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 an application with required materials, and meets all qualifications, the applicant will receive an email notifying them that the Texas Film Commission has received their complete application and the preliminary award determination process will begin.
      2. (B) If a project submits an application without the required materials, but initially appears to meet the minimum qualifications, the applicant will receive an email 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.
      3. (C) If a project submits an application with or without required materials and does not meet the minimum qualifications, the applicant will receive an email notifying them that they do not qualify for the incentive program, but if minimum qualifications are met, the applicant may reapply before 5:00 p.m. Central Time on the last business day prior to the principal start date.
   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 Award Determination.

   1. (1) During the preliminary award determination process, the Texas Film Commission will review the project's 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 project's content to determine if it is appropriate.
   3. (3) If an application meets all minimum program requirements as determined by the Texas Film Commission, the applicant will receive an email notifying them that their application has been approved.
   4. (4) If an application does not meet all minimum program requirements as determined by the Texas Film Commission, the applicant will receive an email notifying them that their application does not qualify for the incentive program.

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.
   2. (2) The grant agreement must be returned to the Texas Film Commission within 7 business days with original signatures.
   3. (3) Feature Films, Television Programs and Visual Effects Projects for 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 plus a 10% contingency.
   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) The amount encumbered can be adjusted by the Office of the Governor if a project amends the estimated Texas spending amount on their application so that it affects their estimated grant amount by 10% or more.

7. (g) Verifying Texas Residency.

   1. (1) The applicant will be required to provide the Texas Film Commission with proof of the residency status of each Texas resident crew or cast member.

   2. (2) The applicant can show proof of Texas residency by submitting completed Declaration of Texas Residency Forms for each crew or cast member.

      1. (A) To be considered a Texas resident, a crew or cast member must complete section 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.

         1. (i) 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.
         2. (ii) 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.
      2. (B) A representative of the applicant or production company must complete section IV of the Declaration of Texas Residency Form.

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.