SB 2578: DBEDT; Hawaii Film Commission; Motion Picture, Digital Media, and Film Production Income Tax Credit; Film Industry Development Special Fund; Establishment; Hawaii Film and Creative Industries Development Special Fund; Workforce Development; Film; Media; Reports; Appropriation
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2026-03-24
Current Status:
Failed
(2026-04-22: Received notice of Senate conferees (Sen. Com. No. 723).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
What does this bill do?
The bill creates a Hawaii Film Commission inside the Department of Business, Economic Development, and Tourism, transfers the duties of the current Hawaii Film Office to that commission, and sets up a Film Industry Development Special Fund. The commission would run the state film tax credit (with a 0.2% processing fee), manage grants and workforce training, support studios and production facilities, may change a $17 million per-production credit cap, and must report to the Legislature each year.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Establishes the Hawaii Film Commission within the Department of Business, Economic Development, and Tourism and transfers the rights, powers, functions, and duties of the Hawaii Film Office to the Commission. Requires appointments and hiring of staff by 12/31/2027. Establishes the Film Industry Development Special Fund. Excludes media and film from the definition of "creative industries" and renames the Hawaii Film and Creative Industries Development Special Fund as the Hawaii Creative Industries Development Special Fund. Amends the sources of moneys to be deposited into the Hawaii Creative Industries Development Special Fund. Allows the Creative Industries Development Special Fund to be used for the support and development of facilities and other initiatives to grow the State's creative industries. Requires annual reports to the Legislature. Appropriates funds. Effective 7/1/3000. (HD1)
Establishes the Hawaii Film Commission within the Department of Business, Economic Development, and Tourism for administrative purposes only and transfers the rights, powers, functions, and duties of the Hawaii Film Office to the Commission. Establishes the Film Industry Development Special Fund. Excludes media and film from the definition of creative industries and renames the Hawaii Film and Creative Industries Development Special Fund as the Hawaii Creative Industries Development Special Fund. Amends the sources of moneys to be deposited into the Hawaii Creative Industries Development Special Fund, including requiring all revenues, fees, and charges from the processing of the Motion Picture, Digital Media, and Film Production Income Tax Credit to be deposited into the Film Industry Development Special Fund, rather than the Hawaii Creative Industries Development Special Fund. Allows the Creative Industries Development Special Fund to be used for the support and development of facilities and other initiatives to grow the State's creative industries. Requires the Governor to appoint Commission members, the Director of Business, Economic Development to appoint the Executive Director of the Commission, and the Executive Director to hire staff by 12/31/2027. Requires annual reports to the Legislature. Appropriates funds. Effective 7/1/2050. (SD1)
Establishes the Hawaii Film Commission within the Department of Business, Economic Development, and Tourism for administrative purposes only and transfers the rights, powers, functions, and duties of the Hawaii Film Office to the Commission. Establishes the Film Industry Development Special Fund. Excludes media and film from the definition of creative industries and renames the Hawaii Film and Creative Industries Development Special Fund as the Hawaii Creative Industries Development Special Fund. Amends the sources of moneys to be deposited into the Hawaii Creative Industries Development Special Fund, including requiring all revenues, fees, and charges from the processing of the Motion Picture, Digital Media, and Film Production Income Tax Credit to be deposited into the Film Industry Development Special Fund, rather than the Hawaii Creative Industries Development Special Fund. Allows the Creative Industries Development Special Fund to be used for the support and development of facilities and other initiatives to grow the State's creative industries. Requires the Governor to appoint Commission members, the Director of Business, Economic Development to appoint the Executive Director of the Commission, and the Executive Director to hire staff by 12/31/2027. Requires annual reports to the Legislature. Appropriates funds.
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THE SENATE |
S.B. NO. |
2578 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 1 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO THE FILM INDUSTRY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Hawaii’s film, television, and digital media industries are operating in an increasingly competitive global environment, in which jurisdictions compete not only on tax incentives, but on infrastructure, workforce readiness, technological capacity, and speed of execution. Competing states and international jurisdictions are modernizing their film offices into integrated film commissions or media authorities with centralized authority to administer incentives, grants, studio facilities, and public‑private partnerships. The legislature further finds that Hawaii currently does not have a state film commission in statute. Rather, the film industry branch within the creative industries division of the department of business, economic development, and tourism is currently doing business as the "Hawaii film office" and the film industry development manager of the branch is serving as the "Hawaii state film commissioner" for purposes of membership in third-party organizations, including the Association of Film Commissioners International.
The legislature also finds that advances in artificial intelligence, virtual production, digital post-production, and content creation technologies are fundamentally reshaping how content is produced, distributed, and monetized. To remain competitive, Hawaii must simultaneously retain its ability to attract major domestic and international productions; invest in next-generation infrastructure, facilities, and equipment; support workforce development and training for future content creators, including K-12 students and noninstitutional content creators; and maintain accountability, transparency, and fiscal discipline in administering public incentives.
Accordingly, the purpose of this Act is to restructure and modernize the State's film and creative industries governance by:
(1) Establishing a Hawaii film commission and transferring the rights, powers, functions, and duties of the Hawaii film office to the commission;
(2) Establishing the film industry development special fund and requiring all revenues, fees, and charges from processing the film tax credit to be deposited into this fund;
(3) Excluding media and film from the definition of "creative industries" and renaming the Hawaii film and creative industries development special fund as the Hawaii creative industries development special fund; and
(4) Amending the sources of moneys to be deposited into the Hawaii creative industries development special fund and authorizing the fund to be used for the support and development of facilities and other initiatives to grow the State's creative industries.
SECTION 2. Chapter 201, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"Part . Hawaii film commission
§201-A Definitions. As used in this part:
"Commission" means the Hawaii film commission.
"Department" means the department of business, economic development, and tourism.
"Director" means the director of business, economic development, and tourism.
"Film" includes motion pictures, television, interactive, over-the-top television productions, virtual reality, augmented reality and other forms of emerging media, multi-player videogame publishing, and other digitally-developed content for theatrical or digital distribution via streaming, mobile, and broadcast media.
"Film fund" means the film industry development special fund.
§201-B Hawaii film commission; established. (a) There is established a Hawaii film commission within the department for administrative purposes only.
(b) The commission shall have exclusive responsibility for film and television production activities in the State, including incentive administration, studio facilities, and film‑specific workforce initiatives.
(c) The commission shall consist of twelve members as follows:
(1) Two ex officio, voting members, consisting of:
(A) The director or the director's designee, who shall serve as chairperson of the commission; and
(B) The chairperson of the board of land and natural resources, or the chairperson's designee; and
(2) Ten voting members, to be appointed and removed by the governor and serve on the commission in accordance with section 26-34, consisting of:
(A) One member from the Hawaii island film office;
(B) One member from the Honolulu film office;
(C) One member from the Kauai film commission;
(D) One member from the Maui film office;
(E) One member with expertise in indigenous and cultural storytelling;
(F) One member with extensive global film production experience;
(G) One member with expertise in studio development and infrastructure;
(H) One member who is a Hawaii-based producer with significant production credits; and
(I) Two members representing the labor workforce in the film industries;
provided that no appointed member shall serve consecutive four-year terms.
(d) The chairperson shall select a vice-chairperson from among the members. The chairperson may select other leadership positions from among the members as the chairperson deems necessary, including but not limited to treasurer and secretary.
§201-C Executive director; staff. (a) The director shall appoint an executive director to oversee daily operations of the commission, who shall be exempt from chapter 76. Notwithstanding section 76‑16(b)(17), this exemption from shall not expire.
(b) The executive director may hire professional, technical, and administrative staff as necessary to carry out the purposes of this part, subject to legislative appropriation, and who shall all be exempt from chapter 76. Notwithstanding section 76-16(b)(17), these exemptions shall not expire.
(c) The executive director and the commission's full‑time staff shall be entitled to participate in all state employee benefit plans.
§201-D State film industry development liaison; establishment. (a) There is established within the commission a state film industry development liaison to:
(1) Plan, develop, and execute a statewide film industry development strategy to include all counties in the State for the purposes of establishing a collaborative film industry development program; and
(2) Support the commission in statewide industry coordination, workforce strategy development, and development of emerging film technology initiatives.
(b) The state film industry development liaison shall be appointed by the executive director and shall be exempt from chapter 76. Notwithstanding section 76-16(b)(17), this exemption shall not expire.
§201-E Hawaii film commission; powers; duties. The commission shall:
(1) Administer the motion picture, digital media, and film production income tax credit pursuant to section 235‑17, including application intake, review, registration, certification, compliance monitoring, and reporting;
(2) Review and determine whether to waive or modify the maximum total motion picture, digital media, and film production income tax credit per qualified production pursuant to criteria and procedures adopted by the commission by rule or formal action;
(3) Administer grant programs funded by the film fund, including:
(A) Development grants;
(B) Workforce and training grants; and
(C) Innovation, post-production, and creative technology grants;
(4) Enter into public-private partnership agreements, including leases, licenses, and management agreements pursuant to chapter 103D, as applicable, for:
(A) Film studios owned by the State;
(B) Sound stages;
(C) Post-production facilities; and
(D) Virtual production and creative technology infrastructure;
(5) Coordinate statewide film and media permitting, marketing, and industry engagement in collaboration with state and county agencies; and
(6) Support workforce development and training for future content creators, including through:
(A) K-12 education pathways;
(B) Postsecondary and credential-based training programs;
(C) Programs and resources for independent and noninstitutional content creators; and
(D) Programs and resources for upskilling in artificial intelligence, virtual production, and digital workflows.
§201-F Film industry development special fund. (a) There is established in the state treasury the film industry 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 film fund;
(3) Grants provided by governmental agencies or any other source;
(4) All revenues, fees, and charges from the processing of the motion picture, digital media, and film production income tax credit pursuant to section 235-17;
(5) All revenues, fees, and income received by the department from its management of public facilities that support film production and workforce and business development in the film industry, excluding the Hawaii film studio; and
(6) All interest earned on or accrued to moneys deposited in the film fund.
(b) The film fund shall be used by the department for:
(1) Film production incentives and development, including programs providing financial assistance and seed capital to film productions that contribute to the local economy and enhance the global visibility of Hawaii;
(2) Workforce development, including initiatives that expand the skills and capabilities of the State's resident workforce in film production, digital media, and related technical fields;
(3) Industry promotion and marketing, including efforts to attract film production, investment, and business opportunities to Hawaii; and
(4) Infrastructure and facility support, including repair, maintenance, and related costs of state-managed public facilities that directly support film industry workforce and business development.
§201-G Annual report. The commission shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature and governor no later than twenty days prior to the convening of each regular session. Each report shall include:
(1) All incentives awarded by commission, including the motion picture, digital media, and film production income tax credits pursuant to section 235-17;
(2) All waivers of and modifications to the maximum total motion picture, digital media, and film production income tax credit per qualified production granted by the commission;
(3) All grants awarded by the commission;
(4) All public-private partnership agreements executed by the commission;
(5) Outcomes of workforce development and training supported by the commission; and
(6) Progress towards global competitiveness of and technological advancement in the State's film industry.
§201-H Rules. The commission shall adopt rules pursuant to chapter 91 to effectuate the purposes of this part."
SECTION 3. Chapter 201, Hawaii Revised Statutes, is amended by amending the title of part IX to read as follows:
"PART
IX. HAWAII [FILM AND]
CREATIVE INDUSTRIES DEVELOPMENT"
SECTION 4. Section 201-111, Hawaii Revised Statutes, is amended as follows:
1. By adding a new definition to be appropriately inserted and to read:
""Film" has the same meaning as defined in section 201‑A."
2. By amending the definition of "creative industries" to read:
""Creative
industries" means those sectors that comprise Hawaii's
creative economy, including [media,] arts, culture, music, design,
fashion, publishing, animation, interactive, and emerging [media.] sectors. "Creative industries" does not
include film."
3. By amending the definition of "fund" to read:
""Fund"
means the Hawaii [film and] creative industries development special
fund."
4. By repealing the definition of "media".
[""Media"
means film, motion pictures, television, interactive, over-the-top television
productions, virtual reality, augmented reality and other forms of emerging
media, multi-player videogame publishing, and other digitally-developed content
for theatrical or digital distribution via streaming, mobile, and broadcast
media."]
SECTION 5. Section 201-113, Hawaii Revised Statutes, is amended to read as follows:
"§201-113 Hawaii [film and] creative industries development
special fund.
(a) There is established in the
state treasury the Hawaii [film and] creative industries 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;
(3) Grants provided by governmental
agencies or any other source; and
[(4) Effective January 2, 2023, all
revenues, fees, and charges from the processing of the motion picture, digital
media, and film production income tax credit pursuant to section 235-17; and
(5)] (4) Effective July 1, 2022, all existing
and future revenues, fees, and income received by the department from its
management of public facilities that support [media and entertainment
workforce and business development, with the exception of the Hawaii film
studio.] creative industries.
(b) The fund shall be used by the department to provide for:
(1) A program to provide seed capital for [film,
media, electronic sports, and] creative industries intellectual property
development projects for export, as determined by the department;
(2) Programs that expand the skills of the State's
resident workforce in the [film, media, and] creative industries;
(3) Marketing programs that attract
business opportunities in the [film, media, and] creative industries in
the State; [and]
(4) Repair, maintenance, and related costs of the
department's management of public facilities that support [media and
entertainment] the creative industries workforce and business
development[.]; and
(5) The support and development of facilities and other initiatives to grow the State's creative industries."
SECTION 6. Section 235-17, Hawaii Revised Statutes, is amended by amending subsections (k) and (l) to read as follows:
"(k) Each taxpayer claiming a tax credit under
this section shall submit
to the department of business, economic development, and tourism a fee for the
motion picture, digital media, and film production income tax credit in an
amount equal to 0.2 per cent of the tax credit claimed by the qualified
production no later than the deadline stated in subsection (c). The department of business, economic
development, and tourism may prescribe the form and method by which this fee is
remitted, including through electronic means.
The fees collected under this subsection shall be deposited into the
Hawaii film [and creative industries] industry development
special fund under section [201‑113.] 201-F.
(l)
Total tax credits claimed per qualified production shall not exceed
$17,000,000[.]; provided
that the Hawaii film commission may waive or modify this amount pursuant to
section 201-E(2)."
SECTION 7. Section 201-115, Hawaii Revised Statutes, is repealed.
["[§201-115]
State media industry development liaison; establishment. (a) There is established within the creative
industries division of the department a state media industry development
liaison to plan, develop, and execute a statewide media industry development
strategy to include all counties in the State for the purposes of establishing
a collaborative media industry development program.
(b) The state media industry development liaison
shall be appointed by the director of business, economic development, and
tourism without regard to chapter 76."]
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 2026-2027 for the establishment and operation of the Hawaii film commission.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 9. All rights, powers, functions, and duties of the Hawaii film office are transferred to the Hawaii film commission.
All officers and employees 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.
SECTION 10. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the Hawaii film office relating to the functions transferred to the Hawaii film commission shall be transferred with the functions to which they relate.
SECTION 11. For the purposes of this Act, "Hawaii film office" means the film industry branch within the creative industries division of the department of business, economic development, and tourism.
SECTION 12. No later than December 31, 2027:
(1) The governor shall appoint all members of the Hawaii film commission who are not ex officio, voting members pursuant to section 201-B, Hawaii Revised Statutes;
(2) The director of business, economic development, and tourism shall appoint the executive director of the Hawaii film commission pursuant to section 201-C(a), Hawaii Revised Statutes; and
(3) The executive director of the Hawaii film commission shall hire staff pursuant to section 201-C(b), Hawaii Revised Statutes.
SECTION 13. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 14. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 15. This Act shall take effect on July 1, 3000.
Report Title:
DBEDT; Hawaii Film Commission; Motion Picture, Digital Media, and Film Production Income Tax Credit; Film Industry Development Special Fund; Establishment; Hawaii Film and Creative Industries Development Special Fund; Workforce Development; Film; Media; Reports; Appropriation
Description:
Establishes the Hawaii Film Commission within the Department of Business, Economic Development, and Tourism and transfers the rights, powers, functions, and duties of the Hawaii Film Office to the Commission. Requires appointments and hiring of staff by 12/31/2027. Establishes the Film Industry Development Special Fund. Excludes media and film from the definition of "creative industries" and renames the Hawaii Film and Creative Industries Development Special Fund as the Hawaii Creative Industries Development Special Fund. Amends the sources of moneys to be deposited into the Hawaii Creative Industries Development Special Fund. Allows the Creative Industries Development Special Fund to be used for the support and development of facilities and other initiatives to grow the State's creative industries. Requires annual reports to the Legislature. Appropriates funds. 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.
|
THE SENATE |
S.B. NO. |
2578 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 1 |
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STATE OF HAWAII |
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||
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|
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A BILL FOR AN ACT
RELATING TO THE FILM INDUSTRY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Hawaii’s film, television, and digital media industries are operating in an increasingly competitive global environment, in which jurisdictions compete not only on tax incentives, but on infrastructure, workforce readiness, technological capacity, and speed of execution. Competing states and international jurisdictions are modernizing their film offices into integrated film commissions or media authorities with centralized authority to administer incentives, grants, studio facilities, and public‑private partnerships. The legislature also finds that Hawaii currently does not have a state film commission in statute, but rather, the film industry branch within the creative industries division of the department of business, economic development, and tourism is currently doing business as the "Hawaii film office" and the film industry development manager of the branch is serving as the "Hawaii state film commissioner" for purposes of membership in third-party organizations, including the Association of Film Commissioners International.
The legislature further finds that advances in artificial intelligence, virtual production, digital post-production, and content creation technologies are fundamentally reshaping how content is produced, distributed, and monetized. To remain competitive, Hawaii must simultaneously retain its ability to attract major domestic and international productions; invest in next-generation infrastructure, facilities, and equipment; support workforce development and training for future content creators, including K-12 students and noninstitutional content creators; and maintain accountability, transparency, and fiscal discipline in administering public incentives.
Accordingly, the purpose of this Act is to restructure and modernize the State's film and creative industries governance by:
(1) Establishing a Hawaii film commission and transferring the rights, powers, functions, and duties of the Hawaii film office to the commission;
(2) Establishing the film industry development special fund;
(3) Excluding media and film from the definition of creative industries and renaming the Hawaii film and creative industries development special fund as the Hawaii creative industries development special fund;
(4) Amending the sources of moneys to be deposited into the Hawaii creative industries development special fund, including requiring all revenues, fees, and charges from the processing of the motion picture, digital media, and film production income tax credit to be deposited into the film industry development special fund, rather than the Hawaii creative industries development special fund; and
(5) Allowing the Hawaii creative industries development special fund to be used for the support and development of facilities and other initiatives to grow the State's creative industries.
SECTION 2. Chapter 201, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"Part . Hawaii film commission
§201-A Definitions. As used in this part:
"Commission" means the Hawaii film commission.
"Department" means the department of business, economic development, and tourism.
"Film" includes motion pictures, television, interactive, over-the-top television productions, virtual reality, augmented reality and other forms of emerging media, multi-player videogame publishing, and other digitally-developed content for theatrical or digital distribution via streaming, mobile, and broadcast media.
"Film fund" means the film industry development special fund.
§201-B Hawaii film commission; established. (a) There is established a Hawaii film commission within the department for administrative purposes only.
(b) The commission shall have exclusive responsibility for film and television production activities in the State, including incentive administration, studio facilities, and film‑specific workforce initiatives.
(c) The commission shall consist of twelve members, ten of whom shall be appointed and removed by the governor pursuant to section 26-34, except as otherwise provided in this section, and two of whom shall be ex officio, voting members as follows:
(1) The director of business, economic development, and tourism or the director's designee, who shall:
(A) Serve as chairperson of the commission; and
(B) Serve as an ex officio, voting member;
(2) The chairperson of the board of land and natural resources or the chairperson's designee, who shall serve as an ex officio, voting member;
(3) One member from each of the counties' film offices;
(4) One member who shall have expertise in indigenous and cultural storytelling;
(5) One member who shall have extensive global film production experience;
(6) One member who shall have expertise in studio development and infrastructure;
(7) One member who shall be a Hawaii-based producer with significant production credits; and
(8) Two members representing the labor workforce in the film industries;
provided that any individual appointed as a member pursuant to paragraphs (3) through (8) shall not serve consecutive four-year terms as a member of the commission.
(d) The chairperson shall select a vice-chairperson from among the members. The chairperson may select other leadership positions from among the members as the chairperson deems necessary, including but not limited to treasurer and secretary.
§201-C Executive director; staff. (a) The director of business, economic development, and tourism shall appoint an executive director without regard to chapter 76, to oversee daily operations of the commission. Notwithstanding section 76‑16(b)(17), this exemption from chapter 76 shall not expire.
(b) The executive director may hire professional, technical, and administrative staff, without regard to chapter 76, as necessary to carry out the purposes of this part, subject to legislative appropriation. Notwithstanding section 76-16(b)(17), this exemption from chapter 76 shall not expire.
(c) The executive director and the commission's full‑time staff shall be entitled to participate in all state employee benefit plans.
§201-D State film industry development liaison; establishment. (a) There is established within the commission a state film industry development liaison to:
(1) Plan, develop, and execute a statewide film industry development strategy to include all counties in the State for the purposes of establishing a collaborative film industry development program; and
(2) Support the commission in statewide industry coordination, workforce strategy development, and development of emerging film technology initiatives.
(b) The state film industry development liaison shall be appointed by the executive director without regard to chapter 76. Notwithstanding section 76-16(b)(17), this exemption from chapter 76 shall not expire.
§201-E Hawaii film commission; powers; duties. The commission shall:
(1) Administer the motion picture, digital media, and film production income tax credit pursuant to section 235‑17, including application intake, review, registration, certification, compliance monitoring, and reporting;
(2) Review and determine whether to waive or modify the maximum total motion picture, digital media, and film production income tax credit per qualified production pursuant to criteria and procedures adopted by the commission by rule or formal action;
(3) Administer grant programs funded by the film industries development special fund, including:
(A) Development grants;
(B) Workforce and training grants; and
(C) Innovation, post-production, and creative technology grants;
(4) Enter into public-private partnership agreements, including leases, licenses, and management agreements pursuant to chapter 103D, as applicable, for:
(A) Film studios owned by the State;
(B) Sound stages;
(C) Post-production facilities; and
(D) Virtual production and creative technology infrastructure;
(5) Coordinate statewide film and media permitting, marketing, and industry engagement in collaboration with state and county agencies; and
(6) Support workforce development and training for future content creators, including through:
(A) K-12 education pathways;
(B) Postsecondary and credential-based training programs;
(C) Programs and resources for independent and noninstitutional content creators; and
(D) Programs and resources for upskilling in artificial intelligence, virtual production, and digital workflows.
§201-F Film industry development special fund. (a) There is established in the state treasury the film industry 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 film fund;
(3) Grants provided by governmental agencies or any other source;
(4) All revenues, fees, and charges from the processing of the motion picture, digital media, and film production income tax credit pursuant to section 235-17;
(5) All revenues, fees, and income received by the department from its management of public facilities that support film production and workforce and business development in the film industry, excluding the Hawaii film studio; and
(6) All interests earned or accrued on moneys in the film fund.
(b) The film fund shall be used by the department for:
(1) Film production incentives and development, including programs providing financial assistance and seed capital to film productions that contribute to the local economy and enhance the global visibility of Hawaii;
(2) Workforce development, including initiatives that expand the skills and capabilities of the State's resident workforce in film production, digital media, and related technical fields;
(3) Industry promotion and marketing, including efforts to attract film production, investment, and business opportunities to Hawaii; and
(4) Infrastructure and facility support, including repair, maintenance, and related costs of state-managed public facilities that directly support film industry workforce and business development.
§201-G Annual report. The commission shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature and governor no later than twenty days prior to the convening of each regular session. Each report shall include:
(1) All incentives awarded by commission, including the motion picture, digital media, and film production income tax credits pursuant to section 235-17;
(2) All waivers of and modifications to the maximum total motion picture, digital media, and film production income tax credit per qualified production granted by the commission;
(3) All grants awarded by the commission;
(4) All public-private partnership agreements executed by the commission;
(5) Outcomes of workforce development and training supported by the commission; and
(6) Progress towards global competitiveness of and technological advancement in the State's film industry.
§201-H Rules. The commission shall adopt rules pursuant to chapter 91 to effectuate the purposes of this part."
SECTION 3. Chapter 201, Hawaii Revised Statutes, is amended by amending the title of part IX to read as follows:
"PART IX. HAWAII [FILM AND] CREATIVE INDUSTRIES DEVELOPMENT"
SECTION 4. Section 201-111, Hawaii Revised Statutes, is amended as follows:
1. By adding a new definition to be appropriately inserted and to read:
""Film" has the same meaning as defined in section 201‑A."
2. By amending the definition of "creative industries" to read:
""Creative
industries" means those sectors that comprise Hawaii's
creative economy, including [media,] arts, culture, music, design,
fashion, publishing, animation, interactive, and emerging [media.] sectors;
provided that "creative industries" does not include film."
3. By amending the definition of "fund" to read:
""Fund"
means the Hawaii [film and] creative industries development special
fund."
4. By repealing the definition of "media".
[""Media"
means film, motion pictures, television, interactive, over-the-top television
productions, virtual reality, augmented reality and other forms of emerging
media, multi-player videogame publishing, and other digitally-developed content
for theatrical or digital distribution via streaming, mobile, and broadcast
media."]
SECTION 5. Section 201-113, Hawaii Revised Statutes, is amended to read as follows:
"§201-113 Hawaii [film and] creative industries development
special fund.
(a) There is established in the
state treasury the Hawaii [film and] creative industries 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;
(3) Grants provided by governmental
agencies or any other source; and
[(4) Effective January 2, 2023, all
revenues, fees, and charges from the processing of the motion picture, digital
media, and film production income tax credit pursuant to section 235-17; and
(5)] (4) Effective July 1, 2022, all existing
and future revenues, fees, and income received by the department from its
management of public facilities that support [media and entertainment
workforce and business development, with the exception of the Hawaii film
studio.] creative industries.
(b) The fund shall be used by the department to provide for:
(1) A program to provide seed capital for [film,
media, electronic sports, and] creative industries intellectual property
development projects for export, as determined by the department;
(2) Programs that expand the skills of the State's
resident workforce in the [film, media, and] creative industries;
(3) Marketing programs that attract
business opportunities in the [film, media, and] creative industries in
the State; [and]
(4) Repair, maintenance, and related costs of the
department's management of public facilities that support [media and
entertainment] the creative industries workforce and business
development[.]; and
(5) The support and development of facilities and other initiatives to grow the State's creative industries."
SECTION 6. Section 235-17, Hawaii Revised Statutes, is amended by amending subsections (k) and (l) to read as follows:
"(k) Each taxpayer claiming a tax credit under
this section shall submit
to the department of business, economic development, and tourism a fee for the
motion picture, digital media, and film production income tax credit in an
amount equal to 0.2 per cent of the tax credit claimed by the qualified
production no later than the deadline stated in subsection (c). The department of business, economic
development, and tourism may prescribe the form and method by which this fee is
remitted, including through electronic means.
The fees collected under this subsection shall be deposited into the
Hawaii film [and creative industries] industry development
special fund under section [201‑113.] 201-F.
(l)
Total tax credits claimed per qualified production shall not exceed
$17,000,000[.]; provided
that the Hawaii film commission may waive or modify this amount pursuant to
section 201-E(2)."
SECTION 7. Section 201-115, Hawaii Revised Statutes, is repealed.
["[§201-115]
State media industry development liaison; establishment. (a) There is established within the creative
industries division of the department a state media industry development
liaison to plan, develop, and execute a statewide media industry development
strategy to include all counties in the State for the purposes of establishing
a collaborative media industry development program.
(b) The state media industry development liaison
shall be appointed by the director of business, economic development, and
tourism without regard to chapter 76."]
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 2026-2027 for the establishment and operation of the Hawaii film commission.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 9. All rights, powers, functions, and duties of the Hawaii film office are transferred to the Hawaii film commission.
All officers and employees 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.
SECTION 10. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the Hawaii film office relating to the functions transferred to the Hawaii film commission shall be transferred with the functions to which they relate.
SECTION 11. For the purposes of this Act, "Hawaii film office" means the film industry branch within the creative industries division of the department of business, economic development, and tourism.
SECTION 12. No later than December 31, 2027:
(1) The governor shall appoint all members of the Hawaii film commission who are not ex officio, voting members pursuant to section 201-B, Hawaii Revised Statutes;
(2) The director of business, economic development, and tourism shall appoint the executive director of the Hawaii film commission pursuant to section 201-C(a), Hawaii Revised Statutes; and
(3) The executive director of the Hawaii film commission shall hire staff pursuant to section 201-C(b), Hawaii Revised Statutes.
SECTION 13. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 14. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 15. This Act shall take effect on July 1, 2050.
Report Title:
DBEDT; Hawaii Film Commission; Motion Picture, Digital Media, and Film Production Income Tax Credit; Film Industry Development Special Fund; Establishment; Hawaii Film and Creative Industries Development Special Fund; Workforce Development; Film; Media; Reports; Appropriation
Description:
Establishes the Hawaii Film Commission within the Department of Business, Economic Development, and Tourism for administrative purposes only and transfers the rights, powers, functions, and duties of the Hawaii Film Office to the Commission. Establishes the Film Industry Development Special Fund. Excludes media and film from the definition of creative industries and renames the Hawaii Film and Creative Industries Development Special Fund as the Hawaii Creative Industries Development Special Fund. Amends the sources of moneys to be deposited into the Hawaii Creative Industries Development Special Fund, including requiring all revenues, fees, and charges from the processing of the Motion Picture, Digital Media, and Film Production Income Tax Credit to be deposited into the Film Industry Development Special Fund, rather than the Hawaii Creative Industries Development Special Fund. Allows the Creative Industries Development Special Fund to be used for the support and development of facilities and other initiatives to grow the State's creative industries. Requires the Governor to appoint Commission members, the Director of Business, Economic Development to appoint the Executive Director of the Commission, and the Executive Director to hire staff by 12/31/2027. Requires annual reports to the Legislature. Appropriates funds. Effective 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
2578 |
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THIRTY-THIRD LEGISLATURE, 2026 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to THE FILM INDUSTRY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Hawaii’s film, television, and digital media industries are operating in an increasingly competitive global environment, in which jurisdictions compete not only on tax incentives, but on infrastructure, workforce readiness, technological capacity, and speed of execution. Competing states and international jurisdictions are modernizing their film offices into integrated film commissions or media authorities with centralized authority to administer incentives, grants, studio facilities, and public‑private partnerships. The legislature also finds that Hawaii currently does not have a state film commission in statute, but rather, the film industry branch within the creative industries division of the department of business, economic development, and tourism is currently doing business as the "Hawaii film office" and the film industry development manager of the branch is serving as the "Hawaii state film commissioner" for purposes of membership in third-party organizations, including the Association of Film Commissioners International.
The legislature further finds that advances in artificial intelligence, virtual production, digital post-production, and content creation technologies are fundamentally reshaping how content is produced, distributed, and monetized. To remain competitive, Hawaii must simultaneously retain its ability to attract major domestic and international productions; invest in next-generation infrastructure, facilities, and equipment; support workforce development and training for future content creators, including K-12 students and noninstitutional content creators; and maintain accountability, transparency, and fiscal discipline in administering public incentives.
Accordingly, the purpose of this Act is to restructure and modernize the State’s film and creative industries governance by:
(1) Establishing a Hawaii film commission and transferring the rights, powers, functions, and duties of the Hawaii film office to the commission;
(2) Establishing the film industry development special fund;
(3) Excluding media and film from the definition of creative industries and renaming the Hawaii film and creative industries development special fund as the Hawaii creative industries development special fund;
(4) Amending the sources of moneys to be deposited into the Hawaii creative industries development special fund, including requiring all revenues, fees, and charges from the processing of the motion picture, digital media, and film production income tax credit to be deposited into the film industry development special fund, rather than the Hawaii creative industries development special fund; and
(5) Allowing the Hawaii creative industries development special fund to be used for the support and development of facilities and other initiatives to grow the State's creative industries.
SECTION 2. Chapter 201, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"Part . Hawaii film commission
§201-A Definitions. As used in this part:
"Commission" means the Hawaii film commission.
"Department" means the department of business, economic development, and tourism.
"Film" includes motion pictures, television, interactive, over-the-top television productions, virtual reality, augmented reality and other forms of emerging media, multi-player videogame publishing, and other digitally-developed content for theatrical or digital distribution via streaming, mobile, and broadcast media."
"Film fund" means the film industry development special fund.
§201-B Hawaii film commission; established. (a) There is established a Hawaii film commission within the department for administrative purposes only.
(b) The commission shall have exclusive responsibility for film and television production activities in the State, including incentive administration, studio facilities, and film‑specific workforce initiatives.
(c) The commission shall consist of twelve members, ten of whom shall be appointed and removed by the governor pursuant to section 26-34, except as otherwise provided in this section, and two of whom shall be ex officio, voting members as follows:
(1) The director of business, economic development, and tourism or the director's designee, who shall:
(A) Serve as chairperson of the board; and
(B) Serve as an ex officio, voting member;
(2) The chairperson of the board of land and natural resources or the chairperson's designee, who shall serve as an ex officio, voting member;
(3) One member from each of the counties' film offices;
(4) One member who shall have expertise in indigenous and cultural storytelling;
(5) One member who shall have extensive global film production experience;
(6) One member who shall have expertise in studio development and infrastructure;
(7) One member who shall be a Hawaii-based producer with significant production credits; and
(8) Two members representing the labor workforce in the film industries;
provided that any individual appointed as a member pursuant to paragraphs (3) through (8) shall not serve consecutive four-year terms as a member of the board.
(d) The chairperson shall select a vice-chairperson from among the members. The chairperson may select other leadership positions from among the members as the chairperson deems necessary, including but not limited to treasurer and secretary.
§201-C Executive director; staff. (a) The director of business, economic development, and tourism shall appoint an executive director without regard to chapter 76, to oversee daily operations of the commission. Notwithstanding section 76‑16(b)(17), this exemption from chapter 76 shall not expire.
(b) The executive director may hire professional, technical, and administrative staff, without regard to chapter 76, as necessary to carry out the purposes of this part, subject to legislative appropriation. Notwithstanding section 76-16(b)(17), this exemption from chapter 76 shall not expire.
(c) The executive director and the commission's full‑time staff shall be entitled to participate in all state employee benefit plans.
§201-D State film industry development liaison; establishment. (a) There is established within the commission a state film industry development liaison to:
(1) Plan, develop, and execute a statewide film industry development strategy to include all counties in the State for the purposes of establishing a collaborative film industry development program; and
(2) Support the commission in statewide industry coordination, workforce strategy development, and development of emerging film technology initiatives.
(b) The state film industry development liaison shall be appointed by the executive director without regard to chapter 76. Notwithstanding section 76-16(b)(17), this exemption from chapter 76 shall not expire.
§201-E Hawaii film commission; powers; duties. The commission shall:
(1) Administer the motion picture, digital media, and film production tax credits pursuant to section 235-17, including application intake, review, registration, certification, compliance monitoring, and reporting;
(2) Review and determine whether to waive or modify the maximum total motion picture, digital media, and film production tax credits per qualified production pursuant to criteria and procedures adopted by the commission by rule or formal action;
(3) Administer grant programs funded by the film industries development special fund, including:
(A) Development grants;
(B) Workforce and training grants; and
(C) Innovation, post-production, and creative technology grants;
(4) Enter into public-private partnership agreements, including leases, licenses, and management agreements pursuant to chapter 103D, as applicable, for:
(A) Film studios owned by the State;
(B) Sound stages;
(C) Post-production facilities; and
(D) Virtual production and creative technology infrastructure;
(5) Coordinate statewide film and media permitting, marketing, and industry engagement in collaboration with state and county agencies; and
(6) Support workforce development and training for future content creators, including through:
(A) K-12 education pathways;
(B) Postsecondary and credential-based training programs;
(C) Programs and resources for independent and noninstitutional content creators; and
(D) Programs and resources for upskilling in artificial intelligence, virtual production, and digital workflows.
§201-F Film industry development special fund. (a) There is established in the state treasury the film industry 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 film fund;
(3) Grants provided by governmental agencies or any other source;
(4) All revenues, fees, and charges from the processing of the motion picture, digital media, and film production income tax credit pursuant to section 235-17;
(5) All revenues, fees, and income received by the department from its management of public facilities that support film production and workforce and business development in the film industry, excluding the Hawaii film studio; and
(6) All interests earned or accrued on moneys in the film fund.
(b) The film fund shall be used by the department for:
(1) Film production incentives and development, including programs providing financial assistance and seed capital to film productions that contribute to the local economy and enhance the global visibility of Hawaii;
(2) Workforce development, including initiatives that expand the skills and capabilities of Hawaii's resident workforce in film production, digital media, and related technical fields;
(3) Industry promotion and marketing, including efforts to attract film production, investment, and business opportunities to Hawaii; and
(4) Infrastructure and facility support, including repair, maintenance, and related costs of state-managed public facilities that directly support film industry workforce and business development.
§201-G Annual report. The commission shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature and governor no later than twenty days prior to the convening of each regular session. Each report shall include:
(1) All incentives awarded by commission, including the motion picture, digital media, and film production income tax credits pursuant to section 235-17;
(2) All waivers of and modifications to the maximum total motion picture, digital media, and film production tax credit per qualified production granted by the commission;
(3) All grants awarded by the commission;
(4) All public-private partnership agreements executed by the commission;
(5) Outcomes of workforce development and training supported by the commission; and
(6) Progress towards global competitiveness of and technological advancement in the State's film industry.
§201-H Rules. The commission shall adopt rules pursuant to chapter 91 to effectuate the purposes of this part."
SECTION 3. Chapter 201, Hawaii Revised Statutes, is amended by amending the title of part IX to read as follows:
"PART IX. HAWAII [FILM AND] CREATIVE
INDUSTRIES DEVELOPMENT"
SECTION 4. Section 201-111, Hawaii Revised Statutes, is amended as follows:
1. By adding a new definition to be appropriately inserted and to read:
""Film" has the same meaning as defined in section 201‑111."
2. By amending the definition of "creative industries" to read:
""Creative
industries" means those sectors that comprise Hawaiiʹs
creative economy, including [media,] arts, culture, music, design,
fashion, publishing, animation, interactive, and emerging [media.] sectors;
provided that "creative industries" does not include film."
3. By amending the definition of "fund" to read:
""Fund"
means the Hawaii [film and] creative industries development special
fund."
4. By repealing the definition of "media".
[""Media"
means film, motion pictures, television, interactive, over-the-top television
productions, virtual reality, augmented reality and other forms of emerging
media, multi-player videogame publishing, and other digitally-developed content
for theatrical or digital distribution via streaming, mobile, and broadcast
media."]
SECTION 5. Section 201-113, Hawaii Revised Statutes, is amended to read as follows:
"§201-113 Hawaii [film and] creative industries development special fund. (a)
There is established in the state treasury the Hawaii [film and]
creative industries 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;
(3) Grants provided by governmental
agencies or any other source; and
[(4) Effective January 2, 2023, all
revenues, fees, and charges from the processing of the motion picture, digital
media, and film production income tax credit pursuant to section 235-17; and
(5)] (4) Effective
July 1, 2022, all existing and future revenues, fees, and income received by
the department from its management of public facilities that support [media
and entertainment workforce and business development, with the exception of the
Hawaii film studio.] creative industries.
(b) The fund shall be used by the department to provide for:
(1) A program to provide seed capital for [film,
media, electronic sports, and] creative industries intellectual property
development projects for export, as determined by the department;
(2) Programs that expand the skills of the Stateʹs
resident workforce in the [film, media, and] creative industries;
(3) Marketing programs that attract
business opportunities in the [film, media, and] creative industries in
the State; [and]
(4) Repair, maintenance, and related costs of the
department's management of public facilities that support [media and
entertainment] the creative industries workforce and business
development[.]; and
(5) The support and development of facilities and other initiatives to grow the State's creative industries."
SECTION 6. Section 201-115, Hawaii Revised Statutes, is repealed.
["[§201-115] State media industry development liaison;
establishment. (a) There is established within the creative
industries division of the department a state media industry development
liaison to plan, develop, and execute a statewide media industry development
strategy to include all counties in the State for the purposes of establishing
a collaborative media industry development program.
(b)
The state media industry development liaison shall be appointed by the
director of business, economic development, and tourism without regard to
chapter 76."]
SECTION 7. Section 235-17, Hawaii Revised Statutes, is amended by amending subsections (k) and (l) to read as follows:
"(k) Each taxpayer claiming a tax credit under
this section shall submit
to the department of business, economic development, and tourism a fee for the
motion picture, digital media, and film production income tax credit in an
amount equal to 0.2 per cent of the tax credit claimed by the qualified
production no later than the deadline stated in subsection (c). The department of business, economic
development, and tourism may prescribe the form and method by which this fee is
remitted, including through electronic means.
The fees collected under this subsection shall be deposited into the
Hawaii [film
and]
creative industries development special fund under section 201‑113.
(l)
Total tax credits claimed per qualified production shall not exceed
$17,000,000[.]; provided
that the Hawaii film commission may waive or modify this amount pursuant to
section 201-E(a)(2)."
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 2026-2027 for the establishment and operation of the Hawaii film commission.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 9. All rights, powers, functions, and duties of the Hawaii film office are transferred to the State of Hawaii film commission.
All officers and employees 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.
SECTION 10. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the Hawaii film office relating to the functions transferred to the Hawaii film commission shall be transferred with the functions to which they relate.
SECTION 11. For the purposes of this Act, "Hawaii film office" means the film industry branch within the creative industries division of the department of business, economic development, and tourism.
SECTION 12. No later than December 31, 2027:
(1) The governor shall appoint all members of the Hawaii film commission who are not ex officio members pursuant to section 201-B, Hawaii Revised Statutes;
(2) The director of business, economic development, and tourism shall appoint the executive director of the Hawaii film commission pursuant to section 201-C(a), Hawaii Revised Statutes; and
(3) The executive director of the Hawaii film commission shall hire staff pursuant to section 201-C(b), Hawaii Revised Statutes.
SECTION 13. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 14. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 15. This Act shall take effect on July 1, 2026; provided that the amendments made to section 235-17, Hawaii Revised Statutes, by section 7 of this Act shall not be repealed when that section is reenacted on January 1, 2033, pursuant to section 4 of Act 217, Session Laws of Hawaii 2022.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
DBEDT; Hawaii Film Commission; Motion Picture, Digital Media, and Film Production Income Tax Credit; Film Industry Development Special Fund; Establishment; Hawaii Film and Creative Industries Development Special Fund; Workforce Development; Film; Media; Reports; Appropriation
Description:
Establishes the Hawaii Film Commission within the Department of Business, Economic Development, and Tourism for administrative purposes only and transfers the rights, powers, functions, and duties of the Hawaii Film Office to the Commission. Establishes the Film Industry Development Special Fund. Excludes media and film from the definition of creative industries and renames the Hawaii Film and Creative Industries Development Special Fund as the Hawaii Creative Industries Development Special Fund. Amends the sources of moneys to be deposited into the Hawaii Creative Industries Development Special Fund, including requiring all revenues, fees, and charges from the processing of the Motion Picture, Digital Media, and Film Production Income Tax Credit to be deposited into the Film Industry Development Special Fund, rather than the Hawaii Creative Industries Development Special Fund. Allows the Creative Industries Development Special Fund to be used for the support and development of facilities and other initiatives to grow the State's creative industries. Requires the Governor to appoint Commission members, the Director of Business, Economic Development to appoint the Executive Director of the Commission, and the Executive Director to hire staff by 12/31/2027. Requires annual reports to the Legislature. Appropriates funds.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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| Apr 22, 2026 | Received notice of Senate conferees (Sen. Com. No. 723). |
| Apr 22, 2026 | Senate Conferees Appointed: DeCoite Chair; Wakai Co-Chair; Fevella. |
| Apr 21, 2026 | Received notice of appointment of House conferees (Hse. Com. No. 800). |
| Apr 21, 2026 | House Conferees Appointed: Ilagan, Hussey Co-Chairs; Tam, Gedeon. |
| Apr 10, 2026 | Received notice of disagreement (Sen. Com. No. 564). |
| Apr 10, 2026 | Senate disagrees with House amendments. |
| Apr 10, 2026 | Received from House (Hse. Com. No. 514). |
| Apr 9, 2026 | Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran excused (1). Transmitted to Senate. |
| Apr 9, 2026 | Reported from FIN (Stand. Com. Rep. No. 2005-26), recommending passage on Third Reading. |
| Apr 7, 2026 | The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none. |
| Apr 2, 2026 | Bill scheduled for decision making on Tuesday, 04-07-26 10:10AM in conference room 308 VIA VIDEOCONFERENCE. |
| Apr 2, 2026 | The committee(s) on FIN recommend(s) that the measure be deferred until 04-07-26. |
| Mar 31, 2026 | Bill scheduled to be heard by FIN on Thursday, 04-02-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE. |
| Mar 25, 2026 | 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) Matsumoto, Perruso excused (2). |
| Mar 25, 2026 | Reported from ECD (Stand. Com. Rep. No. 1425-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN. |
| Mar 20, 2026 | The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Ilagan, Hussey, Tam, Templo, Yamashita, Gedeon; Ayes with reservations: none; Noes: none; and Excused: none. |
| Mar 16, 2026 | Bill scheduled to be heard by ECD on Friday, 03-20-26 9:30AM in House conference room 423 VIA VIDEOCONFERENCE. |
| Mar 12, 2026 | This measure has been deleted from the meeting scheduled on Friday 03-13-26 10:00AM in conference room 423 VIA VIDEOCONFERENCE. |
| Mar 10, 2026 | Bill scheduled to be heard by ECD on Friday, 03-13-26 10:00AM in House conference room 423 VIA VIDEOCONFERENCE. |
| Mar 10, 2026 | Referred to ECD, FIN, referral sheet 16 |
| Mar 10, 2026 | Pass First Reading |
| Mar 6, 2026 | Received from Senate (Sen. Com. No. 67) in amended form (SD 1). |
| Mar 6, 2026 | Report Adopted; Passed Third Reading. Ayes, 24; Aye(s) with reservations: none. Noes, 0 (none). Excused, 1 (Senator(s) Ihara). Transmitted to House. |
| Mar 5, 2026 | One Day Notice 03-06-26. |
| Mar 5, 2026 | Reported from WAM (Stand. Com. Rep. No. 2862) with recommendation of passage on Third Reading. |
| Mar 3, 2026 | The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella. |
| Feb 27, 2026 | The committee(s) on WAM will hold a public decision making on 03-03-26 10:17AM; Conference Room 211 & Videoconference. |
| Feb 11, 2026 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Feb 11, 2026 | Reported from EDT (Stand. Com. Rep. No. 2191) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Feb 3, 2026 | The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDT were as follows: 5 Aye(s): Senator(s) DeCoite, Wakai, Fukunaga, Kim, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Jan 30, 2026 | The committee(s) on EDT has scheduled a public hearing on 02-03-26 1:00PM; Conference Room 229 & Videoconference. |
| Jan 28, 2026 | Referred to EDT, WAM. |
| Jan 23, 2026 | Passed First Reading. |
| Jan 23, 2026 | Introduced. |
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Date
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Description
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Location
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Votes
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| Apr 7, 2026 | The committee on FIN recommend that the measure be PASSED, UNAMENDED | House Standing Committee on Finance |
Passed |
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| Mar 20, 2026 | The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Economic Development & Technology |
Passed |
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| Mar 6, 2026 | Third Reading | Senate Floor |
Passed |
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| Mar 3, 2026 | The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED | Senate Standing Committee on Ways and Means |
Passed |
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| Feb 3, 2026 | The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Economic Development and Tourism |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Carrillo Digital Inc | *** Support | Apr 2, 2026 |
| Check The Gate | *** Support | Mar 20, 2026 |
| Department of Business, Economic Development & Tourism (Creative Industries Division) | *** Support | Mar 20, 2026 |
| Department of Business, Economic Development, and Tourism | *** Support | Apr 2, 2026 |
| Department of Business, Economic Development, and Tourism (DBEDT) – Creative Industries Division | *** Support | Feb 3, 2026 |
| Department of Business, Economic Development, and Tourism - Creative Industries Division | *** Support | Apr 2, 2026 |
| Directors Guild of America | *** Support | Apr 2, 2026 |
| Hawaii Media Inc. | *** Support | Apr 2, 2026 |
| Hawaii Teamsters 996 | *** Support | Apr 2, 2026 |
| Hawaii Teamsters Local 996 | *** Support | Apr 2, 2026 |
| Hawaiʻi Film Alliance | *** Support | Apr 2, 2026 |
| Hawai’i Film Alliance | *** Support | Apr 2, 2026 |
| Hyperspective Studios, Inc. | *** Support | Apr 2, 2026 |
| IATSE 665 | *** Support | Apr 2, 2026 |
| IATSE Local 665 | *** Support | Apr 2, 2026 |
| Local 996 | *** Support | Apr 2, 2026 |
| SAG-AFTRA Hawaii Local | *** Support | Apr 2, 2026 |
| Sight & Sound Productions | *** Support | Apr 2, 2026 |
| Teamsters Local 996 | *** Support | Apr 2, 2026 |
| Tyler Young Films, LLC. | *** Support | Apr 2, 2026 |
| West 4th Street Films | ** Support |
STAND. COM. REP. NO. 2862
Honolulu, Hawaii
RE: S.B. No. 2578
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 2578, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE FILM INDUSTRY,"
begs leave to report as follows:
The purpose and intent of this measure is to restructure and modernize the State's film and creative industries governance.
More specifically, this measure:
(1) Establishes the Hawaii Film Commission within the Department of Business, Economic Development, and Tourism for administrative purposes only and transfers the rights, powers, functions, and duties of the Hawaii Film Office to the Commission;
(2) Establishes the film industry development special fund;
(3) Excludes media and film from the definition of creative industries and renames the Hawaii film and creative industries development special fund as the Hawaii creative industries development special fund;
(4) Amends the sources of moneys to be deposited into the Hawaii creative industries development special fund, including requiring all revenues, fees, and charges from the processing of the Motion Picture, Digital Media, and Film Production Income Tax Credit to be deposited into the film industry development special fund, rather than the Hawaii creative industries development special fund;
(5) Allows the creative industries development special fund to be used for the support and development of facilities and other initiatives to grow the State's creative industries;
(6) Requires by no later than December 31, 2027:
(A) The Governor to appoint Hawaii Film Commission members;
(B) The Director of Business, Economic Development, and Tourism to appoint the Executive Director of the Commission; and
(C) The Executive Director to hire staff;
(7) Requires annual reports to the Legislature; and
(8) Appropriates funds to the Department of Business, Economic Development, and Tourism.
Your Committee received written comments in support of this measure from the Department of Business, Economic Development, and Tourism; Creative Industries Division of the Department of Business, Economic Development, and Tourism; Hawaii Film Alliance; Hawaii Teamsters Local 996; and eighteen individuals.
Your Committee received written comments in opposition to this measure from one individual.
Your Committee received written comments on this measure from SAG-AFTRA Hawaii Local and three individuals.
Your Committee finds that Hawaii's film, television, and digital media industries operate in an increasingly competitive global environment in which jurisdictions compete through incentives, infrastructure, workforce capability, and production efficiency. Your Committee also finds that other states and countries have established centralized film commissions to coordinate incentives, facilities, and partnerships. Hawaii, however, does not have a statutorily established state film commission. Rather, the film industry branch within the Creative Industries Division of the Department of Business, Economic Development, and Tourism currently fulfills this function. Your Committee believes that the restructuring effected by this measure is necessary to help Hawaii maintain its competitiveness by strengthening its production infrastructure, investing in workforce development, and upholding transparency and fiscal accountability in the administration of public incentives.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2578, S.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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STAND. COM. REP. NO. 2191
Honolulu, Hawaii
RE: S.B. No. 2578
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Sir:
Your Committee on Economic Development and Tourism, to which was referred S.B. No. 2578 entitled:
"A BILL FOR AN ACT RELATING TO THE FILM INDUSTRY,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Establish the Hawaii Film Commission within the Department of Business, Economic Development, and Tourism for administrative purposes only and transfer the rights, powers, functions, and duties of the Hawaii Film Office to the Commission;
(2) Establish the Film Industry Development Special Fund;
(3) Exclude media and film from the definition of creative industries and rename the Hawaii Film and Creative Industries Development Special Fund as the Hawaii Creative Industries Development Special Fund;
(4) Amend the sources of moneys to be deposited into the Hawaii Creative Industries Development Special Fund, including requiring all revenues, fees, and charges from the processing of the Motion Picture, Digital Media, and Film Production Income Tax Credit to be deposited into the Film Industry Development Special Fund, rather than the Hawaii Creative Industries Development Special Fund;
(5) Allow the Creative Industries Development Special Fund to be used for the support and development of facilities and other initiatives to grow the State's creative industries;
(6) Require the Governor to appoint Commission members, the Director of Business, Economic Development to appoint the Executive Director of the Commission, and the Executive Director to hire staff by 12/31/2027;
(7) Require annual reports to the Legislature; and
(8) Appropriate funds.
Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Creative Industries Division of the Department of Business, Economic Development, and Tourism; West 4th Street Films; Hawaii Teamsters Local 996; and two individuals.
Your Committee received comments on this measure from the Honolulu Film Office; SAG-AFTRA Hawaii Local; Hawaiʻi Film Alliance; Tax Foundation of Hawaii; and HI! VTuber Expo.
Your Committee finds that the local film industry is currently governed by the Film Industry Branch of the Creative Industries Division of the Department of Business, Economic Development, and Tourism, operating as the Hawaii Film Office. Your Committee further finds, however, that leading production jurisdictions globally have shifted away from traditional film offices, instead establishing film commissions or media authorities. These commissions integrate incentive administration, studio and infrastructure development, workforce pipelines, public-private partnerships, and international marketing and co-production strategies. To remain competitive in this context, this measure restructures and modernizes the State's film and creative industries governance through the establishment of the Hawaii Film Commission.
Your Committee has amended this measure by:
(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
Your Committee notes the request from the Hawaiʻi Film Alliance that the representation of labor unions on the Hawaii Film Commission should be increased to ensure workforce perspectives are sufficiently represented. Specifically, SAG‑AFTRA Hawaii Local; IATSE Local 665, AFL-CIO; Hawaii Teamsters and Allied Workers Union Local 996; and musician representatives may offer valuable primary perspectives to the Commission. Accordingly, your Committee respectfully requests that subsequent Committees to which this measure is referred consider this issue.
As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2578, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2578, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,
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________________________________ LYNN DECOITE, Chair |
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Date
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Testimony PDF
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|---|---|
| Apr 2, 2026 | SB2578_HD1_TESTIMONY_FIN_04-02-26_.PDF |
| Mar 20, 2026 | SB2578_SD1_TESTIMONY_ECD_03-20-26_.PDF |
| Mar 3, 2026 | SB2578_SD1_TESTIMONY_WAM_03-03-26_.PDF |
| Feb 3, 2026 | SB2578_TESTIMONY_EDT_02-03-26_.PDF |
Discussed in Hearing
1MIN
House Standing Committee on Economic Development & Technology
18MIN
Senate Standing Committee on Economic Development and Tourism
Bill Author
Bill Co-Author(s):
