STAND. COM. REP. NO. 2547

Honolulu, Hawaii

RE: S.B. No. 3054

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 3054 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII FILM AND CREATIVE INDUSTRIES DEVELOPMENT SPECIAL FUND,"

begs leave to report as follows:

The purpose and intent of this measure is to expand funding sources and authorized uses of the Hawaii Film and Creative Industries Development Special Fund.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism and two individuals. Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that Act 228, Session Laws of Hawaii 2019 (Act 228), renamed the Hawaii Television and Film Development Special Fund as the Hawaii Film and Creative Industries Development Special Fund to align it with the State's focus on knowledge-based industries development, workforce programs expansion, and support for marketing efforts for creative and film projects in their intellectual property distribution and export activities. In 2021, the Legislature approved a ceiling and ability for the Department of Business, Economic Development, and Tourism to expend up to $750,000 per year to effectuate the purposes of Act 228. This addressed a need within the community to support seed funding for Hawaii's emerging filmmakers and creatives who require access to capital to advance their projects, establish entrepreneurial ventures in creative sectors, and accelerate intellectual property creation and licensing opportunities. This measure will allow the State to further support the State's growing local intellectual property export industry by expanding funding sources and authorized uses of the Hawaii Film and Creative Industries Development Special Fund.

As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3054 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,

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GLENN WAKAI, Chair