STAND. COM. REP. NO. 2037

Honolulu, Hawaii

RE: H.B. No. 312

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 312, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CREATIVE MEDIA,"

begs leave to report as follows:

The purpose and intent of this measure is to require the University of Hawaii, West Oahu, to establish a program to award to qualifying students a bachelor of arts degree in creative media.

Your Committee received written comments in support of this measure from Kauai Community College, MELE Program, Waianae High School, Oahu County Democrats Legislative Priorities Committee, and numerous individuals.

Your Committee received written comments in opposition to this measure from the University of Hawaii System.

Your Committee finds that a program for a bachelor of arts degree in creative media at the University of Hawaii, West Oahu Campus, will offer training in an innovative field of study that is in demand by students while also meeting the vocational and educational requirements of growing industries in the State.

Your Committee further finds that the creative media program at the University of Hawaii, West Oahu Campus, will realize its full potential when coupled with greater employment opportunities for those graduates. Accordingly, your Committee believes that the Hawaii Technology Development Corporation should acquire the thirty-acre parcel adjacent to the intersection of Farrington Highway and Kapolei Golf Course Road for development into a film studio, which will serve as an economic driver for the State and provide numerous high-paying creative media jobs for recent graduates.

Your Committee notes that the Hawaii Community Development Authority and other administratively attached agencies of the Department of Business, Economic Development, and Tourism may viably acquire title to the parcel of the proposed film studio.

Your Committee has amended this measure by:

(1) Adding a section finding that establishment of a bachelor of arts degree in creative media at the University of Hawaii, West Oahu campus, is a matter of statewide concern;

(2) Inserting into the measure the contents of Senate Bill 33, Senate Draft 3, which:

(A) Requires the University of Hawaii, West Oahu Campus, to execute a contract to transfer title of a thirty-acre parcel, which is currently intended to be developed into a state film production studio, to the Hawaii Technology Development Corporation;

(B) Specifies the boundaries of the thirty-acre parcel;

(C) Repeals the annual $35,000,000 rolling cap for the motion picture, digital media, and film production income tax credit, effective upon the transfer of title of the thirty-acre parcel to the Hawaii Technology Development Corporation; and

(D) Extends the sunset date of the motion picture, digital media, and film production income tax credit from January 1, 2026, to January 1, 2033, effective upon the transfer of title of the thirty-acre parcel to the Hawaii Technology Development Corporation; and

(3) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 312, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 312, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair