California Music Festival Preservation Grant Program., the official text

An act to add Section 12098.9 to the Government Code, relating to music festivals.

LEGISLATIVE COUNSEL'S DIGEST

Existing law establishes the Office of Small Business Advocate within the Governor’s Office of Business and Economic Development, also known as “GO-Biz,” to and provides for the appointment by the Governor of the Small Business Advocate, also known as the Director of the Office of Small Business Advocate, to, among other things, serve as the principal advocate in the state on behalf of small businesses.
This bill would establish the California Music Festival Preservation Grant Program within the office, under the direct authority of the director, to provide grants to eligible independent live music events promoters to support their continued ability to provide equitable access to the arts for all Californians. The bill would specify requirements for eligibility and, subject to appropriation by the Legislature, would require the office to allocate the sum of $20,000,000 in grants to eligible independent live music events promoters that meet those requirements.

The people of the State of California do enact as follows:

SECTION 1.
Section 12098.9 is added to the Government Code, to read:
12098.9.
(a) The California Music Festival Preservation Grant Program is hereby established within the office.
(b) The program shall be under the direct authority of the director, and the office shall administer grants to eligible independent live music events promoters in accordance with this section.
(c) The purpose of the program is to provide grants to eligible independent live music events promoters in order to support their continued ability to provide equitable access to the arts for all Californians.
(d) For purposes of this section, “eligible independent live music events promoter” means an entity that satisfies all of the following:
(1) It is a sole proprietor, C-corporation, S-corporation, cooperative, limited liability company, partnership, limited partnership, or a nonprofit organization that is exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986.
(2) It, as a principal business activity, organizes, promotes, produces, manages, or hosts live concerts, festivals, or other events featuring performing artists at an eligible venue where both of the following take place:
(A) A cover charge through ticketing or front door entrance fee is applied.
(B) Performers are paid.
(3) At least 70 percent of the earned revenue of the entity is generated through cover charges or ticket sales, production fees, or production reimbursements, or the sale of event beverages, food, or merchandise.
(e) Subject to appropriation by the Legislature:
(1) The office shall allocate grants to eligible independent live music events promoters that meet the requirements of this section.
(2) The amount of twenty million dollars ($20,000,000) shall be allocated in one or more rounds to eligible independent live music events promoters.