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ENGROSSED SENATE
BILL NO. 603 By: Rader of the Senate
and
Pfeiffer of the House
An Act relating to film expenditure rebates; amending
68 O.S. 2011, Section 3624, as last amended b y
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 ; 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. 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 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 responsible for the produc tion. 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 subse ction A of this section shall be incre ased by
an additional two percent (2%) of documented expe nditures 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 so ngs 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 fo r a rebate payment:
1. The production company responsibl e 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 Com mission of the amount of
wages paid for employment in thi s 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 a ny Oklahoma
tax return or tax doc ument 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 o f the project or if a fi lm has not
secured a completion b ond, 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 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 provide evidence of fi nancing
for production prior to the co mmencement 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 l aw, 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 t o
the provisions of paragraph 23 of Section 1357 of this title. 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 req uired to fully
repay the amount of the exemption to the T ax 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 the company has not
received an exemption from sales tax es 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 from the Office of t he 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 reb ate payments to high
impact productions as provided for i n 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 amo unt of approved claims exceeds
the amount specified in th is 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 p ortion 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 t he 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 o f this title.
2. The proposed designation must be approv ed 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 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 the Office for a
production designated as a high impact produc tion 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.
Passed the Senate the 3rd day of March, 2021.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2021.
Presiding Officer of the House
of Representatives