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Title:
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Adoption of a Resolution Stating the City’s Support of AB 1839 which Expands and Extends the State Film Tax Credit through Fiscal Year 2020/2021.
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City of Culver City, California
Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council adopt a resolution in support of AB 1839,
legislation sponsored by Assemblymembers Raul Bocanegra and Mike Gatto, which
would extend and expand the California Film and Television Tax Credit Program
through Fiscal Year 2020/2021.
BACKGROUND/DISCUSSION:
On December 10, 2012, the City Council adopted its Legislative Advocacy Program
(Program). The Program provides policy statements from which the City Council and
staff can base positions on a variety of issues that are relevant to the City. Consistent
with this Program, staff has been able to draft position letters on Senate and Assembly
bills which are currently making their way through the State Legislature. On July 28,
2014, Council Member Cooper received City Council consensus to bring a resolution
of support for AB 1839 forward to the City Council for consideration.
AB 1839, sponsored by Los Angeles-area Assemblymembers Raul Bocanegra and
Mike Gatto, was introduced in an effort to retain film and television production. AB
1839:
“…Would, as compared to the existing tax credits, extend the scope of
the credits for a qualified motion picture to the applicable percentage of
qualified expenditures up to $100,000,000, would extend the credit to
qualified expenditures for television pilot episodes, qualified
expenditures for qualified visual effects, and qualified expenditures
Meeting Date: 08/11/14 Item Number: C-2
CITY COUNCIL AGENDA ITEM: Adoption of a Resolution Stating the City’s Support
of AB 1839 which Expands and Extends the State Film Tax Credit through Fiscal
Year 2020/2021.
Contact Person/Dept.: Shelly Wolfberg,
Assistant to the City Manager
Phone Number: (310) 253-6000
Fiscal Impact: Yes [ ] No [X] General Fund: Yes [ ] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Agenda and Meetings – City Council (08/06/14)
Department Approval:
Martin R. Cole (08/04/14)
City Attorney Approval:
Carol Schwab (by H. Baker) (08/05/14)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (08/05/14)
City Manager Approval:
John M. Nachbar (08/06/14) City of Culver City, California
Agenda Item Report
relating to music scoring and music track recording by musicians, would
provide limited credit allocation priority for specified television series,
and would determine an applicable percentage of 25% or 20% for
qualified expenditures for television series relocating to California based
on the number of years the series has received the credit since
relocation to California and where in California photography occurs.”
Over the past several months, staff has been tracking AB 1839 (among other bills) and
has submitted letters of support signed by the Mayor, the latest of which is found in
Attachment 1. Support for AB 1839 is consistent with the City Council’s adopted policy
statement as found in the Program. The following policy statements pertain to AB
1839:
? Support legislative efforts to keep film, television, and commercial
advertisement production and post-production in the State of
California, especially in Culver City.
? Support the California Legislature and the federal government in
their efforts at the federal level to maintain film and television
production in the United States.
Because the entertainment industry is valuable to the Culver City community as many
residents work at Culver City studios, including Sony Pictures Entertainment (SPE),
staff has coordinated its AB 1839 advocacy efforts with staff at SPE. Further, Culver
City is also home to many businesses that provide services to the film, television, and
commercial production industry across the State.
A vibrant, successful entertainment business sector is critical to the City’s livelihood
and economic vitality. Our community is known as “The Heart of Screenland,” and to
this end, it is prudent to support legislative efforts to keep film, television, and
commercial advertisement production and post-production in Culver City and the State
of California. In response to City Council’s request on July 28, 2014, staff has drafted
the attached proposed resolution in support of AB 1839 for City Council consideration
(Attachment 2).
FISCAL ANALYSIS:
There is no fiscal impact to consider and adopt the proposed resolution. In the case
AB 1839 becomes law, there would be an impact to the State’s finances. Such impact
may cause a resulting impact to the City’s finances, the nature (positive/negative) and
amount of which are difficult to estimate at this time.
City of Culver City, California
Agenda Item Report
ATTACHMENTS:
1. Letter of Support - July 31, 2014
2. Proposed Resolution
MOTIONS:
That the City Council:
Adopt a resolution in support of AB 1839.
MEETING DATE: August 11, 2014
AGENDA ITEM: (If Desired) Adoption of a Resolution of the City Council
Stating the City’s Support of AB 1839 which Expands
and Extends the State Film Tax Credit through Fiscal
Year 2020/2021 .
ATTACHMENTS
Pages
Resolution 1-3
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