Senate Bill 0214c2

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    Florida Senate - 1999                     CS for CS for SB 214

    By the Committees on Comprehensive Planning, Local and
    Military Affairs; Commerce and Economic Opportunities; and
    Senator Silver



    316-1804A-99

  1                      A bill to be entitled

  2         An act relating to empowerment zones; creating

  3         s. 290.0491, F.S.; creating the "Florida

  4         Empowerment Zone Act"; defining terms;

  5         providing legislative intent; providing for

  6         administration by the Department of Community

  7         Affairs; providing an appropriation; providing

  8         requirements for eligibility; amending s.

  9         212.097, F.S.; defining as a "qualified

10         high-crime area" areas receiving 1999 federal

11         empowerment zone designation; amending s.

12         212.098, F.S.; defining as a "qualified county"

13         a county that contains an area receiving 1999

14         enterprise community designation; amending s.

15         290.0065, F.S.; designating areas receiving

16         1999 federal empowerment zone or rural

17         enterprise community designations as state

18         enterprise zones and authorizing satellite

19         enterprise zones; providing an effective date.

20

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

22

23         Section 1.  Section 290.0491, Florida Statutes, is

24  created to read:

25         290.0491  Florida Empowerment Zones.--

26         (1)  SHORT TITLE.--This section may be cited as the

27  "Florida Empowerment Zone Act."

28         (2)  DEFINITIONS.--As used in this section, the term:

29         (a)  "Department" means the Department of Community

30  Affairs.

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    Florida Senate - 1999                     CS for CS for SB 214
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  1         (b)  "Federal Empowerment Zone Program" means the

  2  empowerment zone program established in 26 U.S.C. s. 1391 et

  3  seq.

  4         (c)  "Nominated area" means an area nominated for

  5  participation in the Federal Empowerment Zone Program.

  6         (d)  "Sponsoring designee" means the lead entity that

  7  applied for and received the empowerment zone designation, but

  8  does not include other entities that joined in the

  9  application.

10         (3)  LEGISLATIVE INTENT.--The Legislature recognizes

11  that it is in the public interest that the state create

12  economic opportunity in poverty-stricken areas and rebuild

13  such areas by empowering the people and communities within

14  these areas to create jobs and opportunities. The U.S.

15  Congress in 1997 provided that an additional 20 areas may be

16  designated as federal empowerment zones by January 1, 1999,

17  and, as such, be eligible for federal funding under the

18  Federal Empowerment Zone Program. The Legislature seeks to

19  promote local governments in submitting the strongest possible

20  proposals under the Federal Empowerment Zone Program by

21  establishing a companion state empowerment zone program. 

22         (4)  EMPOWERMENT ZONE PROGRAM.--There is created an

23  economic development program to be known as the Florida

24  Empowerment Zone Program. The program shall exist for 10 years

25  and, except as otherwise provided by law, be operated by the

26  Department of Community Affairs in conjunction with the

27  Federal Empowerment Zone Program.

28         (5)  FUNDING.--Beginning in fiscal year 1999-2000, the

29  sum of $5,250,000 is appropriated to the Department of

30  Community Affairs from the General Revenue Fund each year

31  during the 10-year program. The funds must be distributed by

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    Florida Senate - 1999                     CS for CS for SB 214
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  1  the department to each sponsoring designee within the state

  2  which was announced in January 1999 as having the Federal

  3  Empowerment Zone designation under 26 U.S.C. s. 1391(g) or to

  4  each community that was awarded in January 1999 the Rural

  5  Enterprise Community designation, except that the Department

  6  of Community Affairs may retain up to 2 percent of the annual

  7  appropriation for state administrative costs associated with

  8  the program. From those funds, at least $4.9 million but no

  9  more than $5 million must be distributed to an urban

10  sponsoring designee and at least $245,000 but no more than

11  $250,000 must be distributed to a rural sponsoring designee or

12  Rural Enterprise Community, if the rural sponsoring designee

13  or Rural Enterprise Community has matched the amount with

14  local funds. The funds must be used for the benefit of the

15  nominated area and are contingent upon the sponsoring designee

16  or Rural Enterprise Community receiving Empowerment Zone or

17  Enterprise Community funds under federal law and meeting the

18  local-match requirements imposed by the Federal Empowerment or

19  Enterprise Community regulations and this section.

20         (6)  GENERAL POWERS OF THE DEPARTMENT OF COMMUNITY

21  AFFAIRS.--The department has all the powers necessary to carry

22  out the purposes of the Florida Empowerment Zone Program

23  including the power to adopt and enforce rules not

24  inconsistent with this section for the administration of the

25  fund. The department shall evaluate the performance of the

26  Florida Empowerment Zone program recipients against the

27  milestones, outcomes, and performance measures contained in

28  the application's strategic plan as submitted for designation

29  as an empowerment zone.

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    Florida Senate - 1999                     CS for CS for SB 214
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  1         Section 2.  Paragraph (e) of subsection (2) of section

  2  212.097, Florida Statutes, 1998 Supplement, is amended to

  3  read:

  4         212.097  Urban High-Crime Area Job Tax Credit

  5  Program.--

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

  7         (e)  "Qualified high-crime area" means an area selected

  8  by the Office of Tourism, Trade, and Economic Development in

  9  the following manner: every third year, the office shall rank

10  and tier those areas nominated under subsection (8), according

11  to the following prioritized criteria:

12         1.  Highest arrest rates within the geographic area for

13  violent crime and for such other crimes as drug sale, drug

14  possession, prostitution, vandalism, and civil disturbances;

15         2.  Highest reported crime volume and rate of specific

16  property crimes such as business and residential burglary,

17  motor vehicle theft, and vandalism;

18         3.  Highest percentage of reported index crimes that

19  are violent in nature;

20         4.  Highest overall index crime volume for the area;

21  and

22         5.  Highest overall index crime rate for the geographic

23  area.

24

25  Tier-one areas are ranked 1 through 5 and represent the

26  highest crime areas according to this ranking.  Tier-two areas

27  are ranked 6 through 10 according to this ranking.  Tier-three

28  areas are ranked 11 through 15. Notwithstanding this

29  definition, "qualified high-crime area" also means an area

30  that has been designated as a federal Empowerment Zone

31  pursuant to the Taxpayer Relief Act of 1997. Such a designated

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    Florida Senate - 1999                     CS for CS for SB 214
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  1  area is ranked in Tier Three until the areas are reevaluated

  2  by the Office of Tourism, Trade, and Economic Development.

  3         Section 3.  Paragraph (c) of subsection (2) of section

  4  212.098, Florida Statutes, 1998 Supplement, is amended to

  5  read:

  6         212.098  Rural Job Tax Credit Program.--

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

  8         (c)  "Qualified county" means a county that has a

  9  population of fewer than 75,000 persons, or any county that

10  has a population of 100,000 or less and is contiguous to a

11  county that has a population of less than 75,000, selected in

12  the following manner:  every third year, the Office of

13  Tourism, Trade, and Economic Development shall rank and tier

14  the state's counties according to the following four factors:

15         1.  Highest unemployment rate for the most recent

16  36-month period.

17         2.  Lowest per capita income for the most recent

18  36-month period.

19         3.  Highest percentage of residents whose incomes are

20  below the poverty level, based upon the most recent data

21  available.

22         4.  Average weekly manufacturing wage, based upon the

23  most recent data available.

24

25  Tier-one qualified counties are those ranked 1 through 5 and

26  represent the state's least-developed counties according to

27  this ranking. Tier-two qualified counties are those ranked 6

28  through 10, and tier-three counties are those ranked 11

29  through 17 15. Notwithstanding this definition, "qualified

30  county" also means a county that contains an area that has

31  been designated as a federal Enterprise Community pursuant to

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    Florida Senate - 1999                     CS for CS for SB 214
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  1  the 1999 Agricultural Appropriations Act. Such a designated

  2  area shall be ranked in Tier Three until the areas are

  3  reevaluated by the Office of Tourism, Trade, and Economic

  4  Development.

  5         Section 4.  Subsection (5) of section 290.0065, Florida

  6  Statutes, 1998 Supplement, is amended, and subsection (12) is

  7  added to that section, to read:

  8         290.0065  State designation of enterprise zones.--

  9         (5)  Notwithstanding s. 290.0055, an area designated as

10  a federal empowerment zone or enterprise community pursuant to

11  Title XIII of the Omnibus Budget Reconciliation Act of 1993,

12  the Taxpayer Relief Act of 1997, or the 1999 Agricultural

13  Appropriations Act shall be designated a state enterprise zone

14  as follows:

15         (a)  An area designated as an urban empowerment zone or

16  urban enterprise community pursuant to Title XIII of the

17  Omnibus Budget Reconciliation Act of 1993 or the Taxpayer

18  Relief Act of 1997 shall be designated a state enterprise zone

19  by the department upon completion of the requirements set out

20  in paragraph (d), except in the case of a county as defined in

21  s. 125.011(1) which, notwithstanding s. 290.0055, may

22  incorporate and include such designated urban empowerment zone

23  or urban enterprise community areas within the boundaries of

24  its state enterprise zones without any limitation as to size.

25         (b)  An area designated as a rural empowerment zone or

26  rural enterprise community pursuant to Title XIII of the

27  Omnibus Budget Reconciliation Act of 1993 or the 1999

28  Agricultural Appropriations Act shall be designated a state

29  enterprise zone by the department upon completion of the

30  requirements set out in paragraph (d).

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    Florida Senate - 1999                     CS for CS for SB 214
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  1         (c)  Any county or municipality having jurisdiction

  2  over an area designated as a state enterprise zone pursuant to

  3  this subsection, other than a county defined in s. 125.011(1),

  4  may not apply for designation of another area.

  5         (d)  Prior to designating such areas as state

  6  enterprise zones, the department shall ensure that the

  7  governing body having jurisdiction over the zone submits the

  8  strategic plan required pursuant to 7 C.F.R. part 25 or 24

  9  C.F.R. part 597 to the department, and creates an enterprise

10  zone development agency pursuant to s. 290.0056.

11         (e)  The department shall place any area designated as

12  a state enterprise zone pursuant to this subsection in the

13  appropriate category established in subsection (3), and

14  include such designations within the limitations on state

15  enterprise zone designations set out in subsection (1).

16         (12)  Before December 31, 1999, any county as defined

17  in s. 125.011(1) may create a satellite enterprise zone not

18  exceeding 3 square miles in area outside of and,

19  notwithstanding anything contained in s. 290.0055(4) or

20  elsewhere, in addition to the previously designated 20 square

21  miles of enterprise zones. The Office of Tourism, Trade, and

22  Economic Development shall amend the boundaries of the areas

23  previously designated by any such county as enterprise zones

24  upon the receipt of a resolution adopted by such governing

25  body describing the satellite enterprise zone, as long as the

26  additional area is consistent with the categories, criteria,

27  and limitations imposed by s. 290.0055, provided that the

28  20-square-mile limitation and the requirements imposed by s.

29  290.0055(4)(d) do not apply to such satellite enterprise zone.

30         Section 5.  This act shall take effect upon becoming a

31  law.

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    Florida Senate - 1999                     CS for CS for SB 214
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  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                            CS/SB 214

  3

  4  Qualifies businesses located in that portion of Miami-Dade
    County designated a federal empowerment zone as eligible for
  5  the Urban High-Crime Tax Credit program.

  6  Qualifies businesses located in Immokalee, as a designated
    rural enterprise community, as eligible for the Rural Job Tax
  7  Credit Program.

  8  Authorizes enterprise zone designation for the areas within
    Miami-Dade County designated as a federal empowerment zone and
  9  the area of Immokalee designated as a rural enterprise
    community.
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    Authorizes the creation of a satellite enterprise zone, not to
11  exceed three miles in size, outside of the boundaries of
    existing enterprise zones located in Miami-Dade County.
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