Film Bill Hands Productions 25 Percent Of The Extra Tax

The text as introduced · 6,521 words

89R2460 PRL-F

By: Capriglione
H.B. No. 1452

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 the

legislature appropriates, 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. Sections 478.0001(3) and (7), Government Code,

are 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) the Bassmaster Classic;

(D) a Big 12 Football Conference Championship

game;

(E) the Breeders' Cup World Championships;

(F) the CMT (Country Music Television) Music

Awards;

(G) a game of the College Football Playoff or its

successor;

(H) the Confederation of North, Central America

and Caribbean Association Football (Concacaf) Gold Cup;

(I) a CONVRG conference;

(J) an Elite Rodeo Association World

Championship;

(K) a Federation Equestre Internationale World

Cup Final;

(L) a Federation Internationale de Motocyclisme

(FIM) World Supercross Championship race;

(L-1) a film or television production;

(M) the Formula One United States Grand Prix;

(N) 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;

(O) the Major League Baseball All-Star Game;

(P) the Major League Soccer All-Star Game or the

Major League Soccer Cup;

(Q) a mixed martial arts championship;

(R) the Moto Grand Prix of the United States;

(S) the National Association for Stock Car Auto

Racing (NASCAR):

(i) All-Star Race;

(ii) season-ending Championship Race; or

(iii) Texas Grand Prix race;

(T) the National Basketball Association All-Star

Game;

(U) a National Collegiate Athletic Association

Final Four tournament game;

(V) the National Collegiate Athletic Association

men's or women's lacrosse championships;

(W) 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;

(X) the National Cutting Horse Association

Triple Crown;

(Y) the National Hockey League All-Star Game;

(Z) the National Hot Rod Association Fall

Nationals at the Texas Motorplex;

(AA) a national political convention of the

Republican National Committee or the Democratic National

Committee;

(BB) the National Reined Cow Horse Association

(NRCHA) Championship Series;

(CC) 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;

(DD) a presidential general election debate;

(EE) the Professional Bull Riders World Finals;

(FF) the Professional Rodeo Cowboys Association

National Finals Rodeo;

(GG) a series of cricket matches or competitions

within the T20 World Cup;

(HH) a Super Bowl;

(II) the United States Open Championship;

(JJ) a World Cup soccer game or the World Cup

soccer tournament;

(KK) the World Games;

(LL) a World Wrestling Entertainment

WrestleMania event; or

(MM) the X Games.

(7) "Site selection organization" means:

(A) the Academy of Country Music;

(B) the Amateur Athletic Union;

(C) Bass Anglers Sportsman Society, LLC;

(D) the Big 12 Conference;

(E) CMT (Country Music Television) Productions

Inc.;

(F) the College Football Playoff Administration,

LLC, or its successor;

(G) the Commission on Presidential Debates;

(H) the Confederation of North, Central America

and Caribbean Association Football (Concacaf);

(I) the Democratic National Committee;

(J) Dorna Sports;

(K) the Elite Rodeo Association;

(L) Encore Live;

(M) ESPN or an affiliate;

(N) the Federation Equestre Internationale

(FEI);

(O) the Federation Internationale de Football

Association (FIFA);

(O-1) a film or television production

organization;

(P) the International Cricket Council;

(Q) the International World Games Association;

(R) Major League Baseball;

(S) Major League Soccer;

(T) the National Association for Stock Car Auto

Racing (NASCAR);

(U) the National Basketball Association;

(V) the National Collegiate Athletic

Association;

(W) the National Cutting Horse Association;

(X) the National Football League;

(Y) the National Hockey League;

(Z) the National Hot Rod Association;

(AA) the National Reined Cow Horse Association

(NRCHA);

(BB) Professional Bull Riders, LLC;

(CC) the Professional Rodeo Cowboys Association;

(DD) the Republican National Committee;

(EE) SX Global;

(FF) the Ultimate Fighting Championship;

(GG) the United States Golf Association;

(HH) the United States Olympic Committee;

(II) World Wrestling Entertainment; or

(JJ) the national governing body of a sport that

is recognized by:

(i) the Federation Internationale de

l'Automobile;

(ii) Formula One Management Limited or its

successor;

(iii) the National Thoroughbred Racing

Association; or

(iv) the United States Olympic Committee.

SECTION 4. Section 478.0051, Government Code, is amended by

adding Subsection (d) to read as follows:

(d) Notwithstanding Subsection (b), an event described by

Section 478.0001(3)(L-1) 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 5. 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 an

endorsing municipality or endorsing county authorizes 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 within the office of the governor.

(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 occurring over multiple days, weeks, or years, and in

multiple locations across this state. Notwithstanding any other

law, to the extent of a conflict between an office rule adopted 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 concluding 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 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 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

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. The

office may disburse money in the film events trust fund 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, the office may disburse money 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 disburse money 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 disburses money 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 or a fixture 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 disburse money from the film

events trust fund to 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 the office requires to fulfill the

office's duties under this chapter, including:

(1) annual audited statements of any financial records

a site selection organization requires; and

(2) data the endorsing entity obtains 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 the office requires 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 for the notes to 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 6. Subtitle F, Title 4, Government Code, is amended

by adding Chapter 483 to read as follows:

CHAPTER 483. FILM OR TELEVISION PRODUCTION TAX REBATE TRUST FUND

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 483.0001. DEFINITIONS. In this chapter:

(1) "Competitive selection process" means the

competitive selection process established by office rule 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. 483.0002. 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 occurring over multiple days, weeks,

or years, and in multiple locations across this state.

Notwithstanding any other law, to the extent of a conflict between

an office rule adopted to accomplish the purposes of this

subsection and another provision of this chapter, the rule

controls.

SUBCHAPTER B. ELIGIBILITY

Sec. 483.0051. 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. 483.0101. 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 483.0103 that the office determines are

directly attributable to the preparation, production, performance,

and presentation of the film or television production.

Sec. 483.0102. TIME FOR DETERMINATION. The office shall

calculate the incremental increase in tax receipts under Section

483.0101 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. 483.0103. DESIGNATION OF MARKET AREA. For purposes of

Section 483.0101, 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. 483.0104. 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. 483.0151. 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. 483.0152. 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

483.0101.

Sec. 483.0153. 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. 483.0201. DISBURSEMENT WITHOUT APPROPRIATION. The

office may disburse money in the trust fund without appropriation

only as provided by this chapter.

Sec. 483.0202. REBATE DISBURSEMENT FROM TRUST FUND. In

accordance with procedures adopted by the office, the office shall

disburse money 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

483.0101 for the applicable film or television production.

SUBCHAPTER F. MULTIPLE FUNDING REQUESTS

Sec. 483.0251. 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 Chapter 478

or 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 the office determines, in the market

area the office designates.

(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 7. 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 8. 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 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 9. 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 10. 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 11. 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 12. 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 13. 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 14. 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 15. 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, 2025.

SECTION 16. Section 485A.103, Government Code, is repealed.

SECTION 17. This Act takes effect September 1, 2025.