88R13064 LRM-D
 
  By: Miles S.B. No. 1460
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to incentives for the moving image industry in this state.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 485.021(1), Government Code, is amended
  to read as follows:
               (1)  "In-state spending" means the amount of money
  spent in Texas by a production company during the production and
  completion of a moving image project, including the amount spent on
  wages [to Texas residents]. The term does not include wages
  described by Section 485.024(b).
         SECTION 2.  Section 485.022(b), Government Code, is amended
  to read as follows:
         (b)  The office shall develop a procedure for the submission
  of grant applications and the awarding of grants under this
  subchapter. The procedure must include provisions relating to[:
               [(1) methods by which an individual's Texas residency
  as described by Section 485.021(4) can be proved; and
               [(2)] requirements for the submission, before
  production of a moving image project begins, of:
               (1) [(A)]  an estimate of total in-state spending;
               (2) [(B)]  the shooting script or story board, as
  applicable;
               (3) [(C)]  the estimated number of jobs for cast and
  production crew during the production and completion of a moving
  image project; and
               (4) [(D)]  any other information considered useful and
  necessary by the office for an adequate and accurate analysis of a
  production company's in-state spending.
         SECTION 3.  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
  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 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
               (3) [(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 4.  Sections 485.024(a) and (b), Government Code,
  are amended to read as follows:
         (a)  Except as provided by Section 485.025, a grant under
  this subchapter for a moving image project may not be less than 20
  percent of the total amount of the production company's in-state
  spending on the project [exceed the amount established by office
  rule].  The office shall adopt rules prescribing the method the
  office will use to calculate the amount of a grant 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.
         (b)  In calculating a grant amount under Section 485.025 or
  the amount of in-state spending for purposes of rules adopted under
  Subsection (a), the office may not include wages of persons,
  including an actor or director, employed in the production of a
  moving image project that exceed $500,000 [$1 million].
         SECTION 5.  Section 485.025, Government Code, is amended to
  read as follows:
         Sec. 485.025.  ADDITIONAL GRANT FOR UNDERUTILIZED AND
  ECONOMICALLY DISTRESSED AREAS. In addition to the grant calculated
  under Section 485.024, a production company that spends at least 25
  percent of a moving image project's filming days in an
  underutilized and economically distressed area is eligible for an
  additional grant in an amount equal to 10 [2.5] percent of the total
  amount of the production company's in-state spending for the moving
  image project.
         SECTION 6.  Section 485.021(4), Government Code, is
  repealed.
         SECTION 7.  The changes in law made by this Act to Chapter
  485, Government Code, apply only to a grant awarded on or after the
  effective date of this Act. A grant awarded before the effective
  date of this Act is governed by the law in effect on the date the
  award was made, and the former law is continued in effect for that
  purpose.
         SECTION 8.  This Act takes effect September 1, 2023.