Senate Bill sb1372

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2005                                  SB 1372

    By Senator Saunders





    37-833B-05

  1                      A bill to be entitled

  2         An act relating to economic development;

  3         amending s. 288.125, F.S.; changing the term

  4         "television series" to "television programming"

  5         for purposes of the definition of the term

  6         "entertainment industry" in provisions

  7         establishing the Office of Film and

  8         Entertainment within the Office of Tourism,

  9         Trade, and Economic Development; amending s.

10         288.1254, F.S.; revising a program under which

11         certain persons producing, or providing

12         services for the production of, filmed

13         entertainment are eligible for state financial

14         incentives for activities in or relocated to

15         this state; revising definitions; deleting a

16         provision that requires a digital-media-effects

17         company to be certified by the Office of Film

18         and Entertainment in order to submit an

19         application for qualification for receipt of

20         reimbursement; revising limits on

21         reimbursement; revising the due date for the

22         annual report to be submitted to the Governor

23         and the Legislature; providing an effective

24         date.

25  

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

27  

28         Section 1.  Section 288.125, Florida Statutes, is

29  amended to read:

30         288.125  Definition of "entertainment industry".--For

31  the purposes of ss. 288.1251-288.1258, the term "entertainment

                                  1

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






    Florida Senate - 2005                                  SB 1372
    37-833B-05




 1  industry" means those persons or entities engaged in the

 2  operation of motion picture or television studios or recording

 3  studios; those persons or entities engaged in the

 4  preproduction, production, or postproduction of motion

 5  pictures, made-for-TV motion pictures, television programming

 6  series, commercial advertising, music videos, or sound

 7  recordings; and those persons or entities providing products

 8  or services directly related to the preproduction, production,

 9  or postproduction of motion pictures, made-for-TV motion

10  pictures, television programming series, commercial

11  advertising, music videos, or sound recordings, including, but

12  not limited to, the broadcast industry.

13         Section 2.  Subsections (1), (2), (3), (4), and (7) of

14  section 288.1254, Florida Statutes, are amended to read:

15         288.1254  Entertainment industry financial incentive

16  program; creation; purpose; definitions; application

17  procedure; approval process; reimbursement eligibility;

18  submission of required documentation; recommendations for

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

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

21  specific appropriation, there is created within the Office of

22  Film and Entertainment an entertainment industry financial

23  incentive program. The purpose of this program is to encourage

24  the use of this state as a site for filming, and for providing

25  production services for filmed entertainment, motion pictures,

26  made-for-television movies, commercials, music videos,

27  industrial and educational films, and television programs by

28  the entertainment industry.

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

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

31  theatrical or direct to video, made-for-television movie

                                  2

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






    Florida Senate - 2005                                  SB 1372
    37-833B-05




 1  teleproduction, commercial, music video, industrial and

 2  educational films, promotional videos or films, documentary

 3  film, or television program or series, including, but not

 4  limited to, drama, reality, comedy, soap, telenovella, game

 5  show and miniseries, and or digital-media-effects production

 6  by the entertainment industry to be sold or displayed in an

 7  electronic medium. As used in this paragraph, the term "motion

 8  pictures" means and includes, and has always meant and

 9  included, motion pictures made on or by film, tape, or

10  otherwise and produced by means of motion picture cameras,

11  electronic cameras or devices, tape devices, any combination

12  of the foregoing, or any other means, methods, or devices now

13  used or which may hereafter be adopted. As used in this

14  paragraph, the term "digital-media-effects" means visual

15  elements created through the modification of already existing

16  or newly created visual elements for film, video, or animated

17  media through the use of digital 2D/3D animation or painting,

18  motion capture, or compositing technologies. The term "filmed

19  entertainment," for the purpose of the section, does not

20  include the electronic gaming industry or sporting events.

21         (b)  "Production costs" means the costs of real,

22  tangible, and intangible property used and services performed

23  in the production, including preproduction and postproduction,

24  of qualified filmed entertainment. Production costs generally

25  include, but are not limited to, wages, salaries, or other

26  compensation for technical and production crews, directors,

27  producers, performers who are residents of this state, and

28  expenditures for sound stages, backlots, production editing,

29  digital effects, sound recordings, sets and set construction,

30  rental equipment, including, but not limited to, cameras, grip

31  or electrical equipment, meals, travel, accommodations, and

                                  3

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






    Florida Senate - 2005                                  SB 1372
    37-833B-05




 1  other goods used in producing filmed entertainment which are

 2  located and doing business in this state total cost of

 3  producing filmed entertainment.

 4         (c)  "Qualified expenditures" means production costs

 5  for goods purchased or leased or services purchased, leased,

 6  or employed from a resident of this state or a vendor or

 7  supplier who is located and doing business in this state, but

 8  excluding wages, salaries, or other compensation paid to the

 9  two highest-paid employees.

10         (d)  "Qualified production" means filmed entertainment

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

12  production of filmed entertainment a motion picture,

13  made-for-television movie with a running time of 90 minutes or

14  more, commercial, music video, industrial and educational

15  film, television series pilot, or television episode.

16  Productions that are deemed by the Office of Film and

17  Entertainment to contain obscene content, as defined by the

18  United States Supreme Court, are shall not be considered

19  qualified productions. Also, productions already planned to

20  shoot in this state, which are determined by the first day of

21  principal photography in this state having started at the time

22  of submitting their application to the Office of Film and

23  Entertainment within that same fiscal year in this state, are

24  not qualified productions.

25         (e)  "Qualified relocation project" means a

26  corporation, limited liability company, partnership, corporate

27  headquarters, or other private entity that is domiciled in

28  another state or country and relocates its operations to this

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

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

31  

                                  4

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






    Florida Senate - 2005                                  SB 1372
    37-833B-05




 1  digital-media-effects or motion picture and television

 2  production, or postproduction.

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

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

 5  filmed entertainment may submit an application to the Office

 6  of Film and Entertainment for the purpose of determining

 7  qualification for receipt of reimbursement provided in this

 8  section. The office must be provided information required to

 9  determine if the production is a qualified production and to

10  determine the qualified expenditures, production costs, and

11  other information necessary for the office to determine both

12  eligibility for and level of reimbursement.

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

14  furnishes digital material to a qualified production that is

15  certified by the Office of Film and Entertainment may submit

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

17  purpose of determining qualification for receipt of

18  reimbursement authorized by this section. The office must be

19  provided information required to determine if the company is

20  qualified and to determine the amount of reimbursement.

21         (c)  Any corporation, limited liability company,

22  partnership, corporate headquarters, or other private entity

23  domiciled in another state which includes as one of its

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

25  television production and which is considering relocation to

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

27  Entertainment for the purpose of determining qualification for

28  reimbursement under this section.

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

30  establish a process by which an application is accepted and

31  reviewed and reimbursement eligibility and reimbursement

                                  5

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






    Florida Senate - 2005                                  SB 1372
    37-833B-05




 1  amount are determined. The Office of Film and Entertainment

 2  may request assistance from a duly appointed local film

 3  commission in determining qualifications for reimbursement and

 4  compliance.

 5         2.  The Office of Film and Entertainment shall develop

 6  a standardized application form for use in approving a

 7  qualified production, a qualified relocation project, or a

 8  company qualifying under paragraph (a), paragraph (b), or

 9  paragraph (c). The application form must include, but need not

10  be limited to, production-related information on employment,

11  proposed total production budgets, planned expenditures in

12  this state which are intended for use exclusively as an

13  integral part of preproduction, production, or postproduction

14  activities engaged primarily in this state, and a signed

15  affirmation from the Office of Film and Entertainment that the

16  information on the application form has been verified and is

17  correct. The application form shall be distributed to

18  applicants by the Office of Film and Entertainment or local

19  film commissions.

20         3.  The Office of Film and Entertainment must complete

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

22  the completed application, including all required information,

23  and it must notify the applicant of its determination within

24  10 business days after receipt of the completed application

25  and required information.

26         4.2.  Upon determination that all criteria are met for

27  qualification for reimbursement, the office shall notify the

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

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

30  applicant approval and amount of reimbursement required. The

31  

                                  6

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






    Florida Senate - 2005                                  SB 1372
    37-833B-05




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

 2  final determination for actual reimbursement.

 3         5.3.  The Office of Film and Entertainment shall deny

 4  an application if it determines that:

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

 6  the requirements of this section; or

 7         b.  The reimbursement sought does not meet the

 8  requirements of this section for such reimbursement.

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

10  a standardized application form for use in approving a

11  qualified production, a qualified relocation project, or a

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

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

14  information on employment, proposed total production budgets,

15  planned expenditures in this state which are intended for use

16  exclusively as an integral part of preproduction, production,

17  or postproduction activities engaged in primarily in this

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

19  Entertainment that the information on the application form has

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

21  distributed to applicants by the Office of Film and

22  Entertainment or local film commissions.

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

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

25  the completed application, including all required information,

26  and it must notify the applicant of its determination within

27  10 business days after receipt of the completed application

28  and required information.

29         (4)  REIMBURSEMENT ELIGIBILITY; SUBMISSION OF REQUIRED

30  DOCUMENTATION; RECOMMENDATIONS FOR PAYMENT.--

31  

                                  7

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






    Florida Senate - 2005                                  SB 1372
    37-833B-05




 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 in this state on a filmed

 6  entertainment program that motion picture, made-for-television

 7  movie with a running time of 90 minutes or more, commercial,

 8  music video, industrial film, educational film, television

 9  series pilot, or television episode that demonstrates a

10  minimum of $850,000 in total qualified expenditures for the

11  entire run of the project, versus the budget on a single

12  episode, within the fiscal calendar year from July 1 to June

13  30. However, the maximum reimbursement that may be made with

14  respect to any filmed entertainment program a motion picture

15  is $2 million, the maximum reimbursement that may be made with

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

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

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

19  single television series pilot or television episode is

20  $150,000, the maximum reimbursement that may be made with

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

22  maximum reimbursement that may be made with respect to an

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

24  reimbursements under this section are subject to

25  appropriation. Payments under this section in a fiscal year

26  shall be made to approved projects according to a project's

27  principal photography start date, for those projects having

28  entered into the motion picture queue or the long-form

29  television queue within the first 2 weeks of the queue's

30  opening. All other projects entering into either queue after

31  the initial 2-week openings shall be on a first-come,

                                  8

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






    Florida Senate - 2005                                  SB 1372
    37-833B-05




 1  first-served basis until the appropriation for that fiscal

 2  year is exhausted, except that until February 1 of each year,

 3  the remaining funds within both queues shall be combined into

 4  a single queue and distributed based on a project's principal

 5  photography start date. Subject to subsequent appropriations,

 6  The eligibility of qualified productions may not shall carry

 7  over from year to year, but are eligible to reapply under the

 8  guidelines established for doing so. The Office of Film and

 9  Entertainment shall develop a procedure to ensure that

10  qualified productions continue on a reasonable schedule until

11  completion. If a qualified production is not continued

12  according to a reasonable schedule, the office shall withdraw

13  its eligibility and reallocate the funds to the next other

14  qualified productions already in the queue that have yet to

15  receive their full maximum or 15 percent financial

16  reimbursement, if they have not started principal photography

17  by the time the funds become available.

18         1.  Motion pictures, theatrical or direct-to-video,

19  made-for-television movies, commercials, music videos,

20  industrial and educational films, promotional videos or films,

21  documentary films, television specials, and

22  digital-media-effects productions by the entertainment

23  industry to be sold or displayed in an electronic medium shall

24  have their own separate queue established, and shall have

25  dedicated to it 60 percent of all of the state incentive

26  money.

27         2.  Long-form television programs or series, including,

28  but not limited to drama, reality, comedy, soap, telenovella,

29  game show, or miniseries productions by the entertainment

30  industry to be sold or displayed in an electronic medium shall

31  have their own separate queue established, and shall have

                                  9

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






    Florida Senate - 2005                                  SB 1372
    37-833B-05




 1  dedicated to it 40 percent of all of the state incentive

 2  money.

 3         2.  Qualified expenditures for which reimbursement

 4  shall be made include salaries and employment benefits paid

 5  for services rendered in this state; rents for real and

 6  personal property used in the production; payments for

 7  preproduction, production, postproduction, and

 8  digital-media-effects services rendered in this state; and

 9  cost of set construction. Reimbursement may not be authorized

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

11  actors are reimbursable.

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

13  furnishes digital material to a qualified production that is

14  certified by the Office of Film and Entertainment may be

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

16  its annual gross revenues on qualified expenditures listed in

17  paragraph (2)(c) subparagraph(a)2. before taxes or $100,000,

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

19  documentation annually as required by the Office of Film and

20  Entertainment for determination of eligibility of claimed

21  billing and determination of the amount of payment for which

22  the company is eligible.

23         (c)  A qualified relocation project that is certified

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

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

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

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

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

29  documentation as required by the Office of Film and

30  Entertainment for determination of eligibility of claimed

31  

                                  10

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






    Florida Senate - 2005                                  SB 1372
    37-833B-05




 1  billing and determination of the amount of payment for which

 2  the company is eligible.

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

 4  company, or a qualified relocation project applying for a

 5  payment under this section must submit documentation for

 6  claimed qualified expenditures to the Office of Film and

 7  Entertainment.

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

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

10  an applicant meets the criteria for reimbursement and shall

11  recommend the reimbursement amount. The Office of Tourism,

12  Trade, and Economic Development shall make the final

13  determination for actual reimbursement.

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

15  Entertainment shall provide an annual report for the previous

16  fiscal year, due October 1 January 1, to the Governor, the

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

18  Representatives outlining the return on investment to the

19  state on funds expended pursuant to this section.

20         Section 3.  This act shall take effect July 1, 2005.

21  

22            *****************************************

23                          SENATE SUMMARY

24    Revises a program under which certain persons producing,
      or providing services for the production of, filmed
25    entertainment are eligible for state financial incentives
      for activities in or relocated to this state. Deletes a
26    provision that requires a digital-media-effects company
      to be certified by the Office of Film and Entertainment
27    within the Office of Tourism, Trade, and Economic
      Development in order to submit an application for
28    qualification for receipt of reimbursement. Revises
      limits on reimbursement. Revises the due date for the
29    annual report to be submitted to the Governor and the
      Legislature. (See bill for details.)
30  

31  

                                  11

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