Bill Text: HI SB2827 | 2016 | Regular Session | Introduced
Bill Title: Creative Media and Film Infrastructure Special Fund; Hawaii Television and Film Development Board; Appropriation ($)
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-02-19 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB2827 Detail]
Download: Hawaii-2016-SB2827-Introduced.html
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THE SENATE |
S.B. NO. |
2827 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO FUNDING FOR CREATIVE MEDIA AND FILM DEVELOPMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Hawaii's film industry brings in an estimated $250,000,000 in production revenues per year, providing the State with an estimated economic impact of over $400,000,000 annually. The Hawaii film office in the creative industries division of the department of business, economic development, and tourism is involved in all aspects of this industry, including fulfilling its statutory duties for film permitting, tax incentive management, and studio operations and management.
With the passage of Act 89, Session Laws of Hawaii 2013, and enhancements to the motion picture, digital media, and film production income tax credit program, the demands on the Hawaii film office that has been operating with limited staff and resources have stretched those resources to capacity. While positions and some funding have been restored, the costs to support productions, manage the motion picture, digital media, and film production income tax credit program, and maintain the Hawaii film studio far exceed the existing general fund allocations.
This Act broadens the sources of revenue for and renames the special fund created in section 201-113, Hawaii Revised Statutes. By capturing revenues from the studio and other sources, the special fund will provide a necessary funding mechanism for ongoing basic repair and maintenance of the Hawaii film studio, which average $150,000 per year. With anticipated revenues generated by film studio rental of $600,000 annually, the department of business, economic development, and tourism will have the means to maintain the studio facility and support programs that are not currently possible with the existing general fund allocation.
SECTION 2. Chapter 201, Hawaii Revised Statutes, is amended by amending the title of part IX to read as follows:
"[[]PART IX.[]
HAWAII TELEVISION] CREATIVE MEDIA AND FILM [DEVELOPMENT]
INFRASTRUCTURE SPECIAL FUND"
SECTION 3. 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) Revenues, fees, and charges from the rental and operation of the Hawaii film studio;
(5) Revenues, fees, and charges from the processing of film permits pursuant to section 201-14; and
(6) 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 of
business,
economic development, and tourism to provide for:
(1) Operations, repair, and maintenance of the Hawaii film studio;
(2) Support for the operations of the Hawaii film office;
(3) Programs and initiatives for creative media industry development; and
(4) Programs that expand the skill sets of Hawaii's resident workforce in the creative media and film industries."
SECTION 4. Section 201-111, Hawaii Revised Statutes, is repealed.
["[§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.
"Fund" means the Hawaii television and film
development 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 repealed.
["[§201-112] Hawaii
television and film development board. (a) There is established the Hawaii television and film development
board. The board 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 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. 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
by designees.
The chairperson and vice chairperson of the board
shall be selected by the board by majority vote. Five members shall constitute
a quorum, whose affirmative vote shall be necessary for all actions by the board.
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 industry branch development manager
shall serve as the executive secretary of the board.
(d) The board may adopt rules pursuant to chapter 91
to effectuate the purposes of this part. "]
SECTION 6. 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 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000, or so much thereof as may be necessary, for fiscal year 2016-2017 to be deposited into the creative media and film infrastructure special fund. The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 8. There is appropriated out of the creative media and film infrastructure special fund the sum of $500,000 or so much thereof as may be necessary for fiscal year 2016-2017 for the purposes of the fund. The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 10. This Act, upon its approval, shall take effect on July 1, 2016.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Creative Media and Film Infrastructure Special Fund
Description:
Amends section 201-113, Hawaii Revised Statutes, to expand funding sources to support creative industries development within the Department of Business, Economic Development, and Tourism; and repeals sections 201-111, 201-112, and 201-114, Hawaii Revised Statutes.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
