SENATE JOINT MEMORIAL 30

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

INTRODUCED BY

Sue Wilson Beffort

A JOINT MEMORIAL

REQUESTING THE NEW MEXICO FILM DIVISION OF THE ECONOMIC DEVELOPMENT DEPARTMENT TO COLLABORATE WITH THE STATE INVESTMENT OFFICER TO STUDY THE POTENTIAL BENEFIT OF ESTABLISHING A FUND TO PROMOTE, INVEST IN AND FINANCE SMALL, INDEPENDENT FILMS PRODUCED IN NEW MEXICO.

     WHEREAS, New Mexico has made a significant investment in developing a film media industry through the state investment council's film investment program, tax rebates and construction bonds, but this investment has not benefited the small and independent media business; and

     WHEREAS, the New Mexico film investment program lacks guidelines to grant access to investment funds for micro- and low-budget film producers in the state; and

     WHEREAS, according to the on-line research service Screen Finance, the market for small and independent films grew fifty-nine percent between 1991 and 2000, fueling increased production and a proliferation of independent film production companies; and

     WHEREAS, according to Price Waterhouse Coopers, ancillary markets, such as the home video market and high definition and internet-based television, have grown over two hundred percent over the last decade; and

     WHEREAS, nearly seventy percent of all motion pictures are independently produced, and many of these films are micro- budget films; and

     WHEREAS, the profit potential of independently produced, low-budget films makes them attractive to distribution and sales agent companies; and

     WHEREAS, small, independently produced films through such media as digital video discs, digital satellite cable, pay-per-view and network television offer additional markets with minimal risks for investors and producers;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the New Mexico film division of the economic development department be requested to collaborate with the state investment officer to study the potential benefit of establishing a fund to promote, invest in and finance small, independent films produced in New Mexico; and

     BE IT FURTHER RESOLVED that the study identify guidelines for investments in and distributions from the fund for single projects with budgets that do not exceed two million dollars ($2,000,000) or multiple, related projects with budgets that do not exceed five million dollars ($5,000,000); and

     BE IT FURTHER RESOLVED that the study consider the potential for using a program manager to evaluate and make recommendations for funding of these films that does not utilize state dollars, but that is funded from the proceeds of the funded investments; and

     BE IT FURTHER RESOLVED that the study identify how current film investment guidelines could be adapted to preserve protections from risk for the state while promoting investments in small, independent and low-budget projects; and

     BE IT FURTHER RESOLVED that a report of the findings and recommendations of this study be presented to the appropriate interim legislative committee by November 1, 2009; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the New Mexico film division of the economic development department and the state investment officer.

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