Amendment

Bill No. 1494

Amendment No. 768817

CHAMBER ACTION
Senate		House
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1	Representative Kyle offered the following:
2
3	Amendment (with title amendment)
4	Remove everything after the enacting clause and insert:
5	Section 1.  Paragraphs (b) and (c) of subsection (3) of
6	section 288.095, Florida Statutes, are amended to read:
7	288.095  Economic Development Trust Fund.--
8	(3)
9	(b)  The total amount of tax refund claims approved for
10	payment by the Office of Tourism, Trade, and Economic
11	Development based on actual project performance may not exceed
12	the amount appropriated to the Economic Development Incentives
13	Account for such purposes for the fiscal year. Claims for tax
14	refunds under ss. 288.1045 and 288.106 shall be paid in the
15	order the claims are approved by the Office of Tourism, Trade,
16	and Economic Development. In the event the Legislature does not
17	appropriate an amount sufficient to satisfy the estimates by the
18	office for tax refunds under ss. 288.1045 and 288.106 in a
19	fiscal year, the unsatisfied tax refunds shall have first claim
20	to any appropriations made for the following fiscal year. By
21	March 1 of each year, the Office of Tourism, Trade, and Economic
22	Development shall notify the legislative appropriations
23	committees of any anticipated shortfall in the amount of funds
24	needed to satisfy claims for tax refunds from the appropriation
25	for the current fiscal year Office of Tourism, Trade, and
26	Economic Development shall, not later than July 15 of such year,
27	determine the proportion of each refund claim which shall be
28	paid by dividing the amount appropriated for tax refunds for the
29	fiscal year by the estimated total of refund claims for the
30	fiscal year. The amount of each claim for a tax refund shall be
31	multiplied by the resulting quotient. If, after the payment of
32	all such refund claims, funds remain in the Economic Development
33	Incentives Account for tax refunds, the office shall recalculate
34	the proportion for each refund claim and adjust the amount of
35	each claim accordingly.
36	(c)  By December 31 of each year, Enterprise Florida, Inc.,
37	shall submit a complete and detailed report to the Governor, the
38	President of the Senate, the Speaker of the House of
39	Representatives, and the director of the Office of Tourism,
40	Trade, and Economic Development of all applications received,
41	recommendations made to the Office of Tourism, Trade, and
42	Economic Development, final decisions issued, tax refund
43	agreements executed, and tax refunds paid or other payments made
44	under all programs funded out of the Economic Development
45	Incentives Account, including analyses of benefits and costs,
46	types of projects supported, and employment and investment
47	created. Enterprise Florida, Inc., shall also include a separate
48	analysis of the impact of such tax refunds on state enterprise
49	zones designated pursuant to s. 290.0065, rural communities,
50	brownfield areas, and distressed urban communities. The report
51	must discuss whether the authority and moneys appropriated by
52	the Legislature to the Economic Development Incentives Account
53	were managed and expended in a prudent, fiducially sound manner.
54	The report shall also discuss the efforts made by the Office of
55	Tourism, Trade, and Economic Development to amend tax refund
56	agreements to require tax refund claims to be submitted by
57	January 31 for the net new full-time equivalent Florida jobs as
58	of December 31 of the preceding calendar year. The Office of
59	Tourism, Trade, and Economic Development shall assist Enterprise
60	Florida, Inc., in the collection of data related to business
61	performance and incentive payments.
62	Section 2.  Paragraph (g) of subsection (1), paragraphs
63	(b), (c), and (d) of subsection (3), and subsection (7) of
64	section 288.1045, Florida Statutes, are amended to read:
65	288.1045  Qualified defense contractor tax refund
66	program.--
67	(1)  DEFINITIONS.--As used in this section:
68	(g)  "Jobs" means full-time equivalent positions,
69	consistent with the use of such terms by the Agency for
70	Workforce Innovation for the purpose of unemployment
71	compensation tax, created or retained as a direct result of
72	resulting directly from a project in this state. This number
73	does not include temporary construction jobs involved with the
74	construction of facilities for the project.
75	(3)  APPLICATION PROCESS; REQUIREMENTS; AGENCY
76	DETERMINATION.--
77	(b)  Applications for certification based on the
78	consolidation of a Department of Defense contract or a new
79	Department of Defense contract must be submitted to the office
80	as prescribed by the office and must include, but are not
81	limited to, the following information:
82	1.  The applicant's federal employer identification number,
83	the applicant's Florida sales tax registration number, and a
84	notarized signature of an officer of the applicant.
85	2.  The permanent location of the manufacturing,
86	assembling, fabricating, research, development, or design
87	facility in this state at which the project is or is to be
88	located.
89	3.  The Department of Defense contract numbers of the
90	contract to be consolidated, the new Department of Defense
91	contract number, or the "RFP" number of a proposed Department of
92	Defense contract.
93	4.  The date the contract was executed or is expected to be
94	executed, and the date the contract is due to expire or is
95	expected to expire.
96	5.  The commencement date for project operations under the
97	contract in this state.
98	6.  The number of net new full-time equivalent Florida jobs
99	included in the project as of December 31 of each year and the
100	average wage of such jobs.
101	7.  The number of full-time equivalent Florida jobs to be
102	retained by the project.
103	8.7.  The total number of full-time equivalent employees
104	employed by the applicant in this state.
105	9.8.  The percentage of the applicant's gross receipts
106	derived from Department of Defense contracts during the 5
107	taxable years immediately preceding the date the application is
108	submitted.
109	10.9.  The amount of:
110	a.  Taxes on sales, use, and other transactions paid
111	pursuant to chapter 212;
112	b.  Corporate income taxes paid pursuant to chapter 220;
113	c.  Intangible personal property taxes paid pursuant to
114	chapter 199;
115	d.  Emergency excise taxes paid pursuant to chapter 221;
116	e.  Excise taxes paid on documents pursuant to chapter 201;
117	and
118	f.  Ad valorem taxes paid
119
120	during the 5 fiscal years immediately preceding the date of the
121	application, and the projected amounts of such taxes to be due
122	in the 3 fiscal years immediately following the date of the
123	application.
124	11.10.  The estimated amount of tax refunds to be claimed
125	for each fiscal year.
126	12.11.  A brief statement concerning the applicant's need
127	for tax refunds, and the proposed uses of such refunds by the
128	applicant.
129	13.12.  A resolution adopted by the county commissioners of
130	the county in which the project will be located, which
131	recommends the applicant be approved as a qualified applicant,
132	and which indicates that the necessary commitments of local
133	financial support for the applicant exist. Prior to the adoption
134	of the resolution, the county commission may review the proposed
135	public or private sources of such support and determine whether
136	the proposed sources of local financial support can be provided
137	or, for any applicant whose project is located in a county
138	designated by the Rural Economic Development Initiative, a
139	resolution adopted by the county commissioners of such county
140	requesting that the applicant's project be exempt from the local
141	financial support requirement.
142	14.13.  Any additional information requested by the office.
143	(c)  Applications for certification based on the conversion
144	of defense production jobs to nondefense production jobs must be
145	submitted to the office as prescribed by the office and must
146	include, but are not limited to, the following information:
147	1.  The applicant's federal employer identification number,
148	the applicant's Florida sales tax registration number, and a
149	notarized signature of an officer of the applicant.
150	2.  The permanent location of the manufacturing,
151	assembling, fabricating, research, development, or design
152	facility in this state at which the project is or is to be
153	located.
154	3.  The Department of Defense contract numbers of the
155	contract under which the defense production jobs will be
156	converted to nondefense production jobs.
157	4.  The date the contract was executed, and the date the
158	contract is due to expire or is expected to expire, or was
159	canceled.
160	5.  The commencement date for the nondefense production
161	operations in this state.
162	6.  The number of net new full-time equivalent Florida jobs
163	included in the nondefense production project as of December 31
164	of each year and the average wage of such jobs.
165	7.  The number of full-time equivalent Florida jobs to be
166	retained by the project.
167	8.7.  The total number of full-time equivalent employees
168	employed by the applicant in this state.
169	9.8.  The percentage of the applicant's gross receipts
170	derived from Department of Defense contracts during the 5
171	taxable years immediately preceding the date the application is
172	submitted.
173	10.9.  The amount of:
174	a.  Taxes on sales, use, and other transactions paid
175	pursuant to chapter 212;
176	b.  Corporate income taxes paid pursuant to chapter 220;
177	c.  Intangible personal property taxes paid pursuant to
178	chapter 199;
179	d.  Emergency excise taxes paid pursuant to chapter 221;
180	e.  Excise taxes paid on documents pursuant to chapter 201;
181	and
182	f.  Ad valorem taxes paid
183
184	during the 5 fiscal years immediately preceding the date of the
185	application, and the projected amounts of such taxes to be due
186	in the 3 fiscal years immediately following the date of the
187	application.
188	11.10.  The estimated amount of tax refunds to be claimed
189	for each fiscal year.
190	12.11.  A brief statement concerning the applicant's need
191	for tax refunds, and the proposed uses of such refunds by the
192	applicant.
193	13.12.  A resolution adopted by the county commissioners of
194	the county in which the project will be located, which
195	recommends the applicant be approved as a qualified applicant,
196	and which indicates that the necessary commitments of local
197	financial support for the applicant exist. Prior to the adoption
198	of the resolution, the county commission may review the proposed
199	public or private sources of such support and determine whether
200	the proposed sources of local financial support can be provided
201	or, for any applicant whose project is located in a county
202	designated by the Rural Economic Development Initiative, a
203	resolution adopted by the county commissioners of such county
204	requesting that the applicant's project be exempt from the local
205	financial support requirement.
206	14.13.  Any additional information requested by the office.
207	(d)  Applications for certification based on a contract for
208	reuse of a defense-related facility must be submitted to the
209	office as prescribed by the office and must include, but are not
210	limited to, the following information:
211	1.  The applicant's Florida sales tax registration number
212	and a notarized signature of an officer of the applicant.
213	2.  The permanent location of the manufacturing,
214	assembling, fabricating, research, development, or design
215	facility in this state at which the project is or is to be
216	located.
217	3.  The business entity holding a valid Department of
218	Defense contract or branch of the Armed Forces of the United
219	States that previously occupied the facility, and the date such
220	entity last occupied the facility.
221	4.  A copy of the contract to reuse the facility, or such
222	alternative proof as may be prescribed by the office that the
223	applicant is seeking to contract for the reuse of such facility.
224	5.  The date the contract to reuse the facility was
225	executed or is expected to be executed, and the date the
226	contract is due to expire or is expected to expire.
227	6.  The commencement date for project operations under the
228	contract in this state.
229	7.  The number of full-time equivalent Florida jobs to be
230	retained by the project.
231	8.7.  The number of net new full-time equivalent Florida
232	jobs included in the project as of December 31 of each year and
233	the average wage of such jobs.
234	9.8.  The total number of full-time equivalent employees
235	employed by the applicant in this state.
236	10.9.  The amount of:
237	a.  Taxes on sales, use, and other transactions paid
238	pursuant to chapter 212.
239	b.  Corporate income taxes paid pursuant to chapter 220.
240	c.  Intangible personal property taxes paid pursuant to
241	chapter 199.
242	d.  Emergency excise taxes paid pursuant to chapter 221.
243	e.  Excise taxes paid on documents pursuant to chapter 201.
244	f.  Ad valorem taxes paid during the 5 fiscal years
245	immediately preceding the date of the application, and the
246	projected amounts of such taxes to be due in the 3 fiscal years
247	immediately following the date of the application.
248	11.10.  The estimated amount of tax refunds to be claimed
249	for each fiscal year.
250	12.11.  A brief statement concerning the applicant's need
251	for tax refunds, and the proposed uses of such refunds by the
252	applicant.
253	13.12.  A resolution adopted by the county commissioners of
254	the county in which the project will be located, which
255	recommends the applicant be approved as a qualified applicant,
256	and which indicates that the necessary commitments of local
257	financial support for the applicant exist. Prior to the adoption
258	of the resolution, the county commission may review the proposed
259	public or private sources of such support and determine whether
260	the proposed sources of local financial support can be provided
261	or, for any applicant whose project is located in a county
262	designated by the Rural Economic Development Initiative, a
263	resolution adopted by the county commissioners of such county
264	requesting that the applicant's project be exempt from the local
265	financial support requirement.
266	14.13.  Any additional information requested by the office.
267	(7)  EXPIRATION.--An applicant may not be certified as
268	qualified under this section after June 30, 2007 2004.
269	Section 3.  Subsection (7) of section 288.106, Florida
270	Statutes, is amended to read:
271	288.106  Tax refund program for qualified target industry
272	businesses.--
273	(7)  EXPIRATION.--This section expires January 1, 2007 June
274	30, 2004.
275	Section 4.  The Office of Tourism, Trade, and Economic
276	Development shall attempt to amend existing tax refund
277	agreements created under s. 288.106, Florida Statutes, to
278	require tax refund claims to be submitted by January 31 for the
279	net new full-time equivalent Florida jobs as of December 31 of
280	the preceding calendar year.
281	Section 5.  The Office of Program Policy Analysis and
282	Government Accountability shall conduct a thorough review of the
283	programs set forth in ss. 288.1045 and 288.106, Florida
284	Statutes. The review should include, at a minimum, an evaluation
285	of the benefits that accrue to the state from the programs; an
286	evaluation of the program's administration, including whether
287	the program could be administered more efficiently under a
288	different administrative structure; and an evaluation of whether
289	the Legislature's oversight responsibilities would be better
290	served if the program was structured as a tax credit program
291	instead of as a tax refund program. The review shall include an
292	assessment of the fiscal or administrative benefits of the
293	potential structures reviewed. The review shall be submitted to
294	the Governor, the Speaker of the House of Representatives, and
295	the President of the Senate by December 31, 2004.
296	Section 6.  This act shall take effect upon becoming a law.
297
298
299	================= T I T L E  A M E N D M E N T =================
300	Remove the entire title and insert:
301	A bill to be entitled
302	An act relating to the tax refund program for qualified
303	defense contractors and qualified target industry
304	businesses; amending s. 288.095, F.S.; requiring payment
305	of claims for tax refunds in the order approved by the
306	Office of Tourism, Trade, and Economic Development;
307	specifying that unsatisfied tax refunds have first claim
308	to certain subsequent year appropriations under certain
309	circumstances; requiring the office to notify legislative
310	appropriations committees of certain funds shortfalls;
311	requiring Enterprise Florida, Inc., to report on the
312	efforts of the Office of Tourism, Trade, and Economic
313	Development to amend tax refund agreements; amending s.
314	288.1045, F.S.; defining the term "jobs" to include new
315	and retained jobs; requiring applications for
316	certification to include the number of jobs retained;
317	providing that new applicants may not be certified for the
318	tax refund program for qualified defense contractors after
319	June 30, 2007; amending s. 288.106, F.S.; revising an
320	expiration date for the tax refund program for qualified
321	target industry businesses; requiring the Office of
322	Tourism, Trade, and Economic Development to attempt to
323	amend certain tax refund agreements, to conform; requiring
324	the Office of Program Policy Analysis and Government
325	Accountability to review certain programs; providing
326	review criteria; requiring a report to the Governor and
327	Legislature; providing an effective date.

CODING: Words stricken are deletions; words underlined are additions.