CONFERENCE COMMITTEE REPORT NO. 50

                            Honolulu, Hawaii
                                            , 2000

                            RE:   H.B. No. 37
                                  H.D. 1
                                  S.D. 2
                                  C.D. 1




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

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 37, H.D. 1, S.D. 2, entitled:

    "A BILL FOR AN ACT RELATING TO FILM PRODUCTION FUNDING,"

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this bill is to encourage film production in
Hawaii through the establishment of a special fund and through
tax incentives.

     Your Committee on Conference finds that film and television
productions in Hawaii provide an invaluable source of
advertisement and promotion for our State.  Over the last four
years, Hawaii's film and television industry has experienced
double-digit growth with annual production expenses of
$100,000,000 per year and contributions of $15,000,000 per year
in State tax revenues.  Within the next five to ten years, there
is the potential for Hawaii's film and television industry to

 
 
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grow to a $300,000,000 per year industry, generating $45,000,000
in tax revenues.

     To ensure that the State gains film and television exposure,
it is essential to provide film and television producers with
incentives and assistance to encourage them to produce their
projects in Hawaii.

     Your Committee on Conference finds that Hawaii's local film
and television industry performs a vital role in the State by
furthering cultural and artistic expression as well as providing
a strong foundation for the financial future of Hawaii.

     Your Committee on Conference finds that the most effective
way to support Hawaii's film and television industry is to
provide incentives to both in-state and out-of-state film and
television productions by establishing grant and venture capital
programs.

     Upon careful consideration, your Committee on Conference has
amended this bill by:

     (1) Deleting the tax incentives;

     (2) Renaming the special fund to "Hawaii Television and Film
         Development Special Fund" (Fund);

     (3) Establishing the Hawaii Television and Film Development
         Board (Board) which shall administer the Fund;

     (4) Requesting the Board to assess and consider the overall
         viability and development of the television and film
         industries and make recommendations to appropriate state
         or county agencies;

     (5) Adding new definitions;

     (6) Clarifying that the Fund shall be used to provide grants
         and fund venture capital investments;

     (7) Clarifying the types of productions that are eligible
         for assistance through the Fund;

     (8) Establishing the board's right to inspect in connection
         with the processing of a grant;

     (9) Changing the effective date from July 1, 1999, to upon
         approval; and 


 
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    (10) Making technical, nonsubstantive changes for clarity and
         consistency.

     In addition, your Committee on Conference strongly
encourages the Board to seek additional support through
opportunities such as the Department of Business, Economic
Development, and Tourism's loan and loan guarantee programs.

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of H.B. No. 37, H.D. 1, S.D. 2, as amended herein, and recommends
that it pass Final Reading in the form attached hereto as H.B.
No. 37, H.D. 1, S.D. 2, C.D. 1.

                                   Respectfully submitted on
                                   behalf of the managers:        

ON THE PART OF THE SENATE          ON THE PART OF THE HOUSE



_______________________________    _______________________________
LORRAINE R. INOUYE, Co-Chair       K. MARK TAKAI, Co-Chair



_______________________________    _______________________________
CAROL FUKUNAGA, Co-Chair           SYLVIA J. LUKE, Co-Chair