HOUSE BILL 725

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Dennis J. Kintigh

AN ACT

RELATING TO TAXATION; REPEALING THE FILM PRODUCTION TAX CREDIT; LIMITING THE TYPE OF INVESTMENT THAT CAN BE MADE FROM THE SEVERANCE TAX PERMANENT FUND IN FILM PROJECTS; REPEALING SECTIONS OF THE NMSA 1978.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the Severance Tax Bonding Act is enacted to read:

     "[NEW MATERIAL] INVESTMENT IN FILMS TO BE PRODUCED IN NEW MEXICO.--Notwithstanding any other provision of the Severance Tax Bonding Act:

          A. no more than three percent of the market value of the severance tax permanent fund may be invested in film entities;

          B. money in the severance tax permanent fund may be invested in a film entity only as a market rate investment pursuant to Section 7-27-5 NMSA 1978 in the form of a loan at a market rate of interest;

          C. the state investment officer shall only make investments pursuant to this section upon approval of the state investment council and after a determination by the New Mexico film division of the economic development department that the film entity is involved in a film project that:

                (1) is scheduled to be filmed wholly or substantially in New Mexico;

                (2) has been shown to the satisfaction of the New Mexico film division to have a distribution contract in place with a reputable distribution company; and

                (3) while being filmed in New Mexico, will utilize New Mexico residents for a majority of the production crew; and

          D. as used in this section, "film project" means a single-medium or multimedia program, including advertising messages, fixed on film, videotape, computer disc, laser disc or other similar delivery medium from which the program can be viewed or reproduced and that is intended to be exhibited in theaters; licensed for exhibition by individual television stations, groups of stations, networks, cable television stations or other means; or licensed for the home viewing market."

     Section 2. REPEAL.--Sections 7-2F-1, 7-2F-2 and 7-27-5.26 NMSA 1978 (being Laws 2002, Chapter 36, Section 1, Laws 2003, Chapter 127, Section 2 and Laws 2000 (2nd S.S.), Chapter 6, Section 2, as amended) are repealed.

     Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2009.

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