Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS/CS/HB 1325, 1st Eng.
                        Barcode 373914
                            CHAMBER ACTION
              Senate                               House
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 3         Floor: 1/AD/2R          .                    
       05/02/2007 07:23 PM         .                    
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11  Senator Saunders moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         Line 59, through line 597, delete those lines
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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
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Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/CS/HB 1325, 1st Eng. Barcode 373914 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 12:57 PM 05/02/07 h1325.seg1.0ab
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/CS/HB 1325, 1st Eng. Barcode 373914 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, a pornographic production, or a local, 5 regional, or Internet-distributed-only news show, 6 current-events show, a pornographic production, or a 7 current-affairs show. A production may be produced on or by 8 film, tape, or otherwise by means of a motion picture camera, 9 electronic camera or device, tape device, computer, any 10 combination of the foregoing, or any other means, method, or 11 device now used or later adopted. 12 (f) "Production expenditures" means the costs of 13 tangible and intangible property used and services performed 14 primarily and customarily in the production, including 15 preproduction and postproduction, excluding costs for 16 development, marketing, and distribution. Production 17 expenditures include, but are not limited to: 18 1. Wages, salaries, or other compensation, including 19 amounts paid through payroll service companies, for technical 20 and production crews, directors, producers, and performers. 21 2. Expenditures for sound stages, backlots, production 22 editing, digital effects, sound recordings, sets, and set 23 construction. 24 3. Expenditures for rental equipment, including, but 25 not limited to, cameras and grip or electrical equipment. 26 4. Expenditures for meals, travel, and accommodations. 27 (g) "Qualified expenditures" means production 28 expenditures incurred in this state by a qualified production 29 for: 30 1. Goods purchased or leased from, or services 31 provided by, a vendor or supplier in this state which is 3 12:57 PM 05/02/07 h1325.seg1.0ab
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/CS/HB 1325, 1st Eng. Barcode 373914 1 registered with the Department of State or the Department of 2 Revenue and doing business in this state. 3 2. Payments to residents of this state in the form of 4 salary, wages, or other compensation up to a maximum of 5 $400,000 per resident for the general production queue and the 6 independent Florida filmmaker queue and up to a maximum of 7 $200,000 for the digital media queue. 8 9 For a qualified production involving an event, such as an 10 awards show, the term excludes expenditures solely associated 11 with the event itself and not directly required by the 12 production. The term excludes expenditures prior to 13 certification, with the exception of those incurred for a 14 commercial, a music video, or the pickup of additional 15 episodes of a television series within a single season. 16 (h) "Qualified production" means a production in this 17 state meeting the requirements of this section and the minimum 18 qualified expenditures and requirements of its appropriate 19 queue. The term excludes a production: 20 1. In which less than 50 percent of the positions that 21 make up its production cast and below-the-line production crew 22 are filled by residents of this state, whose residency is 23 demonstrated by a valid Florida driver's license or other 24 state-issued identification confirming residency, or students 25 enrolled full-time in a film-and-entertainment-related course 26 of study at an institution of higher education in this state; 27 or 28 2. That is deemed by the Office of Film and 29 Entertainment to contain obscene content as defined in s. 30 847.001(10). 31 (i) "Qualified production company" means a 4 12:57 PM 05/02/07 h1325.seg1.0ab
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/CS/HB 1325, 1st Eng. Barcode 373914 1 corporation, limited liability company, partnership, or other 2 legal entity engaged in producing a qualified production. 3 (2) CREATION AND PURPOSE OF PROGRAM.--The 4 entertainment industry financial incentive program is created 5 within the Office of Film and Entertainment. The purpose of 6 this program is to encourage the use of this state as a site 7 for filming and to develop and sustain the workforce and 8 infrastructure for film and entertainment production. 9 (3) APPLICATION PROCEDURE; APPROVAL PROCESS.-- 10 (a) A qualified production company in this state 11 producing a qualified production may submit a program 12 application to the Office of Film and Entertainment for the 13 purpose of determining certification. The applicant shall 14 provide the office with information required to determine 15 whether the production is a qualified production and to 16 determine the qualified expenditures and other information 17 necessary for the office to determine certification. 18 (b) The Office of Film and Entertainment shall develop 19 an application form for use in qualifying an applicant as a 20 qualified production. The form must include, but need not be 21 limited to, production-related information concerning 22 employment of residents in this state, a detailed budget of 23 planned qualified expenditures, and the applicant's signed 24 affirmation that the information on the form has been verified 25 and is correct. The Office of Film and Entertainment and local 26 film commissions shall distribute the form. 27 (c) The Office of Film and Entertainment shall 28 establish a process by which an application is accepted and 29 reviewed for certification. The office may request assistance 30 from a duly appointed local film commission in determining 31 compliance with this section. 5 12:57 PM 05/02/07 h1325.seg1.0ab
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/CS/HB 1325, 1st Eng. Barcode 373914 1 (d) The Office of Film and Entertainment shall review 2 the application within 10 business days after receipt. Upon 3 its determination that the application contains all the 4 information required by this subsection and meets the criteria 5 set out in this section, the office shall qualify the 6 applicant and recommend to the Office of Tourism, Trade, and 7 Economic Development that the applicant be certified for a 8 maximum amount of available funds. Within 5 business days 9 after receipt of the recommendation, the Office of Tourism, 10 Trade, and Economic Development shall reject the 11 recommendation or certify the applicant. 12 (e) The Office of Film and Entertainment shall deny an 13 application if it determines that the application is not 14 complete or the production does not meet the requirements of 15 this section. 16 (f) The Office of Film and Entertainment shall develop 17 a process to verify the actual qualified expenditures of a 18 certified production. The process must require: 19 1. A certified production to submit, in a timely 20 manner after production ends and after making all of its 21 qualified expenditures, data substantiating each qualified 22 expenditure to an independent certified public accountant 23 licensed in this state; 24 2. Such accountant to conduct an audit, at the 25 certified production's expense, to substantiate each qualified 26 expenditure and submit the results as a report, along with all 27 substantiating data, to the Office of Film and Entertainment; 28 and 29 3. The Office of Film and Entertainment to review the 30 accountant's submittal and report to the Office of Tourism, 31 Trade, and Economic Development the final verified amount of 6 12:57 PM 05/02/07 h1325.seg1.0ab
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/CS/HB 1325, 1st Eng. Barcode 373914 1 actual qualified expenditures made by the certified 2 production. 3 4. The Office of Tourism, Trade, and Economic 4 Development shall determine and approve the incentive amount 5 to each certified applicant. 6 (g) The Office of Film and Entertainment shall ensure 7 that, as a condition of receiving incentive funding under this 8 section, marketing materials promoting this state as a tourist 9 destination or film and entertainment production destination 10 are included, when appropriate, at no cost to the state, which 11 must, at a minimum, include placement in the end credits of a 12 "Filmed in Florida" logo with size and placement commensurate 13 to other logos included in the end credits or, if no logos are 14 used, the statement "Filmed in Florida using Florida's 15 Entertainment Industry Financial Incentive," or a similar 16 statement approved by the Office of Film and Entertainment 17 before such placement. The Office of Film and Entertainment 18 shall develop a "Filmed in Florida" logo and supply it for the 19 purposes specified in this paragraph. 20 (4) PRIORITY FOR INCENTIVE FUNDING; WITHDRAWAL OF 21 ELIGIBILITY; QUEUES.-- 22 (a) The priority of a qualified production for 23 incentive funding must be determined on a first-come, 24 first-served basis within its appropriate queue. Each 25 qualified production must be placed into the appropriate queue 26 and is subject to the requirements of that queue. 27 (b) GENERAL PRODUCTION QUEUE.--Eighty-five percent of 28 incentive funding appropriated in any state fiscal year must 29 be dedicated to the general production queue. A production 30 certified under this queue is eligible for a reimbursement 31 equal to 15 percent of its actual qualified expenditures. 7 12:57 PM 05/02/07 h1325.seg1.0ab
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/CS/HB 1325, 1st Eng. Barcode 373914 1 Within this queue: 2 1. A qualified production, excluding commercials, 3 music videos, and digital media projects, which demonstrates a 4 minimum of $625,000 in qualified expenditures is eligible for 5 up to a maximum of $8 million in incentive funding. A 6 qualified production spanning multiple state fiscal years may 7 combine qualified expenditures from such fiscal years to 8 satisfy the threshold. 9 2. A qualified production company that produces 10 national, international, or regional commercials, or music 11 videos may be eligible for a maximum of $500,000 in incentive 12 funding if it demonstrates a minimum of $100,000 in qualified 13 expenditures per national, international, or regional 14 commercial or music video and exceeds a combined threshold of 15 $500,000 after combining actual qualified expenditures from 16 qualified commercials and music videos during a single state 17 fiscal year. After a qualified production company that 18 produces commercials, music videos, or both reaches the 19 threshold of $500,000, it is eligible to apply for 20 certification for incentive funding. 21 3. An off-season certified production is eligible for 22 an additional 5-percent incentive funding on actual qualified 23 expenditures. An off-season certified production that does not 24 complete 75 percent of principal photography due to disruption 25 caused by a hurricane or tropical storm may not be 26 disqualified from eligibility for the additional 5-percent 27 incentive as a result of the disruption. 28 4. Each qualified production shall make a good faith 29 effort to use existing providers of infrastructure or 30 equipment in this state, including providers of camera gear, 31 grip and lighting equipment, vehicle providers, and 8 12:57 PM 05/02/07 h1325.seg1.0ab
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/CS/HB 1325, 1st Eng. Barcode 373914 1 postproduction services when available in-state. 2 5. A qualified high-impact television series shall be 3 allowed first position in this queue for incentive funding not 4 yet certified. 5 (c) INDEPENDENT FLORIDA FILMMAKER QUEUE.--Five percent 6 of incentive funding appropriated in any state fiscal year 7 must be dedicated to the independent Florida filmmaker queue. 8 A production certified under this queue is eligible for a 9 reimbursement equal to 15 percent of its actual qualified 10 expenditures. An independent Florida film that meets the 11 criteria of this queue and demonstrates a minimum of $100,000, 12 but not more than $625,000, in total qualified expenditures is 13 eligible for incentive funding. To qualify for this queue, a 14 qualified production must: 15 1. Be planned as a feature film or documentary of no 16 less than 70 minutes in length. 17 2. Provide evidence of 50 percent of the financing for 18 its total budget in an escrow account or other form dedicated 19 to the production. 20 3. Do all major postproduction in this state. 21 4. Employ Florida workers in at least six of the 22 following key positions: writer, director, producer, director 23 of photography, star or one of the lead actors, unit 24 production manager, editor, or production designer. As used in 25 this subparagraph, the term "Florida worker" means a person 26 who has been a resident of this state for at least 1 year 27 before a production's application under subsection (3) was 28 submitted or a person who graduated from a film school, 29 college, university, or community college in this state no 30 more than 5 years before such submittal or who is enrolled 31 full-time in such a school, college, or university. 9 12:57 PM 05/02/07 h1325.seg1.0ab
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/CS/HB 1325, 1st Eng. Barcode 373914 1 (d) DIGITAL MEDIA PRODUCTS QUEUE.--Ten percent of 2 incentive funding appropriated in any state fiscal year shall 3 be dedicated to the digital media projects queue. A production 4 certified under this queue is eligible for a reimbursement 5 equal to 10 percent if its actual qualified expenditures. A 6 qualified production that is a digital media project that 7 demonstrates a minimum of $300,000 in total qualified 8 expenditures is eligible for a maximum of $1 million in 9 incentive funding. As used in this paragraph, the term 10 "qualified expenditures" means the wages or salaries paid to a 11 resident of this state for working on a single qualified 12 digital media project, up to a maximum of $200,000 in wages or 13 salaries paid per resident. A qualified production company 14 producing digital media projects may not qualify for more than 15 three projects in any 1 fiscal year. Projects that extend 16 beyond a fiscal year must reapply each fiscal year in order to 17 be eligible for incentive funding for that year. 18 (e) Each qualified production or certified production 19 shall continue on a reasonable schedule, which means beginning 20 principal photography in this state no more than 45 calendar 21 days before or after the date provided in the program's 22 application under subsection (3). The Office of Tourism, 23 Trade, and Economic Development shall withdraw the eligibility 24 of a qualified production or a certified production for 25 incentive funding if any such production does not continue on 26 a reasonable schedule. 27 (f) A certified production determined by the 28 Commissioner of Film and Entertainment, with the advice of the 29 Florida Film and Entertainment Advisory Council, to be family 30 friendly based on the review of the script and an interview 31 with the director is eligible for an additional reimbursement 10 12:57 PM 05/02/07 h1325.seg1.0ab
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/CS/HB 1325, 1st Eng. Barcode 373914 1 equal to 2 percent of its actual qualified expenditures. 2 Family friendly productions are those that have 3 cross-generational appeal; would be considered suitable for 4 viewing by children age 5 and older; are appropriate in theme, 5 content, and language for a broad family audience; embody a 6 responsible resolution of issues; and do not exhibit any act 7 of smoking, sex, nudity, or vulgar or profane language. 8 (5) RULES, POLICIES, AND PROCEDURES.--The Office of 9 Tourism, Trade, and Economic Development may adopt rules under 10 ss. 120.536(1) and 120.54 and develop policies and procedures 11 to administer this section, including, but not limited to, 12 rules specifying requirements for the application and approval 13 process. 14 (6) ANNUAL REPORT.--Each October 1, the Office of Film 15 and Entertainment shall provide an annual report for the 16 previous fiscal year to the Governor, the President of the 17 Senate, and the Speaker of the House of Representatives which 18 outlines the return on investment and economic benefits to the 19 state. 20 (7) FRAUD.--Any applicant that submits information 21 under this section that includes fraudulent information is 22 liable for reimbursement of the reasonable costs and fees 23 associated with the review, processing, investigation, and 24 prosecution of the fraudulent claim. An applicant that obtains 25 an incentive payment under this section through a claim that 26 is fraudulent is liable for reimbursement of the incentive 27 payment plus a penalty in an amount double the incentive 28 payment. The penalty is in addition to any criminal penalty to 29 which the applicant is liable for the same acts. The applicant 30 is also liable for costs and fees incurred by the state in 31 investigating and prosecuting the fraudulent claim. 11 12:57 PM 05/02/07 h1325.seg1.0ab
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS/CS/HB 1325, 1st Eng. Barcode 373914 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 12:57 PM 05/02/07 h1325.seg1.0ab