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California bill to create $20 million festival grant program wins committee support over fiscal objections
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Summary
SB 865 would create a GO‑Biz-administered Music Festival Preservation Grant to support multi-day independent festivals; proponents said festivals generate millions in local economic activity, while at least one senator questioned allocating $20 million in grants during a deficit year.
The Senate Business and Professions Committee voted to move SB 865, the Music Festival Preservation Act, to the Senate Appropriations Committee after a robust presentation from industry and local tourism representatives and a fiscal concern raised by a committee member.
Sponsor testimony described the bill as a way to create a grant program within the Governor’s Office of Business and Economic Development (GO‑Biz) to help multi‑day independent music festivals cover rising production costs and remain in California. "Music festivals have a profound economic impact in the state of California," the bill’s author said, citing examples presented by Visit Sacramento and festival promoters.
Mike Testa, identified as president and CEO of Visit Sacramento, said festivals such as Aftershock bring substantial hotel room nights, jobs and regional economic activity; Testa told senators Aftershock generated roughly $41 million regionally and drove hotel nights and job creation.
Dylan Welsh of Danny Wimmer Presents said independent festivals face steep upfront costs and rapid increases in operating expenses; he cited industry studies and said targeted support would preserve events that deliver measurable economic impact.
Several trade groups and local officials, including the National Independent Venue Association and the California Travel Association, voiced support. Senator Strickland and others praised the bill’s economic focus.
Senator Choi said she could not support authorizing a $20 million grant pool during a deficit year and questioned whether the state should subsidize events that may generate multimillion‑dollar profits for promoters. "Why the state has to give $20,000,000 set aside during this deficit year?" she asked.
After discussion, the committee recorded the motion to pass the bill to Appropriations. The committee recorded committee votes and placed the item on the session’s calendar for further consideration.
SB 865 now proceeds to the Senate Appropriations Committee, where members will weigh program design, eligibility criteria and fiscal effects.
