REPORT TITLE:
HI. Film Prod. Dev.


DESCRIPTION:
Establishes State of Hawaii film development fund within
department of business, economic development, and tourism.
Excludes from use tax the use of material, parts, tools, or
equipment used in an entertainment industry production facility
or in its construction.  Appropriates $.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3020
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO FILM PRODUCTION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 201, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§201-     State of Hawaii film development fund;
 
 5 established.  There is established the State of Hawaii film
 
 6 development fund into which shall be deposited all moneys that
 
 7 may be appropriated by the legislature, received in repayment of
 
 8 loan principal, payment of interest, or fees, or that may be
 
 9 loaned by the department of business, economic development, and
 
10 tourism under this section.  All moneys shall be used to fund and
 
11 assist independent filmmakers in Hawaii to produce films in the
 
12 State, to attract independent filmmakers outside of Hawaii to
 
13 produce films in Hawaii using primarily local creative and
 
14 technical personnel, and to fund Hawaii film projects under
 
15 agreements with any state or county agency or other public or
 
16 private organizations.  The department may use all appropriations
 
17 and other moneys in the development fund not appropriated for a
 
18 designated purpose to make loans."
 
19      SECTION 2.  Section 238-1, Hawaii Revised Statutes, is
 

 
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 1 amended by amending the definition of "use" to read as follows:
 
 2      ""Use" (and any nounal, verbal, adjective, adverbial, and
 
 3 other equivalent form of the term) herein used interchangeably
 
 4 means any use, whether the use is of such nature as to cause the
 
 5 property to be appreciably consumed or not, or the keeping of the
 
 6 property for such use or for sale, and shall include the exercise
 
 7 of any right or power over tangible personal property incident to
 
 8 the ownership of that property, but the term "use" shall not
 
 9 include:
 
10      (1)  Temporary use of property, not of a perishable or
 
11           quickly consumable nature, where the property is
 
12           imported into the State for temporary use (not sale)
 
13           therein by the person importing the same and is not
 
14           intended to be, and is not, kept permanently in the
 
15           State (as for example without limiting the generality
 
16           of the foregoing language:  (A) in the case of a
 
17           contractor importing permanent equipment for the
 
18           performance of a construction contract, with intent to
 
19           remove, and who does remove, the equipment out of the
 
20           State upon completing the contract; (B) in the case of
 
21           moving picture films imported for use in theaters in
 
22           the State with intent or under contract to transport
 
23           the same out of the State after completion of such use;
 

 
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 1           (C) in the case of a transient visitor importing an
 
 2           automobile or other belongings into the State to be
 
 3           used by the transient visitor while therein but which
 
 4           are to be used and are removed upon the transient
 
 5           visitor's departure from the State);
 
 6      (2)  Use by the taxpayer of property acquired by the
 
 7           taxpayer solely by way of gift;
 
 8      (3)  Use which is limited to the receipt of articles and the
 
 9           return thereof, to the person from whom acquired,
 
10           immediately or within a reasonable time either after
 
11           temporary trial or without trial;
 
12      (4)  Use of goods imported into the State by the owner of a
 
13           vessel or vessels engaged in interstate or foreign
 
14           commerce and held for and used only as ship stores for
 
15           the vessels;
 
16      (5)  The use or keeping for use of household goods, personal
 
17           effects, and private automobiles imported into the
 
18           State for nonbusiness use by a person who (A) acquired
 
19           them in another state, territory, district, or country,
 
20           (B) at the time of the acquisition was a bona fide
 
21           resident of another state, territory, district, or
 
22           country, (C) acquired the property for use outside the
 
23           State, and (D) made actual and substantial use thereof
 

 
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 1           outside this State; provided that as to an article
 
 2           acquired less than three months prior to the time of
 
 3           its importation into the State it shall be presumed,
 
 4           until and unless clearly proved to the contrary, that
 
 5           it was acquired for use in the State and that its use
 
 6           outside the State was not actual and substantial;
 
 7      (6)  The leasing or renting of any aircraft or the keeping
 
 8           of any aircraft solely for leasing or renting to
 
 9           lessees or renters using the aircraft for commercial
 
10           transportation of passengers and goods;
 
11      (7)  The use of oceangoing vehicles for passenger or
 
12           passenger and goods transportation from one point to
 
13           another within the State as a public utility as defined
 
14           in chapter 269; [and]
 
15      (8)  The use of material, parts, or tools imported or
 
16           purchased by a person licensed under chapter 237 which
 
17           are used for aircraft service and maintenance, or the
 
18           construction of an aircraft service and maintenance
 
19           facility as those terms are defined in section
 
20           237-24.9[.]; and
 
21      (9)  The use of material, parts, tools, or equipment
 
22           imported or purchased by a person licensed under
 
23           chapter 237 that are used in an entertainment industry
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1           production facility or the construction of an
 
 2           entertainment industry production facility.  For
 
 3           purposes of this paragraph, "entertainment industry
 
 4           production facility" means a facility on not less than
 
 5           one hundred acres including production and ancillary
 
 6           facilities for motion picture production and television
 
 7           production, such as sound stages, sound studios, a
 
 8           backlot, warehouse space, and related administrative
 
 9           and employee space.
 
10      With regard to purchases made and distributed under the
 
11 authority of chapter 421, a cooperative association shall be
 
12 deemed the user thereof."
 
13      SECTION 3.  There is appropriated out of the general
 
14 revenues of the State of Hawaii the sum of $          , or so
 
15 much thereof as may be necessary for fiscal year 2000-2001 to be
 
16 paid into the State of Hawaii film development fund created in
 
17 section 1 of this Act.
 
18      SECTION 4.  There is appropriated out of the general
 
19 revenues of the State of Hawaii the sum of $          , or so
 
20 much thereof as may be necessary for fiscal year 2000-2001 to
 
21 assist film companies in the production of feature or documentary
 
22 films relating to the State of Hawaii.
 
23      SECTION 5.  There is appropriated out of the general
 

 
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 1 revenues of the State of Hawaii the sum of $          , or so
 
 2 much thereof as may be necessary for fiscal year 2000-2001, for
 
 3 coproduction costs of locally produced programming that achieves
 
 4 national or international recognition and can serve multiple
 
 5 tourism, marketing, and income-producing objectives.
 
 6      SECTION 6.  The sums appropriated in sections 3, 4, and 5
 
 7 shall be expended by the department of business, economic
 
 8 development, and tourism for the purposes of this Act.
 
 9      SECTION 7.  The department of business, economic
 
10 development, and tourism shall submit a report on the expenditure
 
11 of these funds to the legislature no later than twenty days prior
 
12 to the convening of the regular session of 2001.
 
13      SECTION 8.  Statutory material to be repealed is bracketed.
 
14 New statutory material is underscored.
 
15      SECTION 9.  This Act shall take effect on July 1, 2000.
 
16 
 
17                           INTRODUCED BY:  _______________________