Florida Senate - 2017                                    SB 1576
       
       
        
       By Senator Gibson
       
       
       
       
       
       6-01080B-17                                           20171576__
    1                        A bill to be entitled                      
    2         An act relating to the Florida Film Investment
    3         Corporation; creating s. 288.1259, F.S.; defining
    4         terms; creating the Florida Film Investment
    5         Corporation and stating its purpose; authorizing the
    6         corporation to make investments in scripted
    7         productions in the state subject to certain
    8         conditions; requiring the board of directors to
    9         establish criteria, bylaws, rules, and policies for
   10         making investments; requiring the board to adopt
   11         criteria that give preference to certain productions;
   12         authorizing the corporation to charge fees subject to
   13         certain limits; providing membership requirements for
   14         the board; specifying term requirements; providing
   15         that board members are subject to the code of ethics
   16         for public officers and employees; providing voting
   17         and compliance requirements; providing applicability;
   18         prohibiting board members from commenting on or
   19         discussing certain applications for a specified
   20         timeframe; providing that the board serves without
   21         compensation; authorizing the board to be reimbursed
   22         for specified expenses; requiring the board to adopt
   23         rules and hold meetings; requiring the board to create
   24         the Florida Film Investment Account for specified
   25         purposes; requiring funds appropriated to the
   26         corporation to be deposited in the account;
   27         authorizing the board to deposit a portion of funds
   28         into a bank and invest the remaining portion in
   29         specified securities; requiring dividends to be
   30         deposited in the account; providing for the board’s
   31         operating expenses; requiring claims against the
   32         corporation to be paid from the account; requiring the
   33         board to appoint a president; specifying that the
   34         president serves at the pleasure of the board and is
   35         compensated as determined by the board; requiring the
   36         president to perform certain duties of the
   37         corporation; requiring the president to submit an
   38         annual budget to be approved by the board; requiring
   39         the corporation to notify the Department of Economic
   40         Opportunity upon final execution of certain contracts
   41         or agreements; providing notice requirements;
   42         providing an effective date.
   43          
   44  Be It Enacted by the Legislature of the State of Florida:
   45  
   46         Section 1. Section 288.1259, Florida Statutes, is created
   47  to read:
   48         288.1259 Florida Film Investment Corporation.—
   49         (1) DEFINITIONS.—As used in this section, the term:
   50         (a) “Account” means the Florida Film Investment Account.
   51         (b) “Board” means the corporation’s board of directors.
   52         (c) “Corporation” means the Florida Film Investment
   53  Corporation.
   54         (d) “In-state expenditures” means the costs of tangible
   55  property used in this state, and services performed by residents
   56  of this state, for scripted production, including preproduction
   57  and postproduction, but excluding costs for development,
   58  marketing, and distribution.
   59         (e) “President” means the chief executive officer of the
   60  corporation.
   61         (f) “Scripted production” or “production” means a feature
   62  film of at least 70 minutes in length, whether produced for
   63  theatrical, television, or direct-to-video release; a television
   64  series created to run multiple seasons and having an order for
   65  distribution of at least five episodes, or a miniseries, which
   66  is produced predominantly from a written screenplay or teleplay.
   67  The term does not include a commercial, infomercial, or
   68  political advertising; a reality show; a game show; an awards
   69  show; a music video; an industrial or educational film; a
   70  weather or market program; a sporting event or sporting event
   71  broadcast; a gala; a production that solicits funds; a home
   72  shopping program; a political program; a documentary; a
   73  gambling-related production; a concert production; a local,
   74  regional, or Internet-distributed-only news show or current
   75  events show; a sports news or sports recap show; a video game; a
   76  pornographic production; or any production deemed obscene under
   77  chapter 847. A production may be produced on or by film, video
   78  tape, or otherwise through the use of a motion picture camera,
   79  digital camera or device, video tape device, computer, any
   80  combination of the foregoing, or by any other means, method, or
   81  device.
   82         (g) “Television” includes broadcast, cable, and Internet
   83  television.
   84         (2) CORPORATION.—The Florida Film Investment Corporation is
   85  created as a corporation not for profit, to be incorporated
   86  under chapter 617 and approved by the Department of State. The
   87  corporation shall be organized on a nonstock basis. The purpose
   88  of the corporation is to encourage this state to be used as a
   89  site for scripted productions through equity investment in such
   90  productions.
   91         (3) POWERS AND LIMITATIONS.—
   92         (a) The corporation may make equity investments in scripted
   93  productions in this state pursuant to the criteria, bylaws,
   94  rules, and policies adopted by the board which must include all
   95  of the following:
   96         1. The corporation shall make investments in productions
   97  that it estimates will generate maximum economic impact to the
   98  state by providing high-wage jobs for Florida residents and
   99  significant in-state expenditures.
  100         2. The amount of the corporation’s investment in a
  101  production must not exceed the amount of the production’s in
  102  state expenditures for that production.
  103         3. The corporation’s investment in a production must rank
  104  and remain equal with the highest class of ownership in the
  105  production, such that, in the event of liquidation or
  106  bankruptcy, the corporation’s investment share retains the
  107  highest priority with other preferred shareholders.
  108         4. An equity investment made by the corporation under this
  109  section must be less than one-half of the production’s total
  110  shares or other ownership interest.
  111         5. The amount of the corporation’s investment in any one
  112  production must not exceed 12.5 percent of the sum of the
  113  remaining amount of uncommitted funds in the account plus the
  114  amounts of all outstanding investments in other productions.
  115         6. The corporation must not have any voting rights,
  116  creative control, or management authority over a production
  117  receiving an equity investment under this section.
  118         7. The corporation shall limit the return on its
  119  investments, establishing variable limits on returns that
  120  account for time value and reduce returns in exchange for a
  121  production’s early buyout of investment equity. For a production
  122  exercising an early buyout, the corporation shall limit its
  123  return on investment to the minimum that is actuarially
  124  measurable, credible, and sufficiently related to actual and
  125  expected losses to ensure the corporation’s self-sufficiency and
  126  preservation of the state appropriations provided for
  127  investment.
  128         8. The corporation shall conduct at least two investment
  129  cycles per fiscal year, committing no more than 40 percent of
  130  its total investment in productions for the fiscal year in any
  131  one investment cycle.
  132         (b) The board shall adopt objective criteria for making
  133  equity investments in scripted productions in this state. The
  134  criteria shall give preference to:
  135         1. Productions with the greatest economic impact to the
  136  state as demonstrated by the number of high-wage jobs provided
  137  for Florida residents and the amount of in-state expenditures as
  138  a percentage of total production expenditures.
  139         2. Productions in which the proposed investment by the
  140  corporation is lowest as a percentage of the production’s total
  141  shares or other ownership interest.
  142         3. Productions with the quickest deployment, in which the
  143  production’s in-state expenditures will be made soonest after
  144  the corporation’s investment.
  145         4. Productions by companies with a verifiable track record
  146  of producing successful productions.
  147         5. Productions by Florida-based production companies or by
  148  producers, writers, or directors who are Florida residents.
  149         6. Productions estimated to significantly increase tourism
  150  to the state by using a screenplay or teleplay based on a
  151  Florida story or including recognizable Florida locations.
  152         7. Productions whose development demonstrates the
  153  likelihood of their success, including, but not limited to,
  154  having a recognized director, actor, or other creative talent
  155  attached to the production.
  156         8. Productions in which the corporation’s investment is
  157  matched from local sources, such as county or municipal
  158  agencies, local film commissions, or other community resources.
  159         (c) The corporation may charge fees, such as application
  160  fees, from productions seeking equity investment under this
  161  section, but such fees may not exceed the reasonable estimated
  162  cost of the activity for which the fee is charged, such as the
  163  cost of processing an application.
  164         (4) BOARD OF DIRECTORS; POWERS AND DUTIES.—
  165         (a)1. The corporation shall have a board of directors
  166  consisting of seven members who are permanent residents of the
  167  state. Minority and gender representation must be considered
  168  when making appointments to the board. The board shall be
  169  composed of the following members:
  170         a. Two members with experience in investment banking and
  171  funds management focused on feature film and television
  172  production.
  173         b. Three members who have recent experience and are
  174  recognized leaders in the production of feature films or
  175  television in this state. Such board members may include, but
  176  are not limited to, producers, directors, production managers or
  177  supervisors, or similar persons in positions of production
  178  leadership.
  179         c. One member representing businesses that provide supplies
  180  for feature film and television production in the state, such as
  181  small businesses through which production companies buy or rent
  182  equipment, house and feed cast and crew, purchase supplies and
  183  raw materials, or build production infrastructure.
  184         d. One member representing the state’s feature film and
  185  television workforce.
  186         2. The initial board of directors shall be appointed as
  187  follows:
  188         a. The Florida Venture Forum and the Florida Chamber of
  189  Commerce shall each appoint one member pursuant to sub
  190  subparagraph 1.a.
  191         b. The Governor, the President of the Senate, and the
  192  Speaker of the House of Representatives shall each appoint one
  193  member pursuant to sub-subparagraph 1.b.
  194         c. The Department of Economic Opportunity shall appoint one
  195  member pursuant to sub-subparagraph 1.c.
  196         d. The Congress of Motion Picture Associations of Florida
  197  shall appoint one member pursuant to sub-subparagraph 1.d.
  198  
  199  To establish staggered terms, three of the initial board members
  200  shall be appointed to 1-year terms, two initial board members
  201  shall be appointed to 2-year terms, and two initial board
  202  members shall be appointed to 3-year terms.
  203         3. Board members shall serve for a term of 3 years and be
  204  eligible for reappointment. Vacancies shall be filled by the
  205  board within 30 days after the vacancy occurs.
  206         (b) Board members are subject to the code of ethics for
  207  public officers and employees as set forth in part III of
  208  chapter 112. A board member must abstain from voting and must
  209  comply with the disclosure requirements of s. 112.3143 if there
  210  appears to be a possible conflict under s. 112.311, s. 112.313,
  211  or s. 112.3143. This paragraph does not prohibit any principal
  212  by whom a board member is retained, as described in s.
  213  112.3143(1)(a), from applying for or receiving an equity
  214  investment under this section.
  215         (c) A board member must, with respect to an application for
  216  an equity investment which is pending before the corporation or
  217  an application the board member knows or reasonably expects will
  218  be submitted to the corporation within 180 days, refrain from
  219  commenting on or discussing the application outside of a board
  220  meeting with the applicant or any person retained by the
  221  applicant.
  222         (d) Board members shall serve without compensation but may
  223  be reimbursed in accordance with s. 112.061 for all necessary
  224  expenses in the performance of their duties, including attending
  225  board meetings and conducting board business.
  226         (e) The board shall:
  227         1. Before the expenditure of funds from the Florida Film
  228  Investment Account, adopt bylaws, rules, and policies necessary
  229  to carry out the corporation’s responsibilities under this
  230  section.
  231         2. Hold regularly scheduled meetings, at least once per
  232  investment cycle, in order to carry out the objectives and
  233  responsibilities of the board.
  234         (5) ACCOUNT.—
  235         (a) The board shall create the Florida Film Investment
  236  Account for the purpose of receiving state, federal, county,
  237  municipal, and private financial resources, and the return from
  238  investments of those resources, and for the purposes of this
  239  section. The account shall be under the exclusive control of the
  240  board.
  241         (b) Appropriations provided to the corporation for making
  242  equity investments shall be deposited into the account.
  243         (c) The board may deposit the funds of the account with
  244  state or federally chartered financial institutions in this
  245  state and may invest the remaining portion in permissible
  246  investments as described in s. 560.210(1).
  247         (d) Dividend payments received from the investments made by
  248  the corporation shall be redeposited in the account to be used
  249  to support the purposes of this section.
  250         (e) The corporation shall keep its operating expenses to
  251  the minimum amount necessary. Such operating expenses shall be
  252  funded by appropriations provided for that purpose and from net
  253  returns on investments made under this section.
  254         (f) Any claims against the account shall be paid solely
  255  from the account. Under no circumstances shall the credit of the
  256  state be pledged, other than funds appropriated by law to the
  257  account, nor shall the state be liable or obligated in any way
  258  for claims on the account or against the corporation.
  259         (6) PRESIDENT OF THE CORPORATION.—
  260         (a) The board shall appoint a president. The president must
  261  be knowledgeable about private and public financing of feature
  262  film and television projects.
  263         (b) The president shall serve at the pleasure of the board
  264  and shall receive a salary and benefits as determined by the
  265  board.
  266         (c) The president shall administer the programs of the
  267  corporation and perform such duties as are delegated by the
  268  board.
  269         (d) The president shall provide staff to the board as
  270  requested.
  271         (e) The president shall submit an annual budget to be
  272  approved by the board.
  273         (7) PUBLIC NOTICE OF INVESTMENTS.—The corporation shall
  274  notify the Department of Economic Opportunity upon final
  275  execution of each contract or agreement by which the corporation
  276  makes an equity investment in a production. The corporation
  277  shall also publish and maintain a copy of the notice on the
  278  corporation’s website while the investment remains outstanding.
  279  To provide adequate notice to the businesses and workforce that
  280  provide supplies for feature film and television production in
  281  the state, the notice shall include, but need not be limited to,
  282  a brief description of the production, the name of the
  283  production company, and, to the extent available, the names of
  284  the director, cinematographer, production designer, costume
  285  designer, and transportation coordinator.
  286         Section 2. This act shall take effect July 1, 2017.