Florida Senate - 2015 PROPOSED COMMITTEE SUBSTITUTE
Bill No. SB 1046
Ì530364"Î530364
576-03379D-15
Proposed Committee Substitute by the Committee on Appropriations
(Appropriations Subcommittee on Transportation, Tourism, and
Economic Development)
1 A bill to be entitled
2 An act relating to the entertainment industry;
3 amending s. 288.125, F.S.; revising the applicability
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 within Enterprise Florida,
9 Inc.; requiring the division to serve as a liaison
10 between the entertainment industry and other agencies,
11 commissions, and organizations; requiring the Governor
12 to appoint the film and entertainment commissioner;
13 revising the requirements of the division’s strategic
14 plan; transferring, renumbering, and amending s.
15 288.1252, F.S.; revising the powers and duties of the
16 Florida Film and Entertainment Advisory Council;
17 revising council membership; conforming provisions to
18 changes made by the act; transferring, renumbering,
19 and amending s. 288.1253, F.S.; conforming provisions
20 to changes made by the act; prohibiting the division
21 and its employees and representatives from accepting
22 specified accommodations, goods, or services from
23 specified parties; providing that any person who
24 accepts any such good or services is subject to
25 specified penalties; amending s. 288.1254, F.S.;
26 redefining and revising terms; requiring the
27 department and the division, rather than the Office of
28 Film and Entertainment, to be responsible for
29 applications for the entertainment industry program;
30 revising provisions relating to the application
31 process, tax credit eligibility, transfer of tax
32 credits, election and distribution of tax credits,
33 allocation of tax credits, forfeiture of tax credits,
34 and annual report; extending the repeal date;
35 conforming provisions to changes made by the act;
36 specifying a date on which the applications on file
37 with the department and not yet certified are deemed
38 denied; creating s. 288.1256, F.S.; creating the
39 entertainment action fund within the department;
40 defining terms; authorizing a production company to
41 apply for funds from the entertainment action fund in
42 certain circumstances; requiring the department and
43 the division to jointly review and evaluate
44 applications to determine the eligibility of each
45 project; requiring the department to select projects
46 that maximize the return to the state; requiring
47 certain criteria to be considered by the department
48 and the division; requiring a production company to
49 have financing for a project before it applies for
50 action funds; requiring the department to prescribe a
51 form for an application with specified information;
52 requiring that the department make a recommendation to
53 the Governor to approve or deny an award within a
54 specified timeframe after the completion of the review
55 and evaluation; providing that an award of funds may
56 not constitute more than a specified percentage of
57 qualified expenditures in this state and prohibiting
58 the use of such funds to pay wages to nonresidents;
59 requiring a production to start within a specified
60 period after it is approved by the Governor; requiring
61 that the recommendation include performance conditions
62 that the project must meet to obtain funds; requiring
63 the department and the production company to enter
64 into a specified agreement after approval by the
65 Governor; requiring that the agreement be finalized
66 and signed by an authorized officer of the production
67 company within a specified period after approval by
68 the Governor; prohibiting an approved production
69 company from simultaneously receiving specified
70 benefits for the same production; requiring that the
71 department validate contractor performance and report
72 such validation in the annual report; prohibiting the
73 department from approving awards in excess of the
74 amount appropriated for a fiscal year; requiring the
75 department to maintain a schedule of funds; providing
76 that a production company that submits fraudulent
77 information is liable for reimbursement of specified
78 costs; providing a penalty; prohibiting the department
79 from waiving any provision or providing an extension
80 of time to meet specified requirements; providing an
81 expiration date; amending s. 288.1258, F.S.;
82 conforming provisions to changes made by the act;
83 prohibiting an approved production company from
84 simultaneously receiving benefits under specified
85 provisions for the same production; requiring the
86 department to develop a standardized application form
87 in cooperation with the division and other agencies;
88 requiring the qualified production company to submit
89 aggregate data on specified topics; authorizing a
90 qualified production company to renew its certificate
91 of exemption for a specified period; amending s.
92 288.92, F.S.; requiring Enterprise Florida, Inc., to
93 have a division relating to film and entertainment;
94 amending s. 477.0135, F.S.; conforming a provision to
95 changes made by the act; amending ss. 212.08, and
96 220.1899, F.S.; conforming cross-references; providing
97 an effective date.
98
99 Be It Enacted by the Legislature of the State of Florida:
100
101 Section 1. Section 288.125, Florida Statutes, is amended to
102 read:
103 288.125 Definition of term “entertainment industry.”—For
104 the purposes of ss. 288.1254, 288.1256, 288.1258, 288.913,
105 288.914, and 288.915 ss. 288.1251-288.1258, the term
106 “entertainment industry” means those persons or entities engaged
107 in the operation of motion picture or television studios or
108 recording studios; those persons or entities engaged in the
109 preproduction, production, or postproduction of motion pictures,
110 made-for-television movies, television programming, digital
111 media projects, commercial advertising, music videos, or sound
112 recordings; and those persons or entities providing products or
113 services directly related to the preproduction, production, or
114 postproduction of motion pictures, made-for-television movies,
115 television programming, digital media projects, commercial
116 advertising, music videos, or sound recordings, including, but
117 not limited to, the broadcast industry.
118 Section 2. Section 288.1251, Florida Statutes, is
119 transferred, renumbered as section 288.913, Florida Statutes,
120 and amended to read:
121 288.913 288.1251 Promotion and development of entertainment
122 industry; Division Office of Film and Entertainment; creation;
123 purpose; powers and duties.—
124 (1) CREATION.—
125 (a) The Division of Film and Entertainment is There is
126 hereby created within Enterprise Florida, Inc., the department
127 the Office of Film and Entertainment for the purpose of
128 developing, recruiting, marketing, promoting, and providing
129 services to the state’s entertainment industry. The division
130 shall serve as a liaison between the entertainment industry and
131 other state and local governmental agencies, local film
132 commissions, and labor organizations.
133 (2)(b) COMMISSIONER.—The Governor shall appoint the film
134 and entertainment commissioner, who shall serve at the pleasure
135 of the Governor department shall conduct a national search for a
136 qualified person to fill the position of Commissioner of Film
137 and Entertainment when the position is vacant. The executive
138 director of the department has the responsibility to hire the
139 film commissioner. The commissioner is subject to the
140 requirements of s. 288.901(1)(c). Qualifications for the film
141 commissioner include, but are not limited to, the following:
142 (a)1. A working knowledge of and experience with the
143 equipment, personnel, financial, and day-to-day production
144 operations of the industries to be served by the division Office
145 of Film and Entertainment;
146 (b)2. Marketing and promotion experience related to the
147 film and entertainment industries to be served;
148 (c)3. Experience working with a variety of individuals
149 representing large and small entertainment-related businesses,
150 industry associations, local community entertainment industry
151 liaisons, and labor organizations; and
152 (d)4. Experience working with a variety of state and local
153 governmental agencies.
154 (3)(2) POWERS AND DUTIES.—
155 (a) The Division Office of Film and Entertainment, in
156 performance of its duties, shall develop and:
157 1. In consultation with the Florida Film and Entertainment
158 Advisory Council, update a 5-year the strategic plan every 5
159 years to guide the activities of the division Office of Film and
160 Entertainment in the areas of entertainment industry
161 development, marketing, promotion, liaison services, field
162 office administration, and information. The plan shall:
163 a. be annual in construction and ongoing in nature.
164 1. At a minimum, the plan must address the following:
165 a.b. Include recommendations relating to The organizational
166 structure of the division, including any field offices outside
167 the state office.
168 b. The coordination of the division with local or regional
169 offices maintained by counties and regions of the state, local
170 film commissions, and labor organizations, and the coordination
171 of such entities with each other to facilitate a working
172 relationship.
173 c. Strategies to identify, solicit, and recruit
174 entertainment production opportunities for the state, including
175 implementation of programs for rural and urban areas designed to
176 develop and promote the state’s entertainment industry.
177 d.c. Include An annual budget projection for the division
178 office for each year of the plan.
179 d. Include an operational model for the office to use in
180 implementing programs for rural and urban areas designed to:
181 (I) develop and promote the state’s entertainment industry.
182 (II) Have the office serve as a liaison between the
183 entertainment industry and other state and local governmental
184 agencies, local film commissions, and labor organizations.
185 (III) Gather statistical information related to the state’s
186 entertainment industry.
187 e.(IV) Provision of Provide information and service to
188 businesses, communities, organizations, and individuals engaged
189 in entertainment industry activities.
190 (V) Administer field offices outside the state and
191 coordinate with regional offices maintained by counties and
192 regions of the state, as described in sub-sub-subparagraph (II),
193 as necessary.
194 f.e. Include Performance standards and measurable outcomes
195 for the programs to be implemented by the division office.
196 2. The plan shall be annually reviewed and approved by the
197 board of directors of Enterprise Florida, Inc.
198 f. Include an assessment of, and make recommendations on,
199 the feasibility of creating an alternative public-private
200 partnership for the purpose of contracting with such a
201 partnership for the administration of the state’s entertainment
202 industry promotion, development, marketing, and service
203 programs.
204 2. Develop, market, and facilitate a working relationship
205 between state agencies and local governments in cooperation with
206 local film commission offices for out-of-state and indigenous
207 entertainment industry production entities.
208 3. Implement a structured methodology prescribed for
209 coordinating activities of local offices with each other and the
210 commissioner’s office.
211 (b) The division shall also:
212 1.4. Represent the state’s indigenous entertainment
213 industry to key decisionmakers within the national and
214 international entertainment industry, and to state and local
215 officials.
216 2.5. Prepare an inventory and analysis of the state’s
217 entertainment industry, including, but not limited to,
218 information on crew, related businesses, support services, job
219 creation, talent, and economic impact and coordinate with local
220 offices to develop an information tool for common use.
221 3.6. Identify, solicit, and recruit entertainment
222 production opportunities for the state.
223 4.7. Assist rural communities and other small communities
224 in the state in developing the expertise and capacity necessary
225 for such communities to develop, market, promote, and provide
226 services to the state’s entertainment industry.
227 (c)(b) The division Office of Film and Entertainment, in
228 the performance of its duties, may:
229 1. Conduct or contract for specific promotion and marketing
230 functions, including, but not limited to, production of a
231 statewide directory, production and maintenance of an Internet
232 website, establishment and maintenance of a toll-free telephone
233 number, organization of trade show participation, and
234 appropriate cooperative marketing opportunities.
235 2. Conduct its affairs, carry on its operations, establish
236 offices, and exercise the powers granted by this act in any
237 state, territory, district, or possession of the United States.
238 3. Carry out any program of information, special events, or
239 publicity designed to attract entertainment industry to Florida.
240 4. Develop relationships and leverage resources with other
241 public and private organizations or groups in their efforts to
242 publicize to the entertainment industry in this state, other
243 states, and other countries the depth of Florida’s entertainment
244 industry talent, crew, production companies, production
245 equipment resources, related businesses, and support services,
246 including the establishment of and expenditure for a program of
247 cooperative advertising with these public and private
248 organizations and groups in accordance with the provisions of
249 chapter 120.
250 5. Provide and arrange for reasonable and necessary
251 promotional items and services for such persons as the division
252 office deems proper in connection with the performance of the
253 promotional and other duties of the division office.
254 6. Prepare an annual economic impact analysis on
255 entertainment industry-related activities in the state.
256 7. Request or accept any grant, payment, or gift of funds
257 or property made by this state, the United States, or any
258 department or agency thereof, or by any individual, firm,
259 corporation, municipality, county, or organization, for any or
260 all of the purposes of the Office of Film and Entertainment’s 5
261 year strategic plan or those permitted activities enumerated in
262 this paragraph. Such funds shall be deposited in a separate
263 account the Grants and Donations Trust Fund of the Executive
264 Office of the Governor for use by the division Office of Film
265 and Entertainment in carrying out its responsibilities and
266 duties as delineated in law. The division office may expend such
267 funds in accordance with the terms and conditions of any such
268 grant, payment, or gift in the pursuit of its administration or
269 in support of fulfilling its duties and responsibilities. The
270 division office shall separately account for the public funds
271 and the private funds deposited into the account trust fund.
272 Section 3. Section 288.1252, Florida Statutes, is
273 transferred, renumbered as section 288.914, Florida Statutes,
274 and amended to read:
275 288.914 288.1252 Florida Film and Entertainment Advisory
276 Council; creation; purpose; membership; powers and duties.—
277 (1) CREATION.—There is created within the department, for
278 administrative purposes only, the Florida Film and Entertainment
279 Advisory Council.
280 (1)(2) CREATION AND PURPOSE.—The Florida Film and
281 Entertainment Advisory Council is created purpose of the Council
282 is to serve as an advisory body to the Division of Film and
283 Entertainment within Enterprise Florida, Inc., and department
284 and to the Office of Film and Entertainment to provide these
285 offices with industry insight and expertise related to
286 developing, marketing, and promoting, and providing service to
287 the state’s entertainment industry.
288 (2)(3) MEMBERSHIP.—
289 (a) The council shall consist of 11 17 members, 5 7 to be
290 appointed by the Governor, 3 5 to be appointed by the President
291 of the Senate, and 3 5 to be appointed by the Speaker of the
292 House of Representatives.
293 (b) When making appointments to the council, the Governor,
294 the President of the Senate, and the Speaker of the House of
295 Representatives shall appoint persons who are residents of the
296 state and who are highly knowledgeable of, active in, and
297 recognized leaders in Florida’s motion picture, television,
298 video, sound recording, or other entertainment industries. These
299 persons shall include, but not be limited to, representatives of
300 local film commissions, representatives of entertainment
301 associations, a representative of the broadcast industry,
302 representatives of labor organizations in the entertainment
303 industry, and board chairs, presidents, chief executive
304 officers, chief operating officers, or persons of comparable
305 executive position or stature of leading or otherwise important
306 entertainment industry businesses and offices. Council members
307 shall be appointed in such a manner as to equitably represent
308 the broadest spectrum of the entertainment industry and
309 geographic areas of the state.
310 (c) Council members shall serve for 4-year terms. A member
311 of the council serving as of July 1, 2015, may serve the
312 remainder of his or her term, but upon the conclusion of the
313 term or upon vacancy, such appointment may not be filled except
314 to meet the requirements of this section.
315 (d) Subsequent appointments shall be made by the official
316 who appointed the council member whose expired term is to be
317 filled.
318 (e) A representative of Enterprise Florida, Inc., a
319 representative of Workforce Florida, Inc., and a representative
320 of VISIT Florida shall serve as ex officio, nonvoting members of
321 the council, and shall be in addition to the 11 17 appointed
322 members of the council.
323 (f) Absence from three consecutive meetings shall result in
324 automatic removal from the council.
325 (g) A vacancy on the council shall be filled for the
326 remainder of the unexpired term by the official who appointed
327 the vacating member.
328 (h) No more than one member of the council may be an
329 employee of any one company, organization, or association.
330 (i) Any member shall be eligible for reappointment but may
331 not serve more than two consecutive terms.
332 (3)(4) MEETINGS; ORGANIZATION.—
333 (a) The council shall meet at least no less frequently than
334 once each quarter of the calendar year, and but may meet more
335 often as determined necessary set by the council.
336 (b) The council shall annually elect from its appointed
337 membership one member to serve as chair of the council and one
338 member to serve as vice chair. The Division Office of Film and
339 Entertainment shall provide staff assistance to the council,
340 which must shall include, but need not be limited to, keeping
341 records of the proceedings of the council, and serving as
342 custodian of all books, documents, and papers filed with the
343 council.
344 (c) A majority of the members of the council constitutes
345 shall constitute a quorum.
346 (d) Members of the council shall serve without
347 compensation, but are shall be entitled to reimbursement for per
348 diem and travel expenses in accordance with s. 112.061 while in
349 performance of their duties.
350 (4)(5) POWERS AND DUTIES.—The Florida Film and
351 Entertainment Advisory Council shall have all the power powers
352 necessary or convenient to carry out and effectuate the purposes
353 and provisions of this act, including, but not limited to, the
354 power to:
355 (a) Adopt bylaws for the governance of its affairs and the
356 conduct of its business.
357 (b) Advise the Division of Film and Entertainment and
358 consult with the Office of Film and Entertainment on the
359 content, development, and implementation of the division’s 5
360 year strategic plan to guide the activities of the office.
361 (c) Review the Commissioner of Film and Entertainment’s
362 administration of the programs related to the strategic plan,
363 and Advise the Division of Film and Entertainment commissioner
364 on the division’s programs and any changes that might be made to
365 better meet the strategic plan.
366 (d) Consider and study the needs of the entertainment
367 industry for the purpose of advising the Division of Film and
368 Entertainment film commissioner and the department.
369 (e) Identify and make recommendations on state agency and
370 local government actions that may have an impact on the
371 entertainment industry or that may appear to industry
372 representatives as an official state or local actions action
373 affecting production in the state, and advise the Division of
374 Film and Entertainment of such actions.
375 (f) Consider all matters submitted to it by the Division of
376 Film and Entertainment film commissioner and the department.
377 (g) Advise and consult with the film commissioner and the
378 department, at their request or upon its own initiative,
379 regarding the promulgation, administration, and enforcement of
380 all laws and rules relating to the entertainment industry.
381 (g)(h) Suggest policies and practices for the conduct of
382 business by the Office of Film and Entertainment or by the
383 department that will improve interaction with internal
384 operations affecting the entertainment industry and will enhance
385 related state the economic development initiatives of the state
386 for the industry.
387 (i) Appear on its own behalf before boards, commissions,
388 departments, or other agencies of municipal, county, or state
389 government, or the Federal Government.
390 Section 4. Section 288.1253, Florida Statutes, is
391 transferred, renumbered as section 288.915, Florida Statutes,
392 and amended to read:
393 288.915 288.1253 Travel and entertainment expenses.—
394 (1) As used in this section, the term “travel expenses”
395 means the actual, necessary, and reasonable costs of
396 transportation, meals, lodging, and incidental expenses normally
397 incurred by an employee of the Division Office of Film and
398 Entertainment within Enterprise Florida, Inc., as which costs
399 are defined and prescribed by rules adopted by the department
400 rule, subject to approval by the Chief Financial Officer.
401 (2) Notwithstanding the provisions of s. 112.061, the
402 department shall adopt rules by which the Division of Film and
403 Entertainment it may make expenditures by reimbursement to: the
404 Governor, the Lieutenant Governor, security staff of the
405 Governor or Lieutenant Governor, the Commissioner of Film and
406 Entertainment, or staff of the Division Office of Film and
407 Entertainment for travel expenses or entertainment expenses
408 incurred by such individuals solely and exclusively in
409 connection with the performance of the statutory duties of the
410 division Office of Film and Entertainment. The rules are subject
411 to approval by the Chief Financial Officer before adoption. The
412 rules shall require the submission of paid receipts, or other
413 proof of expenditure prescribed by the Chief Financial Officer,
414 with any claim for reimbursement.
415 (3) The Division Office of Film and Entertainment shall
416 include in the annual report for the entertainment industry
417 financial incentive program required under s. 288.1254(10) a
418 report of the division’s office’s expenditures for the previous
419 fiscal year. The report must consist of a summary of all travel,
420 entertainment, and incidental expenses incurred within the
421 United States and all travel, entertainment, and incidental
422 expenses incurred outside the United States, as well as a
423 summary of all successful projects that developed from such
424 travel.
425 (4) The Division Office of Film and Entertainment and its
426 employees and representatives, when authorized, may accept and
427 use complimentary travel, accommodations, meeting space, meals,
428 equipment, transportation, and any other goods or services
429 necessary for or beneficial to the performance of the division’s
430 office’s duties and purposes, so long as such acceptance or use
431 is not in conflict with part III of chapter 112. The department
432 shall, by rule, develop internal controls to ensure that such
433 goods or services accepted or used pursuant to this subsection
434 are limited to those that will assist solely and exclusively in
435 the furtherance of the division’s office’s goals and are in
436 compliance with part III of chapter 112. Notwithstanding this
437 subsection, the division and its employees and representatives
438 may not accept any complimentary travel, accommodations, meeting
439 space, meals, equipment, transportation, or any other goods or
440 services from an entity or party, including an employee,
441 designee, or representative of such entity or party, which has
442 received, has applied to receive, or anticipates that it will
443 receive through an application, funds under s. 288.1256. If the
444 division or its employee or representative accepts such goods or
445 services, the division or its employee or representative is
446 subject to the penalties provided in s. 112.317.
447 (5) Any claim submitted under this section is not required
448 to be sworn to before a notary public or other officer
449 authorized to administer oaths, but any claim authorized or
450 required to be made under any provision of this section shall
451 contain a statement that the expenses were actually incurred as
452 necessary travel or entertainment expenses in the performance of
453 official duties of the Division Office of Film and Entertainment
454 and shall be verified by written declaration that it is true and
455 correct as to every material matter. Any person who willfully
456 makes and subscribes to any claim that which he or she does not
457 believe to be true and correct as to every material matter or
458 who willfully aids or assists in, procures, or counsels or
459 advises with respect to, the preparation or presentation of a
460 claim pursuant to this section which that is fraudulent or false
461 as to any material matter, whether such falsity or fraud is with
462 the knowledge or consent of the person authorized or required to
463 present the claim, commits a misdemeanor of the second degree,
464 punishable as provided in s. 775.082 or s. 775.083. Whoever
465 receives a reimbursement by means of a false claim is civilly
466 liable, in the amount of the overpayment, for the reimbursement
467 of the public fund from which the claim was paid.
468 Section 5. Section 288.1254, Florida Statutes, is amended
469 to read:
470 288.1254 Entertainment industry financial incentive
471 program.—
472 (1) DEFINITIONS.—As used in this section, the term:
473 (a) “Certified production” means a qualified production
474 that has tax credits allocated to it by the department based on
475 the production’s estimated qualified expenditures, up to the
476 production’s maximum certified amount of tax credits, by the
477 department. The term does not include a production if its first
478 day of principal photography or project start date in this state
479 occurs before the production is certified by the department,
480 unless the production spans more than 1 fiscal year, was a
481 certified production on its first day of principal photography
482 or project start date in this state, and submits an application
483 for continuing the same production for the subsequent fiscal
484 year.
485 (b) “Digital media project” means a production of
486 interactive entertainment that is produced for distribution in
487 commercial or educational markets. The term includes a video
488 game or production intended for Internet or wireless
489 distribution, an interactive website, digital animation, and
490 visual effects, including, but not limited to, three-dimensional
491 movie productions and movie conversions. The term does not
492 include a production that contains content that is obscene as
493 defined in s. 847.001.
494 (c) “Family-friendly production” means a production that
495 has cross-generational appeal; is considered suitable for
496 viewing by children age 5 or older; is appropriate in theme,
497 content, and language for a broad family audience; embodies a
498 responsible resolution of issues; and does not exhibit or imply
499 any act of smoking, sex, nudity, or vulgar or profane language
500 “High-impact digital media project” means a digital media
501 project that has qualified expenditures greater than $4.5
502 million.
503 (d) “High-impact television production series” means:
504 1. A production created to run multiple production seasons
505 which has and having an estimated order of at least seven
506 episodes per season and qualified expenditures of at least $1
507 million $625,000 per episode; or
508 2. A telenovela that has qualified expenditures of more
509 than $6 million; a minimum of 45 principal photography days
510 filmed in this state; a production cast, including background
511 actors, and a crew of which at least 90 percent are legal
512 residents of this state; and at least 90 percent of its
513 production occurring in this state.
514 (e) “Off-season certified production” means a feature film,
515 independent film, or television series or pilot that films 75
516 percent or more of its principal photography days from June 1
517 through November 30.
518 (f) “Principal photography” means the filming of major or
519 significant components of the qualified production which involve
520 lead actors.
521 (f)(g) “Production” means a theatrical, or direct-to-video,
522 or direct-to-Internet motion picture; a made-for-television
523 motion picture; visual effects or digital animation sequences
524 produced in conjunction with a motion picture; a commercial; a
525 music video; an industrial or educational film; an infomercial;
526 a documentary film; a television pilot program; a presentation
527 for a television pilot program; a television series, including,
528 but not limited to, a drama, a reality show, a comedy, a soap
529 opera, a telenovela, a game show, an awards show, or a
530 miniseries production; a direct-to-Internet television series;
531 or a digital media project by the entertainment industry. One
532 season of a television series is considered one production. The
533 term does not include a weather or market program; a sporting
534 event or a sporting event broadcast; a gala; a production that
535 solicits funds; a home shopping program; a political program; a
536 political documentary; political advertising; a gambling-related
537 project or production; a concert production; a local, regional,
538 or Internet-distributed-only news show or current-events show; a
539 sports news or sports recap show; a pornographic production; or
540 any production deemed obscene under chapter 847. A production
541 may be produced on or by film, tape, or otherwise by means of a
542 motion picture camera; electronic camera or device; tape device;
543 computer; any combination of the foregoing; or any other means,
544 method, or device.
545 (g)(h) “Production expenditures” means the costs of
546 tangible and intangible property used for, and services
547 performed primarily and customarily in, production, including
548 preproduction and postproduction, but excluding costs for
549 development, marketing, and distribution. The term includes, but
550 is not limited to:
551 1. Wages, salaries, or other compensation paid to legal
552 residents of this state, including amounts paid through payroll
553 service companies, for technical and production crews,
554 directors, producers, and performers.
555 2. Net expenditures for sound stages, backlots, production
556 editing, digital effects, sound recordings, sets, and set
557 construction.
558 3. Net expenditures for rental equipment, including, but
559 not limited to, cameras and grip or electrical equipment.
560 4. Up to $300,000 of the costs of newly purchased computer
561 software and hardware unique to the project, including servers,
562 data processing, and visualization technologies, which are
563 located in and used exclusively in this the state for the
564 production of digital media.
565 5. Expenditures for meals, travel, and accommodations. For
566 purposes of this paragraph, the term “net expenditures” means
567 the actual amount of money a qualified production spent for
568 equipment or other tangible personal property, after subtracting
569 any consideration received for reselling or transferring the
570 item after the qualified production ends, if applicable.
571 (h)(i) “Qualified expenditures” means production
572 expenditures incurred in this state by a qualified production
573 for:
574 1. Goods purchased or leased from, or services, including,
575 but not limited to, insurance costs and bonding, payroll
576 services, and legal fees, which are provided by, a vendor or
577 supplier in this state that is registered with the Department of
578 State or the Department of Revenue, has a physical location in
579 this state, and employs one or more legal residents of this
580 state. This does not include rebilled goods or services provided
581 by an in-state company from out-of-state vendors or suppliers.
582 When services provided by the vendor or supplier include
583 personal services or labor, only personal services or labor
584 provided by residents of this state, evidenced by the required
585 documentation of residency in this state, qualify.
586 2. Payments to legal residents of this state in the form of
587 salary, wages, or other compensation up to a maximum of $400,000
588 per resident unless otherwise specified in subsection (4). A
589 completed declaration of residency in this state must accompany
590 the documentation submitted to the department office for
591 reimbursement.
592
593 For a qualified production involving an event, such as an awards
594 show, the term does not include expenditures solely associated
595 with the event itself and not directly required by the
596 production. The term does not include expenditures incurred
597 before certification, with the exception of those incurred for a
598 commercial, a music video, or the pickup of additional episodes
599 of a high-impact television production series within a single
600 season. Under no circumstances may The qualified production may
601 not include in the calculation for qualified expenditures the
602 original purchase price for equipment or other tangible property
603 that is later sold or transferred by the qualified production
604 for consideration. In such cases, the qualified expenditure is
605 the net of the original purchase price minus the consideration
606 received upon sale or transfer.
607 (i)(j) “Qualified production” means a production in this
608 state meeting the requirements of this section. The term does
609 not include a production:
610 1. In which, for the first 2 years of the incentive
611 program, less than 50 percent, and thereafter, less than 60
612 percent, of the positions that make up its production cast and
613 below-the-line production crew, or, in the case of digital media
614 projects, less than 75 percent of such positions, are filled by
615 legal residents of this state, whose residency is demonstrated
616 by a valid Florida driver license or other state-issued
617 identification confirming residency, or students enrolled full
618 time in an entertainment-related a film-and-entertainment
619 related course of study at an institution of higher education in
620 this state; or
621 2. That contains obscene content as defined in s.
622 847.001(10).
623 (j)(k) “Qualified production company” means a corporation,
624 limited liability company, partnership, or other legal entity
625 engaged in one or more productions in this state.
626 (l) “Qualified digital media production facility” means a
627 building or series of buildings and their improvements in which
628 data processing, visualization, and sound synchronization
629 technologies are regularly applied for the production of
630 qualified digital media projects or the digital animation
631 components of qualified productions.
632 (m) “Qualified production facility” means a building or
633 complex of buildings and their improvements and associated
634 backlot facilities in which regular filming activity for film or
635 television has occurred for a period of no less than 1 year and
636 which contain at least one sound stage of at least 7,800 square
637 feet.
638 (n) “Regional population ratio” means the ratio of the
639 population of a region to the population of this state. The
640 regional population ratio applicable to a given fiscal year is
641 the regional population ratio calculated by the Office of Film
642 and Entertainment using the latest official estimates of
643 population certified under s. 186.901, available on the first
644 day of that fiscal year.
645 (o) “Regional tax credit ratio” means a ratio the numerator
646 of which is the sum of tax credits awarded to productions in a
647 region to date plus the tax credits certified, but not yet
648 awarded, to productions currently in that region and the
649 denominator of which is the sum of all tax credits awarded in
650 the state to date plus all tax credits certified, but not yet
651 awarded, to productions currently in the state. The regional tax
652 credit ratio applicable to a given year is the regional tax
653 credit ratio calculated by the Office of Film and Entertainment
654 using credit award and certification information available on
655 the first day of that fiscal year.
656 (p) “Underutilized region” for a given state fiscal year
657 means a region with a regional tax credit ratio applicable to
658 that fiscal year that is lower than its regional population
659 ratio applicable to that fiscal year. The following regions are
660 established for purposes of making this determination:
661 1. North Region, consisting of Alachua, Baker, Bay,
662 Bradford, Calhoun, Clay, Columbia, Dixie, Duval, Escambia,
663 Franklin, Gadsden, Gilchrist, Gulf, Hamilton, Holmes, Jackson,
664 Jefferson, Lafayette, Leon, Levy, Liberty, Madison, Nassau,
665 Okaloosa, Putnam, Santa Rosa, St. Johns, Suwannee, Taylor,
666 Union, Wakulla, Walton, and Washington Counties.
667 2. Central East Region, consisting of Brevard, Flagler,
668 Indian River, Lake, Okeechobee, Orange, Osceola, Seminole, St.
669 Lucie, and Volusia Counties.
670 3. Central West Region, consisting of Citrus, Hernando,
671 Hillsborough, Manatee, Marion, Polk, Pasco, Pinellas, Sarasota,
672 and Sumter Counties.
673 4. Southwest Region, consisting of Charlotte, Collier,
674 DeSoto, Glades, Hardee, Hendry, Highlands, and Lee Counties.
675 5. Southeast Region, consisting of Broward, Martin, Miami
676 Dade, Monroe, and Palm Beach Counties.
677 (k)(q) “Interactive website” means a website or group of
678 websites that includes interactive and downloadable content, and
679 creates 25 new Florida full-time equivalent positions operating
680 from a principal place of business located within Florida. An
681 interactive website or group of websites must provide
682 documentation that those jobs were created to the department
683 before Office of Film and Entertainment prior to the award of
684 tax credits. Each subsequent program application must provide
685 proof that 25 Florida full-time equivalent positions are
686 maintained.
687 (l) “Underutilized county” means a county in which less
688 than $500,000 in qualified expenditures were made in the last 2
689 fiscal years.
690 (2) CREATION AND PURPOSE OF PROGRAM.—The entertainment
691 industry financial incentive program is created within the
692 department Office of Film and Entertainment. The purpose of this
693 program is to encourage the use of this state as a site for
694 entertainment production, for filming, and for the digital
695 production of entertainment films, and to develop and sustain
696 the workforce and infrastructure for film, digital media, and
697 entertainment production.
698 (3) APPLICATION PROCEDURE; APPROVAL PROCESS.—
699 (a) Program application.—A qualified production company
700 producing a qualified production in this state may submit a
701 program application to the Division Office of Film and
702 Entertainment for the purpose of determining qualification for
703 an award of tax credits authorized by this section no earlier
704 than 180 days before the first day of principal photography or
705 project start date in this state. The applicant shall provide
706 the division Office of Film and Entertainment with information
707 required to determine whether the production is a qualified
708 production and to determine the qualified expenditures and other
709 information necessary for the division and the department office
710 to determine eligibility for the tax credit.
711 (b) Required documentation.—The department, in consultation
712 with the division, Office of Film and Entertainment shall
713 develop an application form for qualifying an applicant as a
714 qualified production. The form must include, but need not be
715 limited to, production-related information concerning employment
716 of residents in this state;, a detailed budget of planned
717 qualified expenditures and aggregate nonqualified expenditures,
718 including capital investment, in this state; proof of financing
719 for the production;, and the applicant’s signed affirmation that
720 the information on the form has been verified and is correct.
721 The division Office of Film and Entertainment and local film
722 commissions shall distribute the form.
723 (c) Application process.—The division Office of Film and
724 Entertainment shall establish a process by which an application
725 is accepted and reviewed and by which tax credit eligibility and
726 award amount are determined.
727 1. The division shall review, evaluate, and rank
728 applications for each queue, as provided in subsection (4),
729 using the following evaluation criteria, with priority given in
730 descending order, with the highest priority given to sub
731 subparagraph a.:
732 a. The number of state residents that will be employed in
733 full-time equivalent and part-time positions related to the
734 project, and the duration of such employment and the average
735 wages paid to such residents. Preference shall be given to a
736 project that expects to pay higher than the statewide average
737 wage.
738 b. The amount of qualified and nonqualified expenditures
739 that will be made in this state.
740 c. The duration of the project in this state, including
741 whether production will occur in an underutilized county.
742 d. The length of time for planned preproduction and
743 postproduction scheduled to occur in this state.
744 e. The amount of capital investment, especially fixed
745 capital investment, to be made directly by the production
746 company in this state related to the project and the amount of
747 any other capital investment to be made in this state related to
748 the project.
749 f. The local support and amount of any financial commitment
750 for the project.
751 2. The Division of Film and Entertainment shall designate
752 two application cycles per fiscal year for qualified production
753 companies to submit applications pursuant to this section. Each
754 application cycle must consist of an application submittal
755 deadline and a subsequent review period. The two application
756 deadlines shall be separated in time by at least 4 months. The
757 first application cycle must be “Application Cycle A,” and the
758 second application cycle must be “Application Cycle B.” Each
759 applicant must designate the cycle for which the applicant is
760 applying.
761 3. The Division of Film and Entertainment shall designate
762 the length of the review period for each application cycle which
763 must immediately follow its corresponding application deadline.
764 The review cycle may not exceed 30 days. During each review
765 period, the Division of Film and Entertainment shall:
766 a. Review each timely received application to ensure that
767 the application is complete and shall label each application
768 according to its queue as specified in subsection (4).
769 b. Recommend rankings for applications pursuant to the
770 criteria in subparagraph 1.
771 c. Submit each complete and timely received application
772 along with the recommended application rankings to the
773 department no later than 1 day after the end of the review
774 cycle. Applications that do not meet the requirements of this
775 section may not be ranked.
776 4. Applications that are not timely received or complete
777 may not be carried forward to a subsequent application cycle.
778 5. A certified high-impact television production may submit
779 an initial application for no more than two successive seasons,
780 notwithstanding the fact that the second season has not been
781 ordered. The qualified expenditure amounts for the second season
782 shall be based on the current season’s estimated qualified
783 expenditures. Upon the completion of production of each season,
784 a high-impact television production may submit an application
785 for only one additional season. To be certified for a tax
786 credit, the applicant must agree to notify the department within
787 10 days if the additional season is not ordered or is cancelled.
788 The Office of Film and Entertainment may request assistance
789 from a duly appointed local film commission in determining
790 compliance with this section. A certified high-impact television
791 series may submit an initial application for no more than two
792 successive seasons, notwithstanding the fact that the successive
793 seasons have not been ordered. The successive season’s qualified
794 expenditure amounts shall be based on the current season’s
795 estimated qualified expenditures. Upon the completion of
796 production of each season, a high-impact television series may
797 submit an application for no more than one additional season.
798 (d) Certification.—
799 1. The department Office of Film and Entertainment shall
800 review the applications and recommendations by the division
801 application within 15 business days after receipt from the
802 division. Upon its determination that The department shall
803 determine if each application contains all the information
804 required by this subsection and meets the criteria set out in
805 this section. Going from the highest-ranked and recommended
806 application to the lowest-ranked application, the department,
807 the Office of Film and Entertainment shall determine, for each
808 application, whether to certify qualify the applicant and
809 recommend to the department that the applicant be certified for
810 the maximum tax credit award amount. Within 5 business days
811 after receipt of the recommendation, the department shall reject
812 the recommendation or certify the maximum recommended tax credit
813 award, if any funds are available, to the applicant and to the
814 executive director of the Department of Revenue; or to reject
815 the request for the tax credit pursuant to paragraph (f).
816 2. The department may certify only up to 50 percent of the
817 credits available in a fiscal year for “Application Cycle A” of
818 the fiscal year. All remaining tax credits in the fiscal year
819 may be certified in “Application Cycle B.” The department may
820 not certify tax credits in an amount greater than the allocation
821 for a specified fiscal year, as determined under subsection (7).
822 (e) Employment.—Upon certification by the department, the
823 production must provide the department and the Division of Film
824 and Entertainment with a single point of contact and information
825 related to the production’s needs for cast, crew, contractors,
826 and vendors. The division shall publish this information online,
827 including the type of production, the projected start date of
828 the production, the locations in this state for such production,
829 and the e-mail or other contact information for the production’s
830 point of contact. The department, in consultation with the
831 division, may adopt procedures for a production to post such
832 information itself within 7 days after certification.
833 (f)(e) Grounds for denial.—The department Office of Film
834 and Entertainment shall deny an application if it determines
835 that the application is not complete, or the production or
836 application does not meet the requirements of this section, or
837 the application is not ranked by the division. Within 90 days
838 after submitting a program application, except with respect to
839 applications in the independent and emerging media queue, a
840 production must provide proof of project financing to the Office
841 of Film and Entertainment, otherwise the project is deemed
842 denied and withdrawn. A project that has been denied withdrawn
843 may submit a new application in a subsequent application cycle
844 upon providing the Office of Film and Entertainment proof of
845 financing.
846 (g)(f) Verification of actual qualified expenditures.—
847 1. The department, in consultation with the Division Office
848 of Film and Entertainment, shall develop a process to verify the
849 actual qualified expenditures of a certified production. The
850 process must require:
851 a. A certified production to submit, within 180 days in a
852 timely manner after production ends in this state and after
853 making all of its qualified expenditures in this state, data
854 substantiating each qualified expenditure, including
855 documentation of on the net expenditure on equipment and other
856 tangible personal property by the qualified production and all
857 production-related information on full- and part-time employment
858 and wages paid to residents of this state, to an independent
859 certified public accountant licensed in this state;
860 b. Such accountant to conduct a compliance audit, at the
861 certified production’s expense, to substantiate each qualified
862 expenditure and submit the results as a report, along with the
863 required substantiating data, to the department Office of Film
864 and Entertainment; and
865 c. The department Office of Film and Entertainment to
866 review the accountant’s submittal and verify report to the
867 department the final verified amount of actual qualified
868 expenditures made by the certified production.
869 2. The department shall also require a certified production
870 to submit data substantiating aggregate nonqualified
871 expenditures, including capital investment, in this state.
872 3.2. The department shall determine and approve the final
873 tax credit award amount to each certified applicant based on the
874 final verified amount of actual qualified expenditures and
875 evidence that the qualified production met the requirements of
876 this section. The department shall notify the executive director
877 of the Department of Revenue in writing that the certified
878 production has met the requirements of the incentive program and
879 of the final amount of the tax credit award. The final tax
880 credit award amount may not exceed the maximum tax credit award
881 amount certified under paragraph (d).
882 (h)(g) Promoting Florida.—The department Office of Film and
883 Entertainment shall ensure that, as a condition of receiving a
884 tax credit under this section, marketing materials promoting
885 this state as a tourist destination or film and entertainment
886 production destination are included, when appropriate, at no
887 cost to the state, in the qualified production or as otherwise
888 required by the department and the Division of Film and
889 Entertainment. The Division of Film and Entertainment shall
890 provide the Florida Tourism Industry Marketing Corporation with
891 the contact information for each qualified production in order
892 for the corporation to work with the qualified production to
893 develop the marketing materials promoting this state. The
894 marketing materials which must, at a minimum, include placement
895 of the “Visit Florida” logo and a “Filmed in Florida” or
896 “Produced in Florida” logo in the end credits. The placement of
897 the “Visit Florida” logo and a “Filmed in Florida” or “Produced
898 in Florida” logo on all packaging material and hard media is
899 also required, unless such placement is prohibited by licensing
900 or other contractual obligations. The sizes size and placements
901 placement of such logos logo shall be commensurate to other
902 logos used. If no logos are used, the statement “Filmed in
903 Florida using Florida’s Entertainment Industry Program Financial
904 Incentive,” or a similar statement approved by the Division
905 Office of Film and Entertainment, shall be used. The Division
906 Office of Film and Entertainment shall provide a logo and supply
907 it for the purposes specified in this paragraph. A 30-second
908 “Visit Florida” promotional video must also be included on all
909 optical disc formats of a film, unless such placement is
910 prohibited by licensing or other contractual obligations. The
911 30-second promotional video shall be approved and provided by
912 the Florida Tourism Industry Marketing Corporation in
913 consultation with the Division Commissioner of Film and
914 Entertainment. The marketing materials must also include a link
915 to the Florida Tourism Industry Marketing Corporation website or
916 another website designated by the department on the certified
917 applicant’s website or the production’s website for the entire
918 term of the production. If the certified applicant cannot
919 provide such link, it must provide a promotional opportunity of
920 equal or greater value as approved by the department and the
921 division.
922 (4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES;
923 ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS;
924 PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND
925 ACQUISITIONS.—
926 (a) Priority for tax credit award.—The priority of a
927 qualified production for tax credit awards must be determined on
928 a first-come, first-served basis within its appropriate queue.
929 Each qualified production must be placed into the appropriate
930 queue and is subject to the requirements of that queue.
931 (b) Tax credit eligibility.—Each qualified production must
932 be placed into the appropriate queue and is subject to the
933 requirements of that queue.
934 1. General production queue.—Ninety-four percent of tax
935 credits authorized pursuant to subsection (7) (6) in any state
936 fiscal year must be dedicated to the general production queue.
937 The general production queue consists of all qualified
938 productions other than those eligible for the commercial and
939 music video queue or the independent and emerging media
940 production queue. A qualified production that demonstrates a
941 minimum of $625,000 in qualified expenditures is eligible for
942 tax credits equal to 20 percent of its actual qualified
943 expenditures, up to a maximum of $8 million. A qualified
944 production that incurs qualified expenditures during multiple
945 state fiscal years may combine those expenditures to satisfy the
946 $625,000 minimum threshold.
947 a. An off-season certified production that is a feature
948 film, independent film, or television series or pilot is
949 eligible for an additional 5 percent tax credit on actual
950 qualified expenditures. An off-season certified production that
951 does not complete 75 percent of principal photography due to a
952 disruption caused by a hurricane or tropical storm may not be
953 disqualified from eligibility for the additional 5 percent
954 credit as a result of the disruption.
955 b. If more than 45 percent of the sum of total tax credits
956 initially certified and awarded after April 1, 2012, total tax
957 credits initially certified after April 1, 2012, but not yet
958 awarded, and total tax credits available for certification after
959 April 1, 2012, but not yet certified has been awarded for high
960 impact television series, then no high-impact television series
961 is eligible for tax credits under this subparagraph. Tax credits
962 initially certified for a high-impact television series after
963 April 1, 2012, may not be awarded if the award will cause the
964 percentage threshold in this sub-subparagraph to be exceeded.
965 This sub-subparagraph does not prohibit the award of tax credits
966 certified before April 1, 2012, for high-impact television
967 series.
968 c. Subject to sub-subparagraph b., First priority in the
969 queue for tax credit awards not yet certified shall be given to
970 high-impact television series and high-impact digital media
971 projects. For the purposes of determining priority between a
972 high-impact television series and a high-impact digital media
973 project, the first position must go to the first application
974 received. Thereafter, priority shall be determined by
975 alternating between a high-impact television series and a high
976 impact digital media project on a first-come, first-served
977 basis. However, if the Office of Film and Entertainment receives
978 an application for a high-impact television series or high
979 impact digital media project that would be certified but for the
980 alternating priority, the office may certify the project as
981 being in the priority position if an application that would
982 normally be the priority position is not received within 5
983 business days.
984 d. A qualified production for which at least 70 67 percent
985 of its principal photography days occur within a county region
986 designated as an underutilized county region at the time that
987 the production is certified is eligible for an additional 5
988 percent tax credit.
989 b.e. A qualified production that employs students enrolled
990 full-time in a film and entertainment-related or digital media
991 related course of study at an institution of higher education in
992 this state, individuals participating in the Road-to
993 Independence Program under s. 409.1451, individuals with
994 developmental disabilities as defined in s. 393.063 residing in
995 this state, and veterans residing in this state, is eligible for
996 an additional 15 percent tax credit on qualified expenditures
997 that are wages, salaries, or other compensation paid to such
998 students. The additional 15 percent tax credit is also
999 applicable to persons hired within 12 months after graduating
1000 from a film and entertainment-related or digital media-related
1001 course of study at an institution of higher education in this
1002 state. The additional 15 percent tax credit applies to qualified
1003 expenditures that are wages, salaries, or other compensation
1004 paid to such recent graduates for 1 year after the date of
1005 hiring.
1006 f. A qualified production for which 50 percent or more of
1007 its principal photography occurs at a qualified production
1008 facility, or a qualified digital media project or the digital
1009 animation component of a qualified production for which 50
1010 percent or more of the project’s or component’s qualified
1011 expenditures are related to a qualified digital media production
1012 facility, is eligible for an additional 5 percent tax credit on
1013 actual qualified expenditures for production activity at that
1014 facility.
1015 c. A qualified production that completes a capital
1016 investment in this state of at least $2 million for property
1017 improvements before the completion of the qualified production,
1018 is eligible for an additional 5 percent tax credit. The capital
1019 investment must be permanent and must be made after July 1,
1020 2015, and the property must remain in this state after the
1021 production ends. A capital investment may be the basis of an
1022 application only once, unless the qualified production makes an
1023 additional $2 million of substantial changes to the property.
1024 d. A qualified production determined by the department to
1025 be a family-friendly production, based on review of the script
1026 and review of the final release version, is eligible for an
1027 additional 5 percent tax credit. The department must consult
1028 with the Division of Film and Entertainment in making this
1029 determination.
1030 e.g. A qualified production is not eligible for tax credits
1031 provided under this paragraph totaling more than 25 30 percent
1032 of its actual qualified expenses.
1033 2. Commercial and music video queue.—Three percent of tax
1034 credits authorized pursuant to subsection (7) (6) in any state
1035 fiscal year must be dedicated to the commercial and music video
1036 queue. A qualified production company that produces national or
1037 regional commercials or music videos may be eligible for a tax
1038 credit award if it demonstrates a minimum of $100,000 in
1039 qualified expenditures per national or regional commercial or
1040 music video and exceeds a combined threshold of $500,000 after
1041 combining actual qualified expenditures from qualified
1042 commercials and music videos during a single state fiscal year.
1043 After a qualified production company that produces commercials,
1044 music videos, or both reaches the threshold of $500,000, it is
1045 eligible to apply for certification for a tax credit award. The
1046 maximum credit award for a qualified production company that
1047 produces commercials shall be equal to 20 percent of its actual
1048 qualified expenditures up to a maximum of $500,000. A qualified
1049 production company that produces music videos may be eligible
1050 for a tax credit if it demonstrates a minimum of $25,000 in
1051 qualified expenditures per music video and exceeds a combined
1052 threshold of $125,000 after combining actual qualified
1053 expenditures from qualified music videos during a single state
1054 fiscal year. After a qualified production company that produces
1055 music videos reaches the threshold of $125,000, it is eligible
1056 to apply for certification for a tax credit award. The maximum
1057 credit award for a qualified production company that produces
1058 music videos shall be equal to 20 percent of its actual
1059 qualified expenditures up to a maximum of $125,000. If there is
1060 a surplus at the end of a fiscal year after the department
1061 Office of Film and Entertainment certifies and determines the
1062 tax credits for all qualified commercial and video projects,
1063 such surplus tax credits shall be carried forward to the
1064 following fiscal year and are available to any eligible
1065 qualified productions under the general production queue.
1066 3. Independent and emerging media production queue.—Three
1067 percent of tax credits authorized pursuant to subsection (7) (6)
1068 in any state fiscal year must be dedicated to the independent
1069 and emerging media production queue. This queue is intended to
1070 encourage independent film and emerging media production in this
1071 state. Any qualified production, excluding commercials,
1072 infomercials, or music videos, which demonstrates at least
1073 $100,000, but not more than $625,000, in total qualified
1074 expenditures is eligible for tax credits equal to 20 percent of
1075 its actual qualified expenditures. If a surplus exists at the
1076 end of a fiscal year after the department Office of Film and
1077 Entertainment certifies and determines the tax credits for all
1078 qualified independent and emerging media production projects,
1079 such surplus tax credits shall be carried forward to the
1080 following fiscal year and are available to any eligible
1081 qualified productions under the general production queue.
1082 4. Family-friendly productions.—A certified theatrical or
1083 direct-to-video motion picture production or video game
1084 determined by the Commissioner of Film and Entertainment, with
1085 the advice of the Florida Film and Entertainment Advisory
1086 Council, to be family-friendly, based on review of the script
1087 and review of the final release version, is eligible for an
1088 additional tax credit equal to 5 percent of its actual qualified
1089 expenditures. Family-friendly productions are those that have
1090 cross-generational appeal; would be considered suitable for
1091 viewing by children age 5 or older; are appropriate in theme,
1092 content, and language for a broad family audience; embody a
1093 responsible resolution of issues; and do not exhibit or imply
1094 any act of smoking, sex, nudity, or vulgar or profane language.
1095 (b)(c) Withdrawal of certification tax credit eligibility.
1096 The department shall withdraw the certification of a qualified
1097 or certified production if the must continue on a reasonable
1098 schedule or timely completion of the certified production is
1099 delayed, including a break in production, a change in the
1100 production schedule, or the loss of financing for the
1101 production. A certified production must notify the department
1102 within 5 days after any circumstance that delays the reasonable
1103 schedule or timely completion. The certification of a certified
1104 production may not be withdrawn if the production provides the
1105 department with proof of replacement financing within 10 days
1106 after the loss of financing for the production. To keep a
1107 reasonable schedule, the certified production must begin which
1108 includes beginning principal photography or the production
1109 project in this state within no more than 45 calendar days
1110 before or after the principal photography or project start date
1111 provided in the production’s program application. The department
1112 shall withdraw the eligibility of a qualified or certified
1113 production that does not continue on a reasonable schedule.
1114 (c)(d) Election and distribution of tax credits.—
1115 1. A certified production company receiving a tax credit
1116 award under this section shall, at the time the credit is
1117 awarded by the department after production is completed and all
1118 requirements to receive a credit award have been met, make an
1119 irrevocable election to apply the credit against taxes due under
1120 chapter 220, against state taxes collected or accrued under
1121 chapter 212, or against a stated combination of the two taxes.
1122 The election is binding upon any distributee, successor,
1123 transferee, or purchaser. The department shall notify the
1124 Department of Revenue of any election made pursuant to this
1125 paragraph.
1126 2. A qualified production company is eligible for tax
1127 credits against its sales and use tax liabilities and corporate
1128 income tax liabilities as provided in this section. However, tax
1129 credits awarded under this section may not be claimed against
1130 sales and use tax liabilities or corporate income tax
1131 liabilities for any tax period beginning before July 1, 2011,
1132 regardless of when the credits are applied for or awarded.
1133 (d)(e) Tax credit carryforward.—If the certified production
1134 company cannot use the entire tax credit in the taxable year or
1135 reporting period in which the credit is awarded, any excess
1136 amount may be carried forward to a succeeding taxable year or
1137 reporting period. A tax credit applied against taxes imposed
1138 under chapter 212 may be carried forward for a maximum of 5
1139 years after the date the credit is awarded. A tax credit applied
1140 against taxes imposed under chapter 220 may be carried forward
1141 for a maximum of 5 taxable years after the taxable year in which
1142 date the credit is awarded. An unused remaining tax credit
1143 expires after this period, after which the credit expires and
1144 may not be used.
1145 (e)(f) Consolidated returns.—A certified production company
1146 that files a Florida consolidated return as a member of an
1147 affiliated group under s. 220.131(1) may be allowed the credit
1148 on a consolidated return basis up to the amount of the tax
1149 imposed upon the consolidated group under chapter 220.
1150 (f)(g) Partnership and noncorporate distributions.—A
1151 qualified production company that is not a corporation as
1152 defined in s. 220.03 may elect to distribute tax credits awarded
1153 under this section to its partners or members in proportion to
1154 their respective distributive income or loss in the taxable year
1155 in which the tax credits were awarded.
1156 (g)(h) Mergers or acquisitions.—Tax credits available under
1157 this section to a certified production company may succeed to a
1158 surviving or acquiring entity subject to the same conditions and
1159 limitations as described in this section; however, they may not
1160 be transferred again by the surviving or acquiring entity.
1161 (5) TRANSFER OF TAX CREDITS.—
1162 (a) Authorization.—Upon application to the Office of Film
1163 and Entertainment and approval by the department, a certified
1164 production company, or a partner or member that has received a
1165 distribution under paragraph (4)(f) (4)(g), may elect to
1166 transfer, in whole or in part, any unused credit amount granted
1167 under this section. An election to transfer any unused tax
1168 credit amount under chapter 212 or chapter 220 must be made no
1169 later than 5 years after the date the credit is awarded, after
1170 which period the credit expires and may not be used. The
1171 department shall notify the Department of Revenue of the
1172 election and transfer.
1173 (b) Number of transfers permitted.—A certified production
1174 company that elects to apply a credit amount against taxes
1175 remitted under chapter 212 is permitted a one-time transfer of
1176 unused credits to one transferee. A certified production company
1177 that elects to apply a credit amount against taxes due under
1178 chapter 220 is permitted a one-time transfer of unused credits
1179 to no more than four transferees, and such transfers must occur
1180 in the same taxable year.
1181 (c) Transferee rights and limitations.—The transferee is
1182 subject to the same rights and limitations as the certified
1183 production company awarded the tax credit, except that the
1184 initial transferee shall be permitted a one-time transfer of
1185 unused credits to no more than two subsequent transferees, and
1186 such transfers must occur in the same taxable year as the
1187 credits were received by the initial transferee, after which the
1188 subsequent transferees may not sell or otherwise transfer the
1189 tax credit.
1190 (6) RELINQUISHMENT OF TAX CREDITS.—
1191 (a) Beginning July 1, 2011, a certified production company,
1192 or any person who has acquired a tax credit from a certified
1193 production company pursuant to subsections (4) and (5), may
1194 elect to relinquish the tax credit to the Department of Revenue
1195 in exchange for 90 percent of the amount of the relinquished tax
1196 credit.
1197 (b) The Department of Revenue may approve payments to
1198 persons relinquishing tax credits pursuant to this subsection.
1199 (c) Subject to legislative appropriation, the Department of
1200 Revenue shall request the Chief Financial Officer to issue
1201 warrants to persons relinquishing tax credits. Payments under
1202 this subsection shall be made from the funds from which the
1203 proceeds from the taxes against which the tax credits could have
1204 been applied pursuant to the irrevocable election made by the
1205 certified production company under subsection (4) are deposited.
1206 (7) ANNUAL ALLOCATION OF TAX CREDITS.—
1207 (a) The aggregate amount of the tax credits that may be
1208 certified pursuant to paragraph (3)(d) may not exceed:
1209 1. For fiscal year 2010-2011, $53.5 million.
1210 2. For fiscal year 2011-2012, $74.5 million.
1211 3. For fiscal years 2012-2013, 2013-2014, 2014-2015, and
1212 2015-2016, $42 million per fiscal year.
1213 (b) Any portion of the maximum amount of tax credits
1214 established per fiscal year in paragraph (a) that is not
1215 certified as of the end of a fiscal year shall be carried
1216 forward and made available for certification during the
1217 following 2 fiscal years in addition to the amounts available
1218 for certification under paragraph (a) for those fiscal years.
1219 (c) Upon approval of the final tax credit award amount
1220 pursuant to subparagraph (3)(g)3. (3)(f)2., an amount equal to
1221 the difference between the maximum tax credit award amount
1222 previously certified under paragraph (3)(d) and the approved
1223 final tax credit award amount shall immediately be available for
1224 recertification during the current and following fiscal years in
1225 addition to the amounts available for certification under
1226 paragraph (a) for those fiscal years.
1227 (d) Tax credit award amounts available for certification on
1228 and after July 1, 2015, may not be certified before the fiscal
1229 year in which they will become available as specified in
1230 paragraph (a). Additionally, for amounts available for
1231 certification on and after July 1, 2015, one-half of the amount
1232 available in the fiscal year shall be available for
1233 certification in “Application Cycle A”, and the remaining amount
1234 available in the fiscal year shall be available for
1235 certification in “Application Cycle B.” If, during a fiscal
1236 year, the total amount of credits applied for, pursuant to
1237 paragraph (3)(a), exceeds the amount of credits available for
1238 certification in that fiscal year, such excess shall be treated
1239 as having been applied for on the first day of the next fiscal
1240 year in which credits remain available for certification.
1241 (8) LIMITATION WITH OTHER PROGRAMS.—A qualified production
1242 that is certified for tax credits under this section may not
1243 simultaneously receive benefits under ss. 288.1256 and 288.1258
1244 for the same production.
1245 (9)(8) RULES, POLICIES, AND PROCEDURES.—
1246 (a) The department may adopt rules pursuant to ss.
1247 120.536(1) and 120.54 and develop policies and procedures to
1248 implement and administer this section, including, but not
1249 limited to, rules specifying requirements for the application
1250 and approval process, records required for substantiation for
1251 tax credits, procedures for making the election in paragraph
1252 (4)(c) (4)(d), the manner and form of documentation required to
1253 claim tax credits awarded or transferred under this section, and
1254 marketing requirements for tax credit recipients.
1255 (b) The Department of Revenue may adopt rules pursuant to
1256 ss. 120.536(1) and 120.54 to administer this section, including
1257 rules governing the examination and audit procedures required to
1258 administer this section and the manner and form of documentation
1259 required to claim tax credits awarded, transferred, or
1260 relinquished under this section.
1261 (10)(9) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
1262 CREDITS; FRAUDULENT CLAIMS.—
1263 (a) Audit authority.—The Department of Revenue may conduct
1264 examinations and audits as provided in s. 213.34 to verify that
1265 tax credits under this section are received, transferred, and
1266 applied according to the requirements of this section. If the
1267 Department of Revenue determines that tax credits are not
1268 received, transferred, or applied as required by this section,
1269 it may, in addition to the remedies provided in this subsection,
1270 pursue recovery of such funds pursuant to the laws and rules
1271 governing the assessment of taxes.
1272 (b) Revocation of tax credits.—The department may revoke or
1273 modify any written decision qualifying, certifying, or otherwise
1274 granting eligibility for tax credits under this section if it is
1275 discovered that the tax credit applicant submitted any false
1276 statement, representation, or certification in any application,
1277 record, report, plan, or other document filed in an attempt to
1278 receive tax credits under this section. The department shall
1279 immediately notify the Department of Revenue of any revoked or
1280 modified orders affecting previously granted tax credits.
1281 Additionally, the applicant must notify the Department of
1282 Revenue of any change in its tax credit claimed.
1283 (c) Forfeiture of tax credits.—A determination by the
1284 Department of Revenue, as a result of an audit pursuant to
1285 paragraph (a) or from information received from the department
1286 or the Division Office of Film and Entertainment, that an
1287 applicant received tax credits pursuant to this section to which
1288 the applicant was not entitled is grounds for forfeiture of
1289 previously claimed and received tax credits. The applicant is
1290 responsible for returning forfeited tax credits to the
1291 Department of Revenue, and such funds shall be paid into the
1292 General Revenue Fund of the state. Tax credits purchased in good
1293 faith are not subject to forfeiture unless the transferee
1294 submitted fraudulent information in the purchase or failed to
1295 meet the requirements in subsection (5).
1296 (d) Fraudulent claims.—Any applicant that submits
1297 fraudulent information under this section is liable for
1298 reimbursement of the reasonable costs and fees associated with
1299 the review, processing, investigation, and prosecution of the
1300 fraudulent claim. An applicant that obtains a credit payment
1301 under this section through a claim that is fraudulent is liable
1302 for reimbursement of the credit amount plus a penalty in an
1303 amount double the credit amount. The penalty is in addition to
1304 any criminal penalty to which the applicant is liable for the
1305 same acts. The applicant is also liable for costs and fees
1306 incurred by the state in investigating and prosecuting the
1307 fraudulent claim.
1308 (11)(10) ANNUAL REPORT.—Each November 1, the department
1309 Office of Film and Entertainment shall submit an annual report
1310 for the previous fiscal year to the Governor, the President of
1311 the Senate, and the Speaker of the House of Representatives
1312 which outlines the incentive program’s return on investment and
1313 economic benefits to the state. The report must also include an
1314 estimate of the full-time equivalent positions created by each
1315 production that received tax credits under this section and
1316 information relating to the distribution of productions
1317 receiving credits by geographic region and type of production.
1318 The report must also include the expenditures report required
1319 under s. 288.915, s. 288.1253(3) and the information describing
1320 the relationship between tax exemptions and incentives to
1321 industry growth required under s. 288.1258(5), and program
1322 performance information under s. 288.1256. The department may
1323 work with the Division of Film and Entertainment to develop the
1324 annual report.
1325 (12)(11) REPEAL.—This section is repealed July 1, 2021
1326 2016, except that:
1327 (a) Tax credits certified under paragraph (3)(d) before
1328 July 1, 2021 2016, may be awarded under paragraph (3)(g) (3)(f)
1329 on or after July 1, 2021 2016, if the other requirements of this
1330 section are met.
1331 (b) Tax credits carried forward under paragraph (4)(d)
1332 (4)(e) remain valid for the period specified.
1333 (c) Subsections (5), (9), (8) and (10) (9) shall remain in
1334 effect until July 1, 2026 July 1, 2021.
1335 Section 6. Beginning July 1, 2015, if an application is on
1336 file with the Department of Economic Opportunity to receive a
1337 tax credit through the entertainment industry program under s.
1338 288.1254, Florida Statutes, and the application has not been
1339 certified for a tax credit award under current s. 288.1254(3)(d)
1340 by the department, the application is deemed denied.
1341 Section 7. Section 288.1256, Florida Statutes, is created
1342 to read:
1343 288.1256 Entertainment action fund.—
1344 (1) The entertainment action fund is created within the
1345 department in order to respond to extraordinary opportunities
1346 and to compete effectively with other states to attract and
1347 retain production companies and to provide favorable conditions
1348 for the growth of the entertainment industry in this state.
1349 (2) As used in this section, the term:
1350 (a) “Division” means the Division of Film and Entertainment
1351 within Enterprise Florida, Inc.
1352 (b) “Principal photography” means the filming of major or
1353 significant components of the project which involve lead actors.
1354 (c) “Production” means a theatrical, direct-to-video, or
1355 direct-to-Internet motion picture; a made-for-television motion
1356 picture; visual effects or digital animation sequences produced
1357 in conjunction with a motion picture; a commercial; a music
1358 video; an industrial or educational film; an infomercial; a
1359 documentary film; a television pilot program; a presentation for
1360 a television pilot program; a television series, including, but
1361 not limited to, a drama, a reality show, a comedy, a soap opera,
1362 a telenovela, a game show, an awards show, or a miniseries
1363 production; a direct-to-Internet television series; or a digital
1364 media project by the entertainment industry. One season of a
1365 television series is considered one production. The term does
1366 not include a weather or market program; a sporting event or a
1367 sporting event broadcast; a gala; a production that solicits
1368 funds; a home shopping program; a political program; a political
1369 documentary; political advertising; a gambling-related project
1370 or production; a concert production; a local, regional, or
1371 Internet-distributed-only news show or current-events show; a
1372 sports news or sports recap show; a pornographic production; or
1373 any production deemed obscene under chapter 847. A production
1374 may be produced on or by film, tape, or otherwise by means of a
1375 motion picture camera; electronic camera or device; tape device;
1376 computer; any combination of the foregoing; or any other means,
1377 method, or device.
1378 (d) “Production company” means a corporation, limited
1379 liability company, partnership, or other legal entity engaged in
1380 one or more productions in this state.
1381 (e) “Production expenditures” means the costs of tangible
1382 and intangible property used for, and services performed
1383 primarily and customarily in, production, including
1384 preproduction and postproduction, but excluding costs for
1385 development, marketing, and distribution. The term includes, but
1386 is not limited to:
1387 1. Wages, salaries, or other compensation paid to legal
1388 residents of this state, including amounts paid through payroll
1389 service companies, for technical and production crews,
1390 directors, producers, and performers.
1391 2. Net expenditures for sound stages, backlots, production
1392 editing, digital effects, sound recordings, sets, and set
1393 construction.
1394 3. Net expenditures for rental equipment, including, but
1395 not limited to, cameras and grip or electrical equipment.
1396 4. Up to $300,000 of the costs of newly purchased computer
1397 software and hardware unique to the project, including servers,
1398 data processing, and visualization technologies, which are
1399 located in and used exclusively in this state for the production
1400 of digital media.
1401 5. Expenditures for meals, travel, and accommodations. As
1402 used in this paragraph, the term “net expenditures” means the
1403 actual amount of money a project spent for equipment or other
1404 tangible personal property, after subtracting any consideration
1405 received for reselling or transferring the item after the
1406 production ends, if applicable.
1407 (f) “Project” means a production in this state meeting the
1408 requirements of this section. The term does not include a
1409 production:
1410 1. In which less than 70 percent of the positions that make
1411 up its production cast and below-the-line production crew are
1412 filled by legal residents of this state, whose residency is
1413 demonstrated by a valid Florida driver license or other state
1414 issued identification confirming residency, or students enrolled
1415 full-time in an entertainment-related course of study at an
1416 institution of higher education in this state; or
1417 2. That contains obscene content as defined in s.
1418 847.001(10).
1419 (g) “Qualified expenditures” means production expenditures
1420 incurred in this state by a production company for:
1421 1. Goods purchased or leased from, or services, including,
1422 but not limited to, insurance costs and bonding, payroll
1423 services, and legal fees, which are provided by a vendor or
1424 supplier in this state that is registered with the Department of
1425 State or the Department of Revenue, has a physical location in
1426 this state, and employs one or more legal residents of this
1427 state. This does not include rebilled goods or services provided
1428 by an in-state company from out-of-state vendors or suppliers.
1429 When services provided by the vendor or supplier include
1430 personal services or labor, only personal services or labor
1431 provided by residents of this state, evidenced by the required
1432 documentation of residency in this state, qualify.
1433 2. Payments to legal residents of this state in the form of
1434 salary, wages, or other compensation up to a maximum of $400,000
1435 per resident unless otherwise specified in subsection (4). A
1436 completed declaration of residency in this state must accompany
1437 the documentation submitted to the department for reimbursement.
1438
1439 For a project involving an event, such as an awards show, the
1440 term does not include expenditures solely associated with the
1441 event itself and not directly required by the production. The
1442 term does not include expenditures incurred before the agreement
1443 is signed. The production company may not include in the
1444 calculation for qualified expenditures the original purchase
1445 price for equipment or other tangible property that is later
1446 sold or transferred by the production company for consideration.
1447 In such cases, the qualified expenditure is the net of the
1448 original purchase price minus the consideration received upon
1449 sale or transfer.
1450 (h) “Underutilized county” means a county in which less
1451 than $500,000 in qualified expenditures were made in the last 2
1452 fiscal years.
1453 (3) A production company may apply for funds from the
1454 entertainment action fund for a production or successive seasons
1455 of a production. The department and the division shall jointly
1456 review and evaluate applications to determine the eligibility of
1457 each project consistent with the requirements of this section.
1458 The department shall select projects that maximize the return to
1459 the state.
1460 (4) The department and the division, in their review and
1461 evaluation of applications, must consider the following
1462 criteria, with priority given in descending order, with the
1463 highest priority given to paragraph (a):
1464 (a) The number of state residents that will be employed in
1465 full-time equivalent and part-time positions related to the
1466 project and the duration of such employment and the average
1467 wages paid to such residents. Preference shall be given to a
1468 project that expects to pay higher than the statewide average
1469 wage.
1470 (b) The amount of qualified and nonqualified expenditures
1471 that will be made in this state.
1472 (c) Planned or executed contracts with production
1473 facilities or soundstages in this state and the percentage of
1474 principal photography or production activity that will occur at
1475 each location.
1476 (d) Planned preproduction and postproduction to occur in
1477 this state.
1478 (e) The amount of capital investment, especially fixed
1479 capital investment, to be made directly by the production
1480 company in this state related to the project and the amount of
1481 any other capital investment to be made in this state related to
1482 the project.
1483 (f) The duration of the project in this state.
1484 (g) The amount and duration of principal photography or
1485 production activity that will occur in an underutilized county.
1486 (h) The amount of promotion of Florida that the production
1487 company will provide for the state. This includes marketing
1488 materials promoting this state as a tourist destination or a
1489 film and entertainment production destination; placement of
1490 state agency logos in the production and credits; permitted use
1491 of production assets, characters, and themes by this state;
1492 promotional videos for this state included on optical disc
1493 formats; and other marketing integration.
1494 (i) The employment of students enrolled full-time in an
1495 entertainment-related course of study at an institution of
1496 higher education in this state or of graduates from such an
1497 institution within 12 months after graduation.
1498 (j) Plans to work with entertainment industry-related
1499 courses of study at an institution of higher education in this
1500 state.
1501 (k) The local support and any financial commitment for the
1502 project.
1503 (l) The project is about this state or shows this state in
1504 a positive light.
1505 (m) A review of the production company’s past activities in
1506 this state or other states.
1507 (n) The length of time the production company has made
1508 productions in this state, the number of productions the
1509 production company has made in this state, and the production
1510 company’s overall commitment to this state. This includes a
1511 production company that is based in this state.
1512 (o) Expected contributions to this state’s economy,
1513 consistent with the state strategic economic development plan
1514 prepared by the department.
1515 (p) The expected effect of the award on the viability of
1516 the project and the probability that the project would be
1517 undertaken in this state if funds are granted to the production
1518 company.
1519 (5) A production company must have financing in place for a
1520 project before it applies for funds under this section.
1521 (6) The department shall prescribe a form upon which an
1522 application must be made. At a minimum, the application must
1523 include:
1524 (a) The applicant’s federal employer identification number,
1525 reemployment assistance account number, and state sales tax
1526 registration number, as applicable. If such numbers are not
1527 available at the time of application, they must be submitted to
1528 the department in writing before the disbursement of any
1529 payments.
1530 (b) The signature of the applicant.
1531 (c) A detailed budget of planned qualified and nonqualified
1532 expenditures in this state.
1533 (d) The type and amount of capital investment that will be
1534 made in this state.
1535 (e) The locations in this state at which the project will
1536 occur.
1537 (f) The anticipated commencement date and duration of the
1538 project.
1539 (g) The proposed number of state residents and nonstate
1540 residents that will be employed in full-time equivalent and
1541 part-time positions related to the project and wages paid to
1542 such persons.
1543 (h) The total number of full-time equivalent employees
1544 employed by the production company in this state, if applicable.
1545 (i) Proof of financing for the project.
1546 (j) The amount of promotion of Florida that the production
1547 company will provide for the state.
1548 (k) An attestation verifying that the information provided
1549 on the application is true and accurate.
1550 (l) Any additional information requested by the department
1551 or division.
1552 (7) The department must make a recommendation to the
1553 Governor to approve or deny an award within 7 days after
1554 completion of the review and evaluation. An award of funds may
1555 not constitute more than 30 percent of qualified expenditures in
1556 this state and may not fund wages paid to nonresidents. A
1557 production must start within 1 year after the date the project
1558 is approved by the Governor. The recommendation must include the
1559 performance conditions that the project must meet to obtain
1560 funds.
1561 (a) The Governor may approve projects without consulting
1562 the Legislature for projects requiring less than $2 million in
1563 funding.
1564 (b) For projects requiring funding in the amount of $2
1565 million to $5 million, the Governor shall provide a written
1566 description and evaluation of a project recommended for approval
1567 to the chair and vice chair of the Legislative Budget Commission
1568 at least 10 days before giving final approval for the project.
1569 The recommendation must include the performance conditions that
1570 the project must meet in order to obtain funds.
1571 (c) If the chair or vice chair of the Legislative Budget
1572 Commission or the President of the Senate or the Speaker of the
1573 House of Representatives timely advises the Executive Office of
1574 the Governor, in writing, that such action or proposed action
1575 exceeds the delegated authority of the Executive Office of the
1576 Governor or is contrary to legislative policy or intent, the
1577 Executive Office of the Governor shall void the release of funds
1578 and instruct the department to immediately change such action or
1579 proposed action until the Legislative Budget Commission or the
1580 Legislature addresses the issue.
1581 (d) Any project exceeding $5 million must be approved by
1582 the Legislative Budget Commission before the funding is
1583 released.
1584 (8) Upon the approval of the Governor, the department and
1585 the production company shall enter into an agreement that
1586 specifies, at a minimum:
1587 (a) The total amount of funds awarded and the schedule of
1588 payment.
1589 (b) The performance conditions for payment of moneys from
1590 the fund, including full- and part-time employment in this
1591 state; wages paid in this state; capital investment in this
1592 state, including fixed capital investment; marketing and
1593 promotion in this state; the date by which production must start
1594 and the duration of production; and the amount of qualified
1595 expenditures in this state.
1596 (c) The methodology for validating performance and the date
1597 by which the production company must submit proof of performance
1598 to the department.
1599 (d) That the department may review and verify any records
1600 of the production company to ascertain whether that company is
1601 in compliance with this section and the agreement.
1602 (e) Sanctions for failure to meet performance conditions.
1603 (f) That payment of moneys from the fund is contingent upon
1604 sufficient appropriation of funds by the Legislature.
1605 (9) The agreement must be finalized and signed by an
1606 authorized officer of the production company within 90 days
1607 after the Governor’s approval. A production company that is
1608 approved under this section may not simultaneously receive
1609 benefits under ss. 288.1254 and 288.1258 for the same
1610 production.
1611 (10) The department shall validate contractor performance
1612 and report such validation in the annual report required under
1613 s. 288.1254.
1614 (11) Contingent upon an annual appropriation by the
1615 Legislature, the department may not approve awards in excess of
1616 the amount appropriated for a fiscal year. The department must
1617 maintain a schedule of funds to be paid from the appropriation
1618 for the fiscal year that begins on July 1. For the first 6
1619 months of each fiscal year, the department shall set aside 50
1620 percent of the amount appropriated for the fund by the
1621 Legislature. At the end of the 6-month period, these funds may
1622 be used to provide funding for any project that qualifies under
1623 this section.
1624 (12) A production company that submits fraudulent
1625 information under this section is liable for reimbursement of
1626 the reasonable costs and fees associated with the review,
1627 processing, investigation, and prosecution of the fraudulent
1628 claim. A production company that receives a payment under this
1629 section through a claim that is fraudulent is liable for
1630 reimbursement of the payment amount, plus a penalty in an amount
1631 double the payment amount. The penalty is in addition to any
1632 criminal penalty for which the production company is liable for
1633 the same acts. The production company is also liable for costs
1634 and fees incurred by the state in investigating and prosecuting
1635 the fraudulent claim.
1636 (13) The department may not waive any provision or provide
1637 an extension of time to meet any requirement of this section.
1638 (14) This section expires on July 1, 2025. An agreement in
1639 existence on that date shall continue in effect in accordance
1640 with its terms.
1641 Section 8. Section 288.1258, Florida Statutes, is amended
1642 to read:
1643 288.1258 Entertainment industry qualified production
1644 companies; application procedure; categories; duties of the
1645 Department of Revenue; records and reports.—
1646 (1) PRODUCTION COMPANIES AUTHORIZED TO APPLY.—
1647 (a) Any production company engaged in this state in the
1648 production of motion pictures, made-for-TV motion pictures,
1649 television series, commercial advertising, music videos, or
1650 sound recordings may submit an application to the Department of
1651 Revenue to be approved by the Department of Economic Opportunity
1652 Office of Film and Entertainment as a qualified production
1653 company for the purpose of receiving a sales and use tax
1654 certificate of exemption from the Department of Revenue to
1655 exempt purchases on or after the date a complete application is
1656 filed with the Department of Revenue for exemptions under ss.
1657 212.031, 212.06, and 212.08.
1658 (b) As used in For the purposes of this section, the term
1659 “qualified production company” means any production company that
1660 has submitted a properly completed application to the Department
1661 of Revenue and that is subsequently qualified by the Department
1662 of Economic Opportunity Office of Film and Entertainment.
1663 (2) APPLICATION PROCEDURE.—
1664 (a) The Department of Revenue shall will review all
1665 submitted applications for the required information. Within 10
1666 working days after the receipt of a properly completed
1667 application, the Department of Revenue shall will forward the
1668 completed application to the Department of Economic Opportunity
1669 Office of Film and Entertainment for approval.
1670 (b)1. The Department of Economic Opportunity Office of Film
1671 and Entertainment shall establish a process by which an
1672 entertainment industry production company may be approved by the
1673 department office as a qualified production company and may
1674 receive a certificate of exemption from the Department of
1675 Revenue for the sales and use tax exemptions under ss. 212.031,
1676 212.06, and 212.08. A production company that is approved under
1677 this section may not simultaneously receive benefits under ss.
1678 288.1254 and 288.1256 for the same production.
1679 2. Upon determination by the department Office of Film and
1680 Entertainment that a production company meets the established
1681 approval criteria and qualifies for exemption, the department
1682 Office of Film and Entertainment shall return the approved
1683 application or application renewal or extension to the
1684 Department of Revenue, which shall issue a certificate of
1685 exemption.
1686 3. The department Office of Film and Entertainment shall
1687 deny an application or application for renewal or extension from
1688 a production company if it determines that the production
1689 company does not meet the established approval criteria.
1690 (c) The department Office of Film and Entertainment shall
1691 develop, with the cooperation of the Department of Revenue, the
1692 Division of Film and Entertainment within Enterprise Florida,
1693 Inc., and local government entertainment industry promotion
1694 agencies, a standardized application form for use in approving
1695 qualified production companies.
1696 1. The application form shall include, but not be limited
1697 to, production-related information on employment, proposed
1698 budgets, planned purchases of items exempted from sales and use
1699 taxes under ss. 212.031, 212.06, and 212.08, a signed
1700 affirmation from the applicant that any items purchased for
1701 which the applicant is seeking a tax exemption are intended for
1702 use exclusively as an integral part of entertainment industry
1703 preproduction, production, or postproduction activities engaged
1704 in primarily in this state, and a signed affirmation from the
1705 department Office of Film and Entertainment that the information
1706 on the application form has been verified and is correct. In
1707 lieu of information on projected employment, proposed budgets,
1708 or planned purchases of exempted items, a production company
1709 seeking a 1-year certificate of exemption may submit summary
1710 historical data on employment, production budgets, and purchases
1711 of exempted items related to production activities in this
1712 state. Any information gathered from production companies for
1713 the purposes of this section shall be considered confidential
1714 taxpayer information and shall be disclosed only as provided in
1715 s. 213.053.
1716 2. The application form may be distributed to applicants by
1717 the department, the Division Office of Film and Entertainment,
1718 or local film commissions.
1719 (d) All applications, renewals, and extensions for
1720 designation as a qualified production company shall be processed
1721 by the department Office of Film and Entertainment.
1722 (e) If In the event that the Department of Revenue
1723 determines that a production company no longer qualifies for a
1724 certificate of exemption, or has used a certificate of exemption
1725 for purposes other than those authorized by this section and
1726 chapter 212, the Department of Revenue shall revoke the
1727 certificate of exemption of that production company, and any
1728 sales or use taxes exempted on items purchased or leased by the
1729 production company during the time such company did not qualify
1730 for a certificate of exemption or improperly used a certificate
1731 of exemption shall become immediately due to the Department of
1732 Revenue, along with interest and penalty as provided by s.
1733 212.12. In addition to the other penalties imposed by law, any
1734 person who knowingly and willfully falsifies an application, or
1735 uses a certificate of exemption for purposes other than those
1736 authorized by this section and chapter 212, commits a felony of
1737 the third degree, punishable as provided in ss. 775.082,
1738 775.083, and 775.084.
1739 (3) CATEGORIES.—
1740 (a)1. A production company may be qualified for designation
1741 as a qualified production company for a period of 1 year if the
1742 company has operated a business in Florida at a permanent
1743 address for a period of 12 consecutive months. Such a qualified
1744 production company shall receive a single 1-year certificate of
1745 exemption from the Department of Revenue for the sales and use
1746 tax exemptions under ss. 212.031, 212.06, and 212.08, which
1747 certificate shall expire 1 year after issuance or upon the
1748 cessation of business operations in the state, at which time the
1749 certificate shall be surrendered to the Department of Revenue.
1750 2. The Office of Film and Entertainment shall develop a
1751 method by which A qualified production company may submit a new
1752 application for annually renew a 1-year certificate of exemption
1753 upon the expiration of that company’s certificate of exemption;
1754 however, upon approval of the department, such qualified
1755 production company may annually renew the 1-year certificate of
1756 exemption for a period of up to 5 years without submitting
1757 requiring the production company to resubmit a new application
1758 during that 5-year period.
1759 3. Each year, or upon surrender of the certificate of
1760 exemption to the Department of Revenue, the Any qualified
1761 production company shall may submit to the department aggregate
1762 data for production-related information on employment,
1763 expenditures in this state, capital investment, and purchases of
1764 items exempted from sales and use taxes under ss. 212.031,
1765 212.06, and 212.08 for inclusion in the annual report required
1766 under subsection (5) a new application for a 1-year certificate
1767 of exemption upon the expiration of that company’s certificate
1768 of exemption.
1769 (b)1. A production company may be qualified for designation
1770 as a qualified production company for a period of 90 days. Such
1771 production company shall receive a single 90-day certificate of
1772 exemption from the Department of Revenue for the sales and use
1773 tax exemptions under ss. 212.031, 212.06, and 212.08, which
1774 certificate shall expire 90 days after issuance or upon the
1775 cessation of business operations in the state, at which time,
1776 with extensions contingent upon approval of the Office of Film
1777 and Entertainment. the certificate shall be surrendered to the
1778 Department of Revenue upon its expiration.
1779 2. A qualified production company may submit a new
1780 application for a 90-day certificate of exemption each quarter
1781 upon the expiration of that company’s certificate of exemption;
1782 however, upon approval of the department, such qualified
1783 production company may renew the 90-day certificate of exemption
1784 for a period of up to 1 year without submitting a new
1785 application during that 1-year period.
1786 3.2. Each 90 days, or upon surrender of the certificate of
1787 exemption to the Department of Revenue, the qualified Any
1788 production company shall may submit to the department aggregate
1789 data for production-related information on employment,
1790 expenditures in this state, capital investment, and purchases of
1791 items exempted from sales and use taxes under ss. 212.031,
1792 212.06, and 212.08 for inclusion in the annual report required
1793 under subsection (5) a new application for a 90-day certificate
1794 of exemption upon the expiration of that company’s certificate
1795 of exemption.
1796 (4) DUTIES OF THE DEPARTMENT OF REVENUE.—
1797 (a) The Department of Revenue shall review the initial
1798 application and notify the applicant of any omissions and
1799 request additional information if needed. An application shall
1800 be complete upon receipt of all requested information. The
1801 Department of Revenue shall forward all complete applications to
1802 the department Office of Film and Entertainment within 10
1803 working days.
1804 (b) The Department of Revenue shall issue a numbered
1805 certificate of exemption to a qualified production company
1806 within 5 working days of the receipt of an approved application,
1807 application renewal, or application extension from the
1808 department Office of Film and Entertainment.
1809 (c) The Department of Revenue may adopt promulgate such
1810 rules and shall prescribe and publish such forms as may be
1811 necessary to effectuate the purposes of this section or any of
1812 the sales tax exemptions which are reasonably related to the
1813 provisions of this section.
1814 (d) The Department of Revenue is authorized to establish
1815 audit procedures in accordance with the provisions of ss.
1816 212.12, 212.13, and 213.34 which relate to the sales tax
1817 exemption provisions of this section.
1818 (5) RELATIONSHIP OF TAX EXEMPTIONS AND INCENTIVES TO
1819 INDUSTRY GROWTH; REPORT TO THE LEGISLATURE.—The department
1820 Office of Film and Entertainment shall keep annual records from
1821 the information provided on taxpayer applications for tax
1822 exemption certificates and regularly reported as required in
1823 this section beginning January 1, 2001. These records also must
1824 reflect a ratio of the annual amount of sales and use tax
1825 exemptions under this section, plus the tax credits incentives
1826 awarded pursuant to s. 288.1254 to the estimated amount of funds
1827 expended by certified productions. In addition, the department
1828 office shall maintain data showing annual growth in Florida
1829 based entertainment industry companies and entertainment
1830 industry employment and wages. The employment information must
1831 include an estimate of the full-time equivalent positions
1832 created by each production that received tax credits pursuant to
1833 s. 288.1254. The department Office of Film and Entertainment
1834 shall include this information in the annual report for the
1835 entertainment industry financial incentive program required
1836 under s. 288.1254(10).
1837 Section 9. Subsection (1) of section 288.92, Florida
1838 Statutes, is amended to read:
1839 288.92 Divisions of Enterprise Florida, Inc.—
1840 (1) Enterprise Florida, Inc., may create and dissolve
1841 divisions as necessary to carry out its mission. Each division
1842 shall have distinct responsibilities and complementary missions.
1843 At a minimum, Enterprise Florida, Inc., shall have divisions
1844 related to the following areas:
1845 (a) International Trade and Business Development;
1846 (b) Business Retention and Recruitment;
1847 (c) Tourism Marketing;
1848 (d) Minority Business Development; and
1849 (e) Sports Industry Development; and
1850 (f) Film and Entertainment.
1851 Section 10. Subsection (5) of section 477.0135, Florida
1852 Statutes, is amended to read:
1853 477.0135 Exemptions.—
1854 (5) A license is not required of any individual providing
1855 makeup, special effects, or cosmetology services to an actor,
1856 stunt person, musician, extra, or other talent during a
1857 production recognized by the Department of Economic Opportunity
1858 Office of Film and Entertainment as a qualified production as
1859 defined in s. 288.1254(1). Such services are not required to be
1860 performed in a licensed salon. Individuals exempt under this
1861 subsection may not provide such services to the general public.
1862 Section 11. Paragraph (q) of subsection (5) of section
1863 212.08, Florida Statutes, is amended to read:
1864 212.08 Sales, rental, use, consumption, distribution, and
1865 storage tax; specified exemptions.—The sale at retail, the
1866 rental, the use, the consumption, the distribution, and the
1867 storage to be used or consumed in this state of the following
1868 are hereby specifically exempt from the tax imposed by this
1869 chapter.
1870 (5) EXEMPTIONS; ACCOUNT OF USE.—
1871 (q) Entertainment industry tax credit; authorization;
1872 eligibility for credits.—The credits against the state sales tax
1873 authorized pursuant to s. 288.1254 shall be deducted from any
1874 sales and use tax remitted by the dealer to the department by
1875 electronic funds transfer and may only be deducted on a sales
1876 and use tax return initiated through electronic data
1877 interchange. The dealer shall separately state the credit on the
1878 electronic return. The net amount of tax due and payable must be
1879 remitted by electronic funds transfer. If the credit for the
1880 qualified expenditures is larger than the amount owed on the
1881 sales and use tax return that is eligible for the credit, the
1882 unused amount of the credit may be carried forward to a
1883 succeeding reporting period as provided in s. 288.1254(4)(d)
1884 288.1254(4)(e). A dealer may only obtain a credit using the
1885 method described in this subparagraph. A dealer is not
1886 authorized to obtain a credit by applying for a refund.
1887 Section 12. Subsection (3) of section 220.1899, Florida
1888 Statutes, is amended to read:
1889 220.1899 Entertainment industry tax credit.—
1890 (3) To the extent that the amount of a tax credit exceeds
1891 the amount due on a return, the balance of the credit may be
1892 carried forward to a succeeding taxable year pursuant to s.
1893 288.1254(4)(d) 288.1254(4)(e).
1894 Section 13. This act shall take effect October 1, 2015.