CS/HB 1373

1
A bill to be entitled
2An act relating to the qualified defense contractor tax
3refund program; amending s. 288.1045, F.S.; revising
4definitions to include space flight businesses and space
5flight contracts; specifying a methodology and amounts for
6tax refund payments to qualified defense contractor
7businesses; revising provisions authorizing qualified
8applicants to receive refunds of certain taxes; revising
9application process requirements to include space flight
10businesses and contracts; revising information
11requirements for applications for certain qualified
12applicant certifications; providing employment
13requirements for space flight business contracts;
14specifying required information for applications for
15certification under space flight business contracts;
16including space flight businesses under provisions
17authorizing annual claims for refund; revising limitations
18on payments of tax refunds; revising certain required
19reductions of amounts of tax refunds; deleting a reporting
20requirement of tax refunds paid and use of appropriations
21expended; extending an expiration date; amending ss.
2214.2015 and 213.053, F.S.; conforming program references;
23providing an effective date.
24
25Be It Enacted by the Legislature of the State of Florida:
26
27     Section 1.  Subsection (1), paragraphs (b) and (f) of
28subsection (2), subsections (3), (4), and (5), paragraphs (d)
29and (e) of subsection (6), and subsection (8) of section
30288.1045, Florida Statutes, are amended to read:
31     288.1045  Qualified defense contractor and space flight
32business tax refund program.--
33     (1)  DEFINITIONS.--As used in this section:
34     (a)(c)  "Applicant" means any business entity that holds a
35valid Department of Defense contract or space flight business
36contract, or any business entity that is a subcontractor under a
37valid Department of Defense contract or space flight business
38contract, or any business entity that holds a valid contract for
39the reuse of a defense-related facility, including all members
40of an affiliated group of corporations as defined in s.
41220.03(1)(b).
42     (b)  "Average wage in the area" means the average of all
43wages and salaries in the state, the county, or in the standard
44metropolitan area in which the business unit is located.
45     (c)(n)  "Business unit" means an employing unit, as defined
46in s. 443.036, that is registered with the Agency for Workforce
47Innovation for unemployment compensation purposes or means a
48subcategory or division of an employing unit that is accepted by
49the Agency for Workforce Innovation as a reporting unit.
50     (d)(a)  "Consolidation of a Department of Defense contract"
51means the consolidation of one or more of an applicant's
52facilities under one or more Department of Defense contracts,
53either from outside this state or from inside and outside this
54state, into one or more of the applicant's facilities inside
55this state.
56     (e)  "Consolidation of a space flight business contract"
57means the consolidation of one or more of an applicant's
58facilities under one or more space flight business contracts,
59from outside this state or from inside and outside this state,
60into one or more of the applicant's facilities inside this
61state.
62     (f)(p)  "Contract for reuse of a defense-related facility"
63means a contract with a duration of 2 or more years for the use
64of a facility for manufacturing, assembling, fabricating,
65research, development, or design of tangible personal property,
66but excluding any contract to provide goods, improvements to
67real or tangible property, or services directly to or for any
68particular military base or installation in this state. Such
69facility must be located within a port, as defined in s. 313.21,
70and have been occupied by a business entity that held a valid
71Department of Defense contract or occupied by any branch of the
72Armed Forces of the United States, within 1 year of any contract
73being executed for the reuse of such facility. A contract for
74reuse of a defense-related facility may not include any contract
75for reuse of such facility for any Department of Defense
76contract for manufacturing, assembling, fabricating, research,
77development, or design.
78     (g)(e)  "Department of Defense contract" means a
79competitively bid Department of Defense contract or subcontract
80or a competitively bid federal agency contract or subcontract
81issued on behalf of the Department of Defense for manufacturing,
82assembling, fabricating, research, development, or design with a
83duration of 2 or more years, but excluding any contract or
84subcontract to provide goods, improvements to real or tangible
85property, or services directly to or for any particular military
86base or installation in this state. The term includes contracts
87or subcontracts for products or services for military use or
88homeland security which contracts or subcontracts are approved
89by the United States Department of Defense, the United States
90Department of State, or the United States Department of Homeland
91Security.
92     (h)(k)  "Director" means the director of the Office of
93Tourism, Trade, and Economic Development.
94     (i)(m)  "Fiscal year" means the fiscal year of the state.
95     (j)(g)  "Jobs" means full-time equivalent positions,
96consistent with the use of such terms by the Agency for
97Workforce Innovation for the purpose of unemployment
98compensation tax, created or retained as a direct result of a
99project in this state. This number does not include temporary
100construction jobs involved with the construction of facilities
101for the project.
102     (k)(o)  "Local financial support" means funding from local
103sources, public or private, which is paid to the Economic
104Development Trust Fund and which is equal to 20 percent of the
105annual tax refund for a qualified applicant. Local financial
106support may include excess payments made to a utility company
107under a designated program to allow decreases in service by the
108utility company under conditions, regardless of when application
109is made. A qualified applicant may not provide, directly or
110indirectly, more than 5 percent of such funding in any fiscal
111year. The sources of such funding may not include, directly or
112indirectly, state funds appropriated from the General Revenue
113Fund or any state trust fund, excluding tax revenues shared with
114local governments pursuant to law.
115     (l)(q)  "Local financial support exemption option" means
116the option to exercise an exemption from the local financial
117support requirement available to any applicant whose project is
118located in a county designated by the Rural Economic Development
119Initiative, if the county commissioners of the county in which
120the project will be located adopt a resolution requesting that
121the applicant's project be exempt from the local financial
122support requirement. Any applicant that exercises this option is
123not eligible for more than 80 percent of the total tax refunds
124allowed such applicant under this section.
125     (m)(f)  "New Department of Defense contract" means a
126Department of Defense contract entered into after the date
127application for certification as a qualified applicant is made
128and after January 1, 1994.
129     (n)  "New space flight business contract" means a space
130flight business contract entered into after an application for
131certification as a qualified applicant is made after July 1,
1322008.
133     (o)(h)  "Nondefense production jobs" means employment
134exclusively for activities that, directly or indirectly, are
135unrelated to the Department of Defense.
136     (p)(d)  "Office" means the Office of Tourism, Trade, and
137Economic Development.
138     (q)(i)  "Project" means any business undertaking in this
139state under a new Department of Defense contract, consolidation
140of a Department of Defense contract, new space flight business
141contract, consolidation of a space flight business contract, or
142conversion of defense production jobs over to nondefense
143production jobs or reuse of defense-related facilities.
144     (r)(j)  "Qualified applicant" means an applicant that has
145been approved by the director to be eligible for tax refunds
146pursuant to this section.
147     (s)  "Space flight business" means the manufacturing,
148processing, or assembly of space flight technology products,
149space flight facilities, space flight propulsion systems, or
150space vehicles, satellites, or stations of any kind possessing
151the capability for space flight, as defined by s. 212.02(23), or
152components thereof, and includes, in supporting space flight,
153vehicle launch activities, flight operations, ground control or
154ground support, and all administrative activities directly
155related to such activities. The term does not include products
156that are designed or manufactured for general commercial
157aviation or other uses even if those products may also serve an
158incidental use in space flight applications.
159     (t)  "Space flight business contract" means a competitively
160bid federal agency contract, federal agency subcontract, an
161awarded commercial contract, or an awarded commercial
162subcontract for space flight business with a duration of 2 or
163more years.
164     (u)(l)  "Taxable year" means the same as in s.
165220.03(1)(y).
166     (2)  GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.--
167     (b)  Upon approval by the director, a qualified applicant
168shall be allowed tax refund payments equal to $3,000 times the
169number of jobs specified in the tax refund agreement under
170subparagraph (4)(a)1. or equal to $6,000 times the number of
171jobs if the project is located in a rural county or an
172enterprise zone. Further, a qualified applicant shall be allowed
173additional tax refund payments equal to $1,000 times the number
174of jobs specified in the tax refund agreement under subparagraph
175(4)(a)1. if such jobs pay an annual average wage of at least 150
176percent of the average private sector wage in the area or equal
177to $2,000 times the number of jobs if such jobs pay an annual
178average wage of at least 200 percent of the average private
179sector wage in the area. A qualified applicant may not be
180qualified for any project to receive more than $5,000 times the
181number of jobs provided in the tax refund agreement pursuant to
182subparagraph (4)(a)1. A qualified applicant may not receive
183refunds of more than 25 percent of the total tax refunds
184provided in the tax refund agreement pursuant to subparagraph
185(4)(a)1. in any fiscal year, provided that no qualified
186applicant may receive more than $2.5 million in tax refunds
187pursuant to this section in any fiscal year.
188     (f)  After entering into a tax refund agreement pursuant to
189subsection (4), a qualified applicant may:
190     1.  Receive refunds from the account for corporate income
191taxes due and paid pursuant to chapter 220 by that business
192beginning with the first taxable year of the business which
193begins after entering into the agreement.
194     2.  Receive refunds from the account Economic Development
195Trust Fund for the following taxes due and paid by that business
196the qualified applicant beginning with the applicant's first
197taxable year that begins after entering into the agreement:
198     a.1.  Taxes on sales, use, and other transactions paid
199pursuant to chapter 212.
200     2.  Corporate income taxes paid pursuant to chapter 220.
201     b.3.  Intangible personal property taxes paid pursuant to
202chapter 199.
203     c.4.  Emergency excise taxes paid pursuant to chapter 221.
204     d.5.  Excise taxes paid on documents pursuant to chapter
205201.
206     e.6.  Ad valorem taxes paid, as defined in s. 220.03(1)(a)
207on June 1, 1996.
208     f.7.  State communications services taxes administered
209under chapter 202. This provision does not apply to the gross
210receipts tax imposed under chapter 203 and administered under
211chapter 202 or the local communications services tax authorized
212under s. 202.19.
213
214However, a qualified applicant may not receive a tax refund
215pursuant to this section for any amount of credit, refund, or
216exemption granted such contractor for any of such taxes. If a
217refund for such taxes is provided by the office, which taxes are
218subsequently adjusted by the application of any credit, refund,
219or exemption granted to the qualified applicant other than that
220provided in this section, the qualified applicant shall
221reimburse the Economic Development Trust Fund for the amount of
222such credit, refund, or exemption. A qualified applicant must
223notify and tender payment to the office within 20 days after
224receiving a credit, refund, or exemption, other than that
225provided in this section. The addition of communications
226services taxes administered under chapter 202 is remedial in
227nature and retroactive to October 1, 2001. The office may make
228supplemental tax refund payments to allow for tax refunds for
229communications services taxes paid by an eligible qualified
230defense contractor after October 1, 2001.
231     (3)  APPLICATION PROCESS; REQUIREMENTS; AGENCY
232DETERMINATION.--
233     (a)  To apply for certification as a qualified applicant
234pursuant to this section, an applicant must file an application
235with the office which satisfies the requirements of paragraphs
236(b) and (e), paragraphs (c) and (e), or paragraphs (d) and (e),
237or paragraphs (e) and (k). An applicant may not apply for
238certification pursuant to this section after a proposal has been
239submitted for a new Department of Defense contract, after the
240applicant has made the decision to consolidate an existing
241Department of Defense contract in this state for which such
242applicant is seeking certification, after a proposal has been
243submitted for a new space flight business contract in this
244state, after the applicant has made the decision to consolidate
245an existing space flight business contract in this state for
246which such applicant is seeking certification, or after the
247applicant has made the decision to convert defense production
248jobs to nondefense production jobs for which such applicant is
249seeking certification.
250     (b)  Applications for certification based on the
251consolidation of a Department of Defense contract or a new
252Department of Defense contract must be submitted to the office
253as prescribed by the office and must include, but are not
254limited to, the following information:
255     1.  The applicant's federal employer identification number,
256the applicant's Florida sales tax registration number, and a
257notarized signature of an officer of the applicant.
258     2.  The permanent location of the manufacturing,
259assembling, fabricating, research, development, or design
260facility in this state at which the project is or is to be
261located.
262     3.  The Department of Defense contract numbers of the
263contract to be consolidated, the new Department of Defense
264contract number, or the "RFP" number of a proposed Department of
265Defense contract.
266     4.  The date the contract was executed or is expected to be
267executed, and the date the contract is due to expire or is
268expected to expire.
269     5.  The commencement date for project operations under the
270contract in this state.
271     6.  The number of net new full-time equivalent Florida jobs
272included in the project as of December 31 of each year and the
273average wage of such jobs.
274     7.  The total number of full-time equivalent employees
275employed by the applicant in this state.
276     8.  The percentage of the applicant's gross receipts
277derived from Department of Defense contracts during the 5
278taxable years immediately preceding the date the application is
279submitted.
280     9.  The number of full-time equivalent jobs in this state
281to be retained by the project.
282     10.  The estimated amount of tax refunds to be claimed for
283each fiscal year.
284     10.11.  A brief statement concerning the applicant's need
285for tax refunds, and the proposed uses of such refunds by the
286applicant.
287     11.12.  A resolution adopted by the governing board county
288commissioners of the county or municipality in which the project
289will be located, which recommends the applicant be approved as a
290qualified applicant, and which indicates that the necessary
291commitments of local financial support for the applicant exist.
292Prior to the adoption of the resolution, the county commission
293may review the proposed public or private sources of such
294support and determine whether the proposed sources of local
295financial support can be provided or, for any applicant whose
296project is located in a county designated by the Rural Economic
297Development Initiative, a resolution adopted by the county
298commissioners of such county requesting that the applicant's
299project be exempt from the local financial support requirement.
300     12.13.  Any additional information requested by the office.
301     (c)  Applications for certification based on the conversion
302of defense production jobs to nondefense production jobs must be
303submitted to the office as prescribed by the office and must
304include, but are not limited to, the following information:
305     1.  The applicant's federal employer identification number,
306the applicant's Florida sales tax registration number, and a
307notarized signature of an officer of the applicant.
308     2.  The permanent location of the manufacturing,
309assembling, fabricating, research, development, or design
310facility in this state at which the project is or is to be
311located.
312     3.  The Department of Defense contract numbers of the
313contract under which the defense production jobs will be
314converted to nondefense production jobs.
315     4.  The date the contract was executed, and the date the
316contract is due to expire or is expected to expire, or was
317canceled.
318     5.  The commencement date for the nondefense production
319operations in this state.
320     6.  The number of net new full-time equivalent Florida jobs
321included in the nondefense production project as of December 31
322of each year and the average wage of such jobs.
323     7.  The total number of full-time equivalent employees
324employed by the applicant in this state.
325     8.  The percentage of the applicant's gross receipts
326derived from Department of Defense contracts during the 5
327taxable years immediately preceding the date the application is
328submitted.
329     9.  The number of full-time equivalent jobs in this state
330to be retained by the project.
331     10.  The estimated amount of tax refunds to be claimed for
332each fiscal year.
333     10.11.  A brief statement concerning the applicant's need
334for tax refunds, and the proposed uses of such refunds by the
335applicant.
336     11.12.  A resolution adopted by the governing board county
337commissioners of the county or municipality in which the project
338will be located, which recommends the applicant be approved as a
339qualified applicant, and which indicates that the necessary
340commitments of local financial support for the applicant exist.
341Prior to the adoption of the resolution, the county commission
342may review the proposed public or private sources of such
343support and determine whether the proposed sources of local
344financial support can be provided or, for any applicant whose
345project is located in a county designated by the Rural Economic
346Development Initiative, a resolution adopted by the county
347commissioners of such county requesting that the applicant's
348project be exempt from the local financial support requirement.
349     12.13.  Any additional information requested by the office.
350     (d)  Applications for certification based on a contract for
351reuse of a defense-related facility must be submitted to the
352office as prescribed by the office and must include, but are not
353limited to, the following information:
354     1.  The applicant's Florida sales tax registration number
355and a notarized signature of an officer of the applicant.
356     2.  The permanent location of the manufacturing,
357assembling, fabricating, research, development, or design
358facility in this state at which the project is or is to be
359located.
360     3.  The business entity holding a valid Department of
361Defense contract or branch of the Armed Forces of the United
362States that previously occupied the facility, and the date such
363entity last occupied the facility.
364     4.  A copy of the contract to reuse the facility, or such
365alternative proof as may be prescribed by the office that the
366applicant is seeking to contract for the reuse of such facility.
367     5.  The date the contract to reuse the facility was
368executed or is expected to be executed, and the date the
369contract is due to expire or is expected to expire.
370     6.  The commencement date for project operations under the
371contract in this state.
372     7.  The number of net new full-time equivalent Florida jobs
373included in the project as of December 31 of each year and the
374average wage of such jobs.
375     8.  The total number of full-time equivalent employees
376employed by the applicant in this state.
377     9.  The number of full-time equivalent jobs in this state
378to be retained by the project.
379     10.  The estimated amount of tax refunds to be claimed for
380each fiscal year.
381     10.11.  A brief statement concerning the applicant's need
382for tax refunds, and the proposed uses of such refunds by the
383applicant.
384     11.12.  A resolution adopted by the governing board county
385commissioners of the county or municipality in which the project
386will be located, which recommends the applicant be approved as a
387qualified applicant, and which indicates that the necessary
388commitments of local financial support for the applicant exist.
389Prior to the adoption of the resolution, the county commission
390may review the proposed public or private sources of such
391support and determine whether the proposed sources of local
392financial support can be provided or, for any applicant whose
393project is located in a county designated by the Rural Economic
394Development Initiative, a resolution adopted by the county
395commissioners of such county requesting that the applicant's
396project be exempt from the local financial support requirement.
397     12.13.  Any additional information requested by the office.
398     (e)  To qualify for review by the office, the application
399of an applicant must, at a minimum, establish the following to
400the satisfaction of the office:
401     1.  The jobs proposed to be provided under the application,
402pursuant to subparagraph (b)6., or subparagraph (c)6., or
403subparagraph (k)6., must pay an estimated annual average wage
404equaling at least 115 percent of the average wage in the area
405where the project is to be located.
406     2.  The consolidation of a Department of Defense contract
407must result in a net increase of at least 25 percent in the
408number of jobs at the applicant's facilities in this state or
409the addition of at least 80 jobs at the applicant's facilities
410in this state.
411     3.  The conversion of defense production jobs to nondefense
412production jobs must result in net increases in nondefense
413employment at the applicant's facilities in this state.
414     4.  The Department of Defense contract or the space flight
415business contract cannot allow the business to include the costs
416of relocation or retooling in its base as allowable costs under
417a cost-plus, or similar, contract.
418     5.  A business unit of the applicant must have derived not
419less than 60 percent of its gross receipts in this state from
420Department of Defense contracts or space flight business
421contracts over the applicant's last fiscal year, and must have
422derived not less than an average of 60 percent of its gross
423receipts in this state from Department of Defense contracts or
424space flight business contracts over the 5 years preceding the
425date an application is submitted pursuant to this section. This
426subparagraph does not apply to any application for certification
427based on a contract for reuse of a defense-related facility.
428     6.  The reuse of a defense-related facility must result in
429the creation of at least 100 jobs at such facility.
430     7.  A new space flight business contract or the
431consolidation of a space flight business contract must result in
432net increases in space flight business employment at the
433applicant's facilities in this state.
434     (f)  Each application meeting the requirements of
435paragraphs (b) and (e), paragraphs (c) and (e), or paragraphs
436(d) and (e), or paragraphs (e) and (k) must be submitted to the
437office for a determination of eligibility. The office shall
438review and, evaluate, and score each application based on, but
439not limited to, the following criteria:
440     1.  Expected contributions to the state strategic economic
441development plan adopted by Enterprise Florida, Inc., taking
442into account the extent to which the project contributes to the
443state's high-technology base, and the long-term impact of the
444project and the applicant on the state's economy.
445     2.  The economic benefit of the jobs created or retained by
446the project in this state, taking into account the cost and
447average wage of each job created or retained, and the potential
448risk to existing jobs.
449     3.  The amount of capital investment to be made by the
450applicant in this state.
451     4.  The local commitment and support for the project and
452applicant.
453     5.  The impact of the project on the local community,
454taking into account the unemployment rate for the county where
455the project will be located.
456     6.  The dependence of the local community on the defense
457industry or space flight business.
458     7.  The impact of any tax refunds granted pursuant to this
459section on the viability of the project and the probability that
460the project will occur in this state if such tax refunds are
461granted to the applicant, taking into account the expected long-
462term commitment of the applicant to economic growth and
463employment in this state.
464     8.  The length of the project, or the expected long-term
465commitment to this state resulting from the project.
466     (g)  The office shall forward its written findings and
467evaluation on each application meeting the requirements of
468paragraphs (b) and (e), paragraphs (c) and (e), or paragraphs
469(d) and (e), or paragraphs (e) and (k) to the director within 60
470calendar days after receipt of a complete application. The
471office shall notify each applicant when its application is
472complete, and when the 60-day period begins. In its written
473report to the director, the office shall specifically address
474each of the factors specified in paragraph (f), and shall make a
475specific assessment with respect to the minimum requirements
476established in paragraph (e). The office shall include in its
477report projections of the tax refunds the applicant would be
478eligible to receive in each fiscal year based on the creation
479and maintenance of the net new Florida jobs specified in
480subparagraph (b)6., subparagraph (c)6., or subparagraph (d)7.,
481or subparagraph (k)6. as of December 31 of the preceding state
482fiscal year.
483     (h)  Within 30 days after receipt of the office's findings
484and evaluation, the director shall issue a letter of
485certification which either approves or disapproves an
486application. The decision must be in writing and provide the
487justifications for either approval or disapproval. If
488appropriate, the director shall enter into a written agreement
489with the qualified applicant pursuant to subsection (4).
490     (i)  The director may not certify any applicant as a
491qualified applicant when the value of tax refunds to be included
492in that letter of certification exceeds the available amount of
493authority to certify new businesses as determined in s.
494288.095(3). A letter of certification that approves an
495application must specify the maximum amount of a tax refund that
496is to be available to the contractor for each fiscal year and
497the total amount of tax refunds for all fiscal years.
498     (j)  This section does not create a presumption that an
499applicant should receive any tax refunds under this section.
500     (k)  Applications for certification based upon a new space
501flight business contract or the consolidation of a space flight
502business contract must be submitted to the office as prescribed
503by the office and must include, but are not limited to, the
504following information:
505     1.  The applicant's federal employer identification number,
506the applicant's Florida sales tax registration number, and a
507signature of an officer of the applicant.
508     2.  The permanent location of the space flight business
509facility in this state where the project is or will be located.
510     3.  The new space flight business contract number, the
511space flight business contract numbers of the contract to be
512consolidated, or the request-for-proposal number of a proposed
513space flight business contract.
514     4.  The date the contract was executed and the date the
515contract is due to expire, is expected to expire, or was
516canceled.
517     5.  The commencement date for project operations under the
518contract in this state.
519     6.  The number of net new full-time equivalent Florida jobs
520included in the project as of December 31 of each year and the
521average wage of such jobs.
522     7.  The total number of full-time equivalent employees
523employed by the applicant in this state.
524     8.  The percentage of the applicant's gross receipts
525derived from space flight business contracts during the 5
526taxable years immediately preceding the date the application is
527submitted.
528     9.  The number of full-time equivalent jobs in this state
529to be retained by the project.
530     10.  A brief statement concerning the applicant's need for
531tax refunds and the proposed uses of such refunds by the
532applicant.
533     11.  A resolution adopted by the governing board of the
534county or municipality in which the project will be located
535which recommends the applicant be approved as a qualified
536applicant and indicates that the necessary commitments of local
537financial support for the applicant exist. Prior to the adoption
538of the resolution, the county commission may review the proposed
539public or private sources of such support and determine whether
540the proposed sources of local financial support can be provided
541or, for any applicant whose project is located in a county
542designated by the Rural Economic Development Initiative, a
543resolution adopted by the county commissioners of such county
544requesting that the applicant's project be exempt from the local
545financial support requirement.
546     12.  Any additional information requested by the office.
547     (4)  QUALIFIED APPLICANT DEFENSE CONTRACTOR TAX REFUND
548AGREEMENT.--
549     (a)  A qualified applicant shall enter into a written
550agreement with the office containing, but not limited to, the
551following:
552     1.  The total number of full-time equivalent jobs in this
553state that are or will be dedicated to the qualified applicant's
554project, the average wage of such jobs, the definitions that
555will apply for measuring the achievement of these terms during
556the pendency of the agreement, and a time schedule or plan for
557when such jobs will be in place and active in this state.
558     2.  The maximum amount of a refund that the qualified
559applicant is eligible to receive for each fiscal year, based on
560the job creation or retention and maintenance schedule specified
561in subparagraph 1.
562     3.  An agreement with the office allowing the office to
563review and verify the financial and personnel records of the
564qualified applicant to ascertain whether the qualified applicant
565is complying with the requirements of this section.
566     4.  The date by which, in each fiscal year, the qualified
567applicant may file a claim pursuant to subsection (5) to be
568considered to receive a tax refund in the following fiscal year.
569     5.  That local financial support shall be annually
570available and will be paid to the Economic Development Trust
571Fund.
572     (b)  Compliance with the terms and conditions of the
573agreement is a condition precedent for receipt of tax refunds
574each year. The failure to comply with the terms and conditions
575of the agreement shall result in the loss of eligibility for
576receipt of all tax refunds previously authorized pursuant to
577this section, and the revocation of the certification as a
578qualified applicant by the director, unless the qualified
579applicant is eligible to receive and elects to accept a prorated
580refund under paragraph (5)(g) or the office grants the qualified
581applicant an economic-stimulus exemption.
582     1.  A qualified applicant may submit, in writing, a request
583to the office for an economic-stimulus exemption. The request
584must provide quantitative evidence demonstrating how negative
585economic conditions in the qualified applicant's industry, the
586effects of the impact of a named hurricane or tropical storm, or
587specific acts of terrorism affecting the qualified applicant
588have prevented the qualified applicant from complying with the
589terms and conditions of its tax refund agreement.
590     2.  Upon receipt of a request under subparagraph 1., the
591director shall have 45 days to notify the requesting qualified
592applicant, in writing, if its exemption has been granted or
593denied. In determining if an exemption should be granted, the
594director shall consider the extent to which negative economic
595conditions in the requesting qualified applicant's industry, the
596effects of the impact of a named hurricane or tropical storm, or
597specific acts of terrorism affecting the qualified applicant
598have prevented the qualified applicant from complying with the
599terms and conditions of its tax refund agreement.
600     3.  As a condition for receiving a prorated refund under
601paragraph (5)(g) or an economic-stimulus exemption under this
602paragraph, a qualified applicant must agree to renegotiate its
603tax refund agreement with the office to, at a minimum, ensure
604that the terms of the agreement comply with current law and
605office procedures governing application for and award of tax
606refunds. Upon approving the award of a prorated refund or
607granting an economic-stimulus exemption, the office shall
608renegotiate the tax refund agreement with the qualified
609applicant as required by this subparagraph. When amending the
610agreement of a qualified applicant receiving an economic-
611stimulus exemption, the office may extend the duration of the
612agreement for a period not to exceed 2 years.
613     4.  A qualified applicant may submit a request for an
614economic-stimulus exemption to the office in lieu of any tax
615refund claim scheduled to be submitted after January 1, 2005,
616but before July 1, 2006.
617     5.  A qualified applicant that receives an economic-
618stimulus exemption may not receive a tax refund for the period
619covered by the exemption.
620     (c)  The agreement shall be signed by the director and the
621authorized officer of the qualified applicant.
622     (d)  The agreement must contain the following legend,
623clearly printed on its face in bold type of not less than 10
624points:
625
626"This agreement is neither a general obligation of the State of
627Florida, nor is it backed by the full faith and credit of the
628State of Florida. Payment of tax refunds are conditioned on and
629subject to specific annual appropriations by the Florida
630Legislature of funds sufficient to pay amounts authorized in s.
631288.1045, Florida Statutes."
632     (5)  ANNUAL CLAIM FOR REFUND FROM A QUALIFIED DEFENSE
633CONTRACTOR.--
634     (a)  To be eligible to claim any scheduled tax refund,
635qualified applicants who have entered into a written agreement
636with the office pursuant to subsection (4) and who have entered
637into a valid new Department of Defense contract, entered into a
638valid new space flight business contract, commenced the
639consolidation of a space flight business contract, commenced the
640consolidation of a Department of Defense contract, commenced the
641conversion of defense production jobs to nondefense production
642jobs, or entered into a valid contract for reuse of a defense-
643related facility must apply by January 31 of each fiscal year to
644the office for tax refunds scheduled to be paid from the
645appropriation for the fiscal year that begins on July 1
646following the January 31 claims-submission date. The office may,
647upon written request, grant a 30-day extension of the filing
648date. The application must include a notarized signature of an
649officer of the applicant.
650     (b)  The claim for refund by the qualified applicant must
651include a copy of all receipts pertaining to the payment of
652taxes for which a refund is sought, and data related to
653achieving each performance item contained in the tax refund
654agreement pursuant to subsection (4). The amount requested as a
655tax refund may not exceed the amount for the relevant fiscal
656year in the written agreement entered pursuant to subsection
657(4).
658     (c)  A tax refund may not be approved for any qualified
659applicant unless local financial support has been paid to the
660Economic Development Trust Fund for that refund. If the local
661financial support is less than 20 percent of the approved tax
662refund, the tax refund shall be reduced. The tax refund paid may
663not exceed 5 times the local financial support received. Funding
664from local sources includes tax abatement under s. 196.1995 or
665the appraised market value of municipal or county land,
666including any improvements or structures, conveyed or provided
667at a discount through a sale or lease to that applicant provided
668to a qualified applicant. The amount of any tax refund for an
669applicant approved under this section shall be reduced by the
670amount of any such tax abatement granted or the value of the
671land granted, including the value of any improvements or
672structures;, and the limitations in subsection (2) and paragraph
673(3)(h) shall be reduced by the amount of any such tax abatement
674or the value of the land granted, including any improvements or
675structures. A report listing all sources of the local financial
676support shall be provided to the office when such support is
677paid to the Economic Development Trust Fund.
678     (d)  The director, with assistance from the office, the
679Department of Revenue, and the Agency for Workforce Innovation,
680shall, by June 30 following the scheduled date for submitting
681the tax refund claim, specify by written order the approval or
682disapproval of the tax refund claim and, if approved, the amount
683of the tax refund that is authorized to be paid to the qualified
684applicant for the annual tax refund. The office may grant an
685extension of this date upon the request of the qualified
686applicant for the purpose of filing additional information in
687support of the claim.
688     (e)  The total amount of tax refunds approved by the
689director under this section in any fiscal year may not exceed
690the amount authorized under s. 288.095(3).
691     (f)  Upon approval of the tax refund pursuant to paragraphs
692(c) and (d), the Chief Financial Officer shall issue a warrant
693for the amount included in the written order. In the event of
694any appeal of the written order, the Chief Financial Officer may
695not issue a warrant for a refund to the qualified applicant
696until the conclusion of all appeals of the written order.
697     (g)  A prorated tax refund, less a 5 percent penalty, shall
698be approved for a qualified applicant provided all other
699applicable requirements have been satisfied and the applicant
700proves to the satisfaction of the director that it has achieved
701at least 80 percent of its projected employment and that the
702average wage paid by the qualified applicant is at least 90
703percent of the average wage specified in the tax refund
704agreement, but in no case less than 115 percent of the average
705private sector wage in the area available at the time of
706certification. The prorated tax refund shall be calculated by
707multiplying the tax refund amount for which the qualified
708applicant would have been eligible, if all applicable
709requirements had been satisfied, by the percentage of the
710average employment specified in the tax refund agreement which
711was achieved, and by the percentage of the average wages
712specified in the tax refund agreement which was achieved.
713     (h)  This section does not create a presumption that a tax
714refund claim will be approved and paid.
715     (6)  ADMINISTRATION.--
716     (d)  By December 1 of each year, the office shall submit a
717complete and detailed report to the Governor, the President of
718the Senate, and the Speaker of the House of Representatives of
719all tax refunds paid under this section, including analyses of
720benefits and costs, types of projects supported, employment and
721investment created, geographic distribution of tax refunds
722granted, and minority business participation. The report must
723indicate whether the moneys appropriated by the Legislature to
724the qualified applicant tax refund program were expended in a
725prudent, fiducially sound manner.
726     (d)(e)  Funds specifically appropriated for the tax refund
727program under this section may not be used for any purpose other
728than the payment of tax refunds authorized by this section.
729     (8)  EXPIRATION.--An applicant may not be certified as
730qualified under this section after June 30, 2014 2010. A tax
731refund agreement existing on that date shall continue in effect
732in accordance with its terms.
733     Section 2.  Paragraph (f) of subsection (2) of section
73414.2015, Florida Statutes, is amended to read:
735     14.2015  Office of Tourism, Trade, and Economic
736Development; creation; powers and duties.--
737     (2)  The purpose of the Office of Tourism, Trade, and
738Economic Development is to assist the Governor in working with
739the Legislature, state agencies, business leaders, and economic
740development professionals to formulate and implement coherent
741and consistent policies and strategies designed to provide
742economic opportunities for all Floridians. To accomplish such
743purposes, the Office of Tourism, Trade, and Economic Development
744shall:
745     (f)1.  Administer the Florida Enterprise Zone Act under ss.
746290.001-290.016, the community contribution tax credit program
747under ss. 220.183 and 624.5105, the tax refund program for
748qualified target industry businesses under s. 288.106, the tax-
749refund program for qualified defense contractors and space
750flight business contractors under s. 288.1045, contracts for
751transportation projects under s. 288.063, the sports franchise
752facility program under s. 288.1162, the professional golf hall
753of fame facility program under s. 288.1168, the expedited
754permitting process under s. 403.973, the Rural Community
755Development Revolving Loan Fund under s. 288.065, the Regional
756Rural Development Grants Program under s. 288.018, the Certified
757Capital Company Act under s. 288.99, the Florida State Rural
758Development Council, the Rural Economic Development Initiative,
759and other programs that are specifically assigned to the office
760by law, by the appropriations process, or by the Governor.
761Notwithstanding any other provisions of law, the office may
762expend interest earned from the investment of program funds
763deposited in the Grants and Donations Trust Fund to contract for
764the administration of the programs, or portions of the programs,
765enumerated in this paragraph or assigned to the office by law,
766by the appropriations process, or by the Governor. Such
767expenditures shall be subject to review under chapter 216.
768     2.  The office may enter into contracts in connection with
769the fulfillment of its duties concerning the Florida First
770Business Bond Pool under chapter 159, tax incentives under
771chapters 212 and 220, tax incentives under the Certified Capital
772Company Act in chapter 288, foreign offices under chapter 288,
773the Enterprise Zone program under chapter 290, the Seaport
774Employment Training program under chapter 311, the Florida
775Professional Sports Team License Plates under chapter 320,
776Spaceport Florida under chapter 331, Expedited Permitting under
777chapter 403, and in carrying out other functions that are
778specifically assigned to the office by law, by the
779appropriations process, or by the Governor.
780     Section 3.  Paragraph (k) of subsection (8) of section
781213.053, Florida Statutes, is amended to read:
782     213.053  Confidentiality and information sharing.--
783     (8)  Notwithstanding any other provision of this section,
784the department may provide:
785     (k)1.  Payment information relative to chapters 199, 201,
786202, 212, 220, 221, and 624 to the Office of Tourism, Trade, and
787Economic Development, or its employees or agents that are
788identified in writing by the office to the department, in the
789administration of the tax refund program for qualified defense
790contractors and space flight business contractors authorized by
791s. 288.1045 and the tax refund program for qualified target
792industry businesses authorized by s. 288.106.
793     2.  Information relative to tax credits taken by a business
794under s. 220.191 and exemptions or tax refunds received by a
795business under s. 212.08(5)(j) to the Office of Tourism, Trade,
796and Economic Development, or its employees or agents that are
797identified in writing by the office to the department, in the
798administration and evaluation of the capital investment tax
799credit program authorized in s. 220.191 and the semiconductor,
800defense, and space tax exemption program authorized in s.
801212.08(5)(j).
802
803Disclosure of information under this subsection shall be
804pursuant to a written agreement between the executive director
805and the agency. Such agencies, governmental or nongovernmental,
806shall be bound by the same requirements of confidentiality as
807the Department of Revenue. Breach of confidentiality is a
808misdemeanor of the first degree, punishable as provided by s.
809775.082 or s. 775.083.
810     Section 4.  This act shall take effect July 1, 2008.


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