Legislature(2011 - 2012)BARNES 124
02/15/2011 10:15 AM House ECON. DEV., TRADE & TOURISM
| Audio | Topic |
|---|---|
| Start | |
| Discussion on Planned Closure of the Kenai Liquefied Natural Gas Plant | |
| HB67 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 67 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 67-FILM PRODUCTION TAX CREDIT
11:21:17 AM
CHAIR HERRON announced that the next order of business would be
HOUSE BILL NO. 67, "An Act relating to transferable film
production tax credits; and providing for an effective date by
amending the effective dates of secs. 3 and 4, ch. 63, SLA
2008."
REPRESENTATIVE FOSTER introduced Amendment 2, labeled 27-
LS0356\A.2, Bullock, 2/14/11, which read:
Page 2, following line 5:
Insert a new bill section to read:
"* Sec. 4. AS 44.33.235(c) is amended to read:
(c) In determining the amount of the tax credit,
the percentage provided by (b) of this section shall
be increased by the film office based on the following
criteria:
(1) an additional 10 percent of qualified
expenditures that are wages paid to Alaska residents;
(2) an additional four [TWO] percent of
qualified expenditures made in a rural area; and
(3) an additional two percent of qualified
expenditures made in the state between October 1 and
March 30."
Renumber the following bill sections accordingly.
REPRESENTATIVE FOSTER explained the purpose of the amendment is
to increase the tax credit for the rural area incentive from 2
percent to 4 percent. He said this will address the additional
operational costs and logistical issues incurred when filming in
communities of rural Alaska.
11:22:48 AM
REPRESENTATIVE OLSON introduced Amendment 3 labeled 27-
LS0365\A.3, Bullock, 2/14/11, which read:
Page 3, following line 9:
Insert a new bill section to read:
"* Sec. 5. AS 44.33.239(7) is amended to read:
(7) "rural area" means a community with a
population of 1,500 or less or a community with a
population of 6,500 [5,500] or less that is not
connected by road or rail to Anchorage or Fairbanks."
Renumber the following bill sections accordingly.
REPRESENTATIVE OLSON explained the purpose of the amendment is
to increase the population of an identified rural area from
5,500 to 6,500.
11:23:21 AM
CHAIR HERRON opened public testimony.
11:23:40 AM
PETE KALAMARIDES said he was the local captain on the movie
Everybody Loves Whales, and was employed with a crew of 30-40
others. Mr. Kalamarides expressed his support of the bill and
the proposed amendment, because the movie was a very good
economic stimulus for Anchorage, and the cast was welcomed
throughout town.
11:24:43 AM
CINDY DRAPER, Rentals Manager, ABC Motorhome and Car Rental,
Inc., said her company rented motorhomes during the filming of
Ghost Vision and Everybody Loves Whales. These contracts added
over 1,500 additional rental days to their rental season and
made a "significant boost to, you know, a fairly small company."
Ms. Draper said she was in favor of extending the tax credits.
11:25:41 AM
BRICE HABERGER informed the committee he is a life-long Alaskan.
He referred to his past testimony on legislation supporting the
creation of jobs. Mr. Haberger worked on Everybody Loves Whales
as a production scout and as a grip on Ghost Vision. He
expressed his belief that the bill will allow Alaska to grow a
crew base that will rival that of any other state, and one that
is technically proficient and knowledgeable. He pointed out
that the private sector has begun training Alaska residents for
work in this industry.
11:28:03 AM
REPRESENTATIVE FOSTER asked whether Mr. Haberger had seen the
films screened at the Alaska Federation of Natives (AFN) events.
MR. HABERGER said no.
11:28:21 AM
REPRESENTATIVE FOSTER urged support for the work done for AFN by
students in the Lower Yukon region, and other areas of rural
Alaska.
REPRESENTATIVE TUCK asked how much work the two productions
generated.
11:28:52 AM
MR. HARBEGER said he worked for about one week on each
production. In further response to Representative Tuck, he
explained that after graduating from college in film, his
classmates looked for work in Los Angeles, but he is pursuing
his career in Alaska.
11:30:09 AM
TED SMITH said he was a member of the cast of On the Ice, a
movie that was filmed in Barrow. The movie was screened at the
Sundance Film Festival and received excellent reviews. Mr.
Smith said he was in favor of the bill, because movies create an
opportunity to introduce the cultures of rural Alaska.
11:31:47 AM
GARY ZIMMERMAN, General Manager-Statewide, Avis Rent-A-Car
(Avis), stated his company employs 110 residents across the
state and is in favor of HB 67. There is a benefit to all
facets of the economy from filming movies on location. He
pointed out that a portion of his company's revenue is the state
vehicle rental tax that goes to the state, and the municipal
taxes that support communities. Mr. Zimmerman opined that
Alaska needs to diversify its economy through a long-term
commitment to the film industry.
11:34:27 AM
MAYA SALGANAK, Assistant Professor of Film/Video Arts, Director
of Film Studies, University of Anchorage Fairbanks, said her
responsibility is to help guide students interested in working
in the film industry. The University of Alaska (UA) Board of
Regents is reviewing a proposal on whether to begin a Bachelor
of Arts (BA) degree program in film by 2013. Since the
establishment of the Alaska Film Office, Division of Economic
Development, Department of Commerce, Community & Economic
Development (DCCED), there has been amazing growth in film and
she has been able to place students with dozens of film
companies from all over the world. Students have worked in
television commercials and feature films, in venues from
Anchorage to Barrow, and the program has received funding from
various sources. Student enrollment in the UAF film program and
related courses has grown by 60 percent in the last four years.
Ms. Salganek said tax credits are the first consideration when
the film industry decides on a location; in fact, without the
incentive program the long-term growth of the industry is
threatened, even if the university supports the availability of
film crews through a BA program. She advised that extending the
incentive program will solidify the state's ability to bring a
"full-force infrastructure into the state."
11:37:36 AM
GREG KESSLER, Alaska Commercial Director, Totem Ocean Trailer
Express, Inc. (TOTE), stated that in the past year his company
shipped cargo for two productions, Everybody Loves Whales and
Ghost Vision. In fact, TOTE moved about 35 shipments north and
south for the movie production companies, and is in the
preparation stages for future shipments. His company and others
will benefit from the reauthorization of the tax credits, which
will continue to make Alaska an attractive place for the film
industry, and bring new and diversified business opportunities
to the state.
11:39:38 AM
KAREN TALLENT, Studio Teacher, said she worked on three film
projects as a studio teacher. As required by state law, a
studio teacher provides education for, and ensures the legal
protection and safety of, minors who are involved in the
entertainment industry. Ms. Tallent expressed her support of
the bill saying her experience was that the film industry
provides jobs for film crews, economic opportunities, and
marketing promotion for Alaska tourism, products, and
businesses. She is now a studio teacher full-time because of
the increased interest in filming in Alaska due to the tax
credits. Forty-five other states, Canada, and other countries
have incentive programs in place and it is important for Alaska
to have a viable and competitive program. Ms. Tallent saw at
least 100 crew and 2,000 extras employed in Everybody Loves
Whales and related that the out-of-state cast shopped and
traveled while in Alaska. She concluded the film industry is a
multi-million dollar industry that will diversify the economy,
provide jobs, and increase tourism.
11:45:02 AM
[HB 67 was heard and held.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| EDT - News Items on Pending Kenai LNG Plant Closure.pdf |
HEDT 2/15/2011 10:15:00 AM |
|
| EDT - LNG Plant Closure Hearing - List of Participants.pdf |
HEDT 2/15/2011 10:15:00 AM |
|
| HB 67 - Letters of Support 021411.pdf |
HEDT 2/15/2011 10:15:00 AM |
HB 67 |
| EDT 2.15.11 RCA Response to Committee Inquiry Cook Inlet Gas Contracts.pdf |
HEDT 2/15/2011 10:15:00 AM |