STAND. COM. REP. NO. 2746

Honolulu, Hawaii

RE:    S.B. No. 3050

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 3050, S.D. 1, entitled:

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

begs leave to report as follows:

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

     More specifically, the measure:

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

     (2)  Repeals the film industry activities within 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.

     Written comments in support of this measure were submitted by the Department of Business, Economic Development, and Tourism.

     Written comments on this measure were submitted by the Department of Human Resources Development and the Tax Foundation of Hawaii.

     Your Committee finds that an alliance between the tourism industry and the film and television industry has the potential to synergistically benefit both industries.  Your Committee believes that, by assigning responsibility for film, television, digital, and new media development to the Hawaii Tourism Authority, this measure provides a dynamic structure to develop programs and infrastructure to expand film, television, digital, and new media opportunities in the State.

     Your Committee has amended this measure by:

     (1)  Clarifying that the amendments to section 235-17, Hawaii Revised Statutes, made by this measure shall not be repealed when that section is reenacted on July 1, 2016, by section 4(2) of Act 88, Session Laws of Hawaii 2006;

     (2)  Clarifying that the Hawaii Tourism Authority is authorized to enter into an agreement with the Department Budget and Finance to restructure debt service for state obligations related to the Hawaii Convention Center;

     (3)  Providing that a portion of the moneys in the Film, Television, Digital, and New Media Development Special Fund, established by this measure, shall be used for the staffing and operation of the Hawaii Film Office and the operation and maintenance of the Hawaii Film Studio; and

     (4)  Making technical nonsubstantive amendments for the purposes of consistency, clarity, and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3050, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3050, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair