1-1 AN ACT
1-2 relating to the Texas Film Industry Development Loan Guarantee
1-3 Program.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 403.327, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 403.327. INDEMNITY REQUIREMENT. For each film to be
1-8 produced with the proceeds from a loan approved to be guaranteed
1-9 under the program, the producer of the film shall provide an
1-10 indemnity against loss in an amount equal to the full amount of the
1-11 loan guarantee. The indemnity must be issued to the comptroller as
1-12 the beneficiary of the indemnity by:
1-13 (1) an insurance company, surety company, or financial
1-14 institution that [is]:
1-15 (A) is [(1)] licensed and authorized to do
1-16 business in this state; and
1-17 (B) is [(2)] approved by the comptroller; or
1-18 (2) an eligible surplus lines insurer that:
1-19 (A) meets the requirements of Article 1.14-2,
1-20 Insurance Code, and rules adopted by the commissioner under that
1-21 article; and
1-22 (B) is approved by the comptroller.
1-23 SECTION 2. Section 403.329, Government Code, is amended to
1-24 read as follows:
2-1 Sec. 403.329. ISSUANCE OF LOAN GUARANTEE. (a) The
2-2 comptroller may not approve the issuance of a loan guarantee under
2-3 the program unless:
2-4 (1) the loan for which the guarantee is sought meets
2-5 the qualifications of a Texas film production loan under Section
2-6 403.325;
2-7 (2) the comptroller approves the application for the
2-8 loan guarantee;
2-9 (3) the comptroller has received the application fee
2-10 required by Section 403.326(b); and
2-11 (4) the indemnity requirements of Section 403.327, the
2-12 surety bond requirements of Section 403.328, and any other bond or
2-13 insurance requirements prescribed under this subchapter or by
2-14 comptroller rule have been satisfied.
2-15 (b) The comptroller may require the payment of a guarantee
2-16 fee for approval of the issuance of a loan guarantee. The
2-17 comptroller may set the fee in an amount sufficient to fund the
2-18 administration of the program.
2-19 SECTION 3. Section 403.332, Government Code, is amended by
2-20 adding Subsections (c) and (d) to read as follows:
2-21 (c) Subject to the limit established under Subsection (a),
2-22 the comptroller may approve loan guarantees in an amount that
2-23 exceeds the amount available in the Texas film industry
2-24 administrative fund established under Section 403.323. Loan
2-25 guarantees approved by the comptroller may not exceed the
2-26 guarantee-to-reserve ratio established by the comptroller under
2-27 Subsection (d).
3-1 (d) The comptroller by rule may adopt a guarantee-to-reserve
3-2 ratio that determines the amount of loan guarantees that may be
3-3 made that exceed the amount available in the fund. The ratio of
3-4 guarantees to the amount of money available in the fund may not
3-5 exceed five to one. The comptroller shall review the
3-6 guarantee-to-reserve ratio annually and adjust the ratio as
3-7 appropriate, considering the payment experience of the loans.
3-8 SECTION 4. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3589 was passed by the House on April
20, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 3589 was passed by the Senate on May
23, 2001, by the following vote: Yeas 30, Nays 0, 1 present, not
voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor