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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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007IN 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.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007Moved 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.".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007IN 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 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