HB 1129

CS

CHAMBER ACTION

1	The Tourism Committee recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to economic development; amending s.
7	288.125, F.S.; changing the term "television series" to
8	"television programming" for purposes of the definition of
9	the term "entertainment industry" in provisions
10	establishing the Office of Film and Entertainment within
11	the Office of Tourism, Trade, and Economic Development;
12	amending s. 288.1254, F.S.; revising a program under which
13	certain persons producing, or providing services for the
14	production of, filmed entertainment are eligible for state
15	financial incentives for activities in or relocated to
16	this state; revising definitions; revising application
17	procedures and requirements; revising application approval
18	provisions; revising reimbursement eligibility criteria
19	and requirements; revising limits on reimbursement;
20	revising the due date for the annual report to be
21	submitted to the Governor and the Legislature; providing
22	an effective date.
23
24	Be It Enacted by the Legislature of the State of Florida:
25
26	Section 1.  Section 288.125, Florida Statutes, is amended
27	to read:
28	288.125  Definition of "entertainment industry".--For the
29	purposes of ss. 288.1251-288.1258, the term "entertainment
30	industry" means those persons or entities engaged in the
31	operation of motion picture or television studios or recording
32	studios; those persons or entities engaged in the preproduction,
33	production, or postproduction of motion pictures, made-for-
34	television movies made-for-TV motion pictures, television
35	programming series, commercial advertising, music videos, or
36	sound recordings; and those persons or entities providing
37	products or services directly related to the preproduction,
38	production, or postproduction of motion pictures, made-for-
39	television movies made-for-TV  motion pictures, television
40	programming series, commercial advertising, music videos, or
41	sound recordings, including, but not limited to, the broadcast
42	industry.
43	Section 2.  Subsections (1), (2), (3), (4), and (7) of
44	section 288.1254, Florida Statutes, are amended to read:
45	288.1254  Entertainment industry financial incentive
46	program; creation; purpose; definitions; application procedure;
47	approval process; reimbursement eligibility; submission of
48	required documentation; recommendations for payment; policies
49	and procedures; fraudulent claims.--
50	(1)  CREATION AND PURPOSE OF PROGRAM.--Subject to specific
51	appropriation, there is created within the Office of Film and
52	Entertainment an entertainment industry financial incentive
53	program. The purpose of this program is to encourage the use of
54	this state as a site for filming, and for providing production
55	services for filmed entertainment, motion pictures, made-for-
56	television movies, commercials, music videos, industrial and
57	educational films, and television programs by the entertainment
58	industry.
59	(2)  DEFINITIONS.--As used in this section, the term:
60	(a)  "Filmed entertainment" means a theatrical or
61	direct-to-video motion picture, a made-for-television motion
62	picture teleproduction, a commercial, a music video, an
63	industrial or educational film, a promotional video or film, a
64	documentary film, a television pilot, a presentation for a
65	television pilot, a television series, including, but not
66	limited to, a drama, a reality, a comedy, a soap opera, a
67	telenovella, a game show, and a miniseries production, or a
68	digital-media-effects production by the entertainment industry
69	to be sold or displayed in an electronic medium. As used in this
70	paragraph, the term "motion picture" means a motion picture made
71	on or by film, tape, or otherwise and produced by means of a
72	motion picture camera, electronic camera or device, tape device,
73	any combination of the foregoing, or any other means, method, or
74	device now used or which may hereafter be adopted. As used in
75	this paragraph, the term "digital-media-effects" means visual
76	elements created through the modification of already existing or
77	newly created visual elements for film, video, or animated media
78	through the use of digital 2D/3D animation or painting, motion
79	capture, or compositing technologies. For purposes of this
80	section, the term "filmed entertainment" does not include the
81	electronic gaming industry or sporting events.
82	(b)  "Production costs" means the costs of real, tangible,
83	and intangible property used and services performed in the
84	production, including preproduction and postproduction, of
85	qualified filmed entertainment. Production costs generally
86	include, but are not limited to:
87	1.  Wages, salaries, or other compensation for technical
88	and production crews, directors, producers, and performers who
89	are residents of this state.
90	2.  Expenditures for sound stages, backlots, production
91	editing, digital effects, sound recordings, sets, and set
92	construction.
93	3.  Expenditures for rental equipment, including, but not
94	limited to, cameras and grip or electrical equipment.
95	4.  Expenditures for meals, travel, accommodations, and
96	goods used in producing filmed entertainment that is located and
97	doing business in this state total cost of producing filmed
98	entertainment.
99	(c)  "Qualified expenditures" means production costs for
100	goods purchased or leased or services purchased, leased, or
101	employed from a resident of this state or a vendor or supplier
102	who is located and doing business in this state, but excluding
103	wages, salaries, or other compensation paid to the two highest-
104	paid employees.
105	(d)  "Qualified production" means filmed entertainment that
106	makes expenditures in this state for the total or partial
107	production of filmed entertainment a motion picture, made-for-
108	television movie with a running time of 90 minutes or more,
109	commercial, music video, industrial and educational film,
110	television series pilot, or television episode. Productions that
111	are deemed by the Office of Film and Entertainment to contain
112	obscene content, as defined by the United States Supreme Court,
113	are shall not be considered qualified productions. Also, a
114	production is not a qualified production if it is determined
115	that the first day of principal photography in this state
116	occurred on or before the date of submitting its application to
117	the Office of Film and Entertainment or prior to certification
118	by the Office of Tourism, Trade, and Economic Development.
119	(e)  "Qualified relocation project" means a corporation,
120	limited liability company, partnership, corporate headquarters,
121	or other private entity that is domiciled in another state or
122	country and relocates its operations to this state, is organized
123	under the laws of this or any other state or country, and
124	includes as one of its primary purposes digital-media-effects or
125	motion picture and television production, or postproduction.
126	(3)  APPLICATION PROCEDURE; APPROVAL PROCESS.--
127	(a)  Any company engaged in this state in producing filmed
128	entertainment may submit an application to the Office of Film
129	and Entertainment for the purpose of determining qualification
130	for receipt of reimbursement provided in this section. The
131	office must be provided information required to determine if the
132	production is a qualified production and to determine the
133	qualified expenditures, production costs, and other information
134	necessary for the office to determine both eligibility for and
135	level of reimbursement.
136	(b)  A digital-media-effects company in the state which
137	furnishes digital material to filmed entertainment a qualified
138	production that is certified by the Office of Film and
139	Entertainment may submit an application to the Office of Film
140	and Entertainment for the purpose of determining qualification
141	for receipt of reimbursement authorized by this section. The
142	office must be provided information required to determine if the
143	company is qualified and to determine the amount of
144	reimbursement.
145	(c)  Any corporation, limited liability company,
146	partnership, corporate headquarters, or other private entity
147	domiciled in another state which includes as one of its primary
148	purposes digital-media-effects or motion picture and television
149	production and which is considering relocation to this state may
150	submit an application to the Office of Film and Entertainment
151	for the purpose of determining qualification for reimbursement
152	under this section.
153	(d)1.  The Office of Film and Entertainment shall establish
154	a process by which an application is accepted and reviewed and
155	reimbursement eligibility and reimbursement amount are
156	determined. The Office of Film and Entertainment may request
157	assistance from a duly appointed local film commission in
158	determining qualifications for reimbursement and compliance.
159	2.  The Office of Film and Entertainment shall develop a
160	standardized application form for use in approving a qualified
161	production, a qualified relocation project, or a company
162	qualifying under paragraph (a), paragraph (b), or paragraph (c).
163	The application form must include, but need not be limited to,
164	production-related information on employment, proposed total
165	production budgets, planned expenditures in this state which are
166	intended for use exclusively as an integral part of
167	preproduction, production, or postproduction activities engaged
168	primarily in this state, and a signed affirmation from the
169	Office of Film and Entertainment that the information on the
170	application form has been verified and is correct. The
171	application form shall be distributed to applicants by the
172	Office of Film and Entertainment or local film commissions.
173	3.  The Office of Film and Entertainment must complete its
174	review of each application within 5 days after receipt of the
175	completed application, including all required information, and
176	it must notify the applicant of its determination within 10
177	business days after receipt of the completed application and
178	required information.
179	4.2.  Upon determination that all criteria are met for
180	qualification for reimbursement, the Office of Film and
181	Entertainment shall notify the applicant of such approval. The
182	office shall also notify the Office of Tourism, Trade, and
183	Economic Development of the applicant approval and amount of
184	reimbursement required. The Office of Tourism, Trade, and
185	Economic Development shall make final determination for actual
186	reimbursement.
187	5.3.  The Office of Film and Entertainment shall deny an
188	application if it determines that:
189	a.  The application is not complete or does not meet the
190	requirements of this section; or
191	b.  The reimbursement sought does not meet the requirements
192	of this section for such reimbursement.
193	(e)  The Office of Film and Entertainment shall develop a
194	standardized application form for use in approving a qualified
195	production, a qualified relocation project, or a company
196	qualifying under paragraph (b). The application form must
197	include, but is not limited to, production-related information
198	on employment, proposed total production budgets, planned
199	expenditures in this state which are intended for use
200	exclusively as an integral part of preproduction, production, or
201	postproduction activities engaged in primarily in this state,
202	and a signed affirmation from the Office of Film and
203	Entertainment that the information on the application form has
204	been verified and is correct. The application form shall be
205	distributed to applicants by the Office of Film and
206	Entertainment or local film commissions.
207	(f)  The Office of Film and Entertainment must complete its
208	review of each application within 5 days after receipt of the
209	completed application, including all required information, and
210	it must notify the applicant of its determination within 10
211	business days after receipt of the completed application and
212	required information.
213	(4)  REIMBURSEMENT ELIGIBILITY; SUBMISSION OF REQUIRED
214	DOCUMENTATION; RECOMMENDATIONS FOR PAYMENT.--
215	(a)  A qualified production that is qualified certified by
216	the Office of Film and Entertainment and is certified by the
217	Office of Tourism, Trade, and Economic Development is eligible
218	for the following financial incentives from the state:
219	1.  a reimbursement of up to 15 percent of its qualifying
220	expenditures in this state on a filmed entertainment program
221	that motion picture, made-for-television movie with a running
222	time of 90 minutes or more, commercial, music video, industrial
223	film, educational film, television series pilot, or television
224	episode that demonstrates a minimum of $850,000 in total
225	qualified expenditures for the entire run of the project, versus
226	the budget on a single episode, within the fiscal year from July
227	1 to June 30. However, the maximum reimbursement that may be
228	made with respect to any filmed entertainment program a motion
229	picture is $2 million, the maximum reimbursement that may be
230	made with respect to a made-for-television movie or television
231	series pilot with a running time of 90 minutes or more is
232	$450,000, the maximum reimbursement that may be made with
233	respect to any single television series pilot or television
234	episode is $150,000, the maximum reimbursement that may be made
235	with respect to a music video or commercial is $25,000, and the
236	maximum reimbursement that may be made with respect to an
237	industrial film or an educational film is $15,000. All noted
238	reimbursements under this section are subject to appropriation.
239	Payments under this section in a fiscal year shall be made to
240	qualified productions according to a production's principal
241	photography start date, for those qualified productions having
242	entered into the first queue as cited in subparagraph 1. or the
243	second queue cited in subparagraph 2. within the first 2 weeks
244	after the queue's opening. All other qualified productions
245	entering into either queue after the initial 2-week openings
246	shall be on a first-come, first-served basis until the
247	appropriation for that fiscal year is exhausted. On February 1
248	of each year, the remaining funds within both queues shall be
249	combined into a single queue and distributed based on a
250	project's principal photography start date. Subject to
251	subsequent appropriations, The eligibility of qualified
252	productions may not shall carry over from year to year but such
253	productions may reapply for eligibility under the guidelines
254	established for doing so. The Office of Film and Entertainment
255	shall develop a procedure to ensure that qualified productions
256	continue on a reasonable schedule until completion. If a
257	qualified production is not continued according to a reasonable
258	schedule, the office shall withdraw its eligibility and
259	reallocate the funds to the next other qualified productions
260	already in the queue that have yet to receive their full maximum
261	or 15-percent financial reimbursement, if they have not started
262	principal photography by the time the funds become available.
263	1.  Theatrical or direct-to-video motion pictures, made-
264	for-television movies, commercials, music videos, industrial and
265	educational films, promotional videos or films, documentary
266	films, television specials, and digital-media-effects
267	productions by the entertainment industry to be sold or
268	displayed in an electronic medium shall have their own separate
269	queue established, and such queue shall have dedicated to it 60
270	percent of all of the state incentive money.
271	2.  Television pilots, presentations for television pilots,
272	or television series, including, but not limited to, drama,
273	reality, comedy, soap opera, telenovella, game show, or
274	miniseries productions, by the entertainment industry to be sold
275	or displayed in an electronic medium shall have their own
276	separate queue established, and such queue shall have dedicated
277	to it 40 percent of all of the state incentive money. Qualified
278	expenditures for which reimbursement shall be made include
279	salaries and employment benefits paid for services rendered in
280	this state; rents for real and personal property used in the
281	production; payments for preproduction, production,
282	postproduction, and digital-media-effects services rendered in
283	this state; and cost of set construction. Reimbursement may not
284	be authorized for salaries of the two highest-paid actors.
285	Salaries of other actors are reimbursable.
286	(b)  A digital-media-effects company in the state which
287	furnishes digital material to filmed entertainment a qualified
288	production that is certified by the Office of Film and
289	Entertainment may be eligible for a payment in an amount not to
290	exceed 5 percent of its annual gross revenues on qualified
291	expenditures as defined listed in paragraph (2)(c)
292	subparagraph(a)2. before taxes or $100,000, whichever is less. A
293	company applying for payment must submit documentation annually
294	as required by the Office of Film and Entertainment for
295	determination of eligibility of claimed billing and
296	determination of the amount of payment for which the company is
297	eligible.
298	(c)  A qualified relocation project that is certified by
299	the Office of Film and Entertainment is eligible for a one-time
300	incentive payment in an amount equal to 5 percent of its annual
301	gross revenues before taxes for the first 12 months of
302	conducting business in its Florida domicile or $200,000,
303	whichever is less. A company applying for payment must submit
304	documentation as required by the Office of Film and
305	Entertainment for determination of eligibility of claimed
306	billing and determination of the amount of payment for which the
307	company is eligible.
308	(d)  A qualified production, a digital-media-effects
309	company, or a qualified relocation project applying for a
310	payment under this section must submit documentation for claimed
311	qualified expenditures to the Office of Film and Entertainment.
312	(e)  The Office of Film and Entertainment shall notify the
313	Office of Tourism, Trade, and Economic Development whether an
314	applicant meets the criteria for reimbursement and shall
315	recommend the reimbursement amount. The Office of Tourism,
316	Trade, and Economic Development shall make the final
317	determination for actual reimbursement.
318	(7)  ANNUAL REPORT.--The Office of Film and Entertainment
319	shall provide an annual report for the previous fiscal year, due
320	October January 1, to the Governor, the President of the Senate,
321	and the Speaker of the House of Representatives outlining the
322	return on investment to the state on funds expended pursuant to
323	this section.
324	Section 3.  This act shall take effect July 1, 2005.

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