Bill Text: HI HB773 | 2020 | Regular Session | Introduced
Bill Title: Relating To The Department Of Business, Economic Development, And Tourism.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Engrossed - Dead) 2020-06-22 - Received notice of discharge of all House conferees (Hse. Com. No. 363). [HB773 Detail]
Download: Hawaii-2020-HB773-Introduced.html
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
773 |
|
THIRTIETH LEGISLATURE, 2019 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature recognizes the economic and tourism benefits of Hawaii's creative economy, which represents fifty-four thousand entrepreneurs and businesses in the film, arts, culture, design, interactive, literary, broadcasting and publishing sectors. Anchored by the State's film industry, which had a record year in 2018 of an estimated $470,000,000 in production expenditures, these collective industry clusters are integral to the foundation of a vibrant diversified economy. Representing $3,800,000,000 of Hawaii's gross domestic product and cited as one of the State's emerging industry clusters in the recent report from the research and economic analysis division of the department of business, economic development, and tourism, the legislature sees the creative sectors as integral to the State's innovation strategy. With local screenwriters and songwriters from Hawaii island to Hanalei successfully pitching and having their work produced for networks, such as Lifetime Television, and licensing original songs for placement in television series, such as Fox's "Empire" or CW's "Nashville", the growth of the creative entrepreneurial sector jobs in film and media are accelerating through initiatives such as Creative Lab Hawaii.
The creative industries division of the department of business, economic development, and tourism has grown beyond the startup phase in 2003 into a catalyst for our innovation economy through its expanded responsibilities on talent, infrastructure, and access to capital. Key initiatives include developing a pipeline of talent, establishing access to decision makers in media, providing creative co-working sites and partnering with the university of Hawaii on the development of a commercial creative media and sound stage facility in west Oahu, and creating support jobs in media in the region and statewide.
The legislature also recognizes the need to better serve the neighbor islands to ensure that they are integrated into an overall growth strategy.
While growing the jobs in our creative sectors, the division and the State's film office are responsible for the statutory programs of film permitting facilitation and management of the film tax credit program. It is crucial to ensure the State's investment is managed by accounting and audit staffing in the creative industries division or the State's film program. As recommended in the department's response to a 2016 state auditor's report, the legislature concurs that additional positions dedicated to management, data collection, tracking, and reporting are critical to protecting the State's investment in this core industry. Therefore, the legislature finds that to adequately fulfill and strengthen Hawaii's creative economy, the creative industries division must be provided with adequate staffing.
The purpose of this Act to:
(1) Establish the office of creative media industries Hawaii in statute and provide that the Hawaii film office shall be an agency of that office;
(2) Specify that the office of creative media industries Hawaii shall include an administrative officer, who shall serve as chief operating officer, an administrator of creative ecosystem and workforce development, a film production industry manager, and employees as necessary to operate the office;
(3) Rename the existing Hawaii television and development board as the creative industries Hawaii advisory group and amend its duties accordingly;
(4) Rename the Hawaii television and film development special fund as the creative media and film infrastructure special fund and expand funding sources of the fund to support creative industries development within the department of business, economic development, and tourism;
(5) Provide appropriations for four full-time equivalent (4.0 FTE) positions, which shall be an administrative officer position; an accountant V position; an administrative specialist IV position; and a general professional VI position; and
(6) Provide additional appropriations for the office of creative media industries Hawaii.
SECTION 2. Chapter 201, Hawaii Revised Statutes, is amended by adding a new section to part IX to be appropriately designated and to read as follows:
"§201- Office
of creative media industries Hawaii; administration; Hawaii film office. (a)
There is established an office of creative media industries Hawaii within
the department. The office of creative media
industries Hawaii shall have:
(1) An administrative officer, who shall serve as chief operating officer;
(2) An administrator of creative ecosystem and workforce development;
(3) A film production industry manager; and
(4) Employees as necessary to operate the
office.
(b) The Hawaii film office shall be an agency of the office of creative media industries Hawaii."
SECTION 3. Chapter 201, Hawaii Revised Statutes, is amended by amending the title of part IX to read as follows:
"[[]PART IX.[] HAWAII TELEVISION] CREATIVE MEDIA INDUSTRIES
AND FILM DEVELOPMENT"
SECTION 4. Section 201-111, Hawaii Revised Statutes, is amended to read as follows:
"[[]§201-111[]] Definitions. As used in this part:
["Applicant"
means a person applying for a grant or venture capital investment from the
board under this part.
"Board"
means the Hawaii television and film development board.
"Eligible
Hawaii project" or "project" means an entertainment project in
which at least seventy-five per cent of the budget for the production costs,
excluding salaries and costs for the producer, director, writer, screenplay,
and actors in the project, is dedicated for the purchase or lease of goods or
services from a vendor or supplier who is located and doing business in the
State.]
"Creative
media" includes film, motion pictures, television, and digital media as
defined in section 235-17.
"Department"
means the department of business, economic development, and tourism.
"Fund"
means the [Hawaii television] creative media and film [development]
infrastructure special fund.
["Venture
capital investment" means any of the following investments in a project:
(1) Common or preferred stock and equity securities
without a repurchase requirement for at least five years;
(2) A right to purchase stock or equity
securities;
(3) Any debenture, whether or not convertible
or having stock purchase rights, which is subordinated, together with security
interests against the assets of the borrower, by their terms to all borrowings
of the borrower from other institutional lenders, and that is for a term of not
less than three years, and that has no part amortized during the first three
years; and
(4) General or limited partnership interests.]"
SECTION 5. Section 201-112, Hawaii Revised Statutes, is amended to read as follows:
"[[]§201-112[]] Creative industries Hawaii [television and film development board.]
advisory group. (a) There is established the creative
industries Hawaii [television and film development board.] advisory
group. The [board] advisory
group shall be attached to the department of business, economic
development, and tourism for administrative purposes only. [The board shall administer the grant and
venture capital investment programs and the Hawaii television and film
development special fund established under this part. The board shall also assess and consider the
overall viability and development of the television and film industries and make
recommendations to appropriate state or county agencies.]
(b) The [board] advisory group
shall be composed of nine members, four of whom shall be appointed by the
governor pursuant to section 26-34, and all of whom shall serve four-year
staggered terms. One of the governor's
appointments shall be made from a list of nominees submitted by the president
of the senate and another appointment shall be made from a list of nominees
submitted by the speaker of the house of representatives. The four appointed members shall possess a
current working knowledge of [the film, television, or entertainment industry.]
creative media. The director of
business, economic development, and tourism, and the chairs of the four county
film commissions or its equivalent, shall serve as ex officio[[],[]]
voting members, who may be represented on the [board] advisory group
by designees.
The
chairperson and vice chairperson of the [board] advisory group
shall be selected by the [board] advisory group by majority
vote. Five members shall constitute a
quorum, whose affirmative vote shall be necessary for all actions by the [board.]
advisory group. The members shall
serve without compensation but shall be reimbursed for expenses, including
travel expenses, necessary for the performance of their duties.
(c) The film production industry [branch
development] manager of the office of creative media industries Hawaii
shall serve as the executive secretary of the [board.] advisory group.
(d) The advisory group shall recommend:
(1) Programs and initiatives for creative and media industry development;
(2) Programs that expand the skills of Hawaii's
resident workforce, above and below the line, in the creative media industries;
and
(3) Infrastructure development and expansion to
support the creative media industries in Hawaii.
[(d)]
(e) The [board] advisory
group may adopt rules pursuant to chapter 91 to effectuate the purposes of
this part."
SECTION 6. Section 201-113, Hawaii Revised Statutes, is amended to read as follows:
"[[]§201-113[] Hawaii television] Creative media
and film [development] infrastructure special fund. (a)
There is established in the state treasury the [Hawaii television]
creative media and film [development] infrastructure special fund into which
shall be deposited:
(1) Appropriations by the legislature;
(2) Donations and contributions made by private individuals or organizations for deposit into the fund;
(3) Grants provided by governmental agencies or
any other source; [and
(4) Any profits or other amounts received from
venture capital investments.]
(4) All revenues, fees, and charges from the
rental and operation of the Hawaii film studio;
(5) All revenues, fees, and charges from the
processing of film permits pursuant to section 201-14; and
(6) All revenues, fees, and charges from the
processing of the motion picture, digital media, and film production income tax
credit pursuant to section 235-17.
(b) The fund shall be used by the [board to
assist in, and provide incentives for, the production of eligible Hawaii
projects that are in compliance with criteria and standards established by the
board in accordance with rules adopted by the board pursuant to chapter
91. In particular, the board shall adopt
rules to provide for the implementation of the following programs:
(1) A grant program. The board shall adopt rules pursuant to
chapter 91 to provide conditions and qualifications for grants. Applications for grants shall be made to the
board and shall contain such information as the board shall require by rules
adopted pursuant to chapter 91. At a
minimum, the applicant shall agree to the following conditions:
(A) The grant shall be used exclusively for
eligible Hawaii projects;
(B) The applicant shall have applied for or
received all applicable licenses and permits;
(C) The applicant shall comply with applicable
federal and state laws prohibiting discrimination against any person on the
basis of race, color, national origin, religion, creed, sex, age, or physical
handicap;
(D) The applicant shall comply with other
requirements as the board may prescribe;
(E) All activities undertaken with funds
received shall comply with all applicable federal, state, and county statutes
and ordinances;
(F) The applicant shall indemnify and save harmless
the State of Hawaii and its officers, agents, and employees from and against
any and all claims arising out of or resulting from activities carried out or
projects undertaken with funds provided hereunder, and procure sufficient
insurance to provide this indemnification if requested to do so by the
department;
(G) The applicant shall make available to the
board all records the applicant may have relating to the project, to allow the
board to monitor the applicant's compliance with the purpose of this chapter;
and
(H) The applicant, to the satisfaction of the
board, shall establish that sufficient funds are available for the completion
of the project for the purpose for which the grant is awarded; and
(2) A venture capital program. The board shall adopt rules pursuant to chapter
91 to provide conditions and qualifications for venture capital investments in
eligible Hawaii projects. The program
may include a written agreement between the borrower and the board, as the
representative of the State, that as consideration for the venture capital
investment made under this part, the borrower shall share any royalties,
licenses, titles, rights, or any other monetary benefits that may accrue to the
borrower pursuant to terms and conditions established by the board by rule
pursuant to chapter 91. Venture capital
investments may be made on such terms and conditions as the board shall
determine to be reasonable, appropriate, and consistent with the purposes and
objectives of this part.]
department to provide for:
(1) Operations, repair, and maintenance of the
Hawaii film studio;
(2) Support for the operations of the
department's film industry branch;
(3) Programs and initiatives for creative media
industry development; and
(4) Programs that expand the skills of Hawaii's resident workforce in the creative media and film industries."
SECTION 7. Section 201-114, Hawaii Revised Statutes, is repealed.
["[§201-114] Inspection of premises and records. The board shall have the right to inspect, at
reasonable hours, the plant, physical facilities, equipment, premises, books,
and records of any applicant in connection with the processing of a grant to
the applicant."]
SECTION 8. Notwithstanding the renaming of the Hawaii television and film development board as the Hawaii creative industries advisory group as provided in this Act, and the film industry branch within the department of business, economic development, and tourism shall continue to be maintained without any reduction in staffing or funding, and all officers and employees in the branch shall continue to perform their functions and duties under this Act.
SECTION 9. There is appropriated out of the general revenues of the State of Hawaii the sum of $350,000 or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 for the establishment within the office of creative media industries Hawaii of:
(1) One full-time equivalent (1.0 FTE) administrative officer position;
(2) One full-time equivalent (1.0 FTE) accountant V position;
(3) One full-time equivalent administrative specialist IV position; and
(4) One full-time equivalent (1.0 FTE) general professional VI position,
exempt from chapters 76 and 89, Hawaii Revised Statutes, and for other expenses related to these positions.
The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 10. There is appropriated out of the general revenues of the State of Hawaii the sum of $300,000 or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021, to be expended by the department of business, economic development, and tourism as follows:
(1) $200,000 to support creative media laboratory programs on neighbor islands; and
(2) $100,000 for website creation and improvements for the office of creative media industries Hawaii and the Hawaii film office.
The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 11. There is appropriated out of the general revenues of the State of Hawaii the sum of $545,000 or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021, for equipment and staffing of four creative media co-working sites statewide.
The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 12. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 13. This Act shall take effect on July 1, 2019.
|
INTRODUCED BY: |
_____________________________ |
|
|
|
Report Title:
DBEDT; Creative Media Industries; Creative Media and Film Infrastructure Special Fund; Appropriation
Description:
Establishes the office of creative media industries Hawaii in statute, and provide that the Hawaii film office shall be an agency of that office. Renames the Hawaii Television and Film Development Board as the Creative Industries Hawaii Advisory Group. Renames the Hawaii Television and Film Development Special Fund as the Creative Media and Film Infrastructure Special Fund. Expands funding sources for the Creative Media and Film Infrastructure Special Fund to support creative industries development within the Department of Business, Economic Development, and Tourism. Amends the purposes for which the Creative Media and Film Infrastructure Special Fund may be used. Establishes and appropriates funds for positions. Appropriates funds for operations and programs.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
