80R9976 TAD-D
 
  By: Dukes, Strama, Giddings, Isett, H.B. No. 1634
      Hilderbran, et al.
 
Substitute the following for H.B. No. 1634:
 
  By:  Hilderbran C.S.H.B. No. 1634
 
A BILL TO BE ENTITLED
AN ACT
relating to incentives for the film, television, and multimedia
production industries.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  The heading to Subchapter B, Chapter 485,
Government Code, is amended to read as follows:
SUBCHAPTER B. MOVING IMAGE [FILM] INDUSTRY INCENTIVE PROGRAM
       SECTION 2.  Section 485.021, Government Code, is amended to
read as follows:
       Sec. 485.021.  DEFINITIONS.  In this subchapter:
             (1)  "In-state spending" means the amount of spending
in Texas generated by a moving image project, including the amount
spent on wages to Texas residents.
             (2)  "Moving image project" ["Filmed entertainment"]
means a visual and sound production, including a[:
                   [(A)]  film,[;
                   [(B)]  television program,[; or
                   [(C)]  national or multistate commercial, or
digital interactive media production.  The term does not include a
production required to maintain records under 18 U.S.C. Section
2257 with respect to any performer portrayed on that single media or
multimedia program.
             (3) [(2)]  "Production company" includes a film
production company, television production company, digital
interactive media production company, or film and television
production company.
             (4) [(3)]  "Texas resident" means an individual who has
resided in Texas since the 120th [60th] day before the first day of:
                   (A)  production in this state on a digital
interactive media production; or
                   (B)  principal photography on another type of
project [a filmed entertainment].
             (5) [(4)]  "Underused area" includes any area of this
state other than the metropolitan areas of Austin[, Houston,] or
Dallas-Fort Worth.
       SECTION 3.  The heading to Section 485.022, Government Code,
is amended to read as follows:
       Sec. 485.022.  MOVING IMAGE [FILM] INDUSTRY INCENTIVE
PROGRAM.
       SECTION 4.  Sections 485.022(a) and (b), Government Code,
are amended to read as follows:
       (a)  The office shall administer a grant program for
production companies that produce moving image projects [filmed
entertainments] in this state, to the extent that gifts, grants,
donations, or other money, including appropriations, are made
available to the office for that purpose.
       (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 provisions relating to:
             (1)  methods by which an individual's Texas residency
as described by Section 485.021(4) [485.021(3)] can be proved; and
             (2)  requirements for the submission, before
production of a moving image project [filmed entertainment] begins,
of an estimate of total in-state spending [wages that will be paid
to Texas residents].
       SECTION 5.  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 generate [pay] a
minimum of:
                   (A)  $10 million in in-state spending
[(1)$500,000 in wages to Texas residents] for a film or
television program; or
                   (B)  $500,000 in in-state spending [(2)  $50,000
in wages to Texas residents] for a commercial, [or] series of
commercials, or 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;
             (3)  at least 80 percent of the moving image project
must be filmed in Texas; and
             (4)  a digital interactive media production may not
contain intense violence, blood and gore, graphic sexual content,
nudity, or strong language.
       SECTION 6.  Section 485.024, Government Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
       (a)  Except as provided by Section 485.025, a grant under
this subchapter may not exceed the lesser of[:
             [(1)]  20 percent of the wages paid to Texas residents
for a moving image project [filmed entertainment;] or:
             (1)  $2 million for a film;
             (2)  $2.5 million for a television program;
             (3)  $200,000 for a commercial or series of
commercials; or
             (4)  $250,000 for a digital interactive media
production [(2)$750,000].
       (c)  In calculating the amount of wages paid to a Texas
resident for a moving image project under Subsection (a), the
office may not include amounts that exceed:
             (1)  $50,000 for a film, commercial, or digital
interactive media production; or
             (2)  $100,000 for a television program.
       SECTION 7.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2007.