8/4/2019 Governor Brown, Save Thousands of Good Middle Class Jobs by Signing AB 1069 Into Law

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September 15, 2011The Honorable Jerry Brown

Governor of CaliforniaState CapitolSacramento, CA 95814

Re: AB 1069 (Fuentes) SUPPORT

Dear Governor Brown:

On September 9, 2011, the California State Legislature overwhelmingly approved Assembly Bill1069, legislation that would extend the states extraordinarily successful entertainmentproduction tax incentive for one year. The original incentive was the result of legislation that I

authored when I was in the Assembly and I write to urge you to sign this extension.

For more than 15 years, California had been hemorrhaging good middle class jobs as film andTV production fled to the many other states and countries that had enacted targeted taxincentives. After three years of work as Chair of the Assemblys Select Committee on thePreservation of Californias Entertainment Industry, I authored the states first successfulproduction tax incentive bill, AB 3x 15 (Krekorian) which was enacted in 2009 (along with acompanion bill, SBX3 15 (Calderon)). The results of the first two years of the incentive programare now in, and there can be no question that it has been an enormously successful and cost-effective creator of jobs and generator of revenues.

The Los Angeles Economic Development Corporation (LAEDC) thoroughly analyzed the firsttwo years of the production incentive and recently released a report demonstrating its enormouspositive impact. According to the LAEDC report, the incentive sustained more than 20,000 jobsin the state and generated about $3.8 billion in direct economic output.

More than $200 million in new revenues were generated in the first two years for state and localgovernments in the form of income, property, insurance and sales taxes, along with permits andfees, according to the report more than the actual cost of the tax credit.

8/4/2019 Governor Brown, Save Thousands of Good Middle Class Jobs by Signing AB 1069 Into Law

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In light of the incentives proven record of success in putting Californians back to work, AB1069 is vital to the continuing recovery of production in California. Without it, the incentive willexpire in 2013 and our gains will evaporate. Just as importantly, failure to pass this importantmeasure would send the wrong signal to Californias heritage industry at precisely the wrongtime.

If our state government is serious about getting Californians back to work, we must beaggressive in preserving the industry that creates so many middle class jobs and supports somany local businesses both small and large. We must be willing to fight to keep the film andtelevision production that is such an inextricable part of our identity, our history and oureconomy.

We must never allow the day to come when we look up at the Hollywood sign on the hill andrealize that Hollywood is no longer here.

I respectfully ask that you save thousands of good middle class jobs by signing AB 1069 into

law.

Very truly yours,

PAUL KREKORIANCouncilmember, Second District

PMK: JO