86R1239 GRM-F
 
  By: Morrison H.B. No. 2806
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of the Texas music incubator rebate
  program to provide for rebates of a portion of the mixed beverage
  gross receipts taxes collected from certain music venues.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 485, Government Code, is amended by
  adding Subchapter C to read as follows:
  SUBCHAPTER C. TEXAS MUSIC INCUBATOR REBATE PROGRAM
         Sec. 485.041.  DEFINITIONS. In this subchapter:
               (1)  "Mixed beverage gross receipts tax" means the tax
  imposed by Subchapter B, Chapter 183, Tax Code.
               (2)  "Permittee" has the meaning assigned by Section
  183.001(b), Tax Code.
               (3)  "Program" means the Texas music incubator rebate
  program.
         Sec. 485.042.  TEXAS MUSIC INCUBATOR REBATE PROGRAM. (a)
  The office shall administer the Texas music incubator rebate
  program under which the office shall provide to eligible music
  venues from money appropriated from the Texas music incubator
  account a full or partial rebate of the mixed beverage gross
  receipts taxes remitted annually by those venues and deposited into
  that account as required by Section 183.023(c), Tax Code. The
  rebates are to assist eligible music venues in their efforts to
  support and continue to bring to the community live musical
  performances, including the recruitment of musical performance
  artists.
         (b)  The office may not provide a rebate under the program to
  any music venue that exceeds the lesser of:
               (1)  the amount of mixed beverage gross receipts tax
  remitted in the preceding fiscal year to the comptroller by the
  music venue as a permittee; or
               (2)  $100,000.
         Sec. 485.043.  ELIGIBILITY FOR REBATE. To qualify for a
  rebate under the program, a music venue, for at least the two years
  preceding the date on which the music venue submits an application
  under Section 485.044, must have:
               (1)  been a permittee subject to Subchapter B, Chapter
  183, Tax Code;
               (2)  been a for-profit retail establishment with a
  dedicated audience capacity of not more than 3,000;
               (3)  entered into a written contract with a musical
  performance artist to conduct a live performance at the venue under
  which the artist received as compensation a specified percentage of
  ticket sales for or other sales during the performance, or a
  guaranteed amount in advance of the performance; and 
               (4)  met at least five of the following criteria, one of
  which must be described by Paragraph (A) or (B):
                     (A)  the marketing of live music performances
  through listings in printed or electronic publications;
                     (B)  the provision of live music performances five
  or more nights per week;
                     (C)  the employment of one or more people who are
  tasked with two or more of the following positions:
                           (i)  sound engineer;
                           (ii)  booker;
                           (iii)  promoter;
                           (iv)  stage manager; or
                           (v)  security personnel;
                     (D)  having live performance and audience space;
                     (E)  having a mixing desk, public address system,
  and lighting rig;
                     (F)  having a space dedicated to audio
  amplification and the on-site storage of audio equipment or musical
  instruments;
                     (G)  the application of cover charges to one or
  more live music performances through ticketing or the imposition of
  a front door entrance fee; or
                     (H)  the maintenance of hours of operation that
  coincide with live music performance show times.
         Sec. 485.044.  REBATE APPLICATION. (a) The office shall:
               (1)  subject to Subsection (b), prescribe the
  application form for obtaining a rebate under the program; and
               (2)  establish an online portal on the office's public
  Internet website that allows a music venue to submit the
  application to the office for consideration.
         (b)  The application must:
               (1)  state the amount of mixed beverage gross receipts
  tax that was remitted to the comptroller by the music venue in the
  preceding fiscal year;
               (2)  include sufficient evidence for the office to
  determine that the music venue qualifies for a rebate; and
               (3)  any other information the office determines
  necessary to administer the program.
         (c)  The office shall accept rebate applications beginning
  September 1 of each year and may provide rebates until all the money
  in the Texas music incubator account is exhausted.
         Sec. 485.045.  REVIEW OF APPLICATIONS; REBATES. (a) After
  reviewing applications for a rebate under the program, the office
  shall grant rebates to eligible music venue applicants that the
  office determines provide or have committed to provide the most
  economic benefit to the communities in which the music venues are
  located and to the Texas music industry, including live music
  performers.
         (b)  As directed by the office, the comptroller shall issue a
  warrant for a rebate granted by the office under this section drawn
  on the Texas music incubator account.
         Sec. 485.046.  TEXAS MUSIC INCUBATOR ACCOUNT. (a) The Texas
  music incubator account is a dedicated account in the general
  revenue fund. The account is composed of:
               (1)  money deposited to the credit of the account under
  Section 183.023(c), Tax Code;
               (2)  gifts, grants, and other money received by the
  office for the program; and
               (3)  other amounts deposited to the credit of the
  account.
         (b)  Money in the account may be appropriated only to the
  office for the purpose of paying rebates to music venues under the
  program.
         (c)  Interest and other earnings from money in the account
  shall be credited to the account.
         Sec. 485.047.  RULES. The office shall adopt rules
  necessary to implement and administer this subchapter.
         SECTION 2.  Section 183.023, Tax Code, is amended by adding
  Subsection (c) to read as follows:
         (c)  Notwithstanding Subsection (b), the comptroller shall
  deposit four percent of the revenue received under this section to
  the credit of the Texas music incubator account under Section
  485.046, Government Code.
         SECTION 3.  (a) Not later than September 1, 2020, the Music,
  Film, Television, and Multimedia Office within the office of the
  governor shall establish the Texas music incubator rebate program
  as required under Subchapter C, Chapter 485, Government Code, as
  added by this Act.
         (b)  Notwithstanding Section 485.044(c), Government Code, as
  added by this Act, the Music, Film, Television, and Multimedia
  Office shall begin accepting rebate applications as authorized
  under that section beginning September 1, 2020.
         SECTION 4.  This Act takes effect September 1, 2019.