The proposed bill establishes the "Independent Theater Sponsorship Program" as a three-year pilot initiative aimed at providing financial support to independent theaters. This program is designed to assess the impact of sponsorship payments on the economic development of municipal business districts, with the goal of sustaining the viability of independent theaters and revitalizing local economies. The program will be administered by the economic development department, which will determine eligibility criteria for participants, including location within designated business districts and ownership status. Sponsorship payments will be tailored to each theater's financial situation, with a maximum limit of $2,000 per month.

Additionally, the bill includes provisions for the economic development department to create rules for application processes and to evaluate the program's fiscal impact. It mandates annual reporting to legislative committees on participant statistics and funding, culminating in a comprehensive report by October 1, 2029, detailing the program's outcomes and recommendations. The bill appropriates $1 million from the general fund for the program's implementation over the fiscal years 2027 to 2029, with any unspent funds reverting to the general fund at the end of the program. The effective date for the bill's provisions is set for July 1, 2026.