Senate Bill sb2242c1

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    Florida Senate - 2002                           CS for SB 2242

    By the Committee on Commerce and Economic Opportunities; and
    Senator Saunders




    310-2099-02

  1                      A bill to be entitled

  2         An act relating to economic development;

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

  4         under which certain producers of motion

  5         pictures, television programs, and commercials

  6         and certain digital effects companies shall be

  7         reimbursed for expenditures made in this state;

  8         providing a purpose and legislative findings

  9         for such program; prescribing limits on

10         reimbursement; providing duties of the Office

11         of Tourism, Trade, and Economic Development and

12         the Office of Film and Entertainment; providing

13         for rules; providing penalties for fraudulent

14         claims for reimbursement; providing an

15         appropriation; providing an effective date.

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17  Be It Enacted by the Legislature of the State of Florida:

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19         Section 1.  Section 288.1254, Florida Statutes, is

20  created to read:

21         288.1254  Entertainment industry financial incentive

22  program; creation.--There is created within the Office of

23  Tourism, Trade, and Economic Development an entertainment

24  industry financial incentive program. The purpose of this

25  program is to encourage the use of this state as a site for

26  filming, and for providing production services for, motion

27  pictures and television programs by the entertainment

28  industry, as defined in s. 288.125. The Legislature finds that

29  a public purpose of promoting the economic development of the

30  state is served by the provision of incentives under this

31  section.

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    Florida Senate - 2002                           CS for SB 2242
    310-2099-02




  1         (1)  Entities wholly or substantially producing motion

  2  pictures or television programs, and companies providing

  3  digital effects to those entities, are eligible for the

  4  following financial incentives from the state:

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

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

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

  8  more, television program, or commercial shall receive a

  9  reimbursement of 10 percent of its qualifying expenditures

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

11  program, or commercial. However, the maximum reimbursement

12  that may be made with respect to a motion picture is $2

13  million, the maximum reimbursement that may be made with

14  respect to a made-for-television movie with a running time of

15  90 minutes or more is $150,000, the maximum reimbursement that

16  may be made with respect to any other television program is

17  $50,000, and the maximum reimbursement that may be made with

18  respect to a commercial is $25,000. For the purposes of this

19  section, each individual episode of a television series

20  constitutes a separate television program. Expenditures for

21  which reimbursement shall be made include: salaries paid to,

22  and benefits paid on account of employment of, state

23  residents; rents for real and personal property used in the

24  production; payments to state residents or state-domiciled

25  entities for preproduction, production, or postproduction

26  services; and costs of set construction. No reimbursement

27  shall be authorized for actors' salaries.

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

29  furnishes services or digital material to an entity producing

30  motion pictures or television programs is eligible for a

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    Florida Senate - 2002                           CS for SB 2242
    310-2099-02




  1  payment in an amount equal to 5 percent of its gross billings,

  2  less sales tax.

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

  4  another state or Canada and relocates to this state, that

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

  6  equal to one-half of the total of 5 percent of its billings

  7  for the 12 months immediately preceding its relocation to

  8  Florida plus 5 percent of its billings for the first 12 months

  9  in its Florida domicile.

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

11  this section must submit documentation for claimed

12  expenditures to the Office of Film and Entertainment, which

13  shall review the application. The Office of Film and

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

15  and Economic Development whether the applicant meets the

16  criteria for a payment and recommend the amount of the

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

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

19  appropriation for that fiscal year is exhausted. 

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

21  Development shall adopt rules under ss. 120.536(1) and 120.54

22  to implement this section.

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

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

25  fraudulent is liable for reimbursement of the amount paid plus

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

27  addition to any criminal penalty to which the entity or

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

29  also liable for costs incurred by the state in investigating

30  the fraudulent claim.

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    Florida Senate - 2002                           CS for SB 2242
    310-2099-02




  1         Section 2.  The sum of $10 million is appropriated from

  2  the General Revenue Fund to the Office of Tourism, Trade, and

  3  Economic Development to implement this act in the 2002-2003

  4  fiscal year.

  5         Section 3.  This act shall take effect July 1, 2002.

  6

  7          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  8                         Senate Bill 2242

  9

10  The committee substitute differs from SB 2242 by:

11  1)  Finding that a public purpose is served by providing
    entertainment industry financial incentives;
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    2)  Specifying maximum reimbursements for made-for-television
13  movies and commercials;

14  3)  Revising maximum reimbursements for television episodes;

15  4)  Prohibiting reimbursements for actor salaries;

16  5)  Authorizing payments only to digital effects companies
    located in Florida; and
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    6)  Reducing the appropriation to $10 million from $20
18  million.

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