Florida Senate - 2014                             CS for SB 1640
       
       
        
       By the Committees on Governmental Oversight and Accountability;
       and Commerce and Tourism
       
       
       
       
       585-03269-14                                          20141640c1
    1                        A bill to be entitled                      
    2         An act relating to the entertainment industry;
    3         amending s. 288.125, F.S.; specifying the application
    4         of the term “entertainment industry”; transferring,
    5         renumbering, and amending s. 288.1251, F.S.; renaming
    6         the Office of Film and Entertainment within the
    7         Department of Economic Opportunity as the Division of
    8         Film and Entertainment and housing the division within
    9         Enterprise Florida, Inc.; requiring Enterprise
   10         Florida, Inc., to conduct a national search for a film
   11         commissioner; requiring the president of Enterprise
   12         Florida, Inc., to hire the film commissioner; revising
   13         the requirements of the division’s 5-year plan;
   14         transferring, renumbering, and amending s. 288.1252,
   15         F.S.; revising the powers and duties of the Florida
   16         Film and Entertainment Advisory Council; conforming
   17         provisions to changes made by the act; transferring,
   18         renumbering, and amending s. 288.1253, F.S.;
   19         conforming provisions to changes made by the act;
   20         amending s. 288.1254, F.S.; redefining and deleting
   21         terms; requiring the department, rather than the
   22         Office of Film and Entertainment, to be responsible
   23         for applications for the entertainment industry
   24         financial incentive program; revising provisions
   25         relating to the application process, tax credit
   26         eligibility, election and distribution of tax credits,
   27         annual allocation of tax credits, forfeiture of tax
   28         credits, and annual report; extending the repeal date;
   29         conforming provisions to changes made by the act;
   30         specifying a date on which the applications on file
   31         with the department and not yet certified are deemed
   32         denied; amending s. 288.1258, F.S.; conforming
   33         provisions to changes made by the act; requiring the
   34         department to develop a standardized application form
   35         in cooperation with the division and other agencies;
   36         amending s. 288.92, F.S.; requiring Enterprise
   37         Florida, Inc., to have a division relating to film and
   38         entertainment; amending ss. 212.08, 220.1899, and
   39         477.0135, F.S.; conforming cross-references and
   40         provisions to changes made by the act; providing an
   41         effective date.
   42          
   43  Be It Enacted by the Legislature of the State of Florida:
   44  
   45         Section 1. Section 288.125, Florida Statutes, is amended to
   46  read:
   47         288.125 Definition of “entertainment industry”.—For the
   48  purposes of ss. 288.1254, 288.1258, 288.924, and 288.9241 ss.
   49  288.1251-288.1258, the term “entertainment industry” means those
   50  persons or entities engaged in the operation of motion picture
   51  or television studios or recording studios; those persons or
   52  entities engaged in the preproduction, production, or
   53  postproduction of motion pictures, made-for-television movies,
   54  television programming, digital media projects, commercial
   55  advertising, music videos, or sound recordings; and those
   56  persons or entities providing products or services directly
   57  related to the preproduction, production, or postproduction of
   58  motion pictures, made-for-television movies, television
   59  programming, digital media projects, commercial advertising,
   60  music videos, or sound recordings, including, but not limited
   61  to, the broadcast industry.
   62         Section 2. Section 288.1251, Florida Statutes, is
   63  transferred, renumbered as section 288.924, Florida Statutes,
   64  and amended to read:
   65         288.924 288.1251 Promotion and development of entertainment
   66  industry; Division Office of Film and Entertainment; creation;
   67  purpose; powers and duties.—
   68         (1) CREATION.—
   69         (a)The Division of Film and Entertainment is There is
   70  hereby created within Enterprise Florida, Inc., the department
   71  the Office of Film and Entertainment for the purpose of
   72  developing, marketing, promoting, and providing services to the
   73  state’s entertainment industry. The division shall serve as a
   74  liaison between the entertainment industry and other state and
   75  local governmental agencies, local film commissions, and labor
   76  organizations.
   77         (2)(b)COMMISSIONER.—Enterprise Florida, Inc., The
   78  department shall conduct a national search for a qualified
   79  person to fill the position of Commissioner of Film and
   80  Entertainment when the position is vacant. The president of
   81  Enterprise Florida, Inc., executive director of the department
   82  has the responsibility to hire the film commissioner.
   83  Qualifications for the film commissioner include, but are not
   84  limited to, the following:
   85         (a)1. A working knowledge of the equipment, personnel,
   86  financial, and day-to-day production operations of the
   87  industries to be served by the division Office of Film and
   88  Entertainment;
   89         (b)2. Marketing and promotion experience related to the
   90  film and entertainment industries to be served;
   91         (c)3. Experience working with a variety of individuals
   92  representing large and small entertainment-related businesses,
   93  industry associations, local community entertainment industry
   94  liaisons, and labor organizations; and
   95         (d)4. Experience working with a variety of state and local
   96  governmental agencies.
   97         (3)(2) POWERS AND DUTIES.—
   98         (a) The Division Office of Film and Entertainment, in
   99  performance of its duties, shall develop and:
  100         1. In consultation with the Florida Film and Entertainment
  101  Advisory Council, update a 5-year the strategic plan every 5
  102  years to guide the activities of the division Office of Film and
  103  Entertainment in the areas of entertainment industry
  104  development, marketing, promotion, liaison services, field
  105  office administration, and information. The plan shall:
  106         a. be annual in construction and ongoing in nature.
  107         1. At a minimum, the plan must discuss the following:
  108         a.b.Include recommendations relating to The organizational
  109  structure of the division, including any field offices outside
  110  the state.
  111         b. The coordination of the division with local or regional
  112  offices maintained by counties and regions of the state, local
  113  film commissions, and labor organizations, and the coordination
  114  of such entities with each other to facilitate a working
  115  relationship office.
  116         c.Strategies to identify, solicit, and recruit
  117  entertainment production opportunities for the state, including
  118  implementation of programs for rural and urban areas designed to
  119  develop and promote the state’s entertainment industry.
  120         d.c.Include An annual budget projection for the division
  121  office for each year of the plan.
  122         d. Include an operational model for the office to use in
  123  implementing programs for rural and urban areas designed to:
  124         (I) develop and promote the state’s entertainment industry.
  125         (II) Have the office serve as a liaison between the
  126  entertainment industry and other state and local governmental
  127  agencies, local film commissions, and labor organizations.
  128         (III) Gather statistical information related to the state’s
  129  entertainment industry.
  130         e.(IV)Provision of Provide information and service to
  131  businesses, communities, organizations, and individuals engaged
  132  in entertainment industry activities.
  133         (V) Administer field offices outside the state and
  134  coordinate with regional offices maintained by counties and
  135  regions of the state, as described in sub-sub-subparagraph (II),
  136  as necessary.
  137         f.e.Include Performance standards and measurable outcomes
  138  for the programs to be implemented by the division office.
  139         2. The plan shall be annually reviewed and approved by the
  140  board of directors of Enterprise Florida, Inc.
  141         f. Include an assessment of, and make recommendations on,
  142  the feasibility of creating an alternative public-private
  143  partnership for the purpose of contracting with such a
  144  partnership for the administration of the state’s entertainment
  145  industry promotion, development, marketing, and service
  146  programs.
  147         2. Develop, market, and facilitate a working relationship
  148  between state agencies and local governments in cooperation with
  149  local film commission offices for out-of-state and indigenous
  150  entertainment industry production entities.
  151         3. Implement a structured methodology prescribed for
  152  coordinating activities of local offices with each other and the
  153  commissioner’s office.
  154         (b) The division shall also:
  155         1.4. Represent the state’s indigenous entertainment
  156  industry to key decisionmakers within the national and
  157  international entertainment industry, and to state and local
  158  officials.
  159         2.5. Prepare an inventory and analysis of the state’s
  160  entertainment industry, including, but not limited to,
  161  information on crew, related businesses, support services, job
  162  creation, talent, and economic impact and coordinate with local
  163  offices to develop an information tool for common use.
  164         6. Identify, solicit, and recruit entertainment production
  165  opportunities for the state.
  166         3.7. Assist rural communities and other small communities
  167  in the state in developing the expertise and capacity necessary
  168  for such communities to develop, market, promote, and provide
  169  services to the state’s entertainment industry.
  170         (c)(b) The division Office of Film and Entertainment, in
  171  the performance of its duties, may:
  172         1. Conduct or contract for specific promotion and marketing
  173  functions, including, but not limited to, production of a
  174  statewide directory, production and maintenance of an Internet
  175  website, establishment and maintenance of a toll-free telephone
  176  number, organization of trade show participation, and
  177  appropriate cooperative marketing opportunities.
  178         2. Conduct its affairs, carry on its operations, establish
  179  offices, and exercise the powers granted by this act in any
  180  state, territory, district, or possession of the United States.
  181         3. Carry out any program of information, special events, or
  182  publicity designed to attract entertainment industry to Florida.
  183         4. Develop relationships and leverage resources with other
  184  public and private organizations or groups in their efforts to
  185  publicize to the entertainment industry in this state, other
  186  states, and other countries the depth of Florida’s entertainment
  187  industry talent, crew, production companies, production
  188  equipment resources, related businesses, and support services,
  189  including the establishment of and expenditure for a program of
  190  cooperative advertising with these public and private
  191  organizations and groups in accordance with the provisions of
  192  chapter 120.
  193         5. Provide and arrange for reasonable and necessary
  194  promotional items and services for such persons as the division
  195  office deems proper in connection with the performance of the
  196  promotional and other duties of the division office.
  197         6. Prepare an annual economic impact analysis on
  198  entertainment industry-related activities in the state.
  199         7. Request or accept any grant, payment, or gift of funds
  200  or property made by this state, the United States, or any
  201  department or agency thereof, or by any individual, firm,
  202  corporation, municipality, county, or organization, for any or
  203  all of the purposes of the Office of Film and Entertainment’s 5
  204  year strategic plan or those permitted activities enumerated in
  205  this paragraph. Such funds shall be deposited in the Grants and
  206  Donations Trust Fund of the Executive Office of the Governor for
  207  use by the Office of Film and Entertainment in carrying out its
  208  responsibilities and duties as delineated in law. The division
  209  office may expend such funds in accordance with the terms and
  210  conditions of any such grant, payment, or gift in the pursuit of
  211  its administration or in support of fulfilling its duties and
  212  responsibilities. The division office shall separately account
  213  for the public funds and the private funds deposited into the
  214  trust fund.
  215         Section 3. Section 288.1252, Florida Statutes, is
  216  transferred, renumbered as section 288.9242, Florida Statutes,
  217  and amended to read:
  218         288.9242 288.1252 Florida Film and Entertainment Advisory
  219  Council; creation; purpose; membership; powers and duties.—
  220         (1) CREATION.—There is created within the department, for
  221  administrative purposes only, the Florida Film and Entertainment
  222  Advisory Council.
  223         (1)(2) PURPOSE.—The purpose of the Florida Film and
  224  Entertainment Advisory Council is to serve as an advisory body
  225  to the Division of Film and Entertainment department and to the
  226  Office of Film and Entertainment to provide these offices with
  227  industry insight and expertise related to developing, marketing,
  228  and promoting, and providing service to the state’s
  229  entertainment industry.
  230         (2)(3) MEMBERSHIP.—
  231         (a) The council shall consist of 17 members, 7 to be
  232  appointed by the Governor, 5 to be appointed by the President of
  233  the Senate, and 5 to be appointed by the Speaker of the House of
  234  Representatives.
  235         (b) When making appointments to the council, the Governor,
  236  the President of the Senate, and the Speaker of the House of
  237  Representatives shall appoint persons who are residents of the
  238  state and who are highly knowledgeable of, active in, and
  239  recognized leaders in Florida’s motion picture, television,
  240  video, sound recording, or other entertainment industries. These
  241  persons shall include, but not be limited to, representatives of
  242  local film commissions, representatives of entertainment
  243  associations, a representative of the broadcast industry,
  244  representatives of labor organizations in the entertainment
  245  industry, and board chairs, presidents, chief executive
  246  officers, chief operating officers, or persons of comparable
  247  executive position or stature of leading or otherwise important
  248  entertainment industry businesses and offices. Council members
  249  shall be appointed in such a manner as to equitably represent
  250  the broadest spectrum of the entertainment industry and
  251  geographic areas of the state.
  252         (c) Council members shall serve for 4-year terms.
  253         (d) Subsequent appointments shall be made by the official
  254  who appointed the council member whose expired term is to be
  255  filled.
  256         (e) A representative of Enterprise Florida, Inc., A
  257  representative of Workforce Florida, Inc., and a representative
  258  of VISIT Florida shall serve as ex officio, nonvoting members of
  259  the council, and shall be in addition to the 17 appointed
  260  members of the council.
  261         (f) Absence from three consecutive meetings shall result in
  262  automatic removal from the council.
  263         (g) A vacancy on the council shall be filled for the
  264  remainder of the unexpired term by the official who appointed
  265  the vacating member.
  266         (h) No more than one member of the council may be an
  267  employee of any one company, organization, or association.
  268         (i) Any member shall be eligible for reappointment but may
  269  not serve more than two consecutive terms.
  270         (3)(4) MEETINGS; ORGANIZATION.—
  271         (a) The council shall meet no less frequently than once
  272  each quarter of the calendar year, but may meet more often as
  273  set by the council.
  274         (b) The council shall annually elect from its appointed
  275  membership one member to serve as chair of the council and one
  276  member to serve as vice chair. The Division of Film and
  277  Entertainment Office of Film and Entertainment shall provide
  278  staff assistance to the council, which shall include, but not be
  279  limited to, keeping records of the proceedings of the council,
  280  and serving as custodian of all books, documents, and papers
  281  filed with the council.
  282         (c) A majority of the members of the council shall
  283  constitute a quorum.
  284         (d) Members of the council shall serve without
  285  compensation, but shall be entitled to reimbursement for per
  286  diem and travel expenses in accordance with s. 112.061 while in
  287  performance of their duties.
  288         (4)(5) POWERS AND DUTIES.—The Florida Film and
  289  Entertainment Advisory Council shall have all the powers
  290  necessary or convenient to carry out and effectuate the purposes
  291  and provisions of this act, including, but not limited to, the
  292  power to:
  293         (a) Adopt bylaws for the governance of its affairs and the
  294  conduct of its business.
  295         (b) Advise the Division of Film and Entertainment and
  296  consult with the Office of Film and Entertainment on the
  297  content, development, and implementation of the 5-year strategic
  298  plan to guide the activities of the office.
  299         (c) Review the Commissioner of Film and Entertainment’s
  300  administration of the programs related to the strategic plan,
  301  and Advise the Division of Film and Entertainment commissioner
  302  on its the programs and any changes that might be made to better
  303  meet the strategic plan.
  304         (d) Consider and study the needs of the entertainment
  305  industry for the purpose of advising the Division of Film and
  306  Entertainment film commissioner and the department.
  307         (e) Identify and make recommendations on state agency and
  308  local government actions that may have an impact on the
  309  entertainment industry or that may appear to industry
  310  representatives as an official state or local action affecting
  311  production in the state, and advise the Division of Film and
  312  Entertainment of such actions.
  313         (f) Consider all matters submitted to it by the Division of
  314  Film and Entertainment film commissioner and the department.
  315         (g) Advise and consult with the film commissioner and the
  316  department, at their request or upon its own initiative,
  317  regarding the promulgation, administration, and enforcement of
  318  all laws and rules relating to the entertainment industry.
  319         (g)(h) Suggest policies and practices for the conduct of
  320  business by the Office of Film and Entertainment or by the
  321  department that will improve interaction with internal
  322  operations affecting the entertainment industry and will enhance
  323  the economic development in initiatives of the state for the
  324  industry.
  325         (i) Appear on its own behalf before boards, commissions,
  326  departments, or other agencies of municipal, county, or state
  327  government, or the Federal Government.
  328         Section 4. Section 288.1253, Florida Statutes, is
  329  transferred, renumbered as section 288.9241, Florida Statutes,
  330  and amended to read:
  331         288.9241 288.1253 Travel and entertainment expenses.—
  332         (1) As used in this section, the term “travel expenses”
  333  means the actual, necessary, and reasonable costs of
  334  transportation, meals, lodging, and incidental expenses normally
  335  incurred by an employee of the Division Office of Film and
  336  Entertainment, which costs are defined and prescribed by rules
  337  adopted by the department, subject to approval by the Chief
  338  Financial Officer.
  339         (2) Notwithstanding the provisions of s. 112.061, the
  340  department shall adopt rules by which the Division of Film and
  341  Entertainment it may make expenditures by reimbursement to: the
  342  Governor, the Lieutenant Governor, security staff of the
  343  Governor or Lieutenant Governor, the Commissioner of Film and
  344  Entertainment, or staff of the Division Office of Film and
  345  Entertainment for travel expenses or entertainment expenses
  346  incurred by such individuals solely and exclusively in
  347  connection with the performance of the statutory duties of the
  348  division Office of Film and Entertainment. The rules are subject
  349  to approval by the Chief Financial Officer before adoption. The
  350  rules shall require the submission of paid receipts, or other
  351  proof of expenditure prescribed by the Chief Financial Officer,
  352  with any claim for reimbursement.
  353         (3) The Division Office of Film and Entertainment shall
  354  include in the annual report for the entertainment industry
  355  financial incentive program required under s. 288.1254(10) a
  356  report of the division’s office’s expenditures for the previous
  357  fiscal year. The report must consist of a summary of all travel,
  358  entertainment, and incidental expenses incurred within the
  359  United States and all travel, entertainment, and incidental
  360  expenses incurred outside the United States, as well as a
  361  summary of all successful projects that developed from such
  362  travel.
  363         (4) The Division Office of Film and Entertainment and its
  364  employees and representatives, when authorized, may accept and
  365  use complimentary travel, accommodations, meeting space, meals,
  366  equipment, transportation, and any other goods or services
  367  necessary for or beneficial to the performance of the division’s
  368  office’s duties and purposes, so long as such acceptance or use
  369  is not in conflict with part III of chapter 112. The department
  370  shall, by rule, develop internal controls to ensure that such
  371  goods or services accepted or used pursuant to this subsection
  372  are limited to those that will assist solely and exclusively in
  373  the furtherance of the division’s office’s goals and are in
  374  compliance with part III of chapter 112.
  375         (5) Any claim submitted under this section is not required
  376  to be sworn to before a notary public or other officer
  377  authorized to administer oaths, but any claim authorized or
  378  required to be made under any provision of this section shall
  379  contain a statement that the expenses were actually incurred as
  380  necessary travel or entertainment expenses in the performance of
  381  official duties of the Division Office of Film and Entertainment
  382  and shall be verified by written declaration that it is true and
  383  correct as to every material matter. Any person who willfully
  384  makes and subscribes to any claim which he or she does not
  385  believe to be true and correct as to every material matter or
  386  who willfully aids or assists in, procures, or counsels or
  387  advises with respect to, the preparation or presentation of a
  388  claim pursuant to this section that is fraudulent or false as to
  389  any material matter, whether such falsity or fraud is with the
  390  knowledge or consent of the person authorized or required to
  391  present the claim, commits a misdemeanor of the second degree,
  392  punishable as provided in s. 775.082 or s. 775.083. Whoever
  393  receives a reimbursement by means of a false claim is civilly
  394  liable, in the amount of the overpayment, for the reimbursement
  395  of the public fund from which the claim was paid.
  396         Section 5. Section 288.1254, Florida Statutes, is amended
  397  to read:
  398         288.1254 Entertainment industry financial incentive
  399  program.—
  400         (1) DEFINITIONS.—As used in this section, the term:
  401         (a) “Certified production” means a qualified production
  402  that has tax credits allocated to it by the department based on
  403  the production’s estimated qualified expenditures, up to the
  404  production’s maximum certified amount of tax credits, by the
  405  department. The term does not include a production if its first
  406  day of principal photography or project start date in this state
  407  occurs before the production is certified by the department,
  408  unless the production spans more than 1 fiscal year, was a
  409  certified production on its first day of principal photography
  410  or project start date in this state, and submits an application
  411  for continuing the same production for the subsequent fiscal
  412  year.
  413         (b) “Digital media project” means a production of
  414  interactive entertainment that is produced for distribution in
  415  commercial or educational markets. The term includes a video
  416  game or production intended for Internet or wireless
  417  distribution, an interactive website, digital animation, and
  418  visual effects, including, but not limited to, three-dimensional
  419  movie productions and movie conversions. The term does not
  420  include a production that contains content that is obscene as
  421  defined in s. 847.001.
  422         (c) “High-impact digital media project” means a digital
  423  media project that has qualified expenditures greater than $4.5
  424  million.
  425         (d) “High-impact television series” means:
  426         1. A production created to run multiple production seasons
  427  which has and having an estimated order of at least seven
  428  episodes per season and qualified expenditures of at least
  429  $625,000 per episode; or
  430         2. A telenovela that has qualified expenditures of more
  431  than $4.5 million; a minimum of 45 principal photography days
  432  filmed in this state; a production cast, including background
  433  actors, and crew of which at least 90 percent are legal
  434  residents of this state; and at least 90 percent of its
  435  production occurring in this state.
  436         (e) “Off-season certified production” means a feature film,
  437  independent film, or television series or pilot that films 75
  438  percent or more of its principal photography days from June 1
  439  through November 30.
  440         (e)(f) “Principal photography” means the filming of major
  441  or significant components of the qualified production which
  442  involve lead actors.
  443         (f)(g) “Production” means a theatrical, or direct-to-video,
  444  or direct-to-internet motion picture; a made-for-television
  445  motion picture; visual effects or digital animation sequences
  446  produced in conjunction with a motion picture; a commercial; a
  447  music video; an industrial or educational film; an infomercial;
  448  a documentary film; a television pilot program; a presentation
  449  for a television pilot program; a television series, including,
  450  but not limited to, a drama, a reality show, a comedy, a soap
  451  opera, a telenovela, a game show, an awards show, or a
  452  miniseries production; a direct-to-internet television series;
  453  or a digital media project by the entertainment industry. One
  454  season of a television series is considered one production. The
  455  term does not include a weather or market program; a sporting
  456  event or a sporting event broadcast; a gala; a production that
  457  solicits funds; a home shopping program; a political program; a
  458  political documentary; political advertising; a gambling-related
  459  project or production; a concert production; a local, regional,
  460  or Internet-distributed-only news show or current-events show; a
  461  sports news or sports recap show; a pornographic production; or
  462  any production deemed obscene under chapter 847. A production
  463  may be produced on or by film, tape, or otherwise by means of a
  464  motion picture camera; electronic camera or device; tape device;
  465  computer; any combination of the foregoing; or any other means,
  466  method, or device.
  467         (g)(h) “Production expenditures” means the costs of
  468  tangible and intangible property used for, and services
  469  performed primarily and customarily in, production, including
  470  preproduction and postproduction, but excluding costs for
  471  development, marketing, and distribution. The term includes, but
  472  is not limited to:
  473         1. Wages, salaries, or other compensation paid to legal
  474  residents of this state, including amounts paid through payroll
  475  service companies, for technical and production crews,
  476  directors, producers, and performers.
  477         2. Net expenditures for sound stages, backlots, production
  478  editing, digital effects, sound recordings, sets, and set
  479  construction.
  480         3. Net expenditures for rental equipment, including, but
  481  not limited to, cameras and grip or electrical equipment.
  482         4. Up to $300,000 of the costs of newly purchased computer
  483  software and hardware unique to the project, including servers,
  484  data processing, and visualization technologies, which are
  485  located in and used exclusively in the state for the production
  486  of digital media.
  487         5. Expenditures for meals, travel, and accommodations. For
  488  purposes of this paragraph, the term “net expenditures” means
  489  the actual amount of money a qualified production spent for
  490  equipment or other tangible personal property, after subtracting
  491  any consideration received for reselling or transferring the
  492  item after the qualified production ends, if applicable.
  493         (h)(i) “Qualified expenditures” means production
  494  expenditures incurred in this state by a qualified production
  495  for:
  496         1. Goods purchased or leased from, or services, including,
  497  but not limited to, insurance costs and bonding, payroll
  498  services, and legal fees, which are provided by, a vendor or
  499  supplier in this state that is registered with the Department of
  500  State or the Department of Revenue, has a physical location in
  501  this state, and employs one or more legal residents of this
  502  state. This does not include rebilled goods or services provided
  503  by an in-state company from out-of-state vendors or suppliers.
  504  When services provided by the vendor or supplier include
  505  personal services or labor, only personal services or labor
  506  provided by residents of this state, evidenced by the required
  507  documentation of residency in this state, qualify.
  508         2. Payments to legal residents of this state in the form of
  509  salary, wages, or other compensation up to a maximum of $400,000
  510  per resident unless otherwise specified in subsection (4). A
  511  completed declaration of residency in this state must accompany
  512  the documentation submitted to the department office for
  513  reimbursement.
  514  
  515  For a qualified production involving an event, such as an awards
  516  show, the term does not include expenditures solely associated
  517  with the event itself and not directly required by the
  518  production. The term does not include expenditures incurred
  519  before certification, with the exception of those incurred for a
  520  commercial, a music video, or the pickup of additional episodes
  521  of a high-impact television series within a single season. Under
  522  no circumstances may the qualified production include in the
  523  calculation for qualified expenditures the original purchase
  524  price for equipment or other tangible property that is later
  525  sold or transferred by the qualified production for
  526  consideration. In such cases, the qualified expenditure is the
  527  net of the original purchase price minus the consideration
  528  received upon sale or transfer.
  529         (i)(j) “Qualified production” means a production in this
  530  state meeting the requirements of this section. The term does
  531  not include a production:
  532         1. In which, for the first 2 years of the incentive
  533  program, less than 50 percent, and thereafter, less than 70 60
  534  percent, of the positions that make up its production cast and
  535  below-the-line production crew, or, in the case of digital media
  536  projects, less than 80 75 percent of such positions, are filled
  537  by legal residents of this state, whose residency is
  538  demonstrated by a valid Florida driver driver’s license or other
  539  state-issued identification confirming residency, or students
  540  enrolled full-time in a film-and-entertainment-related course of
  541  study at an institution of higher education in this state; or
  542         2. That contains obscene content as defined in s.
  543  847.001(10).
  544         (j)(k) “Qualified production company” means a corporation,
  545  limited liability company, partnership, or other legal entity
  546  engaged in one or more productions in this state.
  547         (l) “Qualified digital media production facility” means a
  548  building or series of buildings and their improvements in which
  549  data processing, visualization, and sound synchronization
  550  technologies are regularly applied for the production of
  551  qualified digital media projects or the digital animation
  552  components of qualified productions.
  553         (m) “Qualified production facility” means a building or
  554  complex of buildings and their improvements and associated
  555  backlot facilities in which regular filming activity for film or
  556  television has occurred for a period of no less than 1 year and
  557  which contain at least one sound stage of at least 7,800 square
  558  feet.
  559         (n) “Regional population ratio” means the ratio of the
  560  population of a region to the population of this state. The
  561  regional population ratio applicable to a given fiscal year is
  562  the regional population ratio calculated by the Office of Film
  563  and Entertainment using the latest official estimates of
  564  population certified under s. 186.901, available on the first
  565  day of that fiscal year.
  566         (o) “Regional tax credit ratio” means a ratio the numerator
  567  of which is the sum of tax credits awarded to productions in a
  568  region to date plus the tax credits certified, but not yet
  569  awarded, to productions currently in that region and the
  570  denominator of which is the sum of all tax credits awarded in
  571  the state to date plus all tax credits certified, but not yet
  572  awarded, to productions currently in the state. The regional tax
  573  credit ratio applicable to a given year is the regional tax
  574  credit ratio calculated by the Office of Film and Entertainment
  575  using credit award and certification information available on
  576  the first day of that fiscal year.
  577         (p) “Underutilized region” for a given state fiscal year
  578  means a region with a regional tax credit ratio applicable to
  579  that fiscal year that is lower than its regional population
  580  ratio applicable to that fiscal year. The following regions are
  581  established for purposes of making this determination:
  582         1. North Region, consisting of Alachua, Baker, Bay,
  583  Bradford, Calhoun, Clay, Columbia, Dixie, Duval, Escambia,
  584  Franklin, Gadsden, Gilchrist, Gulf, Hamilton, Holmes, Jackson,
  585  Jefferson, Lafayette, Leon, Levy, Liberty, Madison, Nassau,
  586  Okaloosa, Putnam, Santa Rosa, St. Johns, Suwannee, Taylor,
  587  Union, Wakulla, Walton, and Washington Counties.
  588         2. Central East Region, consisting of Brevard, Flagler,
  589  Indian River, Lake, Okeechobee, Orange, Osceola, Seminole, St.
  590  Lucie, and Volusia Counties.
  591         3. Central West Region, consisting of Citrus, Hernando,
  592  Hillsborough, Manatee, Marion, Polk, Pasco, Pinellas, Sarasota,
  593  and Sumter Counties.
  594         4. Southwest Region, consisting of Charlotte, Collier,
  595  DeSoto, Glades, Hardee, Hendry, Highlands, and Lee Counties.
  596         5. Southeast Region, consisting of Broward, Martin, Miami
  597  Dade, Monroe, and Palm Beach Counties.
  598         (k)(q) “Interactive website” means a website or group of
  599  websites that includes interactive and downloadable content, and
  600  creates 25 new Florida full-time equivalent positions operating
  601  from a principal place of business located within Florida. An
  602  interactive website or group of websites must provide
  603  documentation that those jobs were created to the department
  604  before Office of Film and Entertainment prior to the award of
  605  tax credits. Each subsequent program application must provide
  606  proof that 25 Florida full-time equivalent positions are
  607  maintained.
  608         (2) CREATION AND PURPOSE OF PROGRAM.—The entertainment
  609  industry financial incentive program is created within the
  610  Office of Film and Entertainment. The purpose of this program is
  611  to encourage the use of this state as a site for entertainment
  612  production, for filming, and for the digital production of
  613  entertainment films, and to develop and sustain the workforce
  614  and infrastructure for film, digital media, and entertainment
  615  production.
  616         (3) APPLICATION PROCEDURE; APPROVAL PROCESS.—
  617         (a) Program application.—A qualified production company
  618  producing a qualified production in this state may submit a
  619  program application to the department Office of Film and
  620  Entertainment for the purpose of determining qualification for
  621  an award of tax credits authorized by this section no earlier
  622  than 150 180 days before the first day of principal photography
  623  or project start date in this state. The applicant shall provide
  624  the department Office of Film and Entertainment with information
  625  required to determine whether the production is a qualified
  626  production and to determine the qualified expenditures and other
  627  information necessary for the department office to determine
  628  eligibility for the tax credit.
  629         (b) Required documentation.—The department Office of Film
  630  and Entertainment shall develop an application form for
  631  qualifying an applicant as a qualified production. The form must
  632  include, but need not be limited to, production-related
  633  information concerning employment of residents in this state, a
  634  detailed budget of planned qualified expenditures and aggregate
  635  nonqualified expenditures in this state, proof of financing for
  636  the production, and the applicant’s signed affirmation that the
  637  information on the form has been verified and is correct. The
  638  Division Office of Film and Entertainment of Enterprise Florida,
  639  Inc., and local film commissions shall distribute the form.
  640         (c) Application process.—The department Office of Film and
  641  Entertainment shall establish a process by which an application
  642  is accepted and reviewed and by which tax credit eligibility and
  643  award amount are determined. The department may consult with the
  644  Division Office of Film and Entertainment of Enterprise Florida,
  645  Inc., or may request assistance from a duly appointed local film
  646  commission in determining compliance with this section.
  647         1. Applications may be accepted until, and shall include,
  648  the application that causes the amount of tax credit eligibility
  649  requested to exceed 125 percent of tax credits allocated for the
  650  fiscal year under paragraph (7)(a). Applications received after
  651  all tax credits allocated for the fiscal year have been
  652  certified shall be assigned a queue number that is determined by
  653  the date and time the application was received by the
  654  department. Applications in the queue are deemed denied on June
  655  30 of each year.
  656         2. A certified high-impact television series may submit an
  657  initial application for no more than two successive seasons,
  658  notwithstanding the fact that the second season has successive
  659  seasons have not been ordered. The successive season’s qualified
  660  expenditure amounts for the second season shall be based on the
  661  current season’s estimated qualified expenditures. Upon the
  662  completion of production of each season, a high-impact
  663  television series may submit an application for no more than one
  664  additional season. To be certified for credits, the applicant
  665  must provide proof that the additional season has been ordered
  666  as part of the application for the additional season.
  667         (d) Certification.—
  668         1. The department Office of Film and Entertainment shall
  669  review the application within 15 business days after receipt.
  670  Upon the department’s its determination, in consultation with
  671  the Division of Film and Entertainment of Enterprise Florida,
  672  Inc., that the application contains all the information required
  673  by this subsection and meets the criteria set out in this
  674  section, the department Office of Film and Entertainment shall
  675  deny qualify the applicant and recommend to the department that
  676  the applicant be certified for the maximum tax credit award
  677  amount. Within 5 business days after receipt of the
  678  recommendation, the department shall reject the application
  679  recommendation or certify the maximum recommended tax credit
  680  award, if any funds are available, to the applicant and to the
  681  executive director of the Department of Revenue.
  682         2. In a fiscal year, the department may certify only the
  683  amount of tax credits allocated for that fiscal year, as
  684  provided under subsection (7). However, the department may
  685  certify a high-impact television series for additional tax
  686  credits allocated in a future fiscal year if the high-impact
  687  television series has an executed contract or order for season
  688  renewal effective for the future fiscal year from which tax
  689  credits would be allocated. The department may certify one
  690  additional ordered season per future fiscal year in which the
  691  qualified production would occur.
  692         (e) Employment.—Upon certification by the department, the
  693  production must provide the department and the Division of Film
  694  and Entertainment of Enterprise Florida, Inc., with a single
  695  point of contact and information related to the production’s
  696  needs for cast, crew, contractors, and vendors. The division
  697  shall publish this information online, including the type of
  698  production, the projected start date of the production, the
  699  locations in this state for such production, and the e-mail or
  700  other contact information for the production’s point of contact.
  701  The department, in consultation with the division, may adopt
  702  procedures for a production to post such information itself
  703  within 7 days after certification.
  704         (f)(e)Grounds for denial.—
  705         1. The department Office of Film and Entertainment shall
  706  deny an application if it determines that the application is not
  707  complete, or the production or application does not meet the
  708  requirements of this section, or there are no additional credits
  709  for certification as provided under paragraph (c). Within 90
  710  days after submitting a program application, except with respect
  711  to applications in the independent and emerging media queue, a
  712  production must provide proof of project financing to the Office
  713  of Film and Entertainment, otherwise the project is deemed
  714  denied and withdrawn. A project that has been denied withdrawn
  715  may submit a new application upon providing the Office of Film
  716  and Entertainment proof of financing.
  717         2. The department shall deny a certified production upon
  718  any circumstance affecting the reasonable schedule or timely
  719  completion of the certified production, including a break in
  720  production, change in the production schedule, or loss of
  721  financing for the production. A certified production must notify
  722  the department within 5 days after any circumstance affecting
  723  its timely completion. A certified production may not be denied
  724  if it provides the department with proof of replacement
  725  financing within 10 days after the loss of financing for the
  726  production. To keep a reasonable schedule, the certified
  727  production must begin principal photography or the production
  728  project in this state no more than 45 calendar days before or
  729  after the principal photography or project start date provided
  730  in the production’s program application.
  731         (g)(f)Verification of actual qualified expenditures.—
  732         1. The department, in consultation with the Division of
  733  Film and Entertainment, Office of Film and Entertainment shall
  734  develop a process to verify the actual qualified expenditures of
  735  a certified production. The process must require:
  736         a. A certified production to submit, within 180 days in a
  737  timely manner after production ends in this state and after
  738  making all of its qualified expenditures in this state, data
  739  substantiating each qualified expenditure, including
  740  documentation on the net expenditure on equipment and other
  741  tangible personal property by the qualified production, to an
  742  independent certified public accountant licensed in this state;
  743         b. Such accountant to conduct a compliance audit, at the
  744  certified production’s expense, to substantiate each qualified
  745  expenditure and submit the results as a report, along with the
  746  required substantiating data, to the department Office of Film
  747  and Entertainment; and
  748         c. The department Office of Film and Entertainment to
  749  review the accountant’s submittal and verify report to the
  750  department the final verified amount of actual qualified
  751  expenditures made by the certified production.
  752         2. The department shall determine and approve the final tax
  753  credit award amount to each certified applicant based on the
  754  final verified amount of actual qualified expenditures and shall
  755  notify the executive director of the Department of Revenue in
  756  writing that the certified production has met the requirements
  757  of the incentive program and of the final amount of the tax
  758  credit award. The final tax credit award amount may not exceed
  759  the maximum tax credit award amount certified under paragraph
  760  (d).
  761         (h)(g)Promoting Florida.—The department Office of Film and
  762  Entertainment shall ensure that, as a condition of receiving a
  763  tax credit under this section, marketing materials promoting
  764  this state as a tourist destination or film and entertainment
  765  production destination are included, when appropriate, at no
  766  cost to the state, which must, at a minimum, include placement
  767  of a “Filmed in Florida” or “Produced in Florida” logo in the
  768  opening titles and end credits. The placement of a “Filmed in
  769  Florida” or “Produced in Florida” logo on all packaging material
  770  and hard media is also required, unless such placement is
  771  prohibited by licensing or other contractual obligations. The
  772  size and placement of such logo shall be commensurate to other
  773  logos used. If no logos are used, the statement “Filmed in
  774  Florida using Florida’s Entertainment Industry Financial
  775  Incentive,” or a similar statement approved by the Division
  776  Office of Film and Entertainment of Enterprise Florida, Inc.,
  777  shall be used. The Division Office of Film and Entertainment of
  778  Enterprise Florida, Inc., shall provide a logo and supply it for
  779  the purposes specified in this paragraph. A 30-second “Visit
  780  Florida” promotional video must also be included on all optical
  781  disc formats of a film, unless such placement is prohibited by
  782  licensing or other contractual obligations. The 30-second
  783  promotional video shall be approved and provided by the Florida
  784  Tourism Industry Marketing Corporation in consultation with the
  785  Division Commissioner of Film and Entertainment of Enterprise
  786  Florida, Inc.
  787         (4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES;
  788  ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS;
  789  PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND
  790  ACQUISITIONS.—
  791         (a) Priority for tax credit award.—The priority of a
  792  qualified production for tax credit awards must be determined on
  793  a first-come, first-served basis within its appropriate queue.
  794  Each qualified production must be placed into the appropriate
  795  queue and is subject to the requirements of that queue.
  796         (b) Tax credit eligibility.—
  797         1. General production queue.—Ninety-four percent of tax
  798  credits authorized pursuant to subsection (7) (6) in any state
  799  fiscal year must be dedicated to the general production queue.
  800  The general production queue consists of all qualified
  801  productions other than those eligible for the commercial and
  802  music video queue or the independent and emerging media
  803  production queue. A qualified production that demonstrates a
  804  minimum of $625,000 in qualified expenditures is eligible for
  805  tax credits equal to 20 percent of its actual qualified
  806  expenditures, up to a maximum of $8 million. A qualified
  807  production that incurs qualified expenditures during multiple
  808  state fiscal years may combine those expenditures to satisfy the
  809  $625,000 minimum threshold.
  810         a. For the first 10 months of each fiscal year, 20 percent
  811  of the credits in the general production queue shall be set
  812  aside for qualified productions in underutilized counties. A
  813  qualified production eligible for these funds is a production
  814  for which at least 70 percent of its principal photography days
  815  occur within an underutilized county designated as an
  816  underutilized county at the time that the production is
  817  certified. The term “underutilized county” means a county in
  818  which less than $500,000 in qualified expenditures were made in
  819  the last 2 fiscal years. Any funds not yet certified from this
  820  set-aside at the end of the 10-month period may be certified to
  821  qualified productions pursuant to this section An off-season
  822  certified production that is a feature film, independent film,
  823  or television series or pilot is eligible for an additional 5
  824  percent tax credit on actual qualified expenditures. An off
  825  season certified production that does not complete 75 percent of
  826  principal photography due to a disruption caused by a hurricane
  827  or tropical storm may not be disqualified from eligibility for
  828  the additional 5 percent credit as a result of the disruption.
  829         b. If more than 45 percent of the sum of total tax credits
  830  initially certified and awarded after April 1, 2012, total tax
  831  credits initially certified after April 1, 2012, but not yet
  832  awarded, and total tax credits available for certification after
  833  April 1, 2012, but not yet certified has been awarded for high
  834  impact television series, then no high-impact television series
  835  is eligible for tax credits under this subparagraph. Tax credits
  836  initially certified for a high-impact television series after
  837  April 1, 2012, may not be awarded if the award will cause the
  838  percentage threshold in this sub-subparagraph to be exceeded.
  839  This sub-subparagraph does not prohibit the award of tax credits
  840  certified before April 1, 2012, for high-impact television
  841  series.
  842         b.c.Subject to sub-subparagraph b., First priority in the
  843  queue for tax credit awards not yet certified shall be given to
  844  high-impact television series and high-impact digital media
  845  projects. For the purposes of determining priority between a
  846  high-impact television series and a high-impact digital media
  847  project, the first position must go to the first application
  848  received. Thereafter, priority shall be determined by
  849  alternating between a high-impact television series and a high
  850  impact digital media project on a first-come, first-served
  851  basis. However, if the Office of Film and Entertainment receives
  852  an application for a high-impact television series or high
  853  impact digital media project that would be certified but for the
  854  alternating priority, the office may certify the project as
  855  being in the priority position if an application that would
  856  normally be the priority position is not received within 5
  857  business days.
  858         d. A qualified production for which at least 67 percent of
  859  its principal photography days occur within a region designated
  860  as an underutilized region at the time that the production is
  861  certified is eligible for an additional 5 percent tax credit.
  862         c.e. A qualified production is eligible for an additional
  863  15 percent tax credit on qualified expenditures that are wages,
  864  salaries, or other compensation paid to the following
  865  individuals employed by the qualified production: that employs
  866  students enrolled full-time in a film and entertainment-related
  867  or digital media-related course of study at an institution of
  868  higher education in this state, individuals participating in the
  869  Road-to-Independence Program under s. 409.1451, individuals with
  870  developmental disabilities as defined under s. 393.063 residing
  871  in this state, veterans residing in this state, and individuals
  872  is eligible for an additional 15 percent tax credit on qualified
  873  expenditures that are wages, salaries, or other compensation
  874  paid to such students. The additional 15 percent tax credit is
  875  also applicable to persons hired within 12 months after
  876  graduating from a film and entertainment-related or digital
  877  media-related course of study at an institution of higher
  878  education in this state. The additional 15 percent tax credit
  879  applies to qualified expenditures that are wages, salaries, or
  880  other compensation paid to such recent graduates for 1 year
  881  after the date of hiring.
  882         f. A qualified production for which 50 percent or more of
  883  its principal photography occurs at a qualified production
  884  facility, or a qualified digital media project or the digital
  885  animation component of a qualified production for which 50
  886  percent or more of the project’s or component’s qualified
  887  expenditures are related to a qualified digital media production
  888  facility, is eligible for an additional 5 percent tax credit on
  889  actual qualified expenditures for production activity at that
  890  facility.
  891         d. A qualified production that completes a capital
  892  investment of at least $2 million before the completion of the
  893  qualified production is eligible for an additional 5 percent tax
  894  credit. The capital investment must be permanent and must remain
  895  in this state after the production ends in this state.
  896         e.g. A qualified production is not eligible for tax credits
  897  provided under this paragraph totaling more than 25 percent 30
  898  percent of its actual qualified expenses.
  899         2. Commercial and music video queue.—Three percent of tax
  900  credits authorized pursuant to subsection (7) (6) in any state
  901  fiscal year must be dedicated to the commercial and music video
  902  queue. A qualified production company that produces national or
  903  regional commercials or music videos may be eligible for a tax
  904  credit award if it demonstrates a minimum of $100,000 in
  905  qualified expenditures per national or regional commercial or
  906  music video and exceeds a combined threshold of $500,000 after
  907  combining actual qualified expenditures from qualified
  908  commercials and music videos during a single state fiscal year.
  909  After a qualified production company that produces commercials,
  910  music videos, or both reaches the threshold of $500,000, it is
  911  eligible to apply for certification for a tax credit award. The
  912  maximum credit award shall be equal to 20 percent of its actual
  913  qualified expenditures up to a maximum of $500,000. If there is
  914  a surplus at the end of a fiscal year after the department
  915  Office of Film and Entertainment certifies and determines the
  916  tax credits for all qualified commercial and video projects,
  917  such surplus tax credits shall be carried forward to the
  918  following fiscal year and are available to any eligible
  919  qualified productions under the general production queue.
  920         3. Independent and emerging media production queue.—Three
  921  percent of tax credits authorized pursuant to subsection (7) (6)
  922  in any state fiscal year must be dedicated to the independent
  923  and emerging media production queue. This queue is intended to
  924  encourage independent film and emerging media production in this
  925  state. Any qualified production, excluding commercials,
  926  infomercials, or music videos, which demonstrates at least
  927  $100,000, but not more than $625,000, in total qualified
  928  expenditures is eligible for tax credits equal to 20 percent of
  929  its actual qualified expenditures. If a surplus exists at the
  930  end of a fiscal year after the department Office of Film and
  931  Entertainment certifies and determines the tax credits for all
  932  qualified independent and emerging media production projects,
  933  such surplus tax credits shall be carried forward to the
  934  following fiscal year and are available to any eligible
  935  qualified productions under the general production queue.
  936         4. Family-friendly productions.—A certified theatrical or
  937  direct-to-video motion picture production or video game
  938  determined by the Commissioner of Film and Entertainment, with
  939  the advice of the Florida Film and Entertainment Advisory
  940  Council, to be family-friendly, based on review of the script
  941  and review of the final release version, is eligible for an
  942  additional tax credit equal to 5 percent of its actual qualified
  943  expenditures. Family-friendly productions are those that have
  944  cross-generational appeal; would be considered suitable for
  945  viewing by children age 5 or older; are appropriate in theme,
  946  content, and language for a broad family audience; embody a
  947  responsible resolution of issues; and do not exhibit or imply
  948  any act of smoking, sex, nudity, or vulgar or profane language.
  949         (c) Withdrawal of tax credit eligibility.—A qualified or
  950  certified production must continue on a reasonable schedule,
  951  which includes beginning principal photography or the production
  952  project in this state no more than 45 calendar days before or
  953  after the principal photography or project start date provided
  954  in the production’s program application. The department shall
  955  withdraw the eligibility of a qualified or certified production
  956  that does not continue on a reasonable schedule.
  957         (c)(d)Election and distribution of tax credits.—
  958         1. A certified production company receiving a tax credit
  959  award under this section shall, at the time the credit is
  960  awarded by the department after production is completed and all
  961  requirements to receive a credit award have been met, make an
  962  irrevocable election to apply the credit against taxes due under
  963  chapter 220, against state taxes collected or accrued under
  964  chapter 212, or against a stated combination of the two taxes.
  965  The election is binding upon any distributee, successor,
  966  transferee, or purchaser. The department shall notify the
  967  Department of Revenue of any election made pursuant to this
  968  paragraph.
  969         2. A qualified production company is eligible for tax
  970  credits against its sales and use tax liabilities and corporate
  971  income tax liabilities as provided in this section. However, tax
  972  credits awarded under this section may not be claimed against
  973  sales and use tax liabilities or corporate income tax
  974  liabilities for any tax period beginning before July 1, 2011,
  975  regardless of when the credits are applied for or awarded.
  976         (d)(e)Tax credit carryforward.—If the certified production
  977  company cannot use the entire tax credit in the taxable year or
  978  reporting period in which the credit is awarded, any excess
  979  amount may be carried forward to a succeeding taxable year or
  980  reporting period. A tax credit applied against taxes imposed
  981  under chapter 212 or may be carried forward for a maximum of 5
  982  years after the date the credit is awarded. A tax credit applied
  983  against taxes imposed under chapter 220 may be carried forward
  984  for a maximum of 5 years after the date the credit is awarded,
  985  after which the credit expires and may not be used.
  986         (e)(f)Consolidated returns.—A certified production company
  987  that files a Florida consolidated return as a member of an
  988  affiliated group under s. 220.131(1) may be allowed the credit
  989  on a consolidated return basis up to the amount of the tax
  990  imposed upon the consolidated group under chapter 220.
  991         (f)(g)Partnership and noncorporate distributions.—A
  992  qualified production company that is not a corporation as
  993  defined in s. 220.03 may elect to distribute tax credits awarded
  994  under this section to its partners or members in proportion to
  995  their respective distributive income or loss in the taxable year
  996  in which the tax credits were awarded.
  997         (g)(h)Mergers or acquisitions.—Tax credits available under
  998  this section to a certified production company may succeed to a
  999  surviving or acquiring entity subject to the same conditions and
 1000  limitations as described in this section; however, they may not
 1001  be transferred again by the surviving or acquiring entity.
 1002         (5) TRANSFER OF TAX CREDITS.—
 1003         (a) Authorization.—Upon application to the Office of Film
 1004  and Entertainment and approval by the department, a certified
 1005  production company, or a partner or member that has received a
 1006  distribution under paragraph (4)(f) (4)(g), may elect to
 1007  transfer, in whole or in part, any unused credit amount granted
 1008  under this section. An election to transfer any unused tax
 1009  credit amount under chapter 212 or chapter 220 must be made no
 1010  later than 5 years after the date the credit is awarded, after
 1011  which period the credit expires and may not be used. The
 1012  department shall notify the Department of Revenue of the
 1013  election and transfer.
 1014         (b) Number of transfers permitted.—A certified production
 1015  company that elects to apply a credit amount against taxes
 1016  remitted under chapter 212 is permitted a one-time transfer of
 1017  unused credits to one transferee. A certified production company
 1018  that elects to apply a credit amount against taxes due under
 1019  chapter 220 is permitted a one-time transfer of unused credits
 1020  to no more than four transferees, and such transfers must occur
 1021  in the same taxable year.
 1022         (c) Transferee rights and limitations.—The transferee is
 1023  subject to the same rights and limitations as the certified
 1024  production company awarded the tax credit, except that the
 1025  initial transferee shall be permitted a one-time transfer of
 1026  unused credits to no more than two subsequent transferees, and
 1027  such transfers must occur in the same taxable year as the
 1028  credits were received by the initial transferee, after which the
 1029  subsequent transferees may not sell or otherwise transfer the
 1030  tax credit.
 1031         (6) RELINQUISHMENT OF TAX CREDITS.—
 1032         (a) Beginning July 1, 2011, a certified production company,
 1033  or any person who has acquired a tax credit from a certified
 1034  production company pursuant to subsections (4) and (5), may
 1035  elect to relinquish the tax credit to the Department of Revenue
 1036  in exchange for 90 percent of the amount of the relinquished tax
 1037  credit.
 1038         (b) The Department of Revenue may approve payments to
 1039  persons relinquishing tax credits pursuant to this subsection.
 1040         (c) Subject to legislative appropriation, the Department of
 1041  Revenue shall request the Chief Financial Officer to issue
 1042  warrants to persons relinquishing tax credits. Payments under
 1043  this subsection shall be made from the funds from which the
 1044  proceeds from the taxes against which the tax credits could have
 1045  been applied pursuant to the irrevocable election made by the
 1046  certified production company under subsection (4) are deposited.
 1047         (7) ANNUAL ALLOCATION OF TAX CREDITS.—
 1048         (a) The aggregate amount of the tax credits that may be
 1049  certified pursuant to paragraph (3)(d) may not exceed:
 1050         1. For fiscal year 2010-2011, $53.5 million.
 1051         2. For fiscal year 2011-2012, $74.5 million.
 1052         3. For fiscal years 2012-2013, 2013-2014, 2014-2015, and
 1053  2015-2016, $42 million per fiscal year.
 1054         4. Beginning July 1, 2014, for fiscal years 2014-2015 and
 1055  2015-2016, an additional $50 million per fiscal year.
 1056         5. Beginning July 1, 2016, for fiscal years 2016-2017,
 1057  2017-2018, 2018-2019, and 2019-2020, $50 million per fiscal
 1058  year.
 1059         (b) Any portion of the maximum amount of tax credits
 1060  established per fiscal year in paragraph (a) that is not
 1061  certified as of the end of a fiscal year shall be carried
 1062  forward and made available for certification during the
 1063  following 2 fiscal years in addition to the amounts available
 1064  for certification under paragraph (a) for those fiscal years.
 1065         (c) Upon approval of the final tax credit award amount
 1066  pursuant to subparagraph (3)(g)2. (3)(f)2., an amount equal to
 1067  the difference between the maximum tax credit award amount
 1068  previously certified under paragraph (3)(d) and the approved
 1069  final tax credit award amount shall immediately be available for
 1070  recertification during the current and following fiscal years in
 1071  addition to the amounts available for certification under
 1072  paragraph (a) for those fiscal years.
 1073         (d) Amounts available on and after July 1, 2014, for
 1074  certification may not be certified before the fiscal year in
 1075  which the amounts are listed in paragraph (a), except as
 1076  provided in subparagraph (3)(d)2. If, during a fiscal year, the
 1077  total amount of credits applied for, pursuant to paragraph
 1078  (3)(a), exceeds the amount of credits available for
 1079  certification in that fiscal year, such excess shall be treated
 1080  as having been applied for on the first day of the next fiscal
 1081  year in which credits remain available for certification.
 1082         (8) RULES, POLICIES, AND PROCEDURES.—
 1083         (a) The department may adopt rules pursuant to ss.
 1084  120.536(1) and 120.54 and develop policies and procedures to
 1085  implement and administer this section, including, but not
 1086  limited to, rules specifying requirements for the application
 1087  and approval process, records required for substantiation for
 1088  tax credits, procedures for making the election in paragraph
 1089  (4)(c) (4)(d), the manner and form of documentation required to
 1090  claim tax credits awarded or transferred under this section, and
 1091  marketing requirements for tax credit recipients.
 1092         (b) The Department of Revenue may adopt rules pursuant to
 1093  ss. 120.536(1) and 120.54 to administer this section, including
 1094  rules governing the examination and audit procedures required to
 1095  administer this section and the manner and form of documentation
 1096  required to claim tax credits awarded, transferred, or
 1097  relinquished under this section.
 1098         (9) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
 1099  CREDITS; FRAUDULENT CLAIMS.—
 1100         (a) Audit authority.—The Department of Revenue may conduct
 1101  examinations and audits as provided in s. 213.34 to verify that
 1102  tax credits under this section are received, transferred, and
 1103  applied according to the requirements of this section. If the
 1104  Department of Revenue determines that tax credits are not
 1105  received, transferred, or applied as required by this section,
 1106  it may, in addition to the remedies provided in this subsection,
 1107  pursue recovery of such funds pursuant to the laws and rules
 1108  governing the assessment of taxes.
 1109         (b) Revocation of tax credits.—The department may revoke or
 1110  modify any written decision qualifying, certifying, or otherwise
 1111  granting eligibility for tax credits under this section if it is
 1112  discovered that the tax credit applicant submitted any false
 1113  statement, representation, or certification in any application,
 1114  record, report, plan, or other document filed in an attempt to
 1115  receive tax credits under this section. The department shall
 1116  immediately notify the Department of Revenue of any revoked or
 1117  modified orders affecting previously granted tax credits.
 1118  Additionally, the applicant must notify the Department of
 1119  Revenue of any change in its tax credit claimed.
 1120         (c) Forfeiture of tax credits.—A determination by the
 1121  Department of Revenue, as a result of an audit pursuant to
 1122  paragraph (a) or from information received from the department
 1123  or the Division Office of Film and Entertainment of Enterprise
 1124  Florida, Inc., that an applicant received tax credits pursuant
 1125  to this section to which the applicant was not entitled is
 1126  grounds for forfeiture of previously claimed and received tax
 1127  credits. The applicant is responsible for returning forfeited
 1128  tax credits to the Department of Revenue, and such funds shall
 1129  be paid into the General Revenue Fund of the state. Tax credits
 1130  purchased in good faith are not subject to forfeiture unless the
 1131  transferee submitted fraudulent information in the purchase or
 1132  failed to meet the requirements in subsection (5).
 1133         (d) Fraudulent claims.—Any applicant that submits
 1134  fraudulent information under this section is liable for
 1135  reimbursement of the reasonable costs and fees associated with
 1136  the review, processing, investigation, and prosecution of the
 1137  fraudulent claim. An applicant that obtains a credit payment
 1138  under this section through a claim that is fraudulent is liable
 1139  for reimbursement of the credit amount plus a penalty in an
 1140  amount double the credit amount. The penalty is in addition to
 1141  any criminal penalty to which the applicant is liable for the
 1142  same acts. The applicant is also liable for costs and fees
 1143  incurred by the state in investigating and prosecuting the
 1144  fraudulent claim.
 1145         (10) ANNUAL REPORT.—Each November 1, the department Office
 1146  of Film and Entertainment shall submit an annual report for the
 1147  previous fiscal year to the Governor, the President of the
 1148  Senate, and the Speaker of the House of Representatives which
 1149  outlines the incentive program’s return on investment and
 1150  economic benefits to the state. The report must also include an
 1151  estimate of the full-time equivalent positions created by each
 1152  production that received tax credits under this section and
 1153  information relating to the distribution of productions
 1154  receiving credits by geographic region and type of production.
 1155  The report must also include the expenditures report required
 1156  under s. 288.9241 s. 288.1253(3) and the information describing
 1157  the relationship between tax exemptions and incentives to
 1158  industry growth required under s. 288.1258(5). The department
 1159  may work with the Division of Film and Entertainment of
 1160  Enterprise Florida, Inc., to develop the annual report.
 1161         (11) REPEAL.—This section is repealed July 1, 2020 July 1,
 1162  2016, except that:
 1163         (a) Tax credits certified under paragraph (3)(d) before
 1164  July 1, 2020 July 1, 2016, may be awarded under paragraph (3)(g)
 1165  (3)(f) on or after July 1, 2020 July 1, 2016, if the other
 1166  requirements of this section are met.
 1167         (b) Tax credits carried forward under paragraph (4)(d)
 1168  (4)(e) remain valid for the period specified.
 1169         (c) Subsections (5), (8), and (9) shall remain in effect
 1170  until July 1, 2025 July 1, 2021.
 1171         Section 6. Beginning July 1, 2014, applications on file
 1172  with the Department of Economic Opportunity to receive a tax
 1173  credit through the entertainment industry financial incentive
 1174  program under s. 288.1254, Florida Statutes, which are not yet
 1175  certified are deemed denied.
 1176         Section 7. Section 288.1258, Florida Statutes, is amended
 1177  to read:
 1178         288.1258 Entertainment industry qualified production
 1179  companies; application procedure; categories; duties of the
 1180  Department of Revenue; records and reports.—
 1181         (1) PRODUCTION COMPANIES AUTHORIZED TO APPLY.—
 1182         (a) Any production company engaged in this state in the
 1183  production of motion pictures, made-for-TV motion pictures,
 1184  television series, commercial advertising, music videos, or
 1185  sound recordings may submit an application to the Department of
 1186  Revenue to be approved by the department Office of Film and
 1187  Entertainment as a qualified production company for the purpose
 1188  of receiving a sales and use tax certificate of exemption from
 1189  the Department of Revenue.
 1190         (b) As used in For the purposes of this section, the term
 1191  “qualified production company” means any production company that
 1192  has submitted a properly completed application to the Department
 1193  of Revenue and that is subsequently qualified by the department
 1194  Office of Film and Entertainment.
 1195         (2) APPLICATION PROCEDURE.—
 1196         (a) The Department of Revenue will review all submitted
 1197  applications for the required information. Within 10 working
 1198  days after the receipt of a properly completed application, the
 1199  Department of Revenue will forward the completed application to
 1200  the department Office of Film and Entertainment for approval.
 1201         (b)1. The department Office of Film and Entertainment shall
 1202  establish a process by which an entertainment industry
 1203  production company may be approved by the department office as a
 1204  qualified production company and may receive a certificate of
 1205  exemption from the Department of Revenue for the sales and use
 1206  tax exemptions under ss. 212.031, 212.06, and 212.08.
 1207         2. Upon determination by the department Office of Film and
 1208  Entertainment that a production company meets the established
 1209  approval criteria and qualifies for exemption, the department
 1210  Office of Film and Entertainment shall return the approved
 1211  application or application renewal or extension to the
 1212  Department of Revenue, which shall issue a certificate of
 1213  exemption.
 1214         3. The department Office of Film and Entertainment shall
 1215  deny an application or application for renewal or extension from
 1216  a production company if it determines that the production
 1217  company does not meet the established approval criteria.
 1218         (c) The department Office of Film and Entertainment shall
 1219  develop, with the cooperation of the Department of Revenue, the
 1220  Division of Film and Entertainment of Enterprise Florida, Inc.,
 1221  and local government entertainment industry promotion agencies,
 1222  a standardized application form for use in approving qualified
 1223  production companies.
 1224         1. The application form shall include, but not be limited
 1225  to, production-related information on employment, proposed
 1226  budgets, planned purchases of items exempted from sales and use
 1227  taxes under ss. 212.031, 212.06, and 212.08, a signed
 1228  affirmation from the applicant that any items purchased for
 1229  which the applicant is seeking a tax exemption are intended for
 1230  use exclusively as an integral part of entertainment industry
 1231  preproduction, production, or postproduction activities engaged
 1232  in primarily in this state, and a signed affirmation from the
 1233  department Office of Film and Entertainment that the information
 1234  on the application form has been verified and is correct. In
 1235  lieu of information on projected employment, proposed budgets,
 1236  or planned purchases of exempted items, a production company
 1237  seeking a 1-year certificate of exemption may submit summary
 1238  historical data on employment, production budgets, and purchases
 1239  of exempted items related to production activities in this
 1240  state. Any information gathered from production companies for
 1241  the purposes of this section shall be considered confidential
 1242  taxpayer information and shall be disclosed only as provided in
 1243  s. 213.053.
 1244         2. The application form may be distributed to applicants by
 1245  the department, the Division Office of Film and Entertainment of
 1246  Enterprise Florida, Inc., or local film commissions.
 1247         (d) All applications, renewals, and extensions for
 1248  designation as a qualified production company shall be processed
 1249  by the department Office of Film and Entertainment.
 1250         (e) If In the event that the Department of Revenue
 1251  determines that a production company no longer qualifies for a
 1252  certificate of exemption, or has used a certificate of exemption
 1253  for purposes other than those authorized by this section and
 1254  chapter 212, the Department of Revenue shall revoke the
 1255  certificate of exemption of that production company, and any
 1256  sales or use taxes exempted on items purchased or leased by the
 1257  production company during the time such company did not qualify
 1258  for a certificate of exemption or improperly used a certificate
 1259  of exemption shall become immediately due to the Department of
 1260  Revenue, along with interest and penalty as provided by s.
 1261  212.12. In addition to the other penalties imposed by law, any
 1262  person who knowingly and willfully falsifies an application, or
 1263  uses a certificate of exemption for purposes other than those
 1264  authorized by this section and chapter 212, commits a felony of
 1265  the third degree, punishable as provided in ss. 775.082,
 1266  775.083, and 775.084.
 1267         (3) CATEGORIES.—
 1268         (a)1. A production company may be qualified for designation
 1269  as a qualified production company for a period of 1 year if the
 1270  company has operated a business in Florida at a permanent
 1271  address for a period of 12 consecutive months. Such a qualified
 1272  production company shall receive a single 1-year certificate of
 1273  exemption from the Department of Revenue for the sales and use
 1274  tax exemptions under ss. 212.031, 212.06, and 212.08, which
 1275  certificate shall expire 1 year after issuance or upon the
 1276  cessation of business operations in the state, at which time the
 1277  certificate shall be surrendered to the Department of Revenue.
 1278         2. The department Office of Film and Entertainment shall
 1279  develop a method by which a qualified production company may
 1280  annually renew a 1-year certificate of exemption for a period of
 1281  up to 5 years without requiring the production company to
 1282  resubmit a new application during that 5-year period.
 1283         3. Any qualified production company may submit a new
 1284  application for a 1-year certificate of exemption upon the
 1285  expiration of that company’s certificate of exemption.
 1286         (b)1. A production company may be qualified for designation
 1287  as a qualified production company for a period of 90 days. Such
 1288  production company shall receive a single 90-day certificate of
 1289  exemption from the Department of Revenue for the sales and use
 1290  tax exemptions under ss. 212.031, 212.06, and 212.08, which
 1291  certificate shall expire 90 days after issuance, with extensions
 1292  contingent upon approval of the department Office of Film and
 1293  Entertainment. The certificate shall be surrendered to the
 1294  Department of Revenue upon its expiration.
 1295         2. Any production company may submit a new application for
 1296  a 90-day certificate of exemption upon the expiration of that
 1297  company’s certificate of exemption.
 1298         (4) DUTIES OF THE DEPARTMENT OF REVENUE.—
 1299         (a) The Department of Revenue shall review the initial
 1300  application and notify the applicant of any omissions and
 1301  request additional information if needed. An application shall
 1302  be complete upon receipt of all requested information. The
 1303  Department of Revenue shall forward all complete applications to
 1304  the department Office of Film and Entertainment within 10
 1305  working days.
 1306         (b) The Department of Revenue shall issue a numbered
 1307  certificate of exemption to a qualified production company
 1308  within 5 working days of the receipt of an approved application,
 1309  application renewal, or application extension from the
 1310  department Office of Film and Entertainment.
 1311         (c) The Department of Revenue may adopt promulgate such
 1312  rules and shall prescribe and publish such forms as may be
 1313  necessary to effectuate the purposes of this section or any of
 1314  the sales tax exemptions which are reasonably related to the
 1315  provisions of this section.
 1316         (d) The Department of Revenue may is authorized to
 1317  establish audit procedures in accordance with the provisions of
 1318  ss. 212.12, 212.13, and 213.34 which relate to the sales tax
 1319  exemption provisions of this section.
 1320         (5) RELATIONSHIP OF TAX EXEMPTIONS AND INCENTIVES TO
 1321  INDUSTRY GROWTH; REPORT TO THE LEGISLATURE.—The department
 1322  Office of Film and Entertainment shall keep annual records from
 1323  the information provided on taxpayer applications for tax
 1324  exemption certificates beginning January 1, 2001. These records
 1325  also must reflect a ratio of the annual amount of sales and use
 1326  tax exemptions under this section, plus the incentives awarded
 1327  pursuant to s. 288.1254 to the estimated amount of funds
 1328  expended by certified productions. In addition, the department
 1329  office shall maintain data showing annual growth in Florida
 1330  based entertainment industry companies and entertainment
 1331  industry employment and wages. The employment information must
 1332  include an estimate of the full-time equivalent positions
 1333  created by each production that received tax credits pursuant to
 1334  s. 288.1254. The department Office of Film and Entertainment
 1335  shall include this information in the annual report for the
 1336  entertainment industry financial incentive program required
 1337  under s. 288.1254(10).
 1338         Section 8. Subsection (1) of section 288.92, Florida
 1339  Statutes, is amended to read:
 1340         288.92 Divisions of Enterprise Florida, Inc.—
 1341         (1) Enterprise Florida, Inc., may create and dissolve
 1342  divisions as necessary to carry out its mission. Each division
 1343  shall have distinct responsibilities and complementary missions.
 1344  At a minimum, Enterprise Florida, Inc., shall have divisions
 1345  related to the following areas:
 1346         (a) International Trade and Business Development;
 1347         (b) Business Retention and Recruitment;
 1348         (c) Tourism Marketing;
 1349         (d) Minority Business Development; and
 1350         (e) Sports Industry Development; and
 1351         (f) Film and Entertainment.
 1352         Section 9. Paragraph (q) of subsection (5) of section
 1353  212.08, Florida Statutes, is amended to read:
 1354         212.08 Sales, rental, use, consumption, distribution, and
 1355  storage tax; specified exemptions.—The sale at retail, the
 1356  rental, the use, the consumption, the distribution, and the
 1357  storage to be used or consumed in this state of the following
 1358  are hereby specifically exempt from the tax imposed by this
 1359  chapter.
 1360         (5) EXEMPTIONS; ACCOUNT OF USE.—
 1361         (q) Entertainment industry tax credit; authorization;
 1362  eligibility for credits.—The credits against the state sales tax
 1363  authorized pursuant to s. 288.1254 shall be deducted from any
 1364  sales and use tax remitted by the dealer to the department by
 1365  electronic funds transfer and may only be deducted on a sales
 1366  and use tax return initiated through electronic data
 1367  interchange. The dealer shall separately state the credit on the
 1368  electronic return. The net amount of tax due and payable must be
 1369  remitted by electronic funds transfer. If the credit for the
 1370  qualified expenditures is larger than the amount owed on the
 1371  sales and use tax return that is eligible for the credit, the
 1372  unused amount of the credit may be carried forward to a
 1373  succeeding reporting period as provided in s. 288.1254(4)(d) s.
 1374  288.1254(4)(e). A dealer may only obtain a credit using the
 1375  method described in this subparagraph. A dealer is not
 1376  authorized to obtain a credit by applying for a refund.
 1377         Section 10. Subsection (3) of section 220.1899, Florida
 1378  Statutes, is amended to read:
 1379         220.1899 Entertainment industry tax credit.—
 1380         (3) To the extent that the amount of a tax credit exceeds
 1381  the amount due on a return, the balance of the credit may be
 1382  carried forward to a succeeding taxable year pursuant to s.
 1383  288.1254(4)(d) s. 288.1254(4)(e).
 1384         Section 11. Subsection (5) of section 477.0135, Florida
 1385  Statutes, is amended to read:
 1386         477.0135 Exemptions.—
 1387         (5) A license is not required of any individual providing
 1388  makeup, special effects, or cosmetology services to an actor,
 1389  stunt person, musician, extra, or other talent during a
 1390  production recognized by the Department of Economic Opportunity
 1391  the Office of Film and Entertainment as a qualified production
 1392  as defined in s. 288.1254(1). Such services are not required to
 1393  be performed in a licensed salon. Individuals exempt under this
 1394  subsection may not provide such services to the general public.
 1395         Section 12. This act shall take effect July 1, 2014.