California Film Commission Film California First Program Overview and Guidelines Program Guidelines Revised 10/2002 Table of Contents Forward Page Introduction by Governor Gray Davis 3 About the California Film Commission 4 The Film California First (FCF) Program 5 What is the FCF Program and Fund? 5 Why was the Program created? 5 Who is eligible to participate? 5 What Film Costs are reimbursable? 5 Film Costs reimbursement categories 6 Personnel reimbursement 6 Film Permit Fee reimbursement 7 Public Property Use Fee reimbursement 7 Public Equipment Fee reimbursement 7 What are the Program’s Restrictions? 7 What Film Costs are not eligible? 8 What production types are not eligible? 8 The FCF Reimbursement Process 9 When and how does a Production Company apply for the FCF Program? 9 What supporting documentation needs to be submitted? 9 When will a Production Company receive reimbursement? 10 How can an additional reimbursement be requested for a production? 10 How to contact the FCF Program 11 Other Information 11 Summary of eligible costs 12 FCF document checklist 13 Glossary 14 2About the California Film Commission Financial Incentives • Film California First (FCF) --A multi-million dollar incentive program that provides up to $300,000 per project in rebates to qualified production companies filming in California. The only incentive program of its kind, FCF reimburses the cost of public labor and greatly reduces location site fees when filming on public property. • The State Theatrical Arts Resources (STAR) Partnership --A unique program that offers filmmakers access to unused State properties (e.g., health facilities, vacant office structures, prisons, etc.) for a nominal fee or at no charge, thus helping production companies to substantially cut below-the-line expenses. Tax Incentives • No state hotel tax on occupancy. Most cities or counties that impose a local hotel tax have a tax exemption for occupancies in excess of 30 days. • No sales or use tax on production or postproduction services on motion pictures or TV films. No sales or use tax on services including writing, acting, directing, casting and storyboarding. • Five percent sales tax exemption on the purchase or lease of post-production equipment for qualified persons. Services Provided • Free permits for California State properties. • No location fees for California State properties. • One-stop film office for California State properties. • On site location library and CinemaScout®, (www.cinemascout.com), a web-based location finder for sites throughout California. • On site California Highway Patrol (CHP) Film Liaison available to assist with filming on State freeways and highways. This liaison also arranges CHP officers to monitor film shoots. • On site California State Fire Marshal available to provide advice and approval for pyrotechnics and other special effect permits for State properties. • Coordination with more than 55 in-state film commissions. CFC will fax your customized location requests to designated film commission offices. • Production and troubleshooting assistance. We are very excited to bring you the FCF Program. The Technology, Trade and Commerce Agency (TTCA) will also provide administrative assistance for the FCF Program. The CFC is a Division of TTCA. FCF staff is available to answer your questions at (323) 860-2960 x199 or visit the FCF Program website at www.filmcafirst.com. For more information on the CFC please visit www.film.ca.gov. 4The Film California First (FCF) Program These comprehensive guidelines have been prepared to assist Production Companies to utilize the Film California First (FCF) Program.1 Capitalized words and phrases are defined in the glossary of words used by the FCF Program, located at the end of these guidelines. What is the FCF Program and Fund? The FCF Program will reimburse certain Film Costs incurred by qualified Production Companies when filming on public property in California. Initiated by Governor Gray Davis, the multi-million program was approved by the Legislature in June 2000 and commenced on January 1, 2001. Please note the following information: ! Reimbursements from the Fund shall be on a first-come, first-served basis. ! The available fund fluctuates annually, based on the State of California’s budget provisions. Contact the CFC for budget provisions for the given fiscal year. Why was the Program created? The FCF Program increases California's competitive edge in attracting and retaining film projects. Qualified Production Companies will realize cost savings through the Program's various reimbursement categories when filming in California. Who is eligible to participate? In most cases, a Production Company for motion picture, television, commercial or still photography is eligible to participate in the FCF Program once the company has obtained a film permit issued by the Public Agency in California. Additionally, a Production Company must complete Principal Photography on the production before applying to the FCF Program. What Film Costs are reimbursable? Only eligible Film Costs incurred after January 1, 2001. In general, FCF “Film Costs2” means the usual and customary charges by a Public Agency in connection with the production of a motion picture, television, commercial, or still photography, including preparation and strike, limited to the following costs incurred within the State of California: 1 California Government Code §§ 15363.70-15363.75 govern the Film California First Program. In the event of a conflict between these guidelines and the provisions of the Government Code, the Government Code prevails. 2In the FCF Program, there are caps and limits on film costs for local police/sheriffs, Film Permit Fee, Public Property Use Fee and Public Equipment Fee, depending on the Public Agency involved. See Eligible Costs. No more than $300,000 shall be reimbursed for any one production. 5• State employee costs, including California Highway Patrol, State Park Rangers, University of California and California State University, including campus security forces. • Federal employee costs. • Federal, State, University of California and California State University, Film Permits and Public Property Use Fees. • Local public entity employee costs in California. 3 • Local Public Property Use Fees. • Costs of Public Equipment owned by a Public Agency. Film Costs reimbursement categories I. Personnel (public employee labor) II. Film Permit Fee III. Public Property Use Fee IV. Public Equipment Fee I. Personnel reimbursement Personnel reimbursement will be made for eligible public employee personnel assigned including but not limited to, film monitor, inspectors, notification personnel, and environmental review or public works functions to a film by a Public Agency in California. This amount may include the person’s hourly wage inclusive of all fringe benefits, other administrative charges customarily levied by the Public Agency, and mileage for any personal or official vehicle used to transport the person to and from the set and during the hours working on the film. In cases where a public agency has a spot check or spot monitor program for film production, these are also eligible personnel costs. When public employees perform film monitor duties on private property at the direction of a public agency, these are also eligible personnel reimbursement costs. However, ONLY costs associated with the personnel listed below, at their public Published Costs, are eligible for reimbursement under the FCF Program: 1. State of California employee costs, including California Highway Patrol, State Park Rangers, University of California and California State Universities, (including campus security staff) 2. Federal employee costs in California only, including National Park Service, US Forest Service, and Bureau of Land Management. 3. Local public entity employee costs in California. 3 Local police/sheriff costs are reimbursed at $750 per day up to a maximum of $3,000 per production/episode. 6II. Film Permit Fee reimbursement In some cases, a Public Agency may charge a Film Permit Fee for filming on public property in California. If applicable, the Film Permit Fee may be reimbursed subject to the maximum reimbursement cap of $1,000.00 per day, per location, at the rate set as of December 1, 2000, for the following Public Agencies: 1. State of California agencies4 2. Federal agencies 3. University of California 4. California State University III. Public Property Use Fee reimbursement In some cases, a Public Agency may charge a Public Property Use Fee for filming on a property owned and controlled by a Public Agency including for facilities, roads & parking. This may also be known as a site or location fee. If such a fee exists, the FCF Program may reimburse subject to the maximum reimbursement of $1,500.00 per day, per location, at the rate set as of December 1, 2000, for the following Public Agencies: 1. State of California agencies5 2. Federal agencies 3. University of California 4. California State University 5. California local public entities IV. Public Equipment Fee reimbursement In some cases, a Production Company may use publicly owned and operated equipment in conjunction with filming on public property in California. When this occurs, the FCF Program may provide reimbursement up to a maximum of $500.00 per day, per piece of equipment, at the rate set as of December 1, 2000.6 This includes Public Agencies in California. What are the Program’s Restrictions? Program restrictions include: 1. The FCF Program will only reimburse actual Film Costs that have been paid by the Production Company. 2. If the FCF Program receives an FCF application and reimbursement package that is incomplete, the FCF Program will not process the package until all necessary 4 The State of California does not charge for film permits. No Film Permit Fees for California local public entities are reimbursed. 5 The State of California does not charge for Public Property Use Fees; however, there may be occasions where a Production Company using State property may be asked to pay fees to cover parking or campground charges. In these cases, the FCF Program would reimburse these fees as a Public Property Use Fee. 6 Reimbursement of Public Equipment Fees charged by a Public Agency shall not exceed the reasonable costs of providing comparable equipment charged by other entities, public or private, in the community. 7information is received. (The Production Company will be advised of and given the opportunity to correct the deficiency.) 3. If it is determined that a Production Company has submitted false or misleading information for the purpose of obtaining reimbursement, reimbursement will be denied. 4. A Production Company that has unpaid and/or overdue bills to any Public Agency is not eligible for reimbursement until such outstanding bills have been settled. Procedures are in place to correct misinformation and resolve unpaid bills owed to a Public Agency. For more information on these procedures, contact the FCF program staff. Special Provision: • New caps established on January 1, 2002 apply to Film Permit Fee, Public Property Use Fee and Public Equipment Fee costs incurred dated from July 1, 2001 to present. New caps are listed within these revised guidelines. • Effective October 1, 2002, the reimbursement for local police/sheriff is $750 per day with a maximum of $3,000 per production/episode. What Film Costs are not eligible for reimbursement? The FCF Program does not reimburse these costs: 1. Scouting fees. (That do not result in the majority of the days of principle photography of production within California.) *7 2. Business license fees. 3. Property damage. 4. Cancellation fees for a Film Permit. 5. Refund for Film Costs. 6. Film Costs incurred prior to January 1, 2001. Local police costs prior to October 1, 2002. 7. Duplicative Costs. No two Film Partners or public entities may submit the same Film Costs for reimbursements. 8. Any costs not specifically authorized. What production types are not eligible? The following types of productions do NOT qualify for the FCF Program: (a) news programs; (b) current events or public affairs programming; (c) talk shows; (d) game shows or other contests; (e) sporting events; (f) award shows; (g) productions that solicit funds; (h) films made as part of an educational course by a student of a college or university; (i) productions that fall within the record keeping requirement of 18 U.S.C. section 2257. 7 Majority means 50% + 1 8The FCF Reimbursement Process When and how does a Production Company apply for the FCF Program? Production Companies are asked to apply within 180 days at the end of Principal Photography or completing the job. Applications received after 180 days and no later than one year, must be approved by the Director upon submittal. Production Companies are encouraged to complete the FCF application and reimbursement package online and follow FCF instructions. Visit www.filmcafirst.com. Application packages are also available through the CFC. The FCF application and reimbursement package contains four parts: (1) business contact information which provides the FCF Program with information regarding your company and the name of the production; (2) production data; (3) information and back up documentation regarding the reimbursement sought; (4) a State of California Payee Data Record Form, which provides information to the State of California regarding the filmmaking entity seeking reimbursement. Production Companies complete the FCF reimbursement process by mailing a signed and completed FCF application and reimbursement package to CFC. See contact information for the CFC mailing address. To submit reimbursements, please note the following provisions before completing the package: 1. Each production requires a separate FCF application and reimbursement package. Each production also receives a Production Code to track a FCF reimbursement package. The Production Company also becomes a Film Partner and will receive a Film Partner number to track ongoing participation. The Film Partner is also the Payee. 2. No more than $300,000 per production will be reimbursed. In the case of episodic television series, the limit shall be applied to each individual episode. For television production only, a Production Company may either submit a separate FCF application for each episode, or not more than six episodes may be submitted by a Production Company in an FCF application packet. If more than six episodes are submitted within one application, processing requires the Director’s approval. In the case of commercials, a “job” or production contract (for a series of spots awarded to a Production Company) shall be a production. 3. The Production Company contact must complete, sign and return a State of California Payee Data Record Form for the Program to receive a reimbursement. 4. If a Production Company has a Payee Data Record Form on file with the CFC, another one does not need to be submitted unless contact information on the form has changed. What supporting documentation needs to be submitted? 1. For Personnel Reimbursement – copies of Public Agency permits or invoices which demonstrate that the public labor costs were paid, as well as a production report for each day you are requesting reimbursement. Copy the front and the back of the final 9signed production report. If on Production Company payroll, submit copies of signed time cards and payroll company reports detailing employer fringe. 2. For Film Permit Fee – copies of Public Agency permit or invoice, which demonstrate that the Film Permit was paid. Final signed production report for the permit day(s) requested. 3. For Public Property Use Fee – copies of Public Agency permit or invoice, which indicate that the Public Property Use Fee was paid. Final signed production report for locations day(s) requested. 4. For Public Equipment Fee -copies of Public Agency permit or invoice, which detail equipment fees were paid. Final signed production report for Public Equipment Fee day(s) requested. Submit the backup information with an FCF application & reimbursement package. See FCF document checklist for details. All backup documentation should be hand numbered in date order, just as you would a petty cash envelope. These hand numbers are the Document Number. Each document should have a unique number. Some of the documentation required will be the same for different sections. For instance, the same production report could be the documentation for both a personnel reimbursement and a Public Property Use Fee, if they occurred on the same day. When will a Production Company receive reimbursement? The CFC will confirm that the application and reimbursement form is complete. Upon its verification, the CFC will forward the FCF package to the State Controller for payment within 30 days. A delay in payment may occur if information required on reimbursement forms is missing or is unsupported. Additionally, the CFC will notify first-time applicants that their application and reimbursement form has been received. This notice will occur via email or U.S. mail and will include a Film Partner number. The Film Partner number is needed to request new reimbursements and track ongoing Program participation. How can an additional reimbursement be requested for a production? An additional reimbursement may be requested for a production previously submitted to the FCF Program. However, before an additional reimbursement is requested, you must have a Production Code as well as a Film Partner number provided by the FCF Program. A Production Company may not submit more than three reimbursement packages for any one production. 10How to contact FCF Program Film California First Program California Film Commission 7080 Hollywood Blvd, Suite 900 Hollywood, CA 90028 323.860.2960 x 199 Email: filmcafirst@commerce.ca.gov Website: www.filmcafirst.com or www.film.ca.gov Comments: The CFC also welcomes comments and suggestions in writing regarding the guidelines and the Program. Please submit comments online at www.filmcafirst.com under “Contact Us”. 11SUMMARY OF ELIGIBLE COSTS Film Costs: FederalStateUC's, CSU'sLocal* I. Personnel Reimbursement: Covered CoveredCoveredCovered local police/sheriff $750 per day --$3000 max per production Not II. Film Permit Fees: $1000 Cap** No Charge***$1000 Cap**Covered III. Public Property Use Fees: $1500 Cap** No Charge***$1500 Cap**$1500 Cap** IV. Public Equipment: $500 Cap** $500 Cap**$500 Cap**$500 Cap** *Local also covers special local districts. ** Caps are based on maximum per day per location or piece of equipment. ***State of California has no Film Permit Fees or Public Property Use Fees. UC = University of California, CSU = California State University. The maximum reimbursement allowed through the fund shall be no greater than $300,000 per production. Summary: The multi-million dollar Film California First program will reimburse certain film costs incurred by a qualified Production Company when filming on public property. The "Film Costs" eligible for reimbursement include the usual and customary charges levied by a Public Agency in connection with a motion picture, television, commercial or still photography, including preparation and strike. However, restrictions apply. See FCF Program Guidelines. Film Costs: I. Personnel Reimbursement: The published cost for public employee personnel assigned to a film by a public agency including the person's hourly wage, inclusive of all fringe benefits, and other charges customarily levied by the public agency; mileage for personal or official vehicle used to transport the person to and from the set, and during the hours working on the film. Effective October 1, 2002, the reimbursement for local police/sheriff is $750 per day --With a maximum cap of $3000 per production/episode II. Film Permit Fee: The published cost for a film permit, subject to the maximum limits as outlined in the above schedule. Film Permit Fee reimbursement will be limited to the following entities: A. State of California agencies B. Federal agencies C. University of California D. California State University III. Public Property Use Fee: The published cost of a location use fee in connection with film production for property owned, operated and maintained by a public agency listed in (A) -(E) below, subject to the maximum limits as outlined in the above schedule. A. State of California agencies B. Federal Agencies C. University of California D. California State University E. California local public entities IV. Public Equipment: The published cost of equipment rental mandated and owned by a public agency in connection with film production, subject to maximum limits as outlined in the above schedule. Rental charges shall not exceed the reasonable costs of providing similar equipment charged by other entities, public or private, in the community. Last Updated 10/1/02Film California First Program Document Checklist These documents are required for reimbursement. Please make sure the following is enclosed: # Application (completed, signed and dated.) # Payee Data Record Form (If you are a first time applicant and do NOT have a Film Partner number, completed in full including federal identification number or social security number, signed, and dated.) For Part F of the application, confirm the supporting documentation is enclosed and numbered. I. Personnel Reimbursement # Public Agency permits or invoices. # Signed production reports, front and back for each “personnel” day requested. If on a production payroll also include: # Signed copies of timecards. # Copy of payroll reports with detail and employer fringe. II. Film Permit Fee # Public Agency film permits or invoices. # Signed production reports, front and back for each “permit” day requested. III. Property Use Fee – Location and Site Use Fees # Public Agency film permits or invoices. # Signed production reports, front and back for each “location” day requested. IV. Equipment Fee # Public Agency film permits or invoices. # Signed production reports, front and back for each “equipment” day requested. Note: All supporting documentation must be submitted in section order. If supporting documentation is validated by the same permit or production report, it is permissible to use the same document and document number. Please make a copy of this form to keep with your records. Mail to: California Film Commission Film CA First Program 7080 Hollywood Blvd., # 900 Hollywood, CA 90028 13Glossary For purposes of these guidelines, the following is a glossary of commonly used words: Commission and CFC -means the California Film Commission. CSU -California State University, all campuses. Document number -the handwritten number used by a Production Company on supporting documentation. Film -means commercial production for motion picture, television, commercial or still photography. The following types of productions do not qualify as a Film under these guidelines: (a) news programs; (b) current events or public affairs programming; (c) talk shows; (d) game shows or other contests; (e) sporting events; (f) award shows; (g) productions that solicit funds; (h) films made as part of an educational course by a student of a college or university; and (i) productions that fall within the record keeping requirement of 18 U.S.C. section 2257 FCF -Film California First Film Costs -means the usual and customary charges by a public agency connected with the production of a film (including preparation and strike), limited to the following: A. State of California employee costs, including CSU and UC. B. Federal employee costs in California. C. Federal, State of California, University of California, and California State University, permits and Public Property Use Fees in California. D. Local public entity employee costs in California. E. Public Property Use Fees of local entities in California. F. Rental equipment costs by a Public Agency in connection with the Film. Equipment rental costs shall only include equipment owned by the Public Agency issuing the Film Permit. Film Partner -means a Production Company or Public Agency eligible for reimbursement of film costs through the Film California First Program. The Film Partner will receive a Film Partner number for future program use. Film Permit -means an administrative or legislative permit, or the equivalent, required by a Public Agency for a Production Company to conduct film activities in its jurisdiction. Film Permit Fee -may also be known as a “Permit Review Fee” or “Application Fee,” means the fee charged for the review and issuance of a Film Permit by a Public Agency. Fund -means the Film California First Fund. A fund authorized by the State of California for three years beginning with the 2000-2001 fiscal year. Payee -means the Film Partner, also refers to the State of California Payee Date Record Form and the Production Company or entity to be reimbursed. 14Principal Photography -means any filming done under the direct control and supervision of the director of the film. Production Code -means the code assigned by the FCF Program to a production. Each production receives a unique title or code. Production Company -means a person, partnership, corporation, or Public Agency engaged in the commercial production of a film. Public Property Use Fee -means the fee charged by a public entity to a Production Company for the use of property that the public entity owns and controls. Program -means the Film California First Program, also referred to as FCF. Public Agency -means any of the following: A. The State of California, and any of its agencies, departments, boards, or commissions. B. The Federal government, and any of its agencies, departments, boards, or commissions. C. The University of California. D. The California State University. E. California local public entities. F. Any nonprofit corporation acting as a contract agent for the recovery of Film Costs incurred by any of the entities listed above in subsections A – E. Public Equipment -rental equipment costs by a public agency in connection with a film. Equipment rental costs shall only include equipment owned by a Public Agency issuing the film permit. Published Costs -means the costs contained in a fee schedule adopted by a public agency. TTCA -Technology, Trade and Commerce Agency. UC -University of California, all campuses. Last updated 10/02 15