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

Senator Smallwood-Cuevas's motion picture tax credit legislation expands data collection requirements for California's film industry while maintaining the existing compliance framework. The California Film Commission would collect new categories of demographic information from production companies receiving tax credits, including disability status, veteran status, and voluntary LGBTQ+ status disclosures from employees. The bill also requires gathering data on apprenticeship programs, local workforce impacts through ZIP code hiring reports, and participation of justice-involved individuals in training programs.

The Commission must develop standardized reporting templates and metrics in consultation with industry stakeholders, payroll companies, and subject matter experts. These protocols aim to reduce incomplete responses and improve data disaggregation while protecting employee privacy. Productions may submit aggregate workforce demographics through certified payroll data or verified third-party reports that align with existing systems. The Commission's evaluation metrics will consider both proportional representation relative to California's population and historical underrepresentation in the entertainment industry.

Under the legislation, the Commission would publish annual compliance reports analyzing diversity trends and economic impacts, with recommendations for improving the tax credit framework. The bill relies on existing enforcement mechanisms within the current tax credit program rather than creating new penalties or compliance requirements. Implementation would begin upon legislative appropriation of program funding.