HB 0583

CS

CHAMBER ACTION

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

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