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TITLE 13CULTURAL RESOURCES
PART 8TEXAS FILM COMMISSION
CHAPTER 121TEXAS MOVING IMAGE INDUSTRY INCENTIVE PROGRAM
RULE §121.9Processing and Review of Applications

(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.


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

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