Senate Bill sb0458

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    Florida Senate - 2007                                   SB 458

    By Senator Siplin





    19-277-07

  1                      A bill to be entitled

  2         An act relating to tax refunds for hiring

  3         at-risk, inner-city youth; creating a tax

  4         refund program for hiring an at-risk,

  5         inner-city youth; defining terms; prescribing

  6         the method for calculating the amount of the

  7         refund; establishing limits on the amount of

  8         refunds; authorizing additional refunds for

  9         offering employee health insurance; prescribing

10         taxes that may be refunded; providing criminal

11         penalties for fraudulent refund claims;

12         providing for repayment of refunds plus

13         penalties; providing timeframes and procedures

14         for claiming refunds; specifying information

15         that must be submitted to support refund

16         claims; providing for review and approval of

17         applications for refunds; providing for

18         interagency cooperation and sharing of

19         information; specifying that refunds are

20         subject to legislative appropriation; providing

21         for the issuance of warrants to pay refunds;

22         requiring the Department of Revenue to provide

23         the Legislature with an estimated amount of

24         such refunds; authorizing the department to

25         adopt rules; providing for the expiration of

26         the refund program; providing an appropriation;

27         providing an effective date.

28  

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

30  

31  

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    Florida Senate - 2007                                   SB 458
    19-277-07




 1         Section 1.  Tax refund program for hiring a person who

 2  is an at-risk, inner-city youth.--

 3         (1)  DEFINITIONS.--As used in this section, the term:

 4         (a)  "At-risk, inner-city youth" means an individual

 5  who is at least 13 years of age but younger than 22 years of

 6  age, who lives in the central part of a municipality in an

 7  area characterized by crowded neighborhoods the residents of

 8  which are low-income, predominantly minority groups, and who

 9  is either failing in school or living in a single-parent home.

10         (b)  "Business" means an employing unit, as defined in

11  s. 443.036, Florida Statutes, which is registered for

12  unemployment compensation purposes with the state agency

13  providing unemployment tax collection services under contract

14  with the Agency for Workforce Innovation through an

15  interagency agreement under s. 443.1316, Florida Statutes, or

16  a subcategory or division of an employing unit which is

17  accepted as a reporting unit by the state agency providing

18  unemployment tax collection services.

19         (c)  "Department" means the Department of Revenue.

20         (d)  "Eligible employee" means a person who is an

21  at-risk, inner-city youth and who:

22         1.  Was hired after July 1, 2007;

23         2.  Works at least 80 hours per month; and

24         3.  Earns a salary that exceeds the federal minimum

25  wage.

26         (e)  "Fiscal year" means the fiscal year of the state.

27         (f)  "Qualified business" means a business that has

28  been approved by the department to receive a tax refund as

29  provided in subsection (3).

30         (2)  TAX REFUND; ELIGIBLE AMOUNTS.--

31  

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    Florida Senate - 2007                                   SB 458
    19-277-07




 1         (a)  A business that hires an at-risk, inner-city youth

 2  may receive a refund of eligible taxes certified by the

 3  department which were paid by the business.

 4         (b)  The refund shall be equal to 20 percent of the

 5  portion of the actual monthly wages paid in this state to each

 6  eligible employee which exceeds the federal minimum wage. The

 7  refund under this paragraph, however, may not exceed $6,000

 8  per eligible employee per fiscal year.

 9         (c)  Notwithstanding paragraph (b), a business may

10  receive an additional refund equal to $70 per month for each

11  eligible employee who is covered by a health insurance plan

12  offered by the business.

13         (d)  A business may claim a refund for any month during

14  which an eligible employee is employed by the business, except

15  that an eligible employee may not serve as the basis for

16  receipt of refunds for more than 24 cumulative months.

17         (e)  A business may claim refunds for a total of no

18  more than five eligible employees.

19         (f)  A business may receive refunds for the following

20  taxes due and paid by that business in the fiscal year

21  immediately preceding the date the business submits an

22  application for a tax refund under subsection (3):

23         1.  Corporate income taxes under chapter 220, Florida

24  Statutes.

25         2.  Insurance premium tax under s. 624.509, Florida

26  Statutes.

27         3.  Taxes on sales, use, and other transactions under

28  chapter 212, Florida Statutes.

29         4.  Emergency excise taxes under chapter 221, Florida

30  Statutes.

31  

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    Florida Senate - 2007                                   SB 458
    19-277-07




 1         5.  Excise taxes on documents under chapter 201,

 2  Florida Statutes.

 3         6.  Ad valorem taxes paid, as defined in s. 220.03(1),

 4  Florida Statutes.

 5         (g)  A business may not receive a refund under this

 6  section for any amount of credit, refund, or exemption granted

 7  to that business for any of the taxes enumerated in paragraph

 8  (f). If a refund for such taxes is provided by the department,

 9  which taxes are subsequently adjusted by the application of

10  any credit, refund, or exemption granted to the qualified

11  business other than as provided in this section, the business

12  shall reimburse the department for the amount of that credit,

13  refund, or exemption. A qualified business shall notify and

14  tender payment to the department within 20 days after

15  receiving the credit, refund, or exemption. Any payment

16  received by the department under this paragraph shall be

17  deposited in the General Revenue Fund.

18         (h)  A business that fraudulently claims a refund under

19  this section:

20         1.  Is liable for repayment of the amount of the

21  refund, plus a mandatory penalty in the amount of 200 percent

22  of the tax refund, which shall be deposited into the General

23  Revenue Fund.

24         2.  Commits a felony of the third degree, punishable as

25  provided in s. 775.082, s. 775.083, or s. 775.084, Florida

26  Statutes.

27         (i)  A tax refund provided under this section may not

28  exceed the amount of the tax which is the basis for the refund

29  and which was due and paid by the eligible business in the

30  fiscal year immediately preceding the date the business

31  submits an application for a tax refund under subsection (3).

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    Florida Senate - 2007                                   SB 458
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 1         (3)  CLAIM FOR REFUND; APPROVAL.--

 2         (a)  To claim a tax refund under this section, a

 3  business may apply beginning August 1 to the department for a

 4  refund to be paid from a specific appropriation made by the

 5  Legislature for the payment of refunds during that fiscal

 6  year. A business may apply for a refund monthly or may

 7  aggregate claims for more than 1 month.

 8         (b)  The claim for a refund by the business must

 9  include:

10         1.  A copy of all receipts pertaining to the payment of

11  taxes for which the refund is sought;

12         2.  Documentation, in a form and manner prescribed by

13  the department, which demonstrates that an eligible employee

14  is the basis for the refund;

15         3.  Documentation, if applicable, in a form and manner

16  prescribed by the department, which demonstrates that the

17  eligible employee who is the basis for the refund is covered

18  by the health insurance plan of the business in a manner that

19  satisfies paragraph (2)(c); and

20         4.  A certification by the business, in a form and

21  manner prescribed by the department, that no employee was

22  terminated without cause in order to hire an at-risk,

23  inner-city youth and claim a refund under this section.

24         (c)  The department, with such assistance as may be

25  required from the Department of Education or the Agency for

26  Workforce Innovation, shall review each claim for a refund in

27  the order received and specify by written order, within 60

28  days after receipt of the claim application, the approval or

29  disapproval of the claim for a refund and, if approved, the

30  amount of the tax refund which is authorized to be paid to the

31  qualified business. The department shall verify that the

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    Florida Senate - 2007                                   SB 458
    19-277-07




 1  employee is an at-risk, inner-city youth and shall verify the

 2  payment of taxes for which the refund is sought. The Agency

 3  for Workforce Innovation shall verify the employment status

 4  and wages of the eligible employee.

 5         (d)  This section does not create a presumption that an

 6  approved claim for a tax refund under this section will be

 7  paid to a qualified business.

 8         1.  Tax refunds under this section are subject to

 9  appropriation by the Legislature, and such refunds shall be

10  paid on a first-come, first-served basis according to the

11  order in which the department approves the claims submitted

12  during that fiscal year.

13         2.  If sufficient funds are not available for the

14  payment of an approved refund claim in one fiscal year, the

15  qualified business must forego the claim for payment in that

16  fiscal year but may resubmit a claim in a subsequent fiscal

17  year based on the same eligible employee if the employee has

18  not been the basis for the receipt of refunds for more than 24

19  cumulative months.

20         3.  If the department denies a claim for a tax refund

21  under this section and the denial is upheld on appeal, the

22  business must forego that claim.

23         (e)  Upon approval of the claim for a tax refund, and

24  if sufficient funds are available for payment of the claim,

25  the Chief Financial Officer shall issue a warrant for the

26  amount specified in the written order. If the written order is

27  appealed, the Chief Financial Officer may not issue a warrant

28  for a refund to the qualified business until the conclusion of

29  all appeals of the order.

30  

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    Florida Senate - 2007                                   SB 458
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 1         (f)  The total amount of refunds approved and paid in a

 2  fiscal year may not exceed the amount appropriated by the

 3  Legislature for the payment of refunds for that fiscal year.

 4         (4)  ADMINISTRATION.--

 5         (a)  The Agency for Workforce Innovation shall, upon

 6  request of the department:

 7         1.  Verify information provided in any claim submitted

 8  for tax refunds under this section with regard to employment

 9  and wage levels or the payment of the taxes to the appropriate

10  agency or authority, including the Department of Revenue, the

11  Agency for Workforce Innovation, or any local government or

12  authority.

13         2.  Assist in monitoring jobs, wages, and the payment

14  of the taxes listed in subsection (2).

15         (b)  By January 1 of each year, the department shall

16  provide an estimate to the Legislature of the amount necessary

17  to satisfy anticipated claims for refunds in the next fiscal

18  year, based on the experience of the department in

19  administering the program and based on activity levels under

20  the program.

21         (c)  Funds specifically appropriated for the tax refund

22  program under this section may not be used for any purpose

23  other than the payment of tax refunds authorized by this

24  section.

25         (d)  The department may adopt rules under ss.

26  120.536(1) and 120.54, Florida Statutes, to administer this

27  section, including, but not limited to, rules defining terms

28  used in this section and rules specifying the forms and

29  procedures for calculating and claiming refunds; the

30  procedures and criteria for reviewing refund claims, verifying

31  

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    Florida Senate - 2007                                   SB 458
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 1  data related to refund claims, and approving claims; and the

 2  procedures for paying refund claims.

 3         (5)  EXPIRATION.--This section expires June 30, 2013.

 4         Section 2.  The sum of _______ is appropriated from the

 5  General Revenue Fund to the Department of Revenue for the

 6  payment of refunds during the 2007-2008 fiscal year under the

 7  tax refund program for hiring an at-risk, inner-city youth as

 8  created by this act.

 9         Section 3.  This act shall take effect July 1, 2007.

10  

11            *****************************************

12                          SENATE SUMMARY

13    Provides for tax refunds to be made to businesses for
      hiring at-risk, inner-city youths. Defines terms.
14    Prescribes how the amount of such refunds must be
      calculated. Establishes limits on the amount of the
15    refunds. Authorizes additional refunds for offering
      employee health insurance. Prescribes taxes that may be
16    refunded. Provides criminal penalties for fraudulent
      refund claims. Provides for the repayment of fraudulently
17    granted refunds plus penalties. Provides timeframes and
      procedures for claiming the refunds. Specifies
18    information that must be submitted to support refund
      claims. Provides for the review and approval of
19    applications for refunds. Provides for interagency
      cooperation. Specifies that refunds are subject to
20    legislative appropriation. Provides for the Chief
      Financial Officer to issue warrants to pay the refunds.
21    Requires the Department of Revenue to provide the
      Legislature with an estimated amount of such refunds.
22    Authorizes the department to adopt rules. Provides for
      the expiration of the refund program. Provides an
23    appropriation.

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