Bill Text: FL S1014 | 2019 | Regular Session | Introduced


Bill Title: Film and Television Production

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-05-03 - Died in Commerce and Tourism [S1014 Detail]

Download: Florida-2019-S1014-Introduced.html
       Florida Senate - 2019                                    SB 1014
       
       
        
       By Senator Taddeo
       
       
       
       
       
       40-00420-19                                           20191014__
    1                        A bill to be entitled                      
    2         An act relating to film and television production;
    3         creating s. 288.1259, F.S.; defining terms;
    4         establishing the Florida Motion Picture Capital
    5         Corporation to encourage the use of this state as a
    6         site for scripted productions by providing financing
    7         to certain productions; providing powers of and
    8         imposing limitations on the corporation; providing
    9         requirements for financing a production; requiring the
   10         corporation to give preference to productions that
   11         meet specified criteria; requiring that the board be
   12         composed of certain members; providing for the
   13         appointment of the board, terms for the board, and
   14         guidelines for the board; prohibiting board members
   15         from discussing certain pending applications with
   16         applicants outside of a board meeting for a specified
   17         period; requiring board members to serve without
   18         compensation; authorizing board members to be
   19         reimbursed for certain expenses; requiring the board
   20         to adopt bylaws, rules, and policies before the
   21         expenditure of funds; requiring the board of directors
   22         to adopt specified criteria for evaluating
   23         applications for financing; requiring the board to
   24         hold regularly scheduled meetings; requiring the board
   25         to create the Florida Motion Picture Capital Account
   26         and maintain exclusive control of the account;
   27         requiring that certain funds be deposited in the
   28         account; authorizing the board to deposit funds with
   29         certain institutions and to invest certain funds in
   30         permissible investments; requiring that certain
   31         dividend payments be redeposited in the account for a
   32         specified purpose; requiring that the corporation’s
   33         operating expenses be kept to a minimum and funded by
   34         appropriations and certain net returns; requiring that
   35         a claim against the account be solely paid from the
   36         account; requiring the board to appoint a president
   37         who meets specified criteria; limiting the salary and
   38         benefits of the president; providing the powers and
   39         duties of the president; requiring the corporation to
   40         provide certain notice of financing contracts or
   41         agreements to the Department of Economic Opportunity
   42         and on the corporation’s website for a specified
   43         period of time; requiring that the notice include
   44         specified information; requiring the corporation to
   45         submit a supplemental report to the department which
   46         contains certain information; requiring the Auditor
   47         General to conduct an annual financial audit of the
   48         corporation and the account; amending s. 20.60, F.S.;
   49         conforming a provision to changes made by the act;
   50         providing an effective date.
   51          
   52  Be It Enacted by the Legislature of the State of Florida:
   53  
   54         Section 1. Section 288.1259, Florida Statutes, is created
   55  to read:
   56         288.1259Florida Motion Picture Capital Corporation.—
   57         (1)DEFINITIONS.—As used in this section, the term:
   58         (a)“Account” means the Florida Motion Picture Capital
   59  Account.
   60         (b)“Board” means the board of directors of the
   61  corporation.
   62         (c)“Corporation” means the Florida Motion Picture Capital
   63  Corporation.
   64         (d)“High-wage jobs” means jobs that pay at least 120
   65  percent of the median wage for the arts, design, entertainment,
   66  sports, and media occupations category as determined by the most
   67  recent State Occupational Employment and Wage Estimates for this
   68  state published by the United States Department of Labor’s
   69  Bureau of Labor Statistics.
   70         (e)“In-state expenditures” means the costs of tangible
   71  property used in this state and services performed by residents
   72  of this state for a scripted production, including preproduction
   73  and postproduction, but excluding costs for development,
   74  marketing, and distribution.
   75         (f)“President” means the chief executive officer of the
   76  corporation.
   77         (g)“Scripted production” or “production” means any of the
   78  following which is produced predominately from a written
   79  screenplay or teleplay: a feature film at least 70 minutes in
   80  length, whether produced for theatrical, television, or direct
   81  to-video release; a television series created to run multiple
   82  seasons having an order for distribution of at least five
   83  episodes; or a miniseries. The term does not include a
   84  commercial, an infomercial, or a political advertisement; a
   85  reality show; a game show; an awards show; a music video; an
   86  industrial or educational film; a weather or market program; a
   87  sporting event or sporting event broadcast; a gala; a production
   88  that solicits funds; a home shopping program; a political
   89  program; a documentary; a gambling-related production; a concert
   90  production; a local, regional, or Internet-distributed-only news
   91  show or current-events show; a sports news or sports recap show;
   92  a video game; a pornographic production; or any production
   93  deemed obscene under chapter 847.
   94         (h)“Television” includes broadcast, cable, and Internet
   95  television.
   96         (2)FLORIDA MOTION PICTURE CAPITAL CORPORATION.—The Florida
   97  Motion Picture Capital Corporation is created as a nonprofit
   98  corporation, to be incorporated under chapter 617 and approved
   99  by the Department of State. The corporation must be organized on
  100  a nonstock basis. The purpose of the corporation is to encourage
  101  the use of this state as a site for scripted productions by
  102  providing financing to such productions. The corporation is
  103  subject to the provisions of chapter 119 relating to public
  104  records and the provisions of chapter 286 relating to public
  105  meetings and records.
  106         (3)POWERS AND LIMITATIONS.—
  107         (a)The corporation is authorized to provide financing to
  108  scripted productions in this state pursuant to the criteria,
  109  bylaws, rules, and policies adopted by the board, which must
  110  include the following:
  111         1.The corporation must provide financing to productions
  112  that it estimates will generate the greatest economic impact to
  113  this state.
  114         2.The amount of financing provided to a production must
  115  not exceed the amount of the production’s in-state expenditures
  116  for that production.
  117         3.The financing provided to a production must rank and
  118  remain pari passu with the highest class of ownership in the
  119  production, such that, in the event of liquidation or
  120  bankruptcy, the corporation’s investment shares the highest
  121  priority with other preferred shareholders.
  122         4.Any financing provided under this section must be less
  123  than one-half of the cost of the production’s total shares or
  124  other ownership interest.
  125         5.The amount of financing provided to any one production
  126  may not exceed 12.5 percent of the sum of the remaining amount
  127  of uncommitted funds in the account plus the amounts of all
  128  outstanding investments in other productions.
  129         6.The corporation may not have any voting rights, creative
  130  control, or management authority over a production receiving
  131  financing under this section.
  132         7.The corporation must limit the return on its investments
  133  by establishing variable limits on returns that account for time
  134  value and reduce returns in exchange for a production’s early
  135  buyout of financing positions. For a production exercising an
  136  early buyout, the corporation must limit its return on
  137  investment to the minimum that is actuarially measurable and
  138  credible and sufficiently related to actual and expected losses
  139  to ensure the corporation’s self-sufficiency and preservation of
  140  the state appropriations provided for the investment.
  141         8.The corporation must establish an application process
  142  and conduct at least two application periods per fiscal year,
  143  providing no more than 40 percent of the total funds in the
  144  account for the fiscal year to productions in any one
  145  application period.
  146         (b)The corporation shall give preference to:
  147         1.Productions that will generate the greatest comparative
  148  economic impact for this state. The corporation shall make a
  149  determination of each project’s comparative economic impact to
  150  this state by comparing the project budgets submitted during the
  151  application period and determining which projects create the
  152  greatest number of high-wage jobs for state residents and
  153  propose the most significant in-state expenditures as a
  154  percentage of total production expenditures.
  155         2.Productions in which the proposed financing by the
  156  corporation is lowest as a percentage of the production’s total
  157  shares or other ownership interest.
  158         3.Productions with the quickest deployment, in which the
  159  production’s in-state expenditures will begin soonest after the
  160  corporation commits to financing.
  161         4.Productions by companies with a verifiable track record
  162  of producing successful productions.
  163         5.Productions by production companies based in this state
  164  or by producers, writers, or directors who are residents of this
  165  state.
  166         6.Productions expected to significantly increase tourism
  167  to this state by using a screenplay or teleplay based on a
  168  Florida story or including recognizable locations in this state.
  169         7.Productions whose development demonstrates the
  170  likelihood of success, including, but not limited to, having a
  171  recognized director, actor, or other creative talent attached.
  172         8.Productions in which the corporation’s financing is
  173  matched from local sources, including, but not limited to,
  174  county or municipal agencies, local film commissions, or other
  175  community resources.
  176         (4)BOARD OF DIRECTORS; POWERS AND DUTIES.—
  177         (a)1.The board must have seven members, each of whom is a
  178  permanent resident of this state. Minority and gender
  179  representation must be considered when making appointments to
  180  the board. The board membership must include:
  181         a.Two members who have experience in investment banking
  182  and funds management focused on feature film and television
  183  production.
  184         b.Three members who have recent experience and are
  185  recognized leaders in the production of feature films or
  186  television in this state. Such members may include, but are not
  187  limited to, producers, directors, production managers or
  188  supervisors, or similar persons in positions of production
  189  leadership.
  190         c.One member who represents businesses that provide
  191  supplies for feature film and television production in this
  192  state, such as small businesses through which productions buy or
  193  rent equipment, house and feed cast and crew, purchase supplies
  194  and raw materials, or build production infrastructure.
  195         d.One member who represents this state’s feature film and
  196  television workforce.
  197         2.The initial board must be appointed as follows:
  198         a.The Florida Venture Forum and the Florida Chamber of
  199  Commerce shall each appoint one member as described in sub
  200  subparagraph 1.a.
  201         b.The Governor, the President of the Senate, and the
  202  Speaker of the House of Representatives shall each appoint one
  203  member as described in sub-subparagraph 1.b.
  204         c.The department shall appoint one member as described in
  205  sub-subparagraph 1.c.
  206         d.The Congress of Motion Picture Associations of Florida
  207  shall appoint one member as described in sub-subparagraph 1.d.
  208         3.Board members shall serve for a term of 3 years;
  209  however, to establish staggered terms, the initial members
  210  appointed by the Florida Chamber of Commerce and the Congress of
  211  Motion Picture Associations of Florida shall be appointed to 1
  212  year terms; the initial members appointed by the President of
  213  the Senate and the Speaker of the House of Representatives shall
  214  be appointed to 2-year terms; and the initial members appointed
  215  by the Governor, the department, and the Florida Venture Forum
  216  shall be appointed to 3-year terms. Board members are eligible
  217  for reappointment. A vacancy must be filled by appointment in
  218  the same manner as the member whose position is being filled
  219  within 30 days after the vacancy occurs. A vacancy that occurs
  220  before the scheduled expiration of the term of a member must be
  221  filled for the remainder of the unexpired term.
  222         (b)Board members are subject to the Code of Ethics for
  223  Public Officers and Employees as set forth in part III of
  224  chapter 112. A board member must abstain from voting and comply
  225  with the disclosure requirements of s. 112.3143 if there appears
  226  to be a possible conflict under s. 112.311, s. 112.313, or s.
  227  112.3143. This paragraph does not prohibit any principal by whom
  228  a board member is retained, as defined in s. 112.3143(1)(a),
  229  from applying for or receiving financing under this section.
  230         (c)With respect to an application for financing which is
  231  currently pending before the corporation or which a board member
  232  knows or reasonably expects will be submitted to the corporation
  233  within 180 days, the board member shall refrain from commenting
  234  on or discussing the application outside of a board meeting with
  235  the applicant or any person retained by the applicant.
  236         (d)Board members shall serve without compensation but may
  237  be reimbursed in accordance with s. 112.061 for all necessary
  238  expenses in the performance of their duties, including attending
  239  board meetings and conducting board business.
  240         (e)The board shall:
  241         1.Before the expenditure of any funds from the account,
  242  adopt bylaws, rules, and policies necessary to carry out the
  243  corporation’s responsibilities under this section.
  244         2.Adopt objective criteria for evaluating applications for
  245  financing scripted productions in this state. The criteria must
  246  require that:
  247         a.The production use a bonded third-party collection
  248  account management firm to ensure that the corporation receives
  249  all funds due from sales proceeds in accordance with a waterfall
  250  agreement included in the corporation’s investment terms.
  251         b.Presales or sales estimates be provided by a sales
  252  agency that has sold at least $50 million in feature films which
  253  are based on the cast and script of the production and which
  254  reflect a value of at least 1.5 times the exposure of the
  255  corporation.
  256         c.The production carry an insurance package from an
  257  insurance company rated “A” or higher by A.M. Best Company which
  258  includes general liability insurance, workers’ compensation, and
  259  key cast and director insurance that covers the costs of
  260  disruption or replacement downtime in the event of illness or
  261  other loss of services from such individuals. If at least 75
  262  percent of the production’s filming schedule occurs after June 1
  263  and before November 30, the production’s insurance package must
  264  include hurricane coverage.
  265         d.The production provide proof of funds for the remaining
  266  budget within 60 days after application approval and place the
  267  remaining budget in escrow before the release of corporation
  268  funds.
  269         e.The lead producer or production company has completed,
  270  sold, and delivered at least five feature films, or the
  271  production must provide a completion bond.
  272         f.The production’s budget, script, and filming schedule
  273  have been evaluated and approved by a production expert selected
  274  by the board.
  275         g.The production budget includes contingency funds in an
  276  amount equal to at least 5 percent of the total budget. Up to 40
  277  percent of the contingency funds may be expended during
  278  production without the approval of the board. The remaining
  279  contingency funds may only be expended with prior approval of
  280  the board.
  281         h.The board release corporation funds to a production in
  282  the following manner:
  283         (I)Fifty percent of corporation funds must be released on
  284  the first day of principal photography.
  285         (II)Twenty-five percent of corporation funds must be
  286  released upon completion of principal photography.
  287         (III)Twenty-five percent of corporation funds must be
  288  released after final picture lock, as that term is generally
  289  understood in the production industry.
  290         i.The production company provide the board with the right
  291  to inspect and audit the weekly cost reports and general ledger
  292  of the production throughout preproduction, production, and
  293  postproduction.
  294         3.Hold regularly scheduled meetings, at least once per
  295  application period, in order to carry out the objectives and
  296  responsibilities of the board.
  297         (5)FLORIDA MOTION PICTURE CAPITAL ACCOUNT.—
  298         (a)The board shall create the Florida Motion Picture
  299  Capital Account for the purpose of receiving state, federal,
  300  county, municipal, and private financial resources, and the
  301  returns from productions financed by allocations from those
  302  resources, and for the purposes of this section. The account
  303  must be under the exclusive control of the board.
  304         (b)Any funds provided to the corporation for financing
  305  productions must be deposited into the account.
  306         (c)The board may deposit the funds of the account with
  307  state or federally chartered financial institutions in this
  308  state and may invest any funds not allocated to a production
  309  during a fiscal year in permissible investments as described in
  310  s. 560.210(1).
  311         (d)Dividend payments received from investments made by the
  312  corporation must be redeposited into the account for use for the
  313  purposes of this section.
  314         (e)The board shall keep the corporation’s operating
  315  expenses to the minimum necessary to ensure its successful
  316  operation. Such operating expenses must be paid from funds
  317  provided for that purpose and from net returns from productions
  318  financed under this section.
  319         (f)Any claims against the account must be paid solely from
  320  the account. Under no circumstances may the credit of the state
  321  be pledged on behalf of the corporation, and the state is not
  322  liable for, and may not be obligated to pay, claims on the
  323  account or against the corporation.
  324         (6)PRESIDENT OF THE CORPORATION.—
  325         (a)The board shall appoint the president of the
  326  corporation, who must be knowledgeable about private and public
  327  financing of feature film and television projects.
  328         (b)The president shall serve at the pleasure of the board,
  329  which shall determine his or her salary and benefits; however,
  330  the president’s salary and benefits may not exceed those
  331  authorized to be paid to the Governor.
  332         (c)The president is the administrative head of the
  333  corporation and shall perform any duties delegated by the board.
  334         (d)The president shall provide corporation support staff
  335  to the board, as requested.
  336         (e)The president shall submit an annual budget to the
  337  board for its approval.
  338         (7)PUBLIC NOTICE OF FINANCING; ANNUAL REPORT; AUDIT.—
  339         (a)The corporation shall notify the department upon final
  340  execution of each contract or agreement by which the corporation
  341  provides financing to a production. The corporation shall also
  342  publish and maintain a copy of the notice on the corporation’s
  343  website while the financing remains outstanding. To provide
  344  adequate notice to the businesses and workforce that supply
  345  feature film and television production in this state, the notice
  346  must include, but need not be limited to, a brief description of
  347  the production, the name of the production company, and, to the
  348  extent available, the names of the director, cinematographer,
  349  production designer, costume designer, and transportation
  350  coordinator.
  351         (b)The corporation shall submit a report to the department
  352  on all corporation activities during the previous fiscal year as
  353  a supplement to the department’s annual report required under s.
  354  20.60. This supplemental report must include:
  355         1.A status report on all projects currently being financed
  356  through the corporation, the number of projects financed
  357  pursuant to this section, the dollar amount of financing
  358  provided to such projects, and the names of the recipients; and
  359         2.Information on the economic impact of the projects
  360  financed by the corporation.
  361         (c)The Auditor General shall conduct an annual financial
  362  audit, as defined in s. 11.45, of the corporation and the
  363  account.
  364         Section 2. Paragraph (b) of subsection (10) of section
  365  20.60, Florida Statutes, is amended to read:
  366         20.60 Department of Economic Opportunity; creation; powers
  367  and duties.—
  368         (10) The department, with assistance from Enterprise
  369  Florida, Inc., shall, by November 1 of each year, submit an
  370  annual report to the Governor, the President of the Senate, and
  371  the Speaker of the House of Representatives on the condition of
  372  the business climate and economic development in the state.
  373         (b) The report must incorporate annual reports of other
  374  programs and entities, including:
  375         1. Information provided by the Department of Revenue under
  376  s. 290.014.
  377         2. Information provided by enterprise zone development
  378  agencies under s. 290.0056 and an analysis of the activities and
  379  accomplishments of each enterprise zone.
  380         3. The Economic Gardening Business Loan Pilot Program
  381  established under s. 288.1081 and the Economic Gardening
  382  Technical Assistance Pilot Program established under s.
  383  288.1082.
  384         4. A detailed report of the performance of the Black
  385  Business Loan Program and a cumulative summary of quarterly
  386  report data required under s. 288.714.
  387         5. The Rural Economic Development Initiative established
  388  under s. 288.0656.
  389         6. The Florida Unique Abilities Partner Program.
  390         7.The Florida Motion Picture Capital Corporation
  391  established under s. 288.1259.
  392         Section 3. This act shall take effect July 1, 2019.

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