Bill Text: HI SB1191 | 2018 | Regular Session | Amended

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Bill Title: Relating To Film And Digital Media Industry Development.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2017-11-30 - Carried over to 2018 Regular Session. [SB1191 Detail]

Download: Hawaii-2018-SB1191-Amended.html

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THE SENATE	S.B. NO.	1191
TWENTY-NINTH LEGISLATURE, 2017		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO FILM AND DIGITAL MEDIA INDUSTRY DEVELOPMENT.

 

 

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

 

     SECTION 1.  The legislature finds that the film industry in Hawaii is an important component of a diversified economy.  The legislature further finds that the motion picture, digital media, and film production income tax credit has been effective in stimulating the economy and creating quality jobs in a clean industry, while promoting Hawaii as a visitor destination.

     The legislature additionally finds that the film production process can extend over several years due to extensive planning and development in the preproduction stage.  The motion picture, digital media, and film production income tax credit's current sunset date of January 1, 2019, will discourage new productions that may be in the development and preproduction phases at that point in time.  An extension of the credit would enable Hawaii to remain competitive and comparable to other jurisdictions in attracting qualified productions that generate additional revenue, jobs, and tourism marketing exposure.

     The purpose of this Act is to:

     (1)  Extend the motion picture, digital media, and film production income tax credit for an additional ten years to provide economic incentive predictability for the film industry; and

     (2)  Increase accountability for educational and workforce development contributions associated with the credit.

     SECTION 2.  Section 235-17, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  To qualify for this tax credit, a production shall:

     (1)  Meet the definition of a qualified production specified in subsection (l);

     (2)  Have qualified production costs totaling at least $200,000;

     (3)  Provide the State, at a minimum, a shared-card, end-title screen credit, where applicable;

     (4)  Provide evidence of reasonable efforts to hire local talent and crew; and

     (5)  Provide evidence of financial or in-kind contributions [or educational or] to workforce development efforts[, in partnership with related local industry labor organizations, educational institutions, or both, toward the furtherance of the local film and television and digital media industries.] of the University of Hawaii through its system-wide creative media programs and projects, in furtherance of the local film, television, and digital media industries; provided that the University of Hawaii shall submit an annual report to the legislature, no later than twenty days prior to the convening of each regular session, on how the funds are being spent on workforce development, which shall include:

         (A)  Statistics on numbers of:

              (i)  Kindergarten through twelfth grade students participating in creative media programs and projects affiliated with the University of Hawaii;

             (ii)  Kindergarten through twelfth grade students whose projects received state, national, or international creative media awards within the previous year; and

            (iii)  Participating schools and organizations involved in creative media programs;

         (B)  Numbers of graduates obtaining jobs in the film, television, and digital media industries in Hawaii and outside of Hawaii; and

         (C)  The numbers of new jobs created and dollar value of projects developed in Hawaii and outside of Hawaii as a result of the contributions."

     SECTION 3.  Act 88, Session Laws of Hawaii 2006, as amended by section 3 of Act 89, Session Laws of Hawaii 2013, is amended by amending section 4 to read as follows:

     "SECTION 4. This Act shall take effect on July 1, 2006; provided that:

     (1)  Section 2 of this Act shall apply to qualified production costs incurred on or after July 1, 2006, and before January 1, [2019;] 2029; and

     (2)  This Act shall be repealed on January 1, [2019,] 2029, and section 235-17, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

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

 

Report Title:

Motion Picture, Digital Media, and Film Production Income Tax Credit; Income Tax; Sunset Date; University of Hawaii Creative Media

 

Description:

Extends the motion picture, digital media, and film production income tax credit sunset date to January 1, 2029.  Requires productions claiming the credit to contribute to creative media programs within the University of Hawaii, and the University of Hawaii to submit annual reports to the legislature on how the contributions are spent.  Takes effect on 1/1/2020.  (SD1)

 

 

 

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