Governor, Economic Development

Rule R357-5

Motion Picture Incentive Fund

Notice of Proposed Rule

(New Rule)

DAR File No.: 34381
Filed: 01/25/2011 06:58:42 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 63M-1-1804 requires a rule establishing the standards that a motion picture company must meet to qualify for the motion picture incentive fund.

Summary of the rule or change:

This new rule establishes standards that a motion picture company must meet to qualify for the motion picture incentive fund.

State statutory or constitutional authorization for this rule:

• Section 63M-1-1804

Anticipated cost or savings to:

the state budget:

This rule will not have any impact on cost or savings to the state. S.B. 14 from the 2009 General Session of the Utah Legislature states that enactment of this legislation could reduce the Education Fund by $7,793,700 in FY 2010 and FY 2011. Any future credits are dependent upon Legislative authorization. (DAR NOTE: S.B. 14 (2009) is found at Chapter 135, Laws of Utah 2009, and was effective 05/12/2009.)

local governments:

The Governor's Office of Economic Development (GOED) does not have jurisdiction over local governments. However, GOED does not anticipate any cost or savings to local governments.

small businesses:

This rule outlines the criteria a company must follow in order to receive a financial incentive. If a company fulfills all their requirements, then it will most likely result in cost savings for that particular company.

persons other than small businesses, businesses, or local governmental entities:

This rule should not have financial impact on persons other than those involved in the film business or state government.

Compliance costs for affected persons:

There will be no compliance costs associated with this rule.

Comments by the department head on the fiscal impact the rule may have on businesses:

The motions picture incentive fund helps the State of Utah attract motion pictures and television series to Utah, which will make significant positive impacts to Utah's economy. The five-year cumulative impact from 2005 - 2010 was $164,000,000 and created 4,474 jobs. That was the result of 51 total productions and 1,687 production days.

Spencer Eccles, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Governor
Economic Development
324 S State
5th Floor
SALT LAKE CITY, UT 84111

Direct questions regarding this rule to:

• Greg Hartley at the above address, by phone at 801-538-8743, by FAX at 801-538-8888, or by Internet E-mail at ghartley@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/17/2011

This rule may become effective on:

03/24/2011

Authorized by:

Spencer Eccles, Executive Director

R357. Governor, Economic Development.

R357-5. Motion Picture Incentive Fund.

R357-5-1. Authority.

(1) Subsection 63M-1-1804 requires the office to make rules establishing the standards that a motion picture company must meet to qualify for a motion picture incentive under Part 18 of the Utah Code Annotated.

 

R357-5-2. Definitions.

1) Terms in these rules are used as defined in UCA 63M-1-1802.

 

R357-5-3. Conditions.

(1) A motion picture company may qualify for a motion picture incentive under Part 18 only if:

(a) the motion picture company is producing a production within the state that is:

(i) a television series; or

(ii) a made-for-television movie; or

(iii) a motion picture, including feature films and independent films; and

(b) the motion picture company has obtained financing and financing is in place for the production; and

(c) the economic impact of the production on the state represents new incremental economic activity in the state.

(2) The office may give preference to a production that:

(a) stimulates economic activity in rural areas of the state; or

(b) has Utah content, such as recognizing that a production was made in the state or uses Utah as Utah in the production.

(3) The office, with advice from the board, may enter into an agreement with a motion picture company authorizing a motion picture incentive if the motion picture company meets the standards under subsection (1) and:

(a) the incentive does not exceed 20% of the dollars left in the state by the motion picture company; and

(b) a cash incentive does not exceed $500,000 per production.

(4) A motion picture company is eligible for a motion picture incentive only if the office has entered into an agreement under subsection (3) with the motion picture company.

 

KEY: economic development, motion picture

Date of Enactment or Last Substantive Amendment: 2011

Authorizing, and Implemented or Interpreted Law: 63M-1-1804