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The Oregon Administrative Rules contain OARs filed through March 15, 2014
 
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OREGON FILM AND VIDEO OFFICE

 

DIVISION 6

INDIGENOUS OREGON PRODUCTION INVESTMENT FUND
PRODUCTION SPENDING REBATES

951-006-0000

Purpose

The purpose of these rules is to provide guidance for the administration of the i-Oregon Production Investment Fund film and television production rebates as authorized by SB863. The Indigenous Oregon Production Investment Fund was authorized by the 2009 legislature to encourage smaller budget film and television production in Oregon, thereby increasing job opportunities for Oregonians in the film and television industry.

Stat. Auth: ORS 284.335 & 284.368
Stats. Implemented: SB 863
Hist.: FVO 2-2009, f. 11-12-09 cert. ef. 1-1-10

951-006-0001

Definitions

(1) “Qualifying film or television production” means a movie produced for release to theaters, video or the internet or a television movie or one or more episodes of a single television series, the production of which will result in the spending of at least $75,000.00 and less than $750,000 directly to Oregon resident vendors or for work done in Oregon. “Qualifying film or television production” does not include the production of a commercial or one or more segments of a newscast or sporting event.

(2) “i-OPIF” means indigenous-Oregon Production Investment Fund created by SB 863.

(3) “Filmmaker” means a person who owns a television or film production company.

(4) “Local filmmaker” means a person who owns a television or film production company that has its principal place of business in this state.

(5) “Resident of this state” has the meaning given that term in ORS 316.027.

(6) “OFVO” means the Oregon Film & Video Office created by ORS 284.305.

Stat. Auth: ORS 284.335 & 284.368
Stats. Implemented: SB 863
Hist.: FVO 2-2009, f. 11-12-09 cert. ef. 1-1-10

951-006-0005

Program Application

A person proposing to produce a qualifying film or television production and wishing to receive a production spending rebate from the i-OPIF with respect to the production shall submit an application to the Oregon Film and Video Office for an eligibility determination. Unless otherwise permitted by the OFVO, the application must be submitted prior to the commencement of production. Incomplete applications will not be accepted.

Stat. Auth: ORS 284.335 & 284.368
Stats. Implemented: SB 863
Hist.: FVO 2-2009, f. 11-12-09 cert. ef. 1-1-10

951-006-0010

Eligibility Determination

(1) Except as set forth in sections (2) and (3), the OFVO will approve the applications for eligibility for productions that satisfy the following requirements:

(a) The production satisfies the non-monetary portions of the “qualifying film or television production” definition.

(b) Projected spending in Oregon on the production is reasonably anticipated to equal not less than $75,000 and less than $750,000.

(c) The local filmmaker includes, with its application, a letter to the OFVO stating the local filmmaker’s intent to film the production in Oregon and its willingness and ability to enter into a contract with the OFVO setting forth the terms and conditions of the rebate.

(d) Upon request of the Film Office, provide proof of production insurance.*

REQUIRED:

General Liability

 General Liability aggregate -- $1,000,000

 GL Limit Per Occurrence  -- $1,000,000

 Products Completed Operations -- $1,000,000

 Personal & Advertising Injury -- $1,000,000

 Fire Legal Liability -- $50,000

 Medical Payments -- $5,000

 Blanket Additional Insured’s -- $ included

 Waiver of Subrogation -- $ included

Automobile

 Hired & Non-Owned Liability -- $1,000,000

 Hired/Non-Owned Physical Damage -- $500,000

Production Package

 Third Party Property Damage -- $500,000

Worker’s Compensation (OR State Minimums)

 Bodily Injury by Accident -- $500,000 Each Accident

 Bodily Injury by Disease -- $500,000 Policy Limit

 Bodily Injury by Disease -- $500,000 Each Employee

RECOMMENDED:

Production Package

 Negative Film or Videotape -- Included

 Faulty Stock, Camera & Processing -- Included

 Extra Expense -- $25,000

 Civil Authority -- $25,000

* Some filming locations may require additional insurance, or higher limits.

(e) Name and contact information for Payroll company.

(2) The following productions are not eligible:

(a) Productions of a local filmmaker that has, or whose principals have, a verifiable history of previous production problems that create significant doubt, as determined by the OFVO, regarding the local filmmaker’s ability to complete a production in Oregon successfully. The production problems may include, but are but not limited to:

(i) Unpaid financial obligations;

(ii) Crew mistreatment; or

(iii) Damage to locations that the local filmmaker did not repair upon completion of the production.

(b) Productions with respect to which the local filmmaker withdraws its application for eligibility determination.

(c) Productions whose applications for eligibility are filed at times when there are not sufficient funds available in the Oregon Production Investment Fund to pay the anticipated rebates.

(d) Productions that the OFVO determines are unlikely to further the purposes of the i-Oregon Production Investment Fund.

(e) Productions must pay any employee minimum wage as set forth in (Oregon minimum wage rule, ORS 653.025) or meet the requirements of applicable Union Guild contracts the production has entered into.

(f) Productions that employ any individual as “intern” without that individual receiving academic credit. See the Oregon bureau of Labor and Industries for additional information: www.boli.state.or.us/BOLI/TA/T_FAQ_Interns.shtml

(g) Productions determined to be ineligible may appeal to the OFVO Board, upon written application.

(3) If the OFVO receives multiple relatively concurrent applications for eligibility determinations and there are not sufficient funds available in the i-Oregon Production Investment Fund to pay anticipated rebates with respect to all of the productions, the OFVO will determine which applications to approve and which to deny based on the following factors:

(a) Satisfaction of requirements of section (1)

(b) Chronological order of receipt of application

(c) Amount of production spending anticipated in Oregon

(d) Number of film workers expected to be hired

(e) Experience level of local filmmaker

(f) Reputation of the local filmmaker and its principals

(g) Estimated production start date

(h) Other benefits to Oregon, including but not limited to promotional value, long-term financial benefits, contribution to development of Oregon’s crew and talent base or production industry infrastructure.

(i) Whether the production company has contributed to the Oregon Production Investment Fund.

(j) Whether the local filmmaker intends to pay prevailing industry rates and provide health, retirement and other benefits.

(4) Upon approval of an application for eligibility with respect to a production, the local filmmaker must enter into a contract with OFVO stipulating the local filmmaker’s intent to film the production in Oregon and setting forth the terms and conditions of the rebate. If the local filmmaker and the OFVO have not entered into the contract within 30 days of the local filmmaker’s eligibility approval, the local filmmaker’s eligibility will be automatically revoked unless the OFVO, in its discretion, extends the deadline for contract execution.

Stat. Auth: ORS 284.335 & 284.368
Stats. Implemented: SB 863
Hist.: FVO 2-2009, f. 11-12-09 cert. ef. 1-1-10

951-006-0020

Payment of Rebates

(1) Regardless of whether the production is otherwise a qualifying film or television production or whether the OFVO determined the production eligible, rebates from the i-Oregon Production Investment Fund will only be paid pursuant to and upon the terms and conditions of a contract entered into between the OFVO and the local filmmaker pursuant to OAR 951-002-0010(4). If no contract is entered into, no rebates will be paid.

(2) In addition to any other terms and conditions that the OFVO considers necessary or desirable, contracts for i-Oregon Production Investment Fund rebates will usually include the following:

(a) A requirement that the local filmmaker submit to the OFVO, after completion of the production work in Oregon, financial and other records sufficient to verify that the production satisfied the expenditure requirement for a rebate.

(b) Authorization for the OFVO to deduct from the rebate the costs reasonably incurred by the OFVO in verifying the production expenditures in Oregon, including but not limited to, the costs incurred by OFVO in obtaining an outside accounting review, audit, or both, of the financial and other records evidencing the expenditures. The OFVO will usually submit the expenditure documentation to an outside accounting firm for a review after the OFVO has completed its review. Based on the advice of the outside accounting firm, the OFVO may require an audit of the production’s financial records.

(c) Provisions conditioning OFVO’s obligation to pay the rebate on the local filmmaker’s compliance with the terms of the contract and satisfactory verification of production spending in Oregon of at least US $75,000 but less than $750,000.

(d) Provisions conditioning OFVO’s obligation to pay the rebate on the production spending in Oregon after the date that OFVO approves the production’s eligibility, of at least US $75,000 but not more than $750,000.

(e) Local filmmaker to provide vendor lists with final accounting.

(f) Local filmmaker to provide promotional materials (such as photos, trailers, electronic press kits) to OFVO. OFVO may use such materials strictly for non profit purposes such as for archival, governmental relations and marketing purposes. OFVO shall not grant usage to any other entity and shall request additional permission prior to any use other than those listed. OFVO understands that talent contracts may prohibit use of actors’ images without express permission and agrees to abide by such agreements when advised of the production company of said limitations.

(g) The local filmmaker must have spent a minimum of 80 percent of the film’s payroll on employees who are residents of this state.

(h) Local filmmaker to provide final crew list along with proof of residency for each crew member. Proof of residency may include ODL, or other legal documents approved by the Director of the Oregon Film & Video Office, or may be provided through a payroll report that shows residency state.

(i) The local filmmaker must have employed or contracted with a public accountant certified under ORS 673.040 for the provision of payroll services.

(j) Provide to OFVO, proof of completion of the film in the form of a rough cut of the film, or submission of a selection of dailies, either of which will demonstrate original script synopsis. Other proof of completion subject to approval of the Film Office.

(k) List of interns, and the academic institutions, including contact information, under which interns are receiving academic credit.

Stat. Auth: ORS 284.335 & 284.368
Stats. Implemented: SB 863
Hist.: FVO 2-2009, f. 11-12-09 cert. ef. 1-1-10

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