Texas 2025 - 89th Regular

Texas Senate Bill SB22 Compare Versions

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1		-	By: Huffman, et al. S.B. No. 22
	1	+	By: Huffman, Alvarado, Hagenbuch S.B. No. 22
	2	+	(In the Senate - Filed March 11, 2025; March 12, 2025, read
	3	+	first time and referred to Committee on Finance; April 2, 2025,
	4	+	reported adversely, with favorable Committee Substitute by the
	5	+	following vote: Yeas 11, Nays 0; April 2, 2025, sent to printer.)
	6	+	Click here to see the committee vote
	7	+	COMMITTEE SUBSTITUTE FOR S.B. No. 22 By: Huffman
2	8
3	9
4	10
5	11
6	12		A BILL TO BE ENTITLED
7	13		AN ACT
8	14		relating to the Texas moving image industry incentive program and
9	15		the establishment and funding of the Texas moving image industry
10	16		incentive fund.
11	17		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	18		ARTICLE 1. LEGISLATIVE INTENT
13	19		SECTION 1.01. It is the intent of the legislature that the
14	20		Music, Film, Television, and Multimedia Office is not required to
15	21		act on any grant application and may deny an application because of
16	22		inappropriate content or content that portrays Texas or Texans in a
17	23		negative fashion, as determined by the office, in a moving image
18	24		project and that the office shall consider general standards of
19	25		decency and respect for the diverse beliefs and values of the
20	26		citizens of Texas when determining whether to act on or deny a grant
21	27		application.
22	28		ARTICLE 2. TEXAS MOVING IMAGE INDUSTRY INCENTIVE PROGRAM; FUND
23	29		SECTION 2.01. Section 485.021, Government Code, is amended
24	30		by adding Subdivision (1-a) to read as follows:
25	31		(1-a) "Incentive fund" means the Texas moving image
26	32		industry incentive fund established under Section 485.0225.
27	33		SECTION 2.02. Section 485.022, Government Code, is amended
28	34		by amending Subsections (a) and (f) and adding Subsections (g),
29	35		(h), (i), and (j) to read as follows:
30	36		(a) The office shall administer a grant program for
31	37		production companies that produce moving image projects in this
32	38		state:
33	39		(1) using money from the incentive fund; or
34	40		(2) [,] to the extent that gifts, grants, donations,
35	41		or other money, including appropriations, are made available to the
36	42		office for that purpose.
37	43		(f) The following types of projects are not eligible for
38	44		grants under this subchapter:
39	45		(1) pornography or obscene material, as defined by
40	46		Section 43.21, Penal Code;
41	47		(2) news, current event or public access programming,
42	48		political advertising, including public service announcements that
43	49		advance a public policy or political position, or programs that
44	50		include weather or market reports;
45	51		(3) local events or religious services;
46	52		(4) productions not intended for commercial,
47	53		educational, or instructional distribution;
48	54		(5) sporting events or activities;
49	55		(6) awards shows, galas, or telethons and similar
50	56		programs that solicit funds;
51	57		(7) projects intended for undergraduate or graduate
52	58		course credit;
53	59		(8) application software, system software, or
54	60		middleware;
55	61		(9) casino-type video games and interactive digital
56	62		media experiences used in a gambling device, as defined by Section
57	63		47.01, Penal Code; or
58	64		(10) commercials or advertising for this state or any
59	65		agency or department of this state.
60	66		(g) Subsection (f) is not an exclusive list of the types of
61	67		projects that are ineligible for a grant under this subchapter. The
62	68		office has broad authority to:
63	69		(1) designate other types of projects as ineligible
64	70		for a grant;
65	71		(2) elect not to take action on a grant application;
66	72		(3) deny a grant application; or
67	73		(4) award a grant.
68	74		(h) As part of the preliminary application process [Before a
69	75		grant is awarded under this subchapter], the office shall review
70	76		the proposed content of a moving image project in the manner
71	77		provided by office rule and advise the prospective applicant
72	78		whether the content will preclude the project from receiving a
73	79		grant under this subchapter.
74	80		(i) Once an approved project has been completed, the office
75	81		shall review the final content before issuing the grant payment
76	82		to[:
77	83		[(1) require a copy of the final script; and
78	84		[(2)] determine if any substantial changes occurred
79	85		during production on a moving image project to include content
80	86		described by Subsection (e) or (f).
81	87		(j) The office has broad discretion to rescind preliminary
82	88		approval at any point in the grant process.
83	89		SECTION 2.03. Subchapter B, Chapter 485, Government Code,
84	90		is amended by adding Section 485.0225 to read as follows:
85	91		Sec. 485.0225. TEXAS MOVING IMAGE INDUSTRY INCENTIVE FUND.
86	92		(a) In this section, "trust company" means the Texas Treasury
87	93		Safekeeping Trust Company.
88	94		(b) The Texas moving image industry incentive fund is
89	95		established as a fund outside the state treasury to be held and
90	96		invested by the trust company and administered by the office.
91	97		(c) Money in the incentive fund may be spent without
92	98		legislative appropriation and may be used only for the purposes of
93	99		awarding grants under this subchapter and paying the trust
94	100		company's expenses of managing the incentive fund's assets.
95	101		(d) The incentive fund consists of:
96	102		(1) money appropriated, transferred, or deposited to
97	103		the credit of the incentive fund by the legislature;
98	104		(2) money, including the proceeds of a fee or tax
99	105		imposed by this state, that by statute is dedicated for deposit to
100	106		the credit of the incentive fund;
101	107		(3) investment earnings and interest earned on amounts
102	108		credited to the incentive fund; and
103	109		(4) gifts, grants, and donations made to the office
104	110		and deposited to the credit of the incentive fund.
105	111		(e) The trust company shall hold and invest the incentive
106	112		fund. The incentive fund may be invested with the state treasury
107	113		pool and may be pooled with other state assets for purposes of
108	114		investment.
109	115		(f) The overall objective for the investment of the
110	116		incentive fund is to maintain sufficient liquidity to meet the
111	117		needs of the incentive fund while striving to preserve the
112	118		purchasing power of the incentive fund over a full economic cycle.
113	119		(g) The trust company may acquire, exchange, sell,
114	120		supervise, manage, or retain any kind of investment that a prudent
115	121		investor, exercising reasonable care, skill, and caution, would
116	122		acquire or retain in light of the purposes, terms, distribution
117	123		requirements, and other circumstances of the incentive fund then
118	124		prevailing, taking into consideration the investment of all the
119	125		assets of the incentive fund rather than a single investment.
120	126		(h) The expenses of managing the incentive fund's assets
121	127		shall be paid from the incentive fund.
122	128		(i) The office annually shall provide to the trust company a
123	129		forecast of the cash flows into and out of the incentive fund. The
124	130		office shall provide updates to the forecast as appropriate to
125	131		ensure the trust company is able to achieve the objective specified
126	132		by Subsection (f).
127	133		(j) The trust company shall disburse money from the
128	134		incentive fund as directed by the office.
129	135		SECTION 2.04. Section 485.023, Government Code, is amended
130	136		to read as follows:
131	137		Sec. 485.023. QUALIFICATION. To qualify for a grant under
132	138		this subchapter:
133	139		(1) a production company must have spent a minimum of:
134	140		(A) $250,000 in in-state spending for a film or
135	141		television program; or
136	142		(B) $100,000 in in-state spending for a
137	143		commercial or series of commercials, an educational or
138	144		instructional video or series of educational or instructional
139	145		videos, or a digital interactive media production;
140	146		(2) [at least 55 percent of the production crew,
141	147		actors, and extras for a moving image project must be Texas
142	148		residents] unless the office determines and certifies in writing
143	149		that a sufficient number of qualified crew, actors, and extras are
144	150		not available to the company at the time principal photography
145	151		begins, the percentage of the production crew, actors, and extras
146	152		for a moving image project who are Texas residents must be at least:
147	153		(A) 35 percent for a moving image project that
148	154		begins principal photography on or after September 1, 2025, and
149	155		before September 1, 2027;
150	156		(B) 40 percent for a moving image project that
151	157		begins principal photography on or after September 1, 2027, and
152	158		before September 1, 2029;
153	159		(C) 45 percent for a moving image project that
154	160		begins principal photography on or after September 1, 2029, and
155	161		before September 1, 2031; and
156	162		(D) 50 percent for a moving image project that
157	163		begins principal photography on or after September 1, 2031;
158	164		(3) at least 60 percent of the moving image project
159	165		must be filmed in Texas; and
160	166		(4) a production company must submit to the office an
161	167		expended budget, in a format prescribed by the office, that
162	168		reflects all in-state spending and includes all receipts, invoices,
163	169		pay orders, and other documentation considered necessary by the
164	170		office to accurately determine the amount of a production company's
165	171		in-state spending that has occurred.
166	172		SECTION 2.05. Sections 485.024(a) and (c), Government Code,
167	173		are amended to read as follows:
168	174		(a) Except as provided by Section 485.025, for a moving
169	175		image project that is:
170	176		(1) a feature film, a television program other than a
171	177		reality television program, or a visual effects project for a
172	178		feature film or television program other than a reality television
173	179		program with total in-state spending of:
174	180		(A) at least $250,000 but less than $1 million,
175	181		the amount of a grant under this subchapter is equal to five percent
176	182		of total in-state spending for the project;
177	183		(B) at least $1 million but less than $1.5
178	184		million, the amount of a grant under this subchapter is equal to 10
179	185		percent of total in-state spending for the project; or
180	186		(C) at least $1.5 million, the amount of a grant
181	187		under this subchapter is equal to 25 percent of total in-state
182	188		spending for the project;
183	189		(2) a digital interactive media production with total
184	190		in-state spending of:
185	191		(A) at least $100,000 but less than $1 million,
186	192		the amount of a grant under this subchapter is equal to five percent
187	193		of total in-state spending for the project;
188	194		(B) at least $1 million but less than $1.5
189	195		million, the amount of a grant under this subchapter is equal to 10
190	196		percent of total in-state spending for the project; or
191	197		(C) at least $1.5 million, the amount of a grant
192	198		under this subchapter is equal to 25 percent of total in-state
193	199		spending for the project;
194	200		(3) a reality television program as defined by office
195	201		rule with total in-state spending of:
196	202		(A) at least $250,000 but less than $1 million,
197	203		the amount of a grant under this subchapter is equal to five percent
198	204		of total in-state spending for the project; or
199	205		(B) at least $1 million, the amount of a grant
200	206		under this subchapter is equal to 10 percent of total in-state
201	207		spending for the project; or
202	208		(4) a commercial, a series of commercials, an
203	209		educational or instructional video, a series of educational or
204	210		instructional videos, or a visual effects project for a commercial,
205	211		series of commercials, educational or instructional video, or
206	212		series of educational or instructional videos with total in-state
207	213		spending of:
208	214		(A) at least $100,000 but less than $1 million,
209	215		the amount of a grant under this subchapter is equal to five percent
210	216		of total in-state spending for the project; or
211	217		(B) at least $1 million, the amount of a grant
212	218		under this subchapter is equal to 10 percent of total in-state
213	219		spending for the project [may not exceed the amount established by
214	220		office rule. The office shall adopt rules prescribing the method
215	221		the office will use to calculate the amount of a grant under this
216	222		subsection. The office shall publish a written summary of the
217	223		method for determining grants before awarding a grant under this
218	224		section. The method must consider at a minimum:
219	225		[(1) the current and likely future effect a moving
220	226		image project will have on employment, tourism, and economic
221	227		activity in this state; and
222	228		[(2) the amount of a production company's in-state
223	229		spending for a moving image project].
224	230		(c) The office may [only] make a grant from the incentive
225	231		fund or appropriated funds.
226	232		SECTION 2.06. Section 485.025, Government Code, is amended
227	233		to read as follows:
228	234		Sec. 485.025. ADDITIONAL GRANTS [GRANT] FOR CERTAIN
229	235		PROJECTS [UNDERUTILIZED AND ECONOMICALLY DISTRESSED AREAS]. (a)
230	236		In addition to the grant calculated under Section 485.024, a
231	237		production company is eligible for:
232	238		(1) a Texas heritage grant in an amount equal to 2.5
233	239		percent of total in-state spending for a moving image project that
234	240		qualifies under Subsection (b);
235	241		(2) a rural filming grant in an amount equal to 2.5
236	242		percent of total in-state spending for a moving image project that
237	243		qualifies under Subsection (c);
238	244		(3) a postproduction grant in an amount equal to one
239	245		percent of total in-state spending for a moving image project that
240		-	qualifies under Subsection (d);
	246	+	qualifies under Subsection (d); or
241	247		(4) a Texas veterans grant in an amount equal to 2.5
242	248		percent of total in-state spending for a moving image project that
243		-	qualifies under Subsection (e); or
244		-	(5) a faith-based moving image project grant in an
245		-	amount equal to 2.5 percent of total in-state spending for a moving
246		-	image project that qualifies under Subsection (f).
	249	+	qualifies under Subsection (e).
247	250		(b) A moving image project qualifies for a Texas heritage
248	251		grant under Subsection (a)(1) if the project is designated by the
249	252		office as a Texas heritage project according to rules adopted by the
250	253		office. The office is not required to designate any moving image
251	254		project as a Texas heritage project and has sole discretion to make
252	255		that designation. In determining whether to designate a moving
253	256		image project as a Texas heritage project, the office shall
254	257		consider:
255	258		(1) the project's current and likely future effect on
256	259		the promotion of family values; or
257	260		(2) whether the project portrays Texas and Texans in a
258	261		positive fashion.
259	262		(c) A moving image project qualifies for a rural filming
260	263		grant under Subsection (a)(2) if the production company spends at
261	264		least 35 percent of the project's filming days or man hours, as
262	265		applicable and as defined by office rule, in a county in this state
263	266		with a population of 300,000 or less.
264	267		(d) A moving image project qualifies for a postproduction
265	268		grant under Subsection (a)(3) if at least 25 percent of the total
266	269		in-state spending for the project is spent by the production
267	270		company during postproduction on eligible expenditures as provided
268	271		by office rule, including expenditures for labor, vendor, and music
269	272		costs.
270	273		(e) A moving image project qualifies for a Texas veterans
271	274		grant under Subsection (a)(4) if at least five percent of the
272	275		production crew, actors, and extras for the project are Texas
273	276		residents who served in and were honorably discharged from:
274	277		(1) the army, navy, air force, coast guard, or marine
275	278		corps of the United States;
276	279		(2) the Texas National Guard as defined by Section
277	280		431.001; or
278	281		(3) a reserve component of an entity listed in
279	282		Subdivision (1) or (2).
280		-	(f) A moving image project qualifies for a faith-based
281		-	moving image project grant under Subsection (a)(5) if the project
282		-	is designated by the office as a faith-based moving image project
283		-	according to rules adopted by the office. The office is not
284		-	required to designate any moving image project as a faith-based
285		-	moving image project and has sole discretion to make that
286		-	designation.
287		-	(g) A moving image project may qualify for and receive more
	283	+	(f) A moving image project may qualify for and receive more
288	284		than one additional grant under Subsection (a). However, the total
289	285		amount of all grants received by a moving image project may not
290	286		exceed 31 percent of the total in-state spending for the project
291	287		[that spends at least 25 percent of a moving image project's filming
292	288		days in an underutilized and economically distressed area is
293	289		eligible for an additional grant in an amount equal to 2.5 percent
294	290		of the total amount of the production company's in-state spending
295	291		for the moving image project].
296	292		SECTION 2.07. Section 151.801, Tax Code, is amended by
297	293		amending Subsection (a) and adding Subsection (g) to read as
298	294		follows:
299	295		(a) Except for [the] amounts otherwise allocated under this
300	296		section [Subsections (b), (c), (c-2), (c-3), and (f)], all proceeds
301	297		from the collection of the taxes imposed by this chapter shall be
302	298		deposited to the credit of the general revenue fund.
303	299		(g) Not later than the 30th day of each state fiscal
304	300		biennium, the comptroller shall deposit to the credit of the Texas
305	301		moving image industry incentive fund established under Section
306	302		485.0225, Government Code, $500 million of the proceeds from the
307	303		collection of the taxes imposed by this chapter.
308	304		SECTION 2.08. (a) The Music, Film, Television, and
309	305		Multimedia Office shall adopt rules necessary to implement and
310	306		administer Subchapter B, Chapter 485, Government Code, as amended
311	307		by this article.
312	308		(b) The comptroller of public accounts may adopt rules
313	309		necessary to implement and administer Section 485.0225, Government
314	310		Code, as added by this article.
315	311		ARTICLE 3. SUNSET PROVISIONS
316	312		SECTION 3.01. Effective September 1, 2035, Sections
317	313		485.022(a) and (f), Government Code, are amended to read as
318	314		follows:
319	315		(a) The office shall administer a grant program for
320	316		production companies that produce moving image projects in this
321	317		state, to the extent that gifts, grants, donations, or other money,
322	318		including appropriations, are made available to the office for that
323	319		purpose.
324	320		(f) Before a grant is awarded under this subchapter, the
325	321		office shall:
326	322		(1) require a copy of the final script; and
327	323		(2) determine if any substantial changes occurred
328	324		during production on a moving image project to include content
329	325		described by Subsection (e).
330	326		SECTION 3.02. Effective September 1, 2035, Section 485.023,
331	327		Government Code, is amended to read as follows:
332	328		Sec. 485.023. QUALIFICATION. To qualify for a grant under
333	329		this subchapter:
334	330		(1) a production company must have spent a minimum of:
335	331		(A) $250,000 in in-state spending for a film or
336	332		television program; or
337	333		(B) $100,000 in in-state spending for a
338	334		commercial or series of commercials, an educational or
339	335		instructional video or series of educational or instructional
340	336		videos, or a digital interactive media production;
341	337		(2) at least 55 percent of the production crew,
342	338		actors, and extras for a moving image project must be Texas
343	339		residents unless the office determines and certifies in writing
344	340		that a sufficient number of qualified crew, actors, and extras are
345	341		not available to the company at the time principal photography
346	342		begins;
347	343		(3) at least 60 percent of the moving image project
348	344		must be filmed in Texas; and
349	345		(4) a production company must submit to the office an
350	346		expended budget, in a format prescribed by the office, that
351	347		reflects all in-state spending and includes all receipts, invoices,
352	348		pay orders, and other documentation considered necessary by the
353	349		office to accurately determine the amount of a production company's
354	350		in-state spending that has occurred.
355	351		SECTION 3.03. Effective September 1, 2035, Sections
356	352		485.024(a) and (c), Government Code, are amended to read as
357	353		follows:
358	354		(a) Except as provided by Section 485.025, a grant under
359	355		this subchapter may not exceed the amount established by office
360	356		rule. The office shall adopt rules prescribing the method the
361	357		office will use to calculate the amount of a grant under this
362	358		subsection. The office shall publish a written summary of the
363	359		method for determining grants before awarding a grant under this
364	360		section. The method must consider at a minimum:
365	361		(1) the current and likely future effect a moving
366	362		image project will have on employment, tourism, and economic
367	363		activity in this state; and
368	364		(2) the amount of a production company's in-state
369	365		spending for a moving image project.
370	366		(c) The office may only make a grant from appropriated
371	367		funds.
372	368		SECTION 3.04. Effective September 1, 2035, Section 485.025,
373	369		Government Code, is amended to read as follows:
374	370		Sec. 485.025. ADDITIONAL GRANT FOR UNDERUTILIZED AND
375	371		ECONOMICALLY DISTRESSED AREAS. In addition to the grant calculated
376	372		under Section 485.024, a production company that spends at least 25
377	373		percent of a moving image project's filming days in an
378	374		underutilized and economically distressed area is eligible for an
379	375		additional grant in an amount equal to 2.5 percent of the total
380	376		amount of the production company's in-state spending for the moving
381	377		image project.
382	378		SECTION 3.05. The following provisions added by Article 2
383	379		of this Act expire on August 31, 2035:
384	380		(1) Section 485.021(1-a), Government Code;
385	381		(2) Sections 485.022(g), (h), (i), and (j), Government
386	382		Code;
387	383		(3) Section 485.0225, Government Code; and
388	384		(4) Section 151.801(g), Tax Code.
389	385		SECTION 3.06. (a) On August 31, 2035, the Texas moving
390	386		image industry incentive fund established under Section 485.0225,
391	387		Government Code, as added by Article 2 of this Act, is abolished and
392	388		the unencumbered and unspent balance of the fund on that date is
393	389		transferred to the general revenue fund.
394	390		(b) Notwithstanding the changes in law made by this article,
395	391		a grant awarded under Subchapter B, Chapter 485, Government Code,
396	392		on or after September 1, 2025, and before September 1, 2035, is
397	393		governed by that subchapter as amended by Article 2 of this Act and
398	394		any subsequent amendments to that law by the legislature in effect
399	395		on the date the grant is awarded, and that law is continued in
400	396		effect for that purpose.
401	397		(c) A grant awarded under Subchapter B, Chapter 485,
402	398		Government Code, on or after September 1, 2035, is governed by that
403	399		subchapter as amended by this article.
404	400		ARTICLE 4. EFFECTIVE DATE
405	401		SECTION 4.01. Except as otherwise provided by this Act,
406	402		this Act takes effect September 1, 2025.
	403	+	* * * * *