Chapter 122. TEMPORARY USE OF STATE BUILDINGS AND GROUNDS BY TELEVISION OR FILM PRODUCTION COMPANIES
The Office of the Governor, Texas Film Commission (Commission) proposes new §§122.1 - 122.11, concerning the temporary use of state buildings and grounds by television or film production companies, as well as their use for free for 7 days each fiscal year.
The new rules are proposed because House Bill 374 of the 80th Legislature set forth the guidelines for using a state property for production activity, and the Texas Film Commission's oversight of such use.
Proposed §122.1 sets forth the background and purpose of the rules.
Proposed §122.2 sets forth the definitions of the rules.
Proposed §122.3 sets forth the eligibility requirements for an entity to apply for the use of state buildings or grounds for production activity, and an entity's eligibility to use the location for free.
Proposed §122.4 sets forth an entity's ineligibility to apply for the use of state buildings or grounds for production activity, and an entity's ineligibility to use the location for free.
Proposed §122.5 sets forth an entity's application process.
Proposed §122.6 sets forth the Commission's approval process.
Proposed §122.7 sets forth the entity's responsibilities.
Proposed §122.8 sets forth the procedures conducted by the Commission during an entity's production activity.
Proposed §122.9 sets forth the rules for allowing an entity to use a state property for free.
Proposed §122.10 sets forth the rights of the state property and the Commission.
Proposed §122.11 sets forth the reasons for an entity's disqualification from using a state property for production activity.
Bob Hudgins, Director of the Texas Film Commission, has determined that there will be no fiscal implications to the state or to local governments as a result of the proposed new rules. No cost to either government or the public will result from the proposed new rules. There will be no impact on small businesses or microbusinesses.
Mr. Bob Hudgins has also determined that the public benefit anticipated as a result of the new rules is a clearer understanding of who can use a state property for production activity, and how they apply for the use. No economic costs are anticipated for persons who are required to comply with the proposed new rules.
Written comments on the proposed new rules may be hand delivered to Office of the Governor, General Counsel Division, 1100 San Jacinto, Austin, Texas 78701, mailed to P.O. Box 12428, Austin, Texas 78711-2428, or faxed to (512) 463-1932 and should be addressed to the attention of Michael Bryant, Assistant General Counsel. Comments must be received within 30 days of publication of the proposed new rules.
The new rules are proposed pursuant to the Texas Government Code §2165.008 which directs the Commission to develop a procedure for the temporary use of state building or grounds by a production company, and Government Code, Chapter 2001, Subchapter B which prescribes the standards for rulemaking by state agencies.
No other codes, statutes, or articles are affected by this proposal.
§122.1.Background and Purpose.
(a) Background. House Bill 374 establishes the rules and processes for the temporary use of state properties by a production company for production activity. It also establishes that a state property can be used seven days during a fiscal year without charge, other than the reimbursement of additional costs. This Act takes effect September 1, 2007.
(b) Purpose.
(1) Texas has had a prodigious film industry for decades, and has always been popular with filmmakers worldwide for its varied and beautiful locations. It has been the Texas Film Commission's (TFC) responsibility since 1971 to help filmmakers find the right location, and state properties have always been popular choices. Establishing rules and processes for filming at these locations will make it easier for filmmakers to use their preferred locations, as well as take the burden of communicating with and supervising production companies off the state property.
(2) The Texas Film Commission is also responsible for attracting production activity to Texas because of its positive impact on the State's economy and workforce. The use of state properties for free for seven days of each fiscal year will be another tool that the TFC can use to attract filmmakers to Texas, increasing our competitive edge.
§122.2.Definitions.
The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:
(1) Actual costs--The costs incurred during production activity that have not already been paid for by the production company prior to the activity.
(2) Applicant--The entity coordinating locations for the Production Company, who acts as the representative of the Production Company for the locations.
(3) Certificate of liability insurance--The paper record showing that the Production Company has purchased insurance, the amount insured for, and who is insured under the policy.
(4) Commercials--Either an individual commercial, series of commercials, music video, infomercial, interstitial, or still shoot, that is made for the purpose of promoting a product, service, or idea.
(5) Desired location--The building or grounds that a production company is applying to use.
(6) Episodic television--A project, either narrative or documentary, consisting of a series of installments usually following the same story arc that is intended for distribution via broadcast or digital distribution via cable, satellite, the internet, or mobile electronic device.
(7) Film--Either a narrative or documentary project intended for distribution in theaters or by DVD, internet, or mobile electronic device.
(8) Filming days--The phase of the project during which the content is recorded.
(9) Fiscal year--The period between September 1st and August 31st of the next calendar year.
(10) In-state spending--The amount of money spent by a production company in Texas during all stages of the project.
(11) Location--A building or ground where production activity will take place.
(12) Location fee--An amount charged to the Applicant for each day production activity occurs on the property.
(13) Production activity--Any activity the production company engages in while on location, including, but not limited to, preparation, filming, parking, catering, and take down.
(14) Production company--The entity producing and creating the project, who is ultimately responsible for all production activity.
(15) Production insurance--A financial transaction between a production company and an external company securing all responsibility of damages and accidents while on location to the production company.
(16) Request for Use Application--The application that will be completed by the Applicant to ask for the use of a state property for production activity.
(17) Security deposit--A monetary amount given to the state property before commencement of production activity at that location which gives the state agency some protection for damage done to the location by the Production Company.
(18) State property--All locations owned and operated by the State of Texas for public or private use.
(19) Support location--An area of the property that is being used for production activity other than filming that can either be part of the filming location or a stand-alone location.
(20) Television project--Either a narrative or documentary project, including, but not limited to episodic series, miniseries, television movie (MOW), television pilot, or television episode, that is intended for distribution via broadcast or digital distribution via cable, satellite, the internet, or mobile electronic device.
§122.3.Eligibility.
(a) In order for a production company to be eligible to conduct production activity on a state property, they must meet the following requirements.
(1) must have production insurance in the amount required by the desired location that names the State of Texas as an additionally insured; and
(2) must be a film, television, or commercial project for educational, industrial, or commercial purposes.
(b) A production company may be eligible to receive some or all of their filming days free from location fees if they meet the following minimum requirements
(1) must have production insurance in the amount required by the desired location that names the State of Texas as an additionally insured; and
(2) must have a minimum in-state spending of $250,000 for film or television projects, or a minimum in-state spending of $100,000 for commercials.
§122.4.Ineligibility.
(a) A production company will not be eligible to conduct production activity on a state property if they fall under one of the following conditions.
(1) The production company does not have production insurance in the amount required by the desired location that names the State of Texas as an additionally insured; and/or
(2) The content of the project is pornographic in nature, as defined by Texas Penal Code §43.21.
(b) A production company is ineligible to receive a waiver of location fees if they fall under one of the following conditions.
(1) The production company does not have production insurance in the amount required by the desired location that names the State of Texas as an additionally insured; and/or
(2) The production company does not meet the minimum in-state spending requirements.
§122.5.Application Process.
(a) Once a production company has decided to use a state property for production activity, they must complete a Request for Use Application. The Application can be found at the Texas Film Commission Web site http://www.governor.state.tx.us/divisions/film, or by contacting the Texas Film Commission if internet access is not available or special needs facilitation is required.
(b) Applications must be received before the commencement of production activity at the desired location, and must include the following:
(1) a completed Request for Use Application; and
(2) a certificate of liability insurance in the amount required by the desired location that names the State as an additionally insured.
(c) An Applicant must fill out an application for each state property they wish to use.
§122.6.Approval Process.
(a) All applications will be reviewed in the order they are received by the Texas Film Commission.
(b) Once a production company submits an application, the Texas Film Commission will email the Applicant notifying them that their application has been received.
(c) The Texas Film Commission Staff will then review the application to determine if the production company meets the minimum qualifications, and that all the information provided is clear and reasonable. The Staff will contact the Applicant to verify that all the information on the application is correct. At that time, Applicants will have the ability to amend their application. The Texas Film Commission will determine whether an Applicant's amendment(s) may require them to reapply, and/or whether additional documentation from the Production Company is required for the approval process.
(d) The Texas Film Commission Staff will notify the state agency governing the Applicant's desired location in writing of the request of use once the application has been reviewed. The state agency and the Texas Film Commission will determine if the request is feasible based on location availability, description of production activity, and location's capabilities.
(e) The Texas Film Commission Staff will notify the Applicant in writing of whether or not their request has been approved once the application has been approved by all necessary parties.
(f) Once the Applicant has been approved, a contract will be executed between the Applicant and the State of Texas for use of the property.
§122.7.Applicant's Responsibilities.
(a) The Applicant is responsible for paying location fees.
(1) The Texas Film Commission, in conjunction with the Applicant's desired location and the state agency governing that property, will determine the fee to be charged for each day that production activity will occur on the property based on the length of use, loss of business, and impact on the property. The location fee will be stated in the contract between the Applicant and the state property, and is non-negotiable after that point.
(2) The Applicant shall deposit the location fees to the credit of the State of Texas, Comptroller of Public Accounts, and is expected to do so on or before the first day of production activity. Failure to follow these rules may result in the immediate disqualification of the Applicant or similar consequences.
(b) An Applicant may be required to pay a security deposit to the state agency governing the desired location in the amount determined by the Texas Film Commission and the agency. Failure to follow these rules may result in the immediate disqualification of the Applicant or similar consequences.
(c) The Applicant is responsible for paying any actual costs.
(1) An Applicant is required to reimburse the state property for actual costs incurred during the use of the location. These costs include, but are not limited to, repairs to the property from damage, trash removal, and excessive electricity and water use.
(2) The state agency shall notify the Applicant in writing of any actual costs that the Applicant is responsible for reimbursing. The Applicant must reimburse the cost no later than the 21st day after the date on which the written notification is received.
(d) The Applicant, Production Company and its employees are required to maintain a code of conduct any time they are on location that includes, but is not limited to, the following:
(1) no smoking;
(2) no alcohol;
(3) no illegal drugs;
(4) no soliciting;
(5) following location-specific dress code; and
(6) any other code of conduct required by the specific location.
§122.8.Process During Production Activity.
The Texas Film Commission will supervise all production activity on state property by a production company, and will determine, on a case by case basis, the supervisory conditions needed for the particular activity. The Texas Film Commission reserves the right to be on location during production activity, and to request additional documentation from the production company to determine that they used the state property in the manner agreed upon.
§122.9.Seven Days of Location Fee Waivers.
(a) The Texas Film Commission may allow each state property to be used without a location fee charge for seven days during each state fiscal year, and may determine the allocation of those days. The location fee waiver can only be used for filming days, and cannot count for areas of the state property used as a support location.
(b) The waiver does not apply to any other fees including, but not limited to, security deposits and actual costs.
(c) Projects that are eligible to receive location fee waivers are listed in §122.3 relating to Eligibility.
§122.10.Rights of the Location and the Texas Film Commission.
(a) All state properties and the agencies that govern those properties have the right to decline production activity on their property for reasons including, but not limited too, that the use will significantly interfere with the conduct of state business. A state agency can decide to deviate from the processes listed in this chapter after an initial application has been sent to the Texas Film Commission if it is determined to be the best course of action by both the Texas Film Commission and the agency. A property and/or a state agency can also elect for the Texas Film Commission to act as the liaison for the location.
(b) The Texas Film Commission reserves the right to take themselves out of the contract and negotiations for use of a state property if it is determined that the request does not fit within the parameters of the rules set forth in this chapter or if it is desired by the state agency. The Texas Film Commission also reserves the right to decline a request of use for any reason.
§122.11.Disqualifications.
A production company may be prohibited from conducting production activity on a state property at any time for the following reasons.
(1) Failure to submit required or additional documents;
(2) Submission of false information;
(3) Failure to pay location fees or security deposit on time;
(4) Using the property for pornographic scenes, as defined by Texas Penal Code §43.21;
(5) Ineligibile project as listed in §122.4 relating to Inelegibility; and
(6) Not following location's code of conduct.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on February 1, 2008.
TRD-200800651
Michael Bryant
Assistant General Counsel
Texas Film Commission
Earliest possible date of adoption: March 16, 2008
For further information, please call: (512) 463-9200