By: Alvarado, Eckhardt S.B. No. 609     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.