In my contract it reads "In the event that (business name) is unable to perform any of it's obligations under this Agreement due to any occurrence whether or not occasioned by the conduct of (business name), which would prevent (business name) from hosting said event, then, (business name) shall be released from any further performance under this Agreement for whatever period of time until after the occurrence is reasonably remedied. Should your event be cancelled for any of the above reasons, (business name) shall only be held responsible to refund the total amount paid by you to (business name) as of the date of cancellation or delay."
This is just saying that if they can’t host your event then the only remedy you get is your money back that your paid them (your deposit, advance payments, and of course your don’t owe final payments).
It is there to make it clear that they are not responsible of any other money. What else might the client want them to refund? Other lost expenses. Non refundable deposits to the band, the florist, the caterer if this is just for the space. The non refundable airline tickets your relatives bought. Prepaid hotel rooms. They will not pay for any of that.
The pandemic is a bit of a red herring because although that is of course the big thing now, it says any occurance whether or not the business caused it.
The answers to your specific questions though are pretty trivial. -The business did not cause the pandemic or control the state health office (Irrelevant as noted) -There is nothing they can do about it. The state or county will allow the events when the situation improves.
But even if say there was no state order but the venue for their own reasons or because they could not get enough staff cancelled, the answer would be the same.