Senate Bill sb0012E

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    Florida Senate - 2002                                  SB 12-E

    By Senator Saunders





    25-2359-02

  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, music videos,

  6         and commercials and certain digital-effects

  7         companies may be reimbursed for expenditures

  8         made in this state; providing a purpose and

  9         legislative findings for such program;

10         prescribing limits on reimbursement; providing

11         duties of the Office of Tourism, Trade, and

12         Economic Development and the Office of Film and

13         Entertainment; providing for rules; providing

14         penalties for fraudulent claims for

15         reimbursement; providing for construction of

16         the act in pari materia with laws enacted at

17         the Regular Session of the Legislature;

18         providing an effective date.

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

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22         Section 1.  Section 288.1254, Florida Statutes, is

23  created to read:

24         288.1254  Entertainment industry financial incentive

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

26  Tourism, Trade, and Economic Development an entertainment

27  industry financial incentive program. The purpose of this

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

29  filming and for providing production services for motion

30  pictures and television programs by the entertainment

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

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    Florida Senate - 2002                                  SB 12-E
    25-2359-02




  1  a public purpose of promoting the economic development of the

  2  state is served by the provision of incentives under this

  3  section.

  4         (1)  Entities wholly or substantially producing motion

  5  pictures or television programs and companies providing

  6  digital effects to those entities are eligible for the

  7  following financial incentives from the state:

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

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

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

11  more, television program, music video, or commercial shall

12  receive a reimbursement of 10 percent of its qualifying

13  expenditures within this state on that motion picture, movie,

14  television program, or commercial that demonstrates a minimum

15  of $1 million in total qualified expenditures. However, the

16  maximum reimbursement that may be made with respect to a

17  motion picture is $2 million, the maximum reimbursement that

18  may be made with respect to a made-for-television movie with a

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

20  reimbursement that may be made with respect to any other

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

22  that may be made with respect to a music video or commercial

23  is $25,000. For the purposes of this section, each individual

24  episode of a television series constitutes a separate

25  television program. Expenditures for which reimbursement will

26  be made include salaries paid to and employment benefits paid

27  on behalf of state residents; rent for real and personal

28  property used in the production; payments to state residents

29  or state-domiciled entities for preproduction, production, or

30  postproduction services; and costs of set construction. No

31  reimbursement is authorized for salaries of the two

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    Florida Senate - 2002                                  SB 12-E
    25-2359-02




  1  highest-paid actors. Salaries of other actors are

  2  reimbursable.

  3         (b)  A digital-effects company in this state which

  4  furnishes services or digital material to an entity producing

  5  motion pictures or television programs in Florida is eligible

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

  7  billings, less sales tax.

  8         (c)  If a digital-effects company is domiciled in

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

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

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

12  for the 12 months immediately preceding its relocation to

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

14  in its Florida domicile, to be paid upon the conclusion of the

15  first 12 months of Florida domicile.

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

17  this section must submit documentation for claimed

18  expenditures to the Office of Film and Entertainment, which

19  shall review the application. The Office of Film and

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

21  and Economic Development whether the applicant meets the

22  criteria for a payment and recommend the amount of the

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

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

25  appropriation for that fiscal year is exhausted.

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

27  Development shall adopt policies and procedures necessary to

28  administer this section.

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

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

31  fraudulent is liable for reimbursement of the amount paid plus

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    Florida Senate - 2002                                  SB 12-E
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  1  a penalty in an amount double the payment, which penalty is in

  2  addition to any criminal penalty to which the entity or

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

  4  also liable for costs incurred by the state in investigating

  5  the fraudulent claim.

  6         Section 2.  If any law that is amended by this act was

  7  also amended by a law enacted at the 2002 Regular Session of

  8  the Legislature, such laws shall be construed as if they had

  9  been enacted at the same session of the Legislature, and full

10  effect should be given to each if that is possible.

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

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14                          SENATE SUMMARY

15    Creates a program under which certain producers of motion
      pictures, television programs, music videos, and
16    commercials and certain digital-effects companies may be
      reimbursed for expenditures made in this state.
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