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April 27, 2022 HB 22-1408
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-1026
Rep. Herod
Date:
Bill Status:
Fiscal Analyst:
April 27, 2022
House Business
Louis Pino | 303-866-3556
louis.pino@state.co.us
Bill Topic: MODIFY PERFORMANCE -BASED INCENTIVE FOR FILM PRODUC TION
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☒ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill creates the Film Incentive Task Force and allows the executive director of the
Office of Economic Development to approve incentives exceeding the current limit for
qualified production companies. The bill makes a one-time fund transfer, and it will
increase state expenditures in FY 2022-23 only.
Appropriation
Summary:
For FY 2022-23, the bill requires appropriations of $2,002,131 to multiple state
agencies.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 22-1408
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue - -
Expenditures General Fund $2,131 -
Cash Funds $2,000,000
Centrally Appropriated $189 -
Total Expenditures $2,002,320 -
Transfers General Fund ($2,000,000) -
Cash Funds $2,000,000 -
Net Transfer $0 -
Other Budget Impacts General Fund Reserve $320 -
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April 27, 2022 HB 22-1408
Summary of Legislation
The bill creates the Film Incentive Task Force to conduct a study and prepare a report with
recommendations on how to make the performance-based incentive for film production in Colorado
more effective. The task force will include two members from the House of Representatives,
two members from the Senate, one representative of the Motion Picture Association, one
representative of the film and television production sector, and the Director of the Office of Film,
Television, and Media within the Colorado Office of Economic Development. The four legislative
members are entitled to per diem compensation, while the non-legislative representatives serve
without compensation. The task force is required to submit its report to the legislature by no later
than January 1, 2023. The bill requires the Office of Economic Development to provide staff services
to the task force.
The bill also allows the Executive Director of the Office of Economic Development to authorize the
approval or issuance of an incentive in an amount that exceeds the current statutory limit of 20 percent
of qualifying local expenditures for a production company at the director’s discretion.
Finally, the bill transfers $2.0 million from the General Fund to the Colorado Office of Film, Television,
and Media Operational Account Cash Fund for use or use in awarding performance-based incentives
for film production in Colorado and for the loan guarantee program to finance production activities.
Background
The Colorado Film, Television, and Media Performance-Based Incentive encourages film production
in Colorado with a performance-based rebate for up to 20 percent of qualified expenses. To qualify,
all production companies need to hire at least 50 percent local cast and crew. Colorado production
companies need to have at least $100,000 in qualified local expenses, while out-of-state production
companies need to have at least $1 million in qualified local expenses, except if they are producing
television commercials and video game productions. Those productions need to have at least $250,000
in qualified local expenses.
State Transfers
The bill transfers $2.0 million from the General Fund to the Colorado Office of Film, Television, and
Media Operational Account Cash Fund. The transfer is assumed to occur on July 1, 2022; see Technical
Note.
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April 27, 2022 HB 22-1408
State Expenditures
The bill increases state cash fund expenditures in the Office of Economic Development by $2,000,000
and General Fund expenditures in the Legislative Department by $2,320 in FY 2022-23. Expenditures
are shown in Table 3 and detailed below.
Table 2
Expenditures Under HB 22-1408
FY 2022-23 FY 2023-24
Office of Economic Development
Film Incentives $2,000,000 -
OEDIT Subtotal $2,000,000 -
Legislative Department
Per Diems and Expense Reimbursements $2,131 -
Centrally Appropriated Costs
1
$189 -
Legislative Dept. Subtotal $2,320 -
Total Cost $2,002,320 -
Centrally appropriated costs are not included in the bill's appropriation.
Office of Economic Development. In FY 2022-23, office expenditures will increase by $2 million to
provide film incentives utilizing existing staff and to provide staff services to the task force as required
by the bill. This workload can be accomplished within existing appropriations.
Legislative Department. It is assumed that four members of the legislature will participate in four
meetings of the task force before January 1, 2023, and will not meet after.
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs associated
with this bill are addressed through the annual budget process and centrally appropriated in the Long
Bill or supplemental appropriations bills, rather than in this bill. Because legislative per diem is
accounted for like salary, centrally appropriated costs will increase for supplemental employee
retirement payments as shown in Table 2.
Other Budget Impacts
General Fund reserve. Under current law, an amount equal to 15 percent of General Fund
appropriations must be set aside in the General Fund statutory reserve beginning in FY 2022-23. Based
on this fiscal note, the bill is expected to decrease the amount of General Fund held in reserve by $320
in FY 2022-23, which will increase the amount of General Fund available for other purposes.
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April 27, 2022 HB 22-1408
Technical Note
The bill transfers $2.0 million from the General Fund to the Colorado Office of Film, Television, and
Media Operational Account Cash Fund on July 1, 2023. It is assumed that this transfer will occur on
July 1, 2022.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
For FY 2022-23, the bill requires the following appropriations:
$2,000,000 from the Colorado Office of Film, Television, and Media Operational Account Cash
Fund to the Office of Economic Development; and
$2,131 from the General Fund to the Legislative Department.
State and Local Government Contacts
Legislative Council Staff Office of Economic Development
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.