House Bill hb1225e1

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                                          HB 1225, First Engrossed



  1                      A bill to be entitled

  2         An act relating to economic development;

  3         amending s. 212.08, F.S.; revising certain

  4         procedures and conditions relating to the sales

  5         tax exemption for enterprise-zone building

  6         materials and business property; extending the

  7         community contribution tax credit provisions of

  8         the enterprise zone program to the state sales

  9         tax; amending s. 212.096, F.S.; redefining the

10         terms "eligible business" and "new employee";

11         defining the terms "jobs" and "new job has been

12         created"; revising the computation procedures

13         of the enterprise-zone jobs credit against

14         sales tax; amending s. 212.098, F.S.;

15         redefining the term "eligible business";

16         defining the term "qualified area"; deleting

17         provisions ranking qualified counties; limiting

18         the amount of tax credits available during any

19         one calendar year; providing for reduction or

20         waiver of certain financial match requirements

21         in rural areas by Rural Economic Development

22         Initiative agencies and organizations; amending

23         s. 220.03, F.S.; redefining the terms "new

24         employee" and "project"; defining the terms

25         "new job has been created" and "jobs"; amending

26         s. 220.181, F.S.; revising the computation

27         procedures of the enterprise-zone job credit

28         against the corporate income tax; amending s.

29         220.183, F.S.; revising the eligibility,

30         application, and administrative requirements of

31         the community contribution corporate income tax


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                                          HB 1225, First Engrossed



  1         credit program; amending s. 288.018, F.S.;

  2         revising administration and uses of the

  3         Regional Rural Development Grants Program;

  4         creating s. 288.019, F.S.; providing for a

  5         review and evaluation process of rural grants

  6         by Rural Economic Development Initiative

  7         agencies; amending s. 288.065, F.S.; expanding

  8         the scope of the Rural Community Revolving Loan

  9         Fund Program; amending s. 288.0656, F.S.;

10         revising the membership of the Rural Economic

11         Development Initiative; requiring an annual

12         designation of staff representatives; amending

13         s. 288.1088, F.S.; expanding eligible uses of

14         the Quick Action Closing Fund; amending s.

15         288.9015, F.S.; revising the duties of

16         Enterprise Florida, Inc.; amending s. 290.004,

17         F.S.; defining the term "rural enterprise

18         zone"; authorizing the Office of Tourism,

19         Trade, and Economic Development to designate an

20         enterprise zone in Sarasota County; providing

21         requirements with respect thereto; amending s.

22         290.00555, F.S.; removing the December 31,

23         1999, deadline for creation of satellite

24         enterprise zones by certain municipalities and

25         authorizing creation of such zones effective

26         retroactively to that date; providing duties of

27         the Office of Tourism, Trade, and Economic

28         Development; providing an application deadline

29         for businesses in such zones eligible for

30         certain sales and use tax incentives; amending

31         s. 290.0065, F.S.; providing for certain rural


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                                          HB 1225, First Engrossed



  1         enterprise zones; conforming agency references

  2         to changes in program administration;

  3         authorizing the Office of Tourism, Trade, and

  4         Economic Development in consultation with

  5         Enterprise Florida, Inc., to develop guidelines

  6         relating to the designation of enterprise

  7         zones; creating s. 290.00676, F.S.; authorizing

  8         the Office of Tourism, Trade, and Economic

  9         Development to amend the boundaries of a rural

10         enterprise zone and providing requirements with

11         respect thereto; creating s. 290.00677, F.S.;

12         modifying the employee residency requirements

13         for the enterprise-zone job credit against the

14         sales tax and corporate income tax if the

15         business is located in a rural enterprise zone;

16         creating s. 290.00694, F.S.; authorizing the

17         Office of Tourism, Trade, and Economic

18         Development to designate rural champion

19         communities as enterprise zones; providing

20         requirements with respect thereto; amending s.

21         290.007, F.S.; revising the list of enterprise

22         zone incentives to reflect the creation of a

23         community contribution sales tax credit

24         program; amending s. 290.048, F.S.; authorizing

25         the Department of Community Affairs to

26         establish advisory committees and solicit

27         participation with respect to administering the

28         Florida Small Cities Community Development

29         Block Grant Program; repealing s. 290.049,

30         F.S., relating to the Community Development

31         Block Grant Advisory Council; repealing s.


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                                          HB 1225, First Engrossed



  1         370.28(4), F.S., which provides conditions for

  2         tax incentives in enterprise zone net-ban

  3         communities; amending s. 380.06, F.S.;

  4         providing for guidelines and standards for an

  5         area designated by the Governor as a rural area

  6         of critical economic concern; deleting a

  7         requirement that the Administration Commission

  8         adopt certain guidelines and standards by rule;

  9         amending s. 420.503, F.S.; redefining the terms

10         "elderly" and "housing for the elderly" under

11         the Florida Housing Finance Act; amending s.

12         420.507, F.S.; authorizing the Florida Housing

13         Finance Corporation to create a recognition

14         program to support affordable housing; amending

15         s. 420.5088, F.S.; revising authority and

16         eligibility criteria for certain loans made by

17         the corporation under the Florida Homeownership

18         Assistance Program; amending s. 420.5092, F.S.;

19         increasing the amount of revenue bonds that may

20         be issued under the Florida Affordable Housing

21         Guarantee Program; amending s. 624.5105, F.S.;

22         conforming definitions; revising eligibility

23         and administrative requirements; amending s.

24         125.0103, F.S.; providing that a local

25         government may enact an ordinance for the

26         purpose of increasing the supply of affordable

27         housing using land use mechanisms; amending s.

28         166.043, F.S.; providing that a local

29         government may enact an ordinance for the

30         purpose of increasing the supply of affordable

31         housing using land use mechanisms; amending s.


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                                          HB 1225, First Engrossed



  1         336.025, F.S.; allowing an additional use for

  2         local option fuel tax proceeds; providing

  3         effective dates.

  4

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

  6

  7         Section 1.  Paragraphs (g) and (h) of subsection (5) of

  8  section 212.08, Florida Statutes, are amended, and paragraph

  9  (q) is added to that subsection, to read:

10         212.08  Sales, rental, use, consumption, distribution,

11  and storage tax; specified exemptions.--The sale at retail,

12  the rental, the use, the consumption, the distribution, and

13  the storage to be used or consumed in this state of the

14  following are hereby specifically exempt from the tax imposed

15  by this chapter.

16         (5)  EXEMPTIONS; ACCOUNT OF USE.--

17         (g)  Building materials used in the rehabilitation of

18  real property located in an enterprise zone.--

19         1.  Beginning July 1, 1995, building materials used in

20  the rehabilitation of real property located in an enterprise

21  zone shall be exempt from the tax imposed by this chapter upon

22  an affirmative showing to the satisfaction of the department

23  that the items have been used for the rehabilitation of real

24  property located in an enterprise zone. Except as provided in

25  subparagraph 2., this exemption inures to the owner, lessee,

26  or lessor of the rehabilitated real property located in an

27  enterprise zone only through a refund of previously paid

28  taxes. To receive a refund pursuant to this paragraph, the

29  owner, lessee, or lessor of the rehabilitated real property

30  located in an enterprise zone must file an application under

31  oath with the governing body or enterprise zone development


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                                          HB 1225, First Engrossed



  1  agency having jurisdiction over the enterprise zone where the

  2  business is located, as applicable, which includes:

  3         a.  The name and address of the person claiming the

  4  refund.

  5         b.  An address and assessment roll parcel number of the

  6  rehabilitated real property in an enterprise zone for which a

  7  refund of previously paid taxes is being sought.

  8         c.  A description of the improvements made to

  9  accomplish the rehabilitation of the real property.

10         d.  A copy of the building permit issued for the

11  rehabilitation of the real property.

12         e.  A sworn statement, under the penalty of perjury,

13  from the general contractor licensed in this state with whom

14  the applicant contracted to make the improvements necessary to

15  accomplish the rehabilitation of the real property, which

16  statement lists the building materials used in the

17  rehabilitation of the real property, the actual cost of the

18  building materials, and the amount of sales tax paid in this

19  state on the building materials. In the event that a general

20  contractor has not been used, the applicant shall provide this

21  information in a sworn statement, under the penalty of

22  perjury. Copies of the invoices which evidence the purchase of

23  the building materials used in such rehabilitation and the

24  payment of sales tax on the building materials shall be

25  attached to the sworn statement provided by the general

26  contractor or by the applicant. Unless the actual cost of

27  building materials used in the rehabilitation of real property

28  and the payment of sales taxes due thereon is documented by a

29  general contractor or by the applicant in this manner, the

30  cost of such building materials shall be an amount equal to 40

31


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                                          HB 1225, First Engrossed



  1  percent of the increase in assessed value for ad valorem tax

  2  purposes.

  3         f.  The identifying number assigned pursuant to s.

  4  290.0065 to the enterprise zone in which the rehabilitated

  5  real property is located.

  6         g.  A certification by the local building code

  7  inspector that the improvements necessary to accomplish the

  8  rehabilitation of the real property are substantially

  9  completed.

10         h.  Whether the business is a small business as defined

11  by s. 288.703(1).

12         i.  If applicable, the name and address of each

13  permanent employee of the business, including, for each

14  employee who is a resident of an enterprise zone, the

15  identifying number assigned pursuant to s. 290.0065 to the

16  enterprise zone in which the employee resides.

17         2.  This exemption inures to a city, county, or other

18  governmental agency, or nonprofit community-based organization

19  through a refund of previously paid taxes if the building

20  materials used in the rehabilitation of real property located

21  in an enterprise zone are paid for from the funds of a

22  community development block grant, State Housing Initiatives

23  Partnership Program, or similar grant or loan program. To

24  receive a refund pursuant to this paragraph, a city, county,

25  or other governmental agency, or nonprofit community-based

26  organization must file an application which includes the same

27  information required to be provided in subparagraph 1. by an

28  owner, lessee, or lessor of rehabilitated real property. In

29  addition, the application must include a sworn statement

30  signed by the chief executive officer of the city, county, or

31  other governmental agency, or nonprofit community-based


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                                          HB 1225, First Engrossed



  1  organization seeking a refund which states that the building

  2  materials for which a refund is sought were paid for from the

  3  funds of a community development block grant, State Housing

  4  Initiatives Partnership Program, or similar grant or loan

  5  program.

  6         3.  Within 10 working days after receipt of an

  7  application, the governing body or enterprise zone development

  8  agency shall review the application to determine if it

  9  contains all the information required pursuant to subparagraph

10  1. or subparagraph 2. and meets the criteria set out in this

11  paragraph. The governing body or agency shall certify all

12  applications that contain the information required pursuant to

13  subparagraph 1. or subparagraph 2. and meet the criteria set

14  out in this paragraph as eligible to receive a refund. If

15  applicable, the governing body or agency shall also certify if

16  20 percent of the employees of the business are residents of

17  an enterprise zone, excluding temporary and part-time

18  employees. The certification shall be in writing, and a copy

19  of the certification shall be transmitted to the executive

20  director of the Department of Revenue. The applicant shall be

21  responsible for forwarding a certified application to the

22  department within the time specified in subparagraph 4.

23         4.  An application for a refund pursuant to this

24  paragraph must be submitted to the department within 6 months

25  after the rehabilitation of the property is deemed to be

26  substantially completed by the local building code inspector

27  or within 90 days after the rehabilitated property is first

28  subject to assessment.

29         5.  The provisions of s. 212.095 do not apply to any

30  refund application made pursuant to this paragraph. No more

31  than one exemption through a refund of previously paid taxes


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                                          HB 1225, First Engrossed



  1  for the rehabilitation of real property shall be permitted for

  2  any one parcel of real property. No refund shall be granted

  3  pursuant to this paragraph unless the amount to be refunded

  4  exceeds $500. No refund granted pursuant to this paragraph

  5  shall exceed the lesser of 97 percent of the Florida sales or

  6  use tax paid on the cost of the building materials used in the

  7  rehabilitation of the real property as determined pursuant to

  8  sub-subparagraph 1.e. or $5,000, or, if no less than 20

  9  percent of the employees of the business are residents of an

10  enterprise zone, excluding temporary and part-time employees,

11  the amount of refund granted pursuant to this paragraph shall

12  not exceed the lesser of 97 percent of the sales tax paid on

13  the cost of such building materials or $10,000. A refund

14  approved pursuant to this paragraph shall be made within 30

15  days of formal approval by the department of the application

16  for the refund.

17         6.  The department shall adopt rules governing the

18  manner and form of refund applications and may establish

19  guidelines as to the requisites for an affirmative showing of

20  qualification for exemption under this paragraph.

21         7.  The department shall deduct an amount equal to 10

22  percent of each refund granted under the provisions of this

23  paragraph from the amount transferred into the Local

24  Government Half-cent Sales Tax Clearing Trust Fund pursuant to

25  s. 212.20 for the county area in which the rehabilitated real

26  property is located and shall transfer that amount to the

27  General Revenue Fund.

28         8.  For the purposes of the exemption provided in this

29  paragraph:

30

31


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                                          HB 1225, First Engrossed



  1         a.  "Building materials" means tangible personal

  2  property which becomes a component part of improvements to

  3  real property.

  4         b.  "Real property" has the same meaning as provided in

  5  s. 192.001(12).

  6         c.  "Rehabilitation of real property" means the

  7  reconstruction, renovation, restoration, rehabilitation,

  8  construction, or expansion of improvements to real property.

  9         d.  "Substantially completed" has the same meaning as

10  provided in s. 192.042(1).

11         9.  The provisions of this paragraph shall expire and

12  be void on December 31, 2005.

13         (h)  Business property used in an enterprise zone.--

14         1.  Beginning July 1, 1995, business property purchased

15  for use by businesses located in an enterprise zone which is

16  subsequently used in an enterprise zone shall be exempt from

17  the tax imposed by this chapter. This exemption inures to the

18  business only through a refund of previously paid taxes. A

19  refund shall be authorized upon an affirmative showing by the

20  taxpayer to the satisfaction of the department that the

21  requirements of this paragraph have been met.

22         2.  To receive a refund, the business must file under

23  oath with the governing body or enterprise zone development

24  agency having jurisdiction over the enterprise zone where the

25  business is located, as applicable, an application which

26  includes:

27         a.  The name and address of the business claiming the

28  refund.

29         b.  The identifying number assigned pursuant to s.

30  290.0065 to the enterprise zone in which the business is

31  located.


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                                          HB 1225, First Engrossed



  1         c.  A specific description of the property for which a

  2  refund is sought, including its serial number or other

  3  permanent identification number.

  4         d.  The location of the property.

  5         e.  The sales invoice or other proof of purchase of the

  6  property, showing the amount of sales tax paid, the date of

  7  purchase, and the name and address of the sales tax dealer

  8  from whom the property was purchased.

  9         f.  Whether the business is a small business as defined

10  by s. 288.703(1).

11         g.  If applicable, the name and address of each

12  permanent employee of the business, including, for each

13  employee who is a resident of an enterprise zone, the

14  identifying number assigned pursuant to s. 290.0065 to the

15  enterprise zone in which the employee resides.

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  2. and meets the criteria set out in this paragraph. The

21  governing body or agency shall certify all applications that

22  contain the information required pursuant to subparagraph 2.

23  and meet the criteria set out in this paragraph as eligible to

24  receive a refund. If applicable, the governing body or agency

25  shall also certify if 20 percent of the employees of the

26  business are residents of an enterprise zone, excluding

27  temporary and part-time employees. The certification shall be

28  in writing, and a copy of the certification shall be

29  transmitted to the executive director of the Department of

30  Revenue. The business shall be responsible for forwarding a

31


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                                          HB 1225, First Engrossed



  1  certified application to the department within the time

  2  specified in subparagraph 4.

  3         4.  An application for a refund pursuant to this

  4  paragraph must be submitted to the department within 6 months

  5  after the tax is due on the business property that is

  6  purchased.

  7         5.  The provisions of s. 212.095 do not apply to any

  8  refund application made pursuant to this paragraph. The amount

  9  refunded on purchases of business property under this

10  paragraph shall be the lesser of 97 percent of the sales tax

11  paid on such business property or $5,000, or, if no less than

12  20 percent of the employees of the business are residents of

13  an enterprise zone, excluding temporary and part-time

14  employees, the amount refunded on purchases of business

15  property under this paragraph shall be the lesser of 97

16  percent of the sales tax paid on such business property or

17  $10,000. A refund approved pursuant to this paragraph shall be

18  made within 30 days of formal approval by the department of

19  the application for the refund. No refund shall be granted

20  under this paragraph unless the amount to be refunded exceeds

21  $100 in sales tax paid on purchases made within a 60-day time

22  period.

23         6.  The department shall adopt rules governing the

24  manner and form of refund applications and may establish

25  guidelines as to the requisites for an affirmative showing of

26  qualification for exemption under this paragraph.

27         7.  If the department determines that the business

28  property is used outside an enterprise zone within 3 years

29  from the date of purchase, the amount of taxes refunded to the

30  business purchasing such business property shall immediately

31  be due and payable to the department by the business, together


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                                          HB 1225, First Engrossed



  1  with the appropriate interest and penalty, computed from the

  2  date of purchase, in the manner provided by this chapter.

  3  Notwithstanding this subparagraph, business property used

  4  exclusively in:

  5         a.  Licensed commercial fishing vessels,

  6         b.  Fishing guide boats, or

  7         c.  Ecotourism guide boats

  8

  9  that leave and return to a fixed location within an area

10  designated under s. 370.28 are eligible for the exemption

11  provided under this paragraph if all requirements of this

12  paragraph are met. Such vessels and boats must be owned by a

13  business that is eligible to receive the exemption provided

14  under this paragraph. This exemption does not apply to the

15  purchase of a vessel or boat.

16         8.  The department shall deduct an amount equal to 10

17  percent of each refund granted under the provisions of this

18  paragraph from the amount transferred into the Local

19  Government Half-cent Sales Tax Clearing Trust Fund pursuant to

20  s. 212.20 for the county area in which the business property

21  is located and shall transfer that amount to the General

22  Revenue Fund.

23         9.  For the purposes of this exemption, "business

24  property" means new or used property defined as "recovery

25  property" in s. 168(c) of the Internal Revenue Code of 1954,

26  as amended, except:

27         a.  Property classified as 3-year property under s.

28  168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;

29         b.  Industrial machinery and equipment as defined in

30  sub-subparagraph (b)6.a. and eligible for exemption under

31  paragraph (b); and


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                                          HB 1225, First Engrossed



  1         c.  Building materials as defined in sub-subparagraph

  2  (g)8.a.; and

  3         d.  Business property having a sales price of under

  4  $5,000 per unit.

  5         10.  The provisions of this paragraph shall expire and

  6  be void on December 31, 2005.

  7         (q)  Community contribution tax credit for donations.--

  8         1.  Authorization.--Beginning July 1, 2001, persons who

  9  are registered with the department under s. 212.18 to collect

10  or remit sales or use tax and who make donations to eligible

11  sponsors are eligible for tax credits against their state

12  sales and use tax liabilities as provided in this paragraph:

13         a.  The credit shall be computed as 50 percent of the

14  person's approved annual community contribution;

15         b.  The credit shall be granted as a refund against

16  state sales and use taxes reported on returns and remitted in

17  the 12 months preceding the date of application to the

18  department for the credit as required in sub-subparagraph 3.c.

19  If the annual credit is not fully used through such refund

20  because of insufficient tax payments during the applicable

21  12-month period, the unused amount may be included in an

22  application for a refund made pursuant to sub-subparagraph

23  3.c. in subsequent years against the total tax payments made

24  for such year. Carryover credits may be applied for a 3-year

25  period without regard to any time limitation that would

26  otherwise apply under s. 215.26;

27         c.  No person shall receive more than $200,000 in

28  annual tax credits for all approved community contributions

29  made in any one year;

30

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                                          HB 1225, First Engrossed



  1         d.  All proposals for the granting of the tax credit

  2  shall require the prior approval of the Office of Tourism,

  3  Trade, and Economic Development;

  4         e.  The total amount of tax credits which may be

  5  granted for all programs approved under this paragraph, s.

  6  220.183, and s. 624.5105 is $10 million annually; and

  7         f.  A person who is eligible to receive the credit

  8  provided for in this paragraph, s. 220.183, or s. 624.5105 may

  9  receive the credit only under the one section of the person's

10  choice.

11         2.  Eligibility requirements.--

12         a.  A community contribution by a person must be in the

13  following form:

14         (I)  Cash or other liquid assets;

15         (II)  Real property;

16         (III)  Goods or inventory; or

17         (IV)  Other physical resources as identified by the

18  Office of Tourism, Trade, and Economic Development.

19         b.  All community contributions must be reserved

20  exclusively for use in a project. As used in this

21  sub-subparagraph, the term "project" means any activity

22  undertaken by an eligible sponsor which is designed to

23  construct, improve, or substantially rehabilitate housing that

24  is affordable to low-income or very-low-income households as

25  defined in s. 420.9071(19) and (28); designed to provide

26  commercial, industrial, or public resources and facilities; or

27  designed to improve entrepreneurial and job-development

28  opportunities for low-income persons. A project may be the

29  investment necessary to increase access to high-speed

30  broadband capability in rural communities with enterprise

31  zones, including projects that result in improvements to


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                                          HB 1225, First Engrossed



  1  communications assets that are owned by a business. A project

  2  may include the provision of museum educational programs and

  3  materials that are directly related to any project approved

  4  between January 1, 1996, and December 31, 1999, and located in

  5  an enterprise zone as referenced in s. 290.00675. This

  6  paragraph does not preclude projects that propose to construct

  7  or rehabilitate housing for low-income or very-low-income

  8  households on scattered sites. The Office of Tourism, Trade,

  9  and Economic Development may reserve up to 50 percent of the

10  available annual tax credits for housing for very-low-income

11  households pursuant to s. 420.9071(28) for the first 6 months

12  of the fiscal year. With respect to housing, contributions may

13  be used to pay the following eligible low-income and

14  very-low-income housing-related activities:

15         (I)  Project development impact and management fees for

16  low-income or very-low-income housing projects;

17         (II)  Down payment and closing costs for eligible

18  persons, as defined in s. 420.9071(19) and (28);

19         (III)  Administrative costs, including housing

20  counseling and marketing fees, not to exceed 10 percent of the

21  community contribution, directly related to low-income or

22  very-low-income projects; and

23         (IV)  Removal of liens recorded against residential

24  property by municipal, county, or special-district local

25  governments when satisfaction of the lien is a necessary

26  precedent to the transfer of the property to an eligible

27  person, as defined in s. 420.9071(19) and (28), for the

28  purpose of promoting home ownership. Contributions for lien

29  removal must be received from a nonrelated third party.

30         c.  The project must be undertaken by an "eligible

31  sponsor," which includes:


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                                          HB 1225, First Engrossed



  1         (I)  A community action program;

  2         (II)  A nonprofit community-based development

  3  organization whose mission is the provision of housing for

  4  low-income or very-low-income households or increasing

  5  entrepreneurial and job-development opportunities for

  6  low-income persons;

  7         (III)  A neighborhood housing services corporation;

  8         (IV)  A local housing authority created under chapter

  9  421;

10         (V)  A community redevelopment agency created under s.

11  163.356;

12         (VI)  The Florida Industrial Development Corporation;

13         (VII)  An historic preservation district agency or

14  organization;

15         (VIII)  A regional workforce board;

16         (IX)  A direct-support organization as provided in s.

17  240.551;

18         (X)  An enterprise zone development agency created

19  under s. 290.0056;

20         (XI)  A community-based organization incorporated under

21  chapter 617 which is recognized as educational, charitable, or

22  scientific pursuant to s. 501(c)(3) of the Internal Revenue

23  Code and whose by-laws and articles of incorporation include

24  affordable housing, economic development, or community

25  development as the primary mission of the corporation;

26         (XII)  Units of local government;

27         (XIII)  Units of state government; or

28         (XIV)  Any other agency that the Office of Tourism,

29  Trade, and Economic Development designates by rule.

30

31


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                                          HB 1225, First Engrossed



  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


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                                          HB 1225, First Engrossed



  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


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                                          HB 1225, First Engrossed



  1  contribution tax credit program to community-based

  2  organizations.

  3         5.  Expiration.--This paragraph expires June 30, 2005;

  4  however, any accrued credit carryover that is unused on that

  5  date may be used until the expiration of the 3-year carryover

  6  period for such credit.

  7         Section 2.  Effective January 1, 2002, section 212.096,

  8  Florida Statutes, is amended to read:

  9         212.096  Sales, rental, storage, use tax; enterprise

10  zone jobs credit against sales tax.--

11         (1)  For the purposes of the credit provided in this

12  section:

13         (a)  "Eligible business" means any sole proprietorship,

14  firm, partnership, corporation, bank, savings association,

15  estate, trust, business trust, receiver, syndicate, or other

16  group or combination, or successor business, located in an

17  enterprise zone. The business must demonstrate to the

18  department that the total number of full-time jobs defined

19  under paragraph (d) has increased from the average of the

20  previous 12 months. The term "eligible business" includes a

21  business that added a minimum of five new full-time jobs in an

22  enterprise zone between July 1, 2000, and December 31, 2001.

23  An eligible business does not include any business which has

24  claimed the credit permitted under s. 220.181 for any new

25  business employee first beginning employment with the business

26  after July 1, 1995.

27         (b)  "Month" means either a calendar month or the time

28  period from any day of any month to the corresponding day of

29  the next succeeding month or, if there is no corresponding day

30  in the next succeeding month, the last day of the succeeding

31  month.


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                                          HB 1225, First Engrossed



  1         (c)  "New employee" means a person residing in an

  2  enterprise zone, a qualified Job Training Partnership Act

  3  classroom training participant, or a participant in the

  4  welfare transition program participant who begins employment

  5  with an eligible business after July 1, 1995, and who has not

  6  been previously employed full-time within the preceding 12

  7  months by the eligible business, or a successor eligible

  8  business, claiming the credit allowed by this section.

  9         (d)  "Jobs" means full-time positions, as consistent

10  with terms used by the Agency for Workforce Innovation and the

11  United States Department of Labor for purposes of unemployment

12  compensation tax administration and employment estimation

13  resulting directly from a business operation in this state.

14  This number may not include temporary construction jobs

15  involved with the construction of facilities or any jobs that

16  have previously been included in any application for tax

17  credits under s. 220.181(1). The term "jobs" also includes

18  employment of an employee leased from an employee leasing

19  company licensed under chapter 468 if such employee has been

20  continuously leased to the employer for an average of at least

21  36 hours per week for more than 6 months.

22         (e)  "New job has been created" means that the total

23  number of full-time jobs has increased in an enterprise zone

24  from the average of the previous 12 months, as demonstrated to

25  the department by a business located in the enterprise zone.

26

27  A person shall be deemed to be employed if the person performs

28  duties in connection with the operations of the business on a

29  regular, full-time basis, provided the person is performing

30  such duties for an average of at least 36 hours per week each

31  month, or a part-time basis, provided the person is performing


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                                          HB 1225, First Engrossed



  1  such duties for an average of at least 20 hours per week each

  2  month throughout the year. The person must be performing such

  3  duties at a business site located in the enterprise zone.

  4         (2)(a)  It is the legislative intent to encourage the

  5  provision of meaningful employment opportunities which will

  6  improve the quality of life of those employed and to encourage

  7  economic expansion of enterprise zones and the state.

  8  Therefore, beginning January July 1, 2002 1995, upon an

  9  affirmative showing by an eligible a business to the

10  satisfaction of the department that the requirements of this

11  section have been met, the business shall be allowed a credit

12  against the tax remitted under this chapter.

13         (b)  The credit shall be computed as 20 follows:

14         1.  Ten percent of the actual monthly wages paid in

15  this state to each new employee hired when a new job has been

16  created, unless the business is located within a rural

17  enterprise zone pursuant to s. 290.004(8), in which case the

18  credit shall be 30 percent of the actual monthly wages paid

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 computed as 30 15 percent of the actual

23  monthly wages paid in this state to each new employee hired

24  when a new job has been created, unless the business is

25  located within a rural enterprise zone, in which case the

26  credit shall be 45 percent of the actual monthly wages paid.

27  If the new employee hired when a new job is created is a

28  participant in the welfare transition program, the following

29  credit shall be a percent of the actual monthly wages paid: 40

30  percent for $4 above the hourly federal minimum wage rate; 41

31  percent for $5 above the hourly federal minimum wage rate; 42


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                                          HB 1225, First Engrossed



  1  percent for $6 above the hourly federal minimum wage rate; 43

  2  percent for $7 above the hourly federal minimum wage rate; and

  3  44 percent for $8 above the hourly federal minimum wage rate.

  4  ;

  5         2.  Five percent of the first $1,500 of actual monthly

  6  wages paid in this state for each new employee whose wages

  7  exceed $1,500 a month; or

  8         3.  Fifteen percent of the first $1,500 of actual

  9  monthly wages paid in this state for each new employee who is

10  a WAGES Program participant pursuant to chapter 414.

11

12  For purposes of this paragraph, monthly wages shall be

13  computed as one-twelfth of the expected annual wages paid to

14  such employee. The amount paid as wages to a new employee is

15  the compensation paid to such employee that is subject to

16  unemployment tax. The credit shall be allowed for up to 24 12

17  consecutive months, beginning with the first tax return due

18  pursuant to s. 212.11 after approval by the department.

19         (3)  In order to claim this credit, an eligible

20  business must file under oath with the governing body or

21  enterprise zone development agency having jurisdiction over

22  the enterprise zone where the business is located, as

23  applicable, a statement which includes:

24         (a)  For each new employee for whom this credit is

25  claimed, the employee's name and place of residence, including

26  the identifying number assigned pursuant to s. 290.0065 to the

27  enterprise zone in which the employee resides if the new

28  employee is a person residing in an enterprise zone, and, if

29  applicable, documentation that the employee is a qualified Job

30  Training Partnership Act classroom training participant or a

31  welfare transition program participant.


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                                          HB 1225, First Engrossed



  1         (b)  If applicable, the name and address of each

  2  permanent employee of the business, including, for each

  3  employee who is a resident of an enterprise zone, the

  4  identifying number assigned pursuant to s. 290.0065 to the

  5  enterprise zone in which the employee resides.

  6         (c)  The name and address of the eligible business.

  7         (d)  The starting salary or hourly wages paid to the

  8  new employee.

  9         (e)  Demonstration to the department that the total

10  number of full-time jobs defined under paragraph (1)(d) has

11  increased in an enterprise zone from the average of the

12  previous 12 months.

13         (f)(e)  The identifying number assigned pursuant to s.

14  290.0065 to the enterprise zone in which the business is

15  located.

16         (g)(f)  Whether the business is a small business as

17  defined by s. 288.703(1).

18         (h)(g)  Within 10 working days after receipt of an

19  application, the governing body or enterprise zone development

20  agency shall review the application to determine if it

21  contains all the information required pursuant to this

22  subsection and meets the criteria set out in this section. The

23  governing body or agency shall certify all applications that

24  contain the information required pursuant to this subsection

25  and meet the criteria set out in this section as eligible to

26  receive a credit. If applicable, the governing body or agency

27  shall also certify if 20 percent of the employees of the

28  business are residents of an enterprise zone, excluding

29  temporary and part-time employees. The certification shall be

30  in writing, and a copy of the certification shall be

31  transmitted to the executive director of the Department of


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                                          HB 1225, First Engrossed



  1  Revenue. The business shall be responsible for forwarding a

  2  certified application to the department within the time

  3  specified in paragraph (i) (h).

  4         (i)(h)  All applications for a credit pursuant to this

  5  section must be submitted to the department within 6 4 months

  6  after the new employee is hired.

  7         (4)  Within 10 working days after receipt of a

  8  completed application for a credit authorized in this section,

  9  the department shall inform the business that the application

10  has been approved. The credit may be taken on the first return

11  due after receipt of approval from the department.

12         (5)(4)  In the event the application is incomplete or

13  insufficient to support the credit authorized in this section,

14  the department shall deny the credit and notify the business

15  of that fact. The business may reapply for this credit.

16         (6)(5)  The credit provided in this section does not

17  apply:

18         (a)  For any new employee who is an owner, partner, or

19  stockholder of an eligible business.

20         (b)  For any new employee who is employed for any

21  period less than 3 full calendar months.

22         (7)(6)  The credit provided in this section shall not

23  be allowed for any month in which the tax due for such period

24  or the tax return required pursuant to s. 212.11 for such

25  period is delinquent.

26         (8)(7)  In the event an eligible business has a credit

27  larger than the amount owed the state on the tax return for

28  the time period in which the credit is claimed, the amount of

29  the credit for that time period shall be the amount owed the

30  state on that tax return.

31


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                                          HB 1225, First Engrossed



  1         (9)(8)  Any business which has claimed this credit

  2  shall not be allowed any credit under the provisions of s.

  3  220.181 for any new employee beginning employment after July

  4  1, 1995.

  5         (10)(9)  It shall be the responsibility of each

  6  business to affirmatively demonstrate to the satisfaction of

  7  the department that it meets the requirements of this section.

  8         (11)(10)  Any person who fraudulently claims this

  9  credit is liable for repayment of the credit plus a mandatory

10  penalty of 100 percent of the credit plus interest at the rate

11  provided in this chapter, and such person is guilty of a

12  misdemeanor of the second degree, punishable as provided in s.

13  775.082 or s. 775.083.

14         (12)(11)  The provisions of this section, except for

15  subsection (11) (10), shall expire and be void on December 31,

16  2005.

17         Section 3.  Effective January 1, 2002, section 212.098,

18  Florida Statutes, is amended to read:

19         212.098  Rural Job Tax Credit Program.--

20         (1)  As used in this section, the term:

21         (a)  "Eligible business" means any sole proprietorship,

22  firm, partnership, or corporation that is located in a

23  qualified county and is predominantly engaged in, or is

24  headquarters for a business predominantly engaged in,

25  activities usually provided for consideration by firms

26  classified within the following standard industrial

27  classifications:  SIC 01-SIC 09 (agriculture, forestry, and

28  fishing); SIC 20-SIC 39 (manufacturing); SIC 422 (public

29  warehousing and storage); SIC 70 (hotels and other lodging

30  places); SIC 7391 (research and development); SIC 7992 (public

31  golf courses); and SIC 7996 (amusement parks); and a targeted


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                                          HB 1225, First Engrossed



  1  industry eligible for the qualified target industry business

  2  tax refund under s. 288.106. A call center or similar customer

  3  service operation that services a multistate market or an

  4  international market is also an eligible business. In

  5  addition, the Office of Tourism, Trade, and Economic

  6  Development may, as part of its final budget request submitted

  7  pursuant to s. 216.023, recommend additions to or deletions

  8  from the list of standard industrial classifications used to

  9  determine an eligible business, and the Legislature may

10  implement such recommendations. Excluded from eligible

11  receipts are receipts from retail sales, except such receipts

12  for hotels and other lodging places classified in SIC 70,

13  public golf courses in SIC 7992, and amusement parks in SIC

14  7996.  For purposes of this paragraph, the term

15  "predominantly" means that more than 50 percent of the

16  business's gross receipts from all sources is generated by

17  those activities usually provided for consideration by firms

18  in the specified standard industrial classification. The

19  determination of whether the business is located in a

20  qualified county and the tier ranking of that county must be

21  based on the date of application for the credit under this

22  section. Commonly owned and controlled entities are to be

23  considered a single business entity.

24         (b)  "Qualified employee" means any employee of an

25  eligible business who performs duties in connection with the

26  operations of the business on a regular, full-time basis for

27  an average of at least 36 hours per week for at least 3 months

28  within the qualified county in which the eligible business is

29  located. The term also includes an employee leased from an

30  employee leasing company licensed under chapter 468, if such

31  employee has been continuously leased to the employer for an


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                                          HB 1225, First Engrossed



  1  average of at least 36 hours per week for more than 6 months.

  2  An owner or partner of the eligible business is not a

  3  qualified employee.

  4         (c)  "Qualified area county" means any area that is

  5  contained within a rural area of critical economic concern

  6  designated under s. 288.0656, a county that has a population

  7  of fewer than 75,000 persons, or any county that has a

  8  population of 100,000 or less and is contiguous to a county

  9  that has a population of less than 75,000, selected in the

10  following manner:  every third year, the Office of Tourism,

11  Trade, and Economic Development shall rank and tier the

12  state's counties according to the following four factors:

13         1.  Highest unemployment rate for the most recent

14  36-month period.

15         2.  Lowest per capita income for the most recent

16  36-month period.

17         3.  Highest percentage of residents whose incomes are

18  below the poverty level, based upon the most recent data

19  available.

20         4.  Average weekly manufacturing wage, based upon the

21  most recent data available.

22

23  Tier-one qualified counties are those ranked 1-5 and represent

24  the state's least-developed counties according to this

25  ranking. Tier-two qualified counties are those ranked 6-10,

26  and tier-three counties are those ranked 11-17.

27  Notwithstanding this definition, "qualified county" also means

28  a county that contains an area that has been designated as a

29  federal Enterprise Community pursuant to the 1999 Agricultural

30  Appropriations Act. Such a designated area shall be ranked in

31


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                                          HB 1225, First Engrossed



  1  tier three until the areas are reevaluated by the Office of

  2  Tourism, Trade, and Economic Development.

  3         (d)  "New business" means any eligible business first

  4  beginning operation on a site in a qualified county and

  5  clearly separate from any other commercial or business

  6  operation of the business entity within a qualified county. A

  7  business entity that operated an eligible business within a

  8  qualified county within the 48 months before the period

  9  provided for application by subsection (2) is not considered a

10  new business.

11         (e)  "Existing business" means any eligible business

12  that does not meet the criteria for a new business.

13         (2)  A new eligible business may apply for a tax credit

14  under this subsection once at any time during its first year

15  of operation. A new eligible business in a tier-one qualified

16  area that county which has at least 10 qualified employees on

17  the date of application shall receive a $1,000 $1,500 tax

18  credit for each such employee. A new eligible business in a

19  tier-two qualified county which has at least 20 qualified

20  employees on the date of application shall receive a $1,000

21  tax credit for each such employee. A new eligible business in

22  a tier-three qualified county which has at least 30 qualified

23  employees on the date of application shall receive a $500 tax

24  credit for each such employee.

25         (3)  An existing eligible business may apply for a tax

26  credit under this subsection at any time it is entitled to

27  such credit, except as restricted by this subsection. An

28  existing eligible business with fewer than 50 employees in a

29  tier-one qualified area that county which on the date of

30  application has at least 20 percent 5 more qualified employees

31  than it had 1 year prior to its date of application shall


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                                          HB 1225, First Engrossed



  1  receive a $1,000 $1,500 tax credit for each such additional

  2  employee. An existing eligible business that has 50 employees

  3  or more in a qualified area that, on the date of application,

  4  has at least 10 more qualified employees than it had 1 year

  5  prior to its date of application shall receive a $1,000 tax

  6  credit for each additional employee. in a tier-two qualified

  7  county which on the date of application has at least 10 more

  8  qualified employees than it had 1 year prior to its date of

  9  application shall receive a $1,000 credit for each such

10  additional employee. An existing business in a tier-three

11  qualified county which on the date of application has at least

12  15 more qualified employees than it had 1 year prior to its

13  date of application shall receive a $500 tax credit for each

14  such additional employee. An existing business may apply for

15  the credit under this subsection no more than once in any

16  12-month period. Any existing eligible business that received

17  a credit under subsection (2) may not apply for the credit

18  under this subsection sooner than 12 months after the

19  application date for the credit under subsection (2).

20         (4)  For any new eligible business receiving a credit

21  pursuant to subsection (2), an additional $500 credit shall be

22  provided for any qualified employee who is a welfare

23  transition program participant. For any existing eligible

24  business receiving a credit pursuant to subsection (3), an

25  additional $500 credit shall be provided for any qualified

26  employee who is a welfare transition program participant. Such

27  employee must be employed on the application date and have

28  been employed less than 1 year. This credit shall be in

29  addition to other credits pursuant to this section regardless

30  of the tier-level of the county. Appropriate documentation

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                                          HB 1225, First Engrossed



  1  concerning the eligibility of an employee for this credit must

  2  be submitted as determined by the department.

  3         (5)  To be eligible for a tax credit under subsection

  4  (3), the number of qualified employees employed 1 year prior

  5  to the application date must be no lower than the number of

  6  qualified employees on the application date on which a credit

  7  under this section was based for any previous application,

  8  including an application under subsection (2).

  9         (6)(a)  In order to claim this credit, an eligible

10  business must file under oath with the Office of Tourism,

11  Trade, and Economic Development a statement that includes the

12  name and address of the eligible business, the starting salary

13  or hourly wages paid to the new employee, and any other

14  information that the Department of Revenue requires.

15         (b)  Within 30 working days after receipt of an

16  application for credit, the Office of Tourism, Trade, and

17  Economic Development shall review the application to determine

18  whether it contains all the information required by this

19  subsection and meets the criteria set out in this section.

20  Subject to the provisions of paragraph (c), the Office of

21  Tourism, Trade, and Economic Development shall approve all

22  applications that contain the information required by this

23  subsection and meet the criteria set out in this section as

24  eligible to receive a credit.

25         (c)  The maximum credit amount that may be approved

26  during any calendar year is $5 million. The Department of

27  Revenue, in conjunction with the Office of Tourism, Trade, and

28  Economic Development, shall notify the governing bodies in

29  areas designated as qualified counties when the $5 million

30  maximum amount has been reached. Applications must be

31  considered for approval in the order in which they are


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                                          HB 1225, First Engrossed



  1  received without regard to whether the credit is for a new or

  2  existing business.  This limitation applies to the value of

  3  the credit as contained in approved applications. Approved

  4  credits may be taken in the time and manner allowed pursuant

  5  to this section.

  6         (d)  A business may not receive more than $500,000 of

  7  tax credits during any one calendar year for its efforts in

  8  creating jobs.

  9         (7)  If the application is insufficient to support the

10  credit authorized in this section, the Office of Tourism,

11  Trade, and Economic Development shall deny the credit and

12  notify the business of that fact.  The business may reapply

13  for this credit within 3 months after such notification.

14         (8)  If the credit under this section is greater than

15  can be taken on a single tax return, excess amounts may be

16  taken as credits on any tax return submitted within 12 months

17  after the approval of the application by the department.

18         (9)  It is the responsibility of each business to

19  affirmatively demonstrate to the satisfaction of the

20  Department of Revenue that it meets the requirements of this

21  section.

22         (10)  Any person who fraudulently claims this credit is

23  liable for repayment of the credit plus a mandatory penalty of

24  100 percent of the credit and is guilty of a misdemeanor of

25  the second degree, punishable as provided in s. 775.082 or s.

26  775.083.

27         (11)  A corporation may take the credit under this

28  section against its corporate income tax liability, as

29  provided in s. 220.1895. However, a corporation that uses its

30  job tax credit against the tax imposed by chapter 220 may not

31


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                                          HB 1225, First Engrossed



  1  receive the credit provided for in this section. A credit may

  2  be taken against only one tax.

  3         (12)  The department shall adopt rules governing the

  4  manner and form of applications for credit and may establish

  5  guidelines as to the requisites for an affirmative showing of

  6  qualification for the credit under this section.

  7         Section 4.  Reduction or waiver of financial match

  8  requirements.--Notwithstanding any other law, the member

  9  agencies and organizations of the Rural Economic Development

10  Initiative (REDI), as defined in section 288.0656(6)(a),

11  Florida Statutes, shall review the financial match

12  requirements for projects in rural areas as defined in section

13  288.0656(2)(b), Florida Statutes.

14         (1)  Each agency and organization shall develop a

15  proposal to waive or reduce the match requirement for rural

16  areas.

17         (2)  Agencies and organizations shall ensure that all

18  proposals are submitted to the Office of Tourism, Trade, and

19  Economic Development for review by the REDI agencies.

20         (3)  These proposals shall be delivered to the Office

21  of Tourism, Trade, and Economic Development for distribution

22  to the REDI agencies and organizations. A meeting of REDI

23  agencies and organizations must be called within 30 days after

24  receipt of such proposals for REDI comment and recommendations

25  on each proposal.

26         (4)  Waivers and reductions must be requested by the

27  county or community, and such county or community must have

28  three or more of the factors identified in section

29  288.0656(2)(a), Florida Statutes.

30         (5)  Any other funds available to the project may be

31  used for financial match of federal programs when there is


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                                          HB 1225, First Engrossed



  1  fiscal hardship and the match requirements may not be waived

  2  or reduced.

  3         (6)  When match requirements are not reduced or

  4  eliminated, donations of land, though usually not recognized

  5  as an in-kind match, may be permitted.

  6         (7)  To the fullest extent possible, agencies and

  7  organizations shall expedite the rule adoption and amendment

  8  process if necessary to incorporate the reduction in match by

  9  rural areas in fiscal distress.

10         (8)  REDI shall include in its annual report an

11  evaluation on the status of changes to rules, number of awards

12  made with waivers, and recommendations for future changes.

13         Section 5.  Subsection (1) of section 220.03, Florida

14  Statutes, is amended to read:

15         220.03  Definitions.--

16         (1)  SPECIFIC TERMS.--When used in this code, and when

17  not otherwise distinctly expressed or manifestly incompatible

18  with the intent thereof, the following terms shall have the

19  following meanings:

20         (a)  "Ad valorem taxes paid" means 96 percent of

21  property taxes levied for operating purposes and does not

22  include interest, penalties, or discounts foregone. In

23  addition, the term "ad valorem taxes paid," for purposes of

24  the credit in s. 220.182, means the ad valorem tax paid on new

25  or additional real or personal property acquired to establish

26  a new business or facilitate a business expansion, including

27  pollution and waste control facilities, or any part thereof,

28  and including one or more buildings or other structures,

29  machinery, fixtures, and equipment. The provisions of this

30  paragraph shall expire and be void on June 30, 2005.

31


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                                          HB 1225, First Engrossed



  1         (b)  "Affiliated group of corporations" means two or

  2  more corporations which constitute an affiliated group of

  3  corporations as defined in s. 1504(a) of the Internal Revenue

  4  Code.

  5         (c)  "Business" or "business firm" means any business

  6  entity authorized to do business in this state as defined in

  7  paragraph (e), and any bank or savings and loan association as

  8  defined in s. 220.62, subject to the tax imposed by the

  9  provisions of this chapter. The provisions of this paragraph

10  shall expire and be void on June 30, 2005.

11         (d)  "Community contribution" means the grant by a

12  business firm of any of the following items:

13         1.  Cash or other liquid assets.

14         2.  Real property.

15         3.  Goods or inventory.

16         4.  Other physical resources as identified by the

17  department.

18

19  The provisions of this paragraph shall expire and be void on

20  June 30, 2005.

21         (e)  "Corporation" includes all domestic corporations;

22  foreign corporations qualified to do business in this state or

23  actually doing business in this state; joint-stock companies;

24  limited liability companies, under chapter 608; common-law

25  declarations of trust, under chapter 609; corporations not for

26  profit, under chapter 617; agricultural cooperative marketing

27  associations, under chapter 618; professional service

28  corporations, under chapter 621; foreign unincorporated

29  associations, under chapter 622; private school corporations,

30  under chapter 623; foreign corporations not for profit which

31  are carrying on their activities in this state; and all other


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                                          HB 1225, First Engrossed



  1  organizations, associations, legal entities, and artificial

  2  persons which are created by or pursuant to the statutes of

  3  this state, the United States, or any other state, territory,

  4  possession, or jurisdiction. The term "corporation" does not

  5  include proprietorships, even if using a fictitious name;

  6  partnerships of any type, as such; limited liability companies

  7  that are taxable as partnerships for federal income tax

  8  purposes; state or public fairs or expositions, under chapter

  9  616; estates of decedents or incompetents; testamentary

10  trusts; or private trusts.

11         (f)  "Department" means the Department of Revenue of

12  this state.

13         (g)  "Director" means the executive director of the

14  Department of Revenue and, when there has been an appropriate

15  delegation of authority, the executive director's delegate.

16         (h)  "Earned," "accrued," "paid," or "incurred" shall

17  be construed according to the method of accounting upon the

18  basis of which a taxpayer's income is computed under this

19  code.

20         (i)  "Emergency," as used in s. 220.02 and in paragraph

21  (u) of this subsection, means occurrence of widespread or

22  severe damage, injury, or loss of life or property proclaimed

23  pursuant to s. 14.022 or declared pursuant to s. 252.36. The

24  provisions of this paragraph shall expire and be void on June

25  30, 2005.

26         (j)  "Enterprise zone" means an area in the state

27  designated pursuant to s. 290.0065. The provisions of this

28  paragraph shall expire and be void on June 30, 2005.

29         (k)  "Expansion of an existing business," for the

30  purposes of the enterprise zone property tax credit, means any

31  business entity authorized to do business in this state as


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                                          HB 1225, First Engrossed



  1  defined in paragraph (e), and any bank or savings and loan

  2  association as defined in s. 220.62, subject to the tax

  3  imposed by the provisions of this chapter, located in an

  4  enterprise zone, which expands by or through additions to real

  5  and personal property and which establishes five or more new

  6  jobs to employ five or more additional full-time employees at

  7  such location. The provisions of this paragraph shall expire

  8  and be void on June 30, 2005.

  9         (l)  "Fiscal year" means an accounting period of 12

10  months or less ending on the last day of any month other than

11  December or, in the case of a taxpayer with an annual

12  accounting period of 52-53 weeks under s. 441(f) of the

13  Internal Revenue Code, the period determined under that

14  subsection.

15         (m)  "Includes" or "including," when used in a

16  definition contained in this code, shall not be deemed to

17  exclude other things otherwise within the meaning of the term

18  defined.

19         (n)  "Internal Revenue Code" means the United States

20  Internal Revenue Code of 1986, as amended and in effect on

21  January 1, 2000, except as provided in subsection (3).

22         (o)  "Local government" means any county or

23  incorporated municipality in the state. The provisions of this

24  paragraph shall expire and be void on June 30, 2005.

25         (p)  "New business," for the purposes of the enterprise

26  zone property tax credit, means any business entity authorized

27  to do business in this state as defined in paragraph (e), or

28  any bank or savings and loan association as defined in s.

29  220.62, subject to the tax imposed by the provisions of this

30  chapter, first beginning operations on a site located in an

31  enterprise zone and clearly separate from any other commercial


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                                          HB 1225, First Engrossed



  1  or industrial operations owned by the same entity, bank, or

  2  savings and loan association and which establishes five or

  3  more new jobs to employ five or more additional full-time

  4  employees at such location. The provisions of this paragraph

  5  shall expire and be void on June 30, 2005.

  6         (q)  "New employee," for the purposes of the enterprise

  7  zone jobs credit, means a person residing in an enterprise

  8  zone, a qualified Job Training Partnership Act classroom

  9  training participant, or a WAGES Program participant in the

10  welfare transition program who is employed at a business

11  located in an enterprise zone who begins employment in the

12  operations of the business after July 1, 1995, and who has not

13  been previously employed full-time within the preceding 12

14  months by the business or a successor business claiming the

15  credit pursuant to s. 220.181. A person shall be deemed to be

16  employed by such a business if the person performs duties in

17  connection with the operations of the business on a full-time

18  basis, provided she or he is performing such duties for an

19  average of at least 36 hours per week each month, or a

20  part-time basis, provided she or he is performing such duties

21  for  an average of at least 20 hours per week each month

22  throughout the year. The term "jobs" also includes employment

23  of an employee leased from an employee leasing company

24  licensed under chapter 468, if such employee has been

25  continuously leased to the employer for an average of at least

26  36 hours per week for more than 6 months. 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         (r)  "Nonbusiness income" means rents and royalties

31  from real or tangible personal property, capital gains,


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                                          HB 1225, First Engrossed



  1  interest, dividends, and patent and copyright royalties, to

  2  the extent that they do not arise from transactions and

  3  activities in the regular course of the taxpayer's trade or

  4  business.  The term "nonbusiness income" does not include

  5  income from tangible and intangible property if the

  6  acquisition, management, and disposition of the property

  7  constitute integral parts of the taxpayer's regular trade or

  8  business operations, or any amounts which could be included in

  9  apportionable income without violating the due process clause

10  of the United States Constitution. For purposes of this

11  definition, "income" means gross receipts less all expenses

12  directly or indirectly attributable thereto.  Functionally

13  related dividends are presumed to be business income.

14         (s)  "Partnership" includes a syndicate, group, pool,

15  joint venture, or other unincorporated organization through or

16  by means of which any business, financial operation, or

17  venture is carried on, including a limited partnership; and

18  the term "partner" includes a member having a capital or a

19  profits interest in a partnership.

20         (t)  "Project" means any activity undertaken by an

21  eligible sponsor, as defined in s. 220.183(2)(c), which is

22  designed to construct, improve, or substantially rehabilitate

23  housing that is affordable to low-income or very-low-income

24  households as defined in s. 420.9071(19) and (28); designed to

25  provide commercial, industrial, or public resources and

26  facilities; or designed to improve entrepreneurial and

27  job-development opportunities for low-income persons. A

28  project may be the investment necessary to increase access to

29  high-speed broadband capability in rural communities with

30  enterprise zones, including projects that result in

31  improvements to communications assets that are owned by a


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                                          HB 1225, First Engrossed



  1  business. A project may include the provision of museum

  2  educational programs and materials that are directly related

  3  to any project approved between January 1, 1996, and December

  4  31, 1999, and located in an enterprise zone as referenced in

  5  s. 290.00675. This paragraph does not preclude projects that

  6  propose to construct or rehabilitate low-income or

  7  very-low-income housing on scattered sites. The Office of

  8  Tourism, Trade, and Economic Development may reserve up to 50

  9  percent of the available annual tax credits under s. 220.181

10  for housing for very-low-income households pursuant to s.

11  420.9071(28) for the first 6 months of the fiscal year. With

12  respect to housing, contributions may be used to pay the

13  following eligible project-related activities:

14         1.  Project development, impact, and management fees

15  for low-income or very-low-income housing projects;

16         2.  Down payment and closing costs for eligible

17  persons, as defined in s. 420.9071(19) and (28);

18         3.  Administrative costs, including housing counseling

19  and marketing fees, not to exceed 10 percent of the community

20  contribution, directly related to low-income or

21  very-low-income projects; and

22         4.  Removal of liens recorded against residential

23  property by municipal, county, or special-district local

24  governments when satisfaction of the lien is a necessary

25  precedent to the transfer of the property to an eligible

26  person, as defined in s. 420.9071(19) and (28), for the

27  purpose of promoting home ownership. Contributions for lien

28  removal must be received from a nonrelated third party.

29  "Project" means any activity undertaken by an eligible

30  sponsor, as defined in s. 220.183(2)(c), which is designed to

31  construct, improve, or substantially rehabilitate housing or


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                                          HB 1225, First Engrossed



  1  commercial, industrial, or public resources and facilities or

  2  to improve entrepreneurial and job-development opportunities

  3  for low-income persons.

  4

  5  The provisions of this paragraph shall expire and be void on

  6  June 30, 2005.

  7         (u)  "Rebuilding of an existing business" means

  8  replacement or restoration of real or tangible property

  9  destroyed or damaged in an emergency, as defined in paragraph

10  (i), after July 1, 1995, in an enterprise zone, by a business

11  entity authorized to do business in this state as defined in

12  paragraph (e), or a bank or savings and loan association as

13  defined in s. 220.62, subject to the tax imposed by the

14  provisions of this chapter, located in the enterprise zone.

15  The provisions of this paragraph shall expire and be void on

16  June 30, 2005.

17         (v)  "Regulations" includes rules promulgated, and

18  forms prescribed, by the department.

19         (w)  "Returns" includes declarations of estimated tax

20  required under this code.

21         (x)  "Secretary" means the secretary of the Department

22  of Commerce. The provisions of this paragraph shall expire and

23  be void on June 30, 2005.

24         (y)  "State," when applied to a jurisdiction other than

25  Florida, means any state of the United States, the District of

26  Columbia, the Commonwealth of Puerto Rico, any territory or

27  possession of the United States, and any foreign country, or

28  any political subdivision of any of the foregoing.

29         (z)  "Taxable year" means the calendar or fiscal year

30  upon the basis of which net income is computed under this

31


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                                          HB 1225, First Engrossed



  1  code, including, in the case of a return made for a fractional

  2  part of a year, the period for which such return is made.

  3         (aa)  "Taxpayer" means any corporation subject to the

  4  tax imposed by this code, and includes all corporations for

  5  which a consolidated return is filed under s. 220.131.

  6  However, "taxpayer" does not include a corporation having no

  7  individuals (including individuals employed by an affiliate)

  8  receiving compensation in this state as defined in s. 220.15

  9  when the only property owned or leased by said corporation

10  (including an affiliate) in this state is located at the

11  premises of a printer with which it has contracted for

12  printing, if such property consists of the final printed

13  product, property which becomes a part of the final printed

14  product, or property from which the printed product is

15  produced.

16         (bb)  "Functionally related dividends" include the

17  following types of dividends:

18         1.  Those received from a subsidiary of which the

19  voting stock is more than 50 percent owned or controlled by

20  the taxpayer or members of its affiliated group and which is

21  engaged in the same general line of business.

22         2.  Those received from any corporation which is either

23  a significant source of supply for the taxpayer or its

24  affiliated group or a significant purchaser of the output of

25  the taxpayer or its affiliated group, or which sells a

26  significant part of its output or obtains a significant part

27  of its raw materials or input from the taxpayer or its

28  affiliated group. "Significant" means an amount of 15 percent

29  or more.

30

31


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                                          HB 1225, First Engrossed



  1         3.  Those resulting from the investment of working

  2  capital or some other purpose in furtherance of the taxpayer

  3  or its affiliated group.

  4

  5  However, dividends not otherwise subject to tax under this

  6  chapter are excluded.

  7         (cc)  "Child care facility startup costs" means

  8  expenditures for substantial renovation, equipment, including

  9  playground equipment and kitchen appliances and cooking

10  equipment, real property, including land and improvements, and

11  for reduction of debt, made in connection with a child care

12  facility as defined by s. 402.302, or any facility providing

13  daily care to children who are mildly ill, which is located in

14  this state on the taxpayer's premises and used by the

15  employees of the taxpayer.

16         (dd)  "Operation of a child care facility" means

17  operation of a child care facility as defined by s. 402.302,

18  or any facility providing daily care to children who are

19  mildly ill, which is located in this state within 5 miles of

20  at least one place of business of the taxpayer and which is

21  used by the employees of the taxpayer.

22         (ee)  "Citrus processing company" means a corporation

23  which, during the 60-month period ending on December 31, 1997,

24  had derived more than 50 percent of its total gross receipts

25  from the processing of citrus products and the manufacture of

26  juices.

27         (ff)  "New job has been created" means that the total

28  number of full-time jobs has increased in an enterprise zone

29  from the average of the previous 12 months, as demonstrated to

30  the department by a business located in the enterprise zone.

31


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                                          HB 1225, First Engrossed



  1         (gg)  "Jobs" means full-time positions, as consistent

  2  with terms used by the Agency for Workforce Innovation and the

  3  United States Department of Labor for purposes of unemployment

  4  compensation tax administration and employment estimation

  5  resulting directly from business operations in this state.

  6  This number may not include temporary construction jobs

  7  involved with the construction of facilities or any jobs that

  8  have previously been included in any application for tax

  9  credits under s. 220.181(1).

10         Section 6.  Effective January 1, 2002, subsections (1)

11  and (2) of section 220.181, Florida Statutes, are amended to

12  read:

13         220.181  Enterprise zone jobs credit.--

14         (1)(a)  Beginning January July 1, 2002 1995, there

15  shall be allowed a credit against the tax imposed by this

16  chapter to any business located in an enterprise zone which

17  demonstrates to the department that the total number of

18  full-time jobs has increased from the average of the previous

19  12 months. This credit is also available for a business that

20  added a minimum of five new full-time jobs in an enterprise

21  zone between July 1, 2000, and December 31, 2001 employs one

22  or more new employees. The credit shall be computed as 20

23  follows:

24         1.  Ten percent of the actual monthly wages paid in

25  this state to each new employee hired when a new job has been

26  created, as defined under s. 220.03(1)(ff), unless the

27  business is located in a rural enterprise zone, pursuant to s.

28  290.004(8), in which case the credit shall be 30 percent of

29  the actual monthly wages paid whose wages do not exceed $1,500

30  a month. If no less than 20 percent of the employees of the

31  business are residents of an enterprise zone, excluding


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                                          HB 1225, First Engrossed



  1  temporary and part-time employees, the credit shall be

  2  computed as 30 15 percent of the actual monthly wages paid in

  3  this state to each new employee hired when a new job has been

  4  created, unless the business is located in a rural enterprise

  5  zone, in which case the credit shall be 45 percent of the

  6  actual monthly wages paid, for a period of up to 24 12

  7  consecutive months. If the new employee hired when a new job

  8  is created is a participant in the welfare transition program,

  9  the following credit shall be a percent of the actual monthly

10  wages paid: 40 percent for $4 above the hourly federal minimum

11  wage rate; 41 percent for $5 above the hourly federal minimum

12  wage rate; 42 percent for $6 above the hourly federal minimum

13  wage rate; 43 percent for $7 above the hourly federal minimum

14  wage rate; and 44 percent for $8 above the hourly federal

15  minimum wage rate.;

16         2.  Five percent of the first $1,500 of actual monthly

17  wages paid in this state for each new employee whose wages

18  exceed $1,500 a month; or

19         3.  Fifteen percent of the first $1,500 of actual

20  monthly wages paid in this state for each new employee who is

21  a welfare transition program participant.

22         (b)  This credit applies only with respect to wages

23  subject to unemployment tax and does not apply for any new

24  employee who is employed for any period less than 3 full

25  months.

26         (c)  If this credit is not fully used in any one year,

27  the unused amount may be carried forward for a period not to

28  exceed 5 years. The carryover credit may be used in a

29  subsequent year when the tax imposed by this chapter for such

30  year exceeds the credit for such year after applying the other

31


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                                          HB 1225, First Engrossed



  1  credits and unused credit carryovers in the order provided in

  2  s. 220.02(8).

  3         (2)  When filing for an enterprise zone jobs credit, a

  4  business must file under oath with the governing body or

  5  enterprise zone development agency having jurisdiction over

  6  the enterprise zone where the business is located, as

  7  applicable, a statement which includes:

  8         (a)  For each new employee for whom this credit is

  9  claimed, the employee's name and place of residence during the

10  taxable year, including the identifying number assigned

11  pursuant to s. 290.0065 to the enterprise zone in which the

12  new employee resides if the new employee is a person residing

13  in an enterprise zone, and, if applicable, documentation that

14  the employee is a qualified Job Training Partnership Act

15  classroom training participant or a welfare transition program

16  participant.

17         (b)  If applicable, the name and address of each

18  permanent employee of the business, including, for each

19  employee who is a resident of an enterprise zone, the

20  identifying number assigned pursuant to s. 290.0065 to the

21  enterprise zone in which the employee resides.

22         (c)  The name and address of the business.

23         (d)  The identifying number assigned pursuant to s.

24  290.0065 to the enterprise zone in which the eligible business

25  is located.

26         (e)  The salary or hourly wages paid to each new

27  employee claimed.

28         (f)  Demonstration to the department that the total

29  number of full-time jobs has increased from the average of the

30  previous 12 months.

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                                          HB 1225, First Engrossed



  1         (g)(f)  Whether the business is a small business as

  2  defined by s. 288.703(1).

  3         Section 7.  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 $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

31


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                                          HB 1225, First Engrossed



  1         (f)  A taxpayer who files a Florida consolidated return

  2  as a member of an affiliated group pursuant to s. 220.131(1)

  3  may be allowed the credit on a consolidated return basis.

  4         (g)  A taxpayer who is eligible to receive the credit

  5  provided for in s. 624.5105 is not eligible to receive the

  6  credit provided by this section.

  7         (2)  ELIGIBILITY REQUIREMENTS.--

  8         (a)  All community contributions by a business firm

  9  shall be in the form specified in s. 220.03(1)(d).

10         (b)  All community contributions must be reserved

11  exclusively for use in projects as defined in s. 220.03(1)(t).

12  The Office of Tourism, Trade, and Economic Development may

13  reserve up to 50 percent of the available annual tax credits

14  for housing for very-low-income households pursuant to s.

15  420.9071(28), for the first 6 months of the fiscal year.

16         (c)  The project must be undertaken by an "eligible

17  sponsor," defined here as:

18         1.  A community action program;

19         2.  A nonprofit community-based community development

20  organization whose mission is the provision of housing for

21  low-income or very-low-income households or increasing

22  entrepreneurial and  job-development opportunities for

23  low-income persons corporation;

24         3.  A neighborhood housing services corporation;

25         4.  A local housing authority, created pursuant to

26  chapter 421;

27         5.  A community redevelopment agency, created pursuant

28  to s. 163.356;

29         6.  The Florida Industrial Development Corporation;

30         7.  An historic preservation district agency or

31  organization;


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                                          HB 1225, First Engrossed



  1         8.  A regional workforce board private industry

  2  council;

  3         9.  A direct-support organization as provided in s.

  4  240.551;

  5         10.  An enterprise zone development agency created

  6  pursuant to s. 290.0056 s. 290.0057; or

  7         11.  A community-based organization incorporated under

  8  chapter 617 which is recognized as educational, charitable, or

  9  scientific pursuant to s. 501(c)(3) of the Internal Revenue

10  Code and whose by-laws and articles of incorporation include

11  affordable housing, economic development, or community

12  development as the primary mission of the corporation;

13         12.  Units of local government;

14         13.  Units of state government; or

15         14.11.  Such other agency as the Office of Tourism,

16  Trade, and Economic Development may, from time to time,

17  designate by rule.

18

19  In no event shall a contributing business firm have a

20  financial interest in the eligible sponsor.

21         (d)  The project shall be located in an area designated

22  as an enterprise zone or a Front Porch Florida Community

23  pursuant to s. 14.2015(9)(b) pursuant to s. 290.0065. Any

24  project designed to construct or rehabilitate housing for

25  low-income or very-low-income households as defined in s.

26  420.9071(19) and (28) low-income housing is exempt from the

27  area requirement of this paragraph. This section does not

28  preclude projects that propose to construct or rehabilitate

29  housing for low-income or very-low-income households on

30  scattered sites. Any project designed to provide increased

31  access to high-speed broadband capabilities which includes


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                                          HB 1225, First Engrossed



  1  coverage of a rural enterprise zone may locate the project's

  2  infrastructure in any area of a rural county.

  3         (3)  APPLICATION REQUIREMENTS.--

  4         (a)  Any eligible sponsor wishing to participate in

  5  this program must submit a proposal to the Office of Tourism,

  6  Trade, and Economic Development which sets forth the sponsor,

  7  the project, the area in which the project is located, and

  8  such supporting information as may be prescribed by rule. The

  9  proposal shall also contain a resolution from the local

10  governmental unit in which it is located certifying that the

11  project is consistent with local plans and regulations.

12         (b)  Any business wishing to participate in this

13  program must submit an application for tax credit to the

14  Office of Tourism, Trade, and Economic Development, which

15  application sets forth the sponsor; the project; and the type,

16  value, and purpose of the contribution. The sponsor shall

17  verify the terms of the application and indicate its receipt

18  of willingness to receive the contribution, which verification

19  indicate its willingness to receive the contribution, which

20  verification must shall be in writing and shall accompany the

21  application for tax credit.

22         (c)  The business firm must submit a separate

23  application for tax credit for each individual contribution

24  that which it makes proposes to contribute to each individual

25  project.

26         (4)  ADMINISTRATION.--

27         (a)  The Office of Tourism, Trade, and Economic

28  Development has authority to adopt rules pursuant to ss.

29  120.536(1) and 120.54 to implement the provisions of this

30  section, including rules for the approval or disapproval of

31  proposals by business firms.


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                                          HB 1225, First Engrossed



  1         (b)  The decision of the Office of Tourism, Trade, and

  2  Economic Development shall be in writing, and, if approved,

  3  the notification must proposal shall state the maximum credit

  4  allowable to the business firm. A copy of the decision shall

  5  be transmitted to the executive director of the Department of

  6  Revenue, who shall apply such credit to the tax liability of

  7  the business firm.

  8         (c)  The Office of Tourism, Trade, and Economic

  9  Development shall periodically monitor all projects in a

10  manner consistent with available resources to ensure that

11  resources are utilized in accordance with this section;

12  however, each project shall be reviewed no less often than

13  once every 2 years.

14         (d)  The Department of Revenue has authority to adopt

15  rules pursuant to ss. 120.536(1) and 120.54 to implement the

16  provisions of this section.

17         (e)  The Office of Tourism, Trade, and Economic

18  Development shall, in consultation with the Department of

19  Community Affairs, the Florida Housing Finance Corporation,

20  and the statewide and regional housing and financial

21  intermediaries, market the availability of the community

22  contribution tax credit program to community-based

23  organizations.

24         Section 8.  Section 288.018, Florida Statutes, is

25  amended to read:

26         288.018  Regional Rural Development Grants Program.--

27         (1)  The Office of Tourism, Trade, and Economic

28  Development shall establish a matching grant program to

29  provide funding to regionally based economic development

30  organizations representing rural counties and communities for

31  the purpose of building the professional capacity of their


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                                          HB 1225, First Engrossed



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

  2  Development is authorized to approve, on an annual basis,

  3  grants to such regionally based economic development

  4  organizations. The maximum amount an organization may receive

  5  in any year will be $35,000, or $100,000 in a rural area of

  6  critical economic concern recommended by the Rural Economic

  7  Development Initiative and designated by the Governor, and

  8  must be matched each year by an equivalent amount of nonstate

  9  resources.

10         (2)  In approving the participants, the Office of

11  Tourism, Trade, and Economic Development shall consider the

12  demonstrated need of the applicant for assistance and require

13  the following:

14         (a)  Documentation of official commitments of support

15  from each of the units of local government represented by the

16  regional organization.

17         (b)  Demonstration that each unit of local government

18  has made a financial or in-kind commitment to the regional

19  organization.

20         (c)  Demonstration that the private sector has made

21  financial or in-kind commitments to the regional organization.

22         (d)  Demonstration that the organization is in

23  existence and actively involved in economic development

24  activities serving the region.

25         (e)  Demonstration of the manner in which the

26  organization is or will coordinate its efforts with those of

27  other local and state organizations.

28         (3)  The Office of Tourism, Trade, and Economic

29  Development may also contract for the development of an

30  enterprise zone web portal or web sites for each enterprise

31  zone which will be used to market the program for job creation


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                                          HB 1225, First Engrossed



  1  in disadvantaged urban and rural enterprise zones. Each

  2  enterprise zone web page should include downloadable links to

  3  state forms and information, as well as local message boards

  4  that help businesses and residents receive information

  5  concerning zone boundaries, job openings, zone programs, and

  6  neighborhood improvement activities.

  7         (4)(3)  The Office of Tourism, Trade, and Economic

  8  Development may expend up to $750,000 $600,000 each fiscal

  9  year from funds appropriated to the Rural Community

10  Development Revolving Loan Fund for the purposes outlined in

11  this section. The Office of Tourism, Trade, and Economic

12  Development may contract with Enterprise Florida, Inc., for

13  the administration of the purposes specified in this section.

14  Funds released to Enterprise Florida, Inc., for this purpose

15  shall be released quarterly and shall be calculated based on

16  the applications in process.

17         Section 9.  Section 288.019, Florida Statutes, is

18  created to read:

19         288.019  Rural considerations in grant review and

20  evaluation processes.--Notwithstanding any other law, and to

21  the fullest extent possible, the member agencies and

22  organizations of the Rural Economic Development Initiative

23  (REDI) as defined in s. 288.0656(6)(a) shall review all grant

24  and loan application evaluation criteria to ensure the fullest

25  access for rural counties as defined in s. 288.0656(2)(b) to

26  resources available throughout the state.

27         (1)  Each REDI agency and organization shall review all

28  evaluation and scoring procedures and develop modifications to

29  those procedures which minimize the impact of a project within

30  a rural area.

31


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                                          HB 1225, First Engrossed



  1         (2)  Evaluation criteria and scoring procedures must

  2  provide for an appropriate ranking based on the proportionate

  3  impact that projects have on a rural area when compared with

  4  similar project impacts on an urban area.

  5         (3)  Evaluation criteria and scoring procedures must

  6  recognize the disparity of available fiscal resources for an

  7  equal level of financial support from an urban county and a

  8  rural county.

  9         (a)  The evaluation criteria should weight contribution

10  in proportion to the amount of funding available at the local

11  level.

12         (b)  In-kind match should be allowed and applied as

13  financial match when a county is experiencing financial

14  distress through elevated unemployment at a rate in excess of

15  the state's average by 5 percentage points or because of the

16  loss of its ad valorem base.

17         (4)  For existing programs, the modified evaluation

18  criteria and scoring procedure must be delivered to the Office

19  of Tourism, Trade, and Economic Development for distribution

20  to the REDI agencies and organizations. The REDI agencies and

21  organizations shall review and make comments. Future rules,

22  programs, evaluation criteria, and scoring processes must be

23  brought before a REDI meeting for review, discussion, and

24  recommendation to allow rural counties fuller access to the

25  state's resources.

26         Section 10.  Subsection (2) of section 288.065, Florida

27  Statutes, is amended to read:

28         288.065  Rural Community Development Revolving Loan

29  Fund.--

30         (2)  The program shall provide for long-term loans,

31  loan guarantees, and loan loss reserves to units of local


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                                          HB 1225, First Engrossed



  1  governments, or economic development organizations

  2  substantially underwritten by a unit of local government,

  3  within counties with populations of 75,000 or less, or any

  4  county that has a population of 100,000 or less and is

  5  contiguous to a county with a population of 75,000 or less, as

  6  determined by the most recent official estimate pursuant to s.

  7  186.901, residing in incorporated and unincorporated areas of

  8  the county, or to units of local government, or economic

  9  development organizations substantially underwritten by a unit

10  of local government, within a rural area of critical economic

11  concern. Requests for loans shall be made by application to

12  the Office of Tourism, Trade, and Economic Development. Loans

13  shall be made pursuant to agreements specifying the terms and

14  conditions agreed to between the applicant local government

15  and the Office of Tourism, Trade, and Economic Development.

16  The loans shall be the legal obligations of the applicant

17  local government. All repayments of principal and interest

18  shall be returned to the loan fund and made available for

19  loans to other applicants. However, in a rural area of

20  critical economic concern designated by the Governor, and upon

21  approval by the Office of Tourism, Trade, and Economic

22  Development, repayments of principal and interest may be

23  retained by the applicant a unit of local government if such

24  repayments are dedicated and matched to fund regionally based

25  economic development organizations representing the rural area

26  of critical economic concern.

27         Section 11.  Subsection (6) of section 288.0656,

28  Florida Statutes, is amended to read:

29         288.0656  Rural Economic Development Initiative.--

30         (6)(a)  By No later than August 1 of each year, 1999,

31  the head of each of the following agencies and organizations


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                                          HB 1225, First Engrossed



  1  shall designate a high-level staff person from within the

  2  agency or organization to serve as the REDI representative for

  3  the agency or organization:

  4         1.  The Department of Community Affairs.

  5         2.  The Department of Transportation.

  6         3.  The Department of Environmental Protection.

  7         4.  The Department of Agriculture and Consumer

  8  Services.

  9         5.  The Department of State.

10         6.  The Department of Health.

11         7.  The Department of Children and Family Services.

12         8.  The Department of Corrections.

13         9.  The Agency for Workforce Innovation Department of

14  Labor and Employment Security.

15         10.  The Department of Education.

16         11.  The Department of Juvenile Justice.

17         12.11.  The Fish and Wildlife Conservation Commission.

18         13.12.  Each water management district.

19         14.13.  Enterprise Florida, Inc.

20         15.  Workforce Florida, Inc.

21         16.14.  The Florida Commission on Tourism or VISIT

22  Florida.

23         17.15.  The Florida Regional Planning Council

24  Association.

25         18.16.  The Florida State Rural Development Council.

26         19.17.  The Institute of Food and Agricultural Sciences

27  (IFAS).

28

29  An alternate for each designee shall also be chosen, and the

30  names of the designees and alternates shall be sent to the

31


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                                          HB 1225, First Engrossed



  1  director of the Office of Tourism, Trade, and Economic

  2  Development.

  3         (b)  Each REDI representative must have comprehensive

  4  knowledge of his or her agency's functions, both regulatory

  5  and service in nature, and of the state's economic goals,

  6  policies, and programs. This person shall be the primary point

  7  of contact for his or her agency with REDI on issues and

  8  projects relating to economically distressed rural communities

  9  and with regard to expediting project review, shall ensure a

10  prompt effective response to problems arising with regard to

11  rural issues, and shall work closely with the other REDI

12  representatives in the identification of opportunities for

13  preferential awards of program funds and allowances and waiver

14  of program requirements when necessary to encourage and

15  facilitate long-term private capital investment and job

16  creation.

17         (c)  The REDI representatives shall work with REDI in

18  the review and evaluation of statutes and rules for adverse

19  impact on rural communities and the development of alternative

20  proposals to mitigate that impact.

21         (d)  Each REDI representative shall be responsible for

22  ensuring that each district office or facility of his or her

23  agency is informed about the Rural Economic Development

24  Initiative and for providing assistance throughout the agency

25  in the implementation of REDI activities.

26         Section 12.  Section 288.1088, Florida Statutes, is

27  amended to read:

28         288.1088  Quick Action Closing Fund.--

29         (1)(a)  The Legislature finds that attracting,

30  retaining, and providing favorable conditions for the growth

31  of certain high-impact business facilities, privately


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                                          HB 1225, First Engrossed



  1  developed critical rural infrastructure, or key facilities in

  2  economically distressed urban or rural communities which

  3  provide provides widespread economic benefits to the public

  4  through high-quality employment opportunities in such

  5  facilities or and in related facilities attracted to the

  6  state, through the increased tax base provided by the

  7  high-impact facility and related businesses in related

  8  sectors, through an enhanced entrepreneurial climate in the

  9  state and the resulting business and employment opportunities,

10  and through the stimulation and enhancement of the state's

11  universities and community colleges. In the global economy,

12  there exists serious and fierce international competition for

13  these facilities, and in most instances, when all available

14  resources for economic development have been used, the state

15  continues to encounter severe competitive disadvantages in

16  vying for these high-impact business facilities. Florida's

17  rural areas must provide a competitive environment for

18  business in the information age. This often requires an

19  incentive to make it feasible for private investors to provide

20  infrastructure in those areas.

21         (b)  The Legislature therefore declares that sufficient

22  resources shall be available to respond to extraordinary

23  economic opportunities and to compete effectively for these

24  high-impact business facilities, critical private

25  infrastructure in rural areas, and key businesses in

26  economically distressed urban or rural communities.

27         (2)  There is created within the Office of Tourism,

28  Trade, and Economic Development the Quick Action Closing Fund.

29         (3)(a)  Enterprise Florida, Inc., shall evaluate

30  individual proposals for high-impact business facilities and

31  forward recommendations regarding the use of moneys in the


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                                          HB 1225, First Engrossed



  1  fund for such facilities to the director of the Office of

  2  Tourism, Trade, and Economic Development. Such evaluation and

  3  recommendation must include, but need not be limited to:

  4         1.  A description of the type of facility or

  5  infrastructure, its operations business operation, and the

  6  associated product or service associated with the facility.

  7         2.  The number of full-time-equivalent jobs that will

  8  be created by the facility and the total estimated average

  9  annual wages of those jobs or, in the case of privately

10  developed rural infrastructure, the types of business

11  activities and jobs stimulated by the investment.

12         3.  The cumulative amount of investment to be dedicated

13  to the facility within a specified period.

14         4.  A statement of any special impacts the facility is

15  expected to stimulate in a particular business sector in the

16  state or regional economy or in the state's universities and

17  community colleges.

18         5.  A statement of the role the incentive is expected

19  to play in the decision of the applicant business to locate or

20  expand in this state or for the private investor to provide

21  critical rural infrastructure.

22         (b)  Upon receipt of the evaluation and recommendation

23  from Enterprise Florida, Inc., the director shall recommend

24  approval or disapproval of a project for receipt of funds from

25  the Quick Action Closing Fund to the Governor. In recommending

26  a project high-impact business facility, the director shall

27  include proposed performance conditions that the project

28  facility must meet to obtain incentive funds. The Governor

29  shall consult with the President of the Senate and the Speaker

30  of the House of Representatives before giving final approval

31  for a project.  The Executive Office of the Governor shall


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                                          HB 1225, First Engrossed



  1  recommend approval of a project and release of funds pursuant

  2  to the legislative consultation and review requirements set

  3  forth in s. 216.177.  The recommendation must include proposed

  4  performance conditions the project must meet to obtain funds.

  5         (c)  Upon the approval of the Governor, the director of

  6  the Office of Tourism, Trade, and Economic Development and the

  7  high-impact business shall enter into a contract that sets

  8  forth the conditions for payment of moneys from the fund. The

  9  contract must include the total amount of funds awarded; the

10  performance conditions that must be met to obtain the award,

11  including, but not limited to, net new employment in the

12  state, average salary, and total capital investment;

13  demonstrate a baseline of current service and a measure of

14  enhanced capability; the methodology for validating

15  performance; the schedule of payments from the fund; and

16  sanctions for failure to meet performance conditions.

17         (d)  Enterprise Florida, Inc., shall validate

18  contractor performance. Such validation shall be reported

19  within 6 months after completion of the contract to the

20  Governor, President of the Senate, and the Speaker of the

21  House of Representatives.

22         Section 13.  Subsection (2) of section 288.9015,

23  Florida Statutes, is amended to read:

24         288.9015  Enterprise Florida, Inc.; purpose; duties.--

25         (2)  It shall be the responsibility of Enterprise

26  Florida, Inc., to aggressively market Florida's rural

27  communities, and distressed urban communities, and enterprise

28  zones as locations for potential new investment, to

29  aggressively assist in the retention and expansion of existing

30  businesses in these communities, and to aggressively assist

31  these communities in the identification and development of new


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                                          HB 1225, First Engrossed



  1  economic development opportunities for job creation, fully

  2  using state incentive programs such as the Qualified Target

  3  Industry Tax Refund Program under s. 288.106 and the Quick

  4  Action Closing Fund under s. 288.1088 in economically

  5  distressed areas.

  6         Section 14.  Section 290.004, Florida Statutes, is

  7  amended to read:

  8         290.004  Definitions relating to Florida Enterprise

  9  Zone Act.--As used in ss. 290.001-290.016:

10         (1)  "Community investment corporation" means a black

11  business investment corporation, a certified development

12  corporation, a small business investment corporation, or other

13  similar entity incorporated under Florida law that has limited

14  its investment policy to making investments solely in minority

15  business enterprises.

16         (2)  "Department" means the Department of Commerce.

17         (3)  "Director" means the director of the Office of

18  Tourism, Trade, and Economic Development.

19         (4)  "Governing body" means the council or other

20  legislative body charged with governing the county or

21  municipality.

22         (5)  "Interagency coordinating council" means the

23  Enterprise Zone Interagency Coordinating Council created

24  pursuant to s. 290.009.

25         (6)  "Minority business enterprise" has the same

26  meaning as in s. 288.703.

27         (7)  "Office" means the Office of Tourism, Trade, and

28  Economic Development.

29         (8)  "Rural enterprise zone" means an enterprise zone

30  that is nominated by a county having a population of 75,000 or

31  fewer, or a county having a population of 100,000 or fewer


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                                          HB 1225, First Engrossed



  1  which is contiguous to a county having a population of 75,000

  2  or fewer, or by a municipality in such a county, or by such a

  3  county and one or more municipalities. An enterprise zone

  4  designated in accordance with s. 370.28 or s. 290.0065(5)(b),

  5  is considered to be a rural enterprise zone.

  6         (9)(8)  "Secretary" means the Secretary of Commerce.

  7         (10)(9)  "Small business" has the same meaning as in s.

  8  288.703.

  9         Section 15.  Enterprise zone designation for Sarasota

10  County or Sarasota County and Sarasota.--Sarasota County, or

11  Sarasota County and the City of Sarasota jointly, may apply to

12  the Office of Tourism, Trade, and Economic Development for

13  designation of one enterprise zone within the county, or

14  within both the county and the municipality, which zone

15  encompasses an area that is south of the north county line,

16  west of Tuttle Avenue, north of 10th Street, and east of U.S.

17  Highway 41. The application must be submitted by December 31,

18  2001, and must comply with the requirements of section

19  290.0055, Florida Statutes. Notwithstanding the provisions of

20  section 290.0065, Florida Statutes, limiting the total number

21  of enterprise zones designated and the number of enterprise

22  zones within a population category, the Office of Tourism,

23  Trade, and Economic Development may designate one enterprise

24  zone under this section. The Office of Tourism, Trade, and

25  Economic Development shall establish the initial effective

26  date of the enterprise zone designated under this section.

27         Section 16.  Section 290.00555, Florida Statutes, is

28  amended to read:

29         290.00555  Satellite enterprise zones.--Before December

30  31, 1999, Any municipality an area of which has previously

31  received designation as an enterprise zone in the population


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                                          HB 1225, First Engrossed



  1  category described in s. 290.0065(3)(a)3. may create a

  2  satellite enterprise zone not exceeding 1.5 square miles in

  3  area outside of and, notwithstanding anything contained in s.

  4  290.0055(4), or any other law, in addition to the previously

  5  designated enterprise zone boundaries. The Office of Tourism,

  6  Trade, and Economic Development shall amend the boundaries of

  7  the areas previously designated by any such municipality as

  8  enterprise zones upon receipt of a resolution adopted by the

  9  municipality describing the satellite enterprise zone areas,

10  as long as the additional areas are consistent with the

11  categories, criteria, and limitations imposed by s. 290.0055.

12  However, the requirements imposed by s. 290.0055(4)(d) do not

13  apply to such satellite enterprise zone areas.

14         Section 17.  Satellite enterprise zones may be created

15  pursuant to section 290.00555, Florida Statutes, effective

16  retroactively to December 31, 1999. Resolutions adopted to

17  create satellite enterprise zones under this section must be

18  submitted to the Office of Tourism, Trade, and Economic

19  Development no later than August 1, 2001. The Office of

20  Tourism, Trade, and Economic Development must amend the

21  boundaries of previously designated enterprise zones to create

22  eligible satellite enterprise zones no later than September 1,

23  2001. Notwithstanding the time limitations contained in

24  chapter 212, Florida Statutes, a business in a satellite

25  enterprise zone designated under this section which was

26  eligible to receive tax incentives pursuant to section

27  212.08(5)(g) and (h) and section 212.096, Florida Statutes,

28  during the period beginning December 31, 1999, and ending on

29  the date of the creation of the satellite enterprise zone,

30  must submit an application for the tax incentives by December

31


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                                          HB 1225, First Engrossed



  1  1, 2001. All other requirements of the enterprise zone program

  2  apply to such a business.

  3         Section 18.  Section 290.0065, Florida Statutes, is

  4  amended to read:

  5         290.0065  State designation of enterprise zones.--

  6         (1)  Upon application of the governing body of a county

  7  or municipality or of a county and one or more municipalities

  8  jointly pursuant to s. 290.0055, Enterprise Florida, Inc., and

  9  the office department, in consultation with the interagency

10  coordinating council, shall determine which areas nominated by

11  such governing bodies meet the criteria outlined in s.

12  290.0055 and are the most appropriate for designation as state

13  enterprise zones. The office department is authorized to

14  designate up to 5 areas within each of the categories

15  established in subparagraphs (3)(a)1., 2., 3., 4., and 5.,

16  except that the office department may only designate a total

17  of 20 areas as enterprise zones. The office department shall

18  not designate more than three enterprise zones in any one

19  county. All designations, including any provision for

20  redesignations, of state enterprise zones pursuant to this

21  section shall be effective July 1, 1995.

22         (2)  Each application made pursuant to s. 290.0055

23  shall be ranked competitively within the appropriate category

24  established pursuant to subsection (3) based on the pervasive

25  poverty, unemployment, and general distress of the area; the

26  strategic plan, including local fiscal and regulatory

27  incentives, prepared pursuant to s. 290.0057; and the

28  prospects for new investment and economic development in the

29  area. Pervasive poverty, unemployment, and general distress

30  shall be weighted 35 percent; strategic plan and local fiscal

31  and regulatory incentives shall be weighted 40 percent; and


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                                          HB 1225, First Engrossed



  1  prospects for new investment and economic development in the

  2  area shall be weighted 25 percent.

  3         (3)(a)  Each area designated as an enterprise zone

  4  pursuant to this section shall be placed in one of the

  5  following categories based on the 1990 census:

  6         1.  Communities consisting of census tracts in areas

  7  having a total population of 150,000 persons or more.

  8         2.  Communities consisting of census tracts in areas

  9  having a total population of 50,000 persons or more but less

10  than 150,000 persons.

11         3.  Communities having a population of 20,000 persons

12  or more but less than 50,000 persons.

13         4.  Communities having a population of 7,500 persons or

14  more but less than 20,000 persons.

15         5.  Communities having a population of less than 7,500

16  persons.

17         (b)  Any area authorized to be an enterprise zone by

18  both a county and a municipality shall be placed in the

19  appropriate category established under paragraph (a) in which

20  an application by the municipality would have been considered

21  if the municipality had acted alone, if at least 60 percent of

22  the population of the area authorized to be an enterprise zone

23  resides within the municipality. An area authorized to be an

24  enterprise zone by a county and one or more municipalities

25  shall be placed in the category in which an application by the

26  municipality with the highest percentage of residents in such

27  area would have been considered if such municipality had

28  authorized the area to be an enterprise zone. An area

29  authorized to be an enterprise zone by a county as defined by

30  s. 125.011(1) shall be placed in the category in which an

31  application by the municipality in which the area is located


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                                          HB 1225, First Engrossed



  1  would have been considered if the municipality had authorized

  2  such area to be an enterprise zone. An area authorized to be

  3  an enterprise zone by a county as defined by s. 125.011(1)

  4  which area is located in two or more municipalities shall be

  5  placed in the category in which an application by the

  6  municipality with the highest percentage of residents in such

  7  area would have been considered if such municipality had

  8  authorized such area to be an enterprise zone.

  9         (4)(a)  Notwithstanding s. 290.0055, any area existing

10  as a state enterprise zone as of the effective date of this

11  section and originally approved through a joint application

12  from a county and municipality, or through an application from

13  a county as defined in s. 125.011(1), shall be redesignated as

14  a state enterprise zone upon the creation of an enterprise

15  zone development agency pursuant to s. 290.0056 and the

16  completion of a strategic plan pursuant to s. 290.0057.  Any

17  area redesignated pursuant to this subsection, other than an

18  area located in a county defined in s. 125.011(1), may be

19  relocated or modified by the appropriate governmental bodies.

20  Such relocation or modification shall be identified in the

21  strategic plan and shall meet the requirements for designation

22  as established by s. 290.005. Any relocation or modification

23  shall be submitted on or before June 1, 1996.

24         (b)  The office department shall place any area

25  designated as a state enterprise zone pursuant to this

26  subsection in the appropriate category established in

27  subsection (3), and include such designations within the

28  limitations on state enterprise zone designations set out in

29  subsection (1).

30         (c)  Any county or municipality having jurisdiction

31  over an area designated as a state enterprise zone pursuant to


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                                          HB 1225, First Engrossed



  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 shall be designated a state

24  rural enterprise zone by the office department upon completion

25  of the requirements set out in paragraph (d) and may

26  incorporate and include such designated rural empowerment zone

27  or rural enterprise community within the boundaries of its

28  state enterprise zones without any limitation as to size.

29         (c)  Any county or municipality having jurisdiction

30  over an area designated as a state enterprise zone pursuant to

31


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                                          HB 1225, First Engrossed



  1  this subsection, other than a county defined in s. 125.011(1),

  2  may not apply for designation of another area.

  3         (d)  Prior to designating such areas as state

  4  enterprise zones, the office department shall ensure that the

  5  governing body having jurisdiction over the zone submits the

  6  strategic plan required pursuant to 7 C.F.R. part 25 or 24

  7  C.F.R. part 597 to the office department, and creates an

  8  enterprise zone development agency pursuant to s. 290.0056.

  9         (e)  The office department shall place any area

10  designated as a state enterprise zone pursuant to this

11  subsection in the appropriate category established in

12  subsection (3), and include such designations within the

13  limitations on state enterprise zone designations set out in

14  subsection (1).

15         (6)(a)  The office department, in consultation with

16  Enterprise Florida, Inc., and the interagency coordinating

17  council, may develop guidelines shall promulgate any rules

18  necessary for the approval of areas under this section by the

19  director secretary.

20         (b)  Such guidelines rules shall provide for the

21  measurement of pervasive poverty, unemployment, and general

22  distress using the criteria outlined by s. 290.0058.

23         (c)  Such guidelines rules shall provide for the

24  evaluation of the strategic plan and local fiscal and

25  regulatory incentives for effectiveness, including how the

26  following key principles will be implemented by the governing

27  body or bodies:

28         1.  Economic opportunity, including job creation within

29  the community and throughout the region, as well as

30  entrepreneurial initiatives, small business expansion, and

31  training for jobs that offer upward mobility.


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                                          HB 1225, First Engrossed



  1         2.  Sustainable community development that advances the

  2  creation of livable and vibrant communities through

  3  comprehensive approaches that coordinate economic, physical,

  4  community, and human development.

  5         3.  Community-based partnerships involving the

  6  participation of all segments of the community.

  7         4.  Strategic vision for change that identifies how the

  8  community will be revitalized. This vision should include

  9  methods for building on community assets and coordinate a

10  response to community needs in a comprehensive fashion. This

11  vision should provide goals and performance benchmarks for

12  measuring progress and establish a framework for evaluating

13  and adjusting the strategic plan.

14         5.  Local fiscal and regulatory incentives enacted

15  pursuant to s. 290.0057(1)(e). These incentives should induce

16  economic revitalization, including job creation and small

17  business expansion.

18         (d)  Such guidelines may rules shall provide methods

19  for evaluating the prospects for new investment and economic

20  development in the area, including a review and evaluation of

21  any previous state enterprise zones located in the area.

22         (7)  Upon approval by the director secretary of a

23  resolution authorizing an area to be an enterprise zone

24  pursuant to this section, the office department shall assign a

25  unique identifying number to that resolution. The office

26  department shall provide the Department of Revenue and

27  Enterprise Florida, Inc., with a copy of each resolution

28  approved, together with its identifying number.

29         (8)(a)  Notwithstanding s. 290.0055, any area existing

30  as a state enterprise zone as of December 30, 1994, which has

31  received at least $1 million in state community development


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                                          HB 1225, First Engrossed



  1  funds and at least $500,000 in federal community development

  2  funds, which has less than 300 businesses located within the

  3  boundaries of the enterprise zone, and which has been

  4  designated by the United States Department of Agriculture as a

  5  "Champion Community" shall be redesignated as a state

  6  enterprise zone upon the creation of an enterprise zone

  7  development agency pursuant to s. 290.0056 and the completion

  8  of a strategic plan pursuant to s. 290.0057.

  9         (b)  Such designation shall be in addition to the

10  limitations of state enterprise zone designation set out in

11  subsection (1).

12         (9)  The Office of Tourism, Trade, and Economic

13  Development may amend the boundaries of any enterprise zone

14  designated by the state pursuant to this section, consistent

15  with the categories, criteria, and limitations imposed in this

16  section upon the establishment of such enterprise zone and

17  only if consistent with the determinations made in s.

18  290.0058(2).

19         (9)(10)  Before December 31, 1998, the governing body

20  of a county in which an enterprise zone designated pursuant to

21  paragraph (5)(b) is located may apply to the Office of

22  Tourism, Trade, and Economic Development to amend the

23  boundaries of the enterprise zone for the purpose of replacing

24  areas not suitable for development.  The Office of Tourism,

25  Trade, and Economic Development shall approve the application

26  if it does not increase the overall size of the enterprise

27  zone.  Except that upon the request of the governing body of a

28  home rule charter county, or any county the government of

29  which has been consolidated with the government of one or more

30  municipalities in accordance with s. 9, Art. VIII of the State

31  Constitution of 1885, as preserved by s. 6(e), Art. VIII of


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                                          HB 1225, First Engrossed



  1  the State Constitution as revised in 1968 and subsequently

  2  amended, the Office of Tourism, Trade, and Economic

  3  Development may amend the boundaries of an area designated as

  4  an enterprise zone upon the receipt of a resolution adopted by

  5  such governing body describing the amended boundaries, so long

  6  as the added area does not increase the overall size of the

  7  expanded zone more than its original size or 20 square miles,

  8  whichever is larger, and is consistent with the categories,

  9  criteria, and limitations imposed by s. 290.0055.

10         (10)(11)  Before December 31, 1999, any county as

11  defined in s. 125.011(1) may create a satellite enterprise

12  zone not exceeding 3 square miles in area outside of and,

13  notwithstanding anything contained in s. 290.0055(4) or

14  elsewhere, in addition to the previously designated 20 square

15  miles of enterprise zones. The Office of Tourism, Trade, and

16  Economic Development shall amend the boundaries of the areas

17  previously designated by any such county as enterprise zones

18  upon the receipt of a resolution adopted by such governing

19  body describing the satellite enterprise zone, as long as the

20  additional area is consistent with the categories, criteria,

21  and limitations imposed by s. 290.0055, provided that the

22  20-square-mile limitation and the requirements imposed by s.

23  290.0055(4)(d) do not apply to such satellite enterprise zone.

24         Section 19.  Section 290.00676, Florida Statutes, is

25  created to read:

26         290.00676  Amendment of rural enterprise zone

27  boundaries.--Notwithstanding any other law, upon

28  recommendation by Enterprise Florida, Inc., the Office of

29  Tourism, Trade, and Economic Development may approve requests

30  to amend the boundaries of rural enterprise zones as defined

31


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                                          HB 1225, First Engrossed



  1  in s. 290.004(8). Boundary amendments authorized by this

  2  section are subject to the following requirements:

  3         (1)  The amendment may increase the size of the rural

  4  enterprise zone up to a maximum zone size of 20 square miles.

  5         (2)  The amendment may increase the zone's number of

  6  noncontiguous areas by one, if the additional noncontiguous

  7  area has zero population. For purposes of this subsection, the

  8  pervasive poverty criteria may be set aside for the addition

  9  of a noncontiguous area.

10         (3)  The local enterprise zone development agency must

11  request the amendment from Enterprise Florida, Inc., prior to

12  December 30, 2001. The request must contain maps and

13  sufficient information to allow the office to determine the

14  number of noncontiguous areas and the total size of the rural

15  enterprise zone.

16         Section 20.  Section 290.00677, Florida Statutes, is

17  created to read:

18         290.00677  Rural enterprise zones; special

19  qualifications.--

20         (1)  Notwithstanding the enterprise zone residency

21  requirements set out in s. 212.096(1)(c), eligible businesses

22  as defined by s. 212.096(1)(a), located in rural enterprise

23  zones as defined by s. 290.004, may receive the basic minimum

24  credit provided under s. 212.096 for creating a new job and

25  hiring a person residing within the jurisdiction of a rural

26  county, as defined by s. 288.106(1)(r). All other provisions

27  of s. 212.096, including, but not limited to, those relating

28  to the award of enhanced credits, apply to such businesses.

29         (2)  Notwithstanding the enterprise zone residency

30  requirements set out in s. 220.03(1)(q), eligible businesses

31  as defined by s. 212.096(1)(a), located in rural enterprise


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                                          HB 1225, First Engrossed



  1  zones as defined in s. 290.004, may receive the basic minimum

  2  credit provided under s. 220.181 for creating a new job and

  3  hiring a person residing within the jurisdiction of a rural

  4  county, as defined by s. 288.106(1)(r). All other provisions

  5  of s. 220.181, including, but not limited to, those relating

  6  to the award of enhanced credits apply to such businesses.

  7         Section 21.  Section 290.00694, Florida Statutes, is

  8  created to read:

  9         290.00694  Enterprise zone designation for rural

10  communities.--An area designated as a rural champion community

11  under the Taxpayer Relief Act of 1997 or a community within a

12  designated rural area of critical economic concern under s.

13  288.0656 may submit an application to Enterprise Florida,

14  Inc., for review and recommendation to the office for

15  designation as an enterprise zone. The application must be

16  submitted by December 31, 2001. Notwithstanding the provisions

17  of s. 290.0065 limiting the total number of enterprise zones

18  designated and the number of enterprise zones within a

19  population category, the Office of Tourism, Trade, and

20  Economic Development may designate enterprise zones under this

21  section. Upon completion of the requirements set out in s.

22  290.0065(5)(d), the Office of Tourism, Trade, and Economic

23  Development shall establish the initial effective date of the

24  enterprise zones designated pursuant to this section. Only one

25  community in each county in a rural area of critical economic

26  concern may be designated as an enterprise zone.

27         Section 22.  Subsection (3) of section 290.007, Florida

28  Statutes, is amended to read:

29         290.007  State incentives available in enterprise

30  zones.--The following incentives are provided by the state to

31  encourage the revitalization of enterprise zones:


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                                          HB 1225, First Engrossed



  1         (3)  The community contribution tax credits provided in

  2  ss. 212.08, 220.183, and 624.5105.

  3         Section 23.  Subsection (7) is added to section

  4  290.048, Florida Statutes, to read:

  5         290.048  General powers of Department of Community

  6  Affairs under ss. 290.0401-290.049.--The department has all

  7  the powers necessary or appropriate to carry out the purposes

  8  and provisions of the program, including the power to:

  9         (7)  Establish advisory committees and solicit

10  participation in designing, administering, and evaluating the

11  program and in linking the program with other housing and

12  community development resources.

13         Section 24.  Section 290.049, Florida Statutes, is

14  repealed.

15         Section 25.  Subsection (4) of section 370.28, Florida

16  Statutes, is repealed.

17         Section 26.  Paragraph (e) of subsection (2) of section

18  380.06, Florida Statutes, is amended to read:

19         380.06  Developments of regional impact.--

20         (2)  STATEWIDE GUIDELINES AND STANDARDS.--

21         (e)  With respect to residential, hotel, motel, office,

22  and retail developments, the applicable guidelines and

23  standards shall be increased by 50 percent in urban central

24  business districts and regional activity centers of

25  jurisdictions whose local comprehensive plans are in

26  compliance with part II of chapter 163. With respect to

27  multiuse developments, the applicable guidelines and standards

28  shall be increased by 100 percent in urban central business

29  districts and regional activity centers of jurisdictions whose

30  local comprehensive plans are in compliance with part II of

31  chapter 163, if one land use of the multiuse development is


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                                          HB 1225, First Engrossed



  1  residential and amounts to not less than 35 percent of the

  2  jurisdiction's applicable residential threshold.  With respect

  3  to resort or convention hotel developments, the applicable

  4  guidelines and standards shall be increased by 150 percent in

  5  urban central business districts and regional activity centers

  6  of jurisdictions whose local comprehensive plans are in

  7  compliance with part II of chapter 163 and where the increase

  8  is specifically for a proposed resort or convention hotel

  9  located in a county with a population greater than 500,000 and

10  the local government specifically designates that the proposed

11  resort or convention hotel development will serve an existing

12  convention center of more than 250,000 gross square feet built

13  prior to July 1, 1992. The applicable guidelines and standards

14  shall be increased by 200 percent for development in any area

15  designated by the Governor as a rural area of critical

16  economic concern pursuant to s. 288.0656 during the

17  effectiveness of the designation. The Administration

18  Commission, upon the recommendation of the state land planning

19  agency, shall implement this paragraph by rule no later than

20  December 1, 1993.  The increased guidelines and standards

21  authorized by this paragraph shall not be implemented until

22  the effectiveness of the rule which, among other things, shall

23  set forth the pertinent characteristics of urban central

24  business districts and regional activity centers.

25         Section 27.  Subsections (15) and (19) of section

26  420.503, Florida Statutes, are amended to read:

27         420.503  Definitions.--As used in this part, the term:

28         (15)  "Elderly" means persons 62 years of age or older;

29  however, this definition does not prohibit housing from being

30  deemed housing for the elderly as defined in subsection (19)

31


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                                          HB 1225, First Engrossed



  1  if such housing otherwise meets the requirements of subsection

  2  (19).

  3         (19)  "Housing for the elderly" means, for purposes of

  4  s. 420.5087(3)(c)2., any nonprofit housing community that is

  5  financed by a mortgage loan made or insured by the United

  6  States Department of Housing and Urban Development under s.

  7  202, s. 202 with a s. 8 subsidy, s. 221(d)(3) or (4), or s.

  8  236 of the National Housing Act, as amended, and that is

  9  subject to income limitations established by the United States

10  Department of Housing and Urban Development, or any program

11  funded by the Rural Development Agency of the United States

12  Department of Agriculture and subject to income limitations

13  established by the United States Department of Agriculture. A

14  project which qualifies for an exemption under the Fair

15  Housing Act as housing for older persons as defined by s.

16  760.29(4) shall qualify as housing for the elderly for

17  purposes of s. 420.5087(3)(c)2. and for purposes of any loans

18  made under s. 420.508. In addition, if the corporation adopts

19  a qualified allocation plan pursuant to s. 42(m)(1)(B) of the

20  Internal Revenue Code or any other rules that prioritize

21  projects targeting the elderly for purposes of allocating tax

22  credits pursuant to s. 420.5099 or for purposes of the HOME

23  program under s. 420.5089, a project which qualifies for an

24  exemption under the Fair Housing Act as housing for older

25  persons as defined by s. 760.29(4) shall qualify as a project

26  targeted for the elderly, if the project satisfies the other

27  requirements set forth in this part.

28         Section 28.  Subsection (39) is added to section

29  420.507, Florida Statutes, to read:

30         420.507  Powers of the corporation.--The corporation

31  shall have all the powers necessary or convenient to carry out


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                                          HB 1225, First Engrossed



  1  and effectuate the purposes and provisions of this part,

  2  including the following powers which are in addition to all

  3  other powers granted by other provisions of this part:

  4         (39)  To create recognition programs to honor

  5  individuals, community-based development organizations, units

  6  of local government, or others who have demonstrated the

  7  ideals of community stewardship and increased access to

  8  housing for low-income households, including their stewardship

  9  in economically distressed areas. Such programs may

10  incorporate certificates of recognition by the Governor and

11  may include presentation by the Governor or his

12  representative.

13         Section 29.  Paragraph (a) of subsection (1) of section

14  420.5088, Florida Statutes, is amended to read:

15         420.5088  Florida Homeownership Assistance

16  Program.--There is created the Florida Homeownership

17  Assistance Program for the purpose of assisting low-income

18  persons in purchasing a home by reducing the cost of the home

19  with below-market construction financing, by reducing the

20  amount of down payment and closing costs paid by the borrower

21  to a maximum of 5 percent of the purchase price, or by

22  reducing the monthly payment to an affordable amount for the

23  purchaser. Loans shall be made available at an interest rate

24  that does not exceed 3 percent. The balance of any loan is due

25  at closing if the property is sold or transferred.

26         (1)  For loans made available pursuant to s.

27  420.507(23)(a)1. or 2.:

28         (a)  The corporation may underwrite and make those

29  mortgage loans through the program to persons or families who

30  are eligible to participate in the corporation's single-family

31  mortgage revenue bond programs and who have incomes that do


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                                          HB 1225, First Engrossed



  1  not exceed 80 percent of the state or local median income,

  2  whichever is greater, adjusted for family size.  If the

  3  corporation determines that there is insufficient demand for

  4  such loans by persons or families who are eligible to

  5  participate in the corporation's single-family mortgage

  6  revenue bond programs, the corporation may make such mortgage

  7  loans to other persons or families who have incomes that do

  8  not exceed 80 percent of the state or local median income,

  9  whichever amount is greater.

10         Section 30.  Subsection (11) of section 420.5092,

11  Florida Statutes, is amended to read:

12         420.5092  Florida Affordable Housing Guarantee

13  Program.--

14         (11)  The maximum total amount of revenue bonds that

15  may be issued by the corporation pursuant to subsection (5) is

16  $400 $200 million.

17         Section 31.  Subsections (2), (4), and (5) of section

18  624.5105, Florida Statutes, are amended to read:

19         624.5105  Community contribution tax credit;

20  authorization; limitations; eligibility and application

21  requirements; administration; definitions; expiration.--

22         (2)  ELIGIBILITY REQUIREMENTS.--

23         (a)  Each community contribution by an insurer must be

24  in a form specified in subsection (5).

25         (b)  Each community contribution must be reserved

26  exclusively for use in a project as defined in s.

27  220.03(1)(t).

28         (c)  The project must be undertaken by an "eligible

29  sponsor," as which term is defined in s. 220.183(2)(c). as:

30         1.  A community action program;

31         2.  A community development corporation;


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                                          HB 1225, First Engrossed



  1         3.  A neighborhood housing services corporation;

  2         4.  A local housing authority created pursuant to

  3  chapter 421;

  4         5.  A community redevelopment agency created pursuant

  5  to s. 163.356;

  6         6.  The Florida Industrial Development Corporation;

  7         7.  A historic preservation district agency or

  8  organization;

  9         8.  A private industry council;

10         9.  An enterprise zone development agency created

11  pursuant to s. 290.0057; or

12         10.  Such other agency as the director may, from time

13  to time, designate by rule.

14

15  In no event shall a contributing insurer have a financial

16  interest in the eligible sponsor.

17         (d)  The project shall be located in an area designated

18  as an enterprise zone or a Front Porch Community pursuant to

19  s. 14.2015(9)(b) s. 290.0065.  Any project designed to

20  construct or rehabilitate housing for low-income or

21  very-low-income households as defined in s. 420.9071(19) and

22  (28) low-income housing is exempt from the area requirement of

23  this paragraph.

24         (4)  ADMINISTRATION.--

25         (a)1.  The Office of Tourism, Trade, and Economic

26  Development is authorized to adopt all rules necessary to

27  administer this section, including rules for the approval or

28  disapproval of proposals by insurers.

29         2.  The decision of the director shall be in writing,

30  and, if approved, the proposal shall state the maximum credit

31  allowable to the insurer. A copy of the decision shall be


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                                          HB 1225, First Engrossed



  1  transmitted to the executive director of the Department of

  2  Revenue, who shall apply such credit to the tax liability of

  3  the insurer.

  4         3.  The office shall monitor all projects periodically,

  5  in a manner consistent with available resources to ensure that

  6  resources are utilized in accordance with this section;

  7  however, each project shall be reviewed no less frequently

  8  than once every 2 years.

  9         4.  The Office of Tourism, Trade, and Economic

10  Development shall, in consultation with the Department of

11  Community Affairs, the Florida Housing Finance Corporation,

12  and the statewide and regional housing and financial

13  intermediaries, market the availability of the community

14  contribution tax credit program to community-based

15  organizations.

16         (b)  The Department of Revenue shall adopt any rules

17  necessary to ensure the orderly implementation and

18  administration of this section.

19         (5)  DEFINITIONS.--For the purpose of this section:

20         (a)  "Community contribution" means the grant by an

21  insurer of any of the following items:

22         1.  Cash or other liquid assets.

23         2.  Real property.

24         3.  Goods or inventory.

25         4.  Other physical resources which are identified by

26  the department.

27         (b)  "Director" means the director of the Office of

28  Tourism, Trade, and Economic Development.

29         (c)  "Local government" means any county or

30  incorporated municipality in the state.

31


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                                          HB 1225, First Engrossed



  1         (d)  "Office" means the Office of Tourism, Trade, and

  2  Economic Development.

  3         (e)  "Project" means an activity as defined in s.

  4  220.03(1)(t). any activity undertaken by an eligible sponsor,

  5  as defined in subsection (2), which is designed to construct,

  6  improve, or substantially rehabilitate housing or commercial,

  7  industrial, or public resources and facilities or to improve

  8  entrepreneurial and job-development opportunities for

  9  low-income persons.

10         Section 32.  Subsection (7) is added to section

11  125.0103, Florida Statutes, to read:

12         125.0103  Ordinances and rules imposing price controls;

13  findings required; procedures.--

14         (7)  Notwithstanding any other provisions of this

15  section, municipalities, counties, or other entity of local

16  government may adopt and maintain in effect any law,

17  ordinance, rule, or other measure which is adopted for the

18  purposes of increasing the supply of affordable housing using

19  land use mechanisms such as inclusionary housing ordinances.

20         Section 33.  Subsection (7) is added to section

21  166.043, Florida Statutes, to read:

22         166.043  Ordinances and rules imposing price controls;

23  findings required; procedures.--

24         (1)(a)  Except as hereinafter provided, no county,

25  municipality, or other entity of local government shall adopt

26  or maintain in effect an ordinance or a rule which has the

27  effect of imposing price controls upon a lawful business

28  activity which is not franchised by, owned by, or under

29  contract with, the governmental agency, unless specifically

30  provided by general law.

31


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                                          HB 1225, First Engrossed



  1         (b)  The provisions of this section shall not prevent

  2  the enactment by local governments of public service rates

  3  otherwise authorized by law, including water, sewer, solid

  4  waste, public transportation, taxicab, or port rates, rates

  5  for towing of vehicles from or immobilization of vehicles on

  6  private property, or rates for removal and storage of wrecked

  7  or disabled vehicles from an accident scene or the removal and

  8  storage of vehicles in the event the owner or operator is

  9  incapacitated, unavailable, leaves the procurement of wrecker

10  service to the law enforcement officer at the scene, or

11  otherwise does not consent to the removal of the vehicle.

12         (c)  Counties must establish maximum rates which may be

13  charged on the towing of vehicles from or immobilization of

14  vehicles on private property, removal and storage of wrecked

15  or disabled vehicles from an accident scene or for the removal

16  and storage of vehicles, in the event the owner or operator is

17  incapacitated, unavailable, leaves the procurement of wrecker

18  service to the law enforcement officer at the scene, or

19  otherwise does not consent to the removal of the vehicle.

20  However, if a municipality chooses to enact an ordinance

21  establishing the maximum fees for the towing or immobilization

22  of vehicles as described in paragraph (b), the county's

23  ordinance established under s. 125.0103 shall not apply within

24  such municipality.

25         (2)  No law, ordinance, rule, or other measure which

26  would have the effect of imposing controls on rents shall be

27  adopted or maintained in effect except as provided herein and

28  unless it is found and determined, as hereinafter provided,

29  that such controls are necessary and proper to eliminate an

30  existing housing emergency which is so grave as to constitute

31  a serious menace to the general public.


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                                          HB 1225, First Engrossed



  1         (3)  Any law, ordinance, rule, or other measure which

  2  has the effect of imposing controls on rents shall terminate

  3  and expire within 1 year and shall not be extended or renewed

  4  except by the adoption of a new measure meeting all the

  5  requirements of this section.

  6         (4)  Notwithstanding any other provisions of this

  7  section, no controls shall be imposed on rents for any

  8  accommodation used or offered for residential purposes as a

  9  seasonal or tourist unit, as a second housing unit, or on

10  rents for dwelling units located in luxury apartment

11  buildings.  For the purposes of this section, a luxury

12  apartment building is one wherein on January 1, 1977, the

13  aggregate rent due on a monthly basis from all dwelling units

14  as stated in leases or rent lists existing on that date

15  divided by the number of dwelling units exceeds $250.

16         (5)  No municipality, county, or other entity of local

17  government shall adopt or maintain in effect any law,

18  ordinance, rule, or other measure which would have the effect

19  of imposing controls on rents unless:

20         (a)  Such measure is duly adopted by the governing body

21  of such entity of local government, after notice and public

22  hearing, in accordance with all applicable provisions of the

23  Florida and United States Constitutions, the charter or

24  charters governing such entity of local government, this

25  section, and any other applicable laws.

26         (b)  Such governing body makes and recites in such

27  measure its findings establishing the existence in fact of a

28  housing emergency so grave as to constitute a serious menace

29  to the general public and that such controls are necessary and

30  proper to eliminate such grave housing emergency.

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                                          HB 1225, First Engrossed



  1         (c)  Such measure is approved by the voters in such

  2  municipality, county, or other entity of local government.

  3         (6)  In any court action brought to challenge the

  4  validity of rent control imposed pursuant to the provisions of

  5  this section, the evidentiary effect of any findings or

  6  recitations required by subsection (5) shall be limited to

  7  imposing upon any party challenging the validity of such

  8  measure the burden of going forward with the evidence, and the

  9  burden of proof (that is, the risk of nonpersuasion) shall

10  rest upon any party seeking to have the measure upheld.

11         (7)  Notwithstanding any other provisions of this

12  section, municipalities, counties, or other entity of local

13  government may adopt and maintain in effect any law,

14  ordinance, rule, or other measure which is adopted for the

15  purposes of increasing the supply of affordable housing using

16  land use mechanisms such as inclusionary housing ordinances.

17         Section 34.  Paragraph (b) of subsection (1) of section

18  336.025, F.S., is amended to read:

19         336.025  County transportation system; levy of local

20  option fuel tax on motor fuel and diesel fuel.--

21         (1)

22         (b)  In addition to other taxes allowed by law, there

23  may be levied as provided in s. 206.41(1)(e) a 1-cent, 2-cent,

24  3-cent, 4-cent, or 5-cent local option fuel tax upon every

25  gallon of motor fuel sold in a county and taxed under the

26  provisions of part I of chapter 206.  The tax shall be levied

27  by an ordinance adopted by a majority plus one vote of the

28  membership of the governing body of the county or by

29  referendum.

30         1.  The tax shall be levied before July 1, to be

31  effective January 1 of the following year.  However, levies of


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                                          HB 1225, First Engrossed



  1  the tax which were in effect on July 1, 1996, and which expire

  2  on August 31 of any year may be reimposed effective September

  3  1 of the year of expiration.

  4         2.  The county may, prior to levy of the tax, establish

  5  by interlocal agreement with one or more municipalities

  6  located therein, representing a majority of the population of

  7  the incorporated area within the county, a distribution

  8  formula for dividing the entire proceeds of the tax among

  9  county government and all eligible municipalities within the

10  county. If no interlocal agreement is adopted before the

11  effective date of the tax, tax revenues shall be distributed

12  pursuant to the provisions of subsection (4).  If no

13  interlocal agreement exists, a new interlocal agreement may be

14  established prior to June 1 of any year pursuant to this

15  subparagraph. However, any interlocal agreement agreed to

16  under this subparagraph after the initial levy of the tax or

17  change in the tax rate authorized in this section shall under

18  no circumstances materially or adversely affect the rights of

19  holders of outstanding bonds which are backed by taxes

20  authorized by this paragraph, and the amounts distributed to

21  the county government and each municipality shall not be

22  reduced below the amount necessary for the payment of

23  principal and interest and reserves for principal and interest

24  as required under the covenants of any bond resolution

25  outstanding on the date of establishment of the new interlocal

26  agreement.

27         3.  County and municipal governments shall utilize

28  moneys received pursuant to this paragraph only for

29  transportation expenditures needed to meet the requirements of

30  the capital improvements element of an adopted comprehensive

31  plan. For purposes of this paragraph, expenditures for the


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                                          HB 1225, First Engrossed



  1  construction of new roads, the reconstruction or resurfacing

  2  of existing paved roads, or the paving of existing graded

  3  roads when undertaken in part to relieve or mitigate existing

  4  or potential adverse environmental impacts, shall be deemed to

  5  increase capacity and such projects shall be included in the

  6  capital improvements element of an adopted comprehensive plan.

  7  Expenditures for purposes of this paragraph shall not include

  8  routine maintenance of roads.

  9         Section 35.  Except as otherwise expressly provided in

10  this act, this act shall take effect July 1, 2001.

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