BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1941| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 AB 1941 Page 2 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 AB 1941 Page 3 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 AB 1941 Page 4 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. AB 1941 Page 5 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 AB 1941 Page 6 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, AB 1941 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 **** END ****