HOUSE BILL 415
50th legislature - STATE OF NEW MEXICO - first session, 2011
INTRODUCED BY
Antonio "Moe" Maestas
AN ACT
RELATING TO THE MOTION PICTURE INDUSTRY; CREATING THE NEW MEXICO FILM COMMISSION; PROVIDING FOR SEVERANCE TAX PERMANENT FUND INVESTMENT IN SMALL-BUDGET NEW MEXICO FILMS.
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 SMALL-BUDGET NEW MEXICO FILMS--NEW MEXICO FILM COMMISSION CREATED--DUTIES.--
A. The "New Mexico film commission" is created. The commission is comprised of five members to be appointed by the governor. One member shall be a New Mexico independent film producer; one member shall be from a New Mexico business that provides goods and services to New Mexico independent film producers; one member shall be from a nonprofit New Mexico organization committed to the development of the film or television industry in New Mexico; and two members shall be from New Mexico film trade organizations. Members shall serve three-year terms but shall be initially appointed for staggered terms so that no more than two members' terms expire in any one year. The commission shall meet as necessary to carry out its duties. Members may receive per diem and mileage for travel within New Mexico as provided in the Per Diem and Mileage Act, but shall receive no other compensation, perquisite or allowance. The commission is administratively attached to the economic development department, and its activities shall be coordinated with the New Mexico film division of the economic development department.
B. The New Mexico film commission shall review investment proposals pursuant to this section and make recommendations to the state investment officer.
C. As a part of the severance tax permanent fund that may be invested in a New Mexico film project pursuant to Section 7-27-5.26 NMSA 1978, an investment pursuant to this section may be made in a small-budget New Mexico film project.
D. If an investment is made pursuant to this section, it may be for between one hundred fifty thousand dollars ($150,000) and two million dollars ($2,000,000) in any one small-budget New Mexico film project.
E. The state investment officer shall make investments pursuant to this section only upon approval of the council after a review by the private equity investment advisory committee and a review and recommendation by the New Mexico film commission. The state investment officer may make debt or equity investments pursuant to this section only in New Mexico film projects that:
(1) are filmed wholly or substantially in New Mexico;
(2) have shown to the satisfaction of the commission that a distribution contract is in place with a reputable distribution company;
(3) have agreed that, while filming in New Mexico, a majority of the production crew will be New Mexico residents;
(4) have posted a completion bond that has been approved by the commission; provided that a completion bond shall not be required if the fund or project is guaranteed pursuant to Paragraph (5) of this subsection; and
(5) have obtained a full, unconditional and irrevocable guarantee of repayment of the invested amount in favor of the severance tax permanent fund:
(a) from an entity that has a credit rating of not less than Baa or BBB by a national rating agency;
(b) from a substantial subsidiary of an entity that has a credit rating of not less than Baa or BBB by a national rating agency;
(c) by providing a full, unconditional and irrevocable letter of credit from a United States incorporated bank with a credit rating of not less than A by a national rating agency; or
(d) from a substantial and solvent entity as determined by the council in accordance with its standards and practices; or
(6) if not guaranteed pursuant to Paragraph (5) of this subsection, have obtained no less than one-third of the estimated total production costs from other sources as approved by the state investment officer.
F. As used in this section, "small-budget New Mexico film" means a single media or multimedia program, including advertising messages, that is fixed on film, videotape, computer disc, laser disc or other similar delivery medium from which the program can be viewed or reproduced, 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; that is produced by a person who maintains a legal domicile in New Mexico; and that has a budget of no more than two million dollars ($2,000,000)."
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