WEBVTT 00:32:18.303 --> 00:32:20.071 THIS. GOOD MORNING. I WANT TO 00:32:20.138 --> 00:32:21.172 WELCOME EVERYONE TO THE 00:32:21.239 --> 00:32:22.206 INAUGURAL HEARING OF THIS 00:32:22.273 --> 00:32:23.675 SELECT COMMITTEE, WHICH SPEAKER 00:32:23.741 --> 00:32:24.876 ROBERT RIVAS RECENTLY CREATED 00:32:24.942 --> 00:32:26.878 TO EXPLORE OPPORTUNITIES TO 00:32:26.944 --> 00:32:28.680 PROTECT CALIFORNIA'S STATUS AS 00:32:28.746 --> 00:32:31.249 AN ICONIC HUB FOR GLOBAL TALENT 00:32:31.316 --> 00:32:32.650 AND TO IDENTIFY POLICY 00:32:32.717 --> 00:32:34.085 SOLUTIONS TO ENSURE THAT 00:32:34.152 --> 00:32:36.354 CALIFORNIA IS NOT ONLY A PLACE 00:32:36.421 --> 00:32:38.289 TO START A BUSINESS OR A CAREER 00:32:38.356 --> 00:32:39.524 IN THE CREATIVE ECONOMY, BUT 00:32:39.590 --> 00:32:40.958 THE BEST PLACE TO GROW ONE. 00:32:41.025 --> 00:32:42.660 WITH MY DISTRICT BRINGING HOME 00:32:42.727 --> 00:32:44.495 TO THOUSANDS OF HIGHLY SKILLED 00:32:44.562 --> 00:32:45.997 PROFESSIONALS IN THE CREATIVE 00:32:46.064 --> 00:32:47.098 INDUSTRIES, INCLUDING IN 00:32:47.165 --> 00:32:48.499 HOLLYWOOD, WEST HOLLYWOOD AND 00:32:48.566 --> 00:32:49.967 SANTA MONICA. I'M GRATEFUL TO 00:32:50.034 --> 00:32:51.369 SPEAKER RIVAS FOR APPOINTING ME 00:32:51.436 --> 00:32:52.870 CHAIR AND GRATEFUL FOR MY 00:32:52.937 --> 00:32:54.038 COLLEAGUES FOR JOINING US TODAY 00:32:54.105 --> 00:32:55.707 ON THIS COMMITTEE. BEFORE I 00:32:55.773 --> 00:32:57.141 SHARE SOME, SHARE SOME OPENING 00:32:57.208 --> 00:32:58.543 COMMENTS, I'D LIKE TO INTRODUCE 00:32:58.609 --> 00:33:00.345 MAURIE MCINTYRE, PRESIDENT AND 00:33:00.411 --> 00:33:01.979 CEO OF THE TELEVISION ACADEMY, 00:33:02.046 --> 00:33:03.281 TO WELCOME YOU ALL TO THE 00:33:03.348 --> 00:33:05.083 HISTORIC WOLFF THEATER IN THE 00:33:05.149 --> 00:33:06.951 TELEVISION ACADEMY SABAN MEDIA 00:33:07.018 --> 00:33:07.952 CENTER. THANK YOU FOR 00:33:08.019 --> 00:33:08.986 GRACIOUSLY HOSTING US TODAY, 00:33:09.053 --> 00:33:13.358 MAURIE. THANK YOU SO MUCH. GOOD 00:33:13.424 --> 00:33:16.627 MORNING, EVERYONE. TO JASPER, 00:33:16.694 --> 00:33:17.695 MEMBERS OF THE COMMITTEE, ALL 00:33:17.762 --> 00:33:19.597 OF OUR GUESTS HERE. IT IS MY 00:33:19.664 --> 00:33:20.732 PLEASURE TO WELCOME YOU TO THE 00:33:20.798 --> 00:33:22.633 WOLFF THEATER HERE AT THE SABAN 00:33:22.700 --> 00:33:23.768 MEDIA CENTER FOR THE INAUGURAL 00:33:23.835 --> 00:33:24.902 HEARING OF THE SELECT COMMITTEE 00:33:24.969 --> 00:33:26.237 ON GROWING AND RETAINING THE 00:33:26.304 --> 00:33:28.072 CREATIVE ECONOMY. THE 00:33:28.139 --> 00:33:30.575 TELEVISION ACADEMY REPRESENTS 00:33:30.641 --> 00:33:32.076 PROFESSIONALS ACROSS 31 00:33:32.143 --> 00:33:33.845 PEER GROUPS SPANNING EVERY 00:33:33.911 --> 00:33:36.314 CRAFT IN OUR INDUSTRY. ROUGHLY 00:33:36.381 --> 00:33:37.448 TWO THIRDS OF OUR MEMBERS 00:33:37.515 --> 00:33:39.684 THAT'S ABOUT 20,000 PEOPLE LIVE 00:33:39.751 --> 00:33:42.053 AND WORK RIGHT HERE IN 00:33:42.120 --> 00:33:43.554 CALIFORNIA. THEY ARE THE 00:33:43.621 --> 00:33:44.956 WRITERS AND PRODUCERS, 00:33:45.022 --> 00:33:46.758 COSTUMERS AND CAMERA OPERATORS, 00:33:46.824 --> 00:33:48.593 EDITORS AND MAKE UP ARTISTS AND 00:33:48.659 --> 00:33:50.328 COUNTLESS OTHER PROFESSIONALS 00:33:50.395 --> 00:33:51.963 WHOSE TALENT AND INGENUITY 00:33:52.029 --> 00:33:53.598 BRING THE STORIES WE LOVE TO 00:33:53.664 --> 00:33:56.100 LIFE. THEY ARE WHAT MAKES 00:33:56.167 --> 00:33:57.368 CALIFORNIA THE GLOBAL CAPITAL 00:33:57.435 --> 00:33:59.737 OF THE TELEVISION INDUSTRY. 00:33:59.804 --> 00:34:01.906 KEEPING THAT INDUSTRY STRONG, 00:34:01.973 --> 00:34:03.708 KEEPING THAT INDUSTRY A VIBRANT 00:34:03.775 --> 00:34:05.843 PART OF CALIFORNIA AND ITS 00:34:05.910 --> 00:34:07.245 ECONOMY DEPENDS UPON THE 00:34:07.311 --> 00:34:09.447 LIVELIHOODS THEY BUILD AND THE 00:34:09.514 --> 00:34:10.515 COMMUNITIES THAT GROW AROUND 00:34:10.581 --> 00:34:12.850 THEIR WORK. FROM THE THOUSANDS 00:34:12.917 --> 00:34:15.553 OF CREW MEMBERS ON SET TO THE 00:34:15.620 --> 00:34:16.621 HUNDREDS OF SMALL BUSINESSES 00:34:16.687 --> 00:34:18.790 THAT SUPPORT A LOCAL PRODUCTION, 00:34:18.856 --> 00:34:20.658 CALIFORNIA'S CREATIVE ECONOMY 00:34:20.725 --> 00:34:22.393 REACHES FAR BEYOND THE SCREEN. 00:34:22.460 --> 00:34:24.896 AND THAT'S WHAT MAKES TODAY SO 00:34:24.962 --> 00:34:26.030 CONSEQUENTIAL. BY CONVENING 00:34:26.097 --> 00:34:28.199 THIS COMMITTEE, THE ASSEMBLY IS 00:34:28.266 --> 00:34:29.133 RECOGNIZING THE IMPORTANCE OF 00:34:29.200 --> 00:34:30.735 THE CREATIVE WORKFORCE AND THE 00:34:30.802 --> 00:34:33.538 SHARED RESPONSIBILITY TO ENSURE 00:34:33.604 --> 00:34:34.572 CALIFORNIA REMAINS A PLACE 00:34:34.639 --> 00:34:36.441 WHERE CREATIVE TALENT CAN 00:34:36.507 --> 00:34:38.943 THRIVE, BUILD CAREERS, AND 00:34:39.010 --> 00:34:40.411 SHAPE THE FUTURE OF OUR 00:34:40.478 --> 00:34:42.313 INDUSTRY. CHAIR ZUBIATE, THANK 00:34:42.380 --> 00:34:43.748 YOU FOR YOUR LEADERSHIP AND 00:34:43.815 --> 00:34:44.916 THANK YOU TO EVERY MEMBER OF 00:34:44.982 --> 00:34:45.983 THE COMMITTEE FOR YOUR 00:34:46.050 --> 00:34:46.918 COMMITMENT TO CALIFORNIA'S 00:34:46.984 --> 00:34:48.286 CREATIVE FUTURE IN A RAPIDLY 00:34:48.352 --> 00:34:50.488 CHANGING LANDSCAPE. AND ON 00:34:50.555 --> 00:34:51.556 BEHALF OF THE TELEVISION 00:34:51.622 --> 00:34:52.623 ACADEMY AND OUR MEMBERS, 00:34:52.690 --> 00:34:54.158 WELCOME TO ALL OF YOU. WE'RE 00:34:54.225 --> 00:34:56.093 PROUD TO HOST THIS CONVERSATION, 00:34:56.160 --> 00:34:57.995 AND WE LOOK FORWARD TO KEEPING 00:34:58.062 --> 00:34:59.464 CALIFORNIA A PLACE WHERE THE 00:34:59.530 --> 00:35:01.666 WORLD'S MOST COMPELLING STORIES 00:35:01.732 --> 00:35:03.801 ARE CREATED AND SHARED. THANK 00:35:03.868 --> 00:35:10.408 YOU SO MUCH. THANK YOU. THANK 00:35:10.475 --> 00:35:12.410 YOU. AND THANK YOU AGAIN TO THE 00:35:12.477 --> 00:35:13.377 TELEVISION ACADEMY FOR HOSTING 00:35:13.444 --> 00:35:15.680 THIS IMPORTANT CONVERSATION. 00:35:15.746 --> 00:35:17.515 AND NOW, NOW WE'RE BRINGING THE 00:35:17.582 --> 00:35:19.217 SELECT COMMITTEE ON GROWING THE 00:35:19.283 --> 00:35:20.184 AND RETAINING THE CREATIVE 00:35:20.251 --> 00:35:24.322 ECONOMY IN CALIFORNIA TO ORDER. 00:35:24.388 --> 00:35:25.089 CALIFORNIA'S CREATIVE 00:35:25.156 --> 00:35:26.123 INDUSTRIES ARE AMONG OUR 00:35:26.190 --> 00:35:27.558 STATE'S GREATEST ECONOMIC 00:35:27.625 --> 00:35:28.793 STRENGTHS, SUPPORTING HUNDREDS 00:35:28.860 --> 00:35:30.795 OF THOUSANDS OF JOBS AND 00:35:30.862 --> 00:35:31.863 GENERATING BILLIONS OF DOLLARS 00:35:31.929 --> 00:35:34.065 IN ECONOMIC ACTIVITY. THE 00:35:34.131 --> 00:35:35.032 CHARTER OF THIS SELECT 00:35:35.099 --> 00:35:36.467 COMMITTEE IS BROAD TO INCLUDE 00:35:36.534 --> 00:35:37.368 THE CREATIVE ECONOMY EXTENDING 00:35:37.435 --> 00:35:38.936 WELL BEYOND THE FILM AND 00:35:39.003 --> 00:35:40.571 TELEVISION, FILM AND TELEVISION 00:35:40.638 --> 00:35:42.907 TO INCLUDE VISUAL EFFECTS, 00:35:42.974 --> 00:35:44.709 POST-PRODUCTION, LIVE THEATER, 00:35:44.775 --> 00:35:45.776 ADVERTISING AND EMERGING 00:35:45.843 --> 00:35:46.878 ENTERTAINMENT AND 00:35:46.944 --> 00:35:48.412 COMMUNICATIONS PLATFORMS. OUR 00:35:48.479 --> 00:35:49.747 GOAL IS TO EXAMINE THE 00:35:49.814 --> 00:35:51.215 CHALLENGES AND OPPORTUNITIES 00:35:51.282 --> 00:35:52.884 FACING ALL OF THESE INDUSTRIES, 00:35:52.950 --> 00:35:54.252 AND IDENTIFY WAYS TO ENSURE 00:35:54.318 --> 00:35:56.621 THEY CONTINUE TO THRIVE HERE IN 00:35:56.687 --> 00:35:58.022 CALIFORNIA. THESE INDUSTRIES 00:35:58.089 --> 00:35:59.457 SUPPORT AN EXTRAORDINARY 00:35:59.524 --> 00:36:01.259 NETWORK OF ARTISTS, PERFORMERS, 00:36:01.325 --> 00:36:03.494 WRITERS, TECHNICIANS, 00:36:03.561 --> 00:36:04.161 CRAFTSPEOPLE, AND SMALL 00:36:04.228 --> 00:36:05.263 BUSINESSES THAT HAVE HELPED 00:36:05.329 --> 00:36:06.731 MAKE CALIFORNIA A GLOBAL LEADER 00:36:06.797 --> 00:36:08.833 IN CREATIVITY AND INNOVATION. 00:36:08.900 --> 00:36:12.003 BUT THAT THAT LEADERSHIP IS NOT 00:36:12.069 --> 00:36:13.170 GUARANTEED. OTHER STATES AND 00:36:13.237 --> 00:36:14.305 COUNTRIES ARE INVESTING 00:36:14.372 --> 00:36:15.339 AGGRESSIVELY TO ATTRACT 00:36:15.406 --> 00:36:16.774 CALIFORNIA PRODUCTIONS, 00:36:16.841 --> 00:36:18.543 CALIFORNIA BUSINESSES AND 00:36:18.609 --> 00:36:20.044 CALIFORNIA'S HIGHLY SKILLED 00:36:20.111 --> 00:36:21.812 WORKERS. IN FUTURE HEARINGS, 00:36:21.879 --> 00:36:23.281 WE'LL FOCUS ON OTHER PARTS OF 00:36:23.347 --> 00:36:25.416 THE CREATIVE ECONOMY. BUT TODAY 00:36:25.483 --> 00:36:26.851 WE'RE BEGINNING WITH ONE OF ITS 00:36:26.918 --> 00:36:29.020 MOST IMPORTANT FOUNDATIONS, 00:36:29.086 --> 00:36:29.754 CALIFORNIA'S FILM AND 00:36:29.820 --> 00:36:31.622 TELEVISION INDUSTRY. AND WE 00:36:31.689 --> 00:36:33.324 HAVE AN IMPORTANT FOUNDATION TO 00:36:33.391 --> 00:36:35.493 BUILD ON. OVER THE PAST TWO 00:36:35.560 --> 00:36:36.894 YEARS, THE LEGISLATURE AND 00:36:36.961 --> 00:36:37.995 GOVERNOR NEWSOM HAVE TAKEN 00:36:38.062 --> 00:36:39.864 SIGNIFICANT STEPS TO STRENGTHEN 00:36:39.931 --> 00:36:40.932 CALIFORNIA'S COMPETITIVENESS IN 00:36:40.998 --> 00:36:42.733 THE FILM AND TELEVISION 00:36:42.800 --> 00:36:43.901 INDUSTRY. LAST YEAR, I WORKED 00:36:43.968 --> 00:36:45.603 CLOSELY WITH GOVERNOR, WITH THE 00:36:45.670 --> 00:36:46.604 GOVERNOR, MY LEGISLATIVE 00:36:46.671 --> 00:36:48.072 COLLEAGUES HERE, INDUSTRY 00:36:48.139 --> 00:36:49.473 LEADERS, LABOR PARTNERS TO 00:36:49.540 --> 00:36:50.942 EXPAND AND MODERNIZE 00:36:51.008 --> 00:36:51.676 CALIFORNIA'S FILM AND 00:36:51.742 --> 00:36:53.878 TELEVISION TAX CREDIT PROGRAM. 00:36:53.945 --> 00:36:55.012 TOGETHER, WE MORE THAN DOUBLED 00:36:55.079 --> 00:36:57.848 THE PROGRAM'S ANNUAL FUNDING TO 00:36:57.915 --> 00:36:59.617 750 MILLION. EXPANDED 00:36:59.684 --> 00:37:00.718 ELIGIBILITY, STRENGTHENED 00:37:00.785 --> 00:37:01.719 INCENTIVES TO BRING PRODUCTIONS 00:37:01.786 --> 00:37:03.554 AND GOOD PAYING JOBS BACK TO 00:37:03.621 --> 00:37:04.655 CALIFORNIA, AND ENHANCED 00:37:04.722 --> 00:37:06.123 DIVERSITY PROVISIONS IN BOTH 00:37:06.190 --> 00:37:08.593 THE 3.0 AND 4.0 PROGRAMS. TO 00:37:08.659 --> 00:37:09.560 ADVANCE OUR ONGOING COMMITMENT 00:37:09.627 --> 00:37:11.429 TO BUILDING A MORE DIVERSE AND 00:37:11.495 --> 00:37:12.964 INCLUSIVE ENTERTAINMENT 00:37:13.030 --> 00:37:14.432 WORKFORCE. AND WE'RE WE'RE 00:37:14.498 --> 00:37:16.133 WE'RE ALREADY BEGINNING TO SEE 00:37:16.200 --> 00:37:18.235 THAT IMPACT. IN THE FIRST YEAR 00:37:18.302 --> 00:37:19.403 OF THE EXPANDED PROGRAM, 00:37:19.470 --> 00:37:21.005 CALIFORNIA AWARDED TAX CREDITS 00:37:21.072 --> 00:37:23.374 TO 170 FILM AND TELEVISION 00:37:23.441 --> 00:37:25.610 PROJECTS, REPRESENTING $6.6 00:37:25.676 --> 00:37:27.378 BILLION IN PROJECTED ECONOMIC 00:37:27.445 --> 00:37:29.413 ACTIVITY AND NEARLY 35,000 00:37:29.480 --> 00:37:30.915 PROJECTED CAST AND CREW JOBS 00:37:30.982 --> 00:37:32.717 ACROSS THE STATE. BUT THIS YEAR, 00:37:32.783 --> 00:37:34.518 WE FACED ANOTHER CHALLENGE WHEN 00:37:34.585 --> 00:37:36.320 UNINTENDED CONSEQUENCES OF THE 00:37:36.387 --> 00:37:38.856 STATE'S CORPORATE TAX CREDIT 00:37:38.923 --> 00:37:39.624 LIMITATIONS THREATENED TO 00:37:39.690 --> 00:37:40.992 UNDERMINE THE PROGRAM'S 00:37:41.058 --> 00:37:42.293 EFFECTIVENESS. I BELIEVED IT 00:37:42.360 --> 00:37:43.527 WAS CRITICAL THAT WE PROTECT 00:37:43.594 --> 00:37:45.363 THE INTEGRITY OF A PROGRAM THAT 00:37:45.429 --> 00:37:46.764 WAS ALREADY CAPPED AND FULLY 00:37:46.831 --> 00:37:48.532 ALLOCATED IN THE STATE BUDGET. 00:37:48.599 --> 00:37:50.401 WE ALL TOGETHER ON THE STAGE, 00:37:50.468 --> 00:37:52.503 FOUGHT ALONGSIDE OTHERS IN THE 00:37:52.570 --> 00:37:54.705 STATE SENATE AND MANY OTHER 00:37:54.772 --> 00:37:55.740 STAKEHOLDERS HERE TODAY TO 00:37:55.806 --> 00:37:57.541 ADVANCE SB 186, WHICH GOVERNOR 00:37:57.608 --> 00:37:59.377 NEWSOM SIGNED LAST MONTH TO 00:37:59.443 --> 00:38:00.344 STRENGTHEN THE PROGRAM AND 00:38:00.411 --> 00:38:01.545 PROVIDE GREATER CERTAINTY FOR 00:38:01.612 --> 00:38:03.047 PRODUCTIONS AND WORKERS. I WANT 00:38:03.114 --> 00:38:04.415 TO REITERATE MY THANKS TO 00:38:04.482 --> 00:38:05.883 GOVERNOR NEWSOM, SENATE 00:38:05.950 --> 00:38:07.418 PRESIDENT PRO TEM MONIQUE LIMON 00:38:07.485 --> 00:38:09.120 AND SPEAKER RIVAS FOR THEIR 00:38:09.186 --> 00:38:10.521 LEADERSHIP IN PROTECTING THIS 00:38:10.588 --> 00:38:12.289 IMPORTANT INVESTMENT. I ALSO 00:38:12.356 --> 00:38:13.758 WANT TO THANK THE MOTION 00:38:13.824 --> 00:38:14.825 PICTURE ASSOCIATION, THE 00:38:14.892 --> 00:38:17.061 DIRECTORS GUILD OF AMERICA AND, 00:38:17.128 --> 00:38:18.095 IMPORTANTLY, THE ENTERTAINMENT 00:38:18.162 --> 00:38:19.430 UNION COALITION, REPRESENTING 00:38:19.497 --> 00:38:21.699 MORE THAN 167,000 ENTERTAINMENT 00:38:21.766 --> 00:38:23.100 INDUSTRY WORKERS FOR THEIR 00:38:23.167 --> 00:38:24.535 TIRELESS ADVOCACY AND 00:38:24.602 --> 00:38:25.302 COMMITMENT TO KEEPING GOOD 00:38:25.369 --> 00:38:27.104 PAYING ENTERTAINMENT JOBS HERE 00:38:27.171 --> 00:38:29.206 IN CALIFORNIA. AND I WANT TO 00:38:29.273 --> 00:38:30.307 RECOGNIZE COLLEEN BELL AND THE 00:38:30.374 --> 00:38:31.509 CALIFORNIA FILM COMMISSION FOR 00:38:31.575 --> 00:38:32.510 THEIR LEADERSHIP IN 00:38:32.576 --> 00:38:33.678 ADMINISTERING THE PROGRAM AND 00:38:33.744 --> 00:38:35.012 THEIR CONTINUED WORK TO SUPPORT 00:38:35.079 --> 00:38:36.247 FILM AND TELEVISION PRODUCTION 00:38:36.313 --> 00:38:38.249 THROUGHOUT OUR STATE. BUT WHILE 00:38:38.315 --> 00:38:39.850 WE'VE MADE IMPORTANT PROGRESS, 00:38:39.917 --> 00:38:41.886 WE KNOW THAT THERE'S MUCH, MUCH 00:38:41.952 --> 00:38:44.355 MORE WORK THAT NEEDS TO BE DONE. 00:38:44.422 --> 00:38:45.456 SPECIFICALLY, WE KNOW 00:38:45.523 --> 00:38:46.557 CALIFORNIA'S FILM TAX CREDIT IS 00:38:46.624 --> 00:38:47.958 NOT YET COMPETITIVE WITH OTHER 00:38:48.025 --> 00:38:49.760 STATES AND COUNTRIES THAT ARE 00:38:49.827 --> 00:38:51.228 LURING OUR JOBS AWAY, AND 00:38:51.295 --> 00:38:52.663 THAT'S WHAT TODAY'S HEARING IS 00:38:52.730 --> 00:38:53.831 ABOUT. TODAY'S HEARING WILL 00:38:53.898 --> 00:38:55.332 HELP US EXAMINE THAT WORK 00:38:55.399 --> 00:38:56.967 THROUGH THREE IMPORTANT 00:38:57.034 --> 00:38:58.769 DISCUSSIONS. FIRST, OUR FIRST 00:38:58.836 --> 00:39:00.104 PANEL WILL FOCUS ON MAINTAINING 00:39:00.171 --> 00:39:02.006 AND GROWING CALIFORNIA'S ICONIC 00:39:02.073 --> 00:39:03.841 FILM AND TELEVISION INDUSTRY. 00:39:03.908 --> 00:39:04.875 WE'LL HEAR FROM INDUSTRY AND 00:39:04.942 --> 00:39:06.010 LABOR LEADERS ABOUT THE 00:39:06.077 --> 00:39:07.044 IMPORTANCE OF FILM AND 00:39:07.111 --> 00:39:08.879 TELEVISION JOBS, THE CHALLENGES 00:39:08.946 --> 00:39:10.648 FACING WORKERS AND PRODUCTIONS, 00:39:10.715 --> 00:39:12.817 AND WHAT CALIFORNIA MUST DO TO 00:39:12.883 --> 00:39:14.985 TO RETAIN THE EXTRAORDINARY 00:39:15.052 --> 00:39:16.787 TALENT THAT MAKES THIS INDUSTRY 00:39:16.854 --> 00:39:18.956 POSSIBLE. OUR SECOND PANEL WILL 00:39:19.023 --> 00:39:20.424 EXAMINE CALIFORNIA'S FILM AND 00:39:20.491 --> 00:39:22.526 TELEVISION TAX CREDIT PROGRAM. 00:39:22.593 --> 00:39:23.627 SPECIFICALLY, WE'LL DISCUSS HOW 00:39:23.694 --> 00:39:25.429 THE EXPANDED PROGRAM IS WORKING, 00:39:25.496 --> 00:39:26.497 WHAT ADDITIONAL STEPS ARE 00:39:26.564 --> 00:39:28.265 NEEDED TO STRENGTHEN ITS 00:39:28.332 --> 00:39:29.433 EFFECTIVENESS AND OPPORTUNITIES 00:39:29.500 --> 00:39:30.801 TO SUPPORT MORE OF THE INDUSTRY, 00:39:30.868 --> 00:39:32.570 INCLUDING POST-PRODUCTION AND 00:39:32.636 --> 00:39:34.038 THE BUSINESSES AND WORKERS WHO 00:39:34.105 --> 00:39:36.207 DEPEND ON IT. AND OUR THIRD 00:39:36.273 --> 00:39:37.641 PANEL WILL EXAMINE HOW 00:39:37.708 --> 00:39:39.076 CALIFORNIA EVALUATES ECONOMIC 00:39:39.143 --> 00:39:40.845 AND BUDGETARY IMPACTS OF THE 00:39:40.911 --> 00:39:42.646 FILM AND TELEVISION TAX CREDIT 00:39:42.713 --> 00:39:44.081 PROGRAM. THIS IS AN ESPECIALLY 00:39:44.148 --> 00:39:45.950 IMPORTANT DISCUSSION. WE NEED 00:39:46.016 --> 00:39:47.418 TO ENSURE THAT OUR BUDGET 00:39:47.485 --> 00:39:48.819 PROCESS FAIRLY AND ACCURATELY 00:39:48.886 --> 00:39:50.221 ASSESSES BOTH THE COSTS OF THE 00:39:50.287 --> 00:39:52.056 PROGRAM, AS WELL AS THE TAX 00:39:52.123 --> 00:39:53.457 REVENUES THAT ARE THE DIRECT 00:39:53.524 --> 00:39:55.059 RESULT OF THE ECONOMIC BENEFITS 00:39:55.126 --> 00:39:57.128 OF THE PROGRAM. THAT INCLUDES 00:39:57.194 --> 00:39:58.162 UNDERSTANDING THE JOB, 00:39:58.229 --> 00:39:59.930 SUPPORTED THE ECONOMIC ACTIVITY, 00:39:59.997 --> 00:40:01.398 GENERATED THE TAX REVENUE 00:40:01.465 --> 00:40:02.533 RETURNED TO THE STATE, AND THE 00:40:02.600 --> 00:40:04.268 BROADER IMPACT ON OUR 00:40:04.335 --> 00:40:05.102 COMMUNITIES. BECAUSE WHEN WE 00:40:05.169 --> 00:40:06.804 LOSE PRODUCTIONS, WE DON'T JUST 00:40:06.871 --> 00:40:08.939 LOSE FILM AND TELEVISION JOBS. 00:40:09.006 --> 00:40:10.808 WE LOSE BUSINESS FOR LOCAL 00:40:10.875 --> 00:40:12.176 RESTAURANTS, SUPPLIERS, 00:40:12.243 --> 00:40:13.577 COUNTLESS SMALL BUSINESSES, AND 00:40:13.644 --> 00:40:15.112 WE LOSE ECONOMIC ACTIVITY AND 00:40:15.179 --> 00:40:16.781 TAX REVENUE THAT HELP SUPPORT 00:40:16.847 --> 00:40:19.049 OUR SCHOOLS, OUR HEALTH CARE 00:40:19.116 --> 00:40:20.818 INFRASTRUCTURE AND OTHER 00:40:20.885 --> 00:40:22.286 ESSENTIAL SERVICES. 00:40:22.353 --> 00:40:23.487 CALIFORNIA'S LEADERSHIP IN FILM 00:40:23.554 --> 00:40:24.855 AND TELEVISION IS NOT 00:40:24.922 --> 00:40:26.223 GUARANTEED. WE HAVE TO MAKE 00:40:26.290 --> 00:40:27.291 INVESTMENTS AND POLICY 00:40:27.358 --> 00:40:28.793 DECISIONS NECESSARY TO MAINTAIN 00:40:28.859 --> 00:40:30.961 IT. WHAT WE HAVE IMPORTANT 00:40:31.028 --> 00:40:32.763 QUESTIONS TO ANSWER TODAY. ONE 00:40:32.830 --> 00:40:34.165 HOW DO WE ENSURE CALIFORNIA 00:40:34.231 --> 00:40:35.332 REMAINS COMPETITIVE AS OTHER 00:40:35.399 --> 00:40:36.734 STATES AND COUNTRIES EXPAND 00:40:36.801 --> 00:40:38.135 THEIR INCENTIVES AND 00:40:38.202 --> 00:40:39.236 INVESTMENTS TO ATTRACT FILM AND 00:40:39.303 --> 00:40:41.205 TELEVISION PRODUCTIONS? SECOND, 00:40:41.272 --> 00:40:43.541 HOW DO WE PROTECT AND GROW GOOD 00:40:43.607 --> 00:40:44.975 PAYING JOBS FOR THE WORKERS AND 00:40:45.042 --> 00:40:46.377 SMALL BUSINESSES THAT FORM THE 00:40:46.443 --> 00:40:47.478 BACKBONE OF CALIFORNIA'S 00:40:47.545 --> 00:40:49.346 ENTERTAINMENT INDUSTRY? AND 00:40:49.413 --> 00:40:50.447 THIRD, WHAT CHANGES DO WE NEED 00:40:50.514 --> 00:40:52.116 TO MAKE TO CALIFORNIA'S BUDGET 00:40:52.183 --> 00:40:53.317 PROCESS TO ENSURE WE'RE FAIRLY 00:40:53.384 --> 00:40:54.718 AND ACCURATELY ASSESSING BOTH 00:40:54.785 --> 00:40:56.520 THE COST AND THE ECONOMIC 00:40:56.587 --> 00:40:57.822 BENEFITS OF THE FILM AND 00:40:57.888 --> 00:40:59.356 TELEVISION TAX CREDIT PROGRAM? 00:40:59.423 --> 00:41:00.791 THESE ARE THE QUESTIONS I HOPE 00:41:00.858 --> 00:41:02.660 THAT WILL GUIDE OUR DISCUSSION 00:41:02.726 --> 00:41:03.761 TODAY AND THE COMMITTEE'S WORK 00:41:03.828 --> 00:41:05.496 AS WE MOVE FORWARD. WE INTEND 00:41:05.563 --> 00:41:06.964 TO INTRODUCE LEGISLATION NEXT 00:41:07.031 --> 00:41:08.699 YEAR TO ADDRESS THE REMAINING 00:41:08.766 --> 00:41:09.500 IMPACTS OF THE STATE'S 00:41:09.567 --> 00:41:10.701 CORPORATE TAX CREDIT PROGRAM, 00:41:10.768 --> 00:41:12.136 WHICH THREATENED TO UNDERMINE 00:41:12.203 --> 00:41:14.605 THIS PROGRAM. BEFORE WE BEFORE 00:41:14.672 --> 00:41:17.007 WE INTERVENED WITH SB 186 AND 00:41:17.074 --> 00:41:18.776 BUILD ON THAT WORK FOR TO 00:41:18.843 --> 00:41:20.277 FURTHER STRENGTHEN THE PROGRAM. 00:41:20.344 --> 00:41:21.345 WE'RE ALSO LOOKING AT 00:41:21.412 --> 00:41:22.413 ADDITIONAL OPPORTUNITIES TO 00:41:22.479 --> 00:41:23.147 IMPROVE THE PROGRAM, 00:41:23.214 --> 00:41:24.248 PARTICULARLY WHEN IT COMES TO 00:41:24.315 --> 00:41:25.182 SUPPORTING POST-PRODUCTION, 00:41:25.249 --> 00:41:26.784 WITH WHICH ASSEMBLYMEMBER 00:41:26.851 --> 00:41:28.252 SCHULTZ HAS BEEN THE LEADER IN 00:41:28.319 --> 00:41:30.387 THE ASSEMBLY, AND WILL CONTINUE 00:41:30.454 --> 00:41:31.555 FOCUSING ON HOW WE INTEGRATE 00:41:31.622 --> 00:41:33.557 THAT INTO THE PROGRAM. ASSEMBLY 00:41:33.624 --> 00:41:34.391 MEMBER SCHULTZ WILL BE TAKING 00:41:34.458 --> 00:41:36.227 THE LEAD ON THAT EFFORT, AND I 00:41:36.293 --> 00:41:37.494 LOOK FORWARD TO WORKING WITH 00:41:37.561 --> 00:41:39.196 HIM TO KEEP THESE JOBS AND 00:41:39.263 --> 00:41:40.397 BUSINESSES IN OUR STATE. 00:41:40.464 --> 00:41:41.832 ASSEMBLY MEMBERS JESSICA 00:41:41.899 --> 00:41:43.334 SALAZAR AND JOHN PARAMEDIAN 00:41:43.400 --> 00:41:44.468 WILL BOTH ARE BOTH HERE. JOHN 00:41:44.535 --> 00:41:46.537 IS HERE ALREADY TODAY. 00:41:46.604 --> 00:41:47.972 REPRESENT INCREDIBLY IMPORTANT 00:41:48.038 --> 00:41:49.406 DISTRICTS THAT ARE THE HOME TO 00:41:49.473 --> 00:41:50.841 SIGNIFICANT FILM AND TELEVISION 00:41:50.908 --> 00:41:51.942 EMPLOYMENT, INCLUDING 00:41:52.009 --> 00:41:53.377 PRODUCTION FACILITIES, 00:41:53.444 --> 00:41:54.411 SOUNDSTAGES, AND THE MANY 00:41:54.478 --> 00:41:55.412 WORKERS AND BUSINESSES THAT 00:41:55.479 --> 00:41:56.513 SUPPORT THE INDUSTRY. SO I WANT 00:41:56.580 --> 00:41:58.415 TO THANK YOU FOR BEING HERE 00:41:58.482 --> 00:41:59.149 TODAY, ASSEMBLYMEMBER 00:41:59.216 --> 00:42:01.318 GARABEDIAN. WE'RE ALSO ALSO 00:42:01.385 --> 00:42:02.753 TODAY, WE HAVE ASSEMBLY MEMBER 00:42:02.820 --> 00:42:04.188 MIKE GIBSON, WHO'S CHAIR OF THE 00:42:04.255 --> 00:42:06.357 ASSEMBLY REVENUE AND TAXATION 00:42:06.423 --> 00:42:07.424 COMMITTEE, WHOSE EXPERTISE WILL 00:42:07.491 --> 00:42:09.193 BE PARTICULARLY VALUABLE AS WE 00:42:09.260 --> 00:42:10.527 EXAMINE THE TAX CREDIT PROGRAM. 00:42:10.594 --> 00:42:11.762 AND HE HAS BEEN SUCH A LEADER 00:42:11.829 --> 00:42:13.497 IN PROTECTING THIS INDUSTRY IN 00:42:13.564 --> 00:42:14.732 THE STATE. SO THANK YOU SO MUCH 00:42:14.798 --> 00:42:16.634 FOR BEING HERE. AND OF COURSE, 00:42:16.700 --> 00:42:17.668 I JUST INTRODUCED ASSEMBLY 00:42:17.735 --> 00:42:20.437 MEMBER NICK SCHULTZ, WHO HAS 00:42:20.504 --> 00:42:22.206 BEEN SUCH A LEADER ON THE 00:42:22.273 --> 00:42:23.274 POST-PRODUCTION EFFORT AND WILL 00:42:23.340 --> 00:42:25.109 BE WORKING CLOSELY ON TRYING TO 00:42:25.175 --> 00:42:27.344 HOW WE INTEGRATE. WE ALSO HOPE 00:42:27.411 --> 00:42:29.013 TO BE JOINED LATER BY ASSEMBLY 00:42:29.079 --> 00:42:30.414 MEMBER TINA MCKENNA, WHO HAS 00:42:30.481 --> 00:42:31.916 WORKED TO ADVANCE DIVERSITY AND 00:42:31.982 --> 00:42:33.384 EXPAND OPPORTUNITIES WITHIN THE 00:42:33.450 --> 00:42:34.752 ENTERTAINMENT INDUSTRY, AND 00:42:34.818 --> 00:42:36.220 ASSEMBLY MEMBER PILAR SCHIAVO. 00:42:36.287 --> 00:42:37.655 I SEE WE'VE BEEN JOINED BY 00:42:37.721 --> 00:42:39.890 ASSEMBLY MEMBER CARDOZA AND 00:42:39.957 --> 00:42:41.425 ASSEMBLY MEMBER, WHO REPRESENTS 00:42:41.492 --> 00:42:42.693 A DISTRICT WHERE THE NEW 00:42:42.760 --> 00:42:43.761 SOUNDSTAGES AND PRODUCTION 00:42:43.827 --> 00:42:44.895 FACILITIES ARE CREATING 00:42:44.962 --> 00:42:46.263 OPPORTUNITIES FOR GROWTH AND 00:42:46.330 --> 00:42:47.431 EMPLOYMENT. I'M GRATEFUL TO ALL 00:42:47.498 --> 00:42:49.199 OF MY COLLEAGUES FOR BEING HERE 00:42:49.266 --> 00:42:50.601 TODAY, AND FOR BRINGING YOUR 00:42:50.668 --> 00:42:51.802 PERSPECTIVES AND EXPERTISE TO 00:42:51.869 --> 00:42:52.870 THIS COMMITTEE, AND I LOOK 00:42:52.937 --> 00:42:54.204 FORWARD TO WORKING TOGETHER AS 00:42:54.271 --> 00:42:55.839 WE MOVE FORWARD IN THE NEXT 00:42:55.906 --> 00:42:57.441 LEGISLATIVE CYCLE. OUR GOAL IS 00:42:57.508 --> 00:42:58.842 NOT SIMPLY TO PRESERVE THE 00:42:58.909 --> 00:42:59.977 INDUSTRY THAT CALIFORNIA BUILT. 00:43:00.044 --> 00:43:01.412 IT'S TO MAKE SURE THAT 00:43:01.478 --> 00:43:02.546 CALIFORNIA CONTINUES TO LEAD 00:43:02.613 --> 00:43:04.315 THE INDUSTRY INTO THE FUTURE. 00:43:04.381 --> 00:43:05.716 WHILE EVERY MEMBER OF THIS 00:43:05.783 --> 00:43:07.217 COMMITTEE WILL HAVE THEIR OWN 00:43:07.284 --> 00:43:08.285 QUESTIONS, I KNOW THAT EACH OF 00:43:08.352 --> 00:43:09.954 MY COLLEAGUES SHARES MY DESIRE 00:43:10.020 --> 00:43:11.488 TO SEE THE FILM AND TAX CREDIT 00:43:11.555 --> 00:43:13.290 PROGRAM GROW AND STRENGTHEN FOR 00:43:13.357 --> 00:43:14.425 THOSE WHO WISH TO PROVIDE 00:43:14.491 --> 00:43:16.293 COMMENT LATER ON. AT THE END OF 00:43:16.360 --> 00:43:17.361 TODAY'S HEARING, WE WILL OPEN 00:43:17.428 --> 00:43:18.696 THE MICROPHONE FOR IN-PERSON 00:43:18.762 --> 00:43:20.431 PUBLIC COMMENT, AND YOU'LL BE 00:43:20.497 --> 00:43:22.066 ALLOWED TO SPEAK FOR A NUMBER 00:43:22.132 --> 00:43:23.200 OF MINUTES, AND WE'LL DETERMINE 00:43:23.267 --> 00:43:24.568 THAT DEPENDING ON HOW MANY 00:43:24.635 --> 00:43:25.936 PEOPLE ARE WANT TO SPEAK. I 00:43:26.003 --> 00:43:27.338 WANT TO THANK EVERYONE WHO'S 00:43:27.404 --> 00:43:28.906 ENGAGED WITH US SO FAR AND SAY 00:43:28.973 --> 00:43:30.240 THAT WE LOOK FORWARD TO 00:43:30.307 --> 00:43:32.743 CONTINUE TO LEARN FROM AND WITH 00:43:32.810 --> 00:43:34.178 YOU AS THIS SELECT COMMITTEE 00:43:34.244 --> 00:43:37.781 MOVES FORWARD INTO 2027. WITH 00:43:37.848 --> 00:43:39.650 THAT, I'D LIKE TO WELCOME OUR 00:43:39.717 --> 00:43:41.385 PANELISTS AND AUDIENCE TO THE 00:43:41.452 --> 00:43:42.753 FORUM AND GIVE MEMBERS OF OUR 00:43:42.820 --> 00:43:43.721 COMMITTEE AN OPPORTUNITY TO 00:43:43.787 --> 00:43:45.389 PROVIDE THEIR OWN OPENING 00:43:45.456 --> 00:43:47.524 REMARKS. I'D LIKE TO GO AHEAD 00:43:47.591 --> 00:43:48.659 AND LET'S START ON THIS WITH 00:43:48.726 --> 00:43:50.794 WITH THE CHAIR OF OUR TAX AND 00:43:50.861 --> 00:43:53.263 REVENUE COMMITTEE, MR. GIBSON. 00:43:53.330 --> 00:43:54.531 I WANT TO SAY THANK YOU VERY 00:43:54.598 --> 00:43:56.300 MUCH, MR. CHAIRMAN, AND THANK 00:43:56.367 --> 00:43:57.468 YOU VERY MUCH FOR ALLOWING, 00:43:57.534 --> 00:43:58.535 FIRST OF ALL, SPEAKER RIVAS, 00:43:58.602 --> 00:44:00.070 FOR ALLOWING THIS COMMITTEE TO 00:44:00.137 --> 00:44:01.271 EXIST AND THANK THE AUDIENCE 00:44:01.338 --> 00:44:02.706 FOR BEING HERE AGAIN. MY NAME 00:44:02.773 --> 00:44:04.341 IS MIKE GIBSON. I CHAIR THE 00:44:04.408 --> 00:44:07.277 REVENUE TAXATION COMMITTEE. AND 00:44:07.344 --> 00:44:09.813 SO ONE AGAIN, MY PURPOSE FOR 00:44:09.880 --> 00:44:11.582 BEING HERE IS ONE, BECAUSE I 00:44:11.648 --> 00:44:13.851 BELIEVE IN THIS INDUSTRY, WE'VE 00:44:13.917 --> 00:44:15.386 DONE A LOT OF HEAVY LIFTING AS 00:44:15.452 --> 00:44:18.856 A LEGISLATURE. AND ALSO WITH MY 00:44:18.922 --> 00:44:20.290 COMMITTEE, THE REVENUE TAXATION 00:44:20.357 --> 00:44:22.426 COMMITTEE, WE ARE COMMITTED TO 00:44:22.493 --> 00:44:23.861 MAKING SURE THIS INDUSTRY 00:44:23.927 --> 00:44:25.996 THRIVE AND GROW. IT IS 00:44:26.063 --> 00:44:28.565 IMPORTANT FOR US TO MAKE SURE 00:44:28.632 --> 00:44:29.967 THAT CALIFORNIA CONTINUE TO 00:44:30.034 --> 00:44:32.036 LEAD IN THIS SPACE. THIS 00:44:32.102 --> 00:44:33.937 INDUSTRY PROVIDES NOT ONLY THE 00:44:34.004 --> 00:44:38.976 JOBS BUT ALSO CALIFORNIA IS 00:44:39.043 --> 00:44:41.111 STRENGTHENED BY THIS INDUSTRY, 00:44:41.178 --> 00:44:43.647 THE HOMES AND THE TOURS THAT WE 00:44:43.714 --> 00:44:45.482 HAVE TAKEN INDIVIDUALLY AS WELL 00:44:45.549 --> 00:44:47.251 AS COLLECTIVELY. THE STORIES WE 00:44:47.317 --> 00:44:49.486 HAVE HEARD ARE SO IMPORTANT AND 00:44:49.553 --> 00:44:52.356 SO INCREDIBLE BECAUSE WITH EACH 00:44:52.423 --> 00:44:54.191 STORY THERE ARE LIVES AND THERE 00:44:54.258 --> 00:44:55.526 ARE FAMILIES THERE ARE 00:44:55.592 --> 00:44:56.994 CONNECTED TO THOSE STORIES, AND 00:44:57.061 --> 00:45:00.230 IT IS NOT LOST ON ME TAKING THE 00:45:00.297 --> 00:45:02.399 TOURS. AND THOSE ARE VERY 00:45:02.466 --> 00:45:04.902 IMPORTANT STORIES THAT I'VE 00:45:04.968 --> 00:45:07.037 HEARD. WE DON'T WANT YOUR 00:45:07.104 --> 00:45:08.205 FAMILIES TO GO TO DIFFERENT 00:45:08.272 --> 00:45:09.940 STATES OR DIFFERENT, DIFFERENT 00:45:10.007 --> 00:45:11.708 OTHER COUNTRIES. WE WANT ALL 00:45:11.775 --> 00:45:12.976 THOSE STORIES AND THOSE LIVES 00:45:13.043 --> 00:45:14.645 TO THRIVE AND GROW RIGHT HERE 00:45:14.711 --> 00:45:16.780 IN CALIFORNIA. AND SO THE WORK 00:45:16.847 --> 00:45:18.882 THAT WE'VE DONE IN THE 00:45:18.949 --> 00:45:19.716 LEGISLATURE IS IMPORTANT. 00:45:19.783 --> 00:45:20.951 THERE'S SO MUCH WORK THAT WE 00:45:21.018 --> 00:45:23.987 NEED TO DO AND CONTINUE TO DO 00:45:24.054 --> 00:45:27.591 HERE IN THE LEGISLATURE. THE $2 00:45:27.658 --> 00:45:30.027 BILLION HERE IN THE STATE OF 00:45:30.094 --> 00:45:31.228 CALIFORNIA. WE WANT TO MAKE 00:45:31.295 --> 00:45:32.596 SURE THAT THAT CONTINUED TO 00:45:32.663 --> 00:45:34.731 STAY HERE, THAT THE TAX, THE 00:45:34.798 --> 00:45:36.900 FILM TAX CREDIT THAT WE WERE 00:45:36.967 --> 00:45:38.302 PASSED HERE IN THE STATE 00:45:38.368 --> 00:45:39.803 LEGISLATURE, WE WANT TO MAKE 00:45:39.870 --> 00:45:41.972 SURE THAT WE CONTINUE TO MAKE 00:45:42.039 --> 00:45:45.909 SURE THAT WHATEVER ONE THAT WE 00:45:45.976 --> 00:45:47.344 THE WORK THAT WE DO, AND THE 00:45:47.411 --> 00:45:49.513 GOVERNOR DID A YEOMAN'S JOB. 00:45:49.580 --> 00:45:51.014 AND I WANT TO COMMEND OUR 00:45:51.081 --> 00:45:52.382 GOVERNOR FOR ONE, HAVING THE 00:45:52.449 --> 00:45:54.251 VISION OF. FOURTH, THE FOURTH 00:45:54.318 --> 00:45:55.419 SITE, BECAUSE I BELIEVE WITHOUT 00:45:55.486 --> 00:45:56.487 A VISION, THE PEOPLE PERISH. 00:45:56.553 --> 00:45:58.522 AND THIS GOVERNOR DID THE HEAVY 00:45:58.589 --> 00:46:00.023 LIFTING. HE BROUGHT US ALL IN. 00:46:00.090 --> 00:46:02.826 AND I WANT TO COMMEND HIS WORK 00:46:02.893 --> 00:46:03.994 BECAUSE IT WAS IMPORTANT. BUT I 00:46:04.061 --> 00:46:05.896 THINK THERE'S A LOT OF WORK TO 00:46:05.963 --> 00:46:07.231 DO. AND I BELIEVE THAT WITH 00:46:07.297 --> 00:46:08.932 THIS HEARING TODAY THAT YOU'RE 00:46:08.999 --> 00:46:11.902 GOING TO SHARE WITH US THE REAL 00:46:11.969 --> 00:46:14.004 WORK THAT NEEDS TO BE DONE IN 00:46:14.071 --> 00:46:15.806 2027 AND BEYOND. AND I WANT TO 00:46:15.873 --> 00:46:17.708 HEAR WHAT YOU HAVE TO SAY, AND 00:46:17.774 --> 00:46:19.810 I'M HERE TO BE ABLE TO LISTEN 00:46:19.877 --> 00:46:22.246 AND TAKE THAT WORK IN MY NEW 00:46:22.312 --> 00:46:24.414 ROLE MOVING FORWARD. AND I'M 00:46:24.481 --> 00:46:25.916 LOOKING FORWARD TO SEEING AND 00:46:25.983 --> 00:46:26.683 HEARING WHAT NEEDS TO BE DONE. 00:46:26.750 --> 00:46:29.219 SO THANK YOU VERY MUCH. THANK 00:46:29.286 --> 00:46:33.056 YOU. ASSEMBLY MEMBER GIBSON. 00:46:33.123 --> 00:46:34.691 I'D LIKE TO RECOGNIZE ASSEMBLY 00:46:34.758 --> 00:46:38.162 MEMBER SCHULTZ. THANK YOU VERY 00:46:38.228 --> 00:46:40.597 MUCH, MR. CHAIR. JUST WANTED 00:46:40.664 --> 00:46:41.932 I'LL KEEP IT BRIEF, BUT I 00:46:41.999 --> 00:46:43.033 WANTED TO THANK YOU, MISTER 00:46:43.100 --> 00:46:44.168 CHAIR, FOR YOUR LEADERSHIP AND 00:46:44.234 --> 00:46:45.202 BRINGING US TOGETHER ON THIS 00:46:45.269 --> 00:46:47.004 ISSUE. AND TO EVERYONE AT THIS 00:46:47.070 --> 00:46:48.906 TABLE WHO I THINK HAS DONE A 00:46:48.972 --> 00:46:50.107 LOT OF WORK ALREADY AND PLANS 00:46:50.174 --> 00:46:51.909 TO DO MORE TO KEEP THIS 00:46:51.975 --> 00:46:52.910 INDUSTRY HERE. OF COURSE. 00:46:52.976 --> 00:46:53.977 THANKS AND RECOGNITION TO OUR 00:46:54.044 --> 00:46:55.045 SPEAKER, OUR FEARLESS LEADER, 00:46:55.112 --> 00:46:56.180 AND TO THE GOVERNOR AND OUR 00:46:56.246 --> 00:46:58.315 SENATE COUNTERPARTS. I JUST 00:46:58.382 --> 00:47:00.017 WANTED TO EXPRESS THAT WHAT I 00:47:00.083 --> 00:47:01.518 HOPE WE TAKE AWAY FROM TODAY IS 00:47:01.585 --> 00:47:03.687 A SENSE OF URGENCY. I THINK 00:47:03.754 --> 00:47:05.255 THAT THIS COMMITTEE'S FOCUS ON 00:47:05.322 --> 00:47:06.256 THE ENTERTAINMENT INDUSTRY IS 00:47:06.323 --> 00:47:08.692 NOT IDEOLOGICAL. IT'S PRAGMATIC. 00:47:08.759 --> 00:47:10.160 PEOPLE AREN'T WORKING IN OUR 00:47:10.227 --> 00:47:11.595 COMMUNITIES. WHEN WHEN I 00:47:11.662 --> 00:47:13.430 BROUGHT FORWARD AB 2319 AND 00:47:13.497 --> 00:47:15.065 MISTER CHAIR, YOU AND I HAVE 00:47:15.132 --> 00:47:16.300 TALKED A LOT ABOUT IT AND CAN'T 00:47:16.366 --> 00:47:18.101 THANK YOU ENOUGH FOR YOUR 00:47:18.168 --> 00:47:19.203 PARTNERSHIP ON IT. THERE WAS NO 00:47:19.269 --> 00:47:21.071 TIME TO WAIT TO PUT SOME 00:47:21.138 --> 00:47:22.272 CONTEXT INTO IT. WE LOST MORE 00:47:22.339 --> 00:47:23.440 THAN 1800 POST-PRODUCTION JOBS 00:47:23.507 --> 00:47:25.242 JUST BETWEEN 2012 AND 2025. 00:47:25.309 --> 00:47:27.778 THAT'S A 13.2% 13.2% DECLINE 00:47:27.844 --> 00:47:29.046 ACROSS THE STATE OF CALIFORNIA. 00:47:29.112 --> 00:47:30.514 THAT'S A CRISIS. AND CALIFORNIA 00:47:30.581 --> 00:47:33.183 DID NOTHING, NOTHING FOR A VERY 00:47:33.250 --> 00:47:34.284 LONG TIME TO KEEP PEOPLE 00:47:34.351 --> 00:47:35.752 WORKING AND TO KEEP THOSE JOBS 00:47:35.819 --> 00:47:37.588 HERE. WHEN I TALK ABOUT THE THE 00:47:37.654 --> 00:47:39.156 URGENCY THAT WE SHOULD ACT WITH, 00:47:39.223 --> 00:47:40.324 I DON'T, AGAIN, TALK ABOUT IT 00:47:40.390 --> 00:47:41.525 FROM AN IDEOLOGICAL POINT. I 00:47:41.592 --> 00:47:42.559 TALK ABOUT THE CONVERSATIONS 00:47:42.626 --> 00:47:44.361 I'VE HAD WITH MPEG LOCAL 700 00:47:44.428 --> 00:47:45.395 MEMBERS THAT ARE LOOKING FOR 00:47:45.462 --> 00:47:47.631 WORK AND CAN'T FIND IT. AND YET 00:47:47.698 --> 00:47:48.832 CALIFORNIA, UNTIL VERY RECENTLY, 00:47:48.899 --> 00:47:50.500 BOTH IN THE EXPANSION LAST YEAR 00:47:50.567 --> 00:47:52.202 AND LEGISLATION THIS YEAR, HAS 00:47:52.269 --> 00:47:53.370 DONE NOTHING TO INCENTIVIZE 00:47:53.437 --> 00:47:55.272 THOSE JOBS. STAYING HERE. WHAT 00:47:55.339 --> 00:47:56.673 THAT MEANS IN TERMS OF A LOSS 00:47:56.740 --> 00:47:58.508 TO THE STATE OF CALIFORNIA IS 00:47:58.575 --> 00:48:00.944 AN ESTIMATED $1.63 BILLION IN 00:48:01.011 --> 00:48:02.412 ANNUAL ECONOMIC ACTIVITY, 00:48:02.479 --> 00:48:03.880 ANNUAL ECONOMIC ACTIVITY AND 00:48:03.947 --> 00:48:05.983 MORE THAN $507 MILLION IN 00:48:06.049 --> 00:48:07.884 ANNUAL WAGE LOSS. THE POINT 00:48:07.951 --> 00:48:09.486 THAT I'M TRYING TO MAKE IS NONE 00:48:09.553 --> 00:48:10.687 OF THIS IS POSSIBLE WITHOUT 00:48:10.754 --> 00:48:11.722 YOUR LEADERSHIP. OF COURSE, MR. 00:48:11.788 --> 00:48:13.490 CHAIR, ALL OF OUR PANELISTS WHO 00:48:13.557 --> 00:48:14.591 ARE HERE, EVERYONE THAT WE'RE 00:48:14.658 --> 00:48:16.493 GOING TO HEAR FROM. BUT I HOPE 00:48:16.560 --> 00:48:18.395 THAT WE ALL WALK AWAY FIRED UP 00:48:18.462 --> 00:48:19.663 WITH A SENSE OF URGENCY AND AN 00:48:19.730 --> 00:48:21.431 UNDERSTANDING THAT WE NEED TO 00:48:21.498 --> 00:48:23.233 ACCOMPLISH MUCH, MUCH MORE IN 00:48:23.300 --> 00:48:25.802 2027. NØ CANNOT BE AN ANSWER 00:48:25.869 --> 00:48:27.271 THAT WE TOLERATE, AND WE HAVE 00:48:27.337 --> 00:48:29.339 GOT TO STRIVE AND DREAM BIGGER 00:48:29.406 --> 00:48:31.008 AND DO MORE AT THE STATE LEVEL. 00:48:31.074 --> 00:48:32.075 AND I'LL SIMPLY CLOSE WITH 00:48:32.142 --> 00:48:33.677 NOTING THAT OUR INCENTIVE 00:48:33.744 --> 00:48:35.746 STRUCTURE ALONE MAY NOT SOLVE 00:48:35.812 --> 00:48:37.614 THE ISSUE, BUT IT'S A CRITICAL 00:48:37.681 --> 00:48:39.116 COMPONENT OF OUR SOLUTION TO 00:48:39.182 --> 00:48:40.550 KEEPING THESE JOBS IN OUR 00:48:40.617 --> 00:48:41.718 COMMUNITY. AND OF COURSE, WE'LL 00:48:41.785 --> 00:48:43.720 NEED TO CONTINUE TO FIND 00:48:43.787 --> 00:48:44.855 OPPORTUNITIES FOR FEDERAL 00:48:44.921 --> 00:48:46.323 PARTNERSHIP IN FORMS OF 00:48:46.390 --> 00:48:47.491 EXPANDED INCENTIVES. AND WE 00:48:47.557 --> 00:48:49.393 NEED OUR LOCAL PARTNERS TO DO 00:48:49.459 --> 00:48:50.627 MORE TO CUT RED TAPE AND KEEP 00:48:50.694 --> 00:48:51.728 PRODUCTION ROLLING IN LOS 00:48:51.795 --> 00:48:53.397 ANGELES. THANK YOU VERY MUCH, 00:48:53.463 --> 00:48:54.931 MR. CHAIR. THANK YOU VERY MUCH. 00:48:54.998 --> 00:48:57.067 AND I'D LIKE TO RECOGNIZE 00:48:57.134 --> 00:48:58.568 ASSEMBLYMEMBER GARABEDIAN. WELL, 00:48:58.635 --> 00:49:00.070 THANK YOU, MR. CHAIR, AND THANK 00:49:00.137 --> 00:49:01.238 YOU TO MR. SCHULTZ. CAN YOU 00:49:01.305 --> 00:49:03.006 TELL WHO USED TO BE A 00:49:03.073 --> 00:49:04.074 PROSECUTOR? YOU HAD NEVER 00:49:04.141 --> 00:49:05.208 GUESSED THAT. I'M FIRED UP. I'M 00:49:05.275 --> 00:49:07.077 FIRED UP BY THAT. THANK YOU TO 00:49:07.144 --> 00:49:08.945 THE TELEVISION ACADEMY FOR 00:49:09.012 --> 00:49:11.148 HOSTING US THIS GORGEOUS VENUE. 00:49:11.214 --> 00:49:12.949 BUT JUST BRIEFLY, MR. CHAIR, 00:49:13.016 --> 00:49:14.051 THANK YOU FOR EVERYTHING THAT 00:49:14.117 --> 00:49:15.218 YOU'VE DONE. NO ONE HAS WORKED 00:49:15.285 --> 00:49:17.220 HARDER ON THESE ISSUES THAN YOU. 00:49:17.287 --> 00:49:19.022 AND BEHIND THE SCENES, 00:49:19.089 --> 00:49:20.490 ESPECIALLY JUST HOW HARD YOU'VE 00:49:20.557 --> 00:49:22.292 PUSHED TO MAKE SOME OF THESE 00:49:22.359 --> 00:49:23.760 THINGS A REALITY AND TO IMPROVE 00:49:23.827 --> 00:49:25.228 THEM. AND US BEING HERE IS 00:49:25.295 --> 00:49:26.396 REALLY BECAUSE OF YOU AND MR. 00:49:26.463 --> 00:49:28.198 SCHULTZ. THANK YOU FOR HAVING 00:49:28.265 --> 00:49:29.299 US IN YOUR DISTRICT. I COULD 00:49:29.366 --> 00:49:31.168 SAY THE SAME THING ABOUT YOU 00:49:31.234 --> 00:49:32.369 AND JUST ALL YOUR ADVOCACY AND 00:49:32.436 --> 00:49:34.237 ALL YOUR WORK, BUT THIS IS SUCH 00:49:34.304 --> 00:49:36.340 AN IMPORTANT ISSUE FOR NOT ONLY 00:49:36.406 --> 00:49:38.108 OUR DISTRICTS, BUT THE WHOLE 00:49:38.175 --> 00:49:39.943 STATE. AND IT'S PERSONAL FOR A 00:49:40.010 --> 00:49:41.411 LOT OF US WHENEVER WE'RE BACK 00:49:41.478 --> 00:49:42.846 IN THE DISTRICT, ESPECIALLY 00:49:42.913 --> 00:49:44.214 THOSE OF US WHO REPRESENT SO 00:49:44.281 --> 00:49:46.049 MANY FOLKS IN THIS INDUSTRY, 00:49:46.116 --> 00:49:47.217 THE MESSAGE IS CLEAR. WE WANT 00:49:47.284 --> 00:49:49.419 TO WORK HERE. WE WANT TO WORK 00:49:49.486 --> 00:49:50.721 AND SEE OUR KIDS AND OUR 00:49:50.787 --> 00:49:52.422 SPOUSES AND OUR PARTNERS AT THE 00:49:52.489 --> 00:49:54.324 SAME TIME. WE DON'T WANT TO BE 00:49:54.391 --> 00:49:55.525 IN GEORGIA. WE DON'T WANT TO BE 00:49:55.592 --> 00:49:57.427 IN CANADA. WE DON'T WANT TO BE 00:49:57.494 --> 00:49:59.363 OVERSEAS. AND THE MORE THAT YOU 00:49:59.429 --> 00:50:00.430 CAN HELP FACILITATE THAT, THE 00:50:00.497 --> 00:50:01.565 BETTER. WE HAVE THE NATURAL 00:50:01.631 --> 00:50:02.532 ADVANTAGES HERE. WE HAVE THE 00:50:02.599 --> 00:50:04.401 TALENT, WE HAVE THE STUDIOS, WE 00:50:04.468 --> 00:50:05.502 HAVE THE SCENERY, BUT THAT 00:50:05.569 --> 00:50:06.570 ISN'T ENOUGH ANYMORE. AND WE 00:50:06.636 --> 00:50:08.672 NEED TO ACTUALLY PUT THE 00:50:08.739 --> 00:50:10.507 DOLLARS AND THE INVESTMENT 00:50:10.574 --> 00:50:11.575 BEHIND IT. AND THAT'S WHERE WE 00:50:11.641 --> 00:50:13.443 COME IN. AND I THINK THAT WE 00:50:13.510 --> 00:50:15.379 HAVE A COLLECTIVE BUY IN TO DO 00:50:15.445 --> 00:50:16.580 THAT. AND I THINK TODAY IS 00:50:16.646 --> 00:50:18.315 ABOUT LEARNING HOW TO MOST 00:50:18.382 --> 00:50:19.316 EFFICIENTLY AND EFFECTIVELY DO 00:50:19.383 --> 00:50:20.484 THAT. AND WE'RE GOING TO HEAR, 00:50:20.550 --> 00:50:22.352 I THINK, FROM THE EXPERTS, SOME 00:50:22.419 --> 00:50:23.653 OF WHOM I SEE WHEN WE'RE TRYING 00:50:23.720 --> 00:50:25.455 TO PAY FOR PARKING IN OUR IN 00:50:25.522 --> 00:50:27.090 OUR RESPECTIVE DISTRICTS. AND 00:50:27.157 --> 00:50:28.892 I'M LOOKING FORWARD TO LEARNING 00:50:28.959 --> 00:50:30.560 BECAUSE I THINK ALL OF US UP 00:50:30.627 --> 00:50:32.763 HERE ARE TRYING TO FIGURE OUT 00:50:32.829 --> 00:50:33.964 IN THIS ARMS RACE BETWEEN THE 00:50:34.030 --> 00:50:35.098 DIFFERENT STATES AND, FRANKLY, 00:50:35.165 --> 00:50:37.234 THE DIFFERENT COUNTRIES, WHERE 00:50:37.300 --> 00:50:38.602 CAN WE BE BETTER? BECAUSE 00:50:38.668 --> 00:50:40.003 CALIFORNIA IS ALWAYS BETTER. 00:50:40.070 --> 00:50:42.506 WE'RE SMARTER. WE HAVE THE 00:50:42.572 --> 00:50:44.374 TOOLS HERE TO DO THIS. IT'S 00:50:44.441 --> 00:50:46.510 JUST A MATTER OF IMPLEMENTING 00:50:46.576 --> 00:50:48.311 AND AND GETTING IT DONE. SO WE 00:50:48.378 --> 00:50:49.579 CAN DO THAT WITH THE LEADERS UP 00:50:49.646 --> 00:50:51.581 HERE. AND MR. CHAIR, THANK YOU 00:50:51.648 --> 00:50:52.616 AGAIN, AND I LOOK FORWARD TO 00:50:52.682 --> 00:50:54.851 THE DISCUSSION. THANK YOU FOR 00:50:54.918 --> 00:50:56.620 BEING HERE. THANK YOU. I'D LIKE 00:50:56.686 --> 00:50:58.422 TO RECOGNIZE ASSEMBLYMEMBER 00:50:58.488 --> 00:51:02.726 CARLOS. THANK YOU SO MUCH, 00:51:02.793 --> 00:51:04.561 CHAIR. HI, EVERYBODY. JESSICA 00:51:04.628 --> 00:51:05.962 CLOSA, ASSEMBLY MEMBER FOR 00:51:06.029 --> 00:51:08.832 DISTRICT 52. I REPRESENT 00:51:08.899 --> 00:51:10.300 NORTHEAST LA, SPANNING FROM 00:51:10.367 --> 00:51:12.836 EAST HOLLYWOOD, LOS FELIZ, ECHO 00:51:12.903 --> 00:51:14.271 PARK, SILVER LAKE, HIGHLAND 00:51:14.337 --> 00:51:16.406 PARK, CYPRESS PARK, MOUNT 00:51:16.473 --> 00:51:18.175 WASHINGTON, A LOT OF THE 00:51:18.241 --> 00:51:19.576 INCREDIBLE PLACES WHERE MANY OF 00:51:19.643 --> 00:51:20.911 YOU FILM AND I ALSO REPRESENT 00:51:20.977 --> 00:51:23.947 SOUTH GLENDALE AND EAST LA. AND 00:51:24.014 --> 00:51:26.817 SO ONE, FIRST, LET ME THANK MY 00:51:26.883 --> 00:51:28.251 SEATMATE, ONE OF MY FAVORITE 00:51:28.318 --> 00:51:29.786 PEOPLE IN THE ASSEMBLY, 00:51:29.853 --> 00:51:31.888 ASSEMBLY MEMBER, RICK CHÁVEZ Ã 00:51:31.955 --> 00:51:33.657 BURR. THIS IS, BY THE WAY, THE 00:51:33.723 --> 00:51:35.492 NICEST HEARING I'VE EVER BEEN 00:51:35.559 --> 00:51:38.795 TO. SO YOU KIND OF LEVELED UP 00:51:38.862 --> 00:51:40.163 OUR ASSEMBLY SELECT COMMITTEE 00:51:40.230 --> 00:51:42.332 GAME HERE BY HAVING US AT THE 00:51:42.399 --> 00:51:44.568 ACADEMY. AND SO I THANK YOU AS 00:51:44.634 --> 00:51:47.003 WELL TO ALL THE STAFF, THE 00:51:47.070 --> 00:51:48.438 CONSULTANTS, AND JUST EVERYONE 00:51:48.505 --> 00:51:50.273 WHO IS HERE TODAY TAKING TIME 00:51:50.340 --> 00:51:54.544 TO BE WITH US, TO COME UP WITH 00:51:54.611 --> 00:51:56.713 SOLUTIONS TO WHAT WE KNOW TO BE 00:51:56.780 --> 00:51:59.082 AN EXISTENTIAL CRISIS IMPACTING 00:51:59.149 --> 00:52:01.418 THE INDUSTRY AND THE STATE. 00:52:01.485 --> 00:52:03.920 THANKS AS WELL TO OUR SPEAKER 00:52:03.987 --> 00:52:06.056 RIVAS. OUR BUDGET CHAIR, JESSE 00:52:06.122 --> 00:52:09.292 GABRIEL, WHO BOTH I KNOW, ALSO 00:52:09.359 --> 00:52:11.862 CARE DEEPLY ABOUT THE INDUSTRY. 00:52:11.928 --> 00:52:13.630 FOR ME, THIS IS REALLY 00:52:13.697 --> 00:52:15.432 INCREDIBLY IMPORTANT TO BE HERE, 00:52:15.499 --> 00:52:16.867 THE DISTRICT THAT I REPRESENT, 00:52:16.933 --> 00:52:18.201 SOME OF THOSE NEIGHBORHOODS 00:52:18.268 --> 00:52:21.238 THAT I TALKED ABOUT ARE THE 00:52:21.304 --> 00:52:23.373 HOME TO NOT JUST A LOT OF 00:52:23.440 --> 00:52:24.875 FILMING IN LA, BUT ALSO HOME TO 00:52:24.941 --> 00:52:28.011 A LOT OF THE WORKERS. AND SO 00:52:28.078 --> 00:52:30.914 THAT IS SOMETHING THAT HAS BEEN 00:52:30.981 --> 00:52:32.883 VERY CLEAR TO ME FROM WHEN I 00:52:32.949 --> 00:52:34.985 WAS ELECTED IN 2024 UNTIL NOW. 00:52:35.051 --> 00:52:36.553 AND I'M IN THE NEIGHBORHOODS, 00:52:36.620 --> 00:52:37.988 TALKING TO MY CONSTITUENTS, 00:52:38.054 --> 00:52:40.657 TALKING TO MY NEIGHBORS THAT SO 00:52:40.724 --> 00:52:42.459 MANY OF THEM ARE STILL OUT OF 00:52:42.526 --> 00:52:44.928 WORK, EVEN WITH THE FILM TAX 00:52:44.995 --> 00:52:46.796 CREDIT, EVEN WITH SOME OF THE 00:52:46.863 --> 00:52:48.164 THINGS THAT WE KNOW WE'VE BEEN 00:52:48.231 --> 00:52:50.400 DOING TO STAY COMPETITIVE, TO 00:52:50.467 --> 00:52:51.801 MAKE SURE THAT HOLLYWOOD 00:52:51.868 --> 00:52:53.270 DOESN'T LEAVE CALIFORNIA, WE 00:52:53.336 --> 00:52:55.739 KNOW THAT WE NEED TO DO MORE. 00:52:55.805 --> 00:52:58.275 AND IT'S OUR WORKERS. IT IS OUR, 00:52:58.341 --> 00:52:59.776 YOU KNOW, ELECTRICIANS, OUR 00:52:59.843 --> 00:53:01.545 DRIVERS, OUR SET BUILDERS OR 00:53:01.611 --> 00:53:02.979 ACTORS OR ARTISTS. IT'S OUR 00:53:03.046 --> 00:53:05.448 SMALL BUSINESSES, IT'S OUR DRY 00:53:05.515 --> 00:53:07.984 CLEANERS, IT'S OUR RESTAURANTS. 00:53:08.051 --> 00:53:10.520 EVERYONE IS IMPACTED BY THE 00:53:10.587 --> 00:53:13.423 GREATER CREATIVE ECONOMY. AND 00:53:13.490 --> 00:53:15.859 JUST THE BENEFIT THAT THIS HAS 00:53:15.926 --> 00:53:18.428 TO EVERYBODY. AND SO I KNOW I'M 00:53:18.495 --> 00:53:21.298 DEEPLY COMMITTED TO THIS IN 00:53:21.364 --> 00:53:22.532 WORKING WITH OUR UNIONS, 00:53:22.599 --> 00:53:24.234 WORKING WITH THE INDUSTRY, 00:53:24.301 --> 00:53:25.902 WORKING WITH ALL THE ARTISTS 00:53:25.969 --> 00:53:27.404 AND ACTORS WHO ARE HERE. THANK 00:53:27.470 --> 00:53:30.340 YOU FOR YOUR ADVOCACY. WE ARE 00:53:30.407 --> 00:53:33.243 REALLY LOOKING FORWARD TO 00:53:33.310 --> 00:53:34.611 GETTING A HEAD START FOR THE 00:53:34.678 --> 00:53:36.479 NEXT LEGISLATIVE SESSION. 00:53:36.546 --> 00:53:38.648 THANKS TO OUR CHAIR AND 00:53:38.715 --> 00:53:39.683 HOPEFULLY FIGURING OUT WHAT 00:53:39.749 --> 00:53:42.185 MORE WE CAN DO IN LEGISLATION 00:53:42.252 --> 00:53:45.055 TO ENSURE THAT WE KEEP 00:53:45.121 --> 00:53:47.257 HOLLYWOOD IN CALIFORNIA, WE 00:53:47.324 --> 00:53:49.759 KEEP FILMING IN CALIFORNIA, AND 00:53:49.826 --> 00:53:51.528 THAT WE KNOW THAT THERE'S SO 00:53:51.595 --> 00:53:53.697 MUCH AT STAKE. AND SO WE WE 00:53:53.763 --> 00:53:55.565 KNOW THAT SENSE OF URGENCY. WE 00:53:55.632 --> 00:53:57.400 SEE THAT SENSE OF URGENCY. AND 00:53:57.467 --> 00:53:58.735 I KNOW THAT YOU HAVE THE 00:53:58.802 --> 00:54:00.337 COMMITMENT FROM SO MANY PEOPLE 00:54:00.403 --> 00:54:01.538 HERE AND SO MANY PEOPLE WHO 00:54:01.605 --> 00:54:03.440 AREN'T HERE, THAT WE WANT TO DO 00:54:03.506 --> 00:54:05.942 MORE IN 2027. SO THANK YOU 00:54:06.009 --> 00:54:08.144 AGAIN TO MY SEATMATE AND OUR, 00:54:08.211 --> 00:54:09.913 OUR MISTER CHAIR FOR, FOR 00:54:09.980 --> 00:54:13.183 HAVING US. SO THANK YOU SO MUCH. 00:54:13.249 --> 00:54:15.385 THANK YOU, THANK YOU. I WANT TO 00:54:15.452 --> 00:54:16.586 THANK ALL OF MY COLLEAGUES HERE. 00:54:16.653 --> 00:54:18.888 I THINK THE FOLKS THAT YOU SEE 00:54:18.955 --> 00:54:21.024 UP HERE TOWARDS THE BOTH LAST 00:54:21.091 --> 00:54:22.525 YEAR AND THE END OF THE SESSION 00:54:22.592 --> 00:54:24.160 THIS YEAR, I MEAN, WE WERE ON 00:54:24.227 --> 00:54:26.029 THE PHONE, I THINK EVERY DAY, 00:54:26.096 --> 00:54:27.097 REALLY COUNTING VOTES TO MAKE 00:54:27.163 --> 00:54:30.133 SURE THAT WE WERE GETTING THE, 00:54:30.200 --> 00:54:32.202 THE, THE, THE BUDGET BILL OVER 00:54:32.268 --> 00:54:33.436 THE LINE. AND I JUST WANT TO 00:54:33.503 --> 00:54:35.305 THANK ALL OF THEM BECAUSE THIS 00:54:35.372 --> 00:54:36.539 HAS BEEN A PARTNERSHIP OF ALL 00:54:36.606 --> 00:54:38.375 OF US AND SOME OTHERS THAT ARE 00:54:38.441 --> 00:54:40.910 NOT HERE TODAY. WITH THAT, I'D 00:54:40.977 --> 00:54:42.212 LIKE TO WELCOME AND INTRODUCE 00:54:42.278 --> 00:54:44.681 OUR FIRST PANEL ON MAINTAINING 00:54:44.748 --> 00:54:45.548 AND GROWING THE CREATIVE 00:54:45.615 --> 00:54:48.451 ECONOMY IN CALIFORNIA. FIRST, 00:54:48.518 --> 00:54:49.619 WE'VE GOT MIKE MILLER, WHO'S 00:54:49.686 --> 00:54:50.920 THE THIRD INTERNATIONAL VICE 00:54:50.987 --> 00:54:52.422 PRESIDENT FOR THE INTERNATIONAL 00:54:52.489 --> 00:54:54.190 ALLIANCE OF THEATRICAL STAGE 00:54:54.257 --> 00:54:55.692 EMPLOYEES, IATSE, AND THE 00:54:55.759 --> 00:54:56.693 DEPARTMENT DIRECTOR FOR THE 00:54:56.760 --> 00:54:58.161 MOTION PICTURE AND TELEVISION 00:54:58.228 --> 00:54:59.329 PRODUCTION. WE ALSO HAVE WITH 00:54:59.396 --> 00:55:01.031 US GINA RODRIGUEZ, AN ACTRESS, 00:55:01.097 --> 00:55:02.465 DIRECTOR AND PRODUCER, AND THE 00:55:02.532 --> 00:55:04.267 FOUNDER OF I CAN AND I WILL 00:55:04.334 --> 00:55:06.403 PRODUCTIONS. WE'VE GOT LINDSEY 00:55:06.469 --> 00:55:07.837 DOHERTY, WHO HAS SERVED AS 00:55:07.904 --> 00:55:09.739 RECORDING SECRETARY, BUSINESS 00:55:09.806 --> 00:55:11.174 AGENT AND LEAD ORGANIZER AT 00:55:11.241 --> 00:55:13.977 LOCAL 399, REPRESENTING OVER 00:55:14.044 --> 00:55:15.845 6000 MOVIE TEAMSTERS IN 00:55:15.912 --> 00:55:17.981 HOLLYWOOD. IN HOLLYWOOD. SHE IS 00:55:18.048 --> 00:55:19.049 CURRENTLY THE TEAMSTERS 00:55:19.115 --> 00:55:20.517 AT-LARGE VICE PRESIDENT AND 00:55:20.583 --> 00:55:22.285 DIRECTOR OF THE MOTION PICTURE 00:55:22.352 --> 00:55:24.087 DIVISION. WE ALSO HAVE JASON 00:55:24.154 --> 00:55:26.022 GEORGE, A RENOWNED ACTOR AND 00:55:26.089 --> 00:55:27.957 WHO SERVES AS A CO-CHAIR OF THE 00:55:28.024 --> 00:55:28.958 NATIONAL GOVERNMENT AFFAIRS AND 00:55:29.025 --> 00:55:30.360 PUBLIC POLICY COMMITTEE AND IS 00:55:30.427 --> 00:55:32.328 A NATIONAL BOARD MEMBER WITH 00:55:32.395 --> 00:55:33.830 SAG-AFTRA. AND OF COURSE, WE 00:55:33.897 --> 00:55:35.632 HAVE REBECCA RYAN, WHO IS THE 00:55:35.699 --> 00:55:37.100 ASSOCIATE NATIONAL EXECUTIVE 00:55:37.167 --> 00:55:38.468 DIRECTOR AND WESTERN EXECUTIVE 00:55:38.535 --> 00:55:39.669 DIRECTOR OF THE DIRECTORS GUILD 00:55:39.736 --> 00:55:41.371 OF AMERICA, AND ADDITIONALLY, 00:55:41.438 --> 00:55:42.772 THE PRESIDENT OF THE 00:55:42.839 --> 00:55:44.240 ENTERTAINMENT UNION COALITION, 00:55:44.307 --> 00:55:45.709 WHICH COLLECTIVELY REPRESENTS 00:55:45.775 --> 00:55:48.144 OVER 167,000 MEMBERS WHO LIVE 00:55:48.211 --> 00:55:49.612 AND WORK IN CALIFORNIA'S 00:55:49.679 --> 00:55:51.114 ENTERTAINMENT INDUSTRY. SO I'D 00:55:51.181 --> 00:55:52.582 LIKE TO ASK EACH OF THE 00:55:52.649 --> 00:55:53.650 PANELISTS TO LIMIT YOUR 00:55:53.717 --> 00:55:55.285 COMMENTS TO ABOUT FIVE MINUTES. 00:55:55.351 --> 00:55:57.087 AND I'D LIKE TO START WITH MR. 00:55:57.153 --> 00:55:58.354 MILLER. THANK YOU VERY MUCH, 00:55:58.421 --> 00:56:00.090 AND I APPRECIATE THE 00:56:00.156 --> 00:56:01.458 REQUIREMENT TO PUT MY COMMENTS 00:56:01.524 --> 00:56:02.525 IN WRITING, BECAUSE IT'S THE 00:56:02.592 --> 00:56:04.494 ONLY WAY YOU'LL KEEP ME TO FIVE 00:56:04.561 --> 00:56:05.929 MINUTES ON THIS ISSUE. I DO 00:56:05.995 --> 00:56:07.163 WANT TO TAKE THE OPPORTUNITY, 00:56:07.230 --> 00:56:08.732 MR. CHAIRMAN, TO THANK YOU NOT 00:56:08.798 --> 00:56:11.234 ONLY FOR YOUR LEADERSHIP TODAY, 00:56:11.301 --> 00:56:13.036 BUT FOR YOUR PAST AND YOUR 00:56:13.103 --> 00:56:15.105 ONGOING LEADERSHIP. AND TO ALL 00:56:15.171 --> 00:56:16.306 THE MEMBERS OF THE COMMITTEE, 00:56:16.372 --> 00:56:18.108 VERY MUCH APPRECIATE YOUR 00:56:18.174 --> 00:56:21.411 ADVOCACY, AND I HOPE THAT WHAT 00:56:21.478 --> 00:56:23.480 WE CAN PROVIDE TODAY IS 00:56:23.546 --> 00:56:25.281 ADDITIONAL INFORMATION TO 00:56:25.348 --> 00:56:26.783 SUPPORT THE INSIGHTFUL COMMENTS 00:56:26.850 --> 00:56:28.384 THAT EACH OF YOU MADE IN YOUR 00:56:28.451 --> 00:56:30.053 OPENING REMARKS. AND I DO FEEL 00:56:30.120 --> 00:56:31.621 A LITTLE BIT LIKE I'M PREACHING 00:56:31.688 --> 00:56:33.823 TO THE CHOIR, WHICH I THINK IS 00:56:33.890 --> 00:56:35.458 A GOOD THING, BECAUSE THE MORE 00:56:35.525 --> 00:56:36.459 FOLKS THAT UNDERSTAND OUR 00:56:36.526 --> 00:56:38.027 INDUSTRY, THE MORE IMPORTANT IT 00:56:38.094 --> 00:56:40.363 IS. AND, YOU KNOW, IN YOUR 00:56:40.430 --> 00:56:41.498 INTRODUCTION OF ME, YOU STATED 00:56:41.564 --> 00:56:43.233 MY POSITION. AND IN THAT 00:56:43.299 --> 00:56:44.334 POSITION, I THINK IT'S 00:56:44.400 --> 00:56:45.702 IMPORTANT TO NOTE THAT I ALSO 00:56:45.769 --> 00:56:48.338 HAVE RESPONSIBILITY FOR 00:56:48.404 --> 00:56:49.372 CONTRACTS AND MOTION PICTURE 00:56:49.439 --> 00:56:50.840 PRODUCTION ACROSS THE UNITED 00:56:50.907 --> 00:56:53.009 STATES. AND THAT GIVES ME AN 00:56:53.076 --> 00:56:54.511 INTERESTING AND REALLY 00:56:54.577 --> 00:56:56.246 APPROPRIATE PERSPECTIVE ON THE 00:56:56.312 --> 00:56:57.413 SITUATION THAT OUR I. Ã 00:56:57.480 --> 00:56:59.783 MEMBERS FACE HERE IN CALIFORNIA. 00:56:59.849 --> 00:57:02.385 THE MAJORITY OF ITS MEMBERS WHO 00:57:02.452 --> 00:57:04.154 WORK IN FILM AND TELEVISION 00:57:04.220 --> 00:57:06.389 PRODUCTION LIVE IN CALIFORNIA 00:57:06.456 --> 00:57:09.225 AND IN CALIFORNIA. WE REPRESENT 00:57:09.292 --> 00:57:10.293 52,000 PEOPLE THROUGHOUT 00:57:10.360 --> 00:57:12.462 CALIFORNIA WHO WHO WORK IN ALL 00:57:12.529 --> 00:57:14.597 DIFFERENT CRAFT SPECIFIC LOCALS. 00:57:14.664 --> 00:57:16.432 AND THERE'S NO MORE IMPORTANT 00:57:16.499 --> 00:57:17.867 ISSUE TO THESE CONSTITUENTS AND 00:57:17.934 --> 00:57:18.935 THEIR FAMILIES THAN THEIR 00:57:19.002 --> 00:57:21.571 ABILITY TO WORK AND LIVE. HERE 00:57:21.638 --> 00:57:24.340 IN CALIFORNIA. WE'VE SEEN A 00:57:24.407 --> 00:57:25.942 DOWNWARD SPIRAL OF OPPORTUNITY 00:57:26.009 --> 00:57:27.777 THAT BEGAN AS A TRICKLE, AND IN 00:57:27.844 --> 00:57:28.978 THE LAST FEW YEARS HAS BECOME A 00:57:29.045 --> 00:57:31.548 DELUGE. WHAT MAKES OUR INDUSTRY 00:57:31.614 --> 00:57:33.249 SO TEMPTING FOR OTHERS IS NOT 00:57:33.316 --> 00:57:35.051 JUST ITS HIGH VISIBILITY, NOT 00:57:35.118 --> 00:57:36.786 JUST ITS GREAT REVENUE 00:57:36.853 --> 00:57:38.588 GENERATION, NOT JUST THE 00:57:38.655 --> 00:57:41.157 AMAZING MIDDLE CLASS UNION JOBS 00:57:41.224 --> 00:57:42.625 WITH HEALTH CARE AND PENSIONS 00:57:42.692 --> 00:57:44.861 THAT IT PROVIDES. BUT IT'S ALSO 00:57:44.928 --> 00:57:47.630 A HIGHLY MOBILE INDUSTRY. IT'S 00:57:47.697 --> 00:57:49.065 ONE WHERE LEGISLATION CAN BE 00:57:49.132 --> 00:57:51.267 PASSED ON. ONE DAY, A HANDFUL 00:57:51.334 --> 00:57:52.669 OF PLANE TICKETS CAN BE BOUGHT 00:57:52.735 --> 00:57:54.904 THE NEXT DAY, THE NEXT DAY, AND 00:57:54.971 --> 00:57:57.006 AN EQUIVALENT OF A OF A 00:57:57.073 --> 00:57:59.509 MID-SIZED MANUFACTURING COMPANY 00:57:59.576 --> 00:58:01.277 OR CORPORATION OR PLANT CAN BE 00:58:01.344 --> 00:58:02.779 MOVED OVERNIGHT OUT OF 00:58:02.846 --> 00:58:03.847 CALIFORNIA WITH JUST THAT 00:58:03.913 --> 00:58:05.348 HANDFUL OF PLANE TICKETS. AND 00:58:05.415 --> 00:58:08.151 THAT HANDFUL OF PLANE TICKETS 00:58:08.218 --> 00:58:09.919 ISN'T GOING TO THE BELOW THE 00:58:09.986 --> 00:58:11.354 LINE FOLKS THAT THAT I 00:58:11.421 --> 00:58:12.789 REPRESENT THAT THAT HANDFUL OF 00:58:12.856 --> 00:58:14.557 PLANE TICKETS, THEY'RE NOT 00:58:14.624 --> 00:58:16.092 TAKING MEMBERS OUT OF 00:58:16.159 --> 00:58:18.161 CALIFORNIA THE LAST FEW YEARS 00:58:18.228 --> 00:58:19.596 THE WAY THEY DID IN THE HEYDAY 00:58:19.662 --> 00:58:21.064 OF CALIFORNIA PRODUCTION, WHERE 00:58:21.130 --> 00:58:23.600 YOU WENT ON LOCATION TO DO A 00:58:23.666 --> 00:58:24.701 PARTICULAR PORTION OF YOUR 00:58:24.767 --> 00:58:26.502 PRODUCTION, AND YOU TOOK YOUR 00:58:26.569 --> 00:58:28.638 CALIFORNIA CREW WITH YOU. THAT 00:58:28.705 --> 00:58:30.540 DOESN'T EXIST ANYMORE. AND MANY 00:58:30.607 --> 00:58:32.075 OF THESE OTHER JURISDICTIONS 00:58:32.141 --> 00:58:35.111 THAT HAVE CREATED, THAT HAVE 00:58:35.178 --> 00:58:36.946 CREATED THESE INCENTIVE 00:58:37.013 --> 00:58:38.715 PROGRAMS ARE DESIGNED AROUND 00:58:38.781 --> 00:58:40.550 THAT. AND THOSE INCENTIVE 00:58:40.617 --> 00:58:42.685 PROGRAMS ARE DESIGNED TO TAKE 00:58:42.752 --> 00:58:44.587 CALIFORNIA JOBS, TRANSFER THEM 00:58:44.654 --> 00:58:46.256 TO OTHER COUNTRIES AND 00:58:46.322 --> 00:58:49.158 JURISDICTIONS, AND AGGRESSIVELY 00:58:49.225 --> 00:58:51.527 PREVENT CALIFORNIA TECHNICIANS 00:58:51.594 --> 00:58:52.862 AND ARTISTS FROM TRAVELING WITH 00:58:52.929 --> 00:58:54.230 THEM BECAUSE THEY DON'T QUALIFY 00:58:54.297 --> 00:58:56.766 FOR THOSE INCENTIVES IN THOSE 00:58:56.833 --> 00:59:00.703 STATES. WE APPRECIATE THE 00:59:00.770 --> 00:59:02.906 EFFORTS, MR. CHAIR, AND ALL THE 00:59:02.972 --> 00:59:03.973 MEMBERS OF THIS COMMITTEE, TO 00:59:04.040 --> 00:59:05.508 APPROVE THE CALIFORNIA FILM AND 00:59:05.575 --> 00:59:07.911 TELEVISION JOBS IN 2025, AND WE 00:59:07.977 --> 00:59:09.345 WERE REALLY PROUD TO WORK WITH 00:59:09.412 --> 00:59:11.180 YOU TOWARDS PASSAGE ON THIS 00:59:11.247 --> 00:59:13.549 IMPORTANT ISSUE. AND AS ALL OF 00:59:13.616 --> 00:59:15.485 YOU KNOW WELL, WE STILL OUR 00:59:15.551 --> 00:59:17.620 INCENTIVE PROGRAM STILL LAGS 00:59:17.687 --> 00:59:19.022 BEHIND OTHER STATES AND MORE 00:59:19.088 --> 00:59:20.890 IMPORTANTLY, OTHER COUNTRIES IN 00:59:20.957 --> 00:59:23.726 THE FIGHT TO GAIN AND RETURN, 00:59:23.793 --> 00:59:25.561 RETAIN FILM AND TELEVISION 00:59:25.628 --> 00:59:26.596 PRODUCTION. THE RESULTS ARE 00:59:26.663 --> 00:59:28.031 REAL AND THE RESULTS ARE 00:59:28.097 --> 00:59:29.832 DEVASTATING. JUST LAST WEEK, IT 00:59:29.899 --> 00:59:31.000 WAS REPORTED THAT NEW YORK CITY 00:59:31.067 --> 00:59:33.102 IS POISED TO TAKE THE FILM 00:59:33.169 --> 00:59:34.537 CAPITAL AWAY FROM LOS ANGELES, 00:59:34.604 --> 00:59:37.473 CALIFORNIA. JUST TODAY, THE LA 00:59:37.540 --> 00:59:39.542 TIMES HAS AN ARTICLE ABOUT THE 00:59:39.609 --> 00:59:41.010 EFFECTIVENESS OF THE INCENTIVE 00:59:41.077 --> 00:59:43.179 IN IRELAND, WHO HAS NOW 00:59:43.246 --> 00:59:46.382 EXCEEDED $632 MILLION IN 00:59:46.449 --> 00:59:50.720 PRODUCTION A YEAR. IT'S 00:59:50.787 --> 00:59:52.488 IMPORTANT TO NOTE THAT FOR OUR 00:59:52.555 --> 00:59:56.826 MEMBERS, CALIFORNIA HAS MORE 00:59:56.893 --> 01:00:00.129 THAN FIVE TIMES THE NUMBER OF 01:00:00.196 --> 01:00:01.497 FILM INDUSTRY WORKERS THAN NEW 01:00:01.564 --> 01:00:03.333 YORK HAS. AND WHEN YOU TAKE 01:00:03.399 --> 01:00:04.400 BROADWAY OUT OF THE 01:00:04.467 --> 01:00:05.902 ENTERTAINMENT ENTERTAINMENT 01:00:05.969 --> 01:00:08.371 COMPONENT, IT'S. IT'S 5 TO 10 01:00:08.438 --> 01:00:10.006 TIMES THE NUMBER OF FILM 01:00:10.073 --> 01:00:11.207 WORKERS IN LOS ANGELES THAT WE 01:00:11.274 --> 01:00:14.444 HAVE IN NEW YORK. BUT YET THEY 01:00:14.510 --> 01:00:15.979 ARE POISED TO HAVE THE SAME 01:00:16.045 --> 01:00:17.680 LEVEL OF PRODUCTION AS 01:00:17.747 --> 01:00:20.283 CALIFORNIA DOES. SO IN ADDITION 01:00:20.350 --> 01:00:23.853 TO HAVING THE THE MOST MONEY, 01:00:23.920 --> 01:00:25.254 IT'S ALSO IMPORTANT THAT IT BE 01:00:25.321 --> 01:00:26.856 RECOGNIZED ON A PRO RATA BASIS, 01:00:26.923 --> 01:00:28.624 BECAUSE THEIR INDUSTRY IS 20% 01:00:28.691 --> 01:00:30.760 OF THE SIZE OF THE CALIFORNIA 01:00:30.827 --> 01:00:31.761 INDUSTRY, YET THEY HAVE 01:00:31.828 --> 01:00:36.466 INCENTIVE PROGRAMS THAT ARE. I 01:00:36.532 --> 01:00:38.968 HESITATE TO USE THE WORD BETTER 01:00:39.035 --> 01:00:42.905 BECAUSE I DO. BUT I THINK IT'S 01:00:42.972 --> 01:00:44.374 IMPORTANT TO NOTE THAT 01:00:44.440 --> 01:00:45.808 PROPORTION AND SCALE IS EVERY 01:00:45.875 --> 01:00:47.577 BIT AS IMPORTANT AS FINAL 01:00:47.643 --> 01:00:50.546 DOLLAR AMOUNT. SO THEY HAVE 01:00:50.613 --> 01:00:51.714 $800 MILLION IN NEW YORK, AND 01:00:51.781 --> 01:00:54.450 WE HAVE $750 MILLION IN 01:00:54.517 --> 01:00:55.885 CALIFORNIA. THOSE ARE NOWHERE 01:00:55.952 --> 01:00:58.788 NEAR EQUIVALENT BECAUSE OUR 01:00:58.855 --> 01:01:01.290 INDUSTRY IS IS FIVE TIMES THE 01:01:01.357 --> 01:01:04.227 SIZE. ONE OF THE BEST AND MOST 01:01:04.293 --> 01:01:05.561 ACCURATE DATA POINTS ON WHAT'S 01:01:05.628 --> 01:01:06.696 HAPPENING COMES THROUGH OUR 01:01:06.763 --> 01:01:07.764 MOTION PICTURE INDUSTRY, 01:01:07.830 --> 01:01:09.232 PENSION AND HEALTH PLANS. THESE 01:01:09.298 --> 01:01:10.333 ARE THE HEALTH AND PENSION 01:01:10.400 --> 01:01:11.501 PLANS THAT WERE CREATED DECADES 01:01:11.567 --> 01:01:12.802 AGO THROUGH COLLECTIVE 01:01:12.869 --> 01:01:14.270 BARGAINING THAT COVERS HEALTH 01:01:14.337 --> 01:01:16.005 CARE AND RETIREMENT BENEFITS 01:01:16.072 --> 01:01:18.174 FOR IATSE, THE TEAMSTERS, THE 01:01:18.241 --> 01:01:20.710 BASIC CRAFTS, LIUNA AND 01:01:20.777 --> 01:01:22.111 THOUSANDS OF OTHERS IN OUR 01:01:22.178 --> 01:01:25.048 INDUSTRY. IN OUR INDUSTRY. DUE 01:01:25.114 --> 01:01:26.716 TO THE FREELANCE NATURE OF THE 01:01:26.783 --> 01:01:27.917 WORK, A FAMILY'S HEALTH 01:01:27.984 --> 01:01:29.318 COVERAGE IS DIRECTLY TIED TO 01:01:29.385 --> 01:01:32.188 THE HOURS THAT THEY WORK UNDER 01:01:32.255 --> 01:01:34.424 CONTRACTS, WHERE THEY LIVE OR 01:01:34.490 --> 01:01:36.492 ON LOCATION. AND THAT DATA 01:01:36.559 --> 01:01:37.927 SHOWS US VERY CLEARLY WHAT 01:01:37.994 --> 01:01:39.429 EMPLOYMENT LOOKS LIKE. AND WHAT 01:01:39.495 --> 01:01:42.465 IT SHOWS IS THAT AT 2022, WE 01:01:42.532 --> 01:01:44.834 HAD 123,000,000 HOURS OF 01:01:44.901 --> 01:01:46.669 EMPLOYMENT CONTRIBUTED TO THOSE 01:01:46.736 --> 01:01:52.442 PLANS. AND IN 2024, 2025, 01:01:52.508 --> 01:01:55.211 RATHER, WE HAD 79,000,000 HOURS 01:01:55.278 --> 01:01:56.379 OF EMPLOYMENT CONTRIBUTED TO 01:01:56.446 --> 01:01:59.649 THOSE PLANS, 45,000,000 HOURS 01:01:59.715 --> 01:02:01.350 OF EMPLOYMENT HAVE DISAPPEARED 01:02:01.417 --> 01:02:04.987 ON AN ANNUALIZED BASIS SINCE 01:02:05.054 --> 01:02:07.523 2022. A JOB LOSS OF THIS 01:02:07.590 --> 01:02:08.958 MAGNITUDE IN A TYPICAL 01:02:09.025 --> 01:02:09.792 MANUFACTURING ENVIRONMENT WOULD 01:02:09.859 --> 01:02:11.828 MEAN THE CLOSING OF MULTIPLE 01:02:11.894 --> 01:02:13.629 PLANTS IN FILM AND TELEVISION 01:02:13.696 --> 01:02:14.697 PRODUCTION. THERE'S NO 01:02:14.764 --> 01:02:17.233 DIFFERENCE THE RESULTS THE SAME. 01:02:17.300 --> 01:02:18.768 IT'S JUST LESS VISIBLE BECAUSE 01:02:18.835 --> 01:02:20.103 OF THE FREELANCE NATURE. 01:02:20.169 --> 01:02:21.904 NOBODY'S PUTTING A CLOSED SIGN 01:02:21.971 --> 01:02:23.806 ON THE DOOR, OUT ON THE DOOR, 01:02:23.873 --> 01:02:25.875 ON THE OUTSIDE OF THAT PLANT. 01:02:25.942 --> 01:02:26.876 IT'S JUST THOSE PRODUCTIONS 01:02:26.943 --> 01:02:28.377 THAT ARE NO LONGER EXISTING ARE 01:02:28.444 --> 01:02:31.647 HAPPENING HERE. OBVIOUSLY, THIS 01:02:31.714 --> 01:02:33.015 LEVEL OF JOB LOSS AND LOSS OF 01:02:33.082 --> 01:02:34.117 HEALTH CARE COVERAGE AND 01:02:34.183 --> 01:02:35.218 PENSIONS IS DEVASTATING TO 01:02:35.284 --> 01:02:36.285 PEOPLE THAT HAVE SPENT THEIR 01:02:36.352 --> 01:02:37.386 LIVES BUILDING THE SKILLS AND 01:02:37.453 --> 01:02:38.154 KNOWLEDGE, WHO MADE A 01:02:38.221 --> 01:02:39.222 COMMITMENT TO WORKING AND 01:02:39.288 --> 01:02:41.057 LIVING IN CALIFORNIA AND NOW 01:02:41.124 --> 01:02:43.893 HAVE FEWER PROSPECTS AND LITTLE 01:02:43.960 --> 01:02:46.395 LESS OR NO INCOME. IT'S ALSO 01:02:46.462 --> 01:02:47.463 DEVASTATING FOR THEIR FAMILIES, 01:02:47.530 --> 01:02:48.931 WHO FACE A LOSS OF HEALTH 01:02:48.998 --> 01:02:50.733 INSURANCE AND BENEFIT COVERAGE. 01:02:50.800 --> 01:02:52.435 AND THAT'S A PROBLEM FOR THE 01:02:52.502 --> 01:02:54.337 STATE, BECAUSE INSTEAD OF 01:02:54.403 --> 01:02:55.738 BECOMING CONTRIBUTORS TO THE 01:02:55.805 --> 01:02:57.206 CALIFORNIA ECONOMY, THESE 01:02:57.273 --> 01:02:58.207 WORKERS ARE FORCED TO BECOME 01:02:58.274 --> 01:02:59.709 DEPENDENT ON THE STATE'S SAFETY 01:02:59.775 --> 01:03:01.844 NET. SO IT'S A DOUBLE HIT TO 01:03:01.911 --> 01:03:04.714 THE STATE. THERE ARE ALSO MORE 01:03:04.780 --> 01:03:06.382 LONG TERM DEVASTATING IMPACTS 01:03:06.449 --> 01:03:07.984 THAT ARE VERY REAL, IF NOT 01:03:08.050 --> 01:03:09.452 IMMEDIATELY VISIBLE. THE MIDDLE 01:03:09.519 --> 01:03:10.920 CLASS JOBS WITH BENEFITS, A 01:03:10.987 --> 01:03:12.655 HIGHLY UNIONIZED INDUSTRY. IF 01:03:12.722 --> 01:03:14.323 THIS ECOSYSTEM IS DISMANTLED, 01:03:14.390 --> 01:03:15.825 IF THE WORKERS IN OUR INDUSTRY 01:03:15.892 --> 01:03:16.959 ARE FORCED TO LEAVE IT, IF 01:03:17.026 --> 01:03:18.828 SMALL BUSINESSES HAVE TO SHUT 01:03:18.895 --> 01:03:20.296 THEIR DOORS, THEN THESE JOBS 01:03:20.363 --> 01:03:21.397 AND THE INFRASTRUCTURE THAT 01:03:21.464 --> 01:03:23.466 HAVE BEEN CALIFORNIANS FOR 100 01:03:23.533 --> 01:03:25.601 YEARS WILL NOT EASILY BE 01:03:25.668 --> 01:03:27.069 REPLACED WHEN THESE 01:03:27.136 --> 01:03:28.504 ENTERTAINMENT INDUSTRY JOBS, 01:03:28.571 --> 01:03:30.339 AND I MIGHT ADD, REPRESENT WHAT 01:03:30.406 --> 01:03:32.141 POLICY MAKERS KNOW WHAT THOSE 01:03:32.208 --> 01:03:33.609 OF YOU ON THIS PANEL KNOW ARE 01:03:33.676 --> 01:03:35.411 ONE OF THE BACKBONES OF OUR 01:03:35.478 --> 01:03:37.880 STRONG ECONOMY IN CALIFORNIA 01:03:37.947 --> 01:03:39.949 ARE GONE. THEN THE STATE AND 01:03:40.016 --> 01:03:40.883 LOCAL GOVERNMENTS ARE GOING TO 01:03:40.950 --> 01:03:42.718 BE VERY HARD PRESSED TO FILL 01:03:42.785 --> 01:03:45.454 THAT GAP WHEN ALL THE SMALL 01:03:45.521 --> 01:03:46.489 BUSINESSES THAT SUPPORT OUR 01:03:46.556 --> 01:03:47.590 INDUSTRY ARE SHUTTERED. 01:03:47.657 --> 01:03:49.392 BRINGING THEM BACK WILL BE HARD, 01:03:49.458 --> 01:03:51.928 IF NOT IMPOSSIBLE. WHEN 01:03:51.994 --> 01:03:53.396 SOUNDSTAGES ARE EMPTY, THEN, AS 01:03:53.462 --> 01:03:55.131 ONE TRADES ARTICLE SAID THIS 01:03:55.198 --> 01:03:56.566 WEEK, THEY BECOME PLACES TO 01:03:56.632 --> 01:03:58.668 HOLD PARTIES, NOT PART OF A 01:03:58.734 --> 01:04:01.270 THRIVING ECONOMY. ANOTHER 01:04:01.337 --> 01:04:02.705 ARTICLE THIS MORNING IN THE LA 01:04:02.772 --> 01:04:04.640 TIMES TALKED ABOUT THE CLOSING 01:04:04.707 --> 01:04:06.676 OF CHILDCARE CENTERS IN LOS 01:04:06.742 --> 01:04:08.110 ANGELES AND THE LOSS OF CHILD 01:04:08.177 --> 01:04:12.014 CARE DUE TO THE DOWNTURN OF THE 01:04:12.081 --> 01:04:13.883 ENTERTAINMENT INDUSTRY IN 01:04:13.950 --> 01:04:16.352 CALIFORNIA. THOSE TYPES OF 01:04:16.419 --> 01:04:18.554 RESIDUAL EFFECTS ARE NOT ALWAYS 01:04:18.621 --> 01:04:20.323 APPARENT, BUT IT'S MEANINGFUL 01:04:20.389 --> 01:04:22.158 WHEN CHILD CARE IN CALIFORNIA 01:04:22.225 --> 01:04:25.394 NOW EXCEEDS $4,000 A MONTH, IT 01:04:25.461 --> 01:04:26.829 BECOMES A SIGNIFICANT DRAIN ON 01:04:26.896 --> 01:04:28.664 THE ECONOMY. AND WHEN THOSE 01:04:28.731 --> 01:04:30.066 OPPORTUNITIES DRY UP FOR PEOPLE 01:04:30.132 --> 01:04:31.801 TO PROVIDE HEALTH CARE, HOW DO 01:04:31.867 --> 01:04:32.902 THEY SUPPORT THEIR FAMILIES IF 01:04:32.969 --> 01:04:34.804 THEY DON'T HAVE TO RELY ON THE 01:04:34.870 --> 01:04:35.972 STATE SAFETY NET, WHICH BECOMES 01:04:36.038 --> 01:04:38.341 AN ADDITIONAL DRAIN? FINALLY, 01:04:38.407 --> 01:04:39.809 THERE ARE LONG TERM 01:04:39.875 --> 01:04:40.876 REPERCUSSIONS OF AN INDUSTRY 01:04:40.943 --> 01:04:42.311 SHUTTING ITS DOORS TO YOUNG 01:04:42.378 --> 01:04:43.746 PEOPLE WHO HAVE THE TALENT AND 01:04:43.813 --> 01:04:45.548 DESIRE TO WORK IN FILM AND 01:04:45.615 --> 01:04:47.316 TELEVISION. OUR INDUSTRY HAS 01:04:47.383 --> 01:04:49.085 JOBS FOR PEOPLE AT ALL LEVELS 01:04:49.151 --> 01:04:51.320 OF EDUCATION AND FOR MANY 01:04:51.387 --> 01:04:53.089 DIFFERENT TYPES OF SKILL SETS. 01:04:53.155 --> 01:04:56.125 IN THE PAST, EFFORTS AND ALL OF 01:04:56.192 --> 01:04:57.627 THE OTHER UNIONS INVOLVED HAVE 01:04:57.693 --> 01:04:59.595 PUT RESOURCES INTO CREATING 01:04:59.662 --> 01:05:01.097 PROGRAMS THAT WOULD HELP PEOPLE 01:05:01.163 --> 01:05:03.199 JUMP OVER, JUMP OVER THE REAL 01:05:03.266 --> 01:05:04.634 AND THE PERCEIVED BARRIERS TO 01:05:04.700 --> 01:05:07.136 ENTRY IN OUR INDUSTRY. BUT 01:05:07.203 --> 01:05:08.571 TODAY IN CALIFORNIA, THIS IS 01:05:08.638 --> 01:05:10.706 NOT A PLACE TO BUILD A CAREER, 01:05:10.773 --> 01:05:12.275 AS SO MANY GENERATIONS BEFORE 01:05:12.341 --> 01:05:14.744 US HAVE BEEN ABLE TO DO. IT'S 01:05:14.810 --> 01:05:16.112 NOT A PLACE OF OPPORTUNITY FOR 01:05:16.178 --> 01:05:17.680 YOUNG PEOPLE. IT'S NOT A PLACE 01:05:17.747 --> 01:05:19.382 OF OPPORTUNITY FOR PEOPLE OF 01:05:19.448 --> 01:05:21.851 COLOR. AND QUITE BLUNTLY, IF 01:05:21.917 --> 01:05:24.053 THERE ARE NO JOBS, THERE CAN BE 01:05:24.120 --> 01:05:25.488 NO EFFECTIVE TRAINING PROGRAMS 01:05:25.554 --> 01:05:26.922 BECAUSE THERE ARE NO 01:05:26.989 --> 01:05:28.391 OPPORTUNITIES IN TRAINING 01:05:28.457 --> 01:05:30.726 PEOPLE FOR FOLKS, TRAINING 01:05:30.793 --> 01:05:32.461 FOLKS AND PEOPLE FOR JOBS THAT 01:05:32.528 --> 01:05:37.033 DON'T EXIST IS NOT ONLY UNFAIR, 01:05:37.099 --> 01:05:39.568 IT'S JUST WRONG. WE HAVE TO 01:05:39.635 --> 01:05:40.936 PROVIDE TRAINING TO FOLKS TO 01:05:41.003 --> 01:05:42.471 EXPAND THE DIVERSITY OF OUR 01:05:42.538 --> 01:05:43.773 INDUSTRY. AND THE ONLY WAY WE 01:05:43.839 --> 01:05:45.741 CAN DO THAT IS IF THOSE FOLKS 01:05:45.808 --> 01:05:46.776 WE TRAIN HAVE OPPORTUNITIES TO 01:05:46.842 --> 01:05:50.379 WORK IN THIS INDUSTRY. IN 2025, 01:05:50.446 --> 01:05:51.781 THE ENTERTAINMENT UNION 01:05:51.847 --> 01:05:53.249 COALITION USED THE SLOGAN THAT 01:05:53.316 --> 01:05:54.617 IF OUR INDUSTRY THRIVES, 01:05:54.684 --> 01:05:56.385 CALIFORNIA THRIVES. AND THAT'S 01:05:56.452 --> 01:05:58.587 TRUE. BUT THE REVERSE IS 01:05:58.654 --> 01:06:01.891 EQUALLY TRUE. SO EVEN WITH MY 01:06:01.957 --> 01:06:03.292 PREPARED REMARKS, I KNOW I WENT 01:06:03.359 --> 01:06:05.594 OVER MY TIME. I LOOK FORWARD, 01:06:05.661 --> 01:06:06.896 AND OUR ORGANIZATION LOOKS 01:06:06.962 --> 01:06:07.830 FORWARD TO WORKING WITH EACH 01:06:07.897 --> 01:06:09.665 AND EVERY ONE OF YOU. CHAIR, 01:06:09.732 --> 01:06:10.700 AGAIN, THANK YOU FOR YOUR 01:06:10.766 --> 01:06:14.070 STAUNCH SUPPORT OF OUR INDUSTRY. 01:06:14.136 --> 01:06:15.938 WE WILL CREATE A PROGRAM THAT 01:06:16.005 --> 01:06:18.774 IS COMPETITIVE AND STOPS THE 01:06:18.841 --> 01:06:19.809 OUTFLOW OF THESE IMPORTANT 01:06:19.875 --> 01:06:22.044 MIDDLE CLASS JOBS. AND THAT'S A 01:06:22.111 --> 01:06:24.146 PROGRAM THAT INCLUDES ALL 01:06:24.213 --> 01:06:25.581 APPROPRIATE EXPENSES AND 01:06:25.648 --> 01:06:27.416 REMOVES THE CAP AND CONTINUES 01:06:27.483 --> 01:06:29.552 TO HOLD CALIFORNIA AND OUR 01:06:29.618 --> 01:06:30.853 WORKFORCE BACK. THANK YOU FOR 01:06:30.920 --> 01:06:32.088 YOUR LEADERSHIP. THANK YOU FOR 01:06:32.154 --> 01:06:33.823 YOUR TIME, AND I APPRECIATE THE 01:06:33.889 --> 01:06:34.790 OPPORTUNITY TO ADDRESS THE 01:06:34.857 --> 01:06:35.891 COMMITTEE TODAY. THANK YOU, MR. 01:06:35.958 --> 01:06:37.126 MAYOR. I REALLY, REALLY 01:06:37.193 --> 01:06:38.928 APPRECIATE THAT. THANK YOU. 01:06:38.994 --> 01:06:40.129 WE'RE GOING TO GO AHEAD AND GO 01:06:40.196 --> 01:06:41.897 THROUGH ALL THE PANELISTS FIRST, 01:06:41.964 --> 01:06:42.932 AND THEN WE'LL HAVE 01:06:42.998 --> 01:06:43.999 OPPORTUNITIES FOR THE THE 01:06:44.066 --> 01:06:45.835 MEMBERS OF THE COMMITTEE TO ASK 01:06:45.901 --> 01:06:47.103 QUESTIONS AT THE END. SO I'D 01:06:47.169 --> 01:06:49.038 LIKE TO RECOGNIZE NEXT. GINA 01:06:49.105 --> 01:06:51.307 RODRIGUEZ. HI. HI, EVERYONE. 01:06:51.374 --> 01:06:53.008 GOOD MORNING. THANK YOU. CHAIRS 01:06:53.075 --> 01:06:54.043 AND THE MEMBERS OF THE 01:06:54.110 --> 01:06:54.877 COMMITTEE FOR HAVING ME TODAY. 01:06:54.944 --> 01:06:57.012 AND THANK YOU, MR. CHAIR, FOR 01:06:57.079 --> 01:06:58.013 YOUR LEADERSHIP ON THE 01:06:58.080 --> 01:06:59.782 CALIFORNIA FILM AND TELEVISION 01:06:59.849 --> 01:07:02.351 JOBS ACT. YOU KNOW, I HAVE A 01:07:02.418 --> 01:07:05.121 SCRIPT ALSO BECAUSE I TOO WILL 01:07:05.187 --> 01:07:07.056 GO OVER TIME AND. BUT YOU 01:07:07.123 --> 01:07:09.158 ROCKED THAT, MICHAEL. I DIDN'T 01:07:09.225 --> 01:07:13.262 REALIZE HOW WHAT THE MAGNITUDE 01:07:13.329 --> 01:07:16.031 OF THIS PANEL TILL NOW, WHICH 01:07:16.098 --> 01:07:17.767 HAS SHOOK ME A LITTLE BIT, TO 01:07:17.833 --> 01:07:20.069 BE HONEST WITH YOU. I GREW UP 01:07:20.136 --> 01:07:21.270 IN A HOUSEHOLD WHERE MY FATHER 01:07:21.337 --> 01:07:23.939 WAS A TEAMSTER LOCAL 714 IN 01:07:24.006 --> 01:07:26.075 CHICAGO, AND I WOULD GO WITH 01:07:26.142 --> 01:07:28.611 HIM TO PICKET LINES. HE 01:07:28.677 --> 01:07:30.379 REPRESENTED UNION WORKERS IN 01:07:30.446 --> 01:07:33.315 THE FACTORY, AND I WATCHED MY 01:07:33.382 --> 01:07:35.851 FATHER FIGHT FOR PEOPLE'S JOBS. 01:07:35.918 --> 01:07:37.553 AND HE WAS MY HERO. AND HE WAS 01:07:37.620 --> 01:07:43.759 LIKE, AWESOME TO ME. AND. MY 01:07:43.826 --> 01:07:44.927 DAD WOULD BE REALLY PROUD RIGHT 01:07:44.994 --> 01:07:46.629 NOW. THAT'S SO FUNNY. IT'S SO 01:07:46.695 --> 01:07:50.566 STRANGE. I, I GUESS I'M, I'M 01:07:50.633 --> 01:07:53.135 NOT HERE AS A, A SOMEBODY WHO 01:07:53.202 --> 01:07:57.072 RUNS A UNION. I'M HERE AS A 01:07:57.139 --> 01:08:01.010 PERSON THAT IS AFFECTED BY THIS. 01:08:01.076 --> 01:08:02.878 AND I, WHEN I WAS SHOOTING MY 01:08:02.945 --> 01:08:04.079 MOVIE. SO HI, I'M GINA 01:08:04.146 --> 01:08:05.748 RODRIGUEZ, I'M A DIRECTOR 01:08:05.815 --> 01:08:07.116 PRODUCER. I JUST WRAPPED MY 01:08:07.183 --> 01:08:08.951 FIRST FEATURE, MY DIRECTORIAL 01:08:09.018 --> 01:08:11.787 DEBUT, HOUSE OF GUERRERO. YES. 01:08:11.854 --> 01:08:13.989 VERY EXCITING. A BOXING DRAMA 01:08:14.056 --> 01:08:17.293 ABOUT MY FAMILY. AND IT WAS SET 01:08:17.359 --> 01:08:19.028 IN EL CENTRO HERE IN THE 01:08:19.094 --> 01:08:22.998 IMPERIAL VALLEY. AND CALIFORNIA 01:08:23.065 --> 01:08:25.201 WAS INTEGRAL TO THIS STORY, AND 01:08:25.267 --> 01:08:26.869 WE WERE ABLE TO SHOOT IT HERE 01:08:26.936 --> 01:08:28.037 BECAUSE OF THE TAX CREDIT. SO 01:08:28.103 --> 01:08:30.539 THANK YOU SO MUCH. AND WE WERE 01:08:30.606 --> 01:08:32.308 AWARDED NEARLY 4.5 MILLION 01:08:32.374 --> 01:08:34.176 THROUGH THE CALIFORNIA FILM AND 01:08:34.243 --> 01:08:35.578 TELEVISION TAX CREDIT PROGRAM, 01:08:35.644 --> 01:08:38.080 AS ONE OF 28 FILMS THAT WERE 01:08:38.147 --> 01:08:41.650 SELECTED LAST DECEMBER. AND, 01:08:41.717 --> 01:08:45.354 YOU KNOW, I, I THINK WHEN I WAS 01:08:45.421 --> 01:08:47.022 ON THE MOVIE SET, MY FATHER, 01:08:47.089 --> 01:08:48.924 THE FIRST DAY, HE SAID, GINA, 01:08:48.991 --> 01:08:50.059 LOOK AROUND, LOOK AT HOW MANY 01:08:50.125 --> 01:08:54.029 PEOPLE YOU EMPLOYED. AND I WAS 01:08:54.096 --> 01:08:55.197 TOO WRAPPED UP IN LIKE, YOU 01:08:55.264 --> 01:08:56.465 KNOW, BREASTFEEDING MY CHILD 01:08:56.532 --> 01:08:58.267 AND DOING MY FIRST FILM AND 01:08:58.334 --> 01:09:00.402 RUNNING A SET OF 150 CREW TO 01:09:00.469 --> 01:09:01.937 STOP AND REALLY UNDERSTAND WHAT 01:09:02.004 --> 01:09:04.707 THAT MEANT UNTIL LIKE RIGHT NOW, 01:09:04.773 --> 01:09:09.745 QUITE LITERALLY. BECAUSE I 01:09:09.812 --> 01:09:11.947 HEARD STORIES ON SET NOW, I 01:09:12.014 --> 01:09:12.915 DEFINITELY CAN'T EVEN GO 01:09:12.982 --> 01:09:15.150 THROUGH THIS THROUGH THIS 01:09:15.217 --> 01:09:16.318 SCRIPT, BUT I HEARD STORIES ON 01:09:16.385 --> 01:09:19.355 SET THAT WERE THAT SHOOK ME IN 01:09:19.421 --> 01:09:20.589 A WAY THAT WERE SO DIFFERENT 01:09:20.656 --> 01:09:23.058 THAN WHAT I FELT 15 YEARS AGO, 01:09:23.125 --> 01:09:25.661 BEFORE I WAS A MOTHER, BEFORE I 01:09:25.728 --> 01:09:27.329 WAS A MOTHER. IT WAS SO 01:09:27.396 --> 01:09:28.864 EXCITING TO GO TO NEW YORK TO 01:09:28.931 --> 01:09:31.000 SHOOT A MOVIE, OR ATLANTA OR 01:09:31.066 --> 01:09:34.036 TORONTO OR, YOU KNOW, LONDON. 01:09:34.103 --> 01:09:36.005 THAT WAS LIKE SUCH A THRILLING 01:09:36.071 --> 01:09:38.240 EXPERIENCE WHEN IT WAS JUST ME. 01:09:38.307 --> 01:09:41.410 AND THEN I MY MOTHER GOT GBS 01:09:41.477 --> 01:09:43.612 THREE YEARS AGO, AND SHE 01:09:43.679 --> 01:09:45.781 DROPPED DOWN PARALYZED, AND SHE 01:09:45.848 --> 01:09:47.883 LIVED WITH ME, AND I HAD TO 01:09:47.950 --> 01:09:49.852 TAKE CARE OF HER. AND I HAD TO 01:09:49.919 --> 01:09:51.220 TAKE CARE OF MYSELF. AND I HAD 01:09:51.287 --> 01:09:53.022 TO TAKE CARE OF MY CHILDREN. 01:09:53.088 --> 01:09:54.890 AND I HAD TO TAKE CARE OF MY 01:09:54.957 --> 01:09:55.991 HOUSEHOLD, WHICH MEANS I HAD TO 01:09:56.058 --> 01:09:58.027 WORK, BUT I HAD TO STAY. I HAD 01:09:58.093 --> 01:09:59.895 TO STAY HERE IN CALIFORNIA, OR 01:09:59.962 --> 01:10:01.830 ELSE WHO WOULD TAKE CARE OF MY 01:10:01.897 --> 01:10:02.998 MOTHER 24 OVER SEVEN AND HELP 01:10:03.065 --> 01:10:04.833 HER WALK TO THE BATHROOM AND 01:10:04.900 --> 01:10:06.068 HELP HER EAT EVERY DAY. AND WHO 01:10:06.135 --> 01:10:07.937 WAS GOING TO TAKE CARE OF MY 01:10:08.003 --> 01:10:10.673 KIDS IF MOM WAS GONE? AND SO 01:10:10.739 --> 01:10:13.108 WORKING IN CALIFORNIA WAS 01:10:13.175 --> 01:10:16.011 IMPERATIVE AND EVERYTHING 01:10:16.078 --> 01:10:18.547 CHANGED. NO LONGER WAS IT ABOUT 01:10:18.614 --> 01:10:19.648 THIS THRILLING EXPERIENCE OF 01:10:19.715 --> 01:10:21.283 BEING AN ACTOR, BUT THIS PERSON 01:10:21.350 --> 01:10:23.586 THAT HAD RESPONSIBILITIES AND 01:10:23.652 --> 01:10:25.321 HAD CREATED A FAMILY IN THIS 01:10:25.387 --> 01:10:28.023 BEAUTIFUL STATE AND HAD WANTED 01:10:28.090 --> 01:10:29.558 TO CONTINUE TO MAKE THE ART 01:10:29.625 --> 01:10:31.894 THAT BROUGHT ME JOY AND TOOK 01:10:31.961 --> 01:10:33.929 CARE OF MY FAMILY AND GOT US 01:10:33.996 --> 01:10:35.898 HEALTH INSURANCE AND COVERED 01:10:35.965 --> 01:10:37.600 THE CAREGIVING THAT MY MOTHER 01:10:37.666 --> 01:10:40.869 NEEDED. BUT I COULDN'T LEAVE. 01:10:40.936 --> 01:10:44.773 AND I DIDN'T REALIZE HOW SCARY 01:10:44.840 --> 01:10:47.009 IT WAS GOING TO BE FOR ME TO BE 01:10:47.076 --> 01:10:48.344 LIMITED IN THE OPPORTUNITIES 01:10:48.410 --> 01:10:50.646 THAT EXIST, EXISTED HERE IN THE 01:10:50.713 --> 01:10:55.217 IN THE FORM OF WORK THAT I DO. 01:10:55.284 --> 01:10:56.652 AND AT THAT MOMENT, IT WAS ALL 01:10:56.719 --> 01:10:59.588 ABOUT ME AND MY FAMILY. AND 01:10:59.655 --> 01:11:01.724 THERE I WAS ON THIS SET A FEW 01:11:01.790 --> 01:11:03.559 YEARS LATER, AND IT WAS ALL 01:11:03.626 --> 01:11:05.327 ABOUT THE PEOPLE THAT WERE 01:11:05.394 --> 01:11:07.863 MAKING MY ART POSSIBLE, AND THE 01:11:07.930 --> 01:11:09.632 FAMILIES THEY HAD TO GO HOME TO, 01:11:09.698 --> 01:11:10.733 AND THE FAMILIES THEY HAD TO 01:11:10.799 --> 01:11:12.635 TAKE CARE OF, AND THE ELDERLY 01:11:12.701 --> 01:11:13.736 THAT THEY WERE CAREGIVING FOR, 01:11:13.802 --> 01:11:15.504 AND THE CHILDREN THAT THEY WERE 01:11:15.571 --> 01:11:17.239 ABLE TO GO HOME TO EVERY NIGHT, 01:11:17.306 --> 01:11:19.341 OR THE PETS OR THEIR BED OR 01:11:19.408 --> 01:11:21.543 THEIR JUST FAMILIAR SPACE. AND 01:11:21.610 --> 01:11:23.212 THEY GOT TO DO IT BECAUSE OF 01:11:23.278 --> 01:11:24.313 THIS TAX INCENTIVE. AND THEY 01:11:24.380 --> 01:11:26.248 GOT TO DO IT BECAUSE WE WERE 01:11:26.315 --> 01:11:30.152 ABLE TO MAKE A MOVIE HERE. AND 01:11:30.219 --> 01:11:32.287 IT'S JUST SHAKING ME RIGHT NOW 01:11:32.354 --> 01:11:34.156 BECAUSE I KNEW IT ALL FELT LIKE 01:11:34.223 --> 01:11:35.958 SOMETHING UNTIL I SAT HERE AND 01:11:36.025 --> 01:11:38.093 LISTENED TO ALL OF YOU AND THEN 01:11:38.160 --> 01:11:39.528 LISTENED TO MIKE AND HIS 01:11:39.595 --> 01:11:42.765 AWESOME STATISTICS AND SCARY 01:11:42.831 --> 01:11:45.768 STATISTICS. BUT NOW I, I LOOK 01:11:45.834 --> 01:11:47.703 AT MY SCRIPT AND ALL THE THINGS 01:11:47.770 --> 01:11:48.971 THAT I THOUGHT ABOUT, WHICH WAS, 01:11:49.038 --> 01:11:51.040 YES, WE SHOT 26 DAYS. WE 01:11:51.106 --> 01:11:53.275 EMPLOYED MORE THAN 150 CAST AND 01:11:53.342 --> 01:11:55.711 CREW MEMBERS. WE DID OVER 400 01:11:55.778 --> 01:11:57.513 BACKGROUND PERFORMERS. THESE 01:11:57.579 --> 01:12:00.416 ARE PEOPLE THAT ARE GETTING A 01:12:00.482 --> 01:12:01.183 PAYCHECK. THESE ARE PEOPLE THAT 01:12:01.250 --> 01:12:03.719 ARE ABLE TO PAY FOR THEIR BILLS 01:12:03.786 --> 01:12:05.054 AND CONTRIBUTE TO THEIR HEALTH 01:12:05.120 --> 01:12:07.256 CARE AND HELP THE PEOPLE AROUND 01:12:07.322 --> 01:12:08.424 THEM. AND EVERY ONE OF THOSE 01:12:08.490 --> 01:12:09.758 PEOPLE TOOK HOME A PAYCHECK. 01:12:09.825 --> 01:12:11.260 AND OUR PRODUCTION ALSO SPENT 01:12:11.326 --> 01:12:12.294 MONEY WITH THE EQUIPMENT, 01:12:12.361 --> 01:12:13.429 HOUSES AND THE CATERERS AND THE 01:12:13.495 --> 01:12:14.797 LOCAL BUSINESSES AND THE FOOD 01:12:14.863 --> 01:12:17.332 TRUCKS THAT WE ORDERED EVERY 01:12:17.399 --> 01:12:20.235 WEEK TO BE SPECIAL FOR OUR CREW 01:12:20.302 --> 01:12:21.336 AND HOW IMPORTANT IT WAS TO 01:12:21.403 --> 01:12:24.840 THOSE SMALL BUSINESSES. AND IT 01:12:24.907 --> 01:12:27.810 JUST CONTINUES TO SPIRAL INTO 01:12:27.876 --> 01:12:28.911 SOMETHING MAGICAL, LIKE THE 01:12:28.977 --> 01:12:30.612 FACT THAT OUR MAJORITY OF OUR 01:12:30.679 --> 01:12:31.747 CAST WAS LATINO, AND A LARGE 01:12:31.814 --> 01:12:33.549 MAJORITY OF OUR CREW IDENTIFIED 01:12:33.615 --> 01:12:34.683 AS LATINO, AND MOST OF THEM 01:12:34.750 --> 01:12:36.051 WERE CALIFORNIA NATIVES OR 01:12:36.118 --> 01:12:37.486 LONGTIME CALIFORNIA INDUSTRY 01:12:37.553 --> 01:12:38.253 PROFESSIONALS. AND THEY TOLD ME 01:12:38.320 --> 01:12:39.922 AGAIN AND AGAIN HOW MUCH THEY 01:12:39.988 --> 01:12:41.890 LOVED THAT WE WERE ABLE TO WORK 01:12:41.957 --> 01:12:43.726 HERE IN THEIR HOME STATE. AND, 01:12:43.792 --> 01:12:45.060 YOU KNOW, FILMING DEMANDS LONG 01:12:45.127 --> 01:12:46.261 AND GRUELING HOURS. BUT OUR 01:12:46.328 --> 01:12:47.563 CREW SAID MANY TIMES WHAT A 01:12:47.629 --> 01:12:49.331 BLESSING IT WAS TO GO HOME AT 01:12:49.398 --> 01:12:51.300 THE END OF THE DAY TO THEIR 01:12:51.366 --> 01:12:52.334 FAMILIES AND THEIR KIDS AND 01:12:52.401 --> 01:12:54.203 THEIR PETS AND THEIR LOVED ONES 01:12:54.269 --> 01:12:55.337 AND THEIR BEDS. AND, YOU KNOW, 01:12:55.404 --> 01:12:57.172 THAT DOES INCLUDE ME AND BEING 01:12:57.239 --> 01:12:59.842 ABLE TO GO HOME TO MY CHILDREN. 01:12:59.908 --> 01:13:01.944 AND, YOU KNOW, LATINOS MAKE UP 01:13:02.010 --> 01:13:03.512 NEARLY 40% OF CALIFORNIANS, YET 01:13:03.579 --> 01:13:05.547 WE REMAIN UNREPRESENTED IN THE 01:13:05.614 --> 01:13:06.648 INDUSTRY AND ON SCREEN. BUT 01:13:06.715 --> 01:13:08.817 WHEN PRODUCTIONS STAY HERE, OUR 01:13:08.884 --> 01:13:11.019 COMMUNITIES GET THESE JOBS. AND 01:13:11.086 --> 01:13:12.387 THAT IS WHAT I'VE BEEN PRAYING 01:13:12.454 --> 01:13:14.623 FOR SINCE I GOT INTO THIS 01:13:14.690 --> 01:13:16.725 INDUSTRY, WAS TO HELP MY 01:13:16.792 --> 01:13:18.894 COMMUNITY AND THE COMMUNITY AT 01:13:18.961 --> 01:13:20.295 LARGE, AND I'M ABLE TO DO THEM 01:13:20.362 --> 01:13:22.498 BOTH BECAUSE OF YOUR INCREDIBLE 01:13:22.564 --> 01:13:24.600 WORK, AND I'M ABLE TO MAKE ART 01:13:24.666 --> 01:13:26.502 HERE BECAUSE OF THIS INCREDIBLE 01:13:26.568 --> 01:13:28.604 WORK THAT YOU'RE DOING. AND IT 01:13:28.670 --> 01:13:31.073 MATTERS TO US. AND I REALIZE 01:13:31.140 --> 01:13:32.307 I'M JUST LIKE, I'M JUST IN US. 01:13:32.374 --> 01:13:35.410 I'M JUST ONE OF THEM THAT THAT 01:13:35.477 --> 01:13:37.279 BENEFITS FROM YOUR HARD WORK. 01:13:37.346 --> 01:13:39.414 BUT I AM A REAL STORY AND I 01:13:39.481 --> 01:13:41.583 REALIZE THAT I AM A PRIVILEGED 01:13:41.650 --> 01:13:43.385 STORY. THERE ARE SO MANY MORE 01:13:43.452 --> 01:13:45.621 THAT ARE, I MEAN, FAR MORE THAT 01:13:45.687 --> 01:13:46.789 AREN'T IN THE POSITION THAT 01:13:46.855 --> 01:13:48.791 I'VE BEEN BLESSED TO HAVE THAT 01:13:48.857 --> 01:13:50.559 NEED, OUR SUPPORT AND NEED AND 01:13:50.626 --> 01:13:54.496 NEED THE JOBS. SO THE 2025 01:13:54.563 --> 01:13:56.365 EXPANSION IS WORKING. YOU KNOW, 01:13:56.431 --> 01:13:58.500 OUR NEARLY 4.5 MILLION CREDIT 01:13:58.567 --> 01:14:01.036 BROUGHT ABOUT 12.7 MILLION IN 01:14:01.103 --> 01:14:02.471 SPENDING INTO CALIFORNIA. MY 01:14:02.538 --> 01:14:04.273 FILM IS JUST ONE OF 170 01:14:04.339 --> 01:14:05.707 PROJECTS, THE EXPANDED PROGRAM 01:14:05.774 --> 01:14:06.875 SUPPORTED IN THE FIRST YEAR. 01:14:06.942 --> 01:14:08.977 AND EVERY ONE OF THEM HAS A 01:14:09.044 --> 01:14:12.181 STORY LIKE OURS. AND I 01:14:12.247 --> 01:14:13.182 RESPECTFULLY URGE YOU TO 01:14:13.248 --> 01:14:14.283 PROTECT THIS PROGRAM AND KEEP 01:14:14.349 --> 01:14:15.417 IT STRONG, TO CONTINUE TO 01:14:15.484 --> 01:14:17.586 SUPPORT INDEPENDENT PRODUCTIONS 01:14:17.653 --> 01:14:19.021 AND TO KEEP PRODUCTION IN LOS 01:14:19.087 --> 01:14:21.223 ANGELES AND ACROSS CALIFORNIA 01:14:21.290 --> 01:14:22.624 AND EVERY CALIFORNIA. EVERY 01:14:22.691 --> 01:14:23.592 PRODUCTION THAT STAYS IN 01:14:23.659 --> 01:14:25.527 CALIFORNIA MEANS REAL JOBS FOR 01:14:25.594 --> 01:14:27.196 REAL FAMILIES. AND MY FATHER 01:14:27.262 --> 01:14:29.431 WOULD BE SO PROUD. AND I'M 01:14:29.498 --> 01:14:30.866 POSTPARTUM, SO THAT'S WHY I'M 01:14:30.933 --> 01:14:34.536 CRYING. BUT BUT MORE SO BECAUSE 01:14:34.603 --> 01:14:40.609 THAT'S WHAT HE USED TO DO. YEAH. 01:14:40.676 --> 01:14:41.877 SO IT'S COOL. WE SHOULD DO THIS 01:14:41.944 --> 01:14:44.680 FOR EVERYBODY HERE. I DIDN'T 01:14:44.746 --> 01:14:46.415 KNOW IT WAS GOING TO GO IN THIS 01:14:46.481 --> 01:14:47.516 DIRECTION. SO SOME SAY THAT 01:14:47.583 --> 01:14:49.284 HOLLYWOOD IS DYING. AND I 01:14:49.351 --> 01:14:50.352 RESPECTFULLY DISAGREE. 01:14:50.419 --> 01:14:51.520 HOLLYWOOD ISN'T JUST A PLACE ON 01:14:51.587 --> 01:14:53.322 THE MAP. IT'S THE CREWS, THE 01:14:53.388 --> 01:14:54.423 ARTISTS, THE FAMILIES WHO MAKE 01:14:54.489 --> 01:14:55.791 THIS WORK. AND AS LONG AS 01:14:55.858 --> 01:14:56.892 CALIFORNIA KEEPS INVESTING IN 01:14:56.959 --> 01:15:00.796 US, HOLLYWOOD WILL NEVER DIE. 01:15:00.863 --> 01:15:03.332 OKAY, I'M DONE CRYING. I'M DONE 01:15:03.398 --> 01:15:07.970 TALKING. THANK YOU, THANK YOU. 01:15:08.036 --> 01:15:09.638 GINA AND I HAD THE OPPORTUNITY 01:15:09.705 --> 01:15:10.839 BEING OUT ON YOUR SET, AND I 01:15:10.906 --> 01:15:12.741 SAW ALL OF THOSE WORKERS. AND, 01:15:12.808 --> 01:15:13.909 YOU KNOW, THANK YOU FOR HAVING 01:15:13.976 --> 01:15:15.811 MANY OF US OUT ON YOUR SET 01:15:15.878 --> 01:15:17.646 WHILE YOU WERE FILMING HERE IN 01:15:17.713 --> 01:15:19.514 LOS ANGELES. SO YES. YEAH. NEXT, 01:15:19.581 --> 01:15:20.616 I'D LIKE TO INTRODUCE LINDSEY 01:15:20.682 --> 01:15:23.151 DOHERTY, WHO AS THE RECORDING 01:15:23.218 --> 01:15:24.319 SECRETARY, BUSINESS AGENT AND 01:15:24.386 --> 01:15:26.722 LEAD ORGANIZER AT LOCAL 399 AND 01:15:26.788 --> 01:15:28.156 ALSO THE AT LARGE VICE 01:15:28.223 --> 01:15:29.258 PRESIDENT AND DIRECTOR OF THE 01:15:29.324 --> 01:15:30.659 MOTION PICTURE DIVISION OF THE 01:15:30.726 --> 01:15:32.394 TEAMSTERS. THANK YOU. AND THANK 01:15:32.461 --> 01:15:33.562 YOU FOR KEEPING IT REAL, 01:15:33.629 --> 01:15:35.030 BECAUSE YOU ARE A 01:15:35.097 --> 01:15:35.731 REPRESENTATION OF WHY WE'RE 01:15:35.797 --> 01:15:37.432 HERE. ON BEHALF OF ALL OF OUR 01:15:37.499 --> 01:15:39.034 MEMBERS AND INDUSTRY WORKERS. 01:15:39.101 --> 01:15:40.168 GOOD MORNING, AND THANK YOU FOR 01:15:40.235 --> 01:15:41.503 THE OPPORTUNITY TO SPEAK. I 01:15:41.570 --> 01:15:43.138 WILL KEEP TO MY FIVE MINUTES 01:15:43.205 --> 01:15:45.140 AND I WILL NOT HAVE ANY F BOMBS, 01:15:45.207 --> 01:15:47.009 BUT IF I DON'T DO IT, IT'S 01:15:47.075 --> 01:15:48.210 GOING TO BE JASON. NOW MY NAME 01:15:48.277 --> 01:15:50.045 IS LINDSEY DOHERTY. AS RICK 01:15:50.112 --> 01:15:51.013 ZUBIATE ALREADY MENTIONED, I'M 01:15:51.079 --> 01:15:52.014 THE PRINCIPAL OFFICER OF 01:15:52.080 --> 01:15:53.081 TEAMSTERS LOCAL 399 HERE IN 01:15:53.148 --> 01:15:54.816 NORTH HOLLYWOOD, ALSO 01:15:54.883 --> 01:15:55.584 INTERNATIONAL VICE PRESIDENT AT 01:15:55.651 --> 01:15:56.985 LARGE FOR THE INTERNATIONAL 01:15:57.052 --> 01:15:57.619 BROTHERHOOD OF TEAMSTERS AND 01:15:57.686 --> 01:15:58.720 THE DIRECTOR OF THE MOTION 01:15:58.787 --> 01:15:59.821 PICTURE AND THEATRICAL TRADE 01:15:59.888 --> 01:16:01.623 DIVISION FOR THE TEAMSTERS, 01:16:01.690 --> 01:16:02.724 REPRESENTING ALL TEAMSTER 01:16:02.791 --> 01:16:04.860 MEMBERS THROUGHOUT THIS COUNTRY. 01:16:04.927 --> 01:16:06.695 FOR THE PAST SEVERAL YEARS, THE 01:16:06.762 --> 01:16:07.763 TEAMSTERS, ALONGSIDE OTHER 01:16:07.829 --> 01:16:09.131 ENTERTAINMENT UNIONS AND GUILDS, 01:16:09.197 --> 01:16:10.265 HAVE WORKED ALONGSIDE THE 01:16:10.332 --> 01:16:12.067 MOTION PICTURE ASSOCIATION, 01:16:12.134 --> 01:16:13.302 HOLLYWOOD SPECIAL AMBASSADOR 01:16:13.368 --> 01:16:14.970 JON VOIGHT AND HIS TEAM, AS 01:16:15.037 --> 01:16:16.672 WELL AS INDEPENDENT PRODUCERS, 01:16:16.738 --> 01:16:18.907 FILM COMMISSIONERS, VENDORS AND 01:16:18.974 --> 01:16:20.008 INDUSTRY STAKEHOLDERS TO 01:16:20.075 --> 01:16:22.144 ADVANCE A FEDERAL FILM AND 01:16:22.210 --> 01:16:23.979 TELEVISION PRODUCTION TAX 01:16:24.046 --> 01:16:25.547 INCENTIVE. OUR SHARED GOAL IS 01:16:25.614 --> 01:16:27.182 TO BRING PRODUCTION BACK TO THE 01:16:27.249 --> 01:16:29.017 UNITED STATES, PROTECT AMERICAN 01:16:29.084 --> 01:16:31.153 JOBS, AND ENSURE OUR INDUSTRY 01:16:31.219 --> 01:16:32.955 CAN COMPETE IN AN INCREASINGLY 01:16:33.021 --> 01:16:35.123 GLOBAL MARKETPLACE. I WANT TO 01:16:35.190 --> 01:16:36.858 BEGIN BY RECOGNIZING THE 01:16:36.925 --> 01:16:38.360 CALIFORNIA LEGISLATURE FOR THE 01:16:38.427 --> 01:16:40.495 STEPS IT HAS ALREADY TAKEN TO 01:16:40.562 --> 01:16:41.530 STRENGTHEN CALIFORNIA'S FILM 01:16:41.596 --> 01:16:43.365 AND TELEVISION TAX INCENTIVE 01:16:43.432 --> 01:16:45.200 PROGRAM. WE APPRECIATE THAT 01:16:45.267 --> 01:16:46.802 INVESTMENT AND THE RECOGNITION 01:16:46.868 --> 01:16:48.437 THAT PRODUCTION IS ESSENTIAL TO 01:16:48.503 --> 01:16:50.205 CALIFORNIA'S ECONOMY AND 01:16:50.272 --> 01:16:52.074 WORKFORCE. TODAY'S CONVERSATION 01:16:52.140 --> 01:16:53.875 IS NOT ABOUT OVERLOOKING THAT 01:16:53.942 --> 01:16:55.210 PROGRESS. IT IS ABOUT BUILDING 01:16:55.277 --> 01:16:57.412 ON IT AND ENSURING CALIFORNIA 01:16:57.479 --> 01:16:59.214 REMAINS COMPETITIVE AS THE 01:16:59.281 --> 01:17:01.049 INDUSTRY CONTINUES TO CHANGE. 01:17:01.116 --> 01:17:03.618 AND YOU MAY HAVE ALL HEARD ON 01:17:03.685 --> 01:17:05.354 SEPTEMBER 24TH, THIS LAST MONTH, 01:17:05.420 --> 01:17:07.189 BIPARTISAN LEGISLATURE 01:17:07.255 --> 01:17:08.623 LEGISLATION KNOWN AS THE MOTION 01:17:08.690 --> 01:17:09.658 PICTURE TELEVISION AND 01:17:09.725 --> 01:17:11.827 ENTERTAINMENT REVITALIZATION 01:17:11.893 --> 01:17:13.295 ACT WAS INTRODUCED INTO 01:17:13.362 --> 01:17:15.430 CONGRESS. AS PROPOSED, IT WOULD 01:17:15.497 --> 01:17:17.599 ESTABLISH A 20% FEDERAL TAX 01:17:17.666 --> 01:17:19.034 CREDIT FOR QUALIFYING 01:17:19.101 --> 01:17:20.502 PRODUCTION EXPENDITURES AND 01:17:20.569 --> 01:17:21.903 COMPENSATIONS WITH REQUIREMENTS 01:17:21.970 --> 01:17:23.739 FOR DOMESTIC FILMING. THE 01:17:23.805 --> 01:17:24.806 FEDERAL CREDIT COULD BE 01:17:24.873 --> 01:17:26.575 COMBINED WITH THE EXISTING 01:17:26.641 --> 01:17:28.043 STATE INCENTIVES. SO IT'S 01:17:28.110 --> 01:17:29.478 STACKABLE ON OUR CALIFORNIA 01:17:29.544 --> 01:17:32.047 STATE PROGRAM HERE, AN INDUSTRY 01:17:32.114 --> 01:17:33.749 COMMISSION ECONOMIC ANALYSIS 01:17:33.815 --> 01:17:35.217 PROJECT PROJECTS THAT A FEDERAL 01:17:35.283 --> 01:17:37.052 INCENTIVE COULD GENERATE 01:17:37.119 --> 01:17:38.620 SUBSTANTIAL ECONOMIC ACTIVITY 01:17:38.687 --> 01:17:40.288 AND SUPPORT ADDITIONAL AMERICAN 01:17:40.355 --> 01:17:41.790 JOBS. IT'S PROJECTED THAT OVER 01:17:41.857 --> 01:17:44.226 A NINE YEAR PERIOD, THE MOTION 01:17:44.292 --> 01:17:45.660 PICTURE TELEVISION AND 01:17:45.727 --> 01:17:47.029 ENTERTAINMENT REVITALIZATION 01:17:47.095 --> 01:17:52.534 ACT, IT'S A MOUTHFUL, WOULD ADD 01:17:52.601 --> 01:17:53.969 $249.1 BILLION IN TOTAL 01:17:54.036 --> 01:17:58.173 ECONOMIC ACTIVITY, $133 BILLION 01:17:58.240 --> 01:18:02.944 IN WAGES, AND 143,500 AMERICAN 01:18:03.011 --> 01:18:04.446 JOBS. IT'S IMPORTANT TO NOTE 01:18:04.513 --> 01:18:06.281 THAT THIS LEGISLATION HAS NOT 01:18:06.348 --> 01:18:07.783 BEEN PASSED INTO LAW, AND WE 01:18:07.849 --> 01:18:09.017 HAVE SOME DIFFICULT CHALLENGES 01:18:09.084 --> 01:18:10.419 AHEAD OF US FOR THE NEXT FEW 01:18:10.485 --> 01:18:12.654 MONTHS TO ACCOMPLISH THIS. IT 01:18:12.721 --> 01:18:14.823 WOULD UNDOUBTEDLY BE HISTORIC 01:18:14.890 --> 01:18:17.325 FOR OUR INDUSTRY AND FOR OUR 01:18:17.392 --> 01:18:20.195 COUNTRY, BUT CALIFORNIA MUST 01:18:20.262 --> 01:18:22.064 UNDERSTAND SOMETHING 01:18:22.130 --> 01:18:23.465 FUNDAMENTAL. BRINGING 01:18:23.532 --> 01:18:24.933 PRODUCTION BACK TO THE UNITED 01:18:25.000 --> 01:18:27.035 STATES IS NOT THE SAME AS 01:18:27.102 --> 01:18:29.638 BRINGING PRODUCTION BACK TO 01:18:29.704 --> 01:18:31.173 CALIFORNIA. A FEDERAL INCENTIVE 01:18:31.239 --> 01:18:32.474 WOULD HELP ADDRESS THE 01:18:32.541 --> 01:18:33.542 COMPETITION BETWEEN THE UNITED 01:18:33.608 --> 01:18:35.377 STATES AND OTHER COUNTRIES. A 01:18:35.444 --> 01:18:37.145 FEDERAL INCENTIVE WOULD NOT 01:18:37.212 --> 01:18:38.947 ELIMINATE COMPETITION BETWEEN 01:18:39.014 --> 01:18:41.116 STATES. IT WOULD NOT REQUIRE A 01:18:41.183 --> 01:18:43.251 STUDIO TO FILM. IN CALIFORNIA, 01:18:43.318 --> 01:18:44.753 PRODUCERS WOULD CONTINUE TO 01:18:44.820 --> 01:18:46.888 COMPARE COSTS AND INCENTIVES IN 01:18:46.955 --> 01:18:48.323 CALIFORNIA, NEW JERSEY, NEW 01:18:48.390 --> 01:18:49.791 YORK, GEORGIA AND OTHER 01:18:49.858 --> 01:18:51.927 COMPETING JURISDICTIONS. IF 01:18:51.993 --> 01:18:53.728 ANOTHER STATE OFFERS A MORE 01:18:53.795 --> 01:18:55.497 ATTRACTIVE OVERALL FINANCIAL 01:18:55.564 --> 01:18:57.065 PACKAGE, THAT STATE MAY CAPTURE 01:18:57.132 --> 01:18:58.733 THE JOBS, THE VENDOR CONTRACTS 01:18:58.800 --> 01:19:00.569 AND ECONOMIC ACTIVITY GENERATED 01:19:00.635 --> 01:19:02.704 BY A FEDERAL INCENTIVE. EVEN IF 01:19:02.771 --> 01:19:04.172 THE PRODUCTIONS, CREATIVE 01:19:04.239 --> 01:19:05.574 LEADERSHIP OR CORPORATE 01:19:05.640 --> 01:19:07.375 HEADQUARTERS ARE BASED HERE IN 01:19:07.442 --> 01:19:08.443 CALIFORNIA, PRODUCTIONS WILL 01:19:08.510 --> 01:19:10.245 STILL COMPARE TOTAL COSTS, 01:19:10.312 --> 01:19:13.181 AVAILABLE INCENTIVES, WORKFORCE 01:19:13.248 --> 01:19:14.549 INFRASTRUCTURE, LOCATIONS, AND 01:19:14.616 --> 01:19:16.751 CERTAINTY OF FUNDING WHEN 01:19:16.818 --> 01:19:18.920 CHOOSING WHERE TO FILM. WE HAVE 01:19:18.987 --> 01:19:20.021 ALREADY SEEN THIS TO BE THE 01:19:20.088 --> 01:19:22.757 CASE WITHOUT AN EXISTING 01:19:22.824 --> 01:19:25.660 EXISTING FEDERAL INCENTIVE. NOW 01:19:25.727 --> 01:19:26.695 PROPOSED RECENT STATE OF 01:19:26.761 --> 01:19:27.896 PRODUCTION REPORT, WHICH I KNOW 01:19:27.963 --> 01:19:29.231 SOME OF YOU HAVE HEARD, 01:19:29.297 --> 01:19:31.032 ILLUSTRATES THIS CHALLENGE. 01:19:31.099 --> 01:19:31.700 CALIFORNIA'S COMMITTED 01:19:31.766 --> 01:19:34.269 PRODUCTION SPENDING DECLINED 01:19:34.336 --> 01:19:38.573 15% IN 2025 TO APPROXIMATELY 01:19:38.640 --> 01:19:39.708 5.51 BILLION, WHILE NEW 01:19:39.774 --> 01:19:42.544 JERSEY'S INCREASED 96% THAT 01:19:42.611 --> 01:19:44.146 SAME YEAR. AND MIKE HAS ALREADY 01:19:44.212 --> 01:19:45.447 TOUCHED ON THIS. BUT JUST 01:19:45.514 --> 01:19:46.882 YESTERDAY, DEADLINE HOLLYWOOD 01:19:46.948 --> 01:19:48.350 REPORTED WHAT THE HEADLINE THAT 01:19:48.416 --> 01:19:50.485 SAID NYC PRODUCTION BOOM SEES 01:19:50.552 --> 01:19:52.954 PERMITS AND SPENDING SURGE 01:19:53.021 --> 01:19:55.490 SOUNDSTAGES MAXED OUT. WE ARE 01:19:55.557 --> 01:19:57.692 BURSTING AT THE SEAMS. AND WE 01:19:57.759 --> 01:19:59.461 KNOW THIS IS NOT THE CASE FOR 01:19:59.528 --> 01:20:00.829 CALIFORNIA, AND THIS IS THE 01:20:00.896 --> 01:20:02.297 REALITY THAT WE LIVE IN TODAY. 01:20:02.364 --> 01:20:03.765 EVEN WITHOUT A FEDERAL 01:20:03.832 --> 01:20:04.966 INCENTIVE, IT'S PROJECTED THAT 01:20:05.033 --> 01:20:06.701 NEW YORK WILL SOON SURPASS 01:20:06.768 --> 01:20:08.403 CALIFORNIA AND PRODUCTION SPEND. 01:20:08.470 --> 01:20:10.272 THE REPORT ALSO ESTIMATES THE 01:20:10.338 --> 01:20:11.773 EFFECTIVE INCENTIVE FOR A 01:20:11.840 --> 01:20:12.774 HYPOTHETICAL $100 MILLION 01:20:12.841 --> 01:20:15.310 DOLLAR PROJECT. UNDER ITS MODEL 01:20:15.377 --> 01:20:16.745 ASSUMPTIONS, CALIFORNIA'S 01:20:16.811 --> 01:20:18.914 EFFECTIVE INCENTIVE RATE IS 01:20:18.980 --> 01:20:22.184 APPROXIMATELY 28%, COMPARED 01:20:22.250 --> 01:20:25.353 WITH 30% IN GEORGIA. UNDER NEW 01:20:25.420 --> 01:20:28.290 JERSEY'S PROGRAM, 40% EFFECTIVE 01:20:28.356 --> 01:20:30.125 RATE. THE REPORT FURTHER FOUND 01:20:30.192 --> 01:20:32.961 THAT APPROXIMATELY 70% OF 01:20:33.028 --> 01:20:34.362 SURVEYED STUDIO EXECUTIVES 01:20:34.429 --> 01:20:36.598 PLACE PRODUCTIONS IN THE LOWEST 01:20:36.665 --> 01:20:39.067 COST VIABLE LOCATION. 01:20:39.134 --> 01:20:41.536 CALIFORNIA CANNOT EXPECT ITS 01:20:41.603 --> 01:20:43.371 EXTRAORDINARY WORKFORCE, 01:20:43.438 --> 01:20:44.439 LOCATIONS, INFRASTRUCTURE, AND 01:20:44.506 --> 01:20:46.241 CREATIVE COMMUNITY TO OVERCOME 01:20:46.308 --> 01:20:48.443 EVERY FINANCIAL DISADVANTAGE, 01:20:48.510 --> 01:20:49.878 WE HAVE AN OPPORTUNITY TO 01:20:49.945 --> 01:20:51.346 PROTECT AND REBUILD AN INDUSTRY 01:20:51.413 --> 01:20:52.881 THAT SUPPORTS. THANK YOU, JASON. 01:20:52.948 --> 01:20:55.250 TO SUPPORT SKILLED WORKERS, 01:20:55.317 --> 01:20:57.085 SMALL BUSINESSES, LOCAL 01:20:57.152 --> 01:20:58.486 COMMUNITIES AND ESSENTIAL PART 01:20:58.553 --> 01:21:00.355 OF CALIFORNIA'S ECONOMY, WE 01:21:00.422 --> 01:21:02.123 SHOULD NOT ASSUME THAT THE WORK 01:21:02.190 --> 01:21:03.558 WILL AUTOMATICALLY RETURN 01:21:03.625 --> 01:21:05.360 SIMPLY BECAUSE FEDERAL POLICY 01:21:05.427 --> 01:21:07.529 CHANGES. THAT IS WHY CALIFORNIA 01:21:07.596 --> 01:21:08.964 MUST CONTINUE TO TAKE ACTION AT 01:21:09.030 --> 01:21:10.765 THE STATE LEVEL, AS WELL AS 01:21:10.832 --> 01:21:11.800 CONTINUE TO BUILD UPON THE 01:21:11.866 --> 01:21:13.969 COMPETITIVE NATURE OF OUR STATE 01:21:14.035 --> 01:21:16.137 JOBS PROGRAM. WE SHOULD BE 01:21:16.204 --> 01:21:17.606 PREPARING NOW FOR THE 01:21:17.672 --> 01:21:18.974 POSSIBILITY OF A FEDERAL 01:21:19.040 --> 01:21:20.875 INCENTIVE, NOT WAITING UNTIL IT 01:21:20.942 --> 01:21:21.876 TAKES EFFECT, AND THEN 01:21:21.943 --> 01:21:22.978 DISCOVERING THAT OTHER STATES 01:21:23.044 --> 01:21:24.045 ARE BETTER POSITIONED TO 01:21:24.112 --> 01:21:25.146 CAPTURE THE RESULTING 01:21:25.213 --> 01:21:27.315 PRODUCTION ACTIVITY. CALIFORNIA 01:21:27.382 --> 01:21:29.117 SHOULD STRENGTHEN ITS OWN 01:21:29.184 --> 01:21:31.653 PROGRAM, EVALUATE ITS FUNDING 01:21:31.720 --> 01:21:33.888 CAP AND ELIGIBILITY RULES, AND 01:21:33.955 --> 01:21:35.223 MAKE SURE THE INCENTIVE IS 01:21:35.290 --> 01:21:36.258 STRUCTURED TO ATTRACT PROJECTS 01:21:36.324 --> 01:21:38.159 THAT CREATE REAL WORK FOR 01:21:38.226 --> 01:21:39.561 CALIFORNIA RESIDENTS, 01:21:39.628 --> 01:21:41.730 BUSINESSES AND WORKERS. AND WE 01:21:41.796 --> 01:21:43.131 SHOULD CONTINUE TO MEASURE OUR 01:21:43.198 --> 01:21:44.599 SUCCESS BY RESULTS, WHICH 01:21:44.666 --> 01:21:46.768 INCLUDE JOBS, WAGES, CREW DAYS, 01:21:46.835 --> 01:21:48.503 VENDOR SPENDING AND PRODUCTION 01:21:48.570 --> 01:21:49.671 ACTIVITY THAT WOULD OTHERWISE 01:21:49.738 --> 01:21:52.140 HAVE GONE ELSEWHERE. A FEDERAL 01:21:52.207 --> 01:21:54.309 INCENTIVE COULD HELP GROW THE 01:21:54.376 --> 01:21:56.111 PRODUCTION INDUSTRY NATIONALLY. 01:21:56.177 --> 01:21:57.879 A COMPETITIVE CALIFORNIA 01:21:57.946 --> 01:21:59.314 INCENTIVE IS WHAT CAN HELP 01:21:59.381 --> 01:22:01.616 ENSURE CALIFORNIA WORKERS SHARE 01:22:01.683 --> 01:22:03.652 IN THAT GROWTH AND KEEP OUR 01:22:03.718 --> 01:22:06.888 STATE, THE FILM CAPITAL OF THE 01:22:06.955 --> 01:22:08.757 WORLD. CALIFORNIA, SHOULD NOT 01:22:08.823 --> 01:22:10.525 SIMPLY HOPE TO BENEFIT FROM THE 01:22:10.592 --> 01:22:12.260 NEXT CHAPTER OF THE FILM AND 01:22:12.327 --> 01:22:14.062 TELEVISION INDUSTRY. WE MUST 01:22:14.129 --> 01:22:15.563 INVEST IN OUR PROGRAM AND PUT 01:22:15.630 --> 01:22:17.699 OURSELVES IN A POSITION TO LEAD 01:22:17.766 --> 01:22:20.568 IT IN A POSITION TO LEAD IT. 01:22:20.635 --> 01:22:23.471 SORRY, I DID IT. MEMBERS OF THE 01:22:23.538 --> 01:22:25.674 LEGISLATURE. MY APOLOGIES, BUT 01:22:25.740 --> 01:22:27.876 I HAD TO. WE RECOGNIZE THE WORK 01:22:27.942 --> 01:22:29.577 THAT YOU HAVE ALREADY DONE, AND 01:22:29.644 --> 01:22:31.212 WE APPRECIATE YOUR COMMITMENT 01:22:31.279 --> 01:22:33.581 TO THIS INDUSTRY. WE ARE ASKING 01:22:33.648 --> 01:22:35.917 YOU TO BUILD ON THAT FOUNDATION. 01:22:35.984 --> 01:22:37.485 AS THE COMPETITIVE LANDSCAPE 01:22:37.552 --> 01:22:39.454 CONTINUES TO QUICKLY EVOLVE DAY 01:22:39.521 --> 01:22:42.524 TO DAY, I URGE YOU TO SUPPORT A 01:22:42.590 --> 01:22:44.359 STRONGER, MORE COMPETITIVE 01:22:44.426 --> 01:22:45.393 CALIFORNIA FILM AND TELEVISION 01:22:45.460 --> 01:22:47.595 TAX INCENTIVE, ONE THAT 01:22:47.662 --> 01:22:49.397 PROTECTS OUR WORKFORCE, 01:22:49.464 --> 01:22:50.799 ATTRACTS NEW INVESTMENT, AND 01:22:50.865 --> 01:22:52.600 HELPS ENSURE THAT CALIFORNIA 01:22:52.667 --> 01:22:54.102 REMAINS A PLACE WHERE 01:22:54.169 --> 01:22:55.136 PRODUCTIONS ARE MADE AND 01:22:55.203 --> 01:22:56.905 WORKING FAMILIES CAN BUILD 01:22:56.971 --> 01:22:58.873 LASTING CAREERS. OUR MEMBERS 01:22:58.940 --> 01:23:00.642 AND ALL WORKERS HELPED BUILD 01:23:00.709 --> 01:23:02.344 THIS INDUSTRY, AND THEY DESERVE 01:23:02.410 --> 01:23:03.778 THE OPPORTUNITY TO CONTINUE 01:23:03.845 --> 01:23:05.580 BUILDING THEIR FUTURES HERE IN 01:23:05.647 --> 01:23:09.184 CALIFORNIA. THANK YOU VERY MUCH. 01:23:09.250 --> 01:23:12.420 THANK YOU LINDSAY. NOW, I'D 01:23:12.487 --> 01:23:14.556 LIKE TO RECOGNIZE JASON GEORGE, 01:23:14.622 --> 01:23:18.493 WHAT SHE SAID. LISTEN, THANK 01:23:18.560 --> 01:23:19.627 YOU ALL FOR HAVING US HERE 01:23:19.694 --> 01:23:22.597 TODAY. THIS IS WE WE PASSED THE 01:23:22.664 --> 01:23:25.433 WE MOVED THE NUMBER TO 750 01:23:25.500 --> 01:23:26.835 MILLION. AND EVERYBODY CHEERED. 01:23:26.901 --> 01:23:29.671 AND VERY QUICKLY, OTHER STATES 01:23:29.738 --> 01:23:31.806 SURPASSED US WITHIN DAYS 01:23:31.873 --> 01:23:34.042 BECAUSE THEY KNOW WHAT WE YOU 01:23:34.109 --> 01:23:35.543 YOU'RE THE CHOIR. YOU KNOW WHAT 01:23:35.610 --> 01:23:37.245 WE'VE BEEN SCREAMING TO YOUR 01:23:37.312 --> 01:23:39.948 PEERS UP IN SACRAMENTO. THERE'S 01:23:40.014 --> 01:23:41.649 MONEY, THERE'S JOBS. THIS IS 01:23:41.716 --> 01:23:43.485 HOW YOU KEEP THE INDUSTRY AND 01:23:43.551 --> 01:23:45.587 IT FEEDS PEOPLE'S LIVES. IT 01:23:45.653 --> 01:23:46.721 FEEDS FAMILIES. IT HELPS THEM 01:23:46.788 --> 01:23:48.123 GET HEALTH INSURANCE. SOME OF 01:23:48.189 --> 01:23:49.758 YOU HAD THE OPPORTUNITY TO COME 01:23:49.824 --> 01:23:52.794 TO MY SITE. WE DID A TOUR OF MY 01:23:52.861 --> 01:23:54.095 SET. I SHOOT A SHOW CALLED 01:23:54.162 --> 01:23:55.296 GRAY'S ANATOMY. SOME OF YOU 01:23:55.363 --> 01:23:56.698 CAME. THANK YOU FOR COMING DOWN. 01:23:56.765 --> 01:23:59.234 AND. AND YOU SAW THE HUNDREDS 01:23:59.300 --> 01:24:01.403 OF JOBS THAT ARE CREATED 01:24:01.469 --> 01:24:02.837 INCREDIBLY DIVERSE WHEN YOU 01:24:02.904 --> 01:24:05.373 JUST CREATE THE OPPORTUNITY. WE 01:24:05.440 --> 01:24:07.275 HAVE SOMETHING BETWEEN 300 TO 01:24:07.342 --> 01:24:09.144 400, DEPENDING ON WHERE WE ARE 01:24:09.210 --> 01:24:10.779 IN THE SEASON. PEOPLE WORKING 01:24:10.845 --> 01:24:12.914 ON THE SHOW, THAT'S JUST THIS 01:24:12.981 --> 01:24:14.783 SHOW AND THAT'S OF EVERY WALK 01:24:14.849 --> 01:24:16.684 OF LIFE. YOU CAN THINK OF. THE 01:24:16.751 --> 01:24:18.019 65 YEAR OLD WHITE GUY, THE 25 01:24:18.086 --> 01:24:19.821 YEAR OLD WOMAN OF COLOR, THE 30 01:24:19.888 --> 01:24:21.790 YEAR OLD ASIAN, ON AND ON AND 01:24:21.856 --> 01:24:23.725 ON. IT'S ALL OF AMERICA ON MY 01:24:23.792 --> 01:24:26.694 SET, AND I LOVE IT. IT'S BECOME 01:24:26.761 --> 01:24:30.165 A UNICORN IN TOWN BECAUSE 01:24:30.231 --> 01:24:32.000 PEOPLE ARE SHOOTING OUT OF LOS 01:24:32.066 --> 01:24:33.101 ANGELES. PEOPLE ARE SHOOTING 01:24:33.168 --> 01:24:35.270 OUT OF THE COUNTRY. THE. THE 01:24:35.336 --> 01:24:36.404 UNIQUE THING ALSO ABOUT THAT 01:24:36.471 --> 01:24:38.239 TOUR, I THINK, WAS WHEN YOU 01:24:38.306 --> 01:24:42.377 CAME. TOP EXECUTIVES FROM BOTH 01:24:42.444 --> 01:24:45.313 WITHIN THE PRIMARY PRODUCING 01:24:45.380 --> 01:24:47.515 COMPANY, BUT ALSO THE MAJOR 01:24:47.582 --> 01:24:48.650 STUDIO, THE HEAD OF BUSINESS 01:24:48.716 --> 01:24:49.984 AFFAIRS, THE HEAD OF LEGAL 01:24:50.051 --> 01:24:50.952 AFFAIRS CAME DOWN BECAUSE THEY 01:24:51.019 --> 01:24:52.187 ALL RECOGNIZE HOW IMPORTANT 01:24:52.253 --> 01:24:53.555 THIS IS. THIS ISN'T JUST THE 01:24:53.621 --> 01:24:54.722 PEOPLE ON THE GROUND FLOOR. 01:24:54.789 --> 01:24:56.524 THIS IS AT ALL LEVELS OF THE 01:24:56.591 --> 01:24:58.226 INDUSTRY, WANT THE BUSINESS TO 01:24:58.293 --> 01:25:01.463 BE HERE IN LOS ANGELES BECAUSE 01:25:01.529 --> 01:25:02.764 THEY RECOGNIZE THE SYNERGIES 01:25:02.831 --> 01:25:04.766 THAT COME FROM THAT. WHEN A 01:25:04.833 --> 01:25:06.568 SHOWRUNNER CAN ACTUALLY WALK IN 01:25:06.634 --> 01:25:07.569 AND ACTUALLY MEET THE WRITERS. 01:25:07.635 --> 01:25:09.037 WHEN MOST OF YOUR WRITERS ROOM 01:25:09.103 --> 01:25:10.872 HAVE NEVER PERSONALLY MET THE 01:25:10.939 --> 01:25:12.340 ACTORS THAT WORK ON THE SHOW, 01:25:12.407 --> 01:25:14.142 THAT'S A RECIPE FOR YOUR SHOW 01:25:14.209 --> 01:25:16.644 NOT GOING THE DISTANCE WHEN YOU 01:25:16.711 --> 01:25:18.279 DON'T, WHEN YOU HAVE TO LOOK AT 01:25:18.346 --> 01:25:19.514 WHAT THE SET THAT YOUR 01:25:19.581 --> 01:25:20.982 DESIGNERS HAVE WORKED HOURS ON, 01:25:21.049 --> 01:25:22.517 WHEN YOU LOOK AT IT ON ZOOM, SO 01:25:22.584 --> 01:25:24.285 YOU DON'T REALLY SEE THE 01:25:24.352 --> 01:25:25.320 PROPORTIONS, YOU DON'T REALLY 01:25:25.386 --> 01:25:26.488 SEE THE COLORS, WHAT IT'S GOING 01:25:26.554 --> 01:25:28.289 TO LOOK LIKE ON TV BECAUSE 01:25:28.356 --> 01:25:29.457 YOU'RE LOOKING AT IT FROM THE 01:25:29.524 --> 01:25:30.625 CAMERA, FROM YOUR PHONE. THAT'S 01:25:30.692 --> 01:25:33.862 A RECIPE FOR DISASTER. SO THE, 01:25:33.928 --> 01:25:37.932 THE. THE TOUR WAS A GOOD TIME 01:25:37.999 --> 01:25:39.567 AND WE HAD A GOOD TIME. BUT THE 01:25:39.634 --> 01:25:41.469 FUNNY PART WAS THAT WAS ON THE 01:25:41.536 --> 01:25:42.604 GRAY'S ANATOMY SET. I HAD JUST 01:25:42.670 --> 01:25:44.405 FINISHED SHOOTING THE SPIN OFF 01:25:44.472 --> 01:25:45.507 SHOW OF OF GRAY'S CALLED 01:25:45.573 --> 01:25:47.208 STATION 19, AND TO BE PERFECTLY 01:25:47.275 --> 01:25:48.676 HONEST, MY FAMILY AND I 01:25:48.743 --> 01:25:49.744 CONSIDER THEM. MY FAMILY FROM 01:25:49.811 --> 01:25:51.913 THAT SHOW HAVEN'T WORKED IN THE 01:25:51.980 --> 01:25:53.715 TWO AND A HALF YEARS SINCE THAT 01:25:53.781 --> 01:25:55.517 SHOW FINISHED. PEOPLE WITH 20 01:25:55.583 --> 01:25:58.019 AND 30 YEARS EXPERIENCE AS 01:25:58.086 --> 01:25:59.420 CRAFTSPEOPLE ARE DRIVING. UBER 01:25:59.487 --> 01:26:02.690 EATS, ARE SCRAMBLING, ARE 01:26:02.757 --> 01:26:03.825 LOSING HEALTH INSURANCE, ARE 01:26:03.892 --> 01:26:05.560 TRYING TO FIGURE OUT, DO I MAKE 01:26:05.627 --> 01:26:07.028 THE MOVE? I'M HAVING THESE 01:26:07.095 --> 01:26:07.795 CONVERSATIONS WITH FRIENDS. DO 01:26:07.862 --> 01:26:09.931 I MAKE THE MOVE TO OTHER STATES 01:26:09.998 --> 01:26:10.798 WHERE I THINK THERE MIGHT BE 01:26:10.865 --> 01:26:12.534 MORE OPPORTUNITY? I TOLD THE 01:26:12.600 --> 01:26:13.668 STORY BEFORE IN THESE ROOMS 01:26:13.735 --> 01:26:15.537 WHERE I WENT TO SHOOT A TALK 01:26:15.603 --> 01:26:17.105 SHOW IN GEORGIA. THIS IS YEARS 01:26:17.171 --> 01:26:20.475 AGO, AND FIRST OFF, WE'D NEVER 01:26:20.542 --> 01:26:21.709 HEARD OF A TALK SHOW SHOOTING 01:26:21.776 --> 01:26:23.745 IN GEORGIA. THAT WAS A THAT WAS 01:26:23.811 --> 01:26:25.747 A NEW THING FOR ME. BUT WE WENT 01:26:25.813 --> 01:26:27.582 AND DID THE TALK SHOW IN 01:26:27.649 --> 01:26:28.783 GEORGIA. AND AS I'M TALKING TO 01:26:28.850 --> 01:26:29.884 THE PRODUCER AND EXPLAINED TO 01:26:29.951 --> 01:26:31.686 ME HOW THE THE SEGMENT'S GOING 01:26:31.753 --> 01:26:33.588 TO GO, I'M GETTING MIKED UP AND 01:26:33.655 --> 01:26:34.722 I EVENTUALLY LOCK EYES WITH THE 01:26:34.789 --> 01:26:36.591 GUY, MIKING ME UP AND REALIZE 01:26:36.658 --> 01:26:38.560 IT WAS MY BUDDY WHO HAD SHOT A 01:26:38.626 --> 01:26:40.128 SITCOM WITH ME SEVEN YEARS 01:26:40.194 --> 01:26:40.828 BEFORE. I WAS LIKE, WHAT ARE 01:26:40.895 --> 01:26:42.664 YOU DOING HERE? HE SAID, I HAD 01:26:42.730 --> 01:26:44.799 TO GO WHERE THE WORK IS NOW. 01:26:44.866 --> 01:26:48.069 THAT WAS OVER A DOZEN YEARS AGO. 01:26:48.136 --> 01:26:50.538 IT'S ONLY GOTTEN WORSE. AND SO 01:26:50.605 --> 01:26:52.473 PEOPLE FOLLOW THE WORK. I HAVE 01:26:52.540 --> 01:26:54.242 TWO KIDS WHO ARE GOING INTO 01:26:54.309 --> 01:26:55.910 FILM SCHOOL, AND I'LL BE 01:26:55.977 --> 01:26:57.045 PERFECTLY HONEST, FOR THE FIRST 01:26:57.111 --> 01:26:58.212 TIME IN MY ENTIRE CAREER, I 01:26:58.279 --> 01:26:59.981 PRIDED MYSELF ON BEING THE DAD 01:27:00.048 --> 01:27:01.215 WHO WOULD JUST SUPPORT WHATEVER 01:27:01.282 --> 01:27:03.851 HIS KIDS DREAMS ARE. AND I AM, 01:27:03.918 --> 01:27:05.320 BUT IT SCARES THE HELL OUT OF 01:27:05.386 --> 01:27:06.788 ME BECAUSE, I MEAN, LET'S 01:27:06.854 --> 01:27:08.456 FORGET ABOUT AI FOR ONE. FOR 01:27:08.523 --> 01:27:10.058 ONE THING, I'VE ALWAYS THOUGHT, 01:27:10.124 --> 01:27:11.392 WELL, YOU KNOW, YOU'VE GOT A 01:27:11.459 --> 01:27:12.560 FREE PLACE TO STAY WHEN YOU 01:27:12.627 --> 01:27:14.395 COME BACK TO WORK IN THE 01:27:14.462 --> 01:27:15.430 INDUSTRY, RIGHT? THAT RIGHT 01:27:15.496 --> 01:27:17.432 THERE GIVES YOU A LEG UP IN THE 01:27:17.498 --> 01:27:18.499 INDUSTRY. I DON'T KNOW THAT 01:27:18.566 --> 01:27:19.567 THEY'RE COMING BACK HERE TO 01:27:19.634 --> 01:27:21.402 WORK IN THE FILM INDUSTRY AT 01:27:21.469 --> 01:27:22.403 THIS POINT. THAT'S A 01:27:22.470 --> 01:27:23.404 CONVERSATION THAT THEY AND 01:27:23.471 --> 01:27:24.672 THEIR 18 YEAR OLD PEERS WHO ARE 01:27:24.739 --> 01:27:26.541 GOING TO FILM SCHOOL ARE HAVING 01:27:26.608 --> 01:27:30.578 RIGHT NOW. THE I KNOW 01:27:30.645 --> 01:27:32.647 PERSONALLY OF LOOK, I'M A FAN 01:27:32.714 --> 01:27:34.215 OF NOT ONLY RAISING LIKE, 01:27:34.282 --> 01:27:35.216 FORGET ABOUT MAINTAINING AND 01:27:35.283 --> 01:27:36.851 KEEPING. WE NEED TO RAISE THE 01:27:36.918 --> 01:27:39.921 AMOUNT AND IF POSSIBLE, UNCAP 01:27:39.988 --> 01:27:40.955 BECAUSE WE WILL REAP THE 01:27:41.022 --> 01:27:42.390 BENEFITS MORE THAN ANY OTHER 01:27:42.457 --> 01:27:45.393 STATE WILL. BECAUSE THE THE 01:27:45.460 --> 01:27:47.495 HEADS OF STUDIOS ARE NOT MOVING 01:27:47.562 --> 01:27:49.230 ANYTIME SOON. THEY LIKE THE SUN. 01:27:49.297 --> 01:27:51.733 IF WE CAN KEEP IT HERE, THEN 01:27:51.799 --> 01:27:53.935 WE'LL BE GOOD TO GO. BUT I 01:27:54.002 --> 01:27:56.838 PERSONALLY KNOW OF A SHOW THAT 01:27:56.904 --> 01:27:59.340 WANTED TO SHOOT IN CALIFORNIA 01:27:59.407 --> 01:28:00.808 THAT TOOK PAINS TO SHOOT IN 01:28:00.875 --> 01:28:02.210 CALIFORNIA, THAT PUSHED THEIR 01:28:02.276 --> 01:28:03.645 START DATE WHEN THEY DIDN'T GET 01:28:03.711 --> 01:28:06.314 THE INITIAL LOTTERY BECAUSE 01:28:06.381 --> 01:28:07.949 THEY REALLY WANTED TO SHOOT IN 01:28:08.016 --> 01:28:08.716 CALIFORNIA. DO YOU REALIZE HOW 01:28:08.783 --> 01:28:10.818 MUCH TROUBLE, THAT IS TO TO 01:28:10.885 --> 01:28:12.186 PRESS YOUR STUDIO TO SHIFT THE 01:28:12.253 --> 01:28:14.288 START DATE OF A PRODUCTION 01:28:14.355 --> 01:28:15.156 BECAUSE THEY REALLY WANT TO 01:28:15.223 --> 01:28:17.592 SHOOT IN CALIFORNIA. BUT WE RAN 01:28:17.659 --> 01:28:19.227 OUT OF MONEY. THE INCENTIVE RAN 01:28:19.293 --> 01:28:20.461 OUT OF MONEY. SO NOW THAT SHOW 01:28:20.528 --> 01:28:22.263 WILL NOT BE SHOOTING IN 01:28:22.330 --> 01:28:24.098 CALIFORNIA. PRODUCERS WANT TO. 01:28:24.165 --> 01:28:25.533 YOU JUST HAVE TO GIVE IT. GIVE 01:28:25.600 --> 01:28:27.335 THEM THE OPPORTUNITY. I JUST 01:28:27.402 --> 01:28:28.436 REMIND EVERYBODY THAT 01:28:28.503 --> 01:28:29.771 ECOSYSTEMS BREAK DOWN. AND WHEN 01:28:29.837 --> 01:28:30.905 THEY DO, THEY DON'T GROW BACK. 01:28:30.972 --> 01:28:33.441 THE SAHARA DESERT WAS ONCE LUSH 01:28:33.508 --> 01:28:36.310 GREEN WILDLIFE, AND ONCE IT 01:28:36.377 --> 01:28:38.379 DIES, IT DOESN'T COME BACK. WE 01:28:38.446 --> 01:28:41.015 CAN'T JUST MAINTAIN. WE HAVE TO 01:28:41.082 --> 01:28:47.188 INCREASE. THANK YOU. JASON. I'D 01:28:47.255 --> 01:28:48.923 LIKE TO RECOGNIZE REBECCA RYAN 01:28:48.990 --> 01:28:50.658 WITH THE ENTERTAINMENT UNION 01:28:50.725 --> 01:28:52.927 COALITION. I JUST GOT TO SAY, 01:28:52.994 --> 01:28:55.730 THERE ARE PERIODS OF TIME WHEN 01:28:55.797 --> 01:28:56.864 REBECCA'S BEEN MY WORK SISTER. 01:28:56.931 --> 01:28:58.766 I THINK WE'VE BEEN ON THE PHONE 01:28:58.833 --> 01:28:59.901 ALMOST EVERY DAY, SO JUST WANT 01:28:59.967 --> 01:29:01.769 TO THANK YOU. IT'S BEEN JUST A 01:29:01.836 --> 01:29:02.904 PLEASURE TO WORK WITH YOU, 01:29:02.970 --> 01:29:03.938 REBECCA. ABSOLUTELY. THANK YOU. 01:29:04.005 --> 01:29:05.773 AS EVERYONE KNOWS, MY NAME IS 01:29:05.840 --> 01:29:07.942 REBECCA RYAN. AND FIRST OF ALL, 01:29:08.009 --> 01:29:09.110 I WANT TO THANK ASSEMBLY 01:29:09.177 --> 01:29:10.511 MEMBERS AND THE COMMITTEE 01:29:10.578 --> 01:29:12.680 MEMBERS TODAY FOR THEIR LONG 01:29:12.747 --> 01:29:14.449 STANDING AND CONTINUED 01:29:14.515 --> 01:29:16.651 COMMITMENT TO THE 100 YEAR 01:29:16.718 --> 01:29:18.252 RELATIONSHIP BETWEEN CALIFORNIA 01:29:18.319 --> 01:29:20.221 AND THE MOTION PICTURE INDUSTRY 01:29:20.288 --> 01:29:22.023 THAT PROVIDES THOUSANDS OF 01:29:22.090 --> 01:29:24.525 MIDDLE CLASS JOBS. BUT AS 01:29:24.592 --> 01:29:26.294 OTHERS HAVE HIGHLIGHTED, THE 01:29:26.360 --> 01:29:28.563 PAST DOES NOT GUARANTEE THE 01:29:28.629 --> 01:29:31.365 FUTURE. COMPLACENCY IS NOT OUR 01:29:31.432 --> 01:29:33.601 FRIEND IN THIS FIGHT. THERE IS 01:29:33.668 --> 01:29:35.737 NO COMING BACK. ONCE THE 01:29:35.803 --> 01:29:37.438 ECOSYSTEM OF OUR INDUSTRY IS 01:29:37.505 --> 01:29:39.340 WEAKENED BEYOND REPAIR. I'M 01:29:39.407 --> 01:29:40.875 GOING TO BE VERY DIRECT TODAY, 01:29:40.942 --> 01:29:42.910 AND I HOPE YOU WILL RECOGNIZE 01:29:42.977 --> 01:29:45.813 MY CANDOR IS BORN OF URGENCY. I 01:29:45.880 --> 01:29:47.615 HAVE REPRESENTED WORKERS IN 01:29:47.682 --> 01:29:50.418 THIS INDUSTRY FOR OVER 30 YEARS, 01:29:50.485 --> 01:29:52.653 AND AT THIS MOMENT, WE ARE AT A 01:29:52.720 --> 01:29:55.456 TIPPING POINT. A RECENT Â 01:29:55.523 --> 01:29:57.692 STUDY COMMISSIONED BY THE 01:29:57.759 --> 01:30:00.194 UNIONS SHOWS THAT OVER THE PAST 01:30:00.261 --> 01:30:02.363 25 YEARS, AMERICA SHARE OF 01:30:02.430 --> 01:30:04.832 GLOBAL PRODUCTION FOR THE 25 01:30:04.899 --> 01:30:07.168 HIGHEST BUDGETED FILMS DROPPED 01:30:07.235 --> 01:30:11.372 BY 54%. FOR THE SAME TIME 01:30:11.439 --> 01:30:12.907 PERIOD, TV PRODUCTION SUFFERED 01:30:12.974 --> 01:30:15.643 A 32% DECREASE IN DOMESTIC 01:30:15.710 --> 01:30:18.546 MARKET SHARE, AS US SPENDING ON 01:30:18.613 --> 01:30:21.783 TV PRODUCTION MIGRATED ABROAD. 01:30:21.849 --> 01:30:23.951 WORK ON THE HIGHEST BUDGETED 01:30:24.018 --> 01:30:30.124 FILMS HAS DECREASED FROM 74% IN 01:30:30.191 --> 01:30:33.294 2000 TO 31% IN 2025, A 01:30:33.361 --> 01:30:36.864 PRECIPITOUS DROP IN 25 YEARS. 01:30:36.931 --> 01:30:38.699 THAT REDUCTION IN U.S. 01:30:38.766 --> 01:30:40.868 PRODUCTION HAS BEEN ESPECIALLY 01:30:40.935 --> 01:30:43.337 DEVASTATING FOR CALIFORNIA, AS 01:30:43.404 --> 01:30:47.008 THE STATE NOW HAS ONLY 38% OF 01:30:47.074 --> 01:30:49.510 DOMESTIC PRODUCTION. THE 38% OF 01:30:49.577 --> 01:30:52.013 DOMESTIC PRODUCTION THAT 01:30:52.079 --> 01:30:54.148 REMAINS. THE IRONY IS THAT 01:30:54.215 --> 01:30:55.683 PEOPLE AND GOVERNMENTS AROUND 01:30:55.750 --> 01:30:57.819 THE WORLD SEE THE ENTERTAINMENT 01:30:57.885 --> 01:30:59.353 INDUSTRY AS AN ECONOMIC ENGINE 01:30:59.420 --> 01:31:01.722 THAT CREATES GOOD PAYING JOBS, 01:31:01.789 --> 01:31:03.558 AND THEY HAVE MADE BUILDING A 01:31:03.624 --> 01:31:06.127 SKILLED WORKFORCE AND NECESSARY 01:31:06.194 --> 01:31:08.162 INFRASTRUCTURE A PRIORITY. YET 01:31:08.229 --> 01:31:10.398 IN OUR HOME STATE, IT IS 01:31:10.464 --> 01:31:11.966 SOMETIMES AN UPHILL EFFORT TO 01:31:12.033 --> 01:31:15.169 GET POLICY MAKERS TO RECOGNIZE 01:31:15.236 --> 01:31:17.572 THE CULTURAL, ECONOMIC AND 01:31:17.638 --> 01:31:19.407 HISTORICAL IMPORTANCE OF THIS 01:31:19.473 --> 01:31:20.908 INDUSTRY. WE SHOULD BE PROUD 01:31:20.975 --> 01:31:22.944 THAT CALIFORNIA'S PRODUCTION 01:31:23.010 --> 01:31:24.412 INCENTIVE IS, AND ALWAYS HAS 01:31:24.478 --> 01:31:26.547 BEEN, THE MOST ACCOUNTABLE AND 01:31:26.614 --> 01:31:28.783 TRANSPARENT TAX CREDIT PROGRAM. 01:31:28.850 --> 01:31:30.251 THE PROJECTS WITH THE MOST JOBS 01:31:30.318 --> 01:31:32.386 ARE GIVEN PRIORITY, AND TAX 01:31:32.453 --> 01:31:34.522 CREDITS ARE NOT AWARDED UNTIL A 01:31:34.589 --> 01:31:35.990 PRODUCTION DELIVERS THE 01:31:36.057 --> 01:31:38.059 PROMISED JOB. NO OTHER STATE 01:31:38.125 --> 01:31:40.695 TAX CREDIT PROGRAM IS. NO OTHER 01:31:40.761 --> 01:31:42.096 TAX CREDIT PROGRAM IS 01:31:42.163 --> 01:31:43.865 STRUCTURED IN THIS WAY. AND THE 01:31:43.931 --> 01:31:45.666 LAW REFLECTS OUR STATE'S 01:31:45.733 --> 01:31:47.835 PRIORITIES AND VALUES. THAT 01:31:47.902 --> 01:31:50.037 SAID, IT IS ALSO THE MOST 01:31:50.104 --> 01:31:51.772 COMPLEX, AND THAT COMPLEXITY 01:31:51.839 --> 01:31:54.041 HAS HURT US AS WE COMPETE BOTH 01:31:54.108 --> 01:31:55.710 WITHIN THE U.S. AND THE REST OF 01:31:55.776 --> 01:31:59.313 THE WORLD. AB 1138 HAS HAD A 01:31:59.380 --> 01:32:01.249 POSITIVE IMPACT. THE INCENTIVE 01:32:01.315 --> 01:32:02.950 IS RESPONSIBLE FOR SLIGHTLY 01:32:03.017 --> 01:32:06.254 OVER 40% OF ALL PERMITS FOR 01:32:06.320 --> 01:32:07.622 SCRIPTED PRODUCTION IN LA 01:32:07.688 --> 01:32:09.757 DURING THE LAST QUARTER. THE 01:32:09.824 --> 01:32:11.559 INCENTIVE IS PROPPING UP LA'S 01:32:11.626 --> 01:32:12.660 INDUSTRY, BUT THERE ARE MANY 01:32:12.727 --> 01:32:14.462 MORE PRODUCTIONS THAT WANTED TO 01:32:14.528 --> 01:32:16.597 STAY BUT COULD NOT. BECAUSE OF 01:32:16.664 --> 01:32:18.432 THE CAP ON FUNDING AND THE 01:32:18.499 --> 01:32:20.601 LIMITED FUNDING IS FURTHER 01:32:20.668 --> 01:32:22.737 EXACERBATED BY THE STATUTORY 01:32:22.803 --> 01:32:24.171 REQUIREMENT TO ALLOCATE MONEY 01:32:24.238 --> 01:32:26.374 FOR RECURRING PRODUCTIONS. ALL 01:32:26.440 --> 01:32:28.142 OF THIS SERVES TO REDUCE THE 01:32:28.209 --> 01:32:30.278 AMOUNT AVAILABLE FOR NEW 01:32:30.344 --> 01:32:32.113 PRODUCTIONS. WE APPRECIATE THAT 01:32:32.179 --> 01:32:33.381 THIS HEARING IS THE BEGINNING 01:32:33.447 --> 01:32:35.349 OF AN EFFORT TO DEAL WITH THIS, 01:32:35.416 --> 01:32:36.784 AND THOSE OF US WHO WORK IN 01:32:36.851 --> 01:32:38.286 THIS INDUSTRY BELIEVE THIS IS 01:32:38.352 --> 01:32:40.087 WHAT IT WILL TAKE TO BRING IT 01:32:40.154 --> 01:32:41.956 BACK. FIRST, WHILE THE PROGRAM 01:32:42.023 --> 01:32:43.991 NOW HAS A COMPETITIVE BASE 01:32:44.058 --> 01:32:45.059 PERCENTAGE, IT REMAINS 01:32:45.126 --> 01:32:47.194 DIFFICULT TO USE. WE MUST FIND 01:32:47.261 --> 01:32:48.729 A PATH TO MAINTAINING OUR 01:32:48.796 --> 01:32:50.464 VALUES THAT ALSO MAKES THE 01:32:50.531 --> 01:32:52.633 PROGRAM EASIER TO NAVIGATE. 01:32:52.700 --> 01:32:54.068 SECOND, WE SHOULD AVOID 01:32:54.135 --> 01:32:55.536 SEGMENTING THE VARIOUS ELEMENTS 01:32:55.603 --> 01:32:57.338 OF PRODUCTION WITH MULTIPLE 01:32:57.405 --> 01:32:59.440 APPROACHES AND PROGRAMS. NOT 01:32:59.507 --> 01:33:02.009 ONLY DOES THAT RISK RETAINING 01:33:02.076 --> 01:33:04.178 ONLY A PORTION OF OUR INDUSTRY, 01:33:04.245 --> 01:33:05.947 BUT IT WEAKENS THE 01:33:06.013 --> 01:33:07.014 INFRASTRUCTURE NECESSARY FOR 01:33:07.081 --> 01:33:09.183 LARGER PRODUCTIONS TO RETURN. 01:33:09.250 --> 01:33:10.985 THE CALIFORNIA FILM AND 01:33:11.052 --> 01:33:12.820 TELEVISION JOBS PROGRAM WAS 01:33:12.887 --> 01:33:14.355 ALWAYS ENVISIONED AS COVERING 01:33:14.422 --> 01:33:17.158 THE ENTIRE SCOPE OF PRODUCTION 01:33:17.224 --> 01:33:19.593 AND ALL THE JOBS THAT ENTAILS. 01:33:19.660 --> 01:33:20.995 THIRD, THERE IS AN IMPORTANT 01:33:21.062 --> 01:33:22.830 ROLE NEIGHBORHOOD, CITIES AND 01:33:22.897 --> 01:33:25.366 COUNTIES MUST PLAY IN NOT JUST 01:33:25.433 --> 01:33:27.935 WELCOMING, BUT FACILITATING 01:33:28.002 --> 01:33:29.370 PRODUCTION. WE KNOW THIS IS 01:33:29.437 --> 01:33:31.505 DIFFICULT AT A TIME, BUT IF 01:33:31.572 --> 01:33:32.940 WHEN LOCAL GOVERNMENT BUDGETS 01:33:33.007 --> 01:33:34.709 ARE STRAINED. BUT IF THE 01:33:34.775 --> 01:33:36.911 REVENUE GENERATED BY PRODUCTION 01:33:36.978 --> 01:33:38.913 LEAVES AND WORKERS DISAPPEAR, 01:33:38.980 --> 01:33:41.549 IT HURTS THOSE MUNICIPALITIES. 01:33:41.615 --> 01:33:42.817 FOURTH, AND MOST CRITICALLY, 01:33:42.883 --> 01:33:44.452 THE CURRENT CALIFORNIA PROGRAM 01:33:44.518 --> 01:33:46.654 IS FUNDAMENTALLY INADEQUATE 01:33:46.721 --> 01:33:48.756 BECAUSE OF WHAT IT CANNOT DO 01:33:48.823 --> 01:33:51.625 SERVE ALL ELIGIBLE PARTICIPANTS. 01:33:51.692 --> 01:33:53.861 THE CALIFORNIA FILM COMMISSION 01:33:53.928 --> 01:33:55.262 CONSISTENTLY TURNS PRODUCTIONS 01:33:55.329 --> 01:33:57.031 AWAY BECAUSE THE MONEY RUNS OUT 01:33:57.098 --> 01:33:59.233 LONG BEFORE THE DEMAND DOES. 01:33:59.300 --> 01:34:00.735 MANY OF THESE CHALLENGES WOULD 01:34:00.801 --> 01:34:02.837 GO AWAY IF THAT BASIC PROBLEM 01:34:02.903 --> 01:34:04.972 WAS SOLVED. CALIFORNIA WILL 01:34:05.039 --> 01:34:06.807 NEVER BE COMPETITIVE WITH A 01:34:06.874 --> 01:34:08.943 CAPPED PROGRAM WHEN MANY STATES 01:34:09.010 --> 01:34:11.445 AND MOST COUNTRIES ARE UNCAPPED. 01:34:11.512 --> 01:34:13.981 WE RECOGNIZE THIS IS A TALL 01:34:14.048 --> 01:34:16.150 ORDER. CALIFORNIA HAS MANY 01:34:16.217 --> 01:34:17.318 CHALLENGES, AND WE'RE NOT BLIND 01:34:17.385 --> 01:34:19.453 TO THE PROBLEMS. BUT LOSING THE 01:34:19.520 --> 01:34:21.188 JOBS, BUSINESSES, TAX REVENUE 01:34:21.255 --> 01:34:23.724 AND TOURISM THIS INDUSTRY 01:34:23.791 --> 01:34:25.493 PROVIDES WILL DO NOTHING BUT 01:34:25.559 --> 01:34:27.695 DAMAGE THE STATE. WE WANT OUR 01:34:27.762 --> 01:34:29.430 INDUSTRY TO BE PART OF THE 01:34:29.497 --> 01:34:31.032 SOLUTION. AS WE'VE ALWAYS SAID, 01:34:31.098 --> 01:34:32.400 THE BOTTOM LINE IS THAT WHEN 01:34:32.466 --> 01:34:34.568 OUR INDUSTRY THRIVES, 01:34:34.635 --> 01:34:40.608 CALIFORNIA THRIVES. THANK YOU. 01:34:40.674 --> 01:34:41.809 THANK. THANK YOU ALL. RUNNING A 01:34:41.876 --> 01:34:42.910 LITTLE BIT BEHIND. BUT WE'VE 01:34:42.977 --> 01:34:44.612 GOT ABOUT 15 MINUTES FOR 01:34:44.678 --> 01:34:46.447 QUESTIONS FROM MEMBERS OF THE 01:34:46.514 --> 01:34:47.915 PANEL. I'VE GOT TO STEP OUT FOR 01:34:47.982 --> 01:34:49.817 A MINUTE. SO I'D LIKE TO ASK 01:34:49.884 --> 01:34:50.818 ASSEMBLY MEMBER SCHULTZ IF 01:34:50.885 --> 01:34:52.019 HE'LL PRESIDE FOR JUST A MINUTE, 01:34:52.086 --> 01:34:53.921 AND THEN I'LL BE RIGHT BACK. SO 01:34:53.988 --> 01:34:55.790 OVER TO YOU. SURE THING, MISTER 01:34:55.856 --> 01:34:57.558 CHAIR. OKAY. ALL RIGHT. THANK 01:34:57.625 --> 01:34:59.026 YOU VERY MUCH, MR. CHAIR. 01:34:59.093 --> 01:35:00.027 COLLEAGUES. WOULD ANYONE LIKE 01:35:00.094 --> 01:35:02.530 TO BEGIN? SURE. ALL RIGHT, MR. 01:35:02.596 --> 01:35:04.665 GIBSON, THANK YOU VERY MUCH. 01:35:04.732 --> 01:35:06.667 FIRST OF ALL, I WANT TO SAY TO 01:35:06.734 --> 01:35:07.868 ALL OF YOU YOU'VE GIVEN I'VE 01:35:07.935 --> 01:35:09.904 TAKEN TWO PAGES. TWO PAGES OF 01:35:09.970 --> 01:35:11.906 NOTES, BUT I WON'T GO THROUGH 01:35:11.972 --> 01:35:13.074 THEM ALL. I WANT TO SAY YOUR 01:35:13.140 --> 01:35:14.141 STORY, ESPECIALLY MISS 01:35:14.208 --> 01:35:15.176 RODRIGUEZ. THANK YOU VERY MUCH 01:35:15.242 --> 01:35:19.580 FOR GIVING US YOUR AUTHENTIC, 01:35:19.647 --> 01:35:21.649 TRANSPARENT EMOTIONS. IT'S NOT 01:35:21.715 --> 01:35:24.618 LOST ON ME SHARING YOUR STORY, 01:35:24.685 --> 01:35:26.353 ESPECIALLY. HOW'S YOUR MOTHER? 01:35:26.420 --> 01:35:27.521 SHE'S WALKING WITH A CANE. SO 01:35:27.588 --> 01:35:28.889 WE'RE GOING. WE'RE BACK IN 01:35:28.956 --> 01:35:30.391 BUSINESS. WELL, GOOD. THANK YOU 01:35:30.458 --> 01:35:32.393 VERY MUCH. IT'S THOSE KINDS OF 01:35:32.460 --> 01:35:34.695 STORIES, ESPECIALLY WITH THE 01:35:34.762 --> 01:35:36.464 COMMITTEE, THAT THAT REALLY 01:35:36.530 --> 01:35:38.599 BRINGS IT HOME AND A REAL 01:35:38.666 --> 01:35:40.367 AUTHENTIC WAY. SO I REALLY 01:35:40.434 --> 01:35:41.802 APPRECIATE EACH ONE OF YOUR 01:35:41.869 --> 01:35:43.938 STORIES. I KNOW, MR. MILLER, 01:35:44.004 --> 01:35:45.806 YOU TALKED ABOUT REMOVING THE 01:35:45.873 --> 01:35:48.309 CAP AND EACH OF YOU TALK. WHAT 01:35:48.375 --> 01:35:49.777 DOES REMOVING THE CAP LOOKS 01:35:49.844 --> 01:35:52.580 LIKE? SO IF SOMEONE CAN TALK 01:35:52.646 --> 01:35:53.948 ABOUT WHAT DOES THAT LOOK LIKE 01:35:54.014 --> 01:35:56.951 FOR US? BECAUSE FOR US AS 01:35:57.017 --> 01:35:58.352 LAWMAKERS AND MEMBERS OF THE 01:35:58.419 --> 01:36:00.154 LEGISLATURE, RIGHT, WE HAVE TO 01:36:00.221 --> 01:36:02.356 DEAL WITH A STRUCTURAL BUDGET 01:36:02.423 --> 01:36:06.627 DEFICIT. WE HAVE TO TRY TO 01:36:06.694 --> 01:36:08.062 IMAGINE WHAT OUR STATE LOOKS 01:36:08.129 --> 01:36:10.264 LIKE IN TERMS OF BUDGETING 01:36:10.331 --> 01:36:13.534 HEALTH CARE, H.R. ONE, WHICH IS 01:36:13.601 --> 01:36:14.735 WHAT THIS FOOL IS DOING TO US 01:36:14.802 --> 01:36:16.937 IN WASHINGTON, D.C. BECAUSE 01:36:17.004 --> 01:36:19.240 IT'S REALLY UP WHAT HE'S DOING 01:36:19.306 --> 01:36:20.808 IN A NUMBER OF DIFFERENT WAYS 01:36:20.875 --> 01:36:22.576 WITH HEALTH CARE. AND WE HAVE 01:36:22.643 --> 01:36:25.412 TO BALANCE ALL OF THAT. SO WHAT 01:36:25.479 --> 01:36:26.881 DOES REMOVING THE CAP LOOKS 01:36:26.947 --> 01:36:30.151 LIKE FOR US MOVING FORWARD? SO 01:36:30.217 --> 01:36:32.920 IF YOU CAN ANSWER THAT QUESTION, 01:36:32.987 --> 01:36:36.290 OKAY, HERE, I MEAN, I THINK THE 01:36:36.357 --> 01:36:38.726 THE ANSWER IS IT MEANS THAT WE 01:36:38.792 --> 01:36:40.928 HAVE TO UNDERSTAND HOW MUCH 01:36:40.995 --> 01:36:42.696 THIS INDUSTRY BRINGS TO THE 01:36:42.763 --> 01:36:44.131 STATE. WE HAVE TO DO VERY 01:36:44.198 --> 01:36:47.501 DETAILED ANALYSIS ABOUT ALL OF 01:36:47.568 --> 01:36:49.904 THE VALUE THAT COMES IN, IN TAX 01:36:49.970 --> 01:36:52.206 REVENUE. THERE'S A WE'VE BEEN 01:36:52.273 --> 01:36:54.208 IN DISCUSSIONS ABOUT A VERY 01:36:54.275 --> 01:36:56.443 ROBUST STUDY TO REALLY BE ABLE 01:36:56.510 --> 01:36:59.547 TO ARTICULATE CLEARLY AND WITH 01:36:59.613 --> 01:37:02.116 DATA THAT EVERY FOR EVERY 01:37:02.183 --> 01:37:04.985 DOLLAR THE STATE SPENDS, IT HAS 01:37:05.052 --> 01:37:07.555 MORE VALUE COMING BACK INTO THE 01:37:07.621 --> 01:37:09.723 STATE. BUT BUT REMOVING THE CAP 01:37:09.790 --> 01:37:12.126 IS DIFFICULT. PRIORITIES ARE 01:37:12.193 --> 01:37:13.961 ALWAYS COMPETING WITH EACH 01:37:14.028 --> 01:37:16.163 OTHER. AND WHAT WE'RE SAYING IS 01:37:16.230 --> 01:37:17.765 IF WE MAKE THIS A PRIORITY, 01:37:17.831 --> 01:37:19.867 IT'S VALUE ADDED TO THE STATE. 01:37:19.934 --> 01:37:22.636 AND THAT HAS TO HAPPEN BY 01:37:22.703 --> 01:37:24.205 ALLOWING US TO FULLY COMPETE. 01:37:24.271 --> 01:37:27.308 AND WHEN 14 PRODUCTIONS, 14 01:37:27.374 --> 01:37:29.577 TELEVISION SERIES WERE UNABLE 01:37:29.643 --> 01:37:31.278 TO GET THE INCENTIVE IN THE 01:37:31.345 --> 01:37:33.814 LAST ROUND BECAUSE THERE WAS NO 01:37:33.881 --> 01:37:36.016 MONEY LEFT. WHAT THAT DID WAS 01:37:36.083 --> 01:37:37.851 SEND ALL OF THOSE EARNINGS, ALL 01:37:37.918 --> 01:37:40.588 OF THOSE JOBS, ALL OF THAT TAX 01:37:40.654 --> 01:37:42.856 REVENUE, ALL OF THAT MONEY INTO 01:37:42.923 --> 01:37:46.093 SMALL BUSINESSES, OTHER PLACES. 01:37:46.160 --> 01:37:47.795 SO I, I UNDERSTAND THE 01:37:47.861 --> 01:37:49.597 CHALLENGE IS, IS SIGNIFICANT 01:37:49.663 --> 01:37:51.765 FOR ALL OF YOU. I RECOGNIZE 01:37:51.832 --> 01:37:53.234 THAT WE SHOULD LOOK AT WHERE, 01:37:53.300 --> 01:37:55.236 WHERE OTHER PLACES DO IT AND 01:37:55.302 --> 01:37:58.606 HOW THEY DO IT. AND I THINK IT 01:37:58.672 --> 01:38:00.007 HAPPENS. SO, SO HAVE OTHER 01:38:00.074 --> 01:38:01.141 STATES. SO I'M JUST CURIOUS, 01:38:01.208 --> 01:38:03.644 HAVE ANYONE DONE A STUDY? WHAT 01:38:03.711 --> 01:38:05.813 OTHER STATES WHO HAVE REMOVED 01:38:05.879 --> 01:38:07.681 CAPS, HOW THEY ARE, HOW THEY 01:38:07.748 --> 01:38:09.450 HAVE DONE IT? BECAUSE I'M SURE, 01:38:09.516 --> 01:38:10.584 YOU KNOW, THEY'RE MANAGING AND 01:38:10.651 --> 01:38:12.720 TRYING TO DO THE SAME EXACT 01:38:12.786 --> 01:38:14.421 THING. WHAT DOES THOSE OTHER 01:38:14.488 --> 01:38:15.889 STATES, THEIR PROBLEMS ARE THE 01:38:15.956 --> 01:38:17.591 SAME AS OUR PROBLEMS. THEY'RE 01:38:17.658 --> 01:38:19.526 TRYING TO. BUT WE'RE THE FOURTH 01:38:19.593 --> 01:38:21.762 LARGEST ECONOMY. SO AS YOU KNOW, 01:38:21.829 --> 01:38:23.330 THOSE STATES ARE MANAGING THEIR 01:38:23.397 --> 01:38:25.666 OWN BUDGETS. HOW ARE THEY DOING 01:38:25.733 --> 01:38:27.501 IT? SO WE CAN LOOK AT HOW 01:38:27.568 --> 01:38:28.736 THEY'RE DOING IT. SO WE CAN 01:38:28.802 --> 01:38:32.072 LOOK AT HOW TO DO SOME SOME 01:38:32.139 --> 01:38:34.708 COMPARISON AND CONTRAST AND HOW 01:38:34.775 --> 01:38:37.144 TO MANAGE OUR STATE TO SEE WHAT 01:38:37.211 --> 01:38:38.245 THEY'RE DOING. AM I MAKING 01:38:38.312 --> 01:38:40.114 SENSE? YOU ARE. BUT I THINK WE 01:38:40.180 --> 01:38:41.482 HAVE. I THINK IT'S VERY 01:38:41.548 --> 01:38:42.916 IMPORTANT. MEMBER GIBSON TO 01:38:42.983 --> 01:38:45.853 LEVEL SET HERE, BECAUSE SO MANY 01:38:45.919 --> 01:38:47.655 OF THE OTHER JURISDICTIONS THAT 01:38:47.721 --> 01:38:50.124 HAVE CREATED TAX INCENTIVES 01:38:50.190 --> 01:38:51.892 STARTED WITH A PRODUCTION BASE 01:38:51.959 --> 01:38:54.762 OF ZERO OR NEAR ZERO. SO 01:38:54.828 --> 01:38:56.897 EVERYTHING WAS ADDITIVE TO THEM, 01:38:56.964 --> 01:38:58.098 RIGHT. AND YOU CAN WE CAN LOOK 01:38:58.165 --> 01:39:00.200 AT THE STATE OF GEORGIA AS A 01:39:00.267 --> 01:39:02.703 PRIME EXAMPLE. THE STATE OF 01:39:02.770 --> 01:39:03.771 GEORGIA, PRIOR TO THEIR 01:39:03.837 --> 01:39:06.340 DOMESTIC TAX INCENTIVE, HAD 01:39:06.407 --> 01:39:11.745 ABOUT 250, ITS MEMBERS IN TOTAL 01:39:11.812 --> 01:39:14.248 IN THE STATE OF GEORGIA. THEY 01:39:14.315 --> 01:39:16.083 CURRENTLY HAVE A WORK ON FILM 01:39:16.150 --> 01:39:18.585 AND TELEVISION WORKFORCE OF ITS 01:39:18.652 --> 01:39:21.088 MEMBERS ALONE OF OVER 10,000. 01:39:21.155 --> 01:39:24.091 RIGHT. IT WORKS IN CALIFORNIA. 01:39:24.158 --> 01:39:28.629 THE EFFECT OF THE CAP IS IN THE 01:39:28.696 --> 01:39:30.464 OVERWHELMING MAJORITY OF CASES, 01:39:30.531 --> 01:39:32.566 IF YOU GET AN INCENTIVE AND IT 01:39:32.633 --> 01:39:34.068 WORKS, YOU WILL STAY IN 01:39:34.134 --> 01:39:36.203 CALIFORNIA. IF YOU DON'T GET AN 01:39:36.270 --> 01:39:37.237 INCENTIVE AND YOU DON'T HAVE 01:39:37.304 --> 01:39:40.507 ACCESS, YOU WILL LEAVE. SO I 01:39:40.574 --> 01:39:42.343 CHALLENGE, TO A DEGREE THE 01:39:42.409 --> 01:39:44.478 IMPACT ON THE STATE BUDGET, 01:39:44.545 --> 01:39:47.348 BECAUSE IT PRESUMES THAT THOSE 01:39:47.414 --> 01:39:49.817 COMPANIES THAT DON'T QUALIFY 01:39:49.883 --> 01:39:51.952 FOR THE INCENTIVE PROGRAM WILL 01:39:52.019 --> 01:39:54.588 STAY. AND THE REALITY OF IT IS 01:39:54.655 --> 01:39:56.690 THEY WILL NOT. AND WE HAVE 01:39:56.757 --> 01:39:59.960 ALMOST CREATED AN INCENTIVE FOR 01:40:00.027 --> 01:40:01.061 COMPANIES TO LEAVE. I'LL GIVE 01:40:01.128 --> 01:40:02.563 YOU THREE EXAMPLES OF SHOWS 01:40:02.629 --> 01:40:04.531 THAT I SUSPECT EVERY ONE OF YOU 01:40:04.598 --> 01:40:07.868 ARE INTIMATELY AWARE OF. THERE 01:40:07.935 --> 01:40:10.404 BEEN CULTURAL SHOWS RECENTLY 01:40:10.471 --> 01:40:12.506 AMERICA'S GOT TALENT, AMERICAN 01:40:12.573 --> 01:40:14.742 IDOL AND THE MASKED SINGER. 01:40:14.808 --> 01:40:16.877 THOSE ARE MASSIVE PRODUCTIONS 01:40:16.944 --> 01:40:18.278 THAT EMPLOY HUNDREDS AND 01:40:18.345 --> 01:40:19.780 HUNDREDS AND HUNDREDS OF 01:40:19.847 --> 01:40:20.814 TECHNICIANS. THEY'RE NOT 01:40:20.881 --> 01:40:22.683 SCRIPTED SERIES, RIGHT, BUT 01:40:22.750 --> 01:40:24.885 THEY HAVE AN IMPACT ON SO MUCH 01:40:24.952 --> 01:40:26.587 OF THE WORKFORCE. IN THE SAME 01:40:26.653 --> 01:40:29.490 WAY, THOSE SHOWS WERE NOT 01:40:29.556 --> 01:40:30.858 ELIGIBLE TO ACCESS THE 01:40:30.924 --> 01:40:31.759 CALIFORNIA TAX INCENTIVE 01:40:31.825 --> 01:40:33.026 BECAUSE THEY WERE EXISTING 01:40:33.093 --> 01:40:35.562 SHOWS IN CALIFORNIA. WE CAN 01:40:35.629 --> 01:40:37.398 ARGUE THE MERITS AND WHY WE 01:40:37.464 --> 01:40:40.734 PUSHED. WHAT WE DID IS CREATE 01:40:40.801 --> 01:40:43.137 AN INCENTIVE FOR THEM TO LEAVE. 01:40:43.203 --> 01:40:45.038 ALL THREE OF THOSE SHOWS HAVE 01:40:45.105 --> 01:40:47.408 LEFT CALIFORNIA TO OR IN 01:40:47.474 --> 01:40:48.876 GEORGIA, AND ONE IS IN NEW 01:40:48.942 --> 01:40:51.445 JERSEY. THAT HAS BEEN A NET 01:40:51.512 --> 01:40:53.981 IMPACT OF ITS JOBS OF PROBABLY 01:40:54.047 --> 01:40:57.918 CLOSE TO 900 JOBS PER SEASON. 01:40:57.985 --> 01:41:00.387 RIGHT. SO THOSE SHOWS DIDN'T 01:41:00.454 --> 01:41:03.924 STAY BECAUSE ALL CALIFORNIA HIT 01:41:03.991 --> 01:41:05.459 THE CAP. SO WE'RE GOING TO STAY 01:41:05.526 --> 01:41:07.995 ANYWAY AND PAY. IF WE DON'T 01:41:08.061 --> 01:41:08.762 PROVIDE AN INCENTIVE FOR THEM 01:41:08.829 --> 01:41:10.397 TO STAY, THEY WILL LEAVE. AND 01:41:10.464 --> 01:41:13.634 WHEN THEY LEAVE, PAYROLL TAX, 01:41:13.700 --> 01:41:16.804 THE PROPERTY TAX, THE SALES TAX, 01:41:16.870 --> 01:41:19.039 THE VALUE OF REAL ESTATE, THE 01:41:19.106 --> 01:41:21.542 ECONOMIC DRIVER, THE FOLKS 01:41:21.608 --> 01:41:22.976 LITERALLY GOING TO THE GAS 01:41:23.043 --> 01:41:24.778 STATION, THE DRY CLEANERS AND 01:41:24.845 --> 01:41:27.648 THE GROCERY STORES GOES AWAY 01:41:27.714 --> 01:41:28.715 BECAUSE EITHER THEY'RE NOT 01:41:28.782 --> 01:41:30.551 WORKING AND THEY DON'T NEED 01:41:30.617 --> 01:41:31.985 THOSE THINGS, OR THEY'RE 01:41:32.052 --> 01:41:33.420 LOOKING FOR ANOTHER INDUSTRY OR 01:41:33.487 --> 01:41:35.556 TO MOVE COMPLETELY OUT OF STATE. 01:41:35.622 --> 01:41:37.724 SO I THINK WHEN WE LOOK AT THE 01:41:37.791 --> 01:41:40.260 COST TO CALIFORNIA, WE HAVE TO 01:41:40.327 --> 01:41:42.062 MAKE SURE THAT WE ARE NOT 01:41:42.129 --> 01:41:43.864 PRESUMING EVERYTHING WILL STAY 01:41:43.931 --> 01:41:45.265 IF THEY CAN'T ACCESS THE 01:41:45.332 --> 01:41:46.433 PROGRAM. AND THAT'S WHAT WE 01:41:46.500 --> 01:41:48.569 TALK IN TERMS OF CALIFORNIA'S 01:41:48.635 --> 01:41:51.405 BUDGET WILL LOSE. THAT WOULD BE 01:41:51.472 --> 01:41:54.274 TRUE IF EVERY PRODUCTION STAYED, 01:41:54.341 --> 01:41:55.342 REGARDLESS OF WHETHER OR NOT 01:41:55.409 --> 01:41:57.177 THEY GOT THE INCENTIVE. THAT 01:41:57.244 --> 01:41:58.745 ISN'T WHAT HAS HAPPENED. THAT'S 01:41:58.812 --> 01:42:00.147 WHY WE'VE SEEN. IF THAT WERE 01:42:00.214 --> 01:42:01.815 TRUE, WE WOULD NOT HAVE SEEN 01:42:01.882 --> 01:42:05.085 THE SIGNIFICANT 45,000,000 HOUR 01:42:05.152 --> 01:42:09.490 A YEAR COMPARING 2024 TO OUR 01:42:09.556 --> 01:42:10.858 2025 TO 2022 THAT WE SAW, 01:42:10.924 --> 01:42:12.526 BECAUSE IT WOULD HAVE BEEN, OH, 01:42:12.593 --> 01:42:13.627 WELL, THE CAP ISN'T THERE. 01:42:13.694 --> 01:42:15.562 WE'RE GOING TO STAY. THAT MONEY 01:42:15.629 --> 01:42:17.297 ISN'T THERE AND THEY WILL LEAVE. 01:42:17.364 --> 01:42:19.166 SO I THINK WE HAVE TO LOOK AT 01:42:19.233 --> 01:42:20.968 THE INVERSE. WHAT IS THE 01:42:21.034 --> 01:42:22.369 BENEFIT OF PRODUCTION STAYING 01:42:22.436 --> 01:42:25.272 IN CALIFORNIA. AND IF THOSE 900 01:42:25.339 --> 01:42:27.407 JOBS ON THOSE THREE JOBS I 01:42:27.474 --> 01:42:30.310 ARTICULATED, YOU CAN FIGURE OUT 01:42:30.377 --> 01:42:32.112 WHAT THAT MEANS, RIGHT? THESE 01:42:32.179 --> 01:42:36.316 ARE 900 JOBS AT BETWEEN 50 AND 01:42:36.383 --> 01:42:38.952 100 PLUS DOLLARS AN HOUR, WITH 01:42:39.019 --> 01:42:41.088 $25 AN HOUR IN BENEFITS AND A 01:42:41.154 --> 01:42:42.923 HEALTH SYSTEM THAT THAT KEEPS 01:42:42.990 --> 01:42:45.859 PEOPLE OFF THE DOLE. IT KEEPS 01:42:45.926 --> 01:42:47.427 FOLKS, THOSE 900 PEOPLE THAT 01:42:47.494 --> 01:42:49.763 ARE PROBABLY EXHAUSTED, THEIR 01:42:49.830 --> 01:42:50.831 CALIFORNIA UNEMPLOYMENT 01:42:50.898 --> 01:42:52.966 BENEFITS, THAT'S A DRAIN ON THE 01:42:53.033 --> 01:42:55.168 STATE, RIGHT? THOSE ARE 900 01:42:55.235 --> 01:42:57.304 JOBS THAT ARE NOT PAYING 01:42:57.371 --> 01:42:59.506 CALIFORNIA STATE INCOME TAX. IF 01:42:59.573 --> 01:43:00.507 THEY'RE MOVING OR THEY HAVE TO 01:43:00.574 --> 01:43:02.242 SELL THEIR HOMES, THEY'RE NOT 01:43:02.309 --> 01:43:03.744 PAYING PROPERTY TAX. THEY'RE 01:43:03.810 --> 01:43:04.912 NOT PAYING SALES TAX BECAUSE 01:43:04.978 --> 01:43:06.647 THEY DON'T HAVE THE INCOME TO 01:43:06.713 --> 01:43:08.448 SPEND MONEY IN THE STATE. SO I 01:43:08.515 --> 01:43:10.584 THINK WE HAVE TO BE VERY 01:43:10.651 --> 01:43:12.119 COGNIZANT OF HOW WE LOOK AT 01:43:12.185 --> 01:43:13.554 THIS. AND I THINK WE NEED TO 01:43:13.620 --> 01:43:16.023 LOOK AT IT FROM WHAT DOES A 01:43:16.089 --> 01:43:17.791 PRODUCTION IN CALIFORNIA BRING 01:43:17.858 --> 01:43:19.693 TO THE STATE, AS OPPOSED TO 01:43:19.760 --> 01:43:22.529 WHAT DOES A CAP COST? BECAUSE 01:43:22.596 --> 01:43:25.032 IT'S A FALSE ECONOMY, BECAUSE 01:43:25.098 --> 01:43:26.133 IT DOESN'T COST ANYTHING. IF 01:43:26.199 --> 01:43:27.801 THEY WEREN'T GOING TO BE HERE 01:43:27.868 --> 01:43:30.137 ANYWAY, 100% OF NOTHING IS 01:43:30.203 --> 01:43:32.973 STILL NOTHING. YEAH. DO YOU 01:43:33.040 --> 01:43:34.408 HAVE ANYONE ELSE THAT HAS A 01:43:34.474 --> 01:43:38.712 QUESTION? ASSEMBLYMEMBER'S. 01:43:38.779 --> 01:43:40.247 THANK YOU SO MUCH, CHAIR. THANK 01:43:40.314 --> 01:43:42.282 YOU TO ALL THE PANELISTS FOR 01:43:42.349 --> 01:43:44.418 YOUR INSIGHTS AND FOR SHARING 01:43:44.484 --> 01:43:48.455 YOUR STORIES. IT'S REALLY 01:43:48.522 --> 01:43:49.523 INCREDIBLY IMPORTANT. AND I 01:43:49.590 --> 01:43:52.092 KNOW THAT, YES, IT PROBABLY 01:43:52.159 --> 01:43:53.460 FEELS LIKE YOU'RE SPEAKING AND 01:43:53.527 --> 01:43:54.928 PREACHING TO THE CHOIR A LITTLE 01:43:54.995 --> 01:43:56.663 BIT BASED OFF OF WHO'S HERE, 01:43:56.730 --> 01:43:58.498 BUT I KNOW ASSEMBLY MEMBERS ARE 01:43:58.565 --> 01:44:00.701 ALSO HAS THIS LIVE STREAMED. SO 01:44:00.767 --> 01:44:02.369 THERE'S A LOT OF PEOPLE WHO ARE 01:44:02.436 --> 01:44:04.938 ALSO LISTENING AND WATCHING TO 01:44:05.005 --> 01:44:06.440 EVERYTHING THAT WE'RE TALKING 01:44:06.506 --> 01:44:08.976 ABOUT IN HOPES THAT HOPEFULLY 01:44:09.042 --> 01:44:10.477 IT PROVIDES, PROVIDES A LITTLE 01:44:10.544 --> 01:44:12.212 BIT MORE STABILITY INTO THE 01:44:12.279 --> 01:44:13.680 INDUSTRY, KNOWING THAT YOU HAVE 01:44:13.747 --> 01:44:16.149 A COALITION OF PEOPLE IN THIS 01:44:16.216 --> 01:44:17.951 ROOM WHO ARE WORKING TO TACKLE 01:44:18.018 --> 01:44:22.255 THESE ISSUES. ONE OF THE THINGS 01:44:22.322 --> 01:44:25.125 THAT I HAVE SEEN AND WANTED TO 01:44:25.192 --> 01:44:27.694 ECHO, I'M ALSO THE CHAIR OF THE 01:44:27.761 --> 01:44:29.863 SELECT COMMITTEE ON TRADE AND 01:44:29.930 --> 01:44:30.964 INVESTMENT, AND I'VE MET WITH A 01:44:31.031 --> 01:44:32.833 LOT OF COUNTRIES FROM ACROSS 01:44:32.899 --> 01:44:34.101 ASIA, A LOT OF PRODUCTIONS 01:44:34.167 --> 01:44:36.203 ACROSS ASIA AND HOLLYWOOD. AND 01:44:36.269 --> 01:44:38.105 OUR PRODUCTION IS A CONSISTENT 01:44:38.171 --> 01:44:40.340 TOPIC BECAUSE IT'S TRUE. THEY 01:44:40.407 --> 01:44:42.042 ARE TRYING TO TAKE OUR 01:44:42.109 --> 01:44:44.711 PRODUCTION. I'VE ALSO SPENT A 01:44:44.778 --> 01:44:47.481 LOT OF TIME WITH OTHER 01:44:47.547 --> 01:44:49.650 LEGISLATORS FROM ACROSS THE 01:44:49.716 --> 01:44:52.886 COUNTRY THIS PAST YEAR. AND LET 01:44:52.953 --> 01:44:54.988 ME TELL YOU, THEY TALK ABOUT 01:44:55.055 --> 01:44:57.658 CALIFORNIA ALL THE TIME. THEY 01:44:57.724 --> 01:44:59.726 TALK ABOUT HOW TO TAKE AWAY OUR 01:44:59.793 --> 01:45:00.694 COMPETITIVENESS, HOW TO TAKE 01:45:00.761 --> 01:45:02.929 AWAY OUR JOBS, HOW TO TAKE AWAY 01:45:02.996 --> 01:45:05.332 OUR INDUSTRY, HOW TO TAKE AWAY 01:45:05.399 --> 01:45:09.836 OUR EDGE. AND SO THAT WAS A 01:45:09.903 --> 01:45:12.039 WAKE UP CALL, DEFINITELY THIS 01:45:12.105 --> 01:45:13.807 PAST YEAR TO HEAR THESE WORDS 01:45:13.874 --> 01:45:15.909 COME OUT OF OTHER LEGISLATORS 01:45:15.976 --> 01:45:19.112 MOUTHS, THAT THIS IS AN ACTIVE 01:45:19.179 --> 01:45:21.314 EFFORT. AND SO I JUST WANTED TO 01:45:21.381 --> 01:45:23.483 EMPHASIZE THAT FOR FOLKS, 01:45:23.550 --> 01:45:25.652 BECAUSE I THINK FOR ME, LOOKING 01:45:25.719 --> 01:45:28.155 AHEAD TO 2027, I WOULD LOVE TO 01:45:28.221 --> 01:45:32.826 HEAR, YOU KNOW, FROM THE PANEL, 01:45:32.893 --> 01:45:34.227 YOUR EXPERIENCE WHEN 01:45:34.294 --> 01:45:36.096 PRODUCTIONS DO CHOOSE ANOTHER 01:45:36.163 --> 01:45:39.266 STATE OR COUNTRY, IF YOU CAN 01:45:39.332 --> 01:45:40.767 JUST MAYBE SHARE A LITTLE BIT 01:45:40.834 --> 01:45:43.303 MORE ABOUT WHAT OTHER FACTORS 01:45:43.370 --> 01:45:44.404 CONTRIBUTE TO THAT DECISION? IS 01:45:44.471 --> 01:45:48.341 IT PURELY ABOUT THE TAX 01:45:48.408 --> 01:45:50.944 INCENTIVE OR IS THERE MORE THAT 01:45:51.011 --> 01:45:52.846 WE CAN BE DOING? I KNOW THAT'S 01:45:52.913 --> 01:45:53.980 SOMETHING THAT'S ON OUR RADAR 01:45:54.047 --> 01:45:55.849 THAT WE'RE WORKING TO TACKLE 01:45:55.916 --> 01:45:57.317 AND OBVIOUSLY MAKE MORE 01:45:57.384 --> 01:45:58.852 COMPETITIVE. BUT, YOU KNOW, HOW 01:45:58.919 --> 01:46:00.854 DO WE LEVERAGE THE THINGS THAT 01:46:00.921 --> 01:46:03.390 ARE HERE IN CALIFORNIA, LIKE 01:46:03.457 --> 01:46:05.926 OUR WORKFORCE THAT IS A LOT 01:46:05.992 --> 01:46:09.162 HARDER TO STEAL AND TO BUILD 01:46:09.229 --> 01:46:10.597 AND OTHER PLACES, OTHER STATES 01:46:10.664 --> 01:46:12.766 AND OTHER COUNTRIES. SO IF YOU 01:46:12.833 --> 01:46:14.668 CAN ELABORATE A LITTLE BIT MORE 01:46:14.735 --> 01:46:16.069 ON THAT, I WOULD APPRECIATE IT. 01:46:16.136 --> 01:46:17.571 YEAH, WE'RE RUNNING A LITTLE 01:46:17.637 --> 01:46:18.739 BIT SHORT OF TIME. IS THERE 01:46:18.805 --> 01:46:23.243 SOMEONE THAT IS IT? YEAH. GREAT. 01:46:23.310 --> 01:46:24.511 THE WE ALL KNOW THE NUMBER ONE 01:46:24.578 --> 01:46:25.746 DRIVING FORCE OF WHY 01:46:25.812 --> 01:46:27.581 PRODUCTIONS GO WHERE THEY GO IS 01:46:27.647 --> 01:46:29.116 INCENTIVE BASED. SO THERE'S 01:46:29.182 --> 01:46:30.817 OTHER REASONS. OTHER IT'S 01:46:30.884 --> 01:46:32.252 CREATIVE, BUT IT'S VERY LIMITED 01:46:32.319 --> 01:46:34.755 IN THAT RESPECT. THE OTHER 01:46:34.821 --> 01:46:36.223 INCENTIVE PROGRAMS OUT THERE, 01:46:36.289 --> 01:46:37.958 GEORGIA, NEW YORK, NEW JERSEY, 01:46:38.024 --> 01:46:40.093 I KNOW WE'VE ALREADY MENTIONED 01:46:40.160 --> 01:46:41.995 UNCAPPING THE INCENTIVE PROGRAM 01:46:42.062 --> 01:46:43.764 HERE. GEORGIA HAS UNCAPPED. SO 01:46:43.830 --> 01:46:46.266 DOES NEW JERSEY. NEW YORK HAS 01:46:46.333 --> 01:46:47.367 800 MILLION, BUT THEY BORROW 01:46:47.434 --> 01:46:48.468 FROM THE FUTURE, WHICH IS WHY 01:46:48.535 --> 01:46:50.637 THEY HAVE MORE PRODUCTIONS NOW. 01:46:50.704 --> 01:46:52.072 AND ONE THING I THINK SHOULD BE 01:46:52.139 --> 01:46:53.640 POINTED OUT, ALL OF THOSE 01:46:53.707 --> 01:46:54.875 PROGRAMS INCLUDE ABOVE THE LINE, 01:46:54.941 --> 01:46:56.710 WHICH OURS DOES NOT. THAT'S 01:46:56.777 --> 01:46:58.779 ANOTHER DISADVANTAGE FOR US TO 01:46:58.845 --> 01:47:00.447 BE COMPETITIVE. MIKE, I ALREADY 01:47:00.514 --> 01:47:02.482 TOUCHED ON THE UNSCRIPTED 01:47:02.549 --> 01:47:03.884 PROGRAMS LIKE THE REALITY 01:47:03.950 --> 01:47:05.118 TELEVISION SERIES OR GAME SHOWS 01:47:05.185 --> 01:47:07.187 THAT HAVE LEFT ELSEWHERE. I 01:47:07.254 --> 01:47:08.588 KNOW WE MODERNIZE THE PROGRAM 01:47:08.655 --> 01:47:10.157 JUST LAST YEAR, BUT THERE'S 01:47:10.223 --> 01:47:12.025 STILL MORE WORK TO BE DONE ON 01:47:12.092 --> 01:47:14.694 THAT FRONT AS WELL. AND I THINK 01:47:14.761 --> 01:47:16.163 EVEN REBECCA ALREADY TOUCHED ON 01:47:16.229 --> 01:47:18.298 THE DIFFICULTIES OF APPLYING 01:47:18.365 --> 01:47:20.467 FOR THE CREDIT ITSELF, BECAUSE 01:47:20.534 --> 01:47:22.235 IT'S NOT UNCAPPED. THAT IS WHY 01:47:22.302 --> 01:47:23.370 THERE'S DIFFICULTY FOR 01:47:23.436 --> 01:47:25.505 PRODUCTIONS TO EVEN LOOK AT 01:47:25.572 --> 01:47:26.606 CALIFORNIA. SO THEY'RE NOT 01:47:26.673 --> 01:47:27.741 CALIFORNIA IS NOT NUMBER ONE IN 01:47:27.808 --> 01:47:29.609 TERMS OF BUDGETING. I THINK 01:47:29.676 --> 01:47:32.045 IT'S NOW 4 OR 5, AND THAT'S 01:47:32.112 --> 01:47:33.246 WHERE WE HAVE FALLEN. NOW, NEXT 01:47:33.313 --> 01:47:34.481 YEAR, WITH THE FEDERAL 01:47:34.548 --> 01:47:35.582 INCENTIVE, IT'S PROJECTED THAT 01:47:35.649 --> 01:47:37.117 WE WOULD BE MORE IN LINE WITH 01:47:37.184 --> 01:47:38.618 BEING THE THIRD MOST BUDGETED. 01:47:38.685 --> 01:47:40.086 BUT AT THE END OF THE DAY, 01:47:40.153 --> 01:47:41.955 WE'RE STILL NOT LEADING IN THAT 01:47:42.022 --> 01:47:42.923 FRONT EITHER. AND THAT'S 01:47:42.989 --> 01:47:44.090 BECAUSE OF THE ACTUAL PROGRAM 01:47:44.157 --> 01:47:45.325 ITSELF, NOT JUST THE FUNDING, 01:47:45.392 --> 01:47:47.294 BUT BOTH ARE TWO KEY COMPONENTS 01:47:47.360 --> 01:47:49.095 THAT WE NEED TO LOOK AT WHEN 01:47:49.162 --> 01:47:50.764 WE'RE TALKING ABOUT MODERNIZING 01:47:50.831 --> 01:47:52.566 OR CHANGING THE PROGRAM FOR 01:47:52.632 --> 01:47:56.102 2027. THANK YOU. JUST JUST 01:47:56.169 --> 01:47:57.237 UNDERSCORING SOMETHING SHE JUST 01:47:57.304 --> 01:47:58.371 SAID, STREAMLINING THE PROCESS 01:47:58.438 --> 01:48:00.240 SO THAT YOU CAN PLAN WELL IN 01:48:00.307 --> 01:48:01.675 ADVANCE. THE REALITY IS, RIGHT 01:48:01.741 --> 01:48:02.943 NOW, EVERYBODY HAS TO WAIT 01:48:03.009 --> 01:48:05.111 UNTIL THEY WE KNOW WHEN WE WANT 01:48:05.178 --> 01:48:06.780 TO SHOOT, BUT WE'RE GOING TO 01:48:06.847 --> 01:48:08.815 WAIT TO SEE IF WE GET THE TAX 01:48:08.882 --> 01:48:10.150 INCENTIVE. AND THAT'S A PROBLEM 01:48:10.217 --> 01:48:11.318 BECAUSE THE NUMBER ONE THING IN 01:48:11.384 --> 01:48:12.886 BUSINESS, YOU KNOW, IF YOU KNOW 01:48:12.953 --> 01:48:14.788 YOU CAN HAVE A BAD YEAR, YOU 01:48:14.855 --> 01:48:16.022 JUST NEED TO KNOW YOU'RE GOING 01:48:16.089 --> 01:48:17.824 TO HAVE A BAD YEAR, KNOWING 01:48:17.891 --> 01:48:18.892 WHAT TO EXPECT, KNOWING WHEN 01:48:18.959 --> 01:48:20.060 YOU'LL HAVE A FIRM ANSWER SO 01:48:20.126 --> 01:48:21.828 YOU CAN ACTUALLY PULL THE 01:48:21.895 --> 01:48:22.996 TRIGGER EARLY ON IS A MASSIVE 01:48:23.063 --> 01:48:24.164 PROBLEM FOR PRODUCERS RIGHT NOW 01:48:24.231 --> 01:48:25.966 THAT THEY HAVE TO WAIT AND THEN, 01:48:26.032 --> 01:48:27.200 YOU KNOW, THERE'S SEVERAL TAKES 01:48:27.267 --> 01:48:29.002 ON IT. BUT IF WE'RE UNCAPPED, 01:48:29.069 --> 01:48:30.070 YOU WOULD KNOW THAT YOU COULD 01:48:30.136 --> 01:48:31.872 YOU MIGHT EVEN BE ABLE TO 01:48:31.938 --> 01:48:33.106 GAMBLE. AS I WAS TALKING ABOUT 01:48:33.173 --> 01:48:34.808 THE PRODUCTIONS THAT I'M AWARE 01:48:34.875 --> 01:48:36.009 OF, YOU MIGHT WAIT FOR A LATER 01:48:36.076 --> 01:48:37.978 SHOT AT THE LOTTERY IF YOU KNEW 01:48:38.044 --> 01:48:39.079 THAT THERE WAS STILL MONEY 01:48:39.145 --> 01:48:40.981 THERE. BUT WE RUN OUT OF MONEY 01:48:41.047 --> 01:48:42.148 SO EARLY. SO THE SCHEDULING 01:48:42.215 --> 01:48:43.817 PIECE, YOU'VE GOT TO STREAMLINE 01:48:43.884 --> 01:48:44.784 THE PROCESS BETTER FOR 01:48:44.851 --> 01:48:45.886 PRODUCERS. IT'S SIMILAR TO LIKE 01:48:45.952 --> 01:48:47.587 WHAT A, YOU KNOW, YOU KNOW, 01:48:47.654 --> 01:48:48.955 MAKING IT EASIER TO GET PERMITS 01:48:49.022 --> 01:48:50.490 IN TOWN. THAT'S, THAT'S A LOW 01:48:50.557 --> 01:48:51.892 HANGING FRUIT THING THAT 01:48:51.958 --> 01:48:52.959 ACTUALLY MADE A LOT OF 01:48:53.026 --> 01:48:54.027 DIFFERENCE FOR A LOT OF 01:48:54.094 --> 01:48:55.528 INDEPENDENT PRODUCERS. THEY'RE 01:48:55.595 --> 01:48:56.496 LIKE, OH, I ACTUALLY CAN SHOOT 01:48:56.563 --> 01:48:58.231 IN THIS TOWN BECAUSE I'M NOT 01:48:58.298 --> 01:49:00.200 JUST JUMPING OUT OF A CAR AND 01:49:00.267 --> 01:49:01.368 RUNNING OUT ON THE STREET AND 01:49:01.434 --> 01:49:02.469 SHOOTING. IT'S EASY TO ACTUALLY 01:49:02.535 --> 01:49:04.170 BE LEGAL WHILE YOU'RE SHOOTING 01:49:04.237 --> 01:49:05.972 ON THE STREET. THOSE THINGS 01:49:06.039 --> 01:49:06.740 STREAMLINE THE PROCESS. 01:49:06.806 --> 01:49:07.741 PRODUCERS ALSO MAKES A 01:49:07.807 --> 01:49:08.875 DIFFERENCE. BUT REALLY, THAT 01:49:08.942 --> 01:49:09.743 SCHEDULING PIECE IS ONE OF THE 01:49:09.809 --> 01:49:12.045 BIG THINGS I THINK OF. YEAH, 01:49:12.112 --> 01:49:13.914 YEAH. I JUST WANT TO ADD ONE 01:49:13.980 --> 01:49:15.815 THING. I GOT A CALL FROM A 01:49:15.882 --> 01:49:16.950 PRODUCER THE OTHER DAY, AND 01:49:17.017 --> 01:49:18.852 THEY'RE DOING A SHOW THAT IS 01:49:18.919 --> 01:49:22.555 SET IN BIG SUR IN AUSTRALIA. SO 01:49:22.622 --> 01:49:24.291 AS BEAUTIFUL AS CALIFORNIA IS, 01:49:24.357 --> 01:49:26.192 AND I'M A CALIFORNIA NATIVE, IT 01:49:26.259 --> 01:49:31.164 IS ALL ABOUT THE MONEY. YEAH. 01:49:31.231 --> 01:49:33.700 AND YOU KNOW, WITH THE ONE OF 01:49:33.767 --> 01:49:35.068 THE BENEFITS OF OUR PROGRAM IS 01:49:35.135 --> 01:49:36.636 THAT WE HAVE THESE JOB 01:49:36.703 --> 01:49:38.038 STANDARDS. BUT IF WE UNCAPPED 01:49:38.104 --> 01:49:39.406 IT, YOU COULD HAVE THE 01:49:39.472 --> 01:49:40.640 STANDARDS IN PLACE AND THEN 01:49:40.707 --> 01:49:41.908 JUST BASICALLY NOT HAVE TO GO 01:49:41.975 --> 01:49:43.009 THROUGH THE APPLICATION PROCESS. 01:49:43.076 --> 01:49:44.477 SO THOSE WOULD BE THE LAST 01:49:44.544 --> 01:49:45.979 RESPONSE. YEAH. JUST TO WHAT 01:49:46.046 --> 01:49:47.347 YOU HAD ASKED EARLIER, MR. 01:49:47.414 --> 01:49:49.149 GIBSON, ABOUT THE HAS SOMEBODY 01:49:49.215 --> 01:49:50.917 ELSE DONE THE PROCEDURE OF 01:49:50.984 --> 01:49:51.751 UNCAPPING AND WHAT DID THAT 01:49:51.818 --> 01:49:53.420 LOOK LIKE? AND THAT FELT WAY 01:49:53.486 --> 01:49:56.323 ABOVE MY MATHEMATICAL BRAIN, 01:49:56.389 --> 01:49:57.057 ESPECIALLY AS A MOM RIGHT NOW. 01:49:57.123 --> 01:49:59.259 BUT I DO LOOK AT LIFE VERY MUCH 01:49:59.326 --> 01:50:01.394 SO IN THE REALM OF MOTHERHOOD 01:50:01.461 --> 01:50:03.163 AND PARENTHOOD. AND ONE THING 01:50:03.229 --> 01:50:04.364 THAT I THINK MY PARENTS DID 01:50:04.431 --> 01:50:05.765 THAT IS TOTALLY CHANGED THE 01:50:05.832 --> 01:50:07.167 TRAJECTORY OF ME AND MY 01:50:07.233 --> 01:50:08.268 SIBLINGS WAS WE CAME FROM A 01:50:08.335 --> 01:50:10.770 VERY LOW INCOME FAMILY, QUITE 01:50:10.837 --> 01:50:12.205 LITERALLY ECONOMICALLY 01:50:12.272 --> 01:50:13.974 CHALLENGED IN CHICAGO, IN THE 01:50:14.040 --> 01:50:15.775 HOOD OF CHICAGO. AND MY PARENTS 01:50:15.842 --> 01:50:16.977 SAID, WELL, I'M GOING TO INVEST 01:50:17.043 --> 01:50:18.845 IN THE THREE OF YOU. AND THEY 01:50:18.912 --> 01:50:20.780 HAD NO MONEY TO INVEST IN US. 01:50:20.847 --> 01:50:21.948 BUT LIKE NEW YORK CITY, THEY 01:50:22.015 --> 01:50:23.049 BORROWED FROM THE FUTURE. AND 01:50:23.116 --> 01:50:24.884 THEY PUT MYSELF IN NYU AND MY 01:50:24.951 --> 01:50:26.086 SISTER IN HARVARD, MY OTHER 01:50:26.152 --> 01:50:27.787 SISTER IN THE UNIVERSITY OF 01:50:27.854 --> 01:50:29.489 MEDICINE IN CHICAGO, MY ELDER 01:50:29.556 --> 01:50:30.824 SISTER RUNS ONE OF THE BIGGEST 01:50:30.890 --> 01:50:31.958 PRIVATE EQUITY FIRMS. MY MIDDLE 01:50:32.025 --> 01:50:33.860 SISTER IS A DOCTOR, AND I GET 01:50:33.927 --> 01:50:35.028 TO STAND HERE AND DO WHAT I 01:50:35.095 --> 01:50:36.863 LOVE EVERY DAY BECAUSE THEY 01:50:36.930 --> 01:50:38.164 INVESTED IN THOSE THAT THEY 01:50:38.231 --> 01:50:40.333 LOVED AND THEY BELIEVED IN. AND 01:50:40.400 --> 01:50:42.736 IT WORKED. AND IT WORKED 01:50:42.802 --> 01:50:43.603 BECAUSE THE THREE OF US ARE 01:50:43.670 --> 01:50:45.438 MORE SUCCESSFUL THAN WE'VE EVER 01:50:45.505 --> 01:50:46.473 COULD HAVE IMAGINED FROM OUR 01:50:46.539 --> 01:50:47.574 CHILDHOOD. AND NOBODY CAN EVER 01:50:47.640 --> 01:50:49.409 BELIEVE THAT THE THREE OF US 01:50:49.476 --> 01:50:50.677 HAVE DONE IT. BUT THEY BORROWED 01:50:50.744 --> 01:50:51.745 FROM THE FUTURE. THEY DIDN'T 01:50:51.811 --> 01:50:53.480 HAVE IT. THEY BELIEVED IN US. 01:50:53.546 --> 01:50:55.415 SO I THINK THAT'S WHAT YOU GUYS 01:50:55.482 --> 01:50:56.549 SHOULD DO WITH US. MAYBE WE 01:50:56.616 --> 01:50:58.418 DON'T HAVE IT, BUT BELIEVE IN 01:50:58.485 --> 01:50:59.519 US BECAUSE WE'RE GOING TO SHOW 01:50:59.586 --> 01:51:00.787 YOU HOW ECONOMICALLY STRONG WE 01:51:00.854 --> 01:51:02.589 ARE AND HOW MUCH WE SHOULD BE 01:51:02.655 --> 01:51:03.490 TRUSTED WITH THESE 01:51:03.556 --> 01:51:04.491 OPPORTUNITIES WHEN YOU GIVE 01:51:04.557 --> 01:51:06.393 THEM TO US. SO YEAH, JUST GIVE 01:51:06.459 --> 01:51:07.694 THEM TO US. WATCH LIKE ME AND 01:51:07.761 --> 01:51:09.396 MY SISTERS. WATCH WHAT WE'LL 01:51:09.462 --> 01:51:10.630 MAKE WHAT HAPPEN, OKAY? WE'RE 01:51:10.697 --> 01:51:12.532 GOING TO HAVE WE'RE GOING TO GO 01:51:12.599 --> 01:51:13.533 ONE LAST QUESTION FOR 01:51:13.600 --> 01:51:14.100 ASSEMBLYMEMBERS SCHULTZ AND 01:51:14.167 --> 01:51:15.635 THEN WE'RE GOING TO MOVE TO THE 01:51:15.702 --> 01:51:17.504 NEXT PANEL. THANK YOU VERY MUCH, 01:51:17.570 --> 01:51:18.705 MR. CHAIR. THANK YOU TO ALL THE 01:51:18.772 --> 01:51:20.206 PANELISTS. VERY INFORMATIVE. 01:51:20.273 --> 01:51:21.641 LOVE. SO MUCH OF WHAT I HEARD 01:51:21.708 --> 01:51:22.776 FROM UNCAPPING THE PROGRAM TO 01:51:22.842 --> 01:51:24.511 LOOKING AT SOME OF THE OTHER 01:51:24.577 --> 01:51:25.645 REGULATORY IMPEDIMENTS. I GUESS 01:51:25.712 --> 01:51:28.181 MY QUESTION IS FOR MISS RYAN IN 01:51:28.248 --> 01:51:29.349 YOUR TESTIMONY, WHAT I THOUGHT 01:51:29.416 --> 01:51:30.884 I HEARD, AND I JUST WANTED TO 01:51:30.950 --> 01:51:32.819 MAKE SURE GIVE YOU A CHANCE TO 01:51:32.886 --> 01:51:33.920 ELABORATE. IT SOUNDS LIKE WHAT 01:51:33.987 --> 01:51:35.088 YOU WERE SAYING WAS THE BETTER 01:51:35.155 --> 01:51:36.923 APPROACH IS TO HAVE A MORE 01:51:36.990 --> 01:51:38.091 HOLISTIC VIEW OF PRODUCTION, AS 01:51:38.158 --> 01:51:39.859 OPPOSED TO SEGMENTING DIFFERENT 01:51:39.926 --> 01:51:41.261 PARTS OF IT. IS THAT ACCURATE? 01:51:41.327 --> 01:51:42.896 I THINK THAT'S RIGHT. I THINK 01:51:42.962 --> 01:51:46.166 OUR INTENT ALWAYS WAS TO HAVE 01:51:46.232 --> 01:51:48.668 AN INCENTIVE THAT THAT KEPT ALL 01:51:48.735 --> 01:51:50.437 OF PRODUCTION IN CALIFORNIA 01:51:50.503 --> 01:51:53.006 FROM SOUP TO NUTS. AND, YOU 01:51:53.073 --> 01:51:55.475 KNOW, OBVIOUSLY THERE ARE 01:51:55.542 --> 01:51:57.310 DIFFERENT APPROACHES TO DOING 01:51:57.377 --> 01:51:58.778 THAT AND WE SHOULD TALK ABOUT 01:51:58.845 --> 01:52:01.614 THEM, BUT WE DON'T WE DON'T WE 01:52:01.681 --> 01:52:03.383 DON'T WANT TO BECOME SORT OF 01:52:03.450 --> 01:52:07.420 THE, THE CAPITAL OF X OR Y. WE 01:52:07.487 --> 01:52:09.589 WANT TO BE THE CAPITAL OF THESE 01:52:09.656 --> 01:52:11.357 FILMS OF THIS INDUSTRY. AND 01:52:11.424 --> 01:52:12.959 WHEN YOU WANT TO BRING BIG 01:52:13.026 --> 01:52:14.928 BUDGET FILMS BACK, YOU HAVE TO 01:52:14.994 --> 01:52:16.763 HAVE A PROGRAM THAT CAN 01:52:16.830 --> 01:52:18.932 ENCOMPASS SOMETHING OF THAT 01:52:18.998 --> 01:52:21.367 SIZE AND SCOPE. YEAH, I REALLY 01:52:21.434 --> 01:52:22.502 APPRECIATE YOUR COMMENTS AND I 01:52:22.569 --> 01:52:24.304 AGREE WITH YOU. I THINK THAT 01:52:24.370 --> 01:52:25.772 THAT INTENT HAS YET TO BE 01:52:25.839 --> 01:52:26.840 REALIZED, BUT IT'S SOMETHING 01:52:26.906 --> 01:52:27.974 WE'RE ALL MOVING TOWARDS. AND I 01:52:28.041 --> 01:52:29.809 AGREE, I THINK WE SHOULD HAVE A 01:52:29.876 --> 01:52:31.144 PROGRAM THAT INCENTIVIZES AND 01:52:31.211 --> 01:52:32.178 LOOKS AT PRE-PRODUCTION, 01:52:32.245 --> 01:52:33.213 PRODUCTION, POST-PRODUCTION, 01:52:33.279 --> 01:52:34.714 AND EVERYTHING IN BETWEEN, 01:52:34.781 --> 01:52:36.116 BECAUSE WE CAN'T HAVE A PROGRAM 01:52:36.182 --> 01:52:37.217 THAT PICKS WINNERS AND LOSERS 01:52:37.283 --> 01:52:39.119 AS RESPECTFULLY IT HAS BEEN. SO 01:52:39.185 --> 01:52:41.588 WE HAVE TO DO BETTER. TOTALLY, 01:52:41.654 --> 01:52:46.626 TOTALLY AGREE. I SURE DO. REST 01:52:46.693 --> 01:52:48.394 IN POWER, DOLORES HUERTA. YES. 01:52:48.461 --> 01:52:50.697 YES, YES. SO I WANT TO THANK 01:52:50.763 --> 01:52:52.532 THE MEMBERS OF THE FIRST PANEL. 01:52:52.599 --> 01:52:53.666 THANK YOU FOR TAKING TIME OUT 01:52:53.733 --> 01:52:55.668 OF YOUR BUSY DAYS TO BE WITH US 01:52:55.735 --> 01:52:57.770 TODAY. PLEASE. WE'RE VERY 01:52:57.837 --> 01:52:58.538 APPRECIATIVE, AND WE'RE GOING 01:52:58.605 --> 01:53:00.240 TO HAVE SOME ADDITIONAL. I KNOW 01:53:00.306 --> 01:53:02.475 WE HAVE MEMBERS OF THE OF THE 01:53:02.542 --> 01:53:03.576 DAIS HAVE ADDITIONAL QUESTIONS 01:53:03.643 --> 01:53:04.711 ABOUT THE FILM TAX CREDIT. 01:53:04.777 --> 01:53:05.745 WE'RE GOING TO HAVE SOME 01:53:05.812 --> 01:53:06.880 ADDITIONAL OPPORTUNITY FOR THEM 01:53:06.946 --> 01:53:08.748 TO ASK THOSE QUESTIONS WITH THE 01:53:08.815 --> 01:53:09.849 NEXT PANEL. SO I'D LIKE TO 01:53:09.916 --> 01:53:16.556 INVITE UP PANEL NUMBER TWO. 01:53:16.623 --> 01:53:22.662 THANK YOU EVERYONE. COME BACK 01:53:22.729 --> 01:53:31.704 AND COME BACK. I BELIEVE I DO. 01:53:31.771 --> 01:53:36.876 I DO. YOU'RE DOING. I GET IT, 01:53:36.943 --> 01:53:44.017 BUT. OH MY GOD OH MY GOD. YOU 01:53:44.083 --> 01:53:46.486 KNOW WHAT I'M SAYING RIGHT? 01:53:46.553 --> 01:53:51.057 IT'S TOUGH. UP HERE RIGHT? 01:53:51.124 --> 01:53:52.692 BECAUSE LOOK HOW MUCH MONEY YOU 01:53:52.759 --> 01:53:55.795 HAVE IN HERE. THAT'S RIGHT. 01:53:55.862 --> 01:54:02.335 30,000. AND YOU. RIGHT. IT'S 01:54:02.402 --> 01:54:18.384 LIKE 200,000. WELCOME. OH. ALEX. 01:54:18.451 --> 01:54:30.964 HEY. OKAY. OKAY. NOW, I'D LIKE 01:54:31.030 --> 01:54:33.132 TO WELCOME AND INTRODUCE OUR 01:54:33.199 --> 01:54:36.035 NEXT SET OF PANELISTS ON THE 01:54:36.102 --> 01:54:37.470 PANEL ENTITLED PROTECTING AND 01:54:37.537 --> 01:54:38.538 GROWING JOBS THROUGH THE 01:54:38.605 --> 01:54:39.706 CALIFORNIA'S FILM AND 01:54:39.772 --> 01:54:41.908 TELEVISION TAX CREDIT PROGRAM. 01:54:41.975 --> 01:54:44.010 JOIN ME IN WELCOMING KERRY WOOD 01:54:44.077 --> 01:54:45.144 PETERSON, WHO'S EXECUTIVE 01:54:45.211 --> 01:54:46.112 DIRECTOR OF GOVERNMENT AFFAIRS 01:54:46.179 --> 01:54:47.580 AND PUBLIC POLICY WITH THE 01:54:47.647 --> 01:54:49.015 SCREEN ACTORS GUILD, AMERICAN 01:54:49.082 --> 01:54:50.116 FEDERATION OF TELEVISION AND 01:54:50.183 --> 01:54:51.284 RADIO ARTISTS, OTHERWISE KNOWN 01:54:51.351 --> 01:54:54.120 AS SAG-AFTRA. ALEX AGUILAR, 01:54:54.187 --> 01:54:55.822 BUSINESS MANAGER AND SECRETARY 01:54:55.888 --> 01:54:57.657 TREASURER WITH LABORERS LOCAL 01:54:57.724 --> 01:54:59.225 724 REPRESENTING UTILITY 01:54:59.292 --> 01:55:00.526 WORKERS IN THE MOTION PICTURE 01:55:00.593 --> 01:55:02.695 INDUSTRY. WELCOME, ALEX. BETSY 01:55:02.762 --> 01:55:04.530 BEERS, THE ACCLAIMED SHONDA 01:55:04.597 --> 01:55:05.932 LAND EXECUTIVE PRODUCER AND 01:55:05.999 --> 01:55:07.367 CREATIVE PARTNER. WELCOME, 01:55:07.433 --> 01:55:09.969 BETSY. MARIELA ABAUNZA, 01:55:10.036 --> 01:55:11.371 PRESIDENT OF THE CALIFORNIA 01:55:11.437 --> 01:55:12.572 COAST ALLIANCE AND EXECUTIVE 01:55:12.639 --> 01:55:14.207 VICE PRESIDENT OF BUSINESS 01:55:14.274 --> 01:55:16.409 DEVELOPMENT. WELCOME. AND 01:55:16.476 --> 01:55:19.312 FINALLY, ARLEN VALDIVIA, VICE 01:55:19.379 --> 01:55:20.380 PRESIDENT OF STATE GOVERNMENT 01:55:20.446 --> 01:55:21.381 AFFAIRS WITH THE MOTION 01:55:21.447 --> 01:55:22.482 PICTURES ASSOCIATION, AN 01:55:22.548 --> 01:55:23.616 ORGANIZATION REPRESENTING 01:55:23.683 --> 01:55:25.451 STUDIOS INCLUDING DISNEY, 01:55:25.518 --> 01:55:27.253 NETFLIX, PARAMOUNT PRIME, 01:55:27.320 --> 01:55:29.389 AMAZON, MGM, SONY, UNIVERSAL, 01:55:29.455 --> 01:55:31.491 AND WARNER BROS. WELCOME, ARLEN. 01:55:31.557 --> 01:55:34.360 SO I'D NOW LIKE TO START WITH 01:55:34.427 --> 01:55:37.263 KERRY. THANK YOU SO MUCH. GOOD 01:55:37.330 --> 01:55:38.731 AFTERNOON, KERRY WOOD, 01:55:38.798 --> 01:55:40.566 SAG-AFTRA. WE REPRESENT 01:55:40.633 --> 01:55:42.669 APPROXIMATELY 160,000 MEMBERS 01:55:42.735 --> 01:55:43.736 NATIONWIDE, THE MAJORITY OF 01:55:43.803 --> 01:55:45.538 WHICH RESIDE RIGHT HERE IN 01:55:45.605 --> 01:55:46.973 CALIFORNIA. THANK YOU TO 01:55:47.040 --> 01:55:49.175 ASSEMBLY MEMBERS OF BIR FOR 01:55:49.242 --> 01:55:52.045 MAKING INVITING OUR UNION TO BE 01:55:52.111 --> 01:55:53.413 INVOLVED IN TODAY'S DISCUSSIONS. 01:55:53.479 --> 01:55:55.248 WE ALL KNOW HOW VALUABLE THE 01:55:55.315 --> 01:55:56.649 FILM AND TV INDUSTRY IS TO 01:55:56.716 --> 01:55:57.750 CALIFORNIA ECONOMY, AND WE KNOW 01:55:57.817 --> 01:55:58.851 HOW DEVASTATING IT'S BEEN FOR 01:55:58.918 --> 01:56:00.987 THE LABOR FORCE, OUR BUSINESSES, 01:56:01.054 --> 01:56:03.189 AND OUR INFRASTRUCTURE. IN 01:56:03.256 --> 01:56:04.757 RECENT YEARS. I FIRST WANT TO 01:56:04.824 --> 01:56:06.292 JUST SAY THAT THE INCENTIVE 01:56:06.359 --> 01:56:07.894 PROGRAM IS WORKING. I THINK 01:56:07.960 --> 01:56:09.595 IT'S SO MUCH OF THIS HAS 01:56:09.662 --> 01:56:11.097 ALREADY BEEN SAID, BUT THE 01:56:11.164 --> 01:56:12.932 PROJECTS ARE GETTING MADE HERE, 01:56:12.999 --> 01:56:14.334 AND THAT'S GREAT. BUT 01:56:14.400 --> 01:56:15.435 UNFORTUNATELY, THE RATE OF THAT 01:56:15.501 --> 01:56:16.569 INCREASE IS NOT WHAT IT COULD 01:56:16.636 --> 01:56:19.138 BE. WITH SOME ADJUSTMENTS, WE 01:56:19.205 --> 01:56:20.440 CAN MAKE OUR STATE MORE 01:56:20.506 --> 01:56:21.274 COMPETITIVE THAN ANYWHERE IN 01:56:21.341 --> 01:56:24.043 THE WORLD. IN PARTICULAR, 01:56:24.110 --> 01:56:25.511 CALIFORNIA NEEDS TO MAKE ITSELF 01:56:25.578 --> 01:56:27.280 AN ATTRACTIVE PLACE TO SHOOT 01:56:27.347 --> 01:56:29.816 EPISODIC TV AND STREAMING SHOWS. 01:56:29.882 --> 01:56:31.217 THAT'S WHERE WORKERS CAN BUILD 01:56:31.284 --> 01:56:32.352 SUSTAINABLE, LONG TERM 01:56:32.418 --> 01:56:33.419 EMPLOYMENT, AND WHERE LOCAL 01:56:33.486 --> 01:56:35.254 BUSINESSES CAN ENJOY RELIABLE 01:56:35.321 --> 01:56:36.656 REVENUE FROM THOSE SHOWS, THEIR 01:56:36.723 --> 01:56:38.291 CAST AND THEIR CREWS WHO SPEND 01:56:38.358 --> 01:56:40.259 THEIR MONEY LOCALLY. ONE BIG 01:56:40.326 --> 01:56:41.994 THING I THINK WE NEED TO DO TO 01:56:42.061 --> 01:56:43.196 THE PROGRAM IS INCLUDE ABOVE 01:56:43.262 --> 01:56:45.631 THE LINE COSTS. THAT'S WAGES 01:56:45.698 --> 01:56:47.066 FOR ACTORS, DIRECTORS AND 01:56:47.133 --> 01:56:49.635 WRITERS IN OUR TAX CREDIT 01:56:49.702 --> 01:56:51.371 PROGRAM. AND THIS COULD HAVE A 01:56:51.437 --> 01:56:54.374 PROFOUND IMPACT ON THE SUCCESS 01:56:54.440 --> 01:56:56.843 OF THE PROGRAM IN NEW YORK. 01:56:56.909 --> 01:56:58.311 ABOVE THE LINE EXPENSES ARE 01:56:58.378 --> 01:56:59.712 INCLUDED. EPISODIC SPENDING 01:56:59.779 --> 01:57:01.647 GREW A WHOPPING 108% DURING THE 01:57:01.714 --> 01:57:04.384 MOST RECENT QUARTER. CALIFORNIA 01:57:04.450 --> 01:57:06.919 PALES IN COMPARISON. WE SAW 01:57:06.986 --> 01:57:08.020 EPISODIC SPENDING INCREASE BY 01:57:08.087 --> 01:57:11.624 ONLY 8% IN THAT SAME QUARTER. I 01:57:11.691 --> 01:57:13.259 ALSO THINK WE HAVE TO DO A LOT 01:57:13.326 --> 01:57:14.427 OF EDUCATION AROUND THIS TOPIC. 01:57:14.494 --> 01:57:17.363 I THINK WE CAN START BY 01:57:17.430 --> 01:57:18.431 AVOIDING USING THE TERMS ABOVE 01:57:18.498 --> 01:57:20.166 AND BELOW THE LINE, FRANKLY. 01:57:20.233 --> 01:57:22.034 THOSE ARE CONFUSING TO PEOPLE. 01:57:22.101 --> 01:57:23.469 THOSE ARE ACCOUNTING TERMS AND 01:57:23.536 --> 01:57:25.104 THERE REALLY IS NO LINE. IT 01:57:25.171 --> 01:57:27.740 MEANS CAST AND CREW. REALLY. 01:57:27.807 --> 01:57:29.075 MOST OF OUR SAG-AFTRA MEMBERS 01:57:29.142 --> 01:57:30.309 ARE CONSIDERED ABOVE THE LINE, 01:57:30.376 --> 01:57:32.011 WHETHER THEY HAVE 1 OR 2 LINES 01:57:32.078 --> 01:57:33.913 OR THEY'RE AT THE TOP OF THE 01:57:33.980 --> 01:57:35.081 CALL SHEET, WHICH IS VERY FEW. 01:57:35.148 --> 01:57:36.916 WHEN YOU LOOK AT THE WHOLE 01:57:36.983 --> 01:57:38.050 PICTURE, THIS IS NOT A VERY 01:57:38.117 --> 01:57:40.019 DAUNTING THING TO DO. MOST OF 01:57:40.086 --> 01:57:41.454 OUR MEMBERS DON'T WORK THE 01:57:41.521 --> 01:57:42.922 ENTIRE PRODUCTIONS LIKE THE 01:57:42.989 --> 01:57:46.459 CREW DOES. SO BY AND LARGE, IT 01:57:46.526 --> 01:57:48.294 COULD GREATLY BENEFIT THE 01:57:48.361 --> 01:57:50.797 RETURNS OF THE PROGRAM. TO THE 01:57:50.863 --> 01:57:54.100 STATE. CALIFORNIA IS CURRENTLY 01:57:54.167 --> 01:57:55.535 THE ONLY US STATE THAT DOES NOT 01:57:55.601 --> 01:57:57.270 INCLUDE THESE COSTS AS THESE 01:57:57.336 --> 01:57:58.805 COSTS AS QUALIFIED EXPENSES IN 01:57:58.871 --> 01:58:00.873 THE PROGRAM. AND WE NEED TO 01:58:00.940 --> 01:58:01.841 CORRECT THAT, NEVER MIND 01:58:01.908 --> 01:58:02.842 FOREIGN COUNTRIES WHICH. WHICH 01:58:02.909 --> 01:58:06.679 ALL DO. THE NEXT THING I WILL 01:58:06.746 --> 01:58:08.614 SAY THAT I KNOW HAS BEEN SAID 01:58:08.681 --> 01:58:09.615 IS UNCAPPING. THE INCENTIVE 01:58:09.682 --> 01:58:11.384 WOULD BE A HUGE BOON TO THE 01:58:11.451 --> 01:58:14.253 PROGRAM. I JUST WANT TO GIVE AN 01:58:14.320 --> 01:58:16.355 EXAMPLE OF GEORGIA. THEY 01:58:16.422 --> 01:58:17.857 RECENTLY NABBED AN UPCOMING 01:58:17.924 --> 01:58:19.292 SUPERMAN SEQUEL, WHICH IS A 01:58:19.358 --> 01:58:21.160 WARNER BROTHERS PRODUCTION AND 01:58:21.227 --> 01:58:22.462 THEN A DAYTIME DRAMA, BEYOND 01:58:22.528 --> 01:58:25.765 THE GATES, HUNDREDS OF JOBS AND 01:58:25.832 --> 01:58:29.302 400 EPISODES OVER THE PAST 01:58:29.368 --> 01:58:31.904 THREE YEARS. SO IN CLOSING, I 01:58:31.971 --> 01:58:34.040 THINK, AS IT'S BEEN SAID, 01:58:34.106 --> 01:58:34.774 CALIFORNIA HAS THE BEST 01:58:34.841 --> 01:58:35.808 CREATIVE WORKFORCE IN THE WORLD, 01:58:35.875 --> 01:58:37.376 THE BEST LOCATIONS, THE BEST 01:58:37.443 --> 01:58:38.511 VENDORS. WE SHOULD DO WHATEVER 01:58:38.578 --> 01:58:40.146 IT TAKES TO KEEP OUR RESIDENTS 01:58:40.213 --> 01:58:41.280 EMPLOYED AND OUR INDUSTRY 01:58:41.347 --> 01:58:43.049 THRIVING. AND I THINK THOSE TWO 01:58:43.115 --> 01:58:44.851 CRITICAL CHANGES COULD REALLY 01:58:44.917 --> 01:58:46.552 MAKE THAT HAPPEN. THANK YOU. 01:58:46.619 --> 01:58:49.922 THANK YOU. KERRY. NEXT, I'D 01:58:49.989 --> 01:58:52.091 LIKE TO RECOGNIZE ALEX AGUILAR. 01:58:52.158 --> 01:58:53.593 WELCOME, ALEX. THANK YOU, THANK 01:58:53.659 --> 01:58:55.261 YOU. WELL, YOU GUYS KNOW ME. 01:58:55.328 --> 01:58:56.729 ALEX AGUILAR I APPRECIATE YOU 01:58:56.796 --> 01:58:58.798 GUYS HAVING THIS. THIS IS VERY 01:58:58.865 --> 01:59:01.367 IMPORTANT TO ALL OF US SITTING 01:59:01.434 --> 01:59:03.436 HERE TODAY. AND SO I HAVE SOME 01:59:03.503 --> 01:59:04.971 REMARKS I WANT TO READ AND A 01:59:05.037 --> 01:59:08.274 COUPLE OF COMMENTS. SO GOOD 01:59:08.341 --> 01:59:09.642 MORNING. ASSEMBLY MEMBERS OF 01:59:09.709 --> 01:59:11.110 BIRD, MEMBERS OF OF THE 01:59:11.177 --> 01:59:12.912 COMMITTEE, THANK YOU FOR THE 01:59:12.979 --> 01:59:13.980 OPPORTUNITY TO DISCUSS 01:59:14.046 --> 01:59:15.448 PROTECTING AND GROWING FILM AND 01:59:15.515 --> 01:59:16.916 TELEVISION JOBS HERE IN 01:59:16.983 --> 01:59:18.684 CALIFORNIA. I'M ALEX AGUILAR, 01:59:18.751 --> 01:59:19.819 BUSINESS MANAGER, SECRETARY 01:59:19.886 --> 01:59:23.022 TREASURER OF LIUNA LOCAL 724, 01:59:23.089 --> 01:59:24.190 BETTER KNOWN AS THE HOLLYWOOD 01:59:24.257 --> 01:59:25.057 LABORERS, BECAUSE WE DON'T 01:59:25.124 --> 01:59:26.192 REALLY DO A LOT OF THE 01:59:26.259 --> 01:59:27.226 CONSTRUCTION STUFF THAT THE 01:59:27.293 --> 01:59:29.128 REST OF OUR BROTHERS AND 01:59:29.195 --> 01:59:31.230 SISTERS DO. WE REPRESENT 01:59:31.297 --> 01:59:33.799 APPROXIMATELY 1800 MEMBERS IN 01:59:33.866 --> 01:59:35.434 PRODUCTION STUDIO OPERATIONS 01:59:35.501 --> 01:59:37.803 AND UNIVERSAL STUDIOS HOLLYWOOD. 01:59:37.870 --> 01:59:40.206 I ALSO SERVE AS THE AS THE VICE 01:59:40.273 --> 01:59:41.807 CHAIR AND THE INCOMING CHAIR OF 01:59:41.874 --> 01:59:43.309 FILM, LA, WHICH IS THAT'S GOING 01:59:43.376 --> 01:59:45.678 TO BE EXCITING WITH ALL THE 01:59:45.745 --> 01:59:48.614 HEARINGS WE'RE HAVING LATELY. 01:59:48.681 --> 01:59:51.117 OUR MEMBERS ARE THE FIRST ON A 01:59:51.183 --> 01:59:52.184 PRODUCTION AND THE LAST TO 01:59:52.251 --> 01:59:53.953 LEAVE FROM PREPARING THE SHOPS 01:59:54.020 --> 01:59:55.388 WHERE SETS ARE BUILT, TO 01:59:55.454 --> 01:59:56.689 MAINTAINING STUDIO FACILITIES 01:59:56.756 --> 01:59:58.991 AND SUPPORTING DAILY OPERATIONS. 01:59:59.058 --> 02:00:00.459 WE HELP KEEP PRODUCTIONS 02:00:00.526 --> 02:00:01.961 RUNNING SMOOTHLY FROM BEGINNING 02:00:02.028 --> 02:00:04.196 TO END. FOR ME, THIS INDUSTRY 02:00:04.263 --> 02:00:06.232 IS PERSONAL. I'M A SECOND 02:00:06.299 --> 02:00:07.667 GENERATION LABORER WHO JOINED 02:00:07.733 --> 02:00:10.469 LOCAL 7241996, STRAIGHT OUT OF 02:00:10.536 --> 02:00:12.672 HIGH SCHOOL, FOLLOWING IN MY 02:00:12.738 --> 02:00:15.274 FATHER'S FOOTSTEPS LATER IN HIS 02:00:15.341 --> 02:00:16.909 CAREER, MY DAD UNFORTUNATELY 02:00:16.976 --> 02:00:19.145 HAD TO LEAVE. HE LEFT TO 02:00:19.211 --> 02:00:20.346 GEORGIA BECAUSE MY FATHER 02:00:20.413 --> 02:00:22.381 WORKED ON ALL THE MARVEL SHOWS, 02:00:22.448 --> 02:00:24.884 ALL THE MOVIES THAT MARVEL DID 02:00:24.951 --> 02:00:27.053 RELOCATED TO GEORGIA. AND SO 02:00:27.119 --> 02:00:29.689 THIS ONE IS PARTICULAR, YOU 02:00:29.755 --> 02:00:31.457 KNOW, IT'S A LITTLE IT'S HARD 02:00:31.524 --> 02:00:32.491 TALKING ABOUT IT SOMETIMES 02:00:32.558 --> 02:00:33.859 BECAUSE MY KIDS REALLY GREW UP 02:00:33.926 --> 02:00:35.027 WITHOUT THEIR GRANDFATHER AND 02:00:35.094 --> 02:00:36.762 THEIR GRANDMA FOR MANY, MANY 02:00:36.829 --> 02:00:39.365 YEARS. TO THIS DAY, MY PARENTS 02:00:39.432 --> 02:00:41.601 RELOCATED TO GEORGIA. THEY'RE 02:00:41.667 --> 02:00:43.035 THEY'RE NOW FULL TIME. WE KEEP 02:00:43.102 --> 02:00:44.670 TRYING TO TELL THEM TO COME 02:00:44.737 --> 02:00:45.871 BACK, BUT I THINK THEY DON'T 02:00:45.938 --> 02:00:47.740 WANT TO HANG OUT WITH THE KIDS 02:00:47.807 --> 02:00:50.843 ANYMORE. SO. BUT LISTEN, THE 02:00:50.910 --> 02:00:52.178 YOU KNOW, I WANTED TO CRACK A 02:00:52.244 --> 02:00:53.379 JOKE THERE, BUT IT'S SERIOUS. 02:00:53.446 --> 02:00:58.017 THIS, THIS, THIS IS GOES BEYOND. 02:00:58.084 --> 02:00:59.885 THE PROGRAMMATICAL CHANGES THAT 02:00:59.952 --> 02:01:02.321 WE MADE. YOU GUYS KNOW ME. I 02:01:02.388 --> 02:01:03.456 ALWAYS SPEAK FROM THE HEART, 02:01:03.522 --> 02:01:04.824 MAN. AND THE MEMBERS ARE THE 02:01:04.890 --> 02:01:07.727 ONES THAT SUFFER THE MOST. THE 02:01:07.793 --> 02:01:10.262 COMMUNITIES, THE BUSINESSES, 02:01:10.329 --> 02:01:12.431 THE FAMILIES. I MEAN, OUR 02:01:12.498 --> 02:01:14.934 INDUSTRY IS WELL KNOWN FOR, YOU 02:01:15.001 --> 02:01:17.503 KNOW, DIVORCE. AND IT'S BECAUSE 02:01:17.570 --> 02:01:20.740 MANY OF US HAD TO RELOCATE OR 02:01:20.806 --> 02:01:23.242 LEAVE FOR MONTHS AT A TIME. AND 02:01:23.309 --> 02:01:25.044 I'LL GIVE YOU A LITTLE A LITTLE 02:01:25.111 --> 02:01:26.812 EXAMPLE OF MY OWN PERSONAL 02:01:26.879 --> 02:01:28.314 STORY. WHEN MY DAUGHTER WAS 02:01:28.381 --> 02:01:31.884 BORN, SHE WAS BORN ON A FRIDAY. 02:01:31.951 --> 02:01:34.787 FRIDAY. I LEFT SUNDAY FOR SIX 02:01:34.854 --> 02:01:40.159 MONTHS ON A MOVIE. AND I MEAN, 02:01:40.226 --> 02:01:42.328 I WAS CRYING, MAN. YOU KNOW, 02:01:42.395 --> 02:01:44.430 LISTENING TO GINA. I WAS LIKE, 02:01:44.497 --> 02:01:46.265 YOU KNOW, SHE SHE GOT ME GOING 02:01:46.332 --> 02:01:48.067 BECAUSE IT'S TRUE. I'M NOT THE 02:01:48.134 --> 02:01:49.502 ONLY PERSON THAT'S EXPERIENCED 02:01:49.568 --> 02:01:51.237 THAT. THERE'S MANY OF US THAT 02:01:51.303 --> 02:01:53.105 HAVE DONE THAT. AND THAT'S THE 02:01:53.172 --> 02:01:55.641 UNFORTUNATE PART OF WHEN THESE 02:01:55.708 --> 02:01:57.810 PRODUCTIONS STARTED LEAVING, IS 02:01:57.877 --> 02:01:59.545 THAT NOT ONLY BUSINESSES 02:01:59.612 --> 02:02:01.380 SUFFERED, BUT FAMILIES, 02:02:01.447 --> 02:02:03.949 CHILDREN, YOU KNOW, IT'S IT'S 02:02:04.016 --> 02:02:05.885 ROUGH, IT'S ROUGH. SO I'M GOING 02:02:05.951 --> 02:02:07.186 TO CONTINUE WITH MY REMARKS 02:02:07.253 --> 02:02:10.056 REAL QUICK. SO WHEN PRODUCTIONS 02:02:10.122 --> 02:02:11.490 LEAVES, OUR MEMBERS LOSE MORE 02:02:11.557 --> 02:02:12.892 THAN PAYCHECKS. THEY ALSO LOSE 02:02:12.958 --> 02:02:14.694 WORK HOURS. AND THE EMPLOYEE, 02:02:14.760 --> 02:02:16.195 THE EMPLOYER CONTRIBUTIONS THAT 02:02:16.262 --> 02:02:17.596 SUPPORT HEALTH CARE AND 02:02:17.663 --> 02:02:19.031 RETIREMENT. THESE CHALLENGES 02:02:19.098 --> 02:02:20.833 EXTEND BEYOND OUR UNION. 02:02:20.900 --> 02:02:22.635 WHETHER YOU'RE A LABORER, A 02:02:22.702 --> 02:02:24.070 TEAMSTER, A PROP MAKER, OR A 02:02:24.136 --> 02:02:25.871 PRODUCTION ASSISTANT, WE ALL 02:02:25.938 --> 02:02:27.673 DEPEND ON PRODUCTIONS CHOOSING 02:02:27.740 --> 02:02:29.208 CALIFORNIA. THAT IS WHY THIS 02:02:29.275 --> 02:02:31.310 TAX CREDIT PROGRAM REALLY 02:02:31.377 --> 02:02:32.712 MATTERS. I WANT TO THANK THE 02:02:32.778 --> 02:02:34.180 LEGISLATURE, THE LEGISLATURE, 02:02:34.246 --> 02:02:35.915 THE GOVERNOR, OUR INDUSTRY 02:02:35.981 --> 02:02:37.750 PARTNERS, MY UNION BROTHERS AND 02:02:37.817 --> 02:02:39.552 SISTERS FOR WORKING SO HARD TO 02:02:39.618 --> 02:02:40.786 INCREASE THE ANNUAL FUNDING 02:02:40.853 --> 02:02:43.856 FROM 330 TO 750 MILLION. 02:02:43.923 --> 02:02:46.058 BROADER ELIGIBILITY, IMPROVED 02:02:46.125 --> 02:02:47.493 REFUNDABILITY AND THE NEW 02:02:47.560 --> 02:02:48.961 POST-PRODUCTION AND INCENTIVE 02:02:49.028 --> 02:02:50.362 ARE ALSO MEANINGFUL STEPS 02:02:50.429 --> 02:02:52.131 FORWARD. TOGETHER, THESE 02:02:52.198 --> 02:02:53.232 CHANGES GIVE CALIFORNIA A 02:02:53.299 --> 02:02:54.667 STRONGER FOUNDATION TO COMPETE 02:02:54.734 --> 02:02:57.136 FOR WORK. BUT WE'RE NOT EVEN 02:02:57.203 --> 02:03:00.473 CLOSE NOW. WE NEED TO BUILD ON 02:03:00.539 --> 02:03:01.574 THAT PROGRESS WITH LONG TERM 02:03:01.640 --> 02:03:03.509 STABILITY, PRODUCTION, OUR 02:03:03.576 --> 02:03:05.311 PLANNED YEARS AHEAD, AND 02:03:05.377 --> 02:03:06.512 STUDIOS MAKE DECISIONS ABOUT 02:03:06.579 --> 02:03:08.247 WHERE TO INVEST FOR THE LONG 02:03:08.314 --> 02:03:10.416 HAUL. EXTENDING FOR ME, ONE OF 02:03:10.483 --> 02:03:11.550 THESE THINGS THAT THAT I THINK 02:03:11.617 --> 02:03:13.352 IS VERY IMPORTANT, WHICH I'M 02:03:13.419 --> 02:03:15.054 NOT SURE IF IT'S BEEN MENTIONED, 02:03:15.121 --> 02:03:16.889 BUT EXTENDING THE PROGRAM 02:03:16.956 --> 02:03:17.990 BEYOND THE FIVE YEARS WOULD 02:03:18.057 --> 02:03:19.391 GIVE PRODUCERS GREATER 02:03:19.458 --> 02:03:20.860 CERTAINTY AND MORE CONFIDENCE 02:03:20.926 --> 02:03:22.661 TO KEEP INVESTING HERE. OTHER 02:03:22.728 --> 02:03:23.963 STATES HAVE ALREADY RECOGNIZED 02:03:24.029 --> 02:03:26.332 THE VALUE OF STABILITY. AND 02:03:26.398 --> 02:03:28.067 SOME, YOU KNOW, NEW YORK, WHAT 02:03:28.134 --> 02:03:29.435 DO THEY DO? CARRY TEN YEARS, 02:03:29.502 --> 02:03:31.270 RIGHT. I THINK THEIR THEIR 02:03:31.337 --> 02:03:34.907 PROGRAM IS EXTENDED THROUGH THE 02:03:34.974 --> 02:03:36.342 3030, I DON'T KNOW, IT'S A TEN 02:03:36.408 --> 02:03:37.877 YEAR PROGRAM. LET'S JUST SAY 02:03:37.943 --> 02:03:39.945 THAT OURS IS A FIVE YEAR. AND 02:03:40.012 --> 02:03:41.080 THAT THAT REALLY, TRULY MAKES A 02:03:41.147 --> 02:03:43.549 BIG DIFFERENCE. I SAT DOWN WITH 02:03:43.616 --> 02:03:46.018 THE PRODUCER, ROSS FANGER, WHO 02:03:46.085 --> 02:03:47.820 BECAME MY FRIEND, BECAUSE HE 02:03:47.887 --> 02:03:49.255 REACHED OUT TO ME BECAUSE HE 02:03:49.321 --> 02:03:50.456 WANTED TO KNOW, WHAT THE HECK'S 02:03:50.523 --> 02:03:52.158 GOING ON. ALEX, WITH 02:03:52.224 --> 02:03:54.660 PRODUCTIONS. WHY IS IT THAT WE 02:03:54.727 --> 02:03:56.495 CAN'T GET THIS RIGHT NOW? 02:03:56.562 --> 02:03:57.563 OBVIOUSLY, I EXPLAINED TO HIM 02:03:57.630 --> 02:04:00.399 THAT THERE WAS A LOT MORE TO IT. 02:04:00.466 --> 02:04:02.635 RIGHT? BUDGET RESTRICTIONS, 02:04:02.701 --> 02:04:05.171 PEOPLE HAVE TO AGREE. BUT ONE 02:04:05.237 --> 02:04:06.906 THING HE TOLD ME THAT STUCK IN 02:04:06.972 --> 02:04:09.141 MY MIND WAS THAT HE'S BEEN 02:04:09.208 --> 02:04:10.509 DOING MOVIES ALL OVER THE 02:04:10.576 --> 02:04:12.344 COUNTRY, ALL OVER, YOU KNOW, 02:04:12.411 --> 02:04:14.914 THE WORLD, REALLY. AND HE'S 02:04:14.980 --> 02:04:17.750 LIKE, BUT WE ALL WANT A FILM IN 02:04:17.817 --> 02:04:20.586 LA. WE WANT TO BE IN CALIFORNIA. 02:04:20.653 --> 02:04:23.455 AND SO IT'S, IT'S UNFORTUNATELY, 02:04:23.522 --> 02:04:25.991 IT WAS BEYOND HIS, YOU KNOW, 02:04:26.058 --> 02:04:28.160 DECISION MAKING PROCESS THAT HE 02:04:28.227 --> 02:04:29.261 COULDN'T JUST SAY, LET'S STAY 02:04:29.328 --> 02:04:32.832 IN LA AND, AND DO THAT. BUT 02:04:32.898 --> 02:04:35.067 ANYWAY, WITH, WITH THAT. AND, 02:04:35.134 --> 02:04:37.503 YOU KNOW, FOR OUR MEMBERS, 02:04:37.570 --> 02:04:38.604 SUCCESS MEANS PRODUCTIONS 02:04:38.671 --> 02:04:40.406 ACTUALLY FILMING HERE, MORE 02:04:40.472 --> 02:04:42.208 CALIFORNIANS, WORKING FAMILIES 02:04:42.274 --> 02:04:43.976 EARNING WAGES, MAINTAINING 02:04:44.043 --> 02:04:45.411 BENEFITS. IT MEANS SHOWS 02:04:45.477 --> 02:04:47.213 RETURNING SEASON AFTER SEASON, 02:04:47.279 --> 02:04:48.681 BECAUSE STEADY WORK IS WHAT 02:04:48.747 --> 02:04:50.416 ALLOWS PEOPLE TO BUILD LASTING 02:04:50.482 --> 02:04:52.618 CAREERS. WE EACH BRING A 02:04:52.685 --> 02:04:54.053 DIFFERENT PERSPECTIVE TO THE 02:04:54.119 --> 02:04:55.855 PANEL, BUT WE SHARE A COMMON 02:04:55.921 --> 02:04:57.656 GOAL A STRONG CALIFORNIA 02:04:57.723 --> 02:04:59.191 PRODUCTION INDUSTRY. I LOOK 02:04:59.258 --> 02:05:00.526 FORWARD TO WORKING TOGETHER TO 02:05:00.593 --> 02:05:01.694 BUILD ON WHAT WE'VE 02:05:01.760 --> 02:05:03.062 ACCOMPLISHED, BRING MORE WORK 02:05:03.128 --> 02:05:04.563 HOME, AND DO EVERYTHING WE CAN 02:05:04.630 --> 02:05:06.665 DO TO KEEP HOLLYWOOD AND 02:05:06.732 --> 02:05:08.834 HOLLYWOOD. THANK YOU, THANK YOU 02:05:08.901 --> 02:05:12.104 ALEX. APPRECIATE IT. AND I'D 02:05:12.171 --> 02:05:14.206 LIKE TO RECOGNIZE BETSY BEERS. 02:05:14.273 --> 02:05:17.810 HI. HI. GOOD MORNING. THANKS 02:05:17.877 --> 02:05:19.678 FOR THAT. AND IT'S LOVELY TO 02:05:19.745 --> 02:05:20.880 MEET ALL OF YOU. I'VE NEVER 02:05:20.946 --> 02:05:22.715 DONE THIS BEFORE, SO I'M REALLY 02:05:22.781 --> 02:05:24.850 EXCITED TO BE HERE. I, YOU KNOW, 02:05:24.917 --> 02:05:26.518 MY NAME IS BETSY BEERS. I'M THE 02:05:26.585 --> 02:05:28.087 CREATIVE PARTNER AT SHONDALAND 02:05:28.153 --> 02:05:29.755 AND HAVE BEEN THE PRODUCING 02:05:29.822 --> 02:05:31.223 PARTNER OF SHONDA RHIMES FOR 02:05:31.290 --> 02:05:32.958 OVER 20 YEARS. WHICH MEANS 02:05:33.025 --> 02:05:34.793 BEFORE THERE WAS A SHONDALAND, 02:05:34.860 --> 02:05:35.961 THERE WAS JUST THE TWO OF US 02:05:36.028 --> 02:05:37.830 SITTING IN A ROOM. BASICALLY, 02:05:37.897 --> 02:05:39.431 DURING THE PERIOD OF TIME WE'VE 02:05:39.498 --> 02:05:42.301 MADE, I BELIEVE 13 SERIES, THE 02:05:42.368 --> 02:05:43.435 MAJORITY OF WHICH WE FILMED 02:05:43.502 --> 02:05:45.170 RIGHT HERE IN SOUTHERN 02:05:45.237 --> 02:05:46.939 CALIFORNIA. SO I'M HERE TODAY 02:05:47.006 --> 02:05:48.741 TO TALK ABOUT THE SUBJECT, 02:05:48.807 --> 02:05:50.576 WHICH ABOUT WHICH I FEEL 02:05:50.643 --> 02:05:52.044 PASSIONATELY, WHICH IS THE 02:05:52.111 --> 02:05:53.445 CALIFORNIA TAX CREDITS AND HOW 02:05:53.512 --> 02:05:55.314 THOSE TAX CREDITS ARE 02:05:55.381 --> 02:05:57.349 DETERMINED. FOR BACKGROUND, 02:05:57.416 --> 02:05:58.484 WHEN WE STARTED FILMING THE 02:05:58.550 --> 02:05:59.585 FIRST SEASON OF GRAY'S ANATOMY 02:05:59.652 --> 02:06:01.854 IN 2004, IT DIDN'T OCCUR TO US 02:06:01.921 --> 02:06:03.923 OR ANYBODY ELSE AT ABC TO GO 02:06:03.989 --> 02:06:06.058 SOMEWHERE ELSE. THE CREW, THE 02:06:06.125 --> 02:06:07.359 INFRASTRUCTURE, THE FACILITIES 02:06:07.426 --> 02:06:10.062 WERE UNPARALLELED IN THE WORLD. 02:06:10.129 --> 02:06:11.497 WE CREATED THE WORLD OF SEATTLE 02:06:11.563 --> 02:06:13.999 GRACE HERE. FROM THAT POINT ON, 02:06:14.066 --> 02:06:15.467 AS MORE STATES AND LOCATIONS 02:06:15.534 --> 02:06:16.869 STARTED TO PROVIDE BETTER 02:06:16.936 --> 02:06:18.671 INCENTIVES, SHONDA AND I 02:06:18.737 --> 02:06:20.806 CONTINUED TO FIGHT TO FILM 02:06:20.873 --> 02:06:22.641 LOCALLY PRIVATE PRACTICE. WE 02:06:22.708 --> 02:06:25.511 SET IN LA, SO WE DIDN'T MOVE IT. 02:06:25.577 --> 02:06:26.979 SCANDAL. WE FIGURED OUT A WAY 02:06:27.046 --> 02:06:28.747 TO DOUBLE LA FOR WASHINGTON 02:06:28.814 --> 02:06:30.182 SEAMLESSLY AND HOW TO GET AWAY 02:06:30.249 --> 02:06:31.684 WITH MURDER DOUBLED FOR 02:06:31.750 --> 02:06:33.452 PHILADELPHIA. OVER THIS PERIOD 02:06:33.519 --> 02:06:35.254 OF TIME, WE DEVELOPED A DEEP 02:06:35.321 --> 02:06:36.689 BENCH OF THE BEST BELOW THE 02:06:36.755 --> 02:06:39.024 LINE TALENT AROUND. WE FOLLOWED 02:06:39.091 --> 02:06:40.659 UP WITH THE CATCH FOR THE 02:06:40.726 --> 02:06:42.828 PEOPLE AND STATION 19 ALL 02:06:42.895 --> 02:06:44.563 FILMING HERE. AND FINALLY, A 02:06:44.630 --> 02:06:46.432 FEW YEARS AGO, WE BUILT THE 02:06:46.498 --> 02:06:48.200 ENTIRE WHITE HOUSE. AND I MEAN 02:06:48.267 --> 02:06:50.369 REALLY THE ENTIRE WHITE HOUSE 02:06:50.436 --> 02:06:52.671 ON OUR LOT IN LA FOR NETFLIX, 02:06:52.738 --> 02:06:54.340 WHICH WE WERE ABLE TO ACHIEVE 02:06:54.406 --> 02:06:55.808 THANKS TO THAT CREDIT THAT THE 02:06:55.874 --> 02:06:58.978 STATE PROVIDED. SO RECENTLY 02:06:59.044 --> 02:07:00.746 WHEN OUR GREAT PARTNERS AT ABC 02:07:00.813 --> 02:07:02.381 APPLIED FOR THE NEW TAX CREDITS 02:07:02.448 --> 02:07:03.682 THIS PAST SUMMER FOR OUR NEW 02:07:03.749 --> 02:07:06.185 GRAY'S ANATOMY SPIN OFF SET IN 02:07:06.251 --> 02:07:08.420 WEST TEXAS, WE ASSUMED THAT OUR 02:07:08.487 --> 02:07:09.822 LONG HISTORY OF LOYALTY TO THE 02:07:09.888 --> 02:07:11.557 STATE FIGHTING TO STAY HERE 02:07:11.623 --> 02:07:12.725 WHEN THERE WERE NO CREDITS TO 02:07:12.791 --> 02:07:14.626 BE HAD, AND THE FACT THE ODDS 02:07:14.693 --> 02:07:15.761 WERE AS THEY HAD BEEN WITH 02:07:15.828 --> 02:07:17.563 EVERY SINGLE SHOW THAT SHONDA 02:07:17.629 --> 02:07:19.331 HAS CREATED OR CO-CREATED, 02:07:19.398 --> 02:07:21.300 THERE WOULD BE AT LEAST SIX 02:07:21.367 --> 02:07:22.735 SEASONS FOR A WONDERFUL CREW 02:07:22.801 --> 02:07:24.603 AND STAFF TO KEEP WORKING AND 02:07:24.670 --> 02:07:26.372 TO SLEEP IN THEIR BEDS AT NIGHT. 02:07:26.438 --> 02:07:28.540 IT WAS ALSO CRUCIAL SINCE THE 02:07:28.607 --> 02:07:29.908 CO-CREATOR AND SHOWRUNNER IS 02:07:29.975 --> 02:07:32.111 ALSO RUNNING GRAY'S, AND THE 02:07:32.177 --> 02:07:33.612 GEOGRAPHICAL PROXIMITY WAS KEY 02:07:33.679 --> 02:07:36.415 TO HER ABILITY TO DOING THE JOB. 02:07:36.482 --> 02:07:38.584 HOW WRONG WE WERE. WE WERE 02:07:38.650 --> 02:07:40.052 DENIED CREDIT DUE TO THE FACT 02:07:40.119 --> 02:07:41.453 WE WERE NOT PROVIDING ENOUGH 02:07:41.520 --> 02:07:42.955 JOBS FOR THE STATE TO CONSIDER 02:07:43.022 --> 02:07:45.424 US AN ASSET. NONE OF OUR PAST 02:07:45.491 --> 02:07:47.259 HISTORY OR TRACK RECORD WERE 02:07:47.326 --> 02:07:50.129 TAKEN INTO CONSIDERATION. 02:07:50.195 --> 02:07:51.163 UNDAUNTED, OUR WONDERFUL 02:07:51.230 --> 02:07:53.432 PARTNERS AT ABC AGREED THAT IT 02:07:53.499 --> 02:07:54.833 WOULD MAKE MORE SENSE FOR US TO 02:07:54.900 --> 02:07:56.969 APPLY AGAIN IN THE FALL. IN 02:07:57.036 --> 02:07:58.804 ORDER TO DO THAT, WE HAD TO 02:07:58.871 --> 02:08:00.906 POSTPONE PREP, LOCKING DOWN 02:08:00.973 --> 02:08:03.075 STAGE SPACE, LOSING BELOW THE 02:08:03.142 --> 02:08:04.143 LINE TALENT. ET CETERA. ET 02:08:04.209 --> 02:08:05.911 CETERA. BUT WE ALL DEEMED IT 02:08:05.978 --> 02:08:07.446 NECESSARY. AND WE'RE WORKING ON 02:08:07.513 --> 02:08:08.881 WAYS TO LEGITIMATELY BUILD UP 02:08:08.947 --> 02:08:11.316 THE NUMBER OF EMPLOYEES. AND 02:08:11.383 --> 02:08:13.752 THEN WE WERE TOLD, REGARDLESS 02:08:13.819 --> 02:08:15.387 OF EARLIER MESSAGING, THERE 02:08:15.454 --> 02:08:17.156 WOULD BE NO CHANCE TO APPLY. IF 02:08:17.222 --> 02:08:19.992 YOU WERE A NEW SHOW RETURNING. 02:08:20.059 --> 02:08:23.262 SURE. NOT A NEW SHOW. WE LOST 02:08:23.328 --> 02:08:24.696 PERSONNEL. WE LOST A LOT OF 02:08:24.763 --> 02:08:26.231 TIME, AND WE LOST MONEY TRYING 02:08:26.298 --> 02:08:27.933 TO FIND A WAY TO STAY WHERE WE 02:08:28.000 --> 02:08:30.069 HAVE ALWAYS BEEN. NOW WE ARE 02:08:30.135 --> 02:08:31.970 FILMING IN ALBUQUERQUE, WHERE 02:08:32.037 --> 02:08:33.338 THEY HAVE BEEN WONDERFUL TO 02:08:33.405 --> 02:08:35.474 WORK WITH, BUT WE WANT TO BE 02:08:35.541 --> 02:08:38.410 HERE. WE'VE ALWAYS BEEN HERE. 02:08:38.477 --> 02:08:39.912 AND LOOK, THERE'S AN IRONY HERE 02:08:39.978 --> 02:08:41.246 TOO. I PERSONALLY FOUGHT FOR 02:08:41.313 --> 02:08:44.183 THE TAX CREDITS WHEN I WENT UP 02:08:44.249 --> 02:08:46.251 TO SACRAMENTO AND SCREENED, 02:08:46.318 --> 02:08:47.653 SCREENED THE RESIDENTS AND 02:08:47.719 --> 02:08:49.154 TALKED ABOUT TO ALL THOSE 02:08:49.221 --> 02:08:50.589 PEOPLE. WHAT DID IT MEAN TO 02:08:50.656 --> 02:08:53.892 STAY IN MY HOME STATE? I WITH 02:08:53.959 --> 02:08:56.061 JASON GEORGE, I HOSTED YOU IN A 02:08:56.128 --> 02:08:57.396 NUMBER OF PEOPLE ON THE SET OF 02:08:57.463 --> 02:08:59.131 GRAY'S ANATOMY SO THEY COULD 02:08:59.198 --> 02:09:00.666 SEE HOW THE LONGEST RUNNING 02:09:00.732 --> 02:09:01.800 PRIME TIME MEDICAL SHOW HAS 02:09:01.867 --> 02:09:03.535 BEEN ABLE TO LIFT UP AND 02:09:03.602 --> 02:09:05.370 PROMOTE FROM WITHIN. THE WOMAN 02:09:05.437 --> 02:09:06.839 WHO IS NOW RUNNING GRAY'S 02:09:06.905 --> 02:09:08.240 ANATOMY AND IS GOING TO BE THE 02:09:08.307 --> 02:09:10.042 CO-CREATOR OF OUR SPIN OFF, WAS 02:09:10.109 --> 02:09:12.878 A RUNNER. SHE WAS AN ASSISTANT 02:09:12.945 --> 02:09:15.080 RUNNER SEASON TWO, AND SHE'S 02:09:15.147 --> 02:09:16.882 NOW RUNNING THE SHOW. FOR 02:09:16.949 --> 02:09:19.051 ANOTHER EXAMPLE, MY 02:09:19.118 --> 02:09:21.220 EX-ASSISTANT HAS WORKED THROUGH 02:09:21.286 --> 02:09:22.921 THE YEARS AND IS RUNNING 02:09:22.988 --> 02:09:25.023 BRIDGERTON. THAT'S THE WAY YOU 02:09:25.090 --> 02:09:27.659 CONTINUE TO INCREASE TALENT AND 02:09:27.726 --> 02:09:29.428 MORE. IRONICALLY, A FEW YEARS 02:09:29.495 --> 02:09:30.863 AGO, I WAS AWARDED THE 02:09:30.929 --> 02:09:32.164 CALIFORNIA GOLDEN STATE AWARD 02:09:32.231 --> 02:09:34.867 FOR KEEPING JOBS IN L.A. I 02:09:34.933 --> 02:09:35.667 DON'T EVEN KNOW WHAT TO SAY 02:09:35.734 --> 02:09:38.804 ABOUT THAT. I'M HERE TO SAY 02:09:38.871 --> 02:09:41.073 PLEASE, PLEASE LOOK AT METRICS 02:09:41.140 --> 02:09:42.808 AND FACTORS WHEN DECIDING WHO 02:09:42.875 --> 02:09:44.977 GETS CREDIT, AND PLEASE 02:09:45.043 --> 02:09:46.445 INCREASE WHAT'S AVAILABLE. IF 02:09:46.512 --> 02:09:48.180 IT ALL BOILS DOWN TO NUMBERS, 02:09:48.247 --> 02:09:49.615 ALL YOU ARE GOING TO HAVE IS 02:09:49.681 --> 02:09:51.416 MOVIES COMING IN AND OUT OF 02:09:51.483 --> 02:09:52.518 HERE. AND THE ADVANTAGES WE 02:09:52.584 --> 02:09:53.919 HAVE DISCOVERED WITH LONG 02:09:53.986 --> 02:09:56.455 RUNNING SHOWS WILL BE GONE. 02:09:56.522 --> 02:10:02.294 THANK YOU, THANK YOU BETSY. I'D 02:10:02.361 --> 02:10:05.430 LIKE TO RECOGNIZE MARIELA BAUZA. 02:10:05.497 --> 02:10:07.966 HI, HOW ARE YOU? THANK YOU SO 02:10:08.033 --> 02:10:10.135 MUCH FOR FOR ALLOWING US TO BE 02:10:10.202 --> 02:10:12.704 HERE. I'D LIKE. I'M MARY 02:10:12.771 --> 02:10:14.139 ALABANZA. I AM THE PRESIDENT OF 02:10:14.206 --> 02:10:15.941 THE CALIFORNIA COAST ALLIANCE 02:10:16.008 --> 02:10:18.110 AND EXECUTIVE VICE PRESIDENT OF 02:10:18.177 --> 02:10:19.144 BUSINESS DEVELOPMENT AT 02:10:19.211 --> 02:10:21.313 SIGNATURE POST. AND I AM HERE 02:10:21.380 --> 02:10:24.183 TO REPRESENT THE THOUSANDS OF 02:10:24.249 --> 02:10:26.351 POST-PRODUCTION PROFESSIONALS 02:10:26.418 --> 02:10:29.588 WHO HAVE FINALLY A SEAT AT THE 02:10:29.655 --> 02:10:34.960 TABLE. SO THIS IS A VERY NEW 02:10:35.027 --> 02:10:36.094 OPPORTUNITY FOR THE 02:10:36.161 --> 02:10:36.862 POST-PRODUCTION COMMUNITY. IT 02:10:36.929 --> 02:10:39.298 IS THE FIRST TIME THAT 02:10:39.364 --> 02:10:42.201 CALIFORNIA HAS RECOGNIZED 02:10:42.267 --> 02:10:43.969 POST-PRODUCTION AS IT'S ON ITS 02:10:44.036 --> 02:10:46.505 OWN. AND THIS IS A BIT OF A 02:10:46.572 --> 02:10:47.973 HOMECOMING FOR ME, AS YOU KNOW, 02:10:48.040 --> 02:10:52.477 OR FOR US, BECAUSE ON SEPTEMBER 02:10:52.544 --> 02:10:54.846 18TH, IN THIS VERY THEATER, 02:10:54.913 --> 02:10:58.383 GOVERNOR NEWSOM SIGNED AB 2319 02:10:58.450 --> 02:11:00.185 INTO LAW, ESTABLISHING 02:11:00.252 --> 02:11:01.620 CALIFORNIA'S FIRST EVER 02:11:01.687 --> 02:11:03.422 STANDALONE POST-PRODUCTION TAX 02:11:03.488 --> 02:11:04.623 INCENTIVE. AND THAT MOMENT 02:11:04.690 --> 02:11:06.959 WOULD NOT HAVE BEEN POSSIBLE 02:11:07.025 --> 02:11:08.860 WITHOUT THE LEADERSHIP OF 02:11:08.927 --> 02:11:10.596 ASSEMBLY MEMBER ZOBER AND 02:11:10.662 --> 02:11:13.532 PAVING THE WAY FOR ASSEMBLY 02:11:13.599 --> 02:11:16.401 MEMBER NICK SCHULTZ, WHO I CALL 02:11:16.468 --> 02:11:17.836 OUR KNIGHT AND LEGISLATIVE 02:11:17.903 --> 02:11:20.739 ARMOR, BECAUSE HE TOOK ON 02:11:20.806 --> 02:11:22.074 POST-PRODUCTION AT A TIME THAT 02:11:22.140 --> 02:11:23.542 WAS INCREDIBLY DIFFICULT. IT 02:11:23.609 --> 02:11:25.811 WAS A YEAR WITH AN OUTGOING 02:11:25.877 --> 02:11:26.778 ADMINISTRATION, THE SECOND YEAR, 02:11:26.845 --> 02:11:29.348 THE SECOND YEAR OF A SESSION. 02:11:29.414 --> 02:11:33.986 AND SO IT IS MY HOPE THAT BY 02:11:34.052 --> 02:11:35.854 LAUNCHING THE CALIFORNIA POST 02:11:35.921 --> 02:11:36.888 ALLIANCE, WHICH BECAME THE 02:11:36.955 --> 02:11:39.057 SPONSOR OF THE BILL, WE CAN 02:11:39.124 --> 02:11:40.859 ADVOCATE, EDUCATE AND BUILD 02:11:40.926 --> 02:11:43.762 COMMUNITY. AND I'M HERE TO 02:11:43.829 --> 02:11:45.163 ANSWER THE QUESTION OF WHY DO 02:11:45.230 --> 02:11:47.399 WE NEED A STANDALONE POST 02:11:47.466 --> 02:11:49.868 PRODUCTION TAX INCENTIVE? WELL, 02:11:49.935 --> 02:11:50.602 HISTORICALLY, REGARDLESS OF 02:11:50.669 --> 02:11:52.004 WHERE PRINCIPAL PHOTOGRAPHY 02:11:52.070 --> 02:11:53.872 TOOK PLACE, CALIFORNIA WAS 02:11:53.939 --> 02:11:55.574 ALWAYS THE PREMIER DESTINATION 02:11:55.641 --> 02:11:57.743 FOR POST-PRODUCTION. BUT 02:11:57.809 --> 02:11:59.177 UNFORTUNATELY, WITH AGGRESSIVE 02:11:59.244 --> 02:12:01.380 TAX INCENTIVES OFFERED BY OTHER 02:12:01.446 --> 02:12:03.582 TERRITORIES, BOTH DOMESTIC AND 02:12:03.649 --> 02:12:04.616 INTERNATIONAL, THAT IS NO 02:12:04.683 --> 02:12:06.785 LONGER THE CASE. THE 02:12:06.852 --> 02:12:08.620 POST-PRODUCTION WORKFORCE IS SO 02:12:08.687 --> 02:12:12.524 VAST, WE'RE ABOUT 12,000 POST 02:12:12.591 --> 02:12:13.959 PROFESSIONALS, AND THAT NUMBER 02:12:14.026 --> 02:12:15.761 IS PROBABLY UNDERREPRESENTED 02:12:15.827 --> 02:12:17.562 BECAUSE THERE HASN'T BEEN 02:12:17.629 --> 02:12:20.432 HISTORICAL DATA TRACKING OUR 02:12:20.499 --> 02:12:25.103 IMPACT AND BECAUSE OUR 02:12:25.170 --> 02:12:27.673 CONCENTRATION OF TALENT AND THE 02:12:27.739 --> 02:12:29.141 INFRASTRUCTURE IS STILL THE 02:12:29.207 --> 02:12:30.909 LARGEST OF ANYWHERE IN THE 02:12:30.976 --> 02:12:32.344 WORLD, WE NEED NOT ONLY THE 02:12:32.411 --> 02:12:34.413 LOCAL PRODUCTIONS, BUT WE NEED 02:12:34.479 --> 02:12:35.881 THOSE OUT OF STATE AND 02:12:35.947 --> 02:12:37.382 INTERNATIONAL PRODUCTIONS TO 02:12:37.449 --> 02:12:39.217 COME BACK TO CALIFORNIA TO BE 02:12:39.284 --> 02:12:41.687 ABLE TO SUSTAIN SUCH A VAST 02:12:41.753 --> 02:12:46.058 COMMUNITY. FOR EXAMPLE, THE 02:12:46.124 --> 02:12:47.492 BIGGEST CHALLENGE THAT WE HAD 02:12:47.559 --> 02:12:49.261 AS WE SET OUT ON OUR 02:12:49.328 --> 02:12:51.029 LEGISLATIVE JOURNEY WAS TO 02:12:51.096 --> 02:12:53.265 REALLY EDUCATE PEOPLE ON WHAT 02:12:53.332 --> 02:12:54.966 POST-PRODUCTION WAS, BECAUSE 02:12:55.033 --> 02:12:57.903 OUR WORK IS NOT AS VISIBLE AS 02:12:57.969 --> 02:12:59.004 PRODUCTION. YOU DON'T SEE THE 02:12:59.071 --> 02:13:00.839 TRUCKS, YOU DON'T SEE THE 02:13:00.906 --> 02:13:02.941 ACTORS ON THE SCREEN. WE'RE 02:13:03.008 --> 02:13:05.477 FELT. WE'RE NOT SEEN. OUR 02:13:05.544 --> 02:13:07.612 STRUGGLES WERE ALSO INVISIBLE. 02:13:07.679 --> 02:13:10.148 SO WHAT WE WERE ABLE TO 02:13:10.215 --> 02:13:12.317 ILLUSTRATE AND EDUCATE EVERYONE 02:13:12.384 --> 02:13:15.153 THAT, FOR EXAMPLE, PRODUCTION 02:13:15.220 --> 02:13:18.423 IS SIX WEEKS TO TEN WEEKS, 02:13:18.490 --> 02:13:21.727 WHEREAS POST-PRODUCTION IS 24 02:13:21.793 --> 02:13:24.196 TO 48 WEEKS. THESE ARE LONG, 02:13:24.262 --> 02:13:26.365 STABLE JOBS THAT ARE AN 02:13:26.431 --> 02:13:29.234 ECONOMIC DRIVER THAT HAVE NOT 02:13:29.301 --> 02:13:32.104 BEEN AT THE FOREFRONT OF, OF 02:13:32.170 --> 02:13:33.939 THIS CONVERSATION. SO I'M 02:13:34.005 --> 02:13:36.074 INCREDIBLY GRATEFUL TO EACH OF 02:13:36.141 --> 02:13:38.543 YOU FOR GIVING US THAT, THAT 02:13:38.610 --> 02:13:41.413 MOMENTUM. AND WHILE WE DID 02:13:41.480 --> 02:13:43.648 ACCOMPLISH SOMETHING HISTORICAL, 02:13:43.715 --> 02:13:46.852 WE DID FALL SHORT BY ONE ZERO. 02:13:46.918 --> 02:13:49.521 OUR BUDGET REQUEST WAS OF 100 02:13:49.588 --> 02:13:51.556 MILLION AND WE DID RECEIVE 10 02:13:51.623 --> 02:13:52.958 MILLION. AND THAT IS A 02:13:53.024 --> 02:13:54.059 TESTAMENT TO ALL THE 02:13:54.126 --> 02:13:56.595 LEGISLATORS THAT RECOGNIZED THE 02:13:56.661 --> 02:13:58.363 URGENCY THAT ASSEMBLY MEMBER 02:13:58.430 --> 02:13:59.898 SCHULTZ ADDRESSED EARLIER IN 02:13:59.965 --> 02:14:02.367 HIS OPENING STATEMENTS. AND 02:14:02.434 --> 02:14:04.936 JUST FOR PERSPECTIVE AND TO 02:14:05.003 --> 02:14:06.304 ADDRESS SOMETHING THAT ASSEMBLY 02:14:06.371 --> 02:14:08.874 MEMBER GIBSON ASKED. WHEN 02:14:08.940 --> 02:14:10.108 YOU'RE ASKING FOR SOMETHING 02:14:10.175 --> 02:14:12.744 THAT IS UNPRECEDENTED, FOR 02:14:12.811 --> 02:14:14.346 EXAMPLE, AN UNCAPPED OR ABOVE 02:14:14.413 --> 02:14:16.415 THE LINE, YOU HAVE TO LOOK TO 02:14:16.481 --> 02:14:18.884 OTHER STATES OR TO OTHER 02:14:18.950 --> 02:14:20.352 COUNTRIES THAT HAVE DONE IT TO 02:14:20.419 --> 02:14:22.120 GET THAT THAT THOSE FACTS, 02:14:22.187 --> 02:14:23.989 THOSE METRICS THAT BETSY 02:14:24.055 --> 02:14:25.891 ALLUDED TO. AND WHEN YOU THINK 02:14:25.957 --> 02:14:27.592 THAT A STATE AS VAST AND AS BIG 02:14:27.659 --> 02:14:30.128 AS CALIFORNIA ONLY GOT $10 02:14:30.195 --> 02:14:32.230 MILLION, BUT ONE OF THE METRICS 02:14:32.297 --> 02:14:34.699 THAT WE SHARED THROUGH OUR 02:14:34.766 --> 02:14:36.635 JOURNEY IS THAT NEW YORK, IN 02:14:36.701 --> 02:14:39.504 THE FOURTH QUARTER OF 2024, 02:14:39.571 --> 02:14:41.907 AWARDED 18 PROJECTS, THE TAX 02:14:41.973 --> 02:14:43.809 INCENTIVE, AND THAT WAS AN $11 02:14:43.875 --> 02:14:45.944 MILLION INVESTMENT THAT 02:14:46.011 --> 02:14:49.114 GENERATED $57 MILLION OF SPEND 02:14:49.181 --> 02:14:51.683 BEFORE A SINGLE DOLLAR WAS PAID 02:14:51.750 --> 02:14:54.586 OUT. AND IT GAVE THE STATE A 02:14:54.653 --> 02:14:58.857 REVENUE OF $46 MILLION. THAT IS 02:14:58.924 --> 02:15:01.059 ONE QUARTER IN ONE STATE THAT 02:15:01.126 --> 02:15:02.828 IS SO MUCH SMALLER THAN 02:15:02.894 --> 02:15:04.663 CALIFORNIA. IMAGINE WHAT WE CAN 02:15:04.729 --> 02:15:07.866 DO IF WE MULTIPLY THAT FOR OUR 02:15:07.933 --> 02:15:10.035 STATE. AND YOU KNOW AS A 02:15:10.101 --> 02:15:13.605 TESTAMENT THAT THESE TAX 02:15:13.672 --> 02:15:15.407 INCENTIVES WORK. MY FACILITY 02:15:15.474 --> 02:15:17.275 WAS THE BIGGEST PROJECT THAT WE 02:15:17.342 --> 02:15:18.343 WORKED ON THIS YEAR THAT 02:15:18.410 --> 02:15:19.845 GENERATED THE MOST REVENUE FOR 02:15:19.911 --> 02:15:21.913 MY BUSINESS WAS A FILM CALLED 02:15:21.980 --> 02:15:24.783 SPONSOR BY APPLE, WHICH WAS 02:15:24.850 --> 02:15:27.352 AWARDED THE TAX INCENTIVE. AND 02:15:27.419 --> 02:15:30.222 THAT WAS ONLY ONE PROJECT. SO 02:15:30.288 --> 02:15:32.691 IF WE EXPAND THE PROGRAM, IF WE 02:15:32.757 --> 02:15:34.860 MAKE IT EASY FOR STUDIOS TO 02:15:34.926 --> 02:15:37.729 CHOOSE CALIFORNIA AS THEIR 02:15:37.796 --> 02:15:41.166 DESTINATION, WE CAN MULTIPLY 02:15:41.233 --> 02:15:42.801 THAT NUMBER FOR COMPANIES LIKE 02:15:42.868 --> 02:15:44.202 MINE. THANK YOU SO MUCH. THE 02:15:44.269 --> 02:15:46.171 LAST THING THAT I WILL SAY THAT 02:15:46.238 --> 02:15:47.405 I WANT TO LEAVE YOU WITH, ONE 02:15:47.472 --> 02:15:49.174 OF THE BIGGEST LESSONS THAT I 02:15:49.241 --> 02:15:50.308 LEARNED THROUGH THIS JOURNEY IS 02:15:50.375 --> 02:15:52.143 THAT WHEN YOU HAVE GOVERNMENT, 02:15:52.210 --> 02:15:54.045 WHEN YOU HAVE INDUSTRY, WHEN 02:15:54.112 --> 02:15:55.680 YOU HAVE LABOR, AND WHEN YOU 02:15:55.747 --> 02:15:58.250 HAVE COALITIONS ALIGNED AND 02:15:58.316 --> 02:16:00.418 WORKING TOGETHER FOR ONE COMMON 02:16:00.485 --> 02:16:03.288 GOAL, WE ARE UNSTOPPABLE. SO 02:16:03.355 --> 02:16:04.556 THANK YOU SO MUCH FOR GIVING US 02:16:04.623 --> 02:16:07.325 THE PLATFORM TO LAUNCH THIS 02:16:07.392 --> 02:16:09.761 ADVOCACY EFFORTS. THANK YOU 02:16:09.828 --> 02:16:13.999 MARIEL. I'D NOW LIKE TO 02:16:14.065 --> 02:16:15.901 RECOGNIZE ARLEN VALDIVIA, VICE 02:16:15.967 --> 02:16:16.968 PRESIDENT OF STATE GOVERNMENT 02:16:17.035 --> 02:16:17.736 AFFAIRS WITH THE MOTION 02:16:17.802 --> 02:16:19.504 PICTURES ASSOCIATION. GOOD 02:16:19.571 --> 02:16:21.172 AFTERNOON, CHAIRMAN AND MEMBERS 02:16:21.239 --> 02:16:22.307 OF THE SELECT COMMITTEE. FOR 02:16:22.374 --> 02:16:24.075 THOSE OF YOU THAT DON'T KNOW ME, 02:16:24.142 --> 02:16:25.110 I'M ARLEN VALDIVIA, VICE 02:16:25.176 --> 02:16:26.211 PRESIDENT OF STATE GOVERNMENT 02:16:26.278 --> 02:16:27.279 AFFAIRS AT THE MOTION PICTURE 02:16:27.345 --> 02:16:28.914 ASSOCIATION, ON BEHALF OF THE 02:16:28.980 --> 02:16:30.115 MPAA AND ITS MEMBER COMPANIES, 02:16:30.181 --> 02:16:31.249 THANK YOU FOR THE OPPORTUNITY 02:16:31.316 --> 02:16:32.117 TO PARTICIPATE IN THIS 02:16:32.183 --> 02:16:33.885 IMPORTANT DISCUSSION. FIRST, 02:16:33.952 --> 02:16:34.986 LET ME START OFF BY THANKING 02:16:35.053 --> 02:16:36.521 YOU, THE MEMBERS OF THIS 02:16:36.588 --> 02:16:37.622 COMMITTEE, AS WELL AS THE 02:16:37.689 --> 02:16:38.657 LEGISLATURE AND GOVERNOR NEWSOM, 02:16:38.723 --> 02:16:40.392 FOR YOUR CONTINUED SUPPORT OF 02:16:40.458 --> 02:16:43.261 THIS ICONIC INDUSTRY. AS THE 02:16:43.328 --> 02:16:44.329 HISTORIC HOME OF THE 02:16:44.396 --> 02:16:45.397 ENTERTAINMENT INDUSTRY, 02:16:45.463 --> 02:16:46.831 CALIFORNIA HAS WORLD CLASS 02:16:46.898 --> 02:16:48.300 CREWS, UNMATCHED CREATIVE 02:16:48.366 --> 02:16:50.001 TALENT AND INCREDIBLE LOCATIONS. 02:16:50.068 --> 02:16:51.970 BUT IN RECENT YEARS, CALIFORNIA 02:16:52.037 --> 02:16:53.138 HAS FACED WHAT THE LOS ANGELES 02:16:53.204 --> 02:16:54.472 TIMES RECENTLY CALLED A 02:16:54.539 --> 02:16:56.241 PRODUCTION CRISIS, WITH TENS OF 02:16:56.308 --> 02:16:57.709 THOUSANDS OF ENTERTAINMENT JOBS 02:16:57.776 --> 02:16:58.910 LOST AND DOZENS OF BUSINESSES 02:16:58.977 --> 02:17:00.512 THAT SERVICE THE INDUSTRY. 02:17:00.579 --> 02:17:02.480 DOWNSIZING OR CLOSING. YOU ALL 02:17:02.547 --> 02:17:03.815 KNOW THE SIGNIFICANT IMPACT OF 02:17:03.882 --> 02:17:05.650 THIS PRODUCTION CRISIS HAS HAD 02:17:05.717 --> 02:17:07.085 ON CALIFORNIA WORKERS AND 02:17:07.152 --> 02:17:07.886 BUSINESSES, BECAUSE MANY OF 02:17:07.953 --> 02:17:09.921 THEM ARE. YOUR CONSTITUENTS IN 02:17:09.988 --> 02:17:11.356 CALIFORNIA HAS RESPONDED WITH 02:17:11.423 --> 02:17:12.791 MEANINGFUL IMPROVEMENTS TO ITS 02:17:12.857 --> 02:17:14.192 FILM AND TELEVISION TAX CREDIT 02:17:14.259 --> 02:17:15.327 PROGRAM, PARTICULARLY THROUGH 02:17:15.393 --> 02:17:17.896 THE CHANGES ENACTED IN 2025 AND 02:17:17.963 --> 02:17:20.432 2026. THESE CHANGES ARE 02:17:20.498 --> 02:17:21.433 DEMONSTRATING THAT A STRONGER 02:17:21.499 --> 02:17:22.701 INCENTIVE CAN BRING PRODUCTION 02:17:22.767 --> 02:17:24.803 BACK TO THE STATE. WE SAW IT IN 02:17:24.869 --> 02:17:26.237 THE FIRST APPLICATION WINDOW OF 02:17:26.304 --> 02:17:28.273 THE 4.0 PROGRAM, WHERE THE CFC 02:17:28.340 --> 02:17:30.775 SAW AN 82% JUMP IN APPLICATIONS, 02:17:30.842 --> 02:17:32.177 AND IN THE FIRST YEAR OF THE 02:17:32.243 --> 02:17:34.045 PROGRAM, APPROVED 170 PROJECTS, 02:17:34.112 --> 02:17:36.247 WHICH COLLECTIVELY REFLECT 6.6 02:17:36.314 --> 02:17:37.582 BILLION IN DIRECT PRODUCTION 02:17:37.649 --> 02:17:39.384 SPENDING IN CALIFORNIA. THAT 02:17:39.451 --> 02:17:41.586 PROGRESS IS ENCOURAGING, BUT 02:17:41.653 --> 02:17:43.021 THE PROGRAM IS CURRENTLY 02:17:43.088 --> 02:17:44.089 STRUCTURED, IS STILL NOT 02:17:44.155 --> 02:17:45.557 COMPETITIVE OR PREDICTABLE 02:17:45.624 --> 02:17:46.691 ENOUGH TO FULLY ADDRESS THE 02:17:46.758 --> 02:17:47.993 SIGNIFICANT LOSSES OF FILM AND 02:17:48.059 --> 02:17:49.094 TELEVISION PRODUCTION TO OTHER 02:17:49.160 --> 02:17:50.595 REGIONS. WE'VE ALL SEEN THE 02:17:50.662 --> 02:17:51.663 VARIOUS ARTICLES ABOUT 02:17:51.730 --> 02:17:52.364 CALIFORNIA LOSING ITS 02:17:52.430 --> 02:17:53.865 COMPETITIVE EDGE TO OTHER 02:17:53.932 --> 02:17:55.266 COUNTRIES AND STATES, MOST 02:17:55.333 --> 02:17:57.135 NOTABLY NEW YORK. THE PRINCIPAL 02:17:57.202 --> 02:17:58.470 LIMITATION OF THE PROGRAM IS 02:17:58.536 --> 02:17:59.904 UNCERTAINTY, WHICH I THINK 02:17:59.971 --> 02:18:01.006 FOLKS HAVE ADDRESSED ON THIS 02:18:01.072 --> 02:18:03.174 PANEL. THE PROGRAM IS CAPPED 02:18:03.241 --> 02:18:04.342 SPECIFICALLY A FRONT END CAP, 02:18:04.409 --> 02:18:05.410 WHICH MEANS THAT THE FILM 02:18:05.477 --> 02:18:06.411 COMMISSION HAS TO CREATE 02:18:06.478 --> 02:18:07.512 MECHANISMS TO ALLOCATE 02:18:07.579 --> 02:18:08.947 AVAILABLE CREDITS THROUGH 02:18:09.014 --> 02:18:10.448 DESIGNATED APPLICATION WINDOWS. 02:18:10.515 --> 02:18:11.349 AND BECAUSE MORE PRODUCTIONS 02:18:11.416 --> 02:18:12.917 ARE APPLYING THE AVAILABLE TAX 02:18:12.984 --> 02:18:13.752 CREDITS, THERE IS A RANKING 02:18:13.818 --> 02:18:15.453 PROCESS TO PRIORITIZE WHICH 02:18:15.520 --> 02:18:16.454 PRODUCTIONS GET INTO THE 02:18:16.521 --> 02:18:17.589 PROGRAM. AND THIS MEANS THAT 02:18:17.656 --> 02:18:19.024 THE FILM COMMISSION IS TURNING 02:18:19.090 --> 02:18:20.425 AWAY PRODUCTIONS BECAUSE THE 02:18:20.492 --> 02:18:22.260 PROGRAM IS OVERSUBSCRIBED AND 02:18:22.327 --> 02:18:23.328 PRODUCERS DO NOT HAVE THE 02:18:23.395 --> 02:18:24.362 CERTAINTY THAT THEY'LL BE ABLE 02:18:24.429 --> 02:18:26.231 TO APPLY FOR AND RECEIVE THE 02:18:26.297 --> 02:18:28.033 CREDIT, EVEN WHEN THEY MEET THE 02:18:28.099 --> 02:18:28.867 QUALIFYING CRITERIA. WE JUST 02:18:28.933 --> 02:18:30.402 HEARD BETSY'S STORY, WHICH SORT 02:18:30.468 --> 02:18:32.737 OF HIGHLIGHTS THAT. SO 02:18:32.804 --> 02:18:33.772 ADDITIONALLY, CALIFORNIA IS THE 02:18:33.838 --> 02:18:34.906 ONLY MAJOR PRODUCTION HUB THAT 02:18:34.973 --> 02:18:36.074 DOES NOT OFFER, TO SOME DEGREE 02:18:36.141 --> 02:18:38.009 ABOVE THE LINE AS A QUALIFIED 02:18:38.076 --> 02:18:39.144 EXPENDITURE. THE PROGRAM 02:18:39.210 --> 02:18:41.012 SPECIFICALLY EXCLUDES ABOVE THE 02:18:41.079 --> 02:18:42.414 LINE, WHICH INCLUDES WRITERS, 02:18:42.480 --> 02:18:44.249 ACTORS, DIRECTORS AND PRODUCERS 02:18:44.315 --> 02:18:45.617 COMPENSATION FROM ELIGIBLE 02:18:45.684 --> 02:18:46.785 EXPENSES. THIS MEANS THAT A 02:18:46.851 --> 02:18:48.186 LARGE PERCENTAGE OF PRODUCTIONS 02:18:48.253 --> 02:18:50.388 TOTAL BUDGET IS AUTOMATICALLY 02:18:50.455 --> 02:18:51.356 DISQUALIFIED FROM GETTING AN 02:18:51.423 --> 02:18:52.524 INCENTIVE, AND ULTIMATELY 02:18:52.590 --> 02:18:53.591 DIMINISHES THE VALUE OF THE 02:18:53.658 --> 02:18:55.994 CREDIT. THIS, IN ADDITION TO 02:18:56.061 --> 02:18:58.263 THE DISCOUNTS OF THE REFUNDABLE 02:18:58.329 --> 02:18:59.397 CREDITS ON THE CAP OF THE 02:18:59.464 --> 02:19:00.465 OVERALL USAGE OF CORPORATE 02:19:00.532 --> 02:19:02.600 INCOME TAX CREDITS ANNUALLY 02:19:02.667 --> 02:19:04.002 FURTHER DILUTE THE VALUE OF THE 02:19:04.069 --> 02:19:06.838 CREDITS. AS A RESULT, THE 02:19:06.905 --> 02:19:07.872 STUDIOS ARE NOT BUDGETING TO 02:19:07.939 --> 02:19:09.841 GET A 35% TAX CREDIT. THE VALUE 02:19:09.908 --> 02:19:10.909 OF THE CREDIT, ONCE IT'S 02:19:10.975 --> 02:19:12.010 MONETIZED ENDS UP BEING MUCH 02:19:12.077 --> 02:19:14.846 LOWER BY AT LEAST 10%. THIS 02:19:14.913 --> 02:19:15.480 SIGNIFICANTLY CONTRIBUTES TO 02:19:15.547 --> 02:19:16.614 THE STATE'S STRUGGLE AGAINST 02:19:16.681 --> 02:19:18.083 ITS COMPETITORS, BOTH 02:19:18.149 --> 02:19:19.551 NATIONALLY AND GLOBALLY. AS 02:19:19.617 --> 02:19:20.719 YOU'VE HEARD IN THE PREVIOUS 02:19:20.785 --> 02:19:22.487 PANEL, AS YOU'VE HEARD FROM MY 02:19:22.554 --> 02:19:23.588 COLLEAGUES ON THIS PANEL, THAT 02:19:23.655 --> 02:19:24.589 WHILE MEANINGFUL CHANGE HAS 02:19:24.656 --> 02:19:25.690 BEEN MADE, THERE NEEDS TO BE 02:19:25.757 --> 02:19:27.592 MORE TO BE DONE TO MAKE 02:19:27.659 --> 02:19:28.593 CALIFORNIA COMPETITIVE. I LOOK 02:19:28.660 --> 02:19:29.761 FORWARD TO OUR CONTINUED WORK 02:19:29.828 --> 02:19:30.762 WITH ASSEMBLY, MEMBERS OF THE 02:19:30.829 --> 02:19:32.497 MEMBERS OF THIS COMMITTEE, THE 02:19:32.564 --> 02:19:33.498 ADMINISTRATION, TO ENSURE THAT 02:19:33.565 --> 02:19:34.599 CALIFORNIA CAN BUILD ON THE 02:19:34.666 --> 02:19:35.500 PROGRESS ALREADY MADE, 02:19:35.567 --> 02:19:36.101 STRAIGHTEN THE PROGRAM'S 02:19:36.167 --> 02:19:37.135 ECONOMIC IMPACT, AND PROVIDE 02:19:37.202 --> 02:19:38.036 PRODUCERS WITH THE CERTAINTY 02:19:38.103 --> 02:19:40.405 THEY NEED TO CHOOSE CALIFORNIA. 02:19:40.472 --> 02:19:42.340 THANK YOU FOR YOUR TIME. THANK 02:19:42.407 --> 02:19:45.643 YOU. APPRECIATE THAT. OKAY, WE 02:19:45.710 --> 02:19:48.012 HAVE ABOUT 15 MINUTES FOR 02:19:48.079 --> 02:19:49.714 QUESTIONS. I'D ACTUALLY LIKE TO 02:19:49.781 --> 02:19:52.584 GIVE WELCOME ASSEMBLY MEMBER 02:19:52.650 --> 02:19:54.285 SCHIAVO, WHO JUST WALKED IN THE 02:19:54.352 --> 02:19:55.520 DOOR AND GIVE HER JUST A COUPLE 02:19:55.587 --> 02:19:56.554 MINUTES TO MAKE SOME 02:19:56.621 --> 02:19:57.589 INTRODUCTORY COMMENTS, IF YOU'D 02:19:57.655 --> 02:19:59.424 LIKE TO DO THAT NOW, OR WOULD 02:19:59.491 --> 02:20:01.326 YOU LIKE TO WAIT FOR A FEW 02:20:01.393 --> 02:20:02.527 MINUTES AND GET SETTLED? OKAY, 02:20:02.594 --> 02:20:06.965 GREAT. OKAY. THANK YOU. I WANT 02:20:07.031 --> 02:20:08.133 TO THANK THE CHAIR. FIRST OF 02:20:08.199 --> 02:20:09.968 ALL, THANK YOU SO MUCH FOR 02:20:10.034 --> 02:20:12.403 INCLUDING ME IN THIS 02:20:12.470 --> 02:20:14.239 CONVERSATION. THIS IS A REALLY 02:20:14.305 --> 02:20:17.075 IMPORTANT ISSUE IN MY COMMUNITY. 02:20:17.142 --> 02:20:18.343 FOR THOSE OF YOU WHO DON'T KNOW 02:20:18.409 --> 02:20:20.345 ME, I REPRESENT THE 40TH 02:20:20.411 --> 02:20:21.746 ASSEMBLY DISTRICT, WHICH 02:20:21.813 --> 02:20:23.181 INCLUDES SANTA CLARITA, WHICH 02:20:23.248 --> 02:20:26.084 WE LIKE TO CALL HOLLYWOOD NORTH. 02:20:26.151 --> 02:20:30.054 AND AND I WAS LISTENING TO THE 02:20:30.121 --> 02:20:31.489 PANEL ON THE WAY IN. I WAS 02:20:31.556 --> 02:20:32.690 LISTENING AS I WAS TRAVELING 02:20:32.757 --> 02:20:35.193 HERE FROM SACRAMENTO TODAY, AND 02:20:35.260 --> 02:20:39.030 IT WAS ESPECIALLY PAINFUL TO 02:20:39.097 --> 02:20:41.232 HEAR YOU SPEAK, BETSY, BECAUSE 02:20:41.299 --> 02:20:43.067 I KNOW THERE WERE CONVERSATIONS 02:20:43.134 --> 02:20:44.969 WITH STUDIOS IN SANTA CLARITA 02:20:45.036 --> 02:20:49.107 AND IN MY COMMUNITY. YEAH. ALSO, 02:20:49.174 --> 02:20:51.109 WHEN YOU THINK ABOUT, I MEAN, 02:20:51.176 --> 02:20:52.277 THE THING THAT REALLY BREAKS MY 02:20:52.343 --> 02:20:54.045 HEART IS THE AREA AROUND THE 02:20:54.112 --> 02:20:56.281 MICROPHONE WHERE WE ALSO, SORRY, 02:20:56.347 --> 02:20:57.482 WHAT ALSO BROKE OUR HEARTS, 02:20:57.549 --> 02:20:59.250 JUST AS AN ANECDOTE I DIDN'T 02:20:59.317 --> 02:21:01.052 INCLUDE WAS ONE OF THE THINGS 02:21:01.119 --> 02:21:02.053 WE WERE INTENDING. WE WERE 02:21:02.120 --> 02:21:03.221 LOOKING FOR PLACES THAT LOOK 02:21:03.288 --> 02:21:04.956 LIKE WEST TEXAS. AND THERE'S A 02:21:05.023 --> 02:21:06.090 TINY LITTLE TOWN A LOT OF 02:21:06.157 --> 02:21:08.092 PEOPLE HAVE USED AS A WESTERN 02:21:08.159 --> 02:21:10.395 TOWN, WHICH IS DEAD NOW BECAUSE 02:21:10.461 --> 02:21:12.530 OF ICE AND BECAUSE OF THE 02:21:12.597 --> 02:21:14.332 FARMING CRISIS. AND OUR IDEA 02:21:14.399 --> 02:21:17.602 WAS TO TAKE THAT OVER, START TO 02:21:17.669 --> 02:21:21.940 HIRE LOCALS AND VIGORATE THAT 02:21:22.006 --> 02:21:24.409 AREA. SO NOT ONLY WERE WE 02:21:24.475 --> 02:21:25.844 HAVING TO DISAPPOINT SANTA 02:21:25.910 --> 02:21:27.312 CLARITA AND THE WONDERFUL 02:21:27.378 --> 02:21:29.113 STAGES THERE, BUT THIS WEIRD 02:21:29.180 --> 02:21:30.548 PART OF ME FELT LIKE WE WERE 02:21:30.615 --> 02:21:31.649 LETTING DOWN THIS PART OF 02:21:31.716 --> 02:21:32.750 CALIFORNIA. WE COULD HAVE 02:21:32.817 --> 02:21:34.485 HELPED. YEAH, THAT'S JUST SOME 02:21:34.552 --> 02:21:36.287 ICING ON A KIND OF CRAPPY CAKE. 02:21:36.354 --> 02:21:39.490 SORRY. RIGHT. I KNOW IT'S IT'S 02:21:39.557 --> 02:21:40.625 INCREDIBLY HEARTBREAKING, AND I 02:21:40.692 --> 02:21:42.093 HAVE TO GIVE CREDIT TO THE 02:21:42.160 --> 02:21:43.761 CHAIR BECAUSE I KNOW THERE ARE 02:21:43.828 --> 02:21:45.063 A LOT OF CONVERSATIONS EXACTLY 02:21:45.129 --> 02:21:46.898 AS YOU ALL WERE GOING THROUGH 02:21:46.965 --> 02:21:48.600 THIS AND TRYING TO MAKE 02:21:48.666 --> 02:21:50.301 DECISIONS AND FIGURE OUT WHERE 02:21:50.368 --> 02:21:52.503 THINGS STOOD THAT WE WERE 02:21:52.570 --> 02:21:54.105 PUSHING AT THE END OF SESSION 02:21:54.172 --> 02:21:56.474 TO IMPROVE UPON THE THE TAX 02:21:56.541 --> 02:21:58.643 CREDIT, AND THE CHAIR WAS 02:21:58.710 --> 02:21:59.844 WORKING ALL THE TIME, WILLING 02:21:59.911 --> 02:22:03.681 TO HAVE 10 P.M. ZOOMS WITH 02:22:03.748 --> 02:22:05.250 PEOPLE STUDIOS IN MY COMMUNITY 02:22:05.316 --> 02:22:07.218 TO TALK ABOUT HOW WE COULD MAKE 02:22:07.285 --> 02:22:08.286 SURE THAT IT'S SOMETHING THAT 02:22:08.353 --> 02:22:11.956 WAS WORKABLE FOR FOLKS. SO, YOU 02:22:12.023 --> 02:22:14.459 KNOW, I'M REALLY HERE TODAY TO 02:22:14.525 --> 02:22:15.860 HEAR FROM ALL OF YOU BECAUSE I 02:22:15.927 --> 02:22:18.162 THINK THAT THERE'S SO MUCH MORE 02:22:18.229 --> 02:22:20.632 THAT WE CAN AND MUST DO. WE 02:22:20.698 --> 02:22:23.101 CANNOT GIVE UP ON THIS INDUSTRY 02:22:23.167 --> 02:22:25.637 IN LA. I'VE TALKED TO WRITERS 02:22:25.703 --> 02:22:27.438 IN MY COMMUNITY WHO ARE DRIVING 02:22:27.505 --> 02:22:32.477 UBER, AND IT IS HEARTBREAKING. 02:22:32.543 --> 02:22:35.346 IT'S REALLY HEARTBREAKING. AND 02:22:35.413 --> 02:22:37.916 SO, YOU KNOW, THIS IS THIS IS A 02:22:37.982 --> 02:22:39.651 LOT OF WORKERS. THIS IS A LOT 02:22:39.717 --> 02:22:41.552 OF FAMILIES. I HEARD, YOU KNOW, 02:22:41.619 --> 02:22:42.887 YOU TALK ABOUT LEAVING YOUR 02:22:42.954 --> 02:22:47.992 BABY AFTER JUST DAYS. THIS IS, 02:22:48.059 --> 02:22:50.795 YOU KNOW, MY KIDS, GOOD FRIENDS, 02:22:50.862 --> 02:22:52.964 FAMILY WHO HAS HAD TO GO TO 02:22:53.031 --> 02:22:54.399 ALASKA AND ALL OVER THE COUNTRY 02:22:54.465 --> 02:22:57.936 TO DO THIS WORK. AND SO WE KNOW 02:22:58.002 --> 02:23:00.171 THAT THIS IS AN INDUSTRY WE 02:23:00.238 --> 02:23:02.707 CANNOT GIVE UP ON. I WILL SAY 02:23:02.774 --> 02:23:06.678 ALSO THAT I HAVE HEARD DIRECTLY 02:23:06.744 --> 02:23:08.146 FROM PEOPLE WITHIN THE INDUSTRY 02:23:08.212 --> 02:23:09.314 THAT THERE ARE SOME STUDIOS 02:23:09.380 --> 02:23:10.982 THAT DON'T EVEN TRY TO PENCIL 02:23:11.049 --> 02:23:13.885 OUT CALIFORNIA. AND I SEE 02:23:13.952 --> 02:23:19.657 NODDING HEADS. AND SO AS WE 02:23:19.724 --> 02:23:22.493 STRUGGLE AS A LEGISLATURE TO 02:23:22.560 --> 02:23:23.761 PROTECT THIS INDUSTRY AND FIGHT 02:23:23.828 --> 02:23:25.730 FOR THIS INDUSTRY, WE NEED THE 02:23:25.797 --> 02:23:27.865 INDUSTRY TO FIGHT FOR IT TO. 02:23:27.932 --> 02:23:30.401 AND I THINK THAT IT IS CRITICAL 02:23:30.468 --> 02:23:31.936 THAT CALIFORNIA IS ALWAYS 02:23:32.003 --> 02:23:34.005 LOOKED AT AND LA IS ALWAYS 02:23:34.072 --> 02:23:36.507 LOOKED AT. IF WE ARE GOING TO 02:23:36.574 --> 02:23:38.276 BE STEPPING UP WITH TAXPAYER 02:23:38.343 --> 02:23:40.111 DOLLARS TO SUPPORT PEOPLE IN 02:23:40.178 --> 02:23:42.313 OUR COMMUNITY, AND WE KNOW THAT 02:23:42.380 --> 02:23:44.082 AT THE END OF THE DAY, THESE 02:23:44.148 --> 02:23:47.018 DOLLARS COME BACK 555 TIMES. IS 02:23:47.085 --> 02:23:50.254 IT THAT, YOU KNOW, WE SEE THAT 02:23:50.321 --> 02:23:52.724 INVESTMENT COME BACK TO US? SO 02:23:52.790 --> 02:23:54.158 IT'S ONE OF THE SMARTEST 02:23:54.225 --> 02:23:55.560 INVESTMENTS I THINK THE STATE 02:23:55.626 --> 02:23:59.897 CAN MAKE. BUT EVERYBODY HAS TO 02:23:59.964 --> 02:24:01.699 BE TRYING TO SOLVE THIS PROBLEM. 02:24:01.766 --> 02:24:03.501 AND IT CANNOT BE SOMETHING THAT 02:24:03.568 --> 02:24:07.538 IS PUT UPON THE STATE TO SOLVE. 02:24:07.605 --> 02:24:09.607 IF THE INDUSTRY IS NOT GOING TO 02:24:09.674 --> 02:24:10.775 TRY TO BE A PART OF THE 02:24:10.842 --> 02:24:13.244 SOLUTION AS WELL. AND I AM 02:24:13.311 --> 02:24:15.380 GRATEFUL THAT YOU AND SHONDA 02:24:15.446 --> 02:24:17.582 RHIMES HAVE WORKED SO HARD TO 02:24:17.648 --> 02:24:19.684 STAY HERE IN, IN CALIFORNIA AND 02:24:19.751 --> 02:24:22.186 IN LOS ANGELES. AND I KNOW SO 02:24:22.253 --> 02:24:24.122 MANY PEOPLE HAVE HAVE DONE THAT 02:24:24.188 --> 02:24:25.490 BECAUSE IT'S THEIR HOME AND 02:24:25.556 --> 02:24:27.291 BECAUSE WE HAVE INCREDIBLE 02:24:27.358 --> 02:24:31.396 TALENT. AND, AND I LOOK FORWARD 02:24:31.462 --> 02:24:32.964 TO WHAT WE'RE GOING TO BE ABLE 02:24:33.031 --> 02:24:34.866 TO DO IN THIS COMING YEAR TO 02:24:34.932 --> 02:24:36.134 MAKE SURE THAT WE CAN MAKE MORE 02:24:36.200 --> 02:24:37.969 GAINS TO TO ENSURE THAT THIS 02:24:38.036 --> 02:24:41.339 WORK STAYS HERE. THANK YOU. 02:24:41.406 --> 02:24:44.909 THANK YOU, THANK YOU. I'D LIKE 02:24:44.976 --> 02:24:47.078 TO RECOGNIZE ASSEMBLY MEMBER 02:24:47.145 --> 02:24:48.279 GIBSON, WHO HAD SOME QUESTIONS. 02:24:48.346 --> 02:24:49.647 YEAH, THANK YOU VERY MUCH. I 02:24:49.714 --> 02:24:51.149 WANT TO APOLOGIZE IN ADVANCE. I 02:24:51.215 --> 02:24:53.117 WON'T BE ABLE TO STAY FOR THE 02:24:53.184 --> 02:24:54.218 NEXT PANEL. NOT ALL OF IT, 02:24:54.285 --> 02:24:56.487 ANYWAY. BUT I HAVEN'T I THIS IS 02:24:56.554 --> 02:24:58.923 A RUNNING THEME AND I, I WANT 02:24:58.990 --> 02:25:01.726 TO THROW OUT A QUESTION TO THIS 02:25:01.793 --> 02:25:06.464 PANEL, AND THAT IS ELIGIBILITY. 02:25:06.531 --> 02:25:09.067 I KNOW THAT BETSY TALKED ABOUT 02:25:09.133 --> 02:25:11.102 IN HER COMMENTS THAT THE STATE 02:25:11.169 --> 02:25:14.739 DIDN'T CONSIDER ABOUT 02:25:14.806 --> 02:25:16.874 ELIGIBILITY YOU MADE, AND THEN 02:25:16.941 --> 02:25:18.409 YOU TALKED ABOUT YOU GUYS HAD 02:25:18.476 --> 02:25:21.145 TO WAIT, AND THEN YOU WAS TOLD 02:25:21.212 --> 02:25:24.816 THAT WE RAN OUT OF MONEY. AND 02:25:24.882 --> 02:25:27.351 THEN I'M ALSO HEARING THE 02:25:27.418 --> 02:25:31.255 PREVIOUS PANEL THAT AROUND THE 02:25:31.322 --> 02:25:33.191 ELIGIBILITY AND THE RULES NEEDS 02:25:33.257 --> 02:25:35.593 TO BE CHANGED. AM I MAKING 02:25:35.660 --> 02:25:38.429 SENSE TO YOU? YEAH. I MEAN, I 02:25:38.496 --> 02:25:39.530 CAN'T SPEAK TO THE EARLIER 02:25:39.597 --> 02:25:40.998 PANEL, OBVIOUSLY. NO, NO. RIGHT. 02:25:41.065 --> 02:25:42.767 BUT BUT I THINK THAT WHAT I WAS 02:25:42.834 --> 02:25:44.635 SPEAKING TO, AND BY THE WAY, 02:25:44.702 --> 02:25:45.803 I'M JUST GOING TO QUALIFY 02:25:45.870 --> 02:25:47.672 MYSELF AND SAY I'M NOT A LINE 02:25:47.738 --> 02:25:48.840 PRODUCER. I WAS NOT THE PERSON 02:25:48.906 --> 02:25:50.641 IN THE TRENCHES. I WAS THE 02:25:50.708 --> 02:25:51.776 PERSON KIND OF NEXT TO THE 02:25:51.843 --> 02:25:53.010 PERSON IN THE TRENCHES. THAT'S 02:25:53.077 --> 02:25:54.779 FINE. SO IF I MISSPEAK AT ALL, 02:25:54.846 --> 02:25:56.681 I APOLOGIZE TO MY COHORTS AND 02:25:56.747 --> 02:25:57.715 ANYBODY AROUND. BUT WHAT MY 02:25:57.782 --> 02:26:00.084 UNDERSTANDING WAS THAT WE WERE 02:26:00.151 --> 02:26:01.886 TOLD WHEN WE WERE DENIED THE 02:26:01.953 --> 02:26:03.654 CREDIT FIRST GO ROUND THIS 02:26:03.721 --> 02:26:05.089 SUMMER, THAT IT WAS BASED ON 02:26:05.156 --> 02:26:07.625 THE FACT OF THE NUMBER OF JOBS 02:26:07.692 --> 02:26:10.895 THAT WE WOULD BE CREATING FOR 02:26:10.962 --> 02:26:12.930 PEOPLE WORKING. SO THE ONLY 02:26:12.997 --> 02:26:14.799 SHOWS THAT ACTUALLY, FROM MY 02:26:14.866 --> 02:26:16.634 UNDERSTANDING, GOT CREDIT FOR 02:26:16.701 --> 02:26:19.170 NEW NEW BUSINESS WERE ONES THAT 02:26:19.237 --> 02:26:20.938 WERE HIRING THE MOST PEOPLE. 02:26:21.005 --> 02:26:23.107 AND WE WERE ENCOURAGED WHEN WE 02:26:23.174 --> 02:26:26.677 CAME BACK, ABC WITH US AS WELL 02:26:26.744 --> 02:26:28.546 TO FIGURE OUT WHAT IS THE 02:26:28.613 --> 02:26:30.314 LARGEST NUMBER WE CAN TO HIRE, 02:26:30.381 --> 02:26:31.949 WHICH ALSO OBVIOUSLY INCLUDES 02:26:32.016 --> 02:26:33.784 HOW MANY EPISODES ARE YOU 02:26:33.851 --> 02:26:34.752 PRODUCING? SO CAN WE PRODUCE 02:26:34.819 --> 02:26:36.521 MORE EPISODES? WHAT ARE THE 02:26:36.587 --> 02:26:37.655 OTHER KINDS OF PEOPLE THAT YOU 02:26:37.722 --> 02:26:39.524 CAN HIRE? I THINK THE MAJOR 02:26:39.590 --> 02:26:40.725 POINT OF WHAT I'M SAYING IS 02:26:40.791 --> 02:26:43.661 THAT I FIND IT INCREDIBLY 02:26:43.728 --> 02:26:45.363 LIMITING, THAT THE ONLY THING 02:26:45.429 --> 02:26:47.598 YOU LOOK AT WITH EACH 02:26:47.665 --> 02:26:49.367 APPLICATION IS THE NUMBER OF 02:26:49.433 --> 02:26:51.602 PEOPLE, BECAUSE WHEN YOU LOOK 02:26:51.669 --> 02:26:55.173 AT US, WE HAVE LONG RUNNING 02:26:55.239 --> 02:26:56.607 SHOWS. WE HAVE AN INCREDIBLY 02:26:56.674 --> 02:26:58.042 GOOD TRACK RECORD. I'M ONLY 02:26:58.109 --> 02:26:58.976 SPEAKING FOR US. I'M SURE THERE 02:26:59.043 --> 02:27:00.878 ARE MANY OTHER SHOWS, BUT WHAT 02:27:00.945 --> 02:27:03.114 IT DOES IS IT PUTS A BIAS ON IN 02:27:03.181 --> 02:27:05.950 AND OUT BUSINESSES BECAUSE 02:27:06.017 --> 02:27:07.051 MAINLY THAT MONEY IS BEING 02:27:07.118 --> 02:27:08.886 SPENT ON WORLD CREATING, ON 02:27:08.953 --> 02:27:10.821 WORLD BUILDING. SO IF YOU HAVE 02:27:10.888 --> 02:27:13.191 A SHOW ABOUT A SPACE CENTER, 02:27:13.257 --> 02:27:13.991 YOU KNOW, YOU'RE GOING TO HAVE 02:27:14.058 --> 02:27:15.593 A LOT MORE PEOPLE WORKING ON 02:27:15.660 --> 02:27:16.794 THAT SHOW THAN YOU MIGHT HAVE 02:27:16.861 --> 02:27:18.663 ON A MEDICAL SHOW. BUT IF THAT 02:27:18.729 --> 02:27:20.531 MEDICAL SHOW GOES ON FOR SIX 02:27:20.598 --> 02:27:21.599 YEARS PLUS, GRAY'S ANATOMY IS 02:27:21.666 --> 02:27:23.534 NOW IN ITS 22ND YEAR. I LOST 02:27:23.601 --> 02:27:24.669 COUNT BECAUSE I'M TOO OLD AT 02:27:24.735 --> 02:27:27.939 THIS POINT, BUT YOU FIGURE THAT 02:27:28.005 --> 02:27:30.041 WHAT THE THE THE SMALLEST 02:27:30.107 --> 02:27:31.809 NUMBER WOULD BE A SIX YEAR 02:27:31.876 --> 02:27:33.678 COMMITMENT. AND I KNOW FROM OUR 02:27:33.744 --> 02:27:36.347 POINT OF VIEW THAT WE CONTINUE 02:27:36.414 --> 02:27:38.716 TO GROW THE NUMBER OF PEOPLE 02:27:38.783 --> 02:27:40.818 THAT WE WORK WITH. IT'S ALSO 02:27:40.885 --> 02:27:41.953 WHERE ARE YOU SHOOTING IN THE 02:27:42.019 --> 02:27:43.387 LOCAL BUSINESSES THAT STILL 02:27:43.454 --> 02:27:46.224 HAVE LOYAL CONNECTIONS WITH YOU? 02:27:46.290 --> 02:27:48.826 SO OUR BIG THING INITIALLY WAS 02:27:48.893 --> 02:27:50.194 WHAT ARE THE STANDARDS UNDER 02:27:50.261 --> 02:27:53.497 WHICH YOU ARE JUDGING OUR 02:27:53.564 --> 02:27:54.899 QUALIFICATIONS FOR GETTING TAX 02:27:54.966 --> 02:27:57.101 CREDIT? AND THE RESPONSE WE GOT 02:27:57.168 --> 02:27:59.237 WAS, THE ONLY THING WE ARE 02:27:59.303 --> 02:28:00.471 USING IS THE NUMBER OF JOBS YOU 02:28:00.538 --> 02:28:02.807 HAVE WRITTEN. YOU HAVE ACTUALLY 02:28:02.873 --> 02:28:05.776 APPLIED TO SHOW US. SO I THINK 02:28:05.843 --> 02:28:07.411 WE PROBABLY NEED TO LOOK AT 02:28:07.478 --> 02:28:09.647 THAT. THOSE CRITERIA. YES. 02:28:09.714 --> 02:28:11.449 BECAUSE THOSE CRITERIA COULD BE 02:28:11.515 --> 02:28:14.719 SO RIGID AND SO RIGID THAT WE 02:28:14.785 --> 02:28:16.854 PUSHING SOME OF THAT INDUSTRY 02:28:16.921 --> 02:28:20.124 OUT AND NOT CONSIDERING SOME OF 02:28:20.191 --> 02:28:21.726 THAT WORK AND SOME OF THAT 02:28:21.792 --> 02:28:22.760 PRODUCTION IN CALIFORNIA. YEAH, 02:28:22.827 --> 02:28:24.095 I THINK QUESTIONS NEED TO BE 02:28:24.161 --> 02:28:26.163 ASKED. AT THE VERY LEAST, MY 02:28:26.230 --> 02:28:27.265 UNDERSTANDING, AS I SAID, THIS 02:28:27.331 --> 02:28:29.467 IS SECOND OR THIRD HAND. SO, 02:28:29.533 --> 02:28:31.269 YOU KNOW, I FEEL LIKE I'M 02:28:31.335 --> 02:28:32.703 PROBABLY I MAY BE GETTING 02:28:32.770 --> 02:28:34.605 SOMETHING WRONG, BUT I WAS I 02:28:34.672 --> 02:28:36.340 WAS THERE FOR MOST OF IT. AND 02:28:36.407 --> 02:28:37.908 MY UNDERSTANDING WAS IF IT'S, 02:28:37.975 --> 02:28:39.877 IF IT IS REALLY JUST ABOUT 02:28:39.944 --> 02:28:41.746 COUNTING, YOU HAVE TO 02:28:41.812 --> 02:28:42.913 UNDERSTAND WHAT IS THE FUTURE 02:28:42.980 --> 02:28:46.017 OF YOUR COUNTING, RIGHT? AND 02:28:46.083 --> 02:28:47.818 FOR A COMPANY LIKE OURS TO 02:28:47.885 --> 02:28:50.288 THINK THAT SO WILL BE THIS 02:28:50.354 --> 02:28:52.089 NUMBER OF EPISODES AND OUT. AND 02:28:52.156 --> 02:28:54.692 WE'RE NOT A GOOD INVESTMENT FOR 02:28:54.759 --> 02:28:57.061 CALIFORNIA. IT DIDN'T MAKE ANY 02:28:57.128 --> 02:28:58.663 SENSE TO US, AND WE KNEW 02:28:58.729 --> 02:28:59.730 SEVERAL OTHER PEOPLE IN THE 02:28:59.797 --> 02:29:01.532 SAME CATEGORY, ALL OF WHOM WERE 02:29:01.599 --> 02:29:02.700 TOLD, NO, IT'S ALL ABOUT NOW. 02:29:02.767 --> 02:29:04.568 TO ME, WHAT THAT MEANS IS YOU 02:29:04.635 --> 02:29:07.271 START TO CREATE JOBS WHERE YOU 02:29:07.338 --> 02:29:09.774 START TO TRY TO FIGURE OUT WAYS 02:29:09.840 --> 02:29:12.310 OF MAKING MORE JOBS. SO 02:29:12.376 --> 02:29:13.377 SOMEBODY SAID, WELL, ARE YOU 02:29:13.444 --> 02:29:14.445 REALLY, REALLY COUNTING 02:29:14.512 --> 02:29:15.513 ABSOLUTELY EVERYBODY THAT YOU 02:29:15.579 --> 02:29:17.381 MIGHT BE WORKING? AND IT BECAME 02:29:17.448 --> 02:29:19.450 SORT OF SILLY BECAUSE WE ALL 02:29:19.517 --> 02:29:21.018 KNOW SORT OF HOW MANY PEOPLE, 02:29:21.085 --> 02:29:22.353 BUT IT'S DOES THE CATERER HAVE 02:29:22.420 --> 02:29:24.889 A CATERER'S ASSISTANT? YOU KNOW, 02:29:24.955 --> 02:29:26.390 THAT'S WHERE YOU START TO GET 02:29:26.457 --> 02:29:28.492 INTO. AND I THINK THAT'S WHAT 02:29:28.559 --> 02:29:30.661 WAS THE THING FOR US THAT THAT 02:29:30.728 --> 02:29:32.430 SEEMED CRAZY. AND FOR OTHERS 02:29:32.496 --> 02:29:34.632 WHO HAVE HAD EITHER A TRACK 02:29:34.699 --> 02:29:36.767 RECORD, HAVE A PLAN OF ATTACK, 02:29:36.834 --> 02:29:39.670 HAD CONVERSATIONS HAD TO BE HAD, 02:29:39.737 --> 02:29:42.873 AND I THINK THINGS HAD TO BE 02:29:42.940 --> 02:29:45.443 EVALUATED IN A DIFFERENT WAY 02:29:45.509 --> 02:29:46.510 BECAUSE THERE'S SUBTLETIES TO 02:29:46.577 --> 02:29:47.978 THIS. AND AS I SAID, WHAT 02:29:48.045 --> 02:29:49.013 YOU'RE GOING WHAT YOU'RE WHAT 02:29:49.080 --> 02:29:51.182 YOU WILL DO. BECAUSE OF THE 02:29:51.248 --> 02:29:52.950 SPECULATION ON SERIES AS 02:29:53.017 --> 02:29:54.785 OPPOSED TO FILMS, IS YOU WILL 02:29:54.852 --> 02:29:58.389 ELIMINATE SERIES FROM YOUR YOUR 02:29:58.456 --> 02:30:01.659 LIST OF THINGS THAT CAN GET 02:30:01.726 --> 02:30:03.427 APPROVED BECAUSE THERE'S ALWAYS 02:30:03.494 --> 02:30:05.162 AN IF WITH A SERIES LIKE 02:30:05.229 --> 02:30:06.263 SOMETIMES WE'RE PICKED UP FOR 02:30:06.330 --> 02:30:07.865 TWO SEASONS, THERE'S USUALLY 02:30:07.932 --> 02:30:09.633 NOT AN IF FOR US, BUT FOR A LOT 02:30:09.700 --> 02:30:11.502 OF MY FRIENDS ON SHOWS, THERE 02:30:11.569 --> 02:30:13.404 ARE IFS. AND SO YOU SORT OF 02:30:13.471 --> 02:30:14.605 HAVE TO NOT ONLY BE BELIEVING 02:30:14.672 --> 02:30:16.006 IN THE PRESENT, BUT YOU'RE 02:30:16.073 --> 02:30:17.808 INVESTING IN THE FUTURE. AND I 02:30:17.875 --> 02:30:19.610 THINK THIS PAST SEASON WAS ALL 02:30:19.677 --> 02:30:21.178 ABOUT THE PRESENT AND NOT ABOUT 02:30:21.245 --> 02:30:22.980 THE FUTURE. AND THAT'S, TO ME, 02:30:23.047 --> 02:30:24.348 THE FUTURE OF CALIFORNIA AND 02:30:24.415 --> 02:30:25.983 ALL OF US STAYING HERE. SURE. 02:30:26.050 --> 02:30:27.118 MR. CHAIRMAN, I THINK SHE YEAH, 02:30:27.184 --> 02:30:32.189 I WAS I WANTED TO. BECAUSE 02:30:32.256 --> 02:30:33.691 ARLAN WAS FIRST AND THEN MARIEL. 02:30:33.758 --> 02:30:35.526 BUT LET'S GO IN THAT ORDER. I 02:30:35.593 --> 02:30:36.560 WAS JUST GOING TO SAY WHAT 02:30:36.627 --> 02:30:38.229 BETSY IS SAYING IS HIGHLIGHTING 02:30:38.295 --> 02:30:40.164 SORT OF THE ISSUE WITH A CAPPED 02:30:40.231 --> 02:30:41.265 PROGRAM. BECAUSE THE PROGRAM IS 02:30:41.332 --> 02:30:42.433 CAPPED, YOU HAVE TO LIMIT HOW 02:30:42.500 --> 02:30:44.168 MANY PEOPLE GET THE AVAILABLE 02:30:44.235 --> 02:30:45.536 TAX CREDIT. SO YOU HAVE TO 02:30:45.603 --> 02:30:47.638 CREATE. THIS IS WHY WE HAVE 02:30:47.705 --> 02:30:48.773 ALLOCATION WINDOWS. NOT 02:30:48.839 --> 02:30:49.940 EVERYBODY WHO'S READY TO GET TO 02:30:50.007 --> 02:30:52.143 GET A TAX CREDIT CAN APPLY WHEN 02:30:52.209 --> 02:30:54.078 THEY WANT TO. THEY HAVE TO WAIT 02:30:54.145 --> 02:30:55.045 FOR THOSE ALLOCATION PERIODS 02:30:55.112 --> 02:30:56.147 THAT THE FILM COMMISSION PUTS 02:30:56.213 --> 02:30:57.314 OUT. I BELIEVE IT'S ABOUT FOUR 02:30:57.381 --> 02:30:59.216 PLUS A YEAR, AND THEY WILL BE 02:30:59.283 --> 02:31:00.418 BASED ON WHETHER YOU'RE DOING 02:31:00.484 --> 02:31:02.186 TV OR FILM. AND THEN ONCE YOU 02:31:02.253 --> 02:31:04.021 GET IN, AS BETSY NOTED, THEN 02:31:04.088 --> 02:31:05.723 YOU ARE RANKED WITH OTHERS IN 02:31:05.790 --> 02:31:07.525 YOUR SAME GROUP. AND THOSE ARE 02:31:07.591 --> 02:31:09.727 BASED ON THE JOBS RATIO. AND SO 02:31:09.794 --> 02:31:11.195 IF YOU UNCAP THE PROGRAM, A LOT 02:31:11.262 --> 02:31:12.897 OF THESE BARRIERS TO ENTRY GO, 02:31:12.963 --> 02:31:14.698 BARRIERS TO ENTRY GO AWAY 02:31:14.765 --> 02:31:16.534 BECAUSE YOU'RE NOT RATIONING 02:31:16.600 --> 02:31:19.770 OUT $750 MILLION BECAUSE 02:31:19.837 --> 02:31:21.005 THERE'S MUCH MORE DEMAND THAN 02:31:21.071 --> 02:31:24.241 THERE IS TAX CREDITS. MURIEL, 02:31:24.308 --> 02:31:25.843 DID YOU WANT TO ADD SOMETHING? 02:31:25.910 --> 02:31:27.411 YES. JUST TO ADD TO THAT, THAT 02:31:27.478 --> 02:31:29.380 IS WHAT I MEANT BY WE NEED TO 02:31:29.447 --> 02:31:30.915 MAKE IT EASY FOR DECISION 02:31:30.981 --> 02:31:32.716 MAKERS TO PICK CALIFORNIA. SO 02:31:32.783 --> 02:31:34.385 WE NEED TO MAKE OUR TAX 02:31:34.452 --> 02:31:36.153 INCENTIVE RELIABLE, SOMETHING 02:31:36.220 --> 02:31:38.155 THAT THEY CAN COUNT ON AND PLAN 02:31:38.222 --> 02:31:40.291 FOR. AND WHEN THERE'S LIMITED 02:31:40.357 --> 02:31:42.359 RESOURCES, IT'S UNCAPPED. IT 02:31:42.426 --> 02:31:44.195 DOESN'T ALLOW FOR THAT. AND SO 02:31:44.261 --> 02:31:46.363 THEREFORE, YOU KNOW, YOU THEY 02:31:46.430 --> 02:31:47.898 THAT'S WHY WE'RE THIRD OR 02:31:47.965 --> 02:31:50.000 FOURTH OR FIFTH IN THAT 02:31:50.067 --> 02:31:51.135 CONVERSATION AND NOT NUMBER ONE 02:31:51.202 --> 02:31:54.438 WHERE WE SHOULD BE. YEAH. ONE 02:31:54.505 --> 02:31:55.539 LAST THING. AND SORT OF TO 02:31:55.606 --> 02:31:56.874 UNDERSCORE BETSY'S POINT, YOU 02:31:56.941 --> 02:31:58.375 KNOW, THE PRODUCTIONS ARE NOT 02:31:58.442 --> 02:31:59.343 GETTING IT'S BECAUSE THEY'RE 02:31:59.410 --> 02:32:00.478 MISSING A PERCENTAGE OF A 02:32:00.544 --> 02:32:01.979 FRACTION. IT ISN'T BY LEAPS AND 02:32:02.046 --> 02:32:03.447 BOUNDS. SO I THINK THAT'S SORT 02:32:03.514 --> 02:32:04.582 OF WHERE WE'RE GETTING TO IS 02:32:04.648 --> 02:32:06.383 WE'RE NOT TALKING ABOUT THESE 02:32:06.450 --> 02:32:07.384 GINORMOUS NUMBERS. IT'S SMALL 02:32:07.451 --> 02:32:08.352 PERCENTAGES ARE MAKING THE 02:32:08.419 --> 02:32:09.386 DIFFERENCE BETWEEN A PRODUCTION 02:32:09.453 --> 02:32:10.621 GETTING IN AND A PRODUCTION NOT 02:32:10.688 --> 02:32:12.423 OR GOING TO NEW MEXICO. YEAH. I 02:32:12.490 --> 02:32:14.391 WAS GOING TO SAY THE, YOU KNOW, 02:32:14.458 --> 02:32:15.593 PART OF THE FROM HAVING WORKED 02:32:15.659 --> 02:32:17.461 ON THE, THE STANDARDS FOR 4.0, 02:32:17.528 --> 02:32:19.530 WHEN YOU HAVE A CAPPED PROGRAM, 02:32:19.597 --> 02:32:20.698 THE GOAL OF THE PROGRAM IS 02:32:20.764 --> 02:32:22.533 REALLY TO TRY TO KEEP JOBS AND 02:32:22.600 --> 02:32:23.801 SPENDING IN THE STATE. SO THAT 02:32:23.868 --> 02:32:25.970 IS WHAT'S WRITTEN INTO THE LAW. 02:32:26.036 --> 02:32:27.471 AND I DON'T THINK WE ACTUALLY 02:32:27.538 --> 02:32:28.806 HAVE PROBABLY DONE ENOUGH TO 02:32:28.873 --> 02:32:30.608 LOOK AT ISSUES RELATED TO 02:32:30.674 --> 02:32:31.275 LONGEVITY OF THE PRODUCTION, 02:32:31.342 --> 02:32:32.109 WHETHER OR NOT THERE'S LONG 02:32:32.176 --> 02:32:33.811 TERM COMMITMENTS TO THE STATE. 02:32:33.878 --> 02:32:34.912 I MEAN, THERE'S SOME OTHER 02:32:34.979 --> 02:32:36.080 THINGS THAT WE COULD BE DOING 02:32:36.146 --> 02:32:37.882 IN ADDITION TO JUST LOOKING AT 02:32:37.948 --> 02:32:39.617 SORT OF JUST REALLY ROUGH, YOU 02:32:39.683 --> 02:32:42.486 KNOW, JOB STANDARDS. SO ALEX, 02:32:42.553 --> 02:32:44.255 THANK YOU. YOU KNOW, TO, TO 02:32:44.321 --> 02:32:45.689 BETSY'S POINT AND EVERYBODY 02:32:45.756 --> 02:32:48.192 ELSE ORIGINALLY, THIS THIS 02:32:48.259 --> 02:32:49.693 PROGRAM, WHEN IT FIRST STARTED, 02:32:49.760 --> 02:32:52.630 IT WAS A LOTTERY SYSTEM. AND, 02:32:52.696 --> 02:32:53.998 YOU KNOW, WE, WE HAD ISSUES 02:32:54.064 --> 02:32:56.500 WITH THAT. AND, AND I'M NOT 02:32:56.567 --> 02:32:58.202 MAKING EXCUSES. THE POINT I'M 02:32:58.269 --> 02:32:59.770 TRYING TO MAKE IS THAT I, I 02:32:59.837 --> 02:33:01.105 COMPLETELY UNDERSTAND, YOU KNOW, 02:33:01.171 --> 02:33:03.040 HER POINT INTO WANTING TO HAVE 02:33:03.107 --> 02:33:04.375 HER PRODUCTION HERE. I MEAN, 02:33:04.441 --> 02:33:07.378 IT'S HERE FOR 22 YEARS, 23 02:33:07.444 --> 02:33:08.846 YEARS. I WAS TELLING HER WE HAD 02:33:08.913 --> 02:33:10.748 A MEMBER WHO'S BEEN THERE HIS 02:33:10.814 --> 02:33:11.849 ENTIRE CAREER WHEN HE JOINED 02:33:11.916 --> 02:33:14.518 OUR UNION. BUT THERE'S SO MANY 02:33:14.585 --> 02:33:16.754 THINGS THAT WE CAN WORK ON AND, 02:33:16.820 --> 02:33:18.656 AND LOOK, UNCAPPED IS OBVIOUSLY 02:33:18.722 --> 02:33:21.292 THE GOAL FOR ALL OF US, RIGHT? 02:33:21.358 --> 02:33:23.894 WHETHER THAT'S POSSIBLE OR NOT, 02:33:23.961 --> 02:33:25.996 WE DON'T KNOW. BUT THERE'S 02:33:26.063 --> 02:33:27.131 DEFINITELY THINGS THAT WE CAN 02:33:27.197 --> 02:33:28.732 DO. THIS HAS ALWAYS BEEN A BILL 02:33:28.799 --> 02:33:31.302 ABOUT JOBS. HOW MANY JOBS CAN 02:33:31.368 --> 02:33:33.671 YOU CREATE. AND AND I NEVER 02:33:33.737 --> 02:33:35.372 REALLY HEARD ANYBODY, YOU KNOW, 02:33:35.439 --> 02:33:37.875 SAY WHAT YOU SAID, BETSY, THAT 02:33:37.942 --> 02:33:39.476 THE YOU KNOW, TO ARLEN'S POINT, 02:33:39.543 --> 02:33:41.145 THE THE FRACTION IS SO SMALL, 02:33:41.211 --> 02:33:42.947 BUT, YOU KNOW, THERE'S SO MUCH 02:33:43.013 --> 02:33:44.815 WORK TO DO. AND, AND I THINK 02:33:44.882 --> 02:33:46.383 WHAT I WANTED TO HIGHLIGHT IS 02:33:46.450 --> 02:33:47.918 THAT WE, WE'VE, WE'RE SLOWLY 02:33:47.985 --> 02:33:50.454 MAKING IT BETTER. YOU KNOW, 02:33:50.521 --> 02:33:52.957 HOPEFULLY WE CAN SPEED THAT UP 02:33:53.023 --> 02:33:54.558 BECAUSE WE, WE DESPERATELY NEED 02:33:54.625 --> 02:33:57.628 IT. BUT, YOU KNOW, THE RATIO 02:33:57.695 --> 02:34:00.197 ABOUT JOBS HAS ALWAYS BEEN A 02:34:00.264 --> 02:34:01.999 PUSH BECAUSE WITHOUT THAT, I 02:34:02.066 --> 02:34:03.400 MEAN, WE HAVE SOME OF YOUR 02:34:03.467 --> 02:34:04.935 COLLEAGUES THAT WON'T EVER VOTE 02:34:05.002 --> 02:34:06.804 FOR THIS AND APPROVE IT UNLESS 02:34:06.870 --> 02:34:09.206 WE PUT A JOBS RATIO ON IT. SO, 02:34:09.273 --> 02:34:10.608 YOU KNOW, WE'RE WE'RE FIGHTING 02:34:10.674 --> 02:34:13.177 A BATTLE THAT IS IS HARD. IT'S 02:34:13.243 --> 02:34:15.079 HARD BECAUSE ALL THESE MEETINGS 02:34:15.145 --> 02:34:17.815 WE HAVE. AND, YOU KNOW, IF WE 02:34:17.881 --> 02:34:18.949 JUST SAY, WELL, YOU KNOW, 02:34:19.016 --> 02:34:19.984 GRAY'S HAS BEEN HERE AND 02:34:20.050 --> 02:34:21.785 THEY'RE GOING TO EMPLOY 100 02:34:21.852 --> 02:34:24.321 PEOPLE AND FALLOUT HAS 300 02:34:24.388 --> 02:34:26.790 PEOPLE. YOU KNOW, IT'S IT'S 02:34:26.857 --> 02:34:29.393 HARD TO FIGURE OUT WHERE CAN WE 02:34:29.460 --> 02:34:31.128 ACTUALLY MAKE THE CHANGES THAT 02:34:31.195 --> 02:34:32.963 WILL ENABLE A SHOW LIKE GRAY'S 02:34:33.030 --> 02:34:34.798 ANATOMY TO BE HERE AND, AND 02:34:34.865 --> 02:34:36.233 CONTINUE ON, OR NEW SHOWS LIKE 02:34:36.300 --> 02:34:37.668 GRAY'S ANATOMY THAT THEY 02:34:37.735 --> 02:34:39.470 PRODUCE? I SHOULD SAY. SO 02:34:39.536 --> 02:34:40.638 ANYWAY, THAT'S WHAT I WANTED TO 02:34:40.704 --> 02:34:42.439 POINT OUT THAT, YOU KNOW, IT 02:34:42.506 --> 02:34:43.641 WAS A LOTTERY SYSTEM, WHICH WAS 02:34:43.707 --> 02:34:45.876 A MESS. AND AT FIRST AND NOW 02:34:45.943 --> 02:34:47.711 IT'S, IT'S, IT'S SLOWLY GETTING 02:34:47.778 --> 02:34:49.980 BETTER, BUT WE DEFINITELY HAVE 02:34:50.047 --> 02:34:52.816 A LOT OF WORK TO DO. THANK YOU. 02:34:52.883 --> 02:34:55.285 WERE YOU DONE? ANYONE ELSE? I 02:34:55.352 --> 02:34:58.222 THINK, NICK, DID YOU HAVE SOME 02:34:58.288 --> 02:35:02.593 QUESTIONS? JUST A ONE. JUST FOR 02:35:02.660 --> 02:35:04.261 THE SAKE OF TIME. AND I WANT TO 02:35:04.328 --> 02:35:05.396 LEAVE TIME FOR MY COLLEAGUES 02:35:05.462 --> 02:35:07.164 OVER HERE IF THEY HAVE ANY 02:35:07.231 --> 02:35:08.365 QUESTIONS. I DID HAVE ONE THING 02:35:08.432 --> 02:35:09.500 WE'VE TALKED ABOUT UNCAPPING 02:35:09.566 --> 02:35:11.135 THE PROGRAM, WHICH I THINK, 02:35:11.201 --> 02:35:12.569 ALEX, YOU PUT IT REALLY WELL 02:35:12.636 --> 02:35:14.138 THAT THAT IS REALLY WHAT WE 02:35:14.204 --> 02:35:15.239 SHOULD STRIVE FOR. THAT WOULD 02:35:15.305 --> 02:35:16.440 SOLVE A LOT OF THE STRUCTURAL 02:35:16.507 --> 02:35:18.108 PROBLEMS. SHORT OF THAT, I 02:35:18.175 --> 02:35:19.276 THINK THAT MORE MONEY FOR THE 02:35:19.343 --> 02:35:20.377 PROGRAM AND SOME OF THESE 02:35:20.444 --> 02:35:22.146 CHANGES TO THE CRITERIA MAKES 02:35:22.212 --> 02:35:24.181 SENSE. WE'VE ALSO TALKED ACROSS 02:35:24.248 --> 02:35:25.616 BOTH PANELS NOW ABOUT ABOVE THE 02:35:25.683 --> 02:35:27.618 LINE COSTS AND HOW AND WHETHER 02:35:27.685 --> 02:35:28.752 THOSE SHOULD BE COUNTED. THE 02:35:28.819 --> 02:35:29.887 ONE THING THAT YOU HAD SAID 02:35:29.953 --> 02:35:31.822 THAT I JUST WANTED TO FOLLOW UP 02:35:31.889 --> 02:35:32.956 AND MAYBE GET A TEMPERATURE 02:35:33.023 --> 02:35:34.692 CHECK FROM THE PANEL WAS THE 02:35:34.758 --> 02:35:35.993 SUNSET. SO CALIFORNIA'S PROGRAM 02:35:36.060 --> 02:35:38.062 SUNSETS IN 2030, I BELIEVE NEW 02:35:38.128 --> 02:35:40.297 YORK'S 2036. I COULD BE 02:35:40.364 --> 02:35:41.365 MISTAKEN. I THINK GEORGIA MAY 02:35:41.432 --> 02:35:42.833 BE THE ONLY JURISDICTION THAT 02:35:42.900 --> 02:35:44.268 ELIMINATED THEIR SUNSET 02:35:44.334 --> 02:35:45.669 ENTIRELY. YEAH. I'M JUST 02:35:45.736 --> 02:35:47.104 WONDERING, I MEAN, DO YOU THINK 02:35:47.171 --> 02:35:48.205 THAT THAT SHOULD ALSO BE PART 02:35:48.272 --> 02:35:49.339 OF THE CONVERSATION THE 02:35:49.406 --> 02:35:51.141 LEGISLATURE HAS? ABSOLUTELY. 02:35:51.208 --> 02:35:54.878 AND OKAY, WHOEVER FROM THE 02:35:54.945 --> 02:35:56.146 PANEL WOULD LIKE TO RESPOND? DO 02:35:56.213 --> 02:35:57.948 YOU WANT TO RESPOND? WELL, YOU 02:35:58.015 --> 02:36:00.084 KNOW, THAT'S DEFINITELY A BIG 02:36:00.150 --> 02:36:01.552 THING BECAUSE SPEAKING TO 02:36:01.618 --> 02:36:03.687 PRODUCERS AND CREATORS WHO I'VE 02:36:03.754 --> 02:36:05.155 SAT DOWN WITH THAT, THAT'S A 02:36:05.222 --> 02:36:07.624 BIG ISSUE FOR THEM BECAUSE YOU 02:36:07.691 --> 02:36:10.194 WANT, YOU KNOW, LET'S JUST TAKE 02:36:10.260 --> 02:36:12.996 BETSY AND SHONDA. BY THE WAY, I 02:36:13.063 --> 02:36:14.098 WORKED ON A COUPLE OF YOUR 02:36:14.164 --> 02:36:17.000 SHOWS, WHICH WERE GREAT, BUT 02:36:17.067 --> 02:36:19.169 THEY NEED THAT STABILITY. 02:36:19.236 --> 02:36:20.938 LISTEN, SOMEONE LIKE THEM WHO 02:36:21.004 --> 02:36:25.309 WHO PUT OUT AMAZING CONTENT AND 02:36:25.375 --> 02:36:29.980 ITS LONGEVITY. IF IF THE 02:36:30.047 --> 02:36:32.182 PROGRAM'S TWO YEARS INTO ITS 02:36:32.249 --> 02:36:34.685 SUNSET, THEY MAY BE LIKE, WELL, 02:36:34.752 --> 02:36:36.320 WHY? WHY ARE WE GOING TO GO 02:36:36.386 --> 02:36:37.955 THERE? BECAUSE THEN WE RUN THE 02:36:38.021 --> 02:36:39.990 RISK OF, YOU KNOW, WHAT? IF IT 02:36:40.057 --> 02:36:41.692 GOES AWAY? I MEAN, AND LET'S 02:36:41.759 --> 02:36:44.428 FACE IT, LOOK, I I'M ALWAYS A 02:36:44.495 --> 02:36:46.897 STRAIGHT SHOOTER. AND WE, YOU 02:36:46.964 --> 02:36:48.599 KNOW, WE HAVE A LOT OF NEW 02:36:48.665 --> 02:36:50.567 FOLKS IN, IN, IN YOUR, YOUR, 02:36:50.634 --> 02:36:52.302 SOME OF YOUR COLLEAGUES AND 02:36:52.369 --> 02:36:54.104 SOME OF THEM DON'T, DON'T 02:36:54.171 --> 02:36:55.072 UNDERSTAND THE IMPORTANCE OF 02:36:55.139 --> 02:36:56.340 THESE JOBS AND THE FAMILIES AND 02:36:56.406 --> 02:36:59.109 WHAT IT DOES TO CALIFORNIA, THE 02:36:59.176 --> 02:37:00.944 ECONOMY, THE BUSINESSES. DRY 02:37:01.011 --> 02:37:02.780 CLEANING DONUT SHOPS. RIGHT. I 02:37:02.846 --> 02:37:05.649 CAN GO ON AND ON. AND SO WHEN, 02:37:05.716 --> 02:37:07.417 WHEN THEY DON'T SEE THAT, THEY 02:37:07.484 --> 02:37:09.653 DON'T THINK LONG VIEW. AND SO 02:37:09.720 --> 02:37:12.256 TO, TO TAKE THAT AWAY OR AT 02:37:12.322 --> 02:37:14.158 LEAST EXTEND IT TO LIKE TEN 02:37:14.224 --> 02:37:15.392 YEARS, I BELIEVE THAT'S 02:37:15.459 --> 02:37:16.493 SOMETHING THAT WOULD ALSO BE IN 02:37:16.560 --> 02:37:18.962 OUR FAVOR TO, TO BRING MORE 02:37:19.029 --> 02:37:19.630 PRODUCTIONS HERE, BECAUSE 02:37:19.696 --> 02:37:20.764 THAT'S SOMETHING THAT I'VE 02:37:20.831 --> 02:37:22.933 HEARD FROM THEM DIRECTLY. IT'S 02:37:23.000 --> 02:37:24.001 SOMETHING THEY CONSIDER. THEY 02:37:24.067 --> 02:37:26.103 NEED STABILITY TO KNOW THIS 02:37:26.170 --> 02:37:28.672 PROGRAM IS NOT GOING TO GO AWAY. 02:37:28.739 --> 02:37:30.574 THANK YOU. ALEX. JEFF. I'M OKAY. 02:37:30.641 --> 02:37:33.043 I HAVE ONE ONE QUESTION. AND I 02:37:33.110 --> 02:37:35.045 THINK THIS GOES A LITTLE BIT TO 02:37:35.112 --> 02:37:36.113 SOME OF THE COMMENTS THAT 02:37:36.180 --> 02:37:38.015 ASSEMBLYMEMBERS MADE. I KNOW 02:37:38.081 --> 02:37:39.683 THAT WHEN I WAS SPEAKING TO A 02:37:39.750 --> 02:37:40.918 LOT OF FOLKS THAT WERE MAKING 02:37:40.984 --> 02:37:41.985 DECISIONS ABOUT KEEPING THINGS 02:37:42.052 --> 02:37:43.654 IN CALIFORNIA VERSUS NOT IN 02:37:43.720 --> 02:37:44.688 CALIFORNIA, YOU KNOW, SOME OF 02:37:44.755 --> 02:37:48.125 THE REASONS WHY THEY WERE NOT 02:37:48.192 --> 02:37:49.993 ACTUALLY PUTTING CALIFORNIA ON 02:37:50.060 --> 02:37:51.895 THE PIECE OF PAPER WAS BECAUSE 02:37:51.962 --> 02:37:53.197 OUR EFFECTIVE TAX RATE WAS SO 02:37:53.263 --> 02:37:55.032 LOW BEFORE THE 4.0 PROGRAM WENT 02:37:55.098 --> 02:37:56.099 THROUGH. I MEAN, WHEN YOU 02:37:56.166 --> 02:37:58.168 ACTUALLY HAD A 20% CREDIT 02:37:58.235 --> 02:38:00.671 AGAINST 35, 40 AND 45 AND EVEN 02:38:00.737 --> 02:38:02.439 50% CREDITS, IT WAS SORT OF 02:38:02.506 --> 02:38:03.540 LIKE, WELL, WHY DO THE 02:38:03.607 --> 02:38:05.142 CALCULATION WHEN I KNOW THAT 02:38:05.209 --> 02:38:06.677 IT'S NOT GOING TO EVEN COME 02:38:06.743 --> 02:38:08.245 CLOSE TO PENCILING OUT? I JUST 02:38:08.312 --> 02:38:10.747 WANTED TO ACTUALLY ASK ARLAN 02:38:10.814 --> 02:38:12.182 AND ANYONE ELSE WHO WANTS TO 02:38:12.249 --> 02:38:15.519 WEIGH IN IT. MY SENSE IS THAT 02:38:15.586 --> 02:38:16.887 WE'VE DONE SOME THAT YOU'VE 02:38:16.954 --> 02:38:18.689 DONE SOME WORK LOOKING AT THE 02:38:18.755 --> 02:38:20.824 EFFECTIVE RATE OF CALIFORNIA'S 02:38:20.891 --> 02:38:23.160 PROGRAM. NOW, AFTER THE VARIOUS 02:38:23.227 --> 02:38:25.162 BILLS THAT WE'VE PASSED AND, 02:38:25.229 --> 02:38:27.030 YOU KNOW, THE 4.0 PROGRAM, WE 02:38:27.097 --> 02:38:29.967 RAISED THE THE RATE TO 35%, 02:38:30.033 --> 02:38:32.102 WHICH DIDN'T INCLUDE ABOVE THE 02:38:32.169 --> 02:38:34.037 LINE. I KNOW WE WANT TO MOVE 02:38:34.104 --> 02:38:35.205 AWAY FROM THAT TERMINOLOGY, BUT 02:38:35.272 --> 02:38:36.406 IT DIDN'T INCLUDE ABOVE THE 02:38:36.473 --> 02:38:38.108 LINE. THE REASON WHY WE DID 02:38:38.175 --> 02:38:40.210 THAT WAS WE WERE TRYING TO GET 02:38:40.277 --> 02:38:41.678 TO SOMETHING THAT WAS CLOSE TO 02:38:41.745 --> 02:38:44.615 A 30% EFFECTIVE RATE COMPARED 02:38:44.681 --> 02:38:45.816 TO THOSE STATES THAT HAD ABOVE 02:38:45.883 --> 02:38:46.950 THE LINE, LIKE GEORGIA, WHICH 02:38:47.017 --> 02:38:48.919 WAS AT 30%. SO WE FIGURED THE 02:38:48.986 --> 02:38:51.221 35% CREDIT BECAUSE OF THE ABOVE, 02:38:51.288 --> 02:38:53.290 THE LINE WAS CLOSE TO A 30% 02:38:53.357 --> 02:38:55.092 EFFECTIVE RATE. NOW, I KNOW 02:38:55.158 --> 02:38:56.460 THAT WE'VE DONE SOME 02:38:56.526 --> 02:38:57.895 CALCULATIONS WITH WHAT WE'VE 02:38:57.961 --> 02:39:00.097 DONE IN RESPONSE TO THE LAST 02:39:00.163 --> 02:39:01.531 SESSION, AND I UNDERSTAND THAT 02:39:01.598 --> 02:39:03.233 THE EFFECTIVE RATE IS BACK DOWN 02:39:03.300 --> 02:39:04.835 INTO THE 20S. IS THAT CAN YOU 02:39:04.902 --> 02:39:06.203 TALK A THAT'S MY UNDERSTANDING 02:39:06.270 --> 02:39:07.404 AS WELL. ONE THANK YOU SO MUCH 02:39:07.471 --> 02:39:09.206 FOR YOU AND YOUR COLLEAGUES 02:39:09.273 --> 02:39:10.440 WORK ON SB 186. BEFORE THAT, I 02:39:10.507 --> 02:39:12.342 THINK WE WERE LOOKING AT A 17% 02:39:12.409 --> 02:39:13.810 EFFECTIVE RATE. BUT YEAH, 02:39:13.877 --> 02:39:15.245 LOOKING AT THE CHANGES THAT 02:39:15.312 --> 02:39:17.414 THAT WERE MADE, I THINK WE'RE 02:39:17.481 --> 02:39:19.149 NOW HOVERING AT, I WOULD SAY 02:39:19.216 --> 02:39:21.785 10% LESS. SO ABOUT 20 ISH. WE 02:39:21.852 --> 02:39:23.820 CAN GIVE YOU THE CHART 02:39:23.887 --> 02:39:24.922 AFTERWARDS, BUT I DON'T HAVE 02:39:24.988 --> 02:39:26.857 THE EXACT NUMBER, BUT I WANT TO 02:39:26.924 --> 02:39:29.192 SAY ABOUT 20%. SO THE TWO WAYS 02:39:29.259 --> 02:39:31.295 WE COULD DEAL WITH THAT IS 02:39:31.361 --> 02:39:32.496 EITHER BY CHANGING THE 02:39:32.562 --> 02:39:35.766 EFFECTIVE RATE, BUT ALSO ALSO 02:39:35.832 --> 02:39:37.567 EXEMPTING THE FILM TAX CREDIT 02:39:37.634 --> 02:39:39.369 FROM THE EFFECT FROM THE $5 02:39:39.436 --> 02:39:41.204 MILLION CAP. SO THAT'S 02:39:41.271 --> 02:39:42.205 MODERNIZATION PIECE IS THE 02:39:42.272 --> 02:39:43.206 OTHER PIECE THAT CREATES 02:39:43.273 --> 02:39:44.207 CERTAINTY, RIGHT? A LONGER 02:39:44.274 --> 02:39:45.475 PROGRAM WITH THE SUNSET 02:39:45.542 --> 02:39:46.977 ENSURING THAT THERE'S MORE, YOU 02:39:47.044 --> 02:39:49.046 KNOW, ELIGIBILITY, INCLUDING 02:39:49.112 --> 02:39:50.247 ABOVE THE LINE. BUT THE BACK 02:39:50.314 --> 02:39:51.515 END ALSO ALSO MATTERS, RIGHT? 02:39:51.581 --> 02:39:53.216 WE WANT TO MAKE SURE THAT THAT 02:39:53.283 --> 02:39:54.318 WHEN YOU'RE GETTING A TAX 02:39:54.384 --> 02:39:56.119 CREDIT, THAT YOU CAN UTILIZE IT 02:39:56.186 --> 02:39:58.455 FOR THE TAX RATE THAT YOU 02:39:58.522 --> 02:39:59.990 BUDGETED FOR. YEAH. DID YOU 02:40:00.057 --> 02:40:01.858 WANT TO ADD SOMETHING? AND THEN 02:40:01.925 --> 02:40:03.060 WE'RE GOING TO MOVE ON. I WOULD 02:40:03.126 --> 02:40:05.262 LOVE TO GET BOTH ON THE SUNSET 02:40:05.329 --> 02:40:07.097 AND THE HOW COMPETITIVE OUR 02:40:07.164 --> 02:40:09.199 REBATE IS OR THE PERCENTAGE. SO 02:40:09.266 --> 02:40:10.968 ON THE SUNSET, AS AN EXAMPLE, 02:40:11.034 --> 02:40:12.436 I'M CURRENTLY BIDDING A FILM, 02:40:12.502 --> 02:40:15.339 AN AMAZON ANIMATED FILM THAT IS 02:40:15.405 --> 02:40:18.275 SCHEDULED FOR 2028. RIGHT? IF 02:40:18.342 --> 02:40:21.111 WE HAVE A SUNSET ON THE PROGRAM 02:40:21.178 --> 02:40:23.313 BETWEEN NOW AND THEN, THE 02:40:23.380 --> 02:40:24.681 CONVERSATION COULD CHANGE. 02:40:24.748 --> 02:40:26.817 RIGHT NOW, THEY CAN SEE A 02:40:26.883 --> 02:40:27.951 NUMBER, AND THEN THEY CAN 02:40:28.018 --> 02:40:28.919 COMPARE IT TO SOMEWHERE WHERE 02:40:28.986 --> 02:40:30.754 THEY CAN COUNT ON IT. AND THEN 02:40:30.821 --> 02:40:33.023 AS IT RELATES TO THE REBATES, I 02:40:33.090 --> 02:40:35.125 WOULD LIKE TO HIGHLIGHT AND 02:40:35.192 --> 02:40:37.661 JUST SAY THANK YOU SO MUCH, 02:40:37.728 --> 02:40:40.197 BECAUSE OUR POST ONLY TAX 02:40:40.263 --> 02:40:41.631 INCENTIVE IS NOW ONE OF THE 02:40:41.698 --> 02:40:43.767 MOST COMPETITIVE IN THE WORLD. 02:40:43.834 --> 02:40:45.602 AND WE WERE ABLE TO OUR 02:40:45.669 --> 02:40:46.636 ASSEMBLY MEMBER, SCHULZ WAS 02:40:46.703 --> 02:40:49.139 ABLE TO SECURE THE WORLD'S 02:40:49.206 --> 02:40:52.776 LARGEST UPLIFT FOR THE SCORING 02:40:52.843 --> 02:40:55.278 WORLD 15%. SO THAT'S 02:40:55.345 --> 02:40:56.713 UNPRECEDENTED. AND SO THEREFORE, 02:40:56.780 --> 02:40:57.814 THE QUESTION THAT WE NEED TO 02:40:57.881 --> 02:41:01.351 ASK OURSELVES IS WHY NOT US IF 02:41:01.418 --> 02:41:03.620 OTHER TERRITORIES ARE DOING IT? 02:41:03.687 --> 02:41:05.222 YES, WE HAVE TO COME UP WITH 02:41:05.288 --> 02:41:06.790 THE ECONOMIC, THE JOB IMPACT 02:41:06.857 --> 02:41:08.258 REPORTS AND ALL OF THAT. BUT 02:41:08.325 --> 02:41:09.459 REALLY THE QUESTION IS SIMPLE 02:41:09.526 --> 02:41:13.330 WHY NOT CALIFORNIA? YOU? ANYONE 02:41:13.397 --> 02:41:16.199 ELSE? OKAY. I'D LIKE TO THANK 02:41:16.266 --> 02:41:18.068 YOU ALL FOR BEING HERE TODAY. 02:41:18.135 --> 02:41:19.403 THE NEXT PANEL WE'RE I THINK 02:41:19.469 --> 02:41:21.505 WE'RE GOING TO BE PROBING INTO 02:41:21.571 --> 02:41:23.540 THE ISSUE OF WHY NOT US? SO BUT 02:41:23.607 --> 02:41:25.542 I WANT TO I WANT TO THANK YOU 02:41:25.609 --> 02:41:27.310 ALL FOR BEING HERE TODAY AND 02:41:27.377 --> 02:41:28.512 TAKING TIME OUT OF YOUR BUSY 02:41:28.578 --> 02:41:30.480 SCHEDULE. SO THANK YOU VERY 02:41:30.547 --> 02:41:36.987 MUCH. THANK YOU. OKAY, LET'S 02:41:37.054 --> 02:41:38.288 WE'RE GOING TO CALL UP OUR 02:41:38.355 --> 02:41:42.859 FINAL PANEL. THANK YOU, MR. 02:41:42.926 --> 02:41:44.628 CHAIRMAN. THANK YOU SO MUCH FOR 02:41:44.694 --> 02:41:46.897 COMING. THANK YOU. I REALLY 02:41:46.963 --> 02:42:31.041 APPRECIATE IT. WELCOME. SO OUR 02:42:31.108 --> 02:42:34.344 FINAL PANEL OF THE DAY IS ABOUT 02:42:34.411 --> 02:42:35.479 EVALUATING THE BUDGET IMPACTS 02:42:35.545 --> 02:42:37.180 OF THE CALIFORNIA FILM AND 02:42:37.247 --> 02:42:38.949 TELEVISION TAX CREDIT PROGRAM. 02:42:39.015 --> 02:42:40.450 ONE OF THE CHALLENGES THAT WE 02:42:40.517 --> 02:42:42.619 FACE IN THE LEGISLATURE IS THAT 02:42:42.686 --> 02:42:43.987 THIS TAX CREDIT PROGRAM IS 02:42:44.054 --> 02:42:45.555 SCORED BY A DEPARTMENT OF 02:42:45.622 --> 02:42:47.290 FINANCE AND IS SCORED AS A COST 02:42:47.357 --> 02:42:48.925 TO THE STATE BUDGET, WHICH OF 02:42:48.992 --> 02:42:53.029 COURSE MEANS THAT WE ARE MAKING 02:42:53.096 --> 02:42:55.899 DECISIONS ABOUT HOW WE SPEND 02:42:55.966 --> 02:42:57.734 CALIFORNIA PUBLIC RESOURCES AND 02:42:57.801 --> 02:43:01.271 WHETHER OR NOT THIS PROGRAM IS 02:43:01.338 --> 02:43:03.440 WORTHY OF THOSE EXPENDITURES. 02:43:03.507 --> 02:43:07.043 SO I THINK ONE OF THE ISSUES 02:43:07.110 --> 02:43:08.411 RELATED TO WHETHER OR NOT WE 02:43:08.478 --> 02:43:09.546 CAN INCREASE THE SIZE OF THE 02:43:09.613 --> 02:43:11.781 CAP OR TAKE THE CAP OFF, HAS A 02:43:11.848 --> 02:43:13.884 LOT TO DO WITH HOW OUR 02:43:13.950 --> 02:43:15.051 DEPARTMENT OF FINANCE AND HOW 02:43:15.118 --> 02:43:17.087 WE SCORE THESE PROGRAMS IN THE 02:43:17.154 --> 02:43:18.588 IN THE STATE BUDGET. AND THAT'S 02:43:18.655 --> 02:43:21.124 WHAT THIS PANEL IS ABOUT TODAY. 02:43:21.191 --> 02:43:23.994 SO I'D LIKE TO WELCOME STEVEN 02:43:24.060 --> 02:43:25.462 CHUNG, WHO'S PRESIDENT AND CEO 02:43:25.529 --> 02:43:27.597 OF THE LOS ANGELES ECONOMIC 02:43:27.664 --> 02:43:31.535 DEVELOPMENT. DEVELOPMENT 02:43:31.601 --> 02:43:33.003 CORPORATION. I'D LIKE TO NOTE 02:43:33.069 --> 02:43:36.540 THAT WITH HIM TODAY IS SHANNON 02:43:36.606 --> 02:43:38.408 SEDGWICK, VICE PRESIDENT OF 02:43:38.475 --> 02:43:39.442 RESEARCH. SHE'LL BE ABLE TO 02:43:39.509 --> 02:43:40.877 ASSIST WITH FIELDING ANY 02:43:40.944 --> 02:43:43.046 QUESTIONS DURING THE Q&A 02:43:43.113 --> 02:43:45.248 PORTION. ALSO TODAY WE HAVE 02:43:45.315 --> 02:43:46.516 ROHAN ISAACS, AN ECONOMIST WITH 02:43:46.583 --> 02:43:47.751 THE LEGISLATIVE ANALYST'S 02:43:47.817 --> 02:43:49.119 OFFICE, WHOSE PROGRAM AREAS OF 02:43:49.186 --> 02:43:50.954 EXPERTISE INCLUDE ECONOMIC 02:43:51.021 --> 02:43:52.022 DEVELOPMENT AND THE FILM AND 02:43:52.088 --> 02:43:53.557 TELEVISION INDUSTRY. WELCOME, 02:43:53.623 --> 02:43:55.659 ROHAN. ALSO, WE HAVE WITH US 02:43:55.725 --> 02:43:57.494 TODAY MATT HORTON, A FELLOW, A 02:43:57.561 --> 02:43:59.262 FELLOW ADVISOR WITH THE MILKEN 02:43:59.329 --> 02:44:00.497 INSTITUTE AND PREVIOUS DIRECTOR 02:44:00.564 --> 02:44:02.165 OF THE CALIFORNIA CENTER AT THE 02:44:02.232 --> 02:44:04.367 MILKEN INSTITUTE. WELCOME, AS 02:44:04.434 --> 02:44:06.469 WELL AS CASSANDRA HAZEL 02:44:06.536 --> 02:44:07.504 HAZELTINE. I HOPE I PRONOUNCED 02:44:07.571 --> 02:44:09.773 THAT RIGHT. PRESIDENT OF FLICKS, 02:44:09.839 --> 02:44:12.576 THE FILM LIAISONS IN CALIFORNIA 02:44:12.642 --> 02:44:13.677 STATEWIDE, AND THE FILM 02:44:13.743 --> 02:44:14.644 COMMISSIONER WITH THE HUMBOLDT 02:44:14.711 --> 02:44:16.513 DEL NORTE FILM COMMISSION. SO 02:44:16.580 --> 02:44:17.881 WELCOME TODAY. I'D LIKE TO 02:44:17.948 --> 02:44:19.482 START WITH STEVEN. THANK YOU. 02:44:19.549 --> 02:44:22.619 SO THANK YOU SO MUCH, CHAIRMAN 02:44:22.686 --> 02:44:24.054 AND COMMITTEE MEMBERS, FOR 02:44:24.120 --> 02:44:25.889 HAVING US TO BE ABLE TO TESTIFY. 02:44:25.956 --> 02:44:27.023 AGAIN, MY NAME IS STEVEN CHUNG. 02:44:27.090 --> 02:44:28.959 I'M THE CEO FOR THE LOS ANGELES 02:44:29.025 --> 02:44:29.960 COUNTY ECONOMIC DEVELOPMENT 02:44:30.026 --> 02:44:30.760 CORPORATION, AND WE'RE A 02:44:30.827 --> 02:44:31.728 NONPROFIT ORGANIZATION FOCUSED 02:44:31.795 --> 02:44:33.263 ON INCLUSIVE ECONOMIC GROWTH 02:44:33.330 --> 02:44:35.298 FOR THE LOS ANGELES REGION. AND 02:44:35.365 --> 02:44:38.068 WE'RE ALSO ABLE TO DO AN 02:44:38.134 --> 02:44:40.003 ECONOMIC IMPACT REPORT ON THE 02:44:40.070 --> 02:44:42.505 FILM AND TELEVISION TAX CREDIT 02:44:42.572 --> 02:44:44.608 2.0. AND THE LEAD AUTHOR IS 02:44:44.674 --> 02:44:45.842 SHANNON SEDGWICK, AND SHE IS 02:44:45.909 --> 02:44:47.077 HERE TO ANSWER ANY QUESTIONS 02:44:47.143 --> 02:44:49.279 YOU MIGHT HAVE. FOR OVER A 02:44:49.346 --> 02:44:50.513 CENTURY, CALIFORNIA HAS BEEN 02:44:50.580 --> 02:44:52.015 THE HEART OF THE GLOBAL 02:44:52.082 --> 02:44:52.582 ENTERTAINMENT INDUSTRY, AND 02:44:52.649 --> 02:44:54.017 BEHIND THAT INDUSTRY IS A 02:44:54.084 --> 02:44:56.486 NETWORK OF WORKERS ACROSS SKILL 02:44:56.553 --> 02:44:57.954 SPECTRUM AND BUSINESSES OF ALL 02:44:58.021 --> 02:44:59.689 SIZES, DEPENDING THAT DEPEND ON 02:44:59.756 --> 02:45:01.191 THE PRODUCTION. STAYING HERE IN 02:45:01.258 --> 02:45:02.659 CALIFORNIA AND THE CALIFORNIA 02:45:02.726 --> 02:45:04.027 FILM AND TELEVISION TAX CREDIT 02:45:04.094 --> 02:45:05.895 PROGRAM IS AN INVESTMENT IN 02:45:05.962 --> 02:45:06.997 RETAINING THAT WORKFORCE AND 02:45:07.063 --> 02:45:09.065 THE ECONOMIC ACTIVITY IT 02:45:09.132 --> 02:45:10.500 SUPPORTS. THE RECENT EMPLOYMENT 02:45:10.567 --> 02:45:12.369 LOSSES DEMONSTRATE WHAT IS AT 02:45:12.435 --> 02:45:14.104 STAKE. BUREAU OF LABOR 02:45:14.170 --> 02:45:15.205 STATISTICS DATA SHOWS THAT 02:45:15.272 --> 02:45:16.640 CALIFORNIA MOTION PICTURE AND 02:45:16.706 --> 02:45:18.441 VIDEO PRODUCTION INDUSTRY 02:45:18.508 --> 02:45:21.745 AVERAGE APPROXIMATELY 136,000 02:45:21.811 --> 02:45:24.214 PRIVATE PAYROLL JOBS IN 2022. 02:45:24.281 --> 02:45:26.850 BY 2025, THAT NUMBER HAS FALLEN 02:45:26.916 --> 02:45:30.754 TO ABOUT 86,400 JOBS. THAT IS A 02:45:30.820 --> 02:45:33.189 NET DECLINE OF NEARLY 50,000 02:45:33.256 --> 02:45:35.792 JOBS, OR MORE THAN ONE THIRD. 02:45:35.859 --> 02:45:37.594 EMPLOYMENT WAS ALSO ABOUT 20% 02:45:37.661 --> 02:45:39.729 BELOW ITS PRE-PANDEMIC LEVEL. I 02:45:39.796 --> 02:45:41.464 WANT TO PUT THAT IN CONTEXT. 02:45:41.531 --> 02:45:42.932 50,000 PEOPLE IS A LOT OF 02:45:42.999 --> 02:45:44.401 PEOPLE. THAT'S THE POPULATION 02:45:44.467 --> 02:45:46.169 OF THE ENTIRE WEST SACRAMENTO 02:45:46.236 --> 02:45:48.371 REGION. THESE FIGURES REFLECT 02:45:48.438 --> 02:45:49.773 SEVERAL OVERLAPPING CHANGES, 02:45:49.839 --> 02:45:50.807 INCLUDING PANDEMIC DISRUPTION, 02:45:50.874 --> 02:45:52.275 THE DUAL HOLLYWOOD STRIKES, 02:45:52.342 --> 02:45:54.744 CHANGES IN COMMISSIONING AND 02:45:54.811 --> 02:45:56.212 COMPETITION IN PRODUCTION AS 02:45:56.279 --> 02:45:59.482 WELL. THEY ARE NOT ALL TO BE 02:45:59.549 --> 02:46:01.251 DESCRIBED AS LOSSES TO OTHER 02:46:01.318 --> 02:46:02.018 JURISDICTIONS, BUT THEY 02:46:02.085 --> 02:46:03.787 DEMONSTRATE THE SCALE OF THAT 02:46:03.853 --> 02:46:04.888 CONTRACTION AFFECTING 02:46:04.954 --> 02:46:06.323 CALIFORNIA WORKERS. THE 02:46:06.389 --> 02:46:07.390 INDUSTRY CONTINUED TO MAKE 02:46:07.457 --> 02:46:08.558 SUBSTANTIAL CONTRIBUTION TO OUR 02:46:08.625 --> 02:46:10.293 STATE ECONOMY. THE BUREAU OF 02:46:10.360 --> 02:46:12.128 ECONOMIC ANALYSIS ESTIMATES 02:46:12.195 --> 02:46:13.563 THAT MOTION PICTURE AND SOUND 02:46:13.630 --> 02:46:14.564 RECORDING INDUSTRIES 02:46:14.631 --> 02:46:17.200 CONTRIBUTED APPROXIMATELY $58 02:46:17.267 --> 02:46:19.669 BILLION TO CALIFORNIA'S GDP IN 02:46:19.736 --> 02:46:21.805 2025. THAT IS DIRECT VALUE 02:46:21.871 --> 02:46:23.640 ADDED BEFORE CONSIDERING SUPPLY 02:46:23.707 --> 02:46:25.809 CHAIN EFFECTS. BE A CATEGORY 02:46:25.875 --> 02:46:27.210 INCLUDES SOUND RECORDING, AND 02:46:27.277 --> 02:46:28.278 IT'S BROADER THAN JUST 02:46:28.345 --> 02:46:30.113 PRODUCTION EMPLOYMENT FIGURES I 02:46:30.180 --> 02:46:32.982 JUST CITED. CALIFORNIA 02:46:33.049 --> 02:46:34.184 INTRODUCED A PRODUCTION TAX 02:46:34.250 --> 02:46:37.787 CREDIT IN 2009 WITH $100 02:46:37.854 --> 02:46:39.122 MILLION ANNUALLY. THE PROGRAM 02:46:39.189 --> 02:46:40.957 EXPANDED TO $330 MILLION IN 02:46:41.024 --> 02:46:44.361 2015 AND 750 MILLION TO 2025. 02:46:44.427 --> 02:46:46.596 THE CURRENT PROGRAM GENERALLY 02:46:46.663 --> 02:46:48.398 PROVIDES 35% OF QUALIFIED 02:46:48.465 --> 02:46:49.599 SPENDING, WITH HIGHER SUPPORT 02:46:49.666 --> 02:46:51.568 FOR RELOCATING. SERIES FIRST 02:46:51.634 --> 02:46:54.137 CALIFORNIA SEASON. RECENT 02:46:54.204 --> 02:46:55.538 LEGISLATION ALSO CREATED A 02:46:55.605 --> 02:46:56.639 STANDALONE POST-PRODUCTION 02:46:56.706 --> 02:46:58.441 CREDIT. CALIFORNIA MUST 02:46:58.508 --> 02:47:00.276 CONSIDER THE EFFECT EFFECTIVE 02:47:00.343 --> 02:47:02.112 COST OF PRODUCTION THAN THE 02:47:02.178 --> 02:47:03.847 CERTAINTY OF RECEIVING AN AWARD 02:47:03.913 --> 02:47:05.248 AND THE TIME IT TAKES TO USE 02:47:05.315 --> 02:47:07.784 THE CREDIT OUR COMPETITORS, AS 02:47:07.851 --> 02:47:09.219 STATED IN THE PREVIOUS PANEL, 02:47:09.285 --> 02:47:11.388 USE DIFFERENT TOOLS. GEORGIA 02:47:11.454 --> 02:47:13.189 OFFERS 20% BASE CREDIT WITH A 02:47:13.256 --> 02:47:15.392 POSSIBLE TEN POINT PROMOTION 02:47:15.458 --> 02:47:17.160 UPLIFT BRITISH COLUMBIA'S BASIC 02:47:17.227 --> 02:47:19.696 PRODUCTION SERVICES CREDIT IS 02:47:19.763 --> 02:47:22.165 36% OF ELIGIBLE LOCAL LABOR. 02:47:22.232 --> 02:47:24.033 THE UNITED KINGDOM STANDARD 02:47:24.100 --> 02:47:25.468 EXPENDITURE CREDIT IS TAXABLE 02:47:25.535 --> 02:47:28.304 AND APPLIED TO DIFFERENT 02:47:28.371 --> 02:47:30.106 SPENDING. BASE HEADLINE 02:47:30.173 --> 02:47:31.207 PERCENTAGE ALONE. DO NOT TELL 02:47:31.274 --> 02:47:32.709 US WHICH LOCATION HAS THE 02:47:32.776 --> 02:47:35.178 LOWEST EFFECTIVE COST. THE LA 02:47:35.245 --> 02:47:36.646 ADC INSTITUTE FOR APPLIED 02:47:36.713 --> 02:47:37.714 ECONOMICS HAS STUDIED THE 02:47:37.781 --> 02:47:39.449 PROGRAM OVER TIME. THESE 02:47:39.516 --> 02:47:40.517 HISTORIC STUDIES PROVIDE 02:47:40.583 --> 02:47:41.951 CONTEXT AND HAVE ESTIMATED 02:47:42.018 --> 02:47:44.487 POSITIVE OUTCOME FOR STATE AND 02:47:44.554 --> 02:47:46.656 LOCAL FISCAL RETURN UNDER THEIR 02:47:46.723 --> 02:47:49.192 ASSUMPTIONS. OUR 2014 STUDY 02:47:49.259 --> 02:47:51.127 REPORTED THAT APPROXIMATELY $19 02:47:51.194 --> 02:47:53.897 IN ECONOMIC OUTPUT PER CREDIT 02:47:53.963 --> 02:47:56.533 DOLLAR. THE 2022 STUDY REPORTED 02:47:56.599 --> 02:47:59.636 ABOUT $24.40, INCLUDING 02:47:59.702 --> 02:48:00.670 SUPPLIERS AND HOUSEHOLD 02:48:00.737 --> 02:48:02.172 SPENDING. THE PUBLISHED 02:48:02.238 --> 02:48:04.340 COMBINED STATE AND LOCAL FISCAL 02:48:04.407 --> 02:48:06.976 RETURN WERE ONE FOR EACH DOLLAR 02:48:07.043 --> 02:48:10.447 IS $1.11 IN RETURN, AND $1.07 02:48:10.513 --> 02:48:13.750 RETURN IN 2022. WITH THAT STUDY 02:48:13.817 --> 02:48:16.519 IN 2022, STATE REVENUE SUPPORT 02:48:16.586 --> 02:48:17.887 SERVICES ACROSS CALIFORNIA. 02:48:17.954 --> 02:48:19.088 WHILE LOCAL REVENUES BENEFIT 02:48:19.155 --> 02:48:20.457 THE JURISDICTION THAT RECEIVED 02:48:20.523 --> 02:48:23.393 THEM. THE 2.0 PROGRAM WITH THE 02:48:23.460 --> 02:48:24.794 ANALYSIS, WHICH WAS THE LAST 02:48:24.861 --> 02:48:27.430 RELEASE, ESTIMATED ABOUT $22 02:48:27.497 --> 02:48:29.199 BILLION IN TOTAL ECONOMIC 02:48:29.265 --> 02:48:32.068 ACTIVITIES AND $7.7 BILLION IN 02:48:32.135 --> 02:48:34.938 LABOR INCOME ACROSS PRODUCTIONS 02:48:35.004 --> 02:48:37.006 STUDIED. THE 4.0 PROGRAM NOW 02:48:37.073 --> 02:48:38.308 EXPANDED PROGRAM IS GENERATING 02:48:38.374 --> 02:48:40.844 NEW COMMITMENTS. CFC'S FIRST 02:48:40.910 --> 02:48:42.512 YEAR OF THE EXPANDED PROGRAM 02:48:42.579 --> 02:48:45.315 INCLUDED 170 PROJECTS, 02:48:45.381 --> 02:48:47.484 PROJECTING $6.6 BILLION IN 02:48:47.550 --> 02:48:50.053 DIRECT CALIFORNIA SPENDING. THE 02:48:50.119 --> 02:48:51.521 OCTOBER AWARD ROUND ADDED 02:48:51.588 --> 02:48:55.425 ANOTHER 35 FILM PROJECT, ABOUT 02:48:55.492 --> 02:48:58.294 $1.1 BILLION, FILM LÀ REPORTS, 02:48:58.361 --> 02:49:00.463 RELEASED IN OCTOBER 2021, 02:49:00.530 --> 02:49:02.599 SHOWED THAT THE LOCAL ON 02:49:02.665 --> 02:49:04.000 LOCATION FILMING REMAINED DOWN 02:49:04.067 --> 02:49:06.603 NEARLY 5% IN THE THIRD QUARTER, 02:49:06.669 --> 02:49:08.371 BUT PROJECTS RECEIVING STATE 02:49:08.438 --> 02:49:10.173 CREDITS ACCOUNTED FOR ABOUT 40% 02:49:10.240 --> 02:49:12.375 OF THE SCRIPT, FILMING NEARLY 02:49:12.442 --> 02:49:14.077 TWICE THEIR SHARE A YEAR 02:49:14.143 --> 02:49:16.279 EARLIER. THEY SHOW ENCOURAGING 02:49:16.346 --> 02:49:17.747 PARTICIPATION ALONGSIDE 02:49:17.814 --> 02:49:19.215 CONTINUED WEAKNESSES RATHER 02:49:19.282 --> 02:49:21.684 THAN A COMPLETE RECOVERY. 02:49:21.751 --> 02:49:22.785 ECONOMIC BENEFITS REACHED 02:49:22.852 --> 02:49:24.521 BEYOND STUDIOS AND BEYOND. LOS 02:49:24.587 --> 02:49:26.389 ANGELES PRODUCTION SUPPORTS 02:49:26.456 --> 02:49:28.525 DRIVERS, CARPENTERS, CUSTOMERS, 02:49:28.591 --> 02:49:29.926 TECHNICAL WORKERS. UNION 02:49:29.993 --> 02:49:31.794 COVERED WORK, PROVIDES 02:49:31.861 --> 02:49:33.229 NEGOTIATED COMPENSATION AND 02:49:33.296 --> 02:49:33.930 PENSION AND HEALTH 02:49:33.997 --> 02:49:35.398 CONTRIBUTIONS AS WELL. THE 02:49:35.465 --> 02:49:36.766 INDUSTRY PURCHASE EQUIPMENT, 02:49:36.833 --> 02:49:38.268 CATERING, LODGING AND 02:49:38.334 --> 02:49:40.036 PROFESSIONAL SERVICES THROUGH 02:49:40.103 --> 02:49:42.939 ITS SUPPLY CHAIN AND ACTIVITIES 02:49:43.006 --> 02:49:45.875 OCCUR STATEWIDE, NOT JUST IN 02:49:45.942 --> 02:49:48.044 LOS ANGELES COUNTY, BUT OUR 02:49:48.111 --> 02:49:49.746 2022 STUDY IDENTIFIED OUT OF 02:49:49.812 --> 02:49:51.981 ZONE FILMING IN 24 COUNTIES 02:49:52.048 --> 02:49:54.984 ACROSS CALIFORNIA. OCTOBER'S 02:49:55.051 --> 02:49:56.686 NEW AWARD PROJECTED MORE THAN 02:49:56.753 --> 02:49:58.454 450 FILMING DAYS OUTSIDE OF LOS 02:49:58.521 --> 02:50:00.557 ANGELES ZONE AND STATE REVENUE 02:50:00.623 --> 02:50:01.257 ASSOCIATED WITH ACTIVITY 02:50:01.324 --> 02:50:03.092 SUPPORT SERVICES THROUGHOUT 02:50:03.159 --> 02:50:04.527 CALIFORNIA. WE THEREFORE 02:50:04.594 --> 02:50:06.362 SUPPORT A SUSTAINING 02:50:06.429 --> 02:50:07.830 COMPETITIVE CREDIT WITH 02:50:07.897 --> 02:50:09.232 MEASURING ITS RESULTS. 02:50:09.299 --> 02:50:11.100 CALIFORNIA WAGES, PAID WORK 02:50:11.167 --> 02:50:12.402 HOURS, DIRECT PURCHASES, AND 02:50:12.468 --> 02:50:13.570 THOSE MADE THROUGH SUPPLY CHAIN 02:50:13.636 --> 02:50:14.971 ACROSS OUR COUNTIES AND THE 02:50:15.038 --> 02:50:17.140 STATE AND LOCAL FISCAL RETURNS 02:50:17.206 --> 02:50:18.908 REPORTED. RETAINING PRODUCTION 02:50:18.975 --> 02:50:20.410 PROTECTS AND ESTABLISH ECONOMIC 02:50:20.476 --> 02:50:21.978 BASE AND LIVELIHOODS CONNECTED 02:50:22.045 --> 02:50:23.846 TO IT. AND BEFORE I CLOSE, I 02:50:23.913 --> 02:50:25.848 JUST WANT TO SAY THAT A LOT OF 02:50:25.915 --> 02:50:26.983 TIMES WHEN PEOPLE LOOK AT LA, 02:50:27.050 --> 02:50:28.985 THEY THINK OF US AS A THINK 02:50:29.052 --> 02:50:30.019 TANK WITH OUR RESEARCH 02:50:30.086 --> 02:50:31.120 INSTITUTE, BUT IN FACT, WE'RE A 02:50:31.187 --> 02:50:32.855 DO TANK. WE TAKE THE 02:50:32.922 --> 02:50:34.057 INFORMATION AND WE DO SOMETHING 02:50:34.123 --> 02:50:35.892 WITH IT. A LOT OF FOLKS DON'T 02:50:35.959 --> 02:50:37.060 KNOW THAT WE HAVE A BUSINESS 02:50:37.126 --> 02:50:38.061 ASSISTANCE PROGRAM. AND DURING 02:50:38.127 --> 02:50:39.963 THE 2022 TO 2024, WHEN WE LOST 02:50:40.029 --> 02:50:41.030 ALL THOSE JOBS, OUR TEAM 02:50:41.097 --> 02:50:42.899 ACTUALLY FIELDED A LOT OF CALLS 02:50:42.966 --> 02:50:43.900 FROM BUSINESSES. ONE BUSINESS 02:50:43.967 --> 02:50:45.935 CALLED US, AND AS A SOLE 02:50:46.002 --> 02:50:47.003 PROVIDER AND THE ENTERTAINMENT 02:50:47.070 --> 02:50:48.538 INDUSTRY, HE LOST HIS JOB AND 02:50:48.605 --> 02:50:50.440 HE DIDN'T KNOW WHAT TO DO. AND 02:50:50.506 --> 02:50:51.674 HE WAS CONTEMPLATING SUICIDE 02:50:51.741 --> 02:50:53.543 BECAUSE OF THAT. THAT'S THE 02:50:53.610 --> 02:50:55.345 DIRECT IMPACT. SO THE COST IS 02:50:55.411 --> 02:50:57.380 NOT JUST MONETARY. AND IT'S NOT 02:50:57.447 --> 02:50:58.915 JUST NUMBERS, IT'S HUMAN LIVES. 02:50:58.982 --> 02:51:00.550 THANK YOU SO MUCH FOR YOUR WORK 02:51:00.617 --> 02:51:02.518 TO SUPPORT THIS. THANK YOU. 02:51:02.585 --> 02:51:08.658 THANK YOU STEVEN. NEXT, ROWAN 02:51:08.725 --> 02:51:11.861 ISAACS WITH THE LAO. THANK YOU 02:51:11.928 --> 02:51:13.630 CHAIR. THANK YOU, MEMBERS OF 02:51:13.696 --> 02:51:14.664 THE COMMITTEE, ROWAN ISAACS 02:51:14.731 --> 02:51:16.833 FROM THE LAO. I'M JUST GOING TO 02:51:16.899 --> 02:51:18.034 MAKE A FEW QUICK INTRODUCTORY 02:51:18.101 --> 02:51:19.402 POINTS AND ACTUALLY TO 02:51:19.469 --> 02:51:20.837 SOMETHING THAT HAD SORT OF 02:51:20.903 --> 02:51:22.338 ALLUDED TO, I THINK WHEN WE 02:51:22.405 --> 02:51:23.573 TALK ABOUT THE BUDGET IMPACT OF 02:51:23.640 --> 02:51:25.308 THE PROGRAM, THERE ARE MANY 02:51:25.375 --> 02:51:26.309 DIFFERENT THINGS YOU COULD BE 02:51:26.376 --> 02:51:27.410 MEANING WHEN YOU SAY THAT. 02:51:27.477 --> 02:51:29.345 RIGHT. AND SO THE FIRST IS JUST 02:51:29.412 --> 02:51:30.480 THE GROSS FISCAL COST. AND HOW 02:51:30.546 --> 02:51:32.281 MUCH REVENUE IS THE STATE 02:51:32.348 --> 02:51:33.316 FOREGOING OR PAYING OUT IN 02:51:33.383 --> 02:51:34.484 REFUNDS AS A RESULT OF THE 02:51:34.550 --> 02:51:35.551 PROGRAM? BUT THERE'S ALSO, 02:51:35.618 --> 02:51:37.253 SECONDLY, MAYBE THE NET FISCAL 02:51:37.320 --> 02:51:38.454 COST, WHICH IS, YOU KNOW, WHEN 02:51:38.521 --> 02:51:40.256 WE ACCOUNT FOR THE FACT THAT 02:51:40.323 --> 02:51:41.290 THIS ADDITIONAL PRODUCTION THAT 02:51:41.357 --> 02:51:43.593 WE'RE INCENTIVIZING PRODUCES, 02:51:43.660 --> 02:51:45.061 PRODUCES TAX REVENUE, WHAT IS 02:51:45.128 --> 02:51:46.396 THE NET FISCAL COST OF THE 02:51:46.462 --> 02:51:47.864 PROGRAM AFTER ACCOUNTING FOR 02:51:47.930 --> 02:51:50.667 THAT? THE FINAL OR THIRD WAY 02:51:50.733 --> 02:51:51.801 YOU COULD THINK ABOUT IT IS 02:51:51.868 --> 02:51:53.236 THINK ABOUT THE NET FISCAL 02:51:53.302 --> 02:51:55.104 IMPACT, BUT RELATIVE TO 02:51:55.171 --> 02:51:56.539 ALTERNATIVE USES OF THE MONEY 02:51:56.606 --> 02:51:57.940 THAT THE STATE COULD HAVE USED 02:51:58.007 --> 02:52:00.109 THOSE FUNDS FOR, ESPECIALLY 02:52:00.176 --> 02:52:01.010 GIVEN THE REQUIREMENTS THAT ARE 02:52:01.077 --> 02:52:02.979 IN PLACE FOR A BALANCED BUDGET. 02:52:03.046 --> 02:52:04.847 AND THAT THIRD DISTINCTION IS 02:52:04.914 --> 02:52:06.182 PARTICULARLY TRICKY TO MEASURE 02:52:06.249 --> 02:52:07.784 JUST BECAUSE THERE ARE ALL 02:52:07.850 --> 02:52:09.318 THESE INDIRECT EFFECTS WHEN WE 02:52:09.385 --> 02:52:10.953 SPEND ON FILM PRODUCTION AND TV 02:52:11.020 --> 02:52:11.988 PRODUCTION, IT HAS ALL THESE 02:52:12.055 --> 02:52:14.524 CASCADING EFFECTS ON ON OTHER 02:52:14.590 --> 02:52:15.625 INDUSTRIES AND IN THE LOCAL 02:52:15.692 --> 02:52:17.794 AREA. BUT THESE ALTERNATIVE 02:52:17.860 --> 02:52:20.229 USES FOR MONEY FOR STATE 02:52:20.296 --> 02:52:22.031 RESOURCES ALSO HAVE MULTIPLIER 02:52:22.098 --> 02:52:23.533 EFFECTS. AND SO IT'S NOT ALWAYS 02:52:23.599 --> 02:52:25.334 CLEAR, YOU KNOW, RELATIVE TO 02:52:25.401 --> 02:52:27.070 EACH OTHER WHICH WHICH USE OF 02:52:27.136 --> 02:52:28.104 THE MONEY WOULD HAVE THE 02:52:28.171 --> 02:52:29.639 HIGHEST, THE HIGHEST BENEFIT TO 02:52:29.706 --> 02:52:33.976 THE STATE. ONE QUALIFICATION, 02:52:34.043 --> 02:52:35.144 THOUGH, TO ALL OF THAT, EVEN 02:52:35.211 --> 02:52:36.312 WHEN WE'RE THINKING ABOUT THESE 02:52:36.379 --> 02:52:37.280 DIFFERENT MEASURES, IS THAT, 02:52:37.346 --> 02:52:38.414 YOU KNOW, GOVERNMENT PROGRAMS 02:52:38.481 --> 02:52:39.982 AREN'T REQUIRED TO MAKE A 02:52:40.049 --> 02:52:41.117 PROFIT IN ORDER TO BE A GOOD 02:52:41.184 --> 02:52:43.086 USE OF STATE MONEY, YOU KNOW, 02:52:43.152 --> 02:52:45.088 MAKING A NET FISCAL RETURN 02:52:45.154 --> 02:52:46.589 POSITIVE NET FISCAL RETURN IS 02:52:46.656 --> 02:52:48.257 NOT NECESSARY NOR SUFFICIENT, 02:52:48.324 --> 02:52:49.625 YOU KNOW, FOR BEING A VIABLE OR 02:52:49.692 --> 02:52:51.561 A GOOD USE OF THE STATE'S MONEY. 02:52:51.627 --> 02:52:53.429 SO JUST TO POINT THAT OUT AS 02:52:53.496 --> 02:52:55.164 WELL, IN TERMS OF WHAT 02:52:55.231 --> 02:52:56.599 AVAILABLE EVIDENCE TELLS US 02:52:56.666 --> 02:52:58.868 CURRENTLY, YOU KNOW, WE DO FIND 02:52:58.935 --> 02:53:00.036 IN THE EXISTING LITERATURE AND 02:53:00.103 --> 02:53:02.038 WHAT'S OUT THERE IS THAT 02:53:02.105 --> 02:53:04.907 FUNDAMENTALLY, TAX CREDITS DO 02:53:04.974 --> 02:53:06.776 INCREASINGLY AND DEFINITELY 02:53:06.843 --> 02:53:07.810 INCENTIVIZE PRODUCTIONS TO 02:53:07.877 --> 02:53:09.645 SWITCH LOCATIONS AND DO 02:53:09.712 --> 02:53:13.149 INFLUENCE THAT DECISION GREATLY. 02:53:13.216 --> 02:53:14.617 ALTHOUGH THERE IS STILL A CASE 02:53:14.684 --> 02:53:16.252 WHERE WE HAVE TO THINK ABOUT 02:53:16.319 --> 02:53:17.353 THE NUMBER OF PRODUCTIONS THAT 02:53:17.420 --> 02:53:18.387 WOULD HAVE PRODUCED IN THE 02:53:18.454 --> 02:53:19.756 STATE REGARDLESS. AND SO THAT'S 02:53:19.822 --> 02:53:21.424 A BIG QUESTION MARK. AND THAT'S 02:53:21.491 --> 02:53:22.525 SOMETHING THAT PEOPLE TRY TO 02:53:22.592 --> 02:53:23.726 ESTIMATE. AND IT'S NOT ALWAYS 02:53:23.793 --> 02:53:25.394 EASY TO DO. ACROSS VARIOUS 02:53:25.461 --> 02:53:26.496 STUDIES THAT HAVE BEEN DONE 02:53:26.562 --> 02:53:27.663 OVER THE YEARS. YOU KNOW, OUR 02:53:27.730 --> 02:53:29.232 OFFICE HAD PREVIOUSLY ASSESSED 02:53:29.298 --> 02:53:30.933 THE FILM TAX CREDIT AND HAD, 02:53:31.000 --> 02:53:33.302 YOU KNOW, GIVEN A PRETTY BROAD 02:53:33.369 --> 02:53:35.104 RANGE OF POSSIBLE ESTIMATES OF 02:53:35.171 --> 02:53:36.272 ROUGHLY ONE QUARTER TO THREE 02:53:36.339 --> 02:53:37.440 QUARTERS OF PRODUCTIONS THAT 02:53:37.507 --> 02:53:40.176 MAY HAVE FILMED IN THE STATE 02:53:40.243 --> 02:53:41.344 ANYWAY, REGARDLESS OF GETTING A 02:53:41.410 --> 02:53:42.645 TAX CREDIT OR NOT. AND 02:53:42.712 --> 02:53:43.746 OBVIOUSLY, THESE EFFECTS ARE 02:53:43.813 --> 02:53:46.315 LIKELY TO CHANGE OVER TIME. 02:53:46.382 --> 02:53:47.817 SOME STUDIES ALSO TRY TO PUT 02:53:47.884 --> 02:53:49.919 THESE SORT OF EFFECTS INTO TAX, 02:53:49.986 --> 02:53:52.388 INTO SORT OF INTO GROSS OR NET 02:53:52.455 --> 02:53:54.957 FISCAL RETURNS. THE BROADER 02:53:55.024 --> 02:53:55.758 LITERATURE SUGGESTS THAT, YOU 02:53:55.825 --> 02:53:58.327 KNOW, TYPICALLY ABOUT 20 TO 02:53:58.394 --> 02:54:00.396 $0.50 PER DOLLAR GIVEN TO FILM 02:54:00.463 --> 02:54:02.131 TAX CREDITS IS BROUGHT BACK IN 02:54:02.198 --> 02:54:03.933 TERMS OF INCREASED REVENUES, 02:54:04.000 --> 02:54:05.368 ALTHOUGH I WOULD SAY THAT, YOU 02:54:05.434 --> 02:54:07.170 KNOW, WHEN WE THINK OF 02:54:07.236 --> 02:54:08.304 CALIFORNIA, CALIFORNIA'S FILM 02:54:08.371 --> 02:54:10.339 TAX CREDIT IS DESIGNED IN A WAY 02:54:10.406 --> 02:54:12.208 THAT, YOU KNOW, IS LIKELY TO 02:54:12.275 --> 02:54:14.477 INCREASE THE NET FISCAL RETURN 02:54:14.544 --> 02:54:15.545 OF THE PROGRAM COMPARED TO 02:54:15.611 --> 02:54:16.579 STATES LIKE GEORGIA, FOR 02:54:16.646 --> 02:54:18.714 EXAMPLE, OR OTHER INTERNATIONAL 02:54:18.781 --> 02:54:20.516 COUNTRIES. YOU KNOW, CALIFORNIA 02:54:20.583 --> 02:54:22.151 HAS A COMPETITIVE PROGRAM. IT 02:54:22.218 --> 02:54:24.453 HAS A JOBS RATIO. IT TENDS TO 02:54:24.520 --> 02:54:27.323 PRIORITIZE PRODUCTIONS AND 02:54:27.390 --> 02:54:28.424 APPLICANTS THAT WOULD PROVIDE 02:54:28.491 --> 02:54:30.226 MORE JOBS AND MORE SPENDING PER 02:54:30.293 --> 02:54:33.129 DOLLAR OF CREDIT GIVEN. AT THE 02:54:33.196 --> 02:54:34.897 SAME TIME, YOU KNOW, THERE ARE 02:54:34.964 --> 02:54:36.465 TRADE OFFS WITH THERE ARE TRADE 02:54:36.532 --> 02:54:38.000 OFFS WITH, YOU KNOW, THINGS 02:54:38.067 --> 02:54:39.068 LIKE GENEROSITY. WE RECENTLY 02:54:39.135 --> 02:54:40.336 INCREASED THE GENEROSITY OF THE 02:54:40.403 --> 02:54:41.404 PROGRAM. YOU KNOW, A HIGHER 02:54:41.470 --> 02:54:43.239 CREDIT CAN MEAN FEWER SUPPORTED 02:54:43.306 --> 02:54:44.640 PROJECTS OVERALL BECAUSE EACH 02:54:44.707 --> 02:54:46.342 PROJECT TAKES UP A LARGER PIECE 02:54:46.409 --> 02:54:48.477 OF THE PIE. BUT WE MIGHT BE 02:54:48.544 --> 02:54:50.413 ABLE TO POTENTIALLY ATTRACT 02:54:50.479 --> 02:54:52.181 STRONGER APPLICANTS IF OUR 02:54:52.248 --> 02:54:53.683 CREDIT IS MORE GENEROUS. SO 02:54:53.749 --> 02:54:55.017 THERE ARE A LOT OF AMBIGUITIES 02:54:55.084 --> 02:54:56.853 AND UNCERTAINTIES ABOUT WHICH 02:54:56.919 --> 02:54:59.388 WAY, ABOUT WHICH WAY, WHICH WAY. 02:54:59.455 --> 02:55:00.857 YOU KNOW, DIFFERENT ASPECTS OF 02:55:00.923 --> 02:55:03.025 THE PROGRAM CONTRIBUTE. BUT 02:55:03.092 --> 02:55:04.827 CALIFORNIA'S CALIFORNIA DOES 02:55:04.894 --> 02:55:06.262 HAVE, YOU KNOW, WHAT WE VIEW AS 02:55:06.329 --> 02:55:08.030 A BETTER SET UP, MORE 02:55:08.097 --> 02:55:09.332 COMPETITIVE PROCESS THAN A LOT 02:55:09.398 --> 02:55:11.767 OF OTHER PROGRAMS. AND THEN 02:55:11.834 --> 02:55:13.069 JUST VERY QUICKLY, FINALLY, YOU 02:55:13.135 --> 02:55:14.003 KNOW, THERE HAVE BEEN SOME 02:55:14.070 --> 02:55:15.805 RECENT CHANGES TO THE FILM TAX 02:55:15.872 --> 02:55:16.939 CREDIT, YOU KNOW, OUTSIDE OF 02:55:17.006 --> 02:55:18.774 JUST THE INCREASING OF THE SIZE 02:55:18.841 --> 02:55:19.909 OF THE PROGRAM, WHICH, YOU KNOW, 02:55:19.976 --> 02:55:21.143 SORT OF MAGNIFIES THE EFFECTS 02:55:21.210 --> 02:55:22.812 OF THE PROGRAM. YOU KNOW, I 02:55:22.879 --> 02:55:23.880 THINK THE ADDITION OF AND 02:55:23.946 --> 02:55:25.348 EXPANSION OF REFUNDABILITY, THE 02:55:25.414 --> 02:55:26.415 INCREASING OF THE GENEROSITY OF 02:55:26.482 --> 02:55:28.150 THE CREDIT, THINGS LIKE THAT 02:55:28.217 --> 02:55:29.252 ARE GOING TO ACCELERATE THE 02:55:29.318 --> 02:55:31.787 COST TO THE STATE. AND, YOU 02:55:31.854 --> 02:55:34.690 KNOW, MAY MEAN, LIKE I JUST 02:55:34.757 --> 02:55:36.158 MENTIONED BEFORE, YOU KNOW, 02:55:36.225 --> 02:55:37.727 COULD COULD GO EITHER WAY. BUT, 02:55:37.793 --> 02:55:40.796 YOU KNOW, THERE'S MAYBE A 02:55:40.863 --> 02:55:42.231 POSSIBILITY THAT WE CAN, YOU 02:55:42.298 --> 02:55:43.332 KNOW, THE MORE GENEROUS OUR 02:55:43.399 --> 02:55:44.367 CREDIT IS, THE FEWER 02:55:44.433 --> 02:55:45.835 PRODUCTIONS WE CAN FUND IN 02:55:45.902 --> 02:55:47.270 TOTAL. BUT I'LL STOP THERE. AND 02:55:47.336 --> 02:55:48.404 THANK YOU VERY MUCH FOR YOUR 02:55:48.471 --> 02:55:50.072 TIME. THANK YOU RON. APPRECIATE. 02:55:50.139 --> 02:55:54.210 APPRECIATE THAT. NEXT, I'D LIKE 02:55:54.277 --> 02:55:57.747 TO RECOGNIZE MATT HORTON. OH, 02:55:57.813 --> 02:55:59.815 THANKS. THANKS, CHAIR CHAIRMAN 02:55:59.882 --> 02:56:01.751 BURR, AND TO THE COMMITTEE FOR 02:56:01.817 --> 02:56:03.152 YOUR TIME. IT'S AN HONOR TO BE 02:56:03.219 --> 02:56:05.087 HERE. AS YOU MENTIONED AT THE 02:56:05.154 --> 02:56:07.790 TOP, I USED TO WORK WITH MY 02:56:07.857 --> 02:56:08.824 COLLEAGUES AT THE CALIFORNIA 02:56:08.891 --> 02:56:09.959 CENTER, WITH THE MILKEN 02:56:10.026 --> 02:56:11.360 INSTITUTE, AND IN THAT CAPACITY, 02:56:11.427 --> 02:56:13.162 WE DID A LOT OF STUDIES ON 02:56:13.229 --> 02:56:14.664 CALIFORNIA'S INNOVATION BASED 02:56:14.730 --> 02:56:16.065 ECONOMY AND TOOLS AND 02:56:16.132 --> 02:56:17.833 STRATEGIES THAT CAN ENHANCE AND, 02:56:17.900 --> 02:56:20.736 AND BOLSTER THAT. WITH 02:56:20.803 --> 02:56:23.272 ENTERTAINMENT SECTOR BEING VERY 02:56:23.339 --> 02:56:24.640 ENTRENCHED IN THAT ANALYSIS. 02:56:24.707 --> 02:56:27.944 AND, AND SO, YOU KNOW, AND THE 02:56:28.010 --> 02:56:29.211 LAST STUDY WE DID ON THIS TOPIC 02:56:29.278 --> 02:56:31.514 WAS RIGHT IN ADVANCE OF THE, 02:56:31.580 --> 02:56:35.551 THE PANDEMIC RECOVERY. SO, YOU 02:56:35.618 --> 02:56:38.387 KNOW, WHEN THE STATE FOREGOES A 02:56:38.454 --> 02:56:40.556 DOLLAR OF REVENUE THROUGH A TAX 02:56:40.623 --> 02:56:41.724 CREDIT, YOU KNOW, I THINK IT'S 02:56:41.791 --> 02:56:42.858 GOOD TO REMEMBER THAT THE 02:56:42.925 --> 02:56:44.794 ACTIVITY IT HOPES TO BUY 02:56:44.860 --> 02:56:48.097 ARRIVES IN THREE PRIMARY LAYERS. 02:56:48.164 --> 02:56:49.498 AND UNDERSTANDING HOW WE SCORE 02:56:49.565 --> 02:56:51.267 THOSE LAYERS IN TERMS OF, OF 02:56:51.334 --> 02:56:52.802 THE BUDGET, I THINK IS REALLY 02:56:52.868 --> 02:56:54.270 IMPORTANT IN TERMS OF, OF, OF, 02:56:54.337 --> 02:56:56.005 OF HOW YOU NAVIGATE THIS, THIS 02:56:56.072 --> 02:56:58.207 POLICY DECISION MOVING FORWARD, 02:56:58.274 --> 02:56:59.608 ESPECIALLY AROUND THE CAP. SO 02:56:59.675 --> 02:57:01.377 LIKE THE FIRST LAYER BEING THE 02:57:01.444 --> 02:57:02.878 DIRECT, YOU KNOW, IN TERMS OF 02:57:02.945 --> 02:57:06.115 FILM AND, AND TV, YOU KNOW, 02:57:06.182 --> 02:57:09.018 THAT THOSE DIRECT EFFECTS ARE 02:57:09.085 --> 02:57:10.419 WAGES, STAGE RENTAL EQUIPMENT, 02:57:10.486 --> 02:57:14.790 LOCATION FEES, INDIRECT ARE 02:57:14.857 --> 02:57:16.559 MORE ASSOCIATED WITH CATERING, 02:57:16.625 --> 02:57:18.394 LUMBER SET MATERIALS, 02:57:18.461 --> 02:57:20.863 TRANSPORTATION, POST-PRODUCTION, 02:57:20.930 --> 02:57:24.100 AND VFX AND INSURANCE. AND 02:57:24.166 --> 02:57:25.468 ESPECIALLY, YOU KNOW, AS A SIDE 02:57:25.534 --> 02:57:27.003 NOTE, YOU KNOW, IN THE TIME OF 02:57:27.069 --> 02:57:29.171 INCREASING UNCERTAINTY AROUND 02:57:29.238 --> 02:57:31.340 AI, YOU KNOW, AND HARBORING 02:57:31.407 --> 02:57:32.408 POST-PRODUCTION, I THINK IS, IS 02:57:32.475 --> 02:57:34.877 REALLY VITAL AND THEN INDUCED. 02:57:34.944 --> 02:57:37.813 SO THOSE INDUCED EFFECTS REALLY, 02:57:37.880 --> 02:57:39.949 YOU KNOW, SPEAK TO MORE OF THE 02:57:40.016 --> 02:57:41.417 SPILLOVER, YOU KNOW, THE 02:57:41.484 --> 02:57:43.185 HOUSING, THE RETAIL, THE 02:57:43.252 --> 02:57:44.086 RESTAURANTS, THE HEALTHCARE, 02:57:44.153 --> 02:57:48.190 THE EDUCATION. AND THOSE ARE 02:57:48.257 --> 02:57:50.760 LARGER, ESPECIALLY IN TERMS OF, 02:57:50.826 --> 02:57:53.729 OF THOSE INDUCED EFFECTS WHEN 02:57:53.796 --> 02:57:55.898 WE'RE TALKING ABOUT JOBS THAT, 02:57:55.965 --> 02:57:57.833 THAT ARE THAT PAY A HIGHER WAGE 02:57:57.900 --> 02:58:00.836 AND, AND, AND, YOU KNOW, OUR 02:58:00.903 --> 02:58:03.706 STUDY, YOU KNOW, WE FOUND BACK 02:58:03.773 --> 02:58:05.508 AND I THINK THE OTIS COLLEGE 02:58:05.574 --> 02:58:08.411 REPORT OF OF 26 KIND OF 02:58:08.477 --> 02:58:10.513 UNDERSCORES THIS. THE CREATIVE 02:58:10.579 --> 02:58:13.416 ECONOMY, WAGES PAY MORE THAN 02:58:13.482 --> 02:58:15.951 2.5 TIMES THE CALIFORNIA 02:58:16.018 --> 02:58:17.820 AVERAGE. HIGHER JOBS CARRY A 02:58:17.887 --> 02:58:20.322 LARGER INDUCED FOOTPRINT THAN 02:58:20.389 --> 02:58:22.124 THAN LARGER PERSONAL INCOME TAX 02:58:22.191 --> 02:58:23.559 FOOTPRINT. AND I THINK OUR AND 02:58:23.626 --> 02:58:25.327 IT'S BEEN SAID A LOT THROUGH 02:58:25.394 --> 02:58:27.096 THIS HEARING THAT, YOU KNOW, 02:58:27.163 --> 02:58:29.265 OUR CORE ADVANTAGE HERE IS THE 02:58:29.331 --> 02:58:31.400 ECOSYSTEM. AND THAT'S THAT 02:58:31.467 --> 02:58:34.303 ECOSYSTEM, THE LOCAL SUPPLY 02:58:34.370 --> 02:58:37.139 CHAIN VALUE CAPTURE IS, IS 02:58:37.206 --> 02:58:39.041 REALLY EMBODIED IN THE INDIRECT 02:58:39.108 --> 02:58:41.143 EFFECTS. AND, YOU KNOW, THOSE 02:58:41.210 --> 02:58:42.611 ONLY ACCRUE IN STATE IF 02:58:42.678 --> 02:58:44.080 SUPPLIERS ARE IN STATE. 02:58:44.146 --> 02:58:45.214 CALIFORNIA'S DEPTH IN BOTH 02:58:45.281 --> 02:58:46.882 RESEARCH AND PRODUCTION SUPPLY 02:58:46.949 --> 02:58:49.051 CHAINS IS OUR INHERENT 02:58:49.118 --> 02:58:51.253 ADVANTAGE, JUST LIKE IT WAS IN 02:58:51.320 --> 02:58:53.422 DETROIT BEFORE IT WASN'T. AND 02:58:53.489 --> 02:58:54.790 EVERY PRODUCTION THAT LEAVES 02:58:54.857 --> 02:58:57.026 ERODES IT. AND THAT EROSION 02:58:57.093 --> 02:58:58.627 COMPOUNDS BECAUSE OF VENDORS, 02:58:58.694 --> 02:58:59.895 AS YOU'VE HEARD, FOLLOW THE 02:58:59.962 --> 02:59:05.634 WORK. SO. I THINK, YOU KNOW, 02:59:05.701 --> 02:59:07.169 TAKING INTO ACCOUNT, YOU KNOW, 02:59:07.236 --> 02:59:09.238 HOW THOSE THREE LAYERS INTERACT 02:59:09.305 --> 02:59:11.740 WITH TIMING, MOBILITY ARE 02:59:11.807 --> 02:59:13.542 INDUCED, SHARE THOSE SPILLOVER 02:59:13.609 --> 02:59:17.513 EFFECTS REALLY BOIL DOWN TO, 02:59:17.580 --> 02:59:19.415 YOU KNOW, THIS, THIS Kò NOTION 02:59:19.482 --> 02:59:23.285 OF CERTAINTY AND, AND HOW THE, 02:59:23.352 --> 02:59:25.421 THE TAX CREDIT KIND OF WORKS TO 02:59:25.488 --> 02:59:29.091 PROVIDE THAT CERTAINTY. OR IF 02:59:29.158 --> 02:59:32.595 IT IS CAPPING. AND I'M SORRY, I 02:59:32.661 --> 02:59:34.463 DIDN'T SEE THAT. OH, PERFECT. 02:59:34.530 --> 02:59:36.732 I'LL FINISH UP HERE. SO I MEAN, 02:59:36.799 --> 02:59:38.400 I THINK THE PRIMARY TAKEAWAY 02:59:38.467 --> 02:59:39.835 AND I'LL TAKE SOME SOME 02:59:39.902 --> 02:59:41.270 QUESTIONS LATER IF YOU HAVE ANY 02:59:41.337 --> 02:59:44.874 ON THE, ON THE, ON, ON, ON THE 02:59:44.940 --> 02:59:47.743 CAP AND MAYBE THE, THE, THE 02:59:47.810 --> 02:59:50.212 BENEFITS OF OR MAYBE THE 02:59:50.279 --> 02:59:52.481 INHIBIT THE INHIBITOR NATURE OF 02:59:52.548 --> 02:59:54.950 THE CAP, BUT, YOU KNOW, TAX 02:59:55.017 --> 02:59:57.486 CREDITS DO NOT CREATE ECONOMIC 02:59:57.553 --> 02:59:59.722 ACTIVITY. ECOSYSTEMS DO A 02:59:59.788 --> 03:00:01.857 CREDIT EARNS ITS COST WHEN IT 03:00:01.924 --> 03:00:03.292 KEEPS MOBILE, HIGH WAGE WORK 03:00:03.359 --> 03:00:04.727 INSIDE AN ECOSYSTEM THAT IS 03:00:04.793 --> 03:00:06.128 ALREADY DEEP ENOUGH TO CAPTURE 03:00:06.195 --> 03:00:07.830 THE SUPPLY CHAIN AND HOUSEHOLD 03:00:07.897 --> 03:00:10.065 SPENDING THAT FOLLOWS. SO FOR 03:00:10.132 --> 03:00:13.669 FILM AND TELEVISION, YOU KNOW, 03:00:13.736 --> 03:00:15.137 THE QUESTION FOR THE BUDGET IS 03:00:15.204 --> 03:00:16.572 NOT WHETHER THE GROSS 03:00:16.639 --> 03:00:18.174 MULTIPLIER IS X, IT'S WHETHER 03:00:18.240 --> 03:00:19.508 THE STATE WILL GIVE THE PROGRAM 03:00:19.575 --> 03:00:21.243 ENOUGH CERTAINTY FOR THE 03:00:21.310 --> 03:00:23.012 INDIRECT AND INDUCED LAYERS TO 03:00:23.078 --> 03:00:25.214 COMPOUND, AND ENOUGH RIGOR IN 03:00:25.281 --> 03:00:26.248 EVALUATION TO PROVE THAT THEY 03:00:26.315 --> 03:00:31.654 DID. OKAY, GREAT. THANK YOU. 03:00:31.720 --> 03:00:33.155 NEXT WE HAVE CASSANDRA HAZELTON, 03:00:33.222 --> 03:00:35.658 PRESIDENT OF FLICKS. WELCOME. 03:00:35.724 --> 03:00:37.092 THANK YOU. THANK YOU, CHAIR, 03:00:37.159 --> 03:00:38.694 AND MEMBERS OF THE COMMITTEE. 03:00:38.761 --> 03:00:39.929 AS YOU SAID, I'M CASSANDRA 03:00:39.995 --> 03:00:41.030 HESSELTINE, FILM COMMISSIONER 03:00:41.096 --> 03:00:42.498 FOR HUMBOLDT AND DEL NORTE 03:00:42.565 --> 03:00:43.899 COUNTIES, AS WELL AS PRESIDENT 03:00:43.966 --> 03:00:46.068 OF FLICKS. AND FOR 16 YEARS, 03:00:46.135 --> 03:00:47.503 I'VE BEEN THE BOOTS ON THE 03:00:47.570 --> 03:00:49.004 GROUND, YOU KNOW, HELPING 03:00:49.071 --> 03:00:50.072 PRODUCTIONS WORK IN OUR 03:00:50.139 --> 03:00:50.940 COMMUNITIES AND SEEING WHERE 03:00:51.006 --> 03:00:53.976 THE DOLLARS GO ACROSS DIFFERENT 03:00:54.043 --> 03:00:55.044 VERSIONS OF THE CALIFORNIA'S 03:00:55.110 --> 03:00:56.478 FILM TAX CREDIT PROGRAM, WE 03:00:56.545 --> 03:00:58.314 HAVE HOSTED PARTICIPATING 03:00:58.380 --> 03:00:59.748 PRODUCTIONS, INCLUDING SWISS 03:00:59.815 --> 03:01:01.584 ARMY MAN WITH DANIEL RADCLIFFE, 03:01:01.650 --> 03:01:03.352 BIRD BOX WITH SANDRA BULLOCK, 03:01:03.419 --> 03:01:05.154 WHICH HELD NETFLIX FILM VIEWING 03:01:05.221 --> 03:01:07.356 HOURS RECORD FOR NEARLY THREE 03:01:07.423 --> 03:01:08.757 YEARS. THE SKY IS EVERYWHERE 03:01:08.824 --> 03:01:10.593 DURING THE PANDEMIC AND ONE 03:01:10.659 --> 03:01:12.361 BATTLE AFTER ANOTHER, WHICH 03:01:12.428 --> 03:01:13.862 RESULTED IN MY OFFICE RECEIVING 03:01:13.929 --> 03:01:15.664 THE OUTSTANDING FILM COMMISSION 03:01:15.731 --> 03:01:17.766 INTERNATIONAL AWARD FOR 2026 03:01:17.833 --> 03:01:19.235 FROM THE LOCATION MANAGERS 03:01:19.301 --> 03:01:21.337 GUILD INTERNATIONAL. THOSE ARE 03:01:21.403 --> 03:01:22.871 JUST SOME OF THE EXAMPLES OF 03:01:22.938 --> 03:01:24.974 THIS PROGRAM BRINGING WORK AND 03:01:25.040 --> 03:01:27.142 SPENDING TO OUR REGION. WHEN A 03:01:27.209 --> 03:01:28.577 PRODUCTION COMES TO RURAL 03:01:28.644 --> 03:01:30.012 CALIFORNIA, IT BRINGS OUTSIDE 03:01:30.079 --> 03:01:32.848 DOLLARS. IT HIRES PEOPLE, BOOKS, 03:01:32.915 --> 03:01:35.451 ROOMS, RENTS LOCATIONS, AND 03:01:35.517 --> 03:01:38.354 BUYS SUPPLIES. ONE BATTLE AFTER 03:01:38.420 --> 03:01:40.856 ANOTHER REPORTED MORE THAN 2.1 03:01:40.923 --> 03:01:43.292 MILLION IN SPENDING IN EUREKA, 03:01:43.359 --> 03:01:44.793 INCLUDING NEARLY HALF $1 03:01:44.860 --> 03:01:47.029 MILLION IN LOCAL WAGES, MORE 03:01:47.096 --> 03:01:50.165 THAN 900 JOBS AND OVER 90 03:01:50.232 --> 03:01:53.369 VENDORS. AND IT CAME IN JANUARY. 03:01:53.435 --> 03:01:55.638 IN RURAL CALIFORNIA, OFF SEASON 03:01:55.704 --> 03:01:57.339 PRODUCTIONS FILLS HOTEL ROOMS, 03:01:57.406 --> 03:02:00.109 BRINGS CUSTOMERS TO RESTAURANTS 03:02:00.175 --> 03:02:02.044 WHEN THEY NEED BUSINESS MOST, 03:02:02.111 --> 03:02:03.812 AND THE TIMING MAKES THOSE 03:02:03.879 --> 03:02:06.382 DOLLARS ESPECIALLY VALUABLE. 03:02:06.448 --> 03:02:08.517 THE SPENDING EXTENDS BEYOND 03:02:08.584 --> 03:02:10.686 PRODUCTION PURCHASES. A 03:02:10.753 --> 03:02:12.855 VISITING CREW CAN MEAN 2 TO 300 03:02:12.921 --> 03:02:14.523 PEOPLE GOING OUT FOR DINNER 03:02:14.590 --> 03:02:16.859 EVERY NIGHT, SHOPPING AND 03:02:16.925 --> 03:02:18.627 EXPLORING ON THEIR DAYS OFF, OR 03:02:18.694 --> 03:02:20.429 THOSE MEALS, SHOPPING TRIPS AND 03:02:20.496 --> 03:02:22.598 ACTIVITY ACTIVITIES ARE 03:02:22.665 --> 03:02:24.667 ADDITIONAL SALES FOR OUR LOCAL 03:02:24.733 --> 03:02:27.603 BUSINESSES, LOCAL WORKERS AND 03:02:27.670 --> 03:02:29.038 BUSINESSES ALSO SPEND THEIR 03:02:29.104 --> 03:02:30.439 EARNINGS CIRCULATING MONEY 03:02:30.506 --> 03:02:34.076 THROUGH OUT OUR ECONOMY. THIS 03:02:34.143 --> 03:02:35.544 STATEWIDE, THE MOTION PICTURE 03:02:35.611 --> 03:02:38.080 ASSOCIATION REPORTS THAT 4500 03:02:38.147 --> 03:02:40.516 JOBS AND 700 VENDORS FOR ONE 03:02:40.582 --> 03:02:42.351 BATTLE AFTER ANOTHER, WITH 03:02:42.418 --> 03:02:43.819 SPENDING REACHING FROM EUREKA 03:02:43.886 --> 03:02:46.355 TO SACRAMENTO TO LOS ANGELES, 03:02:46.422 --> 03:02:49.224 SAN DIEGO, AS WELL AS FOR OTHER 03:02:49.291 --> 03:02:50.092 COMMUNITIES THROUGHOUT THE 03:02:50.159 --> 03:02:53.262 STATE. BUT KEEPING THE HONOR, 03:02:53.329 --> 03:02:56.398 THE OPPORTUNITY HERE TOOK A 03:02:56.465 --> 03:02:57.833 FILMMAKER COMMITTED TO 03:02:57.900 --> 03:02:59.702 CALIFORNIA, PAUL THOMAS 03:02:59.768 --> 03:03:01.036 ANDERSON, ONE OF OUR LEADING 03:03:01.103 --> 03:03:02.338 DIRECTORS, USED HIS INFLUENCE 03:03:02.404 --> 03:03:04.340 TO KEEP THIS PRODUCTION HERE, 03:03:04.406 --> 03:03:05.474 WITH THE TAX CREDIT HELPING 03:03:05.541 --> 03:03:07.543 MAKE THE CHOICE POSSIBLE. WE 03:03:07.609 --> 03:03:08.911 SHOULD NOT HAVE TO DEPEND ON A 03:03:08.977 --> 03:03:11.146 DIRECTOR OF HIS STATURE 03:03:11.213 --> 03:03:12.948 FIGHTING FOR CALIFORNIA. WE 03:03:13.015 --> 03:03:14.550 NEED AN INCENTIVE STRONG ENOUGH 03:03:14.616 --> 03:03:16.518 THAT CHOOSING CALIFORNIA MAKES 03:03:16.585 --> 03:03:18.354 FINANCIAL SENSE. FROM THE 03:03:18.420 --> 03:03:20.856 BEGINNING. AS IT WAS NOTED 03:03:20.923 --> 03:03:22.324 EARLIER LAST WEEK, FILM LA 03:03:22.391 --> 03:03:23.726 REPORTED THAT THE TAX CREDIT 03:03:23.792 --> 03:03:25.928 PROJECT NOW ACCOUNTS FOR 40% OF 03:03:25.994 --> 03:03:27.296 SCRIPTED AND ON LOCATION 03:03:27.363 --> 03:03:29.098 FILMING IN LOS ANGELES, NEARLY 03:03:29.164 --> 03:03:31.633 DOUBLE LAST YEAR'S SHARE, WITH 03:03:31.700 --> 03:03:32.801 INCENTIVIZED PRODUCTIONS MORE 03:03:32.868 --> 03:03:34.169 THAN DOUBLING THEIR SHOOT DAYS 03:03:34.236 --> 03:03:35.571 COMPARED TO THE SAME PERIOD 03:03:35.637 --> 03:03:38.140 LAST YEAR. AND WHAT SHOULD BE 03:03:38.207 --> 03:03:39.908 REMEMBERED IN ADDITION TO THAT 03:03:39.975 --> 03:03:41.343 STATISTIC, IS WHAT WAS SAID BY 03:03:41.410 --> 03:03:43.212 ONE OF THE PRODUCERS WHOSE SHOW 03:03:43.278 --> 03:03:46.048 IS NOW ABLE TO SHOOT HERE. LOS 03:03:46.115 --> 03:03:47.916 ANGELES IS THE BIG LEAGUES, AND 03:03:47.983 --> 03:03:49.084 AFTER MORE THAN A DECADE AWAY, 03:03:49.151 --> 03:03:50.919 I HAVE FORGOTTEN WHAT I WAS 03:03:50.986 --> 03:03:52.254 MISSING FROM THE CAST AND CREW 03:03:52.321 --> 03:03:54.690 TO THE CATERERS. EVERYONE HERE 03:03:54.757 --> 03:03:56.825 BRINGS THEIR A-GAME. HONESTLY, 03:03:56.892 --> 03:04:00.062 MOVING HERE ELEVATES EVERYTHING. 03:04:00.129 --> 03:04:01.563 ELWOOD REID, SHOWRUNNER AND 03:04:01.630 --> 03:04:02.965 EXECUTIVE PRODUCER OF THE HIT 03:04:03.031 --> 03:04:05.501 CBS DRAMA TRACK TRACKER, WHICH 03:04:05.567 --> 03:04:07.302 MOVED PRODUCTION FROM BRITISH 03:04:07.369 --> 03:04:08.737 COLUMBIA TO LOS ANGELES FOR ITS 03:04:08.804 --> 03:04:12.341 FOURTH SEASON. THE EARLIEST 03:04:12.408 --> 03:04:13.409 DOCUMENTED MOTION PICTURE, 03:04:13.475 --> 03:04:15.978 FILMED IN LOS ANGELES, DATES 03:04:16.044 --> 03:04:19.581 DECEMBER 31ST, 1897. FOR NEARLY 03:04:19.648 --> 03:04:21.383 130 YEARS, CALIFORNIA HAS 03:04:21.450 --> 03:04:23.152 CULTIVATED WORLD CLASS FILM 03:04:23.218 --> 03:04:24.586 CREWS WHOSE EXPERTISE CANNOT 03:04:24.653 --> 03:04:27.089 SIMPLY BE RECREATED OVERNIGHT. 03:04:27.156 --> 03:04:28.490 WE CANNOT AFFORD TO LET 03:04:28.557 --> 03:04:29.958 PRODUCERS LIKE ELWOOD REID 03:04:30.025 --> 03:04:31.794 FORGET WHAT CALIFORNIA HAS TO 03:04:31.860 --> 03:04:33.996 OFFER, BECAUSE OTHER STATES AND 03:04:34.062 --> 03:04:35.130 COUNTRIES HAVE MADE IT MORE 03:04:35.197 --> 03:04:37.499 FINANCIALLY ATTRACTIVE TO FILM 03:04:37.566 --> 03:04:40.402 ELSEWHERE. ANOTHER IMPORTANT 03:04:40.469 --> 03:04:42.604 FACTOR IS ECONOMIC BENEFITS 03:04:42.671 --> 03:04:44.039 CONTINUE LONG AFTER THEIR 03:04:44.106 --> 03:04:45.841 RELEASE THROUGH FILM TOURISM, 03:04:45.908 --> 03:04:47.242 ONE BATTLE AFTER ANOTHER, AND 03:04:47.309 --> 03:04:48.310 AN ACADEMY AWARD WINNING 03:04:48.377 --> 03:04:49.445 PICTURE FOR BEST WINNER FOR 03:04:49.511 --> 03:04:50.846 BEST PICTURE, IS NOW BRINGING 03:04:50.913 --> 03:04:53.682 VISITORS TO EUREKA. TO FIND THE 03:04:53.749 --> 03:04:54.883 PAY PHONE AT OUR LOCAL GROCERY 03:04:54.950 --> 03:04:58.220 STORE. IT'S TRUE THE INTEREST 03:04:58.287 --> 03:05:00.589 HAS GENERATED ITS OWN COVERAGE, 03:05:00.656 --> 03:05:01.957 SFGATE WROTE ABOUT THE PAY 03:05:02.024 --> 03:05:03.492 PHONE AND PEOPLE COMING TO SEE 03:05:03.559 --> 03:05:04.893 IT. THE NEW YORK TIMES 03:05:04.960 --> 03:05:06.361 PUBLISHED A DRIVING TOUR OF THE 03:05:06.428 --> 03:05:08.797 MOVIE'S CALIFORNIA LOCATIONS 03:05:08.864 --> 03:05:11.033 THROUGHOUT, AND THOSE VENDORS 03:05:11.099 --> 03:05:13.135 SPEND MONEY ON HOTELS, 03:05:13.202 --> 03:05:15.337 RESTAURANTS, TRANSPORTATION, 03:05:15.404 --> 03:05:17.139 SHOPPING. OUR REDWOOD COAST 03:05:17.206 --> 03:05:18.640 MUSEUM OF CINEMA AND AN MAP OF 03:05:18.707 --> 03:05:20.209 THE MOVIES GIVES THEM MORE 03:05:20.275 --> 03:05:23.278 REASONS TO TO EXPLORE AND STAY. 03:05:23.345 --> 03:05:24.713 AND WE KNOW THAT THIS CAN 03:05:24.780 --> 03:05:27.249 CONTINUE FOR DECADES. RETURN OF 03:05:27.316 --> 03:05:28.984 THE JEDI. FILMED IN BOTH 03:05:29.051 --> 03:05:30.452 HUMBOLDT AND DEL NORTE COUNTIES 03:05:30.519 --> 03:05:32.955 MORE THAN 44 YEARS AGO, 03:05:33.021 --> 03:05:34.423 VISITORS STILL COME TO 03:05:34.490 --> 03:05:35.491 EXPERIENCE THE REDWOOD 03:05:35.557 --> 03:05:36.492 LANDSCAPES WHERE THE SPEEDER 03:05:36.558 --> 03:05:38.360 CHASE HAPPENED AND THE EWOKS 03:05:38.427 --> 03:05:40.562 LIVED. THAT INTEREST LED US TO 03:05:40.629 --> 03:05:42.130 CREATE THE FOREST MOON FESTIVAL, 03:05:42.197 --> 03:05:43.499 NOW APPROACHING ITS FIFTH YEAR 03:05:43.565 --> 03:05:45.601 AS STAR WARS CELEBRATES ITS 03:05:45.667 --> 03:05:49.204 50TH ANNIVERSARY IN 2027, 03:05:49.271 --> 03:05:51.039 PEOPLE COME FROM ACROSS THE 03:05:51.106 --> 03:05:53.141 COUNTRY. ONE FATHER AND SON 03:05:53.208 --> 03:05:54.576 STAYED IN AN ENTIRE WEEK, 03:05:54.643 --> 03:05:55.978 PAYING FOR ACCOMMODATIONS, 03:05:56.044 --> 03:05:57.846 MEALS, TRANSPORTATION AND 03:05:57.913 --> 03:05:59.248 ACTIVITIES. BECAUSE A MOVIE 03:05:59.314 --> 03:06:03.185 FILMED HERE FOR DECADES AGO, 03:06:03.252 --> 03:06:05.187 EXPEDIA'S 2026 RESEARCH REPORTS 03:06:05.254 --> 03:06:07.189 THAT 81% OF GEN Z AND 03:06:07.256 --> 03:06:08.957 MILLENNIAL TRAVELERS PLAN 03:06:09.024 --> 03:06:10.359 GETAWAYS BASED ON PLACES 03:06:10.425 --> 03:06:13.295 THEY'VE SEEN ON SCREEN. WE SEE 03:06:13.362 --> 03:06:15.797 THAT BECOMING ACTUAL VISITS AND 03:06:15.864 --> 03:06:20.135 SPENDING. THERE'S ALSO. I'M A 03:06:20.202 --> 03:06:21.270 CRIER, TOO, SO WATCH OUT. 03:06:21.336 --> 03:06:23.005 THERE'S ALSO A QUALITY OF LIFE 03:06:23.071 --> 03:06:25.173 BENEFIT. WE CAN NOT PUT A 03:06:25.240 --> 03:06:30.245 DOLLAR AMOUNT ON DURING THE ONE. 03:06:30.312 --> 03:06:31.346 DURING THE ONE BATTLE AFTER 03:06:31.413 --> 03:06:32.414 ANOTHER, A RESIDENT APPROACHED 03:06:32.481 --> 03:06:34.216 ME AND I THOUGHT I WAS GETTING 03:06:34.283 --> 03:06:35.951 A PARKING COMPLAINT, BUT 03:06:36.018 --> 03:06:38.487 INSTEAD THEY THANKED ME BECAUSE 03:06:38.554 --> 03:06:39.588 THEY HAD BEEN STRUGGLING WITH 03:06:39.655 --> 03:06:41.456 WINTER DEPRESSION. AND WHEN 03:06:41.523 --> 03:06:42.858 THEY FOUND OUT LEONARDO 03:06:42.925 --> 03:06:44.226 DICAPRIO WAS AROUND THE CORNER, 03:06:44.293 --> 03:06:45.827 IT CHANGED, YOU KNOW, WINTER 03:06:45.894 --> 03:06:49.264 FOR THEM. AT THE FOREST MOON 03:06:49.331 --> 03:06:50.732 FESTIVAL, A CHILD ASKED, DID 03:06:50.799 --> 03:06:53.969 YOU BRING DISNEYLAND TO US? FOR 03:06:54.036 --> 03:06:56.138 FAMILIES WHO CANNOT AFFORD THAT 03:06:56.204 --> 03:06:57.239 TRIP, WE BROUGHT AN 03:06:57.306 --> 03:06:58.273 EXTRAORDINARY EXPERIENCE TO 03:06:58.340 --> 03:07:01.109 THEIR HOMETOWN. I'VE WATCHED 03:07:01.176 --> 03:07:02.578 OUR REGION STRUGGLE THROUGH 03:07:02.644 --> 03:07:05.147 CHANGES IN TIMBER AND CANNABIS. 03:07:05.213 --> 03:07:06.915 I SEE EMPTY STOREFRONTS AND 03:07:06.982 --> 03:07:09.451 BELOVED RESTAURANTS CLOSING AND 03:07:09.518 --> 03:07:11.186 KEEPING ECONOMIC OPPORTUNITY 03:07:11.253 --> 03:07:14.990 HERE MATTERS. PLEASE CONSIDER 03:07:15.057 --> 03:07:16.959 THE FULL REACH OF THE 03:07:17.025 --> 03:07:20.262 INVESTMENT, PRODUCTION SPENDING 03:07:20.329 --> 03:07:21.697 DOLLAR CIRCULATING LOCALLY, 03:07:21.763 --> 03:07:23.465 TOURISM CONTINUING FOR DECADES, 03:07:23.532 --> 03:07:26.702 AND QUALITY OF LIFE. 03:07:26.768 --> 03:07:28.170 CALIFORNIA'S IDENTITY AND ITS 03:07:28.236 --> 03:07:29.972 TOURISM APPEAL AS THE HOME OF 03:07:30.038 --> 03:07:31.807 FILMMAKING DEPENDS ON 03:07:31.873 --> 03:07:34.977 CONTINUING TO MAKE FILMS HERE. 03:07:35.043 --> 03:07:36.445 FROM WHERE I STAND, BOOTS ON 03:07:36.511 --> 03:07:38.647 THE GROUND, THIS INDUSTRY IS 03:07:38.714 --> 03:07:39.681 WORTH KEEPING AND WORTH 03:07:39.748 --> 03:07:44.152 FIGHTING FOR. THANK YOU. THANK 03:07:44.219 --> 03:07:48.323 YOU. CASSANDRA. OKAY, REALLY 03:07:48.390 --> 03:07:50.525 INTERESTING PANEL. LET ME START 03:07:50.592 --> 03:07:51.793 WITH ASSEMBLYMEMBER GARABEDIAN, 03:07:51.860 --> 03:07:54.062 WHO I KNOW HAD SOME QUESTIONS. 03:07:54.129 --> 03:07:55.163 THANK YOU, MISTER CHAIR. THANK 03:07:55.230 --> 03:07:57.299 YOU TO EACH OF YOU FOR THAT 03:07:57.366 --> 03:07:59.534 TESTIMONY. EXTREMELY HELPFUL. I 03:07:59.601 --> 03:08:01.970 THINK THAT EVERYTHING THAT 03:08:02.037 --> 03:08:03.805 EVERYONE SAID WAS RIGHT AND 03:08:03.872 --> 03:08:05.974 HELPFUL, BUT I'M STILL, I THINK, 03:08:06.041 --> 03:08:09.211 SEARCHING FOR A ANSWER TO THE 03:08:09.277 --> 03:08:11.346 SIMPLE QUESTION FOR THIS PANEL, 03:08:11.413 --> 03:08:13.181 WHICH IS DOES THE TAX CREDIT 03:08:13.248 --> 03:08:15.717 PAY FOR ITSELF AND MORE 03:08:15.784 --> 03:08:17.519 IMPORTANTLY, BRING IN MUCH MORE 03:08:17.586 --> 03:08:19.721 THAN WHAT WE PUT OUT. AND 03:08:19.788 --> 03:08:21.056 UNFORTUNATELY, I DON'T KNOW IF 03:08:21.123 --> 03:08:22.891 ANY OF THE FIVE OF YOU OR FOUR 03:08:22.958 --> 03:08:24.059 OF YOU ACTUALLY ANSWERED THAT 03:08:24.126 --> 03:08:26.161 QUESTION. SO I'M GOING TO GO TO 03:08:26.228 --> 03:08:30.098 ROWAN ISAACS, THE LAO ANALYST. 03:08:30.165 --> 03:08:32.501 DOES THE TAX CREDIT 4.0 AS 03:08:32.567 --> 03:08:35.737 WE'VE STRUCTURED IT, PAY FOR 03:08:35.804 --> 03:08:39.341 ITSELF OR BRING IN MORE. AND 03:08:39.408 --> 03:08:41.543 I'M GOING TO PUT THE VALUE OF 03:08:41.610 --> 03:08:43.712 THE INDUSTRY ASIDE. AND EACH OF 03:08:43.779 --> 03:08:44.913 THESE JOBS AND THE HUMAN LIVES, 03:08:44.980 --> 03:08:47.282 I THINK THAT WE CAN VERY MUCH 03:08:47.349 --> 03:08:48.717 JUSTIFY WHAT WE'RE DOING HERE 03:08:48.784 --> 03:08:51.553 BY ALL OF THOSE INTANGIBLE 03:08:51.620 --> 03:08:53.021 THINGS. BUT IF WE WANT TO JUST 03:08:53.088 --> 03:08:56.258 TAKE THAT OFF THE TABLE AND SAY, 03:08:56.324 --> 03:08:58.460 IS THIS DOLLAR SPENT BRINGING 03:08:58.527 --> 03:08:59.828 IN MORE THAN WE'RE SPENDING, 03:08:59.895 --> 03:09:02.064 WHAT'S THE ANSWER TO THAT? 03:09:02.130 --> 03:09:04.599 THANK YOU. ASSEMBLYMEMBER, THE 03:09:04.666 --> 03:09:06.568 BEST ANSWER I CAN GIVE IS THAT, 03:09:06.635 --> 03:09:08.537 WELL, SO FAR AS TO CLARIFY, 03:09:08.603 --> 03:09:10.405 PROGRAM 4.0 IS NEW ENOUGH THAT 03:09:10.472 --> 03:09:12.140 WE CAN'T REALLY OBSERVE THE 03:09:12.207 --> 03:09:13.175 DATA AND THE OUTCOMES FROM 03:09:13.241 --> 03:09:14.843 THOSE PROGRAMS. SO IT MIGHT BE 03:09:14.910 --> 03:09:17.112 A BIT PREMATURE. ON PROGRAM 4.0 03:09:17.179 --> 03:09:18.513 SPECIFICALLY, WE DO HAVE A 03:09:18.580 --> 03:09:20.048 REQUIRED REPORT THAT WILL BE 03:09:20.115 --> 03:09:22.184 PUBLISHING IN SPRING OF 2028 03:09:22.250 --> 03:09:23.385 THAT MIGHT BE ABLE TO SPEAK TO 03:09:23.452 --> 03:09:25.454 THAT MORE, BUT BASED ON THE 03:09:25.520 --> 03:09:26.455 AVAILABLE EVIDENCE WE DO HAVE, 03:09:26.521 --> 03:09:28.323 WE WOULD SAY THAT IT PROBABLY 03:09:28.390 --> 03:09:29.491 DOESN'T PAY FOR ITSELF IN TERMS 03:09:29.558 --> 03:09:31.560 OF NET FISCAL RETURN TO THE 03:09:31.626 --> 03:09:34.429 STATE, ALTHOUGH IT'S PROBABLY 03:09:34.496 --> 03:09:36.298 HAS A BETTER RETURN THAN MANY 03:09:36.364 --> 03:09:38.467 OTHER STATE FILM TAX CREDITS. 03:09:38.533 --> 03:09:39.868 AND, YOU KNOW, WE I SORT OF 03:09:39.935 --> 03:09:41.503 MENTIONED THAT SORT OF RANGE OF 03:09:41.570 --> 03:09:43.438 ESTIMATES FROM OTHER PLACES OF 03:09:43.505 --> 03:09:44.840 20 TO $0.50 ON THE DOLLAR. YOU 03:09:44.906 --> 03:09:46.641 KNOW, THOSE ARE ESTIMATES FROM 03:09:46.708 --> 03:09:47.743 PLACES LIKE GEORGIA AND NEW 03:09:47.809 --> 03:09:51.012 YORK. IT'S LIKELY IT'S PROBABLY 03:09:51.079 --> 03:09:52.414 REASONABLE TO THINK THAT 03:09:52.481 --> 03:09:53.482 CALIFORNIA'S STRUCTURE AND THE 03:09:53.548 --> 03:09:54.516 COMPETITIVENESS AND THE WAY 03:09:54.583 --> 03:09:56.184 IT'S SET UP IS MORE FAVORABLE 03:09:56.251 --> 03:09:57.719 FOR FISCAL RETURN. SO IT MIGHT 03:09:57.786 --> 03:09:59.621 BE BETTER THAN THOSE STATES, 03:09:59.688 --> 03:10:03.191 BUT WE THINK IT'S UNLIKELY AND 03:10:03.258 --> 03:10:06.828 RELIES ON, YOU KNOW, MAYBE 03:10:06.895 --> 03:10:07.763 OVERLY OPTIMISTIC ASSUMPTIONS 03:10:07.829 --> 03:10:09.030 TO ASSUME THAT IT BREAKS EVEN 03:10:09.097 --> 03:10:11.533 OR MAKES A NET FISCAL GAIN FOR 03:10:11.600 --> 03:10:14.035 THE STATE. GOT IT. AND IS THAT 03:10:14.102 --> 03:10:18.306 SO? AND I DID WRITE THAT DOWN, 03:10:18.373 --> 03:10:22.344 WHICH IT SEEMS LOW, BUT 20 TO 03:10:22.410 --> 03:10:24.846 EVEN $0.50 OF A RETURN. IS THAT 03:10:24.913 --> 03:10:26.648 BECAUSE OF THE ASSUMPTION THAT, 03:10:26.715 --> 03:10:28.150 TO YOUR POINT, A FOURTH OR 03:10:28.216 --> 03:10:29.518 MAYBE THREE QUARTERS OF THE 03:10:29.584 --> 03:10:32.354 PROJECTS YOU YOU ARE ESTIMATING 03:10:32.420 --> 03:10:33.822 WOULD BE HERE ANYWAY? IS THAT 03:10:33.889 --> 03:10:35.991 WHY IT'S SO LOW, OR ARE THERE 03:10:36.057 --> 03:10:37.092 OTHER THINGS IN YOUR 03:10:37.159 --> 03:10:39.961 ASSUMPTIONS? THAT IS ONE REASON. 03:10:40.028 --> 03:10:41.096 ACTUALLY, ONE OF THE THINGS 03:10:41.163 --> 03:10:42.497 THAT HELPS CALIFORNIA SOMEWHAT 03:10:42.564 --> 03:10:44.666 ALSO IS ITS CAP. YOU KNOW, IN 03:10:44.733 --> 03:10:46.635 SOME LIKE IN THE UK OR IN 03:10:46.701 --> 03:10:47.669 GEORGIA, IT IS UNCAPPED. AND 03:10:47.736 --> 03:10:48.870 WHAT THAT MEANS IS, YOU KNOW, 03:10:48.937 --> 03:10:50.038 WITH CALIFORNIA'S PROCESS, WE 03:10:50.105 --> 03:10:51.873 HAVE A COMPETITIVELY RANKED 03:10:51.940 --> 03:10:53.241 APPLICATION SYSTEM. AND SO THE 03:10:53.308 --> 03:10:54.376 PROJECTS THAT GET AWARDED A 03:10:54.442 --> 03:10:56.478 FILM TAX CREDIT, YOU KNOW, BY 03:10:56.545 --> 03:10:57.646 AT LEAST SOME METRIC, ARE 03:10:57.712 --> 03:10:59.414 GIVING US A BETTER BANG FOR OUR 03:10:59.481 --> 03:11:01.216 BUCK IN TERMS OF JOB CREATION 03:11:01.283 --> 03:11:04.119 AND SPENDING IN PLACES LIKE 03:11:04.186 --> 03:11:04.920 GEORGIA OR THE UNITED KINGDOM, 03:11:04.986 --> 03:11:06.922 FOR EXAMPLE. IT'S MORE OF AN 03:11:06.988 --> 03:11:07.756 ENTITLEMENT, ESSENTIALLY. IT'S 03:11:07.823 --> 03:11:09.457 NOT A COMPETITIVE SYSTEM TO THE 03:11:09.524 --> 03:11:11.293 SAME EXTENT. AND SO YOU MIGHT 03:11:11.359 --> 03:11:12.727 GET PRODUCTIONS THAT ARE 03:11:12.794 --> 03:11:14.529 AWARDED A TAX CREDIT THAT 03:11:14.596 --> 03:11:15.664 AREN'T AS COMPETITIVE IN TERMS 03:11:15.730 --> 03:11:16.798 OF THE AMOUNT OF ECONOMIC 03:11:16.865 --> 03:11:18.466 BENEFIT THEY BRING TO THAT 03:11:18.533 --> 03:11:19.034 JURISDICTION, BUT THEY STILL 03:11:19.100 --> 03:11:20.635 GET THE TAX CREDIT ANYWAY. SO 03:11:20.702 --> 03:11:22.504 ON AVERAGE, MAYBE THE, THE, THE 03:11:22.571 --> 03:11:23.772 BANG FOR THE BUCK OF 03:11:23.839 --> 03:11:24.973 PRODUCTIONS, THEY GET A TAX 03:11:25.040 --> 03:11:26.441 CREDIT IN CALIFORNIA, WE MIGHT 03:11:26.508 --> 03:11:28.109 EXPECT TO BE HIGHER. SO THAT'S 03:11:28.176 --> 03:11:30.345 WHY, YOU KNOW, THE 20 TO $0.50 03:11:30.412 --> 03:11:32.013 OF SORT OF THE SUMMARY 03:11:32.080 --> 03:11:33.248 SUMMARIZING OF FISCAL ESTIMATES 03:11:33.315 --> 03:11:34.416 FROM OTHER STATES. WE THINK 03:11:34.482 --> 03:11:36.318 THAT WE WOULD BE YOU KNOW, THAT 03:11:36.384 --> 03:11:37.552 WOULD BE A LOWER BOUND FOR WHAT 03:11:37.619 --> 03:11:39.287 WE WOULD THINK FOR CALIFORNIA. 03:11:39.354 --> 03:11:40.422 BUT, YOU KNOW, SOME OF THE 03:11:40.488 --> 03:11:41.523 OTHER ESTIMATES THAT ARE, YOU 03:11:41.590 --> 03:11:43.258 KNOW, MAYBE DESCRIBE THE STATE 03:11:43.325 --> 03:11:44.726 IS GETTING A NET FISCAL RETURN 03:11:44.793 --> 03:11:46.828 FROM THE FILM TAX CREDIT, LIKE 03:11:46.895 --> 03:11:49.764 WE THINK ARE RELIANT ON OVERLY 03:11:49.831 --> 03:11:50.532 OPTIMISTIC ASSUMPTIONS. AND SO 03:11:50.599 --> 03:11:52.968 WE THINK IT'S, IT'S, YOU KNOW, 03:11:53.034 --> 03:11:54.736 WHILE I CAN'T TELL YOU FOR SURE, 03:11:54.803 --> 03:11:55.937 AND THAT'S AN UNSATISFACTORY 03:11:56.004 --> 03:11:57.272 ANSWER, YOU KNOW, SOMEWHERE IN 03:11:57.339 --> 03:11:59.107 BETWEEN THOSE TWO IS MAYBE A 03:11:59.174 --> 03:12:00.976 REASONABLE STARTING POINT. GOT 03:12:01.042 --> 03:12:02.444 IT. MISTER CHAIR, DO YOU MIND 03:12:02.510 --> 03:12:04.012 IF STEPHEN AND MATT ANSWER THAT 03:12:04.079 --> 03:12:05.113 QUESTION AS WELL? THANK YOU. 03:12:05.180 --> 03:12:09.584 YEAH. APPRECIATE THAT. SO BASED 03:12:09.651 --> 03:12:11.419 ON THE 2.0 ANALYSIS, WHAT WE 03:12:11.486 --> 03:12:12.821 FOUND IS THAT FOR EVERY DOLLAR 03:12:12.888 --> 03:12:15.056 THAT THE TAX CREDIT PUT IN, YOU 03:12:15.123 --> 03:12:18.159 GET $1.07 BACK FOR STATE AND 03:12:18.226 --> 03:12:20.428 LOCAL. SO WHEN YOU LOOK AT IT, 03:12:20.495 --> 03:12:22.330 IS IT DIRECTLY TO THE STATE OF 03:12:22.397 --> 03:12:23.698 CALIFORNIA? BUT IF YOU ALSO 03:12:23.765 --> 03:12:24.733 INCLUDE LOCAL BECAUSE THEN YOU 03:12:24.799 --> 03:12:26.568 DON'T HAVE TO ACTUALLY ALLOCATE 03:12:26.635 --> 03:12:27.936 THE FUNDING FROM THE STATE FOR 03:12:28.003 --> 03:12:29.371 OTHER RESOURCES TO THE STATE. 03:12:29.437 --> 03:12:31.539 IT'S A COMBINED. SO FROM THAT 03:12:31.606 --> 03:12:32.974 PERSPECTIVE, IN OUR OPINION, 03:12:33.041 --> 03:12:36.244 YES, YOU DO MAKE THE MONEY BACK. 03:12:36.311 --> 03:12:38.380 REGARDING WHETHER THE IF YOU 03:12:38.446 --> 03:12:39.648 DON'T GET THE TAX CREDIT, 03:12:39.714 --> 03:12:40.615 WHETHER THEY'RE GOING TO 03:12:40.682 --> 03:12:41.983 PRODUCE HERE ANYWAYS, POSSIBLY. 03:12:42.050 --> 03:12:44.486 BUT THE DATA ALSO SHOW THAT FOR 03:12:44.552 --> 03:12:45.654 HALF OF THE APPLICANTS THAT 03:12:45.720 --> 03:12:46.988 DIDN'T GET THE CREDIT, THEY 03:12:47.055 --> 03:12:49.157 ACTUALLY FILMED OUTSIDE OF THE 03:12:49.224 --> 03:12:51.393 STATE OF CALIFORNIA. AND IN 03:12:51.459 --> 03:12:55.330 THOSE PRODUCTIONS, ABOUT 78 03:12:55.397 --> 03:12:56.831 PRODUCTIONS ALTOGETHER, THEY 03:12:56.898 --> 03:12:59.301 SPENT ABOUT $3.9 BILLION TO 03:12:59.367 --> 03:13:00.702 EXPAND OUTSIDE OF THE STATE OF 03:13:00.769 --> 03:13:01.937 CALIFORNIA. THAT IF YOU LOOK AT 03:13:02.003 --> 03:13:03.605 THE SAME CALCULATION THAT WE 03:13:03.672 --> 03:13:05.440 USE, THAT'S ABOUT A $7.7 03:13:05.507 --> 03:13:06.841 BILLION OUTPUT FOR THE ENTIRE 03:13:06.908 --> 03:13:08.643 REGION, WHICH WE CAN RESULT IN 03:13:08.710 --> 03:13:11.546 ABOUT $354 MILLION IN 03:13:11.613 --> 03:13:13.014 ADDITIONAL STATE AND LOCAL THAT 03:13:13.081 --> 03:13:14.749 WE DIDN'T GET HERE BECAUSE OF 03:13:14.816 --> 03:13:18.153 THAT. SO IS IT A DIRECT ANSWER? 03:13:18.219 --> 03:13:20.155 IT'S HARD TO BECAUSE IT'S THE 03:13:20.221 --> 03:13:21.222 CALCULATION IS NOT THERE. BUT 03:13:21.289 --> 03:13:23.158 WHAT WE DO KNOW IS THAT FOR 03:13:23.224 --> 03:13:24.259 EVERY DOLLAR YOU PUT IN, YOU 03:13:24.326 --> 03:13:27.796 GET $1.07 BACK FOR THE STATE 03:13:27.862 --> 03:13:33.468 AND LOCAL. MAT COULD GET A MIC 03:13:33.535 --> 03:13:36.671 TO MATT HORTON. I THINK A BIT 03:13:36.738 --> 03:13:39.274 MORE ESOTERIC POINT IS AND 03:13:39.341 --> 03:13:40.608 ROHAN CAN CORRECT ME IF I'M 03:13:40.675 --> 03:13:42.444 WRONG, I ONLY PLAY AN ECONOMIST 03:13:42.510 --> 03:13:46.414 ON TV. I THINK OUR THE, THE 03:13:46.481 --> 03:13:47.782 DISCONNECT HERE ON THE VALUE OF 03:13:47.849 --> 03:13:50.051 THE CREDIT IS IS BREAKS DOWN AT 03:13:50.118 --> 03:13:51.252 THE SCORING. WHAT I WAS TRYING 03:13:51.319 --> 03:13:53.021 TO SAY ABOUT THE DIRECT 03:13:53.088 --> 03:13:55.457 INDIRECT AND INDUCED. SO LIKE 03:13:55.523 --> 03:13:59.427 THE JOB, LIKE OUR STATIC BUDGET 03:13:59.494 --> 03:14:00.996 SCORING IN TERMS OF THE HIT TO 03:14:01.062 --> 03:14:02.597 THE GENERAL FUND DOESN'T 03:14:02.664 --> 03:14:05.500 NECESSARILY CAPTURE THAT LOCAL 03:14:05.567 --> 03:14:07.335 UPTAKE AND THE VALUE THAT'S 03:14:07.402 --> 03:14:08.770 CREATED FROM THE ECONOMIC 03:14:08.837 --> 03:14:10.505 ACTIVITY. SO AND I MEAN, AND 03:14:10.572 --> 03:14:11.673 THAT'S NOT A THAT'S NOT A 03:14:11.740 --> 03:14:13.441 NEGATIVE THING. I MEAN, IT'S 03:14:13.508 --> 03:14:15.543 DESIGNED TO, TO, TO TELL YOU 03:14:15.610 --> 03:14:17.012 GUYS, YOU KNOW, WHAT THE 03:14:17.078 --> 03:14:18.847 STATE'S POSITION IS IN TERMS OF 03:14:18.913 --> 03:14:20.615 THE REVENUES AND FUNDS 03:14:20.682 --> 03:14:22.050 AVAILABLE, BUT IT'S NOT 03:14:22.117 --> 03:14:24.185 DESIGNED TO. AND THE CREDIT IS 03:14:24.252 --> 03:14:27.188 NOT DESIGNED, ESPECIALLY IN ITS 03:14:27.255 --> 03:14:28.890 LATER YEARS TO TO TELL YOU WHAT 03:14:28.957 --> 03:14:30.358 THE ECONOMIC ACTIVITY IS 03:14:30.425 --> 03:14:32.160 ACTUALLY DOING. SO THERE'S, 03:14:32.227 --> 03:14:34.295 THERE'S A BIT OF A, YOU KNOW, A 03:14:34.362 --> 03:14:35.797 DISCONNECT FROM HOW WE DID MORE 03:14:35.864 --> 03:14:37.165 DYNAMIC SCORING IN THE 90S 03:14:37.232 --> 03:14:41.169 VERSUS HOW WE DO SCORING TODAY. 03:14:41.236 --> 03:14:42.871 YEP. NO. HELPFUL. ALL THREE OF 03:14:42.937 --> 03:14:43.972 THOSE ANSWERS ARE HELPFUL FOR 03:14:44.039 --> 03:14:45.006 DIFFERENT REASONS. AND I JUST 03:14:45.073 --> 03:14:47.675 THINK IT IT BRINGS TO LIGHT 03:14:47.742 --> 03:14:50.145 THAT THE, THE WAY IN WHICH 03:14:50.211 --> 03:14:51.780 WE'RE LOOKING AT THE RETURN, I 03:14:51.846 --> 03:14:52.981 THINK NEEDS TO BE ESPECIALLY 03:14:53.048 --> 03:14:54.816 FOR 4.0, REALLY WHAT WE'RE 03:14:54.883 --> 03:14:55.917 FOCUSED ON. BECAUSE WHEN WE GO 03:14:55.984 --> 03:14:57.852 BACK TO SACRAMENTO AND ALL OF 03:14:57.919 --> 03:14:58.987 US CAN ATTEST TO THIS, IT 03:14:59.054 --> 03:15:00.155 BECOMES A REGIONAL FIGHT. IT 03:15:00.221 --> 03:15:03.124 BECOMES A. AND IT SHOULDN'T BE 03:15:03.191 --> 03:15:04.225 BECAUSE OF THE TESTIMONY THAT 03:15:04.292 --> 03:15:05.994 WE JUST HEARD. IT ALSO BECOMES 03:15:06.061 --> 03:15:08.496 A BEST USE OF A DOLLAR FIGHT. 03:15:08.563 --> 03:15:11.099 AND I THINK THAT ANALYSIS AND 03:15:11.166 --> 03:15:12.834 ALL THE ANALYSIS THAT YOU ARE 03:15:12.901 --> 03:15:14.969 ALL DOING REALLY, HOPEFULLY AT 03:15:15.036 --> 03:15:16.771 SOME POINT CAN BE MORE 03:15:16.838 --> 03:15:18.273 STANDARDIZED AND MORE OBJECTIVE 03:15:18.339 --> 03:15:20.008 SO THAT WE CAN JUST MAKE THE 03:15:20.075 --> 03:15:22.544 CASE WITHOUT HAVING TO TUG ON 03:15:22.610 --> 03:15:24.012 THE HUMAN HEARTSTRINGS. THAT'S 03:15:24.079 --> 03:15:26.281 SUPER IMPORTANT. BUT WHEN WE'RE 03:15:26.347 --> 03:15:27.582 GOING INTO TOUGH BUDGET TIMES, 03:15:27.649 --> 03:15:29.184 I JUST THINK THAT THE NUMBERS 03:15:29.250 --> 03:15:30.218 ARE REALLY GOING TO CONVINCE 03:15:30.285 --> 03:15:31.219 OUR COLLEAGUES THAT DON'T 03:15:31.286 --> 03:15:33.021 NECESSARILY LIVE IN LA. AND SO 03:15:33.088 --> 03:15:34.489 I APPRECIATE IT, MR. CHAIR. AND 03:15:34.556 --> 03:15:36.157 I THINK WHAT WE JUST TALKED 03:15:36.224 --> 03:15:37.325 ABOUT THERE IS REALLY IMPORTANT 03:15:37.392 --> 03:15:38.526 GOING FORWARD. THANK YOU. MAY I 03:15:38.593 --> 03:15:40.161 SAY SOMETHING ABOUT. YES, OF 03:15:40.228 --> 03:15:41.429 COURSE. YOU HAD ASKED ABOUT 03:15:41.496 --> 03:15:42.397 WHETHER PRODUCTIONS WOULD HAVE 03:15:42.464 --> 03:15:43.431 STAYED ANYWAYS. IF THEY YOU 03:15:43.498 --> 03:15:45.266 KNOW, THEY GOT THE TAX CREDIT, 03:15:45.333 --> 03:15:46.434 ARE THEY THE ONES THAT ARE 03:15:46.501 --> 03:15:48.269 GOING TO STAY ANYWAYS UP NORTH 03:15:48.336 --> 03:15:49.437 WE GET PRODUCTIONS ALL THE TIME 03:15:49.504 --> 03:15:51.372 THAT WANT TO COME AND THEY COME 03:15:51.439 --> 03:15:52.540 SCOUT, LOOK, THEN FIND OUT THEY 03:15:52.607 --> 03:15:54.342 DON'T GET THE TAX CREDIT AND 03:15:54.409 --> 03:15:55.944 HAVE LEFT. SO IT STATISTICALLY, 03:15:56.010 --> 03:15:57.312 I DON'T THINK IT COULD BE 03:15:57.378 --> 03:15:58.379 POSSIBLE THAT THE ONES THAT 03:15:58.446 --> 03:16:00.315 HAPPEN TO GET IT ARE THE ONES 03:16:00.381 --> 03:16:01.516 THAT WERE GOING TO STAY ANYWAY, 03:16:01.583 --> 03:16:03.284 AND ONLY THE ONES THAT DON'T 03:16:03.351 --> 03:16:04.552 GET IT LEAVE. YOU KNOW, I THINK 03:16:04.619 --> 03:16:06.387 IT'S THEY STAY BECAUSE THEY GOT 03:16:06.454 --> 03:16:08.289 IT. THEY GOT THE TAX CREDIT OR 03:16:08.356 --> 03:16:09.357 THERE'S SOMEONE LIKE PTA AND 03:16:09.424 --> 03:16:10.592 HAS THAT POWER. YEAH. THANK YOU. 03:16:10.658 --> 03:16:12.427 ASSEMBLY MEMBER I HAVE A COUPLE 03:16:12.494 --> 03:16:15.163 QUESTIONS. DID YOU HAVE SOME DO 03:16:15.230 --> 03:16:17.165 YOU WANT TO DO YOU WANT TO GO 03:16:17.232 --> 03:16:19.134 NEXT? OKAY, LET ME GO. SO I 03:16:19.200 --> 03:16:21.236 HAVE A COUPLE QUESTIONS. SO THE 03:16:21.302 --> 03:16:26.241 FIRST IS. ARE WE SCORING THESE 03:16:26.307 --> 03:16:28.810 KINDS OF TAX CREDIT PROGRAMS, 03:16:28.877 --> 03:16:30.678 BOTH THE FILM TAX CREDIT, MAYBE 03:16:30.745 --> 03:16:32.747 THE R&D PROGRAM AS WELL. ARE WE 03:16:32.814 --> 03:16:34.549 SCORING THEM DIFFERENTLY THAN 03:16:34.616 --> 03:16:36.184 THE WAY OTHER STATES SCORE? DO 03:16:36.251 --> 03:16:38.486 OTHER STATES USE SORT OF MORE 03:16:38.553 --> 03:16:39.888 DYNAMIC SCORING OF THESE 03:16:39.954 --> 03:16:42.857 PROGRAMS? I THINK I HAD A 03:16:42.924 --> 03:16:43.892 CONVERSATION WITH STEVEN 03:16:43.958 --> 03:16:46.461 EARLIER TODAY. AND, YOU KNOW, 03:16:46.528 --> 03:16:48.196 WE'VE GOT A BIT OF A DISCONNECT 03:16:48.263 --> 03:16:49.998 IN TERMS OF, YOU KNOW, THE 03:16:50.064 --> 03:16:51.966 AMOUNT OF, YOU KNOW, WE CLEARLY 03:16:52.033 --> 03:16:53.601 ARE SCORING THE COST SIDE. AND 03:16:53.668 --> 03:16:54.936 THEN I THINK THERE'S FOR ME, 03:16:55.003 --> 03:16:56.504 THERE'S A QUESTION OF HOW MUCH 03:16:56.571 --> 03:16:58.940 ARE WE SCORING AND HOW MUCH IS 03:16:59.007 --> 03:17:00.441 IT APPROPRIATE FOR US TO SCORE 03:17:00.508 --> 03:17:02.210 THE DOLLARS THAT SORT OF COME 03:17:02.277 --> 03:17:06.247 BACK IN FROM, YOU KNOW, THE 03:17:06.314 --> 03:17:08.716 EMPLOYEES THAT ARE EMPLOYED, 03:17:08.783 --> 03:17:11.252 THE BUSINESSES THAT ARE PAYING 03:17:11.319 --> 03:17:13.121 TAXES, AND THEN THERE'S SORT OF 03:17:13.188 --> 03:17:15.190 MORE INDUCED COSTS BEYOND THAT, 03:17:15.256 --> 03:17:17.725 WHICH ARE, YOU KNOW, THE 03:17:17.792 --> 03:17:18.860 IMPACTS THAT WE HAVE TO OUR 03:17:18.927 --> 03:17:20.328 TOURISM INDUSTRY AND A WHOLE 03:17:20.395 --> 03:17:21.996 HOST OF OTHER THINGS THAT ARE 03:17:22.063 --> 03:17:23.198 SORT OF MULTIPLIERS OF THAT. SO 03:17:23.264 --> 03:17:25.667 THE QUESTION I SORT OF HAVE IS, 03:17:25.733 --> 03:17:27.035 YOU KNOW, TO ME, IT'S SORT OF 03:17:27.101 --> 03:17:29.237 WE'VE GOT MOST STATES HAVE 03:17:29.304 --> 03:17:31.406 UNCAPPED PROGRAMS, AND THEY'RE 03:17:31.472 --> 03:17:34.342 SMALLER STATES THAN CALIFORNIA. 03:17:34.409 --> 03:17:36.511 SO WHY IS IT THAT THEY FEEL THE 03:17:36.578 --> 03:17:37.645 COMFORT OF DOING THAT? ARE THEY 03:17:37.712 --> 03:17:39.547 ARE THEY DO THEY HAVE DYNAMIC 03:17:39.614 --> 03:17:40.582 SCORING WHEN THEY'RE DOING WHEN 03:17:40.648 --> 03:17:41.482 THEY'RE EVALUATING THEIR 03:17:41.549 --> 03:17:46.221 BUDGETS? OR ARE THEY JUST 03:17:46.287 --> 03:17:47.589 MAKING A BIGGER INVESTMENT, I 03:17:47.655 --> 03:17:49.057 GUESS, IN TERMS OF WHAT THEY'RE 03:17:49.123 --> 03:17:51.226 DOING AND JUST KNOWING THAT THE 03:17:51.292 --> 03:17:53.361 ECONOMIC AND THE OTHER BENEFITS 03:17:53.428 --> 03:17:55.530 ARE HARDER TO QUANTIFY AND 03:17:55.597 --> 03:17:56.631 THEY'RE MAKING THOSE 03:17:56.698 --> 03:17:57.532 ASSUMPTIONS. SO MAYBE I'LL 03:17:57.599 --> 03:17:59.367 START WITH MATT AND LOVE TO 03:17:59.434 --> 03:18:00.902 HAVE ROWAN AND OTHERS 03:18:00.969 --> 03:18:03.404 PERSPECTIVES. I THINK THAT'S A 03:18:03.471 --> 03:18:04.906 GREAT QUESTION. AND WHICH IS MY 03:18:04.973 --> 03:18:05.940 ROUNDABOUT WAY OF SAYING I'M 03:18:06.007 --> 03:18:08.142 NOT QUITE SURE IN TERMS OF HOW 03:18:08.209 --> 03:18:09.611 LIKE NEW YORK, I DON'T KNOW HOW 03:18:09.677 --> 03:18:12.046 NEW YORK IS, HAS HAS JUSTIFIED 03:18:12.113 --> 03:18:14.616 THEIR UNCAPPED AMOUNT. I KNOW 03:18:14.682 --> 03:18:16.317 THAT THERE'S OTHER TRICKS IN 03:18:16.384 --> 03:18:17.952 THAT MUNICIPAL FINANCE TOOLBOX 03:18:18.019 --> 03:18:19.354 THAT OTHER STATES USE. I THINK 03:18:19.420 --> 03:18:20.955 THERE'S AN EQUITY FUND THAT 03:18:21.022 --> 03:18:22.624 THEY USE IN IN THE UK, WHERE 03:18:22.690 --> 03:18:23.958 THEY'RE PUTTING PUBLIC DOLLARS 03:18:24.025 --> 03:18:25.727 INTO PRODUCTION THAT HAS A 03:18:25.793 --> 03:18:27.595 PUBLIC RETURN THAT KIND OF 03:18:27.662 --> 03:18:29.430 RECYCLES AND REVOLVES THE FUND. 03:18:29.497 --> 03:18:30.498 SO I MEAN, THERE'S, THERE'S 03:18:30.565 --> 03:18:32.233 DIFFERENT METHODS AND, AND 03:18:32.300 --> 03:18:33.668 STRATEGIES THAT I THINK IN THAT, 03:18:33.735 --> 03:18:35.136 IN THAT TOOLBOX THAT ARE 03:18:35.203 --> 03:18:36.537 DEPLOYED. BUT I WOULD HAVE TO 03:18:36.604 --> 03:18:38.373 DO A MUCH BROADER COMPARATIVE 03:18:38.439 --> 03:18:40.808 ANALYSIS ON, ON, YOU KNOW, ON, 03:18:40.875 --> 03:18:43.077 ON THOSE FINANCES TO SPEAK MORE 03:18:43.144 --> 03:18:44.846 AUTHORITATIVELY ON IT. YEAH. I 03:18:44.912 --> 03:18:49.851 MEAN, CAN YOU AND RON GO AHEAD? 03:18:49.917 --> 03:18:51.352 SO YEAH, OBVIOUSLY, WE CAN'T 03:18:51.419 --> 03:18:52.253 REALLY SPEAK FOR THE DEPARTMENT 03:18:52.320 --> 03:18:53.288 OF FINANCE THEMSELVES. I MEAN, 03:18:53.354 --> 03:18:55.356 THEY, YEAH, THEY TEND TO USE 03:18:55.423 --> 03:18:57.425 MORE STATIC SCORING AND A LOT 03:18:57.492 --> 03:18:58.526 OF LIKE TAX EXPENDITURE REPORT 03:18:58.593 --> 03:19:01.062 AND OTHER PRODUCTS THEY PUT OUT 03:19:01.129 --> 03:19:02.130 INFORMALLY. I DON'T, I DON'T 03:19:02.196 --> 03:19:03.364 WANT TO SPEAK FOR OTHER PLACES. 03:19:03.431 --> 03:19:05.033 BUT, YOU KNOW, I THINK 03:19:05.099 --> 03:19:05.466 INFORMALLY, I THINK 03:19:05.533 --> 03:19:06.601 CONGRESSIONAL BUDGET OFFICE, 03:19:06.668 --> 03:19:08.269 YOU KNOW, IN DC, YOU KNOW, DOES 03:19:08.336 --> 03:19:10.171 SOME DYNAMIC SCORING. I THINK 03:19:10.238 --> 03:19:11.706 I'VE SEEN, YOU KNOW, THERE ARE 03:19:11.773 --> 03:19:12.840 PROBABLY SOME EXAMPLES OF DOING 03:19:12.907 --> 03:19:13.875 DYNAMIC SCORING, BUT OBVIOUSLY 03:19:13.941 --> 03:19:16.344 IT'S, IT'S, YOU'RE, YOU'RE 03:19:16.411 --> 03:19:17.812 HAVING TO MAKE A LOT OF 03:19:17.879 --> 03:19:18.813 ASSUMPTIONS AND YOU'RE HAVING 03:19:18.880 --> 03:19:19.947 TO CREATE MODELS THAT COULD BE 03:19:20.014 --> 03:19:21.816 QUITE WRONG. AND SO IT JUST 03:19:21.883 --> 03:19:22.817 INCREASES THE, THE, THE 03:19:22.884 --> 03:19:24.152 UNCERTAINTY AND THE RISK AROUND 03:19:24.218 --> 03:19:25.787 YOUR FORECAST BEING INACCURATE, 03:19:25.853 --> 03:19:28.122 I GUESS. IS THERE A WAY, THOUGH, 03:19:28.189 --> 03:19:29.223 OF DOING DYNAMIC SCORING WHERE 03:19:29.290 --> 03:19:31.025 YOU ACTUALLY HAVE ENOUGH OF A 03:19:31.092 --> 03:19:32.360 LEVEL OF CONSERVATISM THAT YOU 03:19:32.427 --> 03:19:33.294 KNOW, THAT YOU'RE PROTECTING 03:19:33.361 --> 03:19:35.229 THE STATE BUDGET, BUT ACTUALLY 03:19:35.296 --> 03:19:36.397 REFLECTING MORE THE VALUE OF 03:19:36.464 --> 03:19:38.299 THESE PROGRAMS TO OUR ECONOMY 03:19:38.366 --> 03:19:39.667 AND OUR WORKERS AND THE TAXES 03:19:39.734 --> 03:19:42.470 THAT RESULT IN THAT. I MEAN, A 03:19:42.537 --> 03:19:43.938 LOT OF ANALYSIS MIGHT COME UP 03:19:44.005 --> 03:19:45.773 WITH A LOWER AND UPPER AND AN 03:19:45.840 --> 03:19:46.741 UPPER BOUND, YOU KNOW, 03:19:46.808 --> 03:19:47.842 REASONABLE RANGE OF WHAT THE 03:19:47.909 --> 03:19:49.677 NUMBER COULD BE. AND IT COULD 03:19:49.744 --> 03:19:51.112 BE. ONE OPTION IS TO USE THE 03:19:51.179 --> 03:19:52.980 LOWER BOUND, LIKE USE THE MORE 03:19:53.047 --> 03:19:54.082 CONSERVATIVE ESTIMATE. I MEAN, 03:19:54.148 --> 03:19:55.783 THAT MIGHT LEAD TO BEING OVERLY 03:19:55.850 --> 03:19:57.151 OPTIMISTIC IN SOME CASES, WHICH 03:19:57.218 --> 03:19:58.319 HAS ITS OWN COST, RIGHT. YOU 03:19:58.386 --> 03:19:59.754 KNOW, NOT NOT FUNDING PROGRAMS 03:19:59.821 --> 03:20:00.455 BECAUSE YOU'RE BEING TOO 03:20:00.521 --> 03:20:01.889 CONSERVATIVE ALSO HAS AN 03:20:01.956 --> 03:20:02.957 OPPORTUNITY COST ASSOCIATED 03:20:03.024 --> 03:20:04.425 WITH IT. BUT THAT'S SOMETHING 03:20:04.492 --> 03:20:05.493 THAT COULD BE DONE 03:20:05.560 --> 03:20:07.295 THEORETICALLY. YEAH. YEAH. I 03:20:07.362 --> 03:20:08.629 MEAN, WITH MANY OF THE 03:20:08.696 --> 03:20:09.664 DECISIONS WE'RE MAKING AROUND 03:20:09.731 --> 03:20:10.898 THE BUDGET, WE DON'T HAVE 03:20:10.965 --> 03:20:12.734 CERTAINTY IN TERMS OF WHAT IT'S 03:20:12.800 --> 03:20:14.235 WHAT IT'S GOING TO COST US, 03:20:14.302 --> 03:20:15.937 RIGHT. I MEAN, WE HAVE SOME 03:20:16.003 --> 03:20:17.004 AMOUNT. I MEAN, WHEN WE'RE 03:20:17.071 --> 03:20:20.641 MAKING DECISIONS AROUND HEALTH 03:20:20.708 --> 03:20:22.410 POLICY, WE'RE MAKING 03:20:22.477 --> 03:20:23.411 PROJECTIONS THAT ARE UNCERTAIN 03:20:23.478 --> 03:20:24.645 TO A CERTAIN EXTENT. AND WE USE 03:20:24.712 --> 03:20:28.182 OUR BEST, OUR BEST DATA AND, 03:20:28.249 --> 03:20:30.485 AND JUDGMENT TO TRY TO JUDGE 03:20:30.551 --> 03:20:31.552 WHAT THAT'S GOING TO, THE 03:20:31.619 --> 03:20:33.388 IMPACT IT'S GOING TO HAVE ON 03:20:33.454 --> 03:20:34.555 THE BUDGET. IT JUST SORT OF 03:20:34.622 --> 03:20:36.491 SEEMS TO ME THAT WE COULD MOVE 03:20:36.557 --> 03:20:38.292 TOWARDS DYNAMIC SCORING AND DO 03:20:38.359 --> 03:20:39.927 IT IN A WAY THAT'S CONSERVATIVE 03:20:39.994 --> 03:20:41.863 ENOUGH THAT WE KNOW THAT WE'RE 03:20:41.929 --> 03:20:42.897 PROTECTING THE STATE'S BUDGET, 03:20:42.964 --> 03:20:45.433 BUT AT THE SAME TIME, SCORING 03:20:45.500 --> 03:20:46.901 THESE KINDS OF ECONOMIC 03:20:46.968 --> 03:20:48.736 DEVELOPMENT PROGRAMS IN A WAY 03:20:48.803 --> 03:20:51.205 THAT MORE FULLY REPRESENTS THE 03:20:51.272 --> 03:20:52.673 IMPACT, THE POSITIVE IMPACTS 03:20:52.740 --> 03:20:54.142 THAT IT'S HAVING TO THE STATE 03:20:54.208 --> 03:20:56.277 BUDGET. I DON'T KNOW IF YOU 03:20:56.344 --> 03:20:57.378 WANT TO COMMENT OR MATT OR 03:20:57.445 --> 03:20:59.180 ANYONE ELSE. YEAH, THERE'S A 03:20:59.247 --> 03:21:00.314 BIT OF DISPARITY THERE TOO. I 03:21:00.381 --> 03:21:02.183 THINK, TO YOUR POINT, IN TERMS 03:21:02.250 --> 03:21:03.451 OF STATE'S REVENUE VERSUS LOCAL 03:21:03.518 --> 03:21:06.020 AND COUNTY. SO I MEAN, THAT 03:21:06.087 --> 03:21:07.588 ALSO SEEMS LIKE THE, YOU KNOW, 03:21:07.655 --> 03:21:09.190 THE ROLLER COASTER OF OF STATE 03:21:09.257 --> 03:21:10.358 REVENUES. YOU KNOW, WHEN TIMES 03:21:10.425 --> 03:21:11.726 ARE GOOD, TIMES ARE GOOD AND 03:21:11.793 --> 03:21:14.262 WHEN TIMES ARE BAD. SO IT'S 03:21:14.328 --> 03:21:15.463 THAT GETTING OFF OF THAT ROLLER 03:21:15.530 --> 03:21:16.764 COASTER, I THINK IS MUCH 03:21:16.831 --> 03:21:20.001 BROADER. YEAH. YOU KNOW, POLICY 03:21:20.067 --> 03:21:21.803 DISCUSSION. THANK YOU. ANYONE 03:21:21.869 --> 03:21:25.072 ELSE WANT TO COMMENT TO STEVEN? 03:21:25.139 --> 03:21:27.175 OR CASSANDRA IN TERMS OF THE 03:21:27.241 --> 03:21:29.010 RANGE THAT YOU MENTIONED, 03:21:29.076 --> 03:21:30.978 SHANNON AND TEAM ACTUALLY WAS 03:21:31.045 --> 03:21:32.980 WE WERE HIRED BY LA 28 TO DO AN 03:21:33.047 --> 03:21:35.116 ECONOMIC IMPACT REPORT ON THE 03:21:35.183 --> 03:21:36.918 IMPACT OF THE OLYMPIC GAMES. 03:21:36.984 --> 03:21:38.052 AND WHAT THE TEAM DID IS 03:21:38.119 --> 03:21:39.954 ACTUALLY DID A HIGH RANGE AND 03:21:40.021 --> 03:21:41.122 LOW RANGE USING TWO DIFFERENT 03:21:41.189 --> 03:21:42.089 METHODS SO THAT YOU CAN 03:21:42.156 --> 03:21:43.958 ACTUALLY SEE WHAT THE SCOPE. SO 03:21:44.025 --> 03:21:44.959 FROM THAT ECONOMIC IMPACT 03:21:45.026 --> 03:21:45.960 REPORT, FOR EXAMPLE, WE 03:21:46.027 --> 03:21:46.928 REPORTED THAT THE TOTAL 03:21:46.994 --> 03:21:48.129 ECONOMIC IMPACT FOR THE OLYMPIC 03:21:48.196 --> 03:21:49.897 GAMES COULD BE ON THE VERY LOW 03:21:49.964 --> 03:21:52.366 END, $20.5 BILLION AND THE 03:21:52.433 --> 03:21:54.535 UPPER RANGE 40.6 BILLION. YES, 03:21:54.602 --> 03:21:56.037 IT'S A RANGE, BUT AT LEAST YOU 03:21:56.103 --> 03:21:57.205 KNOW WHAT THE CALCULATION IS 03:21:57.271 --> 03:22:00.041 GOING IN. SO TO TO RON'S POINT, 03:22:00.107 --> 03:22:01.542 PERHAPS THAT MIGHT BE GIVING 03:22:01.609 --> 03:22:02.877 THAT PARAMETER. THAT WOULD GIVE 03:22:02.944 --> 03:22:04.612 THE STATE A BIT MORE COMFORT 03:22:04.679 --> 03:22:06.514 KNOWING WHAT THE THE PARAMETERS 03:22:06.581 --> 03:22:10.384 ARE. I JUST WANT TO MAKE A 03:22:10.451 --> 03:22:12.220 COMMENT ABOUT THE DIFFERENCE 03:22:12.286 --> 03:22:14.422 THAT EXISTS TO WITH THE 03:22:14.489 --> 03:22:15.923 ALLOCATION OF THE CREDIT VERSUS 03:22:15.990 --> 03:22:18.659 THE REDEMPTION. SO IF YOU'RE 03:22:18.726 --> 03:22:20.828 KIND OF WONDERING WHAT THE 03:22:20.895 --> 03:22:22.663 OTHER JURISDICTIONS THAT HAVE 03:22:22.730 --> 03:22:25.533 UNCAPPED, IT'S BECAUSE WHEN 03:22:25.600 --> 03:22:27.034 THEY'RE AWARDED THE CREDIT, 03:22:27.101 --> 03:22:28.536 IT'S NOT REDEEMED UNTIL YEARS 03:22:28.603 --> 03:22:29.837 LATER. AND WE HAVE THAT SAME 03:22:29.904 --> 03:22:31.339 SITUATION HERE IN CALIFORNIA. 03:22:31.405 --> 03:22:32.707 SO IF YOU'RE LOOKING ON AN 03:22:32.773 --> 03:22:33.808 ANNUAL BASIS ABOUT THE 03:22:33.875 --> 03:22:36.010 REDEMPTION OF THE CREDIT, THEN 03:22:36.077 --> 03:22:37.378 TYPICALLY YOU SEE IT'S MUCH 03:22:37.445 --> 03:22:38.513 LOWER THAN THE CAPS THAT WE 03:22:38.579 --> 03:22:44.986 HAVE. OKAY. THANK YOU. SORRY, 03:22:45.052 --> 03:22:46.387 JUST VERY QUICKLY TO BROADLY 03:22:46.454 --> 03:22:48.589 AGREE, BUT ALSO NOTE THAT THE 03:22:48.656 --> 03:22:49.290 REFUNDABILITY PROVISIONS HAVE 03:22:49.357 --> 03:22:51.792 BEEN MADE A LOT MORE READILY 03:22:51.859 --> 03:22:52.927 AVAILABLE. AND SO I THINK 03:22:52.994 --> 03:22:53.961 THAT'S GOING TO, YOU KNOW, 03:22:54.028 --> 03:22:56.130 NUDGE THE TOTAL, THE LONG TERM 03:22:56.197 --> 03:22:57.131 COST OF THE PROGRAM MUCH CLOSER 03:22:57.198 --> 03:22:58.933 TO THE SORT OF THE HEADLINE 03:22:59.000 --> 03:23:05.172 NUMBER. THANK YOU. DID YOU DID 03:23:05.239 --> 03:23:07.375 YOU HAVE ANY QUESTIONS? COULD 03:23:07.441 --> 03:23:08.809 YOU REPEAT WHAT YOU JUST SAID 03:23:08.876 --> 03:23:11.279 OR SAY IT MORE SLOWLY? I DIDN'T 03:23:11.345 --> 03:23:15.583 CATCH THAT. MY APOLOGIES. SO 03:23:15.650 --> 03:23:16.951 LIGHT WAS MENTIONED. YOU KNOW, 03:23:17.018 --> 03:23:19.520 OFTEN A TAX CREDIT IS AWARDED 03:23:19.587 --> 03:23:21.722 TO A PRODUCTION COMPANY, BUT 03:23:21.789 --> 03:23:23.224 THEY MIGHT HAVE TO WAIT UNTIL 03:23:23.291 --> 03:23:24.926 THEY COMPLETE PRODUCTION. AND 03:23:24.992 --> 03:23:26.093 THEN IN THE PAST, UNTIL THEY 03:23:26.160 --> 03:23:28.329 HAD TAX LIABILITY TO UTILIZE 03:23:28.396 --> 03:23:29.997 THE CREDIT. BUT WHAT HAS 03:23:30.064 --> 03:23:31.299 HAPPENED IN THE LAST FEW YEARS 03:23:31.365 --> 03:23:32.500 IS WE INTRODUCE REFUNDABILITY 03:23:32.567 --> 03:23:33.901 FOR THE FILM TAX CREDIT, AND 03:23:33.968 --> 03:23:35.336 THEN MADE IT SORT OF MADE IT 03:23:35.403 --> 03:23:37.572 APPLY TO MORE AWARDEES. AND SO 03:23:37.638 --> 03:23:39.273 WHEN YOU AND SOME, IN SOME 03:23:39.340 --> 03:23:40.775 CASES SHORTEN THE PERIOD IN 03:23:40.841 --> 03:23:42.243 WHICH YOU CAN GET THE CREDIT 03:23:42.310 --> 03:23:44.345 REFUNDED. SO IN THAT CASE, YOU 03:23:44.412 --> 03:23:46.414 ARE ESSENTIALLY ACCELERATING 03:23:46.480 --> 03:23:48.282 THE SCHEDULE IN WHICH YOU GET 03:23:48.349 --> 03:23:49.450 THE BENEFIT OF THE CREDIT. SO 03:23:49.517 --> 03:23:51.118 WE'RE PAYING WITH REFUNDABILITY, 03:23:51.185 --> 03:23:52.987 YOU CAN IMMEDIATELY ELECT TO 03:23:53.054 --> 03:23:55.923 HAVE THE CREDIT PAID OUT TO YOU. 03:23:55.990 --> 03:23:58.426 AND SO IT SORT OF MOVES UP IN 03:23:58.492 --> 03:24:00.161 TIME WHEN THE CREDIT IS BEING 03:24:00.227 --> 03:24:01.629 PAID OUT BY THE STATE, 03:24:01.696 --> 03:24:02.763 ESSENTIALLY, OR THE FISCAL COST 03:24:02.830 --> 03:24:05.566 TO THE STATE. OKAY. AND SO THE 03:24:05.633 --> 03:24:06.801 COST OF THE CREDIT, THE CREDIT, 03:24:06.867 --> 03:24:08.636 AND THE THE CREDIT, THE BENEFIT 03:24:08.703 --> 03:24:10.338 THAT THE COMPANY IS GETTING IS 03:24:10.404 --> 03:24:11.639 HAPPENING AT THE SAME TIME AS 03:24:11.706 --> 03:24:12.873 IT'S THE COST OF THE STATE, NOT 03:24:12.940 --> 03:24:14.709 ALWAYS THE EXACT SAME TIME, BUT, 03:24:14.775 --> 03:24:16.777 YOU KNOW, MORE IMMEDIATE THAN 03:24:16.844 --> 03:24:18.546 BEFORE. OKAY. I THINK, YOU KNOW, 03:24:18.613 --> 03:24:20.348 PREVIOUSLY WE HAD CASES WHERE 03:24:20.414 --> 03:24:21.782 COMPANY PRODUCTION COMPANIES 03:24:21.849 --> 03:24:23.584 WOULD GET BIG CREDIT AWARDS, 03:24:23.651 --> 03:24:25.486 BUT THEY DIDN'T. MAYBE THEY HAD 03:24:25.553 --> 03:24:27.021 OTHER CREDITS, OR MAYBE THEY 03:24:27.088 --> 03:24:28.122 HAD OTHER DEDUCTIONS AND THEY 03:24:28.189 --> 03:24:29.090 DIDN'T HAVE ENOUGH TAX 03:24:29.156 --> 03:24:30.992 LIABILITY TO USE THEIR CREDITS. 03:24:31.058 --> 03:24:32.627 AND SO THEY SORT OF JUST DELAY, 03:24:32.693 --> 03:24:34.061 YOU KNOW, CARRIED THEM FORWARD. 03:24:34.128 --> 03:24:35.830 BUT OBVIOUSLY, YOU KNOW, THE 03:24:35.896 --> 03:24:38.065 CREDITS LOSE VALUE ECONOMICALLY 03:24:38.132 --> 03:24:39.133 SPEAKING OVER TIME AND THEY 03:24:39.200 --> 03:24:41.569 BECOME LESS VALUABLE. AND SO 03:24:41.636 --> 03:24:43.070 WITH REFUNDABILITY, YOU CAN 03:24:43.137 --> 03:24:44.105 JUST IMMEDIATELY, IF YOU DON'T 03:24:44.171 --> 03:24:45.773 HAVE TAX LIABILITY, YOU JUST 03:24:45.840 --> 03:24:46.807 IMMEDIATELY ELECT TO BE 03:24:46.874 --> 03:24:47.942 REFUNDED FOR THOSE TAX CREDITS. 03:24:48.009 --> 03:24:52.079 SO, OKAY. I MEAN, ON THE TOPIC 03:24:52.146 --> 03:24:55.249 OF KIND OF HOW WE'RE SCORING 03:24:55.316 --> 03:24:58.886 THIS, THIS IS A, A HOT TOPIC ON 03:24:58.953 --> 03:25:01.055 THE BUDGET COMMITTEE IN 03:25:01.122 --> 03:25:02.156 SACRAMENTO ON A NUMBER OF 03:25:02.223 --> 03:25:03.958 ISSUES. I SIT ON THE BUDGET 03:25:04.025 --> 03:25:06.460 HEALTH SUBCOMMITTEE AND, YOU 03:25:06.527 --> 03:25:07.528 KNOW, AND IT'S A CONVERSATION 03:25:07.595 --> 03:25:10.031 WE HAVE A LOT AROUND IF WE'RE 03:25:10.097 --> 03:25:11.799 DOING THESE HEALTH INVESTMENTS 03:25:11.866 --> 03:25:14.135 THAT ARE ENSURING THAT PEOPLE 03:25:14.201 --> 03:25:15.469 ARE GETTING PREVENTATIVE CARE, 03:25:15.536 --> 03:25:16.937 FOR EXAMPLE, INSTEAD OF GOING 03:25:17.004 --> 03:25:18.706 INTO THE ER AND, YOU KNOW, 03:25:18.773 --> 03:25:19.774 GETTING YOUR MEDICINE OR 03:25:19.840 --> 03:25:21.909 GETTING TREATMENT, WHICH IS 03:25:21.976 --> 03:25:25.246 MUCH, MUCH MORE COSTLY, YOU 03:25:25.312 --> 03:25:27.181 KNOW, WHY IS THAT NOT KIND OF 03:25:27.248 --> 03:25:31.285 CAPTURED IN THE COST OF IN THE 03:25:31.352 --> 03:25:33.220 SCORING THAT'S DONE BY A LA Ó 03:25:33.287 --> 03:25:37.725 OR DEPARTMENT OF FINANCE. AND, 03:25:37.792 --> 03:25:38.926 AND WE MAKE THAT POINT EVERY 03:25:38.993 --> 03:25:43.297 YEAR AND IT DOESN'T CHANGE. AND, 03:25:43.364 --> 03:25:45.232 YOU KNOW, AND I THINK THAT THIS 03:25:45.299 --> 03:25:49.737 IS ANOTHER EXAMPLE OF WHY 03:25:49.804 --> 03:25:53.240 THINKING MORE ABOUT DYNAMIC 03:25:53.307 --> 03:25:54.842 SCORING IS SO IMPORTANT BECAUSE, 03:25:54.909 --> 03:25:57.244 YOU KNOW, IN CONVERSATIONS THAT 03:25:57.311 --> 03:26:00.081 I'VE HAD WITH STUDIOS IN MY 03:26:00.147 --> 03:26:01.549 DISTRICT, YOU KNOW, THEY'RE 03:26:01.615 --> 03:26:03.250 TALKING ABOUT TALKING TO SOME 03:26:03.317 --> 03:26:05.186 OF THEIR EMPLOYEES ABOUT, YOU 03:26:05.252 --> 03:26:06.921 KNOW, SELLING THEIR HOMES OR 03:26:06.987 --> 03:26:08.355 LOSING THEIR HOMES BECAUSE 03:26:08.422 --> 03:26:10.491 THEY'RE NOT WORKING ANYMORE, 03:26:10.558 --> 03:26:12.660 YOU KNOW, THE KIND OF ECONOMIC 03:26:12.727 --> 03:26:15.596 IMPACT THAT THIS WILL MAKE IF 03:26:15.663 --> 03:26:19.133 THE INDUSTRY FAILS IN LOS 03:26:19.200 --> 03:26:23.104 ANGELES IS HARD TO IMAGINE. 03:26:23.170 --> 03:26:24.739 IT'S REALLY HARD TO IMAGINE 03:26:24.805 --> 03:26:30.711 WHAT THAT LOOKS LIKE. AND SO, 03:26:30.778 --> 03:26:34.315 YOU KNOW, SO THINKING ABOUT HOW 03:26:34.381 --> 03:26:36.417 WE DO THAT, I THINK IS A 03:26:36.484 --> 03:26:38.185 CRITICAL PART OF THE 03:26:38.252 --> 03:26:40.054 CONVERSATION THAT WE HAVE TO 03:26:40.121 --> 03:26:42.957 INCORPORATE. AND I WANTED TO GO 03:26:43.023 --> 03:26:45.426 BACK TO YOU, MR. HORTON. YOU 03:26:45.493 --> 03:26:47.528 MENTIONED YOU COULD TALK A 03:26:47.595 --> 03:26:48.763 LITTLE BIT MORE ABOUT THE CAP 03:26:48.829 --> 03:26:51.232 AND HOW IT INHIBITS. I MEAN, I 03:26:51.298 --> 03:26:52.032 UNDERSTAND THE POINT THAT'S 03:26:52.099 --> 03:26:54.502 BEING MADE THAT, YOU KNOW, THAT 03:26:54.568 --> 03:26:56.904 YOU HAVE TO KIND OF FIND A 03:26:56.971 --> 03:27:00.908 BALANCE, RIGHT? AND NOT JUST 03:27:00.975 --> 03:27:02.676 WILLY NILLY GIVE OUT A BUNCH OF 03:27:02.743 --> 03:27:04.145 TAX CREDITS TO THINGS THAT ARE 03:27:04.211 --> 03:27:05.246 PROBABLY NOT, YOU KNOW, GOING 03:27:05.312 --> 03:27:07.014 TO BE SUCCESSFUL OR CREATE A 03:27:07.081 --> 03:27:08.983 BIG, YOU KNOW, ECONOMIC BENEFIT 03:27:09.049 --> 03:27:10.317 OR, YOU KNOW, ETCETERA, 03:27:10.384 --> 03:27:13.854 ETCETERA. SO, YOU KNOW, SO 03:27:13.921 --> 03:27:16.056 FINDING THAT THAT SWEET SPOT, I 03:27:16.123 --> 03:27:18.259 THINK IS ALWAYS THE COMPLICATED 03:27:18.325 --> 03:27:21.462 PART OF LEGISLATIVE WORK. BUT I 03:27:21.529 --> 03:27:23.164 WANTED TO HEAR MORE ON YOUR 03:27:23.230 --> 03:27:24.298 THOUGHTS AROUND THE CAP. WELL, 03:27:24.365 --> 03:27:25.633 I MEAN, I THINK ESSENTIALLY, 03:27:25.699 --> 03:27:27.234 AND IT'S BEEN SAID IN THIS ROOM 03:27:27.301 --> 03:27:30.404 TODAY, I MEAN, THE, THE, THE 03:27:30.471 --> 03:27:32.640 PROGRAM THAT WAS JUST EXTENDED. 03:27:32.706 --> 03:27:34.408 I MEAN, WE CAN SEE THAT THE 03:27:34.475 --> 03:27:36.877 PROGRAM WORKS, BUT IT'S IT'S 03:27:36.944 --> 03:27:39.046 IT'S ALSO THE PROGRAM IS 03:27:39.113 --> 03:27:40.915 CONSTRAINED. AND, AND LIKE 03:27:40.981 --> 03:27:43.050 THERE'S A TOP ON ITS GROWTH. SO 03:27:43.117 --> 03:27:45.886 THE CAP IS, IS, IS LIMITING ITS 03:27:45.953 --> 03:27:48.088 GROWTH AND PREVENTING SOME OF 03:27:48.155 --> 03:27:49.523 THOSE INDIRECT TÍNH INDUCED 03:27:49.590 --> 03:27:50.524 EFFECTS THAT WE TALKED ABOUT 03:27:50.591 --> 03:27:52.660 EARLIER. SO WITHOUT, WITHOUT 03:27:52.726 --> 03:27:54.094 BROADER, WITHOUT INDUCING MORE 03:27:54.161 --> 03:27:56.297 BROADER ACTIVITY FROM THE TOP 03:27:56.363 --> 03:27:58.032 DOWN, WE'RE LIMITING SOME OF 03:27:58.098 --> 03:28:01.035 THE, THE LOCAL UPTAKE AND HOW 03:28:01.101 --> 03:28:02.436 THAT SPREADS OUT THROUGH OUR 03:28:02.503 --> 03:28:03.704 COMMUNITIES AND OUR ECOSYSTEMS. 03:28:03.771 --> 03:28:05.973 AND THIS JUST ISN'T IN LIKE, 03:28:06.040 --> 03:28:07.942 YOU KNOW, AND, AND THE LONGER 03:28:08.008 --> 03:28:10.678 THAT CAP OR, OR THE, THE MORE 03:28:10.744 --> 03:28:12.413 STRINGENT THAT CAP, I THINK THE 03:28:12.479 --> 03:28:14.748 MORE EROSION YOU'LL SEE FROM, 03:28:14.815 --> 03:28:16.951 FROM THOSE ECOSYSTEMS AND KIND 03:28:17.017 --> 03:28:18.619 OF PLAYS OUT FROM THE, FROM THE 03:28:18.686 --> 03:28:20.788 STORIES THAT WE'VE HEARD TODAY. 03:28:20.855 --> 03:28:24.792 SO I THINK, YOU KNOW, IT'S, 03:28:24.859 --> 03:28:27.328 IT'S ALL, YOU KNOW, IN THE, YOU 03:28:27.394 --> 03:28:29.230 KNOW, HOW WE BAKE THE, YOU KNOW, 03:28:29.296 --> 03:28:30.531 IN THE INGREDIENTS, LIKE IF, IF 03:28:30.598 --> 03:28:32.700 WE'RE DESIGNING THE CAP, THEN 03:28:32.766 --> 03:28:34.768 THEN IN THAT DESIGN, WE'RE 03:28:34.835 --> 03:28:35.903 DESIGNING SOME KIND OF 03:28:35.970 --> 03:28:37.304 LIMITATIONS AROUND THE 03:28:37.371 --> 03:28:38.038 EFFECTIVENESS OF, OF THE 03:28:38.105 --> 03:28:41.275 PROGRAM. AND ARE YOU, I DON'T 03:28:41.342 --> 03:28:43.043 KNOW IF YOU'D SAY, BUT ARE YOU 03:28:43.110 --> 03:28:46.313 A BELIEVER OF JUST SCRAP THE 03:28:46.380 --> 03:28:48.482 CAP OR YOU THINK SOME KIND OF 03:28:48.549 --> 03:28:50.684 CAP IS LIKE A REASONABLE 03:28:50.751 --> 03:28:52.486 SAFEGUARD THAT NEEDS TO BE 03:28:52.553 --> 03:28:54.288 SOMEWHERE? I THINK THERE'S, 03:28:54.355 --> 03:28:56.924 THERE'S GOT TO BE SOME LIKE, AS 03:28:56.991 --> 03:28:58.893 YOU SAID, AT THE, AT THE AT THE 03:28:58.959 --> 03:29:00.094 OPENING OF YOUR COMMENTS, LIKE 03:29:00.160 --> 03:29:02.196 WE'RE NOT ADVOCATING FOR LIKE 03:29:02.263 --> 03:29:06.867 FISCAL, YOU KNOW. YOU KNOW, 03:29:06.934 --> 03:29:08.002 SOME KIND OF FISCAL 03:29:08.068 --> 03:29:08.969 MISMANAGEMENT HERE, BUT THERE'S, 03:29:09.036 --> 03:29:10.804 THERE'S, THERE'S FROM A DYNAMIC 03:29:10.871 --> 03:29:12.239 SCORING STANDPOINT TO SEE HOW 03:29:12.306 --> 03:29:13.874 OTHER STATES HAVE BEEN ABLE TO 03:29:13.941 --> 03:29:14.975 FIND THAT BALANCE OR OTHER 03:29:15.042 --> 03:29:16.043 REGIONS SO THAT THEY CAN 03:29:16.110 --> 03:29:17.044 SUPPORT THEIR CRITICAL 03:29:17.111 --> 03:29:19.413 INDUSTRIES OR PRIORITY SECTORS 03:29:19.480 --> 03:29:20.781 THAT THEY'RE, YOU KNOW, THAT 03:29:20.848 --> 03:29:22.349 THEIR ECOSYSTEMS HAVE SPENT 03:29:22.416 --> 03:29:24.451 DECADES BUILDING OUT THAT THAT 03:29:24.518 --> 03:29:26.620 SEEMS TO BE, YOU KNOW, A POINT 03:29:26.687 --> 03:29:30.257 OF, OF, OF FURTHER ANALYSIS, 03:29:30.324 --> 03:29:31.825 LIKE, WHY DID THE STATE ABANDON 03:29:31.892 --> 03:29:33.527 MORE DYNAMIC SCORING IN THE 90S? 03:29:33.594 --> 03:29:35.663 I DON'T KNOW, BUT I MEAN, YOU 03:29:35.729 --> 03:29:37.464 KNOW, FIGURING THAT OUT AND 03:29:37.531 --> 03:29:38.799 YOU'VE MENTIONED THAT A COUPLE 03:29:38.866 --> 03:29:40.401 TIMES, CAN YOU TALK ABOUT THE 03:29:40.467 --> 03:29:42.069 DYNAMIC SCORING OF THE 90S THAT 03:29:42.136 --> 03:29:44.038 YOU SPEAK OF? I WAS NOT IN THE 03:29:44.104 --> 03:29:46.407 LEGISLATURE THEN, SO. WELL, IT 03:29:46.473 --> 03:29:47.675 SADLY, IT'S JUST A FOOTNOTE 03:29:47.741 --> 03:29:50.077 HERE IN MY TALKING POINTS. BUT, 03:29:50.144 --> 03:29:52.212 YOU KNOW, TO, TO GET A TO GET 03:29:52.279 --> 03:29:54.448 TO THE ROOT OF THAT AND MAYBE 03:29:54.515 --> 03:29:55.816 SOME LEGISLATIVE PRESSURES AT 03:29:55.883 --> 03:29:57.685 THE TIME. I MEAN, I WAS IN HIGH 03:29:57.751 --> 03:29:59.620 SCHOOL IN THE 90S, SO WE GOT TO 03:29:59.687 --> 03:30:01.155 FIGURE OUT, I'M ALSO CURIOUS 03:30:01.221 --> 03:30:03.357 NOW, AND I WOULD LOVE TO SEE A 03:30:03.424 --> 03:30:04.792 BIT ABOUT, YOU KNOW, WHAT THE, 03:30:04.858 --> 03:30:06.560 YOU KNOW, THE, THE AUTOPSY OF, 03:30:06.627 --> 03:30:08.128 OF THAT WOULD LOOK LIKE. SADLY, 03:30:08.195 --> 03:30:11.665 I DON'T, I DON'T KNOW RIGHT NOW. 03:30:11.732 --> 03:30:12.900 I DON'T KNOW IF ANYONE ELSE 03:30:12.967 --> 03:30:14.702 WANTED TO JUMP IN ON THIS 03:30:14.768 --> 03:30:15.769 CONVERSATION ABOUT JUST TO COME 03:30:15.836 --> 03:30:16.870 BACK MORE GENERALLY TO DYNAMIC 03:30:16.937 --> 03:30:17.972 SCORING. I THINK, YOU KNOW, 03:30:18.038 --> 03:30:19.673 DYNAMIC SCORING IS HARD. I 03:30:19.740 --> 03:30:20.841 THINK PEOPLE WILL TELL YOU, AND 03:30:20.908 --> 03:30:22.710 I THINK, YOU KNOW, YOUR EXAMPLE 03:30:22.776 --> 03:30:23.711 OF PROVIDING PREVENTATIVE CARE, 03:30:23.777 --> 03:30:24.712 YOU KNOW, MAYBE PROVIDING 03:30:24.778 --> 03:30:25.946 PREVENTATIVE CARE TO SOMEONE 03:30:26.013 --> 03:30:27.381 WHO DOESN'T HAVE ACCESS 03:30:27.448 --> 03:30:30.250 OTHERWISE HAS INDUCED AN 03:30:30.317 --> 03:30:32.086 ANCILLARY BENEFITS, BUT 03:30:32.152 --> 03:30:33.520 TRACKING THOSE BENEFITS DOWN 03:30:33.587 --> 03:30:35.155 THE ROAD, THAT MIGHT LEAD TO 03:30:35.222 --> 03:30:36.290 THEM DOING BETTER IN SCHOOL, 03:30:36.357 --> 03:30:37.291 WHICH THEN LEADS TO THEM 03:30:37.358 --> 03:30:39.193 GETTING A BETTER JOB IN THE 03:30:39.259 --> 03:30:40.227 FUTURE. IT'S REALLY HARD TO 03:30:40.294 --> 03:30:41.462 MAYBE ALWAYS TRACK ALL OF THESE. 03:30:41.528 --> 03:30:43.664 AND SO RATHER THAN LIKE A 03:30:43.731 --> 03:30:45.065 BLANKET, YOU KNOW, DYNAMIC 03:30:45.132 --> 03:30:45.799 SCORING EVERYTHING, YOU KNOW, 03:30:45.866 --> 03:30:47.368 THERE ARE SOME THERE ARE 03:30:47.434 --> 03:30:48.369 DEFINITELY POLICIES THAT MIGHT 03:30:48.435 --> 03:30:49.536 BE MORE SUITED TO DYNAMIC 03:30:49.603 --> 03:30:50.571 SCORING WHERE WE HAVE BETTER 03:30:50.637 --> 03:30:51.605 INFORMATION, WHERE WE HAVE LOTS 03:30:51.672 --> 03:30:54.041 OF ECONOMIC LITERATURE TO, TO 03:30:54.108 --> 03:30:55.242 PULL ON. AND SO IT'S REALLY 03:30:55.309 --> 03:30:57.144 MORE OF A CASE BY CASE BASIS. 03:30:57.211 --> 03:30:58.712 BUT IN GENERAL, DYNAMIC SCORING 03:30:58.779 --> 03:31:00.247 IS DIFFICULT AND SUBJECT TO A 03:31:00.314 --> 03:31:03.751 LOT OF UNCERTAINTY. OKAY. YEAH. 03:31:03.817 --> 03:31:06.653 OKAY. OKAY. I HAD A COUPLE 03:31:06.720 --> 03:31:09.957 QUESTIONS FOR, FOR MR. CHUNG AS 03:31:10.024 --> 03:31:11.058 WELL. AND MAYBE, MAYBE YOU CAN 03:31:11.125 --> 03:31:13.027 ADD ON TO THIS. YEAH. DO YOU 03:31:13.093 --> 03:31:14.895 WANT TO ADD ON TO RESPOND TO 03:31:14.962 --> 03:31:16.030 SOME OF CHÁVEZ QUESTION, AS YOU 03:31:16.096 --> 03:31:17.531 WERE MENTIONING ABOUT THE 03:31:17.598 --> 03:31:19.933 PREVENTIVE CARE ASPECT? RIGHT. 03:31:20.000 --> 03:31:21.135 PERHAPS THE WAY TO LOOK AT IT 03:31:21.201 --> 03:31:23.937 IS THAT WE'RE LOOKING AT 50,000 03:31:24.004 --> 03:31:26.407 JOBS LESS THAN BEFORE. IS THAT 03:31:26.473 --> 03:31:27.941 NOT WORTH CALIFORNIA TO DO 03:31:28.008 --> 03:31:29.676 SOMETHING ABOUT? SO MAYBE WE 03:31:29.743 --> 03:31:30.878 CAN LOOK AT WHAT THOSE JOBS 03:31:30.944 --> 03:31:32.679 WERE BEFORE, HOW MUCH THEY PAID, 03:31:32.746 --> 03:31:34.014 AND WHAT WE'VE LOST IN THAT 03:31:34.081 --> 03:31:35.482 PROCESS. SECOND, AS WE'RE 03:31:35.549 --> 03:31:38.652 LOOKING IN THE FUTURE IS 03:31:38.719 --> 03:31:39.787 PREVIOUSLY WE HAD THE STUDIO 03:31:39.853 --> 03:31:41.255 SPACE. WE HAVE THE CAST AND 03:31:41.321 --> 03:31:43.724 CREW MEMBERS WE HAVE. WE WERE 03:31:43.791 --> 03:31:46.627 UNRIVALED RIGHT NOW. GEORGIA. 03:31:46.693 --> 03:31:48.362 OTHER LOCATIONS HAVE THE 03:31:48.429 --> 03:31:49.797 SOUNDSTAGES. THEY NOW HAVE THE 03:31:49.863 --> 03:31:52.032 THE CREW. THEY NOW HAVE THE 03:31:52.099 --> 03:31:53.167 INFRASTRUCTURE. AND SPEAKING OF 03:31:53.233 --> 03:31:55.035 WHICH, WE SHOULD ALSO INVEST 03:31:55.102 --> 03:31:56.403 INTO STUDIO INFRASTRUCTURE HERE 03:31:56.470 --> 03:31:57.971 TO MAKE US MORE COMPETITIVE AS 03:31:58.038 --> 03:32:00.307 WELL. BUT THIS IS ABOUT 03:32:00.374 --> 03:32:01.742 INVESTING IN THE FUTURE ECONOMY 03:32:01.809 --> 03:32:03.544 FOR LEDC. WE DON'T DO JUST 03:32:03.610 --> 03:32:05.012 ENTERTAINMENT. WE'VE BEEN 03:32:05.079 --> 03:32:06.046 PUSHING TO DO MORE 03:32:06.113 --> 03:32:07.181 INFRASTRUCTURE DEVELOPMENT IN 03:32:07.247 --> 03:32:09.316 AEROSPACE, DEFENSE AND SPACE 03:32:09.383 --> 03:32:10.484 COMMERCIALIZATION FOR THE 03:32:10.551 --> 03:32:11.518 ENTIRE STATE, BIOSCIENCE AND SO 03:32:11.585 --> 03:32:13.720 ON AND SO FORTH. THE WAY TO 03:32:13.787 --> 03:32:15.789 LOOK AT IT, I WOULD SAY, IS 03:32:15.856 --> 03:32:17.624 ALSO, YES, WE NEED TO DO MORE 03:32:17.691 --> 03:32:19.326 STUDY ON HOW THE REST OF THE 03:32:19.393 --> 03:32:23.297 STATES ARE CALCULATING HOW 03:32:23.363 --> 03:32:24.364 THEY'RE THEY'RE, THEY'RE 03:32:24.431 --> 03:32:26.567 GETTING THEIR INVESTMENTS BACK. 03:32:26.633 --> 03:32:29.103 BUT IF GEORGIA, ILLINOIS, 03:32:29.169 --> 03:32:30.137 MASSACHUSETTS, NEW YORK, NEW 03:32:30.204 --> 03:32:31.972 JERSEY, LOUISIANA, NEW YORK, 03:32:32.039 --> 03:32:34.108 BRITISH COLUMBIA, QUEBEC, 03:32:34.174 --> 03:32:36.310 AUSTRALIA, IRELAND ALL HAVE TAX 03:32:36.376 --> 03:32:38.779 INCENTIVES. YES, WE SHOULD LOOK 03:32:38.846 --> 03:32:40.881 AT IT, BUT I DON'T THINK WE'RE 03:32:40.948 --> 03:32:41.949 THE SMARTEST PEOPLE IN THE 03:32:42.015 --> 03:32:43.250 WORLD. WE ARE SMART. BUT THE 03:32:43.317 --> 03:32:44.918 THING IS, THERE'S A REASON WHY 03:32:44.985 --> 03:32:45.919 THEY'RE CREATING THESE TAX 03:32:45.986 --> 03:32:47.054 INCENTIVES AS WELL. SO THOSE 03:32:47.121 --> 03:32:48.622 ARE THE PREVENTIVE ASPECTS IS 03:32:48.689 --> 03:32:50.390 TO LOOK AT THE SYMPTOMS AND HOW 03:32:50.457 --> 03:32:51.925 THE REST OF THE WORLD IS 03:32:51.992 --> 03:32:54.695 TREATING THIS, THIS WHY THEY'RE 03:32:54.761 --> 03:32:55.662 INVESTING IN THIS PARTICULAR 03:32:55.729 --> 03:33:00.300 SECTOR. THANK YOU. I JUST HAD A 03:33:00.367 --> 03:33:01.368 COUPLE QUICK QUESTIONS AND THEN 03:33:01.435 --> 03:33:04.771 WE'LL WRAP UP. SO THE $1.07 03:33:04.838 --> 03:33:07.207 THAT WAS PROJECTED FOR THE 2.0 03:33:07.274 --> 03:33:10.477 PROGRAM IN TERMS OF TAX 03:33:10.544 --> 03:33:12.246 REVENUES THAT COME BACK TO THE 03:33:12.312 --> 03:33:14.047 STATE AND LOCAL, STATE AND 03:33:14.114 --> 03:33:15.916 LOCAL TOGETHER. RIGHT. CAN YOU 03:33:15.983 --> 03:33:17.651 JUST DESCRIBE FOR ME SOME OF 03:33:17.718 --> 03:33:18.785 THE THINGS THAT ARE NOT 03:33:18.852 --> 03:33:22.723 INCLUDED IN THAT? SO I, I, I'M 03:33:22.789 --> 03:33:24.925 ASSUMING THAT BECAUSE IT'S HARD 03:33:24.992 --> 03:33:26.627 TO QUANTIFY SOME OF THESE 03:33:26.693 --> 03:33:27.861 THINGS THAT YOU ACTUALLY HAVE 03:33:27.928 --> 03:33:30.664 NOT INCLUDED A LOT OF THE TAX 03:33:30.731 --> 03:33:32.099 REVENUES THAT COME FROM SOME OF 03:33:32.166 --> 03:33:33.867 THE INDIRECT AND SOME OF THE 03:33:33.934 --> 03:33:35.769 INDUCED ECONOMIC ACTIVITY. CAN 03:33:35.836 --> 03:33:37.471 YOU JUST COVER WHAT IS NOT 03:33:37.538 --> 03:33:40.007 INCLUDED IN THE DOLLAR $0.07 03:33:40.073 --> 03:33:41.408 SINCE, SHANNON, YOU WROTE THAT 03:33:41.475 --> 03:33:42.609 YOU WANT TO TACKLE THIS FIRST, 03:33:42.676 --> 03:33:45.712 I'LL ADD. SO WE ARE LOOKING AT 03:33:45.779 --> 03:33:47.915 THE FISCAL RETURN ON THE SUPPLY 03:33:47.981 --> 03:33:50.417 CHAIN AND ESTIMATION AND OF 03:33:50.484 --> 03:33:52.553 HOUSEHOLDS EXPENDITURES FROM 03:33:52.619 --> 03:33:54.054 EMPLOYEES OF THE DIRECT 03:33:54.121 --> 03:33:55.856 INDUSTRY AND THE SUPPLY CHAIN 03:33:55.923 --> 03:33:57.257 ACTIVITY. WHAT WE AREN'T 03:33:57.324 --> 03:34:00.127 LOOKING AT IS FEDERAL FISCAL 03:34:00.194 --> 03:34:01.595 RETURN. SO WE'RE LOOKING AT 03:34:01.662 --> 03:34:02.429 SPECIFICALLY THAT AGAIN ONE 03:34:02.496 --> 03:34:04.097 MORE TIME, FEDERAL FISCAL 03:34:04.164 --> 03:34:06.300 RETURN. WE EXCLUDED THAT 03:34:06.366 --> 03:34:07.734 DELIBERATELY SO THAT WE CAN 03:34:07.801 --> 03:34:09.169 FOCUS ON YOUR CITY LEVEL, YOUR 03:34:09.236 --> 03:34:10.504 COUNTY LEVEL, AND YOUR STATE 03:34:10.571 --> 03:34:13.106 LEVEL FISCAL RETURN. SO THAT 03:34:13.173 --> 03:34:14.541 INCLUDES SUPPLY CHAIN AS WELL. 03:34:14.608 --> 03:34:17.211 SO IN TERMS IS SUPPLY CHAIN, 03:34:17.277 --> 03:34:18.312 WHEN YOU TALK ABOUT SUPPLY 03:34:18.378 --> 03:34:20.647 CHAIN, DOES THAT INCLUDE ALL 03:34:20.714 --> 03:34:22.883 THE SMALL BUSINESS EXPENDITURES 03:34:22.950 --> 03:34:25.419 THAT COME DIRECTLY FROM THE 03:34:25.485 --> 03:34:27.120 WHAT THE PRODUCTIONS ARE 03:34:27.187 --> 03:34:28.889 SPENDING. RIGHT. SO THOSE WOULD 03:34:28.956 --> 03:34:30.457 BE ALL YOUR CONTRACTED VENDORS. 03:34:30.524 --> 03:34:31.825 OKAY. SO THE TAXES THEY'RE 03:34:31.892 --> 03:34:34.328 PAYING AND SO WOULD IT THEN BE 03:34:34.394 --> 03:34:36.463 INCLUDE THE TAXES THAT THE 03:34:36.530 --> 03:34:37.598 EMPLOYEES OF THE SMALL 03:34:37.664 --> 03:34:39.433 BUSINESSES ARE PAYING? YES. 03:34:39.499 --> 03:34:43.337 OKAY. AND WOULD IT INCLUDE THE 03:34:43.403 --> 03:34:45.472 WOULD IT INCLUDE THE 03:34:45.539 --> 03:34:47.708 EXPENDITURES THAT RELATE TO 03:34:47.774 --> 03:34:49.476 IMPACTS ON THE TOURISM INDUSTRY? 03:34:49.543 --> 03:34:54.181 NO. OKAY. NO. WOULD IT WOULD IT 03:34:54.248 --> 03:34:57.017 I ASSUME THAT WHEN THE BUDGET 03:34:57.084 --> 03:35:01.388 IS BEING EVALUATED, IT'S NOT 03:35:01.455 --> 03:35:03.190 INCLUDING, FOR EXAMPLE, 03:35:03.257 --> 03:35:04.958 EXPENDITURES RELATED TO EITHER 03:35:05.025 --> 03:35:07.828 JOB LOSS OR SOCIAL SAFETY NET 03:35:07.894 --> 03:35:09.263 PROGRAMS. AND I'LL LET MR. 03:35:09.329 --> 03:35:11.798 ROWAN ANSWER THAT IF HE CAN. 03:35:11.865 --> 03:35:14.368 BUT I'M ASSUMING THAT WE'RE NOT 03:35:14.434 --> 03:35:15.736 BASICALLY TALKING ABOUT ONCE 03:35:15.802 --> 03:35:18.639 WE'RE LOSING JOBS, WE'RE NOT 03:35:18.705 --> 03:35:22.976 EVALUATING THE COST RELATED TO 03:35:23.043 --> 03:35:24.378 EMPLOYMENT, UNEMPLOYMENT 03:35:24.444 --> 03:35:26.280 COMPENSATION OR THE LOSS, YOU 03:35:26.346 --> 03:35:30.517 KNOW, TO MEDI-CAL COVERAGE, ALL 03:35:30.584 --> 03:35:32.653 OF THOSE KINDS OF IMPACTS THAT 03:35:32.719 --> 03:35:34.888 RELATE TO THAT ARE CONNECTED TO 03:35:34.955 --> 03:35:36.256 JOB LOSSES. AND I'M ASSUMING 03:35:36.323 --> 03:35:37.724 THAT'S NOT PART OF THE DOLLAR 03:35:37.791 --> 03:35:39.559 $0.07. NO, THAT'S NOT OUR 03:35:39.626 --> 03:35:41.295 ANALYSIS LOOKS SPECIFICALLY AT 03:35:41.361 --> 03:35:42.496 THOSE PRODUCTIONS THAT RECEIVE 03:35:42.562 --> 03:35:44.865 THE CREDIT. SO IT'S ONLY 03:35:44.931 --> 03:35:46.400 LOOKING AT THE RIPPLE EFFECT OF 03:35:46.466 --> 03:35:48.168 THAT SPENDING, AND IT'S NOT 03:35:48.235 --> 03:35:50.704 TAKING INTO ACCOUNT ANY KIND OF 03:35:50.771 --> 03:35:53.540 THE THE COUNTER EFFECTS OF THE 03:35:53.607 --> 03:35:54.975 DECLINE IN THE INDUSTRY IS 03:35:55.042 --> 03:35:56.810 ACTUALLY EXPERIENCING. IT ALSO 03:35:56.877 --> 03:35:59.079 DOESN'T CAPTURE THE FULL IMPACT 03:35:59.146 --> 03:36:00.180 OF THE INDUSTRY HERE IN THE 03:36:00.247 --> 03:36:02.015 STATE. WE ARE ONLY LOOKING AT 03:36:02.082 --> 03:36:03.016 THOSE PRODUCTIONS THAT ARE 03:36:03.083 --> 03:36:04.117 RECEIVING THE CREDIT. SO WHAT 03:36:04.184 --> 03:36:06.086 WE AREN'T LOOKING AT IN TERMS 03:36:06.153 --> 03:36:07.754 OF A FISCAL RETURN IS THE REST 03:36:07.821 --> 03:36:09.256 OF THE ACTIVITY THAT TAKES 03:36:09.323 --> 03:36:10.324 PLACE IN THE INDUSTRY THAT 03:36:10.390 --> 03:36:11.958 DON'T RECEIVE THE CREDIT. SO IF 03:36:12.025 --> 03:36:14.061 YOU DID INCORPORATE THAT 03:36:14.127 --> 03:36:15.662 ELEMENT, YOU WOULD HAVE YOU'D 03:36:15.729 --> 03:36:16.930 BE CAPTURING A MUCH LARGER 03:36:16.997 --> 03:36:18.498 FISCAL RETURN ASSOCIATED WITH 03:36:18.565 --> 03:36:20.200 THE INDUSTRY. THERE'S ONLY A 03:36:20.267 --> 03:36:22.269 SUBSET. AND BY THAT, WHAT 03:36:22.336 --> 03:36:24.905 YOU'RE TALKING ABOUT IS THE THE 03:36:24.971 --> 03:36:26.506 X BILLIONS OF DOLLARS RELATED 03:36:26.573 --> 03:36:27.941 TO ALL OF THE PRODUCTIONS THAT 03:36:28.008 --> 03:36:30.277 WENT TO GEORGIA OR CANADA. IS 03:36:30.344 --> 03:36:32.045 THAT IS THAT RIGHT? THAT WE'RE 03:36:32.112 --> 03:36:34.214 NOT COUNTING THE LOSSES RELATED 03:36:34.281 --> 03:36:37.818 TO THAT, NOT THE LOSS, THE 03:36:37.884 --> 03:36:39.619 ACTIVITY THAT IS TAKING PLACE 03:36:39.686 --> 03:36:41.788 HERE. WITHOUT CREDITS, WE DON'T 03:36:41.855 --> 03:36:44.825 FACTOR THAT INTO QUANTIFYING 03:36:44.891 --> 03:36:47.928 THAT WHOLE SIZE OF THE INDUSTRY 03:36:47.994 --> 03:36:49.763 AND ITS ECONOMIC IMPACT. SO 03:36:49.830 --> 03:36:51.131 WHEN YOU'RE WHEN STEVEN 03:36:51.198 --> 03:36:52.632 MENTIONED THE CONTRIBUTION TO 03:36:52.699 --> 03:36:54.735 GDP THAT WAS AN INDUSTRY WIDE, 03:36:54.801 --> 03:36:55.869 THIS IS HOW MUCH IT'S 03:36:55.936 --> 03:36:56.870 CONTRIBUTING TO OUR ECONOMY. 03:36:56.937 --> 03:36:58.739 THIS IS THE PROPORTION OF OUR 03:36:58.805 --> 03:37:00.841 OUR ECONOMY HERE IN THE STATE. 03:37:00.907 --> 03:37:02.743 WHEN WE'RE LOOKING AT THIS ROI 03:37:02.809 --> 03:37:04.444 FROM THE PROGRAM, IT'S ONLY 03:37:04.511 --> 03:37:06.279 SPECIFIC TO THE PROGRAM AND NOT 03:37:06.346 --> 03:37:08.782 TAKING INTO EFFECT THE NET 03:37:08.849 --> 03:37:10.217 CHANGES THAT OR NEGATIVE 03:37:10.283 --> 03:37:11.651 EFFECTS THAT ARE HAPPENING 03:37:11.718 --> 03:37:13.820 INDUSTRY WIDE. GOT IT. THANK 03:37:13.887 --> 03:37:15.589 YOU. MR. I DON'T KNOW IF YOU 03:37:15.655 --> 03:37:20.360 WANT TO ADD ANYTHING. JUST A 03:37:20.427 --> 03:37:21.762 COUPLE OF THINGS. I MEAN, 03:37:21.828 --> 03:37:23.196 OBVIOUSLY, I, YOU KNOW, WE HAVE 03:37:23.263 --> 03:37:24.331 A RESPECTFUL, YOU KNOW, MAYBE 03:37:24.398 --> 03:37:25.699 DIFFERENCE IN OPINION AND, YOU 03:37:25.766 --> 03:37:27.200 KNOW, LIKE, LIKE I MENTIONED IN 03:37:27.267 --> 03:37:28.301 MY INITIAL COMMENTS, THERE ARE 03:37:28.368 --> 03:37:30.137 ALL THESE INDIRECT AND KNOCK ON 03:37:30.203 --> 03:37:32.205 EFFECTS OF PROVIDING INCENTIVES 03:37:32.272 --> 03:37:34.007 AND, YOU KNOW, A FISCAL BOOST 03:37:34.074 --> 03:37:36.510 TO A PARTICULAR INDUSTRY. BUT 03:37:36.576 --> 03:37:37.978 THAT BECAUSE OF THE WAY THE 03:37:38.044 --> 03:37:39.112 STATE ALLOCATES ITS MONEY, THAT 03:37:39.179 --> 03:37:40.914 WOULD ALSO BE THE CASE WITH 03:37:40.981 --> 03:37:42.015 OTHER USES OF MONEY. AND SO, 03:37:42.082 --> 03:37:43.884 YOU KNOW, A, AN ANALYSIS WOULD 03:37:43.950 --> 03:37:45.585 HAVE TO BALANCE THOSE TWO AND 03:37:45.652 --> 03:37:46.987 HAVE TO TAKE INTO ACCOUNT THE 03:37:47.053 --> 03:37:48.121 OPPORTUNITY COST OF NOT FUNDING 03:37:48.188 --> 03:37:49.189 SOMETHING ELSE. AND THEN JUST 03:37:49.256 --> 03:37:50.991 VERY QUICKLY, I KNOW YOU SORT 03:37:51.057 --> 03:37:53.093 OF BRIEFLY MENTIONED, YOU KNOW, 03:37:53.160 --> 03:37:54.528 SCORING AND THINGS LIKE THAT. 03:37:54.594 --> 03:37:55.962 AND WE CAN'T REALLY SPEAK TO 03:37:56.029 --> 03:37:56.730 DEPARTMENT FINANCES, NOT HERE. 03:37:56.797 --> 03:37:58.532 WE DON'T REALLY WANT TO SPEAK 03:37:58.598 --> 03:37:59.666 FOR THEM. BUT YEAH, YOU ARE, 03:37:59.733 --> 03:38:01.535 THEY ARE, THEY ARE NOT TRYING 03:38:01.601 --> 03:38:02.669 TO CONSIDER ALL THESE INDUCED 03:38:02.736 --> 03:38:03.603 AND DYNAMIC EFFECTS WHEN 03:38:03.670 --> 03:38:04.671 THEY'RE DOING THEIR SCORING. 03:38:04.738 --> 03:38:06.840 IT'S STATIC. YEAH. WELL THANK 03:38:06.907 --> 03:38:08.241 YOU. I WANT TO THANK EVERYONE 03:38:08.308 --> 03:38:10.343 ON THE PANEL TODAY FOR COMING. 03:38:10.410 --> 03:38:11.778 I'M GOING TO NOW. THANK YOU 03:38:11.845 --> 03:38:13.447 VERY MUCH. WE'RE GOING TO 03:38:13.513 --> 03:38:14.648 ACTUALLY ALLOW MEMBERS HERE TO 03:38:14.714 --> 03:38:16.650 MAKE SOME CLOSING COMMENTS. I 03:38:16.716 --> 03:38:18.218 DON'T KNOW IF IF YOU'D LIKE TO 03:38:18.285 --> 03:38:21.588 START ASSEMBLYMEMBER'S JABO, DO 03:38:21.655 --> 03:38:22.989 YOU WANT TO GO FIRST? NICK. 03:38:23.056 --> 03:38:24.724 YEAH, WELL, I'LL RECOGNIZE 03:38:24.791 --> 03:38:26.526 ASSEMBLY MEMBER SCHULTZ FIRST. 03:38:26.593 --> 03:38:28.361 THANK YOU VERY MUCH, MR. CHAIR. 03:38:28.428 --> 03:38:29.463 I'LL BE BRIEF. REALLY 03:38:29.529 --> 03:38:30.597 APPRECIATE EVERYONE COMING DOWN 03:38:30.664 --> 03:38:31.998 TODAY. AND I'M GOING TO STICK 03:38:32.065 --> 03:38:33.099 AROUND FOR PUBLIC COMMENT, TOO. 03:38:33.166 --> 03:38:34.901 I JUST WANTED TO SAY FOR THE 03:38:34.968 --> 03:38:36.102 LAST PANEL, I DIDN'T ASK ANY 03:38:36.169 --> 03:38:37.204 QUESTIONS. I REALLY APPRECIATED 03:38:37.270 --> 03:38:38.872 THE TESTIMONY, BUT THE ONLY 03:38:38.939 --> 03:38:40.006 OBSERVATION I WANTED TO MAKE IS 03:38:40.073 --> 03:38:41.174 I JUST THINK THERE'S SOME 03:38:41.241 --> 03:38:42.943 THINGS LIKE, YOU KNOW, WHEN YOU 03:38:43.009 --> 03:38:44.177 SEE IT, FOR EXAMPLE, I KNOW 03:38:44.244 --> 03:38:46.012 THAT WHEN PEOPLE IN MY DISTRICT 03:38:46.079 --> 03:38:47.447 ARE WORKING, THE ECONOMIC 03:38:47.514 --> 03:38:49.249 BENEFITS ARE TENFOLD. AND I 03:38:49.316 --> 03:38:50.317 DON'T REALLY DON'T NEED AN 03:38:50.383 --> 03:38:51.451 ANALYST TO TELL ME THAT. NO 03:38:51.518 --> 03:38:53.253 DISRESPECT TO ANYONE, IT'S JUST 03:38:53.320 --> 03:38:55.255 LIKE I KNOW IT BECAUSE I SEE IT 03:38:55.322 --> 03:38:56.423 SAME WAY WE COULD TALK ABOUT 03:38:56.490 --> 03:38:57.557 THE CHILD AND DEPENDENT CARE 03:38:57.624 --> 03:38:59.326 TAX CREDIT, AND YOU COULD TRY 03:38:59.392 --> 03:39:00.794 TO QUANTIFY HOW THAT MIGHT HELP 03:39:00.861 --> 03:39:02.229 OUR ECONOMY WHEN PARENTS CAN 03:39:02.295 --> 03:39:03.330 ACTUALLY YOU CAN HAVE TWO 03:39:03.396 --> 03:39:04.464 INCOMES AND BOTH PEOPLE CAN GO 03:39:04.531 --> 03:39:06.466 TO WORK HARD TO QUANTIFY THE 03:39:06.533 --> 03:39:07.634 EXACT AMOUNT OF THAT ECONOMIC 03:39:07.701 --> 03:39:09.336 IMPACT. BUT I KNOW IT'S THERE. 03:39:09.402 --> 03:39:10.871 AND SO I THINK THAT THAT'S WHAT 03:39:10.937 --> 03:39:12.472 I WOULD REALLY SAY IS, I THINK 03:39:12.539 --> 03:39:13.740 THE, THE DYNAMIC SCORING, ALL 03:39:13.807 --> 03:39:15.342 THE THINGS THAT YOU TALKED 03:39:15.408 --> 03:39:16.476 ABOUT, MR. CHAIR, I FULLY 03:39:16.543 --> 03:39:18.011 SUPPORT, BUT IT'S A FALSE 03:39:18.078 --> 03:39:19.479 NARRATIVE TO SUGGEST THAT THIS 03:39:19.546 --> 03:39:21.281 PROGRAM IS ANYTHING BUT A NET 03:39:21.348 --> 03:39:22.616 POSITIVE TO OUR COMMUNITIES AND 03:39:22.682 --> 03:39:23.783 TO CALIFORNIA AT LARGE. AND I 03:39:23.850 --> 03:39:26.052 THINK WE JUST HAVE TO COMBAT 03:39:26.119 --> 03:39:27.454 THAT, THAT MISINFORMATION THAT 03:39:27.521 --> 03:39:30.223 MIGHT EXIST. AND THE ONLY OTHER 03:39:30.290 --> 03:39:31.358 THING I'LL JUST CLOSE WITH IS 03:39:31.424 --> 03:39:33.193 THERE WAS SO MUCH GOOD STUFF 03:39:33.260 --> 03:39:34.761 DISCUSSED TODAY, VERY PROMISING 03:39:34.828 --> 03:39:35.996 THE POSSIBILITY OF A FEDERAL 03:39:36.062 --> 03:39:37.831 TAX CREDIT THAT COULD BE 03:39:37.898 --> 03:39:39.266 STACKABLE WITH THE CALIFORNIA 03:39:39.332 --> 03:39:41.434 CREDIT. BUT I REALLY JUST 03:39:41.501 --> 03:39:42.602 WANTED TO THANK YOU AGAIN, MR. 03:39:42.669 --> 03:39:43.703 CHAIR, AND OUR SPEAKER, FOR 03:39:43.770 --> 03:39:45.438 YOUR BOTH YOUR LEADERSHIP AND 03:39:45.505 --> 03:39:46.907 SAY THAT WE REALLY CAN'T REST 03:39:46.973 --> 03:39:49.342 ON OUR LAURELS PROGRAM. VERSION 03:39:49.409 --> 03:39:51.478 4.0 WAS A SUBSTANTIAL 03:39:51.545 --> 03:39:52.579 IMPROVEMENT OVER THE STATUS QUO. 03:39:52.646 --> 03:39:54.080 BUT WE HAVE TO BE TALKING, IN 03:39:54.147 --> 03:39:55.815 MY HUMBLE OPINION, ABOUT 03:39:55.882 --> 03:39:57.617 LIFTING THE CAP. WE HAVE TO BE 03:39:57.684 --> 03:39:59.753 TALKING ABOUT EXTENDING OR 03:39:59.819 --> 03:40:01.221 PERHAPS EVEN ELIMINATING THE 03:40:01.288 --> 03:40:02.689 SUNSET ALTOGETHER. REALLY 03:40:02.756 --> 03:40:04.124 TAKING A HARD LOOK AT ABOVE THE 03:40:04.190 --> 03:40:06.059 LINE. I THINK ALL OF THAT HAS 03:40:06.126 --> 03:40:07.294 TO BE ON THE TABLE. AND YES, 03:40:07.360 --> 03:40:09.262 YOU KNOW, TO ONE OF THE EARLIER 03:40:09.329 --> 03:40:11.031 PANELS, I THINK THAT WHEN YOU 03:40:11.097 --> 03:40:12.098 TALK ABOUT EVEN THOUGH THERE 03:40:12.165 --> 03:40:13.233 WAS SOME GREAT WORK DONE IN 03:40:13.300 --> 03:40:14.234 POST-PRODUCTION, AND THERE'S A 03:40:14.301 --> 03:40:16.002 BOATLOAD MORE TO DO THERE, 03:40:16.069 --> 03:40:17.070 THERE'S SO MANY THINGS WE 03:40:17.137 --> 03:40:18.238 DIDN'T TALK ABOUT TODAY. A LOT 03:40:18.305 --> 03:40:20.106 OF FOLKS IN MY DISTRICT ARE 03:40:20.173 --> 03:40:21.041 BEING EMPLOYED SHOOTING 03:40:21.107 --> 03:40:21.508 COMMERCIALS. WE'RE NOT 03:40:21.575 --> 03:40:22.309 INCENTIVIZING NEARLY ENOUGH OF 03:40:22.375 --> 03:40:24.010 THAT. GAME SHOWS ARE LEAVING 03:40:24.077 --> 03:40:25.111 THE STATE OF CALIFORNIA. AND I 03:40:25.178 --> 03:40:26.313 REALLY DO AGREE WITH MISS 03:40:26.379 --> 03:40:27.280 RYAN'S COMMENTS AT THE 03:40:27.347 --> 03:40:29.049 BEGINNING. WHY SHOULD WE BE 03:40:29.115 --> 03:40:30.050 PICKING AND CHOOSING? WHY 03:40:30.116 --> 03:40:31.117 SHOULD THERE BE WINNERS AND 03:40:31.184 --> 03:40:32.118 LOSERS? LET'S INCENTIVIZE ALL 03:40:32.185 --> 03:40:34.020 OF IT TO STAY. SO I LOOK 03:40:34.087 --> 03:40:35.155 FORWARD TO WORKING WITH ALL OF 03:40:35.221 --> 03:40:36.289 YOU TO DO THAT. REALLY 03:40:36.356 --> 03:40:37.324 APPRECIATE ALL THE EXPERTISE 03:40:37.390 --> 03:40:39.125 AND THE PASSION THAT WAS HERE 03:40:39.192 --> 03:40:41.061 TODAY, AND LET'S GET IT DONE IN 03:40:41.127 --> 03:40:42.162 2027. THANK YOU, MR. CHAIR. 03:40:42.228 --> 03:40:50.203 THANK YOU. MR. YOU KNOW, I, I'M 03:40:50.270 --> 03:40:52.706 SO GRATEFUL TO TO HEAR FROM 03:40:52.772 --> 03:40:54.140 EVERYONE TODAY AND TO HAVE THIS 03:40:54.207 --> 03:40:57.010 CONVERSATION. I THINK WE'VE 03:40:57.077 --> 03:41:00.280 SEEN AND I, YOU KNOW, TO TO MY 03:41:00.347 --> 03:41:01.314 COLLEAGUE, ASSEMBLY MEMBER 03:41:01.381 --> 03:41:03.750 SCHULTZ COMMENT, WE SEE IT IN 03:41:03.817 --> 03:41:05.652 OUR COMMUNITY. WE KNOW IF 03:41:05.719 --> 03:41:08.955 PEOPLE ARE WORKING OR NOT. AND, 03:41:09.022 --> 03:41:11.424 YOU KNOW, ONE STUDIO THAT I 03:41:11.491 --> 03:41:14.694 SPOKE TO HAS HALF THE NUMBER OF 03:41:14.761 --> 03:41:16.062 PEOPLE THEY HAD WORKING FOR 03:41:16.129 --> 03:41:20.400 THEM JUST A COUPLE OF YEARS AGO. 03:41:20.467 --> 03:41:22.535 AND, YOU KNOW, THE KIND OF 03:41:22.602 --> 03:41:24.704 IMPACT IN OUR COMMUNITY, AGAIN, 03:41:24.771 --> 03:41:26.873 YOU KNOW, THE STORY THAT WAS 03:41:26.940 --> 03:41:29.376 DISCUSSED EARLIER ABOUT THE THE 03:41:29.442 --> 03:41:31.177 GRAY'S ANATOMY SPIN OFF, THAT 03:41:31.244 --> 03:41:32.345 COULD HAVE BEEN YEARS OF WORK 03:41:32.412 --> 03:41:34.481 FOR PEOPLE IN MY COMMUNITY. 03:41:34.547 --> 03:41:36.216 YEARS, YEARS OF WORK. OH MY 03:41:36.282 --> 03:41:39.886 GOSH, IT'S JUST, IT'S REALLY, 03:41:39.953 --> 03:41:41.721 REALLY PAINFUL TO THINK ABOUT 03:41:41.788 --> 03:41:42.722 MISSING OUT ON THOSE 03:41:42.789 --> 03:41:44.891 OPPORTUNITIES FOR OUR COMMUNITY 03:41:44.958 --> 03:41:46.092 WHEN THEY'RE REALLY NEEDED. 03:41:46.159 --> 03:41:47.761 RIGHT NOW, PEOPLE ARE 03:41:47.827 --> 03:41:52.799 STRUGGLING AND THIS IS THIS IS 03:41:52.866 --> 03:41:55.168 NOT ONLY A CRITICAL INDUSTRY 03:41:55.235 --> 03:41:57.470 FOR WORKERS IN OUR COMMUNITY 03:41:57.537 --> 03:42:01.474 AND THE CREATIVE, YOU KNOW, THE 03:42:01.541 --> 03:42:03.209 CREATIVE ECONOMY AND THE 03:42:03.276 --> 03:42:06.846 CREATIVE IDENTITY OF OUR 03:42:06.913 --> 03:42:09.015 COMMUNITY. IT'S OUR HISTORY. 03:42:09.082 --> 03:42:11.184 IT'S, IT'S TIED TO LOS ANGELES 03:42:11.251 --> 03:42:14.754 AND SO MANY DIFFERENT WAYS. AND, 03:42:14.821 --> 03:42:16.956 AND, AND IT IS WHY PEOPLE COME 03:42:17.023 --> 03:42:20.527 HERE. IT IS WHY PEOPLE VISIT 03:42:20.593 --> 03:42:23.763 HERE AND GO TO DIFFERENT 03:42:23.830 --> 03:42:25.532 LOCATIONS. MY KID AND I JUST 03:42:25.598 --> 03:42:28.101 TOOK A VACATION LAST SUMMER, 03:42:28.168 --> 03:42:30.303 AND WE SPECIFICALLY WENT TO 03:42:30.370 --> 03:42:31.438 SOME LOCATIONS WHERE THINGS 03:42:31.504 --> 03:42:33.673 WERE FILMED. AND, AND THAT IS 03:42:33.740 --> 03:42:38.478 HOW WE CHOSE PLACES TO GO. AND 03:42:38.545 --> 03:42:41.781 IT'S, IT TRULY IS, YOU KNOW, 03:42:41.848 --> 03:42:43.583 SOMETHING THAT WE HAVE TO 03:42:43.650 --> 03:42:45.051 FIGURE OUT. AND I THINK WE HAVE 03:42:45.118 --> 03:42:46.786 TO HAVE THESE HARD 03:42:46.853 --> 03:42:48.655 CONVERSATIONS OF HOW ARE WE 03:42:48.722 --> 03:42:50.090 GOING TO FIGURE OUT A VALUE 03:42:50.156 --> 03:42:51.524 ATTACHED TO THIS? WHAT DO WE 03:42:51.591 --> 03:42:53.293 WANT TO DO AROUND THE CAP AND 03:42:53.359 --> 03:42:55.095 THE SUNSET? HOW DO WE MAKE THIS 03:42:55.161 --> 03:42:56.329 MORE RELIABLE AND SOMETHING 03:42:56.396 --> 03:42:58.364 THAT PEOPLE CAN DEPEND ON AND 03:42:58.431 --> 03:43:00.967 PLAN FOR? BECAUSE WHEN YOU'RE, 03:43:01.034 --> 03:43:02.268 YOU KNOW, PLANNING SOMETHING 03:43:02.335 --> 03:43:04.537 THAT COULD BE RUNNING YEARS OUT, 03:43:04.604 --> 03:43:06.973 YOU CAN'T BE THINKING ABOUT IF 03:43:07.040 --> 03:43:07.741 SOMETHING'S GOING TO BE THERE 03:43:07.807 --> 03:43:09.909 FOR YOU IN A YEAR OR TWO THAT 03:43:09.976 --> 03:43:11.644 YOU THAT YOU NEED TO MAKE IT 03:43:11.711 --> 03:43:16.382 WORK. SO, YOU KNOW, I THINK THE 03:43:16.449 --> 03:43:18.485 FOLKS WHO CAME HERE TODAY, AND 03:43:18.551 --> 03:43:19.652 THERE'S A NUMBER OF US FROM 03:43:19.719 --> 03:43:22.088 THIS AREA VERY READY TO ROLL UP 03:43:22.155 --> 03:43:23.289 OUR SLEEVES AND MAKE SURE THAT 03:43:23.356 --> 03:43:25.125 WE FIND THE RIGHT BALANCE FOR 03:43:25.191 --> 03:43:28.194 THIS AND THAT THIS IS AN 03:43:28.261 --> 03:43:29.996 INVESTMENT THAT OUR STATE 03:43:30.063 --> 03:43:32.932 CONTINUES TO MAKE AND, AND LOOK 03:43:32.999 --> 03:43:34.334 FORWARD TO WORKING IN 03:43:34.400 --> 03:43:36.469 PARTNERSHIP THAT ALSO, YOU KNOW, 03:43:36.536 --> 03:43:38.271 PEOPLE CHOOSE NOT TO QUOTE 03:43:38.338 --> 03:43:40.807 GRAY'S ANATOMY, BUT CHOOSE US, 03:43:40.874 --> 03:43:43.676 CHOOSE US HERE IN LA AND 03:43:43.743 --> 03:43:46.946 CALIFORNIA AND MAKE SURE THAT 03:43:47.013 --> 03:43:48.348 MAKE SURE THAT WE CAN, YOU KNOW, 03:43:48.414 --> 03:43:50.183 BE SUCCESSFUL TOGETHER. SO I'M 03:43:50.250 --> 03:43:51.618 LOOKING FORWARD TO THIS WORK 03:43:51.684 --> 03:43:53.853 AND WHAT WE CAN DO IN 2027. 03:43:53.920 --> 03:43:57.090 THANK YOU, THANK YOU. SO I WANT 03:43:57.157 --> 03:43:58.992 TO THANK ALL OF THE PANELISTS 03:43:59.058 --> 03:44:00.226 TODAY FOR SHARING THEIR 03:44:00.293 --> 03:44:01.728 EXPERTISE AND PERSPECTIVES. AND 03:44:01.795 --> 03:44:03.129 OBVIOUSLY, TO MY COLLEAGUES 03:44:03.196 --> 03:44:04.631 HERE, YOU KNOW, THE FOLKS THAT 03:44:04.697 --> 03:44:05.865 ARE UP HERE TODAY HAVE REALLY 03:44:05.932 --> 03:44:07.700 BEEN IN THIS FIGHT TO MAKE SURE 03:44:07.767 --> 03:44:10.670 THAT WE'RE PRESERVING AND, AND, 03:44:10.737 --> 03:44:14.340 AND IMPROVING THE ENVIRONMENT 03:44:14.407 --> 03:44:15.375 IN WHICH THE FILM AND 03:44:15.441 --> 03:44:16.876 TELEVISION TAX CREDIT, THE FILM 03:44:16.943 --> 03:44:18.611 AND TELEVISION INDUSTRY 03:44:18.678 --> 03:44:19.712 CONTRIBUTES TO THE STATE OF 03:44:19.779 --> 03:44:21.114 CALIFORNIA AND OUR WORKERS. I 03:44:21.181 --> 03:44:22.015 ALSO WANT TO THANK THE 03:44:22.081 --> 03:44:23.316 TELEVISION ACADEMY FOR 03:44:23.383 --> 03:44:24.384 GRACIOUSLY HOSTING US. AND 03:44:24.450 --> 03:44:26.586 AGAIN, SPEAKER RIVAS, AND I 03:44:26.653 --> 03:44:27.720 ALSO WANT TO THANK GOVERNOR 03:44:27.787 --> 03:44:29.389 NEWSOM AND THE SENATE PRESIDENT, 03:44:29.455 --> 03:44:31.558 PRO TEM LIMÓN, FOR THEIR 03:44:31.624 --> 03:44:32.659 LEADERSHIP AND COMMITMENT TO 03:44:32.725 --> 03:44:33.726 STRENGTHENING OUR FILM AND 03:44:33.793 --> 03:44:35.862 TELEVISION INDUSTRY. YOU KNOW, 03:44:35.929 --> 03:44:37.697 TODAY'S DISCUSSION REINFORCES 03:44:37.764 --> 03:44:39.899 WHY THIS COMMITTEE'S WORK IS SO 03:44:39.966 --> 03:44:41.301 IMPORTANT. CALIFORNIA'S 03:44:41.367 --> 03:44:42.268 LEADERSHIP IN FILM AND 03:44:42.335 --> 03:44:43.803 TELEVISION IS AN EXTRAORDINARY 03:44:43.870 --> 03:44:45.638 ASSET, BUT MAINTAINING THAT 03:44:45.705 --> 03:44:46.306 LEADERSHIP WILL REQUIRE 03:44:46.372 --> 03:44:48.141 CONTINUED INVESTMENT, 03:44:48.208 --> 03:44:49.242 INNOVATION AND A WILLINGNESS TO 03:44:49.309 --> 03:44:50.276 CONFRONT THE CHALLENGES THAT 03:44:50.343 --> 03:44:51.744 IT'S FACING THIS INDUSTRY. 03:44:51.811 --> 03:44:52.478 WE'VE HEARD ABOUT THE 03:44:52.545 --> 03:44:53.546 IMPORTANCE OF THE FILM AND 03:44:53.613 --> 03:44:54.614 TELEVISION INDUSTRY TO OUR 03:44:54.681 --> 03:44:56.015 STATE'S ECONOMY, THE PRESSURES 03:44:56.082 --> 03:44:57.684 FACING WORKERS AND BUSINESSES, 03:44:57.750 --> 03:44:58.985 AND THE OPPORTUNITIES WE HAVE 03:44:59.052 --> 03:45:01.421 TO STRENGTHEN THIS PROGRAM'S 03:45:01.487 --> 03:45:02.288 COMPETITIVENESS. AND WHILE 03:45:02.355 --> 03:45:03.656 WE'VE MADE SIGNIFICANT PROGRESS 03:45:03.723 --> 03:45:04.657 THROUGH THE EXPANSION OF THE 03:45:04.724 --> 03:45:06.159 FILM AND TELEVISION TAX CREDIT 03:45:06.226 --> 03:45:08.661 LAST YEAR AND THE PASSAGE OF SB 03:45:08.728 --> 03:45:10.129 186, WE KNOW THAT OUR WORK IS 03:45:10.196 --> 03:45:11.898 FAR FROM FINISHED. WE NEED TO 03:45:11.965 --> 03:45:13.333 THINK BEYOND A SINGLE BILL OR 03:45:13.399 --> 03:45:14.801 TAX CREDIT, AND DEVELOP A 03:45:14.868 --> 03:45:15.869 COMPREHENSIVE STRATEGY TO 03:45:15.935 --> 03:45:17.370 ENSURE THAT CALIFORNIA REMAINS 03:45:17.437 --> 03:45:19.239 THE BEST PLACE IN THE WORLD TO 03:45:19.305 --> 03:45:20.907 CREATE, PRODUCE AND INNOVATE. 03:45:20.974 --> 03:45:22.709 AS WE LOOK TOWARDS THE NEXT 03:45:22.775 --> 03:45:24.844 LEGISLATIVE SESSION, WE INTEND 03:45:24.911 --> 03:45:26.312 TOGETHER TO CONTINUE WORKING TO 03:45:26.379 --> 03:45:27.747 ADDRESS THE REMAINING IMPACTS 03:45:27.814 --> 03:45:29.582 OF THE CORPORATE TAX CREDIT CAP 03:45:29.649 --> 03:45:31.684 AND IDENTIFY ADDITIONAL 03:45:31.751 --> 03:45:32.485 OPPORTUNITIES TO STRENGTHEN THE 03:45:32.552 --> 03:45:34.554 FILM AND TELEVISION TAX CREDIT 03:45:34.621 --> 03:45:36.723 PROGRAM. WE NEED TO EVALUATE 03:45:36.789 --> 03:45:38.358 THE THINGS THAT ARE ELIGIBLE. 03:45:38.424 --> 03:45:39.659 YOU KNOW, THERE ARE MANY KINDS 03:45:39.726 --> 03:45:40.760 OF PROGRAMS THAT ARE NOT EVEN 03:45:40.827 --> 03:45:42.595 PART OF THE PROGRAM NOW, AND 03:45:42.662 --> 03:45:43.696 WE'RE LOSING THEM TO OTHER 03:45:43.763 --> 03:45:46.132 STATES. WE NEED TO REEVALUATE 03:45:46.199 --> 03:45:47.901 ABOVE THE LINE. THERE ARE MANY. 03:45:47.967 --> 03:45:50.837 THOSE EXPENDITURES ARE, YOU 03:45:50.904 --> 03:45:52.572 KNOW, WE OBVIOUSLY HAVE TO DO 03:45:52.639 --> 03:45:54.040 THAT IN A THOUGHTFUL WAY. SO 03:45:54.107 --> 03:45:55.808 IT'S NOT, YOU KNOW, PICKING UP 03:45:55.875 --> 03:45:57.977 EXECUTIVE COMPENSATION, BUT WE 03:45:58.044 --> 03:46:00.146 NEED TO MAKE SURE THAT THE THAT 03:46:00.213 --> 03:46:02.315 THE ACTORS AND ACTRESSES AND 03:46:02.382 --> 03:46:03.616 OTHERS THAT ARE ABOVE THE LINE, 03:46:03.683 --> 03:46:05.018 THAT ARE THAT ARE DEPENDENT ON 03:46:05.084 --> 03:46:06.419 THIS PROGRAM, THAT WE ACTUALLY 03:46:06.486 --> 03:46:07.987 ARE DOING THIS IN A WAY THAT'S 03:46:08.054 --> 03:46:09.022 COMPETITIVE WITH OTHER STATES. 03:46:09.088 --> 03:46:10.790 WE NEED TO THINK ABOUT RAISING 03:46:10.857 --> 03:46:11.958 OR ELIMINATING THE CAP. WE NEED 03:46:12.025 --> 03:46:13.793 TO ABOUT WE NEED TO CONTINUE 03:46:13.860 --> 03:46:15.595 FIGURING OUT HOW WE STRENGTHEN 03:46:15.662 --> 03:46:17.063 POST-PRODUCTION. UNDER ASSEMBLY 03:46:17.130 --> 03:46:19.299 MEMBER SCHULZ LEADERSHIP. AND 03:46:19.365 --> 03:46:20.700 WE NEED TO FOCUS ON HOW WE 03:46:20.767 --> 03:46:22.602 SCORE THIS PROGRAM TO MAKE SURE 03:46:22.669 --> 03:46:24.904 THAT WHAT WE ALL KNOW IS 03:46:24.971 --> 03:46:26.439 ACTUALLY REFLECTED IN OUR 03:46:26.506 --> 03:46:28.942 BUDGETARY DECISIONS. SO WITH 03:46:29.008 --> 03:46:30.610 THAT, I LOOK FORWARD TO WORKING 03:46:30.677 --> 03:46:31.577 WITH OUR COLLEAGUES, THE 03:46:31.644 --> 03:46:32.946 GOVERNOR'S, THE NEW 03:46:33.012 --> 03:46:33.913 ADMINISTRATION, INDUSTRY 03:46:33.980 --> 03:46:35.815 LEADERS, OUR LABOR PARTNERS AND 03:46:35.882 --> 03:46:36.549 CREATIVE PROFESSIONALS TO TURN 03:46:36.616 --> 03:46:38.651 THE IDEAS DISCUSSED TODAY INTO 03:46:38.718 --> 03:46:40.486 MEANINGFUL ACTION. CALIFORNIA 03:46:40.553 --> 03:46:41.621 BUILT ITS LEADERSHIP IN FILM 03:46:41.688 --> 03:46:43.289 AND TELEVISION THROUGH 03:46:43.356 --> 03:46:44.824 GENERATIONS OF EXTRAORDINARY 03:46:44.891 --> 03:46:46.159 TALENT, HARD WORK, AND 03:46:46.225 --> 03:46:47.660 INNOVATION. OUR RESPONSIBILITY 03:46:47.727 --> 03:46:49.429 NOW IS TO ENSURE THAT THE NEXT 03:46:49.495 --> 03:46:50.563 GENERATION HAS THOSE SAME 03:46:50.630 --> 03:46:51.931 OPPORTUNITIES RIGHT HERE IN 03:46:51.998 --> 03:46:53.399 CALIFORNIA. SO I WANT TO THANK 03:46:53.466 --> 03:46:55.168 EVERYONE WHO PARTICIPATED TODAY. 03:46:55.234 --> 03:46:56.502 I LOOK FORWARD TO CONTINUING 03:46:56.569 --> 03:46:58.438 THIS IMPORTANT WORK. NOW WE ARE 03:46:58.504 --> 03:47:00.940 GOING TO TURN TO PUBLIC COMMENT. 03:47:01.007 --> 03:47:02.742 I'M GOING TO ASK PEOPLE THAT 03:47:02.809 --> 03:47:04.577 WANT TO. CAN WE GET EVERYONE TO 03:47:04.644 --> 03:47:06.379 LINE UP OVER HERE ALONG THIS 03:47:06.446 --> 03:47:07.513 WALL THAT WOULD LIKE TO SAY 03:47:07.580 --> 03:47:08.648 SOMETHING, AND THEN DEPENDING 03:47:08.715 --> 03:47:10.383 ON HOW MANY PEOPLE ARE HERE, 03:47:10.450 --> 03:47:11.484 WE'LL DETERMINE HOW MUCH TIME 03:47:11.551 --> 03:47:13.853 WE CAN ALLOCATE. I WANT TO NOTE 03:47:13.920 --> 03:47:15.355 THAT THIS HEARING HAS BEEN LIVE 03:47:15.421 --> 03:47:16.489 STREAMED AND WILL BE ARCHIVED 03:47:16.556 --> 03:47:18.624 FOR VIEWING PURPOSES ON THE 03:47:18.691 --> 03:47:20.426 CALIFORNIA ASSEMBLY WEBSITE. 03:47:20.493 --> 03:47:22.228 THE AGENDA AND SUPPLEMENTAL 03:47:22.295 --> 03:47:23.663 MATERIALS FOR THE HEARING ARE 03:47:23.730 --> 03:47:25.798 AVAILABLE ON THAT WEBSITE, AND 03:47:25.865 --> 03:47:27.967 YOU CAN ALSO SUBMIT WRITTEN 03:47:28.034 --> 03:47:29.035 TESTIMONY TO STAFF FOLLOWING 03:47:29.102 --> 03:47:30.837 THE HEARING. AND PLEASE GO 03:47:30.903 --> 03:47:33.106 AHEAD AND JUST CONTACT MY STAFF 03:47:33.172 --> 03:47:35.575 IN THE CAPITOL. LET'S SEE HOW 03:47:35.641 --> 03:47:37.310 MANY. LET'S SEE IF WE CAN GET 03:47:37.377 --> 03:47:39.245 EVERYONE JUST TO LINE UP ON THE 03:47:39.312 --> 03:47:42.215 STAIRS HERE. WHO WANTS TO MAKE 03:47:42.281 --> 03:47:55.962 A COMMENT? GREAT. I THINK WE'VE 03:47:56.029 --> 03:47:57.463 GOT SOME FOLKS COMING FROM THIS 03:47:57.530 --> 03:47:59.365 SIDE. SO LET ME JUST WAIT A 03:47:59.432 --> 03:48:01.567 MINUTE JUST TO GET A SENSE. 03:48:01.634 --> 03:48:03.302 OKAY. THAT'S IT. OKAY, LET'S GO 03:48:03.369 --> 03:48:04.570 AHEAD. COME A COMMENT. WE'LL 03:48:04.637 --> 03:48:07.240 GIVE EVERYONE ONE MINUTE. MY 03:48:07.306 --> 03:48:08.608 NAME IS MY NAME IS BRIAN 03:48:08.674 --> 03:48:10.476 RALSTON. I'M A FILM COMPOSER 03:48:10.543 --> 03:48:11.844 HERE IN LOS ANGELES AND AN 03:48:11.911 --> 03:48:13.379 INDEPENDENT FILM PRODUCER. WE 03:48:13.446 --> 03:48:14.747 TALK ABOUT THE DOWNSTREAM 03:48:14.814 --> 03:48:16.115 EFFECTS, THE COST EFFECTIVENESS 03:48:16.182 --> 03:48:18.418 OF THESE REBATES. THERE'S ALSO 03:48:18.484 --> 03:48:20.153 AN EFFECT OF JUST THE 03:48:20.219 --> 03:48:21.220 AFFORDABILITY OF CALIFORNIA. 03:48:21.287 --> 03:48:25.591 IT'S IMPACTING UNION CONTRACTS. 03:48:25.658 --> 03:48:27.693 THEY ARE HIGH BECAUSE THEY 03:48:27.760 --> 03:48:29.896 REFLECT THE COST OF LIVING HERE 03:48:29.962 --> 03:48:31.330 AND THE COST OF DOING BUSINESS 03:48:31.397 --> 03:48:33.099 HERE. YOU KNOW, FOOD PRICES GO 03:48:33.166 --> 03:48:35.334 UP, OUR CATERING COSTS GO UP. 03:48:35.401 --> 03:48:37.837 YOU KNOW, GAS PRICES GO UP FOR 03:48:37.904 --> 03:48:39.272 WHATEVER THOSE REASONS ARE. 03:48:39.338 --> 03:48:40.339 TRANSPORTATION PRICES GO UP, 03:48:40.406 --> 03:48:41.774 YOU KNOW, GENERATORS COSTS GO 03:48:41.841 --> 03:48:43.609 LIKE EVERYTHING GOES UP. SO 03:48:43.676 --> 03:48:46.212 IT'S NOT JUST WHAT THE REBATES 03:48:46.279 --> 03:48:48.614 CAN DO TO OFFSET THAT, BUT IT'S 03:48:48.681 --> 03:48:50.817 ALSO EVERY OTHER LEGISLATION WE 03:48:50.883 --> 03:48:52.919 DO THAT INCREASES COSTS TO THE 03:48:52.985 --> 03:48:54.020 AFFORDABILITY OF CALIFORNIA, 03:48:54.087 --> 03:48:56.556 CHIPS AWAY AT MAKING THIS A 03:48:56.622 --> 03:48:58.057 PLACE THAT WE CAN DO FILMS. I 03:48:58.124 --> 03:48:59.826 HAD A LINE PRODUCER DO OUT A 03:48:59.892 --> 03:49:01.127 BUDGET OF THE FILM. THEY REALLY 03:49:01.194 --> 03:49:02.762 WANT TO SHOOT IN CALIFORNIA, 03:49:02.829 --> 03:49:05.331 AND IT'S GOING TO COST BETWEEN 03:49:05.398 --> 03:49:06.566 11 AND $12 MILLION. AND THEY'RE 03:49:06.632 --> 03:49:08.334 LIKE, YOU KNOW, IF WE GO DO 03:49:08.401 --> 03:49:10.303 THIS IN MEXICO, IF WE DO IT IN 03:49:10.369 --> 03:49:12.271 NEW MEXICO, WE CAN DO THIS FOR 03:49:12.338 --> 03:49:14.273 ABOUT 5 TO 6. AND SO THOSE ARE 03:49:14.340 --> 03:49:16.242 THE THINGS THAT WE HAVE TO DEAL 03:49:16.309 --> 03:49:17.410 WITH. AND THE LAST THING I'LL 03:49:17.477 --> 03:49:19.278 LEAVE YOU WITH IS I REALLY, AS 03:49:19.345 --> 03:49:20.513 WE LOOK AT JOB SERVICES RACE 03:49:20.580 --> 03:49:22.348 HERE ON WAYS TO CALCULATE THESE 03:49:22.415 --> 03:49:23.216 DYNAMIC QUALIFICATION FIGURES, 03:49:23.282 --> 03:49:24.350 HOW MANY JOBS, DON'T FORGET 03:49:24.417 --> 03:49:25.384 ABOUT THE INDEPENDENT FILMS AND 03:49:25.451 --> 03:49:26.419 THE INDEPENDENT PRODUCTIONS. 03:49:26.486 --> 03:49:27.420 THEY'RE GOING TO HAVE SMALLER 03:49:27.487 --> 03:49:29.188 CREWS BY THE NATURE OF THEIR 03:49:29.255 --> 03:49:30.189 SMALLER BUDGETS. BUT THESE 03:49:30.256 --> 03:49:32.225 FILMS THAT ARE IN THAT 5 TO $10 03:49:32.291 --> 03:49:33.259 MILLION RANGE, THESE ARE NOT 03:49:33.326 --> 03:49:34.393 THE STUDIO MARVEL FILMS THAT 03:49:34.460 --> 03:49:35.394 WE'RE TALKING ABOUT, AND 03:49:35.461 --> 03:49:36.496 THEY'RE GOING TO HAVE SMALLER 03:49:36.562 --> 03:49:37.997 CREWS. THEY'RE PROBABLY GOING 03:49:38.064 --> 03:49:39.532 TO LOSE OUT ON A LOT OF THESE 03:49:39.599 --> 03:49:41.400 THINGS THAT LOOK AT A JOB 03:49:41.467 --> 03:49:42.468 SERVICES RATIO TO QUALIFY, 03:49:42.535 --> 03:49:43.503 BECAUSE THEY'RE GOING TO HAVE A 03:49:43.569 --> 03:49:45.304 MUCH SMALLER CREW. BUT THOSE 03:49:45.371 --> 03:49:46.472 ARE THE FILMMAKERS OF TOMORROW 03:49:46.539 --> 03:49:47.573 AND THE FUTURE PEOPLE THAT ARE 03:49:47.640 --> 03:49:49.509 GOING TO, IF WE GET THEM USED 03:49:49.575 --> 03:49:50.576 TO WORKING HERE AND LOVING 03:49:50.643 --> 03:49:52.378 WORKING HERE, WHEN THEY GET TO 03:49:52.445 --> 03:49:53.813 DO THE NEXT MARVEL AVENGERS 03:49:53.880 --> 03:49:55.348 MOVIE, THEY WILL WANT TO COME 03:49:55.414 --> 03:49:56.516 BACK HERE AND DO IT, BECAUSE 03:49:56.582 --> 03:49:57.517 THAT'S WHERE THAT'S WHAT 03:49:57.583 --> 03:49:58.551 THEY'VE LEARNED IS WHERE YOU 03:49:58.618 --> 03:50:00.453 MAKE FILMS. SO IF THERE'S A WAY 03:50:00.520 --> 03:50:02.822 THAT WE CAN INCENTIVIZE, OR 03:50:02.889 --> 03:50:04.423 EVEN IF WE'RE GOING TO BABY 03:50:04.490 --> 03:50:05.658 STEP TO AN UNCAPPED THING, 03:50:05.725 --> 03:50:07.793 UNCAPPED BELOW A CERTAIN BUDGET 03:50:07.860 --> 03:50:09.962 LEVEL. SO THESE INDEPENDENT 03:50:10.029 --> 03:50:10.997 PRODUCTIONS THAT ARE GOING TO 03:50:11.063 --> 03:50:12.198 TAKE A SMALLER AMOUNT ANYWAY, 03:50:12.265 --> 03:50:13.966 BY THE NATURE OF THEIR BUDGETS, 03:50:14.033 --> 03:50:16.469 CAN JUST FREELY BE INCENTIVIZED 03:50:16.536 --> 03:50:18.271 TO ALSO WORK HERE. THANK YOU. 03:50:18.337 --> 03:50:19.472 COULD YOU, FOR THE RECORD, JUST 03:50:19.539 --> 03:50:21.240 STATE YOUR NAME AND THE CITY 03:50:21.307 --> 03:50:22.975 THAT YOU LIVE IN? SURE. BRIAN 03:50:23.042 --> 03:50:25.378 RALSTON, RALSTON, AND LOS 03:50:25.444 --> 03:50:26.445 ANGELES, CALIFORNIA, THANK YOU 03:50:26.512 --> 03:50:29.982 VERY MUCH. NEXT NAME AND WHERE 03:50:30.049 --> 03:50:31.250 YOU LIVE AND THEN YOUR COMMENT. 03:50:31.317 --> 03:50:33.052 HI, MY NAME IS MICHAEL ELTON. I 03:50:33.119 --> 03:50:34.620 LIVE IN LOS ANGELES. I PREPARED 03:50:34.687 --> 03:50:36.022 A LITTLE STATEMENT HERE. I'LL 03:50:36.088 --> 03:50:37.089 TRY TO GET THROUGH IT AS 03:50:37.156 --> 03:50:39.125 QUICKLY AS I CAN. SO I THOUGHT 03:50:39.192 --> 03:50:41.127 I WAS GOING TO BE A FLY ON THE 03:50:41.194 --> 03:50:43.029 WALL. SO, MR. CHAIR, MEMBERS OF 03:50:43.095 --> 03:50:44.163 THE COMMITTEE, FIRST, I WANT TO 03:50:44.230 --> 03:50:45.364 EXPRESS MY APPRECIATION FOR THE 03:50:45.431 --> 03:50:46.232 SIGNIFICANT STEPS YOU'VE 03:50:46.299 --> 03:50:47.800 ALREADY TAKEN TO STRENGTHEN 03:50:47.867 --> 03:50:48.467 CALIFORNIA'S CREATIVE 03:50:48.534 --> 03:50:49.669 INDUSTRIES, PARTICULARLY WITH 03:50:49.735 --> 03:50:51.771 THE EXPANSION OF THE FILM AND 03:50:51.837 --> 03:50:53.239 TELEVISION TAX CREDIT AND THE 03:50:53.306 --> 03:50:55.675 PASSAGE OF AB 2319. THESE ARE 03:50:55.741 --> 03:50:57.076 IMPORTANT ACCOMPLISHMENTS, AND 03:50:57.143 --> 03:50:58.644 I ENCOURAGE YOU TO BUILD UPON 03:50:58.711 --> 03:51:00.680 THEM BY REITERATING YOUR 03:51:00.746 --> 03:51:02.715 CLOSING REMARKS AND EMPHASIZING 03:51:02.782 --> 03:51:04.483 A MORE COMPREHENSIVE STRATEGY 03:51:04.550 --> 03:51:06.152 FOR CALIFORNIA'S ENTIRE 03:51:06.219 --> 03:51:07.920 CREATIVE ECONOMY. WHILE I 03:51:07.987 --> 03:51:09.722 RECOGNIZE THE SCOPE OF TODAY'S 03:51:09.789 --> 03:51:10.790 AGENDA, LIKE ASSEMBLYMEMBER 03:51:10.856 --> 03:51:12.024 SCHULTZ SAID IN HIS CLOSING 03:51:12.091 --> 03:51:13.292 REMARKS, THE CREATIVE ECONOMY 03:51:13.359 --> 03:51:15.094 EXTENDS BEYOND FILM AND 03:51:15.161 --> 03:51:18.397 TELEVISION TO MUSIC, ANIMATION, 03:51:18.464 --> 03:51:20.866 GAMING, ADVERTISING, DESIGN, 03:51:20.933 --> 03:51:22.702 DIGITAL MEDIA, PERFORMING ARTS, 03:51:22.768 --> 03:51:23.970 AND THE THOUSANDS AND THOUSANDS 03:51:24.036 --> 03:51:26.305 OF SMALL BUSINESSES AND SKILLED 03:51:26.372 --> 03:51:27.740 PROFESSIONALS SUPPORTING THESE 03:51:27.807 --> 03:51:29.208 INDUSTRIES. I ALSO SHARE YOUR 03:51:29.275 --> 03:51:30.610 SENTIMENT WHEN I SAY THAT THE 03:51:30.676 --> 03:51:32.812 URGENCY IS REAL. MR. MATT 03:51:32.878 --> 03:51:34.180 HORTON EARLIER SPOKE A BIT ON 03:51:34.247 --> 03:51:36.315 THE OTIS REPORT OF 26, AND 03:51:36.382 --> 03:51:38.184 ACCORDING TO THAT SAME REPORT, 03:51:38.251 --> 03:51:40.720 CALIFORNIA LOST APPROXIMATELY 03:51:40.786 --> 03:51:45.024 114,000 CREATIVE ECONOMY JOBS 03:51:45.091 --> 03:51:46.492 BETWEEN 2022 AND 2025. SO THE 03:51:46.559 --> 03:51:47.526 TESTIMONIES OF THE PANELS TODAY 03:51:47.593 --> 03:51:49.061 COULD SPEAK MUCH BETTER ON THE 03:51:49.128 --> 03:51:50.129 TAX INCENTIVE PROGRAMS THAN I 03:51:50.196 --> 03:51:52.198 EVER COULD. SO I WANT TO JUST 03:51:52.265 --> 03:51:54.033 CONCLUDE HERE BY JUST 03:51:54.100 --> 03:51:55.067 ENCOURAGING TO YOU TO LOOK 03:51:55.134 --> 03:51:57.303 BEYOND TAX INCENTIVES, LIKE 03:51:57.370 --> 03:51:59.005 REDUCING THE COST OF BUSINESSES, 03:51:59.071 --> 03:52:00.506 COST OF DOING BUSINESS IN 03:52:00.573 --> 03:52:02.675 CALIFORNIA, REDUCING PRODUCTION 03:52:02.742 --> 03:52:04.443 OVERHEAD WITH EXPLORING, 03:52:04.510 --> 03:52:05.544 STREAMLINING, PERMITTING, 03:52:05.611 --> 03:52:08.047 STANDARDIZING FEES, ELIMINATING 03:52:08.114 --> 03:52:09.815 DUPLICATIVE CHARGES, PROVIDE 03:52:09.882 --> 03:52:11.317 AFFORDABLE PARKING AND BASE 03:52:11.384 --> 03:52:15.154 CAMPS FOR US. AND SORRY AND 03:52:15.221 --> 03:52:20.960 SKILLED. SHOOT AND JUST 03:52:21.027 --> 03:52:22.695 REDUCING THE COST OF PRODUCTION. 03:52:22.762 --> 03:52:24.930 I WOULD ALSO ENCOURAGE TO 03:52:24.997 --> 03:52:25.965 STRENGTHEN EDUCATION AND 03:52:26.032 --> 03:52:26.666 TECHNICAL TRAINING AND 03:52:26.732 --> 03:52:29.168 WORKFORCE DEVELOPMENT. THERE'S 03:52:29.235 --> 03:52:30.002 ALREADY A FOUNDATION THROUGH 03:52:30.069 --> 03:52:31.704 THE FILM COMMISSION'S CAREER 03:52:31.771 --> 03:52:33.172 PATHWAYS TRAINING PROGRAM AND 03:52:33.239 --> 03:52:34.273 NEW YORK CITY'S MAIN AND NEW 03:52:34.340 --> 03:52:35.308 YORK POST-PRODUCTION PROGRAM, 03:52:35.374 --> 03:52:37.076 WHICH OFFERS ANOTHER MODEL 03:52:37.143 --> 03:52:38.377 COMBINING TECHNICAL EDUCATION 03:52:38.444 --> 03:52:40.012 WITH JOB PLACEMENT AND CAREER 03:52:40.079 --> 03:52:43.983 SUPPORT. I WOULD ALSO ENCOURAGE 03:52:44.050 --> 03:52:45.418 SUPPORTING SMALL CREATIVE 03:52:45.484 --> 03:52:47.219 BUSINESSES. I POINT TO THE LA 03:52:47.286 --> 03:52:48.621 COUNTY ENTERTAINMENT BUSINESS 03:52:48.688 --> 03:52:49.322 INTERRUPTION FUND, WHICH 03:52:49.388 --> 03:52:51.957 PROVIDED $4 MILLION TO 363 03:52:52.024 --> 03:52:54.760 SMALL BUSINESSES. AND FINALLY, 03:52:54.827 --> 03:52:56.162 TWO THINGS THAT I THINK ALSO 03:52:56.228 --> 03:52:58.030 NEED TO EMPHASIZE ARE 03:52:58.097 --> 03:52:59.065 FUNDAMENTAL FORCES CHANGING THE 03:52:59.131 --> 03:53:01.233 INDUSTRY, WHICH IS CORPORATE 03:53:01.300 --> 03:53:02.335 CONSOLIDATION AND GENERATIVE 03:53:02.401 --> 03:53:04.170 ARTIFICIAL INTELLIGENCE. THE 03:53:04.236 --> 03:53:05.938 ATTORNEY GENERAL'S RECENT 03:53:06.005 --> 03:53:07.673 PROPOSED PARAMOUNT WARNER 03:53:07.740 --> 03:53:09.542 BROTHERS SETTLEMENT, WHICH 03:53:09.608 --> 03:53:12.345 INCLUDED A $47.5 MILLION 03:53:12.411 --> 03:53:13.679 WORKFORCE FUND, DEMONSTRATES 03:53:13.746 --> 03:53:15.948 THE IMPORTANCE OF EXAMINING 03:53:16.015 --> 03:53:17.450 CONSOLIDATIONS, IMPACT ON 03:53:17.516 --> 03:53:18.851 WORKERS, COMPETITION AND 03:53:18.918 --> 03:53:20.686 CREATIVE OUTPUT. AND WHILE THE 03:53:20.753 --> 03:53:22.121 OTIS REPORT SAID THAT AI WASN'T 03:53:22.188 --> 03:53:24.290 A JOB LOSS, BUT IT WASN'T THE 03:53:24.357 --> 03:53:25.424 PRIMARY CAUSE OF EMPLOYMENT 03:53:25.491 --> 03:53:27.526 LOSS, IT'S STILL IMPACTING 03:53:27.593 --> 03:53:28.627 CREATIVE WORK AND RAISING 03:53:28.694 --> 03:53:30.062 SERIOUS QUESTIONS ABOUT 03:53:30.129 --> 03:53:31.831 INTELLECTUAL PROPERTY 03:53:31.897 --> 03:53:33.299 COMPENSATION AND FUTURE 03:53:33.366 --> 03:53:35.701 EMPLOYMENT. SO I JUST URGE THE 03:53:35.768 --> 03:53:36.769 COMMITTEE TO EXPLORE SOME OF 03:53:36.836 --> 03:53:40.106 THESE EXAMPLES AND CONSIDER A 03:53:40.172 --> 03:53:41.173 COORDINATED, STATEWIDE CREATIVE 03:53:41.240 --> 03:53:43.008 ECONOMY STRATEGY WITH 03:53:43.075 --> 03:53:44.343 MEASURABLE GOALS. AND THANK YOU. 03:53:44.410 --> 03:53:45.544 THANK YOU SO MUCH. THANK YOU. 03:53:45.611 --> 03:53:46.979 COULD YOU LEAVE YOUR CONTACT 03:53:47.046 --> 03:53:48.314 INFORMATION WITH MY STAFF AS 03:53:48.381 --> 03:53:49.448 OVER RIGHT OVER HERE. YEAH, 03:53:49.515 --> 03:53:50.616 SURE. THANK YOU. APPRECIATE IT. 03:53:50.683 --> 03:53:53.085 SO WE CAN FOLLOW UP NEXT. GOOD 03:53:53.152 --> 03:53:54.420 AFTERNOON. THANKS FOR HAVING ME. 03:53:54.487 --> 03:53:57.757 THIS, MR. ZUBER, MR. SCHULTZ AS 03:53:57.823 --> 03:53:59.925 SALVO. SORRY IF I GOT YOUR NAME 03:53:59.992 --> 03:54:01.861 WRONG. MY NAME IS JOHN ELLIS. I 03:54:01.927 --> 03:54:03.462 LIVE IN VALLEY GLEN. I'M THE 03:54:03.529 --> 03:54:05.698 BUSINESS MANAGER AT ITS LOCAL 03:54:05.765 --> 03:54:07.099 LADY REPRESENTING GRIPS, CRAFT 03:54:07.166 --> 03:54:08.868 SERVICE AND MEDICS. THE PERSON 03:54:08.934 --> 03:54:10.002 BEFORE ME MENTIONED THE 03:54:10.069 --> 03:54:11.604 CREATIVE ECONOMY. OUR INDUSTRY 03:54:11.670 --> 03:54:13.572 HELPED DRIVE THE CREATIVE 03:54:13.639 --> 03:54:15.040 ECONOMY. OUR INDUSTRY HELPS 03:54:15.107 --> 03:54:17.610 DRIVE TOURISM. I THINK IT'S 03:54:17.676 --> 03:54:19.044 IMPORTANT THAT WE LOOK AT THE 03:54:19.111 --> 03:54:21.514 ENTIRE ECOSYSTEM. OUR LAST 03:54:21.580 --> 03:54:23.082 PANEL WITH THE ANALYSTS, IT'S 03:54:23.149 --> 03:54:24.683 ALL ABOUT DOLLAR IN, DOLLAR OUT. 03:54:24.750 --> 03:54:26.719 I GET THAT FOR THE LÀ Þ. BUT IF 03:54:26.786 --> 03:54:28.687 WE CAN LOOK AT THE ECOSYSTEM AS 03:54:28.754 --> 03:54:32.658 A WHOLE AND ALSO ASSEMBLYMEMBER, 03:54:32.725 --> 03:54:34.093 SHE BROUGHT IT UP. WE'RE ASKING 03:54:34.160 --> 03:54:35.861 WHAT ABOUT SHOWS THAT ACTUALLY 03:54:35.928 --> 03:54:38.798 STATE WHAT'S THE IMPACT AND 03:54:38.864 --> 03:54:42.401 ALSO THE THE CONTRACTION OF THE 03:54:42.468 --> 03:54:43.202 INDUSTRY? WHAT'S THE IMPACT? 03:54:43.269 --> 03:54:45.304 HOW HAS IT HURT US? I THINK 03:54:45.371 --> 03:54:49.241 ALSO WILL HELP SUPPORT FOR OUR 03:54:49.308 --> 03:54:50.676 YOUR COLLEAGUES UP NORTH AS 03:54:50.743 --> 03:54:53.212 WELL TO SUPPORT THIS PROGRAM. I 03:54:53.279 --> 03:54:54.613 THINK IF WE LOOK AT THE ENTIRE 03:54:54.680 --> 03:54:56.782 ECOSYSTEM AND WHAT FILM AND 03:54:56.849 --> 03:54:57.516 TELEVISION AND THAT'S 03:54:57.583 --> 03:55:00.786 EVERYTHING. COMMERCIALS, POST 03:55:00.853 --> 03:55:02.188 ANIMATION, WHAT THAT DOES TO 03:55:02.254 --> 03:55:04.023 DRIVE THIS ECONOMY IN THE WHOLE 03:55:04.089 --> 03:55:05.191 STATE. I THINK IT'S IMPORTANT 03:55:05.257 --> 03:55:06.492 FOR YOUR COLLEAGUES TO KNOW, 03:55:06.559 --> 03:55:08.694 AND FOR THE PUBLIC TO RECOGNIZE 03:55:08.761 --> 03:55:10.796 THAT THE ECOSYSTEM OF FILM AND 03:55:10.863 --> 03:55:12.598 TELEVISION, OF PRODUCTION, HOW 03:55:12.665 --> 03:55:14.400 MUCH IT ACTUALLY HELPS THE 03:55:14.467 --> 03:55:15.668 ENTIRE STATE. THANK YOU FOR 03:55:15.734 --> 03:55:18.404 YOUR TIME. THANK YOU VERY MUCH. 03:55:18.471 --> 03:55:20.206 NEXT NAME AND CITY CHAIR AND 03:55:20.272 --> 03:55:22.374 MEMBERS, ALEX TORRES, FOR THE 03:55:22.441 --> 03:55:24.210 PURPOSES OF HEARING ON I HERE 03:55:24.276 --> 03:55:25.911 ON BEHALF OF PREDOMINANTLY TWO 03:55:25.978 --> 03:55:27.379 CLIENTS, THE CHULA VISTA 03:55:27.446 --> 03:55:28.180 ENTERTAINMENT COMPANY AND THE 03:55:28.247 --> 03:55:29.915 OUT OF ZONE COALITION, CHULA 03:55:29.982 --> 03:55:31.317 VISTA ENTERTAINMENT COMPANY IS 03:55:31.383 --> 03:55:32.451 DEVELOPING AN INDEPENDENT 03:55:32.518 --> 03:55:33.886 PRODUCTION HUB IN THE SAN DIEGO 03:55:33.953 --> 03:55:35.588 REGION. YOU HEARD ABOUT THE 03:55:35.654 --> 03:55:36.388 IMPORTANCE OF WORKFORCE 03:55:36.455 --> 03:55:37.256 DEVELOPMENT HERE, DEVELOPING 03:55:37.323 --> 03:55:38.924 THAT TALENT PIPELINE. IT WAS 03:55:38.991 --> 03:55:40.526 MENTIONED A LITTLE BIT ABOUT 03:55:40.593 --> 03:55:41.994 THE IMPORTANCE OF THE ECOSYSTEM. 03:55:42.061 --> 03:55:43.195 WITHOUT ROOTS, THAT ECOSYSTEM 03:55:43.262 --> 03:55:44.396 COULD NEVER TRULY THRIVE. AND 03:55:44.463 --> 03:55:47.600 SO DEVELOPING OUT OF ZONE 03:55:47.666 --> 03:55:48.667 PIPELINES LIKE THE CHULA VISTA 03:55:48.734 --> 03:55:50.069 PROJECT IS REALLY CRITICAL TO 03:55:50.135 --> 03:55:51.837 KEEPING THAT TALENT HERE AND 03:55:51.904 --> 03:55:53.272 DEVELOPING THOSE UP AND COMING 03:55:53.339 --> 03:55:54.707 ARTISTS AND BRINGING AND 03:55:54.773 --> 03:55:55.441 REDUCING THOSE BARRIERS TO 03:55:55.508 --> 03:55:58.043 ENTRY INTO THE INDUSTRY. I ALSO 03:55:58.110 --> 03:55:59.345 THE COMPANY ALSO CO-FOUNDED THE 03:55:59.411 --> 03:56:00.546 OUT OF ZONE COALITION. OUR ARE 03:56:00.613 --> 03:56:01.981 MORE THAN 40 MEMBERS INCLUDE 03:56:02.047 --> 03:56:03.749 CREATIVE PROFESSIONALS, ARTS 03:56:03.816 --> 03:56:05.918 ORGANIZATIONS, AND INDEPENDENT 03:56:05.985 --> 03:56:07.353 PRODUCERS FOCUSED ON GEOGRAPHIC 03:56:07.419 --> 03:56:08.654 EQUITY, WORKFORCE DEVELOPMENT. 03:56:08.721 --> 03:56:09.822 A LOT OF THE DISCUSSION POINTS 03:56:09.889 --> 03:56:12.057 YOU JUST HEARD, THE RECENT 03:56:12.124 --> 03:56:13.092 CONVERSATIONS ABOUT 03:56:13.158 --> 03:56:14.527 CONSOLIDATION, COMPETITION AND 03:56:14.593 --> 03:56:15.628 WORKFORCE PATHWAYS, I THINK 03:56:15.694 --> 03:56:17.363 OFFERS AN OPPORTUNITY TO GET 03:56:17.429 --> 03:56:19.632 EVERYBODY IN A ROOM. THE. THE 03:56:19.698 --> 03:56:20.699 STATEWIDE CREATIVE STRATEGY IS 03:56:20.766 --> 03:56:22.334 A IS A GREAT IDEA, FIGURING OUT 03:56:22.401 --> 03:56:23.536 HOW WE GET ALL STAKEHOLDERS 03:56:23.602 --> 03:56:25.437 TOGETHER TO IDENTIFY HOW WE 03:56:25.504 --> 03:56:26.805 MAKE THIS PROGRAM WORK. I THINK 03:56:26.872 --> 03:56:28.607 PLUS ONE ON A LOT OF DIFFERENT 03:56:28.674 --> 03:56:29.708 POINTS MADE ON MULTIPLE PANELS 03:56:29.775 --> 03:56:31.510 HERE TODAY. AS AN ASIDE. LASTLY, 03:56:31.577 --> 03:56:32.611 ON BEHALF OF THE NATIONAL 03:56:32.678 --> 03:56:33.612 INDEPENDENT VENUE ASSOCIATION 03:56:33.679 --> 03:56:34.580 OF CALIFORNIA, REPRESENTING 03:56:34.647 --> 03:56:36.815 OVER 650 INDEPENDENT MUSIC 03:56:36.882 --> 03:56:38.317 VENUES AND FESTIVAL PROMOTERS, 03:56:38.384 --> 03:56:39.785 WE LOVE THE CONVERSATION, THE 03:56:39.852 --> 03:56:41.520 COMPREHENSIVE CREATIVE ECONOMY 03:56:41.587 --> 03:56:42.988 CONVERSATION, PLUS ONE DÍAS. 03:56:43.055 --> 03:56:44.423 THEY DRIVE A LOT OF OUR LARGEST 03:56:44.490 --> 03:56:45.491 CALIFORNIA INDEPENDENT MUSIC 03:56:45.558 --> 03:56:46.625 FESTIVALS, SO LOOK FORWARD TO 03:56:46.692 --> 03:56:47.860 ALL THE CONVERSATIONS TO COME 03:56:47.927 --> 03:56:49.161 ON A CREATIVE STRATEGY. THANK 03:56:49.228 --> 03:56:50.796 YOU. THANK YOU FOR BEING HERE. 03:56:50.863 --> 03:56:52.031 IF YOU COULD LEAVE YOUR CONTACT 03:56:52.097 --> 03:56:53.699 INFORMATION WITH MY STAFF, I'D 03:56:53.766 --> 03:56:54.900 APPRECIATE IT. NEXT. HI. HI. 03:56:54.967 --> 03:56:56.869 NICE TO SEE YOU. MY NAME IS 03:56:56.936 --> 03:56:58.070 KAREN BAKER LANDERS. I'M A VICE 03:56:58.137 --> 03:56:59.505 PRESIDENT OF THE CALIFORNIA 03:56:59.572 --> 03:57:01.707 ALLIANCE AND ONE OF THE 03:57:01.774 --> 03:57:05.277 SPONSORS OF AB 2319, THE 03:57:05.344 --> 03:57:06.745 POST-PRODUCTION BILL. AND I 03:57:06.812 --> 03:57:08.847 JUST WANT TO THANK YOU ALL FOR 03:57:08.914 --> 03:57:10.316 BEING HERE. THIS IS SO 03:57:10.382 --> 03:57:12.384 IMPORTANT. ONE OF THE THINGS I 03:57:12.451 --> 03:57:14.286 WANTED TO TO TALK ABOUT TODAY 03:57:14.353 --> 03:57:15.721 WAS THE NEGATIVE NARRATIVE 03:57:15.788 --> 03:57:18.257 ABOUT CALIFORNIA AND CHANGING 03:57:18.324 --> 03:57:19.391 THAT, BECAUSE WE CAN GET THE 03:57:19.458 --> 03:57:23.228 TAX INCENTIVES, BUT THERE IS 03:57:23.295 --> 03:57:25.064 HONESTLY SUCH A MACHINE OUT 03:57:25.130 --> 03:57:29.068 THERE TRYING TO KEEP CALIFORNIA 03:57:29.134 --> 03:57:31.570 DOWN. AND BECAUSE AND I'VE SAID 03:57:31.637 --> 03:57:33.272 THIS BEFORE, IF THEY KNOW, IF 03:57:33.339 --> 03:57:35.541 WE GET IT RIGHT, THAT IT'S GAME 03:57:35.608 --> 03:57:38.010 ON FOR CALIFORNIA, WE WILL GET 03:57:38.077 --> 03:57:40.613 THE WORK BACK. THE TALENT'S 03:57:40.679 --> 03:57:45.217 HERE. THE IT'S A CREATIVE 03:57:45.284 --> 03:57:46.285 MENTALITY THAT WE HAVE HERE. 03:57:46.352 --> 03:57:48.120 IT'S A CREATIVE CULTURE. AND TO 03:57:48.187 --> 03:57:50.222 MAINTAIN THAT IS SO IMPORTANT. 03:57:50.289 --> 03:57:51.724 AND I DON'T KNOW HOW TO GO 03:57:51.790 --> 03:57:55.027 ABOUT CHANGING THE NEGATIVE 03:57:55.094 --> 03:57:56.028 NARRATIVE, BUT IT'S SO 03:57:56.095 --> 03:57:57.096 IMPORTANT BECAUSE I HAVE 03:57:57.162 --> 03:57:58.197 PRODUCERS, I'M A SUPERVISING 03:57:58.263 --> 03:58:01.433 SOUND DESIGNER. I AM HAVE 03:58:01.500 --> 03:58:02.868 PRODUCERS AND DIRECTORS ASKING 03:58:02.935 --> 03:58:05.070 ME ABOUT THESE INCENTIVES. ASK 03:58:05.137 --> 03:58:06.839 ME ABOUT THE POST INCENTIVE. 03:58:06.905 --> 03:58:08.974 WHEN IS IT GOING TO HAPPEN? 03:58:09.041 --> 03:58:10.109 THEY'RE IN THE QUEUE. THEY'RE 03:58:10.175 --> 03:58:11.543 WAITING TO DO THEIR FILMS HERE. 03:58:11.610 --> 03:58:14.513 THEY DON'T WANT TO GO AWAY. BUT 03:58:14.580 --> 03:58:16.448 THE OTHER THING I WANTED TO SAY 03:58:16.515 --> 03:58:17.516 WAS I'M SPEAKING AT THE 03:58:17.583 --> 03:58:19.785 AMERICAN FILM INSTITUTE TONIGHT. 03:58:19.852 --> 03:58:22.054 STUDENTS, AND I WANT TO BE ABLE 03:58:22.121 --> 03:58:23.389 TO TELL THEM THERE'S AN 03:58:23.455 --> 03:58:25.224 INDUSTRY HERE. THEY COME FROM 03:58:25.290 --> 03:58:27.359 ALL OVER TO GO TO THIS 03:58:27.426 --> 03:58:28.494 INSTITUTE. AND I WANT TO BE 03:58:28.560 --> 03:58:30.396 ABLE TO SAY, WE'RE FIGHTING FOR 03:58:30.462 --> 03:58:31.530 YOU, AND THAT WILL STAY HERE 03:58:31.597 --> 03:58:33.399 BECAUSE WE NEED THOSE VOICES IN 03:58:33.465 --> 03:58:35.601 THIS STATE. AND THAT WAS PRETTY 03:58:35.668 --> 03:58:36.735 MUCH IT. AND THANK YOU BOTH. 03:58:36.802 --> 03:58:38.504 BUT THANK YOU, ESPECIALLY TO 03:58:38.570 --> 03:58:40.706 ASSEMBLYMEMBER SCHULTZ FOR 03:58:40.773 --> 03:58:41.907 STANDING BY US AND FIGHTING SO 03:58:41.974 --> 03:58:43.942 HARD. THANK YOU FOR BEING HERE 03:58:44.009 --> 03:58:46.812 TODAY. NEXT. NICE TO SEE YOU. 03:58:46.879 --> 03:58:48.480 NICE TO SEE YOU AS WELL. GOOD 03:58:48.547 --> 03:58:49.715 AFTERNOON. MY NAME IS MALACHI 03:58:49.782 --> 03:58:51.116 SIMMONS. I'M A RESIDENT OF LOS 03:58:51.183 --> 03:58:52.651 ANGELES. I'M THE VICE PRESIDENT 03:58:52.718 --> 03:58:55.754 OF ITS LOCAL 728, AS WELL AS 03:58:55.821 --> 03:58:56.855 THE LOS ANGELES COUNTY 03:58:56.922 --> 03:58:59.792 FEDERATION OF LABOR. THIS TAX 03:58:59.858 --> 03:59:01.927 INCENTIVE IS A JOBS BILL. IT'S 03:59:01.994 --> 03:59:03.095 POINT BLANK. AND IT'S NOT JUST 03:59:03.162 --> 03:59:04.830 A JOBS BILL. IT'S A CAREERS 03:59:04.897 --> 03:59:06.598 BILL. THE LOS ANGELES COUNTY 03:59:06.665 --> 03:59:08.033 FEDERATION OF LABOR BELIEVES 03:59:08.100 --> 03:59:10.035 THAT UNION JOBS ARE A PATHWAY 03:59:10.102 --> 03:59:12.037 OUT OF POVERTY AND HOMELESSNESS. 03:59:12.104 --> 03:59:15.007 SO THIS IS A PATHWAY FOR I WANT 03:59:15.074 --> 03:59:16.742 TO TALK ABOUT THE SOCIAL IMPACT 03:59:16.809 --> 03:59:19.278 AND A PATHWAY FOR MEMBERS. FROM 03:59:19.344 --> 03:59:21.480 THE IAS PERSPECTIVE, WE'VE HAD 03:59:21.547 --> 03:59:23.182 A RELATIONSHIP WITH HOLLYWOOD 03:59:23.248 --> 03:59:24.983 CPR, OUR PATHWAY PROGRAM FOR 03:59:25.050 --> 03:59:29.321 OVER 20 YEARS, THE DGA AND WWGA 03:59:29.388 --> 03:59:31.457 HAS A SIMILAR PROGRAM OF 03:59:31.523 --> 03:59:33.292 LIFTING PEOPLE FROM 03:59:33.358 --> 03:59:33.992 UNDERREPRESENTED COMMUNITIES 03:59:34.059 --> 03:59:35.461 AND GIVING THEM PATHWAYS INTO 03:59:35.527 --> 03:59:41.567 THE INDUSTRY. SIX YEARS AGO, WE 03:59:41.633 --> 03:59:43.302 INCORPORATED THAT INTO OUR OUR 03:59:43.368 --> 03:59:45.504 CONTRACT, WHERE WE HAVE 03:59:45.571 --> 03:59:46.905 INTERNSHIPS WITHIN EVERY 03:59:46.972 --> 03:59:49.074 DEPARTMENT ON THE SET THAT WAS 03:59:49.141 --> 03:59:51.310 THEN STRENGTHENED BY THIS TAX 03:59:51.376 --> 03:59:53.412 INCENTIVE, WITH THE UPLIFTS OF 03:59:53.479 --> 03:59:55.214 ENCOURAGING PRODUCTIONS TO 03:59:55.280 --> 03:59:57.683 INCLUDE IN INTERNS ON ON THEIR 03:59:57.750 --> 03:59:59.918 SETS. I THINK THIS IS A 03:59:59.985 --> 04:00:01.019 REFLECTION OF THE LEGACY OF 04:00:01.086 --> 04:00:02.387 DOCTOR MARTIN LUTHER KING THAT 04:00:02.454 --> 04:00:04.656 ALSO FELT THAT UNION JOBS WERE 04:00:04.723 --> 04:00:06.358 A PATHWAY OUT OF POVERTY, THE 04:00:06.425 --> 04:00:08.193 WORK OF SISTER DOLORES HUERTA 04:00:08.260 --> 04:00:11.730 AS WELL. SO ONCE THEY GET OUT 04:00:11.797 --> 04:00:13.932 OF THIS, THEY NEED JOBS TO 04:00:13.999 --> 04:00:15.734 CONTINUE TO STAY IN IT. A 04:00:15.801 --> 04:00:17.569 RECENT GRADUATE FROM HOLLYWOOD, 04:00:17.636 --> 04:00:20.439 CPR SPOKE ABOUT HOW HE WAS ON A 04:00:20.506 --> 04:00:23.008 CONTINUOUS PATHWAY OF FAST FOOD 04:00:23.075 --> 04:00:24.743 JOB AFTER FAST FOOD JOB, AFTER 04:00:24.810 --> 04:00:27.613 FAST FOOD JOB. AND THESE 04:00:27.679 --> 04:00:29.414 PROGRAMS FOR THE FIRST TIME 04:00:29.481 --> 04:00:30.516 PROVIDED HIM WITH THE RESPECT 04:00:30.582 --> 04:00:32.684 AND DIGNITY OF BEING ABLE TO 04:00:32.751 --> 04:00:34.453 SUPPORT HIS FAMILY AND SEEING A 04:00:34.520 --> 04:00:36.989 FUTURE WHERE HE FELT SEEN AS AN 04:00:37.055 --> 04:00:38.123 INDIVIDUAL. SO I WANT TO THANK 04:00:38.190 --> 04:00:40.058 YOU FOR THE WORK THAT YOU ALL 04:00:40.125 --> 04:00:41.260 HAVE DONE, AND I HOPE TO 04:00:41.326 --> 04:00:43.028 CONTINUE THIS CONVERSATION SO 04:00:43.095 --> 04:00:45.798 WE CAN STRENGTHEN THIS PROGRAM 04:00:45.864 --> 04:00:46.865 FOR FUTURE CAREERS AND PEOPLE 04:00:46.932 --> 04:00:49.201 TO COME. THANK YOU. THANK YOU 04:00:49.268 --> 04:00:53.572 SO MUCH. GOOD AFTERNOON 04:00:53.639 --> 04:00:54.606 EVERYBODY. GOOD AFTERNOON, MR. 04:00:54.673 --> 04:00:55.707 CHAIR AND ASSEMBLY MEMBERS. MY 04:00:55.774 --> 04:00:56.942 NAME IS STEVE KING, PRESIDENT 04:00:57.009 --> 04:00:58.610 OF THE BOARD OF PUBLIC WORKS 04:00:58.677 --> 04:00:59.978 AND CHIEF FILM LIAISON FOR THE 04:01:00.045 --> 04:01:01.747 CITY OF LOS ANGELES, AND MAYOR 04:01:01.814 --> 04:01:03.649 KAREN BASS. WE APPRECIATE THE 04:01:03.715 --> 04:01:05.417 LEGISLATURE'S EXPANSION OF THE 04:01:05.484 --> 04:01:08.287 STATE TELEVISION TAX CREDIT TO 04:01:08.353 --> 04:01:09.454 $750 MILLION. BUT AS YOU HEARD 04:01:09.521 --> 04:01:11.356 FROM MANY OF US TODAY, THERE IS 04:01:11.423 --> 04:01:13.292 MUCH MORE WORK TO DO. WE 04:01:13.358 --> 04:01:14.760 STRONGLY SUPPORT AN UNCAPPED 04:01:14.827 --> 04:01:16.562 STATE TAX CREDIT SYSTEM, 04:01:16.628 --> 04:01:18.330 INCLUDING ABOVE THE LINE AND 04:01:18.397 --> 04:01:19.832 EXPANDING ELIGIBILITY 04:01:19.898 --> 04:01:21.233 ELIGIBILITY TO INCLUDE 04:01:21.300 --> 04:01:22.668 REOCCURRING REALITY AND 04:01:22.734 --> 04:01:24.169 COMPETITION TELEVISION SHOWS. 04:01:24.236 --> 04:01:25.938 WE MUST REMAIN COMPETITIVE, NOT 04:01:26.004 --> 04:01:27.406 ONLY ATTRACTING NEW PRODUCTIONS 04:01:27.472 --> 04:01:29.842 BUT ALSO IN RETAINING EXISTING 04:01:29.908 --> 04:01:31.310 PRODUCTIONS, PROTECTING GOOD 04:01:31.376 --> 04:01:32.778 PAYING UNION JOBS AND 04:01:32.845 --> 04:01:34.279 SUPPORTING LOCAL BUSINESSES. WE 04:01:34.346 --> 04:01:36.048 LOOK FORWARD TO OUR PARTNERSHIP 04:01:36.114 --> 04:01:37.449 AND MAKING SURE THAT LOS 04:01:37.516 --> 04:01:38.650 ANGELES AND CALIFORNIA REMAINS 04:01:38.717 --> 04:01:39.818 THE ENTERTAINMENT CAPITAL OF 04:01:39.885 --> 04:01:41.653 THE WORLD. THANK YOU VERY MUCH. 04:01:41.720 --> 04:01:42.754 THANK YOU. THANK YOU, MAYOR 04:01:42.821 --> 04:01:45.390 BASS FOR ALL OF HER SUPPORT. 04:01:45.457 --> 04:01:47.826 WITH THAT, I'D LIKE TO THANK 04:01:47.893 --> 04:01:49.094 EVERYONE WHO PARTICIPATED TODAY. 04:01:49.161 --> 04:01:50.762 I WANT TO THANK IN PARTICULAR, 04:01:50.829 --> 04:01:52.130 SHEILA MCFARLAND, WHO IS MY 04:01:52.197 --> 04:01:52.731 LEGISLATIVE DIRECTOR, SITTING 04:01:52.798 --> 04:01:54.366 TO MY RIGHT. SHE HAS BEEN 04:01:54.433 --> 04:01:56.201 WORKING NIGHT AND DAY OVER THE 04:01:56.268 --> 04:01:59.137 LAST MONTH ON THIS. I ALSO WANT 04:01:59.204 --> 04:02:00.672 TO THANK OUR ASSEMBLY SERGEANTS 04:02:00.739 --> 04:02:03.008 WHO CAME IN TODAY, TODAY, TO 04:02:03.075 --> 04:02:05.143 MAKE SURE THAT WE ARE WELL 04:02:05.210 --> 04:02:06.612 SERVED, AS WELL AS FOLKS FROM 04:02:06.678 --> 04:02:08.080 THE ASSEMBLY COMMUNICATIONS 04:02:08.146 --> 04:02:09.214 STAFF. SO THANK YOU VERY MUCH. 04:02:09.281 --> 04:02:10.983 I WANT TO THANK THE STAFFS OF 04:02:11.049 --> 04:02:12.818 ALL OF MY COLLEAGUES AND MY 04:02:12.885 --> 04:02:13.886 STAFF IN PARTICULAR. I THINK 04:02:13.952 --> 04:02:15.220 THEY'RE ALL HERE TODAY AND THE 04:02:15.287 --> 04:02:17.022 STAFFS OF ALL OF MY COLLEAGUES. 04:02:17.089 --> 04:02:19.892 SO WITH THAT, THANK YOU FOR ALL 04:02:19.958 --> 04:02:20.926 YOUR PARTICIPATION. I WANT TO 04:02:20.993 --> 04:02:22.160 THANK THOSE IN THE AUDIENCE FOR 04:02:22.227 --> 04:02:23.896 COMING AND HAVING SUCH INTEREST 04:02:23.962 --> 04:02:24.930 IN THIS IMPORTANT TOPIC. AND 04:02:24.997 --> 04:02:26.131 WITH THAT, THE HEARING OF THE 04:02:26.198 --> 04:02:27.199 ASSEMBLY SELECT COMMITTEE ON 04:02:27.266 --> 04:02:28.233 GROWING AND RETAINING THE 04:02:28.300 --> 04:02:30.535 CREATIVE ECONOMY IS ADJOURNED. 04:02:30.602 --> 04:02:45.617 THANK YOU.