SB1641 SD1

SECTION 1. Chapter 201, Hawaii Revised Statutes, is amended by adding six new sections to part IX to be appropriately designated and to read as follows:

"§201-A Hawaii state film office; established; purpose. (a) There is established a Hawaii state film office within the department for administrative purposes only.

(b) The purpose of the Hawaii state film office shall be to promote and develop the film, television, and media industries in the State, with a focus on creating jobs, fostering economic development, supporting local cultural productions, and enhancing the State's global competitiveness in creative media.

§201-B Hawaii state film office; powers; duties. (a) The Hawaii state film office shall:

(1) Develop and promote infrastructure to support film and media production;

(2) Invest in and manage film studios and production facilities;

(3) Collaborate with educational institutions to develop workforce training programs;

(4) Partner with local and international media companies to increase production opportunities; and

(5) Serve as an assistant producer and invest in local productions to generate revenues for the State.

(b) The Hawaii state film office may:

(1) Enter into partnerships to develop film production facilities;

(2) Invest in film and media projects and receive returns from the investments; and

(3) Serve as a co-producer or assistant producer in projects that promote local culture and industry growth.

(c) The Hawaii state film office may adopt rules pursuant to chapter 91 to effectuate the purposes of this part; provided that the Hawaii state film office shall not adopt rules in relation to section 201-115.

§201-C Development and support of cultural productions. The Hawaii state film office shall prioritize the development and support of facilities that expand local and cultural productions. The office may partner with cultural organizations and provide grants to promote indigenous storytelling.

§201-D Hawaii state film office; annual report. The Hawaii state film office shall submit a report of its finding and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session, detailing:

(1) Progress on strategic objectives;

(2) Workforce initiatives, including the development and implementation of the five-year strategic plan required pursuant to section 201-E(b)(1);

(3) Tax incentive impacts; and

(4) Revenue generated by film and media production.

§201-E Hawaii state film commission; established; responsibilities; composition. (a) There is established within the Hawaii state film office a Hawaii state film commission.

(b) The commission shall:

(1) Develop a five-year strategic plan integrating workforce development business attractions and infrastructure expansion;

(2) Provide policy recommendations on improving tax incentives and diversifying the State's film and media production industry;

(3) Establish partnerships with local and global film media industries;

(4) Serve as the coordinating agency among state, county, and private entities to streamline the permitting and production processes; and

(5) Foster indigenous storytelling initiatives in collaboration with the State's creative communities.

(c) The commission shall consist of twelve members, ten of whom shall be appointed and removed by the governor pursuant to section 26-34, except as otherwise provided in this section, and two of whom shall be ex officio, voting members as follows:

(1) The director of business, economic development, and tourism or the director's designee, who shall:

(A) Serve as chairperson of the commission; and

(B) Serve as an ex-officio, voting member;

(2) The chairperson of the board of land and natural resources or the chairperson's designee, who shall serve as an ex-officio, voting member;

(3) One member from each of the counties' film offices;

(4) One member who shall have expertise in indigenous and cultural storytelling;

(5) One member who shall have extensive global media production experience;

(6) One member who shall have expertise in studio development and infrastructure;

(7) One member who shall be a Hawaii-based producer with significant production credits; and

(8) Two members representing the labor workforce in the film and media industries.

(d) The chairperson shall select a vice-chairperson from among the members. The chairperson may select other leadership positions from among the members as the chairperson deems necessary, including but not limited to treasurer and secretary.

§201-F Hawaii state film commission; executive director; duties. (a) The commission shall appoint an executive director to oversee daily operations and report to the commission.

(b) The executive director may hire other administrative personnel necessary to assist in the performance of the commission's duties.

(1) Develop and implement the strategic plan pursuant to section 201-E(b)(1); and

(2) Prepare an annual budget and allocate resources to achieve strategic objectives, including coordinating marketing and promotional activities to position the State as a premier filming destination."

SECTION 2. Section 201-111, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Commission" means the Hawaii state film commission."

SECTION 3. Section 201-113, Hawaii Revised Statutes, is amended to read as follows:

"§201-113 Hawaii film and creative industries development special fund. (a) There is established in the state treasury the Hawaii film and creative industries development special fund into which shall be deposited:

(1) Appropriations by the legislature;

(2) Donations and contributions made by private individuals or organizations for deposit into the fund;

(3) Grants provided by governmental agencies or any other source;

(4) Effective January 2, 2023, all revenues, fees, and charges from the processing of the motion picture, digital media, and film production income tax credit pursuant to section 235-17; [~~and~~]

(5) Effective July 1, 2022, all existing and future revenues, fees, and income received by the department from its management of public facilities that support media and entertainment workforce and business development, with the exception of the Hawaii film studio[.];

(6) Investment revenues and returns from partnerships made by the Hawaii state film office; and

(7) Fees and charges collected by the Hawaii state film office.

(b) The fund shall be used by the department to provide for:

(1) A program to provide seed capital for film, media, electronic sports, and creative industries intellectual property development projects for export, as determined by the department;

(2) Programs that expand the skills of the Stateʹs resident workforce in the film, media, and creative industries;

(3) Marketing programs that attract business opportunities in the film, media, and creative industries in the State; [~~and~~]

(4) Repair, maintenance, and related costs of the department's management of public facilities that support media and entertainment workforce and business development[.]; and

(5) The support and development of facilities, film tax incentives, and other initiatives to grow the State's creative industries."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment and operation of the Hawaii state film office, including the establishment of:

(1) One full-time equivalent (1.0 FTE) executive director of the Hawaii state film commission position, who shall be exempt from chapter 76, Hawaii Revised Statutes; and

(2) Two full-time equivalent (2.0 FTE) administrative positions to support the Hawaii state film commission, who shall be exempt from chapter 76, Hawaii Revised Statutes.

The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 5. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2025.

THE SENATE	S.B. NO.	1641
THIRTY-THIRD LEGISLATURE, 2025		S.D. 1
STATE OF HAWAII