We think that Texas is a great state, and we love films being shot in our state. Well, except when they tie up downtown traffic (we remember "Miss Congeniality"!). We learn from one of our mailing lists that bills are being proposed in the House and Senate that would provide incentives to films that shoot in Texas. Let's keep films that take place in Texas in Texas. We read a few months ago that New Mexico was setting up a killer incentive program, and we can't have them beat us!

Following is the e-mail we were sent.

Film projects bring $200,000,000 directly into the Texas economy each year, but our share of the film industry is being increasingly threatened by aggressive incentives offered by other states and Canada. Even producers who want to work in Texas often cannot because we do not have financial incentives comparable to those offered by other states.

We thought that you would be interested to know that legislation has now been filed proposing incentives to attract film business to Texas, as follows:

House Bill: HB 2954

Sponsor: Peggy Hamric, Houston

Senate Bill: SB 1142

Sponsor: John Carona, Dallas

Details on the bills can be retrieved using the bill numbers at the following website:

www.capitol.state.tx.us

There will be revisions, but the gist of the bills is:

A one-time appropriation of $30 million is sought, $20 million for film and $10 million for tourism, spread over two years. The incentives are based on payroll, so the more Texans you hire, the more you get back, up to 20% of payroll. If you film outside Houston, Dallas or Austin, you can get up to 25% back.

Once the bills are assigned to committee, it will be possible to contact each committee member. For now, the two sponsors need to know that there is a force out there that supports the legislation. It needs to be understood that this isn't money for 'Hollywood;" it's money that will go into the pockets of Texans. If we continue to lose business to other states, many of the 6,000 people who make a living in the industry will move away. These lost jobs will mean lost sales tax revenue from the money buying homes and goods, and reinvesting in their businesses.

Please call or write Sen. Carona or Rep. Hamric to express interest and support. Their contact information can be found on the following web pages:

http://www.senate.state.tx.us/75r/senate/members/dist16/dist16.htm

http://www.house.state.tx.us/members/dist126/hamric.htm

When these bills are assigned to committees, we will let you know and you can contact each committee member.
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By: Carona S.B. No. 1142

A BILL TO BE ENTITLED

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 485.001-485.007, 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.
(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.

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.