BILL ANALYSIS
Bill No: SB
1131
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
SB 1131 Author: Calderon
As Introduced: February 18, 2010
Hearing Date: April 13, 2010
Consultant: Art Terzakis
SUBJECT
Filming Commercials: state funding prohibition
DESCRIPTION
SB 1131 prohibits the state from expending any state funds
for the purpose of filming or producing commercials or
other filmed materials outside of California.
EXISTING LAW
Under existing law (Government Code Section 11080),
whenever a state agency is required or authorized by law to
prepare and cause the publishing of any notice,
advertisement or publication in any newspaper or other
medium, that agency is required to properly prepare the
notice, advertisement, or publication and deliver it to the
Department of General Services in due time for publication.
Existing law provides for the California Film Commission
which offers free on-line permitting for all state property
including state parks and beaches, freeways, roads, and
government buildings. California has a network of over 50
Regional Film Offices across the state to provide localized
support, detailed location information and facilitate the
permit process. Existing law also provides various
incentives, including tax incentives, to specified entities
that undertake film production in California.
SB 1131 (Calderon) continued
Page 2
BACKGROUND
Purpose of SB 1131: The author's office notes that
California's motion picture industry is an essential source
of economic activity, tax revenue, jobs and tourism for the
state. Specifically, film, television and commercial
production activities contribute more than $40 billion to
California's economy and directly employ almost 250,000
workers.
Other states and countries are working to build up their
long-term infrastructure with stage construction and post
production facilities. For example, New Mexico, Louisiana,
Massachusetts, and Toronto are building large multi-studio
facilities. The author's office points out that between
2001 and 2006 the City of San Francisco witnessed a loss of
production spending totaling $123,403,000 and a loss of
$8,417,000 in state and local tax revenues. During this
time frame, San Francisco film production employment
dropped 43%. On the other hand, production dollars spent
in Louisiana grew from $3.5 million in 2002 to $400 million
in 2007.
The recently enacted California Production Tax Incentive
Program, SB 15XXX (Calderon) of 2009, specifically targets
productions that are most likely to leave the state due to
incentives being offered by other states and countries. The
author's office asserts that SB 1131 is an important next
step - "California has invested millions of dollars to
ensure that we make every effort to retain production
activity in California." The author's office emphasizes that
"to allow California tax dollars to be spent supporting
production companies that have moved a project out-of-state
is simply unacceptable - SB 1131 is intended to ensure that
California does not make this mistake."
PRIOR/RELATED LEGISLATION
SB 15XXX (Calderon) Chapter 17, Statutes of 2009. Among
other things, established a motion picture production tax
credit, as specified, to be administered by the California
Film Commission.
SB 1356 (Murray) Chapter 715, Statutes of 2002. Expanded
SB 1131 (Calderon) continued
Page 3
eligible costs for which film production can receive
reimbursements under the Film California First Program
administered by the California Film Commission.
SJR 28 (Murray) Resolution Chapter 80 of 2002. Urged
Congress to enact the Independent Film and Television
Production Incentive Act of 2001 which would grant tax
credits of 25% for certain wages in the production of films
and television programs in the U.S., and 35% of wages that
are paid in low income areas.
AB 484 (Kuehl) Chapter 699, Statutes of 2000. Established
the California First Program, administered by the
Technology, Trade and Commerce Agency, to assist production
companies by providing various incentives and assistance in
using state leased property.
SUPPORT: As of April 9, 2010:
CA Conference Board of the Amalgamated Transit Union
CA Conference of Machinists
California Teamsters Public Affairs Council
Engineers and Scientists of CA, IFPTE Local 20
International Longshore and Warehouse Union
Jockeys' Guild
Professional and Technical Engineers, IFPTE Local 21
UNITE-HERE
United Food & Commercial Workers Western States Council
OPPOSE: None on file as of April 9, 2010.
DUAL REFERRAL: Senate Appropriations Committee