86R1239 GRM-F
By: Alvarado S.B. No. 1832
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.