A BEST PICTURE NOMINEE -- HASBEEN MADE IN ARIZONA.

ANDTHERE'S A REASON WHY.

NINE ONYOUR SIDE'S TAJA DAVIS JOINSUS NOW -- TO EXPLAIN -- WE'RESTILL IN THE GAME -- JUST NOTHOW WE USED TO BE.

TAJA.PAT/VALERIE, WHEN WE THINK OFFILM IN SOUTHERN ARIZONA -- WEOFTEN THINK OF THE OLD TUCSONSTUDIOS -- AND MOVIES LIKE'TOMBSTONE' AND 'MAJORLEAGUE'.

BUT ITS BEEN YEARS --SINCE THE AREA HAS SEEN(MAJOR( HOLLYWOOD PRODUCTIONS.MATTHEW EARL JONES, DIRECTOR,ARIZONA FILM AND DIGITAL MEDIAPROGRAM"WELL FIRST OF ALL,ARIZONA'S HAD A WONDERFULHISTORY IN THE FILM INDUSTRY.AND OBVIOUSLY OLD TUCSONSTUDIOS AND LIKE 5,000 PLUSMOVIES AND PROJECTS HAVE BEENSHOT IN ARIZONA." WE TALKEDWITH MATTHEW EARL JONES -- THEDIRECTOR OF ARIZONA FILM ANDDIGITAL MEDIA... PETERCATALANOTTE -- THE DIRECTOR OFFILM TUCSON... AND DAVIDVALDEZ -- A MEMBER OF THEPRODUCTION CREW THAT WORKED ON'HEY DUDE' BACK IN THE 19-80SAND 90S.

ALL SHARE THESENTIMENT -- SOUTHERN ARIZONAFILM -- HASN'T BEEN THE SAMESINCE THE GOLDEN DAYS.

DAVIDVALDEZ, PRODUCTION MEMBER OF'HEY DUDE'"DURING THAT TIMEPERIOD THERE WAS QUITE A BITOF PRODUCTION IN TUCSON, FILMPRODUCTION I SHOULD SAY,BECAUSE OF OLD TUCSON." BUTARIZONA NOT HAVING FILMINCENTIVES AND TAX BREAKS --IS A MAJOR HALT -- IN BRINGINGIN HOLLYWOOD PRODUCTIONS.

TAKESOTDURATION:0:31 (((SOT(((<PETER CATALANOTTE, DIRECTOR,FILM TUCSON"IF ARIZONA HADFILM INCENTIVES, THAT ERACOULD COME BACK FOR US.

SOMEDIFFERENT GROUPS IN AZ HAVETRIED TO GET SOME FILMINCENTIVE BILLS INTRODUCED ANDWE JUST HAVEN'T BEEN ABLE TOGET THAT GOING.

THERE'S JUSTNOT A LOT OF SUPPORT RIGHT NOWFROM THE LEGISLATURE AND THEGOVERNOR.

SO RATHER THAN WAITAROUND, WE'RE LOOKING AT THETOP- TIER THINGS THAT BRINGTHE FILM MONEY HERE: REALITYSHOWS AND PRODUCTIONS FROMMEXICO." CATALANOTTE SAYS --AN M-T-V REALITY SHOW RECENTLYFILMED A SERIES AROUND THEBORDER REGION -- AND SPENT 2-POINT-4-MILLION- DOLLARS.

ANDA T-V SERIES OUT OF MEXICO --CALLED 'RUN COYOTE, RUN' --FILMED ITS FIRST TWO SEASONSBETWEEN MEXICO AND SOUTHERNARIZONA -- SPENDING A COMBINED5-POINT-3 MILLION.

PETERCATALANOTTE, DIRECTOR, FILMTUCSON"WHENEVER YOU AREWATCHING A FILM PRODUCTION ANDYOU SEE THE LONG CRAWL OFCREDITS, ALL THE NAMES THERE,THOSE ARE ALL JOBS.

THAT'SWHAT WE LOVE ABOUT THE FILMINDUSTRY BEING HERE.

THEY HIREA LOT OF PEOPLE AND THEY BRINGA LOT OF PEOPLE." A LOT OFPEOPLE -- THAT COULD BRING ASUBSTANTIAL BOOM TO OUR LOCALECONOMY -- IF WE ARE WORKINGWITH HOLLYWOOD BUDGETS.

BUTEVEN STILL -- THERE ARE INDEEDMILLIONS OF DOLLARS PUT INTOOUR ECONOMY -- BECAUSE OF THEFILM INDUSTRY ARIZONA HASRETAINED.

MATTHEW EARL JONES,DIRECTOR, ARIZONA FILM ANDDIGITAL MEDIA PROGRAM"OURNICHE IS PROJECTS THAT ARE 20MILLION DOLLARS AND DOWN,COMMERCIALS, INDEPENDENTFEATURES, PHOTO SHOOTS, MUSICVIDEOS." //BUTT// PETERCATALANOTTE, DIRECTOR, FILMTUCSON"SO REALITY SHOWS ANDSHOWS FROM MEXICO ARE REALLYIMPORTANT TO US BECAUSETHEY'RE NOT DEPENDING ON TAXINCENTIVES.

THEY CAN FILM HEREWITHOUT HAVEN'T TO WORRY ABOUTAPPLYING FOR TAX BREAKS THATMOST STATES OFFER.

AND SO, WEWANT TO LURE MORE OF THOSEHERE." WHEN FILMS ARE SHOTHERE -- CATALONTTE SAYS -- ITSLIKE A DIGITAL POSTCARD FORFOLKS ALL OVER THE WORLD TOSEE JUST HOW BEAUTIFULSOUTHERN ARIZONA IS.

ITSANOTHER FORM -- OF TOURISM.DAVID VALDEZ, PRODUCTIONMEMBER OF 'HEY DUDE'"YOU HAVETO UNDERSTAND THAT, WHEN YOUCOME TO TUCSON TO SHOOT, OR INSOUTHERN ARIZONA, YOU'RECOMING FOR THE LANDSCAPE.THERE'S NO OTHER PLACE LIKETUCSON AND ITS SURROUNDINGS INTHE WORLD.

YOU COME FOR THESAGUAROS, YOU COME FOR THEWEATHER."SOUTHERN ARIZONA HAS THESCENERY -- THE SPACE -- THECREWS... INDUSTRY BUFFS SAY --WHAT'S LEFT -- IS UP TO THESTATE GOVERNMENT... BRINGINGBACK FILM INCENTIVES -- SOBIG-BUDGET FILM COMPANIES WILLBE LURED TO THE GRAND CANYONSTATE.

TAJA DAVIS, KGUN9OYS.FUNDING FOR PARKS -- COULD BE