HB 1129

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

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