87R5590 MTB-D     By: Price H.B. No. 2854       A BILL TO BE ENTITLED   AN ACT   relating to the creation of a Texas film and entertainment industry   incentive program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 485, Government Code, is amended by   adding Subchapter C to read as follows:   SUBCHAPTER C. TEXAS FILM AND ENTERTAINMENT INDUSTRY 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 construction of a   production facility in this state.                (2)  "In-state spending" means the amount of money   spent in this state by a production company during the production   and completion of a project.                (3)  "Production company" has the meaning assigned by   Section 485.021.                (4)  "Production facility" means a facility that   produces films, television programs including reality-based   television programs, digital interactive media, commercials, or   educational or instructional videos.                (5)  "Project" means a film, television program   including a reality-based television program, digital interactive   media, commercial, or educational or instructional video   production. The term includes a visual effects project.                (6)  "Underutilized and economically distressed area"   has the meaning assigned by Section 485.021.          Sec. 485.042.  TEXAS FILM AND ENTERTAINMENT INDUSTRY   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:                (1)  produce projects in this state; or                (2)  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 project   production or facility construction begins, of:                      (A)  an estimate of total in-state spending or   in-state construction spending, as applicable; and                      (B)  the estimated number of jobs for cast and   production crew during the production and completion of the   project, if applicable; 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. (a)  To qualify for a   production facility or project production 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.          (b)  To qualify for a production facility grant under this   subchapter, a production company must:                (1)  have spent a minimum of $2.5 million in   constructing a production facility in this state;                (2)  employ at least 15 full-time employees who are   residents of this state; and                (3)  show that at least 80 percent of all services used   in the design and construction of the production facility are   provided by businesses that have their principal place of business   in this state.          (c)  To qualify for a project production grant under this   subchapter, a production company must meet the qualifications for a   grant under Subchapter B as provided by Section 485.023.          Sec. 485.044.  GRANT. (a)  The amount of a production   facility grant under this subchapter is determined as follows:                (1)  if the production company spent at least $2.5   million but less than $5 million on the facility, the amount of the   grant is equal to 10 percent of in-state construction spending on   the facility;                (2)  if the production company spent at least $5   million but less than $10 million on the facility, the amount of the   grant is equal to 20 percent of in-state construction spending on   the facility; or                (3)  if the production company spent at least $10   million on the facility, the amount of the grant is equal to 25   percent of in-state construction spending on the facility.          (b)  The amount of a project production grant under this   subchapter is determined as follows:                (1)  for a film or television program project the   amount of the grant is equal to:                      (A)  10 percent of in-state spending on the   project if the production company spent at least $250,000 but less   than $1 million on the project;                      (B)  20 percent of in-state spending on the   project if the production company spent at least $1 million but less   than $3.5 million on the project; or                      (C)  30 percent of in-state spending on the   project if the production company spent at least $3.5 million on the   project;                (2)  for a digital interactive media project the amount   of the grant is equal to:                      (A)  10 percent of in-state spending on the   project if the production company spent at least $100,000 but less   than $1 million on the project;                      (B)  20 percent of in-state spending on the   project if the production company spent at least $1 million but less   than $3.5 million on the project; or                      (C)  30 percent of in-state spending on the   project if the production company spent at least $3.5 million on the   project;                (3)  notwithstanding Subdivision (1), for a   reality-based television program project the amount of the grant is   equal to:                      (A)  10 percent of in-state spending on the   project if the production company spent at least $250,000 but less   than $1 million on the project; or                      (B)  20 percent of in-state spending on the   project if the production company spent at least $1 million on the   project; and                (4)  for a commercial, educational or instructional   video, or visual effects project the amount of the grant is equal   to:                      (A)  10 percent of in-state spending on the   project if the production company spent at least $100,000 but less   than $1 million on the project; or                      (B)  20 percent of in-state spending on the   project if the production company spent at least $1 million on the   project.          Sec. 485.045.  ADDITIONAL GRANT FOR UNDERUTILIZED AND   ECONOMICALLY DISTRESSED AREAS. (a)  In addition to a grant   calculated under Section 485.044(a), 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 five percent of the total amount of the   production company's in-state construction spending for the   facility.          (b)  In addition to a grant calculated under Section   485.044(b), a production company that produces a project in an   underutilized and economically distressed area is eligible for an   additional grant in an amount equal to five percent of the total   amount of the production company's in-state spending for the   project.          SECTION 2.  This Act takes effect September 1, 2021.