We begin with the Summerland Studios bill.

If passed, Assembly Bill 238 would expand Nevada's film tax credit program from $10 million a year to $120 million a year for 15 years.

Sony Pictures and Warner Brothers Discovery would receive most of those tax credits, and, in exchange, they, along with Howard Hughes Holdings would build a world class production facility in Summerlin.

The bill sponsors, Assembly Members Sandra Jauregui and Daniele Monroe-Moreno say it creates jobs and diversifies the economy.

They first presented this bill in February and spoke with us recently about where it stands.

(Sandra Jauregui) I think people have questions, right, about where we are as a state and can we afford this bill.

And that's the next step in the legislative process: What does this bill mean for Nevada?

Yes, tax credits are being offered, but what is Nevada getting in return for those tax credits, right?

Well, it's getting economic output.

It's almost 3 billion in economic output a year, but before even a single tax credit is drawn down, there's going to be a $2 billion investment in construction in building these new studios.

There's going to be 19,000 construction jobs created before, production even takes place.

And then, once it's complete, once the studios are ready to go, 18,000 permanent jobs in the state of Nevada.

(Daniele Monroe-Moreno) But I also think it's really important that everyone knows that that $2 billion investment is a private investment.

Those are not state dollars.

It's the industry investing in Nevada.

-And is that how this bill differs from other states that have had similar tax credit programs?

How is this different than in other states, where some would say the results weren't all that great for the economy?

-Well, I think this is unlike any other film tax credit.

This is a first of its kind.

Like, this has never been done in the industry before.

You have Warner Brothers and Sony Pictures Entertainment partnering with one of our very own community partners, Howard Hughes.

Howard Hughes has been building Nevada for over 75 years, and the three of these have got together in a joint venture to bring a first time ever joint venture amongst two of the world class studios.

-Assembly Member Monroe-Moreno, when we were speaking a little bit off camera ahead of this, you said, What comes next is you got to figure out if the state can afford this.

Is that the right term, though?

Because, like we just heard, you're not offering money up front.

-Right.

And it's, like I said to you when we were talking off camera, you said, Where's the bill at?

The bill made it out of committee, and it's going to go to the floor after the amendment that was applied to the bill is typed up so members actually see that in writing, and then that bill will be sent to Ways and Means, which I chair.

And any piece of legislation that has any financial attachment to it comes to our committee.

And as a committee, we will look at what we have on the books.

And the tax credit would have to go on the books, but not in this fiscal year.

It won't go in until 2028.

And making sure that we are in a position that we can fund those tax credits then, but also I believe we put in the safeguards in this piece of legislation in the event that that wouldn't happen.

But all indicators that, as a fiscal leader, that I feel, this is something the state not only can afford, that the state needs to do because of the benefits that it's going to bring into our state.

-And those benefits, as we mentioned, the construction of the film studio, but also the development of a vocational training studio so that people can learn the skills needed to work in the film industry.

UNLV and the Nevada System of Higher Education both expressed support for the bill.

Meanwhile, the Clark County Education Association testified as neutral, and the Nevada State Education Association as opposed.

The NSCA thinks AB 238 will take funding away from K-12 education.

Here's that testimony and how Assembly Member Jauregui is responding.

-We don't need Hollywood influencing our state any more than it already does.

Clearly, we're already living in la-la land.

Nearly two years ago, we stood here opposing public funds for a stadium voucher to a billionaire baseball owner.

Today, we stand here again to oppose public money for a Tinseltown tax break.

This sequel is worse than the original.

If there's any investment worse than a stadium, it's a handout for film studios.

Sadly, education advocates are usually only in this committee to oppose handouts to billionaires and explain why we should keep public money in public services like schools.

We must put schools over studios and pass the plan.

This doesn't have to be a fantasy film.

Unfortunately, the Commission on School Funding's plan has been dismissed by the governor, turning Nevada's public education into a low-budget drama with a cliffhanger every two years.

-You know, this isn't about taking from one sector and giving to another.

It's about investing in Nevada's future.

And so there's money going into the State Education Fund that wouldn't have been going in if this industry doesn't come.

So 24% of the taxes generated are going to go into the State Education Fund.

That's approximately $250 million that wouldn't have gone to education if it's not for this industry coming in.

-And Assembly Member Monroe-Moreno, you testified that this is a rare opportunity for Nevada to diversify its economy.

Is this opportunity going to be available next session, following session after that, if it is not passed this year?

-You know, so many things are all about timing, right?

And this conversation didn't start with us.

This has been a conversation that has happened in Nevada for a number of years, but I believe that this is the time.

Everything has its time, and this is the time to act now, right at this time.

Just as my colleague said, we have never seen two, two studios coming together to work together on one mission and them putting in their own money for the infrastructure before getting any tax credit.

But not only the infrastructure of the movie studio, but also putting in, investing in, the community and building, you know-- and investing in our education system by partnering with our universities and colleges and with Nevada Partners to make sure that our youth are involved and learn this industry.

We've never seen this in any other state.

My colleague and I, we've looked at what's happened in other states and some of the things they did right and some things that they did wrong so that we wouldn't make the mistakes that have happened in other states.

We want to get this right for the state, because this is where we live, where I raise my children and my grandchildren.

I want this to be right for our state.

-And at that hearing, when Warner Brothers spoke, Warner Brothers Discovery, Simon Robinson said that they spend about $20 billion a year on content.

And so the financial commitment that they have to make as part of this bill is going to be easy for them to make.

They also said that their studios in Burbank and in the UK, well, they just don't have enough space to accommodate everything they want to do.

So with all of that said, it begs the question: Do they need Nevada more than Nevada needs them?

Should they be getting this much of a tax credit break?

-I'm not going to say that they need Nevada more than Nevada needs them.

I'm going to say it's a partnership.

I see where we, all industries involved, we all benefit from this.

Yes, do they need to have a studio closer to home, to Hollywood?

Yes, they do, and Nevada is the perfect spot for that.

Does Nevada need to diversify our economy and bring in another industry that will create jobs for for our constituents, but also will help grow the pie, because we have a small pie when it comes to budgeting, help to grow that pie so that we can have a more impactful effect in the programming that we supply as legislators to our constituents?

Yes.

So it's-- I believe it's an equal partnership, where we both benefit.

-And it's important for people to know that they aren't receiving a tax credit until production has been complete.

So not a single tax credit is going to be given until a film or a sitcom series has been completely produced, meaning they've generated production dollars in our state, put Nevadans to work, you know, spent money in our small businesses.

And after that, they are going to go through an audit to make sure that they're meeting all of the requirements and guardrails that my copresenter and I put in, meaning they have to put Nevadans to work.

There's a 50% requirement that 50% of this people getting put to work have to be from Nevada, and there's also a diversity requirement.

And so again, it is a partnership, just like my copresenter said.

-So what are the biggest sticking points you're hearing right now that you're working on?

-It's telling the story.

A number of people in Nevada didn't even know that we currently have a film tax credit on the books.

This is an expansion of the current tax credit.

It's nothing new.

We have it, and we have some amazing small filmmakers in our state.

So it's an expansion of that.

I think our biggest hurdle has been telling the story, explaining the story of this is an industry that's alive and well in Nevada, and this just grows that industry so that it's accessible to more people, bringing in dollars that we don't have in the state, and using those dollars, not just for education, to help us fund education, but looking at the cuts that we're doing, may have to do for healthcare, we'll have more money within this state to deal with the day-to-day issues that families have to deal with that the state has a responsibility to help them in.

And this will help us get there.

-Assembly Member Jauregue, what would a vote of no mean?

What would that be sending as a message?

-My copresenter said this during the hearing, but Nevada could be home to the next Denzel Washington and Steven Spielberg.

And we don't know, because you know where they go?

They are leaving the state.

They're getting educated here in this industry and leaving the state to go work because we don't have the industry infrastructure.

And that's what we're trying to bring.

We're trying to keep our talent here at home.

We're trying to create 18,000 permanent jobs that are six-figure paying jobs that Nevadans can raise a family on, send their kids to college on, have enough money left over to have brunch with the girls or beer with the guys on Sunday.

And we're creating 19,000 construction jobs before the studios are even complete.

And that's what it's about, right?

It's about knowing Nevadans need to be put to work, need work, and we're bringing an industry that's creating those jobs for them.

-Assembly Member Monroe-Moreno, I remember you saying that there could be a Denzel Washington coming out of Nevada, and it's part of why you have been working to bring the arts aspect back into the STEM education.

It's been STEM, referred to as STEM as of late, but it's really STEAM.

-It is.

-Why is that important?

-I was the choir kid, and my sister was in theater.

I love that.

Our kids need those opportunities, but now these opportunities will go far outside the classroom, actually into a career, a career that they can have right here in Nevada, be with their families, and like my colleague said, have a, not just a job, but a career where they can have that home that everyone dreams of.

And you said, What would a no vote mean?

It would mean a lost opportunity for those kids.

That's what a no vote means.

-And AB 238 is not the only bill that looks to expand Nevada's film tax credit program this session.

Senator Roberta Lang is the sponsor of Senate Bill 220, which promises film tax credits in exchange for the construction of a film and production campus on land that UNLV owns.