STAND. COM. REP. NO. 1990

Honolulu, Hawaii

, 2019

RE: S.B. No. 33

S.D. 3

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 33, S.D. 3, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to support the film industry in Hawaii by:

(1) Increasing the rolling annual Motion Picture, Digital Media, and Film Production Income Tax Credit (Tax Credit) cap to $55,000,000; and

(2) Extending the effective period of the Tax Credit through December 31, 2032;

provided that the University of Hawaii, West Oahu campus (UH), and the Hawaii Technology Development Corporation (HTDC) enter into a memorandum of understanding with specified requirements, for the lease and potential title transfer of specified lands from UH to HTDC.

The Maui County Film Office, Ho‘omanapono Political Action Committee, and numerous concerned individuals supported this measure. The Department of the Attorney General; Department of Business, Economic Development & Tourism; Department of Taxation; University of Hawai‘i System; HTDC; Honolulu Film Office; Kaua‘i Film Commission; Iron Workers Stabilization Fund; Motion Picture Association of America, Inc.; CBS Corporation; Warner Bros.; NBC/Universal; Magic Island Productions; Hawaii Teamsters and Allied Workers, Local 996; Hawaii Media Inc.; GVS Accelerator; International Alliance of Theatrical Stage Employees Local 665; Pride at Work Hawaii; Island Film Group; Screen Actors Guild-American Federation of Television and Radio Artists, Hawaii Local; and numerous concerned individuals submitted comments on this measure.

Your Committee has amended this measure by:

(1) Changing the amount of the annual Tax Credit cap to an unspecified amount; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 33, S.D. 3, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 33, S.D. 3, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair