SB865 - California Music Festival Preservation Grant Program.

Enrolled August 28, 2026 Passed IN Senate August 26, 2026 Passed IN Assembly August 25, 2026 Amended IN Assembly August 20, 2026 Amended IN Assembly June 15, 2026 Amended IN Senate April 14, 2026 Amended IN Senate March 24, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 865 Introduced by Senator Ashby January 05, 2026 An act to add Section 12098.9 to the Government Code, relating to music festivals. LEGISLATIVE COUNSEL'S DIGEST SB 865, Ashby. California Music Festival Preservation Grant Program. Existing law establishes the Office of Small Business Advocate “SBA”, within the Governor’s Office of Business and Economic Development, also known as “GO-Biz,” 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 SBA, under the direct authority of the director, to provide grants to eligible independent live music events promoters to preserve large-scale music festivals and 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, as specified. The bill would exempt the SBA from the Administrative Procedure Act for purposes of implementing the program. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text 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) For purposes of this section, a “host jurisdiction” means a governmental entity or political subdivision of the state that owns or has an interest in the venue or region where the multiday music festival occurs. Region includes a physical or cultural region. (c) The California Music Festival Preservation Grant 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. (d) The purpose of the California Music Festival Preservation Grant 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, and to preserve large-scale music festivals that generate significant cultural, tourism, and economic benefits for the state and its local communities. (e) To be eligible to receive a grant under the California Music Festival Preservation Grant Program, an independent live music festival promoter shall satisfy all of the following requirements: (1) The entity is privately owned. (2) The entity is organized as a sole proprietorship, 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. (3) The entity, as a principal business activity, organizes, promotes, produces, manages, or hosts at least one festival featuring persons or groups that perform live musical entertainment at a venue in California on publicly owned lands where all of the following are met: (A) Admission to the festival performances requires a paid ticket or cover charge. (B) Performing artists are compensated and do not perform without compensation or solely for tips. (C) The festival occurs annually in a host jurisdiction. (D) The festival features a minimum of 40 live music acts. (E) The festival generates a minimum of 60,000 total paid admissions over its duration. (4) The entity has entered into a multiyear agreement for the operation of a multiday music festival with the local tourism authority or the appropriate political subdivision of the host jurisdiction. (5) The entity demonstrates support for local businesses, performers, and the host jurisdiction by doing all of the following at the festival: (A) Serving no fewer than three different beers produced by a local brewery whose principal place of business is located within the host jurisdiction. (B) Serving no fewer than two wines produced by a winery whose principal place of business is located within the host jurisdiction. (C) Showcasing no fewer than three performances featuring live musical entertainment by performers who are local to, or based in, the host jurisdiction. (D) Providing meaningful promotion of the host jurisdiction in coordination with the local tourism authority or the appropriate political subdivision of the host jurisdiction. (f) 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. (3) No more than 5 percent may be used by the office for administrative costs associated with the program from any amount appropriated for purposes of the California Music Festival Preservation Grant Program, including costs associated with a contractor, fiscal agent, or third-party administrator. The remaining amount shall be available for grant awards pursuant to this section. (4) Each grant award shall be in the amount of three million dollars ($3,000,000). An eligible independent live music events promoter shall not receive more than one grant award pursuant to this section in a fiscal year. (g) The office shall administer the grant program as follows: (1) (A) The office shall administer two grant rounds during each year. One grant round shall open in January and one grant round shall open in July. (B) An applicant shall submit an application during the grant round for which the date that the grant awards are made immediately precedes the festival for which the grant is sought. The office shall establish the grant round application periods in a manner that provides each eligible applicant an opportunity to apply for and receive a grant award before the festival. (C) For purposes of determining eligibility and making a grant award before the festival, an applicant may demonstrate compliance with the eligibility requirements of subdivision (e) based on the most recent prior occurrence of the festival for which the grant is sought. (D) A grant awarded pursuant to this section shall be disbursed following the conclusion of the festival. No later than 90 days following the conclusion of the festival, the grant recipient shall submit documentation reasonably demonstrating that the festival has satisfied the applicable eligibility requirements of subdivision (e). Upon submission of that documentation, the office shall disburse the grant award. (2) (A) The office shall establish application procedures and guidelines to implement this section, including guidelines specifying acceptable documentation to demonstrate compliance with subdivision (e). (B) The office shall accept standard business records, executed contracts, or other documentation that reasonably demonstrates eligibility. The office shall not require documentation beyond what is reasonably necessary. (C) The office shall permit an applicant to redact confidential or proprietary information from submitted documentation if the redaction does not prevent the office from determining eligibility. (D) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1) does not apply to any regulation, standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the office pursuant to this section.