87R4717 MTB-D
By: Gervin-Hawkins H.B. No. 2417
A BILL TO BE ENTITLED
AN ACT
relating to incentives for the moving image industry in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 485.021(1), Government Code, is amended
to read as follows:
(1) "In-state spending" means the amount of money
spent in Texas by a production company during the production and
completion of a moving image project, including the amount spent on
wages [to Texas residents. The term does not include wages
described by Section 485.024(b)].
SECTION 2. Section 485.022, Government Code, is amended by
amending Subsection (b) and adding Subsection (g) to read as
follows:
(b) The office shall develop a procedure for the submission
of grant applications and the awarding of grants under this
subchapter. The procedure must include provisions relating to[:
[(1) methods by which an individual's Texas residency
as described by Section 485.021(4) can be proved; and
[(2)] requirements for the submission, before
production of a moving image project begins, of:
(1) [(A)] an estimate of total in-state spending;
(2) [(B)] the shooting script or story board, as
applicable;
(3) [(C)] the estimated number of jobs for cast and
production crew during the production and completion of a moving
image project; and
(4) [(D)] any other information considered useful and
necessary by the office for an adequate and accurate analysis of a
production company's in-state spending.
(g) Notwithstanding Subsection (b), a production company is
eligible for a grant under this subchapter and is not required to
submit an application for a grant if the company produces moving
image projects that meet the qualification requirements of Section
485.023 at a production facility located in this state that is owned
by the company or a parent, subsidiary, or affiliate of the company.
A production company shall notify the office of the company's
eligibility under this subsection.
SECTION 3. Section 485.023, Government Code, is amended to
read as follows:
Sec. 485.023. QUALIFICATION. To qualify for a grant under
this subchapter:
(1) a production company must have spent a minimum of:
(A) $250,000 in in-state spending for a film or
television program; or
(B) $100,000 in in-state spending for a
commercial or series of commercials, an educational or
instructional video or series of educational or instructional
videos, or a digital interactive media production;
(2) at least 50 [70] percent of the production crew,
actors, and extras for a moving image project must be paid for their
services on the project [Texas residents unless the office
determines and certifies in writing that a sufficient number of
qualified crew, actors, and extras are not available to the company
at the time principal photography begins]; and
(3) [at least 60 percent of the moving image project
must be filmed in Texas; and
[(4)] a production company must submit to the office
an expended budget, in a format prescribed by the office, that
reflects all in-state spending and includes all receipts, invoices,
pay orders, and other documentation considered necessary by the
office to accurately determine the amount of a production company's
in-state spending that has occurred.
SECTION 4. Section 485.024, Government Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) Except as provided by Section 485.025, the amount of a
grant under this subchapter is as follows:
(1) five percent of in-state spending on a moving
image project if the production company spent at least $250,000 but
less than $1 million on the project;
(2) 10 percent of in-state spending on a moving image
project if the production company spent at least $1 million but less
than $3.5 million on the project; or
(3) notwithstanding Subdivisions (1) and (2), 22.5
percent of in-state spending on a moving image project if at least
50 percent of the production crew, actors, and extras for the
project are from diverse ethnic backgrounds [may not exceed the
amount established by office rule].
(a-1) The office shall adopt rules prescribing the method
the office will use to calculate the amount of a grant under this
section, including the method by which the office will determine
whether the production crew, actors, and extras for a moving image
project meet the requirement of Subsection (a)(3) [subsection].
[The office shall publish a written summary of the method for
determining grants before awarding a grant under this section. The
method must consider at a minimum:
[(1) the current and likely future effect a moving
image project will have on employment, tourism, and economic
activity in this state; and
[(2) the amount of a production company's in-state
spending for a moving image project.]
SECTION 5. Section 485.025, Government Code, is amended to
read as follows:
Sec. 485.025. ADDITIONAL GRANT FOR UNDERUTILIZED AND
ECONOMICALLY DISTRESSED AREAS. In addition to the grants [grant]
calculated under Sections [Section] 485.024 and 485.0255, a
production company that spends at least 25 percent of a moving image
project's filming days in an underutilized and economically
distressed area is eligible for an additional grant in an amount
equal to 7.5 [2.5] percent of the total amount of the production
company's in-state spending for the moving image project.
SECTION 6. Subchapter B, Chapter 485, Government Code, is
amended by adding Section 485.0255 to read as follows:
Sec. 485.0255. ADDITIONAL PRODUCTION CREW GRANT. (a) In
addition to the grants calculated under Sections 485.024(a)(1) and
(2) and Section 485.025, if at least 50 percent of the production
crew, actors, and extras for a moving image project are from diverse
ethnic backgrounds, the production company is eligible for an
additional grant in an amount equal to 2.5 percent of the total
amount of the production company's in-state spending for the
project.
(b) The office shall adopt rules prescribing the method by
which the office will determine whether a production company meets
the requirement for an additional grant under this section.
SECTION 7. Chapter 485, Government Code, is amended by
adding Subchapter C to read as follows:
SUBCHAPTER C. MOVING IMAGE PRODUCTION FACILITY INCENTIVE PROGRAM
Sec. 485.041. DEFINITIONS. In this subchapter:
(1) "In-state construction spending" means the amount
of money spent by a production company on the acquisition,
construction, renovation, or lease of a production facility in this
state.
(2) "Production company" has the meaning assigned by
Section 485.021.
(3) "Production facility" means a facility and related
equipment that produce films, television programs, including
reality-based television programs, digital interactive media,
video games, or visual effects projects.
Sec. 485.042. MOVING IMAGE PRODUCTION FACILITY INCENTIVE
PROGRAM. (a) Using gifts, grants, donations, and appropriations
made available to the office for that purpose, the office shall
administer a grant program for production companies that construct
production facilities in this state.
(b) The office shall develop a procedure for the submission
of grant applications and the awarding of grants under this
subchapter. The procedure must include:
(1) requirements for the submission, before facility
construction begins, of an estimate of total in-state construction
spending; and
(2) provisions relating to the submission of other
information considered useful and necessary by the office for an
adequate and accurate analysis of a production company's
qualifications for a grant under this subchapter.
(c) The office may accept gifts, grants, and donations for
the purpose of implementing this subchapter.
Sec. 485.043. QUALIFICATION. To qualify for a production
facility grant under this subchapter, a production company must be
a:
(1) limited liability company, partnership, or
corporation formed or organized under the laws of this state; or
(2) joint venture or other legal entity in which at
least one entity that holds at least a 30 percent ownership interest
is a limited liability company, partnership, or corporation formed
or organized under the laws of this state.
Sec. 485.044. GRANT. The amount of a production facility
grant under this subchapter is determined as follows:
(1) if the production company spent at least $2
million but less than $4 million on the facility, the amount of the
grant is equal to 10 percent of in-state construction spending on
the facility; or
(2) if the production company spent at least $4
million on the facility, the amount of the grant is equal to 20
percent of in-state construction spending on the facility.
Sec. 485.045. ADDITIONAL GRANT FOR UNDERUTILIZED AND
ECONOMICALLY DISTRESSED AREAS. In addition to the grants
calculated under Sections 485.044 and 485.046, a production company
that constructs a production facility in an underutilized and
economically distressed area is eligible for an additional grant in
an amount equal to 7.5 percent of the total amount of the production
company's in-state construction spending for the facility.
Sec. 485.046. ADDITIONAL GRANT FOR CERTAIN PRODUCTION
FACILITIES. (a) In addition to the grants calculated under
Sections 485.044 and 485.045, a production company is eligible for
an additional grant in an amount equal to 2.5 percent of the total
amount of the company's in-state construction spending for a
production facility if:
(1) the company constructs the facility to produce
projects with a primary focus on persons from diverse ethnic
backgrounds; and
(2) at least 25 percent of the persons employed at the
facility are from diverse ethnic backgrounds.
(b) The office shall adopt rules prescribing the method by
which the office will determine whether a production company meets
the requirements for an additional grant under this section.
SECTION 8. The following provisions of the Government Code
are repealed:
(1) Section 485.021(4); and
(2) Section 485.024(b).
SECTION 9. The changes in law made by this Act to Chapter
485, Government Code, apply only to a grant awarded on or after the
effective date of this Act. A grant awarded before the effective
date of this Act is governed by the law in effect on the date the
award was made, and the former law is continued in effect for that
purpose.
SECTION 10. This Act takes effect September 1, 2021.