SB211.DOC

SECTION 1. The legislature finds that the film industry in Hawaii contributes millions of dollars and hundreds of jobs each year. In 2011, the total film industry expenditure in Hawaii was more than $184,000,000. Several popular movies and television shows have been filmed in Hawaii over the years, including "Jurassic Park", "Fifty First Dates", "Tropic Thunder", "The Descendants", "Magnum P.I.", "Lost", and "Hawaii Five-O".

The legislature further finds that the sports industry is another important industry in the State. Hawaii hosts no less than ten major national and international sporting events each year, including the NFL Pro Bowl, Honolulu Marathon, Van's Triple Crown of Surfing, Sheraton Hawaii Bowl, Molokai Hoe, X‑Terra World Championship, Ford Ironman World Championship, EA Sports Maui Invitational, the PGA Sony Open and Hyundai Tournament of Champions, and the LPGA Lotte Championship. Sporting events in Hawaii have a combined economic impact of over $200,000,000 each year. This economic value is multiplied by the intangible value of broadcast coverage of many of these events in other markets that display Hawaii as an attractive vacation destination.

The legislature further finds that the film industry, spectator sports, and participant sports are complementary industries to tourism. In the film industry, there are immediate economic benefits from a film production, including hotel costs, catering, and hiring of local crews. There are also long-term economic impacts, such as movie goers' heightened interest in a film location. A significant number of Hawaii's annual visitors also travel here to watch or participate in a sporting event. In addition to event admission fees, these visitors contribute to the State's economy through their purchases of lodging, meals, airfare, car rentals, entertainment, shopping, and other expenditures.

The legislature believes that there is significant room for growth in Hawaii's film and sports industries, which will increase visitor arrivals and expenditures. An office of film and sports development is needed to grow Hawaii's film industry and promote and market sports in Hawaii.

The purpose of this Act is to create the office of film and sports development within the department of business, economic development, and tourism.

SECTION 2. Chapter 201, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201- Office of film and sports development; establishment; powers and duties. (a) There is established the office of film and sports development in the department of business, economic development, and tourism, which shall be headed by the director of the office of film and sports development.

(b) The director shall have knowledge and experience in film and sports marketing, promotion, and development. The director shall be nominated and appointed by the governor without regard to chapter 76.

(d) The director and employees of the office shall be included in any benefit program generally applicable to the officers and employees of the State.

(e) The office of film and sports development shall be responsible for:

(1) Acting as the central office within the department of business, economic development, and tourism for coordination of film permit activities in the State;

(2) Promoting, marketing, and developing the sports industry in Hawaii, including professional, amateur, and youth sporting events;

(3) Developing, coordinating, and implementing long-range state policies and directions for sporting events and related activities;

(4) Promotion of Hawaii, through a coordinated statewide, national, and international effort, as a place to hold and attend sporting events; and

(5) Any and all other activities necessary to carry out the intent of this section.

(f) The office of film and sports development shall be operational no later than January 1, 2014."

SECTION 3. Section 201-14, Hawaii Revised Statutes, is amended to read as follows:

"§201-14 Consolidated film permit processing. (a) The [~~department~~] office of film and sports development shall consult with state and county agencies in order to identify sites that can be used for making visually recorded productions under terms and conditions as may be determined by the state or county agency having jurisdiction over the sites.

(b) The [~~department~~] office of film and sports development may accept an application from any person who proposes to make a motion picture, television show, television commercial, or other visually recorded production at one or more sites on state or county lands, whether or not set aside under section 171-11.

(c) The applicant shall identify the sites to be covered by the permit and provide other information as may be required by the [~~department.~~] office of film and sports development.

(d) The [~~department~~] office of film and sports development may approve and issue a permit to film at any of the sites identified by the appropriate state or county agency under subsection (a). If any site requested for use by the applicant is not identified under subsection (a), the [~~department~~] office of film and sports development shall consult with the appropriate state or county agency having jurisdiction over the site to obtain a permit. If the matter of a permit cannot be resolved in this manner, the [~~department~~] office of film and sports development shall refer the application to the appropriate state or county agency to obtain a permit.

(e) The [~~department~~] office of film and sports development is authorized to make changes to, and extensions of, any approved permits so long as the changes and extensions do not conflict with the policies, terms, and conditions set forth by the agency having jurisdiction over the site in question.

(f) The [~~department~~] office of film and sports development may establish memoranda of agreement or adopt rules to implement the intent and purposes of this section.

(g) Nothing in this section shall be construed as waiving the authority of any county or the department of transportation of the State to require a person to obtain a permit from the department or county where the production takes place on or from a public highway.

(h) A vessel engaged in temporary use for film production purposes in accordance with a film permit issued by the [~~department~~] office of film and sports development shall not be considered to be a "commercial vessel" within the meaning of section 200-9, 200-10, or 200-39; provided that:

(1) The period of temporary use does not exceed fourteen hours per day, five days per week, excluding weekends, and for a period not to exceed thirty calendar days; and

(2) The [~~department~~] office of film and sports development may make allowances to include weekends for film production purposes due to inclement weather conditions during the weekday period."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2013-2014 and the same sum or so much thereof as may be necessary for fiscal year 2014-2015 to establish the office of film and sports development, including the hiring of necessary staff.

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

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2013.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	211
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII