Georgia 2023-2024 Regular Session

Georgia House Bill HB548 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	23 LC 43 2671
2	2	H. B. 548
3	3	- 1 -
4	4	House Bill 548
5	5	By: Representatives Schofield of the 63
6	6	rd
7	7	, Beverly of the 143
8	8	rd
9	9	, Gilliard of the 162
10	10	nd
11	11	, Scott
12	12	of the 76
13	13	th
14	14	, and Cannon of the 58
15	15	th
16	16
17	17	A BILL TO BE ENTITLED
18	18	AN ACT
19	19	To amend Code Section 48-7-40.26 of the Official Code of Georgia Annotated, the "Georgia
20	20	1
21	21	Entertainment Industry Investment Act," so as to impose a fee on certain sales and transfers2
22	22	of tax credits; to require the submission of diversity plans in connection with new state3
23	23	certified productions; to provide that certain minimum conditions shall be met to obtain the4
24	24	tax credit; to provide for an additional 2 percent tax credit for state certified productions that5
25	25	meet or exceed certain expenditure and payroll requirements for members of a minority and6
26	26	minority business enterprises; to provide for accountability; to provide for an additional 27
27	27	percent tax credit for filming on location in certain blighted or distressed areas; to establish8
28	28	the Georgia Production Workforce Development Trust Fund and dedicate proceeds from the9
29	29	sale or transfer fee to such fund; to provide for compliance with constitutional requirements;10
30	30	to provide for an effective date and automatic repeal; to provide for definitions; to provide11
31	31	for related matters; to repeal conflicting laws; and for other purposes.12
32	32	BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:13 23 LC 43 2671
33	33	H. B. 548
34	34	- 2 -
35	35	SECTION 1.
36	36	14
37	37	Code Section 48-7-40.26 of the Official Code of Georgia Annotated, the "Georgia15
38	38	Entertainment Industry Investment Act," is amended in subsection (b) by adding two new16
39	39	paragraphs to read as follows:17
40	40	"(4.1) 'Member of a minority' means an individual who is:
41	41	18
42	42	(A) Black;19
43	43	(B) Hispanic;20
44	44	(C) Asian Pacific American;21
45	45	(D) Native American; or22
46	46	(E) Asian Indian American.23
47	47	(4.2) 'Minority business enterprise' means any business owned by:24
48	48	(A) An individual who is a member of a minority who reports as his or her personal25
49	49	income for Georgia income tax purposes the income of such business;26
50	50	(B) A partnership in which a majority of the ownership interest is owned by one or27
51	51	more members of a minority who report as their personal income for Georgia income28
52	52	tax purposes more than 50 percent of the income of the partnership; or29
53	53	(C) A corporation organized under the laws of this state in which a majority of the30
54	54	common stock is owned by one or more members of a minority who report as their31
55	55	personal income for Georgia income tax purposes more than 50 percent of the32
56	56	distributed earnings of the corporation."33
57	57	SECTION 2.34
58	58	Said Code section is further amended in subsection (g) by revising paragraph (2) as follows:35
59	59	"(2)(A) Such production company or qualified interactive entertainment production36
60	60	company shall submit to the Department of Economic Development and to the37
61	61	Department of Revenue a written notification of any transfer or sale of tax credits38
62	62	within 30 days after the transfer or sale of such tax credits. The notification shall39 23 LC 43 2671
63	63	H. B. 548
64	64	- 3 -
65	65	include such production company's or qualified interactive entertainment production
66	66	40
67	67	company's tax credit balance prior to transfer, the credit certificate number, the41
68	68	remaining balance after transfer, all tax identification numbers for each transferee, the42
69	69	date of transfer, the amount transferred, and any other information required by the43
70	70	Department of Economic Development or the Department of Revenue; and
71	71	44
72	72	(B) On and after July 1, 2023, the notification required by subparagraph (A) of this45
73	73	paragraph shall also include a fee, which shall be imposed upon each such transfer or46
74	74	sale of tax credits, in the amount of 1 percent of the total credits sold or transferred,47
75	75	and collected by the state revenue commissioner and remitted to the general fund of the48
76	76	state treasury;49
77	77	SECTION 3.50
78	78	Said Code section is further amended in paragraph (4) of subsection (l) by adding a new51
79	79	subparagraph to read as follows:52
80	80	"(E.1) Determine whether the diversity plan required by subsection (m) of this Code53
81	81	section was properly filed and followed for the state certified production, and, if54
82	82	applicable, whether the conditions for the additional tax credit allowed by55
83	83	subsection (n) of this Code section were duly satisfied."56
84	84	SECTION 4.57
85	85	Said Code section is further amended by adding four new subsections to read as follows:58
86	86	"(m) For productions first approved as state certified productions by the Department of59
87	87	Economic Development on or after July 1, 2023, a production company shall not be60
88	88	eligible to claim a tax credit allowed pursuant to this Code section for a state certified61
89	89	production unless:62
90	90	(1) The production company has filed with the Department of Revenue and the63
91	91	Department of Economic Development, within three months of incurring its first64 23 LC 43 2671
92	92	H. B. 548
93	93	- 4 -
94	94	expenses for qualified production activities, a diversity plan that outlines specific goals65
95	95	and strategies for both the company and its affiliates for ensuring that its workforce for66
96	96	the state certified production reflects the diversity of this state such that minorities and67
97	97	minority business enterprises are employed or contracted with at levels sufficient to68
98	98	represent equitable participation among the qualified production activities claimed for69
99	99	such state certified production; and70
100	100	(2) The Department of Revenue has approved such diversity plan provided for in71
101	101	paragraph (1) of this subsection as meeting the requirements for diversity plans72
102	102	established by the department and verified that the production company met its goals, or73
103	103	that the production company made good faith efforts to meet such goals.74
104	104	(n)(1) For productions first approved as state certified productions by the Department75
105	105	of Economic Development on or after July 1, 2023:76
106	106	(A) At least 15 percent of the total employees hired or businesses contracted with for77
107	107	each production shall be members of a minority or shall be minority business78
108	108	enterprises and at least 15 percent of the total payroll for all employees for each79
109	109	production, including pay to loan-out companies and pay for all above-the-line and80
110	110	below-the-line employees, shall be paid to such members of a minority or minority81
111	111	business enterprises; and82
112	112	(B) Each production company shall be allowed an additional tax credit equal to 283
113	113	percent of its base investment; provided, however, that at least 30 percent of the total84
114	114	employees hired or businesses contracted with for such production are members of a85
115	115	minority or are minority business enterprises and at least 30 percent of the total payroll86
116	116	for all employees, including pay to loan-out companies and pay for all above-the-line87
117	117	and below-the-line employees, is paid to such members of a minority or minority88
118	118	business enterprises.89
119	119	(2) To be eligible for the additional credit allowed by subparagraph (B) of paragraph (1)90
120	120	of this subsection, a production company shall state in its diversity plan submitted91 23 LC 43 2671
121	121	H. B. 548
122	122	- 5 -
123	123	pursuant to subsection (m) of this Code section that it intends to obtain the additional92
124	124	credit allowed by subparagraph (B) of paragraph (1) of this subsection and that it will93
125	125	provide such records as the department determines are necessary to establish that the94
126	126	conditions for such additional credit have been met or exceeded.95
127	127	(o)(1) For productions first approved as state certified productions by the Department96
128	128	of Economic Development on or after July 1, 2023, a production company shall be97
129	129	allowed an additional tax credit equal to 2 percent of its base investment; provided,98
130	130	however, that at least 15 percent of the total number of days of filming in Georgia occur99
131	131	on-location in census tracts which the commissioner of the Department of Community100
132	132	Affairs has identified as blighted or distressed areas as such term is defined in Code101
133	133	Section 36-44-3.102
134	134	(2) To be eligible for the additional credit allowed by paragraph (1) of this subsection,103
135	135	a production company shall create a film location plan that states how it intends to obtain104
136	136	the additional credit allowed by paragraph (1) of this subsection and that it will provide105
137	137	such records as the department determines are necessary to establish that the conditions106
138	138	for such additional credit have been met or exceeded.107
139	139	(p)(1)(A) There shall be established a Georgia Production Workforce Development108
140	140	Trust Fund as a separate fund in the state treasury. The Commissioner of Labor shall109
141	141	be the trustee of such fund.110
142	142	(B) The state treasurer shall invest the money held in the fund in the same manner in111
143	143	which state funds are invested as authorized by the State Depository Board pursuant to112
144	144	Article 3 of Chapter 17 of Title 50. Interest earned by the money held in the trust fund113
145	145	shall be accounted for separately and shall be credited to the trust fund to be disbursed114
146	146	as other moneys in the trust fund.115
147	147	(2) Under the authority granted and subject to the conditions imposed by Article III,116
148	148	Section IX, Paragraph VI(r) of the Constitution of Georgia, for the period beginning on117
149	149	July 1, 2023, and ending on June 30, 2033, all moneys collected pursuant to118 23 LC 43 2671
150	150	H. B. 548
151	151	- 6 -
152	152	paragraph (1) of subsection (g) of this Code section shall be annually appropriated to the119
153	153	Georgia Production Workforce Development Trust Fund established by this subsection120
154	154	and such funds shall not lapse as otherwise required by Article III, Section IX, Paragraph121
155	155	IV(c) of the Constitution of Georgia. Each annual appropriation shall be made through122
156	156	the General Appropriations Act and shall include all of moneys collected from such123
157	157	sources during the most recently completed fiscal year.124
158	158	(3) All moneys appropriated to the Georgia Production Workforce Development Trust125
159	159	Fund pursuant to paragraph (2) of this subsection shall be dedicated for use and expended126
160	160	by the Commissioner of Labor to train Georgia residents for jobs in the film industry,127
161	161	provided that at least 50 percent of such funds shall be allocated to train members of a128
162	162	minority and at least 50 percent of all private training programs or organizations utilized129
163	163	shall be minority business enterprises.130
164	164	(4) The Commissioner of Labor shall prepare an accounting of the funds expended131
165	165	pursuant to this subsection during the most recently completed fiscal year to be provided132
166	166	to the Office of Planning and Budget, the House Budget and Research Office, and the133
167	167	Senate Budget and Evaluation Office by January 1 of each year."134
168	168	SECTION 5.135
169	169	In accordance with the requirements of Article III, Section IX, Paragraph VI(r) of the136
170	170	Constitution of Georgia, this Act shall not become law and shall stand automatically repealed137
171	171	if it does not receive the requisite two-thirds' majority vote in both the Senate and the House138
172	172	of Representatives or the amount of the funds dedicated by this Act would cause the total139
173	173	amount appropriated pursuant to such constitutional provision to equal or exceed 1 percent140
174	174	of the previous fiscal year's state revenues subject to appropriations.141 23 LC 43 2671
175	175	H. B. 548
176	176	- 7 -
177	177	SECTION 6.
178	178	142
179	179	Except as provided for in Section 5 of this Act, this Act shall become effective on July 1,143
180	180	2023.144
181	181	SECTION 7.145
182	182	All laws and parts of laws in conflict with this Act are repealed.146