74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 2627
 
                           A-Engrossed
 
                         Senate Bill 635
                  Ordered by the Senate June 21
            Including Senate Amendments dated June 21
 
Sponsored by COMMITTEE ON FINANCE AND REVENUE (at the request of
  Governor Theodore R. Kulongoski)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
    { - Increases - }   { + Modifies + } maximum reimbursement
from Oregon Production Investment Fund for film or television
production.
  { - Increases maximum tax credits for certified film production
development contributions to Oregon Production Investment
Fund. - } Applies to films starting principal photography on or
after January 1, 2007.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to the Oregon Production Investment Fund; creating new
  provisions; amending ORS 284.368; and prescribing an effective
  date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 284.368 is amended to read:
  284.368. (1) As used in this section:
  (a) 'Actual expenses' means the costs paid in Oregon for
principal photography, production or postproduction in Oregon of
a film, including but not limited to the purchase or rental cost
of equipment, food, lodging, real property and permits and
payments made for salaries, wages and benefits for work in
Oregon.
  (b) 'Film' means a television movie or one or more episodes of
a single television series, or a movie produced for release to
theaters, video or the Internet. 'Film' does not include the
production of a commercial or one or more segments of a newscast
or sporting event.
  (2)(a) The Economic and Community Development Department may
reimburse a bona fide television or film production company for a
portion of the actual expenses paid in Oregon by the television
or film production company to produce a film.
    { - (b) Maximum reimbursement for a single film, other than a
television series, shall be 10 percent of actual expenses paid or
$250,000, whichever is less. Maximum reimbursement for one or
more episodes of a television series shall be 10 percent of
actual expenses paid or $30,000 per episode produced in Oregon,
whichever is less. - }
   { +  (b) Maximum reimbursement for a single film or television
series shall be the total of:
  (A) 10 percent of payments made for employee salaries, wages
and benefits for work done in Oregon; and
  (B) 20 percent of all other actual expenses paid in Oregon. + }
  (c) In order to qualify for reimbursement under this section,
total actual expenses paid for the film must equal or exceed
 { - $1 million - }  { +  $750,000 + }.
  (d) Reimbursement under this section shall be made from moneys
credited to or deposited in the Oregon Production Investment Fund
during the biennium in which the actual expenses were paid or any
prior biennium. A reimbursement may not be made to the extent
funds are not available in the fund to make the reimbursement.
  (3)(a) Total actual expenses supporting a claim for
reimbursement under this section must be verified by the Oregon
Film and Video Office. The production company must submit to the
office proof of the actual expenses paid in Oregon to produce the
film. The proof must include any documentation that may be
required by the office in its discretion to verify the actual
expenses.
  (b) The office may charge the production company for costs
reasonably incurred to verify the actual expenses, including but
not limited to the cost for a review or audit of the supporting
documentation by an accountant or auditor. The office may require
the department to deduct the costs incurred by the office in
performing its review or audit from any reimbursement made to the
production company under this section.
  (c) The office may adopt rules that establish a procedure for
the submission and verification of actual expenses.
  SECTION 2.  { + The amendments to ORS 284.368 by section 1 of
this 2007 Act apply to films starting principal photography on or
after January 1, 2007. + }
  SECTION 3.  { + This 2007 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fourth
Legislative Assembly adjourns sine die. + }
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