Senate Bill 1668c1
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Florida Senate - 2000 CS for SB 1668
By the Committee on Commerce and Economic Opportunities; and
Senator Kirkpatrick
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1 A bill to be entitled
2 An act relating to economic development;
3 amending s. 163.3164, F.S.; exempting certain
4 activities from the term "development" for the
5 purposes of the Local Government Comprehensive
6 Planning and Land Development Regulation Act;
7 amending s. 290.004, F.S.; defining the term
8 "rural enterprise zone"; creating s. 290.00676,
9 F.S.; authorizing the Office of Tourism, Trade,
10 and Economic Development to amend the
11 boundaries of a rural enterprise zone and
12 providing requirements with respect thereto;
13 creating s. 290.00677, F.S.; modifying the
14 employee residency requirements for the
15 enterprise zone job credit against the sales
16 tax and corporate income tax if the business is
17 located in a rural enterprise zone; modifying
18 the employee residency requirements for maximum
19 exemptions or credits with respect to the sales
20 tax credits for enterprise zone job creation,
21 for building materials used in the
22 rehabilitation of real property in an
23 enterprise zone, for business property used in
24 an enterprise zone, and for electrical energy
25 used in an enterprise zone, and the corporate
26 income tax enterprise zone job creation and
27 property tax credits if the business is located
28 in a rural enterprise zone; providing
29 application time limitations; providing an
30 extended application period for certain
31 businesses to claim tax incentives; creating s.
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Florida Senate - 2000 CS for SB 1668
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1 290.00694, F.S.; authorizing the Office of
2 Tourism, Trade, and Economic Development to
3 designate rural champion communities as
4 enterprise zones; providing requirements with
5 respect thereto; amending s. 290.046, F.S.,
6 increasing the number of economic development
7 grants that an eligible local government may
8 receive under the Florida Small Cities
9 Community Development Block Grant Program;
10 authorizing certain businesses to earn
11 additional premium tax credits under the
12 Certified Capital Company Act; specifying
13 conditions governing the receipt of such
14 additional tax credits; providing an effective
15 date.
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17 Be It Enacted by the Legislature of the State of Florida:
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19 Section 1. Subsection (6) of section 163.3164, Florida
20 Statutes, is amended to read:
21 163.3164 Definitions.--As used in this act:
22 (6) "Development" has the meaning given it in s.
23 380.04 and the exemptions given it in s. 380.04(3).
24 Section 2. Present subsections (8) and (9) of section
25 290.004, Florida Statutes, are redesignated as subsections (9)
26 and (10), respectively, and a new subsection (8) is added to
27 that section to read:
28 290.004 Definitions.--As used in ss. 290.001-290.016:
29 (8) "Rural enterprise zone" means an enterprise zone
30 that is nominated by a county having a population of 75,000 or
31 fewer, or a county having a population of 100,000 or fewer
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Florida Senate - 2000 CS for SB 1668
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1 which is contiguous to a county having a population of 75,000
2 or fewer, or by a municipality in such a county, or by such a
3 county and one or more municipalities. An enterprise zone
4 designated in accordance with s. 370.28 shall be considered a
5 rural enterprise zone.
6 Section 3. Section 290.00676, Florida Statutes, is
7 created to read:
8 290.00676 Amendment of rural enterprise zone
9 boundaries.--Notwithstanding any other provision of law, the
10 Office of Tourism, Trade, and Economic Development may amend
11 the boundaries of a rural enterprise zone. For purposes of
12 boundary amendments, an enterprise zone designated under s.
13 370.28 shall be considered a rural enterprise zone and is
14 eligible for amendment of its boundaries. Boundary amendments
15 authorized by this section are subject to the following
16 requirements:
17 (1) The amendment may increase the size of the rural
18 enterprise zone to 15 square miles.
19 (2) The amendment may increase the number of
20 noncontiguous areas by one, if that noncontiguous area has
21 zero population. For purposes of this subsection, the
22 pervasive poverty criteria may be set aside for the addition
23 of a noncontiguous parcel.
24 (3) The local enterprise zone development agency must
25 request the amendment prior to December 30, 2000. The request
26 must contain maps and sufficient information to allow the
27 office to determine the number of noncontiguous areas and the
28 total size of the rural enterprise zone.
29 Section 4. Section 290.00677, Florida Statutes, is
30 created to read:
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1 290.00677 Rural enterprise zones; special
2 qualifications.--
3 (1) Notwithstanding the enterprise zone residency
4 requirements set out in ss. 212.096(1)(c) and 220.03(1)(q),
5 businesses located in rural enterprise zones may receive the
6 credit provided under s. 212.096 or s. 220.181 for hiring any
7 person within the jurisdiction of a rural county, as defined
8 by s. 288.106(2)(r). All other provisions of ss. 212.096,
9 220.03(1)(q), and 220.181 apply to such businesses.
10 (2) Notwithstanding the requirement specified in ss.
11 212.08(5)(g)5., (5)(h)5., and (15)(a), 212.096(2)(b)1.,
12 220.181(1)(a)1., and 220.182(1)(b) that no less than 20
13 percent of a business's employees, excluding temporary and
14 part-time employees, must be residents of an enterprise zone
15 for the business to qualify for the maximum exemption or
16 credit provided in ss. 212.08(5)(g) and (h) and (15),
17 212.096(2)(b)1., 220.181(1)(a)1., and 220.182, a business that
18 is located in a rural enterprise zone shall be qualified for
19 those maximum exemptions or credits if no less than 20 percent
20 of such employees of the business are residents of a rural
21 county, as defined by s. 288.106(2)(r). All other provisions
22 of ss. 212.08(5)(g) and (h) and (15), 212.096, 220.181, and
23 220.182 apply to such business.
24 (3) Notwithstanding the time limitations contained in
25 chapters 212 and 220, a business eligible to receive tax
26 credits under this section from January 1, 2000, to June 1,
27 2000, must submit an application for the tax credits by
28 December 1, 2000. All other requirements of the enterprise
29 zone program apply to such a business.
30 Section 5. Section 290.00694, Florida Statutes, is
31 created to read:
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1 290.00694 Enterprise zone designation for rural
2 champion communities.--An area designated as a rural champion
3 community pursuant to the Taxpayer Relief Act of 1997 may
4 apply to the Office of Tourism, Trade, and Economic
5 Development for designation as an enterprise zone. The
6 application must be submitted by December 31, 2000, and must
7 comply with the requirements of s. 290.0055. Notwithstanding
8 the provisions of s. 290.0065 limiting the total number of
9 enterprise zones designated and the number of enterprise zones
10 within a population category, the Office of Tourism, Trade,
11 and Economic Development may designate enterprise zones under
12 this section. The Office of Tourism, Trade, and Economic
13 Development shall establish the initial effective date of the
14 enterprise zones designated pursuant to this section.
15 Section 6. Subsection (2) of section 290.046, Florida
16 Statutes, is amended to read:
17 290.046 Applications for grants; procedures;
18 requirements.--
19 (2)(a) Except as provided in paragraph (c), each
20 eligible local government may submit an application for a
21 grant under either the housing program category or the
22 neighborhood revitalization program category during each
23 annual funding cycle. An applicant may not receive more than
24 one grant in any state fiscal year from any of the following
25 categories: housing, neighborhood revitalization, or
26 commercial revitalization.
27 (b) Except as provided in paragraph (c), each eligible
28 local government may apply up to three times in any one annual
29 funding cycle for a grant under the economic development
30 program category but shall receive no more than two one such
31 grants grant per annual funding cycle. Applications for
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1 grants under the economic development program category may be
2 submitted at any time during the annual funding cycle, and
3 such grants shall be awarded no less frequently than three
4 times per funding cycle. The department shall establish
5 minimum criteria pertaining to the number of jobs created for
6 persons of low or moderate income, the degree of private
7 sector financial commitment, and the economic feasibility of
8 the proposed project and shall establish any other criteria
9 the department deems appropriate. Assistance to a private,
10 for-profit business may not be provided from a grant award
11 unless sufficient evidence exists to demonstrate that without
12 such public assistance the creation or retention of such jobs
13 would not occur.
14 (c)1. Local governments with an open housing,
15 neighborhood revitalization, or commercial revitalization
16 contract shall not be eligible to apply for another housing,
17 neighborhood revitalization, or commercial revitalization
18 grant until administrative closeout of their existing
19 contract. The department shall notify a local government of
20 administrative closeout or of any outstanding closeout issues
21 within 45 days of receipt of a closeout package from the local
22 government. Local governments with an open housing,
23 neighborhood revitalization, or commercial revitalization
24 community development block grant contract whose activities
25 are on schedule in accordance with the expenditure rates and
26 accomplishments described in the contract may apply for an
27 economic development grant, which grant is in addition to the
28 two economic development grants authorized under paragraph
29 (b).
30 2. Local governments with an open economic development
31 community development block grant contract whose activities
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1 are on schedule in accordance with the expenditure rates and
2 accomplishments described in the contract may apply for a
3 housing or neighborhood revitalization and a commercial
4 revitalization community development block grant. Local
5 governments with an open economic development contract whose
6 activities are on schedule in accordance with the expenditure
7 rates and accomplishments described in the contract may
8 receive no more than one additional economic development grant
9 in each fiscal year.
10 (d) Beginning October 1, 1988, the department shall
11 award no grant until the department has determined, based upon
12 a site visit, that the proposed area matches and adheres to
13 the written description contained within the applicant's
14 request. If, based upon review of the application or a site
15 visit, the department determines that any information provided
16 in the application which affects eligibility or scoring has
17 been misrepresented, the applicant's request shall be rejected
18 by the department pursuant to s. 290.0475(7). Mathematical
19 errors in applications which may be discovered and corrected
20 by readily computing available numbers or formulas provided in
21 the application shall not be a basis for such rejection.
22 Section 7. Notwithstanding the limitations set forth
23 in section 288.99(7), Florida Statutes, insurance companies
24 that earned premium tax credits as certified investors under
25 section 288.99, Florida Statutes, during 1999 may earn, by
26 investing an additional amount of certified capital in a
27 Florida certified capital company on or before December 31,
28 2000, an additional vested credit against premium tax
29 liability equal to 100 percent of such additional amount of
30 certified capital invested by the certified investor. No
31 certified investor, however, is entitled to earn an additional
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1 credit under this section that exceeds an amount equal to the
2 difference between the amount of premium tax credits requested
3 on behalf of such certified investor under section
4 288.99(7)(c), Florida Statutes, on or before March 15, 1999,
5 and the amount of certified capital invested by such certified
6 investor in 1999. For purposes of the additional certified
7 capital invested and premium tax credits earned under this
8 section and the certified investors who invest such capital
9 and certified capital companies that receive such investments,
10 the provisions of section 288.99, Florida Statutes, other than
11 section 288.99(7), Florida Statutes, shall apply without
12 changes, except that, with respect to such additional
13 certified capital only, the dates listed in section
14 288.99(5)(a)1.-4., Florida Statutes, will be December 31,
15 2001, December 31, 2002, December 31, 2003, and December 31,
16 2004, respectively. These additional funds must be invested in
17 qualified businesses located in a designated Front Porch
18 Florida community; enterprise zone; urban high-crime area
19 under section 212.097, Florida Statutes; rural job tax credit
20 county under section 212.098, Florida Statutes; or nationally
21 recognized historic district.
22 Section 8. This act shall take effect upon becoming a
23 law.
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Florida Senate - 2000 CS for SB 1668
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 SB 1668
3
4 This committee substitute differs substantially from Senate
Bill 1668 in that it:
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Revises the term "development" for purposes of the Local
6 Government Comprehensive Planning and Land Development
Regulation Act to specify that the term is given certain
7 exemptions contained in s. 380.04(3), F.S.
8 Provides a definition of the term "rural enterprise zone," to
include an enterprise zone within a county with a population
9 of 75,000 or fewer persons, or a county with a population of
100,000 or fewer persons that is contiguous to a county with a
10 population of 75,000 or fewer persons. An enterprise zone
relating to communities affected by the fishing net
11 limitations would be considered a rural enterprise zone as
well.
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Provides rural enterprise zones with an opportunity to amend
13 their zone boundaries. The boundary amendment may increase the
size of the zone to 15 square miles and may include one
14 additional noncontiguous area.
15 Allows businesses in rural enterprise zones to apply for jobs
tax credits for new hires for county residents (not just zone
16 residents). In addition, businesses in the rural enterprise
zones would be able to count rural county residents in
17 calculating the 20 percent enhancement clause (rather than
just zone residents) for enterprise zone tax incentives. Under
18 this provision, a business could claim the maximum amount of
certain tax exemptions or credits if no less than 20 percent
19 of employees are residents of a rural county.
20 Provides that eight "Rural Champion Communities" would be able
to apply for a state rural enterprise zone designation. The
21 "Rural Champion Community" designation is made under federal
law.
22
Increases the number of economic development grants that an
23 eligible local government may receive in one fiscal year under
the Florida Small Cities Community Development Block Grant
24 Program. Currently, such governments may receive one economic
development grant (plus one additional economic development
25 grant under certain conditions). This committee substitute
would allow such governments to receive two economic
26 development grants (plus one additional economic development
grant under certain conditions).
27
Allows some insurance companies to make additional investments
28 in certified capital companies (CAPCOs) under the Certified
Capital Company Act and thereby receive additional tax credits
29 for these investments. The credits could not exceed the
difference between what the insurance company originally
30 pledged to invest and what it actually invested during 1999.
In addition, all new funds are to be invested by the CAPCOs in
31 businesses that are located in the following areas:
designated, distressed rural areas; Front Porch Florida
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1 Communities; enterprise zones; urban high-crime areas; or
historic districts.
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Provides that the act shall take effect upon becoming a law.
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