By: Longoria	H.B. No. 3346

	A BILL TO BE ENTITLED
	AN ACT
	relating to the music, film, television, and multimedia production
	industry.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 485.003, Government Code, is amended to
	read as follows:
	Sec. 485.003.  COMMISSIONER [DIRECTOR]; STAFF.  The governor
	may employ a commissioner [director] who may employ other employees
	necessary to carry out the office's duties.
	SECTION 2.  Subchapter A, Chapter 485, Government Code, is
	amended by adding Section 485.008 to read as follows:
	Sec. 485.008.  AUDITS OF MUSIC, FILM, TELEVISION, AND
	MULTIMEDIA FUND.  (a)  The state auditor may conduct effectiveness,
	compliance, and economy or efficiency audits of the music, film,
	television, and multimedia fund. As part of the audits, the state
	auditor may determine whether:
	(1)  money is disbursed in compliance with the
	requirements and purpose of this chapter; and
	(2)  the office monitors grant recipients to determine
	whether the recipients comply with the terms of any applicable
	agreement and with the requirements of this chapter.
	(b)  The office shall cooperate with the state auditor and
	provide the state auditor with access to all records, confidential
	or nonconfidential, necessary to conduct the audits under this
	section.
	SECTION 3.  Section 485.021, Government Code, is amended by
	amending Subdivision (2) and adding Subdivision (6) to read as
	follows:
	(2)  "Moving image project" means a visual and sound
	production, including a film, television program, national or
	multistate commercial, educational or instructional video, or
	digital interactive media production. The term does not include a
	production that:
	(A)  is obscene, as defined by Section 43.21, Penal Code; or
	(B)  the office determines will probably on completion meet
	the qualifications for:
	(i)  an "R" or "NC-17" rating issued by the Motion Picture
	Association of America, as those qualifications existed on
	September 1, 2017; or
	(ii)  an "M" or "A" rating issued by the Entertainment
	Software Rating Board, as those qualifications existed on September
	1, 2017.
	(6)  “Day of production activity” includes any day during
	which a production company incurs an expense that qualifies as
	in-state spending.
	SECTION 4.  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 70 percent of the production crew,
	actors, and extras for a moving image project must be Texas
	residents unless the office determines and certifies in writing
	that a sufficient number of qualified crew, actors, and extras are
	not available to the company at the time principal photography
	begins;
	(3)  at least 60 percent of the moving image project
	must be filmed in Texas; [and]
	(4)  a production company must submit to the office 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 and duration of a
	production company's in-state spending that has occurred; and
	(5)  a production company must have engaged in no fewer
	than 120 days of production activity in Texas.
	SECTION 5.  The change in law made by SECTION 4 of this Act
	applies only to an application for a grant under Section
	485.022(b), Government Code, submitted on or after the effective
	date of this Act. An application submitted before the effective
	date of this Act is governed by the law in effect when the
	application was submitted, and the former law is continued in
	effect for that purpose.
	SECTION 6.  This Act takes effect September 1, 2017.