Senate Bill Report SB 5760 — Motion Picture Competitiveness Program (as of January 16, 2022)

Summary

Senate Bill Report on SB 5760, as of January 16, 2022, for the Senate Committee on Business, Financial Services & Trade, with committee activity 1/18/22; the sponsors include Senators Wellman, Frockt and Conway. The bill concerns updating and expanding the motion picture competitiveness program. Its brief summary increases the Business and Occupation (B&O) tax credits that may be taken per year per business entity from $750,000 to $1 million, increases the total taken annually from $3.5 million to $20 million, modifies the board membership of the Washington Motion Picture Competitiveness Program, and exempts certain contributing entities from certain annual reporting requirements. The background says the program was created by the legislature in 2002 and is overseen by the nonprofit Washington Filmworks.

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Issuer: Congressional materials
Document type: Report
Date: 2022-01-18
Case: 2022 01 18 A29483 D237690 Bill Report 5760 Sba Bfst 22

Cite this document

“Senate Bill Report SB 5760 — Motion Picture Competitiveness Program (as of January 16, 2022).” Original at app.leg.wa.gov, dated 2022-01-18. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-01-18-2022-01-18-a29483-d237690-bill-report-5760-sba-bfst-22/, SHA-256 5fa3377c75e40c55b53f871f3462e2afc3e476c157dc4d3d57dff7fc0bc78674.

Full text

SENATE BILL REPORT
SB 5760

As of January 16, 2022

Title: An act relating to updating and expanding the motion picture competitiveness program.

Brief Description: Updating and expanding the motion picture competitiveness program.

Sponsors: Senators Wellman, Frockt, Conway, Keiser, Liias, Lovelett, Nguyen, Rolfes, Short
and Wilson, C..

Brief History:
Committee Activity: Business, Financial Services & Trade: 1/18/22.

Brief Summary of Bill
• Increases the amount of Business and Occupation (B&O) tax credits that
may be taken per year, per business entity, from $750,000 to $1 million.
• Increases the total amount of B&O tax credits taken annually from $3.5
million to $20 million.
• Modifies the membership of the board of directors of the Washington
Motion Picture Competitiveness Program (Program).
• Exempts certain entities contributing to the Program and receiving a tax
credit from certain annual reporting requirements.

SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

Staff: Kellee Gunn (786-7429)

Background: Motion Picture Competitiveness Program and Washington Filmworks. The
motion picture competitiveness program (Program) was created by the legislature in 2002 to
help maintain Washington as a competitive location to film motion pictures, television, and
commercials. In return for contributing to the Program's incentive fund, a business may

This analysis was prepared by non-partisan legislative staff for the use of legislative
members in their deliberations. This analysis is not part of the legislation nor does it
constitute a statement of legislative intent.

Senate Bill Report -1- SB 5760
receive a credit against their Business and Occupations (B&O) tax liability up to $750,000
per year. The total amount that may be credited any calendar year is $3.5 million.

The Program is overseen by a nonprofit corporation, Washington Filmworks (Filmworks),
with a board of nine directors, appointed by the governor. Except for a chairperson, chosen
at large, the following must be represented on the board:
• one member of the Washington motion picture production industry;
• one member of the Washington motion picture postproduction industry;
• one member of the Washington interactive media or emerging motion picture
industry;
• one member representing Washington visitors and convention bureaus;
• one member representing the Washington tourism industry;
• one member representing the Washington restaurant, hotel, and airline industry; and
• two members representing labor unions affiliated with Washington motion picture
production.

The Department of Commerce (Commerce) is responsible for adopting criteria for the
Program, along with other rules. Money for the program may only be used for:
• benefits for employees, and other costs associated with film production; and
• operating and administrative costs.

Reporting Requirements. Those who contribute to the Program are subject to the annual
reporting requirement for tax preferences, collected by the Department of Revenue, and an
annual survey by Filmworks, and reported by Commerce. Both reports require employment
and wage data, among other information.

Summary of Bill: The total amount of B&O tax credits taken annually is increased to $20
million, and the amount of credit that may be taken per year per entity is increased to $1
million.

Filmworks' board membership is modified. The board must have:
• two members representing the Washington motion picture industry, with one
demonstrating expertise in motion picture financing;
• one member from the Washington interactive entertainment industry, not involved in
any aspect of the industry associated with gambling;
• one member representing technologies impacting the Washington emerging motion
picture industry;
• three members representing industries and businesses impacted by motion picture
production, two of whom must each represent a side of the Cascade Mountain range;
• a cochair of the board’s equity committee, as recommended to the board by the
Governor; and
• a cochair of the board’s advisory committee, as recommended by the Governor.

Entities contributing to Filmworks and receiving a tax credit, and not otherwise receiving

Senate Bill Report -2- SB 5760
funding assistance under the program, are exempt from DOR's and Commerce's annual
reporting requirements.

Appropriation: None.

Fiscal Note: Available.

Creates Committee/Commission/Task Force that includes Legislative members: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Senate Bill Report -3- SB 5760

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Our copy: 2022-01-18_a29483_d237690_bill-report-5760-sba-bfst-22.pdf
Original: app.leg.wa.gov