On May 21st, 2012, the day the Governor and the EDC met with Curt Schilling to vote on the issuance of an additional $14.3 million of “PRE-APPROVED” motion picture tax credits for 38 Studios, Grant Garvin intervened to stop the approval with the following email sent to Governor Chafee and all EDC members, including the Senate President and the House Speaker.
After receiving confirmation from the Governor’s office confirming their receipt of this email, and prior to the scheduled 5 p.m. EDC meeting, the Governor’s Chief of Staff was personally informed by Garvin, “that if the Governor went forward, in his dual capacity as Governor and Chairman of the EDC and issued the Tax Credits to Curt Schilling, contrary to R.I.Gen. Laws, Garvin would immediately proceed with the filing of a Petition for the Governor’s recall for violations of the duties of his office.”
* As we all know, the Tax Credits were not issued that evening nor thereafter, pushing the first domino to fall.
* note: Upon taking this bold action, the full contents of the following email was cc’d to local TV, radio, and print media via Press Releases that were never reported on, along with no coverage of a lengthy 3 hour meeting at the request of political reporter Bill Rappleye of NBC 10 News with Grant Garvin that took place at Garvin’s office prior to the scheduled EDC meeting regarding his actions putting the Governor on notice ‘that Curt Schilling was NOT eligible for the $14.3 million of R.I. film tax credits’… that had been (illegally) ‘PRE-APPROVED’.
——– Original Message ——–
|Date:||Mon, 21 May 2012 13:06:37 -0400|
|Subject:||38 Studios, LLC may not be eligible for ‘Motion Picture Production Tax Credits’ under RI General Laws|
Due to the recent events surrounding the potential 38 Studios default, I have been doing some cursory research involving the eligibility of the company to apply for motion picture tax credits. If what I see is indeed correct, under RI law, they may be ineligible for these credits due to the company clearly being a Delaware registered operation, which is not in accordance with the existing tax credit law.
A summary of my basic legal research is below. I thought that it may be of interest, in light of the impending outcome of this very public situation that is of great importance to the integrity our State.
Thank you for your time,
38 Studios, LLC is formed under the Laws of Delaware.
|State of Rhode Island and Providence Plantations
Office of the Secretary of State
| Division Of Business Services
148 W. River Street
Providence RI 02904-2615
38 Studios, LLC Summary Screen
Help with this form
|The exact name of the Foreign Limited Liability Company: 38 Studios, LLC|
|The Foreign Limited Liability Company is organized under the laws of: State: DE Country: USA|
|The location of its principal office:
| The mailing address or specified office:
|The name and address of the Registered Agent:
| The limited liability company is to be managed by its Managers
The name and business address of each manager:
|Select a type of filing from below to view this business entity filings:
Click Here to access 2006 and 2007 annual reports filed and imaged prior to July 25, 2007. Identification Number is Required
38 Studios, LLC is a Foreign Limited Liability Company organized under the laws of DELAWARE.
All they possess is a “Certificate of Registration to transact business in the State of Rhode Island”. Filing #201067077710 Date: 09/10/2010 10:36 AM
Therefore, Under Rhode Island Gen. Law
State of Rhode Island – Division of Taxation Regulations,
38 Studios, LLC does not meet the requirements to apply for R.I. ‘Motion Picture Production Tax Credits’.
Because under R.I.G.L. they were not “formed under the laws of the state of Rhode Island”
*** Please see relevant sections of R.I.G.L. and R.I. Div. of Taxation Regulations below:
Motion Picture Production Tax Credits
§ 44-31.2-2 Definitions. – For the purposes of this chapter:
(3) “Domiciled in Rhode Island” means a corporation incorporated in Rhode Island or a partnership, limited liability company, or other business entity formed under the laws of the state of Rhode Island for the purpose of producing motion pictures as defined in this section, or an individual who is a domiciled resident of the state of Rhode Island as defined in chapter 30 of this title.
State of Rhode Island – Division of Taxation
Motion Picture Production Company Tax Credits
Regulation CR 09-01
Certification of Motion Picture Production Company Tax Credits
STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS
RULES AND REGULATIONS FOR THE CERTIFICATION OF
MOTION PICTURE PRODUCTION COMPANY TAX CREDITS
RHODE ISLAND DIVISION OF TAXATION, DEPARTMENT OF REVENUE,
IN CONJUNCTION WITH THE
RHODE ISLAND FILM AND TELEVISION OFFICE
RULE 5. DEFINITIONS
F. “Applicant” means a motion picture production company, which is a corporation, partnership, limited partnership, or other entity or individual, submitting an application to the Film Office for initial or final certification of a production.
L. “Domiciled in Rhode Island” means a corporation incorporated in Rhode Island or a partnership, limited liability company, or other business entity formed under the laws of the State of Rhode Island for the purpose of producing motion pictures, or an individual who is a domiciled resident of Rhode Island as defined in the Rhode Island General Laws Section 44-30. Such individual, corporation, partnership, limited liability company, or other entity, is subject to the General Laws of the State of Rhode Island including, but not limited to, Chapters 44-11, 44-12 and 44-30.
R. “Motion picture” means feature-length film, video, video game, television series, or commercial made in Rhode Island, in whole or in part, for theatrical or television viewing or as a television pilot. Motion picture shall not include the production of television coverage of news or athletic events, nor shall it apply to any film, video, television series or commercial or production for which records are required under Section 2257 of Title 18, U.S.C., to be maintained with respect to any performer in such production or reporting of books, films, etc. with respect to sexually explicit conduct.
S. “Motion Picture Production Company” means a corporation, partnership, limited liability company, or other business entity, domiciled in Rhode Island, and engaged in the business of producing one or more motion pictures. Generally, the motion picture production company controls the state certified motion picture during production and is responsible for payment of the direct production expenses (including pre- and post-production), and is a signatory to the state certified motion picture’s contracts with its payroll company and facility operators. Motion picture production company shall not mean or include:
(a) any company owned, affiliated, or controlled, in whole or in part by any company or person which is in default (i) on taxes owed to the state; or (ii) on a loan made by the state; or (iii) a loan guaranteed by the state; or,
(b) any company or person who has ever declared bankruptcy under which an obligation of the company or person to pay or repay public funds or monies was discharged as a part of such bankruptcy.
AA. “State Certified Production” means a motion picture production approved by the Rhode Island Film & Television Office and produced by a motion picture production company domiciled in Rhode Island, whether or not such company owns or controls the copyright and distribution rights in the motion picture; provided that such company has either: (a) signed a viable distribution plan; or (b) is producing the motion picture for: (i) a major motion picture distributor; (ii) a major theatrical exhibitor; (iii) a television network; or (iv) a cable television programmer. Additionally, the production must be produced with the motion picture’s “primary locations” being filmed within the State of Rhode Island and with a “total production budget” of a minimum of three hundred thousand dollars ($300,000).
RULE 7.1 PRIORITY AND ALLOCATION OF CREDITS(1) Section 44-31.2-5 of the Rhode Island General Laws, as amended, provides that for any tax year beginning after December 31, 2007, no more than fifteen million dollars ($15,000,000) in motion picture production company tax credits may be issued, in any calendar year. Prior to this amendment, no such limitation was in effect.
(2) Because the amended section does not set forth how this limitation would be implemented and because the Applications for Credit Certification could exceed the total amount of $15,000,000 during any calendar year, it is necessary for the Film Office and the Tax Division to promulgate a rule and regulation pursuant to the authority contained in Section 44-31.
IS ANYONE GETTING THIS YET ?
‘NO ONE in the Government or the media has ever asked the right question. The one that should have been asked the day we notified the Governor… because there is so much more they would rather not be known.’
It was state sponsored corruption at the highest levels, and the only way to move forward is to hold those accountable who were responsible!