Bill Text: HI SB3265 | 2024 | Regular Session | Amended
Bill Title: Relating To Film Industry Development.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Engrossed - Dead) 2024-03-22 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Martinez, Nakashima, Quinlan excused (3). [SB3265 Detail]
Download: Hawaii-2024-SB3265-Amended.html
THE SENATE |
S.B. NO. |
3265 |
THIRTY-SECOND LEGISLATURE, 2024 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO FILM INDUSTRY DEVELOPMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. 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- Hawaii
film advisory council; established. (a) There is established within
the department for administrative purposes only the Hawaii film advisory council. The Hawaii film advisory council shall consist of up to thirteen members who shall be appointed by the governor in the manner prescribed
in section 26-34, except as otherwise provided in this section, and shall be
composed of:
(1) One representative of each county's
film office;
(2) One representative of the Hawaii
state film office;
(3) One member representing the
membership of the Hawaii
film and entertainment board;
(4) One member representing all film
industry labor unions;
(5) One studio production representative;
(6) One department of education career
and technical education representative;
(7) One university or higher education representative;
(8) One workforce development council
representative;
(9) One entrepreneurial film or media
sector business representative;
(10) One Native Hawaiian and Pacific islands cultural organization representative; and
(11) The director of business, economic development, and tourism or the
director's designee, who shall serve as an ex
officio, voting member of the council.
(b) Each member identified in
subsection (a) shall have experience
in the industry they represent in
one or more of the following fields:
(1) Film and television production;
(2) Film commission management;
(3) Investment and tax credits;
(4) Production finance and accounting;
(5) Post-production;
(6) Entertainment industry labor union
and guild leadership;
(7) Hawaii production organization and nonprofit production organization;
(8) Workforce and skills development training organization; or
(9) Commercial real estate and development.
(c) The purpose of the Hawaii film advisory council shall be to:
(1) Advise, make
recommendations to, and provide industry insights to the
department to increase business development,
workforce, jobs, and infrastructure in the film industry statewide; and
(2) Provide the
department with input on setting strategic priorities to accelerate the growth
of the film industry.
(d) The Hawaii film advisory
council shall appoint a chairperson and other leadership positions as deemed necessary from among its members.
(e) The Hawaii film advisory council shall make recommendations to the department
on the appointment of a film industry development liaison, who shall be exempt from chapter 76."
SECTION 2. Section 235-17, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (h) to read:
"(h) Every taxpayer claiming a tax credit under this section for a qualified production shall, no later than ninety days following the end of each taxable year in which qualified production costs were expended, submit a written, sworn statement to the department of business, economic development, and tourism that identifies:
(1) All qualified production costs as provided by subsection (a), if any, incurred in the previous taxable year;
(2) The amount of tax credits claimed pursuant to this section, if any, in the previous taxable year; and
(3) The number of total hires versus the number of local hires by category and by county.
If the qualified production costs of a taxpayer exceed $1,000,000 in a taxable year, the written, sworn statement shall be accompanied by an independent third party certification, performed by a qualified certified public accountant, that verifies all representations made for the purpose of claiming the credit under this section. The certification shall be prepared and submitted in accordance with standards and procedures prescribed by the department of business, economic development, and tourism and department of taxation. This information may be reported from the department of business, economic development, and tourism to the legislature pursuant to subsection (i)(4)."
2. By amending subsection (o) to read:
"(o) For the purposes of this section:
"Commercial":
(1) Means an advertising message that is filmed using film, videotape, or digital media, for dissemination via television broadcast or theatrical distribution;
(2) Includes a series of advertising messages if all parts are produced at the same time over the course of six consecutive weeks; and
(3) Does not include an advertising message with Internet‑only distribution.
"Digital media" means production methods and platforms directly related to the creation of cinematic imagery and content, specifically using digital means, including but not limited to digital cameras, digital sound equipment, and computers, to be delivered via film, videotape, interactive game platform, or other digital distribution 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, special effects (visual and sound), 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 public consumption, including but not limited to scripting, casting, set design and construction, transportation, videography, photography, sound recording, interactive game design, and post-production.
"Qualified production":
(1) Means a production, with expenditures in
the State, for the total or partial production of a feature‑length motion
picture, short film, made‑for‑television movie, commercial, music
video, interactive game, television (inclusive
of broadcast and streaming platforms) series pilot, single season (up
to twenty‑two episodes[)] for
broadcast television; and up to eight episodes for an ongoing series for
streaming platforms) of a [television] series [regularly]
filmed in the State [(if]. If
the number of episodes per single season for
a broadcast series exceeds twenty-two[,] episodes and if a
streaming series exceeds eight episodes, additional
episodes for the same season shall constitute a separate qualified production[),]. A "qualified
production" also includes a television or streaming platform
special, single [television] episode that is not part of a television or streaming platform
series regularly filmed or based in the State, national magazine show, [or]
and national talk show. For the
purposes of subsections (d) and (l), each of the aforementioned qualified
production categories shall constitute separate, individual qualified
productions; and
(2) Does not include:
(A) News;
(B) Public affairs programs;
(C) Non-national magazine or talk shows;
(D) Televised sporting events or activities;
(E) Productions that solicit funds;
(F) Productions produced primarily for industrial, corporate, institutional, or other private purposes; and
(G) Productions that include any material or performance prohibited by chapter 712.
"Qualified production costs" means the costs incurred by a qualified production within the State that are subject to the general excise tax under chapter 237 at the highest rate of tax or income tax under this chapter if the costs are not subject to general excise tax and that have not been financed by any investments for which a credit was or will be claimed pursuant to section 235-110.9. Qualified production costs include but are not limited to:
(1) Costs incurred during preproduction such as location scouting and related services;
(2) Costs of set construction and operations, purchases or rentals of wardrobe, props, accessories, food, office supplies, transportation, equipment, and related services;
(3) Wages or salaries of cast, crew, and musicians;
(4) Costs of photography, sound synchronization, lighting, and related services;
(5) Costs of editing, visual effects, music, other post‑production, and related services;
(7) Costs associated with the contracting and licensing of Hawaii-originated music to be utilized in on-camera use or post-production;
[(6)] (8) Rentals and fees for use of local
facilities and locations, including rentals and fees for use of state and
county facilities and locations that are not subject to general excise tax
under chapter 237 or income tax under this chapter;
[(7)] (9) Rentals of vehicles and lodging for cast and
crew;
[(8)] (10) Airfare for flights to or from Hawaii,
and interisland flights;
[(9)] (11) Insurance and bonding;
[(10)] (12) Shipping of equipment and supplies to
or from Hawaii, and interisland shipments; and
[(11)] (13) Other direct production costs
specified by the department in consultation with the department of business,
economic development, and tourism;
provided that any government-imposed fines, penalties, or interest that are incurred by a qualified production within the State shall not be "qualified production costs". "Qualified production costs" does not include any costs funded by any grant, forgivable loan, or other amounts not included in gross income for purposes of this chapter.
"Streaming platform" means an online provider of media content that delivers the content via internet connection to the subscriber's computer, television, or mobile device through a paid subscription."
SECTION 3.
Act 143, Session Laws of Hawaii 2017, is amended by amending section 6
to read as follows:
"SECTION
6. [No later than January 1, 2018,
and each January 1 thereafter, each film production that has production
expenditures of $1,000,000 or more and is claiming a tax credit pursuant to section
235-17, Hawaii Revised Statutes, shall obtain an independent third party
certification of qualified production costs eligible for the motion picture,
digital media, and film production income tax credit in the form of a tax
opinion, as required under section 235-17(h), Hawaii Revised Statutes,
submitted to the department of business, economic development, and tourism.]
Repealed."
SECTION 4. The department of business, economic development, and tourism shall establish one full-time equivalent (1.0 FTE) permanent film industry development liaison position to oversee development of the film industry, which shall be exempt from chapter 76, Hawaii Revised Statutes.
PART II
SECTION 5. Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The civil service to which this chapter applies shall comprise all positions in the State now existing or hereafter established and embrace all personal services performed for the State, except the following:
(1) Commissioned and enlisted personnel of the Hawaii National Guard as such, and positions in the Hawaii National Guard that are required by state or federal laws or regulations or orders of the National Guard to be filled from those commissioned or enlisted personnel;
(2) Positions
filled by persons employed by contract where the director of human resources
development has certified that the service is special or unique or is essential
to the public interest and that, because of circumstances surrounding its
fulfillment, personnel to perform the service cannot be obtained through normal
civil service recruitment procedures.
Any [such] contract may be for any period not exceeding one year;
(3) Positions that must be filled without delay to comply with a court order or decree if the director determines that recruitment through normal recruitment civil service procedures would result in delay or noncompliance, such as the Felix-Cayetano consent decree;
(4) Positions filled by the legislature or by either house or any committee thereof;
(5) Employees in the office of the governor and office of the lieutenant governor, and household employees at Washington Place;
(6) Positions filled by popular vote;
(7) Department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor or are required by law to be confirmed by the senate;
(8) Judges, referees, receivers, masters, jurors, notaries public, land court examiners, court commissioners, and attorneys appointed by a state court for a special temporary service;
(9) One bailiff for the chief justice of the supreme court who shall have the powers and duties of a court officer and bailiff under section 606-14; one secretary or clerk for each justice of the supreme court, each judge of the intermediate appellate court, and each judge of the circuit court; one secretary for the judicial council; one deputy administrative director of the courts; three law clerks for the chief justice of the supreme court, two law clerks for each associate justice of the supreme court and each judge of the intermediate appellate court, one law clerk for each judge of the circuit court, two additional law clerks for the civil administrative judge of the circuit court of the first circuit, two additional law clerks for the criminal administrative judge of the circuit court of the first circuit, one additional law clerk for the senior judge of the family court of the first circuit, two additional law clerks for the civil motions judge of the circuit court of the first circuit, two additional law clerks for the criminal motions judge of the circuit court of the first circuit, and two law clerks for the administrative judge of the district court of the first circuit; and one private secretary for the administrative director of the courts, the deputy administrative director of the courts, each department head, each deputy or first assistant, and each additional deputy, or assistant deputy, or assistant defined in paragraph (16);
(10) First deputy and deputy attorneys general, the administrative services manager of the department of the attorney general, one secretary for the administrative services manager, an administrator and any support staff for the criminal and juvenile justice resources coordination functions, and law clerks;
(11) (A) Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, no more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work;
(B) Effective July 1, 2003, teaching assistants, educational assistants, bilingual/bicultural school-home assistants, school psychologists, psychological examiners, speech pathologists, athletic health care trainers, alternative school work study assistants, alternative school educational/supportive services specialists, alternative school project coordinators, and communications aides in the department of education;
(C) The special assistant to the state librarian and one secretary for the special assistant to the state librarian; and
(D) Members of the faculty of the University of Hawaii, including research workers, extension agents, personnel engaged in instructional work, and administrative, professional, and technical personnel of the university;
(12) Employees engaged in special, research, or demonstration projects approved by the governor;
(13) (A) Positions filled by inmates, patients of state institutions, persons with severe physical or mental disabilities participating in the work experience training programs;
(B) Positions filled with students in accordance with guidelines for established state employment programs; and
(C) Positions that provide work experience training or temporary public service employment that are filled by persons entering the workforce or persons transitioning into other careers under programs such as the federal Workforce Investment Act of 1998, as amended, or the Senior Community Service Employment Program of the Employment and Training Administration of the United States Department of Labor, or under other similar state programs;
(14) A custodian or guide at Iolani Palace, the Royal Mausoleum, and Hulihee Palace;
(15) Positions
filled by persons employed on a fee, contract, or piecework basis, who may
lawfully perform their duties concurrently with their private business or
profession or other private employment and whose duties require only a portion
of their time, if it is impracticable to ascertain or anticipate the portion of
time to be devoted to the service of the State;
(16) Positions of first
deputies or first assistants of each department head appointed under or in the
manner provided in section 6, article V, of the Hawaii State Constitution;
three additional deputies or assistants either in charge of the highways,
harbors, and airports divisions or other functions within the department of
transportation as may be assigned by the director of transportation, with the
approval of the governor; one additional deputy in the department of
human services either in charge of welfare or other functions within the
department as may be assigned by the director of human services;
four additional deputies in the department of health, each in charge of one of
the following: behavioral health,
environmental health, hospitals, and health resources administration, including
other functions within the department as may be assigned by the director of
health, with the approval of the governor; two additional deputies in charge of
the law enforcement programs, administration, or other functions within the
department of law enforcement as may be assigned by the director of law
enforcement, with the approval of the governor; three additional deputies each
in charge of the correctional institutions, rehabilitation services and
programs, and administration or other functions within the department of corrections
and rehabilitation as may be assigned by the director or corrections and
rehabilitation, with the approval of the governor; an administrative assistant
to the state librarian; and an administrative assistant to the superintendent
of education;
(17) Positions specifically exempted from this part by any other law; provided that:
(A) Any exemption created after July 1, 2014, shall expire three years after its enactment unless affirmatively extended by an act of the legislature; and
(B) All of the positions defined by paragraph (9) shall be included in the position classification plan;
(18) Positions in the state foster grandparent program and positions for temporary employment of senior citizens in occupations in which there is a severe personnel shortage or in special projects;
(19) Household employees at the official residence of the president of the University of Hawaii;
(20) Employees in the department of education engaged in the supervision of students during meal periods in the distribution, collection, and counting of meal tickets, and in the cleaning of classrooms after school hours on a less than half-time basis;
(21) Employees hired under the tenant hire program of the Hawaii public housing authority; provided that not more than twenty-six per cent of the authority's workforce in any housing project maintained or operated by the authority shall be hired under the tenant hire program;
(22) Positions of the federally funded expanded food and nutrition program of the University of Hawaii that require the hiring of nutrition program assistants who live in the areas they serve;
(23) Positions filled by persons with severe disabilities who are certified by the state vocational rehabilitation office that they are able to perform safely the duties of the positions;
(24) The sheriff;
(25) A gender and other fairness coordinator hired by the judiciary;
(26) Positions in the Hawaii National Guard youth and adult education programs;
(27) In the state energy office in the department of business, economic development, and tourism, all energy program managers, energy program specialists, energy program assistants, and energy analysts;
(28) Administrative
appeals hearing officers in the department of human services;
(29) In
the Med-QUEST division of the department of human services, the division
administrator, finance officer, health care services branch administrator,
medical director, and clinical standards administrator;
(30) In the director's
office of the department of human services, the enterprise officer, information
security and privacy compliance officer, security and privacy compliance
engineer, security and privacy compliance analyst, information technology
implementation manager, assistant information technology implementation
manager, resource manager, community/project development director, policy
director, special assistant to the director, and limited English proficiency
project manager/coordinator;
(31) The
Alzheimer's disease and related dementia services coordinator in the executive
office on aging;
(32) In the Hawaii emergency management agency, the executive officer, public information officer, civil defense administrative officer, branch chiefs, and emergency operations center state warning point personnel; provided that, for state warning point personnel, the director shall determine that recruitment through normal civil service recruitment procedures would result in delay or noncompliance;
(33) The executive director and seven full-time administrative positions of the school facilities authority;
(34) Positions in the Mauna Kea stewardship and oversight authority;
(35) In
the office of homeland security of the department of law enforcement, the
statewide interoperable communications coordinator;
[and]
(36) In the social services
division of the department of human services, the business technology analyst[.]; and
(37) In the
creative industries division of the department of business, economic
development, and tourism, the film industry development liaison.
The director shall determine the applicability of this section
to specific positions.
Nothing in this section shall be deemed to affect the civil
service status of any incumbent as it existed on July 1, 1955."
PART III
SECTION 6. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in Act 164, Regular Session of 2023, and this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $ or per cent. This current declaration takes into account general fund appropriations authorized for fiscal year 2024-2025 in Act 164, Regular Session of 2023, and this Act only. The reasons for exceeding the general fund expenditure ceiling are that:
(1) The appropriation made in this Act is necessary to serve the public interest; and
(2) The appropriation made in this Act meets the needs addressed by this Act.
SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 to establish one full-time equivalent (1.0 FTE) film industry development liaison position and associated administrative costs.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
PART IV
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION
9. This Act shall take effect on July 1, 3000; provided that sections 2 and 3 shall apply to
expenditures made after December 31, 2024.
Report Title:
DBEDT; Hawaii Film Advisory Council; Motion Picture, Digital Media, and Film Production Income Tax Credit; Position; Appropriation; Expenditure Ceiling
Description:
Establishes the Hawaii Film Advisory Council. Amends the motion picture, digital media, and film production income tax credit to: (1) Clarify and amend the requirement for an independent third-party certification; (2) Expand the definition of "qualified production" to include streaming platforms; and (3) Expand the definition of "qualified production costs" to include certain costs associated with products created by Hawaii businesses for use in a production and contracting and licensing of Hawaii-originated music for on-camera use or post-production. Establishes and appropriates funds for a film industry development liaison within the Creative Industries Division of the Department of Business, Economic Development, and Tourism. Effective 7/1/3000. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.