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  H.B. No. 873
 
 
 
 
AN ACT
  relating to incentives for the film, television, video, and digital
  interactive media production industries.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 485.021(2) and (5), Government Code,
  are amended 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 is obscene, as defined by Section 43.21, Penal
  Code.
               (5)  "Underutilized and economically distressed 
  ["Underused] area" includes any area of this state that:
                     (A)  the office determines receives less than 15
  percent of the total film and television production in this state
  during a fiscal year; or
                     (B)  has a median household income that does not
  exceed 75 percent of the median state household income [other than
  the metropolitan areas of Austin or Dallas].
         SECTION 2.  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 [$1 million] 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 [80] 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 3.  Sections 485.024 and 485.025, Government Code,
  are amended to read as follows:
         Sec. 485.024.  GRANT.  (a)  Except as provided by Section
  485.025, a grant under this subchapter may not exceed the amount
  established by office rule.  The office shall adopt rules
  prescribing the method the office will use to calculate the amount
  of a grant under this subsection.  The office shall publish a
  written summary of the method for determining grants before
  awarding a grant under this section.  The method must consider at a
  minimum:
               (1)  the current and likely future effect a moving
  image project will have on employment, tourism, and economic
  activity in this state; and
               (2)  the amount of a production company's in-state
  spending for a moving image project [lesser of five percent of the
  total amount of a production company's in-state spending for a
  moving image project 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].
         (b)  In calculating a grant amount under Section 485.025 or
  the amount of in-state spending for purposes of rules adopted under
  Subsection (a), the office may not include wages of persons,
  including an actor or director, employed in the production of a
  moving image project that exceed $1 million [are:
               [(1)     a major part of the production costs of the
  project, as determined by the office; and
               [(2)  negotiated or spent before production begins].
         (c)  The office may only make a grant from appropriated
  funds.
         Sec. 485.025.  ADDITIONAL GRANT FOR UNDERUTILIZED AND
  ECONOMICALLY DISTRESSED [UNDERUSED] AREAS.  In addition to the
  grant calculated under Section 485.024, a production company that
  spends at least 25 percent of a moving image project's filming days
  in an underutilized and economically distressed [underused] area is
  eligible for an additional grant in an amount equal to 2.5 [1.25]
  percent of the total amount of the production company's in-state
  spending for the moving image project.
         SECTION 4.  (a) The Music, Film, Television, and Multimedia
  Office in the office of the governor shall adopt the rules required
  by Section 485.024, Government Code, as amended by this Act, not
  later than November 1, 2009.
         (b)  The Music, Film, Television, and Multimedia Office in
  the office of the governor may not award a grant under Section
  485.024, Government Code, as amended by this Act, before the rules
  described by Subsection (a) of this section are adopted.
         SECTION 5.  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, 2009.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 873 was passed by the House on March
  26, 2009, by the following vote:  Yeas 139, Nays 6, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 873 was passed by the Senate on April
  17, 2009, by the following vote:  Yeas 27, Nays 1.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor