HOUSE AMENDMENT Bill No.  HB 1149
1	A bill to be entitled
2	An act relating to economic development; amending s.
3	288.125, F.S.; expanding applicability of the definition
4	of the term "entertainment industry"; creating s.
5	288.1254, F.S.; creating a program under which certain
6	persons producing, or providing services for the
7	production of, filmed entertainment are eligible for state
8	financial incentives for activities in or relocated to
9	this state; prescribing powers and duties of the Office of
10	Tourism, Trade, and Economic Development and the Office of
11	Film and Entertainment with respect to the program;
12	defining terms; providing an application procedure and
13	approval process; prescribing limits on reimbursement;
14	requiring documentation for requested reimbursement;
15	providing for policies and procedures; providing penalties
16	for fraudulent claims for reimbursement; providing an
17	appropriation; requiring a report; providing an effective
18	date.
19
20	Be It Enacted by the Legislature of the State of Florida:
21
22	Section 1. Section 288.125, Florida Statutes, is amended
23	to read:
24	288.125 Definition of "entertainment industry".--For the
25	purposes of ss. 288.1251-288.1258ss. 288.1251-288.1253, the
26	term "entertainment industry" means those persons or entities
27	engaged in the operation of motion picture or television studios
28	or recording studios; those persons or entities engaged in the
29	preproduction, production, or postproduction of motion pictures,
30	made-for-TV motion pictures, television series, commercial
31	advertising, music videos, or sound recordings; and those
32	persons or entities providing products or services directly
33	related to the preproduction, production, or postproduction of
34	motion pictures, made-for-TV motion pictures, television series,
35	commercial advertising, music videos, or sound recordings,
36	including, but not limited to, the broadcast industry.
37	Section 2. Section 288.1254, Florida Statutes, is created
38	to read:
39	288.1254 Entertainment industry financial incentive
40	program; creation; purpose; definitions; application procedure;
41	approval process; reimbursement eligibility; submission of
42	required documentation; recommendations for payment; policies
43	and procedures; fraudulent claims.--
44	(1) CREATION AND PURPOSE OF PROGRAM.--Subject to specific
45	appropriation, there is created within the Office of Tourism,
46	Trade, and Economic Development an entertainment industry
47	financial incentive program. The purpose of this program is to
48	encourage the use of this state as a site for filming, and for
49	providing production services for, motion pictures, made-for-
50	television movies, commercials, music videos, industrial and
51	educational films, and television programs by the entertainment
52	industry.
53	(2) DEFINITIONS.--As used in this section, the term:
54	(a) "Filmed entertainment" means a motion picture,
55	teleproduction, commercial, music video, or digital-media-
56	effects production to be sold or displayed in an electronic
57	medium.
58	(b) "Production costs" means the total cost of producing
59	filmed entertainment, including expenses incurred for travel
60	when purchased from a Florida-based travel agency or travel
61	company.
62	(c) "Qualified expenditures" means goods purchased or
63	leased or services purchased, leased, or employed from a
64	resident of this state or a vendor or supplier who is located
65	and doing business in this state.
66	(d) "Qualified production" means filmed entertainment that
67	makes expenditures in this state for the total or partial
68	production of a motion picture, made-for-television movie with a
69	running time of 90 minutes or more, commercial, music video,
70	industrial and educational film, television series pilot, or
71	television episode, which production is intended, where
72	applicable, to have a rating no more restrictive than "NC-17" or
73	a comparable status in the case of a production intended for
74	television.
75	(e) "Qualified relocation project" means a corporation,
76	limited liability company, partnership, corporate headquarters,
77	or other private entity that is domiciled in another state or
78	country and relocates its operations to this state, is organized
79	under the laws of this or any other state or country, and
80	includes as one of its primary purposes digital-media-effects or
81	motion picture and television production, or postproduction.
82	(3) APPLICATION PROCEDURE; APPROVAL PROCESS.--
83	(a) Any company engaged in this state in producing filmed
84	entertainment may submit an application to the Office of Film
85	and Entertainment for the purpose of determining qualification
86	for receipt of reimbursement provided in this section. The
87	office must be provided information required to determine if the
88	production is a qualified production and to determine the
89	qualified expenditures, production costs, and other information
90	necessary for the office to determine both eligibility for and
91	level of reimbursement.
92	(b) A digital-media-effects or postproduction company in
93	the state which furnishes services or digital material to a
94	qualified production that is certified by the Office of Film and
95	Entertainment may submit an application to the Office of Film
96	and Entertainment for the purpose of determining qualification
97	for receipt of reimbursement authorized by this section. The
98	office must be provided information required to determine if the
99	company is qualified and to determine the amount of
100	reimbursement.
101	(c) Any corporation, limited liability company,
102	partnership, corporate headquarters, or other private entity
103	domiciled in an another state which includes as one of its
104	primary purposes digital-media-effects or motion picture and
105	television production or postproduction and which is considering
106	relocation to this state may submit an application to the Office
107	of Film and Entertainment for the purpose of determining
108	qualification for reimbursement under this section.
109	(d)1. The Office of Film and Entertainment shall establish
110	a process by which an application is accepted and reviewed and
111	reimbursement eligibility and reimbursement amount are
112	determined. The Office of Film and Entertainment may, when
113	appropriate, delegate to a duly appointed local film commission
114	the responsibility for determining qualifications for
115	reimbursement and compliance.
116	2. Upon determination that all criteria are met for
117	qualification for reimbursement, the office shall notify the
118	applicant of such approval. The office shall also notify the
119	Office of Tourism, Trade, and Economic Development of the
120	applicant approval and amount of reimbursement required. The
121	Office of Tourism, Trade, and Economic Development shall make
122	final determination for actual reimbursement.
123	3. The Office of Film and Entertainment shall deny an
124	application if it determines that:
125	a. The application is not complete or does not meet the
126	requirements of this section; or
127	b. The reimbursement sought does not meet the requirements
128	of this section for such reimbursement.
129	(e) The Office of Film and Entertainment shall develop a
130	standardized application form for use in approving a qualified
131	production, a qualified relocation project, or a company
132	qualifying under paragraph (b). The application form must
133	include, but is not limited to, production-related information
134	on employment, proposed total production budgets, planned
135	expenditures in this state which are intended for use
136	exclusively as an integral part of preproduction, production, or
137	postproduction activities engaged in primarily in this state,
138	and a signed affirmation from the Office of Film and
139	Entertainment that the information on the application form has
140	been verified and is correct. The application form shall be
141	distributed to applicants by the Office of Film and
142	Entertainment or local film commissions.
143	(f) The Office of Film and Entertainment must complete its
144	review of each application within 5 days after receipt of the
145	completed application, including all required information, and
146	it must notify the applicant of its determination within 10
147	business days after receipt of the completed application and
148	required information.
149	(4) REIMBURSEMENT ELIGIBILITY; SUBMISSION OF REQUIRED
150	DOCUMENTATION; RECOMMENDATIONS FOR PAYMENT.--
151	(a) A qualified production that is certified by the Office
152	of Film and Entertainment is eligible for the following
153	financial incentives from the state:
154	1. A reimbursement of up to 15 percent of its qualifying
155	expenditures within this state on that motion picture, made-for-
156	television movie with a running time of 90 minutes or more,
157	commercial, music video, industrial film, educational film,
158	television series pilot, or television episode that demonstrates
159	a minimum of $850,000 in total qualified expenditures. However,
160	the maximum reimbursement that may be made with respect to a
161	motion picture is $2 million, the maximum reimbursement that may
162	be made with respect to a made-for-television movie or
163	television series pilot with a running time of 90 minutes or
164	more is $450,000, the maximum reimbursement that may be made
165	with respect to any single television series pilot or television
166	episode is $150,000, the maximum reimbursement that may be made
167	with respect to a music video or commercial is $25,000, and the
168	maximum reimbursement that may be made with respect to an
169	industrial film or an educational film is $15,000. All noted
170	reimbursements are subject to appropriation. Payments under this
171	section in a fiscal year shall be made on a first-come, first-
172	served basis until the appropriation for that fiscal year is
173	exhausted. Subject to subsequent appropriations, the eligibility
174	of qualified productions shall carry over from year to year. The
175	Office of Film and Entertainment shall develop a procedure to
176	ensure that qualified productions continue on a reasonable
177	schedule until completion. If a qualified production is not
178	continued according to a reasonable schedule, the office shall
179	withdraw its eligibility and reallocate the funds to other
180	qualified productions.
181	2. Qualified expenditures for which reimbursement shall be
182	made include salaries paid to and employment benefits paid on
183	behalf of state residents; rents for real and personal property
184	used in the production; payments to state residents or state-
185	domiciled entities for preproduction, production,
186	postproduction, and digital-media-effects services; and cost of
187	set construction. Reimbursement may not be authorized for
188	salaries of the two highest-paid actors. Salaries of other
189	actors are reimbursable.
190	(b) A digital-media-effects or postproduction company in
191	the state which furnishes services or digital material to a
192	qualified production that is certified by the Office of Film and
193	Entertainment may be eligible for a payment in an amount not to
194	exceed 5 percent of its annual gross revenues on qualified
195	expenditures listed in subparagraph (a)2. before taxes or
196	$100,000, whichever is less. A company applying for payment must
197	submit documentation annually as required by the Office of Film
198	and Entertainment for determination of eligibility of claimed
199	billing and determination of the amount of payment for which the
200	company is eligible.
201	(c) A qualified relocation project that is certified by
202	the Office of Film and Entertainment is eligible for a one-time
203	incentive payment in an amount equal to 5 percent of its annual
204	gross revenues before taxes for the first 12 months of
205	conducting business in its Florida domicile or $200,000,
206	whichever is less. A company applying for payment must submit
207	documentation as required by the Office of Film and
208	Entertainment for determination of eligibility of claimed
209	billing and determination of the amount of payment for which the
210	company is eligible.
211	(d) A qualified production, a digital-media-effects
212	company, or a qualified relocation project applying for a
213	payment under this section must submit documentation for claimed
214	qualified expenditures to the Office of Film and Entertainment.
215	Only one entity is eligible for payment for each application for
216	claimed expenditures.
217	(e) The Office of Film and Entertainment shall notify the
218	Office of Tourism, Trade, and Economic Development whether an
219	applicant meets the criteria for reimbursement and shall
220	recommend the reimbursement amount. The Office of Tourism,
221	Trade, and Economic Development shall make the final
222	determination for actual reimbursement.
223	(5) POLICIES AND PROCEDURES.--The Office of Tourism,
224	Trade, and Economic Development shall adopt policies and
225	procedures to implement this section, including, but not limited
226	to, requirements for the application and approval process,
227	records required for submission for substantiation for
228	reimbursement, and determination of and qualification for
229	reimbursement.
230	(6) FRAUDULENT CLAIMS.--An eligible entity or company that
231	obtains a payment under this section through a claim that it
232	knows is fraudulent is liable for reimbursement of the amount
233	paid plus a penalty in an amount double the payment and
234	reimbursement of reasonable costs, which penalty is in addition
235	to any criminal penalty to which the entity or company is liable
236	for the same acts. The entity or company is also liable for
237	costs and fees incurred by the state in investigating and
238	prosecuting the fraudulent claim.
239	Section 3. The sum of $20 million is appropriated from the
240	General Revenue Fund to the Office of Tourism, Trade, and
241	Economic Development to implement this act in the 2003-2004
242	fiscal year. The Office of Tourism, Trade, and Economic
243	Development may use up to $50,000 for staff and administrative
244	costs to implement this act.
245	Section 4. The Office of Film and Entertainment shall
246	provide an annual report, due January 1, to the Governor,
247	President of the Senate, and Speaker of the House of
248	Representatives outlining the return on investment to the state
249	on funds expended.
250	Section 5. This act shall take effect July 1, 2003.