North Carolina HB 171: Modify Film Grant Fund.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA 
SESSION 2015 
H 1 
HOUSE BILL 171 
 
 
Short Title: Modify Film Grant Fund. (Public) 
Sponsors: Representatives Davis, Lewis, Saine, and Iler (Primary Sponsors). 
For a complete list of Sponsors, refer to the North Carolina General Assembly Web Site. 
Referred to: Finance. 
March 9, 2015 
*H171-v-1* 
A BILL TO BE ENTITLED 1 
AN ACT TO MODIFY THE FILM AND ENTERTAINMENT GRANT FUND. 2 
The General Assembly of North Carolina enacts: 3 
SECTION 1.  G.S. 143B-437.02A reads as rewritten: 4 
"§ 143B-437.02A.  The Film and Entertainment Grant Fund. 5 
(a) Creation and Purpose of Fund. – There is created in the Department of Commerce a 6 
special,  nonreverting  account  to  be  known  as  the  Film  and  Entertainment  Grant  Fund  to 7 
provide   funds   to   encourage   the   production   of   motion   pictures,   television   shows,   and 8 
commercials  and  to  develop  the  filmmaking  industry  within  the  State.  The  Department  of 9 
Commerce  shall  adopt  guidelines  providing  for  the  administration  of  the  program.  Those 10 
guidelines may provide for the Secretary to award the grant proceeds over a period of time, not 11 
to  exceed  three  years.  Those  guidelines  shall  include  the  following  provisions,  which  shall 12 
apply to each grant from the account: 13 
(1) The  funds  are  reserved  for  a  production  on  which  the  production  company 14 
has qualifying expenses of at least the following: 15 
a. For a feature-length film, five one million dollars 16 
($5,000,000).($1,000,000). 17 
b. For  a  video  or  television  series, two  hundred  fifty  thousand  dollars 18 
($250,000)one million dollars ($1,000,000) per episode. 19 
c. For  a  commercial  for  theatrical  or  television  viewing,  two  hundred 20 
fifty thousand dollars ($250,000). 21 
(2) The funds are not used to provide a grant in excess of any of the following: 22 
a. An  amount  more  than  twenty-five  percent  (25%)  of  the  qualifying 23 
expenses for the production. 24 
b. An amount more than five ten million dollars 25 
($5,000,000)($10,000,000) for    a    feature-length film,film    for 26 
theatrical     viewing, more     than five two million     dollars 27 
($5,000,000)($2,000,000) for  a feature-length  film  for  television 28 
viewing or a television  or  video pilot or  episode for  a television  or 29 
video  series,  or  two  hundred  fifty  thousand  dollars  ($250,000)  for  a 30 
commercial for theatrical or television viewing. 31 
(3) The  funds  are  not  used  to  provide  a  grant  to  more  than  one  production 32 
company for a single production. 33 
(4) The funds are not used to provide a grant for a production that meets one or 34 
more of the following: 35 

General Assembly of North Carolina Session 2015 
Page 2   H171 [Edition 1] 
a. It contains material that is "obscene," as defined in G.S. 14-190.1, or 1 
that is "harmful to minors," as defined in 2 
G.S. 14-190.13.G.S. 14-190.1. 3 
b. It  has  the  primary purpose  of  political  advertising,  fundraising,  or 4 
marketing, other than by commercial, a product, or service. 5 
c. News programming, including weather, financial market, and current 6 
events reporting. 7 
d. Live sporting event programming, including pre-event and post-event 8 
coverage  and  scripted  sports  entertainment.  For  purposes  of  this 9 
exception,  a  live  sporting  event  is  a  scheduled  sporting  competition, 10 
game,  or  race  that  is  originated  solely  by  an  amateur,  collegiate,  or 11 
professional   organization,   institution,   or   association   for   live   or 12 
tape-delayed  television  or  satellite  broadcast.  The  term  does  not 13 
include   commercial   advertising,   an   episodic   television   series,   a 14 
television  pilot,  a  music  video,  a  motion  picture,  or  a  documentary 15 
production  in  which  sporting  events  are  presented  through  archived 16 
historical footage or similar footage taken at least 30 days before it is 17 
used. 18 
e. Radio productions. 19 
f. It  is  a  talk,  game,  or  awards  show  or  other  gala  event.  For  purposes 20 
of   this   exception,   an   awards   show   is   television   programming 21 
involving the filming of a ceremony in which individuals, groups, or 22 
organizations are given an award. 23 
g. It  fails  to  contain,  in  the  end  credits  of  the  production,  a  statement 24 
that the production was "Filmed in North Carolina," a logo provided 25 
by  the  North  Carolina  Film  Office,  and  an  acknowledgement  of  the 26 
regional film office responsible for the geographic area in which the 27 
filming  of  the  production  occurred.  Additionally,  the  production 28 
company  will  offer  marketing  opportunities  to  be evaluated  by  the 29 
North  Carolina  Film  Office  to  ensure  that  they  offer  promotional 30 
value to the State. 31 
(5) Priority for the use of funds shall be given to productions that ar