Florida Senate - 2023 SB 476



By Senator Gruters





22-00546-23 2023476__
1 A bill to be entitled
2 An act relating to the Florida First Production
3 Partnership Pilot Program; creating the program within
4 the Department of Economic Opportunity; providing a
5 purpose for the program; defining terms; requiring
6 that film, television, and digital media projects
7 being produced in this state meet specified criteria
8 to be eligible for rebates; authorizing applicants to
9 receive rebates up to a specified amount; requiring a
10 certified project to make a good faith effort to use
11 existing providers of infrastructure or equipment in
12 this state and to employ Florida residents; requiring
13 the Commissioner of Film and Entertainment to set
14 application windows; providing requirements for the
15 department relating to earmarking and setting aside
16 rebate funds; requiring applicants to either accept a
17 partial rebate or reject the partial rebate and drop
18 out of the program under certain circumstances;
19 providing procedures and requirements for applicants;
20 requiring the commissioner to take specified actions
21 within a reasonable period of time; requiring the
22 Florida Film and Entertainment Advisory Council to
23 determine a score for each qualified project using
24 specified criteria; requiring the commissioner to
25 determine the priority order and scoring system of the
26 specified criteria with assistance from the council
27 and certain other persons; requiring the council to
28 use specified criteria; requiring the commissioner to
29 take specified actions in a timely manner relating to
30 the certification or rejection of qualified projects;
31 requiring the department to set aside the amount
32 necessary to fund the rebates, if funds are available;
33 requiring the commissioner to develop a process to
34 verify the actual qualified expenditures and bonus
35 eligibility of a certified project after the project’s
36 work in this state is complete; providing requirements
37 for the verification process; requiring that the
38 rebate be issued within a reasonable period of time
39 upon approval of the final rebate amount; requiring
40 that certain marketing be included with a project;
41 requiring certified projects to allow certain persons
42 to visit the production site upon request of the
43 commissioner and after providing the commissioner with
44 reasonable notice; specifying that the commissioner or
45 his or her affiliate is not required to visit the
46 production site; requiring the department to
47 disqualify a project under certain circumstances;
48 providing for liability and imposing civil penalties
49 for an applicant that submits fraudulent information;
50 requiring the department to adopt rules; requiring the
51 commissioner to provide an annual report to the
52 Governor and the Legislature on a specified date;
53 providing appropriations; providing that certain
54 appropriated funds are not subject to reversion;
55 providing for the expiration of the program; providing
56 an effective date.
57
58 Be It Enacted by the Legislature of the State of Florida:
59
60 Section 1. The Florida First Production Partnership Pilot
61 Program.—
62 (1) CREATION AND PURPOSE OF PROGRAM.—The Florida First
63 Production Partnership Pilot Program is created within the
64 Department of Economic Opportunity.
65 (a) The purpose of the program is to boost this state’s
66 economic prosperity by doing all of the following:
67 1. Encouraging growth of production across this state by
68 requiring the economic participation of local governments,
69 businesses, or entities in production site areas.
70 2. Using a scoring process to determine the best return on
71 investment and economic benefit to the state to certify
72 applicants.
73 3. Creating high-paying jobs in an industry with an average
74 salary at least 50 percent higher than the state average.
75 4. Enhancing tourism by choosing projects that encourage
76 tourists to visit this state.
77 5. Broadening the film, television, and digital media
78 industry’s impact on the state by offering a modest bonus for
79 projects that take place in underutilized areas.
80 6. Encouraging more family-friendly projects in this state.
81 7. Requiring at least 60 percent of the employees hired for
82 any project in this state to be Florida residents.
83 (b) This purpose must be accomplished by providing a
84 limited rebate to projects in areas where local governments,
85 businesses, or entities are offering a local rebate, thereby
86 providing the highest return on investment and economic benefit
87 to the state.
88 (c) To protect program funds, such rebate may not be issued
89 until after a certified project has made all of its expenditures
90 in this state and the expenditures have been verified through a
91 compliance audit.
92 (2) DEFINITIONS.—As used in this section, unless the
93 context otherwise requires, the term:
94 (a) “Certified project” means a qualified project that has
95 been scored by the council, has been determined by the
96 commissioner to meet or exceed the desired economic impact and
97 other criteria of the program, and has rebate funds allocated to
98 it based on the project’s estimated qualified expenditures. The
99 term does not include a project that may be considered obscene
100 as defined in s. 847.001(12), Florida Statutes.
101 (b) “Commissioner” means the Commissioner of Film and
102 Entertainment as described in s. 288.1251(1)(b), Florida
103 Statutes.
104 (c) “Council” means the Florida Film and Entertainment
105 Advisory Council created under s. 288.1252, Florida Statutes.
106 (d) “Department” means the Department of Economic
107 Opportunity.
108 (e) “Digital media project” means a commercial video game,
109 including an educational video game, which includes at least 30
110 minutes of game play time.
111 (f) “Family-friendly” means having cross-generational
112 appeal; being appropriate in theme, content, and language for a
113 broad family audience including children as young as 5 years of
114 age; embodying a responsible resolution of issues; not
115 containing any gratuitous act of drunkenness or violence, or any
116 illicit drug use, sex, nudity, or vulgar or profane language;
117 and not portraying the smoking of any substance in a positive
118 light.
119 (g) “Film project” means a theatrical, direct-to-video,
120 television, cable, Internet, streaming service, or animated
121 narrative motion picture at least 75 minutes in length.
122 (h) “Florida resident” means a person who has a valid
123 Florida driver license or a Florida identification card issued
124 under s. 322.051, Florida Statutes, and has signed an affidavit
125 confirming residency.
126 (i) “Local rebate” means a cash or goods-and-services
127 equivalent offered by a local government, entity, or business in
128 a production area which has a value of no less than 1 percent of
129 the actual state rebate earned.
130 (j) “Office” means the Office of Film and Entertainment
131 within the department.
132 (k) “Principal photography” means, for a film project or
133 television project, the filming of major or significant
134 components of the project which involve lead actors, or, for a
135 digital media project, the period of time during which the work
136 of the majority of the crew is dedicated solely to the project.
137 (l) “Production start date” means:
138 1. For film and television projects, the start date of
139 principal photography, as listed in the project’s application.
140 2. For digital media projects, the start date of work on
141 final storyboards or a later date as specified in the project’s
142 application.
143 (m) “Qualified expenditures” means:
144 1. Expenditures made in this state and paid to Florida
145 residents or to businesses registered in this state and made
146 solely for preproduction, production, or postproduction of the
147 qualified project, including the following:
148 a. Rented or leased goods or services provided by a vendor
149 or supplier in this state which is registered with the
150 Department of State or the Department of Revenue; which has a
151 physical address in this state other than a post office box; and
152 which employs one or more Florida residents on a full-time
153 basis. The term does not include rebilled goods or services
154 provided by an in-state company from out-of-state vendors or
155 suppliers. When services provided by the vendor or supplier
156 include personal services or labor, only personal services or
157 labor provided by Florida residents qualifies.
158 b. Payments to Florida residents in the form of salary or
159 wages up to a maximum of $200,000 per resident, including
160 amounts paid per diem to a worker who is a Florida resident and
161 amounts paid through payroll service companies, and benefits,
162 such as pension, health, and welfare payments, for technical and
163 production crews, directors, producers, and performers. For
164 purposes of this sub-subparagraph, qualified expenditures do not
165 include wages for executives, legal staff, or other corporate
166 staff who are not employed to work solely on the project.
167 c. Rented or leased cars, trucks, and trailers, if the
168 vehicles or trailers are registered with the Florida Department
169 of Highway Safety and Motor Vehicles.
170 d. Purchases of catered meals and on-set craft service
171 supplies.
172 e. Rented hotel rooms or other accommodations for cast or
173 crew.
174 2. The term does not include expenditures not expressly
175 identified in subparagraph 1., expenditures made before
176 qualification for the program, expenditures made via Internet
177 transactions, expenditures for airfare, or any costs associated
178 with development, marketing, or distribution.
179 3. For the purposes of a digital media project, the term
180 includes only those qualified expenditures made within 9 months
181 after the project’s first qualified expenditure.
182 (n) “Qualified project” means a film project, television
183 project, or digital media project that meets the application
184 requirements and for which a complete application for the
185 program has been submitted to the commissioner and accepted for
186 consideration by the office. The term does not include a weather
187 or market program; a sporting event or a sporting event
188 broadcast; a gala; an awards show; a production that solicits
189 funds; a home shopping program; a political program; a gambling
190 related project or production; a concert production; a news or
191 current events show; a sports or sports recap show; a
192 pornographic production; or any project or production deemed to
193 have content that is obscene as defined in s. 847.001(12),
194 Florida Statutes.
195 (o) “Television project” means a television pilot program
196 or a television series that:
197 1. Is a scripted drama, comedy, animation, or reality show;
198 2. Has a runtime to fit, at minimum, a 30-minute program
199 slot, but no longer than required to fit a 60-minute program
200 slot; and
201 3. If the television project is a television series, has a
202 minimum of 7 episodes, or, if the television project is a
203 reality program or series, has a minimum of 10 episodes.
204 (p) “Underutilized area” means any county in this state
205 other than Broward County, Hillsborough County, Miami-Dade
206 County, Orange County, Pinellas County, or Seminole County.
207 (3) REBATE ELIGIBILITY.—
208 (a) To be eligible for a rebate, an applicant must be
209 registered to do business in this state and must be producing a
210 project that:
211 1. Received a local rebate;
212 2. Has projected qualified expenditures of:
213 a. For a film project, at least $1.5 million;
214 b. For a television project, at least $500,000 per episode;
215 or
216 c. For a digital media project, at least $1.5 million;
217 3. Is projected to employ a crew of which at least 60
218 percent will be Florida residents, including cast and stand-ins,
219 but not including extras, also known as background performers,
220 and at least one military veteran who is a Florida resident;
221 4. Is projected to spend at least 70 percent of its total
222 production days in this state; and
223 5. Will not receive a sales tax certificate of exemption
224 pursuant to s. 288.1258, Florida Statutes, for the project.
225 (b) A certified project may receive a rebate in the amount
226 of up to 15 percent of its verified qualified expenditures.
227 Additionally, one additional rebate of 5 percent bonus may be
228 earned if either:
229 1. Sixty percent of the project’s production in this state
230 will take place in an underutilized area; or
231 2. The project’s content is deemed family-friendly.
232 (c) A certified project may not receive more than one
233 bonus. The total that may be awarded under any rebate may not
234 exceed 20 percent of its verified qualified expenditures or $2
235 million, whichever is less.
236 (d) A certified project must make a good faith effort to
237 use existing providers of infrastructure or equipment in this
238 state, when available, including providers of camera gear, grip
239 and lighting equipment, vehicles, and postproduction services,
240 and to employ cast and crew members who are Florida residents.
241 (4) APPLICATION WINDOWS.—Applications must be accepted for
242 the program during two application windows each fiscal year. The
243 commissioner shall set a start date for both application
244 windows. The first application window may begin before the start
245 of the fiscal year and must end no later than 5 business days
246 after July 1, and the second application window must end no
247 later than 5 business days after December 1.
248 (a) The department may not earmark or set aside more than
249 60 percent of any appropriated or rolled-over rebate funds for
250 any given fiscal year for certified projects submitted during
251 the first application window of each fiscal year. Rebate funds
252 not earmarked and set aside for certified projects during one
253 application window roll over for use in the next application
254 window.
255 (b) If all rebate funds are earmarked and set aside for
256 certified projects, additional applications may not be accepted
257 until more funds become available for the program.
258 (c) If, in any application period, only a partial amount of
259 rebate funds is available to certify to a project compared to
260 what it would be eligible for, the applicant must elect to
261 either accept the partial rebate as the maximum certified rebate
262 it would be eligible for or reject it and drop out of the
263 program. In either case, the applicant must notify the
264 commissioner in writing of its decision before the application
265 period ends. If additional rebate funds become available after
266 accepting a partial certification, the certified project is not
267 eligible for additional certification of funds.
268 (5) APPLICATION PROCESS.—
269 (a) A company that plans to produce a film, television, or
270 digital project in this state may submit an application to the
271 commissioner during one of the two application windows. Each
272 fiscal year, a project must have a production start date that is
273 within 6 months after July 1 if applying in the first window or
274 within 6 months after January 1 if applying in the second
275 window.
276 (b) An applicant or its parent company may submit an
277 application for no more than five projects in any single fiscal
278 year. However, only one project per applicant may be certified
279 within a fiscal year, except when a television pilot and its
280 subsequent television series are certified within the same
281 fiscal year.
282 (c) The application must include all of the following:
283 1. Proof of funding.
284 2. Project-related employment information, including
285 employment numbers for Florida residents.