Texas 2021 - 87th Regular

Texas House Bill HB2418 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R4717 MTB-D
2	2	By: Gervin-Hawkins H.B. No. 2418
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to incentives for the moving image industry in this state.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 485.021(1), Government Code, is amended
10	10	to read as follows:
11	11	(1) "In-state spending" means the amount of money
12	12	spent in Texas by a production company during the production and
13	13	completion of a moving image project, including the amount spent on
14	14	wages [to Texas residents. The term does not include wages
15	15	described by Section 485.024(b)].
16	16	SECTION 2. Section 485.022, Government Code, is amended by
17	17	amending Subsection (b) and adding Subsection (g) to read as
18	18	follows:
19	19	(b) The office shall develop a procedure for the submission
20	20	of grant applications and the awarding of grants under this
21	21	subchapter. The procedure must include provisions relating to[:
22	22	[(1) methods by which an individual's Texas residency
23	23	as described by Section 485.021(4) can be proved; and
24	24	[(2)] requirements for the submission, before
25	25	production of a moving image project begins, of:
26	26	(1) [(A)] an estimate of total in-state spending;
27	27	(2) [(B)] the shooting script or story board, as
28	28	applicable;
29	29	(3) [(C)] the estimated number of jobs for cast and
30	30	production crew during the production and completion of a moving
31	31	image project; and
32	32	(4) [(D)] any other information considered useful and
33	33	necessary by the office for an adequate and accurate analysis of a
34	34	production company's in-state spending.
35	35	(g) Notwithstanding Subsection (b), a production company is
36	36	eligible for a grant under this subchapter and is not required to
37	37	submit an application for a grant if the company produces moving
38	38	image projects that meet the qualification requirements of Section
39	39	485.023 at a production facility located in this state that is owned
40	40	by the company or a parent, subsidiary, or affiliate of the company.
41	41	A production company shall notify the office of the company's
42	42	eligibility under this subsection.
43	43	SECTION 3. Section 485.023, Government Code, is amended to
44	44	read as follows:
45	45	Sec. 485.023. QUALIFICATION. To qualify for a grant under
46	46	this subchapter:
47	47	(1) a production company must have spent a minimum of:
48	48	(A) $250,000 in in-state spending for a film or
49	49	television program; or
50	50	(B) $100,000 in in-state spending for a
51	51	commercial or series of commercials, an educational or
52	52	instructional video or series of educational or instructional
53	53	videos, or a digital interactive media production;
54	54	(2) at least 50 [70] percent of the production crew,
55	55	actors, and extras for a moving image project must be paid for their
56	56	services on the project [Texas residents unless the office
57	57	determines and certifies in writing that a sufficient number of
58	58	qualified crew, actors, and extras are not available to the company
59	59	at the time principal photography begins]; and
60	60	(3) [at least 60 percent of the moving image project
61	61	must be filmed in Texas; and
62	62	[(4)] a production company must submit to the office
63	63	an expended budget, in a format prescribed by the office, that
64	64	reflects all in-state spending and includes all receipts, invoices,
65	65	pay orders, and other documentation considered necessary by the
66	66	office to accurately determine the amount of a production company's
67	67	in-state spending that has occurred.
68	68	SECTION 4. Section 485.024, Government Code, is amended by
69	69	amending Subsection (a) and adding Subsection (a-1) to read as
70	70	follows:
71	71	(a) Except as provided by Section 485.025, the amount of a
72	72	grant under this subchapter is as follows:
73	73	(1) five percent of in-state spending on a moving
74	74	image project if the production company spent at least $250,000 but
75	75	less than $1 million on the project;
76	76	(2) 10 percent of in-state spending on a moving image
77	77	project if the production company spent at least $1 million but less
78	78	than $3.5 million on the project; or
79	79	(3) notwithstanding Subdivisions (1) and (2), 22.5
80	80	percent of in-state spending on a moving image project if at least
81	81	50 percent of the production crew, actors, and extras for the
82	82	project are from diverse ethnic backgrounds [may not exceed the
83	83	amount established by office rule].
84	84	(a-1) The office shall adopt rules prescribing the method
85	85	the office will use to calculate the amount of a grant under this
86	86	section, including the method by which the office will determine
87	87	whether the production crew, actors, and extras for a moving image
88	88	project meet the requirement of Subsection (a)(3) [subsection].
89	89	[The office shall publish a written summary of the method for
90	90	determining grants before awarding a grant under this section. The
91	91	method must consider at a minimum:
92	92	[(1) the current and likely future effect a moving
93	93	image project will have on employment, tourism, and economic
94	94	activity in this state; and
95	95	[(2) the amount of a production company's in-state
96	96	spending for a moving image project.]
97	97	SECTION 5. Section 485.025, Government Code, is amended to
98	98	read as follows:
99	99	Sec. 485.025. ADDITIONAL GRANT FOR UNDERUTILIZED AND
100	100	ECONOMICALLY DISTRESSED AREAS. In addition to the grants [grant]
101	101	calculated under Sections [Section] 485.024 and 485.0255, a
102	102	production company that spends at least 25 percent of a moving image
103	103	project's filming days in an underutilized and economically
104	104	distressed area is eligible for an additional grant in an amount
105	105	equal to 7.5 [2.5] percent of the total amount of the production
106	106	company's in-state spending for the moving image project.
107	107	SECTION 6. Subchapter B, Chapter 485, Government Code, is
108	108	amended by adding Section 485.0255 to read as follows:
109	109	Sec. 485.0255. ADDITIONAL PRODUCTION CREW GRANT. (a) In
110	110	addition to the grants calculated under Sections 485.024(a)(1) and
111	111	(2) and Section 485.025, if at least 50 percent of the production
112	112	crew, actors, and extras for a moving image project are from diverse
113	113	ethnic backgrounds, the production company is eligible for an
114	114	additional grant in an amount equal to 2.5 percent of the total
115	115	amount of the production company's in-state spending for the
116	116	project.
117	117	(b) The office shall adopt rules prescribing the method by
118	118	which the office will determine whether a production company meets
119	119	the requirement for an additional grant under this section.
120	120	SECTION 7. Chapter 485, Government Code, is amended by
121	121	adding Subchapter C to read as follows:
122	122	SUBCHAPTER C. MOVING IMAGE PRODUCTION FACILITY INCENTIVE PROGRAM
123	123	Sec. 485.041. DEFINITIONS. In this subchapter:
124	124	(1) "In-state construction spending" means the amount
125	125	of money spent by a production company on the acquisition,
126	126	construction, renovation, or lease of a production facility in this
127	127	state.
128	128	(2) "Production company" has the meaning assigned by
129	129	Section 485.021.
130	130	(3) "Production facility" means a facility and related
131	131	equipment that produce films, television programs, including
132	132	reality-based television programs, digital interactive media,
133	133	video games, or visual effects projects.
134	134	Sec. 485.042. MOVING IMAGE PRODUCTION FACILITY INCENTIVE
135	135	PROGRAM. (a) Using gifts, grants, donations, and appropriations
136	136	made available to the office for that purpose, the office shall
137	137	administer a grant program for production companies that construct
138	138	production facilities in this state.
139	139	(b) The office shall develop a procedure for the submission
140	140	of grant applications and the awarding of grants under this
141	141	subchapter. The procedure must include:
142	142	(1) requirements for the submission, before facility
143	143	construction begins, of an estimate of total in-state construction
144	144	spending; and
145	145	(2) provisions relating to the submission of other
146	146	information considered useful and necessary by the office for an
147	147	adequate and accurate analysis of a production company's
148	148	qualifications for a grant under this subchapter.
149	149	(c) The office may accept gifts, grants, and donations for
150	150	the purpose of implementing this subchapter.
151	151	Sec. 485.043. QUALIFICATION. To qualify for a production
152	152	facility grant under this subchapter, a production company must be
153	153	a:
154	154	(1) limited liability company, partnership, or
155	155	corporation formed or organized under the laws of this state; or
156	156	(2) joint venture or other legal entity in which at
157	157	least one entity that holds at least a 30 percent ownership interest
158	158	is a limited liability company, partnership, or corporation formed
159	159	or organized under the laws of this state.
160	160	Sec. 485.044. GRANT. The amount of a production facility
161	161	grant under this subchapter is determined as follows:
162	162	(1) if the production company spent at least $2
163	163	million but less than $4 million on the facility, the amount of the
164	164	grant is equal to 10 percent of in-state construction spending on
165	165	the facility; or
166	166	(2) if the production company spent at least $4
167	167	million on the facility, the amount of the grant is equal to 20
168	168	percent of in-state construction spending on the facility.
169	169	Sec. 485.045. ADDITIONAL GRANT FOR UNDERUTILIZED AND
170	170	ECONOMICALLY DISTRESSED AREAS. In addition to the grants
171	171	calculated under Sections 485.044 and 485.046, a production company
172	172	that constructs a production facility in an underutilized and
173	173	economically distressed area is eligible for an additional grant in
174	174	an amount equal to 7.5 percent of the total amount of the production
175	175	company's in-state construction spending for the facility.
176	176	Sec. 485.046. ADDITIONAL GRANT FOR CERTAIN PRODUCTION
177	177	FACILITIES. (a) In addition to the grants calculated under
178	178	Sections 485.044 and 485.045, a production company is eligible for
179	179	an additional grant in an amount equal to 2.5 percent of the total
180	180	amount of the company's in-state construction spending for a
181	181	production facility if:
182	182	(1) the company constructs the facility to produce
183	183	projects with a primary focus on persons from diverse ethnic
184	184	backgrounds; and
185	185	(2) at least 25 percent of the persons employed at the
186	186	facility are from diverse ethnic backgrounds.
187	187	(b) The office shall adopt rules prescribing the method by
188	188	which the office will determine whether a production company meets
189	189	the requirements for an additional grant under this section.
190	190	SECTION 8. The following provisions of the Government Code
191	191	are repealed:
192	192	(1) Section 485.021(4); and
193	193	(2) Section 485.024(b).
194	194	SECTION 9. The changes in law made by this Act to Chapter
195	195	485, Government Code, apply only to a grant awarded on or after the
196	196	effective date of this Act. A grant awarded before the effective
197	197	date of this Act is governed by the law in effect on the date the
198	198	award was made, and the former law is continued in effect for that
199	199	purpose.
200	200	SECTION 10. This Act takes effect September 1, 2021.