Senate Bill 1616

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    Florida Senate - 1999                                  SB 1616

    By Senator Kirkpatrick





    5-1576A-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. 212.098,

  8         F.S.; authorizing the Office of Tourism, Trade,

  9         and Economic Development to recommend to the

10         Legislature additions to or deletions from the

11         list of standard industrial classifications

12         used to determine an eligible business for

13         purposes of the Rural Job Tax Credit Program;

14         providing an appropriation to the Rural

15         Community Development Revolving Loan Fund;

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

17         refund program for qualified target industry

18         businesses; providing a definition; authorizing

19         the office to reduce certain employment

20         requirements for an expanding business in a

21         rural community or enterprise zone under

22         certain conditions; creating the Rural Economic

23         Development Initiative within the office and

24         providing its duties and responsibilities;

25         directing specified agencies to select a

26         representative to work with the initiative;

27         providing for an annual report; authorizing the

28         office to accept and administer moneys

29         appropriated for grants to assist rural

30         communities to develop and implement strategic

31         economic development plans; providing for

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    Florida Senate - 1999                                  SB 1616
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  1         review of grant applications; providing an

  2         effective date.

  3

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

  5

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

  7  "Rural Economic Development Enhancement Act."

  8         Section 2.  Legislative intent.--

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

10  climate, tourism, industrialization, technological advances,

11  federal and state government policies, transportation, and

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

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

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

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

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

17  growth and prosperity cannot continue. In short, successful

18  rural communities are essential to the overall success of the

19  state's economy.

20         (2)  The Legislature further finds and declares that

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

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

23  household incomes are significantly less than the state's

24  median household income level. Job creation rates trail those

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

26  lost jobs, which handicaps local economies and drains wealth

27  from these communities. These and other factors, including

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

29  community problems, making job creation and economic

30  development even more difficult. Moreover, the Legislature

31  finds that traditional program and service delivery is often

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  1  hampered by the necessarily rigid structure of the programs

  2  themselves, and the lack of local resources.

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

  4  the most efficient and effective delivery of programs of

  5  assistance and support to rural communities, including the

  6  use, where appropriate, of regulatory flexibility through

  7  multiagency coordination and adequate funding. Therefore, the

  8  Legislature determines and declares that the provisions of

  9  this act fulfill an important state interest.

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

11  163.3177, Florida Statutes, 1998 Supplement, is amended to

12  read:

13         163.3177  Required and optional elements of

14  comprehensive plan; studies and surveys.--

15         (6)  In addition to the requirements of subsections

16  (1)-(5), the comprehensive plan shall include the following

17  elements:

18         (a)  A future land use plan element designating

19  proposed future general distribution, location, and extent of

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

21  industry, agriculture, recreation, conservation, education,

22  public buildings and grounds, other public facilities, and

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

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

25  the control and distribution of population densities and

26  building and structure intensities.  The proposed

27  distribution, location, and extent of the various categories

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

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

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

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

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

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

  3  including the amount of land required to accommodate

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

  5  character of undeveloped land; the availability of public

  6  services; and the need for redevelopment, including the

  7  renewal of blighted areas and the elimination of nonconforming

  8  uses which are inconsistent with the character of the

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

10  capital investment, and economic development that will

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

12  land use plan may designate areas for future planned

13  development use involving combinations of types of uses for

14  which special regulations may be necessary to ensure

15  development in accord with the principles and standards of the

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

17  land designated for future planned industrial use shall

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

19  necessity to strengthen and diversify the local economies, and

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

21  factors relating to low density population and undiversified

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

23  designate areas for possible future municipal incorporation.

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

25  depict historic district boundaries and shall designate

26  historically significant properties meriting protection.  The

27  future land use element must clearly identify the land use

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

29  delineating the land use categories in which public schools

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

31  categories sufficient land proximate to residential

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  1  development to meet the projected needs for schools in

  2  coordination with public school boards and may establish

  3  differing criteria for schools of different type or size.

  4  Each local government shall include lands contiguous to

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

  6  the land use categories in which public schools are an

  7  allowable use. All comprehensive plans must comply with this

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

  9  the local government evaluation and appraisal report,

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

11  comply with this requirement will result in the prohibition of

12  the local government's ability to amend the local

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

14  proposed by a local government for purposes of identifying the

15  land use categories in which public schools are an allowable

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

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

18  element shall include criteria which encourage the location of

19  schools proximate to urban residential areas to the extent

20  possible and shall require that the local government seek to

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

22  community centers, with schools to the extent possible.

23         Section 4.  Paragraph (a) of subsection (2) of section

24  212.098, Florida Statutes, 1998 Supplement, is amended to

25  read:

26         212.098  Rural Job Tax Credit Program.--

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

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

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

30  qualified county and is predominantly engaged in, or is

31  headquarters for a business predominantly engaged in,

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  1  activities usually provided for consideration by firms

  2  classified within the following standard industrial

  3  classifications:  SIC 01 through SIC 09 (agriculture,

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

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

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

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

  8  parks). Excluded from eligible receipts are receipts from

  9  retail sales, except such receipts for hotels and other

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

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

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

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

14  216.023, recommend additions to or deletions from the list of

15  standard industrial classifications used to determine an

16  eligible business, and the Legislature may implement such

17  recommendations. For purposes of this paragraph, the term

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

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

20  those activities usually provided for consideration by firms

21  in the specified standard industrial classification. The

22  determination of whether the business is located in a

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

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

25  section. Commonly owned and controlled entities are to be

26  considered a single business entity.

27         Section 5.  There is appropriated from the General

28  Revenue Fund for fiscal year 1999-2000 the sum of $2 million

29  to the Rural Community Development Revolving Loan Fund in the

30  Office of Tourism, Trade, and Economic Development to

31  implement the provisions of section 288.065, Florida Statutes.

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  1         Section 6.  Paragraph (t) is added to subsection (2) of

  2  section 288.106, Florida Statutes, 1998 Supplement, and

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

  4  read:

  5         288.106  Tax refund program for qualified target

  6  industry businesses.--

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

  8         (t)  "Rural community" means:

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

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

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

12         3.  A municipality within a county described in

13  subparagraph 1. or subparagraph 2.

14

15  For purposes of this paragraph, population shall be determined

16  in accordance with the most recent official estimate pursuant

17  to s. 186.901.

18         (4)  APPLICATION AND APPROVAL PROCESS.--

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

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

21  establish the following to the satisfaction of the office:

22         1.  The jobs proposed to be provided under the

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

24  estimated annual average wage equaling at least 115 percent of

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

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

27  The office may waive this average wage requirement at the

28  request of the local governing body recommending the project

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

30  waived for a project located in a brownfield area designated

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

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  1  enterprise zone and only when the merits of the individual

  2  project or the specific circumstances in the community in

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

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

  5  recommendation, it must be transmitted in writing and the

  6  specific justification for the waiver recommendation must be

  7  explained.  If the director elects to waive the wage

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

  9  reasons for granting the waiver must be explained.

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

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

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

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

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

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

16  office may approve an expansion of an existing business under

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

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

19  percent if the merits of the individual project or the

20  specific circumstances in the community in relation to the

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

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

23  be transmitted in writing and the specific justification for

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

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

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

27         3.  The business activity or product for the

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

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

30  industries that contribute to the area and to the economic

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

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

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

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

  4  requests to waive the wage requirement for brownfield areas

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

  6  action is not in the public interest.

  7         Section 7.  Rural Economic Development Initiative.--

  8         (1)  The Rural Economic Development Initiative, known

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

10  Economic Development, and the participation of state and

11  regional agencies in this initiative is authorized.

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

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

14  fiscal and economic viability of a rural community, including

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

16  values, high unemployment, high underemployment, low weekly

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

18  compared to the state average, high percentages of the

19  population receiving public assistance, high poverty levels

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

21  employment opportunities.

22         (b)  "Rural community" means:

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

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

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

26         3.  A municipality within a county described in

27  subparagraph 1. or subparagraph 2.

28

29  For purposes of this paragraph, population shall be determined

30  in accordance with the most recent official estimate pursuant

31  to section 186.901, Florida Statutes.

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  1         (3)  REDI shall be responsible for coordinating and

  2  focusing the efforts and resources of state and regional

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

  4  and community viability of Florida's economically distressed

  5  rural communities, working with local governments,

  6  community-based organizations, and private organizations that

  7  have an interest in the growth and development of these

  8  communities to find ways to balance environmental and growth

  9  management issues with local needs.

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

11  statutes and rules on rural communities and shall work to

12  minimize any adverse impact.

13         (5)  REDI shall facilitate better access to state

14  resources by promoting direct access and referrals to

15  appropriate state and regional agencies and statewide

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

17  and other advocacy efforts to improve conditions in rural

18  communities. These activities may include sponsorship of

19  conferences and achievement awards.

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

21  of the following agencies and organizations shall designate a

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

23  to serve as the REDI representative for the agency or

24  organization:

25         1.  The Department of Community Affairs.

26         2.  The Department of Transportation.

27         3.  The Department of Environmental Protection.

28         4.  The Department of Agriculture and Consumer

29  Services.

30         5.  The Department of State.

31         6.  The Department of Health.

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  1         7.  The Department of Children and Family Services.

  2         8.  The Department of Corrections.

  3         9.  The Department of Labor and Employment Security.

  4         10.  The Fish and Wildlife Conservation Commission.

  5         11.  Each water management district.

  6         12.  Enterprise Florida, Inc.

  7         13.  The Florida Commission on Tourism or VISIT

  8  Florida, Inc.

  9         14.  The Florida Regional Planning Council Association.

10         15.  The Florida State Rural Development Council.

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

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

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

15  Development.

16         (b)  Each REDI representative must have comprehensive

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

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

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

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

21  projects relating to economically distressed rural communities

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

23  prompt effective response to problems arising with regard to

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

25  representatives in the identification of opportunities for

26  preferential awards of program funds and allowances and waiver

27  of program requirements when necessary to encourage and

28  facilitate long-term private capital investment and job

29  creation.

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

31  the review and evaluation of statutes and rules for adverse

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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 shall submit a report to the Governor, the

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

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

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

12  projects currently being coordinated through REDI, the number

13  of preferential awards and allowances made pursuant to this

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

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

16  all waivers of program requirements granted. The report shall

17  also include information as to the economic impact of the

18  projects coordinated by REDI.

19         Section 8.  Florida rural economic development strategy

20  grants.--

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

22  community" means:

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

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

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

26         (c)  A municipality within a county described in

27  paragraph (a) or paragraph (b).

28

29  For purposes of this subsection, population shall be

30  determined in accordance with the most recent official

31  estimate pursuant to section 186.901, Florida Statutes.

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

  2  Development may accept and administer moneys appropriated to

  3  the office for providing grants to assist rural communities to

  4  develop and implement strategic economic development plans.

  5         (3)  A rural community, an economic development

  6  organization in a rural area, or a regional organization made

  7  up of rural communities or such economic development

  8  organizations may apply for such grants.

  9         (4)  Enterprise Florida, Inc., and VISIT Florida, Inc.,

10  shall establish criteria for reviewing grant applications.

11  These criteria shall include, but are not limited to, the

12  degree of participation and commitment by the local community

13  and the application's consistency with local comprehensive

14  plans or the application's proposal to ensure such

15  consistency. The International Trade and Economic Development

16  Board of Enterprise Florida, Inc., and VISIT Florida, Inc.,

17  shall review each application for a grant and shall submit

18  annually to the office for approval a list of all applications

19  that are recommended by the board and VISIT Florida, Inc.,

20  arranged in order of priority. The office may approve grants

21  only to the extent that funds are appropriated for such grants

22  by the Legislature.

23         Section 9.  This act shall take effect July 1, 1999.

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  1            *****************************************

  2                       LEGISLATIVE SUMMARY

  3
      Creates the "Rural Economic Development Enhancement Act."
  4

  5    Provides requirements for the future land use element of
      a local government comprehensive plan with respect to
  6    rural areas.

  7
      Authorizes the Office of Tourism, Trade, and Economic
  8    Development to recommend to the Legislature additions to
      or deletions from the list of standard industrial
  9    classifications used to determine an eligible business
      for purposes of the Rural Job Tax Credit Program.
10

11    Provides an appropriation to the Rural Community
      Development Revolving Loan Fund.
12

13    Revises provisions relating to the tax refund program for
      qualified target industry businesses. Authorizes the
14    office to reduce certain employment requirements for an
      expanding business in a rural community or enterprise
15    zone under certain conditions.

16
      Creates the Rural Economic Development Initiative within
17    the office and provides its duties and responsibilities.
      Directs specified agencies to select a representative to
18    work with the initiative. Provides for an annual report.

19
      Authorizes the office to accept and administer moneys
20    appropriated for grants to assist rural communities to
      develop and implement strategic economic development
21    plans and provides for review of grant applications.

22

23

24

25

26

27

28

29

30

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