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A bill to be entitled

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An act relating to super enterprise zones; amending s.

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212.02, F.S.; defining the "certified business" for

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purpose of a tax exemption provided to certain businesses

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located within a super enterprise zone; providing for

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future repeal; amending s. 212.08, F.S.; exempting certain

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property purchased for use or consumption by businesses in

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a super enterprise zone and retail sales by certified

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businesses in a super enterprise zone; providing an

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exception; specifying time periods for application of the

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exemptions for certain businesses; providing for future

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repeal; amending s. 290.0056, F.S.; providing additional

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responsibilities of an enterprise zone development agency

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relating to super enterprise zones; requiring an economic

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impact report; providing for future repeal; amending s.

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290.0057, F.S.; applying requirements for an enterprise

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zone development plan to super enterprise zones; creating

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s. 290.00681, F.S.; requiring the Office of Tourism,

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Trade, and Economic Development to designate specified

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areas in Miami-Dade County as pilot project super

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enterprise zones for a certain period; providing

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qualification criteria; providing application

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requirements; providing for future repeal and revocation

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of the designation; creating s. 290.00682, F.S.; providing

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requirements for qualification as a certified business for

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sales tax exemption purposes; authorizing a local

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enterprise zone development agency to certify businesses;

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requiring the agency to provide lists of certified

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businesses; providing for disqualifying certified

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businesses under certain circumstances; providing for

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future repeal and revocation of certifications; amending

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s. 290.007, F.S.; specifying incentives for revitalization

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of super enterprise zones; requiring interim and final

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reviews of super enterprise zones by the Office of Program

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Policy Analysis and Government Accountability; providing

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review of criteria; requiring reports to the Legislature;

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providing effective dates.

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

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     Section 1.  Subsection (34) is added to section 212.02,

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Florida Statutes, to read:

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     212.02  Definitions.--The following terms and phrases when

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used in this chapter have the meanings ascribed to them in this

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section, except where the context clearly indicates a different

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meaning:

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     (34) "Certified business" means a business located in a

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super enterprise zone that is certified under s. 290.00682. This

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subsection is repealed June 30, 2021.

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     Section 2.  Subsection (19) is added to section 212.08,

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Florida Statutes, to read:

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     212.08  Sales, rental, use, consumption, distribution, and

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storage tax; specified exemptions.--The sale at retail, the

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rental, the use, the consumption, the distribution, and the

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storage to be used or consumed in this state of the following are

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hereby specifically exempt from the tax imposed by this chapter.

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     (19) EXEMPTIONS; SUPER ENTERPRISE ZONES.--

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     (a) The tax imposed by this chapter does not apply to:

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     1. Tangible personal property purchased by a certified

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business for the exclusive use or consumption of that business

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within a super enterprise zone; or

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     2. Retail sales of tangible personal property made by a

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certified business from a place of business that is owned or

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leased and operated by the business for the purpose of making

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retail sales and that is located in a super enterprise zone. The

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exemption provided by this subparagraph does not apply to the

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retail sale of any item having a price greater than $1,000. In

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order to qualify for the exemption under this subparagraph, the

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purchaser must take possession of the qualified item within the

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super enterprise zone or the qualified item must be shipped from

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inside the super enterprise zone; however, the item may be

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shipped to any location. For purposes of this section, each

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qualified sale made by a certified business that is located in a

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super enterprise zone shall be deemed to have occurred within the

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super enterprise zone regardless of where the transfer of title

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or possession takes place.

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     (b) Notwithstanding paragraph (a), a new business

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established in a super enterprise zone and certified on or after

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July 1, 2009, pursuant to s. 290.00682, is eligible for the

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exemptions provided under this subsection for a period not to

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exceed 10 years immediately following such certification. For an

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existing business located in a super enterprise zone and

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certified on or after July 1, 2009, the exemptions provided under

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this subsection are available for a period not to exceed 5 years,

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beginning in the year in which the business receives its initial

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certification and continuing for up to 5 years immediately

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following such certification.

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     (c) This subsection is repealed June 30, 2021.

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     Section 3.  Paragraph (i) is added to subsection (8) of

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section 290.0056, Florida Statutes, present paragraph (f) of

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subsection (11) of that section is redesignated as paragraph (g),

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and a new paragraph (f) is added to that subsection, to read:

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     290.0056  Enterprise zone development agency.--

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     (8)  The enterprise zone development agency shall have the

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following powers and responsibilities:

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     (i)1. To recommend and submit an application to the office

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for the designation of a super enterprise zone.

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     2. To coordinate with the local governmental entity for the

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exemptions from the sales and use tax provided under s.

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212.08(19).

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Notwithstanding section 11 of chapter 2005-287, Laws of Florida,

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this paragraph is repealed June 30, 2021.

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     (11)  Prior to December 1 of each year, the agency shall

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submit to the Office of Tourism, Trade, and Economic Development

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a complete and detailed written report setting forth:

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     (f) The economic impact of a super enterprise zone, if

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applicable, including:

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     1. A list of certified businesses and whether the business

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is new or where the business relocated from.

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     2. The number of jobs created.

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     3. The percentage of employees employed by certified

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businesses who reside in the super enterprise zone or in an

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enterprise zone within the same county.

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     4. The extent of capital investment by certified businesses

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within the zone.

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     5. The success of the super enterprise zone as measured by

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the strategic plan and methods identified in s. 290.0057(1)(i).

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Notwithstanding section 11 of chapter 2005-287, Laws of Florida,

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this paragraph is repealed June 30, 2020.

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     Section 4.  Subsection (1) of section 290.0057, Florida

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Statutes, is amended to read:

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     290.0057  Enterprise zone development plan.--

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     (1)  Any application for designation as a new enterprise

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zone or super enterprise zone must be accompanied by a strategic

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plan adopted by the governing body of the municipality or county,

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or the governing bodies of the county and one or more

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municipalities together. At a minimum, the plan must:

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     (a)  Briefly describe the community's goals for revitalizing

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the area.

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     (b)  Describe the ways in which the community's approaches

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to economic development, social and human services,

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transportation, housing, community development, public safety,

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and educational and environmental concerns will be addressed in a

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coordinated fashion, and explain how these linkages support the

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community's goals.

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     (c)  Identify and describe key community goals and the

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barriers that restrict the community from achieving these goals,

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including a description of poverty and general distress, barriers

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to economic opportunity and development, and barriers to human

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development.

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     (d)  Describe the process by which the affected community is

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a full partner in the process of developing and implementing the

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plan and the extent to which local institutions and organizations

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have contributed to the planning process.

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     (e)  Commit the governing body or bodies to enact and

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maintain local fiscal and regulatory incentives, if approval for

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the area is received under s. 290.0065. These incentives may

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include the municipal public service tax exemption provided by s.

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166.231, the economic development ad valorem tax exemption

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provided by s. 196.1995, the business tax exemption provided by

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s. 205.054, local impact fee abatement or reduction, or low-

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interest or interest-free loans or grants to businesses to

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encourage the revitalization of the nominated area.

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     (f)  Identify the amount of local and private resources that

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will be available in the nominated area and the private-public

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private/public partnerships to be used, which may include

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participation by, and cooperation with, universities, community

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colleges, small business development centers, black business

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investment corporations, certified development corporations, and

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other private and public entities.

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     (g)  Indicate how state enterprise zone tax incentives and

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state, local, and federal resources will be used utilized within

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the nominated area.

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     (h)  Identify the funding requested under any state or

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federal program in support of the proposed economic, human,

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community, and physical development and related activities.

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     (i)  Identify baselines, methods, and benchmarks for

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measuring the success of carrying out the strategic plan.

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     Section 5.  Sections 290.00681 and 290.00682, Florida

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Statutes, are created to read:

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     290.00681 Super enterprise zone pilot project; designation;

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future repeal and revocation.--

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     (1) The Office of Tourism, Trade, and Economic Development

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shall designate four areas in the state as super enterprise zones

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for a 10-year period. These areas shall serve as a pilot project

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for this program. Specifically, the area in Miami-Dade County

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bordered by Northwest 23rd Street to the north, Northwest 5th

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Street to the south, Northeast 1st Avenue to the east, and

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Northwest 8th Avenue to the west shall be designated as a super

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enterprise zone and the area of Overtown in Miami-Dade County

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shall be designated as super enterprise zones. In order to

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qualify as a super enterprise zone an area must:

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     (a) Be located in an enterprise zone and be no larger than

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3 contiguous square miles.

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     (b) Have an average unemployment rate four times greater

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than the state average.

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     (c) Have a minimum of 40 percent of residents living below

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the federal poverty level.

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     (d) Have general distress of business and residential

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property such that the local governing body by resolution has

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determined that the buildings are substandard, unsafe,

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unsanitary, dilapidated, or obsolete, or any combination of such

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conditions, and are detrimental to the safety, health, and

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welfare of the community.

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     (e) Demonstrate evidence of significant job loss or

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dislocation in the area.

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In determining whether an area meets the criteria of this

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subsection for unemployment, poverty, and general distress, the

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office shall use data from the most current decennial census and

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from information published by the Bureau of the Census and the

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Bureau of Labor Statistics. The data shall be comparable in point

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or period of time and methodology employed.

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     (2) Any application for designation as a super enterprise

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zone must:

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     (a) Briefly describe the community's goals for revitalizing

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the area and include a development plan.

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     (b) Describe the ways in which the community's approach to

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economic development, social and human services, transportation,

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housing, community development, public safety, and educational

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and environmental concerns will be addressed in a coordinated

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fashion and explain how these linkages support the community's

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goals.

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     (c) Identify and describe key community goals and the

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barriers that restrict the community from achieving these goals.

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     (d) Identify the amount of local and private support and

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resources that will be available.

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     (e) Identify baselines, methods, and benchmarks for

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measuring success.

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     (f) Include written approval from any associated county

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office and mayor's office.

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     (3) This section is repealed June 30, 2021, and any

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designation made pursuant to this section shall be revoked on

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that date.

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     290.00682 Super enterprise zones; business certification.--

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     (1) A certified business is eligible for the tax exemptions

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provided in s. 212.08(19). In order to qualify as a certified

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business, receive an exemption certificate, and continue to

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receive the tax exemptions provided in s. 212.08(19), a business

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must:

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     (a) File an application for certification with the local

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enterprise zone development agency. The application shall be

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filed no later than September 1 preceding the calendar year for

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which the business is seeking an exemption.

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     (b) Operate and be located within a designated super

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enterprise zone.

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     (c) Create new employment within the super enterprise zone

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while not causing unemployment elsewhere in the state.

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     (d) Certify to the best of the business's knowledge that

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the business has no delinquent federal or state tax obligations.

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     (e) Demonstrate that no fewer than 20 percent of its

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employees are residents of the designated super enterprise zone

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or an enterprise zone located within the same county. The

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employment requirement may be waived by the local enterprise zone

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development agency for good cause.

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     (2) A local enterprise zone development agency may certify

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a business as eligible for the exemptions under s. 212.08(19)

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annually if the business meets the requirements in subsection

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(1). Each local enterprise zone development agency shall

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annually provide the local governmental entity, the office, and

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the Department of Revenue with a list of new and existing

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certified businesses. The Department of Revenue shall annually

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issue a tax exemption certificate to each business holding an

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exemption certificate issued by the local enterprise zone

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development agency. The certificate shall be good for 1 calendar

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year.

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     (3) A local enterprise zone development agency may

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disqualify a certified business at any time if the business fails

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to meet the requirements of subsection (1). A business that makes

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a fraudulent claim under this section or for tax exemptions

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provided in s. 212.08(19) is liable for the payment of the tax

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due, together with the penalties set forth in s. 212.085, and as

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otherwise provided by law.

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     (4) This section is repealed June 30, 2021, and any

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certification made pursuant to this section shall be revoked on

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that date.

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     Section 6.  Section 290.007, Florida Statutes, is amended to

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read:

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     290.007 State incentives available in enterprise zones and

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super enterprise zones.--

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     (1) The following incentives are provided by the state to

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encourage the revitalization of enterprise zones:

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     (a)(1) The enterprise zone jobs credit provided in s.

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220.181.

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     (b)(2) The enterprise zone property tax credit provided in

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s. 220.182.

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     (c)(3) The community contribution tax credits provided in

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ss. 212.08, 220.183, and 624.5105.

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     (d)(4) The sales tax exemption for building materials used

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in the rehabilitation of real property in enterprise zones

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provided in s. 212.08(5)(g).

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     (e)(5) The sales tax exemption for business equipment used

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in an enterprise zone provided in s. 212.08(5)(h).

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     (f)(6) The sales tax exemption for electrical energy used

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in an enterprise zone provided in s. 212.08(15).

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     (g)(7) The enterprise zone jobs credit against the sales

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tax provided in s. 212.096.

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     (h)(8) Notwithstanding any law to the contrary, the Public

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Service Commission may allow public utilities and

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telecommunications companies to grant discounts of up to 50

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percent on tariffed rates for services to small businesses

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located in an enterprise zone designated pursuant to s. 290.0065.

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Such discounts may be granted for a period not to exceed 5 years.

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For purposes of this paragraph subsection, the term "public

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utility" has the same meaning as in s. 366.02(1) and the term

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"telecommunications company" has the same meaning as in s.

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364.02(14).

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     (2) The following incentives are provided by the state to

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encourage the revitalization of super enterprise zones:

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     (a) The sales tax exemption for certified businesses

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provided in s. 212.08(19)(a)1.

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     (b) The sales tax exemption for retail sales by certified

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businesses provided in s. 212.08(19)(a)2.

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     Section 7. Before the 2015 Regular Session of the

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Legislature, the Office of Program Policy Analysis and Government

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Accountability shall conduct an interim review and evaluation of

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the effectiveness and viability of the super enterprise zones

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designated under s. 290.00681, Florida Statutes. The office shall

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specifically evaluate whether relief from the specified taxes

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caused or induced new investment and development in the super

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enterprise zones; increased the number of jobs created or

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retained in the super enterprise zones; caused or induced the

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renovation, rehabilitation, restoration, improvement, or new

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construction of businesses or housing within the super enterprise

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zones; or contributed to the economic viability and profitability

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of business and commerce located within the super enterprise

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zones. The office shall submit a report of its findings and

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recommendations to the President of the Senate and the Speaker of

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the House of Representatives no later than December 1, 2014. In

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2020, the office shall conduct a final review in accordance with

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this section and shall make a final report to the President of

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the Senate and the Speaker of the House of Representatives no

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later than December 1, 2020.

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     Section 8.  This act shall take effect July 1, 2008.