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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:

12

13         Senate Amendment (with title amendment) 

14         Delete everything after the enacting clause

15

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; and property purchased or leased to operate certain

24  television broadcasting stations.--

25         1.  Motion picture or video equipment and sound

26  recording equipment purchased or leased for use in this state

27  in production activities is exempt from the tax imposed by

28  this chapter upon an affirmative showing by the purchaser or

29  lessee to the satisfaction of the department that the

30  equipment will be used for production activities.

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

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                                                  SENATE AMENDMENT

    Bill No. HB 2073, 2nd Eng.

    Amendment No.    





 1  chapter all machinery or equipment purchased or leased in this

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

 3  television production company, or federally licensed

 4  television station in the production, origination, or

 5  broadcast of digital television signals.

 6         3.  There is exempt from the tax imposed by this

 7  chapter all personal or real property purchased or leased for

 8  use in the operation of any television broadcasting station

 9  that meets all of the following requirements:

10         a.  It has been acquired following the conclusion of

11  bankruptcy proceedings by a previously unrelated owner.  The

12  station general manager of the acquiring station must submit

13  an affidavit to the department stating that the acquiring

14  station had no ownership interest, or other business

15  relationship, with the previous owner that went through

16  bankruptcy proceedings.

17         b.  It submits an affidavit to the department from its

18  general manager stating that the television broadcasting

19  station or stations under common ownership have established

20  and maintained more than 75 full-time jobs since acquisition.

21         c.  The acquiring owner has invested more than $5

22  million in capital improvements since the acquisition of the

23  television broadcasting station or stations.

24         d.  It is located within the boundaries of a

25  metropolitan statistical area as defined in s. 334.03(17) and

26  shares common ownership or management with another television

27  broadcasting station that has been acquired following

28  bankruptcy that is located in a different metropolitan

29  statistical area.

30         e.  In the calendar year following receipt of a tax

31  refund pursuant to this section, it broadcasts at no cost to

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                                                  SENATE AMENDMENT

    Bill No. HB 2073, 2nd Eng.

    Amendment No.    





 1  the state youth-oriented anti-tobacco public service

 2  announcements and programming of a value equal to or greater

 3  than the tax refund received by the television broadcasting

 4  station in the previous year.  If a television broadcasting

 5  station that has received a refund fails to broadcast

 6  sufficient public service announcements and programming, the

 7  taxpayer must return the refund to the state together with

 8  interest and penalties; however, if the refund is returned

 9  within 30 days after the expiration of such 1-year period,

10  interest and penalties do not apply.

11         4.  The exemptions exemption provided by this paragraph

12  shall inure to the taxpayer only through a refund of

13  previously paid taxes. With respect to the refund authorized

14  under subparagraph 3., the maximum refund allowed in any year

15  shall not exceed $350,000 for any television broadcasting

16  station or group of television broadcasting stations that

17  share common ownership or management, and no taxpayer may

18  receive a refund for more than 5 years. Notwithstanding the

19  provisions of s. 212.095, such refund shall be made within 30

20  days of formal application, which application may be made

21  after the completion of production activities or on a

22  quarterly basis with respect to the refund authorized under

23  subparagraph 1., and on a quarterly basis with respect to the

24  refund authorized under subparagraphs 2. and 3.

25  Notwithstanding the provisions of chapter 213, the department

26  shall provide the Office of Tourism, Trade, and Economic

27  Development Department of Commerce with a copy of each refund

28  application and the amount of such refund, if any.

29         5.2.  For the purpose of the exemption provided in

30  subparagraph 1.:

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

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                                                  SENATE AMENDMENT

    Bill No. HB 2073, 2nd Eng.

    Amendment No.    





 1  recording equipment" includes only equipment meeting the

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

 3  48(a)(1)(A) and (B)(i) of the Internal Revenue Code that is

 4  used by the lessee or purchaser exclusively as an integral

 5  part of production activities; however, motion picture or

 6  video equipment and sound recording equipment does not include

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

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

 9  general office equipment not specifically suited to production

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

11  purchased or leased by television or radio broadcasting or

12  cable companies licensed by the Federal Communications

13  Commission.

14         b.  "Production activities" means activities directed

15  toward the preparation of a:

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

17         (II)  Motion picture or television production which is

18  produced for theatrical, commercial, advertising, or

19  educational purposes and utilizes live or animated actions or

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

21  or television production shall be commercially produced for

22  sale or for showing on screens or broadcasting on television

23  and may be on film or video tape.

24         6.  For the purpose of the exemption provided in

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

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

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

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

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

30  television production company, or federally licensed

31  television station in the production, origination, or

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                                                  SENATE AMENDMENT

    Bill No. HB 2073, 2nd Eng.

    Amendment No.    





 1  broadcast of digital television signals.

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

 3

 4

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

 6  And the title is amended as follows:

 7         Delete everything before the enacting clause

 8

 9  and insert:

10                      A bill to be entitled

11         An act relating to economic development;

12         creating the "21st Century Digital Television

13         and Education Act"; providing legislative

14         findings and intent; creating the 21st Century

15         Digital Television and Education Task Force;

16         providing membership; providing duties;

17         providing for a report; amending s. 212.08,

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

19         sales, use, and other transactions for certain

20         machinery or equipment purchased or leased for

21         use in the production, origination, or

22         broadcast of digital television signals;

23         defining the term "machinery or equipment" for

24         purposes of such exemption; providing an

25         exemption from the tax on sales, use, and other

26         transactions for personal or real property

27         purchased or leased for use in the operation of

28         a television broadcasting station that meets

29         specified criteria; requiring return of tax

30         refunds plus interest and penalties if certain

31         criteria are not met; providing limitations;

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                                                  SENATE AMENDMENT

    Bill No. HB 2073, 2nd Eng.

    Amendment No.    





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