Florida Senate - 2015                                    SB 1046
       
       
        
       By Senator Detert
       
       
       
       
       
       28-00708C-15                                          20151046__
    1                        A bill to be entitled                      
    2         An act relating to the entertainment industry;
    3         amending s. 288.1201, F.S.; revising the sources of
    4         moneys to be credited to the State Economic
    5         Enhancement and Development Trust Fund to include
    6         repayments to the entertainment industry quick action
    7         fund created by the act; creating the Entertainment
    8         Industry Quick Action Account within the State
    9         Economic Enhancement and Development Trust Fund;
   10         authorizing the Department of Economic Opportunity to
   11         adopt specified rules; amending s. 288.125, F.S.;
   12         revising the applicability of the term “entertainment
   13         industry”; transferring, renumbering, and amending s.
   14         288.1251, F.S.; renaming the Office of Film and
   15         Entertainment within the Department of Economic
   16         Opportunity as the Division of Film and Entertainment
   17         within Enterprise Florida, Inc.; requiring the
   18         division to serve as a liaison between the
   19         entertainment industry and other agencies,
   20         commissions, and organizations; requiring the Governor
   21         to appoint the film and entertainment commissioner;
   22         revising the requirements of the division’s strategic
   23         plan; transferring, renumbering, and amending s.
   24         288.1252, F.S.; revising the powers and duties of the
   25         Florida Film and Entertainment Advisory Council;
   26         revising council membership; conforming provisions to
   27         changes made by the act; transferring, renumbering,
   28         and amending s. 288.1253, F.S.; conforming provisions
   29         to changes made by the act; amending s. 288.1254,
   30         F.S.; redefining terms; requiring the Department of
   31         Economic Opportunity, rather than the Office of Film
   32         and Entertainment, to be responsible for applications
   33         for the entertainment industry program; revising
   34         provisions relating to the application process, tax
   35         credit eligibility, transfer of tax credits, election
   36         and distribution of tax credits, allocation of tax
   37         credits, forfeiture of tax credits, and annual report;
   38         extending the repeal date; conforming provisions to
   39         changes made by the act; specifying a date on which
   40         the applications on file with the department and not
   41         yet certified are deemed denied; creating s. 288.1256,
   42         F.S.; creating the entertainment industry quick action
   43         fund within the department; defining terms;
   44         authorizing a production company to apply for funds
   45         from the entertainment industry quick action fund in
   46         certain circumstances; requiring the department and
   47         the division to jointly review and evaluate
   48         applications to determine the eligibility of each
   49         project; requiring the department to select projects
   50         that maximize the return to the state; requiring
   51         certain criteria to be considered by the department
   52         and the division; requiring a production company to
   53         have financing for a project before it applies for
   54         quick action funds; requiring the department to
   55         prescribe a form for an application with specified
   56         information; requiring that the department make a
   57         recommendation to the Governor to approve or deny an
   58         award within a specified timeframe after the
   59         completion of the review and evaluation; providing
   60         that an award of funds may not constitute more than a
   61         specified percentage of qualified expenditures in this
   62         state and prohibiting the use of such funds to pay
   63         wages to nonresidents; requiring a production to start
   64         within a specified period after it is approved by the
   65         Governor; requiring that the recommendation include
   66         performance conditions that the project must meet to
   67         obtain funds; requiring the department and the
   68         production company to enter into a specified agreement
   69         after approval by the Governor; requiring that the
   70         agreement be finalized and signed by an authorized
   71         officer of the production company within a specified
   72         period after approval by the Governor; prohibiting an
   73         approved production company from simultaneously
   74         receiving specified benefits for the same production;
   75         requiring that the department validate contractor
   76         performance and report such validation in the annual
   77         report; prohibiting the department from approving
   78         awards in excess of the amount appropriated for a
   79         fiscal year; requiring the department to maintain a
   80         schedule of funds; requiring that all funds received
   81         from the required repayment be deposited into the
   82         Entertainment Industry Quick Action Account within the
   83         State Economic Enhancement and Development Trust Fund;
   84         providing that a production company that submits
   85         fraudulent information is liable for reimbursement of
   86         specified costs; providing a penalty; prohibiting the
   87         department from waiving any provision or providing an
   88         extension of time to meet specified requirements;
   89         providing an expiration date; amending s. 288.1258,
   90         F.S.; conforming provisions to changes made by the
   91         act; prohibiting an approved production company from
   92         simultaneously receiving benefits under specified
   93         provisions for the same production; requiring the
   94         department to develop a standardized application form
   95         in cooperation with the division and other agencies;
   96         requiring the qualified production company to submit
   97         aggregate data on specified topics; authorizing a
   98         qualified production company to renew its certificate
   99         of exemption for a specified period; amending s.
  100         288.92, F.S.; requiring Enterprise Florida, Inc., to
  101         have a division relating to film and entertainment;
  102         amending s. 477.0135, F.S.; conforming a provision to
  103         changes made by the act; reenacting s. 212.08(5)(q),
  104         F.S., relating to sales, rental, use, consumption,
  105         distribution, and storage tax; specified exemptions;
  106         reenacting s. 220.1899(3), F.S., relating to
  107         entertainment industry tax credit; providing an
  108         effective date.
  109          
  110  Be It Enacted by the Legislature of the State of Florida:
  111  
  112         Section 1. Subsection (2) of section 288.1201, Florida
  113  Statutes, is amended, present subsection (3) is redesignated as
  114  subsection (4), and a new subsection (3) is added to that
  115  section, to read:
  116         288.1201 State Economic Enhancement and Development Trust
  117  Fund.—
  118         (2) The trust fund is established for use as a depository
  119  for funds to be used for the purposes specified in subsection
  120  (1). Moneys to be credited to the trust fund shall consist of
  121  documentary stamp tax proceeds as specified in law, local
  122  financial support funds, interest earnings, repayments made
  123  under s. 288.1256, and cash advances from other trust funds.
  124  Funds shall be expended only pursuant to legislative
  125  appropriation or an approved amendment to the department’s
  126  operating budget pursuant to the provisions of chapter 216.
  127         (3) There is created, within the State Economic Enhancement
  128  and Development Trust Fund, the Entertainment Industry Quick
  129  Action Account. The Entertainment Industry Quick Action Account
  130  shall consist of moneys appropriated to the account for purposes
  131  of the program authorized under s. 288.1256 and repayment made
  132  under s. 288.1256. Moneys in the Entertainment Industry Quick
  133  Action Account are subject to s. 216.301(1)(a). Moneys in the
  134  Entertainment Industry Quick Action Account may be used only to
  135  make payments authorized under s. 288.1256. The department may
  136  adopt rules necessary to provide for the use of moneys in the
  137  Entertainment Industry Quick Action Account and for the
  138  administration of the Entertainment Industry Quick Action
  139  Account.
  140         Section 2. Section 288.125, Florida Statutes, is amended to
  141  read:
  142         288.125 Definition of “entertainment industry.”—For the
  143  purposes of ss. 288.1254, 288.1256, 288.1258, 288.913, 288.914,
  144  and 288.915 ss. 288.1251-288.1258, the term “entertainment
  145  industry” means those persons or entities engaged in the
  146  operation of motion picture or television studios or recording
  147  studios; those persons or entities engaged in the preproduction,
  148  production, or postproduction of motion pictures, made-for
  149  television movies, television programming, digital media
  150  projects, commercial advertising, music videos, or sound
  151  recordings; and those persons or entities providing products or
  152  services directly related to the preproduction, production, or
  153  postproduction of motion pictures, made-for-television movies,
  154  television programming, digital media projects, commercial
  155  advertising, music videos, or sound recordings, including, but
  156  not limited to, the broadcast industry.
  157         Section 3. Section 288.1251, Florida Statutes, is
  158  transferred, renumbered as section 288.913, Florida Statutes,
  159  and amended to read:
  160         288.913 288.1251 Promotion and development of entertainment
  161  industry; Division Office of Film and Entertainment; creation;
  162  purpose; powers and duties.—
  163         (1) CREATION.—
  164         (a)The Division of Film and Entertainment is There is
  165  hereby created within Enterprise Florida, Inc., the department
  166  the Office of Film and Entertainment for the purpose of
  167  developing, recruiting, marketing, promoting, and providing
  168  services to the state’s entertainment industry. The division
  169  shall serve as a liaison between the entertainment industry and
  170  other state and local governmental agencies, local film
  171  commissions, and labor organizations.
  172         (2)(b)COMMISSIONER.—The Governor shall appoint the film
  173  and entertainment commissioner, who shall serve at the pleasure
  174  of the Governor and is subject to confirmation by the Senate
  175  department shall conduct a national search for a qualified
  176  person to fill the position of Commissioner of Film and
  177  Entertainment when the position is vacant. The executive
  178  director of the department has the responsibility to hire the
  179  film commissioner. Qualifications for the film commissioner
  180  include, but are not limited to, the following:
  181         (a)1. A working knowledge of and experience with the
  182  equipment, personnel, financial, and day-to-day production
  183  operations of the industries to be served by the division Office
  184  of Film and Entertainment;
  185         (b)2. Marketing and promotion experience related to the
  186  film and entertainment industries to be served;
  187         (c)3. Experience working with a variety of individuals
  188  representing large and small entertainment-related businesses,
  189  industry associations, local community entertainment industry
  190  liaisons, and labor organizations; and
  191         (d)4. Experience working with a variety of state and local
  192  governmental agencies.
  193         (3)(2) POWERS AND DUTIES.—
  194         (a) The Division Office of Film and Entertainment, in
  195  performance of its duties, shall develop and:
  196         1. In consultation with the Florida Film and Entertainment
  197  Advisory Council, update a 5-year the strategic plan every 5
  198  years to guide the activities of the division Office of Film and
  199  Entertainment in the areas of entertainment industry
  200  development, marketing, promotion, liaison services, field
  201  office administration, and information. The plan shall:
  202         a. be annual in construction and ongoing in nature.
  203         1. At a minimum, the plan must address the following:
  204         a.b.Include recommendations relating to The organizational
  205  structure of the division, including any field offices outside
  206  the state office.
  207         b. The coordination of the division with local or regional
  208  offices maintained by counties and regions of the state, local
  209  film commissions, and labor organizations, and the coordination
  210  of such entities with each other to facilitate a working
  211  relationship.
  212         c.Strategies to identify, solicit, and recruit
  213  entertainment production opportunities for the state, including
  214  implementation of programs for rural and urban areas designed to
  215  develop and promote the state’s entertainment industry.
  216         d.c.Include An annual budget projection for the division
  217  office for each year of the plan.
  218         d. Include an operational model for the office to use in
  219  implementing programs for rural and urban areas designed to:
  220         (I) develop and promote the state’s entertainment industry.
  221         (II) Have the office serve as a liaison between the
  222  entertainment industry and other state and local governmental
  223  agencies, local film commissions, and labor organizations.
  224         (III) Gather statistical information related to the state’s
  225  entertainment industry.
  226         e.(IV)Provision of Provide information and service to
  227  businesses, communities, organizations, and individuals engaged
  228  in entertainment industry activities.
  229         (V) Administer field offices outside the state and
  230  coordinate with regional offices maintained by counties and
  231  regions of the state, as described in sub-sub-subparagraph (II),
  232  as necessary.
  233         f.e.Include Performance standards and measurable outcomes
  234  for the programs to be implemented by the division office.
  235         2. The plan shall be annually reviewed and approved by the
  236  board of directors of Enterprise Florida, Inc.
  237         f. Include an assessment of, and make recommendations on,
  238  the feasibility of creating an alternative public-private
  239  partnership for the purpose of contracting with such a
  240  partnership for the administration of the state’s entertainment
  241  industry promotion, development, marketing, and service
  242  programs.
  243         2. Develop, market, and facilitate a working relationship
  244  between state agencies and local governments in cooperation with
  245  local film commission offices for out-of-state and indigenous
  246  entertainment industry production entities.
  247         3. Implement a structured methodology prescribed for
  248  coordinating activities of local offices with each other and the
  249  commissioner’s office.
  250         (b) The division shall also:
  251         1.4. Represent the state’s indigenous entertainment
  252  industry to key decisionmakers within the national and
  253  international entertainment industry, and to state and local
  254  officials.
  255         2.5. Prepare an inventory and analysis of the state’s
  256  entertainment industry, including, but not limited to,
  257  information on crew, related businesses, support services, job
  258  creation, talent, and economic impact and coordinate with local
  259  offices to develop an information tool for common use.
  260         3.6. Identify, solicit, and recruit entertainment
  261  production opportunities for the state.
  262         4.7. Assist rural communities and other small communities
  263  in the state in developing the expertise and capacity necessary
  264  for such communities to develop, market, promote, and provide
  265  services to the state’s entertainment industry.
  266         (c)(b) The division Office of Film and Entertainment, in
  267  the performance of its duties, may:
  268         1. Conduct or contract for specific promotion and marketing
  269  functions, including, but not limited to, production of a
  270  statewide directory, production and maintenance of an Internet
  271  website, establishment and maintenance of a toll-free telephone
  272  number, organization of trade show participation, and
  273  appropriate cooperative marketing opportunities.
  274         2. Conduct its affairs, carry on its operations, establish
  275  offices, and exercise the powers granted by this act in any
  276  state, territory, district, or possession of the United States.
  277         3. Carry out any program of information, special events, or
  278  publicity designed to attract entertainment industry to Florida.
  279         4. Develop relationships and leverage resources with other
  280  public and private organizations or groups in their efforts to
  281  publicize to the entertainment industry in this state, other
  282  states, and other countries the depth of Florida’s entertainment
  283  industry talent, crew, production companies, production
  284  equipment resources, related businesses, and support services,
  285  including the establishment of and expenditure for a program of
  286  cooperative advertising with these public and private
  287  organizations and groups in accordance with the provisions of
  288  chapter 120.
  289         5. Provide and arrange for reasonable and necessary
  290  promotional items and services for such persons as the division
  291  office deems proper in connection with the performance of the
  292  promotional and other duties of the division office.
  293         6. Prepare an annual economic impact analysis on
  294  entertainment industry-related activities in the state.
  295         7. Request or accept any grant, payment, or gift of funds
  296  or property made by this state, the United States, or any
  297  department or agency thereof, or by any individual, firm,
  298  corporation, municipality, county, or organization, for any or
  299  all of the purposes of the Office of Film and Entertainment’s 5
  300  year strategic plan or those permitted activities enumerated in
  301  this paragraph. Such funds shall be deposited in a separate
  302  account the Grants and Donations Trust Fund of the Executive
  303  Office of the Governor for use by the division Office of Film
  304  and Entertainment in carrying out its responsibilities and
  305  duties as delineated in law. The division office may expend such
  306  funds in accordance with the terms and conditions of any such
  307  grant, payment, or gift in the pursuit of its administration or
  308  in support of fulfilling its duties and responsibilities. The
  309  division office shall separately account for the public funds
  310  and the private funds deposited into the account trust fund.
  311         Section 4. Section 288.1252, Florida Statutes, is
  312  transferred, renumbered as section 288.914, Florida Statutes,
  313  and amended to read:
  314         288.914 288.1252 Florida Film and Entertainment Advisory
  315  Council; creation; purpose; membership; powers and duties.—
  316         (1) CREATION.—There is created within the department, for
  317  administrative purposes only, the Florida Film and Entertainment
  318  Advisory Council.
  319         (1)(2)CREATION AND PURPOSE.—The Florida Film and
  320  Entertainment Advisory Council is created purpose of the Council
  321  is to serve as an advisory body to the Division of Film and
  322  Entertainment within Enterprise Florida, Inc., department and to
  323  the Office of Film and Entertainment to provide these offices
  324  with industry insight and expertise related to developing,
  325  marketing, and promoting, and providing service to the state’s
  326  entertainment industry.
  327         (2)(3) MEMBERSHIP.—
  328         (a) The council shall consist of 11 17 members, 5 7 to be
  329  appointed by the Governor, 3 5 to be appointed by the President
  330  of the Senate, and 3 5 to be appointed by the Speaker of the
  331  House of Representatives.
  332         (b) When making appointments to the council, the Governor,
  333  the President of the Senate, and the Speaker of the House of
  334  Representatives shall appoint persons who are residents of the
  335  state and who are highly knowledgeable of, active in, and
  336  recognized leaders in Florida’s motion picture, television,
  337  video, sound recording, or other entertainment industries. These
  338  persons shall include, but not be limited to, representatives of
  339  local film commissions, representatives of entertainment
  340  associations, a representative of the broadcast industry,
  341  representatives of labor organizations in the entertainment
  342  industry, and board chairs, presidents, chief executive
  343  officers, chief operating officers, or persons of comparable
  344  executive position or stature of leading or otherwise important
  345  entertainment industry businesses and offices. Council members
  346  shall be appointed in such a manner as to equitably represent
  347  the broadest spectrum of the entertainment industry and
  348  geographic areas of the state.
  349         (c) Council members shall serve for 4-year terms. A member
  350  of the council serving as of July 1, 2015, may serve the
  351  remainder of his or her term, but upon the conclusion of the
  352  term or upon vacancy, such appointment may not be filled except
  353  to meet the requirements of this section.
  354         (d) Subsequent appointments shall be made by the official
  355  who appointed the council member whose expired term is to be
  356  filled.
  357         (e) A representative of Enterprise Florida, Inc., a
  358  representative of Workforce Florida, Inc., and a representative
  359  of VISIT Florida shall serve as ex officio, nonvoting members of
  360  the council, and shall be in addition to the 11 17 appointed
  361  members of the council.
  362         (f) Absence from three consecutive meetings shall result in
  363  automatic removal from the council.
  364         (g) A vacancy on the council shall be filled for the
  365  remainder of the unexpired term by the official who appointed
  366  the vacating member.
  367         (h) No more than one member of the council may be an
  368  employee of any one company, organization, or association.
  369         (i) Any member shall be eligible for reappointment but may
  370  not serve more than two consecutive terms.
  371         (3)(4) MEETINGS; ORGANIZATION.—
  372         (a) The council shall meet at least no less frequently than
  373  once each quarter of the calendar year, and but may meet more
  374  often as determined necessary set by the council.
  375         (b) The council shall annually elect from its appointed
  376  membership one member to serve as chair of the council and one
  377  member to serve as vice chair. The Division Office of Film and
  378  Entertainment shall provide staff assistance to the council,
  379  which must shall include, but need not be limited to, keeping
  380  records of the proceedings of the council, and serving as
  381  custodian of all books, documents, and papers filed with the
  382  council.
  383         (c) A majority of the members of the council constitutes
  384  shall constitute a quorum.
  385         (d) Members of the council shall serve without
  386  compensation, but are shall be entitled to reimbursement for per
  387  diem and travel expenses in accordance with s. 112.061 while in
  388  performance of their duties.
  389         (4)(5) POWERS AND DUTIES.—The Florida Film and
  390  Entertainment Advisory Council shall have all the power powers
  391  necessary or convenient to carry out and effectuate the purposes
  392  and provisions of this act, including, but not limited to, the
  393  power to:
  394         (a) Adopt bylaws for the governance of its affairs and the
  395  conduct of its business.
  396         (b) Advise the Division of Film and Entertainment and
  397  consult with the Office of Film and Entertainment on the
  398  content, development, and implementation of the division’s 5
  399  year strategic plan to guide the activities of the office.
  400         (c) Review the Commissioner of Film and Entertainment’s
  401  administration of the programs related to the strategic plan,
  402  and Advise the Division of Film and Entertainment commissioner
  403  on the division’s programs and any changes that might be made to
  404  better meet the strategic plan.
  405         (d) Consider and study the needs of the entertainment
  406  industry for the purpose of advising the Division of Film and
  407  Entertainment film commissioner and the department.
  408         (e) Identify and make recommendations on state agency and
  409  local government actions that may have an impact on the
  410  entertainment industry or that may appear to industry
  411  representatives as an official state or local actions action
  412  affecting production in the state, and advise the Division of
  413  Film and Entertainment of such actions.
  414         (f) Consider all matters submitted to it by the Division of
  415  Film and Entertainment film commissioner and the department.
  416         (g) Advise and consult with the film commissioner and the
  417  department, at their request or upon its own initiative,
  418  regarding the promulgation, administration, and enforcement of
  419  all laws and rules relating to the entertainment industry.
  420         (g)(h) Suggest policies and practices for the conduct of
  421  business by the Office of Film and Entertainment or by the
  422  department that will improve interaction with internal
  423  operations affecting the entertainment industry and will enhance
  424  related state the economic development initiatives of the state
  425  for the industry.
  426         (i) Appear on its own behalf before boards, commissions,
  427  departments, or other agencies of municipal, county, or state
  428  government, or the Federal Government.
  429         Section 5. Section 288.1253, Florida Statutes, is
  430  transferred, renumbered as section 288.915, Florida Statutes,
  431  and amended to read:
  432         288.915 288.1253 Travel and entertainment expenses.—
  433         (1) As used in this section, the term “travel expenses”
  434  means the actual, necessary, and reasonable costs of
  435  transportation, meals, lodging, and incidental expenses normally
  436  incurred by an employee of the Division Office of Film and
  437  Entertainment within Enterprise Florida, Inc., as which costs
  438  are defined and prescribed by rules adopted by the department
  439  rule, subject to approval by the Chief Financial Officer.
  440         (2) Notwithstanding the provisions of s. 112.061, the
  441  department shall adopt rules by which the Division of Film and
  442  Entertainment it may make expenditures by reimbursement to: the
  443  Governor, the Lieutenant Governor, security staff of the
  444  Governor or Lieutenant Governor, the Commissioner of Film and
  445  Entertainment, or staff of the Division Office of Film and
  446  Entertainment for travel expenses or entertainment expenses
  447  incurred by such individuals solely and exclusively in
  448  connection with the performance of the statutory duties of the
  449  division Office of Film and Entertainment. The rules are subject
  450  to approval by the Chief Financial Officer before adoption. The
  451  rules shall require the submission of paid receipts, or other
  452  proof of expenditure prescribed by the Chief Financial Officer,
  453  with any claim for reimbursement.
  454         (3) The Division Office of Film and Entertainment shall
  455  include in the annual report for the entertainment industry
  456  financial incentive program required under s. 288.1254(10) a
  457  report of the division’s office’s expenditures for the previous
  458  fiscal year. The report must consist of a summary of all travel,
  459  entertainment, and incidental expenses incurred within the
  460  United States and all travel, entertainment, and incidental
  461  expenses incurred outside the United States, as well as a
  462  summary of all successful projects that developed from such
  463  travel.
  464         (4) The Division Office of Film and Entertainment and its
  465  employees and representatives, when authorized, may accept and
  466  use complimentary travel, accommodations, meeting space, meals,
  467  equipment, transportation, and any other goods or services
  468  necessary for or beneficial to the performance of the division’s
  469  office’s duties and purposes, so long as such acceptance or use
  470  is not in conflict with part III of chapter 112. The department
  471  shall, by rule, develop internal controls to ensure that such
  472  goods or services accepted or used pursuant to this subsection
  473  are limited to those that will assist solely and exclusively in
  474  the furtherance of the division’s office’s goals and are in
  475  compliance with part III of chapter 112.
  476         (5) Any claim submitted under this section is not required
  477  to be sworn to before a notary public or other officer
  478  authorized to administer oaths, but any claim authorized or
  479  required to be made under any provision of this section shall
  480  contain a statement that the expenses were actually incurred as
  481  necessary travel or entertainment expenses in the performance of
  482  official duties of the Division Office of Film and Entertainment
  483  and shall be verified by written declaration that it is true and
  484  correct as to every material matter. Any person who willfully
  485  makes and subscribes to any claim that which he or she does not
  486  believe to be true and correct as to every material matter or
  487  who willfully aids or assists in, procures, or counsels or
  488  advises with respect to, the preparation or presentation of a
  489  claim pursuant to this section which that is fraudulent or false
  490  as to any material matter, whether such falsity or fraud is with
  491  the knowledge or consent of the person authorized or required to
  492  present the claim, commits a misdemeanor of the second degree,
  493  punishable as provided in s. 775.082 or s. 775.083. Whoever
  494  receives a reimbursement by means of a false claim is civilly
  495  liable, in the amount of the overpayment, for the reimbursement
  496  of the public fund from which the claim was paid.
  497         Section 6. Section 288.1254, Florida Statutes, is amended
  498  to read:
  499         288.1254 Entertainment industry financial incentive
  500  program.—
  501         (1) DEFINITIONS.—As used in this section, the term:
  502         (a) “Certified production” means a qualified production
  503  that has tax credits allocated to it by the department based on
  504  the production’s estimated qualified expenditures, up to the
  505  production’s maximum certified amount of tax credits, by the
  506  department. The term does not include a production if its first
  507  day of principal photography or project start date in this state
  508  occurs before the production is certified by the department,
  509  unless the production spans more than 1 fiscal year, was a
  510  certified production on its first day of principal photography
  511  or project start date in this state, and submits an application
  512  for continuing the same production for the subsequent fiscal
  513  year.
  514         (b) “Digital media project” means a production of
  515  interactive entertainment that is produced for distribution in
  516  commercial or educational markets. The term includes a video
  517  game or production intended for Internet or wireless
  518  distribution, an interactive website, digital animation, and
  519  visual effects, including, but not limited to, three-dimensional
  520  movie productions and movie conversions. The term does not
  521  include a production that contains content that is obscene as
  522  defined in s. 847.001.
  523         (c) “Family-friendly production” means a production that
  524  has cross-generational appeal; is considered suitable for
  525  viewing by children age 5 or older; is appropriate in theme,
  526  content, and language for a broad family audience; embodies a
  527  responsible resolution of issues; and does not exhibit or imply
  528  any act of smoking, sex, nudity, or vulgar or profane language
  529  “High-impact digital media project” means a digital media
  530  project that has qualified expenditures greater than $4.5
  531  million.
  532         (d) “High-impact television series” means:
  533         1. A production created to run multiple production seasons
  534  which has and having an estimated order of at least seven
  535  episodes per season and qualified expenditures of at least $1
  536  million $625,000 per episode; or
  537         2. A telenovela that has qualified expenditures of more
  538  than $6 million; a minimum of 45 principal photography days
  539  filmed in this state; a production cast, including background
  540  actors, and a crew of which at least 90 percent are legal
  541  residents of this state; and at least 90 percent of its
  542  production occurring in this state.
  543         (e) “Off-season certified production” means a feature film,
  544  independent film, or television series or pilot that films 75
  545  percent or more of its principal photography days from June 1
  546  through November 30.
  547         (f) “Principal photography” means the filming of major or
  548  significant components of the qualified production which involve
  549  lead actors.
  550         (f)(g) “Production” means a theatrical, or direct-to-video,
  551  or direct-to-Internet motion picture; a made-for-television
  552  motion picture; visual effects or digital animation sequences
  553  produced in conjunction with a motion picture; a commercial; a
  554  music video; an industrial or educational film; an infomercial;
  555  a documentary film; a television pilot program; a presentation
  556  for a television pilot program; a television series, including,
  557  but not limited to, a drama, a reality show, a comedy, a soap
  558  opera, a telenovela, a game show, an awards show, or a
  559  miniseries production; a direct-to-Internet television series;
  560  or a digital media project by the entertainment industry. One
  561  season of a television series is considered one production. The
  562  term does not include a weather or market program; a sporting
  563  event or a sporting event broadcast; a gala; a production that
  564  solicits funds; a home shopping program; a political program; a
  565  political documentary; political advertising; a gambling-related
  566  project or production; a concert production; a local, regional,
  567  or Internet-distributed-only news show or current-events show; a
  568  sports news or sports recap show; a pornographic production; or
  569  any production deemed obscene under chapter 847. A production
  570  may be produced on or by film, tape, or otherwise by means of a
  571  motion picture camera; electronic camera or device; tape device;
  572  computer; any combination of the foregoing; or any other means,
  573  method, or device.
  574         (g)(h) “Production expenditures” means the costs of
  575  tangible and intangible property used for, and services
  576  performed primarily and customarily in, production, including
  577  preproduction and postproduction, but excluding costs for
  578  development, marketing, and distribution. The term includes, but
  579  is not limited to:
  580         1. Wages, salaries, or other compensation paid to legal
  581  residents of this state, including amounts paid through payroll
  582  service companies, for technical and production crews,
  583  directors, producers, and performers.
  584         2. Net expenditures for sound stages, backlots, production
  585  editing, digital effects, sound recordings, sets, and set
  586  construction.
  587         3. Net expenditures for rental equipment, including, but
  588  not limited to, cameras and grip or electrical equipment.
  589         4. Up to $300,000 of the costs of newly purchased computer
  590  software and hardware unique to the project, including servers,
  591  data processing, and visualization technologies, which are
  592  located in and used exclusively in this the state for the
  593  production of digital media.
  594         5. Expenditures for meals, travel, and accommodations. For
  595  purposes of this paragraph, the term “net expenditures” means
  596  the actual amount of money a qualified production spent for
  597  equipment or other tangible personal property, after subtracting
  598  any consideration received for reselling or transferring the
  599  item after the qualified production ends, if applicable.
  600         (h)(i) “Qualified expenditures” means production
  601  expenditures incurred in this state by a qualified production
  602  for:
  603         1. Goods purchased or leased from, or services, including,
  604  but not limited to, insurance costs and bonding, payroll
  605  services, and legal fees, which are provided by, a vendor or
  606  supplier in this state that is registered with the Department of
  607  State or the Department of Revenue, has a physical location in
  608  this state, and employs one or more legal residents of this
  609  state. This does not include rebilled goods or services provided
  610  by an in-state company from out-of-state vendors or suppliers.
  611  When services provided by the vendor or supplier include
  612  personal services or labor, only personal services or labor
  613  provided by residents of this state, evidenced by the required
  614  documentation of residency in this state, qualify.
  615         2. Payments to legal residents of this state in the form of
  616  salary, wages, or other compensation up to a maximum of $400,000
  617  per resident unless otherwise specified in subsection (4). A
  618  completed declaration of residency in this state must accompany
  619  the documentation submitted to the department office for
  620  reimbursement.
  621  
  622  For a qualified production involving an event, such as an awards
  623  show, the term does not include expenditures solely associated
  624  with the event itself and not directly required by the
  625  production. The term does not include expenditures incurred
  626  before certification, with the exception of those incurred for a
  627  commercial, a music video, or the pickup of additional episodes
  628  of a high-impact television series within a single season. Under
  629  no circumstances may The qualified production may not include in
  630  the calculation for qualified expenditures the original purchase
  631  price for equipment or other tangible property that is later
  632  sold or transferred by the qualified production for
  633  consideration. In such cases, the qualified expenditure is the
  634  net of the original purchase price minus the consideration
  635  received upon sale or transfer.
  636         (i)(j) “Qualified production” means a production in this
  637  state meeting the requirements of this section. The term does
  638  not include a production:
  639         1. In which, for the first 2 years of the incentive
  640  program, less than 50 percent, and thereafter, less than 70 60
  641  percent, of the positions that make up its production cast and
  642  below-the-line production crew, or, in the case of digital media
  643  projects, less than 80 75 percent of such positions, are filled
  644  by legal residents of this state, whose residency is
  645  demonstrated by a valid Florida driver license or other state
  646  issued identification confirming residency, or students enrolled
  647  full-time in an entertainment-related a film-and-entertainment
  648  related course of study at an institution of higher education in
  649  this state; or
  650         2. That contains obscene content as defined in s.
  651  847.001(10).
  652         (j)(k) “Qualified production company” means a corporation,
  653  limited liability company, partnership, or other legal entity
  654  engaged in one or more productions in this state.
  655         (l) “Qualified digital media production facility” means a
  656  building or series of buildings and their improvements in which
  657  data processing, visualization, and sound synchronization
  658  technologies are regularly applied for the production of
  659  qualified digital media projects or the digital animation
  660  components of qualified productions.
  661         (m) “Qualified production facility” means a building or
  662  complex of buildings and their improvements and associated
  663  backlot facilities in which regular filming activity for film or
  664  television has occurred for a period of no less than 1 year and
  665  which contain at least one sound stage of at least 7,800 square
  666  feet.
  667         (n) “Regional population ratio” means the ratio of the
  668  population of a region to the population of this state. The
  669  regional population ratio applicable to a given fiscal year is
  670  the regional population ratio calculated by the Office of Film
  671  and Entertainment using the latest official estimates of
  672  population certified under s. 186.901, available on the first
  673  day of that fiscal year.
  674         (o) “Regional tax credit ratio” means a ratio the numerator
  675  of which is the sum of tax credits awarded to productions in a
  676  region to date plus the tax credits certified, but not yet
  677  awarded, to productions currently in that region and the
  678  denominator of which is the sum of all tax credits awarded in
  679  the state to date plus all tax credits certified, but not yet
  680  awarded, to productions currently in the state. The regional tax
  681  credit ratio applicable to a given year is the regional tax
  682  credit ratio calculated by the Office of Film and Entertainment
  683  using credit award and certification information available on
  684  the first day of that fiscal year.
  685         (p) “Underutilized region” for a given state fiscal year
  686  means a region with a regional tax credit ratio applicable to
  687  that fiscal year that is lower than its regional population
  688  ratio applicable to that fiscal year. The following regions are
  689  established for purposes of making this determination:
  690         1. North Region, consisting of Alachua, Baker, Bay,
  691  Bradford, Calhoun, Clay, Columbia, Dixie, Duval, Escambia,
  692  Franklin, Gadsden, Gilchrist, Gulf, Hamilton, Holmes, Jackson,
  693  Jefferson, Lafayette, Leon, Levy, Liberty, Madison, Nassau,
  694  Okaloosa, Putnam, Santa Rosa, St. Johns, Suwannee, Taylor,
  695  Union, Wakulla, Walton, and Washington Counties.
  696         2. Central East Region, consisting of Brevard, Flagler,
  697  Indian River, Lake, Okeechobee, Orange, Osceola, Seminole, St.
  698  Lucie, and Volusia Counties.
  699         3. Central West Region, consisting of Citrus, Hernando,
  700  Hillsborough, Manatee, Marion, Polk, Pasco, Pinellas, Sarasota,
  701  and Sumter Counties.
  702         4. Southwest Region, consisting of Charlotte, Collier,
  703  DeSoto, Glades, Hardee, Hendry, Highlands, and Lee Counties.
  704         5. Southeast Region, consisting of Broward, Martin, Miami
  705  Dade, Monroe, and Palm Beach Counties.
  706         (k)(q) “Interactive website” means a website or group of
  707  websites that includes interactive and downloadable content, and
  708  creates 25 new Florida full-time equivalent positions operating
  709  from a principal place of business located within Florida. An
  710  interactive website or group of websites must provide
  711  documentation that those jobs were created to the department
  712  before Office of Film and Entertainment prior to the award of
  713  tax credits. Each subsequent program application must provide
  714  proof that 25 Florida full-time equivalent positions are
  715  maintained.
  716         (2) CREATION AND PURPOSE OF PROGRAM.—The entertainment
  717  industry financial incentive program is created within the
  718  department Office of Film and Entertainment. The purpose of this
  719  program is to encourage the use of this state as a site for
  720  entertainment production, for filming, and for the digital
  721  production of entertainment films, and to develop and sustain
  722  the workforce and infrastructure for film, digital media, and
  723  entertainment production.
  724         (3) APPLICATION PROCEDURE; APPROVAL PROCESS.—
  725         (a) Program application.—A qualified production company
  726  producing a qualified production in this state may submit a
  727  program application to the department Office of Film and
  728  Entertainment for the purpose of determining qualification for
  729  an award of tax credits authorized by this section no earlier
  730  than 180 days before the first day of principal photography or
  731  project start date in this state. The applicant shall provide
  732  the department Office of Film and Entertainment with information
  733  required to determine whether the production is a qualified
  734  production and to determine the qualified expenditures and other
  735  information necessary for the department office to determine
  736  eligibility for the tax credit.
  737         (b) Required documentation.—The department Office of Film
  738  and Entertainment shall develop an application form for
  739  qualifying an applicant as a qualified production. The form must
  740  include, but need not be limited to, production-related
  741  information concerning employment of residents in this state;, a
  742  detailed budget of planned qualified expenditures and aggregate
  743  nonqualified expenditures, including capital investment, in this
  744  state; proof of financing for the production;, and the
  745  applicant’s signed affirmation that the information on the form
  746  has been verified and is correct. The Division Office of Film
  747  and Entertainment and local film commissions shall distribute
  748  the form.
  749         (c) Application process.—The department Office of Film and
  750  Entertainment shall establish a process by which an application
  751  is accepted and reviewed and by which tax credit eligibility and
  752  award amount are determined. The department may consult with the
  753  Division Office of Film and Entertainment or may request
  754  assistance from a duly appointed local film commission in
  755  determining compliance with this section.
  756         1.Each year, there shall be two periods during which
  757  applications may be accepted. The application periods shall run
  758  from January 1 through June 30 and July 1 through December 31.
  759  One-half of the tax credits allocated for the fiscal year under
  760  paragraph (7)(a) shall be available during each application
  761  period. Applications remaining in the queue on June 30 and
  762  December 31 of each year are deemed denied. For each application
  763  period, applications by qualified production companies which are
  764  received after one-half of the tax credits allocated for the
  765  fiscal year have been certified, but before the total applied
  766  for exceeds 125 percent of the one-half of the tax credits
  767  allocated for the fiscal year, shall be assigned a queue number
  768  that is determined by the date and time the application was
  769  received by the department. These queued applications may be
  770  considered for tax credit allocations that become available for
  771  certification during the application period. For each
  772  application period, the department shall deny any application
  773  received after the total amount of tax credits applied for
  774  exceeds 125 percent of the one-half of the tax credits allocated
  775  for the fiscal year.
  776         2. A certified high-impact television series may submit an
  777  initial application for no more than two successive seasons,
  778  notwithstanding the fact that the second season has successive
  779  seasons have not been ordered. The successive season’s qualified
  780  expenditure amounts for the second season shall be based on the
  781  current season’s estimated qualified expenditures. Upon the
  782  completion of production of each season, a high-impact
  783  television series may submit an application for no more than one
  784  additional season. To be certified for a tax credit, the
  785  applicant must affirm that the additional season is likely to be
  786  ordered as part of the application for the additional season and
  787  must agree to notify the department within 10 days if the
  788  additional season is not ordered or is cancelled.
  789         (d) Certification.—
  790         1. The department Office of Film and Entertainment shall
  791  review the application within 15 business days after receipt.
  792  The department, in consultation with the Division of Film and
  793  Entertainment, shall determine if Upon its determination that
  794  the application contains all the information required by this
  795  subsection and meets the criteria set out in this section, and
  796  the Office of Film and Entertainment shall deny qualify the
  797  applicant and recommend to the department that the applicant be
  798  certified for the maximum tax credit award amount. Within 5
  799  business days after receipt of the recommendation, the
  800  department shall reject the application, place the application
  801  in the queue pursuant to paragraph (c), recommendation or
  802  certify the maximum recommended tax credit award, if any funds
  803  are available, to the applicant and to the executive director of
  804  the Department of Revenue.
  805         2. The department may not certify tax credits in an amount
  806  greater than the allocation for a specified fiscal year, as
  807  determined under subsection (7). However, pursuant to
  808  subparagraph (c)2., the department may certify a tax credit for
  809  a future fiscal-year allocation for one additional season of a
  810  high-impact television series.
  811         (e) Employment.—Upon certification by the department, the
  812  production must provide the department and the Division of Film
  813  and Entertainment with a single point of contact and information
  814  related to the production’s needs for cast, crew, contractors,
  815  and vendors. The division shall publish this information online,
  816  including the type of production, the projected start date of
  817  the production, the locations in this state for such production,
  818  and the e-mail or other contact information for the production’s
  819  point of contact. The department, in consultation with the
  820  division, may adopt procedures for a production to post such
  821  information itself within 7 days after certification.
  822         (f)(e)Grounds for denial.—The department Office of Film
  823  and Entertainment shall deny an application if it determines
  824  that the application is not complete, or the production or
  825  application does not meet the requirements of this section, or
  826  the application is received after the total tax credits applied
  827  for in that application period have reached 125 percent of the
  828  one-half of the tax credits allocated for the fiscal year as
  829  provided under paragraph (c). Within 90 days after submitting a
  830  program application, except with respect to applications in the
  831  independent and emerging media queue, a production must provide
  832  proof of project financing to the Office of Film and
  833  Entertainment, otherwise the project is deemed denied and
  834  withdrawn. A project that has been denied withdrawn may submit a
  835  new application upon providing the Office of Film and
  836  Entertainment proof of financing.
  837         (g)(f)Verification of actual qualified expenditures.—
  838         1. The department, in consultation with the Division Office
  839  of Film and Entertainment, shall develop a process to verify the
  840  actual qualified expenditures of a certified production. The
  841  process must require:
  842         a. A certified production to submit, within 180 days in a
  843  timely manner after production ends in this state and after
  844  making all of its qualified expenditures in this state, data
  845  substantiating each qualified expenditure, including
  846  documentation of on the net expenditure on equipment and other
  847  tangible personal property by the qualified production and all
  848  production-related information on full- and part-time employment
  849  and wages paid to residents of this state, to an independent
  850  certified public accountant licensed in this state;
  851         b. Such accountant to conduct a compliance audit, at the
  852  certified production’s expense, to substantiate each qualified
  853  expenditure and submit the results as a report, along with the
  854  required substantiating data, to the department Office of Film
  855  and Entertainment; and
  856         c. The department Office of Film and Entertainment to
  857  review the accountant’s submittal and verify report to the
  858  department the final verified amount of actual qualified
  859  expenditures made by the certified production.
  860         2. The department shall also require a certified production
  861  to submit data substantiating aggregate nonqualified
  862  expenditures, including capital investment, in this state.
  863         3.2. The department shall determine and approve the final
  864  tax credit award amount to each certified applicant based on the
  865  final verified amount of actual qualified expenditures and
  866  evidence that the qualified production met the requirements of
  867  this section. The department shall notify the executive director
  868  of the Department of Revenue in writing that the certified
  869  production has met the requirements of the incentive program and
  870  of the final amount of the tax credit award. The final tax
  871  credit award amount may not exceed the maximum tax credit award
  872  amount certified under paragraph (d).
  873         (h)(g)Promoting Florida.—The department Office of Film and
  874  Entertainment shall ensure that, as a condition of receiving a
  875  tax credit under this section, marketing materials promoting
  876  this state as a tourist destination or film and entertainment
  877  production destination are included, when appropriate, at no
  878  cost to the state, in the qualified production or as otherwise
  879  required by the department and the Division of Film and
  880  Entertainment. The Division of Film and Entertainment shall
  881  provide the Florida Tourism Industry Marketing Corporation with
  882  the contact information for each qualified production in order
  883  for the corporation to work with the qualified production to
  884  develop the marketing materials promoting this state. The
  885  marketing materials which must, at a minimum, include placement
  886  of the “Visit Florida” logo and a “Filmed in Florida” or
  887  “Produced in Florida” logo in the end credits. The placement of
  888  the “Visit Florida” logo and a “Filmed in Florida” or “Produced
  889  in Florida” logo on all packaging material and hard media is
  890  also required, unless such placement is prohibited by licensing
  891  or other contractual obligations. The sizes size and placements
  892  placement of such logos logo shall be commensurate to other
  893  logos used. If no logos are used, the statement “Filmed in
  894  Florida using Florida’s Entertainment Industry Program Financial
  895  Incentive,” or a similar statement approved by the Division
  896  Office of Film and Entertainment, shall be used. The Division
  897  Office of Film and Entertainment shall provide a logo and supply
  898  it for the purposes specified in this paragraph. A 30-second
  899  “Visit Florida” promotional video must also be included on all
  900  optical disc formats of a film, unless such placement is
  901  prohibited by licensing or other contractual obligations. The
  902  30-second promotional video shall be approved and provided by
  903  the Florida Tourism Industry Marketing Corporation in
  904  consultation with the Division Commissioner of Film and
  905  Entertainment.
  906         (4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES;
  907  ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS;
  908  PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND
  909  ACQUISITIONS.—
  910         (a) Priority for tax credit award.—The priority of a
  911  qualified production for tax credit awards must be determined on
  912  a first-come, first-served basis within its appropriate queue.
  913  Each qualified production must be placed into the appropriate
  914  queue and is subject to the requirements of that queue.
  915         (b) Tax credit eligibility.—
  916         1. General production queue.—Ninety-four percent of tax
  917  credits authorized pursuant to subsection (7) (6) in any state
  918  fiscal year must be dedicated to the general production queue.
  919  The general production queue consists of all qualified
  920  productions other than those eligible for the commercial and
  921  music video queue or the independent and emerging media
  922  production queue. A qualified production that demonstrates a
  923  minimum of $625,000 in qualified expenditures is eligible for
  924  tax credits equal to 20 percent of its actual qualified
  925  expenditures, up to a maximum of $8 million. A qualified
  926  production that incurs qualified expenditures during multiple
  927  state fiscal years may combine those expenditures to satisfy the
  928  $625,000 minimum threshold.
  929         a. For the first 4 months of each application period under
  930  paragraph (3)(c), 20 percent of the tax credits dedicated to the
  931  general production queue shall be set aside for qualified
  932  productions in underutilized counties. A qualified production
  933  eligible for these tax credits is a production for which at
  934  least 70 percent of its principal photography days occur within
  935  an underutilized county. The underutilized county must be
  936  designated as an underutilized county at the time that the
  937  production is certified. As used in this subparagraph, the term
  938  “underutilized county” means a county in which less than
  939  $500,000 in qualified expenditures were made in the last 2
  940  fiscal years. Any tax credit not certified from this set-aside
  941  at the end of each 4-month period may be certified to qualified
  942  productions pursuant to this section An off-season certified
  943  production that is a feature film, independent film, or
  944  television series or pilot is eligible for an additional 5
  945  percent tax credit on actual qualified expenditures. An off
  946  season certified production that does not complete 75 percent of
  947  principal photography due to a disruption caused by a hurricane
  948  or tropical storm may not be disqualified from eligibility for
  949  the additional 5 percent credit as a result of the disruption.
  950         b. If more than 45 percent of the sum of total tax credits
  951  initially certified and awarded after April 1, 2012, total tax
  952  credits initially certified after April 1, 2012, but not yet
  953  awarded, and total tax credits available for certification after
  954  April 1, 2012, but not yet certified has been awarded for high
  955  impact television series, then no high-impact television series
  956  is eligible for tax credits under this subparagraph. Tax credits
  957  initially certified for a high-impact television series after
  958  April 1, 2012, may not be awarded if the award will cause the
  959  percentage threshold in this sub-subparagraph to be exceeded.
  960  This sub-subparagraph does not prohibit the award of tax credits
  961  certified before April 1, 2012, for high-impact television
  962  series.
  963         b.c.Subject to sub-subparagraph b., First priority in the
  964  queue for tax credit awards not yet certified shall be given to
  965  high-impact television series and high-impact digital media
  966  projects. For the purposes of determining priority between a
  967  high-impact television series and a high-impact digital media
  968  project, the first position must go to the first application
  969  received. Thereafter, priority shall be determined by
  970  alternating between a high-impact television series and a high
  971  impact digital media project on a first-come, first-served
  972  basis. However, if the Office of Film and Entertainment receives
  973  an application for a high-impact television series or high
  974  impact digital media project that would be certified but for the
  975  alternating priority, the office may certify the project as
  976  being in the priority position if an application that would
  977  normally be the priority position is not received within 5
  978  business days.
  979         d. A qualified production for which at least 67 percent of
  980  its principal photography days occur within a region designated
  981  as an underutilized region at the time that the production is
  982  certified is eligible for an additional 5 percent tax credit.
  983         c.e. A qualified production that employs students enrolled
  984  full-time in a film and entertainment-related or digital media
  985  related course of study at an institution of higher education in
  986  this state is eligible for an additional 15 percent tax credit
  987  on qualified expenditures that are wages, salaries, or other
  988  compensation paid to such students. The additional 15 percent
  989  tax credit is also applicable to persons hired within 12 months
  990  after graduating from a film and entertainment-related or
  991  digital media-related course of study at an institution of
  992  higher education in this state. The additional 15 percent tax
  993  credit applies to qualified expenditures that are wages,
  994  salaries, or other compensation paid to such recent graduates
  995  for 1 year after the date of hiring.
  996         f. A qualified production for which 50 percent or more of
  997  its principal photography occurs at a qualified production
  998  facility, or a qualified digital media project or the digital
  999  animation component of a qualified production for which 50
 1000  percent or more of the project’s or component’s qualified
 1001  expenditures are related to a qualified digital media production
 1002  facility, is eligible for an additional 5 percent tax credit on
 1003  actual qualified expenditures for production activity at that
 1004  facility.
 1005         d. A qualified production that completes a capital
 1006  investment in this state of at least $2 million for property
 1007  improvements before the completion of the qualified production
 1008  is eligible for an additional 5 percent tax credit. The capital
 1009  investment must be permanent and must be made after July 1,
 1010  2015, and the property must remain in this state after the
 1011  production ends. A capital investment may be the basis of an
 1012  application only once, unless the qualified production makes an
 1013  additional $2 million of substantial changes to the property.
 1014         e. A qualified production determined by the department to
 1015  be a family-friendly production, based on review of the script
 1016  and review of the final release version, is eligible for an
 1017  additional 5 percent tax credit. The department must consult
 1018  with the Division of Film and Entertainment in making this
 1019  determination.
 1020         f.g. A qualified production is not eligible for tax credits
 1021  provided under this paragraph totaling more than 25 30 percent
 1022  of its actual qualified expenses.
 1023         2. Commercial and music video queue.—Three percent of tax
 1024  credits authorized pursuant to subsection (7) (6) in any state
 1025  fiscal year must be dedicated to the commercial and music video
 1026  queue. A qualified production company that produces national or
 1027  regional commercials or music videos may be eligible for a tax
 1028  credit award if it demonstrates a minimum of $100,000 in
 1029  qualified expenditures per national or regional commercial or
 1030  music video and exceeds a combined threshold of $500,000 after
 1031  combining actual qualified expenditures from qualified
 1032  commercials and music videos during a single state fiscal year.
 1033  After a qualified production company that produces commercials,
 1034  music videos, or both reaches the threshold of $500,000, it is
 1035  eligible to apply for certification for a tax credit award. The
 1036  maximum credit award shall be equal to 20 percent of its actual
 1037  qualified expenditures up to a maximum of $500,000. If there is
 1038  a surplus at the end of a fiscal year after the department
 1039  Office of Film and Entertainment certifies and determines the
 1040  tax credits for all qualified commercial and video projects,
 1041  such surplus tax credits shall be carried forward to the
 1042  following fiscal year and are available to any eligible
 1043  qualified productions under the general production queue.
 1044         3. Independent and emerging media production queue.—Three
 1045  percent of tax credits authorized pursuant to subsection (7) (6)
 1046  in any state fiscal year must be dedicated to the independent
 1047  and emerging media production queue. This queue is intended to
 1048  encourage independent film and emerging media production in this
 1049  state. Any qualified production, excluding commercials,
 1050  infomercials, or music videos, which demonstrates at least
 1051  $100,000, but not more than $625,000, in total qualified
 1052  expenditures is eligible for tax credits equal to 20 percent of
 1053  its actual qualified expenditures. If a surplus exists at the
 1054  end of a fiscal year after the department Office of Film and
 1055  Entertainment certifies and determines the tax credits for all
 1056  qualified independent and emerging media production projects,
 1057  such surplus tax credits shall be carried forward to the
 1058  following fiscal year and are available to any eligible
 1059  qualified productions under the general production queue.
 1060         4. Family-friendly productions.—A certified theatrical or
 1061  direct-to-video motion picture production or video game
 1062  determined by the Commissioner of Film and Entertainment, with
 1063  the advice of the Florida Film and Entertainment Advisory
 1064  Council, to be family-friendly, based on review of the script
 1065  and review of the final release version, is eligible for an
 1066  additional tax credit equal to 5 percent of its actual qualified
 1067  expenditures. Family-friendly productions are those that have
 1068  cross-generational appeal; would be considered suitable for
 1069  viewing by children age 5 or older; are appropriate in theme,
 1070  content, and language for a broad family audience; embody a
 1071  responsible resolution of issues; and do not exhibit or imply
 1072  any act of smoking, sex, nudity, or vulgar or profane language.
 1073         (c) Withdrawal of certification tax credit eligibility.The
 1074  department shall withdraw the certification of a qualified or
 1075  certified production if the must continue on a reasonable
 1076  schedule or timely completion of the certified production is
 1077  delayed, including a break in production, a change in the
 1078  production schedule, or the loss of financing for the
 1079  production. A certified production must notify the department
 1080  within 5 days after any circumstance that delays the reasonable
 1081  schedule or timely completion. The certification of a certified
 1082  production may not be withdrawn if the production provides the
 1083  department with proof of replacement financing within 10 days
 1084  after the loss of financing for the production. To keep a
 1085  reasonable schedule, the certified production must begin which
 1086  includes beginning principal photography or the production
 1087  project in this state within no more than 45 calendar days
 1088  before or after the principal photography or project start date
 1089  provided in the production’s program application. The department
 1090  shall withdraw the eligibility of a qualified or certified
 1091  production that does not continue on a reasonable schedule.
 1092         (d) Election and distribution of tax credits.—
 1093         1. A certified production company receiving a tax credit
 1094  award under this section shall, at the time the credit is
 1095  awarded by the department after production is completed and all
 1096  requirements to receive a credit award have been met, make an
 1097  irrevocable election to apply the credit against taxes due under
 1098  chapter 220, against state taxes collected or accrued under
 1099  chapter 212, or against a stated combination of the two taxes.
 1100  The election is binding upon any distributee, successor,
 1101  transferee, or purchaser. The department shall notify the
 1102  Department of Revenue of any election made pursuant to this
 1103  paragraph.
 1104         2. A qualified production company is eligible for tax
 1105  credits against its sales and use tax liabilities and corporate
 1106  income tax liabilities as provided in this section. However, tax
 1107  credits awarded under this section may not be claimed against
 1108  sales and use tax liabilities or corporate income tax
 1109  liabilities for any tax period beginning before July 1, 2011,
 1110  regardless of when the credits are applied for or awarded.
 1111         (e) Tax credit carryforward.—If the certified production
 1112  company cannot use the entire tax credit in the taxable year or
 1113  reporting period in which the credit is awarded, any excess
 1114  amount may be carried forward to a succeeding taxable year or
 1115  reporting period. A tax credit applied against taxes imposed
 1116  under chapter 212 may be carried forward for a maximum of 5
 1117  years after the date the credit is awarded. A tax credit applied
 1118  against taxes imposed under chapter 220 may be carried forward
 1119  for a maximum of 5 taxable years after the taxable year in which
 1120  date the credit is awarded. An unused remaining tax credit
 1121  expires after this period, after which the credit expires and
 1122  may not be used.
 1123         (f) Consolidated returns.—A certified production company
 1124  that files a Florida consolidated return as a member of an
 1125  affiliated group under s. 220.131(1) may be allowed the credit
 1126  on a consolidated return basis up to the amount of the tax
 1127  imposed upon the consolidated group under chapter 220.
 1128         (g) Partnership and noncorporate distributions.—A qualified
 1129  production company that is not a corporation as defined in s.
 1130  220.03 may elect to distribute tax credits awarded under this
 1131  section to its partners or members in proportion to their
 1132  respective distributive income or loss in the taxable year in
 1133  which the tax credits were awarded.
 1134         (h) Mergers or acquisitions.—Tax credits available under
 1135  this section to a certified production company may succeed to a
 1136  surviving or acquiring entity subject to the same conditions and
 1137  limitations as described in this section; however, they may not
 1138  be transferred again by the surviving or acquiring entity.
 1139         (5) TRANSFER OF TAX CREDITS.—
 1140         (a) Authorization.—Upon application to the Office of Film
 1141  and Entertainment and approval by the department, a certified
 1142  production company, or a partner or member that has received a
 1143  distribution under paragraph (4)(g), may elect to transfer, in
 1144  whole or in part, any unused credit amount granted under this
 1145  section. An election to transfer any unused tax credit amount
 1146  under chapter 212 or chapter 220 must be made no later than 5
 1147  years after the date the credit is awarded, after which period
 1148  the credit expires and may not be used. The department shall
 1149  notify the Department of Revenue of the election and transfer.
 1150         (b) Number of transfers permitted.—A certified production
 1151  company that elects to apply a credit amount against taxes
 1152  remitted under chapter 212 is permitted a one-time transfer of
 1153  unused credits to one transferee. A certified production company
 1154  that elects to apply a credit amount against taxes due under
 1155  chapter 220 is permitted a one-time transfer of unused credits
 1156  to no more than four transferees, and such transfers must occur
 1157  in the same taxable year.
 1158         (c) Transferee rights and limitations.—The transferee is
 1159  subject to the same rights and limitations as the certified
 1160  production company awarded the tax credit, except that the
 1161  initial transferee shall be permitted a one-time transfer of
 1162  unused credits to no more than two subsequent transferees, and
 1163  such transfers must occur in the same taxable year as the
 1164  credits were received by the initial transferee, after which the
 1165  subsequent transferees may not sell or otherwise transfer the
 1166  tax credit.
 1167         (6) RELINQUISHMENT OF TAX CREDITS.—
 1168         (a) Beginning July 1, 2011, a certified production company,
 1169  or any person who has acquired a tax credit from a certified
 1170  production company pursuant to subsections (4) and (5), may
 1171  elect to relinquish the tax credit to the Department of Revenue
 1172  in exchange for 90 percent of the amount of the relinquished tax
 1173  credit.
 1174         (b) The Department of Revenue may approve payments to
 1175  persons relinquishing tax credits pursuant to this subsection.
 1176         (c) Subject to legislative appropriation, the Department of
 1177  Revenue shall request the Chief Financial Officer to issue
 1178  warrants to persons relinquishing tax credits. Payments under
 1179  this subsection shall be made from the funds from which the
 1180  proceeds from the taxes against which the tax credits could have
 1181  been applied pursuant to the irrevocable election made by the
 1182  certified production company under subsection (4) are deposited.
 1183         (7) ANNUAL ALLOCATION OF TAX CREDITS.—
 1184         (a) The aggregate amount of the tax credits that may be
 1185  certified pursuant to paragraph (3)(d) may not exceed:
 1186         1. For fiscal year 2010-2011, $53.5 million.
 1187         2. For fiscal year 2011-2012, $74.5 million.
 1188         3. For fiscal years 2012-2013, 2013-2014, 2014-2015, and
 1189  2015-2016, $42 million per fiscal year.
 1190         (b) Any portion of the maximum amount of tax credits
 1191  established per fiscal year in paragraph (a) that is not
 1192  certified as of the end of a fiscal year shall be carried
 1193  forward and made available for certification during the
 1194  following 2 fiscal years in addition to the amounts available
 1195  for certification under paragraph (a) for those fiscal years.
 1196         (c) Upon approval of the final tax credit award amount
 1197  pursuant to subparagraph (3)(g)3. (3)(f)2., an amount equal to
 1198  the difference between the maximum tax credit award amount
 1199  previously certified under paragraph (3)(d) and the approved
 1200  final tax credit award amount shall immediately be available for
 1201  recertification during the current and following fiscal years in
 1202  addition to the amounts available for certification under
 1203  paragraph (a) for those fiscal years.
 1204         (d) Amounts available for certification on and after July
 1205  1, 2015, may not be certified before the fiscal year in which
 1206  they will become available as specified in paragraph (a), except
 1207  as provided in subparagraph (3)(d)2. Additionally, for amounts
 1208  available for certification on and after July 1, 2015, one-half
 1209  of the amount available in the fiscal year shall be available
 1210  for certification on July 1, and one-half of the amount
 1211  available in the fiscal year shall be available for
 1212  certification on January 1 If, during a fiscal year, the total
 1213  amount of credits applied for, pursuant to paragraph (3)(a),
 1214  exceeds the amount of credits available for certification in
 1215  that fiscal year, such excess shall be treated as having been
 1216  applied for on the first day of the next fiscal year in which
 1217  credits remain available for certification.
 1218         (8) LIMITATION WITH OTHER PROGRAMS.—A qualified production
 1219  that is certified for tax credits under this section may not
 1220  simultaneously receive benefits under ss. 288.1256 and 288.1258
 1221  for the same production.
 1222         (9)(8) RULES, POLICIES, AND PROCEDURES.—
 1223         (a) The department may adopt rules pursuant to ss.
 1224  120.536(1) and 120.54 and develop policies and procedures to
 1225  implement and administer this section, including, but not
 1226  limited to, rules specifying requirements for the application
 1227  and approval process, records required for substantiation for
 1228  tax credits, procedures for making the election in paragraph
 1229  (4)(d), the manner and form of documentation required to claim
 1230  tax credits awarded or transferred under this section, and
 1231  marketing requirements for tax credit recipients.
 1232         (b) The Department of Revenue may adopt rules pursuant to
 1233  ss. 120.536(1) and 120.54 to administer this section, including
 1234  rules governing the examination and audit procedures required to
 1235  administer this section and the manner and form of documentation
 1236  required to claim tax credits awarded, transferred, or
 1237  relinquished under this section.
 1238         (10)(9) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
 1239  CREDITS; FRAUDULENT CLAIMS.—
 1240         (a) Audit authority.—The Department of Revenue may conduct
 1241  examinations and audits as provided in s. 213.34 to verify that
 1242  tax credits under this section are received, transferred, and
 1243  applied according to the requirements of this section. If the
 1244  Department of Revenue determines that tax credits are not
 1245  received, transferred, or applied as required by this section,
 1246  it may, in addition to the remedies provided in this subsection,
 1247  pursue recovery of such funds pursuant to the laws and rules
 1248  governing the assessment of taxes.
 1249         (b) Revocation of tax credits.—The department may revoke or
 1250  modify any written decision qualifying, certifying, or otherwise
 1251  granting eligibility for tax credits under this section if it is
 1252  discovered that the tax credit applicant submitted any false
 1253  statement, representation, or certification in any application,
 1254  record, report, plan, or other document filed in an attempt to
 1255  receive tax credits under this section. The department shall
 1256  immediately notify the Department of Revenue of any revoked or
 1257  modified orders affecting previously granted tax credits.
 1258  Additionally, the applicant must notify the Department of
 1259  Revenue of any change in its tax credit claimed.
 1260         (c) Forfeiture of tax credits.—A determination by the
 1261  Department of Revenue, as a result of an audit pursuant to
 1262  paragraph (a) or from information received from the department
 1263  or the Division Office of Film and Entertainment, that an
 1264  applicant received tax credits pursuant to this section to which
 1265  the applicant was not entitled is grounds for forfeiture of
 1266  previously claimed and received tax credits. The applicant is
 1267  responsible for returning forfeited tax credits to the
 1268  Department of Revenue, and such funds shall be paid into the
 1269  General Revenue Fund of the state. Tax credits purchased in good
 1270  faith are not subject to forfeiture unless the transferee
 1271  submitted fraudulent information in the purchase or failed to
 1272  meet the requirements in subsection (5).
 1273         (d) Fraudulent claims.—Any applicant that submits
 1274  fraudulent information under this section is liable for
 1275  reimbursement of the reasonable costs and fees associated with
 1276  the review, processing, investigation, and prosecution of the
 1277  fraudulent claim. An applicant that obtains a credit payment
 1278  under this section through a claim that is fraudulent is liable
 1279  for reimbursement of the credit amount plus a penalty in an
 1280  amount double the credit amount. The penalty is in addition to
 1281  any criminal penalty to which the applicant is liable for the
 1282  same acts. The applicant is also liable for costs and fees
 1283  incurred by the state in investigating and prosecuting the
 1284  fraudulent claim.
 1285         (11)(10) ANNUAL REPORT.—Each November 1, the department
 1286  Office of Film and Entertainment shall submit an annual report
 1287  for the previous fiscal year to the Governor, the President of
 1288  the Senate, and the Speaker of the House of Representatives
 1289  which outlines the incentive program’s return on investment and
 1290  economic benefits to the state. The report must also include an
 1291  estimate of the full-time equivalent positions created by each
 1292  production that received tax credits under this section and
 1293  information relating to the distribution of productions
 1294  receiving credits by geographic region and type of production.
 1295  The report must also include the expenditures report required
 1296  under s. 288.915, s. 288.1253(3) and the information describing
 1297  the relationship between tax exemptions and incentives to
 1298  industry growth required under s. 288.1258(5), and program
 1299  performance information under s. 288.1256. The department may
 1300  work with the Division of Film and Entertainment to develop the
 1301  annual report.
 1302         (12)(11) REPEAL.—This section is repealed July 1, 2021
 1303  2016, except that:
 1304         (a) Tax credits certified under paragraph (3)(d) before
 1305  July 1, 2021 2016, may be awarded under paragraph (3)(g) (3)(f)
 1306  on or after July 1, 2021 2016, if the other requirements of this
 1307  section are met.
 1308         (b) Tax credits carried forward under paragraph (4)(e)
 1309  remain valid for the period specified.
 1310         (c) Subsections (5), (9), (8) and (10) (9) shall remain in
 1311  effect until July 1, 2026 July 1, 2021.
 1312         Section 7. Beginning July 1, 2015, if an application is on
 1313  file with the Department of Economic Opportunity to receive a
 1314  tax credit through the entertainment industry program under s.
 1315  288.1254, Florida Statutes, and has not been certified, it is
 1316  deemed denied.
 1317         Section 8. Section 288.1256, Florida Statutes, is created
 1318  to read:
 1319         288.1256 Entertainment industry quick action fund.—
 1320         (1) The entertainment industry quick action fund is created
 1321  within the department in order to respond to extraordinary
 1322  opportunities and to compete effectively with other states to
 1323  attract and retain production companies and to provide favorable
 1324  conditions for the growth of the entertainment industry in this
 1325  state.
 1326         (2) As used in this section, the term:
 1327         (a) “Division” means the Division of Film and Entertainment
 1328  within Enterprise Florida, Inc.
 1329         (b) “Off-season” means June 1 through November 30.
 1330         (c) “Principal photography” means the filming of major or
 1331  significant components of the project which involve lead actors.
 1332         (d) “Production” means a theatrical, direct-to-video, or
 1333  direct-to-Internet motion picture; a made-for-television motion
 1334  picture; visual effects or digital animation sequences produced
 1335  in conjunction with a motion picture; a commercial; a music
 1336  video; an industrial or educational film; an infomercial; a
 1337  documentary film; a television pilot program; a presentation for
 1338  a television pilot program; a television series, including, but
 1339  not limited to, a drama, a reality show, a comedy, a soap opera,
 1340  a telenovela, a game show, an awards show, or a miniseries
 1341  production; a direct-to-Internet television series; or a digital
 1342  media project by the entertainment industry. One season of a
 1343  television series is considered one production. The term does
 1344  not include a weather or market program; a sporting event or a
 1345  sporting event broadcast; a gala; a production that solicits
 1346  funds; a home shopping program; a political program; a political
 1347  documentary; political advertising; a gambling-related project
 1348  or production; a concert production; a local, regional, or
 1349  Internet-distributed-only news show or current-events show; a
 1350  sports news or sports recap show; a pornographic production; or
 1351  any production deemed obscene under chapter 847. A production
 1352  may be produced on or by film, tape, or otherwise by means of a
 1353  motion picture camera; electronic camera or device; tape device;
 1354  computer; any combination of the foregoing; or any other means,
 1355  method, or device.
 1356         (e) “Production company” means a corporation, limited
 1357  liability company, partnership, or other legal entity engaged in
 1358  one or more productions in this state.
 1359         (f) “Production expenditures” means the costs of tangible
 1360  and intangible property used for, and services performed
 1361  primarily and customarily in, production, including
 1362  preproduction and postproduction, but excluding costs for
 1363  development, marketing, and distribution. The term includes, but
 1364  is not limited to:
 1365         1. Wages, salaries, or other compensation paid to legal
 1366  residents of this state, including amounts paid through payroll
 1367  service companies, for technical and production crews,
 1368  directors, producers, and performers.
 1369         2. Net expenditures for sound stages, backlots, production
 1370  editing, digital effects, sound recordings, sets, and set
 1371  construction.
 1372         3. Net expenditures for rental equipment, including, but
 1373  not limited to, cameras and grip or electrical equipment.
 1374         4. Up to $300,000 of the costs of newly purchased computer
 1375  software and hardware unique to the project, including servers,
 1376  data processing, and visualization technologies, which are
 1377  located in and used exclusively in this state for the production
 1378  of digital media.
 1379         5. Expenditures for meals, travel, and accommodations. As
 1380  used in this paragraph, the term “net expenditures” means the
 1381  actual amount of money a project spent for equipment or other
 1382  tangible personal property, after subtracting any consideration
 1383  received for reselling or transferring the item after the
 1384  production ends, if applicable.
 1385         (g) “Project” means a production in this state meeting the
 1386  requirements of this section. The term does not include a
 1387  production:
 1388         1. In which less than 70 percent of the positions that make
 1389  up its production cast and below-the-line production crew are
 1390  filled by legal residents of this state, whose residency is
 1391  demonstrated by a valid Florida driver license or other state
 1392  issued identification confirming residency, or students enrolled
 1393  full-time in an entertainment-related course of study at an
 1394  institution of higher education in this state; or
 1395         2. That contains obscene content as defined in s.
 1396  847.001(10).
 1397         (h) “Qualified expenditures” means production expenditures
 1398  incurred in this state by a production company for:
 1399         1. Goods purchased or leased from, or services, including,
 1400  but not limited to, insurance costs and bonding, payroll
 1401  services, and legal fees, which are provided by a vendor or
 1402  supplier in this state that is registered with the Department of
 1403  State or the Department of Revenue, has a physical location in
 1404  this state, and employs one or more legal residents of this
 1405  state. This does not include rebilled goods or services provided
 1406  by an in-state company from out-of-state vendors or suppliers.
 1407  When services provided by the vendor or supplier include
 1408  personal services or labor, only personal services or labor
 1409  provided by residents of this state, evidenced by the required
 1410  documentation of residency in this state, qualify.
 1411         2. Payments to legal residents of this state in the form of
 1412  salary, wages, or other compensation up to a maximum of $400,000
 1413  per resident unless otherwise specified in subsection (4). A
 1414  completed declaration of residency in this state must accompany
 1415  the documentation submitted to the department for reimbursement.
 1416  
 1417  For a project involving an event, such as an awards show, the
 1418  term does not include expenditures solely associated with the
 1419  event itself and not directly required by the production. The
 1420  term does not include expenditures incurred before the agreement
 1421  is signed. The production company may not include in the
 1422  calculation for qualified expenditures the original purchase
 1423  price for equipment or other tangible property that is later
 1424  sold or transferred by the production company for consideration.
 1425  In such cases, the qualified expenditure is the net of the
 1426  original purchase price minus the consideration received upon
 1427  sale or transfer.
 1428         (i)“Underutilized county” means a county in which less
 1429  than $500,000 in qualified expenditures were made in the last 2
 1430  fiscal years.
 1431         (3) A production company may apply for funds from the
 1432  entertainment industry quick action fund for a production or
 1433  successive seasons of a production. The department and the
 1434  division shall jointly review and evaluate applications to
 1435  determine the eligibility of each project consistent with the
 1436  requirements of this section. The department shall select
 1437  projects that maximize the return to the state.
 1438         (4) The department and the division, in their review and
 1439  evaluation of applications, must consider the following
 1440  criteria:
 1441         (a) Expected contributions to the state’s economy,
 1442  consistent with the state strategic economic development plan
 1443  prepared by the department.
 1444         (b) The amount of qualified and nonqualifed expenditures
 1445  that will be made in this state, including spending or
 1446  contracting with Florida-based businesses and small and minority
 1447  businesses in this state.
 1448         (c) Planned or executed contracts with production
 1449  facilities or soundstages in this state and the percentage of
 1450  principal photography or production activity that will occur at
 1451  each location.
 1452         (d) Planned preproduction and postproduction to occur in
 1453  this state.
 1454         (e) The amount of capital investment, especially fixed
 1455  capital investment, to be made directly by the production
 1456  company in this state related to the project.
 1457         (f) The amount of any other capital investment to be made
 1458  in this state related to the project.
 1459         (g) The duration of the project in this state, including
 1460  whether production will occur in the off-season.
 1461         (h) The amount and duration of principal photography or
 1462  production activity that will occur in an underutilized county.
 1463         (i) The amount of promotion of Florida that the production
 1464  company will provide for the state. This includes marketing
 1465  materials promoting this state as a tourist destination or a
 1466  film and entertainment production destination; placement of
 1467  state agency logos in the production and credits; permitted use
 1468  of production assets, characters, and themes by this state;
 1469  promotional videos for this state included on optical disc
 1470  formats; and other marketing integration.
 1471         (j) The number of state residents that will be employed in
 1472  full-time equivalent and part-time positions related to the
 1473  project and the duration of such employment and the wages paid
 1474  to such persons.
 1475         (k) The employment of students enrolled full-time in an
 1476  entertainment-related course of study at an institution of
 1477  higher education in this state or of graduates from such an
 1478  institution within 12 months after graduation.
 1479         (l) Plans to work with entertainment industry-related
 1480  courses of study at an institution of higher education in this
 1481  state.
 1482         (m) The local support and any financial commitment for the
 1483  project.
 1484         (n)The project is about this state or shows this state in
 1485  a positive light.
 1486         (o) The length of time the production company has made
 1487  productions in this state, the number of productions the
 1488  production company has made in this state, and the production
 1489  company’s overall commitment to this state. This includes a
 1490  production company that is based in this state.
 1491         (p) The project is an independent film.
 1492         (q) The amount of repayment the production company agrees
 1493  to pay the state. At a minimum, the production company must
 1494  agree to repay 25 percent of its final award amount when the
 1495  production generates $20 million in gross revenues.
 1496         (r) The expected effect of the award on the viability of
 1497  the project and the probability that the project would be
 1498  undertaken in this state if funds are granted to the production
 1499  company.
 1500         (s) A review of the production company’s past activities in
 1501  this state or other states.
 1502         (5) A production company must have financing in place for a
 1503  project before it applies for funds under this section.
 1504         (6) The department shall prescribe a form upon which an
 1505  application must be made. At a minimum, the application must
 1506  include:
 1507         (a) The applicant’s federal employer identification number,
 1508  reemployment assistance account number, and state sales tax
 1509  registration number, as applicable. If such numbers are not
 1510  available at the time of application, they must be submitted to
 1511  the department in writing before the disbursement of any
 1512  payments.
 1513         (b) The signature of the applicant.
 1514         (c) A detailed budget of planned qualified and nonqualified
 1515  expenditures in this state.
 1516         (d) The type and amount of capital investment that will be
 1517  made in this state.
 1518         (e) The locations in this state at which the project will
 1519  occur.
 1520         (f) The anticipated commencement date and duration of the
 1521  project.
 1522         (g) The proposed number of state residents and nonstate
 1523  residents that will be employed in full-time equivalent and
 1524  part-time positions related to the project and wages paid to
 1525  such persons.
 1526         (h) The total number of full-time equivalent employees
 1527  employed by the production company in this state, if applicable.
 1528         (i) Proof of financing for the project.
 1529         (j) The amount of repayment the production company agrees
 1530  to pay the state.
 1531         (k)The amount of promotion of Florida that the production
 1532  company will provide for the state.
 1533         (l) An attestation verifying that information provided on
 1534  the application is true and accurate.
 1535         (m) Any additional information requested by the department
 1536  or division.
 1537         (7) The department must make a recommendation to the
 1538  Governor to approve or deny an award within 7 days after
 1539  completion of the review and evaluation. An award of funds may
 1540  not constitute more than 30 percent of qualified expenditures in
 1541  this state and may not fund wages paid to nonresidents. A
 1542  production must start within 1 year after the date the project
 1543  is approved by the Governor. The recommendation must include the
 1544  performance conditions that the project must meet to obtain
 1545  funds.
 1546         (a) The Governor may approve projects without consulting
 1547  the Legislature for projects requiring less than $2 million in
 1548  funding.
 1549         (b) For projects requiring funding in the amount of $2
 1550  million to $5 million, the Governor shall provide a written
 1551  description and evaluation of a project recommended for approval
 1552  to the chair and vice chair of the Legislative Budget Commission
 1553  at least 10 days before giving final approval for a project. The
 1554  recommendation must include the performance conditions that the
 1555  project must meet in order to obtain funds.
 1556         (c) If the chair or vice chair of the Legislative Budget
 1557  Commission or the President of the Senate or the Speaker of the
 1558  House of Representatives timely advises the Executive Office of
 1559  the Governor, in writing, that such action or proposed action
 1560  exceeds the delegated authority of the Executive Office of the
 1561  Governor or is contrary to legislative policy or intent, the
 1562  Executive Office of the Governor shall void the release of funds
 1563  and instruct the department to immediately change such action or
 1564  proposed action until the Legislative Budget Commission or the
 1565  Legislature addresses the issue.
 1566         (d) Any project exceeding $5 million must be approved by
 1567  the Legislative Budget Commission before the funding is
 1568  released.
 1569         (8) Upon the approval of the Governor, the department and
 1570  the production company shall enter into an agreement that
 1571  specifies, at a minimum:
 1572         (a) The total amount of funds awarded and the schedule of
 1573  payment.
 1574         (b) The performance conditions for payment of moneys from
 1575  the fund, including full- and part-time employment in this
 1576  state; wages paid in this state; capital investment in this
 1577  state, including fixed capital investment; marketing and
 1578  promotion in this state; the date by which production must start
 1579  and the duration of production; the amount of qualified
 1580  expenditures in this state; and the amount and timing of
 1581  repayment.
 1582         (c) The methodology for validating performance and the date
 1583  by which the production company must submit proof of performance
 1584  to the department.
 1585         (d) That the department may review and verify any records
 1586  of the production company to ascertain whether that company is
 1587  in compliance with this section and the agreement.
 1588         (e) Sanctions for failure to meet performance conditions.
 1589         (f) That payment of moneys from the fund is contingent upon
 1590  sufficient appropriation of funds by the Legislature.
 1591         (9) The agreement must be finalized and signed by an
 1592  authorized officer of the production company within 90 days
 1593  after the Governor’s approval. A production company that is
 1594  approved under this section may not simultaneously receive
 1595  benefits under ss. 288.1254 and 288.1258 for the same
 1596  production.
 1597         (10) The department shall validate contractor performance
 1598  and report such validation in the annual report required under
 1599  s. 288.1254.
 1600         (11) Contingent upon an annual appropriation by the
 1601  Legislature, the department may not approve awards in excess of
 1602  the amount appropriated for a fiscal year. The department must
 1603  maintain a schedule of funds to be paid from the appropriation
 1604  for the fiscal year that begins on July 1. For the first 6
 1605  months of each fiscal year, the department shall set aside 50
 1606  percent of the amount appropriated for the fund by the
 1607  Legislature. At the end of the 6-month period, these funds may
 1608  be used to provide funding for any project that qualifies under
 1609  this section.
 1610         (12) All funds received from the required repayment must be
 1611  deposited into the Entertainment Industry Quick Action Account
 1612  within the State Economic Enhancement and Development Trust Fund
 1613  for use in this program.
 1614         (13) Any production company that submits fraudulent
 1615  information under this section is liable for reimbursement of
 1616  the reasonable costs and fees associated with the review,
 1617  processing, investigation, and prosecution of the fraudulent
 1618  claim. A production company that receives a payment under this
 1619  section through a claim that is fraudulent is liable for
 1620  reimbursement of the payment amount plus a penalty in an amount
 1621  double the payment amount. The penalty is in addition to any
 1622  criminal penalty for which the production company is liable for
 1623  the same acts. The production company is also liable for costs
 1624  and fees incurred by the state in investigating and prosecuting
 1625  the fraudulent claim.
 1626         (14) The department may not waive any provision or provide
 1627  an extension of time to meet any requirement of this section.
 1628         (15) This section expires on July 1, 2025. An agreement in
 1629  existence on that date shall continue in effect in accordance
 1630  with its terms.
 1631         Section 9. Section 288.1258, Florida Statutes, is amended
 1632  to read:
 1633         288.1258 Entertainment industry qualified production
 1634  companies; application procedure; categories; duties of the
 1635  Department of Revenue; records and reports.—
 1636         (1) PRODUCTION COMPANIES AUTHORIZED TO APPLY.—
 1637         (a) Any production company engaged in this state in the
 1638  production of motion pictures, made-for-TV motion pictures,
 1639  television series, commercial advertising, music videos, or
 1640  sound recordings may submit an application to the Department of
 1641  Revenue to be approved by the Department of Economic Opportunity
 1642  Office of Film and Entertainment as a qualified production
 1643  company for the purpose of receiving a sales and use tax
 1644  certificate of exemption from the Department of Revenue to
 1645  exempt purchases on or after the date a complete application is
 1646  filed with the Department of Revenue for exemptions under ss.
 1647  212.031, 212.06, and 212.08.
 1648         (b) As used in For the purposes of this section, the term
 1649  “qualified production company” means any production company that
 1650  has submitted a properly completed application to the Department
 1651  of Revenue and that is subsequently qualified by the Department
 1652  of Economic Opportunity Office of Film and Entertainment.
 1653         (2) APPLICATION PROCEDURE.—
 1654         (a) The Department of Revenue shall will review all
 1655  submitted applications for the required information. Within 10
 1656  working days after the receipt of a properly completed
 1657  application, the Department of Revenue shall will forward the
 1658  completed application to the Department of Economic Opportunity
 1659  Office of Film and Entertainment for approval.
 1660         (b)1. The Department of Economic Opportunity Office of Film
 1661  and Entertainment shall establish a process by which an
 1662  entertainment industry production company may be approved by the
 1663  department office as a qualified production company and may
 1664  receive a certificate of exemption from the Department of
 1665  Revenue for the sales and use tax exemptions under ss. 212.031,
 1666  212.06, and 212.08. A production company that is approved under
 1667  this section may not simultaneously receive benefits under ss.
 1668  288.1254 and 288.1256 for the same production.
 1669         2. Upon determination by the department Office of Film and
 1670  Entertainment that a production company meets the established
 1671  approval criteria and qualifies for exemption, the department
 1672  Office of Film and Entertainment shall return the approved
 1673  application or application renewal or extension to the
 1674  Department of Revenue, which shall issue a certificate of
 1675  exemption.
 1676         3. The department Office of Film and Entertainment shall
 1677  deny an application or application for renewal or extension from
 1678  a production company if it determines that the production
 1679  company does not meet the established approval criteria.
 1680         (c) The department Office of Film and Entertainment shall
 1681  develop, with the cooperation of the Department of Revenue, the
 1682  Division of Film and Entertainment within Enterprise Florida,
 1683  Inc., and local government entertainment industry promotion
 1684  agencies, a standardized application form for use in approving
 1685  qualified production companies.
 1686         1. The application form shall include, but not be limited
 1687  to, production-related information on employment, proposed
 1688  budgets, planned purchases of items exempted from sales and use
 1689  taxes under ss. 212.031, 212.06, and 212.08, a signed
 1690  affirmation from the applicant that any items purchased for
 1691  which the applicant is seeking a tax exemption are intended for
 1692  use exclusively as an integral part of entertainment industry
 1693  preproduction, production, or postproduction activities engaged
 1694  in primarily in this state, and a signed affirmation from the
 1695  department Office of Film and Entertainment that the information
 1696  on the application form has been verified and is correct. In
 1697  lieu of information on projected employment, proposed budgets,
 1698  or planned purchases of exempted items, a production company
 1699  seeking a 1-year certificate of exemption may submit summary
 1700  historical data on employment, production budgets, and purchases
 1701  of exempted items related to production activities in this
 1702  state. Any information gathered from production companies for
 1703  the purposes of this section shall be considered confidential
 1704  taxpayer information and shall be disclosed only as provided in
 1705  s. 213.053.
 1706         2. The application form may be distributed to applicants by
 1707  the department, the Division Office of Film and Entertainment,
 1708  or local film commissions.
 1709         (d) All applications, renewals, and extensions for
 1710  designation as a qualified production company shall be processed
 1711  by the department Office of Film and Entertainment.
 1712         (e) If In the event that the Department of Revenue
 1713  determines that a production company no longer qualifies for a
 1714  certificate of exemption, or has used a certificate of exemption
 1715  for purposes other than those authorized by this section and
 1716  chapter 212, the Department of Revenue shall revoke the
 1717  certificate of exemption of that production company, and any
 1718  sales or use taxes exempted on items purchased or leased by the
 1719  production company during the time such company did not qualify
 1720  for a certificate of exemption or improperly used a certificate
 1721  of exemption shall become immediately due to the Department of
 1722  Revenue, along with interest and penalty as provided by s.
 1723  212.12. In addition to the other penalties imposed by law, any
 1724  person who knowingly and willfully falsifies an application, or
 1725  uses a certificate of exemption for purposes other than those
 1726  authorized by this section and chapter 212, commits a felony of
 1727  the third degree, punishable as provided in ss. 775.082,
 1728  775.083, and 775.084.
 1729         (3) CATEGORIES.—
 1730         (a)1. A production company may be qualified for designation
 1731  as a qualified production company for a period of 1 year if the
 1732  company has operated a business in Florida at a permanent
 1733  address for a period of 12 consecutive months. Such a qualified
 1734  production company shall receive a single 1-year certificate of
 1735  exemption from the Department of Revenue for the sales and use
 1736  tax exemptions under ss. 212.031, 212.06, and 212.08, which
 1737  certificate shall expire 1 year after issuance or upon the
 1738  cessation of business operations in the state, at which time the
 1739  certificate shall be surrendered to the Department of Revenue.
 1740         2. The Office of Film and Entertainment shall develop a
 1741  method by which A qualified production company may submit a new
 1742  application for annually renew a 1-year certificate of exemption
 1743  upon the expiration of that company’s certificate of exemption;
 1744  however, upon approval of the department, such qualified
 1745  production company may annually renew the 1-year certificate of
 1746  exemption for a period of up to 5 years without submitting
 1747  requiring the production company to resubmit a new application
 1748  during that 5-year period.
 1749         3. Each year, or upon surrender of the certificate of
 1750  exemption to the Department of Revenue, the Any qualified
 1751  production company shall may submit to the department aggregate
 1752  data for production-related information on employment,
 1753  expenditures in this state, capital investment, and purchases of
 1754  items exempted from sales and use taxes under ss. 212.031,
 1755  212.06, and 212.08 for inclusion in the annual report required
 1756  under subsection (5) a new application for a 1-year certificate
 1757  of exemption upon the expiration of that company’s certificate
 1758  of exemption.
 1759         (b)1. A production company may be qualified for designation
 1760  as a qualified production company for a period of 90 days. Such
 1761  production company shall receive a single 90-day certificate of
 1762  exemption from the Department of Revenue for the sales and use
 1763  tax exemptions under ss. 212.031, 212.06, and 212.08, which
 1764  certificate shall expire 90 days after issuance or upon the
 1765  cessation of business operations in the state at which time,
 1766  with extensions contingent upon approval of the Office of Film
 1767  and Entertainment. the certificate shall be surrendered to the
 1768  Department of Revenue upon its expiration.
 1769         2. A qualified production company may submit a new
 1770  application for a 90-day certificate of exemption each quarter
 1771  upon the expiration of that company’s certificate of exemption;
 1772  however, upon approval of the department, such qualified
 1773  production company may renew the 90-day certificate of exemption
 1774  for a period of up to 1 year without submitting a new
 1775  application during that 1-year period.
 1776         3.2.Each 90 days, or upon surrender of the certificate of
 1777  exemption to the Department of Revenue, the qualified Any
 1778  production company shall may submit to the department aggregate
 1779  data for production-related information on employment,
 1780  expenditures in this state, capital investment, and purchases of
 1781  items exempted from sales and use taxes under ss. 212.031,
 1782  212.06, and 212.08 for inclusion in the annual report required
 1783  under subsection (5) a new application for a 90-day certificate
 1784  of exemption upon the expiration of that company’s certificate
 1785  of exemption.
 1786         (4) DUTIES OF THE DEPARTMENT OF REVENUE.—
 1787         (a) The Department of Revenue shall review the initial
 1788  application and notify the applicant of any omissions and
 1789  request additional information if needed. An application shall
 1790  be complete upon receipt of all requested information. The
 1791  Department of Revenue shall forward all complete applications to
 1792  the department Office of Film and Entertainment within 10
 1793  working days.
 1794         (b) The Department of Revenue shall issue a numbered
 1795  certificate of exemption to a qualified production company
 1796  within 5 working days of the receipt of an approved application,
 1797  application renewal, or application extension from the
 1798  department Office of Film and Entertainment.
 1799         (c) The Department of Revenue may adopt promulgate such
 1800  rules and shall prescribe and publish such forms as may be
 1801  necessary to effectuate the purposes of this section or any of
 1802  the sales tax exemptions which are reasonably related to the
 1803  provisions of this section.
 1804         (d) The Department of Revenue is authorized to establish
 1805  audit procedures in accordance with the provisions of ss.
 1806  212.12, 212.13, and 213.34 which relate to the sales tax
 1807  exemption provisions of this section.
 1808         (5) RELATIONSHIP OF TAX EXEMPTIONS AND INCENTIVES TO
 1809  INDUSTRY GROWTH; REPORT TO THE LEGISLATURE.—The department
 1810  Office of Film and Entertainment shall keep annual records from
 1811  the information provided on taxpayer applications for tax
 1812  exemption certificates and regularly reported as required in
 1813  this section beginning January 1, 2001. These records also must
 1814  reflect a ratio of the annual amount of sales and use tax
 1815  exemptions under this section, plus the tax credits incentives
 1816  awarded pursuant to s. 288.1254 to the estimated amount of funds
 1817  expended by certified productions. In addition, the department
 1818  office shall maintain data showing annual growth in Florida
 1819  based entertainment industry companies and entertainment
 1820  industry employment and wages. The employment information must
 1821  include an estimate of the full-time equivalent positions
 1822  created by each production that received tax credits pursuant to
 1823  s. 288.1254. The department Office of Film and Entertainment
 1824  shall include this information in the annual report for the
 1825  entertainment industry financial incentive program required
 1826  under s. 288.1254(10).
 1827         Section 10. Subsection (1) of section 288.92, Florida
 1828  Statutes, is amended to read:
 1829         288.92 Divisions of Enterprise Florida, Inc.—
 1830         (1) Enterprise Florida, Inc., may create and dissolve
 1831  divisions as necessary to carry out its mission. Each division
 1832  shall have distinct responsibilities and complementary missions.
 1833  At a minimum, Enterprise Florida, Inc., shall have divisions
 1834  related to the following areas:
 1835         (a) International Trade and Business Development;
 1836         (b) Business Retention and Recruitment;
 1837         (c) Tourism Marketing;
 1838         (d) Minority Business Development; and
 1839         (e) Sports Industry Development; and
 1840         (f) Film and Entertainment.
 1841         Section 11. Subsection (5) of section 477.0135, Florida
 1842  Statutes, is amended to read:
 1843         477.0135 Exemptions.—
 1844         (5) A license is not required of any individual providing
 1845  makeup, special effects, or cosmetology services to an actor,
 1846  stunt person, musician, extra, or other talent during a
 1847  production recognized by the Department of Economic Opportunity
 1848  Office of Film and Entertainment as a qualified production as
 1849  defined in s. 288.1254(1). Such services are not required to be
 1850  performed in a licensed salon. Individuals exempt under this
 1851  subsection may not provide such services to the general public.
 1852         Section 12. For the purpose of incorporating the amendment
 1853  made by this act to section 288.1254, Florida Statutes, in a
 1854  reference thereto, paragraph (q) of subsection (5) of section
 1855  212.08, Florida Statutes, is reenacted to read:
 1856         212.08 Sales, rental, use, consumption, distribution, and
 1857  storage tax; specified exemptions.—The sale at retail, the
 1858  rental, the use, the consumption, the distribution, and the
 1859  storage to be used or consumed in this state of the following
 1860  are hereby specifically exempt from the tax imposed by this
 1861  chapter.
 1862         (5) EXEMPTIONS; ACCOUNT OF USE.—
 1863         (q) Entertainment industry tax credit; authorization;
 1864  eligibility for credits.—The credits against the state sales tax
 1865  authorized pursuant to s. 288.1254 shall be deducted from any
 1866  sales and use tax remitted by the dealer to the department by
 1867  electronic funds transfer and may only be deducted on a sales
 1868  and use tax return initiated through electronic data
 1869  interchange. The dealer shall separately state the credit on the
 1870  electronic return. The net amount of tax due and payable must be
 1871  remitted by electronic funds transfer. If the credit for the
 1872  qualified expenditures is larger than the amount owed on the
 1873  sales and use tax return that is eligible for the credit, the
 1874  unused amount of the credit may be carried forward to a
 1875  succeeding reporting period as provided in s. 288.1254(4)(e). A
 1876  dealer may only obtain a credit using the method described in
 1877  this subparagraph. A dealer is not authorized to obtain a credit
 1878  by applying for a refund.
 1879         Section 13. For the purpose of incorporating the amendment
 1880  made by this act to section 288.1254, Florida Statutes, in a
 1881  reference thereto, subsection (3) of section 220.1899, Florida
 1882  Statutes, is reenacted to read:
 1883         220.1899 Entertainment industry tax credit.—
 1884         (3) To the extent that the amount of a tax credit exceeds
 1885  the amount due on a return, the balance of the credit may be
 1886  carried forward to a succeeding taxable year pursuant to s.
 1887  288.1254(4)(e).
 1888         Section 14. This act shall take effect July 1, 2015.