Section 1-3101. DETERMINATION OF FILM DC GRANT PROGRAM ELIGIBILITY

 

3101.1The Director of the OMPTD determines whether particular motion picture and television productions and the expenditures associated with those productions qualify for incentives under the Act. The recipient of the grant will receive an amount not to exceed the lesser of 10% of qualified expenses or 100% of the sales and use taxes paid to the District on the qualified expenses. Grant funds will be disbursed following OMPTD’s receipt and approval of the final certified accounting and cost report of production expenditures prepared by the production company as required by §3101.6(e).

 

3101.2In evaluating whether a Project is eligible for grant funding, the Director of the OMPTD will take into consideration the mandatory and discretionary criteria set forth in this section. The OMPTD shall require all applicants to meet the mandatory criteria. The OMPTD will be entitled to give priority or more or less weight to any of the discretionary criteria based on its view of the current needs of the District. The discretionary criteria are not intended to be used in a mathematical equation; consequently, mere compliance with a majority of these discretionary criteria does not guarantee eligibility for Film DC Grant Program funds. The OMPTD may also consider other factors in determining whether a particular project is eligible for grant funding, provided that the additional factors are reasonably related to the goals of the Act.

 

3101.3MANDATORY CRITERIA

 

To be eligible for grant funding, the applicant must:

 

(a)expend at least $500,000 in the District on a qualified film project; and

 

(b)actively film in the District for a period of five (5) or more days.

 

 

3101.4DISCRETIONARY CRITERIA

 

To determine if a production qualifies for grant funding, the OMPTD will consider:

 

(a)the percentage of production to be filmed in the District;

 

(b)the extent to which the production has the necessary financing in place to begin production;

 

(c)how much of the production budget will be spent in the District;

 

(d)the viability of the film distribution plan, including the date the master will be released for distribution;

 

(e)if there is an acceptable completion bond and insurance policy in place with industry recognized providers;

 

(f)the credentials and references of the production company and its principals and producers;

 

(g)the extent to which the production schedule follows a reasonable timeline leading to completion of the project;

 

(h)the specific film locations planned in the District; and

 

(i)the extent to which the applicant has complied with OMPTD application and information disclosure requirements.

 

Priority will be given to productions that hold the most promise for benefiting the District by hiring District residents, using local suppliers, being bonded and insured, and having a national distribution plan in place.

 

3101.5STATUTORY DISQUALIFICATION

 

Any production company that fails to expend at least $500,000 in the District and film for five (5) days or more in the District shall be statutorily disqualified from receiving grant funds.

 

3101.6PROGRAMMATIC DISQUALIFICATION

 

Production companies may be disqualified from the Film DC Grant Program during the application process or after the Grant has received preliminary approval, based on programmatic considerations, at the discretion of the Director of the OMPTD, including, but not limited to:

 

(a)Failure to begin production activities on the date specified in the Qualifying Production Letter;

 

(b)A delay in principal photography that exceeds 30 days;

 

(c)Failure to file any required reports;

 

(d)Failure to pay industry standard wages;

 

(e)Failure to submit, upon the conclusion of filming in the District, a certified accounting and cost report of production expenditures, prepared in accordance with generally accepted accounting principles, that is performed by an independent certified public accountant selected and paid for by the production company prior to the reimbursement of qualified expenditures. The production company is not precluded from engaging its regular independent certified public accountant, if applicable, to perform this activity;

 

(f)Engaging in economic transactions, business relationships and business structures without substance for the purpose of increasing the amount of the incentives or altering the appearances of expenditures or vendors in order to meet the qualifications for the incentives;

 

(g)Failure to practice responsible production practices or adhere to the Code of Conduct as specified in the California Film Commission’s Filmmaker’s Code of Professional Responsibility; or

 

(h)Lack of available funding.

 

source

Final Rulemaking published at 54 DCR 6061 (June 22, 2007).