Florida 2019 Regular Session Status: In Committee 1 R cosponsors

SB 526 — Entertainment Industry

Last action — Died in Innovation, Industry, and Technology

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2019 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

489 added · 465 removed

489 line(s) added, 465 removed.

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Florida Senate - 2019 SB 526 By Senator Gruters 23-00493-19 2019526__ A bill to be entitled An act relating to the entertainment industry;
Florida Senate - 2019 CS for SB 526 By the Committee on Commerce and Tourism;
and Senator Gruters 577-02468-19 2019526c1 A bill to be entitled An act relating to the entertainment industry;
requiring an applicant that receives funding to make a good faith effort to use existing providers of infrastructure or equipment in this state;
requiring an applicant that receives funding to make a good faith effort to use existing providers of infrastructure or equipment in this state and Florida-resident cast and crew;
establishing application windows for the grant;
requiring the commissioner to set application windows for the grant;
requiring the commissioner to take specified action within a specified timeframe;
requiring the commissioner to take specified action within a reasonable period of time;
specifying that an applicant is only authorized to submit one application per fiscal year unless the applicant is producing certain television programs;
specifying that an applicant is may submit only one application per application window;
requiring the commissioner to select an alternate board member when certain conflicts of interest are present;
requiring the board to determine a score for each applicant’s project using specified criteria;
requiring the board to determine a score for each qualified project using specified criteria;
requiring the board to make a recommendation for certification or rejection of applications within a specified timeframe;
requiring the board to make a recommendation for certification or rejection of a qualified project within a specified timeframe;
requiring the commissioner to determine the priority order and scoring system of the specified criteria with assistance from the board;
requiring the commissioner to determine the priority order and scoring system of the specified criteria with assistance from the board and certain other persons;
requiring the commissioner to take certain actions relating to the certification or denial of applications within a specified timeframe;
requiring the commissioner to take certain actions relating to the certification or rejection of qualified projects in a timely manner;
requiring the department to earmark and set aside funding necessary to fund the total maximum that may be awarded to the qualified projects;
requiring the department to earmark and set aside funding necessary to fund the total maximum that may be awarded to the certified projects, if funds are available;
requiring the commissioner to develop a verification process to verify the actual qualified expenditures of a qualified project after the project’s work in this state is complete;
requiring the commissioner to develop a verification process to verify the actual certified expenditures of a certified project after the project’s work in this state is complete;
requiring that the grant be issued within a specified timeframe upon approval of the final grant amount by the department;
requiring that the grant be issued within a reasonable period of time upon approval of the final grant amount by the department;
requiring qualified projects to allow certain persons to visit the production site upon request of the commissioner and after providing the commissioner with certain notice;
requiring certified projects to allow certain persons to visit the production site upon request of the commissioner and after providing the commissioner with reasonable notice;
66 Be It Enacted by the Legislature of the State of Florida:
69 Be It Enacted by the Legislature of the State of Florida:
68 Section 1. Film, Television, and Digital Media Targeted Grant Program.— (1) CREATION AND PURPOSES OF PROGRAM.—The Film, Television, and Digital Media Targeted Grant Program is created within the Department of Economic Opportunity under the supervision of the Commissioner of Film and Entertainment.
71 Section 1. Film, Television, and Digital Media Targeted Grant Program.— (1) CREATION AND PURPOSES OF PROGRAM.—The Film, Television, and Digital Media Targeted Grant Program is created within the Department of Economic Opportunity under the supervision of the Commissioner of Film and Entertainment.
(b) “Commissioner” means the Commissioner of Film and Entertainment as described in s.
(b) “Certified project” means a qualified project that has been evaluated by the board, determined by the commissioner to meet or exceed the desired economic impact and other criteria of the program, and has grant funds allocated to it based on the project’s estimated qualified expenditures.
(c) “Commissioner” means the Commissioner of Film and Entertainment as described in s.
(c) “Department” means the Department of Economic Opportunity.
(d) “Department” means the Department of Economic Opportunity.
(d) “Digital media project” means a commercial video game that includes at least 30 minutes of game play time.
(e) “Digital media project” means a commercial video game, including an educational video game, which includes at least 30 minutes of game play time.
(e) “Family friendly” means having cross-generational appeal;
(f) “Family friendly” means having cross-generational appeal;
(f) “Film project” means a theatrical, direct-to-video, television, or animated narrative motion picture at least 75 minutes in length.
(g) “Film project” means a theatrical, direct-to-video, television, cable, Internet, streaming service, or animated narrative motion picture at least 75 minutes in length.
(g) “Florida resident” means a person who has a valid Florida driver license or Florida identification card issued under s.
(h) “Florida resident” means a person who has a valid Florida driver license or Florida identification card issued under s.
(h) “Office” means the Office of Film and Entertainment within the department.
(i) “Office” means the Office of Film and Entertainment within the department.
(i) “Principal photography” means, for a film project or television project, the filming of major or significant components of the project which involve lead actors, or, for a digital media project, the period of time during which the work of the majority of the crew is dedicated solely to the project.
(j) “Principal photography” means, for a film project or television project, the filming of major or significant components of the project which involve lead actors, or, for a digital media project, the period of time during which the work of the majority of the crew is dedicated solely to the project.
(j) “Production expenditures” means the costs of tangible and intangible property used and services performed primarily and customarily during the preproduction, production, and postproduction of a project.
1. The term includes, but is not limited to:
a. Wages, salaries, or other compensation, including amounts paid through payroll service companies, for technical and production crews, directors, producers, and performers.
b. Rental expenditures for sound stages, backlots, production, editing, digital effects, sound recording, sets, and set construction.
c. Rental expenditures for equipment, including, but not limited to, cameras and grip or lighting equipment.
d. Expenditures for production meals, craft services, rental cars, and hotels or other rental accommodations.
2. The term does not include any costs associated with airfare, development, marketing, or distribution.
(l)1. “Qualified expenditures” means production expenditures incurred for the following:
(l)1. “Qualified expenditures” means expenditures made solely for preproduction, production, or postproduction of a qualified project which are incurred in this state for any of the following:
which has a physical address, not including a post office box;
which has a physical address in this state, not including a post office box;
b. Payments to Florida residents in the form of salary or wages up to a maximum of $200,000 per resident.
b. Payments to Florida residents in the form of salary or wages up to a maximum of $200,000 per resident, including amounts paid through payroll service companies, and benefits such as pension, health, and welfare payments for technical and production crews, directors, producers, and performers.
For purposes of this sub-subparagraph, payments do not include wages for executives, legal staff, workers, or other paid employees who are employed by the project or its parent or affiliate corporation.
For purposes of this sub-subparagraph, payments do not include wages for executives, legal staff, or other corporate staff who are not employed to work solely on the project.
or 2., expenditures made before qualification for the program, or expenditures related to Internet transactions.
or 2., expenditures made before qualification for the program, expenditures made via Internet transactions, or any costs associated with development, marketing, or distribution.
161 For the purposes of a television project or a film project, the term includes only those qualified expenditures made within 2 fiscal years after the project’s first qualified expenditure.
158 For the purposes of a digital media project, the term includes only those qualified expenditures made within 9 months after the project’s first qualified expenditure.
For the purposes of a digital media project, the term includes only those qualified expenditures made within 9 months after the project’s first qualified expenditure.
(m) “Qualified project” means a film project, television project, or digital media project for which a complete application for the program has been submitted to the commissioner and accepted for consideration by the board.
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(m) “Qualified project” means a film project, television project, or digital media project for which a complete application for the program has been submitted to and certified by the commissioner.
(n) “Television project” means a television pilot program or series that:
(n) “Television project” means a television pilot program or a television series that:
and 3. Has a minimum of seven episodes.
and 3. If the television project is a television series, has a minimum of seven episodes.
185 The term does not include a project deemed by the office to have content that is obscene, as defined in s.
180 The term does not include a project deemed by the office to have content that is obscene, as defined in s.
(o) “Underutilized area” means any county in this state other than Broward County, Dade County, Orange County, or Seminole County.
(o) “Underutilized area” means any county in this state other than Broward County, Miami-Dade County, Orange County, or Seminole County.
2. Is projected to employ a crew, including cast and stand ins, but not including extras, of which at least 60 percent will be Florida residents;
2. Is projected to employ a crew, including cast and stand ins, but not including extras, also known as background performers, of which at least 60 percent will be Florida residents and at least one member will be a military veteran;
3. Is projected to spend at least 60 percent of its total budget in this state;
3. Is projected to spend at least 70 percent of its total production days in this state;
and 4. Will not use the state sales tax exemption.
and 4. Will not receive a certificate of exemption pursuant to s.
(b) A project may receive a grant in the amount of up to 12 percent of its verified qualified expenditures.
288.1258.
(b) A project may receive a grant in the amount of up to 20 percent of its verified qualified expenditures.
A project may not receive more than one bonus, and the total that may be awarded under any grant may not exceed 15 percent of its verified qualified expenditures or $2 million, whichever is less.
A certified project may not receive more than one bonus, and the total that may be awarded under any grant may not exceed 23 percent of its verified qualified expenditures or $2 million, whichever is less.
(c) Each applicant that receives funding must make a good faith effort to use existing providers of infrastructure or equipment in this state, when available, including providers of camera gear, grip and lighting equipment, vehicles, and postproduction services.
(c) A certified project must make a good faith effort to use existing providers of infrastructure or equipment in this state, when available, including providers of camera gear, grip and lighting equipment, vehicles, and postproduction services, and to employ cast and crew who are Florida residents.
(4) APPLICATION WINDOWS.—Applications must be accepted in each fiscal year in which funding is available for the program during two application windows.
(4) APPLICATION WINDOWS.—Applications must be accepted for the program during two application windows each fiscal year.
The first application window is the first 5 business days of each July, and the second application window is the first 5 business days of each January.
The commissioner shall set a start date for both application windows.
However, the first application window must end no later than 5 business days after July 1 and the second must end no later than 5 business days after January 1.
Grant funds not earmarked and set aside for the first application window roll over for use in the second application window.
Grant funds not earmarked and set aside for applicants applying during one application window roll over for use in the next application window.
(b) If all grant funds are earmarked and set aside for qualified projects, additional applications may not be accepted until more funds become available to the program.
(b) If all grant funds are earmarked and set aside for certified projects, additional applications may not be accepted until more funds become available to the program.
A project must have a production start date that is within 6 months after the first day of the application window in which the company submits the application.
A project must have a production start date that is within 6 months after July 1 if applying in the first window or January 1 if applying in the second window.
1. Project-related employment information, including employment numbers for Florida residents;
1. Proof of funding;
2. A detailed budget of planned qualified expenditures;
2. Project-related employment information, including employment numbers for Florida residents;
3. A detailed distribution plan to assist with determining the potential economic impact of the project in this state;
3. A full line-item budget and a detailed qualified expenditures budget;
4. The applicant’s expected total qualified expenditures for wages paid to Florida residents;
4. A detailed distribution plan to assist with determining the potential economic impact of the project in this state;
5. The applicant’s expected total qualified expenditures in this state other than wages;
5. The applicant’s expected total qualified expenditures for wages paid to Florida residents;
6. For a film project or television project, a final script, a production schedule, a Day out of Days report, and a list of the expected shooting locations;
6. The applicant’s expected total qualified expenditures and non-qualified expenditures in this state;
7. For a television project, scripts for two episodes;
7. For a film project or television pilot, a final script, a production schedule, a Day out of Days report, and a list of the expected shooting locations;
8. For a digital media project, a detailed game design document;
8. For a television series, scripts for two episodes, a Day out of Days report, and a list of the expected shooting locations;
and 9. An affirmation signed by the applicant that the information on the application is correct.
9. For a digital media project, a detailed game design document;
(c) Within 15 business days after the last business day of each application window, the commissioner shall:
10. An affirmation signed by the applicant that the information on the application is correct;
and 11. The applicant’s Florida tax identification number.
(c) Within a reasonable period of time after the last business day of each application window, the commissioner shall:
3. Determine the maximum grant amount that each applicant may be eligible for;
3. Determine the maximum grant amount that each eligible applicant may be awarded;
4. Determine whether the applicant’s project is deemed family friendly;
4. Determine whether an eligible applicant’s project is deemed family friendly;
5. Determine whether each applicant or the parent company of the applicant is a corporation registered in this state;
5. Determine the percentage of the applicant’s production, if any, which is proposed to occur in an underutilized county;
6. Contact each applicant with any questions, as necessary;
6. Determine whether each eligible applicant is a corporation registered in this state;
7. Gather any additional information needed to address the criteria specified under subsection (7);
7. Contact each applicant with any questions, as necessary;
and 8. Assemble a package containing the details of each applicant’s project and deliver it to each board member.
8. Gather any additional information needed to address the criteria specified under subsection (7);
(d) An applicant may submit only one application per fiscal year.
9. Assemble a package containing the details of each eligible applicant’s project and deliver it to each board member;
However, an applicant producing a television series may apply for subsequent seasons of that television series within the same fiscal year.
and 10. Give notice to the board of the date and time for when the board must convene to assess each qualified project, as provided for in paragraph (6)(d).
(d) An applicant may submit only one application per application window.
(c) The board shall meet within 15 business days after the commissioner provides application material to all of the members of the board as provided in subparagraph (5)(c)8.
4. If a board member has a conflict of interest with a project under consideration, the commissioner must select an alternate member from the Florida Film and Entertainment Advisory Council.
Subsequent meetings may be held within 10 business days after the initial meeting for that application window.
5. The commissioner shall attend and oversee all meetings.
(c) The board shall meet at the call of the commissioner pursuant to subparagraph (5)(c)10.
The board may hold subsequent meetings after the initial meeting for that application window.
(d)1. The board shall determine a score for each applicant’s project using the criteria specified under subsection (7), with the highest scores going to projects determined to provide the best economic impact and return on investment to the state.
(d)1. The board shall determine a score for each qualified project using the criteria specified under subsection (7), with the highest scores going to projects determined to provide the best economic impact and return on investment to the state.
2. The board shall make a recommendation for certification or rejection of each application to the commissioner within 10 days after the board’s first meeting for that application window.
2. The board shall make a recommendation for certification or rejection of each qualified project to the commissioner within 10 days after the board’s first meeting for that application window.
(7) CRITERIA FOR DETERMINING PROJECT SCORES.— (a) The priority order and scoring system of the criteria specified in paragraph (b) must be determined by the commissioner, with assistance from the board in advance of the first application window.
(7) CRITERIA FOR DETERMINING PROJECT SCORES.— (a) The priority order and scoring system of the criteria specified in paragraph (b) must be determined by the commissioner, with assistance from the board and other persons, as determined by the commissioner, in advance of the first application window.
(b) The board shall use at least the following criteria in determining a project’s score:
(b) The board shall use at least the following criteria in determining a qualified project’s score:
8. Whether the applicant is a corporation registered in this state.
8. Whether the project is family friendly.
9. Whether the project is family friendly.
9. Whether the project has a Florida-resident writer, producer, or star.
10. Whether the project has a Florida-resident writer, producer, or star.
10. Whether a Florida film, television, or digital media school will assist with the production of the project.
11. Whether a Florida film, television, or digital media school will assist with the production of the project.
11. Whether the project leadership team has a successful track record.
12. Whether the project leadership team has a successful track record.
12. The number of Florida-resident veterans hired by the project.
13. The number of Florida-resident veterans hired by the project.
13. The number of Florida film school graduates the project will hire as cast or crew.
14. The number of Florida film school graduates the project has hired as cast or crew.
(8) NOTIFICATION OF DECISION.— (a) After the board makes its recommendations to the commissioner, the commissioner shall, in a timely manner:
(8) NOTIFICATION OF DECISION.— (a) Within 5 business days after the board makes its recommendations to the commissioner, the commissioner shall:
1. Make a final determination on certifying or rejecting each qualified project, giving consideration to the board’s recommendations and scoring.
1. Provide a list of qualified projects to the department which includes the associated maximum grant amounts that the respective applicants may receive.
2. Provide a list of certified projects to the department which includes the associated maximum grant amounts that the respective applicants may receive.
2. Notify each applicant of the specified percentage of qualified expenditures for which the applicant is eligible and the maximum grant amount that the applicant may receive.
3. Notify each certified project of the specified percentage of qualified expenditures for which it is eligible and the maximum grant amount that it may receive.
3. Provide a notice of rejection to each rejected applicant;
4. Provide a notice of rejection to each rejected applicant;
however, the failure to notify an applicant of its rejection does not deem the applicant’s project a qualified project.
however, the failure to notify an applicant of its rejection does not deem the applicant’s project a certified project.
(b) The commissioner shall make the final determination, giving consideration to the board’s recommendations, as to whether an applicant is certified for a grant.
(b) Based on the final determination of the commissioner, the department shall earmark and set aside the amount necessary to fund the total maximum that may be awarded for the certified projects, if funds are available.
(c) Based on the final determination of the commissioner, the department shall earmark and set aside the amount necessary to fund the total maximum that may be awarded for the qualified projects.
(9)(a) VERIFICATION PROCESS.—The commissioner shall develop a process to verify the actual qualified expenditures of a certified project after the project’s work in this state is complete.
(9)(a) VERIFICATION PROCESS.—The commissioner shall develop a process to verify the actual qualified expenditures of a qualified project after the project’s work in this state is complete.
1. Submission to the commissioner, electronically or as a hard copy, by each qualified project within 90 days after making its final qualified expenditure, but not later than 1 year after its production start date of:
1. Submission to the commissioner of at least all of the following information, electronically or in hard copy, or both, by each certified project:
a. Data substantiating each qualified expenditure, which has been audited by an independent certified public accountant licensed in this state, as required by subparagraph 3.;
a. Data substantiating each qualified expenditure, which has been audited by an independent certified public accountant licensed in this state, as required by subparagraph 4.;
and e. The most recent credit list showing where the credits required under subsection (10) will appear.
e. The most recent credit list showing where the credits required under subsection (10) will appear;
2. Signing, and submission to the commissioner, by the qualified project of an affidavit or written declaration signed under the penalty of perjury as specified in s.
f. A cast list and a final crew list with contact information;
and g. For the veteran employed by the project, a copy of his or her DD Form 214, as issued by the United States Department of Defense, or another acceptable form of identification as specified by the Department of Veteran’s Affairs.
2. Signing, and submission to the commissioner, by the certified project of an affidavit or written declaration signed under the penalty of perjury as specified in s.
3. The conduct of a compliance audit, at the qualified project’s expense, by an independent certified public accountant to substantiate each qualified expenditure and submission of a report of the findings of the audit, including substantiating data, to the commissioner within 45 days after the initial receipt of records from the qualified project.
3. The information and affidavit required by subparagraphs 1.
(b) The commissioner shall review the report and data submitted by the certified public accountant within 45 days after receipt of the report and data and report to the department the final verified amount of actual qualified expenditures made by the qualified project and the amount of the grant due to the qualified project.
and 2.
(c) Upon approval by the department of the final grant amount, which may not exceed the maximum specified in the notice provided under subparagraph (8)(a)2., the grant must be issued within 30 days.
must be received by the commissioner within 120 days after the certified project has made its last qualified expenditure, but no later than 1 year after its production start date.
(d) The department shall deduct one-half of 1 percent of the total grant amount before issuing the grant to the qualified project, and such amount must be credited to the department to offset the cost of the compliance review.
Pursuant to the rules adopted by the department, the commissioner may, upon a showing of good cause, grant a one-time extension of this deadline.
(10) MARKETING AND TOURISM REQUIREMENT.— (a) The commissioner shall ensure, as a condition of receiving a grant under this section, that a qualifying project include marketing promoting this state as a tourist destination or film and entertainment production destination.
4. The conduct of a compliance audit, at the certified project’s expense, by an independent certified public accountant who is a resident of this state to substantiate the qualified expenditures, and submission of a report of the findings of the audit, including substantiating data, to the commissioner within a reasonable period of time after the initial receipt of records from the certified project.
(b) The commissioner shall review the report and data submitted by the certified public accountant within a reasonable period of time after receipt of the report and data and report to the department the final verified amount of actual qualified expenditures made by the certified project and the amount of the grant due to the such project.
(c) Upon approval by the department of the final grant amount, which may not exceed the maximum specified in the notice provided under subparagraph (8)(a)3., the grant must be issued within a reasonable period of time.
(d) The department shall deduct one-half of 1 percent of the total grant amount before issuing the grant to the certified project, and such amount must be credited to the department to offset the cost of the compliance review.
(e) At the end of the fiscal year, grant funds that are not allocated to a certified project, and grant funds allocated but not awarded to a certified project, roll over to the next fiscal year.
(10) MARKETING AND TOURISM REQUIREMENT.— (a) The commissioner shall ensure, as a condition of receiving a grant under this section, that a certified project include marketing promoting this state as a tourist destination or film and entertainment production destination.
The commissioner shall provide the logos for the purposes specified in this paragraph, not including the logo for a local digital media office, which must be provided by the applicable office.
The commissioner shall provide the logos for the purposes specified in this paragraph, not including the logo for a local office, which must be provided by the applicable office.
(b) A qualified project must allow the commissioner, or an affiliate, and up to five guests to visit the production site upon the request of the commissioner.
(b) A certified project must allow the commissioner, or an affiliate, and a minimum of two guests to visit the production site upon the request of the commissioner.
Upon such request, the qualified project must give the commissioner at least 10 business days’ notice of a visit date and time that is acceptable to the production.
Upon such request, the certified project must give the commissioner reasonable notice of a visit date and time that is acceptable to the production.
(c) A qualified project must provide at least five preapproved photos of the production to the commissioner and grant the commissioner use of such photos in promoting this state as a film, television, or digital media production location or tourist destination.
(c) A certified project must provide at least five preapproved photos of the production to the commissioner and grant the commissioner free use of such photos in promoting this state as a film, television, or digital media production location or tourist destination.
(11) DISQUALIFICATION.—The department shall disqualify a project if the project:
(11) DISQUALIFICATION.—The department shall disqualify a certified project if the project:
(a) Does not begin principal photography in this state within 6 weeks of the project’s production start date;
(a) Does not begin principal photography in this state within the period beginning 30 days before and ending 90 days after the project’s listed production start date.
(b) Does not abide by the policies, procedures, deadlines, or requirements of the verification process;
Pursuant to department rule, the commissioner may, upon a showing of good cause, grant a one-time extension of this deadline;
(c) Does not start production within 6 weeks before or after the production start date;
(b) Does not abide by the policies, procedures, deadlines, or requirements of the application verification process;
(d) Does not notify the commissioner of any change in the production start date before commencing production;
(c) Does not notify the commissioner of any change in the production start date before commencing production;
or (e) Submits fraudulent information.
or (d) Submits fraudulent information.
(15) EXPIRATION.—The Film, Television, and Digital Media Targeted Grant Program expires June 30, 2020, at which point all remaining appropriated funds not earmarked and set aside for qualified projects must revert to the General Revenue Fund.
(15) EXPIRATION.—The Film, Television, and Digital Media Targeted Grant Program expires June 30, 2022, at which point all remaining appropriated funds not earmarked and set aside for certified projects must revert to the General Revenue Fund.
All remaining appropriated funds must revert to the General Revenue Fund no later than October 31, 2022.
All remaining appropriated funds must revert to the General Revenue Fund no later than October 31, 2023.
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Action History

  1. Died in Innovation, Industry, and Technology

  2. Indefinitely postponed and withdrawn from consideration

  3. CS by Commerce and Tourism read 1st time

  4. Introduced

  5. Now in Innovation, Industry, and Technology

  6. Pending reference review under Rule 4.7(2) - (Committee Substitute)

  7. CS by Commerce and Tourism; YEAS 4 NAYS 0

  8. On Committee agenda-- Commerce and Tourism, 02/19/19, 10:00 am, 110 Senate Building

  9. Referred to Commerce and Tourism; Innovation, Industry, and Technology; Appropriations

  10. Filed

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Frequently asked questions

Who sponsors SB 526?
SB 526 is sponsored by Gruters, Joe (Republican).
What is the current status of SB 526?
This bill died with 2019 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
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