By: Alvarado  S.B. No. 609
         (In the Senate - Filed February 8, 2021; March 11, 2021,
  read first time and referred to Committee on Finance;
  April 15, 2021, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 13, Nays 2; April 15, 2021,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 609 By:  Nelson
 
 
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 certain taxes
  collected from certain music venues and promoters of certain music
  festivals.
         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. (a) Except as provided by
  Subsection (b), the definitions in Section 1.04, Alcoholic Beverage
  Code, apply to this subchapter.
         (b)  In this subchapter:
               (1)  "Mixed beverage gross receipts tax" means the tax
  imposed by Subchapter B, Chapter 183, Tax Code.
               (2)  "Permit holder" means a person who holds a permit
  issued under Section 151.201, Tax Code.
               (3)  "Permittee" has the meaning assigned by Section
  183.001(b), Tax Code.
               (4)  "Program" means the Texas music incubator rebate
  program.
               (5)  "Sales tax" means the tax imposed by Chapter 151,
  Tax Code.
         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 and eligible music festival promoters from money
  appropriated from the Texas music incubator account a full or
  partial rebate of the mixed beverage gross receipts taxes and sales
  tax receipts attributable to the sale of beer and wine and remitted
  to the comptroller annually by those venues and promoters.  The
  Texas music incubator account shall be funded by mixed beverage
  gross receipts taxes and sales tax receipts attributable to the
  sale of beer and wine remitted annually by venues and promoters and
  deposited into that account as required by Sections 151.801(f) and
  183.023(c), Tax Code.  The rebates are to assist eligible music
  venues and eligible music festival promoters in their efforts to
  support and continue to bring to local communities in this state
  live musical performances, including the recruitment of musical
  performance artists.
         (b)  The office may not provide a rebate under the program to
  a music venue or music festival promoter in an amount that exceeds
  the lesser of:
               (1)  the amount of mixed beverage gross receipts taxes
  and sales taxes attributable to the sale of beer and wine remitted
  in the preceding fiscal year to the comptroller by the music venue
  or music festival promoter as a permittee or permit holder; or
               (2)  $100,000.
         Sec. 485.043.  ELIGIBILITY FOR REBATE. (a)  Except as
  provided by Subsection (b), to qualify for a rebate under the
  program, a music venue or music festival promoter, for at least the
  two years preceding the date on which the music venue or promoter,
  as applicable, submits an application under Section 485.044, must
  have:
               (1)  been a permittee subject to the mixed beverage
  gross receipts tax or a permit holder subject to the sales tax on
  the sale of beer or wine;
               (2)  if the applicant is a music venue, been a retail
  establishment with a dedicated audience capacity of not more than
  3,000 persons;
               (3)  if the applicant is a music festival promoter,
  held a music festival in a county with a population of less than
  100,000;
               (4)  entered into a written contract with a musical
  performance artist to conduct a live performance at the venue or
  festival, as applicable, 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
               (5)  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)  employment or contracting of the services of
  one or more people who are tasked with two or more of the following
  positions or services:
                           (i)  sound engineer;
                           (ii)  booker;
                           (iii)  promoter;
                           (iv)  stage manager; or
                           (v)  security personnel;
                     (D)  having live performance and audience space;
                     (E)  the provision of technical sound and lighting
  support, either in-house or through a contract with a vendor;
                     (F)  having a space for the 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.
         (b)  The office may, at the office's discretion, provide a
  rebate under the program to a music venue or a music festival
  promoter that fails to meet the eligibility requirements prescribed
  by Subsection (a) solely because the venue is located, or the
  festival is usually held, as applicable, in a county located wholly
  or partly in an area that at any time during the preceding two-year
  period was declared to be a disaster area by the governor or by the
  president of the United States.
         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 or music festival
  promoter to submit the application to the office for consideration.
         (b)  The application must:
               (1)  state the amount of mixed beverage gross receipts
  tax and sales tax receipts attributable to the sale of beer and wine
  that was remitted to the comptroller by the music venue or music
  festival promoter in the preceding fiscal year;
               (2)  include sufficient evidence for the office to
  determine that the music venue or promoter qualifies for a rebate;
  and
               (3)  include 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.
         (d)  The office may expedite the review of an application
  submitted by a music venue or music festival promoter, if the venue
  is located, or the festival is usually held, as applicable, in a
  county located wholly or partly in an area that at any time during
  the preceding two-year period was declared to be a disaster area by
  the governor or by the president of the United States.
         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 venues and music festival
  promoters that the office determines provide or have committed to
  provide the most economic benefit to the communities in which the
  music venues are located or the festivals are held, as applicable,
  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
  Sections 151.801(f) and 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 and certain
  music festival promoters under the program.
         (c)  Interest and other earnings from money in the account
  shall be credited to the account.
         (d)  On the last day of each state fiscal biennium, the
  comptroller shall transfer any money deposited to the account under
  Subsection (a)(1) that is unobligated and unexpended on that date
  to the general revenue fund to be used in accordance with
  legislative appropriation.
         Sec. 485.047.  RULES. The office shall adopt rules
  necessary to implement and administer this subchapter.
         SECTION 2.  Section 151.801, Tax Code, is amended by
  amending Subsection (a) and adding Subsection (f) to read as
  follows:
         (a)  Except for the amounts allocated under Subsections (b),
  (c), (c-2), [and] (c-3), and (f), all proceeds from the collection
  of the taxes imposed by this chapter shall be deposited to the
  credit of the general revenue fund.
         (f)  The comptroller shall deposit each fiscal year $100,000
  of the revenue received under this chapter to the credit of the
  Texas music incubator account under Section 485.046, Government
  Code.
         SECTION 3.  Section 183.023, Tax Code, is amended by
  amending Subsection (b) and adding Subsection (c) to read as
  follows:
         (b)  Except for the amounts allocated under Subsection (c),
  the [The] comptroller shall deposit the revenue received under this
  section in the general revenue fund.
         (c)  The comptroller shall deposit each fiscal year $10
  million of the revenue received under this section to the credit of
  the Texas music incubator account under Section 485.046, Government
  Code.
         SECTION 4.  (a) Not later than September 1, 2022, 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, 2022.
         SECTION 5.  The Music, Film, Television, and Multimedia
  Office and the comptroller of public accounts are required to
  implement a provision of this Act only if the legislature
  appropriates money specifically for that purpose. If the
  legislature does not appropriate money specifically for that
  purpose, the office and comptroller may, but are not required to,
  implement a provision of this Act using other appropriations that
  are available for that purpose.
         SECTION 6.  This Act takes effect September 1, 2021.
 
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