House Bill 0647c1

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    Florida House of Representatives - 1999              CS/HB 647

        By the Committee on Community Affairs and Representative
    K. Smith





  1                      A bill to be entitled

  2         An act relating to economic development in

  3         rural areas; providing a short title; providing

  4         intent; amending s. 163.3177, F.S.; providing

  5         requirements for the future land use element of

  6         a local government comprehensive plan with

  7         respect to rural areas; amending s. 212.098,

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

  9         and Economic Development to recommend to the

10         Legislature additions to or deletions from the

11         list of standard industrial classifications

12         used to determine an eligible business for

13         purposes of the Rural Job Tax Credit Program;

14         providing an appropriation to the Rural

15         Community Development Revolving Loan Fund;

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

17         refund program for qualified target industry

18         businesses; providing a definition; authorizing

19         the office to reduce certain employment

20         requirements for an expanding business in a

21         rural community or enterprise zone under

22         certain conditions; creating the Rural Economic

23         Development Initiative within the office and

24         providing its duties and responsibilities;

25         directing specified agencies to select a

26         representative to work with the initiative;

27         providing for an annual report; authorizing the

28         office to accept and administer moneys

29         appropriated for grants to assist rural

30         communities to develop and implement strategic

31         economic development plans; providing for

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  1         review of grant applications; authorizing the

  2         Department of Community Affairs to establish a

  3         grant program to assist rural counties in

  4         financing studies regarding the establishment

  5         of municipal service taxing or benefit units;

  6         providing for rules; providing an

  7         appropriation; providing an effective date.

  8

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

10

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

12  "Rural Economic Development Enhancement Act."

13         Section 2.  Legislative intent.--

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

15  climate, tourism, industrialization, technological advances,

16  federal and state government policies, transportation, and

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

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

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

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

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

22  growth and prosperity cannot continue. In short, successful

23  rural communities are essential to the overall success of the

24  state's economy.

25         (2)  The Legislature further finds and declares that

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

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

28  household incomes are significantly less than the state's

29  median household income level. Job creation rates trail those

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

31  lost jobs, which handicaps local economies and drains wealth

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  1  from these communities. These and other factors, including

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

  3  community problems, making job creation and economic

  4  development even more difficult. Moreover, the Legislature

  5  finds that traditional program and service delivery is often

  6  hampered by the necessarily rigid structure of the programs

  7  themselves, and the lack of local resources.

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

  9  the most efficient and effective delivery of programs of

10  assistance and support to rural communities, including the

11  use, where appropriate, of regulatory flexibility through

12  multiagency coordination and adequate funding. Therefore, the

13  Legislature determines and declares that the provisions of

14  this act fulfill an important state interest.

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

16  163.3177, Florida Statutes, 1998 Supplement, is amended to

17  read:

18         163.3177  Required and optional elements of

19  comprehensive plan; studies and surveys.--

20         (6)  In addition to the requirements of subsections

21  (1)-(5), the comprehensive plan shall include the following

22  elements:

23         (a)  A future land use plan element designating

24  proposed future general distribution, location, and extent of

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

26  industry, agriculture, recreation, conservation, education,

27  public buildings and grounds, other public facilities, and

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

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

30  the control and distribution of population densities and

31  building and structure intensities.  The proposed

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  1  distribution, location, and extent of the various categories

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

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

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

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

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

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

  8  including the amount of land required to accommodate

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

10  character of undeveloped land; the availability of public

11  services; and the need for redevelopment, including the

12  renewal of blighted areas and the elimination of nonconforming

13  uses which are inconsistent with the character of the

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

15  capital investment, and economic development which will

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

17  land use plan may designate areas for future planned

18  development use involving combinations of types of uses for

19  which special regulations may be necessary to ensure

20  development in accord with the principles and standards of the

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

22  land designated for future planned industrial use shall

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

24  necessity to strengthen and diversify the local economies, and

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

26  factors relating to low density population and undiversified

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

28  designate areas for possible future municipal incorporation.

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

30  depict historic district boundaries and shall designate

31  historically significant properties meriting protection.  The

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  1  future land use element must clearly identify the land use

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

  3  delineating the land use categories in which public schools

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

  5  categories sufficient land proximate to residential

  6  development to meet the projected needs for schools in

  7  coordination with public school boards and may establish

  8  differing criteria for schools of different type or size.

  9  Each local government shall include lands contiguous to

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

11  the land use categories in which public schools are an

12  allowable use. All comprehensive plans must comply with this

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

14  the local government evaluation and appraisal report,

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

16  comply with this requirement will result in the prohibition of

17  the local government's ability to amend the local

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

19  proposed by a local government for purposes of identifying the

20  land use categories in which public schools are an allowable

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

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

23  element shall include criteria which encourage the location of

24  schools proximate to urban residential areas to the extent

25  possible and shall require that the local government seek to

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

27  community centers, with schools to the extent possible.

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

29  212.098, Florida Statutes, 1998 Supplement, is amended to

30  read:

31         212.098  Rural Job Tax Credit Program.--

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

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

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

  4  qualified county and is predominantly engaged in, or is

  5  headquarters for a business predominantly engaged in,

  6  activities usually provided for consideration by firms

  7  classified within the following standard industrial

  8  classifications:  SIC 01 through SIC 09 (agriculture,

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

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

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

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

13  parks). Excluded from eligible receipts are receipts from

14  retail sales, except such receipts for hotels and other

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

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

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

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

19  216.023, recommend additions to or deletions from the list of

20  standard industrial classifications used to determine an

21  eligible business, and the Legislature may implement such

22  recommendations. For purposes of this paragraph, the term

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

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

25  those activities usually provided for consideration by firms

26  in the specified standard industrial classification. The

27  determination of whether the business is located in a

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

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

30  section. Commonly owned and controlled entities are to be

31  considered a single business entity.

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  1         Section 5.  There is appropriated from the General

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

  3  to the Rural Community Development Revolving Loan Fund in the

  4  Office of Tourism, Trade, and Economic Development to

  5  implement the provisions of s. 288.065, Florida Statutes.

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

  7  section 288.106, Florida Statutes, 1998 Supplement, and

  8  paragraph (b) of subsection (4) of said section is amended, to

  9  read:

10         288.106  Tax refund program for qualified target

11  industry businesses.--

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

13         (t)  "Rural community" means:

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

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

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

17         3.  A city within a county described in subparagraph 1.

18  or subparagraph 2.

19

20  For purposes of this paragraph, population shall be determined

21  in accordance with the most recent official estimate pursuant

22  to s. 186.901.

23         (4)  APPLICATION AND APPROVAL PROCESS.--

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

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

26  establish the following to the satisfaction of the office:

27         1.  The jobs proposed to be provided under the

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

29  estimated annual average wage equaling at least 115 percent of

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

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

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  1  The office may waive this average wage requirement at the

  2  request of the local governing body recommending the project

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

  4  waived for a project located in a brownfield area designated

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

  6  enterprise zone and only when the merits of the individual

  7  project or the specific circumstances in the community in

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

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

10  recommendation, it must be transmitted in writing and the

11  specific justification for the waiver recommendation must be

12  explained.  If the director elects to waive the wage

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

14  reasons for granting the waiver must be explained.

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

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

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

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

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

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

21  office may approve an expansion of an existing business under

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

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

24  percent if the merits of the individual project or the

25  specific circumstances in the community in relation to the

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

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

28  be transmitted in writing and the specific justification for

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

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

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

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  1         3.  The business activity or product for the

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

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

  4  industries that contribute to the area and to the economic

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

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

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

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

  9  requests to waive the wage requirement for brownfield areas

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

11  action is not in the public interest.

12         Section 7.  Rural Economic Development Initiative.--

13         (1)  The Rural Economic Development Initiative, known

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

15  Economic Development, and the participation of state and

16  regional agencies in this initiative is authorized.

17         (2)  As used in this section:

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

19  fiscal and economic viability of a rural community, including

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

21  values, high unemployment, high underemployment, low weekly

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

23  compared to the state average, high percentages of the

24  population receiving public assistance, high poverty levels

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

26  employment opportunities.

27         (b)  "Rural community" means:

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

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

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

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  1         3.  A city within a county described in subparagraph 1.

  2  or subparagraph 2.

  3

  4  For purposes of this paragraph, population shall be determined

  5  in accordance with the most recent official estimate pursuant

  6  to s. 186.901.

  7         (3)  REDI shall be responsible for coordinating and

  8  focusing the efforts and resources of state and regional

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

10  and community viability of Florida's economically distressed

11  rural communities, working with local governments,

12  community-based organizations, and private organizations that

13  have an interest in the growth and development of these

14  communities to find ways to balance environmental and growth

15  management issues with local needs.

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

17  statutes and rules on rural communities and shall work to

18  minimize any adverse impact.

19         (5)  REDI shall facilitate better access to state

20  resources by promoting direct access and referrals to

21  appropriate state and regional agencies and statewide

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

23  and other advocacy efforts to improve conditions in rural

24  communities. These activities may include sponsorship of

25  conferences and achievement awards.

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

27  of the following agencies and organizations shall designate a

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

29  to serve as the REDI representative for the agency or

30  organization:

31         1.  The Department of Community Affairs.

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  1         2.  The Department of Transportation.

  2         3.  The Department of Environmental Protection.

  3         4.  The Department of Agriculture and Consumer

  4  Services.

  5         5.  The Department of State.

  6         6.  The Department of Health.

  7         7.  The Department of Children and Family Services.

  8         8.  The Department of Corrections.

  9         9.  The Department of Labor and Employment Security.

10         10.  The Department of Education.

11         11.  The Fish and Wildlife Conservation Commission.

12         12.  Each water management district.

13         13.  Enterprise Florida, Inc.

14         14.  The Florida Commission on Tourism or VISIT

15  Florida, Inc.

16         15.  The Florida Regional Planning Council Association.

17         16.  The Florida State Rural Development Council.

18         17.  The Institute of Food and Agricultural Sciences

19  (IFAS).

20

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

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

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

24  Development.

25         (b)  Each REDI representative must have comprehensive

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

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

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

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

30  projects relating to economically distressed rural communities

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

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  1  prompt effective response to problems arising with regard to

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

  3  representatives in the identification of opportunities for

  4  preferential awards of program funds and allowances and waiver

  5  of program requirements when necessary to encourage and

  6  facilitate long-term private capital investment and job

  7  creation.

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

  9  the review and evaluation of statutes and rules for adverse

10  impact on rural communities and the development of alternative

11  proposals to mitigate that impact.

12         (d)  Each REDI representative shall be responsible for

13  ensuring that each district office or facility of his or her

14  agency is informed about the Rural Economic Development

15  Initiative and for providing assistance throughout the agency

16  in the implementation of REDI activities.

17         (7)  REDI shall submit a report to the Governor, the

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

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

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

21  projects currently being coordinated through REDI, the number

22  of preferential awards and allowances made pursuant to this

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

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

25  all waivers of program requirements granted. The report shall

26  also include information as to the economic impact of the

27  projects coordinated by REDI.

28         Section 8.  Florida rural economic development strategy

29  grants.--

30         (1)  As used in this section, "rural community" means:

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

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

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

  3         (c)  A city within a county described in paragraph (a)

  4  or paragraph (b).

  5

  6  For purposes of this subsection, population shall be

  7  determined in accordance with the most recent official

  8  estimate pursuant to s. 186.901.

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

10  Development may accept and administer moneys appropriated to

11  the office for providing grants to assist rural communities to

12  develop and implement strategic economic development plans.

13         (3)  A rural community, an economic development

14  organization in a rural area, or a regional organization

15  representing at least one rural community or one of such

16  economic development organizations may apply for such grants.

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

18  shall establish criteria for reviewing grant applications.

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

20  degree of participation and commitment by the local community

21  and the application's consistency with local comprehensive

22  plans or the application's proposal to ensure such

23  consistency. The International Trade and Economic Development

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

25  shall review each application for a grant and shall submit

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

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

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

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

30  by the Legislature.

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  1         Section 9.  Establishment of municipal service taxing

  2  or benefit units; grants to rural counties.--

  3         (1)  As used in this section, "rural county" means a

  4  county with a population of 75,000 or fewer persons,

  5  determined pursuant to s. 186.901, Florida Statutes.

  6         (2)  Subject to legislative appropriation, the

  7  Department of Community Affairs shall establish a grant

  8  program to assist any rural county in making a determination

  9  whether to establish a municipal service taxing or benefit

10  unit as authorized by s. 125.01, Florida Statutes.  Under this

11  program, any rural county that is considering the

12  establishment of a municipal service taxing or benefit unit

13  and that wishes to conduct a study to determine the necessity

14  for and advisability of establishing such a unit may apply to

15  the department for a grant to assist in financing the study.

16  If the application is approved by the department, the

17  department may award a grant to the county in an amount equal

18  to 75 percent of the cost of the study, if the county agrees

19  to finance 25 percent of the cost of the study itself.  A copy

20  of the study shall be submitted to the department within 30

21  days after it is completed.

22         (3)  The department shall adopt rules to implement the

23  grant program.  Such rules shall include criteria for awarding

24  grants and application requirements, procedures, and forms.

25         Section 10.  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 $1 million to carry out

28  the purposes of a grant program for rural county municipal

29  service taxing or benefit unit feasibility studies.

30         Section 11.  This act shall take effect July 1, 1999.

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