Bill Text: TX HB2418 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to incentives for the moving image industry in this state.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-16 - Referred to Culture, Recreation & Tourism [HB2418 Detail]
Download: Texas-2021-HB2418-Introduced.html
87R4717 MTB-D | ||
By: Gervin-Hawkins | H.B. No. 2418 |
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relating to incentives for the moving image industry in this state. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 485.021(1), Government Code, is amended | ||
to read as follows: | ||
(1) "In-state spending" means the amount of money | ||
spent in Texas by a production company during the production and | ||
completion of a moving image project, including the amount spent on | ||
wages [ |
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SECTION 2. Section 485.022, Government Code, is amended by | ||
amending Subsection (b) and adding Subsection (g) to read as | ||
follows: | ||
(b) The office shall develop a procedure for the submission | ||
of grant applications and the awarding of grants under this | ||
subchapter. The procedure must include provisions relating to[ |
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[ |
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[ |
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production of a moving image project begins, of: | ||
(1) [ |
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(2) [ |
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applicable; | ||
(3) [ |
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production crew during the production and completion of a moving | ||
image project; and | ||
(4) [ |
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necessary by the office for an adequate and accurate analysis of a | ||
production company's in-state spending. | ||
(g) Notwithstanding Subsection (b), a production company is | ||
eligible for a grant under this subchapter and is not required to | ||
submit an application for a grant if the company produces moving | ||
image projects that meet the qualification requirements of Section | ||
485.023 at a production facility located in this state that is owned | ||
by the company or a parent, subsidiary, or affiliate of the company. | ||
A production company shall notify the office of the company's | ||
eligibility under this subsection. | ||
SECTION 3. Section 485.023, Government Code, is amended to | ||
read as follows: | ||
Sec. 485.023. QUALIFICATION. To qualify for a grant under | ||
this subchapter: | ||
(1) a production company must have spent a minimum of: | ||
(A) $250,000 in in-state spending for a film or | ||
television program; or | ||
(B) $100,000 in in-state spending for a | ||
commercial or series of commercials, an educational or | ||
instructional video or series of educational or instructional | ||
videos, or a digital interactive media production; | ||
(2) at least 50 [ |
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actors, and extras for a moving image project must be paid for their | ||
services on the project [ |
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(3) [ |
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[ |
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an expended budget, in a format prescribed by the office, that | ||
reflects all in-state spending and includes all receipts, invoices, | ||
pay orders, and other documentation considered necessary by the | ||
office to accurately determine the amount of a production company's | ||
in-state spending that has occurred. | ||
SECTION 4. Section 485.024, Government Code, is amended by | ||
amending Subsection (a) and adding Subsection (a-1) to read as | ||
follows: | ||
(a) Except as provided by Section 485.025, the amount of a | ||
grant under this subchapter is as follows: | ||
(1) five percent of in-state spending on a moving | ||
image project if the production company spent at least $250,000 but | ||
less than $1 million on the project; | ||
(2) 10 percent of in-state spending on a moving image | ||
project if the production company spent at least $1 million but less | ||
than $3.5 million on the project; or | ||
(3) notwithstanding Subdivisions (1) and (2), 22.5 | ||
percent of in-state spending on a moving image project if at least | ||
50 percent of the production crew, actors, and extras for the | ||
project are from diverse ethnic backgrounds [ |
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(a-1) The office shall adopt rules prescribing the method | ||
the office will use to calculate the amount of a grant under this | ||
section, including the method by which the office will determine | ||
whether the production crew, actors, and extras for a moving image | ||
project meet the requirement of Subsection (a)(3) [ |
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SECTION 5. Section 485.025, Government Code, is amended to | ||
read as follows: | ||
Sec. 485.025. ADDITIONAL GRANT FOR UNDERUTILIZED AND | ||
ECONOMICALLY DISTRESSED AREAS. In addition to the grants [ |
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calculated under Sections [ |
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production company that spends at least 25 percent of a moving image | ||
project's filming days in an underutilized and economically | ||
distressed area is eligible for an additional grant in an amount | ||
equal to 7.5 [ |
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company's in-state spending for the moving image project. | ||
SECTION 6. Subchapter B, Chapter 485, Government Code, is | ||
amended by adding Section 485.0255 to read as follows: | ||
Sec. 485.0255. ADDITIONAL PRODUCTION CREW GRANT. (a) In | ||
addition to the grants calculated under Sections 485.024(a)(1) and | ||
(2) and Section 485.025, if at least 50 percent of the production | ||
crew, actors, and extras for a moving image project are from diverse | ||
ethnic backgrounds, the production company is eligible for an | ||
additional grant in an amount equal to 2.5 percent of the total | ||
amount of the production company's in-state spending for the | ||
project. | ||
(b) The office shall adopt rules prescribing the method by | ||
which the office will determine whether a production company meets | ||
the requirement for an additional grant under this section. | ||
SECTION 7. Chapter 485, Government Code, is amended by | ||
adding Subchapter C to read as follows: | ||
SUBCHAPTER C. MOVING IMAGE PRODUCTION FACILITY INCENTIVE PROGRAM | ||
Sec. 485.041. DEFINITIONS. In this subchapter: | ||
(1) "In-state construction spending" means the amount | ||
of money spent by a production company on the acquisition, | ||
construction, renovation, or lease of a production facility in this | ||
state. | ||
(2) "Production company" has the meaning assigned by | ||
Section 485.021. | ||
(3) "Production facility" means a facility and related | ||
equipment that produce films, television programs, including | ||
reality-based television programs, digital interactive media, | ||
video games, or visual effects projects. | ||
Sec. 485.042. MOVING IMAGE PRODUCTION FACILITY INCENTIVE | ||
PROGRAM. (a) Using gifts, grants, donations, and appropriations | ||
made available to the office for that purpose, the office shall | ||
administer a grant program for production companies that construct | ||
production facilities in this state. | ||
(b) The office shall develop a procedure for the submission | ||
of grant applications and the awarding of grants under this | ||
subchapter. The procedure must include: | ||
(1) requirements for the submission, before facility | ||
construction begins, of an estimate of total in-state construction | ||
spending; and | ||
(2) provisions relating to the submission of other | ||
information considered useful and necessary by the office for an | ||
adequate and accurate analysis of a production company's | ||
qualifications for a grant under this subchapter. | ||
(c) The office may accept gifts, grants, and donations for | ||
the purpose of implementing this subchapter. | ||
Sec. 485.043. QUALIFICATION. To qualify for a production | ||
facility grant under this subchapter, a production company must be | ||
a: | ||
(1) limited liability company, partnership, or | ||
corporation formed or organized under the laws of this state; or | ||
(2) joint venture or other legal entity in which at | ||
least one entity that holds at least a 30 percent ownership interest | ||
is a limited liability company, partnership, or corporation formed | ||
or organized under the laws of this state. | ||
Sec. 485.044. GRANT. The amount of a production facility | ||
grant under this subchapter is determined as follows: | ||
(1) if the production company spent at least $2 | ||
million but less than $4 million on the facility, the amount of the | ||
grant is equal to 10 percent of in-state construction spending on | ||
the facility; or | ||
(2) if the production company spent at least $4 | ||
million on the facility, the amount of the grant is equal to 20 | ||
percent of in-state construction spending on the facility. | ||
Sec. 485.045. ADDITIONAL GRANT FOR UNDERUTILIZED AND | ||
ECONOMICALLY DISTRESSED AREAS. In addition to the grants | ||
calculated under Sections 485.044 and 485.046, a production company | ||
that constructs a production facility in an underutilized and | ||
economically distressed area is eligible for an additional grant in | ||
an amount equal to 7.5 percent of the total amount of the production | ||
company's in-state construction spending for the facility. | ||
Sec. 485.046. ADDITIONAL GRANT FOR CERTAIN PRODUCTION | ||
FACILITIES. (a) In addition to the grants calculated under | ||
Sections 485.044 and 485.045, a production company is eligible for | ||
an additional grant in an amount equal to 2.5 percent of the total | ||
amount of the company's in-state construction spending for a | ||
production facility if: | ||
(1) the company constructs the facility to produce | ||
projects with a primary focus on persons from diverse ethnic | ||
backgrounds; and | ||
(2) at least 25 percent of the persons employed at the | ||
facility are from diverse ethnic backgrounds. | ||
(b) The office shall adopt rules prescribing the method by | ||
which the office will determine whether a production company meets | ||
the requirements for an additional grant under this section. | ||
SECTION 8. The following provisions of the Government Code | ||
are repealed: | ||
(1) Section 485.021(4); and | ||
(2) Section 485.024(b). | ||
SECTION 9. The changes in law made by this Act to Chapter | ||
485, Government Code, apply only to a grant awarded on or after the | ||
effective date of this Act. A grant awarded before the effective | ||
date of this Act is governed by the law in effect on the date the | ||
award was made, and the former law is continued in effect for that | ||
purpose. | ||
SECTION 10. This Act takes effect September 1, 2021. |