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39	repealed June 30, 2004.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