STAND. COM. REP. NO. 76

Honolulu, Hawaii

RE: S.B. No. 1237

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 1237 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII FILM INDUSTRY,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Hawaii Film Commission;

(2) Extend the sunset date of the motion picture, digital media, and film production income tax credit to January 1, 2038;

(3) Transfer the rights, powers, functions, and duties of the Hawaii State Film Office to the Hawaii Film Commission; and

(4) Appropriate funds for one full-time equivalent (1.0 FTE) Executive Director position within the Hawaii Film Commission.

Your Committee received testimony in support of this measure from the University of Hawai‘i System, Screen Actors Guild – American Federation of Television and Radio Artists, IATSE Local 665, Stonewall Caucus of the Democratic Party of Hawai‘i, Hawai‘i State AFL-CIO, Pride at Work - Hawai‘i, Hawai‘i Nurses' Association – OPEIU Local 50, and twenty-one individuals. Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism; Department of Taxation; Tax Foundation of Hawaii; and Association of Film Commissioners International.

Your Committee finds that the Hawaii film industry is an important component of a diversified economy. Your Committee further finds that motion picture, digital media, and film production have been effective in stimulating the economy and creating quality jobs in the State. Your Committee believes that strategic focus and organization are paramount in developing and maintaining Hawaii as a premier filming location and the development of a local film workforce to provide both above the line and below the line expertise in pre-production, production, and post-production. This measure will strengthen and improve organization in the Hawaii film industry by establishing the Hawaii Film Commission; transferring the rights, powers, functions, and duties of the Hawaii State Film Office to the Hawaii Film Commission; and extending the sunset date of the motion picture, digital media, and film production income tax credit to January 1, 2038.

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. 1237 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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LYNN DECOITE, Chair