87R5590 MTB-D
By: Price H.B. No. 2854
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a Texas film and entertainment industry
incentive program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 485, Government Code, is amended by
adding Subchapter C to read as follows:
SUBCHAPTER C. TEXAS FILM AND ENTERTAINMENT INDUSTRY 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 construction of a
production facility in this state.
(2) "In-state spending" means the amount of money
spent in this state by a production company during the production
and completion of a project.
(3) "Production company" has the meaning assigned by
Section 485.021.
(4) "Production facility" means a facility that
produces films, television programs including reality-based
television programs, digital interactive media, commercials, or
educational or instructional videos.
(5) "Project" means a film, television program
including a reality-based television program, digital interactive
media, commercial, or educational or instructional video
production. The term includes a visual effects project.
(6) "Underutilized and economically distressed area"
has the meaning assigned by Section 485.021.
Sec. 485.042. TEXAS FILM AND ENTERTAINMENT INDUSTRY
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:
(1) produce projects in this state; or
(2) 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 project
production or facility construction begins, of:
(A) an estimate of total in-state spending or
in-state construction spending, as applicable; and
(B) the estimated number of jobs for cast and
production crew during the production and completion of the
project, if applicable; 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. (a) To qualify for a
production facility or project production 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.
(b) To qualify for a production facility grant under this
subchapter, a production company must:
(1) have spent a minimum of $2.5 million in
constructing a production facility in this state;
(2) employ at least 15 full-time employees who are
residents of this state; and
(3) show that at least 80 percent of all services used
in the design and construction of the production facility are
provided by businesses that have their principal place of business
in this state.
(c) To qualify for a project production grant under this
subchapter, a production company must meet the qualifications for a
grant under Subchapter B as provided by Section 485.023.
Sec. 485.044. GRANT. (a) The amount of a production
facility grant under this subchapter is determined as follows:
(1) if the production company spent at least $2.5
million but less than $5 million on the facility, the amount of the
grant is equal to 10 percent of in-state construction spending on
the facility;
(2) if the production company spent at least $5
million but less than $10 million on the facility, the amount of the
grant is equal to 20 percent of in-state construction spending on
the facility; or
(3) if the production company spent at least $10
million on the facility, the amount of the grant is equal to 25
percent of in-state construction spending on the facility.
(b) The amount of a project production grant under this
subchapter is determined as follows:
(1) for a film or television program project the
amount of the grant is equal to:
(A) 10 percent of in-state spending on the
project if the production company spent at least $250,000 but less
than $1 million on the project;
(B) 20 percent of in-state spending on the
project if the production company spent at least $1 million but less
than $3.5 million on the project; or
(C) 30 percent of in-state spending on the
project if the production company spent at least $3.5 million on the
project;
(2) for a digital interactive media project the amount
of the grant is equal to:
(A) 10 percent of in-state spending on the
project if the production company spent at least $100,000 but less
than $1 million on the project;
(B) 20 percent of in-state spending on the
project if the production company spent at least $1 million but less
than $3.5 million on the project; or
(C) 30 percent of in-state spending on the
project if the production company spent at least $3.5 million on the
project;
(3) notwithstanding Subdivision (1), for a
reality-based television program project the amount of the grant is
equal to:
(A) 10 percent of in-state spending on the
project if the production company spent at least $250,000 but less
than $1 million on the project; or
(B) 20 percent of in-state spending on the
project if the production company spent at least $1 million on the
project; and
(4) for a commercial, educational or instructional
video, or visual effects project the amount of the grant is equal
to:
(A) 10 percent of in-state spending on the
project if the production company spent at least $100,000 but less
than $1 million on the project; or
(B) 20 percent of in-state spending on the
project if the production company spent at least $1 million on the
project.
Sec. 485.045. ADDITIONAL GRANT FOR UNDERUTILIZED AND
ECONOMICALLY DISTRESSED AREAS. (a) In addition to a grant
calculated under Section 485.044(a), 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 five percent of the total amount of the
production company's in-state construction spending for the
facility.
(b) In addition to a grant calculated under Section
485.044(b), a production company that produces a project in an
underutilized and economically distressed area is eligible for an
additional grant in an amount equal to five percent of the total
amount of the production company's in-state spending for the
project.
SECTION 2. This Act takes effect September 1, 2021.