Senate Bill 1560c1

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    Florida Senate - 1999                           CS for SB 1560

    By the Committee on Commerce and Economic Opportunities; and
    Senator Kirkpatrick




    310-1954A-99

  1                      A bill to be entitled

  2         An act relating to economic development;

  3         providing a short title; providing intent;

  4         amending s. 163.3177, F.S.; providing

  5         requirements for the future land use element of

  6         a local government comprehensive plan with

  7         respect to rural areas; amending s. 186.502,

  8         F.S.; providing that a regional planning

  9         council shall have a duty to assist local

10         governments with economic development; amending

11         s. 186.504, F.S.; providing that the ex

12         officio, nonvoting membership of each regional

13         planning council shall include a representative

14         nominated by Enterprise Florida, Inc., and the

15         Office of Tourism, Trade, and Economic

16         Development; amending s. 186.505, F.S.;

17         authorizing the use of regional planning

18         council personnel, consultants, or technical or

19         professional assistants to help local

20         governments with economic development

21         activities; amending s. 212.098, F.S.;

22         authorizing the Office of Tourism, Trade, and

23         Economic Development to recommend to the

24         Legislature additions to or deletions from the

25         list of standard industrial classifications

26         used to determine an eligible business for

27         purposes of the Rural Job Tax Credit Program;

28         amending s. 288.018, F.S.; authorizing the

29         Office of Tourism, Trade, and Economic

30         Development to approve regional rural

31         development grants on an annual basis;

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  1         increasing the maximum amount of each grant

  2         award; increasing the total amount that may be

  3         expended annually for such grants; amending s.

  4         288.065, F.S.; prescribing conditions under

  5         which repayments of principal and interest

  6         under the Rural Community Development Revolving

  7         Loan Fund may be retained by a unit of local

  8         government; providing an appropriation to the

  9         Rural Community Development Revolving Loan

10         Fund; creating s. 288.0655, F.S.; creating the

11         Rural Infrastructure Fund for infrastructure

12         projects in rural communities; providing for an

13         annual deposit in the Economic Development

14         Trust Fund in support of such infrastructure

15         fund; authorizing grants for infrastructure

16         projects and related studies; requiring the

17         development of guidelines; providing that funds

18         appropriated for such infrastructure fund shall

19         not be subject to reversion; amending s.

20         320.20, F.S.; requiring the deposit of a

21         certain amount of motor vehicle registration

22         funds in the Economic Development Trust Fund in

23         support of the Rural Infrastructure Fund;

24         prescribing the manner in which such funds may

25         be used; prohibiting diversion of such funds;

26         amending s. 288.106, F.S., relating to the tax

27         refund program for qualified target industry

28         businesses; providing a definition; authorizing

29         the Office of Tourism, Trade, and Economic

30         Development to reduce certain employment

31         requirements for an expanding business in a

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  1         rural community or enterprise zone under

  2         certain conditions; creating the Rural Economic

  3         Development Initiative within the office and

  4         providing its duties and responsibilities;

  5         directing specified agencies to select a

  6         representative to work with the initiative;

  7         providing for the recommendation and

  8         designation of rural areas of critical economic

  9         concern; providing for the waiver of certain

10         criteria and rules with respect to such areas;

11         providing for the commitment of certain

12         services, resources, benefits, and staffing

13         with respect to such areas; providing for an

14         annual report; authorizing the Office of

15         Tourism, Trade, and Economic Development to

16         accept and administer moneys appropriated for

17         grants to assist rural communities to develop

18         and implement strategic economic development

19         plans; providing for review of grant

20         applications; authorizing the Department of

21         Community Affairs to establish a grant program

22         to assist rural counties in financing studies

23         regarding the establishment of municipal

24         service taxing or benefit units; providing for

25         rules; providing an appropriation; amending s.

26         236.081, F.S.; providing an exclusion under the

27         computation of school district required local

28         effort for certain nonpayment of property taxes

29         in a rural area of critical economic concern;

30         creating s. 311.20, F.S.; creating the

31         Northwest Florida Seaport Transportation and

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  1         Economic Development Council; providing for the

  2         membership of the council; requiring the

  3         council to develop a strategic regional

  4         development plan; prescribing powers of the

  5         council; providing for staffing of the council;

  6         amending s. 378.601, F.S.; exempting specified

  7         heavy mining operations from requirements for

  8         development-of-regional-impact review under

  9         certain circumstances; directing the Florida

10         Fish and Wildlife Conservation Commission to

11         provide assistance related to promotion and

12         development of nature-based recreation;

13         providing an appropriation; specifying a

14         minimum percentage of funds to be allocated to

15         economic development under the Florida Small

16         Cities Community Development Block Grant

17         Program; providing an effective date.

18

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

20

21         Section 1.  Short title.--This act may be cited as the

22  "Rural Economic Development Enhancement Act" or the "Backyard

23  Florida Act of 1999."

24         Section 2.  Legislative intent.--

25         (1)  The Legislature finds and declares that because of

26  climate, tourism, industrialization, technological advances,

27  federal and state government policies, transportation, and

28  migration, Florida's urban communities have grown rapidly over

29  the past 40 years. This growth and prosperity, however, have

30  not been shared by Florida's rural communities, although they

31  are the stewards of the vast majority of the land and natural

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  1  resources. Without this land and these resources, the state's

  2  growth and prosperity cannot continue. In short, successful

  3  rural communities are essential to the overall success of the

  4  state's economy.

  5         (2)  The Legislature further finds and declares that

  6  many rural areas of the state are experiencing not only a lack

  7  of growth, but severe and sustained economic distress. Median

  8  household incomes are significantly less than the state's

  9  median household income level. Job creation rates trail those

10  in more urbanized areas. In many cases, rural counties have

11  lost jobs, which handicaps local economies and drains wealth

12  from these communities. These and other factors, including

13  government policies, amplify and compound social, health, and

14  community problems, making job creation and economic

15  development even more difficult. Moreover, the Legislature

16  finds that traditional program and service delivery is often

17  hampered by the necessarily rigid structure of the programs

18  themselves and the lack of local resources.

19         (3)  It is the intent of the Legislature to provide for

20  the most efficient and effective delivery of programs of

21  assistance and support to rural communities, including the

22  use, where appropriate, of regulatory flexibility through

23  multiagency coordination and adequate funding. Therefore, the

24  Legislature determines and declares that the provisions of

25  this act fulfill an important state interest.

26         Section 3.  Paragraph (a) of subsection (6) of section

27  163.3177, Florida Statutes, 1998 Supplement, is amended to

28  read:

29         163.3177  Required and optional elements of

30  comprehensive plan; studies and surveys.--

31

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  1         (6)  In addition to the requirements of subsections

  2  (1)-(5), the comprehensive plan shall include the following

  3  elements:

  4         (a)  A future land use plan element designating

  5  proposed future general distribution, location, and extent of

  6  the uses of land for residential uses, commercial uses,

  7  industry, agriculture, recreation, conservation, education,

  8  public buildings and grounds, other public facilities, and

  9  other categories of the public and private uses of land.  The

10  future land use plan shall include standards to be followed in

11  the control and distribution of population densities and

12  building and structure intensities.  The proposed

13  distribution, location, and extent of the various categories

14  of land use shall be shown on a land use map or map series

15  which shall be supplemented by goals, policies, and measurable

16  objectives.  Each land use category shall be defined in terms

17  of the types of uses included and specific standards for the

18  density or intensity of use.  The future land use plan shall

19  be based upon surveys, studies, and data regarding the area,

20  including the amount of land required to accommodate

21  anticipated growth; the projected population of the area; the

22  character of undeveloped land; the availability of public

23  services; and the need for redevelopment, including the

24  renewal of blighted areas and the elimination of nonconforming

25  uses which are inconsistent with the character of the

26  community; and, in rural areas, the need for job creation,

27  capital investment, and economic development that will

28  strengthen and diversify the community's economy. The future

29  land use plan may designate areas for future planned

30  development use involving combinations of types of uses for

31  which special regulations may be necessary to ensure

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  1  development in accord with the principles and standards of the

  2  comprehensive plan and this act. In rural areas, the amount of

  3  land designated for future planned industrial use shall

  4  reflect the need for job creation, capital investment, and the

  5  necessity to strengthen and diversify the local economies, and

  6  shall not be limited by the existing population base or other

  7  factors relating to low density population and undiversified

  8  economies. The future land use plan of a county may also

  9  designate areas for possible future municipal incorporation.

10  The land use maps or map series shall generally identify and

11  depict historic district boundaries and shall designate

12  historically significant properties meriting protection.  The

13  future land use element must clearly identify the land use

14  categories in which public schools are an allowable use.  When

15  delineating the land use categories in which public schools

16  are an allowable use, a local government shall include in the

17  categories sufficient land proximate to residential

18  development to meet the projected needs for schools in

19  coordination with public school boards and may establish

20  differing criteria for schools of different type or size.

21  Each local government shall include lands contiguous to

22  existing school sites, to the maximum extent possible, within

23  the land use categories in which public schools are an

24  allowable use. All comprehensive plans must comply with this

25  paragraph no later than October 1, 1999, or the deadline for

26  the local government evaluation and appraisal report,

27  whichever occurs first. The failure by a local government to

28  comply with this requirement will result in the prohibition of

29  the local government's ability to amend the local

30  comprehensive plan as provided by s. 163.3187(6). An amendment

31  proposed by a local government for purposes of identifying the

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  1  land use categories in which public schools are an allowable

  2  use is exempt from the limitation on the frequency of plan

  3  amendments contained in s. 163.3187. The future land use

  4  element shall include criteria which encourage the location of

  5  schools proximate to urban residential areas to the extent

  6  possible and shall require that the local government seek to

  7  collocate public facilities, such as parks, libraries, and

  8  community centers, with schools to the extent possible.

  9         Section 4.  Subsection (5) is added to section 186.502,

10  Florida Statutes, to read:

11         186.502  Legislative findings; public purpose.--

12         (5)  The regional planning council shall have a duty to

13  assist local governments with activities designed to promote

14  and facilitate economic development in the geographic area

15  covered by the council.

16         Section 5.  Subsection (4) of section 186.504, Florida

17  Statutes, is amended to read:

18         186.504  Regional planning councils; creation;

19  membership.--

20         (4)  In addition to voting members appointed pursuant

21  to paragraph (2)(c), the Governor shall appoint the following

22  ex officio nonvoting members to each regional planning

23  council:

24         (a)  A representative of the Department of

25  Transportation.

26         (b)  A representative of the Department of

27  Environmental Protection.

28         (c)  A representative nominated by Enterprise Florida,

29  Inc., and the Office of Tourism, Trade, and Economic

30  Development of the Department of Commerce.

31

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  1         (d)  A representative of the appropriate water

  2  management district or districts.

  3

  4  The Governor may also appoint ex officio nonvoting members

  5  representing appropriate metropolitan planning organizations

  6  and regional water supply authorities.

  7         Section 6.  Subsection (25) is added to section

  8  186.505, Florida Statutes, to read:

  9         186.505  Regional planning councils; powers and

10  duties.--Any regional planning council created hereunder shall

11  have the following powers:

12         (25)  To use personnel, consultants, or technical or

13  professional assistants of the council to help local

14  governments within the geographic area covered by the council

15  conduct economic development activities.

16         Section 7.  Paragraph (a) of subsection (2) of section

17  212.098, Florida Statutes, 1998 Supplement, is amended to

18  read:

19         212.098  Rural Job Tax Credit Program.--

20         (2)  As used in this section, the term:

21         (a)  "Eligible business" means any sole proprietorship,

22  firm, partnership, or corporation that is located in a

23  qualified county and is predominantly engaged in, or is

24  headquarters for a business predominantly engaged in,

25  activities usually provided for consideration by firms

26  classified within the following standard industrial

27  classifications:  SIC 01 through SIC 09 (agriculture,

28  forestry, and fishing); SIC 20 through SIC 39 (manufacturing);

29  SIC 422 (public warehousing and storage); SIC 70 (hotels and

30  other lodging places); SIC 7391 (research and development);

31  SIC 7992 (public golf courses); and SIC 7996 (amusement

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  1  parks). Excluded from eligible receipts are receipts from

  2  retail sales, except such receipts for hotels and other

  3  lodging places classified in SIC 70, public golf courses in

  4  SIC 7992, and amusement parks in SIC 7996. In addition, the

  5  Office of Tourism, Trade, and Economic Development may, as

  6  part of its final budget request submitted pursuant to s.

  7  216.023, recommend additions to or deletions from the list of

  8  standard industrial classifications used to determine an

  9  eligible business, and the Legislature may implement such

10  recommendations. For purposes of this paragraph, the term

11  "predominantly" means that more than 50 percent of the

12  business's gross receipts from all sources is generated by

13  those activities usually provided for consideration by firms

14  in the specified standard industrial classification. The

15  determination of whether the business is located in a

16  qualified county and the tier ranking of that county must be

17  based on the date of application for the credit under this

18  section. Commonly owned and controlled entities are to be

19  considered a single business entity.

20         Section 8.  Subsections (1) and (3) of section 288.018,

21  Florida Statutes, are amended to read:

22         288.018  Regional Rural Development Grants Program.--

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

24  Development shall establish a matching grant program to

25  provide funding to regionally based economic development

26  organizations representing rural counties and communities for

27  the purpose of building the professional capacity of their

28  organizations. The Office of Tourism, Trade, and Economic

29  Development is authorized to approve, on an annual basis,

30  grants to such regionally based economic development

31  organizations. The maximum amount an organization may receive

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  1  in any year will be $35,000, or $100,000 in a rural area of

  2  critical economic concern recommended by the Rural Economic

  3  Development Initiative and designated by the Governor, $20,000

  4  and must be matched each year by an equivalent amount of

  5  nonstate resources.

  6         (3)  The Office of Tourism, Trade, and Economic

  7  Development may expend up to $600,000 $100,000 each fiscal

  8  year from funds appropriated to the Rural Community

  9  Development Revolving Loan Fund for the purposes outlined in

10  this section.

11         Section 9.  Subsection (2) of section 288.065, Florida

12  Statutes, is amended to read:

13         288.065  Rural Community Development Revolving Loan

14  Fund.--

15         (2)  The program shall provide for long-term loans,

16  loan guarantees, and loan loss reserves to units of local

17  governments within counties with populations less than 50,000,

18  or any county that has a population of 100,000 or less and is

19  contiguous to a county with a population less than 50,000, as

20  determined by the most recent official estimate pursuant to s.

21  186.901, residing in incorporated and unincorporated areas of

22  the county. Requests for loans shall be made by application to

23  the Office of Tourism, Trade, and Economic Development. Loans

24  shall be made pursuant to agreements specifying the terms and

25  conditions agreed to between the local government and the

26  Office of Tourism, Trade, and Economic Development. The loans

27  shall be the legal obligations of the local government. All

28  repayments of principal and interest shall be returned to the

29  loan fund and made available for loans to other applicants.

30  However, in a rural area of critical economic concern

31  designated by the Governor, and upon approval by the Office of

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  1  Tourism, Trade, and Economic Development, repayments of

  2  principal and interest may be retained by a unit of local

  3  government if such repayments are dedicated and matched to

  4  fund regionally based economic development organizations

  5  representing the rural area of critical economic concern.

  6         Section 10.  There is appropriated from the General

  7  Revenue Fund for Fiscal Year 1999-2000 the sum of $2 million

  8  to the Rural Community Development Revolving Loan Fund in the

  9  Office of Tourism, Trade, and Economic Development to

10  implement the provisions of section 288.065, Florida Statutes.

11         Section 11.  Section 288.0655, Florida Statutes, is

12  created to read:

13         288.0655  Rural Infrastructure Fund.--

14         (1)  There is created within the Office of Tourism,

15  Trade, and Economic Development the Rural Infrastructure Fund

16  to facilitate the planning, preparing, and financing of

17  infrastructure projects in rural communities which will

18  encourage job creation, capital investment, and the

19  strengthening and diversification of rural economies by

20  promoting tourism, trade, and economic development.

21         (2)  On July 1, 1999, and annually thereafter, $8

22  million shall be deposited in the Economic Development Trust

23  Fund, as provided in s. 320.20(5), solely for the purpose of

24  funding the Rural Infrastructure Fund.

25         (3)(a)  Funds under this section shall be distributed

26  by the office through a grant program that maximizes the use

27  of federal, local, and private resources, including, but not

28  limited to, those available under the Small Cities Community

29  Development Block Grant Program.

30         (b)  To facilitate access of rural communities and

31  rural areas of critical economic concern as defined by the

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  1  Rural Economic Development Initiative to infrastructure

  2  funding programs of the Federal Government, such as those

  3  offered by the U.S. Department of Agriculture and the U.S.

  4  Department of Commerce, the office may award grants to

  5  applicants for such federal programs for up to 30 percent of

  6  the total infrastructure project cost. Eligible projects must

  7  be related to specific job-creating opportunities. Eligible

  8  uses of funds shall include improvements to public

  9  infrastructure for industrial or commercial sites and upgrades

10  to or development of public tourism infrastructure. Authorized

11  infrastructure may include the following public or

12  public-private partnership facilities: sewer and water

13  capacity facilities, including storm water systems; electrical

14  facilities; telecommunications facilities; natural gas

15  facilities; roads or other remedies to transportation

16  impediments; nature-based tourism facilities; or other

17  physical requirements necessary to facilitate tourism, trade,

18  and economic development activities in the community.

19         (c)  To facilitate timely response and induce the

20  location or expansion of specific job creating opportunities,

21  the office may award grants for infrastructure feasibility

22  studies, design and engineering activities, or other

23  infrastructure planning and preparation activities. Authorized

24  grants shall be up to $50,000 for an employment project with a

25  business committed to create at least 100 jobs, up to $150,000

26  for an employment project with a business committed to create

27  at least 300 jobs, and up to $300,000 for a project in a rural

28  area of critical economic concern. Grants awarded under this

29  paragraph may be used in conjunction with grants awarded under

30  paragraph (b), provided that the total amount of both grants

31  does not exceed 30 percent of the total project cost. In

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  1  evaluating applications under this paragraph, the office shall

  2  consider the extent to which the application seeks to minimize

  3  administrative and consultant expenses.

  4         (d)  By September 1, 1999, the office shall pursue

  5  execution of a memorandum of agreement with the U.S.

  6  Department of Agriculture under which state funds available

  7  through the Rural Infrastructure Fund may be advanced, in

  8  excess of the prescribed state share, for a project that has

  9  received from the department a preliminary determination of

10  eligibility for federal financial support. State funds in

11  excess of the prescribed state share which are advanced

12  pursuant to this paragraph and the memorandum of agreement

13  shall be reimbursed when funds are awarded under an

14  application for federal funding.

15         (e)  To enable local governments to access the

16  resources available pursuant to s. 403.973(16), the office may

17  award grants for surveys, feasibility studies, and other

18  activities related to the identification and preclearance

19  review of land which is suitable for preclearance review.

20  Authorized grants under this paragraph shall not exceed

21  $75,000 each, except in the case of a project in a rural area

22  of critical economic concern, in which case the grant shall

23  not exceed $300,000. Any funds awarded under this paragraph

24  must be matched at a level of 50 percent with local funds,

25  except that any funds awarded for a project in a rural area of

26  critical economic concern must be matched at a level of 33

27  percent with local funds. In evaluating applications under

28  this paragraph, the office shall consider the extent to which

29  the application seeks to minimize administrative and

30  consultant expenses.

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  1         (4)  The office, in consultation with Enterprise

  2  Florida, Inc., VISIT Florida, the Department of Environmental

  3  Protection, and the Florida Fish and Wildlife Conservation

  4  Commission, as appropriate, shall review applications and

  5  evaluate the economic benefit of the projects and their

  6  long-term viability. The office shall have final approval for

  7  any grant under this section and must make a grant decision

  8  within 30 days of receiving a completed application.

  9         (5)  By September 1, 1999, the office shall, in

10  consultation with the organizations listed in subsection (4),

11  and other organizations, develop guidelines and criteria

12  governing submission of applications for funding, review and

13  evaluation of such applications, and approval of funding under

14  this section. The office shall consider factors including, but

15  not limited to, the project's potential for enhanced job

16  creation or increased capital investment, the demonstration of

17  local public and private commitment, the location of the

18  project in an enterprise zone, the location of the project in

19  a community development corporation service area as defined in

20  s. 290.035(2), the location of the project in a county

21  designated under s. 212.097, the unemployment rate of the

22  surrounding area, and the poverty rate of the community.

23         (6)  Notwithstanding the provisions of s. 216.301,

24  funds appropriated for the purposes of this section shall not

25  be subject to reversion.

26         Section 12.  Present subsection (5) of section 320.20,

27  Florida Statutes, is redesignated as subsection (6) and a new

28  subsection (5) is added to that section to read:

29         320.20  Disposition of license tax moneys.--The revenue

30  derived from the registration of motor vehicles, including any

31  delinquent fees and excluding those revenues collected and

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  1  distributed under the provisions of s. 320.081, must be

  2  distributed monthly, as collected, as follows:

  3         (5)  Notwithstanding any other provision of law except

  4  subsections (1), (2), (3), and (4), on July 1, 1999, and

  5  annually thereafter, $8 million shall be deposited in the

  6  Economic Development Trust Fund under s. 288.095, solely for

  7  the purposes of funding the Rural Infrastructure Fund under s.

  8  288.0655. Such revenues may be assigned, pledged, or set aside

  9  as a trust for the payment of principal or interest on bonds,

10  grant anticipation notes, variable rate demand obligations,

11  including, but not limited to, tax exempt commercial paper and

12  derivative instruments, or any other form of indebtedness, or

13  used to purchase credit support to permit such borrowings,

14  issued by a governing body under s. 163.01(7)(d), or

15  appropriate local government having jurisdiction thereof, or

16  collectively by interlocal agreement among any applicable

17  government; however, such debt shall not constitute a general

18  obligation of the State of Florida. The state does hereby

19  covenant with holders of such revenue bonds or other

20  instruments of indebtedness issued hereunder that it will not

21  repeal or impair or amend in any manner that will materially

22  and adversely affect the rights of such holders so long as

23  bonds authorized by this subsection are outstanding. Any

24  revenues which are not pledged to the repayment of bonds as

25  authorized by this subsection may be utilized for purposes

26  authorized under the Rural Infrastructure Fund. The Office of

27  Tourism, Trade, and Economic Development shall approve

28  distribution of funds for rural infrastructure related to

29  tourism, trade, and economic development. The office and the

30  Department of Transportation are authorized to perform such

31  acts as are required to facilitate and implement the

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  1  provisions of this subsection. To better enable the counties

  2  and the Office of Tourism, Trade, and Economic Development to

  3  cooperate to their mutual advantage, the governing body of

  4  each government may exercise powers provided to municipalities

  5  or counties in s. 163.01(7)(d). The use of funds provided

  6  under this subsection is limited to eligible projects listed

  7  in s. 288.0655. Unexpended proceeds derived from a project

  8  completed with the use of program funds, beyond operating

  9  costs and debt service, shall be restricted to further capital

10  improvements consistent with tourism, trade, and economic

11  development infrastructure purposes and for no other purpose.

12  Use of such unexpended proceeds for purposes other than

13  tourism, trade, and economic development infrastructure is

14  prohibited. Any funds deposited in the Economic Development

15  Trust Fund for the purposes of the Rural Infrastructure Fund

16  under s. 288.0655 shall not be diverted to any other purpose.

17  Any such diversion shall trigger immediate repayment to the

18  Economic Development Trust Fund from the Working Capital Trust

19  Fund.

20         Section 13.  Paragraph (t) is added to subsection (2)

21  of section 288.106, Florida Statutes, 1998 Supplement, and

22  paragraph (b) of subsection (4) of that section is amended, to

23  read:

24         288.106  Tax refund program for qualified target

25  industry businesses.--

26         (2)  DEFINITIONS.--As used in this section:

27         (t)  "Rural community" means:

28         1.  A county with a population of 75,000 or less.

29         2.  A county with a population of 100,000 or less that

30  is contiguous to a county with a population of 75,000 or less.

31

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  1         3.  A municipality within a county described in

  2  subparagraph 1. or subparagraph 2.

  3

  4  For purposes of this paragraph, population shall be determined

  5  in accordance with the most recent official estimate pursuant

  6  to s. 186.901.

  7         (4)  APPLICATION AND APPROVAL PROCESS.--

  8         (b)  To qualify for review by the office, the

  9  application of a target industry business must, at a minimum,

10  establish the following to the satisfaction of the office:

11         1.  The jobs proposed to be provided under the

12  application, pursuant to subparagraph (a)4., must pay an

13  estimated annual average wage equaling at least 115 percent of

14  the average private sector wage in the area where the business

15  is to be located or the statewide private sector average wage.

16  The office may waive this average wage requirement at the

17  request of the local governing body recommending the project

18  and Enterprise Florida, Inc.  The wage requirement may only be

19  waived for a project located in a brownfield area designated

20  under s. 376.80 or in a rural city or county or in an

21  enterprise zone and only when the merits of the individual

22  project or the specific circumstances in the community in

23  relationship to the project warrant such action.  If the local

24  governing body and Enterprise Florida, Inc., make such a

25  recommendation, it must be transmitted in writing and the

26  specific justification for the waiver recommendation must be

27  explained.  If the director elects to waive the wage

28  requirement, the waiver must be stated in writing and the

29  reasons for granting the waiver must be explained.

30         2.  The target industry business's project must result

31  in the creation of at least 10 jobs at such project and, if an

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  1  expansion of an existing business, must result in a net

  2  increase in employment of not less than 10 percent at such

  3  business. However, at the request of the local governing body

  4  recommending the project and Enterprise Florida, Inc., the

  5  office may approve an expansion of an existing business under

  6  this section in a rural community or an enterprise zone that

  7  results in a net increase in employment of less than 10

  8  percent if the merits of the individual project or the

  9  specific circumstances in the community in relation to the

10  project warrant this action.  If the local governing body and

11  Enterprise Florida, Inc., make such a recommendation, it must

12  be transmitted in writing and the specific justification for

13  the request must be explained.  If the director elects to

14  accept such request, this decision must be stated in writing

15  and the reasons for granting the request must be explained.

16         3.  The business activity or product for the

17  applicant's project is within an industry or industries that

18  have been identified by the office to be high-value-added

19  industries that contribute to the area and to the economic

20  growth of the state and that produce a higher standard of

21  living for citizens of this state in the new global economy or

22  that can be shown to make an equivalent contribution to the

23  area and state's economic progress.  The director must approve

24  requests to waive the wage requirement for brownfield areas

25  designated under s. 376.80 unless it is demonstrated that such

26  action is not in the public interest.

27         Section 14.  Rural Economic Development Initiative.--

28         (1)  The Rural Economic Development Initiative, known

29  as "REDI," is created within the Office of Tourism, Trade, and

30  Economic Development, and the participation of state and

31  regional agencies in this initiative is authorized.

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  1         (2)  As used in this section, the term:

  2         (a)  "Economic distress" means conditions affecting the

  3  fiscal and economic viability of a rural community, including

  4  such factors as low per capita income, low per capita taxable

  5  values, high unemployment, high underemployment, low weekly

  6  earned wages compared to the state average, low housing values

  7  compared to the state average, high percentages of the

  8  population receiving public assistance, high poverty levels

  9  compared to the state average, and a lack of year-round stable

10  employment opportunities.

11         (b)  "Rural community" means:

12         1.  A county with a population of 75,000 or less.

13         2.  A county with a population of 100,000 or less that

14  is contiguous to a county with a population of 75,000 or less.

15         3.  A municipality within a county described in

16  subparagraph 1. or subparagraph 2.

17         4.  An incorporated rural city with a population of

18  25,000 or less and an employment base focused on traditional

19  agricultural or resource-based industries, located in a county

20  not defined as rural, which has at least three or more of the

21  economic distress factors identified in paragraph (2)(a) and

22  verified by the Office of Tourism, Trade, and Economic

23  Development.

24

25  For purposes of this paragraph, population shall be determined

26  in accordance with the most recent official estimate pursuant

27  to section 186.901, Florida Statutes.

28         (3)  REDI shall be responsible for coordinating and

29  focusing the efforts and resources of state and regional

30  agencies on the problems which affect the fiscal, economic,

31  and community viability of Florida's economically distressed

                                  20

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  1  rural communities, working with local governments,

  2  community-based organizations, and private organizations that

  3  have an interest in the growth and development of these

  4  communities to find ways to balance environmental and growth

  5  management issues with local needs.

  6         (4)  REDI shall review and evaluate the impact of

  7  statutes and rules on rural communities and shall work to

  8  minimize any adverse impact.

  9         (5)  REDI shall facilitate better access to state

10  resources by promoting direct access and referrals to

11  appropriate state and regional agencies and statewide

12  organizations. REDI may undertake outreach, capacity-building,

13  and other advocacy efforts to improve conditions in rural

14  communities. These activities may include sponsorship of

15  conferences and achievement awards.

16         (6)(a)  No later than August 1, 1999, the head of each

17  of the following agencies and organizations shall designate a

18  high-level staff person from within the agency or organization

19  to serve as the REDI representative for the agency or

20  organization:

21         1.  The Department of Community Affairs.

22         2.  The Department of Transportation.

23         3.  The Department of Environmental Protection.

24         4.  The Department of Agriculture and Consumer

25  Services.

26         5.  The Department of State.

27         6.  The Department of Health.

28         7.  The Department of Children and Family Services.

29         8.  The Department of Corrections.

30         9.  The Department of Labor and Employment Security.

31         10.  The Department of Education.

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  1         11.  The Fish and Wildlife Conservation Commission.

  2         12.  Each water management district.

  3         13.  Enterprise Florida, Inc.

  4         14.  The Florida Commission on Tourism or VISIT

  5  Florida.

  6         15.  The Florida Regional Planning Council Association.

  7         16.  The Florida State Rural Development Council.

  8         17.  The Institute of Food and Agricultural Sciences

  9  (IFAS).

10

11  An alternate for each designee shall also be chosen, and the

12  names of the designees and alternates shall be sent to the

13  director of the Office of Tourism, Trade, and Economic

14  Development.

15         (b)  Each REDI representative must have comprehensive

16  knowledge of his or her agency's functions, both regulatory

17  and service in nature, and of the state's economic goals,

18  policies, and programs. This person shall be the primary point

19  of contact for his or her agency with REDI on issues and

20  projects relating to economically distressed rural communities

21  and with regard to expediting project review, shall ensure a

22  prompt effective response to problems arising with regard to

23  rural issues, and shall work closely with the other REDI

24  representatives in the identification of opportunities for

25  preferential awards of program funds and allowances and waiver

26  of program requirements when necessary to encourage and

27  facilitate long-term private capital investment and job

28  creation.

29         (c)  The REDI representatives shall work with REDI in

30  the review and evaluation of statutes and rules for adverse

31

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  1  impact on rural communities and the development of alternative

  2  proposals to mitigate that impact.

  3         (d)  Each REDI representative shall be responsible for

  4  ensuring that each district office or facility of his or her

  5  agency is informed about the Rural Economic Development

  6  Initiative and for providing assistance throughout the agency

  7  in the implementation of REDI activities.

  8         (7)  REDI may recommend to the Governor up to three

  9  rural areas of critical economic concern. A rural area of

10  critical economic concern must be a rural community, or a

11  region composed of such, that has been adversely affected by

12  an extraordinary economic event or a natural disaster or that

13  presents a unique economic development opportunity of regional

14  impact that will create more than 1,000 jobs over a 5-year

15  period. The Governor may by executive order designate up to

16  three rural areas of critical economic concern which will

17  establish these areas as priority assignments for REDI as well

18  as to allow the Governor, acting through REDI, to:

19         (a)  Waive criteria, requirements, or similar

20  provisions of any economic development incentive. Such

21  incentives shall include, but not be limited to: the Qualified

22  Target Industry Tax Refund Program under section 288.106,

23  Florida Statutes, the Quick Response Training Program under

24  section 288.047, Florida Statutes, the WAGES Quick Response

25  Training Program under section 288.047(10), Florida Statutes,

26  transportation projects under section 288.063, Florida

27  Statutes, the brownfield redevelopment bonus refund under

28  section 288.107, Florida Statutes, and the rural job tax

29  credit program under sections 212.098 and 220.1895, Florida

30  Statutes.

31

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  1         (b)  Waive agency rules to empower the agency to commit

  2  and coordinate their resources, staff, or assistance to these

  3  rural communities, as well as to suspend procedural

  4  requirements of law that do not compromise the public's

  5  health, safety, or welfare.

  6         (c)  Provide rapid response assistance, training

  7  services, and educational opportunities for employees; develop

  8  training programs; and pay tuition or training expenses for

  9  employees from resources coordinated by the Workforce

10  Development Board.

11         (d)  Commit the resources or benefits of the Rural

12  Community Development Revolving Loan Fund under section

13  288.065, Florida Statutes, the Regional Rural Grants Program

14  under section 288.018, Florida Statutes, the rural job tax

15  credit program under sections 212.098 and 220.1895, Florida

16  Statutes, and the federal Community Development Block Grant

17  Program.

18         (e)  Direct the assignment of staffing and resources

19  from Enterprise Florida, Inc.

20         (8)  REDI shall submit a report to the Governor, the

21  President of the Senate, and the Speaker of the House of

22  Representatives each year on or before February 1 on all REDI

23  activities. This report shall include a status report on all

24  projects currently being coordinated through REDI, the number

25  of preferential awards and allowances made pursuant to this

26  section, the dollar amount of such awards, and the names of

27  the recipients. The report shall also include a description of

28  all waivers of program requirements granted. The report shall

29  also include information as to the economic impact of the

30  projects coordinated by REDI.

31

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  1         Section 15.  Florida rural economic development

  2  strategy grants.--

  3         (1)  As used in this section, the term "rural

  4  community" means:

  5         (a)  A county with a population of 75,000 or less.

  6         (b)  A county with a population of 100,000 or less that

  7  is contiguous to a county with a population of 75,000 or less.

  8         (c)  A municipality within a county described in

  9  paragraph (a) or paragraph (b).

10

11  For purposes of this subsection, population shall be

12  determined in accordance with the most recent official

13  estimate pursuant to section 186.901, Florida Statutes.

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

15  Development may accept and administer moneys appropriated to

16  the office for providing grants to assist rural communities to

17  develop and implement strategic economic development plans.

18         (3)  A rural community, an economic development

19  organization in a rural area, or a regional organization

20  representing at least one rural community or such economic

21  development organizations may apply for such grants.

22         (4)  Enterprise Florida, Inc., and VISIT Florida, shall

23  establish criteria for reviewing grant applications. These

24  criteria shall include, but are not limited to, the degree of

25  participation and commitment by the local community and the

26  application's consistency with local comprehensive plans or

27  the application's proposal to ensure such consistency. The

28  International Trade and Economic Development Board of

29  Enterprise Florida, Inc., and VISIT Florida, shall review each

30  application for a grant and shall submit annually to the

31  office for approval a list of all applications that are

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  1  recommended by the board and VISIT Florida, arranged in order

  2  of priority. The office may approve grants only to the extent

  3  that funds are appropriated for such grants by the

  4  Legislature.

  5         Section 16.  Establishment of municipal service taxing

  6  or benefit units; grants to rural counties.--

  7         (1)  As used in this section, the term "rural county"

  8  means a county with a population of 75,000 or fewer persons,

  9  determined pursuant to section 186.901, Florida Statutes.

10         (2)  Subject to legislative appropriation, the

11  Department of Community Affairs shall establish a grant

12  program to assist any rural county in making a determination

13  whether to establish a municipal service taxing or benefit

14  unit as authorized by section 125.01, Florida Statutes.  Under

15  this program, any rural county that is considering the

16  establishment of a municipal service taxing or benefit unit

17  and that wishes to conduct a study to determine the necessity

18  for and advisability of establishing such a unit may apply to

19  the department for a grant to assist in financing the study.

20  If the application is approved by the department, the

21  department may award a grant to the county in an amount equal

22  to 75 percent of the cost of the study, if the county agrees

23  to finance 25 percent of the cost of the study itself.  A copy

24  of the study shall be submitted to the department within 30

25  days after it is completed.

26         (3)  The department shall establish an application form

27  and application procedures and requirements by rule pursuant

28  to chapter 120, Florida Statutes.

29         Section 17.  There is appropriated from the General

30  Revenue Fund to the Department of Community Affairs for Fiscal

31  Year 1999-2000 the sum of $1 million to carry out the purposes

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  1  of a grant program for rural county municipal service taxing

  2  or benefit unit feasibility studies.

  3         Section 18.  Paragraph (d) of subsection (4) of section

  4  236.081, Florida Statutes, 1998 Supplement, is amended to

  5  read:

  6         236.081  Funds for operation of schools.--If the annual

  7  allocation from the Florida Education Finance Program to each

  8  district for operation of schools is not determined in the

  9  annual appropriations act or the substantive bill implementing

10  the annual appropriations act, it shall be determined as

11  follows:

12         (4)  COMPUTATION OF DISTRICT REQUIRED LOCAL

13  EFFORT.--The Legislature shall prescribe the aggregate

14  required local effort for all school districts collectively as

15  an item in the General Appropriations Act for each fiscal

16  year. The amount that each district shall provide annually

17  toward the cost of the Florida Education Finance Program for

18  kindergarten through grade 12 programs shall be calculated as

19  follows:

20         (d)  Exclusions Exclusion.--

21         1.  In those instances in which:

22         a.1.  There is litigation either attacking the

23  authority of the property appraiser to include certain

24  property on the tax assessment roll as taxable property or

25  contesting the assessed value of certain property on the tax

26  assessment roll, and

27         b.2.  The assessed value of the property in contest

28  involves more than 6 percent of the total nonexempt assessment

29  roll,

30

31

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  1  the assessed value of the property in contest shall be

  2  excluded from the taxable value for school purposes for

  3  purposes of computing the district required local effort.

  4         2.  In those instances in which there is a nonpayment

  5  of property taxes in a community designated as a rural area of

  6  critical economic concern that exceeds 6 percent of the total

  7  nonexempt assessment roll, the assessed value of the property

  8  that is the subject of the nonpayment shall be excluded from

  9  the taxable value for school purposes for purposes of

10  computing the district required local effort.

11         Section 19.  Section 311.20, Florida Statutes, is

12  created to read:

13         311.20  Northwest Florida Seaport Transportation and

14  Economic Development Council.--

15         (1)  There is created the Northwest Florida Seaport

16  Transportation and Economic Development Council as a

17  corporation not for profit to be incorporated under the

18  provisions of chapter 617. The purpose of the council is to

19  enhance economic development in the northwest Florida region

20  by creating jobs and increasing cargo flow and port revenues

21  at the three ports located in the region and the regional

22  communities.

23         (2)(a)  The council shall consist of the following

24  members: the port director or designee of the port of Panama

25  City; the port director or designee of the port of Pensacola;

26  the port director or designee of the port of Port St. Joe; the

27  director or designee of the Office of Tourism, Trade, and

28  Economic Development; and a representative from Enterprise

29  Florida, Inc. In addition, the members of the council may

30  appoint up to four ex officio nonvoting members to the

31  council.

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  1         (b)  Members of the council shall serve without

  2  compensation but are entitled to receive reimbursement for per

  3  diem and travel expenses as provided in s. 112.061.

  4         (3)  The council shall develop a comprehensive

  5  strategic regional development plan that includes, but is not

  6  limited to, the following:

  7         (a)  A marketing strategy for development at the three

  8  ports and their respective communities;

  9         (b)  A review of multi-modal transportation

10  requirements for the region; and

11         (c)  An identification of specific transportation and

12  economic development projects that create jobs and increase

13  cargo flow and port revenues at the three ports and the

14  regional communities. Subject to specific appropriation by the

15  Legislature, the council may grant funds for the development

16  of such projects.

17         (4)  The council shall have all the powers necessary

18  and convenient to carry out and effectuate the purposes and

19  provisions of this section, including, but not limited to, the

20  power to:

21         (a)  Solicit, receive, hold, invest, and administer any

22  grant, payment, or gift of funds or property.

23         (b)  Purchase, receive, hold, lease, or otherwise

24  acquire, and to sell, convey, transfer, lease, or otherwise

25  dispose of, real property and personal property together with

26  such rights and privileges as may be incidental and

27  appurtenant thereto and the use thereof.

28         (c)  Make and enter into contracts and other

29  instruments with public or private sector entities for the

30  purpose of exercising or performing its powers and functions.

31

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  1         (5)  The council may appoint an executive director, and

  2  the executive director may employ such staff as may be

  3  authorized by the council. The compensation of the executive

  4  director and staff shall be set by the council.

  5         Section 20.  Subsection (5) of section 378.601, Florida

  6  Statutes, is amended to read:

  7         378.601  Heavy minerals.--

  8         (5)  Any heavy mineral mining operation which annually

  9  mines less than 500 acres and whose proposed consumption of

10  water is 3 million gallons per day or less shall not be

11  required to undergo development of regional impact review

12  pursuant to s. 380.06, provided permits and plan approvals

13  pursuant to either this section and part IV of chapter 373, or

14  s. 378.901, are issued.  This subsection applies only in the

15  following circumstances:

16         (a)  Mining is conducted in counties where the operator

17  has conducted heavy mineral mining activities prior to March

18  1, 1997; and

19         (b)  The operator of the heavy mineral mining operation

20  has executed a developer agreement pursuant to s. 380.032 or

21  has received a development order under s. 380.06(15) as of

22  March 1, 1997. Lands mined pursuant to this section need not

23  be the subject of the developer agreement or development

24  order.

25         Section 21.  The Florida Fish and Wildlife Conservation

26  Commission is directed to assist the Florida Commission on

27  Tourism; the Florida Tourism Industry Marketing Corporation,

28  doing business as VISIT Florida; convention and visitor

29  bureaus; tourist development councils; economic development

30  organizations; and local governments through the provision of

31  marketing advice, technical expertise, promotional support,

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  1  and product development related to nature-based recreation and

  2  sustainable use of natural resources. In carrying out this

  3  responsibility, the Florida Fish and Wildlife Conservation

  4  Commission shall focus its efforts on fostering nature-based

  5  recreation in rural communities and regions encompassing rural

  6  communities. As used in this section, the term "nature-based

  7  recreation" means leisure activities related to the state's

  8  lands, waters, and fish and wildlife resources, including, but

  9  not limited to, wildlife viewing, fishing, hiking, canoeing,

10  kayaking, camping, hunting, backpacking, and nature

11  photography. For the purposes of this section, there is

12  appropriated from the General Revenue Fund, for Fiscal Year

13  1999-2000, the sum of $277,143 to the Florida Fish and

14  Wildlife Conservation Commission.

15         Section 22.  Notwithstanding the provisions of section

16  290.044(4), Florida Statutes, regarding the distribution of

17  funds to categories under the Florida Small Cities Community

18  Development Block Grant Program, in no case shall the

19  percentage of funds for the economic development category be

20  less than 40 percent.

21         Section 23.  This act shall take effect July 1, 1999.

22

23

24

25

26

27

28

29

30

31

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  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                         Senate Bill 1560

  3

  4  This committee substitute creates the "Rural Economic
    Development Enhancement Act" or the "Backyard Florida Act of
  5  1999." Through its principal provisions, the committee
    substitute:
  6
          Allows for job creation and economic development to be
  7        considered as factors in future land use plans and in
          designation of industrial use, notwithstanding existing
  8        population or low-density population.

  9        Provides that regional planning councils shall have a
          duty to assist local governments with economic
10        development activities, and it provides for regional
          planning council membership to include a representative
11        nominated jointly by Enterprise Florida, Inc., and the
          Office of Tourism, Trade, and Economic Development. This
12        committee substitute also authorizes regional planning
          councils to use their personnel, consultants, or other
13        assistants to help local governments with economic
          development activities.
14
          Authorizes the Office of Tourism, Trade, and Economic
15        Development (OTTED) to recommend to the Legislature
          additions to or deletions from the list of standard
16        industrial classifications used to determine an eligible
          business for purposes of the Rural Job Tax Credit
17        Program.

18        Increases the maximum grant amount under the Regional
          Rural Development Grant Program to $35,000, or $100,000
19        in a rural area of critical economic concern.

20        Authorizes OTTED to allow a rural area of critical
          economic concern to retain repayments of principal and
21        interest under the Rural Community Development Revolving
          Loan Fund if certain conditions are met. Provides a $2
22        million appropriation from General Revenue to the Rural
          Community Development Revolving Loan Fund.
23
          Creates the Rural Infrastructure Fund within OTTED.
24        Provides for $8 million from motor vehicle registration
          funds to be deposited annually in the Economic
25        Development Trust Fund in support of the Rural
          Infrastructure Fund. Proceeds will provide grants for
26        infrastructure in support of specific economic
          development projects.
27
          Revises provisions relating to the tax refund program
28        for Qualified Target Industry (QTI) businesses by
          allowing OTTED to approve for tax refund an expansion of
29        an existing business in a rural community or an
          enterprise zone that results in a net increase in
30        employment of less than 10 percent.

31        Creates the Rural Economic Development Initiative (REDI)
          within OTTED and provides its duties and
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  1        responsibilities. REDI would be responsible for
          coordinating and focusing the efforts and resources of
  2        state and regional agencies on the problems which affect
          the fiscal, economic, and community viability of
  3        Florida's economically distressed rural communities.
          Provides for the designation of rural areas of critical
  4        economic concern.

  5        Authorizes the provision of grants to rural communities
          to develop and implement strategic economic development
  6        plans.

  7        Authorizes the Department of Community Affairs (DCA),
          subject to legislative appropriations, to establish a
  8        grant program to assist rural counties in financing
          studies to determine the feasibility of establishing
  9        municipal service taxing/benefit units. This committee
          substitute provides for an appropriation of $1 million
10        to DCA to carry out the purposes of the grant program.

11        Provides an exclusion related to the district required
          local effort when there is a specified nonpayment of
12        property taxes in a community designated as a rural area
          of critical economic concern.
13
          Creates the Northwest Florida Seaport Transportation and
14        Economic Development Council as a not-for-profit
          corporation to enhance economic development in Northwest
15        Florida.

16        Expands circumstances under which certain heavy mineral
          mining operations may not be required to undergo a
17        development of regional impact review.

18        Directs the Florida Fish and Wildlife Conservation
          Commission to provide assistance, including marketing
19        and product development, related to nature-based
          recreation for rural communities. Provides a General
20        Revenue appropriation of $277,143.

21        Specifies that at least 40 percent of funds under the
          Small Cities Community Development Block Grant Program
22        shall be allocated to economic development.

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