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