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Measure SB 756
Authors Smallwood-Cuevas  
Subject California Film Commission: motion picture tax credits: tracking and compliance program.
Relating To relating to motion picture tax credits.
Title An act to add Section 14998.14 to the Government Code, relating to motion picture tax credits.
Last Action Dt 2025-09-18
State Enrolled
Status In Floor Process
Active? Y
Vote Required Majority
Appropriation No
Fiscal Committee Yes
Local Program No
Substantive Changes None
Urgency No
Tax Levy No
Leginfo Link Bill
Actions
2025-10-13     In Senate. Consideration of Governor's veto pending.
2025-10-13     Vetoed by the Governor.
2025-09-23     Enrolled and presented to the Governor at 2 p.m.
2025-09-13     Assembly amendments concurred in. (Ayes 37. Noes 0. Page 3037.) Ordered to engrossing and enrolling.
2025-09-13     In Senate. Concurrence in Assembly amendments pending.
2025-09-12     Read third time. Passed. (Ayes 78. Noes 1. Page 3417.) Ordered to the Senate.
2025-09-03     Read second time. Ordered to third reading.
2025-09-02     Read second time and amended. Ordered to second reading.
2025-08-29     From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 29).
2025-08-20     August 20 set for first hearing. Placed on APPR. suspense file.
2025-07-08     From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (July 8). Re-referred to Com. on APPR.
2025-06-16     Referred to Com. on A.,E.,S., & T.
2025-06-05     In Assembly. Read first time. Held at Desk.
2025-06-04     Read third time. Passed. (Ayes 38. Noes 0. Page 1518.) Ordered to the Assembly.
2025-05-27     Read second time. Ordered to third reading.
2025-05-23     From committee: Do pass as amended. (Ayes 6. Noes 0. Page 1212.) (May 23).
2025-05-23     Read second time and amended. Ordered to second reading.
2025-05-16     Set for hearing May 23.
2025-05-12     May 12 hearing: Placed on APPR. suspense file.
2025-05-02     Set for hearing May 12.
2025-04-28     From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 0. Page 917.) (April 28). Re-referred to Com. on APPR.
2025-04-21     From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. P. & E.D.
2025-04-03     Set for hearing April 28.
2025-04-02     Re-referred to Com. on B. P. & E.D.
2025-03-27     Withdrawn from committee.
2025-03-27     Re-referred to Com. on RLS.
2025-03-26     From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
2025-03-12     Referred to Com. on REV. & TAX.
2025-02-24     From printer. May be acted upon on or after March 24.
2025-02-24     Read first time.
2025-02-21     Introduced. To Com. on RLS. for assignment. To print.
Keywords
Tags
Versions
Enrolled     2025-09-18
Amended Assembly     2025-09-02
Amended Senate     2025-05-23
Amended Senate     2025-04-21
Amended Senate     2025-03-26
Introduced     2025-02-21
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Smallwood-Cuevas</ns0:AuthorText>
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		<ns0:Title> An act to add Section 14998.14 to the Government Code, relating to motion picture tax credits.</ns0:Title>
		<ns0:RelatingClause>motion picture tax credits</ns0:RelatingClause>
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			<ns0:Subject>California Film Commission: motion picture tax credits: tracking and compliance program.</ns0:Subject>
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			<html:p>The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including numerous motion picture credits. Most recently, existing law, for taxable years beginning on or after January 1, 2025, allows a motion picture credit (motion picture credit 4.0) to be allocated by the California Film Commission on or after July 1, 2025, and before July 1, 2030, in an amount equal to 20% or 25% of qualified expenditures for the production of a qualified motion picture in this state. Existing law establishes the California Film Commission to administer the motion picture credits, to provide services necessary to increase filming in the state, and to implement specified programs related to the motion picture industry, including a program to promote media production in the state.</html:p>
			<html:p>This bill, upon
			 appropriation by the Legislature, would require the California Film Commission to integrate additional data collection requirements, as specified, into the existing motion picture tax credit framework. The bill would require the commission, in consultation with industry stakeholders, payroll companies, and subject matter experts, to adopt definitions, reporting templates, and metrics for the additional data collection, and to develop protocols to reduce nonresponse rates. The bill would require the commission to address noncompliance with the data collection requirements through existing enforcement conditions and procedures of the motion picture tax credits, as provided. The bill would additionally require the commission to publish an annual compliance report summarizing the collected data, trends in diversity and economic impact, and recommendations for program improvements. </html:p>
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		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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				Section 14998.14 is added to the 
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				, to read:
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								(a)
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								The California Film Commission shall integrate additional data collection requirements described in this section into the motion picture tax credit framework, as specified in Sections 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, and 23698.1 of the Revenue and Taxation Code and this chapter, including the existing diversity workplan, interim assessment, and final assessment requirements, without establishing a separate compliance program.
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								(b)
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								The additional data collection to be integrated pursuant to subdivision (a) shall include all of the following:
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								(1)
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								Demographic data
						currently not required for all hired employees, including disability status, veteran status, and where voluntarily provided, LGBTQ+ status.
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								(2)
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								Aggregate ZIP Code hiring data voluntarily reported by credit recipients for the purpose of assessing local workforce impacts.
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								(3)
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								Apprenticeship and trainee utilization reports demonstrating the inclusion of underrepresented groups in film production trades and related industries.
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								(c)
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								(1)
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								The commission, in consultation with industry stakeholders, payroll companies, and subject matter experts, to ensure clarity, feasibility, and practical implementation, shall adopt definitions, reporting templates, and narrowly tailored metrics for the additional data collection required under this section.
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								(2)
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								The commission shall develop data collection protocols to reduce nonresponse rates and improve disaggregation of “Multiple” or “Other” categories that recognize that high rates of unreported or aggregated responses limit meaningful analysis.
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								(3)
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								Where feasible, workforce demographic and wage and hours data required under this section may be reported in aggregate using certified
						payroll data or verified third-party payroll reports submitted by the production or its payroll service provider. The commission shall work with industry stakeholders and payroll companies to develop standardized templates that align with existing payroll reporting systems, ensure data accuracy, and protect individual employee privacy.
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								(4)
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								In developing reporting templates and evaluation metrics under this section, the commission shall consider both proportional representation relative to the California general population and historic and national-level underrepresentation in the film and entertainment industries.
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								(d)
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								The commission shall address noncompliance with data collection requirements under this section solely through the existing enforcement conditions and
						procedures of the motion picture tax credits. This section does not create new monetary penalties, independent enforcement mechanisms, or authorize a reduction in the amount allocated or allowed for a motion picture tax credit.
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								(e)
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								The commission shall publish an annual compliance report, in accordance with Section 9795, summarizing the collected data, trends in diversity and economic impact, and recommendations for improvements in the motion picture tax credit framework. The report shall be made publicly available on the commission’s website.
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								(f)
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								This section shall become operative upon an appropriation by the Legislature for purposes of the program.
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Last Version Text Digest The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including numerous motion picture credits. Most recently, existing law, for taxable years beginning on or after January 1, 2025, allows a motion picture credit (motion picture credit 4.0) to be allocated by the California Film Commission on or after July 1, 2025, and before July 1, 2030, in an amount equal to 20% or 25% of qualified expenditures for the production of a qualified motion picture in this state. Existing law establishes the California Film Commission to administer the motion picture credits, to provide services necessary to increase filming in the state, and to implement specified programs related to the motion picture industry, including a program to promote media production in the state. This bill, upon appropriation by the Legislature, would require the California Film Commission to integrate additional data collection requirements, as specified, into the existing motion picture tax credit framework. The bill would require the commission, in consultation with industry stakeholders, payroll companies, and subject matter experts, to adopt definitions, reporting templates, and metrics for the additional data collection, and to develop protocols to reduce nonresponse rates. The bill would require the commission to address noncompliance with the data collection requirements through existing enforcement conditions and procedures of the motion picture tax credits, as provided. The bill would additionally require the commission to publish an annual compliance report summarizing the collected data, trends in diversity and economic impact, and recommendations for program improvements.