CS/CS/HB 1325

1	A bill to be entitled
2	An act relating to the entertainment industry; amending s.
3	288.1254, F.S.; revising the entertainment industry
4	financial incentive program; providing purpose of the
5	program; providing for submittal and approval of an
6	application under the program; providing for review by the
7	Office of Film and Entertainment and the Office of
8	Tourism, Trade, and Economic Development; providing
9	standards for review; providing for verification of which
10	expenditures concerning an entertainment production
11	qualify for incentive funding under the program; requiring
12	inclusion of marketing materials promoting this state as a
13	condition of receiving incentive funding; establishing
14	queues; specifying requirements concerning each queue;
15	authorizing the Office of Tourism, Trade, and Economic
16	Development to adopt rules, policies, and procedures;
17	requiring an annual report to the Governor and the
18	Legislature; creating a penalty for fraudulent
19	applications and claims; providing an appropriation;
20	repealing s. 288.1255, F.S., relating to obsolete
21	provisions for an annual appropriation; providing for
22	severability; providing an effective date.
23
24	Be It Enacted by the Legislature of the State of Florida:
25
26	Section 1.  This act may be cited as the "Don Davis
27	Entertainment Industry Economic Development Act."
28	Section 2.  Section 288.1254, Florida Statutes, is amended
29	to read:
30	(Substantial rewording of section. See
31	s. 288.1254, F.S., for present text.)
32	288.1254  Entertainment industry financial incentive
33	program.--
34	(1)  DEFINITIONS.--As used in this section, the term:
35	(a)  "Certified production" means a qualified production
36	that has incentive funds allocated to it by the Office of
37	Tourism, Trade, and Economic Development based on its estimated
38	qualified expenditures. The term excludes a production if its
39	first day of principal photography in this state occurred before
40	the production is certified by the Office of Tourism, Trade, and
41	Economic Development, unless the production spans more than 1
42	fiscal year, was a certified production on the first day of such
43	photography, and is required to submit an application for
44	continuing the same production in the subsequent year.
45	(b)  "Digital media project" means a production of
46	interactive entertainment which is produced for distribution in
47	commercial or educational markets, including a video game,
48	simulation, or animation, or a production intended for Internet
49	or wireless distribution. The term excludes a production deemed
50	by the Office of Film and Entertainment to contain obscene
51	content as defined in s. 847.001(10).
52	(c)  "High-impact television series" means a production
53	created to run multiple production seasons having an estimated
54	order of at least seven episodes per season and qualified
55	expenditures of at least $625,000 per episode.
56	(d)  "Off-season certified production" means a production,
57	other than a digital media project or an animated production,
58	which films 75 percent or more of its principal photography days
59	from June 1 through November 30.
60	(e)  "Production" means a theatrical or direct-to-video
61	motion picture, a made-for-television motion picture, a
62	commercial, a music video, an industrial or educational film, an
63	infomercial, a documentary film, a television pilot program, a
64	presentation for a television pilot program, a television
65	series, including, but not limited to, a drama, a reality show,
66	a comedy, a soap opera, a telenovela, a game show, a miniseries
67	production, or a digital media project by the entertainment
68	industry. One season of a television series is considered one
69	production. The term excludes a weather or market program, a
70	sporting event, a sports show, a gala, a production that
71	solicits funds, a home shopping program, a political program, a
72	political documentary, political advertising, a gambling-related
73	project or production, a concert production, a pornographic
74	production, or a local, regional, or Internet-distributed-only
75	news show, current-events show, a pornographic production, or a
76	current-affairs show. A production may be produced on or by
77	film, tape, or otherwise by means of a motion picture camera,
78	electronic camera or device, tape device, computer, any
79	combination of the foregoing, or any other means, method, or
80	device now used or later adopted.
81	(f)  "Production expenditures" means the costs of tangible
82	and intangible property used and services performed primarily
83	and customarily in the production, including preproduction and
84	postproduction, excluding costs for development, marketing, and
85	distribution. Production expenditures include, but are not
86	limited to:
87	1.  Wages, salaries, or other compensation, including
88	amounts paid through payroll service companies, for technical
89	and production crews, directors, producers, and performers.
90	2.  Expenditures for sound stages, backlots, production
91	editing, digital effects, sound recordings, sets, and set
92	construction.
93	3.  Expenditures for rental equipment, including, but not
94	limited to, cameras and grip or electrical equipment.
95	4.  Expenditures for meals, travel, and accommodations.
96	(g)  "Qualified expenditures" means production expenditures
97	incurred in this state by a qualified production for:
98	1.  Goods purchased or leased from, or services provided
99	by, a vendor or supplier in this state which is registered with
100	the Department of State or the Department of Revenue and doing
101	business in this state.
102	2.  Payments to residents of this state in the form of
103	salary, wages, or other compensation up to a maximum of $400,000
104	per resident for the general production queue and the
105	independent Florida filmmaker queue and up to a maximum of
106	$200,000 for the digital media queue.
107
108	For a qualified production involving an event, such as an awards
109	show, the term excludes expenditures solely associated with the
110	event itself and not directly required by the production. The
111	term excludes expenditures prior to certification, with the
112	exception of those incurred for a commercial, a music video, or
113	the pickup of additional episodes of a television series within
114	a single season.
115	(h)  "Qualified production" means a production in this
116	state meeting the requirements of this section and the minimum
117	qualified expenditures and requirements of its appropriate
118	queue. The term excludes a production:
119	1.  In which less than 50 percent of the positions that
120	make up its production cast and below-the-line production crew
121	are filled by residents of this state, whose residency is
122	demonstrated by a valid Florida driver's license or other state-
123	issued identification confirming residency, or students enrolled
124	full-time in a film-and-entertainment-related course of study at
125	an institution of higher education in this state; or
126	2.  That is deemed by the Office of Film and Entertainment
127	to contain obscene content as defined in s. 847.001(10).
128	(i)  "Qualified production company" means a corporation,
129	limited liability company, partnership, or other legal entity
130	engaged in producing a qualified production.
131	(2)  CREATION AND PURPOSE OF PROGRAM.--The entertainment
132	industry financial incentive program is created within the
133	Office of Film and Entertainment. The purpose of this program is
134	to encourage the use of this state as a site for filming and to
135	develop and sustain the workforce and infrastructure for film
136	and entertainment production.
137	(3)  APPLICATION PROCEDURE; APPROVAL PROCESS.--
138	(a)  A qualified production company in this state producing
139	a qualified production may submit a program application to the
140	Office of Film and Entertainment for the purpose of determining
141	certification. The applicant shall provide the office with
142	information required to determine whether the production is a
143	qualified production and to determine the qualified expenditures
144	and other information necessary for the office to determine
145	certification.
146	(b)  The Office of Film and Entertainment shall develop an
147	application form for use in qualifying an applicant as a
148	qualified production. The form must include, but need not be
149	limited to, production-related information concerning employment
150	of residents in this state, a detailed budget of planned
151	qualified expenditures, and the applicant's signed affirmation
152	that the information on the form has been verified and is
153	correct. The Office of Film and Entertainment and local film
154	commissions shall distribute the form.
155	(c)  The Office of Film and Entertainment shall establish a
156	process by which an application is accepted and reviewed for
157	certification. The office may request assistance from a duly
158	appointed local film commission in determining compliance with
159	this section.
160	(d)  The Office of Film and Entertainment shall review the
161	application within 10 business days after receipt. Upon its
162	determination that the application contains all the information
163	required by this subsection and meets the criteria set out in
164	this section, the office shall qualify the applicant and
165	recommend to the Office of Tourism, Trade, and Economic
166	Development that the applicant be certified for a maximum amount
167	of available funds. Within 5 business days after receipt of the
168	recommendation, the Office of Tourism, Trade, and Economic
169	Development shall reject the recommendation or certify the
170	applicant.
171	(e)  The Office of Film and Entertainment shall deny an
172	application if it determines that the application is not
173	complete or the production does not meet the requirements of
174	this section.
175	(f)  The Office of Film and Entertainment shall develop a
176	process to verify the actual qualified expenditures of a
177	certified production. The process must require:
178	1.  A certified production to submit, in a timely manner
179	after production ends and after making all of its qualified
180	expenditures, data substantiating each qualified expenditure to
181	an independent certified public accountant licensed in this
182	state;
183	2.  Such accountant to conduct an audit, at the certified
184	production's expense, to substantiate each qualified expenditure
185	and submit the results as a report, along with all
186	substantiating data, to the Office of Film and Entertainment;
187	and
188	3.  The Office of Film and Entertainment to review the
189	accountant's submittal and report to the Office of Tourism,
190	Trade, and Economic Development the final verified amount of
191	actual qualified expenditures made by the certified production.
192	4.  The Office of Tourism, Trade, and Economic Development
193	shall determine and approve the incentive amount to each
194	certified applicant.
195	(g)  The Office of Film and Entertainment shall ensure
196	that, as a condition of receiving incentive funding under this
197	section, marketing materials promoting this state as a tourist
198	destination or film and entertainment production destination are
199	included, when appropriate, at no cost to the state, which must,
200	at a minimum, include placement in the end credits of a "Filmed
201	in Florida" logo with size and placement commensurate to other
202	logos included in the end credits or, if no logos are used, the
203	statement "Filmed in Florida using Florida's Entertainment
204	Industry Financial Incentive," or a similar statement approved
205	by the Office of Film and Entertainment before such placement.
206	The Office of Film and Entertainment shall develop a "Filmed in
207	Florida" logo and supply it for the purposes specified in this
208	paragraph.
209	(4)  PRIORITY FOR INCENTIVE FUNDING; WITHDRAWAL OF
210	ELIGIBILITY; QUEUES.--
211	(a)  The priority of a qualified production for incentive
212	funding must be determined on a first-come, first-served basis
213	within its appropriate queue. Each qualified production must be
214	placed into the appropriate queue and is subject to the
215	requirements of that queue.
216	(b)  GENERAL PRODUCTION QUEUE.-Eighty-five percent of
217	incentive funding appropriated in any state fiscal year must be
218	dedicated to the general production queue. A production
219	certified under this queue is eligible for a reimbursement equal
220	to 15 percent of its actual qualified expenditures. Within this
221	queue:
222	1.  A qualified production, excluding commercials, music
223	videos, and digital media projects, which demonstrates a minimum
224	of $625,000 in qualified expenditures is eligible for up to a
225	maximum of $8 million in incentive funding. A qualified
226	production spanning multiple state fiscal years may combine
227	qualified expenditures from such fiscal years to satisfy the
228	threshold.
229	2.  A qualified production company that produces national,
230	international, or regional commercials, or music videos may be
231	eligible for a maximum of $500,000 in incentive funding if it
232	demonstrates a minimum of $100,000 in qualified expenditures per
233	national, international, or regional commercial or music video
234	and exceeds a combined threshold of $500,000 after combining
235	actual qualified expenditures from qualified commercials and
236	music videos during a single state fiscal year. After a
237	qualified production company that produces commercials, music
238	videos, or both reaches the threshold of $500,000, it is
239	eligible to apply for certification for incentive funding.
240	3.  An off-season certified production is eligible for an
241	additional 5-percent incentive funding on actual qualified
242	expenditures. An off-season certified production that does not
243	complete 75 percent of principal photography due to disruption
244	caused by a hurricane or tropical storm may not be disqualified
245	from eligibility for the additional 5-percent incentive as a
246	result of the disruption.
247	4.  Each qualified production shall make a good faith
248	effort to use existing providers of infrastructure or equipment
249	in this state, including providers of camera gear, grip and
250	lighting equipment, vehicle providers, and postproduction
251	services when available in-state.
252	5.  A qualified high-impact television series shall be
253	allowed first position in this queue for incentive funding not
254	yet certified.
255	(c)  INDEPENDENT FLORIDA FILMMAKER QUEUE.--Five percent of
256	incentive funding appropriated in any state fiscal year must be
257	dedicated to the independent Florida filmmaker queue. A
258	production certified under this queue is eligible for a
259	reimbursement equal to 15 percent of its actual qualified
260	expenditures. An independent Florida film that meets the
261	criteria of this queue and demonstrates a minimum of $100,000,
262	but not more than $625,000, in total qualified expenditures is
263	eligible for incentive funding. To qualify for this queue, a
264	qualified production must:
265	1.  Be planned as a feature film or documentary of no less
266	than 70 minutes in length.
267	2.  Provide evidence of 50 percent of the financing for its
268	total budget in an escrow account or other form dedicated to the
269	production.
270	3.  Do all major postproduction in this state.
271	4.  Employ Florida workers in at least six of the following
272	key positions: writer, director, producer, director of
273	photography, star or one of the lead actors, unit production
274	manager, editor, or production designer. As used in this
275	subparagraph, the term "Florida worker" means a person who has
276	been a resident of this state for at least 1 year before  a
277	production's application under subsection (3) was submitted or a
278	person who graduated from a film school, college, university, or
279	community college in this state no more than 5 years before such
280	submittal or who is enrolled full-time in such a school,
281	college, or university.
282	(d)  DIGITAL MEDIA PRODUCTS QUEUE.--Ten percent of
283	incentive funding appropriated in any state fiscal year shall be
284	dedicated to the digital media projects queue. A production
285	certified under this queue is eligible for a reimbursement equal
286	to 10 percent if its actual qualified expenditures. A qualified
287	production that is a digital media project that demonstrates a
288	minimum of $300,000 in total qualified expenditures is eligible
289	for a maximum of $1 million in incentive funding. As used in
290	this paragraph, the term "qualified expenditures" means the
291	wages or salaries paid to a resident of this state for working
292	on a single qualified digital media project, up to a maximum of
293	$200,000 in wages or salaries paid per resident. A qualified
294	production company producing digital media projects may not
295	qualify for more than three projects in any 1 fiscal year.
296	Projects that extend beyond a fiscal year must reapply each
297	fiscal year in order to be eligible for incentive funding for
298	that year.
299	(e)  Each qualified production or certified production
300	shall continue on a reasonable schedule, which means beginning
301	principal photography in this state no more than 45 calendar
302	days before or after the date provided in the program's
303	application under subsection (3). The Office of Tourism, Trade,
304	and Economic Development shall withdraw the eligibility of a
305	qualified production or a certified production for incentive
306	funding if any such production does not continue on a reasonable
307	schedule.
308	(f)  A certified production determined by the Commissioner
309	of Film and Entertainment, with the advice of the Florida Film
310	and Entertainment Advisory Council, to be family friendly based
311	on the review of the script and an interview with the director
312	is eligible for an additional reimbursement equal to 2 percent
313	of its actual qualified expenditures. Family friendly
314	productions are those that have cross-generational appeal; would
315	be considered suitable for viewing by children age 5 and older;
316	are appropriate in theme, content, and language for a broad
317	family audience; embody a responsible resolution of issues; and
318	do not exhibit any act of smoking, sex, nudity, or vulgar or
319	profane language.
320	(5)  RULES, POLICIES, AND PROCEDURES.--The Office of
321	Tourism, Trade, and Economic Development may adopt rules under
322	ss. 120.536(1) and 120.54 and develop policies and procedures to
323	administer this section, including, but not limited to, rules
324	specifying requirements for the application and approval
325	process.
326	(6)  ANNUAL REPORT.--Each October 1, the Office of Film and
327	Entertainment shall provide an annual report for the previous
328	fiscal year to the Governor, the President of the Senate, and
329	the Speaker of the House of Representatives which outlines the
330	return on investment and economic benefits to the state.
331	(7)  FRAUD.--Any applicant that submits information under
332	this section that includes fraudulent information is liable for
333	reimbursement of the reasonable costs and fees associated with
334	the review, processing, investigation, and prosecution of the
335	fraudulent claim. An applicant that obtains an incentive payment
336	under this section through a claim that is fraudulent is liable
337	for reimbursement of the incentive payment plus a penalty in an
338	amount double the incentive payment. The penalty is in addition
339	to any criminal penalty to which the applicant is liable for the
340	same acts. The applicant is also liable for costs and fees
341	incurred by the state in investigating and prosecuting the
342	fraudulent claim.
343	Section 3.  For the 2007-2008 fiscal year, the sum of $25
344	million is appropriated from the General Revenue Fund on a
345	nonrecurring basis to the Office of Tourism, Trade, and Economic
346	Development for the Office of Film and Entertainment for
347	purposes of implementing s. 288.1254, Florida Statutes.
348	Notwithstanding s. 216.301, Florida Statutes, to the contrary,
349	the unexpended balance of this appropriation shall not revert
350	until June 30, 2009.
351	Section 4.  Section 288.1255, Florida Statutes, is
352	repealed.
353	Section 5.  If any provision of this act or the application
354	thereof to any person or circumstance is held invalid, the
355	invalidity shall not affect other provisions or applications of
356	the act which can be given effect without the invalid provision
357	or application, and to this end the provisions of this act are
358	declared severable.
359	Section 6.  This act shall take effect July 1, 2007.

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