Senate Bill sb2328c2
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Florida Senate - 2003 CS for CS for SB's 2328 & 2252
By the Committees on Comprehensive Planning; Commerce,
Economic Opportunities, and Consumer Services; and Senators
Saunders, Miller and Siplin
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1 A bill to be entitled
2 An act relating to economic stimulus; amending
3 s. 212.08, F.S.; revising sales price criteria
4 for characterizing business property; amending
5 s. 212.097, F.S.; revising provisions providing
6 for an urban job tax credit program to apply to
7 designated urban job tax credit areas rather
8 than high crime areas; revising and providing
9 definitions, eligibility criteria, application
10 procedures and requirements, and area
11 characteristics and criteria; authorizing
12 transfer of unused credits; specifying use of
13 transferred credits; amending s. 220.1895,
14 F.S.; conforming changes; removing a historical
15 reference; amending s. 220.191, F.S.; revising
16 definitions; amending s. 288.1045, F.S.;
17 revising the definition of "Department of
18 Defense contract" under the tax refund program
19 for qualified defense contractors; extending
20 the period applicable to a program exemption
21 under certain conditions; amending s. 288.106,
22 F.S.; providing for special consideration to be
23 given to defense and homeland security under
24 the tax refund program for qualified target
25 industry businesses; extending the period
26 applicable to a program exemption under certain
27 conditions; reenacting and amending s.
28 288.9515, F.S.; revising and clarifying powers
29 of Enterprise Florida, Inc., to develop
30 authorized technology development programs;
31 deleting a preference requirement for
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1 contractor selections; clarifying a requirement
2 for capitalization of a technology development
3 financing fund; revising criteria and
4 requirements for investment of moneys in the
5 Florida Technology Research Investment Fund;
6 providing for payment of certain claims from
7 the fund; specifying nonapplication of state
8 credit or taxing power; specifying absence of
9 state liability for certain claims; directing
10 Enterprise Florida, Inc., to facilitate the
11 formation of investor networks; repealing s.
12 288.9517, F.S., relating to audits of the
13 technology development board and
14 confidentiality of the identity of certain
15 contributors to the board; repealing s. 14, ch.
16 93-187, Laws of Florida, relating to the future
17 repeal and review by the Legislature of
18 statutes governing certain technology
19 development programs of Enterprise Florida,
20 Inc.; providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Paragraph (h) of subsection (5) of section
25 212.08, Florida Statutes, is amended to read:
26 212.08 Sales, rental, use, consumption, distribution,
27 and storage tax; specified exemptions.--The sale at retail,
28 the rental, the use, the consumption, the distribution, and
29 the storage to be used or consumed in this state of the
30 following are hereby specifically exempt from the tax imposed
31 by this chapter.
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1 (5) EXEMPTIONS; ACCOUNT OF USE.--
2 (h) Business property used in an enterprise zone.--
3 1. Business property purchased for use by businesses
4 located in an enterprise zone which is subsequently used in an
5 enterprise zone shall be exempt from the tax imposed by this
6 chapter. This exemption inures to the business only through a
7 refund of previously paid taxes. A refund shall be authorized
8 upon an affirmative showing by the taxpayer to the
9 satisfaction of the department that the requirements of this
10 paragraph have been met.
11 2. To receive a refund, the business must file under
12 oath with the governing body or enterprise zone development
13 agency having jurisdiction over the enterprise zone where the
14 business is located, as applicable, an application which
15 includes:
16 a. The name and address of the business claiming the
17 refund.
18 b. The identifying number assigned pursuant to s.
19 290.0065 to the enterprise zone in which the business is
20 located.
21 c. A specific description of the property for which a
22 refund is sought, including its serial number or other
23 permanent identification number.
24 d. The location of the property.
25 e. The sales invoice or other proof of purchase of the
26 property, showing the amount of sales tax paid, the date of
27 purchase, and the name and address of the sales tax dealer
28 from whom the property was purchased.
29 f. Whether the business is a small business as defined
30 by s. 288.703(1).
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1 g. If applicable, the name and address of each
2 permanent employee of the business, including, for each
3 employee who is a resident of an enterprise zone, the
4 identifying number assigned pursuant to s. 290.0065 to the
5 enterprise zone in which the employee resides.
6 3. Within 10 working days after receipt of an
7 application, the governing body or enterprise zone development
8 agency shall review the application to determine if it
9 contains all the information required pursuant to subparagraph
10 2. and meets the criteria set out in this paragraph. The
11 governing body or agency shall certify all applications that
12 contain the information required pursuant to subparagraph 2.
13 and meet the criteria set out in this paragraph as eligible to
14 receive a refund. If applicable, the governing body or agency
15 shall also certify if 20 percent of the employees of the
16 business are residents of an enterprise zone, excluding
17 temporary and part-time employees. The certification shall be
18 in writing, and a copy of the certification shall be
19 transmitted to the executive director of the Department of
20 Revenue. The business shall be responsible for forwarding a
21 certified application to the department within the time
22 specified in subparagraph 4.
23 4. An application for a refund pursuant to this
24 paragraph must be submitted to the department within 6 months
25 after the tax is due on the business property that is
26 purchased.
27 5. The provisions of s. 212.095 do not apply to any
28 refund application made pursuant to this paragraph. The amount
29 refunded on purchases of business property under this
30 paragraph shall be the lesser of 97 percent of the sales tax
31 paid on such business property or $5,000, or, if no less than
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1 20 percent of the employees of the business are residents of
2 an enterprise zone, excluding temporary and part-time
3 employees, the amount refunded on purchases of business
4 property under this paragraph shall be the lesser of 97
5 percent of the sales tax paid on such business property or
6 $10,000. A refund approved pursuant to this paragraph shall be
7 made within 30 days of formal approval by the department of
8 the application for the refund. No refund shall be granted
9 under this paragraph unless the amount to be refunded exceeds
10 $100 in sales tax paid on purchases made within a 60-day time
11 period.
12 6. The department shall adopt rules governing the
13 manner and form of refund applications and may establish
14 guidelines as to the requisites for an affirmative showing of
15 qualification for exemption under this paragraph.
16 7. If the department determines that the business
17 property is used outside an enterprise zone within 3 years
18 from the date of purchase, the amount of taxes refunded to the
19 business purchasing such business property shall immediately
20 be due and payable to the department by the business, together
21 with the appropriate interest and penalty, computed from the
22 date of purchase, in the manner provided by this chapter.
23 Notwithstanding this subparagraph, business property used
24 exclusively in:
25 a. Licensed commercial fishing vessels,
26 b. Fishing guide boats, or
27 c. Ecotourism guide boats
28
29 that leave and return to a fixed location within an area
30 designated under s. 370.28 are eligible for the exemption
31 provided under this paragraph if all requirements of this
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1 paragraph are met. Such vessels and boats must be owned by a
2 business that is eligible to receive the exemption provided
3 under this paragraph. This exemption does not apply to the
4 purchase of a vessel or boat.
5 8. The department shall deduct an amount equal to 10
6 percent of each refund granted under the provisions of this
7 paragraph from the amount transferred into the Local
8 Government Half-cent Sales Tax Clearing Trust Fund pursuant to
9 s. 212.20 for the county area in which the business property
10 is located and shall transfer that amount to the General
11 Revenue Fund.
12 9. For the purposes of this exemption, "business
13 property" means new or used property defined as "recovery
14 property" in s. 168(c) of the Internal Revenue Code of 1954,
15 as amended, except:
16 a. Property classified as 3-year property under s.
17 168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
18 b. Industrial machinery and equipment as defined in
19 sub-subparagraph (b)6.a. and eligible for exemption under
20 paragraph (b);
21 c. Building materials as defined in sub-subparagraph
22 (g)8.a.; and
23 d. Business property having a sales price of under
24 $500 $5,000 per unit.
25 10. The provisions of this paragraph shall expire and
26 be void on December 31, 2005.
27 Section 2. Section 212.097, Florida Statutes, is
28 amended to read:
29 212.097 Designated Urban High-Crime Area Job Tax
30 Credit Area Program.--
31 (1) As used in this section, the term:
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1 (a) "Eligible business" means any sole proprietorship,
2 firm, partnership, or corporation that is located in a
3 designated urban job tax credit area qualified county and is
4 predominantly engaged in, or is headquarters for a business
5 predominantly engaged in, activities usually provided for
6 consideration by firms classified within the following
7 standard industrial classifications: SIC 01-SIC 09
8 (agriculture, forestry, and fishing); SIC 20-SIC 39
9 (manufacturing); SIC 52-SIC 57 and SIC 59 (retail); SIC 422
10 (public warehousing and storage); SIC 70 (hotels and other
11 lodging places); SIC 7391 (research and development); SIC 781
12 (motion picture production and allied services); SIC 7992
13 (public golf courses); and SIC 7996 (amusement parks); and a
14 targeted industry eligible for the qualified target industry
15 business tax refund under s. 288.106. A call center or similar
16 customer service operation that services a multistate market
17 or international market is also an eligible business. In
18 addition, the Office of Tourism, Trade, and Economic
19 Development may, as part of its final budget request submitted
20 pursuant to s. 216.023, recommend additions to or deletions
21 from the list of standard industrial classifications used to
22 determine an eligible business, and the Legislature may
23 implement such recommendations. Excluded from eligible
24 receipts are receipts from retail sales, except such receipts
25 for SIC 52-SIC 57 and SIC 59 (retail) hotels and other lodging
26 places classified in SIC 70, public golf courses in SIC 7992,
27 and amusement parks in SIC 7996. For purposes of this
28 paragraph, the term "predominantly" means that more than 50
29 percent of the business's gross receipts from all sources is
30 generated by those activities usually provided for
31 consideration by firms in the specified standard industrial
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1 classification. The determination of whether the business is
2 located in a designated urban job tax credit qualified
3 high-crime area and the tier ranking of that area must be
4 based on the date of application for the credit under this
5 section. Commonly owned and controlled entities are to be
6 considered a single business entity.
7 (b) "Qualified employee" means any employee of an
8 eligible business who performs duties in connection with the
9 operations of the business on a regular, full-time basis for
10 an average of at least 36 hours per week for at least 3 months
11 within the designated urban job tax credit qualified
12 high-crime area in which the eligible business is located. An
13 owner or partner of the eligible business is not a qualified
14 employee. The term also includes an employee leased from an
15 employee leasing company licensed under chapter 468, if such
16 employee has been continuously leased to the employer for an
17 average of at least 36 hours per week for more than 6 months.
18 (c) "New business" means any eligible business first
19 beginning operation on a site in a designated urban job tax
20 credit qualified high-crime area and clearly separate from any
21 other commercial or business operation of the business entity
22 within a designated urban job tax credit qualified high-crime
23 area. A business entity that operated an eligible business
24 within a designated urban job tax credit qualified high-crime
25 area within the 48 months before the period provided for
26 application by subsection (2) is not considered a new
27 business.
28 (d) "Existing business" means any eligible business
29 that does not meet the criteria for a new business.
30 (e) "Designated urban job tax credit Qualified
31 high-crime area" means an area selected by the Office of
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1 Tourism, Trade, and Economic Development in the following
2 manner: every third year, the office shall rank and tier those
3 areas nominated under subsection (7), according to the highest
4 level of distress experienced in the categories enumerated
5 under subsection (7). The Office of Tourism, Trade, and
6 Economic Development shall designate the 30
7 highest-distress-profile urban areas as eligible participants
8 under the urban job tax credit program following prioritized
9 criteria:
10 1. Highest arrest rates within the geographic area for
11 violent crime and for such other crimes as drug sale, drug
12 possession, prostitution, vandalism, and civil disturbances;
13 2. Highest reported crime volume and rate of specific
14 property crimes such as business and residential burglary,
15 motor vehicle theft, and vandalism;
16 3. Highest percentage of reported index crimes that
17 are violent in nature;
18 4. Highest overall index crime volume for the area;
19 and
20 5. Highest overall index crime rate for the geographic
21 area.
22
23 Tier-one areas are ranked 1 through 5 and represent the
24 highest crime areas according to this ranking. Tier-two areas
25 are ranked 6 through 10 according to this ranking. Tier-three
26 areas are ranked 11 through 15. Notwithstanding this
27 definition, "designated urban job tax credit qualified
28 high-crime area" also means an area that has been designated
29 as a federal Empowerment Zone pursuant to the Taxpayer Relief
30 Act of 1997 or the Community Tax Relief Act of 2000. Such a
31 designated area is ranked in tier three until the areas are
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1 reevaluated by the Office of Tourism, Trade, and Economic
2 Development.
3 (f) "Central business district" means an area
4 comprised of at least 80 percent commercial and government
5 buildings and properties; characterized by a high
6 concentration of retail businesses, service businesses,
7 offices, theaters, and hotels; and located in a Department of
8 Transportation Urban Service Area.
9 (g) "Urban" means a densely populated nonrural area
10 located within an urban county which consists of a cluster of
11 one or more census blocks, each of which has a population
12 density of at least 400 people per square mile, or an area
13 defined by the most recent United States Census as urban.
14 (2) A new eligible business may apply for a tax credit
15 under this subsection once at any time during its first year
16 of operation. A new eligible business in a designated urban
17 job tax credit tier-one qualified high-crime area which has at
18 least 10 qualified employees on the date of application shall
19 receive a $1,500 tax credit for each such employee. A new
20 eligible business in a tier-two qualified high-crime area
21 which has at least 20 qualified employees on the date of
22 application shall receive a $1,000 tax credit for each such
23 employee. A new eligible business in a tier-three qualified
24 high-crime area which has at least 30 qualified employees on
25 the date of application shall receive a $500 tax credit for
26 each such employee.
27 (3) An existing eligible business may apply for a tax
28 credit under this subsection at any time it is entitled to
29 such credit, except as restricted by this subsection. An
30 existing eligible business in a designated urban job tax
31 credit tier-one qualified high-crime area which on the date of
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1 application has at least 10 5 more qualified employees than it
2 had 1 year prior to its date of application shall receive a
3 $1,500 tax credit for each such additional employee. An
4 existing eligible business in a tier-two qualified high-crime
5 area which on the date of application has at least 10 more
6 qualified employees than it had 1 year prior to its date of
7 application shall receive a $1,000 credit for each such
8 additional employee. An existing business in a tier-three
9 qualified high-crime area which on the date of application has
10 at least 15 more qualified employees than it had 1 year prior
11 to its date of application shall receive a $500 tax credit for
12 each such additional employee. An existing eligible business
13 may apply for the credit under this subsection no more than
14 once in any 12-month period. Any existing eligible business
15 that received a credit under subsection (2) may not apply for
16 the credit under this subsection sooner than 12 months after
17 the application date for the credit under subsection (2).
18 (4) For any new eligible business receiving a credit
19 pursuant to subsection (2), an additional $500 credit shall be
20 provided for any qualified employee who is a welfare
21 transition program participant. For any existing eligible
22 business receiving a credit pursuant to subsection (3), an
23 additional $500 credit shall be provided for any qualified
24 employee who is a welfare transition program participant. Such
25 employee must be employed on the application date and have
26 been employed less than 1 year. This credit shall be in
27 addition to other credits pursuant to this section regardless
28 of the tier-level of the high-crime area. Appropriate
29 documentation concerning the eligibility of an employee for
30 this credit must be submitted as determined by the department.
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1 (5) To be eligible for a tax credit under subsection
2 (3), the number of qualified employees employed 1 year prior
3 to the application date must be no lower than the number of
4 qualified employees on the application date on which a credit
5 under this section was based for any previous application,
6 including an application under subsection (2).
7 (6) Any county or municipality, or a county and one or
8 more municipalities together, may apply to the Office of
9 Tourism, Trade, and Economic Development for the designation
10 of an area as a designated urban job tax credit high-crime
11 area after the adoption by the governing body or bodies of a
12 resolution that:
13 (a) Finds that an urban a high-crime area exists in
14 such county or municipality, or in both the county and one or
15 more municipalities, which chronically exhibits extreme and
16 unacceptable levels of poverty, unemployment, physical
17 deterioration, and economic disinvestment;
18 (b) Determines that the rehabilitation, conservation,
19 or redevelopment, or a combination thereof, of such an urban a
20 high-crime area is necessary in the interest of the health,
21 safety, and welfare of the residents of such county or
22 municipality, or such county and one or more municipalities;
23 and
24 (c) Determines that the revitalization of such an
25 urban a high-crime area can occur if the public sector or
26 private sector can be induced to invest its own resources in
27 productive enterprises that build or rebuild the economic
28 viability of the area.
29 (7) The governing body of the entity nominating the
30 area shall demonstrate provide to the Office of Tourism,
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1 Trade, and Economic Development that the area meets the
2 following:
3 (a) Income characteristics:
4 1. Forty percent of area residents are earning wages
5 on an annual basis that are equal to or less than the annual
6 wage of a person who is earning minimum wage; or
7 2. More than 20 percent of residents or families live
8 below the federal standard of poverty for individuals or a
9 family of four. The overall index crime rate for the
10 geographic area;
11 (b) Education characteristics:
12 1. Has a high school dropout rate higher than the
13 county average; or
14 2. Has a high school graduation rate lower than the
15 state average. The overall index crime volume for the area;
16 (c) Workforce and employment characteristics:
17 1. Has an unemployment rate at least 3 percentage
18 points higher than the state's unemployment rate;
19 2. More than 50 percent of families subject to the
20 welfare-to-work transition time limit are either within 6
21 months of the time limit or are receiving cash assistance
22 under a period of hardship extension to the time limit; or
23 3. Is identified as a labor surplus area using the
24 criteria established by the United States Department of
25 Labor's Employment and Training Administration. The percentage
26 of reported index crimes that are violent in nature;
27 (d) Crime characteristics:
28 1. Has an arrest rate higher than the state's average
29 rate for such crimes as drug sale, drug possession,
30 prostitution, vandalism, and civil disturbances, as recorded
31 by total crime index of the Department of Law Enforcement; or
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1 2. Ranks in the top 30 percent of zip codes with
2 reported crimes that are violent in nature. The reported crime
3 volume and rate of specific property crimes such as business
4 and residential burglary, motor vehicle theft, and vandalism;
5 and
6 (e) Residential and commercial property related
7 characteristics:
8 1. Fifty percent or more of area residents rent;
9 2.a. Property values are within the lower 50 percent
10 of the county's assessed property values;
11 b. More than 5 percent of area homes, apartments, or
12 buildings are abandoned, have been condemned within the
13 previous 24 months, or have a greater number of violations of
14 the Florida Building Code than recorded in the remainder of
15 the county or municipality; or
16 c. Tax or special assessment delinquencies exceed the
17 fair value of the land. The arrest rates within the geographic
18 area for violent crime and for such other crimes as drug sale,
19 drug possession, prostitution, disorderly conduct, vandalism,
20 and other public-order offenses.
21 (8) A municipality, or a county and one or more
22 municipalities together, may not nominate more than one urban
23 high-crime area. However, any county as defined by s.
24 125.011(1) may nominate no more than three urban high-crime
25 areas.
26 (9)(a) An area nominated by a county or municipality,
27 or a county and one or more municipalities together, for
28 designation as an urban job tax credit a high-crime area shall
29 be eligible only if it meets the following criteria:
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1 1.(a) The selected area does not exceed 20 square
2 miles and either has a continuous boundary or consists of not
3 more than three noncontiguous parcels.;
4 2.(b) The selected area does not exceed the following
5 mileage limitation:
6 a.1. For areas communities having a total population
7 of 150,000 persons or more, the selected area does not exceed
8 20 square miles and is within 10 miles of the central business
9 district of a city.
10 b.2. For areas communities having a total population
11 of 50,000 persons or more, but fewer than 150,000 persons, the
12 selected area does not exceed 10 square miles and is within
13 7.5 miles of the central business district of a city.
14 c.3. For areas communities having a total population
15 of 20,000 persons or more, but fewer than 50,000 persons, the
16 selected area does not exceed 5 square miles and is within 5
17 miles of the central business district of a city.
18 d.4. For areas communities having a total population
19 of fewer than 20,000 persons, the selected area does not
20 exceed 3 square miles and is within 3 miles of the central
21 business district of a city.
22 (b) A designated urban job tax credit area may not
23 include any portion of a central business district, unless the
24 poverty rate for each census geographic block group in the
25 district is not less than 30 percent.
26 (10)(a) In order to claim this credit, an eligible
27 business must file under oath with the Office of Tourism,
28 Trade, and Economic Development a statement that includes the
29 name and address of the eligible business and any other
30 information that is required to process the application.
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1 (b) Within 30 working days after receipt of an
2 application for credit, the Office of Tourism, Trade, and
3 Economic Development shall review the application to determine
4 whether it contains all the information required by this
5 subsection and meets the criteria set out in this section.
6 Subject to the provisions of paragraph (c), the Office of
7 Tourism, Trade, and Economic Development shall approve all
8 applications that contain the information required by this
9 subsection and meet the criteria set out in this section as
10 eligible to receive a credit.
11 (c) The maximum credit amount that may be approved
12 during any calendar year is $5 million, of which $1 million
13 shall be exclusively reserved for tier-one areas. The
14 Department of Revenue, in conjunction with the Office of
15 Tourism, Trade, and Economic Development, shall notify the
16 governing bodies in areas designated under this section as
17 urban high-crime areas when the $5 million maximum amount has
18 been reached. Applications must be considered for approval in
19 the order in which they are received without regard to whether
20 the credit is for a new or existing business. This limitation
21 applies to the value of the credit as contained in approved
22 applications. Approved credits may be taken in the time and
23 manner allowed pursuant to this section.
24 (11) If the application is insufficient to support the
25 credit authorized in this section, the Office of Tourism,
26 Trade, and Economic Development shall deny the credit and
27 notify the business of that fact. The business may reapply for
28 this credit within 3 months after such notification.
29 (12) If the credit under this section is greater than
30 can be taken on a single tax return, excess amounts may be
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1 taken as credits on any tax return submitted within 12 months
2 after the approval of the application by the department.
3 (13) It is the responsibility of each business to
4 affirmatively demonstrate to the satisfaction of the
5 Department of Revenue that it meets the requirements of this
6 section.
7 (14) Any person who fraudulently claims this credit is
8 liable for repayment of the credit plus a mandatory penalty of
9 100 percent of the credit and is guilty of a misdemeanor of
10 the second degree, punishable as provided in s. 775.082 or s.
11 775.083.
12 (15) A corporation may take the credit under this
13 section against its corporate income tax liability, as
14 provided in s. 220.1895. However, a corporation that applies
15 its job tax credit against the tax imposed by chapter 220 may
16 not receive the credit provided for in this section. A credit
17 may be taken against only one tax.
18 (16) An eligible business may transfer any unused
19 credit in whole or in units of no less than 25 percent of the
20 remaining credit. The entity acquiring such credit may use it
21 in the same manner and with the same limitation as described
22 in this section. Such transferred credits may not be
23 transferred again although they may succeed to a surviving or
24 acquiring entity subject to the same conditions and
25 limitations described in this section.
26 (17)(16) The department shall adopt rules governing
27 the manner and form of applications for credit or transfers of
28 credit and may establish guidelines concerning the requisites
29 for an affirmative showing of qualification for the credit
30 under this section.
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1 Section 3. Section 220.1895, Florida Statutes, is
2 amended to read:
3 220.1895 Rural Job Tax Credit and Designated Urban
4 High-Crime Area Job Tax Credit Area.--There shall be allowed a
5 credit against the tax imposed by this chapter amounts
6 approved by the Office of Tourism, Trade, and Economic
7 Development pursuant to the Rural Job Tax Credit Program in s.
8 212.098 and the Designated Urban High-Crime Area Job Tax
9 Credit Area Program in s. 212.097. A corporation that uses its
10 credit against the tax imposed by this chapter may not take
11 the credit against the tax imposed by chapter 212. If any
12 credit granted under this section is not fully used in the
13 first year for which it becomes available, the unused amount
14 may be carried forward for a period not to exceed 5 years. The
15 carryover may be used in a subsequent year when the tax
16 imposed by this chapter for such year exceeds the credit for
17 such year under this section after applying the other credits
18 and unused credit carryovers in the order provided in s.
19 220.02(8). The Office of Tourism, Trade, and Economic
20 Development shall conduct a review of the Urban High-Crime
21 Area Job Tax Credit and the Rural Job Tax Credit Program and
22 submit its report to the Governor, the President of the
23 Senate, and the Speaker of the House of Representatives by
24 February 1, 2000.
25 Section 4. Paragraphs (e) and (h) of subsection (1) of
26 section 220.191, Florida Statutes, are amended to read:
27 220.191 Capital investment tax credit.--
28 (1) DEFINITIONS.--For purposes of this section:
29 (e) "Jobs" means full-time equivalent positions, as
30 such term is consistent with terms used by the Agency for
31 Workforce Innovation Department of Labor and Employment
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1 Security and the United States Department of Labor for
2 purposes of unemployment tax administration and employment
3 estimation, resulting directly from a project in this state.
4 Such term does not include temporary construction jobs
5 involved in the construction of the project facility.
6 (h) "Qualifying project" means a new or expanding
7 facility in this state which creates at least 100 new jobs in
8 this state, and is otherwise eligible for certification by the
9 office as a qualified target industry business pursuant to s.
10 288.106, and exports at least 50 percent of its product or
11 service outside of this state in one of the high-impact
12 sectors identified by Enterprise Florida, Inc., and certified
13 by the office pursuant to s. 288.108(6), including, but not
14 limited to, aviation, aerospace, automotive, and silicon
15 technology industries.
16 Section 5. Paragraph (e) of subsection (1) and
17 paragraph (b) of subsection (4) of section 288.1045, Florida
18 Statutes, are amended to read:
19 288.1045 Qualified defense contractor tax refund
20 program.--
21 (1) DEFINITIONS.--As used in this section:
22 (e) "Department of Defense contract" means a
23 competitively bid Department of Defense contract or
24 subcontract or a competitively bid federal agency contract or
25 subcontract issued on behalf of the Department of Defense for
26 manufacturing, assembling, fabricating, research, development,
27 or design with a duration of 2 or more years, but excluding
28 any contract or subcontract to provide goods, improvements to
29 real or tangible property, or services directly to or for any
30 particular military base or installation in this state. The
31 term includes contracts or subcontracts for products or
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1 services for military or homeland security use which contracts
2 or subcontracts are approved by the United States Department
3 of Defense, the United States Department of State, or the
4 United States Department of Homeland Security Coast Guard.
5 (4) QUALIFIED DEFENSE CONTRACTOR TAX REFUND
6 AGREEMENT.--
7 (b) Compliance with the terms and conditions of the
8 agreement is a condition precedent for receipt of tax refunds
9 each year. The failure to comply with the terms and conditions
10 of the agreement shall result in the loss of eligibility for
11 receipt of all tax refunds previously authorized pursuant to
12 this section, and the revocation of the certification as a
13 qualified applicant by the director, unless the qualified
14 applicant is eligible to receive and elects to accept a
15 prorated refund under paragraph (5)(g) or the office grants
16 the qualified applicant an economic-stimulus exemption.
17 1. A qualified applicant may submit, in writing, a
18 request to the office for an economic-stimulus exemption. The
19 request must provide quantitative evidence demonstrating how
20 negative economic conditions in the qualified applicant's
21 industry, or specific acts of terrorism affecting the
22 qualified applicant, have prevented the qualified applicant
23 from complying with the terms and conditions of its tax refund
24 agreement.
25 2. Upon receipt of a request under subparagraph 1.,
26 the director shall have 45 days to notify the requesting
27 qualified applicant, in writing, if its exemption has been
28 granted or denied. In determining if an exemption should be
29 granted, the director shall consider the extent to which
30 negative economic conditions in the requesting qualified
31 applicant's industry, or specific acts of terrorism affecting
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1 the qualified applicant, have prevented the qualified
2 applicant from complying with the terms and conditions of its
3 tax refund agreement.
4 3. As a condition for receiving a prorated refund
5 under paragraph (5)(g) or an economic-stimulus exemption under
6 this paragraph, a qualified applicant must agree to
7 renegotiate its tax refund agreement with the office to, at a
8 minimum, ensure that the terms of the agreement comply with
9 current law and office procedures governing application for
10 and award of tax refunds. Upon approving the award of a
11 prorated refund or granting an economic-stimulus exemption,
12 the office shall renegotiate the tax refund agreement with the
13 qualified applicant as required by this subparagraph. When
14 amending the agreement of a qualified applicant 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 applicant may submit a request for an
18 economic-stimulus exemption to the office in lieu of any tax
19 refund claim scheduled to be submitted after January 1, 2001,
20 but before June 30, 2004 July 1, 2003. However, a qualified
21 applicant that has received at least one economic-stimulus
22 exemption may not apply for an additional exemption.
23 5. A qualified applicant that receives an
24 economic-stimulus exemption may not receive a tax refund for
25 the period covered by the exemption.
26 Section 6. Paragraph (o) of subsection (1) and
27 paragraph (b) of subsection (4) of section 288.106, Florida
28 Statutes, are amended to read:
29 288.106 Tax refund program for qualified target
30 industry businesses.--
31 (1) DEFINITIONS.--As used in this section:
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1 (o) "Target industry business" means a corporate
2 headquarters business or any business that is engaged in one
3 of the target industries identified pursuant to the following
4 criteria developed by the office in consultation with
5 Enterprise Florida, Inc.:
6 1. Future growth.--Industry forecasts should indicate
7 strong expectation for future growth in both employment and
8 output, according to the most recent available data. Special
9 consideration should be given to Florida's growing access to
10 international markets or to replacing imports.
11 2. Stability.--The industry should not be subject to
12 periodic layoffs, whether due to seasonality or sensitivity to
13 volatile economic variables such as weather. The industry
14 should also be relatively resistant to recession, so that the
15 demand for products of this industry is not necessarily
16 subject to decline during an economic downturn.
17 3. High wage.--The industry should pay relatively high
18 wages compared to statewide or area averages.
19 4. Market and resource independent.--The location of
20 industry businesses should not be dependent on Florida markets
21 or resources as indicated by industry analysis.
22 5. Industrial base diversification and
23 strengthening.--The industry should contribute toward
24 expanding or diversifying the state's or area's economic base,
25 as indicated by analysis of employment and output shares
26 compared to national and regional trends. Special
27 consideration should be given to industries that strengthen
28 regional economies by adding value to basic products or
29 building regional industrial clusters as indicated by industry
30 analysis. Special consideration also should be given to
31
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1 developing strong industrial clusters, including defense and
2 homeland security.
3 6. Economic benefits.--The industry should have strong
4 positive impacts on or benefits to the state and regional
5 economies.
6
7 The office, in consultation with Enterprise Florida, Inc.,
8 shall develop a list of such target industries annually and
9 submit such list as part of the final agency legislative
10 budget request submitted pursuant to s. 216.023(1). A target
11 industry business may not include any industry engaged in
12 retail activities; any electrical utility company; any
13 phosphate or other solid minerals severance, mining, or
14 processing operation; any oil or gas exploration or production
15 operation; or any firm subject to regulation by the Division
16 of Hotels and Restaurants of the Department of Business and
17 Professional Regulation.
18 (4) TAX REFUND AGREEMENT.--
19 (b) Compliance with the terms and conditions of the
20 agreement is a condition precedent for the receipt of a tax
21 refund each year. The failure to comply with the terms and
22 conditions of the tax refund agreement results in the loss of
23 eligibility for receipt of all tax refunds previously
24 authorized under this section and the revocation by the
25 director of the certification of the business entity as a
26 qualified target industry business, unless the business is
27 eligible to receive and elects to accept a prorated refund
28 under paragraph (5)(d) or the office grants the business an
29 economic-stimulus exemption.
30 1. A qualified target industry business may submit, in
31 writing, a request to the office for an economic-stimulus
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1 exemption. The request must provide quantitative evidence
2 demonstrating how negative economic conditions in the
3 business's industry, or specific acts of terrorism affecting
4 the qualified target industry business, have prevented the
5 business from complying with the terms and conditions of its
6 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 business, in writing, if its exemption has been granted or
10 denied. In determining if an exemption should be granted, the
11 director shall consider the extent to which negative economic
12 conditions in the requesting business's industry, or specific
13 acts of terrorism affecting the qualified target industry
14 business, have prevented the business from complying with the
15 terms and conditions of its tax refund agreement.
16 3. As a condition for receiving a prorated refund
17 under paragraph (5)(d) or an economic-stimulus exemption under
18 this paragraph, a qualified target industry business must
19 agree to renegotiate its tax refund agreement with the office
20 to, at a minimum, ensure that the terms of the agreement
21 comply with current law and office procedures governing
22 application for and award of tax refunds. Upon approving the
23 award of a prorated refund or granting an economic-stimulus
24 exemption, the office shall renegotiate the tax refund
25 agreement with the business as required by this subparagraph.
26 When amending the agreement of a business 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 target industry business may submit a
30 request for an economic-stimulus exemption to the office in
31 lieu of any tax refund claim scheduled to be submitted after
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1 January 1, 2001, but before June 30, 2004 July 1, 2003.
2 However, a qualified target industry business that has
3 received at least one economic-stimulus exemption may not
4 apply for an additional exemption.
5 5. A qualified target industry business that receives
6 an economic-stimulus exemption may not receive a tax refund
7 for the period covered by the exemption.
8 Section 7. Notwithstanding section 14 of chapter
9 93-187, Laws of Florida, section 288.9515, Florida Statutes,
10 shall not stand repealed on December 31, 2003, as scheduled by
11 such law, but that section is reenacted and amended to read:
12 288.9515 Authorized technology development programs.--
13 (1) Enterprise Florida, Inc., may create technology
14 development and applications services, and may serve as an
15 umbrella organization for the coordination of information that
16 provides technology applications service providers throughout
17 the state which provide critical, managerial, technological,
18 scientific, and related financial and business expertise
19 essential for international and domestic competitiveness to
20 small-sized and medium-sized manufacturing and knowledge-based
21 service firms. Enterprise Florida, Inc., is authorized the
22 following powers in order to carry out these functions:
23 (a) Providing communication and coordination services
24 among technology development and applications service
25 providers throughout the state.
26 (b) Providing coordinated marketing services to
27 small-sized and medium-sized manufacturers in the state on
28 behalf of, and in partnership with, technology applications
29 service providers.
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1 (b)(c) Securing additional sources of funds on behalf
2 of, and in partnership with, technology-based businesses
3 applications service providers.
4 (c)(d) Developing plans and policies to assist
5 small-sized and medium-sized manufacturing companies or other
6 knowledge-based firms in Florida.
7 (e) Entering into contracts with technology
8 applications service providers for expanded availability of
9 high-quality assistance to small-sized and medium-sized
10 manufacturing companies or knowledge-based service firms,
11 including, but not limited to, technological, human resources
12 development, market planning, finance, and interfirm
13 collaboration. Enterprise Florida, Inc., shall ensure that all
14 contracts in excess of $20,000 for the delivery of such
15 assistance to Florida firms shall be based on competitive
16 requests for proposals and shall establish clear standards for
17 the delivery of services under such contracts. Such standards
18 include, but are not limited to:
19 1. The ability and capacity to deliver services in
20 sufficient quality and quantity.
21 2. The ability and capacity to deliver services in a
22 timely manner.
23 3. The ability and capacity to meet the needs of firms
24 in the proposed market area.
25 (d)(f) Assisting other educational institutions,
26 enterprises, or the entities providing business assistance to
27 small-sized and medium-sized manufacturing and knowledge-based
28 services enterprises.
29 (g) Establishing a system to evaluate the
30 effectiveness and efficiency of technology applications
31 services provided to small-sized and medium-sized enterprises.
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1 (e)(h) Establishing special education and
2 informational programs for Florida enterprises and for
3 educational institutions and enterprises providing business
4 assistance to Florida enterprises.
5 (f)(i) Assisting in evaluating and documenting the
6 needs of firms in this state for technology development and
7 application services, and developing means to ensure that
8 these needs are met, consistent with the powers provided for
9 in this subsection.
10 (g)(j) Maintaining an office in such place or places
11 as the board of directors of Enterprise Florida, Inc.,
12 approves.
13 (h)(k) Making and executing contracts with any person,
14 enterprise, educational institution, association, or any other
15 entity necessary or convenient for the performance of its
16 duties and the exercise of the powers and functions of
17 Enterprise Florida, Inc., under this subsection.
18 (i)(l) Receiving funds from any source to carry out
19 the purposes of providing technology development and
20 applications services, including, but not limited to, gifts or
21 grants from any department, agency, or instrumentality of the
22 United States or of the state, or any enterprise or person,
23 for any purpose consistent with the provisions of this
24 subsection.
25 (2) When choosing contractors under this section,
26 preference shall be given to existing institutions,
27 organizations, and enterprises so long as these existing
28 institutions, organizations, and enterprises demonstrate the
29 ability to perform at standards established by Enterprise
30 Florida, Inc., under paragraph (1)(e). Neither the provisions
31 of ss. 288.9511-288.9517 nor the actions taken by Enterprise
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1 Florida, Inc., under this section shall impair or hinder the
2 operations, performance, or resources of any existing
3 institution, organization, or enterprise.
4 (3) Enterprise Florida, Inc., may create a technology
5 development financing fund, to be called the Florida
6 Technology Research Investment Fund. The fund shall increase
7 technology development in this state by investing in
8 technology development projects that have the potential to
9 generate investment-grade technologies of importance to the
10 state's economy as evidenced by the willingness of private
11 businesses to coinvest in such projects. Enterprise Florida,
12 Inc., may also demonstrate and develop effective approaches
13 to, and benefits of, commercially oriented research
14 collaborations between businesses, universities, and state and
15 federal agencies and organizations. Enterprise Florida, Inc.,
16 shall endeavor to maintain the fund as a self-supporting fund
17 once the fund is sufficiently capitalized under Enterprise
18 Florida, Inc., program guidelines as reflected in the minimum
19 funding report required in s. 288.9516. The technology
20 research investment projects may include, but are not limited
21 to:
22 (a) Technology development projects expected to lead
23 to a specific investment-grade technology that is of
24 importance to industry in this state.
25 (b) Technology development centers and facilities
26 expected to generate a stream of products and processes with
27 commercial application of importance to industry in this
28 state.
29 (c) Technology development projects that have, or are
30 currently using, other federal or state funds such as federal
31 Small Business Innovation Research awards.
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1 (4) Enterprise Florida, Inc., shall invest moneys
2 contained in the Florida Technology Research Investment Fund
3 in technology application research or for technology
4 development projects that have the potential for commercial
5 market application. The partnership shall coordinate any
6 investment in any space-related technology projects with the
7 Florida Space Authority and the Technological Research and
8 Development Authority.
9 (a) The investment of moneys contained in the Florida
10 Technology Research Investment Fund is limited to qualified
11 investments in qualified securities in which a private
12 enterprise in this state coinvests at least 40 percent of the
13 total project costs, in conjunction with other cash or noncash
14 investments from state educational institutions, state and
15 federal agencies, or other institutions.
16 (b) All moneys in the Florida Technology Research
17 Investment Fund shall be continuously appropriated to the fund
18 and may be used for loan guarantees, letter of credit
19 guarantees, cash reserves for loan and letter of credit
20 guarantees, payments of claims pursuant to contracts for
21 guarantees, subordinated loans, loans with warrants, royalty
22 investments, equity investments, and For the purposes of this
23 fund, qualified securities include loans, loans convertible to
24 equity, equity, loans with warrants attached that are
25 beneficially owned by the board, royalty agreements, or any
26 other contractual arrangements through which the Florida
27 Technology Research Investment Fund receives an interest,
28 rights, return of funds, or other consideration, and may be
29 used for operations of the fund. All such uses of moneys in
30 the fund are qualified investments arrangement in which the
31 board is providing scientific and technological services to
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1 any federal, state, county, or municipal agency, or to any
2 individual, corporation, enterprise, association, or any other
3 entity involving technology development. Any claim against the
4 fund or Enterprise Florida, Inc., relating to investment of
5 moneys in the fund shall be paid solely from the fund. Neither
6 the credit nor the taxing power of the state shall be pledged
7 to secure the fund or moneys in the fund, other than from
8 moneys appropriated or assigned to the fund, and the state
9 shall not be liable or obligated in any way for any claims
10 against the fund or against Enterprise Florida, Inc.
11 (c) Not more than $175,000 or 5 percent of the
12 revenues generated by investment of moneys contained in the
13 Florida Technology Research Investment Fund plus 5 percent of
14 the revenues generated by investments under the Florida Small
15 Business Technology Growth Program under s. 288.95155,
16 whichever is greater, may be used on an annual basis to pay
17 the combined operating expenses associated with operation of
18 the Florida Technology Research Investment Fund and the
19 Florida Small Business Technology Growth Program.
20 (d) In the event of liquidation or dissolution of
21 Enterprise Florida, Inc., or the Florida Technology Research
22 Investment Fund, any rights or interests in a qualified
23 security or portion of a qualified security purchased with
24 moneys invested by the State of Florida shall vest in the
25 state, under the control of the State Board of Administration.
26 The state is entitled to, in proportion to the amount of
27 investment in the fund by the state, any balance of funds
28 remaining in the Florida Technology Research Investment Fund
29 after payment of all debts and obligations upon liquidation or
30 dissolution of Enterprise Florida, Inc., or the fund.
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1 (e) The investment of funds contained in the Florida
2 Technology Research Investment Fund does not constitute a
3 debt, liability, or obligation of the State of Florida or of
4 any political subdivision thereof, or a pledge of the faith
5 and credit of the state or of any such political subdivision.
6 (5) Enterprise Florida, Inc., may create technology
7 commercialization programs in partnership with private
8 enterprises, educational institutions, and other institutions
9 to increase the rate at which technologies with potential
10 commercial application are moved from university, public, and
11 industry laboratories into the marketplace. Such programs
12 shall be created based upon research to be conducted by
13 Enterprise Florida, Inc.
14 (6) Enterprise Florida, Inc., shall coordinate with
15 local and regional economic development organizations to
16 facilitate a statewide entrepreneurship strategy to stimulate
17 the growth of start-up businesses and technology innovations
18 in this state. This strategy should include, but need not be
19 limited to, technology transfer coordination, university
20 linkages, entrepreneurial networks and training, and start-up
21 capital access, including the formation and growth of
22 individual and business networks that may be willing to invest
23 in start-up businesses in this state.
24 Section 8. Section 288.9517, Florida Statutes, is
25 repealed.
26 Section 9. Section 14 of chapter 93-187, Laws of
27 Florida, is repealed.
28 Section 10. This act shall take effect July 1, 2003.
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 CS/SB 2328 & 2252
3
4 The CS differs from the bill as filed in that it requires
Enterprise Florida to coordinate with local and regional
5 economic development organizations to facilitate a statewide
entrepreneurship strategy to stimulate the growth of start-up
6 businesses and technology innovations in Florida.
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