House Bill 0297e1

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                                           HB 297, First Engrossed



  1                      A bill to be entitled

  2         An act relating to empowerment zones; creating

  3         s. 290.0501, F.S.; creating the "Florida

  4         Empowerment Zone Act"; providing definitions

  5         and intent; providing for program

  6         administration by the Department of Community

  7         Affairs; providing for annual funding;

  8         providing requirements for eligibility;

  9         providing an appropriation;  amending s.

10         212.097, F.S.; defining as a"qualified

11         high-crime area" areas receiving 1999 federal

12         empowerment zone designation; amending 212.098,

13         F.S.; defining as a "qualified county" a county

14         that contains an area receiving 1999 enterprise

15         community designation; amending s. 290.0065,

16         F.S.; designating areas receiving 1999 federal

17         empowerment zone or rural enterprise community

18         designations as state enterprise zones and

19         authorizing satellite enterprise zone;

20         providing an effective date.

21

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

23

24         Section 1.  Section 290.0501, Florida Statutes, is

25  created to read:

26         290.0501  Florida Empowerment Zone Program.--

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

28  "Florida Empowerment Zone Act."

29         (2)  DEFINITIONS.--For purposes of this section:

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

31  Affairs.


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                                           HB 297, First Engrossed



  1         (b)  "Federal Empowerment Zone Program" means the

  2  empowerment zone program passed by the United States Congress

  3  and codified at 26 U.S.C. s. 1391 et seq.

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

  5  participation in the Federal Empowerment Zone Program.

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

  7  applied for and received the empowerment zone designation, but

  8  does not include other entities that joined in the

  9  application.

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

11  that it is in the best interest of the citizens of this state

12  that the state create economic opportunity in poverty-stricken

13  areas and rebuild such areas by empowering the people and

14  communities within these areas to create jobs and

15  opportunities. The United States Congress, in 1997, provided

16  that an additional 20 areas may be designated as federal

17  empowerment zones by January 1, 1999, and, as such, be

18  eligible for federal funding under the Federal Empowerment

19  Zone Program. The Legislature seeks to promote Florida local

20  governments in submitting the strongest possible proposals

21  under the Federal Empowerment Zone Program, by establishing a

22  companion state empowerment zone program.

23         (4)  ADMINISTRATION.--There is hereby created an

24  economic development program to be known as the Florida

25  Empowerment Zone Program. The program shall operate for 10

26  years and, except as otherwise provided by law, shall be

27  administered by the Department of Community Affairs in

28  conjunction with the Federal Empowerment Zone Program.

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

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

31  Community Affairs from the General Revenue Fund each year


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                                           HB 297, First Engrossed



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

  2  the department to each sponsoring designee within the state

  3  which was announced in January 1999, the Federal Empowerment

  4  Zone designation under 26 U.S.C. s. 1391(g) or to each

  5  community that was awarded in January 1999 the Rural

  6  Enterprise Community designation, except that the Department

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

  8  appropriation for state administrative costs associated with

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

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

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

12  $250,000 must be distributed to a rural sponsoring designee or

13  Rural Enterprise Community. The funds must be used for the

14  benefit of the nominated area and are contingent upon the

15  sponsoring designee or Rural Enterprise Community receiving

16  Empowerment Zone or Enterprise Community funds under federal

17  law and meeting the local-match requirements imposed by the

18  Federal Empowerment or Enterprise Community regulations and

19  this section.

20         The Department shall evaluate the performance of the

21  Florida Empowerment Zone program recipients against the

22  milestones, outcomes and performance measures contained in the

23  application's strategic plan as submitted for designation as

24  an empowerment zone.

25         Section 2.  There is hereby appropriated from the

26  General Revenue Fund to the Department of Community Affairs

27  for fiscal year 1999-2000 the sum of $5 million to carry out

28  the purposes of s. 290.0501, Florida Statutes, as created by

29  this act.

30         Section 3.  Subsection (2)(e) of section 212.097,

31  Florida Statutes, 1998 Supplement, is amended to read:


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                                           HB 297, First Engrossed



  1         Section 212.097  Urban High-Crime Area Job Tax Credit

  2  Program.--

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

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

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

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

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

  8  to the following prioritized criteria:

  9         1.  Highest arrest rates within the geographic area for

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

11  possession, prostitution, vandalism, and civil disturbances;

12         2.  Highest reported crime volume and rate of specific

13  property crimes such as business and residential burglary,

14  motor vehicle theft, and vandalism;

15         3.  Highest percentage of reported index crimes that

16  are violent in nature;

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

18  and

19         5.  Highest overall index crime rate for the geographic

20  area.

21

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

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

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

25  areas are ranked 11 through 15. Notwithstanding this

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

27  that has been designated as a federal Empowerment Zone

28  pursuant to the Taxpayer Relief Act of 1997.  Such a

29  designated area shall be ranked in tier-three until the areas

30  are re-evaluated by Office of Tourism, Trade and Economic

31  Development.


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                                           HB 297, First Engrossed



  1         Section 4.  Subsection (2)(c) of section 212.098,

  2  Florida Statutes, 1998 Supplement, is amended to read:

  3         Section 212.098  Rural Job Tax Credit Program.--

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

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

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

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

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

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

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

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

12         1.  Highest unemployment rate for the most recent

13  36-month period.

14         2.  Lowest per capita income for the most recent

15  36-month period.

16         3.  Highest percentage of residents whose incomes are

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

18  available.

19         4.  Average weekly manufacturing wage, based upon the

20  most recent data available.

21

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

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

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

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

26  through 1715.  Notwithstanding this definition "qualified

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

28  been designated as a federal Enterprise Community pursuant to

29  the 1999 Agricultural Appropriations Act.  Such a designated

30  area shall be ranked in tier-three until the areas are

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                                           HB 297, First Engrossed



  1  re-evaluated by Office of Tourism, Trade and Economic

  2  Development.

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

  4  Statutes, 1998 Supplement, is amended, and subsection (12) of

  5  said section is created to read:

  6         Section 290.0065  State Designation of Enterprise

  7  Zones.--

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

  9  a federal empowerment zone or enterprise community pursuant to

10  Title XIII of the Omnibus Budget Reconciliation Act of

11  1993,the Taxpayer Relief Act of 1997 or the 1999 Agricultural

12  Appropriations Act shall be designated a state enterprise zone

13  as follows:

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

15  urban enterprise community pursuant to Title XIII of the

16  Omnibus Budget Reconciliation Act of 1993 or the Taxpayer

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

18  by the department upon completion of the requirements set out

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

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

21  incorporate and include such designated urban empowerment zone

22  or urban enterprise community areas within the boundaries of

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

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

25  rural enterprise community pursuant to Title XIII of the

26  Omnibus Budget Reconciliation Act of 1993 or the 1999

27  Agricultural Appropriations Act shall be designated a state

28  enterprise zone by the department upon completion of the

29  requirements set out in paragraph (d).

30         (c)  Any county or municipality having jurisdiction

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


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                                           HB 297, First Engrossed



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

  2  may not apply for designation of another area.

  3         (d)  Prior to designating such areas as state

  4  enterprise zones, the department shall ensure that the

  5  governing body having jurisdiction over the zone submits the

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

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

  8  zone development agency pursuant to s. 290.0056.

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

10  a state enterprise zone pursuant to this subsection in the

11  appropriate category established in subsection (3), and

12  include such designations within the limitations on state

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

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

15  in section 125.011(1) may create a satellite enterprise zone

16  not exceeding three square miles in area outside of and

17  notwithstanding anything contained in section 290.0055(4) or

18  elsewhere, in addition to the previously-designated 20 square

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

20  Economic Development shall amend the boundaries of the areas

21  previously designated by any such county as enterprise zones

22  upon the receipt of a resolution adopted by such governing

23  body describing the satellite enterprise zone so long as the

24  additional area is consistent with the categories, criteria,

25  and limitations imposed by section 290.0055, provided that the

26  20 square mile limitation and the requirements imposed by

27  section 290.0055(4)(d) shall not apply to such satellite

28  enterprise zone.

29         Section 6.  This act shall take effect July 1 of the

30  year in which enacted.

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