� |
� |
� |
�
|
AN ACT
|
�
|
relating to the designation of qualified media production locations |
�
|
in media production development zones and to exemptions from the |
�
|
sales and use tax for items used for media production facilities in |
�
|
qualified media production locations. |
�
|
�������BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
�
|
�������SECTION�1.��Subtitle F, Title 4, Government Code, is amended |
�
|
by adding Chapter 485A to read as follows: |
�
|
CHAPTER 485A. MEDIA PRODUCTION DEVELOPMENT ZONES |
�
|
SUBCHAPTER A. GENERAL PROVISIONS |
�
|
�������Sec.�485A.001.��SHORT TITLE. This chapter may be cited as |
�
|
the Media Production Development Zone Act. |
�
|
�������Sec.�485A.002.��DEFINITIONS. In this chapter: |
�
|
�������������(1)��"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. |
�
|
�������������(2)��"Media production development zone" means an area |
�
|
recognized by a nominating body and approved by the office as a |
�
|
media production development zone under this chapter. |
�
|
�������������(3)��"Moving image project" means a visual and sound |
�
|
production, including a film, television program, national or |
�
|
multistate commercial, or digital interactive media production. |
�
|
The term does not include a production that is obscene, as defined |
�
|
by Section 43.21, Penal Code. |
�
|
�������������(4)��"Nominating body" means the governing body of a |
�
|
municipality or county, or a combination of the governing bodies of |
�
|
municipalities or counties, 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. |
�
|
�������������(5)��"Office" means the Music, Film, Television, and |
�
|
Multimedia Office within the office of the governor. |
�
|
�������������(6)��"Qualified media production location" means a |
�
|
location in a media production development zone that has been |
�
|
designated by the office as a qualified media production location |
�
|
in accordance with this chapter. |
�
|
�������������(7)��"Qualified person" means a person certified as a |
�
|
qualified person under Section 485A.201. |
�
|
�������Sec.�485A.003.��JURISDICTION OF MUNICIPALITY. For the |
�
|
purposes of this chapter, territory in the extraterritorial |
�
|
jurisdiction of a municipality is considered to be in the |
�
|
jurisdiction of the municipality. |
�
|
[Sections 485A.004-485A.050 reserved for expansion] |
�
|
SUBCHAPTER B. OFFICE POWERS AND DUTIES IN GENERAL |
�
|
�������Sec.�485A.051.��GENERAL POWERS AND DUTIES. (a)��Except as |
�
|
provided by Subsection (b), the office shall administer and monitor |
�
|
the implementation of this chapter. |
�
|
�������(b)��The office and the comptroller's office shall jointly |
�
|
establish criteria and procedures for: |
�
|
�������������(1)��approving a qualified area recognized as a media |
�
|
production development zone by a nominating body; |
�
|
�������������(2)��designating a qualified location in a media |
�
|
production development zone as a qualified media production |
�
|
location; and |
�
|
�������������(3)��certifying a person as a qualified person under |
�
|
Section 485A.201. |
�
|
�������Sec.�485A.052.��RULEMAKING AUTHORITY. The office shall |
�
|
adopt rules necessary to implement this chapter. |
�
|
�������Sec.�485A.053.��ANNUAL REPORT. On or before December 15 of |
�
|
each year, the office shall submit to the governor, the |
�
|
legislature, and the Legislative Budget Board a report that: |
�
|
�������������(1)��evaluates the effectiveness of the media |
�
|
production development zone program; and |
�
|
�������������(2)��describes the use of state and local incentives |
�
|
under this chapter and their effect on revenue. |
�
|
�������Sec.�485A.054.��ASSISTANCE. The office shall provide to |
�
|
persons desiring to construct, expand, maintain, improve, or |
�
|
renovate a media production facility in a qualified media |
�
|
production location information and appropriate assistance |
�
|
relating to the required legal authorization, including a permit, |
�
|
certificate, approval, and registration, necessary in this state to |
�
|
accomplish that objective. |
�
|
[Sections 485A.055-485A.100 reserved for expansion] |
�
|
SUBCHAPTER C. APPROVAL OF MEDIA PRODUCTION DEVELOPMENT ZONE AND |
�
|
DESIGNATION OF QUALIFIED MEDIA PRODUCTION LOCATIONS |
�
|
�������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: |
�
|
�������������������(A)��has a population of more than 250,000; and |
�
|
�������������������(B)��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 ordinance or order, as appropriate, of a |
�
|
municipality or the commissioners court of a county; and |
�
|
�������������(3)��will contain a qualified media production location |
�
|
within its geographical boundaries that meets the criteria under |
�
|
Section 485A.102. |
�
|
�������Sec.�485A.102.��CRITERIA FOR QUALIFIED MEDIA PRODUCTION |
�
|
LOCATION DESIGNATION. To be designated a qualified media |
�
|
production location, a location must be land or other real property |
�
|
that is in a media production development zone and will: |
�
|
�������������(1)��be used exclusively to build or construct one or |
�
|
more media production facilities; |
�
|
�������������(2)��if the real property is a building or other |
�
|
facility, be renovated solely for the purpose of being converted |
�
|
into one or more media production facilities; or |
�
|
�������������(3)��if the real property consists solely of one or more |
�
|
media production facilities, be improved or renovated for that |
�
|
purpose or will be expanded into one or more additional media |
�
|
production facilities. |
�
|
�������Sec.�485A.103.��MAXIMUM NUMBER OF ZONES AND LOCATIONS |
�
|
THROUGHOUT STATE. (a)��There may not be more than 10 media |
�
|
production development zone designations under this chapter at any |
�
|
one time. |
�
|
�������(b)��There may not be more than five media production |
�
|
development zones under this chapter in a region at any one time. |
�
|
�������(c)��Each media production development zone may not contain |
�
|
more than three media production locations at any one time. |
�
|
�������(d)��For purposes of Subsection (b), the office shall divide |
�
|
the state into regions consisting of geographical boundaries |
�
|
prescribed by office rule. |
�
|
�������Sec.�485A.104.��NOMINATION OF QUALIFIED MEDIA PRODUCTION |
�
|
LOCATION. (a)��The governing body of a municipality or county, |
�
|
individually or in combination with other municipalities or |
�
|
counties, by ordinance 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. |
�
|
�������(b)��The governing body of a county may not nominate |
�
|
territory in a municipality, including extraterritorial |
�
|
jurisdiction of a municipality, to be included in a proposed |
�
|
qualified media production location unless the governing body of |
�
|
the municipality also nominates the territory and together with the |
�
|
county files a joint application under Section 485A.106. |
�
|
�������Sec.�485A.105.��NOMINATING ORDINANCE OR ORDER. An ordinance |
�
|
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 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. |
�
|
�������Sec.�485A.106.��APPLICATION FOR DESIGNATION. (a)��For a |
�
|
location in a media production development zone to be designated as |
�
|
a qualified media production location, the nominating body, after |
�
|
nominating the location as a qualified media production location, |
�
|
must send to the office a written application for designation of the |
�
|
location in the zone as a qualified media production location. |
�
|
�������(b)��The application must include: |
�
|
�������������(1)��a certified copy of the ordinance or order, as |
�
|
appropriate, nominating the location as a media production |
�
|
location; |
�
|
�������������(2)��a certified copy of the ordinance 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. |
�
|
�������(c)��Information required by Subsection (b) is for |
�
|
evaluation purposes only. |
�
|
�������(d)��The economic impact analysis required by Subsection |
�
|
(b)(5) must also be submitted to the comptroller. |
�
|
�������Sec.�485A.107.��ADVISORY COMMITTEE. (a)��The media |
�
|
production advisory committee is composed of the following members: |
�
|
�������������(1)��the director of the Texas Film Commission division |
�
|
of the governor's office; |
�
|
�������������(2)��one representative of the comptroller's office, |
�
|
appointed by the comptroller; and |
�
|
�������������(3)��subject to Subsection (b), nine representatives |
�
|
appointed by the comptroller. |
�
|
�������(b)��In making appointments to the advisory committee under |
�
|
Subsection (a)(3), the comptroller shall provide for a balanced |
�
|
representation of the different geographic regions of this state. |
�
|
Each of the following types of companies or organizations must be |
�
|
represented by at least one member serving on the advisory |
�
|
committee: |
�
|
�������������(1)��animation production companies; |
�
|
�������������(2)��film and television production companies; |
�
|
�������������(3)��labor or workforce organizations; |
�
|
�������������(4)��equipment vendors; |
�
|
�������������(5)��the video gaming industry; and |
�
|
�������������(6)��commercial production companies. |
�
|
�������(c)��The director of the Texas Film Commission division of |
�
|
the office of the governor serves as the presiding officer of the |
�
|
advisory committee. The advisory committee shall meet at the call |
�
|
of the presiding officer. |
�
|
�������(d)��The advisory committee, through review of applications |
�
|
submitted under Section 485A.108, shall make recommendations to the |
�
|
office for designation of qualified media production locations |
�
|
under this subchapter. The office may provide administrative |
�
|
support to the advisory committee. |
�
|
�������(e)��Section 2110.008 does not apply to the advisory |
�
|
committee. |
�
|
�������Sec.�485A.108.��REVIEW OF APPLICATION. (a)��On receipt of |
�
|
an application for the designation of a qualified media production |
�
|
location, the office shall review the application to determine |
�
|
whether the nominated location qualifies for designation as a |
�
|
qualified media production location under this chapter. |
�
|
�������(b)��The office shall consider recommendations submitted by |
�
|
the media production advisory committee with respect to |
�
|
applications received by the office. |
�
|
�������Sec.�485A.109.��DESIGNATION. (a)��If the office determines |
�
|
that a nominated location for which a designation application has |
�
|
been received satisfies the criteria under Section 485A.102 and on |
�
|
recommendation of the media production advisory committee, the |
�
|
office may designate the nominated location as a qualified media |
�
|
production location unless the office determines that the |
�
|
designation request should be denied for the reasons specified by |
�
|
Section 485A.110. |
�
|
�������(b)��A designation of a qualified media production location |
�
|
may not be made under this section until the comptroller, based on |
�
|
an evaluation of the economic impact analysis submitted under |
�
|
Section 485A.106(b)(5), certifies that the project or activity to |
�
|
be conducted at the designated location will have a positive impact |
�
|
on state revenue. |
�
|
�������(c)��On designation of the first qualified media production |
�
|
location in a media production development zone recognized by the |
�
|
nominating body for that purpose, the office shall simultaneously |
�
|
approve the media production development zone. |
�
|
�������Sec.�485A.110.��DENIAL OF APPLICATION; NOTICE. (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; |
�
|
�������������(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. |
�
|
�������(b)��The office shall inform the nominating body of the |
�
|
specific reasons for denial of an application under this section. |
�
|
�������Sec.�485A.111.��PERIOD OF APPROVAL OR DESIGNATION. (a)��An |
�
|
area that qualifies under this subchapter may be approved by the |
�
|
office as a media production development zone for a maximum of five |
�
|
years after the date the last qualified media production location |
�
|
was designated within the zone's boundaries. |
�
|
�������(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 two years. |
�
|
�������(c)��Except as provided by Section 485A.112, a media |
�
|
production development zone approval and qualified media |
�
|
production location designation remains in effect until September 1 |
�
|
of the final year of the approval or designation, as appropriate. |
�
|
�������Sec.�485A.112.��REMOVAL OF APPROVAL OR DESIGNATION. |
�
|
(a)��The office may remove the approval of an area recognized as a |
�
|
media production development zone if the area no longer meets the |
�
|
criteria for that recognition under this chapter or by office rule |
�
|
adopted under this chapter. |
�
|
�������(b)��The office may remove the designation of a location as a |
�
|
qualified media production location if the location no longer meets |
�
|
the criteria for that designation under this chapter or by office |
�
|
rule adopted under this chapter. |
�
|
�������(c)��The removal of a designation or approval does not affect |
�
|
the validity of a tax incentive granted or accrued before the |
�
|
removal. |
�
|
[Sections 485A.113-485A.150 reserved for expansion] |
�
|
SUBCHAPTER D. ADMINISTRATION OF MEDIA PRODUCTION LOCATION |
�
|
�������Sec.�485A.151.��ANNUAL REPORT. (a)��For purposes of this |
�
|
section, the governing body of a qualified media production |
�
|
location is the governing body of the municipality or county, or the |
�
|
governing bodies of the combination of municipalities or counties, |
�
|
that applied to have the location designated as a qualified media |
�
|
production location. |
�
|
�������(b)��Not later than October 1 of each year, the governing |
�
|
body of a qualified media production location shall submit to the |
�
|
office a report in the form prescribed by the office. |
�
|
�������(c)��The report must include for the year preceding the date |
�
|
of the report: |
�
|
�������������(1)��the use of local incentives for which the |
�
|
governing body provided in the ordinance or order nominating the |
�
|
qualified media production location and the effect of those |
�
|
incentives on revenue; |
�
|
�������������(2)��the number of qualified persons engaging in a |
�
|
project or activity related to a media production facility at the |
�
|
qualified media production location; and |
�
|
�������������(3)��the types of projects or activities engaged or to |
�
|
be engaged in by qualified persons at the qualified media |
�
|
production location. |
�
|
[Sections 485A.152-485A.200 reserved for expansion] |
�
|
SUBCHAPTER E. QUALIFIED PERSON DESIGNATION AND CERTIFICATION |
�
|
�������Sec.�485A.201.��QUALIFIED PERSON. A person is a qualified |
�
|
person if the office, for the purpose of state benefits under this |
�
|
chapter, or the nominating body of a qualified media production |
�
|
location, for the purpose of local benefits, certifies that the |
�
|
person, not later than 18 months after the date of the designation: |
�
|
�������������(1)��will build or construct one or more media |
�
|
production facilities at a location; |
�
|
�������������(2)��will renovate a building or facility solely for |
�
|
the purpose of being converted into one or more media production |
�
|
facilities at a location; or |
�
|
�������������(3)��will renovate or expand one or more media |
�
|
production facilities at a location. |
�
|
�������Sec.�485A.202.��PROHIBITION ON QUALIFIED PERSON |
�
|
CERTIFICATION. If the office determines that the nominating body |
�
|
of a qualified media production location is not complying with this |
�
|
chapter, the office shall prohibit the certification of a qualified |
�
|
person at the location until the office determines that the |
�
|
nominating body is complying with this chapter. |
�
|
�������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 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. |
�
|
�������Sec.�485A.204.��REMOVAL OF DESIGNATION. The office shall |
�
|
remove the certification of a qualified person for state benefits |
�
|
under this chapter if the office determines that the construction, |
�
|
renovation, improvement, maintenance, or expansion of a media |
�
|
production facility has not been completed at the qualified media |
�
|
production location for which it has received its certification |
�
|
within the period prescribed by Section 485A.201. |
�
|
[Sections 485A.205-485A.250 reserved for expansion] |
�
|
SUBCHAPTER F. MEDIA PRODUCTION LOCATION BENEFITS |
�
|
�������Sec.�485A.251.��EXEMPTION FROM SALES AND USE TAX. Certain |
�
|
items are exempt from the sales and use tax as provided by Section |
�
|
151.3415, Tax Code. |
�
|
�������Sec.�485A.252.��MONITORING QUALIFIED PERSON COMMITMENTS. |
�
|
(a)��The office may monitor a qualified person to determine whether |
�
|
and to what extent the qualified person has followed through on the |
�
|
commitments made by the qualified person under this chapter. |
�
|
�������(b)��The office may determine that the qualified person is |
�
|
not entitled to a tax exemption under Section 151.3415, Tax Code, if |
�
|
the office determines that the qualified person: |
�
|
�������������(1)��is not willing to cooperate with the office in |
�
|
providing information needed by the office to make the |
�
|
determination under Subsection (a); |
�
|
�������������(2)��has substantially failed to follow through on the |
�
|
commitments made by the person under this chapter before the first |
�
|
anniversary of the date of the qualified media production location |
�
|
designation; or |
�
|
�������������(3)��fails to submit the report required by Section |
�
|
151.3415, Tax Code. |
�
|
�������SECTION�2.��Subchapter H, Chapter 151, Tax Code, is amended |
�
|
by adding Section 151.3415 to read as follows: |
�
|
�������Sec.�151.3415.��ITEMS SOLD TO OR USED TO CONSTRUCT, |
�
|
MAINTAIN, EXPAND, IMPROVE, EQUIP, OR RENOVATE MEDIA PRODUCTION |
�
|
FACILITIES AT MEDIA PRODUCTION LOCATIONS; REPORT. (a)��In this |
�
|
section, "qualified person" and "qualified media production |
�
|
location" have the meanings assigned by Section 485A.002, |
�
|
Government Code. |
�
|
�������(b)��The sale, lease, or rental of a taxable item to a |
�
|
qualified person is exempted from the taxes imposed by this chapter |
�
|
for a maximum of two years if the item is used: |
�
|
�������������(1)��for the construction, maintenance, expansion, |
�
|
improvement, or renovation of a media production facility at a |
�
|
qualified media production location; |
�
|
�������������(2)��to equip a media production facility at a |
�
|
qualified media production location; or |
�
|
�������������(3)��for the renovation of a building or facility at a |
�
|
qualified media production location that is to be used exclusively |
�
|
as a media production facility. |
�
|
�������(c)��A qualified person shall submit an annual report to the |
�
|
comptroller regarding the sale, lease, or rental of taxable items |
�
|
for which a tax exemption is granted to the qualified person under |
�
|
this section. The report must be in the form and manner prescribed |
�
|
by the comptroller. |
�
|
�������(d)��The comptroller shall share information from reports |
�
|
submitted under Subsection (c), on request, with the Music, Film, |
�
|
Television, and Multimedia Office within the office of the |
�
|
governor. |
�
|
�������SECTION�3.��This Act takes effect September 1, 2009. |
�
|
|
�
|
|
� |
� |
� |
� |
______________________________ |
______________________________ |
� |
���President of the Senate |
Speaker of the House����� |
� |
�
|
�������I hereby certify that S.B.�No.�1929 passed the Senate on |
�
|
April 29, 2009, by the following vote: Yeas�30, Nays�1; and that |
�
|
the Senate concurred in House amendment on May 21, 2009, by the |
�
|
following vote: Yeas�31, Nays�0. |
�
|
|
� |
� |
______________________________ |
� |
Secretary of the Senate���� |
� |
�
|
�������I hereby certify that S.B.�No.�1929 passed the House, with |
�
|
amendment, on May 15, 2009, by the following vote: Yeas�132, |
�
|
Nays�12, one present not voting. |
�
|
|
� |
� |
______________________________ |
� |
Chief Clerk of the House��� |
� |
�
|
|
� |
�
|
Approved: |
�
|
|
�
|
______________________________� |
�
|
������������Date |
�
|
|
�
|
|
�
|
______________________________� |
�
|
����������Governor |