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House Bill 0657e1

CS/HB 657, First Engrossed/ntc 1 A bill to be entitled 2 An act relating to rural economic development; 3 amending s. 288.065, F.S.; providing that funds 4 appropriated for the Rural Community 5 Development Revolving Loan Fund are not subject 6 to reversion; amending s. 288.106, F.S.; 7 defining "rural county" and "rural city"; 8 providing for determination of the "average 9 wage in the area" for purposes of the tax 10 refund program for qualified target industry 11 businesses based on private sector wages only; 12 authorizing the Office of Tourism, Trade, and 13 Economic Development to waive the annual wage 14 requirement imposed as a condition of 15 qualifying for review for participation in the 16 program under certain circumstances; providing 17 an effective date. 18 19 Be It Enacted by the Legislature of the State of Florida: 20 21 Section 1. Subsection (4) is added to section 288.065, 22 Florida Statutes, 1996 Supplement, to read: 23 288.065 Rural Community Development Revolving Loan 24 Fund.-- 25 (1) The Rural Community Development Revolving Loan 26 Fund Program is established in the Office of Tourism, Trade, 27 and Economic Development to facilitate the use of existing 28 federal, state, and local financial resources by providing 29 local governments with financial assistance to further promote 30 the economic viability of rural communities. These funds may 31 be used to finance initiatives directed toward maintaining or 1 CODING: Words stricken are deletions; words underlined are additions. CS/HB 657, First Engrossed/ntc 1 developing the economic base of rural communities, especially 2 initiatives addressing employment opportunities for residents 3 of these communities. 4 (2) The program shall provide for long-term loans, 5 loan guarantees, and loan loss reserves to units of local 6 governments within counties with populations less than 50,000, 7 or any county that has a population of 100,000 or less and is 8 contiguous to a county with a population less than 50,000, as 9 determined by the most recent official estimate pursuant to s. 10 186.901, residing in incorporated and unincorporated areas of 11 the county or which contain all or a portion of an area of 12 critical state concern designated pursuant to chapter 380. 13 Requests for loans shall be made by application to the Office 14 of Tourism, Trade, and Economic Development. Loans shall be 15 made pursuant to agreements specifying the terms and 16 conditions agreed to between the local government and the 17 Office of Tourism, Trade, and Economic Development. The loans 18 shall be the legal obligations of the local government. All 19 repayments of principal and interest shall be returned to the 20 loan fund and made available for loans to other applicants. 21 (3) The Office of Tourism, Trade, and Economic 22 Development shall manage the fund, establishing loan practices 23 that must include, but are not limited to, procedures for 24 establishing loan interest rates, uses of funding, application 25 procedures, and application review procedures. The Office of 26 Tourism, Trade, and Economic Development shall have final 27 approval authority for any loan under this section. 28 (4) Notwithstanding the provisions of s. 216.301, 29 funds appropriated for this purpose shall not be subject to 30 reversion. 31 2 CODING: Words stricken are deletions; words underlined are additions. CS/HB 657, First Engrossed/ntc 1 Section 2. Paragraph (b) of subsection (2) of section 2 288.106, Florida Statutes, 1996 Supplement, is amended, 3 paragraphs (r) and (s) are added to said subsection, and 4 paragraph (b) of subsection (4) of said section is amended, to 5 read: 6 288.106 Tax refund program for qualified target 7 industry businesses.-- 8 (2) DEFINITIONS.--As used in this section: 9 (b) "Average private sector wage in the area" means 10 the statewide private sector average wage or the average of 11 all private sector wages and salaries in the county or in the 12 standard metropolitan area in which the business is located. 13 (r) "Rural county" means a county with a population of 14 75,000 or less. 15 (s) "Rural city" means a city with a population of 16 10,000 or less, or a city with a population of greater than 17 10,000 but less than 20,000 which has been determined by the 18 Office of Tourism, Trade, and Economic Development to have 19 economic characteristics such as, but not limited to, a 20 significant percentage of residents on public assistance, a 21 significant percentage of residents with income below the 22 poverty level, or a significant percentage of the city's 23 employment base in agriculture-related industries. 24 (4) APPLICATION AND APPROVAL PROCESS.-- 25 (b) To qualify for review by the office, the 26 application of a target industry business must, at a minimum, 27 establish the following to the satisfaction of the office: 28 1. The jobs proposed to be provided under the 29 application, pursuant to subparagraph (a)4., must pay an 30 estimated annual average wage equaling at least 115 percent of 31 the average private sector wage in the area where the business 3 CODING: Words stricken are deletions; words underlined are additions. CS/HB 657, First Engrossed/ntc 1 is to be located or the statewide private sector average wage. 2 The office may waive this average wage requirement at the 3 request of the local governing body recommending the project 4 and Enterprise Florida, Inc. The wage requirement may only be 5 waived for a project located in a rural city or county or in 6 an enterprise zone and only when the merits of the individual 7 project or the specific circumstances in the community in 8 relationship to the project warrant such action. If the local 9 governing body and Enterprise Florida, Inc. make such a 10 recommendation, it must be transmitted in writing and the 11 specific justification for the waiver recommendation must be 12 explained. If the director elects to waive the wage 13 requirement, the waiver must be stated in writing and the 14 reasons for granting the waiver must be explained. 15 2. The target industry business's project must result 16 in the creation of at least 10 jobs at such project. 17 3. The business activity or product for the 18 applicant's project is within an industry or industries that 19 have been identified by the office to be high-value-added 20 industries that contribute to the area and to the economic 21 growth of the state and that produce a higher standard of 22 living for citizens of this state in the new global economy or 23 that can be shown to make an equivalent contribution to the 24 area and state's economic progress. 25 Section 3. This act shall take effect upon becoming a 26 law. 27 28 29 30 31 4