By: Carona, Zaffirini S.B. No. 1142
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a film industry incentive program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 485.001 through 485.007, Government
Code, are designated as Subchapter A, Chapter 485, Government Code,
and a subchapter heading is added to read as follows:
SUBCHAPTER A. GENERAL PROVISIONS
SECTION 2. Chapter 485, Government Code, is amended by
adding Subchapter B to read as follows:
SUBCHAPTER B. FILM INDUSTRY INCENTIVE PROGRAM
Sec. 485.021. DEFINITIONS. In this subchapter:
(1) "Filmed entertainment" means a visual and sound
production, including a:
(A) film;
(B) television program; or
(C) national or multistate commercial.
(2) "Production company" includes a film production
company, television production company, or film and television
production company.
(3) "Texas resident" means an individual who has
resided in Texas since the 60th day before the first day of
principal photography on a filmed entertainment.
(4) "Underused area" includes any area of this state
other than the metropolitan areas of Austin, Houston, or
Dallas-Fort Worth.
Sec. 485.022. FILM INDUSTRY INCENTIVE PROGRAM. (a) The
office shall administer a grant program for production companies
that produce filmed entertainments in this state, to the extent
that gifts, grants, donations, or other money, including
appropriations, are made available to the office for that purpose.
(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(3) can be proved; and
(2) requirements for the submission, before
production of a filmed entertainment begins, of an estimate of
total wages that will be paid to Texas residents.
(c) The office may accept gifts, grants, and donations for
the purpose of implementing this subchapter.
Sec. 485.023. QUALIFICATION. To qualify for a grant under
this subchapter, a production company must pay a minimum of:
(1) $500,000 in wages to Texas residents for a film or
television program; or
(2) $50,000 in wages to Texas residents for a
commercial or series of commercials.
Sec. 485.024. GRANT. (a) Except as provided by Section
485.025, a grant under this subchapter may not exceed the lesser of:
(1) 20 percent of the wages paid to Texas residents for
a filmed entertainment; or
(2) $750,000.
(b) In calculating a grant amount under Subsection (a), the
office may not include wages of persons, including an actor or
director, employed in the production of a filmed entertainment that
are:
(1) a major part of the production costs of the
entertainment, as determined by the office; and
(2) negotiated or spent before production begins.
Sec. 485.025. ADDITIONAL GRANT FOR UNDERUSED AREAS. In
addition to the grant calculated under Section 485.024, a
production company that spends at least 25 percent of a filmed
entertainment's filming days in an underused area is eligible for
an additional grant in an amount equal to five percent of the wages
paid to Texas residents for the filmed entertainment.
Sec. 485.026. STATE DEBT. If a production company owes
money to the state at the time the production company is awarded a
grant under this subchapter, the office shall offset the amount
owed to the state from the amount awarded.
SECTION 3. This Act takes effect September 1, 2005.