STAND. COM. REP. NO. 479

Honolulu, Hawaii

RE: S.B. No. 1641

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Economic Development and Tourism, to which was referred S.B. No. 1641 entitled:

"A BILL FOR AN ACT RELATING TO THE STATE OF HAWAII FILM COMMISSION,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the State of Hawaii Film Commission within the Creative Industries Division of the Department of Business, Economic Development, and Tourism to support the State's film and media industries;

(2) Require reports to the Legislature; and

(3) Appropriate funds.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Chamber of Commerce Hawaii; SAG-AFTRA; IATSE Local 665; Maui Chamber of Commerce; and eight individuals.

Your Committee finds that the State's film industry needs centralized leadership to attract business, streamline processes, and expand its workforce. This measure will grow the State's creative sector and strengthen and cultivate careers in the State's film industry by setting forth a working collaboration between state and county agencies to address a broader vision for workforce development, infrastructure and facilities, and business attraction, including local creative content development.

Your Committee has amended this measure by:

(1) Establishing the Hawaii State Film Office within the Department of Business, Economic Development, and Tourism with the purpose of promoting and developing certain media industries in the State;

(2) Requiring the Hawaii State Film Office to:

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

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

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

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

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

(3) Allowing the Hawaii State Film Office to:

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

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

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

(D) Adopt administrative rules;

(4) Requiring the Hawaii State Film Office to prioritize the development and support of facilities that expand local and cultural productions;

(5) Allowing the Hawaii State Film Office to partner with cultural organizations and provide grants to promote indigenous storytelling;

(6) Requiring the Hawaii State Film Office, rather than the State of Hawaii Film Commission, to submit an annual report to the Legislature;

(7) Renaming the State of Hawaii Film Commission the Hawaii State Film Commission (Commission) and establishing the Commission within the Hawaii State Film Office;

(8) Making the Director of Business, Economic Development, and Tourism the Chairperson of the Commission;

(9) Requiring the Chairperson of the Commission to select a Vice-Chairperson from among the Commission's members, rather than allowing the Commission to elect its Chair;

(10) Allowing the Chairperson of the Commission to select other leadership positions from among the Commission's members, rather than requiring the Commission to elect other leadership positions;

(11) Requiring the Executive Director of the Commission, rather than the Commission as a whole, to prepare an annual budget, allocate resources, and coordinate marketing and promotional activities to position the State as a premier filming destination;

(12) Allowing investment revenues and returns from partnerships made by the Hawaii State Film Office and fees and charges collected by the Hawaii State Film Office to be deposited into the Hawaii Film and Creative Industries Development Special Fund;

(13) Allowing the Department of Business, Economic Development, and Tourism to use the Hawaii Film and Creative Industries Development Special Fund to provide for the support and development of other facilities, film tax incentives, and other initiatives to grow the State's creative industries;

(14) Changing the appropriation to an unspecified amount; and

(15) 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 and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1641, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1641, 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 and Tourism,

________________________________

LYNN DECOITE, Chair