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The Oregon Administrative Rules contain OARs filed through August 15, 2016
 
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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 portion of the Oregon Production Investment Fund that is to be used for film and television production expense reimbursement for local filmmakers and local media production services companies as authorized by ORS 284.368(3).

Stat. Auth: ORS 284.335 & 284.368
Stats. Implemented: ORS 284.367 & 284.368
Hist.: FVO 2-2009, f. 11-12-09 cert. ef. 1-1-10; FVO 1-2016, f. & cert. ef. 6-21-16

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, or a media production services project produced by a local media production services company, the production of which will result in the spending of at least $75,000.00 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) “iOPIF” means the part of the Oregon Production Investment Fund created by ORS 284.367 that is to be used to provide expense reimbursement for local film makers and local media production services companies pursuant to ORS 284.367(4).

(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) “Local media production services company” means a media production services company that has its principal place of business in this state.

(6) “Media production services” includes postproduction services and interactive video game development. “Media production services” does not include the production of a commercial or one or more segments of a newscast or sporting event.

(7) “Media production services company” means a person who is engaged in media production services.

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

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

(10) "Principal place of business" means the office, in or out of this state, where the principal executive offices of a domestic or foreign corporation are located and where the company identifies as its singular “corporate headquarters.”

Stat. Auth: ORS 284.335 & 284.368
Stats. Implemented: ORS 284.368
Hist.: FVO 2-2009, f. 11-12-09 cert. ef. 1-1-10; FVO 1-2016, f. & cert. ef. 6-21-16

951-006-0005

Program Application

A local filmmaker proposing to produce a qualifying film or television production or a local media production services company that wishes to receive reimbursement for production spending from the iOPIF with respect to the production shall submit an application to the OFVO 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: ORS 284.368
Hist.: FVO 2-2009, f. 11-12-09 cert. ef. 1-1-10; FVO 1-2016, f. & cert. ef. 6-21-16

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.

(c) The local filmmaker or local media production services company includes, with its application, a letter to the OFVO stating its intent for production to take place in Oregon and its willingness and ability to enter into a contract with the OFVO setting forth the terms and conditions of reimbursement.

(d) Upon request of the OFVO, provide proof of production insurance. The example below shows industry standards for an average live action film/television production. Varying coverage amounts may be approved by the OFVO based on industry standards for the specific type of project for which the reimbursement is requested.

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

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:

Negative Film or Videotape — Included

Faulty Stock, Camera & Processing: Included

Extra Expense — $25,000

Civil Authority — $25,000

(e) Name and contact information for payroll company.

(2) The following productions are not eligible:

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

(A) unpaid financial obligations;

(B) crew mistreatment; or

(C) damage to locations that the local filmmaker or local media production services company did not repair upon completion of the production.

(b) A production with respect to which the local filmmaker or local media production services company withdraws its application for eligibility determination.

(c) A production that the OFVO determines is unlikely to further the purposes of the iOPIF.

(d) The production must pay its employees minimum wage as set forth in the Oregon minimum wage rule (ORS653.025) or meet the requirements of applicable union contracts the production has entered into.

(e) A production that employs any individual as an “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. A production determined to be ineligible may appeal to the Film and Video 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 iOPIF to pay the requested expense reimbursements 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 production workers expected to be hired

(e) experience level of local filmmaker or local media production services company

(f) reputation of the local filmmaker or local media production services company 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 local filmmaker or local media production services company has contributed to the iOPIF.

(j) Whether the local filmmaker or local media production services company 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 or local media production services company must enter into a contract with OFVO stipulating its intent to make the production in Oregon and setting forth the terms and conditions of the reimbursement. If the local filmmaker or local media production services company and the OFVO have not entered into the contract within 30 days of its eligibility approval, the local filmmaker or local media production services company’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: ORS 284.368
Hist.: FVO 2-2009, f. 11-12-09 cert. ef. 1-1-10; FVO 1-2016, f. & cert. ef. 6-21-16

951-006-0020

Payment of Rebates

(1) Regardless of whether the production is otherwise a qualifying film or television production or a qualified local media production or whether the OFVO determined the production eligible, reimbursement of expenses from the iOPIF will only be paid pursuant to and upon the terms and conditions of a contract entered into between the OFVO and the local filmmaker or local media production services company pursuant to OAR 951-006-0010(4). If the local filmmaker or local media production services company does not enter into a contract with OFVO, the local filmmaker or local media production services company will not receive any reimbursement of expenses from OFVO.

(2) In addition to any other terms and conditions that the OFVO considers necessary or desirable, contracts for iOPIF reimbursements will usually include the following provisions:

(a) The local filmmaker or local media production services company must 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 reimbursement.

(b) Authorization for the OFVO to deduct from the reimbursement 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) OFVO’s obligation to make any reimbursement of expenses is conditioned on (i) availability of funds in the iOPIF to pay for the requested reimbursement and (ii) compliance by the local filmmaker or local media production services company with the terms of the contract and satisfactory verification of production spending in Oregon of at least US $75,000.

(d) The local filmmaker or local media production services company must provide to OFVO vendor lists with final accounting.

(e) The local filmmaker or local media production services company must provide promotional materials (such as photos, trailers, and electronic press kits) to OFVO. OFVO may use such materials strictly for its own archival, governmental relations and marketing purposes. OFVO shall not grant usage to any other entity or charge for any such usage 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 limitations when advised in writing of said limitations.

(f) A minimum of 80 percent of the production’s employees and independent contractors must be residents of Oregon. Background performers may not be counted toward meeting this requirement.

(g) The local filmmaker or local media production services company must provide the final crew list along with proof of residency for each crew member. Proof of residency may include an Oregon driver’s license, or other legal documents approved by the Director of the OFVO, or may be provided through a payroll report that shows state of residency.

(h) The local filmmaker or local media production services company must employ or contract with a public accountant certified under ORS 673.040 for the provision of payroll services.

(i) The local filmmaker or local media production services company must provide OFVO proof of completion of the production in the form of a rough cut of the film/television/media production, or submission of a selection of dailies, either of which will demonstrate original script synopsis. Other proof of completion is subject to approval of the OFVO.

(j) The local filmmaker or local media production services company must provide a list, if utilized, of interns and the academic institutions, including contact information, from which such interns are receiving academic credit.

(k) Productions receiving rebates will include the approved “Oregon Film” logo and/or the “Oregon Made” logo in the final end crawl or packaging of the project wherever allowed by Filmmaker’s contracts with its clients.

(3) Payment of iOPIF reimbursements are subject to funds being available for the iOPIF program.

Stat. Auth: ORS 284.335 & 284.368
Stats. Implemented: ORS 284.368
Hist.: FVO 2-2009, f. 11-12-09 cert. ef. 1-1-10; FVO 1-2016, f. & cert. ef. 6-21-16

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