BILL NUMBER: AB 484 CHAPTERED 09/27/00 CHAPTER 699 FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2000 APPROVED BY GOVERNOR SEPTEMBER 25, 2000 PASSED THE ASSEMBLY AUGUST 31, 2000 PASSED THE SENATE AUGUST 30, 2000 AMENDED IN SENATE AUGUST 29, 2000 AMENDED IN SENATE AUGUST 25, 2000 AMENDED IN SENATE AUGUST 7, 2000 AMENDED IN SENATE JUNE 21, 2000 AMENDED IN SENATE JUNE 13, 2000 AMENDED IN SENATE JULY 14, 1999 AMENDED IN ASSEMBLY MAY 28, 1999 AMENDED IN ASSEMBLY MAY 10, 1999 AMENDED IN ASSEMBLY APRIL 5, 1999 INTRODUCED BY Assembly Members Kuehl and Wildman (Coauthors: Assembly Members Bates, Battin, Briggs, Calderon, Campbell, Knox, Leach, Nakano, Romero, and Scott) (Coauthors: Senators Alarcon, Schiff, and Solis) FEBRUARY 18, 1999 An act to amend Sections 15363.72 and 15363.75 of, and to repeal and add Section 15363.73 of, the Government Code, relating to economic development. LEGISLATIVE COUNSEL'S DIGEST AB 484, Kuehl. Film California First Program. (1) Existing law establishes the Film California First Program, which authorizes the Trade and Commerce Agency to pay and reimburse the film costs, as defined, incurred by a public agency, as defined, according to specified procedures. Procedures and guidelines promulgated to clarify and make specific provisions of the program, or of any other film assistance program within the agency, are exempt from specified requirements of the Administrative Procedure Act for a specified period, and the agency is authorized to adopt emergency regulations for these purposes after that period. This bill would revise the definitions of the terms "film costs" and "public agency" for purposes of the program, and would revise the procedures for state payment and reimbursement of those costs. It would provide that the exemption from specified provisions of the Administrative Procedure Act, and the authorization to adopt emergency regulations, shall apply instead to the procedures and guidelines promulgated by the California Film Commission within the agency, with respect to the act or to any other film assistance program within the commission. (2) Existing law requires the California Film Commission to prepare an annual status report of the Film California First Program, to include specified information. This bill would require instead that the commission prepare annual preliminary reports, to include specified information, to be submitted to the Joint Legislative Budget Committee, prior to the adoption of the annual Budget Act, and submit a final report to the committee no later than January 1, 2004. It would require the commission, in consultation with specified state agencies, to contract with an independent audit firm or qualified academic expert to prepare a report to be submitted to the committee no later than January 1, 2004. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 15363.72 of the Government Code is amended to read: 15363.72. For purposes of this chapter, the following meanings shall apply: (a) "Agency" means the Trade and Commerce Agency, which includes the California Film Commission. (b) "Film" means any commercial production for motion picture, television, commercial, or still photography. (c) "Film costs" means the usual and customary charges by a public agency connected with the production of a film, limited to any of the following: (1) State employee costs. (2) Federal employee costs. (3) Federal, state, University of California, and California State University permits and rental costs. (4) Local public entity employee costs for fire services and nonpolice public safety, including, but not limited to, municipal utilities, transportation and street maintenance, and recreational agencies. (5) Local property use fees. (6) Rental costs for equipment mandated and owned by a public agency in connection with the film. (d) "Fund" means the Film California First Fund, established pursuant to Section 15363.74. (e) "Production company" means a company, partnership, or corporation, engaged in the production of film. (f) "Program" means the Film California First Program established pursuant to this chapter. (g) "Public agency" means any of the following: (1) The State of California, and any of its agencies, departments, boards, or commissions. (2) The federal government, and any of its agencies, departments, boards, or commissions. (3) The University of California. (4) The California State University. (5) California local public entities. (6) Any nonprofit corporation acting as an agent for the recovery of costs incurred by any of the entities listed in this subdivision. SEC. 2. Section 15363.73 of the Government Code is repealed. SEC. 3. Section 15363.73 is added to the Government Code, to read: 15363.73. (a) The Trade and Commerce Agency may pay and reimburse the film costs incurred by a public agency, subject to an audit. The director of the commission shall develop alternate procedures for the reimbursement of public agency costs incurred by the production company. The Trade and Commerce Agency shall only reimburse actual costs incurred and may not reimburse for duplicative costs. (b) Notwithstanding any other provision of law, the Controller shall pay any program invoice received from the agency that contains documentation detailing the film costs, and if the party requesting payment or reimbursement is a public agency, a certification that the invoice is not duplicative cost recovery, and an agreement by the public agency that the Trade and Commerce Agency may audit the public agency for invoice compliance with the program requirements. (c) (1) Not more than three hundred thousand dollars ($300,000) shall be expended to pay or reimburse costs incurred on any one film. (2) In developing the procedures and guidelines for the program, the commission may, in consultation with interested public agencies, establish limits on per-day film costs that the state will reimbugrse. A consultation and comment period shall begin on January 1, 2001, and shall end 30 days thereafter. (d) (1) Upon receipt of all necessary film costs documentation from a public agency, the Trade and Commerce Agency shall transmit the appropriate information to the Controller for payment of the film costs within 30 days. (2) Public agencies shall be entitled to reimbursement for certain administrative costs, to be determined by the director of the commission, incurred while participating in the program. The reimbursement for administrative costs shall not exceed 1 percent of the total amount of the invoices submitted. Reimbursement shall have an annual cap imposed of not more than ten thousand dollars ($10,000) per public agency participating in the program. Contracted agents working on behalf of two or more public agencies shall have a cap of not more than twenty thousand dollars ($20,000) annually. (e) The commission shall prepare annual preliminary reports to be submitted to the Joint Legislative Budget Committee in regard to the program prior to the adoption of the annual Budget Act. The reports shall include a list of all entities that received funds from the program, the amounts they received, and the public services that were reimbursed. The commission shall prepare and submit a final report to the committee no later than January 1, 2004. (f) The commission shall, in consultation with the Department of Industrial Relations and the Employment Development Department, contract with an independent audit firm or qualified academic expert, to prepare a report to be submitted to the Joint Legislative Budget Committee no later than January 1, 2004, that identifies the beneficiaries of expenditures from the Film California First Fund, and determines the impact of these expenditures on job retention and job creation in California. SEC. 4. Section 15363.75 of the Government Code is amended to read: 15363.75. Procedures and guidelines promulgated to clarify and make specific provisions of the program established pursuant to this chapter, or of any other film assistance program within the agency, shall be exempt from the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 for a period of 36 months after the effective date of this chapter. Following the 36-month exemption, the commission may adopt regulations concerning the implementation of this chapter as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1. The adoption of these regulations is an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare within the meaning of subdivision (b) of Section 11346.1. Notwithstanding subdivision (e) of Section 11346.1, the regulations shall not remain in effect for more than 180 days unless the commission complies with all provisions of Chapter 3.5 (commencing with Section 11340) of Part 1, as required by subdivision (e) of Section 11346.1.