AB 5 — Enacts the Nevada Studio Infrastructure Jobs and Workforce Training Act. (BDR S-13)

and (b) Except as otherwise provided in subsections 3 and 4, the percentage calculated by dividing a numerator consisting of the wages and salaries paid to Nevada residents who are below-the-line personnel, excluding background actors, for labor or services provided in this State by a denominator consisting of the total wages - *AB5_R1* – 24 – and salaries paid to all below-the-line personnel, excluding background actors, for labor or services provided in this State, must exceed the applicable requirement set forth in subsection 1.

- *AB5_R2* – 25 – 4.

The Executive Director of the Office shall approve such a waiver if the production - *AB5_R1* – 25 – company provides evidence satisfactory to the Executive Director that:

- *AB5_R2* – 26 – 4.

- *AB5_R1* – 26 – (3) If a production company is found to have knowingly submitted any false statement, representation or certification in any document submitted for the purpose of obtaining film infrastructure transferable tax credits.

Except as otherwise provided in paragraph (b) of subsection 1 and subsection 3, the amount of film infrastructure transferable tax credits authorized for a fiscal year that are not approved for that - *AB5_R2* – 27 – fiscal year may be carried forward and made available for approval only during the next fiscal year, but the amount of film infrastructure transferable tax credits carried forward and made available for approval during the next fiscal year must not exceed $47,500,000.

- *AB5_R1* – 27 – 3.

Except as otherwise provided in this subsection, if an application for a certificate of eligibility is approved pursuant - *AB5_R2* – 28 – to section 11 of this act, principal photography of the qualified production must begin not more than 90 days after the date on which the decision on the application is issued.

A production company that produces a qualified production shall submit the final assessment of the workforce plan and audit required by section 11 of this act and all other required information - *AB5_R1* – 28 – to the Office and the Department of Taxation within the time required by paragraph (d) or (e) of subsection 3 of section 11 of this act, as applicable.

A production company is not required to forfeit or repay any portion of the film infrastructure transferable tax credits to which the production company is otherwise entitled if the production company demonstrates that the production company became ineligible for the film infrastructure transferable tax credits as a result of unforeseen circumstances beyond the control of the - *AB5_R2* – 29 – production company, including, without limitation, an event in the nature of force majeure.

The Clark County Board of County Commissioners shall not create a production studio entertainment district pursuant to this section if the Office and the lead participant in the Summerlin Production Studios Project have not entered into a development agreement pursuant to section 10 of this act within the period - *AB5_R1* – 29 – required by that section or, if a production studio entertainment district has been created, the Clark County Board of County Commissioners shall dissolve the district if the Office and the lead participant in the Project have not entered into a development agreement pursuant to section 10 of this act within the period required by that section.

and - *AB5_R2* – 30 – (e) The basic city-county relief tax, as defined in NRS 377.020, with regard to tangible personal property sold at retail, or stored, used or otherwise consumed, in the production studio entertainment district, after the deduction made as compensation to the State for the cost of collecting the tax.

- *AB5_R1* – 30 – (a) The Public Employees’ Benefits Program of money pledged pursuant to paragraph (a) of subsection 2 and received by Clark County, specifying the dates and procedure for the distribution of money pledged pursuant to paragraph (a) of subsection 2, for credit to a separate account administered by the Board of the Public Employees’ Benefits Program, which must be used to make health reimbursement arrangement contributions for active state employees and to pay the share of the cost of qualified medical expenses for each person who has retired with state service and whose coverage is provided through the Public Employees’ Benefits Program by an individual medical plan offered pursuant to the Health Insurance for the Aged Act, 42 U.S.C.

(a) Deposit all money received pursuant to this section in a separate account established and administered by the Board of Trustees of the Clark County School District and use money in such account solely for the purposes of prekindergarten education programs in the Clark County School District, which, at the discretion of the Clark County School District, may include, without limitation, the development and implementation of early childhood - *AB5_R2* – 31 – education pathways for the Clark County School District in collaboration with the College of Education at the University of Nevada, Las Vegas.

- *AB5_R1* – 31 – 6.

- *AB5_R2* – 32 – (1) The cumulative capital investment, by component, including the studio campus, vocational-training studio and supporting uses;

(5) Any capital investment outside of the site of the Project credited toward meeting the capital investment requirements - *AB5_R1* – 32 – included in the development agreement pursuant to paragraph (a) of subsection 1 of section 10 of this act;

- *AB5_R2* – 33 – (2) The aggregate number of persons in Nevada employed by qualified productions, the aggregate amount of wages paid to those persons and aggregated demographic information concerning those persons;

(4) For each qualified production and cumulatively for all qualified productions, the percentage of below-the-line personnel, by occupation and in aggregate, providing labor or services who were Nevada residents, calculated by dividing the number of - *AB5_R1* – 33 – workdays worked by Nevada residents who are below-the-line personnel, excluding background actors, by the number of workdays worked by all below-the-line personnel, excluding background actors;

- *AB5_R2* – 34 – (9) The period during which each qualified production was in Nevada and employed persons in Nevada;

The Executive Director of the Office shall waive any requirement to report pursuant to subsection 1 that would result in the disclosure of the compensation of an individual, any personally identifiable information or a trade secret, as defined in NRS 600A.030, except that the Executive Director shall require the reporting of such information, as described in subsection 1, in aggregated form to avoid the disclosure of the compensation of an - *AB5_R1* – 34 – individual, any personally identifiable information or a trade secret, as defined in NRS 600A.030.

- *AB5_R2* – 35 – (b) The number of qualified productions for which film infrastructure transferable tax credits were approved;

Recommendations for strengthening the overall operation of the program for the issuance of film infrastructure transferable tax credits, including, without limitation, methods to promote and - *AB5_R1* – 35 – encourage the development and establishment of production companies in Nevada, including, without limitation, production companies that are not affiliated with the Summerlin Production Studios Project;

The compilation of information provided in reports made by recipients of grants from the Account for Nevada Film, Media and Related Technology Education and Vocational Training created - *AB5_R2* – 36 – by section 38 of this act, which is provided to the Office pursuant to section 40 of this act.

The Director of the Office of Finance in the Office of the Governor shall submit a request to the State Board of Examiners to suspend the authority of taxpayers to redeem film infrastructure transferable tax credits issued pursuant to section 11 of this act or noninfrastructure transferable tax credits issued pursuant to NRS 360.759, or both, if, at any time during a fiscal year, the Economic Forum projects that the anticipated revenue of the State for that fiscal year will fall short by 10 percent or more of the total anticipated revenue for the fiscal year, as projected by the Economic Forum for that fiscal year pursuant to paragraph (e) of subsection 1 of NRS 353.228 and as adjusted by any legislation - *AB5_R1* – 36 – enacted by the Legislature that affects state revenue for that fiscal year.

(b) The total amount of film infrastructure transferable tax credits set forth pursuant to section 15 of this act and noninfrastructure transferable tax credits set forth pursuant to - *AB5_R2* – 37 – NRS 360.7594 used by all taxpayers must not exceed 133 percent of the total amount of film infrastructure transferable tax credits pursuant to section 15 of this act and noninfrastructure transferable tax credits pursuant to NRS 360.7594 authorized for a fiscal year beginning on or after July 1, 2029, and before June 30, 2044.

- *AB5_R1* – 37 – Sec.

(e) For a qualified production that submits an application for a certificate of eligibility for noninfrastructure transferable tax credits pursuant to NRS 360.759 on or after July 1, 2030, and - *AB5_R2* – 38 – before July 1, 2031, at least 30 percent of the below-the-line personnel of the qualified production are Nevada residents.

- *AB5_R1* – 38 – (h) For a qualified production that submits an application for a certificate of eligibility for noninfrastructure transferable tax credits pursuant to NRS 360.759 on or after July 1, 2038, and before July 1, 2044, at least 60 percent of the below-the-line personnel of the qualified production are Nevada residents.

- *AB5_R2* – 39 – (a) Director of photography;

- *AB5_R1* – 39 – (m) Special effects supervisor;

- *AB5_R2* – 40 – Sec.

360.7582 “Below-the-line personnel” means a person employed to work on a qualified production after production begins and before production is completed, including, without limitation, [an extra,] a background actor, best boy, boom operator, camera loader, camera operator, assistant camera operator, compositor, dialogue editor, film editor, assistant film editor, focus puller, Foley operator, Foley editor, gaffer, grip, key grip, lighting crew, lighting board operator, lighting technician, music editor, sound editor, - *AB5_R1* – 40 – sound effects editor, sound mixer, steadicam operator, first assistant camera operator, second assistant camera operator, digital imaging technician, camera operator working with a director of photography, electric best boy, grip best boy, dolly grip, rigging grip, assistant key for makeup, assistant key for hair, assistant script supervisor, set construction foreperson, lead set dresser, assistant key for wardrobe, scenic foreperson, assistant propmaster, assistant audio mixer, assistant boom person, assistant key for special effects and other similar personnel.

- *AB5_R2* – 41 – (c) A telethon or any production that solicits money, other than a production which is produced for national distribution.

- *AB5_R1* – 41 – (h) Any other type of production that is excluded by regulations adopted by the Office of Economic Development pursuant to NRS 360.759.

- *AB5_R2* – 42 – 3.

- *AB5_R1* – 42 – (I) At least [60] 50 percent of the [direct production expenditures for:

and - *AB5_R2* – 43 – (2) Not later than 365 days after the completion of principal photography of the qualified production, unless the Office agrees to extend this period by not more than 180 days, a final assessment of the workforce plan that includes documentation on whether the production met or made good faith efforts to achieve the goals set forth in the workforce plan;

- *AB5_R1* – 43 – (1) An itemized report of qualified direct production expenditures which:

or (2) If the qualified production does not have end screen credits, another acknowledgment in the final version of the qualified - *AB5_R2* – 44 – production which indicates that the qualified production was filmed or otherwise produced in Nevada [;] or any alternative marketing promotion acceptable to the Office;

and (h) [Meet any other requirements prescribed by regulation pursuant to this section.] Enter into a written agreement with the Office that requires the production company to transmit to each contractor, vendor, personal service corporation or loan-out company or other business engaged by the production company to provide goods or perform services in an aggregate amount of at least $10,000 or more in this State in connection with a qualified production, not later than 30 calendar days after the production company pays the contractor, vendor, personal service corporation - *AB5_R1* – 44 – or loan-out company or other business, a notification that includes:

and - *AB5_R2* – 45 – (i) [Proof that the production company has secured all licenses and registrations required to do business in each location in this State at which the qualified production will be produced;

and - *AB5_R1* – 45 – (c) The Nevada Gaming Control Board.

and (b) Issue to the production company a certificateof noninfrastructure transferable tax credits in the amount approved - *AB5_R2* – 46 – by the Office for the fees or taxes included in the declaration of the production company [.] , minus the amount of money transferred pursuant to paragraph (a).

- *AB5_R1* – 46 – 8.

- *AB5_R2* – 47 – 10.

or - *AB5_R1* – 47 – (7) Persons who were previously incarcerated in a jail or prison.

(3) Compensation, including wages, salaries, fringe benefits and other payments, paid to a bona fide third-party - *AB5_R2* – 48 – service provider, or to another person receiving the compensation on behalf of the bona fide third-party service provider, for labor or services provided in Nevada.

- *AB5_R1* – 48 – (c) Photography, sound and lighting;

- *AB5_R2* – 49 – (b) For which reimbursement is received, or for which reimbursement is reasonably expected to be received;

or (e)] Which have been previously claimed as a basis for noninfrastructure transferable tax credits [,] issued pursuant to NRS 360.759 or film infrastructure transferable tax credits issued pursuant to section 11 of this act, - *AB5_R1* – 49 –  are not qualified direct production expenditures and are not eligible to serve as a basis for transferable tax credits issued pursuant to NRS 360.759.

(b) “Fringe benefits” means employee expenses paid by an employer for the use of the employee’s services, including, without - *AB5_R2* – 50 – limitation, payments made to a governmental entity, union dues, health insurance premiums, payments to a pension plan and payments for workers’ compensation insurance.

(d) “Qualified individual” means any natural person who performs services during the production period in an activity - *AB5_R1* – 50 – related to the production of a qualified production.

- *AB5_R2* – 51 – (a) An additional 5 percent of the qualified direct production expenditures if more than 50 percent of the below-the-line personnel of the qualified production are Nevada residents;

(a) Except as otherwise provided in paragraph (b) of this subsection, the percentage of the below-the-line personnel who are Nevada residents must be determined by dividing the number of - *AB5_R1* – 51 – workdays worked by Nevada residents by the number of workdays worked by all below-the-line personnel.

or - *AB5_R2* – 52 – (b) Withhold the noninfrastructure transferable tax credits, in whole or in part:

and - *AB5_R1* – 52 – (b) Make the following determinations:

- *AB5_R2* – 53 – (4) For the period beginning January 1, 2017,] must not be included in the calculation.

Except as otherwise provided in this subsection, the Office [of Economic Development] shall not approve any application for a certificate of eligibility for noninfrastructure transferable tax credits submitted pursuant to NRS 360.759 if approval of the application would cause the total amount of - *AB5_R1* – 53 – noninfrastructure transferable tax credits approved pursuant to NRS 360.759 for each [fiscal] :

- *AB5_R2* – 54 – 3.

For an eligible production company that submitted the application for the certificate of eligibility for the noninfrastructure transferable tax credits before July 1, 2029, or on or after July 1, 2044, the noninfrastructure transferable tax - *AB5_R1* – 54 – credits issued to any production company for any qualified production pursuant to NRS 360.759:

[If the Office of Economic Development receives an application for transferable tax credits pursuant to - *AB5_R2* – 55 – NRS 360.759, the Office shall, not later than 10 days before a hearing on the application, provide notice of the hearing to:

4.] Except as otherwise provided in this subsection, if [the] an application for a certificate of eligibility for noninfrastructure - *AB5_R1* – 55 – transferable tax credits is approved [,] pursuant to NRS 360.759, principal photography of the qualified production must begin not more than 90 days after the date on which the decision on the application is issued.

360.7598 The Office of Economic Development shall, on or before [October] December 1 of each even-numbered year, prepare and submit to the Governor and to the Director of the Legislative - *AB5_R2* – 56 – Counsel Bureau for transmittal to the Legislature [an annual] a report which includes, for the immediately preceding fiscal year [:] and cumulatively for the period beginning on the effective date of this act and ending on the last day of the immediately preceding fiscal year:

- *AB5_R1* – 56 – 4.

For each qualified production and cumulatively for all qualified productions, the percentage of below-the-line personnel, by occupation and in aggregate, providing labor or services who were Nevada residents, calculated by dividing the wages and - *AB5_R2* – 57 – salaries paid to Nevada residents who were below-the-line personnel, excluding background actors, for labor or services provided in this State by the total wages and salaries paid to all below-the-line personnel, excluding background actors;

- *AB5_R1* – 57 – 13.

- *AB5_R2* – 58 – 2.

- *AB5_R1* – 58 – 4.

- *AB5_R2* – 59 – (d) One member, who must not be a Legislator, appointed by the Minority Leader of the Senate;

- *AB5_R1* – 59 – (h) One member appointed by the Board of Regents of the University of Nevada;

- *AB5_R2* – 60 – 6.

A member of the Board who is an officer or employee of this State or a political subdivision of this State must be relieved from duties without loss of regular compensation so that the officer or employee may prepare for and attend meetings of the - *AB5_R1* – 60 – Board and perform any work necessary to carry out the duties of the Board in the most timely manner practicable.

- *AB5_R2* – 61 – Sec.

- *AB5_R1* – 61 – Sec.

- *AB5_R2* – 62 – (a) Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks.

(b) For all other purposes, on the date on which the Executive Director of the Office of Economic Development notifies the - *AB5_R1* – 62 – Governor and the Director of the Legislative Counsel Bureau pursuant to section 42 of this act that the Office has entered into a development agreement that satisfies the requirements of section 10 of this act with the lead participant of the Project described in sectionsec3.onSections 921 to 32, inclusive, of this act.act become effective:

3.

Sections 21 to 32, inclusive, of this act become effective:

H - *AB5_R2**AB5_R1*