WSR 06-12-107

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF COMMUNITY,

TRADE AND ECONOMIC DEVELOPMENT

[ Filed June 7, 2006, 9:26 a.m. ]

Subject of Possible Rule Making: SB 6558 created the motion picture competitiveness program with the purpose of revitalizing the state's standing in the national market of motion picture production. A motion picture competitiveness fund is created, and capped at total assistance of $3.5 million. Oversight of the fund is by an eight member board appointed by the governor. Maximum funding assistance is 20% of actual investment in the state by a production company. No one production may receive more than one million dollars. Thresholds of spending are established for feature films, television and commercials.

Statutes Authorizing the Agency to Adopt Rules on this Subject: Chapter 247, Laws of 2006.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Rules adopted by the department shall allow the program within the established criteria, to provide funding assistance when it captures economic opportunities for Washington's communities and businesses, and shall only be provided under contractual arrangement with a private entity. Section 3(1) states that the department of community, trade and economic development (CTED) shall adopt criteria or rules, which will be used by the motion picture competitiveness program board to provide funding assistance to companies who have demonstrated an investment as described in (2). This section describes the types of activities the department should consider when developing the criteria. The rules must be developed by June 30, 2006.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Under a new section to chapter 82.04 RCW - effective June 7, 2006, 2SSB 6558 establishes a business and occupation (B&O) tax credit for persons who make cash contributions to an improved motion picture competitiveness program. The department of revenue will have oversight to this part of the legislation.

Process for Developing New Rule: Agency study.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Marie Sullivan, 128 10th Avenue S.W., 5th Floor, Olympia, WA 98504-2525, phone (360) 725-4010, fax (360) 586-8440, maries@cted.wa.gov.

June 7, 2006

Marie Sullivan

Director of Government Relations

Washington State Code Reviser's Office