CODING: Words stricken are deletions; words underlined are additions.





                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 001 (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 5                                           ORIGINAL STAMP BELOW

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10                                                                

11  The Committee on Business Development & International Trade

12  offered the following:

13

14         Amendment (with title amendment) 

15  Remove from the bill:  Everything after the enacting clause

16

17  and insert in lieu thereof:

18         Section 1.  Twenty-first Century Digital Television and

19  Education Act.--

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

21  Century Digital Television and Education Act."

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

23  finds that the federally mandated transition from analog to

24  digital television will provide numerous new, improved, and

25  innovative information and entertainment services to the

26  public. The Legislature further finds that, whereas all

27  commercial and noncommercial television markets in the United

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

29  2003, it is in the interest of the state to facilitate the

30  conversion of existing television stations, studios, networks,

31  and production companies to digital technology as well as to

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 001 (for drafter's use only)





 1  encourage new companies involved in digital television and

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

 3  intent of the Legislature to investigate and create the

 4  economic incentives and educational opportunities necessary to

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

 6  transmission, manufacturing, and research and development of

 7  digital television and related digital communication.

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

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

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

11  2000. The task force is created within the Office of Tourism,

12  Trade, and Economic Development, which shall provide staff

13  support for the activities of the taskforce.  The task force

14  shall consist of the following members:

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

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

17  be appointed by the President of the Senate.

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

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

20  of Representatives.

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

22  designee.

23         5.  The Chancellor of the State University System or

24  the chancellor's designee.

25         6.  The Executive Director of the State Community

26  College System or the executive director's designee.

27         7.  The President of the Independent Colleges and

28  Universities of Florida or the president's designee.

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

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

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

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 001 (for drafter's use only)





 1  original appointment.

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

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

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

 5  of the task force members.

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

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

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

 9  quorum is necessary for the purpose of conducting official

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

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

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

13  complete record of each meeting.

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

15  compensation for their services, but shall be entitled to

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

17  112.061, Florida Statutes.

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

19  shall make recommendations to the Governor and the Legislature

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

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

22         1.  Devise a plan to recruit the following industry

23  segments to locate in Florida:

24         a.  Digital programmers and producers, including

25  companies involved in the production, marketing, and

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

27  and television stations.

28         b.  Companies involved in the transmission of digital

29  media, including television broadcasters, cable and satellite

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

31  Internet content providers, web site producers, and other

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 001 (for drafter's use only)





 1  information service providers.

 2         c.  Digital television equipment manufacturers,

 3  including makers of digital video cameras, audio equipment,

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

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

 6         d.  Companies involved in the research and development

 7  of new and innovative digital television equipment, consumer

 8  electronics, prototypes, and products.

 9         2.  Investigate and recommend strong economic

10  incentives to encourage the digital industry segments

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

12         3.  Devise a plan to create and maintain higher

13  education opportunities for students wishing to enter the

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

15  and address the following:

16         a.  The extent to which higher education opportunities

17  are currently available to students in the areas of digital

18  production, transmission, manufacturing, and research and

19  development.

20         b.  The workforce needs of the digital television

21  industry segments described in subparagraph 1.

22         c.  Recommendations and an operational plan for

23  creating and maintaining higher education opportunities in

24  digital television production, transmission, manufacturing,

25  and research and development.

26         d.  Any other recommendations to encourage and promote

27  the development of a skilled workforce in digital broadcast

28  communications and high-definition television.

29         4.  Recommend methods to hasten the conversion of

30  existing commercial television studios and soundstages from

31  analog to digital technology.

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 001 (for drafter's use only)





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

 2  public broadcast stations from analog to digital technology,

 3  including a grant program for Florida Public Television.

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

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

 6  conclusions, and proposing its recommendations.

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

 8  212.08, Florida Statutes, 1998 Supplement, 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         (5)  EXEMPTIONS; ACCOUNT OF USE.--

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

17  picture or television production activities and sound

18  recording equipment used in the production of master tapes and

19  master records; property purchased or leased to produce,

20  transmit, receive, or redistribute digital television

21  signals.--

22         1.  Motion picture or video equipment and sound

23  recording equipment purchased or leased for use in this state

24  in production activities is exempt from the tax imposed by

25  this chapter upon an affirmative showing by the purchaser or

26  lessee to the satisfaction of the department that the

27  equipment will be used for production activities.

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

29  chapter all machinery or equipment purchased or leased in this

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

31  television production company, or federally licensed

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 001 (for drafter's use only)





 1  television station or cable television company in the

 2  production, origination, broadcast, transmission, receipt, or

 3  redistribution of digital television signals.

 4         3.  The exemptions exemption provided by this paragraph

 5  shall inure to the taxpayer only through a refund of

 6  previously paid taxes. Notwithstanding the provisions of s.

 7  212.095, such refund shall be made within 30 days of formal

 8  application, which application may be made after the

 9  completion of production activities or on a quarterly basis.

10  Notwithstanding the provisions of chapter 213, the department

11  shall provide the Department of Commerce with a copy of each

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

13         4.2.  For the purpose of the exemption provided in

14  subparagraph 1.:

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

16  recording equipment" includes only equipment meeting the

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

18  48(a)(1)(A) and (B)(i) of the Internal Revenue Code that is

19  used by the lessee or purchaser exclusively as an integral

20  part of production activities; however, motion picture or

21  video equipment and sound recording equipment does not include

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

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

24  general office equipment not specifically suited to production

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

26  purchased or leased by television or radio broadcasting or

27  cable companies licensed by the Federal Communications

28  Commission.

29         b.  "Production activities" means activities directed

30  toward the preparation of a:

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

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 001 (for drafter's use only)





 1         (II)  Motion picture or television production which is

 2  produced for theatrical, commercial, advertising, or

 3  educational purposes and utilizes live or animated actions or

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

 5  or television production shall be commercially produced for

 6  sale or for showing on screens or broadcasting on television

 7  and may be on film or video tape.

 8         5.  For the purpose of the exemption provided in

 9  subparagraph 2., the term "machinery and equipment" means

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

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

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

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

14  television production company, or federally licensed

15  television station or cable television company in the

16  production, origination, broadcast, transmission, receipt, or

17  redistribution of digital television signals.

18         Section 3.  This act shall take effect upon becoming a

19  law.

20

21

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

23  And the title is amended as follows:

24         On page 1, lines 2 through 14,

25  remove from the title of the bill:  all of said lines

26

27  and insert in lieu thereof:

28         An act relating to economic development;

29         creating the "21st Century Digital Television

30         and Education Act"; providing legislative

31         findings and intent; creating the 21st Century

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 001 (for drafter's use only)





 1         Digital Television and Education Task Force;

 2         providing membership; providing duties;

 3         providing for a report; amending s. 212.08,

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

 5         sales, use, and other transactions for

 6         machinery or equipment purchased or leased for

 7         use in the production, transmission, receipt,

 8         or redistribution of digital television

 9         signals; defining the term "machinery and

10         equipment" for purposes of such exemption;

11         providing an effective date.

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