Section 5554.1 - [Operative 4/1/2025] Career Programs and Requirements(a)(1) Qualified motion picture project applicants allocated tax credits under the California Film and Television Tax Credit Program 4.0 must fulfill the responsibilities outlined in subdivisions (b) and (c) of this section.(2) Organizations wishing to provide career training opportunities related to the California Film and Television Tax Credit Program 4.0 must be approved for participation or partnership in accordance with subdivision (d) of this section, for Career Readiness, or subdivision (e) of this section, for Career Pathways.(b) Pursuant to section 5554(d)(6) of this article, qualified motion picture project applicants of any category are required to participate in the Career Readiness Program which focuses on career-based learning and training programs and public service opportunities approved by the CFC in consultation with the California Department of Education (CDE) and/or California Community College Chancellor's Office (CCCCO) aimed at exposing career-based learning program, high school, community college, and California State University students to careers in the entertainment industry. To demonstrate compliance with this requirement the applicant must submit the applicable form for Career Readiness verification, Form CR4-1, CR4-2, CR4-3, CR4-4, or CR4-5 (January 1, 2025), hereby incorporated by reference, to the CFC within seven (7) calendar days of the conclusion of the career-based learning and training program or public service opportunity. To meet the requirements of this section, the applicant may do any of the following:(1) Provide to students enrolled within the past twelve months in an accredited California high school, community college, California State University, or career-based learning program one or more trainee/internship positions. The total number of hours worked by a trainee/intern, or a combination of trainees/interns must be a minimum of three hundred (300) hours and each trainee/intern hired must work a minimum of one hundred (100) hours. Trainees/interns must be 18 years of age or older. Trainee/internship experience must include working with professionals in the film industry and hands-on work assignments. Any production utilizing trainees/interns in technical craft positions must notify the applicable union representative prior to the start of the trainee/internship; or(2) Provide to students enrolled within the past twelve months in an accredited California high school, community college, California State University, or career-based learning program one or more live or virtual classroom workshops, panels, or demonstrations on aspects of the film industry, which may include but are not limited to set operations, pre- or postproduction and specific technical crafts, conducted by entertainment industry professionals; or(3) Provide to students enrolled within the past twelve months in an accredited California high school, community college, California State University, or career-based learning program a minimum of eight (8) hours of professional skills tours, which may include visits to a set, studio, or one or more departments during preproduction, production, or postproduction to observe set operations; or(4) Provide a minimum of eight (8) hours of continuing education for educators and/or faculty to observe the set operations, postproduction, and other specialized departments in the film industry; or(5) Make a financial contribution to a specific local or state educational agency or higher education institution specializing in arts, media, and entertainment career-oriented programs. The contribution shall be based on a quarter percent (0.25%) of the estimated tax credit reservation, amounting to no less than five thousand dollars ($5,000) and not required to exceed twelve thousand dollars ($12,000), though contributions in excess of the maximum required amount are permitted; or(6) Provide a learning opportunity or financial contribution of equal time or value through other arts, media, and entertainment programs, workforce programs, etc., which are not affiliated with CCCCO or CDE, but which have been proposed to and approved by the CFC, on a case by case basis, as having been demonstrated by the applicant to be a learning opportunity or financial contribution of equal time or value to the other options in this subdivision.(c) A qualified motion picture shall make a contribution to the Career Pathways Training Program, which is a program created to fund technical skills training for individuals from underserved communities for entry into film and television jobs, as specified in Revenue and Taxation Code sections 17053.98.1(e)(1)(A)(iii) and 23698.1(e)(1)(A)(iii). (1) The contribution shall be based on a percentage of the estimated tax credit reservation as stated on the CAL. The applicable percentage is:(A) For independent films, 0.25% of the CAL amount.(B) For all other motion picture projects, 0.5% of the CAL amount.(2) The contribution shall be submitted to the CFC with the career pathways program form, Form CPP4 (January 1, 2025), hereby incorporated by reference, no later than thirty (30) calendar days after the CAL date; failure to submit the contribution within this time frame will result in revocation of the CAL. (A) An applicant facing a technical or funds-related barrier to meeting the deadline may request an extension of up to ten (10) calendar days and the CFC will grant the extension if the applicant requests such an extension prior to the expiration of the timeframe specified in paragraph (2) above and provides supporting documentation.(3) The contribution is refundable if the project does not receive a tax credit certificate, Form M4 (January 1, 2025), hereby incorporated by reference. A portion may also be refundable if the tax credit amount is significantly reduced due to reasonable cause, as defined in section 5550(r)(2) of this article.(4) A qualified motion picture that receives an increase in allocated tax credits, causing an additional contribution sum to become due, shall make a payment of that additional sum within thirty (30) calendar days of notification of that increase in allocation.(5) The contribution must be made by business check. No other payment options will be accepted.(d)(1) Career-based learning organizations seeking CFC approval of their program for Career Readiness participation must submit an application to the CFC, including supporting documentation that demonstrates that the program meets the requirements outlined in paragraph (2) below. (A) The application must include: 1. Type of organization, name of organization, contact person or persons, and organization website, if available.2. Supporting documentation that demonstrates that the program meets the requirements outlined in paragraph (2) below.(B) The application shall be submitted to the CFC via email to IncentiveProgram4@film.ca.gov.(2) Career-based learning programs approved for the Career Readiness Program by the CFC must be one of the following: (A) A mentorship program, which, at minimum: 1. Provides individualized supportive services including career guidance, individualized coaching, networking, and goal setting.2. Facilitates opportunities for peer-to-peer or group mentorship.(B) An awareness and exploration program, which, at minimum:1. Builds awareness of career opportunities through guest speakers, online platforms, and master classes.2. Identifies interests, skills, and career possibilities through guided self-assessments and research.3. Facilitates work-based learning experiences including mentorships, exploratory trainee/internships, and workplace simulations.(C) A preparation and training program, which, at minimum:1. Facilitates essential workplace skills training, including resume development, interview preparation, professional networking, set etiquette training, industry-specific financial planning, and/or industry fundamentals.2. Facilitates paid on-the-job training in a specific craft, trade, or occupation in partnership with an employer.(D) A union-approved training program, which, at minimum:1. Facilitates craft-specific skills training by experienced union industry professionals and/or approved third party training vendors as determined by the local union.2. Facilitates essential set etiquette training, industry and labor union fundamentals, safety courses and certifications as determined by the local union.3. Facilitates craft-specific paid on-the-job training with a signatory company as determined by the local union.(3) An applicant that fulfills the requirements of this subdivision shall be approved for participation in the Career Readiness Program.(e)(1) Career-based organizations seeking CFC approval of their program for Career Pathways partnership must submit an application to the CFC's Career Pathways fiscal agent during a Request for Proposal (RFP) process initiated by the fiscal agent, as specified in subparagraphs (A), (C), and (D) below. (A) Applications will be accepted in accordance with the RFP process initiated by the fiscal agent. An RFP will be issued prior to the start of the California Film and Television Tax Credit Program 4.0. RFPs will subsequently be released as needed in response to changes in program revenue or training partners. Organizations interested in participating in the RFP process may request to be placed on an RFP alert mailing list by emailing the CFC at IncentiveProgram4@film.ca.gov or by emailing the fiscal agent directly.(B) To ensure Career Pathways Program success and meaningful impact, the CFC and its fiscal agent for the Career Pathways Program will, in addition to the factors outlined in paragraph (2) below, consider the following aspects when evaluating applications: 1. Availability of participants.2. Fiscal agent administrative resources.3. Overlap with the focus areas of currently approved organizations, including but not limited to industry role focus and student outreach focus.4. Specific industry labor needs, as determined by the fiscal agent based on information from industry and labor stakeholders.(C) The application must include:1. Organization name, date founded, contact person or persons, organization website, information about any industry affiliations.2. Supporting documentation that demonstrates that the program meets the requirements outlined in paragraph (2) below.3. Unless included in the above, information about the focus areas of the organization with regard to industry roles.4. Unless included with the above, information about the focus areas with regard to the intended participant pool.(i) For purposes of compliance with federal and state law, the CFC will reject any application that includes quotas or numeric goals related to a protected class.5. Unless included in the above, participant capacity and potential for growth.(D) The application shall be submitted to the CFC Career Pathways fiscal agent as directed in the RFP.(2) Career Pathways programs approved by the CFC and its fiscal agent must:(A) Be conducted by a nonprofit organization that has an established record of training and job placement in the entertainment industry.(B) Be focused on training individuals eighteen (18) years or older from traditionally underserved communities.(C) Offer training courses focused on one or more of the following: 1. Skilled, technical positions that would be eligible for qualified wages if performed on a qualified motion picture.2. Administrative- and industry-related technical occupations.3. Soft skills training for the motion picture industry.(3) The Career Pathways program fiscal agent and the CFC shall approve or reject a career-based organization applicant based on the information provided pursuant to paragraph (2) and the information provided relating to the factors considered pursuant to subparagraph (B) of paragraph (1).(A) An applicant that fulfills the requirements of paragraph (2) and is rejected because of a factor or factors detailed in subparagraph (B) of paragraph (1) may respond to and be considered again under a future RFP.(B) An applicant that is rejected because it does not fulfill the requirements of paragraph (2) may respond to a future RFP if it makes changes to fulfill the requirements.(4) The Career Pathways program fiscal agent shall have the authority to enter into and implement contracts, including terminating such contracts, with approved applicants as appropriate to carry out the purposes and intent of this subdivision.Cal. Code Regs. Tit. 10, § 5554.1
Note: Authority cited: Sections 17053.98.1(e) and 23698.1(e), Revenue and Taxation Code; and Section 11152, Government Code. Reference: Sections 17053.95(e), 17053.98(e), 17053.98.1(d), 17053.98.1(e), 23695(e), 23698(e), 23698.1(d) and 23698.1(e), Revenue and Taxation Code; and Section 14998.1, Government Code.
1. New section filed 12-17-2024; operative 4/1/2025 (Register 2024, No. 51).