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H0592......................................................by STATE AFFAIRS
FILM AND TELEVISION PRODUCTION BUSINESS REBATE FUND - Adds to existing law
to provide for the Film and Television Production Business Rebate Fund; to
provide the purpose; to define terms; to provide for the investment of idle
moneys in the fund; to provide for rebate applications; to provide for
rules; to provide for requirements for certified productions; to establish
a maximum rebate; to provide for written agreement for rebates awarded; and
to provide for an economic impact evaluation by the Department of Commerce.
03/03 House intro - 1st rdg - to printing
03/04 Rpt prt - to Com/HuRes
03/06 Rpt out - rec d/p - to 2nd rdg
03/07 2nd rdg - to 3rd rdg
03/10 3rd rdg - PASSED - 51-17-2
AYES -- Anderson, Andrus, Bayer, Bell, Bilbao, Black, Block, Bock,
Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez, Chew,
Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Henbest, Henderson,
Jaquet, Killen, King, Kren, LeFavour, Moyle, Nonini, Pasley-Stuart,
Patrick, Pence, Raybould, Ringo, Ruchti, Rusche, Sayler, Schaefer,
Shepherd(02), Shepherd(08), Shirley, Shively, Smith(30), Snodgrass,
Stevenson, Thomas, Trail, Wills, Wood(35)
NAYS -- Barrett, Clark, Harwood, Lake, Loertscher, Luker, Marriott,
Mathews, McGeachin, Mortimer, Nielsen, Roberts, Smith(24), Thayn,
Vander Woude, Wood(27), Mr. Speaker
Absent and excused -- Bedke, Labrador
Floor Sponsor - Anderson
Title apvd - to Senate
03/11 Senate intro - 1st rdg - to St Aff
03/17 Rpt out - ref'd to Com/HuRes
03/24 Rpt out - rec d/p - to 2nd rdg
03/25 2nd rdg - to 3rd rdg
Rls susp - PASSED - 27-8-0
AYES -- Andreason, Bastian, Bilyeu, Broadsword, Burkett, Cameron,
Coiner, Corder, Darrington, Davis, Fulcher, Geddes, Goedde, Hammond,
Heinrich, Jorgenson, Kelly, Keough, Langhorst, Lodge,
Malepeai(Sagness), McGee, McKague, Richardson, Siddoway, Stennett,
Werk
NAYS -- Bair, Gannon(Gannon), Hill, Little, McKenzie, Pearce,
Schroeder, Stegner
Absent and excused -- None
Floor Sponsor - Broadsword
Title apvd - to House
03/26 To enrol - Rpt enrol - Sp signed
03/27 Pres signed
03/28 To Governor
04/01 Governor signed
Session Law Chapter 350
Effective: 07/01/08;
07/01/14 Sunset Clause
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 592 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO THE FILM AND TELEVISION PRODUCTION BUSINESS REBATE FUND; AMENDING 3 CHAPTER 47, TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 4 67-4728, IDAHO CODE, TO PROVIDE FOR THE FILM AND TELEVISION PRODUCTION 5 BUSINESS REBATE FUND AND TO PROVIDE A PURPOSE FOR THE FUND, TO DEFINE 6 TERMS, TO PROVIDE FOR INVESTMENT OF IDLE MONEYS IN THE FUND AND TO PROVIDE 7 FOR RETURN TO THE FUND OF INTEREST EARNED, TO PROVIDE FOR REBATE APPLICA- 8 TIONS, TO AUTHORIZE THE DIRECTOR OF THE DEPARTMENT OF COMMERCE TO PROMUL- 9 GATE RULES, TO PROVIDE FOR EMPLOYMENT REQUIREMENTS FOR CERTIFIED PRODUC- 10 TIONS, TO ESTABLISH A MAXIMUM REBATE, TO PROVIDE FOR WRITTEN AGREEMENT FOR 11 REBATES AWARDED AND TO PROVIDE FOR AN ECONOMIC IMPACT EVALUATION BY THE 12 DEPARTMENT OF COMMERCE; TO PROVIDE A SUNSET DATE AND TO DIRECT THE STATE 13 CONTROLLER TO TRANSFER ANY UNEXPENDED OR UNOBLIGATED MONEYS IN THE FUND TO 14 THE GENERAL FUND UPON SUNSET. 15 Be It Enacted by the Legislature of the State of Idaho: 16 SECTION 1. That Chapter 47, Title 67, Idaho Code, be, and the same is 17 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 18 ignated as Section 67-4728, Idaho Code, and to read as follows: 19 67-4728. FILM AND TELEVISION PRODUCTION BUSINESS REBATE FUND. (1) There 20 is hereby created in the state treasury the film and television production 21 business rebate fund to which shall be credited all moneys that may be appro- 22 priated, apportioned, allocated, paid back to the fund, or otherwise provided 23 by law. The purpose of the fund is to stimulate new film and television pro- 24 duction business expenditures in the state of Idaho. Moneys in the fund shall 25 be used exclusively as provided for in this section. 26 (2) As used in this section: 27 (a) "Applicant" means a taxpayer that is a film or television production 28 business that is operating a qualified production and that: 29 (i) Owns the copyrights in a qualified production throughout the 30 Idaho production period; or 31 (ii) Has contracted directly with the person acting on behalf of the 32 copyright owner to provide services for the production where the 33 copyright owner is not an eligible production company. 34 (b) "Base investment" means the investment made and expended by a certi- 35 fied production in Idaho as production expenditures incurred in Idaho that 36 are directly used in a certified production or productions. 37 (c) "Certified production" means a qualified production selected by the 38 department for a rebate from the fund. 39 (d) "Department" means the Idaho department of commerce. 40 (e) "Director" means the director of the Idaho department of commerce. 41 (f) "Fund" means the film and television production business rebate fund. 42 (g) "Production expenses" means those expenses eligible for a rebate from 43 the fund and includes expenses for all production goods and services 2 1 including wages and salaries, construction, operations, editing, photogra- 2 phy, sound synchronization, lighting, makeup, wardrobe and accessories, 3 rental facilities and equipment, leasing of vehicles, food and lodging, 4 digital or tape editing, film processing, sound mixing, special and visual 5 effects, and music, if performed, composed or recorded by a musician who 6 is a resident of Idaho and other reasonable in-state expenditures as 7 defined in departmental rule. Production expenses do not include marketing 8 and advertising costs, star salaries, producer and director salaries, 9 script costs, any indirect costs, any amounts that are later reimbursed, 10 any costs related to the transfer or rebates awarded under this section or 11 any amounts that are paid to persons or entities as a result of their par- 12 ticipation in profits from the production. 13 (h) "Qualified production" means a feature film, a television film, a 14 commercial for a product or service, a documentary, a television pilot or 15 each episode of a television series that spends a minimum of two hundred 16 thousand dollars ($200,000) on Idaho goods and services. A qualified pro- 17 duction does not include a production featuring any of the following: 18 news, current events, weather and market reports, public access television 19 programming, infomercials, talk shows, game shows, sports shows or events, 20 award shows or other gala events, a production that solicits funds, a pro- 21 duction containing obscene material or a production primarily for private, 22 political, industrial, corporate or institutional purposes. 23 (3) Moneys in the fund shall be invested by the state treasurer in the 24 same manner as provided under section 67-1210, Idaho Code, with respect to 25 other surplus or idle moneys in the state treasury. Interest earned on the 26 investments shall be credited to the fund. 27 (4) Applicants may apply for a rebate from the fund by filling out an 28 application and satisfying the department's criteria for a certified produc- 29 tion prior to commencing work on the production. The rebate shall be calcu- 30 lated as a percentage of total base investment dollars certified by the 31 department per project. The rebate shall be earned at the time expenditures 32 are made by a film or television or commercial production business in a certi- 33 fied production. 34 (5) The director of the department may promulgate administrative rules in 35 compliance with chapter 52, title 67, Idaho Code, to implement the provisions 36 of this section. 37 (6) The following is required for all certified productions: Beginning on 38 and after July 1, 2008, and ending June 30, 2010, certified productions shall 39 ensure to the department that twenty percent (20%) of the crew working in 40 Idaho on a certified production are Idaho residents as verified by a state 41 certified driver's license or identification card. Beginning on and after July 42 1, 2010, and ending on June 30, 2011, certified productions shall ensure to 43 the department that twenty-five percent (25%) of the crew working in Idaho on 44 a certified production are Idaho residents as verified by a state certified 45 driver's license or identification card. Beginning on and after July 1, 2011, 46 and ending on June 30, 2012, certified productions shall ensure to the depart- 47 ment that thirty percent (30%) of the crew working in Idaho on a certified 48 production are Idaho residents as verified by a state certified driver's 49 license or identification card. Beginning on and after July 1, 2012, and end- 50 ing on June 30, 2013, certified productions shall ensure to the department 51 that thirty-five percent (35%) of the crew working in Idaho on a certified 52 production are Idaho residents as verified by a state certified driver's 53 license or identification card. 54 (7) The total amount of any rebate granted pursuant to this section may 55 not exceed five hundred thousand dollars ($500,000) nor twenty percent (20%) 3 1 of a qualified production's expenses. 2 (8) Any rebate awarded from the fund shall be awarded pursuant to a writ- 3 ten agreement between the applicant and the department. 4 (9) The department shall evaluate the economic impact of rebates awarded 5 from the fund. The evaluation shall include an assessment of the effectiveness 6 of the program in creating and retaining new jobs in Idaho and of the revenue 7 impact of the fund, and may include a review of the practices and experiences 8 of other states or nations with similar programs. Upon completion of this 9 evaluation, the department shall determine the overall success of the fund and 10 may make a recommendation to extend, modify or not extend the fund based on 11 this evaluation. The department shall submit to the legislature during the 12 2014 regular legislative session a report that includes the following informa- 13 tion: 14 (a) The economic impact of the rebate fund, including the number of jobs 15 created and retained, including whether the job positions are entry level, 16 management, talent related, vendor related or production related; 17 (b) The amount of film production spending brought to Idaho, including 18 the amount of spending and type of Idaho vendors hired in connection with 19 a certified production; 20 (c) Identification of each vendor that provided goods or services that 21 were included in a certified production's Idaho spending; and 22 (d) The amount paid to each identified vendor by the certified produc- 23 tion. 24 SECTION 2. The provisions of this act shall be null, void and of no force 25 and effect on and after July 1, 2014. On July 1, 2014, or as soon thereafter 26 as is practicable, the State Controller is hereby directed to transfer any 27 unexpended or unobligated moneys remaining in the fund to the General Fund.
STATEMENT OF PURPOSE
RS 17975C1
This legislation establishes a program to grow the media
production industry in Idaho. The Dept. of Commerce would
utilize the program as an economic stimulus and to develop a
media industry workforce by providing a cash rebate on specific
Idaho expenditures on qualified media production projects.
Currently, 45 states including western states Utah, Washington,
Oregon, Wyoming and Montana, as well as 19 provinces and
countries around the world are benefitting from similar film
incentive programs that attract media production expenditures.
Idaho is seeking to compete and build an industry in a global
market. This legislation will sunset in 2014. Economic impact
reports will be completed upon sunset of the program.
FISCAL NOTE
The program would provide a 20% rebate on specific Idaho
expenditures if at least $200,000 is spent in Idaho and when the
production hires Idaho crew members. In any production
qualifying under the program, 20% of the crew hired must be
Idahoans, increasing to %35 of the total crew over five years.
The maximum rebate per production is $500,000.
At least $5 would have to be spent in Idaho before $1 is rebated
to the production.
Depending on the size of the budget for the productions utilizing
the rebate, $10 to $12 could be spent in Idaho for every $1
rebated from the program. The film and television industry
economic multiplier is considered to be between 1.5 and 2.8
times, due to the expectation that motion media production
spending traditionally impacts a wide array of local businesses
and services.
CONTACT:
Rep. Eric Anderson
(208) 610-1718
Senator Robert Geddes
Senator Clint Stennett
Senator David Langhorst
(208) 332-1000
Kathleen Haase, Dept. of Commerce
(208) 334-2470 x2176
STATEMENT OF PURPOSE/FISCAL NOTE H 592
REVISED REVISED REVISED REVISED REVISED