Report Title:

Economic Task Force

RESOLUTION

Part I. Formation of an Economic Task Force

WHEREAS, Hawaii's economy has suffered in recent years due in part to the lack of economic diversity; and

WHEREAS, while tourism will always be a priority in economic policy, the seasonal nature of tourism and its vulnerabilities to international economic instability have shown that if Hawaii is to thrive, economic diversity is vital; and

WHEREAS, there are several efforts to develop other sectors of Hawaii's economy including high technology, agriculture, retail, electronic commerce, and communications; and

WHEREAS, focus and cohesiveness of the State's efforts to diversify Hawaii's economy is required; and

WHEREAS, industry, government, and educational leaders must come together to develop clear goals and an implementation plan to diversify Hawaii's economy; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2001, the House of Representatives concurring, that there is created a joint legislative economic task force, under the direction of the Senate Committee on Economic Development and Technology, and the House Committee on Economic Development and Business Concerns, to establish short- and long-term goals to diversify Hawaii's economy, and to establish a specific implementation plan and timeline to accomplish the goals; and

BE IT FURTHER RESOLVED that the respective chairs of the Senate Committee on Economic Development and Technology and the House Committee on Economic Development and Business Concerns choose the members of the task force by July 1, 2001; and

BE IT FURTHER RESOLVED that task force members consist of at least one representative from each of the following groups: retail businesses, restaurants, hotels, public unions, private unions, business educators, high technology businesses, marketing and advertising professionals, tourism, environmental organizations, and small business owners; and

BE IT FURTHER RESOLVED that the task force be open to the participation of representatives from all industries and government agencies to reflect the overall economy, chosen respectively by each industry or agency; and

BE IT FURTHER RESOLVED that the joint economic task force submit a report of its findings and recommendations, including recommended legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2002; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the President of the Senate, Speaker of the House of Representatives, Chair of the Senate Committee on Economic Development and Technology, and Chair of the House Committee on Economic Development and Business Concerns.

WHEREAS, the State strongly supports and encourages the production of motion pictures and television projects in the islands; and

WHEREAS, the year 2000 was the most successful year in Hawaii's history for motion picture and television production with revenues totaling over $100,000,000; and

WHEREAS, Hawaii now competes on a worldwide basis for a share of the motion picture and television production business; and

WHEREAS, one of the most effective ways to compete for film and television projects is to offer financial or tax incentives; and

WHEREAS, in 1997, the Legislature passed a law providing tax credits for the motion picture industry; and

WHEREAS, the Department of Taxation (DOTAX) proceeded to establish rules and criteria which applied to motion picture tax credits; and

WHEREAS, the film industry has expressed concerns that the existing criteria may not be applicable to many productions and therefore is ineffective in serving as an incentive to create more production activity; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2001, the House of Representatives concurring, that the Legislature requests DOTAX and the Department of Business, Economic Development, and Tourism (DBEDT), with the assistance and recommendations of the Hawaii Television and Film Development Board, to consider changes to the criteria for motion picture and television tax incentives; and

BE IT FURTHER RESOLVED that DOTAX and DBEDT are requested to consider the applicability of the tax incentive criteria and the effectiveness of the tax incentive in creating more production activity; and

BE IT FURTHER RESOLVED that DOTAX and DBEDT are requested to submit their findings and recommendations to the Legislature no later than twenty days prior the convening of the Regular Session of 2002; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor, Director of Taxation, Director of Business, Economic Development, and Tourism, and Chairperson of the Hawaii Television and Film Development Board.