CS/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.; requiring the Office of Tourism, Trade, and Economic
18Development to designate a specified area in Miami-Dade
19County as a pilot project super enterprise zone for a
20certain time period; providing qualification criteria;
21providing application requirements; providing for future
22repeal and revocation of the designation; creating s.
23290.00682, F.S.; providing requirements for qualification
24as a certified business for sales tax exemption purposes;
25authorizing a local enterprise zone development agency to
26certify businesses; requiring the agency to provide lists
27of certified 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 does not apply to:
60     1.  Tangible personal property purchased by certified
61businesses for the exclusive use or consumption of such
62businesses within a super enterprise zone; or
63     2.  Retail sales of tangible personal property made by a
64certified business from a place of business owned or leased and
65operated by the business for the purpose of making retail sales
66and located in a designated super enterprise zone. The exemption
67provided by this subparagraph does not apply to the retail sale
68of any item with a price greater than $1,000. To qualify for the
69exemption under this subparagraph, the purchaser must take
70possession of the qualified item within the super enterprise
71zone or the qualified item must be shipped from inside the super
72enterprise zone; however, the item may be shipped to any
73location. For the purposes of this section, all qualified sales
74made by a certified business located in a super enterprise zone
75shall be considered to have occurred within the super enterprise
76zone, regardless of where the transfer of title or possession
77takes place.
78     (b)  Notwithstanding paragraph (a), a new business
79established in a super enterprise zone and certified on or after
80July 1, 2008, pursuant to s. 290.00682 is eligible for the
81exemptions provided under this subsection for a period not to
82exceed 10 years immediately following such certification. For an
83existing business located in a super enterprise zone and
84certified on or after July 1, 2008, the exemptions provided
85under this subsection shall be available for a period not to
86exceed 5 years, beginning in the year in which the business
87receives its initial certification and continuing for up to 5
88years immediately following such certification.
89     (c)  This subsection is repealed June 30, 2020.
90     Section 3.  Paragraph (i) is added to subsection (8) of
91section 290.0056, Florida Statutes, paragraph (f) of subsection
92(11) of that section is redesignated as paragraph (g), and a new
93paragraph (f) is added to that subsection, to read:
94     290.0056  Enterprise zone development agency.--
95     (8)  The enterprise zone development agency shall have the
96following powers and responsibilities:
97     (i)1.  To recommend and submit an application to the office
98for the designation of a super enterprise zone.
99     2.  To coordinate with the local governmental entity for
100the exemptions from the sales and use tax provided under s.
101212.08(19).
102
103This paragraph is repealed June 30, 2020.
104     (11)  Prior to December 1 of each year, the agency shall
105submit to the Office of Tourism, Trade, and Economic Development
106a complete and detailed written report setting forth:
107     (f)  The economic impact of a super enterprise zone, if
108applicable, including:
109     1.  A list of certified businesses and whether the business
110is new or where the business relocated from.
111     2.  The number of jobs created.
112     3.  The percentage of employees employed by certified
113businesses who reside in the super enterprise zone or in an
114enterprise zone within the same county.
115     4.  The extent of capital investment by certified
116businesses within the zone.
117     5.  The success of the super enterprise zone as measured by
118the strategic plan and methods identified in s. 290.0057(1)(i).
119
120This paragraph is repealed June 30, 2020.
121     Section 4.  Subsection (1) of section 290.0057, Florida
122Statutes, is amended to read:
123     290.0057  Enterprise zone development plan.--
124     (1)  Any application for designation as a new enterprise
125zone or super enterprise zone must be accompanied by a strategic
126plan adopted by the governing body of the municipality or
127county, or the governing bodies of the county and one or more
128municipalities together. At a minimum, the plan must:
129     (a)  Briefly describe the community's goals for
130revitalizing the area.
131     (b)  Describe the ways in which the community's approaches
132to economic development, social and human services,
133transportation, housing, community development, public safety,
134and educational and environmental concerns will be addressed in
135a coordinated fashion, and explain how these linkages support
136the community's goals.
137     (c)  Identify and describe key community goals and the
138barriers that restrict the community from achieving these goals,
139including a description of poverty and general distress,
140barriers to economic opportunity and development, and barriers
141to human development.
142     (d)  Describe the process by which the affected community
143is a full partner in the process of developing and implementing
144the plan and the extent to which local institutions and
145organizations have contributed to the planning process.
146     (e)  Commit the governing body or bodies to enact and
147maintain local fiscal and regulatory incentives, if approval for
148the area is received under s. 290.0065. These incentives may
149include the municipal public service tax exemption provided by
150s. 166.231, the economic development ad valorem tax exemption
151provided by s. 196.1995, the occupational license tax exemption
152provided by s. 205.054, local impact fee abatement or reduction,
153or low-interest or interest-free loans or grants to businesses
154to encourage the revitalization of the nominated area.
155     (f)  Identify the amount of local and private resources
156that will be available in the nominated area and the
157private/public partnerships to be used, which may include
158participation by, and cooperation with, universities, community
159colleges, small business development centers, black business
160investment corporations, certified development corporations, and
161other private and public entities.
162     (g)  Indicate how state enterprise zone tax incentives and
163state, local, and federal resources will be utilized within the
164nominated area.
165     (h)  Identify the funding requested under any state or
166federal program in support of the proposed economic, human,
167community, and physical development and related activities.
168     (i)  Identify baselines, methods, and benchmarks for
169measuring the success of carrying out the strategic plan.
170     Section 5.  Effective July 1, 2020, subsection (1) of
171section 290.0057, Florida Statutes, as amended by this act, is
172amended to read:
173     290.0057  Enterprise zone development plan.--
174     (1)  Any application for designation as a new enterprise
175zone or super enterprise zone must be accompanied by a strategic
176plan adopted by the governing body of the municipality or
177county, or the governing bodies of the county and one or more
178municipalities together. At a minimum, the plan must:
179     (a)  Briefly describe the community's goals for
180revitalizing the area.
181     (b)  Describe the ways in which the community's approaches
182to economic development, social and human services,
183transportation, housing, community development, public safety,
184and educational and environmental concerns will be addressed in
185a coordinated fashion, and explain how these linkages support
186the community's goals.
187     (c)  Identify and describe key community goals and the
188barriers that restrict the community from achieving these goals,
189including a description of poverty and general distress,
190barriers to economic opportunity and development, and barriers
191to human development.
192     (d)  Describe the process by which the affected community
193is a full partner in the process of developing and implementing
194the plan and the extent to which local institutions and
195organizations have contributed to the planning process.
196     (e)  Commit the governing body or bodies to enact and
197maintain local fiscal and regulatory incentives, if approval for
198the area is received under s. 290.0065. These incentives may
199include the municipal public service tax exemption provided by
200s. 166.231, the economic development ad valorem tax exemption
201provided by s. 196.1995, the occupational license tax exemption
202provided by s. 205.054, local impact fee abatement or reduction,
203or low-interest or interest-free loans or grants to businesses
204to encourage the revitalization of the nominated area.
205     (f)  Identify the amount of local and private resources
206that will be available in the nominated area and the
207private/public partnerships to be used, which may include
208participation by, and cooperation with, universities, community
209colleges, small business development centers, black business
210investment corporations, certified development corporations, and
211other private and public entities.
212     (g)  Indicate how state enterprise zone tax incentives and
213state, local, and federal resources will be utilized within the
214nominated area.
215     (h)  Identify the funding requested under any state or
216federal program in support of the proposed economic, human,
217community, and physical development and related activities.
218     (i)  Identify baselines, methods, and benchmarks for
219measuring the success of carrying out the strategic plan.
220     Section 6.  Sections 290.00681 and 290.00682, Florida
221Statutes, are created to read:
222     290.00681  Super enterprise zone pilot project;
223designation; future repeal and revocation.--
224     (1)  The office shall designate the area in Miami-Dade
225County bordered by Northwest 23rd Street on the North, Northwest
2265th Street on the South, Northeast 1st Avenue on the East, and
227Northwest 8th Avenue on the West as a pilot project for a super
228enterprise zone for a 10-year period. To qualify as a super
229enterprise zone an area must:
230     (a)  Be located in an enterprise zone and be no larger than
2313 contiguous square miles.
232     (b)  Have an average unemployment rate four times greater
233than the state average.
234     (c)  Have a minimum of 40 percent of residents living below
235the federal poverty level.
236     (d)  Have general distress of business and residential
237property such that the local governing body by resolution has
238determined that the buildings are substandard, unsafe,
239unsanitary, dilapidated, or obsolete, or any combination of such
240conditions, and are detrimental to the safety, health, and
241welfare of the community.
242     (e)  Demonstrate evidence of significant job loss or
243dislocation in the area.
244
245In determining whether an area meets the unemployment, poverty,
246and general distress criteria of this subsection, the office
247shall use data from the most current decennial census and from
248information published by the Bureau of the Census and the Bureau
249of Labor Statistics. The data shall be comparable in point or
250period of time and methodology employed.
251     (2)  Any application for designation as a super enterprise
252zone must:
253     (a)  Briefly describe the community's goals for
254revitalizing the area and include a development plan.
255     (b)  Describe the ways in which the community's approach to
256economic development, social and human services, transportation,
257housing, community development, public safety, and educational
258and environmental concerns will be addressed in a coordinated
259fashion and explain how these linkages support the community's
260goals.
261     (c)  Identify and describe key community goals and the
262barriers that restrict the community from achieving these goals.
263     (d)  Identify the amount of local and private support and
264resources that will be available.
265     (e)  Identify baselines, methods, and benchmarks for
266measuring success.
267     (f)  Include written approval from any associated county
268office and mayor's office.
269     (3)  This section is repealed June 30, 2020, and any
270designation made pursuant to this section shall be revoked on
271that date.
272     290.00682  Super enterprise zones; business
273certification.--
274     (1)  A certified business is eligible for the tax
275exemptions provided in s. 212.08(19). To qualify as a certified
276business, receive an exemption certificate, and continue to
277receive the tax exemptions provided in s. 212.08(19), a business
278must:
279     (a)  File an application for certification with the local
280enterprise zone development agency. The application shall be
281filed no later than September 1 preceding the calendar year for
282which the business is seeking an exemption.
283     (b)  Operate and be located within a designated super
284enterprise zone.
285     (c)  Create new employment within the super enterprise zone
286while not causing unemployment elsewhere in the state.
287     (d)  Certify to the best of the business' knowledge that
288the business has no delinquent federal or state tax obligations.
289     (e)  Demonstrate that no less than 20 percent of its
290employees are residents of the designated super enterprise zone
291or an enterprise zone located within the same county. The
292employment requirement may be waived by the local enterprise
293zone development agency for good cause.
294     (2)  A local enterprise zone development agency may certify
295a business as eligible for the exemptions under s. 212.08(19)
296annually if the business meets the requirements in subsection
297(1). Each local enterprise zone development agency shall
298annually provide the local governmental entity, the office, and
299the Department of Revenue with a list of new and existing
300certified businesses. The Department of Revenue shall annually
301issue a tax exemption certificate to each business holding an
302exemption certificate issued by the local enterprise zone
303development agency. The certificate shall be good for one
304calendar year.
305     (3)  A local enterprise zone development agency may
306disqualify a certified business at any time if the business
307fails to meet the requirements of subsection (1). A business
308that makes a fraudulent claim under this section or for tax
309exemptions provided in s. 212.08(19) shall be liable for the
310payment of the tax due, together with the penalties set forth in
311s. 212.085, and as otherwise provided by law.
312     (4)  This section is repealed June 30, 2020, and any
313certification made pursuant to this section shall be revoked on
314that date.
315     Section 7.  Section 290.007, Florida Statutes, is amended
316to read:
317     290.007  State incentives available in enterprise zones and
318super enterprise zones.--
319     (1)  The following incentives are provided by the state to
320encourage the revitalization of enterprise zones:
321     (a)(1)  The enterprise zone jobs credit provided in s.
322220.181.
323     (b)(2)  The enterprise zone property tax credit provided in
324s. 220.182.
325     (c)(3)  The community contribution tax credits provided in
326ss. 212.08, 220.183, and 624.5105.
327     (d)(4)  The sales tax exemption for building materials used
328in the rehabilitation of real property in enterprise zones
329provided in s. 212.08(5)(g).
330     (e)(5)  The sales tax exemption for business equipment used
331in an enterprise zone provided in s. 212.08(5)(h).
332     (f)(6)  The sales tax exemption for electrical energy used
333in an enterprise zone provided in s. 212.08(15).
334     (g)(7)  The enterprise zone jobs credit against the sales
335tax provided in s. 212.096.
336     (h)(8)  Notwithstanding any law to the contrary, the Public
337Service Commission may allow public utilities and
338telecommunications companies to grant discounts of up to 50
339percent on tariffed rates for services to small businesses
340located in an enterprise zone designated pursuant to s.
341290.0065. Such discounts may be granted for a period not to
342exceed 5 years. For purposes of this paragraph subsection, the
343term "public utility" has the same meaning as in s. 366.02(1)
344and the term "telecommunications company" has the same meaning
345as in s. 364.02(14).
346     (2)  The following incentives are provided by the state to
347encourage the revitalization of super enterprise zones:
348     (a)  The sales tax exemption for certified businesses
349provided in s. 212.08(19)(a)1.
350     (b)  The sales tax exemption for retail sales by certified
351businesses provided in s. 212.08(19)(a)2.
352     Section 8.  Effective July 1, 2020, section 290.007,
353Florida Statutes, as amended by this act, is amended to read:
354     290.007  State incentives available in enterprise zones and
355super enterprise zones.--
356     (1)  The following incentives are provided by the state to
357encourage the revitalization of enterprise zones:
358     (1)(a)  The enterprise zone jobs credit provided in s.
359220.181.
360     (2)(b)  The enterprise zone property tax credit provided in
361s. 220.182.
362     (3)(c)  The community contribution tax credits provided in
363ss. 212.08, 220.183, and 624.5105.
364     (4)(d)  The sales tax exemption for building materials used
365in the rehabilitation of real property in enterprise zones
366provided in s. 212.08(5)(g).
367     (5)(e)  The sales tax exemption for business equipment used
368in an enterprise zone provided in s. 212.08(5)(h).
369     (6)(f)  The sales tax exemption for electrical energy used
370in an enterprise zone provided in s. 212.08(15).
371     (7)(g)  The enterprise zone jobs credit against the sales
372tax provided in s. 212.096.
373     (8)(h)  Notwithstanding any law to the contrary, the Public
374Service Commission may allow public utilities and
375telecommunications companies to grant discounts of up to 50
376percent on tariffed rates for services to small businesses
377located in an enterprise zone designated pursuant to s.
378290.0065. Such discounts may be granted for a period not to
379exceed 5 years. For purposes of this subsection paragraph, the
380term "public utility" has the same meaning as in s. 366.02(1)
381and the term "telecommunications company" has the same meaning
382as in s. 364.02(14).
383     (2)  The following incentives are provided by the state to
384encourage the revitalization of super enterprise zones:
385     (a)  The sales tax exemption for certified businesses
386provided in s. 212.08(19)(a)1.
387     (b)  The partial sales tax exemption for retail sales by
388certified businesses provided in s. 212.08(19)(a)2.
389     Section 9.  Prior to the 2014 Regular Session of the
390Legislature, the Office of Program Policy Analysis and
391Government Accountability shall conduct an interim review and
392evaluation of the effectiveness and viability of the super
393enterprise zone designated under s. 290.00681, Florida Statutes.
394The office shall specifically evaluate whether relief from the
395specified taxes caused or induced new investment and development
396in the super enterprise zone; increased the number of jobs
397created or retained in the super enterprise zone; caused or
398induced the renovation, rehabilitation, restoration,
399improvement, or new construction of businesses or housing within
400the super enterprise zone; or contributed to the economic
401viability and profitability of business and commerce located
402within the super enterprise zone. The office shall submit a
403report of its findings and recommendations to the Speaker of the
404House of Representatives and the President of the Senate no
405later than December 1, 2013. In 2019, the office shall conduct a
406final review in accordance with this section and shall make a
407final report to the President of the Senate and Speaker of the
408House of Representatives no later than December 1, 2019.
409     Section 10.  Except as otherwise expressly provided in this
410act, this act shall take effect July 1, 2007.


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