Senate Bill sb1216c1
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Florida Senate - 2001 CS for SB 1216
By the Committee on Commerce and Economic Opportunities
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1 A bill to be entitled
2 An act relating to economic development;
3 amending s. 212.08, F.S.; revising certain
4 procedures and conditions relating to the sales
5 tax exemption for enterprise-zone building
6 materials and business property; extending the
7 community contribution tax credit provisions of
8 the enterprise zone program to the state sales
9 tax; amending s. 212.096, F.S.; redefining the
10 terms "eligible business" and "new employee";
11 defining the terms "jobs" and "new job has been
12 created"; revising the computation procedures
13 of the enterprise-zone jobs credit against
14 sales tax; amending s. 212.098, F.S.;
15 redefining the term "eligible business";
16 qualifying certain communities within a rural
17 area of economic critical concern to
18 participate in the rural job tax credit
19 program; providing for reduction or waiver of
20 certain financial match requirements in rural
21 areas by Rural Economic Development Initiative
22 agencies and organizations; amending s. 220.03,
23 F.S.; redefining the terms "new employee" and
24 "project"; defining the terms "new job has been
25 created" and "jobs"; amending s. 220.181, F.S.;
26 revising the computation procedures of the
27 enterprise-zone job credit against the
28 corporate income tax; amending s. 220.183,
29 F.S.; revising the eligibility, application,
30 and administrative requirements of the
31 community contribution corporate income tax
1
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1 credit program; increasing the limitation on
2 annual credits; amending s. 288.018, F.S.;
3 revising administration and uses of the
4 Regional Rural Development Grants Program;
5 creating s. 288.019, F.S.; providing for a
6 review and evaluation process of rural grants
7 by Rural Economic Development Initiative
8 agencies; amending s. 288.065, F.S.; expanding
9 the scope of the Rural Community Revolving Loan
10 Fund Program; amending s. 288.0656, F.S.;
11 revising the membership of the Rural Economic
12 Development Initiative; requiring an annual
13 designation of staff representatives; amending
14 s. 288.1088, F.S.; expanding eligible uses of
15 the Quick Action Closing Fund; amending s.
16 288.9015, F.S.; revising the responsibilities
17 of Enterprise Florida, Inc., relating to rural
18 and distressed urban communities; directing
19 Enterprise Florida, Inc., to develop a plan for
20 marketing programs and initiatives designed to
21 enhance conditions in economically distressed
22 communities; specifying components of such
23 plan; requiring development of and reporting on
24 performance measures; requiring coordination
25 with agencies and organizations; directing
26 Enterprise Florida, Inc., to combine and
27 leverage the use of certain programs to benefit
28 economically distressed communities; amending
29 s. 290.004, F.S.; defining the term "rural
30 enterprise zone"; amending s. 290.0065, F.S.;
31 providing for certain rural enterprise zones;
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1 conforming agency references to changes in
2 program administration; authorizing the Office
3 of Tourism, Trade, and Economic Development in
4 consultation with Enterprise Florida, Inc., to
5 develop guidelines relating to the designation
6 of enterprise zones; eliminating certain
7 authority for the office to change enterprise
8 zone boundaries; providing for municipalities
9 in certain counties to change the boundaries of
10 enterprise zones; amending s. 290.0066, F.S.;
11 prescribing circumstances under which
12 designation of an enterprise zone must be
13 revoked; creating s. 290.00676, F.S.;
14 authorizing the Office of Tourism, Trade, and
15 Economic Development to amend the boundaries of
16 a rural enterprise zone and providing
17 requirements with respect thereto; creating s.
18 290.00677, F.S.; modifying the employee
19 residency requirements for the enterprise-zone
20 job credit against the sales tax and corporate
21 income tax if the business is located in a
22 rural enterprise zone; creating s. 290.00694,
23 F.S.; authorizing the Office of Tourism, Trade,
24 and Economic Development to designate rural
25 champion communities as enterprise zones;
26 providing requirements with respect thereto;
27 providing for designation of a specified area
28 within Hillsborough County as an enterprise
29 zone; amending s. 290.007, F.S.; revising the
30 list of enterprise zone incentives to reflect
31 the creation of a community contribution sales
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1 tax credit program; amending s. 290.015, F.S.;
2 transferring responsibility for creating the
3 research design for review of the Enterprise
4 Zone Act to Enterprise Florida, Inc.; providing
5 for review of enterprise zones by the Auditor
6 General and a recommendation of zones the
7 designation of which should be revoked;
8 amending s. 290.048, F.S.; authorizing the
9 Department of Community Affairs to establish
10 advisory committees and solicit participation
11 related to the department's administration of
12 the Small Cities Community Development Block
13 Grant Loan Guarantee Program; repealing s.
14 290.049, F.S., which provides for the creation
15 of the Community Development Block Grant
16 Advisory Council; repealing s. 370.28(4), F.S.,
17 which provides conditions for tax incentives in
18 enterprise zone net-ban communities; amending
19 s. 420.503, F.S.; revising the definitions of
20 the terms "elderly" and "housing for the
21 elderly" under the Florida Housing Finance Act;
22 amending s. 420.507, F.S.; authorizing the
23 Florida Housing Finance Corporation to create a
24 recognition program to support affordable
25 housing; amending s. 420.5088, F.S.; revising
26 authority and eligibility criteria for certain
27 loans made by the Florida Housing Finance
28 Corporation under the Florida Homeownership
29 Assistance Program; amending s. 420.5092, F.S.;
30 increasing the amount of revenue bonds that may
31 be issued under the Florida Affordable Housing
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1 Guarantee Program; amending s. 624.5105, F.S.;
2 increasing the annual limitation on community
3 contribution tax credits; conforming
4 definitions; revising eligibility and
5 administrative requirements; amending s.
6 163.356, F.S.; authorizing certain counties or
7 municipalities to create more than one
8 community redevelopment agency under specified
9 conditions; conforming provisions; revising the
10 number of members on community redevelopment
11 boards in certain municipalities; providing an
12 appropriation; providing effective dates.
13
14 Be It Enacted by the Legislature of the State of Florida:
15
16 Section 1. Paragraphs (g) and (h) of subsection (5) of
17 section 212.08, Florida Statutes, are amended, and paragraph
18 (q) is added to that subsection, to read:
19 212.08 Sales, rental, use, consumption, distribution,
20 and storage tax; specified exemptions.--The sale at retail,
21 the rental, the use, the consumption, the distribution, and
22 the storage to be used or consumed in this state of the
23 following are hereby specifically exempt from the tax imposed
24 by this chapter.
25 (5) EXEMPTIONS; ACCOUNT OF USE.--
26 (g) Building materials used in the rehabilitation of
27 real property located in an enterprise zone.--
28 1. Beginning July 1, 1995, building materials used in
29 the rehabilitation of real property located in an enterprise
30 zone shall be exempt from the tax imposed by this chapter upon
31 an affirmative showing to the satisfaction of the department
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1 that the items have been used for the rehabilitation of real
2 property located in an enterprise zone. Except as provided in
3 subparagraph 2., this exemption inures to the owner, lessee,
4 or lessor of the rehabilitated real property located in an
5 enterprise zone only through a refund of previously paid
6 taxes. To receive a refund pursuant to this paragraph, the
7 owner, lessee, or lessor of the rehabilitated real property
8 located in an enterprise zone must file an application under
9 oath with the governing body or enterprise zone development
10 agency having jurisdiction over the enterprise zone where the
11 business is located, as applicable, which includes:
12 a. The name and address of the person claiming the
13 refund.
14 b. An address and assessment roll parcel number of the
15 rehabilitated real property in an enterprise zone for which a
16 refund of previously paid taxes is being sought.
17 c. A description of the improvements made to
18 accomplish the rehabilitation of the real property.
19 d. A copy of the building permit issued for the
20 rehabilitation of the real property.
21 e. A sworn statement, under the penalty of perjury,
22 from the general contractor licensed in this state with whom
23 the applicant contracted to make the improvements necessary to
24 accomplish the rehabilitation of the real property, which
25 statement lists the building materials used in the
26 rehabilitation of the real property, the actual cost of the
27 building materials, and the amount of sales tax paid in this
28 state on the building materials. In the event that a general
29 contractor has not been used, the applicant shall provide this
30 information in a sworn statement, under the penalty of
31 perjury. Copies of the invoices which evidence the purchase of
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1 the building materials used in such rehabilitation and the
2 payment of sales tax on the building materials shall be
3 attached to the sworn statement provided by the general
4 contractor or by the applicant. Unless the actual cost of
5 building materials used in the rehabilitation of real property
6 and the payment of sales taxes due thereon is documented by a
7 general contractor or by the applicant in this manner, the
8 cost of such building materials shall be an amount equal to 40
9 percent of the increase in assessed value for ad valorem tax
10 purposes.
11 f. The identifying number assigned pursuant to s.
12 290.0065 to the enterprise zone in which the rehabilitated
13 real property is located.
14 g. A certification by the local building code
15 inspector that the improvements necessary to accomplish the
16 rehabilitation of the real property are substantially
17 completed.
18 h. Whether the business is a small business as defined
19 by s. 288.703(1).
20 i. If applicable, the name and address of each
21 permanent employee of the business, including, for each
22 employee who is a resident of an enterprise zone, the
23 identifying number assigned pursuant to s. 290.0065 to the
24 enterprise zone in which the employee resides.
25 2. This exemption inures to a city, county, or other
26 governmental agency, or nonprofit community-based organization
27 through a refund of previously paid taxes if the building
28 materials used in the rehabilitation of real property located
29 in an enterprise zone are paid for from the funds of a
30 community development block grant, State Housing Initiatives
31 Partnership Program, or similar grant or loan program. To
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1 receive a refund pursuant to this paragraph, a city, county,
2 or other governmental agency, or nonprofit community-based
3 organization must file an application which includes the same
4 information required to be provided in subparagraph 1. by an
5 owner, lessee, or lessor of rehabilitated real property. In
6 addition, the application must include a sworn statement
7 signed by the chief executive officer of the city, county, or
8 other governmental agency, or nonprofit community-based
9 organization seeking a refund which states that the building
10 materials for which a refund is sought were paid for from the
11 funds of a community development block grant, State Housing
12 Initiatives Partnership Program, or similar grant or loan
13 program.
14 3. Within 10 working days after receipt of an
15 application, the governing body or enterprise zone development
16 agency shall review the application to determine if it
17 contains all the information required pursuant to subparagraph
18 1. or subparagraph 2. and meets the criteria set out in this
19 paragraph. The governing body or agency shall certify all
20 applications that contain the information required pursuant to
21 subparagraph 1. or subparagraph 2. and meet the criteria set
22 out in this paragraph as eligible to receive a refund. If
23 applicable, the governing body or agency shall also certify if
24 20 percent of the employees of the business are residents of
25 an enterprise zone, excluding temporary and part-time
26 employees. The certification shall be in writing, and a copy
27 of the certification shall be transmitted to the executive
28 director of the Department of Revenue. The applicant shall be
29 responsible for forwarding a certified application to the
30 department within the time specified in subparagraph 4.
31
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1 4. An application for a refund pursuant to this
2 paragraph must be submitted to the department within 6 months
3 after the rehabilitation of the property is deemed to be
4 substantially completed by the local building code inspector
5 or within 90 days after the rehabilitated property is first
6 subject to assessment.
7 5. The provisions of s. 212.095 do not apply to any
8 refund application made pursuant to this paragraph. No more
9 than one exemption through a refund of previously paid taxes
10 for the rehabilitation of real property shall be permitted for
11 any one parcel of real property. No refund shall be granted
12 pursuant to this paragraph unless the amount to be refunded
13 exceeds $500. No refund granted pursuant to this paragraph
14 shall exceed the lesser of 97 percent of the Florida sales or
15 use tax paid on the cost of the building materials used in the
16 rehabilitation of the real property as determined pursuant to
17 sub-subparagraph 1.e. or $5,000, or, if no less than 20
18 percent of the employees of the business are residents of an
19 enterprise zone, excluding temporary and part-time employees,
20 the amount of refund granted pursuant to this paragraph shall
21 not exceed the lesser of 97 percent of the sales tax paid on
22 the cost of such building materials or $10,000. A refund
23 approved pursuant to this paragraph shall be made within 30
24 days of formal approval by the department of the application
25 for the refund.
26 6. The department shall adopt rules governing the
27 manner and form of refund applications and may establish
28 guidelines as to the requisites for an affirmative showing of
29 qualification for exemption under this paragraph.
30 7. The department shall deduct an amount equal to 10
31 percent of each refund granted under the provisions of this
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1 paragraph from the amount transferred into the Local
2 Government Half-cent Sales Tax Clearing Trust Fund pursuant to
3 s. 212.20 for the county area in which the rehabilitated real
4 property is located and shall transfer that amount to the
5 General Revenue Fund.
6 8. For the purposes of the exemption provided in this
7 paragraph:
8 a. "Building materials" means tangible personal
9 property which becomes a component part of improvements to
10 real property.
11 b. "Real property" has the same meaning as provided in
12 s. 192.001(12).
13 c. "Rehabilitation of real property" means the
14 reconstruction, renovation, restoration, rehabilitation,
15 construction, or expansion of improvements to real property.
16 d. "Substantially completed" has the same meaning as
17 provided in s. 192.042(1).
18 9. The provisions of this paragraph shall expire and
19 be void on December 31, 2005.
20 (h) Business property used in an enterprise zone.--
21 1. Beginning July 1, 1995, business property purchased
22 for use by businesses located in an enterprise zone which is
23 subsequently used in an enterprise zone shall be exempt from
24 the tax imposed by this chapter. This exemption inures to the
25 business only through a refund of previously paid taxes. A
26 refund shall be authorized upon an affirmative showing by the
27 taxpayer to the satisfaction of the department that the
28 requirements of this paragraph have been met.
29 2. To receive a refund, the business must file under
30 oath with the governing body or enterprise zone development
31 agency having jurisdiction over the enterprise zone where the
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1 business is located, as applicable, an application which
2 includes:
3 a. The name and address of the business claiming the
4 refund.
5 b. The identifying number assigned pursuant to s.
6 290.0065 to the enterprise zone in which the business is
7 located.
8 c. A specific description of the property for which a
9 refund is sought, including its serial number or other
10 permanent identification number.
11 d. The location of the property.
12 e. The sales invoice or other proof of purchase of the
13 property, showing the amount of sales tax paid, the date of
14 purchase, and the name and address of the sales tax dealer
15 from whom the property was purchased.
16 f. Whether the business is a small business as defined
17 by s. 288.703(1).
18 g. If applicable, the name and address of each
19 permanent employee of the business, including, for each
20 employee who is a resident of an enterprise zone, the
21 identifying number assigned pursuant to s. 290.0065 to the
22 enterprise zone in which the employee resides.
23 3. Within 10 working days after receipt of an
24 application, the governing body or enterprise zone development
25 agency shall review the application to determine if it
26 contains all the information required pursuant to subparagraph
27 2. and meets the criteria set out in this paragraph. The
28 governing body or agency shall certify all applications that
29 contain the information required pursuant to subparagraph 2.
30 and meet the criteria set out in this paragraph as eligible to
31 receive a refund. If applicable, the governing body or agency
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1 shall also certify if 20 percent of the employees of the
2 business are residents of an enterprise zone, excluding
3 temporary and part-time employees. The certification shall be
4 in writing, and a copy of the certification shall be
5 transmitted to the executive director of the Department of
6 Revenue. The business shall be responsible for forwarding a
7 certified application to the department within the time
8 specified in subparagraph 4.
9 4. An application for a refund pursuant to this
10 paragraph must be submitted to the department within 6 months
11 after the tax is due on the business property that is
12 purchased.
13 5. The provisions of s. 212.095 do not apply to any
14 refund application made pursuant to this paragraph. The amount
15 refunded on purchases of business property under this
16 paragraph shall be the lesser of 97 percent of the sales tax
17 paid on such business property or $5,000, or, if no less than
18 20 percent of the employees of the business are residents of
19 an enterprise zone, excluding temporary and part-time
20 employees, the amount refunded on purchases of business
21 property under this paragraph shall be the lesser of 97
22 percent of the sales tax paid on such business property or
23 $10,000. A refund approved pursuant to this paragraph shall be
24 made within 30 days of formal approval by the department of
25 the application for the refund. No refund shall be granted
26 under this paragraph unless the amount to be refunded exceeds
27 $100 in sales tax paid on purchases made within a 60-day time
28 period.
29 6. The department shall adopt rules governing the
30 manner and form of refund applications and may establish
31
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1 guidelines as to the requisites for an affirmative showing of
2 qualification for exemption under this paragraph.
3 7. If the department determines that the business
4 property is used outside an enterprise zone within 3 years
5 from the date of purchase, the amount of taxes refunded to the
6 business purchasing such business property shall immediately
7 be due and payable to the department by the business, together
8 with the appropriate interest and penalty, computed from the
9 date of purchase, in the manner provided by this chapter.
10 Notwithstanding this subparagraph, business property used
11 exclusively in:
12 a. Licensed commercial fishing vessels;,
13 b. Fishing guide boats;, or
14 c. Ecotourism guide boats
15
16 that leave and return to a fixed location within an area
17 designated under s. 370.28 are eligible for the exemption
18 provided under this paragraph if all requirements of this
19 paragraph are met. Such vessels and boats must be owned by a
20 business that is eligible to receive the exemption provided
21 under this paragraph. This exemption does not apply to the
22 purchase of a vessel or boat.
23 8. The department shall deduct an amount equal to 10
24 percent of each refund granted under the provisions of this
25 paragraph from the amount transferred into the Local
26 Government Half-cent Sales Tax Clearing Trust Fund pursuant to
27 s. 212.20 for the county area in which the business property
28 is located and shall transfer that amount to the General
29 Revenue Fund.
30 9. For the purposes of this exemption, "business
31 property" means new or used property defined as "recovery
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1 property" in s. 168(c) of the Internal Revenue Code of 1954,
2 as amended, except:
3 a. Property classified as 3-year property under s.
4 168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
5 b. Industrial machinery and equipment as defined in
6 sub-subparagraph (b)6.a. and eligible for exemption under
7 paragraph (b); and
8 c. Building materials as defined in sub-subparagraph
9 (g)8.a.; and
10 d. Business property having a sales price of under
11 $500 per unit.
12 10. The provisions of this paragraph shall expire and
13 be void on December 31, 2005.
14 (q) Community contribution tax credit for donations.--
15 1. Authorization.--Beginning July 1, 2001, persons who
16 are registered with the department under s. 212.18 to collect
17 or remit sales or use tax and who make donations to eligible
18 sponsors are eligible for tax credits against their state
19 sales and use tax liabilities as provided in this paragraph:
20 a. The credit shall be computed as 50 percent of the
21 person's approved annual community contribution;
22 b. The credit shall be granted as a refund against
23 state sales and use taxes reported on returns and remitted in
24 the 12 months preceding the date of application to the
25 department for the credit as required in sub-subparagraph 3.c.
26 If the annual credit is not fully used through such refund
27 because of insufficient tax payments during the applicable
28 12-month period, the unused amount may be included in an
29 application for a refund made pursuant to sub-subparagraph
30 3.c. in subsequent years against the total tax payments made
31 for such year. Carryover credits may be applied for a 3-year
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1 period without regard to any time limitation that would
2 otherwise apply under s. 215.26;
3 c. No person shall receive more than $200,000 in
4 annual tax credits for all approved community contributions
5 made in any one year;
6 d. All proposals for the granting of the tax credit
7 shall require the prior approval of the Office of Tourism,
8 Trade, and Economic Development;
9 e. The total amount of tax credits which may be
10 granted for all programs approved under this paragraph, s.
11 220.183, and s. 624.5105 is $20 million annually; and
12 f. A person who is eligible to receive the credit
13 provided for in this paragraph, s. 220.183, or s. 624.5105 may
14 receive the credit only under the one section of the person's
15 choice.
16 2. Eligibility requirements.--
17 a. A community contribution by a person must be in the
18 following form:
19 (I) Cash or other liquid assets;
20 (II) Real property;
21 (III) Goods or inventory; or
22 (IV) Other physical resources as identified by the
23 Office of Tourism, Trade, and Economic Development.
24 b. All community contributions must be reserved
25 exclusively for use in a project. As used in this
26 sub-subparagraph, the term "project" means any activity
27 undertaken by an eligible sponsor which is designed to
28 construct, improve, or substantially rehabilitate housing that
29 is affordable to low-income or very-low-income households as
30 defined in s. 420.9071(19) and (28); designed to provide
31 commercial, industrial, or public resources and facilities; or
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1 designed to improve entrepreneurial and job-development
2 opportunities for low-income persons. A project may be the
3 investment necessary to increase access to high-speed
4 broadband capability in rural communities with enterprise
5 zones, including projects that result in improvements to
6 communications assets that are owned by a business. A project
7 may include the provision of museum educational programs and
8 materials that are directly related to any project approved
9 between January 1, 1996, and December 31, 1999, and located in
10 an enterprise zone as referenced in s. 290.00675. This
11 paragraph does not preclude projects that propose to construct
12 or rehabilitate housing for low-income or very-low-income
13 households on scattered sites. The Office of Tourism, Trade,
14 and Economic Development may reserve up to 50 percent of the
15 available annual tax credits for housing for very-low-income
16 households pursuant to s. 420.9071(28) for the first 6 months
17 of the fiscal year. With respect to housing, contributions may
18 be used to pay the following eligible low-income and
19 very-low-income housing-related activities:
20 (I) Project development impact and management fees for
21 low-income or very-low-income housing projects;
22 (II) Down payment and closing costs for eligible
23 persons, as defined in s. 420.9071(19) and (28);
24 (III) Administrative costs, including housing
25 counseling and marketing fees, not to exceed 10 percent of the
26 community contribution, directly related to low-income or
27 very-low-income projects; and
28 (IV) Removal of liens recorded against residential
29 property by municipal, county, or special-district local
30 governments when satisfaction of the lien is a necessary
31 precedent to the transfer of the property to an eligible
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1 person, as defined in s. 420.9071(19) and (28), for the
2 purpose of promoting home ownership. Contributions for lien
3 removal must be received from a nonrelated third party.
4 c. The project must be undertaken by an "eligible
5 sponsor," which includes:
6 (I) A community action program;
7 (II) A nonprofit community-based development
8 organization whose mission is the provision of housing for
9 low-income or very-low-income households or increasing
10 entrepreneurial and job-development opportunities for
11 low-income persons;
12 (III) A neighborhood housing services corporation;
13 (IV) A local housing authority created under chapter
14 421;
15 (V) A community redevelopment agency created under s.
16 163.356;
17 (VI) The Florida Industrial Development Corporation;
18 (VII) An historic preservation district agency or
19 organization;
20 (VIII) A regional workforce board;
21 (IX) A direct-support organization as provided in s.
22 240.551;
23 (X) An enterprise zone development agency created
24 under s. 290.0056;
25 (XI) A community-based organization incorporated under
26 chapter 617 which is recognized as educational, charitable, or
27 scientific pursuant to s. 501(c)(3) of the Internal Revenue
28 Code and whose by-laws and articles of incorporation include
29 affordable housing, economic development, or community
30 development as the primary mission of the corporation;
31 (XII) Units of local government;
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1 (XIII) Units of state government; or
2 (XIV) Any other agency that the Office of Tourism,
3 Trade, and Economic Development designates by rule.
4
5 In no event may a contributing person have a financial
6 interest in the eligible sponsor.
7 d. The project must be located in an area designated
8 an enterprise zone or a Front Porch Florida community pursuant
9 to s. 14.2015(9)(b), unless the project increases access to
10 high-speed broadband capability for rural communities with
11 enterprise zones but is physically located outside the
12 designated rural zone boundaries. Any project designed to
13 construct or rehabilitate housing for low-income or
14 very-low-income households as defined in s. 420.0971(19) and
15 (28) is exempt from the area requirement of this
16 sub-subparagraph.
17 3. Application requirements.--
18 a. Any eligible sponsor seeking to participate in this
19 program must submit a proposal to the Office of Tourism,
20 Trade, and Economic Development which sets forth the name of
21 the sponsor, a description of the project and the area in
22 which the project is located, together with such supporting
23 information as is prescribed by rule. The proposal must also
24 contain a resolution from the local governmental unit in which
25 the project is located certifying that the project is
26 consistent with local plans and regulations.
27 b. Any person seeking to participate in this program
28 must submit an application for tax credit to the Office of
29 Tourism, Trade, and Economic Development which sets forth the
30 name of the sponsor, a description of the project, and the
31 type, value, and purpose of the contribution. The sponsor
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1 shall verify the terms of the application and indicate its
2 receipt of the contribution, which verification must be in
3 writing and accompany the application for tax credit. The
4 person must submit a separate tax credit application to the
5 office for each individual contribution that it makes to each
6 individual project.
7 c. Any person who has received notification from the
8 Office of Tourism, Trade, and Economic Development that a tax
9 credit has been approved must apply to the department to
10 receive the refund. Application must be made on the form
11 prescribed for claiming refunds of sales and use taxes and be
12 accompanied by a copy of the notification. A person may submit
13 only one application for refund to the department within any
14 12-month period.
15 4. Administration.--
16 a. The Office of Tourism, Trade, and Economic
17 Development may adopt rules pursuant to ss. 120.536(1) and
18 120.54 which are necessary to administer this paragraph,
19 including rules for the approval or disapproval of proposals
20 by a person.
21 b. The decision of the Office of Tourism, Trade, and
22 Economic Development must be in writing, and, if approved, the
23 notification shall state the maximum credit allowable to the
24 person. Upon approval, the office shall transmit a copy of the
25 decision to the Department of Revenue.
26 c. The Office of Tourism, Trade, and Economic
27 Development shall periodically monitor all projects in a
28 manner consistent with available resources to ensure that
29 resources are used in accordance with this paragraph; however,
30 each project must be reviewed at least once every 2 years.
31
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1 d. The Office of Tourism, Trade, and Economic
2 Development shall, in consultation with the Department of
3 Community Affairs, the Florida Housing Finance Corporation,
4 and the statewide and regional housing and financial
5 intermediaries, market the availability of the community
6 contribution tax credit program to community-based
7 organizations.
8 5. Expiration.--This paragraph expires June 30, 2005;
9 however, any accrued credit carryover that is unused on that
10 date may be used until the expiration of the 3-year carryover
11 period for such credit.
12 Section 2. Effective January 1, 2002, section 212.096,
13 Florida Statutes, is amended to read:
14 212.096 Sales, rental, storage, use tax; enterprise
15 zone jobs credit against sales tax.--
16 (1) For the purposes of the credit provided in this
17 section:
18 (a) "Eligible business" means any sole proprietorship,
19 firm, partnership, corporation, bank, savings association,
20 estate, trust, business trust, receiver, syndicate, or other
21 group or combination, or successor business, located in an
22 enterprise zone. The business must demonstrate to the
23 department that the total number of full-time jobs defined
24 under paragraph (d) has increased from the average of the
25 previous 12 months. The term "eligible business" includes a
26 business that added a minimum of five new full-time jobs in an
27 enterprise zone between July 1, 2000, and December 31, 2001.
28 An eligible business does not include any business which has
29 claimed the credit permitted under s. 220.181 for any new
30 business employee first beginning employment with the business
31 after July 1, 1995.
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1 (b) "Month" means either a calendar month or the time
2 period from any day of any month to the corresponding day of
3 the next succeeding month or, if there is no corresponding day
4 in the next succeeding month, the last day of the succeeding
5 month.
6 (c) "New employee" means a person residing in an
7 enterprise zone, a qualified Job Training Partnership Act
8 classroom training participant, or a participant in the
9 welfare transition program participant who begins employment
10 with an eligible business after July 1, 1995, and who has not
11 been previously employed full-time within the preceding 12
12 months by the eligible business, or a successor eligible
13 business, claiming the credit allowed by this section. The
14 term "new employee" also includes an employee leased from an
15 employee leasing company licensed under chapter 468, if such
16 employee has been continuously leased to the employer for an
17 average of at least 36 hours per week for more than 6 months.
18 (d) "Jobs" means full-time positions, as consistent
19 with terms used by the Agency for Workforce Innovation and the
20 United States Department of Labor for purposes of unemployment
21 compensation tax administration and employment estimation,
22 resulting directly from business operations in this state.
23 This number may not include temporary construction jobs
24 involved with the construction of facilities or any jobs that
25 have previously been included in any application for tax
26 credits under s. 220.181(1).
27 (e) "New job has been created" means that the total
28 number of full-time jobs has increased in an enterprise zone
29 from the average of the previous 12 months, as demonstrated to
30 the department by a business located in the enterprise zone.
31
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1 A person shall be deemed to be employed if the person performs
2 duties in connection with the operations of the business on a
3 regular, full-time basis, provided the person is performing
4 such duties for an average of at least 36 hours per week each
5 month, or a part-time basis, provided the person is performing
6 such duties for an average of at least 20 hours per week each
7 month throughout the year. The person must be performing such
8 duties at a business site located in the enterprise zone.
9 (2)(a) It is the legislative intent to encourage the
10 provision of meaningful employment opportunities which will
11 improve the quality of life of those employed and to encourage
12 economic expansion of enterprise zones and the state.
13 Therefore, beginning January July 1, 2002 1995, upon an
14 affirmative showing by an eligible a business to the
15 satisfaction of the department that the requirements of this
16 section have been met, the business shall be allowed a credit
17 against the tax remitted under this chapter.
18 (b) The credit shall be computed as 20 follows:
19 1. Ten percent of the actual monthly wages paid in
20 this state to each new employee hired when a new job has been
21 created, unless the business is located within a rural
22 enterprise zone pursuant to s. 290.004(8), in which case the
23 credit shall be 30 percent of the actual monthly wages paid
24 whose wages do not exceed $1,500 a month. If no less than 20
25 percent of the employees of the business are residents of an
26 enterprise zone, excluding temporary and part-time employees,
27 the credit shall be computed as 30 15 percent of the actual
28 monthly wages paid in this state to each new employee hired
29 when a new job has been created, unless the business is
30 located within a rural enterprise zone, in which case the
31 credit shall be 45 percent of the actual monthly wages paid.
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1 If the new employee hired when a new job is created is a
2 participant in the welfare transition program the following
3 credit shall be a percent of the actual monthly wages paid: 40
4 percent for $4 above the hourly federal minimum wage rate; 41
5 percent for $5 above the hourly federal minimum wage rate; 42
6 percent for $6 above the hourly federal minimum wage rate; 43
7 percent for $7 above the hourly federal minimum wage rate; and
8 44 percent for $8 above the hourly federal minimum wage rate.;
9 2. Five percent of the first $1,500 of actual monthly
10 wages paid in this state for each new employee whose wages
11 exceed $1,500 a month; or
12 3. Fifteen percent of the first $1,500 of actual
13 monthly wages paid in this state for each new employee who is
14 a WAGES Program participant pursuant to chapter 414.
15
16 For purposes of this paragraph, monthly wages shall be
17 computed as one-twelfth of the expected annual wages paid to
18 such employee. The amount paid as wages to a new employee is
19 the compensation paid to such employee that is subject to
20 unemployment tax. The credit shall be allowed for up to 24 12
21 consecutive months, beginning with the first tax return due
22 pursuant to s. 212.11 after approval by the department.
23 (3) In order to claim this credit, an eligible
24 business must file under oath with the governing body or
25 enterprise zone development agency having jurisdiction over
26 the enterprise zone where the business is located, as
27 applicable, a statement which includes:
28 (a) For each new employee for whom this credit is
29 claimed, the employee's name and place of residence, including
30 the identifying number assigned pursuant to s. 290.0065 to the
31 enterprise zone in which the employee resides if the new
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1 employee is a person residing in an enterprise zone, and, if
2 applicable, documentation that the employee is a qualified Job
3 Training Partnership Act classroom training participant or a
4 welfare transition program participant.
5 (b) If applicable, the name and address of each
6 permanent employee of the business, including, for each
7 employee who is a resident of an enterprise zone, the
8 identifying number assigned pursuant to s. 290.0065 to the
9 enterprise zone in which the employee resides.
10 (c) The name and address of the eligible business.
11 (d) The starting salary or hourly wages paid to the
12 new employee.
13 (e) Demonstration to the department that the total
14 number of full-time jobs defined under paragraph (1)(d) has
15 increased in an enterprise zone from the average of the
16 previous 12 months.
17 (f)(e) The identifying number assigned pursuant to s.
18 290.0065 to the enterprise zone in which the business is
19 located.
20 (g)(f) Whether the business is a small business as
21 defined by s. 288.703(1).
22 (h)(g) Within 10 working days after receipt of an
23 application, the governing body or enterprise zone development
24 agency shall review the application to determine if it
25 contains all the information required pursuant to this
26 subsection and meets the criteria set out in this section. The
27 governing body or agency shall certify all applications that
28 contain the information required pursuant to this subsection
29 and meet the criteria set out in this section as eligible to
30 receive a credit. If applicable, the governing body or agency
31 shall also certify if 20 percent of the employees of the
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1 business are residents of an enterprise zone, excluding
2 temporary and part-time employees. The certification shall be
3 in writing, and a copy of the certification shall be
4 transmitted to the executive director of the Department of
5 Revenue. The business shall be responsible for forwarding a
6 certified application to the department within the time
7 specified in paragraph (i) (h).
8 (i)(h) All applications for a credit pursuant to this
9 section must be submitted to the department within 6 4 months
10 after the new employee is hired.
11 (4) Within 10 working days after receipt of a
12 completed application for a credit authorized in this section,
13 the department shall inform the business that the application
14 has been approved. The credit may be taken on the first return
15 due after receipt of approval from the department.
16 (5)(4) In the event the application is incomplete or
17 insufficient to support the credit authorized in this section,
18 the department shall deny the credit and notify the business
19 of that fact. The business may reapply for this credit.
20 (6)(5) The credit provided in this section does not
21 apply:
22 (a) For any new employee who is an owner, partner, or
23 stockholder of an eligible business.
24 (b) For any new employee who is employed for any
25 period less than 3 full calendar months.
26 (7)(6) The credit provided in this section shall not
27 be allowed for any month in which the tax due for such period
28 or the tax return required pursuant to s. 212.11 for such
29 period is delinquent.
30 (8)(7) In the event an eligible business has a credit
31 larger than the amount owed the state on the tax return for
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1 the time period in which the credit is claimed, the amount of
2 the credit for that time period shall be the amount owed the
3 state on that tax return.
4 (9)(8) Any business which has claimed this credit
5 shall not be allowed any credit under the provisions of s.
6 220.181 for any new employee beginning employment after July
7 1, 1995.
8 (10)(9) It shall be the responsibility of each
9 business to affirmatively demonstrate to the satisfaction of
10 the department that it meets the requirements of this section.
11 (11)(10) Any person who fraudulently claims this
12 credit is liable for repayment of the credit plus a mandatory
13 penalty of 100 percent of the credit plus interest at the rate
14 provided in this chapter, and such person is guilty of a
15 misdemeanor of the second degree, punishable as provided in s.
16 775.082 or s. 775.083.
17 (12)(11) The provisions of this section, except for
18 subsection (11) (10), shall expire and be void on December 31,
19 2005.
20 Section 3. Effective January 1, 2002, subsection (1)
21 of section 212.098, Florida Statutes, is amended to read:
22 212.098 Rural Job Tax Credit Program.--
23 (1) As used in this section, the term:
24 (a) "Eligible business" means any sole proprietorship,
25 firm, partnership, or corporation that is located in a
26 qualified county and is predominantly engaged in, or is
27 headquarters for a business predominantly engaged in,
28 activities usually provided for consideration by firms
29 classified within the following standard industrial
30 classifications: SIC 01-SIC 09 (agriculture, forestry, and
31 fishing); SIC 20-SIC 39 (manufacturing); SIC 422 (public
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1 warehousing and storage); SIC 70 (hotels and other lodging
2 places); SIC 7391 (research and development); SIC 7992 (public
3 golf courses); and SIC 7996 (amusement parks). A targeted
4 industry for the Qualified Target Industry Tax Refund Program
5 pursuant to s. 288.106 is also an eligible business. A call
6 center or similar customer service operation that services a
7 multistate market or an international market is also an
8 eligible business. In addition, the Office of Tourism, Trade,
9 and Economic Development may, as part of its final budget
10 request submitted pursuant to s. 216.023, recommend additions
11 to or deletions from the list of standard industrial
12 classifications used to determine an eligible business, and
13 the Legislature may implement such recommendations. Excluded
14 from eligible receipts are receipts from retail sales, except
15 such receipts for hotels and other lodging places classified
16 in SIC 70, public golf courses in SIC 7992, and amusement
17 parks in SIC 7996. For purposes of this paragraph, the term
18 "predominantly" means that more than 50 percent of the
19 business's gross receipts from all sources is generated by
20 those activities usually provided for consideration by firms
21 in the specified standard industrial classification. The
22 determination of whether the business is located in a
23 qualified county and the tier ranking of that county must be
24 based on the date of application for the credit under this
25 section. Commonly owned and controlled entities are to be
26 considered a single business entity.
27 (b) "Qualified employee" means any employee of an
28 eligible business who performs duties in connection with the
29 operations of the business on a regular, full-time basis for
30 an average of at least 36 hours per week for at least 3 months
31 within the qualified county in which the eligible business is
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1 located. An owner or partner of the eligible business is not a
2 qualified employee.
3 (c) "Qualified county" means a county that has a
4 population of fewer than 75,000 persons, or any county that
5 has a population of 100,000 or less and is contiguous to a
6 county that has a population of less than 75,000, selected in
7 the following manner: every third year, the Office of
8 Tourism, Trade, and Economic Development shall rank and tier
9 the state's counties according to the following four factors:
10 1. Highest unemployment rate for the most recent
11 36-month period.
12 2. Lowest per capita income for the most recent
13 36-month period.
14 3. Highest percentage of residents whose incomes are
15 below the poverty level, based upon the most recent data
16 available.
17 4. Average weekly manufacturing wage, based upon the
18 most recent data available.
19
20 Tier-one qualified counties are those ranked 1-5 and represent
21 the state's least-developed counties according to this
22 ranking. Tier-two qualified counties are those ranked 6-10,
23 and tier-three counties are those ranked 11-17.
24 Notwithstanding this definition, "qualified county" also means
25 a county that contains an area that has been designated as a
26 federal Enterprise Community pursuant to the 1999 Agricultural
27 Appropriations Act. Such a designated area shall be ranked in
28 tier three until the areas are reevaluated by the Office of
29 Tourism, Trade, and Economic Development. Notwithstanding any
30 provision in this section to the contrary, any rural community
31 in an area designated as a rural area of critical economic
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1 concern under s. 288.0656 shall provide a basis for the tax
2 credits provided under this section and s. 220.1895 and shall
3 be ranked at the tier-three level.
4 (d) "New business" means any eligible business first
5 beginning operation on a site in a qualified county and
6 clearly separate from any other commercial or business
7 operation of the business entity within a qualified county. A
8 business entity that operated an eligible business within a
9 qualified county within the 48 months before the period
10 provided for application by subsection (2) is not considered a
11 new business.
12 (e) "Existing business" means any eligible business
13 that does not meet the criteria for a new business.
14 Section 4. Reduction or waiver of financial match
15 requirements.--Notwithstanding any other law, the member
16 agencies and organizations of the Rural Economic Development
17 Initiative (REDI), as defined in section 288.0656(6)(a),
18 Florida Statutes, shall review the financial match
19 requirements for projects in rural areas as defined in section
20 288.0656(2)(b), Florida Statutes.
21 (1) Each agency and organization shall develop a
22 proposal to waive or reduce the match requirement for rural
23 areas.
24 (2) Agencies and organizations shall ensure that all
25 proposals are submitted to the Office of Tourism, Trade, and
26 Economic Development for review by the REDI agencies.
27 (3) These proposals shall be delivered to the Office
28 of Tourism, Trade, and Economic Development for distribution
29 to the REDI agencies and organizations. A meeting of REDI
30 agencies and organizations must be called within 30 days after
31
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1 receipt of such proposals for REDI comment and recommendations
2 on each proposal.
3 (4) Waivers and reductions must be requested by the
4 county or community, and such county or community must have
5 three or more of the factors identified in s. 288.0656(2)(a).
6 (5) Any other funds available to the project may be
7 used for financial match of federal programs when there is
8 fiscal hardship and the match requirements may not be waived
9 or reduced.
10 (6) When match requirements are not reduced or
11 eliminated, donations of land, though usually not recognized
12 as an in-kind match, may be permitted.
13 (7) To the fullest extent possible, agencies and
14 organizations shall expedite the rule adoption and amendment
15 process if necessary to incorporate the reduction in match by
16 rural areas in fiscal distress.
17 (8) REDI shall include in its annual report an
18 evaluation on the status of changes to rules, number of awards
19 made with waivers, and recommendations for future changes.
20 Section 5. Subsection (1) of section 220.03, Florida
21 Statutes, is amended to read:
22 220.03 Definitions.--
23 (1) SPECIFIC TERMS.--When used in this code, and when
24 not otherwise distinctly expressed or manifestly incompatible
25 with the intent thereof, the following terms shall have the
26 following meanings:
27 (a) "Ad valorem taxes paid" means 96 percent of
28 property taxes levied for operating purposes and does not
29 include interest, penalties, or discounts foregone. In
30 addition, the term "ad valorem taxes paid," for purposes of
31 the credit in s. 220.182, means the ad valorem tax paid on new
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1 or additional real or personal property acquired to establish
2 a new business or facilitate a business expansion, including
3 pollution and waste control facilities, or any part thereof,
4 and including one or more buildings or other structures,
5 machinery, fixtures, and equipment. The provisions of this
6 paragraph shall expire and be void on June 30, 2005.
7 (b) "Affiliated group of corporations" means two or
8 more corporations which constitute an affiliated group of
9 corporations as defined in s. 1504(a) of the Internal Revenue
10 Code.
11 (c) "Business" or "business firm" means any business
12 entity authorized to do business in this state as defined in
13 paragraph (e), and any bank or savings and loan association as
14 defined in s. 220.62, subject to the tax imposed by the
15 provisions of this chapter. The provisions of this paragraph
16 shall expire and be void on June 30, 2005.
17 (d) "Community contribution" means the grant by a
18 business firm of any of the following items:
19 1. Cash or other liquid assets.
20 2. Real property.
21 3. Goods or inventory.
22 4. Other physical resources as identified by the
23 department.
24
25 The provisions of this paragraph shall expire and be void on
26 June 30, 2005.
27 (e) "Corporation" includes all domestic corporations;
28 foreign corporations qualified to do business in this state or
29 actually doing business in this state; joint-stock companies;
30 limited liability companies, under chapter 608; common-law
31 declarations of trust, under chapter 609; corporations not for
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1 profit, under chapter 617; agricultural cooperative marketing
2 associations, under chapter 618; professional service
3 corporations, under chapter 621; foreign unincorporated
4 associations, under chapter 622; private school corporations,
5 under chapter 623; foreign corporations not for profit which
6 are carrying on their activities in this state; and all other
7 organizations, associations, legal entities, and artificial
8 persons which are created by or pursuant to the statutes of
9 this state, the United States, or any other state, territory,
10 possession, or jurisdiction. The term "corporation" does not
11 include proprietorships, even if using a fictitious name;
12 partnerships of any type, as such; limited liability companies
13 that are taxable as partnerships for federal income tax
14 purposes; state or public fairs or expositions, under chapter
15 616; estates of decedents or incompetents; testamentary
16 trusts; or private trusts.
17 (f) "Department" means the Department of Revenue of
18 this state.
19 (g) "Director" means the executive director of the
20 Department of Revenue and, when there has been an appropriate
21 delegation of authority, the executive director's delegate.
22 (h) "Earned," "accrued," "paid," or "incurred" shall
23 be construed according to the method of accounting upon the
24 basis of which a taxpayer's income is computed under this
25 code.
26 (i) "Emergency," as used in s. 220.02 and in paragraph
27 (u) of this subsection, means occurrence of widespread or
28 severe damage, injury, or loss of life or property proclaimed
29 pursuant to s. 14.022 or declared pursuant to s. 252.36. The
30 provisions of this paragraph shall expire and be void on June
31 30, 2005.
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1 (j) "Enterprise zone" means an area in the state
2 designated pursuant to s. 290.0065. The provisions of this
3 paragraph shall expire and be void on June 30, 2005.
4 (k) "Expansion of an existing business," for the
5 purposes of the enterprise zone property tax credit, means any
6 business entity authorized to do business in this state as
7 defined in paragraph (e), and any bank or savings and loan
8 association as defined in s. 220.62, subject to the tax
9 imposed by the provisions of this chapter, located in an
10 enterprise zone, which expands by or through additions to real
11 and personal property and which establishes five or more new
12 jobs to employ five or more additional full-time employees at
13 such location. The provisions of this paragraph shall expire
14 and be void on June 30, 2005.
15 (l) "Fiscal year" means an accounting period of 12
16 months or less ending on the last day of any month other than
17 December or, in the case of a taxpayer with an annual
18 accounting period of 52-53 weeks under s. 441(f) of the
19 Internal Revenue Code, the period determined under that
20 subsection.
21 (m) "Includes" or "including," when used in a
22 definition contained in this code, shall not be deemed to
23 exclude other things otherwise within the meaning of the term
24 defined.
25 (n) "Internal Revenue Code" means the United States
26 Internal Revenue Code of 1986, as amended and in effect on
27 January 1, 2000, except as provided in subsection (3).
28 (o) "Local government" means any county or
29 incorporated municipality in the state. The provisions of this
30 paragraph shall expire and be void on June 30, 2005.
31
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1 (p) "New business," for the purposes of the enterprise
2 zone property tax credit, means any business entity authorized
3 to do business in this state as defined in paragraph (e), or
4 any bank or savings and loan association as defined in s.
5 220.62, subject to the tax imposed by the provisions of this
6 chapter, first beginning operations on a site located in an
7 enterprise zone and clearly separate from any other commercial
8 or industrial operations owned by the same entity, bank, or
9 savings and loan association and which establishes five or
10 more new jobs to employ five or more additional full-time
11 employees at such location. The provisions of this paragraph
12 shall expire and be void on June 30, 2005.
13 (q) "New employee," for the purposes of the enterprise
14 zone jobs credit, means a person residing in an enterprise
15 zone, a qualified Job Training Partnership Act classroom
16 training participant, or a WAGES Program participant in the
17 welfare transition program who is employed at a business
18 located in an enterprise zone who begins employment in the
19 operations of the business after July 1, 1995, and who has not
20 been previously employed full-time within the preceding 12
21 months by the business or a successor business claiming the
22 credit pursuant to s. 220.181. A person shall be deemed to be
23 employed by such a business if the person performs duties in
24 connection with the operations of the business on a full-time
25 basis, provided she or he is performing such duties for an
26 average of at least 36 hours per week each month. The term
27 "new employee" also includes an employee leased from an
28 employee leasing company licensed under chapter 468 who has
29 been continuously leased to the employer for an average of at
30 least 36 hours per week for more than 6 months. , or a
31 part-time basis, provided she or he is performing such duties
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1 for an average of at least 20 hours per week each month
2 throughout the year. The person must be performing such duties
3 at a business site located in an enterprise zone. The
4 provisions of this paragraph shall expire and be void on June
5 30, 2005.
6 (r) "Nonbusiness income" means rents and royalties
7 from real or tangible personal property, capital gains,
8 interest, dividends, and patent and copyright royalties, to
9 the extent that they do not arise from transactions and
10 activities in the regular course of the taxpayer's trade or
11 business. The term "nonbusiness income" does not include
12 income from tangible and intangible property if the
13 acquisition, management, and disposition of the property
14 constitute integral parts of the taxpayer's regular trade or
15 business operations, or any amounts which could be included in
16 apportionable income without violating the due process clause
17 of the United States Constitution. For purposes of this
18 definition, "income" means gross receipts less all expenses
19 directly or indirectly attributable thereto. Functionally
20 related dividends are presumed to be business income.
21 (s) "Partnership" includes a syndicate, group, pool,
22 joint venture, or other unincorporated organization through or
23 by means of which any business, financial operation, or
24 venture is carried on, including a limited partnership; and
25 the term "partner" includes a member having a capital or a
26 profits interest in a partnership.
27 (t) "Project" means any activity undertaken by an
28 eligible sponsor, as defined in s. 220.183(2)(c), which is
29 designed to construct, improve, or substantially rehabilitate
30 housing that is affordable to low-income or very-low-income
31 households as defined in s. 420.9071(19) and (28); designed to
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1 provide commercial, industrial, or public resources and
2 facilities; or designed to improve entrepreneurial and
3 job-development opportunities for low-income persons. A
4 project may be the investment necessary to increase access to
5 high-speed broadband capability in rural communities with
6 enterprise zones, including projects that result in
7 improvements to communications assets that are owned by a
8 business. A project may include the provision of museum
9 educational programs and materials that are directly related
10 to any project approved between January 1, 1996, and December
11 31, 1999, and located in an enterprise zone as referenced in
12 s. 290.00675. This paragraph does not preclude projects that
13 propose to construct or rehabilitate low-income or
14 very-low-income housing on scattered sites. The Office of
15 Tourism, Trade, and Economic Development may reserve up to 50
16 percent of the available annual tax credits under s. 220.181
17 for housing for very-low-income households pursuant to s.
18 420.9071(28) for the first 6 months of the fiscal year. With
19 respect to housing, contributions may be used to pay the
20 following eligible project-related activities:
21 1. Project development, impact, and management fees
22 for low-income or very-low-income housing projects;
23 2. Down payment and closing costs for eligible
24 persons, as defined in s. 420.9071(19) and (28);
25 3. Administrative costs, including housing counseling
26 and marketing fees, not to exceed 10 percent of the community
27 contribution, directly related to low-income or
28 very-low-income projects; and
29 4. Removal of liens recorded against residential
30 property by municipal, county, or special-district local
31 governments when satisfaction of the lien is a necessary
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1 precedent to the transfer of the property to an eligible
2 person, as defined in s. 420.9071(19) and (28), for the
3 purpose of promoting home ownership. Contributions for lien
4 removal must be received from a nonrelated third party.
5 "Project" means any activity undertaken by an eligible
6 sponsor, as defined in s. 220.183(2)(c), which is designed to
7 construct, improve, or substantially rehabilitate housing or
8 commercial, industrial, or public resources and facilities or
9 to improve entrepreneurial and job-development opportunities
10 for low-income persons.
11
12 The provisions of this paragraph shall expire and be void on
13 June 30, 2005.
14 (u) "Rebuilding of an existing business" means
15 replacement or restoration of real or tangible property
16 destroyed or damaged in an emergency, as defined in paragraph
17 (i), after July 1, 1995, in an enterprise zone, by a business
18 entity authorized to do business in this state as defined in
19 paragraph (e), or a bank or savings and loan association as
20 defined in s. 220.62, subject to the tax imposed by the
21 provisions of this chapter, located in the enterprise zone.
22 The provisions of this paragraph shall expire and be void on
23 June 30, 2005.
24 (v) "Regulations" includes rules promulgated, and
25 forms prescribed, by the department.
26 (w) "Returns" includes declarations of estimated tax
27 required under this code.
28 (x) "Secretary" means the secretary of the Department
29 of Commerce. The provisions of this paragraph shall expire and
30 be void on June 30, 2005.
31
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1 (y) "State," when applied to a jurisdiction other than
2 Florida, means any state of the United States, the District of
3 Columbia, the Commonwealth of Puerto Rico, any territory or
4 possession of the United States, and any foreign country, or
5 any political subdivision of any of the foregoing.
6 (z) "Taxable year" means the calendar or fiscal year
7 upon the basis of which net income is computed under this
8 code, including, in the case of a return made for a fractional
9 part of a year, the period for which such return is made.
10 (aa) "Taxpayer" means any corporation subject to the
11 tax imposed by this code, and includes all corporations for
12 which a consolidated return is filed under s. 220.131.
13 However, "taxpayer" does not include a corporation having no
14 individuals (including individuals employed by an affiliate)
15 receiving compensation in this state as defined in s. 220.15
16 when the only property owned or leased by said corporation
17 (including an affiliate) in this state is located at the
18 premises of a printer with which it has contracted for
19 printing, if such property consists of the final printed
20 product, property which becomes a part of the final printed
21 product, or property from which the printed product is
22 produced.
23 (bb) "Functionally related dividends" include the
24 following types of dividends:
25 1. Those received from a subsidiary of which the
26 voting stock is more than 50 percent owned or controlled by
27 the taxpayer or members of its affiliated group and which is
28 engaged in the same general line of business.
29 2. Those received from any corporation which is either
30 a significant source of supply for the taxpayer or its
31 affiliated group or a significant purchaser of the output of
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1 the taxpayer or its affiliated group, or which sells a
2 significant part of its output or obtains a significant part
3 of its raw materials or input from the taxpayer or its
4 affiliated group. "Significant" means an amount of 15 percent
5 or more.
6 3. Those resulting from the investment of working
7 capital or some other purpose in furtherance of the taxpayer
8 or its affiliated group.
9
10 However, dividends not otherwise subject to tax under this
11 chapter are excluded.
12 (cc) "Child care facility startup costs" means
13 expenditures for substantial renovation, equipment, including
14 playground equipment and kitchen appliances and cooking
15 equipment, real property, including land and improvements, and
16 for reduction of debt, made in connection with a child care
17 facility as defined by s. 402.302, or any facility providing
18 daily care to children who are mildly ill, which is located in
19 this state on the taxpayer's premises and used by the
20 employees of the taxpayer.
21 (dd) "Operation of a child care facility" means
22 operation of a child care facility as defined by s. 402.302,
23 or any facility providing daily care to children who are
24 mildly ill, which is located in this state within 5 miles of
25 at least one place of business of the taxpayer and which is
26 used by the employees of the taxpayer.
27 (ee) "Citrus processing company" means a corporation
28 which, during the 60-month period ending on December 31, 1997,
29 had derived more than 50 percent of its total gross receipts
30 from the processing of citrus products and the manufacture of
31 juices.
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1 (ff) "New job has been created" means that the total
2 number of full-time jobs has increased in an enterprise zone
3 from the average of the previous 12 months, as demonstrated to
4 the department by a business located in the enterprise zone.
5 (gg) "Jobs" means full-time positions, as consistent
6 with terms used by the Agency for Workforce Innovation and the
7 United States Department of Labor for purposes of unemployment
8 compensation tax administration and employment estimation,
9 resulting directly from business operations in this state.
10 This number may not include temporary construction jobs
11 involved with the construction of facilities or any jobs that
12 have previously been included in any application for tax
13 credits under s. 220.181(1).
14 Section 6. Effective January 1, 2002, subsections (1)
15 and (2) of section 220.181, Florida Statutes, are amended to
16 read:
17 220.181 Enterprise zone jobs credit.--
18 (1)(a) Beginning January July 1, 2002 1995, there
19 shall be allowed a credit against the tax imposed by this
20 chapter to any business located in an enterprise zone which
21 demonstrates to the department that the total number of
22 full-time jobs defined has increased from the average of the
23 previous 12 months. This credit is also available for a
24 business that added a minimum of five new full-time jobs in an
25 enterprise zone between July 1, 2000, and December 31, 2001
26 employs one or more new employees. The credit shall be
27 computed as 20 follows:
28 1. Ten percent of the actual monthly wages paid in
29 this state to each new employee hired when a new job has been
30 created, as defined under s. 220.03(1)(ff), unless the
31 business is located in a rural enterprise zone, pursuant to s.
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1 290.004(8), in which case the credit shall be 30 percent of
2 the actual monthly wages paid whose wages do not exceed $1,500
3 a month. If no less than 20 percent of the employees of the
4 business are residents of an enterprise zone, excluding
5 temporary and part-time employees, the credit shall be
6 computed as 30 15 percent of the actual monthly wages paid in
7 this state to each new employee hired when a new job has been
8 created, unless the business is located in a rural enterprise
9 zone, in which case the credit shall be 45 percent of the
10 actual monthly wages paid, for a period of up to 24 12
11 consecutive months.; If the new employee hired when a new job
12 is created is a participant in the welfare transition program
13 the following credit shall be a percent of the actual monthly
14 wages paid: 40 percent for $4 above the hourly federal minimum
15 wage rate; 41 percent for $5 above the hourly federal minimum
16 wage rate; 42 percent for $6 above the hourly federal minimum
17 wage rate; 43 percent for $7 above the hourly federal minimum
18 wage rate; and 44 percent for $8 above the hourly federal
19 minimum wage rate.
20 2. Five percent of the first $1,500 of actual monthly
21 wages paid in this state for each new employee whose wages
22 exceed $1,500 a month; or
23 3. Fifteen percent of the first $1,500 of actual
24 monthly wages paid in this state for each new employee who is
25 a welfare transition program participant.
26 (b) This credit applies only with respect to wages
27 subject to unemployment tax and does not apply for any new
28 employee who is employed for any period less than 3 full
29 months.
30 (c) If this credit is not fully used in any one year,
31 the unused amount may be carried forward for a period not to
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1 exceed 5 years. The carryover credit may be used in a
2 subsequent year when the tax imposed by this chapter for such
3 year exceeds the credit for such year after applying the other
4 credits and unused credit carryovers in the order provided in
5 s. 220.02(8).
6 (2) When filing for an enterprise zone jobs credit, a
7 business must file under oath with the governing body or
8 enterprise zone development agency having jurisdiction over
9 the enterprise zone where the business is located, as
10 applicable, a statement which includes:
11 (a) For each new employee for whom this credit is
12 claimed, the employee's name and place of residence during the
13 taxable year, including the identifying number assigned
14 pursuant to s. 290.0065 to the enterprise zone in which the
15 new employee resides if the new employee is a person residing
16 in an enterprise zone, and, if applicable, documentation that
17 the employee is a qualified Job Training Partnership Act
18 classroom training participant or a welfare transition program
19 participant.
20 (b) If applicable, the name and address of each
21 permanent employee of the business, including, for each
22 employee who is a resident of an enterprise zone, the
23 identifying number assigned pursuant to s. 290.0065 to the
24 enterprise zone in which the employee resides.
25 (c) The name and address of the business.
26 (d) The identifying number assigned pursuant to s.
27 290.0065 to the enterprise zone in which the eligible business
28 is located.
29 (e) The salary or hourly wages paid to each new
30 employee claimed.
31
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1 (f) Demonstration to the department that the total
2 number of full-time jobs has increased from the average of the
3 previous 12 months.
4 (g)(f) Whether the business is a small business as
5 defined by s. 288.703(1).
6 Section 7. Subsections (1), (2), (3), and (4) of
7 section 220.183, Florida Statutes, are amended to read:
8 220.183 Community contribution tax credit.--
9 (1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
10 CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
11 SPENDING.--
12 (a) There shall be allowed a credit of 50 percent of a
13 community contribution against any tax due for a taxable year
14 under this chapter.
15 (b) No business firm shall receive more than $200,000
16 in annual tax credits for all approved community contributions
17 made in any one year.
18 (c) The total amount of tax credit which may be
19 granted for all programs approved under this section, s.
20 212.08(5)(q), and s. 624.5105 is $20 $10 million annually.
21 (d) All proposals for the granting of the tax credit
22 shall require the prior approval of the Office of Tourism,
23 Trade, and Economic Development.
24 (e) If the credit granted pursuant to this section is
25 not fully used in any one year because of insufficient tax
26 liability on the part of the business firm, the unused amount
27 may be carried forward for a period not to exceed 5 years. The
28 carryover credit may be used in a subsequent year when the tax
29 imposed by this chapter for such year exceeds the credit for
30 such year under this section after applying the other credits
31
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1 and unused credit carryovers in the order provided in s.
2 220.02(8).
3 (f) A taxpayer who files a Florida consolidated return
4 as a member of an affiliated group pursuant to s. 220.131(1)
5 may be allowed the credit on a consolidated return basis.
6 (g) A taxpayer who is eligible to receive the credit
7 provided for in s. 624.5105 is not eligible to receive the
8 credit provided by this section.
9 (2) ELIGIBILITY REQUIREMENTS.--
10 (a) All community contributions by a business firm
11 shall be in the form specified in s. 220.03(1)(d).
12 (b) All community contributions must be reserved
13 exclusively for use in projects as defined in s. 220.03(1)(t).
14 The Office of Tourism, Trade, and Economic Development may
15 reserve up to 50 percent of the available annual tax credits
16 for housing for very-low-income households pursuant to s.
17 420.9071(28), for the first 6 months of the fiscal year.
18 (c) The project must be undertaken by an "eligible
19 sponsor," defined here as:
20 1. A community action program;
21 2. A nonprofit community-based community development
22 organization whose mission is the provision of housing for
23 low-income or very-low-income households or increasing
24 entrepreneurial and job-development opportunities for
25 low-income persons corporation;
26 3. A neighborhood housing services corporation;
27 4. A local housing authority, created pursuant to
28 chapter 421;
29 5. A community redevelopment agency, created pursuant
30 to s. 163.356;
31 6. The Florida Industrial Development Corporation;
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1 7. An historic preservation district agency or
2 organization;
3 8. A regional workforce board private industry
4 council;
5 9. A direct-support organization as provided in s.
6 240.551;
7 10. An enterprise zone development agency created
8 pursuant to s. 290.0056 s. 290.0057; or
9 11. A community-based organization incorporated under
10 chapter 617 which is recognized as educational, charitable, or
11 scientific pursuant to s. 501(c)(3) of the Internal Revenue
12 Code and whose by-laws and articles of incorporation include
13 affordable housing, economic development, or community
14 development as the primary mission of the corporation;
15 12. Units of local government;
16 13. Units of state government; or
17 14.11. Such other agency as the Office of Tourism,
18 Trade, and Economic Development may, from time to time,
19 designate by rule.
20
21 In no event shall a contributing business firm have a
22 financial interest in the eligible sponsor.
23 (d) The project shall be located in an area designated
24 as an enterprise zone or a Front Porch Florida Community
25 pursuant to s. 14.2015(9)(b) pursuant to s. 290.0065. Any
26 project designed to construct or rehabilitate housing for
27 low-income or very-low-income households as defined in s.
28 420.9071(19) and (28) low-income housing is exempt from the
29 area requirement of this paragraph. This section does not
30 preclude projects that propose to construct or rehabilitate
31 housing for low-income or very-low-income households on
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1 scattered sites. Any project designed to provide increased
2 access to high-speed broadband capabilities which includes
3 coverage of a rural enterprise zone may locate the project's
4 infrastructure in any area of a rural county.
5 (3) APPLICATION REQUIREMENTS.--
6 (a) Any eligible sponsor wishing to participate in
7 this program must submit a proposal to the Office of Tourism,
8 Trade, and Economic Development which sets forth the sponsor,
9 the project, the area in which the project is located, and
10 such supporting information as may be prescribed by rule. The
11 proposal shall also contain a resolution from the local
12 governmental unit in which it is located certifying that the
13 project is consistent with local plans and regulations.
14 (b) Any business wishing to participate in this
15 program must submit an application for tax credit to the
16 Office of Tourism, Trade, and Economic Development, which
17 application sets forth the sponsor; the project; and the type,
18 value, and purpose of the contribution. The sponsor shall
19 verify the terms of the application and indicate its receipt
20 of willingness to receive the contribution, which verification
21 indicate its willingness to receive the contribution, which
22 verification must shall be in writing and shall accompany the
23 application for tax credit.
24 (c) The business firm must submit a separate
25 application for tax credit for each individual contribution
26 that which it makes proposes to contribute to each individual
27 project.
28 (4) ADMINISTRATION.--
29 (a) The Office of Tourism, Trade, and Economic
30 Development has authority to adopt rules pursuant to ss.
31 120.536(1) and 120.54 to implement the provisions of this
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1 section, including rules for the approval or disapproval of
2 proposals by business firms.
3 (b) The decision of the Office of Tourism, Trade, and
4 Economic Development shall be in writing, and, if approved,
5 the notification must proposal shall state the maximum credit
6 allowable to the business firm. A copy of the decision shall
7 be transmitted to the executive director of the Department of
8 Revenue, who shall apply such credit to the tax liability of
9 the business firm.
10 (c) The Office of Tourism, Trade, and Economic
11 Development shall periodically monitor all projects in a
12 manner consistent with available resources to ensure that
13 resources are utilized in accordance with this section;
14 however, each project shall be reviewed no less often than
15 once every 2 years.
16 (d) The Department of Revenue has authority to adopt
17 rules pursuant to ss. 120.536(1) and 120.54 to implement the
18 provisions of this section.
19 (e) The Office of Tourism, Trade, and Economic
20 Development shall, in consultation with the Department of
21 Community Affairs, the Florida Housing Finance Corporation,
22 and the statewide and regional housing and financial
23 intermediaries, market the availability of the community
24 contribution tax credit program to community-based
25 organizations.
26 Section 8. Section 288.018, Florida Statutes, is
27 amended to read:
28 288.018 Regional Rural Development Grants Program.--
29 (1) The Office of Tourism, Trade, and Economic
30 Development shall establish a matching grant program to
31 provide funding to regionally based economic development
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1 organizations representing rural counties and communities for
2 the purpose of building the professional capacity of their
3 organizations. The Office of Tourism, Trade, and Economic
4 Development is authorized to approve, on an annual basis,
5 grants to such regionally based economic development
6 organizations. The maximum amount an organization may receive
7 in any year will be $35,000, or $100,000 in a rural area of
8 critical economic concern recommended by the Rural Economic
9 Development Initiative and designated by the Governor, and
10 must be matched each year by an equivalent amount of nonstate
11 resources.
12 (2) In approving the participants, the Office of
13 Tourism, Trade, and Economic Development shall consider the
14 demonstrated need of the applicant for assistance and require
15 the following:
16 (a) Documentation of official commitments of support
17 from each of the units of local government represented by the
18 regional organization.
19 (b) Demonstration that each unit of local government
20 has made a financial or in-kind commitment to the regional
21 organization.
22 (c) Demonstration that the private sector has made
23 financial or in-kind commitments to the regional organization.
24 (d) Demonstration that the organization is in
25 existence and actively involved in economic development
26 activities serving the region.
27 (e) Demonstration of the manner in which the
28 organization is or will coordinate its efforts with those of
29 other local and state organizations.
30 (3) The Office of Tourism, Trade, and Economic
31 Development may also contract for the development of an
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1 enterprise zone web portal or web sites for each enterprise
2 zone which will be used to market the program for job creation
3 in disadvantaged urban and rural enterprise zones. Each
4 enterprise zone web page should include downloadable links to
5 state forms and information, as well as local message boards
6 that help businesses and residents receive information
7 concerning zone boundaries, job openings, zone programs, and
8 neighborhood improvement activities.
9 (4)(3) The Office of Tourism, Trade, and Economic
10 Development may expend up to $750,000 $600,000 each fiscal
11 year from funds appropriated to the Rural Community
12 Development Revolving Loan Fund for the purposes outlined in
13 this section. The Office of Tourism, Trade, and Economic
14 Development may contract with Enterprise Florida, Inc., for
15 the administration of the purposes specified in this section.
16 Funds released to Enterprise Florida, Inc., for this purpose
17 shall be released quarterly and shall be calculated based on
18 the applications in process.
19 Section 9. Section 288.019, Florida Statutes, is
20 created to read:
21 288.019 Rural considerations in grant review and
22 evaluation processes.--Notwithstanding any other law, and to
23 the fullest extent possible, the member agencies and
24 organizations of the Rural Economic Development Initiative
25 (REDI) as defined in s. 288.0656(6)(a) shall review all grant
26 and loan application evaluation criteria to ensure the fullest
27 access for rural counties as defined in s. 288.0656(2)(b) to
28 resources available throughout the state.
29 (1) Each REDI agency and organization shall review all
30 evaluation and scoring procedures and develop modifications to
31
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1 those procedures which minimize the impact of a project within
2 a rural area.
3 (2) Evaluation criteria and scoring procedures must
4 provide for an appropriate ranking based on the proportionate
5 impact that projects have on a rural area when compared with
6 similar project impacts on an urban area.
7 (3) Evaluation criteria and scoring procedures must
8 recognize the disparity of available fiscal resources for an
9 equal level of financial support from an urban county and a
10 rural county.
11 (a) The evaluation criteria should weight contribution
12 in proportion to the amount of funding available at the local
13 level.
14 (b) In-kind match should be allowed and applied as
15 financial match when a county is experiencing financial
16 distress through elevated unemployment at a rate in excess of
17 the state's average by 5 percentage points or because of the
18 loss of its ad valorem base.
19 (4) For existing programs, the modified evaluation
20 criteria and scoring procedure must be delivered to the Office
21 of Tourism, Trade, and Economic Development for distribution
22 to the REDI agencies and organizations. The REDI agencies and
23 organizations shall review and make comments. Future rules,
24 programs, evaluation criteria, and scoring processes must be
25 brought before a REDI meeting for review, discussion, and
26 recommendation to allow rural counties fuller access to the
27 state's resources.
28 Section 10. Subsection (2) of section 288.065, Florida
29 Statutes, is amended to read:
30 288.065 Rural Community Development Revolving Loan
31 Fund.--
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1 (2) The program shall provide for long-term loans,
2 loan guarantees, and loan loss reserves to units of local
3 governments, or economic development organizations
4 substantially underwritten by a unit of local government,
5 within counties with populations of 75,000 or less, or any
6 county that has a population of 100,000 or less and is
7 contiguous to a county with a population of 75,000 or less, as
8 determined by the most recent official estimate pursuant to s.
9 186.901, residing in incorporated and unincorporated areas of
10 the county; to units of local government, or economic
11 development organizations substantially underwritten by a unit
12 of local government, within a rural area of critical economic
13 concern; or to units of local government or economic
14 development organizations serving an unincorporated area
15 within a Round II Federal Rural Enterprise Community. Requests
16 for loans shall be made by application to the Office of
17 Tourism, Trade, and Economic Development. Loans shall be made
18 pursuant to agreements specifying the terms and conditions
19 agreed to between the applicant local government and the
20 Office of Tourism, Trade, and Economic Development. The loans
21 shall be the legal obligations of the applicant local
22 government. All repayments of principal and interest shall be
23 returned to the loan fund and made available for loans to
24 other applicants. However, in a rural area of critical
25 economic concern designated by the Governor, and upon approval
26 by the Office of Tourism, Trade, and Economic Development,
27 repayments of principal and interest may be retained by the
28 applicant a unit of local government if such repayments are
29 dedicated and matched to fund regionally based economic
30 development organizations representing the rural area of
31 critical economic concern.
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1 Section 11. Subsection (6) of section 288.0656,
2 Florida Statutes, is amended to read:
3 288.0656 Rural Economic Development Initiative.--
4 (6)(a) By No later than August 1 of each year, 1999,
5 the head of each of the following agencies and organizations
6 shall designate a high-level staff person from within the
7 agency or organization to serve as the REDI representative for
8 the agency or organization:
9 1. The Department of Community Affairs.
10 2. The Department of Transportation.
11 3. The Department of Environmental Protection.
12 4. The Department of Agriculture and Consumer
13 Services.
14 5. The Department of State.
15 6. The Department of Health.
16 7. The Department of Children and Family Services.
17 8. The Department of Corrections.
18 9. The Agency for Workforce Innovation Department of
19 Labor and Employment Security.
20 10. The Department of Education.
21 11. The Department of Juvenile Justice.
22 12.11. The Fish and Wildlife Conservation Commission.
23 13.12. Each water management district.
24 14.13. Enterprise Florida, Inc.
25 15. Workforce Florida, Inc.
26 16.14. The Florida Commission on Tourism or VISIT
27 Florida.
28 17.15. The Florida Regional Planning Council
29 Association.
30 18.16. The Florida State Rural Development Council.
31
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1 19.17. The Institute of Food and Agricultural Sciences
2 (IFAS).
3
4 An alternate for each designee shall also be chosen, and the
5 names of the designees and alternates shall be sent to the
6 director of the Office of Tourism, Trade, and Economic
7 Development.
8 (b) Each REDI representative must have comprehensive
9 knowledge of his or her agency's functions, both regulatory
10 and service in nature, and of the state's economic goals,
11 policies, and programs. This person shall be the primary point
12 of contact for his or her agency with REDI on issues and
13 projects relating to economically distressed rural communities
14 and with regard to expediting project review, shall ensure a
15 prompt effective response to problems arising with regard to
16 rural issues, and shall work closely with the other REDI
17 representatives in the identification of opportunities for
18 preferential awards of program funds and allowances and waiver
19 of program requirements when necessary to encourage and
20 facilitate long-term private capital investment and job
21 creation.
22 (c) The REDI representatives shall work with REDI in
23 the review and evaluation of statutes and rules for adverse
24 impact on rural communities and the development of alternative
25 proposals to mitigate that impact.
26 (d) Each REDI representative shall be responsible for
27 ensuring that each district office or facility of his or her
28 agency is informed about the Rural Economic Development
29 Initiative and for providing assistance throughout the agency
30 in the implementation of REDI activities.
31
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1 Section 12. Section 288.1088, Florida Statutes, is
2 amended to read:
3 288.1088 Quick Action Closing Fund.--
4 (1)(a) The Legislature finds that attracting,
5 retaining, and providing favorable conditions for the growth
6 of certain high-impact business facilities, privately
7 developed critical rural infrastructure, or key facilities in
8 economically distressed urban or rural communities which
9 provide provides widespread economic benefits to the public
10 through high-quality employment opportunities in such
11 facilities or and in related facilities attracted to the
12 state, through the increased tax base provided by the
13 high-impact facility and related businesses in related
14 sectors, through an enhanced entrepreneurial climate in the
15 state and the resulting business and employment opportunities,
16 and through the stimulation and enhancement of the state's
17 universities and community colleges. In the global economy,
18 there exists serious and fierce international competition for
19 these facilities, and in most instances, when all available
20 resources for economic development have been used, the state
21 continues to encounter severe competitive disadvantages in
22 vying for these high-impact business facilities. Florida's
23 rural areas must provide a competitive environment for
24 business in the information age. This often requires an
25 incentive to make it feasible for private investors to provide
26 infrastructure in those areas.
27 (b) The Legislature therefore declares that sufficient
28 resources shall be available to respond to extraordinary
29 economic opportunities and to compete effectively for these
30 high-impact business facilities, critical private
31
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1 infrastructure in rural areas, and key businesses in
2 economically distressed urban or rural communities.
3 (2) There is created within the Office of Tourism,
4 Trade, and Economic Development the Quick Action Closing Fund.
5 (3)(a) Enterprise Florida, Inc., shall evaluate
6 individual proposals for high-impact business facilities and
7 forward recommendations regarding the use of moneys in the
8 fund for such facilities to the director of the Office of
9 Tourism, Trade, and Economic Development. Such evaluation and
10 recommendation must include, but need not be limited to:
11 1. A description of the type of facility or
12 infrastructure, its operations business operation, and the
13 associated product or service associated with the facility.
14 2. The number of full-time-equivalent jobs that will
15 be created by the facility and the total estimated average
16 annual wages of those jobs or, in the case of privately
17 developed rural infrastructure, the types of business
18 activities and jobs stimulated by the investment.
19 3. The cumulative amount of investment to be dedicated
20 to the facility within a specified period.
21 4. A statement of any special impacts the facility is
22 expected to stimulate in a particular business sector in the
23 state or regional economy or in the state's universities and
24 community colleges.
25 5. A statement of the role the incentive is expected
26 to play in the decision of the applicant business to locate or
27 expand in this state or for the private investor to provide
28 critical rural infrastructure.
29 (b) Upon receipt of the evaluation and recommendation
30 from Enterprise Florida, Inc., the director shall recommend
31 approval or disapproval of a project for receipt of funds from
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1 the Quick Action Closing Fund to the Governor. In recommending
2 a project high-impact business facility, the director shall
3 include proposed performance conditions that the project
4 facility must meet to obtain incentive funds. The Governor
5 shall consult with the President of the Senate and the Speaker
6 of the House of Representatives before giving final approval
7 for a project. The Executive Office of the Governor shall
8 recommend approval of a project and release of funds pursuant
9 to the legislative consultation and review requirements set
10 forth in s. 216.177. The recommendation must include proposed
11 performance conditions the project must meet to obtain funds.
12 (c) Upon the approval of the Governor, the director of
13 the Office of Tourism, Trade, and Economic Development and the
14 high-impact business shall enter into a contract that sets
15 forth the conditions for payment of moneys from the fund. The
16 contract must include the total amount of funds awarded; the
17 performance conditions that must be met to obtain the award,
18 including, but not limited to, net new employment in the
19 state, average salary, and total capital investment;
20 demonstrate a baseline of current service and a measure of
21 enhanced capability; the methodology for validating
22 performance; the schedule of payments from the fund; and
23 sanctions for failure to meet performance conditions.
24 (d) Enterprise Florida, Inc., shall validate
25 contractor performance. Such validation shall be reported
26 within 6 months after completion of the contract to the
27 Governor, President of the Senate, and the Speaker of the
28 House of Representatives.
29 Section 13. Subsection (2) of section 288.9015,
30 Florida Statutes, is amended to read:
31 288.9015 Enterprise Florida, Inc.; purpose; duties.--
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1 (2) It shall be the responsibility of Enterprise
2 Florida, Inc., to aggressively market Florida's rural
3 communities, economically distressed rural communities, and
4 economically distressed urban communities as locations for
5 potential new investment, to aggressively assist in the
6 retention and expansion of existing businesses in these
7 communities, and to aggressively assist these communities in
8 the identification and development of new economic development
9 opportunities for job creation.
10 (a) Enterprise Florida, Inc., shall develop a detailed
11 plan for the coordinated marketing of and use of federal,
12 state, and local programs designed to improve conditions in
13 economically distressed communities, including, but not
14 limited to, the Enterprise Zone Program under chapter 290, the
15 Front Porch Florida Initiative administered by the Office of
16 Urban Opportunity under s. 14.2015, and the Toolkit for
17 Economic Development created under chapter 2000-290, Laws of
18 Florida.
19 (b) The plan must include both strategic and operating
20 components, including provisions for:
21 1. Educating existing, expanding, and new and
22 relocating businesses about economically distressed
23 communities and specially designated areas, such as those
24 designated under the Enterprise Zone Program or Front Porch
25 Florida Initiative, as potential sites for investment;
26 2. Informing such businesses about the availability of
27 incentives that are designed specifically to encourage
28 investment in such communities and specially designated areas;
29 and
30 3. Using as fully as practicable general
31 economic-development incentives in such communities and
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1 specially designated areas, such as the tax-refund program for
2 qualified target industry businesses under s. 288.106,
3 high-impact performance grants under s. 288.108, the Quick
4 Action Closing Fund under s. 288.1088, and contracts for
5 transportation projects under s. 288.063.
6 (c) Enterprise Florida, Inc., shall develop measures
7 to assess changes in the level of economic investment in
8 economically distressed communities and in specially
9 designated areas, such as enterprise zones and Front Porch
10 Florida communities, and shall report data on performance
11 related to the measures as part of the annual report required
12 under s. 288.906. Enterprise Florida, Inc., may recommend
13 inclusion of the measures developed under this paragraph in
14 the Legislature's annual process under chapter 216 of
15 reviewing agency performance measures. In addition, Enterprise
16 Florida, Inc., may recommend to the Legislature a method for
17 weighting the measures developed under this paragraph as being
18 more important than other measures of the economic-development
19 organization's performance.
20 (d) In carrying out the provisions of this subsection,
21 Enterprise Florida, Inc., shall consult and coordinate with
22 other agencies and organizations engaged in activities related
23 to economically distressed communities, including, but not
24 limited to:
25 1. The Department of Community Affairs;
26 2. The Office of Tourism, Trade, and Economic
27 Development;
28 3. The Office of Urban Opportunity;
29 4. Workforce Florida, Inc.; and
30 5. The Rural Economic Development Initiative.
31
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1 (e) Working with the organizations specified in
2 paragraph (d), Enterprise Florida, Inc., shall maximize
3 opportunities to combine and leverage economic-development
4 programs, designations, and initiatives in order to secure
5 job-creating projects for economically distressed communities.
6 Section 14. Section 290.004, Florida Statutes, is
7 amended to read:
8 290.004 Definitions relating to Florida Enterprise
9 Zone Act.--As used in ss. 290.001-290.016:
10 (1) "Community investment corporation" means a black
11 business investment corporation, a certified development
12 corporation, a small business investment corporation, or other
13 similar entity incorporated under Florida law that has limited
14 its investment policy to making investments solely in minority
15 business enterprises.
16 (2) "Department" means the Department of Commerce.
17 (3) "Director" means the director of the Office of
18 Tourism, Trade, and Economic Development.
19 (4) "Governing body" means the council or other
20 legislative body charged with governing the county or
21 municipality.
22 (5) "Interagency coordinating council" means the
23 Enterprise Zone Interagency Coordinating Council created
24 pursuant to s. 290.009.
25 (6) "Minority business enterprise" has the same
26 meaning as in s. 288.703.
27 (7) "Office" means the Office of Tourism, Trade, and
28 Economic Development.
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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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 or s. 290.0065(5)(b),
5 is considered to be a rural enterprise zone.
6 (9)(8) "Secretary" means the Secretary of Commerce.
7 (10)(9) "Small business" has the same meaning as in s.
8 288.703.
9 Section 15. Section 290.0065, Florida Statutes, is
10 amended to read:
11 290.0065 State designation of enterprise zones.--
12 (1) Upon application of the governing body of a county
13 or municipality or of a county and one or more municipalities
14 jointly pursuant to s. 290.0055, Enterprise Florida, Inc., and
15 the office department, in consultation with the interagency
16 coordinating council, shall determine which areas nominated by
17 such governing bodies meet the criteria outlined in s.
18 290.0055 and are the most appropriate for designation as state
19 enterprise zones. The office department is authorized to
20 designate up to 5 areas within each of the categories
21 established in subparagraphs (3)(a)1., 2., 3., 4., and 5.,
22 except that the office department may only designate a total
23 of 20 areas as enterprise zones. The office department shall
24 not designate more than three enterprise zones in any one
25 county. All designations, including any provision for
26 redesignations, of state enterprise zones pursuant to this
27 section shall be effective July 1, 1995.
28 (2) Each application made pursuant to s. 290.0055
29 shall be ranked competitively within the appropriate category
30 established pursuant to subsection (3) based on the pervasive
31 poverty, unemployment, and general distress of the area; the
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1 strategic plan, including local fiscal and regulatory
2 incentives, prepared pursuant to s. 290.0057; and the
3 prospects for new investment and economic development in the
4 area. Pervasive poverty, unemployment, and general distress
5 shall be weighted 35 percent; strategic plan and local fiscal
6 and regulatory incentives shall be weighted 40 percent; and
7 prospects for new investment and economic development in the
8 area shall be weighted 25 percent.
9 (3)(a) Each area designated as an enterprise zone
10 pursuant to this section shall be placed in one of the
11 following categories based on the 1990 census:
12 1. Communities consisting of census tracts in areas
13 having a total population of 150,000 persons or more.
14 2. Communities consisting of census tracts in areas
15 having a total population of 50,000 persons or more but less
16 than 150,000 persons.
17 3. Communities having a population of 20,000 persons
18 or more but less than 50,000 persons.
19 4. Communities having a population of 7,500 persons or
20 more but less than 20,000 persons.
21 5. Communities having a population of less than 7,500
22 persons.
23 (b) Any area authorized to be an enterprise zone by
24 both a county and a municipality shall be placed in the
25 appropriate category established under paragraph (a) in which
26 an application by the municipality would have been considered
27 if the municipality had acted alone, if at least 60 percent of
28 the population of the area authorized to be an enterprise zone
29 resides within the municipality. An area authorized to be an
30 enterprise zone by a county and one or more municipalities
31 shall be placed in the category in which an application by the
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1 municipality with the highest percentage of residents in such
2 area would have been considered if such municipality had
3 authorized the area to be an enterprise zone. An area
4 authorized to be an enterprise zone by a county as defined by
5 s. 125.011(1) shall be placed in the category in which an
6 application by the municipality in which the area is located
7 would have been considered if the municipality had authorized
8 such area to be an enterprise zone. An area authorized to be
9 an enterprise zone by a county as defined by s. 125.011(1)
10 which area is located in two or more municipalities shall be
11 placed in the category in which an application by the
12 municipality with the highest percentage of residents in such
13 area would have been considered if such municipality had
14 authorized such area to be an enterprise zone.
15 (4)(a) Notwithstanding s. 290.0055, any area existing
16 as a state enterprise zone as of the effective date of this
17 section and originally approved through a joint application
18 from a county and municipality, or through an application from
19 a county as defined in s. 125.011(1), shall be redesignated as
20 a state enterprise zone upon the creation of an enterprise
21 zone development agency pursuant to s. 290.0056 and the
22 completion of a strategic plan pursuant to s. 290.0057. Any
23 area redesignated pursuant to this subsection, other than an
24 area located in a county defined in s. 125.011(1), may be
25 relocated or modified by the appropriate governmental bodies.
26 Such relocation or modification shall be identified in the
27 strategic plan and shall meet the requirements for designation
28 as established by s. 290.005. Any relocation or modification
29 shall be submitted on or before June 1, 1996.
30 (b) The office department shall place any area
31 designated as a state enterprise zone pursuant to this
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1 subsection in the appropriate category established in
2 subsection (3), and include such designations within the
3 limitations on state enterprise zone designations set out in
4 subsection (1).
5 (c) Any county or municipality having jurisdiction
6 over an area designated as a state enterprise zone pursuant to
7 this subsection, other than a county defined by s. 125.011(1),
8 may not apply for designation of another area.
9 (5) Notwithstanding s. 290.0055, an area designated as
10 a federal empowerment zone or enterprise community pursuant to
11 Title XIII of the Omnibus Budget Reconciliation Act of 1993,
12 the Taxpayer Relief Act of 1997, or the 1999 Agricultural
13 Appropriations Act shall be designated a state enterprise zone
14 as follows:
15 (a) An area designated as an urban empowerment zone or
16 urban enterprise community pursuant to Title XIII of the
17 Omnibus Budget Reconciliation Act of 1993 or the Taxpayer
18 Relief Act of 1997 shall be designated a state enterprise zone
19 by the office department upon completion of the requirements
20 set out in paragraph (d), except in the case of a county as
21 defined in s. 125.011(1) which, notwithstanding s. 290.0055,
22 may incorporate and include such designated urban empowerment
23 zone or urban enterprise community areas within the boundaries
24 of its state enterprise zones without any limitation as to
25 size.
26 (b) An area designated as a rural empowerment zone or
27 rural enterprise community pursuant to Title XIII of the
28 Omnibus Budget Reconciliation Act of 1993 or the 1999
29 Agricultural Appropriations Act shall be designated a state
30 rural enterprise zone by the office department upon completion
31 of the requirements set out in paragraph (d) and may
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1 incorporate and include such designated rural empowerment zone
2 or rural enterprise community within the boundaries of its
3 state enterprise zones without any limitation as to size.
4 (c) Any county or municipality having jurisdiction
5 over an area designated as a state enterprise zone pursuant to
6 this subsection, other than a county defined in s. 125.011(1),
7 may not apply for designation of another area.
8 (d) Prior to designating such areas as state
9 enterprise zones, the office department shall ensure that the
10 governing body having jurisdiction over the zone submits the
11 strategic plan required pursuant to 7 C.F.R. part 25 or 24
12 C.F.R. part 597 to the office department, and creates an
13 enterprise zone development agency pursuant to s. 290.0056.
14 (e) The office department shall place any area
15 designated as a state enterprise zone pursuant to this
16 subsection in the appropriate category established in
17 subsection (3), and include such designations within the
18 limitations on state enterprise zone designations set out in
19 subsection (1).
20 (6)(a) The office department, in consultation with
21 Enterprise Florida, Inc., and the interagency coordinating
22 council, may develop guidelines shall promulgate any rules
23 necessary for the approval of areas under this section by the
24 director secretary.
25 (b) Such guidelines rules shall provide for the
26 measurement of pervasive poverty, unemployment, and general
27 distress using the criteria outlined by s. 290.0058.
28 (c) Such guidelines rules shall provide for the
29 evaluation of the strategic plan and local fiscal and
30 regulatory incentives for effectiveness, including how the
31
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1 following key principles will be implemented by the governing
2 body or bodies:
3 1. Economic opportunity, including job creation within
4 the community and throughout the region, as well as
5 entrepreneurial initiatives, small business expansion, and
6 training for jobs that offer upward mobility.
7 2. Sustainable community development that advances the
8 creation of livable and vibrant communities through
9 comprehensive approaches that coordinate economic, physical,
10 community, and human development.
11 3. Community-based partnerships involving the
12 participation of all segments of the community.
13 4. Strategic vision for change that identifies how the
14 community will be revitalized. This vision should include
15 methods for building on community assets and coordinate a
16 response to community needs in a comprehensive fashion. This
17 vision should provide goals and performance benchmarks for
18 measuring progress and establish a framework for evaluating
19 and adjusting the strategic plan.
20 5. Local fiscal and regulatory incentives enacted
21 pursuant to s. 290.0057(1)(e). These incentives should induce
22 economic revitalization, including job creation and small
23 business expansion.
24 (d) Such guidelines may rules shall provide methods
25 for evaluating the prospects for new investment and economic
26 development in the area, including a review and evaluation of
27 any previous state enterprise zones located in the area.
28 (7) Upon approval by the director secretary of a
29 resolution authorizing an area to be an enterprise zone
30 pursuant to this section, the office department shall assign a
31 unique identifying number to that resolution. The office
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1 department shall provide the Department of Revenue and
2 Enterprise Florida, Inc., with a copy of each resolution
3 approved, together with its identifying number.
4 (8)(a) Notwithstanding s. 290.0055, any area existing
5 as a state enterprise zone as of December 30, 1994, which has
6 received at least $1 million in state community development
7 funds and at least $500,000 in federal community development
8 funds, which has less than 300 businesses located within the
9 boundaries of the enterprise zone, and which has been
10 designated by the United States Department of Agriculture as a
11 "Champion Community" shall be redesignated as a state
12 enterprise zone upon the creation of an enterprise zone
13 development agency pursuant to s. 290.0056 and the completion
14 of a strategic plan pursuant to s. 290.0057.
15 (b) Such designation shall be in addition to the
16 limitations of state enterprise zone designation set out in
17 subsection (1).
18 (9) The Office of Tourism, Trade, and Economic
19 Development may amend the boundaries of any enterprise zone
20 designated by the state pursuant to this section, consistent
21 with the categories, criteria, and limitations imposed in this
22 section upon the establishment of such enterprise zone and
23 only if consistent with the determinations made in s.
24 290.0058(2).
25 (9)(10) Before December 31, 1998, the governing body
26 of a county in which an enterprise zone designated pursuant to
27 paragraph (5)(b) is located may apply to the Office of
28 Tourism, Trade, and Economic Development to amend the
29 boundaries of the enterprise zone for the purpose of replacing
30 areas not suitable for development. The Office of Tourism,
31 Trade, and Economic Development shall approve the application
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1 if it does not increase the overall size of the enterprise
2 zone. Except that upon the request of the governing body of a
3 home rule charter county, or any county the government of
4 which has been consolidated with the government of one or more
5 municipalities in accordance with s. 9, Art. VIII of the State
6 Constitution of 1885, as preserved by s. 6(e), Art. VIII of
7 the State Constitution as revised in 1968 and subsequently
8 amended, the Office of Tourism, Trade, and Economic
9 Development may amend the boundaries of an area designated as
10 an enterprise zone upon the receipt of a resolution adopted by
11 such governing body describing the amended boundaries, so long
12 as the added area does not increase the overall size of the
13 expanded zone more than its original size or 20 square miles,
14 whichever is larger, and is consistent with the categories,
15 criteria, and limitations imposed by s. 290.0055.
16 (10)(11) Before December 31, 1999, any county as
17 defined in s. 125.011(1) may create a satellite enterprise
18 zone not exceeding 3 square miles in area outside of and,
19 notwithstanding anything contained in s. 290.0055(4) or
20 elsewhere, in addition to the previously designated 20 square
21 miles of enterprise zones. The Office of Tourism, Trade, and
22 Economic Development shall amend the boundaries of the areas
23 previously designated by any such county as enterprise zones
24 upon the receipt of a resolution adopted by such governing
25 body describing the satellite enterprise zone, as long as the
26 additional area is consistent with the categories, criteria,
27 and limitations imposed by s. 290.0055, provided that the
28 20-square-mile limitation and the requirements imposed by s.
29 290.0055(4)(d) do not apply to such satellite enterprise zone.
30 (11) Before June 1, 2002, the governing body of a
31 municipality that is located within a county having a
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1 population under 225,000 and in which an enterprise zone
2 designated under subparagraph (3)(a)2. is located may apply to
3 the Office of Tourism, Trade, and Economic Development to
4 change the boundaries of the enterprise zone. The Office of
5 Tourism, Trade, and Economic Development shall approve the
6 application if the boundary change does not increase the
7 overall size of the enterprise zone and if any territory added
8 to the enterprise zone as a result of the boundary change is
9 contiguous to the remaining area of the existing enterprise
10 zone.
11 Section 16. Subsection (1) of section 290.0066,
12 Florida Statutes, is amended to read:
13 290.0066 Revocation of enterprise zone designation.--
14 (1) The director must may revoke the designation of an
15 enterprise zone if the director determines that:
16 (a) The governing body or bodies:
17 1.(a) Have failed to make progress in achieving the
18 benchmarks set forth in the strategic plan; or
19 2.(b) Have not complied substantially with the
20 strategic plan; or.
21 3. Are requesting to voluntarily revoke their zone
22 designation; or
23 (b) The zone is determined by research evaluations
24 under s. 290.015(1) to no longer meet the poverty requirements
25 under s. 290.0058.
26 Section 17. Section 290.00676, Florida Statutes, is
27 created to read:
28 290.00676 Amendment of rural enterprise zone
29 boundaries.--Notwithstanding any other law, upon
30 recommendation by Enterprise Florida, Inc., the Office of
31 Tourism, Trade, and Economic Development may approve requests
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1 to amend the boundaries of rural enterprise zones as defined
2 in s. 290.004(8). Boundary amendments authorized by this
3 section are subject to the following requirements:
4 (1) The amendment may increase the size of the rural
5 enterprise zone up to a maximum zone size of 20 square miles.
6 (2) The amendment may increase the zone's number of
7 noncontiguous areas by one, if the additional noncontiguous
8 area has zero population. For purposes of this subsection, the
9 pervasive poverty criteria may be set aside for the addition
10 of a noncontiguous area.
11 (3) The local enterprise zone development agency must
12 request the amendment from Enterprise Florida, Inc., prior to
13 December 30, 2001. The request must contain maps and
14 sufficient information to allow the office to determine the
15 number of noncontiguous areas and the total size of the rural
16 enterprise zone.
17 Section 18. Section 290.00677, Florida Statutes, is
18 created to read:
19 290.00677 Rural enterprise zones; special
20 qualifications.--
21 (1) Notwithstanding the enterprise zone residency
22 requirements set out in s. 212.096(1)(c), eligible businesses
23 as defined by s. 212.096(1)(a), located in rural enterprise
24 zones as defined by s. 290.004, may receive the basic minimum
25 credit provided under s. 212.096 for creating a new job and
26 hiring a person residing within the jurisdiction of a rural
27 county, as defined by s. 288.106(1)(r). All other provisions
28 of s. 212.096, including, but not limited to, those relating
29 to the award of enhanced credits, apply to such businesses.
30 (2) Notwithstanding the enterprise zone residency
31 requirements set out in s. 220.03(1)(q), eligible businesses
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1 as defined by s. 212.096(1)(a), located in rural enterprise
2 zones as defined in s. 290.004, may receive the basic minimum
3 credit provided under s. 220.181 for creating a new job and
4 hiring a person residing within the jurisdiction of a rural
5 county, as defined by s. 288.106(1)(r). All other provisions
6 of s. 220.181, including, but not limited to, those relating
7 to the award of enhanced credits apply to such businesses.
8 Section 19. Section 290.00694, Florida Statutes, is
9 created to read:
10 290.00694 Enterprise zone designation for rural
11 communities.--An area designated as a rural champion community
12 under the Taxpayer Relief Act of 1997 or a community within a
13 designated rural area of critical economic concern under s.
14 288.0656 may submit an application to Enterprise Florida,
15 Inc., for review and recommendation to the office for
16 designation as an enterprise zone. The application must be
17 submitted by December 31, 2001. Notwithstanding the provisions
18 of s. 290.0065 limiting the total number of enterprise zones
19 designated and the number of enterprise zones within a
20 population category, the Office of Tourism, Trade, and
21 Economic Development may designate enterprise zones under this
22 section. Upon completion of the requirements set out in s.
23 290.0065(5)(d), the Office of Tourism, Trade, and Economic
24 Development shall establish the initial effective date of the
25 enterprise zones designated pursuant to this section. Only one
26 community in each county in a rural area of critical economic
27 concern may be designated as an enterprise zone.
28 Section 20. Enterprise zone designation for
29 Hillsborough County.--Hillsborough County may apply to the
30 Office of Tourism, Trade, and Economic Development for
31 designation of one enterprise zone within the county, which
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1 zone encompasses a high-crime, low-income, high-unemployment
2 area that is north of Fowler Avenue, south of Bearss Avenue,
3 east of Florida Avenue, west of Bruce B. Downs Boulevard, near
4 the University of South Florida, adjacent to University Square
5 Mall, north of a major theme park, an area that has been
6 designated a federal Weed & Seed target area, and a Community
7 Development Block Grant target area and that houses an active
8 public/private 501(c)(3) community development corporation
9 working to improve the area. The application must be submitted
10 by December 31, 2002, and must comply with the requirements of
11 section 290.0055, Florida Statutes. Notwithstanding the
12 provisions of section 290.0065, Florida Statutes, limiting the
13 total number of enterprise zones designated and the number of
14 enterprise zones within a population category, the Office of
15 Tourism, Trade, and Economic Development may designate one
16 enterprise zone under this section. The Office of Tourism,
17 Trade, and Economic Development shall establish the initial
18 effective date of the enterprise zone designated under this
19 section.
20 Section 21. Subsection (3) of section 290.007, Florida
21 Statutes, is amended to read:
22 290.007 State incentives available in enterprise
23 zones.--The following incentives are provided by the state to
24 encourage the revitalization of enterprise zones:
25 (3) The community contribution tax credits provided in
26 ss. 212.08, 220.183, and 624.5105.
27 Section 22. Section 290.015, Florida Statutes, is
28 amended to read:
29 290.015 Evaluation and review.--
30 (1) Prior to January 1, 2003 1995, Enterprise Florida,
31 Inc., the department shall create prescribe by rule, subject
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1 to the approval of the Auditor General, a research design for
2 the review and evaluation of ss. 290.001-290.016, together
3 with the incentives listed in s. 290.007. The research design
4 shall be used to determine which enterprise zones shall be
5 revoked pursuant to s. 290.0066. The research design shall
6 evaluate for revocation the three least active rural
7 enterprise zones and the three least active urban enterprise
8 zones. The research design shall evaluate which zones do not
9 meet the poverty requirements under s. 290.0058 and propose
10 that those zones be revoked pursuant to s. 290.0066. The
11 research design shall set forth the types of additional
12 information necessary to effectuate the research design. Such
13 information shall be provided in the report required pursuant
14 to s. 290.014(2).
15 (2) Prior to the 2005 2000 Regular Session of the
16 Legislature, the Auditor General shall perform a review and
17 evaluation of ss. 290.001-290.016, together with the
18 incentives listed in s. 290.007, using the research design
19 adopted promulgated pursuant to subsection (1). The report
20 shall critique the enterprise zone program and shall include
21 an analysis of the state incentives listed under s. 290.007
22 and determine a minimum of six zones to be revoked pursuant to
23 s. 290.0066. The report shall determine if the enterprise zone
24 program has produced enough positive results in alleviating
25 state poverty to recommend its continuation. A report of the
26 findings and recommendations of the Auditor General shall be
27 submitted to the President of the Senate and the Speaker of
28 the House of Representatives prior to the 2005 2000 Regular
29 Session. Before or during the 2005 Regular Session, the
30 appropriate committees of the Senate and House of
31
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1 Representatives shall complete consider legislation to
2 implement the recommendations of the Auditor General.
3 (3) Prior to the 2001 Regular Session of the
4 Legislature, the appropriate substantive committees of both
5 the Senate and the House of Representatives, upon assignment
6 by the President and Speaker, respectively, shall be
7 responsible for the completion of a review and evaluation of
8 ss. 290.001-290.016, together with the incentives listed in s.
9 290.007.
10 Section 23. Subsection (7) is added to section
11 290.048, Florida Statutes, to read:
12 290.048 General powers of Department of Community
13 Affairs under ss. 290.0401-290.049.--The department has all
14 the powers necessary or appropriate to carry out the purposes
15 and provisions of the program, including the power to:
16 (7) Establish advisory committees and solicit
17 participation in the design, implementation, and evaluation of
18 the program and its linkages with other housing and
19 community-development resources.
20 Section 24. Section 290.049, Florida Statutes, is
21 repealed.
22 Section 25. Subsection (4) of section 370.28, Florida
23 Statutes, is repealed.
24 Section 26. Subsections (15) and (19) of section
25 420.503, Florida Statutes, are amended to read:
26 420.503 Definitions.--As used in this part, the term:
27 (15) "Elderly" means persons 62 years of age or older,
28 provided, however, that this definition does not prohibit
29 housing from being deemed housing for the elderly as defined
30 in subsection (19) if such housing otherwise meets the
31 requirements of subsection (19).
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1 (19) "Housing for the elderly" means, for purposes of
2 s. 420.5087(3)(c)2., any nonprofit housing community that is
3 financed by a mortgage loan made or insured by the United
4 States Department of Housing and Urban Development under s.
5 202, s. 202 with a s. 8 subsidy, s. 221(d)(3) or (4), or s.
6 236 of the National Housing Act, as amended, and that is
7 subject to income limitations established by the United States
8 Department of Housing and Urban Development, or any program
9 funded by the Rural Development Agency of the United States
10 Department of Agriculture and subject to income limitations
11 established by the United States Department of Agriculture. A
12 project which qualifies for an exemption under the Fair
13 Housing Act as housing for older persons as defined by s.
14 760.29(4) shall qualify as housing for the elderly for
15 purposes of s. 420.5087(3)(c)2. and for purposes of any loans
16 made under s. 420.508. In addition, if the corporation adopts
17 a qualified allocation plan pursuant to s. 42(m)(1)(B) of the
18 Internal Revenue Code or any other rules that prioritize
19 projects targeting the elderly for purposes of allocating tax
20 credits pursuant to s. 420.5099 or for purposes of the HOME
21 program under s. 420.5089, a project which qualifies for an
22 exemption under the Fair Housing Act as housing for older
23 persons as defined by s. 760.29(4) shall qualify as a project
24 targeted for the elderly, if the project satisfies the other
25 requirements set forth in this part.
26 Section 27. Subsection (39) is added to section
27 420.507, Florida Statutes, to read:
28 420.507 Powers of the corporation.--The corporation
29 shall have all the powers necessary or convenient to carry out
30 and effectuate the purposes and provisions of this part,
31
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1 including the following powers which are in addition to all
2 other powers granted by other provisions of this part:
3 (39) To create recognition programs to honor
4 individuals, community-based development organizations, units
5 of local government, or others who have demonstrated the
6 ideals of community stewardship and increased access to
7 housing for low-income households, including their stewardship
8 in economically distressed areas. Such programs may
9 incorporate certificates of recognition by the Governor and
10 may include presentation by the Governor or his
11 representative.
12 Section 28. Paragraph (a) of subsection (1) of section
13 420.5088, Florida Statutes, is amended to read:
14 420.5088 Florida Homeownership Assistance
15 Program.--There is created the Florida Homeownership
16 Assistance Program for the purpose of assisting low-income
17 persons in purchasing a home by reducing the cost of the home
18 with below-market construction financing, by reducing the
19 amount of down payment and closing costs paid by the borrower
20 to a maximum of 5 percent of the purchase price, or by
21 reducing the monthly payment to an affordable amount for the
22 purchaser. Loans shall be made available at an interest rate
23 that does not exceed 3 percent. The balance of any loan is due
24 at closing if the property is sold or transferred.
25 (1) For loans made available pursuant to s.
26 420.507(23)(a)1. or 2.:
27 (a) The corporation may underwrite and make those
28 mortgage loans through the program to persons or families who
29 are eligible to participate in the corporation's single-family
30 mortgage revenue bond programs and who have incomes that do
31 not exceed 80 percent of the state or local median income,
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1 whichever is greater, adjusted for family size. If the
2 corporation determines that there is insufficient demand for
3 such loans by persons or families who are eligible to
4 participate in the corporation's single-family mortgage
5 revenue bond programs, the corporation may make such mortgage
6 loans to other persons or families who have incomes that do
7 not exceed 80 percent of the state or local median income,
8 whichever amount is greater.
9 Section 29. Subsection (11) of section 420.5092,
10 Florida Statutes, is amended to read:
11 420.5092 Florida Affordable Housing Guarantee
12 Program.--
13 (11) The maximum total amount of revenue bonds that
14 may be issued by the corporation pursuant to subsection (5) is
15 $400 million $200 million.
16 Section 30. Subsections (1), (2), (4), and (5) of
17 section 624.5105, Florida Statutes, are amended to read:
18 624.5105 Community contribution tax credit;
19 authorization; limitations; eligibility and application
20 requirements; administration; definitions; expiration.--
21 (1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
22 (a) There shall be allowed a credit of 50 percent of a
23 community contribution against any tax due for a calendar year
24 under s. 624.509 or s. 624.510.
25 (b) No insurer shall receive more than $200,000 in
26 annual tax credits for all approved community contributions
27 made in any one year.
28 (c) The total amount of tax credit which may be
29 granted for all programs approved under this section, s.
30 212.08(5)(q), and s. 220.183 is $20 $10 million annually.
31
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1 (d) Each proposal for the granting of such tax credit
2 requires the prior approval of the director.
3 (e) If the credit granted pursuant to this section is
4 not fully used in any one year because of insufficient tax
5 liability on the part of the insurer, the unused amount may be
6 carried forward for a period not to exceed 5 years. The
7 carryover credit may be used in a subsequent year when the tax
8 imposed by s. 624.509 or s. 624.510 for such year exceeds the
9 credit under this section for such year.
10 (2) ELIGIBILITY REQUIREMENTS.--
11 (a) Each community contribution by an insurer must be
12 in a form specified in subsection (5).
13 (b) Each community contribution must be reserved
14 exclusively for use in a project as defined in s.
15 220.03(1)(t).
16 (c) The project must be undertaken by an "eligible
17 sponsor," as which term is defined in s. 220.183(2)(c). as:
18 1. A community action program;
19 2. A community development corporation;
20 3. A neighborhood housing services corporation;
21 4. A local housing authority created pursuant to
22 chapter 421;
23 5. A community redevelopment agency created pursuant
24 to s. 163.356;
25 6. The Florida Industrial Development Corporation;
26 7. A historic preservation district agency or
27 organization;
28 8. A private industry council;
29 9. An enterprise zone development agency created
30 pursuant to s. 290.0057; or
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1 10. Such other agency as the director may, from time
2 to time, designate by rule.
3
4 In no event shall a contributing insurer have a financial
5 interest in the eligible sponsor.
6 (d) The project shall be located in an area designated
7 as an enterprise zone or a Front Porch Community pursuant to
8 s. 14.2015(9)(b) s. 290.0065. Any project designed to
9 construct or rehabilitate housing for low-income or
10 very-low-income households as defined in s. 420.9071(19) and
11 (28) low-income housing is exempt from the area requirement of
12 this paragraph.
13 (4) ADMINISTRATION.--
14 (a)1. The Office of Tourism, Trade, and Economic
15 Development is authorized to adopt all rules necessary to
16 administer this section, including rules for the approval or
17 disapproval of proposals by insurers.
18 2. The decision of the director shall be in writing,
19 and, if approved, the proposal shall state the maximum credit
20 allowable to the insurer. A copy of the decision shall be
21 transmitted to the executive director of the Department of
22 Revenue, who shall apply such credit to the tax liability of
23 the insurer.
24 3. The office shall monitor all projects periodically,
25 in a manner consistent with available resources to ensure that
26 resources are utilized in accordance with this section;
27 however, each project shall be reviewed no less frequently
28 than once every 2 years.
29 4. The Office of Tourism, Trade, and Economic
30 Development shall, in consultation with the Department of
31 Community Affairs, the Florida Housing Finance Corporation,
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1 and the statewide and regional housing and financial
2 intermediaries, market the availability of the community
3 contribution tax credit program to community-based
4 organizations.
5 (b) The Department of Revenue shall adopt any rules
6 necessary to ensure the orderly implementation and
7 administration of this section.
8 (5) DEFINITIONS.--For the purpose of this section:
9 (a) "Community contribution" means the grant by an
10 insurer of any of the following items:
11 1. Cash or other liquid assets.
12 2. Real property.
13 3. Goods or inventory.
14 4. Other physical resources which are identified by
15 the department.
16 (b) "Director" means the director of the Office of
17 Tourism, Trade, and Economic Development.
18 (c) "Local government" means any county or
19 incorporated municipality in the state.
20 (d) "Office" means the Office of Tourism, Trade, and
21 Economic Development.
22 (e) "Project" means an activity as defined in s.
23 220.03(1)(t). any activity undertaken by an eligible sponsor,
24 as defined in subsection (2), which is designed to construct,
25 improve, or substantially rehabilitate housing or commercial,
26 industrial, or public resources and facilities or to improve
27 entrepreneurial and job-development opportunities for
28 low-income persons.
29 Section 31. Subsections (1) and (2) of section
30 163.356, Florida Statutes, are amended to read:
31 163.356 Creation of community redevelopment agency.--
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1 (1) Upon a finding of necessity as set forth in s.
2 163.355, and upon a further finding that there is a need for a
3 community redevelopment agency to function in the county or
4 municipality to carry out the community redevelopment purposes
5 of this part, any county or municipality may create a public
6 body corporate and politic to be known as a "community
7 redevelopment agency." A county or municipality having a
8 population equal to or greater than 50,000 may create, by a
9 vote of at least a majority plus one of the entire governing
10 body of the county or municipality, more than one community
11 redevelopment agency. Each such agency shall be constituted as
12 a public instrumentality, and the exercise by a community
13 redevelopment agency of the powers conferred by this part
14 shall be deemed and held to be the performance of an essential
15 public function. The Community redevelopment agencies agency
16 of a county have has the power to function within the
17 corporate limits of a municipality only as, if, and when the
18 governing body of the municipality has by resolution concurred
19 in the community redevelopment plan or plans proposed by the
20 governing body of the county.
21 (2) When the governing body adopts a resolution
22 declaring the need for a community redevelopment agency, that
23 body shall, by ordinance, appoint a board of commissioners of
24 the community redevelopment agency, which shall consist of not
25 fewer than five or more than seven commissioners. However, the
26 governing body of a municipality with a population of more
27 than 100,000 and an area of more than 100 square miles may
28 appoint a board of commissioners of up to nine members. The
29 terms of office of the commissioners shall be for 4 years,
30 except that three of the members first appointed shall be
31 designated to serve terms of 1, 2, and 3 years, respectively,
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1 from the date of their appointments, and all other members
2 shall be designated to serve for terms of 4 years from the
3 date of their appointments. A vacancy occurring during a term
4 shall be filled for the unexpired term.
5 Section 32. Beginning in fiscal year 2001-2002 and
6 continuing through fiscal year 2008-2009 the sum of $225,000
7 in recurring general revenue is appropriated from the General
8 Revenue Fund to the Department of Community Affairs to
9 implement section 290.0491(4), Florida Statutes. The funds
10 must be distributed by the department to each sponsoring
11 designee within the state which was awarded in the January
12 1999 Agricultural Appropriations Act the Rural Enterprise
13 Community Designation. From these funds, at least $220,000,
14 but not more than $225,000, must be distributed to a rural
15 sponsoring designee or a rural enterprise community. The funds
16 must be used for the benefit of the nominated area under the
17 enterprise community regulations and by section 290.0491,
18 Florida Statutes.
19 Section 33. Except as otherwise expressly provided in
20 this act, this act shall take effect July 1, 2001.
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 SB 1216
3
4 The committee substitute:
5 1. Allows a museum education project located in an
enterprise zone to receive community contribution tax
6 credits for educational programs and materials in
conjunction with its actual zone building project.
7
2. Provides an incentive for part-time workers to be
8 upgraded to full-time if a new full-time job is created,
for purposes of the enterprise zone jobs tax credit.
9
3. Allows leased employees from an employee leasing company
10 to be considered new employees for the jobs tax credits
provided they are employed for an average of at least 36
11 hours per week for more than 6 months.
12 4. Recreates a prior incentive to hire welfare transition
program participants in the jobs tax credit program and
13 provides an additional incentive for higher wages.
14 5. Allows a community in a rural area of critical economic
concern to participate in the rural job tax credit
15 program at the tier-three level.
16 6. Allows federal rural enterprise communities to access
the Rural Community Development Revolving Loan Fund
17 Program.
18 7. Revises the responsibilities of Enterprise Florida, Inc.
(EFI), relating to rural and distressed urban
19 communities. Directs EFI to develop a plan for marketing
programs and initiatives designed to enhance conditions
20 in economically distressed communities and provides some
required components of the plan.
21
8. Allows a particular enterprise zone to change its
22 boundaries and requires the Office of Tourism, Trade,
and Economic Development (OTTED) to approve the
23 application if the boundary change does not increase the
overall size of the enterprise zone and if the new area
24 remains contiguous to the remaining area of the existing
enterprise zone.
25
9. Authorizes the Department of Community Affairs to merge
26 various advisory councils into one advisory committee to
provide a more comprehensive approach to addressing
27 community needs and allowing for a broad and more
diversified membership.
28
10. Revises the definitions of the terms "elderly" and
29 "housing for the elderly" under the Florida Housing
Finance Act. Revises authority and eligibility criteria
30 for certain loans made by the Florida Housing Finance
Corporation under the Florida Homeownership Assistance
31 Program. Increases the amount of revenue bonds that may
be issued under the Florida Affordable Housing Guarantee
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1 Program.
2 11. Allows Hillsborough County to apply to OTTED for
designation of one enterprise zone, which encompasses a
3 high-crime, low-income, high-unemployment area.
4 12. Requires EFI to create a research design to be used in
the review of the Enterprise Zone Act prior to January
5 1, 2002. Requires a review of the enterprise zone
program by the Auditor General and a report of which
6 zones are not active or do not meet poverty
requirements, and provides for a recommendation of which
7 zones are to be revoked. Requires the report to
determine if the enterprise zone program has produced
8 enough positive results in alleviating state poverty to
recommend its continuation, with the results to be
9 presented to the Senate and the House of Representatives
before the 2005 regular session. Requires the director
10 of OTTED to revoke the designation of an enterprise zone
if the zone is determined to no longer meet the poverty
11 requirements as specified in statute or is determined by
research evaluations under s. 290.015(1), F.S., to be
12 one of three urban or three rural zones that are the
least active in use of the Enterprise Zone Program.
13 Provides for voluntary revocation of a zone designation.
14 13. Allows certain counties or municipalities to create more
than one community redevelopment agency and revises the
15 number of members on a community redevelopment board in
a certain municipality.
16
14. Appropriates $225,000 in recurring General Revenue
17 through FY 2008-2009 to the Department of Community
Affairs to implement the Florida Empowerment Zone Act,
18 with the funds to be used for federally designated rural
enterprise communities.
19
15. Makes a number of technical and conforming revisions to
20 the bill.
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