AL
Alabama Senate Bill SB286

Alabama 2024 Regular Session

Alabama Senate Bill SB286 Compare Versions

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33 SB286
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55 By Senator Gudger
66 RFD: Fiscal Responsibility and Economic Development
77 First Read: 04-Apr-24
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12-5 SB286 Enrolled
12+5 ZLAPKKR-1 03/19/2024 KHF (F)KHF 2024-1213
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1414 First Read: 04-Apr-24
15-Enrolled, An Act,
15+SYNOPSIS:
16+Under existing law, the management of the
17+Alabama Film Office is vested in a Director who is
18+appointed by the Governor. The salary of the Director
19+is established by law.
20+This bill would require the Secretary of the
21+Department of Commerce to appoint and establish the
22+salary for the Director of the Alabama Film Office.
23+This bill would also modify the definition of
24+Department as it relates to film incentives to mean the
25+Department of Commerce.
26+A BILL
27+TO BE ENTITLED
28+AN ACT
1629 Relating to the Alabama Film Office; to amend Sections
1730 41-7A-1, 41-7A-42, and 41-7A-43, Code of Alabama 1975, to
1831 grant the appointment and salary determination powers of the
1932 Director of the Alabama Film Office to the Alabama Department
2033 of Commerce; and to modify the definition of "department".
2134 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
2235 Section 1. Sections 41-7A-1, 41-7A-42, and 41-7A-43,
2336 Code of Alabama 1975, are hereby amended as follows:
24-"§41-7A-1
25-On September 1, 1995, the management of the Alabama
26-Film Office shall be vested in a director who shall be
27-appointed by the Governor secretary of the department and
28-shall serve at his or her pleasure. The salary shall be
29-established by the secretary of the department and approved by
30-the Governor at an amount not to exceed forty-eight thousand
31-dollars ($48,000) annually and adjusted thereafter consistent
32-with general cost-of-living adjustments approved for state
33-employees. In fixing the salary, the Governor shall give due
34-consideration to the salaries of comparable positions in other
35-states in the southeast . The director shall have the same
36-rights, privileges, benefits, and membership status in the
37-Employees' Retirement System as other unclassified employees
38-in the state service."
39-"§41-7A-42
40-For purposes of this article, the following terms shall
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66+Code of Alabama 1975, are hereby amended as follows:
67+"§41-7A-1
68+On September 1, 1995, the management of the Alabama
69+Film Office shall be vested in a director who shall be
70+appointed by the Governor secretary of the department and
71+shall serve at his or her pleasure. The salary shall be
72+established by the secretary of the department and approved by
73+the Governor at an amount not to exceed forty-eight thousand
74+dollars ($48,000) annually and adjusted thereafter consistent
75+with general cost-of-living adjustments approved for state
76+employees. In fixing the salary, the Governor shall give due
77+consideration to the salaries of comparable positions in other
78+states in the southeast . The director shall have the same
79+rights, privileges, benefits, and membership status in the
80+Employees' Retirement System as other unclassified employees
81+in the state service."
82+"§41-7A-42
7083 For purposes of this article, the following terms shall
7184 have the following meanings:
7285 (1) COMPANY. A corporation, partnership, limited
7386 liability company, or any other business entity.
7487 (2) DEPARTMENT. The Alabama Department of
7588 CommerceRevenue.
7689 (3) ENTERTAINMENT INDUSTRY. Those persons or entities
7790 engaged in the production of entertainment content as defined
7891 under paragraph a. of subdivision (8)a.
7992 (4) EXPENDED IN ALABAMA. In the case of tangible
8093 property, property which is acquired or leased from a source
8194 within the State of Alabama; in the case of services, services
82-performed for a qualified production project in the State of
83-Alabama.
84-(5) OFFICE. The Alabama Film Office.
85-(6) PAYROLL. All salary, wages, and other compensation,
86-including related benefits, including specifically, but not
87-limited to, compensation and benefits provided to resident and
88-nonresident producers, directors, writers, actors, and other
89-personnel involved in qualified production projects in
90-Alabama.
91-(7) PRODUCTION EXPENDITURES.
92-a. The term includes preproduction, production, and
93-postproduction expenditures incurred in the State of Alabama
94-that are directly used in a state-certified production,
95-including, but not limited to, the following: Set construction
96-and operation, wardrobe, makeup, set accessories, and related
97-services; costs associated with photography and sound
98-synchronization, lighting, and related services and materials;
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124+within the State of Alabama; in the case of services, services
125+performed for a qualified production project in the State of
126+Alabama.
127+(5) OFFICE. The Alabama Film Office.
128+(6) PAYROLL. All salary, wages, and other compensation,
129+including related benefits, including specifically, but not
130+limited to, compensation and benefits provided to resident and
131+nonresident producers, directors, writers, actors, and other
132+personnel involved in qualified production projects in
133+Alabama.
134+(7) PRODUCTION EXPENDITURES.
135+a. The term includes preproduction, production, and
136+postproduction expenditures incurred in the State of Alabama
137+that are directly used in a state-certified production,
138+including, but not limited to, the following: Set construction
139+and operation, wardrobe, makeup, set accessories, and related
140+services; costs associated with photography and sound
128141 synchronization, lighting, and related services and materials;
129142 editing and related services; rental of facilities and
130143 equipment; leasing of vehicles; costs of food and lodging;
131144 costs of catering; digital or tape editing, film processing,
132145 transfer of film to tape or digital format; transfer direct to
133146 DVD, cable, or satellite for distribution; sound mixing,
134147 special and visual effects including duplication, film
135148 processing digital, DVD, music composition, and satellite
136149 distribution; total aggregate payroll; music; airfare;
137150 insurance costs of bonding; or other similar production
138151 expenditures as determined by rule or regulation.
139152 b. The term includes financial contributions or
140-educational or workforce development in partnership with
141-related educational institutions, or local industry
142-organizations, or both, contributed toward the furtherance of
143-the local entertainment media industries.
144-c. The term does not include postproduction
145-expenditures for marketing or any amounts that are paid to
146-persons or entities as a result of their participation in
147-profits from the exploitation of a motion picture production.
148-(8) QUALIFIED PRODUCTION.
149-a. The term means entertainment content created in
150-whole or in part within the state, including motion pictures;
151-soundtracks for motion pictures; documentaries; long-form,
152-specials, miniseries, series, sound recordings, videos and
153-music videos, and interstitials television programming;
154-interactive television; interactive games; video games;
155-commercials; infomercials; any format of digital media,
156-including an interactive website that is intended for national
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182+b. The term includes financial contributions or
183+educational or workforce development in partnership with
184+related educational institutions, or local industry
185+organizations, or both, contributed toward the furtherance of
186+the local entertainment media industries.
187+c. The term does not include postproduction
188+expenditures for marketing or any amounts that are paid to
189+persons or entities as a result of their participation in
190+profits from the exploitation of a motion picture production.
191+(8) QUALIFIED PRODUCTION.
192+a. The term means entertainment content created in
193+whole or in part within the state, including motion pictures;
194+soundtracks for motion pictures; documentaries; long-form,
195+specials, miniseries, series, sound recordings, videos and
196+music videos, and interstitials television programming;
197+interactive television; interactive games; video games;
198+commercials; infomercials; any format of digital media,
186199 including an interactive website that is intended for national
187200 or international distribution or exhibition to the general
188201 public; and any trailer, pilot, video teaser, or demo created
189202 primarily to stimulate the sale, marketing, promotion, or
190203 exploitation of future investment in either a product or a
191204 qualified production via any means and media in any digital
192205 media format, film, or videotape, provided such program meets
193206 all the underlying criteria of a qualified production.
194207 b. The term does not include any ongoing television
195208 program created primarily as news, weather, or financial
196209 market reports, a production featuring current events,
197210 sporting events, an awards show or other gala event, a
198-production whose sole purpose is fund-raising, a long-form
199-production that primarily markets a product or service, a
200-production used for corporate training or in-house corporate
201-advertising or other similar productions; nor does the term
202-include any production for which records are required to be
203-maintained under 18 U.S.C. § 2257 with respect to sexually
204-explicit content; nor does the term mean or include any form
205-of gambling, gaming, wagering, or pari-mutuel wagering
206-activity or enterprise.
207-(9) QUALIFIED PRODUCTION COMPANY.
208-a. The term means a company engaged in the business of
209-producing a qualified production, as that term is defined.
210-b. The term does not mean or include any company owned,
211-affiliated, or controlled, in whole or in part, by any company
212-or person which is in default on a loan.
213-(10) RESIDENT OF ALABAMA. A natural person and, for the
214-purpose of determining eligibility for the incentives provided
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240+sporting events, an awards show or other gala event, a
241+production whose sole purpose is fund-raising, a long-form
242+production that primarily markets a product or service, a
243+production used for corporate training or in-house corporate
244+advertising or other similar productions; nor does the term
245+include any production for which records are required to be
246+maintained under 18 U.S.C. § 2257 with respect to sexually
247+explicit content; nor does the term mean or include any form
248+of gambling, gaming, wagering, or pari-mutuel wagering
249+activity or enterprise.
250+(9) QUALIFIED PRODUCTION COMPANY.
251+a. The term means a company engaged in the business of
252+producing a qualified production, as that term is defined.
253+b. The term does not mean or include any company owned,
254+affiliated, or controlled, in whole or in part, by any company
255+or person which is in default on a loan.
256+(10) RESIDENT OF ALABAMA. A natural person and, for the
244257 purpose of determining eligibility for the incentives provided
245258 by this article, any person domiciled in the State of Alabama
246259 and any other person who maintains a permanent place of abode
247260 within the state and spends in the aggregate more than six
248261 months of each year within the State of Alabama.
249262 (11) STATE-CERTIFIED PRODUCTION. A qualified production
250263 approved by the office, produced by a qualified production
251264 company."
252265 "§41-7A-43
253266 (a) Beginning January 1, 2009, a qualified production
254267 company shall be entitled to a rebate for production
255268 expenditures, as defined in subdivision (7) of Section
256-41-7A-42(7), related to a state-certified production. The
257-rebate shall be equal to 25 percent of the state-certified
258-production's production expenditures excluding payroll paid to
259-residents of Alabama plus 35 percent of all payroll paid to
260-residents of Alabama for the state-certified production,
261-provided the total production expenditures for a project must
262-equal or exceed at least five hundred thousand dollars
263-($500,000), but no rebate shall be available for production
264-expenditures incurred after the first twenty million dollars
265-($20,000,000) of production expenditures expended in Alabama
266-on a state-certified production.
267-(b) A single episode in a television series or
268-miniseries may be considered a single production project for
269-purposes of this section. However, in determining the total
270-production expenditures incurred by a qualified production
271-company on a qualified production, the total production
272-expenditures of a television series or miniseries, whether a
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298+expenditures, as defined in subdivision (7) of Section
299+41-7A-42(7), related to a state-certified production. The
300+rebate shall be equal to 25 percent of the state-certified
301+production's production expenditures excluding payroll paid to
302+residents of Alabama plus 35 percent of all payroll paid to
303+residents of Alabama for the state-certified production,
304+provided the total production expenditures for a project must
305+equal or exceed at least five hundred thousand dollars
306+($500,000), but no rebate shall be available for production
307+expenditures incurred after the first twenty million dollars
308+($20,000,000) of production expenditures expended in Alabama
309+on a state-certified production.
310+(b) A single episode in a television series or
311+miniseries may be considered a single production project for
312+purposes of this section. However, in determining the total
313+production expenditures incurred by a qualified production
314+company on a qualified production, the total production
302315 expenditures of a television series or miniseries, whether a
303316 single season or multiple seasons thereof, to be filmed within
304317 a period of 12 consecutive months, each individual episode of
305318 which separately and independently meets the definition of a
306319 qualified production, may be aggregated to meet the monetary
307320 requirements set forth in subsection (a) as long as each
308321 individual episode within the series pertains to the same
309322 subject as the other episodes in the series.
310323 (c) A single commercial may be considered a single
311324 production project for purposes of this section. However, in
312325 determining the total production expenditures incurred by a
313326 qualified production company on a qualified production, the
314-total production expenditures of a series of commercials to be
315-filmed within a period of 12 consecutive months, each of which
316-separately and independently meets the definition of a
317-qualified production, may be aggregated to meet the monetary
318-requirements set forth in subsection (a) as long as each
319-individual commercial within the series pertains to the same
320-subject as the other commercials in the series and was planned
321-as part of a series of commercials to be filmed within a
322-period of 12 consecutive months at the time the qualified
323-production company applied for the incentives.
324-(d) A qualified production company shall be entitled to
325-the rebate for production expenditures as provided in
326-subsection (a) for a qualified project that is limited only to
327-the production of a soundtrack used in a motion picture or
328-documentary, provided that the production expenditures for the
329-soundtrack project must equal or exceed at least fifty
330-thousand dollars ($50,000), but no rebate shall be available
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356+qualified production company on a qualified production, the
357+total production expenditures of a series of commercials to be
358+filmed within a period of 12 consecutive months, each of which
359+separately and independently meets the definition of a
360+qualified production, may be aggregated to meet the monetary
361+requirements set forth in subsection (a) as long as each
362+individual commercial within the series pertains to the same
363+subject as the other commercials in the series and was planned
364+as part of a series of commercials to be filmed within a
365+period of 12 consecutive months at the time the qualified
366+production company applied for the incentives.
367+(d) A qualified production company shall be entitled to
368+the rebate for production expenditures as provided in
369+subsection (a) for a qualified project that is limited only to
370+the production of a soundtrack used in a motion picture or
371+documentary, provided that the production expenditures for the
372+soundtrack project must equal or exceed at least fifty
360373 thousand dollars ($50,000), but no rebate shall be available
361374 for production expenditures incurred after the first three
362375 hundred thousand dollars ($300,000) of production expenditures
363376 expended in Alabama.
364377 (e) A qualified production company shall be entitled to
365378 the rebate for production expenditures as provided in
366379 subsection (a) for a qualified project that is limited only to
367380 the production of a music video, provided that the production
368381 expenditures for the music video equal or exceed fifty
369382 thousand dollars ($50,000), but no rebate shall be available
370383 for production expenditures incurred after the first two
371384 hundred thousand dollars ($200,000) of production expenditures
372-expended in Alabama.
373-(f) The rebate described in this section may be applied
374-to offset any income tax liability applicable to a qualified
375-production company for the tax year in which production
376-activity in Alabama on the state-certified production
377-concludes.
378-(g) If the rebate available under this section exceeds
379-a qualified production company's Alabama income tax liability
380-for the tax year in which production activity in Alabama
381-concludes on the state-certified production, the excess of the
382-rebate over a qualified production company's Alabama income
383-tax liability shall be rebated to the qualified production
384-company.
385-(h) The department and the Commissioner of the
386-Department of Revenue and the office shall promulgateadopt
387-rules necessary to administer this section."
388-Section 2. This act shall become effective on June 1,
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414+hundred thousand dollars ($200,000) of production expenditures
415+expended in Alabama.
416+(f) The rebate described in this section may be applied
417+to offset any income tax liability applicable to a qualified
418+production company for the tax year in which production
419+activity in Alabama on the state-certified production
420+concludes.
421+(g) If the rebate available under this section exceeds
422+a qualified production company's Alabama income tax liability
423+for the tax year in which production activity in Alabama
424+concludes on the state-certified production, the excess of the
425+rebate over a qualified production company's Alabama income
426+tax liability shall be rebated to the qualified production
427+company.
428+(h) The department and the Commissioner of the
429+Department of Revenue and the office shall promulgateadopt
430+rules necessary to administer this section."
418431 Section 2. This act shall become effective on June 1,
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421432 2024.
422-________________________________________________
423-President and Presiding Officer of the Senate
424-________________________________________________
425-Speaker of the House of Representatives
426-SB286
427-Senate 16-Apr-24
428-I hereby certify that the within Act originated in and passed
429-the Senate.
430-Patrick Harris,
431-Secretary.
432-House of Representatives
433-Passed: 07-May-24
434-By: Senator Gudger
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