SEC. 57.8. FILM REBATE PROGRAM.

(a) Purpose. The purpose of the Film Rebate Program is to increase the number of qualified film productions being made in San Francisco, increase the number of City residents employed in the filmmaking industry, and encourage the resulting economic benefits to increased filmmaking in San Francisco.

(b) Definitions. As used in this Section 57.8, the following terms shall have the following meanings:

"Principal photography" means the time period and phase of film production during which the main photography occurs.

"Qualified film production" means a feature-length film, documentary film, docudrama film, television film, television pilot, "reality" program or each episode of a television series or web series, regardless of the medium used to create or convey it, that is created by a film or production company that expends at least 65 percent of the total principal photography days exclusively in the City. "Qualified film production" shall not include:

(1) a news or current affairs program, interview or talk program, instructional film or program, film or program consisting primarily of stock footage, sporting event or sporting program, game show, award ceremony, film or program intended primarily for industrial, corporate or institutional end-users, fundraising film or program, commercials, or music videos; or

(2) a production for which records are required under Title 18 United States Code Section 2257, to be maintained with respect to any performer in such production.

"Qualified low-budget film production" means a feature-length film, documentary film, docudrama film, television film, television pilot, "reality" program or each episode of a television series or web series, regardless of the medium used to create or convey it, that is created by a film or production company that expends at least 55 percent of the total principal photography days exclusively in the City and has a total budget of no more than $3,000,000. "Qualified low-budget film production" shall not include:

(2) a production for which records are required under Title 18 United States Code Section 2257, to be maintained with respect to any performer in such production.

"Qualified production cost," means the following expenses of a qualified low-budget film production or a qualified film production:

(1) Any taxes, with the exception of hotel or sales taxes, paid to the City, or any of its constituent departments, the proceeds of which are placed in the general fund;

(2) Any moneys paid to the City, or any of its constituent departments, for the use of City property, equipment, or employees other than police services as described in Chapter 10B of this Administrative Code except as authorized in subsection (5) below;

(3) Any moneys paid to the City, or any of its constituent departments, for the use of property leased by the City;

(4) Any daily use fees charged by the Film Commission, pursuant to Section 57.5 of the Administrative Code, to engage in film production in the City; and

(5) Police services as described in Chapter 10B of this Administrative Code, provided that such services do not exceed four police officers per day for a total of 12 hours maximum per day per officer.

(1) Allowance of Rebate. A qualified low-budget film production or qualified film production that pays qualified production costs shall be entitled to a rebate, to be calculated as provided herein, provided that the qualified production has entered into a first source hiring agreement with the City that demonstrates good faith efforts to hire economically disadvantaged individuals referred by the San Francisco Workforce Development System to work for the qualified production. Good faith efforts shall include, at a minimum, consulting with the First Source Hiring Administration ("FSHA") for the purpose of preparing a list of positions for which individuals referred by the City might qualify, providing that list to the FSHA at least two weeks prior to the first day of shooting, and documenting efforts to contact and interview job candidates referred by the City to fill the positions listed.

(2) Amount of Rebate. As of July 1, 2015, the City shall pay one dollar for each dollar the qualified low budget film production or qualified film production paid in qualified production costs not to exceed $13,000,000 by June 30, 2028, provided that such rebate payment shall not exceed $600,000 for each such production. No television series or web series shall qualify for more than $600,000 in rebate payments per season. The rebates shall be paid from the project account that the Controller has set aside for Film Rebate Program funds (the “Film Rebate Project Account”). The rebates shall not be paid from funds dedicated under bond or other legal financing covenants. Rebates paid under this Section 57.8 shall be paid only to those qualified low budget film productions or qualified film productions whose filming commenced on or after May 20, 2006. The reasonable expenses of the Film Commission in connection with administering the Rebate Program and reasonable marketing expenses to promote the Rebate Program may be paid out of the Film Rebate Project Account [1]

(3) Implementation. After holding a public hearing, the Executive Director of the Film Commission, in consultation with the Controller, shall promulgate rules and regulations to establish the procedures for implementation of the Film Rebate Program. Such rules shall include provisions describing the application process, the standards used to evaluate the applications, the documentation that will be required to substantiate the amount of the rebate, the appeal process, and any such other provisions as deemed necessary and appropriate to carry out the Film Rebate Program.

o establish the procedures for implementation of the Film Rebate Program. Such rules shall include provisions describing the application process, the standards used to evaluate the applications, the documentation that will be required to substantiate the amount of the rebate, the appeal process, and any such other provisions as deemed necessary and appropriate to carry out the Film Rebate Program.

(d) Authority to Lease Private Property for Film Company Use. Subject to the Controller's certification of funds in the Film Rebate Project Account or other available funding source ("Controller's Certification"), the Director of Property of the Department of Real Estate, in consultation with the Executive Director of the Film Commission, shall have the authority to lease property and sublease such property to film companies for filmrelated activities including, but not limited to filming, editing, film production office space, and stage space uses ("Film Production Leases") when the Executive Director determines, in consultation with the Director of Property, that no suitable alternative City property is available. Notwithstanding any other provision of the Municipal Code, including Administrative Code Sections 23.26 and 23.31, where a proposed Film Production Lease is for a

year-to-year or shorter tenancy and has received the Controller's Certification under this subsection (d), the Director of Property may enter into such Film Production Lease, including any corresponding sublease with a film company subtenant, regardless of whether the monthly rent exceeds $5,000, without action of the Board of Supervisors unless otherwise required by the City Charter.

(e) Annual Reports. The Executive Director shall report annually to the Board of Supervisors on the implementation of the Film Rebate Program. The report shall include a list of each qualified low budget film production and qualified film production, residency of employees, and the total of qualified production costs submitted and paid to each film production. The Controller shall perform an annual assessment and review of the effect of the Film Rebate Program. Based on such assessment and review, the Controller shall prepare and submit an analysis to the Board of Supervisors. The analysis shall be based on criteria deemed relevant by the Controller, and may include but is not limited to data contained in the annual reports to the Board of Supervisors submitted by the Director of the Film Commission.

(f) Expiration of Section. The Film Rebate Program shall expire on June 30, 2028, unless extended by ordinance. If the Film Rebate Program is not extended, the City Attorney shall cause this Section to be removed from the Administrative Code.

(Added by Ord. 70-06, File No. 060065, App. 4/20/2006; amended by Ord. 64-09, File No. 090024, App. 4/23/2009; Ord. 162-09, File No. 090627, App. 7/15/2009; Ord. 205-11, File No. 110900, App. 10/11/2011, Eff. 11/10/2011; Ord. 101-12, File No. 120406, App. 6/11/2012, Eff. 7/11/2012; Ord. 153-13, File No. 130586, App. 7/17/2013, Eff. 8/16/2013; Ord. 268-13, File No. 130937, App. 11/27/2013, Eff. 12/27/2013; Ord. 110-15, File No. 150463, App. 7/2/2015, Eff. 8/1/2015*; Ord. 244-18, File No. 180518, App. 10/26/2018, Eff. 11/26/2018; Ord. 169-23, File No. 230651, App. 7/28/2023, Eff. 8/28/2023)

(Former Sec. 57.8 redesignated as Sec. 57.4 by Ord. 331-00, File No. 001967, App. 12/28/2000)

CODIFICATION NOTE

1. So in Ord. 169-23.

* Editor's Note:

The amendments made by Ord. 110-15 were retroactive to 6/30/2015; see Sec. 4 of the ordinance.