Senate Bill 0260e1

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    CS for SB 260                                  First Engrossed



  1                      A bill to be entitled

  2         An act relating to economic development;

  3         creating s. 163.055, F.S.; creating the Local

  4         Government Financial Technical Assistance

  5         Program; providing legislative findings and

  6         declaration; requiring the Comptroller to enter

  7         into certain contracts; providing for review of

  8         contract proposals; providing for fiscal

  9         oversight by the Comptroller; providing for an

10         annual performance review; providing for a

11         report; amending s. 163.01, F.S.; allowing

12         local government self-insurance reserves to be

13         used to guarantee local government obligations

14         under certain circumstances; creating s.

15         414.224, F.S.; creating the Retention Enhancing

16         Communities Initiative; providing for the

17         identification of communities; requiring

18         solicitation of proposals; providing for the

19         selection of RECI participants by the WAGES

20         Program State Board of Directors; providing for

21         the appointment of liaisons; authorizing the

22         Governor to address barriers to implementation

23         of RECI proposals; providing for the

24         redirection of certain funds; providing for

25         RECI elements; requiring the Governor to

26         designate a coordinator; establishing a center

27         for community excellence; providing

28         appropriations for RECI elements; providing

29         restrictions of funds; providing for monitoring

30         and reporting; amending s. 250.10, F.S.;

31         requiring the Adjutant General to administer a


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    CS for SB 260                                  First Engrossed



  1         life-preparation program and job-readiness

  2         services; creating s. 290.0069, F.S.; directing

  3         the Office of Tourism, Trade, and Economic

  4         Development to designate a pilot project area

  5         within an enterprise zone; providing

  6         qualifications for such area; providing that

  7         certain businesses in such area are eligible

  8         for credits against the tax on sales, use, and

  9         other transactions and corporate income tax;

10         providing for computation of such credits;

11         providing application procedures and

12         requirements; providing rulemaking authority;

13         requiring a review and report by the Office of

14         Program Policy Analysis and Government

15         Accountability; providing for future repeal and

16         revocation of such designation; providing an

17         extended period for certain businesses to claim

18         enterprise-zone tax incentives; authorizing

19         amendments to the boundaries of an enterprise

20         zone in a community with a brownfield pilot

21         project; providing for individual development

22         accounts in RECI communities; providing

23         purposes; providing definitions; requiring the

24         Department of Revenue to amend the Temporary

25         Assistance for Needy Families State Plan to

26         provide for use of funds for individual

27         development accounts; specifying criteria and

28         requirements for contributions to such

29         accounts; specifying purposes for use of such

30         accounts; providing for procedures for

31         withdrawals from such accounts; specifying


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    CS for SB 260                                  First Engrossed



  1         certain organizations to act as fiduciary

  2         organizations for certain purposes; providing

  3         for penalties for withdrawal of moneys for

  4         certain purposes; providing for resolution of

  5         certain disputes; providing for transfer of

  6         ownership of such accounts under certain

  7         circumstances; providing for establishment of

  8         such accounts by certain financial institutions

  9         under certain circumstances; providing

10         requirements; providing that account funds and

11         matching funds do not affect certain program

12         eligibility; authorizing municipalities to

13         designate satellite enterprise zones; amending

14         s. 218.503, F.S.; authorizing certain

15         municipalities to impose a discretionary

16         per-vehicle surcharge on the gross revenues of

17         the sale, lease, or rental of space at parking

18         facilities within the municipality that are

19         open for use to the public; providing for use

20         of surcharge proceeds; providing an effective

21         date.

22

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

24

25         Section 1.  Effective upon this act becoming a law,

26  section 163.055, Florida Statutes, is created to read:

27         163.055  Local Government Financial Technical

28  Assistance Program.--

29         (1)  Among municipalities and special districts, the

30  Legislature finds that:

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    CS for SB 260                                  First Engrossed



  1         (a)  Florida is a state comprised of 400 municipalities

  2  and almost 1,000 special districts statewide.

  3         (b)  Of the 400 municipalities in the state, over 200

  4  have a population under 5,000.

  5         (c)  State and federal mandates will continue to place

  6  additional funding demands on all municipalities and special

  7  districts.

  8         (d)  State government lacks the specific technical

  9  expertise or resources to effectively perform ongoing

10  educational support and financial emergency detection or

11  assistance.

12         (2)  Recognizing the findings in subsection (1), the

13  Legislature declares that:

14         (a)  The fiscal challenges confronting various

15  municipalities and special districts require an investment

16  that will facilitate efforts to improve the productivity and

17  efficiency of their financial structures and operating

18  procedures.

19         (b)  Current and additional revenue enhancements

20  authorized by the Legislature should be managed and

21  administered using appropriate management practices and

22  expertise.

23         (3)  The purpose of this section is to provide

24  technical assistance to municipalities and special districts

25  to enable them to implement workable solutions to financially

26  related problems.

27         (4)  The Comptroller shall enter into contracts with

28  program providers who shall:

29         (a)  Be a public agency or private, nonprofit

30  corporation, association, or entity.

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  1         (b)  Use existing resources, services, and information

  2  that are available from state or local agencies, universities,

  3  or the private sector.

  4         (c)  Seek and accept funding from any public or private

  5  source.

  6         (d)  Annually submit information to assist the

  7  Legislative Committee on Intergovernmental Relations in

  8  preparing a performance review that will include a analysis of

  9  the effectiveness of the program.

10         (e)  Assist municipalities and independent special

11  districts in developing alternative revenue sources.

12         (f)  Provide for an annual independent financial audit

13  of the program, if the program receives funding.

14         (g)  Provide assistance to municipalities and special

15  districts in the areas of financial management, accounting,

16  investing, budgeting, and debt issuance.

17         (h)  Develop a needs assessment to determine where

18  assistance should be targeted, and to establish a priority

19  system to deliver assistance to those jurisdictions most in

20  need through the most economical means available.

21         (i)  Provide financial emergency assistance upon

22  direction from the Office of the Governor pursuant to s.

23  218.503.

24         (5)(a)  The Comptroller shall issue a request for

25  proposals to provide assistance to municipalities and special

26  districts.  At the request of the Comptroller, the Legislative

27  Committee on Intergovernmental Relations shall assist in the

28  preparation of the request for proposals.

29         (b)  The Comptroller shall review each contract

30  proposal submitted.

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  1         (c)  The Legislative Committee on Intergovernmental

  2  Relations shall review each contract proposal and submit to

  3  the Comptroller, in writing, advisory comments and

  4  recommendations, citing with specificity the reasons for its

  5  recommendations.

  6         (d)  The Comptroller and the Legislative Committee on

  7  Intergovernmental Relations shall consider the following

  8  factors in reviewing contract proposals:

  9         1.  The demonstrated capacity of the provider to

10  conduct needs assessments and implement the program as

11  proposed.

12         2.  The number of municipalities and special districts

13  to be served under the proposal.

14         3.  The cost of the program as specified in a proposed

15  budget.

16         4.  The short-term and long-term benefits of the

17  assistance to municipalities and special districts.

18         5.  The form and extent to which existing resources,

19  services, and information that are available from state and

20  local agencies, universities, and the private sector will be

21  used by the provider under the contract.

22         (6)  A decision of the Comptroller to award a contract

23  under this section is final and shall be in writing with a

24  copy provided to the Legislative Committee on

25  Intergovernmental Relations.

26         (7)  The Comptroller may enter into contracts and

27  agreements with other state and local agencies and with any

28  person, association, corporation, or entity other than the

29  program providers, for the purpose of administering this

30  section.

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  1         (8)  The Comptroller shall provide fiscal oversight to

  2  ensure that funds expended for the program are used in

  3  accordance with the contracts entered into pursuant to

  4  subsection (4).

  5         (9)  The Legislative Committee on Intergovernmental

  6  Relations shall annually conduct a performance review of the

  7  program.  The findings of the review shall be presented in a

  8  report submitted to the Governor, the President of the Senate,

  9  the Speaker of the House of Representatives, and the

10  Comptroller by January 15 of each year.

11         Section 2.  Effective upon this act becoming a law,

12  paragraph (d) of subsection (7) of section 163.01, Florida

13  Statutes, is amended to read:

14         163.01  Florida Interlocal Cooperation Act of 1969.--

15         (7)(d)  Notwithstanding the provisions of paragraph

16  (c), any separate legal entity created pursuant to this

17  section and controlled by the municipalities or counties of

18  this state or by one or more municipality and one or more

19  county of this state, the membership of which consists or is

20  to consist of municipalities only, counties only, or one or

21  more municipality and one or more county, may, for the purpose

22  of financing or refinancing any capital projects, exercise all

23  powers in connection with the authorization, issuance, and

24  sale of bonds. Notwithstanding any limitations provided in

25  this section, all of the privileges, benefits, powers, and

26  terms of part I of chapter 125, part II of chapter 166, and

27  part I of chapter 159 shall be fully applicable to such

28  entity.  Bonds issued by such entity shall be deemed issued on

29  behalf of the counties or municipalities which enter into loan

30  agreements with such entity as provided in this paragraph.

31  Any loan agreement executed pursuant to a program of such


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  1  entity shall be governed by the provisions of part I of

  2  chapter 159 or, in the case of counties, part I of chapter

  3  125, or in the case of municipalities and charter counties,

  4  part II of chapter 166. Proceeds of bonds issued by such

  5  entity may be loaned to counties or municipalities of this

  6  state or a combination of municipalities and counties, whether

  7  or not such counties or municipalities are also members of the

  8  entity issuing the bonds.  The issuance of bonds by such

  9  entity to fund a loan program to make loans to municipalities

10  or counties or a combination of municipalities and counties

11  with one another for capital projects to be identified

12  subsequent to the issuance of the bonds to fund such loan

13  programs is deemed to be a paramount public purpose.  Any

14  entity so created may also issue bond anticipation notes, as

15  provided by s. 215.431, in connection with the authorization,

16  issuance, and sale of such bonds.  In addition, the governing

17  body of such legal entity may also authorize bonds to be

18  issued and sold from time to time and may delegate, to such

19  officer, official, or agent of such legal entity as the

20  governing body of such legal entity may select, the power to

21  determine the time; manner of sale, public or private;

22  maturities; rate or rates of interest, which may be fixed or

23  may vary at such time or times and in accordance with a

24  specified formula or method of determination; and other terms

25  and conditions as may be deemed appropriate by the officer,

26  official, or agent so designated by the governing body of such

27  legal entity.  However, the amounts and maturities of such

28  bonds and the interest rate or rates of such bonds shall be

29  within the limits prescribed by the governing body of such

30  legal entity and its resolution delegating to such officer,

31  official, or agent the power to authorize the issuance and


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    CS for SB 260                                  First Engrossed



  1  sale of such bonds.  A local government self-insurance fund

  2  established under this section may financially guarantee bonds

  3  or bond anticipation notes issued or loans made under this

  4  subsection.  Bonds issued pursuant to this paragraph may be

  5  validated as provided in chapter 75.  The complaint in any

  6  action to validate such bonds shall be filed only in the

  7  Circuit Court for Leon County.  The notice required to be

  8  published by s. 75.06 shall be published only in Leon County,

  9  and the complaint and order of the circuit court shall be

10  served only on the State Attorney of the Second Judicial

11  Circuit and on the state attorney of each circuit in each

12  county where the public agencies which were initially a party

13  to the agreement are located. Notice of such proceedings shall

14  be published in the manner and the time required by s. 75.06

15  in Leon County and in each county where the public agencies

16  which were initially a party to the agreement are located.

17  Obligations of any county or municipality pursuant to a loan

18  agreement as described in this paragraph may be validated as

19  provided in chapter 75.

20         Section 3.  Effective upon this act becoming a law,

21  section 414.224, Florida Statutes, is created to read:

22         414.224  Retention Enhancing Communities Initiative.--

23         (1)  LEGISLATIVE INTENT.--The Legislature finds that

24  Florida has numerous distressed urban cores with high

25  proportions of residents who are former and current WAGES

26  Program participants. The Legislature further finds that the

27  existence of strong neighborhoods and communities is crucial

28  to reduce recidivism among former WAGES Program participants,

29  and to create new jobs and promote job retention for current

30  WAGES Program participants. Therefore, it is the intent of the

31  Legislature to create a program designed to develop these


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  1  communities with the help of, and for the benefit of, current

  2  and former WAGES Program participants.

  3         (2)  CREATION.-- The Retention Enhancing Communities

  4  Initiative (RECI) is created to leverage federal, state, and

  5  local resources for community redevelopment initiatives that

  6  promote job retention among WAGES Program participants.

  7  Selected communities will identify and compete for projects

  8  coordinated around the six community-enhancing elements of

  9  community safety, community builders, community businesses,

10  community schools, community partnerships, and community

11  redevelopment.

12         (3) SELECTION OF RECI COMMUNITIES.--

13         (a) By July 1, 1999, the WAGES Program State Board of

14  Directors, in consultation with local WAGES coalitions, will

15  identify 14 communities in the state's seven largest counties.

16  These communities must be compact, congruent, and contiguous

17  census tracts that have the highest concentrations of

18  residents who are current or former WAGES Program

19  participants. To the maximum extent possible, these

20  communities should coincide with federal empowerment zones,

21  enterprise zones established under chapter 290, Neighborhood

22  Improvement Districts established under chapter 163, community

23  redevelopment areas established under chapter 163, and Urban

24  High Crime Areas established under chapter 212. By August 1,

25  1999, the WAGES Program State Board of Directors must contract

26  with an independent entity to certify that these 14

27  communities comply with the requirements of this section.

28         (b)  By July 10, 1999, the WAGES Program State Board of

29  Directors shall solicit proposals from the communities

30  identified in paragraph (a) for participation in RECI. The

31  Governor shall appoint a liaison from a state agency to assist


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  1  with each proposal and their implementation. These liaisons

  2  shall have the full assistance of the Executive Office of the

  3  Governor, the agencies of state government, and their

  4  employees. If a state employee is not able to assist a liaison

  5  because of state law or regulation, the liaison shall notify

  6  the Governor, the Office of Urban Opportunity, and the Office

  7  of Program Policy Analysis and Government Accountability

  8  concerning the impasse and prepare proposals to resolve them.

  9  Upon a written request of a liaison, the Governor may by

10  executive order or emergency rule address regulatory or

11  procedural impasses to enable prompt implementation of a

12  community's proposal. Any federal TANF funding appropriated by

13  the state to benefit WAGES participants, to assist needy

14  families, or to promote job placement and employment retention

15  of WAGES participants that is in excess of revenues necessary

16  to fulfill the appropriated purpose may, upon a written

17  request of a liaison, be redirected, notwithstanding any other

18  statute, with the approval of the Office of Urban Opportunity,

19  the WAGES Program State Board of Directors, and the Governor,

20  to support an approved project in a RECI community. Proposals

21  should be general in nature, be no more than 20 pages long,

22  and include:

23         1. A brief plan describing how the community will

24  coordinate and incorporate the six RECI elements into the

25  community's redevelopment strategy;

26         2. Specific evidence of community support from

27  community-based organizations and local government for

28  participation in RECI;

29         3. For each RECI element, identification and commitment

30  of local resources from community-based organizations, local

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  1  government, and others, to be leveraged by federal and state

  2  resources;

  3         4.  Identification of the specific entity or person

  4  responsible for coordinating the community's participation in

  5  RECI; and

  6         5.  Identification of local administrative entities.

  7         (c) Based on proposal evaluation criteria developed by

  8  the WAGES Program State Board of Directors, the board shall,

  9  by October 1, 1999, select up to nine communities to

10  participate in RECI, and notify each community of such

11  selection. All RECI projects must be fully operational by

12  January 1, 2000, and must be completed by December 31, 2001.

13         (4) RECI ELEMENTS.--Once a community is selected as a

14  RECI participant, the community may compete for awards in each

15  RECI element. Awards will be granted by the WAGES Program

16  State Board of Directors and will be based on a project plan

17  that must be consistent with the community's proposal

18  describing the coordination and incorporation of the RECI

19  elements. The WAGES Program State Board of Directors shall

20  develop guidelines and criteria for the application and award

21  of the funds. Criteria must provide additional weight for

22  criteria relating to community involvement, business

23  involvement, and local contributions. Unless otherwise

24  provided for, the board or its designated agents shall

25  administer the award of funds for each RECI element and must

26  provide assurances that projects are completed pursuant to

27  project plans. RECI elements include the following:

28         (a) WAGES Community Safety.--Funds may be awarded for

29  projects that increase the safety and reduce crime in RECI

30  communities. Funds may be used to train and employ WAGES

31  Program participants in public safety jobs; establish security


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  1  businesses and services; train residents in safety practices

  2  and organize safety networks; improve lighting, alarms, and

  3  law enforcement equipment; improve the safety of homes,

  4  buildings, and streets; and provide community police. Local

  5  law enforcement agencies must be a contributing partner in

  6  safety projects. The Department of Community Affairs and the

  7  Florida Department of Law Enforcement shall assign a

  8  representative of their departments to assist these

  9  communities with public safety issues and, notwithstanding any

10  other provision in law, may award public safety grants to

11  these communities.

12         (b) WAGES Community Builders.--Funds may be awarded for

13  small community clean-up and enhancement projects that quickly

14  create visible improvements and for planning and

15  implementation of larger neighborhood revitalization and

16  economic development initiatives.

17         1. Funds for the WAGES Community Builders element may

18  be awarded for small community clean-up and enhancement

19  projects. Projects must include WAGES Program participants,

20  must last less than 3 weeks, and must be endorsed by the local

21  unit of government. Funding may not exceed $5,000 per project

22  without a waiver from the WAGES Program State Board of

23  Directors. The board shall enlist the Department of State's

24  Main Street program, Keep Florida Beautiful, Inc., and, when

25  approved by the Governor, the Florida National Guard, to

26  advise and assist with these projects and to redirect

27  resources to these communities.

28         2. Funds for the WAGES Community Builders element may

29  be awarded for the planning and implementation of large

30  neighborhood revitalization or economic development

31  initiatives. Funding for planning projects may not exceed


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  1  $200,000, and may not, in total, exceed 20 percent of the

  2  funds available for this element. Funding for implementation

  3  projects may not in total exceed 20 percent of the funds

  4  available for this element and must primarily leverage

  5  federal, state, local, private, or foundation resources other

  6  than those provided for in this section. Planning and

  7  implementation projects shall employ WAGES Program

  8  participants from the RECI community to the greatest extent

  9  possible.

10         (c) WAGES Community Businesses.--Funds may be awarded

11  for small business-development projects, including

12  national-franchise attraction efforts, microloans, guaranteed

13  commercial loans, technical assistance, self-employment, and

14  business incubators at educational institutions. At least 95

15  percent of funds awarded for these projects must be for the

16  benefit of WAGES Program participants in RECI communities. The

17  WAGES Program State Board of Directors shall work with the

18  Comptroller to target the linked-deposit program under s.

19  290.0075 into these communities, and the Comptroller shall, to

20  the greatest extent he or she deems practical, implement that

21  program in RECI communities. Using funds appropriated for this

22  element, the WAGES Program State Board of Directors, or its

23  designated agent, shall establish a $10-million loan-loss

24  reserve to encourage and guarantee commercial loans made under

25  this element, and shall develop a tax-free bond fund to

26  provide and expand the secondary loan market for commercial

27  loans made in RECI communities. The WAGES Program State Board

28  of Directors, or its designated agent, shall approach and

29  propose joint ventures with national franchisers committing to

30  train individuals for and partially underwrite new franchise

31  ventures in RECI communities.


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  1         (d) WAGES Community Schools.--Funds may be awarded for

  2  WAGES Community School projects that upgrade schools through

  3  construction, repair, or renovation, or which provide training

  4  and employment to WAGES Program participants to assist with

  5  transportation, school services, and security. Schools

  6  accepting this assistance must offer before, after, and summer

  7  school programs for students who are WAGES Program

  8  participants.

  9         (e) WAGES Community Partnerships.--Funds may be awarded

10  for WAGES Community Partnership projects to make payments of

11  tax credits to businesses that contribute to projects in RECI

12  communities which are eligible under the community

13  contribution tax credit program under ss. 220.183 and

14  624.5105. Business contributions must benefit WAGES Program

15  participants in these communities. Funds may equal 30 percent

16  of the business's contribution and may apply to contributions

17  of any size if adequate funds are available in this RECI

18  element. The Office of Tourism, Trade, and Economic

19  Development and the Department of Revenue shall assist the

20  WAGES Program State Board of Directors in administering such

21  tax credits. Projects may also match, up to a

22  dollar-for-dollar level, any foundation awards to RECI

23  communities which will improve job retention and reduce public

24  assistance dependency as determined by the WAGES Program State

25  Board of Directors.

26         (f) WAGES Community Redevelopment.--Funds may be

27  awarded for WAGES Community Redevelopment projects to

28  facilitate the planning, preparing, marketing, and financing

29  of residential, mixed-use, and commercial development

30  projects, as well as residential and business infrastructure

31  redevelopment projects in RECI communities. Projects that


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  1  would mainly result in gentrification of the community, that

  2  would not employ a preponderance of WAGES Program

  3  participants, and that predominately create residences or

  4  business sites that are beyond the anticipated income level of

  5  working WAGES Program participants are not eligible.

  6         1. The Office of Tourism, Trade, and Economic

  7  Development shall be the administrator of projects under this

  8  paragraph and shall develop criteria for the award of the

  9  funds. Funds available under this element must be leveraged

10  with federal, state, and local resources, including, but not

11  limited to, those available through the local unit of

12  government under the Community Development Block Grant,

13  section 108 loan guarantee program, and through state agencies

14  including the Department of Community Affairs, the Department

15  of Environmental Protection, and the Florida Housing Finance

16  Corporation.

17         2. A redevelopment finance review team including the

18  WAGES Program State Board of Directors, the Office of Tourism,

19  Trade, and Economic Development, Enterprise Florida, Inc., the

20  appropriate local WAGES coalition, the appropriate local unit

21  of government, the Department of Community Affairs, the

22  Department of Environmental Protection, and the Florida

23  Housing Finance Corporation shall review all project plans and

24  coordinate available resources, matching expenditures to

25  eligible and available revenues that may be invested in the

26  project. The team shall seek federal funding assistance in

27  these projects and may identify and recommend projects for

28  award under the WAGES Targeted Employment and WAGES

29  transportation projects established by law. The team shall

30  recommend appropriate projects to the State Board of

31  Administration for public investment. Their collaborative


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  1  project package shall constitute a recommended public

  2  financing commitment that shall serve to induce private

  3  developers to finance the remaining costs of the project.

  4  Notwithstanding the provisions of s. 216.301, funds

  5  appropriated for the purpose of this paragraph shall not be

  6  subject to reversion.

  7         3. The Office of Tourism, Trade, and Economic

  8  Development, based upon the recommendation from the team, may

  9  award project funds to RECI communities for up to 30 percent

10  of the total project cost. In awarding funds, the office shall

11  consider factors including, but not limited to, the project's

12  direct employment of WAGES Program participants in planning,

13  development, or construction; eventual direct employment of

14  WAGES Program participants; residences or businesses to be

15  owned by WAGES Program participants; impact on retention in

16  employment of WAGES Program participants; impact on lowering

17  recidivism and dependency on public assistance programs;

18  demonstrated local public and private commitment; and the

19  potential to enhance and upgrade the community.

20         4. To facilitate timely response and induce the

21  development of site opportunities where a community-based or

22  private-sector partner exists, the Office of Tourism, Trade,

23  and Economic Development may award funds for infrastructure

24  feasibility studies, design and engineering activities,

25  project development and packaging, or other infrastructure

26  planning and preparation activities. Such funds may not exceed

27  $300,000 per project, and may not exceed 5 percent of the

28  total funding available under this paragraph.

29         5. The Office of Tourism, Trade, and Economic

30  Development shall pursue execution of a memorandum of

31  agreement with the Department of Housing and Urban Development


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  1  and other federal or state partners under which state funds

  2  available through this element may be advanced, in excess of

  3  the prescribed state share, for a project that has received

  4  from the department or partner a preliminary determination of

  5  eligibility for financial support. State funds in excess of

  6  the prescribed state share which are advanced pursuant to this

  7  paragraph and a memorandum of agreement shall be reimbursed

  8  when funds are awarded under an application for other

  9  financing.

10         6. To facilitate development of prospective sites, the

11  Office of Tourism, Trade, and Economic Development may award

12  funds for surveys, feasibility studies, project development,

13  packaging, marketing, and other activities related to the

14  identification, marketing, and preparation of sites of up to

15  $150,000. Such funds shall require a match from local sources

16  of 33 percent and the total grants awarded under this

17  subparagraph shall not exceed 5 percent of the total funding

18  available under this paragraph.

19         (5) The Governor shall name by July 15, 1999, a

20  coordinator in the Office of Urban Opportunity with the

21  authority, established by executive order, to work with the

22  WAGES Program State Board of Directors to direct agency

23  assistance, solve problems, and commit resources to RECI

24  communities.

25         (6) By August 15, 1999, working with the Workforce

26  Development Board, the WAGES Program State Board of Directors

27  shall establish a center for community excellence, affiliated

28  with an educational institution or group of educational

29  institutions, which will provide research, consulting,

30  technical assistance, capacity building, training, and program

31  assistance services to RECI communities.


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    CS for SB 260                                  First Engrossed



  1         (7) FUNDING.--

  2         (a)  To implement the provisions of this act, the

  3  Department of Children and Family Services is authorized to

  4  spend up to $50 million from Temporary Assistance for Needy

  5  Families (TANF) Block Grant funds pursuant to criteria adopted

  6  by the WAGES Program State Board of Directors.

  7         (b) Any expenditure from the Temporary Assistance for

  8  Needy Families block grant shall be expended in accordance

  9  with the requirements and limitations of Title IV of the

10  Social Security Act, as amended, or any other applicable

11  federal requirement or limitation in law. Prior to any

12  expenditure of such funds, the WAGES Program State Board of

13  Directors and the Secretary of Children and Family Services,

14  or his or her designee, shall certify that controls are in

15  place to ensure that such funds are expended and reported in

16  accordance with the requirements and limitations of federal

17  law. It shall be the responsibility of any entity to which

18  funds are awarded to obtain the required certification prior

19  to any expenditure of funds.

20         (c) Unexpended proceeds derived from a project

21  completed with the use of program funds, beyond the operating

22  costs and debt service, shall be restricted to further

23  expenditures within the element. Use of such unexpended

24  proceeds for purposes other than those authorized by this act

25  is prohibited.

26         (d) No more than 5 percent of the funds available under

27  this section may be used by the board or its designated agents

28  to administer and monitor the awards.

29         (e) Funds authorized under this section must augment

30  the existing efforts or resources of local communities rather

31  than offset or supplant them.


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    CS for SB 260                                  First Engrossed



  1         (8) The Governor shall notify the President of the

  2  United States and the Florida Congressional Delegation of any

  3  delays by the federal government affecting the prompt

  4  implementation of this section, and enlist their assistance in

  5  resolution of such delays. By budget amendment, the Governor

  6  shall identify and transfer funds to continue this initiative

  7  on schedule, notwithstanding federal delays. With the

  8  assistance of the Secretary of Children and Family Services

  9  and the Attorney General, the Governor shall then explore

10  administrative and judicial options to gain reimbursement.

11         (9) MONITORING AND REPORTING.--

12         (a) The independent entity selected by the WAGES

13  Program State Board of Directors to certify compliance by the

14  14 communities identified under paragraph (2)(a) shall also

15  identify four other similar communities to serve as a control

16  group for RECI. The entity must measure performance trends in

17  the control group communities, the communities that applied

18  for RECI designation but were not selected, and the

19  communities selected to participate in RECI. The four control

20  communities shall be known only to the entity until the

21  completion of the initiative. The entity shall develop,

22  working with the Office of Program Policy Analysis and

23  Government Accountability and the WAGES Program State Board of

24  Directors, criteria by October 1, 1999, to measure the impact

25  of the initiative. Such criteria must include the total

26  revenues generated and invested in RECI communities, and the

27  amount of revenue saved from the retention of WAGES Program

28  participants.

29         (b) In addition to a comprehensive final report due

30  February 15, 2002, the WAGES Program State Board of Directors

31  must report to the Governor and Legislature every 6 months


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    CS for SB 260                                  First Engrossed



  1  beginning January 1, 2000, on the progress of RECI. Reports

  2  must include tangible impacts of the initiative. The final

  3  report shall include recommendations relating to the potential

  4  development of a RECI program for communities in mid-sized

  5  counties. The report must additionally recognize the three

  6  most successful RECI communities and designate these

  7  communities Florida's "come-back communities."

  8         Section 4.  Paragraph (m) is added to subsection (2) of

  9  section 250.10, Florida Statutes, 1998 Supplement, to read:

10         250.10  Appointment and duties of the Adjutant

11  General.--

12         (2)  The Adjutant General of the state shall be the

13  Chief of the Department of Military Affairs. He or she shall:

14         (m)  Subject to annual appropriations, administer youth

15  About Face programs and adult Forward March programs at sites

16  to be selected by the Adjutant General.

17         1.  About Face shall establish a summer and a

18  year-round afterschool life-preparation program for

19  economically disadvantaged and at-risk youths from 13 through

20  17 years of age. Both programs must provide schoolwork

21  assistance, focusing on the skills needed to pass the high

22  school competency test, and also focus on functional life

23  skills, including teaching students to work effectively in

24  groups; providing basic instruction in computer skills;

25  teaching basic problem solving, decision making, and reasoning

26  skills; teaching how the business world and free enterprise

27  work through computer simulations; and teaching home finance

28  and budgeting and other daily living skills. In the

29  afterschool program, students must train in academic study

30  skills and the basic skills that businesses require for

31  employment consideration.


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    CS for SB 260                                  First Engrossed



  1         2.  The Adjutant General shall provide job-readiness

  2  services in the Forward March program for WAGES program

  3  participants who are directed to Forward March by local WAGES

  4  coalitions. The Forward March program shall provide training

  5  on topics that directly relate to the skills required for

  6  real-world success. The program shall emphasize functional

  7  life skills, computer literacy, interpersonal relationships,

  8  critical-thinking skills, business skills, preemployment and

  9  work maturity skills, job-search skills, exploring careers

10  activities, how to be a successful and effective employee, and

11  some job-specific skills. The program also shall provide

12  extensive opportunities for participants to practice generic

13  job skills in a supervised work setting. Upon completion of

14  the program, Forward March shall return participants to the

15  local WAGES coalition for placement in a job-placement pool.

16         Section 5.  Notwithstanding the time limitations

17  contained in chapters 212 and 220, Florida Statutes, relating

18  to enterprise-zone tax incentives, a business that was

19  purchased in February 1992 within an area of Tampa that

20  received a designation as an enterprise zone under section

21  290.0065, Florida Statutes, effective July 1, 1995, and that

22  was eligible to receive enterprise-zone tax incentives from

23  July 1, 1995, to July 1, 1998, must submit an application for

24  the tax incentives by December 1, 1999. All other requirements

25  of the enterprise zone program apply to such a business.

26         Section 6.  Notwithstanding any provision of law to the

27  contrary, the governing body of a municipality or a county

28  containing a U.S. Environmental Protection Agency brownfield

29  pilot project that was designated as of May 1, 1997, may apply

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

31  before December 31, 1999, to amend the boundaries of an


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    CS for SB 260                                  First Engrossed



  1  enterprise zone designated in a municipality or a county

  2  containing such brownfield pilot project. The office shall

  3  approve the application to amend the boundaries of the

  4  enterprise zone if the added area does not increase the

  5  overall size of the expanded zone more than its original size

  6  or 20 square miles, whichever is larger.

  7         Section 7.  Before December 31, 1999, any municipality

  8  an area of which has previously received designation as an

  9  Enterprise Zone in the population category described in

10  section 290.0065(3)(a)3., Florida Statutes, may create a

11  satellite enterprise zone not exceeding 1.5 square miles in

12  area outside of and, notwithstanding anything contained in

13  section 290.0055(4), Florida Statutes, or any other law, in

14  addition to the previously designated enterprise zone

15  boundaries. The Office of Tourism, Trade, and Economic

16  Development shall amend the boundaries of the areas previously

17  designated by any such municipality as enterprise zones upon

18  receipt of a resolution adopted by the municipality describing

19  the satellite enterprise zone areas, as long as the additional

20  areas are consistent with the categories, criteria, and

21  limitations imposed by section 290.0055, Florida Statutes.

22  However, the requirements imposed by section 290.0055(4)(d),

23  Florida Statutes, do not apply to such satellite enterprise

24  zone areas.

25         Section 8.  (1)  The purpose of this section is to

26  provide for the establishment of individual development

27  accounts (IDAs) in communities targeted by the Retention

28  Enhancing Communities Initiative (RECI) designed to provide

29  families with limited means in these communities an

30  opportunity to accumulate assets, to facilitate and mobilize

31  savings, to promote education, homeownership, and


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    CS for SB 260                                  First Engrossed



  1  microenterprise development, and to stabilize families and

  2  build communities.  This section implements the provisions of

  3  s. 404(h) of the Social Security Act, as amended, 42 U.S.C. s.

  4  604(h), related to individual development accounts.  Nothing

  5  in this section is intended to conflict with the provisions of

  6  federal law.

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

  8         (a)  "Individual development account" means an account

  9  exclusively for the purpose of paying the qualified expenses

10  of an eligible individual or family in RECI communities.  The

11  account is a trust created or organized in this state and

12  funded through periodic contributions by the establishing

13  individual and matched by or through a qualified entity for a

14  qualified purpose.

15         (b)  "Qualified entity" means:

16         1.  A not-for-profit organization described in s.

17  501(c)(3) of the Internal Revenue Code of 1986, as amended,

18  and exempt from taxation under s. 501(a) of such code; or

19         2.  A state or local government agency acting in

20  cooperation with an organization described in subparagraph 1.

21  For purposes of this section, a local WAGES coalition shall be

22  considered a government agency.

23         (c)  "Financial institution" means an organization

24  authorized to do business under state or federal laws relating

25  to financial institutions, and includes a bank, trust company,

26  savings bank, building and loan association, savings and loan

27  company or association, and credit union.

28         (d)  "Eligible educational institution" means:

29         1.  An institution described in s. 481(a)(1) or s.

30  1201(a) of the Higher Education Act of 1965, 20 U.S.C. s.

31  1088(a)(1) or s. 1141(a), as such sections are in effect on


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    CS for SB 260                                  First Engrossed



  1  the date of the enactment of the Personal Responsibility and

  2  Work Opportunity Reconciliation Act of 1996, Pub. L. No.

  3  104-193.

  4         2.  An area vocational education school, as defined in

  5  s. 521(4)(C) or (D) of the Carl D. Perkins Vocational and

  6  Applied Technology Education Act, 20 U.S.C. s. 2471(4), in

  7  this state, as such sections are in effect on the date of the

  8  enactment of the Personal Responsibility and Work Opportunity

  9  Reconciliation Act of 1996, Pub. L. No. 104-193.

10         (e)  "Postsecondary educational expenses" means:

11         1.  Tuition and fees required for the enrollment or

12  attendance of a student at an eligible educational

13  institution.

14         2.  Fees, books, supplies, and equipment required for

15  courses of instruction at an eligible educational institution.

16         (f)  "Qualified acquisition costs" means the costs of

17  acquiring, constructing, or reconstructing a residence. The

18  term includes any usual or reasonable settlement, financing,

19  or other closing costs in a RECI community.

20         (g)  "Qualified business" means any business that does

21  not contravene any law or public policy in a RECI community.

22         (h)  "Qualified business capitalization expenses" means

23  qualified expenditures for the capitalization of a qualified

24  business pursuant to a qualified plan.

25         (i)  "Qualified expenditures" means expenditures

26  included in a qualified plan, including capital, plant,

27  equipment, working capital, and inventory expenses.

28         (j)1.  "Qualified first-time homebuyer" means a

29  taxpayer and, if married, the taxpayer's spouse, who has no

30  present ownership interest in a principal residence during the

31


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    CS for SB 260                                  First Engrossed



  1  3-year period ending on the date of acquisition of the

  2  principal residence.

  3         2.  "Date of acquisition" means the date on which a

  4  binding contract to acquire, construct, or reconstruct the

  5  principal residence is entered into.

  6         (k)  "Qualified plan" means a business plan or a plan

  7  to use a business asset purchased, which:

  8         1.  Is approved by a financial institution, a

  9  microenterprise development organization, or a nonprofit loan

10  fund having demonstrated fiduciary integrity.

11         2.  Includes a description of services or goods to be

12  sold, a marketing plan, and projected financial statements.

13         3.  May require the eligible individual to obtain the

14  assistance of an experienced entrepreneurial advisor.

15         (l)  "Qualified principal residence" means a principal

16  residence, in a RECI community within the meaning of s. 1034

17  of the Internal Revenue Code of 1986, as amended, the

18  qualified acquisition costs of which do not exceed 100 percent

19  of the average area purchase price applicable to such

20  residence, determined in accordance with s. 143(e)(2) and (3)

21  of such code.

22         (3)  The Department of Children and Families shall

23  amend the Temporary Assistance for Needy Families State Plan

24  which was submitted in accordance with s. 402 of the Social

25  Security Act, as amended, 42 U.S.C. s. 602, to provide for the

26  use of funds for individual development accounts in accordance

27  with the provisions of this section.

28         (4)(a)  Any family in a RECI community subject to time

29  limits and fully complying with work requirements of the WAGES

30  Program that enters into an agreement with an approved

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    CS for SB 260                                  First Engrossed



  1  fiduciary organization is eligible for participation in an

  2  individual development account.

  3         (b)  Contributions to the individual development

  4  account by an individual may be derived only from earned

  5  income, as defined in s. 911(d)(2) of the Internal Revenue

  6  Code of 1986, as amended.

  7         (c)  The individual or family shall enter into an

  8  individual development account agreement with a certified

  9  fiduciary organization or community-based organization.

10         (d)  Eligible participants may receive matching funds

11  for contributions to the individual development account,

12  pursuant to the WAGES State Plan and the plan of the local

13  WAGES coalition. When not restricted to the contrary, matching

14  funds may be paid from state and federal funds under the

15  control of the local WAGES coalition, from local agencies, or

16  from private donations.

17         (e)  Eligible participants may receive bonus payments

18  for program compliance, to the extent provided in the WAGES

19  State Plan and the plan of the local WAGES coalition.  Such

20  bonus payments may provide for a matching proportion higher

21  than matching funds described in paragraph (d).

22         (5)  Individual development accounts may be available

23  once the family no longer receives cash assistance for any of

24  the following uses:

25         (a)  Postsecondary educational expenses paid from an

26  individual development account directly to an eligible

27  educational institution;

28         (b)  Qualified acquisition costs with respect to a

29  qualified principal residence in a RECI community for a

30  qualified first-time homebuyer, if paid from an individual

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    CS for SB 260                                  First Engrossed



  1  development account directly to the persons to whom the

  2  amounts are due; or

  3         (c)  Amounts paid from an individual development

  4  account directly to a business capitalization account which is

  5  established in a federally insured financial institution and

  6  is restricted to use solely for qualified business

  7  capitalization in a RECI community.

  8         (6)  The WAGES Program State Board of Directors shall

  9  establish such policies and procedures as may be necessary to

10  ensure that funds held in an individual development account

11  are not withdrawn except for one or more of the qualified

12  purposes described in this section.

13         (7)  Fiduciary organizations shall be the local WAGES

14  coalition or other organizations designated by the local WAGES

15  coalition to serve as an intermediary between individual

16  account holders and financial institutions holding accounts.

17  Responsibilities of such fiduciary organizations may include

18  marketing participation, soliciting matching contributions,

19  counseling program participants, and conducting verification

20  and compliance activities.

21         (8)  The WAGES Program State Board of Directors shall

22  establish penalties and procedures for enforcing compliance

23  with such penalties for the withdrawal of moneys from

24  individual development accounts under false pretenses or for

25  the use of such moneys for other than approved purposes.  The

26  fiduciary organization shall make arrangements with the

27  financial institution to impose any penalties or loss of

28  matching funds as specified by the WAGES Program State Board

29  of Directors on moneys withdrawn.  The WAGES Program State

30  Board of Directors may, at its discretion, specify conditions

31  under which an account shall be closed.


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    CS for SB 260                                  First Engrossed



  1         (9)  The fiduciary organization shall establish a

  2  grievance committee and a procedure to hear, review, and

  3  decide in writing any grievance made by a holder of an

  4  individual development account who disputes a decision of the

  5  operating organization that a withdrawal is subject to

  6  penalty.

  7         (10)  In the event of an account holder's death, the

  8  account may be transferred to the ownership of a contingent

  9  beneficiary. An account holder shall name contingent

10  beneficiaries at the time the account is established and may

11  change such beneficiaries at any time.

12         (11)  Financial institutions approved by the WAGES

13  Program State Board of Directors shall be permitted to

14  establish individual development accounts pursuant to this

15  section. The financial institution shall certify to the local

16  WAGES coalition on forms prescribed by the WAGES Program State

17  Board of Directors and accompanied by any documentation

18  required by the WAGES Program State Board of Directors that

19  such accounts have been established pursuant to all provisions

20  of this act and that deposits have been made on behalf of the

21  account holder. A financial institution establishing an

22  individual development account shall:

23         (a)  Keep the account in the name of the account

24  holder.

25         (b)  Subject to the indicated conditions, permit

26  deposits to be made into the account:

27         1.  By the account holder; or

28         2.  By means of contributions made on behalf of the

29  account holder. Such deposits may include moneys to match the

30  account holder's deposits.

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    CS for SB 260                                  First Engrossed



  1         (c)  Require the account to earn the market rate of

  2  interest.

  3         (d)  Permit the account holder to withdraw moneys from

  4  the account for any of the permissible uses pursuant to

  5  procedures adopted by the WAGES Program State Board of

  6  Directors.

  7         (12)  In accordance with s. 404(h)(4) of the Social

  8  Security Act, as amended, 42 U.S.C. s. 604(h)(4), and

  9  notwithstanding any other provision of law, other than the

10  Internal Revenue Code of 1986, as amended, funds in an

11  individual development account, including interest accruing in

12  such account, shall be disregarded in determining eligibility

13  for any federal or state program. Matching contributions paid

14  directly into such account and contributions by an individual

15  from earnings shall similarly be disregarded in determining

16  eligibility for any state or federal program.

17         Section 9.  Subsection (5) is added to section 218.503,

18  Florida Statutes, to read:

19         218.503  Determination of financial emergency.--

20         (5)(a)  The governing authority of any municipality

21  with a resident population of 300,000 or more on April 1,

22  1999, and which has been declared in a state of financial

23  emergency pursuant to this section within the previous 2

24  fiscal years may impose a discretionary per-vehicle surcharge

25  of up to 20 percent on the gross revenues of the sale, lease,

26  or rental of space at parking facilities within the

27  municipality that are open for use to the general public.

28         (b)  A municipal governing authority that imposes the

29  surcharge authorized by this subsection may use the proceeds

30  of such surcharge for the following purposes only:

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    CS for SB 260                                  First Engrossed



  1         1.  No more than 80 percent of the surcharge proceeds

  2  shall be used by the governing authority to reduce its ad

  3  valorem tax millage rate or to reduce or eliminate non-ad

  4  valorem assessments.

  5         2.  A portion of the balance of the surcharge proceeds

  6  shall be used by the governing authority to increase its

  7  budget reserves; however, the governing authority shall not

  8  reduce the amount it allocates for budget reserves from other

  9  sources below the amount allocated for reserves in the fiscal

10  year prior to the year in which the surcharge is initially

11  imposed. When a 15 percent budget reserve is achieved, based

12  on the average gross revenue for the most recent 3 prior

13  fiscal years, the remaining proceeds from this subparagraph

14  shall be used for the payment of annual debt service related

15  to outstanding obligations backed or secured by a covenant to

16  budget and appropriate from non-ad valorem revenues.

17         (c)  This subsection is repealed on June 30, 2006.

18         Section 10.  Except as otherwise provided in this act,

19  this act shall take effect July 1, 1999.

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