Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 96
Barcode 654282
CHAMBER ACTION
Senate House
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11 The Committee on Finance and Tax (Haridopolos) recommended the
12 following amendment:
13
14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
16
17 and insert:
18 Section 1. Section 288.1254, Florida Statutes, is
19 amended to read:
20 (Substantial rewording of section. See
21 s. 288.1254, F.S., for present text.)
22 288.1254 Entertainment industry financial incentive
23 program.--
24 (1) DEFINITIONS.--As used in this section, the term:
25 (a) "Certified production" means a qualified
26 production as determined by the Office of Tourism, Trade, and
27 Economic Development. The term excludes a production if its
28 first day of principal photography in this state occurred
29 before the production is certified by the Office of Tourism,
30 Trade, and Economic Development, unless the production spans
31 more than 1 fiscal year, was a certified production on the
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 96
Barcode 654282
1 first day of such photography, and is required to submit an
2 application for continuing the same production in the
3 subsequent year.
4 (b) "Digital media project" means a production of
5 interactive entertainment which is produced for distribution
6 in commercial or educational markets, including a video game,
7 simulation, or animation, or a production intended for
8 Internet or wireless distribution. The term excludes a
9 production deemed by the Office of Film and Entertainment to
10 contain obscene content as defined in s. 847.001(10).
11 (c) "High-impact television series" means a production
12 created to run multiple production seasons having an estimated
13 order of at least seven episodes per season and qualified
14 expenditures of at least $625,000 per episode.
15 (d) "Off-season certified production" means a
16 production, other than a digital media project or an animated
17 production, which films 75 percent or more of its principal
18 photography days from June 1 through November 30.
19 (e) "Production" means a theatrical or direct-to-video
20 motion picture, a made-for-television motion picture, a
21 commercial, a music video, an industrial or educational film,
22 an infomercial, a documentary film, a television pilot
23 program, a presentation for a television pilot program, a
24 television series, including, but not limited to, a drama, a
25 reality show, a comedy, a soap opera, a telenovela, a game
26 show, a miniseries production, or a digital media project by
27 the entertainment industry. One season of a television series
28 is considered one production. The term excludes a weather or
29 market program, a sporting event, a sports show, a gala, a
30 production that solicits funds, a home shopping program, a
31 political program, a political documentary, political
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 96
Barcode 654282
1 advertising, a gambling-related project or production, a
2 concert production, a news show, a current-events show, or a
3 current-affairs show that is local, regional, or distributed
4 only on the Internet. A production may be produced on or by
5 film, tape, or otherwise by means of a motion picture camera,
6 electronic camera or device, tape device, computer, any
7 combination of the foregoing, or any other means, method, or
8 device now used or later adopted.
9 (f) "Production expenditures" means the costs of
10 tangible and intangible property used and services performed
11 primarily and customarily in the production, including
12 preproduction and postproduction, excluding costs for
13 development, marketing, and distribution. Production
14 expenditures include, but are not limited to:
15 1. Wages, salaries, or other compensation, including
16 amounts paid through payroll service companies, for technical
17 and production crews, directors, producers, and performers.
18 2. Expenditures for sound stages, backlots, production
19 editing, digital effects, sound recordings, sets, and set
20 construction.
21 3. Expenditures for rental equipment, including, but
22 not limited to, cameras and grip or electrical equipment.
23 4. Expenditures for meals, travel, and accommodations.
24 (g) "Qualified expenditures" means production
25 expenditures incurred in this state by a qualified production
26 for:
27 1. Goods purchased or leased from, or services
28 provided by, a vendor or supplier in this state which is
29 registered with the Department of State or the Department of
30 Revenue and doing business in this state.
31 2. Payments to residents of this state in the form of
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 96
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1 salary, wages, or other compensation up to a maximum of
2 $400,000 per resident for the general production queue and the
3 independent Florida filmmaker queue and up to a maximum of
4 $200,000 for the digital media queue.
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6 For a qualified production involving an event, such as an
7 awards show, the term excludes expenditures solely associated
8 with the event itself and not directly required by the
9 production. The term excludes expenditures prior to
10 certification, with the exception of those incurred for a
11 commercial, a music video, or the pickup of additional
12 episodes of a television series within a single season.
13 (h) "Qualified production" means a production in this
14 state meeting the requirements of this section and the minimum
15 qualified expenditures and requirements of its appropriate
16 queue. The term excludes a production:
17 1. In which less than 50 percent of the positions that
18 make up its production cast and below-the-line production crew
19 are filled by residents of this state, whose residency is
20 demonstrated by a valid Florida driver's license or other
21 state-issued identification confirming residency, or students
22 enrolled full-time in a film-and-entertainment-related course
23 of study at an institution of higher education in this state;
24 or
25 2. That is deemed by the Office of Film and
26 Entertainment to contain obscene content as defined in s.
27 847.001(10).
28 (i) "Qualified production company" means a
29 corporation, limited liability company, partnership, or other
30 legal entity engaged in producing a qualified production.
31 (2) CREATION AND PURPOSE OF PROGRAM.--The
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 96
Barcode 654282
1 entertainment industry financial incentive program is created
2 within the Office of Film and Entertainment. The purpose of
3 this program is to encourage the use of this state as a site
4 for filming and to develop and sustain the workforce and
5 infrastructure for film and entertainment production.
6 (3) APPLICATION PROCEDURE; APPROVAL PROCESS.--
7 (a) A qualified production company in this state
8 producing a qualified production may submit a program
9 application to the Office of Film and Entertainment for the
10 purpose of determining certification. The application must be
11 submitted no earlier than 1 year before the date the
12 production is anticipated to start. The applicant shall
13 provide the office with information required to determine
14 whether the production is a qualified production and to
15 determine the qualified expenditures and other information
16 necessary for the office to determine certification.
17 (b) The Office of Film and Entertainment shall develop
18 a application form for use in qualifying an applicant as a
19 qualified production. The form must include, but need not be
20 limited to, production-related information concerning
21 employment of residents in this state, a detailed budget of
22 planned qualified expenditures, and the applicant's signed
23 affirmation that the information on the form has been verified
24 and is correct. The Office of Film and Entertainment and local
25 film commissions shall distribute the form.
26 (c) The Office of Film and Entertainment shall
27 establish a process by which an application is accepted and
28 reviewed for certification. The office may request assistance
29 from a duly appointed local film commission in determining
30 compliance with this section.
31 (d) The Office of Film and Entertainment shall review
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 96
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1 the application within 10 business days after receipt. Upon
2 its determination that the application contains all the
3 information required by this subsection and meets the criteria
4 set out in this section, the office shall qualify the
5 applicant and recommend to the Office of Tourism, Trade, and
6 Economic Development that the applicant be certified. Within 5
7 business days after receipt of the recommendation, the Office
8 of Tourism, Trade, and Economic Development shall reject the
9 recommendation or certify the applicant.
10 (e) The Office of Film and Entertainment shall deny an
11 application if it determines that the application is not
12 complete or the production does not meet the requirements of
13 this section.
14 (f) The Office of Film and Entertainment shall develop
15 a process to verify the actual qualified expenditures of a
16 certified production. The process must require:
17 1. A certified production to submit, in a timely
18 manner after production ends and after making all of its
19 qualified expenditures, data substantiating each qualified
20 expenditure to an independent certified public accountant
21 licensed in this state;
22 2. Such accountant to conduct an audit, at the
23 certified production's expense, to substantiate each qualified
24 expenditure and submit the results as a report, along with all
25 substantiating data, to the Office of Film and Entertainment;
26 and
27 3. The Office of Film and Entertainment to review the
28 accountant's submittal and report to the Office of Tourism,
29 Trade, and Economic Development the final verified amount of
30 actual qualified expenditures made by the certified
31 production.
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 96
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1 (g) The Office of Film and Entertainment shall ensure
2 that, as a condition of receiving incentive funding under this
3 section, marketing materials promoting this state as a tourist
4 destination or film and entertainment production destination
5 are included, when appropriate, at no cost to the state, which
6 must, at a minimum, include placement in the end credits of a
7 "Filmed in Florida" logo with size and placement commensurate
8 to other logos included in the end credits or, if no logos are
9 used, the statement "Filmed in Florida using Florida's
10 Entertainment Industry Financial Incentive," or a similar
11 statement approved by the Office of Film and Entertainment
12 before such placement. The Office of Film and Entertainment
13 shall develop a "Filmed in Florida" logo and supply it for the
14 purposes specified in this paragraph.
15 (4) PRIORITY FOR INCENTIVE FUNDING; WITHDRAWAL OF
16 ELIGIBILITY; QUEUES.--
17 (a) The priority of a qualified production for
18 incentive funding must be determined on a first-come,
19 first-served basis within its appropriate queue. Each
20 qualified production must be placed into the appropriate queue
21 and is subject to the requirements of that queue.
22 (b) Each qualified production or certified production
23 shall continue on a reasonable schedule, which means beginning
24 principal photography in this state no more than 45 calendar
25 days before or after the date for such commencement which was
26 provided in the program's application under subsection (3).
27 The Office of Tourism, Trade, and Economic Development shall
28 withdraw the eligibility of a qualified production or a
29 certified production for incentive funding if any such
30 production does not continue on a reasonable schedule.
31 (c) At least 85 percent of incentive funding available
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 96
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1 under this section in any state fiscal year must be dedicated
2 to the general production queue. Within this queue:
3 1. A qualified production, excluding commercials,
4 music videos, and digital media projects, which demonstrates a
5 minimum of $625,000 in qualified expenditures is eligible for
6 incentive funding. A qualified production spanning multiple
7 state fiscal years may combine qualified expenditures from
8 such fiscal years to satisfy the threshold.
9 2. A qualified production company that produces
10 national, international, or regional commercials, or music
11 videos may be eligible for incentive funding if it
12 demonstrates a minimum of $100,000 in qualified expenditures
13 per national, international, or regional commercial or music
14 video and exceeds a combined threshold of $500,000 after
15 combining actual qualified expenditures from qualified
16 commercials and music videos during a single state fiscal
17 year. After a qualified production company that produces
18 commercials, music videos, or both reaches the threshold of
19 $500,000, it is eligible to apply for certification for
20 incentive funding.
21 3. An off-season certified production is eligible for
22 an additional 5-percent incentive funding on actual qualified
23 expenditures. An off-season certified production that does not
24 complete 75 percent of principal photography due to disruption
25 caused by a hurricane or tropical storm may not be
26 disqualified from eligibility for the additional 5-percent
27 incentive as a result of the disruption.
28 4. Each qualified production shall make a good faith
29 effort to the existing providers of infrastructure or
30 equipment in this state, including providers of camera gear,
31 grip and lighting equipment, vehicle providers, and
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1 postproduction services when available in-state.
2 (d) Five percent of incentive funding available in any
3 state fiscal year must be dedicated to the independent Florida
4 filmmaker queue. An independent Florida film that meets the
5 criteria of this queue and demonstrates a minimum of $100,000,
6 but not more than $625,000, in total qualified expenditures is
7 eligible for incentive funding. To qualify for this queue, a
8 qualified production must:
9 1. Be planned as a feature film or documentary of no
10 less than 70 minutes in length.
11 2. Provide evidence of 50 percent of the financing for
12 its total budget in an escrow account or other form dedicated
13 to the production.
14 3. Do all major postproduction in this state.
15 4. Employ Florida workers in at least six of the
16 following key positions: writer, director, producer, director
17 of photography, star or one of the lead actors, unit
18 production manager, editor, or production designer. As used in
19 this subparagraph, the term "Florida worker" means a person
20 who has been a resident of this state for at least 1 year
21 before a production's application under subsection (3) was
22 submitted or a person who graduated from a film school,
23 college, university, or community college in this state no
24 more than 5 years before such submittal or who is enrolled
25 full-time in such a school, college, or university.
26 (e) Ten percent of incentive funding available under
27 this section in any state fiscal year shall be dedicated to
28 the digital media projects queue. A qualified production that
29 is a digital media project that demonstrates a minimum of
30 $300,000 in total qualified expenditures is eligible for
31 incentive funding. As used in this paragraph, the term
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 96
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1 "qualified expenditures" means the wages or salaries paid to a
2 resident of this state for working on a single qualified
3 digital media project, up to a maximum of $200,000 in wages or
4 salaries paid per resident. A qualified production company
5 producing digital media projects may not qualify for more than
6 three projects in any 1 fiscal year. Projects that extend
7 beyond a fiscal year must reapply each fiscal year in order to
8 be eligible for incentive funding for that year.
9 (5) RULES, POLICIES, AND PROCEDURES.--The Office of
10 Tourism, Trade, and Economic Development may adopt rules under
11 ss. 120.536(1) and 120.54 and develop policies and procedures
12 to administer this section, including, but not limited to,
13 rules specifying requirements for the application and approval
14 process.
15 (6) ANNUAL REPORT.--Each October 1, the Office of Film
16 and Entertainment shall provide an annual report for the
17 previous fiscal year to the Governor, the President of the
18 Senate, and the Speaker of the House of Representatives which
19 outlines the return on investment to the state on funds
20 appropriated by this act.
21 (7) REPEAL.--This section is repealed July 1, 2010.
22 Section 2. For the 2007-2008 fiscal year, the sum of
23 $10 million is appropriated from the General Revenue Fund on a
24 nonrecurring basis to the Office of Tourism, Trade, and
25 Economic Development for the Office of Film and Entertainment
26 for purposes of implementing s. 288.1254, Florida Statutes.
27 Notwithstanding s. 216.301, Florida Statutes, to the contrary,
28 the unexpended balance of this appropriation shall not revert
29 until June 30, 2009.
30 Section 3. This act shall take effect July 1, 2007.
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 96
Barcode 654282
1 ================ T I T L E A M E N D M E N T ===============
2 And the title is amended as follows:
3 Delete everything before the enacting clause
4
5 and insert:
6 A bill to be entitled
7 An act relating to the entertainment industry;
8 amending s. 288.1254, F.S.; revising the
9 entertainment industry financial incentive
10 program; providing purpose of the program;
11 providing for submittal and approval of an
12 application under the program; providing for
13 review by the Office of Film and Entertainment
14 and the Office of Tourism, Trade, and Economic
15 Development; providing standards for review;
16 providing for verification of which
17 expenditures concerning an entertainment
18 production qualify for incentive funding under
19 the program; requiring inclusion of marketing
20 materials promoting this state as a condition
21 of receiving incentive funding; establishing
22 queues; specifying requirements concerning each
23 queue; authorizing the Office of Tourism,
24 Trade, and Economic Development to adopt rules,
25 policies, and procedures; requiring an annual
26 report to the Governor and the Legislature;
27 providing for future repeal; providing an
28 appropriation; providing an effective date.
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