STAND. COM. REP. NO.  1059-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2776

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Economic Development & Business, to which was referred S.B. No. 2776, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

The purpose of this measure is to foster a film production industry in Hawaii by:

     (1)  Establishing a creative film and media park to be administered by the Board of Directors of the High Technology Development Corporation;

     (2)  Designating specific properties in West Oahu to be included in the park; and

     (3)  Including the development of the park as part of the duties of the High Technology Development Corporation.

The Department of Business, Economic Development, and Tourism, University of Hawaii at West Oahu and two concerned individuals testified in support of the intent of this bill.  The Department of Land and Natural Resources testified in opposition to this measure.  The Hawaii Housing Finance and Development Corporation, High Technology Development Corporation, and SHM Partners/Film Studio Group provided comments.

     Hawaii is blessed with a vibrant and growing entertainment economy.  While the motion picture, television, and digital media industry has had a positive impact on the economy of Hawaii through job creation, increased tax revenues, and providing Hawaii's visitor industry with priceless marketing exposure on a global scale throughout the year, the lack of sufficient infrastructure in the State has hindered the growth of this industry.  The creation of a film and media park would attract both national and international investments in film and media production, further strengthening and diversifying Hawaii's economy.

     Your Committee notes that, as the land being contemplated for use as a film and media park is situated on the campus of the University of Hawaii at West Oahu and the park is anticipated to be connected to the University of Hawaii at West Oahu through academic programming, internship opportunities, and other collaborative efforts, involvement by the Board of Regents of the University of Hawaii in the development of the park is crucial.

Accordingly, your Committee has amended this measure by stipulating that the Board of Directors of the High Technology Development Corporation work in conjunction with the Board of Regents of the University of Hawaii in developing the film and media park and any planning and design of the park.

     Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

     Finally, your Committee finds that there continues to be concern about the specific parcels of land cited in this measure through tax map key number designations.  As such, your Committee requests that the proponents of this measure provide the Committee on Finance with specific names or descriptions and geographic locations of the parcels in question in addition to the tax map key number designations.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2776, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2776, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business,

____________________________

CLIFT TSUJI, Chair