HB 1129

1	A bill to be entitled
2	An act relating to economic development; amending s.
3	288.125, F.S.; changing the term "television series" to
4	"television programming" for purposes of the definition of
5	the term "entertainment industry" in provisions
6	establishing the Office of Film and Entertainment within
7	the Office of Tourism, Trade, and Economic Development;
8	amending s. 288.1254, F.S.; revising a program under which
9	certain persons producing, or providing services for the
10	production of, filmed entertainment are eligible for state
11	financial incentives for activities in or relocated to
12	this state; revising definitions; revising application
13	procedures and requirements; revising application approval
14	provisions; deleting a provision that requires a digital-
15	media-effects company to be certified by the Office of
16	Film and Entertainment in order to submit an application
17	for qualification for receipt of reimbursement; revising
18	reimbursement eligibility criteria and requirements;
19	revising limits on reimbursement; revising the due date
20	for the annual report to be submitted to the Governor and
21	the Legislature; providing an effective date.
22
23	Be It Enacted by the Legislature of the State of Florida:
24
25	Section 1.  Section 288.125, Florida Statutes, is amended
26	to read:
27	288.125  Definition of "entertainment industry".--For the
28	purposes of ss. 288.1251-288.1258, the term "entertainment
29	industry" means those persons or entities engaged in the
30	operation of motion picture or television studios or recording
31	studios; those persons or entities engaged in the preproduction,
32	production, or postproduction of motion pictures, made-for-
33	television movies made-for-TV motion pictures, television
34	programming series, commercial advertising, music videos, or
35	sound recordings; and those persons or entities providing
36	products or services directly related to the preproduction,
37	production, or postproduction of motion pictures, made-for-
38	television movies made-for-TV  motion pictures, television
39	programming series, commercial advertising, music videos, or
40	sound recordings, including, but not limited to, the broadcast
41	industry.
42	Section 2.  Subsections (1), (2), (3), (4), and (7) of
43	section 288.1254, Florida Statutes, are amended to read:
44	288.1254  Entertainment industry financial incentive
45	program; creation; purpose; definitions; application procedure;
46	approval process; reimbursement eligibility; submission of
47	required documentation; recommendations for payment; policies
48	and procedures; fraudulent claims.--
49	(1)  CREATION AND PURPOSE OF PROGRAM.--Subject to specific
50	appropriation, there is created within the Office of Film and
51	Entertainment an entertainment industry financial incentive
52	program. The purpose of this program is to encourage the use of
53	this state as a site for filming, and for providing production
54	services for filmed entertainment, motion pictures, made-for-
55	television movies, commercials, music videos, industrial and
56	educational films, and television programs by the entertainment
57	industry.
58	(2)  DEFINITIONS.--As used in this section, the term:
59	(a)  "Filmed entertainment" means a theatrical or
60	direct-to-video motion picture, made-for-television motion
61	picture teleproduction, commercial, music video, industrial or
62	educational film, promotional video or film, documentary film,
63	or television program or series, including, but not limited to,
64	drama, reality, comedy, soap, telenovella, game show, and
65	miniseries, or digital-media-effects production by the
66	entertainment industry to be sold or displayed in an electronic
67	medium. As used in this paragraph, the term "motion picture"
68	means and includes, and has always meant and included, a motion
69	picture made on or by film, tape, or otherwise and produced by
70	means of a motion picture camera, electronic camera or device,
71	tape device, any combination of the foregoing, or any other
72	means, method, or device now used or which may hereafter be
73	adopted. As used in this paragraph, the term "digital-media-
74	effects" means visual elements created through the modification
75	of already existing or newly created visual elements for film,
76	video, or animated media through the use of digital 2D/3D
77	animation or painting, motion capture, or compositing
78	technologies. For purposes of this section, the term "filmed
79	entertainment" does not include the electronic gaming industry
80	or sporting events.
81	(b)  "Production costs" means the costs of real, tangible,
82	and intangible property used and services performed in the
83	production, including preproduction and postproduction, of
84	qualified filmed entertainment. Production costs generally
85	include, but are not limited to:
86	1.  Wages, salaries, or other compensation for technical
87	and production crews, directors, producers, and performers who
88	are residents of this state.
89	2.  Expenditures for sound stages, backlots, production
90	editing, digital effects, sound recordings, sets, and set
91	construction.
92	3.  Expenditures for rental equipment, including, but not
93	limited to, cameras and grip or electrical equipment.
94	4.  Expenditures for meals, travel, accommodations, and
95	goods used in producing filmed entertainment that is located and
96	doing business in this state total cost of producing filmed
97	entertainment.
98	(c)  "Qualified expenditures" means production costs for
99	goods purchased or leased or services purchased, leased, or
100	employed from a resident of this state or a vendor or supplier
101	who is located and doing business in this state, but excluding
102	wages, salaries, or other compensation paid to the two highest-
103	paid employees.
104	(d)  "Qualified production" means filmed entertainment that
105	makes expenditures in this state for the total or partial
106	production of filmed entertainment a motion picture, made-for-
107	television movie with a running time of 90 minutes or more,
108	commercial, music video, industrial and educational film,
109	television series pilot, or television episode. Productions that
110	are deemed by the Office of Film and Entertainment to contain
111	obscene content, as defined by the United States Supreme Court,
112	are shall not be considered qualified productions. Also,
113	productions already planned for shooting in this state, which
114	are determined by the first day of principal photography in this
115	state as having started at the time of submitting their
116	application to the Office of Film and Entertainment within that
117	same fiscal year in this state, are not qualified productions.
118	(e)  "Qualified relocation project" means a corporation,
119	limited liability company, partnership, corporate headquarters,
120	or other private entity that is domiciled in another state or
121	country and relocates its operations to this state, is organized
122	under the laws of this or any other state or country, and
123	includes as one of its primary purposes digital-media-effects or
124	motion picture and television production, or postproduction.
125	(3)  APPLICATION PROCEDURE; APPROVAL PROCESS.--
126	(a)  Any company engaged in this state in producing filmed
127	entertainment may submit an application to the Office of Film
128	and Entertainment for the purpose of determining qualification
129	for receipt of reimbursement provided in this section. The
130	office must be provided information required to determine if the
131	production is a qualified production and to determine the
132	qualified expenditures, production costs, and other information
133	necessary for the office to determine both eligibility for and
134	level of reimbursement.
135	(b)  A digital-media-effects company in the state which
136	furnishes digital material to a qualified production that is
137	certified by the Office of Film and Entertainment may submit an
138	application to the Office of Film and Entertainment for the
139	purpose of determining qualification for receipt of
140	reimbursement authorized by this section. The office must be
141	provided information required to determine if the company is
142	qualified and to determine the amount of reimbursement.
143	(c)  Any corporation, limited liability company,
144	partnership, corporate headquarters, or other private entity
145	domiciled in another state which includes as one of its primary
146	purposes digital-media-effects or motion picture and television
147	production and which is considering relocation to this state may
148	submit an application to the Office of Film and Entertainment
149	for the purpose of determining qualification for reimbursement
150	under this section.
151	(d)1.  The Office of Film and Entertainment shall establish
152	a process by which an application is accepted and reviewed and
153	reimbursement eligibility and reimbursement amount are
154	determined. The Office of Film and Entertainment may request
155	assistance from a duly appointed local film commission in
156	determining qualifications for reimbursement and compliance.
157	2.  The Office of Film and Entertainment shall develop a
158	standardized application form for use in approving a qualified
159	production, a qualified relocation project, or a company
160	qualifying under paragraph (a), paragraph (b), or paragraph (c).
161	The application form must include, but need not be limited to,
162	production-related information on employment, proposed total
163	production budgets, planned expenditures in this state which are
164	intended for use exclusively as an integral part of
165	preproduction, production, or postproduction activities engaged
166	primarily in this state, and a signed affirmation from the
167	Office of Film and Entertainment that the information on the
168	application form has been verified and is correct. The
169	application form shall be distributed to applicants by the
170	Office of Film and Entertainment or local film commissions.
171	3.  The Office of Film and Entertainment must complete its
172	review of each application within 5 days after receipt of the
173	completed application, including all required information, and
174	it must notify the applicant of its determination within 10
175	business days after receipt of the completed application and
176	required information.
177	4.2.  Upon determination that all criteria are met for
178	qualification for reimbursement, the Office of Film and
179	Entertainment shall notify the applicant of such approval. The
180	office shall also notify the Office of Tourism, Trade, and
181	Economic Development of the applicant approval and amount of
182	reimbursement required. The Office of Tourism, Trade, and
183	Economic Development shall make final determination for actual
184	reimbursement.
185	5.3.  The Office of Film and Entertainment shall deny an
186	application if it determines that:
187	a.  The application is not complete or does not meet the
188	requirements of this section; or
189	b.  The reimbursement sought does not meet the requirements
190	of this section for such reimbursement.
191	(e)  The Office of Film and Entertainment shall develop a
192	standardized application form for use in approving a qualified
193	production, a qualified relocation project, or a company
194	qualifying under paragraph (b). The application form must
195	include, but is not limited to, production-related information
196	on employment, proposed total production budgets, planned
197	expenditures in this state which are intended for use
198	exclusively as an integral part of preproduction, production, or
199	postproduction activities engaged in primarily in this state,
200	and a signed affirmation from the Office of Film and
201	Entertainment that the information on the application form has
202	been verified and is correct. The application form shall be
203	distributed to applicants by the Office of Film and
204	Entertainment or local film commissions.
205	(f)  The Office of Film and Entertainment must complete its
206	review of each application within 5 days after receipt of the
207	completed application, including all required information, and
208	it must notify the applicant of its determination within 10
209	business days after receipt of the completed application and
210	required information.
211	(4)  REIMBURSEMENT ELIGIBILITY; SUBMISSION OF REQUIRED
212	DOCUMENTATION; RECOMMENDATIONS FOR PAYMENT.--
213	(a)  A qualified production that is certified by the Office
214	of Film and Entertainment is eligible for the following
215	financial incentives from the state:
216	1.  a reimbursement of up to 15 percent of its qualifying
217	expenditures in this state on a filmed entertainment program
218	that motion picture, made-for-television movie with a running
219	time of 90 minutes or more, commercial, music video, industrial
220	film, educational film, television series pilot, or television
221	episode that demonstrates a minimum of $850,000 in total
222	qualified expenditures for the entire run of the project, versus
223	the budget on a single episode, within the fiscal year from July
224	1 to June 30. However, the maximum reimbursement that may be
225	made with respect to any filmed entertainment program a motion
226	picture is $2 million, the maximum reimbursement that may be
227	made with respect to a made-for-television movie or television
228	series pilot with a running time of 90 minutes or more is
229	$450,000, the maximum reimbursement that may be made with
230	respect to any single television series pilot or television
231	episode is $150,000, the maximum reimbursement that may be made
232	with respect to a music video or commercial is $25,000, and the
233	maximum reimbursement that may be made with respect to an
234	industrial film or an educational film is $15,000. All noted
235	reimbursements under this section are subject to appropriation.
236	Payments under this section in a fiscal year shall be made to
237	approved projects according to a project's principal photography
238	start date, for those projects having entered into the motion
239	picture queue or the long-form television queue within the first
240	2 weeks after the queue's opening. All other projects entering
241	into either queue after the initial 2-week openings shall be on
242	a first-come, first-served basis until the appropriation for
243	that fiscal year is exhausted, except that until February 1 of
244	each year, the remaining funds within both queues shall be
245	combined into a single queue and distributed based on a
246	project's principal photography start date. Subject to
247	subsequent appropriations, The eligibility of qualified
248	productions may not shall carry over from year to year but such
249	productions may reapply for eligibility under the guidelines
250	established for doing so. The Office of Film and Entertainment
251	shall develop a procedure to ensure that qualified productions
252	continue on a reasonable schedule until completion. If a
253	qualified production is not continued according to a reasonable
254	schedule, the office shall withdraw its eligibility and
255	reallocate the funds to the next other qualified productions
256	already in the queue that have yet to receive their full maximum
257	or 15-percent financial reimbursement, if they have not started
258	principal photography by the time the funds become available.
259	1.  Theatrical or direct-to-video motion pictures, made-
260	for-television movies, commercials, music videos, industrial and
261	educational films, promotional videos or films, documentary
262	films, television specials, and digital-media-effects
263	productions by the entertainment industry to be sold or
264	displayed in an electronic medium shall have their own separate
265	queue established, and such queue shall have dedicated to it 60
266	percent of all of the state incentive money.
267	2.  Long-form television programs or series, including, but
268	not limited to, drama, reality, comedy, soap, telenovella, game
269	show, or miniseries productions by the entertainment industry to
270	be sold or displayed in an electronic medium shall have their
271	own separate queue established, and such queue shall have
272	dedicated to it 40 percent of all of the state incentive money.
273	Qualified expenditures for which reimbursement shall be made
274	include salaries and employment benefits paid for services
275	rendered in this state; rents for real and personal property
276	used in the production; payments for preproduction, production,
277	postproduction, and digital-media-effects services rendered in
278	this state; and cost of set construction. Reimbursement may not
279	be authorized for salaries of the two highest-paid actors.
280	Salaries of other actors are reimbursable.
281	(b)  A digital-media-effects company in the state which
282	furnishes digital material to a qualified production that is
283	certified by the Office of Film and Entertainment may be
284	eligible for a payment in an amount not to exceed 5 percent of
285	its annual gross revenues on qualified expenditures as defined
286	listed in paragraph (2)(c) subparagraph(a)2. before taxes or
287	$100,000, whichever is less. A company applying for payment must
288	submit documentation annually as required by the Office of Film
289	and Entertainment for determination of eligibility of claimed
290	billing and determination of the amount of payment for which the
291	company is eligible.
292	(c)  A qualified relocation project that is certified by
293	the Office of Film and Entertainment is eligible for a one-time
294	incentive payment in an amount equal to 5 percent of its annual
295	gross revenues before taxes for the first 12 months of
296	conducting business in its Florida domicile or $200,000,
297	whichever is less. A company applying for payment must submit
298	documentation as required by the Office of Film and
299	Entertainment for determination of eligibility of claimed
300	billing and determination of the amount of payment for which the
301	company is eligible.
302	(d)  A qualified production, a digital-media-effects
303	company, or a qualified relocation project applying for a
304	payment under this section must submit documentation for claimed
305	qualified expenditures to the Office of Film and Entertainment.
306	(e)  The Office of Film and Entertainment shall notify the
307	Office of Tourism, Trade, and Economic Development whether an
308	applicant meets the criteria for reimbursement and shall
309	recommend the reimbursement amount. The Office of Tourism,
310	Trade, and Economic Development shall make the final
311	determination for actual reimbursement.
312	(7)  ANNUAL REPORT.--The Office of Film and Entertainment
313	shall provide an annual report for the previous fiscal year, due
314	October January 1, to the Governor, the President of the Senate,
315	and the Speaker of the House of Representatives outlining the
316	return on investment to the state on funds expended pursuant to
317	this section.
318	Section 3.  This act shall take effect July 1, 2005.

CODING: Words stricken are deletions; words underlined are additions.