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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 603 By: Rader
AS INTRODUCED
An Act relating to film expenditure rebates; amending
68 O.S. 2011, Section 3624, as la st amended by
Section 3, Chapter 313, O.S.L. 2019 ( 68 O.S. Supp.
2020, Section 3624), which relates to the Oklahoma
Film Enhancement Rebate Program; clarifying certain
payments; limiting liability fo r payments to balance
of specified fund; updating statuto ry reference; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2011, Section 3624, as
last amended by Section 3, Chapter 313, O.S.L. 2019 (68 O.S. Sup p.
2020, Section 3624), is amended to read as follo ws:
Section 3624. A. There is hereby created the Oklahoma Film
Enhancement Rebate Program. A rebate in the amount of up to
seventeen percent (17%) of documented expenditures mad e in Oklahoma
this state that are directly attributable to th e production of a
film, television production , or television commercial, as defined in
Section 3623 of this title, in this state, may be paid to the
production company responsibl e for the production. Provided, for
documented expenditures made after July 1 , 2009, the rebate amount
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shall be thirty-five percent (35%), except as provided in subsection
B of this section.
B. The amount of rebate paid to the production company as
provided for in subsection A of this secti on shall be increased by
an additional two percent (2%) of documented expenditures if a
production company spends at least Twenty Thousand Dollars
($20,000.00) for the use of music created by an Oklahoma resident
that is recorded in Oklahoma or for the cos t of recording songs or
music in Oklahoma for use in the production.
C. The rebate program shall be administered by the Office of
the Oklahoma Film and Music Commission and the Oklahoma Tax
Commission, as provided in t he Compete with Canada Film Act.
D. To be eligible for a rebate payment:
1. The production company responsible for a film, television
production, or television commercial, as defined in Section 3623 of
this title, made in this state shall submit document ation to the
Office of the Oklahoma F ilm and Music Commission of the amount of
wages paid for employment in this state to residents of this state
directly relating to the production and the amount of other
production costs incurred in this state directly r elating to the
production;
2. The production company has filed or will file a ny Oklahoma
tax return or tax document which may be required by law;
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3. Except major studio productions, the production company
shall provide the name of the completion guaranto r and a copy of the
bond guaranteeing the completion of the project or if a fi lm has not
secured a completion bond, the production company shall provide
evidence that all Oklahoma crew and local vendors have been paid and
there are no liens against the pro duction company pending in the
state;
4. The minimum budget for the film shal l be Fifty Thousand
Dollars ($50,000.00) of which not less than Twenty -five Thousand
Dollars ($25,000.00) shall be expended in this state;
5. The production company shall provid e evidence of financing
for production prior to the commencement of principal photography;
and
6. The production company shall provide evidence of a
certificate of general liability insurance with a minimum coverage
of One Million Dollars ($1,000,000.00) and a workers’ compensation
policy pursuant to state law, which shall include coverage of
employer’s liability.
E. A production company shall not be eligible to receive both a
rebate payment pursuant to the provisions of this act Section 3621
et seq. of this title and an exemption from sales taxes pursuant to
the provisions of paragraph 23 of Sec tion 1357 of this ti tle. If a
production company has received such an exemption from sales taxes
and submits a claim for rebate pursuant to the provisions of the
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Compete with Canada Film Act, the com pany shall be required to fully
repay the amount of the exemption to the Tax Commission. A claim
for a rebate shall include documentation from the Tax Commission
that repayment has been made as required herein or shall include an
affidavit from the produc tion company that the company has not
received an exemption from sales taxes pursuant to the provisions of
paragraph 21 of Section 1357 of this title.
F. The Office shall approve or disapprove all claims for rebate
and shall notify the Tax Commission. The Tax Commission shall, upon
notification of approval fr om the Office of the Film and Music
Commission, issue payment for all approved claims from funds in the
Oklahoma Film Enhancement Rebate Program Revolving Fund cre ated in
Section 3625 of this title. Excluding any rebate payments to high
impact productions as provided for in subsection G of this section,
the amount of payments claims prequalified and approved by the
Office in any single fiscal year shall not exceed Eight Million
Dollars ($8,000,000.00) . If the amount of approved claims exceeds
the amount specified in this subsection in a fiscal year, payments
shall be made in the order in which the claims are approved by the
Office. If an approved claim is not paid in whole or in part, the
unpaid claim or unpaid portion may be paid in the following fiscal
year subject to the limitations specified in this subsection. The
liability of this state to make incentive payments pursuant to this
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act shall be limited to the balance of the Ok lahoma Film Enhancement
Rebate Program Revolving Fund.
G. 1. At the time the Office of the Film and Music Commission
issues a conditional prequalification for a production, such
prequalification may include a proposed designat ion as a high impact
production, as defined in Section 3623 of this title.
2. The proposed designation must be approved by the Cabinet
Secretary for Commerce and Tourism.
3. If the high impact production otherwise meets all of the
requirements of the Com pete With Canada Act and the Office gives
final approval to rebate claims, such rebate c laims shall not be
subject to the Eight Million Dollar ($8,000,000.00) cap provided for
in subsection F of this section.
4. The payment of a rebate claim approved by t he Office for a
production designated as a high impact production by the Cabinet
Secretary may be made as follows:
a. by special appropriation to the Oklahoma Film
Enhancement Rebate Program Revolving Fund, if the
claim is approved during a regular or spec ial session
of the Oklahoma Legislature, or
b. by payment from the Oklahoma Quick Action Closing Fund
pursuant to Section 48.2 of Title 62 of the Oklahoma
Statues, if the claim is approved when the Oklahoma
Legislature is not in session.
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SECTION 2. This act shall become effective November 1, 2021.
58-1-1142 QD 1/20/2021 10:31:14 PM