Senate Bill sb2728e3

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    CS for CS for SB 2728                          Third Engrossed



  1                      A bill to be entitled

  2         An act relating to economic development

  3         incentives; amending s. 220.191, F.S.;

  4         expanding the definition of qualified project

  5         for the Capital Investment Tax Credit;

  6         providing for an annual corporate income tax

  7         credit for a qualifying business establishing a

  8         new or expanded headquarters facility in this

  9         state which locates in an enterprise zone and

10         brownfield area and meeting specified

11         requirements; providing for carryforward of

12         unused credits; providing for use of credits by

13         certain affiliated companies or related

14         entities; amending s. 288.1088, F.S.; providing

15         eligibility requirements for the receipt of

16         funds from the Quick Action Closing Fund;

17         authorizing the waiver of certain criteria for

18         projects that would significantly benefit the

19         economy; providing additional requirements for

20         Enterprise Florida, Inc., in evaluating

21         proposed projects; requiring that a contract

22         for payment from the Quick Action Closing Fund

23         provide that the payment of moneys is

24         contingent upon a sufficient appropriation of

25         funds by the Legislature and upon the release

26         of appropriated funds by the Legislative Budget

27         Commission; deleting provisions authorizing the

28         Governor to reallocate unencumbered funds in

29         the Quick Action Closing Fund to other economic

30         development programs; creating s. 288.1089,

31         F.S.; creating the Innovation Incentive Program


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    CS for CS for SB 2728                          Third Engrossed



 1         within the Office of Tourism, Trade, and

 2         Economic Development for certain purposes;

 3         providing definitions; providing an

 4         incentive-award limitation; providing for award

 5         application and eligibility; providing

 6         qualification requirements; providing proposal

 7         evaluation and recommendations requirements for

 8         Enterprise Florida, Inc.; providing for

 9         negotiation of award amounts by the office;

10         providing for agreements for payments of

11         certain moneys under certain circumstances;

12         providing criteria for award approval or

13         disapproval; providing for incentive payment

14         agreements; requiring Enterprise Florida, Inc.,

15         to assist the office in validating certain

16         business performances; requiring a report to

17         the Governor and Legislature; requiring

18         Enterprise Florida, Inc. to develop business

19         ethics standards; requiring a report; creating

20         s. 288.1171, F.S.; defining the term "qualified

21         job-training organization"; providing for the

22         Office of Tourism, Trade, and Economic

23         Development to certify qualified job-training

24         organizations; providing for the distribution

25         of certain funds to a certified organization

26         pursuant to contract; providing contract

27         requirements; specifying uses of the funds;

28         providing for revocation of certification under

29         certain circumstances; providing for

30         appropriations to be distributed through the

31         Office of Tourism, Trade, and Economic


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    CS for CS for SB 2728                          Third Engrossed



 1         Development; amending s. 288.0655; correcting a

 2         cross reference; amending s. 403.973, F.S.;

 3         providing for review of possible sites for

 4         projects funded under s. 288.1089, F.S.;

 5         amending s. 624.509, F.S.; authorizing

 6         transfers to certain entities of certain excess

 7         credits against the insurance premium tax;

 8         providing criteria, requirements, and

 9         limitations; providing nonapplication to

10         certain affiliated groups of corporations;

11         providing appropriations; providing an

12         effective date.

13  

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

15  

16         Section 1.  Paragraph (h) of subsection (1) and

17  subsection (5) of section 220.191, Florida Statutes, are

18  amended, subsections (3), (4), (6), and (7) of that section

19  are renumbered as subsections (4), (5), (7), and (8),

20  respectively, and a new subsection (3) is added to that

21  section, to read:

22         220.191  Capital investment tax credit.--

23         (1)  DEFINITIONS.--For purposes of this section:

24         (h)  "Qualifying project" means:

25         1.  A new or expanding facility in this state which

26  creates at least 100 new jobs in this state and is in one of

27  the high-impact sectors identified by Enterprise Florida,

28  Inc., and certified by the office pursuant to s. 288.108(6),

29  including, but not limited to, aviation, aerospace,

30  automotive, and silicon technology industries; or

31  


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    CS for CS for SB 2728                          Third Engrossed



 1         2.  A new or expanded facility in this state which is

 2  engaged in a target industry designated pursuant to the

 3  procedure specified in s. 288.106(1)(o) and which is induced

 4  by this credit to create or retain at least 1,000 jobs in this

 5  state, provided that at least 100 of those jobs are new, pay

 6  an annual average wage of at least 130 percent of the average

 7  private sector wage in the area as defined in s. 288.106(1),

 8  and make a cumulative capital investment of at least $100

 9  million after July 1, 2005. Jobs may be considered retained

10  only if there is significant evidence that the loss of jobs is

11  imminent. Notwithstanding subsection (2), annual credits

12  against the tax imposed by this chapter shall not exceed 50

13  percent of the increased annual corporate income tax liability

14  or the premium tax liability generated by or arising out of a

15  project qualifying under this subparagraph. A facility that

16  qualifies under this subparagraph for an annual credit against

17  the tax imposed by this chapter may take the tax credit for a

18  period not to exceed 5 years; or

19         3.  A new or expanded headquarters facility in this

20  state which locates in an enterprise zone and brownfield area

21  and is induced by this credit to create at least 1,500 jobs

22  which on average pay at least 200 percent of the statewide

23  average annual private sector wage, as published by the Agency

24  for Workforce Innovation or its successor, and which new or

25  expanded headquarters facility makes a cumulative capital

26  investment in this state of at least $250 million.

27         (3)(a)  Notwithstanding subsection (2), an annual

28  credit against the tax imposed by this chapter shall be

29  granted to a qualifying business which establishes a

30  qualifying project pursuant to subparagraph (1)(h)3., in an

31  amount equal to the lesser of $15 million or 5 percent of the


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    CS for CS for SB 2728                          Third Engrossed



 1  eligible capital costs made in connection with a qualifying

 2  project, for a period not to exceed 20 years beginning with

 3  the commencement of operations of the project. The tax credit

 4  shall be granted against the corporate income tax liability of

 5  the qualifying business and as further provided in paragraph

 6  (c). The total tax credit provided pursuant to this subsection

 7  shall be equal to no more than 100 percent of the eligible

 8  capital costs of the qualifying project.

 9         (b)  If the credit granted under this subsection is not

10  fully used in any one year because of insufficient tax

11  liability on the part of the qualifying business, the unused

12  amount may be carried forward for a period not to exceed 20

13  years after the commencement of operations of the project. The

14  carryover credit may be used in a subsequent year when the tax

15  imposed by this chapter for that year exceeds the credit for

16  which the qualifying business is eligible in that year under

17  this subsection after applying the other credits and unused

18  carryovers in the order provided by s. 220.02(8).

19         (c)  The credit granted under this subsection may be

20  used in whole or in part by the qualifying business or any

21  corporation that is either a member of that qualifying

22  business' affiliated group of corporations, is a related

23  entity taxable as a cooperative under subchapter T of the

24  Internal Revenue Code, or, if the qualifying business is an

25  entity taxable as a cooperative under subchapter T of the

26  Internal Revenue Code, is related to the qualifying business.

27  Any entity related to the qualifying business may continue to

28  file as a member of a Florida-nexus consolidated group

29  pursuant to a prior election made under s. 220.131(1), Florida

30  Statutes (1985), even if the parent of the group changes due

31  to a direct or indirect acquisition of the former common


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    CS for CS for SB 2728                          Third Engrossed



 1  parent of the group. Any credit can be used by any of the

 2  affiliated companies or related entities referenced in this

 3  paragraph to the same extent as it could have been used by the

 4  qualifying business. However, any such use shall not operate

 5  to increase the amount of the credit or extend the period

 6  within which the credit must be used.

 7         (6)(5)  The office, in consultation with Enterprise

 8  Florida, Inc., is authorized to develop the necessary

 9  guidelines and application materials for the certification

10  process described in subsection (5) (4).

11         Section 2.  Section 288.1088, Florida Statutes, is

12  amended to read:

13         288.1088  Quick Action Closing Fund.--

14         (1)(a)  The Legislature finds that attracting,

15  retaining, and providing favorable conditions for the growth

16  of certain high-impact business facilities, privately

17  developed critical rural infrastructure, or key facilities in

18  economically distressed urban or rural communities which

19  provide widespread economic benefits to the public through

20  high-quality employment opportunities in such facilities or in

21  related facilities attracted to the state, through the

22  increased tax base provided by the high-impact facility and

23  related businesses, through an enhanced entrepreneurial

24  climate in the state and the resulting business and employment

25  opportunities, and through the stimulation and enhancement of

26  the state's universities and community colleges. In the global

27  economy, there exists serious and fierce international

28  competition for these facilities, and in most instances, when

29  all available resources for economic development have been

30  used, the state continues to encounter severe competitive

31  disadvantages in vying for these business facilities.


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    CS for CS for SB 2728                          Third Engrossed



 1  Florida's rural areas must provide a competitive environment

 2  for business in the information age. This often requires an

 3  incentive to make it feasible for private investors to provide

 4  infrastructure in those areas.

 5         (b)  The Legislature therefore declares that sufficient

 6  resources shall be available to respond to extraordinary

 7  economic opportunities and to compete effectively for these

 8  high-impact business facilities, critical private

 9  infrastructure in rural areas, and key businesses in

10  economically distressed urban or rural communities.

11         (2)  There is created within the Office of Tourism,

12  Trade, and Economic Development the Quick Action Closing Fund.

13  Projects eligible for receipt of funds from the Quick Action

14  Closing Fund shall:

15         (a)  Be in an industry as referenced in s. 288.106.

16         (b)  Have a positive payback ratio of at least 5 to 1.

17         (c)  Be an inducement to the project's location or

18  expansion in the state.

19         (d)  Pay an average annual wage of at least 125 percent

20  of the areawide or statewide private-sector average wage.

21         (e)  Be supported by the local community in which the

22  project is to be located.

23         (3)(a)  Enterprise Florida, Inc., shall determine

24  eligibility of each project consistent with the criteria in

25  subsection (2). Enterprise Florida, Inc., in consultation with

26  the Office of Tourism, Trade, and Economic Development, may

27  waive these criteria based on extraordinary circumstances if

28  the project would significantly benefit the local or regional

29  economy. Enterprise Florida, Inc., shall evaluate individual

30  proposals for high-impact business facilities and forward

31  recommendations regarding the use of moneys in the fund for


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    CS for CS for SB 2728                          Third Engrossed



 1  such facilities to the director of the Office of Tourism,

 2  Trade, and Economic Development. Such evaluation and

 3  recommendation must include, but need not be limited to:

 4         1.  A description of the type of facility or

 5  infrastructure, its operations, and the associated product or

 6  service associated with the facility.

 7         2.  The number of full-time-equivalent jobs that will

 8  be created by the facility and the total estimated average

 9  annual wages of those jobs or, in the case of privately

10  developed rural infrastructure, the types of business

11  activities and jobs stimulated by the investment.

12         3.  The cumulative amount of investment to be dedicated

13  to the facility within a specified period.

14         4.  A statement of any special impacts the facility is

15  expected to stimulate in a particular business sector in the

16  state or regional economy or in the state's universities and

17  community colleges.

18         5.  A statement of the role the incentive is expected

19  to play in the decision of the applicant business to locate or

20  expand in this state or for the private investor to provide

21  critical rural infrastructure.

22         6.  A report evaluating the quality and value of the

23  company submitting a proposal. The report must include:

24         a.  A financial analysis of the company, including an

25  evaluation of the company's short-term liquidity ratio as

26  measured by its assets to liability, the company's

27  profitability ratio, and the company's long-term solvency as

28  measured by its debt-to-equity ratio;

29         b.  The historical market performance of the company;

30         c.  A review of any independent evaluations of the

31  company;


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    CS for CS for SB 2728                          Third Engrossed



 1         d.  A review of the latest audit of the company's

 2  financial statement and the related auditor's management

 3  letter; and

 4         e.  A review of any other types of audits that are

 5  related to the internal and management controls of the

 6  company.

 7         (b)  Upon receipt of the evaluation and recommendation

 8  from Enterprise Florida, Inc., the director shall recommend

 9  approval or disapproval of a project for receipt of funds from

10  the Quick Action Closing Fund to the Governor. In recommending

11  a project, the director shall include proposed performance

12  conditions that the project must meet to obtain incentive

13  funds. The Governor shall provide the evaluation of projects

14  recommended for approval to the President of the Senate and

15  the Speaker of the House of Representatives and consult with

16  the President of the Senate and the Speaker of the House of

17  Representatives before giving final approval for a project.

18  The Executive Office of the Governor shall recommend approval

19  of a project and the release of funds pursuant to the

20  legislative consultation and review requirements set forth in

21  s. 216.177. The recommendation must include proposed

22  performance conditions that the project must meet in order to

23  obtain funds.

24         (c)  Upon the approval of the Governor, the director of

25  the Office of Tourism, Trade, and Economic Development and the

26  business shall enter into a contract that sets forth the

27  conditions for payment of moneys from the fund. The contract

28  must include the total amount of funds awarded; the

29  performance conditions that must be met to obtain the award,

30  including, but not limited to, net new employment in the

31  state, average salary, and total capital investment;


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    CS for CS for SB 2728                          Third Engrossed



 1  demonstrate a baseline of current service and a measure of

 2  enhanced capability; the methodology for validating

 3  performance; the schedule of payments from the fund; and

 4  sanctions for failure to meet performance conditions. The

 5  contract must provide that payment of moneys from the fund is

 6  contingent upon sufficient appropriation of funds by the

 7  Legislature and upon sufficient release of appropriated funds

 8  by the Legislative Budget Commission.

 9         (d)  Enterprise Florida, Inc., shall validate

10  contractor performance. Such validation shall be reported

11  within 6 months after completion of the contract to the

12  Governor, President of the Senate, and the Speaker of the

13  House of Representatives.

14         (4)  The Governor may, in an emergency or special

15  circumstance, and in consultation with the President of the

16  Senate and the Speaker of the House of Representatives,

17  reallocate unencumbered funds appropriated to the Quick Action

18  Closing Fund to supplement statutorily created economic

19  development programs and operations. The Executive Office of

20  the Governor shall recommend approval of the transfer and

21  release of funds pursuant to the legislative consultation and

22  review requirements set forth in s. 216.177.

23         Section 3.  Section 288.1089, Florida Statutes, is

24  created to read:

25         288.1089  Innovation Incentive Program.--

26         (1)  The Innovation Incentive Program is created within

27  the Office of Tourism, Trade, and Economic Development to

28  ensure that sufficient resources are available to allow the

29  state to respond expeditiously to extraordinary economic

30  opportunities and to compete effectively for high-value

31  research and development and innovation business projects.


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    CS for CS for SB 2728                          Third Engrossed



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

 2         (a)  "Average private-sector wage" means the statewide

 3  average wage in the private sector or the average of all

 4  private-sector wages in the county or in the standard

 5  metropolitan area in which the project is located as

 6  determined by the Agency for Workforce Innovation.

 7         (b)  "Brownfield area" means an area designated as a

 8  brownfield area pursuant to s. 376.80.

 9         (c)  "Cumulative investment" means cumulative capital

10  investment and all eligible capital costs, as defined in s.

11  220.191.

12         (d)  "Director" means the director of the Office of

13  Tourism, Trade, and Economic Development.

14         (e)  "Enterprise zone" means an area designated as an

15  enterprise zone pursuant to s. 290.0065.

16         (f)  "Fiscal year" means the state fiscal year.

17         (g)  "Innovation business" means a business expanding

18  or locating in this state that is likely to serve as a

19  catalyst for the growth of an existing or emerging technology

20  cluster or will significantly impact the regional economy in

21  which it is to expand or locate.

22         (h)  "Jobs" means full-time equivalent positions, as

23  that term is consistent with terms used by the Agency for

24  Workforce Innovation and the United States Department of Labor

25  for purposes of unemployment compensation tax administration

26  and employment estimation, resulting directly from a project

27  in this state. The term does not include temporary

28  construction jobs.

29         (i)  "Match" means funding from local sources, public

30  or private, which will be paid to the applicant and which is

31  equal to 100 percent of an award. Eligible match funding may


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    CS for CS for SB 2728                          Third Engrossed



 1  include any tax abatement granted to the applicant under s.

 2  196.1995 or the appraised market value of land, buildings,

 3  infrastructure, or equipment conveyed or provided at a

 4  discount to the applicant. Complete documentation of a match

 5  payment or other conveyance must be presented to and verified

 6  by the office prior to transfer of state funds to an

 7  applicant. An applicant may not provide, directly or

 8  indirectly, more than 5 percent of match funding in any fiscal

 9  year. The sources of such funding may not include, directly or

10  indirectly, state funds appropriated from the General Revenue

11  Fund or any state trust fund, excluding tax revenues shared

12  with local governments pursuant to law.

13         (j)  "Office" means the Office of Tourism, Trade, and

14  Economic Development.

15         (k)  "Project" means the location to or expansion in

16  this state by an innovation business or research and

17  development applicant approved for an award pursuant to this

18  section.

19         (l)  "Research and development" means basic and applied

20  research in the sciences or engineering, as well as the

21  design, development, and testing of prototypes or processes of

22  new or improved products. Research and development does not

23  include market research, routine consumer product testing,

24  sales research, research in the social sciences or psychology,

25  nontechnological activities, or technical services.

26         (m)  "Research and development facility" means a

27  facility that is predominately engaged in research and

28  development activities. For purposes of this paragraph, the

29  term "predominantly" means at least 51 percent of the time.

30         (n)  "Rural area" means a rural city, rural community,

31  or rural county as defined in s. 288.106.


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    CS for CS for SB 2728                          Third Engrossed



 1         (3)  To be eligible for consideration for an innovation

 2  incentive award, an innovation business or research and

 3  development entity must submit a written application to

 4  Enterprise Florida, Inc., before making a decision to locate

 5  new operations in this state or expand an existing operation

 6  in this state. The application must include, but not be

 7  limited to:

 8         (a)  The applicant's federal employer identification

 9  number, unemployment account number, and state sales tax

10  registration number. If such numbers are not available at the

11  time of application, they must be submitted to the office in

12  writing prior to the disbursement of any payments under this

13  section.

14         (b)  The location in this state at which the project is

15  located or is to be located.

16         (c)  A description of the type of business activity,

17  product, or research and development undertaken by the

18  applicant, including six-digit North American Industry

19  Classification System codes for all activities included in the

20  project.

21         (d)  The applicant's projected investment in the

22  project.

23         (e)  The total investment, from all sources, in the

24  project.

25         (f)  The number of net new full-time equivalent jobs in

26  this state the applicant anticipates having created as of

27  December 31 of each year in the project and the average annual

28  wage of such jobs.

29         (g)  The total number of full-time equivalent employees

30  currently employed by the applicant in this state, if

31  applicable.


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    CS for CS for SB 2728                          Third Engrossed



 1         (h)  The anticipated commencement date of the project.

 2         (i)  A detailed explanation of why the innovation

 3  incentive is needed to induce the applicant to expand or

 4  locate in the state and whether an award would cause the

 5  applicant to locate or expand in this state.

 6         (j)  If applicable, an estimate of the proportion of

 7  the revenues resulting from the project that will be generated

 8  outside this state.

 9         (4)  To qualify for review by the office, the applicant

10  must, at a minimum, establish the following to the

11  satisfaction of Enterprise Florida, Inc., and the office:

12         (a)  The jobs created by the project must pay an

13  estimated annual average wage equaling at least 130 percent of

14  the average private-sector wage. The office may waive this

15  average wage requirement at the request of Enterprise Florida,

16  Inc., for a project located in a rural area, a brownfield

17  area, or an enterprise zone, when the merits of the individual

18  project or the specific circumstances in the community in

19  relationship to the project warrant such action. A

20  recommendation for waiver by Enterprise Florida, Inc., must

21  include a specific justification for the waiver and be

22  transmitted to the office in writing. If the director elects

23  to waive the wage requirement, the waiver must be stated in

24  writing and the reasons for granting the waiver must be

25  explained.

26         (b)  A research and development project must:

27         1.  Serve as a catalyst for an emerging or evolving

28  technology cluster.

29         2.  Demonstrate a plan for significant higher education

30  collaboration.

31  


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    CS for CS for SB 2728                          Third Engrossed



 1         3.  Provide the state, at a minimum, a break-even

 2  return on investment within a 20-year period.

 3         4.  Be provided with a one-to-one match from the local

 4  community. The match requirement may be reduced or waived in

 5  rural areas of critical economic concern or reduced in rural

 6  areas, brownfield areas, and enterprise zones.

 7         (c)  An innovation business project in this state,

 8  other than a research and development project, must:

 9         1.a.  Result in the creation of at least 1,000 direct,

10  new jobs at the business; or

11         b.  Result in the creation of at least 500 direct, new

12  jobs if the project is located in a rural area, a brownfield

13  area, or an enterprise zone.

14         2.  Have an activity or product that is within an

15  industry that is designated as a target industry business

16  under s. 288.106 or a designated sector under s. 288.108.

17         3.a.  Have a cumulative investment of at least $500

18  million within a 5-year period; or

19         b.  Have a cumulative investment that exceeds $250

20  million within a 10-year period if the project is located in a

21  rural area, brownfield area, or an enterprise zone.

22         4.  Be provided with a one-to-one match from the local

23  community. The match requirement may be reduced or waived in

24  rural areas of critical economic concern or reduced in rural

25  areas, brownfield areas, and enterprise zones.

26         (5)  Enterprise Florida, Inc., shall evaluate proposals

27  for innovation incentive awards and transmit recommendations

28  for awards to the office. Such evaluation and recommendation

29  must include, but need not be limited to:

30  

31  


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    CS for CS for SB 2728                          Third Engrossed



 1         (a)  A description of the project, its required

 2  facilities, and the associated product, service, or research

 3  and development associated with the project.

 4         (b)  The percentage of match provided for the project.

 5         (c)  The number of full-time equivalent jobs that will

 6  be created by the project, the total estimated average annual

 7  wages of such jobs, and the types of business activities and

 8  jobs likely to be stimulated by the project.

 9         (d)  The cumulative investment to be dedicated to the

10  project within 5 years and the total investment expected in

11  the project if more than 5 years.

12         (e)  The projected economic and fiscal impacts on the

13  local and state economies relative to investment.

14         (f)  A statement of any special impacts the project is

15  expected to stimulate in a particular business sector in the

16  state or regional economy or in the state's universities and

17  community colleges.

18         (g)  A statement of any anticipated or proposed

19  relationships with state universities.

20         (h)  A statement of the role the incentive is expected

21  to play in the decision of the applicant to locate or expand

22  in this state.

23         (i)  A recommendation and explanation of the amount of

24  the award needed to cause the applicant to expand or locate in

25  this state.

26         (j)  A discussion of the efforts and commitments made

27  by the local community in which the project is to be located

28  to induce the applicant's location or expansion, taking into

29  consideration local resources and abilities.

30         (k)  A recommendation for specific performance criteria

31  the applicant would be expected to achieve in order to receive


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    CS for CS for SB 2728                          Third Engrossed



 1  payments from the fund and penalties or sanctions for failure

 2  to meet or maintain performance conditions.

 3         (l)  For a research and development facility project:

 4         1.  A description of the extent to which the project

 5  has the potential to serve as catalyst for an emerging or

 6  evolving cluster.

 7         2.  A description of the extent to which the project

 8  has or could have a long-term collaborative research and

 9  development relationship with one or more universities or

10  community colleges in this state.

11         3.  A description of the existing or projected impact

12  of the project on established clusters or targeted industry

13  sectors.

14         4.  A description of the project's contribution to the

15  diversity and resiliency of the innovation economy of this

16  state.

17         5.  A description of the project's impact on

18  special-needs communities, including, but not limited to,

19  rural areas, distressed urban areas, and enterprise zones.

20         (6)  In consultation with Enterprise Florida, Inc., the

21  office may negotiate the proposed amount of an award for any

22  applicant meeting the requirements of this section. In

23  negotiating such award, the office shall consider the amount

24  of the incentive needed to cause the applicant to locate or

25  expand in this state in conjunction with other relevant

26  applicant impact and cost information and analysis as

27  described in this section. Particular emphasis shall be given

28  to the potential for the project to stimulate additional

29  private investment and high-quality employment opportunities

30  in the area.

31  


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    CS for CS for SB 2728                          Third Engrossed



 1         (7)  Upon receipt of the evaluation and recommendation

 2  from Enterprise Florida, Inc., the director shall recommend to

 3  the Governor the approval or disapproval of an award. In

 4  recommending approval of an award, the director shall include

 5  proposed performance conditions that the applicant must meet

 6  in order to obtain incentive funds and any other conditions

 7  that must be met before the receipt of any incentive funds.

 8  The Governor shall consult with the President of the Senate

 9  and the Speaker of the House of Representatives before giving

10  approval for an award. Upon approval of an award, the

11  Executive Office of the Governor shall release the funds

12  pursuant to the legislative consultation and review

13  requirements set forth in s. 216.177.

14         (8)  Upon approval by the Governor and release of the

15  funds as set forth in subsection (7), the director shall issue

16  a letter certifying the applicant as qualified for an award.

17  The office and the applicant shall enter into an agreement

18  that sets forth the conditions for payment of incentives. The

19  agreement must include the total amount of funds awarded; the

20  performance conditions that must be met to obtain the award or

21  portions of the award, including, but not limited to, net new

22  employment in the state, average wage, and total cumulative

23  investment; demonstration of a baseline of current service and

24  a measure of enhanced capability; the methodology for

25  validating performance; the schedule of payments; and

26  sanctions for failure to meet performance conditions,

27  including any clawback provisions.

28         (9)  Enterprise Florida, Inc., shall assist the office

29  in validating the performance of an innovation business or

30  research and development facility that has received an award.

31  At the conclusion of the innovation incentive award agreement,


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    CS for CS for SB 2728                          Third Engrossed



 1  or its earlier termination, Enterprise Florida, Inc., shall,

 2  within 90 days, report the results of the innovation incentive

 3  award to the Governor, the President of the Senate, and the

 4  Speaker of the House of Representatives.

 5         (10)  Enterprise Florida, Inc., shall develop business

 6  ethics standards based on appropriate best industry practices

 7  which shall be applicable to all award recipients. The

 8  standards shall address ethical duties of business

 9  enterprises, fiduciary responsibilities of management, and

10  compliance with the laws of this state. Enterprise Florida,

11  Inc., may collaborate with the State University System in

12  reviewing and evaluating appropriate business ethics

13  standards. Such standards shall be provided to the Governor,

14  the President of the Senate, and the Speaker of the House of

15  Representatives by December 31, 2006. An award agreement

16  entered into on or after December 31, 2006, shall require a

17  recipient to comply with the business ethics standards

18  developed pursuant to this section.

19         Section 4.  Section 288.1171, Florida Statutes, is

20  created to read:

21         288.1171  Qualified job-training organizations;

22  certification; duties.--

23         (1)  As used in this section, the term "qualified

24  job-training organization" means an organization that

25  satisfies all of the following:

26         (a)  Is accredited by the Commission for Accreditation

27  of Rehabilitation Facilities.

28         (b)  Collects Florida state sales tax.

29         (c)  Operates statewide and has more than 100 locations

30  within the state.

31  


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    CS for CS for SB 2728                          Third Engrossed



 1         (d)  Is exempt from income taxation under s. 501(c)3 or

 2  s. 501(c)4 of the Internal Revenue Code of 1986, as amended.

 3         (e)  Specializes in the retail sale of donated items.

 4         (f)  Provides job training and employment services to

 5  individuals who have workplace disadvantages and disabilities.

 6         (g)  Uses a majority of its revenues for job training

 7  and placement programs that create jobs and foster economic

 8  development.

 9         (2)  To be eligible for funding, an organization must

10  be certified by the Office of Tourism, Trade, and Economic

11  Development as meeting the criteria in subsection (1). After

12  certification, the Office of Tourism, Trade, and Economic

13  Development may release funds to the qualified job training

14  organization pursuant to a contract with the organization. The

15  contract must include the performance conditions that must be

16  met in order to obtain the award or portions of the award,

17  including, but not limited to, net new employment in the

18  state, the methodology for validating performance, the

19  schedule of payments, and sanctions for failure to meet the

20  performance requirements including any provisions for

21  repayment of awards. The contract must also require that

22  salaries paid to officers and employees of the qualified job

23  training organization comply with s. 4958 of the Internal

24  Revenue Code of 1986, as amended.

25         (3)  A qualified job-training organization that is

26  certified must use the proceeds provided solely to encourage

27  and provide economic development through capital construction,

28  improvements, or the purchase of equipment that will result in

29  expanded employment opportunities. Proceeds provided under

30  this section for a qualified job training organization must

31  result, within a 10-year period, in:


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    CS for CS for SB 2728                          Third Engrossed



 1         (a)  The creation of at least 5,000 direct, new jobs.

 2         (b)  A minimum of 23,000 new clients served.

 3         (c)  The production of a minimum of $24 million in new

 4  sales tax revenues from increased sales.

 5         (d)  A minimum of $42 million in new salaries.

 6         (e)  A minimum of $6 million for job placement

 7  services.

 8         (4)  The failure to use the proceeds as required

 9  constitutes grounds for revoking certification.

10         Section 5.  Paragraph (e) of subsection (2) of section

11  288.0655, Florida Statutes, is amended to read:

12         288.0655  Rural Infrastructure Fund.--

13         (2)

14         (e)  To enable local governments to access the

15  resources available pursuant to s. 403.973(19)(18) , the

16  office may award grants for surveys, feasibility studies, and

17  other activities related to the identification and

18  preclearance review of land which is suitable for preclearance

19  review. Authorized grants under this paragraph shall not

20  exceed $75,000 each, except in the case of a project in a

21  rural area of critical economic concern, in which case the

22  grant shall not exceed $300,000. Any funds awarded under this

23  paragraph must be matched at a level of 50 percent with local

24  funds, except that any funds awarded for a project in a rural

25  area of critical economic concern must be matched at a level

26  of 33 percent with local funds. In evaluating applications

27  under this paragraph, the office shall consider the extent to

28  which the application seeks to minimize administrative and

29  consultant expenses.

30         Section 6.  Subsections (16) through (19) of section

31  403.973, Florida Statutes, are renumbered as subsections (17)


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    CS for CS for SB 2728                          Third Engrossed



 1  through (20), respectively, and a new subsection (16) is added

 2  to that section, to read:

 3         403.973  Expedited permitting; comprehensive plan

 4  amendments.--

 5         (16)  The office, working with the agencies

 6  participating in the memoranda of agreement, shall review

 7  sites proposed for the location of facilities eligible for the

 8  Innovation Incentive Program under s. 288.1089. Within 20 days

 9  after the request for the review by the office, the agencies

10  shall provide to the office a statement as to each site's

11  necessary permits under local, state, and federal law and an

12  identification of significant permitting issues, which if

13  unresolved, may result in the denial of an agency permit or

14  approval or any significant delay caused by the permitting

15  process.

16         Section 7.  Subsection (6) of section 624.509, Florida

17  Statutes, is amended to read:

18         624.509  Premium tax; rate and computation.--

19         (6)(a)  The total of the credit granted for the taxes

20  paid by the insurer under chapters 220 and 221 and the credit

21  granted by subsection (5) shall not exceed 65 percent of the

22  tax due under subsection (1) after deducting therefrom the

23  taxes paid by the insurer under ss. 175.101 and 185.08 and any

24  assessments pursuant to s. 440.51.

25         (b)  To the extent that any credits granted by

26  subsection (5) remain as a result of the limitation set forth

27  in paragraph (a), such excess credits related to salaries and

28  wages of employees whose place of employment is located within

29  an enterprise zone created pursuant to chapter 290 may be

30  transferred, in an aggregate amount not to exceed 25 percent

31  of such excess salary credits, to any insurer that is a member


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    CS for CS for SB 2728                          Third Engrossed



 1  of an affiliated group of corporations, as defined in

 2  sub-subparagraph (5)(b)4.a., that includes the original

 3  insurer qualifying for the credits under subsection (5). The

 4  amount of such excess credits to be transferred shall be

 5  calculated by multiplying the amount of such excess credits by

 6  a fraction, the numerator of which is the sum of the salaries

 7  qualifying for the credit allowed by subsection (5) of

 8  employees whose place of employment is located in an

 9  enterprise zone and the denominator of which is the sum of the

10  salaries qualifying for the credit allowed by subsection (5).

11  Any such transferred credits shall be subject to the same

12  provisions and limitations set forth within part IV of this

13  chapter. The provisions of this paragraph do not apply to an

14  affiliated group of corporations that participate in a common

15  paymaster arrangement as defined in s. 443.1216.

16         Section 8.  For the 2006-2007 fiscal year, the sum of

17  $45 million is appropriated from the General Revenue Fund to

18  the Office of Tourism, Trade, and Economic Development within

19  the Executive Office of the Governor to fund the Quick Action

20  Closing Fund as authorized in s. 288.1088, Florida Statutes.

21  These funds shall be placed in reserve by the Executive Office

22  of the Governor on July 1, 2006. The Office of Tourism, Trade,

23  and Economic Development may request the release of funds as

24  needed to implement the provisions of s. 288.1088, Florida

25  Statutes, through the Legislative Budget Commission.

26         Section 9.  For the 2006-2007 fiscal year, the sum of

27  $200 million is appropriated from the General Revenue Fund for

28  transfer to the Economic Development Trust Fund within the

29  Office of Tourism, Trade, and Economic Development. Funds

30  transferred under this section are not subject to the service

31  charge set forth in s. 215.20, Florida Statutes. The sum of


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    CS for CS for SB 2728                          Third Engrossed



 1  $200 million is appropriated for the 2006-2007 fiscal year

 2  from the Economic Development Trust Fund within the Office of

 3  Tourism, Trade, and Economic Development to be used to

 4  implement this act. These funds in the Economic Development

 5  Trust Fund shall be placed in reserve by the Executive Office

 6  of the Governor on July 1, 2006. The Office of Tourism, Trade,

 7  and Economic Development may request the release of funds as

 8  needed to implement the provisions of this act through the

 9  Legislative Budget Commission. Funds not expended during the

10  2006-2007 fiscal year may be used in future fiscal years as

11  appropriated in the General Appropriations Act or other law.

12         Section 10.  This act shall take effect July 1, 2006.

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