| 1 | 1 | | 89R17160 BEE-D |
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| 2 | 2 | | By: Garcia of Bexar H.B. No. 5440 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the moving image industry incentive program. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 485.023, Government Code, is amended to |
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| 12 | 12 | | read as follows: |
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| 13 | 13 | | Sec. 485.023. QUALIFICATION. To qualify for a grant under |
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| 14 | 14 | | this subchapter: |
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| 15 | 15 | | (1) a production company must have spent a minimum |
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| 16 | 16 | | of[: |
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| 17 | 17 | | [(A) $250,000 in in-state spending for a film or |
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| 18 | 18 | | television program; or |
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| 19 | 19 | | [(B)] $100,000 in in-state spending for a moving |
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| 20 | 20 | | image project [commercial or series of commercials, an educational |
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| 21 | 21 | | or instructional video or series of educational or instructional |
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| 22 | 22 | | videos, or a digital interactive media production]; |
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| 23 | 23 | | (2) at least 70 [55] percent of the production crew, |
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| 24 | 24 | | actors, and extras for a moving image project must be Texas |
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| 25 | 25 | | residents unless the office determines and certifies in writing |
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| 26 | 26 | | that a sufficient number of qualified crew, actors, and extras are |
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| 27 | 27 | | not available to the company at the time principal photography |
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| 28 | 28 | | begins; |
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| 29 | 29 | | (3) at least 60 percent of the moving image project |
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| 30 | 30 | | must be filmed in Texas; and |
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| 31 | 31 | | (4) a production company must submit to the office an |
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| 32 | 32 | | expended budget, in a format prescribed by the office, that |
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| 33 | 33 | | reflects all in-state spending and includes all receipts, invoices, |
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| 34 | 34 | | pay orders, and other documentation considered necessary by the |
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| 35 | 35 | | office to accurately determine the amount of a production company's |
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| 36 | 36 | | in-state spending that has occurred. |
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| 37 | 37 | | SECTION 2. Section 485.024(a), Government Code, is amended |
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| 38 | 38 | | to read as follows: |
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| 39 | 39 | | (a) Except as provided by Section 485.025, a grant awarded |
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| 40 | 40 | | under this subchapter may not exceed an [the] amount equal to 30 |
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| 41 | 41 | | percent of a production company's eligible in-state spending for |
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| 42 | 42 | | the moving image project [established by office rule]. The office |
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| 43 | 43 | | shall adopt rules prescribing the method the office will use to |
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| 44 | 44 | | calculate the amount of a grant awarded under this subsection. The |
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| 45 | 45 | | office shall publish a written summary of the method for |
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| 46 | 46 | | determining grants before awarding a grant under this section. The |
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| 47 | 47 | | method must consider at a minimum: |
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| 48 | 48 | | (1) the current and likely future effect a moving |
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| 49 | 49 | | image project will have on employment, tourism, and economic |
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| 50 | 50 | | activity in this state; and |
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| 51 | 51 | | (2) the amount of a production company's in-state |
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| 52 | 52 | | spending for a moving image project. |
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| 53 | 53 | | SECTION 3. Section 485.027, Government Code, is amended by |
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| 54 | 54 | | adding Subsection (a-1) to read as follows: |
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| 55 | 55 | | (a-1) A junior college or nonprofit organization |
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| 56 | 56 | | contracting with the office in accordance with Subsection (a) to |
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| 57 | 57 | | create a training program described by that subsection may accept: |
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| 58 | 58 | | (1) money the legislature appropriates to the office |
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| 59 | 59 | | for purposes of this chapter; and |
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| 60 | 60 | | (2) gifts, grants, or donations from any source. |
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| 61 | 61 | | SECTION 4. This Act takes effect September 1, 2025. |
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