By: Goldman, Ashby, Hunter, Morrison, H.B. No. 4419
      Collier, et al.
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the promotion of film and television production in this
  state, including the eligibility of film or television productions
  for funding under the major events reimbursement program, the
  creation of a film events trust fund and a film production tax
  rebate trust fund, the establishment of virtual film production
  institutes, and the designation of media production development
  zones.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle H, Title 3, Education Code, is amended
  by adding Chapter 157 to read as follows:
  CHAPTER 157. VIRTUAL FILM PRODUCTION INSTITUTES
         Sec. 157.001.  DEFINITION. In this chapter, "institute"
  means a virtual film production institute established under this
  chapter.
         Sec. 157.002.  ESTABLISHMENT; PURPOSE. Texas A&M University
  at College Station and Texas State University may each establish a
  virtual film production institute to provide educational
  opportunities for students interested in studying virtual film
  production and promote student engagement in the development of a
  virtual film production industry in this state. 
         Sec. 157.003.  FUNDING. In addition to any amount
  appropriated by the legislature, each institute may apply for and
  accept gifts, grants, and donations from the federal government or
  any other source.
         SECTION 2.  Section 475.0001, Government Code, is amended by
  adding Subdivisions (3-a) and (3-b) to read as follows:
               (3-a)  "Film or television production" means the
  activities necessary to prepare, produce, perform, or present in
  this state a television program, movie, virtual film, or any
  combination of multimedia program.
               (3-b)  "Film or television production organization"
  means an organization that produces a television program, movie,
  virtual film, or multimedia program, regardless of the manner in
  which the organization is formed or legally organized.  The term
  includes a production company, a studio, or a production team for a
  television program, movie, virtual film, or multimedia program.
         SECTION 3.  Section 478.0001(3), Government Code, as amended
  by Chapters 10 (H.B. 1472), 102 (S.B. 1265), 605 (S.B. 1155), and
  915 (H.B. 3607), Acts of the 87th Legislature, Regular Session,
  2021, is reenacted and amended to read as follows:
               (3)  "Event" means any of the following and includes
  any activity related to or associated with the following:
                     (A)  the Academy of Country Music Awards;
                     (B)  the Amateur Athletic Union Junior Olympic
  Games;
                     (C)  a Big 12 Football Conference Championship
  game;
                     (D)  the Breeders' Cup World Championships;
                     (E)  a game of the College Football Playoff or its
  successor;
                     (F)  the Confederation of North, Central America
  and Caribbean Association Football (Concacaf) Gold Cup;
                     (G) [(F)]  a CONVRG conference;
                     (H) [(G)]  an Elite Rodeo Association World
  Championship;
                     (I)  a film or television production;
                     (J) [(H)]  a Formula One automobile race;
                     (K) [(I)]  the largest event held each year at a
  sports entertainment venue in this state with a permanent seating
  capacity, including grandstand and premium seating, of at least
  125,000 on September 1, 2021;
                     (L) [(J)]  the Major League Baseball All-Star
  Game;
                     (M) [(K)]  the Major League Soccer All-Star Game
  or the Major League Soccer Cup;
                     (N) [(L)]  a mixed martial arts championship;
                     (O) [(M)]  the Moto Grand Prix of the United
  States;
                     (P) [(N)]  the National Association for Stock Car
  Auto Racing (NASCAR):
                           (i)  All-Star Race;
                           (ii)  season-ending Championship Race; or
                           (iii)  Texas Grand Prix race;
                     (Q) [(O)]  the National Basketball Association
  All-Star Game;
                     (R) [(P)]  a National Collegiate Athletic
  Association Final Four tournament game;
                     (S) [(Q)] the National Collegiate Athletic
  Association men's or women's lacrosse championships;
                     (T) [(R)]  a national collegiate championship of
  an amateur sport sanctioned by the national governing body of the
  sport that is recognized by the United States Olympic Committee;
                     (U) [(S)]  the National Cutting Horse Association
  Triple Crown;
                     (V) [(T)]  the National Hockey League All-Star
  Game;
                     (W)  the National Hot Rod Association Fall
  Nationals at the Texas Motorplex;
                     (X) [(U)]  a national political convention of the
  Republican National Committee or the Democratic National
  Committee;
                     (Y) [(V)]  a championship event in the National
  Reined Cow Horse Association (NRCHA) Championship Series;
                     (Z) [(W)]  an Olympic activity, including a
  Junior or Senior activity, training program, or feeder program
  sanctioned by the United States Olympic Committee's Community
  Olympic Development Program;
                     (AA) [(X)]  a presidential general election
  debate;
                     (BB) [(Y)]  the Professional Rodeo Cowboys
  Association National Finals Rodeo;
                     (CC) [(Z)]  a Super Bowl;
                     (DD) [(AA)]  the United States Open Championship;
                     (EE) [(BB)]  a World Cup soccer game or the World
  Cup soccer tournament;
                     (FF) [(CC)]  the World Games;
                     (GG) [(DD)]  a World Wrestling Entertainment
  WrestleMania event; or
                     (HH) [(EE)]  the X Games.
         SECTION 4.  Section 478.0001(7), Government Code, as amended
  by Chapters 10 (H.B. 1472), 102 (S.B. 1265), and 915 (H.B. 3607),
  Acts of the 87th Legislature, Regular Session, 2021, is reenacted
  and amended to read as follows:
               (7)  "Site selection organization" means:
                     (A)  the Academy of Country Music;
                     (B)  the Amateur Athletic Union;
                     (C)  the Big 12 Conference;
                     (D)  the College Football Playoff Administration,
  LLC, or its successor;
                     (E)  the Commission on Presidential Debates;
                     (F)  the Confederation of North, Central America
  and Caribbean Association Football (Concacaf);
                     (G) [(F)]  the Democratic National Committee;
                     (H) [(G)]  Dorna Sports;
                     (I) [(H)]  the Elite Rodeo Association;
                     (J) [(I)]  Encore Live;
                     (K) [(J)]  ESPN or an affiliate;
                     (L) [(K)]  the Federation Internationale de
  Football Association (FIFA);
                     (M)  a film or television production
  organization;
                     (N) [(L)]  the International World Games
  Association;
                     (O) [(M)]  Major League Baseball;
                     (P) [(N)]  Major League Soccer;
                     (Q) [(O)]  the National Association for Stock Car
  Auto Racing (NASCAR);
                     (R) [(P)]  the National Basketball Association;
                     (S) [(Q)]  the National Collegiate Athletic
  Association;
                     (T) [(R)]  the National Cutting Horse
  Association;
                     (U) [(S)]  the National Football League;
                     (V) [(T)]  the National Hockey League;
                     (W)  the National Hot Rod Association;
                     (X) [(U)]  the National Reined Cow Horse
  Association (NRCHA);
                     (Y) [(V)]  the Professional Rodeo Cowboys
  Association;
                     (Z) [(W)]  the Republican National Committee;
                     (AA) [(X)]  the Ultimate Fighting Championship;
                     (BB) [(Y)]  the United States Golf Association;
                     (CC) [(Z)]  the United States Olympic Committee;
                     (DD) [(AA)]  World Wrestling Entertainment; or
                     (EE) [(BB)]  the national governing body of a
  sport that is recognized by:
                           (i)  the Federation Internationale de
  l'Automobile;
                           (ii)  Formula One Management Limited;
                           (iii)  the National Thoroughbred Racing
  Association; or
                           (iv)  the United States Olympic Committee.
         SECTION 5.  Section 478.0051, Government Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  Notwithstanding Subsection (b), an event described by
  Section 478.0001(3)(I) may receive funding through the program if a
  site selection organization selects:
               (1)  a site in this state as the sole site for the
  event;
               (2)  two or more predetermined locations as the sites
  in this state for the event; or 
               (3)  a site in this state as the sole site for the event
  in a region composed of this state and one or more adjoining states.
         SECTION 6.  Subtitle E-1, Title 4, Government Code, is
  amended by adding Chapter 480A to read as follows:
  CHAPTER 480A.  FILM EVENTS TRUST FUND
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 480A.0001.  PURPOSE. The purpose of this chapter is to
  establish a film events trust fund to maximize the preparation,
  production, performance, or presentation of television programs,
  movies, virtual films, and multimedia productions in this state and
  for successful competition with other states for those programs,
  movies, films, and productions.
         Sec. 480A.0002.  DEFINITIONS. In this chapter:
               (1)  "Endorsing county" means a county that contains a
  site selected by a site selection organization for a film event.
               (2)  "Endorsing entity" means a local organizing
  committee, endorsing county, or endorsing municipality. 
               (3)  "Endorsing municipality" means a municipality
  that contains a site selected by a site selection organization for a
  film event.
               (4)  "Event support contract" means a joinder
  undertaking, a joinder agreement, or a similar contract executed by
  a site selection organization and a local organizing committee, an
  endorsing municipality, or an endorsing county for a film event.
               (5)  "Film event" includes the activities necessary to
  prepare, produce, perform, or present in this state a television
  program, movie, virtual film, or any combination of multimedia
  programs or a series of television programs, movies, virtual films,
  or multimedia programs, for which an endorsing entity seeks
  approval from a site selection organization to conduct those
  activities at a site in this state. The term includes any activity
  related to or associated with the preparation, production,
  performance, or presentation.
               (6)  "Local organizing committee" means a nonprofit
  corporation or the corporation's successor in interest that is
  authorized by an endorsing municipality or endorsing county to:
                     (A)  pursue an application and bid on the
  applicant's behalf to a site selection organization for selection
  as the site of a film event; or
                     (B)  execute an agreement with a site selection
  organization regarding a bid to host a film event.
               (7)  "Office" means the Texas Economic Development and
  Tourism Office.
               (8)  "Site" includes one or more sites in this state at
  which a film event is held. 
               (9)  "Site selection organization" means a film or
  television organization that conducts or considers conducting in
  this state a film event eligible under Section 480A.0051.
         Sec. 480A.0003.  RULES. (a)  The office may adopt rules
  necessary to implement this chapter.
         (b)  The rules adopted under this section must be prescribed
  and applied to promote the purpose of this chapter, as provided by
  Section 480A.0001.
         (c)  The office may adopt rules necessary to accommodate a
  film event that occurs over multiple days, weeks, or years, and in
  multiple locations across this state. Notwithstanding any other
  law, to the extent of a conflict between a rule adopted by the
  office to accomplish the purposes of this subsection and another
  provision of this chapter, the rule controls.
         Sec. 480A.0004.  CONSTRUCTION OF CHAPTER. (a) This chapter
  may not be construed as creating or requiring a state guarantee of
  an obligation imposed on an endorsing municipality, an endorsing
  county, or this state under an event support contract or another
  agreement relating to hosting a film event in this state.
         (b)  This chapter shall be construed and applied to
  effectuate the purpose of this chapter.
  SUBCHAPTER B. ELIGIBILITY
         Sec. 480A.0051.  FILM EVENTS ELIGIBLE FOR FUNDING. (a)  A
  film event is eligible for funding under this chapter only if:
               (1)  a site selection organization, after conducting a
  highly competitive selection process of one or more sites not in
  this state, selects a site in this state for the film event to be
  held:
                     (A)  one time; or
                     (B)  if the film event is scheduled under an event
  contract or event support contract to be held each year for a period
  of years, one time in each year; and
               (2)  a site selection organization selects:
                     (A)  a site in this state as the sole site for the
  film event;
                     (B)  two or more locations as the sites in this
  state for the film event; or
                     (C)  a site in this state as the sole site for the
  film event in a region composed of this state and one or more
  adjoining states.
         (b)  During the period in which a film event eligible under
  this section is held in this state, a site selection organization
  may select additional sites for the film event. 
         Sec. 480A.0052.  LIMITATIONS ON CERTAIN FUNDING REQUESTS.
  (a) This section applies only to a film event for which the office
  determines under Section 480A.0102 that the total incremental
  increase in tax receipts is less than $5 million.
         (b)  An endorsing municipality or endorsing county may
  during any 12-month period submit requests for funding under this
  chapter for not more than 30 film events to which this section
  applies.
  SUBCHAPTER C. STATE ACTIONS RELATING TO FILM EVENTS
         Sec. 480A.0101.  PREREQUISITES FOR OFFICE ACTION. The
  office may not undertake any duty imposed by this chapter unless:
               (1)  an endorsing entity submits a request for funding
  under this chapter; and
               (2)  the request is accompanied by documentation from a
  site selection organization selecting the site for the film event.
         Sec. 480A.0102.  DETERMINATION OF INCREMENTAL INCREASE IN
  CERTAIN TAX RECEIPTS. (a) After a site selection organization
  selects a site for a film event in this state in accordance with an
  application by an endorsing entity, the office shall determine the
  incremental increases in the following tax receipts that the office
  determines are directly attributable to the film event for the
  30-day period that ends at the end of the day after the date on which
  the film event activities in this state are completed or, if the
  film event will be presented on more than one day, after the last
  date on which the film event will be presented:
               (1)  the receipts to this state from taxes imposed
  under Chapters 151, 152, 156, and 183, Tax Code, and under Title 5,
  Alcoholic Beverage Code, in the market areas designated under
  Section 480A.0104;
               (2)  the receipts collected by this state for each
  endorsing municipality in the market area from the sales and use tax
  imposed by each endorsing municipality under Section 321.101(a),
  Tax Code, and the mixed beverage tax revenue to be received by each
  endorsing municipality under Section 183.051(b), Tax Code;
               (3)  the receipts collected by this state for each
  endorsing county in the market area from the sales and use tax
  imposed by each endorsing county under Section 323.101(a), Tax
  Code, and the mixed beverage tax revenue to be received by each
  endorsing county under Section 183.051(b), Tax Code;
               (4)  the receipts collected by each endorsing
  municipality in the market area from the hotel occupancy tax
  imposed under Chapter 351, Tax Code; and
               (5)  the receipts collected by each endorsing county in
  the market area from the hotel occupancy tax imposed under Chapter
  352, Tax Code.
         (b)  The office shall make the determination required by
  Subsection (a) in accordance with procedures the office develops
  and shall base that determination on information submitted by an
  endorsing entity.
         Sec. 480A.0103.  TIME FOR DETERMINATION. The office shall
  determine the incremental increase in tax receipts under Section
  480A.0102 not later than the earlier of:
               (1)  the 30th day after the date the office receives the
  information for a film event submitted by an endorsing entity on
  which the office bases the determination as provided by Section
  480A.0102(b); or
               (2)  one month before the date scheduled for
  commencement of preparation, production, performance, or
  presentation of the film event.
         Sec. 480A.0104.  DESIGNATION OF MARKET AREA. (a) For
  purposes of Section 480A.0102(a)(1), the office shall designate as
  a market area for a film event each area in which the office
  determines there is a reasonable likelihood of measurable economic
  impact directly attributable to the preparation, production,
  performance, or presentation of the film event. The office shall
  include areas likely to provide venues, accommodations, and
  services in connection with the film event based on the proposal the
  endorsing entity provides to the office.
         (b)  The office shall determine the geographic boundaries of
  each market area.
         (c)  An endorsing municipality or endorsing county selected
  as the site for the film event must be included in a market area for
  the film event.
         (d)  The office may amend the market area for a film event
  eligible under this section during the period in which the film
  event is held. 
         Sec. 480A.0105.  ESTIMATE OF TAX REVENUE CREDITED TO FUND.
  (a) Not later than one month before the first date scheduled for
  commencement of preparation, production, performance, or
  presentation of a film event, the office shall provide an estimate
  of the total amount of tax revenue that would be transferred or
  deposited to the film events trust fund under this chapter in
  connection with that film event if the film event were prepared,
  produced, performed, or presented in this state at a site selected
  in accordance with an application by an endorsing entity.  The
  office may revise the office's estimate under this subsection
  during the period in which the film event is held.
         (b)  The office shall provide the estimate on request to an
  endorsing entity. 
         (c)  An endorsing entity may submit the office's estimate to
  a site selection organization.
         Sec. 480A.0106.  MODEL FILM EVENT SUPPORT CONTRACT AND MODEL
  APPLICATION FORM. (a) The office may adopt a model film event
  support contract and a model application form. If the office adopts
  a contract or form under this subsection, the office shall make the
  documents available on the office's Internet website.
         (b)  The office's adoption of a model film event support
  contract and model application form under this section does not
  require the use of those documents for purposes of this chapter.
  SUBCHAPTER D. FUND ESTABLISHMENT AND CONTRIBUTIONS
         Sec. 480A.0151.  FILM EVENTS TRUST FUND. The film events
  trust fund is established outside the state treasury and is held in
  trust by the comptroller for administration of this chapter.
         Sec. 480A.0152.  DEPOSIT OF MUNICIPAL AND COUNTY TAX
  REVENUE. (a) Each endorsing municipality or endorsing county
  shall remit to the comptroller and the comptroller shall deposit
  into a trust fund created by the comptroller, at the direction of
  the office, and designated as the film events trust fund the amount
  of the municipality's or county's hotel occupancy tax revenue
  determined under Section 480A.0102(a)(4) or (5), less any amount of
  the revenue that the municipality or county determines is necessary
  to meet the obligations of the municipality or county.
         (b)  The comptroller, at the direction of the office, shall
  retain the amount of sales and use tax revenue and mixed beverage
  tax revenue determined under Section 480A.0102(a)(2) or (3) from
  the amounts otherwise required to be sent to the municipality under
  Sections 321.502 and 183.051(b), Tax Code, or to the county under
  Sections 323.502 and 183.051(b), Tax Code, less any amount of the
  revenue that the municipality or county determines is necessary to
  meet the obligations of the municipality or county, and shall
  deposit the retained tax revenue to the film events trust fund.
         (c)  The comptroller shall begin retaining and depositing
  the municipal and county tax revenue:
               (1)  with the first distribution of that tax revenue
  that occurs after the first day of the period described by Section
  480A.0102(a); or
               (2)  at a time the office otherwise determines to be
  practicable.
         (d)  The comptroller shall discontinue retaining the
  municipal and county tax revenue when the amount of the applicable
  tax revenue determined under Section 480A.0102(a)(2) or (3) has
  been retained.
         Sec. 480A.0153.  OTHER LOCAL MONEY. (a) In lieu of the
  municipal and county tax revenues remitted or retained under
  Section 480A.0152, an endorsing municipality or endorsing county
  may remit to the office for deposit to the film events trust fund
  other local money in an amount equal to the total amount of
  municipal and county tax revenue determined under Sections
  480A.0102(a)(2)-(5).
         (b)  An endorsing municipality or endorsing county must
  remit the other local money not later than the 90th day after the
  last day of the period scheduled for the film event.
         (c)  For purposes of Section 480A.0155, the amount deposited
  under this section is considered remitted municipal and county tax
  revenue.
         Sec. 480A.0154.  SURCHARGES AND USER FEES. An endorsing
  municipality or endorsing county may collect and remit to the
  office any applicable surcharges and user fees attributable to a
  film event for deposit to the film events trust fund.
         Sec. 480A.0155.  STATE TAX REVENUE. (a) The comptroller, at
  the direction of the office, shall transfer to the film events trust
  fund a portion of the state tax revenue in an amount equal to 6.25
  multiplied by the amount of the municipal and county tax revenue
  retained or remitted under this chapter, including:
               (1)  local sales and use tax revenue;
               (2)  mixed beverage tax revenue;
               (3)  hotel occupancy tax revenue; and
               (4)  any applicable surcharge and user fee revenue.
         (b)  The amount transferred under Subsection (a) may not
  exceed the incremental increase in tax receipts determined under
  Section 480A.0102(a)(1).
  SUBCHAPTER E. DISBURSEMENTS FROM FILM EVENTS TRUST FUND
         Sec. 480A.0201.  DISBURSEMENT WITHOUT APPROPRIATION. Money
  in the film events trust fund may be disbursed by the office without
  appropriation only as provided by this chapter.
         Sec. 480A.0202.  DISBURSEMENT FROM FILM EVENTS TRUST FUND.
  (a) After approval of each contributing endorsing municipality and
  endorsing county, if any, the office may make a disbursement from
  the film events trust fund for a purpose for which an endorsing
  entity or this state is obligated under an event support contract,
  including any obligation to pay costs incurred in preparing,
  producing, performing, or presenting the film event.
         (b)  In considering whether to make a disbursement from the
  film events trust fund, the office may not consider a contingency
  clause in an event support contract as relieving an endorsing
  entity's obligation to pay a cost under the contract.
         (c)  If the office makes a disbursement from the film events
  trust fund, the office shall satisfy the obligation proportionately
  from the local and state revenue in the fund.
         Sec. 480A.0203.  REDUCTION OF DISBURSEMENT AMOUNT. (a)
  After the conclusion of the film event, the office shall compare
  information on the number of persons who participated in the film
  event as provided under Section 480A.0251 with any estimated number
  of persons participating in the film event used to determine the
  incremental increase in tax receipts under Section 480A.0102. If
  the actual number of persons who participated in the film event is
  significantly lower than the estimated number of persons
  participating in the film event, the office may reduce the amount of
  a disbursement from the film events trust fund for an endorsing
  entity:
               (1)  in proportion to the discrepancy between the
  actual and estimated number of persons participating in the film
  event; and
               (2)  in proportion to the amount the entity contributed
  to the fund.
         (b)  The office by rule shall:
               (1)  define "significantly lower" for purposes of this
  section; and
               (2)  provide the manner in which the office may
  proportionately reduce a disbursement.
         (c)  This section does not affect the remittance under
  Section 480A.0207 of any money remaining in the film events trust
  fund.
         Sec. 480A.0204.  ALLOWABLE EXPENSES. (a) Money in the film
  events trust fund may be used to:
               (1)  pay the principal of and interest on notes issued
  under Section 480A.0252; and
               (2)  fulfill obligations of an endorsing municipality,
  an endorsing county, or this state to a site selection organization
  under an event support contract.
         (b)  Subject to Sections 480A.0202 and 480A.0205, the
  obligations described by Subsection (a)(2) may include the payment
  of:
               (1)  the costs relating to the preparation of the film
  event; and
               (2)  the costs of producing, performing, or presenting
  the film event, including costs of an improvement or renovation to
  an existing facility and costs of acquisition or construction of a
  new facility or other facility that could be used to prepare,
  produce, perform, or present film events.
         Sec. 480A.0205.  LIMITATION ON CERTAIN DISBURSEMENTS. (a)
  A disbursement from the film events trust fund is limited to 25
  percent of the cost of a structural improvement if an obligation is
  incurred under an event support contract to make the improvement or
  add the fixture to a site for a film event.
         (b)  The remainder of an obligation described by Subsection
  (a) is not eligible for a disbursement from the film events trust
  fund, unless the obligation is for an improvement or fixture for a:
               (1)  publicly owned facility; or 
               (2)  facility that could be used for future film
  events. 
         Sec. 480A.0206.  PROHIBITED DISBURSEMENTS. (a) Subject to
  Subsection (b), the office may not make a disbursement from the film
  events trust fund that the office determines would be used to:
               (1)  construct an arena, stadium, or convention center;
  or
               (2)  conduct usual and customary maintenance of a
  facility.
         (b)  Subsection (a) does not prohibit a disbursement from the
  film events trust fund for the construction of temporary structures
  within an arena, stadium, or convention center that are necessary
  for the preparation, production, performance, and presentation of a
  film event or temporary maintenance of a facility that is necessary
  for the preparation, production, performance, and presentation of a
  film event.
         Sec. 480A.0207.  REMITTANCE OF REMAINING FUND MONEY. On
  payment of all municipal, county, or state obligations under an
  event support contract related to the location of a film event in
  this state, the office shall remit to each endorsing entity, in
  proportion to the amount contributed by the entity, any money
  remaining in the film events trust fund.
  SUBCHAPTER F. LOCAL POWERS AND DUTIES RELATING TO FILM EVENTS
         Sec. 480A.0251.  REQUIRED INFORMATION. (a) An endorsing
  entity shall provide information required by the office to fulfill
  the office's duties under this chapter, including:
               (1)  annual audited statements of any financial records
  required by a site selection organization; and
               (2)  data obtained by the endorsing entity relating to:
                     (A)  the number of persons hired, contracted,
  volunteering, or otherwise directly participating in the
  preparation, production, performance, or presentation of the film
  event, including an estimate of the number of persons expected to
  participate in the film event who are not residents of this state;
                     (B)  the economic impact of the film event; and
                     (C)  any other information the office considers
  necessary.
         (b)  An endorsing entity must provide any annual audited
  financial statement required by the office not later than the end of
  the fourth month after the last day of the period covered by the
  financial statement.
         Sec. 480A.0252.  ISSUANCE OF NOTES. (a) To meet its
  obligations under an event support contract to improve, construct,
  renovate, or acquire facilities or to acquire equipment, an
  endorsing municipality by ordinance or an endorsing county by order
  may authorize the issuance of notes.
         (b)  An endorsing municipality or endorsing county may
  provide that the notes be paid from and secured by:
               (1)  amounts on deposit or amounts to be transferred or
  deposited to the film events trust fund; or
               (2)  surcharges from user fees charged in connection
  with the film event, including parking or ticket fees, if the film
  event is premiered, performed, or otherwise presented exclusively
  at a venue in this state for which parking or ticket fees may be
  collected.
         (c)  A note issued must mature not later than the seventh
  anniversary of the date of issuance.
         Sec. 480A.0253.  PLEDGE OF SURCHARGES TO GUARANTEE
  OBLIGATIONS. An endorsing municipality or endorsing county may
  guarantee its obligations under an event support contract and this
  chapter by pledging, in addition to the tax revenue deposited under
  Section 480A.0152, surcharges from user fees charged in connection
  with the film event, including parking or ticket fees, if the film
  event is premiered, performed, or otherwise presented exclusively
  at a venue in this state for which parking or ticket fees may be
  collected.
         SECTION 7.  Subtitle F, Title 4, Government Code, is amended
  by adding Chapter 482 to read as follows:
  CHAPTER 482. FILM OR TELEVISION PRODUCTION TAX REBATE TRUST FUND
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 482.0001.  DEFINITIONS. In this chapter:
               (1)  "Competitive selection process" means the
  competitive selection process established by rule of the office for
  a film or television production organization to use in considering
  sites for film or television productions.
               (2)  "Film or television production" means a television
  program, movie, virtual film, or any combination of multimedia
  programming produced, filmed, performed, or presented wholly or
  partly in this state.
               (3)  "Film or television production organization" has
  the meaning assigned by Section 475.0001.
               (4)  "Office" means the music, film, television, and
  multimedia office within the office of the governor. 
               (5)  "Trust fund" means the film production tax rebate
  trust fund established under this chapter.
         Sec. 482.0002.  RULES. (a) The office shall adopt rules
  necessary to implement this chapter. 
         (b)  Any rules adopted under this section must be designed
  and applied to encourage and incentivize organizations to select a
  site in this state to conduct film or television productions.
         (c)  The office has broad discretion in implementing this
  chapter and in adopting rules necessary for that implementation to
  allow for the creation of an outstanding and competitive rebate
  program to attract film or television productions to this state.
         (d)  The office may adopt rules necessary to accommodate a
  film or television production that occurs over multiple days,
  weeks, or years, and in multiple locations across this state.
  Notwithstanding any other law, to the extent of a conflict between a
  rule adopted by the office to accomplish the purposes of this
  subsection and another provision of this chapter, the rule
  controls.
  SUBCHAPTER B. ELIGIBILITY
         Sec. 482.0051.  FILM OR TELEVISION PRODUCTIONS ELIGIBLE FOR
  FUNDING. A film or television production is eligible for funding
  under this chapter only if a film or television production
  organization, after conducting a highly competitive selection
  process of one or more sites not in this state, selects one or more
  sites in this state for all or part of the production.
  SUBCHAPTER C. STATE ACTIONS RELATING TO PRODUCTIONS
         Sec. 482.0101.  DETERMINATION OF INCREMENTAL INCREASE IN
  CERTAIN TAX RECEIPTS. After a film or television production
  organization selects a site or sites for a film or television
  production, the organization shall file an application with the
  office and supply information the office considers necessary to
  determine the incremental increases in the receipts to this state
  from taxes imposed under Chapters 151, 152, 156, and 183, Tax Code,
  and under Title 5, Alcoholic Beverage Code, in the market area
  designated under Section 482.0103 that the office determines are
  directly attributable to the preparation, production, performance,
  and presentation of the film or television production. 
         Sec. 482.0102.  TIME FOR DETERMINATION. The office shall
  calculate the incremental increase in tax receipts under Section
  482.0101 not later than the 60th day after the date the film or
  television production organization or its designated agent or
  representative submits the necessary documentation to the office to
  determine the rebate amount. 
         Sec. 482.0103.  DESIGNATION OF MARKET AREA. For purposes of
  Section 482.0101, the office shall designate for the film or
  television production a market area where there is a reasonable
  likelihood of measurable economic impact directly attributable to
  the preparation, production, performance, or presentation of the
  production. The office shall include market areas likely to
  provide venues, accommodations, and services in connection with the
  production based on the application provided to the office.
         Sec. 482.0104.  MODEL FILM OR TELEVISION PRODUCTION TAX
  REBATE APPLICATION. (a)  The office may adopt a model film or
  television production tax rebate application form. If the office
  adopts a model form under this section, the office shall make the
  form available on the office's Internet website. 
         (b)  The office's adoption of a model film or television
  production tax rebate application form under this section does not
  require the use of that form for purposes of this chapter. 
  SUBCHAPTER D. TRUST FUND ESTABLISHMENT AND CONTRIBUTIONS
         Sec. 482.0151.  FILM PRODUCTION TAX REBATE TRUST FUND. The
  film production tax rebate trust fund is established outside the
  state treasury and is held in trust by the comptroller for
  administration of this chapter. 
         Sec. 482.0152.  STATE TAX REVENUE. Not later than the 30th
  day after notice from the office, the comptroller, at the direction
  of the office, shall transfer to the trust fund a portion of the
  state tax revenue in an amount equal to 25 percent of the amount of
  incremental increases in tax receipts determined under Section
  482.0101.
         Sec. 482.0153.  INTEREST. Any interest accumulated over
  time shall remain in the trust fund for use by the office in paying
  the costs of administering the trust fund. The office may disburse
  all or part of the retained interest in the trust fund to the office
  for that purpose.
  SUBCHAPTER E. DISBURSEMENTS FROM TRUST FUND
         Sec. 482.0201.  DISBURSEMENT WITHOUT APPROPRIATION. Money
  in the trust fund may be disbursed by the office without
  appropriation only as provided by this chapter. 
         Sec. 482.0202.  REBATE DISBURSEMENT FROM TRUST FUND. In
  accordance with procedures adopted by the office, the office shall
  make a disbursement from the trust fund to a film or television
  production organization in an amount equal to 25 percent of the
  incremental increase in the tax receipts determined under Section
  482.0101 for the applicable film or television production.
  SUBCHAPTER F.  MULTIPLE FUNDING REQUESTS
         Sec. 482.0251.  APPLICABILITY OF LAW TO MULTIPLE FUNDING
  REQUESTS. (a) The provisions within this chapter are cumulative of
  all other existing incentive programs or any program created in the
  future. Subject to Subsection (b), a person may receive a
  reimbursement, disbursement, or rebate under one or more incentive
  programs. 
         (b)  Notwithstanding Subsection (a), a person may not
  receive a reimbursement, disbursement, or rebate under Chapters
  478, 480A, or this chapter that exceeds the highest incremental
  increase in receipts to this state from taxes imposed under
  Chapters 151, 152, 156, and 183, Tax Code, and under Title 5,
  Alcoholic Beverage Code, as determined by the office, in the market
  area designated by the office.
         (c)  A person may receive one or more reimbursements,
  disbursements, and rebates under Chapters 478 and 480A and this
  chapter in addition to a grant awarded under Chapter 485. 
         SECTION 8.  Section 485A.002, Government Code, is amended by
  amending Subdivisions (1) and (4) and adding Subdivision (1-a) to
  read as follows:
               (1)  "Institution of higher education" has the meaning
  assigned by Section 61.003, Education Code.
               (1-a)  "Media production facility" means a structure,
  building, or room used for the specific purpose of creating a moving
  image project.  The term includes but is not limited to:
                     (A)  a soundstage and scoring stage;
                     (B)  a production office;
                     (C)  an editing facility, an animation production
  facility, and a video game production facility;
                     (D)  a storage and construction space; [and]
                     (E)  a sound recording studio and motion capture
  studio; and
                     (F)  a virtual production facility.
               (4)  "Nominating body" means the governing body of a
  municipality, [or] county, or institution of higher education, or a
  combination of the governing bodies of municipalities, [or]
  counties, or institutions of higher education that:
                     (A)  recognizes a qualified area as a media
  production development zone; and
                     (B)  nominates and applies for designation of a
  location in a media production development zone as a qualified
  media production location.
         SECTION 9.  Section 485A.101, Government Code, is amended to
  read as follows:
         Sec. 485A.101.  CRITERIA FOR MEDIA PRODUCTION DEVELOPMENT
  ZONE RECOGNITION.  To be approved as a media production development
  zone, an area:
               (1)  must be in a metropolitan statistical area, the
  principal municipality of which[:
                     [(A)  has a population of more than 250,000; and
                     [(B)]  has the adequate workforce,
  infrastructure, facilities, or resources to support the production
  and completion of moving image projects;
               (2)  must be recognized as a media production
  development zone by:
                     (A)  ordinance or order, as appropriate, of the
  governing body of a municipality or the commissioners court of a
  county; or
                     (B)  resolution or order of an institution of
  higher education; and
               (3)  will contain a qualified media production location
  within its geographical boundaries that meets the criteria under
  Section 485A.102.
         SECTION 10.  Section 485A.104(a), Government Code, is
  amended to read as follows:
         (a)  The governing body of a municipality, [or] county, or
  institution of higher education individually or in combination with
  other municipalities, [or] counties, or institutions of higher
  education, by ordinance, resolution, or order, as appropriate, may
  nominate as a qualified media production location a location within
  its jurisdiction that meets the criteria under Section 485A.102.
         SECTION 11.  Section 485A.105, Government Code, is amended
  to read as follows:
         Sec. 485A.105.  NOMINATING ORDINANCE, RESOLUTION, OR ORDER.
  An ordinance, resolution, or order nominating a location as a
  qualified media production location must:
               (1)  describe precisely both the media production
  development zone in which the location is to be included and the
  proposed location by a legal description or reference to municipal
  or county boundaries;
               (2)  state a finding that the location meets the
  requirements of this chapter and that the media production
  development zone in which the location is to be included has been
  recognized as a zone by ordinance, resolution, or order, as
  appropriate, by the nominating body;
               (3)  summarize briefly the local financial incentives,
  including tax incentives, that, at the election of the nominating
  body, will apply to a qualified person;
               (4)  contain a brief description of the project or
  activity to be conducted by a qualified person at the location;
               (5)  nominate the location as a qualified media
  production location; and
               (6)  contain an economic impact analysis from an
  economic expert.
         SECTION 12.  Section 485A.106(b), Government Code, is
  amended to read as follows:
         (b)  The application must include:
               (1)  a certified copy of the ordinance, resolution, or
  order, as appropriate, nominating the location as a media
  production location;
               (2)  a certified copy of the ordinance, resolution, or
  order, as appropriate, recognizing the zone in which the location
  is to be included as a media production development zone;
               (3)  appropriate supporting documents demonstrating
  that the location qualifies for designation as a qualified media
  production location;
               (4)  an estimate of the economic impact of the
  designation of the location as a qualified media production
  location on the revenues of the governmental entity or entities
  nominating the location as a qualified media production location,
  considering the financial incentives and benefits contemplated;
               (5)  an economic impact analysis of the proposed
  project or activities to be conducted at the proposed qualified
  media production location, which must include:
                     (A)  an estimate of the amount of revenue to be
  generated to the state by the project or activity;
                     (B)  an estimate of any secondary economic
  benefits to be generated by the project or activity;
                     (C)  an estimate of the amount of state taxes to be
  exempted, as provided by Section 151.3415, Tax Code; and
                     (D)  any other information required by the
  comptroller for purposes of making the certification required by
  Section 485A.109(b); and
               (6)  any additional information the office requires.
         SECTION 13.  Section 485A.110(a), Government Code, is
  amended to read as follows:
         (a)  The office shall deny an application for the designation
  of a qualified media production location if:
               (1)  the  office determines that the nominated
  location does not satisfy the criteria under Section 485A.102; or
               (2)  [the office determines that the number of media
  production location designations or number of approved media
  production development zones at the time of the application are at
  the maximum limit prescribed by Section 485A.103; or
               [(3)]  the comptroller has not certified that the
  proposed project or activity to be conducted at the location will
  have a positive impact on state revenue.
         SECTION 14.  Section 485A.111(b), Government Code, is
  amended to read as follows:
         (b)  A location may be designated as a qualified media
  production location, and may be eligible for the sales and use tax
  exemption as provided by Section 151.3415, Tax Code, for a maximum
  of four [two] years, notwithstanding Section 151.3415, Tax Code.
         SECTION 15.  Section 485A.203, Government Code, is amended
  to read as follows:
         Sec. 485A.203.  DURATION OF DESIGNATION.  Except as
  provided by Section 485A.204, the office's certification of a
  person as a qualified person is effective until the fourth [second]
  anniversary of the date the designation is made, regardless of
  whether the designation of the qualified media production location
  at which the qualified person is to perform its commitments under
  this chapter is terminated before that date.
         SECTION 16.  Subchapter F, Chapter 485A, Government Code, is
  amended by adding Section 485A.253 to read as follows:
         Sec. 485A.253.  ENTITLEMENT BENEFITS FOR MEDIA PRODUCTION
  FACILITY CONSTRUCTION. Notwithstanding any other provision of this
  chapter, a media production facility or any qualified person is
  entitled to the benefits under this chapter for construction of a
  media production facility that begins on or after January 1, 2023.
         SECTION 17.  Section 485A.103, Government Code, is repealed.
         SECTION 18.  To the extent of any conflict, this Act prevails
  over another Act of the 88th Legislature, Regular Session, 2023,
  relating to nonsubstantive additions to and corrections in enacted
  codes.
         SECTION 19.  This Act takes effect September 1, 2023.