STAND. COM. REP. NO. 1099

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 37
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred H.B. No. 37, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO FILM PRODUCTION FUNDING,"

begs leave to report as follows:

     The purpose of this measure is to establish the State of
Hawaii film revolving fund within the Department of Business,
Economic Development, and Tourism (DBEDT).

     This measure also makes appropriations to the new fund and
to assist Hawaii-based film companies in the production of
documentary films.

     Testimony in support of the measure was received from the
Kauai County Office of Economic Development, the Hawaii State
AFL-CIO, the Screen Actors Guild, First Daughter MediaWorks, ADR
Model and Talent Agency, the Hawaii Stunt Association, and three
individuals.  Testimony in support of the concept of the measure
was received from DBEDT.  The Department of Budget and Finance
testified in opposition to the measure.

     Your Committee finds that film production is a viable
economic development opportunity for the State and its citizens.
It is necessary, however, for the State to provide incentives for
production companies to film in the State.

     Your Committee has amended this measure by:

 
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                                   STAND. COM. REP. NO. 1099
                                   Page 2



     (1)  Adding provisions to exempt from the GET and Use tax
          amounts received from construction of an entertainment
          industry production facility; and

     (2)  Adding an appropriation for coproduction costs of
          locally produced programming that achieves
          international recognition, and can serve multiple
          tourism, marketing, and income-producing objectives.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 37, H.D. 1, as amended herein, and recommends that it
pass Second Reading in the form attached hereto as H.B. No. 37,
H.D. 1, S.D. 1, and be referred to the Committee on Ways and
Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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