Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. CS for SB 2110
Barcode 763876
CHAMBER ACTION
Senate House
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04/25/2006 10:13 AM .
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11 The Committee on Government Efficiency Appropriations (Posey)
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 288.1254, Florida Statutes, is
19 amended to read:
20 288.1254 Entertainment industry financial incentive
21 program; creation; purpose; definitions; application
22 procedure; approval process; reimbursement eligibility;
23 submission of required documentation; recommendations for
24 payment; policies and procedures; fraudulent claims.--
25 (1) CREATION AND PURPOSE OF PROGRAM.--Subject to
26 specific appropriation, there is created within the Office of
27 Film and Entertainment an entertainment industry financial
28 incentive program. The purpose of this program is to encourage
29 the use of this state as a site for filming and developing and
30 sustaining the workforce and infrastructure providing
31 production services for filmed entertainment.
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. CS for SB 2110
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1 (2) DEFINITIONS.--As used in this section, the term:
2 (a) "Filmed entertainment" means a theatrical or
3 direct-to-video motion picture, a made-for-television motion
4 picture teleproduction, a commercial, a music video, an
5 industrial or educational film, a promotional video or film, a
6 documentary film, a television pilot, a television special, a
7 presentation for a television pilot, a television series,
8 including, but not limited to, a drama, a reality, a comedy, a
9 soap opera, a telenovela, a game show, and a miniseries
10 production, or a digital-media-effects production by the
11 entertainment industry to be sold or displayed in an
12 electronic medium, excluding news shows and sporting events.
13 As used in this paragraph, the term "motion picture" means a
14 motion picture made on or by film, tape, or otherwise and
15 produced by means of a motion picture camera, electronic
16 camera or device, tape device, any combination of the
17 foregoing, or any other means, method, or device now used or
18 which may hereafter be adopted. As used in this paragraph, the
19 term "digital-media-effects" means visual elements created
20 through the modification of already existing or newly created
21 visual elements for film, video, or animated media through the
22 use of digital 2D/3D animation or painting, motion capture, or
23 compositing technologies. For purposes of this section, the
24 term "filmed entertainment" does not include the electronic
25 gaming industry or sporting events.
26 (b) "High-impact television series" means a production
27 created to run multiple production seasons with an estimated
28 order of at least seven episodes per season and qualified
29 expenditures of at least $625,000 per episode.
30 (c)(b) "Production costs" means the costs of real,
31 tangible, and intangible property used and services performed
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. CS for SB 2110
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1 primarily or customarily in the production, including
2 preproduction and postproduction, of qualified filmed
3 entertainment. Production costs generally include, but are not
4 limited to:
5 1. Wages, salaries, or other compensation, including
6 amounts paid through payroll service companies, for technical
7 and production crews, directors, producers, and performers who
8 are residents of this state.
9 2. Expenditures for sound stages, backlots, production
10 editing, digital effects, sound recordings, sets, and set
11 construction.
12 3. Expenditures for rental equipment, including, but
13 not limited to, cameras and grip or electrical equipment.
14 4. Expenditures for meals, travel, and accommodations,
15 and goods used in producing filmed entertainment that is
16 located and doing business in this state.
17 5. Expenditures for goods and services used in
18 producing filmed entertainment.
19 (d)(c) "Qualified expenditures" means production costs
20 incurred in this state within the current state fiscal year
21 for goods purchased or leased from or services provided by
22 purchased, leased, or employed from a resident of this state
23 or a vendor or supplier who is located and doing business in
24 this state or payments to residents of this state in the form
25 of salary, wages, or other compensation, but excluding wages,
26 salaries, or other compensation paid to the two highest-paid
27 residents of this state participating in the qualified
28 production employees.
29 (e)(d) "Qualified production" means filmed
30 entertainment that meets or exceeds minimum qualified makes
31 expenditures required in this state for the total or partial
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. CS for SB 2110
Barcode 763876
1 production of filmed entertainment. Productions that are
2 deemed by the Office of Film and Entertainment to contain
3 obscene content, as defined by the United States Supreme
4 Court, are not qualified productions. Also, a production is
5 not a qualified production if it is determined that the first
6 day of principal photography in this state occurred on or
7 before the date of submitting its application to the Office of
8 Film and Entertainment or prior to certification by the Office
9 of Tourism, Trade, and Economic Development.
10 (f)(e) "Qualified production company relocation
11 project" means a corporation, limited liability company,
12 partnership, corporate headquarters, or other legal private
13 entity engaged in the production of filmed entertainment that
14 is domiciled in another state or country and relocates its
15 operations to this state, is organized under the laws of this
16 or any other state or country, and includes as one of its
17 primary purposes digital-media-effects or motion picture and
18 television production, or postproduction.
19 (3) APPLICATION PROCEDURE; APPROVAL PROCESS.--
20 (a) Any company engaged in this state in producing
21 filmed entertainment may submit an application to the Office
22 of Film and Entertainment for the purpose of determining
23 qualification for receipt of reimbursement provided in this
24 section. The office must be provided information required to
25 determine if the production is a qualified production and to
26 determine the qualified expenditures, production costs, and
27 other information necessary for the office to determine both
28 eligibility for and level of reimbursement.
29 (b) A digital-media-effects company in the state which
30 furnishes digital material to filmed entertainment may submit
31 an application to the Office of Film and Entertainment for the
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Florida Senate - 2006 COMMITTEE AMENDMENT
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1 purpose of determining qualification for receipt of
2 reimbursement authorized by this section. The office must be
3 provided information required to determine if the company is
4 qualified and to determine the amount of reimbursement.
5 (c) Any corporation, limited liability company,
6 partnership, corporate headquarters, or other private entity
7 domiciled in another state which includes as one of its
8 primary purposes digital-media-effects or motion picture and
9 television production and which is considering relocation to
10 this state may submit an application to the Office of Film and
11 Entertainment for the purpose of determining qualification for
12 reimbursement under this section.
13 (d)1. The Office of Film and Entertainment shall
14 establish a process by which an application is accepted and
15 reviewed and reimbursement eligibility and reimbursement
16 amount are determined. The Office of Film and Entertainment
17 may request assistance from a duly appointed local film
18 commission in determining qualifications for reimbursement and
19 compliance.
20 2. The Office of Film and Entertainment shall develop
21 a standardized application form for use in qualifying an
22 applicant as approving a qualified production, a qualified
23 relocation project, or a company qualifying under paragraph
24 (a), paragraph (b), or paragraph (c). The application form for
25 qualifying an applicant as a qualified production must
26 include, but need not be limited to, production-related
27 information on employment, proposed total production budgets,
28 planned expenditures in this state which are intended for use
29 exclusively as an integral part of preproduction, production,
30 or postproduction activities engaged primarily in this state,
31 and a signed affirmation from the applicant Office of Film and
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1 Entertainment that the information on the application form has
2 been verified and is correct. The application form shall be
3 distributed to applicants by the Office of Film and
4 Entertainment or local film commissions.
5 3. Within 10 business days after receipt of an
6 application, the Office of Film and Entertainment shall review
7 the application to determine if the application contains all
8 the information required by this subsection and meets the
9 criteria set out in this section. The office shall qualify all
10 applications that contain the information and meet the
11 criteria set out in this section as eligible to receive a
12 reimbursement or shall notify the applicant that the
13 requirements for qualification have not been met. If the
14 application is qualified, the office shall recommend to the
15 Office of Tourism, Trade, and Economic Development approval of
16 the maximum amount of reimbursement required. The Office of
17 Film and Entertainment must complete its review of each
18 application within 5 days after receipt of the completed
19 application, including all required information, and it must
20 notify the applicant of its determination within 10 business
21 days after receipt of the completed application and required
22 information.
23 4. Upon determination that all criteria are met for
24 qualification for reimbursement, the Office of Film and
25 Entertainment shall notify the applicant of such approval. The
26 office shall also notify the Office of Tourism, Trade, and
27 Economic Development of the applicant approval and amount of
28 reimbursement required. The Office of Tourism, Trade, and
29 Economic Development shall make final determination for actual
30 reimbursement.
31 5. The Office of Film and Entertainment shall deny an
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. CS for SB 2110
Barcode 763876
1 application if the office it determines that:
2 a. The application is not complete or does not meet
3 the requirements of this section; or
4 b. The reimbursement sought does not meet the
5 requirements of this section for such reimbursement.
6 (4) REIMBURSEMENT ELIGIBILITY; SUBMISSION OF REQUIRED
7 DOCUMENTATION; RECOMMENDATIONS FOR PAYMENT.--
8 (a) A production of filmed entertainment that is
9 qualified by the Office of Film and Entertainment and is
10 certified by the Office of Tourism, Trade, and Economic
11 Development is eligible for a reimbursement of up to 15
12 percent of its qualified qualifying expenditures in this state
13 on a filmed entertainment program that demonstrates a minimum
14 of $850,000 in total qualified expenditures for the entire run
15 of the project, versus the budget on a single episode, within
16 the fiscal year from July 1 to June 30. However, the maximum
17 reimbursement that may be made with respect to any filmed
18 entertainment program in the first queue as cited in
19 subparagraph 1. and in the second queue as cited in
20 subparagraph 2. is $2 million unless the production is a
21 high-impact television series, in which case the production is
22 eligible for a maximum reimbursement of $3 million. The
23 maximum reimbursement that may be made with respect to any
24 filmed entertainment program in the third queue as cited in
25 subparagraph 3. for any single production company is $500,000
26 per state fiscal year. All reimbursements under this section
27 are subject to appropriation.
28 (b) Payments under this section in a state fiscal year
29 shall be made to qualified productions according to a
30 production's principal photography start date, for those
31 qualified productions having entered into the first queue as
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Florida Senate - 2006 COMMITTEE AMENDMENT
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1 cited in subparagraph 1., or the second queue cited in
2 subparagraph 2., or the third queue cited in subparagraph 3.
3 within the first 2 weeks after the queue's opening. All other
4 qualified productions entering into any either queue after the
5 initial 2-week openings shall be on a first-come, first-served
6 basis until the appropriation for that fiscal year is
7 exhausted. On March February 1 of each year, the remaining
8 funds within the first queue as cited in subparagraph 1. or
9 the second queue as cited in subparagraph 2. both queues shall
10 be combined into a single queue and distributed based on a
11 project's principal photography start date. On April 1 of each
12 year, the remaining funds within the third queue as cited in
13 subparagraph 3. shall be merged into a general queue and may
14 be used for other purposes of this section, as determined by
15 the Office of Film and Entertainment. The eligibility of
16 qualified productions may not carry over from year to year,
17 but such productions may reapply for eligibility under the
18 guidelines established for doing so. The Office of Film and
19 Entertainment shall develop a procedure to ensure that
20 qualified productions continue on a reasonable schedule until
21 completion. If a qualified production is not continued
22 according to a reasonable schedule, the office shall withdraw
23 its eligibility and reallocate the funds to the next qualified
24 productions already in the queue that have yet to receive
25 their full maximum or 15-percent financial reimbursement, if
26 they have not started principal photography by the time the
27 funds become available.
28 1. Film, television, and episodic queue.--Theatrical
29 or direct-to-video motion pictures, made-for-television
30 movies, commercials, music videos, industrial and educational
31 films, promotional videos or films, documentary films,
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. CS for SB 2110
Barcode 763876
1 television specials, television series, including, but not
2 limited to, miniseries and telenovelas, and
3 digital-media-effects productions by the entertainment
4 industry to be sold or displayed in an electronic medium which
5 demonstrate a minimum of $625,000 in total qualified
6 expenditures for the entire run of the project, which, for a
7 television series, means a season even if the season is not
8 completed in the same state fiscal year in which principal
9 photography began, shall have their own separate queue
10 established, and such queue shall have dedicated to it 60
11 percent of all of the state incentive money. A television
12 series, including, but not limited to, a qualified high-impact
13 television series, is not eligible for a reimbursement under
14 this section after its fifth production season in this state.
15 A qualified high-impact television series shall be allowed
16 first position in this queue for its first five production
17 seasons in this state if the application is received by the
18 Office of Film and Entertainment within the first 2 weeks
19 after the queue's opening. A qualified high-impact television
20 series must file an application for each state fiscal year in
21 which it is eligible to receive the credit, unless otherwise
22 provided in this section.
23 2. Television pilot queue.--Television pilots and,
24 presentations for television pilots for television series
25 intended to be shot in this state and, or television series,
26 including, but not limited to, drama, reality, comedy, soap
27 opera, telenovela, game show, or miniseries productions, by
28 the entertainment industry to be sold or displayed in an
29 electronic medium which demonstrate a minimum of $625,000 in
30 total qualified expenditures for the pilot episode or
31 presentation shall have their own separate queue established,
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Florida Senate - 2006 COMMITTEE AMENDMENT
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1 and such queue shall have dedicated to it 20 40 percent of all
2 of the state incentive money.
3 3. Commercial and music video queue.--Commercials and
4 music videos by the entertainment industry to be sold or
5 displayed in an electronic medium which demonstrate a minimum
6 of $500,000 in combined total qualified expenditures from a
7 production company during the state fiscal year with a minimum
8 of $75,000 in qualified expenditures for each production shall
9 have their own separate queue established. Such queue shall
10 have dedicated to it 20 percent of all of the state incentive
11 money.
12 (b) A digital-media-effects company in the state which
13 furnishes digital material to filmed entertainment may be
14 eligible for a payment in an amount not to exceed 5 percent of
15 its annual gross revenues on qualified expenditures as defined
16 in paragraph (2)(c) before taxes or $100,000, whichever is
17 less. A company applying for payment must submit documentation
18 annually as required by the Office of Film and Entertainment
19 for determination of eligibility of claimed billing and
20 determination of the amount of payment for which the company
21 is eligible.
22 (c) A qualified relocation project that is certified
23 by the Office of Film and Entertainment is eligible for a
24 one-time incentive payment in an amount equal to 5 percent of
25 its annual gross revenues before taxes for the first 12 months
26 of conducting business in its Florida domicile or $200,000,
27 whichever is less. A company applying for payment must submit
28 documentation as required by the Office of Film and
29 Entertainment for determination of eligibility of claimed
30 billing and determination of the amount of payment for which
31 the company is eligible.
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Florida Senate - 2006 COMMITTEE AMENDMENT
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1 (c)(d) A qualified production, a digital-media-effects
2 company, or a qualified relocation project applying for a
3 payment under this section must submit documentation for
4 claimed qualified expenditures to the Office of Film and
5 Entertainment.
6 (d)(e) The Office of Film and Entertainment shall
7 notify the Office of Tourism, Trade, and Economic Development
8 whether an applicant meets the criteria for reimbursement and
9 shall recommend the reimbursement amount. The Office of
10 Tourism, Trade, and Economic Development shall make the final
11 determination for actual reimbursement.
12 (5) MARKETING REQUIREMENTS.--The Office of Film and
13 Entertainment shall ensure marketing materials, including
14 promotions of this state as a tourist or filming destination,
15 are required when appropriate to be included on any filmed
16 entertainment as a condition of receiving reimbursement under
17 this section. The Office of Film and Entertainment shall
18 consult with appropriate entities for the development and
19 implementation of marketing materials.
20 (6)(5) RULES POLICIES AND PROCEDURES.--The Office of
21 Tourism, Trade, and Economic Development shall adopt rules
22 pursuant to ss. 120.536(1) and 120.54 policies and procedures
23 to implement this section, including, but not limited to,
24 rules specifying requirements for the application and approval
25 process, records required for submission for substantiation
26 for reimbursement, and determination of and qualification for
27 reimbursement, and marketing requirements for reimbursement
28 recipients.
29 (7)(6) FRAUDULENT CLAIMS.--
30 (a) Any applicant who submits an application under
31 this section which includes fraudulent information is liable
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1 for reimbursement of the reasonable costs and fees associated
2 with the review, processing, investigation, and prosecution.
3 (b) An eligible entity or company that obtains a
4 payment under this section through a claim that it knows is
5 fraudulent is liable for reimbursement of the amount paid plus
6 a penalty in an amount double the payment and reimbursement of
7 reasonable costs, which penalty is in addition to any criminal
8 penalty to which the entity or company is liable for the same
9 acts, plus interest. The entity or company is also liable for
10 costs and fees incurred by the state in investigating and
11 prosecuting the fraudulent claim.
12 (8)(7) ANNUAL REPORT.--The Office of Film and
13 Entertainment shall provide an annual report for the previous
14 state fiscal year, due October 1, to the Governor, the
15 President of the Senate, and the Speaker of the House of
16 Representatives outlining the return on investment to the
17 state on funds expended pursuant to this section.
18 Section 2. This act shall take effect July 1, 2006.
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21 ================ T I T L E A M E N D M E N T ===============
22 And the title is amended as follows:
23 Delete everything before the enacting clause
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25 and insert:
26 A bill to be entitled
27 An act relating to entertainment industry
28 economic development; amending s. 288.1254,
29 F.S.; revising the entertainment industry
30 financial incentive program; revising
31 provisions relating to definitions,
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Florida Senate - 2006 COMMITTEE AMENDMENT
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1 eligibility, and qualified productions;
2 providing marketing requirements; requiring the
3 Office of Tourism, Trade, and Economic
4 Development to adopt rules; providing liability
5 for reimbursement of certain costs and fees
6 associated with fraudulent applications;
7 providing an effective date.
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