39 | 48 | | |
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40 | 49 | | [ revenue and taxation – program – findings – terms – |
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41 | 50 | | rebates – administration – rules – requirements – |
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42 | 51 | | exemption – applications – payments – apprentices – |
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43 | 52 | | logo – appearance – Revolving Fund – expenditures – |
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44 | 53 | | funds – date – codification – effective date ] |
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45 | 54 | | |
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46 | 55 | | |
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47 | 56 | | |
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48 | 57 | | |
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49 | 58 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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50 | 59 | | SECTION 1. NEW LAW A new section of law to be codified |
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51 | 60 | | in the Oklahoma Statutes as Section 3642.1 of Title 68, unless there |
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52 | 61 | | is created a duplication in numbering, reads as follows: |
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53 | 62 | | This act shall be known and may be cited as the "Bringing |
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54 | 63 | | Sitcoms Home from Hollywood Pilot Program Act". |
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86 | 96 | | Oklahomans and dollars for Oklahoma businesses, but also enhances |
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87 | 97 | | the state's image nationwide with a focus on authentic storytelling |
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88 | 98 | | targeting Middle America. The Legislature also finds that the |
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89 | 99 | | entertainment industry is always seeking economical locations that |
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90 | 100 | | can help cut the costs of production. The Legislature further finds |
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91 | 101 | | that the State of Oklahoma, with the appropriate incentive, can |
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92 | 102 | | become a strategic site for live audience episodic television |
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93 | 103 | | production, that serves as strategic retention for the production of |
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94 | 104 | | live audience epsiodic series in Oklahoma. It is therefore the |
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95 | 105 | | intent of the Legislature that Oklahoma provide a pilot program |
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96 | 106 | | incentive specifically for live audience episodic television |
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97 | 107 | | production in this state, carving out a niche in the industry that |
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98 | 108 | | Oklahoma can be known for. |
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99 | 109 | | SECTION 3. NEW LAW A new section of law to be codified |
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100 | 110 | | in the Oklahoma Statutes as Section 3642.3 of Title 68, unless there |
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101 | 111 | | is created a duplication in numbering, reads as follows: |
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102 | 112 | | A. As used in the Bringing Sitcoms Home from Hollywood Pilot |
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103 | 113 | | Program Act, each of the definitions used in Section 3632 of Title |
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135 | 146 | | 1. "Live audience episodic series" means an episodic television |
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136 | 147 | | series that is filmed in front of a live audience, which is not |
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137 | 148 | | child sexual abuse material as defined in subsection A of Section |
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138 | 149 | | 1024.1 of Title 21 of the Oklahoma Statutes or obscene material as |
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139 | 150 | | defined in paragraph 1 of subsection B of Section 1024.1 of Title 21 |
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140 | 151 | | of the Oklahoma Statutes including, but not limited to, live |
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141 | 152 | | audience episodic series to be licensed for exhibition by individual |
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142 | 153 | | television stations, groups of stations, networks, cable television |
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143 | 154 | | stations, or other means or licensed for home viewing markets; |
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144 | 155 | | 2. "Live audience episodic television" means episodic |
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145 | 156 | | television filmed in front of a live audience intended for broadcast |
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146 | 157 | | on network television, cable, and streaming platforms. The audience |
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185 | 197 | | C. The Oklahoma Department of Commerce shall collect separate |
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186 | 198 | | metrics specific to the Bringing Sitcoms Home from Hollywood Pilot |
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187 | 199 | | Program and incentive rebate payments for evaluation of this pilot |
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188 | 200 | | program. |
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189 | 201 | | D. The Oklahoma Department of Commerce and the Oklahoma Tax |
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190 | 202 | | Commission may promulgate rules to implement the provisions of this |
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191 | 203 | | act. |
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192 | 204 | | E. To be eligible for a rebate payment, a production company |
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193 | 205 | | shall: |
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194 | 206 | | 1. Submit an application and documentation to the Oklahoma |
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195 | 207 | | Department of Commerce as required by the Department; |
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196 | 208 | | 2. Have filed any Oklahoma tax returns and tax documents |
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197 | 209 | | required by law; |
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198 | 210 | | 3. Provide evidence that all Oklahoma crew and local vendors |
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199 | 211 | | have been paid and that there are no pending liens against the |
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200 | 212 | | production company in this state; |
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201 | 213 | | 4. Provide evidence of financing for production prior to the |
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202 | 214 | | commencement of principal photography; |
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203 | | - | 5. Provide evidence of a certificate of general liability |
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204 | | - | insurance with a minimum coverage of One Million Dollars |
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205 | | - | ($1,000,000.00) and a workers' compensation policy in compliance |
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206 | | - | with law, which shall include coverage of employer's liability; and |
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207 | | - | 6. Provide evidence, as required by the Department, that the |
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208 | | - | projects pursuant to this act are completed. |
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| 242 | + | 5. Provide evidence of a certificate of general liability |
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| 243 | + | insurance with a minimum coverage of One Million Dollars |
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| 244 | + | ($1,000,000.00) and a workers' compensation policy in compliance |
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| 245 | + | with law, which shall include coverage of employer's liability; and |
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| 246 | + | 6. Provide evidence, as required by the Department, that the |
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| 247 | + | projects pursuant to this act are completed. |
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235 | 248 | | F. A production company shall not be eligible to receive both a |
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236 | 249 | | rebate payment pursuant to the provisions of this act and an |
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237 | 250 | | exemption from sales tax pursuant to the provisions of paragraph 23 |
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238 | 251 | | of Section 1357 of Title 68 of the Oklahoma Statutes. If a |
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239 | 252 | | production company has received the exemption from sales taxes and |
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240 | 253 | | submits a claim for rebate pursuant to the provisions of this act, |
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241 | 254 | | the company shall be required to fully repay the amount of the |
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242 | 255 | | exemption to the Tax Commission. A claim for a rebate shall include |
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243 | 256 | | documentation from the Tax Commission that repayment has been made |
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244 | 257 | | as required in this subsection or shall include an affidavit from |
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245 | 258 | | the production company that the company has not received an |
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246 | 259 | | exemption from sales tax pursuant to the provisions of paragraph 23 |
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247 | 260 | | of Section 1357 of Title 68 of the Oklahoma Statutes. |
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248 | 261 | | G. The Department of Commerce Oklahoma Film and Music Office |
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249 | 262 | | shall approve or disapprove all claims for rebate and shall notify |
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250 | 263 | | the Oklahoma Tax Commission. The Oklahoma Tax Commission shall, |
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251 | 264 | | upon notification of approval from the Oklahoma Film and Music |
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252 | 265 | | Office, issue payment for all approved claims from funds in the |
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285 | 299 | | which the claims are approved by the Oklahoma Film and Music Office. |
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286 | 300 | | If an approved claim is not paid in whole or in part, the unpaid |
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287 | 301 | | claim or unpaid portion may be paid upon the availability of funds. |
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288 | 302 | | SECTION 5. NEW LAW A new section of law to be codified |
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289 | 303 | | in the Oklahoma Statutes as Section 3642.5 of Title 68, unless there |
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290 | 304 | | is created a duplication in numbering, reads as follows: |
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291 | 305 | | A. Subject to the final approval of the eligibility application |
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292 | 306 | | by the Oklahoma Department of Commerce, a requirement that the |
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293 | 307 | | incentive payments made pursuant to the provisions of the act |
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294 | 308 | | achieve the maximum positive impact for the Oklahoma economy and |
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295 | 309 | | subject to the Oklahoma workforce requirements of this title, the |
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296 | 310 | | base incentive amount for a live audience episodic series filmed in |
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297 | 311 | | this state, shall be a minimum of twenty-five percent (25%) of the |
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298 | 312 | | qualified goods and services production expenditure amount with the |
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299 | 313 | | following requirements: |
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300 | 314 | | 1. Live audience episodic television series as defined in this |
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339 | 354 | | B. In addition to the amount authorized by subsection A of this |
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340 | 355 | | section, there may be an additional incentive amount, subject to the |
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341 | 356 | | final approval of the Oklahoma Department of Commerce, in the |
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342 | 357 | | maximum amount of: |
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343 | 358 | | 1. Three percent (3%) of the qualified production expenditure |
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344 | 359 | | amount for projects where at least twenty-five percent (25%) of main |
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345 | 360 | | crew principal photography days are filmed on location, excluding |
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346 | 361 | | soundstage production, in any county of this state if the county has |
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347 | 362 | | a population of less than two hundred fifty thousand (250,000) |
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348 | 363 | | persons according to the Federal Decennial Census or most recent |
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349 | 364 | | population estimate; |
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350 | 365 | | 2. Two percent (2%) of the qualified production expenditure |
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351 | 366 | | amount for projects whose hub location, as determined by the |
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384 | 400 | | 3. Five percent (5%) of the qualified production expenditure |
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385 | 401 | | amount for at least twenty-five percent (25%) of main crew principal |
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386 | 402 | | photography days are filmed at a qualified soundstage facility; |
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387 | 403 | | 4. Two percent (2%) of the qualified production expenditure |
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388 | 404 | | amounts paid to an Oklahoma vendor for the post-production expenses |
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389 | 405 | | of: |
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390 | 406 | | a. music production, recording, mixing, or composition, |
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391 | 407 | | or |
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392 | 408 | | b. licensing of Oklahoma music, with a minimum |
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393 | 409 | | expenditure of Twenty Thousand Dollars ($20,000.00); |
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394 | 410 | | 5. Three percent (3%) of the qualified production expenditure |
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395 | 411 | | amount based on expenditures paid to Oklahoma vendors for post- |
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396 | 412 | | production expenses with a minimum expenditure of three percent (3%) |
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397 | 413 | | of Oklahoma production expenditures. Post-production expenditures |
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398 | 414 | | include, but are not limited to, the following categories: |
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399 | 415 | | a. sound recording or mixing, |
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400 | 416 | | b. color grading, |
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401 | 417 | | c. editorial work, |
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435 | 452 | | j. graphics, including, but not limited to, the GFX |
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436 | 453 | | system. |
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437 | 454 | | C. Notwithstanding any other provisions of this section or the |
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438 | 455 | | provisions of the act to the contrary, in no case shall the total |
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439 | 456 | | incentive payments authorized by this section exceed thirty percent |
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440 | 457 | | (30%) of the otherwise qualified goods and services production |
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441 | 458 | | expenditure amount. The incentive payment amount prescribed by |
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442 | 459 | | subsection A of this section may be used in any combination with the |
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443 | 460 | | additional incentive amounts authorized by subsection B of this |
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444 | 461 | | section, but the combination of the incentive amounts shall not |
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445 | 462 | | exceed thirty percent (30%). |
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446 | 463 | | D. To qualify for the maximum twenty-five percent (25%) base |
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447 | 464 | | incentive payment on qualified goods and services production |
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448 | 465 | | expenditures for Oklahoma in live audience episodic series pursuant |
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449 | 466 | | to subsection A of this section, the project shall utilize the |
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450 | 467 | | services of apprentices according to the following requirements: |
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451 | | - | 1. For a production with Oklahoma expenditures of Seven Million |
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452 | | - | Five Hundred Thousand Dollars ($7,500,000.00) or less, two |
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453 | | - | apprentices; |
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454 | | - | 2. For a production with Oklahoma expenditures greater than |
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455 | | - | Seven Million Five Hundred Thousand Dollars ($7,500,000.00) and |
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456 | | - | Fifteen Million Dollars ($15,000,000.00) or less, four apprentices; |
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| 495 | + | 1. For a production with Oklahoma expenditures of Seven Million |
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| 496 | + | Five Hundred Thousand Dollars ($7,500,000.00) or less, two |
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| 497 | + | apprentices; |
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| 498 | + | 2. For a production with Oklahoma expenditures greater than |
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| 499 | + | Seven Million Five Hundred Thousand Dollars ($7,500,000.00) and |
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| 500 | + | Fifteen Million Dollars ($15,000,000.00) or less, four apprentices; |
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483 | 501 | | 3. For a production with Oklahoma expenditures greater than |
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484 | 502 | | Fifteen Million Dollars ($15,000,000.00) and Twenty-five Million |
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485 | 503 | | Dollars ($25,000,000.00) or less, eight apprentices; and |
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486 | 504 | | 4. For a production with Oklahoma expenditures greater than |
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487 | 505 | | Twenty-five Million Dollars ($25,000,000.00), sixteen apprentices. |
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488 | 506 | | E. All production projects for which any incentive is paid |
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489 | 507 | | pursuant to the provisions of this act shall contain a logo, as |
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490 | 508 | | approved by the Oklahoma Department of Commerce, to be displayed in |
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491 | 509 | | the credits of the finished production for a period of at least five |
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492 | 510 | | (5) seconds or, if the production does not contain credits, the |
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493 | 511 | | Oklahoma Department of Commerce shall obtain a commitment by the |
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494 | 512 | | production company to provide equivalent value as determined by the |
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495 | 513 | | Oklahoma Department of Commerce. |
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496 | 514 | | SECTION 6. NEW LAW A new section of law to be codified |
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497 | 515 | | in the Oklahoma Statutes as Section 3642.6 of Title 68, unless there |
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498 | 516 | | is created a duplication in numbering, reads as follows: |
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499 | 517 | | A. There is hereby created in the State Treasury a revolving |
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500 | 518 | | fund for the Oklahoma Tax Commission to be designated the "Bringing |
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501 | | - | Sitcoms Home from Hollywood Pilot Program Revolving Fund". The fund |
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502 | | - | shall be a continuing fund, not subject to fiscal year limitations, |
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503 | | - | and shall consist of all monies received by the Tax Commission which |
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504 | | - | are specifically required by law to be deposited in the fund, any |
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505 | | - | public or private donations, contributions and gifts received for |
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506 | | - | the benefit of the fund and any amounts appropriated by the Oklahoma |
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| 546 | + | Sitcoms Home from Hollywood Pilot Program Revolving Fund". The fund |
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| 547 | + | shall be a continuing fund, not subject to fiscal year limitations, |
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| 548 | + | and shall consist of all monies received by the Tax Commission which |
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| 549 | + | are specifically required by law to be deposited in the fund, any |
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| 550 | + | public or private donations, contributions and gifts received for |
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| 551 | + | the benefit of the fund and any amounts appropriated by the Oklahoma |
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533 | 552 | | Legislature. All monies accruing to the credit of the fund are |
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534 | 553 | | hereby appropriated and may be budgeted and expended by the Tax |
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535 | 554 | | Commission for the purpose of paying rebates as provided in this |
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536 | 555 | | act. Expenditures from the fund shall be made upon warrants issued |
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537 | 556 | | by the State Treasurer against claims filed as prescribed by law |
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538 | 557 | | with the Director of the Office of Management and Enterprise |
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539 | 558 | | Services for approval and payment. |
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540 | 559 | | B. Funds from the Bringing Sitcoms Home from Hollywood Pilot |
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541 | 560 | | Program Revolving Fund shall only be used for the purpose of live |
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542 | 561 | | audience episodic series filmed in Oklahoma with a live studio |
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543 | 562 | | audience. |
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544 | 563 | | C. Any unencumbered funds remaining in the Bringing Sitcoms |
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580 | | - | Passed the House of Representatives the 25th day of March, 2025. |
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| 597 | + | The provisions of the Bringing Sitcoms Home from Hollywood Pilot |
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| 598 | + | Program Act shall be terminated effective July 1, 2032. |
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| 599 | + | SECTION 8. This act shall become effective November 1, 2025. |
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| 600 | + | |
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| 601 | + | COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated |
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| 602 | + | 03/06/2025 - DO PASS, As Amended and Coauthored. |
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