Texas 2025 - 89th Regular

Texas House Bill HB2212 Compare Versions

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1	1	89R2460 PRL-F
2	2	By: Bumgarner H.B. No. 2212
3	3
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5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the promotion of film and television production in this
10	10	state, including the eligibility of film or television productions
11	11	for funding under the major events reimbursement program, the
12	12	creation of a film events trust fund and a film production tax
13	13	rebate trust fund, the establishment of virtual film production
14	14	institutes, and the designation of media production development
15	15	zones.
16	16	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
17	17	SECTION 1. Subtitle H, Title 3, Education Code, is amended
18	18	by adding Chapter 157 to read as follows:
19	19	CHAPTER 157. VIRTUAL FILM PRODUCTION INSTITUTES
20	20	Sec. 157.001. DEFINITION. In this chapter, "institute"
21	21	means a virtual film production institute established under this
22	22	chapter.
23	23	Sec. 157.002. ESTABLISHMENT; PURPOSE. Texas A&M University
24	24	at College Station and Texas State University may each establish a
25	25	virtual film production institute to provide educational
26	26	opportunities for students interested in studying virtual film
27	27	production and promote student engagement in the development of a
28	28	virtual film production industry in this state.
29	29	Sec. 157.003. FUNDING. In addition to any amount the
30	30	legislature appropriates, each institute may apply for and accept
31	31	gifts, grants, and donations from the federal government or any
32	32	other source.
33	33	SECTION 2. Section 475.0001, Government Code, is amended by
34	34	adding Subdivisions (3-a) and (3-b) to read as follows:
35	35	(3-a) "Film or television production" means the
36	36	activities necessary to prepare, produce, perform, or present in
37	37	this state a television program, movie, virtual film, or any
38	38	combination of multimedia program.
39	39	(3-b) "Film or television production organization"
40	40	means an organization that produces a television program, movie,
41	41	virtual film, or multimedia program, regardless of the manner in
42	42	which the organization is formed or legally organized. The term
43	43	includes a production company, a studio, or a production team for a
44	44	television program, movie, virtual film, or multimedia program.
45	45	SECTION 3. Sections 478.0001(3) and (7), Government Code,
46	46	are 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) the Bassmaster Classic;
53	53	(D) a Big 12 Football Conference Championship
54	54	game;
55	55	(E) the Breeders' Cup World Championships;
56	56	(F) the CMT (Country Music Television) Music
57	57	Awards;
58	58	(G) a game of the College Football Playoff or its
59	59	successor;
60	60	(H) the Confederation of North, Central America
61	61	and Caribbean Association Football (Concacaf) Gold Cup;
62	62	(I) a CONVRG conference;
63	63	(J) an Elite Rodeo Association World
64	64	Championship;
65	65	(K) a Federation Equestre Internationale World
66	66	Cup Final;
67	67	(L) a Federation Internationale de Motocyclisme
68	68	(FIM) World Supercross Championship race;
69	69	(L-1) a film or television production;
70	70	(M) the Formula One United States Grand Prix;
71	71	(N) the largest event held each year at a sports
72	72	entertainment venue in this state with a permanent seating
73	73	capacity, including grandstand and premium seating, of at least
74	74	125,000 on September 1, 2021;
75	75	(O) the Major League Baseball All-Star Game;
76	76	(P) the Major League Soccer All-Star Game or the
77	77	Major League Soccer Cup;
78	78	(Q) a mixed martial arts championship;
79	79	(R) the Moto Grand Prix of the United States;
80	80	(S) the National Association for Stock Car Auto
81	81	Racing (NASCAR):
82	82	(i) All-Star Race;
83	83	(ii) season-ending Championship Race; or
84	84	(iii) Texas Grand Prix race;
85	85	(T) the National Basketball Association All-Star
86	86	Game;
87	87	(U) a National Collegiate Athletic Association
88	88	Final Four tournament game;
89	89	(V) the National Collegiate Athletic Association
90	90	men's or women's lacrosse championships;
91	91	(W) a national collegiate championship of an
92	92	amateur sport sanctioned by the national governing body of the
93	93	sport that is recognized by the United States Olympic Committee;
94	94	(X) the National Cutting Horse Association
95	95	Triple Crown;
96	96	(Y) the National Hockey League All-Star Game;
97	97	(Z) the National Hot Rod Association Fall
98	98	Nationals at the Texas Motorplex;
99	99	(AA) a national political convention of the
100	100	Republican National Committee or the Democratic National
101	101	Committee;
102	102	(BB) the National Reined Cow Horse Association
103	103	(NRCHA) Championship Series;
104	104	(CC) an Olympic activity, including a Junior or
105	105	Senior activity, training program, or feeder program sanctioned by
106	106	the United States Olympic Committee's Community Olympic
107	107	Development Program;
108	108	(DD) a presidential general election debate;
109	109	(EE) the Professional Bull Riders World Finals;
110	110	(FF) the Professional Rodeo Cowboys Association
111	111	National Finals Rodeo;
112	112	(GG) a series of cricket matches or competitions
113	113	within the T20 World Cup;
114	114	(HH) a Super Bowl;
115	115	(II) the United States Open Championship;
116	116	(JJ) a World Cup soccer game or the World Cup
117	117	soccer tournament;
118	118	(KK) the World Games;
119	119	(LL) a World Wrestling Entertainment
120	120	WrestleMania event; or
121	121	(MM) the X Games.
122	122	(7) "Site selection organization" means:
123	123	(A) the Academy of Country Music;
124	124	(B) the Amateur Athletic Union;
125	125	(C) Bass Anglers Sportsman Society, LLC;
126	126	(D) the Big 12 Conference;
127	127	(E) CMT (Country Music Television) Productions
128	128	Inc.;
129	129	(F) the College Football Playoff Administration,
130	130	LLC, or its successor;
131	131	(G) the Commission on Presidential Debates;
132	132	(H) the Confederation of North, Central America
133	133	and Caribbean Association Football (Concacaf);
134	134	(I) the Democratic National Committee;
135	135	(J) Dorna Sports;
136	136	(K) the Elite Rodeo Association;
137	137	(L) Encore Live;
138	138	(M) ESPN or an affiliate;
139	139	(N) the Federation Equestre Internationale
140	140	(FEI);
141	141	(O) the Federation Internationale de Football
142	142	Association (FIFA);
143	143	(O-1) a film or television production
144	144	organization;
145	145	(P) the International Cricket Council;
146	146	(Q) the International World Games Association;
147	147	(R) Major League Baseball;
148	148	(S) Major League Soccer;
149	149	(T) the National Association for Stock Car Auto
150	150	Racing (NASCAR);
151	151	(U) the National Basketball Association;
152	152	(V) the National Collegiate Athletic
153	153	Association;
154	154	(W) the National Cutting Horse Association;
155	155	(X) the National Football League;
156	156	(Y) the National Hockey League;
157	157	(Z) the National Hot Rod Association;
158	158	(AA) the National Reined Cow Horse Association
159	159	(NRCHA);
160	160	(BB) Professional Bull Riders, LLC;
161	161	(CC) the Professional Rodeo Cowboys Association;
162	162	(DD) the Republican National Committee;
163	163	(EE) SX Global;
164	164	(FF) the Ultimate Fighting Championship;
165	165	(GG) the United States Golf Association;
166	166	(HH) the United States Olympic Committee;
167	167	(II) World Wrestling Entertainment; or
168	168	(JJ) the national governing body of a sport that
169	169	is recognized by:
170	170	(i) the Federation Internationale de
171	171	l'Automobile;
172	172	(ii) Formula One Management Limited or its
173	173	successor;
174	174	(iii) the National Thoroughbred Racing
175	175	Association; or
176	176	(iv) the United States Olympic Committee.
177	177	SECTION 4. Section 478.0051, Government Code, is amended by
178	178	adding Subsection (d) to read as follows:
179	179	(d) Notwithstanding Subsection (b), an event described by
180	180	Section 478.0001(3)(L-1) may receive funding through the program if
181	181	a site selection organization selects:
182	182	(1) a site in this state as the sole site for the
183	183	event;
184	184	(2) two or more predetermined locations as the sites
185	185	in this state for the event; or
186	186	(3) a site in this state as the sole site for the event
187	187	in a region composed of this state and one or more adjoining states.
188	188	SECTION 5. Subtitle E-1, Title 4, Government Code, is
189	189	amended by adding Chapter 480A to read as follows:
190	190	CHAPTER 480A. FILM EVENTS TRUST FUND
191	191	SUBCHAPTER A. GENERAL PROVISIONS
192	192	Sec. 480A.0001. PURPOSE. The purpose of this chapter is to
193	193	establish a film events trust fund to maximize the preparation,
194	194	production, performance, or presentation of television programs,
195	195	movies, virtual films, and multimedia productions in this state and
196	196	for successful competition with other states for those programs,
197	197	movies, films, and productions.
198	198	Sec. 480A.0002. DEFINITIONS. In this chapter:
199	199	(1) "Endorsing county" means a county that contains a
200	200	site selected by a site selection organization for a film event.
201	201	(2) "Endorsing entity" means a local organizing
202	202	committee, endorsing county, or endorsing municipality.
203	203	(3) "Endorsing municipality" means a municipality
204	204	that contains a site selected by a site selection organization for a
205	205	film event.
206	206	(4) "Event support contract" means a joinder
207	207	undertaking, a joinder agreement, or a similar contract executed by
208	208	a site selection organization and a local organizing committee, an
209	209	endorsing municipality, or an endorsing county for a film event.
210	210	(5) "Film event" includes the activities necessary to
211	211	prepare, produce, perform, or present in this state a television
212	212	program, movie, virtual film, or any combination of multimedia
213	213	programs or a series of television programs, movies, virtual films,
214	214	or multimedia programs, for which an endorsing entity seeks
215	215	approval from a site selection organization to conduct those
216	216	activities at a site in this state. The term includes any activity
217	217	related to or associated with the preparation, production,
218	218	performance, or presentation.
219	219	(6) "Local organizing committee" means a nonprofit
220	220	corporation or the corporation's successor in interest that an
221	221	endorsing municipality or endorsing county authorizes to:
222	222	(A) pursue an application and bid on the
223	223	applicant's behalf to a site selection organization for selection
224	224	as the site of a film event; or
225	225	(B) execute an agreement with a site selection
226	226	organization regarding a bid to host a film event.
227	227	(7) "Office" means the Texas Economic Development and
228	228	Tourism Office within the office of the governor.
229	229	(8) "Site" includes one or more sites in this state at
230	230	which a film event is held.
231	231	(9) "Site selection organization" means a film or
232	232	television organization that conducts or considers conducting in
233	233	this state a film event eligible under Section 480A.0051.
234	234	Sec. 480A.0003. RULES. (a) The office may adopt rules
235	235	necessary to implement this chapter.
236	236	(b) The rules adopted under this section must be prescribed
237	237	and applied to promote the purpose of this chapter, as provided by
238	238	Section 480A.0001.
239	239	(c) The office may adopt rules necessary to accommodate a
240	240	film event occurring over multiple days, weeks, or years, and in
241	241	multiple locations across this state. Notwithstanding any other
242	242	law, to the extent of a conflict between an office rule adopted to
243	243	accomplish the purposes of this subsection and another provision of
244	244	this chapter, the rule controls.
245	245	Sec. 480A.0004. CONSTRUCTION OF CHAPTER. (a) This chapter
246	246	may not be construed as creating or requiring a state guarantee of
247	247	an obligation imposed on an endorsing municipality, an endorsing
248	248	county, or this state under an event support contract or another
249	249	agreement relating to hosting a film event in this state.
250	250	(b) This chapter shall be construed and applied to
251	251	effectuate the purpose of this chapter.
252	252	SUBCHAPTER B. ELIGIBILITY
253	253	Sec. 480A.0051. FILM EVENTS ELIGIBLE FOR FUNDING. (a) A
254	254	film event is eligible for funding under this chapter only if:
255	255	(1) a site selection organization, after conducting a
256	256	highly competitive selection process of one or more sites not in
257	257	this state, selects a site in this state for the film event to be
258	258	held:
259	259	(A) one time; or
260	260	(B) if the film event is scheduled under an event
261	261	contract or event support contract to be held each year for a period
262	262	of years, one time in each year; and
263	263	(2) a site selection organization selects:
264	264	(A) a site in this state as the sole site for the
265	265	film event;
266	266	(B) two or more locations as the sites in this
267	267	state for the film event; or
268	268	(C) a site in this state as the sole site for the
269	269	film event in a region composed of this state and one or more
270	270	adjoining states.
271	271	(b) During the period in which a film event eligible under
272	272	this section is held in this state, a site selection organization
273	273	may select additional sites for the film event.
274	274	Sec. 480A.0052. LIMITATIONS ON CERTAIN FUNDING REQUESTS.
275	275	(a) This section applies only to a film event for which the office
276	276	determines under Section 480A.0102 that the total incremental
277	277	increase in tax receipts is less than $5 million.
278	278	(b) An endorsing municipality or endorsing county may
279	279	during any 12-month period submit requests for funding under this
280	280	chapter for not more than 30 film events to which this section
281	281	applies.
282	282	SUBCHAPTER C. STATE ACTIONS RELATING TO FILM EVENTS
283	283	Sec. 480A.0101. PREREQUISITES FOR OFFICE ACTION. The
284	284	office may not undertake any duty imposed by this chapter unless:
285	285	(1) an endorsing entity submits a request for funding
286	286	under this chapter; and
287	287	(2) the request is accompanied by documentation from a
288	288	site selection organization selecting the site for the film event.
289	289	Sec. 480A.0102. DETERMINATION OF INCREMENTAL INCREASE IN
290	290	CERTAIN TAX RECEIPTS. (a) After a site selection organization
291	291	selects a site for a film event in this state in accordance with an
292	292	application by an endorsing entity, the office shall determine the
293	293	incremental increases in the following tax receipts that the office
294	294	determines are directly attributable to the film event for the
295	295	30-day period concluding at the end of the day after the date on
296	296	which the film event activities in this state are completed or, if
297	297	the film event will be presented on more than one day, after the
298	298	last date on which the film event will be presented:
299	299	(1) the receipts to this state from taxes imposed
300	300	under Chapters 151, 152, 156, and 183, Tax Code, and under Title 5,
301	301	Alcoholic Beverage Code, in the market areas designated under
302	302	Section 480A.0104;
303	303	(2) the receipts collected by this state for each
304	304	endorsing municipality in the market area from the sales and use tax
305	305	imposed by each endorsing municipality under Section 321.101(a),
306	306	Tax Code, and the mixed beverage tax revenue to be received by each
307	307	endorsing municipality under Section 183.051(b), Tax Code;
308	308	(3) the receipts collected by this state for each
309	309	endorsing county in the market area from the sales and use tax
310	310	imposed by each endorsing county under Section 323.101(a), Tax
311	311	Code, and the mixed beverage tax revenue to be received by each
312	312	endorsing county under Section 183.051(b), Tax Code;
313	313	(4) the receipts collected by each endorsing
314	314	municipality in the market area from the hotel occupancy tax
315	315	imposed under Chapter 351, Tax Code; and
316	316	(5) the receipts collected by each endorsing county in
317	317	the market area from the hotel occupancy tax imposed under Chapter
318	318	352, Tax Code.
319	319	(b) The office shall make the determination required by
320	320	Subsection (a) in accordance with procedures the office develops
321	321	and shall base that determination on information submitted by an
322	322	endorsing entity.
323	323	Sec. 480A.0103. TIME FOR DETERMINATION. The office shall
324	324	determine the incremental increase in tax receipts under Section
325	325	480A.0102 not later than the earlier of:
326	326	(1) the 30th day after the date the office receives the
327	327	information for a film event submitted by an endorsing entity on
328	328	which the office bases the determination as provided by Section
329	329	480A.0102(b); or
330	330	(2) one month before the date scheduled for
331	331	commencement of preparation, production, performance, or
332	332	presentation of the film event.
333	333	Sec. 480A.0104. DESIGNATION OF MARKET AREA. (a) For
334	334	purposes of Section 480A.0102(a)(1), the office shall designate as
335	335	a market area for a film event each area in which the office
336	336	determines there is a reasonable likelihood of measurable economic
337	337	impact directly attributable to the preparation, production,
338	338	performance, or presentation of the film event. The office shall
339	339	include areas likely to provide venues, accommodations, and
340	340	services in connection with the film event based on the proposal the
341	341	endorsing entity provides to the office.
342	342	(b) The office shall determine the geographic boundaries of
343	343	each market area.
344	344	(c) An endorsing municipality or endorsing county selected
345	345	as the site for the film event must be included in a market area for
346	346	the film event.
347	347	(d) The office may amend the market area for a film event
348	348	eligible under this section during the period in which the film
349	349	event is held.
350	350	Sec. 480A.0105. ESTIMATE OF TAX REVENUE CREDITED TO FUND.
351	351	(a) Not later than one month before the first date scheduled for
352	352	commencement of preparation, production, performance, or
353	353	presentation of a film event, the office shall provide an estimate
354	354	of the total amount of tax revenue that would be transferred or
355	355	deposited to the film events trust fund under this chapter in
356	356	connection with that film event if the film event were prepared,
357	357	produced, performed, or presented in this state at a site selected
358	358	in accordance with an application by an endorsing entity. The
359	359	office may revise the office's estimate under this subsection
360	360	during the period in which the film event is held.
361	361	(b) The office shall provide the estimate on request to an
362	362	endorsing entity.
363	363	(c) An endorsing entity may submit the office's estimate to
364	364	a site selection organization.
365	365	Sec. 480A.0106. MODEL FILM EVENT SUPPORT CONTRACT AND MODEL
366	366	APPLICATION FORM. (a) The office may adopt a model film event
367	367	support contract and a model application form. If the office adopts
368	368	a contract or form under this subsection, the office shall make the
369	369	documents available on the office's Internet website.
370	370	(b) The office's adoption of a model film event support
371	371	contract and model application form under this section does not
372	372	require the use of those documents for purposes of this chapter.
373	373	SUBCHAPTER D. FUND ESTABLISHMENT AND CONTRIBUTIONS
374	374	Sec. 480A.0151. FILM EVENTS TRUST FUND. The film events
375	375	trust fund is established outside the state treasury and is held in
376	376	trust by the comptroller for administration of this chapter.
377	377	Sec. 480A.0152. DEPOSIT OF MUNICIPAL AND COUNTY TAX
378	378	REVENUE. (a) Each endorsing municipality or endorsing county
379	379	shall remit to the comptroller and the comptroller shall deposit
380	380	into a trust fund created by the comptroller, at the direction of
381	381	the office, and designated as the film events trust fund the amount
382	382	of the municipality's or county's hotel occupancy tax revenue
383	383	determined under Section 480A.0102(a)(4) or (5), less any amount of
384	384	the revenue the municipality or county determines is necessary to
385	385	meet the obligations of the municipality or county.
386	386	(b) The comptroller, at the direction of the office, shall
387	387	retain the amount of sales and use tax revenue and mixed beverage
388	388	tax revenue determined under Section 480A.0102(a)(2) or (3) from
389	389	the amounts otherwise required to be sent to the municipality under
390	390	Sections 321.502 and 183.051(b), Tax Code, or to the county under
391	391	Sections 323.502 and 183.051(b), Tax Code, less any amount of the
392	392	revenue the municipality or county determines is necessary to meet
393	393	the obligations of the municipality or county, and shall deposit
394	394	the retained tax revenue to the film events trust fund.
395	395	(c) The comptroller shall begin retaining and depositing
396	396	the municipal and county tax revenue:
397	397	(1) with the first distribution of that tax revenue
398	398	that occurs after the first day of the period described by Section
399	399	480A.0102(a); or
400	400	(2) at a time the office otherwise determines
401	401	practicable.
402	402	(d) The comptroller shall discontinue retaining the
403	403	municipal and county tax revenue when the amount of the applicable
404	404	tax revenue determined under Section 480A.0102(a)(2) or (3) has
405	405	been retained.
406	406	Sec. 480A.0153. OTHER LOCAL MONEY. (a) In lieu of the
407	407	municipal and county tax revenues remitted or retained under
408	408	Section 480A.0152, an endorsing municipality or endorsing county
409	409	may remit to the office for deposit to the film events trust fund
410	410	other local money in an amount equal to the total amount of
411	411	municipal and county tax revenue determined under Sections
412	412	480A.0102(a)(2)-(5).
413	413	(b) An endorsing municipality or endorsing county must
414	414	remit the other local money not later than the 90th day after the
415	415	last day of the period scheduled for the film event.
416	416	(c) For purposes of Section 480A.0155, the amount deposited
417	417	under this section is considered remitted municipal and county tax
418	418	revenue.
419	419	Sec. 480A.0154. SURCHARGES AND USER FEES. An endorsing
420	420	municipality or endorsing county may collect and remit to the
421	421	office any applicable surcharges and user fees attributable to a
422	422	film event for deposit to the film events trust fund.
423	423	Sec. 480A.0155. STATE TAX REVENUE. (a) The comptroller, at
424	424	the direction of the office, shall transfer to the film events trust
425	425	fund a portion of the state tax revenue in an amount equal to 6.25
426	426	multiplied by the amount of the municipal and county tax revenue
427	427	retained or remitted under this chapter, including:
428	428	(1) local sales and use tax revenue;
429	429	(2) mixed beverage tax revenue;
430	430	(3) hotel occupancy tax revenue; and
431	431	(4) any applicable surcharge and user fee revenue.
432	432	(b) The amount transferred under Subsection (a) may not
433	433	exceed the incremental increase in tax receipts determined under
434	434	Section 480A.0102(a)(1).
435	435	SUBCHAPTER E. DISBURSEMENTS FROM FILM EVENTS TRUST FUND
436	436	Sec. 480A.0201. DISBURSEMENT WITHOUT APPROPRIATION. The
437	437	office may disburse money in the film events trust fund without
438	438	appropriation only as provided by this chapter.
439	439	Sec. 480A.0202. DISBURSEMENT FROM FILM EVENTS TRUST FUND.
440	440	(a) After approval of each contributing endorsing municipality and
441	441	endorsing county, the office may disburse money from the film
442	442	events trust fund for a purpose for which an endorsing entity or
443	443	this state is obligated under an event support contract, including
444	444	any obligation to pay costs incurred in preparing, producing,
445	445	performing, or presenting the film event.
446	446	(b) In considering whether to disburse money from the film
447	447	events trust fund, the office may not consider a contingency clause
448	448	in an event support contract as relieving an endorsing entity's
449	449	obligation to pay a cost under the contract.
450	450	(c) If the office disburses money from the film events trust
451	451	fund, the office shall satisfy the obligation proportionately from
452	452	the local and state revenue in the fund.
453	453	Sec. 480A.0203. REDUCTION OF DISBURSEMENT AMOUNT. (a)
454	454	After the conclusion of the film event, the office shall compare
455	455	information on the number of persons who participated in the film
456	456	event as provided under Section 480A.0251 with any estimated number
457	457	of persons participating in the film event used to determine the
458	458	incremental increase in tax receipts under Section 480A.0102. If
459	459	the actual number of persons who participated in the film event is
460	460	significantly lower than the estimated number of persons
461	461	participating in the film event, the office may reduce the amount of
462	462	a disbursement from the film events trust fund for an endorsing
463	463	entity:
464	464	(1) in proportion to the discrepancy between the
465	465	actual and estimated number of persons participating in the film
466	466	event; and
467	467	(2) in proportion to the amount the entity contributed
468	468	to the fund.
469	469	(b) The office by rule shall:
470	470	(1) define "significantly lower" for purposes of this
471	471	section; and
472	472	(2) provide the manner in which the office may
473	473	proportionately reduce a disbursement.
474	474	(c) This section does not affect the remittance under
475	475	Section 480A.0207 of any money remaining in the film events trust
476	476	fund.
477	477	Sec. 480A.0204. ALLOWABLE EXPENSES. (a) Money in the film
478	478	events trust fund may be used to:
479	479	(1) pay the principal of and interest on notes issued
480	480	under Section 480A.0252; and
481	481	(2) fulfill obligations of an endorsing municipality,
482	482	an endorsing county, or this state to a site selection organization
483	483	under an event support contract.
484	484	(b) Subject to Sections 480A.0202 and 480A.0205, the
485	485	obligations described by Subsection (a)(2) may include the payment
486	486	of:
487	487	(1) the costs relating to the preparation of the film
488	488	event; and
489	489	(2) the costs of producing, performing, or presenting
490	490	the film event, including costs of an improvement or renovation to
491	491	an existing facility and costs of acquisition or construction of a
492	492	new facility or other facility that could be used to prepare,
493	493	produce, perform, or present film events.
494	494	Sec. 480A.0205. LIMITATION ON CERTAIN DISBURSEMENTS. (a)
495	495	A disbursement from the film events trust fund is limited to 25
496	496	percent of the cost of a structural improvement or a fixture if an
497	497	obligation is incurred under an event support contract to make the
498	498	improvement or add the fixture to a site for a film event.
499	499	(b) The remainder of an obligation described by Subsection
500	500	(a) is not eligible for a disbursement from the film events trust
501	501	fund, unless the obligation is for an improvement or fixture for a:
502	502	(1) publicly owned facility; or
503	503	(2) facility that could be used for future film
504	504	events.
505	505	Sec. 480A.0206. PROHIBITED DISBURSEMENTS. (a) Subject to
506	506	Subsection (b), the office may not disburse money from the film
507	507	events trust fund to be used to:
508	508	(1) construct an arena, stadium, or convention center;
509	509	or
510	510	(2) conduct usual and customary maintenance of a
511	511	facility.
512	512	(b) Subsection (a) does not prohibit a disbursement from the
513	513	film events trust fund for the construction of temporary structures
514	514	within an arena, stadium, or convention center that are necessary
515	515	for the preparation, production, performance, and presentation of a
516	516	film event or temporary maintenance of a facility that is necessary
517	517	for the preparation, production, performance, and presentation of a
518	518	film event.
519	519	Sec. 480A.0207. REMITTANCE OF REMAINING FUND MONEY. On
520	520	payment of all municipal, county, or state obligations under an
521	521	event support contract related to the location of a film event in
522	522	this state, the office shall remit to each endorsing entity, in
523	523	proportion to the amount contributed by the entity, any money
524	524	remaining in the film events trust fund.
525	525	SUBCHAPTER F. LOCAL POWERS AND DUTIES RELATING TO FILM EVENTS
526	526	Sec. 480A.0251. REQUIRED INFORMATION. (a) An endorsing
527	527	entity shall provide information the office requires to fulfill the
528	528	office's duties under this chapter, including:
529	529	(1) annual audited statements of any financial records
530	530	a site selection organization requires; and
531	531	(2) data the endorsing entity obtains relating to:
532	532	(A) the number of persons hired, contracted,
533	533	volunteering, or otherwise directly participating in the
534	534	preparation, production, performance, or presentation of the film
535	535	event, including an estimate of the number of persons expected to
536	536	participate in the film event who are not residents of this state;
537	537	(B) the economic impact of the film event; and
538	538	(C) any other information the office considers
539	539	necessary.
540	540	(b) An endorsing entity must provide any annual audited
541	541	financial statement the office requires not later than the end of
542	542	the fourth month after the last day of the period covered by the
543	543	financial statement.
544	544	Sec. 480A.0252. ISSUANCE OF NOTES. (a) To meet its
545	545	obligations under an event support contract to improve, construct,
546	546	renovate, or acquire facilities or to acquire equipment, an
547	547	endorsing municipality by ordinance or an endorsing county by order
548	548	may authorize the issuance of notes.
549	549	(b) An endorsing municipality or endorsing county may
550	550	provide for the notes to be paid from and secured by:
551	551	(1) amounts on deposit or amounts to be transferred or
552	552	deposited to the film events trust fund; or
553	553	(2) surcharges from user fees charged in connection
554	554	with the film event, including parking or ticket fees, if the film
555	555	event is premiered, performed, or otherwise presented exclusively
556	556	at a venue in this state for which parking or ticket fees may be
557	557	collected.
558	558	(c) A note issued must mature not later than the seventh
559	559	anniversary of the date of issuance.
560	560	Sec. 480A.0253. PLEDGE OF SURCHARGES TO GUARANTEE
561	561	OBLIGATIONS. An endorsing municipality or endorsing county may
562	562	guarantee its obligations under an event support contract and this
563	563	chapter by pledging, in addition to the tax revenue deposited under
564	564	Section 480A.0152, surcharges from user fees charged in connection
565	565	with the film event, including parking or ticket fees, if the film
566	566	event is premiered, performed, or otherwise presented exclusively
567	567	at a venue in this state for which parking or ticket fees may be
568	568	collected.
569	569	SECTION 6. Subtitle F, Title 4, Government Code, is amended
570	570	by adding Chapter 483 to read as follows:
571	571	CHAPTER 483. FILM OR TELEVISION PRODUCTION TAX REBATE TRUST FUND
572	572	SUBCHAPTER A. GENERAL PROVISIONS
573	573	Sec. 483.0001. DEFINITIONS. In this chapter:
574	574	(1) "Competitive selection process" means the
575	575	competitive selection process established by office rule for a film
576	576	or television production organization to use in considering sites
577	577	for film or television productions.
578	578	(2) "Film or television production" means a television
579	579	program, movie, virtual film, or any combination of multimedia
580	580	programming produced, filmed, performed, or presented wholly or
581	581	partly in this state.
582	582	(3) "Film or television production organization" has
583	583	the meaning assigned by Section 475.0001.
584	584	(4) "Office" means the Music, Film, Television, and
585	585	Multimedia Office within the office of the governor.
586	586	(5) "Trust fund" means the film production tax rebate
587	587	trust fund established under this chapter.
588	588	Sec. 483.0002. RULES. (a) The office shall adopt rules
589	589	necessary to implement this chapter.
590	590	(b) Any rules adopted under this section must be designed
591	591	and applied to encourage and incentivize organizations to select a
592	592	site in this state to conduct film or television productions.
593	593	(c) The office has broad discretion in implementing this
594	594	chapter and in adopting rules necessary for that implementation to
595	595	allow for the creation of an outstanding and competitive rebate
596	596	program to attract film or television productions to this state.
597	597	(d) The office may adopt rules necessary to accommodate a
598	598	film or television production occurring over multiple days, weeks,
599	599	or years, and in multiple locations across this state.
600	600	Notwithstanding any other law, to the extent of a conflict between
601	601	an office rule adopted to accomplish the purposes of this
602	602	subsection and another provision of this chapter, the rule
603	603	controls.
604	604	SUBCHAPTER B. ELIGIBILITY
605	605	Sec. 483.0051. FILM OR TELEVISION PRODUCTIONS ELIGIBLE FOR
606	606	FUNDING. A film or television production is eligible for funding
607	607	under this chapter only if a film or television production
608	608	organization, after conducting a highly competitive selection
609	609	process of one or more sites not in this state, selects one or more
610	610	sites in this state for all or part of the production.
611	611	SUBCHAPTER C. STATE ACTIONS RELATING TO PRODUCTIONS
612	612	Sec. 483.0101. DETERMINATION OF INCREMENTAL INCREASE IN
613	613	CERTAIN TAX RECEIPTS. After a film or television production
614	614	organization selects a site or sites for a film or television
615	615	production, the organization shall file an application with the
616	616	office and supply information the office considers necessary to
617	617	determine the incremental increases in the receipts to this state
618	618	from taxes imposed under Chapters 151, 152, 156, and 183, Tax Code,
619	619	and under Title 5, Alcoholic Beverage Code, in the market area
620	620	designated under Section 483.0103 that the office determines are
621	621	directly attributable to the preparation, production, performance,
622	622	and presentation of the film or television production.
623	623	Sec. 483.0102. TIME FOR DETERMINATION. The office shall
624	624	calculate the incremental increase in tax receipts under Section
625	625	483.0101 not later than the 60th day after the date the film or
626	626	television production organization or its designated agent or
627	627	representative submits the necessary documentation to the office to
628	628	determine the rebate amount.
629	629	Sec. 483.0103. DESIGNATION OF MARKET AREA. For purposes of
630	630	Section 483.0101, the office shall designate for the film or
631	631	television production a market area where there is a reasonable
632	632	likelihood of measurable economic impact directly attributable to
633	633	the preparation, production, performance, or presentation of the
634	634	production. The office shall include market areas likely to
635	635	provide venues, accommodations, and services in connection with the
636	636	production based on the application provided to the office.
637	637	Sec. 483.0104. MODEL FILM OR TELEVISION PRODUCTION TAX
638	638	REBATE APPLICATION. (a) The office may adopt a model film or
639	639	television production tax rebate application form. If the office
640	640	adopts a model form under this section, the office shall make the
641	641	form available on the office's Internet website.
642	642	(b) The office's adoption of a model film or television
643	643	production tax rebate application form under this section does not
644	644	require the use of that form for purposes of this chapter.
645	645	SUBCHAPTER D. TRUST FUND ESTABLISHMENT AND CONTRIBUTIONS
646	646	Sec. 483.0151. FILM PRODUCTION TAX REBATE TRUST FUND. The
647	647	film production tax rebate trust fund is established outside the
648	648	state treasury and is held in trust by the comptroller for
649	649	administration of this chapter.
650	650	Sec. 483.0152. STATE TAX REVENUE. Not later than the 30th
651	651	day after notice from the office, the comptroller, at the direction
652	652	of the office, shall transfer to the trust fund a portion of the
653	653	state tax revenue in an amount equal to 25 percent of the amount of
654	654	incremental increases in tax receipts determined under Section
655	655	483.0101.
656	656	Sec. 483.0153. INTEREST. Any interest accumulated over
657	657	time shall remain in the trust fund for use by the office in paying
658	658	the costs of administering the trust fund. The office may disburse
659	659	all or part of the retained interest in the trust fund to the office
660	660	for that purpose.
661	661	SUBCHAPTER E. DISBURSEMENTS FROM TRUST FUND
662	662	Sec. 483.0201. DISBURSEMENT WITHOUT APPROPRIATION. The
663	663	office may disburse money in the trust fund without appropriation
664	664	only as provided by this chapter.
665	665	Sec. 483.0202. REBATE DISBURSEMENT FROM TRUST FUND. In
666	666	accordance with procedures adopted by the office, the office shall
667	667	disburse money from the trust fund to a film or television
668	668	production organization in an amount equal to 25 percent of the
669	669	incremental increase in the tax receipts determined under Section
670	670	483.0101 for the applicable film or television production.
671	671	SUBCHAPTER F. MULTIPLE FUNDING REQUESTS
672	672	Sec. 483.0251. APPLICABILITY OF LAW TO MULTIPLE FUNDING
673	673	REQUESTS. (a) The provisions within this chapter are cumulative of
674	674	all other existing incentive programs or any program created in the
675	675	future. Subject to Subsection (b), a person may receive a
676	676	reimbursement, disbursement, or rebate under one or more incentive
677	677	programs.
678	678	(b) Notwithstanding Subsection (a), a person may not
679	679	receive a reimbursement, disbursement, or rebate under Chapter 478
680	680	or 480A or this chapter that exceeds the highest incremental
681	681	increase in receipts to this state from taxes imposed under
682	682	Chapters 151, 152, 156, and 183, Tax Code, and under Title 5,
683	683	Alcoholic Beverage Code, as the office determines, in the market
684	684	area the office designates.
685	685	(c) A person may receive one or more reimbursements,
686	686	disbursements, and rebates under Chapters 478 and 480A and this
687	687	chapter in addition to a grant awarded under Chapter 485.
688	688	SECTION 7. Section 485A.002, Government Code, is amended by
689	689	amending Subdivisions (1) and (4) and adding Subdivision (1-a) to
690	690	read as follows:
691	691	(1) "Institution of higher education" has the meaning
692	692	assigned by Section 61.003, Education Code.
693	693	(1-a) "Media production facility" means a structure,
694	694	building, or room used for the specific purpose of creating a moving
695	695	image project. The term includes but is not limited to:
696	696	(A) a soundstage and scoring stage;
697	697	(B) a production office;
698	698	(C) an editing facility, an animation production
699	699	facility, and a video game production facility;
700	700	(D) a storage and construction space; [and]
701	701	(E) a sound recording studio and motion capture
702	702	studio; and
703	703	(F) a virtual production facility.
704	704	(4) "Nominating body" means the governing body of a
705	705	municipality, [or] county, or institution of higher education, or a
706	706	combination of the governing bodies of municipalities, [or]
707	707	counties, or institutions of higher education that:
708	708	(A) recognizes a qualified area as a media
709	709	production development zone; and
710	710	(B) nominates and applies for designation of a
711	711	location in a media production development zone as a qualified
712	712	media production location.
713	713	SECTION 8. Section 485A.101, Government Code, is amended to
714	714	read as follows:
715	715	Sec. 485A.101. CRITERIA FOR MEDIA PRODUCTION DEVELOPMENT
716	716	ZONE RECOGNITION. To be approved as a media production development
717	717	zone, an area:
718	718	(1) must be in a metropolitan statistical area, the
719	719	principal municipality of which has the adequate workforce,
720	720	infrastructure, facilities, or resources to support the production
721	721	and completion of moving image projects;
722	722	(2) must be recognized as a media production
723	723	development zone by:
724	724	(A) ordinance or order, as appropriate, of the
725	725	governing body of a municipality or the commissioners court of a
726	726	county; or
727	727	(B) resolution or order of an institution of
728	728	higher education; and
729	729	(3) will contain a qualified media production location
730	730	within its geographical boundaries that meets the criteria under
731	731	Section 485A.102.
732	732	SECTION 9. Section 485A.104(a), Government Code, is amended
733	733	to read as follows:
734	734	(a) The governing body of a municipality, [or] county, or
735	735	institution of higher education individually or in combination with
736	736	other municipalities, [or] counties, or institutions of higher
737	737	education, by ordinance, resolution, or order, as appropriate, may
738	738	nominate as a qualified media production location a location within
739	739	its jurisdiction that meets the criteria under Section 485A.102.
740	740	SECTION 10. Section 485A.105, Government Code, is amended
741	741	to read as follows:
742	742	Sec. 485A.105. NOMINATING ORDINANCE, RESOLUTION, OR ORDER.
743	743	An ordinance, resolution, or order nominating a location as a
744	744	qualified media production location must:
745	745	(1) describe precisely both the media production
746	746	development zone in which the location is to be included and the
747	747	proposed location by a legal description or reference to municipal
748	748	or county boundaries;
749	749	(2) state a finding that the location meets the
750	750	requirements of this chapter and that the media production
751	751	development zone in which the location is to be included has been
752	752	recognized as a zone by ordinance, resolution, or order, as
753	753	appropriate, by the nominating body;
754	754	(3) summarize briefly the local financial incentives,
755	755	including tax incentives, that, at the election of the nominating
756	756	body, will apply to a qualified person;
757	757	(4) contain a brief description of the project or
758	758	activity to be conducted by a qualified person at the location;
759	759	(5) nominate the location as a qualified media
760	760	production location; and
761	761	(6) contain an economic impact analysis from an
762	762	economic expert.
763	763	SECTION 11. Section 485A.106(b), Government Code, is
764	764	amended to read as follows:
765	765	(b) The application must include:
766	766	(1) a certified copy of the ordinance, resolution, or
767	767	order, as appropriate, nominating the location as a media
768	768	production location;
769	769	(2) a certified copy of the ordinance, resolution, or
770	770	order, as appropriate, recognizing the zone in which the location
771	771	is to be included as a media production development zone;
772	772	(3) appropriate supporting documents demonstrating
773	773	that the location qualifies for designation as a qualified media
774	774	production location;
775	775	(4) an estimate of the economic impact of the
776	776	designation of the location as a qualified media production
777	777	location on the revenues of the governmental entity or entities
778	778	nominating the location as a qualified media production location,
779	779	considering the financial incentives and benefits contemplated;
780	780	(5) an economic impact analysis of the proposed
781	781	project or activities to be conducted at the proposed qualified
782	782	media production location, which must include:
783	783	(A) an estimate of the amount of revenue to be
784	784	generated to the state by the project or activity;
785	785	(B) an estimate of any secondary economic
786	786	benefits to be generated by the project or activity;
787	787	(C) an estimate of the amount of state taxes to be
788	788	exempted, as provided by Section 151.3415, Tax Code; and
789	789	(D) any other information required by the
790	790	comptroller for purposes of making the certification required by
791	791	Section 485A.109(b); and
792	792	(6) any additional information the office requires.
793	793	SECTION 12. Section 485A.110(a), Government Code, is
794	794	amended to read as follows:
795	795	(a) The office shall deny an application for the designation
796	796	of a qualified media production location if:
797	797	(1) the office determines that the nominated
798	798	location does not satisfy the criteria under Section 485A.102; or
799	799	(2) [the office determines that the number of media
800	800	production location designations or number of approved media
801	801	production development zones at the time of the application are at
802	802	the maximum limit prescribed by Section 485A.103; or
803	803	[(3)] the comptroller has not certified that the
804	804	proposed project or activity to be conducted at the location will
805	805	have a positive impact on state revenue.
806	806	SECTION 13. Section 485A.111(b), Government Code, is
807	807	amended to read as follows:
808	808	(b) A location may be designated as a qualified media
809	809	production location, and may be eligible for the sales and use tax
810	810	exemption as provided by Section 151.3415, Tax Code, for a maximum
811	811	of four [two] years, notwithstanding Section 151.3415, Tax Code.
812	812	SECTION 14. Section 485A.203, Government Code, is amended
813	813	to read as follows:
814	814	Sec. 485A.203. DURATION OF DESIGNATION. Except as
815	815	provided by Section 485A.204, the office's certification of a
816	816	person as a qualified person is effective until the fourth [second]
817	817	anniversary of the date the designation is made, regardless of
818	818	whether the designation of the qualified media production location
819	819	at which the qualified person is to perform its commitments under
820	820	this chapter is terminated before that date.
821	821	SECTION 15. Subchapter F, Chapter 485A, Government Code, is
822	822	amended by adding Section 485A.253 to read as follows:
823	823	Sec. 485A.253. ENTITLEMENT BENEFITS FOR MEDIA PRODUCTION
824	824	FACILITY CONSTRUCTION. Notwithstanding any other provision of this
825	825	chapter, a media production facility or any qualified person is
826	826	entitled to the benefits under this chapter for construction of a
827	827	media production facility that begins on or after January 1, 2025.
828	828	SECTION 16. Section 485A.103, Government Code, is repealed.
829	829	SECTION 17. This Act takes effect September 1, 2025.