Oklahoma 2023 Regular Session

Oklahoma House Bill HB1362 Compare Versions

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Version 2 (New)

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3		-	ENGR. H. B. NO. 1362 Page 1 1
	3	+	HB1362 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 1362 By: Fetgatter, Stinson,
	30	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	31	+
	32	+	STATE OF OKLAHOMA
	33	+
	34	+	1st Session of the 59th Legislature (2023)
	35	+
	36	+	COMMITTEE SUBSTITUTE
	37	+	FOR
	38	+	HOUSE BILL NO. 1362 By: Fetgatter, Stinson,
30	39		Randleman, Lawson, Baker,
31	40		Kerbs, McDugle, Strom, West
32	41		(Josh), Moore, Vancuren,
33		-	McBride, Martinez, Tedford,
34		-	Sterling, Hasenbeck,
35		-	McEntire and Roe of the
36		-	House
37		-
38		-	and
39		-
40		-	Hall of the Senate
	42	+	McBride, and Martinez
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	47	+
	48	+	COMMITTEE SUBSTITUTE
45	49
46	50		[ revenue and taxation - incentive payments -
47	51		production expenditure amounts - effective date -
48	52		emergency ]
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53	57		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
54	58		SECTION 1. AMENDATORY 68 O.S. 2021, Section 3634, is
55	59		amended to read as follows:
56	60		Section 3634. A. The total amount of rebate payments
57	61		conditionally pre-qualified by the Department of Commerce each
58	62		fiscal year with respect to any of the incentives authorized
59	63		pursuant to this act shall not exceed Thirty Million Dollars
60	64		($30,000,000.00) Eighty Million Dollars ($80,000,000.00) . Projects
61	65		not conditionally pre-qualified for rebate payments due to the
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63		-	ENGR. H. B. NO. 1362 Page 2 1
	67	+	HB1362 HFLR Page 2
	68	+	BOLD FACE denotes Committee Amendments.
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88	94		limitations provided in this section may be conditionally pre -
89	95		qualified by the Department in subsequent fiscal years.
90	96		B. The amount of rebate payments conditionally pre-qualified by
91	97		the Department of Commerce each fiscal year with respect to any of
92	98		the incentives authorized pursuant to this act shall not exceed :
93	99		1. Seven Million Five Hundred Thousand Dollars ( $7,500,000.00)
94	100		Five Million Dollars ($5,000,000.00) for production projects with
95	101		total expenditures of less than Seven Million Five Hundred Thousand
96	102		Dollars ($7,500,000.00) One Million Dollars ($1,000,000.00); and
97	103		2. Twenty-two Million Five Hundred Thousand Dollars
98	104		($22,500,000.00) Eighteen Million Seven Hundred Fifty Thousand
99	105		Dollars ($18,750,000.00) for production projects with total
100	106		expenditures in excess of One Mill ion Dollars ($1,000,000.00) but
101	107		not in excess of Seven Million Five Hundred Thousand Dollars
102	108		($7,500,000.00) or more; and
103	109		3. Fifty Six Million Two Hundred Fifty Thousand Dollars
104	110		($56,250,000.00) for production projects with total expenditures in
105	111		excess of Seven Million Five Hundred Thousand Dollars
106	112		($7,500,000.00).
107	113		C. A production project shall have total expendi tures of Fifty
108	114		Thousand Dollars ($50,000.00) or more to be eligible for the rebate
109	115		payments provided in this act.
110	116		D. In any fiscal year if th e amount of rebate payments
111	117		conditionally pre-qualified by the Department of Commerce are less
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113		-	ENGR. H. B. NO. 1362 Page 3 1
	119	+	HB1362 HFLR Page 3
	120	+	BOLD FACE denotes Committee Amendments.
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138	146		than the limitations provided in this section, the excess rebate
139	147		payments not utilized shall be added to subsequent fiscal year's
140	148		limitation.
141	149		SECTION 2. AMENDATORY 68 O.S. 2021, Section 3635, is
142	150		amended to read as follows:
143	151		Section 3635. A. Subject to the final approval of the
144	152		eligibility application by the Oklahoma Department of Commerce, a
145	153		requirement that the incentive payments made pursuant to the
146	154		provisions of this act achieve the maximum positive impact for the
147	155		Oklahoma economy and subject to the Oklahoma workforce requirements
148	156		of Section 7 3637 of this act title, the base incentive amount for a
149	157		project filmed in this state shall be a maximum of twenty percent
150	158		(20%) of the qualified production expenditure amount. An incentive
151	159		for a project filmed in this state for wages paid to nonresident
152	160		crew, not including above -the-line personnel, before July 1, 2023,
153	161		shall be provided in the amount of seven and one-half percent
154	162		(7.5%).
155	163		B. In addition to the amount authorized by subsection A of this
156	164		section, and subject to the limitation prescribed by subsection C of
157	165		this section, there may be an additional incentive amount, subject
158	166		to the final approval of the Oklahoma Depar tment of Commerce, in the
159	167		maximum amount of:
160	168		1. Three percent (3%) of the qualified production expenditure
161	169		amount for projects where at least twenty-five percent (25%) of main
162	170
163		-	ENGR. H. B. NO. 1362 Page 4 1
	171	+	HB1362 HFLR Page 4
	172	+	BOLD FACE denotes Committee Amendments.
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188	198		crew principal photography days are filmed on location, excluding
189	199		sound stage production, in any county of this state if the county
190	200		has a population of less t han two hundred fifty thousand (250,000)
191	201		persons according to the federal Decennial Cens us or most recent
192	202		population estimate;
193	203		2. Two percent (2%) of the qualified product ion expenditure
194	204		amount for projects whose hub location, as determined by the
195	205		Department, is or projects where at least twenty-five percent (25%)
196	206		of main crew principal phot ography days are filmed on location,
197	207		excluding sound stage production, in a municipality having a
198	208		population of thirteen thousand (13,000) or fewer persons according
199	209		to the federal Decennial Census or most recent population estim ate
200	210		regardless of the count y in which the municipality is located or
201	211		partially located;
202	212		3. Five percent (5%) of the qualified production expenditure
203	213		amount for soundstage expenditures if at least twenty-five percent
204	214		(25%) of main crew principal photograph y days are filmed at a
205	215		qualified soundstage facility;
206	216		4. For eligible television series as defined in paragraph 4 of
207	217		Section 2 3632 of this act title:
208	218		a. two percent (2%) of the qualified production
209	219		expenditure amount for an eligible television episodic
210	220		pilot, and
211	221
212		-	ENGR. H. B. NO. 1362 Page 5 1
	222	+	HB1362 HFLR Page 5
	223	+	BOLD FACE denotes Committee Amendments.
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237	249		b. five percent (5%) of the qualified production
238	250		expenditure amount if a television series is filmed
239	251		for one or more seasons;
240	252		5. Five percent (5%) of the qualified production expenditure
241	253		amount for an eligible multi-film deal as defined in paragraph 7 of
242	254		Section 2 3632 of this act title; and
243	255		6. Three percent (3%) of the qualified production expenditure
244	256		amount based on expenditure s paid to Oklahoma vendors for post-
245	257		production expenses with a minimum expenditure of three percent (3%)
246	258		of Oklahoma production expenditures . Post-production expenditures
247	259		include but are not limited to the following categories:
248	260		a. sound recording or mixin g,
249	261		b. color grading,
250	262		c. editorial work,
251	263		d. visual effects,
252	264		e. animation,
253	265		f. deliverables, excluding marketing and advertising,
254	266		g. music production, recording, mixing or composition,
255	267		h. licensing of Oklahoma music, and
256	268		i. editing equipment or editing fac ility rental.
257	269		C. Notwithstanding any other provisions of this section or the
258	270		provisions of the Filmed In Oklahoma Act of 2021 to the con trary, in
259	271		no case shall the total incentive payments authorized by this
260	272		section exceed thirty percent (30%) of the otherwise qua lified
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262		-	ENGR. H. B. NO. 1362 Page 6 1
	274	+	HB1362 HFLR Page 6
	275	+	BOLD FACE denotes Committee Amendments.
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287	301		production expenditure amount. The incentive payment amount
288	302		prescribed by subsection A of this section may be used in any
289	303		combination with the additional incentive amounts authorized by
290	304		subsection B of this section, but the combination of the ince ntive
291	305		amounts shall not exceed thirty percent (30%).
292	306		SECTION 3. This act shall become effectiv e July 1, 2023.
293	307		SECTION 4. It being immediately necessary for the preservation
294	308		of the public peace, health or safety, an emergency is hereby
295	309		declared to exist, by reason whereof thi s act shall take effect and
296	310		be in full force from and afte r its passage and approval.
297		-	Passed the House of Representatives the 9th day of March, 2023.
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301		-
302		-	Presiding Officer of the House
303		-	of Representatives
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306		-
307		-	Passed the Senate the ___ day of _________, 2023.
308		-
309		-
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312		-	Presiding Officer of the Senate
313		-
314		-
	312	+	COMMITTEE REPORT BY: COMMITTEE ON RULES, dated 03/01/2023 - DO PASS,
	313	+	As Amended and Coauthored.