Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 78 Second Substitute (2024GS)

Sponsor

Rep. Stenquist, J.

Final action

Became Law w/o Governor Signature 3/21/2024

Outcome

Became Law w/o Governor Signature

Summary

What it does

• This bill:
• repeals the sunset date that applies to certain motion picture incentives available only for rural productions;
• requires the Legislature to conduct a biennial review of the motion picture incentives available only for rural productions; and
• makes technical changes.

Every vote on this bill

Bill text

MOTION PICTURE INCENTIVES AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jeffrey D. Stenquist
Senate Sponsor: 
 Ronald M. Winterton
LONG TITLE
Committee Note:
The Economic Development and Workforce Services Interim Committee recommended
this bill.
Legislative Vote: 11 voting for 2 voting against 1 absent
General Description:
This bill addresses the Governor's Office of Economic Opportunity's issuance of motion
picture incentives.
Highlighted Provisions:
This bill:
▸ repeals the sunset date that applies to certain motion picture incentives available
only for rural productions;
▸ requires the Legislature to conduct a biennial review of the motion picture
incentives available only for rural productions; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63I-1-263
, as last amended by Laws of Utah 2023, Chapters 33, 47, 104, 109, 139, 155,
212, 218, 249, 270, 448, 489, and 534
63N-8-103
, as last amended by Laws of Utah 2023, Chapter 499
63N-8-105
, as last amended by Laws of Utah 2021, Chapter 282
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63I-1-263
 is amended to read:
63I-1-263.
Repeal dates: Titles 63A to 63N.
(1) Subsection 
63A-5b-405
(5), relating to prioritizing and allocating capital
improvement funding, is repealed July 1, 2024.
[
(2) Section 
63A-5b-1003
, State Facility Energy Efficiency Fund, is repealed July 1,
2023.
]
[
(3) Sections 
63A-9-301
 and 
63A-9-302
, related to the Motor Vehicle Review
Committee, are repealed July 1, 2023.
]
[
(4)
] 
(2)
 Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed
July 1, 2028.
[
(5)
] 
(3)
 Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1,
2025.
[
(6)
] 
(4)
 Title 63C, Chapter 12, Snake Valley Aquifer Advisory Council, is repealed
July 1, 2024.
[
(7) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
repealed July 1, 2023.
]
[
(8)
] 
(5)
 Title 63C, Chapter 18, Behavioral Health Crisis Response Commission, is
repealed December 31, 2026.
[
(9)
] 
(6)
 Title 63C, Chapter 23, Education and Mental Health Coordinating Council, is
repealed July 1, 2026.
[
(10)
] 
(7)
 Title 63C, Chapter 27, Cybersecurity Commission, is repealed July 1, 2032.
[
(11)
] 
(8)
 Title 63C, Chapter 28, Ethnic Studies Commission, is repealed July 1, 2026.
[
(12)
] 
(9)
 Title 63C, Chapter 29, Domestic Violence Data Task Force, is repealed
December 31, 2024.
[
(13)
] 
(10)
 Title 63C, Chapter 31, State Employee Benefits Advisory Commission, is
repealed on July 1, 2028.
[
(14)
] 
(11)
 Section 
63G-6a-805
, which creates the Purchasing from Persons with
Disabilities Advisory Board, is repealed July 1, 2026.
[
(15)
] 
(12)
 Title 63G, Chapter 21, Agreements to Provide State Services, is repealed
July 1, 2028.
[
(16)
] 
(13)
 Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed
July 1, 2024.
[
(17)
] 
(14)
 Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1,
2026.
[
(18)
] 
(15)
 Subsection 
63J-1-602.2
(25), related to the Utah Seismic Safety
Commission, is repealed January 1, 2025.
[
(19)
] 
(16)
 Section 
63L-11-204
, creating a canyon resource management plan to Provo
Canyon, is repealed July 1, 2025.
[
(20)
] 
(17)
 Title 63L, Chapter 11, Part 4, Resource Development Coordinating
Committee, is repealed July 1, 2027.
[
(21)
] 
(18)
 In relation to the Utah Substance Use and Mental Health Advisory Council,
on January 1, 2033:
(a) Sections 
63M-7-301
, 
63M-7-302
, 
63M-7-303
, 
63M-7-304
, and 
63M-7-306
 are
repealed;
(b) Section 
63M-7-305
, the language that states "council" is replaced with
"commission";
(c) Subsection 
63M-7-305
(1)(a) is repealed and replaced with:
"(1) "Commission" means the Commission on Criminal and Juvenile Justice."; and
(d) Subsection 
63M-7-305
(2) is repealed and replaced with:
"(2) The commission shall:
(a) provide ongoing oversight of the implementation, functions, and evaluation of the
Drug-Related Offenses Reform Act; and
(b) coordinate the implementation of Section 
77-18-104
 and related provisions in
Subsections 
77-18-103
(2)(c) and (d).".
[
(22)
] 
(19)
 The Crime Victim Reparations and Assistance Board, created in Section
63M-7-504
, is repealed July 1, 2027.
[
(23)
] 
(20)
 Title 63M, Chapter 7, Part 8, Sex Offense Management Board, is repealed
July 1, 2026.
[
(24)
] 
(21)
 Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1,
2026.
[
(25)
] 
(22)
 Title 63N, Chapter 1b, Part 4, Women in the Economy Subcommittee, is
repealed January 1, 2025.
[
(26)
] 
(23)
 Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
[
(27)
] 
(24)
 Section 
63N-2-512
, related to the Hotel Impact Mitigation Fund, is repealed
July 1, 2028.
[
(28)
] 
(25)
 Title 63N, Chapter 3, Part 9, Strategic Innovation Grant Pilot Program, is
repealed July 1, 2027.
[
(29)
] 
(26)
 Title 63N, Chapter 3, Part 11, Manufacturing Modernization Grant
Program, is repealed July 1, 2025.
[
(30)
] 
(27)
 In relation to the Rural Employment Expansion Program, on July 1, 2028:
(a) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed;
and
(b) Subsection 
63N-4-805
(5)(b), referring to the Rural Employment Expansion
Program, is repealed.
[
(31)
] 
(28)
 In relation to the Board of Tourism Development, on July 1, 2025:
(a) Subsection 
63N-2-511
(1)(b), which defines "tourism board," is repealed;
(b) Subsections 
63N-2-511
(3)(a) and (5), the language that states "tourism board" is
repealed and replaced with "Utah Office of Tourism";
(c) Subsection 
63N-7-101
(1), which defines "board," is repealed;
(d) Subsection 
63N-7-102
(3)(c), which requires the Utah Office of Tourism to receive
approval from the Board of Tourism Development, is repealed; and
(e) Title 63N, Chapter 7, Part 2, Board of Tourism Development, is repealed.
[
(32) Subsection 
63N-8-103
(3)(c), which allows the Governor's Office of Economic
Opportunity to issue an amount of tax credit certificates only for rural productions, is repealed
on July 1, 2024.
]
Section 2. Section 
63N-8-103
 is amended to read:
63N-8-103.
Motion Picture Incentive Account created -- Cash rebate incentives --
Refundable tax credit incentives.
(1) (a) There is created within the General Fund a restricted account known as the
Motion Picture Incentive Account, which the office shall use to provide cash rebate incentives
for state-approved productions by a motion picture company.
(b) All interest generated from investment of money in the restricted account shall be
deposited in the restricted account.
(c) The restricted account shall consist of an annual appropriation by the Legislature.
(d) The office shall:
(i) with the advice of the GO Utah board, administer the restricted account; and
(ii) make payments from the restricted account as required under this section.
(e) The cost of administering the restricted account shall be paid from money in the
restricted account.
(2) (a) A motion picture company or digital media company seeking disbursement of
an incentive allowed under an agreement with the office shall follow the procedures and
requirements of this Subsection (2).
(b) The motion picture company or digital media company shall provide the office with
an incentive request form, provided by the office, identifying and documenting the dollars left
in the state and new state revenues generated by the motion picture company or digital media
company for state-approved production, including any related tax returns by the motion picture
company, payroll company, digital media company, or loan-out corporation under Subsection
(2)(d).
(c) For a motion picture company, an independent certified public accountant shall:
(i) review the incentive request form submitted by the motion picture company; and
(ii) provide a report on the accuracy and validity of the incentive request form,
including the amount of dollars left in the state, in accordance with the agreed upon procedures
established by the office by rule.
(d) The motion picture company, digital media company, payroll company, or loan-out
corporation shall provide the office with a document that expressly directs and authorizes the
State Tax Commission to disclose the entity's tax returns and other information concerning the
entity that would otherwise be subject to confidentiality under Section 
59-1-403
 or Section
6103, Internal Revenue Code, to the office.
(e) The office shall submit the document described in Subsection (2)(d) to the State
Tax Commission.
(f) Upon receipt of the document described in Subsection (2)(d), the State Tax
Commission shall provide the office with the information requested by the office that the
motion picture company, digital media company, payroll company, or loan-out corporation
directed or authorized the State Tax Commission to provide to the office in the document
described in Subsection (2)(d).
(g) Subject to Subsection (3), for a motion picture company the office shall:
(i) review the incentive request form from the motion picture company described in
Subsection (2)(b) and verify that the incentive request form was reviewed by an independent
certified public accountant as described in Subsection (2)(c); and
(ii) based upon the independent certified public accountant's report under Subsection
(2)(c), determine the amount of the incentive that the motion picture company is entitled to
under the motion picture company's agreement with the office.
(h) Subject to Subsection (3), for a digital media company, the office shall:
(i) ensure the digital media project results in new state revenues; and
(ii) based upon review of new state revenues, determine the amount of the incentive
that a digital media company is entitled to under the digital media company's agreement with
the office.
(i) Subject to Subsection (3), if the incentive is in the form of a cash rebate, the office
shall pay the incentive from the restricted account to the motion picture company,
notwithstanding Subsections 
51-5-3
(23)(b) and 
63J-1-105
(6).
(j) If the incentive is in the form of a refundable tax credit under Section 
59-7-614.5
 or
59-10-1108
, the office shall:
(i) issue a tax credit certificate to the motion picture company or digital media
company; and
(ii) provide a digital record of the tax credit certificate to the State Tax Commission.
(k) A motion picture company or digital media company may not claim a motion
picture tax credit under Section 
59-7-614.5
 or 
59-10-1108
 unless the motion picture company
or digital media company has received a tax credit certificate for the claim issued by the office
under Subsection (2)(j)(i).
(l) A motion picture company or digital media company may claim a motion picture
tax credit on the motion picture company's or the digital media company's tax return for the
amount listed on the tax credit certificate issued by the office.
(m) A motion picture company or digital media company that claims a tax credit under
Subsection (2)(l) shall retain the tax credit certificate and all supporting documentation in
accordance with Subsection 
63N-8-104
(6).
(3) (a) Subject to this Subsection (3), the office may issue $6,793,700 in tax credit
certificates under this part in each fiscal year.
(b) For the fiscal year ending June 30, 2022, the office may issue $8,393,700 in tax
credit certificates under this part.
(c) [
For fiscal years 2023 and 2024, in
] 
In
 addition to the amount of tax credit
certificates authorized under Subsection (3)(a), the office may
, in each fiscal year that begins
on or after July 1, 2022,
 issue $12,000,000 in tax credit certificates under this part only for
rural productions.
(d) If the office does not issue tax credit certificates in a fiscal year totaling the amount
authorized under this Subsection (3), the office may carry over that amount for issuance in
subsequent fiscal years.
Section 3. Section 
63N-8-105
 is amended to read:
63N-8-105.
Annual report -- Review by interim committee.
(1)
 The office shall include the following information in the annual written report
described in Section 
63N-1a-306
:
[
(1)
] 
(a)
 the office's success in attracting within-the-state production of television
series, made-for-television movies, and motion pictures, including feature films and
independent films;
[
(2)
] 
(b)
 the amount of incentive commitments made by the office under this part and
the period of time over which the incentives will be paid; [
and
]
[
(3)
] 
(c)
 the economic impact on the state related to:
[
(a)
] 
(i)
 dollars left in the state; and
[
(b)
] 
(ii)
 providing motion picture incentives under this part[
.
]
; and
(d) any recommendations for legislative changes to the motion picture incentives
available only for rural productions under Subsection 
63N-8-103
(3)(c).
(2) (a) Beginning in 2025, and every two years thereafter, the Economic Development
and Workforce Services Interim Committee shall conduct a review of the motion picture
incentives available only for rural productions under Subsection 
63N-8-103
(3)(c).
(b) In a review under this Subsection (2), the Economic Development and Workforce
Services Interim Committee shall:
(i) study any recommendations provided by the office under Subsection (1)(d); and
(ii) if the Economic Development and Workforce Services Interim Committee decides
to recommend legislative action to the Legislature, prepare legislation for consideration by the
Legislature in the next general session.
Section 4. 
Effective date.
This bill takes effect on May 1, 2024.