TO: | Honorable Harvey Hilderbran, Chair, House Committee on Culture, Recreation, & Tourism |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | HB2954 by Hamric (Relating to the creation of a film indistry incentive program. ), Committee Report 1st House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | ($15,000,000) |
2007 | ($15,000,000) |
2008 | $0 |
2009 | $0 |
2010 | $0 |
Fiscal Year | Probable (Cost) from GENERAL REVENUE FUND 1 |
---|---|
2006 | ($15,000,000) |
2007 | ($15,000,000) |
2008 | $0 |
2009 | $0 |
2010 | $0 |
The bill requires the Music, Film, Television, and Multimedia Office within the Office of the Governor to administer a grant program for production companies that produce films, television programs, or commercials in Texas. The bill requires the music office to develop a procedure for the submission of grant applications and the awarding of grants.
The bill provides that revenue generated from one-half of one percent of the hotel occupancy tax rate be allocated to general revenue (estimated to be $21,428,167 in fiscal year 2006 and $22,357,083 in fiscal year 2007) and that $10 million be used for activities of the Governor's Office Tourism Division and $20 million for funding the film industry incentive program. The bill dedicates a stream of revenue for a specific purpose, therefore a $30 million cost to the state is anticipated.
To implement the requirements of the bill, the Governor's office indicates the need for two additional FTEs and associated expenses totaling $86,946 in fiscal 2006 and $83,946 in fiscal 2007. These costs are not reflected in the above table and are assumed to be covered by the dedicated revenue.
The legislation would create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. Therefore, the fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Source Agencies: | 301 Office of the Governor, 304 Comptroller of Public Accounts
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LBB Staff: | JOB, WK, SD, JRO, MS, SMi
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