Bill Analysis — HB 1914, Updating and expanding the motion picture competitiveness program

Summary

Office of Program Research bill analysis for the Community & Economic Development Committee on HB 1914, updating and expanding the motion picture competitiveness program, with Hearing Date 1/25/22. The Brief Summary says the bill modifies the membership of the board of directors of the Motion Picture Competitiveness Program and adds supporting the growth of the state film industry as an allowable use of funding assistance. It increases the total statewide Business and Occupation (B&O) tax credit limit for Program contributions from $3.5 million to $20 million per calendar year, and the limit one person may claim from $750,000 to $1 million. It lists Appropriation: None and an effective date 90 days after adjournment of the session in which the bill is passed.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Washington State                 BILL
House of Representatives
Office of Program Research  ANALYSIS
Community & Economic Development
Committee
                                        HB 1914
Brief Description: Updating and expanding the motion picture competitiveness program.

Sponsors: Representatives Riccelli, Orcutt, Berry, Leavitt, McEntire, Ryu, Santos, Walen,
    Wicks, Ortiz-Self, Stonier, Robertson, Peterson, Rule, Vick, Goodman, Dolan, Orwall,
    Eslick, Barkis, Graham, Berg, Dent, Bateman and Macri.


                                     Brief Summary of Bill
          • Modifies the membership of the board of directors of the Motion Picture
            Competitiveness Program (Program).
          • Adds supporting the growth and development of the state film industry
            as an allowable use of Program funding assistance.
          • Increases the total statewide Business and Occupation (B&O) tax credit
            limit for Program contributions from $3.5 million to $20 million per
            calendar year.
          • Increases the B&O tax credit limit one person may claim for Program
            contributions from $750,000 to $1 million per calendar year.


Hearing Date: 1/25/22

Staff: Cassie Jones (786-7303).

Background:

The Motion Picture Competitiveness Program (Program) was created by the Legislature in 2006
for the stated purpose of creating a partnership with the private sector to regain Washington's




     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.

House Bill Analysis                             -1-                                         HB 1914
place as a premier destination to make motion pictures, television, and television commercials.
The Program must be overseen by a nonprofit organization with the sole purpose of revitalizing
the state's economic, cultural, and educational standing in the national and international market
of motion picture production and associated creative industries.

Washington Filmworks (Filmworks) is the private nonprofit that oversees the Program and
manages its incentive program. Filmworks must be administered by a board of directors (Board)
appointed by the Governor. 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;
   • two members representing labor unions affiliated with Washington motion picture
      production; and
   • a chairperson, chosen at large.

The Board must evaluate and award financial assistance to motion picture projects under rules
adopted by the Department of Commerce (Commerce). Money received by the Program may
only be used for:
   • benefits for employees and other costs associated with film production; and
   • staff and related expenses to maintain the Program's proper administration and operation.

In return for contributing to the Program's incentive fund, a person may receive a credit against
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.

Each motion picture production receiving funding assistance under the Program must report
information to Commerce by filing a complete annual survey. The survey must include
information on taxes paid, amount of funding assistance received, and employment and wage
data. A person claiming a tax credit for contributions made to the Program must file an annual
report with the Department of Revenue (DOR). The report must include employment and wage
data, among other information.

Summary of Bill:

The total statewide B&O tax credit limit for Program contributions is increased to $20 million
per calendar year. The B&O tax credit limit one person may claim for Program contributions is
increased to $1 million per calendar year.

An additional authorized use of Program funding assistance is supporting the growth and
development of the state film industry through career connected learning, workforce
development, and business development with a focus on better supporting people from


House Bill Analysis                            -2-                                         HB 1914
marginalized and rural communities.

Filmworks' Board membership is modified. The number of Board members is increased from
nine to 12 members. In addition to two labor representatives, and the chairperson, the Board
must include:
    • 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 the Program and receiving a tax credit, and not otherwise receiving
funding assistance under the Program, are exempt from DOR’s and Commerce’s annual
reporting requirements.

A tax preference performance statement that identifies the Legislature's public policy purpose
and intent for the Program tax credit is included. The Joint Legislative Audit and Review
Committee must review and make a recommendation to the Legislature regarding the
effectiveness of the Program by December 1, 2026.

Appropriation: None.

Fiscal Note: Requested on January 18, 2022.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is
passed.




House Bill Analysis                            -3-                                         HB 1914


File and source

File

2022-01-28_a29634_d238841_bill-analysis.pdf

Size

9,253 bytes

SHA-256

2044d6fd0e8f5275e10cf02540cd5d4d9c41d94f911ae9cacd721a979ad92a64

Our copy

2022-01-28_a29634_d238841_bill-analysis.pdf

Original

No public link identified.