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                                                  SENATE AMENDMENT

    Bill No. HB 2073, 2nd Eng.

    Amendment No.    

                            CHAMBER ACTION
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11  Senator Kirkpatrick moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         Delete everything after the enacting clause

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16  and insert:

17         Section 1.  Twenty-first Century Digital Television and

18  Education Act.--

19         (1)  Short title.--This act may be cited as the "21st

20  Century Digital Television and Education Act."

21         (2)  Legislative findings and intent.--The Legislature

22  finds that the federally mandated transition from analog to

23  digital television will provide numerous new, improved, and

24  innovative information and entertainment services to the

25  public. The Legislature further finds that, whereas all

26  commercial and noncommercial television markets in the United

27  States must begin digital broadcasts by no later than May,

28  2003, it is in the interest of the state to facilitate the

29  conversion of existing television stations, studios, networks,

30  and production companies to digital technology as well as to

31  encourage new companies involved in digital television and

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                                                  SENATE AMENDMENT

    Bill No. HB 2073, 2nd Eng.

    Amendment No.    





 1  related industries to locate in Florida. It is therefore the

 2  intent of the Legislature to investigate and create the

 3  economic incentives and educational opportunities necessary to

 4  position Florida as a 21st century leader in the production,

 5  transmission, manufacturing, and research and development of

 6  digital television and related digital communication.

 7         (3)  Task force; membership; duties.--

 8         (a)  The "21st Century Digital Television and Education

 9  Task Force" is hereby created to serve through February 1,

10  2000. The task force is created within the Office of Tourism,

11  Trade, and Economic Development, which shall provide staff

12  support for the activities of the task force.  The task force

13  shall consist of the following members:

14         1.  Two members to be appointed by the Governor.

15         2.  Two members of the Senate, or their designees, to

16  be appointed by the President of the Senate.

17         3.  Two members of the House of Representatives, or

18  their designees, to be appointed by the Speaker of the House

19  of Representatives.

20         4.  The Commissioner of Education or the commissioner's

21  designee.

22         5.  The Chancellor of the State University System or

23  the chancellor's designee.

24         6.  The Executive Director of the State Community

25  College System or the executive director's designee.

26         7.  The President of the Independent Colleges and

27  Universities of Florida or the president's designee.

28         (b)  Each appointed member of the task force shall

29  serve at the pleasure of the appointing official. A vacancy on

30  the task force shall be filled in the same manner as the

31  original appointment.

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                                                  SENATE AMENDMENT

    Bill No. HB 2073, 2nd Eng.

    Amendment No.    





 1         (c)  The task force shall elect a chair from among its

 2  members. A vacancy in the chair of the task force must be

 3  filled for the remainder of the unexpired term by an election

 4  of the task force members.

 5         (d)  The task force shall meet as necessary, at the

 6  call of the chair or at the call of a quorum of the task

 7  force, and at the time and place designated by the chair. A

 8  quorum is necessary for the purpose of conducting official

 9  business of the task force. Six members of the task force

10  shall constitute a quorum. The task force shall use accepted

11  rules of procedure to conduct its meetings and shall keep a

12  complete record of each meeting.

13         (e)  Members of the task force shall receive no

14  compensation for their services, but shall be entitled to

15  receive per diem and travel expenses as provided in s.

16  112.061, Florida Statutes.

17         (f)  The Task Force shall act as an advisory body and

18  shall make recommendations to the Governor and the Legislature

19  on a coordinated plan to carry out the legislative intent of

20  this act. The task force shall have the following duties:

21         1.  Devise a plan to recruit the following industry

22  segments to locate in Florida:

23         a.  Digital programmers and producers, including

24  companies involved in the production, marketing, and

25  development of digital content, as well as studios, networks,

26  and television stations.

27         b.  Companies involved in the transmission of digital

28  media, including television broadcasters, cable and satellite

29  companies, television, theater, and film industry members,

30  Internet content providers, web site producers, and other

31  information service providers.

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                                                  SENATE AMENDMENT

    Bill No. HB 2073, 2nd Eng.

    Amendment No.    





 1         c.  Digital television equipment manufacturers,

 2  including makers of digital video cameras, audio equipment,

 3  transmission equipment, television sets, set-top boxes and

 4  related hardware, monitors, displays, tapes, and discs.

 5         d.  Companies involved in the research and development

 6  of new and innovative digital television equipment, consumer

 7  electronics, prototypes, and products.

 8         2.  Investigate and recommend strong economic

 9  incentives to encourage the digital industry segments

10  described in subparagraph 1. to locate and compete in Florida.

11  Special emphasis should be given to stimulating economic

12  development in both rural areas and urban areas of critical

13  need.

14         3.  Devise a plan to create and maintain higher

15  education opportunities for students wishing to enter the

16  digital television field. At minimum, the plan shall consider

17  and address the following:

18         a.  The extent to which higher education opportunities

19  are currently available to students in the areas of digital

20  production, transmission, manufacturing, and research and

21  development.

22         b.  The workforce needs of the digital television

23  industry segments described in subparagraph 1.

24         c.  Recommendations and an operational plan for

25  creating and maintaining higher education opportunities in

26  digital television production, transmission, manufacturing,

27  and research and development.

28         d.  Any other recommendations to encourage and promote

29  the development of a skilled workforce in digital broadcast

30  communications and high-definition television.

31         4.  Recommend methods to hasten the conversion of

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                                                  SENATE AMENDMENT

    Bill No. HB 2073, 2nd Eng.

    Amendment No.    





 1  existing commercial television studios and soundstages from

 2  analog to digital technology.

 3         5.  Recommend a means to fund the cost of converting

 4  public broadcast stations from analog to digital technology,

 5  including a grant program for Florida Public Television.

 6         6.  Issue a report to the Legislature no later than

 7  February 1, 2000, summarizing its findings, stating its

 8  conclusions, and proposing its recommendations.

 9         Section 2.  Paragraph (f) of subsection (5) of section

10  212.08, Florida Statutes, 1998 Supplement, is amended to read:

11         212.08  Sales, rental, use, consumption, distribution,

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

13  the rental, the use, the consumption, the distribution, and

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

15  following are hereby specifically exempt from the tax imposed

16  by this chapter.

17         (5)  EXEMPTIONS; ACCOUNT OF USE.--

18         (f)  Motion picture or video equipment used in motion

19  picture or television production activities and sound

20  recording equipment used in the production of master tapes and

21  master records; certain machinery or equipment purchased or

22  leased to produce, originate, or broadcast digital television

23  signals.--

24         1.  Motion picture or video equipment and sound

25  recording equipment purchased or leased for use in this state

26  in production activities is exempt from the tax imposed by

27  this chapter upon an affirmative showing by the purchaser or

28  lessee to the satisfaction of the department that the

29  equipment will be used for production activities.

30         2.  There is exempt from the tax imposed by this

31  chapter all machinery or equipment purchased or leased in this

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                                                  SENATE AMENDMENT

    Bill No. HB 2073, 2nd Eng.

    Amendment No.    





 1  state for use by a television studio, television network,

 2  television production company, or federally licensed

 3  television station in the production, origination, or

 4  broadcast of digital television signals.

 5         3.  The exemptions exemption provided by this paragraph

 6  shall inure to the taxpayer only through a refund of

 7  previously paid taxes. Notwithstanding the provisions of s.

 8  212.095, such refund shall be made within 30 days of formal

 9  application, which application may be made after the

10  completion of production activities or on a quarterly basis

11  with respect to the refund authorized under subparagraph 1.,

12  and on a quarterly basis with respect to the refund authorized

13  under subparagraph 2. Notwithstanding the provisions of

14  chapter 213, the department shall provide the Office of

15  Tourism, Trade, and Economic Development Department of

16  Commerce with a copy of each refund application and the amount

17  of such refund, if any.

18         4.2.  For the purpose of the exemption provided in

19  subparagraph 1.:

20         a.  "Motion picture or video equipment" and "sound

21  recording equipment" includes only equipment meeting the

22  definition of "section 38 property" as defined in s.

23  48(a)(1)(A) and (B)(i) of the Internal Revenue Code that is

24  used by the lessee or purchaser exclusively as an integral

25  part of production activities; however, motion picture or

26  video equipment and sound recording equipment does not include

27  supplies, tape, records, film, or video tape used in

28  productions or other similar items; vehicles or vessels; or

29  general office equipment not specifically suited to production

30  activities.  In addition, the term does not include equipment

31  purchased or leased by television or radio broadcasting or

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                                                  SENATE AMENDMENT

    Bill No. HB 2073, 2nd Eng.

    Amendment No.    





 1  cable companies licensed by the Federal Communications

 2  Commission.

 3         b.  "Production activities" means activities directed

 4  toward the preparation of a:

 5         (I)  Master tape or master record embodying sound; or

 6         (II)  Motion picture or television production which is

 7  produced for theatrical, commercial, advertising, or

 8  educational purposes and utilizes live or animated actions or

 9  a combination of live and animated actions. The motion picture

10  or television production shall be commercially produced for

11  sale or for showing on screens or broadcasting on television

12  and may be on film or video tape.

13         5.  For the purpose of the exemption provided in

14  subparagraph 2., the term "machinery or equipment" means

15  machinery or equipment as described in 47 C.F.R., part 73, or

16  "section 38 property" as defined in s. 48(a)(1)(A) and (B)(i)

17  of the Internal Revenue Code, purchased or leased in this

18  state for use by a television studio, television network,

19  television production company, or federally licensed

20  television station in the production, origination, or

21  broadcast of digital television signals.

22         Section 3.  This act shall take effect July 1, 1999.

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25  ================ T I T L E   A M E N D M E N T ===============

26  And the title is amended as follows:

27         Delete everything before the enacting clause

28

29  and insert:

30                      A bill to be entitled

31         An act relating to economic development;

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                                                  SENATE AMENDMENT

    Bill No. HB 2073, 2nd Eng.

    Amendment No.    





 1         creating the "21st Century Digital Television

 2         and Education Act"; providing legislative

 3         findings and intent; creating the 21st Century

 4         Digital Television and Education Task Force;

 5         providing membership; providing duties;

 6         providing for a report; amending s. 212.08,

 7         F.S.; providing an exemption from the tax on

 8         sales, use, and other transactions for certain

 9         machinery or equipment purchased or leased for

10         use in the production, origination, or

11         broadcast of digital television signals;

12         defining the term "machinery or equipment" for

13         purposes of such exemption; providing an

14         effective date.

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