Senate Bill 2552

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    Florida Senate - 2000                                  SB 2552

    By Senator Hargrett





    21-1352-00

  1                      A bill to be entitled

  2         An act relating to economic development in

  3         urban communities; creating 414.224, F.S.;

  4         creating the Retention Enhancing Communities

  5         Initiative; providing for the identification of

  6         communities; requiring solicitation of

  7         proposals; providing for the selection of RECI

  8         participants by the WAGES Program State Board

  9         of Directors; providing for RECI elements;

10         requiring the Governor to designate a

11         coordinator; establishing a center for

12         community excellence; providing appropriations

13         for RECI elements; providing restrictions of

14         funds; providing for monitoring and reporting;

15         providing an extended period for certain

16         businesses to claim enterprise-zone tax

17         incentives; authorizing amendments to the

18         boundaries of an enterprise zone in a community

19         with a brownfield pilot project; providing an

20         effective date.

21

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

23

24         Section 1.  Effective upon this act becoming a law,

25  section 414.224, Florida Statutes, is created to read:

26         414.224  Retention Enhancing Communities Initiative.--

27         (1)  LEGISLATIVE INTENT.--The Legislature finds that

28  Florida has numerous distressed urban cores with high

29  proportions of residents who are former and current WAGES

30  Program participants. The Legislature further finds that the

31  existence of strong neighborhoods and communities is crucial

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  1  to reduce recidivism among former WAGES Program participants,

  2  and to create new jobs and promote job retention for current

  3  WAGES Program participants. Therefore, it is the intent of the

  4  Legislature to create a program designed to develop these

  5  communities with the help of, and for the benefit of, current

  6  and former WAGES Program participants.

  7         (2)  CREATION.--The Retention Enhancing Communities

  8  Initiative (RECI) is created to leverage federal, state, and

  9  local resources for community redevelopment initiatives that

10  promote job retention among WAGES Program participants.

11  Selected communities will identify and compete for projects

12  coordinated around the six community-enhancing elements of

13  community safety, community builders, community businesses,

14  community schools, community partnerships, and community

15  redevelopment.

16         (3) SELECTION OF RECI COMMUNITIES.--

17         (a) By July 1, 2000, the WAGES Program State Board of

18  Directors, in consultation with local WAGES coalitions, will

19  identify 14 communities in the state's seven largest counties.

20  These communities must be compact, congruent, and contiguous

21  census tracts that have the highest concentrations of

22  residents who are current or former WAGES Program

23  participants. To the maximum extent possible, these

24  communities should coincide with federal empowerment zones,

25  enterprise zones established under chapter 290, Neighborhood

26  Improvement Districts established under chapter 163, community

27  redevelopment areas established under chapter 163, and Urban

28  High Crime Areas established under chapter 212. By August 1,

29  2000, the WAGES Program State Board of Directors must contract

30  with an independent entity to certify that these 14

31  communities comply with the requirements of this section.

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  1         (b) By July 10, 2000, the WAGES Program State Board of

  2  Directors shall solicit proposals from the communities

  3  identified in paragraph (a) for participation in RECI.

  4  Proposals should be general in nature, be no more than 20

  5  pages long, and include:

  6         1. A brief plan describing how the community will

  7  coordinate and incorporate the six RECI elements into the

  8  community's redevelopment strategy;

  9         2. Specific evidence of community support from

10  community-based organizations and local government for

11  participation in RECI;

12         3. For each RECI element, identification and commitment

13  of local resources from community-based organizations, local

14  government, and others, to be leveraged by federal and state

15  resources;

16         4.  Identification of the specific entity or person

17  responsible for coordinating the community's participation in

18  RECI; and

19         5.  Identification of local administrative entities.

20         (c) Based on proposal evaluation criteria developed by

21  the WAGES Program State Board of Directors, the board shall,

22  by October 1, 2000, select up to nine communities to

23  participate in RECI, and notify each community of such

24  selection. All RECI projects must be fully operational by

25  January 1, 2001, and must be completed by December 31, 2002.

26         (4) RECI ELEMENTS.--Once a community is selected as a

27  RECI participant, it may compete for awards in each RECI

28  element. Awards will be granted by the WAGES Program State

29  Board of Directors and will be based on a project plan that

30  must be consistent with the community's proposal describing

31  the coordination and incorporation of the RECI elements. The

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  1  WAGES Program State Board of Directors shall develop

  2  guidelines and criteria for the application and award of the

  3  funds. Criteria must provide additional weight for criteria

  4  relating to community involvement, business involvement, and

  5  local contributions. Unless otherwise provided for, the board

  6  or its designated agents shall administer the award of funds

  7  for each RECI element and must provide assurances that

  8  projects are completed pursuant to project plans. RECI

  9  elements include the following:

10         (a) WAGES Community Safety.--Funds may be awarded for

11  projects that increase the safety and reduce crime in RECI

12  communities. Funds may be used to train and employ WAGES

13  Program participants in public safety jobs; establish security

14  businesses and services; train residents in safety practices

15  and organize safety networks; improve lighting, alarms, and

16  law enforcement equipment; improve the safety of homes,

17  buildings, and streets; and provide community police. Local

18  law enforcement agencies must be a contributing partner in

19  safety projects. The Department of Community Affairs and the

20  Florida Department of Law Enforcement shall assign a

21  representative of their departments to assist these

22  communities with public safety issues and, notwithstanding any

23  other provision in law, may award public safety grants to

24  these communities.

25         (b) WAGES Community Builders.--Funds may be awarded for

26  small community clean-up and enhancement projects that quickly

27  create visible improvements and for planning and

28  implementation of larger neighborhood revitalization and

29  economic development initiatives.

30         1. Funds for the WAGES Community Builders element may

31  be awarded for small community clean-up and enhancement

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  1  projects. Projects must include WAGES Program participants,

  2  must last less than 3 weeks, and must be endorsed by the local

  3  unit of government. Funding may not exceed $5,000 per project

  4  without a waiver from the WAGES Program State Board of

  5  Directors. The board shall enlist the Department of State's

  6  Main Street program, Keep Florida Beautiful, Inc., and, when

  7  approved by the Governor, the Florida National Guard, to

  8  advise and assist with these projects and to redirect

  9  resources to these communities.

10         2. Funds for the WAGES Community Builders element may

11  be awarded for the planning and implementation of large

12  neighborhood revitalization or economic development

13  initiatives. Funding for planning projects may not exceed

14  $200,000, and may not, in total, exceed 20 percent of the

15  funds available for this element. Funding for implementation

16  projects may not in total exceed 20 percent of the funds

17  available for this element and must primarily leverage

18  federal, state, local, private, or foundation resources other

19  than those provided for in this section. Planning and

20  implementation projects shall employ WAGES Program

21  participants from the RECI community to the greatest extent

22  possible.

23         (c) WAGES Community Businesses.--Funds may be awarded

24  for small business-development projects, including

25  national-franchise attraction efforts, microloans, guaranteed

26  commercial loans, technical assistance, self-employment, and

27  business incubators at educational institutions. At least 95

28  percent of funds awarded for these projects must be for the

29  benefit of WAGES Program participants in RECI communities. The

30  WAGES Program State Board of Directors shall work with the

31  Comptroller to target the linked-deposit program under s.

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  1  290.0075 into these communities, and the Comptroller shall, to

  2  the greatest extent he or she deems practical, implement that

  3  program in RECI communities. Using funds appropriated for this

  4  element, the WAGES Program State Board of Directors, or its

  5  designated agent, shall establish a $10-million loan-loss

  6  reserve to encourage and guarantee commercial loans made under

  7  this element, and shall develop a tax-free bond fund to

  8  provide and expand the secondary loan market for commercial

  9  loans made in RECI communities. The WAGES Program State Board

10  of Directors, or its designated agent, shall approach and

11  propose joint ventures with national franchisers committing to

12  train individuals for and partially underwrite new franchise

13  ventures in RECI communities.

14         (d) WAGES Community Schools.--Funds may be awarded for

15  WAGES Community School projects that upgrade schools through

16  construction, repair, or renovation, or which provide training

17  and employment to WAGES Program participants to assist with

18  transportation, school services, and security. Schools

19  accepting this assistance must offer before, after, and summer

20  school programs for students who are WAGES Program

21  participants.

22         (e) WAGES Community Partnerships.--Funds may be awarded

23  for WAGES Community Partnership projects to make payments of

24  tax credits to businesses that contribute to projects in RECI

25  communities which are eligible under the community

26  contribution tax credit program under ss. 220.183 and

27  624.5105. Business contributions must benefit WAGES Program

28  participants in these communities. Funds may equal 30 percent

29  of the business's contribution and may apply to contributions

30  of any size if adequate funds are available in this RECI

31  element. The Office of Tourism, Trade, and Economic

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  1  Development and the Department of Revenue shall assist the

  2  WAGES Program State Board of Directors in administering such

  3  tax credits. Projects may also match, up to a

  4  dollar-for-dollar level, any foundation awards to RECI

  5  communities which will improve job retention and reduce public

  6  assistance dependency as determined by the WAGES Program State

  7  Board of Directors.

  8         (f) WAGES Community Redevelopment.--Funds may be

  9  awarded for WAGES Community Redevelopment projects to

10  facilitate the planning, preparing, marketing, and financing

11  of residential, mixed-use, and commercial development

12  projects, as well as residential and business infrastructure

13  redevelopment projects in RECI communities. Projects that

14  would mainly result in gentrification of the community, that

15  would not employ a preponderance of WAGES Program

16  participants, and that predominately create residences or

17  business sites that are beyond the anticipated income level of

18  working WAGES Program participants are not eligible.

19         1. The Office of Tourism, Trade, and Economic

20  Development shall be the administrator of projects under this

21  paragraph and shall develop criteria for the award of the

22  funds. Funds available under this element must be leveraged

23  with federal, state, and local resources, including, but not

24  limited to, those available through the local unit of

25  government under the Community Development Block Grant,

26  section 108 loan guarantee program, and through state agencies

27  including the Department of Community Affairs, the Department

28  of Environmental Protection, and the Florida Housing Finance

29  Corporation.

30         2. A redevelopment finance review team including the

31  WAGES Program State Board of Directors, the Office of Tourism,

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  1  Trade, and Economic Development, Enterprise Florida, Inc., the

  2  appropriate local WAGES coalition, the appropriate local unit

  3  of government, the Department of Community Affairs, the

  4  Department of Environmental Protection, and the Florida

  5  Housing Finance Corporation shall review all project plans and

  6  coordinate available resources, matching expenditures to

  7  eligible and available revenues that may be invested in the

  8  project. The team shall seek federal funding assistance in

  9  these projects and may identify and recommend projects for

10  award under the WAGES Targeted Employment and WAGES

11  transportation projects established by law. The team shall

12  recommend appropriate projects to the State Board of

13  Administration for public investment. Their collaborative

14  project package shall constitute a recommended public

15  financing commitment that shall serve to induce private

16  developers to finance the remaining costs of the project.

17  Notwithstanding the provisions of s. 216.301, funds

18  appropriated for the purpose of this paragraph shall not be

19  subject to reversion.

20         3. The Office of Tourism, Trade, and Economic

21  Development, based upon the recommendation from the team, may

22  award project funds to RECI communities for up to 30 percent

23  of the total project cost. In awarding funds, the office shall

24  consider factors including, but not limited to, the project's

25  direct employment of WAGES Program participants in planning,

26  development, or construction; eventual direct employment of

27  WAGES Program participants; residences or businesses to be

28  owned by WAGES Program participants; impact on retention in

29  employment of WAGES Program participants; impact on lowering

30  recidivism and dependency on public assistance programs;

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  1  demonstrated local public and private commitment; and the

  2  potential to enhance and upgrade the community.

  3         4. To facilitate timely response and induce the

  4  development of site opportunities where a community-based or

  5  private-sector partner exists, the Office of Tourism, Trade,

  6  and Economic Development may award funds for infrastructure

  7  feasibility studies, design and engineering activities,

  8  project development and packaging, or other infrastructure

  9  planning and preparation activities. Such funds may not exceed

10  $300,000 per project, and may not exceed 5 percent of the

11  total funding available under this paragraph.

12         5. The Office of Tourism, Trade, and Economic

13  Development shall pursue execution of a memorandum of

14  agreement with the Department of Housing and Urban Development

15  and other federal or state partners under which state funds

16  available through this element may be advanced, in excess of

17  the prescribed state share, for a project that has received

18  from the department or partner a preliminary determination of

19  eligibility for financial support. State funds in excess of

20  the prescribed state share which are advanced pursuant to this

21  paragraph and a memorandum of agreement shall be reimbursed

22  when funds are awarded under an application for other

23  financing.

24         6. To facilitate development of prospective sites, the

25  Office of Tourism, Trade, and Economic Development may award

26  funds for surveys, feasibility studies, project development,

27  packaging, marketing, and other activities related to the

28  identification, marketing, and preparation of sites of up to

29  $150,000. Such funds shall require a match from local sources

30  of 33 percent and the total grants awarded under this

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  1  subparagraph shall not exceed 5 percent of the total funding

  2  available under this paragraph.

  3         (5) The Governor shall name by July 15, 2000, a

  4  coordinator in the Office of Urban Opportunity with the

  5  authority, established by executive order, to work with the

  6  WAGES Program State Board of Directors to direct agency

  7  assistance, solve problems, and commit resources to RECI

  8  communities.

  9         (6) By August 15, 2000, working with the Workforce

10  Development Board, the WAGES Program State Board of Directors

11  shall establish a center for community excellence, affiliated

12  with an educational institution or group of educational

13  institutions, which will provide research, consulting,

14  technical assistance, capacity building, training, and program

15  assistance services to RECI communities.

16         (7) FUNDING.--

17         (a)  To implement the provisions of this section, the

18  Department of Children and Family Services may spend up to $50

19  million from Temporary Assistance for Needy Families (TANF)

20  Block Grant funds pursuant to criteria adopted by the WAGES

21  Program State Board of Directors.

22         (b) Any expenditure from the Temporary Assistance for

23  Needy Families block grant shall be expended in accordance

24  with the requirements and limitations of Title IV of the

25  Social Security Act, as amended, or any other applicable

26  federal requirement or limitation in law. Prior to any

27  expenditure of such funds, the WAGES Program State Board of

28  Directors and the Secretary of Children and Family Services,

29  or his or her designee, shall certify that controls are in

30  place to ensure that such funds are expended and reported in

31  accordance with the requirements and limitations of federal

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  1  law. It shall be the responsibility of any entity to which

  2  funds are awarded to obtain the required certification prior

  3  to any expenditure of funds.

  4         (c) Unexpended proceeds derived from a project

  5  completed with the use of program funds, beyond the operating

  6  costs and debt service, shall be restricted to further

  7  expenditures within the element. Use of such unexpended

  8  proceeds for purposes other than those authorized by this act

  9  is prohibited.

10         (d) No more than 5 percent of the funds available under

11  this section may be used by the board or its designated agents

12  to administer and monitor the awards.

13         (e) Funds authorized under this section must augment

14  the existing efforts or resources of local communities rather

15  than offset or supplant them.

16         (8) The Governor shall notify the President of the

17  United States and the Florida Congressional Delegation of any

18  delays by the federal government affecting the prompt

19  implementation of this section, and enlist their assistance in

20  resolution of such delays. By budget amendment, the Governor

21  shall identify and transfer funds to continue this initiative

22  on schedule, notwithstanding federal delays. With the

23  assistance of the Secretary of Children and Family Services

24  and the Attorney General, the Governor shall then explore

25  administrative and judicial options to gain reimbursement.

26         (9) MONITORING AND REPORTING.--

27         (a) The independent entity selected by the WAGES

28  Program State Board of Directors to certify compliance by the

29  14 communities identified under paragraph (2)(a) shall also

30  identify four other similar communities to serve as a control

31  group for RECI. The entity must measure performance trends in

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  1  the control group communities, the communities that applied

  2  for RECI designation but were not selected, and the

  3  communities selected to participate in RECI. The four control

  4  communities shall be known only to the entity until the

  5  completion of the initiative. The entity shall develop,

  6  working with the Office of Program Policy Analysis and

  7  Government Accountability and the WAGES Program State Board of

  8  Directors, criteria by October 1, 2000, to measure the impact

  9  of the initiative. Such criteria must include the total

10  revenues generated and invested in RECI communities, and the

11  amount of revenue saved from the retention of WAGES Program

12  participants.

13         (b) In addition to a comprehensive final report due

14  February 15, 2003, the WAGES Program State Board of Directors

15  must report to the Governor and Legislature every 6 months

16  beginning January 1, 2001, on the progress of RECI. Reports

17  must include tangible impacts of the initiative. The final

18  report shall include recommendations relating to the potential

19  development of a RECI program for communities in mid-sized

20  counties. The report must additionally recognize the three

21  most successful RECI communities and designate these

22  communities Florida's "come-back communities."

23         Section 2.  Notwithstanding the time limitations

24  contained in chapters 212 and 220, Florida Statutes, relating

25  to enterprise-zone tax incentives, a business that was

26  purchased in February 1992 within an area of Tampa that

27  received a designation as an enterprise zone under section

28  290.0065, Florida Statutes, effective July 1, 1995, and that

29  was eligible to receive enterprise-zone tax incentives from

30  July 1, 1995, to July 1, 1998, must submit an application for

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  1  the tax incentives by December 1, 2000. All other requirements

  2  of the enterprise zone program apply to such a business.

  3         Section 3.  Notwithstanding any provision of law to the

  4  contrary, the governing body of a municipality or a county

  5  containing a U.S. Environmental Protection Agency brownfield

  6  pilot project that was designated as of May 1, 1997, may apply

  7  to the Office of Tourism, Trade, and Economic Development

  8  before December 31, 2000, to amend the boundaries of an

  9  enterprise zone designated in a municipality or a county

10  containing such brownfield pilot project. The office shall

11  approve the application to amend the boundaries of the

12  enterprise zone if the added area does not increase the

13  overall size of the expanded zone more than its original size

14  or 20 square miles, whichever is larger.

15         Section 4.  This act shall take effect upon becoming a

16  law.

17

18            *****************************************

19                          SENATE SUMMARY

20    Creates the Retention Enhancing Communities Initiative to
      allow selected communities to compete for community
21    redevelopment funds. Allows a business that is located in
      a Tampa enterprise zone, and that meets specified
22    conditions, to apply for enterprise zone tax incentives
      dating back to July 1, 1995, if it applies by December 1,
23    2000. Allows for the amendment of the boundaries of an
      enterprise zone in a community that has received
24    designation as a U.S. Environmental Protection Agency
      brownfield pilot project as of May 1, 1997.
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