THE SENATE                           S.R. NO.              9
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                    SENATE  RESOLUTION

  REQUESTING A STUDY OF THE FEASIBILITY OF ESTABLISHING A HAWAII
    FILM INDUSTRY DEVELOPMENT LOAN GUARANTEE PROGRAM.
 


 1        WHEREAS, in 1998, television series and pilots filmed in
 2   Hawaii generated $99,100,000 in expenditures in the State -- an
 3   increase of forty percent from $70,700,000 spent in 1997; and
 4   
 5        WHEREAS, in 1998, three television series -- two American
 6   and one Japanese -- accounted for $28,200,000 of these
 7   expenditures in Hawaii; and
 8   
 9        WHEREAS, the television series "Baywatch" is filming
10   twenty-two episodes in Hawaii, increasing not only direct film
11   company expenditures, but providing worldwide exposure through
12   initial airings and future reruns of these episodes; and
13   
14        WHEREAS, feature film production crews spent $12,640,000
15   in Hawaii in 1998 -- a drop from the previous year's
16   expenditures of $22,650,000 -- but still a significant
17   contribution to the local economy; and
18   
19        WHEREAS, as a result of these expenditures, Hawaii
20   collected $18,200,000 in state and local tax revenues for 1998;
21   and
22   
23        WHEREAS, the film industry provides many benefits to
24   Hawaii in the form of employment for residents, income for
25   local supply companies -- as well as the additional taxes
26   generated as a result -- and free publicity on the U.S.
27   mainland and in foreign countries that can attract visitors to
28   Hawaii; and
29   
30        WHEREAS, the State has a strong incentive to attract
31   additional film productions and to assist the local film
32   industry in a fiercely competitive global market; and
33   
34        WHEREAS, in 1999, the Texas legislature, recognizing the
35   importance of the film industry in that state, passed
36   legislation establishing a film industry development loan
37   guarantee program to facilitate access to capital for the
38   production of filmed entertainment in Texas; and
39   

 
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                                  S.R. NO.              9
                                                        
                                                        

 
 1        WHEREAS, such a program could be beneficial for the Hawaii
 2   film industry and, in turn, for the State as a whole; now,
 3   therefore,
 4   
 5        BE IT RESOLVED by the Senate of the Twentieth Legislature
 6   of the State of Hawaii, Regular Session of 2000, that the
 7   Legislative Reference Bureau is requested to conduct a study on
 8   the feasibility of establishing a Hawaii film industry
 9   development loan guarantee program; and
10   
11        BE IT FURTHER RESOLVED that this study shall include:
12   
13        (1)  A review of similar programs in other jurisdictions,
14             including the recently established Texas film
15             industry development loan guarantee program;
16   
17        (2)  An assessment of which current or prospective
18             segments of the Hawaii film industry would benefit
19             most from a loan guarantee program;
20   
21        (3)  The projected costs of administering such a program;
22             and
23   
24        (4)  Any additional considerations that may arise as a
25             result of the study;
26   
27   and
28   
29        BE IT FURTHER RESOLVED that the Legislative Reference
30   Bureau shall report to the Legislature twenty days prior to the
31   convening of the Regular Session of 2001, on its findings and
32   recommendations, including any recommended legislation
33   necessary to establish a Hawaii film industry development loan
34   guarantee program; and
35   
36        BE IT FURTHER RESOLVED that certified copies of this
37   Resolution be transmitted to the Director of the Legislature
38   Reference Bureau and the Director of Business, Economic
39   Development, and Tourism.
40 
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43                         OFFERED BY:  ____________________________