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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
COMMITTEE SUBSTITUTE
FOR
SENATE BILL 603 By: Rader
COMMITTEE SUBSTITUTE
An Act relating to film expenditure rebates; amending
68 O.S. 2011, Section 3624, as last 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 for pa yments to balance
of specified fund; updating statutory reference; a nd
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. Supp.
2020, Section 3624), is amended to read as follows:
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 ma de in Oklahoma
this state that are directly attributable to the 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 responsible for the produc tion. Provided, for
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documented expenditu res made after July 1, 2009, the rebate amount
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 subse ction A of this section shall be increase d 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 Ok lahoma or for the cost 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 the 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 documentation to the
Office of the Oklahoma Film and Music Commis sion 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 relating to the
production;
2. The production company has filed or will file any 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 guarantor and a copy of the
bond guaranteeing the completion of t he project or if a film 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 production company pending in the
state;
4. The minimum budget for the film shall 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 provide evidence of fi nancing
for production prior to the comme ncement 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 Section 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 company shall be requir ed 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 production company that th e 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 sha ll, upon
notification of approval from 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 created 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 in claims prequalified and approved by the
Office for any single fiscal year shall not exceed Eight Millio n
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 port ion 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 t he Oklahoma 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 designation as a high impact
production, as defined in Section 3623 of t his 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 Compete With Canada Act an d the Office gives
final approval to reba te 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 the Office for a
production designated as a high impact productio n 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 special 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.
58-1-1842 QD 2/24/2021 11:41:56 AM