HB 0691 2003
1	CHAMBER ACTION
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6	The Commerce Committee recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to economic development incentive
12	programs; amending s. 220.191, F.S.; including certain
13	financial services facilities as a qualified project for
14	purposes of the capital investment tax credit; providing
15	for future repeal; amending s. 288.1045, F.S.; revising a
16	definition; amending s. 288.106, F.S.; revising a
17	definition of target industry business to include defense
18	and homeland security businesses; extending a deadline for
19	application for a prorated tax refund under an economic
20	stimulus exemption; amending s. 288.1088, F.S.; deleting a
21	function of the Executive Office of the Governor relating
22	to project approval recommendations and release of certain
23	funds; authorizing the Governor to reallocate unencumbered
24	funds in the Quick Action Closing Fund to supplement
25	certain economic development programs and operations in
26	emergency or special circumstances; providing for
27	reallocation approval and fund release recommendations by
28	the Executive Office of the Governor; providing an
29	effective date.
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31	Be It Enacted by the Legislature of the State of Florida:
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33	Section 1. Section 220.191, Florida Statutes, is amended
34	to read:
35	220.191 Capital investment tax credit.--
36	(1) DEFINITIONS.--For purposes of this section:
37	(h) "Qualifying project" means:
38	1.A new or expanding facility in this state which creates
39	at least 100 new jobs in this state and is in one of the high-
40	impact sectors identified by Enterprise Florida, Inc., and
41	certified by the office pursuant to s. 288.108(6), including,
42	but not limited to, aviation, aerospace, automotive, and silicon
43	technology industries; or
44	2. A new financial services facility in this state, which
45	creates at least 2,000 new jobs in this state, pays an average
46	annual wage of at least $50,000, and makes a cumulative capital
47	investment of at least $30 million. This subparagraph is
48	repealed June 30, 2004.
49	Section 2. Paragraph (e) of subsection (1) of section
50	288.1045, Florida Statutes, is amended to read:
51	288.1045 Qualified defense contractor tax refund
52	program.--
53	(1) DEFINITIONS.--As used in this section:
54	(e) "Department of Defense contract" means a competitively
55	bid Department of Defense contract or subcontract or a
56	competitively bid federal agency contract or subcontract issued
57	on behalf of the Department of Defense for manufacturing,
58	assembling, fabricating, research, development, or design with a
59	duration of 2 or more years, but excluding any contract or
60	subcontract to provide goods, improvements to real or tangible
61	property, or services directly to or for any particular military
62	base or installation in this state. The term includes contracts
63	or subcontracts for products or services for military use or
64	homeland securitywhich contracts or subcontracts are approved
65	by the United States Department of Defense, the United States
66	Department of State, or the United States Department of Homeland
67	SecurityCoast Guard.
68	Section 3. Paragraph (o) of subsection (1) and paragraph
69	(b) of subsection (4) of section 288.106, Florida Statutes, are
70	amended to read:
71	288.106 Tax refund program for qualified target industry
72	businesses.--
73	(1) DEFINITIONS.--As used in this section:
74	(o) "Target industry business" means a corporate
75	headquarters business or any business that is engaged in one of
76	the target industries identified pursuant to the following
77	criteria developed by the office in consultation with Enterprise
78	Florida, Inc.:
79	1. Future growth.--Industry forecasts should indicate
80	strong expectation for future growth in both employment and
81	output, according to the most recent available data. Special
82	consideration should be given to Florida's growing access to
83	international markets or to replacing imports.
84	2. Stability.--The industry should not be subject to
85	periodic layoffs, whether due to seasonality or sensitivity to
86	volatile economic variables such as weather. The industry should
87	also be relatively resistant to recession, so that the demand
88	for products of this industry is not necessarily subject to
89	decline during an economic downturn.
90	3. High wage.--The industry should pay relatively high
91	wages compared to statewide or area averages.
92	4. Market and resource independent.--The location of
93	industry businesses should not be dependent on Florida markets
94	or resources as indicated by industry analysis. Special
95	consideration should be given to the development of strong
96	industrial clusters which include defense and homeland security
97	businesses.
98	5. Industrial base diversification and strengthening.--The
99	industry should contribute toward expanding or diversifying the
100	state's or area's economic base, as indicated by analysis of
101	employment and output shares compared to national and regional
102	trends. Special consideration should be given to industries that
103	strengthen regional economies by adding value to basic products
104	or building regional industrial clusters as indicated by
105	industry analysis.
106	6. Economic benefits.--The industry should have strong
107	positive impacts on or benefits to the state and regional
108	economies.
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110	The office, in consultation with Enterprise Florida, Inc., shall
111	develop a list of such target industries annually and submit
112	such list as part of the final agency legislative budget request
113	submitted pursuant to s. 216.023(1). A target industry business
114	may not include any industry engaged in retail activities; any
115	electrical utility company; any phosphate or other solid
116	minerals severance, mining, or processing operation; any oil or
117	gas exploration or production operation; or any firm subject to
118	regulation by the Division of Hotels and Restaurants of the
119	Department of Business and Professional Regulation.
120	(4) TAX REFUND AGREEMENT.--
121	(b) Compliance with the terms and conditions of the
122	agreement is a condition precedent for the receipt of a tax
123	refund each year. The failure to comply with the terms and
124	conditions of the tax refund agreement results in the loss of
125	eligibility for receipt of all tax refunds previously authorized
126	under this section and the revocation by the director of the
127	certification of the business entity as a qualified target
128	industry business, unless the business is eligible to receive
129	and elects to accept a prorated refund under paragraph (5)(d) or
130	the office grants the business an economic-stimulus exemption.
131	1. A qualified target industry business may submit, in
132	writing, a request to the office for an economic-stimulus
133	exemption. The request must provide quantitative evidence
134	demonstrating how negative economic conditions in the business's
135	industry, or specific acts of terrorism affecting the qualified
136	target industry business, have prevented the business from
137	complying with the terms and conditions of its tax refund
138	agreement.
139	2. Upon receipt of a request under subparagraph 1., the
140	director shall have 45 days to notify the requesting business,
141	in writing, if its exemption has been granted or denied. In
142	determining if an exemption should be granted, the director
143	shall consider the extent to which negative economic conditions
144	in the requesting business's industry, or specific acts of
145	terrorism affecting the qualified target industry business, have
146	prevented the business from complying with the terms and
147	conditions of its tax refund agreement.
148	3. As a condition for receiving a prorated refund under
149	paragraph (5)(d) or an economic-stimulus exemption under this
150	paragraph, a qualified target industry business must agree to
151	renegotiate its tax refund agreement with the office to, at a
152	minimum, ensure that the terms of the agreement comply with
153	current law and office procedures governing application for and
154	award of tax refunds. Upon approving the award of a prorated
155	refund or granting an economic-stimulus exemption, the office
156	shall renegotiate the tax refund agreement with the business as
157	required by this subparagraph. When amending the agreement of a
158	business receiving an economic-stimulus exemption, the office
159	may extend the duration of the agreement for a period not to
160	exceed 1 year.
161	4. A qualified target industry business may submit a
162	request for an economic-stimulus exemption to the office in lieu
163	of any tax refund claim scheduled to be submitted after January
164	1, 2001, but before June 30, 2004July 1, 2003.
165	5. A qualified target industry business that receives an
166	economic-stimulus exemption may not receive a tax refund for the
167	period covered by the exemption.
168	Section 4. Paragraph (b) of subsection (3) of section
169	288.1088, Florida Statutes, is amended, and subsection (4) is
170	added to said section, to read:
171	288.1088 Quick Action Closing Fund.--
172	(3)
173	(b) Upon receipt of the evaluation and recommendation from
174	Enterprise Florida, Inc., the director shall recommend approval
175	or disapproval of a project for receipt of funds from the Quick
176	Action Closing Fund to the Governor. In recommending a project,
177	the director shall include proposed performance conditions that
178	the project must meet to obtain incentive funds. The Governor
179	shall consult with the President of the Senate and the Speaker
180	of the House of Representatives before giving final approval for
181	a project. The Executive Office of the Governor shall recommend
182	approval of a project and release of funds pursuant to the
183	legislative consultation and review requirements set forth in s.
184	216.177. The recommendation must include proposed performance
185	conditions the project must meet to obtain funds.
186	(4) The Governor may, in an emergency or special
187	circumstance, and in consultation with the President of the
188	Senate and the Speaker of the House of Representatives,
189	reallocate unencumbered funds appropriated to the Quick Action
190	Closing Fund to supplement statutorily created economic
191	development programs and operations. The Executive Office of the
192	Governor shall recommend approval of the transfer and release of
193	funds pursuant to the legislative consultation and review
194	requirements set forth in s. 216.177.
195	Section 5. This act shall take effect upon becoming a law.