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



                                                   HOUSE AMENDMENT

    hbd-032                             Bill No. HB 1647, 1st Eng.

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

                            CHAMBER ACTION
              Senate                               House
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  5                                           ORIGINAL STAMP BELOW

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10  ______________________________________________________________

11  Representative(s) Davis offered the following:

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13         Amendment (with title amendment) 

14  Remove everything after the enacting clause

15

16  and insert:

17         Section 1.  Section 288.1254, Florida Statutes, is

18  created to read:

19         288.1254  Entertainment industry financial incentive

20  program; creation.--Subject to specific appropriation, there

21  is created within the Office of Tourism, Trade, and Economic

22  Development an entertainment industry financial incentive

23  program. The purpose of this program is to encourage the use

24  of this state as a site for filming and for providing

25  production services for motion pictures and television

26  programs by the entertainment industry, as defined in s.

27  288.125. The Legislature finds that a public purpose of

28  promoting the economic development of the state is served by

29  the provision of incentives under this section.

30         (1)  Entities wholly or substantially producing motion

31  pictures or television programs and companies providing

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                                                   HOUSE AMENDMENT

    hbd-032                             Bill No. HB 1647, 1st Eng.

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





  1  digital effects to those entities are eligible for the

  2  following financial incentives from the state:

  3         (a)  An entity that makes expenditures in this state

  4  for the total or partial production of a motion picture,

  5  made-for-television movie with a running time of 90 minutes or

  6  more, television program, or commercial shall receive a

  7  reimbursement of 10 percent of its qualifying expenditures

  8  within this state on that motion picture, movie, television

  9  program, or commercial that demonstrates a minimum of $1

10  million in total qualified expenditures. However, the maximum

11  reimbursement that may be made with respect to a motion

12  picture is $2 million, the maximum reimbursement that may be

13  made with respect to a made-for-television movie with a

14  running time of 90 minutes or more is $150,000, the maximum

15  reimbursement that may be made with respect to any other

16  television program is $50,000, and the maximum reimbursement

17  that may be made with respect to a commercial is $25,000. For

18  the purposes of this section, each individual episode of a

19  television series constitutes a separate television program.

20  Expenditures for which reimbursement shall be made include

21  salaries paid to and employment benefits paid on behalf of

22  state residents; rents for real and personal property used in

23  the production; payments to state residents or state-domiciled

24  entities for preproduction, production, or postproduction

25  services; and costs of set construction. No reimbursement

26  shall be authorized for salaries of the two highest-paid

27  principal talent. Salaries of other actors are reimbursable.

28         (b)  A digital effects company in this state which

29  furnishes services or digital material to an entity producing

30  motion pictures or television programs in Florida is eligible

31  for a payment in an amount equal to 5 percent of its gross

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    File original & 9 copies    03/15/02
    hbd0022                     11:44 am         01647-0018-242449




                                                   HOUSE AMENDMENT

    hbd-032                             Bill No. HB 1647, 1st Eng.

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





  1  billings, less sales tax.

  2         (c)  If a digital effects company is domiciled in

  3  another state or country and relocates to this state, that

  4  company is eligible for a one-time bonus payment in an amount

  5  equal to 5 percent of its billings for the first 12 months in

  6  its Florida domicile.

  7         (2)  An entity or company applying for a payment under

  8  this section must submit documentation for claimed

  9  expenditures to the Office of Film and Entertainment, which

10  shall review the application. The Office of Film and

11  Entertainment shall recommend to the Office of Tourism, Trade,

12  and Economic Development whether the applicant meets the

13  criteria for a payment and recommend the amount of the

14  payment. Payments under this section in a fiscal year shall be

15  made on a first-come, first-served basis, until the

16  appropriation for that fiscal year is exhausted.

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

18  Development shall adopt policies and procedures necessary to

19  implement this section.

20         (4)  An eligible entity or company that obtains a

21  payment under this section through a claim that it knows is

22  fraudulent is liable for reimbursement of the amount paid plus

23  a penalty in an amount double the payment, which penalty is in

24  addition to any criminal penalty to which the entity or

25  company is liable for the same acts. The entity or company is

26  also liable for costs incurred by the state in investigating

27  the fraudulent claim.

28         Section 2.  This act shall take effect July 1, 2002.

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                                                   HOUSE AMENDMENT

    hbd-032                             Bill No. HB 1647, 1st Eng.

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





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

  2  And the title is amended as follows:

  3  remove:  the entire title

  4

  5  and insert:

  6                      A bill to be entitled

  7         An act relating to economic development;

  8         creating s. 288.1254, F.S.; creating a program

  9         under which certain producers of motion

10         pictures, television programs, and commercials

11         and certain digital effects companies shall be

12         reimbursed for expenditures made in this state;

13         providing a purpose and legislative findings

14         for such program; prescribing limits on

15         reimbursement; providing duties of the Office

16         of Tourism, Trade, and Economic Development and

17         the Office of Film and Entertainment; providing

18         for rules; providing penalties for fraudulent

19         claims for reimbursement; authorizing the

20         office to expend a portion of appropriated

21         moneys for a specified purpose; providing an

22         effective date.

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    File original & 9 copies    03/15/02
    hbd0022                     11:44 am         01647-0018-242449