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.
* * * * *