Committee sends bill on film fund to House

Lawmakers took another step Friday toward boosting the state's commitment to land more film and television productions.

The House Workforce Services and Community and Economic Development Standing Committee passed HB17 along for wider debate by the House. The bill appropriates $3 million from the state's general fund to a new Motion Picture Incentive Fund, a dedicated fund to woo film and TV projects to Utah.

The bill's sponsor, Rep. Sheryl Allen, R-Bountiful, said the fund will help boost economic development in the state, help Utah compete in the lucrative film and television business and help enhance the state's "brand."

"The purpose is to give some incentives to keep an industry that has been vital in the past to Utah, that is now becoming less prominent," she said. "The reason it is becoming less prominent is because the industry looks to incentives. They are largely guided, as many of our industries are, by incentives."

HB17 proposes that two-thirds of the $3 million be used to attract within-the-state production of television series and made-for-TV movies. The remaining one-third will provide incentives for in-state movie productions, including feature and independent films. The fund will be administered by an administrator under the direction of the Utah Board of Business and Economic Development, which also oversees the state's Industrial Assistance Fund. The IAF is used to encourage businesses to expand operations or relocate to Utah.

Under HB17, an incentive may not exceed $100,000 per episode or $750,000 per funding cycle for a television series, or $500,000 per motion picture production.

Leigh Von Der Esch, Utah Film Commission director, emphasized that the money is in the form of post-performance incentive grants, meaning that "you don't give away the 10 cents until the 90 cents is spent" by the TV or film production company.

During a pilot program, funded last year by $1 million from the state's IAF, Von Der Esch said the estimated return on investment was $4 to $6 on every incentive dollar.

"We think the return on investment is good," Von Der Esch said. "We think that this will be very important for economic development."

In addition to the money spent by production companies, advocates for HB17 said the economic effects of the TV and film production industry in Utah include jobs — for Utah actors and artists, technicians and crew members — increased visibility for the state, and even indirectly to other industries.