| 1 | The Economic Development, Trade & Banking Committee recommends |
| 2 | the following: |
| 3 |
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| 4 | Council/Committee Substitute |
| 5 | Remove the entire bill and insert: |
| 6 | A bill to be entitled |
| 7 | An act relating to enterprise zone incentives to serve the |
| 8 | uninsured; amending s. 212.08, F.S.; providing for an |
| 9 | exemption by refund from the tax on sales, use, and other |
| 10 | transactions of certain medical equipment or supplies |
| 11 | purchased and used by certain health care facilities |
| 12 | located in enterprise zones; providing a limitation; |
| 13 | providing application requirements; providing procedures |
| 14 | and limitations for the refund; providing duties of a |
| 15 | local governing body or enterprise zone development |
| 16 | agency; providing duties of the Department of Revenue; |
| 17 | requiring the department to adopt rules; providing for |
| 18 | return of the refund under certain circumstances; |
| 19 | requiring the department to deduct a portion of refunds |
| 20 | from amounts to be transferred into a certain trust fund |
| 21 | and deposit such amount into the General Revenue Fund; |
| 22 | providing definitions; providing for expiration under |
| 23 | certain circumstances; amending s. 290.0056, F.S.; |
| 24 | expanding the list of entities from which appointments may |
| 25 | be made to an enterprise zone development agency's board |
| 26 | of commissioners; providing an additional requirement for |
| 27 | the membership of an enterprise zone development agency |
| 28 | board of commissioners under certain circumstances; |
| 29 | providing a limitation; providing an effective date. |
| 30 |
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| 31 | Be It Enacted by the Legislature of the State of Florida: |
| 32 |
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| 33 | Section 1. Paragraph (r) is added to subsection (5) of |
| 34 | section 212.08, Florida Statutes, to read: |
| 35 | 212.08 Sales, rental, use, consumption, distribution, and |
| 36 | storage tax; specified exemptions.--The sale at retail, the |
| 37 | rental, the use, the consumption, the distribution, and the |
| 38 | storage to be used or consumed in this state of the following |
| 39 | are hereby specifically exempt from the tax imposed by this |
| 40 | chapter. |
| 41 | (5) EXEMPTIONS; ACCOUNT OF USE.-- |
| 42 | (r) Medical equipment and supplies used in an enterprise |
| 43 | zone.-- |
| 44 | 1. Medical equipment and supplies purchased for use by |
| 45 | health care facilities that serve uninsured patients located in |
| 46 | an enterprise zone which are subsequently used in an enterprise |
| 47 | zone are exempt. This exemption inures to the health care |
| 48 | facility only through a refund of previously paid taxes. A |
| 49 | refund shall be authorized upon an affirmative showing by the |
| 50 | taxpayer to the satisfaction of the department that the |
| 51 | requirements of this paragraph have been met. |
| 52 | 2. To receive a refund, the health care facility must file |
| 53 | under oath with the governing body or enterprise zone |
| 54 | development agency having jurisdiction over the enterprise zone |
| 55 | in which the health care facility is located, as applicable, an |
| 56 | application which includes: |
| 57 | a. The name and address of the health care facility |
| 58 | claiming the refund. |
| 59 | b. The identifying number assigned pursuant to s. 290.0065 |
| 60 | to the enterprise zone in which the health care facility is |
| 61 | located. |
| 62 | c. A specific description of the medical equipment for |
| 63 | which a refund is sought, including the serial numbers or other |
| 64 | permanent identification numbers of the equipment. |
| 65 | d. A specific description of the medical supplies for |
| 66 | which a refund is sought, including the serial or lot numbers or |
| 67 | other numbers identifying the purchased supplies. |
| 68 | e. The sales invoice or other proof of purchase of the |
| 69 | medical equipment or supplies, showing the amount of sales tax |
| 70 | paid, the date of purchase, and the name and address of the |
| 71 | sales tax dealer from whom the medical equipment or supplies |
| 72 | were purchased. |
| 73 | f. A statement that the health care facility serves |
| 74 | uninsured patients. |
| 75 | g. A statement defining the taxpayer's taxable year. |
| 76 | 3. Within 10 working days after receipt of an application, |
| 77 | the governing body or enterprise zone development agency shall |
| 78 | review the application to determine if the application contains |
| 79 | all the information required pursuant to subparagraph 2. and |
| 80 | meets the criteria set out in this paragraph. The governing body |
| 81 | or agency shall certify all applications that contain the |
| 82 | information required pursuant to subparagraph 2. and that meet |
| 83 | the criteria set out in this paragraph as eligible to receive a |
| 84 | refund. The certification shall be in writing and a copy of the |
| 85 | certification shall be transmitted to the executive director of |
| 86 | the Department of Revenue. The health care facility shall be |
| 87 | responsible for forwarding a certified application to the |
| 88 | department within the time specified in subparagraph 4. |
| 89 | 4. An application for a refund pursuant to this paragraph |
| 90 | must be submitted to the department within 6 months after the |
| 91 | close of the taxable year during which the eligible medical |
| 92 | equipment or supplies were purchased. |
| 93 | 5. The provisions of s. 212.095 do not apply to any refund |
| 94 | application made pursuant to this paragraph. This exemption |
| 95 | shall apply to the first $500,000 of taxable medical equipment |
| 96 | or supplies purchased by a health care facility and used in the |
| 97 | facility in any taxable year. A refund may not be granted under |
| 98 | this paragraph unless the amount to be refunded exceeds $100 in |
| 99 | sales tax paid on purchases made within a 60-day time period. A |
| 100 | refund may not be granted under this paragraph for medical |
| 101 | equipment or supplies eligible for exemption pursuant to |
| 102 | subsection (2) or eligible for a refund pursuant to paragraph |
| 103 | (h). |
| 104 | 6. The department shall adopt rules governing the manner |
| 105 | and form of refund applications and may establish guidelines as |
| 106 | to the requisites for an affirmative showing of qualification |
| 107 | for exemption under this paragraph. |
| 108 | 7. If the department determines that the medical equipment |
| 109 | or supplies are used outside an enterprise zone within 3 years |
| 110 | from the date of purchase, the amount of taxes refunded to the |
| 111 | health care facility purchasing such medical equipment or |
| 112 | supplies shall immediately be due and payable to the department |
| 113 | by the health care facility, together with the appropriate |
| 114 | interest and penalty, computed from the date of purchase, in the |
| 115 | manner provided by this chapter. Notwithstanding this |
| 116 | subparagraph, a health care facility may dispose of disposable |
| 117 | supplies according to law. |
| 118 | 8. The department shall deduct an amount equal to 10 |
| 119 | percent of each refund granted under this paragraph from the |
| 120 | amount to be transferred into the Local Government Half-cent |
| 121 | Sales Tax Clearing Trust Fund pursuant to s. 212.20 for the |
| 122 | county area in which the medical equipment or supplies are |
| 123 | located and shall deposit that amount into the General Revenue |
| 124 | Fund. |
| 125 | 9. For purposes of this exemption, the term: |
| 126 | a. "Medical equipment" means durable medical equipment |
| 127 | that can be used repeatedly and that serves a medical purpose in |
| 128 | the diagnosis, treatment, or care of an individual. |
| 129 | b. "Medical supplies" means items that are consumable, |
| 130 | expendable, disposable or nondurable, and that serve a medical |
| 131 | purpose in the diagnosis, treatment, or care of an individual. |
| 132 | c. "Health care facility" means a facility licensed |
| 133 | pursuant to chapter 395 or a county health department, a |
| 134 | children's medical services program, a federally qualified |
| 135 | health center, a federally funded migrant health center, a rural |
| 136 | clinic, or any other publicly funded community health program |
| 137 | and any other programs designated by the Department of Health as |
| 138 | a community health center that provide primary care services to |
| 139 | the uninsured. |
| 140 | 10. This paragraph expires on the date specified in s. |
| 141 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
| 142 | Section 2. Subsection (2) and paragraph (a) of subsection |
| 143 | (9) of section 290.0056, Florida Statutes, are amended to read: |
| 144 | 290.0056 Enterprise zone development agency.-- |
| 145 | (2) When the governing body creates an enterprise zone |
| 146 | development agency, that body shall appoint a board of |
| 147 | commissioners of the agency, which shall consist of not fewer |
| 148 | than 8 or more than 13 commissioners. The governing body may |
| 149 | appoint at least one representative from each of the following: |
| 150 | the local chamber of commerce; local financial or insurance |
| 151 | entities; local businesses and, where possible, businesses |
| 152 | operating within the nominated area; the residents residing |
| 153 | within the nominated area; nonprofit community-based |
| 154 | organizations operating within the nominated area; health care |
| 155 | facilities operating within the nominated area; the regional |
| 156 | workforce board; the local code enforcement agency; and the |
| 157 | local law enforcement agency. One of the commissioners on the |
| 158 | board may be employed in the health care field, provided such |
| 159 | requirement applies only when a position on the board becomes |
| 160 | vacant after July 1, 2007, and appointment of a new commissioner |
| 161 | is required to fill the vacancy or an additional member is to be |
| 162 | appointed after July 1, 2007. The terms of office of the |
| 163 | commissioners shall be for 4 years, except that, in making the |
| 164 | initial appointments, the governing body shall appoint two |
| 165 | members for terms of 3 years, two members for terms of 2 years, |
| 166 | and one member for a term of 1 year; the remaining initial |
| 167 | members shall serve for terms of 4 years. A vacancy occurring |
| 168 | during a term shall be filled for the unexpired term. The |
| 169 | importance of including individuals from the nominated area |
| 170 | shall be considered in making appointments. Further, the |
| 171 | importance of minority representation on the agency shall be |
| 172 | considered in making appointments so that the agency generally |
| 173 | reflects the gender and ethnic composition of the community as a |
| 174 | whole. |
| 175 | (9) The following powers and responsibilities shall be |
| 176 | performed by the governing body creating the enterprise zone |
| 177 | development agency acting as the managing agent of the |
| 178 | enterprise zone development agency, or, contingent upon approval |
| 179 | by such governing body, such powers and responsibilities shall |
| 180 | be performed by the enterprise zone development agency: |
| 181 | (a) To review, process, and certify applications for state |
| 182 | enterprise zone tax incentives pursuant to ss. 212.08(5)(g), |
| 183 | (h), (r), and (15); 212.096; 220.181; and 220.182. |
| 184 | Section 3. This act shall take effect January 1, 2007. |