STAND. COM. REP. NO. 884

Honolulu, Hawaii

RE:    S.B. No. 1155

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 1155, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE CREATIVE MEDIA INDUSTRY,"

begs leave to report as follows:

     The purpose and intent of this measure is to more efficiently allocate the resources of Hawaii's creative media industry.

     More specifically, this measure:

     (1)  Transfers the state responsibilities for television and film development from the Department of Business, Economic Development, and Tourism to the Hawaii Tourism Authority, and makes conforming amendments;

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

     (3)  Establishes and appropriates funds from the film, television, digital, and new media development special fund to the Hawaii Tourism Authority for implementation of the film, television, digital, and new media development activities.

     Your Committee received written comments in support of this measure from the Department of Business, Economic Development, and Tourism.  Your Committee received written comments in opposition to this measure from SAG-AFTRA Hawaii Local, I.A.T.S.E. Local 665, and the American Federation of Musicians' Local 677.  Your Committee received written comments on this measure from the Department of Taxation.

     Your Committee finds that it would be more appropriate to assign to the Hawaii Tourism Authority the responsibilities for film development and marketing, rather than film, television, digital, and new media development.  Your Committee further finds that the Department of Business, Economic Development, and Tourism should retain its Creative Industries Division.

     Your Committee notes that concerns have been raised regarding the operation of a film office in a tourism-focused entity like the Hawaii Tourism Authority.  Your Committee understands that, while film and tourism do complement each other in some ways, they are very distinct and separate engines that influence our local economy, particularly when it comes to marketing messages.  Your Committee also notes that an option to address these concerns would be to revitalize the Hawaii Television and Film Development Board, as the Board could act as a bridge between the two industries.

     Your Committee has amended this measure by:

     (1)  Assigning to the Hawaii Tourism Authority the responsibilities for film development and marketing, rather than film, television, digital, and new media development;

     (2)  Clarifying the purpose section to specify that this measure is intended to transfer the Film Industry Branch of the Creative Industries Division of the Department of Business, Economic Development, and Tourism to the Hawaii Tourism Authority;

     (3)  Amending:

(A)  The name of the special fund established by this measure to the "film development and marketing special fund"; and

(B)  The purpose of the appropriation to the implementation of film development and marketing activities;

     (4)  Changing the effective date to July 1, 2053, to facilitate further discussion on the measure; and

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

     Your Committee on Economic Development and Technology has given its prior concurrence to these amendments.

     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. 1155, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1155, S.D. 2.

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

________________________________

JILL N. TOKUDA, Chair