STAND. COM. REP. NO. 2480

Honolulu, Hawaii

RE:    S.B. No. 2827

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Economic Development, Environment, and Technology, to which was referred S.B. No. 2827 entitled:

"A BILL FOR AN ACT RELATING TO FUNDING FOR CREATIVE MEDIA AND FILM DEVELOPMENT,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Rename the Hawaii television and film development special fund as the creative media and film infrastructure special fund;

     (2)  Broaden the sources of revenue for the creative media and film infrastructure special fund;

     (3)  Repeal the Hawaii Television and Film Development Board, which has been inactive for nearly ten years, along with the grant and venture capital programs to be implemented by the Board; and

     (4)  Amend the purposes for which the creative media and film infrastructure special fund may be used in order to enable the Department of Business, Economic Development, and Tourism to fulfill its statutory duties regarding the film program.

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; County of Kaua‘i Office of Economic Development; and Maui County Film Office.

     Your Committee finds that Hawaii's film industry brings in an estimated $250,000,000 in production revenues per year, providing the State with an estimated economic impact of over $400,000,000 annually.  The Hawaii Film Office in the Creative Industries Division of the Department of Business, Economic Development, and Tourism is involved in all aspects of this industry, including fulfilling its statutory duties for film permitting, tax incentive management, and studio operations and management.  Your Committee further finds that increased demands on the Hawaii Film Office have stretched already limited staff and resources to capacity, and additional funding and resources are necessary to continue the State's involvement in this high-revenue industry.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Economic Development, Environment, and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2827, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2827, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development, Environment, and Technology,

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GLENN WAKAI, Chair