THE SENATE

S.C.R. NO.

196

TWENTY-SECOND LEGISLATURE, 2003

S.D. 1

STATE OF HAWAII

 
   


SENATE CONCURRENT

RESOLUTION

 

requesting the department of business, economic development, and tourism to update its report on hawaii's film industry, "A Road Map: The Film Industry's Potential And How to Get There".

 

WHEREAS, governments around the globe increasingly recognize the tangible and intangible benefits of attracting film production to their countries; and

WHEREAS, many have taken steps to attract film production through financial incentives–-incentives that have contributed to the propensity of the U.S. film industry to produce U.S. films abroad in recent years; and

WHEREAS, the Canadian government offers a number of programs in support of the country's film industry, including direct financial and tax incentives, labor credits, and aggressive marketing campaigns promoting their support of the industry; and

WHEREAS, the total value of film and television production in Canada was over $3,500,000,000 in 1999, a twenty per cent increase over the previous year and triple the amount for 1992-1993; and

WHEREAS, a considerable portion of the growth of the Canadian film industry focused on the television and miniseries film production market, which has been the major growth market in the film industry over the past decade; and

WHEREAS, according to the U.S. Department of Commerce's Media Migration Report, published in January 2001, Canada has developed the most extensive incentive program with a wide variety of wage and tax credits, financing packages, and funds for equity investment; and

WHEREAS, the report described the Canadian film industry experience as follows:

"With a relatively non-developed film industry, a country such as Canada attracts initial production through a series of tax incentives, building the basic infrastructure for film development. As the industry relocates in small amounts at first, below-the-line cast and crew (production, art construction, set dressing, props, camera, sound, stage and studio, electrical, grip, wardrobe, makeup, special effects, laboratory and film, food transportation, locations, editorial, etc.) become trained, making them part of the infrastructure used to attract future productions. As more films begin to relocate, more infrastructure is developed (film studios, sound stages, recording studios, set developments, etc.). It then becomes easier for a project to relocate. At this point, the country can then offer tax incentives for using local labor, providing even more cost savings to relocations. The end result, as is the case in Canada, is a group of production 'clusters' that can attract a large number of both locally developed productions and runaways (film productions that relocate to foreign countries)"; and

WHEREAS, since 2001, similar competitive economic initiatives have been adopted by states, including Oklahoma which offers a cash rebate of fifteen per cent of documented expenditures in the state directly related to film and television production, and New Mexico which offers a fully refundable income tax credit equal to fifteen per cent of film production costs; and

WHEREAS, California's "Film California First" program reimburses up to $300,000 to qualified productions that film public properties in California; and

WHEREAS, the Hawaii's natural resources and skilled workforce has attracted numerous film and television programs to the State; and

WHEREAS, since 1994, there has been a steady decline in state funding of various film and television production initiatives of almost fifty per cent or more in program areas, including marketing; and

WHEREAS, despite the decrease in state funding, there has been a noteworthy increase in the number of film and television productions in Hawaii directly resulting from tax incentives, particularly those provided under Act 221, Session Laws of Hawaii 2001; and

WHEREAS, the State now has experienced first-hand the relationship between incentives, such as tax credits, and an increase in film and television production in Hawaii; and

WHEREAS, the State now has an opportunity to follow up on the momentum generated by current film and television production incentives and establish a truly sustainable film and television production industry in the State; and

WHEREAS, in 2000, the Film Offices of the Hawaiian Islands wrote and compiled "A Road Map: The Film Industry's Potential And How to Get There", which provided a detailed overview of Hawaii's film and television industry and recommendations to support and grow the industry; and

WHEREAS, Hawaii's film and television industry continues to face the same challenges and obstacles identified in that report; and

WHEREAS, many of the incentives proposed in the report to attract additional film and television production in the State have yet to be implemented; and

WHEREAS, it is imperative at this time for the State to review and assess current film and television production tax incentives provided by the State of Hawaii and other jurisdictions as well as any regulatory barriers imposed by the State that hinder the growth of a film industry in Hawaii in order to structure a package of attractive, cohesive, and responsible incentives to be adopted by the State of Hawaii; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-Second Legislature of the State of Hawaii, Regular Session of 2003, the House of Representatives concurring, that the Department of Business, Economic Development, and Tourism (DBEDT) and its Film Offices are requested to update its 2000 report, "A Road Map: The Film Industry's Potential And How to Get There"; and

BE IT FURTHER RESOLVED that the updated report include evaluations and recommendations on incentives, including tax incentives, and on supporting digital filmmaking initiatives, including the recently created University of Hawaii Cinematic and Digital Arts degree program; and

BE IT FURTHER RESOLVED that the updated report shall also include an identification of impediments to developing and sustaining a viable and robust film industry in the State as well as any recommended solutions to remove the identified impediments and further support the industry considering the limited budget of the Film Offices; and

BE IT FURTHER RESOLVED that in updating the report consultation shall be garnered from film and television industry professionals and organizations, public and private financing agencies, producers, creative talent, including writers and directors, related technology support service providers, and educational and training institutions; and

BE IT FURTHER RESOLVED that DBEDT submit the updated report, including recommendations and proposed legislation, to the Legislature not later than twenty days prior to the convening of the 2004 Regular Session; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Business, Economic Development, and Tourism, Director of Taxation, Chair of the Hawaii Tourism Authority Board, President of the University of Hawaii, and each head of the respective county Film Offices.

Report Title:

Film and Television Industry; Report Update