House Bill 0881

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    Florida House of Representatives - 1999                 HB 881

        By Representatives Hart, Murman, Bense, Russell, Wallace,
    Alexander, Prieguez, Barreiro, Detert, C. Green, Johnson,
    Kilmer, Goodlette, Farkas and J. Miller




  1                      A bill to be entitled

  2         An act relating to economic development tax

  3         refunds; amending s. 288.095, F.S.; revising

  4         provisions relating to tax refunds paid from

  5         the Economic Development Incentive Account;

  6         providing a limitation; amending s. 288.106,

  7         F.S., relating to the tax refund program for

  8         qualified target industry businesses; revising

  9         requirements to qualify as an expansion of an

10         existing business or a rural county; revising

11         the counties to which the local financial

12         support exemption option applies; revising

13         requirements for determining the amount of tax

14         refund payments; revising the periods to which

15         refunds apply; revising the information

16         required on the application for certification;

17         authorizing acceptance of a letter from an

18         authorized local economic development agency

19         prior to passage of the required resolution by

20         the local government; authorizing reduction of

21         certain employment requirements for an

22         expanding business in a rural city or county or

23         enterprise zone under certain conditions;

24         revising requirements relating to application

25         approval; authorizing certification of less

26         than allowable refunds under certain

27         conditions; revising requirements relating to

28         the tax refund agreement; authorizing inclusion

29         of the value of county or municipal land

30         conveyed to a business in the required local

31         financial support; amending s. 288.107, F.S.;

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  1         correcting a reference; providing an effective

  2         date.

  3

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

  5

  6         Section 1.  Paragraphs (a) and (b) of subsection (3) of

  7  section 288.095, Florida Statutes, are amended to read:

  8         288.095  Economic Development Trust Fund.--

  9         (3)(a)  Contingent upon an annual appropriation by the

10  Legislature, The Office of Tourism, Trade, and Economic

11  Development may approve applications for certification tax

12  refunds pursuant to ss. 288.1045(3), and 288.106(4), and

13  288.107. However, in no case shall the total state share of

14  tax refund payments scheduled in all active certifications for

15  any one fiscal year exceed $35 million. The office may not

16  approve tax refunds in excess of the amount appropriated to

17  the Economic Development Incentives Account for such tax

18  refunds, for a fiscal year pursuant to paragraph (b).

19         (b)  The total amount of tax refund claims refunds

20  approved for payment by the Office of Tourism, Trade, and

21  Economic Development based on actual project performance

22  pursuant to ss. 288.1045, 288.106, and 288.107 shall not

23  exceed the amount appropriated to the Economic Development

24  Incentives Account for such purposes for the fiscal year. In

25  the event the Legislature does not appropriate an amount

26  sufficient to satisfy projections by the office for tax

27  refunds under ss. 288.1045, 288.106, and 288.107 in a fiscal

28  year, the Office of Tourism, Trade, and Economic Development

29  shall, not later than July 15 of such year, determine the

30  proportion of each refund claim which shall be paid by

31  dividing the amount appropriated for tax refunds for the

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  1  fiscal year by the projected total of refund claims for the

  2  fiscal year. The amount of each claim for a tax refund shall

  3  be multiplied by the resulting quotient. If, after the payment

  4  of all such refund claims, funds remain in the Economic

  5  Development Incentives Account for tax refunds, the office

  6  shall recalculate the proportion for each refund claim and

  7  adjust the amount of each claim accordingly.

  8         Section 2.  Section 288.106, Florida Statutes, 1998

  9  Supplement, is amended to read:

10         288.106  Tax refund program for qualified target

11  industry businesses.--

12         (1)  LEGISLATIVE FINDINGS AND DECLARATIONS.--The

13  Legislature finds that attracting, retaining, and providing

14  favorable conditions for the growth of target industries

15  provides high-quality employment opportunities for citizens of

16  this state and enhances the economic foundations of this

17  state. It is the policy of this state to encourage the growth

18  of a high-value-added employment and economic base by

19  providing tax refunds to qualified target industry businesses

20  that create new high-wage employment opportunities in this

21  state by expanding existing businesses within this state or by

22  bringing new businesses to this state.

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

24         (a)  "Account" means the Economic Development

25  Incentives Account within the Economic Development Trust Fund

26  established under s. 288.095.

27         (b)  "Authorized local economic development agency"

28  means any public or private entity, including those defined by

29  s. 288.075, authorized by a county or municipality to promote

30  the general business or industrial interests of that county or

31  municipality.

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  1         (c)(b)  "Average private sector wage in the area" means

  2  the statewide private sector average wage or the average of

  3  all private sector wages and salaries in the county or in the

  4  standard metropolitan area in which the business is located.

  5         (d)(c)  "Business" means an employing unit, as defined

  6  in s. 443.036, which is registered with the Department of

  7  Labor and Employment Security for unemployment compensation

  8  purposes or a subcategory or division of an employing unit

  9  which is accepted by the Department of Labor and Employment

10  Security as a reporting unit.

11         (e)(d)  "Corporate headquarters business" means an

12  international, national, or regional headquarters office of a

13  multinational or multistate business enterprise or national

14  trade association, whether separate from or connected with

15  other facilities used by such business.

16         (f)(e)  "Office" means the Office of Tourism, Trade,

17  and Economic Development.

18         (g)(f)  "Enterprise zone" means an area designated as

19  an enterprise zone pursuant to s. 290.0065.

20         (h)(g)  "Expansion of an existing business" means the

21  expansion of an existing Florda a business by or through

22  additions to real and personal property on a site colocated

23  with a commercial or industrial operation owned by the same

24  business, resulting in a net increase in employment of not

25  less than 10 percent at such business.

26         (i)(h)  "Fiscal year" means the fiscal year of the

27  state.

28         (j)(i)  "Jobs" means full-time equivalent positions, as

29  such terms are consistent with terms used by the Department of

30  Labor and Employment Security and the United States Department

31  of Labor for purposes of unemployment compensation tax

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  1  administration and employment estimation, resulting directly

  2  from a project in this state. This number shall not include

  3  temporary construction jobs involved with the construction of

  4  facilities for the project or any jobs which have previously

  5  been included in any application for tax refunds under s.

  6  288.104 or this section.

  7         (k)(j)  "Local financial support" means funding from

  8  local sources, public or private, which is paid to the

  9  Economic Development Trust Fund and which is equal to 20

10  percent of the annual tax refund for a qualified target

11  industry business. A qualified target industry business may

12  not provide, directly or indirectly, more than 5 percent of

13  such funding in any fiscal year. The sources of such funding

14  may not include, directly or indirectly, state funds

15  appropriated from the General Revenue Fund or any state trust

16  fund, excluding tax revenues shared with local governments

17  pursuant to law.

18         (l)(k)  "Local financial support exemption option"

19  means the option to exercise an exemption from the local

20  financial support requirement available to any applicant whose

21  project is located in a county with a population of 75,000 or

22  less, or a county with a population of 100,000 or less which

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

24  designated by the Rural Economic Development Initiative. Any

25  applicant that exercises this option shall not be eligible for

26  more than 80 percent of the total tax refunds allowed such

27  applicant under this section.

28         (m)(l)  "New business" means a business which

29  heretofore did not exist in this state, first beginning

30  operations on a site located in this state and clearly

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  1  separate from any other commercial or industrial operations

  2  owned by the same business.

  3         (n)(m)  "Project" means the creation of a new business

  4  or expansion of an existing business.

  5         (o)(n)  "Director" means the Director of the Office of

  6  Tourism, Trade, and Economic Development.

  7         (p)(o)  "Target industry business" means a corporate

  8  headquarters business or any business that is engaged in one

  9  of the target industries identified pursuant to the following

10  criteria developed by the office in consultation with

11  Enterprise Florida, Inc.:

12         1.  Future growth.--Industry forecasts should indicate

13  strong expectation for future growth in both employment and

14  output, according to the most recent available data.  Special

15  consideration should be given to Florida's growing access to

16  international markets or to replacing imports.

17         2.  Stability.--The industry should not be subject to

18  periodic layoffs, whether due to seasonality or sensitivity to

19  volatile economic variables such as weather.  The industry

20  should also be relatively resistant to recession, so that the

21  demand for products of this industry is not necessarily

22  subject to decline during an economic downturn.

23         3.  High wage.--The industry should pay relatively high

24  wages compared to statewide or area averages.

25         4.  Market and resource independent.--The location of

26  industry businesses should not be dependent on Florida markets

27  or resources as indicated by industry analysis.

28         5.  Industrial base diversification and

29  strengthening.--The industry should contribute toward

30  expanding or diversifying the state's or area's economic base,

31  as indicated by analysis of employment and output shares

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  1  compared to national and regional trends.  Special

  2  consideration should be given to industries that strengthen

  3  regional economies by adding value to basic products or

  4  building regional industrial clusters as indicated by industry

  5  analysis.

  6         6.  Economic benefits.--The industry should have strong

  7  positive impacts on or benefits to the state and regional

  8  economies.

  9

10  The office, in consultation with Enterprise Florida, Inc.,

11  shall develop a list of such target industries annually and

12  submit such list as part of the final agency legislative

13  budget request submitted pursuant to s. 216.023(1). A target

14  industry business may not include any industry engaged in

15  retail activities; any electrical utility company; any

16  phosphate or other solid minerals severance, mining, or

17  processing operation; any oil or gas exploration or production

18  operation; or any firm subject to regulation by the Division

19  of Hotels and Restaurants of the Department of Business and

20  Professional Regulation.

21         (q)(p)  "Taxable year" means taxable year as defined in

22  s. 220.03(1)(z).

23         (r)(q)  "Qualified target industry business" means a

24  target industry business that has been approved by the

25  director to be eligible for tax refunds pursuant to this

26  section.

27         (s)(r)  "Rural county" means a county with a population

28  of 75,000 or less, or a county with a population of 100,000 or

29  less which is contiguous to a county with a population of

30  75,000 or less.

31

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  1         (t)(s)  "Rural city" means a city with a population of

  2  10,000 or less, or a city with a population of greater than

  3  10,000 but less than 20,000 which has been determined by the

  4  Office of Tourism, Trade, and Economic Development to have

  5  economic characteristics such as, but not limited to, a

  6  significant percentage of residents on public assistance, a

  7  significant percentage of residents with income below the

  8  poverty level, or a significant percentage of the city's

  9  employment base in agriculture-related industries.

10         (3)  TAX REFUND; ELIGIBLE AMOUNTS.--

11         (a)  There shall be allowed, from the account, a refund

12  to a qualified target industry business for the amount of

13  eligible taxes certified by the director which were paid by

14  such business. The total amount of refunds for all fiscal

15  years for each qualified target industry business must be

16  determined pursuant to subsection (4). The annual amount of a

17  refund to a qualified target industry business must be

18  determined pursuant to subsection (6).

19         (b)  Upon approval by the director, a qualified target

20  industry business shall be allowed tax refund payments equal

21  to $3,000 times the number of jobs specified in the tax refund

22  agreement under subparagraph (5)(a)1., or equal to $6,000

23  times the number of jobs if the project is located in a rural

24  county or an enterprise zone. Further, a qualified target

25  industry business shall be allowed additional tax refund

26  payments equal to $1,000 times the number of jobs specified in

27  the tax refund agreement under subparagraph (5)(a)1. if such

28  jobs pay an annual average wage of at least 150 percent of the

29  average private sector wage in the area, or equal to $2,000

30  times the number of jobs if such jobs pay an annual average

31  wage of at least 200 percent of the average private sector

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  1  wage in the area. The director may approve a qualified target

  2  industry business to receive tax refund payments of up to

  3  $5,000 times the number of jobs specified in the tax refund

  4  agreement under subparagraph (5)(a)1., or up to $7,500 times

  5  the number of jobs if the project is located in an enterprise

  6  zone. A qualified target industry business may not receive

  7  refund payments of more than 25 percent of the total tax

  8  refunds specified in the tax refund agreement under

  9  subparagraph (5)(a)1. in any fiscal year. Further, a qualified

10  target industry business may not receive more than $1.5

11  million in refunds under this section in any single fiscal

12  year, or more than $2.5 million in any single fiscal year if

13  the project is located in an enterprise zone. A qualified

14  target industry may not receive more than $5 million in refund

15  payments under this section in all fiscal years, or more than

16  $7.5 million if the project is located in an enterprise zone.

17  Funds made available pursuant to this section may not be

18  expended in connection with the relocation of a business from

19  one community to another community in this state unless the

20  Office of Tourism, Trade, and Economic Development determines

21  that without such relocation the business will move outside

22  this state or determines that the business has a compelling

23  economic rationale for the relocation and that the relocation

24  will create additional jobs.

25         (c)  After entering into a tax refund agreement under

26  subsection (5), a qualified target industry business may:

27         1.  Receive refunds from the account for the following

28  taxes due and paid by that business beginning with the first

29  taxable year of the business which begins after entering into

30  the agreement:

31

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  1         1.  Taxes on sales, use, and other transactions under

  2  chapter 212.

  3         a.2.  Corporate income taxes under chapter 220.

  4         3.  Intangible personal property taxes under chapter

  5  199.

  6         4.  Emergency excise taxes under chapter 221.

  7         5.  Excise taxes on documents under chapter 201.

  8         6.  Ad valorem taxes paid, as defined in s. 220.03(1).

  9         b.7.  Insurance premium tax under s. 624.509.

10         2.  Receive refunds from the account for the following

11  taxes due and paid by that business after entering into the

12  agreement:

13         a.  Taxes on sales, use, and other transactions under

14  chapter 212.

15         b.  Intangible personal property taxes under chapter

16  199.

17         c.  Emergency excise taxes under chapter 221.

18         d.  Excise taxes on documents under chapter 201.

19         e.  Ad valorem taxes paid, as defined in s. 220.03(1).

20         (d)  However, A qualified target industry business may

21  not receive a refund under this section for any amount of

22  credit, refund, or exemption granted to that business for any

23  of the such taxes specified in paragraph (c). If a refund for

24  such taxes is provided by the office, which taxes are

25  subsequently adjusted by the application of any credit,

26  refund, or exemption granted to the qualified target industry

27  business other than as provided in this section, the business

28  shall reimburse the account for the amount of that credit,

29  refund, or exemption. A qualified target industry business

30  shall notify and tender payment to the office within 20 days

31

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  1  after receiving any credit, refund, or exemption other than

  2  one provided in this section.

  3         (e)(d)  A qualified target industry business that

  4  fraudulently claims a refund under this section:

  5         1.  Is liable for repayment of the amount of the refund

  6  to the account, plus a mandatory penalty in the amount of 200

  7  percent of the tax refund which shall be deposited into the

  8  General Revenue Fund.

  9         2.  Is guilty of a felony of the third degree,

10  punishable as provided in s. 775.082, s. 775.083, or s.

11  775.084.

12         (4)  APPLICATION AND APPROVAL PROCESS.--

13         (a)  To apply for certification as a qualified target

14  industry business under this section, the business must file

15  an application with the office before the business has made

16  the decision to locate a new business in this state or before

17  the business had made the decision to expand an existing

18  business in this state. The application shall include, but is

19  not limited to, the following information:

20         1.  The applicant's federal employer identification

21  number and the applicant's state sales tax registration

22  number.

23         2.  The permanent location of the applicant's facility

24  in this state at which the project is or is to be located.

25         3.  A description of the type of business activity or

26  product covered by the project, including four-digit SIC codes

27  for all activities included in the project.

28         4.  The number of full-time equivalent jobs in this

29  state that are or will be dedicated to the project and the

30  average wage of those jobs. If more than one type of business

31  activity or product is included in the project, the number of

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  1  jobs and average wage for those jobs must be separately stated

  2  for each type of business activity or product.

  3         5.  The total number of full-time equivalent employees

  4  employed by the applicant in this state.

  5         6.  The anticipated commencement date of the project.

  6         7.  The amount of:

  7         a.  Taxes on sales, use, and other transactions paid

  8  under chapter 212;

  9         b.  Corporate income taxes paid under chapter 220;

10         c.  Intangible personal property taxes paid under

11  chapter 199;

12         d.  Emergency excise taxes paid under chapter 221; and

13         e.  Excise taxes on documents paid under chapter 201.

14         8.  The estimated amount of tax refunds to be claimed

15  in each fiscal year.

16         7.9.  A brief statement concerning the role that the

17  tax refunds requested will play in the decision of the

18  applicant to locate or expand in this state.

19         8.10.  An estimate of the proportion of the sales

20  resulting from the project that will be made outside this

21  state.

22         9.11.  A resolution adopted by the governing board of

23  the county or municipality in which the project will be

24  located, which resolution recommends that certain types of

25  businesses be approved as a qualified target industry business

26  and states that the commitments of local financial support

27  necessary for the target industry business exist. In advance

28  of the passage of such resolution, the office may also accept

29  an official letter from an authorized local economic

30  development agency which endorses the proposed target industry

31  project and pledges that sources of local financial support

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  1  for such project exist. For the purpose of making pledges of

  2  local financial support, the authorized local economic

  3  development agency shall be officially designated by the

  4  passage of a one-time resolution by the local governing

  5  authority. Before adoption of the resolution, the governing

  6  board may review the proposed public or private sources of

  7  such support and determine whether the proposed sources of

  8  local financial support can be provided.

  9         10.12.  Any additional information requested by the

10  office.

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

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

13  establish the following to the satisfaction of the office:

14         1.  The jobs proposed to be provided under the

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

16  estimated annual average wage equaling at least 115 percent of

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

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

19  The office may waive this average wage requirement at the

20  request of the local governing body recommending the project

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

22  waived for a project located in a brownfield area designated

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

24  enterprise zone and only when the merits of the individual

25  project or the specific circumstances in the community in

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

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

28  recommendation, it must be transmitted in writing and the

29  specific justification for the waiver recommendation must be

30  explained.  If the director elects to waive the wage

31

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

  2  reasons for granting the waiver must be explained.

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

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

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

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

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

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

  9  office may approve an expansion of an existing business under

10  this section in a rural city, a rural county, or an enterprise

11  zone that results in a net increase in employment of less than

12  10 percent at the business if the merits of the individual

13  project or the specific circumstances in the community in

14  relation to the project warrant this action. If the local

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

16  request, it must be transmitted in writing and the specific

17  justification for the request must be explained. If the

18  director elects to accept such request, this decision must be

19  stated in writing and the reasons for granting the request

20  must be explained.

21         3.  The business activity or product for the

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

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

24  industries that contribute to the area and to the economic

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

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

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

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

29  requests to waive the wage requirement for brownfield areas

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

31  action is not in the public interest.

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  1         (c)  Each application meeting the requirements of

  2  paragraph (b) must be submitted to the office for

  3  determination of eligibility. The office shall review and

  4  evaluate each application based on, but not limited to, the

  5  following criteria:

  6         1.  Expected contributions to the state strategic

  7  economic development plan adopted by Enterprise Florida, Inc.,

  8  taking into account the long-term effects of the project and

  9  of the applicant on the state economy.

10         2.  The economic benefit of the jobs created by the

11  project in this state, taking into account the cost and

12  average wage of each job created.

13         3.  The amount of capital investment to be made by the

14  applicant in this state.

15         4.  The local commitment and support for the project.

16         5.  The effect of the project on the local community,

17  taking into account the unemployment rate for the county where

18  the project will be located.

19         6.  The effect of any tax refunds granted pursuant to

20  this section on the viability of the project and the

21  probability that the project will be undertaken in this state

22  if such tax refunds are granted to the applicant, taking into

23  account the expected long-term commitment of the applicant to

24  economic growth and employment in this state.

25         7.  The expected long-term commitment to this state

26  resulting from the project.

27         8.  A review of the business's past activities in this

28  state or other states, including whether such business has

29  been subjected to criminal or civil fines and penalties.

30  Nothing in this subparagraph shall require the disclosure of

31  confidential information.

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  1         (d)  The office shall forward its written findings and

  2  evaluation concerning each application meeting the

  3  requirements of paragraph (b) to the director within 45

  4  calendar days after receipt of a complete application. The

  5  office shall notify each target industry business when its

  6  application is complete, and of the time when the 45-day

  7  period begins. In its written report to the director, the

  8  office shall specifically address each of the factors

  9  specified in paragraph (c) and shall make a specific

10  assessment with respect to the minimum requirements

11  established in paragraph (b). The office shall include in its

12  report projections of the tax refund claim that will be sought

13  by the target industry business in each fiscal year based on

14  the information submitted in the application.

15         (e)1.  Within 30 days after receipt of the office's

16  findings and evaluation, the director shall issue a letter of

17  certification enter a final order that either approves or

18  disapproves the application of the target industry business.

19  The decision must be in writing and must provide the

20  justifications for approval or disapproval.

21         2.  If appropriate, the director shall enter into a

22  written agreement with the qualified target industry business

23  pursuant to subsection (5).

24         (f)  The director may not certify enter a final order

25  that certifies any target industry business as a qualified

26  target industry business if the value of tax refunds to be

27  included in that letter of certification final order exceeds

28  the available amount of authority to certify new businesses

29  enter final orders as determined in s. 288.095(3). In the

30  event the commitments of local financial support represent

31  less than 20 percent of the eligible tax refund payments, or

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  1  to otherwise preserve the viability and fiscal integrity of

  2  the program, the director may certify a qualified target

  3  industry business to receive tax refund payments of less than

  4  the allowable amounts specified in paragraph (3)(b). A letter

  5  of certification final order that approves an application must

  6  specify the maximum amount of tax refund that will be

  7  available to the qualified industry business in each fiscal

  8  year and the total amount of tax refunds that will be

  9  available to the business for all fiscal years.

10         (g)  Nothing in this section shall create a presumption

11  that an applicant will receive any tax refunds under this

12  section. However, the office may issue nonbinding opinion

13  letters, upon the request of prospective applicants, as to the

14  applicants' eligibility and the potential amount of refunds.

15         (5)  TAX REFUND AGREEMENT.--

16         (a)  Each qualified target industry business must enter

17  into a written agreement with the office which specifies, at a

18  minimum:

19         1.  The total number of full-time equivalent jobs in

20  this state that will be dedicated to the project, the average

21  wage of those jobs, the definitions that will apply for

22  measuring the achievement of these terms during the pendency

23  of the agreement, and a time schedule or plan for when such

24  jobs will be in place and active in this state. This

25  information must be the same as the information contained in

26  the application submitted by the business under subsection

27  (4).

28         2.  The maximum amount of tax refunds which the

29  qualified target industry business is eligible to receive on

30  the project and the maximum amount of a tax refund that the

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  1  qualified target industry business is eligible to receive in

  2  each fiscal year.

  3         3.  That the office may review and verify the financial

  4  and personnel records of the qualified target industry

  5  business to ascertain whether that business is in compliance

  6  with this section.

  7         4.  The date after which, in each fiscal year, the

  8  qualified target industry business may file an annual claim

  9  under subsection (6).

10         5.  That local financial support will be annually

11  available and will be paid to the account. The director may

12  not enter into a written agreement with a qualified target

13  industry business if a local financial support resolution is

14  not passed by the local governing authority within 90 days

15  after issuance of the letter of certification pursuant to

16  subsection (4).

17         (b)  Compliance with the terms and conditions of the

18  agreement is a condition precedent for the receipt of a tax

19  refund each year. The failure to comply with the terms and

20  conditions of the tax refund agreement results in the loss of

21  eligibility for receipt of all tax refunds previously

22  authorized under this section and the revocation by the

23  director of the certification of the business entity as a

24  qualified target industry business.

25         (c)  The agreement must be signed by the director and

26  by an authorized officer of the qualified target industry

27  business within 120 30 days after the issuance of the letter

28  of certification entry of a final order certifying the

29  business entity as a qualified target industry business under

30  subsection (4), but not before passage and receipt of the

31  resolution of local financial support.

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  1         (d)  The agreement must contain the following legend,

  2  clearly printed on its face in bold type of not less than 10

  3  points in size: "This agreement is neither a general

  4  obligation of the State of Florida, nor is it backed by the

  5  full faith and credit of the State of Florida. Payment of tax

  6  refunds are conditioned on and subject to specific annual

  7  appropriations by the Florida Legislature of moneys sufficient

  8  to pay amounts authorized in section 288.106, Florida

  9  Statutes."

10         (6)  ANNUAL CLAIM FOR REFUND.--

11         (a)  A qualified target industry business that has

12  entered into a tax refund agreement with the office under

13  subsection (5) may apply once each fiscal year to the office

14  for a tax refund. The application must be made on or after the

15  date specified in that agreement.

16         (b)  The claim for refund by the qualified target

17  industry business must include a copy of all receipts

18  pertaining to the payment of taxes for which the refund is

19  sought and data related to achievement of each performance

20  item specified in the tax refund agreement. The amount

21  requested as a tax refund may not exceed the amount specified

22  for that fiscal year in that agreement.

23         (c)  A tax refund may not be approved for a qualified

24  target industry business unless the required local financial

25  support has been paid into the account in that fiscal year. If

26  the local financial support provided is less than 20 percent

27  of the approved tax refund, the tax refund must be reduced. In

28  no event may the tax refund exceed an amount that is equal to

29  5 times the amount of the local financial support received.

30  Further, funding from local sources includes any tax abatement

31  granted to that business under s. 196.1995, or the appraised

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  1  market value of municipal or county land conveyed or provided

  2  at a discount to that business.; and The amount of any tax

  3  refund for such business approved under this section must be

  4  reduced by the amount of any such tax abatement granted or the

  5  value of the land granted; and the limitations in subsection

  6  (3) and paragraph (4)(f) must be reduced by the amount of any

  7  such tax abatement or the value of the land granted. A report

  8  listing all sources of the local financial support shall be

  9  provided to the office when such support is paid to the

10  account.

11         (d)  A prorated tax refund, less a 5-percent penalty,

12  shall be approved for a qualified target industry business

13  provided all other applicable requirements have been satisfied

14  and the business proves to the satisfaction of the director

15  that it has achieved at least 80 percent of its projected

16  employment.

17         (e)  The director, with such assistance as may be

18  required from the office, the Department of Revenue, or the

19  Department of Labor and Employment Security, shall specify by

20  written final order the amount of the tax refund that is

21  authorized for the qualified target industry business for the

22  fiscal year within 30 days after the date that the claim for

23  the annual tax refund is received by the office.

24         (f)  The total amount of tax refund claims refunds

25  approved by the director under this section in any fiscal year

26  must not exceed the amount authorized under s. 288.095(3).

27         (g)  Upon approval of the tax refund under paragraphs

28  (c), (d), and (e), the Comptroller shall issue a warrant for

29  the amount specified in the final order. If the final order is

30  appealed, the Comptroller may not issue a warrant for a refund

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  1  to the qualified target industry business until the conclusion

  2  of all appeals of that order.

  3         (7)  ADMINISTRATION.--

  4         (a)  The office is authorized to verify information

  5  provided in any claim submitted for tax credits under this

  6  section with regard to employment and wage levels or the

  7  payment of the taxes to the appropriate agency or authority,

  8  including the Department of Revenue, the Department of Labor

  9  and Employment Security, or any local government or authority.

10         (b)  To facilitate the process of monitoring and

11  auditing applications made under this program, the office may

12  provide a list of qualified target industry businesses to the

13  Department of Revenue, to the Department of Labor and

14  Employment Security, or to any local government or authority.

15  The office may request the assistance of those entities with

16  respect to monitoring the payment of the taxes listed in

17  subsection (3).

18         (8)  EXPIRATION.--This section expires June 30, 2004.

19         Section 3.  Paragraph (e) of subsection (1) of section

20  288.107, Florida Statutes, 1998 Supplement, is amended to

21  read:

22         288.107  Brownfield redevelopment bonus refunds.--

23         (1)  DEFINITIONS.--As used in this section:

24         (e)  "Eligible business" means a qualified target

25  industry business as defined in s. 288.106(2)(o).

26         Section 4.  This act shall take effect July 1, 1999.

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  1            *****************************************

  2                          HOUSE SUMMARY

  3
      Revises provisions relating to tax refunds paid from the
  4    Economic Development Incentive Account and provides a
      limitation.
  5

  6    Revises provisions relating to the tax refund program for
      qualified target industry businesses. Revises
  7    requirements to qualify as an expansion of an existing
      business or a rural county. Revises the counties to which
  8    the local financial support exemption option applies.
      Revises requirements for determining the amount of tax
  9    refund payments and revises the periods to which refunds
      apply. Revises the information required on the
10    application for certification. Authorizes acceptance of a
      letter from an authorized local economic development
11    agency prior to passage of the required resolution by the
      local government. Authorizes reduction of certain
12    employment requirements for an expanding business in a
      rural city or county or enterprise zone under certain
13    conditions. Revises requirements relating to application
      approval. Authorizes certification of less than allowable
14    refunds under certain conditions. Revises requirements
      relating to the tax refund agreement. Authorizes
15    inclusion of the value of county or municipal land
      conveyed to a business in the required local financial
16    support.

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