Wyoming Office of Tourism

Film Industry Financial Incentive Program

Chapter 1: General Provisions

Effective Date: 05/11/2007 to Current

Rule Type: Current Rules & Regulations

Reference Number: 066.0001.1.05112007

State of Wyoming

Film Industry Financial Incentive Program Rules

Chapter 1

GENERAL PROVISIONS

Section 1. Purpose. The purpose of this program is to promote economic development at the city, town and county level in order to create additional economic health and a diversified state economy, to provide promotion and public visibility of Wyoming as a tourist or business destination, to provide new employment opportunities within Wyoming for Wyoming workers, to create the entertainment industry financial incentives program and to authorize incentives for qualified film productions. These rules are adopted in order to implement W.S. 9-12-402 through 9-12-406 for purposes of providing entertainment industry financial incentive program reimbursements authorized under this act. The rules provide for requirements for the contract process, records required for submission for substantiation of reimbursement and determination of and qualification for reimbursement.

Section 2. Authority. Rule-making for this program is the responsibility of the Wyoming Business Council, Travel & Tourism Division (Council) as authorized by W.S. 9-12-406(a).

Section 3. Definitions.

(a) “Filmed entertainment” means any one (1) motion picture, television production, commercial or music video to be sold or displayed in electronic medium or film motion pictures.

“Production costs” means the total cost of producing filmed entertainment

“Program” means the film industry financial incentive program created under this article

(d) “Qualified production” means filmed entertainment totally or partially produced and filmed in this state that would have widespread public appeal and would likely encourage members of the public to visit the state of Wyoming.

(e) “Resident” applies only to natural persons and includes, any person domiciled in the state of Wyoming and any other person who maintains a permanent place of abode within the state even though temporarily absent from the state and who has not established a residence elsewhere.

“Qualified expenditures” mean expenditures for goods purchased or leased or services purchased, leased or employed from a vendor or supplier who is located and

doing business in this state if the expenditure was made in this state and was made for a qualified production. Qualified expenditures for which reimbursement may be made are limited to:

(i) Salaries and employment benefits for services rendered in and to residents of this state;

(ii) Rents for real and personal property located in this state used in the production;

(iii) Payments for preproduction, production, post-production and digital media effects services provided in this state;

(iv) Costs of set construction provided in this state.

Section 4. Eligible Applicants. The Council may contract with any entity engaged in this state in producing filmed entertainment for reimbursement of qualified expenditures.

(a) The Council may contract with the makers of a qualified production to provide a reimbursement of up to fifteen percent (15%) of the production's qualified expenditures if a minimum of five hundred thousand dollars ($500,000.00) in total qualified expenditures are made.

(b) The sum of all contractual obligations under this section shall not exceed the total appropriation available for the program for any fiscal biennium.

(c) A qualified production applying for a payment under this section shall submit documentation for claimed qualified expenditures to the Council.

Section 5. Application Procedures.

(a) Responsibilities of the Production Company (Contractor):

(i) Contractor completes the Film Industry Financial Incentive (FIFI) program application and submits a copy of the script or synopsis along with the distribution plan to the Wyoming Film Office.

(ii) Contractor completes the Production Rebate Agreement and distributes the rebate guidelines to production department heads for tracking of qualified expenditures, payroll records and resident crew hires.

(iii) Contractor keeps accurate records and receipts of “qualified expenditures” and payroll records for Wyoming “resident” hires.

(b) Responsibilities of the Council:

(i) An application shall be reviewed by the sub-committee to determine eligibility and completeness. An application that is determined by the sub-committee to be incomplete shall be provided an explanation of the findings in writing within thirty (30) working days of its receipt where practical.

(ii) An application that is complete shall be forwarded by the sub-committee with a recommendation to the Wyoming Tourism Board for their review.

(iii) Wyoming Tourism Board considers sub-committee recommendation and determines that project is consistent with the statute and rules.

Section 6. Application Evaluation.

(a) The Council shall be provided information required to determine if the production is a qualified production and to determine the qualified expenditures, production costs and other information necessary for the Council to determine both eligibility for and the appropriate level of reimbursement. The Council shall require information including, but not limited to:

(i) Production related employment.

(ii) Proposed total production budgets.

(iii) Planned expenditures in this state which are intended for use exclusively as an integral part of preproduction, production or post-production activities engaged in primarily in this state.

(iv) A signed affidavit by a person authorized to commit the entity that the information provided to the Council has been verified and is correct.

(b) No reimbursement shall be made unless the Council has entered into an agreement which provides for adequate consideration to the state in exchange for the reimbursement provided.

(c) No reimbursement of qualified expenditures shall be made by the Council until the qualified production is complete and substantially all contractual commitments made to the council have been fulfilled.

(d) If a qualified production is not completed according to a reasonable schedule, the contract shall be terminated and funds reallocated to other qualified productions.

Section 7. Approval Process.

(a) In order to determine compliance with Article 16, Section 6 of the Wyoming Constitution, the Council staff will forward the production contract to the Attorney General for approval as to form using the following criteria:

1. (i) A public purpose must exist;
2. (ii) Adequate consideration must be exchanged; and
3. (iii) Statutory authority must exist.

(b) The Council may determine a rebate percentage between twelve percent (12%) and fifteen percent (15%) based on the following measures:

1. (i) Providing a storyline that is set in Wyoming (full 15% rebate);
2. (ii) Providing additional Wyoming behind the scenes footage highlighting Wyoming locations used in the project or a brief trailer produced and supplied by Wyoming Travel & Tourism, no longer than 60 seconds (up to 14% rebate);
3. (iii) Using Wyoming props and product placement (up to 13% rebate);
4. (iv) Providing a clear statement in the credits that the product was filmed in Wyoming, in addition to, the following four-line credit: Special thanks to Governor Dave Freudenthal (or current Governor) & the Wyoming Legislature for Wyoming's Film Industry Financial Incentive www.filmwyoming.com (minimum 12% rebate); and
5. (v) Other promotional opportunities that provide Wyoming tourism value could be negotiated to determine rebate percentage.

Section 8. Reimbursement Requirements.

(a) Responsibilities of the Contractor:

1. (i) Contractor compiles a comprehensive list of Wyoming expenditures and calculates qualified percentage rebate within sixty (60) days of completing principal photography.

2. (ii) In compliance with the Production Rebate Agreement, the Contractor provides proof of the following:

3. (A) Total dollar amount spent in Wyoming (including labor);

4. (B) Total Wyoming payroll figure;
5. (C) Total number of Wyoming crew members hired;
6. (D) Average crew size (per day) for prep and shoot;
7. (E) Prep dates & number of prep days;
8. (F) Shoot dates & number of shoot days; and
9. (G) List of all Wyoming cities/towns used for locations.

(b) Responsibilities of the Council:

(i) Wyoming Film Office confirms compliance with the Production Rebate Agreement and verifies percentage rebate figures.

(ii) Council Comptroller’s Office verifies Film Industry Financial Incentive (FIFI) funds, voucher processing and reimbursement of rebate.

Section 9. Fund Disbursement and Project Monitoring

(a) Fund Disbursement. Funds shall be disbursed to the Contractor only as needed to discharge obligations incurred in accordance with the Board approved eligible project costs. Request for disbursement shall be made on a form supplied by Council staff and supported by adequate proof that such an obligation has been incurred for the project purpose and is due and owing.

(b) Fund reversion.

(i) If the Council staff determines that the project has not started within ninety (90) days from the date the contract is signed, the contract will automatically expire. Based on information supplied by the Contractor, Council staff may grant an extension of time in which to start the project.

(ii) If the Council staff determines that the project has not been completed within a reasonable time, Council staff shall notify the applicant in writing at least thirty (30) days prior to presenting the matter for Board review.

(c) Project Monitoring.

(i) Audits and inspections. The Council staff may, at its expense, conduct an audit of the records of the Contractor and inspect the progress of the project.

(ii) Record retention. Contractor agrees to retain all records related to the project for three (3) years following Council staff’s date of notice to Contractor of closeout of the contract.