California Film Commission: motion picture tax credits: tracking and compliance program.

The document was reformatted from a traditional legislative enrolled bill layout (with Secretary/Clerk signature blocks, page numbers, and formal chapter heading) to a web-based presentation including navigation menus, search tools, version history sidebar, and share links. No changes were made to the bill's substantive text.

Removed subdivision (b)(4), which required data on participation of justice-involved individuals in apprenticeship and trainee programs used by productions receiving motion picture tax credits. This included a provision that employers would not be required to directly inquire about or collect criminal record history from employees or applicants.

The bill no longer establishes a separate comprehensive tracking and compliance program. Instead, it integrates additional data collection requirements into the existing motion picture tax credit framework, including existing diversity workplan, interim assessment, and final assessment requirements.

New monetary penalties for noncompliance were removed entirely. Noncompliance is now addressed solely through existing enforcement conditions and procedures of the motion picture tax credits. The bill explicitly states it does not create new monetary penalties, independent enforcement mechanisms, or authorize reduction in credit amounts.

ZIP Code geographic data for employee primary residences was changed from a mandatory requirement to aggregate data voluntarily reported by credit recipients for assessing local workforce impacts.

LGBTQ+ status was added as a demographic data category, but only where voluntarily provided by the employee.

Criminal justice system data was restructured. It now specifically covers participation of justice-involved individuals in apprenticeship and trainee programs, with an explicit prohibition on requiring employers to inquire about or collect criminal record history or prior convictions directly from employees or job applicants.

The commission must consult with industry stakeholders, payroll companies, and subject matter experts before adopting definitions, reporting templates, and narrowly tailored metrics for the additional data collection.

When developing reporting templates and evaluation metrics, the commission must consider both proportional representation relative to the California general population and historic and national-level underrepresentation in the film and entertainment industries.

The commission must develop protocols to reduce nonresponse rates and improve disaggregation of 'Multiple' or 'Other' categories in demographic reporting.

Workforce demographic and wage/hours data may be reported in aggregate using certified payroll data or verified third-party payroll reports, with the commission working to develop standardized templates aligned with existing payroll systems.

The bill no longer amends Section 23698.1 of the Revenue and Taxation Code to correct erroneous cross-references in motion picture credit provisions. It now only adds a new section to the Government Code.

Compliance reports must now include disability status alongside race, ethnicity, gender, and veteran status for all hired employees.

A new data requirement was added: credit recipients must provide data for all hired employees relating to prior interactions with the criminal justice system.

The independent economic impact analysis was moved out of the annual compliance report and into a separate 'final project report' that must be submitted within 60 days of completion of a qualified motion picture, containing information necessary for the commission to conduct the analysis.

The commission must, to the extent feasible, contract with a California academic institution to conduct the economic impact analysis. If none is available or willing, it may contract with an independent third-party research organization based in the state.

Independent films (as defined in Sections 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, or 23698.1 of the Revenue and Taxation Code) are exempt from the final project report requirement.

The monetary penalty provision was expanded to cover failure to submit reports under both subdivision (b) and the new subdivision (c), not just subdivision (b).

The fiscal committee vote changed from 'no' to 'yes,' indicating the bill now has fiscal approval.

The entire Section 23698.1 motion picture credit provision was removed and replaced with new text. The original bill was scoped as a technical cross-reference correction, but the Senate amendment rewrites the full provision covering credit percentages, qualified motion picture definitions, allocation rules, Career Pathways Program fees, diversity workplan requirements, and credit selling/assignment rules.