Senate Bill sb0460

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2001                                   SB 460

    By Senator Clary





    7-365A-01

  1                      A bill to be entitled

  2         An act relating to rural economic development;

  3         amending s. 212.096, F.S.; defining the term

  4         "jobs"; revising the computation of the

  5         enterprise zone credit against the sales tax;

  6         amending s. 212.098, F.S.; redefining the term

  7         "eligible business"; creating s. 218.077, F.S.;

  8         providing for reduction or waiver of financial

  9         match requirements in rural areas by Rural

10         Economic Development Initiative agencies;

11         amending s. 220.181, F.S.; revising the

12         computation of the enterprise zone credit

13         against the corporation income tax; amending s.

14         288.018, F.S.; providing for the administration

15         of the Regional Rural Development Grants

16         Program; creating s. 288.019, F.S.; providing

17         for a review and evaluation process of rural

18         grants by Rural Economic Development Initiative

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

20         the scope of the Rural Community Development

21         Revolving Loan Fund Program; amending s.

22         290.004, F.S.; defining the term "rural

23         enterprise zone"; deleting obsolete

24         definitions; amending ss. 290.0055, 290.0056,

25         290.0058, F.S.; conforming references to comply

26         with previous governmental reorganization;

27         amending s. 290.0065, F.S.; providing for rural

28         enterprise zones; authorizing the Office of

29         Tourism, Trade, and Economic Development in

30         consultation with Enterprise Florida, Inc., to

31         develop guidelines for the designation of

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1         enterprise zones; creating s. 290.00676, F.S.;

  2         providing for the amendment of boundaries of

  3         rural enterprise zones; creating s. 290.00677,

  4         F.S.; revising residency requirements for rural

  5         enterprise zones; creating s. 290.00694, F.S.;

  6         providing for the designation of rural champion

  7         communities as enterprise zones; providing an

  8         effective date.

  9

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

11

12         Section 1.  Subsections (1) and (2) of section 212.096,

13  Florida Statutes, are amended to read:

14         212.096  Sales, rental, storage, use tax; enterprise

15  zone jobs credit against sales tax.--

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

17  section:

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

19  firm, partnership, corporation, bank, savings association,

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

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

22  enterprise zone. An eligible business does not include any

23  business which has claimed the credit permitted under s.

24  220.181 for any new business employee first beginning

25  employment with the business after July 1, 1995.

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

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

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

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

30  month.

31

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  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 welfare transition

  4  program participant who begins employment with an eligible

  5  business after July 1, 1995, and who has not been previously

  6  employed within the preceding 12 months by the eligible

  7  business, or a successor eligible business, claiming the

  8  credit allowed by this section.

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

10  such terms are consistent with terms used by the Department of

11  Labor and Employment Security and the United States Department

12  of Labor for purposes of unemployment compensation tax

13  administration and employment estimation, resulting directly

14  from a project in this state. This number does not include

15  temporary construction jobs involved with the construction of

16  facilities for a project or any jobs that have previously been

17  included in any application for tax refunds under s.

18  220.181(1).

19

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

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

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

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

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

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

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

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

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

29  provision of meaningful employment opportunities that which

30  will improve the quality of life of those employed and to

31  encourage economic expansion of enterprise zones and the

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1  state. Therefore, beginning July 1, 2001 1995, upon an

  2  affirmative showing by a business to the satisfaction of the

  3  department that the requirements of this section have been

  4  met, the business shall be allowed a credit against the tax

  5  remitted under this chapter.

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

  7         1.  Ten percent of the monthly wages paid in this state

  8  for to each new job created, unless the business is located in

  9  a rural enterprise zone, as defined in s. 290.004(7), in which

10  case the credit shall be 30 percent of the wages paid employee

11  whose wages do not exceed $1,500 a month. If no less than 20

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

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

14  the credit shall be 30 computed as 15 percent of the monthly

15  wages paid in this state for to each new job created, unless

16  the business is located in a rural enterprise zone, as defined

17  in s. 290.004(7), in which case the credit shall be 45 percent

18  of the wages paid. employee;

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

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

21  exceed $1,500 a month; or

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

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

24  a WAGES Program participant pursuant to chapter 414.

25

26  For purposes of this paragraph, monthly wages shall be

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

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

29  the compensation paid to such employee that is subject to

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

31

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1  consecutive months, beginning with the first tax return due

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

  3         Section 2.  Paragraph (a) of subsection (1) of section

  4  212.098, Florida Statutes, is amended to read:

  5         212.098  Rural Job Tax Credit Program.--

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

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

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

  9  qualified county and is predominantly engaged in, or is

10  headquarters for a business predominantly engaged in,

11  activities usually provided for consideration by firms

12  classified within the following standard industrial

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

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

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

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

17  golf courses); and SIC 7996 (amusement parks); and all

18  businesses eligible for the qualified target industry business

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

20  service operation that services a multistate market or an

21  international market is also an eligible business. In

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

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

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

25  from the list of standard industrial classifications used to

26  determine an eligible business, and the Legislature may

27  implement such recommendations. Excluded from eligible

28  receipts are receipts from retail sales, except such receipts

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

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

31  7996.  For purposes of this paragraph, the term

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




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

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

  3  those activities usually provided for consideration by firms

  4  in the specified standard industrial classification. The

  5  determination of whether the business is located in a

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

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

  8  section. Commonly owned and controlled entities are to be

  9  considered a single business entity.

10         Section 3.  Section 218.077, Florida Statutes, is

11  created to read:

12         218.077  Reduction or waiver of financial match

13  requirements.--Notwithstanding any other provision of law, the

14  member agencies of the Rural Economic Development Initiative

15  (REDI) as defined in s. 288.0656 shall review the financial

16  match requirements for projects in rural areas as defined in

17  s. 288.0656.

18         (1)  Each agency shall develop a proposal to waive or

19  reduce the match requirement for rural areas.

20         (2)  Agencies shall ensure that all proposed rules are

21  submitted to the Office of Tourism, Trade, and Economic

22  Development for review by the REDI agencies.

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

24  of Tourism, Trade, and Economic Development for distribution

25  to the REDI agencies. A meeting of REDI agencies must be

26  called within 30 days after receipt of such proposals for REDI

27  comment and recommendations on each proposal.

28         (4)  Waivers and reduction must at least be

29  proportionate to the fiscal hardship of the county or

30  community.

31

                                  6

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




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

  2  used for financial match of federal programs when there is

  3  fiscal hardship and the match may not be waived or reduced.

  4         (6)  When match requirements are not reduced or

  5  eliminated, donations of land, though usually not recognized

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

  7         (7)  To the fullest extend possible agencies shall

  8  expedite the rule adoption and amendment process if necessary

  9  to incorporate the reduction in match by rural areas in fiscal

10  distress.

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

12  evaluation on the status of changes to rules, the number of

13  awards made with waivers, and any recommendations for future

14  changes.

15         Section 4.  Paragraph (a) of subsection (1), paragraph

16  (a) of subsection (2), and subsection (7) of section 220.181,

17  Florida Statutes, are amended to read:

18         220.181  Enterprise zone jobs credit.--

19         (1)(a)  Beginning July 1, 2001 1995, there shall be

20  allowed a credit against the tax imposed by this chapter to

21  any business located in an enterprise zone which employs one

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

23  follows:

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

25  in this state for to each new job created, unless the business

26  is located in a rural enterprise zone, as defined in s.

27  290.004(7), in which case the credit shall be 30 percent of

28  the wages paid employee whose wages do not exceed $1,500 a

29  month. If no less than 20 percent of the employees of the

30  business are residents of an enterprise zone, excluding

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

                                  7

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1  computed as 30 15 percent of the actual monthly wages paid,

  2  unless the business is located in a rural enterprise zone, as

  3  defined in s. 290.004(7), in which case the credit shall be 45

  4  percent of the wages paid in this state for to each new job

  5  employee, for a period of up to 12 consecutive months;

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

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

  8  exceed $1,500 a month; or

  9         2.3.  Fifteen percent of the first $1,500 of actual

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

11  a welfare transition program participant.

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

13  business must file under oath with the governing body or

14  enterprise zone development agency having jurisdiction over

15  the enterprise zone where the business is located, as

16  applicable, a statement which includes:

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

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

19  taxable year, including the identifying number assigned

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

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

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

23  the employee is a qualified Job Training Partnership Act

24  classroom training participant or a welfare transition program

25  participant.

26         (7)  Any business that which has claimed this credit is

27  shall not be allowed any credit under the provision of s.

28  212.096 for any new job employee beginning employment after

29  July 1, 2001 1995. The provisions of This subsection does

30  shall not apply when a corporation converts to an S

31  corporation for purposes of compliance with the Internal

                                  8

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1  Revenue Code of 1986, as amended; however, no corporation

  2  shall be allowed the benefit of this credit and the credit

  3  under s. 212.096 either for the same new employee or for the

  4  same taxable year. In addition, such a corporation shall not

  5  be allowed any credit under s. 212.096 until it has filed

  6  notice of its intent to change its status for tax purposes and

  7  until its final return under this chapter for the taxable year

  8  prior to such change has been filed.

  9         Section 5.  Subsection (3) of section 288.018, Florida

10  Statutes, is amended to read:

11         288.018  Regional Rural Development Grants Program.--

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

13  Development may expend up to $600,000 each fiscal year from

14  funds appropriated to the Rural Community Development

15  Revolving Loan Fund for the purposes outlined in this section.

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

17  contract with Enterprise Florida, Inc., for the administration

18  of the purposes specified in this section. Funds released to

19  Enterprise Florida, Inc., for this purpose must be released

20  quarterly and must be calculated based on the applications in

21  process.

22         Section 6.  Section 288.019, Florida Statutes, is

23  created to read:

24         288.019  Rural considerations in grant review and

25  evaluation processes.--Notwithstanding any other provision of

26  law, and to the fullest extent possible, the member agencies

27  of the Rural Economic Development Initiative (REDI) as defined

28  in s. 288.0656 shall review all grant and loan application

29  evaluation criteria to ensure the fullest access for rural

30  counties to resources available throughout the state.

31

                                  9

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1         (1)  Each REDI agency shall review all evaluation and

  2  scoring procedures and develop modifications to those

  3  procedures which minimize the impact of a project within a

  4  rural area.

  5         (2)  Evaluation criteria and scoring procedures must

  6  provide for an appropriate ranking based on the proportionate

  7  impact of projects on a rural area when compared with similar

  8  project impacts on an urban area.

  9         (3)  Evaluation criteria and scoring procedures must

10  recognize the disparity of participation for an equal level of

11  financial support from an urban county and a rural county.

12         (a)  The evaluation criteria should weigh contribution

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

14  level.

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

16  financial match for a county that is experiencing financial

17  distress because of elevated unemployment at a rate that

18  exceeds the state's average by 5 percentage points or because

19  of the loss of its ad valorem base.

20         (4)  For existing programs, the modified evaluation

21  criteria and scoring procedure must be delivered to the Office

22  of Tourism, Trade, and Economic Development for distribution

23  to the REDI agencies. The REDI agencies shall review and make

24  comments. Future rules, programs, evaluation criteria, and

25  scoring processes must be brought before a REDI meeting for

26  review, discussion, and recommendation to allow rural counties

27  fuller access to the state's resources.

28         Section 7.  Subsection (2) of section 288.065, Florida

29  Statutes, is amended to read:

30         288.065  Rural Community Development Revolving Loan

31  Fund.--

                                  10

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




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

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

  3  governments or economic development organizations

  4  substantially underwritten by a unit of local government

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

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

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

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

  9  186.901, residing in incorporated and unincorporated areas of

10  the county. Requests for loans shall be made by application to

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

12  shall be made pursuant to agreements specifying the terms and

13  conditions agreed to between the applicant local government

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

15  The loans shall be the legal obligations of the applicant

16  local government. All repayments of principal and interest

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

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

19  critical economic concern designated by the Governor, and upon

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

21  Development, repayments of principal and interest may be

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

23  repayments are dedicated and matched to fund regionally based

24  economic development organizations representing the rural area

25  of critical economic concern.

26         Section 8.  Section 290.004, Florida Statutes, is

27  amended to read:

28         290.004  Definitions relating to Florida Enterprise

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

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

31  business investment corporation, a certified development

                                  11

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1  corporation, a small business investment corporation, or other

  2  similar entity incorporated under Florida law that has limited

  3  its investment policy to making investments solely in minority

  4  business enterprises.

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

  6         (2)(3)  "Director" means the director of the Office of

  7  Tourism, Trade, and Economic Development.

  8         (3)(4)  "Governing body" means the council or other

  9  legislative body charged with governing the county or

10  municipality.

11         (4)(5)  "Interagency coordinating council" means the

12  Enterprise Zone Interagency Coordinating Council created

13  pursuant to s. 290.009.

14         (5)(6)  "Minority business enterprise" has the same

15  meaning as in s. 288.703.

16         (6)(7)  "Office" means the Office of Tourism, Trade,

17  and Economic Development.

18         (7)  "Rural enterprise zone" means an enterprise zone

19  that is nominated by a county having a population of 75,000 or

20  fewer, or a county having a population of 100,000 or fewer

21  which is contiguous to a county having a population of 75,000

22  or fewer, or by a municipality in such a county, or by such a

23  county and one or more municipalities. An enterprise zone

24  designated in accordance with s. 370.28 or s. 290.0065(5)(b)

25  is considered to be a rural enterprise zone.

26         (8)  "Secretary" means the Secretary of Commerce.

27         (9)  "Small business" has the same meaning as in s.

28  288.703.

29         Section 9.  Subsections (1) and (6) of section

30  290.0055, Florida Statutes, are amended to read:

31         290.0055  Local nominating procedure.--

                                  12

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1         (1)  Any county or municipality, or a county and one or

  2  more municipalities together, may apply to the Office of

  3  Tourism, Trade, and Economic Development department for the

  4  designation of an area as an enterprise zone after completion

  5  of the following:

  6         (a)  The adoption by the governing body or bodies of a

  7  resolution which:

  8         1.  Finds that an area exists in such county or

  9  municipality, or in both the county and one or more

10  municipalities, which chronically exhibits extreme and

11  unacceptable levels of poverty, unemployment, physical

12  deterioration, and economic disinvestment;

13         2.  Determines that the rehabilitation, conservation,

14  or redevelopment, or a combination thereof, of such area is

15  necessary in the interest of the public health, safety, and

16  welfare of the residents of such county or municipality, or

17  such county and one or more municipalities; and

18         3.  Determines that the revitalization of such area can

19  occur only if the private sector can be induced to invest its

20  own resources in productive enterprises that build or rebuild

21  the economic viability of the area.

22         (b)  The creation of an enterprise zone development

23  agency pursuant to s. 290.0056.

24         (c)  The creation and adoption of a strategic plan

25  pursuant to s. 290.0057.

26         (6)(a)  The office department may approve a change in

27  the boundary of any enterprise zone which was designated

28  pursuant to s. 290.0065 on or before July 1, 1995, if such

29  change is limited to a deletion of area from the enterprise

30  zone and if, after the change is made, the enterprise zone

31

                                  13

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1  continues to satisfy the requirements of subsections (3), (4),

  2  and (5).

  3         (b)  The governing body of the jurisdiction which

  4  authorized the application for an enterprise zone may apply

  5  for a change in boundary by adopting a resolution that:

  6         1.  States with particularity the reasons for the

  7  change; and

  8         2.  Describes specifically and, to the extent required

  9  by the office department, the boundary change to be made.

10         (c)  All applications for boundary changes must be

11  submitted to the department by April 1, 1997.  Any boundary

12  changes approved shall be effective July 1, 1997.

13         Section 10.  Subsection (12) of section 290.0056,

14  Florida Statutes, is amended to read:

15         290.0056  Enterprise zone development agency.--

16         (12)  If In the event that the nominated area selected

17  by the governing body is not designated a state enterprise

18  zone, the governing body may dissolve the agency after

19  receiving notification from the department or the office that

20  the area was not designated as an enterprise zone.

21         Section 11.  Subsections (1) and (5) of section

22  290.0058, Florida Statutes, are amended to read:

23         290.0058  Tests of pervasive poverty, unemployment, and

24  general distress.--

25         (1)  In determining whether an area suffers from

26  pervasive poverty, unemployment, and general distress, for

27  purposes of ss. 290.0055 and 290.0065, the governing body and

28  the office department shall use data from the most current

29  decennial census, and from information published by the Bureau

30  of the Census and the Bureau of Labor Statistics. The data

31

                                  14

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1  shall be comparable in point or period of time and methodology

  2  employed.

  3         (5)  In making the calculations required by this

  4  section, the local government and the office department shall

  5  round all fractional percentages of one-half percent or more

  6  up to the next highest whole percentage figure.

  7         Section 12.  Subsections (1), (4), (5), (6), (7), and

  8  (9) of section 290.0065, Florida Statutes, are amended to

  9  read:

10         290.0065  State designation of enterprise zones.--

11         (1)  Upon application of the governing body of a county

12  or municipality or of a county and one or more municipalities

13  jointly pursuant to s. 290.0055, Enterprise Florida, Inc., and

14  the office department, in consultation with the interagency

15  coordinating council, shall determine which areas nominated by

16  such governing bodies meet the criteria outlined in s.

17  290.0055 and are the most appropriate for designation as state

18  enterprise zones. The office department is authorized to

19  designate up to 5 areas within each of the categories

20  established in subparagraphs (3)(a)1., 2., 3., 4., and 5.,

21  except that the office department may only designate a total

22  of 20 areas as enterprise zones. The office department shall

23  not designate more than three enterprise zones in any one

24  county. All designations, including any provision for

25  redesignations, of state enterprise zones pursuant to this

26  section shall be effective July 1, 1995.

27         (4)(a)  Notwithstanding s. 290.0055, any area existing

28  as a state enterprise zone as of the effective date of this

29  section and originally approved through a joint application

30  from a county and municipality, or through an application from

31  a county as defined in s. 125.011(1), shall be redesignated as

                                  15

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1  a state enterprise zone upon the creation of an enterprise

  2  zone development agency pursuant to s. 290.0056 and the

  3  completion of a strategic plan pursuant to s. 290.0057.  Any

  4  area redesignated pursuant to this subsection, other than an

  5  area located in a county defined in s. 125.011(1), may be

  6  relocated or modified by the appropriate governmental bodies.

  7  Such relocation or modification shall be identified in the

  8  strategic plan and shall meet the requirements for designation

  9  as established by s. 290.005. Any relocation or modification

10  shall be submitted on or before June 1, 1996.

11         (b)  The office department shall place any area

12  designated as a state enterprise zone pursuant to this

13  subsection in the appropriate category established in

14  subsection (3), and include such designations within the

15  limitations on state enterprise zone designations set out in

16  subsection (1).

17         (c)  Any county or municipality having jurisdiction

18  over an area designated as a state enterprise zone pursuant to

19  this subsection, other than a county defined by s. 125.011(1),

20  may not apply for designation of another area.

21         (5)  Notwithstanding s. 290.0055, an area designated as

22  a federal empowerment zone or enterprise community pursuant to

23  Title XIII of the Omnibus Budget Reconciliation Act of 1993,

24  the Taxpayer Relief Act of 1997, or the 1999 Agricultural

25  Appropriations Act shall be designated a state enterprise zone

26  as follows:

27         (a)  An area designated as an urban empowerment zone or

28  urban enterprise community pursuant to Title XIII of the

29  Omnibus Budget Reconciliation Act of 1993 or the Taxpayer

30  Relief Act of 1997 shall be designated a state enterprise zone

31  by the office department upon completion of the requirements

                                  16

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1  set out in paragraph (d), except in the case of a county as

  2  defined in s. 125.011(1) which, notwithstanding s. 290.0055,

  3  may incorporate and include such designated urban empowerment

  4  zone or urban enterprise community areas within the boundaries

  5  of its state enterprise zones without any limitation as to

  6  size.

  7         (b)  An area designated as a rural empowerment zone or

  8  rural enterprise community pursuant to Title XIII of the

  9  Omnibus Budget Reconciliation Act of 1993 or the 1999

10  Agricultural Appropriations Act shall be designated a state

11  rural enterprise zone by the office department upon completion

12  of the requirements set out in paragraph (d) and may

13  incorporate and include such designated rural empowerment zone

14  or rural enterprise community within the boundaries of its

15  state enterprise zones without any limitation as to size.

16         (c)  Any county or municipality having jurisdiction

17  over an area designated as a state enterprise zone pursuant to

18  this subsection, other than a county defined in s. 125.011(1),

19  may not apply for designation of another area.

20         (d)  Prior to designating such areas as state

21  enterprise zones, the office department shall ensure that the

22  governing body having jurisdiction over the zone submits the

23  strategic plan required pursuant to 7 C.F.R. part 25 or 24

24  C.F.R. part 597 to the office department, and creates an

25  enterprise zone development agency pursuant to s. 290.0056.

26         (e)  The office department shall place any area

27  designated as a state enterprise zone pursuant to this

28  subsection in the appropriate category established in

29  subsection (3), and include such designations within the

30  limitations on state enterprise zone designations set out in

31  subsection (1).

                                  17

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1         (6)(a)  The office department, in consultation with

  2  Enterprise Florida, Inc., and the interagency coordinating

  3  council, may develop guidelines shall promulgate any rules

  4  necessary for the approval of areas under this section by the

  5  director secretary.

  6         (b)  The guidelines must Such rules shall provide for

  7  the measurement of pervasive poverty, unemployment, and

  8  general distress using the criteria outlined by s. 290.0058.

  9         (c)  The guidelines must Such rules shall provide for

10  the evaluation of the strategic plan and local fiscal and

11  regulatory incentives for effectiveness, including how the

12  following key principles will be implemented by the governing

13  body or bodies:

14         1.  Economic opportunity, including job creation within

15  the community and throughout the region, as well as

16  entrepreneurial initiatives, small business expansion, and

17  training for jobs that offer upward mobility.

18         2.  Sustainable community development that advances the

19  creation of livable and vibrant communities through

20  comprehensive approaches that coordinate economic, physical,

21  community, and human development.

22         3.  Community-based partnerships involving the

23  participation of all segments of the community.

24         4.  Strategic vision for change that identifies how the

25  community will be revitalized. This vision should include

26  methods for building on community assets and coordinate a

27  response to community needs in a comprehensive fashion. This

28  vision should provide goals and performance benchmarks for

29  measuring progress and establish a framework for evaluating

30  and adjusting the strategic plan.

31

                                  18

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1         5.  Local fiscal and regulatory incentives enacted

  2  pursuant to s. 290.0057(1)(e). These incentives should induce

  3  economic revitalization, including job creation and small

  4  business expansion.

  5         (d)  The guidelines may Such rules shall provide

  6  methods for evaluating the prospects for new investment and

  7  economic development in the area, including a review and

  8  evaluation of any previous state enterprise zones located in

  9  the area.

10         (7)  Upon approval by the director secretary of a

11  resolution authorizing an area to be an enterprise zone

12  pursuant to this section, the office department shall assign a

13  unique identifying number to that resolution. The office

14  department shall provide the Department of Revenue and

15  Enterprise Florida, Inc., with a copy of each resolution

16  approved, together with its identifying number.

17         (9)  Upon recommendation by Enterprise Florida, Inc.,

18  the Office of Tourism, Trade, and Economic Development may

19  amend the boundaries of any enterprise zone designated by the

20  state pursuant to this section, consistent with the

21  categories, criteria, and limitations imposed in this section

22  upon the establishment of such enterprise zone and only if

23  consistent with the determinations made in s. 290.0058(2).

24         Section 13.  Section 290.00676, Florida Statutes, is

25  created to read:

26         290.00676  Amendment of rural enterprise zone

27  boundaries.--Notwithstanding any other provision of law, upon

28  recommendation by Enterprise Florida, Inc., the Office of

29  Tourism, Trade, and Economic Development may approve a request

30  to amend the boundaries of rural enterprise zones. For

31  purposes of boundary amendments, an enterprise zone designated

                                  19

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1  under s. 370.28 is considered a rural enterprise zone and is

  2  eligible for amendment of its boundaries. Boundary amendments

  3  authorized by this section are subject to the following

  4  requirements:

  5         (1)  The amendment may increase the size of the rural

  6  enterprise zone to 20 square miles.

  7         (2)  The amendment may increase the number of

  8  noncontiguous areas by one, if that noncontiguous area has

  9  zero population. For purposes of this subsection, the

10  pervasive poverty criteria may be set aside for the addition

11  of a noncontiguous parcel.

12         (3)  The local enterprise zone development agency must

13  request the amendment from Enterprise Florida, Inc., before

14  December 30, 2001. The request must contain maps and

15  sufficient information to allow the office to determine the

16  number of noncontiguous areas and the total size of the rural

17  enterprise zone.

18         Section 14.  Section 290.00677, Florida Statutes, is

19  created to read:

20         290.00677  Rural enterprise zones; special

21  qualifications.--

22         (1)  Notwithstanding the enterprise zone residency

23  requirements set out in ss. 212.096(1)(c) and 220.03(1)(g),

24  businesses located in rural enterprise zones may receive the

25  credit provided under s. 212.096 or s. 220.181 for hiring any

26  person within the jurisdiction of a rural county, as defined

27  by s. 288.106(1)(r).  All other provisions of ss. 212.096,

28  220.03(1)(q), and 220.181 apply to such businesses.

29         (2)  Notwithstanding the requirement specified in ss.

30  212.08(5)(g)5., (5)(h)5., and (15)(a), 212.096(2)(b)1.,

31  220.181(1)(a)1., and 220.182(1)(b) that at least 20 percent of

                                  20

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1  a business's employees, excluding temporary and part-time

  2  employees, must be residents of an enterprise zone for the

  3  business to qualify for the maximum exemption or credit

  4  provided in ss. 212.08(5)(g) and (h) and (15),

  5  212.096(2)(b)1., 220.181(1)(a)1., and 220.182, a business that

  6  is located in a rural enterprise zone is qualified for those

  7  maximum exemptions or credits if at least 20 percent of such

  8  employees of the business are residents of a rural enterprise

  9  zone as defined by s. 290.004(7). All other provisions of ss.

10  212.08(5)(g) and (h) and (15), 212.096, 220.181, and 220.182

11  apply to such business.

12         Section 15.  Section 290.00694, Florida Statutes, is

13  created to read:

14         290.00694  Enterprise zone designation for rural

15  champion communities.--An area designated as a rural champion

16  community under the Taxpayer Relief Act of 1997 may apply to

17  Enterprise Florida, Inc., for designation as an enterprise

18  zone. The application must be submitted by December 31, 2001.

19  Notwithstanding the provisions of s. 290.0065 limiting the

20  total number of enterprise zones designated and the number of

21  enterprise zones within a population category, the Office of

22  Tourism, Trade, and Economic Development may designate

23  enterprise zones under this section. The Office of Tourism,

24  Trade, and Economic Development shall establish the initial

25  effective date of the enterprise zones designated under this

26  section.

27         Section 16.  This act shall take effect July 1, 2001.

28

29

30

31

                                  21

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2001                                   SB 460
    7-365A-01




  1            *****************************************

  2                          SENATE SUMMARY

  3    Provides a process for the designation of rural
      enterprise zones by the Office of Tourism, Trade, and
  4    Economic Development and Enterprise Florida, Inc. Revises
      enterprise zone tax credits.
  5

  6

  7

  8

  9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  22

CODING: Words stricken are deletions; words underlined are additions.