Enrolled Bill Summary

            House Bill 1687 amends the Government Code to establish the Texas film industry development loan guarantee program administered by the comptroller. Eligible Texas films are those, for theater showing or telecast, with a budget of $1 million to $5 million. At least 70 percent of that budget must go to certain production costs, and at least 80 percent of the budget for production costs must go to goods and services of Texas derivation. Under the program, a Texas film producer obtains financing from a Texas lender, not to exceed 60 percent of the budget, and the state may guarantee up to 80 percent of the loan. The act requires a surety bond for film completion and an indemnity equal to the guarantee amount, designating the comptroller as beneficiary. Not more than $50 million of guarantees may be outstanding at any one time. The act creates a third degree felony offense for certain false applications or submissions. It directs the comptroller to report quarterly on the program to the legislature. The program is subject to sunset review and, if not renewed, expires September 1, 2005.