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 review 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 may reapply before 5:00 p.m. Central Time on the last business day prior to the principal start date.
   2. (2) After an email is sent to a qualifying applicant, the Texas Film Commission will contact the applicant to verify that all the information on the application is correct. Applicants will have the ability at that time to amend 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 budget to identify eligible expenditures and to determine if the applicant meets the minimum in-state spending.
   2. (2) Texas Film Commission will provide a summary to the Governor's Office of Budget and Planning for verification and determination of the grant agreement.
   3. (3) The Texas Film Commission will also review project's content to determine if it is appropriate.

4. (d) Grant Agreement.

   1. (1) Upon Texas Film Commission approval of the Qualifying Application and additional materials, 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, with a 10% contingency included in the encumberment. The project's application summary will be attached to the grant agreement.
   2. (2) The grant agreement must be returned to the Texas Film Commission within 7 business days with original signatures.
5. (e) Periodic Tracking and Review. Once the grant agreement has been executed by both parties, the Texas Film Commission and/or the Governor's Office of Budget and Planning may periodically review production activity including, but not limited to, in-state spending, shooting locations and number of Texas residents hired, and may require documentation for all of the above.

6. (f) Verifying Texas Residency. The applicant will be required to provide the Texas Film Commission with proof of each employee's residency status. The applicant can show proof by providing a copy of each employee's I-9 form if it has been verified with a current Texas driver license or identification certificate. If the I-9 form is verified with a document other than a Texas driver license or identification certificate, the applicant must provide a copy of the employee's I-9 and a copy of one of the following documents:

   1. (1) Current Texas driver license or identification certificate.
   2. (2) Current Texas voter registration card.
   3. (3) Current student identification card from a Texas Academic Institution.
   4. (4) A utility bill in the employee's name that verifies residency at a Texas address at least 120 days prior to the principal start date.

Source Note:The provisions of this §121.9 adopted to be effective March 10, 2008, 33 TexReg 2019.