Legislative Audit Committee. The bill strengthens the requirements necessary to earn performance-based incentives for film production activities in the state by:
- Requiring a production company that originates production activities in Colorado to have engaged in production activities in the state for other projects in the 12 months prior to applying for the performance-based incentive for a new project, and if the production company creates a business entity for the sole purpose of conducting production activities in the state, requiring the manager of the business to be a resident of the state for 12 consecutive months as of the date of applying for a performance-based incentive as well as defining a manager as someone with decision-making authority to give permission or 'go-ahead' to move forward with a project;
- Requiring a production company to provide documentation to prove that the production company meets the statutory definition of 'originates';
- Requiring the production company's certified public accountant to provide in his or her written report documentation of the production company's expenditures, including the qualified local expenditures, and documentation that proves that the production company hired the necessary workforce to qualify for the performance-based incentive;
- Requiring the office of economic development (office) to conduct a review of the certified public accountant's written report to ensure the statutory requirements are met;
- Requiring the office to develop a list of certified public accountants that meet the statutory requirements and make the list available to all production companies as well as post it on the office of economic development's website; and
- Specifying that the office shall not issue a performance-based incentive to a production company until the production company and the office have entered into a contract in accordance with the procurement code.
The bill also specifies that if a performance-based incentive is erroneously or improperly issued to a production company for any reason, the office is required to engage the services of the attorney general to recover from the production company any amount of the performance-based incentive that was erroneously or improperly issued.
The bill also requires the Colorado economic development commission to annually schedule an orientation with the staff of the office in order to receive an official overview of the statutory requirements for a production company to earn a performance-based incentive for film production in Colorado.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)