House Bill hb0049E

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    Florida House of Representatives - 2002                HB 49-E

        By Representative Kilmer






  1                      A bill to be entitled

  2         An act relating to economic development;

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

  4         additional uses of moneys in the Rural

  5         Infrastructure Fund; amending s. 288.095, F.S.;

  6         revising terminology relating to certain

  7         incentive payment schedules; revising the due

  8         date and content for an annual report on

  9         incentives and reassigning responsibility for

10         such report to Enterprise Florida, Inc.;

11         amending s. 288.1045, F.S., relating to the tax

12         refund program for qualified defense

13         contractors; revising definitions; revising

14         conditions and procedures governing

15         applications for tax refunds; revising

16         provisions relating to the order authorizing a

17         tax refund; revising the required elements of a

18         tax refund agreement; providing an exemption

19         from mandatory loss of tax refund eligibility

20         and decertification resulting from agreement

21         breach in cases of uncontrollable economic

22         factors or specific acts of terrorism;

23         prescribing a deadline for applying for tax

24         refunds; authorizing the office to grant

25         extensions to certain application and

26         notification deadlines; revising conditions

27         under which a prorated tax refund will be

28         approved; providing for calculation of such

29         prorated refund; specifying that the section

30         does not create a presumption a claim will be

31         approved and paid; revising the agencies with

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    Florida House of Representatives - 2002                HB 49-E

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 1         which the office may verify information and to

 2         which the office may provide information;

 3         expanding purposes for which the office may

 4         seek assistance from certain entities;

 5         specifying that certain appropriations may not

 6         be used for any purpose other than the payment

 7         of specified tax refunds; amending s. 288.106,

 8         F.S., relating to the tax refund program for

 9         qualified target industry businesses; revising

10         requirements for application for certification

11         as such business with respect to the number of

12         current and new jobs at the business and

13         projections by the Office of Tourism, Trade,

14         and Economic Development of refunds based

15         thereon; revising requirements relating to the

16         tax refund agreement with respect to job

17         creation and the time for filing of claims for

18         refund; providing for an exemption from

19         mandatory loss of tax refund eligibility and

20         decertification resulting from agreement breach

21         in cases of uncontrollable economic factors or

22         specific acts of terrorism; revising provisions

23         relating to annual claims for refund;

24         authorizing an extension of time for signing

25         the tax refund agreement; providing an

26         application deadline; revising provisions

27         relating to the order authorizing a tax refund;

28         revising conditions under which a prorated tax

29         refund will be approved; providing for

30         calculation of such prorated tax refund;

31         specifying that the section does not create a

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    Florida House of Representatives - 2002                HB 49-E

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 1         presumption that a claim will be approved and

 2         paid; revising the agencies with which the

 3         office may verify information and to which the

 4         office may provide information; expanding

 5         purposes for which the office may seek

 6         assistance from certain entities; specifying

 7         that certain appropriations may not be used for

 8         any purpose other than the payment of specified

 9         tax refunds; amending ss. 212.08 and 288.108,

10         F.S.; removing references, to conform;

11         providing for construction of the act in pari

12         materia with laws enacted at the 2002 Regular

13         Session; providing an effective date.

14  

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

16  

17         Section 1.  Paragraphs (a) and (b) of subsection (2) of

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

19         288.0655  Rural Infrastructure Fund.--

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

21  distributed by the office through a grant programs program

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

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

24  under the Small Cities Community Development Block Grant

25  Program.

26         (b)  To facilitate access of rural communities and

27  rural areas of critical economic concern as defined by the

28  Rural Economic Development Initiative to infrastructure

29  funding programs of the Federal Government, such as those

30  offered by the United States Department of Agriculture and the

31  United States Department of Commerce, and state programs,

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    Florida House of Representatives - 2002                HB 49-E

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 1  including those offered by Rural Economic Development

 2  Initiative agencies, and to facilitate local government or

 3  private infrastructure funding efforts, the office may award

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

 5  percent of the total infrastructure project cost. Eligible

 6  projects must be related to specific job-creation or

 7  job-retention job creating opportunities. Eligible projects

 8  may also include improving any inadequate infrastructure that

 9  has resulted in regulatory action that prohibits economic or

10  community growth or reducing the costs to community users of

11  proposed infrastructure improvements that exceed such costs in

12  comparable communities. Eligible uses of funds shall include

13  improvements to public infrastructure for industrial or

14  commercial sites and upgrades to or development of public

15  tourism infrastructure. Authorized infrastructure may include

16  the following public or public-private partnership facilities:

17  storm water systems; telecommunications facilities; roads or

18  other remedies to transportation impediments; nature-based

19  tourism facilities; or other physical requirements necessary

20  to facilitate tourism, trade, and economic development

21  activities in the community. Authorized infrastructure may

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

23  facilities and additions to the distribution facilities of the

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

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

26  existing water or wastewater utility as defined in s.

27  367.021(12), or any other existing water or wastewater

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

29  a water or wastewater system in this state where:

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

31  to serve public or public-private partnership facilities under

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    Florida House of Representatives - 2002                HB 49-E

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

 2  utility as defined herein; and

 3         2.  Such utilities as defined herein are willing and

 4  able to provide such service.

 5         Section 2.  Paragraphs (b) and (c) of subsection (3) of

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

 7         288.095  Economic Development Trust Fund.--

 8         (3)

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

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

11  Development based on actual project performance may not exceed

12  the amount appropriated to the Economic Development Incentives

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

14  the Legislature does not appropriate an amount sufficient to

15  satisfy estimates projections by the office for tax refunds

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

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

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

19  claim which shall be paid by dividing the amount appropriated

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

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

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

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

24  funds remain in the Economic Development Incentives Account

25  for tax refunds, the office shall recalculate the proportion

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

27  accordingly.

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

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

30  Economic Development shall submit a complete and detailed

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

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    Florida House of Representatives - 2002                HB 49-E

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

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

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

 4  VII of this chapter, of all applications received,

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

 6  Economic Development, final decisions issued, tax refund

 7  agreements executed, and tax refunds paid or other payments

 8  made under all programs funded out of the Economic Development

 9  Incentives Account, including analyses of benefits and costs,

10  types of projects supported, and employment and investment

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

12  Trade, and Economic Development shall also include a separate

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

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

15  brownfield areas, and distressed urban communities. By

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

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

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

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

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

21  discuss whether the authority and moneys appropriated by the

22  Legislature to the Economic Development Incentives Account

23  were managed and expended in a prudent, fiducially sound

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

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

26  data related to business performance and incentive payments.

27         Section 3.  Section 288.1045, Florida Statutes, is

28  amended to read:

29         288.1045  Qualified defense contractor tax refund

30  program.--

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

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    Florida House of Representatives - 2002                HB 49-E

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 1         (a)  "Consolidation of a Department of Defense

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

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

 4  contracts either from outside this state or from inside and

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

 6  facilities inside this state.

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

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

 9  standard metropolitan area in which the business unit is

10  located.

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

12  valid Department of Defense contract or any business entity

13  that is a subcontractor under a valid Department of Defense

14  contract or any business entity that holds a valid contract

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

16  members of an affiliated group of corporations as defined in

17  s. 220.03(1)(b).

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

19  Economic Development.

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

21  competitively bid Department of Defense contract or

22  subcontract or a competitively bid federal agency contract or

23  subcontract issued on behalf of the Department of Defense for

24  manufacturing, assembling, fabricating, research, development,

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

26  any contract or subcontract to provide goods, improvements to

27  real or tangible property, or services directly to or for any

28  particular military base or installation in this state. The

29  term includes contracts or subcontracts for products or

30  services for military use which contracts or subcontracts are

31  approved by the United States Department of Defense, the

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    Florida House of Representatives - 2002                HB 49-E

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 1  United States Department of State, or the United States Coast

 2  Guard.

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

 4  Department of Defense contract entered into after the date

 5  application for certification as a qualified applicant is made

 6  and after January 1, 1994.

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

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

 9  Workforce Innovation Department of Labor and Employment

10  Security for the purpose of unemployment compensation tax,

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

12  does not include temporary construction jobs involved with the

13  construction of facilities for the project.

14         (h)  "Nondefense production jobs" means employment

15  exclusively for activities that, directly or indirectly, are

16  unrelated to the Department of Defense.

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

18  state under a new Department of Defense contract,

19  consolidation of a Department of Defense contract, or

20  conversion of defense production jobs over to nondefense

21  production jobs or reuse of defense-related facilities.

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

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

24  pursuant to this section.

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

26  Tourism, Trade, and Economic Development.

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

28  220.03(1)(z).

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

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

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

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    Florida House of Representatives - 2002                HB 49-E

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 1  Workforce Innovation Department of Labor and Employment

 2  Security for unemployment compensation purposes or means a

 3  subcategory or division of an employing unit that is accepted

 4  by the Agency for Workforce Innovation Department of Labor and

 5  Employment Security as a reporting unit.

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

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

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

 9  annual tax refund for a qualified applicant. Local financial

10  support may include excess payments made to a utility company

11  under a designated program to allow decreases in service by

12  the utility company under conditions, regardless of when

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

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

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

16  directly or indirectly, state funds appropriated from the

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

18  revenues shared with local governments pursuant to law.

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

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

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

22  research, development, or design of tangible personal

23  property, but excluding any contract to provide goods,

24  improvements to real or tangible property, or services

25  directly to or for any particular military base or

26  installation in this state. Such facility must be located

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

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

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

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

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

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    Florida House of Representatives - 2002                HB 49-E

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 1  defense-related facility may not include any contract for

 2  reuse of such facility for any Department of Defense contract

 3  for manufacturing, assembling, fabricating, research,

 4  development, or design.

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

 6  the option to exercise an exemption from the local financial

 7  support requirement available to any applicant whose project

 8  is located in a county designated by the Rural Economic

 9  Development Initiative, if the county commissioners of the

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

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

12  local financial support requirement. Any applicant that

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

14  of the total tax refunds allowed such applicant under this

15  section.

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

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

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

19  the amount of eligible taxes certified by the director which

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

21  refunds for all fiscal years for each qualified applicant

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

23  amount of a refund to a qualified applicant shall be

24  determined pursuant to subsection (5).

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

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

27  provided in the tax refund agreement pursuant to subparagraph

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

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

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

31  fiscal year, provided that no qualified applicant may receive

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    Florida House of Representatives - 2002                HB 49-E

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

 2  in any fiscal year.

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

 4  $7.5 million in tax refunds pursuant to this section in all

 5  fiscal years.

 6         (d)  Contingent upon an annual appropriation by the

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

 8  than the amount appropriated to the Economic Development Trust

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

10  (5) and s. 288.095.

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

12  director shall set aside 30 percent of the amount appropriated

13  for refunds pursuant to this section by the Legislature to

14  provide tax refunds only to qualified applicants who employ

15  500 or fewer full-time employees in this state. Any

16  unencumbered funds remaining undisbursed from this set-aside

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

18  refunds for any qualified applicants pursuant to this section.

19         (f)  After entering into a tax refund agreement

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

21  refunds from the Economic Development Trust Fund for the

22  following taxes due and paid by the qualified applicant

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

24  after entering into the agreement:

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

26  pursuant to chapter 212.

27         2.  Corporate income taxes paid pursuant to chapter

28  220.

29         3.  Intangible personal property taxes paid pursuant to

30  chapter 199.

31  

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    Florida House of Representatives - 2002                HB 49-E

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 1         4.  Emergency excise taxes paid pursuant to chapter

 2  221.

 3         5.  Excise taxes paid on documents pursuant to chapter

 4  201.

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

 6  220.03(1)(a) on June 1, 1996.

 7  

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

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

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

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

12  are subsequently adjusted by the application of any credit,

13  refund, or exemption granted to the qualified applicant other

14  than that provided in this section, the qualified applicant

15  shall reimburse the Economic Development Trust Fund for the

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

17  applicant must notify and tender payment to the office within

18  20 days after receiving a credit, refund, or exemption, other

19  than that provided in this section.

20         (g)  Any qualified applicant who fraudulently claims

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

22  Economic Development Trust Fund plus a mandatory penalty of

23  200 percent of the tax refund which shall be deposited into

24  the General Revenue Fund. Any qualified applicant who

25  fraudulently claims this refund commits a felony of the third

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

27  s. 775.084.

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

29  not be expended in connection with the relocation of a

30  business from one community to another community in this state

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

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    Florida House of Representatives - 2002                HB 49-E

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 1  determines that without such relocation the business will move

 2  outside this state or determines that the business has a

 3  compelling economic rationale for the relocation which creates

 4  additional jobs.

 5         (3)  APPLICATION PROCESS; REQUIREMENTS; AGENCY

 6  DETERMINATION.--

 7         (a)  To apply for certification as a qualified

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

 9  application with the office which satisfies the requirements

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

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

12  certification pursuant to this section after a proposal has

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

14  the applicant has made the decision to consolidate an existing

15  Department of Defense contract in this state for which such

16  applicant is seeking certification, or after the applicant has

17  made the decision to convert defense production jobs to

18  nondefense production jobs for which such applicant is seeking

19  certification.

20         (b)  Applications for certification based on the

21  consolidation of a Department of Defense contract or a new

22  Department of Defense contract must be submitted to the office

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

24  limited to, the following information:

25         1.  The applicant's federal employer identification

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

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

28         2.  The permanent location of the manufacturing,

29  assembling, fabricating, research, development, or design

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

31  located.

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    Florida House of Representatives - 2002                HB 49-E

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 1         3.  The Department of Defense contract numbers of the

 2  contract to be consolidated, the new Department of Defense

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

 4  of Defense contract.

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

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

 7  is expected to expire.

 8         5.  The commencement date for project operations under

 9  the contract in this state.

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

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

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

13  average wage of such jobs.

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

15  employed by the applicant in this state.

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

17  derived from Department of Defense contracts during the 5

18  taxable years immediately preceding the date the application

19  is submitted.

20         9.  The amount of:

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

22  pursuant to chapter 212;

23         b.  Corporate income taxes paid pursuant to chapter

24  220;

25         c.  Intangible personal property taxes paid pursuant to

26  chapter 199;

27         d.  Emergency excise taxes paid pursuant to chapter

28  221;

29         e.  Excise taxes paid on documents pursuant to chapter

30  201; and

31         f.  Ad valorem taxes paid

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    Florida House of Representatives - 2002                HB 49-E

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 1  

 2  during the 5 fiscal years immediately preceding the date of

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

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

 5  the application.

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

 7  for in each fiscal year.

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

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

10  applicant.

11         12.  A resolution adopted by the county commissioners

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

13  recommends the applicant be approved as a qualified applicant,

14  and which indicates that the necessary commitments of local

15  financial support for the applicant exist. Prior to the

16  adoption of the resolution, the county commission may review

17  the proposed public or private sources of such support and

18  determine whether the proposed sources of local financial

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

20  located in a county designated by the Rural Economic

21  Development Initiative, a resolution adopted by the county

22  commissioners of such county requesting that the applicant's

23  project be exempt from the local financial support

24  requirement.

25         13.  Any additional information requested by the

26  office.

27         (c)  Applications for certification based on the

28  conversion of defense production jobs to nondefense production

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

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

31  information:

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    Florida House of Representatives - 2002                HB 49-E

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 1         1.  The applicant's federal employer identification

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

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

 4         2.  The permanent location of the manufacturing,

 5  assembling, fabricating, research, development, or design

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

 7  located.

 8         3.  The Department of Defense contract numbers of the

 9  contract under which the defense production jobs will be

10  converted to nondefense production jobs.

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

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

13  canceled.

14         5.  The commencement date for the nondefense production

15  operations in this state.

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

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

18  the nondefense production project as of December 31 of each

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

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

21  employed by the applicant in this state.

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

23  derived from Department of Defense contracts during the 5

24  taxable years immediately preceding the date the application

25  is submitted.

26         9.  The amount of:

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

28  pursuant to chapter 212;

29         b.  Corporate income taxes paid pursuant to chapter

30  220;

31  

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    Florida House of Representatives - 2002                HB 49-E

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 1         c.  Intangible personal property taxes paid pursuant to

 2  chapter 199;

 3         d.  Emergency excise taxes paid pursuant to chapter

 4  221;

 5         e.  Excise taxes paid on documents pursuant to chapter

 6  201; and

 7         f.  Ad valorem taxes paid

 8  

 9  during the 5 fiscal years immediately preceding the date of

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

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

12  the application.

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

14  for in each fiscal year.

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

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

17  applicant.

18         12.  A resolution adopted by the county commissioners

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

20  recommends the applicant be approved as a qualified applicant,

21  and which indicates that the necessary commitments of local

22  financial support for the applicant exist. Prior to the

23  adoption of the resolution, the county commission may review

24  the proposed public or private sources of such support and

25  determine whether the proposed sources of local financial

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

27  located in a county designated by the Rural Economic

28  Development Initiative, a resolution adopted by the county

29  commissioners of such county requesting that the applicant's

30  project be exempt from the local financial support

31  requirement.

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 1         13.  Any additional information requested by the

 2  office.

 3         (d)  Applications for certification based on a contract

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

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

 6  are not limited to, the following information:

 7         1.  The applicant's Florida sales tax registration

 8  number and a notarized signature of an officer of the

 9  applicant.

10         2.  The permanent location of the manufacturing,

11  assembling, fabricating, research, development, or design

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

13  located.

14         3.  The business entity holding a valid Department of

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

16  States that previously occupied the facility, and the date

17  such entity last occupied the facility.

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

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

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

21  facility.

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

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

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

25         6.  The commencement date for project operations under

26  the contract in this state.

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

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

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

30  average wage of such jobs.

31  

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

 2  employed by the applicant in this state.

 3         9.  The amount of:

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

 5  pursuant to chapter 212.

 6         b.  Corporate income taxes paid pursuant to chapter

 7  220.

 8         c.  Intangible personal property taxes paid pursuant to

 9  chapter 199.

10         d.  Emergency excise taxes paid pursuant to chapter

11  221.

12         e.  Excise taxes paid on documents pursuant to chapter

13  201.

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

15  immediately preceding the date of the application, and the

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

17  years immediately following the date of the application.

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

19  for in each fiscal year.

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

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

22  applicant.

23         12.  A resolution adopted by the county commissioners

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

25  recommends the applicant be approved as a qualified applicant,

26  and which indicates that the necessary commitments of local

27  financial support for the applicant exist. Prior to the

28  adoption of the resolution, the county commission may review

29  the proposed public or private sources of such support and

30  determine whether the proposed sources of local financial

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

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 1  located in a county designated by the Rural Economic

 2  Development Initiative, a resolution adopted by the county

 3  commissioners of such county requesting that the applicant's

 4  project be exempt from the local financial support

 5  requirement.

 6         13.  Any additional information requested by the

 7  office.

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

 9  application of an applicant must, at a minimum, establish the

10  following to the satisfaction of the office:

11         1.  The jobs proposed to be provided under the

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

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

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

15  project is to be located.

16         2.  The consolidation of a Department of Defense

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

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

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

20  facilities in this state.

21         3.  The conversion of defense production jobs to

22  nondefense production jobs must result in net increases in

23  nondefense employment at the applicant's facilities in this

24  state.

25         4.  The Department of Defense contract cannot allow the

26  business to include the costs of relocation or retooling in

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

28  contract.

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

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

31  state from Department of Defense contracts over the

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    Florida House of Representatives - 2002                HB 49-E

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

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

 3  state from Department of Defense contracts over the 5 years

 4  preceding the date an application is submitted pursuant to

 5  this section. This subparagraph does not apply to any

 6  application for certification based on a contract for reuse of

 7  a defense-related facility.

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

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

10         (f)  Each application meeting the requirements of

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

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

13  determination of eligibility. The office shall review,

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

15  to, the following criteria:

16         1.  Expected contributions to the state strategic

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

18  taking into account the extent to which the project

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

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

21  state's economy.

22         2.  The economic benefit of the jobs created or

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

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

25  potential risk to existing jobs.

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

27  applicant in this state.

28         4.  The local commitment and support for the project

29  and applicant.

30  

31  

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

 2  taking into account the unemployment rate for the county where

 3  the project will be located.

 4         6.  The dependence of the local community on the

 5  defense industry.

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

 7  this section on the viability of the project and the

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

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

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

11  growth and employment in this state.

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

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

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

15  evaluation on each application meeting the requirements of

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

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

18  receipt of a complete application. The office shall notify

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

20  60-day period begins. In its written report to the director,

21  the office shall specifically address each of the factors

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

23  assessment with respect to the minimum requirements

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

25  report projections of the tax refunds the applicant would be

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

27  applicant in each fiscal year based on the creation and

28  maintenance of the net new Florida jobs specified in

29  subparagraphs (b)6., (c)6., or (d)7. as of December 31 of the

30  preceding state fiscal year information submitted in the

31  application.

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

 2  findings and evaluation, the director shall issue a letter of

 3  certification which enter a final order that either approves

 4  or disapproves an application. The decision must be in writing

 5  and provide the justifications for either approval or

 6  disapproval. If appropriate, the director shall enter into a

 7  written agreement with the qualified applicant pursuant to

 8  subsection (4).

 9         (i)  The director may not certify enter any final order

10  that certifies any applicant as a qualified applicant when the

11  value of tax refunds to be included in that letter of

12  certification final order exceeds the available amount of

13  authority to certify new businesses enter final orders as

14  determined in s. 288.095(3). A letter of certification final

15  order that approves an application must specify the maximum

16  amount of a tax refund that is to be available to the

17  contractor for in each fiscal year and the total amount of tax

18  refunds for all fiscal years.

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

20  applicant should receive any tax refunds under this section.

21         (4)  QUALIFIED DEFENSE CONTRACTOR TAX REFUND

22  AGREEMENT.--

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

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

25  following:

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

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

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

29  definitions that will apply for measuring the achievement of

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

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

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

 2  information contained in the application submitted by the

 3  contractor pursuant to subsection (3).

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

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

 6  based on the job creation or retention and maintenance

 7  schedule specified in subparagraph 1.

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

 9  review and verify the financial and personnel records of the

10  qualified applicant to ascertain whether the qualified

11  applicant is complying with the requirements of this section.

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

13  qualified applicant may file a an annual claim pursuant to

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

15  following fiscal year.

16         5.  That local financial support shall be annually

17  available and will be paid to the Economic Development Trust

18  Fund.

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

20  agreement is a condition precedent for receipt of tax refunds

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

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

23  receipt of all tax refunds previously authorized pursuant to

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

25  qualified applicant by the director, unless the qualified

26  applicant is eligible to receive and elects to accept a

27  prorated refund under paragraph (5)(g) or the office grants

28  the qualified applicant an economic-stimulus exemption.

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

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

31  request must provide quantitative evidence demonstrating how

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 1  negative economic conditions in the qualified applicant's

 2  industry, or specific acts of terrorism affecting the

 3  qualified applicant, have prevented the qualified applicant

 4  from complying with the terms and conditions of its tax refund

 5  agreement.

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

 7  the director shall have 45 days to notify the requesting

 8  qualified applicant, in writing, if its exemption has been

 9  granted or denied. In determining if an exemption should be

10  granted, the director shall consider the extent to which

11  negative economic conditions in the requesting qualified

12  applicant's industry, or specific acts of terrorism affecting

13  the qualified applicant, have prevented the qualified

14  applicant from complying with the terms and conditions of its

15  tax refund agreement.

16         3.  As a condition for receiving a prorated refund

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

18  this paragraph, a qualified applicant must agree to

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

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

21  current law and office procedures governing application for

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

23  prorated refund or granting an economic-stimulus exemption,

24  the office shall renegotiate the tax refund agreement with the

25  qualified applicant as required by this subparagraph. When

26  amending the agreement of a qualified applicant receiving an

27  economic-stimulus exemption, the office may extend the

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

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

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

31  

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 1  refund claim scheduled to be submitted after January 1, 2001,

 2  but before July 1, 2003.

 3         5.  A qualified applicant that receives an

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

 5  the period covered by the exemption.

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

 7  the authorized officer of the qualified applicant.

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

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

10  points:

11  

12         "This agreement is neither a general obligation

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

14         the full faith and credit of the State of

15         Florida. Payment of tax refunds are conditioned

16         on and subject to specific annual

17         appropriations by the Florida Legislature of

18         funds sufficient to pay amounts authorized in

19         s. 288.1045, Florida Statutes."

20  

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

22  CONTRACTOR.--

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

24  qualified applicants who have entered into a written agreement

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

26  entered into a valid new Department of Defense contract,

27  commenced the consolidation of a Department of Defense

28  contract, commenced the conversion of defense production jobs

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

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

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

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 1  for tax refunds scheduled to be paid from the appropriation

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

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

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

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

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

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

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

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

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

11  achieving each performance item contained in the tax refund

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

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

14  year in the written agreement entered pursuant to subsection

15  (4).

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

17  applicant unless local financial support has been paid to the

18  Economic Development Trust Fund for in that refund fiscal

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

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

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

22  support received. Funding from local sources includes tax

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

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

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

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

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

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

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

30  paid to the Economic Development Trust Fund.

31  

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

 2  Department of Revenue, and the Agency for Workforce Innovation

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

 4  following the scheduled date for submitting the tax-refund

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

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

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

 8  qualified applicant for the fiscal year in a written final

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

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

11  extension of this date upon the request of the qualified

12  applicant for the purpose of filing additional information in

13  support of the claim.

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

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

16  the amount appropriated to the Economic Development Trust Fund

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

18  not appropriate an amount sufficient to satisfy projections by

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

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

21  proportion of each refund claim which shall be paid by

22  dividing the amount appropriated for tax refunds for the

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

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

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

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

27  Economic Development Trust Fund for tax refunds, the director

28  shall recalculate the proportion for each refund claim and

29  adjust the amount of each claim accordingly.

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

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

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 1  for the amount included in the written final order. In the

 2  event of any appeal of the written final order, the

 3  Comptroller may not issue a warrant for a refund to the

 4  qualified applicant until the conclusion of all appeals of the

 5  written final order.

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

 7  shall be approved for a qualified applicant provided all other

 8  applicable requirements have been satisfied and the applicant

 9  proves to the satisfaction of the director that it has

10  achieved at least 80 percent of its projected employment and

11  that the average wage paid by the qualified applicant is at

12  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. The prorated tax refund shall be calculated

16  by multiplying the tax refund amount for which the qualified

17  applicant would have been eligible, if all applicable

18  requirements had been satisfied, by the percentage of the

19  average employment specified in the tax refund agreement which

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

21  specified in the tax refund agreement which was achieved.

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

23  tax refund claim will be approved and paid.

24         (6)  ADMINISTRATION.--

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

26  for the administration of this section.

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

28  claim submitted for tax credits under this section with regard

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

30  the appropriate agency or authority including the Department

31  of Revenue, the Agency for Workforce Innovation Department of

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 1  Labor and Employment Security, or any local government or

 2  authority.

 3         (c)  To facilitate the process of monitoring and

 4  auditing applications made under this program, the office may

 5  provide a list of qualified applicants to the Department of

 6  Revenue, to the Agency for Workforce Innovation Department of

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

 8  authority. The office may request the assistance of said

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

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

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

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

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

14  Representatives of all tax refunds paid under this section,

15  including analyses of benefits and costs, types of projects

16  supported, employment and investment created, geographic

17  distribution of tax refunds granted, and minority business

18  participation.  The report must indicate whether the moneys

19  appropriated by the Legislature to the qualified applicant tax

20  refund program were expended in a prudent, fiducially sound

21  manner.

22         (e)  Funds specifically appropriated for the tax refund

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

24  other than the payment of tax refunds authorized by this

25  section.

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

27  qualified under this section after June 30, 2004.

28         Section 4.  Paragraphs (a) and (d) of subsection (3),

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

30  subsections (5), (6), and (7) of section 288.106, Florida

31  Statutes, are amended to read:

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 1         288.106  Tax refund program for qualified target

 2  industry businesses.--

 3         (3)  APPLICATION AND APPROVAL PROCESS.--

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

 5  industry business under this section, the business must file

 6  an application with the office before the business has made

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

 8  the business had made the decision to expand an existing

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

10  not limited to, the following information:

11         1.  The applicant's federal employer identification

12  number and the applicant's state sales tax registration

13  number.

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

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

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

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

18  for all activities included in the project.

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

20  jobs at the qualified target industry business as of December

21  31 of each year included in this state that are or will be

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

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

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

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

26  business activity or product.

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

28  employed by the applicant in this state.

29         6.  The anticipated commencement date of the project.

30  

31  

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

 2  refunds requested will play in the decision of the applicant

 3  to locate or expand in this state.

 4         8.  An estimate of the proportion of the sales

 5  resulting from the project that will be made outside this

 6  state.

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

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

 9  which resolution recommends that certain types of businesses

10  be approved as a qualified target industry business and states

11  that the commitments of local financial support necessary for

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

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

14  letter from an authorized local economic development agency

15  that endorses the proposed target industry project and pledges

16  that sources of local financial support for such project

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

18  support under this subsection, the authorized local economic

19  development agency shall be officially designated by the

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

21  authority.

22         10.  Any additional information requested by the

23  office.

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

25  evaluation concerning each application meeting the

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

27  calendar days after receipt of a complete application. The

28  office shall notify each target industry business when its

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

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

31  office shall specifically address each of the factors

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

 2  assessment with respect to the minimum requirements

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

 4  report projections of the tax refunds the business would be

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

 6  target industry business in each fiscal year based on the

 7  creation and maintenance of the net new Florida jobs specified

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

 9  fiscal year information submitted in the application.

10         (4)  TAX REFUND AGREEMENT.--

11         (a)  Each qualified target industry business must enter

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

13  minimum:

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

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

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

17  measuring the achievement of these terms during the pendency

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

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

20  information must be the same as the information contained in

21  the application submitted by the business under subsection

22  (3).

23         2.  The maximum amount of tax refunds which the

24  qualified target industry business is eligible to receive on

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

26  qualified target industry business is eligible to receive for

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

28  schedule specified in subparagraph 1.

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

30  and personnel records of the qualified target industry

31  

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 1  business to ascertain whether that business is in compliance

 2  with this section.

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

 4  qualified target industry business may file a an annual claim

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

 6  in the following fiscal year.

 7         5.  That local financial support will be annually

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

 9  not enter into a written agreement with a qualified target

10  industry business if the local financial support resolution is

11  not passed by the local governing authority within 90 days

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

13  subsection (3).

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

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

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

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

18  eligibility for receipt of all tax refunds previously

19  authorized under this section and the revocation by the

20  director of the certification of the business entity as a

21  qualified target industry business, unless the business is

22  eligible to receive and elects to accept a prorated refund

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

24  economic-stimulus exemption.

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

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

27  exemption. The request must provide quantitative evidence

28  demonstrating how negative economic conditions in the

29  business's industry, or specific acts of terrorism affecting

30  the qualified target industry business, have prevented the

31  

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    Florida House of Representatives - 2002                HB 49-E

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 1  business from complying with the terms and conditions of its

 2  tax refund agreement.

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

 4  the director shall have 45 days to notify the requesting

 5  business, in writing, if its exemption has been granted or

 6  denied. In determining if an exemption should be granted, the

 7  director shall consider the extent to which negative economic

 8  conditions in the requesting business's industry, or specific

 9  acts of terrorism affecting the qualified target industry

10  business, have prevented the business from complying with the

11  terms and conditions of its tax refund agreement.

12         3.  As a condition for receiving a prorated refund

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

14  this paragraph, a qualified target industry business must

15  agree to renegotiate its tax refund agreement with the office

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

17  comply with current law and office procedures governing

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

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

20  exemption, the office shall renegotiate the tax refund

21  agreement with the business as required by this subparagraph.

22  When amending the agreement of a business receiving an

23  economic-stimulus exemption, the office may extend the

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

25         4.  A qualified target industry business may submit a

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

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

28  January 1, 2001, but before July 1, 2003.

29         5.  A qualified target industry business that receives

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

31  for the period covered by the exemption.

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

 2  by an authorized officer of the qualified target industry

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

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

 5  receipt of the resolution of local financial support. The

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

 7  request of the qualified target industry business.

 8         (5)  ANNUAL CLAIM FOR REFUND.--

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

10  a qualified target industry business that has entered into a

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

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

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

14  appropriation for the fiscal year that begins on July 1

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

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

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

18  specified in that agreement.

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

20  industry business must include a copy of all receipts

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

22  sought and data related to achievement of each performance

23  item specified in the tax refund agreement. The amount

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

25  for the relevant that fiscal year in that agreement.

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

27  target industry business unless the required local financial

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

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

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

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

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    Florida House of Representatives - 2002                HB 49-E

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

 2  financial support received. Further, funding from local

 3  sources includes any tax abatement granted to that business

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

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

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

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

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

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

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

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

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

13  when such support is paid to the account.

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

15  shall be approved for a qualified target industry business

16  provided all other applicable requirements have been satisfied

17  and the business proves to the satisfaction of the director

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

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

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

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

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

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

24  private-sector wage if the business requested the additional

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

26  above those levels. The prorated tax refund shall be

27  calculated by multiplying the tax refund amount for which the

28  qualified target industry business would have been eligible,

29  if all applicable requirements had been satisfied, by the

30  percentage of the average employment specified in the tax

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

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    Florida House of Representatives - 2002                HB 49-E

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 1  the average wages specified in the tax refund agreement which

 2  was achieved.

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

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

 5  Agency for Workforce Innovation Department of Labor and

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

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

 8  written final order the approval or disapproval of the tax

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

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

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

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

13  the office. The office may grant an extension of this date on

14  the request of the qualified target industry business for the

15  purpose of filing additional information in support of the

16  claim.

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

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

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

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

21  tax refund claim will be approved and paid.

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

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

24  warrant for the amount specified in the written final order.

25  If the written final order is appealed, the Comptroller may

26  not issue a warrant for a refund to the qualified target

27  industry business until the conclusion of all appeals of that

28  order.

29         (6)  ADMINISTRATION.--

30         (a)  The office is authorized to verify information

31  provided in any claim submitted for tax credits under this

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    Florida House of Representatives - 2002                HB 49-E

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 1  section with regard to employment and wage levels or the

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

 3  including the Department of Revenue, the Agency for Workforce

 4  Innovation Department of Labor and Employment Security, or any

 5  local government or authority.

 6         (b)  To facilitate the process of monitoring and

 7  auditing applications made under this program, the office may

 8  provide a list of qualified target industry businesses to the

 9  Department of Revenue, to the Agency for Workforce Innovation

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

11  government or authority. The office may request the assistance

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

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

14         (c)  Funds specifically appropriated for the tax refund

15  program for qualified target industry businesses may not be

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

17  authorized by this section.

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

19         Section 5.  Paragraph (j) of subsection (5) of section

20  212.08, Florida Statutes, is amended to read:

21         212.08  Sales, rental, use, consumption, distribution,

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

23  the rental, the use, the consumption, the distribution, and

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

25  following are hereby specifically exempt from the tax imposed

26  by this chapter.

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

28         (j)  Machinery and equipment used in semiconductor,

29  defense, or space technology production and research and

30  development.--

31  

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    Florida House of Representatives - 2002                HB 49-E

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 1         1.a.  Industrial machinery and equipment used in

 2  semiconductor technology facilities certified under

 3  subparagraph 6. to manufacture, process, compound, or produce

 4  semiconductor technology products for sale or for use by these

 5  facilities are exempt from the tax imposed by this chapter.

 6  For purposes of this paragraph, industrial machinery and

 7  equipment includes molds, dies, machine tooling, other

 8  appurtenances or accessories to machinery and equipment,

 9  testing equipment, test beds, computers, and software, whether

10  purchased or self-fabricated, and, if self-fabricated,

11  includes materials and labor for design, fabrication, and

12  assembly.

13         b.  Industrial machinery and equipment used in defense

14  or space technology facilities certified under subparagraph 6.

15  to manufacture, process, compound, or produce defense

16  technology products or space technology products for sale or

17  for use by these facilities are exempt from 25 percent of the

18  tax imposed by this chapter.

19         2.a.  Machinery and equipment are exempt from the tax

20  imposed by this chapter if used predominately in semiconductor

21  wafer research and development activities in a semiconductor

22  technology research and development facility certified under

23  subparagraph 6. For purposes of this paragraph, machinery and

24  equipment includes molds, dies, machine tooling, other

25  appurtenances or accessories to machinery and equipment,

26  testing equipment, test beds, computers, and software, whether

27  purchased or self-fabricated, and, if self-fabricated,

28  includes materials and labor for design, fabrication, and

29  assembly.

30         b.  Machinery and equipment are exempt from 25 percent

31  of the tax imposed by this chapter if used predominately in

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    Florida House of Representatives - 2002                HB 49-E

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 1  defense or space research and development activities in a

 2  defense or space technology research and development facility

 3  certified under subparagraph 6.

 4         3.  Building materials purchased for use in

 5  manufacturing or expanding clean rooms in

 6  semiconductor-manufacturing facilities are exempt from the tax

 7  imposed by this chapter.

 8         4.  In addition to meeting the criteria mandated by

 9  subparagraph 1., subparagraph 2., or subparagraph 3., a

10  business must be certified by the Office of Tourism, Trade,

11  and Economic Development as authorized in this paragraph in

12  order to qualify for exemption under this paragraph.

13         5.  For items purchased tax exempt pursuant to this

14  paragraph, possession of a written certification from the

15  purchaser, certifying the purchaser's entitlement to exemption

16  pursuant to this paragraph, relieves the seller of the

17  responsibility of collecting the tax on the sale of such

18  items, and the department shall look solely to the purchaser

19  for recovery of tax if it determines that the purchaser was

20  not entitled to the exemption.

21         6.a.  To be eligible to receive the exemption provided

22  by subparagraph 1., subparagraph 2., or subparagraph 3., a

23  qualifying business entity shall apply to Enterprise Florida,

24  Inc. The application shall be developed by the Office of

25  Tourism, Trade, and Economic Development in consultation with

26  Enterprise Florida, Inc.

27         b.  Enterprise Florida, Inc., shall review each

28  submitted application and information and determine whether or

29  not the application is complete within 5 working days. Once an

30  application is complete, Enterprise Florida, Inc., shall,

31  within 10 working days, evaluate the application and recommend

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    Florida House of Representatives - 2002                HB 49-E

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 1  approval or disapproval of the application to the Office of

 2  Tourism, Trade, and Economic Development.

 3         c.  Upon receipt of the application and recommendation

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

 5  and Economic Development shall certify within 5 working days

 6  those applicants who are found to meet the requirements of

 7  this section and notify the applicant, Enterprise Florida,

 8  Inc., and the department of the certification. If the Office

 9  of Tourism, Trade, and Economic Development finds that the

10  applicant does not meet the requirements of this section, it

11  shall notify the applicant and Enterprise Florida, Inc.,

12  within 10 working days that the application for certification

13  has been denied and the reasons for denial. The Office of

14  Tourism, Trade, and Economic Development has final approval

15  authority for certification under this section.

16         7.a.  A business may apply once each year for the

17  exemption.

18         b.  The application must indicate, for program

19  evaluation purposes only, the average number of full-time

20  equivalent employees at the facility over the preceding

21  calendar year, the average wage and benefits paid to those

22  employees over the preceding calendar year, the total

23  investment made in real and tangible personal property over

24  the preceding calendar year, and the total value of tax-exempt

25  purchases and taxes exempted during the previous year. The

26  department shall assist the Office of Tourism, Trade, and

27  Economic Development in evaluating and verifying information

28  provided in the application for exemption.

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

30  Development may use the information reported on the

31  application for evaluation purposes only and shall prepare an

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    Florida House of Representatives - 2002                HB 49-E

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 1  annual report on the exemption program and its cost and

 2  impact. The annual report for the preceding fiscal year shall

 3  be submitted to the Governor, the President of the Senate, and

 4  the Speaker of the House of Representatives by September 30 of

 5  each fiscal year. This report may be submitted in conjunction

 6  with the annual report required in s. 288.095(3)(c).

 7         8.  A business certified to receive this exemption may

 8  elect to designate one or more state universities or community

 9  colleges as recipients of up to 100 percent of the amount of

10  the exemption for which they may qualify. To receive these

11  funds, the institution must agree to match the funds so earned

12  with equivalent cash, programs, services, or other in-kind

13  support on a one-to-one basis in the pursuit of research and

14  development projects as requested by the certified business.

15  The rights to any patents, royalties, or real or intellectual

16  property must be vested in the business unless otherwise

17  agreed to by the business and the university or community

18  college.

19         9.  As used in this paragraph, the term:

20         a.  "Predominately" means at least 50 percent of the

21  time in qualifying research and development.

22         b.  "Research and development" means basic and applied

23  research in the science or engineering, as well as the design,

24  development, and testing of prototypes or processes of new or

25  improved products. Research and development does not include

26  market research, routine consumer product testing, sales

27  research, research in the social sciences or psychology,

28  nontechnological activities, or technical services.

29         c.  "Semiconductor technology products" means raw

30  semiconductor wafers or semiconductor thin films that are

31  transformed into semiconductor memory or logic wafers,

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    Florida House of Representatives - 2002                HB 49-E

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 1  including wafers containing mixed memory and logic circuits;

 2  related assembly and test operations; active-matrix flat panel

 3  displays; semiconductor chips; semiconductor lasers;

 4  optoelectronic elements; and related semiconductor technology

 5  products as determined by the Office of Tourism, Trade, and

 6  Economic Development.

 7         d.  "Clean rooms" means manufacturing facilities

 8  enclosed in a manner that meets the clean manufacturing

 9  requirements necessary for high-technology

10  semiconductor-manufacturing environments.

11         e.  "Defense technology products" means products that

12  have a military application, including, but not limited to,

13  weapons, weapons systems, guidance systems, surveillance

14  systems, communications or information systems, munitions,

15  aircraft, vessels, or boats, or components thereof, which are

16  intended for military use and manufactured in performance of a

17  contract with the United States Department of Defense or the

18  military branch of a recognized foreign government or a

19  subcontract thereunder which relates to matters of national

20  defense.

21         f.  "Space technology products" means products that are

22  specifically designed or manufactured for application in space

23  activities, including, but not limited to, space launch

24  vehicles, missiles, satellites or research payloads, avionics,

25  and associated control systems and processing systems. The

26  term does not include products that are designed or

27  manufactured for general commercial aviation or other uses

28  even though those products may also serve an incidental use in

29  space applications.

30         Section 6.  Subsection (7) of section 288.108, Florida

31  Statutes, is amended to read:

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    Florida House of Representatives - 2002                HB 49-E

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 1         288.108  High-impact business.--

 2         (7)  REPORTING.--The office shall by December 1 of each

 3  year issue a complete and detailed report of all designated

 4  high-impact sectors, all applications received and their

 5  disposition, all final orders issued, and all payments made,

 6  including analyses of benefits and costs, types of projects

 7  supported, and employment and investments created. The report

 8  shall be submitted to the Governor, the President of the

 9  Senate, and the Speaker of the House of Representatives. The

10  report may be combined with the incentives report required in

11  s. 288.095.

12         Section 7.  If any law that is amended by this act was

13  also amended by a law enacted at the 2002 Regular Session of

14  the Legislature, such laws shall be construed as if they had

15  been enacted at the same session of the Legislature, and full

16  effect should be given to each if that is possible.

17         Section 8.  This act shall take effect upon becoming a

18  law.

19  

20            *****************************************

21                          SENATE SUMMARY

22    Provides for additional uses of moneys in the Rural
      Infrastructure Fund. Substitutes Enterprise Florida, Inc.
23    for the Office of Tourism, Trade, and Economic
      Development for specified purposes relating to the
24    Economic Development Trust Fund. Revises the qualified
      defense contractor tax refund program. Revises
25    requirements for the tax refund program for qualified
      target industry businesses. (See bill for details.)
26  

27  

28  

29  

30  

31  

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