House Bill hb1225
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Florida House of Representatives - 2001 HB 1225
By Representatives Pickens, Kilmer and Richardson
1 A bill to be entitled
2 An act relating to economic development;
3 amending s. 212.096, F.S.; revising a
4 definition and defining "jobs"; increasing the
5 enterprise zone jobs credit against the sales
6 tax and revising the method of computing the
7 credit; providing an increased credit for a
8 business located in a rural enterprise zone;
9 increasing the period during which the credit
10 may be allowed; amending s. 212.098, F.S.;
11 providing that a business eligible for the
12 qualified target industry business tax refund
13 is eligible for the rural job tax credit
14 program; amending s. 220.03, F.S.; revising a
15 definition and defining "jobs"; amending s.
16 220.181, F.S.; increasing the enterprise zone
17 jobs credit against the corporate income tax
18 and revising the method of computing the
19 credit; providing an increased credit for a
20 business located in a rural enterprise zone;
21 increasing the period during which the credit
22 may be allowed; amending s. 288.018, F.S.;
23 authorizing the Office of Tourism, Trade, and
24 Economic Development to contract with
25 Enterprise Florida, Inc., to administer the
26 Regional Rural Development Grants Program;
27 creating s. 288.0185, F.S.; directing the
28 member agencies of the Rural Economic
29 Development Initiative (REDI) to review and
30 develop modifications for grant and loan
31 application evaluation criteria and scoring
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1 procedures to ensure access for rural counties
2 and providing requirements with respect
3 thereto; providing for review of future rules,
4 programs, criteria, and processes; creating s.
5 288.019, F.S.; directing the REDI member
6 agencies to develop proposals to waive or
7 reduce financial match requirements for
8 projects in rural communities; authorizing use
9 of certain funds or donations as matches;
10 creating s. 288.0195, F.S.; providing for
11 review by REDI agencies of state agency
12 proposed rules; amending s. 288.065, F.S.;
13 providing that an economic development
14 organization substantially underwritten by a
15 unit of local government is eligible for loans
16 under the Rural Community Development Revolving
17 Loan Fund Program; amending s. 290.004, F.S.;
18 defining "rural enterprise zone"; deleting
19 obsolete definitions; amending ss. 290.0055,
20 290.0056, and 290.0058, F.S.; correcting
21 obsolete references; deleting a time limitation
22 on submission of applications for enterprise
23 zone boundary changes; amending s. 290.0065,
24 F.S.; including Enterprise Florida, Inc., in
25 certain duties relating to designation of
26 enterprise zones; including rural champion
27 communities in areas that may be designated as
28 state rural enterprise zones; providing for the
29 development of certain guidelines by the Office
30 of Tourism, Trade, and Economic Development in
31 consultation with other agencies; revising
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1 requirements relating to amendment of
2 boundaries of enterprise zones designated by
3 the state; creating s. 290.00676, F.S.;
4 authorizing the Office of Tourism, Trade, and
5 Economic Development to amend the boundaries of
6 a rural enterprise zone and providing
7 requirements with respect thereto; creating s.
8 290.00677, F.S.; modifying the employee
9 residency requirements for the enterprise zone
10 job credit against the sales tax and corporate
11 income tax, if the business is located in a
12 rural enterprise zone; modifying the employee
13 residency requirements for maximum exemptions
14 or credits with respect to the sales tax
15 credits for building materials used in the
16 rehabilitation of real property in an
17 enterprise zone, for business property used in
18 an enterprise zone, and for electrical energy
19 used in an enterprise zone, and the corporate
20 income tax enterprise zone property tax credit,
21 if the business is located in a rural
22 enterprise zone; creating s. 290.00694, F.S.;
23 authorizing the Office of Tourism, Trade, and
24 Economic Development to designate rural
25 champion communities or communities within a
26 designated rural area of critical economic
27 concern as enterprise zones; providing
28 requirements with respect thereto; providing an
29 effective date.
30
31 Be It Enacted by the Legislature of the State of Florida:
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1 Section 1. Paragraph (c) of subsection (1) of section
2 212.096, Florida Statutes, is amended, paragraph (d) is added
3 to said subsection, and subsection (2) and paragraph (a) of
4 subsection (3) of said section are amended, to read:
5 212.096 Sales, rental, storage, use tax; enterprise
6 zone jobs credit against sales tax.--
7 (1) For the purposes of the credit provided in this
8 section:
9 (c) "New employee" means a person residing in an
10 enterprise zone, a qualified Workforce Investment Job Training
11 Partnership Act classroom training participant, or a welfare
12 transition program participant who begins employment with an
13 eligible business after July 1, 1995, and who has not been
14 previously employed within the preceding 12 months by the
15 eligible business, or a successor eligible business, claiming
16 the credit allowed by this section.
17 (d) "Jobs" means full-time equivalent positions, as
18 such terms are consistent with terms used by the Department of
19 Labor and Employment Security and the United States Department
20 of Labor for purposes of unemployment compensation tax
21 administration and employment estimation, resulting directly
22 from a project in this state. This number does not include
23 temporary construction jobs involved with the construction of
24 facilities for a project or any jobs that have previously been
25 included in any application for tax refunds under s.
26 220.181(1).
27
28 A person shall be deemed to be employed if the person performs
29 duties in connection with the operations of the business on a
30 regular, full-time basis, provided the person is performing
31 such duties for an average of at least 36 hours per week each
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1 month, or a part-time basis, provided the person is performing
2 such duties for an average of at least 20 hours per week each
3 month throughout the year. The person must be performing such
4 duties at a business site located in the enterprise zone.
5 (2)(a) It is the legislative intent to encourage the
6 provision of meaningful employment opportunities which will
7 improve the quality of life of those employed and to encourage
8 economic expansion of enterprise zones and the state.
9 Therefore, beginning July 1, 1995, upon an affirmative showing
10 by a business to the satisfaction of the department that the
11 requirements of this section have been met, the business shall
12 be allowed a credit against the tax remitted under this
13 chapter.
14 (b) The credit shall be 20 computed as follows:
15 1. Ten percent of the monthly wages paid in this state
16 for to each new job created, unless the business is located in
17 a rural enterprise zone, as defined in s. 290.004(7), in which
18 case the credit shall be 30 percent of the wages paid employee
19 whose wages do not exceed $1,500 a month. If no less than 20
20 percent of the employees of the business are residents of an
21 enterprise zone, excluding temporary and part-time employees,
22 the credit shall be 30 computed as 15 percent of the monthly
23 wages paid in this state for to each new job created, unless
24 the business is located in a rural enterprise zone, as defined
25 in s. 290.004(7), in which case the credit shall be 45 percent
26 of the wages paid. employee;
27 2. Five percent of the first $1,500 of actual monthly
28 wages paid in this state for each new employee whose wages
29 exceed $1,500 a month; or
30
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1 3. Fifteen percent of the first $1,500 of actual
2 monthly wages paid in this state for each new employee who is
3 a WAGES Program participant pursuant to chapter 414.
4
5 For purposes of this paragraph, monthly wages shall be
6 computed as one-twelfth of the expected annual wages paid to
7 the such employee. The amount paid as wages to a new employee
8 is the compensation paid to such employee that is subject to
9 unemployment tax. The credit shall be allowed for up to 24 12
10 consecutive months, beginning with the first tax return due
11 pursuant to s. 212.11 after approval by the department.
12 (3) In order to claim this credit, an eligible
13 business must file under oath with the governing body or
14 enterprise zone development agency having jurisdiction over
15 the enterprise zone where the business is located, as
16 applicable, a statement which includes:
17 (a) For each new job employee for which whom this
18 credit is claimed, the employee's name and place of residence,
19 including the identifying number assigned pursuant to s.
20 290.0065 to the enterprise zone in which the employee resides
21 if the new employee is a person residing in an enterprise
22 zone, and, if applicable, documentation that the employee is a
23 qualified Workforce Investment Job Training Partnership Act
24 classroom training participant or a welfare transition program
25 participant.
26 Section 2. Paragraph (a) of subsection (1) of section
27 212.098, Florida Statutes, is amended to read:
28 212.098 Rural Job Tax Credit Program.--
29 (1) As used in this section, the term:
30 (a) "Eligible business" means any sole proprietorship,
31 firm, partnership, or corporation that is located in a
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1 qualified county and is predominantly engaged in, or is
2 headquarters for a business predominantly engaged in,
3 activities usually provided for consideration by firms
4 classified within the following standard industrial
5 classifications: SIC 01-SIC 09 (agriculture, forestry, and
6 fishing); SIC 20-SIC 39 (manufacturing); SIC 422 (public
7 warehousing and storage); SIC 70 (hotels and other lodging
8 places); SIC 7391 (research and development); SIC 7992 (public
9 golf courses); and SIC 7996 (amusement parks). Any business
10 eligible for the qualified target industry business tax refund
11 under s. 288.106 is also an eligible business. A call center
12 or similar customer service operation that services a
13 multistate market or an international market is also an
14 eligible business. In addition, the Office of Tourism, Trade,
15 and Economic Development may, as part of its final budget
16 request submitted pursuant to s. 216.023, recommend additions
17 to or deletions from the list of standard industrial
18 classifications used to determine an eligible business, and
19 the Legislature may implement such recommendations. Excluded
20 from eligible receipts are receipts from retail sales, except
21 such receipts for hotels and other lodging places classified
22 in SIC 70, public golf courses in SIC 7992, and amusement
23 parks in SIC 7996. For purposes of this paragraph, the term
24 "predominantly" means that more than 50 percent of the
25 business's gross receipts from all sources is generated by
26 those activities usually provided for consideration by firms
27 in the specified standard industrial classification. The
28 determination of whether the business is located in a
29 qualified county and the tier ranking of that county must be
30 based on the date of application for the credit under this
31
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1 section. Commonly owned and controlled entities are to be
2 considered a single business entity.
3 Section 3. Paragraph (q) of subsection (1) of section
4 220.03, Florida Statutes, is amended, and paragraph (ff) is
5 added to said subsection, to read:
6 220.03 Definitions.--
7 (1) SPECIFIC TERMS.--When used in this code, and when
8 not otherwise distinctly expressed or manifestly incompatible
9 with the intent thereof, the following terms shall have the
10 following meanings:
11 (q) "New employee," for the purposes of the enterprise
12 zone jobs credit, means a person residing in an enterprise
13 zone, a qualified Workforce Investment Job Training
14 Partnership Act classroom training participant, or a WAGES
15 Program participant employed at a business located in an
16 enterprise zone who begins employment in the operations of the
17 business after July 1, 1995, and who has not been previously
18 employed within the preceding 12 months by the business or a
19 successor business claiming the credit pursuant to s. 220.181.
20 A person shall be deemed to be employed by such a business if
21 the person performs duties in connection with the operations
22 of the business on a full-time basis, provided she or he is
23 performing such duties for an average of at least 36 hours per
24 week each month, or a part-time basis, provided she or he is
25 performing such duties for an average of at least 20 hours per
26 week each month throughout the year. The person must be
27 performing such duties at a business site located in an
28 enterprise zone. The provisions of this paragraph shall expire
29 and be void on June 30, 2005.
30 (ff) "Jobs," for purposes of the enterprise zone jobs
31 credit, means full-time equivalent positions, as such terms
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1 are consistent with terms used by the Department of Labor and
2 Employment Security and the United States Department of Labor
3 for purposes of unemployment compensation tax administration
4 and employment estimation, resulting directly from a project
5 in this state. This number does not include temporary
6 construction jobs involved with the construction of facilities
7 for a project or any jobs that have previously been included
8 in any application for tax refunds under s. 212.096.
9 Section 4. Paragraph (a) of subsection (1), paragraph
10 (a) of subsection (2), and subsection (7) of section 220.181,
11 Florida Statutes, are amended to read:
12 220.181 Enterprise zone jobs credit.--
13 (1)(a) Beginning July 1, 1995, There shall be allowed
14 a credit against the tax imposed by this chapter to any
15 business located in an enterprise zone which employs one or
16 more new employees. The credit shall be computed as follows:
17 1. Twenty Ten percent of the actual monthly wages paid
18 in this state for to each new job created, unless the business
19 is located in a rural enterprise zone, as defined in s.
20 290.004(7), in which case the credit shall be 30 percent of
21 the wages paid employee whose wages do not exceed $1,500 a
22 month. If no less than 20 percent of the employees of the
23 business are residents of an enterprise zone, excluding
24 temporary and part-time employees, the credit shall be
25 computed as 30 15 percent of the actual monthly wages paid,
26 unless the business is located in a rural enterprise zone, as
27 defined in s. 290.004(7), in which case the credit shall be 45
28 percent of the wages paid in this state for to each new job
29 employee, for a period of up to 24 12 consecutive months;
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1 2. Five percent of the first $1,500 of actual monthly
2 wages paid in this state for each new employee whose wages
3 exceed $1,500 a month; or
4 2.3. Fifteen percent of the first $1,500 of actual
5 monthly wages paid in this state for each new employee who is
6 a welfare transition program participant.
7 (2) When filing for an enterprise zone jobs credit, a
8 business must file under oath with the governing body or
9 enterprise zone development agency having jurisdiction over
10 the enterprise zone where the business is located, as
11 applicable, a statement which includes:
12 (a) For each new job employee for which whom this
13 credit is claimed, the employee's name and place of residence
14 during the taxable year, including the identifying number
15 assigned pursuant to s. 290.0065 to the enterprise zone in
16 which the new employee resides if the new employee is a person
17 residing in an enterprise zone, and, if applicable,
18 documentation that the employee is a qualified Workforce
19 Investment Job Training Partnership Act classroom training
20 participant or a welfare transition program participant.
21 (7) Any business which has claimed this credit shall
22 not be allowed any credit under the provision of s. 212.096
23 for any new employee beginning employment after July 1, 1995.
24 The provisions of this subsection shall not apply when a
25 corporation converts to an S corporation for purposes of
26 compliance with the Internal Revenue Code of 1986, as amended;
27 however, no corporation shall be allowed the benefit of this
28 credit and the credit under s. 212.096 either for the same new
29 employee or for the same taxable year. In addition, such a
30 corporation shall not be allowed any credit under s. 212.096
31 until it has filed notice of its intent to change its status
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1 for tax purposes and until its final return under this chapter
2 for the taxable year prior to such change has been filed.
3 Section 5. Subsection (3) of section 288.018, Florida
4 Statutes, is amended to read:
5 288.018 Regional Rural Development Grants Program.--
6 (3) The Office of Tourism, Trade, and Economic
7 Development may expend up to $600,000 each fiscal year from
8 funds appropriated to the Rural Community Development
9 Revolving Loan Fund for the purposes outlined in this section.
10 The Office of Tourism, Trade, and Economic Development may
11 contract with Enterprise Florida, Inc., for the administration
12 of the purposes specified in this section. Funds released to
13 Enterprise Florida, Inc., for this purpose shall be released
14 quarterly and shall be calculated based on the applications in
15 process.
16 Section 6. Section 288.0185, Florida Statutes, is
17 created to read:
18 288.0185 Rural considerations in grant review and
19 evaluation processes.--Notwithstanding any other provision of
20 law, and to the fullest extent possible, the member agencies
21 of the Rural Economic Development Initiative (REDI) as defined
22 in s. 288.0656 shall review all grant and loan application
23 evaluation criteria to ensure the fullest access for rural
24 counties to resources available throughout the state.
25 (1) Each REDI agency shall review all evaluation and
26 scoring procedures and develop modifications to those
27 procedures which minimize the impact of a project within a
28 rural community.
29 (2) Evaluation criteria and scoring procedures shall
30 provide for an appropriate ranking based on the proportionate
31
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1 impact of projects on a rural county when compared with
2 similar project impacts on an urban area.
3 (3) Evaluation criteria and scoring procedures shall
4 recognize the disparity of participation for an equal level of
5 financial support from an urban county and a rural county.
6 (a) The evaluation criteria should weigh 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 for a rural county that is experiencing
11 financial distress because of elevated unemployment at a rate
12 that exceeds the state's average by 5 percentage points or
13 because of the loss of its ad valorem base.
14 (4) For existing programs, the modified evaluation
15 criteria and scoring procedures must be delivered to the
16 Office of Tourism, Trade, and Economic Development for
17 distribution to the REDI agencies. The REDI agencies shall
18 review and make comments. Future rules, programs, evaluation
19 criteria, and scoring processes shall be brought before a REDI
20 meeting for review, discussion, and recommendation to allow
21 rural counties fuller access to the state's resources.
22 Section 7. Section 288.019, Florida Statutes, is
23 created to read:
24 288.019 Reduction or waiver of financial match
25 requirements.--Notwithstanding any other provision of law, the
26 member agencies of the Rural Economic Development Initiative
27 (REDI) as defined in s. 288.0656 shall review the financial
28 match requirements for projects in rural communities as
29 defined in s. 288.0656.
30 (1) Each agency shall develop a proposal to waive or
31 reduce the match requirement for rural communities.
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1 (2) Waivers and reductions shall at least be
2 proportionate to the fiscal hardship of the county or
3 community.
4 (3) Any other funds available to the project may be
5 used for financial match of federal programs when there is
6 fiscal hardship and the match may not be waived or reduced.
7 (4) When match requirements are not reduced or
8 eliminated, donations of land, though usually not recognized
9 as an in-kind match, may be permitted.
10 (5) To the fullest extent possible agencies shall
11 expedite the rule adoption and amendment process if necessary
12 to incorporate the reduction in match by rural communities in
13 fiscal distress.
14 (6) REDI shall include in its annual report an
15 evaluation of the status of changes to rules, the number of
16 awards made with waivers, and any recommendations for future
17 changes.
18 Section 8. Section 288.0195, Florida Statutes, is
19 created to read:
20 288.0195 Review of proposed rules.--
21 (1) State agencies shall ensure that all proposed
22 rules are submitted to the Office of Tourism, Trade, and
23 Economic Development for review by the Rural Economic
24 Development Initiative (REDI) agencies.
25 (2) Proposed rules shall be delivered to the Office of
26 Tourism, Trade, and Economic Development for distribution to
27 the REDI agencies. A meeting of REDI agencies shall be called
28 within 30 days after receipt of such proposals for REDI
29 comment and recommendations on each proposal.
30 Section 9. Subsections (1) and (2) of section 288.065,
31 Florida Statutes, are amended to read:
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1 288.065 Rural Community Development Revolving Loan
2 Fund.--
3 (1) The Rural Community Development Revolving Loan
4 Fund Program is established in the Office of Tourism, Trade,
5 and Economic Development to facilitate the use of existing
6 federal, state, and local financial resources by providing
7 local governments and economic development organizations
8 substantially underwritten by a unit of local government with
9 financial assistance to further promote the economic viability
10 of rural communities. These funds may be used to finance
11 initiatives directed toward maintaining or developing the
12 economic base of rural communities, especially initiatives
13 addressing employment opportunities for residents of these
14 communities.
15 (2) The program shall provide for long-term loans,
16 loan guarantees, and loan loss reserves to units of local
17 governments or economic development organizations
18 substantially underwritten by a unit of local government
19 within counties with populations of 75,000 or less, or within
20 any county that has a population of 100,000 or less and that
21 is contiguous to a county with a population of 75,000 or less,
22 as determined by the most recent official estimate pursuant to
23 s. 186.901, residing in incorporated and unincorporated areas
24 of the county. Requests for loans shall be made by application
25 to the Office of Tourism, Trade, and Economic Development.
26 Loans shall be made pursuant to agreements specifying the
27 terms and conditions agreed to between the applicant local
28 government and the Office of Tourism, Trade, and Economic
29 Development. The loans shall be the legal obligations of the
30 applicant local government. All repayments of principal and
31 interest shall be returned to the loan fund and made available
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1 for loans to other applicants. However, in a rural area of
2 critical economic concern designated by the Governor, and upon
3 approval by the Office of Tourism, Trade, and Economic
4 Development, repayments of principal and interest may be
5 retained by the applicant a unit of local government if such
6 repayments are dedicated and matched to fund regionally based
7 economic development organizations representing the rural area
8 of critical economic concern.
9 Section 10. Section 290.004, Florida Statutes, is
10 amended to read:
11 290.004 Definitions relating to Florida Enterprise
12 Zone Act.--As used in ss. 290.001-290.016:
13 (1) "Community investment corporation" means a black
14 business investment corporation, a certified development
15 corporation, a small business investment corporation, or other
16 similar entity incorporated under Florida law that has limited
17 its investment policy to making investments solely in minority
18 business enterprises.
19 (2) "Department" means the Department of Commerce.
20 (2)(3) "Director" means the director of the Office of
21 Tourism, Trade, and Economic Development.
22 (3)(4) "Governing body" means the council or other
23 legislative body charged with governing the county or
24 municipality.
25 (4)(5) "Interagency coordinating council" means the
26 Enterprise Zone Interagency Coordinating Council created
27 pursuant to s. 290.009.
28 (5)(6) "Minority business enterprise" has the same
29 meaning as in s. 288.703.
30 (6)(7) "Office" means the Office of Tourism, Trade,
31 and Economic Development.
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1 (7) "Rural enterprise zone" means an enterprise zone
2 that is nominated by a county having a population of 75,000 or
3 fewer, or a county having a population of 100,000 or fewer
4 which is contiguous to a county having a population of 75,000
5 or fewer, or by a municipality in such a county, or by such a
6 county and one or more municipalities. An enterprise zone
7 designated in accordance with s. 370.28 or s. 290.0065(5)(b)
8 is considered to be a rural enterprise zone.
9 (8) "Secretary" means the Secretary of Commerce.
10 (8)(9) "Small business" has the same meaning as in s.
11 288.703.
12 Section 11. Subsections (1) and (6) of section
13 290.0055, Florida Statutes, are amended to read:
14 290.0055 Local nominating procedure.--
15 (1) Any county or municipality, or a county and one or
16 more municipalities together, may apply to the Office of
17 Tourism, Trade, and Economic Development department for the
18 designation of an area as an enterprise zone after completion
19 of the following:
20 (a) The adoption by the governing body or bodies of a
21 resolution which:
22 1. Finds that an area exists in such county or
23 municipality, or in both the county and one or more
24 municipalities, which chronically exhibits extreme and
25 unacceptable levels of poverty, unemployment, physical
26 deterioration, and economic disinvestment;
27 2. Determines that the rehabilitation, conservation,
28 or redevelopment, or a combination thereof, of such area is
29 necessary in the interest of the public health, safety, and
30 welfare of the residents of such county or municipality, or
31 such county and one or more municipalities; and
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1 3. Determines that the revitalization of such area can
2 occur only if the private sector can be induced to invest its
3 own resources in productive enterprises that build or rebuild
4 the economic viability of the area.
5 (b) The creation of an enterprise zone development
6 agency pursuant to s. 290.0056.
7 (c) The creation and adoption of a strategic plan
8 pursuant to s. 290.0057.
9 (6)(a) The office department may approve a change in
10 the boundary of any enterprise zone which was designated
11 pursuant to s. 290.0065 on or before July 1, 1995, if such
12 change is limited to a deletion of area from the enterprise
13 zone and if, after the change is made, the enterprise zone
14 continues to satisfy the requirements of subsections (3), (4),
15 and (5).
16 (b) The governing body of the jurisdiction which
17 authorized the application for an enterprise zone may apply
18 for a change in boundary by adopting a resolution that:
19 1. States with particularity the reasons for the
20 change; and
21 2. Describes specifically and, to the extent required
22 by the office department, the boundary change to be made.
23 (c) All applications for boundary changes must be
24 submitted to the department by April 1, 1997. Any boundary
25 changes approved shall be effective July 1, 1997.
26 Section 12. Subsection (12) of section 290.0056,
27 Florida Statutes, is amended to read:
28 290.0056 Enterprise zone development agency.--
29 (12) In the event that the nominated area selected by
30 the governing body is not designated a state enterprise zone,
31 the governing body may dissolve the agency after receiving
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1 notification from the department or the office that the area
2 was not designated as an enterprise zone.
3 Section 13. Subsections (1) and (5) of section
4 290.0058, Florida Statutes, are amended to read:
5 290.0058 Tests of pervasive poverty, unemployment, and
6 general distress.--
7 (1) In determining whether an area suffers from
8 pervasive poverty, unemployment, and general distress, for
9 purposes of ss. 290.0055 and 290.0065, the governing body and
10 the office department shall use data from the most current
11 decennial census, and from information published by the Bureau
12 of the Census and the Bureau of Labor Statistics. The data
13 shall be comparable in point or period of time and methodology
14 employed.
15 (5) In making the calculations required by this
16 section, the local government and the office department shall
17 round all fractional percentages of one-half percent or more
18 up to the next highest whole percentage figure.
19 Section 14. Subsections (1), (4), (5), (6), (7), and
20 (9) of section 290.0065, Florida Statutes, are amended to
21 read:
22 290.0065 State designation of enterprise zones.--
23 (1) Upon application of the governing body of a county
24 or municipality or of a county and one or more municipalities
25 jointly pursuant to s. 290.0055, Enterprise Florida, Inc., and
26 the office department, in consultation with the interagency
27 coordinating council, shall determine which areas nominated by
28 such governing bodies meet the criteria outlined in s.
29 290.0055 and are the most appropriate for designation as state
30 enterprise zones. The office department is authorized to
31 designate up to 5 areas within each of the categories
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1 established in subparagraphs (3)(a)1., 2., 3., 4., and 5.,
2 except that the office department may only designate a total
3 of 20 areas as enterprise zones. The office department shall
4 not designate more than three enterprise zones in any one
5 county. All designations, including any provision for
6 redesignations, of state enterprise zones pursuant to this
7 section shall be effective July 1, 1995.
8 (4)(a) Notwithstanding s. 290.0055, any area existing
9 as a state enterprise zone as of the effective date of this
10 section and originally approved through a joint application
11 from a county and municipality, or through an application from
12 a county as defined in s. 125.011(1), shall be redesignated as
13 a state enterprise zone upon the creation of an enterprise
14 zone development agency pursuant to s. 290.0056 and the
15 completion of a strategic plan pursuant to s. 290.0057. Any
16 area redesignated pursuant to this subsection, other than an
17 area located in a county defined in s. 125.011(1), may be
18 relocated or modified by the appropriate governmental bodies.
19 Such relocation or modification shall be identified in the
20 strategic plan and shall meet the requirements for designation
21 as established by s. 290.005. Any relocation or modification
22 shall be submitted on or before June 1, 1996.
23 (b) The office department shall place any area
24 designated as a state enterprise zone pursuant to this
25 subsection in the appropriate category established in
26 subsection (3), and include such designations within the
27 limitations on state enterprise zone designations set out in
28 subsection (1).
29 (c) Any county or municipality having jurisdiction
30 over an area designated as a state enterprise zone pursuant to
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1 this subsection, other than a county defined by s. 125.011(1),
2 may not apply for designation of another area.
3 (5) Notwithstanding s. 290.0055, an area designated as
4 a federal empowerment zone or enterprise community pursuant to
5 Title XIII of the Omnibus Budget Reconciliation Act of 1993,
6 the Taxpayer Relief Act of 1997, or the 1999 Agricultural
7 Appropriations Act shall be designated a state enterprise zone
8 as follows:
9 (a) An area designated as an urban empowerment zone or
10 urban enterprise community pursuant to Title XIII of the
11 Omnibus Budget Reconciliation Act of 1993 or the Taxpayer
12 Relief Act of 1997 shall be designated a state enterprise zone
13 by the office department upon completion of the requirements
14 set out in paragraph (d), except in the case of a county as
15 defined in s. 125.011(1) which, notwithstanding s. 290.0055,
16 may incorporate and include such designated urban empowerment
17 zone or urban enterprise community areas within the boundaries
18 of its state enterprise zones without any limitation as to
19 size.
20 (b) An area designated as a rural empowerment zone or
21 rural enterprise community pursuant to Title XIII of the
22 Omnibus Budget Reconciliation Act of 1993 or the 1999
23 Agricultural Appropriations Act or an area designated as a
24 rural champion community under the Taxpayer Relief Act of 1997
25 shall be designated a state rural enterprise zone by the
26 office department upon completion of the requirements set out
27 in paragraph (d). The state rural enterprise zone so
28 designated may incorporate and include such designated rural
29 empowerment zone, rural enterprise community, or rural
30 champion community within its boundaries without any
31 limitation as to size.
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1 (c) Any county or municipality having jurisdiction
2 over an area designated as a state enterprise zone pursuant to
3 this subsection, other than a county defined in s. 125.011(1),
4 may not apply for designation of another area.
5 (d) Prior to designating such areas as state
6 enterprise zones, the office department shall ensure that the
7 governing body having jurisdiction over the zone submits the
8 strategic plan required pursuant to 7 C.F.R. part 25 or 24
9 C.F.R. part 597 to the office department, and creates an
10 enterprise zone development agency pursuant to s. 290.0056.
11 (e) The office department shall place any area
12 designated as a state enterprise zone pursuant to this
13 subsection in the appropriate category established in
14 subsection (3), and include such designations within the
15 limitations on state enterprise zone designations set out in
16 subsection (1).
17 (6)(a) The office department, in consultation with
18 Enterprise Florida, Inc., and the interagency coordinating
19 council, may develop guidelines shall promulgate any rules
20 necessary for the approval of areas under this section by the
21 director secretary.
22 (b) The guidelines may Such rules shall provide for
23 the measurement of pervasive poverty, unemployment, and
24 general distress using the criteria outlined by s. 290.0058.
25 (c) The guidelines may Such rules shall provide for
26 the evaluation of the strategic plan and local fiscal and
27 regulatory incentives for effectiveness, including how the
28 following key principles will be implemented by the governing
29 body or bodies:
30 1. Economic opportunity, including job creation within
31 the community and throughout the region, as well as
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1 entrepreneurial initiatives, small business expansion, and
2 training for jobs that offer upward mobility.
3 2. Sustainable community development that advances the
4 creation of livable and vibrant communities through
5 comprehensive approaches that coordinate economic, physical,
6 community, and human development.
7 3. Community-based partnerships involving the
8 participation of all segments of the community.
9 4. Strategic vision for change that identifies how the
10 community will be revitalized. This vision should include
11 methods for building on community assets and coordinate a
12 response to community needs in a comprehensive fashion. This
13 vision should provide goals and performance benchmarks for
14 measuring progress and establish a framework for evaluating
15 and adjusting the strategic plan.
16 5. Local fiscal and regulatory incentives enacted
17 pursuant to s. 290.0057(1)(e). These incentives should induce
18 economic revitalization, including job creation and small
19 business expansion.
20 (d) The guidelines may Such rules shall provide
21 methods for evaluating the prospects for new investment and
22 economic development in the area, including a review and
23 evaluation of any previous state enterprise zones located in
24 the area.
25 (7) Upon approval by the director secretary of a
26 resolution authorizing an area to be an enterprise zone
27 pursuant to this section, the office department shall assign a
28 unique identifying number to that resolution. The office
29 department shall provide the Department of Revenue and
30 Enterprise Florida, Inc., with a copy of each resolution
31 approved, together with its identifying number.
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1 (9) Upon recommendation by Enterprise Florida, Inc.,
2 the Office of Tourism, Trade, and Economic Development may
3 amend the boundaries of any enterprise zone designated by the
4 state pursuant to this section, consistent with the
5 categories, criteria, and limitations imposed in this section
6 upon the establishment of such enterprise zone and only if
7 consistent with the determinations made in s. 290.0058(2).
8 Section 15. Section 290.00676, Florida Statutes, is
9 created to read:
10 290.00676 Amendment of rural enterprise zone
11 boundaries.--Notwithstanding any other provision of law, upon
12 recommendation by Enterprise Florida, Inc., the Office of
13 Tourism, Trade, and Economic Development may approve a request
14 to amend the boundaries of rural enterprise zones. For
15 purposes of boundary amendments, an enterprise zone designated
16 under s. 370.28 is considered a rural enterprise zone and is
17 eligible for amendment of its boundaries. Boundary amendments
18 authorized by this section are subject to the following
19 requirements:
20 (1) The amendment may increase the total size of the
21 rural enterprise zone up to 20 square miles.
22 (2) The amendment may increase the number of
23 noncontiguous areas by one, if that noncontiguous area has
24 zero population. For purposes of this subsection, the
25 pervasive poverty criteria may be set aside for the addition
26 of a noncontiguous parcel.
27 (3) The local enterprise zone development agency must
28 request the amendment from Enterprise Florida, Inc., before
29 December 30, 2001. The request must contain maps and
30 sufficient information to allow the office to determine the
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1 number of noncontiguous areas and the total size of the rural
2 enterprise zone.
3 Section 16. Section 290.00677, Florida Statutes, is
4 created to read:
5 290.00677 Rural enterprise zones; special
6 qualifications.--
7 (1) Notwithstanding the enterprise zone residency
8 requirements set out in ss. 212.096(1)(c) and 220.03(1)(q),
9 businesses located in rural enterprise zones may receive the
10 credit provided under s. 212.096 or s. 220.181 for hiring any
11 person in a new job within the jurisdiction of a rural county,
12 as defined by s. 288.106(1)(r). All other provisions of ss.
13 212.096, 220.03(1)(q), and 220.181 apply to such businesses.
14 (2) Notwithstanding the requirement specified in ss.
15 212.08(5)(g)5., (5)(h)5., and (15)(a), 212.096(2)(b)1.,
16 220.181(1)(a)1., and 220.182(1)(b) that at least 20 percent of
17 a business's employees, excluding temporary and part-time
18 employees, must be residents of an enterprise zone for the
19 business to qualify for the maximum exemption or credit
20 provided in ss. 212.08(5)(g) and (h) and (15),
21 212.096(2)(b)1., 220.181(1)(a)1., and 220.182, a business that
22 is located in a rural enterprise zone is qualified for those
23 maximum exemptions or credits if at least 20 percent of such
24 employees of the business are residents of a rural enterprise
25 zone as defined by s. 290.004(7). All other provisions of ss.
26 212.08(5)(g) and (h) and (15), 212.096, 220.181, and 220.182
27 apply to such business.
28 Section 17. Section 290.00694, Florida Statutes, is
29 created to read:
30 290.00694 Enterprise zone designation for rural
31 communities.--An area designated as a rural champion community
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1 under the Taxpayer Relief Act of 1997 or a community within a
2 designated rural area of critical economic concern may apply
3 to Enterprise Florida, Inc., for designation as an enterprise
4 zone. The application must be submitted by December 31, 2001.
5 Notwithstanding the provisions of s. 290.0065 limiting the
6 total number of enterprise zones designated and the number of
7 enterprise zones within a population category, the Office of
8 Tourism, Trade, and Economic Development may designate
9 enterprise zones under this section. Upon completion of the
10 requirements set out in s. 290.0065(5)(d), the Office of
11 Tourism, Trade, and Economic Development shall establish the
12 initial effective date of the enterprise zones designated
13 under this section.
14 Section 18. This act shall take effect July 1, 2001.
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2 HOUSE SUMMARY
3
Increases the enterprise zone jobs credits against the
4 sales tax and corporate income tax and revises the method
of computing the credits. Provides increased credits for
5 a business located in a rural enterprise zone. Increases
the period during which the credits may be allowed.
6 Provides that a business eligible for the qualified
target industry business tax refund is eligible for the
7 rural job tax credit program.
8
Authorizes the Office of Tourism, Trade, and Economic
9 Development to contract with Enterprise Florida, Inc., to
administer the Regional Rural Development Grants Program.
10 Provides duties of the member agencies of the Rural
Economic Development Initiative with respect to review
11 and modification of grant and loan application evaluation
criteria and scoring procedures to ensure rural access,
12 waiver or reduction of financial match requirements for
rural projects, and review of proposed rules. Provides
13 that an economic development organization substantially
underwritten by a unit of local government is eligible
14 for loans under the Rural Community Development Revolving
Loan Fund Program.
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16 Revises provisions relating to enterprise zones. Corrects
obsolete references. Revises requirements relating to
17 boundary changes. Provides certain duties of Enterprise
Florida, Inc. Authorizes the Office of Tourism, Trade,
18 and Economic Development to amend the boundaries of a
rural enterprise zone and to designate certain rural
19 areas as enterprise zones. Modifies employee residency
requirements for various enterprise zone tax credits if
20 the business is located in a rural enterprise zone.
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