Fiscal Note - Motion picture program, Bill 1914 HB (Final 1/21/2022)
Summary
Multiple agency fiscal note summary for Bill Number 1914 HB, titled Motion picture program, published Final 1/21/2022. The Department of Revenue is shown with estimated cash receipts of (16,500,000) for 2021-23 and (33,000,000) in each of 2023-25 and 2025-27. Its estimated operating expenditures are 0.1 FTE with 14,400 for 2021-23 and 18,200 for each later period, while the Joint Legislative Audit and Review Committee and the Department of Commerce show zeros. The Joint Legislative Audit and Review Committee individual note reads "X No Fiscal Impact", with Cassie Jones as legislative contact and Dana Lynn for agency preparation dated 01/19/2022.
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Cite this document
“Fiscal Note - Motion picture program, Bill 1914 HB (Final 1/21/2022).”
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Multiple Agency Fiscal Note Summary
Bill Number: 1914 HB Title: Motion picture program
Estimated Cash Receipts
Agency Name 2021-23 2023-25 2025-27
GF-State NGF-Outlook Total GF-State NGF-Outlook Total GF-State NGF-Outlook Total
Department of (16,500,000) (16,500,000) (16,500,000) (33,000,000) (33,000,000) (33,000,000) (33,000,000) (33,000,000) (33,000,000)
Revenue
Total $ (16,500,000) (16,500,000) (16,500,000) (33,000,000) (33,000,000) (33,000,000) (33,000,000) (33,000,000) (33,000,000)
Estimated Operating Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Joint Legislative .0 0 0 0 .0 0 0 0 .0 0 0 0
Audit and Review
Committee
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Commerce
Department of .1 14,400 14,400 14,400 .1 18,200 18,200 18,200 .1 18,200 18,200 18,200
Revenue
Total $ 0.1 14,400 14,400 14,400 0.1 18,200 18,200 18,200 0.1 18,200 18,200 18,200
Estimated Capital Budget Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Joint Legislative Audit .0 0 0 .0 0 0 .0 0 0
and Review Committee
Department of Commerce .0 0 0 .0 0 0 .0 0 0
Department of Revenue .0 0 0 .0 0 0 .0 0 0
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
Estimated Capital Budget Breakout
NONE
FNPID 63814
:
FNS029 Multi Agency rollup
Prepared by: Cheri Keller, OFM Phone: Date Published:
(360) 584-2207 Final 1/21/2022
FNPID 63814
:
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note
Bill Number: 1914 HB Title: Motion picture program Agency: 014-Joint Legislative Audit
and Review Committee
Part I: Estimates
X No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
NONE
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact . Factors impacting the precision of these estimates ,
and alternate ranges (if appropriate ), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50 ,000 per fiscal year in the current biennium or in subsequent biennia , complete entire fiscal note
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia , complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Cassie Jones Phone: 360-786-7303 Date: 01/18/2022
Agency Preparation: Dana Lynn Phone: 360-786-5177 Date: 01/19/2022
Agency Approval: Keenan Konopaski Phone: 360-786-5187 Date: 01/19/2022
OFM Review: Gaius Horton Phone: (360) 819-3112 Date: 01/19/2022
Form FN (Rev 1/00) 172,562.00 Request # 14-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1914 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe by section number , the significant provisions of the bill , and any related workload or policy assumptions , that have revenue or
expenditure impact on the responding agency .
This bill creates amends current statute to make several changes to the motion picture competitiveness program and the
B&O tax credit associated with it.
Section 1 amends RCW 43.365.005 regarding legislative intent, adding the Legislature finds more investment in the film
industry will increase revenue and create family-wage jobs with benefits. With more investment in the film industry, the
state would attract bigger budget productions which would drive creation of more film support businesses and increase the
labor force as the state builds capacity.
Section 2 amends RCW 43.365.030 to change the composition and term limits for the WA motion picture competitiveness
program board of directors.
Section 3 amends RCW 43.365.020 to add that money received for the program will be used to support growth and
development through career connected learning, workforce development, and business development with a focus on better
supporting people in marginalized or rural communities.
Section 4 amends the B&O tax credit established in RCW 82.04.4489 to :
• Increase the maximum per-person B&O tax credit amount from $750,000 to $1 million per calendar year, or an amount
equal to 100% of the contributions made.
• Increase the total amount of credits available per calendar year from $3.5 million to $20 million.
• Allow persons making contributions to the program and not otherwise receiving funding under RCW 43.365.020 to be
exempt from filing the annual reporting requirements under RCW 82.32.534 and 43.365.040.
Section 5 amends RCW 43.365.040 to note JLARC will perform a review of the tax preference and program as required
under RCW 43.365.050 and that the motion picture competitiveness program must periodically audit and generally monitor
the survey information collected from production companies for completeness and accuracy.
Section 6 amends RCW 43.365.050 to add a specific public policy objective to increase the viability of the motion picture
and film industry and associated creative industry in the state. The Legislature’s intent is to increase the B&O tax credit in
order to attract more motion picture and film projects, thereby increasing family wage jobs.
JLARC is instructed to make a recommendation to the fiscal committees of the Legislature by December 1, 2026, regarding
the effectiveness of the program including, but not limited to:
• The amount of state revenue generated.
• The amount and number of family-wage jobs with benefits created.
• Adherence to criteria in RCW 43.365.020.
• Changes in Washington’s share of the film employment market.
• Any other factors deemed appropriate.
JLARC is to refer to tax data collected by the Department of Revenue and the annual survey data required under RCW
43.365.040.
Section 7 repeals 2017 3rd sp. S. c 37 s 1101 (uncodified).
The bill does not provide an effective date. The date after which credit can no longer be earned remains July 1, 2027.
Motion picture program 014-Joint Legislative Audit and Review Committee
Form FN (Rev 1/00) 172,562.00 Request # 14-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1914 HB
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency , identifying the cash receipts provisions by section number
and when appropriate the detail of the revenue sources . Briefly describe the factual basis of the assumptions and the method by which the cash receipts
impact is derived. Explain how workload assumptions translate into estimates . Distinguish between one time and ongoing functions .
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation ), identifying by section number the
provisions of the legislation that result in the expenditures (or savings ). Briefly describe the factual basis of the assumptions and the method by which the
expenditure impact is derived . Explain how workload assumptions translate into cost estimates . Distinguish between one time and ongoing functions .
The bill modifies the existing motion picture competitiveness program and B&O tax credit tax. JLARC is already scheduled
to review that preference in 2025. Therefore, this bill creates no additional expenditures on top of those currently
anticipated.
This audit will require an estimated 0 audit months.
JLARC Audit Months: JLARC calculates its staff resources in "Audit Months" to estimate the time and effort to undertake
and complete its studies. An "Audit Month" reflects a JLARC analyst’s time for a month, together with related
administrative, support, and goods/services costs. JLARC’s anticipated 2021-23 costs are calculated at approximately
$21,000 per audit month.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
NONE
III. B - Expenditures by Object Or Purpose
NONE
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation . Totals need to agree with total FTEs in
Part I and Part IIIA
Job Classification Salary FY 2022 FY 2023 2021-23 2023-25 2025-27
Research Analyst 119,519
Support staff 81,590
Total FTEs 0.0
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation . Totals need to agree with total FTEs in
Part I and Part IIIA
NONE
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
Motion picture program 014-Joint Legislative Audit and Review Committee
Form FN (Rev 1/00) 172,562.00 Request # 14-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1914 HB
NONE
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation . Totals need to agree with total FTEs in
Part IVB
NONE
Part V: New Rule Making Required
Motion picture program 014-Joint Legislative Audit and Review Committee
Form FN (Rev 1/00) 172,562.00 Request # 14-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 1914 HB
Individual State Agency Fiscal Note
Bill Number: 1914 HB Title: Motion picture program Agency: 103-Department of Commerce
Part I: Estimates
X No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
NONE
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact . Factors impacting the precision of these estimates ,
and alternate ranges (if appropriate ), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50 ,000 per fiscal year in the current biennium or in subsequent biennia , complete entire fiscal note
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia , complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Cassie Jones Phone: 360-786-7303 Date: 01/18/2022
Agency Preparation: Karen McArthur Phone: 360-725-4027 Date: 01/19/2022
Agency Approval: Joyce Miller Phone: 360-725-2710 Date: 01/19/2022
OFM Review: Cheri Keller Phone: (360) 584-2207 Date: 01/21/2022
Form FN (Rev 1/00) 172,328.00 Request # 078-700-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1914 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe by section number , the significant provisions of the bill , and any related workload or policy assumptions , that have revenue or
expenditure impact on the responding agency .
Section 2 amends RCW 43.365.030 adding additional members to the motion picture competitiveness program board and
increases a quorum from five to seven.
Section 3 amends RCW 43.365.020 adding in (3)(c ) supporting the growth and development of the state's film industry in
rural communities.
Section 4 amends RCW 82.04.4489 increasing the maximum credit claim limit from $750,000 to $1,000,000 during a
calendar year.
Section 4(6) increases the total credit claimed from $3,500,000 to $20,000,000.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency , identifying the cash receipts provisions by section number
and when appropriate the detail of the revenue sources . Briefly describe the factual basis of the assumptions and the method by which the cash receipts
impact is derived. Explain how workload assumptions translate into estimates . Distinguish between one time and ongoing functions .
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation ), identifying by section number the
provisions of the legislation that result in the expenditures (or savings ). Briefly describe the factual basis of the assumptions and the method by which the
expenditure impact is derived . Explain how workload assumptions translate into cost estimates . Distinguish between one time and ongoing functions .
There is no impact to the department. The activities stated in HB 1914 are already part of the normal operating procedures
within the Office of Economic Development and Competitiveness within the department.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
NONE
III. B - Expenditures by Object Or Purpose
NONE
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation . Totals need to agree with total FTEs in
Part I and Part IIIA
NONE
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
Motion picture program 103-Department of Commerce
Form FN (Rev 1/00) 172,328.00 Request # 078-700-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1914 HB
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
NONE
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation . Totals need to agree with total FTEs in
Part IVB
NONE
Part V: New Rule Making Required
Motion picture program 103-Department of Commerce
Form FN (Rev 1/00) 172,328.00 Request # 078-700-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1914 HB
Department of Revenue Fiscal Note
Bill Number: 1914 HB Title: Motion picture program Agency: 140-Department of
Revenue
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
Account FY 2022 FY 2023 2021-23 2023-25 2025-27
GF-STATE-State (16,500,000) (16,500,000) (33,000,000) (33,000,000)
01 - Taxes 06 - Tax Credits - B & O
Total $ (16,500,000) (16,500,000) (33,000,000) (33,000,000)
Estimated Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.1 0.1 0.1 0.1
Account
GF-STATE-State 001-1 14,400 14,400 18,200 18,200
Total $ 14,400 14,400 18,200 18,200
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact . Factors impacting the precision of these estimates ,
and alternate ranges (if appropriate ), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50 ,000 per fiscal year in the current biennium or in subsequent biennia , complete entire fiscal note
X
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia , complete this page only (Part I).
X Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Cassie Jones Phone: 360-786-7303 Date: 01/18/2022
Agency Preparation: Van Huynh Phone: 360-534-1512 Date: 01/21/2022
Agency Approval: Valerie Torres Phone: 360-534-1521 Date: 01/21/2022
OFM Review: Cheri Keller Phone: (360) 584-2207 Date: 01/21/2022
Request # 1914-1-1
Form FN (Rev 1/00) 172,350.00 1 Bill # 1914 HB
FNS062 Department of Revenue Fiscal Note
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe, by section number, the significant provisions of the bill , and any related workload or policy assumptions , that have revenue or
expenditure impact on the responding agency .
CURRENT LAW:
Under the motion picture competitiveness program, a business and occupation (B&O) tax credit is available to those who make
contributions to a Washington motion picture competitiveness program.
The amount of credit claimed for a reporting period may not exceed the B&O tax otherwise due for that reporting period. No
person may claim more than $750,000 of credit in any calendar year, including credit carried over from a previous calendar year.
The maximum credit that may be earned for each calendar year for a person is limited to the lesser of $750,000 or an amount
equal to 100% of the contributions made by the person during the calendar year.
Tax credit earned but not claimed by the person in any calendar year may be carried over and claimed against the person's tax
liability for the next three succeeding calendar years.
The Department of Revenue (Department) must not allow any credits that would cause the total amount of credits claimed
during any calendar year to exceed $3.5 million (annual statewide cap).
No credit may be earned for contributions made on or after July 1, 2027.
PROPOSAL:
The bill amends RCW 82.04.4489 as follow :
- Increases the maximum amount of credit that can be claimed by a person in a calendar year from $750,000 to $1 million.
- Increases the maximum credit that may be earned in each calendar year for a person from $750,000 to $1 million.
- Increases the annual statewide credit cap from $3.5 million to $20 million.
The bill also states that those claiming the credit and not otherwise receiving funding assistance under an approved motion
picture competitiveness program are exempt from the annual reporting requirements in RCW 82.32.534 and 43.365.040.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency , identifying the cash receipts provisions by section
number and when appropriate the detail of the revenue sources . Briefly describe the factual basis of the assumptions and the method by which the
cash receipts impact is derived . Explain how workload assumptions translate into estimates . Distinguish between one time and ongoing functions .
ASSUMPTIONS
- The proposed statewide credit cap of $20 million will be reached annually. This assumption is based on, among other
factors, the amount of credit claimed historically, and the types of business that claimed the credit.
- It is assumed that the bill will be effective June 7, 2022.
DATA SOURCES
Department of Revenue excise tax returns
Request # 1914-1-1
Form FN (Rev 1/00) 172,350.00 2 Bill # 1914 HB
FNS062 Department of Revenue Fiscal Note
REVENUE ESTIMATES
Adopting this bill will result in state revenue loss of $16.5 million in Fiscal Year 2023 and $33.0 million in the 2023-25
Biennium.
TOTAL REVENUE IMPACT:
State Government (cash basis, $000):
FY 2022 - $
FY 2023 - ($16,500 )
FY 2024 - ($16,500)
FY 2025 - ($16,500)
FY 2026 - ($16,500)
FY 2027 - ($16,500)
Local Government, if applicable (cash basis, $000): Not applicable.
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation ), identifying by section
number the provisions of the legislation that result in the expenditures (or savings ). Briefly describe the factual basis of the assumptions and the method
by which the expenditure impact is derived . Explain how workload assumptions translate into cost estimates . Distinguish between one time and ongoing
ASSUMPTIONS:
This bill affects 20 taxpayers.
FIRST YEAR COSTS:
The Department will not incur costs in Fiscal Year 2022.
SECOND YEAR COSTS:
The Department will incur total costs of $14,400 in Fiscal Year 2023. These costs include :
Labor Costs - Time and effort equates to 0.1 FTEs.
- Assist additional taxpayers claiming the credit, answer questions, issue refunds and assessments.
- Set up, program and test computer system changes.
Object Costs - $4,400.
- Computer system changes, including contract programming.
ONGOING COSTS:
Ongoing costs for the 2023-2025 Biennium equal $18,200 and include similar activities described in the second year costs.
Time and effort equates to .01 FTEs.
Request # 1914-1-1
Form FN (Rev 1/00) 172,350.00 3 Bill # 1914 HB
FNS062 Department of Revenue Fiscal Note
Part III: Expenditure Detail
III. A - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.1 0.1 0.1 0.1
A-Salaries and Wages 6,000 6,000 12,000 12,000
B-Employee Benefits 2,100 2,100 4,200 4,200
C-Professional Service Contracts 4,400 4,400
E-Goods and Other Services 1,200 1,200 1,800 1,800
J-Capital Outlays 700 700 200 200
Total $ $14,400 $14,400 $18,200 $18,200
III. B - Detail: List FTEs by classification and corresponding annual compensation . Totals need to agree with total FTEs in Part I
and Part IIIA
Job Classification Salary FY 2022 FY 2023 2021-23 2023-25 2025-27
EXCISE TAX EX 3 59,688 0.1 0.1 0.1 0.1
Total FTEs 0.1 0.1 0.1 0.1
III. C - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and dexcribe potential financing methods
NONE
None.
Part V: New Rule Making Required
Request # 1914-1-1
Form FN (Rev 1/00) 172,350.00 4 Bill # 1914 HB
FNS062 Department of Revenue Fiscal Note
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