85R1106 AAF-F By: Hall S.B. No. 99 A BILL TO BE ENTITLED AN ACT relating to the abolishment of the Music, Film, Television, and Multimedia Office in the office of the governor and other incentives for media productions. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 444.030(b), Government Code, is amended to read as follows: (b) The commission shall enter into an agreement as required by Subsection (a) with the: (1) Texas [Central] Education Agency regarding the arts in education program in the public schools; and (2) office of the governor [Music, Film, Television, and Multimedia Office in the governor's office regarding work with the state's music and film industries; and [(3) Texas Department of Commerce], Texas Department of Transportation, and Parks and Wildlife Department regarding state tourism promotion efforts. SECTION 2. Section 2155.444(h), Government Code, is amended to read as follows: (h) The [Music, Film, Television, and Multimedia Office within the] office of the governor has exclusive rulemaking authority for purposes of: (1) determining whether an advertising campaign is subject to the requirements of this section; (2) establishing a bid process for purposes of the services described by Subsection (f); and (3) establishing criteria to determine whether a commercial production company or advertising agency is located in this state for the purposes of this section. SECTION 3. Section 2165.008(a)(1), Government Code, is amended to read as follows: (1) "Office" means the office of the governor [Music, Film, Television, and Multimedia Office]. SECTION 4. Section 151.317(a), Tax Code, is amended to read as follows: (a) Subject to Sections 151.1551, 151.359, and 151.3595 and Subsection (d) of this section, gas and electricity are exempted from the taxes imposed by this chapter when sold for: (1) residential use; (2) use in powering equipment exempt under Section 151.318 [or 151.3185] by a person processing tangible personal property for sale as tangible personal property, other than preparation or storage of prepared food described by Section 151.314(c-2); (3) use in lighting, cooling, and heating in the manufacturing area during the actual manufacturing or processing of tangible personal property for sale as tangible personal property, other than preparation or storage of prepared food described by Section 151.314(c-2); (4) use directly in exploring for, producing, or transporting, a material extracted from the earth; (5) use in agriculture, including dairy or poultry operations and pumping for farm or ranch irrigation; (6) use directly in electrical processes, such as electroplating, electrolysis, and cathodic protection; (7) use directly in the off-wing processing, overhaul, or repair of a jet turbine engine or its parts for a certificated or licensed carrier of persons or property; (8) use directly in providing, under contracts with or on behalf of the United States government or foreign governments, defense or national security-related electronics, classified intelligence data processing and handling systems, or defense-related platform modifications or upgrades; (9) use directly by a data center or large data center project that is certified by the comptroller as a qualifying data center under Section 151.359 or a qualifying large data center project under Section 151.3595 in the processing, storage, and distribution of data; (10) a direct or indirect use, consumption, or loss of electricity by an electric utility engaged in the purchase of electricity for resale; or (11) use in timber operations, including pumping for irrigation of timberland. SECTION 5. Section 504.639(b), Transportation Code, is amended to read as follows: (b) After deduction of the department's administrative costs, the remainder of the fee for issuance of the license plates shall be deposited to the credit of the general revenue fund [Texas Music Foundation account established by Section 7.027, Education Code]. SECTION 6. The following statutes are repealed: (1) Section 7.027, Education Code; (2) Section 403.029, Government Code; (3) Chapters 485 and 485A, Government Code; and (4) Sections 151.3185 and 151.3415, Tax Code. SECTION 7. (a) The Music, Film, Television, and Multimedia Office in the office of the governor is abolished. (b) All records and other property in the custody of the Music, Film, Television, and Multimedia Office are transferred to the office of the governor. (c) All unobligated and unexpended appropriations of the Music, Film, Television, and Multimedia Office lapse. (d) All donations, gifts, and grants made to the Music, Film, Television, and Multimedia Office shall be transferred to the office of the governor to be used for purposes consistent with the mission of the Music, Film, Television, and Multimedia Office. SECTION 8. The changes in law made by this Act to Sections 151.317, 151.3185, and 151.3415, Tax Code, do not affect tax liability accruing before the effective date of this Act. That liability continues in effect as if this Act had not been enacted, and the former law is continued in effect for the collection of taxes due and for civil and criminal enforcement of the liability for those taxes. SECTION 9. This Act takes effect September 1, 2017.