HB4568 - Relating to the Texas moving image industry incentive program and the establishment and funding of the Texas moving image industry incentive fund.

  89R18497 BEF-D     By: Hunter H.B. No. 4568       A BILL TO BE ENTITLED   AN ACT   relating to the Texas moving image industry incentive program and   the establishment and funding of the Texas moving image industry   incentive fund.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1.  LEGISLATIVE INTENT          SECTION 1.01.  It is the intent of the legislature that no   Texas moving image industry incentive program grants be used to   fund inappropriate content or content that portrays Texas or Texans   in a negative fashion and that moving image projects funded under   the program conform to general standards of decency and respect the   diverse beliefs and values of the citizens of Texas.   ARTICLE 2.  TEXAS MOVING IMAGE INDUSTRY INCENTIVE PROGRAM; FUND          SECTION 2.01.  Section 485.021, Government Code, is amended   by adding Subdivision (1-a) to read as follows:                 (1-a)     "Incentive fund" means the Texas moving image   industry incentive fund established under Section 485.0225.          SECTION 2.02.  Section 485.022, Government Code, is amended   by amending Subsections (a) and (f) and adding Subsections (g) and   (h) to read as follows:          (a)  The office shall administer a grant program for   production companies that produce moving image projects in this   state :                 (1)  using money from the incentive fund; or                 (2)   [ , ] to the extent that gifts, grants, donations,   or other money, including appropriations, are made available to the   office for that purpose.          (f)   The following types of projects are not eligible for   grants under this subchapter:                 (1)     pornography or obscene material, as defined by   Section 43.21, Penal Code;                 (2)     news, current event or public access programming,   political advertising, including public service announcements that   advance a public policy or political position, or programs that   include weather or market reports;                 (3)  local events or religious services;                 (4)     productions not intended for commercial,   educational, or instructional distribution;                 (5)  sporting events or activities;                 (6)     awards shows, galas, or telethons and similar   programs that solicit funds;                 (7)     projects intended for undergraduate or graduate   course credit;                 (8)     application software, system software, or   middleware;                 (9)     casino-type video games and interactive digital   media experiences used in a gambling device, as defined by Section   47.01, Penal Code; or                 (10)     commercials or advertising for this state or any   agency or department of this state.           (g)  As part of the preliminary application process [ Before a   grant is awarded under this subchapter ], the office shall review   the proposed content of a moving image project in the manner   provided by office rule and advise the prospective applicant   whether the content will preclude the project from receiving a   grant under this subchapter.           (h)     Once an approved project has been completed, the office   shall review the final content before issuing the grant payment to   [ :                [ (1)  require a copy of the final script; and                [ (2) ]  determine if any substantial changes occurred   during production on a moving image project to include content   described by Subsection (e) or (f) .          SECTION 2.03.  Subchapter B, Chapter 485, Government Code,   is amended by adding Section 485.0225 to read as follows:           Sec.   485.0225.     TEXAS MOVING IMAGE INDUSTRY INCENTIVE FUND.   (a)   In this section, "trust company" means the Texas Treasury   Safekeeping Trust Company.           (b)     The Texas moving image industry incentive fund is   established as a fund outside the state treasury to be held and   invested by the trust company and administered by the office.           (c)     Money in the incentive fund may be spent without   legislative appropriation and may be used only for the purposes of   awarding grants under this subchapter and paying the trust   company's expenses of managing the incentive fund's assets.           (d)  The incentive fund consists of:                 (1)     money appropriated, transferred, or deposited to   the credit of the incentive fund by the legislature;                 (2)     money, including the proceeds of a fee or tax   imposed by this state, that by statute is dedicated for deposit to   the credit of the incentive fund;                 (3)     investment earnings and interest earned on amounts   credited to the incentive fund; and                 (4)     gifts, grants, and donations made to the office   and deposited to the credit of the incentive fund.           (e)     The trust company shall hold and invest the incentive   fund.   The incentive fund may be invested with the state treasury   pool and may be pooled with other state assets for purposes of   investment.           (f)     The overall objective for the investment of the   incentive fund is to maintain sufficient liquidity to meet the   needs of the incentive fund while striving to preserve the   purchasing power of the incentive fund over a full economic cycle.           (g)     The trust company may acquire, exchange, sell,   supervise, manage, or retain any kind of investment that a prudent   investor, exercising reasonable care, skill, and caution, would   acquire or retain in light of the purposes, terms, distribution   requirements, and other circumstances of the incentive fund then   prevailing, taking into consideration the investment of all the   assets of the incentive fund rather than a single investment.           (h)     The expenses of managing the incentive fund's assets   shall be paid from the incentive fund.           (i)     The office annually shall provide to the trust company a   forecast of the cash flows into and out of the incentive fund. The   office shall provide updates to the forecast as appropriate to   ensure the trust company is able to achieve the objective specified   by Subsection (f).           (j)     The trust company shall disburse money from the   incentive fund as directed by the office. The office may direct one   or more disbursements from the incentive fund no more frequently   than twice in any state fiscal year.          SECTION 2.04.  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)   $500,000 [ $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 55 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 , the percentage of the production crew, actors, and extras   for a moving image project who are Texas residents must be at least:                       (A)     35 percent for a moving image project that   begins principal photography on or after September 1, 2025, and   before September 1, 2027;                       (B)     40 percent for a moving image project that   begins principal photography on or after September 1, 2027, and   before September 1, 2029;                       (C)     45 percent for a moving image project that   begins principal photography on or after September 1, 2029, and   before September 1, 2031; and                       (D)     50 percent for a moving image project that   begins principal photography on or after September 1, 2031 ;                (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 of a production company's   in-state spending that has occurred.          SECTION 2.05.  Sections 485.024(a) and (c), Government Code,   are amended to read as follows:          (a)  Except as provided by Section 485.025, for a moving   image project that is:                 (1)     a feature film, a television program other than a   reality television program, or a visual effects project for a   feature film or television program other than a reality television   program with total in-state spending of:                       (A)     at least $500,000 but less than $1 million,   the amount of a grant under this subchapter is equal to five percent   of total in-state spending for the project;                       (B)     at least $1 million but less than $5 million,   the amount of a grant under this subchapter is equal to 10 percent   of total in-state spending for the project; or                       (C)     at least $5 million, the amount of a grant   under this subchapter is equal to 25 percent of total in-state   spending for the project;                 (2)     a digital interactive media production with total   in-state spending of:                       (A)     at least $100,000 but less than $1 million,   the amount of a grant under this subchapter is equal to five percent   of total in-state spending for the project;                       (B)   &#xA0 [Text truncated for display. 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