2007 Legislation
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SENATE BILL NO. 1156 – Film/TV production business, rebate

SENATE BILL NO. 1156

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S1156aa....................................................by STATE AFFAIRS
FILM AND TELEVISION PRODUCTION - Adds to and amends existing law to create
the Film and Television Production Business Rebate Fund; to define terms;
to provide the amount of total incentive; to provide qualifications for the
rebate; to provide procedures; to provide for evaluation of the economic
impact of the rebate program; and to provide for a report.
                                                                        
02/14    Senate intro - 1st rdg - to printing
02/15    Rpt prt - to Com/HuRes
02/28    Rpt out - to 14th Ord
03/01    Rpt out amen - to engros
03/02    Rpt engros - 1st rdg - to 2nd rdg as amen
03/05    2nd rdg - to 3rd rdg as amen
03/07    3rd rdg as amen - PASSED - 23-12-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Darrington, Geddes, Hammond, Heinrich, Jorgenson,
      Kelly, Keough, Langhorst, Lodge, Malepeai, McGee, McKague,
      Richardson, Stennett, Werk
      NAYS -- Corder, Davis, Fulcher, Gannon, Goedde, Hill, Little,
      McKenzie, Pearce, Schroeder, Siddoway, Stegner
      Absent and excused -- None
    Floor Sponsors - President Pro Tempore Geddes &
    Stennett
    Title apvd - to House
03/08    House intro - 1st rdg - to Com/HuRes
03/14    Rpt out - rec d/p - to 2nd rdg
03/15    2nd rdg - to 3rd rdg
03/21    3rd rdg - FAILED - 33-34-3
      AYES -- Anderson, Bell, Black, Block, Boe, Bradford, Chadderdon,
      Chavez, Chew, Collins, Edmunson, Eskridge, Hart, Jaquet, Killen,
      King, LeFavour, Nielsen, Pasley-Stuart, Patrick, Pence, Ring, Ringo,
      Ruchti, Rusche, Sayler, Schaefer, Shepherd(2), Shively, Smith(30),
      Snodgrass, Thayn, Wills
      NAYS -- Barrett, Bayer, Bedke, Bilbao, Bock, Bolz, Brackett, Clark,
      Crane, Durst, Hagedorn, Harwood, Henbest, Henderson, Kren, Labrador,
      Lake, Loertscher, Luker, Marriott, Mathews, Mortimer, Moyle, Nonini,
      Raybould, Roberts, Shepherd(8), Shirley, Smith(24), Stevenson, Vander
      Woude, Wood(27), Wood(35), Mr. Speaker
      Absent and excused -- Andrus, McGeachin, Trail
    Floor Sponsors - Schaefer, Ringo & Bradford
    Ret'd to Senate
    Filed in Office of the Secretary of Senate

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1156
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO A FILM AND TELEVISION PRODUCTION BUSINESS  REBATE  FUND;  AMENDING
  3        CHAPTER  47,  TITLE  67,  IDAHO  CODE,  BY  THE  ADDITION OF A NEW SECTION
  4        67-4727, IDAHO CODE, TO CREATE IN THE STATE TREASURY THE FILM AND  TELEVI-
  5        SION PRODUCTION BUSINESS REBATE FUND, TO DEFINE "QUALIFIED PRODUCTION," TO
  6        PROVIDE  QUALIFICATION  FOR THE REBATE, TO PROVIDE THE AMOUNT OF THE TOTAL
  7        ANNUAL INCENTIVE, TO DEFINE "BASE INVESTMENT" AND "APPLICANT," TO  PROVIDE
  8        PROCEDURES, TO PROVIDE FOR EVALUATION OF THE ECONOMIC IMPACT OF THE REBATE
  9        PROGRAM AND TO PROVIDE FOR A REPORT; AND PROVIDING A SUNSET DATE.
                                                                        
 10    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 11        SECTION  1.  That  Chapter  47,  Title 67, Idaho Code, be, and the same is
 12    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 13    ignated as Section 67-4727, Idaho Code, and to read as follows:
                                                                        
 14        67-4727.  FILM  AND  TELEVISION PRODUCTION BUSINESS REBATE FUND. (1) There
 15    is hereby created in the state treasury a fund to be known  as  the  film  and
 16    television  production  business  rebate  fund  to which shall be credited all
 17    moneys that may be appropriated, apportioned, allocated and paid back to  that
 18    fund.  Moneys  in this fund shall be used exclusively as provided in this sec-
 19    tion and may be  appropriated for such purposes as authorized by this section.
 20    Moneys in the fund shall be invested by the state treasurer in the same manner
 21    as provided under section 67-1210, Idaho Code,  with  respect  to  other  idle
 22    moneys  in  the  state  treasury. Interest earned  on the investments shall be
 23    credited to the fund. The purpose of the fund is to  stimulate  new  film  and
 24    television  production business expenditures in the state of Idaho. Applicants
 25    may apply for a rebate from the fund by filling out an application and  satis-
 26    fying the department's criteria for a state certified production.
 27        (2)  The  rebate  from  the fund is available for qualified productions in
 28    Idaho. As used in this section, a "qualified production" is a feature film,  a
 29    television film, a commercial for a product or service, a documentary, a tele-
 30    vision  pilot or each episode of a television series which is intended as pro-
 31    gramming for a national audience. A qualified production does  not  include  a
 32    production  featuring  any of the following: news, current events, weather and
 33    market reports, public programming, talk shows,  game  shows,  sports  events,
 34    award  shows or other gala events; a production that solicits funds, a produc-
 35    tion containing obscene material or a production primarily for private, polit-
 36    ical, industrial, corporate or institutional purposes.
 37        (3)  To qualify for the rebate from the fund, twenty percent (20%) of  the
 38    crew  working  in  Idaho must be Idaho residents. Production expenses that are
 39    eligible for rebate include all production goods and services  including,  but
 40    not limited to, wages and salaries, construction, operations, editing, photog-
 41    raphy,  sound synchronization, lighting, makeup, wardrobe and accessories, the
 42    cost of rental facilities and equipment, leasing of vehicles,  costs  of  food
 43    and  lodging,  digital or tape editing, film processing, sound mixing, special
                                                                        
                                       2
                                                                        
  1    and visual effects, total aggregate payroll or music, if  performed,  composed
  2    or  recorded by a musician who is a resident of Idaho. Marketing and advertis-
  3    ing costs shall not  be  applied toward the rate, nor can star salaries,  pro-
  4    ducer  and  director salaries or script costs, nor can any indirect costs, any
  5    amounts that are later reimbursed,  any  costs  related  to  the  transfer  or
  6    rebates  or  any  amounts  that are paid to persons or entities as a result of
  7    their participation in profits from the production.
  8        (4)  The total annual  incentive shall be capped at  one  million  dollars
  9    ($1,000,000).  The total amount of any incentive granted pursuant to this sec-
 10    tion may not exceed five hundred thousand dollars ($500,000) nor  twenty  per-
 11    cent (20%) of an individual qualified production's expenses.
 12        (5)  As  used  in  this  section,  "base investment" shall mean the actual
 13    investment made and expended by a state certified production in Idaho as  pro-
 14    duction  expenditures incurred in Idaho that are directly used in a state cer-
 15    tified production or productions. The rebate shall be calculated as a percent-
 16    age of the total base investment dollars certified  per  project.  The  rebate
 17    shall  be  earned  by  investors at the time expenditures are made by a motion
 18    picture production company in a state certified production. As  used  in  this
 19    section,  "applicant" means a taxpayer that is a film production business that
 20    is operating or has operated an accredited production located within the state
 21    of Idaho and that: (a) owns the copyright in an accredited production through-
 22    out the Idaho production period; or (b) has contracted directly with the  per-
 23    son  acting  on  behalf  of  the owner to provide services for the production,
 24    where the owner of the copyright is not an eligible production company.
 25        (6)  Any moneys awarded by the fund shall be awarded pursuant to a written
 26    agreement between the applicant and the department. The director shall  impose
 27    a  penalty upon a recipient for a violation of the agreement but may waive the
 28    penalty if the department determines that the violation  was  due  to  circum-
 29    stances  outside the control of the recipient. The amount of the penalty shall
 30    be equal to the full amount of the business  incentive  received  pursuant  to
 31    this section plus up to ten percent (10%) of the amount of the business incen-
 32    tive received. Penalties and interest may be added by the director. All moneys
 33    received shall be deposited in the fund.
 34        (7)  The  department shall evaluate the economic impact of the rebate pro-
 35    gram created pursuant to this section. The evaluation shall include an assess-
 36    ment of the effectiveness of the program in creating and retaining new jobs in
 37    Idaho and of the revenue impact of the program, and may include  a  review  of
 38    the  practices  and  experiences  of other states or nations with similar pro-
 39    grams. Upon completion of this evaluation, the department shall determine  the
 40    overall success of the program and may make a recommendation to extend, modify
 41    or  not extend the program based on this evaluation. The department shall sub-
 42    mit to the legislature during the 2010 regular legislative  session  a  report
 43    that includes the following information:
 44        (a)  The  economic  impact  of the rebate program, including the number of
 45        jobs created and retained, including whether the job positions  are  entry
 46        level, management, talent related, vendor related or production related;
 47        (b)  The amount of film production spending brought to Idaho including the
 48        amount  of  spending and type of Idaho vendors hired in connection with an
 49        accredited production;
 50        (c)  Identification of each vendor that provided goods  or  services  that
 51        were included in an accredited production's Idaho spending;
 52        (d)  The  amount  paid to each identified vendor by the accredited produc-
 53        tion; and
 54        (e)  For each identified vendor, a statement as to whether the vendor is a
 55        minority owned business or a female owned business  or  owned  by  someone
                                                                        
                                       3
                                                                        
  1        with a disability.
                                                                        
  2        SECTION  2. This act shall be null, void and of no force and effect on and
  3    after July 1, 2010.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                                                     Moved by    Cameron             
                                                                        
                                                     Seconded by Werk                
                                                                        
                                                                        
                                       IN THE SENATE
                             SENATE AMENDMENT TO S.B. NO. 1156
                                                                        
  1                                AMENDMENT TO THE BILL
  2        On page 1 of the printed bill, delete lines 11 through 43 and delete pages
  3    2 and 3 and insert:
  4        "SECTION 1.  That Chapter 47, Title 67, Idaho Code, be, and  the  same  is
  5    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
  6    ignated as Section 67-4727, Idaho Code, and to read as follows:
                                                                        
  7        67-4727.  FILM AND TELEVISION PRODUCTION BUSINESS REBATE FUND.  (1)  There
  8    is  hereby  created  in  the state treasury a fund to be known as the film and
  9    television production business rebate fund to  which  shall  be  credited  all
 10    moneys  that may be appropriated, apportioned, allocated and paid back to that
 11    fund. Moneys in this fund shall be used exclusively as provided in  this  sec-
 12    tion and may be  appropriated for such purposes as authorized by this section.
 13    Moneys in the fund shall be invested by the state treasurer in the same manner
 14    as  provided  under  section  67-1210,  Idaho Code, with respect to other idle
 15    moneys in the state treasury. Interest earned  on  the  investments  shall  be
 16    credited  to  the  fund.  The purpose of the fund is to stimulate new film and
 17    television production business expenditures in the state of Idaho.  Applicants
 18    may  apply for a rebate from the fund by filling out an application and satis-
 19    fying the department's criteria for a state certified production prior to com-
 20    mencing work on the production. The director of the department of commerce and
 21    labor may promulgate administrative rules in compliance with chapter 52, title
 22    67, Idaho Code, to implement the provisions of this section.
 23        (2)  The rebate from the fund is available for  qualified  productions  in
 24    Idaho.  As used in this section, a "qualified production" is a feature film, a
 25    television film, a commercial for a product or service, a documentary, a tele-
 26    vision pilot or each episode of a television series which is intended as  pro-
 27    gramming  for  a  national audience. A qualified production does not include a
 28    production featuring any of the following: news, current events,  weather  and
 29    market  reports,  public access programming, reality shows, infomercials, talk
 30    shows, game shows, sports shows and events, award shows or other gala  events;
 31    a  production  that solicits funds, a production containing any material of an
 32    indecent or obscene nature as provided in  chapter 41, title  18, Idaho  Code,
 33    or  a  production  primarily  for private, political, industrial, corporate or
 34    institutional purposes.
 35        As used in this section, "base investment" shall mean the  actual  invest-
 36    ment made and expended by a state certified production in Idaho as  production
 37    expenditures  incurred  in  Idaho  that are directly used in a state certified
 38    production or productions. The rebate shall be calculated as a  percentage  of
 39    the  total  base investment dollars certified per project. The rebate shall be
 40    earned by investors at the time expenditures  are  made  by  a  television  or
 41    motion  picture production company in a state certified production. As used in
 42    this section,  "applicant" means a person or entity that is a film  production
 43    business  that  is  operating  an accredited production and that: (a) owns the
                                                                        
                                       2
                                                                        
  1    copyright in an accredited production throughout the production period; or (b)
  2    has contracted directly with the person acting on behalf of the owner to  pro-
  3    vide  services  for the production, where the owner of the copyright is not an
  4    eligible production company.
  5        (3)  To qualify for the rebate from the fund, twenty percent (20%) of  the
  6    crew  working  in Idaho must be Idaho residents who possess a valid Idaho dri-
  7    ver's license or identification card. Production expenses  that  are  eligible
  8    for  rebate  include all production goods and services including, but not lim-
  9    ited to, wages and salaries, construction, operations,  editing,  photography,
 10    sound synchronization, lighting, makeup, wardrobe and accessories, the cost of
 11    rental  facilities and equipment, leasing of vehicles, costs of food and lodg-
 12    ing, digital or tape editing,  film  processing,  sound  mixing,  special  and
 13    visual  effects,  total  aggregate payroll or music, if performed, composed or
 14    recorded by a musician who is a resident of Idaho. Marketing  and  advertising
 15    costs  shall not be applied toward the rebate, nor can star salaries, producer
 16    and director salaries or script costs, nor can any indirect costs, any amounts
 17    that are later reimbursed, any costs related to the transfer of rebates or any
 18    amounts that are paid to persons or entities as a result of  their  participa-
 19    tion in profits from the production.
 20        (4)  The   total   incentive  shall  be  capped  at  one  million  dollars
 21    ($1,000,000). The total amount of any incentive granted pursuant to this  sec-
 22    tion  may  not exceed five hundred thousand dollars ($500,000) nor twenty per-
 23    cent (20%) of an individual qualified production's expenses.
 24        (5)  Any moneys awarded by the fund shall be awarded pursuant to a written
 25    agreement between the applicant and the department. The director shall  impose
 26    a  penalty upon a recipient for a violation of the agreement but may waive the
 27    penalty if the department determines that the violation  was  due  to  circum-
 28    stances  outside the control of the recipient. The amount of the penalty shall
 29    be equal to the full amount of the business  incentive  received  pursuant  to
 30    this section plus up to ten percent (10%) of the amount of the business incen-
 31    tive received. Penalties and interest may be added by the director. All moneys
 32    received shall be deposited in the fund.
 33        (6)  The  department shall evaluate the economic impact of the rebate pro-
 34    gram created pursuant to this section. The evaluation shall include an assess-
 35    ment of the effectiveness of the program in creating and retaining new jobs in
 36    Idaho and of the revenue impact of the program, and may include  a  review  of
 37    the  practices  and  experiences  of other states or nations with similar pro-
 38    grams. Upon completion of this evaluation, the department shall determine  the
 39    overall success of the program and may make a recommendation to extend, modify
 40    or  not extend the program based on this evaluation. The department shall sub-
 41    mit to the legislature during the 2010 regular legislative  session  a  report
 42    that includes the following information:
 43        (a)  The  economic  impact  of the rebate program, including the number of
 44        jobs created and retained, including whether the job positions  are  entry
 45        level, management, talent related, vendor related or production related;
 46        (b)  The amount of film production spending brought to Idaho including the
 47        amount  of  spending and type of Idaho vendors hired in connection with an
 48        accredited production;
 49        (c)  Identification of each vendor that provided goods  or  services  that
 50        were included in an accredited production's Idaho spending;
 51        (d)  The  amount  paid to each identified vendor by the accredited produc-
 52        tion; and
 53        (e)  For each identified vendor, a statement as to whether the vendor is a
 54        minority owned business or a female owned business  or  owned  by  someone
 55        with a disability.
                                                                        
                                       3
                                                                        
  1        SECTION 2.  This act shall be null, void and of no force and effect on and
  2    after  July 1, 2010, and any unused and unexpended funds in the Film and Tele-
  3    vision Production Business Rebate Fund on the sunset date shall revert to  the
  4    general fund.".
                                                                        
  5                                 CORRECTION TO TITLE
  6        On page 1, delete lines 2 through 9 and insert:
  7    "RELATING  TO  A FILM AND TELEVISION PRODUCTION BUSINESS REBATE FUND; AMENDING
  8        CHAPTER 47, TITLE 67, IDAHO  CODE,  BY  THE  ADDITION  OF  A  NEW  SECTION
  9        67-4727,  IDAHO CODE, TO CREATE IN THE STATE TREASURY THE FILM AND TELEVI-
 10        SION PRODUCTION BUSINESS REBATE FUND, TO  DEFINE  "QUALIFIED  PRODUCTION,"
 11        "BASE  INVESTMENT"  AND  "APPLICANT,"  TO  PROVIDE  QUALIFICATION  FOR THE
 12        REBATE, TO PROVIDE THE AMOUNT OF THE TOTAL INCENTIVE,  TO  PROVIDE  PROCE-
 13        DURES, TO PROVIDE FOR EVALUATION OF THE ECONOMIC IMPACT OF THE REBATE PRO-
 14        GRAM  AND  TO PROVIDE FOR A REPORT; AND PROVIDING A SUNSET DATE AND REMIT-
 15        TANCE OF FUNDS ON THE SUNSET DATE.".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                              SENATE BILL NO. 1156, As Amended
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO A FILM AND TELEVISION PRODUCTION BUSINESS  REBATE  FUND;  AMENDING
  3        CHAPTER  47,  TITLE  67,  IDAHO  CODE,  BY  THE  ADDITION OF A NEW SECTION
  4        67-4727, IDAHO CODE, TO CREATE IN THE STATE TREASURY THE FILM AND  TELEVI-
  5        SION  PRODUCTION  BUSINESS  REBATE FUND, TO DEFINE "QUALIFIED PRODUCTION,"
  6        "BASE INVESTMENT"  AND  "APPLICANT,"  TO  PROVIDE  QUALIFICATION  FOR  THE
  7        REBATE,  TO  PROVIDE  THE AMOUNT OF THE TOTAL INCENTIVE, TO PROVIDE PROCE-
  8        DURES, TO PROVIDE FOR EVALUATION OF THE ECONOMIC IMPACT OF THE REBATE PRO-
  9        GRAM AND TO PROVIDE FOR A REPORT; AND PROVIDING A SUNSET DATE  AND  REMIT-
 10        TANCE OF FUNDS ON THE SUNSET DATE.
                                                                        
 11    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 12        SECTION  1.  That  Chapter  47,  Title 67, Idaho Code, be, and the same is
 13    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 14    ignated as Section 67-4727, Idaho Code, and to read as follows:
                                                                        
 15        67-4727.  FILM  AND  TELEVISION PRODUCTION BUSINESS REBATE FUND. (1) There
 16    is hereby created in the state treasury a fund to be known  as  the  film  and
 17    television  production  business  rebate  fund  to which shall be credited all
 18    moneys that may be appropriated, apportioned, allocated and paid back to  that
 19    fund.  Moneys  in this fund shall be used exclusively as provided in this sec-
 20    tion and may be  appropriated for such purposes as authorized by this section.
 21    Moneys in the fund shall be invested by the state treasurer in the same manner
 22    as provided under section 67-1210, Idaho Code,  with  respect  to  other  idle
 23    moneys  in  the  state  treasury. Interest earned  on the investments shall be
 24    credited to the fund. The purpose of the fund is to  stimulate  new  film  and
 25    television  production business expenditures in the state of Idaho. Applicants
 26    may apply for a rebate from the fund by filling out an application and  satis-
 27    fying the department's criteria for a state certified production prior to com-
 28    mencing work on the production. The director of the department of commerce and
 29    labor may promulgate administrative rules in compliance with chapter 52, title
 30    67, Idaho Code, to implement the provisions of this section.
 31        (2)  The  rebate  from  the fund is available for qualified productions in
 32    Idaho. As used in this section, a "qualified production" is a feature film,  a
 33    television film, a commercial for a product or service, a documentary, a tele-
 34    vision  pilot or each episode of a television series which is intended as pro-
 35    gramming for a national audience. A qualified production does  not  include  a
 36    production  featuring  any of the following: news, current events, weather and
 37    market reports, public access programming, reality shows,  infomercials,  talk
 38    shows,  game shows, sports shows and events, award shows or other gala events;
 39    a production that solicits funds, a production containing any material  of  an
 40    indecent  or obscene nature as provided in  chapter 41, title  18, Idaho Code,
 41    or a production primarily for private,  political,  industrial,  corporate  or
 42    institutional purposes.
 43        As  used  in this section, "base investment" shall mean the actual invest-
                                                                        
                                       2
                                                                        
  1    ment made and expended by a state certified production in Idaho as  production
  2    expenditures incurred in Idaho that are directly used  in  a  state  certified
  3    production  or  productions. The rebate shall be calculated as a percentage of
  4    the total base investment dollars certified per project. The rebate  shall  be
  5    earned  by  investors  at  the  time  expenditures are made by a television or
  6    motion picture production company in a state certified production. As used  in
  7    this  section,  "applicant" means a person or entity that is a film production
  8    business that is operating an accredited production and  that:  (a)  owns  the
  9    copyright in an accredited production throughout the production period; or (b)
 10    has  contracted directly with the person acting on behalf of the owner to pro-
 11    vide services for the production, where the owner of the copyright is  not  an
 12    eligible production company.
 13        (3)  To  qualify for the rebate from the fund, twenty percent (20%) of the
 14    crew working in Idaho must be Idaho residents who possess a valid  Idaho  dri-
 15    ver's  license  or  identification card. Production expenses that are eligible
 16    for rebate include all production goods and services including, but  not  lim-
 17    ited  to,  wages and salaries, construction, operations, editing, photography,
 18    sound synchronization, lighting, makeup, wardrobe and accessories, the cost of
 19    rental facilities and equipment, leasing of vehicles, costs of food and  lodg-
 20    ing,  digital  or  tape  editing,  film  processing, sound mixing, special and
 21    visual effects, total aggregate payroll or music, if  performed,  composed  or
 22    recorded  by  a musician who is a resident of Idaho. Marketing and advertising
 23    costs shall not be applied toward the rebate, nor can star salaries,  producer
 24    and director salaries or script costs, nor can any indirect costs, any amounts
 25    that are later reimbursed, any costs related to the transfer of rebates or any
 26    amounts  that  are paid to persons or entities as a result of their participa-
 27    tion in profits from the production.
 28        (4)  The  total  incentive  shall  be  capped  at  one   million   dollars
 29    ($1,000,000).  The total amount of any incentive granted pursuant to this sec-
 30    tion may not exceed five hundred thousand dollars ($500,000) nor  twenty  per-
 31    cent (20%) of an individual qualified production's expenses.
 32        (5)  Any moneys awarded by the fund shall be awarded pursuant to a written
 33    agreement  between the applicant and the department. The director shall impose
 34    a penalty upon a recipient for a violation of the agreement but may waive  the
 35    penalty  if  the  department  determines that the violation was due to circum-
 36    stances outside the control of the recipient. The amount of the penalty  shall
 37    be  equal  to  the  full amount of the business incentive received pursuant to
 38    this section plus up to ten percent (10%) of the amount of the business incen-
 39    tive received. Penalties and interest may be added by the director. All moneys
 40    received shall be deposited in the fund.
 41        (6)  The department shall evaluate the economic impact of the rebate  pro-
 42    gram created pursuant to this section. The evaluation shall include an assess-
 43    ment of the effectiveness of the program in creating and retaining new jobs in
 44    Idaho  and  of  the revenue impact of the program, and may include a review of
 45    the practices and experiences of other states or  nations  with  similar  pro-
 46    grams.  Upon completion of this evaluation, the department shall determine the
 47    overall success of the program and may make a recommendation to extend, modify
 48    or not extend the program based on this evaluation. The department shall  sub-
 49    mit  to  the  legislature during the 2010 regular legislative session a report
 50    that includes the following information:
 51        (a)  The economic impact of the rebate program, including  the  number  of
 52        jobs  created  and retained, including whether the job positions are entry
 53        level, management, talent related, vendor related or production related;
 54        (b)  The amount of film production spending brought to Idaho including the
 55        amount of spending and type of Idaho vendors hired in connection  with  an
                                                                        
                                       3
                                                                        
  1        accredited production;
  2        (c)  Identification  of  each  vendor that provided goods or services that
  3        were included in an accredited production's Idaho spending;
  4        (d)  The amount paid to each identified vendor by the  accredited  produc-
  5        tion; and
  6        (e)  For each identified vendor, a statement as to whether the vendor is a
  7        minority  owned  business  or  a female owned business or owned by someone
  8        with a disability.
                                                                        
  9        SECTION 2.  This act shall be null, void and of no force and effect on and
 10    after July 1, 2010, and any unused and unexpended funds in the Film and  Tele-
 11    vision  Production Business Rebate Fund on the sunset date shall revert to the
 12    general fund.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE   
              
                             RS 16942

This legislation establishes an economic development stimulus
fund to grow the media production industry in Idaho and develop an
industry workforce by providing a rebate on specific Idaho
expenditures on qualified media production projects. Currently,
western states including Utah, Washington, Oregon and Montana, and
37 other states, as well as 19 provinces and countries are
benefitting from the influx of money generated by media production.
Idaho is seeking to compete and build an industry in a global
market. This legislation will sunset in 2010. Economic impact
reports will be completed for each production utilizing the rebate.


                           FISCAL NOTE

The economic development stimulus fund establishes a one-time
general fund appropriation of $1,000,000. The legislation would
provide a 20% rebate on specific Idaho expenditures for productions
intended for a national audience when the production hires Idahoans
for 20% of the crew. The maximum rebate is $500,000 per production.

The return on investment is projected to be a minimum of $5-
10 million before economic multipliers, and could be much higher
depending on the budget of the productions utilizing the rebate. 
The industry multiplier is considered to be between 1.7% and 3.6%,
which would result in economic impacts to Idaho between $8.5
million and $36 million. 
  



Contact: 
Sen. Robert Geddes, Senate Pro-Tempore, 332-1000
Sen. Clint Stennett, Senate Minority Leader, 332-1351
Tom Williamson, Co-chair, Film Industry Advisory Committee, 
208-890-7685
                                 

STATEMENT OF PURPOSE/FISCAL NOTE                        S 1156