Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS/CS/HB 1325, 1st Eng.
                        Barcode 245728
                            CHAMBER ACTION
              Senate                               House
                                   .                    
                                   .                    
 1                                 .                    
                                   .                    
 2                                 .                    
                                   .                    
 3         Floor: 1/RE/2R          .                    
       05/02/2007 07:23 PM         .                    
 4  ______________________________________________________________
 5  
 6  
 7  
 8  
 9  
10  ______________________________________________________________
11  Senator Saunders moved the following amendment:
12  
13         Senate Amendment (with title amendment) 
14         Line 59, through line 597, delete those lines
15  
16  and insert:  
17         Section 1.  This act may be cited as the "Don Davis
18  Entertainment Industry Economic Development Act."
19         Section 2.  Section 288.1254, Florida Statutes, is
20  amended to read:
21         (Substantial rewording of section. See
22         s. 288.1254, F.S., for present text.)
23         288.1254  Entertainment industry financial incentive
24  program.--
25         (1)  DEFINITIONS.--As used in this section, the term:
26         (a)  "Certified production" means a qualified
27  production that has incentive funds allocated to it by the
28  Office of Tourism, Trade, and Economic Development based on
29  its estimated qualified expenditures. The term excludes a
30  production if its first day of principal photography in this
31  state occurred before the production is certified by the
                                  1
    4:34 PM   05/01/07                              h1325.37cm.0ab
    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS/CS/HB 1325, 1st Eng.
                        Barcode 245728
 1  Office of Tourism, Trade, and Economic Development, unless the
 2  production spans more than 1 fiscal year, was a certified
 3  production on the first day of such photography, and is
 4  required to submit an application for continuing the same
 5  production in the subsequent year.
 6         (b)  "Digital media project" means a production of
 7  interactive entertainment which is produced for distribution
 8  in commercial or educational markets, including a video game,
 9  simulation, or animation, or a production intended for
10  Internet or wireless distribution. The term excludes a
11  production deemed by the Office of Film and Entertainment to
12  contain obscene content as defined in s. 847.001(10).
13         (c)  "High-impact television series" means a production
14  created to run multiple production seasons having an estimated
15  order of at least seven episodes per season and qualified
16  expenditures of at least $625,000 per episode.
17         (d)  "Off-season certified production" means a
18  production, other than a digital media project or an animated
19  production, which films 75 percent or more of its principal
20  photography days from June 1 through November 30.
21         (e)  "Production" means a theatrical or direct-to-video
22  motion picture, a made-for-television motion picture, a
23  commercial, a music video, an industrial or educational film,
24  an infomercial, a documentary film, a television pilot
25  program, a presentation for a television pilot program, a
26  television series, including, but not limited to, a drama, a
27  reality show, a comedy, a soap opera, a telenovela, a game
28  show, a miniseries production, or a digital media project by
29  the entertainment industry. One season of a television series
30  is considered one production. The term excludes a weather or
31  market program, a sporting event, a sports show, a gala, a
                                  2
    4:34 PM   05/01/07                              h1325.37cm.0ab
    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS/CS/HB 1325, 1st Eng.
                        Barcode 245728
 1  production that solicits funds, a home shopping program, a
 2  political program, a political documentary, political
 3  advertising, a gambling-related project or production, a
 4  concert production, or a local, regional, or
 5  Internet-distributed-only news show, current-events show, or a
 6  current-affairs show. A production may be produced on or by
 7  film, tape, or otherwise by means of a motion picture camera,
 8  electronic camera or device, tape device, computer, any
 9  combination of the foregoing, or any other means, method, or
10  device now used or later adopted.
11         (f)  "Production expenditures" means the costs of
12  tangible and intangible property used and services performed
13  primarily and customarily in the production, including
14  preproduction and postproduction, excluding costs for
15  development, marketing, and distribution. Production
16  expenditures include, but are not limited to:
17         1.  Wages, salaries, or other compensation, including
18  amounts paid through payroll service companies, for technical
19  and production crews, directors, producers, and performers.
20         2.  Expenditures for sound stages, backlots, production
21  editing, digital effects, sound recordings, sets, and set
22  construction.
23         3.  Expenditures for rental equipment, including, but
24  not limited to, cameras and grip or electrical equipment.
25         4.  Expenditures for meals, travel, and accommodations.
26         (g)  "Qualified expenditures" means production
27  expenditures incurred in this state by a qualified production
28  for:
29         1.  Goods purchased or leased from, or services
30  provided by, a vendor or supplier in this state which is
31  registered with the Department of State or the Department of
                                  3
    4:34 PM   05/01/07                              h1325.37cm.0ab
    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS/CS/HB 1325, 1st Eng.
                        Barcode 245728
 1  Revenue and doing business in this state.
 2         2.  Payments to residents of this state in the form of
 3  salary, wages, or other compensation up to a maximum of
 4  $400,000 per resident for the general production queue and the
 5  independent Florida filmmaker queue and up to a maximum of
 6  $200,000 for the digital media queue.
 7  
 8  For a qualified production involving an event, such as an
 9  awards show, the term excludes expenditures solely associated
10  with the event itself and not directly required by the
11  production. The term excludes expenditures prior to
12  certification, with the exception of those incurred for a
13  commercial, a music video, or the pickup of additional
14  episodes of a television series within a single season.
15         (h)  "Qualified production" means a production in this
16  state meeting the requirements of this section and the minimum
17  qualified expenditures and requirements of its appropriate
18  queue. The term excludes a production:
19         1.  In which less than 50 percent of the positions that
20  make up its production cast and below-the-line production crew
21  are filled by residents of this state, whose residency is
22  demonstrated by a valid Florida driver's license or other
23  state-issued identification confirming residency, or students
24  enrolled full-time in a film-and-entertainment-related course
25  of study at an institution of higher education in this state;
26  or
27         2.  That is deemed by the Office of Film and
28  Entertainment to contain obscene content as defined in s.
29  847.001(10).
30         (i)  "Qualified production company" means a
31  corporation, limited liability company, partnership, or other
                                  4
    4:34 PM   05/01/07                              h1325.37cm.0ab
    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS/CS/HB 1325, 1st Eng.
                        Barcode 245728
 1  legal entity engaged in producing a qualified production.
 2         (2)  CREATION AND PURPOSE OF PROGRAM.--The
 3  entertainment industry financial incentive program is created
 4  within the Office of Film and Entertainment. The purpose of
 5  this program is to encourage the use of this state as a site
 6  for filming and to develop and sustain the workforce and
 7  infrastructure for film and entertainment production.
 8         (3)  APPLICATION PROCEDURE; APPROVAL PROCESS.--
 9         (a)  A qualified production company in this state
10  producing a qualified production may submit a program
11  application to the Office of Film and Entertainment for the
12  purpose of determining certification. The applicant shall
13  provide the office with information required to determine
14  whether the production is a qualified production and to
15  determine the qualified expenditures and other information
16  necessary for the office to determine certification.
17         (b)  The Office of Film and Entertainment shall develop
18  an application form for use in qualifying an applicant as a
19  qualified production. The form must include, but need not be
20  limited to, production-related information concerning
21  employment of residents in this state, a detailed budget of
22  planned qualified expenditures, and the applicant's signed
23  affirmation that the information on the form has been verified
24  and is correct. The Office of Film and Entertainment and local
25  film commissions shall distribute the form.
26         (c)  The Office of Film and Entertainment shall
27  establish a process by which an application is accepted and
28  reviewed for certification. The office may request assistance
29  from a duly appointed local film commission in determining
30  compliance with this section.
31         (d)  The Office of Film and Entertainment shall review
                                  5
    4:34 PM   05/01/07                              h1325.37cm.0ab
    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS/CS/HB 1325, 1st Eng.
                        Barcode 245728
 1  the application within 10 business days after receipt. Upon
 2  its determination that the application contains all the
 3  information required by this subsection and meets the criteria
 4  set out in this section, the office shall qualify the
 5  applicant and recommend to the Office of Tourism, Trade, and
 6  Economic Development that the applicant be certified for a
 7  maximum amount of available funds. Within 5 business days
 8  after receipt of the recommendation, the Office of Tourism,
 9  Trade, and Economic Development shall reject the
10  recommendation or certify the applicant.
11         (e)  The Office of Film and Entertainment shall deny an
12  application if it determines that the application is not
13  complete or the production does not meet the requirements of
14  this section.
15         (f)  The Office of Film and Entertainment shall develop
16  a process to verify the actual qualified expenditures of a
17  certified production. The process must require:
18         1.  A certified production to submit, in a timely
19  manner after production ends and after making all of its
20  qualified expenditures, data substantiating each qualified
21  expenditure to an independent certified public accountant
22  licensed in this state;
23         2.  Such accountant to conduct an audit, at the
24  certified production's expense, to substantiate each qualified
25  expenditure and submit the results as a report, along with all
26  substantiating data, to the Office of Film and Entertainment;
27  and
28         3.  The Office of Film and Entertainment to review the
29  accountant's submittal and report to the Office of Tourism,
30  Trade, and Economic Development the final verified amount of
31  actual qualified expenditures made by the certified
                                  6
    4:34 PM   05/01/07                              h1325.37cm.0ab
    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS/CS/HB 1325, 1st Eng.
                        Barcode 245728
 1  production.
 2         4.  The Office of Tourism, Trade, and Economic
 3  Development shall determine and approve the incentive amount
 4  to each certified applicant.
 5         (g)  The Office of Film and Entertainment shall ensure
 6  that, as a condition of receiving incentive funding under this
 7  section, marketing materials promoting this state as a tourist
 8  destination or film and entertainment production destination
 9  are included, when appropriate, at no cost to the state, which
10  must, at a minimum, include placement in the end credits of a
11  "Filmed in Florida" logo with size and placement commensurate
12  to other logos included in the end credits or, if no logos are
13  used, the statement "Filmed in Florida using Florida's
14  Entertainment Industry Financial Incentive," or a similar
15  statement approved by the Office of Film and Entertainment
16  before such placement. The Office of Film and Entertainment
17  shall develop a "Filmed in Florida" logo and supply it for the
18  purposes specified in this paragraph.
19         (4)  PRIORITY FOR INCENTIVE FUNDING; WITHDRAWAL OF
20  ELIGIBILITY; QUEUES.--
21         (a)  The priority of a qualified production for
22  incentive funding must be determined on a first-come,
23  first-served basis within its appropriate queue. Each
24  qualified production must be placed into the appropriate queue
25  and is subject to the requirements of that queue.
26         (b)  GENERAL PRODUCTION QUEUE.--Eighty-five percent of
27  incentive funding appropriated in any state fiscal year must
28  be dedicated to the general production queue. A production
29  certified under this queue is eligible for a reimbursement
30  equal to 15 percent of its actual qualified expenditures.
31  Within this queue:
                                  7
    4:34 PM   05/01/07                              h1325.37cm.0ab
    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS/CS/HB 1325, 1st Eng.
                        Barcode 245728
 1         1.  A qualified production, excluding commercials,
 2  music videos, and digital media projects, which demonstrates a
 3  minimum of $625,000 in qualified expenditures is eligible for
 4  up to a maximum of $8 million in incentive funding. A
 5  qualified production spanning multiple state fiscal years may
 6  combine qualified expenditures from such fiscal years to
 7  satisfy the threshold.
 8         2.  A qualified production company that produces
 9  national, international, or regional commercials, or music
10  videos may be eligible for a maximum of $500,000 in incentive
11  funding if it demonstrates a minimum of $100,000 in qualified
12  expenditures per national, international, or regional
13  commercial or music video and exceeds a combined threshold of
14  $500,000 after combining actual qualified expenditures from
15  qualified commercials and music videos during a single state
16  fiscal year. After a qualified production company that
17  produces commercials, music videos, or both reaches the
18  threshold of $500,000, it is eligible to apply for
19  certification for incentive funding.
20         3.  An off-season certified production is eligible for
21  an additional 5-percent incentive funding on actual qualified
22  expenditures. An off-season certified production that does not
23  complete 75 percent of principal photography due to disruption
24  caused by a hurricane or tropical storm may not be
25  disqualified from eligibility for the additional 5-percent
26  incentive as a result of the disruption.
27         4.  Each qualified production shall make a good faith
28  effort to use existing providers of infrastructure or
29  equipment in this state, including providers of camera gear,
30  grip and lighting equipment, vehicle providers, and
31  postproduction services when available in-state.
                                  8
    4:34 PM   05/01/07                              h1325.37cm.0ab
    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS/CS/HB 1325, 1st Eng.
                        Barcode 245728
 1         5.  A qualified high-impact television series shall be
 2  allowed first position in this queue for incentive funding not
 3  yet certified.
 4         (c)  INDEPENDENT FLORIDA FILMMAKER QUEUE.--Five percent
 5  of incentive funding appropriated in any state fiscal year
 6  must be dedicated to the independent Florida filmmaker queue.
 7  A production certified under this queue is eligible for a
 8  reimbursement equal to 15 percent of its actual qualified
 9  expenditures. An independent Florida film that meets the
10  criteria of this queue and demonstrates a minimum of $100,000,
11  but not more than $625,000, in total qualified expenditures is
12  eligible for incentive funding. To qualify for this queue, a
13  qualified production must:
14         1.  Be planned as a feature film or documentary of no
15  less than 70 minutes in length.
16         2.  Provide evidence of 50 percent of the financing for
17  its total budget in an escrow account or other form dedicated
18  to the production.
19         3.  Do all major postproduction in this state.
20         4.  Employ Florida workers in at least six of the
21  following key positions: writer, director, producer, director
22  of photography, star or one of the lead actors, unit
23  production manager, editor, or production designer. As used in
24  this subparagraph, the term "Florida worker" means a person
25  who has been a resident of this state for at least 1 year
26  before  a production's application under subsection (3) was
27  submitted or a person who graduated from a film school,
28  college, university, or community college in this state no
29  more than 5 years before such submittal or who is enrolled
30  full-time in such a school, college, or university.
31         (d)  DIGITAL MEDIA PRODUCTS QUEUE.--Ten percent of
                                  9
    4:34 PM   05/01/07                              h1325.37cm.0ab
    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS/CS/HB 1325, 1st Eng.
                        Barcode 245728
 1  incentive funding appropriated in any state fiscal year shall
 2  be dedicated to the digital media projects queue. A production
 3  certified under this queue is eligible for a reimbursement
 4  equal to 10 percent if its actual qualified expenditures. A
 5  qualified production that is a digital media project that
 6  demonstrates a minimum of $300,000 in total qualified
 7  expenditures is eligible for a maximum of $1 million in
 8  incentive funding. As used in this paragraph, the term
 9  "qualified expenditures" means the wages or salaries paid to a
10  resident of this state for working on a single qualified
11  digital media project, up to a maximum of $200,000 in wages or
12  salaries paid per resident. A qualified production company
13  producing digital media projects may not qualify for more than
14  three projects in any 1 fiscal year. Projects that extend
15  beyond a fiscal year must reapply each fiscal year in order to
16  be eligible for incentive funding for that year.
17         (e)  Each qualified production or certified production
18  shall continue on a reasonable schedule, which means beginning
19  principal photography in this state no more than 45 calendar
20  days before or after the date provided in the program's
21  application under subsection (3). The Office of Tourism,
22  Trade, and Economic Development shall withdraw the eligibility
23  of a qualified production or a certified production for
24  incentive funding if any such production does not continue on
25  a reasonable schedule.
26         (f)  A certified production determined by the
27  Commissioner of Film and Entertainment, with the advice of the
28  Florida Film and Entertainment Advisory Council, to be family
29  friendly based on the review of the script and an interview
30  with the director is eligible for an additional reimbursement
31  equal to 2 percent of its actual qualified expenditures.
                                  10
    4:34 PM   05/01/07                              h1325.37cm.0ab
    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS/CS/HB 1325, 1st Eng.
                        Barcode 245728
 1  Family friendly productions are those that have
 2  cross-generational appeal; would be considered suitable for
 3  viewing by children age 5 and older; are appropriate in theme,
 4  content, and language for a broad family audience; embody a
 5  responsible resolution of issues; and do not exhibit any act
 6  of smoking, sex, nudity, or vulgar or profane language.
 7         (5)  RULES, POLICIES, AND PROCEDURES.--The Office of
 8  Tourism, Trade, and Economic Development may adopt rules under
 9  ss. 120.536(1) and 120.54 and develop policies and procedures
10  to administer this section, including, but not limited to,
11  rules specifying requirements for the application and approval
12  process.
13         (6)  ANNUAL REPORT.--Each October 1, the Office of Film
14  and Entertainment shall provide an annual report for the
15  previous fiscal year to the Governor, the President of the
16  Senate, and the Speaker of the House of Representatives which
17  outlines the return on investment and economic benefits to the
18  state.
19         (7)  FRAUD.--Any applicant that submits information
20  under this section that includes fraudulent information is
21  liable for reimbursement of the reasonable costs and fees
22  associated with the review, processing, investigation, and
23  prosecution of the fraudulent claim. An applicant that obtains
24  an incentive payment under this section through a claim that
25  is fraudulent is liable for reimbursement of the incentive
26  payment plus a penalty in an amount double the incentive
27  payment. The penalty is in addition to any criminal penalty to
28  which the applicant is liable for the same acts. The applicant
29  is also liable for costs and fees incurred by the state in
30  investigating and prosecuting the fraudulent claim.
31  
                                  11
    4:34 PM   05/01/07                              h1325.37cm.0ab
    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS/CS/HB 1325, 1st Eng.
                        Barcode 245728
 1  ================ T I T L E   A M E N D M E N T ===============
 2  And the title is amended as follows:
 3         Line 2, through line 39, delete those lines
 4  
 5  and insert:
 6         An act relating to the entertainment industry;
 7         amending s. 288.1254, F.S.; revising the
 8         entertainment industry financial incentive
 9         program; providing purpose of the program;
10         providing for submittal and approval of an
11         application under the program; providing for
12         review by the Office of Film and Entertainment
13         and the Office of Tourism, Trade, and Economic
14         Development; providing standards for review;
15         providing for verification of which
16         expenditures concerning an entertainment
17         production qualify for incentive funding under
18         the program; requiring inclusion of marketing
19         materials promoting this state as a condition
20         of receiving incentive funding; establishing
21         queues; specifying requirements concerning each
22         queue; authorizing the Office of Tourism,
23         Trade, and Economic Development to adopt rules,
24         policies, and procedures; requiring an annual
25         report to the Governor and the Legislature;
26         creating a penalty for fraudulent applications
27         and claims;
28  
29  
30  
31  
                                  12
    4:34 PM   05/01/07                              h1325.37cm.0ab