Enrolled Bill Summary

House Bill 873	House Author:  Dukes et al.
Effective:  4-23-09	Senate Sponsor:  Deuell et al.

            House Bill 873 amends provisions of the Government Code relating to the moving image industry incentive program. Rather than capping program grants at the lesser of five percent of the total amount of a production company's in-state spending or specified amounts for certain moving image projects, the bill provides that a grant may not exceed the amount established by rule of the Music, Film, Television, and Multimedia Office in the governor's office.  The bill requires the office to adopt rules prescribing the method the office will use to calculate a grant amount, to publish a written summary of the method for determining grants before awarding a grant, and to consider certain minimum criteria in establishing the method.  The office, in calculating a grant amount, may not include wages of a person employed in a production project that exceed $1 million and is allowed to make a grant only from appropriated funds.

            The amount for an additional grant for production in an underutilized and economically distressed area, redefined in the bill as an area receiving less than 15 percent yearly of the total film and television production in Texas or having a median household income not exceeding 75 percent of the state median household income, is increased from 1.25 percent to 2.5 percent of the total amount of the production company's in-state spending for a project.

            To qualify for a grant, a production company is required to have a minimum of $250,000, rather than $1 million, in in-state spending for a film or television program, and the bill adds an educational or instructional video or series of videos and a digital interactive media production to the types of projects required to have a minimum of $100,000 in in-state spending. The bill changes grant qualification requirements to decrease from 80 percent to 60 percent the minimum portion of the moving image project that must be filmed in Texas and to establish an exception to the requirement that at least 70 percent of the production crew, actors, and extras be Texas residents if the office determines and certifies that a sufficient number of qualified crew, actors, and extras are not available at the time principal photography begins.