A BILL TO BE ENTITLED AN ACT TO FACILITATE ECONOMIC DEVELOPMENT WITHIN THE STATE.
Senate committee substitute makes the following changes to the 2nd edition:
Adds new mandatory contract term, which must be included in any contract entered into under GS 143B-431A, concerning public-private partnerships, requiring entities that receive gifts, contributions, items, or services for which fair market value exceeds $1,000 and fair market value was not paid, to publish within seven days of receiving the item, the entity it came from, the fair market value and a description of the item, along with the date and amount of any award previously given to the entity.
Enacts new GS 143B-437.02A, titled The Film and Entertainment Grant Fund, which creates in the Department of Commerce this special non-reverting fund to be used to encourage and develop the tv and film-making industry in North Carolina. Sets out five provisions that are to be included in any rules regarding the awarding of grants, including certain requirements on receiving grants in relation to total qualifying expenses and that the funds are not provided to more than one production company for a single production. Sets out seven types of productions that may not receive a grant. Gives priority to productions reasonably anticipated to maximize the benefit to the state.
Sets out nine terms and definitions to be used in the section, including highly compensated individual and qualifying expenses.
Establishes procedures for a production company to apply for a grant of funds, which includes an application, under oath, to the Secretary of Commerce (Secretary) and an application fee of $1,000. Directs the Secretary to work with the NC Film Office to adopt rules and processes for the verification of qualifying expenses of production companies. Provides that no grant funds can be released before qualifying expenses are verified and substantiated. Sets out three requirements for the process of substantiation, including requiring the production company to submit all qualifying expenses with documentation on net expenditures for equipment and other personal property and a compliance audit at the production company's expense.
Requires the Department of Commerce to report four categories of information to the Department of Revenue, which in turn the Department of Revenue must include in the economic incentives report. This information includes the location of sites used in a production for which a grant was awarded and the total cost of the grants awarded.
Also requires a production company to notify the Division of Tourism, Film, and Sports Development of their intent to apply.
Appropriates $10 million from the Repairs and Renovations Reserve to the Film and Entertainment Grant Fund, nonrecurring, for the 2014-15 fiscal year and $10 million from the Savings Reserve to the Film and Entertainment Grant Fund, also nonrecurring, for the 2014-15 fiscal year.
Provisions on the fund are effective January 1, 2015, expiring July 1, 2020. Provides that the Secretary of Commerce cannot award a grant for any qualifying expense for which a taxpayer received a tax credit under GS 105-130.47 or 105-151.29.
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