(a) All applications will be reviewed in the order
they are received.
(b) Initial Review.
(1) Each application will go through an initial review
process when the Qualifying Application has been received.
(A) If a project submits a Qualifying Application with
required materials, the Applicant will receive an e-mail notifying
them that the Texas Film Commission (Commission) has received their
complete application and the preliminary eligibility determination
process will begin.
(B) If a project submits a Qualifying Application without
the required materials, the Applicant will receive an e-mail notifying
them that their application requires additional materials or documentation,
and that not receiving them by the fifth Business Day prior to the
project's Principle Start Date may result in an application being
disqualified.
(2) Applicants will have the ability to amend information
on their application. The Commission may determine whether an Applicant's
amendment(s) will require them to reapply or not.
(c) Preliminary Eligibility Determination.
(1) During the preliminary eligibility determination
process, the Commission will review the project's Qualifying Application
and budget to identify eligible expenditures and to determine if the
Applicant meets the minimum program requirements for in-state spending,
Texas Filming Days and Texas Residency.
(2) The Commission will also review the Content Document,
as defined in §121.8(a)(1)(C) of this chapter, to determine if
it is appropriate.
(3) Finally, the Commission will examine the Qualifying
Application in light of the following criteria to assess, in the aggregate,
the potential magnitude of the economic impact of the project in the
State of Texas:
(A) The financial viability of the Applicant and the
likelihood of successful project execution and planned spending in
the State of Texas;
(B) Proposed spending on existing state production
infrastructure (such as soundstages and industry vendors);
(C) The number of Texas jobs estimated to be created
by the project;
(D) The ability to promote Texas as a tourist destination
through the conduct of the project and planned expenditure of funds;
(E) The magnitude of estimated expenditures in Texas;
and
(F) Whether the project will be directed or produced
by an individual who is a Texas Resident (where the term "produced
by" is intended to encompass a non-honorary producer with direct involvement
in the day to day production of the project, but above the level of
line producer).
(4) The Applicant will receive an e-mail notifying
them that the Qualifying Application has been approved if:
(A) The Qualifying Application meets all minimum program
requirements for in-state spending, Texas Filming Days and Texas Residency,
as determined by the Commission;
(B) The Commission determines to grant an award based
on the criteria specified in paragraph (3) of this subsection;
(C) The Content Document is appropriate; and
(D) Appropriated funds are then available at such time
of determination.
(5) If the Commission denies a Qualifying Application,
the Applicant will receive an e-mail notifying them that the Qualifying
Application has been denied. The notice will inform the Applicant
whether the denial is based on failure to meet the minimum program
requirements, insufficient economic impact or inappropriate content.
Qualifying Applications will be assessed at the point in time at which
they are received, and will not enter any queue in the event they
are denied.
(6) All funding decisions made by the Commission are
final and are not subject to appeal. Neither the approval of the Qualifying
Application nor any award of funds shall obligate the Commission in
any way to make any additional award of funds.
(d) Grant Agreement.
(1) Upon Commission approval of the Qualifying Application,
a grant agreement will be executed between the Commission and the
Applicant. The estimated grant amount will be based upon the Applicant's
estimated in-state spending.
(2) The grant agreement must be returned to the Commission
with original signatures; failure to return could cause the Commission
to disqualify the project.
(e) Periodic Tracking and Review. Once the grant agreement
has been executed by both parties, the Commission may periodically
review production activity including, but not limited to, in-state
spending, production locations and number of Texas Residents hired,
and may require documentation for all of the above.
(f) Encumbrance of Funds.
(1) Upon Commission approval of a Qualifying Application
and receipt of a signed Grant Agreement, the Office of the Governor
will encumber funds for the project.
(2) The amount encumbered for a project will be equal
to the estimated grant amount on the Grant Agreement.
(3) To encumber funds, an Applicant must have a Texas
Payee Identification Number. Applicants without an existing Texas
Payee Identification Number must submit a completed W-9 Form and a
Texas Application for Payee Identification Number Form.
(4) Provided sufficient funds are then available, the
amount encumbered may be adjusted by the Commission, at its sole election
having no obligation to do so, but only if an Applicant amends the
estimated Texas spending amount on their Qualifying Application in
writing, prior to submitting their Expended Budget as described in §121.11
of this chapter.
(g) Verifying Texas Residency.
(1) In order to verify Texas Residency, the Applicant
shall provide the Commission with completed Declaration of Texas Residency
Forms for each Texas Resident Crew and Cast member.
(2) To be considered a Texas Resident, a Crew or Cast
member must complete Sections I, II and III of the Declaration of
Texas Residency Form. Section III must be completed with a valid Texas
driver license, a valid Texas identification card or a current Texas
voter registration. A full-time student of a Texas Institution of
Higher Education, as defined by Texas Education Code, §61.003,
who does not have a Texas driver license, Texas identification card
or Texas voter registration may complete Section III of the form with
a current student identification card issued by a Texas Institution
of Higher Education.
(3) A minor who does not have a Texas driver license,
Texas identification card or Texas voter registration may have a Texas
Resident parent or legal guardian complete Section III of the form,
so long as such parent or legal guardian also signs Section III of
the form, indicating such relationship to the minor.
(4) A representative of the Applicant must complete
Section IV of the Declaration of Texas Residency Form.
(5) In the event that a Crew or Cast member possesses
one of the three documents specified in Section III of the Declaration
of Texas Residency Form, but not for the required 120 days, Texas
Residency may also be verified if:
(A) the project consists of at least 30 Filming Days;
and
(B) the applicant presents one of the following documents
naming said Crew or Cast member and dated at least 120 days and no
more than 13 months prior to the project's Principal Start Date:
(i) an executed HUD-1 settlement statement showing
the purchase of residential real property located in Texas; or
(ii) a notice of appraised value or bill assessing
property tax on residential real property located in Texas.
(6) If a Crew of Cast member does not possess any
of the three documents specified in Section III of the Declaration
of Texas Residency Form, Texas Residency may also be verified by attaching
to the Declaration a copy of their military ID card and their military
orders that:
(A) name said Crew or Cast member, or their spouse,
parent, or legal guardian, as applicable;
(B) show a permanent change of station to a military
station in Texas; and
(C) are dated at least 120 days prior to the project's
Principal Start Date.
(h) Texas Film Commission Logo. Having no obligation
to do so, the Commission may require the Applicant to include the
Texas Film Commission logo in the closing credits of a Feature Film,
Reality Series or Television Production, or in the credits of a Digital
Interactive Media Production.
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Source Note: The provisions of this §121.9 adopted to be effective March 10, 2008, 33 TexReg 2019; amended to be effective November 22, 2009, 34 TexReg 8029; amended to be effective August 28, 2011, 36 TexReg 5201; amended to be effective January 1, 2012, 36 TexReg 8818; amended to be effective September 5, 2013, 38 TexReg 5714; amended to be effective January 8, 2014, 39 TexReg 78 |