BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1131|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
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|327-4478 | |
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THIRD READING
Bill No: SB 1131
Author: Calderon (D)
Amended: 4/27/10
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 7-1, 4/13/10
AYES: Wright, Calderon, Florez, Oropeza, Padilla, Price,
Yee
NOES: Denham
NO VOTE RECORDED: Harman, Negrete McLeod, Wyland
SENATE APPROPRIATIONS COMMITTEE : 7-2, 4/26/10
AYES: Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
NOES: Cox, Denham
NO VOTE RECORDED: Walters, Wyland
SUBJECT : Commercials: state funding prohibition
SOURCE : Author
DIGEST : This bill prohibits the state from expending any
state funds for the purpose of filming or producing
commercials or other filmed materials for commercial use
outside of California.
ANALYSIS : Under existing law, 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
CONTINUED
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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.
Comments
According to the author's office, 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 percent. 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), Chapter 17, Statutes of
2009-10, Third Extraordinary Session, 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 states that this bill 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
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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 and Related Legislation
SB 15XXX (Calderon) Chapter 17, Statutes of 2009, Third
Extraordinary Session, 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
eligible costs for which film production can receive
reimbursements under the Film California First Program
administered by the California Film Commission.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
Unknown.
SUPPORT : (Verified 4/27/10)
California Conference Board of the Amalgamated Transit
Union
California Conference of Machinists
California Teamsters Public Affairs Council
Engineers and Scientists of California, 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
TSM:nl 4/27/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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