20250SB__037098AMD INTRODUCED 2025-02-13 AMENDED_SENATE 2025-03-25 2025 SB AMD Introduced by Senator Ashby LEAD_AUTHOR SENATE Ashby

An act to add

Section 12098.9 to the Government Code, relating to music festivals. music festivals California Music Festival Preservation Grant Program. 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.

MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

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 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. <caml:Num>SECTION 1.</caml:Num><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>It is the intent of the Legislature to enact legislation that would provide equitable access and economic development opportunities for music festivals.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>The Legislature finds and declares all of the following regarding enhancing equitable access to music festivals:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>Music festivals and large community gatherings have a significant economic impact on local cities and the State of California.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>In 2023, a study found that percent of surveyed adults in the United States had attended a music festival more than once.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>Music festivals attract visitors, which increases sales at local businesses, including restaurants, hotels, retails shops, transportation businesses, and other services.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>Music festivals create temporary and permanent jobs, such as security, catering, vendors, transportation, event staff, and artists.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>The success of music festivals attracts investments in real estate, local businesses, and other sectors in cities that host music festivals.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>Music festivals attract businesses throughout the host city and serve as national and international tourist destinations.</xhtml:p></caml:Content></caml:BillSection>"?>