BILL ANALYSIS



S.B. 1677
By: Barrientos (B. Hunter)
May 20, 1995
Committee Report (Amended)


BACKGROUND

Texas, particularly central Texas, has become a popular region for
the location and production of motion pictures and television. 
However, much of the work on motion pictures is done on sound
stages, as is production of interactive videos for the computer
market.  This work is primarily performed in California or at newer
facilities in North Carolina and Florida.  A North Carolina
facility was built in part through incentives offered by the state. 
Because Austin has many video game producers and high tech
companies, the potential for a successful sound stage facility
could bring enormous economic growth to the state.  The economic
development potential around a sound stage is significant, both by
increasing the value of state land and provide a potential revenue
stream to participating state agencies.

PURPOSE

As proposed, S.B. 1677 sets forth requirements for the Texas
Commission on the Arts to conduct a study to determine the
feasibility of constructing and operating a motion-picture
soundstage facility on state-owned real property and authorizes the
construction if it is feasible. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 444B, Government Code, by adding Section
444.029, as follows:

     Sec. 444.029. MOTION-PICTURE SOUNDSTAGE FACILITY. (a) Requires
     the Texas Commission on the Arts (commission) to contract with
     a private entity, after consulting with the governor's Music,
     Film, Television, and Multimedia Office, to conduct a study to
     determine the feasibility of constructing and operating a
     motion-picture soundstage facility on state-owned real
     property in Travis or Williamson County, or any other state-owned property in other counties.
     
     (b) Requires the commission to issue requests for proposals
       for conducting the study not later than November 1, 1995. 
       Requires the study to be completed by July 31, 1996.
       
       (c) Sets forth requirements for the study's contents.
       
       (d) Requires the commission, on completion of the study, to
       propose a project plan for construction, ownership, and
       management of the facility if the commission determines that
       a project to construct and own the facility is feasible. 
       Requires the commission to submit the plan to the
       Legislative Budget Board (LBB) by September 1, 1996.  Sets
       forth requirements for the plan.  
       
       (e) Authorizes the commission to execute contracts with
       other governmental entities to share the costs, revenues,
       and ownership of the facility and private entities for the
       construction or management of the facility, if the LBB gives
       its prior approval to the expenditure of money appropriated
       to the commission for the purpose of constructing the
       facility and related project expenses, the comptroller
       certifies that sufficient funds are available, and the
       governor does not disapprove the action of the LBB within 14
       days of its action.
       
       (f) Requires the commission and other facility owners to
       manage the facility through a contract with a private
       entity.  Requires the contract to be awarded in accordance
       with state procurement laws.
       
       (g) Provides that charge and control of the real property
       selected by the commission for the facility site in the plan
       submitted to the LBB is transferred to the commission on
       approval of the expenditure of the money appropriated to the
       commission by the LBB.  Authorizes the commission to share
       title to the facility and other improvements on the facility
       site related to the construction with the other owners of
       the facility.
       
       (h) Requires any revenues received by the commission not
       appropriated for the administration of this section to be
       deposited to the credit of the Texas cultural endowment
       fund.  Authorizes any revenues received by another state
       agency to be used by the agency for its costs related to the
       administration of this section or for other costs related to
       the operation of the agency.
SECTION 2. Effective date: September 1, 1995.

SECTION 3. Emergency clause.

EXPLANATION OF AMENDMENTS

Committee Amendment #1 specifies that the commission may only use
appropriated funds to contract the study.  Also requires the
commission to work in conjunction with the Texas Department of
Commerce.

Committee Amendment #2 deletes "in Travis or Williamson County."

Committee Amendment # 3 deletes page four of the bill.

SUMMARY OF COMMITTEE ACTION

SB 1677 was considered by the Committee on State Affairs in a
formal meeting on May 19, 1995.  The Chair laid out SB 1677 and
recognized Rep. B. Hunter to explain the bill.  The committee
considered two amendments to the bill which were adopted without
objection.  The Chair recognized Rep. B. Hunter to close.  SB 1677
was left pending.  SB 1677 was considered by the Committee on State
Affairs in a separate formal meeting on May 19, 1995.  The
committee considered one amendment to the bill which was adopted
without objection.  SB 1677 The bill was reported favorably as
amended, with the recommendation that it do pass and be printed, by
a record vote of: 9 ayes; 0 nays; 1 pnv; and 5 absent.