Senate Bill 1612

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    Florida Senate - 1998                                  SB 1612

    By Senator Harris





    24-1320-98                                              See HB

  1                      A bill to be entitled

  2         An act relating to the "Florida Entertainment

  3         Industry Growth Act"; creating s. 288.125,

  4         F.S.; providing a short title; creating s.

  5         288.1251, F.S.; providing definitions; creating

  6         s. 288.1252, F.S.; creating the Entertainment

  7         Florida Council within the Office of Tourism,

  8         Trade, and Economic Development of the

  9         Executive Office of the Governor; providing

10         purpose, membership, terms, organization,

11         powers, and duties of the council; renumbering

12         and amending s. 288.12285, F.S.; correcting a

13         reference; creating s. 288.1254, F.S.; creating

14         the Office of Entertainment Industry

15         Commissioner; providing procedure for

16         appointment of the Entertainment Industry

17         Commissioner; providing powers and duties of

18         the office; creating s. 288.1255, F.S.;

19         requiring the Office of Tourism, Trade, and

20         Economic Development to adopt rules by which it

21         may make specified expenditures for expenses

22         incurred in connection with the performance of

23         the duties of the Office of the Entertainment

24         Industry Commissioner; requiring approval of

25         such rules by the Comptroller; requiring an

26         annual report; authorizing the solicitation,

27         acceptance, and use of specified goods and

28         services by employees and representatives of

29         the Office of the Entertainment Industry

30         Commissioner; providing certain requirements

31         with respect to claims for expenses; providing

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         a penalty for false or fraudulent claims;

  2         providing for civil liability; creating s.

  3         288.1256, F.S.; creating the Florida

  4         Entertainment Industry Incentive Grant Program;

  5         providing purpose of the program; providing for

  6         the development of grant criteria; providing

  7         for the administration and distribution of

  8         grant funds; requiring specified documentation

  9         prior to the release of funds; renumbering and

10         amending s. 288.055, F.S.; redesignating the

11         Florida Film and Television Investment Trust

12         Fund as the Florida Entertainment Industry

13         Incentive Grant Program Trust Fund; providing

14         for use of the trust fund; requiring the

15         maintenance of a specified trust fund balance;

16         specifying funds from which initial grants may

17         be awarded; specifying sources from which the

18         trust fund may receive moneys; creating s.

19         288.1258, F.S.; authorizing application for

20         approval by the Office of the Entertainment

21         Industry as a qualified production company for

22         purposes of receiving sales tax exemptions and

23         refunds; providing application procedure;

24         providing for denial and revocation of a

25         certificate of exemption; providing a penalty

26         for falsification or unauthorized use of an

27         application for certificate of exemption;

28         providing categories of qualification for

29         certificate of exemption; providing for renewal

30         of a certificate of exemption; providing for

31         duties of the Department of Revenue with

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         respect to sales tax exemption to qualified

  2         production companies; creating the Florida

  3         Entertainment Industry Model Permitting Task

  4         Force; providing purpose of the task force;

  5         providing for appointment of members to the

  6         task force; amending s. 14.2015, revising

  7         purposes of the Office of Tourism, Trade, and

  8         Economic Development of the Executive Office of

  9         the Governor; amending s. 212.031, F.S.,

10         relating to the lease or rental of or license

11         in real property; revising language with

12         respect to property used as an integral part of

13         the performance of qualified production

14         services; amending s. 212.06, F.S., relating to

15         the tax on sales, use, and other transactions;

16         revising language with respect to the exemption

17         for fabrication labor used in the production of

18         a qualified motion picture; amending s.

19         212.0602, F.S., which exempts the purchase or

20         lease of materials, equipment, and other items

21         by specified educational entities,

22         institutions, or organizations from the sales

23         and use tax under certain limited

24         circumstances; expanding the exemption to

25         include real or personal property and support

26         operations of such educational institutions;

27         conforming references; amending s. 212.08,

28         F.S.; revising the partial exemption from the

29         tax on sales, use, and other transactions for

30         master tapes, records, films, or video tapes to

31         include entertainment industry production

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         services and equipment within the exemption;

  2         specifying the rate of the exemption; providing

  3         a limitation on refunds; providing procedure

  4         for obtaining refunds; revising the term

  5         "amounts paid for the tangible elements";

  6         clarifying definitions; providing definitions;

  7         requiring the Office of Entertainment Industry

  8         Commissioner to keep specified records;

  9         requiring an annual report to the Legislature;

10         repealing s. 212.08(12), F.S., on October 1,

11         2008; providing for review by the Legislature

12         prior to repeal; amending s. 212.20, F.S.,

13         relating to the distribution of proceeds from

14         the tax on sales, use, and other transactions;

15         providing for the transfer of specified tax

16         proceeds to the Entertainment Industry Grant

17         Program Trust Fund; amending s. 213.053, F.S.,

18         relating to confidentiality and information

19         sharing by the Department of Revenue; providing

20         for the sharing of specified information;

21         amending ss. 212.0602, 288.108, 288.90152,

22         F.S.; conforming cross-references; repealing s.

23         212.08(5)(f), F.S.; repealing the exemption

24         from the tax on sales use and other

25         transactions for specified motion picture or

26         video equipment, and specified sound recording

27         equipment, effective January 1, 1999; repealing

28         s. 288.051, F.S., which provides a short title;

29         repealing s. 288.052, F.S., relating to

30         legislative findings and intent with respect to

31         the "Florida Film and Television Investment

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         Act"; repealing s. 288.053, F.S., relating to

  2         the Florida Film and Television Investment

  3         Board; repealing s. 288.054, F.S., relating to

  4         the administration and powers of the Florida

  5         Film and Television Investment Board;

  6         repealing s. 288.056, F.S., relating to

  7         conditions for film and television investment

  8         by the board; repealing s. 288.057, F.S., which

  9         requires an annual report by the board;

10         repealing s. 288.1228, F.S., relating to the

11         direct-support organization authorized by the

12         Office of Tourism, Trade, and Economic

13         Development to assist in the promotion and

14         development of the entertainment industry;

15         repealing s. 288.12285, F.S., relating to

16         confidentiality of identities of donors to the

17         direct-support organization; providing

18         effective dates.

19

20  Be It Enacted by the Legislature of the State of Florida:

21

22         Section 1.  Section 288.125, Florida Statutes, is

23  created to read:

24         288.125  Short title.--Sections 288.1251 through

25  288.1258 shall be known and may be cited as the "Florida

26  Entertainment Industry Growth Act."

27         Section 2.  Section 288.1251, Florida Statutes, is

28  created to read:

29         288.1251  Definitions.--For the purposes of this act,

30  the term:

31

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         (1)  "Entertainment industry" means any person engaged

  2  in the operation of motion picture or television studios or

  3  recording studios, or any person engaged in the production of

  4  motion pictures, made-for-TV motion pictures, television

  5  series, commercial advertising, music videos, or sound

  6  recordings.

  7         (2)  "Motion picture or television studio" means a

  8  facility in which film or video tape productions or parts of

  9  productions are made and which contains the necessary

10  equipment and personnel for this purpose and also means a

11  mobile unit or vehicle that is equipped in much the same

12  manner as a stationary studio and used in the making of film

13  or video tape productions.

14         (3)  "Motion picture" means any live-action or animated

15  feature-length or short subject audiovisual work at any stage

16  of the production, consisting of a series of related images,

17  either on film, tape, or other embodiment, including, but not

18  limited to, all items comprising part of the work and

19  film-related products derived therefrom as well as duplicates

20  and prints thereof and all sound recordings created to

21  accompany a motion picture, which is produced, adapted, or

22  altered for exploitation in, on, or through any medium or

23  device and at any location, primarily for entertainment,

24  commercial, industrial, or educational purposes.

25         (4)  "Commercial advertising production" means any

26  film, video, audio, or photographic production that is created

27  to promote statewide, nationally, or internationally specific

28  brands, products, services, retailers, or advocacy positions

29  for commercial purposes.

30         (5)  "Recording studio" means a place where, by means

31  of mechanical or electronic devices, voices, music, or other

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  sounds are transmitted to tapes, records, or other devices

  2  capable of storing and reproducing sound.

  3         (6)  "Recording industry" means any person engaged in

  4  an occupation or business of making recordings embodying sound

  5  for a livelihood or for a profit.

  6         (7)  "Sound recording" means a recording of voices,

  7  music, or other sounds by mechanical or electronic

  8  transmission to tapes, records, or other devices capable of

  9  storing and reproducing sound.

10         (8)  "Music video production" means a cohesive

11  compilation of motion pictures with a specific sound recording

12  product for the purpose of broadcasting on a music television

13  network or for commercial distribution.

14         (9)  "Production" means any production, or part

15  thereof, of motion pictures, made-for-TV motion pictures,

16  television series, commercial advertising productions, music

17  videos, or sound recordings as defined by this act.

18         (10)  "Preproduction activities" means those

19  preliminary activities performed directly in connection with

20  the production of a motion picture, made-for-TV motion

21  picture, television series, commercial advertising production,

22  music video, or sound recording, which include, but are not

23  limited to, obtaining story rights, scriptwriting,

24  storyboarding, budgeting, scheduling, and assembling the

25  financing, producers, director, and prime talent.

26         (11)  "Production activities" means those activities

27  performed in direct connection with the production, or any

28  part thereof, of a motion picture, made-for-TV motion picture,

29  television series, commercial advertising production, music

30  video, or sound recording, which include, but are not limited

31  to, location scouting and managing, set construction and

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  acquisition, props acquisition, wardrobe construction and

  2  acquisition, hair and makeup design and execution,

  3  cinematography, photography, videography, sound recording, and

  4  personnel travel and meal acquisition and related activities.

  5         (12)  "Postproduction activities" means those

  6  activities performed directly in connection with transforming

  7  the individual images and sounds recorded during production

  8  into a cohesive body, which include, but are not limited to,

  9  editing, dubbing, creating supplementary sound tracks,

10  automated dialogue replacement, foley stage recording, sound

11  mixing, creating special effects, two-dimensional and

12  three-dimensional graphics and animation, and creating credit

13  titles.

14         (13)  "Producer" means any person who causes to be made

15  a motion picture, made-for-TV motion picture, television

16  series, commercial advertising, music video, or sound

17  recording, or any part thereof, primarily for entertainment,

18  commercial, industrial, or educational purposes.

19         (14)  "Council" means the Entertainment Florida

20  Council.

21         Section 3.  Section 288.1252, Florida Statutes, is

22  created to read:

23         288.1252  Entertainment Florida Council; creation;

24  purpose; membership; nominating council; powers and duties.--

25         (1)  CREATION.--There is hereby created within the

26  Office of Tourism, Trade, and Economic Development of the

27  Executive Office of the Governor, for administrative purposes

28  only, the Entertainment Florida Council.

29         (2)  PURPOSE.--The purpose of the council shall be to

30  serve as an advisory body to the Office of Tourism, Trade, and

31  Economic Development and to the Office of the Entertainment

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  Industry Commissioner to provide these offices with industry

  2  insight and expertise related to developing, promoting, and

  3  providing service to the state's entertainment industry and to

  4  provide private sector supplemental financial support to the

  5  programs of the Office of the Entertainment Industry

  6  Commissioner.

  7         (3)  MEMBERSHIP.--

  8         (a)  The council shall consist of 17 members, five to

  9  be appointed by the Governor, six to be appointed by the

10  President of the Senate, and six to be appointed by the

11  Speaker of the House of Representatives, with the initial

12  appointments being made no later than July 1, 1998.

13         (b)  When making appointments to the council, the

14  Governor, the President of the Senate, and the Speaker of the

15  House of Representatives shall appoint persons who are

16  residents of the state and who are highly knowledgeable of,

17  active in, and recognized leaders in Florida's motion picture,

18  television, video, sound recording or other entertainment

19  industries. These persons shall include, but not be limited

20  to, representatives of local government film commissions,

21  representatives of entertainment associations, and board

22  chairs, presidents, chief executive officers, chief operating

23  officers, or persons of comparable executive position or

24  stature of leading or otherwise important entertainment

25  industry businesses.  Council members shall be appointed in

26  such a manner as to equitably represent the broadest spectrum

27  of the entertainment industry and geographic areas of the

28  state.

29         (c)  Council members shall serve for 4-year terms,

30  except that the initial terms shall be staggered:

31

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         1.  The Governor shall appoint one member for a 1-year

  2  term, one member for a 2-year term, one member for a 3-year

  3  term, and two members for 4-year terms.

  4         2.  The President of the Senate shall appoint one

  5  member for a 1-year term, two members for 2-year terms, two

  6  members for 3-year terms, and one member for a 4-year term.

  7         3.  The Speaker of the House of Representatives shall

  8  appoint one member for a 1-year term, two members for 2-year

  9  terms, two members for 3-year terms, and one member for a

10  4-year term.

11         (d)  Subsequent appointments shall be made by the

12  official who appointed the council member whose expired term

13  is to be filled.

14         (e)  Absence from three consecutive meetings shall

15  result in automatic removal from the council.

16         (f)  A vacancy on the council shall be filled for the

17  remainder of the unexpired term by the official who appointed

18  the vacating member.

19         (g)  No more than one member of the council may be an

20  employee of any one company, organization, or association.

21         (h)  Any member shall be eligible for reappointment but

22  may not serve more than two consecutive terms.

23         (i)  The council shall meet no less frequently than

24  once each quarter of the calendar year, but may meet more

25  often as set by the council.

26         (j)  The council shall annually elect one member to

27  serve as chair of the council and one member to serve as vice

28  chair.  The Office of the Entertainment Industry Commissioner

29  shall provide staff assistance to the council, which shall

30  include, but not be limited to, keeping records of the

31  proceedings and financial activities of the council, and

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  serving as custodian of all books, documents, and papers filed

  2  with the council.

  3         (k)  A majority of the members of the council shall

  4  constitute a quorum.

  5         (l)  Members of the council shall serve without

  6  compensation, but shall be entitled to reimbursement for per

  7  diem and travel expenses in accordance with s. 112.061 while

  8  in performance of their duties.

  9         (m)  Each member of the council shall file full and

10  public disclosure of financial interests at the times and

11  places and in the same manner required of elected

12  constitutional officers under s. 8, Art. II of the State

13  Constitution and any law implementing that provision.

14         (n)  The Entertainment Industry Commissioner shall be

15  an ex officio member of the council.

16         (4)  POWERS AND DUTIES.--Entertainment Florida Council

17  shall have all the powers necessary or convenient to carry out

18  and effectuate the purposes and provisions of this act,

19  including, but not limited to, the power to:

20         (a)  Adopt bylaws for the governance of its affairs and

21  the conduct of its business and rules to implement the

22  provisions of this act.

23         (b)  Make and execute contracts and other instruments

24  necessary or convenient for the exercise of its powers and

25  functions, including, but not limited to, a contract with a

26  direct-support organization.

27         (c)  Create a direct-support organization to raise

28  funds to provide supplemental support for the operation and

29  programs of the Office of the Entertainment Industry

30  Commissioner and serve as the board of directors of such an

31  organization, which shall:

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         1.  Be a Florida corporation not for profit,

  2  incorporated under the provisions of chapter 617 and approved

  3  by the Department of State.

  4         2.  Be organized and operated exclusively to receive,

  5  hold, invest, and administer property, to raise funds and

  6  accept gifts, and to make expenditures to supplement the

  7  activities, services, functions, and programs of the Office of

  8  the Entertainment Industry Commissioner.

  9         3.  Be certified annually by the Office of Tourism,

10  Trade, and Economic Development as operating in a manner

11  consistent with the goals of the approved strategic plan for

12  the Office of the Entertainment Industry Commissioner.

13         4.  Be governed by a board of directors whose

14  membership is synonymous with the membership of the

15  Entertainment Florida Council.

16         5.  Make provisions for an annual postaudit of its

17  financial accounts to be conducted by an independent certified

18  public accountant in accordance with rules promulgated by the

19  Auditor General.  The annual audit report shall include a

20  management letter and shall be submitted to the Auditor

21  General and the Office of Tourism, Trade, and Economic

22  Development for review.  The Office of Tourism, Trade, and

23  Economic Development and the Auditor General shall have the

24  authority to require and receive from the organization or its

25  independent auditor any detail or supplemental data relative

26  to the operation of the organization.

27         6.  Not be considered an agency for the purposes of

28  chapters 120, 216, and 287; ss. 255.21, 255.25, and 255.254,

29  relating to leasing of buildings; ss. 283.33 and 283.35,

30  relating to bids for printing; s. 215.31; and parts I, II, and

31  IV through VIII of chapter 112.

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         (d)  Develop a 5-year strategic plan, by no later than

  2  June 30, 1999, to guide the activities of the Office of the

  3  Entertainment Industry Commissioner.  The plan shall:

  4         1.  Be annual in construction and ongoing in nature.

  5         2.  Include recommendations relating to the

  6  organizational structure of the Office of the Entertainment

  7  Industry Commissioner.

  8         3.  Include an annual budget projection for the Office

  9  of the Entertainment Industry Commissioner for each year of

10  the plan.

11         4.  Include an operational model for the Office of the

12  Entertainment Industry Commissioner to use in implementing

13  programs designed to:

14         a.  Develop and promote the state's entertainment

15  industry.

16         b.  Have the office serve as a liaison between the

17  entertainment industry and other state and local governmental

18  agencies and labor organizations.

19         c.  Gather statistical information related to the

20  state's entertainment industry.

21         d.  Provide information and service to businesses,

22  communities, organizations and individuals engaged in

23  entertainment industry activities.

24         e.  Administer field offices.

25         f.  Administer the Entertainment Industry Incentive

26  Grant program.

27         5.  Include recommendations regarding specific

28  performance standards and measurable outcomes for the

29  programs to be implemented by the Office of the Entertainment

30  Industry Commissioner.

31

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         6.  Include an ongoing assessment of, and make

  2  recommendations on, the feasibility of creating an alternative

  3  public/private partnership for the purpose of contracting with

  4  such a partnership for the administration of the state's

  5  entertainment industry promotion, development, and industry

  6  service programs.

  7         (e)  Oversee the Entertainment Industry Commissioner's

  8  administration of the programs related to the approved

  9  strategic plan, and advise the Office of Tourism, Trade, and

10  Economic Development on whether the Commissioner is

11  effectively administering such programs.

12         (f)  Appear on its own behalf before boards,

13  commissions, departments, or other agencies of municipal,

14  county, or state government, or the Federal Government.

15         (g)  Do any and all things necessary or convenient to

16  carry out the purposes of and exercise the powers granted in

17  this act.

18         (h)  Provide financial supplements to the programs of

19  the Office of the Entertainment Industry Commissioner.

20         Section 4.  Section 288.12285, Florida Statutes, is

21  renumbered as section 288.1253, Florida Statutes, and amended

22  to read:

23         288.1253 288.12285  Promotion and development of

24  entertainment industries; direct-support organization;

25  confidentiality of donor identities.--The identity of a donor

26  or prospective donor to the direct-support organization

27  authorized under s. 288.1252 s. 288.1228 who desires to remain

28  anonymous and all information identifying such donor or

29  prospective donor are confidential and exempt from s.

30  119.07(1) and s. 24(a), Art. I of the State Constitution.

31  Such anonymity shall be maintained in audit reports.  This

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  section expires October 2, 2001, and is subject to review by

  2  the Legislature under the Open Government Sunset Review Act of

  3  1995 in accordance with s. 119.15 before that date.

  4         Section 5.  Section 288.1254, Florida Statutes, is

  5  created to read:

  6         288.1254  Promotion and development of entertainment

  7  industry; Office of the Entertainment Industry Commissioner;

  8  creation; purpose; powers and duties.--

  9         (1)  CREATION.--

10         (a)  There is hereby created within the Office of

11  Tourism, Trade, and Economic Development the Office of the

12  Entertainment Industry Commissioner for the purpose of

13  developing, promoting, and providing services to the state's

14  entertainment industry.

15         (b)  The Office of Tourism, Trade, and Economic

16  Development shall conduct a national search for a qualified

17  person to fill the position of Entertainment Industry

18  Commissioner, and the Executive Director of the Office of

19  Tourism, Trade, and Economic Development shall appoint the

20  Entertainment Industry Commissioner from a list of the top

21  three candidates recommended by the Entertainment Florida

22  Council.

23         (2)  POWERS AND DUTIES.--

24         (a)  The Office of the Entertainment Industry

25  Commissioner, in performance of its duties, shall:

26         1.  Implement the approved 5-year strategic plan

27  developed by the Entertainment Florida Council for

28  entertainment industry development, promotion, liaison

29  services, field office administration, information, and

30  production incentive grant program administration.

31

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         2.  Develop and facilitate a smooth working

  2  relationship between state agencies and local governments in

  3  cooperation with local film commission offices for

  4  out-of-state and indigenous entertainment industry production

  5  entities.

  6         3.  Implement a structured methodology prescribed for

  7  coordinating activities of local offices with each other and

  8  the commissioner's office.

  9         4.  Represent the state's indigenous entertainment

10  industry to key decisionmakers within the national and

11  international entertainment industry, and to state and local

12  officials.

13         5.  Prepare an inventory of entertainment industry

14  asset information on talent, crew, related businesses, and

15  support services and coordinate with local offices to develop

16  an information tool for common use.

17         6.  Represent key decisionmakers within the national

18  and international entertainment industry to the indigenous

19  entertainment industry and to state and local officials.

20         7.  Serve as liaison between entertainment industry

21  producers and labor organizations.

22         8.  Administer the production incentive grant program

23  under s. 288.1256.

24         (b)  The Office of the Entertainment Industry

25  Commissioner, in the performance of its duties, may:

26         1.  Conduct or contract for specific promotion and

27  marketing functions, including, but not limited to, production

28  of a statewide directory, production and maintenance of an

29  Internet web site, organization of trade show participation,

30  and appropriate cooperative marketing opportunities.

31

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         2.  Conduct its affairs, carry on its operations,

  2  establish offices, and exercise the powers granted by this act

  3  in any state, territory, district, or possession of the United

  4  States.

  5         3.  Carry out any program of information, special

  6  events, or publicity designed to attract entertainment

  7  industry to Florida.

  8         4.  Encourage and cooperate with other public and

  9  private organizations or groups in their efforts to publicize

10  to the entertainment industry in this state, other states, and

11  other countries the depth of Florida's entertainment industry

12  talent, crew, production companies, production equipment

13  resources, related businesses, and support services, including

14  the establishment of and expenditure for a program of

15  cooperative advertising with these public and private

16  organizations and groups in accordance with the provisions of

17  chapter 120.

18         5.  Provide and arrange for reasonable and necessary

19  promotional items and services for such persons as the office

20  deems proper in connection with the performance of the

21  promotional and other duties of the office.

22         Section 6.  Section 288.1255, Florida Statutes, is

23  created to read:

24         288.1255  Travel and entertainment expenses.--

25         (1)  As used in this section:

26         (a)  "Business client" means any person, other than a

27  state official or state employee, who receives the services

28  of, or is the subject of solicitation by, representatives of

29  the Office of the Entertainment Industry Commissioner in

30  connection with the performance of its statutory duties,

31  including persons or representatives of entertainment industry

                                  17

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  companies considering or being solicited for location,

  2  relocation, or expansion of an entertainment industry business

  3  within the state.

  4         (b)  "Entertainment expenses" means the actual,

  5  necessary, and reasonable costs of providing hospitality for

  6  business clients or guests, which costs are defined and

  7  prescribed by rules adopted by the Office of Tourism, Trade,

  8  and Economic Development, subject to approval by the

  9  Comptroller.

10         (c)  "Guest" means a person, other than a state

11  official or state employee, authorized by the Office of

12  Tourism, Trade, and Economic Development to receive the

13  hospitality of the Office of the Entertainment Industry

14  Commissioner in connection with the performance of its

15  statutory duties.

16         (d)  "Travel expenses" means the actual, necessary, and

17  reasonable costs of transportation, meals, lodging, and

18  incidental expenses normally incurred by a traveler, which

19  costs are defined and prescribed by rules adopted by the

20  Office of Tourism, Trade, and Economic Development, subject to

21  approval by the Comptroller.

22         (2)  Notwithstanding the provisions of s. 112.061, the

23  Office of Tourism, Trade, and Economic Development shall adopt

24  rules by which it may make expenditures by advancement or

25  reimbursement, or a combination thereof, to:

26         (a)  State officers and state employees for travel

27  expenses or entertainment expenses incurred by such officers

28  and employees in connection with the performance of the

29  statutory duties of the Office of the Entertainment Industry

30  Commissioner.

31

                                  18

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         (b)  State officers and state employees for travel

  2  expenses or entertainment expenses incurred by such officers

  3  and employees on behalf of guests, business clients, or

  4  authorized persons as defined in s. 112.061(2)(e) in

  5  connection with the performance of the statutory duties of the

  6  Office of the Entertainment Industry Commissioner.

  7         (c)  Third party vendors for the travel or

  8  entertainment expenses of guests, business clients, or

  9  authorized persons as defined in s. 112.061(2)(e) incurred

10  while such persons are participating in activities or events

11  carried out by the Office of the Entertainment Industry

12  Commissioner in connection with that office's statutory

13  duties.

14

15  The rules shall be subject to approval by the Comptroller

16  prior to promulgation.  The rules shall require the submission

17  of paid receipts, or other proof of expenditure prescribed by

18  the Comptroller, with any claim for reimbursement and shall

19  require, as a condition for any advancement of funds, an

20  agreement to submit paid receipts or other proof of

21  expenditure and to refund any unused portion of the

22  advancement within 15 days after the expense is incurred or,

23  if the advancement is made in connection with travel, within

24  10 working days after the traveler's return to headquarters.

25  However, with respect to an advancement of funds made solely

26  for travel expenses, the rules may allow paid receipts or

27  other proof of expenditure to be submitted, and any unused

28  portion of the advancement to be refunded, within 10 working

29  days after the traveler's return to headquarters. Operational

30  or promotional advancements, as defined in s. 288.35(4),

31

                                  19

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  obtained pursuant to this section shall not be commingled with

  2  any other state funds.

  3         (3)  The Office of Tourism, Trade, and Economic

  4  Development shall prepare an annual report of the expenditures

  5  of the Office of the Entertainment Industry Commissioner and

  6  provide such report to the Legislature no later than December

  7  30 of each year for the expenditures of the previous fiscal

  8  year. The report shall consist of a summary of all travel,

  9  entertainment, and incidental expenses incurred within the

10  United States and all travel, entertainment, and incidental

11  expenses incurred outside the United States.

12         (4)  The Office of the Entertainment Industry

13  Commissioner and its employees and representatives, when

14  authorized, may request, accept, and use complimentary travel,

15  accommodations, meeting space, meals, equipment,

16  transportation, and any other goods or services necessary for

17  or beneficial to the performance of the office's duties and

18  purposes, so long as such solicitation, acceptance, or use is

19  not in conflict with part III of chapter 112.  The Office of

20  Tourism, Trade, and Economic Development shall, by rule,

21  develop internal controls to ensure that such goods or

22  services requested, accepted, or used pursuant to this

23  subsection are limited to those which will assist in the

24  furtherance of the office's goals and are in compliance with

25  part III of chapter 112.

26         (5)  Any claim submitted under this section shall not

27  be required to be sworn to before a notary public or other

28  officer authorized to administer oaths, but any claim

29  authorized or required to be made under any provision of this

30  section shall contain a statement that the expenses were

31  actually incurred as necessary travel or entertainment

                                  20

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  expenses in the performance of official duties of the Office

  2  of the Entertainment Industry Commissioner and shall be

  3  verified by written declaration that it is true and correct as

  4  to every material matter.  Any person who willfully makes and

  5  subscribes to any claim which he or she does not believe to be

  6  true and correct as to every material matter or who willfully

  7  aids or assists in, procures, or counsels or advises with

  8  respect to, the preparation or presentation of a claim

  9  pursuant to this section that is fraudulent or false as to any

10  material matter, whether or not such falsity or fraud is with

11  the knowledge or consent of the person authorized or required

12  to present the claim, is guilty of a misdemeanor of the second

13  degree, punishable as provided in s. 775.082 or s. 775.083.

14  Whoever receives an advancement or reimbursement by means of a

15  false claim is civilly liable, in the amount of the

16  overpayment, for the reimbursement of the public fund from

17  which the claim was paid.

18         Section 7.  Section 288.1256, Florida Statutes, is

19  created to read:

20         288.1256  Florida Entertainment Industry Incentive

21  Grant Program.--

22         (1)  There is created the Florida Entertainment

23  Industry Incentive Grant Program within the Office of the

24  Entertainment Industry Commissioner.  The purpose of the grant

25  program shall be to encourage and assist entertainment

26  industry producers, as defined in this act, to select Florida

27  as their production location, to assist local communities in

28  attracting entertainment industry preproduction, production,

29  and postproduction activities to their areas, and to provide

30  educational scholarships and training program development

31

                                  21

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  funds to state postsecondary educational institutions for

  2  entertainment industry programs.

  3         (2)  For the purposes of this section, the definition

  4  of the term "Florida-based company" shall be developed by the

  5  Entertainment Industry Commissioner with the assistance of the

  6  Entertainment Florida Council prior to the implementation of

  7  the Florida Entertainment Industry Incentive Grant Program.

  8         (3)  The Office of the Entertainment Industry

  9  Commissioner shall develop grant criteria and award levels and

10  shall administer the distribution of grant funds under the

11  following categories:

12         (a)  Motion picture productions with budgets of at

13  least $1 million to be spent in the state, which have secured

14  completion bonds and distribution contracts, and that are

15  produced by Florida-based companies.

16         (b)  Television series or made-for-TV motion picture

17  productions to be produced in the state, which have secured

18  syndication or sale to a network, and which employ at least 60

19  percent Florida-based crew.

20         (c)  Commercial advertising productions with budgets of

21  at least $250,000 to be spent in the state and that are

22  produced by Florida-based companies.

23         (d)  Music sound recording productions to be produced

24  in the state by Florida-based companies.

25         (e)  Student scholarships for students enrolled in

26  entertainment industry production programs:

27         1.  At public colleges, universities, community

28  colleges, and vocational and technical schools in Florida

29  whose curriculums are approved by the Board of Regents.

30

31

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         2.  At private colleges and universities licensed by

  2  the State Board of Independent Colleges and Universities or

  3  holding a certificate of exemption under s. 246.085.

  4         3.  At postsecondary technical schools licensed by the

  5  State Board of Independent Postsecondary Vocational,

  6  Technical, Trade, and Business Schools.

  7         (f)  Community matching grants to assist Florida

  8  communities in attracting entertainment industry productions

  9  and in servicing productions.

10         (4)  Prior to the release of funds under this section,

11  any applicant for production-related grants shall provide

12  documentation to the satisfaction of the Office of the

13  Entertainment Industry Commissioner that:

14         (a)  The applicant has expended or will expend any

15  specifically required amounts, or if no amount is required,

16  has expended or will expend at least 85 percent of the

17  project's production budget within the state.

18         (b)  The applicant has a commitment for distribution

19  and exhibition.

20         (5)  The applicant's production-related project shall

21  provide such other documentation as may be required by the

22  council.

23         (6)  Grant applicants shall be qualified by the Office

24  of the Entertainment Industry Commissioner and approved by the

25  Office of Tourism, Trade, and Economic Development and the

26  Entertainment Florida Council.  Names of qualified

27  production-related applicants shall be put into a pool from

28  which at least one applicant from each category named in

29  paragraphs (3)(a)-(e) shall be drawn annually, at random, to

30  receive the grants, based upon availability of funds.

31

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  Previous applicants awarded grants under this paragraph shall

  2  not be eligible to apply for another grant for 2 years.

  3         Section 8.  Section 288.055, Florida Statutes, is

  4  renumbered as section 288.1257, Florida Statutes, and amended

  5  to read:

  6         288.1257 288.055  Florida Entertainment Industry

  7  Incentive Grant Program Film and Television Investment Trust

  8  Fund.

  9         (1)  There is created within the State Treasury the

10  Florida Entertainment Industry Incentive Grant Program Film

11  and Television Investment Trust Fund, from which money may be

12  expended for those grants awarded by the Office of the

13  Entertainment Industry Commissioner investments or loans, as

14  authorized by this act, to encourage and assist feature film

15  producers, television production companies, and distributors

16  to select Florida as their production location.

17         (2)  The trust fund may be the repository of funds

18  deposited by private and public sector sources investors, upon

19  such terms and conditions as agreed upon between investors and

20  the board.  In no way shall such trust funds be made

21  available, reappropriated, or transferred to the state's

22  General Revenue Fund.

23         (3)  The trust fund shall reach and maintain a balance

24  of no less than $1 million.  Initial grants may be awarded

25  from the trust fund from interest earned on the balance of $1

26  million or from any funds which exceed the balance of $1

27  million. The board is authorized to invest and make loans from

28  the Florida Film and Television Investment Trust Fund

29  individually or jointly under capital participation

30  arrangements with public and private sector investors in film

31  productions and television productions which select Florida as

                                  24

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  their production location.  Such investments or loans will be

  2  made under conditions required by law.

  3         (4)  In addition to the transfer of sales tax proceeds

  4  pursuant to the provisions of s. 212.20, the trust fund may

  5  receive contributions, gifts, grants, the proceeds of

  6  fundraising activities of the Entertainment Florida Council or

  7  its direct-support organization, and the proceeds from the

  8  creation of an entertainment industry specialty license plate.

  9  The board may invest trust funds in privately managed capital

10  funds in order to achieve the investment purposes contained in

11  this section.

12         (5)  In order for the trust fund to maintain a

13  sufficient pool of money, the board may disburse any profits

14  earned by investments of the board to private sector or public

15  investors as an inducement for such investors to maintain

16  their principal investment sum in the Florida Film and

17  Television Investment Trust Fund pool for such time and terms

18  as the board may determine by rule.

19         (6)  The trust fund will be funded primarily from

20  contributions, gifts, scholarships, grants, and fundraising

21  activities of the board and the Office of Tourism, Trade, and

22  Economic Development.  Additionally, the trust fund is

23  authorized to accept any contributions from the Legislature,

24  when so appropriated.

25         (7)  It is the intent of the Legislature that if any

26  one type of investment mechanism authorized in this act is

27  held to be invalid, all other mechanisms remain available.

28         (8)  The board may separate and categorize the state's

29  Film and Television Investment Trust Fund moneys to assure

30  that the board's investments and loans during each fiscal year

31

                                  25

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  are representative of film, television, major studios,

  2  mini-major studios, and independent production companies.

  3         (9)  Under no circumstance shall the credit of the

  4  state be pledged, other than moneys in the Film and Television

  5  Investment Trust Fund.

  6         Section 9.  Section 288.1258, Florida Statutes, is

  7  created to read:

  8         288.1258  Entertainment industry qualified production

  9  companies; application procedure; categories; duties of the

10  Department of Revenue.--

11         (1)(a)  Any production company engaged in this state in

12  the production of motion pictures, made-for-TV motion

13  pictures, television series, commercial advertising, music

14  videos, or music recordings, as they are defined in this act,

15  may submit an application to the Office of the Entertainment

16  Industry Commissioner to be approved as a qualified production

17  company for the purpose of receiving a sales and use tax

18  certificate of exemption from the Department of Revenue or for

19  applying for a sales and use tax refund.

20         (b)  For the purposes of this section, the term

21  "qualified production company" means any production company

22  that has submitted a properly completed application to the

23  Office of the Entertainment Industry Commissioner and is

24  subsequently qualified by that office.

25         (2)  APPLICATION PROCEDURE.--

26         (a)1.  The Office of the Entertainment Industry

27  Commissioner shall establish a process by which an

28  entertainment industry production company may be approved by

29  the office as a qualified production company and may receive a

30  certificate of exemption from the Department of Revenue for

31  the sales and use tax exemptions under ss. 212.031(1)(a)9.,

                                  26

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  212.06(1)(b), and 212.08(12)(a)3. and may be eligible to apply

  2  to the Department of Revenue for sales and use tax refunds

  3  under s. 212.08(12)(a)2.

  4         2.  Upon determination by the Office of the

  5  Entertainment Industry Commissioner that a production company

  6  meets the established approval criteria and qualifies for

  7  exemption, the Office of the Entertainment Industry

  8  Commissioner shall forward the approved application or

  9  application renewal or extension to the Department of Revenue,

10  which shall issue a certificate of exemption.

11         3.  The Office of the Entertainment Industry

12  Commissioner shall deny an application or application for

13  renewal or extension from a production company if it

14  determines that the production company does not meet the

15  established approval criteria.

16         (b)  The Office of the Entertainment Industry

17  Commissioner shall develop, with the cooperation of the

18  Department of Revenue and local government entertainment

19  industry promotion agencies, a standardized application form

20  for use in approving qualified production companies.

21         1.  The application form shall include, but not be

22  limited to, production-related information on employment,

23  proposed budgets, planned purchases of items exempted from

24  sales and use taxes under ss. 212.031(1)(a)9., 212.06(1)(b),

25  and 212.08(12)(a)3., a signed affirmation from the applicant

26  that any items purchased for which the applicant is seeking a

27  tax exemption are intended for use exclusively as an integral

28  part of entertainment industry preproduction, production or

29  postproduction activities engaged in primarily in this state,

30  and a signed affirmation from the Office of the Entertainment

31  Industry Commissioner that the information on the application

                                  27

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  form has been verified and is correct. In lieu of information

  2  on projected employment, proposed budgets, or planned

  3  purchases of exempted items, a production company seeking a

  4  1-year certificate of exemption may submit summary historical

  5  data on employment, production budgets, and purchases of

  6  exempted items related to production activities in this state.

  7  Any information gathered from production companies for the

  8  purposes of this section shall be considered confidential

  9  taxpayer information and shall be disclosed only as provided

10  in s. 213.053.

11         2.  The application form may be distributed to

12  applicants by the Office of the Entertainment Industry

13  Commissioner or local government entertainment industry

14  promotion agencies.

15         (c)  All applications, renewals, and extensions for

16  designation as a qualified production company shall be

17  processed by the Office of the Entertainment Industry

18  Commissioner.

19         (d)  In the event that the Department of Revenue

20  determines that a production company no longer qualifies for,

21  or has otherwise used, a certificate of exemption for purposes

22  other than those authorized by this section and chapter 212,

23  the Department of Revenue shall revoke the certificate of

24  exemption of that production company, and any sales or use

25  taxes exempted on items purchased or leased by the production

26  company during the time such company did not qualify for a

27  certificate of exemption or improperly used a certificate of

28  exemption, shall become immediately due to the Department of

29  Revenue, along with interest and penalty as provided by

30  section 212.12.  In addition to the other penalties imposed by

31  this part, any person who knowingly and willfully falsifies an

                                  28

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  application, or uses a certificate of exemption for purposes

  2  other than those authorized by this section and chapter 212,

  3  commits a felony of the third degree, punishable as provided

  4  in s. 775.082, s. 775.083, and s. 775.084.

  5         (e)  The Office of the Entertainment Industry

  6  Commissioner shall develop and periodically update, in

  7  cooperation with local government entertainment industry

  8  promotion agencies, entertainment industry representatives,

  9  and program directors of public postsecondary institutions

10  which house and operate entertainment industry production

11  facilities, a list of products and services commonly used by

12  entertainment industry producers in connection with

13  preproduction, production, and postproduction activities

14  described in this act and in s. 212.08(12)(b), which shall be

15  made available to production companies applying for

16  designation as a qualified production company.

17         (3)  CATEGORIES.--

18         (a)1.  A production company may be qualified for

19  designation as a qualified production company for a period of

20  1 year if the company has operated a business in Florida at a

21  permanent address for a period of 12 consecutive months.  Such

22  a qualified production company shall receive a single 1-year

23  certificate of exemption from the Department of Revenue for

24  the sales and use tax exemptions under ss. 212.031(1)(a)9.,

25  212.06(1)(b), and 212.08(12)(a)3., which certificate shall

26  expire 1 year after issuance or upon the cessation of business

27  operations in the state, at which time the certificate shall

28  be surrendered to the Department of Revenue.  Such a qualified

29  production company may also submit one application per

30  production for the sales and use tax refund under s.

31

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  212.08(12)(a)2. for the period of validity of the company's

  2  certificate of exemption.

  3         2.  The Office of the Entertainment Industry

  4  Commissioner shall develop a method by which a qualified

  5  production company may annually renew a 1-year certificate of

  6  exemption for a period of up to 5 years without requiring the

  7  production company to resubmit a new application during that

  8  5-year period.

  9         3.  Any qualified production company may submit a new

10  application for a 1-year certificate of exemption upon the

11  expiration of that company's certificate of exemption.

12         (b)1.  A production company may be qualified for

13  designation as a qualified production company for a period of

14  90-days. Such production company shall receive a single 90-day

15  certificate of exemption from the Department of Revenue for

16  the sales and use tax exemptions under ss. 212.031(1)(a)9.,

17  212.06(1)(b), and 212.08(12)(a)3., which certificate shall

18  expire 90 days after issuance, with extensions contingent upon

19  approval of the Office of the Entertainment Industry

20  Commissioner.  The certificate shall be surrendered to the

21  Department of Revenue upon its expiration.  Such a qualified

22  production company may also submit one application per

23  production for the sales and use tax refund under s.

24  212.08(12)(a)2. for the period of validity of the company's

25  certificate of exemption.

26         2.  Any production company may submit a new application

27  for a 90-day certificate of exemption upon the expiration of

28  that company's certificate of exemption.

29         (4)  DUTIES OF THE DEPARTMENT OF REVENUE.--

30         (a)  The Department of Revenue shall issue a numbered

31  certificate of exemption to a qualified production company

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  within 5 working days of the receipt of a properly completed

  2  and approved application, application renewal, or application

  3  extension from the Office of the Entertainment Industry

  4  Commissioner.

  5         (b)  The Department of Revenue shall promulgate such

  6  rules and shall prescribe and publish such forms as may be

  7  necessary to effectuate the purposes of this act or any of the

  8  sales tax exemptions which are reasonably related to the

  9  provisions of this act.

10         (c)  The Department of Revenue is authorized to

11  establish audit procedures in accordance with the provisions

12  of ss. 212.12 and 212.13 which relate to the sales tax

13  exemption provisions of this act.

14         Section 10.  Florida Entertainment Industry Model

15  Permitting Task Force; creation; membership; powers and

16  duties; report.--There is created within the Office of the

17  Entertainment Industry Commissioner, for a period of one year,

18  a task force for the purpose of developing a model for uniform

19  permits for use by state agencies and county and municipal

20  governments.

21         (1) Members of the task force shall be appointed by the

22  Governor no later than July 1, 1998, for a period of 1 year

23  and shall include one representative from each of the

24  following:

25         (a)  The Office of Tourism, Trade, and Economic

26  Development.

27         (b)  The Department of Environmental Protection.

28         (c)  The Division of Recreation and Parks of the

29  Department of Environmental Protection.

30         (d)  The Department of Transportation.

31         (e)  The Office of the State Fire Marshall.

                                  31

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         (f)  The Board of Regents.

  2         (g)  The Florida League of Cities.

  3         (h)  The Florida Association of Counties.

  4         (i)  The Department of Highway Safety and Motor

  5  Vehicles.

  6         (j)  The Division of Law Enforcement of the Department

  7  of Environmental Protection.

  8         (k)  The Department of Community Affairs.

  9         (l)  The Department of Corrections.

10         (m)  The Florida Film Commissioner's Association.

11         (n)  Each of the state's two largest motion-picture

12  production studios.

13         (o)  The Florida Motion Picture and Television

14  Association.

15         (p)  The recording industry.

16         (q)  The commercial advertising industry.

17         (2)  The task force shall meet as often as necessary to

18  develop a report which shall be given to the President of the

19  Senate and the Speaker of the House of Representatives no

20  later than June 30, 1999, which shall include:

21         (a)  A recommendation for model permits for use by

22  state agencies and county and municipal governments in

23  granting temporary permits to entertainment industry

24  businesses in the process of production activities.

25         (b)  Cost recommendations for use of state and local

26  government buildings, property, and personnel.

27         (c)  Recommendations for developing a timetable for

28  securing state and local environmental permits during the

29  preproduction and production stages of an entertainment

30  industry project.

31

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         (3)  The task force shall elect a chair who will set

  2  the meeting schedules for the task force.

  3         (4)  The Office of the Entertainment Industry

  4  Commissioner may provide staff assistance to the task force

  5  for the purpose of recording the minutes of each meeting.

  6         (5)  Members of the task force shall serve without

  7  compensation, but shall be entitled to reimbursement for per

  8  diem and travel expenses in accordance with s. 112.061 while

  9  in the performance of their duties.

10         Section 11.  Subsections (2) and (7) of section

11  14.2015, Florida Statutes, are amended to read:

12         14.2015  Office of Tourism, Trade, and Economic

13  Development; creation; powers and duties.--

14         (2)  The purpose of the Office of Tourism, Trade, and

15  Economic Development is to assist the Governor in working with

16  the Legislature, state agencies, business leaders, and

17  economic development professionals to formulate and implement

18  coherent and consistent policies and strategies designed to

19  provide economic opportunities for all Floridians.  To

20  accomplish such purposes, the Office of Tourism, Trade, and

21  Economic Development shall:

22         (a)  Contract, notwithstanding the provisions of part I

23  of chapter 287, with the direct-support organization created

24  under s. 288.1228, or a designated Florida not-for-profit

25  corporation whose board members have had prior experience in

26  promoting, throughout the state, the economic development of

27  the Florida motion picture, television, radio, video,

28  recording, and entertainment industries, to guide, stimulate,

29  and promote the entertainment industry in the state.

30         (a)(b)  Contract, notwithstanding the provisions of

31  part I of chapter 287, with the direct-support organization

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  created under s. 288.1229 to guide, stimulate, and promote the

  2  sports industry in the state.

  3         (b)(c)  Monitor the activities of public-private

  4  partnerships and state agencies in order to avoid duplication

  5  and promote coordinated and consistent implementation of

  6  programs in areas including, but not limited to, tourism;

  7  international trade and investment; business recruitment,

  8  creation, retention, and expansion; minority and small

  9  business development; and rural community development.

10         (c)(d)  Facilitate the direct involvement of the

11  Governor and the Lieutenant Governor in economic development

12  projects designed to create, expand, and retain Florida

13  businesses and to recruit worldwide business.

14         (d)(e)  Assist the Governor, in cooperation with

15  Enterprise Florida, Inc., and the Florida Commission on

16  Tourism, in preparing an annual report to the Legislature on

17  the state of the business climate in Florida and on the state

18  of economic development in Florida which will include the

19  identification of problems and the recommendation of

20  solutions.  This report shall be submitted to the President of

21  the Senate, the Speaker of the House of Representatives, the

22  Senate Minority Leader, and the House Minority Leader by

23  January 1 of each year, and it shall be in addition to the

24  Governor's message to the Legislature under the State

25  Constitution and any other economic reports required by law.

26         (e)(f)  Plan and conduct at least three meetings per

27  calendar year of leaders in business, government, and economic

28  development called by the Governor to address the business

29  climate in the state, develop a common vision for the economic

30  future of the state, and identify economic development efforts

31  to fulfill that vision.

                                  34

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         (f)(g)1.  Administer the Florida Enterprise Zone Act

  2  under ss. 290.001-290.016, the community contribution tax

  3  credit program under ss. 220.183 and 624.5105, the tax refund

  4  program for qualified target industry businesses under s.

  5  288.106, contracts for transportation projects under s.

  6  288.063, the sports franchise facility program under s.

  7  288.1162, the professional golf hall of fame facility program

  8  under s. 288.1168, the Florida Jobs Siting Act under ss.

  9  403.950-403.972, the Rural Community Development Revolving

10  Loan Fund under s. 288.065, the Regional Rural Development

11  Grants Program under s. 288.018, the Florida State Rural

12  Development Council, and the Rural Economic Development

13  Initiative.

14         2.  The office may enter into contracts in connection

15  with the fulfillment of its duties concerning the Florida

16  First Business Bond Pool under chapter 159, tax incentives

17  under chapters 212 and 220, foreign offices under chapter 288,

18  the Enterprise Zone program under chapter 290, the Seaport

19  Employment Training program under chapter 311, the Florida

20  Professional Sports Team License Plates under chapter 320,

21  Spaceport Florida under chapter 331, Job Siting and Expedited

22  Permitting under chapter 403, and in carrying out other

23  functions that are specifically assigned to the office by law.

24         (g)(h)  Serve as contract administrator for the state

25  with respect to contracts with Enterprise Florida, Inc., the

26  Florida Commission on Tourism, and all direct-support

27  organizations under this act, excluding those relating to

28  tourism.  To accomplish the provisions of this act and

29  applicable provisions of chapter 288, and notwithstanding the

30  provisions of part I of chapter 287, the office shall enter

31  into specific contracts with Enterprise Florida, Inc., the

                                  35

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  Florida Commission on Tourism, and other appropriate

  2  direct-support organizations. Such contracts may be multiyear

  3  and shall include specific performance measures for each year.

  4  The office shall provide the President of the Senate and the

  5  Speaker of the House of Representatives with a report by

  6  February 1 of each year on the status of these contracts,

  7  including the extent to which specific contract performance

  8  measures have been met by these contractors.

  9         (h)  Provide administrative oversight for the Office of

10  the Entertainment Industry Commissioner, created under s.

11  288.1254, to develop, promote, and provide services to the

12  state's entertainment industry and to administratively house

13  the Entertainment Florida Council created under s. 288.1252.

14         (i)  Prepare and submit as a separate budget entity a

15  unified budget request for tourism, trade, and economic

16  development in accordance with chapter 216 for, and in

17  conjunction with, Enterprise Florida, Inc., and its boards,

18  the Florida Commission on Tourism and its direct-support

19  organization, the Florida Black Business Investment Board, the

20  Office of the Entertainment Industry Commissioner, and the

21  direct-support organization organizations created to promote

22  the entertainment and sports industries.

23         (j)  Promulgate rules to carry out its functions in

24  connection with the administration of the Qualified Target

25  Industry program, the Qualified Defense Contractor program,

26  the Enterprise Zone program, and the Florida First Business

27  Bond pool.

28         (7)  The Office of Tourism, Trade, and Economic

29  Development shall develop performance measures, standards, and

30  sanctions for each program it administers under this act and,

31  in conjunction with the applicable entity, for each program

                                  36

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  for which it contracts with another entity under this act.

  2  The performance measures, standards, and sanctions shall be

  3  developed in consultation with the legislative appropriations

  4  committees and the appropriate substantive committees, and are

  5  subject to the review and approval process provided in s.

  6  216.177.  The approved performance measures, standards, and

  7  sanctions shall be included and made a part of each strategic

  8  plan or contract entered into for delivery of programs

  9  authorized by this act.

10         Section 12.  Effective January 1, 1999, paragraph (a)

11  of subsection (1) of section 212.031, Florida Statutes, is

12  amended to read:

13         212.031  Lease or rental of or license in real

14  property.--

15         (1)(a)  It is declared to be the legislative intent

16  that every person is exercising a taxable privilege who

17  engages in the business of renting, leasing, letting, or

18  granting a license for the use of any real property unless

19  such property is:

20         1.  Assessed as agricultural property under s. 193.461.

21         2.  Used exclusively as dwelling units.

22         3.  Property subject to tax on parking, docking, or

23  storage spaces under s. 212.03(6).

24         4.  Recreational property or the common elements of a

25  condominium when subject to a lease between the developer or

26  owner thereof and the condominium association in its own right

27  or as agent for the owners of individual condominium units or

28  the owners of individual condominium units. However, only the

29  lease payments on such property shall be exempt from the tax

30  imposed by this chapter, and any other use made by the owner

31

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  or the condominium association shall be fully taxable under

  2  this chapter.

  3         5.  A public or private street or right-of-way occupied

  4  or used by a utility for utility purposes.

  5         6.  A public street or road which is used for

  6  transportation purposes.

  7         7.  Property used at an airport exclusively for the

  8  purpose of aircraft landing or aircraft taxiing or property

  9  used by an airline for the purpose of loading or unloading

10  passengers or property onto or from aircraft or for fueling

11  aircraft.

12         8.a.  Property used at a port authority, as defined in

13  s. 315.02(2), exclusively for the purpose of oceangoing

14  vessels or tugs docking, or such vessels mooring on property

15  used by a port authority for the purpose of loading or

16  unloading passengers or cargo onto or from such a vessel, or

17  property used at a port authority for fueling such vessels, or

18  to the extent that the amount paid for the use of any property

19  at the port is based on the charge for the amount of tonnage

20  actually imported or exported through the port by a tenant.

21         b.  The amount charged for the use of any property at

22  the port in excess of the amount charged for tonnage actually

23  imported or exported shall remain subject to tax except as

24  provided in sub-subparagraph a.

25         9.  Property used as an integral part of the

26  preproduction, production, and postproduction activities by a

27  qualified production company as these terms are defined in s.

28  212.08(12).  This exemption will inure to the taxpayer upon

29  presentation of the certificate of exemption issued to the

30  taxpayer under the provisions of s. 288.1258. performance of

31  qualified production services.  As used in this subparagraph,

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  the term "qualified production services" means any activity or

  2  service performed directly in connection with the production

  3  of a qualified motion picture, as defined in s. 212.06(1)(b),

  4  and includes:

  5         a.  Photography, sound and recording, casting, location

  6  managing and scouting, shooting, creation of special and

  7  optical effects, animation, adaptation (language, media,

  8  electronic, or otherwise), technological modifications,

  9  computer graphics, set and stage support (such as

10  electricians, lighting designers and operators, greensmen,

11  prop managers and assistants, and grips), wardrobe (design,

12  preparation, and management), hair and makeup (design,

13  production, and application), performing (such as acting,

14  dancing, and playing), designing and executing stunts,

15  coaching, consulting, writing, scoring, composing,

16  choreographing, script supervising, directing, producing,

17  transmitting dailies, dubbing, mixing, editing, cutting,

18  looping, printing, processing, duplicating, storing, and

19  distributing;

20         b.  The design, planning, engineering, construction,

21  alteration, repair, and maintenance of real or personal

22  property including stages, sets, props, models, paintings, and

23  facilities principally required for the performance of those

24  services listed in sub-subparagraph a.; and

25         c.  Property management services directly related to

26  property used in connection with the services described in

27  sub-subparagraphs a. and b.

28         10.  Leased, subleased, or rented to a person providing

29  food and drink concessionaire services within the premises of

30  a movie theater, a business operated under a permit issued

31  pursuant to chapter 550, or any publicly owned arena, sports

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  stadium, convention hall, exhibition hall, auditorium, or

  2  recreational facility.  A person providing retail

  3  concessionaire services involving the sale of food and drink

  4  or other tangible personal property within the premises of an

  5  airport shall be subject to tax on the rental of real property

  6  used for that purpose, but shall not be subject to the tax on

  7  any license to use the property.  For purposes of this

  8  subparagraph, the term "sale" shall not include the leasing of

  9  tangible personal property.

10         11.  Property occupied pursuant to an instrument

11  calling for payments which the department has declared, in a

12  Technical Assistance Advisement issued on or before March 15,

13  1993, to be nontaxable pursuant to rule 12A-1.070(19)(c),

14  Florida Administrative Code; provided that this subparagraph

15  shall only apply to property occupied by the same person

16  before and after the execution of the subject instrument and

17  only to those payments made pursuant to such instrument,

18  exclusive of renewals and extensions thereof occurring after

19  March 15, 1993.

20         Section 13.  Effective January 1, 1999, paragraph (b)

21  of subsection (1) of section 212.06, Florida Statutes, is

22  amended to read:

23         212.06  Sales, storage, use tax; collectible from

24  dealers; "dealer" defined; dealers to collect from purchasers;

25  legislative intent as to scope of tax.--

26         (1)

27         (b)  Except as otherwise provided, any person who

28  manufactures, produces, compounds, processes, or fabricates in

29  any manner tangible personal property for his or her own use

30  shall pay a tax upon the cost of the product manufactured,

31  produced, compounded, processed, or fabricated without any

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  deduction therefrom on account of the cost of material used,

  2  labor or service costs, or transportation charges,

  3  notwithstanding the provisions of s. 212.02 defining "cost

  4  price."  However, the tax levied under this paragraph shall

  5  not be imposed upon any person who manufactures or produces

  6  electrical power or energy, steam energy, or other energy at a

  7  single location, when such power or energy is used directly

  8  and exclusively at such location, or at other locations if the

  9  energy is transferred through facilities of the owner in the

10  operation of machinery or equipment that is used to

11  manufacture, process, compound, produce, fabricate, or prepare

12  for shipment tangible personal property for sale or to operate

13  pollution control equipment, maintenance equipment, or

14  monitoring or control equipment used in such operations.  The

15  manufacture or production of electrical power or energy that

16  is used for space heating, lighting, office equipment, or

17  air-conditioning or any other nonmanufacturing, nonprocessing,

18  noncompounding, nonproducing, nonfabricating, or nonshipping

19  activity is taxable. Electrical power or energy consumed or

20  dissipated in the transmission or distribution of electrical

21  power or energy for resale is also not taxable.  Fabrication

22  labor shall not be taxable when a person is using his or her

23  own equipment and personnel, for his or her own account, as an

24  integral part of the preproduction, production, and post

25  production activities by a qualified production company as

26  these terms are defined in s. 212.08(12).  This exemption will

27  inure to the taxpayer upon presentation of the certificate of

28  exemption issued to the taxpayer under the provisions of s.

29  288.1258. a producer, subproducer, or coproducer of a

30  qualified motion picture.  For purposes of this chapter, the

31  term "qualified motion picture" means all or any part of a

                                  41

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  series of related images, either on film, tape, or other

  2  embodiment, including, but not limited to, all items

  3  comprising part of the original work and film-related products

  4  derived therefrom as well as duplicates and prints thereof and

  5  all sound recordings created to accompany a motion picture,

  6  which is produced, adapted, or altered for exploitation in,

  7  on, or through any medium or device and at any location,

  8  primarily for entertainment, commercial, industrial, or

  9  educational purposes. A person who manufactures factory-built

10  buildings for his or her own use in the performance of

11  contracts for the construction or improvement of real property

12  shall pay a tax only upon the person's cost price of items

13  used in the manufacture of such buildings.

14         Section 14.  Effective January 1, 1999, section

15  212.0602, Florida Statutes, is amended to read:

16         212.0602  Education; limited exemption.--To facilitate

17  investment in education and job training, there is also exempt

18  from the taxes levied under this chapter, subject to the

19  provisions of this section, the purchase or lease of

20  materials, equipment, real or personal property, and other

21  items by any entity, institution, or organization that is

22  primarily engaged in teaching students to perform any of the

23  activities or services described in s. 212.08(12)(b)

24  212.031(1)(a)9., that conducts classes at a fixed location

25  located in this state, that is licensed under chapter 246, and

26  that has at least 500 enrolled students.  Any entity,

27  institution, or organization meeting the requirements of this

28  section shall be deemed to qualify for the exemptions afforded

29  a qualified production company as defined in s. 212.08(12)(b)

30  in ss. 212.031(1)(a)9. and 212.08(5)(f) and (12), and to

31  qualify for an exemption for its purchase or lease of

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  materials, equipment, real or personal property and other

  2  items used for education or demonstration of the school's

  3  curriculum including supporting operations.  Nothing in this

  4  section shall preclude an entity described in this section

  5  from qualifying for any other exemption provided for in this

  6  chapter.

  7         Section 15.  Effective January 1, 1999, subsection (12)

  8  of section 212.08, Florida Statutes, is amended to read:

  9         212.08  Sales, rental, use, consumption, distribution,

10  and storage tax; specified exemptions.--The sale at retail,

11  the rental, the use, the consumption, the distribution, and

12  the storage to be used or consumed in this state of the

13  following are hereby specifically exempt from the tax imposed

14  by this chapter.

15         (12)  PARTIAL EXEMPTION; ENTERTAINMENT INDUSTRY

16  PRODUCTION SERVICES, EQUIPMENT, MASTER TAPES, RECORDS, FILMS,

17  OR VIDEO TAPES.--

18         (a)  There are exempt from the taxes imposed by this

19  chapter:

20         1.  The gross receipts from the sale or lease of, and

21  the storage, use, or other consumption in this state of,

22  master tapes or master records embodying sound, or master

23  films or master video tapes; except that amounts paid to

24  recording studios or motion picture or television studios for

25  the tangible elements of such master tapes, records, films, or

26  video tapes are taxable as otherwise provided in this chapter.

27  This exemption will inure to the taxpayer upon presentation of

28  the certificate of exemption issued to the taxpayer under the

29  provisions of s. 288.1258.

30         2.a.  Thirty percent of the gross receipts from the

31  sale or lease of, and the storage, use, or other consumption

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  in this state of all items and services subject to sales and

  2  use tax under the provisions of chapter 212 by an

  3  entertainment industry qualified production company as defined

  4  in this subsection in connection with preproduction,

  5  production, and postproduction activities in this state by the

  6  production company during the time period for which the

  7  company holds a valid certificate of exemption issued to the

  8  taxpayer under the provisions of s. 288.1258.  The amount of

  9  sales and use tax available to be refunded under this

10  paragraph shall not exceed $100,000 per production.

11         b.  The exemption provided by this subparagraph shall

12  inure to the taxpayer only through a refund of previously paid

13  taxes.  A refund shall be authorized upon an affirmative

14  showing by the taxpayer to the satisfaction of the Department

15  of Revenue that the requirements of this paragraph have been

16  met.  Refunds of taxes paid may only be made on sales and use

17  tax paid pursuant to the rate specified in s. 212.06(1)(a),

18  and shall not include any local discretionary taxes or fees.

19         c.  To apply for the refund, the qualified production

20  company shall submit to the Department of Revenue an

21  application for refund which includes a copy of the

22  certificate of exemption issued to the taxpayer under the

23  provisions of s. 288.1258, dealer receipts, invoices, and any

24  documents evidencing all purchases or leases for which the

25  exemption is claimed, which shall include the date and total

26  amount of sales and use tax paid or accrued pursuant to s.

27  212.183, and a copy of related production accounting reports

28  compiled by the production company for the producer.

29  Notwithstanding the provisions of s. 212.095, such refund

30  shall be made within 30 days of receipt of a formal

31

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  application, which application shall be made within 6 months

  2  after the completion of production activities.

  3         3.  The gross receipts from the sale or lease of, and

  4  the storage, use, or other consumption of motion picture or

  5  video and sound recording equipment used as an integral part

  6  of production or postproduction activities in this state by a

  7  qualified production company as defined in this subsection.

  8  This exemption shall inure to the taxpayer upon presentation

  9  by the purchaser or lessee to the vendor of the certificate of

10  exemption issued to the taxpayer under the provisions of s.

11  288.1258.  For the purpose of the exemption provided in this

12  subparagraph, entertainment industry equipment shall be

13  categorized as belonging to one of the following five groups

14  and shall be itemized by type on a list annually compiled and

15  published no later than September 1, by the Office of the

16  Entertainment Industry Commissioner created under s. 288.1254:

17         a.  Production cameras, lenses, and camera accessory

18  equipment.

19         b.  Production lighting and grip equipment.

20         c.  Production audio or video recording and playback

21  equipment.

22         d.  Postproduction editing equipment and special

23  effects programs and digitizing equipment.

24         e.  Animation and related computer equipment, computer

25  programs, audio and video recording and playback equipment,

26  and specialized artist workstations.

27         (b)  For the purposes of this subsection, the term:

28         1.  "Amounts paid for the tangible elements" does not

29  include any amounts paid for the copyrightable, artistic, or

30  other intangible elements of such master tapes, records,

31  films, or video tapes, whether designated as royalties or

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  otherwise., including, but not limited to, services rendered

  2  in producing, fabricating, processing, or imprinting tangible

  3  personal property or any other services or production expenses

  4  in connection therewith which may otherwise be construed as

  5  constituting a "sale" under s. 212.02.

  6         2.  "Master films or master video tapes" means films or

  7  video tapes utilized by the motion picture and television

  8  production industries in making visual images for

  9  reproduction.

10         3.  "Master tapes or master records embodying sound"

11  means tapes, records, and other devices utilized by the

12  recording industry in making recordings embodying sound.

13         4.  "Motion picture or television studio" means a

14  facility in which film or video tape productions or parts of

15  productions are made and which contains the necessary

16  equipment and personnel for this purpose and includes a mobile

17  unit or vehicle that is equipped in much the same manner as a

18  stationary studio and used in the making of film or video tape

19  productions.

20         5.  "Recording studio" means a place where, by means of

21  mechanical or electronic devices, voices, music, or other

22  sounds are transmitted to tapes, records, or other devices

23  capable of reproducing sound.

24         6.  "Recording industry" means any person engaged in an

25  occupation or business of making recordings embodying sound

26  for a livelihood or for a profit.

27         7.  "Sound recording" means a recording of voices,

28  music, or other sounds by mechanical or electronic

29  transmission to tapes, records, or other devices capable of

30  storing and reproducing sound.

31

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         7.  "Motion picture or television production industry"

  2  means any person engaged in an occupation or business for a

  3  livelihood or for profit of making visual motion picture or

  4  television visual images for showing on screen or television

  5  for theatrical, commercial, advertising, or educational

  6  purposes.

  7         8.  "Music video production" means a cohesive

  8  compilation of motion pictures with a specific sound recording

  9  product for the purpose of broadcasting on a music television

10  network or commercial distribution.

11         9.  "Motion picture" means any live-action or animated

12  feature-length or short-subject audiovisual work at any stage

13  of the production, consisting of a series of related images,

14  either on film, tape, or other embodiment, including, but not

15  limited to, all items comprising part of the work and

16  film-related products derived therefrom as well as duplicates

17  and prints thereof and all sound recordings created to

18  accompany a motion picture, which is produced, adapted, or

19  altered for exploitation in, on, or through any medium or

20  device and at any location, primarily for entertainment,

21  commercial, industrial, or educational purposes.

22         10.  "Commercial advertising production" means any

23  film, video, audio, or photographic production that is created

24  to promote statewide, nationally, or internationally specific

25  brands, products, services, retailers, or advocacy positions

26  for commercial purposes.

27         11.  "Production" means any production, or any part

28  thereof, of motion pictures, made-for-TV motion pictures,

29  television series, commercial advertising, music videos, or

30  sound recordings as defined in this subsection.

31

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         12.  "Preproduction activities" means those preliminary

  2  activities performed directly in connection with the

  3  production, or any part thereof, of a motion picture,

  4  made-for-TV motion picture, television series, commercial

  5  advertising production, music video, or sound recording, which

  6  include, but are not limited to, obtaining story rights,

  7  script writing, story boarding, budgeting, scheduling, and

  8  assembling the financing, producers, director, and prime

  9  talent.

10         13.  "Production activities" means those activities

11  performed directly in connection with the production, or any

12  part thereof, of a motion picture, made-for-TV motion picture,

13  television series, commercial advertising production, music

14  video, or sound recording which include, but are not limited

15  to, location scouting and managing, set construction and

16  acquisition, props acquisition, wardrobe construction and

17  acquisition, hair and makeup design and execution,

18  cinematography, photography, videography, sound recording, and

19  personnel travel and meal acquisition and related activities.

20         14.  "Postproduction activities" means those activities

21  performed directly in connection with transforming the

22  individual images and sounds recorded during production into a

23  cohesive body, which include, but are not limited to, editing,

24  dubbing, creating supplementary soundtracks, automated

25  dialogue replacement, foley stage recording, sound mixing,

26  creating special effects, two-dimensional and

27  three-dimensional graphics and animation, and creating credit

28  titles.

29         15.  "Qualified production company" means any

30  production company that causes to be made a motion picture,

31  made-for-TV motion picture, television series, commercial

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  advertising, music video, or sound recording, or any part

  2  thereof, primarily for entertainment, commercial, industrial,

  3  or educational purposes and that has submitted a properly

  4  completed application to the Office of the Entertainment

  5  Industry Commissioner and is subsequently qualified by that

  6  office.

  7         16.  "Entertainment industry" means any person engaged

  8  in the operation of motion picture or television studios or

  9  recording studios, or any person engaged in the production of

10  motion pictures, made-for-TV motion pictures, television

11  series, commercial advertising, music videos, or sound

12  recordings.

13         (c)  The Office of the Entertainment Industry

14  Commissioner shall keep annual records from the information

15  provided on taxpayer applications for tax exemption

16  certificates beginning with the effective date of the tax

17  exemptions provided by this subsection.  These records shall

18  reflect a percentage comparison of the annual amount of funds

19  exempted to the estimated amount of funds expended in relation

20  to entertainment industry products, and shall keep data

21  showing annual growth in Florida-based entertainment industry

22  companies and entertainment industry employment and wages.

23  The Office of the Entertainment Industry Commissioner shall

24  report this information to the Legislature by no later than

25  December 1 of each year.

26         (d)  This subsection shall be repealed October 1, 2008,

27  subject to a review to be completed by the Legislature prior

28  to the conclusion of the 2008 Regular Session of the

29  Legislature.

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1         Section 16.  Effective January 1, 1999, paragraph (f)

  2  of subsection (6) of section 212.20, Florida Statutes, is

  3  amended to read:

  4         212.20  Funds collected, disposition; additional powers

  5  of department; operation expense; refund of taxes adjudicated

  6  unconstitutionally collected.--

  7         (6)  Distribution of all proceeds under this part shall

  8  be as follows:

  9         (f)  The proceeds of all other taxes and fees imposed

10  pursuant to this chapter shall be distributed as follows:

11         1.  In any fiscal year, the greater of $500 million,

12  minus an amount equal to 4.6 percent of the proceeds of the

13  taxes collected pursuant to chapter 201, or 5 percent of all

14  other taxes and fees imposed pursuant to this chapter shall be

15  deposited in monthly installments into the General Revenue

16  Fund.

17         2.  Two-tenths of one percent shall be transferred to

18  the Solid Waste Management Trust Fund.

19         3.  After the distribution under subparagraphs 1. and

20  2., 9.653 percent of the amount remitted by a sales tax dealer

21  located within a participating county pursuant to s. 218.61

22  shall be transferred into the Local Government Half-cent Sales

23  Tax Clearing Trust Fund.

24         4.  After the distribution under subparagraphs 1., 2.,

25  and 3., 0.054 percent shall be transferred to the Local

26  Government Half-cent Sales Tax Clearing Trust Fund and

27  distributed pursuant to s. 218.65.

28         5.  After the distribution under subparagraphs 1., 2.,

29  3., and 4., an amount equal to 20 percent of the total sales

30  taxes before any refunds are disbursed, paid by qualified

31  production companies, as reported to the Department of Revenue

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  under the provisions of s. 212.08(12)(a)2., shall be

  2  transferred to the Entertainment Industry Grant Program Trust

  3  Fund.

  4         6.5.  Of the remaining proceeds:

  5         a.  Beginning July 1, 1992, $166,667 shall be

  6  distributed monthly by the department to each applicant that

  7  has been certified as a "facility for a new professional

  8  sports franchise" or a "facility for a retained professional

  9  sports franchise" pursuant to s. 288.1162 and $41,667 shall be

10  distributed monthly by the department to each applicant that

11  has been certified as a "new spring training franchise

12  facility" pursuant to s. 288.1162. Distributions shall begin

13  60 days following such certification and shall continue for 30

14  years. Nothing contained herein shall be construed to allow an

15  applicant certified pursuant to s. 288.1162 to receive more in

16  distributions than actually expended by the applicant for the

17  public purposes provided for in s. 288.1162(7). However, a

18  certified applicant shall receive distributions up to the

19  maximum amount allowable and undistributed under this section

20  for additional renovations and improvements to the facility

21  for the franchise without additional certification.

22         b.  Beginning 30 days after notice by the Office of

23  Tourism, Trade, and Economic Development to the Department of

24  Revenue that an applicant has been certified as the

25  professional golf hall of fame pursuant to s. 288.1168 and is

26  open to the public, $166,667 shall be distributed monthly, for

27  up to 300 months, to the applicant.

28         c.  Beginning 30 days after notice by the Department of

29  Commerce to the Department of Revenue that the applicant has

30  been certified as the International Game Fish Association

31  World Center facility pursuant to s. 288.1169, and the

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  facility is open to the public, $83,333 shall be distributed

  2  monthly, for up to 180 months, to the applicant.  This

  3  distribution is subject to reduction pursuant to s. 288.1169.

  4         7.6.  All other proceeds shall remain with the General

  5  Revenue Fund.

  6         Section 17.  Paragraph (o) is added to subsection (7)

  7  of s. 213.053, F.S., to read:

  8         213.053  Confidentiality and information sharing.--

  9         (7)  Notwithstanding any other provision of this

10  section, the department may provide:

11         (o)  Information relative to the tax exemptions under

12  ss. 212.031(1)(a)9., 212.06(1)(b), and 212.08(12)(a)2. and 3.

13  to the Office of the Entertainment Industry Commissioner. The

14  Department of Revenue shall provide the Office of the

15  Entertainment Industry Commissioner with information in the

16  aggregate on the number of refunds applied for, the number

17  granted, the amount of production expenditures as provided in

18  s. 212.08(12)(a)2., labor and wages information, and the

19  amount of the refunds.

20

21  Disclosure of information under this subsection shall be

22  pursuant to a written agreement between the executive director

23  and the agency. Such agencies, governmental or

24  nongovernmental, shall be bound by the same requirements of

25  confidentiality as the Department of Revenue. Breach of

26  confidentiality is a misdemeanor of the first degree,

27  punishable as provided by s. 775.082 or s. 775.083.

28         Section 18.  Effective January 1, 1999, section

29  212.0602, Florida Statutes, is amended to read:

30         212.0602  Education; limited exemption.--To facilitate

31  investment in education and job training, there is also exempt

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  from the taxes levied under this chapter, subject to the

  2  provisions of this section, the purchase or lease of

  3  materials, equipment, and other items by any entity,

  4  institution, or organization that is primarily engaged in

  5  teaching students to perform any of the activities or services

  6  described in s. 212.031(1)(a)9., that conducts classes at a

  7  fixed location located in this state, that is licensed under

  8  chapter 246, and that has at least 500 enrolled students.  Any

  9  entity, institution, or organization meeting the requirements

10  of this section shall be deemed to qualify for the exemptions

11  in ss. 212.031(1)(a)9. and 212.08(5)(f) and (12), and to

12  qualify for an exemption for its purchase or lease of

13  materials, equipment, and other items used for education or

14  demonstration of the school's curriculum.  Nothing in this

15  section shall preclude an entity described in this section

16  from qualifying for any other exemption provided for in this

17  chapter.

18         Section 19.  Paragraph (e) of subsection (6) of section

19  288.108, Florida Statutes, is amended to read:

20         288.108  High-impact business.--

21         (6)  SELECTION AND DESIGNATION OF HIGH-IMPACT

22  SECTORS.--

23         (e)  The study and its findings and recommendations and

24  the recommendations gathered from the sector-business network

25  must be discussed and considered during at least one of the

26  quarterly meetings required in s. 14.2015(2)(g)(h).

27         Section 20.  Subsection (7) of section 288.90152,

28  Florida Statutes, is amended to read:

29         288.90152  Pilot matching grant program.--

30         (7)  Upon completing all training funded under this

31  pilot program, the Office of Tourism, Trade, and Economic

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1  Development shall report on the outputs and outcomes for this

  2  program as part of the annual report prepared under s.

  3  14.2015(2)(f)(g). Such report must include a recommendation on

  4  whether it would be sound public policy to continue or

  5  discontinue funding for the program.

  6         Section 21.  Effective January 1, 1999, paragraph (f)

  7  of subsection (5) of section 212.08, Florida Statutes, is

  8  repealed.

  9         Section 22.  Sections 288.051, 288.052, 288.053,

10  288.054, 288.056, 288.057, 288.1228, and 288.12285, Florida

11  Statutes, are repealed.

12         Section 23.  Except as otherwise provided in this act,

13  this act shall take effect upon becoming law.

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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1            *****************************************

  2                       LEGISLATIVE SUMMARY

  3
      Creates the "Florida Entertainment Industry Growth Act."
  4    Defines terms for purposes of the act.

  5
      Creates the Entertainment Florida Council within the
  6    Office of Tourism, Trade, and Economic Development of the
      Executive Office of the Governor for the purpose of
  7    providing industry insight and expertise related to
      developing, promoting, and providing service to the
  8    state's entertainment industry and providing private
      sector supplemental financial support to the programs of
  9    the Office of the Entertainment Industry Commissioner, as
      created by the act. Provides for membership, terms,
10    organization, and powers and duties of the council.

11
      Creates the Office of Entertainment Industry Commissioner
12    within the Office of Tourism, Trade, and Economic
      Development for the purpose of developing, promoting, and
13    providing services to the state's entertainment industry.
      Provides procedure for the appointment of the
14    Entertainment Industry Commissioner. Provides powers and
      duties of the office.
15

16    Requires the Office of Tourism, Trade, and Economic
      Development to adopt rules by which it may make specified
17    expenditures for expenses incurred in connection with the
      performance of the duties of the Office of the
18    Entertainment Industry Commissioner. Requires approval of
      such rules by the Comptroller. Requires an annual report.
19    Authorizes the solicitation, acceptance, and use of
      specified goods and services by employees and
20    representatives of the Office of the Entertainment
      Industry Commissioner relative to the performance of the
21    duties of the office. Provides certain requirements with
      respect to claims for expenses. Provides a second-degree
22    misdemeanor penalty for false or fraudulent claims, and
      provides for civil liability.
23

24    Creates the Florida Entertainment Industry Incentive
      Grant Program within the Office of the Entertainment
25    Industry Commissioner for the purpose of encouraging and
      assisting entertainment industry producers to select
26    Florida as a production location and to provide
      educational scholarships and training program development
27    funds to state postsecondary educational institutions.
      Provides for the development of grant criteria. Provides
28    for the administration and distribution of grant funds.

29
      Redesignates the Florida Film and Television Investment
30    Trust Fund as the Florida Entertainment Industry
      Incentive Grant Program Trust Fund. Provides for use of
31    trust fund moneys for the award of grants by the Office
      of the Entertainment Industry Commissioner. Requires the
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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1    maintenance of a specified trust fund balance. Specifies
      funds from which initial grants may be awarded. Specifies
  2    sources from which the trust fund may receive moneys.

  3
      Authorizes application for approval by the Office of the
  4    Entertainment Industry Commissioner as a qualified
      production company for purposes of receiving specified
  5    sales tax exemptions and refunds. Provides application
      procedure. Provides for revocation of a certificate of
  6    exemption. Provides a third-degree felony penalty for
      falsification or unauthorized use of an application for
  7    certificate of exemption. Establishes categories of
      qualification for a certificate of exemption. Provides
  8    duties of the Department of Revenue with respect to sales
      tax exemptions to qualified production companies.
  9

10    Creates the Florida Entertainment Industry Model
      Permitting Task Force for the purpose of developing a
11    model for uniform permits for use by state agencies and
      county and municipal governments.
12

13    Revises purposes of the Office of Tourism, Trade, and
      Economic Development of the Executive Office of the
14    Governor with respect to the promotion of the
      entertainment industry within the state. Charges the
15    Office of Tourism, Trade, and Economic Development with
      administrative oversight of the Office of the
16    Entertainment Industry Commissioner.

17
      Revises various provisions of the tax code as follows:
18         1.  Revises language with respect to property used
      as an integral part of the performance of qualified
19    production services for purposes of the lease or rental
      of or license in real property.
20         2.  With respect to the tax on sales, use, and other
      transactions, revises language with respect to the
21    exemption for fabrication labor used in the production of
      a qualified motion picture.
22         3.  Revises the partial exemption from the tax on
      sales, use, and other transactions for master tapes,
23    records, films, or video tapes to include entertainment
      industry production services and equipment within the
24    exemption. Sets the rate of the exemption at 30 percent
      of the gross receipts on all items and services subject
25    to the sales tax by a qualified production company in
      connection with production activities in this state for
26    which the company holds a valid certificate of exemption;
      and the gross receipts applicable to motion picture or
27    video and sound recording equipment used as an integral
      part of production activities in this state by a
28    qualified production company. Provides a limit on refund
      of taxes of $100,000 per production. Provides for repeal
29    of the exemptions on October 1, 2008, and for review of
      the exemptions by the Legislature prior to that date.
30         4.  Provides for the distribution of specified tax
      proceeds to the Entertainment Industry Grant Program
31    Trust Fund.
           5.  Repeals the exemption from the tax on sales,
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    Florida Senate - 1998                                  SB 1612
    24-1320-98                                              See HB




  1    use, and other transactions for specified motion picture
      or video equipment, and specified sound recording
  2    equipment, effective January 1, 1999.

  3
      Repeals various provisions of chapter 288, F.S., relating
  4    to the Florida Film and Television Investment Act and the
      Florida Film and Television Investment Board, to conform.
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