Senate Bill sb0460c1

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    Florida Senate - 2001                            CS for SB 460

    By the Committee on Commerce and Economic Opportunities; and
    Senators Clary, Smith and Mitchell




    310-1639-01

  1                      A bill to be entitled

  2         An act relating to economic development;

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

  4         procedures and conditions relating to the sales

  5         tax exemption for enterprise-zone building

  6         materials and business property; extending the

  7         community contribution tax credit provisions of

  8         the enterprise zone program to the state sales

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

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

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

12         created"; revising the computation procedures

13         of the enterprise-zone jobs credit against

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

15         redefining the term "eligible business";

16         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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  1         credit program; increasing the limitation on

  2         annual credits; amending s. 288.018, F.S.;

  3         revising administration and uses of the

  4         Regional Rural Development Grants Program;

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

  6         review and evaluation process of rural grants

  7         by Rural Economic Development Initiative

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

  9         the scope of the Rural Community Revolving Loan

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

11         revising the membership of the Rural Economic

12         Development Initiative; requiring an annual

13         designation of staff representatives; amending

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

15         the Quick Action Closing Fund; amending s.

16         288.9015, F.S.; revising the duties of

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

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

19         zone"; authorizing the Office of Tourism,

20         Trade, and Economic Development to designate an

21         enterprise zone in Sarasota County; providing

22         requirements with respect thereto; amending s.

23         290.00555, F.S.; removing the December 31,

24         1999, deadline for creation of satellite

25         enterprise zones by certain municipalities and

26         authorizing creation of such zones effective

27         retroactively to that date; providing duties of

28         the Office of Tourism, Trade, and Economic

29         Development; providing an application deadline

30         for businesses in such zones eligible for

31         certain sales and use tax incentives; amending

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

  2         enterprise zones; conforming agency references

  3         to changes in program administration;

  4         authorizing the Office of Tourism, Trade, and

  5         Economic Development in consultation with

  6         Enterprise Florida, Inc., to develop guidelines

  7         relating to the designation of enterprise

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

  9         the Office of Tourism, Trade, and Economic

10         Development to amend the boundaries of a rural

11         enterprise zone and providing requirements with

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

13         modifying the employee residency requirements

14         for the enterprise-zone job credit against the

15         sales tax and corporate income tax if the

16         business is located in a rural enterprise zone;

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

18         Office of Tourism, Trade, and Economic

19         Development to designate rural champion

20         communities as enterprise zones; providing

21         requirements with respect thereto; amending s.

22         290.007, F.S.; revising the list of enterprise

23         zone incentives to reflect the creation of a

24         community contribution sales tax credit

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

26         the Department of Community Affairs to

27         establish advisory committees and solicit

28         participation with respect to administering the

29         Florida Small Cities Community Development

30         Block Grant Program; repealing s. 290.049,

31         F.S., relating to the Community Development

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    Florida Senate - 2001                            CS for SB 460
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  1         Block Grant Advisory Council; repealing s.

  2         370.28(4), F.S., which provides conditions for

  3         tax incentives in enterprise zone net-ban

  4         communities; amending s. 420.507, F.S.;

  5         authorizing the Florida Housing Finance

  6         Corporation to create a recognition program to

  7         support affordable housing; amending s.

  8         624.5105, F.S.; increasing the annual

  9         limitation on community contribution tax

10         credits; conforming definitions; revising

11         eligibility and administrative requirements;

12         providing effective dates.

13

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

15

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

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

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

19         212.08  Sales, rental, use, consumption, distribution,

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

21  the rental, the use, the consumption, the distribution, and

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

23  following are hereby specifically exempt from the tax imposed

24  by this chapter.

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

26         (g)  Building materials used in the rehabilitation of

27  real property located in an enterprise zone.--

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

29  the rehabilitation of real property located in an enterprise

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

31  an affirmative showing to the satisfaction of the department

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    Florida Senate - 2001                            CS for SB 460
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  1  that the items have been used for the rehabilitation of real

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

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

  4  or lessor of the rehabilitated real property located in an

  5  enterprise zone only through a refund of previously paid

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

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

  8  located in an enterprise zone must file an application under

  9  oath with the governing body or enterprise zone development

10  agency having jurisdiction over the enterprise zone where the

11  business is located, as applicable, which includes:

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

13  refund.

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

15  rehabilitated real property in an enterprise zone for which a

16  refund of previously paid taxes is being sought.

17         c.  A description of the improvements made to

18  accomplish the rehabilitation of the real property.

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

20  rehabilitation of the real property.

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

22  from the general contractor licensed in this state with whom

23  the applicant contracted to make the improvements necessary to

24  accomplish the rehabilitation of the real property, which

25  statement lists the building materials used in the

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

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

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

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

30  information in a sworn statement, under the penalty of

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

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    Florida Senate - 2001                            CS for SB 460
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  1  the building materials used in such rehabilitation and the

  2  payment of sales tax on the building materials shall be

  3  attached to the sworn statement provided by the general

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

  5  building materials used in the rehabilitation of real property

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

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

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

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

10  purposes.

11         f.  The identifying number assigned pursuant to s.

12  290.0065 to the enterprise zone in which the rehabilitated

13  real property is located.

14         g.  A certification by the local building code

15  inspector that the improvements necessary to accomplish the

16  rehabilitation of the real property are substantially

17  completed.

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

19  by s. 288.703(1).

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

21  permanent employee of the business, including, for each

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

23  identifying number assigned pursuant to s. 290.0065 to the

24  enterprise zone in which the employee resides.

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

26  governmental agency, or nonprofit community-based organization

27  through a refund of previously paid taxes if the building

28  materials used in the rehabilitation of real property located

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

30  community development block grant, State Housing Initiatives

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

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

  2  or other governmental agency, or nonprofit community-based

  3  organization must file an application which includes the same

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

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

  6  addition, the application must include a sworn statement

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

  8  other governmental agency, or nonprofit community-based

  9  organization seeking a refund which states that the building

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

11  funds of a community development block grant, State Housing

12  Initiatives Partnership Program, or similar grant or loan

13  program.

14         3.  Within 10 working days after receipt of an

15  application, the governing body or enterprise zone development

16  agency shall review the application to determine if it

17  contains all the information required pursuant to subparagraph

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

19  paragraph. The governing body or agency shall certify all

20  applications that contain the information required pursuant to

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

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

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

24  20 percent of the employees of the business are residents of

25  an enterprise zone, excluding temporary and part-time

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

27  of the certification shall be transmitted to the executive

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

29  responsible for forwarding a certified application to the

30  department within the time specified in subparagraph 4.

31

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  1         4.  An application for a refund pursuant to this

  2  paragraph must be submitted to the department within 6 months

  3  after the rehabilitation of the property is deemed to be

  4  substantially completed by the local building code inspector

  5  or within 90 days after the rehabilitated property is first

  6  subject to assessment.

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

  8  refund application made pursuant to this paragraph. No more

  9  than one exemption through a refund of previously paid taxes

10  for the rehabilitation of real property shall be permitted for

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

12  pursuant to this paragraph unless the amount to be refunded

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

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

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

16  rehabilitation of the real property as determined pursuant to

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

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

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

20  the amount of refund granted pursuant to this paragraph shall

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

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

23  approved pursuant to this paragraph shall be made within 30

24  days of formal approval by the department of the application

25  for the refund.

26         6.  The department shall adopt rules governing the

27  manner and form of refund applications and may establish

28  guidelines as to the requisites for an affirmative showing of

29  qualification for exemption under this paragraph.

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

31  percent of each refund granted under the provisions of this

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  1  paragraph from the amount transferred into the Local

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

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

  4  property is located and shall transfer that amount to the

  5  General Revenue Fund.

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

  7  paragraph:

  8         a.  "Building materials" means tangible personal

  9  property which becomes a component part of improvements to

10  real property.

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

12  s. 192.001(12).

13         c.  "Rehabilitation of real property" means the

14  reconstruction, renovation, restoration, rehabilitation,

15  construction, or expansion of improvements to real property.

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

17  provided in s. 192.042(1).

18         9.  The provisions of this paragraph shall expire and

19  be void on December 31, 2005.

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

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

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

23  subsequently used in an enterprise zone shall be exempt from

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

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

26  refund shall be authorized upon an affirmative showing by the

27  taxpayer to the satisfaction of the department that the

28  requirements of this paragraph have been met.

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

30  oath with the governing body or enterprise zone development

31  agency having jurisdiction over the enterprise zone where the

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  1  business is located, as applicable, an application which

  2  includes:

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

  4  refund.

  5         b.  The identifying number assigned pursuant to s.

  6  290.0065 to the enterprise zone in which the business is

  7  located.

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

  9  refund is sought, including its serial number or other

10  permanent identification number.

11         d.  The location of the property.

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

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

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

15  from whom the property was purchased.

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

17  by s. 288.703(1).

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

19  permanent employee of the business, including, for each

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

21  identifying number assigned pursuant to s. 290.0065 to the

22  enterprise zone in which the employee resides.

23         3.  Within 10 working days after receipt of an

24  application, the governing body or enterprise zone development

25  agency shall review the application to determine if it

26  contains all the information required pursuant to subparagraph

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

28  governing body or agency shall certify all applications that

29  contain the information required pursuant to subparagraph 2.

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

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

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

  2  business are residents of an enterprise zone, excluding

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

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

  5  transmitted to the executive director of the Department of

  6  Revenue. The business shall be responsible for forwarding a

  7  certified application to the department within the time

  8  specified in subparagraph 4.

  9         4.  An application for a refund pursuant to this

10  paragraph must be submitted to the department within 6 months

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

12  purchased.

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

14  refund application made pursuant to this paragraph. The amount

15  refunded on purchases of business property under this

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

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

18  20 percent of the employees of the business are residents of

19  an enterprise zone, excluding temporary and part-time

20  employees, the amount refunded on purchases of business

21  property under this paragraph shall be the lesser of 97

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

23  $10,000. A refund approved pursuant to this paragraph shall be

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

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

26  under this paragraph unless the amount to be refunded exceeds

27  $100 in sales tax paid on purchases made within a 60-day time

28  period.

29         6.  The department shall adopt rules governing the

30  manner and form of refund applications and may establish

31

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  1  guidelines as to the requisites for an affirmative showing of

  2  qualification for exemption under this paragraph.

  3         7.  If the department determines that the business

  4  property is used outside an enterprise zone within 3 years

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

  6  business purchasing such business property shall immediately

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

  8  with the appropriate interest and penalty, computed from the

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

10  Notwithstanding this subparagraph, business property used

11  exclusively in:

12         a.  Licensed commercial fishing vessels,

13         b.  Fishing guide boats, or

14         c.  Ecotourism guide boats

15

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

17  designated under s. 370.28 are eligible for the exemption

18  provided under this paragraph if all requirements of this

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

20  business that is eligible to receive the exemption provided

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

22  purchase of a vessel or boat.

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

24  percent of each refund granted under the provisions of this

25  paragraph from the amount transferred into the Local

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

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

28  is located and shall transfer that amount to the General

29  Revenue Fund.

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

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

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

  2  as amended, except:

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

  4  168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;

  5         b.  Industrial machinery and equipment as defined in

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

  7  paragraph (b); and

  8         c.  Building materials as defined in sub-subparagraph

  9  (g)8.a.; and

10         d.  Business property having a sales price of under

11  $500 per unit.

12         10.  The provisions of this paragraph shall expire and

13  be void on December 31, 2005.

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

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

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

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

18  sponsors are eligible for tax credits against their state

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

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

21  person's approved annual community contribution;

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

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

24  the 12 months preceding the date of application to the

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

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

27  because of insufficient tax payments during the applicable

28  12-month period, the unused amount may be included in an

29  application for a refund made pursuant to sub-subparagraph

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

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

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  1  period without regard to any time limitation that would

  2  otherwise apply under s. 215.26;

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

  4  annual tax credits for all approved community contributions

  5  made in any one year;

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

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

  8  Trade, and Economic Development;

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

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

11  220.183, and s. 624.5105 is $20 million annually; and

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

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

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

15  choice.

16         2.  Eligibility requirements.--

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

18  following form:

19         (I)  Cash or other liquid assets;

20         (II)  Real property;

21         (III)  Goods or inventory; or

22         (IV)  Other physical resources as identified by the

23  Office of Tourism, Trade, and Economic Development.

24         b.  All community contributions must be reserved

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

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

27  undertaken by an eligible sponsor which is designed to

28  construct, improve, or substantially rehabilitate housing that

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

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

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

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  1  designed to improve entrepreneurial and job-development

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

  3  investment necessary to increase access to high-speed

  4  broadband capability in rural communities with enterprise

  5  zones, including projects that result in improvements to

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

  7  may include the provision of museum educational programs and

  8  materials that are directly related to any project approved

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

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

11  paragraph does not preclude projects that propose to construct

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

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

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

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

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

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

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

19  very-low-income housing-related activities:

20         (I)  Project development impact and management fees for

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

22         (II)  Down payment and closing costs for eligible

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

24         (III)  Administrative costs, including housing

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

26  community contribution, directly related to low-income or

27  very-low-income projects; and

28         (IV)  Removal of liens recorded against residential

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

30  governments when satisfaction of the lien is a necessary

31  precedent to the transfer of the property to an eligible

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

  2  purpose of promoting home ownership. Contributions for lien

  3  removal must be received from a nonrelated third party.

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

  5  sponsor," which includes:

  6         (I)  A community action program;

  7         (II)  A nonprofit community-based development

  8  organization whose mission is the provision of housing for

  9  low-income or very-low-income households or increasing

10  entrepreneurial and job-development opportunities for

11  low-income persons;

12         (III)  A neighborhood housing services corporation;

13         (IV)  A local housing authority created under chapter

14  421;

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

16  163.356;

17         (VI)  The Florida Industrial Development Corporation;

18         (VII)  An historic preservation district agency or

19  organization;

20         (VIII)  A regional workforce board;

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

22  240.551;

23         (X)  An enterprise zone development agency created

24  under s. 290.0056;

25         (XI)  A community-based organization incorporated under

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

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

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

29  affordable housing, economic development, or community

30  development as the primary mission of the corporation;

31         (XII)  Units of local government;

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  1         (XIII)  Units of state government; or

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

  3  Trade, and Economic Development designates by rule.

  4

  5  In no event may a contributing person have a financial

  6  interest in the eligible sponsor.

  7         d.  The project must be located in an area designated

  8  an enterprise zone or a Front Porch Florida community pursuant

  9  to s. 14.2015(9)(b), unless the project increases access to

10  high-speed broadband capability for rural communities with

11  enterprise zones but is physically located outside the

12  designated rural zone boundaries. Any project designed to

13  construct or rehabilitate housing for low-income or

14  very-low-income households as defined in s. 420.0971(19) and

15  (28) is exempt from the area requirement of this

16  sub-subparagraph.

17         3.  Application requirements.--

18         a.  Any eligible sponsor seeking to participate in this

19  program must submit a proposal to the Office of Tourism,

20  Trade, and Economic Development which sets forth the name of

21  the sponsor, a description of the project and the area in

22  which the project is located, together with such supporting

23  information as is prescribed by rule. The proposal must also

24  contain a resolution from the local governmental unit in which

25  the project is located certifying that the project is

26  consistent with local plans and regulations.

27         b.  Any person seeking to participate in this program

28  must submit an application for tax credit to the Office of

29  Tourism, Trade, and Economic Development which sets forth the

30  name of the sponsor, a description of the project, and the

31  type, value, and purpose of the contribution. The sponsor

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  1  shall verify the terms of the application and indicate its

  2  receipt of the contribution, which verification must be in

  3  writing and accompany the application for tax credit. The

  4  person must submit a separate tax credit application to the

  5  office for each individual contribution that it makes to each

  6  individual project.

  7         c.  Any person who has received notification from the

  8  Office of Tourism, Trade, and Economic Development that a tax

  9  credit has been approved must apply to the department to

10  receive the refund. Application must be made on the form

11  prescribed for claiming refunds of sales and use taxes and be

12  accompanied by a copy of the notification. A person may submit

13  only one application for refund to the department within any

14  12-month period.

15         4.  Administration.--

16         a.  The Office of Tourism, Trade, and Economic

17  Development may adopt rules pursuant to ss. 120.536(1) and

18  120.54 necessary to administer this paragraph, including rules

19  for the approval or disapproval of proposals by a person.

20         b.  The decision of the Office of Tourism, Trade, and

21  Economic Development must be in writing, and, if approved, the

22  notification shall state the maximum credit allowable to the

23  person. Upon approval, the office shall transmit a copy of the

24  decision to the Department of Revenue.

25         c.  The Office of Tourism, Trade, and Economic

26  Development shall periodically monitor all projects in a

27  manner consistent with available resources to ensure that

28  resources are used in accordance with this paragraph; however,

29  each project must be reviewed at least once every 2 years.

30         d.  The Office of Tourism, Trade, and Economic

31  Development shall, in consultation with the Department of

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  1  Community Affairs, the Florida Housing Finance Corporation,

  2  and the statewide and regional housing and financial

  3  intermediaries, market the availability of the community

  4  contribution tax credit program to community-based

  5  organizations.

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

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

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

  9  period for such credit.

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

11  Florida Statutes, is amended to read:

12         212.096  Sales, rental, storage, use tax; enterprise

13  zone jobs credit against sales tax.--

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

15  section:

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

17  firm, partnership, corporation, bank, savings association,

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

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

20  enterprise zone. The business must demonstrate to the

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

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

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

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

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

26  An eligible business does not include any business which has

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

28  business employee first beginning employment with the business

29  after July 1, 1995.

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

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

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

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

  3  month.

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

  5  enterprise zone, a qualified Job Training Partnership Act

  6  classroom training participant, or a participant in the

  7  welfare transition program participant who begins employment

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

  9  been previously employed full-time within the preceding 12

10  months by the eligible business, or a successor eligible

11  business, claiming the credit allowed by this section.

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

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

14  United States Department of Labor for purposes of unemployment

15  compensation tax administration and employment estimation

16  resulting directly from a business operation in this state.

17  This number may not include temporary construction jobs

18  involved with the construction of facilities or any jobs that

19  have previously been included in any application for tax

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

21  employment of an employee leased from an employee leasing

22  company licensed under chapter 468 if such employee has been

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

24  36 hours per week for more than 6 months.

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

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

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

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

29

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

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

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

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

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

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

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

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

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

  8  provision of meaningful employment opportunities which will

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

10  economic expansion of enterprise zones and the state.

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

12  affirmative showing by an eligible a business to the

13  satisfaction of the department that the requirements of this

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

15  against the tax remitted under this chapter.

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

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

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

19  created, unless the business is located within a rural

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

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

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

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

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

25  the credit shall be computed as 30 15 percent of the actual

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

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

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

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

30

31

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

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

  3  exceed $1,500 a month; or

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

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

  6  a WAGES Program participant pursuant to chapter 414.

  7

  8  For purposes of this paragraph, monthly wages shall be

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

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

11  the compensation paid to such employee that is subject to

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

13  consecutive months, beginning with the first tax return due

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

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

16  business must file under oath with the governing body or

17  enterprise zone development agency having jurisdiction over

18  the enterprise zone where the business is located, as

19  applicable, a statement which includes:

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

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

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

23  enterprise zone in which the employee resides if the new

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

25  applicable, documentation that the employee is a qualified Job

26  Training Partnership Act classroom training participant or a

27  welfare transition program participant.

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

29  permanent employee of the business, including, for each

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

31

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  1  identifying number assigned pursuant to s. 290.0065 to the

  2  enterprise zone in which the employee resides.

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

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

  5  new employee.

  6         (e)  Demonstration to the department that the total

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

  8  increased in an enterprise zone from the average of the

  9  previous 12 months.

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

11  290.0065 to the enterprise zone in which the business is

12  located.

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

14  defined by s. 288.703(1).

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

16  application, the governing body or enterprise zone development

17  agency shall review the application to determine if it

18  contains all the information required pursuant to this

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

20  governing body or agency shall certify all applications that

21  contain the information required pursuant to this subsection

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

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

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

25  business are residents of an enterprise zone, excluding

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

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

28  transmitted to the executive director of the Department of

29  Revenue. The business shall be responsible for forwarding a

30  certified application to the department within the time

31  specified in paragraph (i) (h).

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

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

  3  after the new employee is hired.

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

  5  completed application for a credit authorized in this section,

  6  the department shall inform the business that the application

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

  8  due after receipt of approval from the department.

  9         (5)(4)  In the event the application is incomplete or

10  insufficient to support the credit authorized in this section,

11  the department shall deny the credit and notify the business

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

13         (6)(5)  The credit provided in this section does not

14  apply:

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

16  stockholder of an eligible business.

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

18  period less than 3 full calendar months.

19         (7)(6)  The credit provided in this section shall not

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

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

22  period is delinquent.

23         (8)(7)  In the event an eligible business has a credit

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

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

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

27  state on that tax return.

28         (9)(8)  Any business which has claimed this credit

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

30  220.181 for any new employee beginning employment after July

31  1, 1995.

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  1         (10)(9)  It shall be the responsibility of each

  2  business to affirmatively demonstrate to the satisfaction of

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

  4         (11)(10)  Any person who fraudulently claims this

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

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

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

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

  9  775.082 or s. 775.083.

10         (12)(11)  The provisions of this section, except for

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

12  2005.

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

14  Florida Statutes, is amended to read:

15         212.098  Rural Job Tax Credit Program.--

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

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

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

19  qualified county and is predominantly engaged in, or is

20  headquarters for a business predominantly engaged in,

21  activities usually provided for consideration by firms

22  classified within the following standard industrial

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

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

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

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

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

28  industry eligible for the qualified target industry business

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

30  service operation that services a multistate market or an

31  international market is also an eligible business. In

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

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

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

  4  from the list of standard industrial classifications used to

  5  determine an eligible business, and the Legislature may

  6  implement such recommendations. Excluded from eligible

  7  receipts are receipts from retail sales, except such receipts

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

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

10  7996.  For purposes of this paragraph, the term

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

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

13  those activities usually provided for consideration by firms

14  in the specified standard industrial classification. The

15  determination of whether the business is located in a

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

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

18  section. Commonly owned and controlled entities are to be

19  considered a single business entity.

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

21  eligible business who performs duties in connection with the

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

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

24  within the qualified county in which the eligible business is

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

26  employee leasing company licensed under chapter 468, if such

27  employee has been continuously leased to the employer for an

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

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

30  qualified employee.

31

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

  2  contained within a rural area of critical economic concern

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

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

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

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

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

  8  Trade, and Economic Development shall rank and tier the

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

10         1.  Highest unemployment rate for the most recent

11  36-month period.

12         2.  Lowest per capita income for the most recent

13  36-month period.

14         3.  Highest percentage of residents whose incomes are

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

16  available.

17         4.  Average weekly manufacturing wage, based upon the

18  most recent data available.

19

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

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

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

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

24  Notwithstanding this definition, "qualified county" also means

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

26  federal Enterprise Community pursuant to the 1999 Agricultural

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

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

29  Tourism, Trade, and Economic Development.

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

31  beginning operation on a site in a qualified county and

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  1  clearly separate from any other commercial or business

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

  3  business entity that operated an eligible business within a

  4  qualified county within the 48 months before the period

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

  6  new business.

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

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

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

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

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

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

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

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

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

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

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

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

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

20  credit for each such employee.

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

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

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

24  existing eligible business with fewer than 50 employees in a

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

26  application has at least 20 percent 5 more qualified employees

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

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

29  employee. An existing eligible business that has 50 employees

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

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

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

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

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

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

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

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

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

  8  15 more qualified employees than it had 1 year prior to its

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

10  such additional employee. An existing business may apply for

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

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

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

14  under this subsection sooner than 12 months after the

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

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

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

18  provided for any qualified employee who is a welfare

19  transition program participant. For any existing eligible

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

21  additional $500 credit shall be provided for any qualified

22  employee who is a welfare transition program participant. Such

23  employee must be employed on the application date and have

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

25  addition to other credits pursuant to this section regardless

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

27  concerning the eligibility of an employee for this credit must

28  be submitted as determined by the department.

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

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

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

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  1  qualified employees on the application date on which a credit

  2  under this section was based for any previous application,

  3  including an application under subsection (2).

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

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

  6  Trade, and Economic Development a statement that includes the

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

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

  9  information that the Department of Revenue requires.

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

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

12  Economic Development shall review the application to determine

13  whether it contains all the information required by this

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

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

16  Tourism, Trade, and Economic Development shall approve all

17  applications that contain the information required by this

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

19  eligible to receive a credit.

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

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

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

23  Economic Development, shall notify the governing bodies in

24  areas designated as qualified counties when the $5 million

25  maximum amount has been reached. Applications must be

26  considered for approval in the order in which they are

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

28  existing business.  This limitation applies to the value of

29  the credit as contained in approved applications. Approved

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

31  to this section.

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

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

  3  creating jobs.

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

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

  6  Trade, and Economic Development shall deny the credit and

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

  8  for this credit within 3 months after such notification.

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

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

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

12  after the approval of the application by the department.

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

14  affirmatively demonstrate to the satisfaction of the

15  Department of Revenue that it meets the requirements of this

16  section.

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

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

19  100 percent of the credit and is guilty of a misdemeanor of

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

21  775.083.

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

23  section against its corporate income tax liability, as

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

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

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

27  be taken against only one tax.

28         (12)  The department shall adopt rules governing the

29  manner and form of applications for credit and may establish

30  guidelines as to the requisites for an affirmative showing of

31  qualification for the credit under this section.

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  1         Section 4.  Reduction or waiver of financial match

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

  3  agencies and organizations of the Rural Economic Development

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

  5  Florida Statutes, shall review the financial match

  6  requirements for projects in rural areas as defined in section

  7  288.0656(2)(b), Florida Statutes.

  8         (1)  Each agency and organization shall develop a

  9  proposal to waive or reduce the match requirement for rural

10  areas.

11         (2)  Agencies and organizations shall ensure that all

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

13  Economic Development for review by the REDI agencies.

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

15  of Tourism, Trade, and Economic Development for distribution

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

17  agencies and organizations must be called within 30 days after

18  receipt of such proposals for REDI comment and recommendations

19  on each proposal.

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

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

22  three or more of the factors identified in section

23  288.0656(2)(a), Florida Statutes.

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

25  used for financial match of federal programs when there is

26  fiscal hardship and the match requirements may not be waived

27  or reduced.

28         (6)  When match requirements are not reduced or

29  eliminated, donations of land, though usually not recognized

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

31

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

  2  organizations shall expedite the rule adoption and amendment

  3  process if necessary to incorporate the reduction in match by

  4  rural areas in fiscal distress.

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

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

  7  made with waivers, and recommendations for future changes.

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

  9  Statutes, is amended to read:

10         220.03  Definitions.--

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

12  not otherwise distinctly expressed or manifestly incompatible

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

14  following meanings:

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

16  property taxes levied for operating purposes and does not

17  include interest, penalties, or discounts foregone. In

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

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

20  or additional real or personal property acquired to establish

21  a new business or facilitate a business expansion, including

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

23  and including one or more buildings or other structures,

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

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

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

27  more corporations which constitute an affiliated group of

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

29  Code.

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

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

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

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

  3  provisions of this chapter. The provisions of this paragraph

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

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

  6  business firm of any of the following items:

  7         1.  Cash or other liquid assets.

  8         2.  Real property.

  9         3.  Goods or inventory.

10         4.  Other physical resources as identified by the

11  department.

12

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

14  June 30, 2005.

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

16  foreign corporations qualified to do business in this state or

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

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

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

20  profit, under chapter 617; agricultural cooperative marketing

21  associations, under chapter 618; professional service

22  corporations, under chapter 621; foreign unincorporated

23  associations, under chapter 622; private school corporations,

24  under chapter 623; foreign corporations not for profit which

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

26  organizations, associations, legal entities, and artificial

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

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

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

30  include proprietorships, even if using a fictitious name;

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

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  1  that are taxable as partnerships for federal income tax

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

  3  616; estates of decedents or incompetents; testamentary

  4  trusts; or private trusts.

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

  6  this state.

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

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

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

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

11  be construed according to the method of accounting upon the

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

13  code.

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

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

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

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

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

19  30, 2005.

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

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

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

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

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

25  business entity authorized to do business in this state as

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

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

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

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

30  and personal property and which establishes five or more new

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

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  1  such location. The provisions of this paragraph shall expire

  2  and be void on June 30, 2005.

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

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

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

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

  7  Internal Revenue Code, the period determined under that

  8  subsection.

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

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

11  exclude other things otherwise within the meaning of the term

12  defined.

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

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

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

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

17  incorporated municipality in the state. The provisions of this

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

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

20  zone property tax credit, means any business entity authorized

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

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

23  220.62, subject to the tax imposed by the provisions of this

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

25  enterprise zone and clearly separate from any other commercial

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

27  savings and loan association and which establishes five or

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

29  employees at such location. The provisions of this paragraph

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

31

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

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

  3  zone, a qualified Job Training Partnership Act classroom

  4  training participant, or a WAGES Program participant in the

  5  welfare transition program who is employed at a business

  6  located in an enterprise zone who begins employment in the

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

  8  been previously employed full-time within the preceding 12

  9  months by the business or a successor business claiming the

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

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

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

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

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

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

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

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

18  of an employee leased from an employee leasing company

19  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. The person must be

22  performing such duties at a business site located in an

23  enterprise zone. The provisions of this paragraph shall expire

24  and be void on June 30, 2005.

25         (r)  "Nonbusiness income" means rents and royalties

26  from real or tangible personal property, capital gains,

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

28  the extent that they do not arise from transactions and

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

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

31  income from tangible and intangible property if the

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  1  acquisition, management, and disposition of the property

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

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

  4  apportionable income without violating the due process clause

  5  of the United States Constitution. For purposes of this

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

  7  directly or indirectly attributable thereto.  Functionally

  8  related dividends are presumed to be business income.

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

10  joint venture, or other unincorporated organization through or

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

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

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

14  profits interest in a partnership.

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

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

17  designed to construct, improve, or substantially rehabilitate

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

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

20  provide commercial, industrial, or public resources and

21  facilities; or designed to improve entrepreneurial and

22  job-development opportunities for low-income persons. The term

23  also includes the provision of educational programs and

24  materials by an eligible sponsor. A project may be the

25  investment necessary to increase access to high-speed

26  broadband capability in rural communities with enterprise

27  zones, including projects that result in improvements to

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

29  may include the provision of museum educational programs and

30  materials that are directly related to any project approved

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

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

  2  paragraph does not preclude projects that propose to construct

  3  or rehabilitate low-income or very-low-income housing on

  4  scattered sites. The Office of Tourism, Trade, and Economic

  5  Development may reserve up to 50 percent of the available

  6  annual tax credits under s. 220.181 for housing for

  7  very-low-income households pursuant to s. 420.9071(28) for the

  8  first 6 months of the fiscal year. With respect to housing,

  9  contributions may be used to pay the following eligible

10  project-related activities:

11         1.  Project development, impact, and management fees

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

13         2.  Down payment and closing costs for eligible

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

15         3.  Administrative costs, including housing counseling

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

17  contribution, directly related to low-income or

18  very-low-income projects; and

19         4.  Removal of liens recorded against residential

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

21  governments when satisfaction of the lien is a necessary

22  precedent to the transfer of the property to an eligible

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

24  purpose of promoting home ownership. Contributions for lien

25  removal must be received from a nonrelated third party.

26  "Project" means any activity undertaken by an eligible

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

28  construct, improve, or substantially rehabilitate housing or

29  commercial, industrial, or public resources and facilities or

30  to improve entrepreneurial and job-development opportunities

31  for low-income persons.

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  1

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

  3  June 30, 2005.

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

  5  replacement or restoration of real or tangible property

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

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

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

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

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

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

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

13  June 30, 2005.

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

15  forms prescribed, by the department.

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

17  required under this code.

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

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

20  be void on June 30, 2005.

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

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

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

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

25  any political subdivision of any of the foregoing.

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

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

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

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

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

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

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

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

  3  individuals (including individuals employed by an affiliate)

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

  5  when the only property owned or leased by said corporation

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

  7  premises of a printer with which it has contracted for

  8  printing, if such property consists of the final printed

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

10  product, or property from which the printed product is

11  produced.

12         (bb)  "Functionally related dividends" include the

13  following types of dividends:

14         1.  Those received from a subsidiary of which the

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

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

17  engaged in the same general line of business.

18         2.  Those received from any corporation which is either

19  a significant source of supply for the taxpayer or its

20  affiliated group or a significant purchaser of the output of

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

22  significant part of its output or obtains a significant part

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

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

25  or more.

26         3.  Those resulting from the investment of working

27  capital or some other purpose in furtherance of the taxpayer

28  or its affiliated group.

29

30  However, dividends not otherwise subject to tax under this

31  chapter are excluded.

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

  2  expenditures for substantial renovation, equipment, including

  3  playground equipment and kitchen appliances and cooking

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

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

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

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

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

  9  employees of the taxpayer.

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

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

12  or any facility providing daily care to children who are

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

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

15  used by the employees of the taxpayer.

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

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

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

19  from the processing of citrus products and the manufacture of

20  juices.

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

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

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

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

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

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

27  United States Department of Labor for purposes of unemployment

28  compensation tax administration and employment estimation

29  resulting directly from business operations in this state.

30  This number may not include temporary construction jobs

31  involved with the construction of facilities or any jobs that

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  1  have previously been included in any application for tax

  2  credits under s. 220.181(1).

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

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

  5  read:

  6         220.181  Enterprise zone jobs credit.--

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

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

  9  chapter to any business located in an enterprise zone which

10  demonstrates to the department that the total number of

11  full-time jobs defined under s. 212.096(1)(d) has increased

12  from the average of the previous 12 months. This credit is

13  also available for a business that added a minimum of five new

14  full-time jobs in an enterprise zone between July 1, 2000, and

15  December 31, 2001 employs one or more new employees. The

16  credit shall be computed as 20 follows:

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

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

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

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

21  290.004(8), in which case the credit shall be 30 percent of

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

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

24  business are residents of an enterprise zone, excluding

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

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

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

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

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

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

31  consecutive months.;

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

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

  3  exceed $1,500 a month; or

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

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

  6  a welfare transition program participant.

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

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

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

10  months.

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

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

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

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

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

16  credits and unused credit carryovers in the order provided in

17  s. 220.02(8).

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

19  business must file under oath with the governing body or

20  enterprise zone development agency having jurisdiction over

21  the enterprise zone where the business is located, as

22  applicable, a statement which includes:

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

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

25  taxable year, including the identifying number assigned

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

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

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

29  the employee is a qualified Job Training Partnership Act

30  classroom training participant or a welfare transition program

31  participant.

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  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 business.

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

  8  290.0065 to the enterprise zone in which the eligible business

  9  is located.

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

11  employee claimed.

12         (f)  Demonstration to the department that the total

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

14  previous 12 months.

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

16  defined by s. 288.703(1).

17         Section 7.  Subsections (1), (2), (3), and (4) of

18  section 220.183, Florida Statutes, are amended to read:

19         220.183  Community contribution tax credit.--

20         (1)  AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX

21  CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM

22  SPENDING.--

23         (a)  There shall be allowed a credit of 50 percent of a

24  community contribution against any tax due for a taxable year

25  under this chapter.

26         (b)  No business firm shall receive more than $200,000

27  in annual tax credits for all approved community contributions

28  made in any one year.

29         (c)  The total amount of tax credit which may be

30  granted for all programs approved under this section, s.

31  212.08(5)(q), and s. 624.5105 is $20 $10 million annually.

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  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)  If the credit granted pursuant to this section is

  5  not fully used in any one year because of insufficient tax

  6  liability on the part of the business firm, the unused amount

  7  may be carried forward for a period not to exceed 5 years. The

  8  carryover credit may be used in a subsequent year when the tax

  9  imposed by this chapter for such year exceeds the credit for

10  such year under this section after applying the other credits

11  and unused credit carryovers in the order provided in s.

12  220.02(8).

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

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

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

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

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

18  credit provided by this section.

19         (2)  ELIGIBILITY REQUIREMENTS.--

20         (a)  All community contributions by a business firm

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

22         (b)  All community contributions must be reserved

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

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

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

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

27  420.9071(28), for the first 6 months of the fiscal year.

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

29  sponsor," defined here as:

30         1.  A community action program;

31

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  1         2.  A nonprofit community-based community development

  2  organization whose mission is the provision of housing for

  3  low-income or very-low-income households or increasing

  4  entrepreneurial and  job-development opportunities for

  5  low-income persons corporation;

  6         3.  A neighborhood housing services corporation;

  7         4.  A local housing authority, created pursuant to

  8  chapter 421;

  9         5.  A community redevelopment agency, created pursuant

10  to s. 163.356;

11         6.  The Florida Industrial Development Corporation;

12         7.  An historic preservation district agency or

13  organization;

14         8.  A regional workforce board private industry

15  council;

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

17  240.551;

18         10.  An enterprise zone development agency created

19  pursuant to s. 290.0056 s. 290.0057; or

20         11.  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         12.  Units of local government;

27         13.  Units of state government; or

28         14.11.  Such other agency as the Office of Tourism,

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

30  designate by rule.

31

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  1  In no event shall a contributing business firm have a

  2  financial interest in the eligible sponsor.

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

  4  as an enterprise zone or a Front Porch Florida Community

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

  6  project designed to construct or rehabilitate housing for

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

  8  420.9071(19) and (28) low-income housing is exempt from the

  9  area requirement of this paragraph. This section does not

10  preclude projects that propose to construct or rehabilitate

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

12  scattered sites. Any project designed to provide increased

13  access to high-speed broadband capabilities which includes

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

15  infrastructure in any area of a rural county.

16         (3)  APPLICATION REQUIREMENTS.--

17         (a)  Any eligible sponsor wishing to participate in

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

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

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

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

22  proposal shall also contain a resolution from the local

23  governmental unit in which it is located certifying that the

24  project is consistent with local plans and regulations.

25         (b)  Any business wishing to participate in this

26  program must submit an application for tax credit to the

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

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

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

30  verify the terms of the application and indicate its receipt

31  of willingness to receive the contribution, which verification

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  1  indicate its willingness to receive the contribution, which

  2  verification must shall be in writing and shall accompany the

  3  application for tax credit.

  4         (c)  The business firm must submit a separate

  5  application for tax credit for each individual contribution

  6  that which it makes proposes to contribute to each individual

  7  project.

  8         (4)  ADMINISTRATION.--

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

10  Development has authority to adopt rules pursuant to ss.

11  120.536(1) and 120.54 to implement the provisions of this

12  section, including rules for the approval or disapproval of

13  proposals by business firms.

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

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

16  the notification must proposal shall state the maximum credit

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

18  be transmitted to the executive director of the Department of

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

20  the business firm.

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 utilized in accordance with this section;

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

26  once every 2 years.

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

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

29  provisions of this section.

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

31  Development shall, in consultation with the Department of

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  1  Community Affairs, the Florida Housing Finance Corporation,

  2  and the statewide and regional housing and financial

  3  intermediaries, market the availability of the community

  4  contribution tax credit program to community-based

  5  organizations.

  6         Section 8.  Section 288.018, Florida Statutes, is

  7  amended to read:

  8         288.018  Regional Rural Development Grants Program.--

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

10  Development shall establish a matching grant program to

11  provide funding to regionally based economic development

12  organizations representing rural counties and communities for

13  the purpose of building the professional capacity of their

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

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

16  grants to such regionally based economic development

17  organizations. The maximum amount an organization may receive

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

19  critical economic concern recommended by the Rural Economic

20  Development Initiative and designated by the Governor, and

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

22  resources.

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

24  Tourism, Trade, and Economic Development shall consider the

25  demonstrated need of the applicant for assistance and require

26  the following:

27         (a)  Documentation of official commitments of support

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

29  regional organization.

30

31

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  1         (b)  Demonstration that each unit of local government

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

  3  organization.

  4         (c)  Demonstration that the private sector has made

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

  6         (d)  Demonstration that the organization is in

  7  existence and actively involved in economic development

  8  activities serving the region.

  9         (e)  Demonstration of the manner in which the

10  organization is or will coordinate its efforts with those of

11  other local and state organizations.

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

13  Development may also contract for the development of an

14  enterprise zone web portal or web sites for each enterprise

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

16  in disadvantaged urban and rural enterprise zones. Each

17  enterprise zone web page should include downloadable links to

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

19  that help businesses and residents receive information

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

21  neighborhood improvement activities.

22         (4)(3)  The Office of Tourism, Trade, and Economic

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

24  year from funds appropriated to the Rural Community

25  Development Revolving Loan Fund for the purposes outlined in

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

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

28  the administration of the purposes specified in this section.

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

30  shall be released quarterly and shall be calculated based on

31  the applications in process.

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  1         Section 9.  Section 288.019, Florida Statutes, is

  2  created to read:

  3         288.019  Rural considerations in grant review and

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

  5  the fullest extent possible, the member agencies and

  6  organizations of the Rural Economic Development Initiative

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

  8  and loan application evaluation criteria to ensure the fullest

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

10  resources available throughout the state.

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

12  evaluation and scoring procedures and develop modifications to

13  those procedures which minimize the impact of a project within

14  a rural area.

15         (2)  Evaluation criteria and scoring procedures must

16  provide for an appropriate ranking based on the proportionate

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

18  similar project impacts on an urban area.

19         (3)  Evaluation criteria and scoring procedures must

20  recognize the disparity of available fiscal resources for an

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

22  rural county.

23         (a)  The evaluation criteria should weight contribution

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

25  level.

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

27  financial match when a county is experiencing financial

28  distress through elevated unemployment at a rate in excess of

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

30  loss of its ad valorem base.

31

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  1         (4)  For existing programs, the modified evaluation

  2  criteria and scoring procedure must be delivered to the Office

  3  of Tourism, Trade, and Economic Development for distribution

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

  5  organizations shall review and make comments. Future rules,

  6  programs, evaluation criteria, and scoring processes must be

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

  8  recommendation to allow rural counties fuller access to the

  9  state's resources.

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

11  Statutes, is amended to read:

12         288.065  Rural Community Development Revolving Loan

13  Fund.--

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

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

16  governments, or economic development organizations

17  substantially underwritten by a unit of local government,

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

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

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

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

22  186.901, residing in incorporated and unincorporated areas of

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

24  development organizations substantially underwritten by a unit

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

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

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

28  shall be made pursuant to agreements specifying the terms and

29  conditions agreed to between the applicant local government

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

31  The loans shall be the legal obligations of the applicant

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  1  local government. All repayments of principal and interest

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

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

  4  critical economic concern designated by the Governor, and upon

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

  6  Development, repayments of principal and interest may be

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

  8  repayments are dedicated and matched to fund regionally based

  9  economic development organizations representing the rural area

10  of critical economic concern.

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

12  Florida Statutes, is amended to read:

13         288.0656  Rural Economic Development Initiative.--

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

15  the head of each of the following agencies and organizations

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

17  agency or organization to serve as the REDI representative for

18  the agency or organization:

19         1.  The Department of Community Affairs.

20         2.  The Department of Transportation.

21         3.  The Department of Environmental Protection.

22         4.  The Department of Agriculture and Consumer

23  Services.

24         5.  The Department of State.

25         6.  The Department of Health.

26         7.  The Department of Children and Family Services.

27         8.  The Department of Corrections.

28         9.  The Agency for Workforce Innovation Department of

29  Labor and Employment Security.

30         10.  The Department of Education.

31         11.  The Department of Juvenile Justice.

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  1         12.11.  The Fish and Wildlife Conservation Commission.

  2         13.12.  Each water management district.

  3         14.13.  Enterprise Florida, Inc.

  4         15.  Workforce Florida, Inc.

  5         16.14.  The Florida Commission on Tourism or VISIT

  6  Florida.

  7         17.15.  The Florida Regional Planning Council

  8  Association.

  9         18.16.  The Florida State Rural Development Council.

10         19.17.  The Institute of Food and Agricultural Sciences

11  (IFAS).

12

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

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

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

16  Development.

17         (b)  Each REDI representative must have comprehensive

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

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

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

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

22  projects relating to economically distressed rural communities

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

24  prompt effective response to problems arising with regard to

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

26  representatives in the identification of opportunities for

27  preferential awards of program funds and allowances and waiver

28  of program requirements when necessary to encourage and

29  facilitate long-term private capital investment and job

30  creation.

31

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

  2  the review and evaluation of statutes and rules for adverse

  3  impact on rural communities and the development of alternative

  4  proposals to mitigate that impact.

  5         (d)  Each REDI representative shall be responsible for

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

  7  agency is informed about the Rural Economic Development

  8  Initiative and for providing assistance throughout the agency

  9  in the implementation of REDI activities.

10         Section 12.  Section 288.1088, Florida Statutes, is

11  amended to read:

12         288.1088  Quick Action Closing Fund.--

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

14  retaining, and providing favorable conditions for the growth

15  of certain high-impact business facilities, privately

16  developed critical rural infrastructure, or key facilities in

17  economically distressed urban or rural communities which

18  provide provides widespread economic benefits to the public

19  through high-quality employment opportunities in such

20  facilities or and in related facilities attracted to the

21  state, through the increased tax base provided by the

22  high-impact facility and related businesses in related

23  sectors, through an enhanced entrepreneurial climate in the

24  state and the resulting business and employment opportunities,

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

26  universities and community colleges. In the global economy,

27  there exists serious and fierce international competition for

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

29  resources for economic development have been used, the state

30  continues to encounter severe competitive disadvantages in

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

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  1  rural areas must provide a competitive environment for

  2  business in the information age. This often requires an

  3  incentive to make it feasible for private investors to provide

  4  infrastructure in those areas.

  5         (b)  The Legislature therefore declares that sufficient

  6  resources shall be available to respond to extraordinary

  7  economic opportunities and to compete effectively for these

  8  high-impact business facilities, critical private

  9  infrastructure in rural areas, and key businesses in

10  economically distressed urban or rural communities.

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

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

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

14  individual proposals for high-impact business facilities and

15  forward recommendations regarding the use of moneys in the

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

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

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

19         1.  A description of the type of facility or

20  infrastructure, its operations business operation, and the

21  associated product or service associated with the facility.

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

23  be created by the facility and the total estimated average

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

25  developed rural infrastructure, the types of business

26  activities and jobs stimulated by the investment.

27         3.  The cumulative amount of investment to be dedicated

28  to the facility within a specified period.

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

30  expected to stimulate in a particular business sector in the

31

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

  2  community colleges.

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

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

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

  6  critical rural infrastructure.

  7         (b)  Upon receipt of the evaluation and recommendation

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

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

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

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

12  include proposed performance conditions that the project

13  facility must meet to obtain incentive funds. The Governor

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

15  of the House of Representatives before giving final approval

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

17  recommend approval of a project and release of funds pursuant

18  to the legislative consultation and review requirements set

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

20  performance conditions the project must meet to obtain funds.

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

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

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

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

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

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

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

28  state, average salary, and total capital investment;

29  demonstrate a baseline of current service and a measure of

30  enhanced capability; the methodology for validating

31

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

  2  sanctions for failure to meet performance conditions.

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

  4  contractor performance. Such validation shall be reported

  5  within 6 months after completion of the contract to the

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

  7  House of Representatives.

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

  9  Florida Statutes, is amended to read:

10         288.9015  Enterprise Florida, Inc.; purpose; duties.--

11         (2)  It shall be the responsibility of Enterprise

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

13  communities, and distressed urban communities, and enterprise

14  zones as locations for potential new investment, to

15  aggressively assist in the retention and expansion of existing

16  businesses in these communities, and to aggressively assist

17  these communities in the identification and development of new

18  economic development opportunities for job creation, fully

19  using state incentive programs such as the Qualified Target

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

21  Action Closing Fund under s. 288.1088 in economically

22  distressed areas.

23         Section 14.  Section 290.004, Florida Statutes, is

24  amended to read:

25         290.004  Definitions relating to Florida Enterprise

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

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

28  business investment corporation, a certified development

29  corporation, a small business investment corporation, or other

30  similar entity incorporated under Florida law that has limited

31

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  1  its investment policy to making investments solely in minority

  2  business enterprises.

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

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

  5  Tourism, Trade, and Economic Development.

  6         (4)  "Governing body" means the council or other

  7  legislative body charged with governing the county or

  8  municipality.

  9         (5)  "Interagency coordinating council" means the

10  Enterprise Zone Interagency Coordinating Council created

11  pursuant to s. 290.009.

12         (6)  "Minority business enterprise" has the same

13  meaning as in s. 288.703.

14         (7)  "Office" means the Office of Tourism, Trade, and

15  Economic Development.

16         (8)  "Rural enterprise zone" means an enterprise zone

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

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

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

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

21  county and one or more municipalities. An enterprise zone

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

23  is considered to be a rural enterprise zone.

24         (9)(8)  "Secretary" means the Secretary of Commerce.

25         (10)(9)  "Small business" has the same meaning as in s.

26  288.703.

27         Section 15.  Enterprise zone designation for Sarasota

28  County or Sarasota County and Sarasota.--Sarasota County, or

29  Sarasota County and the City of Sarasota jointly, may apply to

30  the Office of Tourism, Trade, and Economic Development for

31  designation of one enterprise zone within the county, or

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  1  within both the county and the municipality, which zone

  2  encompasses an area that is south of the north county line,

  3  west of Tuttle Avenue, north of 10th Street, and east of U.S.

  4  Highway 41. The application must be submitted by December 31,

  5  2001, and must comply with the requirements of section

  6  290.0055, Florida Statutes. Notwithstanding the provisions of

  7  section 290.0065, Florida Statutes, limiting the total number

  8  of enterprise zones designated and the number of enterprise

  9  zones within a population category, the Office of Tourism,

10  Trade, and Economic Development may designate one enterprise

11  zone under this section. The Office of Tourism, Trade, and

12  Economic Development shall establish the initial effective

13  date of the enterprise zone designated under this section.

14         Section 16.  Section 290.00555, Florida Statutes, is

15  amended to read:

16         290.00555  Satellite enterprise zones.--Before December

17  31, 1999, Any municipality an area of which has previously

18  received designation as an enterprise zone in the population

19  category described in s. 290.0065(3)(a)3. may create a

20  satellite enterprise zone not exceeding 1.5 square miles in

21  area outside of and, notwithstanding anything contained in s.

22  290.0055(4), or any other law, in addition to the previously

23  designated enterprise zone boundaries. The Office of Tourism,

24  Trade, and Economic Development shall amend the boundaries of

25  the areas previously designated by any such municipality as

26  enterprise zones upon receipt of a resolution adopted by the

27  municipality describing the satellite enterprise zone areas,

28  as long as the additional areas are consistent with the

29  categories, criteria, and limitations imposed by s. 290.0055.

30  However, the requirements imposed by s. 290.0055(4)(d) do not

31  apply to such satellite enterprise zone areas.

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  1         Section 17.  Satellite enterprise zones may be created

  2  pursuant to section 290.00555, Florida Statutes, effective

  3  retroactively to December 31, 1999. Resolutions adopted to

  4  create satellite enterprise zones under this section must be

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

  6  Development no later than August 1, 2001. The Office of

  7  Tourism, Trade, and Economic Development must amend the

  8  boundaries of previously designated enterprise zones to create

  9  eligible satellite enterprise zones no later than September 1,

10  2001. Notwithstanding the time limitations contained in

11  chapter 212, Florida Statutes, a business in a satellite

12  enterprise zone designated under this section which was

13  eligible to receive tax incentives pursuant to section

14  212.08(5)(g) and (h) and section 212.096, Florida Statutes,

15  during the period beginning December 31, 1999, and ending on

16  the date of the creation of the satellite enterprise zone,

17  must submit an application for the tax incentives by December

18  1, 2001. All other requirements of the enterprise zone program

19  apply to such a business.

20         Section 18.  Section 290.0065, Florida Statutes, is

21  amended to read:

22         290.0065  State designation of enterprise zones.--

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

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

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

26  the office department, in consultation with the interagency

27  coordinating council, shall determine which areas nominated by

28  such governing bodies meet the criteria outlined in s.

29  290.0055 and are the most appropriate for designation as state

30  enterprise zones. The office department is authorized to

31  designate up to 5 areas within each of the categories

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

  2  except that the office department may only designate a total

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

  4  not designate more than three enterprise zones in any one

  5  county. All designations, including any provision for

  6  redesignations, of state enterprise zones pursuant to this

  7  section shall be effective July 1, 1995.

  8         (2)  Each application made pursuant to s. 290.0055

  9  shall be ranked competitively within the appropriate category

10  established pursuant to subsection (3) based on the pervasive

11  poverty, unemployment, and general distress of the area; the

12  strategic plan, including local fiscal and regulatory

13  incentives, prepared pursuant to s. 290.0057; and the

14  prospects for new investment and economic development in the

15  area. Pervasive poverty, unemployment, and general distress

16  shall be weighted 35 percent; strategic plan and local fiscal

17  and regulatory incentives shall be weighted 40 percent; and

18  prospects for new investment and economic development in the

19  area shall be weighted 25 percent.

20         (3)(a)  Each area designated as an enterprise zone

21  pursuant to this section shall be placed in one of the

22  following categories based on the 1990 census:

23         1.  Communities consisting of census tracts in areas

24  having a total population of 150,000 persons or more.

25         2.  Communities consisting of census tracts in areas

26  having a total population of 50,000 persons or more but less

27  than 150,000 persons.

28         3.  Communities having a population of 20,000 persons

29  or more but less than 50,000 persons.

30         4.  Communities having a population of 7,500 persons or

31  more but less than 20,000 persons.

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  1         5.  Communities having a population of less than 7,500

  2  persons.

  3         (b)  Any area authorized to be an enterprise zone by

  4  both a county and a municipality shall be placed in the

  5  appropriate category established under paragraph (a) in which

  6  an application by the municipality would have been considered

  7  if the municipality had acted alone, if at least 60 percent of

  8  the population of the area authorized to be an enterprise zone

  9  resides within the municipality. An area authorized to be an

10  enterprise zone by a county and one or more municipalities

11  shall be placed in the category in which an application by the

12  municipality with the highest percentage of residents in such

13  area would have been considered if such municipality had

14  authorized the area to be an enterprise zone. An area

15  authorized to be an enterprise zone by a county as defined by

16  s. 125.011(1) shall be placed in the category in which an

17  application by the municipality in which the area is located

18  would have been considered if the municipality had authorized

19  such area to be an enterprise zone. An area authorized to be

20  an enterprise zone by a county as defined by s. 125.011(1)

21  which area is located in two or more municipalities shall be

22  placed in the category in which an application by the

23  municipality with the highest percentage of residents in such

24  area would have been considered if such municipality had

25  authorized such area to be an enterprise zone.

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

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

28  section and originally approved through a joint application

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

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

31  a state enterprise zone upon the creation of an enterprise

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  1  zone development agency pursuant to s. 290.0056 and the

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

  3  area redesignated pursuant to this subsection, other than an

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

  5  relocated or modified by the appropriate governmental bodies.

  6  Such relocation or modification shall be identified in the

  7  strategic plan and shall meet the requirements for designation

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

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

10         (b)  The office department shall place any area

11  designated as a state enterprise zone pursuant to this

12  subsection in the appropriate category established in

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

14  limitations on state enterprise zone designations set out in

15  subsection (1).

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 by s. 125.011(1),

19  may not apply for designation of another area.

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

21  a federal empowerment zone or enterprise community pursuant to

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

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

24  Appropriations Act shall be designated a state enterprise zone

25  as follows:

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

27  urban enterprise community pursuant to Title XIII of the

28  Omnibus Budget Reconciliation Act of 1993 or the Taxpayer

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

30  by the office department upon completion of the requirements

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

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

  2  may incorporate and include such designated urban empowerment

  3  zone or urban enterprise community areas within the boundaries

  4  of its state enterprise zones without any limitation as to

  5  size.

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

  7  rural enterprise community pursuant to Title XIII of the

  8  Omnibus Budget Reconciliation Act of 1993 or the 1999

  9  Agricultural Appropriations Act shall be designated a state

10  rural enterprise zone by the office department upon completion

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

12  incorporate and include such designated rural empowerment zone

13  or rural enterprise community within the boundaries of its

14  state enterprise zones without any limitation as to size.

15         (c)  Any county or municipality having jurisdiction

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

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

18  may not apply for designation of another area.

19         (d)  Prior to designating such areas as state

20  enterprise zones, the office department shall ensure that the

21  governing body having jurisdiction over the zone submits the

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

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

24  enterprise zone development agency pursuant to s. 290.0056.

25         (e)  The office department shall place any area

26  designated as a state enterprise zone pursuant to this

27  subsection in the appropriate category established in

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

29  limitations on state enterprise zone designations set out in

30  subsection (1).

31

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  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)  Such guidelines rules shall provide for the

  7  measurement of pervasive poverty, unemployment, and general

  8  distress using the criteria outlined by s. 290.0058.

  9         (c)  Such guidelines rules shall provide for the

10  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

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  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)  Such guidelines may rules shall provide methods

  6  for evaluating the prospects for new investment and economic

  7  development in the area, including a review and evaluation of

  8  any previous state enterprise zones located in the area.

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

10  resolution authorizing an area to be an enterprise zone

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

12  unique identifying number to that resolution. The office

13  department shall provide the Department of Revenue and

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

15  approved, together with its identifying number.

16         (8)(a)  Notwithstanding s. 290.0055, any area existing

17  as a state enterprise zone as of December 30, 1994, which has

18  received at least $1 million in state community development

19  funds and at least $500,000 in federal community development

20  funds, which has less than 300 businesses located within the

21  boundaries of the enterprise zone, and which has been

22  designated by the United States Department of Agriculture as a

23  "Champion Community" shall be redesignated as a state

24  enterprise zone upon the creation of an enterprise zone

25  development agency pursuant to s. 290.0056 and the completion

26  of a strategic plan pursuant to s. 290.0057.

27         (b)  Such designation shall be in addition to the

28  limitations of state enterprise zone designation set out in

29  subsection (1).

30         (9)  The Office of Tourism, Trade, and Economic

31  Development may amend the boundaries of any enterprise zone

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  1  designated by the state pursuant to this section, consistent

  2  with the categories, criteria, and limitations imposed in this

  3  section upon the establishment of such enterprise zone and

  4  only if consistent with the determinations made in s.

  5  290.0058(2).

  6         (9)(10)  Before December 31, 1998, the governing body

  7  of a county in which an enterprise zone designated pursuant to

  8  paragraph (5)(b) is located may apply to the Office of

  9  Tourism, Trade, and Economic Development to amend the

10  boundaries of the enterprise zone for the purpose of replacing

11  areas not suitable for development.  The Office of Tourism,

12  Trade, and Economic Development shall approve the application

13  if it does not increase the overall size of the enterprise

14  zone.  Except that upon the request of the governing body of a

15  home rule charter county, or any county the government of

16  which has been consolidated with the government of one or more

17  municipalities in accordance with s. 9, Art. VIII of the State

18  Constitution of 1885, as preserved by s. 6(e), Art. VIII of

19  the State Constitution as revised in 1968 and subsequently

20  amended, the Office of Tourism, Trade, and Economic

21  Development may amend the boundaries of an area designated as

22  an enterprise zone upon the receipt of a resolution adopted by

23  such governing body describing the amended boundaries, so long

24  as the added area does not increase the overall size of the

25  expanded zone more than its original size or 20 square miles,

26  whichever is larger, and is consistent with the categories,

27  criteria, and limitations imposed by s. 290.0055.

28         (10)(11)  Before December 31, 1999, any county as

29  defined in s. 125.011(1) may create a satellite enterprise

30  zone not exceeding 3 square miles in area outside of and,

31  notwithstanding anything contained in s. 290.0055(4) or

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  1  elsewhere, in addition to the previously designated 20 square

  2  miles of enterprise zones. The Office of Tourism, Trade, and

  3  Economic Development shall amend the boundaries of the areas

  4  previously designated by any such county as enterprise zones

  5  upon the receipt of a resolution adopted by such governing

  6  body describing the satellite enterprise zone, as long as the

  7  additional area is consistent with the categories, criteria,

  8  and limitations imposed by s. 290.0055, provided that the

  9  20-square-mile limitation and the requirements imposed by s.

10  290.0055(4)(d) do not apply to such satellite enterprise zone.

11         Section 19.  Section 290.00676, Florida Statutes, is

12  created to read:

13         290.00676  Amendment of rural enterprise zone

14  boundaries.--Notwithstanding any other law, upon

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

16  Tourism, Trade, and Economic Development may approve requests

17  to amend the boundaries of rural enterprise zones as defined

18  in s. 290.004(8). Boundary amendments authorized by this

19  section are subject to the following requirements:

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

21  enterprise zone up to a maximum zone size of 20 square miles.

22         (2)  The amendment may increase the zone's number of

23  noncontiguous areas by one, if the additional noncontiguous

24  area has zero population. For purposes of this subsection, the

25  pervasive poverty criteria may be set aside for the addition

26  of a noncontiguous area.

27         (3)  The local enterprise zone development agency must

28  request the amendment from Enterprise Florida, Inc., prior to

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

30  sufficient information to allow the office to determine the

31

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

  2  enterprise zone.

  3         Section 20.  Section 290.00677, Florida Statutes, is

  4  created to read:

  5         290.00677  Rural enterprise zones; special

  6  qualifications.--

  7         (1)  Notwithstanding the enterprise zone residency

  8  requirements set out in s. 212.096(1)(c), eligible businesses

  9  as defined by s. 212.096(1)(a), located in rural enterprise

10  zones as defined by s. 290.004, may receive the basic minimum

11  credit provided under s. 212.096 for creating a new job and

12  hiring a person residing within the jurisdiction of a rural

13  county, as defined by s. 288.106(1)(r). All other provisions

14  of s. 212.096, including, but not limited to, those relating

15  to the award of enhanced credits, apply to such businesses.

16         (2)  Notwithstanding the enterprise zone residency

17  requirements set out in s. 220.03(1)(q), eligible businesses

18  as defined by s. 212.096(1)(a), located in rural enterprise

19  zones as defined in s. 290.004, may receive the basic minimum

20  credit provided under s. 220.181 for creating a new job and

21  hiring a person residing within the jurisdiction of a rural

22  county, as defined by s. 288.106(1)(r). All other provisions

23  of s. 220.181, including, but not limited to, those relating

24  to the award of enhanced credits apply to such businesses.

25         Section 21.  Section 290.00694, Florida Statutes, is

26  created to read:

27         290.00694  Enterprise zone designation for rural

28  communities.--An area designated as a rural champion community

29  under the Taxpayer Relief Act of 1997 or a community within a

30  designated rural area of critical economic concern under s.

31  288.0656 may submit an application to Enterprise Florida,

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  1  Inc., for review and recommendation to the office for

  2  designation as an enterprise zone. The application must be

  3  submitted by December 31, 2001. Notwithstanding the provisions

  4  of s. 290.0065 limiting the total number of enterprise zones

  5  designated and the number of enterprise zones within a

  6  population category, the Office of Tourism, Trade, and

  7  Economic Development may designate enterprise zones under this

  8  section. Upon completion of the requirements set out in s.

  9  290.0065(5)(d), the Office of Tourism, Trade, and Economic

10  Development shall establish the initial effective date of the

11  enterprise zones designated pursuant to this section. Only one

12  community in each county in a rural area of critical economic

13  concern may be designated as an enterprise zone.

14         Section 22.  Subsection (3) of section 290.007, Florida

15  Statutes, is amended to read:

16         290.007  State incentives available in enterprise

17  zones.--The following incentives are provided by the state to

18  encourage the revitalization of enterprise zones:

19         (3)  The community contribution tax credits provided in

20  ss. 212.08, 220.183, and 624.5105.

21         Section 23.  Subsection (7) is added to section

22  290.048, Florida Statutes, to read:

23         290.048  General powers of Department of Community

24  Affairs under ss. 290.0401-290.049.--The department has all

25  the powers necessary or appropriate to carry out the purposes

26  and provisions of the program, including the power to:

27         (7)  Establish advisory committees and solicit

28  participation in designing, administering, and evaluating the

29  program and in linking the program with other housing and

30  community development resources.

31

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  1         Section 24.  Section 290.049, Florida Statutes, is

  2  repealed.

  3         Section 25.  Subsection (4) of section 370.28, Florida

  4  Statutes, is repealed.

  5         Section 26.  Subsection (39) is added to section

  6  420.507, Florida Statutes, to read:

  7         420.507  Powers of the corporation.--The corporation

  8  shall have all the powers necessary or convenient to carry out

  9  and effectuate the purposes and provisions of this part,

10  including the following powers which are in addition to all

11  other powers granted by other provisions of this part:

12         (39)  To create recognition programs to honor

13  individuals, community-based development organizations, units

14  of local government, or others who have demonstrated the

15  ideals of community stewardship and increased access to

16  housing for low-income households, including economically

17  distressed areas. Such programs may incorporate certificates

18  of recognition by the Governor and may include presentation by

19  the Governor or his representative.

20         Section 27.  Subsections (1), (2), (4), and (5) of

21  section 624.5105, Florida Statutes, are amended to read:

22         624.5105  Community contribution tax credit;

23  authorization; limitations; eligibility and application

24  requirements; administration; definitions; expiration.--

25         (1)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--

26         (a)  There shall be allowed a credit of 50 percent of a

27  community contribution against any tax due for a calendar year

28  under s. 624.509 or s. 624.510.

29         (b)  No insurer shall receive more than $200,000 in

30  annual tax credits for all approved community contributions

31  made in any one year.

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  1         (c)  The total amount of tax credit which may be

  2  granted for all programs approved under this section, s.

  3  212.08(5)(q), and s. 220.183 is $20 $10 million annually.

  4         (d)  Each proposal for the granting of such tax credit

  5  requires the prior approval of the director.

  6         (e)  If the credit granted pursuant to this section is

  7  not fully used in any one year because of insufficient tax

  8  liability on the part of the insurer, the unused amount may be

  9  carried forward for a period not to exceed 5 years. The

10  carryover credit may be used in a subsequent year when the tax

11  imposed by s. 624.509 or s. 624.510 for such year exceeds the

12  credit under this section for such year.

13         (2)  ELIGIBILITY REQUIREMENTS.--

14         (a)  Each community contribution by an insurer must be

15  in a form specified in subsection (5).

16         (b)  Each community contribution must be reserved

17  exclusively for use in a project as defined in s.

18  220.03(1)(t).

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

20  sponsor," as which term is defined in s. 220.183(2)(c). as:

21         1.  A community action program;

22         2.  A community development corporation;

23         3.  A neighborhood housing services corporation;

24         4.  A local housing authority created pursuant to

25  chapter 421;

26         5.  A community redevelopment agency created pursuant

27  to s. 163.356;

28         6.  The Florida Industrial Development Corporation;

29         7.  A historic preservation district agency or

30  organization;

31         8.  A private industry council;

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  1         9.  An enterprise zone development agency created

  2  pursuant to s. 290.0057; or

  3         10.  Such other agency as the director may, from time

  4  to time, designate by rule.

  5

  6  In no event shall a contributing insurer have a financial

  7  interest in the eligible sponsor.

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

  9  as an enterprise zone or a Front Porch Community pursuant to

10  s. 14.2015(9)(b) s. 290.0065.  Any project designed to

11  construct or rehabilitate housing for low-income or

12  very-low-income households as defined in s. 420.9071(19) and

13  (28) low-income housing is exempt from the area requirement of

14  this paragraph.

15         (4)  ADMINISTRATION.--

16         (a)1.  The Office of Tourism, Trade, and Economic

17  Development is authorized to adopt all rules necessary to

18  administer this section, including rules for the approval or

19  disapproval of proposals by insurers.

20         2.  The decision of the director shall be in writing,

21  and, if approved, the proposal shall state the maximum credit

22  allowable to the insurer. A copy of the decision shall be

23  transmitted to the executive director of the Department of

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

25  the insurer.

26         3.  The office shall monitor all projects periodically,

27  in a manner consistent with available resources to ensure that

28  resources are utilized in accordance with this section;

29  however, each project shall be reviewed no less frequently

30  than once every 2 years.

31

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

  2  Development shall, in consultation with the Department of

  3  Community Affairs, the Florida Housing Finance Corporation,

  4  and the statewide and regional housing and financial

  5  intermediaries, market the availability of the community

  6  contribution tax credit program to community-based

  7  organizations.

  8         (b)  The Department of Revenue shall adopt any rules

  9  necessary to ensure the orderly implementation and

10  administration of this section.

11         (5)  DEFINITIONS.--For the purpose of this section:

12         (a)  "Community contribution" means the grant by an

13  insurer of any of the following items:

14         1.  Cash or other liquid assets.

15         2.  Real property.

16         3.  Goods or inventory.

17         4.  Other physical resources which are identified by

18  the department.

19         (b)  "Director" means the director of the Office of

20  Tourism, Trade, and Economic Development.

21         (c)  "Local government" means any county or

22  incorporated municipality in the state.

23         (d)  "Office" means the Office of Tourism, Trade, and

24  Economic Development.

25         (e)  "Project" means an activity as defined in s.

26  220.03(1)(t) or the provision of educational programs and

27  materials by an eligible sponsor. any activity undertaken by

28  an eligible sponsor, as defined in subsection (2), which is

29  designed to construct, improve, or substantially rehabilitate

30  housing or commercial, industrial, or public resources and

31

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  1  facilities or to improve entrepreneurial and job-development

  2  opportunities for low-income persons.

  3         Section 28.  Except as otherwise expressly provided in

  4  this act, this act shall take effect July 1, 2001.

  5

  6

  7

  8

  9

10

11

12

13

14

15

16

17

18

19

20

21

22

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  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                              SB 460

  3

  4  Through its primary changes, the committee substitute:

  5  --    Extends the community contribution tax credit provisions
          of the Enterprise Zone Program to the state sales tax,
  6        building upon the current community contribution tax
          credit provisions in the corporate income tax under ch.
  7        220, F.S., and the insurance premium tax under ch. 624,
          F.S.
  8
    --    Modifies the community contribution tax program by
  9        updating, clarifying, and expanding its current housing
          role, as well as by adding certain broadband width
10        investments to the "eligible project" list and adding
          educational programs and materials for a particular
11        museum project to the eligible project list.

12  --    Increases the total amount of tax credits that may be
          granted for all community contribution tax credits,
13        including sales tax, corporate income tax, and insurance
          premium tax, from $10 million annually to $20 million,
14        and allows a community with Front Porch Florida
          designation to use the community contribution tax
15        credits.

16  --    Revises the tax exemption for building materials used in
          the rehabilitation of real property located in an
17        enterprise zone to allow a refund applicant to submit
          the application within 90 days after rehabilitated
18        property is first subject to assessment; and to add
          nonprofit community-based organizations to the building
19        materials sales tax exemption created for governmental
          organizations and to add the State Housing Initiatives
20        Partnership Program to the sources of funds with which
          the building materials can be purchased.
21
    --    Clarifies the provision for business property used in an
22        enterprise zone by providing that an application for a
          refund must be submitted to the Department of Revenue
23        within 6 months after the tax is due on the business
          property that is purchased, and creates a minimum sales
24        price of $500 per unit on property to be claimed for the
          tax refund.
25
    --    Provides an incentive for part-time workers to be
26        upgraded to full-time if a new full-time job is created,
          for purposes of the enterprise zone jobs tax credit.
27
    --    Allows leased employees from an employee leasing company
28        to be considered new employees for the jobs tax credit
          provided they are employed for an average of at least 36
29        hours per week for more than 6 months.

30  --    Defines "new job has been created" for purposes of the
          jobs tax credit.
31
    --    Recreates a prior incentive to hire welfare transition
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  1        program participants in the job tax credit program and
          provides an additional incentive for higher wages.
  2
    --    Eliminates the multi-tier system in the rural job tax
  3        credit program; allows the credit to be used for smaller
          employers who may have increased the number of employees
  4        by 20 percent in comparison to prior years but not by 10
          employees as required in current law; and allows leased
  5        employees from an employee leasing company to be
          considered new employees for the rural job tax credit.
  6
    --    Allows federal rural enterprise communities to access
  7        the Rural Community Development Revolving Loan Fund
          Program.
  8
    --    Amends the Rural Economic Development Initiative (REDI)
  9        to require agencies to annually designate a high-level
          staff person to serve as the REDI representative and to
10        update the REDI list of agencies to include the Agency
          for Workforce Innovation, Workforce Florida, Inc., and
11        the Department of Juvenile Justice.

12  --    Amends the Quick Action Closing Fund by authorizing the
          fund to be used in distressed rural and urban
13        communities to allow for "privately developed critical
          rural infrastructure, or key facilities in economically
14        distressed urban or rural communities"; expands fund
          criteria to allow for privately developed infrastructure
15        that can be evaluated by the types of business
          activities and jobs that are stimulated by the
16        investment.

17  --    Clarifies the responsibilities of Enterprise Florida,
          Inc., to aggressively market Florida's rural communities
18        and distressed urban communities by adding specific
          mention of the need to market enterprise zones and to
19        fully utilize state incentive programs such as the
          Qualified Target Industry Tax Refund Program and the
20        Quick Action Closing Fund in distressed areas.

21  --    Revises the statute related to satellite enterprise
          zones, deleting the specific date by which an eligible
22        municipality must create a satellite enterprise zone.

23  --    Allows businesses in any newly created satellite zone to
          receive retroactively a refund of certain sales taxes
24        paid back to December 31, 1999, from the date the
          satellite zone is approved.
25
    --    Authorizes the Department of Community Affairs to merge
26        various advisory councils into one advisory committee to
          provide a more comprehensive approach to addressing
27        community needs and allowing for a broad and more
          diversified membership.
28
    --    Repeals a subsection of the statutes related to the
29        net-ban limitation enterprise zones which established
          conditions for use of incentives in net-ban zones, to
30        conform with other sections of this committee substitute
          that define net-ban zones as rural zones and establish
31        new conditions applicable to incentives for rural zones.

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