Florida Senate - 2015 PROPOSED COMMITTEE SUBSTITUTE
Bill No. SB 1214
Ì123970*Î123970
576-02558-15
Proposed Committee Substitute by the Committee on Appropriations
(Appropriations Subcommittee on Transportation, Tourism, and
Economic Development)
1 A bill to be entitled
2 An act relating to economic development; amending s.
3 220.191, F.S.; revising the term “cumulative capital
4 investment”; amending s. 288.0001, F.S.; requiring the
5 Office of Economic and Demographic Research and the
6 Office of Program Policy Analysis and Government
7 Accountability to provide a detailed analysis of the
8 retention of Major League Baseball spring training
9 baseball franchises; amending s. 288.005, F.S.;
10 revising the term “economic benefits”; amending s.
11 288.061, F.S.; requiring the Department of Economic
12 Opportunity to prescribe a specified application form;
13 requiring the incentive application to include
14 specified information; requiring the Office of
15 Economic and Demographic Research to include
16 guidelines for the appropriate application of the
17 department’s internal model in the establishment of
18 the methodology and model it will use to calculate
19 economic benefits; requiring that if the Office of
20 Economic and Demographic Research develops an amended
21 definition of the term “economic benefits,” it must
22 reflect a specified requirement; prohibiting the
23 department from attributing to the business any
24 capital investment made by a business using state
25 funds; requiring the department’s evaluation of the
26 application to include specified information;
27 requiring the department to recommend to the Governor
28 approval or disapproval of a project that will receive
29 funds from specified programs; requiring the
30 department, in recommending a project, to include
31 justification for the project and proposed performance
32 conditions that the project must meet to obtain
33 incentive funds; authorizing the Governor to approve a
34 project without consulting the Legislature if the
35 requested funding is less than a specified amount;
36 requiring the Governor to provide a written
37 description and evaluation of the project to specified
38 persons during a specified timeframe; requiring the
39 recommendation to include proposed payment and
40 performance conditions that the project must meet in
41 order to obtain incentive funds and to avoid
42 sanctions; requiring the Governor to instruct the
43 department to immediately suspend an action or
44 proposed action until the Legislative Budget
45 Commission or the Legislature makes a determination on
46 the project in certain circumstances; requiring a
47 project that requires funding that falls into a
48 specified range to be approved by the Legislative
49 Budget Commission before final approval by the
50 Governor; requiring a project that requires at least a
51 specified amount of funds and that provides a waiver
52 of program requirements to be approved by the
53 Legislative Budget Commission before final approval by
54 the Governor; requiring the department to issue a
55 letter certifying the applicant as qualified for an
56 award upon approval; specifying the funding sources
57 authorized within the definition of the term
58 “project”; requiring the department and the applicant
59 to enter into an agreement or contract upon
60 certification; requiring any agreement or contract
61 that requires capital investment to be made by the
62 business to also require that such investment remain
63 in the state for the duration of the agreement or
64 contract; prohibiting an agreement or contract from
65 having a term of longer than 10 years; authorizing the
66 department to enter into a successive agreement or
67 contract for a specified project under certain
68 circumstances; providing that the restriction on
69 duration of the agreement or contract does not apply
70 in certain circumstances; requiring the agreement or
71 contract to require that the applicant use the
72 workforce information systems in certain
73 circumstances; requiring the department to provide
74 notice, with a written description and evaluation, to
75 the Legislature of any proposed amendment to an
76 agreement or contract; requiring the department to
77 provide notice of the proposed change to specified
78 persons in order to provide an opportunity for review;
79 providing that a proposed amendment to an agreement or
80 contract which reduces projected economic benefits
81 calculated at the time the agreement or contract was
82 executed by a specified amount or more or that results
83 in an economic benefit ratio below a specified level
84 is subject to specified notice and objection
85 procedures; requiring the Governor to instruct the
86 department to immediately suspend an action or
87 proposed action until the Legislative Budget
88 Commission or Legislature makes a determination on the
89 project in certain circumstances; authorizing the
90 department to execute specified contracts and
91 agreements from current or future fiscal year
92 appropriations for specified incentive programs;
93 prohibiting the total amount of actual or projected
94 funds approved for a specified payment by the
95 department from exceeding a specified amount in any
96 fiscal year for certain programs; providing that the
97 specified funding limitation may only be waived by the
98 Legislature in the General Appropriations Act or other
99 legislation; requiring the department to provide
100 specified notice to the Legislature upon the final
101 execution of each contract or agreement; requiring the
102 department to provide to the Legislature a list of
103 projected payments for the following fiscal year and a
104 list of claims actually filed for payment in the
105 following fiscal year by specified dates; prohibiting
106 the department from making a scheduled payment under a
107 contract or agreement for a given fiscal year until
108 the department has validated that the applicant has
109 met the performance requirements of the contract or
110 agreement; providing that the department may only make
111 payments to the applicant; providing for reversion of
112 specified funds that are unexpended by a specified
113 date in a fiscal year; requiring the Legislature to
114 annually appropriate in the General Appropriations Act
115 an amount estimated to sufficiently satisfy scheduled
116 payments in a fiscal year; requiring the department to
117 pay unfunded claims if the amount appropriated by the
118 Legislature proves insufficient to satisfy the
119 scheduled payments in a fiscal year; requiring the
120 department to notify the legislative appropriations
121 committees of any anticipated shortfall for the
122 current fiscal year and of the amount it estimates
123 will be needed to pay claims during the next fiscal
124 year; amending s. 288.095, F.S.; providing that moneys
125 credited to the Economic Development Trust Fund
126 consist of specified funds and interest earnings;
127 restricting the use of moneys in the Economic
128 Development Incentives Account; providing that any
129 balance in the account at the end of the fiscal year
130 remains in the account and is available for carrying
131 out the purposes of the account; creating the Quick
132 Action Closing Fund Escrow Account within the Economic
133 Development Trust Fund; restricting the use of moneys
134 in the Quick Action Closing Fund Escrow Account;
135 providing for the establishment of a continuing
136 appropriation category to make payments from the
137 account; requiring the department to submit a
138 specified budget amendment in certain circumstances;
139 requiring the reversion of specified funds to the
140 State Economic Enhancement and Development Trust Fund
141 in certain circumstances; establishing an expiration
142 date for the continuing appropriation category;
143 providing for reversion of specified funds to the
144 State Economic Enhancement and Development Trust Fund
145 in certain circumstances; providing that any balance
146 in the account at the end of the fiscal year remains
147 in the account and is available for carrying out the
148 purposes of the account; providing for the reversion
149 of any interest earnings in the account to the State
150 Economic Enhancement and Development Trust Fund on a
151 specified date of each fiscal year; providing for
152 expiration of the Quick Action Closing Fund Escrow
153 Account and reversion of the funds remaining in the
154 account; authorizing the department to adopt rules;
155 requiring Enterprise Florida, Inc., to transfer any
156 funds held in an escrow account for approved Quick
157 Action Closing Fund contracts or agreements to the
158 Quick Action Closing Fund Escrow Account within the
159 Economic Development Trust Fund by a specified date;
160 amending s. 288.1045, F.S.; revising the term “average
161 wage in the area”; conforming provisions to changes
162 made by the act; prohibiting the department from
163 certifying any applicant as a qualified applicant in
164 certain circumstances; increasing the number of days
165 the department may extend the filing date; extending
166 the future expiration of an applicant for a tax
167 refund; amending s. 288.106, F.S.; conforming
168 provisions to changes made by the act; revising the
169 definition of the term “local financial support
170 exemption option” to remove a limit on the allowable
171 percentage of total tax refunds; increasing the number
172 of days the department may extend the filing date;
173 revising the limitations on the average private sector
174 wage paid by the business; amending s. 288.107, F.S.;
175 revising the term “eligible business”; defining the
176 term “fixed capital investment”; conforming provisions
177 to changes made by the act; amending s. 288.108, F.S.;
178 conforming provisions to changes made by the act;
179 amending s. 288.1088, F.S.; revising the requirements
180 for projects eligible for receipt of funds from the
181 Quick Action Closing Fund; conforming provisions to
182 changes made by the act; requiring a specified request
183 to be transmitted in writing to the department with an
184 explanation of the specific justification for the
185 request; requiring a decision to be stated in writing
186 with an explanation of the reason for approving the
187 request if the department approves the request;
188 prohibiting the department from waiving more than a
189 specified amount of criteria; revising the information
190 that the department must include in an evaluation of
191 an individual proposal for high-impact business
192 facilities; prohibiting the payment of moneys from the
193 fund to a business until the scheduled goals have been
194 achieved; revising the information that must be
195 included in a contract that sets forth the conditions
196 for payments of moneys from the fund; amending s.
197 288.1089, F.S.; conforming provisions to changes made
198 by the act; amending s. 288.1201, F.S.; conforming
199 provisions to changes made by the act; amending s.
200 288.905, F.S.; providing that the president appointed
201 by the board of directors of Enterprise Florida, Inc.,
202 is subject to confirmation by the Senate; prohibiting
203 a former president from receiving compensation for
204 personally representing a specified entity before the
205 legislative or executive branch of state government;
206 providing applicability; amending s. 288.9937, F.S.;
207 requiring the Office of Program Policy Analysis and
208 Government Accountability to analyze and evaluate
209 certain programs for a specified period; requiring the
210 Office of Economic and Demographic Research to
211 determine the economic benefits of certain programs;
212 requiring the Office of Program Policy Analysis and
213 Government Accountability to identify inefficiencies
214 in certain programs and to recommend changes to such
215 programs; revising the date by which each office must
216 submit a report to certain persons; providing an
217 effective date.
218
219 Be It Enacted by the Legislature of the State of Florida:
220
221 Section 1. Paragraph (b) of subsection (1) of section
222 220.191, Florida Statutes, is amended to read:
223 220.191 Capital investment tax credit.—
224 (1) DEFINITIONS.—For purposes of this section:
225 (b) “Cumulative capital investment” means the total capital
226 investment in land, buildings, and equipment made in connection
227 with a qualifying project during the period from the beginning
228 of construction of the project to the commencement of
229 operations. The term does not include any state or local funds,
230 including funds appropriated to public or private entities, used
231 for capital investment.
232 Section 2. Paragraph (e) of subsection (2) of section
233 288.0001, Florida Statutes, is amended to read:
234 288.0001 Economic Development Programs Evaluation.—The
235 Office of Economic and Demographic Research and the Office of
236 Program Policy Analysis and Government Accountability (OPPAGA)
237 shall develop and present to the Governor, the President of the
238 Senate, the Speaker of the House of Representatives, and the
239 chairs of the legislative appropriations committees the Economic
240 Development Programs Evaluation.
241 (2) The Office of Economic and Demographic Research and
242 OPPAGA shall provide a detailed analysis of economic development
243 programs as provided in the following schedule:
244 (e) Beginning January 1, 2018, and every 3 years
245 thereafter, an analysis of the Sports Development Program
246 established under s. 288.11625 and the retention of Major League
247 Baseball spring training baseball franchises under s. 288.11631.
248 Section 3. Subsection (1) of section 288.005, Florida
249 Statutes, is amended to read:
250 288.005 Definitions.—As used in this chapter, the term:
251 (1) “Economic benefits” means the direct, indirect, and
252 induced gains in state revenues as a percentage of the state’s
253 investment. The state’s investment includes all state funds
254 spent or forgone to benefit the business, including state funds
255 appropriated to public and private entities, state grants, tax
256 exemptions, tax refunds, tax credits, and other state
257 incentives.
258 Section 4. Section 288.061, Florida Statutes, is amended to
259 read:
260 288.061 Economic development incentive application
261 process.—
262 (1) Beginning January 1, 2016, the department shall
263 prescribe a form upon which an application for an incentive must
264 be made. At a minimum, the incentive application must include
265 all of the following:
266 (a) The applicant’s federal employer identification number,
267 reemployment assistance account number, and state sales tax
268 registration number. If such numbers are not available at the
269 time of application, they must be submitted to the department in
270 writing before the disbursement of any economic incentive
271 payments or the grant of any tax credits or refunds.
272 (b) The applicant’s signature.
273 (c) The location in this state at which the project is or
274 will be located.
275 (d) The anticipated commencement date of the project.
276 (e) A description of the type of business activity,
277 product, or research and development undertaken by the
278 applicant, including the six-digit North American Industry
279 Classification System code for all activities included in the
280 project.
281 (f) An attestation verifying that the information provided
282 on the application is true and accurate.
283 (2)(1) Upon receiving a submitted economic development
284 incentive application, the Division of Strategic Business
285 Development of the department of Economic Opportunity and
286 designated staff of Enterprise Florida, Inc., shall review the
287 application to ensure that the application is complete, whether
288 and what type of state and local permits may be necessary for
289 the applicant’s project, whether it is possible to waive such
290 permits, and what state incentives and amounts of such
291 incentives may be available to the applicant. The department
292 shall recommend to the executive director to approve or
293 disapprove an applicant business. If review of the application
294 demonstrates that the application is incomplete, the executive
295 director shall notify the applicant business within the first 5
296 business days after receiving the application.
297 (3)(2) Beginning July 1, 2013, The department shall review
298 and evaluate each economic development incentive application for
299 the economic benefits of the proposed award of state incentives
300 proposed for the project. The term “economic benefits” has the
301 same meaning as in s. 288.005. The Office of Economic and
302 Demographic Research shall establish the methodology and model
303 used to calculate the economic benefits, including guidelines
304 for the appropriate application of the department’s internal
305 model. For purposes of this requirement, an amended definition
306 of the term “economic benefits” may be developed by the Office
307 of Economic and Demographic Research. However, the amended
308 definition must reflect the requirement of s. 288.005 that the
309 state’s investment include all state funds spent or forgone to
310 benefit the business, including state funds appropriated to
311 public and private entities, to the extent that those funds
312 should reasonably be known to the department at the time of
313 approval. In the department’s evaluation of an economic
314 development incentive application, the department may not
315 attribute to the business any capital investment made by the
316 business using state funds.
317 (4) The department’s evaluation of the application must
318 also include all of the following:
319 (a) A financial analysis of the company, including
320 information regarding liens and pending or ongoing litigation,
321 credit ratings, and regulatory filings.
322 (b) A review of any independent evaluations of the company.
323 (c) A review of the historical market performance of the
324 company.
325 (d) A review of the latest audit of the company’s financial
326 statement and the related auditor management letter.
327 (e) A review of any other audits that are related to the
328 internal controls or management of the company.
329 (f) A review of performance in connection with past
330 incentives.
331 (g) Any other review deemed necessary by the department.
332 (5)(a)(3) Except as provided in paragraph (b), within 10
333 business days after the department receives a complete the
334 submitted economic development incentive application, the
335 executive director shall approve or disapprove the application
336 and issue a letter of certification to the applicant which
337 includes a justification of that decision, unless the business
338 requests an extension of that time.
339 (b) Within 10 business days after the department receives a
340 complete economic development incentive application for a
341 project identified in paragraph (d), the executive director
342 shall recommend to the Governor approval or disproval of the
343 application. The recommendation must include a justification for
344 the recommendation and the proposed performance conditions that
345 the project must meet to obtain incentive funds.
346 1. The Governor may approve a project without consulting
347 the Legislature for a project that requires less than $2 million
348 in funding.
349 2. Except as provided in subparagraph 4., for any project
350 that requires funding in the amount of at least $2 million and
351 up to $7.5 million, the Governor shall provide a written
352 description and evaluation of the project to the chair and vice
353 chair of the Legislative Budget Commission at least 10 days
354 before giving final approval for the project. The recommendation
355 must include proposed payment and performance conditions that
356 the project must meet in order to obtain incentive funds and to
357 avoid sanctions. If the chair or vice chair of the Legislative
358 Budget Commission, the President of the Senate, or the Speaker
359 of the House of Representatives advises the Governor, in
360 writing, that his or her planned or proposed action exceeds the
361 delegated authority of the Governor or is contrary to
362 legislative policy or intent, the Governor shall instruct the
363 department to immediately suspend any action planned or proposed
364 until the Legislative Budget Commission or the Legislature makes
365 a determination on the project.
366 3. Any project that requires funding in the amount of $7.5
367 million or greater must be approved by the Legislative Budget
368 Commission before final approval by the Governor.
369 4. Any project that requires funding in the amount of $5
370 million or greater and that provides a waiver of program
371 requirements must be approved by the Legislative Budget
372 Commission prior to final approval by the Governor.
373 (c) Upon approval of a project under paragraph (b), the
374 department shall issue a letter certifying the applicant as
375 qualified for an award.
376 (d) For purposes of paragraphs (b) and (c), the term
377 “project” means a project that will receive funds under any one
378 of the following programs:
379 1. The Local Government Distressed Area Matching Grant
380 Program established by s. 288.0659.
381 2. The qualified defense contractor and space flight
382 business tax refund program established under s. 288.1045.
383 3. The qualified target industry business tax refund
384 authorized under s. 288.106.
385 4. The brownfield redevelopment bonus refund established
386 under s. 288.107.
387 5. High-impact business performance grants established
388 under s. 288.108.
389 6. The Quick Action Closing Fund established under s.
390 288.1088.
391 7. The Innovation Incentive Program created by s. 288.1089.
392 (6)(a) Upon certification, the department and the applicant
393 shall enter into an agreement or contract. The contract or
394 agreement or contract with the applicant must specify the total
395 amount of the award, the performance conditions that must be met
396 to obtain the award, the schedule for payment, and sanctions
397 that would apply for failure to meet performance conditions. Any
398 agreement or contract that requires capital investment to be
399 made by the business must also require that such investment
400 remain in this state for the duration of the agreement or
401 contract. The department may enter into one agreement or
402 contract covering all of the state incentives that are being
403 provided to the applicant. The duration of an agreement or
404 contract may not exceed 10 years. However, the department may
405 enter into a successive agreement or contract for a specific
406 project to extend the initial 10-year term, provided that each
407 successive agreement or contract is contingent upon the
408 successful completion of the previous agreement or contract. If
409 all of the state incentives for one agreement or contract total
410 $20 million or greater, the restriction on the term of the
411 agreement or contract does not apply. The agreement or contract
412 must provide that release of funds is contingent upon sufficient
413 appropriation of funds by the Legislature.
414 (b) The release of funds for the incentive or incentives
415 awarded to the applicant depends upon the statutory requirements
416 of the particular incentive program. For any performance
417 conditions that relate to job creation, the agreement or
418 contract must require that the applicant use the workforce
419 information systems implemented under s. 445.011.
420 (7)(4) The department shall validate contractor performance
421 and report such validation in the annual incentives report
422 required under s. 288.907.
423 (8)(5)(a) The executive director may not approve an
424 economic development incentive application unless the
425 application includes a signed written declaration by the
426 applicant which states that the applicant has read the
427 information in the application and that the information is true,
428 correct, and complete to the best of the applicant’s knowledge
429 and belief.
430 (b) After an economic development incentive application is
431 approved, the awardee shall provide, in each year that the
432 department is required to validate contractor performance, a
433 signed written declaration. The written declaration must state
434 that the awardee has reviewed the information and that the
435 information is true, correct, and complete to the best of the
436 awardee’s knowledge and belief.
437 (9) The department shall provide notice, including a
438 written description and evaluation, to the Legislature of any
439 proposed amendment to an agreement or contract. In order to
440 provide an opportunity for review, at least 3 business days
441 before signing an amendment to an agreement or contract, the
442 department shall provide notice of the proposed change to the
443 chair and vice chair of the Legislative Budget Commission, the
444 President of the Senate, and the Speaker of the House of
445 Representatives. However, a proposed amendment to an agreement
446 or contract that reduces the projected economic benefits
447 calculated at the time the agreement or contract was executed by
448 0.50 or more or that results in an economic benefit ratio below
449 a statutorily required level for receipt of funds is subject to
450 the 10-day notice and objection procedures set forth in this
451 section. Any such amended agreement or contract must also
452 provide for a proportionate reduction in the award amount. If
453 the chair or vice chair of the Legislative Budget Commission,
454 the President of the Senate, or the Speaker of the House of
455 Representatives timely advises the Governor, in writing, that
456 such action or proposed action exceeds the delegated authority
457 of the Governor or is contrary to legislative policy or intent,
458 the Governor shall instruct the department to immediately
459 suspend any action proposed or taken until the Legislative
460 Budget Commission or the Legislature makes a determination on
461 the project.
462 (10)(a) The department is authorized to execute contracts
463 and agreements that obligate the state to make payments from
464 appropriations in the current or a future fiscal year for
465 incentive programs specified in this paragraph. The total amount
466 of actual or projected funds approved for payment by the
467 department based on actual project performance and the schedule
468 of payments for each incentive contract or agreement may not
469 exceed a combined total of $50 million in any fiscal year for
470 all of the following:
471 1. The Local Government Distressed Area Matching Grant
472 Program established under s. 288.0659.
473 2. The qualified defense contractor and space flight
474 business tax refund program established under s. 288.1045.
475 3. The qualified target industry businesses tax refund
476 program established under s. 288.106.
477 4. The brownfield redevelopment bonus refund program
478 established under s. 288.107.
479 5. The high-impact business performance grant program
480 established under s. 288.108.
481 6. The Quick Action Closing Fund projects established under
482 s. 288.1088, with the exception of those projects with funds
483 held in escrow as of June 30, 2015, which are being paid out of
484 the Quick Action Closing Fund Escrow Account under s. 288.095.
485 7. The Innovation Incentive Program established under s.
486 288.1089.
487 (b) The funding limitation under paragraph (a) may only be
488 waived by the Legislature in the General Appropriations Act or
489 other legislation.
490 (c) The department shall provide notice, including an
491 updated description and evaluation, to the Legislature upon the
492 final execution of each contract or agreement.
493 (d) By January 2 of each year, the department shall provide
494 to the Legislature a list of projected payments for the
495 following fiscal year and, by March 1 of each year, the
496 department shall provide to the Legislature a list of claims
497 actually filed for payment in the following fiscal year. The
498 department may not make a scheduled payment under a contract or
499 agreement for a given fiscal year until the department has
500 validated that the applicant has met the performance
501 requirements of the contract or agreement. The department may
502 only make payments to the applicant and not to a third party.
503 Any funds appropriated for scheduled payments in a fiscal year
504 which are unexpended by June 30 of that year shall revert in
505 accordance with s. 216.301 and may not be transferred to an
506 escrow account.
507 (e) The Legislature shall annually appropriate in the
508 General Appropriations Act an amount estimated to be sufficient
509 to satisfy scheduled payments in the coming fiscal year. If the
510 amount appropriated by the Legislature proves insufficient to
511 satisfy the scheduled payments, the department shall pay the
512 unfunded claims from the appropriation for the next fiscal year.
513 By March 1 of each year, the department shall notify the
514 legislative appropriations committees of any such anticipated
515 shortfall for the current fiscal year and of the amount it
516 estimates will be needed to pay claims during the next fiscal
517 year.
518 (11)(6) The department is authorized to adopt rules to
519 implement this section.
520 Section 5. Section 288.095, Florida Statutes, is amended to
521 read:
522 288.095 Economic Development Trust Fund.—
523 (1) The Economic Development Trust Fund is created within
524 the Department of Economic Opportunity. Moneys deposited into
525 the fund must be used only to support the authorized activities
526 and operations of the department. Moneys credited to the trust
527 fund consist of local financial support funds; funds transferred
528 from Enterprise Florida, Inc., which were held in an escrow
529 account on June 30, 2015, for an approved Quick Action Closing
530 Fund project; and interest earnings.
531 (2) There is created, within the Economic Development Trust
532 Fund, the Economic Development Incentives Account. The Economic
533 Development Incentives Account consists of moneys transferred
534 from local governments as local financial support appropriated
535 to the account for purposes of the tax incentives programs
536 authorized under ss. 288.1045, and 288.106, and 288.107 local
537 financial support provided under ss. 288.1045 and 288.106.
538 Moneys in the Economic Development Incentives Account may be
539 used only to pay tax refunds and make other payments authorized
540 under s. 288.1045, s. 288.106, or s. 288.107, and may only be
541 expended pursuant to Legislative appropriation or an approved
542 amendment to the department’s operating budget pursuant to
543 chapter 216. Notwithstanding s. 216.301, and pursuant to s.
544 216.351, any balance in the account at the end of a fiscal year
545 remains in the account and is available for carrying out the
546 purposes of the account shall be subject to the provisions of s.
547 216.301(1)(a).
548 (3)(a) There is created, within the Economic Development
549 Trust Fund, the Quick Action Closing Fund Escrow Account. The
550 Quick Action Closing Fund Escrow Account consists of moneys
551 transferred from Enterprise Florida, Inc., which were held in an
552 escrow account on June 30, 2015, for approved Quick Action
553 Closing Fund contracts or agreements. Moneys in the Quick Action
554 Closing Fund Escrow Account may be used only for the purpose of
555 making payments authorized under s. 288.1088 for projects
556 authorized by these contracts or agreements. A continuing
557 appropriation category shall be established to make payments
558 from the account. If an approved Quick Action Closing Fund
559 project is terminated, the department shall submit a budget
560 amendment to place the budget authority associated with the
561 terminated award into reserve. The funds associated with the
562 terminated award shall immediately revert to the State Economic
563 Enhancement and Development Trust Fund. The continuing
564 appropriation category expires on June 30, 2029.
565 (b) Notwithstanding s. 216.301, and pursuant to s. 216.351,
566 any balance in the account at the end of a fiscal year remains
567 in the account and is available for carrying out the purposes of
568 the account. Any interest earnings in the account revert to the
569 State Economic Enhancement and Development Trust Fund on June 30
570 of each fiscal year. The Quick Action Closing Fund Escrow
571 Account expires on June 30, 2029, and any funds remaining in the
572 account shall revert to the State Economic Enhancement and
573 Development Trust Fund. The department may approve applications
574 for certification pursuant to ss. 288.1045(3) and 288.106.
575 However, the total state share of tax refund payments may not
576 exceed $35 million.
577 (b) The total amount of tax refund claims approved for
578 payment by the department based on actual project performance
579 may not exceed the amount appropriated to the Economic
580 Development Incentives Account for such purposes for the fiscal
581 year. Claims for tax refunds under ss. 288.1045 and 288.106
582 shall be paid in the order the claims are approved by the
583 department. In the event the Legislature does not appropriate an
584 amount sufficient to satisfy the tax refunds under ss. 288.1045
585 and 288.106 in a fiscal year, the department shall pay the tax
586 refunds from the appropriation for the following fiscal year. By
587 March 1 of each year, the department shall notify the
588 legislative appropriations committees of the Senate and House of
589 Representatives of any anticipated shortfall in the amount of
590 funds needed to satisfy claims for tax refunds from the
591 appropriation for the current fiscal year.
592 (c) Moneys in the Economic Development Incentives Account
593 may be used only to pay tax refunds and make other payments
594 authorized under s. 288.1045, s. 288.106, or s. 288.107.
595 (4)(d) The department may adopt rules necessary to carry
596 out the provisions of this subsection, including rules providing
597 for the use of moneys in the Economic Development Incentives
598 Account and for the administration of the Economic Development
599 Incentives Account and the Quick Action Closing Fund Escrow
600 Account.
601 Section 6. By July 10, 2015, Enterprise Florida, Inc.,
602 shall transfer any funds held in an escrow account on June 30,
603 2015, for approved Quick Action Closing Fund contracts or
604 agreements to the Quick Action Closing Fund Escrow Account
605 within the Economic Development Trust Fund.
606 Section 7. Paragraph (b) of subsection (1), paragraphs (a),
607 (c), (e), and (f) of subsection (2), paragraphs (e) and (h) of
608 subsection (3), paragraphs (a),(d), and (e) of subsection (5),
609 and subsection (7) of section 288.1045, Florida Statutes, are
610 amended to read:
611 288.1045 Qualified defense contractor and space flight
612 business tax refund program.—
613 (1) DEFINITIONS.—As used in this section:
614 (b) “Average private sector wage in the area” means the
615 average of all private sector wages and salaries in the state,
616 the county, or in the standard metropolitan area in which the
617 business unit is located.
618 (2) GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.—
619 (a) There shall be allowed, from the Economic Development
620 Trust Fund, a refund to a qualified applicant for the amount of
621 eligible taxes certified by the department which were paid by
622 such qualified applicant. The total amount of refunds for all
623 fiscal years for each qualified applicant shall be determined
624 pursuant to subsection (3). The annual amount of a refund to a
625 qualified applicant shall be determined pursuant to subsection
626 (5).
627 (c) Contingent upon an annual appropriation by the
628 Legislature, The department may not approve not more in tax
629 refunds than the amount appropriated to the Economic Development
630 Trust Fund for tax refunds, for a fiscal year than the amount
631 specified in s. 288.061 pursuant to subsection (5) and s.
632 288.095.
633 (e) After entering into a tax refund agreement pursuant to
634 subsection (4), a qualified applicant may:
635 1. Receive refunds from the account for corporate income
636 taxes due and paid pursuant to chapter 220 by that business
637 beginning with the first taxable year of the business which
638 begins after entering into the agreement.
639 2. Receive refunds from the account for the following taxes
640 due and paid by that business after entering into the agreement:
641 a. Taxes on sales, use, and other transactions paid
642 pursuant to chapter 212.
643 b. Intangible personal property taxes paid pursuant to
644 chapter 199.
645 c. Excise taxes paid on documents pursuant to chapter 201.
646 d. Ad valorem taxes paid, as defined in s. 220.03(1)(a) on
647 June 1, 1996.
648 e. State communications services taxes administered under
649 chapter 202. This provision does not apply to the gross receipts
650 tax imposed under chapter 203 and administered under chapter 202
651 or the local communications services tax authorized under s.
652 202.19.
653
654 However, a qualified applicant may not receive a tax refund
655 pursuant to this section for any amount of credit, refund, or
656 exemption granted such contractor for any of such taxes. If a
657 refund for such taxes is provided by the department, which taxes
658 are subsequently adjusted by the application of any credit,
659 refund, or exemption granted to the qualified applicant other
660 than that provided in this section, the qualified applicant
661 shall reimburse the department Economic Development Trust Fund
662 for the amount of such credit, refund, or exemption. A qualified
663 applicant must notify and tender payment to the department
664 within 20 days after receiving a credit, refund, or exemption,
665 other than that provided in this section.
666 (f) Any qualified applicant who fraudulently claims this
667 refund is liable for repayment of the refund to the department
668 Economic Development Trust Fund plus a mandatory penalty of 200
669 percent of the tax refund which shall be deposited into the
670 General Revenue Fund. Any qualified applicant who fraudulently
671 claims this refund commits a felony of the third degree,
672 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
673 (3) APPLICATION PROCESS; REQUIREMENTS; AGENCY
674 DETERMINATION.—
675 (e) To qualify for review by the department, the
676 application of an applicant must, at a minimum, establish the
677 following to the satisfaction of the department:
678 1. The jobs proposed to be provided under the application,
679 pursuant to subparagraph (b)6., subparagraph (c)6., or
680 subparagraph (j)6., must pay an estimated annual average wage
681 equaling at least 115 percent of the average private sector wage
682 in the area where the project is to be located.
683 2. The consolidation of a Department of Defense contract
684 must result in a net increase of at least 25 percent in the
685 number of jobs at the applicant’s facilities in this state or
686 the addition of at least 80 jobs at the applicant’s facilities
687 in this state.
688 3. The conversion of defense production jobs to nondefense
689 production jobs must result in net increases in nondefense
690 employment at the applicant’s facilities in this state.
691 4. The Department of Defense contract or the space flight
692 business contract cannot allow the business to include the costs
693 of relocation or retooling in its base as allowable costs under
694 a cost-plus, or similar, contract.
695 5. A business unit of the applicant must have derived not
696 less than 60 percent of its gross receipts in this state from
697 Department of Defense contracts or space flight business
698 contracts over the applicant’s last fiscal year, and must have
699 derived not less than an average of 60 percent of its gross
700 receipts in this state from Department of Defense contracts or
701 space flight business contracts over the 5 years preceding the
702 date an application is submitted pursuant to this section. This
703 subparagraph does not apply to any application for certification
704 based on a contract for reuse of a defense-related facility.
705 6. The reuse of a defense-related facility must result in
706 the creation of at least 100 jobs at such facility.
707 7. A new space flight business contract or the
708 consolidation of a space flight business contract must result in
709 net increases in space flight business employment at the
710 applicant’s facilities in this state.
711 (h) The department may not certify any applicant as a
712 qualified applicant when the value of tax refunds to be included
713 in that letter of certification exceeds the available amount of
714 authority to certify a new business in any fiscal year
715 businesses as determined pursuant to s. 288.061(10) in s.
716 288.095(3). A letter of certification that approves an
717 application must specify the maximum amount of a tax refund that
718 is to be available to the contractor for each fiscal year and
719 the total amount of tax refunds for all fiscal years.
720 (5) ANNUAL CLAIM FOR REFUND.—
721 (a) To be eligible to claim any scheduled tax refund,
722 qualified applicants who have entered into a written agreement
723 with the department pursuant to subsection (4) and who have
724 entered into a valid new Department of Defense contract, entered
725 into a valid new space flight business contract, commenced the
726 consolidation of a space flight business contract, commenced the
727 consolidation of a Department of Defense contract, commenced the
728 conversion of defense production jobs to nondefense production
729 jobs, or entered into a valid contract for reuse of a defense
730 related facility must apply by January 31 of each fiscal year to
731 the department for tax refunds scheduled to be paid from the
732 appropriation for the fiscal year that begins on July 1
733 following the January 31 claims-submission date. The department
734 may, upon written request, grant up to a 60-day 30-day extension
735 of the filing date. The application must include a notarized
736 signature of an officer of the applicant.
737 (d) The department, with assistance from the Department of
738 Revenue, shall, by June 30 following the scheduled date for
739 submitting the tax refund claim, specify by written order the
740 approval or disapproval of the tax refund claim and, if
741 approved, the amount of the tax refund that is authorized to be
742 paid to the qualified applicant for the annual tax refund. The
743 department may grant up to a 60-day an extension of this date
744 upon the request of the qualified applicant for the purpose of
745 filing additional information in support of the claim.
746 (e) The total amount of tax refunds approved by the
747 department under this section in any fiscal year may not exceed
748 the amount authorized under s. 288.061(10) s. 288.095(3).
749 (7) EXPIRATION.—An applicant may not be certified as
750 qualified under this section after June 30, 2020 2014. A tax
751 refund agreement existing on that date shall continue in effect
752 in accordance with its terms.
753 Section 8. Paragraphs (c) and (k) of subsection (2),
754 paragraphs (a), (d), (e), and (g) of subsection (3), paragraphs
755 (b) and (e) of subsection (4), and paragraphs (a) and (d)
756 through (g) of subsection (6) of section 288.106, Florida
757 Statutes, are amended to read:
758 288.106 Tax refund program for qualified target industry
759 businesses.—
760 (2) DEFINITIONS.—As used in this section:
761 (c) “Average private sector wage in the area” means the
762 statewide private sector average wage or the average of all
763 private sector wages and salaries in the county or in the
764 standard metropolitan area in which the business is located.
765 (k) “Local financial support exemption option” means the
766 option to exercise an exemption from the local financial support
767 requirement available to an any applicant whose project is
768 located in a brownfield area, a rural city, or a rural
769 community. Any applicant that exercises this option is not
770 eligible for more than 80 percent of the total tax refunds
771 allowed such applicant under this section.
772 (3) TAX REFUND; ELIGIBLE AMOUNTS.—
773 (a) There shall be allowed, from the account, a refund to a
774 qualified target industry business for the amount of eligible
775 taxes certified by the department that were paid by the
776 business. The total amount of refunds for all fiscal years for
777 each qualified target industry business must be determined
778 pursuant to subsection (4). The annual amount of a refund to a
779 qualified target industry business must be determined pursuant
780 to subsection (6).
781 (d) After entering into a tax refund agreement under
782 subsection (5), a qualified target industry business may:
783 1. Receive refunds from the account for the following taxes
784 due and paid by that business beginning with the first taxable
785 year of the business that begins after entering into the
786 agreement:
787 a. Corporate income taxes under chapter 220.
788 b. Insurance premium tax under s. 624.509.
789 2. Receive refunds from the account for the following taxes
790 due and paid by that business after entering into the agreement:
791 a. Taxes on sales, use, and other transactions under
792 chapter 212.
793 b. Intangible personal property taxes under chapter 199.
794 c. Excise taxes on documents under chapter 201.
795 d. Ad valorem taxes paid, as defined in s. 220.03(1).
796 e. State communications services taxes administered under
797 chapter 202. This provision does not apply to the gross receipts
798 tax imposed under chapter 203 and administered under chapter 202
799 or the local communications services tax authorized under s.
800 202.19.
801 (e) However, a qualified target industry business may not
802 receive a refund under this section for any amount of credit,
803 refund, or exemption previously granted to that business for any
804 of the taxes listed in paragraph (d). If a refund for such taxes
805 is provided by the department, which taxes are subsequently
806 adjusted by the application of any credit, refund, or exemption
807 granted to the qualified target industry business other than as
808 provided in this section, the business shall reimburse the
809 department account for the amount of that credit, refund, or
810 exemption. A qualified target industry business shall notify and
811 tender payment to the department within 20 days after receiving
812 any credit, refund, or exemption other than one provided in this
813 section.
814 (g) A qualified target industry business that fraudulently
815 claims a refund under this section:
816 1. Is liable for repayment of the amount of the refund to
817 the department account, plus a mandatory penalty in the amount
818 of 200 percent of the tax refund which shall be deposited into
819 the General Revenue Fund.
820 2. Commits a felony of the third degree, punishable as
821 provided in s. 775.082, s. 775.083, or s. 775.084.
822 (4) APPLICATION AND APPROVAL PROCESS.—
823 (b) To qualify for review by the department, the
824 application of a target industry business must, at a minimum,
825 establish the following to the satisfaction of the department:
826 1.a. The jobs proposed to be created under the application,
827 pursuant to subparagraph (a)4., must pay an estimated annual
828 average wage equaling at least 115 percent of the average
829 private sector wage in the area where the business is to be
830 located or the statewide private sector average wage. The
831 governing board of the local governmental entity providing the
832 local financial support of the jurisdiction where the qualified
833 target industry business is to be located shall notify the
834 department and Enterprise Florida, Inc., which calculation of
835 the average private sector wage in the area must be used as the
836 basis for the business’s wage commitment. In determining the
837 average annual wage, the department shall include only new
838 proposed jobs, and wages for existing jobs shall be excluded
839 from this calculation.
840 b. The department may waive the average wage requirement at
841 the request of the local governing body recommending the project
842 and Enterprise Florida, Inc. The department may waive the wage
843 requirement for a project located in a brownfield area
844 designated under s. 376.80, in a rural city, in a rural
845 community, in an enterprise zone, or for a manufacturing project
846 at any location in the state if the jobs proposed to be created
847 pay an estimated annual average wage equaling at least 100
848 percent of the average private sector wage in the area where the
849 business is to be located, only if the merits of the individual
850 project or the specific circumstances in the community in
851 relationship to the project warrant such action. If the local
852 governing body and Enterprise Florida, Inc., make such a
853 recommendation, it must be transmitted in writing with, and the
854 specific justification for the waiver recommendation must be
855 explained. If the department elects to waive the wage
856 requirement, the waiver must be stated in writing with, and the
857 reasons for granting the waiver must be explained.
858 2. The target industry business’s project must result in
859 the creation of at least 10 jobs at the project and, in the case
860 of an expansion of an existing business, must result in a net
861 increase in employment of at least 10 percent at the business.
862 At the request of the local governing body recommending the
863 project and Enterprise Florida, Inc., the department may waive
864 this requirement for a business in a rural community or
865 enterprise zone if the merits of the individual project or the
866 specific circumstances in the community in relationship to the
867 project warrant such action. If the local governing body and
868 Enterprise Florida, Inc., make such a request, the request must
869 be transmitted in writing with an explanation of, and the
870 specific justification for the request must be explained. If the
871 department elects to grant the request, the grant must be stated
872 in writing and explain, and the reason for granting the request
873 must be explained.
874 3. The business activity or product for the applicant’s
875 project must be within an industry identified by the department
876 as a target industry business that contributes to the economic
877 growth of the state and the area in which the business is
878 located, that produces a higher standard of living for residents
879 of this state in the new global economy, or that can be shown to
880 make an equivalent contribution to the area’s and state’s
881 economic progress.
882 (e) The department may not certify any target industry
883 business as a qualified target industry business if the value of
884 tax refunds to be included in that letter of certification
885 exceeds the available amount of authority to certify a new
886 business in any fiscal year businesses as determined pursuant to
887 s. 288.061(10) in s. 288.095(3). However, Except as provided in
888 paragraph (2)(k), if the commitments of local financial support
889 represent less than 20 percent of the eligible tax refund
890 payments, or to otherwise preserve the viability and fiscal
891 integrity of the program, the department may certify a qualified
892 target industry business to receive tax refund payments of less
893 than the allowable amounts specified in paragraph (3)(b). A
894 letter of certification that approves an application must
895 specify the maximum amount of tax refund that will be available
896 to the qualified industry business in each fiscal year and the
897 total amount of tax refunds that will be available to the
898 business for all fiscal years.
899 (6) ANNUAL CLAIM FOR REFUND.—
900 (a) To be eligible to claim any scheduled tax refund, a
901 qualified target industry business that has entered into a tax
902 refund agreement with the department under subsection (5) must
903 apply by January 31 of each fiscal year to the department for
904 the tax refund scheduled to be paid from the appropriation for
905 the fiscal year that begins on July 1 following the January 31
906 claims-submission date. The department may, upon written
907 request, grant up to a 60-day 30-day extension of the filing
908 date.
909 (d) A tax refund may not be approved for a qualified target
910 industry business unless the required local financial support
911 has been paid into the account for that refund. Except as
912 provided in paragraph (2)(k), if the local financial support
913 provided is less than 20 percent of the approved tax refund, the
914 tax refund must be reduced. In no event may the tax refund
915 exceed an amount that is equal to 5 times the amount of the
916 local financial support received. Further, funding from local
917 sources includes any tax abatement granted to that business
918 under s. 196.1995 or the appraised market value of municipal or
919 county land conveyed or provided at a discount to that business.
920 The amount of any tax refund for such business approved under
921 this section must be reduced by the amount of any such tax
922 abatement granted or the value of the land granted, and the
923 limitations in subsection (3) and paragraph (4)(e) must be
924 reduced by the amount of any such tax abatement or the value of
925 the land granted. A report listing all sources of the local
926 financial support shall be provided to the department when such
927 support is paid to the account.
928 (e) A prorated tax refund, less a 5 percent penalty, shall
929 be approved for a qualified target industry business if all
930 other applicable requirements have been satisfied and the
931 business proves to the satisfaction of the department that:
932 1. It has achieved at least 80 percent of its projected
933 employment; and
934 2. The average wage paid by the business is at least 90
935 percent of that the average wage specified in the tax refund
936 agreement. However, the average wage may not be, but in no case
937 less than 115 percent of the average private sector wage in the
938 area available at the time of certification; or, if the business
939 requested the additional per-job tax refund authorized in
940 paragraph (3)(b) for wages of at least 150 percent of the
941 average private sector wage in the area available at the time of
942 certification, less than 135 percent of the average private
943 sector wage in the area available at the time of certification;,
944 or if the business requested the additional per-job tax refund
945 authorized in paragraph (3)(b) for wages of at least 150 percent
946 or 200 percent of the average private sector wage in the area
947 available at the time of certification, less than 180 percent of
948 the average private sector wage in the area available at the
949 time of certification if the business requested the additional
950 per-job tax refund authorized in paragraph (3)(b) for wages
951 above those levels. The prorated tax refund shall be calculated
952 by multiplying the tax refund amount for which the qualified
953 target industry business would have been eligible, if all
954 applicable requirements had been satisfied, by the percentage of
955 the average employment specified in the tax refund agreement
956 which was achieved, and by the percentage of the average wages
957 specified in the tax refund agreement which was achieved.
958 (f) The department, with such assistance as may be required
959 from the Department of Revenue, shall, by June 30 following the
960 scheduled date for submission of the tax refund claim, specify
961 by written order the approval or disapproval of the tax refund
962 claim and, if approved, the amount of the tax refund that is
963 authorized to be paid to the qualified target industry business
964 for the annual tax refund. The department may grant up to a 60
965 day an extension of this date on the request of the qualified
966 target industry business for the purpose of filing additional
967 information in support of the claim.
968 (g) The total amount of tax refund claims approved by the
969 department under this section in any fiscal year may must not
970 exceed the amount authorized under s. 288.061(10) s. 288.095(3).
971 Section 9. Paragraph (d) of subsection (1), subsection (2),
972 paragraph (b) of subsection (3), and paragraphs (d), (e), and
973 (i) of subsection (4) of section 288.107, Florida Statutes, are
974 amended to read:
975 288.107 Brownfield redevelopment bonus refunds.—
976 (1) DEFINITIONS.—As used in this section:
977 (d) “Eligible business” means:
978 1. A qualified target industry business as defined in s.
979 288.106(2); or
980 2. A business that can demonstrate that it has made a fixed
981 capital investment of at least $2 million in mixed-use business
982 activities, including multiunit housing, commercial, retail, and
983 industrial in brownfield areas eligible for bonus refunds, and
984 that provides benefits to its employees.
985 (2) BROWNFIELD REDEVELOPMENT BONUS REFUND.—Bonus refunds
986 shall be approved by the department as specified in the final
987 order and allowed from the account as follows:
988 (a) A bonus refund of $2,500 shall be allowed to any
989 qualified target industry business as defined in s. 288.106 for
990 each new Florida job created in a brownfield area eligible for
991 bonus refunds which is claimed on the qualified target industry
992 business’s annual refund claim authorized in s. 288.106(6).
993 (b) A bonus refund of up to $2,500 shall be allowed to any
994 other eligible business as defined in subparagraph (1)(d)2. for
995 each new Florida job created in a brownfield area eligible for
996 bonus refunds which is claimed under an annual claim procedure
997 similar to the annual refund claim authorized in s. 288.106(6).
998 The amount of the refund shall be equal to 20 percent of the
999 average annual wage for the jobs created.
1000 (3) CRITERIA.—The minimum criteria for participation in the
1001 brownfield redevelopment bonus refund are:
1002 (b) The completion of a fixed capital investment of at
1003 least $2 million in mixed-use business activities, including
1004 multiunit housing, commercial, retail, and industrial in
1005 brownfield areas eligible for bonus refunds, by an eligible
1006 business applying for a refund under paragraph (2)(b) which
1007 provides benefits to its employees. As used in this paragraph,
1008 the term “fixed capital investment” does not include state funds
1009 used for the capital investment, including state funds
1010 appropriated to public and private entities.
1011 (4) PAYMENT OF BROWNFIELD REDEVELOPMENT BONUS REFUNDS.—
1012 (d) After entering into a tax refund agreement as provided
1013 in s. 288.106 or other similar agreement for other eligible
1014 businesses as defined in paragraph (1)(e), an eligible business
1015 may receive brownfield redevelopment bonus refunds from the
1016 account pursuant to s. 288.106(3)(d).
1017 (e) An eligible business that fraudulently claims a refund
1018 under this section:
1019 1. Is liable for repayment of the amount of the refund to
1020 the department account, plus a mandatory penalty in the amount
1021 of 200 percent of the tax refund, which shall be deposited into
1022 the General Revenue Fund.
1023 2. Commits a felony of the third degree, punishable as
1024 provided in s. 775.082, s. 775.083, or s. 775.084.
1025 (i) The total amount of the bonus refunds approved by the
1026 department under this section in any fiscal year may must not
1027 exceed the total amount specified in s. 288.061(10) appropriated
1028 to the Economic Development Incentives Account for this purpose
1029 for the fiscal year. In the event that the Legislature does not
1030 appropriate an amount sufficient to satisfy projections by the
1031 department for brownfield redevelopment bonus refunds under this
1032 section in a fiscal year, the department shall, not later than
1033 July 15 of such year, determine the proportion of each
1034 brownfield redevelopment bonus refund claim which shall be paid
1035 by dividing the amount appropriated for tax refunds for the
1036 fiscal year by the projected total of brownfield redevelopment
1037 bonus refund claims for the fiscal year. The amount of each
1038 claim for a brownfield redevelopment bonus tax refund shall be
1039 multiplied by the resulting quotient. If, after the payment of
1040 all such refund claims, funds remain in the Economic Development
1041 Incentives Account for brownfield redevelopment tax refunds, the
1042 department shall recalculate the proportion for each refund
1043 claim and adjust the amount of each claim accordingly.
1044 Section 10. Subsection (4) of section 288.108, Florida
1045 Statutes, is amended to read:
1046 288.108 High-impact business.—
1047 (4) AUTHORITY TO APPROVE QUALIFIED HIGH-IMPACT BUSINESS
1048 PERFORMANCE GRANTS.—
1049 (a) The total amount of active performance grants scheduled
1050 for payment by the department in any single fiscal year may not
1051 exceed the amount specified in s. 288.061(10) lesser of $30
1052 million or the amount appropriated by the Legislature for that
1053 fiscal year for qualified high-impact business performance
1054 grants. If the scheduled grant payments are not made in the year
1055 for which they were scheduled in the qualified high-impact
1056 business agreement and are rescheduled as authorized in
1057 paragraph (3)(e), they are, for purposes of this paragraph,
1058 deemed to have been paid in the year in which they were
1059 originally scheduled in the qualified high-impact business
1060 agreement.
1061 (b) If the Legislature does not appropriate an amount
1062 sufficient to satisfy the qualified high-impact business
1063 performance grant payments scheduled for any fiscal year, the
1064 department shall, not later than July 15 of that year, determine
1065 the proportion of each grant payment which may be paid by
1066 dividing the amount appropriated for qualified high-impact
1067 business performance grant payments for the fiscal year by the
1068 total performance grant payments scheduled in all performance
1069 grant agreements for the fiscal year. The amount of each grant
1070 scheduled for payment in that fiscal year must be multiplied by
1071 the resulting quotient. All businesses affected by this
1072 calculation must be notified by August 1 of each fiscal year.
1073 If, after the payment of all the refund claims, funds remain in
1074 the appropriation for payment of qualified high-impact business
1075 performance grants, the department shall recalculate the
1076 proportion for each performance grant payment and adjust the
1077 amount of each claim accordingly.
1078 Section 11. Subsections (2), (3), and (4) of section
1079 288.1088, Florida Statutes, are amended to read:
1080 288.1088 Quick Action Closing Fund.—
1081 (2) There is created within the department the Quick Action
1082 Closing Fund. Except as provided in subsection (3), projects
1083 eligible for receipt of funds from the Quick Action Closing Fund
1084 must shall:
1085 (a) Be in an industry as referenced in s. 288.106.
1086 (b) Have a positive economic benefit ratio of at least 4 to
1087 1 5 to 1.
1088 (c) Be an inducement to the project’s location or expansion
1089 in the state.
1090 (d) Pay an average annual wage of at least 125 percent of
1091 the average areawide or statewide private sector average wage in
1092 the area. As used in this section, the term “average private
1093 sector wage in the area” means the average of all private sector
1094 wages in the county or in the standard metropolitan area in
1095 which the project is located as determined by the department.
1096 (e) Be supported by the local community in which the
1097 project is to be located.
1098 (3)(a) The department and Enterprise Florida, Inc., shall
1099 jointly review applications pursuant to s. 288.061 and determine
1100 the eligibility of each project consistent with the criteria in
1101 subsection (2).
1102 (b) If the local governing body and Enterprise Florida,
1103 Inc., decide to request a waiver of the criteria in subsection
1104 (2), such request must be transmitted in writing to the
1105 department with an explanation of the specific justification for
1106 the request. If the department approves the request, the
1107 decision must be stated in writing with an explanation of the
1108 reason for approving the request.
1109 (c) The department may not waive more than two of the
1110 criteria in subsection (2), and a waiver may
1111 Waiver of these criteria may be considered only under the
1112 following criteria:
1113 1. If the department determines the existence of Based on
1114 extraordinary circumstances;
1115 2. In order to mitigate the impact of the conclusion of the
1116 space shuttle program; or
1117 3. In rural areas of opportunity if the project would
1118 significantly benefit the local or regional economy.
1119 (d) The criteria in subsection (2) may not be waived if:
1120 1. The economic benefit ratio would be below 2 to 1; or
1121 2. The average annual wage would be below 100 percent of
1122 the average private sector wage in the area.
1123 (e) The criteria that the incentive be an inducement to the
1124 project’s location or expansion in this state may not be waived.
1125 (4)(b) The department shall evaluate individual proposals
1126 for high-impact business facilities. Such evaluation must
1127 include, but need not be limited to:
1128 (a)1. A description of the type of facility or
1129 infrastructure, its operations, and the associated product or
1130 service associated with the facility.
1131 (b)2. The minimum and maximum number of full-time
1132 equivalent jobs that will be created by the facility and the
1133 total estimated average annual wages of those jobs or, in the
1134 case of privately developed rural infrastructure, the types of
1135 business activities and jobs stimulated by the investment.
1136 (c)3. The cumulative amount of investment to be dedicated
1137 to the facility within a specified period.
1138 (d)4. A statement of any special impacts the facility is
1139 expected to stimulate in a particular business sector in the
1140 state or regional economy or in the state’s universities and
1141 community colleges.
1142 (e)5. A statement of the role the incentive is expected to
1143 play in the decision of the applicant business to locate or
1144 expand in this state or for the private investor to provide
1145 critical rural infrastructure.
1146 (f)6. A report evaluating the quality and value of the
1147 company submitting a proposal. The report must include:
1148 1.a. A financial analysis of the company, including an
1149 evaluation of the company’s short-term liquidity ratio as
1150 measured by its assets to liability, the company’s profitability
1151 ratio, and the company’s long-term solvency as measured by its
1152 debt-to-equity ratio;
1153 2.b. The historical market performance of the company;
1154 3.c. A review of any independent evaluations of the
1155 company;
1156 4.d. A review of the latest audit of the company’s
1157 financial statement and the related auditor’s management letter;
1158 and
1159 5.e. A review of any other types of audits that are related
1160 to the internal and management controls of the company.
1161 (c)1. Within 7 business days after evaluating a project,
1162 the department shall recommend to the Governor approval or
1163 disapproval of a project for receipt of funds from the Quick
1164 Action Closing Fund. In recommending a project, the department
1165 shall include proposed performance conditions that the project
1166 must meet to obtain incentive funds.
1167 2. The Governor may approve projects without consulting the
1168 Legislature for projects requiring less than $2 million in
1169 funding.
1170 3. For projects requiring funding in the amount of $2
1171 million to $5 million, the Governor shall provide a written
1172 description and evaluation of a project recommended for approval
1173 to the chair and vice chair of the Legislative Budget Commission
1174 at least 10 days prior to giving final approval for a project.
1175 The recommendation must include proposed performance conditions
1176 that the project must meet in order to obtain funds.
1177 4. If the chair or vice chair of the Legislative Budget
1178 Commission or the President of the Senate or the Speaker of the
1179 House of Representatives timely advises the Executive Office of
1180 the Governor, in writing, that such action or proposed action
1181 exceeds the delegated authority of the Executive Office of the
1182 Governor or is contrary to legislative policy or intent, the
1183 Executive Office of the Governor shall void the release of funds
1184 and instruct the department to immediately change such action or
1185 proposed action until the Legislative Budget Commission or the
1186 Legislature addresses the issue. Notwithstanding such
1187 requirement, any project exceeding $5 million must be approved
1188 by the Legislative Budget Commission prior to the funds being
1189 released.
1190 (5)(d) Upon the approval of the Governor, the department
1191 and the business shall enter into a contract that sets forth the
1192 conditions for payment of moneys from the fund. Such payment may
1193 not be made to the business until the scheduled goals have been
1194 achieved. The contract must include the total amount of funds
1195 awarded; the minimum and maximum amount of funds that may be
1196 awarded, if applicable; the performance conditions that must be
1197 met to obtain the award, including, but not limited to, net new
1198 employment in the state, average salary, and total capital
1199 investment incurred by the business, and the minimum and maximum
1200 number of jobs that will be created, if applicable; demonstrate
1201 a baseline of current service and a measure of enhanced
1202 capability; the methodology for validating performance; the
1203 schedule of payments from the fund; and sanctions for failure to
1204 meet performance conditions. The contract must provide that
1205 payment of moneys from the fund is contingent upon sufficient
1206 appropriation of funds by the Legislature.
1207 (6)(e) The department shall validate contractor performance
1208 and report such validation in the annual incentives report
1209 required under s. 288.907.
1210 (4) Funds appropriated by the Legislature for purposes of
1211 implementing this section shall be placed in reserve and may
1212 only be released pursuant to the legislative consultation and
1213 review requirements set forth in this section.
1214 Section 12. Paragraph (b) of subsection (2), paragraphs (a)
1215 and (d) of subsection (4), subsection (7), and paragraph (b) of
1216 subsection (8) of section 288.1089, Florida Statutes, are
1217 amended to read:
1218 288.1089 Innovation Incentive Program.—
1219 (2) As used in this section, the term:
1220 (b) “Average private sector wage in the area” means the
1221 statewide average wage in the private sector or the average of
1222 all private sector wages in the county or in the standard
1223 metropolitan area in which the project is located as determined
1224 by the department.
1225 (4) To qualify for review by the department, the applicant
1226 must, at a minimum, establish the following to the satisfaction
1227 of the department:
1228 (a) The jobs created by the project must pay an estimated
1229 annual average wage equaling at least 130 percent of the average
1230 private sector wage in the area. The department may waive this
1231 average wage requirement at the request of Enterprise Florida,
1232 Inc., for a project located in a rural area, a brownfield area,
1233 or an enterprise zone, when the merits of the individual project
1234 or the specific circumstances in the community in relationship
1235 to the project warrant such action. A recommendation for waiver
1236 by Enterprise Florida, Inc., must include a specific
1237 justification for the waiver and be transmitted to the
1238 department in writing. If the department elects to waive the
1239 wage requirement, the waiver must be stated in writing and
1240 explain and the reasons for granting the waiver must be
1241 explained.
1242 (d) For an alternative and renewable energy project in this
1243 state, the project must:
1244 1. Demonstrate a plan for significant collaboration with an
1245 institution of higher education;
1246 2. Provide the state, at a minimum, a cumulative break-even
1247 economic benefit within a 20-year period;
1248 3. Include matching funds provided by the applicant or
1249 other available sources. The match requirement may be reduced or
1250 waived in rural areas of opportunity or reduced in rural areas,
1251 brownfield areas, and enterprise zones;
1252 4. Be located in this state; and
1253 5. Provide at least 35 direct, new jobs that pay an
1254 estimated annual average wage that equals at least 130 percent
1255 of the average private sector wage in the area.
1256 (7) Upon receipt of the evaluation and recommendation from
1257 the department, the Governor shall approve or deny an award
1258 pursuant to s. 288.061. In recommending approval of an award,
1259 the department shall include proposed performance conditions
1260 that the applicant must meet in order to obtain incentive funds
1261 and any other conditions that must be met before the receipt of
1262 any incentive funds. The Governor shall consult with the
1263 President of the Senate and the Speaker of the House of
1264 Representatives before giving approval for an award. Upon review
1265 and approval of an award by the Legislative Budget Commission,
1266 the Executive Office of the Governor shall release the funds.
1267 (8)
1268 (b) Additionally, agreements signed on or after July 1,
1269 2009, must include the following provisions:
1270 1. Notwithstanding subsection (4), a requirement that the
1271 jobs created by the recipient of the incentive funds pay an
1272 annual average wage at least equal to the relevant industry’s
1273 annual average wage or at least 130 percent of the average
1274 private sector wage in the area, whichever is greater.
1275 2. A reinvestment requirement. Each recipient of an award
1276 shall reinvest up to 15 percent of net royalty revenues,
1277 including revenues from spin-off companies and the revenues from
1278 the sale of stock it receives from the licensing or transfer of
1279 inventions, methods, processes, and other patentable discoveries
1280 conceived or reduced to practice using its facilities in Florida
1281 or its Florida-based employees, in whole or in part, and to
1282 which the recipient of the grant becomes entitled during the 20
1283 years following the effective date of its agreement with the
1284 department. Each recipient of an award also shall reinvest up to
1285 15 percent of the gross revenues it receives from naming
1286 opportunities associated with any facility it builds in this
1287 state. Reinvestment payments shall commence no later than 6
1288 months after the recipient of the grant has received the final
1289 disbursement under the contract and shall continue until the
1290 maximum reinvestment, as specified in the contract, has been
1291 paid. Reinvestment payments shall be remitted to the department
1292 for deposit in the Biomedical Research Trust Fund for companies
1293 specializing in biomedicine or life sciences, or in the Economic
1294 Development Trust Fund for companies specializing in fields
1295 other than biomedicine or the life sciences. If these trust
1296 funds no longer exist at the time of the reinvestment, the
1297 state’s share of reinvestment shall be deposited in their
1298 successor trust funds as determined by law. Each recipient of an
1299 award shall annually submit a schedule of the shares of stock
1300 held by it as payment of the royalty required by this paragraph
1301 and report on any trades or activity concerning such stock. Each
1302 recipient’s reinvestment obligations survive the expiration or
1303 termination of its agreement with the state.
1304 3. Requirements for the establishment of internship
1305 programs or other learning opportunities for educators and
1306 secondary, postsecondary, graduate, and doctoral students.
1307 4. A requirement that the recipient submit quarterly
1308 reports and annual reports related to activities and performance
1309 to the department, according to standardized reporting periods.
1310 5. A requirement for an annual accounting to the department
1311 of the expenditure of funds disbursed under this section.
1312 6. A process for amending the agreement.
1313 Section 13. Subsection (2) of section 288.1201, Florida
1314 Statutes, is amended to read:
1315 288.1201 State Economic Enhancement and Development Trust
1316 Fund.—
1317 (2) The trust fund is established for use as a depository
1318 for funds to be used for the purposes specified in subsection
1319 (1). Moneys to be credited to the trust fund shall consist of
1320 documentary stamp tax proceeds as specified in law, local
1321 financial support funds, interest earnings, reversions specified
1322 in law, and cash advances from other trust funds. Funds shall be
1323 expended only pursuant to legislative appropriation or an
1324 approved amendment to the department’s operating budget pursuant
1325 to the provisions of chapter 216.
1326 Section 14. Subsection (1) is amended and subsection (5) is
1327 added to section 288.905, Florida Statutes, to read:
1328 288.905 President and employees of Enterprise Florida,
1329 Inc.—
1330 (1) The board of directors of Enterprise Florida, Inc.,
1331 shall appoint a president, subject to confirmation by the
1332 Senate, who shall serve at the pleasure of the Governor. The
1333 president shall also be known as the “secretary of commerce” and
1334 shall serve as the Governor’s chief negotiator for business
1335 recruitment and business expansion.
1336 (5) For a period of 2 years following vacation of office, a
1337 former president may not receive compensation for personally
1338 representing before the legislative or executive branch of state
1339 government an entity that applied for funding, received state
1340 funds, or negotiated with Enterprise Florida, Inc., for the
1341 receipt of state funds, regardless of whether the entity
1342 actually received any state funds.
1343 Section 15. The changes made to s. 288.905, Florida
1344 Statutes, apply only to presidents who are appointed or
1345 reappointed on or after July 1, 2015.
1346 Section 16. Section 288.9937, Florida Statutes, is amended
1347 to read:
1348 288.9937 Evaluation of programs.—The Office of Economic and
1349 Demographic Research and the Office of Program Policy Analysis
1350 and Government Accountability shall analyze and , evaluate, and
1351 determine the economic benefits, as defined in s. 288.005, of
1352 the first 3 years of the Microfinance Loan Program and the
1353 Microfinance Guarantee Program. The analysis by the Office of
1354 Economic and Demographic Research must also determine the
1355 economic benefits, as defined in s. 288.005, evaluate the number
1356 of jobs created, the increase or decrease in personal income,
1357 and the impact on state gross domestic product from the direct,
1358 indirect, and induced effects of the state’s investment. The
1359 analysis by the Office of Program Policy Analysis and Government
1360 Accountability must also identify any inefficiencies in the
1361 programs and provide recommendations for changes to the
1362 programs. Each The office shall submit a report to the President
1363 of the Senate and the Speaker of the House of Representatives by
1364 January 15 1, 2018. This section expires January 31, 2018.
1365 Section 17. This act shall take effect July 1, 2015.