87R10274 BEE-D     By: Buckingham S.B. No. 1404       A BILL TO BE ENTITLED   AN ACT   relating to the certification of live music venues by and other   duties of the Texas Music Office.          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 OFFICE          Sec. 485.051.  DEFINITIONS. In this subchapter:                (1)  "Certification holder" means an individual or   entity that holds a certification issued by the music office as an   independent live music venue, operator, producer, or promoter under   this subchapter.                (2)  "Music office" means the Texas Music Office in the   office of the governor.          Sec. 485.052.  DUTIES. The music office shall:                (1)  administer and oversee federal programs in this   state supporting independent live music venues, operators,   producers, or promoters, including monitoring changes to those   programs to ensure efficient implementation;                (2)  in accordance with Section 485.053, issue   certifications to independent live music venues, operators,   producers, and promoters for the purpose of administering and   overseeing programs described by Subdivision (1); and                (3)  ensure each certification holder maintains   compliance with the requirements for certification under this   subchapter.          Sec. 485.053.  CERTIFICATION ISSUANCE. (a) Subject to   Subsections (b) and (c), the music office shall issue a   certification as an independent live music venue, operator,   producer, or promoter, for purposes of any federal program   requiring such certification, to an individual or entity that:                (1)  organizes, promotes, sells tickets, produces,   manages, or hosts live concerts;                (2)  generates at least 60 percent of the individual's   or entity's primary business revenue from:                      (A)  entrance fees or ticket sales and fees;                      (B)  production reimbursements; and                      (C)  the sale of beverages, food, and merchandise   at events;                (3)  has operated its primary business in this state   for at least one year preceding certification;                (4)  pays artists fairly in an amount that is:                      (A)  based on:                            (i)  a percentage of sales;                            (ii)  a guarantee in writing or in a standard   contract; or                            (iii)  any other mutually beneficial formal   agreement; and                      (B)  not based solely on tips, unless the artist   is participating in a legitimate fundraiser or similar charitable   event; and                (5)  meets at least five of the following criteria:                      (A)  markets live music performances through   listings in printed or electronic publications;                      (B)  provides live music performances four or more   nights of each week;                      (C)  employs or contracts the services of one or   more persons in two or more of the following positions or services:                            (i)  sound engineer;                            (ii)  booker;                            (iii)  promoter;                            (iv)  stage manager; or                            (v)  security personnel;                      (D)  has designated live performance and audience   space;                      (E)  provides technical sound and lighting,   either in-house or through a contract with a vendor;                      (F)  has a dedicated space for the storage of   audio equipment or musical instruments;                      (G)  charges for live music performances through   ticketing or imposing an entrance fee; or                      (H)  maintains hours of operation that coincide   with live music performance show times.          (b)  The music office may not issue a certification as an   independent live music venue, operator, producer, or promoter to an   individual or entity that:                (1)  presents live performances of a prurient sexual   nature, as determined by the music office; or                (2)  derives directly or indirectly a more than de   minimis gross revenue, as determined by the music office, through:                      (A)  the sale of products or services of a   prurient sexual nature; or                      (B)  the presentation of any depictions or   displays of a prurient sexual nature.          (c)  The music office may not issue a certification as an   independent live music venue, operator, producer, or promoter to an   individual or entity unless the individual or entity:                (1)  employs as full-time equivalents 50 or more   employees or contractors;                (2)  derives not less than 10 percent of the   individual's or entity's gross revenue from federal funding; or                (3)  is majority-owned, controlled, or operated by an   individual or entity described by Subdivisions (1) and (2).          SECTION 2.  This Act takes effect September 1, 2021.