Senate Bill sb1756

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2003                                  SB 1756

    By Senator Saunders





    37-85C-03

  1                      A bill to be entitled

  2         An act relating to economic development;

  3         amending s. 288.125, F.S.; expanding

  4         applicability of the definition of the term

  5         "entertainment industry" and redefining the

  6         term; creating s. 288.1254, F.S.; creating a

  7         program under which certain persons producing,

  8         or providing services for the production of,

  9         filmed entertainment are eligible for state

10         financial incentives for activities in or

11         relocated to this state; prescribing powers and

12         duties of the Office of Tourism, Trade, and

13         Economic Development and the Office of Film and

14         Entertainment with respect to the program;

15         defining terms; providing an application

16         procedure and approval process; prescribing

17         limits on reimbursement; requiring

18         documentation for requested reimbursement;

19         providing for policies and procedures;

20         providing penalties for fraudulent claims for

21         reimbursement; providing an appropriation;

22         requiring a report; providing an effective

23         date.

24

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

26

27         Section 1.  Section 288.125, Florida Statutes, is

28  amended to read:

29         288.125  Definition of "entertainment industry".--For

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

31  the term "entertainment industry" means those persons or

                                  1

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






    Florida Senate - 2003                                  SB 1756
    37-85C-03




  1  entities engaged in the operation of motion picture or

  2  television studios or recording studios; those persons or

  3  entities engaged in the preproduction, production, or

  4  postproduction of motion pictures, made-for-TV motion

  5  pictures, television series, commercial advertising, or music

  6  videos, or sound recordings; and those persons or entities

  7  providing products or services directly related to the

  8  preproduction, production, or postproduction of motion

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

10  commercial advertising, or music videos, or sound recordings,

11  including, but not limited to, the broadcast industry.

12         Section 2.  Section 288.1254, Florida Statutes, is

13  created to read:

14         288.1254  Entertainment industry financial incentive

15  program; creation; purpose; definitions; application

16  procedure; approval process; reimbursement eligibility;

17  submission of required documentation; recommendations for

18  payment; policies and procedures; fraudulent claims.--

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

20  specific appropriation, there is created within the Office of

21  Tourism, Trade, and Economic Development an entertainment

22  industry financial incentive program. The purpose of this

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

24  filming, and for providing production services for, motion

25  pictures, made-for-television movies, commercials, music

26  videos, industrial and educational films, and television

27  programs by the entertainment industry.

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

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

30  teleproduction, commercial, music video, or

31

                                  2

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






    Florida Senate - 2003                                  SB 1756
    37-85C-03




  1  digital-media-effects production to be sold or displayed in an

  2  electronic medium.

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

  4  producing filmed entertainment.

  5         (c)  "Qualified expenditures" means goods purchased or

  6  leased or services purchased, leased, or employed from a

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

  8  and doing business in this state.

  9         (d)  "Qualified production" means filmed entertainment

10  that makes expenditures in this state for the total or partial

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

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

13  industrial and educational film, television series pilot, or

14  television episode. Productions that are deemed by the Office

15  of Film and Entertainment to contain obscene content, as

16  defined by the United States Supreme Court, shall not be

17  considered qualified productions.

18         (e)  "Qualified relocation project" means a

19  corporation, limited liability company, partnership, corporate

20  headquarters, or other private entity that is domiciled in

21  another state or country and relocates its operations to this

22  state, is organized under the laws of this or any other state

23  or country, and includes as one of its primary purposes

24  digital-media-effects or motion picture and television

25  production, or postproduction.

26         (3)  APPLICATION PROCEDURE; APPROVAL PROCESS.--

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

28  filmed entertainment may submit an application to the Office

29  of Film and Entertainment for the purpose of determining

30  qualification for receipt of reimbursement provided in this

31  section. The office must be provided information required to

                                  3

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






    Florida Senate - 2003                                  SB 1756
    37-85C-03




  1  determine if the production is a qualified production and to

  2  determine the qualified expenditures, production costs, and

  3  other information necessary for the office to determine both

  4  eligibility for and level of reimbursement.

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

  6  furnishes digital material to a qualified production that is

  7  certified by the Office of Film and Entertainment may submit

  8  an application to the Office of Film and Entertainment for the

  9  purpose of determining qualification for receipt of

10  reimbursement authorized by this section. The office must be

11  provided information required to determine if the company is

12  qualified and to determine the amount of reimbursement.

13         (c)  Any corporation, limited liability company,

14  partnership, corporate headquarters, or other private entity

15  domiciled in another state which includes as one of its

16  primary purposes digital-media-effects or motion picture and

17  television production and which is considering relocation to

18  this state may submit an application to the Office of Film and

19  Entertainment for the purpose of determining qualification for

20  reimbursement under this section.

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

22  establish a process by which an application is accepted and

23  reviewed and reimbursement eligibility and reimbursement

24  amount are determined. The Office of Film and Entertainment

25  may, when appropriate, delegate to a duly appointed local film

26  commission the responsibility for determining qualifications

27  for reimbursement and compliance.

28         2.  Upon determination that all criteria are met for

29  qualification for reimbursement, the office shall notify the

30  applicant of such approval. The office shall also notify the

31  Office of Tourism, Trade, and Economic Development of the

                                  4

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






    Florida Senate - 2003                                  SB 1756
    37-85C-03




  1  applicant approval and amount of reimbursement required. The

  2  Office of Tourism, Trade, and Economic Development shall make

  3  final determination for actual reimbursement.

  4         3.  The Office of Film and Entertainment shall deny an

  5  application if it determines that:

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

  7  the requirements of this section; or

  8         b.  The reimbursement sought does not meet the

  9  requirements of this section for such reimbursement.

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

11  a standardized application form for use in approving a

12  qualified production, a qualified relocation project, or a

13  company qualifying under paragraph (b). The application form

14  must include, but is not limited to, production-related

15  information on employment, proposed total production budgets,

16  planned expenditures in this state which are intended for use

17  exclusively as an integral part of preproduction, production,

18  or postproduction activities engaged in primarily in this

19  state, and a signed affirmation from the Office of Film and

20  Entertainment that the information on the application form has

21  been verified and is correct. The application form shall be

22  distributed to applicants by the Office of Film and

23  Entertainment or local film commissions.

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

25  its review of each application within 5 days after receipt of

26  the completed application, including all required information,

27  and it must notify the applicant of its determination within

28  10 business days after receipt of the completed application

29  and required information.

30         (4)  REIMBURSEMENT ELIGIBILITY; SUBMISSION OF REQUIRED

31  DOCUMENTATION; RECOMMENDATIONS FOR PAYMENT.--

                                  5

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






    Florida Senate - 2003                                  SB 1756
    37-85C-03




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

  2  Office of Film and Entertainment is eligible for the following

  3  financial incentives from the state:

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

  5  qualifying expenditures within this state on that motion

  6  picture, made-for-television movie with a running time of 90

  7  minutes or more, commercial, music video, industrial film,

  8  educational film, television series pilot, or television

  9  episode that demonstrates a minimum of $850,000 in total

10  qualified expenditures. However, the maximum reimbursement

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

12  million, the maximum reimbursement that may be made with

13  respect to a made-for-television movie or television series

14  pilot with a running time of 90 minutes or more is $450,000,

15  the maximum reimbursement that may be made with respect to any

16  single television series pilot or television episode is

17  $150,000, the maximum reimbursement that may be made with

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

19  maximum reimbursement that may be made with respect to an

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

21  reimbursements are subject to appropriation. Payments under

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

23  first-served basis until the appropriation for that fiscal

24  year is exhausted. Subject to subsequent appropriations, the

25  eligibility of qualified productions shall carry over from

26  year to year. The Office of Film and Entertainment shall

27  develop a procedure to ensure that qualified productions

28  continue on a reasonable schedule until completion. If a

29  qualified production is not continued according to a

30  reasonable schedule, the office shall withdraw its eligibility

31  and reallocate the funds to other qualified productions.

                                  6

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






    Florida Senate - 2003                                  SB 1756
    37-85C-03




  1         2.  Qualified expenditures for which reimbursement

  2  shall be made include salaries and employment benefits paid

  3  for services rendered within this state; rents for real and

  4  personal property used in the production; payments for

  5  preproduction, production, postproduction, and

  6  digital-media-effects services rendered within this state; and

  7  cost of set construction. Reimbursement may not be authorized

  8  for salaries of the two highest-paid actors. Salaries of other

  9  actors are reimbursable.

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

11  furnishes digital material to a qualified production that is

12  certified by the Office of Film and Entertainment may be

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

14  its annual gross revenues on qualified expenditures listed in

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

16  less. A company applying for payment must submit documentation

17  annually as required by the Office of Film and Entertainment

18  for determination of eligibility of claimed billing and

19  determination of the amount of payment for which the company

20  is eligible.

21         (c)  A qualified relocation project that is certified

22  by the Office of Film and Entertainment is eligible for a

23  one-time incentive payment in an amount equal to 5 percent of

24  its annual gross revenues before taxes for the first 12 months

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

26  whichever is less. A company applying for payment must submit

27  documentation as required by the Office of Film and

28  Entertainment for determination of eligibility of claimed

29  billing and determination of the amount of payment for which

30  the company is eligible.

31

                                  7

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






    Florida Senate - 2003                                  SB 1756
    37-85C-03




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

  2  company, or a qualified relocation project applying for a

  3  payment under this section must submit documentation for

  4  claimed qualified expenditures to the Office of Film and

  5  Entertainment.

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

  7  the Office of Tourism, Trade, and Economic Development whether

  8  an applicant meets the criteria for reimbursement and shall

  9  recommend the reimbursement amount. The Office of Tourism,

10  Trade, and Economic Development shall make the final

11  determination for actual reimbursement.

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

13  Trade, and Economic Development shall adopt policies and

14  procedures to implement this section, including, but not

15  limited to, requirements for the application and approval

16  process, records required for submission for substantiation

17  for reimbursement, and determination of and qualification for

18  reimbursement.

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

20  that obtains a payment under this section through a claim that

21  it knows is fraudulent is liable for reimbursement of the

22  amount paid plus a penalty in an amount double the payment and

23  reimbursement of reasonable costs, 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 and fees incurred by the state in

27  investigating and prosecuting the fraudulent claim.

28         Section 3.  The sum of $20 million is appropriated from

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

30  Economic Development to implement this act in the 2003-2004

31  fiscal year. The Office of Tourism, Trade, and Economic

                                  8

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






    Florida Senate - 2003                                  SB 1756
    37-85C-03




  1  Development may use up to $50,000 for staff and administrative

  2  costs to implement this act.

  3         Section 4.  The Office of Film and Entertainment shall

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

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

  6  Representatives outlining the return on investment to the

  7  state on funds expended.

  8         Section 5.  This act shall take effect July 1, 2003.

  9

10            *****************************************

11                          SENATE SUMMARY

12    Creates a program under the Office of Tourism, Trade, and
      Economic Development under which certain producers of
13    filmed entertainment, as defined, may be eligible for
      reimbursement for certain expenditures made in this state
14    with respect to the entertainment produced. Further
      provides for reimbursement of certain costs incurred by
15    production entities that relocate to this state.
      Appropriates $20 million for the first year of the
16    program.

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  9

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