Bill Text: TX HB4419 | 2023-2024 | 88th Legislature | Engrossed

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Bill Title: Relating to the promotion of film and television production in this state, including the eligibility of film or television productions for funding under the major events reimbursement program, the creation of a film events trust fund and a film production tax rebate trust fund, the establishment of virtual film production institutes, and the designation of media production development zones.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2023-05-10 - Referred to Finance [HB4419 Detail]

Download: Texas-2023-HB4419-Engrossed.html

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By: Goldman, Ashby, Hunter, Morrison, H.B. No. 4419
Collier, et al.

A BILL TO BE ENTITLED
AN ACT
relating to the promotion of film and television production in this
state, including the eligibility of film or television productions
for funding under the major events reimbursement program, the
creation of a film events trust fund and a film production tax
rebate trust fund, the establishment of virtual film production
institutes, and the designation of media production development
zones.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle H, Title 3, Education Code, is amended
by adding Chapter 157 to read as follows:
CHAPTER 157. VIRTUAL FILM PRODUCTION INSTITUTES
Sec. 157.001. DEFINITION. In this chapter, "institute"
means a virtual film production institute established under this
chapter.
Sec. 157.002. ESTABLISHMENT; PURPOSE. Texas A&M University
at College Station and Texas State University may each establish a
virtual film production institute to provide educational
opportunities for students interested in studying virtual film
production and promote student engagement in the development of a
virtual film production industry in this state.
Sec. 157.003. FUNDING. In addition to any amount
appropriated by the legislature, each institute may apply for and
accept gifts, grants, and donations from the federal government or
any other source.
SECTION 2. Section 475.0001, Government Code, is amended by
adding Subdivisions (3-a) and (3-b) to read as follows:
(3-a) "Film or television production" means the
activities necessary to prepare, produce, perform, or present in
this state a television program, movie, virtual film, or any
combination of multimedia program.
(3-b) "Film or television production organization"
means an organization that produces a television program, movie,
virtual film, or multimedia program, regardless of the manner in
which the organization is formed or legally organized. The term
includes a production company, a studio, or a production team for a
television program, movie, virtual film, or multimedia program.
SECTION 3. Section 478.0001(3), Government Code, as amended
by Chapters 10 (H.B. 1472), 102 (S.B. 1265), 605 (S.B. 1155), and
915 (H.B. 3607), Acts of the 87th Legislature, Regular Session,
2021, is reenacted and amended to read as follows:
(3) "Event" means any of the following and includes
any activity related to or associated with the following:
(A) the Academy of Country Music Awards;
(B) the Amateur Athletic Union Junior Olympic
Games;
(C) a Big 12 Football Conference Championship
game;
(D) the Breeders' Cup World Championships;
(E) a game of the College Football Playoff or its
successor;
(F) the Confederation of North, Central America
and Caribbean Association Football (Concacaf) Gold Cup;
(G) [(F)] a CONVRG conference;
(H) [(G)] an Elite Rodeo Association World
Championship;
(I) a film or television production;
(J) [(H)] a Formula One automobile race;
(K) [(I)] the largest event held each year at a
sports entertainment venue in this state with a permanent seating
capacity, including grandstand and premium seating, of at least
125,000 on September 1, 2021;
(L) [(J)] the Major League Baseball All-Star
Game;
(M) [(K)] the Major League Soccer All-Star Game
or the Major League Soccer Cup;
(N) [(L)] a mixed martial arts championship;
(O) [(M)] the Moto Grand Prix of the United
States;
(P) [(N)] the National Association for Stock Car
Auto Racing (NASCAR):
(i) All-Star Race;
(ii) season-ending Championship Race; or
(iii) Texas Grand Prix race;
(Q) [(O)] the National Basketball Association
All-Star Game;
(R) [(P)] a National Collegiate Athletic
Association Final Four tournament game;
(S) [(Q)] the National Collegiate Athletic
Association men's or women's lacrosse championships;
(T) [(R)] a national collegiate championship of
an amateur sport sanctioned by the national governing body of the
sport that is recognized by the United States Olympic Committee;
(U) [(S)] the National Cutting Horse Association
Triple Crown;
(V) [(T)] the National Hockey League All-Star
Game;
(W) the National Hot Rod Association Fall
Nationals at the Texas Motorplex;
(X) [(U)] a national political convention of the
Republican National Committee or the Democratic National
Committee;
(Y) [(V)] a championship event in the National
Reined Cow Horse Association (NRCHA) Championship Series;
(Z) [(W)] an Olympic activity, including a
Junior or Senior activity, training program, or feeder program
sanctioned by the United States Olympic Committee's Community
Olympic Development Program;
(AA) [(X)] a presidential general election
debate;
(BB) [(Y)] the Professional Rodeo Cowboys
Association National Finals Rodeo;
(CC) [(Z)] a Super Bowl;
(DD) [(AA)] the United States Open Championship;
(EE) [(BB)] a World Cup soccer game or the World
Cup soccer tournament;
(FF) [(CC)] the World Games;
(GG) [(DD)] a World Wrestling Entertainment
WrestleMania event; or
(HH) [(EE)] the X Games.
SECTION 4. Section 478.0001(7), Government Code, as amended
by Chapters 10 (H.B. 1472), 102 (S.B. 1265), and 915 (H.B. 3607),
Acts of the 87th Legislature, Regular Session, 2021, is reenacted
and amended to read as follows:
(7) "Site selection organization" means:
(A) the Academy of Country Music;
(B) the Amateur Athletic Union;
(C) the Big 12 Conference;
(D) the College Football Playoff Administration,
LLC, or its successor;
(E) the Commission on Presidential Debates;
(F) the Confederation of North, Central America
and Caribbean Association Football (Concacaf);
(G) [(F)] the Democratic National Committee;
(H) [(G)] Dorna Sports;
(I) [(H)] the Elite Rodeo Association;
(J) [(I)] Encore Live;
(K) [(J)] ESPN or an affiliate;
(L) [(K)] the Federation Internationale de
Football Association (FIFA);
(M) a film or television production
organization;
(N) [(L)] the International World Games
Association;
(O) [(M)] Major League Baseball;
(P) [(N)] Major League Soccer;
(Q) [(O)] the National Association for Stock Car
Auto Racing (NASCAR);
(R) [(P)] the National Basketball Association;
(S) [(Q)] the National Collegiate Athletic
Association;
(T) [(R)] the National Cutting Horse
Association;
(U) [(S)] the National Football League;
(V) [(T)] the National Hockey League;
(W) the National Hot Rod Association;
(X) [(U)] the National Reined Cow Horse
Association (NRCHA);
(Y) [(V)] the Professional Rodeo Cowboys
Association;
(Z) [(W)] the Republican National Committee;
(AA) [(X)] the Ultimate Fighting Championship;
(BB) [(Y)] the United States Golf Association;
(CC) [(Z)] the United States Olympic Committee;
(DD) [(AA)] World Wrestling Entertainment; or
(EE) [(BB)] the national governing body of a
sport that is recognized by:
(i) the Federation Internationale de
l'Automobile;
(ii) Formula One Management Limited;
(iii) the National Thoroughbred Racing
Association; or
(iv) the United States Olympic Committee.
SECTION 5. Section 478.0051, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) Notwithstanding Subsection (b), an event described by
Section 478.0001(3)(I) may receive funding through the program if a
site selection organization selects:
(1) a site in this state as the sole site for the
event;
(2) two or more predetermined locations as the sites
in this state for the event; or
(3) a site in this state as the sole site for the event
in a region composed of this state and one or more adjoining states.
SECTION 6. Subtitle E-1, Title 4, Government Code, is
amended by adding Chapter 480A to read as follows:
CHAPTER 480A. FILM EVENTS TRUST FUND
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 480A.0001. PURPOSE. The purpose of this chapter is to
establish a film events trust fund to maximize the preparation,
production, performance, or presentation of television programs,
movies, virtual films, and multimedia productions in this state and
for successful competition with other states for those programs,
movies, films, and productions.
Sec. 480A.0002. DEFINITIONS. In this chapter:
(1) "Endorsing county" means a county that contains a
site selected by a site selection organization for a film event.
(2) "Endorsing entity" means a local organizing
committee, endorsing county, or endorsing municipality.
(3) "Endorsing municipality" means a municipality
that contains a site selected by a site selection organization for a
film event.
(4) "Event support contract" means a joinder
undertaking, a joinder agreement, or a similar contract executed by
a site selection organization and a local organizing committee, an
endorsing municipality, or an endorsing county for a film event.
(5) "Film event" includes the activities necessary to
prepare, produce, perform, or present in this state a television
program, movie, virtual film, or any combination of multimedia
programs or a series of television programs, movies, virtual films,
or multimedia programs, for which an endorsing entity seeks
approval from a site selection organization to conduct those
activities at a site in this state. The term includes any activity
related to or associated with the preparation, production,
performance, or presentation.
(6) "Local organizing committee" means a nonprofit
corporation or the corporation's successor in interest that is
authorized by an endorsing municipality or endorsing county to:
(A) pursue an application and bid on the
applicant's behalf to a site selection organization for selection
as the site of a film event; or
(B) execute an agreement with a site selection
organization regarding a bid to host a film event.
(7) "Office" means the Texas Economic Development and
Tourism Office.
(8) "Site" includes one or more sites in this state at
which a film event is held.
(9) "Site selection organization" means a film or
television organization that conducts or considers conducting in
this state a film event eligible under Section 480A.0051.
Sec. 480A.0003. RULES. (a) The office may adopt rules
necessary to implement this chapter.
(b) The rules adopted under this section must be prescribed
and applied to promote the purpose of this chapter, as provided by
Section 480A.0001.
(c) The office may adopt rules necessary to accommodate a
film event that occurs over multiple days, weeks, or years, and in
multiple locations across this state. Notwithstanding any other
law, to the extent of a conflict between a rule adopted by the
office to accomplish the purposes of this subsection and another
provision of this chapter, the rule controls.
Sec. 480A.0004. CONSTRUCTION OF CHAPTER. (a) This chapter
may not be construed as creating or requiring a state guarantee of
an obligation imposed on an endorsing municipality, an endorsing
county, or this state under an event support contract or another
agreement relating to hosting a film event in this state.
(b) This chapter shall be construed and applied to
effectuate the purpose of this chapter.
SUBCHAPTER B. ELIGIBILITY
Sec. 480A.0051. FILM EVENTS ELIGIBLE FOR FUNDING. (a) A
film event is eligible for funding under this chapter only if:
(1) a site selection organization, after conducting a
highly competitive selection process of one or more sites not in
this state, selects a site in this state for the film event to be
held:
(A) one time; or
(B) if the film event is scheduled under an event
contract or event support contract to be held each year for a period
of years, one time in each year; and
(2) a site selection organization selects:
(A) a site in this state as the sole site for the
film event;
(B) two or more locations as the sites in this
state for the film event; or
(C) a site in this state as the sole site for the
film event in a region composed of this state and one or more
adjoining states.
(b) During the period in which a film event eligible under
this section is held in this state, a site selection organization
may select additional sites for the film event.
Sec. 480A.0052. LIMITATIONS ON CERTAIN FUNDING REQUESTS.
(a) This section applies only to a film event for which the office
determines under Section 480A.0102 that the total incremental
increase in tax receipts is less than $5 million.
(b) An endorsing municipality or endorsing county may
during any 12-month period submit requests for funding under this
chapter for not more than 30 film events to which this section
applies.
SUBCHAPTER C. STATE ACTIONS RELATING TO FILM EVENTS
Sec. 480A.0101. PREREQUISITES FOR OFFICE ACTION. The
office may not undertake any duty imposed by this chapter unless:
(1) an endorsing entity submits a request for funding
under this chapter; and
(2) the request is accompanied by documentation from a
site selection organization selecting the site for the film event.
Sec. 480A.0102. DETERMINATION OF INCREMENTAL INCREASE IN
CERTAIN TAX RECEIPTS. (a) After a site selection organization
selects a site for a film event in this state in accordance with an
application by an endorsing entity, the office shall determine the
incremental increases in the following tax receipts that the office
determines are directly attributable to the film event for the
30-day period that ends at the end of the day after the date on which
the film event activities in this state are completed or, if the
film event will be presented on more than one day, after the last
date on which the film event will be presented:
(1) the receipts to this state from taxes imposed
under Chapters 151, 152, 156, and 183, Tax Code, and under Title 5,
Alcoholic Beverage Code, in the market areas designated under
Section 480A.0104;
(2) the receipts collected by this state for each
endorsing municipality in the market area from the sales and use tax
imposed by each endorsing municipality under Section 321.101(a),
Tax Code, and the mixed beverage tax revenue to be received by each
endorsing municipality under Section 183.051(b), Tax Code;
(3) the receipts collected by this state for each
endorsing county in the market area from the sales and use tax
imposed by each endorsing county under Section 323.101(a), Tax
Code, and the mixed beverage tax revenue to be received by each
endorsing county under Section 183.051(b), Tax Code;
(4) the receipts collected by each endorsing
municipality in the market area from the hotel occupancy tax
imposed under Chapter 351, Tax Code; and
(5) the receipts collected by each endorsing county in
the market area from the hotel occupancy tax imposed under Chapter
352, Tax Code.
(b) The office shall make the determination required by
Subsection (a) in accordance with procedures the office develops
and shall base that determination on information submitted by an
endorsing entity.
Sec. 480A.0103. TIME FOR DETERMINATION. The office shall
determine the incremental increase in tax receipts under Section
480A.0102 not later than the earlier of:
(1) the 30th day after the date the office receives the
information for a film event submitted by an endorsing entity on
which the office bases the determination as provided by Section
480A.0102(b); or
(2) one month before the date scheduled for
commencement of preparation, production, performance, or
presentation of the film event.
Sec. 480A.0104. DESIGNATION OF MARKET AREA. (a) For
purposes of Section 480A.0102(a)(1), the office shall designate as
a market area for a film event each area in which the office
determines there is a reasonable likelihood of measurable economic
impact directly attributable to the preparation, production,
performance, or presentation of the film event. The office shall
include areas likely to provide venues, accommodations, and
services in connection with the film event based on the proposal the
endorsing entity provides to the office.
(b) The office shall determine the geographic boundaries of
each market area.
(c) An endorsing municipality or endorsing county selected
as the site for the film event must be included in a market area for
the film event.
(d) The office may amend the market area for a film event
eligible under this section during the period in which the film
event is held.
Sec. 480A.0105. ESTIMATE OF TAX REVENUE CREDITED TO FUND.
(a) Not later than one month before the first date scheduled for
commencement of preparation, production, performance, or
presentation of a film event, the office shall provide an estimate
of the total amount of tax revenue that would be transferred or
deposited to the film events trust fund under this chapter in
connection with that film event if the film event were prepared,
produced, performed, or presented in this state at a site selected
in accordance with an application by an endorsing entity. The
office may revise the office's estimate under this subsection
during the period in which the film event is held.
(b) The office shall provide the estimate on request to an
endorsing entity.
(c) An endorsing entity may submit the office's estimate to
a site selection organization.
Sec. 480A.0106. MODEL FILM EVENT SUPPORT CONTRACT AND MODEL
APPLICATION FORM. (a) The office may adopt a model film event
support contract and a model application form. If the office adopts
a contract or form under this subsection, the office shall make the
documents available on the office's Internet website.
(b) The office's adoption of a model film event support
contract and model application form under this section does not
require the use of those documents for purposes of this chapter.
SUBCHAPTER D. FUND ESTABLISHMENT AND CONTRIBUTIONS
Sec. 480A.0151. FILM EVENTS TRUST FUND. The film events
trust fund is established outside the state treasury and is held in
trust by the comptroller for administration of this chapter.
Sec. 480A.0152. DEPOSIT OF MUNICIPAL AND COUNTY TAX
REVENUE. (a) Each endorsing municipality or endorsing county
shall remit to the comptroller and the comptroller shall deposit
into a trust fund created by the comptroller, at the direction of
the office, and designated as the film events trust fund the amount
of the municipality's or county's hotel occupancy tax revenue
determined under Section 480A.0102(a)(4) or (5), less any amount of
the revenue that the municipality or county determines is necessary
to meet the obligations of the municipality or county.
(b) The comptroller, at the direction of the office, shall
retain the amount of sales and use tax revenue and mixed beverage
tax revenue determined under Section 480A.0102(a)(2) or (3) from
the amounts otherwise required to be sent to the municipality under
Sections 321.502 and 183.051(b), Tax Code, or to the county under
Sections 323.502 and 183.051(b), Tax Code, less any amount of the
revenue that the municipality or county determines is necessary to
meet the obligations of the municipality or county, and shall
deposit the retained tax revenue to the film events trust fund.
(c) The comptroller shall begin retaining and depositing
the municipal and county tax revenue:
(1) with the first distribution of that tax revenue
that occurs after the first day of the period described by Section
480A.0102(a); or
(2) at a time the office otherwise determines to be
practicable.
(d) The comptroller shall discontinue retaining the
municipal and county tax revenue when the amount of the applicable
tax revenue determined under Section 480A.0102(a)(2) or (3) has
been retained.
Sec. 480A.0153. OTHER LOCAL MONEY. (a) In lieu of the
municipal and county tax revenues remitted or retained under
Section 480A.0152, an endorsing municipality or endorsing county
may remit to the office for deposit to the film events trust fund
other local money in an amount equal to the total amount of
municipal and county tax revenue determined under Sections
480A.0102(a)(2)-(5).
(b) An endorsing municipality or endorsing county must
remit the other local money not later than the 90th day after the
last day of the period scheduled for the film event.
(c) For purposes of Section 480A.0155, the amount deposited
under this section is considered remitted municipal and county tax
revenue.
Sec. 480A.0154. SURCHARGES AND USER FEES. An endorsing
municipality or endorsing county may collect and remit to the
office any applicable surcharges and user fees attributable to a
film event for deposit to the film events trust fund.
Sec. 480A.0155. STATE TAX REVENUE. (a) The comptroller, at
the direction of the office, shall transfer to the film events trust
fund a portion of the state tax revenue in an amount equal to 6.25
multiplied by the amount of the municipal and county tax revenue
retained or remitted under this chapter, including:
(1) local sales and use tax revenue;
(2) mixed beverage tax revenue;
(3) hotel occupancy tax revenue; and
(4) any applicable surcharge and user fee revenue.
(b) The amount transferred under Subsection (a) may not
exceed the incremental increase in tax receipts determined under
Section 480A.0102(a)(1).
SUBCHAPTER E. DISBURSEMENTS FROM FILM EVENTS TRUST FUND
Sec. 480A.0201. DISBURSEMENT WITHOUT APPROPRIATION. Money
in the film events trust fund may be disbursed by the office without
appropriation only as provided by this chapter.
Sec. 480A.0202. DISBURSEMENT FROM FILM EVENTS TRUST FUND.
(a) After approval of each contributing endorsing municipality and
endorsing county, if any, the office may make a disbursement from
the film events trust fund for a purpose for which an endorsing
entity or this state is obligated under an event support contract,
including any obligation to pay costs incurred in preparing,
producing, performing, or presenting the film event.
(b) In considering whether to make a disbursement from the
film events trust fund, the office may not consider a contingency
clause in an event support contract as relieving an endorsing
entity's obligation to pay a cost under the contract.
(c) If the office makes a disbursement from the film events
trust fund, the office shall satisfy the obligation proportionately
from the local and state revenue in the fund.
Sec. 480A.0203. REDUCTION OF DISBURSEMENT AMOUNT. (a)
After the conclusion of the film event, the office shall compare
information on the number of persons who participated in the film
event as provided under Section 480A.0251 with any estimated number
of persons participating in the film event used to determine the
incremental increase in tax receipts under Section 480A.0102. If
the actual number of persons who participated in the film event is
significantly lower than the estimated number of persons
participating in the film event, the office may reduce the amount of
a disbursement from the film events trust fund for an endorsing
entity:
(1) in proportion to the discrepancy between the
actual and estimated number of persons participating in the film
event; and
(2) in proportion to the amount the entity contributed
to the fund.
(b) The office by rule shall:
(1) define "significantly lower" for purposes of this
section; and
(2) provide the manner in which the office may
proportionately reduce a disbursement.
(c) This section does not affect the remittance under
Section 480A.0207 of any money remaining in the film events trust
fund.
Sec. 480A.0204. ALLOWABLE EXPENSES. (a) Money in the film
events trust fund may be used to:
(1) pay the principal of and interest on notes issued
under Section 480A.0252; and
(2) fulfill obligations of an endorsing municipality,
an endorsing county, or this state to a site selection organization
under an event support contract.
(b) Subject to Sections 480A.0202 and 480A.0205, the
obligations described by Subsection (a)(2) may include the payment
of:
(1) the costs relating to the preparation of the film
event; and
(2) the costs of producing, performing, or presenting
the film event, including costs of an improvement or renovation to
an existing facility and costs of acquisition or construction of a
new facility or other facility that could be used to prepare,
produce, perform, or present film events.
Sec. 480A.0205. LIMITATION ON CERTAIN DISBURSEMENTS. (a)
A disbursement from the film events trust fund is limited to 25
percent of the cost of a structural improvement if an obligation is
incurred under an event support contract to make the improvement or
add the fixture to a site for a film event.
(b) The remainder of an obligation described by Subsection
(a) is not eligible for a disbursement from the film events trust
fund, unless the obligation is for an improvement or fixture for a:
(1) publicly owned facility; or
(2) facility that could be used for future film
events.
Sec. 480A.0206. PROHIBITED DISBURSEMENTS. (a) Subject to
Subsection (b), the office may not make a disbursement from the film
events trust fund that the office determines would be used to:
(1) construct an arena, stadium, or convention center;
or
(2) conduct usual and customary maintenance of a
facility.
(b) Subsection (a) does not prohibit a disbursement from the
film events trust fund for the construction of temporary structures
within an arena, stadium, or convention center that are necessary
for the preparation, production, performance, and presentation of a
film event or temporary maintenance of a facility that is necessary
for the preparation, production, performance, and presentation of a
film event.
Sec. 480A.0207. REMITTANCE OF REMAINING FUND MONEY. On
payment of all municipal, county, or state obligations under an
event support contract related to the location of a film event in
this state, the office shall remit to each endorsing entity, in
proportion to the amount contributed by the entity, any money
remaining in the film events trust fund.
SUBCHAPTER F. LOCAL POWERS AND DUTIES RELATING TO FILM EVENTS
Sec. 480A.0251. REQUIRED INFORMATION. (a) An endorsing
entity shall provide information required by the office to fulfill
the office's duties under this chapter, including:
(1) annual audited statements of any financial records
required by a site selection organization; and
(2) data obtained by the endorsing entity relating to:
(A) the number of persons hired, contracted,
volunteering, or otherwise directly participating in the
preparation, production, performance, or presentation of the film
event, including an estimate of the number of persons expected to
participate in the film event who are not residents of this state;
(B) the economic impact of the film event; and
(C) any other information the office considers
necessary.
(b) An endorsing entity must provide any annual audited
financial statement required by the office not later than the end of
the fourth month after the last day of the period covered by the
financial statement.
Sec. 480A.0252. ISSUANCE OF NOTES. (a) To meet its
obligations under an event support contract to improve, construct,
renovate, or acquire facilities or to acquire equipment, an
endorsing municipality by ordinance or an endorsing county by order
may authorize the issuance of notes.
(b) An endorsing municipality or endorsing county may
provide that the notes be paid from and secured by:
(1) amounts on deposit or amounts to be transferred or
deposited to the film events trust fund; or
(2) surcharges from user fees charged in connection
with the film event, including parking or ticket fees, if the film
event is premiered, performed, or otherwise presented exclusively
at a venue in this state for which parking or ticket fees may be
collected.
(c) A note issued must mature not later than the seventh
anniversary of the date of issuance.
Sec. 480A.0253. PLEDGE OF SURCHARGES TO GUARANTEE
OBLIGATIONS. An endorsing municipality or endorsing county may
guarantee its obligations under an event support contract and this
chapter by pledging, in addition to the tax revenue deposited under
Section 480A.0152, surcharges from user fees charged in connection
with the film event, including parking or ticket fees, if the film
event is premiered, performed, or otherwise presented exclusively
at a venue in this state for which parking or ticket fees may be
collected.
SECTION 7. Subtitle F, Title 4, Government Code, is amended
by adding Chapter 482 to read as follows:
CHAPTER 482. FILM OR TELEVISION PRODUCTION TAX REBATE TRUST FUND
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 482.0001. DEFINITIONS. In this chapter:
(1) "Competitive selection process" means the
competitive selection process established by rule of the office for
a film or television production organization to use in considering
sites for film or television productions.
(2) "Film or television production" means a television
program, movie, virtual film, or any combination of multimedia
programming produced, filmed, performed, or presented wholly or
partly in this state.
(3) "Film or television production organization" has
the meaning assigned by Section 475.0001.
(4) "Office" means the music, film, television, and
multimedia office within the office of the governor.
(5) "Trust fund" means the film production tax rebate
trust fund established under this chapter.
Sec. 482.0002. RULES. (a) The office shall adopt rules
necessary to implement this chapter.
(b) Any rules adopted under this section must be designed
and applied to encourage and incentivize organizations to select a
site in this state to conduct film or television productions.
(c) The office has broad discretion in implementing this
chapter and in adopting rules necessary for that implementation to
allow for the creation of an outstanding and competitive rebate
program to attract film or television productions to this state.
(d) The office may adopt rules necessary to accommodate a
film or television production that occurs over multiple days,
weeks, or years, and in multiple locations across this state.
Notwithstanding any other law, to the extent of a conflict between a
rule adopted by the office to accomplish the purposes of this
subsection and another provision of this chapter, the rule
controls.
SUBCHAPTER B. ELIGIBILITY
Sec. 482.0051. FILM OR TELEVISION PRODUCTIONS ELIGIBLE FOR
FUNDING. A film or television production is eligible for funding
under this chapter only if a film or television production
organization, after conducting a highly competitive selection
process of one or more sites not in this state, selects one or more
sites in this state for all or part of the production.
SUBCHAPTER C. STATE ACTIONS RELATING TO PRODUCTIONS
Sec. 482.0101. DETERMINATION OF INCREMENTAL INCREASE IN
CERTAIN TAX RECEIPTS. After a film or television production
organization selects a site or sites for a film or television
production, the organization shall file an application with the
office and supply information the office considers necessary to
determine the incremental increases in the receipts to this state
from taxes imposed under Chapters 151, 152, 156, and 183, Tax Code,
and under Title 5, Alcoholic Beverage Code, in the market area
designated under Section 482.0103 that the office determines are
directly attributable to the preparation, production, performance,
and presentation of the film or television production.
Sec. 482.0102. TIME FOR DETERMINATION. The office shall
calculate the incremental increase in tax receipts under Section
482.0101 not later than the 60th day after the date the film or
television production organization or its designated agent or
representative submits the necessary documentation to the office to
determine the rebate amount.
Sec. 482.0103. DESIGNATION OF MARKET AREA. For purposes of
Section 482.0101, the office shall designate for the film or
television production a market area where there is a reasonable
likelihood of measurable economic impact directly attributable to
the preparation, production, performance, or presentation of the
production. The office shall include market areas likely to
provide venues, accommodations, and services in connection with the
production based on the application provided to the office.
Sec. 482.0104. MODEL FILM OR TELEVISION PRODUCTION TAX
REBATE APPLICATION. (a) The office may adopt a model film or
television production tax rebate application form. If the office
adopts a model form under this section, the office shall make the
form available on the office's Internet website.
(b) The office's adoption of a model film or television
production tax rebate application form under this section does not
require the use of that form for purposes of this chapter.
SUBCHAPTER D. TRUST FUND ESTABLISHMENT AND CONTRIBUTIONS
Sec. 482.0151. FILM PRODUCTION TAX REBATE TRUST FUND. The
film production tax rebate trust fund is established outside the
state treasury and is held in trust by the comptroller for
administration of this chapter.
Sec. 482.0152. STATE TAX REVENUE. Not later than the 30th
day after notice from the office, the comptroller, at the direction
of the office, shall transfer to the trust fund a portion of the
state tax revenue in an amount equal to 25 percent of the amount of
incremental increases in tax receipts determined under Section
482.0101.
Sec. 482.0153. INTEREST. Any interest accumulated over
time shall remain in the trust fund for use by the office in paying
the costs of administering the trust fund. The office may disburse
all or part of the retained interest in the trust fund to the office
for that purpose.
SUBCHAPTER E. DISBURSEMENTS FROM TRUST FUND
Sec. 482.0201. DISBURSEMENT WITHOUT APPROPRIATION. Money
in the trust fund may be disbursed by the office without
appropriation only as provided by this chapter.
Sec. 482.0202. REBATE DISBURSEMENT FROM TRUST FUND. In
accordance with procedures adopted by the office, the office shall
make a disbursement from the trust fund to a film or television
production organization in an amount equal to 25 percent of the
incremental increase in the tax receipts determined under Section
482.0101 for the applicable film or television production.
SUBCHAPTER F. MULTIPLE FUNDING REQUESTS
Sec. 482.0251. APPLICABILITY OF LAW TO MULTIPLE FUNDING
REQUESTS. (a) The provisions within this chapter are cumulative of
all other existing incentive programs or any program created in the
future. Subject to Subsection (b), a person may receive a
reimbursement, disbursement, or rebate under one or more incentive
programs.
(b) Notwithstanding Subsection (a), a person may not
receive a reimbursement, disbursement, or rebate under Chapters
478, 480A, or this chapter that exceeds the highest incremental
increase in receipts to this state from taxes imposed under
Chapters 151, 152, 156, and 183, Tax Code, and under Title 5,
Alcoholic Beverage Code, as determined by the office, in the market
area designated by the office.
(c) A person may receive one or more reimbursements,
disbursements, and rebates under Chapters 478 and 480A and this
chapter in addition to a grant awarded under Chapter 485.
SECTION 8. Section 485A.002, Government Code, is amended by
amending Subdivisions (1) and (4) and adding Subdivision (1-a) to
read as follows:
(1) "Institution of higher education" has the meaning
assigned by Section 61.003, Education Code.
(1-a) "Media production facility" means a structure,
building, or room used for the specific purpose of creating a moving
image project. The term includes but is not limited to:
(A) a soundstage and scoring stage;
(B) a production office;
(C) an editing facility, an animation production
facility, and a video game production facility;
(D) a storage and construction space; [and]
(E) a sound recording studio and motion capture
studio; and
(F) a virtual production facility.
(4) "Nominating body" means the governing body of a
municipality, [or] county, or institution of higher education, or a
combination of the governing bodies of municipalities, [or]
counties, or institutions of higher education that:
(A) recognizes a qualified area as a media
production development zone; and
(B) nominates and applies for designation of a
location in a media production development zone as a qualified
media production location.
SECTION 9. Section 485A.101, Government Code, is amended to
read as follows:
Sec. 485A.101. CRITERIA FOR MEDIA PRODUCTION DEVELOPMENT
ZONE RECOGNITION. To be approved as a media production development
zone, an area:
(1) must be in a metropolitan statistical area, the
principal municipality of which[:
[(A) has a population of more than 250,000; and
[(B)] has the adequate workforce,
infrastructure, facilities, or resources to support the production
and completion of moving image projects;
(2) must be recognized as a media production
development zone by:
(A) ordinance or order, as appropriate, of the
governing body of a municipality or the commissioners court of a
county; or
(B) resolution or order of an institution of
higher education; and
(3) will contain a qualified media production location
within its geographical boundaries that meets the criteria under
Section 485A.102.
SECTION 10. Section 485A.104(a), Government Code, is
amended to read as follows:
(a) The governing body of a municipality, [or] county, or
institution of higher education individually or in combination with
other municipalities, [or] counties, or institutions of higher
education, by ordinance, resolution, or order, as appropriate, may
nominate as a qualified media production location a location within
its jurisdiction that meets the criteria under Section 485A.102.
SECTION 11. Section 485A.105, Government Code, is amended
to read as follows:
Sec. 485A.105. NOMINATING ORDINANCE, RESOLUTION, OR ORDER.
An ordinance, resolution, or order nominating a location as a
qualified media production location must:
(1) describe precisely both the media production
development zone in which the location is to be included and the
proposed location by a legal description or reference to municipal
or county boundaries;
(2) state a finding that the location meets the
requirements of this chapter and that the media production
development zone in which the location is to be included has been
recognized as a zone by ordinance, resolution, or order, as
appropriate, by the nominating body;
(3) summarize briefly the local financial incentives,
including tax incentives, that, at the election of the nominating
body, will apply to a qualified person;
(4) contain a brief description of the project or
activity to be conducted by a qualified person at the location;
(5) nominate the location as a qualified media
production location; and
(6) contain an economic impact analysis from an
economic expert.
SECTION 12. Section 485A.106(b), Government Code, is
amended to read as follows:
(b) The application must include:
(1) a certified copy of the ordinance, resolution, or
order, as appropriate, nominating the location as a media
production location;
(2) a certified copy of the ordinance, resolution, or
order, as appropriate, recognizing the zone in which the location
is to be included as a media production development zone;
(3) appropriate supporting documents demonstrating
that the location qualifies for designation as a qualified media
production location;
(4) an estimate of the economic impact of the
designation of the location as a qualified media production
location on the revenues of the governmental entity or entities
nominating the location as a qualified media production location,
considering the financial incentives and benefits contemplated;
(5) an economic impact analysis of the proposed
project or activities to be conducted at the proposed qualified
media production location, which must include:
(A) an estimate of the amount of revenue to be
generated to the state by the project or activity;
(B) an estimate of any secondary economic
benefits to be generated by the project or activity;
(C) an estimate of the amount of state taxes to be
exempted, as provided by Section 151.3415, Tax Code; and
(D) any other information required by the
comptroller for purposes of making the certification required by
Section 485A.109(b); and
(6) any additional information the office requires.
SECTION 13. Section 485A.110(a), Government Code, is
amended to read as follows:
(a) The office shall deny an application for the designation
of a qualified media production location if:
(1) the office determines that the nominated
location does not satisfy the criteria under Section 485A.102; or
(2) [the office determines that the number of media
production location designations or number of approved media
production development zones at the time of the application are at
the maximum limit prescribed by Section 485A.103; or
[(3)] the comptroller has not certified that the
proposed project or activity to be conducted at the location will
have a positive impact on state revenue.
SECTION 14. Section 485A.111(b), Government Code, is
amended to read as follows:
(b) A location may be designated as a qualified media
production location, and may be eligible for the sales and use tax
exemption as provided by Section 151.3415, Tax Code, for a maximum
of four [two] years, notwithstanding Section 151.3415, Tax Code.
SECTION 15. Section 485A.203, Government Code, is amended
to read as follows:
Sec. 485A.203. DURATION OF DESIGNATION. Except as
provided by Section 485A.204, the office's certification of a
person as a qualified person is effective until the fourth [second]
anniversary of the date the designation is made, regardless of
whether the designation of the qualified media production location
at which the qualified person is to perform its commitments under
this chapter is terminated before that date.
SECTION 16. Subchapter F, Chapter 485A, Government Code, is
amended by adding Section 485A.253 to read as follows:
Sec. 485A.253. ENTITLEMENT BENEFITS FOR MEDIA PRODUCTION
FACILITY CONSTRUCTION. Notwithstanding any other provision of this
chapter, a media production facility or any qualified person is
entitled to the benefits under this chapter for construction of a
media production facility that begins on or after January 1, 2023.
SECTION 17. Section 485A.103, Government Code, is repealed.
SECTION 18. To the extent of any conflict, this Act prevails
over another Act of the 88th Legislature, Regular Session, 2023,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 19. This Act takes effect September 1, 2023.