Piracy, IP, Runaway Production, and Arts Funding
PIRACY & INTELLECTUAL PROPERTY RIGHTS
FUND THE PRO-IP ACT - Protect American Jobs
With piracy annually costing the United States an estimated $5.2-billion and 100,000 jobs, we strongly urge the federal government to dedicate resources to enforce antipiracy laws, especially at points of entry into the United States. Piracy of intellectual property (IP) generally and entertainment content specifically is a continuing threat to our local jobs base and economic vitality—and often lowers profit margins of US entertainment exports, thus affecting the US economy. Anti-Piracy efforts must be a major component of international trade discussions, and Congress should resist efforts to unravel the copyright protections contained in the Digital Millennium Copyright Act.
Specifically, we encourage Congress to prioritize full implementation of the Pro-IP Act that was passed in 2008 (The Prioritizing Resources and Organization for Intellectual Property Act of 2008, P.L. 110-403). To date, Congress has provided funding in both FY09 and FY10. These appropriated dollars are making a difference as these agents and prosecutors come on-line in the field across the country. Among the legislation’s key provisions were those that authorized funds for FBI agents and federal prosecutors dedicated to fighting counterfeiting and piracy. For these provisions to be meaningful and effective, they must be adequately funded through the appropriations process.
We respectfully ask that you support continued funding for IP enforcement and provisions authorized by the PRO-IP Act during the FY11 appropriations process.
RUNAWAY PRODUCTION
Runaway production is a serious threat to the California economy. The entertainment industry is a sound economic engine that contributes significantly to the economic well-being of the State. However, as other nations and competing states successfully use tax incentives to entice film production elsewhere, the California economic base is weakened. In a study by the Los Angeles Economic Development Corporation, it was found that as many as 246,000 jobs and $34.3-billion of the California Economy are threatened as other states and nations lure film production away from California. Thirty-eight states now have film incentives. The Hollywood Chamber applauds Governor Schwarzenegger and the California State Legislature for including targeted tax credits to the film and television industry in the State Budget. We welcome the opportunity to work with you to find additional and innovative ways to keep film and television productions in California.
OPPOSE SB 1197 (Calderon): Relating to Tax Credits on Motion Picture Production
The Hollywood Chamber of Commerce, strongly opposes SB 1197 (Calderon) to repeal and amend Sections 17053.85 and 23685 of the Revenue and Taxation Code, relating to tax credits on qualified motion picture production. Last year, the Hollywood Chamber of Commerce along with the entire California film industry – including the California Film Commission, the Labor community, and several State Legislators worked tirelessly to support a comprehensive tax incentive package to bring motion picture production back to California. The resulting law is working as intended. Production is up 18 percent from this same time last year. So far these same incentives have kept 73 productions in California, and each production has generated between 100 and 300 direct jobs.
If passed, S.B. 1197 would threaten the progress made in returning production to California. The bill language while proposing to accelerate tax credits, would ultimately allow those credits to be used up immediately with no guarantee of funding for future years. This would be especially detrimental to smaller film productions that would have been eligible for incentives within the next five years but that are not ready to begin production immediately. Given California’s fiscal problems, if S.B. 1197 were to pass, it is doubtful that the credits would ever be re-instated once they are used up, and public perception would see the film industry as insatiable. Stretching the employment opportunities over a longer period of time is a much wiser solution than the short-sighted amendments proposed in the Calderon legislation.
The Chamber believes that a long-term sustained financial commitment to this vital industry is a wise investment for overall health of the California economy. It is imperative that we continue the State’s efforts to provide targeted tax credits to the film industry to help keep production in California! The Hollywood Chamber of Commerce strongly encourages you to vote no on SB 1197or any similar measure aimed at reducing incentives to this vital industry.
ARTS FUNDING
SUPPORT SB 1076 (Price): Income Tax Check Off: Voluntary Contributions to the California Arts Council
The Hollywood Chamber of Commerce urges your strong and continued support of funding for the Arts, including your support of SB 1076. The bill allows taxpayers to make contributions to the California Arts Council (CAC) by creating a check-off designation on the state personal income tax return for taxpayers to voluntarily contribute to the CAC. This bill will assist the CAC in offsetting the 80 percent reduction to CAC’s budget since 2001-2002. The reduction in CAC’s budget has resulted in reduced arts education programming and less funding for arts programs both in rural and underserved urban areas. By creating a check-off designation on the personal income tax return for taxpayers to voluntarily contribute to the CAC, this bill creates a dedicated source of funding for arts programs throughout the state.
Existing law allows taxpayers to contribute money to one or more of 15 voluntary contribution funds by checking a box on their state income tax return. California law requires contributions made through check-offs to be made from taxpayers’ own resources (not from their tax liability, as is possible on federal tax returns). Check-off amounts may be claimed as charitable contributions on taxpayers’ tax returns during the subsequent year. This bill requires that the check-off meet the minimum contribution requirement of $250,000.