CS/HB 1503

1
A bill to be entitled
2An act relating to enterprise zones; amending s. 290.0065,
3F.S.; authorizing certain counties to apply to the Office
4of Tourism, Trade, and Economic Development to amend the
5boundaries of an existing enterprise zone for certain
6purposes; providing criteria for areas suitable for such
7amendment; requiring the Office of Tourism, Trade, and
8Economic Development to approve the amendment by a
9specified date; excluding such amendments from certain
10restrictions; amending s. 212.02, F.S.; providing a
11definition; providing for future repeal; amending s.
12212.08, F.S.; exempting certain property purchased for use
13or consumption by businesses in a super enterprise zone
14and retail sales by certified businesses in a super
15enterprise zone; providing an exception; specifying time
16periods for application of the exemptions for certain
17businesses; providing for future repeal; amending s.
18290.0056, F.S.; providing additional responsibilities of
19an enterprise zone development agency relating to super
20enterprise zones; requiring an economic impact report;
21providing for future repeal; amending s. 290.0056, F.S.;
22revising powers and responsibilities of the enterprise
23zone development agency; amending s. 290.0057, F.S.;
24applying requirements for an enterprise zone development
25plan to super enterprise zones; providing for future
26deletion of application; creating s. 290.00681, F.S.;
27requiring the Office of Tourism, Trade, and Economic
28Development to designate a specified area in Miami-Dade
29County as a pilot project super enterprise zone for a
30certain time period; providing qualification criteria;
31providing application requirements; providing for future
32repeal and revocation of the designation; creating s.
33290.00682, F.S.; providing requirements for qualification
34as a certified business for sales tax exemption purposes;
35authorizing a local enterprise zone development agency to
36certify businesses; requiring the agency to provide lists
37of certified businesses; providing for disqualifying
38certified businesses under certain circumstances;
39providing for future repeal and revocation of
40certifications; amending s. 290.007, F.S.; specifying
41incentives for revitalization of super enterprise zones;
42providing for future deletion of such incentives;
43requiring interim and final reviews of super enterprise
44zones by the Office of Program Policy Analysis and
45Government Accountability; providing review of criteria;
46requiring reports to the Legislature; providing effective
47dates.
48
49Be It Enacted by the Legislature of the State of Florida:
50
51     Section 1.  Subsection (8) is added to section 290.0065,
52Florida Statutes, to read:
53     290.0065  State designation of enterprise zones.--
54     (8)  Before December 31, 2007, any county as defined in s.
55125.011(1) may apply to the Office of Tourism, Trade, and
56Economic Development to amend the boundaries of an existing
57enterprise zone for the purpose of replacing an area of not more
58than 204 acres which is not suitable for development. The area
59suitable for development must be contiguous to the existing
60enterprise zone and must be part of a community redevelopment
61area that has been approved and targeted for revitalization by
62the county. The area suitable for redevelopment shall be a
63master planned community that is being constructed in accordance
64with an approved conceptual master plan for the development of
65the area. The Office of Tourism, Trade, and Economic Development
66shall approve the amendment effective January 1, 2008, if the
67enterprise zone remains consistent with the criteria and
68conditions imposed by s. 290.0055 upon the establishment of
69enterprise zones, including the requirement that the area suffer
70from pervasive poverty, unemployment, and general distress.
71Notwithstanding the preceding sentence, such amendment to the
72boundaries of the enterprise zone shall not constitute the one
73change to enterprise zone boundaries permitted every 3 years
74pursuant to s. 290.0055(6).
75      Section 2.  Subsection (34) is added to section 212.02,
76Florida Statutes, to read:
77     212.02  Definitions.--The following terms and phrases when
78used in this chapter have the meanings ascribed to them in this
79section, except where the context clearly indicates a different
80meaning:
81     (34)  "Certified business" means a business located in a
82super enterprise zone that is certified under s. 290.00682. This
83subsection is repealed June, 30, 2020.
84     Section 3.  Subsection (19) is added to section 212.08,
85Florida Statutes, to read:
86     212.08  Sales, rental, use, consumption, distribution, and
87storage tax; specified exemptions.--The sale at retail, the
88rental, the use, the consumption, the distribution, and the
89storage to be used or consumed in this state of the following
90are hereby specifically exempt from the tax imposed by this
91chapter.
92     (19)  EXEMPTIONS; SUPER ENTERPRISE ZONES.--
93     (a)  The tax imposed by this chapter does not apply to:
94     1.  Tangible personal property purchased by certified
95businesses for the exclusive use or consumption of such
96businesses within a super enterprise zone; or
97     2.  Retail sales of tangible personal property made by a
98certified business from a place of business owned or leased and
99operated by the business for the purpose of making retail sales
100and located in a designated super enterprise zone. The exemption
101provided by this subparagraph does not apply to the retail sale
102of any item with a price greater than $1,000. To qualify for the
103exemption under this subparagraph, the purchaser must take
104possession of the qualified item within the super enterprise
105zone or the qualified item must be shipped from inside the super
106enterprise zone; however, the item may be shipped to any
107location. For the purposes of this section, all qualified sales
108made by a certified business located in a super enterprise zone
109shall be considered to have occurred within the super enterprise
110zone, regardless of where the transfer of title or possession
111takes place.
112     (b)  Notwithstanding paragraph (a), a new business
113established in a super enterprise zone and certified on or after
114July 1, 2008, pursuant to s. 290.00682 is eligible for the
115exemptions provided under this subsection for a period not to
116exceed 10 years immediately following such certification. For an
117existing business located in a super enterprise zone and
118certified on or after July 1, 2008, the exemptions provided
119under this subsection shall be available for a period not to
120exceed 5 years, beginning in the year in which the business
121receives its initial certification and continuing for up to 5
122years immediately following such certification.
123     (c)  This subsection is repealed June 30, 2020.
124     Section 4.  Paragraph (g) of subsection (8) of section
125290.0056, Florida Statutes, is amended, paragraph (i) is added
126to that subsection, paragraph (f) of subsection (11) of that
127section is redesignated as paragraph (g), and a new paragraph
128(f) is added to subsection (11), to read:
129     290.0056  Enterprise zone development agency.--
130     (8)  The enterprise zone development agency shall have the
131following powers and responsibilities:
132     (g)  To work with organizations affiliated with Florida
133Agricultural and Mechanical University, the University of
134Florida, and the University of South Florida, a group of
135universities unofficially named the "University Partnership for
136Community Development," the Metro-Miami Action Plan, or similar
137organizations that have combined their resources to provide
138development consulting on a nonprofit basis.
139     (i)1.  To recommend and submit an application to the office
140for the designation of a super enterprise zone.
141     2.  To coordinate with the local governmental entity for
142the exemptions from the sales and use tax provided under s.
143212.08(19).
144
145This paragraph is repealed June 30, 2020.
146     (11)  Prior to December 1 of each year, the agency shall
147submit to the Office of Tourism, Trade, and Economic Development
148a complete and detailed written report setting forth:
149     (f)  The economic impact of a super enterprise zone, if
150applicable, including:
151     1.  A list of certified businesses and whether the business
152is new or where the business relocated from.
153     2.  The number of jobs created.
154     3.  The percentage of employees employed by certified
155businesses who reside in the super enterprise zone or in an
156enterprise zone within the same county.
157     4.  The extent of capital investment by certified
158businesses within the zone.
159     5.  The success of the super enterprise zone as measured by
160the strategic plan and methods identified in s. 290.0057(1)(i).
161
162This paragraph is repealed June 30, 2020.
163     Section 5.  Subsection (1) of section 290.0057, Florida
164Statutes, is amended to read:
165     290.0057  Enterprise zone development plan.--
166     (1)  Any application for designation as a new enterprise
167zone or super enterprise zone must be accompanied by a strategic
168plan adopted by the governing body of the municipality or
169county, or the governing bodies of the county and one or more
170municipalities together. At a minimum, the plan must:
171     (a)  Briefly describe the community's goals for
172revitalizing the area.
173     (b)  Describe the ways in which the community's approaches
174to economic development, social and human services,
175transportation, housing, community development, public safety,
176and educational and environmental concerns will be addressed in
177a coordinated fashion, and explain how these linkages support
178the community's goals.
179     (c)  Identify and describe key community goals and the
180barriers that restrict the community from achieving these goals,
181including a description of poverty and general distress,
182barriers to economic opportunity and development, and barriers
183to human development.
184     (d)  Describe the process by which the affected community
185is a full partner in the process of developing and implementing
186the plan and the extent to which local institutions and
187organizations have contributed to the planning process.
188     (e)  Commit the governing body or bodies to enact and
189maintain local fiscal and regulatory incentives, if approval for
190the area is received under s. 290.0065. These incentives may
191include the municipal public service tax exemption provided by
192s. 166.231, the economic development ad valorem tax exemption
193provided by s. 196.1995, the occupational license tax exemption
194provided by s. 205.054, local impact fee abatement or reduction,
195or low-interest or interest-free loans or grants to businesses
196to encourage the revitalization of the nominated area.
197     (f)  Identify the amount of local and private resources
198that will be available in the nominated area and the
199private/public partnerships to be used, which may include
200participation by, and cooperation with, universities, community
201colleges, small business development centers, black business
202investment corporations, certified development corporations, and
203other private and public entities.
204     (g)  Indicate how state enterprise zone tax incentives and
205state, local, and federal resources will be utilized within the
206nominated area.
207     (h)  Identify the funding requested under any state or
208federal program in support of the proposed economic, human,
209community, and physical development and related activities.
210     (i)  Identify baselines, methods, and benchmarks for
211measuring the success of carrying out the strategic plan.
212     Section 6.  Effective July 1, 2020, subsection (1) of
213section 290.0057, Florida Statutes, as amended by this act, is
214amended to read:
215     290.0057  Enterprise zone development plan.--
216     (1)  Any application for designation as a new enterprise
217zone or super enterprise zone must be accompanied by a strategic
218plan adopted by the governing body of the municipality or
219county, or the governing bodies of the county and one or more
220municipalities together. At a minimum, the plan must:
221     (a)  Briefly describe the community's goals for
222revitalizing the area.
223     (b)  Describe the ways in which the community's approaches
224to economic development, social and human services,
225transportation, housing, community development, public safety,
226and educational and environmental concerns will be addressed in
227a coordinated fashion, and explain how these linkages support
228the community's goals.
229     (c)  Identify and describe key community goals and the
230barriers that restrict the community from achieving these goals,
231including a description of poverty and general distress,
232barriers to economic opportunity and development, and barriers
233to human development.
234     (d)  Describe the process by which the affected community
235is a full partner in the process of developing and implementing
236the plan and the extent to which local institutions and
237organizations have contributed to the planning process.
238     (e)  Commit the governing body or bodies to enact and
239maintain local fiscal and regulatory incentives, if approval for
240the area is received under s. 290.0065. These incentives may
241include the municipal public service tax exemption provided by
242s. 166.231, the economic development ad valorem tax exemption
243provided by s. 196.1995, the occupational license tax exemption
244provided by s. 205.054, local impact fee abatement or reduction,
245or low-interest or interest-free loans or grants to businesses
246to encourage the revitalization of the nominated area.
247     (f)  Identify the amount of local and private resources
248that will be available in the nominated area and the
249private/public partnerships to be used, which may include
250participation by, and cooperation with, universities, community
251colleges, small business development centers, black business
252investment corporations, certified development corporations, and
253other private and public entities.
254     (g)  Indicate how state enterprise zone tax incentives and
255state, local, and federal resources will be utilized within the
256nominated area.
257     (h)  Identify the funding requested under any state or
258federal program in support of the proposed economic, human,
259community, and physical development and related activities.
260     (i)  Identify baselines, methods, and benchmarks for
261measuring the success of carrying out the strategic plan.
262     Section 7.  Sections 290.00681 and 290.00682, Florida
263Statutes, are created to read:
264     290.00681  Super enterprise zone pilot project;
265designation; future repeal and revocation.--
266     (1)  The office shall designate the area in Miami-Dade
267County bordered by Northwest 23rd Street on the North, Northwest
2685th Street on the South, Northeast 1st Avenue on the East, and
269Northwest 8th Avenue on the West as a pilot project for a super
270enterprise zone for a 10-year period. To qualify as a super
271enterprise zone an area must:
272     (a)  Be located in an enterprise zone and be no larger than
2733 contiguous square miles.
274     (b)  Have an average unemployment rate four times greater
275than the state average.
276     (c)  Have a minimum of 40 percent of residents living below
277the federal poverty level.
278     (d)  Have general distress of business and residential
279property such that the local governing body by resolution has
280determined that the buildings are substandard, unsafe,
281unsanitary, dilapidated, or obsolete, or any combination of such
282conditions, and are detrimental to the safety, health, and
283welfare of the community.
284     (e)  Demonstrate evidence of significant job loss or
285dislocation in the area.
286
287In determining whether an area meets the unemployment, poverty,
288and general distress criteria of this subsection, the office
289shall use data from the most current decennial census and from
290information published by the Bureau of the Census and the Bureau
291of Labor Statistics. The data shall be comparable in point or
292period of time and methodology employed.
293     (2)  Any application for designation as a super enterprise
294zone must:
295     (a)  Briefly describe the community's goals for
296revitalizing the area and include a development plan.
297     (b)  Describe the ways in which the community's approach to
298economic development, social and human services, transportation,
299housing, community development, public safety, and educational
300and environmental concerns will be addressed in a coordinated
301fashion and explain how these linkages support the community's
302goals.
303     (c)  Identify and describe key community goals and the
304barriers that restrict the community from achieving these goals.
305     (d)  Identify the amount of local and private support and
306resources that will be available.
307     (e)  Identify baselines, methods, and benchmarks for
308measuring success.
309     (f)  Include written approval from any associated county
310office and mayor's office.
311     (3)  This section is repealed June 30, 2020, and any
312designation made pursuant to this section shall be revoked on
313that date.
314     290.00682  Super enterprise zones; business
315certification.--
316     (1)  A certified business is eligible for the tax
317exemptions provided in s. 212.08(19). To qualify as a certified
318business, receive an exemption certificate, and continue to
319receive the tax exemptions provided in s. 212.08(19), a business
320must:
321     (a)  File an application for certification with the local
322enterprise zone development agency. The application shall be
323filed no later than September 1 preceding the calendar year for
324which the business is seeking an exemption.
325     (b)  Operate and be located within a designated super
326enterprise zone.
327     (c)  Create new employment within the super enterprise zone
328while not causing unemployment elsewhere in the state.
329     (d)  Certify to the best of the business' knowledge that
330the business has no delinquent federal or state tax obligations.
331     (e)  Demonstrate that no less than 20 percent of its
332employees are residents of the designated super enterprise zone
333or an enterprise zone located within the same county. The
334employment requirement may be waived by the local enterprise
335zone development agency for good cause.
336     (2)  A local enterprise zone development agency may certify
337a business as eligible for the exemptions under s. 212.08(19)
338annually if the business meets the requirements in subsection
339(1). Each local enterprise zone development agency shall
340annually provide the local governmental entity, the office, and
341the Department of Revenue with a list of new and existing
342certified businesses. The Department of Revenue shall annually
343issue a tax exemption certificate to each business holding an
344exemption certificate issued by the local enterprise zone
345development agency. The certificate shall be good for one
346calendar year.
347     (3)  A local enterprise zone development agency may
348disqualify a certified business at any time if the business
349fails to meet the requirements of subsection (1). A business
350that makes a fraudulent claim under this section or for tax
351exemptions provided in s. 212.08(19) shall be liable for the
352payment of the tax due, together with the penalties set forth in
353s. 212.085, and as otherwise provided by law.
354     (4)  This section is repealed June 30, 2020, and any
355certification made pursuant to this section shall be revoked on
356that date.
357     Section 8.  Section 290.007, Florida Statutes, is amended
358to read:
359     290.007  State incentives available in enterprise zones and
360super enterprise zones.--
361     (1)  The following incentives are provided by the state to
362encourage the revitalization of enterprise zones:
363     (a)(1)  The enterprise zone jobs credit provided in s.
364220.181.
365     (b)(2)  The enterprise zone property tax credit provided in
366s. 220.182.
367     (c)(3)  The community contribution tax credits provided in
368ss. 212.08, 220.183, and 624.5105.
369     (d)(4)  The sales tax exemption for building materials used
370in the rehabilitation of real property in enterprise zones
371provided in s. 212.08(5)(g).
372     (e)(5)  The sales tax exemption for business equipment used
373in an enterprise zone provided in s. 212.08(5)(h).
374     (f)(6)  The sales tax exemption for electrical energy used
375in an enterprise zone provided in s. 212.08(15).
376     (g)(7)  The enterprise zone jobs credit against the sales
377tax provided in s. 212.096.
378     (h)(8)  Notwithstanding any law to the contrary, the Public
379Service Commission may allow public utilities and
380telecommunications companies to grant discounts of up to 50
381percent on tariffed rates for services to small businesses
382located in an enterprise zone designated pursuant to s.
383290.0065. Such discounts may be granted for a period not to
384exceed 5 years. For purposes of this paragraph subsection, the
385term "public utility" has the same meaning as in s. 366.02(1)
386and the term "telecommunications company" has the same meaning
387as in s. 364.02(14).
388     (2)  The following incentives are provided by the state to
389encourage the revitalization of super enterprise zones:
390     (a)  The sales tax exemption for certified businesses
391provided in s. 212.08(19)(a)1.
392     (b)  The sales tax exemption for retail sales by certified
393businesses provided in s. 212.08(19)(a)2.
394     Section 9.  Effective July 1, 2020, section 290.007,
395Florida Statutes, as amended by this act, is amended to read:
396     290.007  State incentives available in enterprise zones and
397super enterprise zones.--
398     (1)  The following incentives are provided by the state to
399encourage the revitalization of enterprise zones:
400     (1)(a)  The enterprise zone jobs credit provided in s.
401220.181.
402     (2)(b)  The enterprise zone property tax credit provided in
403s. 220.182.
404     (3)(c)  The community contribution tax credits provided in
405ss. 212.08, 220.183, and 624.5105.
406     (4)(d)  The sales tax exemption for building materials used
407in the rehabilitation of real property in enterprise zones
408provided in s. 212.08(5)(g).
409     (5)(e)  The sales tax exemption for business equipment used
410in an enterprise zone provided in s. 212.08(5)(h).
411     (6)(f)  The sales tax exemption for electrical energy used
412in an enterprise zone provided in s. 212.08(15).
413     (7)(g)  The enterprise zone jobs credit against the sales
414tax provided in s. 212.096.
415     (8)(h)  Notwithstanding any law to the contrary, the Public
416Service Commission may allow public utilities and
417telecommunications companies to grant discounts of up to 50
418percent on tariffed rates for services to small businesses
419located in an enterprise zone designated pursuant to s.
420290.0065. Such discounts may be granted for a period not to
421exceed 5 years. For purposes of this subsection paragraph, the
422term "public utility" has the same meaning as in s. 366.02(1)
423and the term "telecommunications company" has the same meaning
424as in s. 364.02(14).
425     (2)  The following incentives are provided by the state to
426encourage the revitalization of super enterprise zones:
427     (a)  The sales tax exemption for certified businesses
428provided in s. 212.08(19)(a)1.
429     (b)  The partial sales tax exemption for retail sales by
430certified businesses provided in s. 212.08(19)(a)2.
431     Section 10.  Prior to the 2014 Regular Session of the
432Legislature, the Office of Program Policy Analysis and
433Government Accountability shall conduct an interim review and
434evaluation of the effectiveness and viability of the super
435enterprise zone designated under s. 290.00681, Florida Statutes.
436The office shall specifically evaluate whether relief from the
437specified taxes caused or induced new investment and development
438in the super enterprise zone; increased the number of jobs
439created or retained in the super enterprise zone; caused or
440induced the renovation, rehabilitation, restoration,
441improvement, or new construction of businesses or housing within
442the super enterprise zone; or contributed to the economic
443viability and profitability of business and commerce located
444within the super enterprise zone. The office shall submit a
445report of its findings and recommendations to the Speaker of the
446House of Representatives and the President of the Senate no
447later than December 1, 2013. In 2019, the office shall conduct a
448final review in accordance with this section and shall make a
449final report to the President of the Senate and Speaker of the
450House of Representatives no later than December 1, 2019.
451     Section 11.  Except as otherwise expressly provided in this
452act, this act shall take effect July 1, 2007.


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