STAND. COM. REP. NO. 806-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2959
                                     H.D. 3




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2959, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO THE ENTERTAINMENT INDUSTRY,"

begs leave to report as follows:

     The purpose of this bill is to assist Hawaii's television
and film industry to promote Hawaii to the world by:

     (1)  Establishing the Hawaii Television and Film Development
          Special Fund (Special Fund) to provide grants and loans
          to assist in:

          (a)  The production of Hawaii projects;

          (b)  Attracting non-Hawaii based production companies
               to develop Hawaii projects; and

          (c)  Funding Hawaii projects under agreements with
               state and county agencies or other public or
               private organizations;

     (2)  Establishing the Hawaii Television and Film Development
          Loan Guarantee Indemnity Program (Program) to guarantee
          a certain amount of one or more qualified Hawaii
          project production loans as a means to facilitate
          access to capital for the production of entertainment
          in Hawaii;


 
 
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     (3)  Establishing the Hawaii Television and Film Development
          Board to administer the Special Fund and the Program;

     (4)  Appropriating moneys out of the general fund to be
          deposited into the Special Fund; and

     (5)  Authorizing the Director of Finance to issue general
          obligation bonds for the purposes of the bill.

     The Department of Business, Economic Development, and
Tourism, the Honolulu Film Office, the Hawaii Stunt Association,
and the Screen Actors Guild testified in support of the intent of
the measure.  The Department of Taxation, the Tax Foundation of
Hawaii, and several individuals submitted comments on this
measure.

     Your Committee has amended this bill by:

     (1)  Requiring the Senate President and the Speaker of the
          House to appoint three members each, rather than two
          members each, to the Board;

     (2)  Specifying that four members, rather than three
          members, shall constitute a quorum of the Board;

     (3)  Deleting the percentage amount of the income tax credit
          for costs incurred in the State in the production of
          motion picture or television films;

     (4)  Making the appropriation for deposit into the Special
          Fund from the Tourism Special Fund, rather than from
          the general fund and from general obligation bond
          authorizations;

     (5)  Stipulating that the appropriation out of the Tourism
          Special Fund for fiscal year 2000-2001 be a sum equal
          to any transient accommodations tax revenues deposited
          into the Tourism Special Fund during fiscal year 1999-
          2000 that are in excess of the $60,000,000 special fund
          ceiling established in part II, section 3, item A2 of
          Act 91, Session Laws of Hawaii 1999; and

     (6)  Making technical, nonsubstantive amendments for
          clarity, consistency, and style.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2959, H.D. 2, as amended herein, and recommends that it pass

 
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                                 Page 3

 
Third Reading in the form attached hereto as H.B. No. 2959, H.D.
3.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair