House Bill hb0743e1

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                                           HB 743, First Engrossed



  1                      A bill to be entitled

  2         An act relating to economic stimulus; amending

  3         s. 288.095, F.S.; revising terminology relating

  4         to certain incentive payment schedules;

  5         revising the due date and content for an annual

  6         report on incentives and reassigning

  7         responsibility for such report to Enterprise

  8         Florida, Inc.; amending s. 288.1045, F.S.;

  9         revising definitions; revising the required

10         elements of a tax refund agreement; providing

11         an exemption from mandatory loss of tax refund

12         eligibility and decertification resulting from

13         agreement breach in cases of uncontrollable

14         economic factors; prescribing a deadline for

15         applying for tax refunds; revising conditions

16         and procedures governing applications for tax

17         refunds; revising provisions relating to the

18         order authorizing a tax refund; authorizing the

19         office to grant extensions to certain

20         application and notification deadlines;

21         revising conditions under which a prorated tax

22         refund will be approved; providing for

23         calculation of such prorated refund; specifying

24         that the section does not create a presumption

25         a claim will be approved and paid; revising the

26         agencies with which the office may verify

27         information and to which the office may provide

28         information; expanding purposes for which the

29         office may seek assistance from certain

30         entities; amending s. 288.106, F.S., relating

31         to the tax refund program for qualified target


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                                           HB 743, First Engrossed



  1         industry businesses; revising requirements for

  2         application for certification as such business

  3         with respect to the number of current and new

  4         jobs at the business and projections by the

  5         Office of Tourism, Trade, and Economic

  6         Development of refunds based thereon; revising

  7         requirements relating to the tax refund

  8         agreement with respect to job creation and the

  9         time for filing of claims for refund; providing

10         for an exemption from mandatory loss of tax

11         refund eligibility and decertification

12         resulting from agreement breach in cases of

13         uncontrollable economic factors; revising

14         provisions relating to annual claims for

15         refund; authorizing an extension of time for

16         signing the tax refund agreement; providing an

17         application deadline; revising provisions

18         relating to the order authorizing a tax refund;

19         revising conditions under which a prorated tax

20         refund will be approved; providing for

21         calculation of such prorated tax refund;

22         specifying that the section does not create a

23         presumption that a claim will be approved and

24         paid; revising the agencies with which the

25         office may verify information and to which the

26         office may provide information; expanding

27         purposes for which the office may seek

28         assistance from certain entities; specifying

29         that certain appropriations may not be used for

30         any purpose other than the payment of specified

31         tax refunds; amending s. 213.053, F.S.;


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                                           HB 743, First Engrossed



  1         authorizing the Department of Revenue to

  2         provide certain information to the office;

  3         amending s. 288.0655, F.S.; providing for

  4         additional uses of moneys in the Rural

  5         Infrastructure Fund; providing an effective

  6         date.

  7

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

  9

10         Section 1.  Paragraphs (b) and (c) of subsection (3) of

11  section 288.095, Florida Statutes, are amended to read:

12         288.095  Economic Development Trust Fund.--

13         (3)

14         (b)  The total amount of tax refund claims approved for

15  payment by the Office of Tourism, Trade, and Economic

16  Development based on actual project performance may not exceed

17  the amount appropriated to the Economic Development Incentives

18  Account for such purposes for the fiscal year. In the event

19  the Legislature does not appropriate an amount sufficient to

20  satisfy estimates projections by the office for tax refunds

21  under ss. 288.1045 and 288.106 in a fiscal year, the Office of

22  Tourism, Trade, and Economic Development shall, not later than

23  July 15 of such year, determine the proportion of each refund

24  claim which shall be paid by dividing the amount appropriated

25  for tax refunds for the fiscal year by the estimated projected

26  total of refund claims for the fiscal year. The amount of each

27  claim for a tax refund shall be multiplied by the resulting

28  quotient. If, after the payment of all such refund claims,

29  funds remain in the Economic Development Incentives Account

30  for tax refunds, the office shall recalculate the proportion

31


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                                           HB 743, First Engrossed



  1  for each refund claim and adjust the amount of each claim

  2  accordingly.

  3         (c)  By December 31 September 30 of each year,

  4  Enterprise Florida, Inc., the Office of Tourism, Trade, and

  5  Economic Development shall submit a complete and detailed

  6  report to the Governor, the President of the Senate, the

  7  Speaker of the House of Representatives, and the director of

  8  the Office of Tourism, Trade, and Economic Development board

  9  of directors of Enterprise Florida, Inc., created under part

10  VII of this chapter, of all applications received,

11  recommendations made to the Office of Tourism, Trade, and

12  Economic Development, final decisions issued, tax refund

13  agreements executed, and tax refunds paid or other payments

14  made under all programs funded out of the Economic Development

15  Incentives Account, including analyses of benefits and costs,

16  types of projects supported, and employment and investment

17  created. Enterprise Florida, Inc., The Office of Tourism,

18  Trade, and Economic Development shall also include a separate

19  analysis of the impact of such tax refunds on state enterprise

20  zones designated pursuant to s. 290.0065, rural communities,

21  brownfield areas, and distressed urban communities. By

22  December 1 of each year, the board of directors of Enterprise

23  Florida, Inc., shall review and comment on the report, and the

24  board shall submit the report, together with the comments of

25  the board, to the Governor, the President of the Senate, and

26  the Speaker of the House of Representatives. The report must

27  discuss whether the authority and moneys appropriated by the

28  Legislature to the Economic Development Incentives Account

29  were managed and expended in a prudent, fiducially sound

30  manner. The Office of Tourism, Trade, and Economic Development

31


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                                           HB 743, First Engrossed



  1  shall assist Enterprise Florida, Inc., in the collection of

  2  data related to business performance and incentive payments.

  3         Section 2.  Section 288.1045, Florida Statutes, is

  4  amended to read:

  5         288.1045  Qualified defense contractor tax refund

  6  program.--

  7         (1)  DEFINITIONS.--As used in this section:

  8         (a)  "Consolidation of a Department of Defense

  9  contract" means the consolidation of one or more of an

10  applicant's facilities under one or more Department of Defense

11  contracts either from outside this state or from inside and

12  outside this state, into one or more of the applicant's

13  facilities inside this state.

14         (b)  "Average wage in the area" means the average of

15  all wages and salaries in the state, the county, or in the

16  standard metropolitan area in which the business unit is

17  located.

18         (c)  "Applicant" means any business entity that holds a

19  valid Department of Defense contract or any business entity

20  that is a subcontractor under a valid Department of Defense

21  contract or any business entity that holds a valid contract

22  for the reuse of a defense-related facility, including all

23  members of an affiliated group of corporations as defined in

24  s. 220.03(1)(b).

25         (d)  "Office" means the Office of Tourism, Trade, and

26  Economic Development.

27         (e)  "Department of Defense contract" means a

28  competitively bid Department of Defense contract or

29  subcontract or a competitively bid federal agency contract or

30  subcontract issued on behalf of the Department of Defense for

31  manufacturing, assembling, fabricating, research, development,


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                                           HB 743, First Engrossed



  1  or design with a duration of 2 or more years, but excluding

  2  any contract to provide goods, improvements to real or

  3  tangible property, or services directly to or for any

  4  particular military base or installation in this state. The

  5  term includes contracts for products for military use which

  6  contracts are approved by the United States Department of

  7  Defense or the United States Department of State.

  8         (f)  "New Department of Defense contract" means a

  9  Department of Defense contract entered into after the date

10  application for certification as a qualified applicant is made

11  and after January 1, 1994.

12         (g)  "Jobs" means full-time equivalent positions,

13  consistent with the use of such terms by the Agency for

14  Workforce Innovation Department of Labor and Employment

15  Security for the purpose of unemployment compensation tax,

16  resulting directly from a project in this state. This number

17  does not include temporary construction jobs involved with the

18  construction of facilities for the project.

19         (h)  "Nondefense production jobs" means employment

20  exclusively for activities that, directly or indirectly, are

21  unrelated to the Department of Defense.

22         (i)  "Project" means any business undertaking in this

23  state under a new Department of Defense contract,

24  consolidation of a Department of Defense contract, or

25  conversion of defense production jobs over to nondefense

26  production jobs or reuse of defense-related facilities.

27         (j)  "Qualified applicant" means an applicant that has

28  been approved by the director to be eligible for tax refunds

29  pursuant to this section.

30         (k)  "Director" means the director of the Office of

31  Tourism, Trade, and Economic Development.


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                                           HB 743, First Engrossed



  1         (l)  "Taxable year" means the same as in s.

  2  220.03(1)(z).

  3         (m)  "Fiscal year" means the fiscal year of the state.

  4         (n)  "Business unit" means an employing unit, as

  5  defined in s. 443.036, that is registered with the Agency for

  6  Workforce Innovation Department of Labor and Employment

  7  Security for unemployment compensation purposes or means a

  8  subcategory or division of an employing unit that is accepted

  9  by the Agency for Workforce Innovation Department of Labor and

10  Employment Security as a reporting unit.

11         (o)  "Local financial support" means funding from local

12  sources, public or private, which is paid to the Economic

13  Development Trust Fund and which is equal to 20 percent of the

14  annual tax refund for a qualified applicant. Local financial

15  support may include excess payments made to a utility company

16  under a designated program to allow decreases in service by

17  the utility company under conditions, regardless of when

18  application is made. A qualified applicant may not provide,

19  directly or indirectly, more than 5 percent of such funding in

20  any fiscal year. The sources of such funding may not include,

21  directly or indirectly, state funds appropriated from the

22  General Revenue Fund or any state trust fund, excluding tax

23  revenues shared with local governments pursuant to law.

24         (p)  "Contract for reuse of a defense-related facility"

25  means a contract with a duration of 2 or more years for the

26  use of a facility for manufacturing, assembling, fabricating,

27  research, development, or design of tangible personal

28  property, but excluding any contract to provide goods,

29  improvements to real or tangible property, or services

30  directly to or for any particular military base or

31  installation in this state. Such facility must be located


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                                           HB 743, First Engrossed



  1  within a port, as defined in s. 313.21, and have been occupied

  2  by a business entity that held a valid Department of Defense

  3  contract or occupied by any branch of the Armed Forces of the

  4  United States, within 1 year of any contract being executed

  5  for the reuse of such facility. A contract for reuse of a

  6  defense-related facility may not include any contract for

  7  reuse of such facility for any Department of Defense contract

  8  for manufacturing, assembling, fabricating, research,

  9  development, or design.

10         (q)  "Local financial support exemption option" means

11  the option to exercise an exemption from the local financial

12  support requirement available to any applicant whose project

13  is located in a county designated by the Rural Economic

14  Development Initiative, if the county commissioners of the

15  county in which the project will be located adopt a resolution

16  requesting that the applicant's project be exempt from the

17  local financial support requirement. Any applicant that

18  exercises this option is not eligible for more than 80 percent

19  of the total tax refunds allowed such applicant under this

20  section.

21         (2)  GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.--

22         (a)  There shall be allowed, from the Economic

23  Development Trust Fund, a refund to a qualified applicant for

24  the amount of eligible taxes certified by the director which

25  were paid by such qualified applicant. The total amount of

26  refunds for all fiscal years for each qualified applicant

27  shall be determined pursuant to subsection (3). The annual

28  amount of a refund to a qualified applicant shall be

29  determined pursuant to subsection (5).

30         (b)  A qualified applicant may not be qualified for any

31  project to receive more than $5,000 times the number of jobs


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                                           HB 743, First Engrossed



  1  provided in the tax refund agreement pursuant to subparagraph

  2  (4)(a)1. A qualified applicant may not receive refunds of more

  3  than 25 percent of the total tax refunds provided in the tax

  4  refund agreement pursuant to subparagraph (4)(a)1. in any

  5  fiscal year, provided that no qualified applicant may receive

  6  more than $2.5 million in tax refunds pursuant to this section

  7  in any fiscal year.

  8         (c)  A qualified applicant may not receive more than

  9  $7.5 million in tax refunds pursuant to this section in all

10  fiscal years.

11         (d)  Contingent upon an annual appropriation by the

12  Legislature, the director may approve not more in tax refunds

13  than the amount appropriated to the Economic Development Trust

14  Fund for tax refunds, for a fiscal year pursuant to subsection

15  (5) and s. 288.095.

16         (e)  For the first 6 months of each fiscal year, the

17  director shall set aside 30 percent of the amount appropriated

18  for refunds pursuant to this section by the Legislature to

19  provide tax refunds only to qualified applicants who employ

20  500 or fewer full-time employees in this state. Any

21  unencumbered funds remaining undisbursed from this set-aside

22  at the end of the 6-month period may be used to provide tax

23  refunds for any qualified applicants pursuant to this section.

24         (f)  After entering into a tax refund agreement

25  pursuant to subsection (4), a qualified applicant may receive

26  refunds from the Economic Development Trust Fund for the

27  following taxes due and paid by the qualified applicant

28  beginning with the applicant's first taxable year that begins

29  after entering into the agreement:

30         1.  Taxes on sales, use, and other transactions paid

31  pursuant to chapter 212.


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                                           HB 743, First Engrossed



  1         2.  Corporate income taxes paid pursuant to chapter

  2  220.

  3         3.  Intangible personal property taxes paid pursuant to

  4  chapter 199.

  5         4.  Emergency excise taxes paid pursuant to chapter

  6  221.

  7         5.  Excise taxes paid on documents pursuant to chapter

  8  201.

  9         6.  Ad valorem taxes paid, as defined in s.

10  220.03(1)(a) on June 1, 1996.

11

12  However, a qualified applicant may not receive a tax refund

13  pursuant to this section for any amount of credit, refund, or

14  exemption granted such contractor for any of such taxes. If a

15  refund for such taxes is provided by the office, which taxes

16  are subsequently adjusted by the application of any credit,

17  refund, or exemption granted to the qualified applicant other

18  than that provided in this section, the qualified applicant

19  shall reimburse the Economic Development Trust Fund for the

20  amount of such credit, refund, or exemption. A qualified

21  applicant must notify and tender payment to the office within

22  20 days after receiving a credit, refund, or exemption, other

23  than that provided in this section.

24         (g)  Any qualified applicant who fraudulently claims

25  this refund is liable for repayment of the refund to the

26  Economic Development Trust Fund plus a mandatory penalty of

27  200 percent of the tax refund which shall be deposited into

28  the General Revenue Fund. Any qualified applicant who

29  fraudulently claims this refund commits a felony of the third

30  degree, punishable as provided in s. 775.082, s. 775.083, or

31  s. 775.084.


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                                           HB 743, First Engrossed



  1         (h)  Funds made available pursuant to this section may

  2  not be expended in connection with the relocation of a

  3  business from one community to another community in this state

  4  unless the Office of Tourism, Trade, and Economic Development

  5  determines that without such relocation the business will move

  6  outside this state or determines that the business has a

  7  compelling economic rationale for the relocation which creates

  8  additional jobs.

  9         (3)  APPLICATION PROCESS; REQUIREMENTS; AGENCY

10  DETERMINATION.--

11         (a)  To apply for certification as a qualified

12  applicant pursuant to this section, an applicant must file an

13  application with the office which satisfies the requirements

14  of paragraphs (b) and (e), paragraphs (c) and (e), or

15  paragraphs (d) and (e). An applicant may not apply for

16  certification pursuant to this section after a proposal has

17  been submitted for a new Department of Defense contract, after

18  the applicant has made the decision to consolidate an existing

19  Department of Defense contract in this state for which such

20  applicant is seeking certification, or after the applicant has

21  made the decision to convert defense production jobs to

22  nondefense production jobs for which such applicant is seeking

23  certification.

24         (b)  Applications for certification based on the

25  consolidation of a Department of Defense contract or a new

26  Department of Defense contract must be submitted to the office

27  as prescribed by the office and must include, but are not

28  limited to, the following information:

29         1.  The applicant's federal employer identification

30  number, the applicant's Florida sales tax registration number,

31  and a notarized signature of an officer of the applicant.


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                                           HB 743, First Engrossed



  1         2.  The permanent location of the manufacturing,

  2  assembling, fabricating, research, development, or design

  3  facility in this state at which the project is or is to be

  4  located.

  5         3.  The Department of Defense contract numbers of the

  6  contract to be consolidated, the new Department of Defense

  7  contract number, or the "RFP" number of a proposed Department

  8  of Defense contract.

  9         4.  The date the contract was executed or is expected

10  to be executed, and the date the contract is due to expire or

11  is expected to expire.

12         5.  The commencement date for project operations under

13  the contract in this state.

14         6.  The number of net new full-time equivalent Florida

15  jobs included in this state which are or will be dedicated to

16  the project as of December 31 of each during the year and the

17  average wage of such jobs.

18         7.  The total number of full-time equivalent employees

19  employed by the applicant in this state.

20         8.  The percentage of the applicant's gross receipts

21  derived from Department of Defense contracts during the 5

22  taxable years immediately preceding the date the application

23  is submitted.

24         9.  The amount of:

25         a.  Taxes on sales, use, and other transactions paid

26  pursuant to chapter 212;

27         b.  Corporate income taxes paid pursuant to chapter

28  220;

29         c.  Intangible personal property taxes paid pursuant to

30  chapter 199;

31


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                                           HB 743, First Engrossed



  1         d.  Emergency excise taxes paid pursuant to chapter

  2  221;

  3         e.  Excise taxes paid on documents pursuant to chapter

  4  201; and

  5         f.  Ad valorem taxes paid

  6

  7  during the 5 fiscal years immediately preceding the date of

  8  the application, and the projected amounts of such taxes to be

  9  due in the 3 fiscal years immediately following the date of

10  the application.

11         10.  The estimated amount of tax refunds to be claimed

12  for in each fiscal year.

13         11.  A brief statement concerning the applicant's need

14  for tax refunds, and the proposed uses of such refunds by the

15  applicant.

16         12.  A resolution adopted by the county commissioners

17  of the county in which the project will be located, which

18  recommends the applicant be approved as a qualified applicant,

19  and which indicates that the necessary commitments of local

20  financial support for the applicant exist. Prior to the

21  adoption of the resolution, the county commission may review

22  the proposed public or private sources of such support and

23  determine whether the proposed sources of local financial

24  support can be provided or, for any applicant whose project is

25  located in a county designated by the Rural Economic

26  Development Initiative, a resolution adopted by the county

27  commissioners of such county requesting that the applicant's

28  project be exempt from the local financial support

29  requirement.

30         13.  Any additional information requested by the

31  office.


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                                           HB 743, First Engrossed



  1         (c)  Applications for certification based on the

  2  conversion of defense production jobs to nondefense production

  3  jobs must be submitted to the office as prescribed by the

  4  office and must include, but are not limited to, the following

  5  information:

  6         1.  The applicant's federal employer identification

  7  number, the applicant's Florida sales tax registration number,

  8  and a notarized signature of an officer of the applicant.

  9         2.  The permanent location of the manufacturing,

10  assembling, fabricating, research, development, or design

11  facility in this state at which the project is or is to be

12  located.

13         3.  The Department of Defense contract numbers of the

14  contract under which the defense production jobs will be

15  converted to nondefense production jobs.

16         4.  The date the contract was executed, and the date

17  the contract is due to expire or is expected to expire, or was

18  canceled.

19         5.  The commencement date for the nondefense production

20  operations in this state.

21         6.  The number of net new full-time equivalent Florida

22  jobs included in this state which are or will be dedicated to

23  the nondefense production project as of December 31 of each

24  during the year and the average wage of such jobs.

25         7.  The total number of full-time equivalent employees

26  employed by the applicant in this state.

27         8.  The percentage of the applicant's gross receipts

28  derived from Department of Defense contracts during the 5

29  taxable years immediately preceding the date the application

30  is submitted.

31         9.  The amount of:


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                                           HB 743, First Engrossed



  1         a.  Taxes on sales, use, and other transactions paid

  2  pursuant to chapter 212;

  3         b.  Corporate income taxes paid pursuant to chapter

  4  220;

  5         c.  Intangible personal property taxes paid pursuant to

  6  chapter 199;

  7         d.  Emergency excise taxes paid pursuant to chapter

  8  221;

  9         e.  Excise taxes paid on documents pursuant to chapter

10  201; and

11         f.  Ad valorem taxes paid

12

13  during the 5 fiscal years immediately preceding the date of

14  the application, and the projected amounts of such taxes to be

15  due in the 3 fiscal years immediately following the date of

16  the application.

17         10.  The estimated amount of tax refunds to be claimed

18  for in each fiscal year.

19         11.  A brief statement concerning the applicant's need

20  for tax refunds, and the proposed uses of such refunds by the

21  applicant.

22         12.  A resolution adopted by the county commissioners

23  of the county in which the project will be located, which

24  recommends the applicant be approved as a qualified applicant,

25  and which indicates that the necessary commitments of local

26  financial support for the applicant exist. Prior to the

27  adoption of the resolution, the county commission may review

28  the proposed public or private sources of such support and

29  determine whether the proposed sources of local financial

30  support can be provided or, for any applicant whose project is

31  located in a county designated by the Rural Economic


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                                           HB 743, First Engrossed



  1  Development Initiative, a resolution adopted by the county

  2  commissioners of such county requesting that the applicant's

  3  project be exempt from the local financial support

  4  requirement.

  5         13.  Any additional information requested by the

  6  office.

  7         (d)  Applications for certification based on a contract

  8  for reuse of a defense-related facility must be submitted to

  9  the office as prescribed by the office and must include, but

10  are not limited to, the following information:

11         1.  The applicant's Florida sales tax registration

12  number and a notarized signature of an officer of the

13  applicant.

14         2.  The permanent location of the manufacturing,

15  assembling, fabricating, research, development, or design

16  facility in this state at which the project is or is to be

17  located.

18         3.  The business entity holding a valid Department of

19  Defense contract or branch of the Armed Forces of the United

20  States that previously occupied the facility, and the date

21  such entity last occupied the facility.

22         4.  A copy of the contract to reuse the facility, or

23  such alternative proof as may be prescribed by the office that

24  the applicant is seeking to contract for the reuse of such

25  facility.

26         5.  The date the contract to reuse the facility was

27  executed or is expected to be executed, and the date the

28  contract is due to expire or is expected to expire.

29         6.  The commencement date for project operations under

30  the contract in this state.

31


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                                           HB 743, First Engrossed



  1         7.  The number of net new full-time equivalent Florida

  2  jobs included in this state which are or will be dedicated to

  3  the project as of December 31 of each during the year and the

  4  average wage of such jobs.

  5         8.  The total number of full-time equivalent employees

  6  employed by the applicant in this state.

  7         9.  The amount of:

  8         a.  Taxes on sales, use, and other transactions paid

  9  pursuant to chapter 212.

10         b.  Corporate income taxes paid pursuant to chapter

11  220.

12         c.  Intangible personal property taxes paid pursuant to

13  chapter 199.

14         d.  Emergency excise taxes paid pursuant to chapter

15  221.

16         e.  Excise taxes paid on documents pursuant to chapter

17  201.

18         f.  Ad valorem taxes paid during the 5 fiscal years

19  immediately preceding the date of the application, and the

20  projected amounts of such taxes to be due in the 3 fiscal

21  years immediately following the date of the application.

22         10.  The estimated amount of tax refunds to be claimed

23  for in each fiscal year.

24         11.  A brief statement concerning the applicant's need

25  for tax refunds, and the proposed uses of such refunds by the

26  applicant.

27         12.  A resolution adopted by the county commissioners

28  of the county in which the project will be located, which

29  recommends the applicant be approved as a qualified applicant,

30  and which indicates that the necessary commitments of local

31  financial support for the applicant exist. Prior to the


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                                           HB 743, First Engrossed



  1  adoption of the resolution, the county commission may review

  2  the proposed public or private sources of such support and

  3  determine whether the proposed sources of local financial

  4  support can be provided or, for any applicant whose project is

  5  located in a county designated by the Rural Economic

  6  Development Initiative, a resolution adopted by the county

  7  commissioners of such county requesting that the applicant's

  8  project be exempt from the local financial support

  9  requirement.

10         13.  Any additional information requested by the

11  office.

12         (e)  To qualify for review by the office, the

13  application of an applicant under paragraph (b), paragraph

14  (c), or paragraph (d) must, at a minimum, establish the

15  following to the satisfaction of the office:

16         1.  The jobs proposed to be provided under the

17  application, pursuant to subparagraph (b)6. or subparagraph

18  (c)6., must pay an estimated annual average wage equaling at

19  least 115 percent of the average wage in the area where the

20  project is to be located.

21         2.  The consolidation of a Department of Defense

22  contract must result in a net increase of at least 25 percent

23  in the number of jobs at the applicant's facilities in this

24  state or the addition of at least 80 jobs at the applicant's

25  facilities in this state.

26         3.  The conversion of defense production jobs to

27  nondefense production jobs must result in net increases in

28  nondefense employment at the applicant's facilities in this

29  state.

30         4.  The Department of Defense contract cannot allow the

31  business to include the costs of relocation or retooling in


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                                           HB 743, First Engrossed



  1  its base as allowable costs under a cost-plus, or similar,

  2  contract.

  3         5.  A business unit of the applicant must have derived

  4  not less than 60 70 percent of its gross receipts in this

  5  state from Department of Defense contracts over the

  6  applicant's last fiscal year, and must have derived not less

  7  than an average of 60 80 percent of its gross receipts in this

  8  state from Department of Defense contracts over the 5 years

  9  preceding the date an application is submitted pursuant to

10  this section. This subparagraph does not apply to any

11  application for certification based on a contract for reuse of

12  a defense-related facility.

13         6.  The reuse of a defense-related facility must result

14  in the creation of at least 100 jobs at such facility.

15         (f)  Each application meeting the requirements of

16  paragraphs (b) and (e), paragraphs (c) and (e), or paragraphs

17  (d) and (e) must be submitted to the office for a

18  determination of eligibility. The office shall review,

19  evaluate, and score each application based on, but not limited

20  to, the following criteria:

21         1.  Expected contributions to the state strategic

22  economic development plan adopted by Enterprise Florida, Inc.,

23  taking into account the extent to which the project

24  contributes to the state's high-technology base, and the

25  long-term impact of the project and the applicant on the

26  state's economy.

27         2.  The economic benefit of the jobs created or

28  retained by the project in this state, taking into account the

29  cost and average wage of each job created or retained, and the

30  potential risk to existing jobs.

31


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                                           HB 743, First Engrossed



  1         3.  The amount of capital investment to be made by the

  2  applicant in this state.

  3         4.  The local commitment and support for the project

  4  and applicant.

  5         5.  The impact of the project on the local community,

  6  taking into account the unemployment rate for the county where

  7  the project will be located.

  8         6.  The dependence of the local community on the

  9  defense industry.

10         7.  The impact of any tax refunds granted pursuant to

11  this section on the viability of the project and the

12  probability that the project will occur in this state if such

13  tax refunds are granted to the applicant, taking into account

14  the expected long-term commitment of the applicant to economic

15  growth and employment in this state.

16         8.  The length of the project, or the expected

17  long-term commitment to this state resulting from the project.

18         (g)  The office shall forward its written findings and

19  evaluation on each application meeting the requirements of

20  paragraphs (b) and (e), paragraphs (c) and (e), or paragraphs

21  (d) and (e) to the director within 60 calendar days after of

22  receipt of a complete application. The office shall notify

23  each applicant when its application is complete, and when the

24  60-day period begins. In its written report to the director,

25  the office shall specifically address each of the factors

26  specified in paragraph (f), and shall make a specific

27  assessment with respect to the minimum requirements

28  established in paragraph (e). The office shall include in its

29  report projections of the tax refunds the applicant would be

30  eligible to receive refund claims that will be sought by the

31  applicant in each fiscal year based on the creation and


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                                           HB 743, First Engrossed



  1  maintenance of the net new Florida jobs specified in

  2  subparagraph (b)6., subparagraph (c)6., or subparagraph (d)7.

  3  as of December 31 of the preceding state fiscal year

  4  information submitted in the application.

  5         (h)  Within 30 days after receipt of the office's

  6  findings and evaluation, the director shall enter a final

  7  order that either approves or disapproves an application. The

  8  decision must be in writing and provide the justifications for

  9  either approval or disapproval. If appropriate, the director

10  shall enter into a written agreement with the qualified

11  applicant pursuant to subsection (4).

12         (i)  The director may not enter any final order that

13  certifies any applicant as a qualified applicant when the

14  value of tax refunds to be included in that final order

15  exceeds the available amount of authority to enter final

16  orders as determined in s. 288.095(3). A final order that

17  approves an application must specify the maximum amount of a

18  tax refund that is to be available to the contractor for in

19  each fiscal year and the total amount of tax refunds for all

20  fiscal years.

21         (j)  This section does not create a presumption that an

22  applicant should receive any tax refunds under this section.

23         (4)  QUALIFIED DEFENSE CONTRACTOR TAX REFUND

24  AGREEMENT.--

25         (a)  A qualified applicant shall enter into a written

26  agreement with the office containing, but not limited to, the

27  following:

28         1.  The total number of full-time equivalent jobs in

29  this state that are or will be dedicated to the qualified

30  applicant's project, the average wage of such jobs, the

31  definitions that will apply for measuring the achievement of


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                                           HB 743, First Engrossed



  1  these terms during the pendency of the agreement, and a time

  2  schedule or plan for when such jobs will be in place and

  3  active in this state. This information must be the same as the

  4  information contained in the application submitted by the

  5  contractor pursuant to subsection (3).

  6         2.  The maximum amount of a refund that the qualified

  7  applicant is eligible to receive for in each fiscal year,

  8  based on the job creation or retention and maintenance

  9  schedule specified in subparagraph 1.

10         3.  An agreement with the office allowing the office to

11  review and verify the financial and personnel records of the

12  qualified applicant to ascertain whether the qualified

13  applicant is complying with the requirements of this section.

14         4.  The date by after which, in each fiscal year, the

15  qualified applicant may file a an annual claim pursuant to

16  subsection (5) to be considered to receive a tax refund in the

17  following fiscal year.

18         5.  That local financial support shall be annually

19  available and will be paid to the Economic Development Trust

20  Fund.

21         (b)  Compliance with the terms and conditions of the

22  agreement is a condition precedent for receipt of tax refunds

23  each year. The failure to comply with the terms and conditions

24  of the agreement shall result in the loss of eligibility for

25  receipt of all tax refunds previously authorized pursuant to

26  this section, and the revocation of the certification as a

27  qualified applicant by the director, unless the applicant is

28  eligible to receive and elects to accept a prorated refund

29  under paragraph (5)(g) or the office grants the applicant an

30  economic-stimulus exemption.

31


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                                           HB 743, First Engrossed



  1         1.  A qualified applicant may submit, in writing, a

  2  request to the office for an economic-stimulus exemption. The

  3  request must provide quantitative evidence demonstrating how

  4  negative economic conditions in the applicant's industry

  5  prevented the applicant from complying with the terms and

  6  conditions of its tax refund agreement.

  7         2.  Upon receipt of a request under subparagraph 1.,

  8  the director shall have 45 days to notify the requesting

  9  applicant, in writing, whether its exemption has been granted

10  or denied. In determining whether an exemption should be

11  granted, the director shall consider the extent to which

12  negative economic conditions in the requesting applicant's

13  industry prevented the applicant from complying with the terms

14  and conditions of its tax refund agreement.

15         3.  As a condition for receiving a prorated refund

16  under paragraph (5)(g) or an economic-stimulus exemption under

17  this paragraph, a qualified applicant must agree to

18  renegotiate its tax refund agreement with the office to, at a

19  minimum, ensure that the terms of the agreement comply with

20  current law and office procedures governing application for

21  and award of tax refunds. Upon approving the award of a

22  prorated refund or granting an economic-stimulus exemption,

23  the office shall renegotiate the tax refund agreement with the

24  applicant as required by this subparagraph. When amending the

25  agreement of an applicant receiving an economic-stimulus

26  exemption, the office may extend the duration of the agreement

27  for a period not to exceed 1 year.

28         4.  A qualified applicant may submit a request for an

29  economic-stimulus exemption to the office in lieu of any tax

30  refund claim scheduled to be submitted after June 30, 2001,

31  but before July 1, 2003.


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                                           HB 743, First Engrossed



  1         5.  A qualified applicant that receives an

  2  economic-stimulus exemption may not receive a tax refund for

  3  the period covered by the exemption.

  4         (c)  The agreement shall be signed by the director and

  5  the authorized officer of the qualified applicant.

  6         (d)  The agreement must contain the following legend,

  7  clearly printed on its face in bold type of not less than 10

  8  points:

  9

10         "This agreement is neither a general obligation

11         of the State of Florida, nor is it backed by

12         the full faith and credit of the State of

13         Florida. Payment of tax refunds are conditioned

14         on and subject to specific annual

15         appropriations by the Florida Legislature of

16         funds sufficient to pay amounts authorized in

17         s. 288.1045, Florida Statutes."

18

19         (5)  ANNUAL CLAIM FOR REFUND FROM A QUALIFIED DEFENSE

20  CONTRACTOR.--

21         (a)  To be eligible to claim any scheduled tax refund,

22  qualified applicants who have entered into a written agreement

23  with the office pursuant to subsection (4) and who have

24  entered into a valid new Department of Defense contract,

25  commenced the consolidation of a Department of Defense

26  contract, commenced the conversion of defense production jobs

27  to nondefense production jobs, or who have entered into a

28  valid contract for reuse of a defense-related facility must

29  may apply by January 31 of once each fiscal year to the office

30  for tax refunds scheduled to be paid from the appropriation

31  for the fiscal year that begins on July 1 following the


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                                           HB 743, First Engrossed



  1  January 31 claims-submission date. The office may, upon

  2  written request, grant a 30-day extension of the filing date.

  3  The application must be made on or after the date contained in

  4  the agreement entered into pursuant to subsection (4) and must

  5  include a notarized signature of an officer of the applicant.

  6         (b)  The claim for refund by the qualified applicant

  7  must include a copy of all receipts pertaining to the payment

  8  of taxes for which a refund is sought, and data related to

  9  achieving each performance item contained in the tax refund

10  agreement pursuant to subsection (4). The amount requested as

11  a tax refund may not exceed the amount for the relevant fiscal

12  year in the written agreement entered pursuant to subsection

13  (4).

14         (c)  A tax refund may not be approved for any qualified

15  applicant unless local financial support has been paid to the

16  Economic Development Trust Fund for in that refund fiscal

17  year. If the local financial support is less than 20 percent

18  of the approved tax refund, the tax refund shall be reduced.

19  The tax refund paid may not exceed 5 times the local financial

20  support received. Funding from local sources includes tax

21  abatement under s. 196.1995 provided to a qualified applicant.

22  The amount of any tax refund for an applicant approved under

23  this section shall be reduced by the amount of any such tax

24  abatement, and the limitations in subsection (2) and paragraph

25  (3)(h) shall be reduced by the amount of any such tax

26  abatement. A report listing all sources of the local financial

27  support shall be provided to the office when such support is

28  paid to the Economic Development Trust Fund.

29         (d)  The director, with assistance from the office, the

30  Department of Revenue, and the Agency for Workforce Innovation

31  Department of Labor and Employment Security, shall, by June 30


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                                           HB 743, First Engrossed



  1  following the scheduled date for submitting the tax refund

  2  claim, specify by written order the approval or disapproval of

  3  the tax refund claim and, if approved, determine the amount of

  4  the tax refund that is authorized to be paid to for the

  5  qualified applicant for the fiscal year in a written final

  6  order within 30 days after the date the claim for the annual

  7  tax refund is received by the office. The office may grant an

  8  extension of this date upon the request of the qualified

  9  applicant for the purpose of filing additional information in

10  support of the claim.

11         (e)  The total amount of tax refunds approved by the

12  director under this section in any fiscal year may not exceed

13  the amount appropriated to the Economic Development Trust Fund

14  for such purposes for the fiscal year. If the Legislature does

15  not appropriate an amount sufficient to satisfy projections by

16  the office for tax refunds in a fiscal year, the director

17  shall, not later than July 15 of such year, determine the

18  proportion of each refund claim which shall be paid by

19  dividing the amount appropriated for tax refunds for the

20  fiscal year by the projected total amount of refund claims for

21  the fiscal year. The amount of each claim for a tax refund

22  shall be multiplied by the resulting quotient. If, after the

23  payment of all such refund claims, funds remain in the

24  Economic Development Trust Fund for tax refunds, the director

25  shall recalculate the proportion for each refund claim and

26  adjust the amount of each claim accordingly.

27         (f)  Upon approval of the tax refund pursuant to

28  paragraphs (c) and (d), the Comptroller shall issue a warrant

29  for the amount included in the final order. In the event of

30  any appeal of the final order, the Comptroller may not issue a

31


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                                           HB 743, First Engrossed



  1  warrant for a refund to the qualified applicant until the

  2  conclusion of all appeals of the final order.

  3         (g)  A prorated tax refund, less a 5 percent penalty,

  4  shall be approved for a qualified applicant provided all other

  5  applicable requirements have been satisfied and the applicant

  6  proves to the satisfaction of the director that it has

  7  achieved at least 80 percent of its projected employment and

  8  that the average wage paid by the applicant is at least 90

  9  percent of the average wage specified in the tax refund

10  agreement, but in no case less than 115 percent of the average

11  private-sector wage in the area available at the time of

12  certification. The prorated tax refund shall be calculated by

13  multiplying the tax refund amount for which the qualified

14  applicant would have been eligible, if all applicable

15  requirements had been satisfied, by the percentage of the

16  average employment specified in the tax refund agreement which

17  was achieved, and by the percentage of the average wages

18  specified in the tax refund agreement which was achieved.

19         (h)  This section does not create a presumption that a

20  tax refund claim will be approved and paid.

21         (6)  ADMINISTRATION.--

22         (a)  The office may adopt rules pursuant to chapter 120

23  for the administration of this section.

24         (b)  The office may verify information provided in any

25  claim submitted for tax credits under this section with regard

26  to employment and wage levels or the payment of the taxes with

27  the appropriate agency or authority including the Department

28  of Revenue, the Department of Labor and Employment Security,

29  or any local government or authority.

30         (c)  To facilitate the process of monitoring and

31  auditing applications made under this program, the office may


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                                           HB 743, First Engrossed



  1  provide a list of qualified applicants to the Department of

  2  Revenue, to the Agency for Workforce Innovation Department of

  3  Labor and Employment Security, or to any local government or

  4  authority. The office may request the assistance of said

  5  entities with respect to monitoring jobs, wages, and the

  6  payment of the taxes listed in subsection (2).

  7         (d)  By December 1 of each year, the office shall

  8  submit a complete and detailed report to the Governor, the

  9  President of the Senate, and the Speaker of the House of

10  Representatives of all tax refunds paid under this section,

11  including analyses of benefits and costs, types of projects

12  supported, employment and investment created, geographic

13  distribution of tax refunds granted, and minority business

14  participation.  The report must indicate whether the moneys

15  appropriated by the Legislature to the qualified applicant tax

16  refund program were expended in a prudent, fiducially sound

17  manner.

18         (e)  Funds specifically appropriated for the tax refund

19  program under this section may not be used for any purpose

20  other than the payment of tax refunds authorized by this

21  section.

22         (7)  EXPIRATION.--An applicant may not be certified as

23  qualified under this section after June 30, 2004.

24         Section 3.  Paragraphs (a) and (d) of subsection (3),

25  paragraphs (a), (b), and (c) of subsection (4), and

26  subsections (5) and (6) of section 288.106, Florida Statutes,

27  are amended, and subsection (7) of said section is reenacted,

28  to read:

29         288.106  Tax refund program for qualified target

30  industry businesses.--

31         (3)  APPLICATION AND APPROVAL PROCESS.--


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                                           HB 743, First Engrossed



  1         (a)  To apply for certification as a qualified target

  2  industry business under this section, the business must file

  3  an application with the office before the business has made

  4  the decision to locate a new business in this state or before

  5  the business had made the decision to expand an existing

  6  business in this state. The application shall include, but is

  7  not limited to, the following information:

  8         1.  The applicant's federal employer identification

  9  number and the applicant's state sales tax registration

10  number.

11         2.  The permanent location of the applicant's facility

12  in this state at which the project is or is to be located.

13         3.  A description of the type of business activity or

14  product covered by the project, including four-digit SIC codes

15  for all activities included in the project.

16         4.  The number of net new full-time equivalent Florida

17  jobs at the qualified target industry business as of December

18  31 of each year included in this state that are or will be

19  dedicated to the project and the average wage of those jobs.

20  If more than one type of business activity or product is

21  included in the project, the number of jobs and average wage

22  for those jobs must be separately stated for each type of

23  business activity or product.

24         5.  The total number of full-time equivalent employees

25  employed by the applicant in this state.

26         6.  The anticipated commencement date of the project.

27         7.  A brief statement concerning the role that the tax

28  refunds requested will play in the decision of the applicant

29  to locate or expand in this state.

30

31


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                                           HB 743, First Engrossed



  1         8.  An estimate of the proportion of the sales

  2  resulting from the project that will be made outside this

  3  state.

  4         9.  A resolution adopted by the governing board of the

  5  county or municipality in which the project will be located,

  6  which resolution recommends that certain types of businesses

  7  be approved as a qualified target industry business and states

  8  that the commitments of local financial support necessary for

  9  the target industry business exist. In advance of the passage

10  of such resolution, the office may also accept an official

11  letter from an authorized local economic development agency

12  that endorses the proposed target industry project and pledges

13  that sources of local financial support for such project

14  exist. For the purposes of making pledges of local financial

15  support under this subsection, the authorized local economic

16  development agency shall be officially designated by the

17  passage of a one-time resolution by the local governing

18  authority.

19         10.  Any additional information requested by the

20  office.

21         (d)  The office shall forward its written findings and

22  evaluation concerning each application meeting the

23  requirements of paragraph (b) to the director within 45

24  calendar days after receipt of a complete application. The

25  office shall notify each target industry business when its

26  application is complete, and of the time when the 45-day

27  period begins. In its written report to the director, the

28  office shall specifically address each of the factors

29  specified in paragraph (c) and shall make a specific

30  assessment with respect to the minimum requirements

31  established in paragraph (b). The office shall include in its


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                                           HB 743, First Engrossed



  1  report projections of the tax refunds the business would be

  2  eligible to receive refund claim that will be sought by the

  3  target industry business in each fiscal year based on the

  4  creation and maintenance of the net new Florida jobs specified

  5  in subparagraph (a)4. as of December 31 of the preceding state

  6  fiscal year information submitted in the application.

  7         (4)  TAX REFUND AGREEMENT.--

  8         (a)  Each qualified target industry business must enter

  9  into a written agreement with the office which specifies, at a

10  minimum:

11         1.  The total number of full-time equivalent jobs in

12  this state that will be dedicated to the project, the average

13  wage of those jobs, the definitions that will apply for

14  measuring the achievement of these terms during the pendency

15  of the agreement, and a time schedule or plan for when such

16  jobs will be in place and active in this state. This

17  information must be the same as the information contained in

18  the application submitted by the business under subsection

19  (3).

20         2.  The maximum amount of tax refunds which the

21  qualified target industry business is eligible to receive on

22  the project and the maximum amount of a tax refund that the

23  qualified target industry business is eligible to receive for

24  in each fiscal year, based on the job creation and maintenance

25  schedule specified in subparagraph 1.

26         3.  That the office may review and verify the financial

27  and personnel records of the qualified target industry

28  business to ascertain whether that business is in compliance

29  with this section.

30         4.  The date by after which, in each fiscal year, the

31  qualified target industry business may file a an annual claim


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                                           HB 743, First Engrossed



  1  under subsection (5) to be considered to receive a tax refund

  2  in the following fiscal year.

  3         5.  That local financial support will be annually

  4  available and will be paid to the account. The director may

  5  not enter into a written agreement with a qualified target

  6  industry business if the local financial support resolution is

  7  not passed by the local governing authority within 90 days

  8  after he or she has issued the letter of certification under

  9  subsection (3).

10         (b)  Compliance with the terms and conditions of the

11  agreement is a condition precedent for the receipt of a tax

12  refund each year. The failure to comply with the terms and

13  conditions of the tax refund agreement results in the loss of

14  eligibility for receipt of all tax refunds previously

15  authorized under this section and the revocation by the

16  director of the certification of the business entity as a

17  qualified target industry business, unless the business is

18  eligible to receive and elects to accept a prorated refund

19  under paragraph (5)(d) or the office grants the business an

20  economic-stimulus exemption.

21         1.  A qualified target industry business may submit, in

22  writing, a request to the office for an economic-stimulus

23  exemption. The request must provide quantitative evidence

24  demonstrating how negative economic conditions in the

25  business's industry prevented the business from complying with

26  the terms and conditions of its tax refund agreement.

27         2.  Upon receipt of a request under subparagraph 1.,

28  the director shall have 45 days to notify the requesting

29  business, in writing, whether its exemption has been granted

30  or denied. In determining whether an exemption should be

31  granted, the director shall consider the extent to which


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                                           HB 743, First Engrossed



  1  negative economic conditions in the requesting business's

  2  industry prevented the business from complying with the terms

  3  and conditions of its tax refund agreement.

  4         3.  As a condition for receiving a prorated refund

  5  under paragraph (5)(d) or an economic-stimulus exemption under

  6  this paragraph, a qualified target industry business must

  7  agree to renegotiate its tax refund agreement with the office

  8  to, at a minimum, ensure that the terms of the agreement

  9  comply with current law and office procedures governing

10  application for and award of tax refunds. Upon approving the

11  award of a prorated refund or granting an economic-stimulus

12  exemption, the office shall renegotiate the tax refund

13  agreement with the business as required by this subparagraph.

14  When amending the agreement of a business receiving an

15  economic-stimulus exemption, the office may extend the

16  duration of the agreement for a period not to exceed 1 year.

17         4.  A qualified target industry business may submit a

18  request for an economic-stimulus exemption to the office in

19  lieu of any tax refund claim scheduled to be submitted after

20  June 30, 2001, but before July 1, 2003.

21         5.  A qualified target industry business that receives

22  an economic-stimulus exemption may not receive a tax refund

23  for the period covered by the exemption.

24         (c)  The agreement must be signed by the director and

25  by an authorized officer of the qualified target industry

26  business within 120 days after the issuance of the letter of

27  certification under subsection (3), but not before passage and

28  receipt of the resolution of local financial support. The

29  office may grant an extension of this period at the written

30  request of the qualified target industry business.

31         (5)  ANNUAL CLAIM FOR REFUND.--


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                                           HB 743, First Engrossed



  1         (a)  To be eligible to claim any scheduled tax refund,

  2  a qualified target industry business that has entered into a

  3  tax refund agreement with the office under subsection (4) must

  4  may apply by January 31 of once each fiscal year to the office

  5  for the a tax refund scheduled to be paid from the

  6  appropriation for the fiscal year that begins on July 1

  7  following the January 31 claims-submission date. The office

  8  may, upon written request, grant a 30-day extension of the

  9  filing date. The application must be made on or after the date

10  specified in that agreement.

11         (b)  The claim for refund by the qualified target

12  industry business must include a copy of all receipts

13  pertaining to the payment of taxes for which the refund is

14  sought and data related to achievement of each performance

15  item specified in the tax refund agreement. The amount

16  requested as a tax refund may not exceed the amount specified

17  for the relevant that fiscal year in that agreement.

18         (c)  A tax refund may not be approved for a qualified

19  target industry business unless the required local financial

20  support has been paid into the account for in that refund

21  fiscal year. If the local financial support provided is less

22  than 20 percent of the approved tax refund, the tax refund

23  must be reduced. In no event may the tax refund exceed an

24  amount that is equal to 5 times the amount of the local

25  financial support received. Further, funding from local

26  sources includes any tax abatement granted to that business

27  under s. 196.1995 or the appraised market value of municipal

28  or county land conveyed or provided at a discount to that

29  business. The amount of any tax refund for such business

30  approved under this section must be reduced by the amount of

31  any such tax abatement granted or the value of the land


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                                           HB 743, First Engrossed



  1  granted; and the limitations in subsection (2) and paragraph

  2  (3)(f) must be reduced by the amount of any such tax abatement

  3  or the value of the land granted. A report listing all sources

  4  of the local financial support shall be provided to the office

  5  when such support is paid to the account.

  6         (d)  A prorated tax refund, less a 5-percent penalty,

  7  shall be approved for a qualified target industry business

  8  provided all other applicable requirements have been satisfied

  9  and the business proves to the satisfaction of the director

10  that it has achieved at least 80 percent of its projected

11  employment and that the average wage paid by the business is

12  at least 90 percent of the average wage specified in the tax

13  refund agreement, but in no case less than 115 percent of the

14  average private-sector wage in the area available at the time

15  of certification, or 150 percent or 200 percent of the average

16  private-sector wage if the business requested the additional

17  per-job tax refund authorized in paragraph (2)(b) for wages

18  above those levels. The prorated tax refund shall be

19  calculated by multiplying the tax refund amount for which the

20  qualified target industry business would have been eligible,

21  if all applicable requirements had been satisfied, by the

22  percentage of the average employment specified in the tax

23  refund agreement which was achieved, and by the percentage of

24  the average wages specified in the tax refund agreement which

25  was achieved.

26         (e)  The director, with such assistance as may be

27  required from the office, the Department of Revenue, or the

28  Agency for Workforce Innovation Department of Labor and

29  Employment Security, shall, by June 30 following the scheduled

30  date for submission of the tax-refund claim, specify by

31  written final order the approval or disapproval of the tax


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                                           HB 743, First Engrossed



  1  refund claim and, if approved, the amount of the tax refund

  2  that is authorized to be paid to for the qualified target

  3  industry business for the fiscal year within 30 days after the

  4  date that the claim for the annual tax refund is received by

  5  the office. The office may grant an extension of this date

  6  upon the request of the qualified target industry business for

  7  the purpose of filing additional information in support of the

  8  claim.

  9         (f)  The total amount of tax refund claims approved by

10  the director under this section in any fiscal year must not

11  exceed the amount authorized under s. 288.095(3).

12         (g)  This section does not create a presumption that a

13  tax refund claim will be approved and paid.

14         (h)(g)  Upon approval of the tax refund under

15  paragraphs (c), (d), and (e), the Comptroller shall issue a

16  warrant for the amount specified in the final order. If the

17  final order is appealed, the Comptroller may not issue a

18  warrant for a refund to the qualified target industry business

19  until the conclusion of all appeals of that order.

20         (6)  ADMINISTRATION.--

21         (a)  The office is authorized to verify information

22  provided in any claim submitted for tax credits under this

23  section with regard to employment and wage levels or the

24  payment of the taxes to the appropriate agency or authority,

25  including the Department of Revenue, the Agency for Workforce

26  Innovation Department of Labor and Employment Security, or any

27  local government or authority.

28         (b)  To facilitate the process of monitoring and

29  auditing applications made under this program, the office may

30  provide a list of qualified target industry businesses to the

31  Department of Revenue, to the Agency for Workforce Innovation


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                                           HB 743, First Engrossed



  1  Department of Labor and Employment Security, or to any local

  2  government or authority. The office may request the assistance

  3  of those entities with respect to monitoring jobs, wages, and

  4  the payment of the taxes listed in subsection (2).

  5         (c)  Funds specifically appropriated for the tax refund

  6  program for qualified target industry businesses may not be

  7  used for any purpose other than the payment of tax refunds

  8  authorized by this section.

  9         (7)  EXPIRATION.--This section expires June 30, 2004.

10         Section 4.  Paragraph (k) of subsection (7) of section

11  213.053, Florida Statutes, is amended to read:

12         213.053  Confidentiality and information sharing.--

13         (7)  Notwithstanding any other provision of this

14  section, the department may provide:

15         (k)1.  Payment information relative to chapters 199,

16  201, 212, 220, and 221 to the Office of Tourism, Trade, and

17  Economic Development, or agents of the office, in its

18  administration of the tax refund program for qualified defense

19  contractors authorized by s. 288.1045.

20         2.  Information relative to s. 624.509 and chapters

21  199, 201, 220, and 221 to the Office of Tourism, Trade, and

22  Economic Development, or agents of the office, in the

23  administration of the tax refund program for qualified target

24  industry businesses authorized by s. 288.106.

25         3.  Information relative to credits taken by businesses

26  under s. 220.191 and exemptions or refunds received by

27  businesses under s. 212.08(5)(j) to the Office of Tourism,

28  Trade, and Economic Development, or agents of the office, in

29  its administration and evaluation of the capital investment

30  tax credit program authorized in s. 220.191 and the

31


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                                           HB 743, First Engrossed



  1  semiconductor, defense, and space tax exemption program

  2  authorized in s. 212.08(5)(j).

  3

  4  Disclosure of information under this subsection shall be

  5  pursuant to a written agreement between the executive director

  6  and the agency.  Such agencies, governmental or

  7  nongovernmental, shall be bound by the same requirements of

  8  confidentiality as the Department of Revenue.  Breach of

  9  confidentiality is a misdemeanor of the first degree,

10  punishable as provided by s. 775.082 or s. 775.083.

11         Section 5.  Paragraphs (a) and (b) of subsection (2) of

12  section 288.0655, Florida Statutes, are amended to read:

13         288.0655  Rural Infrastructure Fund.--

14         (2)(a)  Funds appropriated by the Legislature shall be

15  distributed by the office through a grant programs program

16  that maximize maximizes the use of federal, local, and private

17  resources, including, but not limited to, those available

18  under the Small Cities Community Development Block Grant

19  Program.

20         (b)  To facilitate access of rural communities and

21  rural areas of critical economic concern as defined by the

22  Rural Economic Development Initiative to infrastructure

23  funding programs of the Federal Government, such as those

24  offered by the United States Department of Agriculture and the

25  United States Department of Commerce, and state programs,

26  including those offered by Rural Economic Development

27  Initiative agencies, and to facilitate local government or

28  private infrastructure funding efforts, the office may award

29  grants to applicants for such federal programs for up to 30

30  percent of the total infrastructure project cost. Eligible

31  projects must be related to specific job creation or job


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                                           HB 743, First Engrossed



  1  retention creating opportunities. Eligible projects may also

  2  include improving any inadequate infrastructure that has

  3  resulted in regulatory action that prohibits economic or

  4  community growth or reducing the costs to community users of

  5  proposed infrastructure improvements that exceed such costs in

  6  comparable communities.  Eligible uses of funds shall include

  7  improvements to public infrastructure for industrial or

  8  commercial sites and upgrades to or development of public

  9  tourism infrastructure. Authorized infrastructure may include

10  the following public or public-private partnership facilities:

11  storm water systems; telecommunications facilities; roads or

12  other remedies to transportation impediments; nature-based

13  tourism facilities; or other physical requirements necessary

14  to facilitate tourism, trade, and economic development

15  activities in the community. Authorized infrastructure may

16  also include publicly owned self-powered nature-based tourism

17  facilities and additions to the distribution facilities of the

18  existing natural gas utility as defined in s. 366.04(3)(c),

19  the existing electric utility as defined in s. 366.02, or the

20  existing water or wastewater utility as defined in s.

21  367.021(12), or any other existing water or wastewater

22  facility, which owns a gas or electric distribution system or

23  a water or wastewater system in this state where:

24         1.  A contribution-in-aid of construction is required

25  to serve public or public-private partnership facilities under

26  the tariffs of any natural gas, electric, water, or wastewater

27  utility as defined herein; and

28         2.  Such utilities as defined herein are willing and

29  able to provide such service.

30         Section 6.  This act shall take effect upon becoming a

31  law.


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