Portantino Bill Ensuring California Remains a Global Leader in the Entertainment Industry Clears Senate Governance and Finance Committee
For Immediate Release: May 7, 2021
Contact: Lerna Shirinian, (818) 807-6091
Portantino Bill Ensuring California Remains a Global Leader in the Entertainment Industry Clears Senate Governance and Finance Committee
Sacramento, California – Senate Bill 485, a measure introduced by Senator Anthony J. Portantino (D – La Canada Flintridge) that seeks to ensure California remains a global leader in entertainment production, cleared the Senate Governance and Finance Committee today.
“California’s successful film tax credits have moved dozens of productions back to Southern California following a decade-long decline in Hollywood,” stated Senator Portantino. “Now it is time to turn our attention to the creation of studios and filming locations. By investing in the expansion and modernization of studio infrastructure, SB 485 will create thousands of good-paying, middle class jobs and ensure that another generation of entertainment careers will be created in California.”
Since inception, the film tax credit programs have already generated $17.9 billion in production spending within California, despite just $2.4 billion in incentives from the state. Construction of soundstages in California have not kept pace with the recent growth in production of film, scripted television and streaming content. This has resulted in more out of state production.
Current film tax credits do not incentivize studio construction and renovation projects. SB 485 will be a catalyst for new infrastructure and sustained job creation. For every $200 million of sound stage construction, California stands to benefit from 2,225 jobs, $164 million in wages for workers, and more than $374 million in economic impact. It is also projected that $200 million in soundstage investment in the first five years of operation will generate almost 12,500 production related jobs and $1.2 billion in wages for California workers. The total production impact would be $4.3 billion in economic activity in the state.
SB 485 is formulated specifically for studio construction and renovation projects certified by the California Film Commission. In order to qualify for the credit, eligible projects must be built in-state, meet an appropriate cost threshold, and are subject to prevailing wage and skilled-and-trained workforce requirements.
In order to ensure that productions that receive credits continue to create film and television jobs here in California, at least 50% of principal shooting days must take place in state on the eligible project. Productions that meet the standards of SB 485 in the first five years after certification by the Film Commission will continue to earn credits under the new program, as long as the productions remain in California and meet the program criteria. The bill also requires that the new production facilities are continuously operated, maintained, and repaired by a skilled and trained workforce, as defined under the Public Contract Code. Additionally, any qualified motion picture must pay one percent of the approved credit amount into the Career Pathways Training Program, thus training the next generation of California film and television workers.
“Entertainment is a core industry of California - a major employer of high-wage jobs and the sharks are circling,” stated Robbie Hunter, President of the State Building and Construction Trades Council. “New York and Georgia are offering incentives to lure this industry to ‘Hollywood East.’ Not on our watch. SB 485 will allow the California entertainment industry to continue to be the global leader for generations to come.”
SB 485 is sponsored by the State Building and Construction Trades Council of California. The measure has received support from the following: California Labor Federation; California IATSE Council, Local 16 – Stagehands, San Francisco; Local 44 – Affiliated Property Craftspersons; Local 80 – Motion Picture Studio Grips, Crafts Service, First Aid, Marine Department & Warehouse Workers; Local 122 – San Diego Stagehands; Local 600 – International Cinematographers Guild; Local 695 – Production Sound/Video Assist Technicians, Television Engineers & Studio Projectionists; Local 706 – Make-Up Artists & Hair Stylists Guild; Local 728 – Studio Electrical Lighting Technicians; Local 729 – Motion Picture Set Painters & Sign Writers; Local 800 – Art Directors Guild; Local 839 – The Animation Guild; Local 871 – Script Supervisors/Continuity, Coordinators, Accountants & Allied Production Specialists Guild; Local 884 – Studio Teachers & Welfare Workers; Local 892 – Costume Designers Guild; California State Council of Laborers; Entertainment Union Coalition; SAG AFTRA; Teamsters Local 399.
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