TX
Texas House Bill HB2417

Texas 2021 - 87th Regular

Texas House Bill HB2417 Compare Versions

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1-87R19589 MTB-D
2- By: Gervin-Hawkins, Price H.B. No. 2417
3- Substitute the following for H.B. No. 2417:
4- By: Clardy C.S.H.B. No. 2417
1+87R4717 MTB-D
2+ By: Gervin-Hawkins H.B. No. 2417
53
64
75 A BILL TO BE ENTITLED
86 AN ACT
9- relating to incentives for media production facilities in this
10- state.
7+ relating to incentives for the moving image industry in this state.
118 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12- SECTION 1. Section 485A.002(3), Government Code, is amended
9+ SECTION 1. Section 485.021(1), Government Code, is amended
1310 to read as follows:
14- (3) "Moving image project" means a visual and sound
15- production, including a film, a television program, streaming
16- content, a national or multistate commercial, or a digital
17- interactive media production. The term does not include a
18- production that is obscene, as defined by Section 43.21, Penal
19- Code.
20- SECTION 2. Chapter 485A, Government Code, is amended by
21- adding Subchapter G to read as follows:
22- SUBCHAPTER G. MEDIA PRODUCTION FACILITY INCENTIVE PROGRAM
23- Sec. 485A.301. DEFINITIONS. In this subchapter:
11+ (1) "In-state spending" means the amount of money
12+ spent in Texas by a production company during the production and
13+ completion of a moving image project, including the amount spent on
14+ wages [to Texas residents. The term does not include wages
15+ described by Section 485.024(b)].
16+ SECTION 2. Section 485.022, Government Code, is amended by
17+ amending Subsection (b) and adding Subsection (g) to read as
18+ follows:
19+ (b) The office shall develop a procedure for the submission
20+ of grant applications and the awarding of grants under this
21+ subchapter. The procedure must include provisions relating to[:
22+ [(1) methods by which an individual's Texas residency
23+ as described by Section 485.021(4) can be proved; and
24+ [(2)] requirements for the submission, before
25+ production of a moving image project begins, of:
26+ (1) [(A)] an estimate of total in-state spending;
27+ (2) [(B)] the shooting script or story board, as
28+ applicable;
29+ (3) [(C)] the estimated number of jobs for cast and
30+ production crew during the production and completion of a moving
31+ image project; and
32+ (4) [(D)] any other information considered useful and
33+ necessary by the office for an adequate and accurate analysis of a
34+ production company's in-state spending.
35+ (g) Notwithstanding Subsection (b), a production company is
36+ eligible for a grant under this subchapter and is not required to
37+ submit an application for a grant if the company produces moving
38+ image projects that meet the qualification requirements of Section
39+ 485.023 at a production facility located in this state that is owned
40+ by the company or a parent, subsidiary, or affiliate of the company.
41+ A production company shall notify the office of the company's
42+ eligibility under this subsection.
43+ SECTION 3. Section 485.023, Government Code, is amended to
44+ read as follows:
45+ Sec. 485.023. QUALIFICATION. To qualify for a grant under
46+ this subchapter:
47+ (1) a production company must have spent a minimum of:
48+ (A) $250,000 in in-state spending for a film or
49+ television program; or
50+ (B) $100,000 in in-state spending for a
51+ commercial or series of commercials, an educational or
52+ instructional video or series of educational or instructional
53+ videos, or a digital interactive media production;
54+ (2) at least 50 [70] percent of the production crew,
55+ actors, and extras for a moving image project must be paid for their
56+ services on the project [Texas residents unless the office
57+ determines and certifies in writing that a sufficient number of
58+ qualified crew, actors, and extras are not available to the company
59+ at the time principal photography begins]; and
60+ (3) [at least 60 percent of the moving image project
61+ must be filmed in Texas; and
62+ [(4)] a production company must submit to the office
63+ an expended budget, in a format prescribed by the office, that
64+ reflects all in-state spending and includes all receipts, invoices,
65+ pay orders, and other documentation considered necessary by the
66+ office to accurately determine the amount of a production company's
67+ in-state spending that has occurred.
68+ SECTION 4. Section 485.024, Government Code, is amended by
69+ amending Subsection (a) and adding Subsection (a-1) to read as
70+ follows:
71+ (a) Except as provided by Section 485.025, the amount of a
72+ grant under this subchapter is as follows:
73+ (1) five percent of in-state spending on a moving
74+ image project if the production company spent at least $250,000 but
75+ less than $1 million on the project;
76+ (2) 10 percent of in-state spending on a moving image
77+ project if the production company spent at least $1 million but less
78+ than $3.5 million on the project; or
79+ (3) notwithstanding Subdivisions (1) and (2), 22.5
80+ percent of in-state spending on a moving image project if at least
81+ 50 percent of the production crew, actors, and extras for the
82+ project are from diverse ethnic backgrounds [may not exceed the
83+ amount established by office rule].
84+ (a-1) The office shall adopt rules prescribing the method
85+ the office will use to calculate the amount of a grant under this
86+ section, including the method by which the office will determine
87+ whether the production crew, actors, and extras for a moving image
88+ project meet the requirement of Subsection (a)(3) [subsection].
89+ [The office shall publish a written summary of the method for
90+ determining grants before awarding a grant under this section. The
91+ method must consider at a minimum:
92+ [(1) the current and likely future effect a moving
93+ image project will have on employment, tourism, and economic
94+ activity in this state; and
95+ [(2) the amount of a production company's in-state
96+ spending for a moving image project.]
97+ SECTION 5. Section 485.025, Government Code, is amended to
98+ read as follows:
99+ Sec. 485.025. ADDITIONAL GRANT FOR UNDERUTILIZED AND
100+ ECONOMICALLY DISTRESSED AREAS. In addition to the grants [grant]
101+ calculated under Sections [Section] 485.024 and 485.0255, a
102+ production company that spends at least 25 percent of a moving image
103+ project's filming days in an underutilized and economically
104+ distressed area is eligible for an additional grant in an amount
105+ equal to 7.5 [2.5] percent of the total amount of the production
106+ company's in-state spending for the moving image project.
107+ SECTION 6. Subchapter B, Chapter 485, Government Code, is
108+ amended by adding Section 485.0255 to read as follows:
109+ Sec. 485.0255. ADDITIONAL PRODUCTION CREW GRANT. (a) In
110+ addition to the grants calculated under Sections 485.024(a)(1) and
111+ (2) and Section 485.025, if at least 50 percent of the production
112+ crew, actors, and extras for a moving image project are from diverse
113+ ethnic backgrounds, the production company is eligible for an
114+ additional grant in an amount equal to 2.5 percent of the total
115+ amount of the production company's in-state spending for the
116+ project.
117+ (b) The office shall adopt rules prescribing the method by
118+ which the office will determine whether a production company meets
119+ the requirement for an additional grant under this section.
120+ SECTION 7. Chapter 485, Government Code, is amended by
121+ adding Subchapter C to read as follows:
122+ SUBCHAPTER C. MOVING IMAGE PRODUCTION FACILITY INCENTIVE PROGRAM
123+ Sec. 485.041. DEFINITIONS. In this subchapter:
24124 (1) "In-state construction spending" means the amount
25125 of money spent by a production company on the acquisition,
26- construction, renovation, or lease of a media production facility.
126+ construction, renovation, or lease of a production facility in this
127+ state.
27128 (2) "Production company" has the meaning assigned by
28129 Section 485.021.
29- Sec. 485A.302. MEDIA PRODUCTION FACILITY INCENTIVE
130+ (3) "Production facility" means a facility and related
131+ equipment that produce films, television programs, including
132+ reality-based television programs, digital interactive media,
133+ video games, or visual effects projects.
134+ Sec. 485.042. MOVING IMAGE PRODUCTION FACILITY INCENTIVE
30135 PROGRAM. (a) Using gifts, grants, donations, and appropriations
31136 made available to the office for that purpose, the office shall
32137 administer a grant program for production companies that construct
33- media production facilities at a qualified media production
34- location.
138+ production facilities in this state.
35139 (b) The office shall develop a procedure for the submission
36140 of grant applications and the awarding of grants under this
37141 subchapter. The procedure must include:
38142 (1) requirements for the submission, before facility
39143 construction begins, of an estimate of total in-state construction
40144 spending; and
41145 (2) provisions relating to the submission of other
42146 information considered useful and necessary by the office for an
43147 adequate and accurate analysis of a production company's
44148 qualifications for a grant under this subchapter.
45- (c) A production company is not required to reapply for a
46- grant under this subchapter for each year of the 10-year period
47- described by Section 485A.303(2).
48- (d) The office may accept gifts, grants, and donations for
149+ (c) The office may accept gifts, grants, and donations for
49150 the purpose of implementing this subchapter.
50- Sec. 485A.303. QUALIFICATION. To qualify for a media
51- production facility grant under this subchapter, a production
52- company must:
53- (1) be a:
54- (A) limited liability company, partnership, or
151+ Sec. 485.043. QUALIFICATION. To qualify for a production
152+ facility grant under this subchapter, a production company must be
153+ a:
154+ (1) limited liability company, partnership, or
55155 corporation formed or organized under the laws of this state; or
56- (B) joint venture or other legal entity in which
57- at least one entity that holds at least a 30 percent ownership
58- interest is a limited liability company, partnership, or
59- corporation formed or organized under the laws of this state; and
60- (2) commit to constructing a media production facility
61- and producing moving image projects for a 10-year period.
62- Sec. 485A.304. GRANT. The amount of a media production
63- facility grant under this subchapter is determined as follows:
156+ (2) joint venture or other legal entity in which at
157+ least one entity that holds at least a 30 percent ownership interest
158+ is a limited liability company, partnership, or corporation formed
159+ or organized under the laws of this state.
160+ Sec. 485.044. GRANT. The amount of a production facility
161+ grant under this subchapter is determined as follows:
64162 (1) if the production company spent at least $2
65163 million but less than $4 million on the facility, the amount of the
66164 grant is equal to 10 percent of in-state construction spending on
67165 the facility; or
68166 (2) if the production company spent at least $4
69167 million on the facility, the amount of the grant is equal to 20
70168 percent of in-state construction spending on the facility.
71- Sec. 485A.305. ADDITIONAL GRANT FOR UNDERUTILIZED AND
169+ Sec. 485.045. ADDITIONAL GRANT FOR UNDERUTILIZED AND
72170 ECONOMICALLY DISTRESSED AREAS. In addition to the grants
73- calculated under Sections 485A.304 and 485A.306, a production
74- company that constructs a media production facility in an
75- underutilized and economically distressed area is eligible for an
76- additional grant in an amount equal to 7.5 percent of the total
77- amount of the production company's in-state construction spending
78- for the facility.
79- Sec. 485A.306. ADDITIONAL GRANT FOR CERTAIN MEDIA
80- PRODUCTION FACILITIES. (a) In addition to the grants calculated
81- under Sections 485A.304 and 485A.305, a production company is
82- eligible for an additional grant in an amount equal to 7.5 percent
83- of the total amount of the company's in-state construction spending
84- for a media production facility if:
171+ calculated under Sections 485.044 and 485.046, a production company
172+ that constructs a production facility in an underutilized and
173+ economically distressed area is eligible for an additional grant in
174+ an amount equal to 7.5 percent of the total amount of the production
175+ company's in-state construction spending for the facility.
176+ Sec. 485.046. ADDITIONAL GRANT FOR CERTAIN PRODUCTION
177+ FACILITIES. (a) In addition to the grants calculated under
178+ Sections 485.044 and 485.045, a production company is eligible for
179+ an additional grant in an amount equal to 2.5 percent of the total
180+ amount of the company's in-state construction spending for a
181+ production facility if:
85182 (1) the company constructs the facility to produce
86- projects with a focus on persons from diverse ethnic backgrounds;
87- and
88- (2) at least 35 percent of the persons employed at the
89- facility are women or are from diverse ethnic backgrounds.
183+ projects with a primary focus on persons from diverse ethnic
184+ backgrounds; and
185+ (2) at least 25 percent of the persons employed at the
186+ facility are from diverse ethnic backgrounds.
90187 (b) The office shall adopt rules prescribing the method by
91188 which the office will determine whether a production company meets
92189 the requirements for an additional grant under this section.
93- SECTION 3. This Act takes effect September 1, 2021.
190+ SECTION 8. The following provisions of the Government Code
191+ are repealed:
192+ (1) Section 485.021(4); and
193+ (2) Section 485.024(b).
194+ SECTION 9. The changes in law made by this Act to Chapter
195+ 485, Government Code, apply only to a grant awarded on or after the
196+ effective date of this Act. A grant awarded before the effective
197+ date of this Act is governed by the law in effect on the date the
198+ award was made, and the former law is continued in effect for that
199+ purpose.
200+ SECTION 10. This Act takes effect September 1, 2021.