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 e-mail 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 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.
      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 e-mail notifying them that they do not qualify for the Moving Image Industry 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 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) If the Qualifying Application meets all minimum program requirements as determined by the Texas Film Commission, and appropriated funds are then available at such time of determination, the Applicant will receive an e-mail notifying them that the Qualifying Application has been approved.
   4. (4) If a Qualifying Application does not meet all minimum program requirements as determined by the Texas Film Commission, the Applicant will receive an e-mail notifying them that their application does not qualify for the Moving Image Industry 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 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.