HB 1503

1
A bill to be entitled
2An act relating to super enterprise zones; amending s.
3212.02, F.S.; providing a definition; providing for future
4repeal; amending s. 212.08, F.S.; exempting certain
5property purchased for use or consumption by businesses in
6a super enterprise zone and retail sales by certified
7businesses in a super enterprise zone; providing an
8exception; specifying time periods for application of the
9exemptions for certain businesses; providing for future
10repeal; amending s. 290.0056, F.S.; providing additional
11responsibilities of an enterprise zone development agency
12relating to super enterprise zones; requiring an economic
13impact report; providing for future repeal; amending s.
14290.0057, F.S.; applying requirements for an enterprise
15zone development plan to super enterprise zones; providing
16for future deletion of application; creating s. 290.00681,
17F.S.; authorizing the Office of Tourism, Trade, and
18Economic Development to designate certain areas as super
19enterprise zones for a certain time period; providing
20qualification and eligibility criteria; providing
21application requirements; providing for future repeal and
22revocation of designations; creating s. 290.00682, F.S.;
23providing requirements for qualification as a certified
24business for sales tax exemption purposes; authorizing a
25local enterprise zone development agency to certify
26businesses; requiring the agency to provide lists of
27certified businesses; providing for disqualifying
28certified businesses under certain circumstances;
29providing for future repeal and revocation of
30certifications; amending s. 290.007, F.S.; specifying
31incentives for revitalization of super enterprise zones;
32providing for future deletion of such incentives;
33requiring interim and final reviews of super enterprise
34zones by the Office of Program Policy Analysis and
35Government Accountability; providing review of criteria;
36requiring reports to the Legislature; providing effective
37dates.
38
39Be It Enacted by the Legislature of the State of Florida:
40
41     Section 1.  Subsection (34) is added to section 212.02,
42Florida Statutes, to read:
43     212.02  Definitions.--The following terms and phrases when
44used in this chapter have the meanings ascribed to them in this
45section, except where the context clearly indicates a different
46meaning:
47     (34)  "Certified business" means a business located in a
48super enterprise zone that is certified under s. 290.00682. This
49subsection is repealed June, 30, 2020.
50     Section 2.  Subsection (19) is added to section 212.08,
51Florida Statutes, to read:
52     212.08  Sales, rental, use, consumption, distribution, and
53storage tax; specified exemptions.--The sale at retail, the
54rental, the use, the consumption, the distribution, and the
55storage to be used or consumed in this state of the following
56are hereby specifically exempt from the tax imposed by this
57chapter.
58     (19)  EXEMPTIONS; SUPER ENTERPRISE ZONES.--
59     (a)  The tax imposed by this chapter under ss. 212.05 and
60212.055 does not apply to:
61     1.  Tangible personal property purchased by certified
62businesses for the exclusive use or consumption of such
63businesses within a super enterprise zone; or
64     2.  Retail sales made by a certified business from a place
65of business owned or leased and regularly operated by the
66business for the purpose of making retail sales and located in a
67designated super enterprise zone. The exemption provided by this
68subparagraph does not apply to the retail sale of any item with
69a price greater than $1,000. To qualify for the exemption under
70this subparagraph, the sale must be made at the location of the
71business; however, the item may be shipped to any location.
72     (b)  Notwithstanding paragraph (a), a new business
73established in a super enterprise zone and certified on or after
74July 1, 2008, pursuant to s. 290.00682 is eligible for the
75exemptions provided under this subsection for a period not to
76exceed 10 years immediately following such certification. For an
77existing business located in a super enterprise zone and
78certified on or after July 1, 2008, the exemptions provided
79under this subsection shall be available for a period not to
80exceed 5 years, beginning in the year in which the business
81receives its initial certification and continuing for up to 5
82years immediately following such certification.
83     (c)  This subsection is repealed June 30, 2020.
84     Section 3.  Paragraph (i) is added to subsection (8) of
85section 290.0056, Florida Statutes, paragraph (f) of subsection
86(11) of that section is redesignated as paragraph (g), and a new
87paragraph (f) is added to that subsection, to read:
88     290.0056  Enterprise zone development agency.--
89     (8)  The enterprise zone development agency shall have the
90following powers and responsibilities:
91     (i)1.  To recommend and submit an application to the office
92for the designation of a super enterprise zone.
93     2.  To coordinate with the local governmental entity for
94the exemptions from the sales and use tax provided under s.
95212.08(19).
96
97This paragraph is repealed June 30, 2020.
98     (11)  Prior to December 1 of each year, the agency shall
99submit to the Office of Tourism, Trade, and Economic Development
100a complete and detailed written report setting forth:
101     (f)  The economic impact of a super enterprise zone, if
102applicable, including:
103     1.  A list of certified businesses and whether the business
104is new or where the business relocated from.
105     2.  The number of jobs created.
106     3.  The percentage of employees employed by certified
107businesses who reside in the super enterprise zone or in an
108enterprise zone within the same county.
109     4.  The extent of capital investment by certified
110businesses within the zone.
111     5.  The success of the super enterprise zone as measured by
112the strategic plan and methods identified in s. 290.0057(1)(i).
113
114This paragraph is repealed June 30, 2020.
115     Section 4.  Subsection (1) of section 290.0057, Florida
116Statutes, is amended to read:
117     290.0057  Enterprise zone development plan.--
118     (1)  Any application for designation as a new enterprise
119zone or super enterprise zone must be accompanied by a strategic
120plan adopted by the governing body of the municipality or
121county, or the governing bodies of the county and one or more
122municipalities together. At a minimum, the plan must:
123     (a)  Briefly describe the community's goals for
124revitalizing the area.
125     (b)  Describe the ways in which the community's approaches
126to economic development, social and human services,
127transportation, housing, community development, public safety,
128and educational and environmental concerns will be addressed in
129a coordinated fashion, and explain how these linkages support
130the community's goals.
131     (c)  Identify and describe key community goals and the
132barriers that restrict the community from achieving these goals,
133including a description of poverty and general distress,
134barriers to economic opportunity and development, and barriers
135to human development.
136     (d)  Describe the process by which the affected community
137is a full partner in the process of developing and implementing
138the plan and the extent to which local institutions and
139organizations have contributed to the planning process.
140     (e)  Commit the governing body or bodies to enact and
141maintain local fiscal and regulatory incentives, if approval for
142the area is received under s. 290.0065. These incentives may
143include the municipal public service tax exemption provided by
144s. 166.231, the economic development ad valorem tax exemption
145provided by s. 196.1995, the occupational license tax exemption
146provided by s. 205.054, local impact fee abatement or reduction,
147or low-interest or interest-free loans or grants to businesses
148to encourage the revitalization of the nominated area.
149     (f)  Identify the amount of local and private resources
150that will be available in the nominated area and the
151private/public partnerships to be used, which may include
152participation by, and cooperation with, universities, community
153colleges, small business development centers, black business
154investment corporations, certified development corporations, and
155other private and public entities.
156     (g)  Indicate how state enterprise zone tax incentives and
157state, local, and federal resources will be utilized within the
158nominated area.
159     (h)  Identify the funding requested under any state or
160federal program in support of the proposed economic, human,
161community, and physical development and related activities.
162     (i)  Identify baselines, methods, and benchmarks for
163measuring the success of carrying out the strategic plan.
164     Section 5.  Effective July 1, 2020, subsection (1) of
165section 290.0057, Florida Statutes, as amended by this act, is
166amended to read:
167     290.0057  Enterprise zone development plan.--
168     (1)  Any application for designation as a new enterprise
169zone or super enterprise zone must be accompanied by a strategic
170plan adopted by the governing body of the municipality or
171county, or the governing bodies of the county and one or more
172municipalities together. At a minimum, the plan must:
173     (a)  Briefly describe the community's goals for
174revitalizing the area.
175     (b)  Describe the ways in which the community's approaches
176to economic development, social and human services,
177transportation, housing, community development, public safety,
178and educational and environmental concerns will be addressed in
179a coordinated fashion, and explain how these linkages support
180the community's goals.
181     (c)  Identify and describe key community goals and the
182barriers that restrict the community from achieving these goals,
183including a description of poverty and general distress,
184barriers to economic opportunity and development, and barriers
185to human development.
186     (d)  Describe the process by which the affected community
187is a full partner in the process of developing and implementing
188the plan and the extent to which local institutions and
189organizations have contributed to the planning process.
190     (e)  Commit the governing body or bodies to enact and
191maintain local fiscal and regulatory incentives, if approval for
192the area is received under s. 290.0065. These incentives may
193include the municipal public service tax exemption provided by
194s. 166.231, the economic development ad valorem tax exemption
195provided by s. 196.1995, the occupational license tax exemption
196provided by s. 205.054, local impact fee abatement or reduction,
197or low-interest or interest-free loans or grants to businesses
198to encourage the revitalization of the nominated area.
199     (f)  Identify the amount of local and private resources
200that will be available in the nominated area and the
201private/public partnerships to be used, which may include
202participation by, and cooperation with, universities, community
203colleges, small business development centers, black business
204investment corporations, certified development corporations, and
205other private and public entities.
206     (g)  Indicate how state enterprise zone tax incentives and
207state, local, and federal resources will be utilized within the
208nominated area.
209     (h)  Identify the funding requested under any state or
210federal program in support of the proposed economic, human,
211community, and physical development and related activities.
212     (i)  Identify baselines, methods, and benchmarks for
213measuring the success of carrying out the strategic plan.
214     Section 6.  Sections 290.00681 and 290.00682, Florida
215Statutes, are created to read:
216     290.00681  Super enterprise zones; designation;
217eligibility.--
218     (1)  The office may designate up to five areas in the state
219as super enterprise zones for a 10-year period. To qualify as a
220super enterprise zone an area shall:
221     (a)  Be located in an enterprise zone and be no larger than
2223 contiguous square miles.
223     (b)  Have an average unemployment rate four times greater
224than the state average.
225     (c)  Have a minimum of 40 percent of residents living below
226poverty level.
227     (d)  Have general distress of business and residential
228property such that the local governing body by resolution has
229determined that the buildings are substandard, unsafe,
230unsanitary, dilapidated, or obsolete, or any combination of such
231conditions, and are detrimental to the safety, health, and
232welfare of the community.
233     (e)  Demonstrate evidence of significant job loss or
234dislocation in the area.
235     (2)  When determining eligibility for a super enterprise
236zone, the office shall consider the following criteria:
237     (a)  Priority to applications that include new business
238activity.
239     (b)  Evidence of adverse economic and socioeconomic
240conditions in that area.
241     (c)  The viability of the development plan.
242     (d)  Whether the development plan is creative and
243innovative.
244     (e)  Public and private commitment to and other resources
245available for the proposed super enterprise zone.
246     (f)  How a super enterprise tax-free zone would relate to a
247broader plan for the community as a whole.
248     (g)  The level of demonstrated cooperation from surrounding
249communities.
250     (h)  How the local regulatory burden will be eased for
251businesses operating in the proposed super enterprise zone.
252     (i)  Public and private commitment to improving abandoned
253real property.
254     (j)  Whether sufficient infrastructure is available to
255support development.
256     (3)  Any application for designation as a super enterprise
257zone must:
258     (a)  Briefly describe the community's goals for
259revitalizing the area and include a development plan.
260     (b)  Describe the ways in which the community's approach to
261economic development, social and human services, transportation,
262housing, community development, public safety, and educational
263and environmental concerns will be addressed in a coordinated
264fashion and explain how these linkages support the community's
265goals.
266     (c)  Identify and describe key community goals and the
267barriers that restrict the community from achieving these goals.
268     (d)  Identify the amount of local and private support and
269resources that will be available.
270     (e)  Identify baselines, methods, and benchmarks for
271measuring success.
272     (f)  Include written approval from any associated county
273office and mayor's office.
274     (4)  This section is repealed June 30, 2020, and any
275designation made pursuant to this section shall be revoked on
276that date.
277     290.00682  Super enterprise zones; business
278certification.--
279     (1)  A certified business is eligible for the tax
280exemptions provided in s. 212.08(19). To qualify as a certified
281business, receive an exemption certificate, and continue to
282receive the tax exemptions provided in s. 212.08(19), a business
283must:
284     (a)  File an application for certification with the local
285enterprise zone development agency. The application shall be
286filed no later than September 1 preceding the calendar year for
287which the business is seeking an exemption.
288     (b)  Operate and be primarily located within a designated
289super enterprise zone.
290     (c)  Create new employment within the super enterprise zone
291while not causing unemployment elsewhere in the state.
292     (d)  Have no outstanding federal or state tax obligations.
293     (e)  Demonstrate that no less than 20 percent of its
294employees are residents of the designated super enterprise zone
295or an enterprise zone located within the same county. The
296employment requirement may be waived by the local enterprise
297zone development agency for good cause.
298     (2)  A local enterprise zone development agency may certify
299a business as eligible for the exemptions under s. 212.08(19)
300annually if the business meets the requirements in subsection
301(1). Each local enterprise zone development agency shall
302annually provide the local governmental entity, the office, and
303the Department of Revenue with a list of new and existing
304certified businesses. The Department of Revenue shall annually
305issue a tax exemption certificate to each business holding an
306exemption certificate issued by the local enterprise zone
307development agency. The certificate shall be good for one
308calendar year.
309     (3)  A local enterprise zone development agency or the
310Department of Revenue may disqualify a certified business at any
311time if the business fails to meet the requirements of
312subsection (1). A business that makes a fraudulent claim under
313this section shall be liable for the payment of the tax due,
314together with the penalties set forth in s. 212.085, and as
315otherwise provided by law.
316     (4)  This section is repealed June 30, 2020, and any
317certification made pursuant to this section shall be revoked on
318that date.
319     Section 7.  Section 290.007, Florida Statutes, is amended
320to read:
321     290.007  State incentives available in enterprise zones and
322super enterprise zones.--
323     (1)  The following incentives are provided by the state to
324encourage the revitalization of enterprise zones:
325     (a)(1)  The enterprise zone jobs credit provided in s.
326220.181.
327     (b)(2)  The enterprise zone property tax credit provided in
328s. 220.182.
329     (c)(3)  The community contribution tax credits provided in
330ss. 212.08, 220.183, and 624.5105.
331     (d)(4)  The sales tax exemption for building materials used
332in the rehabilitation of real property in enterprise zones
333provided in s. 212.08(5)(g).
334     (e)(5)  The sales tax exemption for business equipment used
335in an enterprise zone provided in s. 212.08(5)(h).
336     (f)(6)  The sales tax exemption for electrical energy used
337in an enterprise zone provided in s. 212.08(15).
338     (g)(7)  The enterprise zone jobs credit against the sales
339tax provided in s. 212.096.
340     (h)(8)  Notwithstanding any law to the contrary, the Public
341Service Commission may allow public utilities and
342telecommunications companies to grant discounts of up to 50
343percent on tariffed rates for services to small businesses
344located in an enterprise zone designated pursuant to s.
345290.0065. Such discounts may be granted for a period not to
346exceed 5 years. For purposes of this paragraph subsection, the
347term "public utility" has the same meaning as in s. 366.02(1)
348and the term "telecommunications company" has the same meaning
349as in s. 364.02(14).
350     (2)  The following incentives are provided by the state to
351encourage the revitalization of super enterprise zones:
352     (a)  The sales tax exemption for certified businesses
353provided in s. 212.08(19)(a)1.
354     (b)  The sales tax exemption for retail sales by certified
355businesses provided in s. 212.08(19)(a)2.
356     Section 8.  Effective July 1, 2020, section 290.007,
357Florida Statutes, as amended by this act, is amended to read:
358     290.007  State incentives available in enterprise zones and
359super enterprise zones.--
360     (1)  The following incentives are provided by the state to
361encourage the revitalization of enterprise zones:
362     (1)(a)  The enterprise zone jobs credit provided in s.
363220.181.
364     (2)(b)  The enterprise zone property tax credit provided in
365s. 220.182.
366     (3)(c)  The community contribution tax credits provided in
367ss. 212.08, 220.183, and 624.5105.
368     (4)(d)  The sales tax exemption for building materials used
369in the rehabilitation of real property in enterprise zones
370provided in s. 212.08(5)(g).
371     (5)(e)  The sales tax exemption for business equipment used
372in an enterprise zone provided in s. 212.08(5)(h).
373     (6)(f)  The sales tax exemption for electrical energy used
374in an enterprise zone provided in s. 212.08(15).
375     (7)(g)  The enterprise zone jobs credit against the sales
376tax provided in s. 212.096.
377     (8)(h)  Notwithstanding any law to the contrary, the Public
378Service Commission may allow public utilities and
379telecommunications companies to grant discounts of up to 50
380percent on tariffed rates for services to small businesses
381located in an enterprise zone designated pursuant to s.
382290.0065. Such discounts may be granted for a period not to
383exceed 5 years. For purposes of this subsection paragraph, the
384term "public utility" has the same meaning as in s. 366.02(1)
385and the term "telecommunications company" has the same meaning
386as in s. 364.02(14).
387     (2)  The following incentives are provided by the state to
388encourage the revitalization of super enterprise zones:
389     (a)  The sales tax exemption for certified businesses
390provided in s. 212.08(19)(a)1.
391     (b)  The partial sales tax exemption for retail sales by
392certified businesses provided in s. 212.08(19)(a)2.
393     Section 9.  Prior to the 2014 Regular Session of the
394Legislature, the Office of Program Policy Analysis and
395Government Accountability shall conduct an interim review and
396evaluation of the effectiveness and viability of the super
397enterprise zones created under s. 290.00681, Florida Statutes.
398The office shall specifically evaluate whether relief from the
399specified taxes caused or induced new investment and development
400in the super enterprise zone; increased the number of jobs
401created or retained in the super enterprise zone; caused or
402induced the renovation, rehabilitation, restoration,
403improvement, or new construction of businesses or housing within
404the super enterprise zone; or contributed to the economic
405viability and profitability of business and commerce located
406within the super enterprise zone. The office shall submit a
407report of its findings and recommendations to the Speaker of the
408House of Representatives and the President of the Senate no
409later than December 1, 2013. In 2019, the office shall conduct a
410final review in accordance with this section and shall make a
411final report to the President of the Senate and Speaker of the
412House of Representatives no later than December 1, 2019.
413     Section 10.  Except as otherwise expressly provided in this
414act, this act shall take effect July 1, 2007.


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