Film industry financial incentive program.

2017
STATE OF WYOMING
17LSO-0123
ENGROSSED
2.1

SENATE FILE

NO.
SF0024

Film industry financial incentive program.

Sponsored by:
Joint Travel, Recreation, Wildlife & Cultural Resources Interim Committee

A BILL

for

AN ACT relating to economic development; creating the film industry financial incentive program; authorizing incentives for qualified film productions; authorizing investments in branded entertainment; authorizing matching funds for local film production opportunities; requiring rulemaking; providing for penalties; requiring reports; providing an appropriation; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 9
‑
12
‑
40
8 through 9
‑
12
‑
41
2

are

created
to read:

9
‑
12
‑
408
.

Film industry financial incentive program; creation; account.

(a)

There is created the film industry financial incentive program
to be administered by the Wyoming tourism board. The purpose of the program is
to
:

(i)

Encourage the use of th
e
state a
s a site for filming and providing production services for filmed entertainment
;

(ii)

Promote the state as a tourist destination through investments in branded entertainment
;
or

(iii)

M
atch funds
from
local lodging tax
es
to support local film production opportunities
.

(b)

There is created the film industry financial incentive program account.
The account shall consist of those funds appropriated to the account by the legislature and all contributions, grants, gifts, bequests and donations to the account.
Funds in the account
shall not revert and
are continuously appropriated to the board to be
used only for
the purposes
authorized
u
nder this
act
.

The board shall report the balance carried forward in the account
in the agency's biennial budget request submitted under W.S. 9
‑
3
‑
1013
.

9
‑
12
‑
409
.

Film industry financial incentive program; definitions.

(a)

As used in this
act
:

(i)

"Board" means the Wyoming tourism board;

(ii)

"Branded entertainment" means

opportunities for the board to
contract with, enter into an agreement or
partner with production companies, major brands
or
other projects with Wyoming related video content
;

(
i
i
i
)

"Filmed entertainment" means any motion picture, television production, commercial or music video to be sold or displayed in electronic medium or film motion pictures;

(iv)

"Local film production opportunities" means any motion picture, television production, commercial or music video or other entertainment medium that would benefit a local community and would likely encourage members of the public to visit the local community;

(
v
)

"Local lodging
tax
board" means
any city, town or joint powers board imposing a tax as authorized by W.S. 39
‑
15
‑
204(a)(ii);

(
v
i
)

"Production costs" means the total cost of producing filmed entertainment;

(
v
i
i
)

"Program" means the film industry financial incentive program created under this
act
;

(
v
i
i
i
)

"Qualified expenditures" mean expenditures for goods purchased or leased or services purchased, leased or employed from a vendor or supplier who is located and doing business in this state if the expenditure was made in this state and was made for a qualified production. Qualified expenditures for which reimbursement may be made are limited to:

(A)

Salaries and employment benefits for services rendered in and to residents of this state;

(B)

Rents for real and personal property located in this state
and
used in the production;

(C)

Payments for preproduction, production, post
‑
production and digital media effects services provided in this state;

(D)

Costs of set construction provided in this state.

(
i
x
)

"Qualified production" means filmed entertainment totally or partially produced and filmed in this state that would have widespread public appeal and would likely encourage members of the public to visit the state of Wyoming;

(
x
)

"This act" means W.S. 9
‑
12
‑
408 through 9
‑
12
‑
412
.

9
‑
12
‑
4
10
.

Film industry financial incentive program;
qualified production
reimbursement
s;
eligibility;
procedure;
contractual commitments.

(a)

To the extent
funding is available
, t
he board may contract with
any entity engaged in making a qualified production
in this state
for reimbursement of
up to fifteen percent (15%) of the production's qualified expenditures if
at least
two hundred thousand dollars ($200,000.00) in total qualified expenditures are made.

(b)

The board shall
by rule and regulation
establish a process by which a contract under this act is formulated and executed and reimbursement amounts are determined. The
rules and regulations
shall
include a process for determining
:

(i)

W
hether the production is a qualified production;

(ii)

The appropriate level of reimbursement for qual
ified expenditures and production costs,
including:

(
A
)

Production related employment;

(
B)

Proposed total production budgets;

(
C
)

Planned expenditures in this state which are intended for use exclusively as an integral part of preproduction, production or post
‑
production activities engaged in primarily in this state; and

(
D
)

A signed affidavit by a person authorized to commit the entity that the information provided to the board has been verified and is correct.

(
c
)

The board shall not contract with any qualified production for reimbursement of qualified expenditures under this
section
unless the board determines that adequate consideration to the state in exchange for the reimbursement will be provided under the contract. The reimbursement shall not exceed the amount of measurable benefit gained by the state resulting from the qualified production expenditures. The consideration may include:

(i)

Providing a storyline that is set in Wyoming;

(ii)

Providing additional Wyoming footage
, interviews and other marketing assets
;

(i
ii
)

Providing a clear statement in the credits that the product was filmed in Wyoming.

(
d
)

No reimbursement
of qualified expenditures shall be made by the board unless
th
e qualified production is complete and substantially all contractual commitments made to the board have been fulfilled
in accordance with board rule and regulation
. If a qualified production is not completed according to a reasonable schedule, the contract shall be terminated and funds reallocated
for
any
other purposes authorized under this act.

9
‑
12
‑
41
1
.

Film industry financial incentive program; branded entertainment
;
matching funds for
local
film
production
opportunities
.

(a)

To the extent funding is available, t
he board may
contract
,
enter into an agreement
or otherwise partner
with an entity
to
inves
t
in
branded entertainment
.
The board shall by rule and regulation establish a process by which a contract
, agreement or partnership
under this subsection is formulated and executed and investment amounts are determined.
The board shall not enter into any
contract,
agreement
or partnership
under this
sub
section unless the board determines that adequate consideration to the state in exchange for the investment will be provided.
The

investment

shall not exceed the amount of measurable benefit gained by the state resulting from the
investment in
branded entertainment. The consideration may include
the use of motion picture, television production, commercial or music video or other entertainment medium to raise the visibility of the Wyoming brand, in
creas
e
marketing reach, utiliz
e
partner distribution channels
or r
each target audiences.

(b)

To the extent funding is available, the board may contract
,
enter into an agreement
or otherwise partner
with a local
lodging tax board for purposes of matching funds for local
film
production opportunities.
The board shall
by rule and regulation establish a process by which a contract, agreement or partnership under this subsection is formulated and executed and matching fund
s
are determined. No matching funds shall be expended by the board unless
the board
determines the funds
would likely
benefit local communities
and
increas
e
awareness
and marketing reach for
local communities as a tourist
destination.

9
‑
12
‑
4
1
2
.

Film industry financial incentive program; reporting
; fraudulent claims.

(a)

The sum of all
contract
ual obligations
, investments and matching funds expended
under this act shall not exceed the total
amount
available for the program for any fiscal biennium.

(b
)

The board shall include within its biennial budget request submitted under W.S. 9
‑
2
‑
1013 a rep
ort on expenditures under this act
in each of the immediately preceding two (2) fiscal years. The report shall include the return to the state on funds expended pursuant to this
act
.

(c)

An entity that obtains
payment
under this act through a claim that is fraudulent is liable for reimbursement of the amount paid plus an amount double the payment plus reimbursement of reasonable costs. The amounts under this subsection are in addition to any criminal penalty for which the entity is liable for the same acts. The entity shall also be liable for costs and fees incurred by the state in investigating the fraudulent claim.

Section 2
.

W.S. 39
‑
15
‑
211(a)(ii)(B)(I) is amended to read:

39
‑
15
‑
211
.

Distribution.

(a)

For all revenue collected by the department from the taxes imposed under W.S. 39
‑
15
‑
204(a)(i), (ii), (v) and (vi) the department shall:

(ii)

For revenues collected under W.S. 39
‑
15
‑
204(a)(ii):

(B)

Except as provided in subparagraph (a)(ii)(C) of this section, distribute the balance on a monthly basis to the treasurer of each county, city or town imposing the tax in an amount equal to the amount collected in each entity less the costs of collection as provided by subparagraph (a)(ii)(A) of this section. Amounts distributed under this subparagraph shall be used for the following purposes:

(I)

Except as provided by subdivision (III) of this subparagraph, at least ninety percent (90%) of the amount distributed shall be used to promote travel and tourism within the county, city or town imposing the tax. Expenditures for travel and tourism promotion shall be limited to promotional materials, television and radio advertising, printed advertising, promotion of tours and other specific tourism related objectives

and for local film production opportunities
as defined in W.S. 9
‑
12
‑
409(a)(iv)
, provided that none of these funds shall be spent for capital construction or improvements
.

and not more than forty thousand dollars ($40,000.00) of these funds shall be spent for purposes of matching state general funds under the matching funds program administered by the
Wyoming business council.
If the amount is collected under a tax imposed countywide, expenditures of this amount shall be made in accordance with the Uniform Municipal Fiscal Procedures Act by a joint powers board established pursuant to law by the county and a majority of incorporated municipalities within the county. Membership of the board shall include at least one (1) representative appointed by each governmental entity made a party to the agreement and the majority of the board membership shall be comprised of representatives of the travel and tourism industry;

Section
3
.

W.S. 9
‑
12
‑
40
7

is repealed.

Section
4
.

Any unexpended monies
appropriated to the Wyoming tourism board by 2016 Wyoming Session Laws
,
Chapter 31, Section 2, Section 066, footnote 1

shall be deposited in the film industry financial incentive program account created by this act.

Section

5
.

This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

1
SF0024