Senate Bill sb1708c2

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    Florida Senate - 2004                    CS for CS for SB 1708

    By the Committees on Comprehensive Planning; Commerce,
    Economic Opportunities, and Consumer Services; and Senator
    Saunders



    316-2611-04

  1                      A bill to be entitled

  2         An act relating to economic stimulus; amending

  3         s. 163.2517, F.S.; adding institutions of

  4         higher education to participants in the

  5         collaborative planning process for urban infill

  6         and redevelopment areas; amending s. 163.2526,

  7         F.S.; specifying criteria for evaluating the

  8         performance of local governments in the

  9         implementation of urban infill and

10         redevelopment area planning grants and

11         implementation grants; directing the Office of

12         Tourism, Trade, and Economic Development to

13         develop methods and procedures to assist state

14         agencies and local governments in obtaining

15         state and local grants for revitalization

16         programs for distressed urban communities;

17         directing the Office of Program Policy Analysis

18         and Government Accountability to identify and

19         review current state economic development

20         programs created by statute relative to the

21         revitalization of the state's distressed

22         communities; requiring a report to the

23         Legislature; specifying components of the

24         report; amending s. 212.08, F.S.; revising

25         sales-price criteria for characterizing

26         business property purchased for use in an

27         enterprise zone; amending s. 212.097, F.S.;

28         revising provisions providing for an urban job

29         tax credit program to apply to designated urban

30         job tax credit areas rather than high crime

31         areas; revising and providing definitions,

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 1         eligibility criteria, application procedures

 2         and requirements, and area characteristics and

 3         criteria; authorizing  the transfer of unused

 4         credits; specifying the use of transferred

 5         credits; amending s. 212.098, F.S.; allowing

 6         the transfer of unused credits taken under the

 7         Rural Job Tax Credit Program; amending s.

 8         220.13, F.S.; providing that amounts included

 9         in taxable income by reason of membership or

10         ownership in a limited liability company

11         engaged in a space flight business may be

12         subtracted from taxable income for purposes of

13         determining adjusted federal income; amending

14         s. 220.1895, F.S.; conforming provisions to

15         changes made by the act; removing an obsolete

16         reference; amending s. 288.1045, F.S.;

17         extending, under certain conditions, the period

18         applicable to an exemption under the qualified

19         defense contractor tax refund program; amending

20         s. 288.106, F.S.; extending, under certain

21         conditions, the period applicable to an

22         exemption under the tax refund program for

23         qualified target industry businesses; providing

24         for the continuation of certain tax-refund

25         agreements beyond the expiration date

26         prescribed in this act; amending s. 288.901,

27         F.S.; revising operational criteria of members

28         of the board of directors of Enterprise

29         Florida, Inc.; amending s. 288.90151, F.S.;

30         revising requirements, criteria, and

31         limitations for returns on investment from

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 1         activities of Enterprise Florida, Inc.;

 2         amending s. 288.903, F.S.; deleting an

 3         employment compensation limitation for

 4         employees of Enterprise Florida, Inc.; amending

 5         s. 288.904, F.S.; revising limitations on

 6         contractual powers of the board of directors of

 7         Enterprise Florida, Inc.; amending s. 288.905,

 8         F.S.; revising a pay raise or bonus limitation

 9         for certain employees; repealing s. 288.041(3)

10         and (4), F.S., relating to Enterprise Florida,

11         Inc., and the Department of Commerce assisting

12         in expanding the solar energy industry in this

13         state; repealing s. 288.9015(3), F.S., relating

14         to Enterprise Florida, Inc., responsibility to

15         develop a comprehensive approach to workforce

16         development; amending s. 290.00675, F.S.;

17         authorizing the Office of Tourism, Trade, and

18         Economic Development to amend the boundaries of

19         a certain enterprise zone; providing a

20         limitation; providing conditions; amending s.

21         626.015, F.S.; defining the term "personal

22         lines agent";  amending s. 626.022, F.S.;

23         providing for application; amending s. 626.241,

24         F.S.; limiting the scope of personal lines

25         agent examinations; amending s. 626.311, F.S.;

26         limiting the types of business that may be

27         transacted by personal lines agents; amending

28         s. 626.727, F.S.; providing that certain

29         provisions apply to personal lines agents;

30         amending s. 626.732, F.S.; revising certain

31         education and experience requirements for

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 1         personal lines agents; amending s. 626.747,

 2         F.S.; requiring branch agencies to have certain

 3         licensed agents at each location; amending s.

 4         627.351, F.S.; providing that certain employees

 5         of the Citizens' Property Insurance Corporation

 6         need not be licensed as agents; providing that

 7         the act does not require the Department of

 8         Financial Services to begin issuing certain

 9         licenses by the effective date of the act,

10         under specified conditions; providing effective

11         dates.

12  

13  Be It Enacted by the Legislature of the State of Florida:

14  

15         Section 1.  Paragraph (c) is added to subsection (2) of

16  section 163.2517, Florida Statutes, to read:

17         163.2517  Designation of urban infill and redevelopment

18  area.--

19         (2)

20         (c)  If a community college, university, or other

21  institution of higher education is within the geographical

22  vicinity, local government grant applicants are encouraged to

23  involve such institutions in the visioning and collaborative

24  planning process and to enter into agreements that the

25  institution will contribute resources and expertise to the

26  redevelopment effort.

27         Section 2.  Section 163.2526, Florida Statutes, is

28  amended to read:

29         163.2526  Review and evaluation.--

30         (1)  Before the 2004 Regular Session of the

31  Legislature, the Office of Program Policy Analysis and

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 1  Government Accountability shall perform a review and

 2  evaluation of ss. 163.2511-163.2526, including the financial

 3  incentives listed in s. 163.2520. The report must evaluate the

 4  effectiveness of the designation of urban infill and

 5  redevelopment areas in stimulating urban infill and

 6  redevelopment and strengthening the urban core. A report of

 7  the findings and recommendations of the Office of Program

 8  Policy Analysis and Government Accountability shall be

 9  submitted to the President of the Senate and the Speaker of

10  the House of Representatives before the 2004 Regular Session

11  of the Legislature.

12         (2)  Subsequent to June 1, 2004, local governments that

13  are awarded grants pursuant to s. 163.2523 shall make annual

14  reports to the Department of Community Affairs on performance

15  measures identified in the urban infill and redevelopment plan

16  pursuant to s. 163.2517(3)(n).

17         (a)  Local governments that receive planning grants

18  shall report their progress in creating urban infill and

19  redevelopment plans. The report shall include:

20         1.  A description of the redevelopment objects of the

21  area;

22         2.  Information on stakeholder involvement in creating

23  plans;

24         3.  Specification of whether goals of the plan are

25  consistent with community input they received;

26         4.  Specification of whether plans were adopted by

27  local governments; and

28         5.  Identify which local incentives were approved to

29  encourage private investment.

30         (b)  Local governments that receive implementation

31  grants shall report:

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 1         1.  Progress in implementing activities specified in

 2  their urban infill and redevelopment plans;

 3         2.  Changes in economic and demographic indicators over

 4  time and how these changes compare to objectives specified in

 5  their urban infill and redevelopment plans; and

 6         3.  Information on the types and dollar amounts of

 7  financial incentives used to encourage private investment in

 8  designated areas.

 9         (c)  Grant recipients shall establish appropriate

10  measures, such as inputs, outputs, and outcomes, and standards

11  for evaluating the impact of the grants on local conditions.

12  These measures and standards must be directly linked to goals

13  for redeveloping an area specified in each grant recipient's

14  urban infill and redevelopment plan pursuant to s. 163.2517.

15  Grant recipients shall also compile baseline data on

16  conditions existing prior to an area's designation which can

17  be used to assess changes in conditions over time. Depending

18  on the goals of a grant recipient's urban infill and

19  redevelopment plan, baseline data may need to be compiled on

20  property tax revenues, property tax values, net job creation,

21  and changes in characteristics of resident population to

22  include employment rates, high school graduation rates,

23  homeownership rates, and median income levels.

24         (3)  The Department of Community Affairs shall provide

25  technical assistance to recipients of planning and

26  implementation grants. Such assistance must include assisting

27  grant recipients in creating appropriate measures, standards,

28  and uniform data collection procedures to ensure the

29  reliability and consistency of data that will be used to

30  evaluate performance. The department shall also adopt rules to

31  specify reporting requirements for grant recipients.

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 1         Section 3.  The Office of Tourism, Trade, and Economic

 2  Development of the Executive Office of the Governor shall

 3  develop methods and procedures to assist state agencies and

 4  local governments in obtaining state and federal grants for

 5  revitalization programs for distressed urban communities; to

 6  develop and maintain a current listing of available federal

 7  grants; to assign appropriate staff as contacts for

 8  information on each grant; and to provide technical assistance

 9  necessary for local governments to submit completed grant

10  proposals. Such methods may include the expansion of the

11  existing rural resource directory database to include grants

12  available to urban areas and designation of one or more state

13  entities to provide such assistance as necessary.

14         Section 4.  (1)  The Office of Program Policy Analysis

15  and Government Accountability shall, with the assistance of

16  other legislative committee and agency staff, as appropriate,

17  identify and review current state economic development

18  programs created by statute relative to the revitalization of

19  Florida's distressed communities and shall provide a report to

20  the Legislature by January 31, 2005.

21         (2)  Specifically, the report must:

22         (a)  Identify and profile state economic development

23  programs, including the use of incentives, to be included in

24  the review;

25         (b)  Through site visits, review how local governments

26  use the state programs alone or in combination to help spur

27  revitalization of distressed communities;

28         (c)  Consider in its fieldwork municipal or county

29  jurisdictions with small (fewer than 30,000) populations,

30  medium (between 30,000 and 75,000) populations, and large

31  (more than 75,000) populations;

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 1         (d)  Identify best practices contributing to the

 2  successful implementation of these programs; and

 3         (e)  Identify state practices that facilitate or impede

 4  the use of these programs.

 5         Section 5.  Paragraph (h) of subsection (5) of section

 6  212.08, Florida Statutes, is amended to read:

 7         212.08  Sales, rental, use, consumption, distribution,

 8  and storage tax; specified exemptions.--The sale at retail,

 9  the rental, the use, the consumption, the distribution, and

10  the storage to be used or consumed in this state of the

11  following are hereby specifically exempt from the tax imposed

12  by this chapter.

13         (5)  EXEMPTIONS; ACCOUNT OF USE.--

14         (h)  Business property used in an enterprise zone.--

15         1.  Business property purchased for use by businesses

16  located in an enterprise zone which is subsequently used in an

17  enterprise zone shall be exempt from the tax imposed by this

18  chapter. This exemption inures to the business only through a

19  refund of previously paid taxes. A refund shall be authorized

20  upon an affirmative showing by the taxpayer to the

21  satisfaction of the department that the requirements of this

22  paragraph have been met.

23         2.  To receive a refund, the business must file under

24  oath with the governing body or enterprise zone development

25  agency having jurisdiction over the enterprise zone where the

26  business is located, as applicable, an application which

27  includes:

28         a.  The name and address of the business claiming the

29  refund.

30  

31  

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 1         b.  The identifying number assigned pursuant to s.

 2  290.0065 to the enterprise zone in which the business is

 3  located.

 4         c.  A specific description of the property for which a

 5  refund is sought, including its serial number or other

 6  permanent identification number.

 7         d.  The location of the property.

 8         e.  The sales invoice or other proof of purchase of the

 9  property, showing the amount of sales tax paid, the date of

10  purchase, and the name and address of the sales tax dealer

11  from whom the property was purchased.

12         f.  Whether the business is a small business as defined

13  by s. 288.703(1).

14         g.  If applicable, the name and address of each

15  permanent employee of the business, including, for each

16  employee who is a resident of an enterprise zone, the

17  identifying number assigned pursuant to s. 290.0065 to the

18  enterprise zone in which the employee resides.

19         3.  Within 10 working days after receipt of an

20  application, the governing body or enterprise zone development

21  agency shall review the application to determine if it

22  contains all the information required pursuant to subparagraph

23  2. and meets the criteria set out in this paragraph. The

24  governing body or agency shall certify all applications that

25  contain the information required pursuant to subparagraph 2.

26  and meet the criteria set out in this paragraph as eligible to

27  receive a refund. If applicable, the governing body or agency

28  shall also certify if 20 percent of the employees of the

29  business are residents of an enterprise zone, excluding

30  temporary and part-time employees. The certification shall be

31  in writing, and a copy of the certification shall be

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 1  transmitted to the executive director of the Department of

 2  Revenue. The business shall be responsible for forwarding a

 3  certified application to the department within the time

 4  specified in subparagraph 4.

 5         4.  An application for a refund pursuant to this

 6  paragraph must be submitted to the department within 6 months

 7  after the tax is due on the business property that is

 8  purchased.

 9         5.  The provisions of s. 212.095 do not apply to any

10  refund application made pursuant to this paragraph. The amount

11  refunded on purchases of business property under this

12  paragraph shall be the lesser of 97 percent of the sales tax

13  paid on such business property or $5,000, or, if no less than

14  20 percent of the employees of the business are residents of

15  an enterprise zone, excluding temporary and part-time

16  employees, the amount refunded on purchases of business

17  property under this paragraph shall be the lesser of 97

18  percent of the sales tax paid on such business property or

19  $10,000. A refund approved pursuant to this paragraph shall be

20  made within 30 days of formal approval by the department of

21  the application for the refund. No refund shall be granted

22  under this paragraph unless the amount to be refunded exceeds

23  $100 in sales tax paid on purchases made within a 60-day time

24  period.

25         6.  The department shall adopt rules governing the

26  manner and form of refund applications and may establish

27  guidelines as to the requisites for an affirmative showing of

28  qualification for exemption under this paragraph.

29         7.  If the department determines that the business

30  property is used outside an enterprise zone within 3 years

31  from the date of purchase, the amount of taxes refunded to the

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 1  business purchasing such business property shall immediately

 2  be due and payable to the department by the business, together

 3  with the appropriate interest and penalty, computed from the

 4  date of purchase, in the manner provided by this chapter.

 5  Notwithstanding this subparagraph, business property used

 6  exclusively in:

 7         a.  Licensed commercial fishing vessels,

 8         b.  Fishing guide boats, or

 9         c.  Ecotourism guide boats

10  

11  that leave and return to a fixed location within an area

12  designated under s. 370.28 are eligible for the exemption

13  provided under this paragraph if all requirements of this

14  paragraph are met. Such vessels and boats must be owned by a

15  business that is eligible to receive the exemption provided

16  under this paragraph. This exemption does not apply to the

17  purchase of a vessel or boat.

18         8.  The department shall deduct an amount equal to 10

19  percent of each refund granted under the provisions of this

20  paragraph from the amount transferred into the Local

21  Government Half-cent Sales Tax Clearing Trust Fund pursuant to

22  s. 212.20 for the county area in which the business property

23  is located and shall transfer that amount to the General

24  Revenue Fund.

25         9.  For the purposes of this exemption, "business

26  property" means new or used property defined as "recovery

27  property" in s. 168(c) of the Internal Revenue Code of 1954,

28  as amended, except:

29         a.  Property classified as 3-year property under s.

30  168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;

31  

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 1         b.  Industrial machinery and equipment as defined in

 2  sub-subparagraph (b)6.a. and eligible for exemption under

 3  paragraph (b);

 4         c.  Building materials as defined in sub-subparagraph

 5  (g)8.a.; and

 6         d.  Business property having a sales price of under

 7  $500 $5,000 per unit.

 8         10.  The provisions of this paragraph shall expire and

 9  be void on December 31, 2005.

10         Section 6.  Section 212.097, Florida Statutes, is

11  amended to read:

12         212.097  Designated Urban High-Crime Area Job Tax

13  Credit Area Program.--

14         (1)  As used in this section, the term:

15         (a)  "Eligible business" means any sole proprietorship,

16  firm, partnership, or corporation that is located in a

17  designated urban job tax credit area qualified county and is

18  predominantly engaged in, or is headquarters for a business

19  predominantly engaged in, activities usually provided for

20  consideration by firms classified within the following

21  standard industrial classifications: SIC 01-SIC 09

22  (agriculture, forestry, and fishing); SIC 20-SIC 39

23  (manufacturing); SIC 52-SIC 57 and SIC 59 (retail); SIC 422

24  (public warehousing and storage); SIC 70 (hotels and other

25  lodging places); SIC 7391 (research and development); SIC 781

26  (motion picture production and allied services); SIC 7992

27  (public golf courses); and SIC 7996 (amusement parks); and a

28  targeted industry eligible for the qualified target industry

29  business tax refund under s. 288.106. A call center or similar

30  customer service operation that services a multistate market

31  or international market is also an eligible business. In

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 1  addition, the Office of Tourism, Trade, and Economic

 2  Development may, as part of its final budget request submitted

 3  pursuant to s. 216.023, recommend additions to or deletions

 4  from the list of standard industrial classifications used to

 5  determine an eligible business, and the Legislature may

 6  implement such recommendations. Excluded from eligible

 7  receipts are receipts from retail sales, except such receipts

 8  for SIC 52-SIC 57 and SIC 59 (retail) hotels and other lodging

 9  places classified in SIC 70, public golf courses in SIC 7992,

10  and amusement parks in SIC 7996. For purposes of this

11  paragraph, the term "predominantly" means that more than 50

12  percent of the business's gross receipts from all sources is

13  generated by those activities usually provided for

14  consideration by firms in the specified standard industrial

15  classification. The determination of whether the business is

16  located in a designated urban job tax credit qualified

17  high-crime area and the tier ranking of that area must be

18  based on the date of application for the credit under this

19  section. Commonly owned and controlled entities are to be

20  considered a single business entity.

21         (b)  "Qualified employee" means any employee of an

22  eligible business who performs duties in connection with the

23  operations of the business on a regular, full-time basis for

24  an average of at least 36 hours per week for at least 3 months

25  within the designated urban job tax credit qualified

26  high-crime area in which the eligible business is located. An

27  owner or partner of the eligible business is not a qualified

28  employee. The term also includes an employee leased from an

29  employee leasing company licensed under chapter 468, if such

30  employee has been continuously leased to the employer for an

31  average of at least 36 hours per week for more than 6 months.

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 1         (c)  "New business" means any eligible business first

 2  beginning operation on a site in a designated urban job tax

 3  credit qualified high-crime area and clearly separate from any

 4  other commercial or business operation of the business entity

 5  within a designated urban job tax credit qualified high-crime

 6  area. A business entity that operated an eligible business

 7  within a designated urban job tax credit qualified high-crime

 8  area within the 48 months before the period provided for

 9  application by subsection (2) is not considered a new

10  business.

11         (d)  "Existing business" means any eligible business

12  that does not meet the criteria for a new business.

13         (e)  "Designated urban job tax credit Qualified

14  high-crime area" means an area selected by the Office of

15  Tourism, Trade, and Economic Development in the following

16  manner: every third year, the office shall rank and tier those

17  areas nominated under subsection (7), according to the highest

18  level of distress experienced in the categories enumerated

19  under subsection (7). The Office of Tourism, Trade, and

20  Economic Development shall designate the 30

21  highest-distress-profile urban areas as eligible participants

22  under the urban job tax credit program following prioritized

23  criteria:

24         1.  Highest arrest rates within the geographic area for

25  violent crime and for such other crimes as drug sale, drug

26  possession, prostitution, vandalism, and civil disturbances;

27         2.  Highest reported crime volume and rate of specific

28  property crimes such as business and residential burglary,

29  motor vehicle theft, and vandalism;

30         3.  Highest percentage of reported index crimes that

31  are violent in nature;

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 1         4.  Highest overall index crime volume for the area;

 2  and

 3         5.  Highest overall index crime rate for the geographic

 4  area.

 5  

 6  Tier-one areas are ranked 1 through 5 and represent the

 7  highest crime areas according to this ranking. Tier-two areas

 8  are ranked 6 through 10 according to this ranking. Tier-three

 9  areas are ranked 11 through 15. Notwithstanding this

10  definition, "designated urban job tax credit qualified

11  high-crime area" also means an area that has been designated

12  as a federal Empowerment Zone pursuant to the Taxpayer Relief

13  Act of 1997 or the Community Tax Relief Act of 2000. Such a

14  designated area is ranked in tier three until the areas are

15  reevaluated by the Office of Tourism, Trade, and Economic

16  Development.

17         (f)  "Central business district" means an area

18  comprised of at least 80 percent commercial and government

19  buildings and properties; characterized by a high

20  concentration of retail businesses, service businesses,

21  offices, theaters, and hotels; and located in a Department of

22  Transportation Urban Service Area.

23         (g)  "Urban" means a densely populated nonrural area

24  located within an urban county which consists of a cluster of

25  one or more census blocks, each of which has a population

26  density of at least 400 people per square mile, or an area

27  defined by the most recent United States Census as urban.

28         (2)  A new eligible business may apply for a tax credit

29  under this subsection once at any time during its first year

30  of operation. A new eligible business in a designated urban

31  job tax credit tier-one qualified high-crime area which has at

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 1  least 10 qualified employees on the date of application shall

 2  receive a $1,500 tax credit for each such employee. A new

 3  eligible business in a tier-two qualified high-crime area

 4  which has at least 20 qualified employees on the date of

 5  application shall receive a $1,000 tax credit for each such

 6  employee. A new eligible business in a tier-three qualified

 7  high-crime area which has at least 30 qualified employees on

 8  the date of application shall receive a $500 tax credit for

 9  each such employee.

10         (3)  An existing eligible business may apply for a tax

11  credit under this subsection at any time it is entitled to

12  such credit, except as restricted by this subsection. An

13  existing eligible business in a designated urban job tax

14  credit tier-one qualified high-crime area which on the date of

15  application has at least 10 5 more qualified employees than it

16  had 1 year prior to its date of application shall receive a

17  $1,500 tax credit for each such additional employee. An

18  existing eligible business in a tier-two qualified high-crime

19  area which on the date of application has at least 10 more

20  qualified employees than it had 1 year prior to its date of

21  application shall receive a $1,000 credit for each such

22  additional employee. An existing business in a tier-three

23  qualified high-crime area which on the date of application has

24  at least 15 more qualified employees than it had 1 year prior

25  to its date of application shall receive a $500 tax credit for

26  each such additional employee. An existing eligible business

27  may apply for the credit under this subsection no more than

28  once in any 12-month period. Any existing eligible business

29  that received a credit under subsection (2) may not apply for

30  the credit under this subsection sooner than 12 months after

31  the application date for the credit under subsection (2).

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 1         (4)  For any new eligible business receiving a credit

 2  pursuant to subsection (2), an additional $500 credit shall be

 3  provided for any qualified employee who is a welfare

 4  transition program participant. For any existing eligible

 5  business receiving a credit pursuant to subsection (3), an

 6  additional $500 credit shall be provided for any qualified

 7  employee who is a welfare transition program participant. Such

 8  employee must be employed on the application date and have

 9  been employed less than 1 year. This credit shall be in

10  addition to other credits pursuant to this section regardless

11  of the tier-level of the high-crime area. Appropriate

12  documentation concerning the eligibility of an employee for

13  this credit must be submitted as determined by the department.

14         (5)  To be eligible for a tax credit under subsection

15  (3), the number of qualified employees employed 1 year prior

16  to the application date must be no lower than the number of

17  qualified employees on the application date on which a credit

18  under this section was based for any previous application,

19  including an application under subsection (2).

20         (6)  Any county or municipality, or a county and one or

21  more municipalities together, may apply to the Office of

22  Tourism, Trade, and Economic Development for the designation

23  of an area as a designated urban job tax credit high-crime

24  area after the adoption by the governing body or bodies of a

25  resolution that:

26         (a)  Finds that an urban a high-crime area exists in

27  such county or municipality, or in both the county and one or

28  more municipalities, which chronically exhibits extreme and

29  unacceptable levels of poverty, unemployment, physical

30  deterioration, and economic disinvestment;

31  

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 1         (b)  Determines that the rehabilitation, conservation,

 2  or redevelopment, or a combination thereof, of such an urban a

 3  high-crime area is necessary in the interest of the health,

 4  safety, and welfare of the residents of such county or

 5  municipality, or such county and one or more municipalities;

 6  and

 7         (c)  Determines that the revitalization of such an

 8  urban a high-crime area can occur if the public sector or

 9  private sector can be induced to invest its own resources in

10  productive enterprises that build or rebuild the economic

11  viability of the area.

12         (7)  The governing body of the entity nominating the

13  area shall demonstrate provide to the Office of Tourism,

14  Trade, and Economic Development that the area meets the

15  following:

16         (a)  Income characteristics:

17         1.  Forty percent of area residents are earning wages

18  on an annual basis that are equal to or less than the annual

19  wage of a person who is earning minimum wage; or

20         2.  More than 20 percent of residents or families live

21  below the federal standard of poverty for individuals or a

22  family of four. The overall index crime rate for the

23  geographic area;

24         (b)  Education characteristics:

25         1.  Has a high school dropout rate higher than the

26  county average; or

27         2.  Has a high school graduation rate lower than the

28  state average. The overall index crime volume for the area;

29         (c)  Workforce and employment characteristics:

30         1.  Has an unemployment rate at least 3 percentage

31  points higher than the state's unemployment rate;

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 1         2.  More than 50 percent of families subject to the

 2  welfare-to-work transition time limit are either within 6

 3  months of the time limit or are receiving cash assistance

 4  under a period of hardship extension to the time limit; or

 5         3.  Is identified as a labor surplus area using the

 6  criteria established by the United States Department of

 7  Labor's Employment and Training Administration. The percentage

 8  of reported index crimes that are violent in nature;

 9         (d)  Crime characteristics:

10         1.  Has an arrest rate higher than the state's average

11  rate for such crimes as drug sale, drug possession,

12  prostitution, vandalism, and civil disturbances, as recorded

13  by total crime index of the Department of Law Enforcement; or

14         2.  Ranks in the top 30 percent of zip codes with

15  reported crimes that are violent in nature. The reported crime

16  volume and rate of specific property crimes such as business

17  and residential burglary, motor vehicle theft, and vandalism;

18  and

19         (e)  Residential and commercial property related

20  characteristics:

21         1.  Fifty percent or more of area residents rent;

22         2.a.  Property values are within the lower 50 percent

23  of the county's assessed property values;

24         b.  More than 5 percent of area homes, apartments, or

25  buildings are abandoned, have been condemned within the

26  previous 24 months, or have a greater number of violations of

27  the Florida Building Code than recorded in the remainder of

28  the county or municipality; or

29         c.  Tax or special assessment delinquencies exceed the

30  fair value of the land. The arrest rates within the geographic

31  area for violent crime and for such other crimes as drug sale,

                                  19

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 1  drug possession, prostitution, disorderly conduct, vandalism,

 2  and other public-order offenses.

 3         (8)  A municipality, or a county and one or more

 4  municipalities together, may not nominate more than one urban

 5  high-crime area. However, any county as defined by s.

 6  125.011(1) may nominate no more than three urban high-crime

 7  areas.

 8         (9)(a)  An area nominated by a county or municipality,

 9  or a county and one or more municipalities together, for

10  designation as an urban job tax credit a high-crime area shall

11  be eligible only if it meets the following criteria:

12         1.(a)  The selected area does not exceed 20 square

13  miles and either has a continuous boundary or consists of not

14  more than three noncontiguous parcels.;

15         2.(b)  The selected area does not exceed the following

16  mileage limitation:

17         a.1.  For areas communities having a total population

18  of 150,000 persons or more, the selected area does not exceed

19  20 square miles and is within 10 miles of the central business

20  district of a city.

21         b.2.  For areas communities having a total population

22  of 50,000 persons or more, but fewer than 150,000 persons, the

23  selected area does not exceed 10 square miles and is within

24  7.5 miles of the central business district of a city.

25         c.3.  For areas communities having a total population

26  of 20,000 persons or more, but fewer than 50,000 persons, the

27  selected area does not exceed 5 square miles and is within 5

28  miles of the central business district of a city.

29         d.4.  For areas communities having a total population

30  of fewer than 20,000 persons, the selected area does not

31  

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 1  exceed 3 square miles and is within 3 miles of the central

 2  business district of a city.

 3         (b)  A designated urban job tax credit area may not

 4  include any portion of a central business district, unless the

 5  poverty rate for each census geographic block group in the

 6  district is not less than 30 percent.

 7         (10)(a)  In order to claim this credit, an eligible

 8  business must file under oath with the Office of Tourism,

 9  Trade, and Economic Development a statement that includes the

10  name and address of the eligible business and any other

11  information that is required to process the application.

12         (b)  Within 30 working days after receipt of an

13  application for credit, the Office of Tourism, Trade, and

14  Economic Development shall review the application to determine

15  whether it contains all the information required by this

16  subsection and meets the criteria set out in this section.

17  Subject to the provisions of paragraph (c), the Office of

18  Tourism, Trade, and Economic Development shall approve all

19  applications that contain the information required by this

20  subsection and meet the criteria set out in this section as

21  eligible to receive a credit.

22         (c)  The maximum credit amount that may be approved

23  during any calendar year is $5 million, of which $1 million

24  shall be exclusively reserved for tier-one areas. The

25  Department of Revenue, in conjunction with the Office of

26  Tourism, Trade, and Economic Development, shall notify the

27  governing bodies in areas designated under this section as

28  urban high-crime areas when the $5 million maximum amount has

29  been reached. Applications must be considered for approval in

30  the order in which they are received without regard to whether

31  the credit is for a new or existing business. This limitation

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 1  applies to the value of the credit as contained in approved

 2  applications. Approved credits may be taken in the time and

 3  manner allowed pursuant to this section.

 4         (11)  If the application is insufficient to support the

 5  credit authorized in this section, the Office of Tourism,

 6  Trade, and Economic Development shall deny the credit and

 7  notify the business of that fact. The business may reapply for

 8  this credit within 3 months after such notification.

 9         (12)  If the credit under this section is greater than

10  can be taken on a single tax return, excess amounts may be

11  taken as credits on any tax return submitted within 12 months

12  after the approval of the application by the department.

13         (13)  It is the responsibility of each business to

14  affirmatively demonstrate to the satisfaction of the

15  Department of Revenue that it meets the requirements of this

16  section.

17         (14)  Any person who fraudulently claims this credit is

18  liable for repayment of the credit plus a mandatory penalty of

19  100 percent of the credit and is guilty of a misdemeanor of

20  the second degree, punishable as provided in s. 775.082 or s.

21  775.083.

22         (15)  A corporation may take the credit under this

23  section against its corporate income tax liability, as

24  provided in s. 220.1895. However, a corporation that applies

25  its job tax credit against the tax imposed by chapter 220 may

26  not receive the credit provided for in this section. A credit

27  may be taken against only one tax.

28         (16)  An eligible business may transfer any unused

29  credit in whole or in units of no less than 25 percent of the

30  remaining credit. The entity that acquires the credit may use

31  it in the same manner and with the same limitation as

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 1  described in this section. Such transferred credits may not be

 2  transferred again, although they may succeed to a surviving or

 3  acquiring entity subject to the conditions and limitations

 4  described in this section.

 5         (17)(16)  The department shall adopt rules governing

 6  the manner and form of applications for credit or transfers of

 7  credit and may establish guidelines concerning the requisites

 8  for an affirmative showing of qualification for the credit

 9  under this section.

10         Section 7.  Present subsection (12) of section 212.098,

11  Florida Statutes, is redesignated as subsection (13), and a

12  new subsection (12) is added to that section, to read:

13         212.098  Rural Job Tax Credit Program.--

14         (12)  An eligible business may transfer any unused

15  credit in whole or in units of not less than 25 percent of the

16  remaining credit. The entity that acquires the credit may use

17  it in the same manner and with the same limitation as

18  described in this section. Such transferred credit may not be

19  transferred again, although the credit may succeed to a

20  surviving or acquiring entity subject to the conditions and

21  limitations described in this section.

22         Section 8.  Effective July 1, 2005, paragraph (b) of

23  subsection (1) of section 220.13, Florida Statutes, is amended

24  to read:

25         220.13  "Adjusted federal income" defined.--

26         (1)  The term "adjusted federal income" means an amount

27  equal to the taxpayer's taxable income as defined in

28  subsection (2), or such taxable income of more than one

29  taxpayer as provided in s. 220.131, for the taxable year,

30  adjusted as follows:

31         (b)  Subtractions.--

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 1         1.  There shall be subtracted from such taxable income:

 2         a.  The net operating loss deduction allowable for

 3  federal income tax purposes under s. 172 of the Internal

 4  Revenue Code for the taxable year;,

 5         b.  The net capital loss allowable for federal income

 6  tax purposes under s. 1212 of the Internal Revenue Code for

 7  the taxable year;,

 8         c.  The excess charitable contribution deduction

 9  allowable for federal income tax purposes under s. 170(d)(2)

10  of the Internal Revenue Code for the taxable year;, and

11         d.  The excess contributions deductions allowable for

12  federal income tax purposes under s. 404 of the Internal

13  Revenue Code for the taxable year; and.

14         e.  All amounts included in taxable income by reason of

15  membership or ownership of an interest in a limited liability

16  company that:

17         (I)  Came into existence before January 1, 2004;

18         (II)  Is classified as a partnership for federal income

19  tax purposes;

20         (III)  Has at least 3,500 full-time employees in this

21  state throughout the taxable year; and

22         (IV)  Is, in this state, engaged primarily in a space

23  flight business as defined in s. 212.031(1)(a)13.

24  

25  However, a net operating loss and a capital loss shall never

26  be carried back as a deduction to a prior taxable year, but

27  all deductions attributable to such losses shall be deemed net

28  operating loss carryovers and capital loss carryovers,

29  respectively, and treated in the same manner, to the same

30  extent, and for the same time periods as are prescribed for

31  

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 1  such carryovers in ss. 172 and 1212, respectively, of the

 2  Internal Revenue Code.

 3         2.  There shall be subtracted from such taxable income

 4  any amount to the extent included therein the following:

 5         a.  Dividends treated as received from sources without

 6  the United States, as determined under s. 862 of the Internal

 7  Revenue Code.

 8         b.  All amounts included in taxable income under s. 78

 9  or s. 951 of the Internal Revenue Code.

10  

11  However, as to any amount subtracted under this subparagraph,

12  there shall be added to such taxable income all expenses

13  deducted on the taxpayer's return for the taxable year which

14  are attributable, directly or indirectly, to such subtracted

15  amount. Further, no amount shall be subtracted with respect to

16  dividends paid or deemed paid by a Domestic International

17  Sales Corporation.

18         3.  In computing "adjusted federal income" for taxable

19  years beginning after December 31, 1976, there shall be

20  allowed as a deduction the amount of wages and salaries paid

21  or incurred within this state for the taxable year for which

22  no deduction is allowed pursuant to s. 280C(a) of the Internal

23  Revenue Code (relating to credit for employment of certain new

24  employees).

25         4.  There shall be subtracted from such taxable income

26  any amount of nonbusiness income included therein.

27         5.  There shall be subtracted any amount of taxes of

28  foreign countries allowable as credits for taxable years

29  beginning on or after September 1, 1985, under s. 901 of the

30  Internal Revenue Code to any corporation which derived less

31  than 20 percent of its gross income or loss for its taxable

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 1  year ended in 1984 from sources within the United States, as

 2  described in s. 861(a)(2)(A) of the Internal Revenue Code, not

 3  including credits allowed under ss. 902 and 960 of the

 4  Internal Revenue Code, withholding taxes on dividends within

 5  the meaning of sub-subparagraph 2.a., and withholding taxes on

 6  royalties, interest, technical service fees, and capital

 7  gains.

 8         6.  Notwithstanding any other provision of this code,

 9  except with respect to amounts subtracted pursuant to

10  subparagraphs 1. and 3., any increment of any apportionment

11  factor which is directly related to an increment of gross

12  receipts or income which is deducted, subtracted, or otherwise

13  excluded in determining adjusted federal income shall be

14  excluded from both the numerator and denominator of such

15  apportionment factor. Further, all valuations made for

16  apportionment factor purposes shall be made on a basis

17  consistent with the taxpayer's method of accounting for

18  federal income tax purposes.

19         Section 9.  Section 220.1895, Florida Statutes, is

20  amended to read:

21         220.1895  Rural Job Tax Credit and Designated Urban

22  High-Crime Area Job Tax Credit Area.--There shall be allowed a

23  credit against the tax imposed by this chapter amounts

24  approved by the Office of Tourism, Trade, and Economic

25  Development pursuant to the Rural Job Tax Credit Program in s.

26  212.098 and the Designated Urban High-Crime Area Job Tax

27  Credit Area Program in s. 212.097. A corporation that uses its

28  credit against the tax imposed by this chapter may not take

29  the credit against the tax imposed by chapter 212. If any

30  credit granted under this section is not fully used in the

31  first year for which it becomes available, the unused amount

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 1  may be carried forward for a period not to exceed 5 years. The

 2  carryover may be used in a subsequent year when the tax

 3  imposed by this chapter for such year exceeds the credit for

 4  such year under this section after applying the other credits

 5  and unused credit carryovers in the order provided in s.

 6  220.02(8). The Office of Tourism, Trade, and Economic

 7  Development shall conduct a review of the Urban High-Crime

 8  Area Job Tax Credit and the Rural Job Tax Credit Program and

 9  submit its report to the Governor, the President of the

10  Senate, and the Speaker of the House of Representatives by

11  February 1, 2000.

12         Section 10.  Subsection (7) of section 288.1045,

13  Florida Statutes, is amended to read:

14         288.1045  Qualified defense contractor tax refund

15  program.--

16         (7)  EXPIRATION.--An applicant may not be certified as

17  qualified under this section after June 30, 2009 2004.

18  However, a tax-refund agreement that is in effect on that date

19  shall continue in effect in accordance with its terms.

20         Section 11.  Subsection (7) of section 288.106, Florida

21  Statutes, is amended to read:

22         288.106  Tax refund program for qualified target

23  industry businesses.--

24         (7)  EXPIRATION.--This section expires June 30, 2009

25  2004. However, a tax-refund agreement that is in effect on

26  that date shall continue in effect in accordance with its

27  terms.

28         Section 12.  Subsections (7), (8), and (11) of section

29  288.901, Florida Statutes, are amended to read:

30         288.901  Enterprise Florida, Inc.; creation;

31  membership; organization; meetings; disclosure.--

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 1         (7)  The Governor shall serve as chairperson of the

 2  board of directors. The board of directors shall biennially

 3  elect one of its appointive members as vice chairperson. The

 4  president shall keep a record of the proceedings of the board

 5  of directors and is the custodian of all books, documents, and

 6  papers filed with the board of directors, the minutes of the

 7  board of directors, and the official seal of Enterprise

 8  Florida, Inc.

 9         (8)  The board of directors shall meet at least four

10  times each year, upon the call of the chairperson, at the

11  request of the vice chairperson, or at the request of a

12  majority of the membership. A majority of the total number of

13  current, voting all directors fixed by subsection (3) shall

14  constitute a quorum. The board of directors may take official

15  action by a majority vote of the members present at any

16  meeting at which a quorum is present.

17         (11)  Notwithstanding the provisions of subsection (3),

18  the board of directors may by resolution appoint at-large

19  members to the board from the private sector, each of whom may

20  serve a 1-year term. At-large members shall have the powers

21  and duties of other members of the board, except that they may

22  not serve on an executive committee. An at-large member is

23  eligible for reappointment but may not vote on his or her own

24  reappointment. An at-large member shall be eligible to fill

25  vacancies occurring among private-sector appointees under

26  subsection (3).

27         Section 13.  Subsection (1), paragraph (b) of

28  subsection (4), and subsections (5), (7), and (8) of section

29  288.90151, Florida Statutes, are amended to read:

30         288.90151  Return on investment from activities of

31  Enterprise Florida, Inc.--

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 1         (1)  The public funds appropriated each year for the

 2  operation of Enterprise Florida, Inc., are invested in this

 3  public-private partnership to enhance international trade and

 4  economic development, to spur job-creating investments, and

 5  to create new employment opportunities for Floridians, and to

 6  prepare Floridians for those jobs. This policy will be the

 7  Legislature's priority consideration when reviewing the

 8  return-on-investment for Enterprise Florida, Inc.

 9         (4)

10         (b)  The board of directors of Enterprise Florida,

11  Inc., shall adopt for each upcoming fiscal year an operating

12  budget for the organization that specifies the intended uses

13  of the state's operating investment and a plan for securing

14  private-sector support to Enterprise Florida, Inc. Each fiscal

15  year private-sector support to Enterprise Florida, Inc., shall

16  equal no less than 100 percent of the state's operating

17  investment, including at least $1 million in cash as defined

18  in paragraph (5)(a), and an additional $400,000 in cash as

19  defined in paragraphs (5)(a), (b), and (c).

20         (5)  Private-sector support in operating Enterprise

21  Florida, Inc., includes:

22         (a)  Cash given directly to Enterprise Florida, Inc.,

23  for its operations, excluding contributions from grantees or

24  from companies with Enterprise Florida, Inc., contracts

25  representing more than 5 percent of the value of all

26  Enterprise Florida, Inc., contracts, exclusive of grants, or

27  more than 5 percent of the company's revenues. Cash in this

28  category is not subject to restrictions on the use of

29  appropriated funds. operating budget;

30         (b)  Cash jointly raised by Enterprise Florida, Inc.,

31  and a local economic development organization, a group of such

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 1  organizations, or a statewide business organization that

 2  supports collaborative projects.;

 3         (c)  Cash generated by fees charged for products or

 4  services of Enterprise Florida, Inc., and by sponsorship of

 5  events, missions, programs, and publications; and

 6         (d)  In-kind contributions directly to Enterprise

 7  Florida, Inc., including: business expenditures; business

 8  services provided; business support; or other business

 9  contributions that augment the operations, program,

10  activities, or assets of Enterprise Florida, Inc., including,

11  but not limited to: an individual's time and expertise;

12  sponsored publications; private-sector staff services; payment

13  for advertising placements; sponsorship of events; sponsored

14  or joint research; discounts on leases or purchases; mission

15  or program sponsorship; and copayments, stock, warrants,

16  royalties, or other private resources dedicated to Enterprise

17  Florida, Inc.

18         (7)  As part of the annual report required under s.

19  288.906, Enterprise Florida, Inc., shall include a study

20  provide the Legislature with information quantifying the

21  public's return-on-investment as described in this section for

22  fiscal year 1997-1998 and each subsequent fiscal year. The

23  annual report shall also include the results of a

24  customer-satisfaction survey of businesses served, as well as

25  the lead economic development staff person of each primary

26  partner organization local economic development organization

27  that employs a full-time or part-time staff person.

28         (8)  Enterprise Florida, Inc., in consultation with the

29  Office of Program Policy Analysis and Government

30  Accountability, shall hire an economic analysis a private

31  accounting firm to develop the methodology for establishing

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 1  and reporting return-on-investment and in-kind contributions

 2  as described in this section and a firm experienced in survey

 3  research to develop, analyze, and report on the results of the

 4  customer-satisfaction survey. The Office of Program Policy

 5  Analysis and Government Accountability shall review and offer

 6  feedback on the methodology before it is implemented. The

 7  private accounting firm shall certify whether the applicable

 8  statements in the annual report comply with this subsection.

 9         Section 14.  Subsection (3) of section 288.903, Florida

10  Statutes, is amended to read:

11         288.903  Board of directors of Enterprise Florida,

12  Inc.; president; employees.--

13         (3)  The board of directors of Enterprise Florida,

14  Inc., and its officers shall be responsible for the prudent

15  use of all public and private funds and shall ensure that the

16  use of such funds is in accordance with all applicable laws,

17  bylaws, or contractual requirements. No employee of Enterprise

18  Florida, Inc., may receive compensation for employment which

19  exceeds the salary paid to the Governor, unless the board of

20  directors and the employee have executed a contract that

21  prescribes specific, measurable performance outcomes for the

22  employee, the satisfaction of which provides the basis for the

23  award of incentive payments that increase the employee's total

24  compensation to a level above the salary paid to the Governor.

25         Section 15.  Paragraph (b) of subsection (1) of section

26  288.904, Florida Statutes, is amended to read:

27         288.904  Powers of the board of directors of Enterprise

28  Florida, Inc.--

29         (1)  The board of directors of Enterprise Florida,

30  Inc., shall have the power to:

31  

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 1         (b)1.  Make and enter into contracts and other

 2  instruments necessary or convenient for the exercise of its

 3  powers and functions, except that any contract made with an

 4  organization represented on the board of directors that

 5  exceeds 5 percent of the total annual amount of contracts of

 6  Enterprise Florida, Inc., exclusive of grants, or 5 percent of

 7  the represented organization's annual revenue must be approved

 8  by a two-thirds vote of the entire board members in attendance

 9  at a meeting at which a quorum is present of directors, and

10  the board member representing such organization shall abstain

11  from voting. No more than 65 percent of the dollar value of

12  all contracts or other agreements entered into in any fiscal

13  year, exclusive of grant programs, shall be made with an

14  organization represented on the board of directors. This

15  section does not apply to contracts awarded by another entity

16  to an organization represented on the board of directors or to

17  contracts if Enterprise Florida, Inc., is the recipient of

18  funds from an organization represented on the board of

19  directors An organization represented on the board may not

20  enter into a contract to receive a state-funded economic

21  development incentive or similar grant, unless such incentive

22  award is specifically endorsed by a two-thirds vote of the

23  entire board. The board member representing such organization,

24  if applicable, shall abstain from voting and refrain from

25  discussing the issue with other members of the board. No more

26  than 50 percent of the dollar value of grants issued by the

27  board in any fiscal year may go to businesses associated with

28  board members.

29         2.  A contract that Enterprise Florida, Inc., executes

30  with a person or organization under which such person or

31  organization agrees to perform economic development services

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 1  or similar business assistance services on behalf of

 2  Enterprise Florida, Inc., or on behalf of the state must

 3  include provisions requiring that such person or organization

 4  report on performance, account for proper use of funds

 5  provided under the contract, coordinate with other components

 6  of state and local economic development systems, and avoid

 7  duplication of existing state and local services and

 8  activities.

 9         Section 16.  Subsection (6) of section 288.905, Florida

10  Statutes, is amended to read:

11         288.905  Duties of the board of directors of Enterprise

12  Florida, Inc.--

13         (6)  Any employee leased by Enterprise Florida, Inc.,

14  from the state, or any employee who derives his or her salary

15  from funds appropriated by the Legislature, may not receive a

16  pay raise or bonus in excess of a pay raise or bonus that is

17  received by similarly situated state employees. However, this

18  subsection does not prohibit the payment of a pay raise or

19  bonus from funds received from sources other than the Florida

20  Legislature.

21         Section 17.  Subsections (3) and (4) of section

22  288.041, Florida Statutes, are repealed:

23         288.041  Solar energy industry; legislative findings

24  and policy; promotional activities.--

25         (3)  Enterprise Florida, Inc., and its boards shall

26  assist in the expansion of the solar energy industry in this

27  state. Such efforts shall be undertaken in cooperation with

28  the Department of Community Affairs, the Florida Solar Energy

29  Center, and the Florida Solar Energy Industries Association,

30  and shall include:

31  

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 1         (a)  Providing assistance and support to new and

 2  existing photovoltaic companies, with special emphasis on

 3  attracting one or more manufacturers of photovoltaic products

 4  to locate within this state.

 5         (b)  Sponsoring initiatives which aid and take full

 6  advantage of the export market potential of solar

 7  technologies.

 8         (c)  Informing the business sector of this state about

 9  opportunities for cost-effective commercial applications of

10  solar technologies.

11         (d)  Encouraging employment of residents of this state

12  by solar energy companies.

13         (e)  Retaining existing solar energy companies and

14  supporting their expansion efforts in this state.

15         (f)  Supporting the promotion of solar energy by

16  sponsoring workshops, seminars, conferences, and educational

17  programs on the benefits of solar energy.

18         (g)  Recognizing outstanding developments and

19  achievements in, and contributions to, the solar energy

20  industry.

21         (h)  Collecting and disseminating solar energy

22  information relevant to the promotion of solar energy

23  applications.

24         (i)  Enlisting the support of persons, civic groups,

25  the solar energy industry, and other organizations to promote

26  and improve solar energy products and services.

27         (4)  The department shall also promote projects that

28  demonstrate viable applications of solar technology which may

29  include, but shall not be limited to: irrigation and stock

30  watering, process heat for dairy and citrus operations,

31  aquaculture, hydroponics, horticulture, waste detoxification,

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 1  and other means of meeting the energy needs of the

 2  agricultural industry.

 3         Section 18.  Subsection (3) of section 288.9015,

 4  Florida Statutes, is repealed:

 5         288.9015  Enterprise Florida, Inc.; purpose; duties.--

 6         (3)  It shall be the responsibility of Enterprise

 7  Florida, Inc., through the Workforce Development Board, to

 8  develop a comprehensive approach to workforce development that

 9  will result in better employment opportunities for the

10  residents of this state. Such comprehensive approach must

11  include:

12         (a)  Creating and maintaining a highly skilled

13  workforce that is capable of responding to rapidly changing

14  technology and diversified market opportunities.

15         (b)  Training, educating, and assisting target

16  populations, such as those who are economically disadvantaged

17  or who participate in the WAGES Program or otherwise receive

18  public assistance to become independent, self-reliant, and

19  self-sufficient. This approach must ensure the effective use

20  of federal, state, local, and private resources in reducing

21  the need for public assistance.

22         Section 19.  Subsection (2) of section 290.00675,

23  Florida Statutes, is created to read:

24         290.00675  Amendment of certain enterprise zone

25  boundaries.--

26         (1)  Notwithstanding any other provisions of law, the

27  Office of Tourism, Trade, and Economic Development may amend

28  the boundaries of an area designated as an enterprise zone in

29  a community having a population of 235,000 persons but less

30  than 260,000, so long as the area does not increase the

31  overall size of the zone by greater than 25 acres and the

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 1  increased area is contiguous to the existing enterprise zone.

 2  The amendment must also be consistent with the limitations

 3  imposed by s. 290.0055 upon establishment of the enterprise

 4  zone.

 5         (2)  Notwithstanding any other provisions of law, the

 6  Office of Tourism, Trade, and Economic Development may approve

 7  requests to amend the boundaries of an area designated as an

 8  enterprise zone in a community having a population of 50,000

 9  persons but less than 60,000, so long as the area does not

10  increase the overall size of the zone by greater than 400

11  acres and the increased area is contiguous to the existing

12  enterprise zone. The amendment must also be consistent with

13  the limitations imposed by s. 290.0055 upon establishment of

14  the enterprise zone. Such request must be submitted to the

15  office of Tourism, Trade, and Economic Development prior to

16  December 31, 2004.

17         Section 20.  Present subsections (15) through (17) of

18  section 626.015, Florida Statutes, are redesignated as

19  subsections (16) through (18), respectively, and a new

20  subsection (15) is added to that section to read:

21         626.015  Definitions.--As used in this part:

22         (15)  "Personal lines agent" means a general lines

23  agent who is limited to transacting business related to

24  property and casualty insurance sold to individuals and

25  families for noncommercial purposes.

26         Section 21.  Subsection (3) is added to section

27  626.022, Florida Statutes, to read:

28         626.022  Scope of part.--

29         (3)  Provisions of this part that apply to general

30  lines agents and applicants also apply to personal lines

31  agents and applicants, except where otherwise provided.

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 1         Section 22.  Subsection (8) is added to section

 2  626.241, Florida Statutes, to read:

 3         626.241  Scope of examination.--

 4         (8)  An examination for licensure as a personal lines

 5  agent shall consist of 100 questions and shall be limited in

 6  scope to the kinds of business transacted under such license.

 7         Section 23.  Subsection (1) of section 626.311, Florida

 8  Statutes, is amended to read:

 9         626.311  Scope of license.--

10         (1)  Except as to personal lines agents and limited

11  licenses, the applicant for license as a general lines agent

12  or customer representative shall qualify for all property,

13  marine, casualty, and surety lines except bail bonds which

14  require a separate license under chapter 648.  The license of

15  a general lines agent may also cover health insurance if

16  health insurance is included in the agent's appointment by an

17  insurer as to which the licensee is also appointed as agent

18  for property or casualty or surety insurance.  The license of

19  a customer representative shall provide, in substance, that it

20  covers all of such classes of insurance that his or her

21  appointing general lines agent or agency is currently so

22  authorized to transact under the general lines agent's license

23  and appointments.  No such license shall be issued limited to

24  particular classes of insurance except for bail bonds which

25  require a separate license under chapter 648 or for personal

26  lines agents. Personal lines agents are limited to transacting

27  business related to property and casualty insurance sold to

28  individuals and families for noncommercial purposes.

29         Section 24.  Section 626.727, Florida Statutes, is

30  amended to read:

31  

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 1         626.727  Scope of this part.--This part applies only to

 2  general lines agents, customer representatives, service

 3  representatives, and managing general agents, all as defined

 4  in s. 626.015. Provisions of this part which apply to general

 5  lines agents and applicants also apply to personal lines

 6  agents and applicants, except where otherwise provided.

 7         Section 25.  Subsection (1) of section 626.732, Florida

 8  Statutes, is amended to read:

 9         626.732  Requirement as to knowledge, experience, or

10  instruction.--

11         (1)  Except as provided in subsection (3), no applicant

12  for a license as a general lines agent or personal lines

13  agent, except for a chartered property and casualty

14  underwriter (CPCU), other than as to a limited license as to

15  baggage and motor vehicle excess liability insurance, credit

16  property insurance, credit insurance, in-transit and storage

17  personal property insurance, or communications equipment

18  property insurance or communication equipment inland marine

19  insurance, shall be qualified or licensed unless within the 4

20  years immediately preceding the date the application for

21  license is filed with the department the applicant has:

22         (a)  Taught or successfully completed classroom courses

23  in insurance, 3 hours of which shall be on the subject matter

24  of ethics, satisfactory to the department at a school,

25  college, or extension division thereof, approved by the

26  department. To qualify for licensure as a personal lines

27  agent, the applicant must complete a total of 52 hours of

28  classroom courses in insurance;

29         (b)  Completed a correspondence course in insurance, 3

30  hours of which shall be on the subject matter of ethics,

31  satisfactory to the department and regularly offered by

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 1  accredited institutions of higher learning in this state and,

 2  except if he or she is applying for a limited license under s.

 3  626.321, for licensure as a general lines agent, has had at

 4  least 6 months of responsible insurance duties as a

 5  substantially full-time bona fide employee in all lines of

 6  property and casualty insurance set forth in the definition of

 7  general lines agent under s. 626.015 or, for licensure as a

 8  personal lines agent, has completed at least 3 months in

 9  responsible insurance duties as a substantially full-time

10  employee in property and casualty insurance sold to

11  individuals and families for noncommercial purposes;

12         (c)  For licensure as a general lines agent, completed

13  at least 1 year in responsible insurance duties as a

14  substantially full-time bona fide employee in all lines of

15  property and casualty insurance, exclusive of aviation and wet

16  marine and transportation insurances but not exclusive of

17  boats of less than 36 feet in length or aircraft not held out

18  for hire, as set forth in the definition of a general lines

19  agent under s. 626.015, without the education requirement

20  mentioned in paragraph (a) or paragraph (b) or, for licensure

21  as a personal lines agent, has completed at least 6 months in

22  responsible insurance duties as a substantially full-time

23  employee in property and casualty insurance sold to

24  individuals and families for noncommercial purposes without

25  the education requirement in paragraph (a) or paragraph (b);

26  or

27         (d)1.  For licensure as a general lines agent,

28  completed at least 1 year of responsible insurance duties as a

29  licensed and appointed customer representative or limited

30  customer representative in commercial or personal lines of

31  property and casualty insurance and 40 hours of classroom

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 1  courses approved by the department covering the areas of

 2  property, casualty, surety, health, and marine insurance; or

 3         2.  For licensure as a personal lines agent, completed

 4  at least 6 months of responsible duties as a licensed and

 5  appointed customer representative or limited customer

 6  representative in property and casualty insurance sold to

 7  individuals and families for noncommercial purposes and 20

 8  hours of classroom courses approved by the department which

 9  are related to property and casualty insurance sold to

10  individuals and families for noncommercial purposes; or

11         (e)1.2.  For licensure as a general lines agent,

12  completed at least 1 year of responsible insurance duties as a

13  licensed and appointed service representative in either

14  commercial or personal lines of property and casualty

15  insurance and 80 hours of classroom courses approved by the

16  department covering the areas of property, casualty, surety,

17  health, and marine insurance; or.

18         2.  For licensure as a personal lines agent, completed

19  at least 6 months of responsible insurance duties as a

20  licensed and appointed service representative in property and

21  casualty insurance sold to individuals and families for

22  noncommercial purposes and 40 hours of classroom courses

23  approved by the department related to property and casualty

24  insurance sold to individuals and families for noncommercial

25  purposes; or 

26         (f)  For licensure as a personal lines agent, completed

27  at least 3 years of responsible duties as a licensed and

28  appointed customer representative in property and casualty

29  insurance sold to individuals and families for noncommercial

30  purposes.

31  

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 1         Section 26.  The Department of Financial Services does

 2  not have to begin issuing licenses to personal lines agents on

 3  the effective date of this act if the department has not

 4  completed the process of incorporating necessary procedures

 5  for issuing personal lines licenses into its licensing

 6  systems.

 7         Section 27.  Subsection (1) of section 626.747, Florida

 8  Statutes, is amended to read:

 9         626.747  Branch agencies.--

10         (1)  Each branch place of business established by an

11  agent or agency, firm, corporation, or association shall be in

12  the active full-time charge of a licensed general lines agent

13  who is appointed to represent one or more insurers.  Any agent

14  or agency, firm, corporation, or association which has

15  established one or more branch places of business shall be

16  required to have at least one licensed general lines agent who

17  is appointed to represent one or more insurers at each

18  location of the agency including its headquarters location.

19         Section 28.  Paragraph (r) is added to subsection (6)

20  of section 627.351, Florida Statutes, to read:

21         627.351  Insurance risk apportionment plans.--

22         (6)  CITIZENS PROPERTY INSURANCE CORPORATION.--

23         (r)  A salaried employee of the corporation who

24  performs policy administration services subsequent to the

25  effectuation of a corporation policy is not required to be

26  licensed as an agent under the provisions of s. 626.112.

27         Section 29.  Except as otherwise expressly provided in

28  this act, this act shall take effect July 1, 2004.

29  

30  

31  

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                            CS/SB 1708

 3                                 

 4  -    Deletes provisions which require 15% of the Community
         Contribution Tax Credit program be set aside for projects
 5       in rural enterprise zones;

 6  -    Amends local government reporting requirements related to
         the Urban Infill and Redevelopment program;
 7  
    -    Amends reporting requirements for OPPAGA's required
 8       report relating to revitalization of Florida's distressed
         communities;
 9  
    -    Provides that proposed amendments to s. 220.13(1)(b),
10       F.S., are effective July 1, 2005;

11  -    Deletes an appropriation of $2.5 million for the Urban
         Infill and Redevelopment Grant Assistance Program;
12  
    -    As it relates to Enterprise Florida, Inc. (EFI), amends
13       ch. 288, F.S., to revise provisions related to the EFI
         board; responsibilities relating to job preparation with
14       the Agency for Workforce Innovation; clarifying the
         requirements for contributions to EFI; clarifying annual
15       reporting requirements; revising hiring provisions;
         deleting provisions that require EFI to assist in the
16       expansion of the solar energy industry;

17  -    Amends ch. 626, F.S., to creates a personal lines agent
         license which would be limited to transactions involving
18       property and casualty insurance for noncommercial
         purposes, such as the sale of residential homeowners and
19       personal automobile insurance; and

20  -    Allows OTTED to approve a request to amend the boundaries
         of an enterprise zone in a community with a population
21       between 50,000 and 60,000 persons, under certain
         conditions.
22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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