City Council approves proposal to help LA film production

The City Council Tuesday unanimously approved a proposal aimed at reducing fees and streamlining other processes in a bid to support filmmakers in Los Angeles.

Council members instructed several city departments to report in 30 days with recommendations to adjust city fees, permits, parking and security requirements for shooting on city-owned property and certifying new sound stages.

Councilman Adrin Nazarian introduced the motion on March 28, with support from colleagues Nithya Raman and Hugo Soto-Martinez.

"This motion is focused on revitalizing local filming production, streamlining the city's permitting process, and making it more efficient and less bogged down by bureaucracy," Nazarian said. "Simply put, this is about protecting middle class workers and also the very industry that established Los Angeles on the world map."

A former state legislator, Nazarian authored AB 2936 in 2018, which sought to expand statewide production tax credits, but it did not advance. In his motion, the councilman noted that state leaders are currently considering two bills intended to revitalize production.

In Sacramento, Assemblymember Rick Chavez Zbur (D-Hollywood) and State Senator Ben Allen (D-Santa Monica), along with joint authors Assemblymember Isaac Bryan (D-Los Angeles) and Assemblymember Sharon Quirk-Silva (D-Fullerton), and Senator Caroline Menjivar (D-San Fernando Valley), Senator Sasha Renee Perez (D-Pasadena) and Senator Henry Stern (D-Los Angeles), held a press conference yesterday to advocate for AB 1138 & AB 630. 

AB 1138 and SB 630 seek to make California’s tax credit program more competitive with other states and countries, supporting small businesses and jobs tied to the entertainment industry.

Councilwoman Traci Park, chair of the Trade, Travel and Tourism Committee, said the council is asking for help from the rest of the state to stay competitive, as other jurisdictions have offered a lot more tax credits to encourage film production.

"In Los Angeles, FilmLA and other bureaucracy that we have put in place has made it too hard and too expensive for productions, especially smaller production films here," Park said. "We have to fix that."

Greg Zekowski, a member of the Directors Guild of America, was one of about 50 people representing the film industry who expressed support for Nazarian's motion. He said the city needs to "re-address what we're doing" and described the proposal as a "major step forward."

"Any headwinds for production is causing production to leave Los Angeles and it's causing our members to lose their jobs and have a lack of work, so I urge the council to vote in support," said Martin Weeks, president of IATSE Local 728.

FilmLA is a partner film office for the city and county of Los Angeles and other local jurisdictions. Last year, the organization raised its permit fees by 4%.

A permit application fee, covering up to five locations for seven consecutive days, increased from $895 to $931 effective July 1, 2024. Fees for drone administration, helicopter administration, gunfire administration, special FX for explosion and smoke, as well as lane closure administration increased from $75 to $78, among other adjustments.

Philip Sokoloski of FilmLA explained that the service rates fall below the median and average regional costs for a permit.

"Since our permit process is multi-location and multi-jurisdictional, that further costs cuts down on paperwork headaches and cost work in new areas," he said.

FilmLA's rates also address the high cost of living for employees. Additionally, the organization's service rates are fixed, meaning they are non- adjustable except to account for annual increases allowed for inflation.

"It's a common misperception that the total prices of film permits is within FilmLA control," Sokoloski told City News Service in an email. "Only about 40% of the fees paid by FilmLA customers fund our operation, the rest goes to cover government fees for service and personnel."

He added that the council's idea of a more streamlined permit process is "always worth exploring."

According to FilmLA, the city already offers more film industry incentives than most jurisdictions, including a limited waiver of use fees to film on most city properties. At the same time, city personnel fees related to the use of government buildings, or for police and fire oversight on set, among other categories, are not currently waived.

FilmLA reported in early April that regional activity for on-location filming in the Greater Los Angeles area declined by 22.4% in the first quarter of the year. All major filming categories declined in the first quarter, with commercials coming closest to breaking even.

Overall production has fallen as a result of a global decline in production, a competitive market, a small effect from January's wildfires, the impacts of L.A.'s dual writers and actors strikes in 2023 and the COVID-19 pandemic.

The film office, and L.A. elected officials, have shown support for two proposed state bills intended to expand and modernize the state's tax credit program.

Senate Bill 630, introduced by state Sen. Ben Allen, D-Santa Monica, seeks to reduce runtime requirements for TV shows to become eligible for tax incentives from 40 minutes to 20 minutes. Animation films, series, shorts and large-scale competition shows with a minimum budget of $1 million would be added on the list of eligible projects.

The bill proposes a 35% tax credit for any production that shoots within 30 miles of a so-called L.A. zone and other SoCal locations.

Assembly members Rick Chavez Zbur, D-Hollywood, and Isaac Bryan, D-Los Angeles, introduced AB 1138, which aims to eliminate a "50% ownership or 10-year lease requirement" for productions using a certified sound stage, and instituting more flexibility into the tax incentive program.

Additionally, Gov. Gavin Newsom has proposed expanding the California Film & Television Tax Credit Program to $750 million or more per year.

On Monday, a broad coalition of state legislators and film industry representatives joined Allen, Zbur and Bryan to discuss their proposals.

"We know how economically impactful our entertainment industry is, not just for Los Angeles but for the state as a whole," Allen said in a statement. "It was great seeing this recognition recently through the strong support of committee members who represent regions across California. We all share a common goal as provided through SB 630 and AB 1138 -- bringing overdue support to a vital workforce which has seen production leave our state in droves over recent years."

Zbur added that "California's film and television industry is at a breaking point -- and AB 1138 and SB 630 are about saving good jobs and protecting the workers and small businesses who built this iconic industry."

The Assembly Revenue and Taxation Committee discussed AB 1138 Monday afternoon, and SB 630 is under consideration by the Senate Appropriations Committee, according to Zbur's office.

Additional reporting by City News Service.