ENGR. H. A. to ENGR. S. B. NO. 737 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED HOUSE AMENDME NT TO 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; mod ifying requirements to provide certain promotional materials for this state; updating statutory reference; clarifying statutory language; and declaring an emergency. AMENDMENT NO. 1. Strike the title, enacting clause and entire bill and insert: "An Act relating to film rebate incentives; amending 68 O.S. 2021, Sections 3635 and 3638, which relate to the Filmed in Oklahoma Act of 2021; modifyi ng period for certain rate of reimbursemen t; 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: ENGR. H. A. to ENGR. S. B. NO. 737 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 3635. A. Subject to the final appro val 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 3637 of this act 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 including above- the-line personnel, before 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; ENGR. H. A. to ENGR. S. B. NO. 737 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 pro duction, 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 lo cated; 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 television 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 ENGR. H. A. to ENGR. S. B. NO. 737 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 6. Three percent (3%) of the qualified production expenditure amount based on expenditures paid to Oklahoma vendors for post- production expenses with a minimu m 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, 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. 20 21, Section 3638, is amended to read as follows: Section 3638. All production projects for which any incentive is paid pursuant to the provisions of this act shall contain a logo, as approved by the Oklahoma Department of Commerce, to be displayed in the end credits of the finished production for a period of at least five (5) seconds or, if the production does not contain end credits, the Oklahoma Department of Commerce shall obtain a commitment by the production company to provide equivalent value as determined by the Oklahoma Department of Commerce. ENGR. H. A. to ENGR. S. B. NO. 737 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 House of Representatives the 18th day of April, 2023. Presiding Officer of the House of Representatives Passed the Senate the ____ day of _______ ___, 2023. Presiding Officer of the Senate ENGR. S. B. NO. 737 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 4. 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 Oklahoma 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 ENGR. S. B. NO. 737 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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; ENGR. S. B. NO. 737 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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, ENGR. S. B. NO. 737 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 5. 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 Oklahoma 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 ENGR. S. B. NO. 737 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Department. SECTION 6. 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 afte r 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