Senate Bill sb2410c2

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    Florida Senate - 2003                    CS for CS for SB 2410

    By the Committees on Finance and Taxation; Commerce, Economic
    Opportunities, and Consumer Services; and Senator Garcia




    314-2524-03

  1                      A bill to be entitled

  2         An act relating to economic stimulus; amending

  3         s. 220.191, F.S.; redefining the term

  4         "qualifying project" for purposes of capital

  5         investment tax credits; amending s. 288.1045,

  6         F.S.; revising the definition of "Department of

  7         Defense contract" under the tax refund program

  8         for qualified defense contractors; extending

  9         the period applicable to a program exemption

10         under certain conditions; amending s. 288.106,

11         F.S.; providing for special consideration to be

12         given to defense and homeland security under

13         the tax refund program for qualified target

14         industry businesses; extending the period

15         applicable to a program exemption under certain

16         conditions; amending s. 288.1088, F.S.;

17         revising requirements and providing powers of

18         the Governor with respect to using funds in the

19         Quick Action Closing Fund; amending s. 445.048,

20         F.S.; continuing and expanding the Passport to

21         Economic Progress demonstration project;

22         providing appropriations; providing an

23         effective date.

24  

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

26  

27         Section 1.  Paragraph (h) of subsection (1) of section

28  220.191, Florida Statutes, is amended to read:

29         220.191  Capital investment tax credit.--

30         (1)  DEFINITIONS.--For purposes of this section:

31         (h)  "Qualifying project" means:

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 1         1.  A new or expanding facility in this state which

 2  creates at least 100 new jobs in this state and is in one of

 3  the high-impact sectors identified by Enterprise Florida,

 4  Inc., and certified by the office pursuant to s. 288.108(6),

 5  including, but not limited to, aviation, aerospace,

 6  automotive, and silicon technology industries; or.

 7         2.  A new financial services facility in this state

 8  which creates at least 2,000 new jobs in this state, pays an

 9  average annual wage of at least $50,000, and makes a capital

10  investment of at least $30 million. This subparagraph expires

11  June 30, 2004.

12         Section 2.  Paragraph (e) of subsection (1) and

13  paragraph (b) of subsection (4) of section 288.1045, Florida

14  Statutes, are amended to read:

15         288.1045  Qualified defense contractor tax refund

16  program.--

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

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

19  competitively bid Department of Defense contract or

20  subcontract or a competitively bid federal agency contract or

21  subcontract issued on behalf of the Department of Defense for

22  manufacturing, assembling, fabricating, research, development,

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

24  any contract or subcontract to provide goods, improvements to

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

26  particular military base or installation in this state. The

27  term includes contracts or subcontracts for products or

28  services for military or homeland security use which contracts

29  or subcontracts are approved by the United States Department

30  of Defense, the United States Department of State, or the

31  United States Department of Homeland Security Coast Guard.

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 1         (4)  QUALIFIED DEFENSE CONTRACTOR TAX REFUND

 2  AGREEMENT.--

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

 4  agreement is a condition precedent for receipt of tax refunds

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

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

 7  receipt of all tax refunds previously authorized pursuant to

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

 9  qualified applicant by the director, unless the qualified

10  applicant is eligible to receive and elects to accept a

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

12  the qualified applicant an economic-stimulus exemption.

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

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

15  request must provide quantitative evidence demonstrating how

16  negative economic conditions in the qualified applicant's

17  industry, or specific acts of terrorism affecting the

18  qualified applicant, have prevented the qualified applicant

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

20  agreement.

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

22  the director shall have 45 days to notify the requesting

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

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

25  granted, the director shall consider the extent to which

26  negative economic conditions in the requesting qualified

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

28  the qualified applicant, have prevented the qualified

29  applicant from complying with the terms and conditions of its

30  tax refund agreement.

31  

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 1         3.  As a condition for receiving a prorated refund

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

 3  this paragraph, a qualified applicant must agree to

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

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

 6  current law and office procedures governing application for

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

 8  prorated refund or granting an economic-stimulus exemption,

 9  the office shall renegotiate the tax refund agreement with the

10  qualified applicant as required by this subparagraph. When

11  amending the agreement of a qualified applicant receiving an

12  economic-stimulus exemption, the office may extend the

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

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

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

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

17  but before June 30, 2004 July 1, 2003. However, a qualified

18  applicant that has received at least one economic-stimulus

19  exemption may not apply for an additional exemption.

20         5.  A qualified applicant that receives an

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

22  the period covered by the exemption.

23         Section 3.  Paragraph (o) of subsection (1) and

24  paragraph (b) of subsection (4) of section 288.106, Florida

25  Statutes, are amended to read:

26         288.106  Tax refund program for qualified target

27  industry businesses.--

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

29         (o)  "Target industry business" means a corporate

30  headquarters business or any business that is engaged in one

31  of the target industries identified pursuant to the following

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 1  criteria developed by the office in consultation with

 2  Enterprise Florida, Inc.:

 3         1.  Future growth.--Industry forecasts should indicate

 4  strong expectation for future growth in both employment and

 5  output, according to the most recent available data.  Special

 6  consideration should be given to Florida's growing access to

 7  international markets or to replacing imports.

 8         2.  Stability.--The industry should not be subject to

 9  periodic layoffs, whether due to seasonality or sensitivity to

10  volatile economic variables such as weather.  The industry

11  should also be relatively resistant to recession, so that the

12  demand for products of this industry is not necessarily

13  subject to decline during an economic downturn.

14         3.  High wage.--The industry should pay relatively high

15  wages compared to statewide or area averages.

16         4.  Market and resource independent.--The location of

17  industry businesses should not be dependent on Florida markets

18  or resources as indicated by industry analysis.

19         5.  Industrial base diversification and

20  strengthening.--The industry should contribute toward

21  expanding or diversifying the state's or area's economic base,

22  as indicated by analysis of employment and output shares

23  compared to national and regional trends.  Special

24  consideration should be given to industries that strengthen

25  regional economies by adding value to basic products or

26  building regional industrial clusters as indicated by industry

27  analysis. Special consideration also should be given to

28  developing strong industrial clusters, including defense and

29  homeland security.

30  

31  

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 1         6.  Economic benefits.--The industry should have strong

 2  positive impacts on or benefits to the state and regional

 3  economies.

 4  

 5  The office, in consultation with Enterprise Florida, Inc.,

 6  shall develop a list of such target industries annually and

 7  submit such list as part of the final agency legislative

 8  budget request submitted pursuant to s. 216.023(1). A target

 9  industry business may not include any industry engaged in

10  retail activities; any electrical utility company; any

11  phosphate or other solid minerals severance, mining, or

12  processing operation; any oil or gas exploration or production

13  operation; or any firm subject to regulation by the Division

14  of Hotels and Restaurants of the Department of Business and

15  Professional Regulation.

16         (4)  TAX REFUND AGREEMENT.--

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

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

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

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

21  eligibility for receipt of all tax refunds previously

22  authorized under this section and the revocation by the

23  director of the certification of the business entity as a

24  qualified target industry business, unless the business is

25  eligible to receive and elects to accept a prorated refund

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

27  economic-stimulus exemption.

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

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

30  exemption. The request must provide quantitative evidence

31  demonstrating how negative economic conditions in the

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

 2  the qualified target industry business, have prevented the

 3  business from complying with the terms and conditions of its

 4  tax refund agreement.

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

 6  the director shall have 45 days to notify the requesting

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

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

 9  director shall consider the extent to which negative economic

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

11  acts of terrorism affecting the qualified target industry

12  business, have prevented the business from complying with the

13  terms and conditions of its tax refund agreement.

14         3.  As a condition for receiving a prorated refund

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

16  this paragraph, a qualified target industry business must

17  agree to renegotiate its tax refund agreement with the office

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

19  comply with current law and office procedures governing

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

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

22  exemption, the office shall renegotiate the tax refund

23  agreement with the business as required by this subparagraph.

24  When amending the agreement of a business receiving an

25  economic-stimulus exemption, the office may extend the

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

27         4.  A qualified target industry business may submit a

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

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

30  January 1, 2001, but before June 30, 2004 July 1, 2003.

31  However, a qualified target industry business that has

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 1  received at least one economic-stimulus exemption may not

 2  apply for an additional exemption.

 3         5.  A qualified target industry business that receives

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

 5  for the period covered by the exemption.

 6         Section 4.  Subsection (4) is added to section

 7  288.1088, Florida Statutes, to read:

 8         288.1088  Quick Action Closing Fund.--

 9         (4)  The Governor may, in an emergency or special

10  circumstance and with the approval of the President of the

11  Senate and the Speaker of the House of Representatives,

12  reallocate unencumbered funds appropriated to the Quick Action

13  Closing Fund to supplement statutorily created economic

14  development programs and operations. The Executive Office of

15  the Governor shall recommend approval of the transfer and

16  release of funds pursuant to the legislative consultation and

17  review requirements set forth in s. 216.177.

18         Section 5.  Section 445.048, Florida Statutes, is

19  amended to read:

20         445.048  Passport to Economic Progress demonstration

21  program.--

22         (1)  AUTHORIZATION.--Notwithstanding any law to the

23  contrary, Workforce Florida, Inc., in conjunction with the

24  Department of Children and Family Services and the Agency for

25  Workforce Innovation, shall implement a Passport to Economic

26  Progress demonstration program by November 1, 2001, consistent

27  with the provisions of this section in Hillsborough, and

28  Manatee, and Sarasota counties. Workforce Florida, Inc., must

29  consult with the applicable regional workforce boards and the

30  applicable local offices of the department which serve the

31  

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 1  demonstration areas and must encourage community input into

 2  the implementation process.

 3         (2)  WAIVERS.--If Workforce Florida, Inc., in

 4  consultation with the Department of Children and Family

 5  Services, finds that federal waivers would facilitate

 6  implementation of the demonstration program, the department

 7  shall immediately request such waivers, and Workforce Florida,

 8  Inc., shall report to the Governor, the President of the

 9  Senate, and the Speaker of the House of Representatives if any

10  refusal of the federal government to grant such waivers

11  prevents the implementation of the demonstration program. If

12  Workforce Florida, Inc., finds that federal waivers to

13  provisions of the Food Stamp Program would facilitate

14  implementation of the demonstration program, the Department of

15  Children and Family Services shall immediately request such

16  waivers in accordance with s. 414.175.

17         (3)  INCOME DISREGARD.--In order to provide an

18  additional incentive for employment, and notwithstanding the

19  amount specified in s. 414.095(12), for individuals residing

20  in the areas designated for this demonstration program, the

21  first $300 plus one-half of the remainder of earned income

22  shall be disregarded in determining eligibility for temporary

23  cash assistance. All other conditions and requirements of s.

24  414.095(12) shall continue to apply to such individuals.

25         (3)(4)  TRANSITIONAL BENEFITS AND SERVICES.--In order

26  to assist them in making the transition to economic

27  self-sufficiency, former recipients of temporary cash

28  assistance residing within the areas designated for this

29  demonstration program shall be eligible for the following

30  benefits and services:

31  

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 1         (a)  Notwithstanding the time period specified in s.

 2  445.030, transitional education and training support services

 3  as specified in s. 445.030 for up to 4 years after the family

 4  is no longer receiving temporary cash assistance;

 5         (b)  Notwithstanding the time period specified in s.

 6  445.031, transitional transportation support services as

 7  specified in s. 445.031 for up to 4 years after the family is

 8  no longer receiving temporary cash assistance; and

 9         (c)  Notwithstanding the time period specified in s.

10  445.032, transitional child care as specified in s. 445.032

11  for up to 4 years after the family is no longer receiving

12  temporary cash assistance.

13  

14  All other provisions of ss. 445.030, 445.031, and 445.032

15  shall apply to such individuals, as appropriate. This

16  subsection does not constitute an entitlement to transitional

17  benefits and services. If funds are insufficient to provide

18  benefits and services under this subsection, the board of

19  directors of Workforce Florida, Inc., may limit such benefits

20  and services or otherwise establish priorities for the

21  provisions of such benefits and services.

22         (4)  INCENTIVES TO ECONOMIC SELF-SUFFICIENCY.--

23         (a)  The Legislature finds that:

24         1.  There are former recipients of temporary cash

25  assistance who are working full time but whose incomes are

26  below the poverty level.

27         2.  Having incomes below the federal poverty level

28  makes such individuals particularly vulnerable to reliance on

29  public assistance despite their best efforts to achieve or

30  maintain economic independence through employment.

31  

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 1         3.  It is necessary to implement a performance-based

 2  program that defines economic incentives for achieving

 3  specific benchmarks toward self-sufficiency while the

 4  individual is working full time.

 5         (b)  Workforce Florida, Inc., in cooperation with the

 6  Department of Children and Family Services and the Agency for

 7  Workforce Innovation, shall offer performance-based incentive

 8  bonuses as a component of the Passport to Economic Progress

 9  demonstration program in the areas of the state which are

10  designated for demonstration programs. The bonuses do not

11  represent a program entitlement and shall be contingent on

12  achieving specific benchmarks prescribed in the

13  self-sufficiency plan. If the funds appropriated for this

14  purpose are insufficient to provide this financial incentive,

15  the board of directors of Workforce Florida, Inc., shall

16  reduce or suspend the bonuses in order not to exceed the

17  appropriation.

18         (5)  WAGE SUPPLEMENTATION.--

19         (a)  The Legislature finds that:

20         1.  There are former recipients of temporary cash

21  assistance who are working full time but whose incomes are

22  below the federal poverty level.

23         2.  Having incomes below the federal poverty level

24  makes such individuals particularly vulnerable to reliance on

25  public assistance despite their best efforts to achieve or

26  maintain economic independence through employment.

27         3.  It is necessary to supplement the wages of such

28  individuals for a limited period of time in order to assist

29  them in fulfilling the transition to economic

30  self-sufficiency.

31  

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 1         (b)  Workforce Florida, Inc., in cooperation with the

 2  Department of Children and Family Services and the Agency for

 3  Workforce Innovation, shall create a transitional wage

 4  supplementation program by November 1, 2001, as a component of

 5  the Passport to Economic Progress demonstration program in the

 6  areas designated for the demonstration program. This wage

 7  supplementation program does not constitute an entitlement to

 8  wage supplementation. If funds appropriated are insufficient

 9  to provide wage supplementation, the board of directors of

10  Workforce Florida, Inc., may limit wage supplementation or

11  otherwise establish priorities for wage supplementation.

12         (c)  To be eligible for wage supplementation under this

13  subsection, an individual must:

14         1.  Be a former recipient of temporary cash assistance

15  who last received such assistance on or after January 1, 2000;

16         2.  Be employed full time, which for the purposes of

17  this subsection means employment averaging at least 32 hours

18  per week, or, following Congressional passage of legislation

19  reauthorizing Temporary Assistance to Needy Families, comply

20  with the employment requirements of the reauthorized law; and

21         3.  Have an average family income for the 6 months

22  preceding the date of application for wage supplementation

23  which is less than 100 percent of the federal poverty level.

24         (d)  Workforce Florida, Inc., shall determine the

25  schedule for the payment of wage supplementation under this

26  subsection. An individual eligible for wage supplementation

27  under this subsection may receive a payment that equals the

28  amount necessary to bring the individual's total family income

29  for the period covered by the payment to 100 percent of the

30  federal poverty level. An individual may not receive wage

31  supplementation payments for more than a total of 12 months.

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 1         (e)  The wage supplementation program authorized by

 2  this subsection shall be administered through the regional

 3  workforce boards and the one-stop delivery system, under

 4  policy guidelines, criteria, and applications developed by

 5  Workforce Florida, Inc., in cooperation with the Department of

 6  Children and Family Services and the Agency for Workforce

 7  Innovation. To the maximum extent possible, the regional

 8  workforce boards shall use electronic debit card technologies

 9  to provide wage supplementation payments under this program.

10         (5)(6)  EVALUATIONS AND RECOMMENDATIONS.--Workforce

11  Florida, Inc., in conjunction with the Department of Children

12  and Family Services, the Agency for Workforce Innovation, and

13  the regional workforce boards in the areas designated for this

14  demonstration program, shall conduct a comprehensive

15  evaluation of the effectiveness of the demonstration program

16  operated under this section. By January 1, 2005 2003,

17  Workforce Florida, Inc., shall submit a report on such

18  evaluation to the Governor, the President of the Senate, and

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

20  include recommendations as to whether the demonstration

21  program should be expanded to other service areas or statewide

22  and whether the program should be revised to enhance its

23  administration or effectiveness.

24         (6)(7)  CONFLICTS.--If there is a conflict between the

25  implementation procedures described in this section and

26  federal requirements and regulations, federal requirements and

27  regulations shall control.

28         Section 6.  The sum of $1,785,000 is appropriated for

29  the 2003-2004 fiscal year from the Federal Grants Trust Fund

30  to the Department of Children and Family Services to provide

31  bonus payments pursuant to section 445.048(4), Florida

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 1  Statutes, and the sum of $1,074,200 is appropriated for the

 2  2003-2004 fiscal year from the Welfare Transition Trust Fund

 3  to the Agency for Workforce Innovation to extend transitional

 4  benefits and services.

 5         Section 7.  This act shall take effect upon becoming a

 6  law.

 7  

 8          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 9                            CS/SB 2410

10                                 

11  This committee substitute retains the current law requirement
    that the Governor consult with the Legislature concerning uses
12  of the Quick Action Closing Fund.  It also enacts
    modifications to the Passport to Economic Progress
13  demonstration project that were recommended by Workforce
    Florida, Inc.  It provides appropriations from the TANF block
14  grant to the Department of Children and Families and the
    Agency for Workforce Innovation.
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