Texas 2019 - 86th Regular

Texas House Bill HB2806 Compare Versions

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Version 2 (New)

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1		-	By: Morrison, et al. (Senate Sponsor - Alvarado) H.B. No. 2806
2		-	(In the Senate - Received from the House April 24, 2019;
3		-	April 25, 2019, read first time and referred to Committee on
4		-	Business & Commerce; May 20, 2019, reported favorably by the
5		-	following vote: Yeas 7, Nays 1; May 20, 2019, sent to printer.)
6		-	Click here to see the committee vote
	1	+	86R25683 GRM-F
	2	+	By: Morrison, Cyrier, Moody, Allen, et al. H.B. No. 2806
7	3
8	4
9	5		A BILL TO BE ENTITLED
10	6		AN ACT
11	7		relating to the creation of the Texas music incubator rebate
12	8		program to provide for rebates of a portion of certain taxes
13	9		collected from certain music venues and promoters of certain music
14	10		festivals.
15	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	12		SECTION 1. Chapter 485, Government Code, is amended by
17	13		adding Subchapter C to read as follows:
18	14		SUBCHAPTER C. TEXAS MUSIC INCUBATOR REBATE PROGRAM
19	15		Sec. 485.041. DEFINITIONS. (a) Except as provided by
20	16		Subsection (b), the definitions in Section 1.04, Alcoholic Beverage
21	17		Code, apply to this subchapter.
22	18		(b) In this subchapter:
23	19		(1) "Mixed beverage gross receipts tax" means the tax
24	20		imposed by Subchapter B, Chapter 183, Tax Code.
25	21		(2) "Permit holder" means a person who holds a permit
26	22		issued under Section 151.201, Tax Code.
27	23		(3) "Permittee" has the meaning assigned by Section
28	24		183.001(b), Tax Code.
29	25		(4) "Program" means the Texas music incubator rebate
30	26		program.
31	27		(5) "Sales tax" means the tax imposed by Chapter 151,
32	28		Tax Code.
33	29		Sec. 485.042. TEXAS MUSIC INCUBATOR REBATE PROGRAM. (a)
34	30		The office shall administer the Texas music incubator rebate
35	31		program under which the office shall provide to eligible music
36	32		venues and eligible music festival promoters from money
37	33		appropriated from the Texas music incubator account a full or
38	34		partial rebate of the mixed beverage gross receipts taxes and sales
39	35		tax receipts attributable to the sale of beer and wine and remitted
40	36		to the comptroller annually by those venues and promoters. The
41	37		Texas music incubator account shall be funded by mixed beverage
42	38		gross receipts taxes and sales tax receipts attributable to the
43	39		sale of beer and wine remitted annually by venues and promoters and
44	40		deposited into that account as required by Sections 151.801(f) and
45	41		183.023(c), Tax Code. The rebates are to assist eligible music
46	42		venues and eligible music festival promoters in their efforts to
47	43		support and continue to bring to local communities in this state
48	44		live musical performances, including the recruitment of musical
49	45		performance artists.
50	46		(b) The office may not provide a rebate under the program to
51	47		a music venue or music festival promoter in an amount that exceeds
52	48		the lesser of:
53	49		(1) the amount of mixed beverage gross receipts taxes
54	50		and sales taxes attributable to the sale of beer and wine remitted
55	51		in the preceding fiscal year to the comptroller by the music venue
56	52		or music festival promoter as a permittee or permit holder; or
57	53		(2) $100,000.
58	54		Sec. 485.043. ELIGIBILITY FOR REBATE. (a) Except as
59	55		provided by Subsection (b), to qualify for a rebate under the
60	56		program, a music venue or music festival promoter, for at least the
61	57		two years preceding the date on which the music venue or promoter,
62	58		as applicable, submits an application under Section 485.044, must
63	59		have:
64	60		(1) been a permittee subject to the mixed beverage
65	61		gross receipts tax or a permit holder subject to the sales tax on
66	62		the sale of beer or wine;
67	63		(2) if the applicant is a music venue, been a retail
68	64		establishment with a dedicated audience capacity of not more than
69	65		3,000 persons;
70	66		(3) if the applicant is a music festival promoter,
71	67		held a music festival in a county with a population of less than
72	68		100,000;
73	69		(4) entered into a written contract with a musical
74	70		performance artist to conduct a live performance at the venue or
75	71		festival, as applicable, under which the artist received as
76	72		compensation a specified percentage of ticket sales for or other
77	73		sales during the performance, or a guaranteed amount in advance of
78	74		the performance; and
79	75		(5) met at least five of the following criteria, one of
80	76		which must be described by Paragraph (A) or (B):
81	77		(A) the marketing of live music performances
82	78		through listings in printed or electronic publications;
83	79		(B) the provision of live music performances five
84	80		or more nights per week;
85	81		(C) employment or contracting of the services of
86	82		one or more people who are tasked with two or more of the following
87	83		positions or services:
88	84		(i) sound engineer;
89	85		(ii) booker;
90	86		(iii) promoter;
91	87		(iv) stage manager; or
92	88		(v) security personnel;
93	89		(D) having live performance and audience space;
94	90		(E) the provision of technical sound and lighting
95	91		support, either in-house or through a contract with a vendor;
96	92		(F) having a space for the storage of audio
97	93		equipment or musical instruments;
98	94		(G) the application of cover charges to one or
99	95		more live music performances through ticketing or the imposition of
100	96		a front door entrance fee; or
101	97		(H) the maintenance of hours of operation that
102	98		coincide with live music performance show times.
103	99		(b) The office may, at the office's discretion, provide a
104	100		rebate under the program to a music venue or a music festival
105	101		promoter that fails to meet the eligibility requirements prescribed
106	102		by Subsection (a) solely because the venue is located, or the
107	103		festival is usually held, as applicable, in a county located wholly
108	104		or partly in an area that at any time during the preceding two-year
109	105		period was declared to be a disaster area by the governor or by the
110	106		president of the United States.
111	107		Sec. 485.044. REBATE APPLICATION. (a) The office shall:
112	108		(1) subject to Subsection (b), prescribe the
113	109		application form for obtaining a rebate under the program; and
114	110		(2) establish an online portal on the office's public
115	111		Internet website that allows a music venue or music festival
116	112		promoter to submit the application to the office for consideration.
117	113		(b) The application must:
118	114		(1) state the amount of mixed beverage gross receipts
119	115		tax and sales tax receipts attributable to the sale of beer and wine
120	116		that was remitted to the comptroller by the music venue or music
121	117		festival promoter in the preceding fiscal year;
122	118		(2) include sufficient evidence for the office to
123	119		determine that the music venue or promoter qualifies for a rebate;
124	120		and
125	121		(3) include any other information the office
126	122		determines necessary to administer the program.
127	123		(c) The office shall accept rebate applications beginning
128	124		September 1 of each year and may provide rebates until all the money
129	125		in the Texas music incubator account is exhausted.
130	126		(d) The office may expedite the review of an application
131	127		submitted by a music venue or music festival promoter, if the venue
132	128		is located, or the festival is usually held, as applicable, in a
133	129		county located wholly or partly in an area that at any time during
134	130		the preceding two-year period was declared to be a disaster area by
135	131		the governor or by the president of the United States.
136	132		Sec. 485.045. REVIEW OF APPLICATIONS; REBATES. (a) After
137	133		reviewing applications for a rebate under the program, the office
138	134		shall grant rebates to eligible music venues and music festival
139	135		promoters that the office determines provide or have committed to
140	136		provide the most economic benefit to the communities in which the
141	137		music venues are located or the festivals are held, as applicable,
142	138		and to the Texas music industry, including live music performers.
143	139		(b) As directed by the office, the comptroller shall issue a
144	140		warrant for a rebate granted by the office under this section drawn
145	141		on the Texas music incubator account.
146	142		Sec. 485.046. TEXAS MUSIC INCUBATOR ACCOUNT. (a) The Texas
147	143		music incubator account is a dedicated account in the general
148	144		revenue fund. The account is composed of:
149	145		(1) money deposited to the credit of the account under
150	146		Sections 151.801(f) and 183.023(c), Tax Code;
151	147		(2) gifts, grants, and other money received by the
152	148		office for the program; and
153	149		(3) other amounts deposited to the credit of the
154	150		account.
155	151		(b) Money in the account may be appropriated only to the
156	152		office for the purpose of paying rebates to music venues and certain
157	153		music festival promoters under the program.
158	154		(c) Interest and other earnings from money in the account
159	155		shall be credited to the account.
160	156		(d) On the last day of each state fiscal biennium, the
161	157		comptroller shall transfer any money deposited to the account under
162	158		Subsection (a)(1) that is unobligated and unexpended on that date
163	159		to the general revenue fund to be used in accordance with
164	160		legislative appropriation.
165	161		Sec. 485.047. RULES. The office shall adopt rules
166	162		necessary to implement and administer this subchapter.
167	163		SECTION 2. Section 151.801, Tax Code, is amended by
168	164		amending Subsection (a) and adding Subsection (f) to read as
169	165		follows:
170	166		(a) Except for the amounts allocated under Subsections (b),
171	167		(c), [and] (c-2), and (f), all proceeds from the collection of the
172	168		taxes imposed by this chapter shall be deposited to the credit of
173	169		the general revenue fund.
174	170		(f) The comptroller shall deposit each fiscal year $100,000
175	171		of the revenue received under this chapter to the credit of the
176	172		Texas music incubator account under Section 485.046, Government
177	173		Code.
178	174		SECTION 3. Section 183.023, Tax Code, is amended by
179	175		amending Subsection (b) and adding Subsection (c) to read as
180	176		follows:
181	177		(b) Except for the amounts allocated under Subsection (c),
182	178		the [The] comptroller shall deposit the revenue received under this
183	179		section in the general revenue fund.
184	180		(c) The comptroller shall deposit each fiscal year $10
185	181		million of the revenue received under this section to the credit of
186	182		the Texas music incubator account under Section 485.046, Government
187	183		Code.
188	184		SECTION 4. (a) Not later than September 1, 2020, the Music,
189	185		Film, Television, and Multimedia Office within the office of the
190	186		governor shall establish the Texas music incubator rebate program
191	187		as required under Subchapter C, Chapter 485, Government Code, as
192	188		added by this Act.
193	189		(b) Notwithstanding Section 485.044(c), Government Code, as
194	190		added by this Act, the Music, Film, Television, and Multimedia
195	191		Office shall begin accepting rebate applications as authorized
196	192		under that section beginning September 1, 2020.
197	193		SECTION 5. This Act takes effect September 1, 2019.
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