House Bill 0881c1

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    Florida House of Representatives - 1999              CS/HB 881

        By the Committee on Business Development & International
    Trade and Representatives Hart, Bradley, 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;

  3         amending s. 14.2015, F.S.; specifying the

  4         programs and funds that the Office of Tourism,

  5         Trade, and Economic Development is authorized

  6         to administer; authorizing the office to expend

  7         interest earned from certain trust fund

  8         investments for program administration;

  9         specifying the duties in connection with which

10         the office may enter into contracts; creating

11         the Office of Urban Opportunity within the

12         Office of Tourism, Trade, and Economic

13         Development and providing its duties; amending

14         s. 288.095, F.S.; revising provisions relating

15         to tax refunds paid from the Economic

16         Development Incentive Account; providing a

17         limitation; amending s. 288.1045, F.S.,

18         relating to the qualified defense contractor

19         tax refund program; replacing references to the

20         Department of Commerce and the Division of

21         Economic Development with the Office of

22         Tourism, Trade, and Economic Development, and

23         references to the Secretary of Commerce with

24         the director of the office; revising provisions

25         relating to the limitation on such refunds;

26         extending the expiration date for certification

27         for such refunds; amending s. 288.106, F.S.,

28         relating to the tax refund program for

29         qualified target industry businesses; providing

30         for determination of number of employees for

31         businesses registered as a statewide reporting

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  1         unit; revising requirements to qualify as an

  2         expansion of an existing business or a rural

  3         county; revising the counties to which the

  4         local financial support exemption option

  5         applies; revising requirements for determining

  6         the amount of tax refund payments; revising the

  7         limitations on refunds for projects located in

  8         an enterprise zone, rural county, or rural

  9         city; authorizing acceptance of a letter from

10         an authorized local economic development agency

11         prior to passage of the required resolution by

12         the local government; authorizing reduction of

13         certain employment requirements for an

14         expanding business in a rural city or county or

15         enterprise zone under certain conditions;

16         revising requirements relating to application

17         approval; authorizing certification of less

18         than allowable refunds under certain

19         conditions; revising requirements relating to

20         the tax refund agreement; authorizing inclusion

21         of the value of county or municipal land

22         conveyed to a business in the required local

23         financial support; authorizing the office to

24         contract with Enterprise Florida, Inc., for

25         certain administrative duties; amending s.

26         288.107, F.S.; correcting a reference; creating

27         the Institute on Urban Policy and Commerce at

28         Florida Agricultural and Mechanical University

29         and providing its purposes and duties;

30         providing for the establishment of regional

31         urban centers; requiring annual reports by the

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  1         institute and the Governor; providing

  2         legislative findings with respect to attracting

  3         certain high-impact business facilities to the

  4         state; creating the Florida Economic

  5         Opportunities Incentive Fund within the Office

  6         of Tourism, Trade, and Economic Development and

  7         providing for transfer of certain funds

  8         thereto; directing Enterprise Florida, Inc., to

  9         evaluate proposals for use of funds for such

10         facilities and make recommendations to the

11         office; requiring approval by the Governor;

12         providing for a contract between the director

13         of the office and an approved business with

14         respect to payment of such funds; providing

15         legislative findings with respect to the

16         economic health of small communities; providing

17         conditions for determining when a state of

18         economic emergency exists in a community;

19         providing for notification by a local

20         government entity to the Governor, the office,

21         and Enterprise Florida, Inc., when such

22         conditions exist; authorizing the Governor to

23         waive eligibility criteria for certain programs

24         or activities and take other action to resolve

25         the economic emergency; providing effective

26         dates.

27

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

29

30

31

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  1         Section 1.  Paragraph (g) of subsection (2) of section

  2  14.2015, Florida Statutes, 1998 Supplement, is amended, and

  3  subsection (10) is added to said section, to read:

  4         14.2015  Office of Tourism, Trade, and Economic

  5  Development; creation; powers and duties.--

  6         (2)  The purpose of the Office of Tourism, Trade, and

  7  Economic Development is to assist the Governor in working with

  8  the Legislature, state agencies, business leaders, and

  9  economic development professionals to formulate and implement

10  coherent and consistent policies and strategies designed to

11  provide economic opportunities for all Floridians.  To

12  accomplish such purposes, the Office of Tourism, Trade, and

13  Economic Development shall:

14         (g)1.  Administer the Florida Enterprise Zone Act under

15  ss. 290.001-290.016, the community contribution tax credit

16  program under ss. 220.183 and 624.5105, the tax refund program

17  for qualified target industry businesses under s. 288.106 and

18  for qualified defense contractors under s. 288.1045,

19  high-impact performance incentives under s. 288.108, the base

20  realignment and closure grants under s. 288.980(2)(a), Florida

21  defense planning grants under s. 288.980(3)(a), the Florida

22  Defense Implementation Grant Program under s. 288.980(3)(b),

23  military installation reuse planning and marketing grants

24  under s. 288.980(3)(c), the defense-related business

25  adjustment grant program under s. 288.980(4), the urban

26  high-crime area job tax credit under s. 212.097, the rural job

27  tax credit under s. 212.098, the WAGES pilot matching grant

28  program under s. 8, chapter 97-278, Laws of Florida, the

29  silicon technology sales tax exemption under s. 212.08(5)(j),

30  brownfield redevelopment bonus refunds under s. 288.107, the

31  brownfield areas loan guarantee program under s. 376.86,

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  1  expedited permitting under s. 403.973(9), contracts for

  2  transportation projects under s. 288.063, the sports franchise

  3  facility program under s. 288.1162, the professional golf hall

  4  of fame facility program under s. 288.1168, the Florida Jobs

  5  Siting Act under ss. 403.950-403.972, the Rural Community

  6  Development Revolving Loan Fund under s. 288.065, the Regional

  7  Rural Development Grants Program under s. 288.018, the

  8  Certified Capital Company Act under s. 288.99, the Florida

  9  State Rural Development Council, and the Rural Economic

10  Development Initiative. Notwithstanding the provisions of the

11  laws cited in this subparagraph, the office may expend

12  interest earned from the investment of program funds deposited

13  in the Economic Development Trust Fund, the Grants and

14  Donations Trust Fund, the Brownfield Property Ownership

15  Clearance Assistance Revolving Loan Trust Fund, and the

16  Economic Development Transportation Trust Fund to contract for

17  the administration of the programs, or portions of the

18  programs, enumerated in this subparagraph or similar programs

19  assigned to the office by statute or through the

20  appropriations process.  These expenditures shall be subject

21  to review under chapter 216.

22         2.  The office may enter into contracts in connection

23  with the fulfillment of its duties concerning the Florida

24  First Business Bond Pool under chapter 159, tax incentives

25  under chapters 212 and 220, tax incentives under the Certified

26  Capital Company Act in chapter 288, foreign offices under

27  chapter 288, the Enterprise Zone program under chapter 290,

28  the Seaport Employment Training program under chapter 311, the

29  Florida Professional Sports Team License Plates under chapter

30  320, Spaceport Florida under chapter 331, Job Siting and

31  Expedited Permitting under chapter 403, the Rural Community

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  1  Development Revolving Loan Fund under s. 288.065, the Regional

  2  Rural Development Grants Program under s. 288.018, the

  3  Certified Capital Company Act under s. 288.99, the Florida

  4  State Rural Development Council, the Rural Economic

  5  Development Initiative, the tax refund program for qualified

  6  target industry businesses under s. 288.106 and for qualified

  7  defense contractors under s. 288.1045, high-impact performance

  8  incentives under s. 288.108, the base realignment and closure

  9  grants under s. 288.980(2)(a), Florida defense planning grants

10  under s. 288.980(3)(a), the Florida Defense Implementation

11  Grant Program under s. 288.980(3)(b), military installation

12  reuse planning and marketing grants under s. 288.980(3)(c),

13  the defense-related business adjustment grant program under s.

14  288.980(4), the urban high-crime area job tax credit under s.

15  212.097, the rural job tax credit under s. 212.098, the WAGES

16  pilot matching grant program under s. 8, chapter 97-278, Laws

17  of Florida, the silicon technology sales tax exemption under

18  s. 212.08(5)(j), brownfield redevelopment bonus refunds under

19  s. 288.107, the brownfield areas loan guarantee program under

20  s. 376.86, expedited permitting under 403.973(9), contracts

21  for transportation projects under s. 288.063, and in carrying

22  out other functions that are specifically assigned to the

23  office by law or through the appropriations process.

24         (10)(a)  The Office of Urban Opportunity is created

25  within the Office of Tourism, Trade, and Economic Development.

26  The director of the Office of Urban Opportunity shall be

27  appointed by and serve at the pleasure of the Governor.

28         (b)  The purpose of the Office of Urban Opportunity

29  shall be to administer the Front Porch Florida initiative, a

30  comprehensive, community-based urban core redevelopment

31  program that will empower urban core residents to craft

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  1  solutions to the unique challenges of each designated

  2  community.

  3         Section 2.  Paragraphs (a) and (b) of subsection (3) of

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

  5         288.095  Economic Development Trust Fund.--

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

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

  8  Development may approve applications for certification tax

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

10  288.107. However, in no case shall the total state share of

11  tax refund payments scheduled in all active certifications for

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

13  approve tax refunds in excess of the amount appropriated to

14  the Economic Development Incentives Account for such tax

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

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

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

18  Economic Development based on actual project performance

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

20  exceed the amount appropriated to the Economic Development

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

22  the event the Legislature does not appropriate an amount

23  sufficient to satisfy projections by the office for tax

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

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

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

27  proportion of each refund claim which shall be paid by

28  dividing the amount appropriated for tax refunds for the

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

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

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

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

  2  Development Incentives Account for tax refunds, the office

  3  shall recalculate the proportion for each refund claim and

  4  adjust the amount of each claim accordingly.

  5         Section 3.  Effective June 30, 1999, section 288.1045,

  6  Florida Statutes, is amended to read:

  7         288.1045  Qualified defense contractor tax refund

  8  program.--

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

10         (a)  "Consolidation of a Department of Defense

11  contract" means the consolidation of one or more of an

12  applicant's facilities under one or more Department of Defense

13  contracts either from outside this state or from inside and

14  outside this state, into one or more of the applicant's

15  facilities inside this state.

16         (b)  "Average wage in the area" means the average of

17  all wages and salaries in the state, the county, or in the

18  standard metropolitan area in which the business unit is

19  located.

20         (c)  "Applicant" means any business entity that holds a

21  valid Department of Defense contract or any business entity

22  that is a subcontractor under a valid Department of Defense

23  contract or any business entity that holds a valid contract

24  for the reuse of a defense-related facility, including all

25  members of an affiliated group of corporations as defined in

26  s. 220.03(1)(b).

27         (d)  "Office" "Division" means the Office of Tourism,

28  Trade, and Economic Development Division of Economic

29  Development of the Department of Commerce.

30         (e)  "Department of Defense contract" means a

31  competitively bid Department of Defense contract or a

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  1  competitively bid federal agency contract issued on behalf of

  2  the Department of Defense for manufacturing, assembling,

  3  fabricating, research, development, or design with a duration

  4  of 2 or more years, but excluding any contract to provide

  5  goods, improvements to real or tangible property, or services

  6  directly to or for any particular military base or

  7  installation in this state.

  8         (f)  "New Department of Defense contract" means a

  9  Department of Defense contract entered into after the date

10  application for certification as a qualified applicant is made

11  and after January 1, 1994.

12         (g)  "Jobs" means full-time equivalent positions,

13  consistent with the use of such terms by the Department of

14  Labor and Employment Security for the purpose of unemployment

15  compensation tax, resulting directly from a project in this

16  state. This number does not include temporary construction

17  jobs involved with the construction of facilities for the

18  project.

19         (h)  "Nondefense production jobs" means employment

20  exclusively for activities that, directly or indirectly, are

21  unrelated to the Department of Defense.

22         (i)  "Project" means any business undertaking in this

23  state under a new Department of Defense contract,

24  consolidation of a Department of Defense contract, or

25  conversion of defense production jobs over to nondefense

26  production jobs or reuse of defense-related facilities.

27         (j)  "Qualified applicant" means an applicant that has

28  been approved by the director secretary to be eligible for tax

29  refunds pursuant to this section.

30

31

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  1         (k)  "Director" "Secretary" means the director of the

  2  Office of Tourism, Trade, and Economic Development Secretary

  3  of Commerce.

  4         (l)  "Taxable year" means the same as in s.

  5  220.03(1)(z).

  6         (m)  "Fiscal year" means the fiscal year of the state.

  7         (n)  "Business unit" means an employing unit, as

  8  defined in s. 443.036, that is registered with the Department

  9  of Labor and Employment Security for unemployment compensation

10  purposes or means a subcategory or division of an employing

11  unit that is accepted by the Department of Labor and

12  Employment Security as a reporting unit.

13         (o)  "Local financial support" means funding from local

14  sources, public or private, which is paid to the Economic

15  Development Trust Fund and which is equal to 20 percent of the

16  annual tax refund for a qualified applicant. Local financial

17  support may include excess payments made to a utility company

18  under a designated program to allow decreases in service by

19  the utility company under conditions, regardless of when

20  application is made. A qualified applicant may not provide,

21  directly or indirectly, more than 5 percent of such funding in

22  any fiscal year. The sources of such funding may not include,

23  directly or indirectly, state funds appropriated from the

24  General Revenue Fund or any state trust fund, excluding tax

25  revenues shared with local governments pursuant to law.

26         (p)  "Contract for reuse of a defense-related facility"

27  means a contract with a duration of 2 or more years for the

28  use of a facility for manufacturing, assembling, fabricating,

29  research, development, or design of tangible personal

30  property, but excluding any contract to provide goods,

31  improvements to real or tangible property, or services

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  1  directly to or for any particular military base or

  2  installation in this state. Such facility must be located

  3  within a port, as defined in s. 313.21, and have been occupied

  4  by a business entity that held a valid Department of Defense

  5  contract or occupied by any branch of the Armed Forces of the

  6  United States, within 1 year of any contract being executed

  7  for the reuse of such facility. A contract for reuse of a

  8  defense-related facility may not include any contract for

  9  reuse of such facility for any Department of Defense contract

10  for manufacturing, assembling, fabricating, research,

11  development, or design.

12         (q)  "Local financial support exemption option" means

13  the option to exercise an exemption from the local financial

14  support requirement available to any applicant whose project

15  is located in a county designated by the Rural Economic

16  Development Initiative, if the county commissioners of the

17  county in which the project will be located adopt a resolution

18  requesting that the applicant's project be exempt from the

19  local financial support requirement. Any applicant that

20  exercises this option is not eligible for more than 80 percent

21  of the total tax refunds allowed such applicant under this

22  section.

23         (2)  GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.--

24         (a)  There shall be allowed, from the Economic

25  Development Trust Fund, a refund to a qualified applicant for

26  the amount of eligible taxes certified by the director

27  secretary which were paid by such qualified applicant. The

28  total amount of refunds for all fiscal years for each

29  qualified applicant shall be determined pursuant to subsection

30  (3). The annual amount of a refund to a qualified applicant

31  shall be determined pursuant to subsection (5).

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  1         (b)  A qualified applicant may not be qualified for any

  2  project to receive more than $5,000 times the number of jobs

  3  provided in the tax refund agreement pursuant to subparagraph

  4  (4)(a)1. A qualified applicant may not receive refunds of more

  5  than 25 percent of the total tax refunds provided in the tax

  6  refund agreement pursuant to subparagraph (4)(a)1. in any

  7  fiscal year, provided that no qualified applicant may receive

  8  more than $2.5 million in tax refunds pursuant to this section

  9  in any fiscal year.

10         (c)  A qualified applicant may not receive more than

11  $7.5 million in tax refunds pursuant to this section in all

12  fiscal years.

13         (d)  Contingent upon an annual appropriation by the

14  Legislature, the director secretary may approve no not more

15  than the lesser of $25 million in tax refunds than or the

16  amount appropriated to the Economic Development Trust Fund for

17  tax refunds, for a fiscal year pursuant to subsection (5) and

18  s. 288.095.

19         (e)  For the first 6 months of each fiscal year, the

20  director secretary shall set aside 30 percent of the amount

21  appropriated for refunds pursuant to this section by the

22  Legislature to provide tax refunds only to qualified

23  applicants who employ 500 or fewer full-time employees in this

24  state. Any unencumbered funds remaining undisbursed from this

25  set-aside at the end of the 6-month period may be used to

26  provide tax refunds for any qualified applicants pursuant to

27  this section.

28         (f)  After entering into a tax refund agreement

29  pursuant to subsection (4), a qualified applicant may receive

30  refunds from the Economic Development Trust Fund for the

31  following taxes due and paid by the qualified applicant

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  1  beginning with the applicant's first taxable year that begins

  2  after entering into the agreement:

  3         1.  Taxes on sales, use, and other transactions paid

  4  pursuant to chapter 212.

  5         2.  Corporate income taxes paid pursuant to chapter

  6  220.

  7         3.  Intangible personal property taxes paid pursuant to

  8  chapter 199.

  9         4.  Emergency excise taxes paid pursuant to chapter

10  221.

11         5.  Excise taxes paid on documents pursuant to chapter

12  201.

13         6.  Ad valorem taxes paid, as defined in s.

14  220.03(1)(a) on June 1, 1996.

15

16  However, a qualified applicant may not receive a tax refund

17  pursuant to this section for any amount of credit, refund, or

18  exemption granted such contractor for any of such taxes. If a

19  refund for such taxes is provided by the office Department of

20  Commerce, which taxes are subsequently adjusted by the

21  application of any credit, refund, or exemption granted to the

22  qualified applicant other than that provided in this section,

23  the qualified applicant shall reimburse the Economic

24  Development Trust Fund for the amount of such credit, refund,

25  or exemption. A qualified applicant must notify and tender

26  payment to the office Department of Commerce within 20 days

27  after receiving a credit, refund, or exemption, other than

28  that provided in this section.

29         (g)  Any qualified applicant who fraudulently claims

30  this refund is liable for repayment of the refund to the

31  Economic Development Trust Fund plus a mandatory penalty of

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  1  200 percent of the tax refund which shall be deposited into

  2  the General Revenue Fund. Any qualified applicant who

  3  fraudulently claims this refund commits a felony of the third

  4  degree, punishable as provided in s. 775.082, s. 775.083, or

  5  s. 775.084.

  6         (h)  Funds made available pursuant to this section may

  7  not be expended in connection with the relocation of a

  8  business from one community to another community in this state

  9  unless the Office of Tourism, Trade, and Economic Development

10  determines that without such relocation the business will move

11  outside this state or determines that the business has a

12  compelling economic rationale for the relocation which creates

13  additional jobs.

14         (3)  APPLICATION PROCESS; REQUIREMENTS; AGENCY

15  DETERMINATION.--

16         (a)  To apply for certification as a qualified

17  applicant pursuant to this section, an applicant must file an

18  application with the office division which satisfies the

19  requirements of paragraphs (b) and (e), paragraphs (c) and

20  (e), or paragraphs (d) and (e). An applicant may not apply for

21  certification pursuant to this section after a proposal has

22  been submitted for a new Department of Defense contract, after

23  the applicant has made the decision to consolidate an existing

24  Department of Defense contract in this state for which such

25  applicant is seeking certification, or after the applicant has

26  made the decision to convert defense production jobs to

27  nondefense production jobs for which such applicant is seeking

28  certification.

29         (b)  Applications for certification based on the

30  consolidation of a Department of Defense contract or a new

31  Department of Defense contract must be submitted to the office

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  1  division as prescribed by the office Department of Commerce

  2  and must include, but are not limited to, the following

  3  information:

  4         1.  The applicant's federal employer identification

  5  number, the applicant's Florida sales tax registration number,

  6  and a notarized signature of an officer of the applicant.

  7         2.  The permanent location of the manufacturing,

  8  assembling, fabricating, research, development, or design

  9  facility in this state at which the project is or is to be

10  located.

11         3.  The Department of Defense contract numbers of the

12  contract to be consolidated, the new Department of Defense

13  contract number, or the "RFP" number of a proposed Department

14  of Defense contract.

15         4.  The date the contract was executed or is expected

16  to be executed, and the date the contract is due to expire or

17  is expected to expire.

18         5.  The commencement date for project operations under

19  the contract in this state.

20         6.  The number of full-time equivalent jobs in this

21  state which are or will be dedicated to the project during the

22  year and the average wage of such jobs.

23         7.  The total number of full-time equivalent employees

24  employed by the applicant in this state.

25         8.  The percentage of the applicant's gross receipts

26  derived from Department of Defense contracts during the 5

27  taxable years immediately preceding the date the application

28  is submitted.

29         9.  The amount of:

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

31  pursuant to chapter 212;

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  1         b.  Corporate income taxes paid pursuant to chapter

  2  220;

  3         c.  Intangible personal property taxes paid pursuant to

  4  chapter 199;

  5         d.  Emergency excise taxes paid pursuant to chapter

  6  221;

  7         e.  Excise taxes paid on documents pursuant to chapter

  8  201; and

  9         f.  Ad valorem taxes paid

10

11  during the 5 fiscal years immediately preceding the date of

12  the application, and the projected amounts of such taxes to be

13  due in the 3 fiscal years immediately following the date of

14  the application.

15         10.  The estimated amount of tax refunds to be claimed

16  in each fiscal year.

17         11.  A brief statement concerning the applicant's need

18  for tax refunds, and the proposed uses of such refunds by the

19  applicant.

20         12.  A resolution adopted by the county commissioners

21  of the county in which the project will be located, which

22  recommends the applicant be approved as a qualified applicant,

23  and which indicates that the necessary commitments of local

24  financial support for the applicant exist. Prior to the

25  adoption of the resolution, the county commission may review

26  the proposed public or private sources of such support and

27  determine whether the proposed sources of local financial

28  support can be provided or, for any applicant whose project is

29  located in a county designated by the Rural Economic

30  Development Initiative, a resolution adopted by the county

31  commissioners of such county requesting that the applicant's

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  1  project be exempt from the local financial support

  2  requirement.

  3         13.  Any additional information requested by the office

  4  division.

  5         (c)  Applications for certification based on the

  6  conversion of defense production jobs to nondefense production

  7  jobs must be submitted to the office division as prescribed by

  8  the office Department of Commerce and must include, but are

  9  not limited to, the following information:

10         1.  The applicant's federal employer identification

11  number, the applicant's Florida sales tax registration number,

12  and a notarized signature of an officer of the applicant.

13         2.  The permanent location of the manufacturing,

14  assembling, fabricating, research, development, or design

15  facility in this state at which the project is or is to be

16  located.

17         3.  The Department of Defense contract numbers of the

18  contract under which the defense production jobs will be

19  converted to nondefense production jobs.

20         4.  The date the contract was executed, and the date

21  the contract is due to expire or is expected to expire, or was

22  canceled.

23         5.  The commencement date for the nondefense production

24  operations in this state.

25         6.  The number of full-time equivalent jobs in this

26  state which are or will be dedicated to the nondefense

27  production project during the year and the average wage of

28  such jobs.

29         7.  The total number of full-time equivalent employees

30  employed by the applicant in this state.

31

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  1         8.  The percentage of the applicant's gross receipts

  2  derived from Department of Defense contracts during the 5

  3  taxable years immediately preceding the date the application

  4  is submitted.

  5         9.  The amount of:

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

  7  pursuant to chapter 212;

  8         b.  Corporate income taxes paid pursuant to chapter

  9  220;

10         c.  Intangible personal property taxes paid pursuant to

11  chapter 199;

12         d.  Emergency excise taxes paid pursuant to chapter

13  221;

14         e.  Excise taxes paid on documents pursuant to chapter

15  201; and

16         f.  Ad valorem taxes paid

17

18  during the 5 fiscal years immediately preceding the date of

19  the application, and the projected amounts of such taxes to be

20  due in the 3 fiscal years immediately following the date of

21  the application.

22         10.  The estimated amount of tax refunds to be claimed

23  in each fiscal year.

24         11.  A brief statement concerning the applicant's need

25  for tax refunds, and the proposed uses of such refunds by the

26  applicant.

27         12.  A resolution adopted by the county commissioners

28  of the county in which the project will be located, which

29  recommends the applicant be approved as a qualified applicant,

30  and which indicates that the necessary commitments of local

31  financial support for the applicant exist. Prior to the

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  1  adoption of the resolution, the county commission may review

  2  the proposed public or private sources of such support and

  3  determine whether the proposed sources of local financial

  4  support can be provided or, for any applicant whose project is

  5  located in a county designated by the Rural Economic

  6  Development Initiative, a resolution adopted by the county

  7  commissioners of such county requesting that the applicant's

  8  project be exempt from the local financial support

  9  requirement.

10         13.  Any additional information requested by the office

11  division.

12         (d)  Applications for certification based on a contract

13  for reuse of a defense-related facility must be submitted to

14  the office division as prescribed by the office Department of

15  Commerce and must include, but are not limited to, the

16  following information:

17         1.  The applicant's Florida sales tax registration

18  number and a notarized signature of an officer of the

19  applicant.

20         2.  The permanent location of the manufacturing,

21  assembling, fabricating, research, development, or design

22  facility in this state at which the project is or is to be

23  located.

24         3.  The business entity holding a valid Department of

25  Defense contract or branch of the Armed Forces of the United

26  States that previously occupied the facility, and the date

27  such entity last occupied the facility.

28         4.  A copy of the contract to reuse the facility, or

29  such alternative proof as may be prescribed by the office

30  department that the applicant is seeking to contract for the

31  reuse of such facility.

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  1         5.  The date the contract to reuse the facility was

  2  executed or is expected to be executed, and the date the

  3  contract is due to expire or is expected to expire.

  4         6.  The commencement date for project operations under

  5  the contract in this state.

  6         7.  The number of full-time equivalent jobs in this

  7  state which are or will be dedicated to the project during the

  8  year and the average wage of such jobs.

  9         8.  The total number of full-time equivalent employees

10  employed by the applicant in this state.

11         9.  The amount of:

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

13  pursuant to chapter 212.

14         b.  Corporate income taxes paid pursuant to chapter

15  220.

16         c.  Intangible personal property taxes paid pursuant to

17  chapter 199.

18         d.  Emergency excise taxes paid pursuant to chapter

19  221.

20         e.  Excise taxes paid on documents pursuant to chapter

21  201.

22         f.  Ad valorem taxes paid during the 5 fiscal years

23  immediately preceding the date of the application, and the

24  projected amounts of such taxes to be due in the 3 fiscal

25  years immediately following the date of the application.

26         10.  The estimated amount of tax refunds to be claimed

27  in each fiscal year.

28         11.  A brief statement concerning the applicant's need

29  for tax refunds, and the proposed uses of such refunds by the

30  applicant.

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  1         12.  A resolution adopted by the county commissioners

  2  of the county in which the project will be located, which

  3  recommends the applicant be approved as a qualified applicant,

  4  and which indicates that the necessary commitments of local

  5  financial support for the applicant exist. Prior to the

  6  adoption of the resolution, the county commission may review

  7  the proposed public or private sources of such support and

  8  determine whether the proposed sources of local financial

  9  support can be provided or, for any applicant whose project is

10  located in a county designated by the Rural Economic

11  Development Initiative, a resolution adopted by the county

12  commissioners of such county requesting that the applicant's

13  project be exempt from the local financial support

14  requirement.

15         13.  Any additional information requested by the office

16  division.

17         (e)  To qualify for review by the office division, the

18  application of an applicant must, at a minimum, establish the

19  following to the satisfaction of the office division:

20         1.  The jobs proposed to be provided under the

21  application, pursuant to subparagraph (b)6. or subparagraph

22  (c)6., must pay an estimated annual average wage equaling at

23  least 115 percent of the average wage in the area where the

24  project is to be located.

25         2.  The consolidation of a Department of Defense

26  contract must result in a net increase of at least 25 percent

27  in the number of jobs at the applicant's facilities in this

28  state or the addition of at least 80 jobs at the applicant's

29  facilities in this state.

30         3.  The conversion of defense production jobs to

31  nondefense production jobs must result in net increases in

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  1  nondefense employment at the applicant's facilities in this

  2  state.

  3         4.  The Department of Defense contract cannot allow the

  4  business to include the costs of relocation or retooling in

  5  its base as allowable costs under a cost-plus, or similar,

  6  contract.

  7         5.  A business unit of the applicant must have derived

  8  not less than 70 percent of its gross receipts in this state

  9  from Department of Defense contracts over the applicant's last

10  fiscal year, and must have derived not less than 80 percent of

11  its gross receipts in this state from Department of Defense

12  contracts over the 5 years preceding the date an application

13  is submitted pursuant to this section. This subparagraph does

14  not apply to any application for certification based on a

15  contract for reuse of a defense-related facility.

16         6.  The reuse of a defense-related facility must result

17  in the creation of at least 100 jobs at such facility.

18         (f)  Each application meeting the requirements of

19  paragraphs (b) and (e), paragraphs (c) and (e), or paragraphs

20  (d) and (e) must be submitted to the office division for a

21  determination of eligibility. The office division shall

22  review, evaluate, and score each application based on, but not

23  limited to, the following criteria:

24         1.  Expected contributions to the state strategic

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

26  taking into account the extent to which the project

27  contributes to the state's high-technology base, and the

28  long-term impact of the project and the applicant on the

29  state's economy.

30         2.  The economic benefit of the jobs created or

31  retained by the project in this state, taking into account the

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  1  cost and average wage of each job created or retained, and the

  2  potential risk to existing jobs.

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

  4  applicant in this state.

  5         4.  The local commitment and support for the project

  6  and applicant.

  7         5.  The impact of the project on the local community,

  8  taking into account the unemployment rate for the county where

  9  the project will be located.

10         6.  The dependence of the local community on the

11  defense industry.

12         7.  The impact of any tax refunds granted pursuant to

13  this section on the viability of the project and the

14  probability that the project will occur in this state if such

15  tax refunds are granted to the applicant, taking into account

16  the expected long-term commitment of the applicant to economic

17  growth and employment in this state.

18         8.  The length of the project, or the expected

19  long-term commitment to this state resulting from the project.

20         (g)  The office division shall forward its written

21  findings and evaluation on each application meeting the

22  requirements of paragraphs (b) and (e), paragraphs (c) and

23  (e), or paragraphs (d) and (e) to the director secretary

24  within 60 calendar days of receipt of a complete application.

25  The office division shall notify each applicant when its

26  application is complete, and when the 60-day period begins. In

27  its written report to the director secretary, the office

28  division shall specifically address each of the factors

29  specified in paragraph (f), and shall make a specific

30  assessment with respect to the minimum requirements

31  established in paragraph (e). The office division shall

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  1  include in its report projections of the tax refund claims

  2  that will be sought by the applicant in each fiscal year based

  3  on the information submitted in the application.

  4         (h)  Within 30 days after receipt of the office's

  5  division's findings and evaluation, the director secretary

  6  shall enter a final order that either approves or disapproves

  7  an application. The decision must be in writing and provide

  8  the justifications for either approval or disapproval. If

  9  appropriate, the director secretary shall enter into a written

10  agreement with the qualified applicant pursuant to subsection

11  (4).

12         (i)  The director secretary may not enter any final

13  order that certifies any applicant as a qualified applicant

14  when the value of tax refunds to be included in that final

15  order exceeds the available amount of authority to enter final

16  orders as determined pursuant to s. 288.095(3) aggregate

17  amount of tax refunds for all qualified applicants projected

18  by the division in any fiscal year exceeds the lesser of $25

19  million or the amount appropriated for tax refunds for that

20  fiscal year. A final order that approves an application must

21  specify the maximum amount of a tax refund that is to be

22  available to the contractor in each fiscal year and the total

23  amount of tax refunds for all fiscal years.

24         (j)  This section does not create a presumption that an

25  applicant should receive any tax refunds under this section.

26         (4)  QUALIFIED DEFENSE CONTRACTOR TAX REFUND

27  AGREEMENT.--

28         (a)  A qualified applicant shall enter into a written

29  agreement with the office department containing, but not

30  limited to, the following:

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

  2  this state that are or will be dedicated to the qualified

  3  applicant's project, the average wage of such jobs, the

  4  definitions that will apply for measuring the achievement of

  5  these terms during the pendency of the agreement, and a time

  6  schedule or plan for when such jobs will be in place and

  7  active in this state. This information must be the same as the

  8  information contained in the application submitted by the

  9  contractor pursuant to subsection (3).

10         2.  The maximum amount of a refund that the qualified

11  applicant is eligible to receive in each fiscal year.

12         3.  An agreement with the office department allowing

13  the office department to review and verify the financial and

14  personnel records of the qualified applicant to ascertain

15  whether the qualified applicant is complying with the

16  requirements of this section.

17         4.  The date after which, each fiscal year, the

18  qualified applicant may file an annual claim pursuant to

19  subsection (5).

20         5.  That local financial support shall be annually

21  available and will be paid to the Economic Development Trust

22  Fund.

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

24  agreement is a condition precedent for receipt of tax refunds

25  each year. The failure to comply with the terms and conditions

26  of the agreement shall result in the loss of eligibility for

27  receipt of all tax refunds previously authorized pursuant to

28  this section, and the revocation of the certification as a

29  qualified applicant by the director secretary.

30

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  1         (c)  The agreement shall be signed by the director

  2  secretary and the authorized officer of the qualified

  3  applicant.

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

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

  6  points:

  7

  8         "This agreement is neither a general obligation

  9         of the State of Florida, nor is it backed by

10         the full faith and credit of the State of

11         Florida. Payment of tax refunds are conditioned

12         on and subject to specific annual

13         appropriations by the Florida Legislature of

14         funds sufficient to pay amounts authorized in

15         s. 288.1045 288.104, Florida Statutes."

16

17         (5)  ANNUAL CLAIM FOR REFUND FROM A QUALIFIED DEFENSE

18  CONTRACTOR.--

19         (a)  Qualified applicants who have entered into a

20  written agreement with the office department pursuant to

21  subsection (4) and who have entered into a valid new

22  Department of Defense contract, commenced the consolidation of

23  a Department of Defense contract, commenced the conversion of

24  defense production jobs to nondefense production jobs or who

25  have entered into a valid contract for reuse of a

26  defense-related facility may apply once each fiscal year to

27  the office Department of Commerce for tax refunds. The

28  application must be made on or after the date contained in the

29  agreement entered into pursuant to subsection (4) and must

30  include a notarized signature of an officer of the applicant.

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  1         (b)  The claim for refund by the qualified applicant

  2  must include a copy of all receipts pertaining to the payment

  3  of taxes for which a refund is sought, and data related to

  4  achieving each performance item contained in the tax refund

  5  agreement pursuant to subsection (4). The amount requested as

  6  a tax refund may not exceed the amount for the fiscal year in

  7  the written agreement entered pursuant to subsection (4).

  8         (c)  A tax refund may not be approved for any qualified

  9  applicant unless local financial support has been paid to the

10  Economic Development Trust Fund in that fiscal year. If the

11  local financial support is less than 20 percent of the

12  approved tax refund, the tax refund shall be reduced. The tax

13  refund paid may not exceed 5 times the local financial support

14  received. Funding from local sources includes tax abatement

15  under s. 196.1995 provided to a qualified applicant. The

16  amount of any tax refund for an applicant approved under this

17  section shall be reduced by the amount of any such tax

18  abatement, and the limitations in subsection (2) and paragraph

19  (3)(h) shall be reduced by the amount of any such tax

20  abatement. A report listing all sources of the local financial

21  support shall be provided to the office division when such

22  support is paid to the Economic Development Trust Fund.

23         (d)  The director secretary, with assistance from the

24  office division, the Department of Revenue, and the Department

25  of Labor and Employment Security, shall determine the amount

26  of the tax refund that is authorized for the qualified

27  applicant for the fiscal year in a written final order within

28  30 days after the date the claim for the annual tax refund is

29  received by the office Department of Commerce.

30         (e)  The total amount of tax refunds approved by the

31  director secretary under this section in any fiscal year may

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  1  not exceed the amount appropriated to the Economic Development

  2  Trust Fund for such purposes for the fiscal year. If the

  3  Legislature does not appropriate an amount sufficient to

  4  satisfy projections by the office division for tax refunds in

  5  a fiscal year, the director secretary shall, not later than

  6  July 15 of such year, determine the proportion of each refund

  7  claim which shall be paid by dividing the amount appropriated

  8  for tax refunds for the fiscal year by the projected total

  9  amount of refund claims for the fiscal year. The amount of

10  each claim for a tax refund shall be multiplied by the

11  resulting quotient. If, after the payment of all such refund

12  claims, funds remain in the Economic Development Trust Fund

13  for tax refunds, the director secretary shall recalculate the

14  proportion for each refund claim and adjust the amount of each

15  claim accordingly.

16         (f)  Upon approval of the tax refund pursuant to

17  paragraphs (c) and (d), the Comptroller shall issue a warrant

18  for the amount included in the final order. In the event of

19  any appeal of the final order, the Comptroller may not issue a

20  warrant for a refund to the qualified applicant until the

21  conclusion of all appeals of the final order.

22         (g)  A prorated tax refund, less a 5 percent penalty,

23  shall be approved for a qualified applicant provided all other

24  applicable requirements have been satisfied and the applicant

25  proves to the satisfaction of the director that it has

26  achieved at least 80 percent of its projected employment.

27         (6)  ADMINISTRATION.--

28         (a)  The office may department shall adopt rules

29  pursuant to chapter 120 for the administration of this

30  section.

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  1         (b)  The office department may verify information

  2  provided in any claim submitted for tax credits under this

  3  section with regard to employment and wage levels or the

  4  payment of the taxes with the appropriate agency or authority

  5  including the Department of Revenue, the Department of Labor

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

  7         (c)  To facilitate the process of monitoring and

  8  auditing applications made under this program, the office

  9  department may provide a list of qualified applicants to the

10  Department of Revenue, the Department of Labor and Employment

11  Security, or to any local government or authority. The office

12  department may request the assistance of said entities with

13  respect to monitoring the payment of the taxes listed in

14  subsection (2).

15         (d)  By December 1 of each year, the office department

16  shall submit a complete and detailed report to the Governor,

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

18  Representatives of all tax refunds paid under this section,

19  including analyses of benefits and costs, types of projects

20  supported, employment and investment created, geographic

21  distribution of tax refunds granted, and minority business

22  participation.  The report must indicate whether the moneys

23  appropriated by the Legislature to the qualified applicant tax

24  refund program were expended in a prudent, fiducially sound

25  manner.

26         (7)  EXPIRATION.--An applicant may not be certified as

27  qualified under this section after June 30, 2003 1999.

28         Section 4.  Section 288.106, Florida Statutes, 1998

29  Supplement, is amended to read:

30         288.106  Tax refund program for qualified target

31  industry businesses.--

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

  2  Legislature finds that attracting, retaining, and providing

  3  favorable conditions for the growth of target industries

  4  provides high-quality employment opportunities for citizens of

  5  this state and enhances the economic foundations of this

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

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

  8  providing tax refunds to qualified target industry businesses

  9  that create new high-wage employment opportunities in this

10  state by expanding existing businesses within this state or by

11  bringing new businesses to this state.

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

13         (a)  "Account" means the Economic Development

14  Incentives Account within the Economic Development Trust Fund

15  established under s. 288.095.

16         (b)  "Authorized local economic development agency"

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

18  s. 288.075(1), authorized by a county or municipality to

19  promote the general business or industrial interests of that

20  county or municipality.

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

22  the statewide private sector average wage or the average of

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

24  standard metropolitan area in which the business is located.

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

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

27  Labor and Employment Security for unemployment compensation

28  purposes or a subcategory or division of an employing unit

29  which is accepted by the Department of Labor and Employment

30  Security as a reporting unit. In the event a business chooses

31  to register with the Department of Labor and Employment

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  1  Security as a statewide reporting unit, only the employees

  2  located at the physical site of the qualified target industry

  3  project shall be considered employees of the business.

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

  5  international, national, or regional headquarters office of a

  6  multinational or multistate business enterprise or national

  7  trade association, whether separate from or connected with

  8  other facilities used by such business.

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

10  and Economic Development.

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

12  an enterprise zone pursuant to s. 290.0065.

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

14  expansion of an existing Florida a business by or through

15  additions to real and personal property on a site colocated

16  with a commercial or industrial operation owned by the same

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

18  less than 10 percent at such business.

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

20  state.

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

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

23  Labor and Employment Security and the United States Department

24  of Labor for purposes of unemployment compensation tax

25  administration and employment estimation, resulting directly

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

27  temporary construction jobs involved with the construction of

28  facilities for the project or any jobs which have previously

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

30  288.104 or this section.

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

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

  3  Economic Development Trust Fund and which is equal to 20

  4  percent of the annual tax refund for a qualified target

  5  industry business. A qualified target industry business may

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

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

  8  may not include, directly or indirectly, state funds

  9  appropriated from the General Revenue Fund or any state trust

10  fund, excluding tax revenues shared with local governments

11  pursuant to law.

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

13  means the option to exercise an exemption from the local

14  financial support requirement available to any applicant whose

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

16  less, or in a county with a population of 100,000 or less

17  which is contiguous to a county with a population of 75,000 or

18  less designated by the Rural Economic Development Initiative.

19  Any applicant that exercises this option shall not be eligible

20  for more than 80 percent of the total tax refunds allowed such

21  applicant under this section.

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

23  heretofore did not exist in this state, first beginning

24  operations on a site located in this state and clearly

25  separate from any other commercial or industrial operations

26  owned by the same business.

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

28  or expansion of an existing business.

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

30  Tourism, Trade, and Economic Development.

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

  2  headquarters business or any business that is engaged in one

  3  of the target industries identified pursuant to the following

  4  criteria developed by the office in consultation with

  5  Enterprise Florida, Inc.:

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

  7  strong expectation for future growth in both employment and

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

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

10  international markets or to replacing imports.

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

12  periodic layoffs, whether due to seasonality or sensitivity to

13  volatile economic variables such as weather.  The industry

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

15  demand for products of this industry is not necessarily

16  subject to decline during an economic downturn.

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

18  wages compared to statewide or area averages.

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

20  industry businesses should not be dependent on Florida markets

21  or resources as indicated by industry analysis.

22         5.  Industrial base diversification and

23  strengthening.--The industry should contribute toward

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

25  as indicated by analysis of employment and output shares

26  compared to national and regional trends.  Special

27  consideration should be given to industries that strengthen

28  regional economies by adding value to basic products or

29  building regional industrial clusters as indicated by industry

30  analysis.

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

  2  positive impacts on or benefits to the state and regional

  3  economies.

  4

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

  6  shall develop a list of such target industries annually and

  7  submit such list as part of the final agency legislative

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

  9  industry business may not include any industry engaged in

10  retail activities; any electrical utility company; any

11  phosphate or other solid minerals severance, mining, or

12  processing operation; any oil or gas exploration or production

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

14  of Hotels and Restaurants of the Department of Business and

15  Professional Regulation.

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

17  s. 220.03(1)(z).

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

19  target industry business that has been approved by the

20  director to be eligible for tax refunds pursuant to this

21  section.

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

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

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

25  75,000 or less.

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

27  10,000 or less, or a city with a population of greater than

28  10,000 but less than 20,000 which has been determined by the

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

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

31  significant percentage of residents on public assistance, a

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  1  significant percentage of residents with income below the

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

  3  employment base in agriculture-related industries.

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

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

  6  to a qualified target industry business for the amount of

  7  eligible taxes certified by the director which were paid by

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

  9  years for each qualified target industry business must be

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

11  refund to a qualified target industry business must be

12  determined pursuant to subsection (6).

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

14  industry business shall be allowed tax refund payments equal

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

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

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

18  county or city or an enterprise zone. Further, a qualified

19  target industry business shall be allowed additional tax

20  refund payments equal to $1,000 times the number of jobs

21  specified in the tax refund agreement under subparagraph

22  (5)(a)1. if such jobs pay an annual average wage of at least

23  150 percent of the average private sector wage in the area, or

24  equal to $2,000 times the number of jobs if such jobs pay an

25  annual average wage of at least 200 percent of the average

26  private sector wage in the area. The director may approve a

27  qualified target industry business to receive tax refund

28  payments of up to $5,000 times the number of jobs specified in

29  the tax refund agreement under subparagraph (5)(a)1., or up to

30  $7,500 times the number of jobs if the project is located in

31  an enterprise zone. A qualified target industry business may

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  1  not receive refund payments of more than 25 percent of the

  2  total tax refunds specified in the tax refund agreement under

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

  4  target industry business may not receive more than $1.5

  5  million in refunds under this section in any single fiscal

  6  year, or more than $3 $2.5 million in any single fiscal year

  7  if the project is located in an enterprise zone, rural county,

  8  or rural city. A qualified target industry may not receive

  9  more than $5 million in refund payments under this section in

10  all fiscal years, or more than $10 $7.5 million if the project

11  is located in an enterprise zone, rural county, or rural city.

12  Funds made available pursuant to this section may not be

13  expended in connection with the relocation of a business from

14  one community to another community in this state unless the

15  Office of Tourism, Trade, and Economic Development determines

16  that without such relocation the business will move outside

17  this state or determines that the business has a compelling

18  economic rationale for the relocation and that the relocation

19  will create additional jobs.

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

21  subsection (5), a qualified target industry business may

22  receive refunds from the account for the following taxes due

23  and paid by that business beginning with the first taxable

24  year of the business which begins after entering into the

25  agreement:

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

27  chapter 212.

28         2.  Corporate income taxes under chapter 220.

29         3.  Intangible personal property taxes under chapter

30  199.

31         4.  Emergency excise taxes under chapter 221.

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  1         5.  Excise taxes on documents under chapter 201.

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

  3         7.  Insurance premium tax under s. 624.509.

  4

  5  However, a qualified target industry business may not receive

  6  a refund under this section for any amount of credit, refund,

  7  or exemption granted to that business for any of such taxes.

  8  If a refund for such taxes is provided by the office, which

  9  taxes are subsequently adjusted by the application of any

10  credit, refund, or exemption granted to the qualified target

11  industry business other than as provided in this section, the

12  business shall reimburse the account for the amount of that

13  credit, refund, or exemption. A qualified target industry

14  business shall notify and tender payment to the office within

15  20 days after receiving any credit, refund, or exemption other

16  than one provided in this section.

17         (d)  A qualified target industry business that

18  fraudulently claims a refund under this section:

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

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

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

22  General Revenue Fund.

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

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

25  775.084.

26         (4)  APPLICATION AND APPROVAL PROCESS.--

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

28  industry business under this section, the business must file

29  an application with the office before the business has made

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

31  the business had made the decision to expand an existing

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

  2  not limited to, the following information:

  3         1.  The applicant's federal employer identification

  4  number and the applicant's state sales tax registration

  5  number.

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

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

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

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

10  for all activities included in the project.

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

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

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

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

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

16  for each type of business activity or product.

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

18  employed by the applicant in this state.

19         6.  The anticipated commencement date of the project.

20         7.  The amount of:

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

22  under chapter 212;

23         b.  Corporate income taxes paid under chapter 220;

24         c.  Intangible personal property taxes paid under

25  chapter 199;

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

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

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

29  in each fiscal year.

30

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  1         9.  A brief statement concerning the role that the tax

  2  refunds requested will play in the decision of the applicant

  3  to locate or expand in this state.

  4         10.  An estimate of the proportion of the sales

  5  resulting from the project that will be made outside this

  6  state.

  7         11.  A resolution adopted by the governing board of the

  8  county or municipality in which the project will be located,

  9  which resolution recommends that certain types of businesses

10  be approved as a qualified target industry business and states

11  that the commitments of local financial support necessary for

12  the target industry business exist. In advance of the passage

13  of such resolution, the office may also accept an official

14  letter from an authorized local economic development agency

15  which endorses the proposed target industry project and

16  pledges that sources of local financial support for such

17  project exist. For the purpose of making pledges of local

18  financial support under this subsection, the authorized local

19  economic development agency shall be officially designated by

20  the passage of a resolution by the local governing authority.

21  Before adoption of the resolution, the governing board may

22  review the proposed public or private sources of such support

23  and determine whether the proposed sources of local financial

24  support can be provided.

25         12.  Any additional information requested by the

26  office.

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

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

29  establish the following to the satisfaction of the office:

30         1.  The jobs proposed to be provided under the

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

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  1  estimated annual average wage equaling at least 115 percent of

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

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

  4  The office may waive this average wage requirement at the

  5  request of the local governing body recommending the project

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

  7  waived for a project located in a brownfield area designated

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

  9  enterprise zone and only when the merits of the individual

10  project or the specific circumstances in the community in

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

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

13  recommendation, it must be transmitted in writing and the

14  specific justification for the waiver recommendation must be

15  explained.  If the director elects to waive the wage

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

17  reasons for granting the waiver must be explained.

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

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

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

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

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

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

24  office may approve an expansion of an existing business under

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

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

27  10 percent at the business if the merits of the individual

28  project or the specific circumstances in the community in

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

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

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

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  1  justification for the request must be explained. If the

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

  3  stated in writing and the reasons for granting the request

  4  must be explained.

  5         3.  The business activity or product for the

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

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

  8  industries that contribute to the area and to the economic

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

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

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

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

13  requests to waive the wage requirement for brownfield areas

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

15  action is not in the public interest.

16         (c)  Each application meeting the requirements of

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

18  determination of eligibility. The office shall review and

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

20  following criteria:

21         1.  Expected contributions to the state strategic

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

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

24  of the applicant on the state economy.

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

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

27  average wage of each job created.

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

29  applicant in this state.

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

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

  2  taking into account the unemployment rate for the county where

  3  the project will be located.

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

  5  this section on the viability of the project and the

  6  probability that the project will be undertaken in this state

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

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

  9  economic growth and employment in this state.

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

11  resulting from the project.

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

13  state or other states, including whether such business has

14  been subjected to criminal or civil fines and penalties.

15  Nothing in this subparagraph shall require the disclosure of

16  confidential information.

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

18  evaluation concerning each application meeting the

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

20  calendar days after receipt of a complete application. The

21  office shall notify each target industry business when its

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

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

24  office shall specifically address each of the factors

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

26  assessment with respect to the minimum requirements

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

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

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

30  the information submitted in the application.

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

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

  3  certification enter a final order that either approves or

  4  disapproves the application of the target industry business.

  5  The decision must be in writing and must provide the

  6  justifications for approval or disapproval.

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

  8  written agreement with the qualified target industry business

  9  pursuant to subsection (5).

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

11  that certifies any target industry business as a qualified

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

13  included in that letter of certification final order exceeds

14  the available amount of authority to certify new businesses

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

16  event the commitments of local financial support represent

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

18  to otherwise preserve the viability and fiscal integrity of

19  the program, the director may certify a qualified target

20  industry business to receive tax refund payments of less than

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

22  of certification final order that approves an application must

23  specify the maximum amount of tax refund that will be

24  available to the qualified industry business in each fiscal

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

26  available to the business for all fiscal years.

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

28  that an applicant will receive any tax refunds under this

29  section. However, the office may issue nonbinding opinion

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

31  applicants' eligibility and the potential amount of refunds.

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  1         (5)  TAX REFUND AGREEMENT.--

  2         (a)  Each qualified target industry business must enter

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

  4  minimum:

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

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

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

  8  measuring the achievement of these terms during the pendency

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

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

11  information must be the same as the information contained in

12  the application submitted by the business under subsection

13  (4).

14         2.  The maximum amount of tax refunds which the

15  qualified target industry business is eligible to receive on

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

17  qualified target industry business is eligible to receive in

18  each fiscal year.

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

20  and personnel records of the qualified target industry

21  business to ascertain whether that business is in compliance

22  with this section.

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

24  qualified target industry business may file an annual claim

25  under subsection (6).

26         5.  That local financial support will be annually

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

28  not enter into a written agreement with a qualified target

29  industry business if a local financial support resolution is

30  not passed by the local governing authority within 90 days

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  1  after issuance of the letter of certification pursuant to

  2  subsection (4).

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

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

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

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

  7  eligibility for receipt of all tax refunds previously

  8  authorized under this section and the revocation by the

  9  director of the certification of the business entity as a

10  qualified target industry business.

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

12  by an authorized officer of the qualified target industry

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

14  of certification entry of a final order certifying the

15  business entity as a qualified target industry business under

16  subsection (4).

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

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

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

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

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

22  refunds are conditioned on and subject to specific annual

23  appropriations by the Florida Legislature of moneys sufficient

24  to pay amounts authorized in section 288.106, Florida

25  Statutes."

26         (6)  ANNUAL CLAIM FOR REFUND.--

27         (a)  A qualified target industry business that has

28  entered into a tax refund agreement with the office under

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

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

31  date specified in that agreement.

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

  2  industry business must include a copy of all receipts

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

  4  sought and data related to achievement of each performance

  5  item specified in the tax refund agreement. The amount

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

  7  for that fiscal year in that agreement.

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

  9  target industry business unless the required local financial

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

11  the local financial support provided is less than 20 percent

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

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

14  5 times the amount of the local financial support received.

15  Further, funding from local sources includes any tax abatement

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

17  market value of municipal or county land conveyed or provided

18  at a discount to that business by any county, municipality, or

19  other public entity.; and The amount of any tax refund for

20  such business approved under this section must be reduced by

21  the amount of any such tax abatement granted or the value of

22  the land granted; and the limitations in subsection (3) and

23  paragraph (4)(f) must be reduced by the amount of any such tax

24  abatement or the value of the land granted. A report listing

25  all sources of the local financial support shall be provided

26  to the office when such support is paid to the account.

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

28  shall be approved for a qualified target industry business

29  provided all other applicable requirements have been satisfied

30  and the business proves to the satisfaction of the director

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

  2  employment.

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

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

  5  Department of Labor and Employment Security, shall specify by

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

  7  authorized for the qualified target industry business for the

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

  9  the annual tax refund is received by the office.

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

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

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

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

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

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

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

17  to the qualified target industry business until the conclusion

18  of all appeals of that order.

19         (7)  ADMINISTRATION.--

20         (a)  The office is authorized to verify information

21  provided in any claim submitted for tax credits under this

22  section with regard to employment and wage levels or the

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

24  including the Department of Revenue, the Department of Labor

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

26         (b)  To facilitate the process of monitoring and

27  auditing applications made under this program, the office may

28  provide a list of qualified target industry businesses to the

29  Department of Revenue, to the Department of Labor and

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

31  The office may request the assistance of those entities with

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  1  respect to monitoring the payment of the taxes listed in

  2  subsection (3).

  3         (c)  The office may contract with Enterprise Florida,

  4  Inc., for the administration of the program, or portions of

  5  the program, excluding the approval of applications for

  6  certification, the issuance of letters of certification, and

  7  the final authorization for the payment of tax refund claims.

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

  9         Section 5.  Paragraph (e) of subsection (1) of section

10  288.107, Florida Statutes, 1998 Supplement, is amended to

11  read:

12         288.107  Brownfield redevelopment bonus refunds.--

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

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

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

16         Section 6.  (1)  There is created the Institute on

17  Urban Policy and Commerce as a Type I Institute under the

18  Board of Regents at Florida Agricultural and Mechanical

19  University to improve the quality of life in urban communities

20  through research, teaching, and outreach activities.

21         (2)  The major purposes of the institute are to pursue

22  basic and applied research on urban policy issues confronting

23  the inner-city areas and neighborhoods in the state; to

24  influence the equitable allocation and stewardship of federal,

25  state, and local financial resources; to train a new

26  generation of civic leaders and university students interested

27  in approaches to community planning and design; to assist with

28  the planning, development, and capacity building of urban area

29  nonprofit organizations and government agencies; to develop

30  and maintain a database relating to inner-city areas; and to

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  1  support the community development efforts of inner-city areas,

  2  neighborhood-based organizations, and municipal agencies.

  3         (3)  The institute shall research and recommend

  4  strategies concerning critical issues facing the underserved

  5  population in urban communities, including, but not limited

  6  to, transportation and physical infrastructure; affordable

  7  housing; tourism and commerce; environmental restoration; job

  8  development and retention; child care; public health;

  9  life-long learning; family intervention; public safety; and

10  community relations.

11         (4)  The institute shall establish regional urban

12  centers to be located in the inner cities of St. Petersburg,

13  Tampa, Jacksonville, Orlando, West Palm Beach, Fort

14  Lauderdale, Miami, Daytona Beach, and Pensacola to assist

15  urban communities on critical economic, social, and

16  educational problems affecting the underserved population.

17         (5)  Before January 1 of each year, the institute shall

18  submit a report of its critical findings and recommendations

19  for the prior year to the President of the Senate, the Speaker

20  of the House of Representatives, and the appropriate

21  committees of the Legislature. The report shall be titled "The

22  State of Unmet Needs in Florida's Urban Communities" and shall

23  include, but is not limited to, a recommended list of

24  resources that could be made available for revitalizing urban

25  communities; significant accomplishments and activities of the

26  institute; and recommendations concerning the expansion,

27  improvement, or termination of the institute.

28         (6)  The Governor shall submit an annual report to the

29  Legislature on the unmet needs in the state's urban

30  communities.

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  1         Section 7.  Florida Economic Opportunities Incentive

  2  Fund.--

  3         (1)(a)  The Legislature finds that attracting,

  4  retaining, and providing favorable conditions for the growth

  5  of certain high-impact business facilities provides widespread

  6  economic benefits to the public through high-quality

  7  employment opportunities in such facilities and in related

  8  facilities attracted to the state, through the increased tax

  9  base provided by the high-impact facility and businesses in

10  related sectors, through an enhanced entrepreneurial climate

11  in the state and the resulting business and employment

12  opportunities, and through the stimulation and enhancement of

13  the state's universities and community colleges. In the global

14  economy, there exists serious and fierce international

15  competition for these facilities, and in most instances, when

16  all available resources for economic development have been

17  used, the state continues to encounter severe competitive

18  disadvantages in vying for these high-impact business

19  facilities.

20         (b)  The Legislature therefore declares that sufficient

21  resources shall be available to respond to extraordinary

22  economic opportunities and to compete effectively for these

23  high-impact business facilities.

24         (2)(a)  There is created within the Office of Tourism,

25  Trade, and Economic Development the Florida Economic

26  Opportunities Incentive Fund.

27         (b)  Upon the approval of the Governor, moneys may be

28  transferred to the Florida Economic Opportunities Incentive

29  Fund from the Working Capital Fund or other unappropriated

30  surplus funds, not to exceed $50 million in any one fiscal

31  year.

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  1         (3)(a)  Enterprise Florida, Inc., shall evaluate

  2  individual proposals for high-impact business facilities and

  3  forward recommendations regarding the use of moneys in the

  4  fund for such facilities to the director of the Office of

  5  Tourism, Trade, and Economic Development. Such evaluation and

  6  recommendation must include, but need not be limited to:

  7         1.  A description of the type of facility, its business

  8  operation, and the product or service associated with the

  9  facility.

10         2.  The number of full-time-equivalent jobs that will

11  be created by the facility and the total estimated average

12  annual wages of those jobs.

13         3.  The cumulative amount of investment to be dedicated

14  to the facility within a specified period.

15         4.  A statement of any special impacts the facility is

16  expected to stimulate in a particular business sector in the

17  state or regional economy or in the state's universities and

18  community colleges.

19         5.  A statement of the role the incentive is expected

20  to play in the decision of the applicant business to locate or

21  expand in this state.

22         (b)  Upon receipt of the evaluation and recommendation

23  from Enterprise Florida, Inc., the director shall recommend

24  approval or disapproval of a project for receipt of funds from

25  the Florida Economic Opportunities Incentive Fund to the

26  Governor. In recommending a high-impact business facility, the

27  director shall include proposed performance conditions that

28  the facility must meet to obtain incentive funds. The Governor

29  shall consult with the President of the Senate and the Speaker

30  of the House of Representatives before giving final approval

31  for a project.

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  1         (c)  Upon the approval of the Governor, the director of

  2  the Office of Tourism, Trade, and Economic Development and the

  3  high-impact business shall enter into a contract that sets

  4  forth the conditions for payment of moneys from the fund. The

  5  contract must include the total amount of funds awarded; the

  6  performance conditions that must be met to obtain the award,

  7  including, but not limited to, net new employment in the

  8  state, average salary, and total capital investment; the

  9  methodology for validating performance; and the schedule of

10  payments from the fund.

11         Section 8.  Response to economic emergencies in small

12  communities.--

13         (1)  The Legislature finds that attracting, retaining,

14  and providing favorable conditions for businesses which

15  contribute to the economic health of small communities through

16  the generation of business and employment opportunities is in

17  the public interest.  The Legislature recognizes that

18  conditions may exist where criteria for existing economic

19  development programs prevent some businesses from

20  participating and that existing criteria should be waived in

21  order to allow businesses which are significant employers in

22  these small communities to participate in these programs in

23  order to improve the economic health of these communities.

24  The Legislature further recognizes that the loss of an

25  industry or the inability of a significant employer to open or

26  reopen a business in a small community creates a state of

27  economic emergency within that community.

28         (2)  A community is in a state of economic emergency

29  when any of the following conditions occur:

30         (a)  Closure of a business which is a significant

31  employer of workers in the community.

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  1         (b)  Closure of a business which significantly affects

  2  the operations of other businesses which are significant

  3  employers of workers in the community.

  4         (c)  A business which would be a significant employer

  5  of workers in the community is unable to open or reopen due to

  6  a lack of economic incentives or a business environment which

  7  is not favorable to the opening or reopening of that business.

  8         (d)  The community experiences substantial unemployment

  9  due to the closure of a major industry.

10         (3)  A local government entity shall notify the

11  Governor, the Office of Tourism, Trade, and Economic

12  Development, and Enterprise Florida, Inc., when one or more of

13  the conditions specified in subsection (2) have occurred or

14  will occur if action is not taken to assist the local

15  governmental entity or the affected community.

16         (4)  Upon notification that one or more of the

17  conditions described in subsection (2) exist, the Governor or

18  his or her designee shall contact the local governmental

19  entity to determine what actions have been taken by the local

20  governmental entity or the affected community to resolve the

21  economic emergency.  The Governor has the authority to waive

22  the eligibility criteria of any program or activity

23  administered by the Office of Tourism, Trade, and Economic

24  Development, or Enterprise Florida, Inc., to provide economic

25  relief to the affected community by granting participation in

26  such programs or activities.  The Governor shall consult with

27  the President of the Senate and the Speaker of the House of

28  Representatives and shall take other action, as necessary, to

29  resolve the economic emergency in the most expedient manner

30  possible.

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  1         Section 9.  Except as otherwise provided herein, this

  2  act shall take effect October 1, 1999.

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