Overview
Title
To amend the Public Works and Economic Development Act of 1965 to authorize the Secretary of Commerce to make grants to professional nonprofit theaters for the purposes of supporting operations, employment, and economic development.
ELI5 AI
The STAGE Act is like giving nonprofit theaters a big helping hand by providing money to help them pay actors, fix the theater, and hire more people so they can keep putting on plays. Imagine it as a giant piggy bank from the government to help theaters stay open and make people happy.
Summary AI
H.R. 7894, also known as the “Supporting Theater and the Arts to Galvanize the Economy Act” or the “STAGE Act”, aims to amend the Public Works and Economic Development Act of 1965. It proposes setting up a grant program under the Secretary of Commerce that would provide funding to nonprofit theaters to support operations, employment, and economic recovery. Eligible theaters must be nonprofit organizations with a history of presenting live performances, and the grants can be used for expenses such as payroll, facility improvements, and workforce development. Additionally, the bill requires a study on how the federal government can support the nonprofit arts sector more effectively, with a report to be submitted to Congress within two years.
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AnalysisAI
General Summary of the Bill
The proposed legislation, titled the "Supporting Theater and the Arts to Galvanize the Economy Act" or the "STAGE Act," aims to amend the Public Works and Economic Development Act of 1965. Its primary purpose is to establish a program that authorizes the Secretary of Commerce to provide grants to professional nonprofit theaters. These grants are intended to support operations, employment, and economic development within the theater arts sector. The bill sets forth detailed eligibility criteria for nonprofit organizations to qualify for the grants and outlines permissible uses of the funds. It also mandates a study to explore federal support mechanisms for sustaining the nonprofit arts sector, emphasizing rural and underserved areas.
Summary of Significant Issues
Several key issues emerge from the provisions of this bill:
Eligibility Criteria Complexity: The criteria outlined for nonprofit theaters to qualify for the grants are extensive. These requirements, including a three-year history of programming and specific labor law compliance, could inadvertently favor established organizations over smaller or newer entities.
Grant Amount Limitation: The bill allows grants of up to $16 million, which some may argue is excessive. There is concern that such large amounts could lead to inefficient use of funds if not adequately justified or controlled.
Vagueness in Definitions: Terms like "historically underserved communities" are not clearly defined. This ambiguity might lead to inconsistent interpretations and challenges in equitable grant distribution.
Flexible Spending Clause: The provision allowing grants to be used for "other uses, as determined by the Secretary," lacks specificity. This could result in funds being allocated inappropriately, diverging from the bill's intended purposes.
Expansive Compliance Requirements: The extensive list of labor laws with which the applicant entities must comply could be a significant barrier, possibly disqualifying many potential applicants due to the demanding compliance verifications.
Funding for Study Without Clear Allocation: The allocation of $1 million for a study on supporting the nonprofit arts sector lacks a detailed budget breakdown, leaving questions about how these funds will be utilized.
Public Impact
The STAGE Act, if enacted, could have a broad impact on the theater arts community and the wider economy. By potentially injecting significant financial resources into the nonprofit theater sector, the bill aims to rejuvenate economic activity and foster job creation in the arts—a sector often overlooked in economic development efforts. This could lead to revitalized community engagement and increased access to cultural events, enriching the public's quality of life.
However, the complexity and potentially restrictive nature of the eligibility criteria may limit the number of theaters able to benefit from the program. This could hinder the bill’s goal of promoting widespread economic recovery within the arts sector, particularly affecting smaller venues that play a crucial role in their communities.
Stakeholder Impact
Positive Impacts:
Established Nonprofit Theaters: These organizations could significantly benefit from the financial injection, aiding in operational sustainability, employee retention, and infrastructure enhancements. The funds could enable theaters to undertake new projects, thereby diversifying their offerings to the public.
Communities With Primary Theaters: Regions with theaters serving as primary cultural hubs might see growth in tourism and local economy if these theaters receive prioritized funding.
Negative Impacts:
Smaller or Emerging Theaters: Newer and smaller theaters may find it challenging to meet the stringent eligibility requirements, potentially missing out on crucial funding that could facilitate their survival and growth.
Multidisciplinary Arts Organizations: These organizations could be disadvantaged if they do not primarily produce theater, as priority funding may focus narrowly on traditional theatrical productions.
Overall, while the STAGE Act could catalyze positive change within the nonprofit arts sector, the complex eligibility and fund allocation criteria necessitate careful consideration to achieve equitable and impactful outcomes.
Financial Assessment
The proposed legislation, H.R. 7894, known as the "Supporting Theater and the Arts to Galvanize the Economy Act" or the "STAGE Act," introduces a structured grant program to support nonprofit theaters. It encompasses several financial allocations and mechanisms that are detailed in the bill's text.
Financial Allocations and Spending
1. Grant Program Funding:
The bill authorizes an annual appropriation of $1,000,000,000 for fiscal years 2024 through 2028 to establish the Professional Nonprofit Theater Grant Program. These funds are intended to support nonprofit theaters financially. The grants can be used for a variety of expenditures, including payroll, facility improvements, and workforce development.
2. Grant Amount Limitations:
Each eligible entity can receive a grant not exceeding the lesser of 20% of their total expenditures during the most recent fiscal year or $16,000,000. This cap aims to distribute the available funds across multiple entities but raises potential concerns about the efficiency and fairness of fund distribution.
3. Additional Financial Provisions:
In addition to these direct financial allocations, the bill sets aside not more than 1% of the program funds for technical assistance to eligible entities. The intention here is to help theaters navigate the federal grants process, particularly benefiting those that have not previously received a federal grant.
Study on Nonprofit Arts Sector
Beyond direct financial support, Section 3 of the bill allocates $1,000,000 to conduct a study on sustaining the nonprofit arts sector. This study will explore how federal support can be leveraged to strengthen this sector, offering recommendations for future actions.
Issues Related to Financial References
1. Eligibility Criteria and Access:
The bill’s extensive eligibility requirements may pose a barrier to smaller or newer nonprofit theater organizations that might lack the resources to meet these criteria. This could potentially skew financial support towards larger, more established theaters, limiting the diversity of arts organizations benefiting from the program.
2. Grant Cap Justification:
The maximum grant amount of $16,000,000 per eligible entity could benefit larger organizations disproportionately. Ensuring that such substantial sums are justifiable relative to an entity's size and needs might require further scrutiny to prevent inefficient use of taxpayer money.
3. Use of Funds Flexibility:
The clause allowing for "other uses, as determined by the Secretary" provides significant flexibility, which might be beneficial for addressing unique needs but also poses risks of deviation from the intended purpose. Specific guidelines could help ensure these funds are used appropriately.
4. Study Allocation Transparency:
The authorization of $1,000,000 for a federal study lacks detailed spending plans, leading to potential questions about the allocation's efficiency. A more transparent breakdown could alleviate concerns about the study's funding adequacy and its actual contribution to understanding and bolstering the nonprofit arts sector.
In summary, while the STAGE Act proposes significant financial support for nonprofit theaters, careful consideration of the allocation limits, eligibility criteria, and spending transparency is crucial to ensure that funds effectively contribute to the sector's intended economic and employment goals.
Issues
The eligibility criteria for nonprofit organizations in Section 208 appear extensive and may limit access to the grant program for smaller or newer entities, potentially favoring larger and more established organizations.
The grant's limitation on the maximum amount ($16,000,000) in Section 208 seems high and may require justification to ensure efficient use of funds and prevent overly large grants to single entities.
The definition of historically underserved communities in Section 208 is vague and could benefit from clearer guidelines or examples to ensure consistent interpretation and application.
The clause in Section 208 allowing for 'other uses, as determined by the Secretary,' lacks specific guidance, potentially opening the door to non-standard or inappropriate spending.
The list of labor laws and regulations in Section 208 for which violations disqualify entities is extensive and assumes a high level of legal compliance, which could potentially disqualify many applicants.
The language regarding eligibility verification requirements and attestations in Section 208 is complex, which may make the application process daunting or cause unintentional non-compliance.
The section authorizes $1,000,000 for a study in Section 3 but does not provide a detailed breakdown of how this amount will be spent, potentially leading to questions about the allocation of funds.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the Act gives it the official name, "Supporting Theater and the Arts to Galvanize the Economy Act" or simply the "STAGE Act."
2. Professional nonprofit theater grants Read Opens in new tab
Summary AI
The Professional Nonprofit Theater Grant Program is a newly established initiative aimed at providing financial support to nonprofit organizations involved in live theater, with the goals of boosting employment, promoting economic development, and enhancing theater facilities. Eligible organizations must meet certain criteria, such as being nonprofit, having a history of programming, and adhering to labor laws, and they can use the grants for various expenses like payroll, facility improvements, and marketing, with funding capped at the lesser of $16 million or 20% of the entity's annual expenditures.
Money References
- “(7) In the case of an eligible entity that has, during the 3-year period preceding the date of application, an average combined annual revenue and assets of less than $30,000,000, costs associated with the construction or acquisition of a new facility to house theatrical productions, projects, performances, workshops, or programs.
- — “(1) IN GENERAL.—A grant provided under the program shall not exceed an amount equal to the lesser of— “(A) 20 percent of the total expenditures of the eligible entity during the most recent fiscal year; and “(B) $16,000,000. “(2) NO REDUCTION OF
- — “(1) IN GENERAL.—There is authorized to be appropriated to the Secretary to carry out the program $1,000,000,000 for each of fiscal years 2024 through 2028.
208. Professional nonprofit theater grants Read Opens in new tab
Summary AI
The section establishes the Professional Nonprofit Theater Grant Program, which aims to provide financial support to nonprofit theater organizations. Eligible entities must meet specific criteria, such as having a history of programming and adhering to labor laws, and the grants can be used for a variety of purposes including payroll, facilities improvement, and marketing. The program has an annual budget of $1 billion from 2024 to 2028, with priority given to theaters primarily producing plays and those serving as main venues in a region.
Money References
- (7) In the case of an eligible entity that has, during the 3-year period preceding the date of application, an average combined annual revenue and assets of less than $30,000,000, costs associated with the construction or acquisition of a new facility to house theatrical productions, projects, performances, workshops, or programs.
- (e) Limitations.— (1) IN GENERAL.—A grant provided under the program shall not exceed an amount equal to the lesser of— (A) 20 percent of the total expenditures of the eligible entity during the most recent fiscal year; and (B) $16,000,000. (2) NO REDUCTION OF PROFESSIONAL PERFORMERS.—An eligible entity may not use trainees, interns, or other similar positions to displace, substitute for, supplant, or otherwise replace professional performers and related or supporting professional personnel. (f) Priority.—In providing grants under the program, the Secretary may give priority to— (1) an application from an eligible entity that plans to allocate the majority of the grant funds for uses described in subsection (d)(1); and (2) an application from an eligible entity that serves as the primary theatrical venue for a geographical region.
- — (1) IN GENERAL.—There is authorized to be appropriated to the Secretary to carry out the program $1,000,000,000 for each of fiscal years 2024 through 2028.
3. Study on sustaining the nonprofit arts sector Read Opens in new tab
Summary AI
The section requires the President’s Committee on the Arts and the Humanities to conduct a study, in consultation with various leaders, on how federal support can sustain and enhance the economic impact of the nonprofit arts sector, especially in rural and underserved areas. The findings and recommendations are to be reported to Congress and made public within two years, with a budget of $1,000,000 allocated for this purpose.
Money References
- (e) Authorization of appropriations.—There is authorized to be appropriated $1,000,000 to carry out this section.