Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 1372
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CHAMBER ACTION
Senate House
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11 The Committee on Commerce and Consumer Services (Saunders)
12 recommended the following amendment:
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14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
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17 and insert:
18 Section 1. Section 288.125, Florida Statutes, is
19 amended to read:
20 288.125 Definition of "entertainment industry".--For
21 the purposes of ss. 288.1251-288.1258, the term "entertainment
22 industry" means those persons or entities engaged in the
23 operation of motion picture or television studios or recording
24 studios; those persons or entities engaged in the
25 preproduction, production, or postproduction of motion
26 pictures, made-for-television movies made-for-TV motion
27 pictures, television programming series, commercial
28 advertising, music videos, or sound recordings; and those
29 persons or entities providing products or services directly
30 related to the preproduction, production, or postproduction of
31 motion pictures, made-for-television movies
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1 made-for-TV motion pictures, television programming series,
2 commercial advertising, music videos, or sound recordings,
3 including, but not limited to, the broadcast industry.
4 Section 2. Subsections (1), (2), (3), (4), and (7) of
5 section 288.1254, Florida Statutes, are amended to read:
6 288.1254 Entertainment industry financial incentive
7 program; creation; purpose; definitions; application
8 procedure; approval process; reimbursement eligibility;
9 submission of required documentation; recommendations for
10 payment; policies and procedures; fraudulent claims.--
11 (1) CREATION AND PURPOSE OF PROGRAM.--Subject to
12 specific appropriation, there is created within the Office of
13 Film and Entertainment an entertainment industry financial
14 incentive program. The purpose of this program is to encourage
15 the use of this state as a site for filming, and for providing
16 production services for filmed entertainment, motion pictures,
17 made-for-television movies, commercials, music videos,
18 industrial and educational films, and television programs by
19 the entertainment industry.
20 (2) DEFINITIONS.--As used in this section, the term:
21 (a) "Filmed entertainment" means a theatrical or
22 direct-to-video motion picture, a made-for-television motion
23 picture teleproduction, a commercial, a music video, an
24 industrial or educational film, a promotional video or film, a
25 documentary film, a television pilot, a presentation for a
26 television pilot, a television series, including, but not
27 limited to, a drama, a reality, a comedy, a soap opera, a
28 telenovella, a game show, and a miniseries production, or a
29 digital-media-effects production by the entertainment industry
30 to be sold or displayed in an electronic medium. As used in
31 this paragraph, the term "motion picture" means a motion
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1 picture made on or by film, tape, or otherwise and produced by
2 means of a motion picture camera, electronic camera or device,
3 tape device, any combination of the foregoing, or any other
4 means, method, or device now used or which may hereafter be
5 adopted. As used in this paragraph, the term
6 "digital-media-effects" means visual elements created through
7 the modification of already existing or newly created visual
8 elements for film, video, or animated media through the use of
9 digital 2D/3D animation or painting, motion capture, or
10 compositing technologies. For purposes of this section, the
11 term "filmed entertainment" does not include the electronic
12 gaming industry or sporting events.
13 (b) "Production costs" means the costs of real,
14 tangible, and intangible property used and services performed
15 in the production, including preproduction and postproduction,
16 of qualified filmed entertainment. Production costs generally
17 include, but are not limited to:
18 1. Wages, salaries, or other compensation for
19 technical and production crews, directors, producers, and
20 performers who are residents of this state.
21 2. Expenditures for sound stages, backlots, production
22 editing, digital effects, sound recordings, sets, and set
23 construction.
24 3. Expenditures for rental equipment, including, but
25 not limited to, cameras and grip or electrical equipment.
26 4. Expenditures for meals, travel, accommodations, and
27 goods used in producing filmed entertainment that is located
28 and doing business in this state total cost of producing
29 filmed entertainment.
30 (c) "Qualified expenditures" means production costs
31 for goods purchased or leased or services purchased, leased,
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1 or employed from a resident of this state or a vendor or
2 supplier who is located and doing business in this state, but
3 excluding wages, salaries, or other compensation paid to the
4 two highest-paid employees.
5 (d) "Qualified production" means filmed entertainment
6 that makes expenditures in this state for the total or partial
7 production of filmed entertainment a motion picture,
8 made-for-television movie with a running time of 90 minutes or
9 more, commercial, music video, industrial and educational
10 film, television series pilot, or television episode.
11 Productions that are deemed by the Office of Film and
12 Entertainment to contain obscene content, as defined by the
13 United States Supreme Court, are shall not be considered
14 qualified productions. Also, a production is not a qualified
15 production if it is determined that the first day of principal
16 photography in this state occurred on or before the date of
17 submitting its application to the Office of Film and
18 Entertainment prior to certification by the Office of Tourism,
19 Trade, and Economic Development.
20 (e) "Qualified relocation project" means a
21 corporation, limited liability company, partnership, corporate
22 headquarters, or other private entity that is domiciled in
23 another state or country and relocates its operations to this
24 state, is organized under the laws of this or any other state
25 or country, and includes as one of its primary purposes
26 digital-media-effects or motion picture and television
27 production, or postproduction.
28 (3) APPLICATION PROCEDURE; APPROVAL PROCESS.--
29 (a) Any company engaged in this state in producing
30 filmed entertainment may submit an application to the Office
31 of Film and Entertainment for the purpose of determining
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1 qualification for receipt of reimbursement provided in this
2 section. The office must be provided information required to
3 determine if the production is a qualified production and to
4 determine the qualified expenditures, production costs, and
5 other information necessary for the office to determine both
6 eligibility for and level of reimbursement.
7 (b) A digital-media-effects company in the state which
8 furnishes digital material to filmed entertainment a qualified
9 production that is certified by the Office of Film and
10 Entertainment may submit an application to the Office of Film
11 and Entertainment for the purpose of determining qualification
12 for receipt of reimbursement authorized by this section. The
13 office must be provided information required to determine if
14 the company is qualified and to determine the amount of
15 reimbursement.
16 (c) Any corporation, limited liability company,
17 partnership, corporate headquarters, or other private entity
18 domiciled in another state which includes as one of its
19 primary purposes digital-media-effects or motion picture and
20 television production and which is considering relocation to
21 this state may submit an application to the Office of Film and
22 Entertainment for the purpose of determining qualification for
23 reimbursement under this section.
24 (d)1. The Office of Film and Entertainment shall
25 establish a process by which an application is accepted and
26 reviewed and reimbursement eligibility and reimbursement
27 amount are determined. The Office of Film and Entertainment
28 may request assistance from a duly appointed local film
29 commission in determining qualifications for reimbursement and
30 compliance.
31 2. The Office of Film and Entertainment shall develop
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1 a standardized application form for use in approving a
2 qualified production, a qualified relocation project, or a
3 company qualifying under paragraph (a), paragraph (b), or
4 paragraph (c). The application form must include, but need not
5 be limited to, production-related information on employment,
6 proposed total production budgets, planned expenditures in
7 this state which are intended for use exclusively as an
8 integral part of preproduction, production, or postproduction
9 activities engaged primarily in this state, and a signed
10 affirmation from the Office of Film and Entertainment that the
11 information on the application form has been verified and is
12 correct. The application form shall be distributed to
13 applicants by the Office of Film and Entertainment or local
14 film commissions.
15 3. The Office of Film and Entertainment must complete
16 its review of each application within 5 days after receipt of
17 the completed application, including all required information,
18 and it must notify the applicant of its determination within
19 10 business days after receipt of the completed application
20 and required information.
21 4.2. Upon determination that all criteria are met for
22 qualification for reimbursement, the Office of Film and
23 Entertainment shall notify the applicant of such approval. The
24 office shall also notify the Office of Tourism, Trade, and
25 Economic Development of the applicant approval and amount of
26 reimbursement required. The Office of Tourism, Trade, and
27 Economic Development shall make final determination for actual
28 reimbursement.
29 5.3. The Office of Film and Entertainment shall deny
30 an application if it determines that:
31 a. The application is not complete or does not meet
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1 the requirements of this section; or
2 b. The reimbursement sought does not meet the
3 requirements of this section for such reimbursement.
4 (e) The Office of Film and Entertainment shall develop
5 a standardized application form for use in approving a
6 qualified production, a qualified relocation project, or a
7 company qualifying under paragraph (b). The application form
8 must include, but is not limited to, production-related
9 information on employment, proposed total production budgets,
10 planned expenditures in this state which are intended for use
11 exclusively as an integral part of preproduction, production,
12 or postproduction activities engaged in primarily in this
13 state, and a signed affirmation from the Office of Film and
14 Entertainment that the information on the application form has
15 been verified and is correct. The application form shall be
16 distributed to applicants by the Office of Film and
17 Entertainment or local film commissions.
18 (f) The Office of Film and Entertainment must complete
19 its review of each application within 5 days after receipt of
20 the completed application, including all required information,
21 and it must notify the applicant of its determination within
22 10 business days after receipt of the completed application
23 and required information.
24 (4) REIMBURSEMENT ELIGIBILITY; SUBMISSION OF REQUIRED
25 DOCUMENTATION; RECOMMENDATIONS FOR PAYMENT.--
26 (a) A qualified production that is qualified certified
27 by the Office of Film and Entertainment and is certified by
28 the Office of Tourism, Trade, and Economic Development is
29 eligible for the following financial incentives from the
30 state:
31 1. a reimbursement of up to 15 percent of its
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1 qualifying expenditures in this state on a filmed
2 entertainment program that motion picture, made-for-television
3 movie with a running time of 90 minutes or more, commercial,
4 music video, industrial film, educational film, television
5 series pilot, or television episode that demonstrates a
6 minimum of $850,000 in total qualified expenditures for the
7 entire run of the project, versus the budget on a single
8 episode, within the fiscal year from July 1 to June 30.
9 However, the maximum reimbursement that may be made with
10 respect to any filmed entertainment program a motion picture
11 is $2 million, the maximum reimbursement that may be made with
12 respect to a made-for-television movie or television series
13 pilot with a running time of 90 minutes or more is $450,000,
14 the maximum reimbursement that may be made with respect to any
15 single television series pilot or television episode is
16 $150,000, the maximum reimbursement that may be made with
17 respect to a music video or commercial is $25,000, and the
18 maximum reimbursement that may be made with respect to an
19 industrial film or an educational film is $15,000. All noted
20 reimbursements under this section are subject to
21 appropriation. Payments under this section in a fiscal year
22 shall be made to qualified productions according to a
23 production's principal photography start date, for those
24 qualified productions having entered into the first queue as
25 cited in subparagraph 1. or the second queue cited in
26 subparagraph 2. within the first 2 weeks after the queue's
27 opening. All other qualified productions entering into either
28 queue after the initial 2-week openings shall be on a
29 first-come, first-served basis until the appropriation for
30 that fiscal year is exhausted. On February 1 of each year, the
31 remaining funds within both queues shall be combined into a
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1 single queue and distributed based on a project's principal
2 photography start date. Subject to subsequent appropriations,
3 The eligibility of qualified productions may not shall carry
4 over from year to year but such productions may reapply for
5 eligibility under the guidelines established for doing so. The
6 Office of Film and Entertainment shall develop a procedure to
7 ensure that qualified productions continue on a reasonable
8 schedule until completion. If a qualified production is not
9 continued according to a reasonable schedule, the office shall
10 withdraw its eligibility and reallocate the funds to the next
11 other qualified productions already in the queue that have yet
12 to receive their full maximum or 15-percent financial
13 reimbursement, if they have not started principal photography
14 by the time the funds become available.
15 1. Theatrical or direct-to-video motion pictures,
16 made-for-television movies, commercials, music videos,
17 industrial and educational films, promotional videos or films,
18 documentary films, television specials, and
19 digital-media-effects productions by the entertainment
20 industry to be sold or displayed in an electronic medium shall
21 have their own separate queue established, and such queue
22 shall have dedicated to it 60 percent of all of the state
23 incentive money.
24 2. Television pilots, presentations for television
25 pilots, or television series, including, but not limited to,
26 drama, reality, comedy, soap opera, telenovella, game show, or
27 miniseries productions, by the entertainment industry to be
28 sold or displayed in an electronic medium shall have their own
29 separate queue established, and such queue shall have
30 dedicated to it 40 percent of all of the state incentive
31 money. Qualified expenditures for which reimbursement shall be
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1 made include salaries and employment benefits paid for
2 services rendered in this state; rents for real and personal
3 property used in the production; payments for preproduction,
4 production, postproduction, and digital-media-effects services
5 rendered in this state; and cost of set construction.
6 Reimbursement may not be authorized for salaries of the two
7 highest-paid actors. Salaries of other actors are
8 reimbursable.
9 (b) A digital-media-effects company in the state which
10 furnishes digital material to filmed entertainment a qualified
11 production that is certified by the Office of Film and
12 Entertainment may be eligible for a payment in an amount not
13 to exceed 5 percent of its annual gross revenues on qualified
14 expenditures as defined listed in paragraph (2)(c)
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 (d) A qualified production, a digital-media-effects
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1 company, or a qualified relocation project applying for a
2 payment under this section must submit documentation for
3 claimed qualified expenditures to the Office of Film and
4 Entertainment.
5 (e) The Office of Film and Entertainment shall notify
6 the Office of Tourism, Trade, and Economic Development whether
7 an applicant meets the criteria for reimbursement and shall
8 recommend the reimbursement amount. The Office of Tourism,
9 Trade, and Economic Development shall make the final
10 determination for actual reimbursement.
11 (7) ANNUAL REPORT.--The Office of Film and
12 Entertainment shall provide an annual report for the previous
13 fiscal year, due October January 1, to the Governor, the
14 President of the Senate, and the Speaker of the House of
15 Representatives outlining the return on investment to the
16 state on funds expended pursuant to this section.
17 Section 3. This act shall take effect July 1, 2005.
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20 ================ T I T L E A M E N D M E N T ===============
21 And the title is amended as follows:
22 Delete everything before the enacting clause
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24 and insert:
25 A bill to be entitled
26 An act relating to economic development;
27 amending s. 288.125, F.S.; changing the term
28 "television series" to "television programming"
29 for purposes of the definition of the term
30 "entertainment industry" in provisions
31 establishing the Office of Film and
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Florida Senate - 2005 COMMITTEE AMENDMENT
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1 Entertainment within the Office of Tourism,
2 Trade, and Economic Development; amending s.
3 288.1254, F.S.; revising a program under which
4 certain persons producing, or providing
5 services for the production of, filmed
6 entertainment are eligible for state financial
7 incentives for activities in or relocated to
8 this state; revising definitions; revising
9 application procedures and requirements;
10 revising application approval provisions;
11 revising reimbursement eligibility criteria and
12 requirements; revising limits on reimbursement;
13 revising the due date for the annual report to
14 be submitted to the Governor and the
15 Legislature; providing an effective date.
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