Senate Bill 22, which is a priority of Lt. Gov. Dan Patrick and was filed by State Sen. Joan Huffman (R-Houston), passed 23-8 on Wednesday.
The existing Texas Moving Image Industry Incentive Program provides qualifying productions—including video games and animations—a cash grant based on how much they invest in the state.
Currently, TMIIIP has to go through the standard budgetary process every biennium to receive funding alongside its administrator, the Texas Film Commission, which is controlled by the Office of the Governor.
Huffman’s proposal would keep the existing TMIIIP program under the Office of the Governor but also tie it to a new fund managed by the Comptroller of Public Accounts. The fund would consist of money from appropriations, grants or gifts, investment earnings, or other sources.
The Texas Moving Image Industry Incentive Fund would receive $500 million every two years over the next decade, amounting to $2.5 billion by the 2034-2035 biennium. After that, the fund would end unless reapproved by lawmakers.
“For every dollar paid in a grant, $4.69 is spent in-state, according to the Office of the Governor,” said Huffman on the Senate floor.
In addition to creating the fund, Huffman’s proposal also includes several adjustments to the existing TMIIIP program.
To qualify for TMIIIP at the moment, 55 percent of a project’s paid crew and cast must be Texas residents, and 60 percent of the production must be completed in-state.
Huffman’s proposal would lower the Texas residency requirements on paid cast and crew down to 35 percent initially, with a steady five percent increase every biennium until it reaches 50 percent by September 1, 2031.
When TMIIIP was first established by the Legislature in 2007, at least 70 percent of a project’s cast and crew had to be Texas residents, and at least 80 percent of its production had to be filmed in the state.
Huffman’s measure additionally clarifies that certain material is disqualified from grant eligibility, including pornography or obscene material, news programming, political advertising, religious services, and casino-type video games.
“This bill codifies some of the rules that had been in place through the governor’s office, but it makes it clear that the governor’s office is not required to act on any grant application and may deny an application because of inappropriate content, or content that portrays Texas or Texans in a negative fashion,” explained Huffman on the floor.
