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§ 5536. Approved Applicant Responsibilities -- Phase B.

10 CA ADC § 5536Barclays Official California Code of RegulationsEffective: February 8, 2024

Barclays California Code of Regulations
Title 10. Investment
Chapter 7.75. California Film Commission
Article 4. California Soundstage Filming Tax Credit Program
Effective: February 8, 2024
10 CCR § 5536
§ 5536. Approved Applicant Responsibilities -- Phase B.
(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.

Credits

Note: Authority cited: Sections 17053.98(k)(10) and 23698(k)(10), Revenue and Taxation Code; and Section 11152, Government Code. Reference: Sections 17053.95(e), 17053.98(k)(1), 17053.98(k)(4), 17053.98(k)(10), 17053.98(b), 17053.98(e), 23695(e), 23698(k)(1), 23698(k)(4), 23698(k)(10), 23698(b) and 23695(e), Revenue and Taxation Code; and Section 14998.1, Government Code.
History
1. New section filed 4-11-2022 as an emergency; operative 4-11-2022 (Register 2022, No. 15). A Certificate of Compliance must be transmitted to OAL by 10-10-2022 or emergency language will be repealed by operation of law on the following day.
2. New section refiled with amendments to section heading, section and Note 10-3-2022 as an emergency; operative 10-11-2022 (Register 2022, No. 40). A Certificate of Compliance must be transmitted to OAL by 1-9-2023 or emergency language will be repealed by operation of law on the following day.
3. Refiling of 10-3-2022 emergency on 1-9-2023; operative 1-10-2023 (Register 2023, No. 2). A Certificate of Compliance must be transmitted to OAL by 4-10-2023 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 10-3-2022 order, including amendment of subsection (a)(6)(F) and Note, transmitted to OAL 1-3-2023 and filed 2-15-2023; amendments effective 2-15-2023 pursuant to Government Code section 11343.4(b)(3) (Register 2023, No. 7).
5. Amendment of section and Note filed 8-18-2023 as an emergency; operative 8-18-2023 (Register 2023, No. 33). A Certificate of Compliance must be transmitted to OAL by 2-14-2024 or emergency language will be repealed by operation of law on the following day.
6. Certificate of Compliance as to 8-18-2023 order, including amendment of subsections (a)(1), (a)(6), (a)(7)(B), (a)(7)(B)1. and (a)(7)(C) transmitted to OAL 12-26-2024 and filed 2-8-2024; amendments effective 2-8-2024 pursuant to Government Code section 11343.4(b)(3) (Register 2024, No. 6).
This database is current through 4/5/24 Register 2024, No. 14.
Cal. Admin. Code tit. 10, § 5536, 10 CA ADC § 5536
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