
consumers who are most vulnerable to scams.
    Today we will hear from representatives of the live event 
entertainment industry, a sector that has been hit particularly 
hard this year. Because the coronavirus spreads so easily among 
large crowds in confined spaces, Americans have essentially had 
to give up attending live performances such as concerts and 
theater productions. This full shutdown of live events has been 
devastating for performing artists and for the venues that host 
their shows. But the live event entertainment industry also 
supports an entire ecosystem of businesses, including lighting 
technicians, food vendors, transportation providers, many 
[inaudible] businesses themselves and many more just average 
American workers.
    Live events are part of the fabric of American life. The 
ability of people to travel across the country and join 
together to experience the great performances has been joy for 
many Americans. Live music in particular is of great importance 
to me. After all, the State of Mississippi is known around the 
world as the birthplace of America's music. Before the pandemic 
began, I was fortunate to see Garth Brooks perform when he was 
honored with the Library of Congress' Gershwin Prize. No doubt 
Garth Brooks and other stars have been financially successful 
enough to weather the economic shutdown caused by the pandemic. 
That is not the point of this hearing today.
    Our concern today is about the average men and women behind 
the lights, food trucks, and tour buses who support their 
families by bringing the arts and cultural experiences to so 
many. It is my sincere hope that when I see a performance like 
the one I saw with Garth Brooks again, companies, large and 
small, and the thousands and thousands of hardworking Americans 
that make up the live event entertainment industry will have 
received the support they need to stay in business.
    Thank you very much, Chairman Moran. This is an important 
hearing, and I look forward to hearing from the witnesses.
    Senator Moran. Mr. Chairman, thank you for joining us. And 
it is through your encouragement that we are able to have this 
hearing. Thank you for highlighting this issue for this 
subcommittee and for the U.S. Senate.
    Let me begin then with our testimony. We will begin with 
Mr. Fay, followed by Mr. Hartke, followed by Mr. Laffitte, 
followed by Mr. Pantuso, and followed by Mr. Strickland. I now 
recognize Mr. David Fay, President and CEO of The Bushnell 
Center for the Performing Arts in Hartford, Connecticut.

                    STATEMENT OF DAVID FAY,

             PRESIDENT AND CHIEF EXECUTIVE OFFICER,

          THE BUSHNELL CENTER FOR THE PERFORMING ARTS

    Mr. Fay. Chairman Moran, thank you. Chairman Wicker. My 
Senator, Blumenthal, I am sure will be here momentarily.
    Senator Moran. Would you prefer, Mr. Fay, that we wait till 
Senator Blumenthal arrives and we should go to the next 
witness, if you want to make sure that Senator Blumenthal is 
here when you testify?
    Mr. Fay. That is up to you. He and I have talked about this 
many times.
    Senator Moran. I am sure he is very familiar. Please 
proceed.
    Mr. Fay. OK. Thank you.
    I am David Fay, President of The Bushnell Center for the 
Performing Arts in Hartford, Connecticut.
    I feel like I am in a pandemic-induced time warp. Our 
downtown, like so many, has suddenly become a ghost town, all 
too similar to those of the 1960s and 1970s that were decimated 
by the explosive growth of suburban communities. The hard work 
to revitalize abandoned city centers like Hartford has been 
driven in no small part by the substantial public and private 
investment in restoring and building new performing arts venues 
that have become magnets for attracting people back to our 
downtowns. This spawned the development of restaurants, bars, 
clubs, and other venues creating a vitality that has led to 
residential and commercial development, all of which has 
brought new economic strength and restored civic pride.
    It has also led to the creation of an unprecedented touring 
circuit supporting tens of thousands of performing artists, 
entertainers, and shows. An industry that once was centered in 
a few major cities is now a systemic part of a uniquely 
American artistic mosaic that stretches literally from sea to 
shining sea. This vibrant national industry has provided an 
essential economic and cultural anchor for communities all 
across our country, that is, until March when the music 
stopped.
    Today we face an existential threat, a threat not only to 
our industry but to the businesses and the city centers, large 
and small, that have come to depend on us. The CARES Act was a 
step but it was scaled to cover a much shorter period of 
closure than our industry continues to face. We simply cannot 
reopen our venues nor restart our industry until the virus is 
subdued, and unfortunately, that does not appear likely until 
next fall at the earliest.
    Our industry is built on venues from the smallest club 
where new talent is discovered and nurtured to the playhouses 
and regional theaters where local directors, actors, designers, 
stagehands, musicians, writers, and more learn and develop 
their craft; to the Broadway theaters and producers who look at 
those venues and look to them for new talent and to find half 
of all the new shows they open each year.
    It is also built on performing art centers like The 
Bushnell. We are part of a delicately balanced live 
entertainment ecosystem. We depend on it to develop the 
extraordinary talent and shows that grace our stages, inspiring 
our audiences, and uplifting the spirit of our communities. 
Without your help, this ecosystem is in grave danger of 
collapsing and taking with it the pulse of our city centers.
    Yet, this is also about the heart and soul of our country. 
Even after the virus is gone, we face a long road of healing 
and recovery. The Irish playwright Sean O'Casey once said, 
``All the world's a stage and most of us are desperately 
unrehearsed.'' We live in a time when emotional intelligence is 
being outstripped by artificial intelligence. Increasingly, we 
look to Alexa for information and to social media for personal 
validation rather than pausing to look at ourselves and reflect 
on what it means to walk in someone else's shoes. Music and 
theater are a lens through which we see ourselves, our society, 
and our world. It is an avenue to explore the miracle that is 
the Declaration of Independence, to examine the roots and 
repercussions of slavery, and to try to make sense out of the 
often confusing evolution of our great American society.
    It has been said that everyone dies twice: once when we 
stop breathing and then again when our name is spoken for the 
last time. We need your help to ensure that our venues and our 
industry will survive this pandemic so that the voices of our 
great American creative community will have the platform from 
which to sing to us, to challenge and inspire us to be our best 
selves so that when our names are spoken for the last time, it 
will be to honor the contribution we made to our neighbor, our 
country, and to our world.
    Thank you.
    [The prepared statement of Mr. Fay follows:]

Prepared Statement of David Fay, President and CEO, The Bushnell Center 
                        for the Performing Arts
    Thank you, Chairman Moran and Ranking Member Blumenthal, for 
inviting me to testify today on behalf of the live performing arts and 
events industry. I am [David Fay] the President of The Bushnell Center 
for the Performing Arts in Hartford, Connecticut. Our downtown, like so 
many, has become a literal ghost-town, not too dissimilar from those of 
the 60s and 70s that were decimated by the explosive growth of suburban 
communities. The arduous work to revitalize these abandoned city 
centers over the past forty years has been driven in part by private 
investment in restored and newly built performance venues, spurred by 
an array of federal, state, and local tax incentives and great civic 
pride. This, in turn, has spawned the development of restaurants, bars, 
clubs and other venues creating a vitality that has led to new 
residential and retail development, adding economic strength to entire 
regions who have successfully established their own unique cultural 
identities around these revitalized centers.
    It has also led to the creation of an unprecedented touring circuit 
for regional and national performing artists, entertainers and shows. 
An industry that was once centered in a few major cities is now a 
systemic part of a uniquely American artistic mosaic that stretches 
literally from sea to shining sea. This vibrant national industry has 
provided an essential economic and cultural anchor for communities all 
across our country, but today this industry is facing an existential 
threat. A threat not only to the industry, but to the businesses and 
city centers, large and small, that have come to depend on it. The 
Cares Act was a critical step, but it was scaled to cover a much 
shorter period of closure than our industry continues to face. We 
cannot reopen our venues nor restart our industry until the virus is 
substantially subdued, and I do not expect that to occur until, at 
least, the fall of this coming year--hopefully!
    Our industry is built on live performance venues from the smallest 
club where new talent is discovered and nurtured; to the playhouses and 
regional theatres where local directors, actors, designers, stagehands, 
musicians, writers and more, learn and develop their craft; to the 
Broadway theatres and producers who look to these venues for new 
talent, and to find half of all the new shows they open each year; and 
to the performing arts centers, like The Bushnell and those much 
larger, who are a part of this delicately balanced ecosystem and who 
depend on it to develop the extraordinary talent and shows that grace 
our stages, inspire our audiences, and uplift the spirit of our 
communities. Without your help, this ecosystem is in grave danger of 
collapsing and taking with it the pulse of our city centers.
    It is also about the heart and soul of our country. Even after the 
virus is gone from our shores, we face a long road of healing and 
recovery. The Irish playwright, Sean O'Casey, said, ``All the world's a 
stage and most of us are desperately unrehearsed.'' I submit to you 
that it is in our arts and culture that we find the greatest 
opportunity to explore what it means to be a human being. We live at a 
time when emotional intelligence is being outstripped by Artificial 
Intelligence. Increasingly we look to Alexa and Siri for information, 
and to social media for personal validation and guidance, rather than 
pausing a moment to look at ourselves and reflect on what it means to 
walk in someone else's shoes. The arts are a lens through which we 
examine ourselves, our society and our world. It is an avenue to 
explore the inspiration of the Declaration of Independence, the roots 
and repercussions of slavery, and the often-confusing evolution of our 
great American society.
    It has been said the everyone dies twice. Once when we stop 
breathing, and a second time when our name is spoken for the last time. 
We need your help to ensure that the arts, our venues, and our industry 
will survive this pandemic so that the voices of our great American 
creative community will have the platform from which to speak to us, to 
challenge us and to inspire us to be our best self--so that when our 
names are spoken for the last time, it will be to honor the 
contribution we've made to our fellow man.
                                 ______
                                 
NIVA: National Independent Venue Association
Fact Sheet and Policy Ask Update--November 9, 2020

   NIVA includes more than 2,900 independent live entertainment 
        venues and promoters from all 50 states and Washington, D.C., 
        banding together to fight for survival.

   Due to the national routing of most tours, our industry will 
        not recover until the entire country is open at 100 percent 
        capacity. NIVA members need assistance in order to survive 
        until that day.

   According to a survey of NIVA members, 90 percent of 
        independent venues report they will close permanently in a few 
        months without Federal funding. Current PPP funding will not 
        solve the crisis.

   Pollstar estimates a $9 billion loss in ticket sales alone--
        not counting food and beverage revenue -if venues remain closed 
        through 2020.

   Live events provide 75 percent of all artists' income.

   For every $1 spent on a ticket at small venues, a total of 
        $12 in economic activity is generated within communities on 
        restaurants, hotels, taxis, and retail establishments.

   The estimated direct annual economic impact venues bring to 
        local communities is nearly $10 billion.

   NIVA members are among the hardest hit. While nearly 90 
        percent of U.S. businesses have reopened in some capacity, 
        independent venues remain shuttered.
The Broadway League
Touring Broadway Facts: April 2020

   In 2019, Broadway shows performed in over 240 cities across 
        North America and Canada welcoming over 32 million patrons. 
        Broadway theatre had an economic impact of approximately $20 
        billion in the US, fueling the economies of all cities it 
        visits including local restaurants, hotels, shops, 
        transportation, and vendors.

   Broadway tours garnered 18.5 million admissions in the 2018-
        19 season.

   Broadway tours grossed $1.6 billion in the 2018-19 season.

   Touring Broadway contributes an estimated cumulative $5.14 
        billion to the metropolitan areas that host shows.

   On average, Broadway tours generate an economic impact of 
        3.28 times the gross ticket sales to a local metropolitan 
        area's economy.

   Tens of thousands of performers, crew members, musicians, 
        artisans, vendor shop workers and other workers in the live 
        entertainment industry are unemployed and will remain so until 
        the theatre industry re-opens.
Americans for the Arts
COVID-19's Impact on The Arts Research & Tracking Update: December 7, 
        2020
1.  Impact on Nonprofit Arts and Cultural Sector
    Nationally, financial losses to nonprofit arts and cultural 
organizations are an estimated $14.6 billion, to date. 99 percent of 
producing and presenting organizations have cancelled events--a loss of 
481 million admissions and $15.2 billion in audience spending at local 
businesses (e.g., restaurants, lodging, retail, parking). The total 
economic impact of organizational and audience-spending losses is $5.04 
billion in lost government revenue and 867,000 jobs no longer being 
supported. Findings are based on 19,900 survey responses. (Survey. 
Dashboard.)

   35 percent laid off or furloughed staff.

   63 percent make their cultural product available online or 
        through social media (67 percent of these organizations expect 
        to continue their virtual presence post-pandemic).

   10 percent are ``not confident'' that they will survive the 
        pandemic (a potential loss of 12,000 organizations).

   41 percent of nonprofit arts organizations are currently 
        open. 59 percent of organizations remain closed.

    3 Open: 12 percent have remained open throughout. 29 percent have 
            since re-opened.

    3 Closed: 20 percent have a target date for re-opening. 39 percent 
            have no target date for re-opening.

   Top 4 Barriers to Reopening: (1) customers unlikely to 
        attend, (2) government restrictions/guidelines, (3) staff/board 
        do not feel it is yet safe, and (4) impractical to produce art 
        product in current environment.
2.  Impact on Artist/Creative Workers
    Artists/creatives are among the most severely affected workers by 
the pandemic. 63 percent have become fully unemployed. They expect to 
lose an average of $22,000 each in creativity-based income in 2020 
($50.6 billion, nationally). Findings are based on 30,000 survey 
responses. (Survey.Dashboard)

   95 percent report loss of income.

   79 percent experienced a decrease in creative work that 
        generated income (62 percent ``drastic decrease'').

   67 percent are unable to access the supplies, resources, 
        spaces, or people necessary for creative work.

   78 percent have no post-pandemic financial recovery plan.

   Black, Indigenous, artists of color (BIPOC) have higher 
        rates of unemployment than white artists due to the pandemic 
        (69 percent vs. 60 percent) and expect to lose a larger 
        percentage of their 2020 income (61 percent vs. 56 percent).

   Top 3 Needs for Artists: unemployment insurance, food/
        housing assistance, forgivable business loans.


    Senator Moran. Mr. Fay, thank you. Very well spoken.
    In my isolation in my basement on the weekends, the 
Smithsonian channel has been doing Aerial America and recently 
focused on Hartford, Connecticut. Assuming I can get your 
Senator to invite me to Hartford, I would be glad to come see 
one of your performances as soon as that is possible.
    Senator Blumenthal. You are invited, Mr. Chairman.
    Senator Moran. Thank you, Mr. Ranking Member.
    Let me see. Senator Blumenthal, would you like to--Mr. Fay 
was our first witness. Would you like to follow him?

             STATEMENT OF HON. RICHARD BLUMENTHAL, 
                 U.S. SENATOR FROM CONNECTICUT

    Senator Blumenthal. I would be delighted.
    And first, thank you to David Fay, a hero of many of us who 
revere Connecticut's stages and venues.
    And thank you to you, Mr. Chairman, for convening this 
hearing. Senator Klobuchar is here. She has been a leading 
cosponsor of the Save Our Stages Act as she has been on so many 
efforts to aid small business.
    I want to thank all of the participants who are here today 
on this really critically important legislation. Our cultural 
institutions are really the lifeblood of our democracy. They 
distinguish us as a democracy, as a country. They are examples 
of our cultural heritage and treasure, and we ignore their 
needs at our grave peril.
    I am so glad to have heard Mr. Fay's very eloquent and 
powerful remarks, and I am going to take the transcript with me 
all around Connecticut and to my colleagues. Over the past 
months, in fact, I have heard from theaters and stages across 
Connecticut, as well as the country, who are facing life and 
death decisions and struggling to keep the lights on, 
literally.
    In September, I visited the Palace Theater, a 1,600 
performing arts institution, that has been a cultural center 
for Stanford, my hometown, for nearly a century. In normal 
times, the Palace Theater would be hosting the Nutcracker 
ballet to a sold-out audience, and now like much of our lives, 
the ballet is broadcast online.
    In Fairfield, the Fairfield Theater Company turned 
initially to live stream shows. They have recently reopened for 
the first time since March, but with barriers between the stage 
and the audience, literally physical barriers that severely 
reduce capacity to accommodate distancing. This kind of limited 
performance is not sustainable. I have been to The Bushnell, 
Mr. Fay's great institution, the Warner, the Schubert, as well 
as Long Wharf in New Haven, and I have seen for myself the 
limits that have been applied.
    I think we need, for the sake of the employees of these 
great institutions, for the sake of the economic institutions 
that depend on them, whether they are small businesses like 
retailers or restaurants that depend on people coming 
downtown--they are great sources of economic driving impetus as 
well as cultural heritage.
    I am proud to be a cosponsor of the Save Our Stages Act, 
which has been introduced by Senator Klobuchar. This 
legislation would authorize grants for theaters like The 
Bushnell to help cover payroll and operating costs, including 
personal protective equipment, and as well, the RESTART Act, 
which is so important also to small businesses. We are now 
approaching a critical point when we must save our stages and 
our small businesses that are hanging by a thread. For the sake 
of the businesses in their proximity who depend on them whether 
they are places to eat or venues to shop, for the sake of the 
employees who work there, the actors, as well as the stagehands 
and the lighting assistants, for the sake of our cultural 
heritage and the great treasures of enjoyment, for the sake of 
our families that come there to be together and friends and 
neighbors who regard them as social centers, as well as 
artistic gems, we should pass this measure. And I am very 
grateful to all of our witnesses today for providing the 
intellectual ammunition that we will need to convince our 
colleagues to include this step in the compromised rescue 
package now under negotiation. It is in that package now and 
hopefully it will remain there.
    And, Mr. Chairman, thank you for bringing us together.
    Senator Moran. Senator Blumenthal, thank you very much.
    Our second witness is Mr. Adam Hartke. He is the Owner of 
the Cotillion and Wave in Wichita, Kansas. Mr. Hartke, fellow 
Kansan, welcome to our subcommittee hearing, and I look forward 
to your testimony.

           STATEMENT OF ADAM HARTKE, CO-OWNER--WAVE &

          THE COTILLION; ADVOCACY COMMITTEE CO-CHAIR--

         NATIONAL INDEPENDENT VENUE ASSOCIATION (NIVA)

    Mr. Hartke. Thank you. Good morning, Chairman Moran and 
Ranking Member Blumenthal and distinguished members of this 
Committee. Thank you for inviting me to testify.
    We are here because we urgently need your help. My wife and 
I are small business people. We co-own two live music venues in 
Wichita, Kansas, Wave and Cotillion. I also serve as advocacy 
committee Co-Chair for the National Independent Venue 
Association, a coalition of nearly 3,000 independent music 
venues and promoters in all 50 states and D.C.
    My early aspirations came from stories of my grandparents 
working shows at The Cotillion in the 1960s. My grandfather 
helped manage the facility and my grandmother worked the box 
office.
    After attending Kansas University, I took a job as a 
stagehand with IATSE Local 190. I could not afford a car, so I 
would catch rides with the union business agent who would 
always make sure I could get to work.
    In the following decade, I became operations and promotions 
director at the Orpheum Theater and later as operations 
director at Wichita Festivals, producer of River Fest. There I 
shared a common experience with my father who helped set up the 
infrastructure of the first River Fest in 1970 in his role as a 
laborer with the parks department.
    In 2018, I became Co-Owner of The Cotillion where my 
grandparents had worked 60 years ago. My mother still has 
memories of babysitting her four younger siblings on nights my 
grandparents worked shows. Becoming a co-owner of The Cotillion 
was the realization of not only my dream but it seemed to be 
the realization of the dreams of numerous generations of those 
within my family.
    In 2018, I realized another dream: to design and build a 
large outdoor venue. This idea started with a drawing I did on 
graph paper, and the next year Wave was built and opened with 
my wife Jessie and me at the helm of its operations.
    In 2019, business blossomed. We pushed more events through 
The Cotillion, and Wave quickly became a favorite destination 
for concert goers. Both venues drove tourism and our local 
economy, drawing visitors from all 50 states. By the end of 
2019, we were projecting 2020 to be our best year on record. In 
preparation for the new year, we made large capital investments 
in both venues. The beginning of 2020 showed increased 
revenues. Then on March 13, in response to the COVID-19 
pandemic, our businesses were mandated closed. Operations 
ceased. We scrambled to understand the impact this would have 
on our industry and our community as a whole.
    Our employees are our family, many of whom I worked with in 
IATSE. We eat together, sweat together, bleed together, smile 
together, and cry together. They were our first concern, and we 
quickly created a plan to pay our core staff crisis pay while 
shuttered. We then assessed hard costs. ``Gutted'' is the only 
word that truly reflects how we felt in this moment.
    We received PPP assistance, and the funds were used as 
originally stipulated with 75 percent going to payroll. These 
funds ran out in June, and since then, most of our employees 
have been furloughed or laid off. The amount of PPP, 2.5 times 
payroll, was not sufficient for an industry with 100 percent of 
its core bills, 95-plus percent revenue loss, and we will be 
fully shuttered for 18 months. With PPP, we were able to pay 
about 8 weeks of payroll and about half a month of core bills.
    We also received EIDL loans. Once again, the amount of 
these loans were insufficient, and within 3 months, the funds 
were depleted. This is now a debt we have to pay off for the 
next 30 years.
    Many of us have personal guarantees on our businesses. 
Without help, we could lose our homes. Our children will not be 
provided for, and everything we have worked for will vanish. A 
survey of NIVA members shows that 90 percent of mom and pop 
venues will go under without assistance. These are the same 
venues that a 2019 study showed generate $12 of economic 
activity for every dollar spent on a concert ticket at a small 
venue.
    Unlike many industries, we rely on a national reopening 
before we can resume operations, as the artists have to tour 
across the country. In other words, we have no inventory until 
artists begin to tour again. These are the same artists that 
recently sent Congress a letter on NIVA's behalf with over 600 
artists' signatures supporting our request for help. To date, 
we have had more 2.1 million e-mails sent to Congress from our 
fans pleading to save our stages.
    We are asking Congress to pass the Save Our Stages Act and 
an extension of PUA and FPUC as part of the next COVID relief 
bill this week. This is what will save us. Time is of the 
essence. After 9 months, venues are going under at a quickening 
pace. We desperately need help now.
    On December 7 of 2020, The Cotillion celebrated its 60th 
year of continued operation while our historic venue sat 
shuttered. Our biggest fear is that we will have to close our 
doors forever and the institutions, for which we have 
sacrificed so much, will be destroyed. We are sitting before 
you pleading with Congress to help those like us. Please do not 
let the music die. Please save our stages so our small family 
business can survive and maybe some day my 7-year-old son Henry 
will take over and the music will be passed on for generations 
to come.
    We thank Senator Cornyn, Senator Klobuchar, Senator Moran, 
Senator Blumenthal, and other committee members for their 
support on the Save Our Stages Act and our industry as a whole. 
Thank you.
    [The prepared statement of Mr. Hartke follows:]

  Prepared Statement of Adam Hartke, Co-owner--Wave & The Cotillion; 
  Advocacy Committee Co-Chair--National Independent Venue Association 
                                 (NIVA)
    Good morning Chairman Moran, Ranking Member Blumenthal, and 
distinguished members of this committee. Thank you for inviting me to 
testify. My wife and I are small business people who co-own two live 
music venues in Wichita, Kansas, Wave and The Cotillion. I also serve 
as advocacy committee Co-Chair for the National Independent Venue 
Association (NIVA), a coalition of nearly 3,000 independent music 
venues and promoters in all 50 states and DC that formed as a response 
to the pandemic. My career in the live music industry began 20 years 
ago, as a student at Kansas University (KU) and a member of the 
promotions staff at the student run radio station KJHK, hanging 
posters, working merchandise tables at shows, and helping bands carry 
gear. My early aspirations came from hearing stories of my grandparents 
working shows at The Cotillion Ballroom in Wichita in the 1960s. My 
grandfather helped manage the facility, and my grandmother worked the 
box office.
    My uncle, who worked on the artist management and label side of the 
music industry for 45 years, also captured my attention as a child and 
seeded my future career. In the years following my time at KU, I moved 
back to Wichita with the goal of creating a thriving live music 
industry in my hometown. At that time there was little opportunity for 
a kid without resources and capital. I found myself doing small DIY 
shows, sleeping in a makeshift recording studio I had set up in an old 
musty office space I was renting, and cooking ramen on a space heater. 
Luckily, I found support through my colleagues and friends in the 
industry and landed a job with IATSE local 190 working load ins/outs, 
and jumping at every chance offered when the phone rang. I was broke 
and couldn't afford a car, so I would catch a ride to the venue with 
the Union Business Agent, who took a liking to me and would always make 
sure I could get to work. Most of my friends and family told me to 
forget about doing shows and just go get a ``real job.'' But I felt I 
was making progress, even though it seemed slow to those watching from 
the sidelines.
    The following decade I continued to work diligently. I found myself 
a job as operations & promotions director at the Wichita Orpheum 
Theater, and later as operations director at Wichita Festivals Inc, 
which produces the Wichita River Festival. At Wichita Festivals I 
shared a common experience with my father, who helped set up the 
infrastructure of the very first Wichita Riverfest in 1970 through his 
job as a laborer within the parks department. Live music has always 
been an integral part of our family dynamic. From my parents traveling 
to the Denver Pop Festival in 1969 on their honeymoon to see Jimi 
Hendrix, Creedence Clearwater Revival, and Frank Zappa, to the hundreds 
of shows they took me to as a child. Some of my earliest memories stem 
from the joy I felt when attending shows with my parents. And then, in 
2018, I became a co-owner of The Cotillion, where my grandparents had 
worked nearly 60 years ago. My mother still has memories of babysitting 
her 4 younger siblings on nights my grandparents had to work shows. 
Becoming a co-owner of the Cotillion was the realization of not only my 
dream, but it seemed to be the realization of the dreams of numerous 
generations of those within my family.
    In 2018, I also realized another dream of mine, to design and build 
a large outdoor venue in downtown Wichita. This idea started with a 
drawing I did on graph paper, and the next year Wave was built and 
opened with my wife Jessie and me at the helm of its operations.
    In 2019, both businesses blossomed. We pushed more events through 
The Cotillion than previous years and Wave quickly became a favorite 
destination for concert goers from all over the region. Both venues 
brought visitors from all 50 states, increasing tourism in Kansas and 
driving our local economy. We also expanded the cultural offerings 
within Wichita, taking big risks on shows that typically would not play 
our market. While these shows were not always financially successful, 
they had a huge impact on the overall morale of our city. We found we 
were in line with the Chicago Loop study that shows for every $1 spent 
on a concert ticket at a small venue, $12 of economic activity is 
generated for local businesses.
    By the end of 2019, we were projecting 2020 to be our best year on 
record, and our community was set to reap the benefits. We made 
facility improvements at The Cotillion to make the experience more 
enjoyable for artists as well as the customers. At Wave, we built an 
upper deck that would expand the capacity of our outdoor space, create 
a unique show experience, and further increase the economic benefit of 
our venue to Kansas.
    The beginning of 2020 was going well. Revenues were up at both 
venues. Our facility improvements were completed, having invested a lot 
of capital in preparation for a very busy year. Then, on March 13, in 
response to the COVID-19 pandemic, our venues were mandated closed by 
Sedgwick County. All operations ceased as we scrambled to understand 
the impact this would have on our industry.
    Our employees are our family. Many of whom I worked with in IATSE 
or during my DIY promotion days. We eat together, sweat together, bleed 
together, smile together, and cry together. The first concern I had was 
what we could do to help our employees through this if it lasts. We 
quickly created a plan to pay our core employees crisis pay while we 
were shuttered. I then looked at the hard costs of utilities, rent/
mortgage, insurance, licensing, and all the other expenses we would 
still be responsible for paying. Gutted is the only word I can think of 
that truly reflects the feeling my wife Jessie and I had when 
projecting our finances through 2020. Not only would the business' 
survival rely on furloughing or laying off our employees, but all of 
our reserves and liquidity would completely dry up within 6-9 months. 
We quickly realized, much to our horror, that without help, we would 
not make it through this crisis. Our dreams were shattering in front of 
our eyes. Through no fault of our own, we had to tell our employees 
that we could not continue to pay them. We faced the looming disaster 
of our personal guarantees on the business being called out, which in 
turn made it entirely possible that we would lose our home, our son 
would not have a roof over his head, and we would lose everything.
    Both of our venues received PPP assistance, but that ran out in 
early June; the funds were used as intended with 75 percent going to 
payroll. Since then, most of our employees have been furloughed or laid 
off, and we've done our best to help them navigate the pandemic 
unemployment assistance (PUA) program. Many of our employees have been 
with us for many years, or decades, and have been trained to a point 
where they are some of the best in the industry. In smaller markets, 
like Wichita, one of our biggest fears is that we will lose these 
highly trained professionals to other industries, or even worse to 
other communities. The restrictions on PPP also made it impossible to 
pay our bills in full, and the fact that we are fully shuttered with no 
work for our employees to do, further complicated our situation. 
Lastly, the amount of PPP, 2.5X payroll, wasn't sufficient for an 
industry that has 95 percent+ revenue loss, and has been fully 
shuttered now for nearly 9 months, with likely another 9 months of 
being fully shuttered ahead of us. With PPP we were able to pay 8 weeks 
of payroll, and about half of a month of core bills.
    Beyond PPP, our venues received assistance from EIDL loans. Once 
again the amount of the EIDL loans did not cover the extent of impact 
this crisis has had on our industry and within 3 months these funds 
were depleted. This is now a debt we will be paying off for the next 30 
years. We are expecting to be closed for a total of at least 18 months, 
with no revenue, but still shouldering 100 percent of our core bills. 
We also fear that once we are able to reopen, we will face a recovery 
period of at least 6-18 months in which our revenues will be 
drastically reduced due to social distancing measures and capacity 
restrictions. Our business model relies on our ability to sell a 
minimum of about 80 percent of our total capacities, so operating at 
anything less than that will automatically cause us to lose money. 
Coupled with additional costs incurred due to social distancing, extra 
cleaning, extra safety protocols, and the additional equipment needed 
to safely operate, it will be very difficult for us to simply break 
even. It is likely we will not realize our full revenue streams until 
2023 or later, which puts us in a very volatile situation coming off of 
such a crippling closure.
    Again, many of us have personal guarantees on our businesses. If we 
do not get the help we need, we will lose our homes, our children will 
not be provided for, and everything we have worked for will vanish 
before our eyes due to no fault of our own. A survey of NIVA members 
shows that 90 percent of mom & pop venues, venues like Wave and The 
Cotillion, will go under without Federal assistance. We have remained 
closed in the name of public health and safety, risking everything we 
have with no promise from anyone that we will receive further aid, only 
the hope that Congress will deliver for us.
    But we have not simply been sitting at home hoping we'll get 
relief. NIVA formed shortly after the pandemic so that we could not 
only share tips and resources to navigate this new normal, but also to 
band together and fight for our survival, which has become our full-
time job. And we've been glad to do this alongside and with support 
from others across the live event industry--from the artists to our 
workers to our vendors to our fans. We are very mindful of the 
ecosystem of the live entertainment industry as a whole.
    Unlike many industries, we rely on a national reopening before we 
can resume operations, as the artists that play in Wichita have to tour 
across the country. In other words, we have no ``inventory'' until 
artists begin touring again. And due to inconsistencies in local 
mandates and restrictions on venues, artists are unable to route shows 
at this point. The booking and promoting process has a 3-6 month lead 
time on average, which adds an additional layer of complexity to our 
recovery period. Any seemingly small glitches like unexpected temporary 
closures or restrictions due to outbreaks, inconsistencies in local 
COVID related licensing policies, consumer confidence causing low 
ticket sales, or many other unknown circumstances will make navigating 
the national reopening much more difficult for our industry.
    Our venues are the catalyst to many artists' careers. Without 
smaller stages for new artists to perform, we will see fewer superstars 
in the future, and in turn the entire industry will suffer. Recently, a 
letter was sent to Congress on NIVA's behalf with over 600 artists 
signatures supporting our request for help. Live events provide 75 
percent of artists' income, and without independent stages, many 
artists will have no options of spaces to perform once this crisis is 
over.
    Because of our focus on artists we have a strong alliance with the 
National Independent Talent Organization which represents hundreds of 
mom and pop talent agents and managers. We also have support from 
organizations like RIAA, A2IM, Recording Academy, Country Music 
Association, and Music Biz. Without these industry partners it would be 
nearly impossible for any of us to operate in isolation.
    Beyond our industry partners, and those we do business with, our 
fans miss attending shows at our venues. One of the biggest signals 
that this crisis is behind us will be the ability to go to shows with 
your friends and loved ones once again. To date, we have had more than 
2.1 million e-mails sent to Congress from our fans in support of the 
Save Our Stages Act.
    We also have bipartisan support of 57 Senate cosponsors for the 
Save Our Stages Act, as well as 172 House cosponsors. The Save Our 
Stages Act has been in bills presented by Republicans, Democrats, and 
bipartisan groups.
    What we are asking for is the passing of the Save Our Stages Act as 
written and an extension of PUA to take care of our employees until we 
can rehire them and resume operations. This is what will save the mom 
and pop venues across the country, and ensure we are there to once 
again be the anchors within our communities, and the overall live 
entertainment ecosystem within America.
    The Save Our Stages Act (S. 4258/H.R. 7806) led by Senators John 
Cornyn (R-TX) and Amy Klobuchar (D-MN) and Representatives Peter Welch 
(D-VT) and Roger Williams (R-TX):

   Ensures forgiveness and increases access: This bill 
        establishes a grant program for live venue operators, 
        promoters, producers and talent representatives. By offering 
        grants, forgiveness is ensured. In addition, grants increase 
        access for business owners that may not have a relationship 
        with banks. Finally, the bill extends eligibility to state and 
        locally owned venues (like Red Rocks in Denver, CO) and non-
        profits that otherwise meet the eligibility requirements.

   Doesn't penalize industries that rely on part-time 
        employees: Counts Full Time Employees as 1 employee and part-
        time employees as 1⁄2 an employee. Based on this 
        definition, NIVA members have fewer than 250 FTEs.

   Ensures sufficient funding to survive until reopening: 
        Rather than basing loan amount on payroll, grants are made to 
        eligible recipients in an amount equal to 45 percent of gross 
        earned revenue from 2019, with a cap of $12 million.

   Provides long-term support: Provides supplemental grants to 
        independent businesses that demonstrate continued need based on 
        continued revenue loss. This is the only bill that recognizes 
        venues will be closed well into 2021 and seeks to provide truly 
        long-term support.

   Ensures the ability to keep the lights on: With no 
        restrictions on percentage used for payroll versus other costs, 
        the bill permits recipients to use grants for costs incurred 
        during the COVID pandemic for rent, utilities, mortgage 
        obligations, PPE procurement, payments to contractors, regular 
        maintenance, administrative costs, taxes, operating leases, and 
        capital expenditures related to meeting state, local, or 
        Federal social distancing guidelines.

    Make no mistake, time is of the essence. After 9 months, venues are 
going under at a quickening pace. We desperately need help now, not 
next month or the month after. We need Congress to pass the next Covid 
Relief bill this week.
    On Dec 7 of 2020, The Cotillion celebrated its 60th year of 
continued operation. Instead of a big show and a week-long celebration, 
the historic venue sat empty and shuttered for the first time. Jessie 
and I sat at home, as did our employees, wanting nothing more than to 
be back at work surrounded by the ones we love doing the thing we are 
most passionate about. Our biggest fear, and I think I can say with 
confidence that this is a collective fear of thousands across the 
country, is that we will have to close our doors forever and the 
institutions for which we have sacrificed so much will be destroyed 
after weathering so many hard times throughout history. We are a small 
family business, and have always hoped we would persevere for 
generations to come. We are now pleading with Congress to help those 
like us, don't let the music die, and please save our stages. With your 
help we can survive this, our small family business will survive and 
maybe someday my son Hank will take over and the music will be passed 
on for generations to come.

    Senator Moran. Mr. Hartke, thank you for your compelling 
testimony. And, I too, hope your son is capable of carrying on 
the family business.
    We now turn to our third witness, Mr. Ron Laffitte. He is 
the President of Patriot Management in Los Angeles, California. 
Mr. Laffitte.

             STATEMENT OF RON LAFFITTE, PRESIDENT, 
                       PATRIOT MANAGEMENT

    Mr. Laffitte. Chairman Moran, Ranking Member Blumenthal, 
and other distinguished members of this subcommittee, thank you 
for the opportunity to appear before you today for this 
important hearing on the impact COVID-19 has had on the live 
entertainment industry.
    My name is Ron Laffitte, and I am the President of Patriot 
Management, an artist management company owned by Live Nation. 
Patriot represents over 45 artists, record producers, and 
songwriters, including Pharrell Williams, Ryan Tedder and his 
band, One Republic, the Backstreet Boys, and Usher.
    I have been a part of the music business since I was 14. I 
started helping local bands by doing things like selling T-
shirts and making flyers. Fortunately, for me one of those 
bands was Metallica. I was able to turn that opportunity into a 
career. Instead of going to college, I went on tour. That was 
my education.
    Since then, I have had the privilege of managing many 
bands, running a record company, and ultimately coming back to 
doing what I love the most, representing the artists as their 
manager. Before any of this, I was a music fan and I still am. 
From the beginning, you could always find me in front of the 
stage somewhere as an obsessed fan. That obsession has become 
my life. Most of my closest friends are people I have grown up 
with in this business, people I met on the road, those who 
promote the shows, those who work in the venues, and those who 
manage and staff these tours.
    My story is not unique. A concert is more than an 
opportunity to just listen to music. It is a shared experience 
that creates and requires a community.
    There are many aspects of the COVID-19 pandemic that make 
it an unparalleled tragedy: the lives lost, the jobs destroyed, 
and the social isolation. Our industry has been deeply and 
profoundly affected by this crisis. The pandemic has brought 
concerts and the vast economic ecosystem that supports those 
concerts and all other live events to a screeching halt.
    This ecosystem starts with the artists creating their music 
in bedrooms or garages with a dream of one day performing in 
front of a live audience that
    [inaudible] their own. Artists are feeling the pain of this 
pandemic personally and professionally. They miss performing 
live for their fans but they also feel responsible for the 
thousands of people who help make these concerts and tours 
happen.
    As you all know, the live entertainment industry in the 
United States is massive, with thousands of people who make 
each tour and concert possible, including the road crews, the 
venue personnel, and the concession staff. But when you 
consider the economic impact of the live entertainment 
ecosystem, it goes far beyond just these professions. It 
impacts many local and regional economies. That includes the 
hotels where the performers, crews, and fans stay, the 
restaurants where they eat, and the transportation we use to 
attend these events.
    When the pandemic struck in the United States, live 
entertainment jobs disappeared overnight, jobs that will not 
return until we have conquered this virus. Everyone employed in 
this industry is hurting, whether they have been small towns or 
the big cities, whether they work in independent venues like 
the ones Adam talked about, or the biggest arenas. No venue has 
been immune from the impact of this crisis.
    It is critical that Congress include comprehensive relief 
for the entertainment industry in the next COVID-19 legislative 
package. We were one of the first industries to bear the brunt 
of this pandemic, and we will likely be one of the last to get 
back to normal. This relief should help every venue and every 
professional working in the live entertainment space until this 
crisis ends.
    The pandemic's economic impact on our industry is 
staggering. Ninety-five percent of all events in 2020 have 
either been canceled or postponed, with 77 percent of workers 
having lost 100 percent of their income. In addition, 97 
percent of contract workers, the backup bands, sound mixers, 
lighting companies, et cetera--everyone has been out of work 
since March, and unlike restaurants or airlines that can 
operate at a reduced capacity, live entertainment is largely an 
all-or-nothing proposition.
    There are two specific ways Congress can help.
    First, all live event workers are hurting regardless of 
their employer. Any relief for our industry should focus on the 
employees and the contractors. Grants and loans should be used 
for payroll and made available to all venues with less than 
5,000 seats, as well as all public venues. Save Our Stages is a 
great start, but we can do so much more. All venue employees 
need your help.
    Second, Congress needs to extend the retention tax credits. 
With these credits, workers still employed can maintain 
employment until shows return and furloughed employees can 
continue to receive their employer-sponsored health care.
    Thank you again for this opportunity to testify. I 
appreciate this subcommittee drawing attention to the plight of 
the live entertainment business, especially our workers.
    I look forward to answering your questions.
    [The prepared statement of Mr. Laffitte follows:]

   Prepared Statement of Ron Laffitte, President, Patriot Management
    Chairman Moran, Ranking Member Blumenthal, and other distinguished 
Members of this Subcommittee, thank you for the opportunity to appear 
before you today for this important and timely hearing examining the 
impact of COVID-19 on the live entertainment industry. My name is Ron 
Laffitte, and I am the President of Patriot Management.
    Patriot Management represents over 45 artists, producers and 
songwriters, including Pharrell Williams, Ryan Tedder, The Backstreet 
Boys, and Usher. I also spent more than 10 years as a record label 
executive as GM of Elektra Records and President of Capitol Records, 
where I had the privilege of working with numerous iconic acts, 
including Coldplay and Radiohead.
    Music plays a profound and intangible role in our lives. Music 
evokes a vast array of emotions--and live entertainment is one of the 
most powerful and important ways to experience it. Live entertainment 
is where we gather with friends and loved ones to experience the music 
that stirs our emotions and the events that become life-long memories. 
These experiences also have the ability to be a great equalizer, 
uniting people from all ages, walks of life, and backgrounds as one 
community.
    There are many aspects of the COVID-19 Pandemic that make it an 
unparalleled tragedy--the lives lost, the jobs destroyed, the social 
isolation inflicted, and the educational opportunities missed. No 
industry has been more deeply and profoundly crippled by this crisis 
than live entertainment.
    The pandemic has brought concerts, and the vast economic ecosystem 
that supports concerts and other live entertainment events, to a 
screeching halt. In addition to the economic impact of the shutdown, 
the isolation and despair that has made this pandemic so difficult for 
many is amplified as millions of fans are missing the connection, 
community, and culture these events provide.
    Restrictions on mass gatherings, to rightly protect public health, 
have caused numerous live entertainment events to be cancelled or 
postponed, resulting in a sharp contraction in live entertainment 
revenue. Live music in the United States generated $10.9 billion in 
2019,\1\ revenues that largely disappeared in 2020. PWC estimates that 
live music revenue will contract 64 percent globally in 2020.\2\
---------------------------------------------------------------------------
    \1\ PwC, Global Entertainment & Media Outlook, 2020-2024: Music, 
Radio, and Podcasts, 15, Sept. 2020.
    \2\ Id.
    
    
    How big is the economic impact? The United States is home to the 
world's biggest music market.\3\ The music industry added $143 billion 
annually in value to the U.S. economy in 2016 and created 1.9 million 
jobs across a broad swathe of vocations.\4\
---------------------------------------------------------------------------
    \3\ Stephen E. Siwek, Economists Incorporated, The U.S. Music 
Industries: Jobs & Benefits, Recording Industry Association of America, 
5, April 2018.
    \4\ Id.
---------------------------------------------------------------------------
    What is the live entertainment ecosystem in the United States? This 
ecosystem starts with artists creating music in their bedrooms or 
garages with the dream of one day performing in front of a live 
audience. Artists feel the pain of the pandemic personally and 
professionally. They miss performing live for fans. They miss the joy 
of telling a story through music. But, most importantly, they feel 
responsible for the thousands of people who help make concerts and 
tours happen.
    The live entertainment ecosystem is comprised of more than 80,000 
businesses, including businesses of promoters, agents, managers, 
performers and artists. Most artists also have small businesses setup 
to employ tour managers, production managers, lighting directors, audio 
engineers, bus drivers, and other individuals critical to the artist's 
execution of a live event. There are also the hundreds of people 
working behind the scenes to make a tour and concert successful from a 
venue's perspective, including stage and sound crews, truck drivers, 
electricians, welders, security officers, ushers, ticket takers as well 
as employees who operate food and beverage concessions and sell 
merchandise.
    Much of the workforce involved in putting on a live event of any 
size are highly skilled in their craft. Lighting technicians, sound 
engineers and stage designers and builders, among so many others, spend 
years honing their expertise to deliver memorable events under 
circumstances that can be taxing for people physically and personally 
as they live much of life on the road.
    But when you consider the economic impact of the live entertainment 
ecosystem, it goes far beyond these professions, and implicates many 
local and regional economies. It includes hotels where performers, 
crews, and fans stay, restaurants at which they eat, and transportation 
they use to attend an event and haul equipment from one city to 
another. All of these industries suffer when live entertainment does 
not exist.
    When the pandemic struck the United States, live entertainment jobs 
disappeared overnight, jobs that will not return until we have 
conquered the virus. I implore Congress to help us protect and preserve 
this ecosystem during these challenging times. No venue, vendor, artist 
or live entertainment worker has been immune from the impact of this 
crisis, whether they live in small towns or large cities, or work at 
small venues or large arenas. Live entertainment workers can be full-
time or part-time, part of a tour or part of a city's base of skilled 
workers that bring sets, stages, and venues to life.
    I strongly urge Congress to include relief for the live 
entertainment industry in the next COVID-19 legislative package. We 
were one of the first industries to bear the brunt of the pandemic, and 
we will be one of last to get back to normal. This relief should help 
every venue, company and professional involved in the live 
entertainment ecosystem stay afloat until this crisis abates.
    This is a sector which will see demand return at rates of 2019 or 
more once the virus is contained. I would ask Congress to help us 
ensure the supply chain is in place and strong enough to meet this 
demand when it returns. Businesses such as live entertainment will be 
critical in fueling the United States' economic recovery.
    Many performers feel as isolated from their fans as their fans do 
from them. They cannot wait to go back on tour to bring joy and a sense 
of togetherness to millions of fans. And once they do, crews and 
communities across our Nation will once again tap into the economic 
output of live entertainment. Congress needs to help bridge the gap 
until that can occur.
    As an industry, we are all hurting. And unlike restaurants or 
airlines that can operate at reduced capacity, live entertainment is 
largely an all or nothing proposition. The pandemic's economic impact 
on our industry is staggering: 95 percent of all events in 2020 have 
been cancelled or postponed and 77 percent of workers have lost 100 
percent of their income. In addition, 97 percent of contract workers 
(back-up bands, sound mixers, bus drivers, lighting companies, etc.) 
have been out of work since March.
    There are three specific ways Congress can help the live 
entertainment industry. First, expand the Save Our Stages legislation 
to provide relief to more venues, including any venue with less than 
5,000 seats as well as all publicly owned venues. The employees of 
these venues and the vendor ecosystem they support need your help just 
as much as those employed and supported by the subset of venues in the 
current draft bill. And these venues are essential places of work not 
just for employees, but for contractors. They need access to grants 
until mass gatherings can resume safely.
    Second, Congress needs to extend employee retention tax credits. 
With these credits, workers still employed can maintain employment 
until shows return and furloughed employees can continue to receive 
their employer-sponsored healthcare. Maintaining employment 
arrangements will limit having additional live entertainment industry 
workers pushed into unemployment, which will ultimately allow a quicker 
economic recovery and lower long-term worker dislocation within the 
industry.
    Third, I urge you to pass the Mixed Earner Pandemic Unemployment 
Assistance Act (H.R. 7691) to address unnecessary burdens when filing 
for unemployment faced by gig musicians with multiple employment 
streams.
    Thank you again for the opportunity to testify at this important 
hearing. I greatly appreciate this subcommittee drawing attention to 
the plight of the live entertainment industry and live entertainment 
workers caused by the pandemic. I look forward to answering your 
questions and working with you to support the sector, and the 
workforce, I regard as family.

    Senator Moran. Mr. Laffitte, thank you very much.
    Now Mr. Pantuso, President and Chief Executive Officer of 
the American Bus Association.

 STATEMENT OF PETER J. PANTUSO, PRESIDENT AND CHIEF EXECUTIVE 
               OFFICER, AMERICAN BUS ASSOCIATION

    Mr. Pantuso. Chairman Moran, Ranking Member Blumenthal, 
members of the Committee, thank you very, very much for giving 
us the opportunity to testify today.
    Our message is unique. We represent bus companies that 
bring entertainers and bring fans to the venues and events.
    There are three key points I would like to make today.
    First, the entertainer motorcoach industry, like the entire 
motorcoach industry, is in dire shape. They need a lifeline. 
Without one, 40 to 50 percent of the industry could be out of 
business by 2021. The industry is an essential part of 
America's transportation network. It is very capital-intensive 
with high fixed costs, and it has a very specialized workforce.
    The Emergency Coronavirus Relief Act of 2020, which 
includes the CERTS Act that most of this committee has 
sponsored or supported, is critical to our survival.
    ABA's motorcoach members represent private, mostly small 
businesses, including the entertainer motorcoach operators, and 
we also support the travel and tourism industry around the 
country. The motorcoach industry provides nearly 600 million 
passenger trips annually, on par with U.S. commercial airlines. 
3,000 U.S. motorcoach companies employ approximately 100,000 
individuals and generate $15 billion in revenue. But they also 
support 2 million additional jobs around the country and create 
over $200 billion in economic activity.
    Today the industry is operating at about 10 percent of 2019 
levels. 85,000 of our workers are unemployed, and the path to 
recovery is another 12 to 24 months away. Without any direct 
financial support, up to 50 percent of these businesses could 
close forever, meaning their employees will be out of work 
permanently.
    The live entertainment performances include advance 
preparation, onsite activities, and post-event activities, and 
motorcoaches play a critical role at every juncture. The 
entertainer motorcoach vehicles are built to serve the 
essential and unique transportation needs of entertainers, 
celebrities, and their crews. But they also serve politicians, 
the media, and other specialized customers. These vehicles 
carry people and equipment for ground-based tours. They are 
designed to include sleeping, meeting, and culinary support 
facilities. They get celebrities to the event, serve as a 
support vehicle onsite, and then get them to the next event.
    Traditional motorcoach companies also play a very important 
role in the entertainment industry by bringing fans to the 
events and venues. All motorcoach companies are a vital 
component of this nation's transportation network. They provide 
inter-city scheduled bus, commuter services, school 
transportation, charters, and entertainment services. The 
industry also serves the country in times of crisis, moving 
people out of harm's way during hurricanes and wildfires, and 
moving the military and their equipment for training and 
deployment. Earlier this year, FEMA and State emergency 
management agencies hired entertainer motorcoaches to house 
emergency response personnel during many of the evacuations and 
hurricane relief efforts in the Gulf region.
    COVID is also having a significant impact on the motorcoach 
manufacturing and downstream suppliers. In previous years, up 
to 1,500 new motorcoaches, valued at a cost of over $500,000 
each, were sold in the U.S. Now production and sales of new 
motorcoaches to the private sector have all but stopped. The 
impact of hundreds of good paying manufacturing jobs and 
thousands of workers who supply engines and tires, seats, 
electronics, and hundreds of other components are affected, and 
this impact will last for years.
    On top of this, the value of motorcoaches has dropped by as 
much as 50 percent, making it impossible to sell used coaches 
or trade them in, severely limiting the abilities of motorcoach 
operators and owners to borrow money to keep their businesses 
afloat.
    In conclusion, Mr. Chairman, we appreciate your leadership 
in identifying the entertainer motorcoach segment and the 
entire industry since it has been overlooked for a long time 
and it is a critical element of our nation's transportation 
network. We urge you and your colleagues to pass the Emergency 
Coronavirus Relief Act of 2020, which includes the provisions 
of the CERTS Act, when it comes before Congress this week. 
Thank you very much.
    [The prepared statement of Mr. Pantuso follows:]

      Prepared Statement of Peter J. Pantuso, President and CEO, 
                        American Bus Association
    Chairman Moran, Ranking Member Blumenthal, and distinguished 
members of the Subcommittee: on behalf of the American Bus Association 
(ABA) thank you for calling today's critical hearing regarding the live 
event entertainment industry and the impacts affecting the industry as 
a result of the ongoing COVID-19 pandemic.
    My name is Peter Pantuso, and I am the President and CEO of the 
American Bus Association in Washington, DC. As CEO, I am responsible 
for the Association's day-to-day operations, including policy 
development, government and regulatory affairs activities, membership, 
communications and marketing, meetings and conventions, finances, and 
publishing. In addition to my role at ABA, I also serve as President of 
the National Bus Traffic Association and the ABA Foundation.
    ABA has grown to become North America's leading and largest 
motorcoach, group tour, and travel association, and serves as the 
oldest and most respected voice of this industry. In addition to 
representing 800 motorcoach companies and 65 percent of all 
motorcoaches on the road, the ABA also represents more than 2,500 
businesses in the tour and travel industry (those who rely on 
motorcoaches to bring business to their communities, including retail 
businesses, convention centers, hotels, restaurants, entertainment 
venues, and other attractions), along with motorcoach manufacturers and 
suppliers. The ABA has also expanded the breadth and inclusiveness of 
the industry by bringing management services to other organizations, 
including Skal International--USA and the Florida Motorcoach 
Association and creating the Hispanic Motorcoach Council, Entertainer 
Motorcoach Council and the Women in Buses Council, among others. The 
ABA also offers safety educational opportunities to the motorcoach 
industry by creating the Bus Industry Safety Council and Bus 
Maintenance and Repair Council. The ABA Foundation has evolved into an 
$8 million organization that conducts critical motorcoach industry 
research and provides scholarships to support and promote the industry, 
workers and their families. Since its inception, the ABA Foundation has 
awarded over $1 million in scholarships to nearly 400 individuals.
    ABA's motorcoach members represent private motorcoach operators, 
including entertainer motorcoach manufacturers and operators, tour 
operations and all facets of small businesses supporting the tour and 
travel industry. More broadly, motorcoach companies are a vital 
component of the national public transportation network, providing 
intercity scheduled bus service, commuter and shuttle operations, 
school bus transportation, charter, and entertainment services, and in 
some cases contracted services for public transit authorities, 
airlines, and Amtrak. Annually, the motorcoach industry provides nearly 
600 million passenger trips, on par with the domestic commercial 
airline industry. The industry is comprised of 3,000 companies, mostly 
small family-owned businesses, operating 36,000 motorcoaches. While 
motorcoach companies directly employ nearly 100,000 people and generate 
$15 billion in economic activity, the motorcoach, tour, and travel 
industry supports nearly two million additional jobs across America and 
creates over $236 billion in direct and indirect economic activity 
nationwide.
    Before March 2020, the motorcoach, tour, and travel industry helped 
drive the tourism and transportation economy, and the charter sector 
was preparing for another strong tourist and entertainment season. 
However, with outbreak and spread of COVID-19, the industry came to a 
standstill. Motorcoach ridership dropped on all scheduled service 
routes as people stopped traveling between communities and cities, and 
commuter buses stopped carrying passengers as workers shifted to work 
from home and stopped commuting. All contracted trips for charter 
operations, including entertainment and sports related contracts were 
cancelled. As the summer proceeded, hope further faded as government 
directives and spiking health concerns forced anticipated concert tours 
and sporting events to be cancelled. For example, the NCAA's March 
Madness tournament was one of the first national sporting events to 
cancel at the beginning of the COVID-19 outbreak, impacting hundreds of 
motorcoach companies that would be moving teams and fans during that 
one-month march to the Final Four.
    Today, the industry is operating at less than 10 percent of 2019 
levels, with no clear path forward for a possible recovery, even 
factoring in the positive discussions surrounding vaccines. Lacking the 
support of any form of direct financial assistance, the motorcoach 
industry and specifically the entertainer motorcoach sector, face a 
dire situation. As this Committee examines the impact of COVID-19 on 
the live entertainment industry, we appreciate you identifying the 
motorcoach transportation industry as a supporting industry of the 
broader entertainment industry and including it in your examination. To 
date, our industry has been entirely overlooked in terms of its 
critical role in the Nation's transportation network and economic 
engine.
    For purposes of this hearing, it is important to understand that a 
live entertainment performance or event is a multifaceted undertaking, 
that includes advance preparation, post-event activities, and the 
actual events. Within the scope of this undertaking, motorcoaches play 
a critical but sometimes understated role. First, there are entertainer 
coaches which serve the unique and necessary transportation needs of 
not only artists, entertainers, and other celebrities and their crews, 
as well as politicians, the media, and other specialized customers that 
rely on motorcoaches for their businesses. These vehicles carry people 
and equipment, for ground-based tours to various entertainment venues, 
political events, or other scheduled events, and provide sleeping, 
meeting, and culinary accommodations in an efficient manner. In terms 
of the larger entertainment industry, these vehicles play a critical 
role in advancing the event and post-event activities, facilitating the 
transportation of both the lead artist and the crew. Currently, there 
are 30 entertainer motorcoach companies nationwide, operating over 
1,000 of these specialized vehicles. But, due to COVID-19, most of 
these vehicles are parked and providing zero revenue. A sad, but 
noteworthy outcome of this situation, is that during recent hurricanes 
in the gulf coast region hundreds of these coaches were put into 
service in the Lake Charles, LA area, and other parts of the gulf to 
support first responders by providing sleeping facilities and 
restrooms. If it were not for the horrible hurricane and wildfire 
season we experienced this year, where once again the motorcoach 
industry stepped up to help FEMA, these entertainer motorcoach 
operators, as well as other motorcoach companies around the country, 
would have been entirely out of work.
    Many of these entertainer coach companies are also often considered 
second stage manufacturers and these companies are small, family-owned 
businesses, often multi-generational, that pride themselves on their 
unique niche in the motorcoach industry. Generally, they purchase a bus 
``shell'' from an original equipment manufacturer and customize it to 
meet the needs of their customers. An average entertainer coach, 
depending on its configuration for the ``star'' or crew will 
accommodate up to 12 passengers. Over time and use, these coaches are 
often modified for reuse within the same industry, for the life of the 
vehicle.
    In addition to entertainer motorcoaches serving the explicit travel 
needs of entertainers and others, the motorcoach industry also plays an 
important role in the entertainment industry by bringing fans and 
audiences to events and venues. As these vehicles generally seat 35 or 
more, and include a bathroom facility, they provide an opportune way 
for large groups to travel to widely attended events. It is not unusual 
within the motorcoach tour industry to offer entertainment events as 
part of a tour or larger tour package. But, like the entertainer 
motorcoaches, due to COVID-19 and the cancellation of tours, sports and 
entertainment events, this segment of the industry is almost entirely 
parked and has been for months, with no to limited expected recovery 
within the next 12 months--even with a smooth vaccine process.
    In short, ABA and its members have been at the center of the COVID-
19 ``storm.'' The cancellation of entertainment events, including 
concerts and tours, theatrical productions, sports schedules and more, 
compounded by broadly publicized warnings against using public modes of 
transportation, and government directives limiting movement, is taking 
a serious toll on the collective motorcoach industry. Because the 
motorcoach industry is dominated by small entrepreneurial businesses, 
95 percent of which are privately owned family businesses who operate 
on very thin margins, it was not prepared to withstand this 
unprecedented, significant economic downturn. For comparison, the 
current situation is far worse than the downturn following the tragic 
events of September 11, 2001, and the industry's condition continues to 
deteriorate as we head into the slow winter season for the industry. 
Following 9/11, although fear of travel was a factor, it was focused on 
air travel and travel to larger urban areas. Travel did continue by 
other modes and to other venues and it returned to ``normal'' in a much 
shorter period of time.
    We are hearing daily from our members who are struggling to survive 
and are seeking a bridge to recovery, which at this point we believe is 
at least 12 to 24 months away. In the interim, we note that the 
Administration's and Congress's efforts to assist have fallen short for 
our industry. The motorcoach industry is a capital-intensive business 
with more than 60 percent of the costs tied to equipment, facilities, 
insurance, and other fixed costs that companies must continue to pay 
despite the lack of passengers and income. The Paycheck Protection 
Program (PPP), although well-intentioned, reached about 10-20 percent 
of our membership and only provided short-term assistance. The PPP 
money was quickly spent to bring employees back although there was no 
possible work, and the PPP program provided no relief from the burdens 
associated with the capital-intensive nature of the industry. The Main 
Street Lending Program, also well-intentioned, was delayed in 
implementation and the requirements are too steep for most struggling 
companies seeking a lifeline for survival. At this point, targeted 
financial assistance to bridge the industry through this crisis is 
necessary for it to survive.
    We need Congress to act and include the Coronavirus Economic Relief 
for Transportation Services Act or CERTS Act, or other direct financial 
assistance in a COVID-19 relief package before the end of the 116th 
Congress. As background, the CERTS Act provides direct relief for 
private motorcoach, school bus and passenger vessel industries and now 
has 59 bipartisan co-sponsors in the Senate (S. 4150), and over 270 
bipartisan co-sponsors in the House (H.R. 7642), which is 60 percent of 
the entire Congress and more than any other relief bill that has been 
proposed--and both bills continue to gain support as members start 
comprehending the extreme circumstances facing the motorcoach industry. 
The supporters include bipartisan leaders in both chambers, including 
chairman and ranking members of appropriations and authorizing 
committees.
    All sectors of the motorcoach industry provide vital transportation 
services to not only the entertainment industry, but to the larger 
national transportation network. The motorcoach industry also provides 
sustainable employment for hundreds of thousands of workers, both 
directly and indirectly. As well, 0ne third of motorcoach companies 
provide critical school bus service, and those operations of our 
members have also been harmed by school districts refusing to pay 
contracts during school closures in the spring and continuing this 
fall.
    The motorcoach industry also serves this country in times of 
crisis, moving people out of harm's way, such as evacuating citizens 
during hurricanes and wildfires, and serving as component of our 
national defense by moving our military and their equipment for 
training and deployment and protecting critical infrastructure. A 
robust motorcoach industry is an essential element to the recovery of 
the live entertainment industry, as well as the entire national 
economy. If this industry fails, the effects will be devastating. The 
industry's failure will exacerbate the unemployment burden and reduce 
transportation capacity nationwide, and will reach beyond the immediate 
industry to the related supply chains, affecting manufacturing, 
financial services, tourism and beyond. For these reasons, an immediate 
investment in bridging the motorcoach industry through this crisis will 
yield a more long-term and sustainable outcome for the national 
economy.
    We need your leadership now and urge you to work with your 
colleagues in this body and the U.S. House of Representatives to 
negotiate another COVID-19 relief package with the inclusion of the 
CERTS Act. This legislation provides the direct economic assistance the 
motorcoach industry needs. The latest $908 billion proposal offered by 
a bipartisan, bicameral group of members included $8 billion in funding 
based on the CERTS Act language, and has broad support in both 
Chambers. The ABA strongly encourages members of this Subcommittee and 
all Senators and Members of Congress to pass a bipartisan package of 
this nature, that includes $8 billion for these severely impacted 
industries including the motorcoach industry, before the end of this 
Congress.
    Thank you again for the opportunity to testify today before this 
Subcommittee. In sum, we need Congress to provide dedicated funding for 
motorcoach, tour, and travel industry businesses. Timing is critical, 
and ABA stands ready to assist Congress and this Committee in any 
capacity.

    Senator Moran. Thank you, Mr. Pantuso.
    Mr. Strickland.

           STATEMENT OF MICHAEL T. STRICKLAND, CHAIR 
                   AND FOUNDER, BANDIT LITES

    Mr. Strickland. Thank you. I would like to thank first 
Chairman Wicker, Chairman Moran, Ranking Member Senator 
Blumenthal, my own Senator, Ms. Marsha Blackburn, my Senator, 
Lamar Alexander, and all of the distinguished members of this 
committee for all that you have done and will do.
    I am Michael T. Strickland, Founder and Chairman of Bandit 
Lites. We are an entertainment lighting company. And Senator 
Moran, to your point, Garth Brooks is one of my best friends 
and biggest customers, a great gentleman. But Garth Brooks, 
Jimmy Buffett, Alice Cooper, Barry Manilow, Carrie Underwood, 
the NFL, NASCAR--these people all count as my clients.
    I am batting cleanup today because I have got my arms 
around the entire live event industry from buses and trucks to 
labor forces such as the IATSE, to catering people, to rodeos, 
to fairs. We are all shut. We are like a band of gypsies. We 
have no lobby and we have no PACs. We have no representation on 
the Hill. That is why I am sitting here today. That is what we 
do.
    If you remember nothing today, remember the word ``spurs,'' 
spurs like in a cowboy.
    S, shut. We have been shut since March 13. We will not be 
open until June or July at the earliest. Zero income. 97 
percent of our industry is sitting dead in the water. We are an 
$877 billion industry per the U.S. Bureau of Economic Analysis. 
There are 10-plus million people employed, as you have all so 
eloquently stated, across all of the different strata of this 
industry. We are all sitting dead still.
    P, PPP. Thank you very much for the PPP you gave us in 
April. It ran out in June. The virus is still with us. That 
money is long gone. I urge you by this Friday in whatever it is 
that you pass, that you pass another round of PPP. That will 
allow all of the folks in the live event industry to get 
through January and February. That is crucial because hopefully 
in January and February we can effect a broader relief.
    U, unemployment. I urge you to continue all the pandemic 
economic relief actions that you put forth in the wonderful 
CARES package back in April. That was a stunning decision. I 
applaud you for what you did. Please continue those at least 
through June to allow those people that are negatively impacted 
and need those pandemic relief funds made available to them.
    RESTART, which is really why I am here. RESTART is the only 
vehicle that I have identified that holistically allows anyone 
that has been devastated to survive. In the case of our 
industry, our industry is at zero. In order to get a Main 
Street lending loan or, indeed, in order to get a commercial 
loan, you have to go before a lending institution, and you have 
to have three things: a strong balance sheet, a strong profit 
and loss statement, and an income stream. We have none of the 
above. There are $595 billion sitting unused in the failed Main 
Street Lending Program. Certainly in the future, we could 
repurpose some amount of that to get that money to the people 
in the crushed small businesses.
    I have spoken to Senator Todd Young who wrote it, and we 
realize it needs to be retooled. At the moment it was written, 
a 25 percent reduction in revenue was phenomenal. A year later, 
a 25 percent reduction in revenue is not so significant. I 
would urge you to retool it, up the amount of revenue loss, 
which narrows the bill which will give it a CBO score which 
will allow it to function within a bigger bill. But I know we 
can get there.
    And the last part of this whole thing is S, Save Our 
Stages. I applaud you for the vision. Senator Klobuchar, 
Senator Cornyn, a wonderful job. That is Omaha Beach. It is D-
Day for the live event business. We landed on Omaha Beach. You 
so graciously gave us Save Our Stages. We have got to go up the 
cliff and on to Paris. How do we get up the cliff and how do we 
get to Paris' RESTART. That is the only vehicle that gets us 
there. Save Our Stages is a great first step. I urge you to 
pass it as soon as possible, but we must go to the next step 
and we must have something like RESTART that will give us some 
amount of our income, 45 percent which is what is in RESTART, 
and it will convert to a 7-year loan which will allow us a path 
to recovery.
    As I said, we have no lobby. We have no PAC. And to quote a 
friend and client of mine, Jackson Brown, we are running on 
empty. There are lives in the balance.
    I urge you to assist small business in general, live events 
in particular, and pass RESTART and all of these other 
wonderful bills. Imagine a world with no arts and culture. That 
is a world with no live events. At Bandit Lites, we coined a 
word years ago called ``humanomics.'' We make business 
decisions based on the human effect first and the business 
effect second. I urge you to look at the human effect as 10 
million people are sitting idle.
    Thank you.
    [The prepared statement of Mr. Strickland follows:]

    Prepared Statement of Michael T. Strickland, Chair and Founder, 
                              Bandit Lites
    Commerce Committee Chairman Wicker, Subcommittee Chairman Moran and 
Ranking Member Blumenthal, distinguished members of this Committee, I 
would like to thank you on behalf of myself and over ten million people 
in the Live Events Industry for affording us this opportunity to 
testify today.
    I am Michael T. Strickland, Chair and Founder of Bandit Lites, a 
52-year-old global leader in entertainment illumination. Garth Brooks, 
Jimmy Buffett, Alice Cooper, Carrie Underwood, Barry Manilow the NFL, 
NASCAR, Carnival Cruise Lines and over 300 others are part of our 
client base.
    On March 13, 2020, the entire Live Event industry closed in a 
moment. Covid 19 was upon the world and large events were no longer 
possible and would not be until the virus was eradicated. Congress 
moved quickly to provide the CARES Act which included many things 
including the Payroll Protection Program.
    By June 2020 all the PPP money was expended, but the virus 
continued. Most industries found ways to pivot, alter their methods, 
and learn to open and survive. Live Events could not open, as large 
crowds were still not possible. The issue before Live Events was purely 
medical and we understand that. Unless and until the vaccine is 
eradicated, Live Events cannot return.
    As we sit before you, it has been nine months that the entire 
industry has earned zero income. Live Events cannot return to work 
until June 2021 at the earliest, and that is only if the vaccines are 
effective and we achieve herd immunity, which is not guaranteed. The 
return-to-work date may be even further away. Live Events is an $877 
billion dollar industry with over 10 million people per the U.S. Bureau 
of Economic Analysis. There are over 500,000 companies. Every company 
sits idle earning zero income. The 10 million plus people are either on 
unemployment or working in a different field, at a lower rate of pay.
    The companies and the people in the Live Events Industry have only 
received 10 weeks of PPP, and nothing else. If Live events can return 
to work in June 2021 it will have been 15 months with no income aside 
from the original 10 weeks of PPP. Even if a second round of PPP is 
provided, that would be only 20 weeks of partial payroll to cover a 64-
week period. This amount of money is not enough to remain open and pay 
employees.
    Congress has worked tireless for months to deliver relief to the 
Nation and has done a great job in many areas. There is a still a 
segment of society that is at the brink of extinction, and that is the 
Live Events Industry. No other industry is 100 percent shut down and 
will be until June 2021. Live Events is the true industry that was the 
first to shut and will be the last to reopen.
    Both the House and the Senate have suggested in various bills that 
the Save Our Stages Act be passed to save Americas important venues 
which are a part of the Live Entertainment Industry. I applaud you for 
this wisdom and urge you to pass this important piece of legislation as 
part of a relief package. However, Save Our Stages only provides 
funding for venues, managers, booking agents and promotors. This is 8 
percent of the Live Events Industry. All other segments of the industry 
receive no support via Save Our Stages. Here is a partial list of 
companies and people still in need of funding: Artists, Actors, 
Performers, Sound, Lighting, Video, Pyrotechnics, Lasers, Caterers, 
Rigging, Trucking, Bussing, Staging, Wardrobe, Designers, Dancers, 
Opera, Theaters, Festivals, Tours, Orchestras, Corporate Shows, Trade 
Shows, Conventions, Speakers, TV Studios and Stations, Radio Stations, 
Film, Theme Parks and attractions, Museums, Movie Theaters, Labor 
Companies, Free Lance workers, Circuses, Fairs, Rodeos, Water Shows, 
Freight, Drapes, Power, Radios, Manufacturers, and many others. We urge 
you to pass Save Our Stages, but to also save the rest of the Live 
Events Industry. All these industries need one another to survive. 
Venues will have no artists to play in them or people to staff the 
events without holistic industry funding. Please Save All Live Events.
    We have already lost 30 percent of our companies, never to return. 
Over 20 percent of the people that have left the industry will never 
return. We lose more people and companies every day. If Congress does 
not pass additional PPP and Enhanced Unemployment in December, we will 
lose another 20 to 30 percent of the firms and people by the end of 
January. But that is only the start.
    No firm and no person in Live Events qualify for a commercial loan. 
You must have a strong balance sheet, strong profit and loss statement 
and a viable income stream to borrow money. No company in the Live 
Event Industry qualifies, therefore they cannot secure a loan.
    The only path that will save Live Events is the RESTART Act. 
RESTART will provide every firm 45 percent of 2019 income which will 
allow most firms to survive well into 2021. The portion spent on 
payroll and allowable expenses will be forgiven in the style of PPP. 
The balance will convert to a 7-year loan with no payments year one, 
interest only year two, and amortization years 3 through 7 at around 1 
percent interest. This format allows companies to survive, gather cash, 
and repay the loan over 7 years. There is a $12 million dollar limit 
per firm. Many venues, radios stations, TV stations, and not for 
profits are owned by or controlled under governmental agencies or 
municipalities. They all need relief as well, as they function as 
stand-alone entities with no source of income other than their Live 
Event revenue stream.
    RESTART as written requires a 25 percent loss of income and is 
available for firms of less than 5,000 people. The CBO Score on this is 
$700 to $800 billion and is simply too costly. RESTART was written in 
May 2020, when a 25 percent reduction in revenue was significant. Now 
that we are one year into the pandemic 25 percent is simply a bad year.
    RESTART must be written to save small businesses that have suffered 
loss of income over 50 percent and that have under 500 employees. This 
will CBO Score at around $250 billion which is much more affordable. 
Much of this will be repaid as a loan.
    Repurposing of $200 billion dollars from the failed Main Street 
Lending Program will fund RESTART, and this money is already 
appropriated, thus it would require no new funding. There is also 
$134.5 billion dollars sitting unused in the PPP fund. These two funds 
are more than sufficient to fund all small businesses with less than 
500 employees (the Federal definition of a Small Business) with a loss 
of revenue of over 50 percent in 2020 compared to 2019.
    The Live Event Industry is becoming extinct as we hold this 
hearing. Every day that passes, more people and firms fail. Unlike any 
other industry, 100 percent of Live Events is facing extinction now. If 
RESTART is not passed in January, the industry will cease to exist. 
Imagine a world without entertainment and events. The loss of arts and 
culture to our society will be a blow to us all.
    Please save all the Live Events Industry as well as all other small 
businesses that are on the brink of extinction. Please pass RESTART in 
January.
    Thank you very much for your time and attention. Thank you and 
Congress for all that you do for our great nation.

    Senator Moran. Mr. Strickland, thank you very much. Even in 
the absence of lobbyists, you perform very well in lobbying.
    Mr. Strickland. Thank you.
    Senator Moran. Thank you for your presence today.
    Let me see if I can take a theme that I am interested in 
pursuing that resonated throughout all of the testimonies, the 
inability of the Paycheck Protection Program to solve the 
problem. And I heard Mr. Hartke say that it did not work in 
circumstances where there was virtually no revenue and it was 
too short-term in its duration.
    Mr. Strickland, you talked about the Paycheck Protection 
Program and asked that it be reauthorized. I would ask all of 
our witnesses, tell me what has been missing in the Paycheck 
Protection Program to meet your needs? Does a separate program, 
as some of you have testified, need to be addressed, need to be 
enacted, or what is it that the Paycheck Protection Program can 
do to make it--we can do to make it work better for all of your 
circumstances?
    Mr. Strickland. Thank you, Chairman. That is a great 
question.
    The Paycheck Protection Program, when it was initiated, I 
think to Congress and, indeed, to most of us, myself included, 
seemed like that would be the answer because we all believed we 
would be back to work in June. The fact that it was only 10 
weeks of income in retrospect was far too little. By the time 
we get back to work, it will be 74 weeks. So all we have 
received as small businesses is 10 weeks of payroll.
    So I think the first issue would be the longevity of it. In 
a perfect world, this Friday you would pass a payroll 
protection plan that provided 36 to 48 weeks of PPP. I think 
that is a bit of a stretch. But just the shortness of it--
because even now if you pass an additional round of PPP this 
Friday, that is 10 weeks. That is the last 2 weeks in December 
and January and February. The live event industry is not going 
to be back until the vaccine takes hold and we have herd 
immunity, and that is June, July, August, September. And that 
is simply payroll. So what do we do for the rest of the time? 
Ergo, RESTART.
    Senator Moran. Mr. Pantuso?
    Mr. Pantuso. Yes. Thank you, Mr. Chairman.
    The PPP program had great intentions, and we appreciate 
that. We have a very valued and skilled workforce, so we want 
to bring them back. The reality is that we have no business. So 
when we brought people back for that 8 or 10-week period, they 
merely came and sat, collected the PPP monies and then left 
again and back on unemployment. All it really did was transfer 
the unemployment system from a State system or Federal system 
onto a private individual using Federal dollars for a period of 
time.
    Our business is gone. As I said, 10 percent of the business 
is operating across the board. That is about all. And there 
will be no recovery for at least another 12 months. Until that 
time, there will not be an opportunity for people to come back 
and drive buses for the most part. We really need to keep the 
industry alive so that we can be a vibrant part of the 
transportation network, and to do that, we need to help the 
companies stay alive either with help covering their fixed 
costs or their capital costs or their interest payments that 
they are paying on a bus that is worth $500,000 or $600,000.
    Senator Moran. Any of our other witnesses wish to address 
that question?
    Mr. Hartke. Yes. Thank you, Chairman Moran. I will jump in 
with that.
    You know, just to repeat what Pete just said, we have been 
fully shut for 9 months now with no work for our employees to 
do. Many, many, many venues across the country are completely 
out of funds. So the amount of PPP and the restrictions placed 
upon it will not save our industry. It will not save the 
venues. There are people that will completely go out of 
business with those restrictions.
    So the Save Our Stages Act is targeted toward our industry 
specifically, and that is what is going to get us through this.
    Senator Moran. Let me ask a follow-up question with you, 
Mr. Hartke. The Paycheck Protection Program I think you 
highlight does not work well when there is little or no income. 
What about the restrictions on audiences, the size, the 
distancing, the percentage of capacity? Is it possible for the 
entertainment industry to operate at a smaller volume, fewer 
people in the audience and still earn a living?
    Mr. Hartke. So there are a couple things with that. Right 
now, no, absolutely not because there are no tours. We rely on 
a national reopening to get back to work. The artists that we 
book in Wichita, Kansas--they have to go through Denver or 
Dallas or Kansas City or another major market around us and 
have those connected across the country for them to get here. 
So we have no inventory. There are no artists touring right 
now.
    Beyond that, we operate at about 70-80 percent to capacity 
ticket sales. So if we are opening at 30-40 percent capacity, 
we are losing money immediately. We actually tried that back in 
June. We opened briefly for about 3 weeks. We booked a bunch of 
local bands, and we lost more money being open than we did just 
in hibernation mode. So that bleeds us out quicker.
    Now, at the end of this, we are going to have to open at a 
reduced capacity, but hopefully there is a better understanding 
of this virus. The restrictions are not, you know, ebb and 
flowing right now. We are back to restrictions of the max of 
100 people in Sedgwick County for an event. So those were 
lifted and then reinstated and lifted and reinstated. So with a 
3 to 6-month lead time it takes to book a touring act and 
promote it efficiently, there is no way to do that right now. 
So, yes, we are pretty stuck.
    Senator Moran. That unfortunately makes sense to me.
    Senator Blumenthal.
    Senator Blumenthal. Thanks, Mr. Chairman.
    Mr. Chairman, I would like to yield part of my time to 
Senator Klobuchar so she can have the opportunity to make some 
opening remarks. She is a leader of this effort. And I will 
save my questions to the end of her remarks or after the next 
witness, if I may.
    Senator Moran. Senator Klobuchar.

               STATEMENT OF HON. AMY KLOBUCHAR, 
                  U.S. SENATOR FROM MINNESOTA

    Senator Klobuchar. Thank you. I am doing marketing of our 
Save Our Stages with a mask. But I wanted to thank everyone and 
just embrace everything that you guys have said in such 
wonderful words. You can see the creativity of the State of 
Tennessee, Senator Blackburn, coming through in your turn of 
phrases, Mr. Strickland. And I am more than happy to have, with 
Senator Cornyn, led this, in your words, band of gypsies over 
here so that we can get something done.
    I think one of the things we have learned from this 
pandemic is it is not one-size-fits-all, that not every 
business and every group of employees are affected in the same 
way. I know the home State of Jefferson Bus Lines, Minnesota, 
understands that. I see it in the faces of the people literally 
starting to cry in an event at the Moorehead Bluestem 
Amphitheater as they talked about the Merle Haggard concert or 
see it in the face of Dayna Frank, who heads up First Avenue in 
Minneapolis, as we stood in front of that iconic star of 
Prince, knowing that he and so many other artists across this 
country could not have gotten their starts without 
entertainment venues.
    And I think we all know that you cannot go stand in a 
moshpit in the middle of a pandemic. I think you know you 
cannot sit elbow to elbow in a small theater, whether it is in 
a big city or a little town. And so many of these venues are 
literally the heart of our communities. They are the place that 
people go.
    And since we are quoting a lot of things, we do not want to 
be the Congress that lets the music die, and we do not want 
this to be the year that we let our cultural icons die.
    So with that, Senator Cornyn and I have introduced this 
bill. We are working really, really hard to get it in the 
relief package. We are feeling good about the work that is 
going on. There still have to be some changes made.
    I am also a big fan and cosponsor of the RESTART Act that 
you just spoke to, as well as the CERTS Act involving the bus 
lines.
    And again, I just want to remind our colleagues--and I know 
they know this or we would not be doing this hearing--thank you 
to Chairman Moran and Ranking Member Blumenthal--if it was not 
for that understanding, that not every industry--tech 
companies. Man, they are doing great. But so many of these 
small venues are not.
    And so my question I guess of you, Mr. Hartke, with your 
cool drum set over there in Wichita is just could you explain 
how it will be really hard to bring back these venues. It is 
just like you cannot snap a finger and they are going to be 
able to come back with your low margins if we let the music 
die.
    Mr. Hartke. Yes. I mean, many of our venues have taken 
generations to build, as I told an example of The Cotillion in 
Wichita. You know, especially in smaller markets like Wichita, 
this is an ongoing effort that is passed on from generation to 
generation. To get the acts to come to Wichita, Kansas has been 
the work of many, many decades of people.
    So, you know, not only that, but to get the spaces that are 
appropriate for hosting music--I mean, you mentioned First 
Avenue. I mean, that is a magical place. There is not another 
space like that in the world. So if you lose a First Avenue, it 
is going to be nearly impossible to replicate that. You cannot 
just go into any warehouse and set a stage in it and it has 
that magic. And that is true of The Cotillion in Wichita and 
Cain's Ballroom in Tulsa, and all these venues across the 
country that have been there. Even if they are not historic, 
the new venues like Wave--I mean, it has a certain theme to it.
    Senator Klobuchar. Mr. Hartke, we have limited time, and 
Senator Blumenthal was so kind to give me this time early on.
    Could you talk about how it was hard enough for your venues 
being independent venues, so many of you competing, as we have 
seen more and more consolidation with some of the big guys in 
the industry? To me, the pandemic has simply put a magnifying 
glass on this problem. We are not going to talk about antitrust 
here, as I look at Senator Lee and Senator Blackburn and 
Senator Blumenthal, all involved in this issue. But could you 
talk about how it is hard to get by right now anyway without 
the pandemic?
    Mr. Hartke. Yes. The live music industry is increasingly 
difficult due to the consolidation of the industry, and mom and 
pop businesses are fighting tooth and nail to ensure they still 
get the shows and are able to route tours to the cities. And it 
is hitting secondary markets just as hard as it is hitting 
major markets.
    Senator Klobuchar. OK, very good.
    I think I will end with you, Mr. Strickland. Just words for 
us as we go into these next few days when everyone is waiting 
for a result from this Congress to be able to do a package at 
the end of the year. Any advice?
    Mr. Strickland. Again, consider the humanomics. There are 
10-plus million people holistically across this entire industry 
doing nothing. I want to reiterate that. We are not like 
restaurants or gymnasiums or hair salons that open and close 
and have a chance to do something. We are doing nothing. Right 
now, 97 percent of the people are either unemployed or under-
employed. Can you imagine being a dental assistant and not 
being a dental assistant for 18 months and having to go work at 
Home Depot? That is what has happened. You have got a lot of 
really talented people. And we do this in the live event 
industry for one reason: we love it, for the love of the game, 
for the love of the music. And we have got entertainment and 
event people scattered across the landscape working at Home 
Depot and Amazon, and it is so crushing. As an industry--not 
just venues--as an industry we will not come back if we do not 
receive relief because the RESTART style relief is the only 
thing that we have. We cannot go get a commercial loan.
    Senator Klobuchar. Thank you so much.
    Senator Moran. Next is Senator Blackburn.
    But lyrics, Senator Klobuchar. I was thinking of the 
Wichita Lineman. The line is: ``And I want you for all time, 
and the Wichita lineman is still on the line.'' So keeping 
these folks in business is an important component.
    Senator Klobuchar. Very good. Thank you.
    Senator Moran. I want to keep up with you and your lyrics.
    Senator Blackburn.

              STATEMENT OF HON. MARSHA BLACKBURN, 
                  U.S. SENATOR FROM TENNESSEE

    Senator Blackburn. Yes, and there is a neat story behind 
how that song was written and how it came to be Wichita. And in 
Nashville we say everything begins with a song, and indeed it 
does.
    And to our witnesses today, I want to thank you for being 
available to us.
    To Chairman Moran and Chairman Wicker, thank you for 
working with me and my team so that we could have this.
    The live entertainment industry is vitally important to us 
in Tennessee. It is a complete sector of our state's economy. 
It is not just an add-on. It is not something that is just 
there for the fun of it. It is the music business.
    And I appreciate what Senator Klobuchar has done with Save 
Our Stages--and she and Senator Schumer and Senator Blumenthal. 
And that really is the front-facing part of the industry. That 
is what you see when the curtains open. That is what you see in 
the videos on stage in these venues. That is great. And we want 
these venues to thrive.
    However, in order to make those shows appealing and 
exciting and to keep these venues open, there is an entire 
behind-the-curtain that takes place. And full disclosure, in 
the mid-1990s I led the Tennessee Film, Entertainment, and 
Music Commission. That is when I got to know many of the folks 
that drive the buses and the motorcoaches. It is when I got to 
know the caterers and those that are grips and gaffers. And it 
is when I got to know Mr. Strickland and appreciate what Bandit 
Lites does.
    But this sector of the industry does not benefit from what 
will be passed in Save Our Stages. And to my colleagues on the 
other end of the dais, this is why we need you to work with us 
so that the support system that makes those venues work is able 
to stay live, so that they are able to participate because 
right now, I have a lot of friends and neighbors in Nashville 
that they basically go out and crank the motorcoach every week 
to be sure that the things are still going to be operational. 
They go through and they check the catering equipment. They go 
through and they check the equipment that is sitting in the 
warehouse waiting for the lights to go back on on these stages 
so they can gear back up. And right now, there is no avenue for 
them.
    They did nothing wrong. And I think this is an important 
thing to realize. These folks that support live entertainment 
did nothing wrong. They did not cause this. But when the 
pandemic hit, when the economy got shut down, they went from 
running wide open to a dead stop overnight. That was it. I 
talked to people that were on tour buses. They turned the tour 
buses around on the interstate and headed back to Nashville. 
They did not go to the next stop. They boxed up equipment and 
they sent it back to Knoxville. So it is important to realize 
they do not have another source.
    And, yes, Save Our Stages is good but you got to have 
something to save the stage with and it is the support network.
    So let me do this. I am running out of time. You know, we 
are so determined to help with this industry. Mr. Strickland 
and Mr. Hartke, let me come to you with my question. Talk to me 
about what the next 6 months is going to look like for this 
industry and how you think you are going to be able to recover? 
So, Mr. Strickland, you first.
    Mr. Strickland. Thank you, Senator Blackburn.
    I have a degree in business from the University of 
Tennessee, Haslam College of Business. Even Wharton College of 
Business does not teach one how to run a business for 18 months 
with no money. It is just simply not taught.
    To answer your question and the biggest point here is the 
industries, the companies, and the people within these 
industries--we are not almost out of money. We have been out of 
money. 30 percent of our industry is gone now. If nothing is 
done by February, 60 percent of our industry will be gone. 60 
percent of the people will either be unemployed or doing 
something else. We simply, as you so eloquently stated, Senator 
Blackburn--we have no alternative. If the Federal Government 
does not step up with a RESTART-style relief for small business 
in general but for the live event space in particular, we 
simply have no alternative and the companies will all be 
shuttered.
    Senator Blackburn. Mr. Hartke.
    Mr. Hartke. Without the Save Our Stages Act passing 
immediately, we will not last 6 months. We will not be here for 
a recovery period. It is as simple as that. With a relief bill, 
then we will get back to work and we will hire staff back and 
we will start planning for a reopening. But without it, we will 
not be here.
    Senator Blackburn. Thank you.
    Thank you, Mr. Chairman.
    Senator Moran. Thank you, Senator Blackburn, for your 
leadership on this issue.
    Senator Blumenthal.
    Senator Blumenthal. Thank you, Mr. Chairman.
    Let me say, first of all, to Mr. Pantuso, I really 
appreciate your being here. The transportation, the motorcoach 
industry is often overlooked in its importance to our economy. 
I recently visited the DATTCO company in New Britain, 
Connecticut. It is a family run motorcoach school and school 
bus operator, a third generation, and it is vital to our 
economy, as are the companies that you have reflected in your 
remarks. So I am so glad that you are here.
    Let me ask Mr. Fay a question because I think that, Mr. 
Fay, you have brilliantly outlined the ecosystem that is at 
stake here. Senator Blackburn referred to a part of it, but it 
is also the small clubs, the sources of the talent that 
eventually reach The Bushnell and Broadway. It is also the 
restaurants that are providing service to patrons of The 
Bushnell when they go there. The Bushnell is the type of 
community anchor that will show the Lion King musical one 
evening and a political debate the next. They also run 
innovative community-based programming that brings art and 
literacy to countless inner-city children.
    What I would like to know from you is some examples, number 
one, of those smaller institutions that depend on The Bushnell 
and theaters and venues like it and also the timeline that is 
necessary for you to have a production on your stage. You 
cannot just snap a finger and have it overnight. It takes 
infinitely difficult planning. And if you could speak to that 
issue and the smaller parts of that ecosystem that depend on 
you.
    Mr. Fay. That is a good question.
    First of all, let me address the second one first, and that 
is, it has been already pointed out that getting started, 
restarting this business is going to take the entire country 
opening up and in a way that we can really open to full 
capacity. We have explored, as others have, over the last 
several months the ability to do smaller performances at 
different times, but they just do not work.
    But one of the biggest problems with that is our public is 
frightened, and until the vaccine is out and really takes 
effect, even after that it is going to take months and months 
for our public to decide that it is safe for them to come back 
and that they are comfortable doing it. Patterns of behavior 
have changed dramatically. And another 6 months of this is 
absolutely something we are facing. To come out of that, it is 
going to take many, many months. It is probably going to take 2 
or 3 years for us to really come out of it. So being in a 
position to open is critical.
    The challenge of the small businesses around us that we 
participate with and work with all the time is very real. There 
are six or seven major restaurants that have closed in downtown 
Hartford since we opened.
    One of the other aspects of this is as a result of all the 
work from home and the digital working, there is a real concern 
that, on the one hand, businesses will never repopulate the 
downtown area with as many employees. The work from home is 
probably going to become a part of our economic process and 
businesses in the future. As a result, there will be fewer feet 
hitting the street at 5 or 6 o'clock in the evening. We are 
going to be one of the real major features of trying to bring 
people back to the downtown area in the evening, as we were 
back in the 1970s and 1980s when we started trying to rebuild 
these cities. So that aspect of it is frightening for our own 
mayor who has expressed his concern that we be alive and 
thriving as soon as possible to pull people back into our 
downtown.
    You mentioned how our venue and others do more than just 
concerts. There are all kinds of events. Hartford Hospital 
raises over $1 million a year, an event that they do in our 
theater on the various stages that we have. The smaller clubs--
the Infinity Hall, 450 seats, a beautiful space, doing 
tremendous business under new ownership, and all of a sudden, 
after 6 months of their new ownership, shut down.
    So it all works together. There is an ecosystem that is in 
a delicate balance. And every one of the people who has 
testified today represents a significant part of that 
ecosystem. If any part of it falls apart, then the whole thing 
kind of crumbles.
    So we will rebuild but it could be decades to rebuild if we 
do not get this help now.
    Senator Blumenthal. Thank you, Mr. Fay.
    My time has expired, but I just want to thank you and all 
of the venue operators. I have been to that Hartford Health 
Care benefit. I am a regular. I have also been to The Bushnell 
in the last couple of months when it has been empty, and there 
is nothing so heartbreaking and gut-wrenching as an empty 
theater, as a venue like yours that is so full of life and 
laughter and the kinds of performances that really make 
memories for people when we know it will take months and maybe 
as long as a year, as you have said, to reopen. And the 
Hartford community really depends on The Bushnell and other 
venues like it as an essential piece of the economy but also 
our culture.
    So thank you very much, Mr. Chairman.
    Senator Moran. Senator Blumenthal, thank you.
    Senator Lee.

                  STATEMENT OF HON. MIKE LEE, 
                     U.S. SENATOR FROM UTAH

    Senator Lee. Thanks, Mr. Chairman.
    Thanks to all of you for being here.
    The COVID-19 pandemic has turned everyone into a state of 
disarray. It has been hard on so many industries. Basically 
every aspect of our economy has been harmed by it. It has 
devastated businesses of all shapes and sizes from the food 
industry, manufacturers, travel and tourism, energy and 
transportation, just to name a few. So today's hearing with the 
live entertainment industry is important.
    Luckily with the approval of a COVID-19 vaccine and 
hopefully more approvals yet to come, along with an effective 
distribution chain for those vaccines, I am guardedly 
optimistic that we will soon find ourselves coming into or at 
least able to see a better outcome in the coming year.
    While I am confident in our logistics networks and our 
ability to swiftly transport the vaccine, we know that it is 
going to take some time before all Americans are going to have 
access to it. And today's hearing acknowledges that there is 
still a lot left to be done as we consider the full economic 
impact of the pandemic and the government's response to it and 
as we carefully consider alternatives that we have, solutions 
that not only provide funds but also ensure a smooth trajectory 
toward reopening and a swift bounce back to normal, which is 
what we all crave.
    But the live entertainment industry has certainly suffered 
very severe economic harm during the pandemic, and I am glad 
that we could hear your testimony today.
    So with the vaccine on its way, now seems like a good time 
for us to address policy solutions of every stripe that we can 
imagine to help facilitate that smooth transition back to 
normal. Federal regulations, bureaucracy, Federal rules put in 
place by Executive Branch agencies can be one of many things in 
an economy that can slow things down. And it is especially 
important right now, in addition to considering the funds that 
have been appropriated and may yet be appropriated, for us to 
also look at ways in which we could get government to not do 
things that it might otherwise do that might be harmful and 
that might slow down a return to normal.
    So I was wondering if each of you could just identify--is 
there any regulation that Congress ought to be aware of, that 
Congress ought to be looking at carefully in such a way that 
could help restore your transition to normal? We will start 
with you, Mr. Strickland.
    Mr. Strickland. If I might chime in. Thank you, Senator 
Lee. A great question. It goes a lot of different directions.
    The 500-pound gorilla--and I hesitate to mention it--is the 
liability indemnity situation. Unless and until there is 
something dealt with on liability indemnity, all of the live 
events business is at risk. Let us assume that we in one way or 
another resolve the financial struggles and issues. If the 
liability situation is not resolved in a manner such that class 
action lawsuits are not rampant, then you will find very few 
venues, promoters, artists, cities, states that will want to 
put on a large-scale event.
    Let us go to Garth Brooks, a client of mine. We have three 
sold-out 100,000-person stadium shows from last year that we 
have moved to this year. We want to do a lot more of those. 
100,000 people in a football stadium with no liability 
protection is a class action waiting to happen. You will find 
5,000 people that will join a class action.
    So legislatively and administratively, that is probably the 
next big issue. And as I tell people why did I bifurcate 
financial relief from liability indemnity, I learned from 
watching what has gone on in Congress for the last 9 months 
that we keep getting back to liability indemnity as a sticking 
point. So I find it imperative that we resolve the financial 
issue first to allow the live event industry to survive and 
then we start drilling down and looking at what we can do about 
liability indemnity.
    Senator Lee. There are those who say states can handle that 
fine on their own. We do not need a single Federal standard. 
What is your response to that?
    Mr. Strickland. It absolutely will not work and here is the 
reason. As other people have referenced today, our industry is 
reliant largely on what we call a tour, which is when a large 
band goes to, in most cases, all 50 states and does shows. And 
if you have a patchwork situation where you cannot play in 
particular states because it is a hazard or because the rules 
are different, you will never be able to book a tour. And when 
you cannot book a tour, which is the backbone of the live event 
industry, then suddenly you are stuck with no ability to mount 
large-scale tours such as Garth Brooks or the Rolling Stones or 
U2. But even when you work down to the smaller level, the 
smaller acts will not be able to work until there is a singular 
fit.
    Now, it has been suggested, as you all I am sure know, 
flood relief falls back on the Federal Government simply 
because there is no insurance agency, years ago, that would 
step up and take that. There probably is some kind of a work-
out whereby a situation like the flood relief becomes the 
pandemic relief. But again, I would leave that to those of you 
in Congress to figure out the details.
    Senator Lee. Thank you.
    Mr. Chairman, I see my time is expired. Thanks so much.
    Senator Moran. Senator Lee, thank you.
    Senator Sinema.

               STATEMENT OF HON. KYRSTEN SINEMA, 
                   U.S. SENATOR FROM ARIZONA

    Senator Sinema. Thank you, Mr. Chairman.
    I ask unanimous consent to enter into the record a letter 
from the Endurance Sports Coalition.
    Senator Moran. Without objection.
    [The information referred to follows:]
    
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
    

    Senator Sinema. Thank you, Mr. Chairman.
    And I want to thank our witnesses for their testimony on 
this important topic.
    Arizona has a vibrant entertainment economy that creates 
thousands of jobs and provides Arizonans with opportunities to 
enjoy art, theater, and music and sports. These numerous 
entertainment options also draw tourists to Arizona, in 
addition to our excellent weather and our stunning landscape.
    Nationwide 85 percent of the live entertainment industry 
has been furloughed. I am hearing daily from Arizonans and 
Arizona small businesses in the entertainment industry that are 
struggling to stay afloat as our venues are closed or strictly 
limited due to the pandemic.
    I am proud to be a cosponsor of the Save Our Stages 
legislation and the RESTART Act, both of which can provide 
necessary assistance to the entertainment industry. The Save 
Our Stages bill will provide $15 billion to support independent 
clubs, theaters, concert halls, and movie theaters that meet 
certain criteria. The RESTART Act includes a new loan program 
to support businesses that have taken a substantial revenue hit 
during the COVID-19 pandemic.
    As the bipartisan COVID discussions continue, I will 
continue to encourage my colleagues to provide assistance to 
Arizona's entertainment industry.
    My first question is for Mr. Strickland. The sports and 
live athletics industry has struggled during the pandemic. I 
was looking forward to many races and events this year, such as 
the Boston Marathon, that were canceled or made virtual. When a 
large event like a marathon is canceled, it is not just the 
participants who are disappointed. The vendors who provide 
services for those events are also out of work.
    I understand that your company has provided lighting for 
many live athletic events, including races like the Country 
Music Marathon and the National Rock and Roll Marathon. From 
your perspective, how would the RESTART Act help companies like 
yours that provide services to marathons, triathlons, or 
similar events?
    Mr. Strickland. Thank you, Senator. I appreciate that.
    You are very correct. We have moved into what I call the 
less sexy side of the live event business. When you are doing 
sound and lights and production for a foot race or for a 
baseball game--I was once involved with SkyCam, the flying 
camera system. When you are doing those kind of things, it is 
not anything sexy. It is not anything that is obvious that 
anyone wants to talk about, but it is very vital. And indeed, 
as we sit here today, the cameras, the microphones, the folks 
working this stuff today are part of the live event ecosystem. 
They are part of the 3 percent that is working.
    So sports are near and dear to my heart. I sit on the Board 
of the Women's Basketball Hall of Fame. One of my mentors was 
the late Pat Summitt. They are struggling mightily, and again, 
they are sort of part of the lost set of people that you do not 
realize are infected by that. And these are again people that 
RESTART holistically allows the largest number of people to 
survive. And to quote the gentleman that founded Maryville 
College in Tennessee, ``do the most good on the largest 
scale.'' That is what we need to do. I do not think that 
Congress intends to pick winners and losers, and I think that 
by passing a holistic bill like RESTART with a high revenue 
loss trigger, you would allow those devastated businesses, 
including those in the sports sector, to survive.
    Senator Sinema. Thank you.
    My next question is for Mr. Hartke. An 87-year-old family 
owned chain of movie theaters based in Phoenix, Harkins 
Theaters, has experienced a 95 percent drop in revenue since 
the pandemic began. Harkins' CEO described the difficulty of 
making payroll, rent, tax, and utility payments without taking 
in revenue. I am told that Harkins' patrons are so eager to 
support the business that they are buying the movie theater's 
popcorn to go.
    Other Arizona independent venues are expressing the same 
concerns. For example, the Rhythm Room, which is an R&B venue 
in Phoenix, is supposed to celebrate its 30th anniversary next 
year, but last week they put up a gofundme page because they 
are in danger of closing after 9 months without revenue.
    I understand that you and your wife co-own two live music 
venues. From your perspective, which aspects of the SOS Act are 
essential to supporting our independent theaters and music 
venues?
    Mr. Hartke. Thank you for that question, Senator.
    You know, we love the SOS Act because that focuses on the 
small mom and pop businesses, independent venues. And, you 
know, this ranges from venues of 250 capacity to 18,000 
capacity. Actually here in Kansas we have a member that is 40 
capacity that is an independent venue, and we also have an 
18,000 capacity at Providence Medical Amphitheater. It also 
includes nonprofits. It includes for-profits, and it includes 
publicly-owned venues. So we cover the gamut with the bill 
which is first and foremost to us and those within our 
industry.
    Beyond that, it has a flexibility on spending. Payroll is 
not our biggest expense, so we are able to pay our bills that 
we either have not paid or need to pay now. And then it gives 
us a little bit of time that we can persevere this 18-month 
foreclosure.
    Beyond that, it is a grant. It is not a loan. Many of us 
are highly leveraged. You know,
    [inaudible] just the nature of our business. So we have 
grants or we have loans out on our businesses already. So 
taking out a loan is not what people really want to do right 
now or they have already exhausted that option.
    So those are kind of the main points.
    Senator Sinema. Thank you.
    Mr. Chairman, I see my time is expired. If there are no 
other members, might I ask one more question to Mr. Hartke?
    Senator Moran. There are other members, but go ahead and 
ask.
    Senator Sinema. You are very kind, Mr. Chairman.
    Mr. Hartke, one final question for you. In 2019, the Rialto 
Theater in Tucson hosted over 400 shows throughout the year. In 
2020, they only had 68 shows, and every single one of those was 
before March 12. They used to employ 106 staff, but they have 
not opened their doors to the public in 9 months.
    Similarly, the owner of Rebel Lounge in Phoenix--his club 
has been closed for months, and he told us that the PPP program 
did not work well for his business.
    You shared the same experience in your testimony. Can you 
tell us why PPP did not work for you? And did you have access 
to the EIDL programs or any other access to capital?
    Mr. Hartke. Yes. And the PPP loan did not work, A, for the 
amounts. 2.5 times payroll was not sufficient for an industry 
that has been closed for 9 months, and we have another 9 months 
at a minimum ahead of us before we can get back to work. 
Payroll is not our biggest expense. I think Pete mentioned that 
earlier. We paid 75 percent as originally stipulated into 
payroll, and many of our employees did not have a lot of work 
to do since we were fully shuttered. So those two are the 
biggest components of why PPP does not work.
    Additionally, it is a loan. We are trying feverishly not to 
draw more debt.
    Senator Sinema. I appreciate that. Thank you, Mr. Hartke.
    And, Mr. Chairman, thank you for your indulgence. I 
appreciate it.
    Senator Moran. You are welcome, Senator Sinema.
    Senator Young.

                 STATEMENT OF HON. TODD YOUNG, 
                   U.S. SENATOR FROM INDIANA

    Senator Young. Thank you, Mr. Chairman.
    And thank you to our witnesses.
    Every person, business, and industry has been impacted by 
this pandemic, but there is no question the live entertainment 
industry has been hit especially hard.
    Mr. Strickland, in your testimony you touch on the fact 
that $877 billion is the size of the live entertainment 
industry hole right now. It has earned zero income since mid-
March.
    Yesterday we saw the first shipments of COVID-19 vaccine 
delivered to hundreds of disbursement centers across the 
country. That, of course, is very encouraging. It is going to 
provide light at the end of the tunnel to help the American 
people and businesses of all kinds. However, the live 
entertainment industry inherently relies on large crowds to 
operate, leaving the industry in a particularly vulnerable 
place far beyond the first wave of vaccinations. So it is going 
to be a while before the industry can really recover.
    And it is not just sports and entertainment venues and 
field houses and so forth. We have a lot of those throughout 
the State of Indiana, many iconic ones. But there are small, 
medium, and large businesses across the country that make up 
the massive supply chain that keep this industry chugging 
along.
    I think you and I have discussed Tyler Truss Systems. It is 
a company based in Pendleton, Indiana that I visited. In March 
2020, they had 72 employees and were actively looking to hire 
more Hoosiers. Today, their picture looks a lot different, just 
months later. They are down to, after two rounds of layoffs, 
less than 20 people.
    Melrose Pyrotechnics. It is a fireworks company based in 
Kingsbury, Indiana. I have spoken to their owner, and they have 
been forced to lay off 75 percent of their employees.
    So it is vital we take necessary steps to support the live 
entertainment industry and small Hoosier businesses like 
Melrose and Tyler Truss during this unprecedented public health 
crisis, and there are additional measures, of course, needed to 
do that.
    I want to thank Chairman Moran, who is chairing this 
subcommittee hearing, for becoming the 60th cosponsor of my 
RESTART Act which I do believe would provide the requisite 
solution to the challenges your industry is facing and other 
very hard hit industries in the midst of this global pandemic 
and subsequent government measures that disrupted industries 
like your own. I feel like there is a moral imperative for us 
to act in response.
    My RESTART proposal would target our limited resources to 
help those hard hit businesses and provide flexible loans to 
help employers with a broad set of operating expenses instead 
of the heavy focus on payroll costs. This is especially 
important for those who cannot maintain full payrolls due to 
significant and sustained loss in revenues.
    Mr. Strickland, can you discuss why it is so important to 
restructure the PPP program to focus more on revenue rather 
than payroll retention like my RESTART proposal would do and 
its benefit to your industry?
    Mr. Strickland. Thank you, Senator Young. A great question.
    Senator Young and I did not know each other 9 months ago, 
and we know each other fairly well now.
    I wish it were like Baskin-Robbins and I wish we had before 
us 32 options of what small business in general but the live 
event industry in particular could do to survive. But we do 
not.
    I only really see one option and that is RESTART, which 
Senator Young and Senator Bennet authored. It is important 
because it will give you, as written, 45 percent of your 2019 
income. You can use it all for operations and overheads and 
basically keeping the lights on or you can use some of it for 
payroll and payroll-related expenses which will be forgiven, 
and then the rest will convert to a loan.
    As I said earlier, it is very, very important that we be 
able to use a vehicle like this because no one--and I mean no 
one--in the live event space today has the ability to secure 
the Main Street Lending Loan or a commercial loan. The banks 
have turned their backs on us, and we understand that. As I 
said earlier, we do not have a balance sheet. We do not have a 
P&L. We do not have an income stream. We have nothing that is 
bankable. We cannot get a loan. We are literally here with our 
hat in our hand begging.
    Senator Young. And Congress should help you out. Frankly I 
am very frustrated that we have not helped you out. Again, a 
government mandate for understandable and I think appropriate 
public health reasons is one of the main reasons that your rank 
and file workers are hurting, and they deserve some help.
    You know, if we believe in institutions--conservatives are 
supposed to believe in institutions. Government is one of those 
institutions, and government should be there during a time of 
emergency to help people, to help ordinary Americans or they 
are going to lose faith in government and government leaders.
    With your indulgence, Mr. Chairman, I just have one other 
line of inquiry. It will not take long.
    Last month during a House Financial Services subcommittee 
hearing on pandemic insurance, several committee members 
indicated that Congress should wait until the current crisis is 
over before contemplating a program to address any future 
occurrences.
    This is for either you, Mr. Strickland, Mr. Laffitte, or 
each of you. What are your thoughts on the development of a 
Federal pandemic insurance program that might provide coverage 
for your industry in the event of a future government-mandated 
shutdown due to another pandemic or another national crisis? 
Because, you know, word on the street is because of a number of 
different factors, our increased globalization and the change 
in the atmosphere, many other factors, trade patterns, this is 
not going to be the last pandemic that this or future 
generations, living generations, will face. So what are your 
thoughts about that insurance model?
    Mr. Strickland. As I stated earlier, we cannot purchase 
insurance. We cannot purchase liability protection. We cannot 
purchase pandemic insurance. It simply is not offered, and we 
understand that. Insurance companies are not interested in it. 
So the only feasible solution that I see is what I mentioned 
earlier, a program not unlike the Federal flood insurance 
program where the Federal Government stands in between disaster 
and the affected businesses. As to what that would look like, I 
would model it after the flood insurance program.
    Senator Young. Thank you very much.
    Mr. Laffitte, anything else to add, sir?
    [No response.]
    Senator Young. OK. I yield back, Mr. Chairman. Thank you.
    Senator Moran. You have nothing to yield back, but thank 
you, Senator Young.
    Senator Rosen? Senator Rosen, are you with us? Senator 
Rosen?
    [No response.]
    Senator Moran. Senator Cantwell.

               STATEMENT OF HON. MARIA CANTWELL, 
                  U.S. SENATOR FROM WASHINGTON

    Senator Cantwell. Thank you, Mr. Chairman, and thanks for 
holding this important hearing.
    And to the witnesses and for people participating, I want 
to thank thousands of the independent artists and venues who 
have worked so hard to try to communicate this issue. 
Obviously, in the State of Washington, when you are talking 
about organizations like the Foo Fighters and the Dave Matthews 
Band, Macklemore, Pearl Jam, and many others, you can see that 
music is a pretty big and important issue to the State of 
Washington.
    I want to thank our colleagues, Senator Klobuchar and 
Cornyn, for their work on legislation. And I was pleased to see 
there is bipartisan support in a stimulus package, but we have 
a long way to go to making sure that all becomes a reality.
    A survey by the Washington Nightlife Music Association 
found that without relief, 63 percent of our state's 
independently owned clubs would have no choice but to 
permanently close. You guys have been talking about many of 
those issues and what happens. Even in Spokane, the Pin, a 
staple of the music scene there, closed its doors, and 
independent venues like Spokane Arena, the Knitting Factory, 
Martin Woldson Theater, the Fox, and many others are impacted 
by these closures and looking for relief.
    So when I hear these comments this morning and our 
colleagues, you would think this would just be a slam dunk, if 
nothing else, just go ahead and pass legislation for us, those 
38,000 Washingtonians, about a $2.4 billion music industry 
overall. So we do not want to see permanent closure because it 
is very hard to start these again.
    We have been talking a lot about the problem, but you could 
give us, any of the witnesses, some real life examples of what 
people are struggling with right now? I mean, so much of our 
state--they have been trying to hold on. They have been trying 
to hold on and trying to hold on because they know closure 
means probably permanent closure. But could you give us some 
examples of what people are trying to do just to hold on?
    Mr. Strickland. Yes. Thank you. A great question.
    And to bring up about the great State of Washington, I was 
involved in an endeavor September 1st called Red Alert Restart, 
where we lit all the buildings red across the Nation. The band, 
Pearl Jam, from Seattle made magic--thank you very much--in 
Seattle. I cannot give them enough kudos. They reached out to 
me and then they went to work and turned Seattle red beginning 
with the Space Needle and flowing from there.
    I have a 1.2 million person e-mail chain. I receive calls 
and letters and texts. To answer your question, 30 percent of 
the businesses have closed. We are not having a conversation at 
this moment about what might happen. We are having a 
conversation about what has happened and what is happening and 
what will continue to happen.
    The smaller companies and what we now call the gig 
workers--those people have already shifted out of this space, 
and they are now working at Amazon or somewhere else. They have 
left the industry that they love, some never to return. We 
anticipate 20 to 30 percent will never return to this space. 
Some of the smaller companies have shuttered and folded and 
lost all of their assets through auction, and of course, that 
money does not go to them.
    So I wish I could give you a story of happiness and how 
people have been able to survive, but the simple truth is no 
one is surviving. They are failing daily. And we are not at the 
edge of the cliff. We have gone over the cliff. And like the 
cat in the cartoon, most of our industry is hanging on by a 
thread.
    Senator Cantwell. That is exactly what I wanted you to 
illuminate. So thank you for doing that.
    We have got to get our colleagues to understand we need to 
act now on this legislation. Thank you.
    Senator Moran. Senator Cantwell, thank you for joining us.
    Let us see if Senator Rosen is now available.

                STATEMENT OF HON. JACKY ROSEN, 
                    U.S. SENATOR FROM NEVADA

    Senator Rosen. Here I am. Can you hear me this time?
    Senator Moran. Yes, ma'am. Senator Rosen.
    Senator Rosen. There you go. Technology is great when it 
works. Sometimes that microphone gets you. But thank you.
    And I want to thank all the witnesses for being here and 
for what you are doing across the country and in your 
communities.
    So most industries are continuing to experience challenges 
due to the COVID-19 pandemic, but the live events industry has 
been amongst the hardest hit. Live events are a major draw to 
my home State of Nevada, and they help drive our State's 
tourism economy. Nearly half a million jobs are part of our 
live event and tourism ecosystem.
    Unfortunately, Nevada's once vibrant live events community 
is now struggling. Performers, support staff--they have seen 
their work come to a complete halt as venues are not able to 
open during the pandemic.
    There is no doubt that Congress needs to provide targeted 
financial assistance to the live events industry, as you have 
all been speaking to today, and I will continue to be 
supportive of those efforts.
    But to revive the live events economy, aid cannot merely be 
a one-time cash infusion. As we look to the future of safely 
operating and increasing capacity at live event venues, we will 
also need to implement creative and innovative solutions to 
help those venues and other businesses reopen and give the 
public just more confidence to go back into these indoor 
spaces.
    So given that live event venues depend on large in-person 
gatherings, I am going to ask three of you to talk about this. 
But can you first talk about the importance for both safety and 
consumer confidence that we provide businesses with all 
funding, lots of funding for PPE and the technologies that make 
indoor activities safer for workers and the public?
    And could you speak more specifically to--if your 
businesses or businesses that you work at have upgraded their 
HVAC or their air purification, any of those technologies that 
improve the air that we breathe? As we know that we do that, we 
can mitigate the spread of COVID-19 through the air.
    So let us begin with Mr. Hartke and then Mr. Strickland and 
then Mr. Fay, please.
    Mr. Hartke. Thank you for the question, Senator.
    We are definitely in a whole new world now, and we are 
rapidly learning what that means to our industry.
    And the answer is yes. Safety is the number one protocol in 
our industry. I mean, we are an industry that gathers a large 
group of people together, and so inherently there are numerous 
things pre-COVID that we had to plan for and now this is just 
another layer of that. So safety first is always a big priority 
for live events.
    With that, some have invested in their air purification 
systems. Some simply do not have the funds to do it. But it is 
part of everybody's plan to take the steps necessary to ensure 
that the public is safe when they return to live events.
    Senator Rosen. Thank you.
    Mr. Strickland?
    Mr. Strickland. Yes. Thank you, Senator Rosen.
    Las Vegas, not unlike New York, California, and Nashville--
you mentioned to begin with the economic impact. It is broader 
than the economic impact purely on the live event industry 
because when you bring a live event, as you know, certainly to 
Las Vegas, you generate hotels and restaurants and taxis and 
airlines and all the ancillary businesses. So the effect is 
far-reaching in all 50 states. When you do not have events, 
everyone suffers, and we are seeing that now.
    But moving to the safety side, you have got two conditions 
to look at. You got the medical condition, which is vaccine-
related and exactly how the vaccine does or does not work and 
what the outcome from the vaccine is. We will plan for the 
worst and hope for the best.
    So let us assume that the vaccine works and is safe. We 
then move to the social or the human condition. How safe will 
people feel? How much will you want to go and see a show? That 
is an answer that 340 million people will answer one at a time.
    Now, we do have a lot of information telling us that there 
is a high degree of confidence. As I shared earlier, we have 
three sold-out Garth Brooks stadiums, and we have had literally 
no requests for refunds. The same thing can be said for a 
number of other large events next year. The refund rate at this 
moment is very low. So that indicates to us a high degree of 
consumer confidence. Having said that, let us discuss that 
question after the first event is held.
    Senator Rosen. Thank you. I see my time is just about up, 
and I would like to submit some questions for the record and 
talk more about our air purification systems, how we support 
that so people can feel confident to go back indoors to our 
wonderful venues. Thank you.
    Senator Moran. Senator Tester, I believe you are cleaning 
up.

                 STATEMENT OF HON. JON TESTER, 
                   U.S. SENATOR FROM MONTANA

    Senator Tester. I do not know about cleaning up, but 
anytime I can get on a committee that is chaired by Senator 
Moran, I am there. So thank you, Mr. Chairman.
    Look, I came to this late because we have a bunch of 
conflicts in the Senate, but I have heard talk about a number 
of bills that I am on, Save Our Stages, the RESTART Act, 
ENCORES Act. And I hear everybody saying the right thing. And 
by the way, while I am on this, if you are listening, Senator 
Young, I would be more than happy to work with you in a 
bipartisan way on liability insurance for these entities 
because I think Mr. Strickland is correct. These venues have 
unusual circumstances.
    But getting back to what I was going to say, I have heard 
people talk and I do not think anybody has said that you guys 
are full of BS. I think everybody that I have heard anyway has 
said we feel your pain. And I do not know if you guys are 
frustrated because we continue not to do anything, but it 
frustrates the hell out of me. You guys are sitting out there. 
You have been impacted by something that you do not have any 
control over. You can be the best business people in the world. 
You can do everything right, but yet you are getting submarined 
by this damn coronavirus.
    You know, I work with a number of folks in my state, Nick 
Shikota. I have had Shawn Lynch that put on their small venues. 
And by the way, Mr. Strickland, you are right. For every dollar 
spent in those small venues, it results in $12 of economic 
activity within those regions. So you are absolutely right. 
What you do impacts a hell of a lot more than just going to a 
concert.
    So from the five folks we have--or at least I see four. 
There is five on my agenda. Could you tell me what happens 6, 
8, 10 months from now to your business? Let us assume that the 
vaccine is good. Let us assume people go back to the concerts 
again. But we all know it is going to be 6, 8, 10 months. Your 
projections may be that or may be longer. I do not know, but 
that is the way I see it. Are you guys still going to be 
around?
    Mr. Hartke. Thanks for that question, Senator.
    Without help, no, we will not be around. We are at a cliff 
right now. We have been 9 months closed with no revenue and 
still all of our expenses. So without help, the independent 
venues will not last.
    If we do get help, then yes, by all means we will be around 
and we will put all of our effort into a recovery. And, you 
know, recovery is important. Our venues' involvement in 
recovery is super important for our local region because we are 
going to drive tourism. We are going to bring people back out 
to do things. But it is going to be a slow recovery. You know, 
we are going to have open to a reduced capacity just to see how 
everything works, and that is probably a 6 to 12, maybe 18-
month period where we are at severely decreased revenue.
    So not only does Save Our Stages Act help us survive now, 
which is our sole focus, but it also helps us with our 
recovery. And we all fully anticipate once we get through this 
and consumer confidence is back and the virus has been 
best[inaudible], then we are going to see a boom. The live 
music industry--I do not know about you, but I am real excited 
to go out and see a show right now, and I think a lot of people 
feel that way. But that is going to be down the road. That is 
not going to be immediate. So this not only helps us survive, 
but it helps us be a part of the recovery period.
    Senator Tester. Anybody else like to respond to that?
    Mr. Strickland. Yes, I would like to jump in if I might, 
Senator.
    That is the value in the RESTART Act. The value in the 
RESTART Act is very simply that it is a 7-year loan with no 
payments in year 1. That is critical. We will have no money in 
year 1 because if we got RESTART money late February, if we 
began in June or July, we are going to be broke. So in year 1, 
there are no payments. Year 2, interest only. Year 3 to 7, we 
amortize the note. We can live with that. That is a path to 
survival. If you gave us all $10 million tomorrow but payments 
began next month, it just would not work.
    Senator Tester. But if we do nothing, which it does not 
feel like we are going to do much right now from this Senator's 
perspective--and I hope we do. But if we do nothing, will you 
be in business?
    Mr. Strickland. No, sir. We disappear as an industry.
    Senator Tester. Anybody else want to talk about this?
    Senator Moran. Mr. Pantuso.
    Mr. Pantuso. Thank you, Senator.
    In the motorcoach industry, we want to be part of the 
solution. We want to be part of the recovery.
    In terms of how it relates to this hearing, a lot of our 
companies are already over the cliff. I saw a report from the 
Department of Transportation not long ago that showed that as 
many as 400 to 500 companies have lost operating authority, 
which essentially means they are closed.
    As business comes back, we want to be in a position to take 
people to those venues, to those stages, but we also know in 
the travel and tourism industry that we represent, that 
planning process takes a long, long time. We are going to 
continue to lose companies over the next 6 months until 
business starts to open up again. And that planning process in 
many cases to get people back on the buses and back on tours 
again or back to work in commuter scheduled service may take 
another year beyond that. So we need help now. We cannot wait 
another 6 months.
    Senator Tester. Right on.
    Well, look, I just want to say you guys have got to be 
going crazy. I mean, your livelihoods are on the line here and 
you look to have a Federal Government that has got your back 
and you look back and it is not there.
    I am going to continue--I will give you my personal word. I 
am going to continue to make sure that we try to get all three 
of these bills across the finish line. And I think the 
liability issue is a good one.
    But in the end, we have got to come together and we have 
got to help the economy. I talked to a good economist this 
morning. You guys are hurting. This economist says if we do 
nothing, we are going to go back into a recession and 
potentially a depression because we are not done with the worst 
part of this pandemic yet. And so I just think that the folks 
here in Washington, D.C.--and I am concerned about the debt 
too, but when you have challenges like this, you acquire the 
debt, keep the economy going, pay the debt off down the line. 
And I think it is really, really important.
    I want to thank you guys for being here, and I want to 
thank you for what you do because I think it is important for 
our society. So thank you.
    Senator Moran. Senator Tester, thank you.
    I would highlight for you in particular that I would be 
happy to be the Chairman of any committee that you are a member 
of, and we will see if that is the case come January.
    Senator Tester. Amen.
    Senator Moran. And, Senator Tester, thank you for sharing 
your frustration. I gave remarks on the Senate floor maybe 3 
weeks ago saying just because we cannot do everything, let us 
do what we can do. Let us do something. And then maybe a week 
or 10 days ago, additional remarks saying, well, we seem to be 
doing something but it seems to be so slow. Can we speed up the 
process? So let us figure out among our colleagues what we can 
do. There are some things that seem incapable at the moment, 
but that does not mean we should not do what we can agree on. 
And I think that is a wide array of options and particularly 
the legislation we talked about today. They seem to be things 
that we could do with broad bipartisan support, and we need to 
speed up the timeframe. As indicated today, these businesses 
are in jeopardy of no longer existing.
    We are going to conclude this hearing in just a moment, but 
I want to ask a couple of questions of Mr. Laffitte. Mr. 
Laffitte, earlier I mentioned the Paycheck Protection Program. 
It was the main relief program created by Congress to retain 
employees. In your experience did music artists utilize PPP and 
why or why not?
    Mr. Laffitte. Thank you for the question, Senator.
    The PPP program was a great program for as long as it 
lasted which, as you know and has been stated time and again 
today, it did not last long enough.
    I did have several clients who qualified and as a result of 
that qualification, we were able to take care of some of our 
road crew and essential workers who spent their entire lives 
literally doing nothing except going from tour to tour. Again, 
as you know, the issue here is the money has run out and there 
is no next tour.
    Senator Moran. Mr. Laffitte, tell me a little bit about the 
industry that you are involved in. How much of an artist's 
income comes from touring or performing on the road? 
Particularly for smaller artists, what form of Federal 
assistance would be most effective in helping those people?
    Mr. Laffitte. Again, thank you for that question.
    I would say anywhere from 70 to 90 percent of the income 
comes from live performance, particularly for the smaller acts. 
A big artist or a great songwriter could generate income 
writing songs through radio airplay and public performance of 
that music on the radio or television. That being said, most of 
the income today is earned on the road.
    And so what I would hope for as an artist manager would be 
to get help from Congress to help keep our workers alive. ERTC, 
PPP program being expanded, Save Our Stages being expanded. We 
need help everywhere. We are talking about an entire workforce 
that has nowhere else to go.
    Some of the people here are personalizing stories. One of 
my tour managers, who has been with us for 15 years, is selling 
a new beverage. He is going from convenience store to 
convenience store to just try to make ends meet.
    So, again bringing it back to solutions, please expand PPP, 
please expand ERTC, please expand Save Our Stages. There is a 
giant workforce from top to bottom that needs help. You know, 
the ticket taker at the small club has their needs. They need 
to put food on the table and keep a roof over their head. So 
does the usher at the big arena. We need to help everybody 
here.
    Senator Moran. Mr. Laffitte, you indicated that you 
support--please pass the SOS, Save Our Stages Act. Is there any 
points that you would highlight where that legislation falls 
short?
    Mr. Laffitte. My understanding is that Save Our Stages only 
covers about 30 percent of the venues that qualify. So 
obviously, the vast majority, 70 percent, of those are not 
covered. Again, I think we need to expand the scope. I think we 
need to get more venues qualified.
    Senator Moran. Thank you very much.
    I thank all of our witnesses for being here. It is my usual 
practice in hearings that Senator Blumenthal and I conduct to 
give any witness the opportunity to add anything to what they 
said or to correct anything they said, something that they 
misspoke. Is there any witness who would like to add anything 
to the record before we conclude this morning's hearing? Mr. 
Pantuso?
    Mr. Pantuso. Yes. Thank you, Senator.
    I would like to follow up on a question that Senator Lee 
had a little earlier about what can the Federal Government do. 
And I can give you one example. Right now, we are hearing from 
some of the national parks that they will only allow a bus with 
10 individuals to come into those parks. Grand Canyon is a 
perfect example. They are also not allowing companies to come 
in that do not already have passes in 2020 or what is called a 
CUA, commercial use authorization, permit. It means that as we 
get to the recovery and companies want to bring more people to 
our national park system or to the Grand Canyon, they will not 
be allowed to because you cannot run a bus with 10 individuals, 
one being the driver and one being the guide, only eight paying 
customers. And if you have not already been to the park and 
have a CUA in 2020, it means you cannot get one in 2021. So it 
is one example where the Federal Government needs to get out of 
the way and open the doors up to allow the recovery to 
continue.
    Senator Moran. Thank you.
    Senator Blumenthal. Mr. Chairman, if I might respond.
    Senator Moran. Senator Blumenthal.
    Senator Blumenthal. I think that point is very well made in 
general about the Federal Government getting out of the way, 
but more particularly about our national parks and the example 
of that being a destination for our motorcoach industry and our 
travel industry in general. Travel agents suffer from the 
potential closure of many of these venues, and our 
transportation industry.
    I also want to mention or emphasize a point made by Mr. Fay 
about The Bushnell being a source of education and resources 
for our children in school. It is part of our educational 
system. If we lose The Bushnell, we lose a vital source of 
culture and education for students. The Ridgefield Playhouse in 
Ridgefield, Connecticut has been serving as a free source of 
education for Bridgeport, Danbury, and Stamford school 
children. So making these venues available is absolutely 
critical for our educational system.
    Thanks, Mr. Chairman, and I want to thank all of the 
witnesses who are here today and who have participated 
virtually because you have added a tremendous amount to the 
understanding we have of this issue. Thank you.
    Senator Moran. Thank you, Senator Blumenthal.
    Any of our witnesses have anything they would like to say 
before we conclude?
    Mr. Strickland. Mr. Chairman, I would like to say thank you 
first and foremost to this committee and to you folks for doing 
this.
    I would like to go back to what Senator Tester said. We are 
not upset. We understand that Congress has a huge challenge in 
front of itself. You have to deal with a huge number of bills, 
thousands of bills. So your knowledge and your time is very 
valuable, and thank you for taking it. We understand the 
process. We just hope and pray that today we have made the live 
event industry's plight known.
    And I will close by saying that we are very vertically 
integrated. It is like that game--is it Jenga where you pull 
the blocks out? If one block goes, the whole tower falls. And 
what you see at the top is the big star, and what you see at 
the bottom are the manufacturers like Senator Young referenced. 
And when this thread begins to unravel, the venues, the sound 
people, the bus people, the labor people, the radio people, the 
rodeo people, and the manufacturers and the birthday party 
people and the party rental houses--it all falls apart because 
there is no chain. There is no ecosystem. And then it becomes 
the knock-on economic effect of the rest of the community.
    Again, thank you for your time.
    Senator Moran. An analogy well stated.
    Mr. Hartke, I think you wanted to say something.
    Mr. Hartke. Yes. Thank you, Chairman Moran.
    Again, I just wanted to state the urgency of this. We have 
employees whose PUA has ran out, and we have venues that have 
closed. Lots of them. And lots of them are facing closures. And 
I wanted to remind everybody that these are locally owned 
businesses. We live in the communities in which we own the 
business. It is mom and pop venues of all sizes across the 
country that this act, Save Our Stages Act, will help. So we do 
not have a month to wait. We do not have a week. We do not have 
2 months. The time is now. After 9 months, people are going 
under quick and it is just going to be over the edge if we wait 
any longer.
    So that is all I have to say. Thank you.
    Senator Moran. Thank you.
    Hopefully this hearing and its timing corresponds with the 
moment in time in which the U.S. Senate is prepared to act--the 
U.S. Congress. And thank you all for highlighting the 
importance of these bills and this issue to the American people 
and to the employees and to our economy.
    The hearing record will remain open for two weeks. During 
this time, Senators are asked to submit any questions for the 
record. Upon receipt, the witnesses are requested to submit 
their written answers to the Committee as soon as possible. 
What that is saying is that there may be questions submitted to 
our witnesses, and we would ask you to respond as quickly as 
you can.
    This concludes the hearing, and I thank again the witnesses 
for appearing today. This hearing is adjourned.
    [Whereupon, at 11:55 a.m., the hearing was adjourned.]

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