Senate Bill sb1216c1

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    Florida Senate - 2001                           CS for SB 1216

    By the Committee on Commerce and Economic Opportunities





    310-1650-01

  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

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    Florida Senate - 2001                           CS for SB 1216
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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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    Florida Senate - 2001                           CS for SB 1216
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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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    Florida Senate - 2001                           CS for SB 1216
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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

31

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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.
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    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.
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    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.
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    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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