By Hunter H.B. No. 3589
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
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 For each film to be produced with the proceeds from a loan
1-8 approved to be guaranteed under the program, the producer of the
1-9 film shall provide an indemnity against loss in an amount equal to
1-10 the full amount of the loan guarantee. The indemnity must be
1-11 issued to the comptroller as the beneficiary of the indemnity by an
1-12 insurance company, surety company, surplus lines insurer, or
1-13 financial institution that [is]:
1-14 (1) is licensed and authorized to do business in this
1-15 state[;] and is approved by the comptroller; or
1-16 (2) for surplus lines insurers, meets the requirements
1-17 of Article 1.14-2, Insurance Code, and rules adopted by the State
1-18 Board of Insurance under that article, and is approved by the
1-19 comptroller.
1-20 SECTION 2. Section 403.329, Government Code, is amended to
1-21 read as follows:
1-22 (a) The comptroller may not approve the issuance of a loan
1-23 guarantee under the program unless:
2-1 (1) the loan for which the guarantee is sought meets
2-2 the qualifications of a Texas film production loan under Section
2-3 403.325;
2-4 (2) the comptroller approves the application for the
2-5 loan guarantee;
2-6 (3) the comptroller has received the application fee
2-7 required by Section 403.326(b); and
2-8 (4) the indemnity requirements of Section 403.327, the
2-9 surety bond requirements of Section 403.328, and any other bond or
2-10 insurance requirements prescribed under this subchapter or by
2-11 comptroller rule have been satisfied.
2-12 (b) The comptroller may provide that a guarantee fee will be
2-13 payable as a condition of comptroller approval of the issuance of a
2-14 loan guarantee. The comptroller may set the guarantee fee in an
2-15 amount sufficient to fund the administration of this program.
2-16 SECTION 3. Section 403.332, Government Code, is amended by
2-17 adding new Subsections (c) and (d) to read as follows:
2-18 (c) Subject to the limitation specified in subsection (a),
2-19 the comptroller may approve guarantees in an amount that exceeds
2-20 the amount available in the fund established pursuant to Section
2-21 403.323. Loan guarantees may not exceed the guarantee-to-reserve
2-22 ratio established by the comptroller under Subsection (d).
2-23 (d) The comptroller by rule may adopt a guarantee-to-reserve
2-24 ratio that determines the amount of loan guarantees that may be
2-25 made that exceed the amount available in the fund. The ratio of
2-26 guarantees to the amount of money available in the fund may not
3-1 exceed five to one. The comptroller shall review the
3-2 guarantee-to-reserve ratio annually and adjust the ratio as
3-3 appropriate, considering the payment experience of the loans.
3-4 SECTION 4. EFFECTIVE DATE. This Act takes effect September 1,
3-5 2001.