Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 81 First Substitute (2020GS)

Sponsor

Sen. Thatcher, D.

Final action

Governor Signed 3/30/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• removes the cap on cash rebate incentives allowed for any one motion picture.

Every vote on this bill

Bill text

MOTION PICTURE INCENTIVES AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Daniel W. Thatcher
House Sponsor: 
Eric K. Hutchings
LONG TITLE
General Description:
This bill modifies provisions related to motion picture incentives.
Highlighted Provisions:
This bill:
▸ removes the cap on cash rebate incentives allowed for any one motion picture.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63N-8-104
, as renumbered and amended by Laws of Utah 2015, Chapter 283
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63N-8-104
 is amended to read:
63N-8-104.
Motion picture incentives -- Standards to qualify for an incentive --
Limitations -- Content of agreement between office and motion picture company or
digital media company.
(1) In addition to the requirements for receiving a motion picture incentive as set forth
in this part, the office, in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, shall make rules establishing:
(a) the standards that a motion picture company or digital media company must meet to
qualify for the motion picture incentive; and
(b) criteria for determining the amount of the incentive.
(2) The office shall ensure that those standards include the following:
(a) an incentive may only be issued for a [
state approved
] 
state-approved
 production by
a motion picture company or digital media company;
(b) financing has been obtained and 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 as opposed to existing economic activity.
(3) With respect to a digital media project, the office shall consider economic
modeling, including the costs and benefits of the digital media project to state and local
governments in determining the motion picture incentive amount.
(4) The office may also consider giving preference to a production that stimulates
economic activity in rural areas of the state or that has Utah content, such as recognizing that
the production was made in the state or uses Utah as Utah in the production.
(5) (a) The office, with advice from the board, may enter into an agreement with a
motion picture company or digital media company that meets the standards established under
this section and satisfies the other qualification requirements under this part.
(b) Subject to Subsection 
63N-8-103
(3), the office may commit or authorize a motion
picture incentive:
(i) to a motion picture company of up to 20% of the dollars left in the state by the
motion picture company, and a motion picture company can receive an additional 5%, not to
exceed 25% of the dollars left in the state by the motion picture company if the company
fulfills certain requirements determined by the office including:
(A) employing a significant percentage of cast and crew from Utah;
(B) highlighting the state of Utah and the Utah Film Commission in the motion picture
credits; or
(C) other promotion opportunities as agreed upon by the office and the motion picture
company; and
(ii) to a digital media company, if the incentive does not exceed 100% of the new state
revenue less the considerations under Subsection (3), but not to exceed 20% of the dollars left
in the state by the digital media company.
[
(c) A cash rebate incentive from the Motion Picture Incentive Restricted Account may
not exceed $500,000 per state approved production for a motion picture project.
]
[
(d)
] 
(c)
 The office may not give a cash rebate incentive from the Motion Picture
Incentive Restricted Account for a digital media project.
(6) The office shall ensure that the agreement entered into with a motion picture
company or digital media company under Subsection (5)(a):
(a) details the requirements that the motion picture company or digital media company
must meet to qualify for an incentive under this part;
(b) specifies:
(i) the nature of the incentive; and
(ii) the maximum amount of the motion picture incentive that the motion picture
company or digital media company may earn for a taxable year and over the life of the
production;
(c) establishes the length of time over which the motion picture company or digital
media company may claim the motion picture incentive;
(d) requires the motion picture company or digital media company to retain records
supporting its claim for a motion picture incentive for at least four years after the motion
picture company or digital media company claims the incentive under this part; and
(e) requires the motion picture company or digital media company to submit to audits
for verification of the claimed motion picture incentive.