Bill Text: HB 1149, Engrossed 1

HB 1149, Engrossed 1

2003

A bill to be entitled

An act relating to economic development; amending s.

288.125, F.S.; expanding applicability of the definition

of the term "entertainment industry"; creating s.

288.1254, F.S.; creating a program under which certain

persons producing, or providing services for the

production of, filmed entertainment are eligible for state

financial incentives for activities in or relocated to

this state; prescribing powers and duties of the Office of

Tourism, Trade, and Economic Development and the Office of

Film and Entertainment with respect to the program;

defining terms; providing an application procedure and

approval process; prescribing limits on reimbursement;

requiring documentation for requested reimbursement;

providing for policies and procedures; providing penalties

for fraudulent claims for reimbursement; requiring a

report; providing that funding is subject to

appropriation; providing an effective date.

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

Section 1. Section 288.125, Florida Statutes, is amended

to read:

288.125 Definition of "entertainment industry".--For the

purposes of ss. 288.1251-288.1258~~ss. 288.1251-288.1253~~, the

term "entertainment industry" means those persons or entities

engaged in the operation of motion picture or television studios

or recording studios; those persons or entities engaged in the

preproduction, production, or postproduction of motion pictures,

made-for-TV motion pictures, television series, commercial

advertising, music videos, or sound recordings; and those

persons or entities providing products or services directly

related to the preproduction, production, or postproduction of

motion pictures, made-for-TV motion pictures, television series,

commercial advertising, music videos, or sound recordings,

including, but not limited to, the broadcast industry.

Section 2. Section 288.1254, Florida Statutes, is created

to read:

288.1254 Entertainment industry financial incentive

program; creation; purpose; definitions; application procedure;

approval process; reimbursement eligibility; submission of

required documentation; recommendations for payment; policies

and procedures; fraudulent claims.--

(1) CREATION AND PURPOSE OF PROGRAM.--Subject to specific

appropriation, there is created within the Office of Film and

Entertainment an entertainment industry financial incentive

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

this state as a site for filming, and for providing production

services for, motion pictures, made-for-television movies,

commercials, music videos, industrial and educational films, and

television programs by the entertainment industry.

(2) DEFINITIONS.--As used in this section, the term:

(a) "Filmed entertainment" means a motion picture,

teleproduction, commercial, music video, or digital-media-

effects production to be sold or displayed in an electronic

medium.

(b) "Production costs" means the total cost of producing

filmed entertainment.

leased or services purchased, leased, or employed from a

resident of this state or a vendor or supplier who is located

and doing business in this state.

(d) "Qualified production" means filmed entertainment that

makes expenditures in this state for the total or partial

production of a motion picture, made-for-television movie with a

running time of 90 minutes or more, commercial, music video,

industrial and educational film, television series pilot, or

television episode. Productions that are deemed by the Office of

Film and Entertainment to contain obscene content, as defined by

the United States Supreme Court, shall not be considered

qualified productions.

(e) "Qualified relocation project" means a corporation,

limited liability company, partnership, corporate headquarters,

or other private entity that is domiciled in another state or

country and relocates its operations to this state, is organized

under the laws of this or any other state or country, and

includes as one of its primary purposes digital-media-effects or

motion picture and television production, or postproduction.

(3) APPLICATION PROCEDURE; APPROVAL PROCESS.--

(a) Any company engaged in this state in producing filmed

entertainment may submit an application to the Office of Film

and Entertainment for the purpose of determining qualification

for receipt of reimbursement provided in this section. The

office must be provided information required to determine if the

production is a qualified production and to determine the

qualified expenditures, production costs, and other information

necessary for the office to determine both eligibility for and

level of reimbursement.

(b) A digital-media-effects company in the state which

furnishes digital material to a qualified production that is

certified by the Office of Film and Entertainment may submit an

application to the Office of Film and Entertainment for the

purpose of determining qualification for receipt of

reimbursement authorized by this section. The office must be

provided information required to determine if the company is

qualified and to determine the amount of reimbursement.

partnership, corporate headquarters, or other private entity

domiciled in another state which includes as one of its primary

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purposes digital-media-effects or motion picture and television

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production and which is considering relocation to this state may

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submit an application to the Office of Film and Entertainment

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for the purpose of determining qualification for reimbursement

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under this section.

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(d)1. The Office of Film and Entertainment shall establish

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a process by which an application is accepted and reviewed and

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reimbursement eligibility and reimbursement amount are

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determined. The Office of Film and Entertainment may request

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assistance from a duly appointed local film commission in

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determining qualifications for reimbursement and compliance.

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2. Upon determination that all criteria are met for

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qualification for reimbursement, the office shall notify the

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applicant of such approval. The office shall also notify the

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Office of Tourism, Trade, and Economic Development of the

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applicant approval and amount of reimbursement required. The

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Office of Tourism, Trade, and Economic Development shall make

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final determination for actual reimbursement.

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3. The Office of Film and Entertainment shall deny an

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application if it determines that:

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a. The application is not complete or does not meet the

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requirements of this section; or

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b. The reimbursement sought does not meet the requirements

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of this section for such reimbursement.

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(e) The Office of Film and Entertainment shall develop a

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standardized application form for use in approving a qualified

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production, a qualified relocation project, or a company

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qualifying under paragraph (b). The application form must

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include, but is not limited to, production-related information

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on employment, proposed total production budgets, planned

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expenditures in this state which are intended for use

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exclusively as an integral part of preproduction, production, or

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postproduction activities engaged in primarily in this state,

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and a signed affirmation from the Office of Film and

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Entertainment that the information on the application form has

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been verified and is correct. The application form shall be

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distributed to applicants by the Office of Film and

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Entertainment or local film commissions.

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(f) The Office of Film and Entertainment must complete its

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review of each application within 5 days after receipt of the

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completed application, including all required information, and

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it must notify the applicant of its determination within 10

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business days after receipt of the completed application and

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required information.

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(4) REIMBURSEMENT ELIGIBILITY; SUBMISSION OF REQUIRED

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DOCUMENTATION; RECOMMENDATIONS FOR PAYMENT.--

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(a) A qualified production that is certified by the Office

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of Film and Entertainment is eligible for the following

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financial incentives from the state:

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1. A reimbursement of up to 15 percent of its qualifying

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expenditures in this state on that motion picture, made-for-

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television movie with a running time of 90 minutes or more,

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commercial, music video, industrial film, educational film,

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television series pilot, or television episode that demonstrates

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a minimum of $850,000 in total qualified expenditures. However,

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the maximum reimbursement that may be made with respect to a

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motion picture is $2 million, the maximum reimbursement that may

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be made with respect to a made-for-television movie or

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television series pilot with a running time of 90 minutes or

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more is $450,000, the maximum reimbursement that may be made

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with respect to any single television series pilot or television

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episode is $150,000, the maximum reimbursement that may be made

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with respect to a music video or commercial is $25,000, and the

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maximum reimbursement that may be made with respect to an

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industrial film or an educational film is $15,000. All noted

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reimbursements are subject to appropriation. Payments under this

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section in a fiscal year shall be made on a first-come, first-

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served basis until the appropriation for that fiscal year is

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exhausted. Subject to subsequent appropriations, the eligibility

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of qualified productions shall carry over from year to year. The

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Office of Film and Entertainment shall develop a procedure to

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ensure that qualified productions continue on a reasonable

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schedule until completion. If a qualified production is not

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continued according to a reasonable schedule, the office shall

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withdraw its eligibility and reallocate the funds to other

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qualified productions.

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2. Qualified expenditures for which reimbursement shall be

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made include salaries and employment benefits paid for services

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rendered in this state; rents for real and personal property

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used in the production; payments for preproduction, production,

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postproduction, and digital-media-effects services rendered in

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this state; and cost of set construction. Reimbursement may not

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be authorized for salaries of the two highest-paid actors.

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Salaries of other actors are reimbursable.

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(b) A digital-media-effects company in the state which

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furnishes digital material to a qualified production that is

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certified by the Office of Film and Entertainment may be

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eligible for a payment in an amount not to exceed 5 percent of

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its annual gross revenues on qualified expenditures listed in

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subparagraph(a)2. before taxes or $100,000, whichever is less. A

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company applying for payment must submit documentation annually

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as required by the Office of Film and Entertainment for

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determination of eligibility of claimed billing and

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determination of the amount of payment for which the company is

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eligible.

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the Office of Film and Entertainment is eligible for a one-time

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incentive payment in an amount equal to 5 percent of its annual

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gross revenues before taxes for the first 12 months of

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conducting business in its Florida domicile or $200,000,

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whichever is less. A company applying for payment must submit

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documentation as required by the Office of Film and

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Entertainment for determination of eligibility of claimed

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billing and determination of the amount of payment for which the

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company is eligible.

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(d) A qualified production, a digital-media-effects

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company, or a qualified relocation project applying for a

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payment under this section must submit documentation for claimed

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qualified expenditures to the Office of Film and Entertainment.

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(e) The Office of Film and Entertainment shall notify the

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Office of Tourism, Trade, and Economic Development whether an

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applicant meets the criteria for reimbursement and shall

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recommend the reimbursement amount. The Office of Tourism,

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Trade, and Economic Development shall make the final

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determination for actual reimbursement.

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(5) POLICIES AND PROCEDURES.--The Office of Tourism,

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Trade, and Economic Development shall adopt policies and

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procedures to implement this section, including, but not limited

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to, requirements for the application and approval process,

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records required for submission for substantiation for

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reimbursement, and determination of and qualification for

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reimbursement.

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(6) FRAUDULENT CLAIMS.--An eligible entity or company that

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obtains a payment under this section through a claim that it

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knows is fraudulent is liable for reimbursement of the amount

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paid plus a penalty in an amount double the payment and

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reimbursement of reasonable costs, which penalty is in addition

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to any criminal penalty to which the entity or company is liable

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

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costs and fees incurred by the state in investigating and

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prosecuting the fraudulent claim.

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(7) ANNUAL REPORT.--The Office of Film and Entertainment

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shall provide an annual report, due January 1, to the Governor,

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the President of the Senate, and the Speaker of the House of

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Representatives outlining the return on investment to the state

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on funds expended pursuant to this section.

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Section 3. Annual funding for the entertainment industry

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financial incentive program is subject to legislative

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appropriation.

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Section 4. This act shall take effect July 1, 2003.