BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       AB 1941|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                      CONSENT 


          Bill No:  AB 1941
          Author:   Lopez (D), et al.
          Amended:  6/6/16 in Senate
          Vote:     21 

           SENATE BUS., PROF. & ECON. DEV. COMMITTEE:  9-0, 6/13/16
           AYES:  Hill, Bates, Block, Gaines, Galgiani, Hernandez,  
            Jackson, Mendoza, Wieckowski

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  78-0, 5/12/16 (Consent) - See last page for  
            vote

           SUBJECT:   California Film Commission:  membership and duties


          SOURCE:    Groat Family Productions
          
          DIGEST:   This bill requires the Governor to appoint an  
          independent filmmaker and an independent commercial producer as  
          two of her or his appointees to the California Film Commission  
          (Commission).  This bill requires the Commission to post  
          information relating to independent film productions on its Web  
          site. 


          ANALYSIS:  


          Existing law:


          1)Establishes the Governor's Office of Business and Economic  
            Development (GO-Biz) to serve as the lead state entity for  








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            economic strategy and marketing of California on issues  
            relating to business development, private sector investment,  
            and economic growth.  (Government Code (GC) §§ 12096 -  
            12098.5)


          2)Establishes the Commission to encourage motion picture and  
            television filming in California and make recommendations to  
            the Legislature, the Governor, and GO-Biz to improve the  
            position of the state's motion picture industry in the  
            national and world markets.  (GC §§ 14998 - 14999.55)


          3)Requires Commission membership to conform to a number of  
            requirements including, but not limited to, the following:   
            (GC § 14998.2)


             a)   Commission shall consist of 26 members.  The Governor  
               shall appoint 


             13 members; the Senate Committee on Rules shall appoint four  
               members; the Speaker of the Assembly shall appoint four  
               members; and five members shall be ex-officio. 
             b)   Members of the Commission appointed by the Governor may  
               include representatives of state and local government,  
               motion picture development companies, employee and  
               professional organizations composed of persons employed in  
               the motion picture industry, and other appropriate members  
               of this or related industries.


             c)   Six of the 13 members appointed by the Governor shall be  
               as follows:


               i)     One shall be a person who is a member or employee of  
                 a union or guild of motion picture artists.


               ii)    One shall be a person who is a member or employee of  








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                 a union or guild representing motion picture craftsmen,  
                 technicians, or photographers.


               iii)   Two shall be from major motion picture studios.


               iv)    One shall be a member of the city council or a  
                 member of the county board of supervisors of a city or a  
                 county with a population of at least two million people.


               v)     One shall be a member of the city council or a  
                 member of the county board of supervisors of a city or a  
                 county with a population of less than two million people.


             d)   One of the members appointed by the Senate Committee on  
               Rules shall, and another one may, be a Senator.  One of the  
               members appointed by the Speaker of the Assembly shall, and  
               another one may, be a Member of the Assembly. 


             e)   The five ex-officio members shall include: the Director  
               of Transportation, the Director of Parks and Recreation,  
               the Commissioner of the California Highway Patrol, the  
               State Fire Marshal, and the Director of the Commission.  


             f)   All members of the Commission, except Legislators  
               appointed either by the Senate Committee on Rules or by the  
               Speaker of the Assembly, shall serve at the pleasure of the  
               appointing authority for a term of two years from the  
               effective date of the appointment.  Legislators appointed  
               by the Senate Committee on Rules or by the Speaker of the  
               Assembly shall be appointed for four year terms.  Whenever  
               a Legislator vacates an office, the appointing power shall  
               appoint another person for a new full term.


             g)   Of the Legislators appointed to the Commission, no more  
               than three Legislators from the same political party may be  








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               appointed to or serve on the Commission at the same time.


          This bill:


          1)Requires another appointment to the Commission by the Governor  
            to be an independent filmmaker, where an independent filmmaker  
            is a producer of a film that meets all of the following  
            criteria:


             a)   Has a running time of at least 75 minutes.


             b)   Is intended for commercial distribution to a motion  
               picture theater, directly to the home video market,  
               directly to television, or through the Internet. 


             c)   Is produced by a company that is not publicly traded and  
               publicly traded companies do not own, directly or  
               indirectly, more than 25 percent of the producing company. 


          2)Requires another appointment to the Commission by the Governor  
            to be an independent commercial producer or employee of a  
            trade association representing independent commercial  
            producers, where an independent commercial producer meets all  
            of the following criteria:


             a)   Is a producer who owns or is employed by a company that  
               is principally engaged in the physical or digital  
               production of advertising content for advertisers.


             b)   Has control over the selection of production location,  
               deployment, or management of the production equipment and  
               directly employs the production crew as the person that has  
               control over the hiring and firing of the crew for a  
               commercial production.








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             c)   The company shall not be wholly or partly owned or  
               operated by an advertising agency or an advertiser or be  
               publicly traded and shall not produce any production to  
               which the recordkeeping requirements of Section 2257 of  
               Title 18 of the United States Code apply. 


          3)Requires the Commission to create a navigational link on its  
            Web site labeled "Independent Films" that includes information  
            explaining the qualified motion picture tax credits available  
            to independent films, outlining the application process, and  
            highlighting that the Commission is required to allocate five  
            percent of the aggregate amount of credits to independent  
            films.


          Background


          According to the author, independent filmmakers have smaller  
          budgets and face many unique challenges during the film  
          production process including logistics of production, smaller  
          crew sizes, less recognizable talent, and longer timeframes to  
          complete production.  The greatest challenges, according to the  
          author, arise with funding and distribution of a project.  Due  
          to these challenges, the author writes, independent filmmakers  
          "bring with them a special set of learned skills and  
          experiences."  In 2012-2013, California produced 177 independent  
          films, which is the greatest number of any state.  New York  
          produced the next greatest number with 96 independent  
          productions.  The author argues, "At such a high number of  
          productions, we should ensure that the unique needs of  
          independent filmmakers are heard [?] so that California can  
          remain first in the United States in producing independent  
          films. [?]  Since more independent film productions are made  
          [each] year than large studio productions, it is critical that  
          an independent filmmaker be added to the [Commission]."


          An independent film is any motion picture produced with a  








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          majority of funds from sources other than the six major  
          Hollywood studios.  Independent films range from small  
          alternative films to big-budget features such as The Hunger  
          Games and Million Dollar Baby.  Since 1980, Independent Film &  
          Television Alliance (IFTA) members have produced and distributed  
          more than half of the films that have won the "Best Picture"  
          Academy Award including: Braveheart, No Country for Old Men, and  
          Slumdog Millionaire.  According to IFTA, the major Hollywood  
          studios are increasingly reducing the number of films they  
          produce in-house and are relying more on independents to deliver  
          completed pictures to feed their domestic distribution  
          pipelines.  The major studios have gradually become more  
          marketing and distribution specialists in the U.S. marketplace  
          than production entities.




          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified6/28/16)


          Groat Family Productions (source)


          OPPOSITION:   (Verified6/28/16)


          None received


          ASSEMBLY FLOOR:  78-0, 5/12/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Calderon,  
            Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper,  
            Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines,  
            Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,  
            Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger  
            Hernández, Holden, Irwin, Jones, Kim, Lackey, Levine, Linder,  








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                                                                    Page  7



            Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,  
            Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,  
            Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Williams, Wood, Rendon
          NO VOTE RECORDED:  Burke, Jones-Sawyer


          Prepared by:Nicole Billington / B., P. & E.D. / (916) 651-4104
          6/29/16 15:50:43


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