Texas 2021 - 87th Regular

Texas House Bill HB2854 Compare Versions

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

Old	New	Differences
1	1	87R5590 MTB-D
2	2	By: Price H.B. No. 2854
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of a Texas film and entertainment industry
8	8	incentive program.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 485, Government Code, is amended by
11	11	adding Subchapter C to read as follows:
12	12	SUBCHAPTER C. TEXAS FILM AND ENTERTAINMENT INDUSTRY INCENTIVE
13	13	PROGRAM
14	14	Sec. 485.041. DEFINITIONS. In this subchapter:
15	15	(1) "In-state construction spending" means the amount
16	16	of money spent by a production company on the construction of a
17	17	production facility in this state.
18	18	(2) "In-state spending" means the amount of money
19	19	spent in this state by a production company during the production
20	20	and completion of a project.
21	21	(3) "Production company" has the meaning assigned by
22	22	Section 485.021.
23	23	(4) "Production facility" means a facility that
24	24	produces films, television programs including reality-based
25	25	television programs, digital interactive media, commercials, or
26	26	educational or instructional videos.
27	27	(5) "Project" means a film, television program
28	28	including a reality-based television program, digital interactive
29	29	media, commercial, or educational or instructional video
30	30	production. The term includes a visual effects project.
31	31	(6) "Underutilized and economically distressed area"
32	32	has the meaning assigned by Section 485.021.
33	33	Sec. 485.042. TEXAS FILM AND ENTERTAINMENT INDUSTRY
34	34	INCENTIVE PROGRAM. (a) Using gifts, grants, donations, and
35	35	appropriations made available to the office for that purpose, the
36	36	office shall administer a grant program for production companies
37	37	that:
38	38	(1) produce projects in this state; or
39	39	(2) construct production facilities in this state.
40	40	(b) The office shall develop a procedure for the submission
41	41	of grant applications and the awarding of grants under this
42	42	subchapter. The procedure must include:
43	43	(1) requirements for the submission, before project
44	44	production or facility construction begins, of:
45	45	(A) an estimate of total in-state spending or
46	46	in-state construction spending, as applicable; and
47	47	(B) the estimated number of jobs for cast and
48	48	production crew during the production and completion of the
49	49	project, if applicable; and
50	50	(2) provisions relating to the submission of other
51	51	information considered useful and necessary by the office for an
52	52	adequate and accurate analysis of a production company's
53	53	qualifications for a grant under this subchapter.
54	54	(c) The office may accept gifts, grants, and donations for
55	55	the purpose of implementing this subchapter.
56	56	Sec. 485.043. QUALIFICATION. (a) To qualify for a
57	57	production facility or project production grant under this
58	58	subchapter, a production company must be a:
59	59	(1) limited liability company, partnership, or
60	60	corporation formed or organized under the laws of this state; or
61	61	(2) joint venture or other legal entity in which at
62	62	least one entity that holds at least a 30 percent ownership interest
63	63	is a limited liability company, partnership, or corporation formed
64	64	or organized under the laws of this state.
65	65	(b) To qualify for a production facility grant under this
66	66	subchapter, a production company must:
67	67	(1) have spent a minimum of $2.5 million in
68	68	constructing a production facility in this state;
69	69	(2) employ at least 15 full-time employees who are
70	70	residents of this state; and
71	71	(3) show that at least 80 percent of all services used
72	72	in the design and construction of the production facility are
73	73	provided by businesses that have their principal place of business
74	74	in this state.
75	75	(c) To qualify for a project production grant under this
76	76	subchapter, a production company must meet the qualifications for a
77	77	grant under Subchapter B as provided by Section 485.023.
78	78	Sec. 485.044. GRANT. (a) The amount of a production
79	79	facility grant under this subchapter is determined as follows:
80	80	(1) if the production company spent at least $2.5
81	81	million but less than $5 million on the facility, the amount of the
82	82	grant is equal to 10 percent of in-state construction spending on
83	83	the facility;
84	84	(2) if the production company spent at least $5
85	85	million but less than $10 million on the facility, the amount of the
86	86	grant is equal to 20 percent of in-state construction spending on
87	87	the facility; or
88	88	(3) if the production company spent at least $10
89	89	million on the facility, the amount of the grant is equal to 25
90	90	percent of in-state construction spending on the facility.
91	91	(b) The amount of a project production grant under this
92	92	subchapter is determined as follows:
93	93	(1) for a film or television program project the
94	94	amount of the grant is equal to:
95	95	(A) 10 percent of in-state spending on the
96	96	project if the production company spent at least $250,000 but less
97	97	than $1 million on the project;
98	98	(B) 20 percent of in-state spending on the
99	99	project if the production company spent at least $1 million but less
100	100	than $3.5 million on the project; or
101	101	(C) 30 percent of in-state spending on the
102	102	project if the production company spent at least $3.5 million on the
103	103	project;
104	104	(2) for a digital interactive media project the amount
105	105	of the grant is equal to:
106	106	(A) 10 percent of in-state spending on the
107	107	project if the production company spent at least $100,000 but less
108	108	than $1 million on the project;
109	109	(B) 20 percent of in-state spending on the
110	110	project if the production company spent at least $1 million but less
111	111	than $3.5 million on the project; or
112	112	(C) 30 percent of in-state spending on the
113	113	project if the production company spent at least $3.5 million on the
114	114	project;
115	115	(3) notwithstanding Subdivision (1), for a
116	116	reality-based television program project the amount of the grant is
117	117	equal to:
118	118	(A) 10 percent of in-state spending on the
119	119	project if the production company spent at least $250,000 but less
120	120	than $1 million on the project; or
121	121	(B) 20 percent of in-state spending on the
122	122	project if the production company spent at least $1 million on the
123	123	project; and
124	124	(4) for a commercial, educational or instructional
125	125	video, or visual effects project the amount of the grant is equal
126	126	to:
127	127	(A) 10 percent of in-state spending on the
128	128	project if the production company spent at least $100,000 but less
129	129	than $1 million on the project; or
130	130	(B) 20 percent of in-state spending on the
131	131	project if the production company spent at least $1 million on the
132	132	project.
133	133	Sec. 485.045. ADDITIONAL GRANT FOR UNDERUTILIZED AND
134	134	ECONOMICALLY DISTRESSED AREAS. (a) In addition to a grant
135	135	calculated under Section 485.044(a), a production company that
136	136	constructs a production facility in an underutilized and
137	137	economically distressed area is eligible for an additional grant in
138	138	an amount equal to five percent of the total amount of the
139	139	production company's in-state construction spending for the
140	140	facility.
141	141	(b) In addition to a grant calculated under Section
142	142	485.044(b), a production company that produces a project in an
143	143	underutilized and economically distressed area is eligible for an
144	144	additional grant in an amount equal to five percent of the total
145	145	amount of the production company's in-state spending for the
146	146	project.
147	147	SECTION 2. This Act takes effect September 1, 2021.