HOUSE AMENDMENT
                                                  Bill No. HB 1225   Barcode 933717
    Amendment No. 01 (for drafter's use only)
                            CHAMBER ACTION
              Senate                               House
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 4  ______________________________________________________________
 5                                           ORIGINAL STAMP BELOW
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10  ______________________________________________________________
11  The Committee on Economic Development & International Trade
12  offered the following:
13  
14         Amendment (with title amendment) 
15  Remove from the bill:  Everything after the enacting clause
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17  and insert in lieu thereof:  Paragraphs (g) and (h) of
18  subsection (5) of section 212.08, Florida Statutes, are
19  amended, and paragraph (q) is added to that subsection, to
20  read:
21         212.08  Sales, rental, use, consumption, distribution,
22  and storage tax; specified exemptions.--The sale at retail,
23  the rental, the use, the consumption, the distribution, and
24  the storage to be used or consumed in this state of the
25  following are hereby specifically exempt from the tax imposed
26  by this chapter.
27         (5)  EXEMPTIONS; ACCOUNT OF USE.--
28         (g)  Building materials used in the rehabilitation of
29  real property located in an enterprise zone.--
30         1.  Beginning July 1, 1995, building materials used in
31  the rehabilitation of real property located in an enterprise
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    File original & 9 copies    03/28/01                          
    hbt0002                     04:33 pm         01225-edit-933717

HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 zone shall be exempt from the tax imposed by this chapter upon 2 an affirmative showing to the satisfaction of the department 3 that the items have been used for the rehabilitation of real 4 property located in an enterprise zone. Except as provided in 5 subparagraph 2., this exemption inures to the owner, lessee, 6 or lessor of the rehabilitated real property located in an 7 enterprise zone only through a refund of previously paid 8 taxes. To receive a refund pursuant to this paragraph, the 9 owner, lessee, or lessor of the rehabilitated real property 10 located in an enterprise zone must file an application under 11 oath with the governing body or enterprise zone development 12 agency having jurisdiction over the enterprise zone where the 13 business is located, as applicable, which includes: 14 a. The name and address of the person claiming the 15 refund. 16 b. An address and assessment roll parcel number of the 17 rehabilitated real property in an enterprise zone for which a 18 refund of previously paid taxes is being sought. 19 c. A description of the improvements made to 20 accomplish the rehabilitation of the real property. 21 d. A copy of the building permit issued for the 22 rehabilitation of the real property. 23 e. A sworn statement, under the penalty of perjury, 24 from the general contractor licensed in this state with whom 25 the applicant contracted to make the improvements necessary to 26 accomplish the rehabilitation of the real property, which 27 statement lists the building materials used in the 28 rehabilitation of the real property, the actual cost of the 29 building materials, and the amount of sales tax paid in this 30 state on the building materials. In the event that a general 31 contractor has not been used, the applicant shall provide this 2 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 information in a sworn statement, under the penalty of 2 perjury. Copies of the invoices which evidence the purchase of 3 the building materials used in such rehabilitation and the 4 payment of sales tax on the building materials shall be 5 attached to the sworn statement provided by the general 6 contractor or by the applicant. Unless the actual cost of 7 building materials used in the rehabilitation of real property 8 and the payment of sales taxes due thereon is documented by a 9 general contractor or by the applicant in this manner, the 10 cost of such building materials shall be an amount equal to 40 11 percent of the increase in assessed value for ad valorem tax 12 purposes. 13 f. The identifying number assigned pursuant to s. 14 290.0065 to the enterprise zone in which the rehabilitated 15 real property is located. 16 g. A certification by the local building code 17 inspector that the improvements necessary to accomplish the 18 rehabilitation of the real property are substantially 19 completed. 20 h. Whether the business is a small business as defined 21 by s. 288.703(1). 22 i. If applicable, the name and address of each 23 permanent employee of the business, including, for each 24 employee who is a resident of an enterprise zone, the 25 identifying number assigned pursuant to s. 290.0065 to the 26 enterprise zone in which the employee resides. 27 2. This exemption inures to a city, county, or other 28 governmental agency, or nonprofit community-based organization 29 through a refund of previously paid taxes if the building 30 materials used in the rehabilitation of real property located 31 in an enterprise zone are paid for from the funds of a 3 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 community development block grant, State Housing Initiatives 2 Partnership Program, or similar grant or loan program. To 3 receive a refund pursuant to this paragraph, a city, county, 4 or other governmental agency, or nonprofit community-based 5 organization must file an application which includes the same 6 information required to be provided in subparagraph 1. by an 7 owner, lessee, or lessor of rehabilitated real property. In 8 addition, the application must include a sworn statement 9 signed by the chief executive officer of the city, county, or 10 other governmental agency, or nonprofit community-based 11 organization seeking a refund which states that the building 12 materials for which a refund is sought were paid for from the 13 funds of a community development block grant, State Housing 14 Initiatives Partnership Program, or similar grant or loan 15 program. 16 3. Within 10 working days after receipt of an 17 application, the governing body or enterprise zone development 18 agency shall review the application to determine if it 19 contains all the information required pursuant to subparagraph 20 1. or subparagraph 2. and meets the criteria set out in this 21 paragraph. The governing body or agency shall certify all 22 applications that contain the information required pursuant to 23 subparagraph 1. or subparagraph 2. and meet the criteria set 24 out in this paragraph as eligible to receive a refund. If 25 applicable, the governing body or agency shall also certify if 26 20 percent of the employees of the business are residents of 27 an enterprise zone, excluding temporary and part-time 28 employees. The certification shall be in writing, and a copy 29 of the certification shall be transmitted to the executive 30 director of the Department of Revenue. The applicant shall be 31 responsible for forwarding a certified application to the 4 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 department within the time specified in subparagraph 4. 2 4. An application for a refund pursuant to this 3 paragraph must be submitted to the department within 6 months 4 after the rehabilitation of the property is deemed to be 5 substantially completed by the local building code inspector 6 or within 90 days after the rehabilitated property is first 7 subject to assessment. 8 5. The provisions of s. 212.095 do not apply to any 9 refund application made pursuant to this paragraph. No more 10 than one exemption through a refund of previously paid taxes 11 for the rehabilitation of real property shall be permitted for 12 any one parcel of real property. No refund shall be granted 13 pursuant to this paragraph unless the amount to be refunded 14 exceeds $500. No refund granted pursuant to this paragraph 15 shall exceed the lesser of 97 percent of the Florida sales or 16 use tax paid on the cost of the building materials used in the 17 rehabilitation of the real property as determined pursuant to 18 sub-subparagraph 1.e. or $5,000, or, if no less than 20 19 percent of the employees of the business are residents of an 20 enterprise zone, excluding temporary and part-time employees, 21 the amount of refund granted pursuant to this paragraph shall 22 not exceed the lesser of 97 percent of the sales tax paid on 23 the cost of such building materials or $10,000. A refund 24 approved pursuant to this paragraph shall be made within 30 25 days of formal approval by the department of the application 26 for the refund. 27 6. The department shall adopt rules governing the 28 manner and form of refund applications and may establish 29 guidelines as to the requisites for an affirmative showing of 30 qualification for exemption under this paragraph. 31 7. The department shall deduct an amount equal to 10 5 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 percent of each refund granted under the provisions of this 2 paragraph from the amount transferred into the Local 3 Government Half-cent Sales Tax Clearing Trust Fund pursuant to 4 s. 212.20 for the county area in which the rehabilitated real 5 property is located and shall transfer that amount to the 6 General Revenue Fund. 7 8. For the purposes of the exemption provided in this 8 paragraph: 9 a. "Building materials" means tangible personal 10 property which becomes a component part of improvements to 11 real property. 12 b. "Real property" has the same meaning as provided in 13 s. 192.001(12). 14 c. "Rehabilitation of real property" means the 15 reconstruction, renovation, restoration, rehabilitation, 16 construction, or expansion of improvements to real property. 17 d. "Substantially completed" has the same meaning as 18 provided in s. 192.042(1). 19 9. The provisions of this paragraph shall expire and 20 be void on December 31, 2005. 21 (h) Business property used in an enterprise zone.-- 22 1. Beginning July 1, 1995, business property purchased 23 for use by businesses located in an enterprise zone which is 24 subsequently used in an enterprise zone shall be exempt from 25 the tax imposed by this chapter. This exemption inures to the 26 business only through a refund of previously paid taxes. A 27 refund shall be authorized upon an affirmative showing by the 28 taxpayer to the satisfaction of the department that the 29 requirements of this paragraph have been met. 30 2. To receive a refund, the business must file under 31 oath with the governing body or enterprise zone development 6 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 agency having jurisdiction over the enterprise zone where the 2 business is located, as applicable, an application which 3 includes: 4 a. The name and address of the business claiming the 5 refund. 6 b. The identifying number assigned pursuant to s. 7 290.0065 to the enterprise zone in which the business is 8 located. 9 c. A specific description of the property for which a 10 refund is sought, including its serial number or other 11 permanent identification number. 12 d. The location of the property. 13 e. The sales invoice or other proof of purchase of the 14 property, showing the amount of sales tax paid, the date of 15 purchase, and the name and address of the sales tax dealer 16 from whom the property was purchased. 17 f. Whether the business is a small business as defined 18 by s. 288.703(1). 19 g. If applicable, the name and address of each 20 permanent employee of the business, including, for each 21 employee who is a resident of an enterprise zone, the 22 identifying number assigned pursuant to s. 290.0065 to the 23 enterprise zone in which the employee resides. 24 3. Within 10 working days after receipt of an 25 application, the governing body or enterprise zone development 26 agency shall review the application to determine if it 27 contains all the information required pursuant to subparagraph 28 2. and meets the criteria set out in this paragraph. The 29 governing body or agency shall certify all applications that 30 contain the information required pursuant to subparagraph 2. 31 and meet the criteria set out in this paragraph as eligible to 7 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 receive a refund. If applicable, the governing body or agency 2 shall also certify if 20 percent of the employees of the 3 business are residents of an enterprise zone, excluding 4 temporary and part-time employees. The certification shall be 5 in writing, and a copy of the certification shall be 6 transmitted to the executive director of the Department of 7 Revenue. The business shall be responsible for forwarding a 8 certified application to the department within the time 9 specified in subparagraph 4. 10 4. An application for a refund pursuant to this 11 paragraph must be submitted to the department within 6 months 12 after the tax is due on the business property that is 13 purchased. 14 5. The provisions of s. 212.095 do not apply to any 15 refund application made pursuant to this paragraph. The amount 16 refunded on purchases of business property under this 17 paragraph shall be the lesser of 97 percent of the sales tax 18 paid on such business property or $5,000, or, if no less than 19 20 percent of the employees of the business are residents of 20 an enterprise zone, excluding temporary and part-time 21 employees, the amount refunded on purchases of business 22 property under this paragraph shall be the lesser of 97 23 percent of the sales tax paid on such business property or 24 $10,000. A refund approved pursuant to this paragraph shall be 25 made within 30 days of formal approval by the department of 26 the application for the refund. No refund shall be granted 27 under this paragraph unless the amount to be refunded exceeds 28 $100 in sales tax paid on purchases made within a 60-day time 29 period. 30 6. The department shall adopt rules governing the 31 manner and form of refund applications and may establish 8 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 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 9 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 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 10 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 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 11 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 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. This 7 paragraph does not preclude projects that propose to construct 8 or rehabilitate housing for low-income or very-low-income 9 households on scattered sites. The Office of Tourism, Trade, 10 and Economic Development may reserve up to 50 percent of the 11 available annual tax credits for housing for very-low-income 12 households pursuant to s. 420.9071(28) for the first 6 months 13 of the fiscal year. With respect to housing, contributions may 14 be used to pay the following eligible low-income and 15 very-low-income housing-related activities: 16 (I) Project development impact and management fees for 17 low-income or very-low-income housing projects; 18 (II) Down payment and closing costs for eligible 19 persons, as defined in s. 420.9071(19) and (28); 20 (III) Administrative costs, including housing 21 counseling and marketing fees, not to exceed 10 percent of the 22 community contribution, directly related to low-income or 23 very-low-income projects; and 24 (IV) Removal of liens recorded against residential 25 property by municipal, county, or special-district local 26 governments when satisfaction of the lien is a necessary 27 precedent to the transfer of the property to an eligible 28 person, as defined in s. 420.9071(19) and (28), for the 29 purpose of promoting home ownership. Contributions for lien 30 removal must be received from a nonrelated third party. 31 c. The project must be undertaken by an "eligible 12 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 sponsor," which includes: 2 (I) A community action program; 3 (II) A nonprofit community-based development 4 organization whose mission is the provision of housing for 5 low-income or very-low-income households or increasing 6 entrepreneurial and job-development opportunities for 7 low-income persons; 8 (III) A neighborhood housing services corporation; 9 (IV) A local housing authority created under chapter 10 421; 11 (V) A community redevelopment agency created under s. 12 163.356; 13 (VI) The Florida Industrial Development Corporation; 14 (VII) An historic preservation district agency or 15 organization; 16 (VIII) A regional workforce board; 17 (IX) A direct-support organization as provided in s. 18 240.551; 19 (X) An enterprise zone development agency created 20 under s. 290.0056; 21 (XI) A community-based organization incorporated under 22 chapter 617 which is recognized as educational, charitable, or 23 scientific pursuant to s. 501(c)(3) of the Internal Revenue 24 Code and whose by-laws and articles of incorporation include 25 affordable housing, economic development, or community 26 development as the primary mission of the corporation; 27 (XII) Units of local government; 28 (XIII) Units of state government; or 29 (XIV) Any other agency that the Office of Tourism, 30 Trade, and Economic Development designates by rule. 31 13 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 In no event may a contributing person have a financial 2 interest in the eligible sponsor. 3 d. The project must be located in an area designated 4 an enterprise zone or a Front Porch Florida community pursuant 5 to s. 14.2015(9)(b), unless the project increases access to 6 high-speed broadband capability for rural communities with 7 enterprise zones but is physically located outside the 8 designated rural zone boundaries. Any project designed to 9 construct or rehabilitate housing for low-income or 10 very-low-income households as defined in s. 420.0971(19) and 11 (28) is exempt from the area requirement of this 12 sub-subparagraph. 13 3. Application requirements.-- 14 a. Any eligible sponsor seeking to participate in this 15 program must submit a proposal to the Office of Tourism, 16 Trade, and Economic Development which sets forth the name of 17 the sponsor, a description of the project and the area in 18 which the project is located, together with such supporting 19 information as is prescribed by rule. The proposal must also 20 contain a resolution from the local governmental unit in which 21 the project is located certifying that the project is 22 consistent with local plans and regulations. 23 b. Any person seeking to participate in this program 24 must submit an application for tax credit to the Office of 25 Tourism, Trade, and Economic Development which sets forth the 26 name of the sponsor, a description of the project, and the 27 type, value, and purpose of the contribution. The sponsor 28 shall verify the terms of the application and indicate its 29 receipt of the contribution, which verification must be in 30 writing and accompany the application for tax credit. The 31 person must submit a separate tax credit application to the 14 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 office for each individual contribution that it makes to each 2 individual project. 3 c. Any person who has received notification from the 4 Office of Tourism, Trade, and Economic Development that a tax 5 credit has been approved must apply to the department to 6 receive the refund. Application must be made on the form 7 prescribed for claiming refunds of sales and use taxes and be 8 accompanied by a copy of the notification. A person may submit 9 only one application for refund to the department within any 10 12-month period. 11 4. Administration.-- 12 a. The Office of Tourism, Trade, and Economic 13 Development may adopt rules pursuant to ss. 120.536(1) and 14 120.54 necessary to administer this paragraph, including rules 15 for the approval or disapproval of proposals by a person. 16 b. The decision of the Office of Tourism, Trade, and 17 Economic Development must be in writing, and, if approved, the 18 notification shall state the maximum credit allowable to the 19 person. Upon approval, the office shall transmit a copy of the 20 decision to the Department of Revenue. 21 c. The Office of Tourism, Trade, and Economic 22 Development shall periodically monitor all projects in a 23 manner consistent with available resources to ensure that 24 resources are used in accordance with this paragraph; however, 25 each project must be reviewed at least once every 2 years. 26 d. The Office of Tourism, Trade, and Economic 27 Development shall, in consultation with the Department of 28 Community Affairs, the Florida Housing Finance Corporation, 29 and the statewide and regional housing and financial 30 intermediaries, market the availability of the community 31 contribution tax credit program to community-based 15 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 organizations. 2 5. Expiration.--This paragraph expires June 30, 2005; 3 however, any accrued credit carryover that is unused on that 4 date may be used until the expiration of the 3-year carryover 5 period for such credit. 6 Section 1. Effective January 1, 2002, section 212.096, 7 Florida Statutes, is amended to read: 8 212.096 Sales, rental, storage, use tax; enterprise 9 zone jobs credit against sales tax.-- 10 (1) For the purposes of the credit provided in this 11 section: 12 (a) "Eligible business" means any sole proprietorship, 13 firm, partnership, corporation, bank, savings association, 14 estate, trust, business trust, receiver, syndicate, or other 15 group or combination, or successor business, located in an 16 enterprise zone. The business must demonstrate to the 17 department that the total number of full-time jobs defined 18 under paragraph (d) has increased from the average of the 19 previous 12 months. The term "eligible business" includes a 20 business that added a minimum of five new full-time jobs in an 21 enterprise zone between July 1, 2000, and December 31, 2001. 22 An eligible business does not include any business which has 23 claimed the credit permitted under s. 220.181 for any new 24 business employee first beginning employment with the business 25 after July 1, 1995. 26 (b) "Month" means either a calendar month or the time 27 period from any day of any month to the corresponding day of 28 the next succeeding month or, if there is no corresponding day 29 in the next succeeding month, the last day of the succeeding 30 month. 31 (c) "New employee" means a person residing in an 16 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 enterprise zone, a qualified Job Training Partnership Act 2 classroom training participant, or a participant in the 3 welfare transition program participant who begins employment 4 with an eligible business after July 1, 1995, and who has not 5 been previously employed full-time within the preceding 12 6 months by the eligible business, or a successor eligible 7 business, claiming the credit allowed by this section. 8 (d) "Jobs" means full-time positions, as consistent 9 with terms used by the Agency for Workforce Innovation and the 10 United States Department of Labor for purposes of unemployment 11 compensation tax administration and employment estimation 12 resulting directly from a business operation in this state. 13 This number may not include temporary construction jobs 14 involved with the construction of facilities or any jobs that 15 have previously been included in any application for tax 16 credits under s. 220.181(1). The term "jobs" also includes 17 employment of an employee leased from an employee leasing 18 company licensed under chapter 468 if such employee has been 19 continuously leased to the employer for an average of at least 20 36 hours per week for more than 6 months. 21 (e) "New job has been created" means that the total 22 number of full-time jobs has increased in an enterprise zone 23 from the average of the previous 12 months, as demonstrated to 24 the department by a business located in the enterprise zone. 25 26 A person shall be deemed to be employed if the person performs 27 duties in connection with the operations of the business on a 28 regular, full-time basis, provided the person is performing 29 such duties for an average of at least 36 hours per week each 30 month, or a part-time basis, provided the person is performing 31 such duties for an average of at least 20 hours per week each 17 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 month throughout the year. The person must be performing such 2 duties at a business site located in the enterprise zone. 3 (2)(a) It is the legislative intent to encourage the 4 provision of meaningful employment opportunities which will 5 improve the quality of life of those employed and to encourage 6 economic expansion of enterprise zones and the state. 7 Therefore, beginning January July 1, 2002 1995, upon an 8 affirmative showing by an eligible a business to the 9 satisfaction of the department that the requirements of this 10 section have been met, the business shall be allowed a credit 11 against the tax remitted under this chapter. 12 (b) The credit shall be computed as 20 follows: 13 1. Ten percent of the actual monthly wages paid in 14 this state to each new employee hired when a new job has been 15 created, unless the business is located within a rural 16 enterprise zone pursuant to s. 290.004(8), in which case the 17 credit shall be 30 percent of the actual monthly wages paid 18 whose wages do not exceed $1,500 a month. If no less than 20 19 percent of the employees of the business are residents of an 20 enterprise zone, excluding temporary and part-time employees, 21 the credit shall be computed as 30 15 percent of the actual 22 monthly wages paid in this state to each new employee hired 23 when a new job has been created, unless the business is 24 located within a rural enterprise zone, in which case the 25 credit shall be 45 percent of the actual monthly wages paid.; 26 2. Five percent of the first $1,500 of actual monthly 27 wages paid in this state for each new employee whose wages 28 exceed $1,500 a month; or 29 3. Fifteen percent of the first $1,500 of actual 30 monthly wages paid in this state for each new employee who is 31 a WAGES Program participant pursuant to chapter 414. 18 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 2 For purposes of this paragraph, monthly wages shall be 3 computed as one-twelfth of the expected annual wages paid to 4 such employee. The amount paid as wages to a new employee is 5 the compensation paid to such employee that is subject to 6 unemployment tax. The credit shall be allowed for up to 24 12 7 consecutive months, beginning with the first tax return due 8 pursuant to s. 212.11 after approval by the department. 9 (3) In order to claim this credit, an eligible 10 business must file under oath with the governing body or 11 enterprise zone development agency having jurisdiction over 12 the enterprise zone where the business is located, as 13 applicable, a statement which includes: 14 (a) For each new employee for whom this credit is 15 claimed, the employee's name and place of residence, including 16 the identifying number assigned pursuant to s. 290.0065 to the 17 enterprise zone in which the employee resides if the new 18 employee is a person residing in an enterprise zone, and, if 19 applicable, documentation that the employee is a qualified Job 20 Training Partnership Act classroom training participant or a 21 welfare transition program participant. 22 (b) If applicable, the name and address of each 23 permanent employee of the business, including, for each 24 employee who is a resident of an enterprise zone, the 25 identifying number assigned pursuant to s. 290.0065 to the 26 enterprise zone in which the employee resides. 27 (c) The name and address of the eligible business. 28 (d) The starting salary or hourly wages paid to the 29 new employee. 30 (e) Demonstration to the department that the total 31 number of full-time jobs defined under paragraph (1)(d) has 19 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 increased in an enterprise zone from the average of the 2 previous 12 months. 3 (f)(e) The identifying number assigned pursuant to s. 4 290.0065 to the enterprise zone in which the business is 5 located. 6 (g)(f) Whether the business is a small business as 7 defined by s. 288.703(1). 8 (h)(g) Within 10 working days after receipt of an 9 application, the governing body or enterprise zone development 10 agency shall review the application to determine if it 11 contains all the information required pursuant to this 12 subsection and meets the criteria set out in this section. The 13 governing body or agency shall certify all applications that 14 contain the information required pursuant to this subsection 15 and meet the criteria set out in this section as eligible to 16 receive a credit. If applicable, the governing body or agency 17 shall also certify if 20 percent of the employees of the 18 business are residents of an enterprise zone, excluding 19 temporary and part-time employees. The certification shall be 20 in writing, and a copy of the certification shall be 21 transmitted to the executive director of the Department of 22 Revenue. The business shall be responsible for forwarding a 23 certified application to the department within the time 24 specified in paragraph (i) (h). 25 (i)(h) All applications for a credit pursuant to this 26 section must be submitted to the department within 6 4 months 27 after the new employee is hired. 28 (4) Within 10 working days after receipt of a 29 completed application for a credit authorized in this section, 30 the department shall inform the business that the application 31 has been approved. The credit may be taken on the first return 20 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 due after receipt of approval from the department. 2 (5)(4) In the event the application is incomplete or 3 insufficient to support the credit authorized in this section, 4 the department shall deny the credit and notify the business 5 of that fact. The business may reapply for this credit. 6 (6)(5) The credit provided in this section does not 7 apply: 8 (a) For any new employee who is an owner, partner, or 9 stockholder of an eligible business. 10 (b) For any new employee who is employed for any 11 period less than 3 full calendar months. 12 (7)(6) The credit provided in this section shall not 13 be allowed for any month in which the tax due for such period 14 or the tax return required pursuant to s. 212.11 for such 15 period is delinquent. 16 (8)(7) In the event an eligible business has a credit 17 larger than the amount owed the state on the tax return for 18 the time period in which the credit is claimed, the amount of 19 the credit for that time period shall be the amount owed the 20 state on that tax return. 21 (9)(8) Any business which has claimed this credit 22 shall not be allowed any credit under the provisions of s. 23 220.181 for any new employee beginning employment after July 24 1, 1995. 25 (10)(9) It shall be the responsibility of each 26 business to affirmatively demonstrate to the satisfaction of 27 the department that it meets the requirements of this section. 28 (11)(10) Any person who fraudulently claims this 29 credit is liable for repayment of the credit plus a mandatory 30 penalty of 100 percent of the credit plus interest at the rate 31 provided in this chapter, and such person is guilty of a 21 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 misdemeanor of the second degree, punishable as provided in s. 2 775.082 or s. 775.083. 3 (12)(11) The provisions of this section, except for 4 subsection (11) (10), shall expire and be void on December 31, 5 2005. 6 Section 2. Effective January 1, 2002, section 212.098, 7 Florida Statutes, is amended to read: 8 212.098 Rural Job Tax Credit Program.-- 9 (1) As used in this section, the term: 10 (a) "Eligible business" means any sole proprietorship, 11 firm, partnership, or corporation that is located in a 12 qualified county and is predominantly engaged in, or is 13 headquarters for a business predominantly engaged in, 14 activities usually provided for consideration by firms 15 classified within the following standard industrial 16 classifications: SIC 01-SIC 09 (agriculture, forestry, and 17 fishing); SIC 20-SIC 39 (manufacturing); SIC 422 (public 18 warehousing and storage); SIC 70 (hotels and other lodging 19 places); SIC 7391 (research and development); SIC 7992 (public 20 golf courses); and SIC 7996 (amusement parks); and a targeted 21 industry eligible for the qualified target industry business 22 tax refund under s. 288.106. A call center or similar customer 23 service operation that services a multistate market or an 24 international market is also an eligible business. In 25 addition, the Office of Tourism, Trade, and Economic 26 Development may, as part of its final budget request submitted 27 pursuant to s. 216.023, recommend additions to or deletions 28 from the list of standard industrial classifications used to 29 determine an eligible business, and the Legislature may 30 implement such recommendations. Excluded from eligible 31 receipts are receipts from retail sales, except such receipts 22 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 for hotels and other lodging places classified in SIC 70, 2 public golf courses in SIC 7992, and amusement parks in SIC 3 7996. For purposes of this paragraph, the term 4 "predominantly" means that more than 50 percent of the 5 business's gross receipts from all sources is generated by 6 those activities usually provided for consideration by firms 7 in the specified standard industrial classification. The 8 determination of whether the business is located in a 9 qualified county and the tier ranking of that county must be 10 based on the date of application for the credit under this 11 section. Commonly owned and controlled entities are to be 12 considered a single business entity. 13 (b) "Qualified employee" means any employee of an 14 eligible business who performs duties in connection with the 15 operations of the business on a regular, full-time basis for 16 an average of at least 36 hours per week for at least 3 months 17 within the qualified county in which the eligible business is 18 located. The term also includes an employee leased from an 19 employee leasing company licensed under chapter 468, if such 20 employee has been continuously leased to the employer for an 21 average of at least 36 hours per week for more than 6 months. 22 An owner or partner of the eligible business is not a 23 qualified employee. 24 (c) "Qualified area county" means any area that is 25 contained within a rural area of critical economic concern 26 designated under s. 288.0656, a county that has a population 27 of fewer than 75,000 persons, or any county that has a 28 population of 100,000 or less and is contiguous to a county 29 that has a population of less than 75,000, selected in the 30 following manner: every third year, the Office of Tourism, 31 Trade, and Economic Development shall rank and tier the 23 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 state's counties according to the following four factors: 2 1. Highest unemployment rate for the most recent 3 36-month period. 4 2. Lowest per capita income for the most recent 5 36-month period. 6 3. Highest percentage of residents whose incomes are 7 below the poverty level, based upon the most recent data 8 available. 9 4. Average weekly manufacturing wage, based upon the 10 most recent data available. 11 12 Tier-one qualified counties are those ranked 1-5 and represent 13 the state's least-developed counties according to this 14 ranking. Tier-two qualified counties are those ranked 6-10, 15 and tier-three counties are those ranked 11-17. 16 Notwithstanding this definition, "qualified county" also means 17 a county that contains an area that has been designated as a 18 federal Enterprise Community pursuant to the 1999 Agricultural 19 Appropriations Act. Such a designated area shall be ranked in 20 tier three until the areas are reevaluated by the Office of 21 Tourism, Trade, and Economic Development. 22 (d) "New business" means any eligible business first 23 beginning operation on a site in a qualified county and 24 clearly separate from any other commercial or business 25 operation of the business entity within a qualified county. A 26 business entity that operated an eligible business within a 27 qualified county within the 48 months before the period 28 provided for application by subsection (2) is not considered a 29 new business. 30 (e) "Existing business" means any eligible business 31 that does not meet the criteria for a new business. 24 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 (2) A new eligible business may apply for a tax credit 2 under this subsection once at any time during its first year 3 of operation. A new eligible business in a tier-one qualified 4 area that county which has at least 10 qualified employees on 5 the date of application shall receive a $1,000 $1,500 tax 6 credit for each such employee. A new eligible business in a 7 tier-two qualified county which has at least 20 qualified 8 employees on the date of application shall receive a $1,000 9 tax credit for each such employee. A new eligible business in 10 a tier-three qualified county which has at least 30 qualified 11 employees on the date of application shall receive a $500 tax 12 credit for each such employee. 13 (3) An existing eligible business may apply for a tax 14 credit under this subsection at any time it is entitled to 15 such credit, except as restricted by this subsection. An 16 existing eligible business with fewer than 50 employees in a 17 tier-one qualified area that county which on the date of 18 application has at least 20 percent 5 more qualified employees 19 than it had 1 year prior to its date of application shall 20 receive a $1,000 $1,500 tax credit for each such additional 21 employee. An existing eligible business that has 50 employees 22 or more in a qualified area that, on the date of application, 23 has at least 10 more qualified employees than it had 1 year 24 prior to its date of application shall receive a $1,000 tax 25 credit for each additional employee. in a tier-two qualified 26 county which on the date of application has at least 10 more 27 qualified employees than it had 1 year prior to its date of 28 application shall receive a $1,000 credit for each such 29 additional employee. An existing business in a tier-three 30 qualified county which on the date of application has at least 31 15 more qualified employees than it had 1 year prior to its 25 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 date of application shall receive a $500 tax credit for each 2 such additional employee. An existing business may apply for 3 the credit under this subsection no more than once in any 4 12-month period. Any existing eligible business that received 5 a credit under subsection (2) may not apply for the credit 6 under this subsection sooner than 12 months after the 7 application date for the credit under subsection (2). 8 (4) For any new eligible business receiving a credit 9 pursuant to subsection (2), an additional $500 credit shall be 10 provided for any qualified employee who is a welfare 11 transition program participant. For any existing eligible 12 business receiving a credit pursuant to subsection (3), an 13 additional $500 credit shall be provided for any qualified 14 employee who is a welfare transition program participant. Such 15 employee must be employed on the application date and have 16 been employed less than 1 year. This credit shall be in 17 addition to other credits pursuant to this section regardless 18 of the tier-level of the county. Appropriate documentation 19 concerning the eligibility of an employee for this credit must 20 be submitted as determined by the department. 21 (5) To be eligible for a tax credit under subsection 22 (3), the number of qualified employees employed 1 year prior 23 to the application date must be no lower than the number of 24 qualified employees on the application date on which a credit 25 under this section was based for any previous application, 26 including an application under subsection (2). 27 (6)(a) In order to claim this credit, an eligible 28 business must file under oath with the Office of Tourism, 29 Trade, and Economic Development a statement that includes the 30 name and address of the eligible business, the starting salary 31 or hourly wages paid to the new employee, and any other 26 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 information that the Department of Revenue requires. 2 (b) Within 30 working days after receipt of an 3 application for credit, the Office of Tourism, Trade, and 4 Economic Development shall review the application to determine 5 whether it contains all the information required by this 6 subsection and meets the criteria set out in this section. 7 Subject to the provisions of paragraph (c), the Office of 8 Tourism, Trade, and Economic Development shall approve all 9 applications that contain the information required by this 10 subsection and meet the criteria set out in this section as 11 eligible to receive a credit. 12 (c) The maximum credit amount that may be approved 13 during any calendar year is $5 million. The Department of 14 Revenue, in conjunction with the Office of Tourism, Trade, and 15 Economic Development, shall notify the governing bodies in 16 areas designated as qualified counties when the $5 million 17 maximum amount has been reached. Applications must be 18 considered for approval in the order in which they are 19 received without regard to whether the credit is for a new or 20 existing business. This limitation applies to the value of 21 the credit as contained in approved applications. Approved 22 credits may be taken in the time and manner allowed pursuant 23 to this section. 24 (d) A business may not receive more than $500,000 of 25 tax credits during any one calendar year for its efforts in 26 creating jobs. 27 (7) If the application is insufficient to support the 28 credit authorized in this section, the Office of Tourism, 29 Trade, and Economic Development shall deny the credit and 30 notify the business of that fact. The business may reapply 31 for this credit within 3 months after such notification. 27 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 (8) If the credit under this section is greater than 2 can be taken on a single tax return, excess amounts may be 3 taken as credits on any tax return submitted within 12 months 4 after the approval of the application by the department. 5 (9) It is the responsibility of each business to 6 affirmatively demonstrate to the satisfaction of the 7 Department of Revenue that it meets the requirements of this 8 section. 9 (10) Any person who fraudulently claims this credit is 10 liable for repayment of the credit plus a mandatory penalty of 11 100 percent of the credit and is guilty of a misdemeanor of 12 the second degree, punishable as provided in s. 775.082 or s. 13 775.083. 14 (11) A corporation may take the credit under this 15 section against its corporate income tax liability, as 16 provided in s. 220.1895. However, a corporation that uses its 17 job tax credit against the tax imposed by chapter 220 may not 18 receive the credit provided for in this section. A credit may 19 be taken against only one tax. 20 (12) The department shall adopt rules governing the 21 manner and form of applications for credit and may establish 22 guidelines as to the requisites for an affirmative showing of 23 qualification for the credit under this section. 24 Section 3. Reduction or waiver of financial match 25 requirements.--Notwithstanding any other law, the member 26 agencies and organizations of the Rural Economic Development 27 Initiative (REDI), as defined in section 288.0656(6)(a), 28 Florida Statutes, shall review the financial match 29 requirements for projects in rural areas as defined in section 30 288.0656(2)(b), Florida Statutes. 31 (1) Each agency and organization shall develop a 28 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 proposal to waive or reduce the match requirement for rural 2 areas. 3 (2) Agencies and organizations shall ensure that all 4 proposals are submitted to the Office of Tourism, Trade, and 5 Economic Development for review by the REDI agencies. 6 (3) These proposals shall be delivered to the Office 7 of Tourism, Trade, and Economic Development for distribution 8 to the REDI agencies and organizations. A meeting of REDI 9 agencies and organizations must be called within 30 days after 10 receipt of such proposals for REDI comment and recommendations 11 on each proposal. 12 (4) Waivers and reductions must be requested by the 13 county or community, and such county or community must have 14 three or more of the factors identified in section 15 288.0656(2)(a), Florida Statutes. 16 (5) Any other funds available to the project may be 17 used for financial match of federal programs when there is 18 fiscal hardship and the match requirements may not be waived 19 or reduced. 20 (6) When match requirements are not reduced or 21 eliminated, donations of land, though usually not recognized 22 as an in-kind match, may be permitted. 23 (7) To the fullest extent possible, agencies and 24 organizations shall expedite the rule adoption and amendment 25 process if necessary to incorporate the reduction in match by 26 rural areas in fiscal distress. 27 (8) REDI shall include in its annual report an 28 evaluation on the status of changes to rules, number of awards 29 made with waivers, and recommendations for future changes. 30 Section 4. Subsection (1) of section 220.03, Florida 31 Statutes, is amended to read: 29 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 220.03 Definitions.-- 2 (1) SPECIFIC TERMS.--When used in this code, and when 3 not otherwise distinctly expressed or manifestly incompatible 4 with the intent thereof, the following terms shall have the 5 following meanings: 6 (a) "Ad valorem taxes paid" means 96 percent of 7 property taxes levied for operating purposes and does not 8 include interest, penalties, or discounts foregone. In 9 addition, the term "ad valorem taxes paid," for purposes of 10 the credit in s. 220.182, means the ad valorem tax paid on new 11 or additional real or personal property acquired to establish 12 a new business or facilitate a business expansion, including 13 pollution and waste control facilities, or any part thereof, 14 and including one or more buildings or other structures, 15 machinery, fixtures, and equipment. The provisions of this 16 paragraph shall expire and be void on June 30, 2005. 17 (b) "Affiliated group of corporations" means two or 18 more corporations which constitute an affiliated group of 19 corporations as defined in s. 1504(a) of the Internal Revenue 20 Code. 21 (c) "Business" or "business firm" means any business 22 entity authorized to do business in this state as defined in 23 paragraph (e), and any bank or savings and loan association as 24 defined in s. 220.62, subject to the tax imposed by the 25 provisions of this chapter. The provisions of this paragraph 26 shall expire and be void on June 30, 2005. 27 (d) "Community contribution" means the grant by a 28 business firm of any of the following items: 29 1. Cash or other liquid assets. 30 2. Real property. 31 3. Goods or inventory. 30 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 4. Other physical resources as identified by the 2 department. 3 4 The provisions of this paragraph shall expire and be void on 5 June 30, 2005. 6 (e) "Corporation" includes all domestic corporations; 7 foreign corporations qualified to do business in this state or 8 actually doing business in this state; joint-stock companies; 9 limited liability companies, under chapter 608; common-law 10 declarations of trust, under chapter 609; corporations not for 11 profit, under chapter 617; agricultural cooperative marketing 12 associations, under chapter 618; professional service 13 corporations, under chapter 621; foreign unincorporated 14 associations, under chapter 622; private school corporations, 15 under chapter 623; foreign corporations not for profit which 16 are carrying on their activities in this state; and all other 17 organizations, associations, legal entities, and artificial 18 persons which are created by or pursuant to the statutes of 19 this state, the United States, or any other state, territory, 20 possession, or jurisdiction. The term "corporation" does not 21 include proprietorships, even if using a fictitious name; 22 partnerships of any type, as such; limited liability companies 23 that are taxable as partnerships for federal income tax 24 purposes; state or public fairs or expositions, under chapter 25 616; estates of decedents or incompetents; testamentary 26 trusts; or private trusts. 27 (f) "Department" means the Department of Revenue of 28 this state. 29 (g) "Director" means the executive director of the 30 Department of Revenue and, when there has been an appropriate 31 delegation of authority, the executive director's delegate. 31 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 (h) "Earned," "accrued," "paid," or "incurred" shall 2 be construed according to the method of accounting upon the 3 basis of which a taxpayer's income is computed under this 4 code. 5 (i) "Emergency," as used in s. 220.02 and in paragraph 6 (u) of this subsection, means occurrence of widespread or 7 severe damage, injury, or loss of life or property proclaimed 8 pursuant to s. 14.022 or declared pursuant to s. 252.36. The 9 provisions of this paragraph shall expire and be void on June 10 30, 2005. 11 (j) "Enterprise zone" means an area in the state 12 designated pursuant to s. 290.0065. The provisions of this 13 paragraph shall expire and be void on June 30, 2005. 14 (k) "Expansion of an existing business," for the 15 purposes of the enterprise zone property tax credit, means any 16 business entity authorized to do business in this state as 17 defined in paragraph (e), and any bank or savings and loan 18 association as defined in s. 220.62, subject to the tax 19 imposed by the provisions of this chapter, located in an 20 enterprise zone, which expands by or through additions to real 21 and personal property and which establishes five or more new 22 jobs to employ five or more additional full-time employees at 23 such location. The provisions of this paragraph shall expire 24 and be void on June 30, 2005. 25 (l) "Fiscal year" means an accounting period of 12 26 months or less ending on the last day of any month other than 27 December or, in the case of a taxpayer with an annual 28 accounting period of 52-53 weeks under s. 441(f) of the 29 Internal Revenue Code, the period determined under that 30 subsection. 31 (m) "Includes" or "including," when used in a 32 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 definition contained in this code, shall not be deemed to 2 exclude other things otherwise within the meaning of the term 3 defined. 4 (n) "Internal Revenue Code" means the United States 5 Internal Revenue Code of 1986, as amended and in effect on 6 January 1, 2000, except as provided in subsection (3). 7 (o) "Local government" means any county or 8 incorporated municipality in the state. The provisions of this 9 paragraph shall expire and be void on June 30, 2005. 10 (p) "New business," for the purposes of the enterprise 11 zone property tax credit, means any business entity authorized 12 to do business in this state as defined in paragraph (e), or 13 any bank or savings and loan association as defined in s. 14 220.62, subject to the tax imposed by the provisions of this 15 chapter, first beginning operations on a site located in an 16 enterprise zone and clearly separate from any other commercial 17 or industrial operations owned by the same entity, bank, or 18 savings and loan association and which establishes five or 19 more new jobs to employ five or more additional full-time 20 employees at such location. The provisions of this paragraph 21 shall expire and be void on June 30, 2005. 22 (q) "New employee," for the purposes of the enterprise 23 zone jobs credit, means a person residing in an enterprise 24 zone, a qualified Job Training Partnership Act classroom 25 training participant, or a WAGES Program participant in the 26 welfare transition program who is employed at a business 27 located in an enterprise zone who begins employment in the 28 operations of the business after July 1, 1995, and who has not 29 been previously employed full-time within the preceding 12 30 months by the business or a successor business claiming the 31 credit pursuant to s. 220.181. A person shall be deemed to be 33 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 employed by such a business if the person performs duties in 2 connection with the operations of the business on a full-time 3 basis, provided she or he is performing such duties for an 4 average of at least 36 hours per week each month, or a 5 part-time basis, provided she or he is performing such duties 6 for an average of at least 20 hours per week each month 7 throughout the year. The term "jobs" also includes employment 8 of an employee leased from an employee leasing company 9 licensed under chapter 468, if such employee has been 10 continuously leased to the employer for an average of at least 11 36 hours per week for more than 6 months. The person must be 12 performing such duties at a business site located in an 13 enterprise zone. The provisions of this paragraph shall expire 14 and be void on June 30, 2005. 15 (r) "Nonbusiness income" means rents and royalties 16 from real or tangible personal property, capital gains, 17 interest, dividends, and patent and copyright royalties, to 18 the extent that they do not arise from transactions and 19 activities in the regular course of the taxpayer's trade or 20 business. The term "nonbusiness income" does not include 21 income from tangible and intangible property if the 22 acquisition, management, and disposition of the property 23 constitute integral parts of the taxpayer's regular trade or 24 business operations, or any amounts which could be included in 25 apportionable income without violating the due process clause 26 of the United States Constitution. For purposes of this 27 definition, "income" means gross receipts less all expenses 28 directly or indirectly attributable thereto. Functionally 29 related dividends are presumed to be business income. 30 (s) "Partnership" includes a syndicate, group, pool, 31 joint venture, or other unincorporated organization through or 34 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 by means of which any business, financial operation, or 2 venture is carried on, including a limited partnership; and 3 the term "partner" includes a member having a capital or a 4 profits interest in a partnership. 5 (t) "Project" means any activity undertaken by an 6 eligible sponsor, as defined in s. 220.183(2)(c), which is 7 designed to construct, improve, or substantially rehabilitate 8 housing that is affordable to low-income or very-low-income 9 households as defined in s. 420.9071(19) and (28); designed to 10 provide commercial, industrial, or public resources and 11 facilities; or designed to improve entrepreneurial and 12 job-development opportunities for low-income persons. The term 13 also includes the provision of educational programs and 14 materials by an eligible sponsor. A project may be the 15 investment necessary to increase access to high-speed 16 broadband capability in rural communities with enterprise 17 zones, including projects that result in improvements to 18 communications assets that are owned by a business. This 19 paragraph does not preclude projects that propose to construct 20 or rehabilitate low-income or very-low-income housing on 21 scattered sites. The Office of Tourism, Trade, and Economic 22 Development may reserve up to 50 percent of the available 23 annual tax credits under s. 220.181 for housing for 24 very-low-income households pursuant to s. 420.9071(28) for the 25 first 6 months of the fiscal year. With respect to housing, 26 contributions may be used to pay the following eligible 27 project-related activities: 28 1. Project development, impact, and management fees 29 for low-income or very-low-income housing projects; 30 2. Down payment and closing costs for eligible 31 persons, as defined in s. 420.9071(19) and (28); 35 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 3. Administrative costs, including housing counseling 2 and marketing fees, not to exceed 10 percent of the community 3 contribution, directly related to low-income or 4 very-low-income projects; and 5 4. Removal of liens recorded against residential 6 property by municipal, county, or special-district local 7 governments when satisfaction of the lien is a necessary 8 precedent to the transfer of the property to an eligible 9 person, as defined in s. 420.9071(19) and (28), for the 10 purpose of promoting home ownership. Contributions for lien 11 removal must be received from a nonrelated third party. 12 "Project" means any activity undertaken by an eligible 13 sponsor, as defined in s. 220.183(2)(c), which is designed to 14 construct, improve, or substantially rehabilitate housing or 15 commercial, industrial, or public resources and facilities or 16 to improve entrepreneurial and job-development opportunities 17 for low-income persons. 18 19 The provisions of this paragraph shall expire and be void on 20 June 30, 2005. 21 (u) "Rebuilding of an existing business" means 22 replacement or restoration of real or tangible property 23 destroyed or damaged in an emergency, as defined in paragraph 24 (i), after July 1, 1995, in an enterprise zone, by a business 25 entity authorized to do business in this state as defined in 26 paragraph (e), or a bank or savings and loan association as 27 defined in s. 220.62, subject to the tax imposed by the 28 provisions of this chapter, located in the enterprise zone. 29 The provisions of this paragraph shall expire and be void on 30 June 30, 2005. 31 (v) "Regulations" includes rules promulgated, and 36 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 forms prescribed, by the department. 2 (w) "Returns" includes declarations of estimated tax 3 required under this code. 4 (x) "Secretary" means the secretary of the Department 5 of Commerce. The provisions of this paragraph shall expire and 6 be void on June 30, 2005. 7 (y) "State," when applied to a jurisdiction other than 8 Florida, means any state of the United States, the District of 9 Columbia, the Commonwealth of Puerto Rico, any territory or 10 possession of the United States, and any foreign country, or 11 any political subdivision of any of the foregoing. 12 (z) "Taxable year" means the calendar or fiscal year 13 upon the basis of which net income is computed under this 14 code, including, in the case of a return made for a fractional 15 part of a year, the period for which such return is made. 16 (aa) "Taxpayer" means any corporation subject to the 17 tax imposed by this code, and includes all corporations for 18 which a consolidated return is filed under s. 220.131. 19 However, "taxpayer" does not include a corporation having no 20 individuals (including individuals employed by an affiliate) 21 receiving compensation in this state as defined in s. 220.15 22 when the only property owned or leased by said corporation 23 (including an affiliate) in this state is located at the 24 premises of a printer with which it has contracted for 25 printing, if such property consists of the final printed 26 product, property which becomes a part of the final printed 27 product, or property from which the printed product is 28 produced. 29 (bb) "Functionally related dividends" include the 30 following types of dividends: 31 1. Those received from a subsidiary of which the 37 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 voting stock is more than 50 percent owned or controlled by 2 the taxpayer or members of its affiliated group and which is 3 engaged in the same general line of business. 4 2. Those received from any corporation which is either 5 a significant source of supply for the taxpayer or its 6 affiliated group or a significant purchaser of the output of 7 the taxpayer or its affiliated group, or which sells a 8 significant part of its output or obtains a significant part 9 of its raw materials or input from the taxpayer or its 10 affiliated group. "Significant" means an amount of 15 percent 11 or more. 12 3. Those resulting from the investment of working 13 capital or some other purpose in furtherance of the taxpayer 14 or its affiliated group. 15 16 However, dividends not otherwise subject to tax under this 17 chapter are excluded. 18 (cc) "Child care facility startup costs" means 19 expenditures for substantial renovation, equipment, including 20 playground equipment and kitchen appliances and cooking 21 equipment, real property, including land and improvements, and 22 for reduction of debt, made in connection with a child care 23 facility as defined by s. 402.302, or any facility providing 24 daily care to children who are mildly ill, which is located in 25 this state on the taxpayer's premises and used by the 26 employees of the taxpayer. 27 (dd) "Operation of a child care facility" means 28 operation of a child care facility as defined by s. 402.302, 29 or any facility providing daily care to children who are 30 mildly ill, which is located in this state within 5 miles of 31 at least one place of business of the taxpayer and which is 38 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 used by the employees of the taxpayer. 2 (ee) "Citrus processing company" means a corporation 3 which, during the 60-month period ending on December 31, 1997, 4 had derived more than 50 percent of its total gross receipts 5 from the processing of citrus products and the manufacture of 6 juices. 7 (ff) "New job has been created" means that the total 8 number of full-time jobs has increased in an enterprise zone 9 from the average of the previous 12 months, as demonstrated to 10 the department by a business located in the enterprise zone. 11 (gg) "Jobs" means full-time positions, as consistent 12 with terms used by the Agency for Workforce Innovation and the 13 United States Department of Labor for purposes of unemployment 14 compensation tax administration and employment estimation 15 resulting directly from business operations in this state. 16 This number may not include temporary construction jobs 17 involved with the construction of facilities or any jobs that 18 have previously been included in any application for tax 19 credits under s. 220.181(1). 20 Section 5. Effective January 1, 2002, subsections (1) 21 and (2) of section 220.181, Florida Statutes, are amended to 22 read: 23 220.181 Enterprise zone jobs credit.-- 24 (1)(a) Beginning January July 1, 2002 1995, there 25 shall be allowed a credit against the tax imposed by this 26 chapter to any business located in an enterprise zone which 27 demonstrates to the department that the total number of 28 full-time jobs defined under s. 212.096(1)(d) has increased 29 from the average of the previous 12 months. This credit is 30 also available for a business that added a minimum of five new 31 full-time jobs in an enterprise zone between July 1, 2000, and 39 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 December 31, 2001 employs one or more new employees. The 2 credit shall be computed as 20 follows: 3 1. Ten percent of the actual monthly wages paid in 4 this state to each new employee hired when a new job has been 5 created, as defined under s. 220.03(1)(ff), unless the 6 business is located in a rural enterprise zone, pursuant to s. 7 290.004(8), in which case the credit shall be 30 percent of 8 the actual monthly wages paid whose wages do not exceed $1,500 9 a month. If no less than 20 percent of the employees of the 10 business are residents of an enterprise zone, excluding 11 temporary and part-time employees, the credit shall be 12 computed as 30 15 percent of the actual monthly wages paid in 13 this state to each new employee hired when a new job has been 14 created, unless the business is located in a rural enterprise 15 zone, in which case the credit shall be 45 percent of the 16 actual monthly wages paid, for a period of up to 24 12 17 consecutive months.; 18 2. Five percent of the first $1,500 of actual monthly 19 wages paid in this state for each new employee whose wages 20 exceed $1,500 a month; or 21 3. Fifteen percent of the first $1,500 of actual 22 monthly wages paid in this state for each new employee who is 23 a welfare transition program participant. 24 (b) This credit applies only with respect to wages 25 subject to unemployment tax and does not apply for any new 26 employee who is employed for any period less than 3 full 27 months. 28 (c) If this credit is not fully used in any one year, 29 the unused amount may be carried forward for a period not to 30 exceed 5 years. The carryover credit may be used in a 31 subsequent year when the tax imposed by this chapter for such 40 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 year exceeds the credit for such year after applying the other 2 credits and unused credit carryovers in the order provided in 3 s. 220.02(8). 4 (2) When filing for an enterprise zone jobs credit, a 5 business must file under oath with the governing body or 6 enterprise zone development agency having jurisdiction over 7 the enterprise zone where the business is located, as 8 applicable, a statement which includes: 9 (a) For each new employee for whom this credit is 10 claimed, the employee's name and place of residence during the 11 taxable year, including the identifying number assigned 12 pursuant to s. 290.0065 to the enterprise zone in which the 13 new employee resides if the new employee is a person residing 14 in an enterprise zone, and, if applicable, documentation that 15 the employee is a qualified Job Training Partnership Act 16 classroom training participant or a welfare transition program 17 participant. 18 (b) 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 (c) The name and address of the business. 24 (d) The identifying number assigned pursuant to s. 25 290.0065 to the enterprise zone in which the eligible business 26 is located. 27 (e) The salary or hourly wages paid to each new 28 employee claimed. 29 (f) Demonstration to the department that the total 30 number of full-time jobs has increased from the average of the 31 previous 12 months. 41 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 (g)(f) Whether the business is a small business as 2 defined by s. 288.703(1). 3 Section 6. Subsections (1), (2), (3), and (4) of 4 section 220.183, Florida Statutes, are amended to read: 5 220.183 Community contribution tax credit.-- 6 (1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX 7 CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM 8 SPENDING.-- 9 (a) There shall be allowed a credit of 50 percent of a 10 community contribution against any tax due for a taxable year 11 under this chapter. 12 (b) No business firm shall receive more than $200,000 13 in annual tax credits for all approved community contributions 14 made in any one year. 15 (c) The total amount of tax credit which may be 16 granted for all programs approved under this section, s. 17 212.08(5)(q), and s. 624.5105 is $20 $10 million annually. 18 (d) All proposals for the granting of the tax credit 19 shall require the prior approval of the Office of Tourism, 20 Trade, and Economic Development. 21 (e) If the credit granted pursuant to this section is 22 not fully used in any one year because of insufficient tax 23 liability on the part of the business firm, the unused amount 24 may be carried forward for a period not to exceed 5 years. The 25 carryover credit may be used in a subsequent year when the tax 26 imposed by this chapter for such year exceeds the credit for 27 such year under this section after applying the other credits 28 and unused credit carryovers in the order provided in s. 29 220.02(8). 30 (f) A taxpayer who files a Florida consolidated return 31 as a member of an affiliated group pursuant to s. 220.131(1) 42 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 may be allowed the credit on a consolidated return basis. 2 (g) A taxpayer who is eligible to receive the credit 3 provided for in s. 624.5105 is not eligible to receive the 4 credit provided by this section. 5 (2) ELIGIBILITY REQUIREMENTS.-- 6 (a) All community contributions by a business firm 7 shall be in the form specified in s. 220.03(1)(d). 8 (b) All community contributions must be reserved 9 exclusively for use in projects as defined in s. 220.03(1)(t). 10 The Office of Tourism, Trade, and Economic Development may 11 reserve up to 50 percent of the available annual tax credits 12 for housing for very-low-income households pursuant to s. 13 420.9071(28), for the first 6 months of the fiscal year. 14 (c) The project must be undertaken by an "eligible 15 sponsor," defined here as: 16 1. A community action program; 17 2. A nonprofit community-based community development 18 organization whose mission is the provision of housing for 19 low-income or very-low-income households or increasing 20 entrepreneurial and job-development opportunities for 21 low-income persons corporation; 22 3. A neighborhood housing services corporation; 23 4. A local housing authority, created pursuant to 24 chapter 421; 25 5. A community redevelopment agency, created pursuant 26 to s. 163.356; 27 6. The Florida Industrial Development Corporation; 28 7. An historic preservation district agency or 29 organization; 30 8. A regional workforce board private industry 31 council; 43 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 9. A direct-support organization as provided in s. 2 240.551; 3 10. An enterprise zone development agency created 4 pursuant to s. 290.0056 s. 290.0057; or 5 11. A community-based organization incorporated under 6 chapter 617 which is recognized as educational, charitable, or 7 scientific pursuant to s. 501(c)(3) of the Internal Revenue 8 Code and whose by-laws and articles of incorporation include 9 affordable housing, economic development, or community 10 development as the primary mission of the corporation; 11 12. Units of local government; 12 13. Units of state government; or 13 14.11. Such other agency as the Office of Tourism, 14 Trade, and Economic Development may, from time to time, 15 designate by rule. 16 17 In no event shall a contributing business firm have a 18 financial interest in the eligible sponsor. 19 (d) The project shall be located in an area designated 20 as an enterprise zone or a Front Porch Florida Community 21 pursuant to s. 14.2015(9)(b) pursuant to s. 290.0065. Any 22 project designed to construct or rehabilitate housing for 23 low-income or very-low-income households as defined in s. 24 420.9071(19) and (28) low-income housing is exempt from the 25 area requirement of this paragraph. This section does not 26 preclude projects that propose to construct or rehabilitate 27 housing for low-income or very-low-income households on 28 scattered sites. Any project designed to provide increased 29 access to high-speed broadband capabilities which includes 30 coverage of a rural enterprise zone may locate the project's 31 infrastructure in any area of a rural county. 44 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 (3) APPLICATION REQUIREMENTS.-- 2 (a) Any eligible sponsor wishing to participate in 3 this program must submit a proposal to the Office of Tourism, 4 Trade, and Economic Development which sets forth the sponsor, 5 the project, the area in which the project is located, and 6 such supporting information as may be prescribed by rule. The 7 proposal shall also contain a resolution from the local 8 governmental unit in which it is located certifying that the 9 project is consistent with local plans and regulations. 10 (b) Any business wishing to participate in this 11 program must submit an application for tax credit to the 12 Office of Tourism, Trade, and Economic Development, which 13 application sets forth the sponsor; the project; and the type, 14 value, and purpose of the contribution. The sponsor shall 15 verify the terms of the application and indicate its receipt 16 of willingness to receive the contribution, which verification 17 indicate its willingness to receive the contribution, which 18 verification must shall be in writing and shall accompany the 19 application for tax credit. 20 (c) The business firm must submit a separate 21 application for tax credit for each individual contribution 22 that which it makes proposes to contribute to each individual 23 project. 24 (4) ADMINISTRATION.-- 25 (a) The Office of Tourism, Trade, and Economic 26 Development has authority to adopt rules pursuant to ss. 27 120.536(1) and 120.54 to implement the provisions of this 28 section, including rules for the approval or disapproval of 29 proposals by business firms. 30 (b) The decision of the Office of Tourism, Trade, and 31 Economic Development shall be in writing, and, if approved, 45 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 the notification must proposal shall state the maximum credit 2 allowable to the business firm. A copy of the decision shall 3 be transmitted to the executive director of the Department of 4 Revenue, who shall apply such credit to the tax liability of 5 the business firm. 6 (c) The Office of Tourism, Trade, and Economic 7 Development shall periodically monitor all projects in a 8 manner consistent with available resources to ensure that 9 resources are utilized in accordance with this section; 10 however, each project shall be reviewed no less often than 11 once every 2 years. 12 (d) The Department of Revenue has authority to adopt 13 rules pursuant to ss. 120.536(1) and 120.54 to implement the 14 provisions of this section. 15 (e) The Office of Tourism, Trade, and Economic 16 Development shall, in consultation with the Department of 17 Community Affairs, the Florida Housing Finance Corporation, 18 and the statewide and regional housing and financial 19 intermediaries, market the availability of the community 20 contribution tax credit program to community-based 21 organizations. 22 Section 7. Section 288.018, Florida Statutes, is 23 amended to read: 24 288.018 Regional Rural Development Grants Program.-- 25 (1) The Office of Tourism, Trade, and Economic 26 Development shall establish a matching grant program to 27 provide funding to regionally based economic development 28 organizations representing rural counties and communities for 29 the purpose of building the professional capacity of their 30 organizations. The Office of Tourism, Trade, and Economic 31 Development is authorized to approve, on an annual basis, 46 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 grants to such regionally based economic development 2 organizations. The maximum amount an organization may receive 3 in any year will be $35,000, or $100,000 in a rural area of 4 critical economic concern recommended by the Rural Economic 5 Development Initiative and designated by the Governor, and 6 must be matched each year by an equivalent amount of nonstate 7 resources. 8 (2) In approving the participants, the Office of 9 Tourism, Trade, and Economic Development shall consider the 10 demonstrated need of the applicant for assistance and require 11 the following: 12 (a) Documentation of official commitments of support 13 from each of the units of local government represented by the 14 regional organization. 15 (b) Demonstration that each unit of local government 16 has made a financial or in-kind commitment to the regional 17 organization. 18 (c) Demonstration that the private sector has made 19 financial or in-kind commitments to the regional organization. 20 (d) Demonstration that the organization is in 21 existence and actively involved in economic development 22 activities serving the region. 23 (e) Demonstration of the manner in which the 24 organization is or will coordinate its efforts with those of 25 other local and state organizations. 26 (3) The Office of Tourism, Trade, and Economic 27 Development may also contract for the development of an 28 enterprise zone web portal or web sites for each enterprise 29 zone which will be used to market the program for job creation 30 in disadvantaged urban and rural enterprise zones. Each 31 enterprise zone web page should include downloadable links to 47 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 state forms and information, as well as local message boards 2 that help businesses and residents receive information 3 concerning zone boundaries, job openings, zone programs, and 4 neighborhood improvement activities. 5 (4)(3) The Office of Tourism, Trade, and Economic 6 Development may expend up to $750,000 $600,000 each fiscal 7 year from funds appropriated to the Rural Community 8 Development Revolving Loan Fund for the purposes outlined in 9 this section. The Office of Tourism, Trade, and Economic 10 Development may contract with Enterprise Florida, Inc., for 11 the administration of the purposes specified in this section. 12 Funds released to Enterprise Florida, Inc., for this purpose 13 shall be released quarterly and shall be calculated based on 14 the applications in process. 15 Section 8. Section 288.019, Florida Statutes, is 16 created to read: 17 288.019 Rural considerations in grant review and 18 evaluation processes.--Notwithstanding any other law, and to 19 the fullest extent possible, the member agencies and 20 organizations of the Rural Economic Development Initiative 21 (REDI) as defined in s. 288.0656(6)(a) shall review all grant 22 and loan application evaluation criteria to ensure the fullest 23 access for rural counties as defined in s. 288.0656(2)(b) to 24 resources available throughout the state. 25 (1) Each REDI agency and organization shall review all 26 evaluation and scoring procedures and develop modifications to 27 those procedures which minimize the impact of a project within 28 a rural area. 29 (2) Evaluation criteria and scoring procedures must 30 provide for an appropriate ranking based on the proportionate 31 impact that projects have on a rural area when compared with 48 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 similar project impacts on an urban area. 2 (3) Evaluation criteria and scoring procedures must 3 recognize the disparity of available fiscal resources for an 4 equal level of financial support from an urban county and a 5 rural county. 6 (a) The evaluation criteria should weight contribution 7 in proportion to the amount of funding available at the local 8 level. 9 (b) In-kind match should be allowed and applied as 10 financial match when a county is experiencing financial 11 distress through elevated unemployment at a rate in excess of 12 the state's average by 5 percentage points or because of the 13 loss of its ad valorem base. 14 (4) For existing programs, the modified evaluation 15 criteria and scoring procedure must be delivered to the Office 16 of Tourism, Trade, and Economic Development for distribution 17 to the REDI agencies and organizations. The REDI agencies and 18 organizations shall review and make comments. Future rules, 19 programs, evaluation criteria, and scoring processes must be 20 brought before a REDI meeting for review, discussion, and 21 recommendation to allow rural counties fuller access to the 22 state's resources. 23 Section 9. Subsection (2) of section 288.065, Florida 24 Statutes, is amended to read: 25 288.065 Rural Community Development Revolving Loan 26 Fund.-- 27 (2) The program shall provide for long-term loans, 28 loan guarantees, and loan loss reserves to units of local 29 governments, or economic development organizations 30 substantially underwritten by a unit of local government, 31 within counties with populations of 75,000 or less, or any 49 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 county that has a population of 100,000 or less and is 2 contiguous to a county with a population of 75,000 or less, as 3 determined by the most recent official estimate pursuant to s. 4 186.901, residing in incorporated and unincorporated areas of 5 the county, or to units of local government, or economic 6 development organizations substantially underwritten by a unit 7 of local government, within a rural area of critical economic 8 concern. Requests for loans shall be made by application to 9 the Office of Tourism, Trade, and Economic Development. Loans 10 shall be made pursuant to agreements specifying the terms and 11 conditions agreed to between the applicant local government 12 and the Office of Tourism, Trade, and Economic Development. 13 The loans shall be the legal obligations of the applicant 14 local government. All repayments of principal and interest 15 shall be returned to the loan fund and made available for 16 loans to other applicants. However, in a rural area of 17 critical economic concern designated by the Governor, and upon 18 approval by the Office of Tourism, Trade, and Economic 19 Development, repayments of principal and interest may be 20 retained by the applicant a unit of local government if such 21 repayments are dedicated and matched to fund regionally based 22 economic development organizations representing the rural area 23 of critical economic concern. 24 Section 10. Subsection (6) of section 288.0656, 25 Florida Statutes, is amended to read: 26 288.0656 Rural Economic Development Initiative.-- 27 (6)(a) By No later than August 1 of each year, 1999, 28 the head of each of the following agencies and organizations 29 shall designate a high-level staff person from within the 30 agency or organization to serve as the REDI representative for 31 the agency or organization: 50 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 1. The Department of Community Affairs. 2 2. The Department of Transportation. 3 3. The Department of Environmental Protection. 4 4. The Department of Agriculture and Consumer 5 Services. 6 5. The Department of State. 7 6. The Department of Health. 8 7. The Department of Children and Family Services. 9 8. The Department of Corrections. 10 9. The Agency for Workforce Innovation Department of 11 Labor and Employment Security. 12 10. The Department of Education. 13 11. The Department of Juvenile Justice. 14 12.11. The Fish and Wildlife Conservation Commission. 15 13.12. Each water management district. 16 14.13. Enterprise Florida, Inc. 17 15. Workforce Florida, Inc. 18 16.14. The Florida Commission on Tourism or VISIT 19 Florida. 20 17.15. The Florida Regional Planning Council 21 Association. 22 18.16. The Florida State Rural Development Council. 23 19.17. The Institute of Food and Agricultural Sciences 24 (IFAS). 25 26 An alternate for each designee shall also be chosen, and the 27 names of the designees and alternates shall be sent to the 28 director of the Office of Tourism, Trade, and Economic 29 Development. 30 (b) Each REDI representative must have comprehensive 31 knowledge of his or her agency's functions, both regulatory 51 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 and service in nature, and of the state's economic goals, 2 policies, and programs. This person shall be the primary point 3 of contact for his or her agency with REDI on issues and 4 projects relating to economically distressed rural communities 5 and with regard to expediting project review, shall ensure a 6 prompt effective response to problems arising with regard to 7 rural issues, and shall work closely with the other REDI 8 representatives in the identification of opportunities for 9 preferential awards of program funds and allowances and waiver 10 of program requirements when necessary to encourage and 11 facilitate long-term private capital investment and job 12 creation. 13 (c) The REDI representatives shall work with REDI in 14 the review and evaluation of statutes and rules for adverse 15 impact on rural communities and the development of alternative 16 proposals to mitigate that impact. 17 (d) Each REDI representative shall be responsible for 18 ensuring that each district office or facility of his or her 19 agency is informed about the Rural Economic Development 20 Initiative and for providing assistance throughout the agency 21 in the implementation of REDI activities. 22 Section 11. Section 288.1088, Florida Statutes, is 23 amended to read: 24 288.1088 Quick Action Closing Fund.-- 25 (1)(a) The Legislature finds that attracting, 26 retaining, and providing favorable conditions for the growth 27 of certain high-impact business facilities, privately 28 developed critical rural infrastructure, or key facilities in 29 economically distressed urban or rural communities which 30 provide provides widespread economic benefits to the public 31 through high-quality employment opportunities in such 52 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 facilities or and in related facilities attracted to the 2 state, through the increased tax base provided by the 3 high-impact facility and related businesses in related 4 sectors, through an enhanced entrepreneurial climate in the 5 state and the resulting business and employment opportunities, 6 and through the stimulation and enhancement of the state's 7 universities and community colleges. In the global economy, 8 there exists serious and fierce international competition for 9 these facilities, and in most instances, when all available 10 resources for economic development have been used, the state 11 continues to encounter severe competitive disadvantages in 12 vying for these high-impact business facilities. Florida's 13 rural areas must provide a competitive environment for 14 business in the information age. This often requires an 15 incentive to make it feasible for private investors to provide 16 infrastructure in those areas. 17 (b) The Legislature therefore declares that sufficient 18 resources shall be available to respond to extraordinary 19 economic opportunities and to compete effectively for these 20 high-impact business facilities, critical private 21 infrastructure in rural areas, and key businesses in 22 economically distressed urban or rural communities. 23 (2) There is created within the Office of Tourism, 24 Trade, and Economic Development the Quick Action Closing Fund. 25 (3)(a) Enterprise Florida, Inc., shall evaluate 26 individual proposals for high-impact business facilities and 27 forward recommendations regarding the use of moneys in the 28 fund for such facilities to the director of the Office of 29 Tourism, Trade, and Economic Development. Such evaluation and 30 recommendation must include, but need not be limited to: 31 1. A description of the type of facility or 53 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 infrastructure, its operations business operation, and the 2 associated product or service associated with the facility. 3 2. The number of full-time-equivalent jobs that will 4 be created by the facility and the total estimated average 5 annual wages of those jobs or, in the case of privately 6 developed rural infrastructure, the types of business 7 activities and jobs stimulated by the investment. 8 3. The cumulative amount of investment to be dedicated 9 to the facility within a specified period. 10 4. A statement of any special impacts the facility is 11 expected to stimulate in a particular business sector in the 12 state or regional economy or in the state's universities and 13 community colleges. 14 5. A statement of the role the incentive is expected 15 to play in the decision of the applicant business to locate or 16 expand in this state or for the private investor to provide 17 critical rural infrastructure. 18 (b) Upon receipt of the evaluation and recommendation 19 from Enterprise Florida, Inc., the director shall recommend 20 approval or disapproval of a project for receipt of funds from 21 the Quick Action Closing Fund to the Governor. In recommending 22 a project high-impact business facility, the director shall 23 include proposed performance conditions that the project 24 facility must meet to obtain incentive funds. The Governor 25 shall consult with the President of the Senate and the Speaker 26 of the House of Representatives before giving final approval 27 for a project. The Executive Office of the Governor shall 28 recommend approval of a project and release of funds pursuant 29 to the legislative consultation and review requirements set 30 forth in s. 216.177. The recommendation must include proposed 31 performance conditions the project must meet to obtain funds. 54 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 (c) Upon the approval of the Governor, the director of 2 the Office of Tourism, Trade, and Economic Development and the 3 high-impact business shall enter into a contract that sets 4 forth the conditions for payment of moneys from the fund. The 5 contract must include the total amount of funds awarded; the 6 performance conditions that must be met to obtain the award, 7 including, but not limited to, net new employment in the 8 state, average salary, and total capital investment; 9 demonstrate a baseline of current service and a measure of 10 enhanced capability; the methodology for validating 11 performance; the schedule of payments from the fund; and 12 sanctions for failure to meet performance conditions. 13 (d) Enterprise Florida, Inc., shall validate 14 contractor performance. Such validation shall be reported 15 within 6 months after completion of the contract to the 16 Governor, President of the Senate, and the Speaker of the 17 House of Representatives. 18 Section 12. Subsection (2) of section 288.9015, 19 Florida Statutes, is amended to read: 20 288.9015 Enterprise Florida, Inc.; purpose; duties.-- 21 (2) It shall be the responsibility of Enterprise 22 Florida, Inc., to aggressively market Florida's rural 23 communities, and distressed urban communities, and enterprise 24 zones as locations for potential new investment, to 25 aggressively assist in the retention and expansion of existing 26 businesses in these communities, and to aggressively assist 27 these communities in the identification and development of new 28 economic development opportunities for job creation, fully 29 using state incentive programs such as the Qualified Target 30 Industry Tax Refund Program under s. 288.106 and the Quick 31 Action Closing Fund under s. 288.1088 in economically 55 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 distressed areas. 2 Section 13. Section 290.004, Florida Statutes, is 3 amended to read: 4 290.004 Definitions relating to Florida Enterprise 5 Zone Act.--As used in ss. 290.001-290.016: 6 (1) "Community investment corporation" means a black 7 business investment corporation, a certified development 8 corporation, a small business investment corporation, or other 9 similar entity incorporated under Florida law that has limited 10 its investment policy to making investments solely in minority 11 business enterprises. 12 (2) "Department" means the Department of Commerce. 13 (3) "Director" means the director of the Office of 14 Tourism, Trade, and Economic Development. 15 (4) "Governing body" means the council or other 16 legislative body charged with governing the county or 17 municipality. 18 (5) "Interagency coordinating council" means the 19 Enterprise Zone Interagency Coordinating Council created 20 pursuant to s. 290.009. 21 (6) "Minority business enterprise" has the same 22 meaning as in s. 288.703. 23 (7) "Office" means the Office of Tourism, Trade, and 24 Economic Development. 25 (8) "Rural enterprise zone" means an enterprise zone 26 that is nominated by a county having a population of 75,000 or 27 fewer, or a county having a population of 100,000 or fewer 28 which is contiguous to a county having a population of 75,000 29 or fewer, or by a municipality in such a county, or by such a 30 county and one or more municipalities. An enterprise zone 31 designated in accordance with s. 370.28 or s. 290.0065(5)(b), 56 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 is considered to be a rural enterprise zone. 2 (9)(8) "Secretary" means the Secretary of Commerce. 3 (10)(9) "Small business" has the same meaning as in s. 4 288.703. 5 Section 14. Enterprise zone designation for Sarasota 6 County or Sarasota County and Sarasota.--Sarasota County, or 7 Sarasota County and the City of Sarasota jointly, may apply to 8 the Office of Tourism, Trade, and Economic Development for 9 designation of one enterprise zone within the county, or 10 within both the county and the municipality, which zone 11 encompasses an area that is south of the north county line, 12 west of Tuttle Avenue, north of 10th Street, and east of U.S. 13 Highway 41. The application must be submitted by December 31, 14 2001, and must comply with the requirements of section 15 290.0055, Florida Statutes. Notwithstanding the provisions of 16 section 290.0065, Florida Statutes, limiting the total number 17 of enterprise zones designated and the number of enterprise 18 zones within a population category, the Office of Tourism, 19 Trade, and Economic Development may designate one enterprise 20 zone under this section. The Office of Tourism, Trade, and 21 Economic Development shall establish the initial effective 22 date of the enterprise zone designated under this section. 23 Section 15. Section 290.00555, Florida Statutes, is 24 amended to read: 25 290.00555 Satellite enterprise zones.--Before December 26 31, 1999, Any municipality an area of which has previously 27 received designation as an enterprise zone in the population 28 category described in s. 290.0065(3)(a)3. may create a 29 satellite enterprise zone not exceeding 1.5 square miles in 30 area outside of and, notwithstanding anything contained in s. 31 290.0055(4), or any other law, in addition to the previously 57 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 designated enterprise zone boundaries. The Office of Tourism, 2 Trade, and Economic Development shall amend the boundaries of 3 the areas previously designated by any such municipality as 4 enterprise zones upon receipt of a resolution adopted by the 5 municipality describing the satellite enterprise zone areas, 6 as long as the additional areas are consistent with the 7 categories, criteria, and limitations imposed by s. 290.0055. 8 However, the requirements imposed by s. 290.0055(4)(d) do not 9 apply to such satellite enterprise zone areas. 10 Section 16. Satellite enterprise zones may be created 11 pursuant to section 290.00555, Florida Statutes, effective 12 retroactively to December 31, 1999. Resolutions adopted to 13 create satellite enterprise zones under this section must be 14 submitted to the Office of Tourism, Trade, and Economic 15 Development no later than August 1, 2001. The Office of 16 Tourism, Trade, and Economic Development must amend the 17 boundaries of previously designated enterprise zones to create 18 eligible satellite enterprise zones no later than September 1, 19 2001. Notwithstanding the time limitations contained in 20 chapter 212, Florida Statutes, a business in a satellite 21 enterprise zone designated under this section which was 22 eligible to receive tax incentives pursuant to section 23 212.08(5)(g) and (h) and section 212.096, Florida Statutes, 24 during the period beginning December 31, 1999, and ending on 25 the date of the creation of the satellite enterprise zone, 26 must submit an application for the tax incentives by December 27 1, 2001. All other requirements of the enterprise zone program 28 apply to such a business. 29 Section 17. Section 290.0065, Florida Statutes, is 30 amended to read: 31 290.0065 State designation of enterprise zones.-- 58 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 (1) Upon application of the governing body of a county 2 or municipality or of a county and one or more municipalities 3 jointly pursuant to s. 290.0055, Enterprise Florida, Inc., and 4 the office department, in consultation with the interagency 5 coordinating council, shall determine which areas nominated by 6 such governing bodies meet the criteria outlined in s. 7 290.0055 and are the most appropriate for designation as state 8 enterprise zones. The office department is authorized to 9 designate up to 5 areas within each of the categories 10 established in subparagraphs (3)(a)1., 2., 3., 4., and 5., 11 except that the office department may only designate a total 12 of 20 areas as enterprise zones. The office department shall 13 not designate more than three enterprise zones in any one 14 county. All designations, including any provision for 15 redesignations, of state enterprise zones pursuant to this 16 section shall be effective July 1, 1995. 17 (2) Each application made pursuant to s. 290.0055 18 shall be ranked competitively within the appropriate category 19 established pursuant to subsection (3) based on the pervasive 20 poverty, unemployment, and general distress of the area; the 21 strategic plan, including local fiscal and regulatory 22 incentives, prepared pursuant to s. 290.0057; and the 23 prospects for new investment and economic development in the 24 area. Pervasive poverty, unemployment, and general distress 25 shall be weighted 35 percent; strategic plan and local fiscal 26 and regulatory incentives shall be weighted 40 percent; and 27 prospects for new investment and economic development in the 28 area shall be weighted 25 percent. 29 (3)(a) Each area designated as an enterprise zone 30 pursuant to this section shall be placed in one of the 31 following categories based on the 1990 census: 59 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 1. Communities consisting of census tracts in areas 2 having a total population of 150,000 persons or more. 3 2. Communities consisting of census tracts in areas 4 having a total population of 50,000 persons or more but less 5 than 150,000 persons. 6 3. Communities having a population of 20,000 persons 7 or more but less than 50,000 persons. 8 4. Communities having a population of 7,500 persons or 9 more but less than 20,000 persons. 10 5. Communities having a population of less than 7,500 11 persons. 12 (b) Any area authorized to be an enterprise zone by 13 both a county and a municipality shall be placed in the 14 appropriate category established under paragraph (a) in which 15 an application by the municipality would have been considered 16 if the municipality had acted alone, if at least 60 percent of 17 the population of the area authorized to be an enterprise zone 18 resides within the municipality. An area authorized to be an 19 enterprise zone by a county and one or more municipalities 20 shall be placed in the category in which an application by the 21 municipality with the highest percentage of residents in such 22 area would have been considered if such municipality had 23 authorized the area to be an enterprise zone. An area 24 authorized to be an enterprise zone by a county as defined by 25 s. 125.011(1) shall be placed in the category in which an 26 application by the municipality in which the area is located 27 would have been considered if the municipality had authorized 28 such area to be an enterprise zone. An area authorized to be 29 an enterprise zone by a county as defined by s. 125.011(1) 30 which area is located in two or more municipalities shall be 31 placed in the category in which an application by the 60 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 municipality with the highest percentage of residents in such 2 area would have been considered if such municipality had 3 authorized such area to be an enterprise zone. 4 (4)(a) Notwithstanding s. 290.0055, any area existing 5 as a state enterprise zone as of the effective date of this 6 section and originally approved through a joint application 7 from a county and municipality, or through an application from 8 a county as defined in s. 125.011(1), shall be redesignated as 9 a state enterprise zone upon the creation of an enterprise 10 zone development agency pursuant to s. 290.0056 and the 11 completion of a strategic plan pursuant to s. 290.0057. Any 12 area redesignated pursuant to this subsection, other than an 13 area located in a county defined in s. 125.011(1), may be 14 relocated or modified by the appropriate governmental bodies. 15 Such relocation or modification shall be identified in the 16 strategic plan and shall meet the requirements for designation 17 as established by s. 290.005. Any relocation or modification 18 shall be submitted on or before June 1, 1996. 19 (b) The office department shall place any area 20 designated as a state enterprise zone pursuant to this 21 subsection in the appropriate category established in 22 subsection (3), and include such designations within the 23 limitations on state enterprise zone designations set out in 24 subsection (1). 25 (c) Any county or municipality having jurisdiction 26 over an area designated as a state enterprise zone pursuant to 27 this subsection, other than a county defined by s. 125.011(1), 28 may not apply for designation of another area. 29 (5) Notwithstanding s. 290.0055, an area designated as 30 a federal empowerment zone or enterprise community pursuant to 31 Title XIII of the Omnibus Budget Reconciliation Act of 1993, 61 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 the Taxpayer Relief Act of 1997, or the 1999 Agricultural 2 Appropriations Act shall be designated a state enterprise zone 3 as follows: 4 (a) An area designated as an urban empowerment zone or 5 urban enterprise community pursuant to Title XIII of the 6 Omnibus Budget Reconciliation Act of 1993 or the Taxpayer 7 Relief Act of 1997 shall be designated a state enterprise zone 8 by the office department upon completion of the requirements 9 set out in paragraph (d), except in the case of a county as 10 defined in s. 125.011(1) which, notwithstanding s. 290.0055, 11 may incorporate and include such designated urban empowerment 12 zone or urban enterprise community areas within the boundaries 13 of its state enterprise zones without any limitation as to 14 size. 15 (b) An area designated as a rural empowerment zone or 16 rural enterprise community pursuant to Title XIII of the 17 Omnibus Budget Reconciliation Act of 1993 or the 1999 18 Agricultural Appropriations Act shall be designated a state 19 rural enterprise zone by the office department upon completion 20 of the requirements set out in paragraph (d) and may 21 incorporate and include such designated rural empowerment zone 22 or rural enterprise community within the boundaries of its 23 state enterprise zones without any limitation as to size. 24 (c) Any county or municipality having jurisdiction 25 over an area designated as a state enterprise zone pursuant to 26 this subsection, other than a county defined in s. 125.011(1), 27 may not apply for designation of another area. 28 (d) Prior to designating such areas as state 29 enterprise zones, the office department shall ensure that the 30 governing body having jurisdiction over the zone submits the 31 strategic plan required pursuant to 7 C.F.R. part 25 or 24 62 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 C.F.R. part 597 to the office department, and creates an 2 enterprise zone development agency pursuant to s. 290.0056. 3 (e) The office department shall place any area 4 designated as a state enterprise zone pursuant to this 5 subsection in the appropriate category established in 6 subsection (3), and include such designations within the 7 limitations on state enterprise zone designations set out in 8 subsection (1). 9 (6)(a) The office department, in consultation with 10 Enterprise Florida, Inc., and the interagency coordinating 11 council, may develop guidelines shall promulgate any rules 12 necessary for the approval of areas under this section by the 13 director secretary. 14 (b) Such guidelines rules shall provide for the 15 measurement of pervasive poverty, unemployment, and general 16 distress using the criteria outlined by s. 290.0058. 17 (c) Such guidelines rules shall provide for the 18 evaluation of the strategic plan and local fiscal and 19 regulatory incentives for effectiveness, including how the 20 following key principles will be implemented by the governing 21 body or bodies: 22 1. Economic opportunity, including job creation within 23 the community and throughout the region, as well as 24 entrepreneurial initiatives, small business expansion, and 25 training for jobs that offer upward mobility. 26 2. Sustainable community development that advances the 27 creation of livable and vibrant communities through 28 comprehensive approaches that coordinate economic, physical, 29 community, and human development. 30 3. Community-based partnerships involving the 31 participation of all segments of the community. 63 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 4. Strategic vision for change that identifies how the 2 community will be revitalized. This vision should include 3 methods for building on community assets and coordinate a 4 response to community needs in a comprehensive fashion. This 5 vision should provide goals and performance benchmarks for 6 measuring progress and establish a framework for evaluating 7 and adjusting the strategic plan. 8 5. Local fiscal and regulatory incentives enacted 9 pursuant to s. 290.0057(1)(e). These incentives should induce 10 economic revitalization, including job creation and small 11 business expansion. 12 (d) Such guidelines may rules shall provide methods 13 for evaluating the prospects for new investment and economic 14 development in the area, including a review and evaluation of 15 any previous state enterprise zones located in the area. 16 (7) Upon approval by the director secretary of a 17 resolution authorizing an area to be an enterprise zone 18 pursuant to this section, the office department shall assign a 19 unique identifying number to that resolution. The office 20 department shall provide the Department of Revenue and 21 Enterprise Florida, Inc., with a copy of each resolution 22 approved, together with its identifying number. 23 (8)(a) Notwithstanding s. 290.0055, any area existing 24 as a state enterprise zone as of December 30, 1994, which has 25 received at least $1 million in state community development 26 funds and at least $500,000 in federal community development 27 funds, which has less than 300 businesses located within the 28 boundaries of the enterprise zone, and which has been 29 designated by the United States Department of Agriculture as a 30 "Champion Community" shall be redesignated as a state 31 enterprise zone upon the creation of an enterprise zone 64 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 development agency pursuant to s. 290.0056 and the completion 2 of a strategic plan pursuant to s. 290.0057. 3 (b) Such designation shall be in addition to the 4 limitations of state enterprise zone designation set out in 5 subsection (1). 6 (9) The Office of Tourism, Trade, and Economic 7 Development may amend the boundaries of any enterprise zone 8 designated by the state pursuant to this section, consistent 9 with the categories, criteria, and limitations imposed in this 10 section upon the establishment of such enterprise zone and 11 only if consistent with the determinations made in s. 12 290.0058(2). 13 (9)(10) Before December 31, 1998, the governing body 14 of a county in which an enterprise zone designated pursuant to 15 paragraph (5)(b) is located may apply to the Office of 16 Tourism, Trade, and Economic Development to amend the 17 boundaries of the enterprise zone for the purpose of replacing 18 areas not suitable for development. The Office of Tourism, 19 Trade, and Economic Development shall approve the application 20 if it does not increase the overall size of the enterprise 21 zone. Except that upon the request of the governing body of a 22 home rule charter county, or any county the government of 23 which has been consolidated with the government of one or more 24 municipalities in accordance with s. 9, Art. VIII of the State 25 Constitution of 1885, as preserved by s. 6(e), Art. VIII of 26 the State Constitution as revised in 1968 and subsequently 27 amended, the Office of Tourism, Trade, and Economic 28 Development may amend the boundaries of an area designated as 29 an enterprise zone upon the receipt of a resolution adopted by 30 such governing body describing the amended boundaries, so long 31 as the added area does not increase the overall size of the 65 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 expanded zone more than its original size or 20 square miles, 2 whichever is larger, and is consistent with the categories, 3 criteria, and limitations imposed by s. 290.0055. 4 (10)(11) Before December 31, 1999, any county as 5 defined in s. 125.011(1) may create a satellite enterprise 6 zone not exceeding 3 square miles in area outside of and, 7 notwithstanding anything contained in s. 290.0055(4) or 8 elsewhere, in addition to the previously designated 20 square 9 miles of enterprise zones. The Office of Tourism, Trade, and 10 Economic Development shall amend the boundaries of the areas 11 previously designated by any such county as enterprise zones 12 upon the receipt of a resolution adopted by such governing 13 body describing the satellite enterprise zone, as long as the 14 additional area is consistent with the categories, criteria, 15 and limitations imposed by s. 290.0055, provided that the 16 20-square-mile limitation and the requirements imposed by s. 17 290.0055(4)(d) do not apply to such satellite enterprise zone. 18 Section 18. Section 290.00676, Florida Statutes, is 19 created to read: 20 290.00676 Amendment of rural enterprise zone 21 boundaries.--Notwithstanding any other law, upon 22 recommendation by Enterprise Florida, Inc., the Office of 23 Tourism, Trade, and Economic Development may approve requests 24 to amend the boundaries of rural enterprise zones as defined 25 in s. 290.004(8). Boundary amendments authorized by this 26 section are subject to the following requirements: 27 (1) The amendment may increase the size of the rural 28 enterprise zone up to a maximum zone size of 20 square miles. 29 (2) The amendment may increase the zone's number of 30 noncontiguous areas by one, if the additional noncontiguous 31 area has zero population. For purposes of this subsection, the 66 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 pervasive poverty criteria may be set aside for the addition 2 of a noncontiguous area. 3 (3) The local enterprise zone development agency must 4 request the amendment from Enterprise Florida, Inc., prior to 5 December 30, 2001. The request must contain maps and 6 sufficient information to allow the office to determine the 7 number of noncontiguous areas and the total size of the rural 8 enterprise zone. 9 Section 19. Section 290.00677, Florida Statutes, is 10 created to read: 11 290.00677 Rural enterprise zones; special 12 qualifications.-- 13 (1) Notwithstanding the enterprise zone residency 14 requirements set out in s. 212.096(1)(c), eligible businesses 15 as defined by s. 212.096(1)(a), located in rural enterprise 16 zones as defined by s. 290.004, may receive the basic minimum 17 credit provided under s. 212.096 for creating a new job and 18 hiring a person residing within the jurisdiction of a rural 19 county, as defined by s. 288.106(1)(r). All other provisions 20 of s. 212.096, including, but not limited to, those relating 21 to the award of enhanced credits, apply to such businesses. 22 (2) Notwithstanding the enterprise zone residency 23 requirements set out in s. 220.03(1)(q), eligible businesses 24 as defined by s. 212.096(1)(a), located in rural enterprise 25 zones as defined in s. 290.004, may receive the basic minimum 26 credit provided under s. 220.181 for creating a new job and 27 hiring a person residing within the jurisdiction of a rural 28 county, as defined by s. 288.106(1)(r). All other provisions 29 of s. 220.181, including, but not limited to, those relating 30 to the award of enhanced credits apply to such businesses. 31 Section 20. Section 290.00694, Florida Statutes, is 67 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 created to read: 2 290.00694 Enterprise zone designation for rural 3 communities.--An area designated as a rural champion community 4 under the Taxpayer Relief Act of 1997 or a community within a 5 designated rural area of critical economic concern under s. 6 288.0656 may submit an application to Enterprise Florida, 7 Inc., for review and recommendation to the office for 8 designation as an enterprise zone. The application must be 9 submitted by December 31, 2001. Notwithstanding the provisions 10 of s. 290.0065 limiting the total number of enterprise zones 11 designated and the number of enterprise zones within a 12 population category, the Office of Tourism, Trade, and 13 Economic Development may designate enterprise zones under this 14 section. Upon completion of the requirements set out in s. 15 290.0065(5)(d), the Office of Tourism, Trade, and Economic 16 Development shall establish the initial effective date of the 17 enterprise zones designated pursuant to this section. Only one 18 community in each county in a rural area of critical economic 19 concern may be designated as an enterprise zone. 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. Subsection (7) is added to section 28 290.048, Florida Statutes, to read: 29 290.048 General powers of Department of Community 30 Affairs under ss. 290.0401-290.049.--The department has all 31 the powers necessary or appropriate to carry out the purposes 68 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 and provisions of the program, including the power to: 2 (7) Establish advisory committees and solicit 3 participation in designing, administering, and evaluating the 4 program and in linking the program with other housing and 5 community development resources. 6 Section 23. Section 290.049, Florida Statutes, is 7 repealed. 8 Section 24. Subsection (4) of section 370.28, Florida 9 Statutes, is repealed. 10 Section 25. Subsection (39) is added to section 11 420.507, Florida Statutes, to read: 12 420.507 Powers of the corporation.--The corporation 13 shall have all the powers necessary or convenient to carry out 14 and effectuate the purposes and provisions of this part, 15 including the following powers which are in addition to all 16 other powers granted by other provisions of this part: 17 (39) To create recognition programs to honor 18 individuals, community-based development organizations, units 19 of local government, or others who have demonstrated the 20 ideals of community stewardship and increased access to 21 housing for low-income households, including economically 22 distressed areas. Such programs may incorporate certificates 23 of recognition by the Governor and may include presentation by 24 the Governor or his representative. 25 Section 26. Subsections (1), (2), (4), and (5) of 26 section 624.5105, Florida Statutes, are amended to read: 27 624.5105 Community contribution tax credit; 28 authorization; limitations; eligibility and application 29 requirements; administration; definitions; expiration.-- 30 (1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.-- 31 (a) There shall be allowed a credit of 50 percent of a 69 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 community contribution against any tax due for a calendar year 2 under s. 624.509 or s. 624.510. 3 (b) No insurer shall receive more than $200,000 in 4 annual tax credits for all approved community contributions 5 made in any one year. 6 (c) The total amount of tax credit which may be 7 granted for all programs approved under this section, s. 8 212.08(5)(q), and s. 220.183 is $20 $10 million annually. 9 (d) Each proposal for the granting of such tax credit 10 requires the prior approval of the director. 11 (e) If the credit granted pursuant to this section is 12 not fully used in any one year because of insufficient tax 13 liability on the part of the insurer, the unused amount may be 14 carried forward for a period not to exceed 5 years. The 15 carryover credit may be used in a subsequent year when the tax 16 imposed by s. 624.509 or s. 624.510 for such year exceeds the 17 credit under this section for such year. 18 (2) ELIGIBILITY REQUIREMENTS.-- 19 (a) Each community contribution by an insurer must be 20 in a form specified in subsection (5). 21 (b) Each community contribution must be reserved 22 exclusively for use in a project as defined in s. 23 220.03(1)(t). 24 (c) The project must be undertaken by an "eligible 25 sponsor," as which term is defined in s. 220.183(2)(c). as: 26 1. A community action program; 27 2. A community development corporation; 28 3. A neighborhood housing services corporation; 29 4. A local housing authority created pursuant to 30 chapter 421; 31 5. A community redevelopment agency created pursuant 70 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 to s. 163.356; 2 6. The Florida Industrial Development Corporation; 3 7. A historic preservation district agency or 4 organization; 5 8. A private industry council; 6 9. An enterprise zone development agency created 7 pursuant to s. 290.0057; or 8 10. Such other agency as the director may, from time 9 to time, designate by rule. 10 11 In no event shall a contributing insurer have a financial 12 interest in the eligible sponsor. 13 (d) The project shall be located in an area designated 14 as an enterprise zone or a Front Porch Community pursuant to 15 s. 14.2015(9)(b) s. 290.0065. Any project designed to 16 construct or rehabilitate housing for low-income or 17 very-low-income households as defined in s. 420.9071(19) and 18 (28) low-income housing is exempt from the area requirement of 19 this paragraph. 20 (4) ADMINISTRATION.-- 21 (a)1. The Office of Tourism, Trade, and Economic 22 Development is authorized to adopt all rules necessary to 23 administer this section, including rules for the approval or 24 disapproval of proposals by insurers. 25 2. The decision of the director shall be in writing, 26 and, if approved, the proposal shall state the maximum credit 27 allowable to the insurer. A copy of the decision shall be 28 transmitted to the executive director of the Department of 29 Revenue, who shall apply such credit to the tax liability of 30 the insurer. 31 3. The office shall monitor all projects periodically, 71 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 in a manner consistent with available resources to ensure that 2 resources are utilized in accordance with this section; 3 however, each project shall be reviewed no less frequently 4 than once every 2 years. 5 4. The Office of Tourism, Trade, and Economic 6 Development shall, in consultation with the Department of 7 Community Affairs, the Florida Housing Finance Corporation, 8 and the statewide and regional housing and financial 9 intermediaries, market the availability of the community 10 contribution tax credit program to community-based 11 organizations. 12 (b) The Department of Revenue shall adopt any rules 13 necessary to ensure the orderly implementation and 14 administration of this section. 15 (5) DEFINITIONS.--For the purpose of this section: 16 (a) "Community contribution" means the grant by an 17 insurer of any of the following items: 18 1. Cash or other liquid assets. 19 2. Real property. 20 3. Goods or inventory. 21 4. Other physical resources which are identified by 22 the department. 23 (b) "Director" means the director of the Office of 24 Tourism, Trade, and Economic Development. 25 (c) "Local government" means any county or 26 incorporated municipality in the state. 27 (d) "Office" means the Office of Tourism, Trade, and 28 Economic Development. 29 (e) "Project" means an activity as defined in s. 30 220.03(1)(t) or the provision of educational programs and 31 materials by an eligible sponsor. any activity undertaken by 72 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 an eligible sponsor, as defined in subsection (2), which is 2 designed to construct, improve, or substantially rehabilitate 3 housing or commercial, industrial, or public resources and 4 facilities or to improve entrepreneurial and job-development 5 opportunities for low-income persons. 6 Section 27. Except as otherwise expressly provided in 7 this act, this act shall take effect July 1, 2001. 8 9 10 ================ T I T L E A M E N D M E N T =============== 11 And the title is amended as follows: 12 On page 1, line 1 through page 3, line 29 13 remove from the title of the bill: all of said lines 14 15 and insert in lieu thereof: 16 A bill to be entitled 17 An act relating to economic development; 18 amending s. 212.08, F.S.; revising certain 19 procedures and conditions relating to the sales 20 tax exemption for enterprise-zone building 21 materials and business property; extending the 22 community contribution tax credit provisions of 23 the enterprise zone program to the state sales 24 tax; amending s. 212.096, F.S.; redefining the 25 terms "eligible business" and "new employee"; 26 defining the terms "jobs" and "new job has been 27 created"; revising the computation procedures 28 of the enterprise-zone jobs credit against 29 sales tax; amending s. 212.098, F.S.; 30 redefining the term "eligible business"; 31 defining the term "qualified area"; deleting 73 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 provisions ranking qualified counties; limiting 2 the amount of tax credits available during any 3 one calendar year; providing for reduction or 4 waiver of certain financial match requirements 5 in rural areas by Rural Economic Development 6 Initiative agencies and organizations; amending 7 s. 220.03, F.S.; redefining the terms "new 8 employee" and "project"; defining the terms 9 "new job has been created" and "jobs"; amending 10 s. 220.181, F.S.; revising the computation 11 procedures of the enterprise-zone job credit 12 against the corporate income tax; amending s. 13 220.183, F.S.; revising the eligibility, 14 application, and administrative requirements of 15 the community contribution corporate income tax 16 credit program; increasing the limitation on 17 annual credits; amending s. 288.018, F.S.; 18 revising administration and uses of the 19 Regional Rural Development Grants Program; 20 creating s. 288.019, F.S.; providing for a 21 review and evaluation process of rural grants 22 by Rural Economic Development Initiative 23 agencies; amending s. 288.065, F.S.; expanding 24 the scope of the Rural Community Revolving Loan 25 Fund Program; amending s. 288.0656, F.S.; 26 revising the membership of the Rural Economic 27 Development Initiative; requiring an annual 28 designation of staff representatives; amending 29 s. 288.1088, F.S.; expanding eligible uses of 30 the Quick Action Closing Fund; amending s. 31 288.9015, F.S.; revising the duties of 74 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 Enterprise Florida, Inc.; amending s. 290.004, 2 F.S.; defining the term "rural enterprise 3 zone"; authorizing the Office of Tourism, 4 Trade, and Economic Development to designate an 5 enterprise zone in Sarasota County; providing 6 requirements with respect thereto; amending s. 7 290.00555, F.S.; removing the December 31, 8 1999, deadline for creation of satellite 9 enterprise zones by certain municipalities and 10 authorizing creation of such zones effective 11 retroactively to that date; providing duties of 12 the Office of Tourism, Trade, and Economic 13 Development; providing an application deadline 14 for businesses in such zones eligible for 15 certain sales and use tax incentives; amending 16 s. 290.0065, F.S.; providing for certain rural 17 enterprise zones; conforming agency references 18 to changes in program administration; 19 authorizing the Office of Tourism, Trade, and 20 Economic Development in consultation with 21 Enterprise Florida, Inc., to develop guidelines 22 relating to the designation of enterprise 23 zones; creating s. 290.00676, F.S.; authorizing 24 the Office of Tourism, Trade, and Economic 25 Development to amend the boundaries of a rural 26 enterprise zone and providing requirements with 27 respect thereto; creating s. 290.00677, F.S.; 28 modifying the employee residency requirements 29 for the enterprise-zone job credit against the 30 sales tax and corporate income tax if the 31 business is located in a rural enterprise zone; 75 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717
HOUSE AMENDMENT Bill No. HB 1225 Barcode 933717 Amendment No. 01 (for drafter's use only) 1 creating s. 290.00694, F.S.; authorizing the 2 Office of Tourism, Trade, and Economic 3 Development to designate rural champion 4 communities as enterprise zones; providing 5 requirements with respect thereto; amending s. 6 290.007, F.S.; revising the list of enterprise 7 zone incentives to reflect the creation of a 8 community contribution sales tax credit 9 program; amending s. 290.048, F.S.; authorizing 10 the Department of Community Affairs to 11 establish advisory committees and solicit 12 participation with respect to administering the 13 Florida Small Cities Community Development 14 Block Grant Program; repealing s. 290.049, 15 F.S., relating to the Community Development 16 Block Grant Advisory Council; repealing s. 17 370.28(4), F.S., which provides conditions for 18 tax incentives in enterprise zone net-ban 19 communities; amending s. 420.507, F.S.; 20 authorizing the Florida Housing Finance 21 Corporation to create a recognition program to 22 support affordable housing; amending s. 23 624.5105, F.S.; increasing the annual 24 limitation on community contribution tax 25 credits; conforming definitions; revising 26 eligibility and administrative requirements; 27 providing effective dates. 28 29 30 31 76 File original & 9 copies 03/28/01 hbt0002 04:33 pm 01225-edit-933717