STAND. COM. REP. NO.  1154-12

Honolulu, Hawaii

                , 2012

RE:   S.B. No. 3050

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committees on Economic Revitalization & Business and Tourism, to which was referred S.B. No. 3050, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO FILM, TELEVISION, DIGITAL, AND NEW MEDIA DEVELOPMENT,"

beg leave to report as follows:

The purpose of this measure is to further the development of the State's film, television, digital, and new media development industries by partnering these industries with the State's tourism industry.  Specifically, this measure:

     (1)  Assigns to the Hawaii Tourism Authority the responsibilities for film, television, digital, and new media development;

     (2)  Repeals the film industry activities of the Department of Business, Economic Development, and Tourism; and

     (3)  Requires the Hawaii Tourism Authority to restructure the debt service for state obligations related to the Hawaii Convention Center and fund the implementation of the film, television, digital, and new media development activities for fiscal year 2012-2013 and fiscal year 2013-2014 from the savings from any debt restructuring.

The Department of Business, Economic Development, and Tourism supported the intent of this measure.  The Hawaii Film and Entertainment Board, Screen Actors Guild, International Alliance of Theatrical Stage Employees Mixed Local 665, American Federation of Musicians Local 677, and Hawaii Teamsters Local 996 opposed this measure.  The Department of Budget and Finance, Department of Human Resources Development, and Tax Foundation of Hawaii offered comments.

     Your Committees have amended this measure by replacing its contents with the substance of H.B. No. 2338, H.D. 2, which authorizes the Department of Land and Natural Resources to lease public land for purposes of developing creative media production and post-production facilities by negotiation and without recourse to public auction.  Your Committees have further amended this measure by changing its effective date to July 1, 2112, to facilitate further discussion.

     As affirmed by the records of votes of the members of your Committees on Economic Revitalization & Business and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3050, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3050, 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 Economic Revitalization & Business and Tourism,

____________________________ TOM BROWER, Chair

____________________________ ANGUS L.K. McKELVEY, Chair