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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of a Texas film and entertainment industry |
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incentive program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 485, Government Code, is amended by |
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adding Subchapter C to read as follows: |
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SUBCHAPTER C. TEXAS FILM AND ENTERTAINMENT INDUSTRY INCENTIVE |
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PROGRAM |
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Sec. 485.041. DEFINITIONS. In this subchapter: |
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(1) "In-state construction spending" means the amount |
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of money spent by a production company on the construction of a |
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production facility in this state. |
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(2) "In-state spending" means the amount of money |
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spent in this state by a production company during the production |
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and completion of a project. |
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(3) "Production company" has the meaning assigned by |
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Section 485.021. |
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(4) "Production facility" means a facility that |
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produces films, television programs including reality-based |
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television programs, digital interactive media, commercials, or |
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educational or instructional videos. |
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(5) "Project" means a film, television program |
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including a reality-based television program, digital interactive |
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media, commercial, or educational or instructional video |
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production. The term includes a visual effects project. |
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(6) "Underutilized and economically distressed area" |
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has the meaning assigned by Section 485.021. |
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Sec. 485.042. TEXAS FILM AND ENTERTAINMENT INDUSTRY |
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INCENTIVE PROGRAM. (a) Using gifts, grants, donations, and |
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appropriations made available to the office for that purpose, the |
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office shall administer a grant program for production companies |
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that: |
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(1) produce projects in this state; or |
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(2) construct production facilities in this state. |
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(b) The office shall develop a procedure for the submission |
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of grant applications and the awarding of grants under this |
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subchapter. The procedure must include: |
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(1) requirements for the submission, before project |
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production or facility construction begins, of: |
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(A) an estimate of total in-state spending or |
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in-state construction spending, as applicable; and |
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(B) the estimated number of jobs for cast and |
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production crew during the production and completion of the |
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project, if applicable; and |
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(2) provisions relating to the submission of other |
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information considered useful and necessary by the office for an |
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adequate and accurate analysis of a production company's |
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qualifications for a grant under this subchapter. |
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(c) The office may accept gifts, grants, and donations for |
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the purpose of implementing this subchapter. |
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Sec. 485.043. QUALIFICATION. (a) To qualify for a |
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production facility or project production grant under this |
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subchapter, a production company must be a: |
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(1) limited liability company, partnership, or |
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corporation formed or organized under the laws of this state; or |
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(2) joint venture or other legal entity in which at |
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least one entity that holds at least a 30 percent ownership interest |
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is a limited liability company, partnership, or corporation formed |
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or organized under the laws of this state. |
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(b) To qualify for a production facility grant under this |
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subchapter, a production company must: |
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(1) have spent a minimum of $2.5 million in |
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constructing a production facility in this state; |
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(2) employ at least 15 full-time employees who are |
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residents of this state; and |
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(3) show that at least 80 percent of all services used |
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in the design and construction of the production facility are |
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provided by businesses that have their principal place of business |
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in this state. |
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(c) To qualify for a project production grant under this |
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subchapter, a production company must meet the qualifications for a |
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grant under Subchapter B as provided by Section 485.023. |
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Sec. 485.044. GRANT. (a) The amount of a production |
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facility grant under this subchapter is determined as follows: |
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(1) if the production company spent at least $2.5 |
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million but less than $5 million on the facility, the amount of the |
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grant is equal to 10 percent of in-state construction spending on |
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the facility; |
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(2) if the production company spent at least $5 |
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million but less than $10 million on the facility, the amount of the |
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grant is equal to 20 percent of in-state construction spending on |
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the facility; or |
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(3) if the production company spent at least $10 |
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million on the facility, the amount of the grant is equal to 25 |
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percent of in-state construction spending on the facility. |
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(b) The amount of a project production grant under this |
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subchapter is determined as follows: |
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(1) for a film or television program project the |
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amount of the grant is equal to: |
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(A) 10 percent of in-state spending on the |
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project if the production company spent at least $250,000 but less |
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than $1 million on the project; |
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(B) 20 percent of in-state spending on the |
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project if the production company spent at least $1 million but less |
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than $3.5 million on the project; or |
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(C) 30 percent of in-state spending on the |
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project if the production company spent at least $3.5 million on the |
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project; |
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(2) for a digital interactive media project the amount |
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of the grant is equal to: |
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(A) 10 percent of in-state spending on the |
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project if the production company spent at least $100,000 but less |
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than $1 million on the project; |
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(B) 20 percent of in-state spending on the |
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project if the production company spent at least $1 million but less |
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than $3.5 million on the project; or |
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(C) 30 percent of in-state spending on the |
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project if the production company spent at least $3.5 million on the |
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project; |
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(3) notwithstanding Subdivision (1), for a |
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reality-based television program project the amount of the grant is |
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equal to: |
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(A) 10 percent of in-state spending on the |
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project if the production company spent at least $250,000 but less |
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than $1 million on the project; or |
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(B) 20 percent of in-state spending on the |
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project if the production company spent at least $1 million on the |
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project; and |
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(4) for a commercial, educational or instructional |
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video, or visual effects project the amount of the grant is equal |
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to: |
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(A) 10 percent of in-state spending on the |
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project if the production company spent at least $100,000 but less |
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than $1 million on the project; or |
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(B) 20 percent of in-state spending on the |
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project if the production company spent at least $1 million on the |
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project. |
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Sec. 485.045. ADDITIONAL GRANT FOR UNDERUTILIZED AND |
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ECONOMICALLY DISTRESSED AREAS. (a) In addition to a grant |
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calculated under Section 485.044(a), a production company that |
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constructs a production facility in an underutilized and |
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economically distressed area is eligible for an additional grant in |
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an amount equal to five percent of the total amount of the |
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production company's in-state construction spending for the |
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facility. |
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(b) In addition to a grant calculated under Section |
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485.044(b), a production company that produces a project in an |
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underutilized and economically distressed area is eligible for an |
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additional grant in an amount equal to five percent of the total |
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amount of the production company's in-state spending for the |
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project. |
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SECTION 2. This Act takes effect September 1, 2021. |