HB1499.DOC

SECTION 1. The legislature finds that the creative industries division of the department of business, economic development, and tourism is a vital part of driving the State’s creative economy. Its sectors include the arts, culture, music, film, television, digital and new media, and combined, creative industries contributed over $4,000,000,000 to the State’s gross domestic product in 2008 and 2009. The film industry sector generated almost $60,000,000 in tax revenue since the creation of the motion picture, digital media, and film production income tax credit.

The legislature also finds that the creative industries, particularly film and television productions, go to great lengths to hire locally and invest in training and workforce development of island-based personnel. The three television series and one independent feature film that recently filmed in Hawaii in 2004 (North Shore, Hawaii, LOST, and Tides of War) had crews consisting of eighty‑five to ninety per cent Hawaii residents. More recent blockbuster productions, such as Tropic Thunder, Pirates of the Caribbean 4, and Hawaii 5-0, also have made use of a significant number of local talent and crew.

The legislature further finds that it is desirable to support the film, television, and digital media industries because these industries:

(1) Infuse significant amounts of new money into the economy, which is dispersed across many communities and businesses and that benefits a wide array of residents;

(2) Create skilled, high-paying jobs;

(3) Have a natural dynamic synergy with Hawaii's top industry, tourism, and is used as a destination marketing tool for the visitor industry; and

(4) Are a clean, nonpolluting industry that values the natural beauty of Hawaii and its diverse multicultural population and wide array of architecture.

Despite the proven benefits of Hawaii's creative industries, and in the face of the Hawaii film industry’s most successful year, it is ironic that the creative industries division, of which the film industry branch is a part, was forced to struggle under severe resource cuts in staffing and funding. The division was reduced by more than fifty per cent last year and despite this travesty, the staff conducted themselves in the most professional manner under extreme and trying conditions for the good of the people of Hawaii. Their diligence helped the film industry achieve a record $400,000,000 in direct spending and over $600,000,000 in economic impact. Over forty-five thousand people in the creative industries rely upon this office to execute, facilitate, and help drive Hawaii’s creative economy. It is therefore imperative to restore the funding to the creative industries division and properly staff it.

The purpose of this Act is to appropriate moneys to support the growth of the film, television, digital, and creative industries in Hawaii.

SECTION 2. The director of finance is authorized to issue general obligation bonds in the sum of $4,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the design and construction of a second film stage on Oahu.

The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $245,000 or so much thereof as may be necessary for fiscal year 2011-2012 to the creative industries division of the department of business, economic development, and tourism to establish five full-time equivalent positions, as follows:

(1) One branch manager;

(2) One economic development specialist V, for local creative, film, and digimedia industry development;

(3) One secretary III, for the creative industries division;

(4) One secretary II, for the film industry branch; and

(5) One economic development specialist VI, for creative media fund management.

The sum appropriated shall be expended by the creative industries division of the department of business, economic development, and tourism for the purposes of this Act.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $600,000 or so much thereof as may be necessary for fiscal year 2011-2012 to the creative industries division of the department of business, economic development, and tourism to support continued operations and growth of the creative industries division, to be expended as follows:

Studio repairs and maintenance $ 150,000

Programs division, arts, culture, film,

and digimedia $ 300,000

Digimedia production center and incubator,

Phase II $ 150,000

The sum appropriated shall be expended by the creative industries division of the department of business, economic development, and tourism for the purposes of this Act.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $850,000 or so much thereof as may be necessary for fiscal year 2011-2012 for deposit into the Hawaii television and film development special fund established under section 201-113, Hawaii Revised Statutes.

SECTION 6. There is appropriated out the Hawaii television and film development special fun the sum of $850,000 or so much thereof as may be necessary for fiscal years 2011-2012 to be expended for the purposes of section 201-113, Hawaii Revised Statutes.

The sum appropriated shall be expended by the Hawaii television and film development board for the purposes of this Act.

SECTION 7. This Act shall take effect on July 1, 2011.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1499
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII