89R17160 BEE-D By: Garcia of Bexar H.B. No. 5440 A BILL TO BE ENTITLED AN ACT relating to the moving image industry incentive program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 485.023, Government Code, is amended to read as follows: Sec. 485.023. QUALIFICATION. To qualify for a grant under this subchapter: (1) a production company must have spent a minimum of[: [(A) $250,000 in in-state spending for a film or television program; or [(B)] $100,000 in in-state spending for a moving image project [commercial or series of commercials, an educational or instructional video or series of educational or instructional videos, or a digital interactive media production]; (2) at least 70 [55] percent of the production crew, actors, and extras for a moving image project must be Texas residents unless the office determines and certifies in writing that a sufficient number of qualified crew, actors, and extras are not available to the company at the time principal photography begins; (3) at least 60 percent of the moving image project must be filmed in Texas; and (4) a production company must submit to the office an expended budget, in a format prescribed by the office, that reflects all in-state spending and includes all receipts, invoices, pay orders, and other documentation considered necessary by the office to accurately determine the amount of a production company's in-state spending that has occurred. SECTION 2. Section 485.024(a), Government Code, is amended to read as follows: (a) Except as provided by Section 485.025, a grant awarded under this subchapter may not exceed an [the] amount equal to 30 percent of a production company's eligible in-state spending for the moving image project [established by office rule]. The office shall adopt rules prescribing the method the office will use to calculate the amount of a grant awarded under this subsection. The office shall publish a written summary of the method for determining grants before awarding a grant under this section. The method must consider at a minimum: (1) the current and likely future effect a moving image project will have on employment, tourism, and economic activity in this state; and (2) the amount of a production company's in-state spending for a moving image project. SECTION 3. Section 485.027, Government Code, is amended by adding Subsection (a-1) to read as follows: (a-1) A junior college or nonprofit organization contracting with the office in accordance with Subsection (a) to create a training program described by that subsection may accept: (1) money the legislature appropriates to the office for purposes of this chapter; and (2) gifts, grants, or donations from any source. SECTION 4. This Act takes effect September 1, 2025.