TO: FILM & MUSIC INDUSTRY
FR: OKLAHOMA FILM SOCIETY

Below are some important "Legislation Talking Points" that could be helpful for those attending lobbying efforts at Oklahoma's State Capital in Oklahoma City April 26, 2005. Following these points is information shared in an earlier posting. Please, read all of the following is this is your first receipt of this information. Finally, please pass this information along to all who could support such a great endeavor.

Please join efforts for door-to-door lobbying at:
The Oklahoma State Capitol
Tuesday, April 26th
Convene for prior briefing – 2:00 p.m.
Conference Room 412C on the 4th Floor

LEGISLATION TALKING POINTS

In 2004, industry spent a total of $6 million in state translating to an economic impact of $10.3 based on a multiplier of 1.72, the result of a recent OU Price School of Business economic impact study. That is an almost 2 to 1 ROI for the entertainment industry.

Quantitative Impact:

· Direct employment of those involved in creative, technical fields

· Indirect employment of our citizens created as a result of goods & services purchased or rented

· Induced employment, i.e., production crew buys groceries, etc.

Qualitative Impact
· Development of valuable skills and education opportunities

· Builds pride in our state – the interest generated by even one film cannot be underestimated.

· Wards off “brain drain”, i.e. having our best and brightest leave the state for greener pastures

· Supports a “clean” industry

· Enhances tourism opportunities

IMPORTANCE OF FUNDING CURRENT LEGISLATION

· We have several real champions in the legislature
(Senator Debbie Leftwich, Senator Jim Wilson, Rep. Susan Winchester, Representative Don Armes, the Lt. Governor)

· Our tax credit bills are designed to support Oklahoma film and music companies. The credits are non-assignable and non-transferable. This means that profits from these companies will stay in Oklahoma. By supporting Oklahoma companies we are establishing a foundation for a growing industry within our borders which will subsequently grow our economy.

· The Oklahoma Film Enhancement Rebate Program (Compete With

Canada Act) passed in 2001. This was a wonderful, cutting edge piece of legislation and it put Oklahoma on the map. However, it has not been funded adequately.

· We endeavor to give “Compete With Canada” teeth in the form of a replenishment mechanism. Right now the fund is on empty. It is critical that this fund be replenished on an annual basis to compete, not only with Canada, but other states in what has become a highly competitive and highly dynamic environment.

· Other states see the value that the industry brings to their economies. So must we before it’s too late. With over 16 states offering legislated incentives for the film and music industries, and that number continually on the rise, we’re facing a highly competitive climate..

· Louisiana Example: Between 1992 and 2000, film production in Louisiana was moribund, with production expenditures in the state totaling just $44 million, an average of $5.5 million per year. State lawmakers then crafted an incentive program that already has come to serve as a model for other states interested in attracting or retaining film projects." "Louisiana State officials are enormously pleased with the effects of the incentive package. In the four years following its passage, they estimate that in-state visual media production outlays have soared to $248 million, or $62 million per year on average. This represents more than an eleven-fold increase over average annual production expenditures for the eight years prior to

enactment of the legislation."

FILM/MUSIC LEGISLATION SUMMARY

House Bill 1716 – Authored by Rep. Susan Winchester, 1716 establishes an income tax credit equal to 25% of profits from investment in Oklahoma in the production of a film or music project or company when profits are reinvested in the production of another Oklahoma film or music project or development of an Oklahoma company. Credit becomes available January 1, 2006 and may not exceed the taxpayer’s tax liability.

House Bill 1756 – Authored by Rep. Doug Miller, HB 1756 adds commercials as a type of production eligible for the rebate, and require proof of a certificate of completion bond and liability insurance in order to qualify for the rebate.

The Oklahoma Film Enhancement Rebate Program is designed to give companies filming in Oklahoma a 15% rebate on Oklahoma expenditures incurred during the course of filming. To qualify, a film must have a minimum budget of $1 million. Payouts made during any one fiscal year may not exceed $2 million.

Senate Bill 877 – Authored by Senator Debbe Leftwich, SB 877 is strictly amendatory in nature. It adds the development of film and music production facilities to the list of eligible facilities for tax credits under the existing Oklahoma Tourism Development Act. The legislation also offers incentives for the development of Oklahoma companies whose profits will be re-channeled into the state.

Note: If you would like to track the progress of these bills, go to the State of Oklahoma House/Senate website.

The Oklahoma Film Society has offered its online message board for discussion about the legislation above. To participate, please visit their board THE CAN by looking them up on Google, as no link could be posted here. To post, users will need to register. Registration on THE CAN is free and open to the General Public. There are no Ads or SPAM associated with this completely free service, compliments of the Oklahoma Film Society.