HB 0617

CS

CHAMBER ACTION

1	The Committee on Finance & Tax 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 economic stimulus and insurance
7	regulation; amending s. 163.2517, F.S.; encouraging local
8	government grant applicants to involve institutions of
9	higher education as participants in visioning and
10	collaborative planning processes for urban infill and
11	redevelopment areas; amending s. 163.2526, F.S.; requiring
12	local government grant recipients to annually report on
13	certain urban infill and redevelopment plan performance
14	measures; specifying criteria for evaluating performance
15	of local governments in creating urban infill and
16	redevelopment area plans; requiring grant recipients to
17	establish certain measures to evaluate grant impacts on
18	local conditions; providing criteria; requiring the
19	Department of Community Affairs to provide technical
20	assistance to certain grant recipients; requiring the
21	Office of Tourism, Trade, and Economic Development to
22	develop methods and procedures to assist state agencies
23	and local governments in accessing state and federal
24	grants for revitalization programs for distressed urban
25	communities; providing criteria; directing the Office of
26	Program Policy Analysis and Government Accountability to
27	identify and review current state economic development
28	programs relating to distressed communities and provide a
29	report to the Legislature; providing report requirements;
30	amending s. 212.08, F.S.; revising sales price criteria
31	for characterizing business property; conforming
32	provisions to the designated urban job tax credit area
33	revision; amending s. 212.097, F.S.; revising provisions
34	providing for an urban job tax credit program to apply to
35	designated urban job tax credit areas rather than high-
36	crime areas; revising and providing definitions,
37	eligibility criteria, application procedures and
38	requirements, and area characteristics and criteria;
39	authorizing transfer of unused credits under the Urban Job
40	Tax Credit Area Program; specifying use of transferred
41	credits; prohibiting transfer of transferred credits;
42	amending s. 212.098, F.S.; authorizing transfer of unused
43	credits under the Rural Job Tax Credit Program; specifying
44	use of transferred credits; prohibiting transfer of
45	transferred credits; amending s. 220.13, F.S.; providing
46	that amounts included in taxable income by reason of
47	membership or ownership of an interest in a limited
48	liability company engaged in a space flight business may
49	be subtracted from taxable income for purposes of
50	determining adjusted federal income; amending s. 220.1895,
51	F.S.; conforming provisions to amendments relating to
52	designated urban job tax credit area program provisions;
53	removing a historical reference; amending s. 288.095,
54	F.S.; deleting a report requirement relating to the
55	Economic Development Incentives Account; amending s.
56	288.1045, F.S.; extending an expiration date for the tax
57	refund program for qualified defense contractors;
58	preserving the effect of certain tax refund agreements
59	after the expiration date; amending s. 288.106, F.S.;
60	extending an expiration date for the tax refund program
61	for qualified target industry businesses; preserving the
62	effect of certain tax refund agreements after the
63	expiration date; amending s. 288.901, F.S.; revising
64	operational criteria of members of the board of directors
65	of Enterprise Florida, Inc.; amending s. 288.90151, F.S.;
66	revising requirements, criteria, and limitations for
67	returns on investment from activities of Enterprise
68	Florida, Inc.; amending s. 288.903, F.S.; deleting an
69	employment compensation limitation for employees of
70	Enterprise Florida, Inc.; amending s. 288.904, F.S.;
71	revising limitations on contractual powers of the board of
72	directors of Enterprise Florida, Inc.; amending s.
73	288.905, F.S.; revising a pay raise or bonus limitation
74	for certain employees; amending s. 288.9515, F.S.;
75	revising and clarifying powers of Enterprise Florida,
76	Inc., to develop authorized technology development and
77	applications programs; specifying uses of moneys in the
78	Florida Technology Research Investment Fund; providing for
79	payment of certain claims from the fund; revising
80	limitations on revenues from certain investments used for
81	operating expenses associated with the Florida Technology
82	Research Investment Fund and the Florida Small Business
83	Technology Growth Program; requiring Enterprise Florida,
84	Inc., to coordinate with certain organizations to
85	facilitate development of a statewide entrepreneurial
86	growth stimulation strategy; providing criteria; amending
87	s. 288.99, F.S.; conforming provisions to the designated
88	urban job tax credit area revision; amending s. 626.015,
89	F.S.; defining the term "personal lines agent"; amending
90	s. 626.022, F.S.; providing for application to personal
91	lines agents and applicants; amending s. 626.241, F.S.;
92	limiting the scope of personal lines agent examinations
93	for licensure; amending s. 626.311, F.S.; limiting the
94	types of business that may be transacted by personal lines
95	agents; amending s. 626.727, F.S.; providing for
96	application of provisions to personal lines agents and
97	applicants; amending s. 626.732, F.S.; revising certain
98	education and experience requirements for personal lines
99	agents and general lines agents; authorizing the
100	Department of Financial Services to delay issuing personal
101	lines agent licenses under certain circumstances; amending
102	s. 626.747, F.S.; requiring branch agencies to have
103	certain licensed agents at each location; amending s.
104	627.351, F.S.; providing that certain employees of the
105	Citizens Property Insurance Corporation need not be
106	licensed as agents; repealing s. 288.041(3) and (4), F.S.,
107	relating to Enterprise Florida, Inc., and the Department
108	of Commerce, respectively, assisting in expanding the
109	solar energy industry in this state; repealing s.
110	288.8155, F.S., relating to the International Trade Data
111	Resource and Research Center; repealing s. 288.9015(3),
112	F.S., relating to the responsibility of Enterprise
113	Florida, Inc., to develop a comprehensive approach to
114	workforce development; repealing s. 288.9517, F.S.,
115	relating to audits and examinations of the technology
116	development board and programs and entities created by the
117	board; repealing s. 14, ch. 93-187, Laws of Florida,
118	relating to the December 31, 2003, repeal of Enterprise
119	Florida Innovation Partnership provisions; providing
120	effective dates.
121
122	Be It Enacted by the Legislature of the State of Florida:
123
124	Section 1.  Paragraph (c) is added to subsection (2) of
125	section 163.2517, Florida Statutes, to read:
126	163.2517  Designation of urban infill and redevelopment
127	area.--
128	(2)
129	(c)  If a community college, university, or other
130	institution of higher education is within the geographical
131	vicinity, local government grant applicants are encouraged to
132	involve such institutions in the visioning and collaborative
133	planning process and to enter into agreements specifying that
134	the institution will contribute resources and expertise to the
135	redevelopment effort.
136	Section 2.  Section 163.2526, Florida Statutes, is amended
137	to read:
138	163.2526  Review and evaluation.--
139	(1)  Before the 2004 Regular Session of the Legislature,
140	the Office of Program Policy Analysis and Government
141	Accountability shall perform a review and evaluation of ss.
142	163.2511-163.2526, including the financial incentives listed in
143	s. 163.2520. The report must evaluate the effectiveness of the
144	designation of urban infill and redevelopment areas in
145	stimulating urban infill and redevelopment and strengthening the
146	urban core. A report of the findings and recommendations of the
147	Office of Program Policy Analysis and Government Accountability
148	shall be submitted to the President of the Senate and the
149	Speaker of the House of Representatives before the 2004 Regular
150	Session of the Legislature.
151	(2)  Subsequent to June 1, 2004, local governments awarded
152	grants pursuant to s. 163.2523 shall make annual reports to the
153	Department of Community Affairs on performance measures
154	identified in the urban infill and redevelopment plan pursuant
155	to s. 163.2517(3)(n).
156	(a)  Local governments that receive planning grants shall
157	report their progress in creating urban infill and redevelopment
158	plans. The report shall include:
159	1.  A description of the redevelopment objectives of the
160	area.
161	2.  Information on stakeholder involvement in creating
162	plans.
163	3.  Specification of whether goals of the plan are
164	consistent with community input they received.
165	4.  Specification of whether plans were adopted by local
166	governments.
167	5.  Identification of local incentives which were approved
168	to encourage private investment.
169	(b)  Local governments that receive implementation grants
170	shall report:
171	1.  Progress in implementing activities specified in their
172	urban infill and redevelopment plans.
173	2.  Changes in economic and demographic indicators over
174	time and how these changes compare to objectives specified in
175	their urban infill and redevelopment plans.
176	3.  Information on the types and dollar amounts of
177	financial incentives used to encourage private investment in
178	designated areas.
179	(c)  Grant recipients shall establish appropriate measures
180	such as inputs, outputs, and outcomes and standards for
181	evaluating the impact of the grants on local conditions. These
182	measures and standards shall be directly linked to goals for
183	redeveloping an area specified in the grant recipient's urban
184	infill and redevelopment plans pursuant to s. 163.2517. Grant
185	recipients shall also compile baseline data on conditions
186	existing prior to an area's designation that can be used to
187	assess changes in conditions over time. Depending on the goals
188	of a grant recipient's urban infill and redevelopment plan,
189	baseline data may include, but not be limited to, property tax
190	revenues, property tax values, net job creation, and changes in
191	characteristics of resident population to include employment
192	rates, high school graduation rates, homeownership rates, and
193	median income levels.
194	(3)  The Department of Community Affairs shall provide
195	technical assistance to planning grant and implementation grant
196	recipients. Such assistance shall include assisting grant
197	recipients in creating appropriate measures such as inputs,
198	outputs, outcomes and standards, and uniform data collection
199	procedures to ensure the reliability and consistency of data
200	that will be used to evaluate performance. The department shall
201	also adopt rules to specify reporting requirements for grant
202	recipients.
203	Section 3.  The Office of Tourism, Trade, and Economic
204	Development of the Executive Office of the Governor shall
205	develop methods and procedures to assist state agencies and
206	local governments to access state and federal grants for
207	revitalization programs for distressed urban communities. Such
208	assistance shall include, but not be limited to: developing and
209	maintaining a current listing of available federal grants;
210	assigning appropriate staff as contacts for information on each
211	grant; and providing technical assistance necessary for local
212	governments to submit completed grant proposals. Such methods
213	may include the expansion of the existing rural resource
214	directory database to include grants available to urban areas
215	and designation of one or more state entities to provide such
216	assistance as necessary.
217	Section 4.  The Office of Program Policy Analysis and
218	Government Accountability shall, with the assistance of other
219	legislative committee and state agency staff as appropriate,
220	identify and review current state economic development programs
221	created by law relative to revitalization of distressed
222	communities in this state and provide a report to the President
223	of the Senate and the Speaker of the House of Representatives by
224	January 31, 2005. Specifically, the report shall:
225	(1)  Identify and profile state economic development
226	programs, including the use of incentives, to be included in the
227	review.
228	(2)  Through site visits, review how local governments use
229	a state economic development program or a combination of state
230	economic development programs to help revitalize distressed
231	communities.
232	(3)  Consider in its fieldwork municipal or county
233	jurisdictions with populations that are small, meaning less than
234	30,000 in population, medium, meaning between 30,000 and 75,000
235	in population, and large, meaning more than 75,000 in
236	population.
237	(4)  Identify best practices contributing to the successful
238	implementation of these programs.
239	(5)  Identify state practices that facilitate or impede the
240	use of these programs.
241	Section 5.  Paragraphs (h) and (o) of subsection (5) of
242	section 212.08, Florida Statutes, are amended to read:
243	212.08  Sales, rental, use, consumption, distribution, and
244	storage tax; specified exemptions.--The sale at retail, the
245	rental, the use, the consumption, the distribution, and the
246	storage to be used or consumed in this state of the following
247	are hereby specifically exempt from the tax imposed by this
248	chapter.
249	(5)  EXEMPTIONS; ACCOUNT OF USE.--
250	(h)  Business property used in an enterprise zone.--
251	1.  Business property purchased for use by businesses
252	located in an enterprise zone which is subsequently used in an
253	enterprise zone shall be exempt from the tax imposed by this
254	chapter. This exemption inures to the business only through a
255	refund of previously paid taxes. A refund shall be authorized
256	upon an affirmative showing by the taxpayer to the satisfaction
257	of the department that the requirements of this paragraph have
258	been met.
259	2.  To receive a refund, the business must file under oath
260	with the governing body or enterprise zone development agency
261	having jurisdiction over the enterprise zone where the business
262	is located, as applicable, an application which includes:
263	a.  The name and address of the business claiming the
264	refund.
265	b.  The identifying number assigned pursuant to s. 290.0065
266	to the enterprise zone in which the business is located.
267	c.  A specific description of the property for which a
268	refund is sought, including its serial number or other permanent
269	identification number.
270	d.  The location of the property.
271	e.  The sales invoice or other proof of purchase of the
272	property, showing the amount of sales tax paid, the date of
273	purchase, and the name and address of the sales tax dealer from
274	whom the property was purchased.
275	f.  Whether the business is a small business as defined by
276	s. 288.703(1).
277	g.  If applicable, the name and address of each permanent
278	employee of the business, including, for each employee who is a
279	resident of an enterprise zone, the identifying number assigned
280	pursuant to s. 290.0065 to the enterprise zone in which the
281	employee resides.
282	3.  Within 10 working days after receipt of an application,
283	the governing body or enterprise zone development agency shall
284	review the application to determine if it contains all the
285	information required pursuant to subparagraph 2. and meets the
286	criteria set out in this paragraph. The governing body or agency
287	shall certify all applications that contain the information
288	required pursuant to subparagraph 2. and meet the criteria set
289	out in this paragraph as eligible to receive a refund. If
290	applicable, the governing body or agency shall also certify if
291	20 percent of the employees of the business are residents of an
292	enterprise zone, excluding temporary and part-time employees.
293	The certification shall be in writing, and a copy of the
294	certification shall be transmitted to the executive director of
295	the Department of Revenue. The business shall be responsible for
296	forwarding a certified application to the department within the
297	time specified in subparagraph 4.
298	4.  An application for a refund pursuant to this paragraph
299	must be submitted to the department within 6 months after the
300	tax is due on the business property that is purchased.
301	5.  The provisions of s. 212.095 do not apply to any refund
302	application made pursuant to this paragraph. The amount refunded
303	on purchases of business property under this paragraph shall be
304	the lesser of 97 percent of the sales tax paid on such business
305	property or $5,000, or, if no less than 20 percent of the
306	employees of the business are residents of an enterprise zone,
307	excluding temporary and part-time employees, the amount refunded
308	on purchases of business property under this paragraph shall be
309	the lesser of 97 percent of the sales tax paid on such business
310	property or $10,000. A refund approved pursuant to this
311	paragraph shall be made within 30 days of formal approval by the
312	department of the application for the refund. No refund shall be
313	granted under this paragraph unless the amount to be refunded
314	exceeds $100 in sales tax paid on purchases made within a 60-day
315	time period.
316	6.  The department shall adopt rules governing the manner
317	and form of refund applications and may establish guidelines as
318	to the requisites for an affirmative showing of qualification
319	for exemption under this paragraph.
320	7.  If the department determines that the business property
321	is used outside an enterprise zone within 3 years from the date
322	of purchase, the amount of taxes refunded to the business
323	purchasing such business property shall immediately be due and
324	payable to the department by the business, together with the
325	appropriate interest and penalty, computed from the date of
326	purchase, in the manner provided by this chapter.
327	Notwithstanding this subparagraph, business property used
328	exclusively in:
329	a.  Licensed commercial fishing vessels,
330	b.  Fishing guide boats, or
331	c.  Ecotourism guide boats
332
333	that leave and return to a fixed location within an area
334	designated under s. 370.28 are eligible for the exemption
335	provided under this paragraph if all requirements of this
336	paragraph are met. Such vessels and boats must be owned by a
337	business that is eligible to receive the exemption provided
338	under this paragraph. This exemption does not apply to the
339	purchase of a vessel or boat.
340	8.  The department shall deduct an amount equal to 10
341	percent of each refund granted under the provisions of this
342	paragraph from the amount transferred into the Local Government
343	Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
344	for the county area in which the business property is located
345	and shall transfer that amount to the General Revenue Fund.
346	9.  For the purposes of this exemption, "business property"
347	means new or used property defined as "recovery property" in s.
348	168(c) of the Internal Revenue Code of 1954, as amended, except:
349	a.  Property classified as 3-year property under s.
350	168(c)(2)(A) of the Internal Revenue Code of 1954, as amended.;
351	b.  Industrial machinery and equipment as defined in sub-
352	subparagraph (b)6.a. and eligible for exemption under paragraph
353	(b).;
354	c.  Building materials as defined in sub-subparagraph
355	(g)8.a.; and
356	d.  Business property having a sales price of under $500
357	$5,000 per unit.
358	10.  The provisions of this paragraph shall expire and be
359	void on December 31, 2005.
360	(o)  Building materials in redevelopment projects.--
361	1.  As used in this paragraph, the term:
362	a.  "Building materials" means tangible personal property
363	that becomes a component part of a housing project or a mixed-
364	use project.
365	b.  "Housing project" means the conversion of an existing
366	manufacturing or industrial building to housing units in a
367	designated an urban job tax credit high-crime area, enterprise
368	zone, empowerment zone, Front Porch Community, designated
369	brownfield area, or urban infill area and in which the developer
370	agrees to set aside at least 20 percent of the housing units in
371	the project for low-income and moderate-income persons or the
372	construction in a designated brownfield area of affordable
373	housing for persons described in s. 420.0004(9), (10), or (14),
374	or in s. 159.603(7).
375	c.  "Mixed-use project" means the conversion of an existing
376	manufacturing or industrial building to mixed-use units that
377	include artists' studios, art and entertainment services, or
378	other compatible uses. A mixed-use project must be located in a
379	designated an urban job tax credit high-crime area, enterprise
380	zone, empowerment zone, Front Porch Community, designated
381	brownfield area, or urban infill area, and the developer must
382	agree to set aside at least 20 percent of the square footage of
383	the project for low-income and moderate-income housing.
384	d.  "Substantially completed" has the same meaning as
385	provided in s. 192.042(1).
386	2.  Building materials used in the construction of a
387	housing project or mixed-use project are exempt from the tax
388	imposed by this chapter upon an affirmative showing to the
389	satisfaction of the department that the requirements of this
390	paragraph have been met. This exemption inures to the owner
391	through a refund of previously paid taxes. To receive this
392	refund, the owner must file an application under oath with the
393	department which includes:
394	a.  The name and address of the owner.
395	b.  The address and assessment roll parcel number of the
396	project for which a refund is sought.
397	c.  A copy of the building permit issued for the project.
398	d.  A certification by the local building code inspector
399	that the project is substantially completed.
400	e.  A sworn statement, under penalty of perjury, from the
401	general contractor licensed in this state with whom the owner
402	contracted to construct the project, which statement lists the
403	building materials used in the construction of the project and
404	the actual cost thereof, and the amount of sales tax paid on
405	these materials. If a general contractor was not used, the owner
406	shall provide this information in a sworn statement, under
407	penalty of perjury. Copies of invoices evidencing payment of
408	sales tax must be attached to the sworn statement.
409	3.  An application for a refund under this paragraph must
410	be submitted to the department within 6 months after the date
411	the project is deemed to be substantially completed by the local
412	building code inspector. Within 30 working days after receipt of
413	the application, the department shall determine if it meets the
414	requirements of this paragraph. A refund approved pursuant to
415	this paragraph shall be made within 30 days after formal
416	approval of the application by the department. The provisions of
417	s. 212.095 do not apply to any refund application made under
418	this paragraph.
419	4.  The department shall establish by rule an application
420	form and criteria for establishing eligibility for exemption
421	under this paragraph.
422	5.  The exemption shall apply to purchases of materials on
423	or after July 1, 2000.
424	Section 6.  Section 212.097, Florida Statutes, is amended
425	to read:
426	212.097  Designated Urban High-Crime Area Job Tax Credit
427	Area Program.--
428	(1)  As used in this section, the term:
429	(a)  "Eligible business" means any sole proprietorship,
430	firm, partnership, or corporation that is located in a
431	designated urban job tax credit area qualified county and is
432	predominantly engaged in, or is headquarters for a business
433	predominantly engaged in, activities usually provided for
434	consideration by firms classified within the following standard
435	industrial classifications: SIC 01-SIC 09 (agriculture,
436	forestry, and fishing); SIC 20-SIC 39 (manufacturing); SIC 52-
437	SIC 57 and SIC 59 (retail); SIC 422 (public warehousing and
438	storage); SIC 70 (hotels and other lodging places); SIC 7391
439	(research and development); SIC 781 (motion picture production
440	and allied services); SIC 7992 (public golf courses); and SIC
441	7996 (amusement parks); and a targeted industry eligible for the
442	qualified target industry business tax refund under s. 288.106.
443	A call center or similar customer service operation that
444	services a multistate market or international market is also an
445	eligible business. In addition, the Office of Tourism, Trade,
446	and Economic Development may, as part of its final budget
447	request submitted pursuant to s. 216.023, recommend additions to
448	or deletions from the list of standard industrial
449	classifications used to determine an eligible business, and the
450	Legislature may implement such recommendations. Excluded from
451	eligible receipts are receipts from retail sales, except such
452	receipts for SIC 52-SIC 57 and SIC 59 (retail) hotels and other
453	lodging places classified in SIC 70, public golf courses in SIC
454	7992, and amusement parks in SIC 7996. For purposes of this
455	paragraph, the term "predominantly" means that more than 50
456	percent of the business's gross receipts from all sources is
457	generated by those activities usually provided for consideration
458	by firms in the specified standard industrial classification.
459	The determination of whether the business is located in a
460	designated urban job tax credit qualified high-crime area and
461	the tier ranking of that area must be based on the date of
462	application for the credit under this section. Commonly owned
463	and controlled entities are to be considered a single business
464	entity.
465	(b)  "Qualified employee" means any employee of an eligible
466	business who performs duties in connection with the operations
467	of the business on a regular, full-time basis for an average of
468	at least 36 hours per week for at least 3 months within the
469	designated urban job tax credit qualified high-crime area in
470	which the eligible business is located. An owner or partner of
471	the eligible business is not a qualified employee. The term also
472	includes an employee leased from an employee leasing company
473	licensed under chapter 468, if such employee has been
474	continuously leased to the employer for an average of at least
475	36 hours per week for more than 6 months.
476	(c)  "New business" means any eligible business first
477	beginning operation on a site in a designated urban job tax
478	credit qualified high-crime area and clearly separate from any
479	other commercial or business operation of the business entity
480	within a designated urban job tax credit qualified high-crime
481	area. A business entity that operated an eligible business
482	within a designated urban job tax credit qualified high-crime
483	area within the 48 months before the period provided for
484	application by subsection (2) is not considered a new business.
485	(d)  "Existing business" means any eligible business that
486	does not meet the criteria for a new business.
487	(e)  "Designated urban job tax credit Qualified high-crime
488	area" means an area selected by the Office of Tourism, Trade,
489	and Economic Development in the following manner: every third
490	year, the office shall rank and tier those areas nominated under
491	subsection (7), according to the highest level of distress
492	experienced in the categories enumerated under subsection (7).
493	The Office of Tourism, Trade, and Economic Development shall
494	designate the 30 highest-distress-profile urban areas as
495	eligible participants under the designated urban job tax credit
496	area program. following prioritized criteria:
497	1.  Highest arrest rates within the geographic area for
498	violent crime and for such other crimes as drug sale, drug
499	possession, prostitution, vandalism, and civil disturbances;
500	2.  Highest reported crime volume and rate of specific
501	property crimes such as business and residential burglary, motor
502	vehicle theft, and vandalism;
503	3.  Highest percentage of reported index crimes that are
504	violent in nature;
505	4.  Highest overall index crime volume for the area; and
506	5.  Highest overall index crime rate for the geographic
507	area.
508
509	Tier-one areas are ranked 1 through 5 and represent the highest
510	crime areas according to this ranking. Tier-two areas are ranked
511	6 through 10 according to this ranking. Tier-three areas are
512	ranked 11 through 15. Notwithstanding this definition,
513	"designated urban job tax credit qualified high-crime area" also
514	means an area that has been designated as a federal Empowerment
515	Zone pursuant to the Taxpayer Relief Act of 1997 or the
516	Community Tax Relief Act of 2000. Such a designated area is
517	ranked in tier three until the areas are reevaluated by the
518	Office of Tourism, Trade, and Economic Development.
519	(f)  "Central business district" means an area comprised of
520	at least 80 percent commercial and government buildings and
521	properties; characterized by a high concentration of retail
522	businesses, service businesses, offices, theaters, and hotels;
523	and located in a Department of Transportation urban service
524	area.
525	(g)  "Urban" means a densely populated nonrural area
526	located within an urban county which consists of a cluster of
527	one or more census blocks, each of which has a population
528	density of at least 400 people per square mile, or an area
529	defined by the most recent United States Census as urban.
530	(2)  A new eligible business may apply for a tax credit
531	under this subsection once at any time during its first year of
532	operation. A new eligible business in a designated urban job tax
533	credit tier-one qualified high-crime area which has at least 10
534	qualified employees on the date of application shall receive a
535	$1,500 tax credit for each such employee. A new eligible
536	business in a tier-two qualified high-crime area which has at
537	least 20 qualified employees on the date of application shall
538	receive a $1,000 tax credit for each such employee. A new
539	eligible business in a tier-three qualified high-crime area
540	which has at least 30 qualified employees on the date of
541	application shall receive a $500 tax credit for each such
542	employee.
543	(3)  An existing eligible business may apply for a tax
544	credit under this subsection at any time it is entitled to such
545	credit, except as restricted by this subsection. An existing
546	eligible business in a designated urban job tax credit tier-one
547	qualified high-crime area which on the date of application has
548	at least 5 more qualified employees than it had 1 year prior to
549	its date of application shall receive a $1,500 tax credit for
550	each such additional employee. An existing eligible business in
551	a tier-two qualified high-crime area which on the date of
552	application has at least 10 more qualified employees than it had
553	1 year prior to its date of application shall receive a $1,000
554	credit for each such additional employee. An existing business
555	in a tier-three qualified high-crime area which on the date of
556	application has at least 15 more qualified employees than it had
557	1 year prior to its date of application shall receive a $500 tax
558	credit for each such additional employee. An existing eligible
559	business may apply for the credit under this subsection no more
560	than once in any 12-month period. Any existing eligible business
561	that received a credit under subsection (2) may not apply for
562	the credit under this subsection sooner than 12 months after the
563	application date for the credit under subsection (2).
564	(4)  For any new eligible business receiving a credit
565	pursuant to subsection (2), an additional $500 credit shall be
566	provided for any qualified employee who is a welfare transition
567	program participant. For any existing eligible business
568	receiving a credit pursuant to subsection (3), an additional
569	$500 credit shall be provided for any qualified employee who is
570	a welfare transition program participant. Such employee must be
571	employed on the application date and have been employed less
572	than 1 year. This credit shall be in addition to other credits
573	pursuant to this section regardless of the tier-level of the
574	high-crime area. Appropriate documentation concerning the
575	eligibility of an employee for this credit must be submitted as
576	determined by the department.
577	(5)  To be eligible for a tax credit under subsection (3),
578	the number of qualified employees employed 1 year prior to the
579	application date must be no lower than the number of qualified
580	employees on the application date on which a credit under this
581	section was based for any previous application, including an
582	application under subsection (2).
583	(6)  Any county or municipality, or a county and one or
584	more municipalities together, may apply to the Office of
585	Tourism, Trade, and Economic Development for the designation of
586	an area as a designated urban job tax credit high-crime area
587	after the adoption by the governing body or bodies of a
588	resolution that:
589	(a)  Finds that an urban a high-crime area exists in such
590	county or municipality, or in both the county and one or more
591	municipalities, which chronically exhibits extreme and
592	unacceptable levels of poverty, unemployment, physical
593	deterioration, and economic disinvestment;
594	(b)  Determines that the rehabilitation, conservation, or
595	redevelopment, or a combination thereof, of such an urban a
596	high-crime area is necessary in the interest of the health,
597	safety, and welfare of the residents of such county or
598	municipality, or such county and one or more municipalities; and
599	(c)  Determines that the revitalization of such an urban a
600	high-crime area can occur if the public sector or private sector
601	can be induced to invest its own resources in productive
602	enterprises that build or rebuild the economic viability of the
603	area.
604	(7)  The governing body of the entity nominating the area
605	shall demonstrate provide to the Office of Tourism, Trade, and
606	Economic Development that the area meets the following:
607	(a)  Income characteristics:
608	1.  Forty percent of area residents are earning wages on an
609	annual basis that are equal to or less than the annual wage of a
610	person who is earning minimum wage; or
611	2.  More than 20 percent of residents or families live
612	below the federal standard of poverty for individuals or a
613	family of four. The overall index crime rate for the geographic
614	area;
615	(b)  Education characteristics:
616	1.  Has a high school dropout rate higher than the county
617	average; or
618	2.  Has a high school graduation rate lower than the state
619	average. The overall index crime volume for the area;
620	(c)  Workforce and employment characteristics:
621	1.  Has an unemployment rate at least 3 percentage points
622	higher than the state's unemployment rate;
623	2.  More than 50 percent of families subject to the
624	welfare-to-work transition time limit are either within 6 months
625	of the time limit or are receiving cash assistance under a
626	period of hardship extension to the time limit; or
627	3.  Is identified as a labor surplus area using the
628	criteria established by the United States Department of Labor's
629	Employment and Training Administration. The percentage of
630	reported index crimes that are violent in nature;
631	(d)  Crime characteristics:
632	1.  Has an arrest rate higher than the state's average rate
633	for such crimes as drug sale, drug possession, prostitution,
634	vandalism, and civil disturbances, as recorded by the total
635	crime index of the Department of Law Enforcement; or
636	2.  Ranks in the top 30 percent of zip codes with reported
637	crimes that are violent in nature. The reported crime volume and
638	rate of specific property crimes such as business and
639	residential burglary, motor vehicle theft, and vandalism; and
640	(e)  Residential and commercial property-related
641	characteristics:
642	1.  Fifty percent or more of area residents rent; or
643	2.a.  Property values are within the lower 50 percent of
644	the county's assessed property values;
645	b.  More than 5 percent of area homes, apartments, or
646	buildings are abandoned, have been condemned within the previous
647	24 months, or have a greater number of violations of the Florida
648	Building Code than recorded in the remainder of the county or
649	municipality; or
650	c.  Tax or special assessment delinquencies exceed the fair
651	value of the land The arrest rates within the geographic area
652	for violent crime and for such other crimes as drug sale, drug
653	possession, prostitution, disorderly conduct, vandalism, and
654	other public-order offenses.
655	(8)  A municipality, or a county and one or more
656	municipalities together, may not nominate more than one urban
657	high-crime area. However, any county as defined by s. 125.011(1)
658	may nominate no more than three urban high-crime areas.
659	(9)(a)  An area nominated by a county or municipality, or a
660	county and one or more municipalities together, for designation
661	as a designated urban job tax credit high-crime area shall be
662	eligible only if it meets the following criteria:
663	1.(a)  The selected area does not exceed 20 square miles
664	and either has a continuous boundary or consists of not more
665	than three noncontiguous parcels.;
666	2.(b)  The selected area does not exceed the following
667	mileage limitation:
668	a.1.  For areas communities having a total population of
669	150,000 persons or more, the selected area does not exceed 20
670	square miles and is within 10 miles of the central business
671	district of a city.
672	b.2.  For areas communities having a total population of
673	50,000 persons or more, but fewer than 150,000 persons, the
674	selected area does not exceed 10 square miles and is within 7.5
675	miles of the central business district of a city.
676	c.3.  For areas communities having a total population of
677	20,000 persons or more, but fewer than 50,000 persons, the
678	selected area does not exceed 5 square miles and is within 5
679	miles of the central business district of a city.
680	d.4.  For areas communities having a total population of
681	fewer than 20,000 persons, the selected area does not exceed 3
682	square miles and is within 3 miles of the central business
683	district of a city.
684	(b)  A designated urban job tax credit area may not include
685	any portion of a central business district, unless the poverty
686	rate for each census geographic block group in the district is
687	not less than 30 percent.
688	(10)(a)  In order to claim this credit, an eligible
689	business must file under oath with the Office of Tourism, Trade,
690	and Economic Development a statement that includes the name and
691	address of the eligible business and any other information that
692	is required to process the application.
693	(b)  Within 30 working days after receipt of an application
694	for credit, the Office of Tourism, Trade, and Economic
695	Development shall review the application to determine whether it
696	contains all the information required by this subsection and
697	meets the criteria set out in this section. Subject to the
698	provisions of paragraph (c), the Office of Tourism, Trade, and
699	Economic Development shall approve all applications that contain
700	the information required by this subsection and meet the
701	criteria set out in this section as eligible to receive a
702	credit.
703	(c)  The maximum credit amount that may be approved during
704	any calendar year is $5 million, of which $1 million shall be
705	exclusively reserved for tier-one areas. The Department of
706	Revenue, in conjunction with the Office of Tourism, Trade, and
707	Economic Development, shall notify the governing bodies in areas
708	designated under this section as urban high-crime areas when the
709	$5 million maximum amount has been reached. Applications must be
710	considered for approval in the order in which they are received
711	without regard to whether the credit is for a new or existing
712	business. This limitation applies to the value of the credit as
713	contained in approved applications. Approved credits may be
714	taken in the time and manner allowed pursuant to this section.
715	(11)  If the application is insufficient to support the
716	credit authorized in this section, the Office of Tourism, Trade,
717	and Economic Development shall deny the credit and notify the
718	business of that fact. The business may reapply for this credit
719	within 3 months after such notification.
720	(12)  If the credit under this section is greater than can
721	be taken on a single tax return, excess amounts may be taken as
722	credits on any tax return submitted within 12 months after the
723	approval of the application by the department.
724	(13)  It is the responsibility of each business to
725	affirmatively demonstrate to the satisfaction of the Department
726	of Revenue that it meets the requirements of this section.
727	(14)  Any person who fraudulently claims this credit is
728	liable for repayment of the credit plus a mandatory penalty of
729	100 percent of the credit and is guilty of a misdemeanor of the
730	second degree, punishable as provided in s. 775.082 or s.
731	775.083.
732	(15)  A corporation may take the credit under this section
733	against its corporate income tax liability, as provided in s.
734	220.1895. However, a corporation that applies its job tax credit
735	against the tax imposed by chapter 220 may not receive the
736	credit provided for in this section. A credit may be taken
737	against only one tax.
738	(16)  An eligible business may transfer any unused credit
739	in whole or in units of no less than 25 percent of the remaining
740	credit. The entity acquiring such credit may use it in the same
741	manner and with the same limitation as described in this
742	section. Such transferred credits may not be transferred again
743	although they may succeed to a surviving or acquiring entity
744	subject to the same conditions and limitations described in this
745	section.
746	(17)(16)  The department shall adopt rules governing the
747	manner and form of applications for credit or transfers of
748	credit and may establish guidelines concerning the requisites
749	for an affirmative showing of qualification for the credit under
750	this section.
751	Section 7.  Subsection (12) of section 212.098, Florida
752	Statutes, is renumbered as subsection (13) and a new subsection
753	(12) is added to said section to read:
754	212.098  Rural Job Tax Credit Program.--
755	(12)  An eligible business may transfer any unused credit
756	in whole or in units of not less than 25 percent of the
757	remaining credit. The entity acquiring such credit may use it in
758	the same manner and with the same limitation as described in
759	this section. Such transferred credits may not be transferred
760	again although they may succeed to a surviving or acquiring
761	entity subject to the same conditions and limitations described
762	in this section.
763	Section 8.  Effective July 1, 2005, paragraph (b) of
764	subsection (1) of section 220.13, Florida Statutes, is amended
765	to read:
766	220.13  "Adjusted federal income" defined.--
767	(1)  The term "adjusted federal income" means an amount
768	equal to the taxpayer's taxable income as defined in subsection
769	(2), or such taxable income of more than one taxpayer as
770	provided in s. 220.131, for the taxable year, adjusted as
771	follows:
772	(b)  Subtractions.--
773	1.  There shall be subtracted from such taxable income:
774	a.  The net operating loss deduction allowable for federal
775	income tax purposes under s. 172 of the Internal Revenue Code
776	for the taxable year.,
777	b.  The net capital loss allowable for federal income tax
778	purposes under s. 1212 of the Internal Revenue Code for the
779	taxable year.,
780	c.  The excess charitable contribution deduction allowable
781	for federal income tax purposes under s. 170(d)(2) of the
782	Internal Revenue Code for the taxable year., and
783	d.  The excess contributions deductions allowable for
784	federal income tax purposes under s. 404 of the Internal Revenue
785	Code for the taxable year.
786	e.  All amounts included in taxable income by reason of
787	membership or ownership of an interest in a limited liability
788	company that:
789	(I)  Came into existence before January 1, 2004.
790	(II)  Is classified as a partnership for federal income tax
791	purposes.
792	(III)  Has at least 3,500 full-time employees in this state
793	throughout the taxable year.
794	(IV)  Is, in this state, engaged primarily in a space
795	flight business as defined in s. 212.031(1)(a)13.
796
797	However, a net operating loss and a capital loss shall never be
798	carried back as a deduction to a prior taxable year, but all
799	deductions attributable to such losses shall be deemed net
800	operating loss carryovers and capital loss carryovers,
801	respectively, and treated in the same manner, to the same
802	extent, and for the same time periods as are prescribed for such
803	carryovers in ss. 172 and 1212, respectively, of the Internal
804	Revenue Code.
805	2.  There shall be subtracted from such taxable income any
806	amount to the extent included therein the following:
807	a.  Dividends treated as received from sources without the
808	United States, as determined under s. 862 of the Internal
809	Revenue Code.
810	b.  All amounts included in taxable income under s. 78 or
811	s. 951 of the Internal Revenue Code.
812
813	However, as to any amount subtracted under this subparagraph,
814	there shall be added to such taxable income all expenses
815	deducted on the taxpayer's return for the taxable year which are
816	attributable, directly or indirectly, to such subtracted amount.
817	Further, no amount shall be subtracted with respect to dividends
818	paid or deemed paid by a Domestic International Sales
819	Corporation.
820	3.  In computing "adjusted federal income" for taxable
821	years beginning after December 31, 1976, there shall be allowed
822	as a deduction the amount of wages and salaries paid or incurred
823	within this state for the taxable year for which no deduction is
824	allowed pursuant to s. 280C(a) of the Internal Revenue Code
825	(relating to credit for employment of certain new employees).
826	4.  There shall be subtracted from such taxable income any
827	amount of nonbusiness income included therein.
828	5.  There shall be subtracted any amount of taxes of
829	foreign countries allowable as credits for taxable years
830	beginning on or after September 1, 1985, under s. 901 of the
831	Internal Revenue Code to any corporation which derived less than
832	20 percent of its gross income or loss for its taxable year
833	ended in 1984 from sources within the United States, as
834	described in s. 861(a)(2)(A) of the Internal Revenue Code, not
835	including credits allowed under ss. 902 and 960 of the Internal
836	Revenue Code, withholding taxes on dividends within the meaning
837	of sub-subparagraph 2.a., and withholding taxes on royalties,
838	interest, technical service fees, and capital gains.
839	6.  Notwithstanding any other provision of this code,
840	except with respect to amounts subtracted pursuant to
841	subparagraphs 1. and 3., any increment of any apportionment
842	factor which is directly related to an increment of gross
843	receipts or income which is deducted, subtracted, or otherwise
844	excluded in determining adjusted federal income shall be
845	excluded from both the numerator and denominator of such
846	apportionment factor. Further, all valuations made for
847	apportionment factor purposes shall be made on a basis
848	consistent with the taxpayer's method of accounting for federal
849	income tax purposes.
850	Section 9.  Section 220.1895, Florida Statutes, is amended
851	to read:
852	220.1895  Rural Job Tax Credit and Designated Urban High-
853	Crime Area Job Tax Credit Area.--There shall be allowed a credit
854	against the tax imposed by this chapter amounts approved by the
855	Office of Tourism, Trade, and Economic Development pursuant to
856	the Rural Job Tax Credit Program in s. 212.098 and the
857	Designated Urban High-Crime Area Job Tax Credit Area Program in
858	s. 212.097. A corporation that uses its credit against the tax
859	imposed by this chapter may not take the credit against the tax
860	imposed by chapter 212. If any credit granted under this section
861	is not fully used in the first year for which it becomes
862	available, the unused amount may be carried forward for a period
863	not to exceed 5 years. The carryover may be used in a subsequent
864	year when the tax imposed by this chapter for such year exceeds
865	the credit for such year under this section after applying the
866	other credits and unused credit carryovers in the order provided
867	in s. 220.02(8). The Office of Tourism, Trade, and Economic
868	Development shall conduct a review of the Urban High-Crime Area
869	Job Tax Credit and the Rural Job Tax Credit Program and submit
870	its report to the Governor, the President of the Senate, and the
871	Speaker of the House of Representatives by February 1, 2000.
872	Section 10.  Paragraph (c) of subsection (3) of section
873	288.095, Florida Statutes, is amended to read:
874	288.095  Economic Development Trust Fund.--
875	(3)
876	(c)  By December 31 of each year, Enterprise Florida, Inc.,
877	shall submit a complete and detailed report to the Governor, the
878	President of the Senate, the Speaker of the House of
879	Representatives, and the director of the Office of Tourism,
880	Trade, and Economic Development of all applications received,
881	recommendations made to the Office of Tourism, Trade, and
882	Economic Development, final decisions issued, tax refund
883	agreements executed, and tax refunds paid or other payments made
884	under all programs funded out of the Economic Development
885	Incentives Account, including analyses of benefits and costs,
886	types of projects supported, and employment and investment
887	created. Enterprise Florida, Inc., shall also include a separate
888	analysis of the impact of such tax refunds on state enterprise
889	zones designated pursuant to s. 290.0065, rural communities,
890	brownfield areas, and distressed urban communities. The report
891	must discuss whether the authority and moneys appropriated by
892	the Legislature to the Economic Development Incentives Account
893	were managed and expended in a prudent, fiducially sound manner.
894	The Office of Tourism, Trade, and Economic Development shall
895	assist Enterprise Florida, Inc., in the collection of data
896	related to business performance and incentive payments.
897	Section 11.  Subsection (7) of section 288.1045, Florida
898	Statutes, is amended to read:
899	288.1045  Qualified defense contractor tax refund
900	program.--
901	(7)  EXPIRATION.--An applicant may not be certified as
902	qualified under this section after June 30, 2009 2004. However,
903	a tax refund agreement in effect on that date shall continue in
904	effect in accordance with the terms of the agreement.
905	Section 12.  Subsection (7) of section 288.106, Florida
906	Statutes, is amended to read:
907	288.106  Tax refund program for qualified target industry
908	businesses.--
909	(7)  EXPIRATION.--This section expires June 30, 2009 2004.
910	However, a tax refund agreement in effect on that date shall
911	continue in effect in accordance with the terms of the
912	agreement.
913	Section 13.  Subsections (7), (8), and (11) of section
914	288.901, Florida Statutes, are amended to read:
915	288.901  Enterprise Florida, Inc.; creation; membership;
916	organization; meetings; disclosure.--
917	(7)  The Governor shall serve as chairperson of the board
918	of directors. The board of directors shall biennially elect one
919	of its appointive members as vice chairperson. The president
920	shall keep a record of the proceedings of the board of directors
921	and is the custodian of all books, documents, and papers filed
922	with the board of directors, the minutes of the board of
923	directors, and the official seal of Enterprise Florida, Inc.
924	(8)  The board of directors shall meet at least four times
925	each year, upon the call of the chairperson, at the request of
926	the vice chairperson, or at the request of a majority of the
927	membership. A majority of the total number of current, voting
928	all directors fixed by subsection (3) shall constitute a quorum.
929	The board of directors may take official action by a majority
930	vote of the members present at any meeting at which a quorum is
931	present.
932	(11)  Notwithstanding the provisions of subsection (3), the
933	board of directors may by resolution appoint at-large members to
934	the board from the private sector, each of whom may serve a 1-
935	year term. At-large members shall have the powers and duties of
936	other members of the board, except that they may not serve on an
937	executive committee. An at-large member is eligible for
938	reappointment but may not vote on his or her own reappointment.
939	An at-large member shall be eligible to fill vacancies occurring
940	among private-sector appointees under subsection (3).
941	Section 14.  Subsection (1), paragraph (b) of subsection
942	(4), and subsections (5), (7), and (8) of section 288.90151,
943	Florida Statutes, are amended to read:
944	288.90151  Return on investment from activities of
945	Enterprise Florida, Inc.--
946	(1)  The public funds appropriated each year for the
947	operation of Enterprise Florida, Inc., are invested in this
948	public-private partnership to enhance international trade and
949	economic development, to spur job-creating investments, and to
950	create new employment opportunities for Floridians, and to
951	prepare Floridians for those jobs. This policy will be the
952	Legislature's priority consideration when reviewing the return-
953	on-investment for Enterprise Florida, Inc.
954	(4)
955	(b)  The board of directors of Enterprise Florida, Inc.,
956	shall adopt for each upcoming fiscal year an operating budget
957	for the organization that specifies the intended uses of the
958	state's operating investment and a plan for securing private-
959	sector support to Enterprise Florida, Inc. Each fiscal year
960	private-sector support to Enterprise Florida, Inc., shall equal
961	no less than 100 percent of the state's operating investment,
962	including at least $1 million in cash as defined in paragraph
963	(5)(a), and an additional $400,000 in cash as defined in
964	paragraphs (5)(a), (b), and (c).
965	(5)  Private-sector support in operating Enterprise
966	Florida, Inc., includes:
967	(a)  Cash given directly to Enterprise Florida, Inc., for
968	its operations, excluding contributions from grantees or from
969	companies with Enterprise Florida, Inc., contracts representing
970	more than 5 percent of the value of all Enterprise Florida,
971	Inc., contracts, exclusive of grants, or more than 5 percent of
972	the company's revenues. Cash in this category is not subject to
973	restrictions on the use of appropriated funds. operating budget;
974	(b)  Cash jointly raised by Enterprise Florida, Inc., and a
975	local economic development organization, a group of such
976	organizations, or a statewide business organization that
977	supports collaborative projects.;
978	(c)  Cash generated by fees charged for products or
979	services of Enterprise Florida, Inc., and by sponsorship of
980	events, missions, programs, and publications; and
981	(d)  In-kind contributions directly to Enterprise Florida,
982	Inc., including: business expenditures; business services
983	provided; business support; or other business contributions that
984	augment the operations, program, activities, or assets of
985	Enterprise Florida, Inc., including, but not limited to: an
986	individual's time and expertise; sponsored publications;
987	private-sector staff services; payment for advertising
988	placements; sponsorship of events; sponsored or joint research;
989	discounts on leases or purchases; mission or program
990	sponsorship; and copayments, stock, warrants, royalties, or
991	other private resources dedicated to Enterprise Florida, Inc.
992	(7)  As part of the annual report required under s.
993	288.906, Enterprise Florida, Inc., shall include a study provide
994	the Legislature with information quantifying the public's
995	return-on-investment as described in this section for fiscal
996	year 1997-1998 and each subsequent fiscal year. The annual
997	report shall also include the results of a customer-satisfaction
998	survey of businesses served, as well as the lead economic
999	development staff person of each primary partner organization
1000	local economic development organization that employs a full-time
1001	or part-time staff person.
1002	(8)  Enterprise Florida, Inc., in consultation with the
1003	Office of Program Policy Analysis and Government Accountability,
1004	shall hire an economic analysis a private accounting firm to
1005	develop the methodology for establishing and reporting return-
1006	on-investment and in-kind contributions as described in this
1007	section and a firm experienced in survey research to develop,
1008	analyze, and report on the results of the customer-satisfaction
1009	survey. The Office of Program Policy Analysis and Government
1010	Accountability shall review and offer feedback on the
1011	methodology before it is implemented. The private accounting
1012	firm shall certify whether the applicable statements in the
1013	annual report comply with this subsection.
1014	Section 15.  Subsection (3) of section 288.903, Florida
1015	Statutes, is amended to read:
1016	288.903  Board of directors of Enterprise Florida, Inc.;
1017	president; employees.--
1018	(3)  The board of directors of Enterprise Florida, Inc.,
1019	and its officers shall be responsible for the prudent use of all
1020	public and private funds and shall ensure that the use of such
1021	funds is in accordance with all applicable laws, bylaws, or
1022	contractual requirements. No employee of Enterprise Florida,
1023	Inc., may receive compensation for employment which exceeds the
1024	salary paid to the Governor, unless the board of directors and
1025	the employee have executed a contract that prescribes specific,
1026	measurable performance outcomes for the employee, the
1027	satisfaction of which provides the basis for the award of
1028	incentive payments that increase the employee's total
1029	compensation to a level above the salary paid to the Governor.
1030	Section 16.  Paragraph (b) of subsection (1) of section
1031	288.904, Florida Statutes, is amended to read:
1032	288.904  Powers of the board of directors of Enterprise
1033	Florida, Inc.--
1034	(1)  The board of directors of Enterprise Florida, Inc.,
1035	shall have the power to:
1036	(b)1.  Make and enter into contracts and other instruments
1037	necessary or convenient for the exercise of its powers and
1038	functions, except that any contract made with an organization
1039	represented on the board of directors that exceeds 5 percent of
1040	the total annual amount of contracts of Enterprise Florida,
1041	Inc., exclusive of grants, or 5 percent of the represented
1042	organization's annual revenue must be approved by a two-thirds
1043	vote of the entire board members in attendance at a meeting at
1044	which a quorum is present of directors, and the board member
1045	representing such organization shall abstain from voting. No
1046	more than 65 percent of the dollar value of all contracts or
1047	other agreements entered into in any fiscal year, exclusive of
1048	grant programs, shall be made with an organization represented
1049	on the board of directors. This section does not apply to
1050	contracts awarded by another entity to an organization
1051	represented on the board of directors or to contracts if
1052	Enterprise Florida, Inc., is the recipient of funds from an
1053	organization represented on the board of directors An
1054	organization represented on the board may not enter into a
1055	contract to receive a state-funded economic development
1056	incentive or similar grant, unless such incentive award is
1057	specifically endorsed by a two-thirds vote of the entire board.
1058	The board member representing such organization, if applicable,
1059	shall abstain from voting and refrain from discussing the issue
1060	with other members of the board. No more than 50 percent of the
1061	dollar value of grants issued by the board in any fiscal year
1062	may go to businesses associated with board members.
1063	2.  A contract that Enterprise Florida, Inc., executes with
1064	a person or organization under which such person or organization
1065	agrees to perform economic development services or similar
1066	business assistance services on behalf of Enterprise Florida,
1067	Inc., or on behalf of the state must include provisions
1068	requiring that such person or organization report on
1069	performance, account for proper use of funds provided under the
1070	contract, coordinate with other components of state and local
1071	economic development systems, and avoid duplication of existing
1072	state and local services and activities.
1073	Section 17.  Subsection (6) of section 288.905, Florida
1074	Statutes, is amended to read:
1075	288.905  Duties of the board of directors of Enterprise
1076	Florida, Inc.--
1077	(6)  Any employee leased by Enterprise Florida, Inc., from
1078	the state, or any employee who derives his or her salary from
1079	funds appropriated by the Legislature, may not receive a pay
1080	raise or bonus in excess of a pay raise or bonus that is
1081	received by similarly situated state employees. However, this
1082	subsection does not prohibit the payment of a pay raise or bonus
1083	from funds received from sources other than the Florida
1084	Legislature.
1085	Section 18.  Effective July 1, 2004, notwithstanding
1086	section 80 of chapter 2003-399, Laws of Florida, section
1087	288.9515, Florida Statutes, shall not stand repealed on July 1,
1088	2004, as scheduled by such law, but said section is reenacted
1089	and amended to read:
1090	288.9515  Authorized technology development programs.--
1091	(1)  Enterprise Florida, Inc., may create technology
1092	development and applications services, and may serve as an
1093	umbrella organization for the coordination of information that
1094	provides technology applications service providers throughout
1095	the state which provide critical, managerial, technological,
1096	scientific, and related financial and business expertise
1097	essential for international and domestic competitiveness to
1098	small-sized and medium-sized manufacturing and knowledge-based
1099	service firms. Enterprise Florida, Inc., is authorized the
1100	following powers in order to carry out these functions:
1101	(a)  Providing communication and coordination services
1102	among technology development and applications service providers
1103	throughout the state.
1104	(b)  Providing coordinated marketing services to small-
1105	sized and medium-sized manufacturers in the state on behalf of,
1106	and in partnership with, technology applications service
1107	providers.
1108	(b)(c)  Securing additional sources of funds on behalf of,
1109	and in partnership with, technology-based businesses technology
1110	applications service providers.
1111	(c)(d)  Developing plans and policies to assist small-sized
1112	and medium-sized manufacturing companies or other knowledge-
1113	based firms in Florida.
1114	(e)  Entering into contracts with technology applications
1115	service providers for expanded availability of high-quality
1116	assistance to small-sized and medium-sized manufacturing
1117	companies or knowledge-based service firms, including, but not
1118	limited to, technological, human resources development, market
1119	planning, finance, and interfirm collaboration. Enterprise
1120	Florida, Inc., shall ensure that all contracts in excess of
1121	$20,000 for the delivery of such assistance to Florida firms
1122	shall be based on competitive requests for proposals and shall
1123	establish clear standards for the delivery of services under
1124	such contracts. Such standards include, but are not limited to:
1125	1.  The ability and capacity to deliver services in
1126	sufficient quality and quantity.
1127	2.  The ability and capacity to deliver services in a
1128	timely manner.
1129	3.  The ability and capacity to meet the needs of firms in
1130	the proposed market area.
1131	(d)(f)  Assisting other educational institutions,
1132	enterprises, or the entities providing business assistance to
1133	small-sized and medium-sized manufacturing and knowledge-based
1134	services enterprises.
1135	(g)  Establishing a system to evaluate the effectiveness
1136	and efficiency of technology applications services provided to
1137	small-sized and medium-sized enterprises.
1138	(e)(h)  Establishing special education and informational
1139	programs for Florida enterprises and for educational
1140	institutions and enterprises providing business assistance to
1141	Florida enterprises.
1142	(f)(i)  Assisting in evaluating and documenting the needs
1143	of firms in this state for technology development and
1144	applications services, and developing means to ensure that these
1145	needs are met, consistent with the powers provided for in this
1146	subsection.
1147	(g)(j)  Maintaining an office in such place or places as
1148	the board of directors of Enterprise Florida, Inc., approves.
1149	(h)(k)  Making and executing contracts with any person,
1150	enterprise, educational institution, association, or any other
1151	entity necessary or convenient for the performance of its duties
1152	and the exercise of the powers and functions of Enterprise
1153	Florida, Inc., under this subsection.
1154	(i)(l)  Receiving funds from any source to carry out the
1155	purposes of providing technology development and applications
1156	services, including, but not limited to, gifts or grants from
1157	any department, agency, or instrumentality of the United States
1158	or of the state, or any enterprise or person, for any purpose
1159	consistent with the provisions of this subsection.
1160	(2)  When choosing contractors under this section,
1161	preference shall be given to existing institutions,
1162	organizations, and enterprises so long as these existing
1163	institutions, organizations, and enterprises demonstrate the
1164	ability to perform at standards established by Enterprise
1165	Florida, Inc., under paragraph (1)(e). Neither the provisions of
1166	ss. 288.9511-288.9517 nor the actions taken by Enterprise
1167	Florida, Inc., under this section shall impair or hinder the
1168	operations, performance, or resources of any existing
1169	institution, organization, or enterprise.
1170	(3)  Enterprise Florida, Inc., may create a technology
1171	development financing fund, to be called the Florida Technology
1172	Research Investment Fund. The fund shall increase technology
1173	development in this state by investing in technology development
1174	projects that have the potential to generate investment-grade
1175	technologies of importance to the state's economy as evidenced
1176	by the willingness of private businesses to coinvest in such
1177	projects. Enterprise Florida, Inc., may also demonstrate and
1178	develop effective approaches to, and benefits of, commercially
1179	oriented research collaborations between businesses,
1180	universities, and state and federal agencies and organizations.
1181	Enterprise Florida, Inc., shall endeavor to maintain the fund as
1182	a self-supporting fund once the fund is sufficiently capitalized
1183	under program guidelines of Enterprise Florida, Inc. as
1184	reflected in the minimum funding report required in s. 288.9516.
1185	The technology research investment projects may include, but are
1186	not limited to:
1187	(a)  Technology development projects expected to lead to a
1188	specific investment-grade technology that is of importance to
1189	industry in this state.
1190	(b)  Technology development centers and facilities expected
1191	to generate a stream of products and processes with commercial
1192	application of importance to industry in this state.
1193	(c)  Technology development projects that have, or are
1194	currently using, other federal or state funds such as federal
1195	Small Business Innovation Research awards.
1196	(4)  Enterprise Florida, Inc., shall invest moneys
1197	contained in the Florida Technology Research Investment Fund in
1198	technology application research or for technology development
1199	projects that have the potential for commercial market
1200	application. The partnership shall coordinate any investment in
1201	any space-related technology projects with the Florida Space
1202	Authority and the Technological Research and Development
1203	Authority.
1204	(a)  The investment of moneys contained in the Florida
1205	Technology Research Investment Fund is limited to qualified
1206	investments in qualified securities in which a private
1207	enterprise in this state coinvests at least 40 percent of the
1208	total project costs, in conjunction with other cash or noncash
1209	investments from state educational institutions, state and
1210	federal agencies, or other institutions.
1211	(b)  All moneys in the Florida Technology Research
1212	Investment Fund shall be continuously appropriated to the fund
1213	and may be used for loan guarantees, letter of credit
1214	guarantees, cash reserves for loan and letter of credit
1215	guarantees, payments of claims pursuant to contracts for
1216	guarantees, subordinated loans, loans with warrants, royalty
1217	investments, equity investments, and For the purposes of this
1218	fund, qualified securities include loans, loans convertible to
1219	equity, equity, loans with warrants attached that are
1220	beneficially owned by the board, royalty agreements, or any
1221	other contractual arrangements through which the Florida
1222	Technology Research Investment Fund receives an interest, right,
1223	return of funds, or other consideration and may be used for
1224	operations of the fund. All such uses of moneys in the fund are
1225	qualified investments. Any claim against the fund or Enterprise
1226	Florida, Inc., relating to investment of moneys in the fund
1227	shall be paid solely from the fund. Neither the credit nor the
1228	taxing power of the state shall be pledged to secure the fund or
1229	moneys in the fund, other than from moneys appropriated or
1230	assigned to the fund, and the state shall not be liable or
1231	obligated in any way for any claims against the fund or against
1232	Enterprise Florida, Inc. arrangement in which the board is
1233	providing scientific and technological services to any federal,
1234	state, county, or municipal agency, or to any individual,
1235	corporation, enterprise, association, or any other entity
1236	involving technology development.
1237	(c)  Not more than $175,000 or 5 percent of the revenues
1238	generated by investment of moneys contained in the Florida
1239	Technology Research Investment Fund plus 5 percent of the
1240	revenues generated by investments under the Florida Small
1241	Business Technology Growth Program under s. 288.95155, whichever
1242	is greater, may be used on an annual basis to pay the combined
1243	operating expenses associated with operation of the Florida
1244	Technology Research Investment Fund and the Florida Small
1245	Business Technology Growth Program.
1246	(d)  In the event of liquidation or dissolution of
1247	Enterprise Florida, Inc., or the Florida Technology Research
1248	Investment Fund, any rights or interests in a qualified security
1249	or portion of a qualified security purchased with moneys
1250	invested by the State of Florida shall vest in the state, under
1251	the control of the State Board of Administration. The state is
1252	entitled to, in proportion to the amount of investment in the
1253	fund by the state, any balance of funds remaining in the Florida
1254	Technology Research Investment Fund after payment of all debts
1255	and obligations upon liquidation or dissolution of Enterprise
1256	Florida, Inc., or the fund.
1257	(e)  The investment of funds contained in the Florida
1258	Technology Research Investment Fund does not constitute a debt,
1259	liability, or obligation of the State of Florida or of any
1260	political subdivision thereof, or a pledge of the faith and
1261	credit of the state or of any such political subdivision.
1262	(5)  Enterprise Florida, Inc., may create technology
1263	commercialization programs in partnership with private
1264	enterprises, educational institutions, and other institutions to
1265	increase the rate at which technologies with potential
1266	commercial application are moved from university, public, and
1267	industry laboratories into the marketplace. Such programs shall
1268	be created based upon research to be conducted by Enterprise
1269	Florida, Inc.
1270	(6)  Enterprise Florida, Inc., shall coordinate with local
1271	and regional economic development organizations to facilitate a
1272	statewide entrepreneurship strategy to stimulate the growth of
1273	startup businesses and technology innovations in this state.
1274	This strategy must include, but need not be limited to,
1275	technology transfer coordination, university linkages,
1276	entrepreneurial networks and training, and startup capital
1277	access, including the formation and growth of individual and
1278	business networks that may be willing to invest in startup
1279	businesses in this state.
1280	Section 19.  Subsection (2) of section 288.99, Florida
1281	Statutes, is amended to read:
1282	288.99  Certified Capital Company Act.--
1283	(2)  PURPOSE.--The primary purpose of this act is to
1284	stimulate a substantial increase in venture capital investments
1285	in this state by providing an incentive for insurance companies
1286	to invest in certified capital companies in this state which, in
1287	turn, will make investments in new businesses or in expanding
1288	businesses, including minority-owned or minority-operated
1289	businesses and businesses located in a designated Front Porch
1290	community, enterprise zone, designated urban job tax credit
1291	high-crime area, rural job tax credit county, or nationally
1292	recognized historic district. The increase in investment capital
1293	flowing into new or expanding businesses is intended to
1294	contribute to employment growth, create jobs which exceed the
1295	average wage for the county in which the jobs are created, and
1296	expand or diversify the economic base of this state.
1297	Section 20.  Subsections (15) through (17) of section
1298	626.015, Florida Statutes, are renumbered as subsections (16)
1299	through (18), respectively, and a new subsection (15) is added
1300	to said section, to read:
1301	626.015  Definitions.--As used in this part:
1302	(15)  "Personal lines agent" means a general lines agent
1303	who is limited to transacting business related to property and
1304	casualty insurance sold to individuals and families for
1305	noncommercial purposes.
1306	Section 21.  Subsection (3) is added to section 626.022,
1307	Florida Statutes, to read:
1308	626.022  Scope of part.--
1309	(3)  Provisions of this part that apply to general lines
1310	agents and applicants also apply to personal lines agents and
1311	applicants, except as otherwise provided.
1312	Section 22.  Subsection (8) is added to section 626.241,
1313	Florida Statutes, to read:
1314	626.241  Scope of examination.--
1315	(8)  An examination for licensure as a personal lines agent
1316	shall consist of 100 questions and shall be limited in scope to
1317	the kinds of business transacted under such license.
1318	Section 23.  Subsection (1) of section 626.311, Florida
1319	Statutes, is amended to read:
1320	626.311  Scope of license.--
1321	(1)  Except as to personal lines agents and limited
1322	licenses, the applicant for license as a general lines agent or
1323	customer representative shall qualify for all property, marine,
1324	casualty, and surety lines except bail bonds which require a
1325	separate license under chapter 648. The license of a general
1326	lines agent may also cover health insurance if health insurance
1327	is included in the agent's appointment by an insurer as to which
1328	the licensee is also appointed as agent for property or casualty
1329	or surety insurance. The license of a customer representative
1330	shall provide, in substance, that it covers all of such classes
1331	of insurance that his or her appointing general lines agent or
1332	agency is currently so authorized to transact under the general
1333	lines agent's license and appointments. No such license shall be
1334	issued limited to particular classes of insurance except for
1335	bail bonds which require a separate license under chapter 648 or
1336	for personal lines agents. Personal lines agents are limited to
1337	transacting business related to property and casualty insurance
1338	sold to individuals and families for noncommercial purposes.
1339	Section 24.  Section 626.727, Florida Statutes, is amended
1340	to read:
1341	626.727  Scope of this part.--This part applies only to
1342	general lines agents, customer representatives, service
1343	representatives, and managing general agents, all as defined in
1344	s. 626.015. Provisions of this part which apply to general lines
1345	agents and applicants also apply to personal lines agents and
1346	applicants, except as otherwise provided.
1347	Section 25.  Subsection (1) of section 626.732, Florida
1348	Statutes, is amended to read:
1349	626.732  Requirement as to knowledge, experience, or
1350	instruction.--
1351	(1)  Except as provided in subsection (3), no applicant for
1352	a license as a general lines agent or personal lines agent,
1353	except for a chartered property and casualty underwriter (CPCU),
1354	other than as to a limited license as to baggage and motor
1355	vehicle excess liability insurance, credit property insurance,
1356	credit insurance, in-transit and storage personal property
1357	insurance, or communications equipment property insurance or
1358	communication equipment inland marine insurance, shall be
1359	qualified or licensed unless within the 4 years immediately
1360	preceding the date the application for license is filed with the
1361	department the applicant has:
1362	(a)  Taught or successfully completed classroom courses in
1363	insurance, 3 hours of which shall be on the subject matter of
1364	ethics, satisfactory to the department at a school, college, or
1365	extension division thereof, approved by the department. To
1366	qualify for licensure as a personal lines agent, the applicant
1367	must complete a total of 52 hours of classroom courses in
1368	insurance;
1369	(b)  Completed a correspondence course in insurance, 3
1370	hours of which shall be on the subject matter of ethics,
1371	satisfactory to the department and regularly offered by
1372	accredited institutions of higher learning in this state and,
1373	except if he or she is applying for a limited license under s.
1374	626.321 for licensure as a general lines agent, has had at least
1375	6 months of responsible insurance duties as a substantially
1376	full-time bona fide employee in all lines of property and
1377	casualty insurance set forth in the definition of general lines
1378	agent under s. 626.015 or, for licensure as a personal lines
1379	agent, has completed at least 3 months in responsible insurance
1380	duties as a substantially full-time employee in property and
1381	casualty insurance sold to individuals and families for
1382	noncommercial purposes;
1383	(c)1.  For licensure as a general lines agent, completed at
1384	least 1 year in responsible insurance duties as a substantially
1385	full-time bona fide employee in all lines of property and
1386	casualty insurance, exclusive of aviation and wet marine and
1387	transportation insurances but not exclusive of boats of less
1388	than 36 feet in length or aircraft not held out for hire, as set
1389	forth in the definition of a general lines agent under s.
1390	626.015, without the education requirement mentioned in
1391	paragraph (a) or paragraph (b); or
1392	2.  For licensure as a personal lines agent, completed at
1393	least 6 months in responsible insurance duties as a
1394	substantially full-time bona fide employee in property and
1395	casualty insurance sold to individuals and families for
1396	noncommercial purposes, without the education requirement
1397	mentioned in paragraph (a) or paragraph (b); or
1398	(d)1.  For licensure as a general lines agent, completed at
1399	least 1 year of responsible insurance duties as a licensed and
1400	appointed customer representative or limited customer
1401	representative in commercial or personal lines of property and
1402	casualty insurance and 40 hours of classroom courses approved by
1403	the department covering the areas of property, casualty, surety,
1404	health, and marine insurance; or
1405	2.  For licensure as a personal lines agent, completed at
1406	least 6 months of responsible insurance duties as a licensed and
1407	appointed customer representative or limited customer
1408	representative in property and casualty insurance sold to
1409	individuals and families for noncommercial purposes and 20 hours
1410	of classroom courses approved by the department which are
1411	related to property and casualty insurance sold to individuals
1412	and families for noncommercial purposes;
1413	(e)1.2.  For licensure as a general lines agent, completed
1414	at least 1 year of responsible insurance duties as a licensed
1415	and appointed service representative in either commercial or
1416	personal lines of property and casualty insurance and 80 hours
1417	of classroom courses approved by the department covering the
1418	areas of property, casualty, surety, health, and marine
1419	insurance; or.
1420	2.  For licensure as a personal lines agent, completed at
1421	least 6 months of responsible insurance duties as a licensed and
1422	appointed service representative in property and casualty
1423	insurance sold to individuals and families for noncommercial
1424	purposes and 40 hours of classroom courses approved by the
1425	department which are related to property and casualty insurance
1426	sold to individuals and families for noncommercial purposes; or
1427	(f)  For licensure as a personal lines agent, completed at
1428	least 3 years of responsible duties as a licensed and appointed
1429	customer representative in property and casualty insurance sold
1430	to individuals and families for noncommercial purposes.
1431	Section 26.  The Department of Financial Services may delay
1432	issuing licenses to personal lines agents on the effective date
1433	of this act if the department has not completed the process of
1434	incorporating necessary procedures for issuing personal lines
1435	licenses into its licensing systems.
1436	Section 27.  Subsection (1) of section 626.747, Florida
1437	Statutes, is amended to read:
1438	626.747  Branch agencies.--
1439	(1)  Each branch place of business established by an agent
1440	or agency, firm, corporation, or association shall be in the
1441	active full-time charge of a licensed general lines agent who is
1442	appointed to represent one or more insurers. Any agent or
1443	agency, firm, corporation, or association which has established
1444	one or more branch places of business shall be required to have
1445	at least one licensed general lines, life, or health agent who
1446	is appointed to represent one or more insurers at each location
1447	of the agency including its headquarters location.
1448	Section 28.  Paragraph (r) is added to subsection (6) of
1449	section 627.351, Florida Statutes, to read:
1450	627.351  Insurance risk apportionment plans.--
1451	(6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
1452	(r)  A salaried employee of the corporation who performs
1453	policy administration services subsequent to the effectuation of
1454	a corporation policy is not required to be licensed as an agent
1455	under the provisions of s. 626.112.
1456	Section 29.  Subsections (3) and (4) of section 288.041,
1457	Florida Statutes, are repealed:
1458	288.041  Solar energy industry; legislative findings and
1459	policy; promotional activities.--
1460	(3)  Enterprise Florida, Inc., and its boards shall assist
1461	in the expansion of the solar energy industry in this state.
1462	Such efforts shall be undertaken in cooperation with the
1463	Department of Community Affairs, the Florida Solar Energy
1464	Center, and the Florida Solar Energy Industries Association, and
1465	shall include:
1466	(a)  Providing assistance and support to new and existing
1467	photovoltaic companies, with special emphasis on attracting one
1468	or more manufacturers of photovoltaic products to locate within
1469	this state.
1470	(b)  Sponsoring initiatives which aid and take full
1471	advantage of the export market potential of solar technologies.
1472	(c)  Informing the business sector of this state about
1473	opportunities for cost-effective commercial applications of
1474	solar technologies.
1475	(d)  Encouraging employment of residents of this state by
1476	solar energy companies.
1477	(e)  Retaining existing solar energy companies and
1478	supporting their expansion efforts in this state.
1479	(f)  Supporting the promotion of solar energy by sponsoring
1480	workshops, seminars, conferences, and educational programs on
1481	the benefits of solar energy.
1482	(g)  Recognizing outstanding developments and achievements
1483	in, and contributions to, the solar energy industry.
1484	(h)  Collecting and disseminating solar energy information
1485	relevant to the promotion of solar energy applications.
1486	(i)  Enlisting the support of persons, civic groups, the
1487	solar energy industry, and other organizations to promote and
1488	improve solar energy products and services.
1489	(4)  The department shall also promote projects that
1490	demonstrate viable applications of solar technology which may
1491	include, but shall not be limited to: irrigation and stock
1492	watering, process heat for dairy and citrus operations,
1493	aquaculture, hydroponics, horticulture, waste detoxification,
1494	and other means of meeting the energy needs of the agricultural
1495	industry.
1496	Section 30.  Subsection (3) of section 288.9015, Florida
1497	Statutes, is repealed:
1498	288.9015  Enterprise Florida, Inc.; purpose; duties.--
1499	(3)  It shall be the responsibility of Enterprise Florida,
1500	Inc., through the Workforce Development Board, to develop a
1501	comprehensive approach to workforce development that will result
1502	in better employment opportunities for the residents of this
1503	state. Such comprehensive approach must include:
1504	(a)  Creating and maintaining a highly skilled workforce
1505	that is capable of responding to rapidly changing technology and
1506	diversified market opportunities.
1507	(b)  Training, educating, and assisting target populations,
1508	such as those who are economically disadvantaged or who
1509	participate in the WAGES Program or otherwise receive public
1510	assistance to become independent, self-reliant, and self-
1511	sufficient. This approach must ensure the effective use of
1512	federal, state, local, and private resources in reducing the
1513	need for public assistance.
1514	Section 31.  Section 288.8155, Florida Statutes, is
1515	repealed.
1516	Section 32.  Effective July 1, 2004, section 288.9517,
1517	Florida Statutes, and section 14 of chapter 93-187, Laws of
1518	Florida, are repealed.
1519	Section 33.  Except as otherwise provided herein, this act
1520	shall take effect upon becoming a law.

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