87R4717 MTB-D
 
  By: Gervin-Hawkins H.B. No. 2417
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to incentives for the moving image industry in this state.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 485.021(1), Government Code, is amended
  to read as follows:
               (1)  "In-state spending" means the amount of money
  spent in Texas by a production company during the production and
  completion of a moving image project, including the amount spent on
  wages [to Texas residents. The term does not include wages
  described by Section 485.024(b)].
         SECTION 2.  Section 485.022, Government Code, is amended by
  amending Subsection (b) and adding Subsection (g) to read as
  follows:
         (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(4) can be proved; and
               [(2)]  requirements for the submission, before
  production of a moving image project begins, of:
               (1) [(A)]  an estimate of total in-state spending;
               (2) [(B)]  the shooting script or story board, as
  applicable;
               (3) [(C)]  the estimated number of jobs for cast and
  production crew during the production and completion of a moving
  image project; and
               (4) [(D)]  any other information considered useful and
  necessary by the office for an adequate and accurate analysis of a
  production company's in-state spending.
         (g)  Notwithstanding Subsection (b), a production company is
  eligible for a grant under this subchapter and is not required to
  submit an application for a grant if the company produces moving
  image projects that meet the qualification requirements of Section
  485.023 at a production facility located in this state that is owned
  by the company or a parent, subsidiary, or affiliate of the company.
  A production company shall notify the office of the company's
  eligibility under this subsection.
         SECTION 3.  Section 485.023, Government Code, is amended to
  read as follows:
         Sec. 485.023.  QUALIFICATION. To qualify for a grant under
  this subchapter:
               (1)  a production company must have spent a minimum of:
                     (A)  $250,000 in in-state spending for a film or
  television program; or
                     (B)  $100,000 in in-state spending for a
  commercial or series of commercials, an educational or
  instructional video or series of educational or instructional
  videos, or a digital interactive media production;
               (2)  at least 50 [70] percent of the production crew,
  actors, and extras for a moving image project must be paid for their
  services on the project [Texas residents unless the office
  determines and certifies in writing that a sufficient number of
  qualified crew, actors, and extras are not available to the company
  at the time principal photography begins]; and
               (3)  [at least 60 percent of the moving image project
  must be filmed in Texas; and
               [(4)]  a production company must submit to the office
  an expended budget, in a format prescribed by the office, that
  reflects all in-state spending and includes all receipts, invoices,
  pay orders, and other documentation considered necessary by the
  office to accurately determine the amount of a production company's
  in-state spending that has occurred.
         SECTION 4.  Section 485.024, Government Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  Except as provided by Section 485.025, the amount of a
  grant under this subchapter is as follows:
               (1)  five percent of in-state spending on a moving
  image project if the production company spent at least $250,000 but
  less than $1 million on the project;
               (2)  10 percent of in-state spending on a moving image
  project if the production company spent at least $1 million but less
  than $3.5 million on the project; or
               (3)  notwithstanding Subdivisions (1) and (2), 22.5
  percent of in-state spending on a moving image project if at least
  50 percent of the production crew, actors, and extras for the
  project are from diverse ethnic backgrounds [may not exceed the
  amount established by office rule].
         (a-1)  The office shall adopt rules prescribing the method
  the office will use to calculate the amount of a grant under this
  section, including the method by which the office will determine
  whether the production crew, actors, and extras for a moving image
  project meet the requirement of Subsection (a)(3) [subsection].
  [The office shall publish a written summary of the method for
  determining grants before awarding a grant under this section. The
  method must consider at a minimum:
               [(1)  the current and likely future effect a moving
  image project will have on employment, tourism, and economic
  activity in this state; and
               [(2)  the amount of a production company's in-state
  spending for a moving image project.]
         SECTION 5.  Section 485.025, Government Code, is amended to
  read as follows:
         Sec. 485.025.  ADDITIONAL GRANT FOR UNDERUTILIZED AND
  ECONOMICALLY DISTRESSED AREAS. In addition to the grants [grant]
  calculated under Sections [Section] 485.024 and 485.0255, a
  production company that spends at least 25 percent of a moving image
  project's filming days in an underutilized and economically
  distressed area is eligible for an additional grant in an amount
  equal to 7.5 [2.5] percent of the total amount of the production
  company's in-state spending for the moving image project.
         SECTION 6.  Subchapter B, Chapter 485, Government Code, is
  amended by adding Section 485.0255 to read as follows:
         Sec. 485.0255.  ADDITIONAL PRODUCTION CREW GRANT. (a) In
  addition to the grants calculated under Sections 485.024(a)(1) and
  (2) and Section 485.025, if at least 50 percent of the production
  crew, actors, and extras for a moving image project are from diverse
  ethnic backgrounds, the production company is eligible for an
  additional grant in an amount equal to 2.5 percent of the total
  amount of the production company's in-state spending for the
  project.
         (b)  The office shall adopt rules prescribing the method by
  which the office will determine whether a production company meets
  the requirement for an additional grant under this section.
         SECTION 7.  Chapter 485, Government Code, is amended by
  adding Subchapter C to read as follows:
  SUBCHAPTER C. MOVING IMAGE PRODUCTION FACILITY INCENTIVE PROGRAM
         Sec. 485.041.  DEFINITIONS. In this subchapter:
               (1)  "In-state construction spending" means the amount
  of money spent by a production company on the acquisition,
  construction, renovation, or lease of a production facility in this
  state.
               (2)  "Production company" has the meaning assigned by
  Section 485.021.
               (3)  "Production facility" means a facility and related
  equipment that produce films, television programs, including
  reality-based television programs, digital interactive media,
  video games, or visual effects projects.
         Sec. 485.042.  MOVING IMAGE PRODUCTION FACILITY INCENTIVE
  PROGRAM. (a) Using gifts, grants, donations, and appropriations
  made available to the office for that purpose, the office shall
  administer a grant program for production companies that construct
  production facilities 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:
               (1)  requirements for the submission, before facility
  construction begins, of an estimate of total in-state construction
  spending; and
               (2)  provisions relating to the submission of other
  information considered useful and necessary by the office for an
  adequate and accurate analysis of a production company's
  qualifications for a grant under this subchapter.
         (c)  The office may accept gifts, grants, and donations for
  the purpose of implementing this subchapter.
         Sec. 485.043.  QUALIFICATION. To qualify for a production
  facility grant under this subchapter, a production company must be
  a:
               (1)  limited liability company, partnership, or
  corporation formed or organized under the laws of this state; or
               (2)  joint venture or other legal entity in which at
  least one entity that holds at least a 30 percent ownership interest
  is a limited liability company, partnership, or corporation formed
  or organized under the laws of this state.
         Sec. 485.044.  GRANT. The amount of a production facility
  grant under this subchapter is determined as follows:
               (1)  if the production company spent at least $2
  million but less than $4 million on the facility, the amount of the
  grant is equal to 10 percent of in-state construction spending on
  the facility; or
               (2)  if the production company spent at least $4
  million on the facility, the amount of the grant is equal to 20
  percent of in-state construction spending on the facility.
         Sec. 485.045.  ADDITIONAL GRANT FOR UNDERUTILIZED AND
  ECONOMICALLY DISTRESSED AREAS. In addition to the grants
  calculated under Sections 485.044 and 485.046, a production company
  that constructs a production facility in an underutilized and
  economically distressed area is eligible for an additional grant in
  an amount equal to 7.5 percent of the total amount of the production
  company's in-state construction spending for the facility.
         Sec. 485.046.  ADDITIONAL GRANT FOR CERTAIN PRODUCTION
  FACILITIES. (a) In addition to the grants calculated under
  Sections 485.044 and 485.045, a production company is eligible for
  an additional grant in an amount equal to 2.5 percent of the total
  amount of the company's in-state construction spending for a
  production facility if:
               (1)  the company constructs the facility to produce
  projects with a primary focus on persons from diverse ethnic
  backgrounds; and
               (2)  at least 25 percent of the persons employed at the
  facility are from diverse ethnic backgrounds.
         (b)  The office shall adopt rules prescribing the method by
  which the office will determine whether a production company meets
  the requirements for an additional grant under this section.
         SECTION 8.  The following provisions of the Government Code
  are repealed:
               (1)  Section 485.021(4); and
               (2)  Section 485.024(b).
         SECTION 9.  The changes in law made by this Act to Chapter
  485, Government Code, apply only to a grant awarded on or after the
  effective date of this Act. A grant awarded before the effective
  date of this Act is governed by the law in effect on the date the
  award was made, and the former law is continued in effect for that
  purpose.
         SECTION 10.  This Act takes effect September 1, 2021.