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Rules Committee backs changes to film rebate program, urges streamlined permitting
Summary
The committee forwarded an ordinance to repeal a cap that limited individual film rebates to the city tax paid and a resolution urging streamlined city permitting; the Office of Economic Analysis projected modest net general-fund impacts but predicted job and spending gains if the rebate encourages more productions.
The Rules Committee voted to send forward two related items intended to boost film production in San Francisco: an ordinance to repeal a provision that limits individual rebates to the amount of tax a production pays to the city (while retaining the $1.8 million program cap), and a resolution urging city departments and public entities to streamline permitting and adopt single-use agreements and insurance for film productions.
Supervisor (sponsoring) described the measures as efforts to preserve and grow local film industry employment and infrastructure after a period of decline. "This legislation would...repeal the provision in the rebate program that limits individual rebates to the amount of tax that the production pay the city," the supervisor said; the $1.8 million program cap would remain in place.
Ted Egan, the chief economist with the Office of Economic Analysis, presented an economic impact assessment. Egan said removing the cap would raise the average rebate from roughly 1.5% of production costs to about 2.8%, and projected approximately 105 film-industry jobs over an 18-month window and 254 total jobs across industries through multiplier effects, generating about $47.7 million in additional spending. Egan also projected the change would leave roughly $1.4 million of the current $1.8 million cap unused by the program’s June 2009 expiration under his uptake assumptions.
Stephanie Coyote, executive director of the Film Commission, and a range of location managers and union representatives testified in support, describing operational barriers—unpredictability of rebate amounts and fragmented permitting—that discourage productions. "Since the film production rebate program was passed...there's been very little activity and only 1 production has fully processed to date," Coyote said, urging the committee to forward both items with recommendation.
Committee members pressed for clarity on fiscal impacts. One supervisor summed the Office of Economic Analysis numbers as showing a small projected gain under the current program and a modest net cost under the proposed change, but many committee members characterized the potential job creation and economic stimulus as a strategic investment. The committee amended timing in the resolution so staff would have until June to develop procedures and report back by June 15, and then moved both items forward with a recommendation to the Board.
Next steps: The ordinance and resolution are forwarded to the full Board for consideration with recommended amendments to timing; the film office and OEA will provide further fiscal and implementation details in follow-up materials.
