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ENGROSSED SENATE
BILL NO. 737 By: Hall of the Senate
and
Fetgatter of the House
An Act relating to film rebate incentives; amending
68 O.S. 2021, Sections 3635 and 3638, which relates
to the Filmed in Oklahoma Act of 2021; modifying
period for certain rate of reimbursement; modifying
requirements to provide certain promotional materials
for this state; updating statutory reference;
clarifying statutory language; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 3635, is
amended to read as follows:
Section 3635. A. Subject to the final approval of the
eligibility application by the Oklahoma Department of Comm erce, a
requirement that the incentive payments made pursuant to the
provisions of this act the Filmed in Oklahoma Act of 2021 achieve
the maximum positive impact for the Okla homa economy and subject to
the Oklahoma workforce requirements of Section 7 of this act Section
3637 of this title, the base incentive amount for a project filmed
in this state shall be a maximum of twenty percent (20%) of the
qualified production expenditure amount. An incentive for a project
filmed in this state for wages paid to nonresident crew, not
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including above-the-line personnel, befor e July 1, 2023 April 1,
2023, shall be provided in the amount of seven and one-half percent
(7.5%).
B. In addition to the amount authorized by subsection A of this
section, there may be an additional incentive amount, subject to the
final approval of the Oklahoma Department of Commerce, in the
maximum amount of:
1. Three percent (3%) of the qualified production expenditure
amount for projects where at least twenty-five percent (25%) of main
crew principal photo graphy days are filmed on location, exc luding
sound stage production, in any county of this state if the county
has a population of less t han two hundred fifty thousand (250,000)
persons according to the federal Federal Decennial Census or most
recent population estimate;
2. Two percent (2%) of the qualified production expenditure
amount for projects whose hub location, as determined by the
Department, is or for projects where at least twenty-five percent
(25%) of main crew principal photography days are f ilmed on
location, excluding sound stage production , in a municipality having
a population of thirteen thousand (13,000) or fewer persons
according to the federal Federal Decennial Census or most recent
population estimate regardless of the county in which the
municipality is located or partially located;
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3. Five percent (5%) of the qualified production expenditure
amount for soundstage expenditures if at least twenty-five percent
(25%) of main crew principal photograph y days are filmed at a
qualified soundstage facility;
4. For eligible television series as defined in paragraph 4 of
Section 2 3632 of this act title:
a. two percent (2%) of the qualified production
expenditure amount for an eligible television episodic
pilot, and
b. five percent (5%) of the qualified production
expenditure amount if a telev ision series is filmed
for one or more seasons;
5. Five percent (5%) of the qualified production expenditure
amount for an eligible multi-film deal as defined in paragraph 7 of
Section 2 3632 of this act title; and
6. Three percent (3%) of the qualified production expenditure
amount based on expenditures paid to Oklahoma vendors for post-
production expenses with a minimum expenditure of three percent (3%)
of Oklahoma production expenditures . Post-production expenditures
include but are not limited to the following categories:
a. sound recording or mixing,
b. color grading,
c. editorial work,
d. visual effects,
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e. animation,
f. deliverables, excluding marketing and advertising,
g. music production, recording, mixing or composition,
h. licensing of Oklahoma music, and
i. editing equipment or editing facility rental.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 3638, is
amended to read as follows:
Section 3638. All production projects for which any incentive
is paid pursuant to t he provisions of this act shall contain a logo
qualifying promotion of this state, as approved by the Oklahom a
Department of Commerce, to be displayed in the end credits of the
finished production or, if the production does not contain end
credits, the Oklahoma Department of Commerce shall obtain a
commitment by the produ ction company to provide equivalent value as
determined by the Oklahoma Department of Commerce which shall
include the following:
1. For a film production with end credits, a five (5) second
long static or animated logo , approved by the Department, in the end
credits before the below -the-line crew crawl for the life of the
project;
2. For a film production without end credits and television
series or projects, a five (5) second long static or animated logo,
approved by the Departme nt, during each broadcast worldwide for the
life of the project; or
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3. For all other film productions, including but not limited to
advertising messages and video gaming, a logo approved by the
Department, visible for no less than one (1) second, or a com mitment
to provide equivalent value, as determined by the De partment.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
Passed the Senate the 8th day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2023.
Presiding Officer of the House
of Representatives