Amend the bill by striking out all of the emergency preamble (page 1, lines 1 to 14 in L.D.) and inserting the following:
‘Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, this legislation fosters economic growth in the State by providing incentives to motion picture, musical and digital media production companies; and
Whereas, motion picture and musical production is especially amenable to incentives because it is highly mobile, environmentally safe, capital and labor intensive and effective in promoting tourism; and
Whereas, it is important that these incentives be made available quickly to encourage motion picture and musical production companies to come to Maine as soon as possible, thus benefiting the economy and people of Maine; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,’
Amend the bill by striking out everything after the enacting clause and before the emergency clause and inserting the following:
‘Sec. 1. 5 MRSA §13090-L, as amended by PL 2011, c. 285, §1, is repealed.
Sec. 2. 5 MRSA §13090-M, sub-§1, ¶¶B and E, as enacted by PL 2011, c. 372, §1, are amended to read:
B. "Digital media project" has the same meaning as in section 13090-L, subsection 2-A, paragraph A means visual and audio content on an electronic, digital medium and created, referred to and distributed electronically. "Digital media project" includes publicly accessible websites, computer multimedia, video and computer games and digital video discs.
E.
"Visual media production" has the same meaning as in section 13090-L, subsection 2-A, paragraph D. means a single-medium or multimedia feature film, television show or series, video, digital media project or photographic project intended for a local, regional, national or international audience and fixed on film, videotape, computer disk, laser disc or other delivery medium that can be viewed or reproduced and that is exhibited in theaters or by individual television stations or groups of stations, television networks or cable television stations or via other means or licensed for home viewing or use. "Visual media production" does not include:
(1) A news, current events or public programming show or a program that includes weather or market reports;
(3) A sports event or activity;
(4) A gala presentation or awards show;
(5) A finished production that solicits funds; or
(6) A production for which records are required to be maintained by 18 United States Code, Section 2257.
Sec. 3. 5 MRSA §13090-M, sub-§4, ¶E, as enacted by PL 2011, c. 372, §1, is amended to read:
E. A signed agreement with the department provides that the project or production will not be the basis for a claim for an income tax credit under Title 36, section 5219-Y or reimbursement rebate under Title 36, chapter 919-A section 13090-N.
Sec. 4. 5 MRSA §13090-N is enacted to read:
Sec. 5. 10 MRSA §1100-T, sub-§2, ¶B, as amended by PL 2009, c. 470, §2, is further amended to read:
B. The Maine business must be a manufacturer; must provide a product or service that is sold or rendered, or is projected to be sold or rendered, predominantly outside of the State; must be engaged in the development or application of advanced technologies; must be certified as a visual media production company under Title 5, section 13090-L; or must bring capital into the State, as determined by the authority.
Sec. 6. 10 MRSA §1100-T, sub-§2-A, ¶B, as amended by PL 2009, c. 470, §3, is further amended to read:
B.
As used in this subsection, unless the context otherwise indicates, an "eligible business" means a business located in the State that:
(2) Is engaged in the development or application of advanced technologies;
(3) Provides a service that is sold or rendered, or is projected to be sold or rendered, predominantly outside of the State; or
(4) Brings capital into the State, as determined by the authority ; or .
(5) Is certified as a visual media production company under Title 5, section 13090-L.
Sec. 7. 10 MRSA §1100-T, sub-§2-C, ¶B, as enacted by PL 2011, c. 454, §6, is amended to read:
B.
As used in this subsection, unless the context otherwise indicates, "eligible business" means a business located in the State that:
(2) Is engaged in the development or application of advanced technologies;
(3) Provides a service that is sold or rendered, or is projected to be sold or rendered, predominantly outside of the State; or
(4) Brings capital into the State, as determined by the authority ; or .
(5) Is certified as a visual media production company under Title 5, section 13090-L.
Sec. 8. 36 MRSA §191, sub-§2, ¶MM, as amended by PL 2009, c. 652, Pt. A, §51, is further amended to read:
MM. The disclosure to an authorized representative of the Department of Economic and Community Development of information required for the administration of the visual media production credit under section 5219-Y Motion Picture, Musical and Digital Media Incentive Program under Title 5, section 13090-N, the employment tax increment financing program under chapter 917 , the visual media production reimbursement program under chapter 919-A or the Pine Tree Development Zone program under Title 30-A, chapter 206, subchapter 4;
Sec. 9. 36 MRSA §5219-Y, as amended by PL 2011, c. 240, §37, is repealed.
Sec. 10. 36 MRSA c. 919-A, as amended, is repealed.
Sec. 11. Application. A visual media production company may claim a visual media production credit and reimbursement under the Maine Revised Statutes, former Title 36, section 5219-Y and former Title 36, chapter 919-A after the effective date of this Act if the Department of Economic and Community Development issued a visual media production certificate to the visual media production company prior to the effective date of this Act.
Sec. 12. Appropriations and allocations. The following appropriations and allocations are made.
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF
Motion Picture, Musical and Digital Media Incentive Program Fund N132
Initiative: Allocates funds for rebates to eligible motion picture production companies.
| OTHER SPECIAL REVENUE FUNDS |
2011-12 |
2012-13 |
|
All Other
|
$0 |
$25,000,000 |
|
 |
|
| OTHER SPECIAL REVENUE FUNDS TOTAL |
$0 |
$25,000,000 |
’
summary
This amendment replaces the bill. It creates the Motion Picture, Musical and Digital Media Incentive Program, which allows for a rebate based on qualifying production expenditures for a motion picture production company that spends at least $75,000 in qualifying production expenditures or a musical, theatrical or sound production company or digital interactive media production company that spends at least $15,000 in qualifying production expenditures. In addition, in order to qualify for the rebate, the company must:
1. Employ below-the-line personnel, at least 50% of whom are residents of this State, and, beginning September 1, 2013, employ below-the-line personnel, at least 65% of whom are residents of this State;
2. Contract with a travel company located in this State;
3. Contract with a payroll processing company licensed by this State pursuant to the Maine Revised Statutes, Title 10, chapter 222 and located in this State;
4. Use a financial institution located and authorized to do business in this State;
5. Contract with a casting company located in this State; and
6. Agree to display in its production a single card credit or state logo, as prescribed by the Department of Economic and Community Development, Office of Tourism, stating that the production was filmed, produced or created in this State with the cooperation of the office.
The amendment establishes application requirements for initial and final state certification and standards for eligibility for the rebate. It allows for a rebate of 25% of all qualifying production expenditures, subject to the following limitations: from May 1, 2012 to June 30, 2013, the total amount of rebates authorized may not exceed $25,000,000 in the aggregate and the total amount of rebates authorized in any subsequent fiscal year may not exceed $50,000,000 in the aggregate.
It provides that a company that receives a rebate under the program may not claim any other state economic development incentive, tax reimbursement or exemption in the same fiscal year.
The amendment also repeals the certified visual media production credit and visual media production reimbursement. It requires that, beginning January 15, 2013, and every 2 years thereafter, the office shall review all aspects of the program, including the level of participation, the amount rebated from the Motion Picture, Musical and Digital Media Incentive Program Fund and the amount retained by the office, and submit a report to the joint standing committee of the Legislature having jurisdiction over labor, commerce, research and economic development matters. The report must include any recommendations of the office for improvements or changes to the program. The amendment authorizes the committee to report out a bill to implement the recommendations in the report.
The amendment requires the State Controller to transfer $25,000,000 by January 1, 2013 and $50,000,000 annually thereafter from General Fund undedicated revenue to be used to provide rebates under the program.
The amendment also adds an appropriations and allocations section.
FISCAL NOTE REQUIRED
(See attached)