STAND

STAND. COM. REP. NO. 1126

Honolulu, Hawaii

, 2005

RE: S.B. No. 1304

S.D. 2

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Tourism & Culture and Economic Development & Business Concerns, to which was referred S.B. No. 1304, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TELEVISION AND FILM INDUSTRY DEVELOPMENT,"

beg leave to report as follows:

The purpose of this bill is to improve the administration and operation of the Hawaii Television and Film Development Board (Board) and the Hawaii Television and Film Development Special Fund (Special Fund) by, among other things:

(1) Increasing the number of Board members:

(A) To eleven;

(B) Appointed by the Governor to six; provided that:

(i) Two shall be appointed from a list of nominees submitted by the President of the Senate;

(ii) Two shall be appointed from a list of nominees submitted by the Speaker of the House of Representatives (Speaker); and

(iii) One shall be a current member of the University of Hawaii's faculty or administration;

and

(2) Establishing a seven-member quorum;

(3) Specifying that the Special Fund may receive grants from sources related to television and film development and production;

(4) Allowing the Board to establish subcommittees to administer specific programs and activities;

(5) Requiring the Board to convene only if there is a balance in the Special Fund or if any grant, loan, or investment program of the Board remains outstanding;

(6) Requiring the Board, by majority vote, to establish a subcommittee composed of Board members from government and the private sector to review grant applications and recommend grant recipients to the Board;

(7) Requiring the Board, by majority vote, to establish a subcommittee composed of Board members from government and the private sector to administer any venture capital, investment, or loan program and to make recommendations;

(8) Allowing up to 10 percent of the amounts in the Special Fund to be used to support operations of the Board, and the administration of the Special Fund and any grant, venture capital, or loan program established by the Board; and

(9) Appropriating general funds to be deposited into the Special Fund.

The Department of Business, Economic Development, and Tourism, Maui Film Office, and the Big Island Film Office supported this bill.

Your Committees note that suggestions were made during the public hearing to revise the nomination process for Board members by allowing the Governor, for each appointment, to choose from a list of three nominees submitted by the Speaker or the President of the Senate. An additional suggestion involved staggering the terms of the Board members. Your Committees support future efforts to consider these amendments as this bill moves along the legislative process.

Your Committees have amended this measure by:

(1) Changing the number of Board members:

(A) To twelve;

(B) Appointed by the Governor to seven;

(D) Nominated by the Speaker for gubernatorial appointment to three; and

(E) Required to possess a current working knowledge of the film, television, or entertainment industry to seven;

and

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

As affirmed by the records of votes of the members of your Committees on Tourism & Culture and Economic Development & Business Concerns that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1304, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1304, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Tourism & Culture and Economic Development & Business Concerns,

____________________________

ROBERT N. HERKES, Chair

____________________________

JERRY L. CHANG, Chair