House Bill 2183
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Florida House of Representatives - 1999 HB 2183
By the Committee on Business Development & International
Trade and Representatives Bradley, Ritchie, Hart, Wallace,
Sanderson, Betancourt, Prieguez, Russell and Reddick
1 A bill to be entitled
2 An act relating to economic development;
3 amending s. 14.2015, F.S.; specifying the
4 programs and funds that the Office of Tourism,
5 Trade, and Economic Development is authorized
6 to administer; authorizing the office to expend
7 interest earned from certain trust fund
8 investments for program administration;
9 specifying the duties in connection with which
10 the office may enter into contracts; creating
11 the Office of Urban Opportunity within the
12 Office of Tourism, Trade, and Economic
13 Development and providing its duties; creating
14 s. 14.2019, F.S.; creating the Florida Trade
15 Council within the Executive Office of the
16 Governor; providing for its membership and
17 powers; providing for per diem and travel
18 expenses; directing the council to develop a
19 comprehensive strategic plan and allocate
20 resources to activities and programs that
21 incorporate plan strategies; providing for an
22 executive director and staff; amending s.
23 288.095, F.S.; revising provisions relating to
24 tax refunds paid from the Economic Development
25 Incentive Account; providing a limitation;
26 amending s. 288.1045, F.S., relating to the
27 qualified defense contractor tax refund
28 program; replacing references to the Department
29 of Commerce and the Division of Economic
30 Development with the Office of Tourism, Trade,
31 and Economic Development, and references to the
1
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1 Secretary of Commerce with the director of the
2 office; revising provisions relating to the
3 limitation on such refunds; extending the
4 expiration date for certification for such
5 refunds; amending s. 288.106, F.S., relating to
6 the tax refund program for qualified target
7 industry businesses; providing for
8 determination of number of employees for
9 businesses registered as a statewide reporting
10 unit; revising requirements to qualify as an
11 expansion of an existing business or a rural
12 county; revising the counties to which the
13 local financial support exemption option
14 applies; revising requirements for determining
15 the amount of tax refund payments; revising the
16 limitations on refunds for projects located in
17 an enterprise zone, rural county, or rural
18 city; authorizing acceptance of a letter from
19 an authorized local economic development agency
20 prior to passage of the required resolution by
21 the local government; authorizing reduction of
22 certain employment requirements for an
23 expanding business in a rural city or county or
24 enterprise zone under certain conditions;
25 revising requirements relating to application
26 approval; authorizing certification of less
27 than allowable refunds under certain
28 conditions; revising requirements relating to
29 the tax refund agreement; authorizing inclusion
30 of the value of county or municipal land
31 conveyed to a business in the required local
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1 financial support; authorizing the office to
2 contract with Enterprise Florida, Inc., for
3 certain administrative duties; amending s.
4 288.107, F.S.; correcting a reference; creating
5 the Institute on Urban Policy and Commerce at
6 Florida Agricultural and Mechanical University
7 and providing its purposes and duties;
8 providing for the establishment of regional
9 urban centers; requiring annual reports by the
10 institute and the Governor; providing
11 legislative findings with respect to attracting
12 certain high-impact business facilities to the
13 state; creating the Florida Economic
14 Opportunities Incentive Fund within the Office
15 of Tourism, Trade, and Economic Development and
16 providing for transfer of certain funds
17 thereto; directing Enterprise Florida, Inc., to
18 evaluate proposals for use of funds for such
19 facilities and make recommendations to the
20 office; requiring approval by the Governor;
21 providing for a contract between the director
22 of the office and an approved business with
23 respect to payment of such funds; requiring
24 Enterprise Florida, Inc., to validate
25 contractor performance; requiring a report;
26 providing legislative findings with respect to
27 the economic health of small communities;
28 providing conditions for determining when a
29 state of economic emergency exists in a
30 community; providing for notification by a
31 local government entity to the Governor, the
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1 office, and Enterprise Florida, Inc., when such
2 conditions exist; authorizing the Governor to
3 waive eligibility criteria for certain programs
4 or activities and take other action to resolve
5 the economic emergency; providing effective
6 dates.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Paragraph (g) of subsection (2) of section
11 14.2015, Florida Statutes, 1998 Supplement, is amended, and
12 subsection (10) is added to said section, to read:
13 14.2015 Office of Tourism, Trade, and Economic
14 Development; creation; powers and duties.--
15 (2) The purpose of the Office of Tourism, Trade, and
16 Economic Development is to assist the Governor in working with
17 the Legislature, state agencies, business leaders, and
18 economic development professionals to formulate and implement
19 coherent and consistent policies and strategies designed to
20 provide economic opportunities for all Floridians. To
21 accomplish such purposes, the Office of Tourism, Trade, and
22 Economic Development shall:
23 (g)1. Administer the Florida Enterprise Zone Act under
24 ss. 290.001-290.016, the community contribution tax credit
25 program under ss. 220.183 and 624.5105, the tax refund program
26 for qualified target industry businesses under s. 288.106 and
27 for qualified defense contractors under s. 288.1045,
28 high-impact performance incentives under s. 288.108, the base
29 realignment and closure grants under s. 288.980(2)(a), Florida
30 defense planning grants under s. 288.980(3)(a), the Florida
31 Defense Implementation Grant Program under s. 288.980(3)(b),
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1 military installation reuse planning and marketing grants
2 under s. 288.980(3)(c), the defense-related business
3 adjustment grant program under s. 288.980(4), the urban
4 high-crime area job tax credit under s. 212.097, the rural job
5 tax credit under s. 212.098, the WAGES pilot matching grant
6 program under s. 8, chapter 97-278, Laws of Florida, the
7 silicon technology sales tax exemption under s. 212.08(5)(j),
8 brownfield redevelopment bonus refunds under s. 288.107, the
9 brownfield areas loan guarantee program under s. 376.86,
10 expedited permitting under s. 403.973(9), contracts for
11 transportation projects under s. 288.063, the sports franchise
12 facility program under s. 288.1162, the professional golf hall
13 of fame facility program under s. 288.1168, the Florida Jobs
14 Siting Act under ss. 403.950-403.972, the Rural Community
15 Development Revolving Loan Fund under s. 288.065, the Regional
16 Rural Development Grants Program under s. 288.018, the
17 Certified Capital Company Act under s. 288.99, the Florida
18 State Rural Development Council, and the Rural Economic
19 Development Initiative. Notwithstanding the provisions of the
20 laws cited in this subparagraph, the office may expend
21 interest earned from the investment of program funds deposited
22 in the Economic Development Trust Fund, the Grants and
23 Donations Trust Fund, the Brownfield Property Ownership
24 Clearance Assistance Revolving Loan Trust Fund, and the
25 Economic Development Transportation Trust Fund to contract for
26 the administration of the programs, or portions of the
27 programs, enumerated in this subparagraph or similar programs
28 assigned to the office by statute or through the
29 appropriations process. These expenditures shall be subject
30 to review under chapter 216.
31
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1 2. The office may enter into contracts in connection
2 with the fulfillment of its duties concerning the Florida
3 First Business Bond Pool under chapter 159, tax incentives
4 under chapters 212 and 220, tax incentives under the Certified
5 Capital Company Act in chapter 288, foreign offices under
6 chapter 288, the Enterprise Zone program under chapter 290,
7 the Seaport Employment Training program under chapter 311, the
8 Florida Professional Sports Team License Plates under chapter
9 320, Spaceport Florida under chapter 331, Job Siting and
10 Expedited Permitting under chapter 403, the Rural Community
11 Development Revolving Loan Fund under s. 288.065, the Regional
12 Rural Development Grants Program under s. 288.018, the
13 Certified Capital Company Act under s. 288.99, the Florida
14 State Rural Development Council, the Rural Economic
15 Development Initiative, the tax refund program for qualified
16 target industry businesses under s. 288.106 and for qualified
17 defense contractors under s. 288.1045, high-impact performance
18 incentives under s. 288.108, the base realignment and closure
19 grants under s. 288.980(2)(a), Florida defense planning grants
20 under s. 288.980(3)(a), the Florida Defense Implementation
21 Grant Program under s. 288.980(3)(b), military installation
22 reuse planning and marketing grants under s. 288.980(3)(c),
23 the defense-related business adjustment grant program under s.
24 288.980(4), the urban high-crime area job tax credit under s.
25 212.097, the rural job tax credit under s. 212.098, the WAGES
26 pilot matching grant program under s. 8, chapter 97-278, Laws
27 of Florida, the silicon technology sales tax exemption under
28 s. 212.08(5)(j), brownfield redevelopment bonus refunds under
29 s. 288.107, the brownfield areas loan guarantee program under
30 s. 376.86, expedited permitting under 403.973(9), contracts
31 for transportation projects under s. 288.063, and in carrying
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1 out other functions that are specifically assigned to the
2 office by law or through the appropriations process.
3 (10)(a) The Office of Urban Opportunity is created
4 within the Office of Tourism, Trade, and Economic Development.
5 The director of the Office of Urban Opportunity shall be
6 appointed by and serve at the pleasure of the Governor.
7 (b) The purpose of the Office of Urban Opportunity
8 shall be to administer the Front Porch Florida initiative, a
9 comprehensive, community-based urban core redevelopment
10 program that will empower urban core residents to craft
11 solutions to the unique challenges of each designated
12 community.
13 Section 2. Section 14.2019, Florida Statutes, is
14 created to read:
15 14.2019 Florida Trade Council.--
16 (1) The Florida Trade Council is created within the
17 Executive Office of the Governor. The council shall be
18 responsible for assisting the Governor and Legislature in the
19 establishment and maintenance of this state's global
20 competitiveness by the development of a strategic statewide
21 plan which will incorporate the different components of this
22 state's major international trade and infrastructure programs
23 and assure the strategic integration of each component.
24 (2)(a) The council shall consist of the following 12
25 members: the director of the Office of Tourism, Trade, and
26 Economic Development, the Commissioner of Agriculture or his
27 or her designee, the Secretary of State or his or her
28 designee, the Secretary of Transportation or his or her
29 designee, a representative from Enterprise Florida, Inc., a
30 representative from the Florida Seaport Transportation and
31 Economic Development Council, a private sector representative
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1 to be designated by the President of the Senate, a private
2 sector representative to be designated by the Speaker of the
3 House of Representatives, and four private sector members
4 nominated by the above eight members and appointed by the
5 Governor.
6 (b) The director of the Office of Tourism, Trade, and
7 Economic Development shall serve as the chair of the council.
8 (c) Members appointed by the Governor, representatives
9 from Enterprise Florida, Inc., and the Florida Seaport
10 Transportation and Economic Development Council, and
11 representatives designated by the President of the Senate and
12 the Speaker of the House of Representatives shall serve for
13 terms of 4 years. During the initial establishment of the
14 council, the terms of two of the Governor's appointments and
15 the representatives appointed by the President of the Senate
16 and the Speaker of the House of Representatives shall be 2
17 years.
18 (d) Members of the council shall serve without
19 compensation but are entitled to receive reimbursement for per
20 diem and travel expenses as provided in s. 112.061.
21 (3)(a) The council shall develop and fund a
22 comprehensive strategic plan for the establishment and
23 maintenance of a statewide international program that
24 contains, at a minimum, the following elements:
25 1. The international programs of the entities
26 represented on the council, including international and
27 cultural relations plans developed by the Secretary of State
28 pursuant to s. 15.18; the strategic development plan of
29 Enterprise Florida, Inc., developed pursuant to s.
30 288.905(2)(g); and the 5-year Florida Seaport Mission Plan and
31 seaport intermodal projects developed by the Florida Seaport
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1 Transportation and Economic Development Council pursuant to s.
2 311.09(3).
3 2. A commercial strategy for regions and countries
4 that are this state's strategic trading partners, as well as
5 emerging markets that present potential benefits for Florida's
6 economy. The plan shall consolidate and improve upon
7 information obtained from Enterprise Florida, Inc., the
8 Florida Trade Data Center, local economic development
9 organizations, and federal databases.
10 3. Identification of international policy issues
11 relating to economic, social, and cultural matters.
12 4. Identification of trade development programs that
13 will enhance the capabilities of minority businesses to access
14 global markets.
15 5. Performance measures to ensure that state funds are
16 expended appropriately and efficiently.
17 (b) Based on the amount appropriated to the Florida
18 International Trade and Promotion Trust Fund for the council,
19 the council shall allocate appropriate resources to those
20 activities and programs that incorporate the strategies
21 delineated in the plan. The council shall act as a wholesale
22 agent for such activities and programs, and shall leverage
23 such resources when possible by funding programs, activities,
24 and services of existing state and local service providers
25 that facilitate the strategies delineated in the plan.
26 (4) The council shall create a transportation
27 improvement plan for economic development projects.
28 (5) The council shall have all the powers necessary
29 and convenient to carry out and effectuate the purposes and
30 provisions of this section, including, but not limited to, the
31 power to make and enter into contracts and other instruments
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1 with public or private sector entities for the purpose of
2 exercising or performing its powers and functions.
3 (6) The Governor shall appoint an executive director
4 who shall serve under the direction, supervision, and control
5 of the council. The executive director may employ additional
6 staff as may be necessary and as authorized by the council.
7 All employees of the council are exempt from part II of
8 chapter 110 and shall serve at the pleasure of the council.
9 The salaries and benefits of all employees of the council
10 shall be set in accordance with the Selected Exempt Service;
11 provided, the council shall have complete authority for fixing
12 the salary of the executive director.
13 Section 3. Paragraphs (a) and (b) of subsection (3) of
14 section 288.095, Florida Statutes, are amended to read:
15 288.095 Economic Development Trust Fund.--
16 (3)(a) Contingent upon an annual appropriation by the
17 Legislature, The Office of Tourism, Trade, and Economic
18 Development may approve applications for certification tax
19 refunds pursuant to ss. 288.1045(3), and 288.106(4), and
20 288.107. However, in no case shall the total state share of
21 tax refund payments scheduled in all active certifications for
22 any one fiscal year exceed $35 million. The office may not
23 approve tax refunds in excess of the amount appropriated to
24 the Economic Development Incentives Account for such tax
25 refunds, for a fiscal year pursuant to paragraph (b).
26 (b) The total amount of tax refund claims refunds
27 approved for payment by the Office of Tourism, Trade, and
28 Economic Development based on actual project performance
29 pursuant to ss. 288.1045, 288.106, and 288.107 shall not
30 exceed the amount appropriated to the Economic Development
31 Incentives Account for such purposes for the fiscal year. In
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1 the event the Legislature does not appropriate an amount
2 sufficient to satisfy projections by the office for tax
3 refunds under ss. 288.1045, 288.106, and 288.107 in a fiscal
4 year, the Office of Tourism, Trade, and Economic Development
5 shall, not later than July 15 of such year, determine the
6 proportion of each refund claim which shall be paid by
7 dividing the amount appropriated for tax refunds for the
8 fiscal year by the projected total of refund claims for the
9 fiscal year. The amount of each claim for a tax refund shall
10 be multiplied by the resulting quotient. If, after the payment
11 of all such refund claims, funds remain in the Economic
12 Development Incentives Account for tax refunds, the office
13 shall recalculate the proportion for each refund claim and
14 adjust the amount of each claim accordingly.
15 Section 4. Effective June 30, 1999, section 288.1045,
16 Florida Statutes, is amended to read:
17 288.1045 Qualified defense contractor tax refund
18 program.--
19 (1) DEFINITIONS.--As used in this section:
20 (a) "Consolidation of a Department of Defense
21 contract" means the consolidation of one or more of an
22 applicant's facilities under one or more Department of Defense
23 contracts either from outside this state or from inside and
24 outside this state, into one or more of the applicant's
25 facilities inside this state.
26 (b) "Average wage in the area" means the average of
27 all wages and salaries in the state, the county, or in the
28 standard metropolitan area in which the business unit is
29 located.
30 (c) "Applicant" means any business entity that holds a
31 valid Department of Defense contract or any business entity
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1 that is a subcontractor under a valid Department of Defense
2 contract or any business entity that holds a valid contract
3 for the reuse of a defense-related facility, including all
4 members of an affiliated group of corporations as defined in
5 s. 220.03(1)(b).
6 (d) "Office" "Division" means the Office of Tourism,
7 Trade, and Economic Development Division of Economic
8 Development of the Department of Commerce.
9 (e) "Department of Defense contract" means a
10 competitively bid Department of Defense contract or a
11 competitively bid federal agency contract issued on behalf of
12 the Department of Defense for manufacturing, assembling,
13 fabricating, research, development, or design with a duration
14 of 2 or more years, but excluding any contract to provide
15 goods, improvements to real or tangible property, or services
16 directly to or for any particular military base or
17 installation in this state.
18 (f) "New Department of Defense contract" means a
19 Department of Defense contract entered into after the date
20 application for certification as a qualified applicant is made
21 and after January 1, 1994.
22 (g) "Jobs" means full-time equivalent positions,
23 consistent with the use of such terms by the Department of
24 Labor and Employment Security for the purpose of unemployment
25 compensation tax, resulting directly from a project in this
26 state. This number does not include temporary construction
27 jobs involved with the construction of facilities for the
28 project.
29 (h) "Nondefense production jobs" means employment
30 exclusively for activities that, directly or indirectly, are
31 unrelated to the Department of Defense.
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1 (i) "Project" means any business undertaking in this
2 state under a new Department of Defense contract,
3 consolidation of a Department of Defense contract, or
4 conversion of defense production jobs over to nondefense
5 production jobs or reuse of defense-related facilities.
6 (j) "Qualified applicant" means an applicant that has
7 been approved by the director secretary to be eligible for tax
8 refunds pursuant to this section.
9 (k) "Director" "Secretary" means the director of the
10 Office of Tourism, Trade, and Economic Development Secretary
11 of Commerce.
12 (l) "Taxable year" means the same as in s.
13 220.03(1)(z).
14 (m) "Fiscal year" means the fiscal year of the state.
15 (n) "Business unit" means an employing unit, as
16 defined in s. 443.036, that is registered with the Department
17 of Labor and Employment Security for unemployment compensation
18 purposes or means a subcategory or division of an employing
19 unit that is accepted by the Department of Labor and
20 Employment Security as a reporting unit.
21 (o) "Local financial support" means funding from local
22 sources, public or private, which is paid to the Economic
23 Development Trust Fund and which is equal to 20 percent of the
24 annual tax refund for a qualified applicant. Local financial
25 support may include excess payments made to a utility company
26 under a designated program to allow decreases in service by
27 the utility company under conditions, regardless of when
28 application is made. A qualified applicant may not provide,
29 directly or indirectly, more than 5 percent of such funding in
30 any fiscal year. The sources of such funding may not include,
31 directly or indirectly, state funds appropriated from the
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1 General Revenue Fund or any state trust fund, excluding tax
2 revenues shared with local governments pursuant to law.
3 (p) "Contract for reuse of a defense-related facility"
4 means a contract with a duration of 2 or more years for the
5 use of a facility for manufacturing, assembling, fabricating,
6 research, development, or design of tangible personal
7 property, but excluding any contract to provide goods,
8 improvements to real or tangible property, or services
9 directly to or for any particular military base or
10 installation in this state. Such facility must be located
11 within a port, as defined in s. 313.21, and have been occupied
12 by a business entity that held a valid Department of Defense
13 contract or occupied by any branch of the Armed Forces of the
14 United States, within 1 year of any contract being executed
15 for the reuse of such facility. A contract for reuse of a
16 defense-related facility may not include any contract for
17 reuse of such facility for any Department of Defense contract
18 for manufacturing, assembling, fabricating, research,
19 development, or design.
20 (q) "Local financial support exemption option" means
21 the option to exercise an exemption from the local financial
22 support requirement available to any applicant whose project
23 is located in a county designated by the Rural Economic
24 Development Initiative, if the county commissioners of the
25 county in which the project will be located adopt a resolution
26 requesting that the applicant's project be exempt from the
27 local financial support requirement. Any applicant that
28 exercises this option is not eligible for more than 80 percent
29 of the total tax refunds allowed such applicant under this
30 section.
31 (2) GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.--
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1 (a) There shall be allowed, from the Economic
2 Development Trust Fund, a refund to a qualified applicant for
3 the amount of eligible taxes certified by the director
4 secretary which were paid by such qualified applicant. The
5 total amount of refunds for all fiscal years for each
6 qualified applicant shall be determined pursuant to subsection
7 (3). The annual amount of a refund to a qualified applicant
8 shall be determined pursuant to subsection (5).
9 (b) A qualified applicant may not be qualified for any
10 project to receive more than $5,000 times the number of jobs
11 provided in the tax refund agreement pursuant to subparagraph
12 (4)(a)1. A qualified applicant may not receive refunds of more
13 than 25 percent of the total tax refunds provided in the tax
14 refund agreement pursuant to subparagraph (4)(a)1. in any
15 fiscal year, provided that no qualified applicant may receive
16 more than $2.5 million in tax refunds pursuant to this section
17 in any fiscal year.
18 (c) A qualified applicant may not receive more than
19 $7.5 million in tax refunds pursuant to this section in all
20 fiscal years.
21 (d) Contingent upon an annual appropriation by the
22 Legislature, the director secretary may approve no not more
23 than the lesser of $25 million in tax refunds than or the
24 amount appropriated to the Economic Development Trust Fund for
25 tax refunds, for a fiscal year pursuant to subsection (5) and
26 s. 288.095.
27 (e) For the first 6 months of each fiscal year, the
28 director secretary shall set aside 30 percent of the amount
29 appropriated for refunds pursuant to this section by the
30 Legislature to provide tax refunds only to qualified
31 applicants who employ 500 or fewer full-time employees in this
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1 state. Any unencumbered funds remaining undisbursed from this
2 set-aside at the end of the 6-month period may be used to
3 provide tax refunds for any qualified applicants pursuant to
4 this section.
5 (f) After entering into a tax refund agreement
6 pursuant to subsection (4), a qualified applicant may receive
7 refunds from the Economic Development Trust Fund for the
8 following taxes due and paid by the qualified applicant
9 beginning with the applicant's first taxable year that begins
10 after entering into the agreement:
11 1. Taxes on sales, use, and other transactions paid
12 pursuant to chapter 212.
13 2. Corporate income taxes paid pursuant to chapter
14 220.
15 3. Intangible personal property taxes paid pursuant to
16 chapter 199.
17 4. Emergency excise taxes paid pursuant to chapter
18 221.
19 5. Excise taxes paid on documents pursuant to chapter
20 201.
21 6. Ad valorem taxes paid, as defined in s.
22 220.03(1)(a) on June 1, 1996.
23
24 However, a qualified applicant may not receive a tax refund
25 pursuant to this section for any amount of credit, refund, or
26 exemption granted such contractor for any of such taxes. If a
27 refund for such taxes is provided by the office Department of
28 Commerce, which taxes are subsequently adjusted by the
29 application of any credit, refund, or exemption granted to the
30 qualified applicant other than that provided in this section,
31 the qualified applicant shall reimburse the Economic
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1 Development Trust Fund for the amount of such credit, refund,
2 or exemption. A qualified applicant must notify and tender
3 payment to the office Department of Commerce within 20 days
4 after receiving a credit, refund, or exemption, other than
5 that provided in this section.
6 (g) Any qualified applicant who fraudulently claims
7 this refund is liable for repayment of the refund to the
8 Economic Development Trust Fund plus a mandatory penalty of
9 200 percent of the tax refund which shall be deposited into
10 the General Revenue Fund. Any qualified applicant who
11 fraudulently claims this refund commits a felony of the third
12 degree, punishable as provided in s. 775.082, s. 775.083, or
13 s. 775.084.
14 (h) Funds made available pursuant to this section may
15 not be expended in connection with the relocation of a
16 business from one community to another community in this state
17 unless the Office of Tourism, Trade, and Economic Development
18 determines that without such relocation the business will move
19 outside this state or determines that the business has a
20 compelling economic rationale for the relocation which creates
21 additional jobs.
22 (3) APPLICATION PROCESS; REQUIREMENTS; AGENCY
23 DETERMINATION.--
24 (a) To apply for certification as a qualified
25 applicant pursuant to this section, an applicant must file an
26 application with the office division which satisfies the
27 requirements of paragraphs (b) and (e), paragraphs (c) and
28 (e), or paragraphs (d) and (e). An applicant may not apply for
29 certification pursuant to this section after a proposal has
30 been submitted for a new Department of Defense contract, after
31 the applicant has made the decision to consolidate an existing
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1 Department of Defense contract in this state for which such
2 applicant is seeking certification, or after the applicant has
3 made the decision to convert defense production jobs to
4 nondefense production jobs for which such applicant is seeking
5 certification.
6 (b) Applications for certification based on the
7 consolidation of a Department of Defense contract or a new
8 Department of Defense contract must be submitted to the office
9 division as prescribed by the office Department of Commerce
10 and must include, but are not limited to, the following
11 information:
12 1. The applicant's federal employer identification
13 number, the applicant's Florida sales tax registration number,
14 and a notarized signature of an officer of the applicant.
15 2. The permanent location of the manufacturing,
16 assembling, fabricating, research, development, or design
17 facility in this state at which the project is or is to be
18 located.
19 3. The Department of Defense contract numbers of the
20 contract to be consolidated, the new Department of Defense
21 contract number, or the "RFP" number of a proposed Department
22 of Defense contract.
23 4. The date the contract was executed or is expected
24 to be executed, and the date the contract is due to expire or
25 is expected to expire.
26 5. The commencement date for project operations under
27 the contract in this state.
28 6. The number of full-time equivalent jobs in this
29 state which are or will be dedicated to the project during the
30 year and the average wage of such jobs.
31
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1 7. The total number of full-time equivalent employees
2 employed by the applicant in this state.
3 8. The percentage of the applicant's gross receipts
4 derived from Department of Defense contracts during the 5
5 taxable years immediately preceding the date the application
6 is submitted.
7 9. The amount of:
8 a. Taxes on sales, use, and other transactions paid
9 pursuant to chapter 212;
10 b. Corporate income taxes paid pursuant to chapter
11 220;
12 c. Intangible personal property taxes paid pursuant to
13 chapter 199;
14 d. Emergency excise taxes paid pursuant to chapter
15 221;
16 e. Excise taxes paid on documents pursuant to chapter
17 201; and
18 f. Ad valorem taxes paid
19
20 during the 5 fiscal years immediately preceding the date of
21 the application, and the projected amounts of such taxes to be
22 due in the 3 fiscal years immediately following the date of
23 the application.
24 10. The estimated amount of tax refunds to be claimed
25 in each fiscal year.
26 11. A brief statement concerning the applicant's need
27 for tax refunds, and the proposed uses of such refunds by the
28 applicant.
29 12. A resolution adopted by the county commissioners
30 of the county in which the project will be located, which
31 recommends the applicant be approved as a qualified applicant,
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1 and which indicates that the necessary commitments of local
2 financial support for the applicant exist. Prior to the
3 adoption of the resolution, the county commission may review
4 the proposed public or private sources of such support and
5 determine whether the proposed sources of local financial
6 support can be provided or, for any applicant whose project is
7 located in a county designated by the Rural Economic
8 Development Initiative, a resolution adopted by the county
9 commissioners of such county requesting that the applicant's
10 project be exempt from the local financial support
11 requirement.
12 13. Any additional information requested by the office
13 division.
14 (c) Applications for certification based on the
15 conversion of defense production jobs to nondefense production
16 jobs must be submitted to the office division as prescribed by
17 the office Department of Commerce and must include, but are
18 not limited to, the following information:
19 1. The applicant's federal employer identification
20 number, the applicant's Florida sales tax registration number,
21 and a notarized signature of an officer of the applicant.
22 2. The permanent location of the manufacturing,
23 assembling, fabricating, research, development, or design
24 facility in this state at which the project is or is to be
25 located.
26 3. The Department of Defense contract numbers of the
27 contract under which the defense production jobs will be
28 converted to nondefense production jobs.
29 4. The date the contract was executed, and the date
30 the contract is due to expire or is expected to expire, or was
31 canceled.
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1 5. The commencement date for the nondefense production
2 operations in this state.
3 6. The number of full-time equivalent jobs in this
4 state which are or will be dedicated to the nondefense
5 production project during the year and the average wage of
6 such jobs.
7 7. The total number of full-time equivalent employees
8 employed by the applicant in this state.
9 8. The percentage of the applicant's gross receipts
10 derived from Department of Defense contracts during the 5
11 taxable years immediately preceding the date the application
12 is submitted.
13 9. The amount of:
14 a. Taxes on sales, use, and other transactions paid
15 pursuant to chapter 212;
16 b. Corporate income taxes paid pursuant to chapter
17 220;
18 c. Intangible personal property taxes paid pursuant to
19 chapter 199;
20 d. Emergency excise taxes paid pursuant to chapter
21 221;
22 e. Excise taxes paid on documents pursuant to chapter
23 201; and
24 f. Ad valorem taxes paid
25
26 during the 5 fiscal years immediately preceding the date of
27 the application, and the projected amounts of such taxes to be
28 due in the 3 fiscal years immediately following the date of
29 the application.
30 10. The estimated amount of tax refunds to be claimed
31 in each fiscal year.
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1 11. A brief statement concerning the applicant's need
2 for tax refunds, and the proposed uses of such refunds by the
3 applicant.
4 12. A resolution adopted by the county commissioners
5 of the county in which the project will be located, which
6 recommends the applicant be approved as a qualified applicant,
7 and which indicates that the necessary commitments of local
8 financial support for the applicant exist. Prior to the
9 adoption of the resolution, the county commission may review
10 the proposed public or private sources of such support and
11 determine whether the proposed sources of local financial
12 support can be provided or, for any applicant whose project is
13 located in a county designated by the Rural Economic
14 Development Initiative, a resolution adopted by the county
15 commissioners of such county requesting that the applicant's
16 project be exempt from the local financial support
17 requirement.
18 13. Any additional information requested by the office
19 division.
20 (d) Applications for certification based on a contract
21 for reuse of a defense-related facility must be submitted to
22 the office division as prescribed by the office Department of
23 Commerce and must include, but are not limited to, the
24 following information:
25 1. The applicant's Florida sales tax registration
26 number and a notarized signature of an officer of the
27 applicant.
28 2. The permanent location of the manufacturing,
29 assembling, fabricating, research, development, or design
30 facility in this state at which the project is or is to be
31 located.
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1 3. The business entity holding a valid Department of
2 Defense contract or branch of the Armed Forces of the United
3 States that previously occupied the facility, and the date
4 such entity last occupied the facility.
5 4. A copy of the contract to reuse the facility, or
6 such alternative proof as may be prescribed by the office
7 department that the applicant is seeking to contract for the
8 reuse of such facility.
9 5. The date the contract to reuse the facility was
10 executed or is expected to be executed, and the date the
11 contract is due to expire or is expected to expire.
12 6. The commencement date for project operations under
13 the contract in this state.
14 7. The number of full-time equivalent jobs in this
15 state which are or will be dedicated to the project during the
16 year and the average wage of such jobs.
17 8. The total number of full-time equivalent employees
18 employed by the applicant in this state.
19 9. The amount of:
20 a. Taxes on sales, use, and other transactions paid
21 pursuant to chapter 212.
22 b. Corporate income taxes paid pursuant to chapter
23 220.
24 c. Intangible personal property taxes paid pursuant to
25 chapter 199.
26 d. Emergency excise taxes paid pursuant to chapter
27 221.
28 e. Excise taxes paid on documents pursuant to chapter
29 201.
30 f. Ad valorem taxes paid during the 5 fiscal years
31 immediately preceding the date of the application, and the
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1 projected amounts of such taxes to be due in the 3 fiscal
2 years immediately following the date of the application.
3 10. The estimated amount of tax refunds to be claimed
4 in each fiscal year.
5 11. A brief statement concerning the applicant's need
6 for tax refunds, and the proposed uses of such refunds by the
7 applicant.
8 12. A resolution adopted by the county commissioners
9 of the county in which the project will be located, which
10 recommends the applicant be approved as a qualified applicant,
11 and which indicates that the necessary commitments of local
12 financial support for the applicant exist. Prior to the
13 adoption of the resolution, the county commission may review
14 the proposed public or private sources of such support and
15 determine whether the proposed sources of local financial
16 support can be provided or, for any applicant whose project is
17 located in a county designated by the Rural Economic
18 Development Initiative, a resolution adopted by the county
19 commissioners of such county requesting that the applicant's
20 project be exempt from the local financial support
21 requirement.
22 13. Any additional information requested by the office
23 division.
24 (e) To qualify for review by the office division, the
25 application of an applicant must, at a minimum, establish the
26 following to the satisfaction of the office division:
27 1. The jobs proposed to be provided under the
28 application, pursuant to subparagraph (b)6. or subparagraph
29 (c)6., must pay an estimated annual average wage equaling at
30 least 115 percent of the average wage in the area where the
31 project is to be located.
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1 2. The consolidation of a Department of Defense
2 contract must result in a net increase of at least 25 percent
3 in the number of jobs at the applicant's facilities in this
4 state or the addition of at least 80 jobs at the applicant's
5 facilities in this state.
6 3. The conversion of defense production jobs to
7 nondefense production jobs must result in net increases in
8 nondefense employment at the applicant's facilities in this
9 state.
10 4. The Department of Defense contract cannot allow the
11 business to include the costs of relocation or retooling in
12 its base as allowable costs under a cost-plus, or similar,
13 contract.
14 5. A business unit of the applicant must have derived
15 not less than 70 percent of its gross receipts in this state
16 from Department of Defense contracts over the applicant's last
17 fiscal year, and must have derived not less than 80 percent of
18 its gross receipts in this state from Department of Defense
19 contracts over the 5 years preceding the date an application
20 is submitted pursuant to this section. This subparagraph does
21 not apply to any application for certification based on a
22 contract for reuse of a defense-related facility.
23 6. The reuse of a defense-related facility must result
24 in the creation of at least 100 jobs at such facility.
25 (f) Each application meeting the requirements of
26 paragraphs (b) and (e), paragraphs (c) and (e), or paragraphs
27 (d) and (e) must be submitted to the office division for a
28 determination of eligibility. The office division shall
29 review, evaluate, and score each application based on, but not
30 limited to, the following criteria:
31
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1 1. Expected contributions to the state strategic
2 economic development plan adopted by Enterprise Florida, Inc.,
3 taking into account the extent to which the project
4 contributes to the state's high-technology base, and the
5 long-term impact of the project and the applicant on the
6 state's economy.
7 2. The economic benefit of the jobs created or
8 retained by the project in this state, taking into account the
9 cost and average wage of each job created or retained, and the
10 potential risk to existing jobs.
11 3. The amount of capital investment to be made by the
12 applicant in this state.
13 4. The local commitment and support for the project
14 and applicant.
15 5. The impact of the project on the local community,
16 taking into account the unemployment rate for the county where
17 the project will be located.
18 6. The dependence of the local community on the
19 defense industry.
20 7. The impact of any tax refunds granted pursuant to
21 this section on the viability of the project and the
22 probability that the project will occur in this state if such
23 tax refunds are granted to the applicant, taking into account
24 the expected long-term commitment of the applicant to economic
25 growth and employment in this state.
26 8. The length of the project, or the expected
27 long-term commitment to this state resulting from the project.
28 (g) The office division shall forward its written
29 findings and evaluation on each application meeting the
30 requirements of paragraphs (b) and (e), paragraphs (c) and
31 (e), or paragraphs (d) and (e) to the director secretary
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1 within 60 calendar days of receipt of a complete application.
2 The office division shall notify each applicant when its
3 application is complete, and when the 60-day period begins. In
4 its written report to the director secretary, the office
5 division shall specifically address each of the factors
6 specified in paragraph (f), and shall make a specific
7 assessment with respect to the minimum requirements
8 established in paragraph (e). The office division shall
9 include in its report projections of the tax refund claims
10 that will be sought by the applicant in each fiscal year based
11 on the information submitted in the application.
12 (h) Within 30 days after receipt of the office's
13 division's findings and evaluation, the director secretary
14 shall enter a final order that either approves or disapproves
15 an application. The decision must be in writing and provide
16 the justifications for either approval or disapproval. If
17 appropriate, the director secretary shall enter into a written
18 agreement with the qualified applicant pursuant to subsection
19 (4).
20 (i) The director secretary may not enter any final
21 order that certifies any applicant as a qualified applicant
22 when the value of tax refunds to be included in that final
23 order exceeds the available amount of authority to enter final
24 orders as determined pursuant to s. 288.095(3) aggregate
25 amount of tax refunds for all qualified applicants projected
26 by the division in any fiscal year exceeds the lesser of $25
27 million or the amount appropriated for tax refunds for that
28 fiscal year. A final order that approves an application must
29 specify the maximum amount of a tax refund that is to be
30 available to the contractor in each fiscal year and the total
31 amount of tax refunds for all fiscal years.
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1 (j) This section does not create a presumption that an
2 applicant should receive any tax refunds under this section.
3 (4) QUALIFIED DEFENSE CONTRACTOR TAX REFUND
4 AGREEMENT.--
5 (a) A qualified applicant shall enter into a written
6 agreement with the office department containing, but not
7 limited to, the following:
8 1. The total number of full-time equivalent jobs in
9 this state that are or will be dedicated to the qualified
10 applicant's project, the average wage of such jobs, the
11 definitions that will apply for measuring the achievement of
12 these terms during the pendency of the agreement, and a time
13 schedule or plan for when such jobs will be in place and
14 active in this state. This information must be the same as the
15 information contained in the application submitted by the
16 contractor pursuant to subsection (3).
17 2. The maximum amount of a refund that the qualified
18 applicant is eligible to receive in each fiscal year.
19 3. An agreement with the office department allowing
20 the office department to review and verify the financial and
21 personnel records of the qualified applicant to ascertain
22 whether the qualified applicant is complying with the
23 requirements of this section.
24 4. The date after which, each fiscal year, the
25 qualified applicant may file an annual claim pursuant to
26 subsection (5).
27 5. That local financial support shall be annually
28 available and will be paid to the Economic Development Trust
29 Fund.
30 (b) Compliance with the terms and conditions of the
31 agreement is a condition precedent for receipt of tax refunds
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1 each year. The failure to comply with the terms and conditions
2 of the agreement shall result in the loss of eligibility for
3 receipt of all tax refunds previously authorized pursuant to
4 this section, and the revocation of the certification as a
5 qualified applicant by the director secretary.
6 (c) The agreement shall be signed by the director
7 secretary and the authorized officer of the qualified
8 applicant.
9 (d) The agreement must contain the following legend,
10 clearly printed on its face in bold type of not less than 10
11 points:
12
13 "This agreement is neither a general obligation
14 of the State of Florida, nor is it backed by
15 the full faith and credit of the State of
16 Florida. Payment of tax refunds are conditioned
17 on and subject to specific annual
18 appropriations by the Florida Legislature of
19 funds sufficient to pay amounts authorized in
20 s. 288.1045 288.104, Florida Statutes."
21
22 (5) ANNUAL CLAIM FOR REFUND FROM A QUALIFIED DEFENSE
23 CONTRACTOR.--
24 (a) Qualified applicants who have entered into a
25 written agreement with the office department pursuant to
26 subsection (4) and who have entered into a valid new
27 Department of Defense contract, commenced the consolidation of
28 a Department of Defense contract, commenced the conversion of
29 defense production jobs to nondefense production jobs or who
30 have entered into a valid contract for reuse of a
31 defense-related facility may apply once each fiscal year to
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1 the office Department of Commerce for tax refunds. The
2 application must be made on or after the date contained in the
3 agreement entered into pursuant to subsection (4) and must
4 include a notarized signature of an officer of the applicant.
5 (b) The claim for refund by the qualified applicant
6 must include a copy of all receipts pertaining to the payment
7 of taxes for which a refund is sought, and data related to
8 achieving each performance item contained in the tax refund
9 agreement pursuant to subsection (4). The amount requested as
10 a tax refund may not exceed the amount for the fiscal year in
11 the written agreement entered pursuant to subsection (4).
12 (c) A tax refund may not be approved for any qualified
13 applicant unless local financial support has been paid to the
14 Economic Development Trust Fund in that fiscal year. If the
15 local financial support is less than 20 percent of the
16 approved tax refund, the tax refund shall be reduced. The tax
17 refund paid may not exceed 5 times the local financial support
18 received. Funding from local sources includes tax abatement
19 under s. 196.1995 provided to a qualified applicant. The
20 amount of any tax refund for an applicant approved under this
21 section shall be reduced by the amount of any such tax
22 abatement, and the limitations in subsection (2) and paragraph
23 (3)(h) shall be reduced by the amount of any such tax
24 abatement. A report listing all sources of the local financial
25 support shall be provided to the office division when such
26 support is paid to the Economic Development Trust Fund.
27 (d) The director secretary, with assistance from the
28 office division, the Department of Revenue, and the Department
29 of Labor and Employment Security, shall determine the amount
30 of the tax refund that is authorized for the qualified
31 applicant for the fiscal year in a written final order within
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1 30 days after the date the claim for the annual tax refund is
2 received by the office Department of Commerce.
3 (e) The total amount of tax refunds approved by the
4 director secretary under this section in any fiscal year may
5 not exceed the amount appropriated to the Economic Development
6 Trust Fund for such purposes for the fiscal year. If the
7 Legislature does not appropriate an amount sufficient to
8 satisfy projections by the office division for tax refunds in
9 a fiscal year, the director secretary shall, not later than
10 July 15 of such year, determine the proportion of each refund
11 claim which shall be paid by dividing the amount appropriated
12 for tax refunds for the fiscal year by the projected total
13 amount of refund claims for the fiscal year. The amount of
14 each claim for a tax refund shall be multiplied by the
15 resulting quotient. If, after the payment of all such refund
16 claims, funds remain in the Economic Development Trust Fund
17 for tax refunds, the director secretary shall recalculate the
18 proportion for each refund claim and adjust the amount of each
19 claim accordingly.
20 (f) Upon approval of the tax refund pursuant to
21 paragraphs (c) and (d), the Comptroller shall issue a warrant
22 for the amount included in the final order. In the event of
23 any appeal of the final order, the Comptroller may not issue a
24 warrant for a refund to the qualified applicant until the
25 conclusion of all appeals of the final order.
26 (g) A prorated tax refund, less a 5 percent penalty,
27 shall be approved for a qualified applicant provided all other
28 applicable requirements have been satisfied and the applicant
29 proves to the satisfaction of the director that it has
30 achieved at least 80 percent of its projected employment.
31 (6) ADMINISTRATION.--
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1 (a) The office may department shall adopt rules
2 pursuant to chapter 120 for the administration of this
3 section.
4 (b) The office department may verify information
5 provided in any claim submitted for tax credits under this
6 section with regard to employment and wage levels or the
7 payment of the taxes with the appropriate agency or authority
8 including the Department of Revenue, the Department of Labor
9 and Employment Security, or any local government or authority.
10 (c) To facilitate the process of monitoring and
11 auditing applications made under this program, the office
12 department may provide a list of qualified applicants to the
13 Department of Revenue, the Department of Labor and Employment
14 Security, or to any local government or authority. The office
15 department may request the assistance of said entities with
16 respect to monitoring the payment of the taxes listed in
17 subsection (2).
18 (d) By December 1 of each year, the office department
19 shall submit a complete and detailed report to the Governor,
20 the President of the Senate, and the Speaker of the House of
21 Representatives of all tax refunds paid under this section,
22 including analyses of benefits and costs, types of projects
23 supported, employment and investment created, geographic
24 distribution of tax refunds granted, and minority business
25 participation. The report must indicate whether the moneys
26 appropriated by the Legislature to the qualified applicant tax
27 refund program were expended in a prudent, fiducially sound
28 manner.
29 (7) EXPIRATION.--An applicant may not be certified as
30 qualified under this section after June 30, 2003 1999.
31
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1 Section 5. Section 288.106, Florida Statutes, 1998
2 Supplement, is amended to read:
3 288.106 Tax refund program for qualified target
4 industry businesses.--
5 (1) LEGISLATIVE FINDINGS AND DECLARATIONS.--The
6 Legislature finds that attracting, retaining, and providing
7 favorable conditions for the growth of target industries
8 provides high-quality employment opportunities for citizens of
9 this state and enhances the economic foundations of this
10 state. It is the policy of this state to encourage the growth
11 of a high-value-added employment and economic base by
12 providing tax refunds to qualified target industry businesses
13 that create new high-wage employment opportunities in this
14 state by expanding existing businesses within this state or by
15 bringing new businesses to this state.
16 (2) DEFINITIONS.--As used in this section:
17 (a) "Account" means the Economic Development
18 Incentives Account within the Economic Development Trust Fund
19 established under s. 288.095.
20 (b) "Authorized local economic development agency"
21 means any public or private entity, including those defined by
22 s. 288.075(1), authorized by a county or municipality to
23 promote the general business or industrial interests of that
24 county or municipality.
25 (c)(b) "Average private sector wage in the area" means
26 the statewide private sector average wage or the average of
27 all private sector wages and salaries in the county or in the
28 standard metropolitan area in which the business is located.
29 (d)(c) "Business" means an employing unit, as defined
30 in s. 443.036, which is registered with the Department of
31 Labor and Employment Security for unemployment compensation
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1 purposes or a subcategory or division of an employing unit
2 which is accepted by the Department of Labor and Employment
3 Security as a reporting unit. In the event a business chooses
4 to register with the Department of Labor and Employment
5 Security as a statewide reporting unit, only the employees
6 located at the physical site of the qualified target industry
7 project shall be considered employees of the business.
8 (e)(d) "Corporate headquarters business" means an
9 international, national, or regional headquarters office of a
10 multinational or multistate business enterprise or national
11 trade association, whether separate from or connected with
12 other facilities used by such business.
13 (f)(e) "Office" means the Office of Tourism, Trade,
14 and Economic Development.
15 (g)(f) "Enterprise zone" means an area designated as
16 an enterprise zone pursuant to s. 290.0065.
17 (h)(g) "Expansion of an existing business" means the
18 expansion of an existing Florida a business by or through
19 additions to real and personal property on a site colocated
20 with a commercial or industrial operation owned by the same
21 business, resulting in a net increase in employment of not
22 less than 10 percent at such business.
23 (i)(h) "Fiscal year" means the fiscal year of the
24 state.
25 (j)(i) "Jobs" means full-time equivalent positions, as
26 such terms are consistent with terms used by the Department of
27 Labor and Employment Security and the United States Department
28 of Labor for purposes of unemployment compensation tax
29 administration and employment estimation, resulting directly
30 from a project in this state. This number shall not include
31 temporary construction jobs involved with the construction of
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1 facilities for the project or any jobs which have previously
2 been included in any application for tax refunds under s.
3 288.104 or this section.
4 (k)(j) "Local financial support" means funding from
5 local sources, public or private, which is paid to the
6 Economic Development Trust Fund and which is equal to 20
7 percent of the annual tax refund for a qualified target
8 industry business. A qualified target industry business may
9 not provide, directly or indirectly, more than 5 percent of
10 such funding in any fiscal year. The sources of such funding
11 may not include, directly or indirectly, state funds
12 appropriated from the General Revenue Fund or any state trust
13 fund, excluding tax revenues shared with local governments
14 pursuant to law.
15 (l)(k) "Local financial support exemption option"
16 means the option to exercise an exemption from the local
17 financial support requirement available to any applicant whose
18 project is located in a county with a population of 75,000 or
19 less, or in a county with a population of 100,000 or less
20 which is contiguous to a county with a population of 75,000 or
21 less designated by the Rural Economic Development Initiative.
22 Any applicant that exercises this option shall not be eligible
23 for more than 80 percent of the total tax refunds allowed such
24 applicant under this section.
25 (m)(l) "New business" means a business which
26 heretofore did not exist in this state, first beginning
27 operations on a site located in this state and clearly
28 separate from any other commercial or industrial operations
29 owned by the same business.
30 (n)(m) "Project" means the creation of a new business
31 or expansion of an existing business.
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1 (o)(n) "Director" means the Director of the Office of
2 Tourism, Trade, and Economic Development.
3 (p)(o) "Target industry business" means a corporate
4 headquarters business or any business that is engaged in one
5 of the target industries identified pursuant to the following
6 criteria developed by the office in consultation with
7 Enterprise Florida, Inc.:
8 1. Future growth.--Industry forecasts should indicate
9 strong expectation for future growth in both employment and
10 output, according to the most recent available data. Special
11 consideration should be given to Florida's growing access to
12 international markets or to replacing imports.
13 2. Stability.--The industry should not be subject to
14 periodic layoffs, whether due to seasonality or sensitivity to
15 volatile economic variables such as weather. The industry
16 should also be relatively resistant to recession, so that the
17 demand for products of this industry is not necessarily
18 subject to decline during an economic downturn.
19 3. High wage.--The industry should pay relatively high
20 wages compared to statewide or area averages.
21 4. Market and resource independent.--The location of
22 industry businesses should not be dependent on Florida markets
23 or resources as indicated by industry analysis.
24 5. Industrial base diversification and
25 strengthening.--The industry should contribute toward
26 expanding or diversifying the state's or area's economic base,
27 as indicated by analysis of employment and output shares
28 compared to national and regional trends. Special
29 consideration should be given to industries that strengthen
30 regional economies by adding value to basic products or
31
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1 building regional industrial clusters as indicated by industry
2 analysis.
3 6. Economic benefits.--The industry should have strong
4 positive impacts on or benefits to the state and regional
5 economies.
6
7 The office, in consultation with Enterprise Florida, Inc.,
8 shall develop a list of such target industries annually and
9 submit such list as part of the final agency legislative
10 budget request submitted pursuant to s. 216.023(1). A target
11 industry business may not include any industry engaged in
12 retail activities; any electrical utility company; any
13 phosphate or other solid minerals severance, mining, or
14 processing operation; any oil or gas exploration or production
15 operation; or any firm subject to regulation by the Division
16 of Hotels and Restaurants of the Department of Business and
17 Professional Regulation.
18 (q)(p) "Taxable year" means taxable year as defined in
19 s. 220.03(1)(z).
20 (r)(q) "Qualified target industry business" means a
21 target industry business that has been approved by the
22 director to be eligible for tax refunds pursuant to this
23 section.
24 (s)(r) "Rural county" means a county with a population
25 of 75,000 or less, or a county with a population of 100,000 or
26 less which is contiguous to a county with a population of
27 75,000 or less.
28 (t)(s) "Rural city" means a city with a population of
29 10,000 or less, or a city with a population of greater than
30 10,000 but less than 20,000 which has been determined by the
31 Office of Tourism, Trade, and Economic Development to have
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1 economic characteristics such as, but not limited to, a
2 significant percentage of residents on public assistance, a
3 significant percentage of residents with income below the
4 poverty level, or a significant percentage of the city's
5 employment base in agriculture-related industries.
6 (3) TAX REFUND; ELIGIBLE AMOUNTS.--
7 (a) There shall be allowed, from the account, a refund
8 to a qualified target industry business for the amount of
9 eligible taxes certified by the director which were paid by
10 such business. The total amount of refunds for all fiscal
11 years for each qualified target industry business must be
12 determined pursuant to subsection (4). The annual amount of a
13 refund to a qualified target industry business must be
14 determined pursuant to subsection (6).
15 (b) Upon approval by the director, a qualified target
16 industry business shall be allowed tax refund payments equal
17 to $3,000 times the number of jobs specified in the tax refund
18 agreement under subparagraph (5)(a)1., or equal to $6,000
19 times the number of jobs if the project is located in a rural
20 county or city or an enterprise zone. Further, a qualified
21 target industry business shall be allowed additional tax
22 refund payments equal to $1,000 times the number of jobs
23 specified in the tax refund agreement under subparagraph
24 (5)(a)1. if such jobs pay an annual average wage of at least
25 150 percent of the average private sector wage in the area, or
26 equal to $2,000 times the number of jobs if such jobs pay an
27 annual average wage of at least 200 percent of the average
28 private sector wage in the area. The director may approve a
29 qualified target industry business to receive tax refund
30 payments of up to $5,000 times the number of jobs specified in
31 the tax refund agreement under subparagraph (5)(a)1., or up to
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1 $7,500 times the number of jobs if the project is located in
2 an enterprise zone. A qualified target industry business may
3 not receive refund payments of more than 25 percent of the
4 total tax refunds specified in the tax refund agreement under
5 subparagraph (5)(a)1. in any fiscal year. Further, a qualified
6 target industry business may not receive more than $1.5
7 million in refunds under this section in any single fiscal
8 year, or more than $3 $2.5 million in any single fiscal year
9 if the project is located in an enterprise zone, rural county,
10 or rural city. A qualified target industry may not receive
11 more than $5 million in refund payments under this section in
12 all fiscal years, or more than $10 $7.5 million if the project
13 is located in an enterprise zone, rural county, or rural city.
14 Funds made available pursuant to this section may not be
15 expended in connection with the relocation of a business from
16 one community to another community in this state unless the
17 Office of Tourism, Trade, and Economic Development determines
18 that without such relocation the business will move outside
19 this state or determines that the business has a compelling
20 economic rationale for the relocation and that the relocation
21 will create additional jobs.
22 (c) After entering into a tax refund agreement under
23 subsection (5), a qualified target industry business may
24 receive refunds from the account for the following taxes due
25 and paid by that business beginning with the first taxable
26 year of the business which begins after entering into the
27 agreement:
28 1. Taxes on sales, use, and other transactions under
29 chapter 212.
30 2. Corporate income taxes under chapter 220.
31
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1 3. Intangible personal property taxes under chapter
2 199.
3 4. Emergency excise taxes under chapter 221.
4 5. Excise taxes on documents under chapter 201.
5 6. Ad valorem taxes paid, as defined in s. 220.03(1).
6 7. Insurance premium tax under s. 624.509.
7
8 However, a qualified target industry business may not receive
9 a refund under this section for any amount of credit, refund,
10 or exemption granted to that business for any of such taxes.
11 If a refund for such taxes is provided by the office, which
12 taxes are subsequently adjusted by the application of any
13 credit, refund, or exemption granted to the qualified target
14 industry business other than as provided in this section, the
15 business shall reimburse the account for the amount of that
16 credit, refund, or exemption. A qualified target industry
17 business shall notify and tender payment to the office within
18 20 days after receiving any credit, refund, or exemption other
19 than one provided in this section.
20 (d) A qualified target industry business that
21 fraudulently claims a refund under this section:
22 1. Is liable for repayment of the amount of the refund
23 to the account, plus a mandatory penalty in the amount of 200
24 percent of the tax refund which shall be deposited into the
25 General Revenue Fund.
26 2. Is guilty of a felony of the third degree,
27 punishable as provided in s. 775.082, s. 775.083, or s.
28 775.084.
29 (4) APPLICATION AND APPROVAL PROCESS.--
30 (a) To apply for certification as a qualified target
31 industry business under this section, the business must file
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1 an application with the office before the business has made
2 the decision to locate a new business in this state or before
3 the business had made the decision to expand an existing
4 business in this state. The application shall include, but is
5 not limited to, the following information:
6 1. The applicant's federal employer identification
7 number and the applicant's state sales tax registration
8 number.
9 2. The permanent location of the applicant's facility
10 in this state at which the project is or is to be located.
11 3. A description of the type of business activity or
12 product covered by the project, including four-digit SIC codes
13 for all activities included in the project.
14 4. The number of full-time equivalent jobs in this
15 state that are or will be dedicated to the project and the
16 average wage of those jobs. If more than one type of business
17 activity or product is included in the project, the number of
18 jobs and average wage for those jobs must be separately stated
19 for each type of business activity or product.
20 5. The total number of full-time equivalent employees
21 employed by the applicant in this state.
22 6. The anticipated commencement date of the project.
23 7. The amount of:
24 a. Taxes on sales, use, and other transactions paid
25 under chapter 212;
26 b. Corporate income taxes paid under chapter 220;
27 c. Intangible personal property taxes paid under
28 chapter 199;
29 d. Emergency excise taxes paid under chapter 221; and
30 e. Excise taxes on documents paid under chapter 201.
31
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1 8. The estimated amount of tax refunds to be claimed
2 in each fiscal year.
3 9. A brief statement concerning the role that the tax
4 refunds requested will play in the decision of the applicant
5 to locate or expand in this state.
6 10. An estimate of the proportion of the sales
7 resulting from the project that will be made outside this
8 state.
9 11. A resolution adopted by the governing board of the
10 county or municipality in which the project will be located,
11 which resolution recommends that certain types of businesses
12 be approved as a qualified target industry business and states
13 that the commitments of local financial support necessary for
14 the target industry business exist. In advance of the passage
15 of such resolution, the office may also accept an official
16 letter from an authorized local economic development agency
17 which endorses the proposed target industry project and
18 pledges that sources of local financial support for such
19 project exist. For the purpose of making pledges of local
20 financial support under this subsection, the authorized local
21 economic development agency shall be officially designated by
22 the passage of a resolution by the local governing authority.
23 Before adoption of the resolution, the governing board may
24 review the proposed public or private sources of such support
25 and determine whether the proposed sources of local financial
26 support can be provided.
27 12. Any additional information requested by the
28 office.
29 (b) To qualify for review by the office, the
30 application of a target industry business must, at a minimum,
31 establish the following to the satisfaction of the office:
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1 1. The jobs proposed to be provided under the
2 application, pursuant to subparagraph (a)4., must pay an
3 estimated annual average wage equaling at least 115 percent of
4 the average private sector wage in the area where the business
5 is to be located or the statewide private sector average wage.
6 The office may waive this average wage requirement at the
7 request of the local governing body recommending the project
8 and Enterprise Florida, Inc. The wage requirement may only be
9 waived for a project located in a brownfield area designated
10 under s. 376.80 or in a rural city or county or in an
11 enterprise zone and only when the merits of the individual
12 project or the specific circumstances in the community in
13 relationship to the project warrant such action. If the local
14 governing body and Enterprise Florida, Inc., make such a
15 recommendation, it must be transmitted in writing and the
16 specific justification for the waiver recommendation must be
17 explained. If the director elects to waive the wage
18 requirement, the waiver must be stated in writing and the
19 reasons for granting the waiver must be explained.
20 2. The target industry business's project must result
21 in the creation of at least 10 jobs at such project and, if an
22 expansion of an existing business, must result in a net
23 increase in employment of not less than 10 percent at such
24 business. However, at the request of the local governing body
25 recommending the project and Enterprise Florida, Inc., the
26 office may approve an expansion of an existing business under
27 this section in a rural city, a rural county, or an enterprise
28 zone that results in a net increase in employment of less than
29 10 percent at the business if the merits of the individual
30 project or the specific circumstances in the community in
31 relation to the project warrant this action. If the local
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1 governing body and Enterprise Florida, Inc., make such a
2 request, it must be transmitted in writing and the specific
3 justification for the request must be explained. If the
4 director elects to accept such request, this decision must be
5 stated in writing and the reasons for granting the request
6 must be explained.
7 3. The business activity or product for the
8 applicant's project is within an industry or industries that
9 have been identified by the office to be high-value-added
10 industries that contribute to the area and to the economic
11 growth of the state and that produce a higher standard of
12 living for citizens of this state in the new global economy or
13 that can be shown to make an equivalent contribution to the
14 area and state's economic progress. The director must approve
15 requests to waive the wage requirement for brownfield areas
16 designated under s. 376.80 unless it is demonstrated that such
17 action is not in the public interest.
18 (c) Each application meeting the requirements of
19 paragraph (b) must be submitted to the office for
20 determination of eligibility. The office shall review and
21 evaluate each application based on, but not limited to, the
22 following criteria:
23 1. Expected contributions to the state strategic
24 economic development plan adopted by Enterprise Florida, Inc.,
25 taking into account the long-term effects of the project and
26 of the applicant on the state economy.
27 2. The economic benefit of the jobs created by the
28 project in this state, taking into account the cost and
29 average wage of each job created.
30 3. The amount of capital investment to be made by the
31 applicant in this state.
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1 4. The local commitment and support for the project.
2 5. The effect of the project on the local community,
3 taking into account the unemployment rate for the county where
4 the project will be located.
5 6. The effect of any tax refunds granted pursuant to
6 this section on the viability of the project and the
7 probability that the project will be undertaken in this state
8 if such tax refunds are granted to the applicant, taking into
9 account the expected long-term commitment of the applicant to
10 economic growth and employment in this state.
11 7. The expected long-term commitment to this state
12 resulting from the project.
13 8. A review of the business's past activities in this
14 state or other states, including whether such business has
15 been subjected to criminal or civil fines and penalties.
16 Nothing in this subparagraph shall require the disclosure of
17 confidential information.
18 (d) The office shall forward its written findings and
19 evaluation concerning each application meeting the
20 requirements of paragraph (b) to the director within 45
21 calendar days after receipt of a complete application. The
22 office shall notify each target industry business when its
23 application is complete, and of the time when the 45-day
24 period begins. In its written report to the director, the
25 office shall specifically address each of the factors
26 specified in paragraph (c) and shall make a specific
27 assessment with respect to the minimum requirements
28 established in paragraph (b). The office shall include in its
29 report projections of the tax refund claim that will be sought
30 by the target industry business in each fiscal year based on
31 the information submitted in the application.
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1 (e)1. Within 30 days after receipt of the office's
2 findings and evaluation, the director shall issue a letter of
3 certification enter a final order that either approves or
4 disapproves the application of the target industry business.
5 The decision must be in writing and must provide the
6 justifications for approval or disapproval.
7 2. If appropriate, the director shall enter into a
8 written agreement with the qualified target industry business
9 pursuant to subsection (5).
10 (f) The director may not certify enter a final order
11 that certifies any target industry business as a qualified
12 target industry business if the value of tax refunds to be
13 included in that letter of certification final order exceeds
14 the available amount of authority to certify new businesses
15 enter final orders as determined in s. 288.095(3). In the
16 event the commitments of local financial support represent
17 less than 20 percent of the eligible tax refund payments, or
18 to otherwise preserve the viability and fiscal integrity of
19 the program, the director may certify a qualified target
20 industry business to receive tax refund payments of less than
21 the allowable amounts specified in paragraph (3)(b). A letter
22 of certification final order that approves an application must
23 specify the maximum amount of tax refund that will be
24 available to the qualified industry business in each fiscal
25 year and the total amount of tax refunds that will be
26 available to the business for all fiscal years.
27 (g) Nothing in this section shall create a presumption
28 that an applicant will receive any tax refunds under this
29 section. However, the office may issue nonbinding opinion
30 letters, upon the request of prospective applicants, as to the
31 applicants' eligibility and the potential amount of refunds.
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1 (5) TAX REFUND AGREEMENT.--
2 (a) Each qualified target industry business must enter
3 into a written agreement with the office which specifies, at a
4 minimum:
5 1. The total number of full-time equivalent jobs in
6 this state that will be dedicated to the project, the average
7 wage of those jobs, the definitions that will apply for
8 measuring the achievement of these terms during the pendency
9 of the agreement, and a time schedule or plan for when such
10 jobs will be in place and active in this state. This
11 information must be the same as the information contained in
12 the application submitted by the business under subsection
13 (4).
14 2. The maximum amount of tax refunds which the
15 qualified target industry business is eligible to receive on
16 the project and the maximum amount of a tax refund that the
17 qualified target industry business is eligible to receive in
18 each fiscal year.
19 3. That the office may review and verify the financial
20 and personnel records of the qualified target industry
21 business to ascertain whether that business is in compliance
22 with this section.
23 4. The date after which, in each fiscal year, the
24 qualified target industry business may file an annual claim
25 under subsection (6).
26 5. That local financial support will be annually
27 available and will be paid to the account. The director may
28 not enter into a written agreement with a qualified target
29 industry business if a local financial support resolution is
30 not passed by the local governing authority within 90 days
31
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1 after issuance of the letter of certification pursuant to
2 subsection (4).
3 (b) Compliance with the terms and conditions of the
4 agreement is a condition precedent for the receipt of a tax
5 refund each year. The failure to comply with the terms and
6 conditions of the tax refund agreement results in the loss of
7 eligibility for receipt of all tax refunds previously
8 authorized under this section and the revocation by the
9 director of the certification of the business entity as a
10 qualified target industry business.
11 (c) The agreement must be signed by the director and
12 by an authorized officer of the qualified target industry
13 business within 120 30 days after the issuance of the letter
14 of certification entry of a final order certifying the
15 business entity as a qualified target industry business under
16 subsection (4).
17 (d) The agreement must contain the following legend,
18 clearly printed on its face in bold type of not less than 10
19 points in size: "This agreement is neither a general
20 obligation of the State of Florida, nor is it backed by the
21 full faith and credit of the State of Florida. Payment of tax
22 refunds are conditioned on and subject to specific annual
23 appropriations by the Florida Legislature of moneys sufficient
24 to pay amounts authorized in section 288.106, Florida
25 Statutes."
26 (6) ANNUAL CLAIM FOR REFUND.--
27 (a) A qualified target industry business that has
28 entered into a tax refund agreement with the office under
29 subsection (5) may apply once each fiscal year to the office
30 for a tax refund. The application must be made on or after the
31 date specified in that agreement.
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1 (b) The claim for refund by the qualified target
2 industry business must include a copy of all receipts
3 pertaining to the payment of taxes for which the refund is
4 sought and data related to achievement of each performance
5 item specified in the tax refund agreement. The amount
6 requested as a tax refund may not exceed the amount specified
7 for that fiscal year in that agreement.
8 (c) A tax refund may not be approved for a qualified
9 target industry business unless the required local financial
10 support has been paid into the account in that fiscal year. If
11 the local financial support provided is less than 20 percent
12 of the approved tax refund, the tax refund must be reduced. In
13 no event may the tax refund exceed an amount that is equal to
14 5 times the amount of the local financial support received.
15 Further, funding from local sources includes any tax abatement
16 granted to that business under s. 196.1995, or the appraised
17 market value of municipal or county land conveyed or provided
18 at a discount to that business by any county, municipality, or
19 other public entity.; and The amount of any tax refund for
20 such business approved under this section must be reduced by
21 the amount of any such tax abatement granted or the value of
22 the land granted; and the limitations in subsection (3) and
23 paragraph (4)(f) must be reduced by the amount of any such tax
24 abatement or the value of the land granted. A report listing
25 all sources of the local financial support shall be provided
26 to the office when such support is paid to the account.
27 (d) A prorated tax refund, less a 5-percent penalty,
28 shall be approved for a qualified target industry business
29 provided all other applicable requirements have been satisfied
30 and the business proves to the satisfaction of the director
31
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1 that it has achieved at least 80 percent of its projected
2 employment.
3 (e) The director, with such assistance as may be
4 required from the office, the Department of Revenue, or the
5 Department of Labor and Employment Security, shall specify by
6 written final order the amount of the tax refund that is
7 authorized for the qualified target industry business for the
8 fiscal year within 30 days after the date that the claim for
9 the annual tax refund is received by the office.
10 (f) The total amount of tax refund claims refunds
11 approved by the director under this section in any fiscal year
12 must not exceed the amount authorized under s. 288.095(3).
13 (g) Upon approval of the tax refund under paragraphs
14 (c), (d), and (e), the Comptroller shall issue a warrant for
15 the amount specified in the final order. If the final order is
16 appealed, the Comptroller may not issue a warrant for a refund
17 to the qualified target industry business until the conclusion
18 of all appeals of that order.
19 (7) ADMINISTRATION.--
20 (a) The office is authorized to verify information
21 provided in any claim submitted for tax credits under this
22 section with regard to employment and wage levels or the
23 payment of the taxes to the appropriate agency or authority,
24 including the Department of Revenue, the Department of Labor
25 and Employment Security, or any local government or authority.
26 (b) To facilitate the process of monitoring and
27 auditing applications made under this program, the office may
28 provide a list of qualified target industry businesses to the
29 Department of Revenue, to the Department of Labor and
30 Employment Security, or to any local government or authority.
31 The office may request the assistance of those entities with
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1 respect to monitoring the payment of the taxes listed in
2 subsection (3).
3 (c) The office may contract with Enterprise Florida,
4 Inc., for the administration of the program, or portions of
5 the program, excluding the approval of applications for
6 certification, the issuance of letters of certification, and
7 the final authorization for the payment of tax refund claims.
8 (8) EXPIRATION.--This section expires June 30, 2004.
9 Section 6. Paragraph (e) of subsection (1) of section
10 288.107, Florida Statutes, 1998 Supplement, is amended to
11 read:
12 288.107 Brownfield redevelopment bonus refunds.--
13 (1) DEFINITIONS.--As used in this section:
14 (e) "Eligible business" means a qualified target
15 industry business as defined in s. 288.106(2)(o).
16 Section 7. (1) There is created the Institute on
17 Urban Policy and Commerce as a Type I Institute under the
18 Board of Regents at Florida Agricultural and Mechanical
19 University to improve the quality of life in urban communities
20 through research, teaching, and outreach activities.
21 (2) The major purposes of the institute are to pursue
22 basic and applied research on urban policy issues confronting
23 the inner-city areas and neighborhoods in the state; to
24 influence the equitable allocation and stewardship of federal,
25 state, and local financial resources; to train a new
26 generation of civic leaders and university students interested
27 in approaches to community planning and design; to assist with
28 the planning, development, and capacity building of urban area
29 nonprofit organizations and government agencies; to develop
30 and maintain a database relating to inner-city areas; and to
31
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1 support the community development efforts of inner-city areas,
2 neighborhood-based organizations, and municipal agencies.
3 (3) The institute shall research and recommend
4 strategies concerning critical issues facing the underserved
5 population in urban communities, including, but not limited
6 to, transportation and physical infrastructure; affordable
7 housing; tourism and commerce; environmental restoration; job
8 development and retention; child care; public health;
9 life-long learning; family intervention; public safety; and
10 community relations.
11 (4) The institute shall establish regional urban
12 centers to be located in the inner cities of St. Petersburg,
13 Tampa, Jacksonville, Orlando, West Palm Beach, Fort
14 Lauderdale, Miami, Daytona Beach, and Pensacola to assist
15 urban communities on critical economic, social, and
16 educational problems affecting the underserved population.
17 (5) Before January 1 of each year, the institute shall
18 submit a report of its critical findings and recommendations
19 for the prior year to the President of the Senate, the Speaker
20 of the House of Representatives, and the appropriate
21 committees of the Legislature. The report shall be titled "The
22 State of Unmet Needs in Florida's Urban Communities" and shall
23 include, but is not limited to, a recommended list of
24 resources that could be made available for revitalizing urban
25 communities; significant accomplishments and activities of the
26 institute; and recommendations concerning the expansion,
27 improvement, or termination of the institute.
28 (6) The Governor shall submit an annual report to the
29 Legislature on the unmet needs in the state's urban
30 communities.
31
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1 Section 8. Florida Economic Opportunities Incentive
2 Fund.--
3 (1)(a) The Legislature finds that attracting,
4 retaining, and providing favorable conditions for the growth
5 of certain high-impact business facilities provides widespread
6 economic benefits to the public through high-quality
7 employment opportunities in such facilities and in related
8 facilities attracted to the state, through the increased tax
9 base provided by the high-impact facility and businesses in
10 related sectors, through an enhanced entrepreneurial climate
11 in the state and the resulting business and employment
12 opportunities, and through the stimulation and enhancement of
13 the state's universities and community colleges. In the global
14 economy, there exists serious and fierce international
15 competition for these facilities, and in most instances, when
16 all available resources for economic development have been
17 used, the state continues to encounter severe competitive
18 disadvantages in vying for these high-impact business
19 facilities.
20 (b) The Legislature therefore declares that sufficient
21 resources shall be available to respond to extraordinary
22 economic opportunities and to compete effectively for these
23 high-impact business facilities.
24 (2)(a) There is created within the Office of Tourism,
25 Trade, and Economic Development the Florida Economic
26 Opportunities Incentive Fund.
27 (b) Upon the approval of the Governor, moneys may be
28 transferred to the Florida Economic Opportunities Incentive
29 Fund from the Working Capital Fund or other unappropriated
30 surplus funds, not to exceed $50 million in any one fiscal
31 year.
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1 (3)(a) Enterprise Florida, Inc., shall evaluate
2 individual proposals for high-impact business facilities and
3 forward recommendations regarding the use of moneys in the
4 fund for such facilities to the director of the Office of
5 Tourism, Trade, and Economic Development. Such evaluation and
6 recommendation must include, but need not be limited to:
7 1. A description of the type of facility, its business
8 operation, and the product or service associated with the
9 facility.
10 2. The number of full-time-equivalent jobs that will
11 be created by the facility and the total estimated average
12 annual wages of those jobs.
13 3. The cumulative amount of investment to be dedicated
14 to the facility within a specified period.
15 4. A statement of any special impacts the facility is
16 expected to stimulate in a particular business sector in the
17 state or regional economy or in the state's universities and
18 community colleges.
19 5. A statement of the role the incentive is expected
20 to play in the decision of the applicant business to locate or
21 expand in this state.
22 (b) Upon receipt of the evaluation and recommendation
23 from Enterprise Florida, Inc., the director shall recommend
24 approval or disapproval of a project for receipt of funds from
25 the Florida Economic Opportunities Incentive Fund to the
26 Governor. In recommending a high-impact business facility, the
27 director shall include proposed performance conditions that
28 the facility must meet to obtain incentive funds. The Governor
29 shall consult with the President of the Senate and the Speaker
30 of the House of Representatives before giving final approval
31 for a project.
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1 (c) Upon the approval of the Governor, the director of
2 the Office of Tourism, Trade, and Economic Development and the
3 high-impact business shall enter into a contract that sets
4 forth the conditions for payment of moneys from the fund. The
5 contract must include the total amount of funds awarded; the
6 performance conditions that must be met to obtain the award,
7 including, but not limited to, net new employment in the
8 state, average salary, and total capital investment; the
9 methodology for validating performance; the schedule of
10 payments from the fund; and sanctions for failure to meet
11 performance conditions.
12 (d) Enterprise Florida, Inc., shall validate
13 contractor performance. Such validation shall be reported
14 within 6 months after completion of the contract to the
15 Governor, the President of the Senate, and the Speaker of the
16 House of Representatives.
17 Section 9. Response to economic emergencies in small
18 communities.--
19 (1) The Legislature finds that attracting, retaining,
20 and providing favorable conditions for businesses which
21 contribute to the economic health of small communities through
22 the generation of business and employment opportunities is in
23 the public interest. The Legislature recognizes that
24 conditions may exist where criteria for existing economic
25 development programs prevent some businesses from
26 participating and that existing criteria should be waived in
27 order to allow businesses which are significant employers in
28 these small communities to participate in these programs in
29 order to improve the economic health of these communities.
30 The Legislature further recognizes that the loss of an
31 industry or the inability of a significant employer to open or
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1 reopen a business in a small community creates a state of
2 economic emergency within that community.
3 (2) A community is in a state of economic emergency
4 when any of the following conditions occur:
5 (a) Closure of a business which is a significant
6 employer of workers in the community.
7 (b) Closure of a business which significantly affects
8 the operations of other businesses which are significant
9 employers of workers in the community.
10 (c) A business which would be a significant employer
11 of workers in the community is unable to open or reopen due to
12 a lack of economic incentives or a business environment which
13 is not favorable to the opening or reopening of that business.
14 (d) The community experiences substantial unemployment
15 due to the closure of a major industry.
16 (3) A local government entity shall notify the
17 Governor, the Office of Tourism, Trade, and Economic
18 Development, and Enterprise Florida, Inc., when one or more of
19 the conditions specified in subsection (2) have occurred or
20 will occur if action is not taken to assist the local
21 governmental entity or the affected community.
22 (4) Upon notification that one or more of the
23 conditions described in subsection (2) exist, the Governor or
24 his or her designee shall contact the local governmental
25 entity to determine what actions have been taken by the local
26 governmental entity or the affected community to resolve the
27 economic emergency. The Governor has the authority to waive
28 the eligibility criteria of any program or activity
29 administered by the Office of Tourism, Trade, and Economic
30 Development, or Enterprise Florida, Inc., to provide economic
31 relief to the affected community by granting participation in
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1 such programs or activities. The Governor shall consult with
2 the President of the Senate and the Speaker of the House of
3 Representatives and shall take other action, as necessary, to
4 resolve the economic emergency in the most expedient manner
5 possible.
6 Section 10. Except as otherwise provided herein, this
7 act shall take effect October 1, 1999.
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1 *****************************************
2 HOUSE SUMMARY
3
Specifies the programs and funds that the Office of
4 Tourism, Trade, and Economic Development is authorized to
administer. Authorizes the office to expend interest
5 earned from certain trust fund investments for program
administration. Creates the Office of Urban Opportunity
6 within the Office of Tourism, Trade, and Economic
Development and provides its duties. Creates the Florida
7 Trade Council within the Executive Office of the Governor
and directs the council to develop a comprehensive
8 strategic plan and allocate resources to activities and
programs that incorporate plan strategies.
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10 Revises provisions relating to tax refunds paid from the
Economic Development Incentive Account and provides a
11 limitation.
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Updates language with respect to administration of the
13 qualified defense contractor tax refund program by the
Office of Tourism, Trade, and Economic Development.
14 Revises provisions relating to the limitation on such
refunds and extends the expiration date for certification
15 for such refunds to 2003.
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Revises provisions relating to the tax refund program for
17 qualified target industry businesses. Provides for
determination of number of employees for businesses
18 registered as a statewide reporting unit. Revises
requirements to qualify as an expansion of an existing
19 business or a rural county. Revises the counties to which
the local financial support exemption option applies.
20 Revises requirements for determining the amount of tax
refund payments. Revises the limitations on refunds for
21 projects located in an enterprise zone, rural county, or
rural city. Authorizes acceptance of a letter from an
22 authorized local economic development agency prior to
passage of the required resolution by the local
23 government. Authorizes reduction of certain employment
requirements for an expanding business in a rural city or
24 county or enterprise zone under certain conditions.
Revises requirements relating to application approval.
25 Authorizes certification of less than allowable refunds
under certain conditions. Revises requirements relating
26 to the tax refund agreement. Authorizes inclusion of the
value of county or municipal land conveyed to a business
27 in the required local financial support. Authorizes the
office to contract with Enterprise Florida, Inc., for
28 certain administrative duties.
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Creates the Institute on Urban Policy and Commerce at
30 Florida Agricultural and Mechanical University. Provides
for the establishment of regional urban centers. Requires
31 annual reports by the institute and the Governor.
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1 Provides legislative findings with respect to attracting
certain high-impact business facilities to the state.
2 Creates the Florida Economic Opportunities Incentive Fund
within the Office of Tourism, Trade, and Economic
3 Development. Directs Enterprise Florida, Inc., to make
recommendations for use of funds for such facilities.
4 Upon approval by the Governor, provides for a contract
between the office and an approved business with respect
5 to payment of such funds.
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Provides legislative findings with respect to the
7 economic health of small communities. Provides conditions
for determining when a state of economic emergency exists
8 in a community and provides for notification by a local
government entity to the Governor, the office, and
9 Enterprise Florida, Inc., when such conditions exist.
Authorizes the Governor to waive eligibility criteria for
10 certain programs or activities and take other action to
resolve the economic emergency.
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