Gov. Gray Davis (D-Calif.) has signed a pair of bills, giving the go-ahead to the enactment of two programs—Film California First, and the State Theatrical Arts Resources (STAR) Partnership—which are designed to help California combat runaway production to other states and countries.
With annual funding of $15 million for each of the next three fiscal years, the $45 million Film California First program will reimburse certain film-related costs incurred by a qualified production company when shooting on public land. The program is expected to take effect in winter 2000. An exact date had not yet been set at press time.
The program defines film costs as "the usual and customary charges by a public agency" in the production of a project such as a feature, TV program or commercial. The reimbursement program will be limited to the following costs incurred within the State of California:
• State employee costs, including California Highway Patrol officers and state park rangers.
• Federal employee costs.
• Federal, University of California and California State University permits and property fees.
• Local public entity employee costs for fire and non-police public safety.
• Local property use fees.
• And costs for rental equipment mandated and owned by a public agency.
A production company is eligible to participate in the Film California First program upon obtaining a film permit issued by a federal, state or local public agency. Qualifying production companies must complete a Film California First application and have it on file with the California Film Commission (CFC) before submitting an invoice for reimbursement. The CFC administers Film California First, with assistance from the California Trade and Commerce Agency’s Office of Economic Development. The program will reimburse actual costs incurred by a production company and plans to pay eligible invoices within 45 days of receipt. Program guidelines are currently being prepared by the CFC, which will have staffers available to answer questions and facilitate production company involvement.
STAR SYSTEM
The STAR program will make designated state-owned surplus property and unused real estate assets available to producers for a nominal contract fee. The CFC has traditionally provided and continues to offer state-owned property free of permit charges and location fees. But STAR would open up other properties that haven’t been readily available for lensing, such as certain warehouses; hospitals; large, often unoccupied structures; and possibly even prisons and state fair grounds.
"The intent is to proactively let the production community know about many more state-owned locations, adding to the inventory we already provide," explained CFC director Karen Constine. "Staff will be hired to develop a list of the properties, to continually revise that list, to market the properties and to facilitate the contracting for them."
The CFC is in the process of formulating guidelines for the STAR program, which will take effect after Film California First is launched. The enabling legislation for STAR calls for the program to start in early 2001.
Per the 2000-’01 State of California budget, the CFC is receiving an increase of $1.4 million in funding, bringing its annual budget to around $3.5 million. Part of that additional $1.4 million will go towards the CFC administering and bringing on staffers for the Film California First and STAR programs.
Constine characterized both programs as representing "significant steps in the creation of new incentives for filming in California. We plan to implement these programs as quickly as possible."
The pending implementation of both programs is welcome news for a state, which particularly in the Southland, has seen runaway commercial production escalate, recently fueled by the actors’ strike against the advertising industry. Spot location shoots have fled Los Angeles for other U.S. cities and foreign countries, negatively impacting Southern California’s economy. And with negotiations between the actors’ unions and the Joint Policy Committee breaking off last week (see separate story, p. 1), there’s no end in sight for the spot strike.
Even prior to the strike, which began May 1, runaway production had emerged as a serious problem. The Directors Guild of America (DGA) and Film U.S., an organization consisting of 196 local and state film commissioners, have expressed hope that programs such as Film California First and STAR will prompt other states and even the federal government to follow suit in some form to help address the runaway issue (SHOOT, 5/26, p. 4). California’s anti-runaway programs have also received endorsements from numerous industry groups, including the Association of Independent Commercial Producers and the Motion Picture Association of America.
