CS/CS/HB 1325

A bill to be entitled
2An act relating to the entertainment industry; amending s.
3288.1254, F.S.; revising the entertainment industry
4financial incentive program; providing purpose of the
5program; providing for submittal and approval of an
6application under the program; providing for review by the
7Office of Film and Entertainment and the Office of
8Tourism, Trade, and Economic Development; providing
9standards for review; providing for verification of which
10expenditures concerning an entertainment production
11qualify for incentive funding under the program; requiring
12inclusion of marketing materials promoting this state as a
13condition of receiving incentive funding; establishing
14queues; specifying requirements concerning each queue;
15authorizing the Office of Tourism, Trade, and Economic
16Development to adopt rules, policies, and procedures;
17requiring an annual report to the Governor and the
18Legislature; creating a penalty for fraudulent
19applications and claims; providing an appropriation;
20repealing s. 288.1255, F.S., relating to obsolete
21provisions for an annual appropriation; providing for
22severability; providing an effective date.
24Be It Enacted by the Legislature of the State of Florida:
26     Section 1.  This act may be cited as the "Don Davis
27Entertainment Industry Economic Development Act."
28     Section 2.  Section 288.1254, Florida Statutes, is amended
29to read:
30     (Substantial rewording of section. See
31     s. 288.1254, F.S., for present text.)
32     288.1254  Entertainment industry financial incentive
34     (1)  DEFINITIONS.--As used in this section, the term:
35     (a)  "Certified production" means a qualified production
36that has incentive funds allocated to it by the Office of
37Tourism, Trade, and Economic Development based on its estimated
38qualified expenditures. The term excludes a production if its
39first day of principal photography in this state occurred before
40the production is certified by the Office of Tourism, Trade, and
41Economic Development, unless the production spans more than 1
42fiscal year, was a certified production on the first day of such
43photography, and is required to submit an application for
44continuing the same production in the subsequent year.
45     (b)  "Digital media project" means a production of
46interactive entertainment which is produced for distribution in
47commercial or educational markets, including a video game,
48simulation, or animation, or a production intended for Internet
49or wireless distribution. The term excludes a production deemed
50by the Office of Film and Entertainment to contain obscene
51content as defined in s. 847.001(10).
52     (c)  "High-impact television series" means a production
53created to run multiple production seasons having an estimated
54order of at least seven episodes per season and qualified
55expenditures of at least $625,000 per episode.
56     (d)  "Off-season certified production" means a production,
57other than a digital media project or an animated production,
58which films 75 percent or more of its principal photography days
59from June 1 through November 30.
60     (e)  "Production" means a theatrical or direct-to-video
61motion picture, a made-for-television motion picture, a
62commercial, a music video, an industrial or educational film, an
63infomercial, a documentary film, a television pilot program, a
64presentation for a television pilot program, a television
65series, including, but not limited to, a drama, a reality show,
66a comedy, a soap opera, a telenovela, a game show, a miniseries
67production, or a digital media project by the entertainment
68industry. One season of a television series is considered one
69production. The term excludes a weather or market program, a
70sporting event, a sports show, a gala, a production that
71solicits funds, a home shopping program, a political program, a
72political documentary, political advertising, a gambling-related
73project or production, a concert production, a pornographic
74production, or a local, regional, or Internet-distributed-only
75news show, current-events show, a pornographic production, or a
76current-affairs show. A production may be produced on or by
77film, tape, or otherwise by means of a motion picture camera,
78electronic camera or device, tape device, computer, any
79combination of the foregoing, or any other means, method, or
80device now used or later adopted.
81     (f)  "Production expenditures" means the costs of tangible
82and intangible property used and services performed primarily
83and customarily in the production, including preproduction and
84postproduction, excluding costs for development, marketing, and
85distribution. Production expenditures include, but are not
86limited to:
87     1.  Wages, salaries, or other compensation, including
88amounts paid through payroll service companies, for technical
89and production crews, directors, producers, and performers.
90     2.  Expenditures for sound stages, backlots, production
91editing, digital effects, sound recordings, sets, and set
93     3.  Expenditures for rental equipment, including, but not
94limited to, cameras and grip or electrical equipment.
95     4.  Expenditures for meals, travel, and accommodations.
96     (g)  "Qualified expenditures" means production expenditures
97incurred in this state by a qualified production for:
98     1.  Goods purchased or leased from, or services provided
99by, a vendor or supplier in this state which is registered with
100the Department of State or the Department of Revenue and doing
101business in this state.
102     2.  Payments to residents of this state in the form of
103salary, wages, or other compensation up to a maximum of $400,000
104per resident for the general production queue and the
105independent Florida filmmaker queue and up to a maximum of
106$200,000 for the digital media queue.
108For a qualified production involving an event, such as an awards
109show, the term excludes expenditures solely associated with the
110event itself and not directly required by the production. The
111term excludes expenditures prior to certification, with the
112exception of those incurred for a commercial, a music video, or
113the pickup of additional episodes of a television series within
114a single season.
115     (h)  "Qualified production" means a production in this
116state meeting the requirements of this section and the minimum
117qualified expenditures and requirements of its appropriate
118queue. The term excludes a production:
119     1.  In which less than 50 percent of the positions that
120make up its production cast and below-the-line production crew
121are filled by residents of this state, whose residency is
122demonstrated by a valid Florida driver's license or other state-
123issued identification confirming residency, or students enrolled
124full-time in a film-and-entertainment-related course of study at
125an institution of higher education in this state; or
126     2.  That is deemed by the Office of Film and Entertainment
127to contain obscene content as defined in s. 847.001(10).
128     (i)  "Qualified production company" means a corporation,
129limited liability company, partnership, or other legal entity
130engaged in producing a qualified production.
131     (2)  CREATION AND PURPOSE OF PROGRAM.--The entertainment
132industry financial incentive program is created within the
133Office of Film and Entertainment. The purpose of this program is
134to encourage the use of this state as a site for filming and to
135develop and sustain the workforce and infrastructure for film
136and entertainment production.
138     (a)  A qualified production company in this state producing
139a qualified production may submit a program application to the
140Office of Film and Entertainment for the purpose of determining
141certification. The applicant shall provide the office with
142information required to determine whether the production is a
143qualified production and to determine the qualified expenditures
144and other information necessary for the office to determine
146     (b)  The Office of Film and Entertainment shall develop an
147application form for use in qualifying an applicant as a
148qualified production. The form must include, but need not be
149limited to, production-related information concerning employment
150of residents in this state, a detailed budget of planned
151qualified expenditures, and the applicant's signed affirmation
152that the information on the form has been verified and is
153correct. The Office of Film and Entertainment and local film
154commissions shall distribute the form.
155     (c)  The Office of Film and Entertainment shall establish a
156process by which an application is accepted and reviewed for
157certification. The office may request assistance from a duly
158appointed local film commission in determining compliance with
159this section.
160     (d)  The Office of Film and Entertainment shall review the
161application within 10 business days after receipt. Upon its
162determination that the application contains all the information
163required by this subsection and meets the criteria set out in
164this section, the office shall qualify the applicant and
165recommend to the Office of Tourism, Trade, and Economic
166Development that the applicant be certified for a maximum amount
167of available funds. Within 5 business days after receipt of the
168recommendation, the Office of Tourism, Trade, and Economic
169Development shall reject the recommendation or certify the
171     (e)  The Office of Film and Entertainment shall deny an
172application if it determines that the application is not
173complete or the production does not meet the requirements of
174this section.
175     (f)  The Office of Film and Entertainment shall develop a
176process to verify the actual qualified expenditures of a
177certified production. The process must require:
178     1.  A certified production to submit, in a timely manner
179after production ends and after making all of its qualified
180expenditures, data substantiating each qualified expenditure to
181an independent certified public accountant licensed in this
183     2.  Such accountant to conduct an audit, at the certified
184production's expense, to substantiate each qualified expenditure
185and submit the results as a report, along with all
186substantiating data, to the Office of Film and Entertainment;
188     3.  The Office of Film and Entertainment to review the
189accountant's submittal and report to the Office of Tourism,
190Trade, and Economic Development the final verified amount of
191actual qualified expenditures made by the certified production.
192     4.  The Office of Tourism, Trade, and Economic Development
193shall determine and approve the incentive amount to each
194certified applicant.
195     (g)  The Office of Film and Entertainment shall ensure
196that, as a condition of receiving incentive funding under this
197section, marketing materials promoting this state as a tourist
198destination or film and entertainment production destination are
199included, when appropriate, at no cost to the state, which must,
200at a minimum, include placement in the end credits of a "Filmed
201in Florida" logo with size and placement commensurate to other
202logos included in the end credits or, if no logos are used, the
203statement "Filmed in Florida using Florida's Entertainment
204Industry Financial Incentive," or a similar statement approved
205by the Office of Film and Entertainment before such placement.
206The Office of Film and Entertainment shall develop a "Filmed in
207Florida" logo and supply it for the purposes specified in this
211     (a)  The priority of a qualified production for incentive
212funding must be determined on a first-come, first-served basis
213within its appropriate queue. Each qualified production must be
214placed into the appropriate queue and is subject to the
215requirements of that queue.
216     (b)  GENERAL PRODUCTION QUEUE.-Eighty-five percent of
217incentive funding appropriated in any state fiscal year must be
218dedicated to the general production queue. A production
219certified under this queue is eligible for a reimbursement equal
220to 15 percent of its actual qualified expenditures. Within this
222     1.  A qualified production, excluding commercials, music
223videos, and digital media projects, which demonstrates a minimum
224of $625,000 in qualified expenditures is eligible for up to a
225maximum of $8 million in incentive funding. A qualified
226production spanning multiple state fiscal years may combine
227qualified expenditures from such fiscal years to satisfy the
229     2.  A qualified production company that produces national,
230international, or regional commercials, or music videos may be
231eligible for a maximum of $500,000 in incentive funding if it
232demonstrates a minimum of $100,000 in qualified expenditures per
233national, international, or regional commercial or music video
234and exceeds a combined threshold of $500,000 after combining
235actual qualified expenditures from qualified commercials and
236music videos during a single state fiscal year. After a
237qualified production company that produces commercials, music
238videos, or both reaches the threshold of $500,000, it is
239eligible to apply for certification for incentive funding.
240     3.  An off-season certified production is eligible for an
241additional 5-percent incentive funding on actual qualified
242expenditures. An off-season certified production that does not
243complete 75 percent of principal photography due to disruption
244caused by a hurricane or tropical storm may not be disqualified
245from eligibility for the additional 5-percent incentive as a
246result of the disruption.
247     4.  Each qualified production shall make a good faith
248effort to use existing providers of infrastructure or equipment
249in this state, including providers of camera gear, grip and
250lighting equipment, vehicle providers, and postproduction
251services when available in-state.
252     5.  A qualified high-impact television series shall be
253allowed first position in this queue for incentive funding not
254yet certified.
255     (c)  INDEPENDENT FLORIDA FILMMAKER QUEUE.--Five percent of
256incentive funding appropriated in any state fiscal year must be
257dedicated to the independent Florida filmmaker queue. A
258production certified under this queue is eligible for a
259reimbursement equal to 15 percent of its actual qualified
260expenditures. An independent Florida film that meets the
261criteria of this queue and demonstrates a minimum of $100,000,
262but not more than $625,000, in total qualified expenditures is
263eligible for incentive funding. To qualify for this queue, a
264qualified production must:
265     1.  Be planned as a feature film or documentary of no less
266than 70 minutes in length.
267     2.  Provide evidence of 50 percent of the financing for its
268total budget in an escrow account or other form dedicated to the
270     3.  Do all major postproduction in this state.
271     4.  Employ Florida workers in at least six of the following
272key positions: writer, director, producer, director of
273photography, star or one of the lead actors, unit production
274manager, editor, or production designer. As used in this
275subparagraph, the term "Florida worker" means a person who has
276been a resident of this state for at least 1 year before  a
277production's application under subsection (3) was submitted or a
278person who graduated from a film school, college, university, or
279community college in this state no more than 5 years before such
280submittal or who is enrolled full-time in such a school,
281college, or university.
282     (d)  DIGITAL MEDIA PRODUCTS QUEUE.--Ten percent of
283incentive funding appropriated in any state fiscal year shall be
284dedicated to the digital media projects queue. A production
285certified under this queue is eligible for a reimbursement equal
286to 10 percent if its actual qualified expenditures. A qualified
287production that is a digital media project that demonstrates a
288minimum of $300,000 in total qualified expenditures is eligible
289for a maximum of $1 million in incentive funding. As used in
290this paragraph, the term "qualified expenditures" means the
291wages or salaries paid to a resident of this state for working
292on a single qualified digital media project, up to a maximum of
293$200,000 in wages or salaries paid per resident. A qualified
294production company producing digital media projects may not
295qualify for more than three projects in any 1 fiscal year.
296Projects that extend beyond a fiscal year must reapply each
297fiscal year in order to be eligible for incentive funding for
298that year.
299     (e)  Each qualified production or certified production
300shall continue on a reasonable schedule, which means beginning
301principal photography in this state no more than 45 calendar
302days before or after the date provided in the program's
303application under subsection (3). The Office of Tourism, Trade,
304and Economic Development shall withdraw the eligibility of a
305qualified production or a certified production for incentive
306funding if any such production does not continue on a reasonable
308     (f)  A certified production determined by the Commissioner
309of Film and Entertainment, with the advice of the Florida Film
310and Entertainment Advisory Council, to be family friendly based
311on the review of the script and an interview with the director
312is eligible for an additional reimbursement equal to 2 percent
313of its actual qualified expenditures. Family friendly
314productions are those that have cross-generational appeal; would
315be considered suitable for viewing by children age 5 and older;
316are appropriate in theme, content, and language for a broad
317family audience; embody a responsible resolution of issues; and
318do not exhibit any act of smoking, sex, nudity, or vulgar or
319profane language.
320     (5)  RULES, POLICIES, AND PROCEDURES.--The Office of
321Tourism, Trade, and Economic Development may adopt rules under
322ss. 120.536(1) and 120.54 and develop policies and procedures to
323administer this section, including, but not limited to, rules
324specifying requirements for the application and approval
326     (6)  ANNUAL REPORT.--Each October 1, the Office of Film and
327Entertainment shall provide an annual report for the previous
328fiscal year to the Governor, the President of the Senate, and
329the Speaker of the House of Representatives which outlines the
330return on investment and economic benefits to the state.
331     (7)  FRAUD.--Any applicant that submits information under
332this section that includes fraudulent information is liable for
333reimbursement of the reasonable costs and fees associated with
334the review, processing, investigation, and prosecution of the
335fraudulent claim. An applicant that obtains an incentive payment
336under this section through a claim that is fraudulent is liable
337for reimbursement of the incentive payment plus a penalty in an
338amount double the incentive payment. The penalty is in addition
339to any criminal penalty to which the applicant is liable for the
340same acts. The applicant is also liable for costs and fees
341incurred by the state in investigating and prosecuting the
342fraudulent claim.
343     Section 3.  For the 2007-2008 fiscal year, the sum of $25
344million is appropriated from the General Revenue Fund on a
345nonrecurring basis to the Office of Tourism, Trade, and Economic
346Development for the Office of Film and Entertainment for
347purposes of implementing s. 288.1254, Florida Statutes.
348Notwithstanding s. 216.301, Florida Statutes, to the contrary,
349the unexpended balance of this appropriation shall not revert
350until June 30, 2009.
351     Section 4.  Section 288.1255, Florida Statutes, is
353     Section 5.  If any provision of this act or the application
354thereof to any person or circumstance is held invalid, the
355invalidity shall not affect other provisions or applications of
356the act which can be given effect without the invalid provision
357or application, and to this end the provisions of this act are
358declared severable.
359     Section 6.  This act shall take effect July 1, 2007.

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