Senate Bill sb2242c2

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    Florida Senate - 2002                    CS for CS for SB 2242

    By the Committees on Governmental Oversight and Productivity;
    Commerce and Economic Opportunities; and Senators Saunders and
    Crist



    302-2235-02

  1                      A bill to be entitled

  2         An act relating to economic development;

  3         creating s. 288.1254, F.S.; creating a program

  4         under which certain producers of motion

  5         pictures, television programs, and commercials

  6         and certain digital effects companies shall be

  7         reimbursed for expenditures made in this state;

  8         providing a purpose and legislative findings

  9         for such program; prescribing limits on

10         reimbursement; providing duties of the Office

11         of Tourism, Trade, and Economic Development and

12         the Office of Film and Entertainment; providing

13         for rules; providing penalties for fraudulent

14         claims for reimbursement; providing an

15         appropriation; providing an effective date.

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17  Be It Enacted by the Legislature of the State of Florida:

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19         Section 1.  Section 288.1254, Florida Statutes, is

20  created to read:

21         288.1254  Entertainment industry financial incentive

22  program; creation.--There is created within the Office of

23  Tourism, Trade, and Economic Development an entertainment

24  industry financial incentive program. The purpose of this

25  program is to encourage the use of this state as a site for

26  filming and for providing production services for motion

27  pictures and television programs by the entertainment

28  industry, as defined in s. 288.125. The Legislature finds that

29  a public purpose of promoting the economic development of the

30  state is served by the provision of incentives under this

31  section.

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    Florida Senate - 2002                    CS for CS for SB 2242
    302-2235-02




  1         (1)  Entities wholly or substantially producing motion

  2  pictures or television programs and companies providing

  3  digital effects to those entities are eligible for the

  4  following financial incentives from the state:

  5         (a)  An entity that makes expenditures in this state

  6  for the total or partial production of a motion picture,

  7  made-for-television movie with a running time of 90 minutes or

  8  more, television program, or commercial shall receive a

  9  reimbursement of 10 percent of its qualifying expenditures

10  within this state on that motion picture, movie, television

11  program, or commercial that demonstrates a minimum of $1

12  million in total qualified expenditures. However, the maximum

13  reimbursement that may be made with respect to a motion

14  picture is $2 million, the maximum reimbursement that may be

15  made with respect to a made-for-television movie with a

16  running time of 90 minutes or more is $150,000, the maximum

17  reimbursement that may be made with respect to any other

18  television program is $50,000, and the maximum reimbursement

19  that may be made with respect to a commercial is $25,000. For

20  the purposes of this section, each individual episode of a

21  television series constitutes a separate television program.

22  Expenditures for which reimbursement shall be made include

23  salaries paid to and employment benefits paid on behalf of

24  state residents; rents for real and personal property used in

25  the production; payments to state residents or state-domiciled

26  entities for preproduction, production, or postproduction

27  services; and costs of set construction. No reimbursement

28  shall be authorized for salaries of the two highest-paid

29  actors. Salaries of other actors are reimbursable.

30         (b)  A digital effects company in this state which

31  furnishes services or digital material to an entity producing

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    Florida Senate - 2002                    CS for CS for SB 2242
    302-2235-02




  1  motion pictures or television programs in Florida is eligible

  2  for a payment in an amount equal to 5 percent of its gross

  3  billings, less sales tax.

  4         (c)  If a digital effects company is domiciled in

  5  another state or country and relocates to this state, that

  6  company is eligible for a one-time bonus payment in an amount

  7  equal to one-half of the total of 5 percent of its billings

  8  for the 12 months immediately preceding its relocation to

  9  Florida plus 5 percent of its billings for the first 12 months

10  in its Florida domicile.

11         (2)  An entity or company applying for a payment under

12  this section must submit documentation for claimed

13  expenditures to the Office of Film and Entertainment, which

14  shall review the application. The Office of Film and

15  Entertainment shall recommend to the Office of Tourism, Trade,

16  and Economic Development whether the applicant meets the

17  criteria for a payment and recommend the amount of the

18  payment. Payments under this section in a fiscal year shall be

19  made on a first-come, first-served basis, until the

20  appropriation for that fiscal year is exhausted.

21         (3)  The Office of Tourism, Trade, and Economic

22  Development shall adopt policies and procedures necessary to

23  implement this section.

24         (4)  An eligible entity or company that obtains a

25  payment under this section through a claim that it knows is

26  fraudulent is liable for reimbursement of the amount paid plus

27  a penalty in an amount double the payment, which penalty is in

28  addition to any criminal penalty to which the entity or

29  company is liable for the same acts. The entity or company is

30  also liable for costs incurred by the state in investigating

31  the fraudulent claim.

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    Florida Senate - 2002                    CS for CS for SB 2242
    302-2235-02




  1         Section 2.  The sum of $10 million is appropriated from

  2  the General Revenue Fund to the Office of Tourism, Trade, and

  3  Economic Development to implement this act in the 2002-2003

  4  fiscal year. The Office of Tourism, Trade, and Economic

  5  Development may use up to $50,000 for staff and administrative

  6  costs to implement this act.

  7         Section 3.  This act shall take effect July 1, 2002.

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  9          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
10                     CS for Senate Bill 2242

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12  The Committee Substitute permits reimbursement of salaries
    except for the two highest paid actors, makes specific the
13  rule promulgation authority by reference to ch. 120, F.S., and
    gives OTTED the authority to use up to $50,000 of the $10
14  million appropriation for administrative services.

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