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S.B. 231





Chief Sponsor: Mark B. Madsen

House Sponsor: ____________

             7      LONG TITLE
             8      General Description:
             9          This bill provides for the establishment of film enterprise zones.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides for the establishment of film enterprise zones;
             13          .    defines "individual applicant" as who may apply for the establishment of a film
             14      enterprise zone;
             15          .    modifies the powers of the Governor's Office of Economic Development as related
             16      to the establishment of a film enterprise zone;
             17          .    provides criteria for the application process, approval, and eligibility review of a
             18      film enterprise zone; and
             19          .    provides reporting provisions.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          This bill provides an immediate effective date.
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          63M-1-1801, as last amended by Laws of Utah 2009, Chapter 135
             27      ENACTS:

             28          63M-1-2901, Utah Code Annotated 1953
             29          63M-1-2902, Utah Code Annotated 1953
             30          63M-1-2903, Utah Code Annotated 1953
             31          63M-1-2904, Utah Code Annotated 1953
             32          63M-1-2905, Utah Code Annotated 1953
             33          63M-1-2906, Utah Code Annotated 1953
             34          63M-1-2907, Utah Code Annotated 1953
             36      Be it enacted by the Legislature of the state of Utah:
             37          Section 1. Section 63M-1-1801 is amended to read:
             38           63M-1-1801. Purpose.
             39          (1) The Legislature finds that:
             40          (a) the state's natural beauty, scenic wonders, and diverse topography provide a variety
             41      of magnificent settings from which the motion picture industry can choose to film part or all of
             42      major or independent motion pictures, made-for-television movies, and television series;
             43          (b) the state has an abundance of resources, including a skilled and able workforce, the
             44      required infrastructure, and a friendly and hospitable populace that have been instrumental in
             45      the filming of hundreds of successful motion pictures and several television series; and
             46          (c) further development of the motion picture industry in Utah, including motion
             47      picture studios and production facilities and ancillary uses, is a state public purpose that will
             48      significantly impact growth in the state's economy and contribute to the fiscal well being of the
             49      state and its people.
             50          (2) The purpose of this part is to:
             51          (a) encourage the use of Utah as a site for the production of motion pictures, television
             52      series, and made-for-television movies;
             53          (b) provide financial incentives to the film industry so that Utah might compete
             54      successfully with other states and countries for filming locations; and
             55          (c) help develop a strong motion picture industry presence in the state that will
             56      contribute substantially to improving the state's economy.
             57          Section 2. Section 63M-1-2901 is enacted to read:

             59          63M-1-2901. Title.
             60          This part is known as the "Film Enterprise Zone Act."
             61          Section 3. Section 63M-1-2902 is enacted to read:
             62          63M-1-2902. Definitions.
             63          As used in this part, "individual applicant" means an individual or entity that meets the
             64      requirements for designation as a film enterprise zone under Section 63M-1-2904 .
             65          Section 4. Section 63M-1-2903 is enacted to read:
             66          63M-1-2903. Powers of the office.
             67          The office shall:
             68          (1) monitor the implementation and operation of this part and conduct a continuing
             69      evaluation of the progress made in a film enterprise zone;
             70          (2) evaluate an application from an individual for designation as a film enterprise zone
             71      and determine if the applicant qualifies for that designation; and
             72          (3) provide technical assistance to individual applicants in developing applications for
             73      designation as a film enterprise zone.
             74          Section 5. Section 63M-1-2904 is enacted to read:
             75          63M-1-2904. Criteria for designation as a film enterprise zone -- Application.
             76          (1) An individual applicant for designation of a film enterprise zone shall file an
             77      application, including a nonrefundable fee of $30,000, with the office.
             78          (2) The application shall contain:
             79          (a) the proposed location of the film enterprise zone;
             80          (b) evidence that the proposed film enterprise zone will promote and encourage the
             81      expansion and retention of an emerging film industry for the benefit of the state;
             82          (c) a site plan for the film enterprise zone development reflecting the reasonable uses to
             83      be developed within the film enterprise zone, which may include:
             84          (i) pre- and post-production facilities and sound stages;
             85          (ii) iconic water tank or other designation of the zone;
             86          (iii) entertainment facilities;
             87          (iv) administrative offices;
             88          (v) set design areas;
             89          (vi) back lots;

             90          (vii) support retail and food services, including indoor and outdoor festivals; and
             91          (viii) other reasonable uses that are commensurate with the film industry;
             92          (d) a letter of intent from a bonafide motion picture studio that it desires to conduct
             93      business within the film enterprise zone that is the subject of the application;
             94          (e) the applicant's verification that:
             95          (i) no other film enterprise zone has been approved in the same county;
             96          (ii) the property on which the proposed film enterprise zone is to be established is
             97      owned or controlled by the applicant;
             98          (iii) the proposed film enterprise zone includes at least 20 acres and not more than 50
             99      acres; and
             100          (iv) the development proposed for approval by the office within the film enterprise
             101      zone is not more than 17,500 square feet of building density per acre, is not less than 10% open
             102      space, contains not more than five parking spaces per 1,000 feet, unless the applicant can
             103      demonstrate a need for additional spaces, and does not exceed a 60 foot building height,
             104      excluding rooftop equipment and equipment enclosures.
             105          (3) An application filed under Subsection (1) shall be in a form and in accordance with
             106      procedures approved by the office and shall include:
             107          (a) the specific investment and development within the zone that the applicant expects
             108      to take place;
             109          (b) the applicant's proposed means of assessing the effectiveness of the development
             110      plan or other programs to be implemented within the zone once they have been implemented;
             111          (c) any additional information required by the office; and
             112          (d) any additional information the applicant considers relevant to its designation as a
             113      film enterprise zone.
             114          Section 6. Section 63M-1-2905 is enacted to read:
             115          63M-1-2905. Eligibility review.
             116          (1) The office shall:
             117          (a) review and evaluate an application submitted under Section 63M-1-2904 and
             118      determine whether the individual applicant is eligible for designation as a film enterprise zone;
             119      and
             120          (b) approve or deny the application within 30 days of submission of the completed

             121      application.
             122          (2) The office shall consider and evaluate an application using the following criteria:
             123          (a) the interest of the state in fostering an emerging industry;
             124          (b) the need to foster, develop, and nourish the emergence of a new industry, the need
             125      to support educational institutions and objectives in support of new industry, and the need to
             126      foster employment and skill in the entertainment or video gaming industries;
             127          (c) the potential for new investment and economic development that will benefit
             128      communities outside of the proposed film enterprise zone;
             129          (d) the applicant's proposed use of state and federal development funds or programs to
             130      increase the probability of new investment and development occurring;
             131          (e) the extent to which the projected development in the zone will provide employment
             132      to residents of the county and the state in general;
             133          (f) the degree to which the application promotes innovative solutions to economic
             134      development problems and promotes a positive national and international profile for the state;
             135          (g) the applicant's financial stability and profitability; and
             136          (h) other relevant factors that the office specifies in its recommendation.
             137          (3) (a) Within 10 days after approval of an application under Subsection (1)(b), the
             138      office shall submit the completed and vested application to the appropriate municipal or county
             139      authority, which shall constitute an overlay to the municipal or county general plan.
             140          (b) Upon receipt of an application under Subsection (3)(a), the county or municipality
             141      shall:
             142          (i) complete the processing of final development approvals, under the applicable
             143      county or municipal building code, but consistent with the development and densities in the
             144      completed and approved application, within 60 days of approval by the office, as if approval of
             145      the film enterprise zone had been granted by the municipality or county under this part; and
             146          (ii) require the individual applicant to submit construction documents, consistent with
             147      final approval and with the county or municipal building code, to the county or municipality in
             148      which the film enterprise zone is located.
             149          (c) The county or municipality in which the approved film enterprise zone is located
             150      may charge the individual applicant reasonable fees as follows:
             151          (i) the county or municipality may not charge an additional application or filing fee;

             152          (ii) all reasonable and normal fees charged by the county, special service districts, or
             153      the municipality, consistent with a commercial development of a similar size and magnitude
             154      within the jurisdiction, using a fee schedule existing on January 1, 2011, which includes
             155      building permits, grading permits, and inspections fees;
             156          (iii) the county or municipality may not charge bonding requirements for
             157      improvements; and
             158          (iv) impact fees shall be based on a finding by the county or municipality that each
             159      exaction is roughly proportionate, both in nature and extent, to the impact of the proposed
             160      development.
             161          (d) The county or municipality in which the approved film enterprise zone is located
             162      shall apply the provisions of Title 10, Chapter 9a, Municipal Land Use, Development, and
             163      Management, or Title 17, Chapter 27a, County Land Use, Development, and Management Act,
             164      as applicable, and other local ordinances that do not conflict with the provisions of this part.
             165          Section 7. Section 63M-1-2906 is enacted to read:
             166          63M-1-2906. Designation of film enterprise zone -- Duration -- Revocation.
             167          (1) The office shall consider designating film enterprise zones upon application by an
             168      individual applicant.
             169          (2) (a) Approved film enterprise zones continue until:
             170          (i) development as contemplated in the film enterprise zone application is not
             171      commenced within five years of the approval of the application; or
             172          (ii) at any time after the five year period referred to in Subsection (2)(a)(i) upon the
             173      applicant's cessation of operations in the film enterprise zone.
             174          (b) A designation may be revoked under Subsection (2)(a) (ii) upon application by the
             175      individual applicant or the municipality or county in which the film enterprise zone is located.
             176          Section 8. Section 63M-1-2907 is enacted to read:
             177          63M-1-2907. Annual report.
             178          (1) Each individual applicant designated as a film enterprise zone shall annually report
             179      to the office regarding the economic activity that has occurred in the zone following the
             180      approval and designation under this part.
             181          (2) The office shall make an annual report to the Legislature's Workforce Services and
             182      Community and Economic Development Interim Committee regarding the information

             183      received from applicants under Subsection (1).
             184          Section 9. Effective date.
             185          If approved by two-thirds of all the members elected to each house, this bill takes effect
             186      upon approval by the governor, or the day following the constitutional time limit of Utah
             187      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             188      the date of veto override.

Legislative Review Note
    as of 2-25-11 2:15 PM

Office of Legislative Research and General Counsel

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