The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:

1. (1) Applicant--

   1. (A) For feature films, television programs, reality television projects, educational or instructional videos, or visual effects projects for feature films, television programs, or educational or instructional videos, either the production company producing the project or the owner of the copyright.
   2. (B) For commercials and visual effects projects for commercials, the production company, advertising agency, or client.
   3. (C) For video games, the game developer or game publisher.
2. (2) Assignee--A third party designated by the applicant as the recipient of the grant.
3. (3) Business day--A day other than Saturday, Sunday or a legal Federal holiday.
4. (4) Cast--An actor paid by the applicant or production company for performing a role in Texas, including but not limited to, featured actors, extras, stunt performers, voice-over talent, hosts, judges, announcers and roles or performers that appear on a recurring basis.
5. (5) Crew--An individual worker paid by the applicant or production company for work performed in Texas that is directly contracted and credited for a specific position. An individual may work in more than one position on a production.
6. (6) Digital interactive media production--A video game.
7. (7) Eligible projects--Feature films, television programs, reality television projects, commercials, educational or instructional videos, visual effects projects and video games that meet the qualifying requirements described in §121.3 of this chapter.
8. (8) Episodic television series--A television program consisting of multiple episodes of a single season.
9. (9) Expended budget--The final verifying documentation submitted by an applicant at the completion of a project that shows the total eligible in-state spending and includes all documentation considered necessary to show compliance with the requirements of the incentive program.

10. (10) Filmed--The creation or digital manipulation of a moving image project; the actual production activity for various industry segments:

    1. (A) For a live action feature film, television program, reality television, educational or instructional video, or commercial project, the production of the project involving the capture of images by a camera.
    2. (B) For an animated feature film, television program, commercial, or educational or instructional video project, the creation of computer generated digital images or the use of a camera to film with stop motion or time lapse photography.
    3. (C) For a video game, the use of computers and software to create interactive digital images and visual effects.
    4. (D) For a visual effects project, the finishing of a feature film, television program, commercial, or educational or instructional video with the creation of visual effects including, but not limited to, editing, visual effects, sound effects, music or animation.
11. (11) Filming day--A day of production as defined in paragraph (29) of this section.
12. (12) Game console--An electronic device or machine used by consumers primarily for the purpose of playing video games, including, but not limited to, the Nintendo Wii, the Sony PlayStation 3, the Sony PlayStation 2 and the Microsoft Xbox360.
13. (13) Goods and services--Physical products and services domiciled and used in Texas that are directly attributable to the production of a project including, but not limited to, contractors, subcontractors and service providers, and product or equipment purchases, rentals and leases.
14. (14) Handheld console--A portable electronic device used by a consumer primarily for the purpose of playing video games, including, but not limited to, the Sony PlayStation Portable, the Nintendo DS, the Nintendo DSi, the Nintendo Game Boy Advanced and the Nintendo Game Boy Color.
15. (15) Ineligible projects--Projects that do not qualify for the grant, as stated in §121.4 of this chapter.
16. (16) In-state spending (Texas spend)--The eligible amount of money spent in Texas during pre-production, production and postproduction of the project.
17. (17) Interstitial television program--Short television programming shown between regularly scheduled programs or events.
18. (18) Loan-out company--A company controlled by the loaned-out employee.
19. (19) Mobile electronic--A portable electronic device used by a consumer for the purpose of mobile computing and communication, including, but not limited to, personal digital assistants (PDAs) and mobile phones.
20. (20) Moving image project--An eligible project as defined in §121.3 of this chapter.
21. (21) Music performance production--Productions featuring musical performances that are more than 30 minutes in length.
22. (22) Music video--Productions featuring musical performances that are less than 30 minutes in length.
23. (23) Pass through company--A company or person that acts as an agent or broker for companies or persons outside of Texas to provide goods, services or labor for the purpose of taking advantage of the Texas Moving Image Industry Incentive Program.
24. (24) Personal computer--An electronic device or machine used by a consumer for a variety of applications, including playing games. Games for this platform include those which play on the computer's CPU, as well as web and online game applications that are played using the personal computer.
25. (25) Physical production--The period encompassing pre-production, production, and postproduction.
26. (26) Postproduction--The period of physical production that occurs after the end of production, as defined in paragraph (29) of this section; including but not limited to, editing, music, sound, visual effects and animation.
27. (27) Pre-production--The period of physical production that occurs before the start of production as defined in paragraph (29) of this section.

28. (28) Principal start date--

    1. (A) For a live action feature film, television program, reality television, educational or instructional video or commercial project, this is the first day of principal photography.
    2. (B) For a video game or animated project, this is the first day of production.
    3. (C) For a visual effects project, this is the first day of the stand alone finishing process including, but not limited to, the editing, visual effects, sound, music or animation created for feature films, television programs, commercials or educational or instructional videos.

29. (29) Production--

    1. (A) For a live action feature film, television program, reality television, educational or instructional video or commercial project, this is the period of physical production between the first and last days of principal photography, inclusive.
    2. (B) For a video game or animated project, this is the period of physical production between the end of pre-production and the creation of the gold master or completion of the project.
    3. (C) For a visual effects project, this is the stand alone finishing process including, but not limited to, the editing, visual effects, sound, music or animation created for a feature film, television program, commercial, or educational or instructional video project.
30. (30) Production company--A film production company, television production company, video game developer, commercial production company, animation production company, visual effects production company or postproduction company.
31. (31) Reality series--A reality television project consisting of multiple episodes of a single season.
32. (32) Series of commercials--More than one commercial created in a contiguous production period for the same client.
33. (33) Series of educational or instructional videos--More than one educational or instructional video created in a contiguous production period for the same client.
34. (34) Stand-alone arcade machine--An electronic device used by a business or consumer solely for bona fide amusement purposes that reward the player exclusively with non-cash merchandise prizes or a representation of value redeemable for those items, as outlined in Texas Penal Code, §47.01.
35. (35) Texas resident--An individual who is permanently domiciled in Texas for at least 120 days prior to the principal start date of the project, unless enrolled as a full-time student at a Texas Institution of Higher Education, as defined by Texas Education Code, §61.003; and has completed a Declaration of Texas Residency Form.
36. (36) Texas spend option--Feature films, television programs and visual effects projects for feature films and television programs may choose a total spending provision to determine their grant amount that will include all eligible in-state spending (including eligible wages paid to Texas residents).
37. (37) Texas wage option--Feature films, television programs and visual effects projects for feature films and television programs may choose a wages only provision to determine their grant amount that will only include eligible wages paid to Texas residents.

38. (38) Underutilized and economically distressed area--

    1. (A) Underutilized area--An area or municipality of the state that receives less than 15 percent of the total film and television production in the state during a fiscal year as determined by the Texas Film Commission. Areas or municipalities that receive in excess of 15 percent of the total film and television production in the state will be determined to include the area within a thirty mile radius from that area's largest municipality's city hall.
    2. (B) Economically distressed area--An area within the above-determined thirty mile radius where the median household income does not exceed 75 percent of the median household income as determined by the Texas State Data Center, University of Texas San Antonio.
39. (39) Wages--Compensation paid to an individual for work performed. Payment methods may include, but are not limited to, direct payments, payments through an agent or agency, payments through a loan-out company or payments through a payroll service. Wages may include, but are not limited to, gross wages, per diems, employer paid Social Security (Old Age, Survivors, and Disability Insurance (OASDI)) payments, employer paid Medicare (MEDI) payments, employer paid Federal Unemployment Insurance (FUI) payments, employer paid State Unemployment Insurance (SUI) payments, employer paid Pension, Health and Welfare payments and employer paid Vacation and Holiday payments.
40. (40) Webisode--A short episode or series of episodes, either narrative or documentary, that is distributed initially as an Internet download or stream.

Source Note:The provisions of this §121.2 adopted to be effective March 10, 2008, 33 TexReg 2019; amended to be effective November 22, 2009, 34 TexReg 8029.