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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas moving image industry incentive program and |
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the establishment and funding of the Texas moving image industry |
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incentive fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. LEGISLATIVE INTENT |
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SECTION 1.01. It is the intent of the legislature that no |
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Texas moving image industry incentive program grants be used to |
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fund inappropriate content or content that portrays Texas or Texans |
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in a negative fashion and that moving image projects funded under |
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the program conform to general standards of decency and respect the |
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diverse beliefs and values of the citizens of Texas. |
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ARTICLE 2. TEXAS MOVING IMAGE INDUSTRY INCENTIVE PROGRAM; FUND |
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SECTION 2.01. Section 485.021, Government Code, is amended |
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by adding Subdivision (1-a) to read as follows: |
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(1-a) "Incentive fund" means the Texas moving image |
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industry incentive fund established under Section 485.0225. |
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SECTION 2.02. Section 485.022, Government Code, is amended |
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by amending Subsections (a) and (f) and adding Subsections (g) and |
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(h) to read as follows: |
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(a) The office shall administer a grant program for |
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production companies that produce moving image projects in this |
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state: |
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(1) using money from the incentive fund; or |
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(2) [,] to the extent that gifts, grants, donations, |
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or other money, including appropriations, are made available to the |
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office for that purpose. |
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(f) The following types of projects are not eligible for |
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grants under this subchapter: |
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(1) pornography or obscene material, as defined by |
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Section 43.21, Penal Code; |
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(2) news, current event or public access programming, |
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political advertising, including public service announcements that |
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advance a public policy or political position, or programs that |
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include weather or market reports; |
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(3) local events or religious services; |
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(4) productions not intended for commercial, |
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educational, or instructional distribution; |
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(5) sporting events or activities; |
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(6) awards shows, galas, or telethons and similar |
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programs that solicit funds; |
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(7) projects intended for undergraduate or graduate |
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course credit; |
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(8) application software, system software, or |
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middleware; |
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(9) casino-type video games and interactive digital |
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media experiences used in a gambling device, as defined by Section |
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47.01, Penal Code; or |
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(10) commercials or advertising for this state or any |
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agency or department of this state. |
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(g) As part of the preliminary application process [Before a |
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grant is awarded under this subchapter], the office shall review |
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the proposed content of a moving image project in the manner |
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provided by office rule and advise the prospective applicant |
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whether the content will preclude the project from receiving a |
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grant under this subchapter. |
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(h) Once an approved project has been completed, the office |
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shall review the final content before issuing the grant payment to |
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[: |
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[(1) require a copy of the final script; and |
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[(2)] determine if any substantial changes occurred |
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during production on a moving image project to include content |
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described by Subsection (e) or (f). |
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SECTION 2.03. Subchapter B, Chapter 485, Government Code, |
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is amended by adding Section 485.0225 to read as follows: |
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Sec. 485.0225. TEXAS MOVING IMAGE INDUSTRY INCENTIVE FUND. |
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(a) In this section, "trust company" means the Texas Treasury |
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Safekeeping Trust Company. |
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(b) The Texas moving image industry incentive fund is |
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established as a fund outside the state treasury to be held and |
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invested by the trust company and administered by the office. |
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(c) Money in the incentive fund may be spent without |
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legislative appropriation and may be used only for the purposes of |
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awarding grants under this subchapter and paying the trust |
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company's expenses of managing the incentive fund's assets. |
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(d) The incentive fund consists of: |
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(1) money appropriated, transferred, or deposited to |
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the credit of the incentive fund by the legislature; |
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(2) money, including the proceeds of a fee or tax |
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imposed by this state, that by statute is dedicated for deposit to |
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the credit of the incentive fund; |
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(3) investment earnings and interest earned on amounts |
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credited to the incentive fund; and |
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(4) gifts, grants, and donations made to the office |
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and deposited to the credit of the incentive fund. |
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(e) The trust company shall hold and invest the incentive |
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fund. The incentive fund may be invested with the state treasury |
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pool and may be pooled with other state assets for purposes of |
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investment. |
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(f) The overall objective for the investment of the |
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incentive fund is to maintain sufficient liquidity to meet the |
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needs of the incentive fund while striving to preserve the |
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purchasing power of the incentive fund over a full economic cycle. |
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(g) The trust company may acquire, exchange, sell, |
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supervise, manage, or retain any kind of investment that a prudent |
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investor, exercising reasonable care, skill, and caution, would |
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acquire or retain in light of the purposes, terms, distribution |
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requirements, and other circumstances of the incentive fund then |
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prevailing, taking into consideration the investment of all the |
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assets of the incentive fund rather than a single investment. |
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(h) The expenses of managing the incentive fund's assets |
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shall be paid from the incentive fund. |
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(i) The office annually shall provide to the trust company a |
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forecast of the cash flows into and out of the incentive fund. The |
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office shall provide updates to the forecast as appropriate to |
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ensure the trust company is able to achieve the objective specified |
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by Subsection (f). |
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(j) The trust company shall disburse money from the |
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incentive fund as directed by the office. The office may direct one |
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or more disbursements from the incentive fund no more frequently |
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than twice in any state fiscal year. |
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SECTION 2.04. Section 485.023, Government Code, is amended |
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to read as follows: |
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Sec. 485.023. QUALIFICATION. To qualify for a grant under |
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this subchapter: |
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(1) a production company must have spent a minimum of: |
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(A) $500,000 [$250,000] in in-state spending for |
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a film or television program; or |
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(B) $100,000 in in-state spending for a |
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commercial or series of commercials, an educational or |
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instructional video or series of educational or instructional |
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videos, or a digital interactive media production; |
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(2) [at least 55 percent of the production crew, |
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actors, and extras for a moving image project must be Texas |
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residents] unless the office determines and certifies in writing |
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that a sufficient number of qualified crew, actors, and extras are |
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not available to the company at the time principal photography |
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begins, the percentage of the production crew, actors, and extras |
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for a moving image project who are Texas residents must be at least: |
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(A) 35 percent for a moving image project that |
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begins principal photography on or after September 1, 2025, and |
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before September 1, 2027; |
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(B) 40 percent for a moving image project that |
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begins principal photography on or after September 1, 2027, and |
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before September 1, 2029; |
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(C) 45 percent for a moving image project that |
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begins principal photography on or after September 1, 2029, and |
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before September 1, 2031; and |
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(D) 50 percent for a moving image project that |
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begins principal photography on or after September 1, 2031; |
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(3) at least 60 percent of the moving image project |
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must be filmed in Texas; and |
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(4) a production company must submit to the office an |
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expended budget, in a format prescribed by the office, that |
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reflects all in-state spending and includes all receipts, invoices, |
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pay orders, and other documentation considered necessary by the |
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office to accurately determine the amount of a production company's |
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in-state spending that has occurred. |
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SECTION 2.05. Sections 485.024(a) and (c), Government Code, |
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are amended to read as follows: |
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(a) Except as provided by Section 485.025, for a moving |
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image project that is: |
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(1) a feature film, a television program other than a |
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reality television program, or a visual effects project for a |
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feature film or television program other than a reality television |
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program with total in-state spending of: |
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(A) at least $500,000 but less than $1 million, |
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the amount of a grant under this subchapter is equal to five percent |
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of total in-state spending for the project; |
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(B) at least $1 million but less than $5 million, |
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the amount of a grant under this subchapter is equal to 10 percent |
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of total in-state spending for the project; or |
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(C) at least $5 million, the amount of a grant |
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under this subchapter is equal to 25 percent of total in-state |
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spending for the project; |
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(2) a digital interactive media production with total |
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in-state spending of: |
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(A) at least $100,000 but less than $1 million, |
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the amount of a grant under this subchapter is equal to five percent |
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of total in-state spending for the project; |
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(B) at least $1 million but less than $5 million, |
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the amount of a grant under this subchapter is equal to 10 percent |
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of total in-state spending for the project; or |
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(C) at least $5 million, the amount of a grant |
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under this subchapter is equal to 25 percent of total in-state |
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spending for the project; |
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(3) a reality television program as defined by office |
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rule with total in-state spending of: |
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(A) at least $500,000 but less than $1 million, |
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the amount of a grant under this subchapter is equal to five percent |
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of total in-state spending for the project; or |
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(B) at least $1 million, the amount of a grant |
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under this subchapter is equal to 10 percent of total in-state |
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spending for the project; or |
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(4) a commercial, a series of commercials, an |
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educational or instructional video, a series of educational or |
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instructional videos, or a visual effects project for a commercial, |
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series of commercials, educational or instructional video, or |
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series of educational or instructional videos with total in-state |
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spending of: |
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(A) at least $100,000 but less than $1 million, |
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the amount of a grant under this subchapter is equal to five percent |
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of total in-state spending for the project; or |
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(B) at least $1 million, the amount of a grant |
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under this subchapter is equal to 10 percent of total in-state |
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spending for the project [may not exceed the amount established by |
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office rule. The office shall adopt rules prescribing the method |
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the office will use to calculate the amount of a grant under this |
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subsection. The office shall publish a written summary of the |
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method for determining grants before awarding a grant under this |
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section. The method must consider at a minimum: |
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[(1) the current and likely future effect a moving |
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image project will have on employment, tourism, and economic |
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activity in this state; and |
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[(2) the amount of a production company's in-state |
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spending for a moving image project]. |
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(c) The office may [only] make a grant from the incentive |
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fund or appropriated funds. |
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SECTION 2.06. Section 485.025, Government Code, is amended |
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to read as follows: |
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Sec. 485.025. ADDITIONAL GRANTS [GRANT] FOR CERTAIN |
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PROJECTS [UNDERUTILIZED AND ECONOMICALLY DISTRESSED AREAS]. (a) |
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In addition to the grant calculated under Section 485.024, a |
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production company is eligible for: |
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(1) a Texas heritage grant in an amount equal to 2.5 |
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percent of total in-state spending for a moving image project that |
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qualifies under Subsection (b); |
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(2) a rural filming grant in an amount equal to 2.5 |
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percent of total in-state spending for a moving image project that |
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qualifies under Subsection (c); or |
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(3) a postproduction grant in an amount equal to one |
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percent of total in-state spending for a moving image project that |
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qualifies under Subsection (d). |
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(b) A moving image project qualifies for a Texas heritage |
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grant under Subsection (a)(1) if the project is designated by the |
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office as a Texas heritage project according to rules adopted by the |
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office. The office is not required to designate any moving image |
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project as a Texas heritage project and has sole discretion to make |
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that designation. In determining whether to designate a moving |
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image project as a Texas heritage project, the office shall |
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consider: |
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(1) the project's current and likely future effect on |
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the promotion of family values; or |
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(2) whether the project portrays Texas and Texans in a |
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positive fashion. |
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(c) A moving image project qualifies for a rural filming |
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grant under Subsection (a)(2) if the production company spends at |
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least 35 percent of the project's filming days or man hours, as |
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applicable and as defined by office rule, in a county in this state |
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with a population of 300,000 or less. |
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(d) A moving image project qualifies for a postproduction |
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grant under Subsection (a)(3) if at least 25 percent of the total |
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in-state spending for the project is spent by the production |
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company during postproduction on eligible expenditures as provided |
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by office rule, including expenditures for labor, vendor, and music |
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costs. |
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(e) A moving image project may qualify for and receive more |
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than one additional grant under Subsection (a) [that spends at |
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least 25 percent of a moving image project's filming days 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 2.5 percent of the total |
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amount of the production company's in-state spending for the moving |
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image project]. |
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SECTION 2.07. Section 151.801, Tax Code, is amended by |
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amending Subsection (a) and adding Subsection (g) to read as |
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follows: |
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(a) Except for [the] amounts otherwise allocated under this |
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section [Subsections (b), (c), (c-2), (c-3), and (f)], all proceeds |
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from the collection of the taxes imposed by this chapter shall be |
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deposited to the credit of the general revenue fund. |
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(g) Not later than the 30th day of each state fiscal |
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biennium, the comptroller shall deposit to the credit of the Texas |
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moving image industry incentive fund established under Section |
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485.0225, Government Code, $500 million of the proceeds from the |
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collection of the taxes imposed by this chapter. |
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SECTION 2.08. (a) The Music, Film, Television, and |
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Multimedia Office shall adopt rules necessary to implement and |
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administer Subchapter B, Chapter 485, Government Code, as amended |
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by this article. |
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(b) The comptroller of public accounts may adopt rules |
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necessary to implement and administer Section 485.0225, Government |
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Code, as added by this article. |
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ARTICLE 3. SUNSET PROVISIONS |
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SECTION 3.01. Effective September 1, 2035, Sections |
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485.022(a) and (f), Government Code, are amended to read as |
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follows: |
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(a) The office shall administer a grant program for |
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production companies that produce moving image projects in this |
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state, to the extent that gifts, grants, donations, or other money, |
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including appropriations, are made available to the office for that |
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purpose. |
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(f) Before a grant is awarded under this subchapter, the |
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office shall: |
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(1) require a copy of the final script; and |
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(2) determine if any substantial changes occurred |
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during production on a moving image project to include content |
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described by Subsection (e). |
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SECTION 3.02. Effective September 1, 2035, Section 485.023, |
|
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Government Code, is amended to read as follows: |
|
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Sec. 485.023. QUALIFICATION. To qualify for a grant under |
|
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this subchapter: |
|
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(1) a production company must have spent a minimum of: |
|
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(A) $250,000 in in-state spending for a film or |
|
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television program; or |
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(B) $100,000 in in-state spending for a |
|
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commercial or series of commercials, an educational or |
|
|
instructional video or series of educational or instructional |
|
|
videos, or a digital interactive media production; |
|
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(2) at least 55 percent of the production crew, |
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actors, and extras for a moving image project must be Texas |
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residents unless the office determines and certifies in writing |
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that a sufficient number of qualified crew, actors, and extras are |
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not available to the company at the time principal photography |
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begins; |
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(3) at least 60 percent of the moving image project |
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must be filmed in Texas; and |
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(4) a production company must submit to the office an |
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expended budget, in a format prescribed by the office, that |
|
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reflects all in-state spending and includes all receipts, invoices, |
|
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pay orders, and other documentation considered necessary by the |
|
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office to accurately determine the amount of a production company's |
|
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in-state spending that has occurred. |
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SECTION 3.03. Effective September 1, 2035, Sections |
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485.024(a) and (c), Government Code, are amended to read as |
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follows: |
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(a) Except as provided by Section 485.025, a grant under |
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this subchapter may not exceed the amount established by office |
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rule. The office shall adopt rules prescribing the method the |
|
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office will use to calculate the amount of a grant under this |
|
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subsection. The office shall publish a written summary of the |
|
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method for determining grants before awarding a grant under this |
|
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section. The method must consider at a minimum: |
|
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(1) the current and likely future effect a moving |
|
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image project will have on employment, tourism, and economic |
|
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activity in this state; and |
|
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(2) the amount of a production company's in-state |
|
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spending for a moving image project. |
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(c) The office may only make a grant from appropriated |
|
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funds. |
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SECTION 3.04. Effective September 1, 2035, Section 485.025, |
|
|
Government Code, is amended to read as follows: |
|
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Sec. 485.025. ADDITIONAL GRANT FOR UNDERUTILIZED AND |
|
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ECONOMICALLY DISTRESSED AREAS. In addition to the grant calculated |
|
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under Section 485.024, a production company that spends at least 25 |
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percent of a moving image project's filming days 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 2.5 percent of the total |
|
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amount of the production company's in-state spending for the moving |
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image project. |
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SECTION 3.05. The following provisions added by Article 2 |
|
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of this Act expire on August 31, 2035: |
|
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(1) Section 485.021(1-a), Government Code; |
|
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(2) Sections 485.022(g) and (h), Government Code; |
|
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(3) Section 485.0225, Government Code; and |
|
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(4) Section 151.801(g), Tax Code. |
|
|
SECTION 3.06. (a) On August 31, 2035, the Texas moving |
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image industry incentive fund established under Section 485.0225, |
|
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Government Code, as added by Article 2 of this Act, is abolished and |
|
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the unencumbered and unspent balance of the fund on that date is |
|
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transferred to the general revenue fund. |
|
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(b) Notwithstanding the changes in law made by this article, |
|
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a grant awarded under Subchapter B, Chapter 485, Government Code, |
|
|
on or after September 1, 2025, and before September 1, 2035, is |
|
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governed by that subchapter as amended by Article 2 of this Act and |
|
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any subsequent amendments to that law by the legislature in effect |
|
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on the date the grant is awarded, and that law is continued in |
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effect for that purpose. |
|
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(c) A grant awarded under Subchapter B, Chapter 485, |
|
|
Government Code, on or after September 1, 2035, is governed by that |
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subchapter as amended by this article. |
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ARTICLE 4. EFFECTIVE DATE |
|
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SECTION 4.01. Except as otherwise provided by this Act, |
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this Act takes effect September 1, 2025. |