Texas 2021 - 87th Regular

Texas Senate Bill SB609 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 609
	1	+	By: Alvarado, et al. S.B. No. 609
	2	+	(Morrison)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to the creation of the Texas music incubator rebate
6	8		program to provide for rebates of a portion of certain taxes
7	9		collected from certain music venues and promoters of certain music
8	10		festivals.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Chapter 485, Government Code, is amended by
11	13		adding Subchapter C to read as follows:
12	14		SUBCHAPTER C. TEXAS MUSIC INCUBATOR REBATE PROGRAM
13	15		Sec. 485.041. DEFINITIONS. (a) Except as provided by
14	16		Subsection (b), the definitions in Section 1.04, Alcoholic Beverage
15	17		Code, apply to this subchapter.
16	18		(b) In this subchapter:
17	19		(1) "Mixed beverage gross receipts tax" means the tax
18	20		imposed by Subchapter B, Chapter 183, Tax Code.
19	21		(2) "Permit holder" means a person who holds a permit
20	22		issued under Section 151.201, Tax Code.
21	23		(3) "Permittee" has the meaning assigned by Section
22	24		183.001(b), Tax Code.
23	25		(4) "Program" means the Texas music incubator rebate
24	26		program.
25	27		(5) "Sales tax" means the tax imposed by Chapter 151,
26	28		Tax Code.
27	29		Sec. 485.042. TEXAS MUSIC INCUBATOR REBATE PROGRAM. (a)
28	30		The office shall administer the Texas music incubator rebate
29	31		program under which the office shall provide to eligible music
30	32		venues and eligible music festival promoters from money
31	33		appropriated from the Texas music incubator account a full or
32	34		partial rebate of the mixed beverage gross receipts taxes and sales
33	35		tax receipts attributable to the sale of beer and wine and remitted
34	36		to the comptroller annually by those venues and promoters. The
35	37		Texas music incubator account shall be funded by mixed beverage
36	38		gross receipts taxes and sales tax receipts attributable to the
37	39		sale of beer and wine remitted annually by venues and promoters and
38	40		deposited into that account as required by Sections 151.801(f) and
39	41		183.023(c), Tax Code. The rebates are to assist eligible music
40	42		venues and eligible music festival promoters in their efforts to
41	43		support and continue to bring to local communities in this state
42	44		live musical performances, including the recruitment of musical
43	45		performance artists.
44	46		(b) The office may not provide a rebate under the program to
45	47		a music venue or music festival promoter in an amount that exceeds
46	48		the lesser of:
47	49		(1) the amount of mixed beverage gross receipts taxes
48	50		and sales taxes attributable to the sale of beer and wine remitted
49	51		in the preceding fiscal year to the comptroller by the music venue
50	52		or music festival promoter as a permittee or permit holder; or
51	53		(2) $100,000.
52	54		Sec. 485.043. ELIGIBILITY FOR REBATE. (a) Except as
53	55		provided by Subsection (b), to qualify for a rebate under the
54	56		program, a music venue or music festival promoter, for at least the
55	57		two years preceding the date on which the music venue or promoter,
56	58		as applicable, submits an application under Section 485.044, must
57	59		have:
58	60		(1) been a permittee subject to the mixed beverage
59	61		gross receipts tax or a permit holder subject to the sales tax on
60	62		the sale of beer or wine;
61	63		(2) if the applicant is a music venue, been a retail
62	64		establishment with a dedicated audience capacity of not more than
63	65		3,000 persons;
64	66		(3) if the applicant is a music festival promoter,
65	67		held a music festival in a county with a population of less than
66	68		100,000;
67	69		(4) entered into a written contract with a musical
68	70		performance artist to conduct a live performance at the venue or
69	71		festival, as applicable, under which the artist received as
70	72		compensation a specified percentage of ticket sales for or other
71	73		sales during the performance, or a guaranteed amount in advance of
72	74		the performance; and
73	75		(5) met at least five of the following criteria, one of
74	76		which must be described by Paragraph (A) or (B):
75	77		(A) the marketing of live music performances
76	78		through listings in printed or electronic publications;
77	79		(B) the provision of live music performances five
78	80		or more nights per week;
79	81		(C) employment or contracting of the services of
80	82		one or more people who are tasked with two or more of the following
81	83		positions or services:
82	84		(i) sound engineer;
83	85		(ii) booker;
84	86		(iii) promoter;
85	87		(iv) stage manager; or
86	88		(v) security personnel;
87	89		(D) having live performance and audience space;
88	90		(E) the provision of technical sound and lighting
89	91		support, either in-house or through a contract with a vendor;
90	92		(F) having a space for the storage of audio
91	93		equipment or musical instruments;
92	94		(G) the application of cover charges to one or
93	95		more live music performances through ticketing or the imposition of
94	96		a front door entrance fee; or
95	97		(H) the maintenance of hours of operation that
96	98		coincide with live music performance show times.
97	99		(b) The office may, at the office's discretion, provide a
98	100		rebate under the program to a music venue or a music festival
99	101		promoter that fails to meet the eligibility requirements prescribed
100	102		by Subsection (a) solely because the venue is located, or the
101	103		festival is usually held, as applicable, in a county located wholly
102	104		or partly in an area that at any time during the preceding two-year
103	105		period was declared to be a disaster area by the governor or by the
104	106		president of the United States.
105	107		Sec. 485.044. REBATE APPLICATION. (a) The office shall:
106	108		(1) subject to Subsection (b), prescribe the
107	109		application form for obtaining a rebate under the program; and
108	110		(2) establish an online portal on the office's public
109	111		Internet website that allows a music venue or music festival
110	112		promoter to submit the application to the office for consideration.
111	113		(b) The application must:
112	114		(1) state the amount of mixed beverage gross receipts
113	115		tax and sales tax receipts attributable to the sale of beer and wine
114	116		that was remitted to the comptroller by the music venue or music
115	117		festival promoter in the preceding fiscal year;
116	118		(2) include sufficient evidence for the office to
117	119		determine that the music venue or promoter qualifies for a rebate;
118	120		and
119	121		(3) include any other information the office
120	122		determines necessary to administer the program.
121	123		(c) The office shall accept rebate applications beginning
122	124		September 1 of each year and may provide rebates until all the money
123	125		in the Texas music incubator account is exhausted.
124	126		(d) The office may expedite the review of an application
125	127		submitted by a music venue or music festival promoter, if the venue
126	128		is located, or the festival is usually held, as applicable, in a
127	129		county located wholly or partly in an area that at any time during
128	130		the preceding two-year period was declared to be a disaster area by
129	131		the governor or by the president of the United States.
130	132		Sec. 485.045. REVIEW OF APPLICATIONS; REBATES. (a) After
131	133		reviewing applications for a rebate under the program, the office
132	134		shall grant rebates to eligible music venues and music festival
133	135		promoters that the office determines provide or have committed to
134	136		provide the most economic benefit to the communities in which the
135	137		music venues are located or the festivals are held, as applicable,
136	138		and to the Texas music industry, including live music performers.
137	139		(b) As directed by the office, the comptroller shall issue a
138	140		warrant for a rebate granted by the office under this section drawn
139	141		on the Texas music incubator account.
140	142		Sec. 485.046. TEXAS MUSIC INCUBATOR ACCOUNT. (a) The Texas
141	143		music incubator account is a dedicated account in the general
142	144		revenue fund. The account is composed of:
143	145		(1) money deposited to the credit of the account under
144	146		Sections 151.801(f) and 183.023(c), Tax Code;
145	147		(2) gifts, grants, and other money received by the
146	148		office for the program; and
147	149		(3) other amounts deposited to the credit of the
148	150		account.
149	151		(b) Money in the account may be appropriated only to the
150	152		office for the purpose of paying rebates to music venues and certain
151	153		music festival promoters under the program.
152	154		(c) Interest and other earnings from money in the account
153	155		shall be credited to the account.
154	156		(d) On the last day of each state fiscal biennium, the
155	157		comptroller shall transfer any money deposited to the account under
156	158		Subsection (a)(1) that is unobligated and unexpended on that date
157	159		to the general revenue fund to be used in accordance with
158	160		legislative appropriation.
159	161		Sec. 485.047. RULES. The office shall adopt rules
160	162		necessary to implement and administer this subchapter.
161	163		SECTION 2. Section 151.801, Tax Code, is amended by
162	164		amending Subsection (a) and adding Subsection (f) to read as
163	165		follows:
164	166		(a) Except for the amounts allocated under Subsections (b),
165	167		(c), (c-2), [and] (c-3), and (f), all proceeds from the collection
166	168		of the taxes imposed by this chapter shall be deposited to the
167	169		credit of the general revenue fund.
168	170		(f) The comptroller shall deposit each fiscal year $100,000
169	171		of the revenue received under this chapter to the credit of the
170	172		Texas music incubator account under Section 485.046, Government
171	173		Code.
172	174		SECTION 3. Section 183.023, Tax Code, is amended by
173	175		amending Subsection (b) and adding Subsection (c) to read as
174	176		follows:
175	177		(b) Except for the amounts allocated under Subsection (c),
176	178		the [The] comptroller shall deposit the revenue received under this
177	179		section in the general revenue fund.
178	180		(c) The comptroller shall deposit each fiscal year $10
179	181		million of the revenue received under this section to the credit of
180	182		the Texas music incubator account under Section 485.046, Government
181	183		Code.
182	184		SECTION 4. (a) Not later than September 1, 2022, the Music,
183	185		Film, Television, and Multimedia Office within the office of the
184	186		governor shall establish the Texas music incubator rebate program
185	187		as required under Subchapter C, Chapter 485, Government Code, as
186	188		added by this Act.
187	189		(b) Notwithstanding Section 485.044(c), Government Code, as
188	190		added by this Act, the Music, Film, Television, and Multimedia
189	191		Office shall begin accepting rebate applications as authorized
190	192		under that section beginning September 1, 2022.
191	193		SECTION 5. The Music, Film, Television, and Multimedia
192	194		Office and the comptroller of public accounts are required to
193	195		implement a provision of this Act only if the legislature
194	196		appropriates money specifically for that purpose. If the
195	197		legislature does not appropriate money specifically for that
196	198		purpose, the office and comptroller may, but are not required to,
197	199		implement a provision of this Act using other appropriations that
198	200		are available for that purpose.
199	201		SECTION 6. This Act takes effect September 1, 2021.
200		-	______________________________ ______________________________
201		-	President of the Senate Speaker of the House
202		-	I hereby certify that S.B. No. 609 passed the Senate on
203		-	April 26, 2021, by the following vote: Yeas 22, Nays 9.
204		-	______________________________
205		-	Secretary of the Senate
206		-	I hereby certify that S.B. No. 609 passed the House on
207		-	May 8, 2021, by the following vote: Yeas 102, Nays 40, one present
208		-	not voting.
209		-	______________________________
210		-	Chief Clerk of the House
211		-	Approved:
212		-	______________________________
213		-	Date
214		-	______________________________
215		-	Governor