TITLE 13. CULTURAL RESOURCES

PART 8. TEXAS FILM COMMISSION

CHAPTER 121. TEXAS MOVING IMAGE INDUSTRY INCENTIVE PROGRAM

The Texas Film Commission (Commission) within the Office of the Governor, Economic Development and Tourism Office adopts amendments to 13 TAC §§121.1, 121.2, 121.7, 121.8, 121.10 - 121.12, and the repeal of 121.15 relating to the Texas Moving Image Industry Incentive Program (TMIIIP) under Subchapter B, Chapter 485 of the Texas Government Code. The rules are adopted without changes to the proposed text as published in the December 16, 2016, issue of the Texas Register (41 TexReg 9815).

Reasoned Justification for Adoption and Repeal

The CPA audit opinion requirement in §121.15 is repealed. Since current Commission practice is that grantee expenditures for qualifying projects are subject to verification by the Commission and an additional compliance review by the Office of the Governor, the requirement for grantees to obtain a CPA audit opinion is administratively unnecessary. Repeal of the CPA audit opinion requirement necessitates the adopted amendments to rules: §121.1(a) (Background and Purpose); §121.2 (Definitions); §121.7 (Underutilized and Economically Distressed Areas); §121.11 (Confirmation and Verification of Texas Expenditures); §121.12 (Disbursement of Funds).

The Commission also adopts confirming amendments to clarify the current Commission practice that grantee expenditures for qualifying projects are subject to verification by the Commission and an additional compliance review by the Office of the Governor. The adopted amendments include modifications to §121.1 (Background and Purpose); §121.11 (Confirmation and Verification of Texas Expenditures) and §121.12 (Disbursement of Funds).

Finally, the Commission adopts amendments to accept TMIIIP applications up to 120 calendar days prior to the commencement of production of eligible projects. The adopted amendments include modifications to §121.8 (Grant Application) and §121.10 (Disqualification of an Application).

Public Comments

No comments were received regarding the proposed adoptions.

13 TAC §§121.1, 121.2, 121.7, 121.8, 121.10 - 121.12

Statutory Authority

The rules are adopted under §485.022 and §485.024 of the Texas Government Code, which require the Commission to develop procedures for the administration of grant awards under the TMIIIP program.

Cross Reference to Statute

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 7, 2017.

TRD-201700866

Diane Morris

Deputy General Counsel

Texas Film Commission

Effective date: March 27, 2017

Proposal publication date: December 16, 2016

For further information, please call: (512) 463-1955


13 TAC §121.15.

Statutory Authority

The repeal is adopted under §485.022 and §485.024 of the Texas Government Code, which require the Commission to develop procedures for the administration of grant awards under the TMIIIP program, including rules prescribing the methods used for determining grant amounts based on an analysis of in-state spending.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 7, 2017.

TRD-201700867

Diane Morris

Deputy General Counsel

Texas Film Commission

Effective date: March 27, 2017

Proposal publication date: December 16, 2016

For further information, please call: (512) 463-1955