2005 California Government Code Sections 15363.60-15363.65 CHAPTER 1.4. FILM CALIFORNIA FIRST

GOVERNMENT CODE
SECTION 15363.60-15363.65

15363.60.  This chapter shall be known and may be cited as the Film
California First Program.
15363.61.  (a) The Legislature finds and declares as follows:
   (1) The entertainment industry is one of California's leading
industries in terms of employment and tax revenue.
   (2) While film, television, and commercial production in
California has expanded over the years, other states and countries
actively compete for California production business.  It is generally
acknowledged that certain segments of the industry, mainly film and
television production, are especially hard hit in California.  The
Legislature finds that this is due to assertive efforts of other
states and countries, offering various incentives for filming outside
of California.  As a result of increased marketing efforts by other
states and countries, unemployment in certain film industry sectors
and a reduction of film business has occurred within California.
   (3) Recognizing the vital role the entertainment industry plays in
California's economy, legislation enacted in 1985 created the
California Film Commission within the Business, Transportation and
Housing Agency to facilitate, retain, and attract filming in
California.
   (4) In order to stop the decline of California film production, it
is necessary and appropriate to assist in the underwriting of actual
costs incurred by production companies to film in California and to
provide opportunities for production companies and other film
industry companies to lease property owned by the State of California
at below market rates.
   (5) Providing the funds designated under this program, and leasing
property owned by the State of California at below market rates is
in the public interest and serves a public purpose, and providing
incentives to production companies and other film industry companies
will promote the prosperity, health, safety, and welfare of the
citizens of the State of California.
   (b) It is the intent of the Legislature that, commencing with the
2002-03 fiscal year, funding for the program from the General Fund
shall not exceed the General Fund funding level for the prior fiscal
year.
15363.62.  For purposes of this chapter, the following meanings
shall apply:
   (a) "Agency" means the Business, Transportation and Housing
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.
   (5) Local property use fees.
   (6) Rental costs for equipment owned and operated 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.
15363.63.  (a) (1) Except as provided in paragraph (2), the
Business, Transportation and Housing 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 Business, Transportation and Housing Agency shall only
reimburse actual costs incurred and may not reimburse for duplicative
costs.
   (2) Notwithstanding paragraph (1), the Business, Transportation
and Housing Agency shall not reimburse costs at rates exceeding those
in effect as of January 1, 2002.
   (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 Business, Transportation and Housing 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 reimburse.
  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 Business, Transportation and Housing 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.
15363.64.  (a) The Film California First Fund is hereby established
in the State Treasury.
   (b) The following moneys shall be paid into the fund:
   (1) Any moneys appropriated and made available by the Legislature
for the purposes of this chapter.
   (2) Any other moneys that may be made available to the agency for
the purpose of this chapter from any other source, including the
return from investments of moneys by the Treasurer.
15363.65.  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.


Disclaimer: These codes may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.