BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1778 (Lieu)
          
          Hearing Date:  8/2/2010         Amended: 5/13/2010
          Consultant:  Bob Franzoia       Policy Vote: G O 7-1
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          ____
          BILL SUMMARY: AB 1778 would require any department, commission,  
          office, agency, or other administrative entity of the state that  
          produces, or contracts for the production of, a promotional  
          commercial for the state or a product of the state, and finances  
          that commercial in whole or in   part with public funds, to film  
          that commercial in the state.  This bill would except from its  
          provisions agreements to feature or promote California products  
          in a program made by a private entity.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           Filmed material prohibition       Unknown, likely significant  
          costs                  General/                         Special
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          Information related to the amount of state funded filming or  
          commercial production outside of the state is scarce, at best.   
          What information there is appears to suggest the amount is small  
          though, as noted, undeterminable.  One example of filming or  
          commercial production outside of the state occurred when the  
          California Milk Advisory Board did production work for ten  
          commercials in New Zealand.  The board has indicated all the  
          post-production work, about 80 percent of the total work  
          involved, was completed in California.  Recently, the board  
          indicated it saved $750,000 by filming promotional materials  
          outside the state.

          Because filming or commercial production work may be bid on by  
          advertising agencies throughout the country, who may then  
          subcontract for the actual filming or commercial production, it  
          may be difficult to track funding and enforce the prohibition.   










          Additionally, "promotional commercial" could involve more than  
          one type of media and transmission.

          For any part of film or commercial production that was competed  
          outside of the state for $50,000 to $150,000 less than that  
          production could be completed in state, this bill would meet the  
          criteria for referral to the Suspense File.