SENATE BILL 383

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Shannon Robinson

AN ACT

RELATING TO ECONOMIC DEVELOPMENT; CREATING THE NEW MEXICO FILMMAKERS PRODUCTION FUND TO PROVIDE LOANS TO ELIGIBLE FILMMAKERS FOR THE PURPOSE OF ECONOMIC DEVELOPMENT; MAKING APPROPRIATIONS.

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

     Section 1. NEW MEXICO FILMMAKERS PRODUCTION FUND CREATED--ECONOMIC DEVELOPMENT PURPOSE--LOANS--CONDITIONS.--

          A. The purpose of this act is to create new job opportunities by providing zero interest loans for production funding for local filmmakers and underrepresented minority filmmakers for films in New Mexico.

           B. The "New Mexico filmmakers production fund" is created in the state treasury. Money in the fund may be used by the department to make zero interest loans to local filmmakers and underrepresented minority filmmakers for films in New Mexico.

          C. The secretary shall employ a professional film advisor knowledgeable about the New Mexico independent and minority filmmaking community, financing and distribution to advise the secretary on the selection of projects.

          D. Earnings on the balance in the fund shall be credited to the fund. Balances in the fund at the end of any fiscal year shall not revert to the general fund.

          E. The department shall administer the fund and shall make loan disbursements pursuant to this section. The secretary shall adopt rules to govern the application procedure and requirements for disbursing loans, including the requirements pursuant to this section for determining the eligibility and priority of film productions.

          F. Receipts from the repayment of loans shall be deposited in the fund by the department.

          G. Money in the fund is appropriated to the department to carry out the provisions of this section.

          H. Eligibility criteria adopted by the secretary for loans issued from the fund shall:

                (1) be based on a point system to prioritize productions;

                (2) be subject to yearly review by the governor's council on film and media industries;

                (3) allow producers the option to select a pre-approved agreement for the state's post break-even revenue participation in the project of a contingent deferral of one hundred basis points per year of the outstanding loan amount until repayment to be paid prior to any net profits to third parties and five percent of post break-even revenue or to negotiate an agreement with the state;

                (4) require a full guaranteed repayment of one hundred percent of the principal, pursuant to a letter of credit from a banking institution rated A- or better, by entities with a BBB credit rating or better or by cash-equivalent instruments held in an interest-bearing secure account;

                (5) include default provisions that are limited to fraud and material representation, nondelivery of film, nonpayment of loan when due and nonpayment of profit participation when collected, earned and due;

                (6) require completion bonding; and

                (7) require that at least:

                     (a) eighty percent of the principal photography be made in New Mexico;

                     (b) sixty percent of the payroll be New Mexico payroll; and

                     (c) two of the three principal above-the-line participants be New Mexico residents or underrepresented minorities.

          I. As used in this section:

                (1) "department" means the economic development department; and

                (2) "secretary" means the secretary of economic development.

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