1. (a) All applications will be reviewed in the order they are received.

2. (b) Initial Review.

   1. (1) Each application will go through an initial review process when the Qualifying Application has been received.

      1. (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 has received their complete application and the preliminary eligibility determination process will begin.
      2. (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 in a timely manner may result in an application being disqualified.
   2. (2) Applicants will have the ability to amend information on their application. The Texas Film Commission may determine whether an Applicant's amendment(s) will require them to reapply or not.

3. (c) Preliminary Eligibility Determination.

   1. (1) During the preliminary eligibility determination process, the Texas Film 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. (2) The Texas Film 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. (3) Finally, the Texas Film 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:

      1. (A) The financial viability of the Applicant and the likelihood of successful project execution and planned spending in the State of Texas;
      2. (B) Proposed spending on existing state production infrastructure (such as soundstages and industry vendors);
      3. (C) The number of Texas jobs estimated to be created by the project;
      4. (D) The ability to promote Texas as a tourist destination through the conduct of the project and planned expenditure of funds;
      5. (E) The magnitude of estimated expenditures in Texas; and
      6. (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. (4) The Applicant will receive an e-mail notifying them that the Qualifying Application has been approved if:

      1. (A) The Qualifying Application meets all minimum program requirements for in-state spending, Texas Filming Days and Texas Residency, as determined by the Texas Film Commission;
      2. (B) The Texas Film Commission determines to grant an award based on the criteria specified in paragraph (3) of this subsection;
      3. (C) The Content Document is appropriate; and
      4. (D) Appropriated funds are then available at such time of determination.
   5. (5) If the Texas Film 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.

4. (d) Grant Agreement.

   1. (1) Upon Texas Film Commission approval of the Qualifying Application, a grant agreement will be executed between the Texas Film Commission and the Applicant. The estimated grant amount will be based upon the Applicant's estimated in-state spending and election, as the case may be, of the Texas Spend Option or the Texas Wage Option, as applicable.
   2. (2) The grant agreement must be returned to the Texas Film Commission with original signatures; failure to return could cause the Texas Film Commission to disqualify the project.
   3. (3) Feature Films and Television Programs that must choose between the Texas Spend Option and the Texas Wage Option to calculate their grant amount will not be able to change the option selected once the grant agreement has been signed and returned to the Texas Film Commission.
5. (e) Periodic Tracking and Review. Once the grant agreement has been executed by both parties, the Texas Film 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.

6. (f) Encumbrance of Funds.

   1. (1) Upon Texas Film 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. (2) The amount encumbered for a project will be equal to the estimated grant amount on the Grant Agreement.
   3. (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. (4) Provided sufficient funds are then available, the amount encumbered may be adjusted by the Office of the Governor, at its sole election having no obligation to do so, if an Applicant amends the estimated Texas spending amount on their Qualifying Application, or ultimately submits spending documentation so that it affects their estimated grant amount.

7. (g) Verifying Texas Residency.

   1. (1) In order to verify Texas Residency, the Applicant shall provide the Texas Film Commission with completed Declaration of Texas Residency Forms for each Texas Resident Crew and Cast member.
   2. (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. (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. (4) A representative of the Applicant must complete Section IV of the Declaration of Texas Residency Form.
8. (h) Texas Film Commission Logo. Upon written request by an Applicant, having no obligation to do so, the Texas Film Commission may provide, having no obligation to do so, the Texas Film Commission logo to the Applicant so that the Applicant can include such logo in the closing credits of a Feature Film, Reality Series or Television 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.