Texas 2025 - 89th Regular

Texas House Bill HB4568 Compare Versions

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1	1	89R18497 BEF-D
2	2	By: Hunter H.B. No. 4568
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the Texas moving image industry incentive program and
10	10	the establishment and funding of the Texas moving image industry
11	11	incentive fund.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	ARTICLE 1. LEGISLATIVE INTENT
14	14	SECTION 1.01. It is the intent of the legislature that no
15	15	Texas moving image industry incentive program grants be used to
16	16	fund inappropriate content or content that portrays Texas or Texans
17	17	in a negative fashion and that moving image projects funded under
18	18	the program conform to general standards of decency and respect the
19	19	diverse beliefs and values of the citizens of Texas.
20	20	ARTICLE 2. TEXAS MOVING IMAGE INDUSTRY INCENTIVE PROGRAM; FUND
21	21	SECTION 2.01. Section 485.021, Government Code, is amended
22	22	by adding Subdivision (1-a) to read as follows:
23	23	(1-a) "Incentive fund" means the Texas moving image
24	24	industry incentive fund established under Section 485.0225.
25	25	SECTION 2.02. Section 485.022, Government Code, is amended
26	26	by amending Subsections (a) and (f) and adding Subsections (g) and
27	27	(h) to read as follows:
28	28	(a) The office shall administer a grant program for
29	29	production companies that produce moving image projects in this
30	30	state:
31	31	(1) using money from the incentive fund; or
32	32	(2) [,] to the extent that gifts, grants, donations,
33	33	or other money, including appropriations, are made available to the
34	34	office for that purpose.
35	35	(f) The following types of projects are not eligible for
36	36	grants under this subchapter:
37	37	(1) pornography or obscene material, as defined by
38	38	Section 43.21, Penal Code;
39	39	(2) news, current event or public access programming,
40	40	political advertising, including public service announcements that
41	41	advance a public policy or political position, or programs that
42	42	include weather or market reports;
43	43	(3) local events or religious services;
44	44	(4) productions not intended for commercial,
45	45	educational, or instructional distribution;
46	46	(5) sporting events or activities;
47	47	(6) awards shows, galas, or telethons and similar
48	48	programs that solicit funds;
49	49	(7) projects intended for undergraduate or graduate
50	50	course credit;
51	51	(8) application software, system software, or
52	52	middleware;
53	53	(9) casino-type video games and interactive digital
54	54	media experiences used in a gambling device, as defined by Section
55	55	47.01, Penal Code; or
56	56	(10) commercials or advertising for this state or any
57	57	agency or department of this state.
58	58	(g) As part of the preliminary application process [Before a
59	59	grant is awarded under this subchapter], the office shall review
60	60	the proposed content of a moving image project in the manner
61	61	provided by office rule and advise the prospective applicant
62	62	whether the content will preclude the project from receiving a
63	63	grant under this subchapter.
64	64	(h) Once an approved project has been completed, the office
65	65	shall review the final content before issuing the grant payment to
66	66	[:
67	67	[(1) require a copy of the final script; and
68	68	[(2)] determine if any substantial changes occurred
69	69	during production on a moving image project to include content
70	70	described by Subsection (e) or (f).
71	71	SECTION 2.03. Subchapter B, Chapter 485, Government Code,
72	72	is amended by adding Section 485.0225 to read as follows:
73	73	Sec. 485.0225. TEXAS MOVING IMAGE INDUSTRY INCENTIVE FUND.
74	74	(a) In this section, "trust company" means the Texas Treasury
75	75	Safekeeping Trust Company.
76	76	(b) The Texas moving image industry incentive fund is
77	77	established as a fund outside the state treasury to be held and
78	78	invested by the trust company and administered by the office.
79	79	(c) Money in the incentive fund may be spent without
80	80	legislative appropriation and may be used only for the purposes of
81	81	awarding grants under this subchapter and paying the trust
82	82	company's expenses of managing the incentive fund's assets.
83	83	(d) The incentive fund consists of:
84	84	(1) money appropriated, transferred, or deposited to
85	85	the credit of the incentive fund by the legislature;
86	86	(2) money, including the proceeds of a fee or tax
87	87	imposed by this state, that by statute is dedicated for deposit to
88	88	the credit of the incentive fund;
89	89	(3) investment earnings and interest earned on amounts
90	90	credited to the incentive fund; and
91	91	(4) gifts, grants, and donations made to the office
92	92	and deposited to the credit of the incentive fund.
93	93	(e) The trust company shall hold and invest the incentive
94	94	fund. The incentive fund may be invested with the state treasury
95	95	pool and may be pooled with other state assets for purposes of
96	96	investment.
97	97	(f) The overall objective for the investment of the
98	98	incentive fund is to maintain sufficient liquidity to meet the
99	99	needs of the incentive fund while striving to preserve the
100	100	purchasing power of the incentive fund over a full economic cycle.
101	101	(g) The trust company may acquire, exchange, sell,
102	102	supervise, manage, or retain any kind of investment that a prudent
103	103	investor, exercising reasonable care, skill, and caution, would
104	104	acquire or retain in light of the purposes, terms, distribution
105	105	requirements, and other circumstances of the incentive fund then
106	106	prevailing, taking into consideration the investment of all the
107	107	assets of the incentive fund rather than a single investment.
108	108	(h) The expenses of managing the incentive fund's assets
109	109	shall be paid from the incentive fund.
110	110	(i) The office annually shall provide to the trust company a
111	111	forecast of the cash flows into and out of the incentive fund. The
112	112	office shall provide updates to the forecast as appropriate to
113	113	ensure the trust company is able to achieve the objective specified
114	114	by Subsection (f).
115	115	(j) The trust company shall disburse money from the
116	116	incentive fund as directed by the office. The office may direct one
117	117	or more disbursements from the incentive fund no more frequently
118	118	than twice in any state fiscal year.
119	119	SECTION 2.04. Section 485.023, Government Code, is amended
120	120	to read as follows:
121	121	Sec. 485.023. QUALIFICATION. To qualify for a grant under
122	122	this subchapter:
123	123	(1) a production company must have spent a minimum of:
124	124	(A) $500,000 [$250,000] in in-state spending for
125	125	a film or television program; or
126	126	(B) $100,000 in in-state spending for a
127	127	commercial or series of commercials, an educational or
128	128	instructional video or series of educational or instructional
129	129	videos, or a digital interactive media production;
130	130	(2) [at least 55 percent of the production crew,
131	131	actors, and extras for a moving image project must be Texas
132	132	residents] unless the office determines and certifies in writing
133	133	that a sufficient number of qualified crew, actors, and extras are
134	134	not available to the company at the time principal photography
135	135	begins, the percentage of the production crew, actors, and extras
136	136	for a moving image project who are Texas residents must be at least:
137	137	(A) 35 percent for a moving image project that
138	138	begins principal photography on or after September 1, 2025, and
139	139	before September 1, 2027;
140	140	(B) 40 percent for a moving image project that
141	141	begins principal photography on or after September 1, 2027, and
142	142	before September 1, 2029;
143	143	(C) 45 percent for a moving image project that
144	144	begins principal photography on or after September 1, 2029, and
145	145	before September 1, 2031; and
146	146	(D) 50 percent for a moving image project that
147	147	begins principal photography on or after September 1, 2031;
148	148	(3) at least 60 percent of the moving image project
149	149	must be filmed in Texas; and
150	150	(4) a production company must submit to the office an
151	151	expended budget, in a format prescribed by the office, that
152	152	reflects all in-state spending and includes all receipts, invoices,
153	153	pay orders, and other documentation considered necessary by the
154	154	office to accurately determine the amount of a production company's
155	155	in-state spending that has occurred.
156	156	SECTION 2.05. Sections 485.024(a) and (c), Government Code,
157	157	are amended to read as follows:
158	158	(a) Except as provided by Section 485.025, for a moving
159	159	image project that is:
160	160	(1) a feature film, a television program other than a
161	161	reality television program, or a visual effects project for a
162	162	feature film or television program other than a reality television
163	163	program with total in-state spending of:
164	164	(A) at least $500,000 but less than $1 million,
165	165	the amount of a grant under this subchapter is equal to five percent
166	166	of total in-state spending for the project;
167	167	(B) at least $1 million but less than $5 million,
168	168	the amount of a grant under this subchapter is equal to 10 percent
169	169	of total in-state spending for the project; or
170	170	(C) at least $5 million, the amount of a grant
171	171	under this subchapter is equal to 25 percent of total in-state
172	172	spending for the project;
173	173	(2) a digital interactive media production with total
174	174	in-state spending of:
175	175	(A) at least $100,000 but less than $1 million,
176	176	the amount of a grant under this subchapter is equal to five percent
177	177	of total in-state spending for the project;
178	178	(B) at least $1 million but less than $5 million,
179	179	the amount of a grant under this subchapter is equal to 10 percent
180	180	of total in-state spending for the project; or
181	181	(C) at least $5 million, the amount of a grant
182	182	under this subchapter is equal to 25 percent of total in-state
183	183	spending for the project;
184	184	(3) a reality television program as defined by office
185	185	rule with total in-state spending of:
186	186	(A) at least $500,000 but less than $1 million,
187	187	the amount of a grant under this subchapter is equal to five percent
188	188	of total in-state spending for the project; or
189	189	(B) at least $1 million, the amount of a grant
190	190	under this subchapter is equal to 10 percent of total in-state
191	191	spending for the project; or
192	192	(4) a commercial, a series of commercials, an
193	193	educational or instructional video, a series of educational or
194	194	instructional videos, or a visual effects project for a commercial,
195	195	series of commercials, educational or instructional video, or
196	196	series of educational or instructional videos with total in-state
197	197	spending of:
198	198	(A) at least $100,000 but less than $1 million,
199	199	the amount of a grant under this subchapter is equal to five percent
200	200	of total in-state spending for the project; or
201	201	(B) at least $1 million, the amount of a grant
202	202	under this subchapter is equal to 10 percent of total in-state
203	203	spending for the project [may not exceed the amount established by
204	204	office rule. The office shall adopt rules prescribing the method
205	205	the office will use to calculate the amount of a grant under this
206	206	subsection. The office shall publish a written summary of the
207	207	method for determining grants before awarding a grant under this
208	208	section. The method must consider at a minimum:
209	209	[(1) the current and likely future effect a moving
210	210	image project will have on employment, tourism, and economic
211	211	activity in this state; and
212	212	[(2) the amount of a production company's in-state
213	213	spending for a moving image project].
214	214	(c) The office may [only] make a grant from the incentive
215	215	fund or appropriated funds.
216	216	SECTION 2.06. Section 485.025, Government Code, is amended
217	217	to read as follows:
218	218	Sec. 485.025. ADDITIONAL GRANTS [GRANT] FOR CERTAIN
219	219	PROJECTS [UNDERUTILIZED AND ECONOMICALLY DISTRESSED AREAS]. (a)
220	220	In addition to the grant calculated under Section 485.024, a
221	221	production company is eligible for:
222	222	(1) a Texas heritage grant in an amount equal to 2.5
223	223	percent of total in-state spending for a moving image project that
224	224	qualifies under Subsection (b);
225	225	(2) a rural filming grant in an amount equal to 2.5
226	226	percent of total in-state spending for a moving image project that
227	227	qualifies under Subsection (c); or
228	228	(3) a postproduction grant in an amount equal to one
229	229	percent of total in-state spending for a moving image project that
230	230	qualifies under Subsection (d).
231	231	(b) A moving image project qualifies for a Texas heritage
232	232	grant under Subsection (a)(1) if the project is designated by the
233	233	office as a Texas heritage project according to rules adopted by the
234	234	office. The office is not required to designate any moving image
235	235	project as a Texas heritage project and has sole discretion to make
236	236	that designation. In determining whether to designate a moving
237	237	image project as a Texas heritage project, the office shall
238	238	consider:
239	239	(1) the project's current and likely future effect on
240	240	the promotion of family values; or
241	241	(2) whether the project portrays Texas and Texans in a
242	242	positive fashion.
243	243	(c) A moving image project qualifies for a rural filming
244	244	grant under Subsection (a)(2) if the production company spends at
245	245	least 35 percent of the project's filming days or man hours, as
246	246	applicable and as defined by office rule, in a county in this state
247	247	with a population of 300,000 or less.
248	248	(d) A moving image project qualifies for a postproduction
249	249	grant under Subsection (a)(3) if at least 25 percent of the total
250	250	in-state spending for the project is spent by the production
251	251	company during postproduction on eligible expenditures as provided
252	252	by office rule, including expenditures for labor, vendor, and music
253	253	costs.
254	254	(e) A moving image project may qualify for and receive more
255	255	than one additional grant under Subsection (a) [that spends at
256	256	least 25 percent of a moving image project's filming days in an
257	257	underutilized and economically distressed area is eligible for an
258	258	additional grant in an amount equal to 2.5 percent of the total
259	259	amount of the production company's in-state spending for the moving
260	260	image project].
261	261	SECTION 2.07. Section 151.801, Tax Code, is amended by
262	262	amending Subsection (a) and adding Subsection (g) to read as
263	263	follows:
264	264	(a) Except for [the] amounts otherwise allocated under this
265	265	section [Subsections (b), (c), (c-2), (c-3), and (f)], all proceeds
266	266	from the collection of the taxes imposed by this chapter shall be
267	267	deposited to the credit of the general revenue fund.
268	268	(g) Not later than the 30th day of each state fiscal
269	269	biennium, the comptroller shall deposit to the credit of the Texas
270	270	moving image industry incentive fund established under Section
271	271	485.0225, Government Code, $500 million of the proceeds from the
272	272	collection of the taxes imposed by this chapter.
273	273	SECTION 2.08. (a) The Music, Film, Television, and
274	274	Multimedia Office shall adopt rules necessary to implement and
275	275	administer Subchapter B, Chapter 485, Government Code, as amended
276	276	by this article.
277	277	(b) The comptroller of public accounts may adopt rules
278	278	necessary to implement and administer Section 485.0225, Government
279	279	Code, as added by this article.
280	280	ARTICLE 3. SUNSET PROVISIONS
281	281	SECTION 3.01. Effective September 1, 2035, Sections
282	282	485.022(a) and (f), Government Code, are amended to read as
283	283	follows:
284	284	(a) The office shall administer a grant program for
285	285	production companies that produce moving image projects in this
286	286	state, to the extent that gifts, grants, donations, or other money,
287	287	including appropriations, are made available to the office for that
288	288	purpose.
289	289	(f) Before a grant is awarded under this subchapter, the
290	290	office shall:
291	291	(1) require a copy of the final script; and
292	292	(2) determine if any substantial changes occurred
293	293	during production on a moving image project to include content
294	294	described by Subsection (e).
295	295	SECTION 3.02. Effective September 1, 2035, Section 485.023,
296	296	Government Code, is amended to read as follows:
297	297	Sec. 485.023. QUALIFICATION. To qualify for a grant under
298	298	this subchapter:
299	299	(1) a production company must have spent a minimum of:
300	300	(A) $250,000 in in-state spending for a film or
301	301	television program; or
302	302	(B) $100,000 in in-state spending for a
303	303	commercial or series of commercials, an educational or
304	304	instructional video or series of educational or instructional
305	305	videos, or a digital interactive media production;
306	306	(2) at least 55 percent of the production crew,
307	307	actors, and extras for a moving image project must be Texas
308	308	residents unless the office determines and certifies in writing
309	309	that a sufficient number of qualified crew, actors, and extras are
310	310	not available to the company at the time principal photography
311	311	begins;
312	312	(3) at least 60 percent of the moving image project
313	313	must be filmed in Texas; and
314	314	(4) a production company must submit to the office an
315	315	expended budget, in a format prescribed by the office, that
316	316	reflects all in-state spending and includes all receipts, invoices,
317	317	pay orders, and other documentation considered necessary by the
318	318	office to accurately determine the amount of a production company's
319	319	in-state spending that has occurred.
320	320	SECTION 3.03. Effective September 1, 2035, Sections
321	321	485.024(a) and (c), Government Code, are amended to read as
322	322	follows:
323	323	(a) Except as provided by Section 485.025, a grant under
324	324	this subchapter may not exceed the amount established by office
325	325	rule. The office shall adopt rules prescribing the method the
326	326	office will use to calculate the amount of a grant under this
327	327	subsection. The office shall publish a written summary of the
328	328	method for determining grants before awarding a grant under this
329	329	section. The method must consider at a minimum:
330	330	(1) the current and likely future effect a moving
331	331	image project will have on employment, tourism, and economic
332	332	activity in this state; and
333	333	(2) the amount of a production company's in-state
334	334	spending for a moving image project.
335	335	(c) The office may only make a grant from appropriated
336	336	funds.
337	337	SECTION 3.04. Effective September 1, 2035, Section 485.025,
338	338	Government Code, is amended to read as follows:
339	339	Sec. 485.025. ADDITIONAL GRANT FOR UNDERUTILIZED AND
340	340	ECONOMICALLY DISTRESSED AREAS. In addition to the grant calculated
341	341	under Section 485.024, a production company that spends at least 25
342	342	percent of a moving image project's filming days in an
343	343	underutilized and economically distressed area is eligible for an
344	344	additional grant in an amount equal to 2.5 percent of the total
345	345	amount of the production company's in-state spending for the moving
346	346	image project.
347	347	SECTION 3.05. The following provisions added by Article 2
348	348	of this Act expire on August 31, 2035:
349	349	(1) Section 485.021(1-a), Government Code;
350	350	(2) Sections 485.022(g) and (h), Government Code;
351	351	(3) Section 485.0225, Government Code; and
352	352	(4) Section 151.801(g), Tax Code.
353	353	SECTION 3.06. (a) On August 31, 2035, the Texas moving
354	354	image industry incentive fund established under Section 485.0225,
355	355	Government Code, as added by Article 2 of this Act, is abolished and
356	356	the unencumbered and unspent balance of the fund on that date is
357	357	transferred to the general revenue fund.
358	358	(b) Notwithstanding the changes in law made by this article,
359	359	a grant awarded under Subchapter B, Chapter 485, Government Code,
360	360	on or after September 1, 2025, and before September 1, 2035, is
361	361	governed by that subchapter as amended by Article 2 of this Act and
362	362	any subsequent amendments to that law by the legislature in effect
363	363	on the date the grant is awarded, and that law is continued in
364	364	effect for that purpose.
365	365	(c) A grant awarded under Subchapter B, Chapter 485,
366	366	Government Code, on or after September 1, 2035, is governed by that
367	367	subchapter as amended by this article.
368	368	ARTICLE 4. EFFECTIVE DATE
369	369	SECTION 4.01. Except as otherwise provided by this Act,
370	370	this Act takes effect September 1, 2025.