HB 5992

HOUSE BILL NO. 5992
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
by amending sections 29, 29a, 29b, and 29d (MCL
125.2029, 125.2029a, 125.2029b, and 125.2029d), sections 29 and 29b as added by
2008 PA 75, section 29a as amended by 2011 PA 291, and section 29d as amended
by 2020 PA 199; and to repeal acts and parts of acts.
the people of the state of michigan enact:
Sec. 29. As used in this chapter:
(a) "Applicant" means that term as defined in section 285 of
the income tax act of 1967, 1967 PA 281, MCL 206.285.
(b) (a) "Commissioner"
means the Michigan film commissioner created in section 29b.
(c) (b) "Council"
means the Michigan film office advisory council created in section 29c.
(d) "Film and media" includes all of the following:
(i) Films.
(ii) Television
programs.
(iii) Commercials.
(iv) Corporate
videos.
(v) Commercial
photography.
(vi) Digital media.
(e) (c) "Local
film office" means an office, agency, bureau, or department of a political
subdivision of this state that seeks to promote film production within the
political subdivision and that is funded principally by the political
subdivision.
(f) (d) "Office"
means the Michigan film and digital media office
created in section 29a.
(g) (e) "Promotion
fund" means the Michigan film promotion fund created under section 29d.
(h) "Qualified Michigan vendor" means that term as defined in
section 285 of the income tax act of 1967, 1967 PA 281, MCL 206.285.
(i) "Qualified personnel expenditure" means that term as
defined in section 285 of the income tax act of 1967, 1967 PA 281, MCL 206.285.
(j) "Qualified production" means that term as defined in
section 285 of the income tax act of 1967, 1967 PA 281, MCL 206.285.
(k) "Qualified production expenditure" means that term as
defined in section 285 of the income tax act of 1967, 1967 PA 281, MCL 206.285.
(l)
"State" means the state of Michigan.
(m) "Tax credit program" means the tax credits under sections
285 and 678 of the income tax act of 1967, 1967 PA 281, MCL 206.285 and 206.678.
Sec. 29a. (1) The Michigan film and digital media office is created in the fund. The
office shall be is the
successor to any authority, powers, duties, functions, or responsibilities of
the Michigan film office under former section 21 of the history, arts, and
libraries act, 2001 PA 63.
(2) The office may
do all of the following:
(a) Promote and
market locations, talent, crews, facilities, and technical production and other
services related to film, digital media, and
television film and media production in
this state.
(b) Provide to
interested persons descriptive and pertinent information on locations, talent,
crews, facilities, and technical production and other services related to film, digital media, and television film and media production in this state.
(c) Provide
technical assistance to the film, television, and
digital media film and media industry in
locating and securing the use of locations, talent, crews, facilities, and
services in this state.
(d) Encourage
community and Michigan film, digital media, and
television film and media production
industry participation in, and coordination with, state and local efforts to
attract film, digital media, and television film and media production in this state.
(e) Serve as this
state's chief liaison with the film, digital media,
and television film and media production
industry and with other governmental units and agencies for the purpose of
promoting, encouraging, and facilitating film,
digital media, and television film and media production
in this state.
(f) Explain the
benefits and advantages of producing films, digital
media, and television productions film and
media in this state.
(g) Assist film, digital media, and television film and media producers with securing location
authorization and other appropriate services connected with film, digital media, and television film and media production in this state.
(h) Scout potential film locations for national and
international film, digital media, and television prospects.
(i) Escort film, digital media, and television producers on
location scouting trips.
(h) (j) Serve
as a liaison between film, digital media, and
television film and media producers,
state agencies, local agencies, federal agencies, community organizations and
leaders, and the film, digital media, and
television film and media industry in
this state.
(i) (k) Assist
film, digital media, and television film and media producers in securing permits to film or shoot at specific locations in this state and in
obtaining needed services related to the film and media production.
of a film, digital media, or a television program.
(j) (l) Represent this state at film,
digital media, and television film and media industry
trade shows and film festivals.
(k) (m) Sponsor
workshops or conferences on topics relating to filmmaking, including, but not
limited to, screenwriting, film financing, and the preparation of communities
to attract and assist film, digital media, and
television film and media productions in
this state.
(l) (n) Encourage cooperation between local,
state, and federal government agencies and local film offices in the location
and production of films, digital media, and
television programming film and media in
this state.
(m) (o) Coordinate
activities with local film offices.
(n) (p) Facilitate
cooperation from state departments and agencies, local governments, local film
offices, federal agencies, and private sector entities in the location and
production of films, digital media, and television
programming film and media in this
state.
(o) (q) Prepare,
maintain, and distribute a directory of persons, firms, and governmental
agencies available to assist in the production of films,
digital media, and television programming film
and media in this state.
(p) (r) Prepare,
maintain, and distribute a digital library depicting the variety and extent of
the locations within this state for film, digital
media, and television film and media productions.
(q) (s) Prepare
and distribute appropriate promotional and informational materials, in a frequently asked question format and other formats,
that do all of the following:
(i) Describe desirable locations in this
state for film, digital media, and television film and media production.
(ii) Explain the benefits and advantages of
producing films, digital media, and television
productions film and media in this
state.
(iii) Detail services and assistance available
from state government, from local film
offices, and from the film, digital media, and television film and media industry in this state.
(r) (t) Solicit
and accept gifts, grants, labor, loans, and
other aid from any person, government, or entity. The film office shall
disclose the identity and amount of all gifts, grants, and other donations on
its website.
(s) (u) Employ
technical experts, other officers, agents, or employees, permanent or
temporary, paid from the funds of the office. The office shall determine the
qualifications, duties, and compensation of those the office employs.
(t) (v) Contract
for goods and services and engage personnel as necessary to perform the duties
of the office under this chapter.
(u) (w) Study,
develop, and prepare reports or plans the office considers necessary to assist
the office in the exercise of its powers under this chapter and to monitor and
evaluate progress under this chapter.
(v) (x) Exercise
the duties and responsibilities vested in the office under this chapter and all
of the following:
(i) Section 88d.
(ii) Section 88j(3)(e).
(iii) Section 4cc of the general sales tax
act, 1933 PA 167, MCL 205.54cc.
(iv) Sections 455 to 459 of the Michigan
business tax act, 2007 PA 36, MCL 208.1455 to 208.1459.
(y) Create and operate a film and digital media production
assistance program to encourage film and digital media production throughout
this state as provided in section 29h.
(iii) Sections 285 and 678 of the income tax
act of 1967, 1967 PA 281, MCL 206.285 and 206.678.
(w) Do all of the following in connection with the tax credit program:
(i) Prescribe forms for applications,
notifications, contracts, or other agreements.
(ii) Beginning on the effective date of the
amendatory act that added this subparagraph and until the date that is 10 years
after the effective date of the amendatory act that added this subparagraph, accept
applications, determine eligibility, and issue qualified production
certificates for tax credits.
(iii) Work with applicants, qualified Michigan
vendors, and other vendors to ensure that all qualified personnel expenditures
and qualified production expenditures are paid.
(iv) Assist applicants pursuant to this
chapter and sections 285 and 678 of the income tax act of 1967, 1967 PA 281,
MCL 206.285 and 206.678, to promote, foster, and support qualified productions
and the related job creation or retention within this state.
(v) Gather information and conduct
inquiries, in the manner and by the methods the office considers appropriate,
including, but not limited to, gathering all of the following information:
(A) Information required for the office to comply with this chapter and
sections 285 and 678 of the income tax act of 1967, 1967 PA 281, MCL 206.285
and 206.678.
(B) Information regarding applicants that the office considers necessary
or appropriate for the purpose of making any designations or certifications.
(C) Information to assist the office with any recommendations or
guidance in furtherance of the purposes of this chapter and the tax credit
program.
(D) Financial reports, returns, or other records relating to the applicant
or the qualified production.
(vi) Require applicants, on written request,
to issue any necessary authorization to the appropriate federal, state, or
local authority for the release of information described in subparagraph (v).
(vii) Subject to appropriation, employ
sufficient personnel for the administration, operation, and related support of
the tax credit program and as required to adequately discharge the office's
duties and responsibilities under this chapter and sections 285 and 678 of the
income tax act of 1967, 1967 PA 281, MCL 206.285 and 206.678.
(viii) Require an applicant to keep proper
books of record and accounts in accordance with generally accepted accounting
principles consistently applied.
(ix) Require the books, records, and other
documents related to the qualified production in the custody or control of the applicant
to be open to reasonable inspection by the office for at least 1 year after the
completion of the agreed-upon procedures as that term is defined in section 285
of the income tax act of 1967, 1967 PA 281, MCL 206.285. For purposes of this
subparagraph, reasonable inspection includes, but is not limited to, both of
the following:
(A) Making copies of the books, records, or other documents.
(B) The inspection or appraisal of any of the assets of the applicant or
the qualified production.
(x) Take any actions that are necessary or
appropriate to protect this state's interest in the event of bankruptcy,
default, foreclosure, or noncompliance with the terms and conditions of the tax
credit program or an agreement or contract under that program, including selling,
leasing, or otherwise disposing of, on terms and conditions determined by the office
to be appropriate, any real or personal property that the office receives as a
result of the bankruptcy, default, foreclosure, or noncompliance.
(x) (z) All
other things necessary or convenient to achieve the objectives and purposes of
the office, this chapter, or other laws that relate to the purposes and
responsibilities of the office.
(3) The enumeration
of a power in this chapter shall does not be construed as
a limitation upon limit the general
powers of the office. The powers granted under this chapter are in addition to
those powers granted by any other law.
(4) The
commissioner and the president of the fund shall cooperate in administering the
budget, procurement, and related management functions of the office. The fund
may provide the office with staff support and other services to assist the
office in performing the functions and duties of the office.
(5) State
departments, agencies, boards, commissions, and officers and local film offices
shall cooperate with the office in the performance of the office's duties under
this chapter.
Sec. 29b. (1) The head of the office shall be is the
Michigan film commissioner. The commissioner shall
be is a member of the state classified
service. The terms and conditions of the
employment of the commissioner shall must be governed by a senior executive service
limited term employment agreement and the rules and regulations of the civil
service commission governing the senior executive service. The term of the
agreement shall must
not exceed 2 years and shall must end on December 31 of an even-numbered year
consistent with the rules and regulations of the civil service commission. The governor shall be fund is the appointing authority for the
commissioner. Before entering upon on the duties of his or
her office, the commissioner shall take and file the constitutional oath
of office provided in section 1 of article XI of the state constitution of
1963.
(2) The
commissioner shall serve as an advisor to the governor on matters relating to
films and other digital media. The
commissioner may report directly to the governor and the president of the fund
on matters relating to the office, to the
council, and to films and digital media film and media productions generally.
(3) The
commissioner shall supervise, and be is responsible for, the performance of the functions
of the office under this chapter. The commissioner shall perform all duties
vested in the commissioner under the laws of this state. The commissioner shall
consult with the president of the fund on activities of the office affecting
the fund.
(4) The
commissioner shall attend the meetings of the council and provide the council
and the president of the fund with regular reports and other information
describing the activities of the office.
(5) Except as
otherwise provided in this chapter, the commissioner shall exercise his or her the
commissioner's powers, duties, functions, and responsibilities under
this chapter independently of the fund.
(6) The
commissioner may promulgate rules under the administrative procedures act of
1969, 1969 PA 306, MCL 24.201 to 24.328, as the commissioner deems considers necessary
to execute the duties and responsibilities of the office, including, but not limited to, rules the commissioner
considers necessary for the administration of the tax credit program.
Sec. 29d. (1) The
Michigan film promotion fund is created within in the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into
in the
promotion fund, including federal funds, other state revenues, gifts, bequests,
and other donations, including, but not limited to, all both of the
following:
(a) Fees deposited in the promotion fund under sections 455 to 459 of the
Michigan business tax act, 2007 PA 36, MCL 208.1455 to 208.1459.sections 285 and 678 of the income
tax act of 1967, 1967 PA 281, MCL 206.285 and 206.678.
(b) Proceeds deposited in the
promotion fund under section 88d.
(c)
Funds appropriated to create and operate the film and digital media production
assistance program.
(3) The state treasurer shall direct the investment of money in the
promotion fund and shall credit
to the promotion fund interest
and earnings from promotion
fund the investments to the promotion fund.
(4) Money in the promotion fund at the close of a fiscal year shall remain remains in the
promotion fund and shall does not lapse to
the general fund.
(5) Money in the promotion fund may be expended, upon on appropriation, to
support the functions of the office under this chapter and other applicable law
and for purposes authorized under this chapter.
(6) Beginning October 1, 2011, the fund shall transfer to and
deposit in the promotion fund all money appropriated for Michigan strategic
fund – film incentive funding under section 1201 of article VIII of 2011 PA 63.
(7) For the fiscal year ending
September 30, 2020 only, $37,126,100.00 of the money in the Michigan film
promotion fund is transferred to and must be deposited into the general fund.
Enacting section 1.
Section 29h of the Michigan strategic fund act, 1984 PA 270, MCL 125.2029h, is
repealed.
Enacting section 2. This amendatory act does not take
effect unless Senate Bill No. ____ (request no. S00777'25) or House Bill No. 5991
(request no. H00777'25) of the 103rd Legislature is enacted into law.