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                                                                  S.B. No. 1142




AN ACT
relating to the creation of a film industry incentive program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 485.001 through 485.007, Government Code, are designated as Subchapter A, Chapter 485, Government Code, and a subchapter heading is added to read as follows:
SUBCHAPTER A. GENERAL PROVISIONS
SECTION 2. Chapter 485, Government Code, is amended by adding Subchapter B to read as follows:
SUBCHAPTER B. FILM INDUSTRY INCENTIVE PROGRAM
Sec. 485.021. DEFINITIONS. In this subchapter: (1) "Filmed entertainment" means a visual and sound production, including a: (A) film; (B) television program; or (C) national or multistate commercial. (2) "Production company" includes a film production company, television production company, or film and television production company. (3) "Texas resident" means an individual who has resided in Texas since the 60th day before the first day of principal photography on a filmed entertainment. (4) "Underused area" includes any area of this state other than the metropolitan areas of Austin, Houston, or Dallas-Fort Worth. Sec. 485.022. FILM INDUSTRY INCENTIVE PROGRAM. (a) The office shall administer a grant program for production companies that produce 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(3) can be proved; and (2) requirements for the submission, before production of a filmed entertainment begins, of an estimate of total wages that will be paid to Texas residents. (c) The office may accept gifts, grants, and donations for the purpose of implementing this subchapter. Sec. 485.023. QUALIFICATION. To qualify for a grant under this subchapter, a production company must pay a minimum of: (1) $500,000 in wages to Texas residents for a film or television program; or (2) $50,000 in wages to Texas residents for a commercial or series of commercials. Sec. 485.024. GRANT. (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 filmed entertainment; or (2) $750,000. (b) In calculating a grant amount under Subsection (a), the office may not include wages of persons, including an actor or director, employed in the production of a filmed entertainment that are: (1) a major part of the production costs of the entertainment, as determined by the office; and (2) negotiated or spent before production begins. Sec. 485.025. ADDITIONAL GRANT FOR UNDERUSED AREAS. In addition to the grant calculated under Section 485.024, a production company that spends at least 25 percent of a filmed entertainment's filming days in an underused area is eligible for an additional grant in an amount equal to five percent of the wages paid to Texas residents for the filmed entertainment. Sec. 485.026. STATE DEBT. If a production company owes money to the state at the time the production company is awarded a grant under this subchapter, the office shall offset the amount owed to the state from the amount awarded. SECTION 3. This Act takes effect September 1, 2005.
______________________________ ______________________________ President of the Senate Speaker of the House
I hereby certify that S.B. No. 1142 passed the Senate on May 13, 2005, by the following vote: Yeas 30, Nays 0; May 26, 2005, Senate refused to concur in House amendments and requested appointment of Conference Committee; May 26, 2005, House granted request of the Senate; May 29, 2005, Senate adopted Conference Committee Report by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 1142 passed the House, with amendments, on May 25, 2005, by a non-record vote; May 26, 2005, House granted request of the Senate for appointment of Conference Committee; May 29, 2005, House adopted Conference Committee Report by a non-record vote. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor