HB 0809 2003
1	CHAMBER ACTION
2
3
4
5
6	The Committee on Finance & Tax recommends the following:
7
8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to economic stimulus; amending s. 212.097,
12	F.S.; revising provisions providing for an urban job tax
13	credit program to apply to designated urban job tax credit
14	areas rather than high crime areas; revising and providing
15	definitions, eligibility criteria, application procedures
16	and requirements, and area characteristics and criteria;
17	authorizing transfer of unused credits; specifying use of
18	transferred credits; amending s. 220.1895, F.S.;
19	conforming changes; removing a historical reference;
20	amending s. 288.1045, F.S.; revising the definition of
21	"Department of Defense contract" under the tax refund
22	program for qualified defense contractors; extending the
23	period applicable to a program exemption under certain
24	conditions; amending s. 288.106, F.S.; providing for
25	special consideration to be given to defense and homeland
26	security under the tax refund program for qualified target
27	industry businesses; extending the period applicable to a
28	program exemption under certain conditions; reenacting and
29	amending s. 288.9515, F.S.; revising and clarifying powers
30	of Enterprise Florida, Inc., to develop authorized
31	technology development programs; deleting a preference
32	requirement for contractor selections; clarifying a
33	requirement for capitalization of a technology development
34	financing fund; revising criteria and requirements for
35	investment of moneys in the Florida Technology Research
36	Investment Fund; providing for payment of certain claims
37	from the fund; specifying nonapplication of state credit
38	or taxing power; specifying absence of state liability for
39	certain claims; directing Enterprise Florida, Inc., to
40	facilitate the formation of investor networks; repealing
41	s. 288.9517, F.S., relating to audits of the technology
42	development board and confidentiality of the identity of
43	certain contributors to the board; repealing s. 14, ch.
44	93-187, Laws of Florida, relating to the future repeal and
45	review by the Legislature of statutes governing certain
46	technology development programs of Enterprise Florida,
47	Inc.; providing an effective date.
48
49	Be It Enacted by the Legislature of the State of Florida:
50
51	Section 1. Section 212.097, Florida Statutes, is amended
52	to read:
53	212.097 Designated Urban High-Crime Area Job Tax Credit
54	AreaProgram.--
55	(1) As used in this section, the term:
56	(a) "Eligible business" means any sole proprietorship,
57	firm, partnership, or corporation that is located in a
58	designated urban job tax credit areaqualified countyand is
59	predominantly engaged in, or is headquarters for a business
60	predominantly engaged in, activities usually provided for
61	consideration by firms classified within the following standard
62	industrial classifications: SIC 01-SIC 09 (agriculture,
63	forestry, and fishing); SIC 20-SIC 39 (manufacturing); SIC 52-
64	SIC 57 and SIC 59 (retail); SIC 422 (public warehousing and
65	storage); SIC 70 (hotels and other lodging places); SIC 7391
66	(research and development); SIC 781 (motion picture production
67	and allied services); SIC 7992 (public golf courses); andSIC
68	7996 (amusement parks); and a targeted industry eligible for the
69	qualified target industry business tax refund under s. 288.106.
70	A call center or similar customer service operation that
71	services a multistate market or international market is also an
72	eligible business. In addition, the Office of Tourism, Trade,
73	and Economic Development may, as part of its final budget
74	request submitted pursuant to s. 216.023, recommend additions to
75	or deletions from the list of standard industrial
76	classifications used to determine an eligible business, and the
77	Legislature may implement such recommendations. Excluded from
78	eligible receipts are receipts from retail sales, except such
79	receipts for SIC 52-SIC 57 and SIC 59(retail) hotels and other
80	lodging places classified in SIC 70, public golf courses in SIC
81	7992, and amusement parks in SIC 7996. For purposes of this
82	paragraph, the term "predominantly" means that more than 50
83	percent of the business's gross receipts from all sources is
84	generated by those activities usually provided for consideration
85	by firms in the specified standard industrial classification.
86	The determination of whether the business is located in a
87	designated urban job tax creditqualified high-crime area and
88	the tier ranking of that areamust be based on the date of
89	application for the credit under this section. Commonly owned
90	and controlled entities are to be considered a single business
91	entity.
92	(b) "Qualified employee" means any employee of an eligible
93	business who performs duties in connection with the operations
94	of the business on a regular, full-time basis for an average of
95	at least 36 hours per week for at least 3 months within the
96	designated urban job tax creditqualified high-crimearea in
97	which the eligible business is located. An owner or partner of
98	the eligible business is not a qualified employee. The term also
99	includes an employee leased from an employee leasing company
100	licensed under chapter 468, if such employee has been
101	continuously leased to the employer for an average of at least
102	36 hours per week for more than 6 months.
103	(c) "New business" means any eligible business first
104	beginning operation on a site in a designated urban job tax
105	creditqualified high-crimearea and clearly separate from any
106	other commercial or business operation of the business entity
107	within a designated urban job tax creditqualified high-crime
108	area. A business entity that operated an eligible business
109	within a designated urban job tax creditqualified high-crime
110	area within the 48 months before the period provided for
111	application by subsection (2) is not considered a new business.
112	(d) "Existing business" means any eligible business that
113	does not meet the criteria for a new business.
114	(e) "Designated urban job tax creditQualified high-crime
115	area" means an area selected by the Office of Tourism, Trade,
116	and Economic Development in the following manner: every third
117	year, the office shall rank and tierthose areas nominated under
118	subsection(7), according to the highest level of distress
119	experienced in the categories enumerated under subsection (7).
120	The Office of Tourism, Trade, and Economic Development shall
121	designate the 30 highest-distress-profile urban areas as
122	eligible participants under the urban job tax credit program
123	following prioritized criteria:
124	1. Highest arrest rates within the geographic area for
125	violent crime and for such other crimes as drug sale, drug
126	possession, prostitution, vandalism, and civil disturbances;
127	2. Highest reported crime volume and rate of specific
128	property crimes such as business and residential burglary, motor
129	vehicle theft, and vandalism;
130	3. Highest percentage of reported index crimes that are
131	violent in nature;
132	4. Highest overall index crime volume for the area; and
133	5. Highest overall index crime rate for the geographic
134	area.
135
136	Tier-one areas are ranked 1 through 5 and represent the highest
137	crime areas according to this ranking. Tier-two areas are ranked
138	6 through 10 according to this ranking. Tier-three areas are
139	ranked 11 through 15.Notwithstanding this definition,
140	"designated urban job tax creditqualified high-crimearea" also
141	means an area that has been designated as a federal Empowerment
142	Zone pursuant to the Taxpayer Relief Act of 1997 or the
143	Community Tax Relief Act of 2000. Such a designated area is
144	ranked in tier three until the areas are reevaluated by the
145	Office of Tourism, Trade, and Economic Development.
146	(f) "Central business district" means an area comprised of
147	at least 80 percent commercial and government buildings and
148	properties; characterized by a high concentration of retail
149	businesses, service businesses, offices, theaters, and hotels;
150	and located in a Department of Transportation Urban Service
151	Area.
152	(g) "Urban" means a densely populated nonrural area
153	located within an urban county which consists of a cluster of
154	one or more census blocks, each of which has a population
155	density of at least 400 people per square mile, or an area
156	defined by the most recent United States Census as urban.
157	(2) A new eligible business may apply for a tax credit
158	under this subsection once at any time during its first year of
159	operation. A new eligible business in a designated urban job tax
160	credittier-one qualified high-crimearea which has at least 10
161	qualified employees on the date of application shall receive a
162	$1,500 tax credit for each such employee. A new eligible
163	business in a tier-two qualified high-crime area which has at
164	least 20 qualified employees on the date of application shall
165	receive a $1,000 tax credit for each such employee. A new
166	eligible business in a tier-three qualified high-crime area
167	which has at least 30 qualified employees on the date of
168	application shall receive a $500 tax credit for each such
169	employee.
170	(3) An existing eligible business may apply for a tax
171	credit under this subsection at any time it is entitled to such
172	credit, except as restricted by this subsection. An existing
173	eligible business in a designated urban job tax credittier-one
174	qualified high-crimearea which on the date of application has
175	at least 105more qualified employees than it had 1 year prior
176	to its date of application shall receive a $1,500 tax credit for
177	each such additional employee. An existing eligible business in
178	a tier-two qualified high-crime area which on the date of
179	application has at least 10 more qualified employees than it had
180	1 year prior to its date of application shall receive a$1,000
181	credit for each such additional employee. An existing business
182	in a tier-three qualified high-crime area which on the date of
183	application has at least 15 more qualified employees than it had
184	1 year prior to its date of application shall receive a $500 tax
185	credit for each such additional employee.An existing eligible
186	business may apply for the credit under this subsection no more
187	than once in any 12-month period. Any existing eligible business
188	that received a credit under subsection (2) may not apply for
189	the credit under this subsection sooner than 12 months after the
190	application date for the credit under subsection (2).
191	(4) For any new eligible business receiving a credit
192	pursuant to subsection (2), an additional $500 credit shall be
193	provided for any qualified employee who is a welfare transition
194	program participant. For any existing eligible business
195	receiving a credit pursuant to subsection (3), an additional
196	$500 credit shall be provided for any qualified employee who is
197	a welfare transition program participant. Such employee must be
198	employed on the application date and have been employed less
199	than 1 year. This credit shall be in addition to other credits
200	pursuant to this section regardless of the tier-level of the
201	high-crime area. Appropriate documentation concerning the
202	eligibility of an employee for this credit must be submitted as
203	determined by the department.
204	(5) To be eligible for a tax credit under subsection (3),
205	the number of qualified employees employed 1 year prior to the
206	application date must be no lower than the number of qualified
207	employees on the application date on which a credit under this
208	section was based for any previous application, including an
209	application under subsection (2).
210	(6) Any county or municipality, or a county and one or
211	more municipalities together, may apply to the Office of
212	Tourism, Trade, and Economic Development for the designation of
213	an area as a designated urban job tax credithigh-crimearea
214	after the adoption by the governing body or bodies of a
215	resolution that:
216	(a) Finds that an urbana high-crimearea exists in such
217	county or municipality, or in both the county and one or more
218	municipalities, which chronically exhibits extreme and
219	unacceptable levels of poverty, unemployment, physical
220	deterioration, and economic disinvestment;
221	(b) Determines that the rehabilitation, conservation, or
222	redevelopment, or a combination thereof, of such an urbana
223	high-crimearea is necessary in the interest of the health,
224	safety, and welfare of the residents of such county or
225	municipality, or such county and one or more municipalities; and
226	(c) Determines that the revitalization of such an urbana
227	high-crimearea can occur if the public sector or private sector
228	can be induced to invest its own resources in productive
229	enterprises that build or rebuild the economic viability of the
230	area.
231	(7) The governing body of the entity nominating the area
232	shall demonstrateprovideto the Office of Tourism, Trade, and
233	Economic Development that the area meets thefollowing:
234	(a) Income characteristics:
235	1. Forty percent of area residents are earning wages on an
236	annual basis that are equal to or less than the annual wage of a
237	person who is earning minimum wage; or
238	2. More than 20 percent of residents or families live
239	below the federal standard of poverty for individuals or a
240	family of four.The overall index crime rate for the geographic
241	area;
242	(b) Education characteristics:
243	1. Has a high school dropout rate higher than the county
244	average; or
245	2. Has a high school graduation rate lower than the state
246	average.The overall index crime volume for the area;
247	(c) Workforce and employment characteristics:
248	1. Has an unemployment rate at least 3 percentage points
249	higher than the state's unemployment rate;
250	2. More than 50 percent of families subject to the
251	welfare-to-work transition time limit are either within 6 months
252	of the time limit or are receiving cash assistance under a
253	period of hardship extension to the time limit; or
254	3. Is identified as a labor surplus area using the
255	criteria established by the United States Department of Labor's
256	Employment and Training Administration.The percentage of
257	reported index crimes that are violent in nature;
258	(d) Crime characteristics:
259	1. Has an arrest rate higher than the state's average rate
260	for such crimes as drug sale, drug possession, prostitution,
261	vandalism, and civil disturbances, as recorded by total crime
262	index of the Department of Law Enforcement; or
263	2. Ranks in the top 30 percent of zip codes with reported
264	crimes that are violent in nature.The reported crime volume and
265	rate of specific property crimes such as business and
266	residential burglary, motor vehicle theft, and vandalism; and
267	(e) Residential and commercial property related
268	characteristics:
269	1. Fifty percent or more of area residents rent;
270	2.a. Property values are within the lower 50 percent of
271	the county's assessed property values;
272	b. More than 5 percent of area homes, apartments, or
273	buildings are abandoned, have been condemned within the previous
274	24 months, or have a greater number of violations of the Florida
275	Building Code than recorded in the remainder of the county or
276	municipality; or
277	c. Tax or special assessment delinquencies exceed the fair
278	value of the land.The arrest rates within the geographic area
279	for violent crime and for such other crimes as drug sale, drug
280	possession, prostitution, disorderly conduct, vandalism, and
281	other public-order offenses.
282	(8) A municipality, or a county and one or more
283	municipalities together, may not nominate more than one urban
284	high-crimearea. However, any county as defined by s. 125.011(1)
285	may nominate no more than three urbanhigh-crimeareas.
286	(9)(a)An area nominated by a county or municipality, or a
287	county and one or more municipalities together, for designation
288	as an urban job tax credita high-crimearea shall be eligible
289	only if it meets the following criteria:
290	1.(a) The selected area does not exceed 20 square miles
291	and eitherhas a continuous boundary or consists of not more
292	than three noncontiguous parcels.;
293	2.(b)The selected area does not exceed the following
294	mileage limitation:
295	a.1. For areascommunitieshaving a total population of
296	150,000 persons or more, the selected area does not exceed 20
297	square miles and is within 10 miles of the central business
298	district of a city.
299	b.2. For areascommunitieshaving a total population of
300	50,000 persons or more, but fewer than 150,000 persons, the
301	selected area does not exceed 10 square miles and is within 7.5
302	miles of the central business district of a city.
303	c.3. For areascommunitieshaving a total population of
304	20,000 persons or more, but fewer than 50,000 persons, the
305	selected area does not exceed 5 square miles and is within 5
306	miles of the central business district of a city.
307	d.4. For areascommunitieshaving a total population of
308	fewer than 20,000 persons, the selected area does not exceed 3
309	square miles and is within 3 miles of the central business
310	district of a city.
311	(b) A designated urban job tax credit area may not include
312	any portion of a central business district, unless the poverty
313	rate for each census geographic block group in the district is
314	not less than 30 percent.
315	(10)(a) In order to claim this credit, an eligible
316	business must file under oath with the Office of Tourism, Trade,
317	and Economic Development a statement that includes the name and
318	address of the eligible business and any other information that
319	is required to process the application.
320	(b) Within 30 working days after receipt of an application
321	for credit, the Office of Tourism, Trade, and Economic
322	Development shall review the application to determine whether it
323	contains all the information required by this subsection and
324	meets the criteria set out in this section. Subject to the
325	provisions of paragraph (c), the Office of Tourism, Trade, and
326	Economic Development shall approve all applications that contain
327	the information required by this subsection and meet the
328	criteria set out in this section as eligible to receive a
329	credit.
330	(c) The maximum credit amount that may be approved during
331	any calendar year is $5 million, of which $1 million shall be
332	exclusively reserved for tier-one areas. The Department of
333	Revenue, in conjunction with the Office of Tourism, Trade, and
334	Economic Development, shall notify the governing bodies in areas
335	designated under this sectionas urban high-crime areaswhen the
336	$5 million maximum amount has been reached. Applications must be
337	considered for approval in the order in which they are received
338	without regard to whether the credit is for a new or existing
339	business. This limitation applies to the value of the credit as
340	contained in approved applications. Approved credits may be
341	taken in the time and manner allowed pursuant to this section.
342	(11) If the application is insufficient to support the
343	credit authorized in this section, the Office of Tourism, Trade,
344	and Economic Development shall deny the credit and notify the
345	business of that fact. The business may reapply for this credit
346	within 3 months after such notification.
347	(12) If the credit under this section is greater than can
348	be taken on a single tax return, excess amounts may be taken as
349	credits on any tax return submitted within 12 months after the
350	approval of the application by the department.
351	(13) It is the responsibility of each business to
352	affirmatively demonstrate to the satisfaction of the Department
353	of Revenue that it meets the requirements of this section.
354	(14) Any person who fraudulently claims this credit is
355	liable for repayment of the credit plus a mandatory penalty of
356	100 percent of the credit and is guilty of a misdemeanor of the
357	second degree, punishable as provided in s. 775.082 or s.
358	775.083.
359	(15) A corporation may take the credit under this section
360	against its corporate income tax liability, as provided in s.
361	220.1895. However, a corporation that applies its job tax credit
362	against the tax imposed by chapter 220 may not receive the
363	credit provided for in this section. A credit may be taken
364	against only one tax.
365	(16) An eligible business may transfer any unused credit
366	in whole or in units of no less than 25 percent of the remaining
367	credit. The entity acquiring such credit may use it in the same
368	manner and with the same limitation as described in this
369	section. Such transferred credits may not be transferred again
370	although they may succeed to a surviving or acquiring entity
371	subject to the same conditions and limitations described in this
372	section.
373	(17)(16)The department shall adopt rules governing the
374	manner and form of applications for credit or transfers of
375	creditand may establish guidelines concerning the requisites
376	for an affirmative showing of qualification for the credit under
377	this section.
378	Section 2. Section 220.1895, Florida Statutes, is amended
379	to read:
380	220.1895 Rural Job Tax Credit and Designated Urban High-
381	Crime Area Job Tax Credit Area.--There shall be allowed a credit
382	against the tax imposed by this chapter amounts approved by the
383	Office of Tourism, Trade, and Economic Development pursuant to
384	the Rural Job Tax Credit Program in s. 212.098 and the
385	Designated Urban High-Crime Area Job Tax Credit AreaProgram in
386	s. 212.097. A corporation that uses its credit against the tax
387	imposed by this chapter may not take the credit against the tax
388	imposed by chapter 212. If any credit granted under this section
389	is not fully used in the first year for which it becomes
390	available, the unused amount may be carried forward for a period
391	not to exceed 5 years. The carryover may be used in a subsequent
392	year when the tax imposed by this chapter for such year exceeds
393	the credit for such year under this section after applying the
394	other credits and unused credit carryovers in the order provided
395	in s. 220.02(8). The Office of Tourism, Trade, and Economic
396	Development shall conduct a review of the Urban High-Crime Area
397	Job Tax Credit and the Rural Job Tax Credit Program and submit
398	its report to the Governor, the President of the Senate, and the
399	Speaker of the House of Representatives by February 1, 2000.
400	Section 3. Paragraph (e) of subsection (1) and paragraph
401	(b) of subsection (4) of section 288.1045, Florida Statutes, are
402	amended to read:
403	288.1045 Qualified defense contractor tax refund
404	program.--
405	(1) DEFINITIONS.--As used in this section:
406	(e) "Department of Defense contract" means a competitively
407	bid Department of Defense contract or subcontract or a
408	competitively bid federal agency contract or subcontract issued
409	on behalf of the Department of Defense for manufacturing,
410	assembling, fabricating, research, development, or design with a
411	duration of 2 or more years, but excluding any contract or
412	subcontract to provide goods, improvements to real or tangible
413	property, or services directly to or for any particular military
414	base or installation in this state. The term includes contracts
415	or subcontracts for products or services for military or
416	homeland securityuse which contracts or subcontracts are
417	approved by the United States Department of Defense, the United
418	States Department of State, or the United States Department of
419	Homeland SecurityCoast Guard.
420	(4) QUALIFIED DEFENSE CONTRACTOR TAX REFUND AGREEMENT.--
421	(b) Compliance with the terms and conditions of the
422	agreement is a condition precedent for receipt of tax refunds
423	each year. The failure to comply with the terms and conditions
424	of the agreement shall result in the loss of eligibility for
425	receipt of all tax refunds previously authorized pursuant to
426	this section, and the revocation of the certification as a
427	qualified applicant by the director, unless the qualified
428	applicant is eligible to receive and elects to accept a prorated
429	refund under paragraph (5)(g) or the office grants the qualified
430	applicant an economic-stimulus exemption.
431	1. A qualified applicant may submit, in writing, a request
432	to the office for an economic-stimulus exemption. The request
433	must provide quantitative evidence demonstrating how negative
434	economic conditions in the qualified applicant's industry, or
435	specific acts of terrorism affecting the qualified applicant,
436	have prevented the qualified applicant from complying with the
437	terms and conditions of its tax refund agreement.
438	2. Upon receipt of a request under subparagraph 1., the
439	director shall have 45 days to notify the requesting qualified
440	applicant, in writing, if its exemption has been granted or
441	denied. In determining if an exemption should be granted, the
442	director shall consider the extent to which negative economic
443	conditions in the requesting qualified applicant's industry, or
444	specific acts of terrorism affecting the qualified applicant,
445	have prevented the qualified applicant from complying with the
446	terms and conditions of its tax refund agreement.
447	3. As a condition for receiving a prorated refund under
448	paragraph (5)(g) or an economic-stimulus exemption under this
449	paragraph, a qualified applicant must agree to renegotiate its
450	tax refund agreement with the office to, at a minimum, ensure
451	that the terms of the agreement comply with current law and
452	office procedures governing application for and award of tax
453	refunds. Upon approving the award of a prorated refund or
454	granting an economic-stimulus exemption, the office shall
455	renegotiate the tax refund agreement with the qualified
456	applicant as required by this subparagraph. When amending the
457	agreement of a qualified applicant receiving an economic-
458	stimulus exemption, the office may extend the duration of the
459	agreement for a period not to exceed 1 year.
460	4. A qualified applicant may submit a request for an
461	economic-stimulus exemption to the office in lieu of any tax
462	refund claim scheduled to be submitted after January 1, 2001,
463	but before June 30, 2004July 1, 2003. However, a qualified
464	applicant that has received at least one economic-stimulus
465	exemption may not apply for an additional exemption.
466	5. A qualified applicant that receives an economic-
467	stimulus exemption may not receive a tax refund for the period
468	covered by the exemption.
469	Section 4. Paragraph (o) of subsection (1) and paragraph
470	(b) of subsection (4) of section 288.106, Florida Statutes, are
471	amended to read:
472	288.106 Tax refund program for qualified target industry
473	businesses.--
474	(1) DEFINITIONS.--As used in this section:
475	(o) "Target industry business" means a corporate
476	headquarters business or any business that is engaged in one of
477	the target industries identified pursuant to the following
478	criteria developed by the office in consultation with Enterprise
479	Florida, Inc.:
480	1. Future growth.--Industry forecasts should indicate
481	strong expectation for future growth in both employment and
482	output, according to the most recent available data. Special
483	consideration should be given to Florida's growing access to
484	international markets or to replacing imports.
485	2. Stability.--The industry should not be subject to
486	periodic layoffs, whether due to seasonality or sensitivity to
487	volatile economic variables such as weather. The industry
488	should also be relatively resistant to recession, so that the
489	demand for products of this industry is not necessarily subject
490	to decline during an economic downturn.
491	3. High wage.--The industry should pay relatively high
492	wages compared to statewide or area averages.
493	4. Market and resource independent.--The location of
494	industry businesses should not be dependent on Florida markets
495	or resources as indicated by industry analysis.
496	5. Industrial base diversification and strengthening.--The
497	industry should contribute toward expanding or diversifying the
498	state's or area's economic base, as indicated by analysis of
499	employment and output shares compared to national and regional
500	trends. Special consideration should be given to industries
501	that strengthen regional economies by adding value to basic
502	products or building regional industrial clusters as indicated
503	by industry analysis. Special consideration also should be given
504	to developing strong industrial clusters, including defense and
505	homeland security.
506	6. Economic benefits.--The industry should have strong
507	positive impacts on or benefits to the state and regional
508	economies.
509
510	The office, in consultation with Enterprise Florida, Inc., shall
511	develop a list of such target industries annually and submit
512	such list as part of the final agency legislative budget request
513	submitted pursuant to s. 216.023(1). A target industry business
514	may not include any industry engaged in retail activities; any
515	electrical utility company; any phosphate or other solid
516	minerals severance, mining, or processing operation; any oil or
517	gas exploration or production operation; or any firm subject to
518	regulation by the Division of Hotels and Restaurants of the
519	Department of Business and Professional Regulation.
520	(4) TAX REFUND AGREEMENT.--
521	(b) Compliance with the terms and conditions of the
522	agreement is a condition precedent for the receipt of a tax
523	refund each year. The failure to comply with the terms and
524	conditions of the tax refund agreement results in the loss of
525	eligibility for receipt of all tax refunds previously authorized
526	under this section and the revocation by the director of the
527	certification of the business entity as a qualified target
528	industry business, unless the business is eligible to receive
529	and elects to accept a prorated refund under paragraph (5)(d) or
530	the office grants the business an economic-stimulus exemption.
531	1. A qualified target industry business may submit, in
532	writing, a request to the office for an economic-stimulus
533	exemption. The request must provide quantitative evidence
534	demonstrating how negative economic conditions in the business's
535	industry, or specific acts of terrorism affecting the qualified
536	target industry business, have prevented the business from
537	complying with the terms and conditions of its tax refund
538	agreement.
539	2. Upon receipt of a request under subparagraph 1., the
540	director shall have 45 days to notify the requesting business,
541	in writing, if its exemption has been granted or denied. In
542	determining if an exemption should be granted, the director
543	shall consider the extent to which negative economic conditions
544	in the requesting business's industry, or specific acts of
545	terrorism affecting the qualified target industry business, have
546	prevented the business from complying with the terms and
547	conditions of its tax refund agreement.
548	3. As a condition for receiving a prorated refund under
549	paragraph (5)(d) or an economic-stimulus exemption under this
550	paragraph, a qualified target industry business must agree to
551	renegotiate its tax refund agreement with the office to, at a
552	minimum, ensure that the terms of the agreement comply with
553	current law and office procedures governing application for and
554	award of tax refunds. Upon approving the award of a prorated
555	refund or granting an economic-stimulus exemption, the office
556	shall renegotiate the tax refund agreement with the business as
557	required by this subparagraph. When amending the agreement of a
558	business receiving an economic-stimulus exemption, the office
559	may extend the duration of the agreement for a period not to
560	exceed 1 year.
561	4. A qualified target industry business may submit a
562	request for an economic-stimulus exemption to the office in lieu
563	of any tax refund claim scheduled to be submitted after January
564	1, 2001, but before June 30, 2004July 1, 2003. However, a
565	qualified target industry business that has received at least
566	one economic-stimulus exemption may not apply for an additional
567	exemption.
568	5. A qualified target industry business that receives an
569	economic-stimulus exemption may not receive a tax refund for the
570	period covered by the exemption.
571	Section 5. Notwithstanding section 14 of chapter 93-187,
572	Laws of Florida, section 288.9515, Florida Statutes, shall not
573	stand repealed on December 31, 2003, as scheduled by such law,
574	but that section is reenacted and amended to read:
575	288.9515 Authorized technology development programs.--
576	(1) Enterprise Florida, Inc., may create technology
577	development andapplications services, and may serve as an
578	umbrella organization for the coordination of information that
579	providestechnology applications service providers throughout
580	the state which providecritical, managerial, technological,
581	scientific, and related financial and business expertise
582	essential for international and domestic competitiveness to
583	small-sized and medium-sized manufacturing and knowledge-based
584	service firms. Enterprise Florida, Inc., is authorized the
585	following powers in order to carry out these functions:
586	(a) Providing communication and coordination services
587	among technology development andapplications service providers
588	throughout the state.
589	(b) Providing coordinated marketing services to small-
590	sized and medium-sized manufacturers in the state on behalf of,
591	and in partnership with, technology applications service
592	providers.
593	(b)(c)Securing additional sources of funds on behalf of,
594	and in partnership with, technology-based businesses
595	applications service providers.
596	(c)(d)Developing plans and policies to assist small-sized
597	and medium-sized manufacturing companies or other knowledge-
598	based firms in Florida.
599	(e) Entering into contracts with technology applications
600	service providers for expanded availability of high-quality
601	assistance to small-sized and medium-sized manufacturing
602	companies or knowledge-based service firms, including, but not
603	limited to, technological, human resources development, market
604	planning, finance, and interfirm collaboration. Enterprise
605	Florida, Inc., shall ensure that all contracts in excess of
606	$20,000 for the delivery of such assistance to Florida firms
607	shall be based on competitive requests for proposals and shall
608	establish clear standards for the delivery of services under
609	such contracts. Such standards include, but are not limited to:
610	1. The ability and capacity to deliver services in
611	sufficient quality and quantity.
612	2. The ability and capacity to deliver services in a
613	timely manner.
614	3. The ability and capacity to meet the needs of firms in
615	the proposed market area.
616	(d)(f)Assisting other educational institutions,
617	enterprises, or the entities providing business assistance to
618	small-sized and medium-sized manufacturing and knowledge-based
619	servicesenterprises.
620	(g) Establishing a system to evaluate the effectiveness
621	and efficiency of technology applications services provided to
622	small-sized and medium-sized enterprises.
623	(e)(h) Establishing special education andinformational
624	programs for Florida enterprises and for educational
625	institutions and enterprises providing business assistance to
626	Florida enterprises.
627	(f)(i)Assisting inevaluating and documenting the needs
628	of firms in this state for technology development and
629	application services, and developing means to ensure that these
630	needs are met, consistent with the powers provided for in this
631	subsection.
632	(g)(j)Maintaining an office in such place or places as
633	the board of directors of Enterprise Florida, Inc., approves.
634	(h)(k)Making and executing contracts with any person,
635	enterprise, educational institution, association, or any other
636	entity necessary or convenient for the performance of its duties
637	and the exercise of the powers and functions of Enterprise
638	Florida, Inc., under this subsection.
639	(i)(l)Receiving funds from any source to carry out the
640	purposes of providing technology development andapplications
641	services, including, but not limited to, gifts or grants from
642	any department, agency, or instrumentality of the United States
643	or of the state, or any enterprise or person, for any purpose
644	consistent with the provisions of this subsection.
645	(2) When choosing contractors under this section,
646	preference shall be given to existing institutions,
647	organizations, and enterprises so long as these existing
648	institutions, organizations, and enterprises demonstrate the
649	ability to perform at standards established by Enterprise
650	Florida, Inc., under paragraph (1)(e).Neither the provisions of
651	ss. 288.9511-288.9517 nor the actions taken by Enterprise
652	Florida, Inc., under this section shall impair or hinder the
653	operations, performance, or resources of any existing
654	institution, organization, or enterprise.
655	(3) Enterprise Florida, Inc., may create a technology
656	development financing fund, to be called the Florida Technology
657	Research Investment Fund. The fund shall increase technology
658	development in this state by investing in technology development
659	projects that have the potential to generate investment-grade
660	technologies of importance to the state's economy as evidenced
661	by the willingness of private businesses to coinvest in such
662	projects. Enterprise Florida, Inc., may also demonstrate and
663	develop effective approaches to, and benefits of, commercially
664	oriented research collaborations between businesses,
665	universities, and state and federal agencies and organizations.
666	Enterprise Florida, Inc., shall endeavor to maintain the fund as
667	a self-supporting fund once the fund is sufficiently capitalized
668	under Enterprise Florida, Inc., program guidelinesas reflected
669	in the minimum funding report required in s. 288.9516. The
670	technology research investment projects may include, but are not
671	limited to:
672	(a) Technology development projects expected to lead to a
673	specific investment-grade technology that is of importance to
674	industry in this state.
675	(b) Technology development centers and facilities expected
676	to generate a stream of products and processes with commercial
677	application of importance to industry in this state.
678	(c) Technology development projects that have, or are
679	currently using, other federal or state funds such as federal
680	Small Business Innovation Research awards.
681	(4) Enterprise Florida, Inc., shall invest moneys
682	contained in the Florida Technology Research Investment Fund in
683	technology application research or for technology development
684	projects that have the potential for commercial market
685	application. The partnership shall coordinate any investment in
686	any space-related technology projects with the Florida Space
687	Authority and the Technological Research and Development
688	Authority.
689	(a) The investment of moneys contained in the Florida
690	Technology Research Investment Fund is limited to qualified
691	investments in qualified securitiesin which a private
692	enterprise in this state coinvests at least 40 percent of the
693	total project costs, in conjunction with other cash or noncash
694	investments from state educational institutions, state and
695	federal agencies, or other institutions.
696	(b) All moneys in the Florida Technology Research
697	Investment Fund shall be continuously appropriated to the fund
698	and may be used for loan guarantees, letter of credit
699	guarantees, cash reserves for loan and letter of credit
700	guarantees, payments of claims pursuant to contracts for
701	guarantees, subordinated loans, loans with warrants, royalty
702	investments, equity investments, andFor the purposes of this
703	fund, qualified securities include loans, loans convertible to
704	equity, equity, loans with warrants attached that are
705	beneficially owned by the board, royalty agreements, orany
706	other contractual arrangements through which the Florida
707	Technology Research Investment Fund receives an interest,
708	rights, return of funds, or other consideration, and may be used
709	for operations of the fund. All such uses of moneys in the fund
710	are qualified investmentsarrangement in which the board is
711	providing scientific and technological services to any federal,
712	state, county, or municipal agency, or to any individual,
713	corporation, enterprise, association, or any other entity
714	involving technology development. Any claim against the fund or
715	Enterprise Florida, Inc., relating to investment of moneys in
716	the fund shall be paid solely from the fund. Neither the credit
717	nor the taxing power of the state shall be pledged to secure the
718	fund or moneys in the fund, other than from moneys appropriated
719	or assigned to the fund, and the state shall not be liable or
720	obligated in any way for any claims against the fund or against
721	Enterprise Florida, Inc.
722	(c) Not more than $175,000 or 5 percent of the revenues
723	generated by investment of moneys contained in the Florida
724	Technology Research Investment Fund plus 5 percent of the
725	revenues generated by investments under the Florida Small
726	Business Technology Growth Program under s. 288.95155, whichever
727	is greater, may be used on an annual basis to pay the combined
728	operating expenses associated with operation of the Florida
729	Technology Research Investment Fund and the Florida Small
730	Business Technology Growth Program.
731	(d) In the event of liquidation or dissolution of
732	Enterprise Florida, Inc., or the Florida Technology Research
733	Investment Fund, any rights or interests in a qualified security
734	or portion of a qualified security purchased with moneys
735	invested by the State of Florida shall vest in the state, under
736	the control of the State Board of Administration. The state is
737	entitled to, in proportion to the amount of investment in the
738	fund by the state, any balance of funds remaining in the Florida
739	Technology Research Investment Fund after payment of all debts
740	and obligations upon liquidation or dissolution of Enterprise
741	Florida, Inc., or the fund.
742	(e) The investment of funds contained in the Florida
743	Technology Research Investment Fund does not constitute a debt,
744	liability, or obligation of the State of Florida or of any
745	political subdivision thereof, or a pledge of the faith and
746	credit of the state or of any such political subdivision.
747	(5) Enterprise Florida, Inc., may create technology
748	commercialization programs in partnership with private
749	enterprises, educational institutions, and other institutions to
750	increase the rate at which technologies with potential
751	commercial application are moved from university, public, and
752	industry laboratories into the marketplace. Such programs shall
753	be created based upon research to be conducted by Enterprise
754	Florida, Inc.
755	(6) Enterprise Florida, Inc., shall coordinate with local
756	and regional economic development organizations to facilitate a
757	statewide entrepreneurship strategy to stimulate the growth of
758	start-up businesses and technology innovations in this state.
759	This strategy should include, but need not be limited to,
760	technology transfer coordination, university linkages,
761	entrepreneurial networks and training, and start-up capital
762	access, including the formation and growth of individual and
763	business networks that may be willing to invest in start-up
764	businesses in this state.
765	Section 6. Section 288.9517, Florida Statutes, is
766	repealed.
767	Section 7. Section 14 of chapter 93-187, Laws of Florida,
768	is repealed.
769	Section 8. This act shall take effect July 1, 2003.