House Bill 4147e2

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                                      CS/HB 4147, Second Engrossed



  1                      A bill to be entitled

  2         An act relating to the WAGES Program; creating

  3         s. 414.155, F.S.; providing a relocation

  4         assistance program for families receiving or

  5         eligible to receive WAGES Program assistance;

  6         providing responsibilities of the Department of

  7         Children and Family Services and the Department

  8         of Labor and Employment Security; providing for

  9         a relocation plan and for monitoring of the

10         relocation; requiring agreements restricting

11         application for temporary cash assistance for a

12         specified period; providing exceptions;

13         requiring repayment of temporary cash

14         assistance provided under certain

15         circumstances, and reduced eligibility for

16         future assistance; providing authority for

17         rules; providing legislative intent with

18         respect to employment of WAGES recipients by

19         the food and beverage industry; requiring the

20         Office of Tourism, Trade, and Economic

21         Development within the Executive Office of the

22         Governor to annually certify the total number

23         of specified WAGES recipients; requiring the

24         Department of Business and Professional

25         Regulation to annually recalculate and reduce

26         the surcharge on the sale of alcoholic

27         beverages for consumption on the premises;

28         providing a formula for such recalculation;

29         requiring the department to adopt procedures

30         and establish rules; creating s. 290.00651,

31         F.S.; directing the Office of Tourism, Trade,


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                                      CS/HB 4147, Second Engrossed



  1         and Economic Development to designate a pilot

  2         project area within an enterprise zone;

  3         providing qualifications for such area;

  4         providing that certain businesses in such pilot

  5         project area are eligible for tax credits;

  6         prescribing application criteria and procedures

  7         governing such tax credits; providing

  8         rulemaking authority; requiring a review by the

  9         Office of Program Policy Analysis and

10         Government Accountability; providing for future

11         repeal and revocation of designation as an

12         enterprise zone pilot project area; providing

13         an effective date.

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15  Be It Enacted by the Legislature of the State of Florida:

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17         Section 1.  Section 414.155, Florida Statutes, is

18  created to read:

19         414.155  Relocation assistance program.--

20         (1)  The Legislature recognizes that the need for

21  public assistance may arise because a family is located in an

22  area with limited employment opportunities, because of

23  geographic isolation, because of formidable transportation

24  barriers, because of isolation from their extended family, or

25  because domestic violence interferes with the ability of a

26  parent to maintain self-sufficiency.  Accordingly there is

27  established a program to assist families in relocating to

28  communities with greater opportunities for self-sufficiency.

29         (2)  The relocation assistance program shall involve

30  five steps by the Department of Children and Family Services

31  or the Department of Labor and Employment Security:


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                                      CS/HB 4147, Second Engrossed



  1         (a)  A determination that the family is a WAGES Program

  2  participant or that all requirements of eligibility for the

  3  WAGES Program would likely be met.

  4         (b)  A determination that there is a basis for

  5  believing that relocation will contribute to the ability of

  6  the applicant to achieve self-sufficiency. For example, the

  7  applicant:

  8         1.  Is unlikely to achieve independence at the current

  9  community of residence;

10         2.  Has secured a job that requires relocation to

11  another community;

12         3.  Has a family support network in another community;

13  or

14         4.  Is determined, pursuant to criteria or procedures

15  established by the WAGES Program State Board of Directors, to

16  be a victim of domestic violence who would experience reduced

17  probability of further incidents through relocation.

18         (c)  Establishment of a relocation plan, including a

19  budget and such requirements as are necessary to prevent abuse

20  of the benefit and to provide an assurance that the applicant

21  will relocate. The plan may require that expenditures be made

22  on behalf of the recipient.  However, the plan must include

23  provisions to protect the safety of victims of domestic

24  violence and avoid provisions that place them in anticipated

25  danger.  The payment to defray relocation expenses shall be

26  limited to an amount not to exceed 4 months' temporary cash

27  assistance, based on family size.

28         (d)  A determination, pursuant to criteria adopted by

29  the WAGES Program State Board of Directors, that a Florida

30  community receiving a relocated family has the capacity to

31  provide needed services and employment opportunities.


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                                      CS/HB 4147, Second Engrossed



  1         (e)  Monitoring the relocation.

  2         (3)  A family receiving relocation assistance for

  3  reasons other than domestic violence must sign an agreement

  4  restricting the family from applying for temporary cash

  5  assistance for 6 months, unless an emergency is demonstrated

  6  to the department.  If a demonstrated emergency forces the

  7  family to reapply for temporary cash assistance within 6

  8  months after receiving a relocation assistance payment,

  9  repayment must be made on a prorated basis over an 8-month

10  period and subtracted from any regular payment of temporary

11  cash assistance for which the applicant may be eligible.

12         (4)  The Department of Labor and Employment Security

13  shall have authority to adopt rules pursuant to the

14  Administrative Procedure Act to determine that a community has

15  the capacity to provide services and employment opportunities

16  for a relocated family.

17         (5)  The Department of Children and Family Services

18  shall have authority to adopt rules pursuant to the

19  Administrative Procedure Act to develop and implement

20  relocation plans and to draft an agreement restricting a

21  family from applying for temporary cash assistance within 6

22  months after receiving a relocation assistance payment.

23         Section 2.  The Legislature recognizes that the

24  restaurant industry is uniquely positioned to provide

25  employment opportunities for a significant number of WAGES

26  participants. Therefore, it is the intent of the Legislature

27  to encourage employment of WAGES participants by the food and

28  beverage industry. By March 1, 1999, and each March

29  thereafter, the Office of Tourism, Trade, and Economic

30  Development shall certify the total number of WAGES

31  participants employed by the food and beverage industry during


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                                      CS/HB 4147, Second Engrossed



  1  the prior calendar year using data from the Department of

  2  Labor's WAGES Information System as summarized in the

  3  Employment Information Report prepared by the Bureau of Labor

  4  Market and Performance Information and information from the

  5  Florida Education and Training Placement Information Program

  6  at the Department of Education. To be counted for purposes of

  7  this act, each WAGES participant must have been on welfare for

  8  at least 3 months and must remain off of the welfare rolls for

  9  the three calendar quarters immediately following the calendar

10  quarter in which the individual is first employed by the food

11  and beverage industry. By July 1, 1999, and each year

12  thereafter, the Department of Business and Professional

13  Regulation shall recalculate and reduce the tax rate imposed

14  by s. 561.501, Florida Statutes, by the following formula:

15  each WAGES participant job certified in the report shall be

16  given a value of $3,500 which shall then be multiplied by the

17  total number of WAGES participant jobs certified in the report

18  to arrive at a "gross economic benefit." The gross economic

19  benefit shall then be subtracted from the total amount

20  collected from the tax imposed under s. 561.501, Florida

21  Statutes, and shall not exceed 33 1/3  percent reduction in

22  any given year, to arrive at a "remainder." The Department of

23  Business and Professional Regulation shall then recalculate

24  and reduce the tax rate imposed by s. 561.501, Florida

25  Statutes, to generate the revenue represented by the remainder

26  as set forth above. The Department of Business and

27  Professional Regulation shall adopt procedures for

28  administering these provisions and establish rules pursuant to

29  the provisions of this act.

30         Section 3.  Section 290.00651, Florida Statutes, is

31  created to read:


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                                      CS/HB 4147, Second Engrossed



  1         290.00651  Designation of enterprise zone pilot area.--

  2         (1)  The Office of Tourism, Trade, and Economic

  3  Development shall designate one pilot project area within one

  4  state enterprise zone. The Office of Tourism, Trade, and

  5  Economic Development shall select the pilot area by July 1,

  6  1998, which meets the following qualifications:

  7         (a)  The area is contained within an enterprise zone

  8  that is composed of one contiguous area and is placed in the

  9  category delineated in s. 290.0065(3)(a)1.

10         (b)  The local government having jurisdiction over the

11  enterprise zone grants economic development ad valorem tax

12  exemptions in the enterprise zone pursuant to s. 196.1995, and

13  electrical energy public service tax exemptions pursuant to s.

14  166.231.

15         (c)  The local government having jurisdiction over the

16  enterprise zone has developed a plan for revitalizing the

17  pilot project area or for revitalizing an area within the

18  enterprise zone that contains the pilot project area, and has

19  committed at least $5 million to redevelop an area including

20  the pilot project area.

21         (d)  The pilot project area is contiguous and is

22  limited to no more than 70 acres, or equivalent square miles,

23  to avoid a dilution of additional state assistance effectively

24  concentrating those additional resources on revitalizing the

25  acute area of economic distress.

26         (e)  The pilot project area contains a diverse cluster

27  or grouping of facilities or space for a mix of retail,

28  restaurants, or service related businesses, necessary to an

29  overall revitalization of surrounding neighborhoods through

30  community involvement, investment, and enhancement of

31  employment markets.


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                                      CS/HB 4147, Second Engrossed



  1         (2)(a)  Beginning December 1, 1998, no more than four

  2  businesses located within the pilot project area are eligible

  3  for a credit against any tax due for a taxable year under part

  4  I of chapter 212 and chapter 220.

  5         (b)  The credit shall be computed as $5,000 times the

  6  number of full-time employees of the business and $2,500 times

  7  the number of part-time employees of the business. For

  8  purposes of this section, a person shall be deemed to be

  9  employed by such a business if the person performs duties in

10  connection with the operations of the business on a full-time

11  basis, provided he or she is performing such duties for an

12  average of at least 36 hours per week each month, or a

13  part-time basis, provided he or she is performing such duties

14  for an average of at least 20 hours per week each month

15  through the year. The person must be performing such duties at

16  a business site located in the pilot project area.

17         (c)  The total amount of tax credits that may be

18  granted under this section is $500,000 annually. In the event

19  the Office of Tourism, Trade, and Economic Development

20  receives applications that total more than $500,000 each year,

21  the director shall prorate the amount of tax credit each

22  applicant is eligible to receive to ensure that all eligible

23  applicants receive a tax credit.

24         (d)  In order to be eligible to apply to the Office of

25  Tourism, Trade, and Economic Development for tax credits under

26  this section a business must:

27         1.  Have entered into a contract with the developer of

28  the diverse cluster or grouping of facilities or space located

29  in the pilot project area, governing lease of commercial space

30  in the facility;

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                                      CS/HB 4147, Second Engrossed



  1         2.  Have commenced operations in the facility after

  2  July 1, 1998, and before July 1, 1999; and

  3         3.  Be a business predominantly engaged in activities

  4  usually provided for consideration by firms classified with

  5  the Standard Industrial Classification SIC 5311, SIC 7832, or

  6  SIC 5399.

  7         (e)  All applications for the granting of the tax

  8  credits allowed under this section shall require the prior

  9  approval of the director of the Office of Tourism, Trade, and

10  Economic Development. The director shall provide one submittal

11  date each year for the receipt of applications for such tax

12  credits.

13         (f)  Any business wishing to receive a tax credit

14  pursuant to this section must submit an application to the

15  Office of Tourism, Trade, and Economic Development which sets

16  forth the business name and address, and the number of

17  employees of the business.

18         (g)  The decision of the director shall be in writing,

19  and, if approved, the application shall state the maximum

20  credit allowable to the business. A copy of the decision shall

21  be transmitted to the Executive Director of the Department of

22  Revenue, who shall apply such credit to the tax liability of

23  the business firm.

24         (h)  If the credit granted pursuant to this section is

25  not fully used in any 1 year because of insufficient tax

26  liability on the part of the business, the unused amount may

27  be carried forward for a period not to exceed 5 years.

28         (4)  The Office of Tourism, Trade, and Economic

29  Development is authorized to adopt all rules necessary to

30  administer this section, including rules for the approval or

31  disapproval of applications for tax incentives by businesses.


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                                      CS/HB 4147, Second Engrossed



  1         (5)  The Department of Revenue shall adopt any rules

  2  necessary to ensure the orderly implementation and

  3  administration of this section.

  4         (6)  For purposes of this section, "business" and

  5  "taxable year" shall have the same meaning as in s. 220.03.

  6         (7)  The Office of Program Policy Analysis and

  7  Government Accountability shall review and evaluate the

  8  effectiveness and viability of the pilot project area created

  9  in subsection (1) as part of the review of state enterprise

10  zones performed pursuant to s. 290.015(2). The office shall

11  specifically evaluate whether relief from certain taxes

12  induced new investment and development in the area, increased

13  the number of jobs created or retained in the area, induced

14  the renovation, rehabilitation, restoration, improvement, or

15  new construction of businesses or housing within the area, and

16  contributed to the economic viability and profitability of

17  business and commerce located within the area.

18         (8)  This section shall stand repealed on June 30,

19  2014, and any designation made pursuant to this section shall

20  be revoked on that date.

21         Section 4.  This act shall take effect July 1 of the

22  year in which enacted.

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