California Code of Regulations › Title 10 - Investment › Chapter 7.75 - California Film Commission › Article 4 - California Soundstage Filming Tax Credit Program › Section 5536 - Approved Applicant Responsibilities - Phase B

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A Phase
				B applicant issued a CAL, Form SD (August 12, 2022), hereby incorporated by
				reference, following approval for Phases A and B by the CFC shall be required
				to comply with the following during the production period:
(1) Principal photography in California shall
				commence no later than one hundred eighty (180) calendar days after the CAL is
				issued. Qualified motion pictures with qualified expenditures of at least one
				hundred million dollars ($100,000,000) must begin principal photography (as
				defined in section
				5520(u)) no later
				than two hundred and forty (240) calendar days after CAL issuance. If the
				production does not begin principal photography prior to the 180- or 240-day
				deadline, the tax credit allocation shall be revoked, unless a Force Majeure
				event has occurred which directly prevented the production from commencing
				within the deadline, as described in sections
				17053.98(b)(18)(B)(iv)
				and
				23698(b)(18)(B)(iv)
				of the Revenue and Taxation Code. With submission of documentation verifying
				such event, the CFC shall grant an extension. If a production implements a
				hiatus during the principal photography period, any hiatus period(s) may be no
				longer than one hundred twenty (120) calendar days in aggregate for the entire
				duration of the production.
(2) As
				soon as feasible, but not less than four (4) weeks prior to the start of
				principal photography, the production accountant is required to attend an
				orientation meeting with the Director of the CFC or their designee, along with
				any or all of the following staff members: a primary producer, production
				manager or other appropriate personnel as determined by the applicant.
				Applicants and staff members shall not be required to attend more than one (1)
				orientation meeting for a motion picture in the Program.
(3) On the first day of principal photography
				and after a hiatus period, if applicable, submit by email to the CFC the daily
				call sheet, signed by the production manager or equivalent position, in PDF or
				equivalent non-proprietary document format.
(4) Each week or as available, submit by
				email to the CFC the final production reports for each day of principal
				photography, signed by the Unit Production Manager or equivalent position, in
				PDF or equivalent non-proprietary document format.
(5) If applicable, submit an email
				notification to the CFC indicating any significant changes to the project
				including anticipated changes in the estimated qualified expenditures, change
				of start date, shooting location, number of television episodes ordered, title
				change of project, financing, key personnel or any other factors that have
				significantly changed since issuance of the CAL.
(6) Participation in career-based learning
				and training programs and public service opportunities approved by the CFC in
				consultation with the California Department of Education (CDE) and/or
				California Community College Chancellor's Office (CCCCO) aimed at exposing
				career-based learning program, high school, community college, and California
				State University students to careers in the entertainment industry. To
				demonstrate compliance with this requirement the applicant must submit the
				applicable form for Soundstage Career Readiness verification, Form SCR1, SCR2,
				SCR3, SCR4, or SCR5 (March 11, 2022), hereby incorporated by reference, to the
				CFC as soon as the career-based learning and training program or public service
				opportunity has concluded. To meet the requirements of this section, the
				applicant may do any of the following:
(A)
				Provide to students enrolled within the past twelve months in an accredited
				California high school, community college, California State University, or
				career-based learning program three (3) paid internship positions for a minimum
				of one hundred (100) hours each or a combination of internships or internship
				with a minimum of one hundred (100) hours per student and three hundred (300)
				hours in total. Interns must be 18 years of age or older. Internship experience
				must include working with professionals in the film industry and hands-on work
				assignments; or
(B) Provide to
				students enrolled within the past twelve months in an accredited California
				high school, community college, California State University, or career-based
				learning program classroom workshops, panels, or demonstrations on aspects of
				the film industry, which may include but is not limited to set operations,
				post-production and specific technical crafts conducted by entertainment
				industry professionals; or
(C)
				Provide to students enrolled within the past twelve months in an accredited
				California high school, community college, California State University, or
				career-based learning program a minimum of eight (8) hours of professional
				skills tours, which may include visits to observe set operations, set
				construction, wardrobe department, art department and editorial department;
				or
(D) Provide a minimum of eight
				(8) hours of continuing education for educators and/or faculty to observe the
				set operations, post-production, and other specialized departments in the film
				industry; or
(E) Make a financial
				contribution to a specific local or state educational agency or higher
				education institution specializing in arts, media, and entertainment
				career-oriented programs. The contribution shall be based on 0.25 percent of
				the estimated tax credit reservation with a minimum financial contribution of
				$5,000 and a maximum required financial contribution of $12,000. (Note: An
				applicant may contribute an amount in excess of the maximum); or
(F) Provide a learning opportunity or
				financial contribution of equal time or value through other arts, media, and
				entertainment programs, workforce programs, etc., which are not affiliated with
				CCCCO or CDE, but which have been proposed to and approved by the CFC, on a
				case by case basis, as having been demonstrated by the applicant to be a
				learning opportunity or financial contribution of equal time or value to the
				other options in this paragraph.
(7) A qualified motion picture shall make a
				contribution to the Career Pathways Training Program as specified in Revenue
				and Taxation Code sections
				17053.98(e),
				17053.98(k)(10)(B),
				23698(e),
				and
				23698(k)(10)(B).
(A) The contribution shall be based on 0.5
				percent of the estimated tax credit reservation as stated on the CAL.
(B) The contribution shall be submitted to
				the CFC with the career pathways program form, Form SCPP (July 28, 2023),
				hereby incorporated by reference, no later than thirty (30) business days after
				the CAL date; failure to submit the contribution within this time frame will
				result in revocation of the CAL.
1. An
				applicant facing a technical or funds-related barrier to meeting the deadline
				may request an extension of up to ten (10) business days and the CFC will grant
				the extension if the applicant requests such an extension prior to the
				expiration of the timeframe specified in subparagraph (B) above and provides
				supporting documentation.
(C) The contribution is refundable if the
				project does not receive a tax credit certificate, Form SM (August 12, 2022),
				hereby incorporated by reference. A portion may also be refundable if the tax
				credit amount is significantly reduced due to reasonable cause, as defined in
				section 5520(y).
(D) A qualified motion picture that receives
				an increase in allocated tax credits, causing an additional contribution sum to
				become due, shall make a payment of that additional sum within thirty (30)
				business days of notification of that increase in allocation.
(E) The contribution must be made by business
				or personal check. No other payment options will be accepted.