1-1 By: Hunter (Senate Sponsor - Armbrister) H.B. No. 3589
1-2 (In the Senate - Received from the House April 23, 2001;
1-3 April 24, 2001, read first time and referred to Committee on
1-4 Business and Commerce; May 10, 2001, reported favorably by the
1-5 following vote: Yeas 6, Nays 0; May 10, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the Texas Film Industry Development Loan Guarantee
1-9 Program.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 403.327, Government Code, is amended to
1-12 read as follows:
1-13 Sec. 403.327. INDEMNITY REQUIREMENT. For each film to be
1-14 produced with the proceeds from a loan approved to be guaranteed
1-15 under the program, the producer of the film shall provide an
1-16 indemnity against loss in an amount equal to the full amount of the
1-17 loan guarantee. The indemnity must be issued to the comptroller as
1-18 the beneficiary of the indemnity by:
1-19 (1) an insurance company, surety company, or financial
1-20 institution that [is]:
1-21 (A) is [(1)] licensed and authorized to do
1-22 business in this state; and
1-23 (B) is [(2)] approved by the comptroller; or
1-24 (2) an eligible surplus lines insurer that:
1-25 (A) meets the requirements of Article 1.14-2,
1-26 Insurance Code, and rules adopted by the commissioner under that
1-27 article; and
1-28 (B) is approved by the comptroller.
1-29 SECTION 2. Section 403.329, Government Code, is amended to
1-30 read as follows:
1-31 Sec. 403.329. ISSUANCE OF LOAN GUARANTEE. (a) The
1-32 comptroller may not approve the issuance of a loan guarantee under
1-33 the program unless:
1-34 (1) the loan for which the guarantee is sought meets
1-35 the qualifications of a Texas film production loan under Section
1-36 403.325;
1-37 (2) the comptroller approves the application for the
1-38 loan guarantee;
1-39 (3) the comptroller has received the application fee
1-40 required by Section 403.326(b); and
1-41 (4) the indemnity requirements of Section 403.327, the
1-42 surety bond requirements of Section 403.328, and any other bond or
1-43 insurance requirements prescribed under this subchapter or by
1-44 comptroller rule have been satisfied.
1-45 (b) The comptroller may require the payment of a guarantee
1-46 fee for approval of the issuance of a loan guarantee. The
1-47 comptroller may set the fee in an amount sufficient to fund the
1-48 administration of the program.
1-49 SECTION 3. Section 403.332, Government Code, is amended by
1-50 adding Subsections (c) and (d) to read as follows:
1-51 (c) Subject to the limit established under Subsection (a),
1-52 the comptroller may approve loan guarantees in an amount that
1-53 exceeds the amount available in the Texas film industry
1-54 administrative fund established under Section 403.323. Loan
1-55 guarantees approved by the comptroller may not exceed the
1-56 guarantee-to-reserve ratio established by the comptroller under
1-57 Subsection (d).
1-58 (d) The comptroller by rule may adopt a guarantee-to-reserve
1-59 ratio that determines the amount of loan guarantees that may be
1-60 made that exceed the amount available in the fund. The ratio of
1-61 guarantees to the amount of money available in the fund may not
1-62 exceed five to one. The comptroller shall review the
1-63 guarantee-to-reserve ratio annually and adjust the ratio as
1-64 appropriate, considering the payment experience of the loans.
2-1 SECTION 4. This Act takes effect September 1, 2001.
2-2 * * * * *