Senate Bill sb1494c1
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Florida Senate - 2004 CS for SB 1494
By the Committee on Commerce, Economic Opportunities, and
Consumer Services; and Senators Garcia and Lynn
310-2095-04
1 A bill to be entitled
2 An act relating to tax refund programs for
3 qualified target industry businesses and
4 qualified defense contractors; amending s.
5 288.095, F.S.; requiring the Office of Tourism,
6 Trade, and Economic Development to pay claims
7 for tax refunds in the order approved;
8 requiring Enterprise Florida, Inc., to report
9 on the efforts of the Office of Tourism, Trade,
10 and Economic Development to amend tax refund
11 agreements; requiring Enterprise Florida, Inc.,
12 to report the name and tax refund amount paid
13 to each business under the programs; amending
14 s. 288.1045, F.S.; defining the term "jobs" to
15 include new and retained jobs; requiring
16 applications for certification to include the
17 number of jobs retained; providing that new
18 applicants may not be certified for the tax
19 refund program for qualified defense
20 contractors after June 30, 2009; specifying
21 that tax refund agreements existing on that
22 date continue in effect; amending s. 288.106,
23 F.S.; providing that new applicants may not be
24 certified for the tax refund program for
25 qualified target industry businesses after June
26 30, 2009; specifying that tax refund agreements
27 existing on that date continue in effect;
28 requiring the Office of Tourism, Trade, and
29 Economic Development to attempt to amend
30 certain tax refund agreements, to conform;
31 providing an effective date.
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Florida Senate - 2004 CS for SB 1494
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1 Be It Enacted by the Legislature of the State of Florida:
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3 Section 1. Paragraphs (b) and (c) of subsection (3) of
4 section 288.095, Florida Statutes, are amended to read:
5 288.095 Economic Development Trust Fund.--
6 (3)
7 (b) The total amount of tax refund claims approved for
8 payment by the Office of Tourism, Trade, and Economic
9 Development based on actual project performance may not exceed
10 the amount appropriated to the Economic Development Incentives
11 Account for such purposes for the fiscal year. Claims for tax
12 refunds under ss. 288.1045 and 288.106 shall be paid in the
13 order the claims are approved by the Office of Tourism, Trade,
14 and Economic Development. In the event the Legislature does
15 not appropriate an amount sufficient to satisfy the estimates
16 by the office for tax refunds under ss. 288.1045 and 288.106
17 in a fiscal year, the Office of Tourism, Trade, and Economic
18 Development shall pay the tax refunds from the appropriation
19 for the following fiscal year. By March 1 of each year, the
20 Office of Tourism, Trade, and Economic Development shall
21 notify the legislative appropriations committees of any
22 anticipated shortfall in the amount of funds needed to satisfy
23 claims for tax refunds from the appropriation for the current
24 fiscal year., not later than July 15 of such year, determine
25 the proportion of each refund claim which shall be paid by
26 dividing the amount appropriated for tax refunds for the
27 fiscal year by the estimated total of refund claims for the
28 fiscal year. The amount of each claim for a tax refund shall
29 be multiplied by the resulting quotient. If, after the payment
30 of all such refund claims, funds remain in the Economic
31 Development Incentives Account for tax refunds, the office
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Florida Senate - 2004 CS for SB 1494
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1 shall recalculate the proportion for each refund claim and
2 adjust the amount of each claim accordingly.
3 (c) By December 31 of each year, Enterprise Florida,
4 Inc., shall submit a complete and detailed report to the
5 Governor, the President of the Senate, the Speaker of the
6 House of Representatives, and the director of the Office of
7 Tourism, Trade, and Economic Development of all applications
8 received, recommendations made to the Office of Tourism,
9 Trade, and Economic Development, final decisions issued, tax
10 refund agreements executed, and tax refunds paid or other
11 payments made under all programs funded out of the Economic
12 Development Incentives Account, including analyses of benefits
13 and costs, types of projects supported, and employment and
14 investment created. Enterprise Florida, Inc., shall also
15 include a separate analysis of the impact of such tax refunds
16 on state enterprise zones designated pursuant to s. 290.0065,
17 rural communities, brownfield areas, and distressed urban
18 communities. The report must discuss whether the authority and
19 moneys appropriated by the Legislature to the Economic
20 Development Incentives Account were managed and expended in a
21 prudent, fiducially sound manner. The report must also discuss
22 the efforts made by the Office of Tourism, Trade, and Economic
23 Development to amend tax refund agreements to require tax
24 refund claims to be submitted by January 31 for the net new
25 full-time equivalent Florida jobs as of December 31 of the
26 preceding calendar year. The report must also list the name
27 and tax refund amount for each business that has received a
28 tax refund under s. 288.1045 or s. 288.106 during the prior
29 fiscal year. The Office of Tourism, Trade, and Economic
30 Development shall assist Enterprise Florida, Inc., in the
31
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Florida Senate - 2004 CS for SB 1494
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1 collection of data related to business performance and
2 incentive payments.
3 Section 2. Paragraph (g) of subsection (1), paragraphs
4 (b), (c), and (d) of subsection (3), and subsection (7) of
5 section 288.1045, Florida Statutes, are amended to read:
6 288.1045 Qualified defense contractor tax refund
7 program.--
8 (1) DEFINITIONS.--As used in this section:
9 (g) "Jobs" means full-time equivalent positions,
10 consistent with the use of such terms by the Agency for
11 Workforce Innovation for the purpose of unemployment
12 compensation tax, created or retained as a direct result of
13 resulting directly from a project in this state. This number
14 does not include temporary construction jobs involved with the
15 construction of facilities for the project.
16 (3) APPLICATION PROCESS; REQUIREMENTS; AGENCY
17 DETERMINATION.--
18 (b) Applications for certification based on the
19 consolidation of a Department of Defense contract or a new
20 Department of Defense contract must be submitted to the office
21 as prescribed by the office and must include, but are not
22 limited to, the following information:
23 1. The applicant's federal employer identification
24 number, the applicant's Florida sales tax registration number,
25 and a notarized signature of an officer of the applicant.
26 2. The permanent location of the manufacturing,
27 assembling, fabricating, research, development, or design
28 facility in this state at which the project is or is to be
29 located.
30 3. The Department of Defense contract numbers of the
31 contract to be consolidated, the new Department of Defense
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1 contract number, or the "RFP" number of a proposed Department
2 of Defense contract.
3 4. The date the contract was executed or is expected
4 to be executed, and the date the contract is due to expire or
5 is expected to expire.
6 5. The commencement date for project operations under
7 the contract in this state.
8 6. The number of net new full-time equivalent Florida
9 jobs included in the project as of December 31 of each year
10 and the average wage of such jobs.
11 7. The number of full-time equivalent Florida jobs to
12 be retained by the project.
13 8.7. The total number of full-time equivalent
14 employees employed by the applicant in this state.
15 9.8. The percentage of the applicant's gross receipts
16 derived from Department of Defense contracts during the 5
17 taxable years immediately preceding the date the application
18 is submitted.
19 10.9. The amount of:
20 a. Taxes on sales, use, and other transactions paid
21 pursuant to chapter 212;
22 b. Corporate income taxes paid pursuant to chapter
23 220;
24 c. Intangible personal property taxes paid pursuant to
25 chapter 199;
26 d. Emergency excise taxes paid pursuant to chapter
27 221;
28 e. Excise taxes paid on documents pursuant to chapter
29 201; and
30 f. Ad valorem taxes paid
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1 during the 5 fiscal years immediately preceding the date of
2 the application, and the projected amounts of such taxes to be
3 due in the 3 fiscal years immediately following the date of
4 the application.
5 11.10. The estimated amount of tax refunds to be
6 claimed for each fiscal year.
7 12.11. A brief statement concerning the applicant's
8 need for tax refunds, and the proposed uses of such refunds by
9 the applicant.
10 13.12. A resolution adopted by the county
11 commissioners of the county in which the project will be
12 located, which recommends the applicant be approved as a
13 qualified applicant, and which indicates that the necessary
14 commitments of local financial support for the applicant
15 exist. Prior to the adoption of the resolution, the county
16 commission may review the proposed public or private sources
17 of such support and determine whether the proposed sources of
18 local financial support can be provided or, for any applicant
19 whose project is located in a county designated by the Rural
20 Economic Development Initiative, a resolution adopted by the
21 county commissioners of such county requesting that the
22 applicant's project be exempt from the local financial support
23 requirement.
24 14.13. Any additional information requested by the
25 office.
26 (c) Applications for certification based on the
27 conversion of defense production jobs to nondefense production
28 jobs must be submitted to the office as prescribed by the
29 office and must include, but are not limited to, the following
30 information:
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Florida Senate - 2004 CS for SB 1494
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1 1. The applicant's federal employer identification
2 number, the applicant's Florida sales tax registration number,
3 and a notarized signature of an officer of the applicant.
4 2. The permanent location of the manufacturing,
5 assembling, fabricating, research, development, or design
6 facility in this state at which the project is or is to be
7 located.
8 3. The Department of Defense contract numbers of the
9 contract under which the defense production jobs will be
10 converted to nondefense production jobs.
11 4. The date the contract was executed, and the date
12 the contract is due to expire or is expected to expire, or was
13 canceled.
14 5. The commencement date for the nondefense production
15 operations in this state.
16 6. The number of net new full-time equivalent Florida
17 jobs included in the nondefense production project as of
18 December 31 of each year and the average wage of such jobs.
19 7. The number of full-time equivalent Florida jobs to
20 be retained by the project.
21 8.7. The total number of full-time equivalent
22 employees employed by the applicant in this state.
23 9.8. The percentage of the applicant's gross receipts
24 derived from Department of Defense contracts during the 5
25 taxable years immediately preceding the date the application
26 is submitted.
27 10.9. The amount of:
28 a. Taxes on sales, use, and other transactions paid
29 pursuant to chapter 212;
30 b. Corporate income taxes paid pursuant to chapter
31 220;
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Florida Senate - 2004 CS for SB 1494
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1 c. Intangible personal property taxes paid pursuant to
2 chapter 199;
3 d. Emergency excise taxes paid pursuant to chapter
4 221;
5 e. Excise taxes paid on documents pursuant to chapter
6 201; and
7 f. Ad valorem taxes paid
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9 during the 5 fiscal years immediately preceding the date of
10 the application, and the projected amounts of such taxes to be
11 due in the 3 fiscal years immediately following the date of
12 the application.
13 11.10. The estimated amount of tax refunds to be
14 claimed for each fiscal year.
15 12.11. A brief statement concerning the applicant's
16 need for tax refunds, and the proposed uses of such refunds by
17 the applicant.
18 13.12. A resolution adopted by the county
19 commissioners of the county in which the project will be
20 located, which recommends the applicant be approved as a
21 qualified applicant, and which indicates that the necessary
22 commitments of local financial support for the applicant
23 exist. Prior to the adoption of the resolution, the county
24 commission may review the proposed public or private sources
25 of such support and determine whether the proposed sources of
26 local financial support can be provided or, for any applicant
27 whose project is located in a county designated by the Rural
28 Economic Development Initiative, a resolution adopted by the
29 county commissioners of such county requesting that the
30 applicant's project be exempt from the local financial support
31 requirement.
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1 14.13. Any additional information requested by the
2 office.
3 (d) Applications for certification based on a contract
4 for reuse of a defense-related facility must be submitted to
5 the office as prescribed by the office and must include, but
6 are not limited to, the following information:
7 1. The applicant's Florida sales tax registration
8 number and a notarized signature of an officer of the
9 applicant.
10 2. The permanent location of the manufacturing,
11 assembling, fabricating, research, development, or design
12 facility in this state at which the project is or is to be
13 located.
14 3. The business entity holding a valid Department of
15 Defense contract or branch of the Armed Forces of the United
16 States that previously occupied the facility, and the date
17 such entity last occupied the facility.
18 4. A copy of the contract to reuse the facility, or
19 such alternative proof as may be prescribed by the office that
20 the applicant is seeking to contract for the reuse of such
21 facility.
22 5. The date the contract to reuse the facility was
23 executed or is expected to be executed, and the date the
24 contract is due to expire or is expected to expire.
25 6. The commencement date for project operations under
26 the contract in this state.
27 7. The number of net new full-time equivalent Florida
28 jobs included in the project as of December 31 of each year
29 and the average wage of such jobs.
30 8. The number of full-time equivalent Florida jobs to
31 be retained by the project.
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Florida Senate - 2004 CS for SB 1494
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1 9.8. The total number of full-time equivalent
2 employees employed by the applicant in this state.
3 10.9. The amount of:
4 a. Taxes on sales, use, and other transactions paid
5 pursuant to chapter 212.
6 b. Corporate income taxes paid pursuant to chapter
7 220.
8 c. Intangible personal property taxes paid pursuant to
9 chapter 199.
10 d. Emergency excise taxes paid pursuant to chapter
11 221.
12 e. Excise taxes paid on documents pursuant to chapter
13 201.
14 f. Ad valorem taxes paid during the 5 fiscal years
15 immediately preceding the date of the application, and the
16 projected amounts of such taxes to be due in the 3 fiscal
17 years immediately following the date of the application.
18 11.10. The estimated amount of tax refunds to be
19 claimed for each fiscal year.
20 12.11. A brief statement concerning the applicant's
21 need for tax refunds, and the proposed uses of such refunds by
22 the applicant.
23 13.12. A resolution adopted by the county
24 commissioners of the county in which the project will be
25 located, which recommends the applicant be approved as a
26 qualified applicant, and which indicates that the necessary
27 commitments of local financial support for the applicant
28 exist. Prior to the adoption of the resolution, the county
29 commission may review the proposed public or private sources
30 of such support and determine whether the proposed sources of
31 local financial support can be provided or, for any applicant
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Florida Senate - 2004 CS for SB 1494
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1 whose project is located in a county designated by the Rural
2 Economic Development Initiative, a resolution adopted by the
3 county commissioners of such county requesting that the
4 applicant's project be exempt from the local financial support
5 requirement.
6 14.13. Any additional information requested by the
7 office.
8 (7) EXPIRATION.--An applicant may not be certified as
9 qualified under this section after June 30, 2009 2004. A tax
10 refund agreement existing on that date, however, shall
11 continue in effect in accordance with its terms.
12 Section 3. Subsection (7) of section 288.106, Florida
13 Statutes, is amended to read:
14 288.106 Tax refund program for qualified target
15 industry businesses.--
16 (7) EXPIRATION.--An applicant may not be certified as
17 qualified under this section after June 30, 2009. A tax refund
18 agreement existing on that date, however, shall continue in
19 effect in accordance with its terms. This section expires June
20 30, 2004.
21 Section 4. The Office of Tourism, Trade, and Economic
22 Development shall attempt to amend existing tax refund
23 agreements created under section 288.106, Florida Statutes, to
24 require tax refund claims to be submitted by January 31 for
25 the net new full-time equivalent Florida jobs as of December
26 31 of the preceding calendar year.
27 Section 5. This act shall take effect upon becoming a
28 law.
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 Senate Bill 1494
3
4 The committee substitute adds a requirement that Enterprise
Florida, Inc., list the name and tax refund amount provided to
5 each business under s. 288.1045, F.S., or s. 288.106, F.S., in
its annual report on incentives funded from the Economic
6 Development Incentives Account.
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