Florida Senate - 2014         (PROPOSED COMMITTEE BILL) SPB 7056
       
       
        
       FOR CONSIDERATION By the Committee on Commerce and Tourism
       
       
       
       
       
       577-01603C-14                                         20147056__
    1                        A bill to be entitled                      
    2         An act relating to the entertainment industry;
    3         amending s. 288.125, F.S.; specifying the application
    4         of the term “entertainment industry”; transferring,
    5         renumbering, and amending s. 288.1251, F.S.; renaming
    6         the Office of Film and Entertainment within the
    7         Department of Economic Opportunity as the Division of
    8         Film and Entertainment and housing the division within
    9         Enterprise Florida, Inc.; requiring Enterprise
   10         Florida, Inc., to conduct a national search for a film
   11         commissioner; requiring the president of Enterprise
   12         Florida, Inc., to hire the film commissioner; revising
   13         the requirements of the division’s 5-year plan;
   14         authorizing the board of directors of Enterprise
   15         Florida, Inc., to establish a council to serve as an
   16         advisory body to the division for matters relating to
   17         the entertainment industry; conforming provisions to
   18         changes made by the act; repealing s. 288.1252, F.S.,
   19         relating to the Florida Film and Entertainment
   20         Advisory Council and its creation, purpose,
   21         membership, powers, and duties; transferring,
   22         renumbering, and amending s. 288.1253, F.S.;
   23         conforming provisions to changes made by the act;
   24         amending s. 288.1254, F.S.; redefining and deleting
   25         terms; requiring the department, rather than the
   26         Office of Film and Entertainment, to be responsible
   27         for applications for the entertainment industry
   28         financial incentive program; revising provisions
   29         relating to the application process, tax credit
   30         eligibility, election and distribution of tax credits,
   31         annual allocation of tax credits, forfeiture of tax
   32         credits, and annual report; extending the repeal date;
   33         conforming provisions to changes made by the act;
   34         specifying a date on which the applications on file
   35         with the department and not yet certified are deemed
   36         denied; amending s. 288.1258, F.S.; conforming
   37         provisions to changes made by the act; requiring the
   38         department to develop a standardized application form
   39         in cooperation with the division and other agencies;
   40         amending s. 288.92, F.S.; requiring Enterprise
   41         Florida, Inc., to have a division relating to film and
   42         entertainment; amending ss. 212.08, 220.13, 220.1899,
   43         and 477.0135, F.S.; conforming cross-references and
   44         provisions to changes made by the act; providing an
   45         effective date.
   46          
   47  Be It Enacted by the Legislature of the State of Florida:
   48  
   49         Section 1. Section 288.125, Florida Statutes, is amended to
   50  read:
   51         288.125 Definition of “entertainment industry”.—For the
   52  purposes of ss. 288.1254, 288.1258, 288.924, and 288.9241 ss.
   53  288.1251-288.1258, the term “entertainment industry” means those
   54  persons or entities engaged in the operation of motion picture
   55  or television studios or recording studios; those persons or
   56  entities engaged in the preproduction, production, or
   57  postproduction of motion pictures, made-for-television movies,
   58  television programming, digital media projects, commercial
   59  advertising, music videos, or sound recordings; and those
   60  persons or entities providing products or services directly
   61  related to the preproduction, production, or postproduction of
   62  motion pictures, made-for-television movies, television
   63  programming, digital media projects, commercial advertising,
   64  music videos, or sound recordings, including, but not limited
   65  to, the broadcast industry.
   66         Section 2. Section 288.1251, Florida Statutes, is
   67  transferred, renumbered as section 288.924, Florida Statutes,
   68  and amended to read:
   69         288.924 288.1251 Promotion and development of entertainment
   70  industry; Division Office of Film and Entertainment; creation;
   71  purpose; powers and duties.—
   72         (1) CREATION.—
   73         (a)The Division of Film and Entertainment is There is
   74  hereby created within Enterprise Florida, Inc., the department
   75  the Office of Film and Entertainment for the purpose of
   76  developing, marketing, promoting, and providing services to the
   77  state’s entertainment industry. The division shall serve as a
   78  liaison between the entertainment industry and other state and
   79  local governmental agencies, local film commissions, and labor
   80  organizations.
   81         (2)(b)COMMISSIONER.—Enterprise Florida, Inc., The
   82  department shall conduct a national search for a qualified
   83  person to fill the position of Commissioner of Film and
   84  Entertainment when the position is vacant. The president of
   85  Enterprise Florida, Inc., executive director of the department
   86  has the responsibility to hire the film commissioner.
   87  Qualifications for the film commissioner include, but are not
   88  limited to, the following:
   89         (a)1. A working knowledge of the equipment, personnel,
   90  financial, and day-to-day production operations of the
   91  industries to be served by the division Office of Film and
   92  Entertainment;
   93         (b)2. Marketing and promotion experience related to the
   94  film and entertainment industries to be served;
   95         (c)3. Experience working with a variety of individuals
   96  representing large and small entertainment-related businesses,
   97  industry associations, local community entertainment industry
   98  liaisons, and labor organizations; and
   99         (d)4. Experience working with a variety of state and local
  100  governmental agencies.
  101         (3)(2) POWERS AND DUTIES.—
  102         (a) The Division Office of Film and Entertainment, in
  103  performance of its duties, shall develop and:
  104         1. In consultation with the Florida Film and Entertainment
  105  Advisory Council, update a 5-year the strategic plan every 5
  106  years to guide the activities of the division Office of Film and
  107  Entertainment in the areas of entertainment industry
  108  development, marketing, promotion, liaison services, field
  109  office administration, and information. The plan shall:
  110         a. be annual in construction and ongoing in nature.
  111         1. At a minimum, the plan must discuss the following:
  112         a.b.Include recommendations relating to The organizational
  113  structure of the division, including any field offices outside
  114  the state.
  115         b. The coordination of the division with local or regional
  116  offices maintained by counties and regions of the state, local
  117  film commissions, and labor organizations, and the coordination
  118  of such entities with each other to facilitate a working
  119  relationship office.
  120         c.Strategies to identify, solicit, and recruit
  121  entertainment production opportunities for the state, including
  122  implementation of programs for rural and urban areas designed to
  123  develop and promote the state’s entertainment industry.
  124         d.c.Include An annual budget projection for the division
  125  office for each year of the plan.
  126         d. Include an operational model for the office to use in
  127  implementing programs for rural and urban areas designed to:
  128         (I) develop and promote the state’s entertainment industry.
  129         (II) Have the office serve as a liaison between the
  130  entertainment industry and other state and local governmental
  131  agencies, local film commissions, and labor organizations.
  132         (III) Gather statistical information related to the state’s
  133  entertainment industry.
  134         e.(IV)Provision of Provide information and service to
  135  businesses, communities, organizations, and individuals engaged
  136  in entertainment industry activities.
  137         (V) Administer field offices outside the state and
  138  coordinate with regional offices maintained by counties and
  139  regions of the state, as described in sub-sub-subparagraph (II),
  140  as necessary.
  141         f.e.Include Performance standards and measurable outcomes
  142  for the programs to be implemented by the division office.
  143         2. The plan shall be annually reviewed and approved by the
  144  board of directors of Enterprise Florida, Inc.
  145         f. Include an assessment of, and make recommendations on,
  146  the feasibility of creating an alternative public-private
  147  partnership for the purpose of contracting with such a
  148  partnership for the administration of the state’s entertainment
  149  industry promotion, development, marketing, and service
  150  programs.
  151         2. Develop, market, and facilitate a working relationship
  152  between state agencies and local governments in cooperation with
  153  local film commission offices for out-of-state and indigenous
  154  entertainment industry production entities.
  155         3. Implement a structured methodology prescribed for
  156  coordinating activities of local offices with each other and the
  157  commissioner’s office.
  158         (b) The division shall also:
  159         1.4. Represent the state’s indigenous entertainment
  160  industry to key decisionmakers within the national and
  161  international entertainment industry, and to state and local
  162  officials.
  163         2.5. Prepare an inventory and analysis of the state’s
  164  entertainment industry, including, but not limited to,
  165  information on crew, related businesses, support services, job
  166  creation, talent, and economic impact and coordinate with local
  167  offices to develop an information tool for common use.
  168         6. Identify, solicit, and recruit entertainment production
  169  opportunities for the state.
  170         3.7. Assist rural communities and other small communities
  171  in the state in developing the expertise and capacity necessary
  172  for such communities to develop, market, promote, and provide
  173  services to the state’s entertainment industry.
  174         (c)(b) The division Office of Film and Entertainment, in
  175  the performance of its duties, may:
  176         1. Conduct or contract for specific promotion and marketing
  177  functions, including, but not limited to, production of a
  178  statewide directory, production and maintenance of an Internet
  179  website, establishment and maintenance of a toll-free telephone
  180  number, organization of trade show participation, and
  181  appropriate cooperative marketing opportunities.
  182         2. Conduct its affairs, carry on its operations, establish
  183  offices, and exercise the powers granted by this act in any
  184  state, territory, district, or possession of the United States.
  185         3. Carry out any program of information, special events, or
  186  publicity designed to attract entertainment industry to Florida.
  187         4. Develop relationships and leverage resources with other
  188  public and private organizations or groups in their efforts to
  189  publicize to the entertainment industry in this state, other
  190  states, and other countries the depth of Florida’s entertainment
  191  industry talent, crew, production companies, production
  192  equipment resources, related businesses, and support services,
  193  including the establishment of and expenditure for a program of
  194  cooperative advertising with these public and private
  195  organizations and groups in accordance with the provisions of
  196  chapter 120.
  197         5. Provide and arrange for reasonable and necessary
  198  promotional items and services for such persons as the division
  199  office deems proper in connection with the performance of the
  200  promotional and other duties of the division office.
  201         6. Prepare an annual economic impact analysis on
  202  entertainment industry-related activities in the state.
  203         7. Request or accept any grant, payment, or gift of funds
  204  or property made by this state, the United States, or any
  205  department or agency thereof, or by any individual, firm,
  206  corporation, municipality, county, or organization, for any or
  207  all of the purposes of the Office of Film and Entertainment’s 5
  208  year strategic plan or those permitted activities enumerated in
  209  this paragraph. Such funds shall be deposited in the Grants and
  210  Donations Trust Fund of the Executive Office of the Governor for
  211  use by the Office of Film and Entertainment in carrying out its
  212  responsibilities and duties as delineated in law. The division
  213  office may expend such funds in accordance with the terms and
  214  conditions of any such grant, payment, or gift in the pursuit of
  215  its administration or in support of fulfilling its duties and
  216  responsibilities. The division office shall separately account
  217  for the public funds and the private funds deposited into the
  218  trust fund.
  219         (4) ADVISORY COUNCIL.—The board of directors of Enterprise
  220  Florida, Inc., may establish a council to serve as an advisory
  221  body to the division to provide industry insight and expertise
  222  related to developing, marketing, promoting, and providing
  223  service to the state’s entertainment industry, including
  224  development of the 5-year strategic plan. The council must
  225  consist of individuals who are residents of the state; who are
  226  highly knowledgeable of, and active in, the motion picture,
  227  television, video, sound recording, or other entertainment
  228  industries; and who are recognized leaders in these industries
  229  in the state. These individuals may include representatives of
  230  local film commissions, representatives of entertainment
  231  associations, representatives of the broadcast industry,
  232  representatives of labor organizations in the entertainment
  233  industry, and executives of leading or otherwise important
  234  entertainment industry businesses and offices.
  235         Section 3. Section 288.1252, Florida Statutes, is repealed.
  236         Section 4. Section 288.1253, Florida Statutes, is
  237  transferred, renumbered as section 288.9241, Florida Statutes,
  238  and amended to read:
  239         288.9241 288.1253 Travel and entertainment expenses.—
  240         (1) As used in this section, the term “travel expenses”
  241  means the actual, necessary, and reasonable costs of
  242  transportation, meals, lodging, and incidental expenses normally
  243  incurred by an employee of the Division Office of Film and
  244  Entertainment, which costs are defined and prescribed by rules
  245  adopted by the department, subject to approval by the Chief
  246  Financial Officer.
  247         (2) Notwithstanding the provisions of s. 112.061, the
  248  department shall adopt rules by which the Division of Film and
  249  Entertainment it may make expenditures by reimbursement to: the
  250  Governor, the Lieutenant Governor, security staff of the
  251  Governor or Lieutenant Governor, the Commissioner of Film and
  252  Entertainment, or staff of the Division Office of Film and
  253  Entertainment for travel expenses or entertainment expenses
  254  incurred by such individuals solely and exclusively in
  255  connection with the performance of the statutory duties of the
  256  division Office of Film and Entertainment. The rules are subject
  257  to approval by the Chief Financial Officer before adoption. The
  258  rules shall require the submission of paid receipts, or other
  259  proof of expenditure prescribed by the Chief Financial Officer,
  260  with any claim for reimbursement.
  261         (3) The Division Office of Film and Entertainment shall
  262  include in the annual report for the entertainment industry
  263  financial incentive program required under s. 288.1254(8) s.
  264  288.1254(10) a report of the division’s office’s expenditures
  265  for the previous fiscal year. The report must consist of a
  266  summary of all travel, entertainment, and incidental expenses
  267  incurred within the United States and all travel, entertainment,
  268  and incidental expenses incurred outside the United States, as
  269  well as a summary of all successful projects that developed from
  270  such travel.
  271         (4) The Division Office of Film and Entertainment and its
  272  employees and representatives, when authorized, may accept and
  273  use complimentary travel, accommodations, meeting space, meals,
  274  equipment, transportation, and any other goods or services
  275  necessary for or beneficial to the performance of the division’s
  276  office’s duties and purposes, so long as such acceptance or use
  277  is not in conflict with part III of chapter 112. The department
  278  shall, by rule, develop internal controls to ensure that such
  279  goods or services accepted or used pursuant to this subsection
  280  are limited to those that will assist solely and exclusively in
  281  the furtherance of the division’s office’s goals and are in
  282  compliance with part III of chapter 112.
  283         (5) Any claim submitted under this section is not required
  284  to be sworn to before a notary public or other officer
  285  authorized to administer oaths, but any claim authorized or
  286  required to be made under any provision of this section shall
  287  contain a statement that the expenses were actually incurred as
  288  necessary travel or entertainment expenses in the performance of
  289  official duties of the Division Office of Film and Entertainment
  290  and shall be verified by written declaration that it is true and
  291  correct as to every material matter. Any person who willfully
  292  makes and subscribes to any claim which he or she does not
  293  believe to be true and correct as to every material matter or
  294  who willfully aids or assists in, procures, or counsels or
  295  advises with respect to, the preparation or presentation of a
  296  claim pursuant to this section that is fraudulent or false as to
  297  any material matter, whether such falsity or fraud is with the
  298  knowledge or consent of the person authorized or required to
  299  present the claim, commits a misdemeanor of the second degree,
  300  punishable as provided in s. 775.082 or s. 775.083. Whoever
  301  receives a reimbursement by means of a false claim is civilly
  302  liable, in the amount of the overpayment, for the reimbursement
  303  of the public fund from which the claim was paid.
  304         Section 5. Section 288.1254, Florida Statutes, is amended
  305  to read:
  306         288.1254 Entertainment industry financial incentive
  307  program.—
  308         (1) DEFINITIONS.—As used in this section, the term:
  309         (a) “Certified production” means a qualified production
  310  that has tax credits allocated to it by the department based on
  311  the production’s estimated qualified expenditures, up to the
  312  production’s maximum certified amount of tax credits, by the
  313  department. The term does not include a production if its first
  314  day of principal photography or project start date in this state
  315  occurs before the production is certified by the department,
  316  unless the production spans more than 1 fiscal year, was a
  317  certified production on its first day of principal photography
  318  or project start date in this state, and submits an application
  319  for continuing the same production for the subsequent fiscal
  320  year.
  321         (b) “Digital media project” means a production of
  322  interactive entertainment that is produced for distribution in
  323  commercial or educational markets. The term includes a video
  324  game or production intended for Internet or wireless
  325  distribution, an interactive website, digital animation, and
  326  visual effects, including, but not limited to, three-dimensional
  327  movie productions and movie conversions. The term does not
  328  include a production that contains content that is obscene as
  329  defined in s. 847.001.
  330         (c) “High-impact digital media project” means a digital
  331  media project that has qualified expenditures greater than $4.5
  332  million.
  333         (d) “High-impact television series” means:
  334         1. A production created to run multiple production seasons
  335  which has and having an estimated order of at least seven
  336  episodes per season and qualified expenditures of at least
  337  $625,000 per episode; or
  338         2. A telenovela that has qualified expenditures of more
  339  than $4.5 million; a minimum of 45 principal photography days
  340  filmed in this state; a production cast, including background
  341  actors, and crew of which at least 90 percent are legal
  342  residents of this state; and at least 90 percent of its
  343  production occurring in this state.
  344         (e) “Off-season certified production” means a feature film,
  345  independent film, or television series or pilot that films 75
  346  percent or more of its principal photography days from June 1
  347  through November 30.
  348         (e)(f) “Principal photography” means the filming of major
  349  or significant components of the qualified production which
  350  involve lead actors.
  351         (f)(g) “Production” means a theatrical, or direct-to-video,
  352  or direct-to-internet motion picture; a made-for-television
  353  motion picture; visual effects or digital animation sequences
  354  produced in conjunction with a motion picture; a commercial; a
  355  music video; an industrial or educational film; an infomercial;
  356  a documentary film; a television pilot program; a presentation
  357  for a television pilot program; a television series, including,
  358  but not limited to, a drama, a reality show, a comedy, a soap
  359  opera, a telenovela, a game show, an awards show, or a
  360  miniseries production; a direct-to-internet television series;
  361  or a digital media project by the entertainment industry. One
  362  season of a television series is considered one production. The
  363  term does not include a weather or market program; a sporting
  364  event or a sporting event broadcast; a gala; a production that
  365  solicits funds; a home shopping program; a political program; a
  366  political documentary; political advertising; a gambling-related
  367  project or production; a concert production; a local, regional,
  368  or Internet-distributed-only news show or current-events show; a
  369  sports news or sports recap show; a pornographic production; or
  370  any production deemed obscene under chapter 847. A production
  371  may be produced on or by film, tape, or otherwise by means of a
  372  motion picture camera; electronic camera or device; tape device;
  373  computer; any combination of the foregoing; or any other means,
  374  method, or device.
  375         (g)(h) “Production expenditures” means the costs of
  376  tangible and intangible property used for, and services
  377  performed primarily and customarily in, production, including
  378  preproduction and postproduction, but excluding costs for
  379  development, marketing, and distribution. The term includes, but
  380  is not limited to:
  381         1. Wages, salaries, or other compensation paid to legal
  382  residents of this state, including amounts paid through payroll
  383  service companies, for technical and production crews,
  384  directors, producers, and performers.
  385         2. Net expenditures for sound stages, backlots, production
  386  editing, digital effects, sound recordings, sets, and set
  387  construction.
  388         3. Net expenditures for rental equipment, including, but
  389  not limited to, cameras and grip or electrical equipment.
  390         4. Up to $300,000 of the costs of newly purchased computer
  391  software and hardware unique to the project, including servers,
  392  data processing, and visualization technologies, which are
  393  located in and used exclusively in the state for the production
  394  of digital media.
  395         5. Expenditures for meals, travel, and accommodations. For
  396  purposes of this paragraph, the term “net expenditures” means
  397  the actual amount of money a qualified production spent for
  398  equipment or other tangible personal property, after subtracting
  399  any consideration received for reselling or transferring the
  400  item after the qualified production ends, if applicable.
  401         (h)(i) “Qualified expenditures” means production
  402  expenditures incurred in this state by a qualified production
  403  for:
  404         1. Goods purchased or leased from, or services, including,
  405  but not limited to, insurance costs and bonding, payroll
  406  services, and legal fees, which are provided by, a vendor or
  407  supplier in this state that is registered with the Department of
  408  State or the Department of Revenue, has a physical location in
  409  this state, and employs one or more legal residents of this
  410  state. This does not include rebilled goods or services provided
  411  by an in-state company from out-of-state vendors or suppliers.
  412  When services provided by the vendor or supplier include
  413  personal services or labor, only personal services or labor
  414  provided by residents of this state, evidenced by the required
  415  documentation of residency in this state, qualify.
  416         2. Payments to legal residents of this state in the form of
  417  salary, wages, or other compensation up to a maximum of $400,000
  418  per resident unless otherwise specified in subsection (4). A
  419  completed declaration of residency in this state must accompany
  420  the documentation submitted to the department office for
  421  reimbursement.
  422  
  423  For a qualified production involving an event, such as an awards
  424  show, the term does not include expenditures solely associated
  425  with the event itself and not directly required by the
  426  production. The term does not include expenditures incurred
  427  before certification, with the exception of those incurred for a
  428  commercial, a music video, or the pickup of additional episodes
  429  of a high-impact television series within a single season. Under
  430  no circumstances may the qualified production include in the
  431  calculation for qualified expenditures the original purchase
  432  price for equipment or other tangible property that is later
  433  sold or transferred by the qualified production for
  434  consideration. In such cases, the qualified expenditure is the
  435  net of the original purchase price minus the consideration
  436  received upon sale or transfer.
  437         (i)(j) “Qualified production” means a production in this
  438  state meeting the requirements of this section. The term does
  439  not include a production:
  440         1. In which, for the first 2 years of the incentive
  441  program, less than 50 percent, and thereafter, less than 70 60
  442  percent, of the positions that make up its production cast and
  443  below-the-line production crew, or, in the case of digital media
  444  projects, less than 80 75 percent of such positions, are filled
  445  by legal residents of this state, whose residency is
  446  demonstrated by a valid Florida driver driver’s license or other
  447  state-issued identification confirming residency, or students
  448  enrolled full-time in a film-and-entertainment-related course of
  449  study at an institution of higher education in this state; or
  450         2. That contains obscene content as defined in s.
  451  847.001(10).
  452         (j)(k) “Qualified production company” means a corporation,
  453  limited liability company, partnership, or other legal entity
  454  engaged in one or more productions in this state.
  455         (l) “Qualified digital media production facility” means a
  456  building or series of buildings and their improvements in which
  457  data processing, visualization, and sound synchronization
  458  technologies are regularly applied for the production of
  459  qualified digital media projects or the digital animation
  460  components of qualified productions.
  461         (m) “Qualified production facility” means a building or
  462  complex of buildings and their improvements and associated
  463  backlot facilities in which regular filming activity for film or
  464  television has occurred for a period of no less than 1 year and
  465  which contain at least one sound stage of at least 7,800 square
  466  feet.
  467         (n) “Regional population ratio” means the ratio of the
  468  population of a region to the population of this state. The
  469  regional population ratio applicable to a given fiscal year is
  470  the regional population ratio calculated by the Office of Film
  471  and Entertainment using the latest official estimates of
  472  population certified under s. 186.901, available on the first
  473  day of that fiscal year.
  474         (o) “Regional tax credit ratio” means a ratio the numerator
  475  of which is the sum of tax credits awarded to productions in a
  476  region to date plus the tax credits certified, but not yet
  477  awarded, to productions currently in that region and the
  478  denominator of which is the sum of all tax credits awarded in
  479  the state to date plus all tax credits certified, but not yet
  480  awarded, to productions currently in the state. The regional tax
  481  credit ratio applicable to a given year is the regional tax
  482  credit ratio calculated by the Office of Film and Entertainment
  483  using credit award and certification information available on
  484  the first day of that fiscal year.
  485         (p) “Underutilized region” for a given state fiscal year
  486  means a region with a regional tax credit ratio applicable to
  487  that fiscal year that is lower than its regional population
  488  ratio applicable to that fiscal year. The following regions are
  489  established for purposes of making this determination:
  490         1. North Region, consisting of Alachua, Baker, Bay,
  491  Bradford, Calhoun, Clay, Columbia, Dixie, Duval, Escambia,
  492  Franklin, Gadsden, Gilchrist, Gulf, Hamilton, Holmes, Jackson,
  493  Jefferson, Lafayette, Leon, Levy, Liberty, Madison, Nassau,
  494  Okaloosa, Putnam, Santa Rosa, St. Johns, Suwannee, Taylor,
  495  Union, Wakulla, Walton, and Washington Counties.
  496         2. Central East Region, consisting of Brevard, Flagler,
  497  Indian River, Lake, Okeechobee, Orange, Osceola, Seminole, St.
  498  Lucie, and Volusia Counties.
  499         3. Central West Region, consisting of Citrus, Hernando,
  500  Hillsborough, Manatee, Marion, Polk, Pasco, Pinellas, Sarasota,
  501  and Sumter Counties.
  502         4. Southwest Region, consisting of Charlotte, Collier,
  503  DeSoto, Glades, Hardee, Hendry, Highlands, and Lee Counties.
  504         5. Southeast Region, consisting of Broward, Martin, Miami
  505  Dade, Monroe, and Palm Beach Counties.
  506         (k)(q) “Interactive website” means a website or group of
  507  websites that includes interactive and downloadable content, and
  508  creates 25 new Florida full-time equivalent positions operating
  509  from a principal place of business located within Florida. An
  510  interactive website or group of websites must provide
  511  documentation that those jobs were created to the department
  512  before Office of Film and Entertainment prior to the award of
  513  tax credits. Each subsequent program application must provide
  514  proof that 25 Florida full-time equivalent positions are
  515  maintained.
  516         (2) CREATION AND PURPOSE OF PROGRAM.—The entertainment
  517  industry financial incentive program is created within the
  518  Office of Film and Entertainment. The purpose of this program is
  519  to encourage the use of this state as a site for entertainment
  520  production, for filming, and for the digital production of
  521  entertainment films, and to develop and sustain the workforce
  522  and infrastructure for film, digital media, and entertainment
  523  production.
  524         (3) APPLICATION PROCEDURE; APPROVAL PROCESS.—
  525         (a) Program application.—A qualified production company
  526  producing a qualified production in this state may submit a
  527  program application to the department Office of Film and
  528  Entertainment for the purpose of determining qualification for
  529  an award of tax credits authorized by this section no earlier
  530  than 150 180 days before the first day of principal photography
  531  or project start date in this state. The applicant shall provide
  532  the department Office of Film and Entertainment with information
  533  required to determine whether the production is a qualified
  534  production and to determine the qualified expenditures and other
  535  information necessary for the department office to determine
  536  eligibility for the tax credit.
  537         (b) Required documentation.—The department Office of Film
  538  and Entertainment shall develop an application form for
  539  qualifying an applicant as a qualified production. The form must
  540  include, but need not be limited to, production-related
  541  information concerning employment of residents in this state, a
  542  detailed budget of planned qualified expenditures and aggregate
  543  nonqualified expenditures in this state, proof of financing for
  544  the production, and the applicant’s signed affirmation that the
  545  information on the form has been verified and is correct. The
  546  Division Office of Film and Entertainment of Enterprise Florida,
  547  Inc., and local film commissions shall distribute the form.
  548         (c) Application process.—The department Office of Film and
  549  Entertainment shall establish a process by which an application
  550  is accepted and reviewed and by which tax credit eligibility and
  551  award amount are determined. The department may consult with the
  552  Division Office of Film and Entertainment of Enterprise Florida,
  553  Inc., or may request assistance from a duly appointed local film
  554  commission in determining compliance with this section.
  555         1. Applications may be accepted until, and shall include,
  556  the application that causes the amount of tax credit eligibility
  557  requested to exceed 125 percent of tax credits allocated for the
  558  fiscal year under paragraph (5)(a). Applications received after
  559  all tax credits allocated for the fiscal year have been
  560  certified shall be assigned a queue number that is determined by
  561  the date and time the application was received by the
  562  department. Applications in the queue are deemed denied on June
  563  30 of each year.
  564         2. A certified high-impact television series may submit an
  565  initial application for no more than two successive seasons,
  566  notwithstanding the fact that the second season has successive
  567  seasons have not been ordered. The successive season’s qualified
  568  expenditure amounts for the second season shall be based on the
  569  current season’s estimated qualified expenditures. Upon the
  570  completion of production of each season, a high-impact
  571  television series may submit an application for no more than one
  572  additional season. To be certified for credits, the applicant
  573  must provide proof that the additional season has been ordered
  574  as part of the application for the additional season.
  575         (d) Certification.—
  576         1. The department Office of Film and Entertainment shall
  577  review the application within 15 business days after receipt.
  578  Upon the department’s its determination, in consultation with
  579  the Division of Film and Entertainment of Enterprise Florida,
  580  Inc., that the application contains all the information required
  581  by this subsection and meets the criteria set out in this
  582  section, the department Office of Film and Entertainment shall
  583  deny qualify the applicant and recommend to the department that
  584  the applicant be certified for the maximum tax credit award
  585  amount. Within 5 business days after receipt of the
  586  recommendation, the department shall reject the application
  587  recommendation or certify the maximum recommended tax credit
  588  award, if any funds are available, to the applicant and to the
  589  executive director of the Department of Revenue.
  590         2. In a fiscal year, the department may certify only the
  591  amount of tax credits allocated for that fiscal year, as
  592  provided under subsection (5). However, the department may
  593  certify a high-impact television series for additional tax
  594  credits allocated in a future fiscal year if the high-impact
  595  television series has an executed contract or order for season
  596  renewal effective for the future fiscal year from which tax
  597  credits would be allocated. The department may certify one
  598  additional ordered season per future fiscal year in which the
  599  qualified production would occur.
  600         (e) Employment.—Upon certification by the department, the
  601  production must provide the department and the Division of Film
  602  and Entertainment of Enterprise Florida, Inc., with a single
  603  point of contact and information related to the production’s
  604  needs for cast, crew, contractors, and vendors. The division
  605  shall publish this information online, including the type of
  606  production, the projected start date of the production, the
  607  locations in this state for such production, and the e-mail or
  608  other contact information for the production’s point of contact.
  609  The department, in consultation with the division, may adopt
  610  procedures for a production to post such information itself
  611  within 7 days after certification.
  612         (f)(e)Grounds for denial.—
  613         1. The department Office of Film and Entertainment shall
  614  deny an application if it determines that the application is not
  615  complete, or the production or application does not meet the
  616  requirements of this section, or there are no additional credits
  617  for certification as provided under paragraph (c). Within 90
  618  days after submitting a program application, except with respect
  619  to applications in the independent and emerging media queue, a
  620  production must provide proof of project financing to the Office
  621  of Film and Entertainment, otherwise the project is deemed
  622  denied and withdrawn. A project that has been denied withdrawn
  623  may submit a new application upon providing the Office of Film
  624  and Entertainment proof of financing.
  625         2. The department shall deny a certified production upon
  626  any circumstance affecting the reasonable schedule or timely
  627  completion of the certified production, including a break in
  628  production, change in the production schedule, or loss of
  629  financing for the production. A certified production must notify
  630  the department within 5 days after any circumstance affecting
  631  its timely completion. A certified production may not be denied
  632  if it provides the department with proof of replacement
  633  financing within 10 days after the loss of financing for the
  634  production. To keep a reasonable schedule, the certified
  635  production must begin principal photography or the production
  636  project in this state no more than 45 calendar days before or
  637  after the principal photography or project start date provided
  638  in the production’s program application.
  639         (g)(f)Verification of actual qualified expenditures.—
  640         1. The department, in consultation with the Division of
  641  Film and Entertainment, Office of Film and Entertainment shall
  642  develop a process to verify the actual qualified expenditures of
  643  a certified production. The process must require:
  644         a. A certified production to submit, within 180 days in a
  645  timely manner after production ends in this state and after
  646  making all of its qualified expenditures in this state, data
  647  substantiating each qualified expenditure, including
  648  documentation on the net expenditure on equipment and other
  649  tangible personal property by the qualified production, to an
  650  independent certified public accountant licensed in this state;
  651         b. Such accountant to conduct a compliance audit, at the
  652  certified production’s expense, to substantiate each qualified
  653  expenditure and submit the results as a report, along with the
  654  required substantiating data, to the department Office of Film
  655  and Entertainment; and
  656         c. The department Office of Film and Entertainment to
  657  review the accountant’s submittal and verify report to the
  658  department the final verified amount of actual qualified
  659  expenditures made by the certified production.
  660         2. The department shall determine and approve the final tax
  661  credit award amount to each certified applicant based on the
  662  final verified amount of actual qualified expenditures and shall
  663  notify the executive director of the Department of Revenue in
  664  writing that the certified production has met the requirements
  665  of the incentive program and of the final amount of the tax
  666  credit award. The final tax credit award amount may not exceed
  667  the maximum tax credit award amount certified under paragraph
  668  (d).
  669         (h)(g)Promoting Florida.—The department Office of Film and
  670  Entertainment shall ensure that, as a condition of receiving a
  671  tax credit under this section, marketing materials promoting
  672  this state as a tourist destination or film and entertainment
  673  production destination are included, when appropriate, at no
  674  cost to the state, which must, at a minimum, include placement
  675  of a “Filmed in Florida” or “Produced in Florida” logo in the
  676  opening titles and end credits. The placement of a “Filmed in
  677  Florida” or “Produced in Florida” logo on all packaging material
  678  and hard media is also required, unless such placement is
  679  prohibited by licensing or other contractual obligations. The
  680  size and placement of such logo shall be commensurate to other
  681  logos used. If no logos are used, the statement “Filmed in
  682  Florida using Florida’s Entertainment Industry Financial
  683  Incentive,” or a similar statement approved by the Division
  684  Office of Film and Entertainment of Enterprise Florida, Inc.,
  685  shall be used. The Division Office of Film and Entertainment of
  686  Enterprise Florida, Inc., shall provide a logo and supply it for
  687  the purposes specified in this paragraph. A 30-second “Visit
  688  Florida” promotional video must also be included on all optical
  689  disc formats of a film, unless such placement is prohibited by
  690  licensing or other contractual obligations. The 30-second
  691  promotional video shall be approved and provided by the Florida
  692  Tourism Industry Marketing Corporation in consultation with the
  693  Division Commissioner of Film and Entertainment of Enterprise
  694  Florida, Inc.
  695         (4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES;
  696  ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS;
  697  PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND
  698  ACQUISITIONS.—
  699         (a) Priority for tax credit award.—The priority of a
  700  qualified production for tax credit awards must be determined on
  701  a first-come, first-served basis within its appropriate queue.
  702  Each qualified production must be placed into the appropriate
  703  queue and is subject to the requirements of that queue.
  704         (b) Tax credit eligibility.—
  705         1. General production queue.—Ninety-four percent of tax
  706  credits authorized pursuant to subsection (5) (6) in any state
  707  fiscal year must be dedicated to the general production queue.
  708  The general production queue consists of all qualified
  709  productions other than those eligible for the commercial and
  710  music video queue or the independent and emerging media
  711  production queue. A qualified production that demonstrates a
  712  minimum of $625,000 in qualified expenditures is eligible for
  713  tax credits equal to 20 percent of its actual qualified
  714  expenditures, up to a maximum of $10 million $8 million. A
  715  qualified production that incurs qualified expenditures during
  716  multiple state fiscal years may combine those expenditures to
  717  satisfy the $625,000 minimum threshold.
  718         a. For the first 10 months of each fiscal year, 20 percent
  719  of the credits in the general production queue shall be set
  720  aside for qualified productions in underutilized counties. A
  721  qualified production eligible for these funds is a production
  722  for which at least 70 percent of its principal photography days
  723  occur within an underutilized county designated as an
  724  underutilized county at the time that the production is
  725  certified. The term “underutilized county” means a county in
  726  which less than $500,000 in qualified expenditures were made in
  727  the last 2 fiscal years. Any funds not yet certified from this
  728  set-aside at the end of the 10-month period may be certified to
  729  qualified productions pursuant to this section An off-season
  730  certified production that is a feature film, independent film,
  731  or television series or pilot is eligible for an additional 5
  732  percent tax credit on actual qualified expenditures. An off
  733  season certified production that does not complete 75 percent of
  734  principal photography due to a disruption caused by a hurricane
  735  or tropical storm may not be disqualified from eligibility for
  736  the additional 5 percent credit as a result of the disruption.
  737         b. If more than 45 percent of the sum of total tax credits
  738  initially certified and awarded after April 1, 2012, total tax
  739  credits initially certified after April 1, 2012, but not yet
  740  awarded, and total tax credits available for certification after
  741  April 1, 2012, but not yet certified has been awarded for high
  742  impact television series, then no high-impact television series
  743  is eligible for tax credits under this subparagraph. Tax credits
  744  initially certified for a high-impact television series after
  745  April 1, 2012, may not be awarded if the award will cause the
  746  percentage threshold in this sub-subparagraph to be exceeded.
  747  This sub-subparagraph does not prohibit the award of tax credits
  748  certified before April 1, 2012, for high-impact television
  749  series.
  750         b.c.Subject to sub-subparagraph b., First priority in the
  751  queue for tax credit awards not yet certified shall be given to
  752  high-impact television series and high-impact digital media
  753  projects. For the purposes of determining priority between a
  754  high-impact television series and a high-impact digital media
  755  project, the first position must go to the first application
  756  received. Thereafter, priority shall be determined by
  757  alternating between a high-impact television series and a high
  758  impact digital media project on a first-come, first-served
  759  basis. However, if the Office of Film and Entertainment receives
  760  an application for a high-impact television series or high
  761  impact digital media project that would be certified but for the
  762  alternating priority, the office may certify the project as
  763  being in the priority position if an application that would
  764  normally be the priority position is not received within 5
  765  business days.
  766         d. A qualified production for which at least 67 percent of
  767  its principal photography days occur within a region designated
  768  as an underutilized region at the time that the production is
  769  certified is eligible for an additional 5 percent tax credit.
  770         c.e. A qualified production is eligible for an additional
  771  15 percent tax credit on qualified expenditures that are wages,
  772  salaries, or other compensation paid to the following
  773  individuals employed by the qualified production: that employs
  774  students enrolled full-time in a film and entertainment-related
  775  or digital media-related course of study at an institution of
  776  higher education in this state, individuals participating in the
  777  Road-to-Independence Program under s. 409.1451, individuals with
  778  developmental disabilities as defined under s. 393.063 residing
  779  in this state, veterans residing in this state, and individuals
  780  is eligible for an additional 15 percent tax credit on qualified
  781  expenditures that are wages, salaries, or other compensation
  782  paid to such students. The additional 15 percent tax credit is
  783  also applicable to persons hired within 12 months after
  784  graduating from a film and entertainment-related or digital
  785  media-related course of study at an institution of higher
  786  education in this state. The additional 15 percent tax credit
  787  applies to qualified expenditures that are wages, salaries, or
  788  other compensation paid to such recent graduates for 1 year
  789  after the date of hiring.
  790         f. A qualified production for which 50 percent or more of
  791  its principal photography occurs at a qualified production
  792  facility, or a qualified digital media project or the digital
  793  animation component of a qualified production for which 50
  794  percent or more of the project’s or component’s qualified
  795  expenditures are related to a qualified digital media production
  796  facility, is eligible for an additional 5 percent tax credit on
  797  actual qualified expenditures for production activity at that
  798  facility.
  799         d. A qualified production that completes a capital
  800  investment of at least $2 million before the completion of the
  801  qualified production is eligible for an additional 5 percent tax
  802  credit. The capital investment must be permanent and must remain
  803  in this state after the production ends in this state.
  804         e.g. A qualified production is not eligible for tax credits
  805  provided under this paragraph totaling more than 25 percent 30
  806  percent of its actual qualified expenses.
  807         2. Commercial and music video queue.—Three percent of tax
  808  credits authorized pursuant to subsection (5) (6) in any state
  809  fiscal year must be dedicated to the commercial and music video
  810  queue. A qualified production company that produces national or
  811  regional commercials or music videos may be eligible for a tax
  812  credit award if it demonstrates a minimum of $100,000 in
  813  qualified expenditures per national or regional commercial or
  814  music video and exceeds a combined threshold of $500,000 after
  815  combining actual qualified expenditures from qualified
  816  commercials and music videos during a single state fiscal year.
  817  After a qualified production company that produces commercials,
  818  music videos, or both reaches the threshold of $500,000, it is
  819  eligible to apply for certification for a tax credit award. The
  820  maximum credit award shall be equal to 20 percent of its actual
  821  qualified expenditures up to a maximum of $500,000. If there is
  822  a surplus at the end of a fiscal year after the department
  823  Office of Film and Entertainment certifies and determines the
  824  tax credits for all qualified commercial and video projects,
  825  such surplus tax credits shall be carried forward to the
  826  following fiscal year and are available to any eligible
  827  qualified productions under the general production queue.
  828         3. Independent and emerging media production queue.—Three
  829  percent of tax credits authorized pursuant to subsection (5) (6)
  830  in any state fiscal year must be dedicated to the independent
  831  and emerging media production queue. This queue is intended to
  832  encourage independent film and emerging media production in this
  833  state. Any qualified production, excluding commercials,
  834  infomercials, or music videos, which demonstrates at least
  835  $100,000, but not more than $625,000, in total qualified
  836  expenditures is eligible for tax credits equal to 20 percent of
  837  its actual qualified expenditures. If a surplus exists at the
  838  end of a fiscal year after the department Office of Film and
  839  Entertainment certifies and determines the tax credits for all
  840  qualified independent and emerging media production projects,
  841  such surplus tax credits shall be carried forward to the
  842  following fiscal year and are available to any eligible
  843  qualified productions under the general production queue.
  844         4. Family-friendly productions.—A certified theatrical or
  845  direct-to-video motion picture production or video game
  846  determined by the Commissioner of Film and Entertainment, with
  847  the advice of the Florida Film and Entertainment Advisory
  848  Council, to be family-friendly, based on review of the script
  849  and review of the final release version, is eligible for an
  850  additional tax credit equal to 5 percent of its actual qualified
  851  expenditures. Family-friendly productions are those that have
  852  cross-generational appeal; would be considered suitable for
  853  viewing by children age 5 or older; are appropriate in theme,
  854  content, and language for a broad family audience; embody a
  855  responsible resolution of issues; and do not exhibit or imply
  856  any act of smoking, sex, nudity, or vulgar or profane language.
  857         (c) Withdrawal of tax credit eligibility.—A qualified or
  858  certified production must continue on a reasonable schedule,
  859  which includes beginning principal photography or the production
  860  project in this state no more than 45 calendar days before or
  861  after the principal photography or project start date provided
  862  in the production’s program application. The department shall
  863  withdraw the eligibility of a qualified or certified production
  864  that does not continue on a reasonable schedule.
  865         (c)(d)Election and distribution of tax credits.—
  866         1. A certified production company receiving a tax credit
  867  award under this section shall, at the time the credit is
  868  awarded by the department after production is completed and all
  869  requirements to receive a credit award have been met, make an
  870  irrevocable election to apply the credit against taxes due under
  871  chapter 220, against state taxes collected or accrued under
  872  chapter 212, or against a stated combination of the two taxes.
  873  The election is binding upon any distributee, successor, or
  874  transferee, or purchaser. The department shall notify the
  875  Department of Revenue of any election made pursuant to this
  876  paragraph.
  877         2. A qualified production company is eligible for tax
  878  credits against its sales and use tax liabilities and corporate
  879  income tax liabilities as provided in this section. However, tax
  880  credits awarded under this section may not be claimed against
  881  sales and use tax liabilities or corporate income tax
  882  liabilities for any tax period beginning before July 1, 2011,
  883  regardless of when the credits are applied for or awarded.
  884         (d)(e)Tax credit carryforward.—If the certified production
  885  company cannot use the entire tax credit in the taxable year or
  886  reporting period in which the credit is awarded, any excess
  887  amount may be carried forward to a succeeding taxable year or
  888  reporting period. A tax credit applied against taxes imposed
  889  under chapter 212 or may be carried forward for a maximum of 5
  890  years after the date the credit is awarded. A tax credit applied
  891  against taxes imposed under chapter 220 may be carried forward
  892  for a maximum of 5 years after the date the credit is awarded,
  893  after which the credit expires and may not be used.
  894         (e)(f)Consolidated returns.—A certified production company
  895  that files a Florida consolidated return as a member of an
  896  affiliated group under s. 220.131(1) may be allowed the credit
  897  on a consolidated return basis up to the amount of the tax
  898  imposed upon the consolidated group under chapter 220.
  899         (f)(g)Partnership and noncorporate distributions.—A
  900  qualified production company that is not a corporation as
  901  defined in s. 220.03 may elect to distribute tax credits awarded
  902  under this section to its partners or members in proportion to
  903  their respective distributive income or loss in the taxable year
  904  in which the tax credits were awarded.
  905         (g)(h)Mergers or acquisitions.—Tax credits available under
  906  this section to a certified production company may succeed to a
  907  surviving or acquiring entity subject to the same conditions and
  908  limitations as described in this section; however, they may not
  909  be transferred again by the surviving or acquiring entity.
  910         (5) TRANSFER OF TAX CREDITS.—
  911         (a) Authorization.—Upon application to the Office of Film
  912  and Entertainment and approval by the department, a certified
  913  production company, or a partner or member that has received a
  914  distribution under paragraph (4)(g), may elect to transfer, in
  915  whole or in part, any unused credit amount granted under this
  916  section. An election to transfer any unused tax credit amount
  917  under chapter 212 or chapter 220 must be made no later than 5
  918  years after the date the credit is awarded, after which period
  919  the credit expires and may not be used. The department shall
  920  notify the Department of Revenue of the election and transfer.
  921         (b) Number of transfers permitted.—A certified production
  922  company that elects to apply a credit amount against taxes
  923  remitted under chapter 212 is permitted a one-time transfer of
  924  unused credits to one transferee. A certified production company
  925  that elects to apply a credit amount against taxes due under
  926  chapter 220 is permitted a one-time transfer of unused credits
  927  to no more than four transferees, and such transfers must occur
  928  in the same taxable year.
  929         (c) Transferee rights and limitations.—The transferee is
  930  subject to the same rights and limitations as the certified
  931  production company awarded the tax credit, except that the
  932  initial transferee shall be permitted a one-time transfer of
  933  unused credits to no more than two subsequent transferees, and
  934  such transfers must occur in the same taxable year as the
  935  credits were received by the initial transferee, after which the
  936  subsequent transferees may not sell or otherwise transfer the
  937  tax credit.
  938         (6) RELINQUISHMENT OF TAX CREDITS.—
  939         (a) Beginning July 1, 2011, a certified production company,
  940  or any person who has acquired a tax credit from a certified
  941  production company pursuant to subsections (4) and (5), may
  942  elect to relinquish the tax credit to the Department of Revenue
  943  in exchange for 90 percent of the amount of the relinquished tax
  944  credit.
  945         (b) The Department of Revenue may approve payments to
  946  persons relinquishing tax credits pursuant to this subsection.
  947         (c) Subject to legislative appropriation, the Department of
  948  Revenue shall request the Chief Financial Officer to issue
  949  warrants to persons relinquishing tax credits. Payments under
  950  this subsection shall be made from the funds from which the
  951  proceeds from the taxes against which the tax credits could have
  952  been applied pursuant to the irrevocable election made by the
  953  certified production company under subsection (4) are deposited.
  954         (5)(7) ANNUAL ALLOCATION OF TAX CREDITS.—
  955         (a) The aggregate amount of the tax credits that may be
  956  certified pursuant to paragraph (3)(d) may not exceed:
  957         1. For fiscal year 2010-2011, $53.5 million.
  958         2. For fiscal year 2011-2012, $74.5 million.
  959         3. For fiscal years 2012-2013, 2013-2014, 2014-2015, and
  960  2015-2016, $42 million per fiscal year.
  961         4. Beginning July 1, 2014, for fiscal years 2014-2015 and
  962  2015-2016, an additional $50 million.
  963         5. Beginning July 1, 2016, for fiscal years 2016-2017,
  964  2017-2018, 2018-2019, and 2019-2020, $50 million.
  965         (b) Any portion of the maximum amount of tax credits
  966  established per fiscal year in paragraph (a) that is not
  967  certified as of the end of a fiscal year shall be carried
  968  forward and made available for certification during the
  969  following 2 fiscal years in addition to the amounts available
  970  for certification under paragraph (a) for those fiscal years.
  971         (c) Upon approval of the final tax credit award amount
  972  pursuant to subparagraph (3)(g)2. (3)(f)2., an amount equal to
  973  the difference between the maximum tax credit award amount
  974  previously certified under paragraph (3)(d) and the approved
  975  final tax credit award amount shall immediately be available for
  976  recertification during the current and following fiscal years in
  977  addition to the amounts available for certification under
  978  paragraph (a) for those fiscal years.
  979         (d) Amounts available on and after July 1, 2014, for
  980  certification may not be certified before the fiscal year in
  981  which the amounts are listed in paragraph (a), except as
  982  provided in subparagraph (3)(d)2. If, during a fiscal year, the
  983  total amount of credits applied for, pursuant to paragraph
  984  (3)(a), exceeds the amount of credits available for
  985  certification in that fiscal year, such excess shall be treated
  986  as having been applied for on the first day of the next fiscal
  987  year in which credits remain available for certification.
  988         (6)(8) RULES, POLICIES, AND PROCEDURES.—
  989         (a) The department may adopt rules pursuant to ss.
  990  120.536(1) and 120.54 and develop policies and procedures to
  991  implement and administer this section, including, but not
  992  limited to, rules specifying requirements for the application
  993  and approval process, records required for substantiation for
  994  tax credits, procedures for making the election in paragraph
  995  (4)(c) (4)(d), the manner and form of documentation required to
  996  claim tax credits awarded or transferred under this section, and
  997  marketing requirements for tax credit recipients.
  998         (b) The Department of Revenue may adopt rules pursuant to
  999  ss. 120.536(1) and 120.54 to administer this section, including
 1000  rules governing the examination and audit procedures required to
 1001  administer this section and the manner and form of documentation
 1002  required to claim tax credits awarded or, transferred, or
 1003  relinquished under this section.
 1004         (7)(9) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
 1005  CREDITS; FRAUDULENT CLAIMS.—
 1006         (a) Audit authority.—The Department of Revenue may conduct
 1007  examinations and audits as provided in s. 213.34 to verify that
 1008  tax credits under this section are received, transferred, and
 1009  applied according to the requirements of this section. If the
 1010  Department of Revenue determines that tax credits are not
 1011  received, transferred, or applied as required by this section,
 1012  it may, in addition to the remedies provided in this subsection,
 1013  pursue recovery of such funds pursuant to the laws and rules
 1014  governing the assessment of taxes.
 1015         (b) Revocation of tax credits.—The department may revoke or
 1016  modify any written decision qualifying, certifying, or otherwise
 1017  granting eligibility for tax credits under this section if it is
 1018  discovered that the tax credit applicant submitted any false
 1019  statement, representation, or certification in any application,
 1020  record, report, plan, or other document filed in an attempt to
 1021  receive tax credits under this section. The department shall
 1022  immediately notify the Department of Revenue of any revoked or
 1023  modified orders affecting previously granted tax credits.
 1024  Additionally, the applicant must notify the Department of
 1025  Revenue of any change in its tax credit claimed.
 1026         (c) Forfeiture of tax credits.—A determination by the
 1027  Department of Revenue, as a result of an audit pursuant to
 1028  paragraph (a) or from information received from the department
 1029  or Division Office of Film and Entertainment of Enterprise
 1030  Florida, Inc., that an applicant received tax credits pursuant
 1031  to this section to which the applicant was not entitled is
 1032  grounds for forfeiture of previously claimed and received tax
 1033  credits. The applicant is responsible for returning forfeited
 1034  tax credits to the Department of Revenue, and such funds shall
 1035  be paid into the General Revenue Fund of the state. Tax credits
 1036  purchased in good faith are not subject to forfeiture unless the
 1037  transferee submitted fraudulent information in the purchase or
 1038  failed to meet the requirements in subsection (5).
 1039         (d) Fraudulent claims.—Any applicant that submits
 1040  fraudulent information under this section is liable for
 1041  reimbursement of the reasonable costs and fees associated with
 1042  the review, processing, investigation, and prosecution of the
 1043  fraudulent claim. An applicant that obtains a credit payment
 1044  under this section through a claim that is fraudulent is liable
 1045  for reimbursement of the credit amount plus a penalty in an
 1046  amount double the credit amount. The penalty is in addition to
 1047  any criminal penalty to which the applicant is liable for the
 1048  same acts. The applicant is also liable for costs and fees
 1049  incurred by the state in investigating and prosecuting the
 1050  fraudulent claim.
 1051         (8)(10) ANNUAL REPORT.—Each November 1, the department
 1052  Office of Film and Entertainment shall submit an annual report
 1053  for the previous fiscal year to the Governor, the President of
 1054  the Senate, and the Speaker of the House of Representatives
 1055  which outlines the incentive program’s return on investment and
 1056  economic benefits to the state. The report must also include an
 1057  estimate of the full-time equivalent positions created by each
 1058  production that received tax credits under this section and
 1059  information relating to the distribution of productions
 1060  receiving credits by geographic region and type of production.
 1061  The report must also include the expenditures report required
 1062  under s. 288.9241 s. 288.1253(3) and the information describing
 1063  the relationship between tax exemptions and incentives to
 1064  industry growth required under s. 288.1258(5). The department
 1065  may work with the Division of Film and Entertainment of
 1066  Enterprise Florida, Inc., to develop the annual report.
 1067         (9)(11) REPEAL.—This section is repealed July 1, 2020 July
 1068  1, 2016, except that:
 1069         (a) Tax credits certified under paragraph (3)(d) before
 1070  July 1, 2020 July 1, 2016, may be awarded under paragraph (3)(g)
 1071  (3)(f) on or after July 1, 2020 July 1, 2016, if the other
 1072  requirements of this section are met.
 1073         (b) Tax credits carried forward under paragraph (4)(d)
 1074  (4)(e) remain valid for the period specified.
 1075         (c) Subsections (6) and (7) (5), (8) and (9) shall remain
 1076  in effect until July 1, 2025 July 1, 2021.
 1077         Section 6. Beginning July 1, 2014, applications on file
 1078  with the Department of Economic Opportunity to receive a tax
 1079  credit through the entertainment industry financial incentive
 1080  program under s. 288.1254, Florida Statutes, which are not yet
 1081  certified are deemed denied.
 1082         Section 7. Section 288.1258, Florida Statutes, is amended
 1083  to read:
 1084         288.1258 Entertainment industry qualified production
 1085  companies; application procedure; categories; duties of the
 1086  Department of Revenue; records and reports.—
 1087         (1) PRODUCTION COMPANIES AUTHORIZED TO APPLY.—
 1088         (a) Any production company engaged in this state in the
 1089  production of motion pictures, made-for-TV motion pictures,
 1090  television series, commercial advertising, music videos, or
 1091  sound recordings may submit an application to the Department of
 1092  Revenue to be approved by the department Office of Film and
 1093  Entertainment as a qualified production company for the purpose
 1094  of receiving a sales and use tax certificate of exemption from
 1095  the Department of Revenue.
 1096         (b) As used in For the purposes of this section, the term
 1097  “qualified production company” means any production company that
 1098  has submitted a properly completed application to the Department
 1099  of Revenue and that is subsequently qualified by the department
 1100  Office of Film and Entertainment.
 1101         (2) APPLICATION PROCEDURE.—
 1102         (a) The Department of Revenue will review all submitted
 1103  applications for the required information. Within 10 working
 1104  days after the receipt of a properly completed application, the
 1105  Department of Revenue will forward the completed application to
 1106  the department Office of Film and Entertainment for approval.
 1107         (b)1. The department Office of Film and Entertainment shall
 1108  establish a process by which an entertainment industry
 1109  production company may be approved by the department office as a
 1110  qualified production company and may receive a certificate of
 1111  exemption from the Department of Revenue for the sales and use
 1112  tax exemptions under ss. 212.031, 212.06, and 212.08.
 1113         2. Upon determination by the department Office of Film and
 1114  Entertainment that a production company meets the established
 1115  approval criteria and qualifies for exemption, the department
 1116  Office of Film and Entertainment shall return the approved
 1117  application or application renewal or extension to the
 1118  Department of Revenue, which shall issue a certificate of
 1119  exemption.
 1120         3. The department Office of Film and Entertainment shall
 1121  deny an application or application for renewal or extension from
 1122  a production company if it determines that the production
 1123  company does not meet the established approval criteria.
 1124         (c) The department Office of Film and Entertainment shall
 1125  develop, with the cooperation of the Department of Revenue, the
 1126  Division of Film and Entertainment of Enterprise Florida, Inc.,
 1127  and local government entertainment industry promotion agencies,
 1128  a standardized application form for use in approving qualified
 1129  production companies.
 1130         1. The application form shall include, but not be limited
 1131  to, production-related information on employment, proposed
 1132  budgets, planned purchases of items exempted from sales and use
 1133  taxes under ss. 212.031, 212.06, and 212.08, a signed
 1134  affirmation from the applicant that any items purchased for
 1135  which the applicant is seeking a tax exemption are intended for
 1136  use exclusively as an integral part of entertainment industry
 1137  preproduction, production, or postproduction activities engaged
 1138  in primarily in this state, and a signed affirmation from the
 1139  department Office of Film and Entertainment that the information
 1140  on the application form has been verified and is correct. In
 1141  lieu of information on projected employment, proposed budgets,
 1142  or planned purchases of exempted items, a production company
 1143  seeking a 1-year certificate of exemption may submit summary
 1144  historical data on employment, production budgets, and purchases
 1145  of exempted items related to production activities in this
 1146  state. Any information gathered from production companies for
 1147  the purposes of this section shall be considered confidential
 1148  taxpayer information and shall be disclosed only as provided in
 1149  s. 213.053.
 1150         2. The application form may be distributed to applicants by
 1151  the department, the Division Office of Film and Entertainment of
 1152  Enterprise Florida, Inc., or local film commissions.
 1153         (d) All applications, renewals, and extensions for
 1154  designation as a qualified production company shall be processed
 1155  by the department Office of Film and Entertainment.
 1156         (e) If In the event that the Department of Revenue
 1157  determines that a production company no longer qualifies for a
 1158  certificate of exemption, or has used a certificate of exemption
 1159  for purposes other than those authorized by this section and
 1160  chapter 212, the Department of Revenue shall revoke the
 1161  certificate of exemption of that production company, and any
 1162  sales or use taxes exempted on items purchased or leased by the
 1163  production company during the time such company did not qualify
 1164  for a certificate of exemption or improperly used a certificate
 1165  of exemption shall become immediately due to the Department of
 1166  Revenue, along with interest and penalty as provided by s.
 1167  212.12. In addition to the other penalties imposed by law, any
 1168  person who knowingly and willfully falsifies an application, or
 1169  uses a certificate of exemption for purposes other than those
 1170  authorized by this section and chapter 212, commits a felony of
 1171  the third degree, punishable as provided in ss. 775.082,
 1172  775.083, and 775.084.
 1173         (3) CATEGORIES.—
 1174         (a)1. A production company may be qualified for designation
 1175  as a qualified production company for a period of 1 year if the
 1176  company has operated a business in Florida at a permanent
 1177  address for a period of 12 consecutive months. Such a qualified
 1178  production company shall receive a single 1-year certificate of
 1179  exemption from the Department of Revenue for the sales and use
 1180  tax exemptions under ss. 212.031, 212.06, and 212.08, which
 1181  certificate shall expire 1 year after issuance or upon the
 1182  cessation of business operations in the state, at which time the
 1183  certificate shall be surrendered to the Department of Revenue.
 1184         2. The department Office of Film and Entertainment shall
 1185  develop a method by which a qualified production company may
 1186  annually renew a 1-year certificate of exemption for a period of
 1187  up to 5 years without requiring the production company to
 1188  resubmit a new application during that 5-year period.
 1189         3. Any qualified production company may submit a new
 1190  application for a 1-year certificate of exemption upon the
 1191  expiration of that company’s certificate of exemption.
 1192         (b)1. A production company may be qualified for designation
 1193  as a qualified production company for a period of 90 days. Such
 1194  production company shall receive a single 90-day certificate of
 1195  exemption from the Department of Revenue for the sales and use
 1196  tax exemptions under ss. 212.031, 212.06, and 212.08, which
 1197  certificate shall expire 90 days after issuance, with extensions
 1198  contingent upon approval of the department Office of Film and
 1199  Entertainment. The certificate shall be surrendered to the
 1200  Department of Revenue upon its expiration.
 1201         2. Any production company may submit a new application for
 1202  a 90-day certificate of exemption upon the expiration of that
 1203  company’s certificate of exemption.
 1204         (4) DUTIES OF THE DEPARTMENT OF REVENUE.—
 1205         (a) The Department of Revenue shall review the initial
 1206  application and notify the applicant of any omissions and
 1207  request additional information if needed. An application shall
 1208  be complete upon receipt of all requested information. The
 1209  Department of Revenue shall forward all complete applications to
 1210  the department Office of Film and Entertainment within 10
 1211  working days.
 1212         (b) The Department of Revenue shall issue a numbered
 1213  certificate of exemption to a qualified production company
 1214  within 5 working days of the receipt of an approved application,
 1215  application renewal, or application extension from the
 1216  department Office of Film and Entertainment.
 1217         (c) The Department of Revenue may adopt promulgate such
 1218  rules and shall prescribe and publish such forms as may be
 1219  necessary to effectuate the purposes of this section or any of
 1220  the sales tax exemptions which are reasonably related to the
 1221  provisions of this section.
 1222         (d) The Department of Revenue may is authorized to
 1223  establish audit procedures in accordance with the provisions of
 1224  ss. 212.12, 212.13, and 213.34 which relate to the sales tax
 1225  exemption provisions of this section.
 1226         (5) RELATIONSHIP OF TAX EXEMPTIONS AND INCENTIVES TO
 1227  INDUSTRY GROWTH; REPORT TO THE LEGISLATURE.—The department
 1228  Office of Film and Entertainment shall keep annual records from
 1229  the information provided on taxpayer applications for tax
 1230  exemption certificates beginning January 1, 2001. These records
 1231  also must reflect a ratio of the annual amount of sales and use
 1232  tax exemptions under this section, plus the incentives awarded
 1233  pursuant to s. 288.1254 to the estimated amount of funds
 1234  expended by certified productions. In addition, the department
 1235  office shall maintain data showing annual growth in Florida
 1236  based entertainment industry companies and entertainment
 1237  industry employment and wages. The employment information must
 1238  include an estimate of the full-time equivalent positions
 1239  created by each production that received tax credits pursuant to
 1240  s. 288.1254. The department Office of Film and Entertainment
 1241  shall include this information in the annual report for the
 1242  entertainment industry financial incentive program required
 1243  under s. 288.1254(8) s. 288.1254(10).
 1244         Section 8. Subsection (1) of section 288.92, Florida
 1245  Statutes, is amended to read:
 1246         288.92 Divisions of Enterprise Florida, Inc.—
 1247         (1) Enterprise Florida, Inc., may create and dissolve
 1248  divisions as necessary to carry out its mission. Each division
 1249  shall have distinct responsibilities and complementary missions.
 1250  At a minimum, Enterprise Florida, Inc., shall have divisions
 1251  related to the following areas:
 1252         (a) International Trade and Business Development;
 1253         (b) Business Retention and Recruitment;
 1254         (c) Tourism Marketing;
 1255         (d) Minority Business Development; and
 1256         (e) Sports Industry Development; and
 1257         (f) Film and Entertainment.
 1258         Section 9. Paragraph (q) of subsection (5) of section
 1259  212.08, Florida Statutes, is amended to read:
 1260         212.08 Sales, rental, use, consumption, distribution, and
 1261  storage tax; specified exemptions.—The sale at retail, the
 1262  rental, the use, the consumption, the distribution, and the
 1263  storage to be used or consumed in this state of the following
 1264  are hereby specifically exempt from the tax imposed by this
 1265  chapter.
 1266         (5) EXEMPTIONS; ACCOUNT OF USE.—
 1267         (q) Entertainment industry tax credit; authorization;
 1268  eligibility for credits.—The credits against the state sales tax
 1269  authorized pursuant to s. 288.1254 shall be deducted from any
 1270  sales and use tax remitted by the dealer to the department by
 1271  electronic funds transfer and may only be deducted on a sales
 1272  and use tax return initiated through electronic data
 1273  interchange. The dealer shall separately state the credit on the
 1274  electronic return. The net amount of tax due and payable must be
 1275  remitted by electronic funds transfer. If the credit for the
 1276  qualified expenditures is larger than the amount owed on the
 1277  sales and use tax return that is eligible for the credit, the
 1278  unused amount of the credit may be carried forward to a
 1279  succeeding reporting period as provided in s. 288.1254(4)(d) s.
 1280  288.1254(4)(e). A dealer may only obtain a credit using the
 1281  method described in this subparagraph. A dealer is not
 1282  authorized to obtain a credit by applying for a refund.
 1283         Section 10. Paragraph (a) of subsection (1) of section
 1284  220.13, Florida Statutes, is amended to read:
 1285         220.13 “Adjusted federal income” defined.—
 1286         (1) The term “adjusted federal income” means an amount
 1287  equal to the taxpayer’s taxable income as defined in subsection
 1288  (2), or such taxable income of more than one taxpayer as
 1289  provided in s. 220.131, for the taxable year, adjusted as
 1290  follows:
 1291         (a) Additions.—There shall be added to such taxable income:
 1292         1. The amount of any tax upon or measured by income,
 1293  excluding taxes based on gross receipts or revenues, paid or
 1294  accrued as a liability to the District of Columbia or any state
 1295  of the United States which is deductible from gross income in
 1296  the computation of taxable income for the taxable year.
 1297         2. The amount of interest which is excluded from taxable
 1298  income under s. 103(a) of the Internal Revenue Code or any other
 1299  federal law, less the associated expenses disallowed in the
 1300  computation of taxable income under s. 265 of the Internal
 1301  Revenue Code or any other law, excluding 60 percent of any
 1302  amounts included in alternative minimum taxable income, as
 1303  defined in s. 55(b)(2) of the Internal Revenue Code, if the
 1304  taxpayer pays tax under s. 220.11(3).
 1305         3. In the case of a regulated investment company or real
 1306  estate investment trust, an amount equal to the excess of the
 1307  net long-term capital gain for the taxable year over the amount
 1308  of the capital gain dividends attributable to the taxable year.
 1309         4. That portion of the wages or salaries paid or incurred
 1310  for the taxable year which is equal to the amount of the credit
 1311  allowable for the taxable year under s. 220.181. This
 1312  subparagraph shall expire on the date specified in s. 290.016
 1313  for the expiration of the Florida Enterprise Zone Act.
 1314         5. That portion of the ad valorem school taxes paid or
 1315  incurred for the taxable year which is equal to the amount of
 1316  the credit allowable for the taxable year under s. 220.182. This
 1317  subparagraph shall expire on the date specified in s. 290.016
 1318  for the expiration of the Florida Enterprise Zone Act.
 1319         6. The amount taken as a credit under s. 220.195 which is
 1320  deductible from gross income in the computation of taxable
 1321  income for the taxable year.
 1322         7. That portion of assessments to fund a guaranty
 1323  association incurred for the taxable year which is equal to the
 1324  amount of the credit allowable for the taxable year.
 1325         8. In the case of a nonprofit corporation which holds a
 1326  pari-mutuel permit and which is exempt from federal income tax
 1327  as a farmers’ cooperative, an amount equal to the excess of the
 1328  gross income attributable to the pari-mutuel operations over the
 1329  attributable expenses for the taxable year.
 1330         9. The amount taken as a credit for the taxable year under
 1331  s. 220.1895.
 1332         10. Up to nine percent of the eligible basis of any
 1333  designated project which is equal to the credit allowable for
 1334  the taxable year under s. 220.185.
 1335         11. The amount taken as a credit for the taxable year under
 1336  s. 220.1875. The addition in this subparagraph is intended to
 1337  ensure that the same amount is not allowed for the tax purposes
 1338  of this state as both a deduction from income and a credit
 1339  against the tax. This addition is not intended to result in
 1340  adding the same expense back to income more than once.
 1341         12. The amount taken as a credit for the taxable year under
 1342  s. 220.192.
 1343         13. The amount taken as a credit for the taxable year under
 1344  s. 220.193.
 1345         14. Any portion of a qualified investment, as defined in s.
 1346  288.9913, which is claimed as a deduction by the taxpayer and
 1347  taken as a credit against income tax pursuant to s. 288.9916.
 1348         15. The costs to acquire a tax credit pursuant to s.
 1349  288.1254(5) that are deducted from or otherwise reduce federal
 1350  taxable income for the taxable year.
 1351         15.16. The amount taken as a credit for the taxable year
 1352  pursuant to s. 220.194.
 1353         16.17. The amount taken as a credit for the taxable year
 1354  under s. 220.196. The addition in this subparagraph is intended
 1355  to ensure that the same amount is not allowed for the tax
 1356  purposes of this state as both a deduction from income and a
 1357  credit against the tax. The addition is not intended to result
 1358  in adding the same expense back to income more than once.
 1359         Section 11. Subsection (3) of section 220.1899, Florida
 1360  Statutes, is amended to read:
 1361         220.1899 Entertainment industry tax credit.—
 1362         (3) To the extent that the amount of a tax credit exceeds
 1363  the amount due on a return, the balance of the credit may be
 1364  carried forward to a succeeding taxable year pursuant to s.
 1365  288.1254(4)(d) s. 288.1254(4)(e).
 1366         Section 12. Subsection (5) of section 477.0135, Florida
 1367  Statutes, is amended to read:
 1368         477.0135 Exemptions.—
 1369         (5) A license is not required of any individual providing
 1370  makeup, special effects, or cosmetology services to an actor,
 1371  stunt person, musician, extra, or other talent during a
 1372  production recognized by the Department of Economic Opportunity
 1373  the Office of Film and Entertainment as a qualified production
 1374  as defined in s. 288.1254(1). Such services are not required to
 1375  be performed in a licensed salon. Individuals exempt under this
 1376  subsection may not provide such services to the general public.
 1377         Section 13. This act shall take effect July 1, 2014.