Texas 2023 - 88th Regular

Texas House Bill HB4419 Compare Versions

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1	1	By: Goldman, Ashby, Hunter, Morrison, H.B. No. 4419
2	2	Collier, et al.
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the promotion of film and television production in this
8	8	state, including the eligibility of film or television productions
9	9	for funding under the major events reimbursement program, the
10	10	creation of a film events trust fund and a film production tax
11	11	rebate trust fund, the establishment of virtual film production
12	12	institutes, and the designation of media production development
13	13	zones.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Subtitle H, Title 3, Education Code, is amended
16	16	by adding Chapter 157 to read as follows:
17	17	CHAPTER 157. VIRTUAL FILM PRODUCTION INSTITUTES
18	18	Sec. 157.001. DEFINITION. In this chapter, "institute"
19	19	means a virtual film production institute established under this
20	20	chapter.
21	21	Sec. 157.002. ESTABLISHMENT; PURPOSE. Texas A&M University
22	22	at College Station and Texas State University may each establish a
23	23	virtual film production institute to provide educational
24	24	opportunities for students interested in studying virtual film
25	25	production and promote student engagement in the development of a
26	26	virtual film production industry in this state.
27	27	Sec. 157.003. FUNDING. In addition to any amount
28	28	appropriated by the legislature, each institute may apply for and
29	29	accept gifts, grants, and donations from the federal government or
30	30	any other source.
31	31	SECTION 2. Section 475.0001, Government Code, is amended by
32	32	adding Subdivisions (3-a) and (3-b) to read as follows:
33	33	(3-a) "Film or television production" means the
34	34	activities necessary to prepare, produce, perform, or present in
35	35	this state a television program, movie, virtual film, or any
36	36	combination of multimedia program.
37	37	(3-b) "Film or television production organization"
38	38	means an organization that produces a television program, movie,
39	39	virtual film, or multimedia program, regardless of the manner in
40	40	which the organization is formed or legally organized. The term
41	41	includes a production company, a studio, or a production team for a
42	42	television program, movie, virtual film, or multimedia program.
43	43	SECTION 3. Section 478.0001(3), Government Code, as amended
44	44	by Chapters 10 (H.B. 1472), 102 (S.B. 1265), 605 (S.B. 1155), and
45	45	915 (H.B. 3607), Acts of the 87th Legislature, Regular Session,
46	46	2021, is reenacted and amended to read as follows:
47	47	(3) "Event" means any of the following and includes
48	48	any activity related to or associated with the following:
49	49	(A) the Academy of Country Music Awards;
50	50	(B) the Amateur Athletic Union Junior Olympic
51	51	Games;
52	52	(C) a Big 12 Football Conference Championship
53	53	game;
54	54	(D) the Breeders' Cup World Championships;
55	55	(E) a game of the College Football Playoff or its
56	56	successor;
57	57	(F) the Confederation of North, Central America
58	58	and Caribbean Association Football (Concacaf) Gold Cup;
59	59	(G) [(F)] a CONVRG conference;
60	60	(H) [(G)] an Elite Rodeo Association World
61	61	Championship;
62	62	(I) a film or television production;
63	63	(J) [(H)] a Formula One automobile race;
64	64	(K) [(I)] the largest event held each year at a
65	65	sports entertainment venue in this state with a permanent seating
66	66	capacity, including grandstand and premium seating, of at least
67	67	125,000 on September 1, 2021;
68	68	(L) [(J)] the Major League Baseball All-Star
69	69	Game;
70	70	(M) [(K)] the Major League Soccer All-Star Game
71	71	or the Major League Soccer Cup;
72	72	(N) [(L)] a mixed martial arts championship;
73	73	(O) [(M)] the Moto Grand Prix of the United
74	74	States;
75	75	(P) [(N)] the National Association for Stock Car
76	76	Auto Racing (NASCAR):
77	77	(i) All-Star Race;
78	78	(ii) season-ending Championship Race; or
79	79	(iii) Texas Grand Prix race;
80	80	(Q) [(O)] the National Basketball Association
81	81	All-Star Game;
82	82	(R) [(P)] a National Collegiate Athletic
83	83	Association Final Four tournament game;
84	84	(S) [(Q)] the National Collegiate Athletic
85	85	Association men's or women's lacrosse championships;
86	86	(T) [(R)] a national collegiate championship of
87	87	an amateur sport sanctioned by the national governing body of the
88	88	sport that is recognized by the United States Olympic Committee;
89	89	(U) [(S)] the National Cutting Horse Association
90	90	Triple Crown;
91	91	(V) [(T)] the National Hockey League All-Star
92	92	Game;
93	93	(W) the National Hot Rod Association Fall
94	94	Nationals at the Texas Motorplex;
95	95	(X) [(U)] a national political convention of the
96	96	Republican National Committee or the Democratic National
97	97	Committee;
98	98	(Y) [(V)] a championship event in the National
99	99	Reined Cow Horse Association (NRCHA) Championship Series;
100	100	(Z) [(W)] an Olympic activity, including a
101	101	Junior or Senior activity, training program, or feeder program
102	102	sanctioned by the United States Olympic Committee's Community
103	103	Olympic Development Program;
104	104	(AA) [(X)] a presidential general election
105	105	debate;
106	106	(BB) [(Y)] the Professional Rodeo Cowboys
107	107	Association National Finals Rodeo;
108	108	(CC) [(Z)] a Super Bowl;
109	109	(DD) [(AA)] the United States Open Championship;
110	110	(EE) [(BB)] a World Cup soccer game or the World
111	111	Cup soccer tournament;
112	112	(FF) [(CC)] the World Games;
113	113	(GG) [(DD)] a World Wrestling Entertainment
114	114	WrestleMania event; or
115	115	(HH) [(EE)] the X Games.
116	116	SECTION 4. Section 478.0001(7), Government Code, as amended
117	117	by Chapters 10 (H.B. 1472), 102 (S.B. 1265), and 915 (H.B. 3607),
118	118	Acts of the 87th Legislature, Regular Session, 2021, is reenacted
119	119	and amended to read as follows:
120	120	(7) "Site selection organization" means:
121	121	(A) the Academy of Country Music;
122	122	(B) the Amateur Athletic Union;
123	123	(C) the Big 12 Conference;
124	124	(D) the College Football Playoff Administration,
125	125	LLC, or its successor;
126	126	(E) the Commission on Presidential Debates;
127	127	(F) the Confederation of North, Central America
128	128	and Caribbean Association Football (Concacaf);
129	129	(G) [(F)] the Democratic National Committee;
130	130	(H) [(G)] Dorna Sports;
131	131	(I) [(H)] the Elite Rodeo Association;
132	132	(J) [(I)] Encore Live;
133	133	(K) [(J)] ESPN or an affiliate;
134	134	(L) [(K)] the Federation Internationale de
135	135	Football Association (FIFA);
136	136	(M) a film or television production
137	137	organization;
138	138	(N) [(L)] the International World Games
139	139	Association;
140	140	(O) [(M)] Major League Baseball;
141	141	(P) [(N)] Major League Soccer;
142	142	(Q) [(O)] the National Association for Stock Car
143	143	Auto Racing (NASCAR);
144	144	(R) [(P)] the National Basketball Association;
145	145	(S) [(Q)] the National Collegiate Athletic
146	146	Association;
147	147	(T) [(R)] the National Cutting Horse
148	148	Association;
149	149	(U) [(S)] the National Football League;
150	150	(V) [(T)] the National Hockey League;
151	151	(W) the National Hot Rod Association;
152	152	(X) [(U)] the National Reined Cow Horse
153	153	Association (NRCHA);
154	154	(Y) [(V)] the Professional Rodeo Cowboys
155	155	Association;
156	156	(Z) [(W)] the Republican National Committee;
157	157	(AA) [(X)] the Ultimate Fighting Championship;
158	158	(BB) [(Y)] the United States Golf Association;
159	159	(CC) [(Z)] the United States Olympic Committee;
160	160	(DD) [(AA)] World Wrestling Entertainment; or
161	161	(EE) [(BB)] the national governing body of a
162	162	sport that is recognized by:
163	163	(i) the Federation Internationale de
164	164	l'Automobile;
165	165	(ii) Formula One Management Limited;
166	166	(iii) the National Thoroughbred Racing
167	167	Association; or
168	168	(iv) the United States Olympic Committee.
169	169	SECTION 5. Section 478.0051, Government Code, is amended by
170	170	adding Subsection (c) to read as follows:
171	171	(c) Notwithstanding Subsection (b), an event described by
172	172	Section 478.0001(3)(I) may receive funding through the program if a
173	173	site selection organization selects:
174	174	(1) a site in this state as the sole site for the
175	175	event;
176	176	(2) two or more predetermined locations as the sites
177	177	in this state for the event; or
178	178	(3) a site in this state as the sole site for the event
179	179	in a region composed of this state and one or more adjoining states.
180	180	SECTION 6. Subtitle E-1, Title 4, Government Code, is
181	181	amended by adding Chapter 480A to read as follows:
182	182	CHAPTER 480A. FILM EVENTS TRUST FUND
183	183	SUBCHAPTER A. GENERAL PROVISIONS
184	184	Sec. 480A.0001. PURPOSE. The purpose of this chapter is to
185	185	establish a film events trust fund to maximize the preparation,
186	186	production, performance, or presentation of television programs,
187	187	movies, virtual films, and multimedia productions in this state and
188	188	for successful competition with other states for those programs,
189	189	movies, films, and productions.
190	190	Sec. 480A.0002. DEFINITIONS. In this chapter:
191	191	(1) "Endorsing county" means a county that contains a
192	192	site selected by a site selection organization for a film event.
193	193	(2) "Endorsing entity" means a local organizing
194	194	committee, endorsing county, or endorsing municipality.
195	195	(3) "Endorsing municipality" means a municipality
196	196	that contains a site selected by a site selection organization for a
197	197	film event.
198	198	(4) "Event support contract" means a joinder
199	199	undertaking, a joinder agreement, or a similar contract executed by
200	200	a site selection organization and a local organizing committee, an
201	201	endorsing municipality, or an endorsing county for a film event.
202	202	(5) "Film event" includes the activities necessary to
203	203	prepare, produce, perform, or present in this state a television
204	204	program, movie, virtual film, or any combination of multimedia
205	205	programs or a series of television programs, movies, virtual films,
206	206	or multimedia programs, for which an endorsing entity seeks
207	207	approval from a site selection organization to conduct those
208	208	activities at a site in this state. The term includes any activity
209	209	related to or associated with the preparation, production,
210	210	performance, or presentation.
211	211	(6) "Local organizing committee" means a nonprofit
212	212	corporation or the corporation's successor in interest that is
213	213	authorized by an endorsing municipality or endorsing county to:
214	214	(A) pursue an application and bid on the
215	215	applicant's behalf to a site selection organization for selection
216	216	as the site of a film event; or
217	217	(B) execute an agreement with a site selection
218	218	organization regarding a bid to host a film event.
219	219	(7) "Office" means the Texas Economic Development and
220	220	Tourism Office.
221	221	(8) "Site" includes one or more sites in this state at
222	222	which a film event is held.
223	223	(9) "Site selection organization" means a film or
224	224	television organization that conducts or considers conducting in
225	225	this state a film event eligible under Section 480A.0051.
226	226	Sec. 480A.0003. RULES. (a) The office may adopt rules
227	227	necessary to implement this chapter.
228	228	(b) The rules adopted under this section must be prescribed
229	229	and applied to promote the purpose of this chapter, as provided by
230	230	Section 480A.0001.
231	231	(c) The office may adopt rules necessary to accommodate a
232	232	film event that occurs over multiple days, weeks, or years, and in
233	233	multiple locations across this state. Notwithstanding any other
234	234	law, to the extent of a conflict between a rule adopted by the
235	235	office to accomplish the purposes of this subsection and another
236	236	provision of this chapter, the rule controls.
237	237	Sec. 480A.0004. CONSTRUCTION OF CHAPTER. (a) This chapter
238	238	may not be construed as creating or requiring a state guarantee of
239	239	an obligation imposed on an endorsing municipality, an endorsing
240	240	county, or this state under an event support contract or another
241	241	agreement relating to hosting a film event in this state.
242	242	(b) This chapter shall be construed and applied to
243	243	effectuate the purpose of this chapter.
244	244	SUBCHAPTER B. ELIGIBILITY
245	245	Sec. 480A.0051. FILM EVENTS ELIGIBLE FOR FUNDING. (a) A
246	246	film event is eligible for funding under this chapter only if:
247	247	(1) a site selection organization, after conducting a
248	248	highly competitive selection process of one or more sites not in
249	249	this state, selects a site in this state for the film event to be
250	250	held:
251	251	(A) one time; or
252	252	(B) if the film event is scheduled under an event
253	253	contract or event support contract to be held each year for a period
254	254	of years, one time in each year; and
255	255	(2) a site selection organization selects:
256	256	(A) a site in this state as the sole site for the
257	257	film event;
258	258	(B) two or more locations as the sites in this
259	259	state for the film event; or
260	260	(C) a site in this state as the sole site for the
261	261	film event in a region composed of this state and one or more
262	262	adjoining states.
263	263	(b) During the period in which a film event eligible under
264	264	this section is held in this state, a site selection organization
265	265	may select additional sites for the film event.
266	266	Sec. 480A.0052. LIMITATIONS ON CERTAIN FUNDING REQUESTS.
267	267	(a) This section applies only to a film event for which the office
268	268	determines under Section 480A.0102 that the total incremental
269	269	increase in tax receipts is less than $5 million.
270	270	(b) An endorsing municipality or endorsing county may
271	271	during any 12-month period submit requests for funding under this
272	272	chapter for not more than 30 film events to which this section
273	273	applies.
274	274	SUBCHAPTER C. STATE ACTIONS RELATING TO FILM EVENTS
275	275	Sec. 480A.0101. PREREQUISITES FOR OFFICE ACTION. The
276	276	office may not undertake any duty imposed by this chapter unless:
277	277	(1) an endorsing entity submits a request for funding
278	278	under this chapter; and
279	279	(2) the request is accompanied by documentation from a
280	280	site selection organization selecting the site for the film event.
281	281	Sec. 480A.0102. DETERMINATION OF INCREMENTAL INCREASE IN
282	282	CERTAIN TAX RECEIPTS. (a) After a site selection organization
283	283	selects a site for a film event in this state in accordance with an
284	284	application by an endorsing entity, the office shall determine the
285	285	incremental increases in the following tax receipts that the office
286	286	determines are directly attributable to the film event for the
287	287	30-day period that ends at the end of the day after the date on which
288	288	the film event activities in this state are completed or, if the
289	289	film event will be presented on more than one day, after the last
290	290	date on which the film event will be presented:
291	291	(1) the receipts to this state from taxes imposed
292	292	under Chapters 151, 152, 156, and 183, Tax Code, and under Title 5,
293	293	Alcoholic Beverage Code, in the market areas designated under
294	294	Section 480A.0104;
295	295	(2) the receipts collected by this state for each
296	296	endorsing municipality in the market area from the sales and use tax
297	297	imposed by each endorsing municipality under Section 321.101(a),
298	298	Tax Code, and the mixed beverage tax revenue to be received by each
299	299	endorsing municipality under Section 183.051(b), Tax Code;
300	300	(3) the receipts collected by this state for each
301	301	endorsing county in the market area from the sales and use tax
302	302	imposed by each endorsing county under Section 323.101(a), Tax
303	303	Code, and the mixed beverage tax revenue to be received by each
304	304	endorsing county under Section 183.051(b), Tax Code;
305	305	(4) the receipts collected by each endorsing
306	306	municipality in the market area from the hotel occupancy tax
307	307	imposed under Chapter 351, Tax Code; and
308	308	(5) the receipts collected by each endorsing county in
309	309	the market area from the hotel occupancy tax imposed under Chapter
310	310	352, Tax Code.
311	311	(b) The office shall make the determination required by
312	312	Subsection (a) in accordance with procedures the office develops
313	313	and shall base that determination on information submitted by an
314	314	endorsing entity.
315	315	Sec. 480A.0103. TIME FOR DETERMINATION. The office shall
316	316	determine the incremental increase in tax receipts under Section
317	317	480A.0102 not later than the earlier of:
318	318	(1) the 30th day after the date the office receives the
319	319	information for a film event submitted by an endorsing entity on
320	320	which the office bases the determination as provided by Section
321	321	480A.0102(b); or
322	322	(2) one month before the date scheduled for
323	323	commencement of preparation, production, performance, or
324	324	presentation of the film event.
325	325	Sec. 480A.0104. DESIGNATION OF MARKET AREA. (a) For
326	326	purposes of Section 480A.0102(a)(1), the office shall designate as
327	327	a market area for a film event each area in which the office
328	328	determines there is a reasonable likelihood of measurable economic
329	329	impact directly attributable to the preparation, production,
330	330	performance, or presentation of the film event. The office shall
331	331	include areas likely to provide venues, accommodations, and
332	332	services in connection with the film event based on the proposal the
333	333	endorsing entity provides to the office.
334	334	(b) The office shall determine the geographic boundaries of
335	335	each market area.
336	336	(c) An endorsing municipality or endorsing county selected
337	337	as the site for the film event must be included in a market area for
338	338	the film event.
339	339	(d) The office may amend the market area for a film event
340	340	eligible under this section during the period in which the film
341	341	event is held.
342	342	Sec. 480A.0105. ESTIMATE OF TAX REVENUE CREDITED TO FUND.
343	343	(a) Not later than one month before the first date scheduled for
344	344	commencement of preparation, production, performance, or
345	345	presentation of a film event, the office shall provide an estimate
346	346	of the total amount of tax revenue that would be transferred or
347	347	deposited to the film events trust fund under this chapter in
348	348	connection with that film event if the film event were prepared,
349	349	produced, performed, or presented in this state at a site selected
350	350	in accordance with an application by an endorsing entity. The
351	351	office may revise the office's estimate under this subsection
352	352	during the period in which the film event is held.
353	353	(b) The office shall provide the estimate on request to an
354	354	endorsing entity.
355	355	(c) An endorsing entity may submit the office's estimate to
356	356	a site selection organization.
357	357	Sec. 480A.0106. MODEL FILM EVENT SUPPORT CONTRACT AND MODEL
358	358	APPLICATION FORM. (a) The office may adopt a model film event
359	359	support contract and a model application form. If the office adopts
360	360	a contract or form under this subsection, the office shall make the
361	361	documents available on the office's Internet website.
362	362	(b) The office's adoption of a model film event support
363	363	contract and model application form under this section does not
364	364	require the use of those documents for purposes of this chapter.
365	365	SUBCHAPTER D. FUND ESTABLISHMENT AND CONTRIBUTIONS
366	366	Sec. 480A.0151. FILM EVENTS TRUST FUND. The film events
367	367	trust fund is established outside the state treasury and is held in
368	368	trust by the comptroller for administration of this chapter.
369	369	Sec. 480A.0152. DEPOSIT OF MUNICIPAL AND COUNTY TAX
370	370	REVENUE. (a) Each endorsing municipality or endorsing county
371	371	shall remit to the comptroller and the comptroller shall deposit
372	372	into a trust fund created by the comptroller, at the direction of
373	373	the office, and designated as the film events trust fund the amount
374	374	of the municipality's or county's hotel occupancy tax revenue
375	375	determined under Section 480A.0102(a)(4) or (5), less any amount of
376	376	the revenue that the municipality or county determines is necessary
377	377	to meet the obligations of the municipality or county.
378	378	(b) The comptroller, at the direction of the office, shall
379	379	retain the amount of sales and use tax revenue and mixed beverage
380	380	tax revenue determined under Section 480A.0102(a)(2) or (3) from
381	381	the amounts otherwise required to be sent to the municipality under
382	382	Sections 321.502 and 183.051(b), Tax Code, or to the county under
383	383	Sections 323.502 and 183.051(b), Tax Code, less any amount of the
384	384	revenue that the municipality or county determines is necessary to
385	385	meet the obligations of the municipality or county, and shall
386	386	deposit the retained tax revenue to the film events trust fund.
387	387	(c) The comptroller shall begin retaining and depositing
388	388	the municipal and county tax revenue:
389	389	(1) with the first distribution of that tax revenue
390	390	that occurs after the first day of the period described by Section
391	391	480A.0102(a); or
392	392	(2) at a time the office otherwise determines to be
393	393	practicable.
394	394	(d) The comptroller shall discontinue retaining the
395	395	municipal and county tax revenue when the amount of the applicable
396	396	tax revenue determined under Section 480A.0102(a)(2) or (3) has
397	397	been retained.
398	398	Sec. 480A.0153. OTHER LOCAL MONEY. (a) In lieu of the
399	399	municipal and county tax revenues remitted or retained under
400	400	Section 480A.0152, an endorsing municipality or endorsing county
401	401	may remit to the office for deposit to the film events trust fund
402	402	other local money in an amount equal to the total amount of
403	403	municipal and county tax revenue determined under Sections
404	404	480A.0102(a)(2)-(5).
405	405	(b) An endorsing municipality or endorsing county must
406	406	remit the other local money not later than the 90th day after the
407	407	last day of the period scheduled for the film event.
408	408	(c) For purposes of Section 480A.0155, the amount deposited
409	409	under this section is considered remitted municipal and county tax
410	410	revenue.
411	411	Sec. 480A.0154. SURCHARGES AND USER FEES. An endorsing
412	412	municipality or endorsing county may collect and remit to the
413	413	office any applicable surcharges and user fees attributable to a
414	414	film event for deposit to the film events trust fund.
415	415	Sec. 480A.0155. STATE TAX REVENUE. (a) The comptroller, at
416	416	the direction of the office, shall transfer to the film events trust
417	417	fund a portion of the state tax revenue in an amount equal to 6.25
418	418	multiplied by the amount of the municipal and county tax revenue
419	419	retained or remitted under this chapter, including:
420	420	(1) local sales and use tax revenue;
421	421	(2) mixed beverage tax revenue;
422	422	(3) hotel occupancy tax revenue; and
423	423	(4) any applicable surcharge and user fee revenue.
424	424	(b) The amount transferred under Subsection (a) may not
425	425	exceed the incremental increase in tax receipts determined under
426	426	Section 480A.0102(a)(1).
427	427	SUBCHAPTER E. DISBURSEMENTS FROM FILM EVENTS TRUST FUND
428	428	Sec. 480A.0201. DISBURSEMENT WITHOUT APPROPRIATION. Money
429	429	in the film events trust fund may be disbursed by the office without
430	430	appropriation only as provided by this chapter.
431	431	Sec. 480A.0202. DISBURSEMENT FROM FILM EVENTS TRUST FUND.
432	432	(a) After approval of each contributing endorsing municipality and
433	433	endorsing county, if any, the office may make a disbursement from
434	434	the film events trust fund for a purpose for which an endorsing
435	435	entity or this state is obligated under an event support contract,
436	436	including any obligation to pay costs incurred in preparing,
437	437	producing, performing, or presenting the film event.
438	438	(b) In considering whether to make a disbursement from the
439	439	film events trust fund, the office may not consider a contingency
440	440	clause in an event support contract as relieving an endorsing
441	441	entity's obligation to pay a cost under the contract.
442	442	(c) If the office makes a disbursement from the film events
443	443	trust fund, the office shall satisfy the obligation proportionately
444	444	from the local and state revenue in the fund.
445	445	Sec. 480A.0203. REDUCTION OF DISBURSEMENT AMOUNT. (a)
446	446	After the conclusion of the film event, the office shall compare
447	447	information on the number of persons who participated in the film
448	448	event as provided under Section 480A.0251 with any estimated number
449	449	of persons participating in the film event used to determine the
450	450	incremental increase in tax receipts under Section 480A.0102. If
451	451	the actual number of persons who participated in the film event is
452	452	significantly lower than the estimated number of persons
453	453	participating in the film event, the office may reduce the amount of
454	454	a disbursement from the film events trust fund for an endorsing
455	455	entity:
456	456	(1) in proportion to the discrepancy between the
457	457	actual and estimated number of persons participating in the film
458	458	event; and
459	459	(2) in proportion to the amount the entity contributed
460	460	to the fund.
461	461	(b) The office by rule shall:
462	462	(1) define "significantly lower" for purposes of this
463	463	section; and
464	464	(2) provide the manner in which the office may
465	465	proportionately reduce a disbursement.
466	466	(c) This section does not affect the remittance under
467	467	Section 480A.0207 of any money remaining in the film events trust
468	468	fund.
469	469	Sec. 480A.0204. ALLOWABLE EXPENSES. (a) Money in the film
470	470	events trust fund may be used to:
471	471	(1) pay the principal of and interest on notes issued
472	472	under Section 480A.0252; and
473	473	(2) fulfill obligations of an endorsing municipality,
474	474	an endorsing county, or this state to a site selection organization
475	475	under an event support contract.
476	476	(b) Subject to Sections 480A.0202 and 480A.0205, the
477	477	obligations described by Subsection (a)(2) may include the payment
478	478	of:
479	479	(1) the costs relating to the preparation of the film
480	480	event; and
481	481	(2) the costs of producing, performing, or presenting
482	482	the film event, including costs of an improvement or renovation to
483	483	an existing facility and costs of acquisition or construction of a
484	484	new facility or other facility that could be used to prepare,
485	485	produce, perform, or present film events.
486	486	Sec. 480A.0205. LIMITATION ON CERTAIN DISBURSEMENTS. (a)
487	487	A disbursement from the film events trust fund is limited to 25
488	488	percent of the cost of a structural improvement if an obligation is
489	489	incurred under an event support contract to make the improvement or
490	490	add the fixture to a site for a film event.
491	491	(b) The remainder of an obligation described by Subsection
492	492	(a) is not eligible for a disbursement from the film events trust
493	493	fund, unless the obligation is for an improvement or fixture for a:
494	494	(1) publicly owned facility; or
495	495	(2) facility that could be used for future film
496	496	events.
497	497	Sec. 480A.0206. PROHIBITED DISBURSEMENTS. (a) Subject to
498	498	Subsection (b), the office may not make a disbursement from the film
499	499	events trust fund that the office determines would be used to:
500	500	(1) construct an arena, stadium, or convention center;
501	501	or
502	502	(2) conduct usual and customary maintenance of a
503	503	facility.
504	504	(b) Subsection (a) does not prohibit a disbursement from the
505	505	film events trust fund for the construction of temporary structures
506	506	within an arena, stadium, or convention center that are necessary
507	507	for the preparation, production, performance, and presentation of a
508	508	film event or temporary maintenance of a facility that is necessary
509	509	for the preparation, production, performance, and presentation of a
510	510	film event.
511	511	Sec. 480A.0207. REMITTANCE OF REMAINING FUND MONEY. On
512	512	payment of all municipal, county, or state obligations under an
513	513	event support contract related to the location of a film event in
514	514	this state, the office shall remit to each endorsing entity, in
515	515	proportion to the amount contributed by the entity, any money
516	516	remaining in the film events trust fund.
517	517	SUBCHAPTER F. LOCAL POWERS AND DUTIES RELATING TO FILM EVENTS
518	518	Sec. 480A.0251. REQUIRED INFORMATION. (a) An endorsing
519	519	entity shall provide information required by the office to fulfill
520	520	the office's duties under this chapter, including:
521	521	(1) annual audited statements of any financial records
522	522	required by a site selection organization; and
523	523	(2) data obtained by the endorsing entity relating to:
524	524	(A) the number of persons hired, contracted,
525	525	volunteering, or otherwise directly participating in the
526	526	preparation, production, performance, or presentation of the film
527	527	event, including an estimate of the number of persons expected to
528	528	participate in the film event who are not residents of this state;
529	529	(B) the economic impact of the film event; and
530	530	(C) any other information the office considers
531	531	necessary.
532	532	(b) An endorsing entity must provide any annual audited
533	533	financial statement required by the office not later than the end of
534	534	the fourth month after the last day of the period covered by the
535	535	financial statement.
536	536	Sec. 480A.0252. ISSUANCE OF NOTES. (a) To meet its
537	537	obligations under an event support contract to improve, construct,
538	538	renovate, or acquire facilities or to acquire equipment, an
539	539	endorsing municipality by ordinance or an endorsing county by order
540	540	may authorize the issuance of notes.
541	541	(b) An endorsing municipality or endorsing county may
542	542	provide that the notes be paid from and secured by:
543	543	(1) amounts on deposit or amounts to be transferred or
544	544	deposited to the film events trust fund; or
545	545	(2) surcharges from user fees charged in connection
546	546	with the film event, including parking or ticket fees, if the film
547	547	event is premiered, performed, or otherwise presented exclusively
548	548	at a venue in this state for which parking or ticket fees may be
549	549	collected.
550	550	(c) A note issued must mature not later than the seventh
551	551	anniversary of the date of issuance.
552	552	Sec. 480A.0253. PLEDGE OF SURCHARGES TO GUARANTEE
553	553	OBLIGATIONS. An endorsing municipality or endorsing county may
554	554	guarantee its obligations under an event support contract and this
555	555	chapter by pledging, in addition to the tax revenue deposited under
556	556	Section 480A.0152, surcharges from user fees charged in connection
557	557	with the film event, including parking or ticket fees, if the film
558	558	event is premiered, performed, or otherwise presented exclusively
559	559	at a venue in this state for which parking or ticket fees may be
560	560	collected.
561	561	SECTION 7. Subtitle F, Title 4, Government Code, is amended
562	562	by adding Chapter 482 to read as follows:
563	563	CHAPTER 482. FILM OR TELEVISION PRODUCTION TAX REBATE TRUST FUND
564	564	SUBCHAPTER A. GENERAL PROVISIONS
565	565	Sec. 482.0001. DEFINITIONS. In this chapter:
566	566	(1) "Competitive selection process" means the
567	567	competitive selection process established by rule of the office for
568	568	a film or television production organization to use in considering
569	569	sites for film or television productions.
570	570	(2) "Film or television production" means a television
571	571	program, movie, virtual film, or any combination of multimedia
572	572	programming produced, filmed, performed, or presented wholly or
573	573	partly in this state.
574	574	(3) "Film or television production organization" has
575	575	the meaning assigned by Section 475.0001.
576	576	(4) "Office" means the music, film, television, and
577	577	multimedia office within the office of the governor.
578	578	(5) "Trust fund" means the film production tax rebate
579	579	trust fund established under this chapter.
580	580	Sec. 482.0002. RULES. (a) The office shall adopt rules
581	581	necessary to implement this chapter.
582	582	(b) Any rules adopted under this section must be designed
583	583	and applied to encourage and incentivize organizations to select a
584	584	site in this state to conduct film or television productions.
585	585	(c) The office has broad discretion in implementing this
586	586	chapter and in adopting rules necessary for that implementation to
587	587	allow for the creation of an outstanding and competitive rebate
588	588	program to attract film or television productions to this state.
589	589	(d) The office may adopt rules necessary to accommodate a
590	590	film or television production that occurs over multiple days,
591	591	weeks, or years, and in multiple locations across this state.
592	592	Notwithstanding any other law, to the extent of a conflict between a
593	593	rule adopted by the office to accomplish the purposes of this
594	594	subsection and another provision of this chapter, the rule
595	595	controls.
596	596	SUBCHAPTER B. ELIGIBILITY
597	597	Sec. 482.0051. FILM OR TELEVISION PRODUCTIONS ELIGIBLE FOR
598	598	FUNDING. A film or television production is eligible for funding
599	599	under this chapter only if a film or television production
600	600	organization, after conducting a highly competitive selection
601	601	process of one or more sites not in this state, selects one or more
602	602	sites in this state for all or part of the production.
603	603	SUBCHAPTER C. STATE ACTIONS RELATING TO PRODUCTIONS
604	604	Sec. 482.0101. DETERMINATION OF INCREMENTAL INCREASE IN
605	605	CERTAIN TAX RECEIPTS. After a film or television production
606	606	organization selects a site or sites for a film or television
607	607	production, the organization shall file an application with the
608	608	office and supply information the office considers necessary to
609	609	determine the incremental increases in the receipts to this state
610	610	from taxes imposed under Chapters 151, 152, 156, and 183, Tax Code,
611	611	and under Title 5, Alcoholic Beverage Code, in the market area
612	612	designated under Section 482.0103 that the office determines are
613	613	directly attributable to the preparation, production, performance,
614	614	and presentation of the film or television production.
615	615	Sec. 482.0102. TIME FOR DETERMINATION. The office shall
616	616	calculate the incremental increase in tax receipts under Section
617	617	482.0101 not later than the 60th day after the date the film or
618	618	television production organization or its designated agent or
619	619	representative submits the necessary documentation to the office to
620	620	determine the rebate amount.
621	621	Sec. 482.0103. DESIGNATION OF MARKET AREA. For purposes of
622	622	Section 482.0101, the office shall designate for the film or
623	623	television production a market area where there is a reasonable
624	624	likelihood of measurable economic impact directly attributable to
625	625	the preparation, production, performance, or presentation of the
626	626	production. The office shall include market areas likely to
627	627	provide venues, accommodations, and services in connection with the
628	628	production based on the application provided to the office.
629	629	Sec. 482.0104. MODEL FILM OR TELEVISION PRODUCTION TAX
630	630	REBATE APPLICATION. (a) The office may adopt a model film or
631	631	television production tax rebate application form. If the office
632	632	adopts a model form under this section, the office shall make the
633	633	form available on the office's Internet website.
634	634	(b) The office's adoption of a model film or television
635	635	production tax rebate application form under this section does not
636	636	require the use of that form for purposes of this chapter.
637	637	SUBCHAPTER D. TRUST FUND ESTABLISHMENT AND CONTRIBUTIONS
638	638	Sec. 482.0151. FILM PRODUCTION TAX REBATE TRUST FUND. The
639	639	film production tax rebate trust fund is established outside the
640	640	state treasury and is held in trust by the comptroller for
641	641	administration of this chapter.
642	642	Sec. 482.0152. STATE TAX REVENUE. Not later than the 30th
643	643	day after notice from the office, the comptroller, at the direction
644	644	of the office, shall transfer to the trust fund a portion of the
645	645	state tax revenue in an amount equal to 25 percent of the amount of
646	646	incremental increases in tax receipts determined under Section
647	647	482.0101.
648	648	Sec. 482.0153. INTEREST. Any interest accumulated over
649	649	time shall remain in the trust fund for use by the office in paying
650	650	the costs of administering the trust fund. The office may disburse
651	651	all or part of the retained interest in the trust fund to the office
652	652	for that purpose.
653	653	SUBCHAPTER E. DISBURSEMENTS FROM TRUST FUND
654	654	Sec. 482.0201. DISBURSEMENT WITHOUT APPROPRIATION. Money
655	655	in the trust fund may be disbursed by the office without
656	656	appropriation only as provided by this chapter.
657	657	Sec. 482.0202. REBATE DISBURSEMENT FROM TRUST FUND. In
658	658	accordance with procedures adopted by the office, the office shall
659	659	make a disbursement from the trust fund to a film or television
660	660	production organization in an amount equal to 25 percent of the
661	661	incremental increase in the tax receipts determined under Section
662	662	482.0101 for the applicable film or television production.
663	663	SUBCHAPTER F. MULTIPLE FUNDING REQUESTS
664	664	Sec. 482.0251. APPLICABILITY OF LAW TO MULTIPLE FUNDING
665	665	REQUESTS. (a) The provisions within this chapter are cumulative of
666	666	all other existing incentive programs or any program created in the
667	667	future. Subject to Subsection (b), a person may receive a
668	668	reimbursement, disbursement, or rebate under one or more incentive
669	669	programs.
670	670	(b) Notwithstanding Subsection (a), a person may not
671	671	receive a reimbursement, disbursement, or rebate under Chapters
672	672	478, 480A, or this chapter that exceeds the highest incremental
673	673	increase in receipts to this state from taxes imposed under
674	674	Chapters 151, 152, 156, and 183, Tax Code, and under Title 5,
675	675	Alcoholic Beverage Code, as determined by the office, in the market
676	676	area designated by the office.
677	677	(c) A person may receive one or more reimbursements,
678	678	disbursements, and rebates under Chapters 478 and 480A and this
679	679	chapter in addition to a grant awarded under Chapter 485.
680	680	SECTION 8. Section 485A.002, Government Code, is amended by
681	681	amending Subdivisions (1) and (4) and adding Subdivision (1-a) to
682	682	read as follows:
683	683	(1) "Institution of higher education" has the meaning
684	684	assigned by Section 61.003, Education Code.
685	685	(1-a) "Media production facility" means a structure,
686	686	building, or room used for the specific purpose of creating a moving
687	687	image project. The term includes but is not limited to:
688	688	(A) a soundstage and scoring stage;
689	689	(B) a production office;
690	690	(C) an editing facility, an animation production
691	691	facility, and a video game production facility;
692	692	(D) a storage and construction space; [and]
693	693	(E) a sound recording studio and motion capture
694	694	studio; and
695	695	(F) a virtual production facility.
696	696	(4) "Nominating body" means the governing body of a
697	697	municipality, [or] county, or institution of higher education, or a
698	698	combination of the governing bodies of municipalities, [or]
699	699	counties, or institutions of higher education that:
700	700	(A) recognizes a qualified area as a media
701	701	production development zone; and
702	702	(B) nominates and applies for designation of a
703	703	location in a media production development zone as a qualified
704	704	media production location.
705	705	SECTION 9. Section 485A.101, Government Code, is amended to
706	706	read as follows:
707	707	Sec. 485A.101. CRITERIA FOR MEDIA PRODUCTION DEVELOPMENT
708	708	ZONE RECOGNITION. To be approved as a media production development
709	709	zone, an area:
710	710	(1) must be in a metropolitan statistical area, the
711	711	principal municipality of which[:
712	712	[(A) has a population of more than 250,000; and
713	713	[(B)] has the adequate workforce,
714	714	infrastructure, facilities, or resources to support the production
715	715	and completion of moving image projects;
716	716	(2) must be recognized as a media production
717	717	development zone by:
718	718	(A) ordinance or order, as appropriate, of the
719	719	governing body of a municipality or the commissioners court of a
720	720	county; or
721	721	(B) resolution or order of an institution of
722	722	higher education; and
723	723	(3) will contain a qualified media production location
724	724	within its geographical boundaries that meets the criteria under
725	725	Section 485A.102.
726	726	SECTION 10. Section 485A.104(a), Government Code, is
727	727	amended to read as follows:
728	728	(a) The governing body of a municipality, [or] county, or
729	729	institution of higher education individually or in combination with
730	730	other municipalities, [or] counties, or institutions of higher
731	731	education, by ordinance, resolution, or order, as appropriate, may
732	732	nominate as a qualified media production location a location within
733	733	its jurisdiction that meets the criteria under Section 485A.102.
734	734	SECTION 11. Section 485A.105, Government Code, is amended
735	735	to read as follows:
736	736	Sec. 485A.105. NOMINATING ORDINANCE, RESOLUTION, OR ORDER.
737	737	An ordinance, resolution, or order nominating a location as a
738	738	qualified media production location must:
739	739	(1) describe precisely both the media production
740	740	development zone in which the location is to be included and the
741	741	proposed location by a legal description or reference to municipal
742	742	or county boundaries;
743	743	(2) state a finding that the location meets the
744	744	requirements of this chapter and that the media production
745	745	development zone in which the location is to be included has been
746	746	recognized as a zone by ordinance, resolution, or order, as
747	747	appropriate, by the nominating body;
748	748	(3) summarize briefly the local financial incentives,
749	749	including tax incentives, that, at the election of the nominating
750	750	body, will apply to a qualified person;
751	751	(4) contain a brief description of the project or
752	752	activity to be conducted by a qualified person at the location;
753	753	(5) nominate the location as a qualified media
754	754	production location; and
755	755	(6) contain an economic impact analysis from an
756	756	economic expert.
757	757	SECTION 12. Section 485A.106(b), Government Code, is
758	758	amended to read as follows:
759	759	(b) The application must include:
760	760	(1) a certified copy of the ordinance, resolution, or
761	761	order, as appropriate, nominating the location as a media
762	762	production location;
763	763	(2) a certified copy of the ordinance, resolution, or
764	764	order, as appropriate, recognizing the zone in which the location
765	765	is to be included as a media production development zone;
766	766	(3) appropriate supporting documents demonstrating
767	767	that the location qualifies for designation as a qualified media
768	768	production location;
769	769	(4) an estimate of the economic impact of the
770	770	designation of the location as a qualified media production
771	771	location on the revenues of the governmental entity or entities
772	772	nominating the location as a qualified media production location,
773	773	considering the financial incentives and benefits contemplated;
774	774	(5) an economic impact analysis of the proposed
775	775	project or activities to be conducted at the proposed qualified
776	776	media production location, which must include:
777	777	(A) an estimate of the amount of revenue to be
778	778	generated to the state by the project or activity;
779	779	(B) an estimate of any secondary economic
780	780	benefits to be generated by the project or activity;
781	781	(C) an estimate of the amount of state taxes to be
782	782	exempted, as provided by Section 151.3415, Tax Code; and
783	783	(D) any other information required by the
784	784	comptroller for purposes of making the certification required by
785	785	Section 485A.109(b); and
786	786	(6) any additional information the office requires.
787	787	SECTION 13. Section 485A.110(a), Government Code, is
788	788	amended to read as follows:
789	789	(a) The office shall deny an application for the designation
790	790	of a qualified media production location if:
791	791	(1) the office determines that the nominated
792	792	location does not satisfy the criteria under Section 485A.102; or
793	793	(2) [the office determines that the number of media
794	794	production location designations or number of approved media
795	795	production development zones at the time of the application are at
796	796	the maximum limit prescribed by Section 485A.103; or
797	797	[(3)] the comptroller has not certified that the
798	798	proposed project or activity to be conducted at the location will
799	799	have a positive impact on state revenue.
800	800	SECTION 14. Section 485A.111(b), Government Code, is
801	801	amended to read as follows:
802	802	(b) A location may be designated as a qualified media
803	803	production location, and may be eligible for the sales and use tax
804	804	exemption as provided by Section 151.3415, Tax Code, for a maximum
805	805	of four [two] years, notwithstanding Section 151.3415, Tax Code.
806	806	SECTION 15. Section 485A.203, Government Code, is amended
807	807	to read as follows:
808	808	Sec. 485A.203. DURATION OF DESIGNATION. Except as
809	809	provided by Section 485A.204, the office's certification of a
810	810	person as a qualified person is effective until the fourth [second]
811	811	anniversary of the date the designation is made, regardless of
812	812	whether the designation of the qualified media production location
813	813	at which the qualified person is to perform its commitments under
814	814	this chapter is terminated before that date.
815	815	SECTION 16. Subchapter F, Chapter 485A, Government Code, is
816	816	amended by adding Section 485A.253 to read as follows:
817	817	Sec. 485A.253. ENTITLEMENT BENEFITS FOR MEDIA PRODUCTION
818	818	FACILITY CONSTRUCTION. Notwithstanding any other provision of this
819	819	chapter, a media production facility or any qualified person is
820	820	entitled to the benefits under this chapter for construction of a
821	821	media production facility that begins on or after January 1, 2023.
822	822	SECTION 17. Section 485A.103, Government Code, is repealed.
823	823	SECTION 18. To the extent of any conflict, this Act prevails
824	824	over another Act of the 88th Legislature, Regular Session, 2023,
825	825	relating to nonsubstantive additions to and corrections in enacted
826	826	codes.
827	827	SECTION 19. This Act takes effect September 1, 2023.