STAND. COM. REP. NO. 473

Honolulu, Hawaii

RE:    S.B. No. 1191

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Economic Development, Tourism, and Technology and Higher Education, to which was referred S.B. No. 1191 entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Extend the motion picture, digital media, and film production income tax credit for an additional ten years to provide economic incentive predictability for the film industry; and

     (2)  Increase accountability for educational and workforce development contributions associated with the credit.

     Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; County of Kauai, Office of Economic Development; University of Hawaii System; Motion Picture Association of America; SAG-AFTRA Hawaii Local; I.A.T.S.E. Local 665; A.F.M. Local 677; Teamsters Local 996; Hawaii State AFL-CIO; and five individuals.  Your Committees received comments on this measure from the Department of Taxation, Office of the Auditor, and Tax Foundation of Hawaii.

     Your Committees find that the motion picture, digital media, and film production income tax credit provides consistency and certainty for production planning, industry growth, and development of new infrastructure.  Your Committees find that the measure would provide potential funding to support students at the University of Hawaii in creative media programs and projects.  Your Committees further find that this measure will have a positive impact in ensuring support for the film production industry while helping to develop a strong workforce for the growing industry in the State.

     Your Committees have amended this measure by:

     (1)  Changing the effective date to January 1, 2020; and

     (2)  Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Economic Development, Tourism, and Technology and Higher Education that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1191, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1191, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Economic Development, Tourism, and Technology and Higher Education,

________________________________ KAIALI'I KAHELE, Chair

________________________________ GLENN WAKAI, Chair