By: Carona S.B. No. 1142
(In the Senate - Filed March 8, 2005; March 21, 2005, read
first time and referred to Subcommittee on Emerging Technologies
and Economic Development; April 11, 2005, reported adversely, with
favorable Committee Substitute to Committee on Business and
Commerce; April 22, 2005, reported adversely, with favorable
Committee Substitute from Committee on Business and Commerce by the
following vote: Yeas 6, Nays 0; April 22, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1142 By: Brimer
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a film industry incentive program and
the promotion of state tourism.
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.
(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.
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. Section 156.251, Tax Code, is amended by adding
Subsections (e) and (f) to read as follows:
(e) In addition to the revenue allocated under Subsection
(d), an amount equal to the amount of revenue derived from the
collection of taxes imposed by this chapter at a rate of one-half of
one percent shall be allocated in the general revenue fund as
follows:
(1) an amount not to exceed $10 million may be used
only for the activities of the tourism division of the Texas
Economic Development and Tourism Office; and
(2) an amount not to exceed $20 million may be used
only for the promotion and funding of the film industry incentive
program by the Music, Film, Television, and Multimedia Office.
(f) This subsection and Subsection (e) expire August 31,
2007.
SECTION 4. This Act takes effect September 1, 2005.
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