HB 0003E 2003
   
1 A bill to be entitled
2          An act relating to the Economic Investment Mega Fund
3    Incentive; creating s. 288.1089, F.S.; providing
4    legislative findings; creating the Economic Investment
5    Mega Fund Incentive within the Office of Tourism, Trade,
6    and Economic Development for certain purposes; providing
7    definitions; providing an incentive award limitation;
8    providing for award application and eligibility; providing
9    business qualification requirements; providing proposal
10    evaluation and recommendations requirements for Enterprise
11    Florida, Inc.; providing for negotiation of award amounts
12    by the office; providing for agreements for payments of
13    certain moneys under certain circumstances; providing
14    criteria for project approval or disapproval; providing
15    for incentive payment agreements; requiring Enterprise
16    Florida, Inc., to assist the office in validating certain
17    business performances; requiring a report; authorizing the
18    office to allocate certain funds for certain purposes;
19    amending s. 288.1088, F.S.; requiring the Executive Office
20    of the Governor to recommend approval of certain projects
21    and release of certain funds under certain circumstances;
22    requiring performance conditions for funds release;
23    providing an effective date.
24         
25          Be It Enacted by the Legislature of the State of Florida:
26         
27          Section 1. Section 288.1089, Florida Statutes, is created
28    to read:
29          288.1089 Economic Investment Mega Fund Incentive.--
30          (1) LEGISLATIVE FINDINGS; CREATION OF ECONOMIC INVESTMENT
31    MEGA FUND INCENTIVE.--
32          (a) The Legislature finds that attracting, retaining, and
33    providing favorable conditions for the growth of certain high-
34    impact business facilities in this state provides widespread
35    economic benefits to the public through high-quality employment
36    opportunities in such facilities and in related facilities
37    attracted to this state or region through an enhanced
38    entrepreneurial climate in the state or region, and the
39    resulting business and employment opportunities, and through the
40    stimulation and enhancement of the state's universities and
41    community colleges. Serious regional, national, and
42    international competition exists for these facilities and in
43    most instances, when all available resources for economic
44    development have been used, the state continues to encounter
45    severe competitive disadvantages in vying for these business
46    facilities.
47          (b) The Legislature therefore hereby creates the Economic
48    Investment Mega Fund Incentive within the Office of Tourism,
49    Trade, and Economic Development to ensure that sufficient
50    resources shall be available to respond to extraordinary
51    economic opportunities and to compete effectively for these
52    high-impact business facilities.
53          (2) DEFINITIONS.--As used in this section:
54          (a) “Competitive gap” means the difference between the
55    cost of locating the project in this state versus identified
56    locations under consideration in other states or countries when
57    the total cost of start up and operations, incentive offers, and
58    other relevant factors are considered in this state versus those
59    alternate locations.
60          (b) "Cumulative investment" means the total private
61    investment in buildings and equipment made by a qualified
62    business since the beginning of construction of such facility.
63          (c) "Director" means the director of the Office of
64    Tourism, Trade, and Economic Development.
65          (d) "Eligible business" means a business meeting the
66    requirements of subsection (5).
67          (e) "Fiscal year" means the state fiscal year.
68          (f) "Jobs" means full-time equivalent positions, as that
69    term is consistent with terms used by the Agency for Workforce
70    Innovation and the United States Department of Labor for
71    purposes of unemployment compensation tax administration and
72    employment estimation, resulting directly from a project in this
73    state. The term does not include temporary construction jobs
74    involved in the construction of a project facility.
75          (g) "Office" means the Office of Tourism, Trade, and
76    Economic Development.
77          (h) "Qualified business" means an eligible business that
78    has been approved to receive an economic investment mega fund
79    incentive award.
80          (i) "Research and development" means basic and applied
81    research in science or engineering, as well as the design,
82    development, and testing of prototypes or processes of new or
83    improved products. Research and development does not mean market
84    research, routine consumer product testing, sales research,
85    research in the social sciences or psychology, nontechnological
86    activities ,or technical services.
87          (3) ECONOMIC INVESTMENT MEGA FUND INCENTIVE AWARDS;
88    LIMITATION.--The total amount of active economic investment mega
89    fund incentive awards scheduled for payment by the office may
90    not exceed the amount appropriated for economic investment mega
91    fund incentives.
92          (4) AWARD APPLICATION; ELIGIBILITY.--To be eligible for
93    consideration for an economic investment mega fund incentive
94    award, a business must submit a written application to
95    Enterprise Florida, Inc. before the business has made the
96    decision to locate a new business in this state or before the
97    business has made the decision to expand an existing business in
98    this state. The application shall include, but is not limited
99    to:
100          (a) The applicant's federal employer identification
101    number, unemployment account number, and state sales tax
102    registration number. If these numbers are not available at the
103    time of application, they must be submitted to the office in
104    writing prior to the disbursement of any payments under this
105    section.
106          (b) The location in this state at which the project is
107    located or is to be located.
108          (c) A description of the type of business activity,
109    product, or research and development undertaken by the project,
110    including four-digit NAICS codes for all activities included in
111    the project.
112          (d) The business’s projected investment in the project.
113          (e) The total investment, from all sources, in the
114    project.
115          (f) The number of net new full-time equivalent jobs in
116    this state the business anticipates having created as of
117    December 31 of each year in the project and the average wage of
118    those jobs.
119          (g) The total number of full-time equivalent employees
120    currently employed by the business applicant in this state.
121          (h) The anticipated commencement date of the project.
122          (i) A detailed explanation of why the economic investment
123    mega fund incentive is needed to induce the business to expand
124    or locate in the state and how the incentive will close, or help
125    to close, the competitive gap impeding the business’ decision to
126    locate or expand in this state.
127          (j) An estimate of the proportion of the sales resulting
128    from the project that will be made outside this state.
129          (5) REVIEW QUALIFICATIONS.--To qualify for review by the
130    office, the business must, at a minimum, establish the following
131    to the satisfaction of Enterprise Florida, Inc., and the office:
132          (a) The jobs proposed to be created under the application
133    must pay an estimated annual average wage equaling at least 125
134    percent of the average private sector wage in the area where the
135    business is to be located or the statewide private sector
136    average wage. The office may waive this average wage requirement
137    at the request of Enterprise Florida, Inc. The wage requirement
138    may only be waived for a project located in a brownfield area
139    designated under s. 376.80, in a rural city or county as defined
140    in s. 288.106, or in an enterprise zone and only when the merits
141    of the individual project or the specific circumstances in the
142    community in relationship to the project warrant such action. If
143    Enterprise Florida, Inc., makes such a recommendation, the
144    recommendation must be transmitted in writing and the specific
145    justification for the waiver recommendation must be explained.
146    If the director elects to waive the wage requirement, the waiver
147    must be stated in writing and the reasons for granting the
148    waiver must be explained.
149          (b)1.a. The project must result in the creation of at
150    least 200 jobs at the business; or
151          b. If the project is a research and development facility,
152    a national or international headquarters, or is located in a
153    brownfield area designated under s. 376.80, in a rural city or
154    county as defined in s. 288.106, or in an enterprise zone, the
155    project must result in the creation of at least 100 jobs.
156          2. If the project is an expansion of an existing business,
157    the project must result in a net increase in employment of not
158    less than 10 percent. If the expansion is located in a
159    brownfield area designated under s. 376.80, a rural county or
160    city as defined in s. 288.106, or an enterprise zone, the 10
161    percent job creation requirement may be waived by the office at
162    the request of Enterprise Florida, Inc. If Enterprise Florida,
163    Inc. makes such a request, the request must be transmitted in
164    writing and the specific justification for the request must be
165    explained. If the director elects to grant such request, such
166    election must be stated in writing and the reason for granting
167    the request must be explained.
168          (c) The business activity or product for the applicant's
169    project is within an industry or industries that have been
170    designated as a target industry business under s. 288.106 or a
171    designated sector under s. 288.108.
172          (d)1. The cumulative investment in the project is at least
173    $25 million within a 3-year period; or
174          2. If the project is a research and development facility
175    or a national or international headquarters or is located in a
176    brownfield area designated under s. 376.80, in a rural county or
177    city as defined in s. 288.106, or in an enterprise zone, the
178    cumulative investment in the project must exceed $10 million
179    within a 3-year period.
180          (6) PROPOSAL EVALUATION AND RECOMMENDATIONS.--Enterprise
181    Florida, Inc., shall evaluate individual proposals for economic
182    investment mega fund incentive projects and forward
183    recommendations regarding the use of moneys in the fund for such
184    projects to the director. Such evaluation and recommendation
185    must include, but need not be limited to:
186          (a) A description of the type of facility, its operations,
187    and the associated product, service, or research and development
188    associated with the project.
189          (b) The number of full-time equivalent jobs that will be
190    created by the project, the total estimated average annual wages
191    of those jobs, and the types of business activities and jobs
192    stimulated by the investment.
193          (c) The cumulative investment to be dedicated to the
194    project within 3 years and the total investment expected in the
195    project if more than 3 years.
196          (d) A statement of any special impacts the project is
197    expected to stimulate in a particular business sector in the
198    state or regional economy or in the state's universities and
199    community colleges.
200          (e) A statement of the role the incentive is expected to
201    play in the decision of the applicant business to locate or
202    expand in this state.
203          (f) A recommendation of the amount of the economic
204    investment mega fund incentive that is needed to close a
205    competitive gap, including an explanation of why an incentive of
206    that amount is needed to induce the business to expand or locate
207    in this state.
208          (g) A discussion of the efforts and commitments made by
209    the local community in which the project is to be located to
210    induce the project location or expansion in light of local
211    resources and abilities.
212          (h) A recommendation for specific performance criteria the
213    business would be expected to achieve to receive any payments
214    from the fund and penalties or sanctions for failure to meet or
215    maintain performance conditions.
216          (7) AWARD NEGOTIATION; CONSIDERATIONS.--The office may, in
217    consultation with Enterprise Florida, Inc., negotiate the
218    proposed amount of an award for any eligible business. In
219    negotiating such award, the office shall consider the amount of
220    the incentive needed to close the competitive gap in conjunction
221    with other relevant applicant impact and cost information and
222    analysis as required in this section. Particular emphasis shall
223    be given to the potential for the project to stimulate
224    additional private investment and high-quality employment
225    opportunities in the area. No more than $150 million may be
226    awarded for any qualified business. To be considered for an
227    award over $100 million, an application must include the
228    creation of a minimum of 1000 jobs and a $750 million cumulative
229    investment within a 3-year period.
230          (8) AWARD APPROVAL OR DISAPPROVAL.--Upon receipt of the
231    evaluation and recommendation from Enterprise Florida, Inc., the
232    director shall recommend to the Governor approval or disapproval
233    of a project. In recommending approval of a project, the
234    director shall include proposed performance conditions that the
235    project must meet to obtain incentive funds and any other
236    conditions that must be met prior to the receipt of any
237    incentive funds. The Governor shall obtain written approval of
238    the President of the Senate and the Speaker of the House of
239    Representatives before giving approval for a project. The
240    Executive Office of the Governor shall recommend approval of a
241    project and release the funds upon approval of a budget
242    amendment by the Legislative Budget Commission.
243          (9) AWARD AGREEMENT.--Upon approval by the Executive
244    Office of the Governor, the director of the office shall issue a
245    letter certifying the business as a qualified business. The
246    office and the business shall enter into an agreement that sets
247    forth the conditions for payment of incentives. The agreement
248    must include the total amount of funds awarded; the performance
249    conditions that must be met to obtain the award or portions of
250    the award, including, but not limited to, net new employment in
251    the state, average salary, and total investment; demonstration
252    of a baseline of current service and a measure of enhanced
253    capability; the methodology for validating performance; the
254    schedule of payments; and sanctions for failure to meet
255    performance conditions.
256          (10) PERFORMANCE VALIDATION; REPORT.--Enterprise Florida,
257    Inc., shall assist the office in validating the qualified
258    business’s performance. At the conclusion of the economic
259    investment mega fund incentive award agreement, or its earlier
260    termination, Enterprise Florida, Inc. shall, within 90 days,
261    report the results of the economic investment mega fund
262    incentive award to the Governor, the President of the Senate,
263    and the Speaker of the House of Representatives.
264          (11) ADDITIONAL USES OF ECONOMIC INVESTMENT MEGA FUND
265    INCENTIVE ALLOCATIONS.--The office may allocate funds
266    appropriated for economic investment mega fund incentive awards
267    to fund economic development programs and activities pursuant to
268    s. 288.065, relating to the Rural Community Development
269    Revolving Loan Fund; s. 288.0655, relating to the Rural
270    Infrastructure Fund; s. 288.1088, relating to the Quick Action
271    Closing Fund; s. 288.1254, relating to the entertainment
272    industry financial incentive program; and s. 288.980, relating
273    to the military base retention grants program. These allocations
274    shall be approved in the same manner as provided in subsection
275    (8) and such approval of the Quick Action Closing Fund shall
276    satisfy the requirements of s. 288.1088(3)(b).
277          Section 2. Paragraph (b) of subsection (3) of section
278    288.1088, Florida Statutes, is amended to read:
279          288.1088 Quick Action Closing Fund.--
280          (3)
281          (b) Upon receipt of the evaluation and recommendation from
282    Enterprise Florida, Inc., the director shall recommend approval
283    or disapproval of a project for receipt of funds from the Quick
284    Action Closing Fund to the Governor. In recommending a project,
285    the director shall include proposed performance conditions that
286    the project must meet to obtain incentive funds. The Governor
287    shall consult with the President of the Senate and the Speaker
288    of the House of Representatives before giving final approval for
289    a project. The Executive Office of the Governor shall recommend
290    approval of a project and release of funds pursuant to the
291    legislative consultation and review requirements set forth in s.
292    216.177. The recommendation must include proposed performance
293    conditions the project must meet to obtain funds.
294          Section 3. This act shall take effect upon becoming a law.