AUSTIN (Nexstar) — The Texas Senate passed a bill aimed at bringing more film and television production to Texas on Wednesday.
Senate Bill 22, filed by Sen. Joan Huffman, R-Houston, would set aside $500 million every two years until 2035 for the “Moving Image Industry Incentive Fund.” This is more than double the amount the state currently spends and the largest amount state lawmakers have ever allocated for media production since the state began funding film incentives in 2007.
Through this bill, Texas’ film office, within the governor’s office, would issue grants to film productions that spend at least $250,000 in Texas. The bill would also reduce the Texas residency requirements necessary to obtain grants to 35% for the next two years, increasing it over time throughout the two-year cycle to eventually reach 50% in 2031. Under current law, film productions are only eligible for grants if 55% of their crew base, including actors and extras, are Texas residents.
The film industry in Texas has already created 189,000 jobs for the state’s residents and has given the state a 469% return on investment, according to Adriana Cruz, the executive director of the Texas Economic Development and Tourism Office, who testified at the hearing. This means for every grant dollar the state awards, the industry returns $4.69 to its economy.
Dallas Morgan, the executive producer and head of distribution at Caster Studios, a film studio based in Dripping Springs, Texas, is a supporter of the legislation. He said it is getting more expensive to film and make movies, and any production is looking for some incentives to offset the cost. It will also benefit local filmmakers and crew who can work in the same state they call home, giving them the chance to be close to family.
“I know everyone’s desire from every position on a crew is to stay local,” Morgan explained.
Caster Studios works on a variety of projects, but more recently has been working on kid-friendly content. Its studio benefited from the incentive program in the past. He said it is a long process to apply and provide proof of all the dollars spent on the project in the state, but he understands it is a reasonable request to make sure the money is spent wisely.
The bill passed with a 23-8 vote and was supported by lawmakers on both sides of the aisle. Those who opposed the bill raised concerns about the criteria the governor’s office will use to determine which projects will receive the funding.
State Sen. Sarah Eckhardt, D-Austin, said her contacts in the industry are worried about the uncertainty of the program and the subjective language in the rules. The governor’s office can revoke a grant at any time while the movie is being made. A grant will not be paid until the end of the movie-making process.
She also points out the bill codifies the current rules the office uses to approve grants. If the office deems a project portrays Texas or Texans in a negative light or does not uphold family values, then it can be rejected. It also prohibits obscene or pornographic materials.
Huffman responded to those concerns that it will be easy to determine which films hold up Texas and family values. Eckhardt responded on the Senate floor, saying, “Whose family values would always be the question.”
Morgan agrees the uncertainty can make it hard on the production side to financially plan out the film, but he understands that if those provisions are needed in the bill to pass, it may not be the worst thing.
The bill prohibits obscene or pornographic materials and contains a stipulation prohibiting any content that portrays Texas or Texans in a negative fashion.
But, in addition to the original legislation, Huffman successfully pushed through an amendment that would give an additional 2.5% incentive to faith-based productions, another benefit for films filmed in rural areas, and another benefit for hiring a certain number of veterans on the crew and cast.
SB 22 will now head to the House for a vote and eventually to Gov. Greg Abbott to sign into law.
