House File 679 - Introduced
HOUSE FILE
BY KAUFMANN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for the establishment of a digital film
2 equipment conversion program and fund and making an
3 appropriation.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1430YH 83
6 tw/nh/8
PAG LIN
1 1 Section 1. NEW SECTION. 15.394 DIGITAL FILM EQUIPMENT
1 2 CONVERSION PROGRAM AND FUND.
1 3 1. The department shall establish and administer a digital
1 4 film equipment conversion program to provide financial
1 5 assistance to eligible movie theater businesses in the
1 6 conversion from print film projection to digital cinema
1 7 projection. For purposes of this section, "movie theater
1 8 business" means an enterprise operated for profit and under a
1 9 single management for the purpose of displaying motion picture
1 10 films to the general public.
1 11 2. To be eligible for the program, the owner of a movie
1 12 theatre business shall meet all of the following requirements:
1 13 a. The movie theater business projects motion picture
1 14 films using physical film prints and does not have the
1 15 capability to project motion picture films using digital
1 16 cinema projection.
1 17 b. The movie theater business is unable to purchase
1 18 digital cinema projection equipment at a reduced cost from
1 19 certain film production companies or film integrator companies
1 20 through the virtual print fee discount programs offered by
1 21 those companies. A movie theater business may meet this
1 22 requirement by demonstrating a level of ticket sales too low
1 23 to qualify for the discount, or by not typically displaying a
1 24 motion picture film on the nationwide release date of the
1 25 film.
1 26 3. a. A movie theater business meeting the eligibility
1 27 requirements of this section shall qualify for a loan in an
1 28 amount equal to the amount necessary to purchase digital
1 29 cinema projection equipment.
1 30 b. The loan shall be offered at an interest rate of zero
1 31 percent.
1 32 c. The department shall adopt rules governing the terms
1 33 and obligations of the loan, including repayment of the
1 34 principal.
1 35 4. a. A digital film equipment conversion fund is created
2 1 in the state treasury under the control of the department
2 2 consisting of moneys appropriated to the department for
2 3 deposit in the fund and repayments of moneys loaned pursuant
2 4 to this section.
2 5 b. Moneys credited to the fund are not subject to section
2 6 8.33. Notwithstanding section 12C.7, interest or earnings on
2 7 moneys in the fund shall be credited to the fund.
2 8 5. The department shall adopt rules for the administration
2 9 of this section.
2 10 Sec. 2. Section 15G.111, subsection 1, paragraph a,
2 11 subparagraph (2), Code 2009, is amended by adding the
2 12 following new subparagraph division:
2 13 NEW SUBPARAGRAPH DIVISION. (g) The digital film equipment
2 14 conversion program established in section 15.394. Of the
2 15 moneys appropriated to the department pursuant to this
2 16 subparagraph (2), the department shall allocate at least five
2 17 hundred thousand dollars for deposit in the digital film
2 18 equipment conversion fund.
2 19 Sec. 3. Section 15G.112, subsection 2, Code 2009, is
2 20 amended to read as follows:
2 21 2. a. An applicant may apply to the Iowa economic
2 22 development board for a waiver of the wage requirements in
2 23 subsection 1.
2 24 b. The department shall provide a waiver of the wage
2 25 requirements in subsection 1 to applicants for assistance
2 26 under the digital film equipment conversion program
2 27 established in section 15.394.
2 28 Sec. 4. CONDITIONAL REPEAL AND ENACTMENT.
2 29 1. If 2009 Iowa Acts, House File 656, is enacted, the
2 30 sections of this Act amending sections 15G.111 and 15G.112 are
2 31 repealed.
2 32 2. If 2009 Iowa Acts, House File 656, is enacted, section
2 33 15G.111, subsection 4, as enacted by that Act, is amended by
2 34 adding the following new paragraph:
2 35 NEW PARAGRAPH. i. For deposit in the digital film
3 1 equipment conversion fund created in section 15.394, five
3 2 hundred thousand dollars.
3 3 EXPLANATION
3 4 This bill provides for the establishment of a digital film
3 5 equipment conversion program.
3 6 Converting movie theaters from the use of standard physical
3 7 film projection equipment to digital projection equipment
3 8 provides substantial savings to film production companies, but
3 9 causes movie theaters to incur substantial costs. While film
3 10 production companies frequently offer virtual print fee
3 11 discount programs to defray the cost to theaters, not all
3 12 theaters are eligible for these benefits, especially theaters
3 13 in small towns with low ticket sales. The bill directs the
3 14 department of economic development to establish a loan program
3 15 to help theaters purchase the equipment necessary to display
3 16 digital films.
3 17 The loans are offered at zero percent, but to be eligible a
3 18 movie theater must not already have the equipment and must not
3 19 be able to procure the equipment from the film production
3 20 companies or certain film integrator companies through the
3 21 virtual print fee discount programs.
3 22 The bill creates a fund in the state treasury under the
3 23 control of the department and allocates $500,000 of the moneys
3 24 appropriated to the department through the grow Iowa values
3 25 fund for deposit in the new fund. Repayments of loans are
3 26 credited to the fund as is interest on the fund moneys.
3 27 Because moneys received from the grow Iowa values fund
3 28 typically carry the job and wage requirements of Code section
3 29 15G.112, the bill directs the department to waive those
3 30 requirements for applicants to the digital film equipment
3 31 conversion program.
3 32 The bill provides for the conditional repeal and enactment
3 33 of provisions relating to the allocation of grow Iowa values
3 34 fund moneys for purposes of the program. House File 656 makes
3 35 significant changes to the appropriations within the grow Iowa
4 1 values fund. Therefore, if House File 656 is enacted, the
4 2 bill repeals the amendments to Code sections 15G.111 and
4 3 15G.112 and provides for the allocation of the same $500,000
4 4 for the digital film equipment conversion program under the
4 5 new grow Iowa values fund appropriations provisions.
4 6 LSB 1430YH 83
4 7 tw/nh/8.2