HOUSE OF REPRESENTATIVES	H.B. NO.	2338
TWENTY-SIXTH LEGISLATURE, 2012		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO THE CREATIVE MEDIA INDUSTRY.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that the State must diversify its economy in order to further economic sustainability.  While tourism is the pillar of Hawaii's economy and agriculture is a resurging industry, the creative media industry has been a boon to Hawaii's economy.  For example, the industry generated $180,000,000 in revenue from January to October 2011 and $400,000,000 in revenue in 2010 as a result of film production in the State.  The film industry has also generated numerous jobs for Hawaii residents.

     Fostering the growth of the creative media industry will further help to sustain and strengthen Hawaii's economy.  One economically feasible way to support the creative media industry is to lease public land to develop film studio and production facilities.  The legislature finds that this serves a public purpose by promoting the economic development of the State through job creation and revenue generation.

     The purpose of this Act is to authorize the department of land and natural resources to lease public land for purposes of developing creative media facilities.

     SECTION 2.  Chapter 171, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§171-     Creative media industry leases.  (a)  The department may lease public lands by direct negotiation and without recourse to public auction for purposes of developing creative media facilities.

     (b)  In addition to the restrictions provided under section 171-36(a), the following restrictions shall apply to all leases under this section:

     (1)  A facility constructed on one parcel of land shall be a minimum of one hundred thousand square feet;

     (2)  The initial lease term shall not be longer than fifty years;

     (3)  An initial lease term may be renewed or extended at the discretion of the department; and

     (4)  The department shall determine the lease rent, which may include a percentage of revenues generated; provided that the lease rent shall be less than the appraisal value; and provided further that when determining lease rent, the department shall consider the returns resulting from the presence of the lessee, including employment created and revenues generated.

     (c)  The department shall adopt rules pursuant to chapter 91 for purposes of this section.

     (d)  As used in this section:

     "Creative media" means any and all aspects of audio visual arts, including cinema, film, television, digital media, computer-generated and hand-drawn animation, 2D flash, 3D visual effects, post-production, web-series distribution via the Internet, video games, massive multi-player internet games, internet, and streaming.

     "Creative media facilities" means facilities used for the total or partial production of creative media.

     "Post-production" means production activities and services conducted after principal photography is completed, including but not limited to editing, film and video transfers, duplication, transcoding, dubbing, subtitling, credits, closed captioning, audio production, visual and auditory special effects, graphics, and animation.

     "Production" means a series of activities that are directly related to the creation of visual and cinematic imagery to be delivered via film, videotape, or digital media and to be sold, distributed, or displayed as entertainment or the advertisement of products for mass consumption, including scripting, casting, set design and construction, transportation, videography, photography, sound recording, interactive game design, and post-production."

     SECTION 3.  The department of land and natural resources shall adopt administrative rules pursuant to chapter 91 to effectuate the purposes of this Act before issuing any lease authorized by this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2020.

 

Report Title:

Creative Media; Negotiated Public Land Leases

 

Description:

Authorizes the Department of Land and Natural Resources to lease public lands for purposes of developing creative media production and post-production facilities by negotiation, without public auction.  Effective July 1, 2020.  (HB2338 HD1)

 

 

 

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