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A BILL TO BE ENTITLED
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AN ACT
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relating to incentives for the moving image industry in this state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 485.021(1), Government Code, is amended |
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to read as follows: |
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(1) "In-state spending" means the amount of money |
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spent in Texas by a production company during the production and |
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completion of a moving image project, including the amount spent on |
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wages [to Texas residents]. The term does not include wages |
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described by Section 485.024(b). |
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SECTION 2. Section 485.022(b), Government Code, is amended |
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to read as follows: |
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(b) The office shall develop a procedure for the submission |
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of grant applications and the awarding of grants under this |
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subchapter. The procedure must include provisions relating to[: |
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[(1) methods by which an individual's Texas residency |
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as described by Section 485.021(4) can be proved; and |
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[(2)] requirements for the submission, before |
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production of a moving image project begins, of: |
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(1) [(A)] an estimate of total in-state spending; |
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(2) [(B)] the shooting script or story board, as |
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applicable; |
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(3) [(C)] the estimated number of jobs for cast and |
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production crew during the production and completion of a moving |
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image project; and |
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(4) [(D)] any other information considered useful and |
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necessary by the office for an adequate and accurate analysis of a |
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production company's in-state spending. |
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SECTION 3. Section 485.023, Government Code, is amended to |
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read as follows: |
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Sec. 485.023. QUALIFICATION. To qualify for a grant under |
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this subchapter: |
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(1) a production company must have spent a minimum of: |
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(A) $250,000 in in-state spending for a film or |
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television program; or |
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(B) $100,000 in in-state spending for a |
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commercial or series of commercials, an educational or |
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instructional video or series of educational or instructional |
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videos, or a digital interactive media production; |
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(2) [at least 70 percent of the production crew, |
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actors, and extras for a moving image project must be Texas |
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residents unless the office determines and certifies in writing |
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that a sufficient number of qualified crew, actors, and extras are |
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not available to the company at the time principal photography |
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begins; |
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[(3)] at least 60 percent of the moving image project |
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must be filmed in Texas; and |
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(3) [(4)] a production company must submit to the |
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office an expended budget, in a format prescribed by the office, |
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that reflects all in-state spending and includes all receipts, |
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invoices, pay orders, and other documentation considered necessary |
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by the office to accurately determine the amount of a production |
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company's in-state spending that has occurred. |
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SECTION 4. Sections 485.024(a) and (b), Government Code, |
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are amended to read as follows: |
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(a) Except as provided by Section 485.025, a grant under |
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this subchapter for a moving image project may not be less than 20 |
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percent of the total amount of the production company's in-state |
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spending on the project [exceed the amount established by office |
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rule]. The office shall adopt rules prescribing the method the |
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office will use to calculate the amount of a grant under this |
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subsection. The office shall publish a written summary of the |
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method for determining grants before awarding a grant under this |
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section. The method must consider at a minimum: |
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(1) the current and likely future effect a moving |
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image project will have on employment, tourism, and economic |
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activity in this state; and |
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(2) the amount of a production company's in-state |
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spending for a moving image project. |
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(b) In calculating a grant amount under Section 485.025 or |
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the amount of in-state spending for purposes of rules adopted under |
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Subsection (a), the office may not include wages of persons, |
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including an actor or director, employed in the production of a |
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moving image project that exceed $500,000 [$1 million]. |
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SECTION 5. Section 485.025, Government Code, is amended to |
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read as follows: |
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Sec. 485.025. ADDITIONAL GRANT FOR UNDERUTILIZED AND |
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ECONOMICALLY DISTRESSED AREAS. In addition to the grant calculated |
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under Section 485.024, a production company that spends at least 25 |
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percent of a moving image project's filming days in an |
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underutilized and economically distressed area is eligible for an |
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additional grant in an amount equal to 10 [2.5] percent of the total |
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amount of the production company's in-state spending for the moving |
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image project. |
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SECTION 6. Section 485.021(4), Government Code, is |
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repealed. |
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SECTION 7. The changes in law made by this Act to Chapter |
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485, Government Code, apply only to a grant awarded on or after the |
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effective date of this Act. A grant awarded before the effective |
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date of this Act is governed by the law in effect on the date the |
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award was made, and the former law is continued in effect for that |
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purpose. |
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SECTION 8. This Act takes effect September 1, 2023. |