Report Title:

Hawaii Film Commission

 

Description:

Establishes the Hawaii film commission, to be headed by the Hawaii film development board, to facilitate the growth and development of a film industry in Hawaii. Establishes the Hawaii film development special fund. Repeals the existing board and special fund. Appropriates funds.

 

THE SENATE

S.B. NO.

2415

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 
   

A BILL FOR AN ACT

 

relating to a hawaii film commission.

 

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

SECTION 1. The legislature finds that there is a continuing need to diversify Hawaii's economy to reduce the State's dependence on tourism. One effective way to achieve this objective is to encourage targeted industries to succeed. In particular, the legislature finds that Hawaii's film industry, while still a developing industry, has the capacity to grow into a viable sector to help diversify Hawaii's economy.

The legislature finds that the film industry is an environmentally friendly, high paying industry, which fits into the State's sustainable development approach. To give this industry greater visibility and flexibility in pursuing economic development opportunities, the legislature further finds that it is necessary to create a new agency, attached to the department of business, economic development, and tourism for administrative purposes only. This organization would replace the existing Hawaii television and film development board, which plays a mostly advisory role to the department with respect to the industry.

Accordingly, the purpose of this Act is to establish a Hawaii film commission, to be placed within the department of business, economic development, and tourism for administrative purposes, to provide greater status, exposure, development, growth, and flexibility for the State's film industry. In addition, this Act:

(1) Changes the name of the Hawaii television and film development board to the Hawaii film development board and enhances the board's decision making powers;

(2) Gives the board the ability to set the salary and duties of the executive director of the commission;

(3) Increases the size of the board to include additional members from the film industry;

(4) Includes the chairperson of the board of land and natural resources as a board member;

(5) Provides that the chairperson of the film development board is to be a member of the industry appointed by the governor and not one of the government ex officio members;

(6) Transfers the management and operation of the film facilities and the Hawaii film facilities special fund to the Hawaii film commission; and

(7) Eliminates venture capital responsibilities from the television and film development special fund, changes the name of the fund to the film development special fund, and adds the responsibility for awarding incentives to attract film production to Hawaii.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

Hawaii film commission

PART I. GENERAL PROVISIONS

§ -1 Definitions. As used in this chapter:

"Agency" means any agency, department, authority, board, commission, the University of Hawaii, or any other unit of the State or its political subdivisions.

"Applicant" means a person applying for a grant or other incentive from the board under this chapter.

"Board" means the Hawaii film development board established in section -3, and any successor thereto.

"Commission" means the Hawaii film commission established in section -2.

"Department" means the department of business, economic development, and tourism.

"Eligible Hawaii project" or "project" means an entertainment project in which at least fifty per cent of the expenditure for the production costs, excluding salaries and costs for the producer, director, writer, screenplay, principal actors, and post-production in the project, is used for the purchase or lease of goods or services from a vendor or supplier who is located and doing business in the State.

"Film" means any medium used to record still or moving images or audio, including video, multi-media photography, and related media.

§ -2 Hawaii film commission; establishment; purpose; duties; executive director. (a) There is established the Hawaii film commission, which shall be a body corporate and a public instrumentality of the State, for the purpose of implementing this chapter. The commission shall be placed within the department of business, economic development, and tourism for administrative purposes only.

(b) The purpose of the commission shall be to facilitate the growth and development of a film industry in Hawaii. To accomplish this objective, the commission, under the direction of the board established in section -3, shall:

(1) Administer the grant and incentive programs and the Hawaii film development special fund established under this chapter;

(2) Provide support and services to the State's film industry;

(3) Promote and market Hawaii as a locale for film production;

(4) Provide advice on policy and planning for economic development relating to film;

(5) Assess and consider the overall viability and development of the film industry in Hawaii and make recommendations to appropriate state or county agencies;

(6) Administer consolidated film permit processing; and

(7) Manage the Hawaii state film production facilities and administer the Hawaii film facilities special fund.

(c) The governing body of the commission shall consist of a board of directors as provided in section -3.

(d) The board shall appoint an executive director to serve as the chief executive officer of the commission, who shall serve at the pleasure of the board and shall be exempt from chapter 76. The board shall set the salary and duties of the executive officer.

§ -3 Hawaii film development board. (a) The Hawaii film commission shall be headed by an executive board to be known as the Hawaii film development board.

(b) The board shall be composed of twelve voting members, six of whom shall be appointed by the governor pursuant to section 26-34, and all of whom shall serve four-year staggered terms. Two of the governor's appointments shall be made from a list of nominees submitted by the president of the senate, and another two appointments shall be made from a list of nominees submitted by the speaker of the house of representatives. The six appointed members shall possess a current working knowledge of the film or entertainment industry.

(c) The following members shall serve as ex officio voting members:

(1) The director of business, economic development, and tourism, or a designee;

(2) The chairperson of the board of land and natural resources, or a designee;

(3) The coordinators, or their designees, of the four county film offices or their equivalent.

(d) The chairperson and vice chairperson of the board shall be selected by the board by majority vote from among the six members appointed by the governor. Seven members shall constitute a quorum, whose affirmative vote shall be necessary for all actions by the board.

(e) The members shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(f) The film industry branch development manager shall serve as the executive secretary of the board.

§ -4 Powers. Except as otherwise limited by this chapter, the board may:

(1) Sue and be sued;

(2) Have a seal and alter the same at pleasure;

(3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter, provided that the commission may enter into contracts and agreements for a period of up to five years;

(4) Make and alter bylaws for its organization and internal management;

(5) Adopt rules in accordance with chapter 91 with respect to its projects, operations, properties, and facilities, or otherwise as may be necessary to effectuate the purposes of this chapter;

(6) Through its executive director represent the commission in communications with the governor and with the legislature;

(7) Through its executive director appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapters 76 and 78;

(8) Through its executive director purchase supplies, equipment, or furniture;

(9) Through its executive director allocate the space or spaces which are to be occupied by the commission and appropriate staff;

(10) Engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(11) Procure insurance against any loss in connection with its property and other assets and operations in such amounts from such insurers as it deems desirable;

(12) Contract for, and accept gifts or grants in any form from any agency or any other source;

(13) Create a vision and develop a long range plan for the development of the film industry in Hawaii;

(14) Develop, coordinate, and implement state policies and directions for film-related activities, taking into account the economic, social, and physical impacts of film industry development on the State;

(15) Develop and implement the State's film marketing plan to promote and market the State as a desirable locale for film production;

(16) Engage the services of qualified persons to implement the State's film marketing plan or portions thereof as determined by the board;

(17) Have a permanent, strong focus on marketing and promotion of the film industry in the State;

(18) Conduct film market development-related research as necessary;

(19) Coordinate with all agencies and the private sector in the development of film-related activities and resources;

(20) Work to eliminate or reduce barriers to film production in the State, including coordinating with other public agencies as appropriate;

(21) Coordinate the development of new film projects and activities with the public and private sectors;

(22) Conduct a public information program to inform the public of film-related issues as necessary;

(23) Establish a program to monitor, investigate, and respond to complaints about problems resulting directly or indirectly from the film industry and take appropriate action as necessary; and

(24) Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this chapter.

§ -5 Meetings of the board. (a) The meetings of the board shall be open to the public as provided in section 92-3, except that when it is necessary for the board to receive information that is proprietary to a particular enterprise or the disclosure of which might be harmful to the business interests of the enterprise, the board may enter into an executive meeting that is closed to the public.

(b) Meetings of the board shall be subject to the procedural requirements of section 92-4, and this authorization shall be in addition to the public meeting exceptions listed in section 92-5, to enable the board to respect the proprietary requirements of enterprises with which it has business dealings.

§ -6 Exemption from administrative supervision of boards and commissions. Notwithstanding any law to the contrary, the commission shall be exempt from section 26-35 with the exception of section 26-35(2), (3), (7) and (8).

§ -7 Film marketing plan; measures of effectiveness. (a) The commission shall be responsible for developing a film marketing plan that shall be updated every three years and include the following:

(1) Identification and evaluation of current and future film needs;

(2) Goals and objectives in accordance with identified needs;

(3) Statewide promotional and marketing efforts and programs;

(4) Targeted film markets; and

(5) Measures of effectiveness for the commission's promotional programs.

(b) In accordance with subsection (a), the commission shall be responsible for developing measures of effectiveness to assess the overall benefits and effectiveness of the film marketing plan and include documentation of the directly attributable benefits of the plan to the following:

(1) Hawaii's film industry;

(2) Employment in Hawaii; and

(3) State taxes.

§ -8 Film-related activities. (a) The commission may enter into contracts and agreements that include the following:

(1) Film promotion, marketing, and development;

(2) Market development-related research;

(3) Product development and diversification issues;

(4) Promotion, development, and coordination of film-related activities and events;

(5) Promotion of Hawaii, through a coordinated statewide effort, as a locale for film production;

(6) Film public information programs;

(7) Programs to monitor and investigate complaints about the problems resulting from the film industry in the State;

(8) Film education programs;

(9) Operation of film facilities; and

(10) All other activities necessary to carry out the intent of this chapter.

(b) The commission staff shall be responsible for monitoring and facilitating all functions developed in accordance with subsection (a).

§ -9 Consolidated film permit processing. (a) The commission shall consult with state and county agencies in order to identify sites that can be used for making films under terms and conditions as may be determined by the state or county agency having jurisdiction over the sites.

(b) The commission may accept an application from any person who proposes to make a film at one or more sites on state or county lands, whether or not set aside under section 171-11.

(c) The applicant shall identify the sites to be covered by the permit and provide other information as may be required by the commission.

(d) The commission may approve and issue a permit to film at any of the sites identified by the appropriate state or county agency under subsection (a). If any site requested for use by the applicant is not identified under subsection (a), the commission shall consult with the appropriate state or county agency having jurisdiction over the site to obtain a permit. If the matter of a permit cannot be resolved in this manner, the commission shall refer the application to the appropriate state or county agency to obtain a permit.

(e) The commission may make changes to, and extensions of, any approved permits so long as the changes and extensions do not conflict with the policies, terms, and conditions set forth by the agency having jurisdiction over the site in question.

(f) The commission may establish memoranda of agreement or adopt rules to implement the intent and purposes of this section.

(g) Nothing in this section shall be construed as waiving the authority of any county or the department of transportation of the State to require a person to obtain a permit from the department or county where the production takes place on or from a public highway.

(h) A vessel engaged in temporary use for film production purposes in accordance with a film permit issued by the commission shall not be considered to be a "commercial vessel" within the meaning of section 200-9, 200-10, or 200-39; provided that:

(1) The period of temporary use does not exceed fourteen hours per day, five days per week, excluding weekends, and for a period not to exceed thirty calendar days; and

(2) The commission may make allowances to include weekends for film production purposes due to inclement weather conditions during the weekday period.

PART II. SPECIAL FUNDS; EXEMPTIONS; REPORTS

§ -11 Hawaii film development special fund. (a) There is established in the state treasury the Hawaii film development 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; and

(3) Grants and any other moneys provided by agencies or any other source.

(b) Moneys in the fund may be placed in interest-bearing accounts or otherwise invested by the commission until such time as the moneys may be needed. All interest accruing from the investment of these moneys shall be credited to the fund.

(c) The fund shall be used by the board to assist in, and provide incentives for, the production of 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 to fund and assist independent film makers in Hawaii to produce films in the State. 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 agree to obtain 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, sexual preference, 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 laws;

(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 under this chapter, 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.

(2) An incentive program to encourage and attract the production of films in Hawaii utilizing primarily local creative and technical personnel, and to promote and fund film production apprenticeships and apprenticeship programs, in order to build Hawaii's film industry. The board shall adopt rules pursuant to chapter 91 to implement the incentive program, including applicant conditions, which may include low-interest loans and other appropriate incentives regarding eligible Hawaii projects.

(d) The commission may use all appropriations and other moneys in the fund not appropriated for a designated purpose to make grants or loans.

(e) Moneys in the fund shall be used by the commission for the purposes of this chapter; provided that:

(1) An amount of not more than three per cent of the amount in the fund on July 1 of each year shall be used for administrative expenses for that fiscal year; and

(2) Of the amount in paragraph (1), the sum of $15,000 shall be made available for a protocol fund to be expended at the discretion of the executive director.

§ -12 Hawaii film facility special fund. There is established in the state treasury a fund to be known as the Hawaii film facility special fund, into which shall be deposited all moneys and fees from tenants or other users of the commission's film facility, and appropriations from the legislature. All moneys in the fund are hereby appropriated for the purposes of and shall be expended by the commission for the operation, maintenance, and management of its film facility.

§ -13 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 and administration of a grant to the applicant.

§ -14 Exemption of commission from taxation and Hawaii public procurement code. (a) All revenues and receipts derived by the commission from any project, project agreement, or other agreement pertaining to any project shall be exempt from all state taxation. Any right, title, and interest of the commission in any project shall also be exempt from all state taxation. Except as otherwise provided by law, the interest of a qualified person or other user of a project or a project agreement or other agreements related to a project shall not be exempt from taxation to a greater extent than it would be if the costs of the project were directly financed by the qualified person or user.

(b) The commission shall not be subject to chapter 103D and any and all other requirements of law for competitive bidding for project agreements or other contracts unless a project agreement with respect to a project requires otherwise.

§ -15 Assistance by state and county agencies. Any state or county agency may render services upon request of the commission.

§ -16 Declaration of public function, purpose, and necessity. The powers and functions granted to and exercised by the commission under this chapter are declared to be public and governmental functions, exercised for a public purpose, and matters of public necessity.

§ -17 Court proceedings; preferences; venue. (a) Any action or proceeding to which the commission, the State, or the county may be a party, in which any question arises as to the validity of this chapter, shall be preferred over all other civil cases, except election cases, in the circuit court of the circuit where the case or controversy arises, and shall be heard and determined in preference to all other civil cases pending therein except election cases, irrespective of position on the calendar.

(b) Upon application of counsel to the commission, the same preference shall be granted in any action or proceeding questioning the validity of this chapter in which the commission may be allowed to intervene.

(c) Any action or proceeding to which the commission, the State, or the county may be a party, in which any question arises as to the validity of this chapter or any portion of this chapter, or any action of the commission may be filed in the circuit court of the circuit where the case or controversy arises, which court is hereby vested with original jurisdiction over the action.

(d) Notwithstanding any provision of law to the contrary, declaratory relief from the circuit court may be obtained for any action.

(e) Any party aggrieved by the decision of the circuit court may appeal in accordance with part I of chapter 641 and the appeal shall be given priority.

§ -18 Annual report. The commission shall submit a complete and detailed report of its activities, expenditures, and results to the governor and the legislature at least twenty days prior to the convening of each regular session of the legislature."

SECTION 3. Chapter 36, Hawaii Revised Statutes, is amended as follows:

1. By amending section 36-27 to read:

"§36-27 Transfers from special funds for central service expenses. Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

(1) Special out-of-school time instructional program fund under section 302A-1310;

(2) School cafeteria special funds of the department of education;

(3) Special funds of the University of Hawaii;

(4) State educational facilities improvement special fund;

(5) Convention center capital and operations special fund under section 206X-10.5;

(6) Special funds established by section 206E-6;

(7) Housing loan program revenue bond special fund;

(8) Housing project bond special fund;

(9) Aloha Tower fund created by section 206J-17;

(10) Domestic violence prevention special fund under section 321-1.3;

(11) Spouse and child abuse special account under section 346-7.5;

(12) Spouse and child abuse special account under section 601-3.6;

(13) Funds of the employees' retirement system created by section 88-109;

(14) Unemployment compensation fund established under section 383-121;

(15) Hawaii hurricane relief fund established under chapter 431P;

(16) Hawaii health systems corporation special funds;

(17) Boiler and elevator safety revolving fund established under section 397-5.5;

(18) Tourism special fund established under section 201B-11;

(19) Department of commerce and consumer affairs' special funds;

(20) Compliance resolution fund established under section 26-9;

(21) Universal service fund established under chapter 269;

(22) Integrated tax information management systems special fund under section 231-3.2;

(23) Insurance regulation fund under section 431:2-215;

(24) Hawaii tobacco settlement special fund under section 328L-2;

(25) Emergency budget and reserve fund under section 328L-3;

(26) Probation services special fund under section 706-649;

(27) High technology special fund under section 206M-15.5;

(28) Public schools special fees and charges fund under section 302A-1130(f);

(29) Cigarette tax stamp enforcement special fund established by section 28-14;

(30) Cigarette tax stamp administrative special fund established by section 245-41.5; [and]

(31) Tobacco enforcement special fund established by section 28-15;

(32) Hawaii film facility special fund established by section 201-15; and

(33) Hawaii film development special fund established by section -11;

shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."

2. By amending section 36-30(a) to read:

"(a) Each special fund, except the:

(1) Transportation use special fund established by section 261D-1;

(2) Special out-of-school time instructional program fund under section 302A-1310;

(3) School cafeteria special funds of the department of education;

(4) Special funds of the University of Hawaii;

(5) State educational facilities improvement special fund;

(6) Special funds established by section 206E-6;

(7) Aloha Tower fund created by section 206J-17;

(8) Domestic violence prevention special fund under section 321-1.3;

(9) Spouse and child abuse special account under section 346-7.5;

(10) Spouse and child abuse special account under section 601-3.6;

(11) Funds of the employees' retirement system created by section 88-109;

(12) Unemployment compensation fund established under section 383-121;

(13) Hawaii hurricane relief fund established under chapter 431P;

(14) Convention center capital and operations special fund established under section 206X-10.5;

(15) Hawaii health systems corporation special funds;

(16) Tourism special fund established under section 201B-11;

(17) Compliance resolution fund established under section 26-9;

(18) Universal service fund established under chapter 269;

(19) Integrated tax information management systems special fund under section 231-3.2;

(20) Insurance regulation fund under section 431:2-215;

(21) Hawaii tobacco settlement special fund under section 328L-2;

(22) Emergency and budget reserve fund under section 328L-3;

(23) Probation services special fund under section 706-649;

(24) High technology special fund under section 206M-15.5;

(25) Public schools special fees and charges fund under section 302A-1130(f);

(26) Cigarette tax stamp enforcement special fund established by section 28-14;

(27) Cigarette tax stamp administrative special fund established by section 245-41.5; [and]

(28) Tobacco enforcement special fund established by section 28-15;

(29) Hawaii film facility special fund established by section 201-15; and

(30) Hawaii film development special fund established by section -11;

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."

SECTION 4. Chapter 201, Hawaii Revised Statutes, is amended as follows:

1. By repealing sections 201-14 and 201-15.

["§201-14 Consolidated film permit processing. (a) The department shall consult with state and county agencies in order to identify sites that can be used for making visually recorded productions under terms and conditions as may be determined by the state or county agency having jurisdiction over the sites.

(b) The department may accept an application from any person who proposes to make a motion picture, television show, television commercial, or other visually recorded production at one or more sites on state or county lands, whether or not set aside under section 171-11.

(c) The applicant shall identify the sites to be covered by the permit and provide other information as may be required by the department.

(d) The department may approve and issue a permit to film at any of the sites identified by the appropriate state or county agency under subsection (a). If any site requested for use by the applicant is not identified under subsection (a), the department shall consult with the appropriate state or county agency having jurisdiction over the site to obtain a permit. If the matter of a permit cannot be resolved in this manner, the department shall refer the application to the appropriate state or county agency to obtain a permit.

(e) The department is authorized to make changes to, and extensions of, any approved permits so long as the changes and extensions do not conflict with the policies, terms, and conditions set forth by the agency having jurisdiction over the site in question.

(f) The department may establish memoranda of agreement or adopt rules to implement the intent and purposes of this section.

(g) Nothing in this section shall be construed as waiving the authority of any county or the department of transportation of the State to require a person to obtain a permit from the department or county where the production takes place on or from a public highway.

(h) A vessel engaged in temporary use for film production purposes in accordance with a film permit issued by the department shall not be considered to be a "commercial vessel" within the meaning of section 200-9, 200-10, or 200-39; provided that:

(1) The period of temporary use does not exceed fourteen hours per day, five days per week, excluding weekends, and for a period not to exceed thirty calendar days; and

(2) The department may make allowances to include weekends for film production purposes due to inclement weather conditions during the weekday period.

[§201-15] Hawaii film facility special fund. There is established in the state treasury a fund to be known as the Hawaii film facility special fund, into which shall be deposited all moneys and fees from tenants or other users of the department's film facility, and appropriations from the legislature. All moneys in the fund are hereby appropriated for the purposes of and shall be expended by the department for the operation, maintenance, and management of its film facility."]

2. By repealing part IX.

SECTION 5. All rights, powers, functions, and duties of the department of business, economic development, and tourism as they relate to the implementation of chapter 201, part IX, Hawaii Revised Statutes, and the Hawaii television and film development board, are transferred to the Hawaii film commission and the Hawaii film development board, as appropriate.

All members of the Hawaii television and film development board who were appointed by the governor and whose terms of membership have not expired as of the effective date of this Act shall continue to serve in their respective positions until the expiration of their terms of office, subject to the requirements of section 26-34, Hawaii Revised Statutes.

All officers and employees of the Hawaii television and film development board whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.

No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and such officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee possesses the minimum qualifications for the position to which transferred or appointed.

If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.

If an office or position held by an officer or employee having tenure becomes vacant, the office or position thereafter shall be deemed civil service exempt and not subject to chapter 76, Hawaii Revised Statutes.

SECTION 6. All appropriations, current operating budgets, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of business, economic development, and tourism relating to the implementation of chapter 201, part IX, Hawaii Revised Statutes, and the Hawaii television and film development board that are transferred to the Hawaii film commission and the Hawaii film development board by this Act, shall be transferred with the functions to which they relate.

SECTION 7. On July 1, 2002, the director of finance shall:

    1. Transfer to the credit of the Hawaii film development special fund established in section -11 in the new chapter added to the Hawaii Revised Statutes by section 2 of this Act all unexpended or unencumbered balances remaining in the Hawaii television and film development special fund under former section 201-113, Hawaii Revised Statutes, which is repealed by this Act; and
    2. Transfer to the credit of the Hawaii film facility special fund established in section -12 in the new chapter added to the Hawaii Revised Statutes by section 2 of this Act all unexpended or unencumbered balances remaining in the Hawaii film facility special fund under former section 201-15, Hawaii Revised Statutes, which is repealed by this Act.

SECTION 8. 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 2002-2003, to be deposited into the Hawaii film development special fund established by this Act, to facilitate the growth and development of a film industry in Hawaii as provided by this Act.

The sum appropriated shall be expended by the Hawaii film commission 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 shall take effect on July 1, 2002.

INTRODUCED BY:

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