HB 1321

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 entertainment industry economic
7	development; amending s. 212.08, F.S.; authorizing the use
8	of certain entertainment industry tax credits as a refund
9	against sales and use tax liability under certain
10	circumstances; providing requirements, procedures, and
11	limitations; authorizing the Department of Revenue to
12	adopt rules; amending s. 220.02, F.S.; revising the order
13	of priority list of applicable credits against certain
14	taxes; transferring, renumbering, and amending s.
15	288.1254, F.S.; revising the entertainment industry
16	financial incentive program to provide corporate income
17	tax credits to qualified entertainment entities rather
18	than reimbursements from appropriations; revising
19	provisions relating to definitions, creation and scope,
20	application procedures, approval process, eligibility,
21	required documents, qualified productions, and annual
22	reports; providing criteria and limitations for awards of
23	tax credits; providing marketing requirements; requiring
24	the Office of Tourism, Trade, and Economic Development and
25	Department of Revenue to adopt rules; providing liability
26	for reimbursement of certain costs and fees associated
27	with fraudulent applications; providing for future repeal;
28	amending s. 477.0135, F.S.; correcting a cross-reference;
29	providing an effective date.
30
31	Be It Enacted by the Legislature of the State of Florida:
32
33	Section 1.  Paragraph (r) is added to subsection (5) of
34	section 212.08, Florida Statutes, to read:
35	212.08  Sales, rental, use, consumption, distribution, and
36	storage tax; specified exemptions.--The sale at retail, the
37	rental, the use, the consumption, the distribution, and the
38	storage to be used or consumed in this state of the following
39	are hereby specifically exempt from the tax imposed by this
40	chapter.
41	(5)  EXEMPTIONS; ACCOUNT OF USE.--
42	(r)  Entertainment industry tax credits; authorization;
43	eligibility for credits.--Beginning July 1, 2006, any company
44	engaged in producing filmed entertainment in this state that has
45	registered with the department under this chapter to collect or
46	remit sales or use tax and has satisfied the requirements
47	enumerated in and has received credits under s. 220.192 may use
48	the award of credits against the tax imposed by this chapter as
49	provided by this section.
50	1.  The credit shall be granted as a refund against state
51	sales and use taxes reported on returns and remitted in the 12
52	months preceding the date of application to the department for
53	the credit.
54	2.  A company may not be awarded more than $2 million in
55	tax credits under this paragraph and s. 220.192, unless the
56	production is a high-impact television series as defined in s.
57	220.192(2)(b), in which case the production shall be eligible
58	for a maximum tax credit award of $3 million.
59	3.  The total amount of tax credits which may be granted
60	for all programs approved under this paragraph and s. 220.192 is
61	$25 million in any state fiscal year.
62	4.  A company may use the tax credit against the tax
63	liability imposed under this chapter, in whole or in part, and
64	against the liability imposed under chapter 220, so long as the
65	credit is actually applied only once.
66	5.  The department may adopt rules pursuant to ss.
67	120.536(1) and 120.54 to administer this paragraph, as provided
68	by s. 220.192(6)(b).
69	Section 2.  Subsection (8) of section 220.02, Florida
70	Statutes, is amended to read:
71	220.02  Legislative intent.--
72	(8)  It is the intent of the Legislature that credits
73	against either the corporate income tax or the franchise tax be
74	applied in the following order: those enumerated in s. 631.828,
75	those enumerated in s. 220.191, those enumerated in s. 220.181,
76	those enumerated in s. 220.183, those enumerated in s. 220.182,
77	those enumerated in s. 220.1895, those enumerated in s. 221.02,
78	those enumerated in s. 220.184, those enumerated in s. 220.186,
79	those enumerated in s. 220.1845, those enumerated in s. 220.19,
80	those enumerated in s. 220.185, and those enumerated in s.
81	220.187, and those enumerated in s. 220.192.
82	Section 3.  Section 288.1254, Florida Statutes, is
83	transferred and renumbered as section 220.192, Florida Statutes,
84	and amended to read:
85	220.192 288.1254  Entertainment industry financial
86	incentive program; creation; purpose; definitions; application
87	procedure; approval process; reimbursement eligibility;
88	submission of required documentation; recommendations for credit
89	award payment; policies and procedures; fraudulent claims.--
90	(1)  CREATION AND PURPOSE OF PROGRAM.--Subject to specific
91	appropriation, There is created within the Office of Film and
92	Entertainment an entertainment industry financial incentive
93	program. The purpose of this program is to encourage the use of
94	this state as a site for filming and developing and sustaining
95	the workforce and infrastructure providing production services
96	for filmed entertainment.
97	(2)  DEFINITIONS.--As used in this section, the term:
98	(a)  "Filmed entertainment" means a theatrical or
99	direct-to-video motion picture, a made-for-television motion
100	picture teleproduction, a commercial, a music video, an
101	industrial or educational film, a promotional video or film, a
102	documentary film, a television pilot, a presentation for a
103	television pilot, a television special, a television series,
104	including, but not limited to, a drama, a reality, a comedy, a
105	soap opera, a telenovela, a game show, and a miniseries
106	production, or a digital-media-effects production by the
107	entertainment industry to be sold or displayed in an electronic
108	medium, excluding news shows and sporting events. As used in
109	this paragraph, the term "motion picture" means a motion picture
110	made on or by film, tape, or otherwise and produced by means of
111	a motion picture camera, electronic camera or device, tape
112	device, any combination of the foregoing, or any other means,
113	method, or device now used or which may hereafter be adopted. As
114	used in this paragraph, the term "digital-media-effects" means
115	visual elements created through the modification of already
116	existing or newly created visual elements for film, video, or
117	animated media through the use of digital 2D/3D animation or
118	painting, motion capture, or compositing technologies. For
119	purposes of this section, the term "filmed entertainment" does
120	not include the electronic gaming industry or sporting events.
121	(b)  "High-impact television series" means a production
122	created to run multiple production seasons with an estimated
123	order of at least seven episodes per season and qualified
124	expenditures of at least $625,000 per episode.
125	(c)(b)  "Production costs" means the costs of real,
126	tangible, and intangible property used and services performed
127	primarily or customarily in the production, including
128	preproduction and postproduction, of qualified filmed
129	entertainment. Production costs generally include, but are not
130	limited to:
131	1.  Wages, salaries, or other compensation, including
132	amounts paid through payroll service companies, for technical
133	and production crews, directors, producers, and performers who
134	are residents of this state.
135	2.  Expenditures for sound stages, backlots, production
136	editing, digital effects, sound recordings, sets, and set
137	construction.
138	3.  Expenditures for rental equipment, including, but not
139	limited to, cameras and grip or electrical equipment.
140	4.  Expenditures for meals, travel, and accommodations, and
141	goods used in producing filmed entertainment that is located and
142	doing business in this state.
143	5.  Expenditures for goods and services used in producing
144	filmed entertainment.
145	(d)(c)  "Qualified expenditures" means production costs
146	incurred in this state within the current state fiscal year for
147	goods purchased or leased from or services provided by
148	purchased, leased, or employed from a resident of this state or
149	a vendor or supplier who is located and doing business in this
150	state, or payments to residents of this state in the form of
151	salary, wages, or other compensation but excluding wages,
152	salaries, and or other compensation paid to the two highest-paid
153	residents of this state employees.
154	(e)(d)  "Qualified production" means filmed entertainment
155	that meets or exceeds minimum qualified makes expenditures
156	required in this state for the total or partial production of
157	filmed entertainment. Productions that are deemed by the Office
158	of Film and Entertainment to contain obscene content, as defined
159	by the United States Supreme Court, are not qualified
160	productions. Also, a production is not a qualified production if
161	it is determined that the first day of principal photography in
162	this state occurred on or before the date of submitting its
163	application to the Office of Film and Entertainment or prior to
164	certification by the Office of Tourism, Trade, and Economic
165	Development.
166	(f)(e)  "Qualified production company relocation project"
167	means a corporation, limited liability company, partnership,
168	corporate headquarters, or other legal private entity engaged in
169	the production of filmed entertainment that is domiciled in
170	another state or country and relocates its operations to this
171	state, is organized under the laws of this or any other state or
172	country, and includes as one of its primary purposes digital-
173	media-effects or motion picture and television production, or
174	postproduction.
175	(3)  APPLICATION PROCEDURE; APPROVAL PROCESS.--
176	(a)  Any company engaged in this state in producing filmed
177	entertainment may submit an application to the Office of Film
178	and Entertainment for the purpose of determining qualification
179	for an award of credits against the tax imposed by this chapter
180	as receipt of reimbursement provided in this section. The office
181	must be provided information required to determine if the
182	production is a qualified production and to determine the
183	qualified expenditures, production costs, and other information
184	necessary for the office to determine both eligibility for the
185	tax credit and level of reimbursement.
186	(b)  A digital-media-effects company in the state which
187	furnishes digital material to filmed entertainment may submit an
188	application to the Office of Film and Entertainment for the
189	purpose of determining qualification for receipt of
190	reimbursement authorized by this section. The office must be
191	provided information required to determine if the company is
192	qualified and to determine the amount of reimbursement.
193	(c)  Any corporation, limited liability company,
194	partnership, corporate headquarters, or other private entity
195	domiciled in another state which includes as one of its primary
196	purposes digital-media-effects or motion picture and television
197	production and which is considering relocation to this state may
198	submit an application to the Office of Film and Entertainment
199	for the purpose of determining qualification for reimbursement
200	under this section.
201	(d)1.  The Office of Film and Entertainment shall establish
202	a process by which an application is accepted and reviewed and
203	reimbursement eligibility and reimbursement amount are
204	determined. The Office of Film and Entertainment may request
205	assistance from a duly appointed local film commission in
206	determining qualifications for reimbursement and compliance.
207	1.2.  The Office of Film and Entertainment shall develop a
208	standardized application form for use in qualifying an applicant
209	as approving a qualified production, a qualified relocation
210	project, or a company qualifying under paragraph (a), paragraph
211	(b), or paragraph (c). The application form for qualifying an
212	applicant as a qualified production must include, but need not
213	be limited to, production-related information on employment,
214	proposed total production budgets, planned expenditures in this
215	state which are intended for use exclusively as an integral part
216	of preproduction, production, or postproduction activities
217	engaged primarily in this state, and a signed affirmation from
218	the applicant Office of Film and Entertainment that the
219	information on the application form has been verified and is
220	correct. The application form shall be distributed to applicants
221	by the Office of Film and Entertainment or local film
222	commissions.
223	2.3.  Within 10 business days after receipt of an
224	application, the Office of Film and Entertainment shall review
225	the application to determine if the application contains all the
226	information required by this subsection and meets the criteria
227	set out in this section. The office shall qualify all
228	applications that contain the information and meet the criteria
229	set out in this section as eligible to receive a tax credit or
230	shall notify the applicant that the requirements for
231	qualification have not been met. If the application is
232	qualified, the office shall recommend to the Office of Tourism,
233	Trade, and Economic Development approval of the maximum amount
234	of the tax credit to be awarded. The Office of Film and
235	Entertainment must complete its review of each application
236	within 5 days after receipt of the completed application,
237	including all required information, and it must notify the
238	applicant of its determination within 10 business days after
239	receipt of the completed application and required information.
240	3.4.  Within 10 business days after receiving notice from
241	the Office of Film and Entertainment of qualification of an
242	applicant as a qualified production and a recommended approval
243	of the maximum amount of tax credit to be awarded, the Office of
244	Tourism, Trade, and Economic Development shall certify the
245	maximum tax credit award, if any. The certification shall be
246	transmitted to the applicant and to the executive director of
247	the Department of Revenue. The applicant shall be responsible
248	for forwarding a certified application to the Department of
249	Revenue. Upon determination that all criteria are met for
250	qualification for reimbursement, The Office of Film and
251	Entertainment shall notify the applicant of such approval. the
252	office shall also notify the Office of Tourism, Trade, and
253	Economic Development of the applicant approval and amount of
254	reimbursement required. The Office of Tourism, Trade, and
255	Economic Development shall make final determination for actual
256	reimbursement.
257	4.5.  The Office of Film and Entertainment shall deny an
258	application if it determines that:
259	a.  The application is not complete or does not meet the
260	requirements of this section; or
261	b.  The tax credit amount reimbursement sought does not
262	meet the requirements of this section for such reimbursement.
263	(4)  CREDIT REIMBURSEMENT ELIGIBILITY; SUBMISSION OF
264	REQUIRED DOCUMENTATION; APPLICATION RECOMMENDATIONS FOR TRANSFER
265	PAYMENT.--
266	(a)  Tax credit award.--A production of filmed
267	entertainment that is qualified by the Office of Film and
268	Entertainment and is certified by the Office of Tourism, Trade,
269	and Economic Development is eligible for a tax credit for
270	reimbursement of up to 15 percent of its qualified qualifying
271	expenditures in this state on a filmed entertainment program
272	that demonstrates a minimum of $850,000 in total qualified
273	expenditures for the entire run of the project, versus the
274	budget on a single episode, within the fiscal year from July 1
275	to June 30. However, the maximum reimbursement that may be made
276	with respect to any filmed entertainment program is $2 million.
277	All reimbursements under this section are subject to
278	appropriation.
279	(b)  Production spanning 2 state fiscal years.--A qualified
280	production that starts in one state fiscal year and finishes in
281	the next state fiscal year shall have all qualified expenditures
282	from both state fiscal years certified for the latter state
283	fiscal year. This requirement does not apply to the commercials
284	and music video queue described in subparagraph (d)3.
285	(c)  Aggregate tax credit available.--The aggregate amount
286	of tax credits allowed under this section in any state fiscal
287	year is $25 million. If the total amount of allocated tax
288	credits applied for in any state fiscal year exceeds the
289	aggregate amount of tax credits authorized annually under this
290	section, such excess shall be treated as having been applied for
291	on the first day of the next state fiscal year in which tax
292	credits remain available for allocation. However, no more than
293	an aggregate amount of $100 million in tax credits shall be
294	allocated in state fiscal year 2006-2007, aggregate allocations
295	in state fiscal year 2007-2008 shall not exceed $133 million,
296	aggregate allocations in state fiscal year 2008-2009 shall not
297	exceed $166 million, and aggregate allocations in state fiscal
298	years 2009-2010 and thereafter shall not exceed $200 million. At
299	such time as $200 million of tax credits have been allocated, no
300	additional tax credits shall be allocated.
301	(d)  Filmed entertainment queues.--Tax credits awarded
302	Payments under this section in a state fiscal year shall be made
303	to qualified productions according to a production's principal
304	photography start date, for those qualified productions having
305	entered into the first queue as cited in subparagraph 1. or the
306	second queue cited in subparagraph 2. within the first 2 weeks
307	after the queue's opening. All other qualified productions
308	entering into either queue after the initial 2-week openings
309	shall be on a first-come, first-served basis until the
310	appropriation for that fiscal year is exhausted. On February 1
311	of each year, the remaining funds within both queues shall be
312	combined into a single queue and distributed based on a
313	project's principal photography start date. The eligibility of
314	qualified productions may not carry over from year to year, but
315	such productions may reapply for eligibility under the
316	guidelines established for doing so. The Office of Film and
317	Entertainment shall develop a procedure to ensure that qualified
318	productions continue on a reasonable schedule until completion.
319	If a qualified production is not continued according to a
320	reasonable schedule, the office shall withdraw its eligibility
321	and reallocate the funds to the next qualified productions
322	already in the queue that have yet to receive their full maximum
323	or 15-percent financial reimbursement, if they have not started
324	principal photography by the time the funds become available.
325	1.  Film, television, and episodic queue.--Theatrical or
326	direct-to-video motion pictures, made-for-television movies,
327	commercials, music videos, industrial and educational films,
328	promotional videos or films, documentary films, television
329	specials, television series, including, but not limited to,
330	miniseries and telenovelas, and digital-media-effects
331	productions by the entertainment industry to be sold or
332	displayed in an electronic medium that demonstrate a minimum of
333	$625,000 in total qualified expenditures for the entire run of
334	the project, which, for a television series, means a season even
335	if the season is not completed in the same state fiscal year in
336	which principal photography began, shall have their own separate
337	queue established, and such queue shall have dedicated to it 60
338	percent of all available tax credits in any state fiscal year
339	for which this section applies of the state incentive money. The
340	maximum tax credit award that may be made from this queue for
341	any single production is $2 million, unless the production is a
342	high-impact television series, in which case the production
343	shall be eligible for a maximum tax credit award of $3 million,
344	provided such production meets the other criteria of this
345	section. On March 1 of each year, the remaining tax credits
346	within this queue shall be merged into a general queue and may
347	be used for other purposes of this section as determined by the
348	Office of Film and Entertainment. A television series,
349	including, but not limited to, a qualified high-impact
350	television series, is not eligible for a tax credit award under
351	this section after its fifth production season. A qualified
352	high-impact television series shall be allowed first position in
353	this queue for its first five production seasons in this state
354	if the application is received by the Office of Film and
355	Entertainment within the first 2 weeks after the queue's
356	opening. A qualified high-impact television series must file an
357	application for each state fiscal year in which it is eligible
358	to receive the credit, unless otherwise provided in this
359	section.
360	2.  Television pilot queue.--Television pilots and,
361	presentations for television pilots for television series
362	intended to be shot in this state and, or television series,
363	including, but not limited to, drama, reality, comedy, soap
364	opera, telenovela, game show, or miniseries productions, by the
365	entertainment industry to be sold or displayed in an electronic
366	medium that demonstrate a minimum of $625,000 in total qualified
367	expenditures for the pilot episode or presentation shall have
368	their own separate queue established, and such queue shall have
369	dedicated to it 20 40 percent of all available tax credits in
370	any given state fiscal year for which this section applies of
371	the state incentive money. The maximum tax credit award that may
372	be made from this queue for any single project is $2 million. On
373	March 1 of each year, the remaining tax credits within this
374	queue shall be merged into a general queue and may be used for
375	other purposes of this section as determined by the Office of
376	Film and Entertainment.
377	3.  Commercials and music video queue.--Commercials and
378	music videos by the entertainment industry to be sold or
379	displayed in an electronic medium that demonstrate a minimum of
380	$500,000 in combined total qualified expenditures from a
381	production company during the state fiscal year with a minimum
382	of $75,000 in qualified expenditures for each production shall
383	have their own separate queue established. Such queue shall have
384	dedicated to it 20 percent of available tax credits in any given
385	state fiscal year for which this section applies. The maximum
386	tax credit award that may be made from this queue for any single
387	production company is $500,000 for a state fiscal year. On April
388	1 of each year, the remaining tax credits within this queue
389	shall be merged into a general queue and may be used for other
390	purposes of this section as determined by the Office of Film and
391	Entertainment.
392	(e)  Loss of eligibility; reallocation of tax credits.--If
393	a qualified production is not continued according to a
394	reasonable schedule or the Office of Film and Entertainment is
395	notified that a qualified production will no longer be produced,
396	the office shall withdraw the production's eligibility for tax
397	credits and reallocate the tax credits to the next qualified
398	productions already in the queue that have yet to receive a full
399	tax credit if such next qualified productions have not started
400	principal photography by the time the tax credits become
401	available.
402	(f)  Verification of tax credit award.--The Office of Film
403	and Entertainment shall develop a process by which a qualified
404	production that has been certified by the Office of Tourism,
405	Trade, and Economic Development shall submit to the Office of
406	Film and Entertainment, in a timely manner after production ends
407	and after making all of its qualified expenditures, verifying
408	data to substantiate each qualified expenditure. The Office of
409	Film and Entertainment shall report to the Office of Tourism,
410	Trade, and Economic Development the final verified amount of
411	actual qualified expenditures made by the qualified production.
412	The Office of Tourism, Trade, and Economic Development shall
413	then notify the executive director of the Department of Revenue
414	that the qualified production has met all requirements of the
415	incentive program and shall recommend the final amount of the
416	tax credit.
417	(g)(b)  Use of tax credit; carry forward.--The tax credit
418	available under this section shall only be surrendered in
419	satisfaction of the tax owed by a qualified production company
420	under this chapter and only up to the face amount of the credit.
421	If the qualified production company cannot use the entire tax
422	credit in the state fiscal year in which the credit is approved,
423	any excess may be carried over to a succeeding state fiscal
424	year. A tax credit granted under this section and applied
425	against taxes imposed under this chapter may be carried forward
426	only for a maximum of 5 state fiscal years following the state
427	fiscal year in which the credit was approved. A digital-media-
428	effects company in the state which furnishes digital material to
429	filmed entertainment may be eligible for a payment in an amount
430	not to exceed 5 percent of its annual gross revenues on
431	qualified expenditures as defined in paragraph (2)(c) before
432	taxes or $100,000, whichever is less. A company applying for
433	payment must submit documentation annually as required by the
434	Office of Film and Entertainment for determination of
435	eligibility of claimed billing and determination of the amount
436	of payment for which the company is eligible.
437	(h)(c)  Transfer of tax credits.--Upon application and
438	approval by the Department of Revenue, a taxpayer may sell or
439	assign, in whole or in part, a tax credit granted under this
440	section. The sale or assignment of any amount of the tax credit
441	shall not be exchanged for consideration received by the
442	taxpayer of less than 85 percent of the transferred amount of
443	tax credit. The purchaser or assignee shall surrender the tax
444	credit in the state fiscal year acquired from the qualified
445	production company and otherwise may carry the tax credit over
446	subject to the same limitations on tax credit usage as the
447	qualified production company awarded the tax credit. The
448	purchaser may not sell, assign, or otherwise transfer the tax
449	credit. Tax credits granted by this section may not be sold or
450	assigned, in whole or in part, until all credits the taxpayer is
451	eligible to use under this chapter and chapter 212 are
452	exhausted. The Department of Revenue may adopt rules pursuant to
453	ss. 120.536(1) and 120.54 to administer this paragraph, as
454	provided in paragraph (6)(b). A qualified relocation project
455	that is certified by the Office of Film and Entertainment is
456	eligible for a one-time incentive payment in an amount equal to
457	5 percent of its annual gross revenues before taxes for the
458	first 12 months of conducting business in its Florida domicile
459	or $200,000, whichever is less. A company applying for payment
460	must submit documentation as required by the Office of Film and
461	Entertainment for determination of eligibility of claimed
462	billing and determination of the amount of payment for which the
463	company is eligible.
464	(i)(d)  Noncorporate distributions of tax credits.--A
465	qualified production company that is not a corporation, as
466	defined in s. 220.03(1)(e), shall elect to make an application,
467	a digital-media-effects company, or a qualified relocation
468	project applying for a payment under this section must submit
469	documentation for claimed qualified expenditures to the
470	Department of Revenue as provided in paragraph (h) or distribute
471	tax credits awarded under this section to its partners or
472	members in proportion to the respective distributive share of
473	such partners' or members' income or loss in the state fiscal
474	year in which such tax credits were approved. A tax credit
475	granted under this section and applied against taxes imposed
476	under this chapter shall be carried forward only for a maximum
477	of 5 state fiscal years following the state fiscal year in which
478	the credit was approved Office of Film and Entertainment. The
479	Department of Revenue may adopt rules pursuant to ss. 120.536(1)
480	and 120.54 to administer this paragraph, as provided in
481	paragraph (6)(b).
482	(j)(e)  Use of tax credits.--A company may use the tax
483	credit against the tax liability imposed under this chapter, in
484	whole or in part, and against the tax liability imposed under
485	chapter 212. The Office of Film and Entertainment shall notify
486	the Office of Tourism, Trade, and Economic Development whether
487	an applicant meets the criteria for reimbursement and shall
488	recommend the reimbursement amount. The Office of Tourism,
489	Trade, and Economic Development shall make the final
490	determination for actual reimbursement.
491	(5)  MARKETING REQUIREMENTS.--The Office of Film and
492	Entertainment shall ensure appropriate marketing materials,
493	including promotions of this state as a tourist or filming
494	destination, are required when appropriate to be included on
495	any filmed entertainment as a condition of receiving a tax
496	credit under this section. The Office of Film and
497	Entertainment shall consult with appropriate entities for the
498	development and implementation of marketing materials.
499	(6)(5)  RULES POLICIES AND PROCEDURES.--
500	(a)  The Office of Tourism, Trade, and Economic Development
501	shall adopt rules pursuant to ss. 120.536(1) and 120.54 policies
502	and procedures to implement this section, including, but not
503	limited to, rules specifying requirements for the application
504	and approval process, records required for submission for
505	substantiation of credit awards for reimbursement, and
506	determination of and qualification for credit awards, and
507	marketing requirements for credit recipients reimbursement.
508	(b)  The Department of Revenue may adopt rules pursuant to
509	ss. 120.536(1) and 120.54 to administer the provisions of this
510	section, including rules governing the manner and form of
511	documentation required to claim tax credits granted or
512	transferred under this section, and may establish guidelines as
513	to the requisites for an affirmative showing of qualification
514	for tax credits granted or transferred under this section.
515	(7)(6)  FRAUDULENT CLAIMS.--
516	(a)  Any applicant who submits an application under this
517	section that includes fraudulent information shall be liable for
518	reimbursement of the reasonable costs and fees associated with
519	the review, processing, investigation, and prosecution of the
520	application.
521	(b)  An eligible entity or company that obtains a credit
522	payment under this section through a claim that it knows is
523	fraudulent is liable for reimbursement of the credit amount paid
524	plus a penalty in an amount double the credit payment and
525	reimbursement of reasonable costs, which penalty is in addition
526	to any criminal penalty to which the entity or company is liable
527	for the same acts, plus interest. The entity or company is also
528	liable for costs and fees incurred by the state in investigating
529	and prosecuting the fraudulent claim.
530	(8)(7)  ANNUAL REPORT.--The Office of Film and
531	Entertainment shall provide an annual report for the previous
532	state fiscal year, due October 1, to the Governor, the President
533	of the Senate, and the Speaker of the House of Representatives
534	outlining the return on investment to the state on tax credits
535	awarded funds expended pursuant to this section.
536	(9)  REPEAL.--This section is repealed July 1, 2014.
537	Section 4.  Subsection (5) of section 477.0135, Florida
538	Statutes, is amended to read:
539	477.0135  Exemptions.--
540	(5)  A license is not required of any individual providing
541	makeup, special effects, or cosmetology services to an actor,
542	stunt person, musician, extra, or other talent during a
543	production recognized by the Office of Film and Entertainment as
544	a qualified production as defined in s. 220.192 288.1254(2).
545	Such services are not required to be performed in a licensed
546	salon. Individuals exempt under this subsection may not provide
547	such services to the general public.
548	Section 5.  This act shall take effect July 1, 2006.

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