SENATE AMENDMENT
    Bill No. CS for CS for SB 2242
    Amendment No. ___   Barcode 481090
                            CHAMBER ACTION
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11  Senator Saunders moved the following amendment:
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13         Senate Amendment (with title amendment) 
14          Delete everything after the enacting clause
15  
16  and insert:  
17         Section 1.  Section 288.125, Florida Statutes, is
18  amended to read:
19         288.125  Definition of "entertainment industry".--For
20  the purposes of ss. 288.1251-288.1258 288.1253, the term
21  "entertainment industry" means those persons or entities
22  engaged in the operation of motion picture or television
23  studios or recording studios; those persons or entities
24  engaged in the preproduction, production, or post production
25  of motion pictures, made-for-TV motion pictures, television
26  series, commercial advertising, music videos, or sound
27  recordings; and those persons or entities providing products
28  or services directly related to the preproduction, production,
29  or post production of motion pictures, made-for-TV motion
30  pictures, television series, commercial advertising, music
31  videos, of sound recordings, including, but not limited to,
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    5:38 PM   03/20/02                              s2242c2c-25e0b

SENATE AMENDMENT Bill No. CS for CS for SB 2242 Amendment No. ___ Barcode 481090 1 the broadcast industry. 2 Section 2. Section 288.1254, Florida Statutes, is 3 created to read: 4 288.1254 Entertainment industry financial incentive 5 program; creation; purpose; definitions; application 6 procedure; approval process; reimbursement eligibility; 7 submission of required documentation; recommendations for 8 payment; rules; fraudulent claims. 9 (1) CREATION AND PURPOSE OF PROGRAM.--Subject to 10 specific appropriation, there is created within the Office of 11 Film and Entertainment an entertainment industry financial 12 incentive program. The purpose of this program is to encourage 13 the use of this state as a site for filming, and for providing 14 production services for, motion pictures, commercials, music 15 videos, and television programs by the entertainment industry. 16 (2) DEFINITIONS.--As used in this section, unless the 17 context requires otherwise: 18 (a) "Filmed entertainment" means a motion picture, 19 teleproduction, commercial, music video or digital media 20 effects production that shall be sold or displayed in 21 electronic media. 22 (b) "Production costs" means the total cost of 23 producing filmed entertainment minus the ordinary and 24 necessary interstate and foreign travel expenses involved in 25 the production. 26 (c) "Qualified expenditures" means goods purchased or 27 leased or services purchased, leased, or employed from a 28 resident of this state or a vendor or supplier who is located 29 and doing business in this state. 30 (d) "Qualified production" means filmed entertainment 31 in which at least 70% of the production costs are spent in 2 5:38 PM 03/20/02 s2242c2c-25e0b
SENATE AMENDMENT Bill No. CS for CS for SB 2242 Amendment No. ___ Barcode 481090 1 Florida, and in which at least 75% of the production workforce 2 are Florida residents or state domiciled entities. 3 (e) "Qualified relocation project" means a 4 corporation, limited liability company, partnership, corporate 5 headquarters or other private entity that is domiciled in 6 another state or country and relocates its operations to 7 Florida, and is organized under the laws of this or any other 8 state or country and includes as one of its primary purposes 9 digital media effects or motion picture and television 10 production, distribution, financing, or post production. 11 (3) APPLICATION PROCEDURE; APPROVAL PROCESS.-- 12 (a) Any company engaged in this state in the 13 production of filmed entertainment may submit an application 14 to the Office of Film and Entertainment for the purpose of 15 determining qualification for receipt of reimbursement 16 provided in this section. The office shall be provided 17 information required to determine if the production is a 18 qualified production and to determine the qualified 19 expenditures, production costs, and other information 20 necessary for the office to determine both eligibility for and 21 level of reimbursement. 22 (b) A digital media effects, finance, distribution, or 23 post production company in the state that furnishes services 24 or digital material to a qualified production that is 25 certified by the Office of Film and Entertainment may submit 26 an application to the Office of Film and Entertainment for the 27 purpose of determining qualification for receipt of 28 reimbursement provided in this section. The office shall be 29 provided information required to determine if the company is 30 qualified and to determine the amount of reimbursement. 31 (c) Any corporation, limited liability company, 3 5:38 PM 03/20/02 s2242c2c-25e0b
SENATE AMENDMENT Bill No. CS for CS for SB 2242 Amendment No. ___ Barcode 481090 1 partnership, corporate headquarters or other private entity 2 domiciled in another state that includes as one of its primary 3 purposes digital media effects or motion picture and 4 television production, distribution, financing, or post 5 production and which is considering relocation to Florida may 6 submit an application to the Office of Film and Entertainment 7 for the purpose of determining qualification for reimbursement 8 under this section. 9 (d)l. The Office of Film and Entertainment shall 10 establish a process by which an application shall be accepted, 11 reviewed, and reimbursement eligibility and reimbursement 12 amount determined. 13 2. Upon determination that all criteria are met for 14 qualification for reimbursement, the office shall notify the 15 applicant of such approval. The office shall also notify the 16 Office of Tourism, Trade and Economic Development of the 17 applicant approval and amount of reimbursement required. 18 3. The office shall deny an application if it 19 determines that: 20 a. The application is not complete or does not meet 21 the requirements of this section, or 22 b. The reimbursement sought does not meet the 23 requirements of this section for such reimbursement. 24 (e) The Office of Film and Entertainment shall develop 25 a standardized application form for use in approving a 26 qualified production, a qualified relocation project, or a 27 company qualifying under (3)(b). The application form shall 28 include, but not be limited to, production-related information 29 on employment, proposed total production budgets, planned 30 Florida expenditures which are intended for use exclusively as 31 an integral part of preproduction, production, or post 4 5:38 PM 03/20/02 s2242c2c-25e0b
SENATE AMENDMENT Bill No. CS for CS for SB 2242 Amendment No. ___ Barcode 481090 1 production activities engaged in primarily in this state, and 2 a signed affirmation from the Office of Film and Entertainment 3 that the information on the application form has been verified 4 and is correct. The application form shall be distributed to 5 applicants by the Office of Film and Entertainment or local 6 film commissions. 7 (4) REIMBURSEMENT ELIGIBILITY; SUBMISSION OF REQUIRED 8 DOCUMENTATION; RECOMMENDATIONS FOR PAYMENT.-- 9 (a) A qualified production which is certified by the 10 Office of Film & Entertainment shall be eligible for the 11 following financial incentives from the state: 12 1. A reimbursement of 10 percent (10%) of its 13 qualified Florida expenditures within this state on such 14 filmed entertainment which demonstrates a minimum of $1 15 million in total qualified expenditures. The maximum 16 reimbursement that may be made with respect to any single 17 motion picture is $2 million, subject to appropriation, unless 18 the total qualified expenditures exceed $50 million in which 19 case the maximum reimbursement that may be made is $2.5 20 million, subject to appropriation. The maximum reimbursement 21 that may be made with respect to any single television series 22 pilot, television series, made for television movie, music 23 video or commercial is $200,000, subject to appropriation. 24 2. Qualified expenditures for which reimbursement may 25 be made include, but are not limited to, the following: 26 salaries paid to, and benefits paid on account of employment 27 of, residents of this state, with the exception of principal 28 talent; rents for real and personal property used in the 29 production; payments to state residents or state domiciled 30 entities for preproduction, production, or post production, 31 and digital media effects services; and costs of set 5 5:38 PM 03/20/02 s2242c2c-25e0b
SENATE AMENDMENT Bill No. CS for CS for SB 2242 Amendment No. ___ Barcode 481090 1 construction. 2 (b) A digital media effects, finance, distribution, or 3 post production company in the state that furnishes services 4 or digital material to a qualified production that is 5 certified by the Office of Film and Entertainment is eligible 6 for a payment in an amount not to exceed 5 percent (5%) of its 7 gross billings. A company applying for payment shall submit 8 documentation as required by the Office of Film and 9 Entertainment for determination of eligibility of claimed 10 billing and determination of the amount of payment for which 11 the company is eligible. 12 (c) A qualified relocation project that is certified 13 by the Office of Film & Entertainment shall be eligible for a 14 one-time bonus payment in an amount equal to 5 percent (5%) of 15 its billings for the first 12 months of doing business in its 16 Florida domicile. 17 (d) A qualified production or a qualified relocation 18 project applying for a payment under this section must submit 19 documentation for claimed qualified expenditures to the Office 20 of Film and Entertainment. The applicant shall also submit to 21 the Office of Film and Entertainment a nonrefundable 22 application fee of $2,000 to offset the cost of processing the 23 application. 24 (e) The Office of Film and Entertainment shall notify 25 the Office of Tourism, Trade, and Economic Development if an 26 applicant meets the criteria for reimbursement and shall 27 recommend the reimbursement amount. 28 (5) RULES.--The Office of Tourism, Trade, and Economic 29 Development shall adopt rules pursuant to ss. 120.536(1) and 30 120.54 to implement the provisions of this section, including, 31 but not limited to, requirements for the application and 6 5:38 PM 03/20/02 s2242c2c-25e0b
SENATE AMENDMENT Bill No. CS for CS for SB 2242 Amendment No. ___ Barcode 481090 1 approval process, records required for submission for 2 substantiation for reimbursement, and determination of and 3 qualification for reimbursement. 4 (6) FRAUDULENT CLAIMS.--An eligible entity or company 5 that obtains a payment under this section through a claim that 6 it knows is fraudulent is liable for reimbursement of the 7 amount paid plus a penalty in an amount double the payment and 8 reimbursement of reasonable costs, which penalty is in 9 addition to any criminal penalty to which the entity or 10 company is liable for the same acts. The entity or company is 11 also liable for costs and fees incurred by the state in 12 investigating and prosecuting the fraudulent claim. 13 Section 3. This act shall take effect January 1, 2003. 14 15 16 ================ T I T L E A M E N D M E N T =============== 17 And the title is amended as follows: 18 Delete everything before the enacting clause 19 20 and insert: 21 An act relating to economic development; 22 amending s. 288.125, F.S.; providing that the 23 definition of "entertainment industry" extend 24 to other sections; creating s. 288.1254, F.S.; 25 creating a program under which certain 26 producers of filmed entertainment and certain 27 digital media effects, motion picture and 28 television distribution, motion picture and 29 television production, and post production 30 companies may be reimbursed for expenditures 31 made in this state; providing definitions; 7 5:38 PM 03/20/02 s2242c2c-25e0b
SENATE AMENDMENT Bill No. CS for CS for SB 2242 Amendment No. ___ Barcode 481090 1 providing an application procedure and approval 2 process; prescribing limits on reimbursement; 3 requiring documentation justifying 4 reimbursement requested; providing duties of 5 the Office of Film and Entertainment and the 6 Office of Tourism, Trade, and Economic 7 Development; providing for rules; providing 8 penalties for fraudulent claims for 9 reimbursement; providing an effective date. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 8 5:38 PM 03/20/02 s2242c2c-25e0b