AN ACT to expand the film and entertainment grant Fund.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 143B‑437.02A reads as rewritten:

§ 143B‑437.02A.  The Film and Entertainment Grant Fund.

(a)        Creation and Purpose of Fund. – There is created in the Department of Commerce a special, nonreverting account to be known as the Film and Entertainment Grant Fund to provide funds to encourage the production of motion pictures, television shows, movies for television, productions intended for on‑line distribution, and commercials and to develop the filmmaking industry within the State. The Department of Commerce shall adopt guidelines providing for the administration of the program. Those guidelines may provide for the Secretary to award the grant proceeds over a period of time, not to exceed three years. Those guidelines shall include the following provisions, which shall apply to each grant from the account:

(1)        The funds are reserved for a production on which the production company has qualifying expenses of at least the following:

a.         For a feature‑length film:film, one million dollars ($1,000,000).

1.         One million five hundred thousand dollars ($1,500,000), if for theatrical viewing.

2.         Five hundred thousand dollars ($500,000), if a movie for television.

…

(2)        The funds are not used to provide a grant in excess of any of the following:

a.         An amount more than twenty‑five percent (25%) thirty percent (30%) of the qualifying expenses for the production if at least seventy‑five percent (75%) of (i) filming of the production and (ii) the qualified expenses incurred by the production both occur in tier one and tier two areas, as defined in G.S. 143B‑437.08.

b.         An amount more than seven million dollars ($7,000,000) twenty million dollars ($20,000,000) for a feature‑length film, more than fifteen million dollars ($15,000,000) twenty‑five million dollars ($25,000,000) for a single season of a television series, or two hundred fifty thousand dollars ($250,000) for a commercial for theatrical or television viewing or on‑line distribution.

…

(b)        Definitions. – The following definitions apply in this section:

…

(3)        Highly compensated individual. – An individual who directly or indirectly receives compensation in excess of one four million dollars ($1,000,000) ($4,000,000) for personal services with respect to a single production. An individual receives compensation indirectly when a production company pays a personal service company or an employee leasing company that pays the individual.

…

(7)        Qualifying expenses. – The sum of the amounts listed in this subdivision, substantiated pursuant to subsection (d) of this section, and spent in this State by a production company in connection with a production, less the amount paid in excess of one four million dollars ($1,000,000) ($4,000,000) to a highly compensated individual:

….

SECTION 2.  This act is effective when it becomes law and applies to grant proceeds provided from the Film and Entertainment Grant Fund on or after that date.