88R13065 LRM-D     By: Miles S.B. No. 1459       A BILL TO BE ENTITLED   AN ACT   relating to benefits and incentives for media production in this   state.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 485A.002(3), Government Code, is amended   to read as follows:                (3)  "Moving image project" means a visual and sound   production, including a film, a television program, streaming   content, a national or multistate commercial, or a digital   interactive media production. The term does not include a   production that is obscene, as defined by Section 43.21, Penal   Code.          SECTION 2.  Chapter 485A, Government Code, is amended by   adding Subchapter G to read as follows:   SUBCHAPTER G. MEDIA PRODUCTION FACILITY INCENTIVE PROGRAM          Sec. 485A.301.  DEFINITIONS. In this subchapter:                (1)  "In-state construction spending" means the amount   of money spent by a production company on the acquisition,   construction, conversion, renovation, or lease of a media   production facility.                (2)  "Production company" has the meaning assigned by   Section 485.021.          Sec. 485A.302.  MEDIA 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:                (1)  construct media production facilities at a   qualified media production location; or                (2)  convert existing buildings or structures into   media production facilities at a qualified media production   location.          (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 or conversion 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)  A production company is not required to reapply for a   grant under this subchapter for each year of the 10-year period   described by Section 485A.303(2).          (d)  The office may accept gifts, grants, and donations for   the purpose of implementing this subchapter.          Sec. 485A.303.  QUALIFICATION. To qualify for a media   production facility grant under this subchapter, a production   company must:                (1)  be a:                      (A)  limited liability company, partnership, or   corporation formed or organized under the laws of this state; or                      (B)  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; and                (2)  commit to either constructing a media production   facility or converting an existing building or structure into a   media production facility and producing moving image projects for a   10-year period.          Sec. 485A.304.  GRANT. The amount of a media 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. 485A.305.  ADDITIONAL GRANT FOR UNDERUTILIZED AND   ECONOMICALLY DISTRESSED AREAS. In addition to the grants   calculated under Sections 485A.304 and 485A.306, a production   company that constructs a media production facility or converts an   existing building or structure into a media 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. 485A.306.  ADDITIONAL GRANT FOR CERTAIN MEDIA   PRODUCTION FACILITIES. (a) In addition to the grants calculated   under Sections 485A.304 and 485A.305, a production company is   eligible for an additional grant in an amount equal to 7.5 percent   of the total amount of the company's in-state construction spending   for a media production facility if:                (1)  the company constructs the facility or converts   the building or structure to produce projects with a focus on   persons from diverse ethnic backgrounds; and                (2)  at least 35 percent of the persons employed at the   facility are women or 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 3.  This Act takes effect September 1, 2023.