House Bill 2073e2
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HB 2073, Second Engrossed
1 A bill to be entitled
2 An act relating to the television broadcasting
3 industry; creating the "21st Century Digital
4 Television and Education Act"; providing
5 legislative findings and intent; creating the
6 21st Century Digital Television and Education
7 Task Force; providing membership; providing
8 duties; providing for a report; amending s.
9 212.08, F.S.; providing an exemption from the
10 tax on sales, use, and other transactions for
11 personal or real property purchased or leased
12 for use in the operation of a television
13 broadcasting station that meets specified
14 criteria; requiring return of tax refunds plus
15 interest and penalties if certain criteria are
16 not met; providing limitations; providing an
17 effective date.
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19 Be It Enacted by the Legislature of the State of Florida:
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21 Section 1. Twenty-first Century Digital Television and
22 Education Act.--
23 (1) SHORT TITLE.--This section may be cited as the
24 "21st Century Digital Television and Education Act."
25 (2) LEGISLATIVE FINDINGS AND INTENT.--The Legislature
26 finds that the federally mandated transition from analog to
27 digital television will provide numerous new, improved, and
28 innovative information and entertainment services to the
29 public. The Legislature further finds that, whereas all
30 commercial and noncommercial television markets in the United
31 States must begin digital broadcasts by no later than May
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HB 2073, Second Engrossed
1 2003, it is in the interest of the state to facilitate the
2 conversion of existing television stations, studios, networks,
3 and production companies to digital technology as well as to
4 encourage new companies involved in digital television and
5 related industries to locate in Florida. It is therefore the
6 intent of the Legislature to investigate and create the
7 economic incentives and educational opportunities necessary to
8 position Florida as a 21st century leader in the production,
9 transmission, manufacturing, and research and development of
10 digital television and related digital communication.
11 (3) TASK FORCE; MEMBERSHIP; DUTIES.--
12 (a) The "21st Century Digital Television and Education
13 Task Force" is hereby created to serve through February 1,
14 2000. The task force is created within the Office of Tourism,
15 Trade, and Economic Development, which shall provide staff
16 support for the activities of the task force. The task force
17 shall consist of the following members:
18 1. Two members to be appointed by the Governor.
19 2. Two members of the Senate, or their designees, to
20 be appointed by the President of the Senate.
21 3. Two members of the House of Representatives, or
22 their designees, to be appointed by the Speaker of the House
23 of Representatives.
24 4. The Commissioner of Education or the commissioner's
25 designee.
26 5. The Chancellor of the State University System or
27 the chancellor's designee.
28 6. The Executive Director of the State Community
29 College System or the executive director's designee.
30 7. The President of the Independent Colleges and
31 Universities of Florida or the president's designee.
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HB 2073, Second Engrossed
1 (b) Each appointed member of the task force shall
2 serve at the pleasure of the appointing official. A vacancy on
3 the task force shall be filled in the same manner as the
4 original appointment.
5 (c) The task force shall elect a chair from among its
6 members. A vacancy in the chair of the task force must be
7 filled for the remainder of the unexpired term by election by
8 the task force members.
9 (d) The task force shall meet as necessary, at the
10 call of the chair or at the call of a quorum of the task
11 force, and at the time and place designated by the chair. A
12 quorum is necessary for the purpose of conducting official
13 business of the task force. Six members of the task force
14 shall constitute a quorum. The task force shall use accepted
15 rules of procedure to conduct its meetings and shall keep a
16 complete record of each meeting.
17 (e) Members of the task force shall receive no
18 compensation for their services, but shall be entitled to
19 receive per diem and travel expenses as provided in s.
20 112.061, Florida Statutes.
21 (f) The task force shall act as an advisory body and
22 shall make recommendations to the Governor and the Legislature
23 on a coordinated plan to carry out the legislative intent of
24 this section. The task force shall have the following duties:
25 1. To devise a plan to recruit the following industry
26 segments to locate in Florida:
27 a. Digital programmers and producers, including
28 companies involved in the production, marketing, and
29 development of digital content, as well as studios, networks,
30 and television stations.
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HB 2073, Second Engrossed
1 b. Companies involved in the transmission of digital
2 media, including television broadcasters, cable and satellite
3 companies, television, theater, and film industry members,
4 Internet content providers, web site producers, and other
5 information service providers.
6 c. Digital television equipment manufacturers,
7 including makers of digital video cameras, audio equipment,
8 transmission equipment, television sets, set-top boxes and
9 related hardware, monitors, displays, tapes, and discs.
10 d. Companies involved in the research and development
11 of new and innovative digital television equipment, consumer
12 electronics, prototypes, and products.
13 2. To investigate and recommend strong economic
14 incentives to encourage the digital industry segments
15 described in subparagraph 1. to locate and compete in Florida.
16 3. To devise a plan to create and maintain higher
17 education opportunities for students wishing to enter the
18 digital television field. At minimum, the plan shall consider
19 and address the following:
20 a. The extent to which higher education opportunities
21 are currently available to students in the areas of digital
22 production, transmission, manufacturing, and research and
23 development.
24 b. The workforce needs of the digital television
25 industry segments described in subparagraph 1.
26 c. Recommendations and an operational plan for
27 creating and maintaining higher education opportunities in
28 digital television production, transmission, manufacturing,
29 and research and development.
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HB 2073, Second Engrossed
1 d. Any other recommendations to encourage and promote
2 the development of a skilled workforce in digital broadcast
3 communications and high-definition television.
4 4. To recommend methods to hasten the conversion of
5 existing commercial television studios and soundstages from
6 analog to digital technology.
7 5. To recommend a means to fund the cost of converting
8 public broadcast stations from analog to digital technology,
9 including a grant program for Florida Public Television.
10 6. To issue a report to the Legislature no later than
11 February 1, 2000, summarizing its findings, stating its
12 conclusions, and proposing its recommendations.
13 Section 2. Paragraph (f) of subsection (5) of section
14 212.08, Florida Statutes, 1998 Supplement, is amended to read:
15 212.08 Sales, rental, use, consumption, distribution,
16 and storage tax; specified exemptions.--The sale at retail,
17 the rental, the use, the consumption, the distribution, and
18 the storage to be used or consumed in this state of the
19 following are hereby specifically exempt from the tax imposed
20 by this chapter.
21 (5) EXEMPTIONS; ACCOUNT OF USE.--
22 (f) Motion picture or video equipment used in motion
23 picture or television production activities and sound
24 recording equipment used in the production of master tapes and
25 master records; property purchased or leased to operate
26 certain television broadcasting stations.--
27 1. Motion picture or video equipment and sound
28 recording equipment purchased or leased for use in this state
29 in production activities is exempt from the tax imposed by
30 this chapter upon an affirmative showing by the purchaser or
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HB 2073, Second Engrossed
1 lessee to the satisfaction of the department that the
2 equipment will be used for production activities.
3 2. There is exempt from the tax imposed by this
4 chapter all personal or real property purchased or leased for
5 use in the operation of any television broadcasting station
6 that meets all of the following requirements:
7 a. It has been acquired following the conclusion of
8 bankruptcy proceedings by a previously unrelated owner. The
9 station general manager of the acquiring station must submit
10 an affidavit to the department stating that the acquiring
11 station had no ownership interest, or other business
12 relationship, with the previous owner that went through
13 bankruptcy proceedings.
14 b. It submits an affidavit to the department from its
15 general manager stating that the television broadcasting
16 station or stations under common ownership have established
17 and maintained more than 75 full-time jobs since acquisition.
18 c. The acquiring owner has invested more than $5
19 million in capital improvements since the acquisition of the
20 television broadcasting station or stations.
21 d. It is located within the boundaries of a
22 metropolitan statistical area as defined in s. 334.03(17) and
23 shares common ownership or management with another television
24 broadcasting station that has been acquired following
25 bankruptcy that is located in a different metropolitan
26 statistical area.
27 e. In the calendar year following receipt of a tax
28 refund pursuant to this section, it broadcasts at no cost to
29 the state youth-oriented anti-tobacco public service
30 announcements and programming of a value equal to or greater
31 than the tax refund received by the television broadcasting
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HB 2073, Second Engrossed
1 station in the previous year. If a television broadcasting
2 station that has received a refund fails to broadcast
3 sufficient public service announcements and programming, the
4 taxpayer must return the refund to the state together with
5 interest and penalties; however, if the refund is returned
6 within 30 days after the expiration of such 1-year period,
7 interest and penalties do not apply.
8 3. The exemptions exemption provided by this paragraph
9 shall inure to the taxpayer only through a refund of
10 previously paid taxes. With respect to the refund authorized
11 under subparagraph 2., the maximum refund allowed in any year
12 shall not exceed $350,000 for any television broadcasting
13 station or group of television broadcasting stations that
14 share common ownership or management, and no taxpayer may
15 receive a refund for more than 5 years. Notwithstanding the
16 provisions of s. 212.095, such refund shall be made within 30
17 days of formal application, which application may be made
18 after the completion of production activities or on a
19 quarterly basis with respect to the refund authorized under
20 subparagraph 1., and on a quarterly basis with respect to the
21 refund authorized under subparagraph 2. Notwithstanding the
22 provisions of chapter 213, the department shall provide the
23 Office of Tourism, Trade and Economic Development Department
24 of Commerce with a copy of each refund application and the
25 amount of such refund, if any.
26 4.2. For the purpose of the exemption provided in
27 subparagraph 1.:
28 a. "Motion picture or video equipment" and "sound
29 recording equipment" includes only equipment meeting the
30 definition of "section 38 property" as defined in s.
31 48(a)(1)(A) and (B)(i) of the Internal Revenue Code that is
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HB 2073, Second Engrossed
1 used by the lessee or purchaser exclusively as an integral
2 part of production activities; however, motion picture or
3 video equipment and sound recording equipment does not include
4 supplies, tape, records, film, or video tape used in
5 productions or other similar items; vehicles or vessels; or
6 general office equipment not specifically suited to production
7 activities. In addition, the term does not include equipment
8 purchased or leased by television or radio broadcasting or
9 cable companies licensed by the Federal Communications
10 Commission.
11 b. "Production activities" means activities directed
12 toward the preparation of a:
13 (I) Master tape or master record embodying sound; or
14 (II) Motion picture or television production which is
15 produced for theatrical, commercial, advertising, or
16 educational purposes and utilizes live or animated actions or
17 a combination of live and animated actions. The motion picture
18 or television production shall be commercially produced for
19 sale or for showing on screens or broadcasting on television
20 and may be on film or video tape.
21 Section 3. This act shall take effect upon becoming a
22 law.
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