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SPONSOR: |
B. Lujan |
DATE TYPED: |
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HB |
919/aHAFC |
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SHORT TITLE: |
Film Production Company In-Plant Training |
SB |
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ANALYST: |
Padilla |
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APPROPRIATION
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Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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NFI |
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(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to HB 8, HB 14, HB 24 and SB 419.
Responses
Received From
Economic
Development Department
Commission
on Higher Education
Department
of Labor
SUMMARY
Synopsis
of HAFC Amendment
The House Appropriations and Finance Committee amendment expands the type of company that would be eligible for in-plant training to include “multimedia” companies (instead of simply “film” companies). It strikes references to an “expedited” process for film companies. The amendment exempts film and multimedia companies from the current statutory limitations on use of the in-plant program (i.e, that the employee be a full-time, permanent employee, that the training is limited to 1,400 hours, etc.).
The amendment requires the IDTP board to
establish rules for the use of in-plant training by film and multimedia companies,
with the following provisions:
1.
Trainees will be pre-approved by EDD’s Film
Division and must be
2. Film
or multimedia production companies will request reimbursement of fifty percent
of the salaries paid to qualified trainees after completion of the production
in
The amendment also allows up to $1,000.0 of the
IDTP fund balances to be used in FY 04 for film and multimedia companies. It allows up to $25.0 to be used for
administrative costs.
Significant
Issues
EDD believes that digital, television and cable
productions will be allowed under the term “multimedia.” Other types of media, including websites,
CD-ROMs and videogames are also considered by many to be multimedia,
however. Does “multimedia” cover these
types of companies?
Current statute limits in-plant training to no
more than 1,400 hours per trainee. This
amendment exempts film and multimedia companies from this provision.
Synopsis
of Original Bill
House Bill 919 amends statute to expand the
types of companies that are eligible for EDD’s Industrial
Development Training Program to include film production companies. The bill requires the Industrial Training
Board to promulgate rules to allow the program to be used by film production
companies and to provide an expedited approval process.
Significant
Issues
EDD’s
Industrial Development Training Program (IDTP), more commonly known as in-plant
training, is a key incentive offered to new and expanding businesses in
The bill will require a new approach to
management of the IDTP program and use of IDTP funds. By their nature, according to EDD, film
production jobs are not permanent, full-time jobs. Film production companies hire employees as
needed for a particular project. The
IDTP manual, however, says that “trainees must be full-time, year-round
employees to participate in the program and must be guaranteed full-time
employment” with the company.” This is
consistent with statute. Including film
jobs under the IDTP program will require a change to this approach and possibly
an amendment to current statute.
As currently managed, the program reimburses eligible
employers for the training costs of new employees. It appears as if this method will have to
change if IDTP funds will now be used for prospective employees of film
production companies.
This bill could alter the nature of the IDTP
program from a business incentive tied to specific, newly-created jobs to a
vocational training program for future potential film employees. CHE notes that the IDTP board recently
discussing whether funding for the film industry might be better served through
another funding mechanism. It was
suggested that other programs through DOL might better address workforce needs
of the film production industry.
FISCAL IMPLICATIONS
This bill has no direct fiscal implications on
EDD. By allowing film production jobs to be including in IDTP, there may be
fewer funds available for other companies.
ADMINISTRATIVE IMPLICATIONS
EDD reports that the Film Division would be
responsible for the creation of a quick-response classroom training
program. The Film Division would handle
the tasks of qualifying and training the participants.
CONFLICT, DUPLICATION, COMPANIONSHIP,
RELATIONSHIP
HB 8 appropriates $15,000.0 to EDD for the
in-plant training program. HB 15
appropriates $20,000.0 million for the program.
SB 419 requires that recipients of in-plant
training funds provide health insurance coverage to their employees.
HB 24 would allow in-plant training funds to be
used for part-time employees.
EDD believes this bill would help expand film
production in
POSSIBLE QUESTIONS
1. If
film production jobs are not full-time, permanent jobs, should statute be
amended to allow the in-plant training program to train part-time,
non-permanent positions?
2. How will EDD implement what appears to be a vocational training course? Would it be better to ask the Department of Labor or a college or university to take on this responsibility?
3. Are there other business that are not currently eligible for in-plant training that might also want to have access to the program?