Florida Senate - 2008 COMMITTEE AMENDMENT

Bill No. SB 2666

310264

CHAMBER ACTION

Senate

Comm: FAV

4/10/2008

House

The Committee on Finance and Tax (Storms) recommended the

following amendment:

Senate Amendment (with title amendment)

Delete everything after the enacting clause

and insert:

Section 1. Section 288.1045, Florida Statutes, is amended

to read:

288.1045 Qualified defense contractor and space flight

business tax refund program.--

(1) DEFINITIONS.--As used in this section:

(a) "Consolidation of a Department of Defense contract"

means the consolidation of one or more of an applicant's

facilities under one or more Department of Defense contracts

either from outside this state or from inside and outside this

state, into one or more of the applicant's facilities inside this

state.

(b) "Average wage in the area" means the average of all

wages and salaries in the state, the county, or in the standard

metropolitan area in which the business unit is located.

valid Department of Defense contract, space flight business

contract, or any business entity that is a subcontractor under a

valid Department of Defense contract, space flight business

contract, or any business entity that holds a valid contract for

the reuse of a defense-related facility, including all members of

an affiliated group of corporations as defined in s.

220.03(1)(b).

(d) "Office" means the Office of Tourism, Trade, and

Economic Development.

(e) "Department of Defense contract" means a competitively

bid Department of Defense contract or subcontract or a

competitively bid federal agency contract or subcontract issued

on behalf of the Department of Defense for manufacturing,

assembling, fabricating, research, development, or design with a

duration of 2 or more years, but excluding any contract or

subcontract to provide goods, improvements to real or tangible

property, or services directly to or for any particular military

base or installation in this state. The term includes contracts

or subcontracts for products or services for military use or

homeland security which contracts or subcontracts are approved by

the United States Department of Defense, the United States

Department of State, or the United States Department of Homeland

Security.

(f) "New Department of Defense contract" means a Department

of Defense contract entered into after the date application for

certification as a qualified applicant is made and after January

1, 1994.

(g) "Jobs" means full-time equivalent positions, consistent

with the use of such terms by the Agency for Workforce Innovation

for the purpose of unemployment compensation tax, created or

retained as a direct result of a project in this state. This

number does not include temporary construction jobs involved with

the construction of facilities for the project.

(h) "Nondefense production jobs" means employment

exclusively for activities that, directly or indirectly, are

unrelated to the Department of Defense.

(i) "Project" means any business undertaking in this state

under a new Department of Defense contract, new space flight

business contract, consolidation of a space flight business

contract, consolidation of a Department of Defense contract, or

conversion of defense production jobs over to nondefense

production jobs or reuse of defense-related facilities.

(j) "Qualified applicant" means an applicant that has been

approved by the director to be eligible for tax refunds pursuant

to this section.

(k) "Director" means the director of the Office of Tourism,

Trade, and Economic Development.

(l) "Taxable year" means the same as in s. 220.03(1)(y).

(m) "Fiscal year" means the fiscal year of the state.

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

s. 443.036, that is registered with the Agency for Workforce

Innovation for unemployment compensation purposes or means a

subcategory or division of an employing unit that is accepted by

the Agency for Workforce Innovation as a reporting unit.

(o) "Local financial support" means funding from local

sources, public or private, which is paid to the Economic

Development Trust Fund and which is equal to 20 percent of the

annual tax refund for a qualified applicant. Local financial

support may include excess payments made to a utility company

under a designated program to allow decreases in service by the

utility company under conditions, regardless of when application

is made. A qualified applicant may not provide, directly or

indirectly, more than 5 percent of such funding in any fiscal

year. The sources of such funding may not include, directly or

indirectly, state funds appropriated from the General Revenue

Fund or any state trust fund, excluding tax revenues shared with

local governments pursuant to law.

(p) "Contract for reuse of a defense-related facility"

means a contract with a duration of 2 or more years for the use

of a facility for manufacturing, assembling, fabricating,

research, development, or design of tangible personal property,

but excluding any contract to provide goods, improvements to real

or tangible property, or services directly to or for any

particular military base or installation in this state. Such

facility must be located within a port, as defined in s. 313.21,

and have been occupied by a business entity that held a valid

Department of Defense contract or occupied by any branch of the

Armed Forces of the United States, within 1 year of any contract

100

being executed for the reuse of such facility. A contract for

101

reuse of a defense-related facility may not include any contract

102

for reuse of such facility for any Department of Defense contract

103

for manufacturing, assembling, fabricating, research,

104

development, or design.

105

(q) "Local financial support exemption option" means the

106

option to exercise an exemption from the local financial support

107

requirement available to any applicant whose project is located

108

in a county designated by the Rural Economic Development

109

Initiative, if the county commissioners of the county in which

110

the project will be located adopt a resolution requesting that

111

the applicant's project be exempt from the local financial

112

support requirement. Any applicant that exercises this option is

113

not eligible for more than 80 percent of the total tax refunds

114

allowed such applicant under this section.

115

(r) "Consolidation of a space flight business contract"

116

means the consolidation of one or more of an applicant's

117

facilities under one or more space flight business contracts,

118

from outside this state or from inside and outside this state,

119

into one or more of the applicant's facilities inside this state.

120

(s) "New space flight business contract" means a space

121

flight business contract entered into after an application for

122

certification as a qualified applicant is made after July 1,

123

2008.

124

(t) "Space flight business" means the manufacturing,

125

processing, or assembly of space flight technology products,

126

space flight facilities, space flight propulsion systems, or

127

space vehicles, satellites, or stations of any kind possessing

128

the capability for space flight, as defined by s. 212.02(23), or

129

components thereof, and includes, activities supporting space

130

flight, vehicle launch activities, flight operations, ground

131

control or ground support, and all administrative activities

132

directly related to such activities. The term does not include

133

products that are designed or manufactured for general commercial

134

aviation or other uses even if those products may also serve an

135

incidental use in space flight applications.

136

(u) "Space flight business contract" means a competitively

137

bid federal agency contract, federal agency subcontract, an

138

awarded commercial contract, or an awarded commercial subcontract

139

for space flight business having a duration of 2 or more years.

140

(2) GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.--

141

(a) There shall be allowed, from the Economic Development

142

Trust Fund, a refund to a qualified applicant for the amount of

143

eligible taxes certified by the director which were paid by such

144

qualified applicant. The total amount of refunds for all fiscal

145

years for each qualified applicant shall be determined pursuant

146

to subsection (3). The annual amount of a refund to a qualified

147

applicant shall be determined pursuant to subsection (5).

148

(b) Upon approval by the director, a qualified applicant

149

may receive tax refund payments equal to $3,000 times the number

150

of jobs specified in the tax refund agreement under subparagraph

151

(4)(a)1. or equal to $6,000 times the number of jobs if the

152

project is located in a rural county or an enterprise zone.

153

Further, a qualified applicant is allowed additional tax refund

154

payments equal to $1,000 times the number of jobs specified in

155

the tax refund agreement under subparagraph (4)(a)1. if such jobs

156

pay an annual average wage of at least 150 percent of the average

157

private-sector wage in the area or equal to $2,000 times the

158

number of jobs if such jobs pay an annual average wage of at

159

least 200 percent of the average private-sector wage in the area.

160

A qualified applicant may not be qualified for any project to

161

receive more than $5,000 times the number of jobs provided in the

162

tax refund agreement pursuant to subparagraph (4)(a)1. A

163

qualified applicant may not receive refunds of more than 25

164

percent of the total tax refunds provided in the tax refund

165

agreement pursuant to subparagraph (4)(a)1. in any fiscal year,

166

provided that no qualified applicant may receive more than $2.5

167

million in tax refunds pursuant to this section in any fiscal

168

year.

169

170

million in tax refunds pursuant to this section in all fiscal

171

years.

172

(d) Contingent upon an annual appropriation by the

173

Legislature, the director may approve not more in tax refunds

174

than the amount appropriated to the Economic Development Trust

175

Fund for tax refunds, for a fiscal year pursuant to subsection

176

(5) and s. 288.095.

177

(e) For the first 6 months of each fiscal year, the

178

director shall set aside 30 percent of the amount appropriated

179

for refunds pursuant to this section by the Legislature to

180

provide tax refunds only to qualified applicants who employ 500

181

or fewer full-time employees in this state. Any unencumbered

182

funds remaining undisbursed from this set-aside at the end of the

183

6-month period may be used to provide tax refunds for any

184

qualified applicants pursuant to this section.

185

(f) After entering into a tax refund agreement pursuant to

186

subsection (4), a qualified applicant may:

187

1. Receive refunds from the account for corporate income

188

taxes due and paid under chapter 220 by that business beginning

189

with the first taxable year of the business which begins after

190

entering into the agreement.

191

2. Receive refunds from the account Economic Development

192

Trust Fund for the following taxes due and paid by that business

193

the qualified applicant beginning with the applicant's first

194

taxable year that begins after entering into the agreement:

195

a.1. Taxes on sales, use, and other transactions paid

196

pursuant to chapter 212.

197

2. Corporate income taxes paid pursuant to chapter 220.

198

b. 3. Intangible personal property taxes paid pursuant to

199

chapter 199.

200

c.4. Emergency excise taxes paid pursuant to chapter 221.

201

d.5. Excise taxes paid on documents pursuant to chapter

202

201.

203

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

204

on June 1, 1996.

205

f.7. State communications services taxes administered under

206

chapter 202. This provision does not apply to the gross receipts

207

tax imposed under chapter 203 and administered under chapter 202

208

or the local communications services tax authorized under s.

209

202.19.

210

211

However, a qualified applicant may not receive a tax refund

212

pursuant to this section for any amount of credit, refund, or

213

exemption granted such contractor for any of such taxes. If a

214

refund for such taxes is provided by the office, which taxes are

215

subsequently adjusted by the application of any credit, refund,

216

or exemption granted to the qualified applicant other than that

217

provided in this section, the qualified applicant shall reimburse

218

the Economic Development Trust Fund for the amount of such

219

credit, refund, or exemption. A qualified applicant must notify

220

and tender payment to the office within 20 days after receiving a

221

credit, refund, or exemption, other than that provided in this

222

section. The addition of communications services taxes

223

administered under chapter 202 is remedial in nature and

224

retroactive to October 1, 2001. The office may make supplemental

225

tax refund payments to allow for tax refunds for communications

226

services taxes paid by an eligible qualified defense contractor

227

after October 1, 2001.

228

(g) Any qualified applicant who fraudulently claims this

229

refund is liable for repayment of the refund to the Economic

230

Development Trust Fund plus a mandatory penalty of 200 percent of

231

the tax refund which shall be deposited into the General Revenue

232

Fund. Any qualified applicant who fraudulently claims this refund

233

commits a felony of the third degree, punishable as provided in

234

s. 775.082, s. 775.083, or s. 775.084.

235

(h) Funds made available pursuant to this section may not

236

be expended in connection with the relocation of a business from

237

one community to another community in this state unless the

238

Office of Tourism, Trade, and Economic Development determines

239

that without such relocation the business will move outside this

240

state or determines that the business has a compelling economic

241

rationale for the relocation which creates additional jobs.

242

(3) APPLICATION PROCESS; REQUIREMENTS; AGENCY

243

DETERMINATION.--

244

(a) To apply for certification as a qualified applicant

245

pursuant to this section, an applicant must file an application

246

with the office which satisfies the requirements of paragraphs

247

(b) and (e), paragraphs (c) and (e), or paragraphs (d) and (e),

248

or paragraphs (e) and (k). An applicant may not apply for

249

certification pursuant to this section after a proposal has been

250

submitted for a new Department of Defense contract, after the

251

applicant has made the decision to consolidate an existing

252

Department of Defense contract in this state for which such

253

applicant is seeking certification, after a proposal has been

254

submitted for a new space flight business contract in this state,

255

after the applicant has made the decision to consolidate an

256

existing space flight business contract in this state for which

257

such applicant is seeking certification, or after the applicant

258

has made the decision to convert defense production jobs to

259

nondefense production jobs for which such applicant is seeking

260

certification.

261

(b) Applications for certification based on the

262

consolidation of a Department of Defense contract or a new

263

Department of Defense contract must be submitted to the office as

264

prescribed by the office and must include, but are not limited

265

to, the following information:

266

1. The applicant's federal employer identification number,

267

the applicant's Florida sales tax registration number, and a

268

notarized signature of an officer of the applicant.

269

2. The permanent location of the manufacturing, assembling,

270

fabricating, research, development, or design facility in this

271

state at which the project is or is to be located.

272

3. The Department of Defense contract numbers of the

273

contract to be consolidated, the new Department of Defense

274

contract number, or the "RFP" number of a proposed Department of

275

Defense contract.

276

4. The date the contract was executed or is expected to be

277

executed, and the date the contract is due to expire or is

278

expected to expire.

279

5. The commencement date for project operations under the

280

contract in this state.

281

6. The number of net new full-time equivalent Florida jobs

282

included in the project as of December 31 of each year and the

283

average wage of such jobs.

284

7. The total number of full-time equivalent employees

285

employed by the applicant in this state.

286

8. The percentage of the applicant's gross receipts derived

287

from Department of Defense contracts during the 5 taxable years

288

immediately preceding the date the application is submitted.

289

9. The number of full-time equivalent jobs in this state to

290

be retained by the project.

291

10. The estimated amount of tax refunds to be claimed for

292

each fiscal year.

293

10.11. A brief statement concerning the applicant's need

294

for tax refunds, and the proposed uses of such refunds by the

295

applicant.

296

11.12. A resolution adopted by the governing board county

297

commissioners of the county or municipality in which the project

298

will be located, which recommends the applicant be approved as a

299

qualified applicant, and which indicates that the necessary

300

commitments of local financial support for the applicant exist.

301

Prior to the adoption of the resolution, the county commission

302

may review the proposed public or private sources of such support

303

and determine whether the proposed sources of local financial

304

support can be provided or, for any applicant whose project is

305

located in a county designated by the Rural Economic Development

306

Initiative, a resolution adopted by the county commissioners of

307

such county requesting that the applicant's project be exempt

308

from the local financial support requirement.

309

12.13. Any additional information requested by the office.

310

311

of defense production jobs to nondefense production jobs must be

312

submitted to the office as prescribed by the office and must

313

include, but are not limited to, the following information:

314

1. The applicant's federal employer identification number,

315

the applicant's Florida sales tax registration number, and a

316

notarized signature of an officer of the applicant.

317

2. The permanent location of the manufacturing, assembling,

318

fabricating, research, development, or design facility in this

319

state at which the project is or is to be located.

320

3. The Department of Defense contract numbers of the

321

contract under which the defense production jobs will be

322

converted to nondefense production jobs.

323

4. The date the contract was executed, and the date the

324

contract is due to expire or is expected to expire, or was

325

canceled.

326

5. The commencement date for the nondefense production

327

operations in this state.

328

6. The number of net new full-time equivalent Florida jobs

329

included in the nondefense production project as of December 31

330

of each year and the average wage of such jobs.

331

7. The total number of full-time equivalent employees

332

employed by the applicant in this state.

333

8. The percentage of the applicant's gross receipts derived

334

from Department of Defense contracts during the 5 taxable years

335

immediately preceding the date the application is submitted.

336

9. The number of full-time equivalent jobs in this state to

337

be retained by the project.

338

10. The estimated amount of tax refunds to be claimed for

339

each fiscal year.

340

10.11. A brief statement concerning the applicant's need

341

for tax refunds, and the proposed uses of such refunds by the

342

applicant.

343

11.12. A resolution adopted by the governing board county

344

commissioners of the county or municipality in which the project

345

will be located, which recommends the applicant be approved as a

346

qualified applicant, and which indicates that the necessary

347

commitments of local financial support for the applicant exist.

348

Prior to the adoption of the resolution, the county commission

349

may review the proposed public or private sources of such support

350

and determine whether the proposed sources of local financial

351

support can be provided or, for any applicant whose project is

352

located in a county designated by the Rural Economic Development

353

Initiative, a resolution adopted by the county commissioners of

354

such county requesting that the applicant's project be exempt

355

from the local financial support requirement.

356

12.13. Any additional information requested by the office.

357

(d) Applications for certification based on a contract for

358

reuse of a defense-related facility must be submitted to the

359

office as prescribed by the office and must include, but are not

360

limited to, the following information:

361

1. The applicant's Florida sales tax registration number

362

and a notarized signature of an officer of the applicant.

363

2. The permanent location of the manufacturing, assembling,

364

fabricating, research, development, or design facility in this

365

state at which the project is or is to be located.

366

3. The business entity holding a valid Department of

367

Defense contract or branch of the Armed Forces of the United

368

States that previously occupied the facility, and the date such

369

entity last occupied the facility.

370

4. A copy of the contract to reuse the facility, or such

371

alternative proof as may be prescribed by the office that the

372

applicant is seeking to contract for the reuse of such facility.

373

5. The date the contract to reuse the facility was executed

374

or is expected to be executed, and the date the contract is due

375

to expire or is expected to expire.

376

6. The commencement date for project operations under the

377

contract in this state.

378

7. The number of net new full-time equivalent Florida jobs

379

included in the project as of December 31 of each year and the

380

average wage of such jobs.

381

8. The total number of full-time equivalent employees

382

employed by the applicant in this state.

383

9. The number of full-time equivalent jobs in this state to

384

be retained by the project.

385

10. The estimated amount of tax refunds to be claimed for

386

each fiscal year.

387

10.11. A brief statement concerning the applicant's need

388

for tax refunds, and the proposed uses of such refunds by the

389

applicant.

390

11.12. A resolution adopted by the governing board county

391

commissioners of the county or municipality in which the project

392

will be located, which recommends the applicant be approved as a

393

qualified applicant, and which indicates that the necessary

394

commitments of local financial support for the applicant exist.

395

Prior to the adoption of the resolution, the county commission

396

may review the proposed public or private sources of such support

397

and determine whether the proposed sources of local financial

398

support can be provided or, for any applicant whose project is

399

located in a county designated by the Rural Economic Development

400

Initiative, a resolution adopted by the county commissioners of

401

such county requesting that the applicant's project be exempt

402

from the local financial support requirement.

403

12.13. Any additional information requested by the office.

404

(e) To qualify for review by the office, the application of

405

an applicant must, at a minimum, establish the following to the

406

satisfaction of the office:

407

1. The jobs proposed to be provided under the application,

408

pursuant to subparagraph (b)6. or subparagraph (c)6., or

409

subparagraph (k)6., must pay an estimated annual average wage

410

equaling at least 115 percent of the average wage in the area

411

where the project is to be located.

412

2. The consolidation of a Department of Defense contract

413

must result in a net increase of at least 25 percent in the

414

number of jobs at the applicant's facilities in this state or the

415

addition of at least 80 jobs at the applicant's facilities in

416

this state.

417

3. The conversion of defense production jobs to nondefense

418

production jobs must result in net increases in nondefense

419

employment at the applicant's facilities in this state.

420

4. The Department of Defense contract or the space flight

421

business contract cannot allow the business to include the costs

422

of relocation or retooling in its base as allowable costs under a

423

cost-plus, or similar, contract.

424

5. A business unit of the applicant must have derived not

425

less than 60 percent of its gross receipts in this state from

426

Department of Defense contracts or the space flight business

427

contract over the applicant's last fiscal year, and must have

428

derived not less than an average of 60 percent of its gross

429

receipts in this state from Department of Defense contracts over

430

the 5 years preceding the date an application is submitted

431

pursuant to this section. This subparagraph does not apply to any

432

application for certification based on a contract for reuse of a

433

defense-related facility.

434

6. The reuse of a defense-related facility must result in

435

the creation of at least 100 jobs at such facility.

436

7. A new space flight business contract or the

437

consolidation of a space flight business contract must result in

438

net increases in space flight business employment at the

439

applicant's facilities in this state.

440

(f) Each application meeting the requirements of paragraphs

441

(b) and (e), paragraphs (c) and (e), or paragraphs (d) and (e),

442

or paragraphs (e) and (k) must be submitted to the office for a

443

determination of eligibility. The office shall review and,

444

evaluate, and score each application based on, but not limited

445

to, the following criteria:

446

1. Expected contributions to the state strategic economic

447

development plan adopted by Enterprise Florida, Inc., taking into

448

account the extent to which the project contributes to the

449

state's high-technology base, and the long-term impact of the

450

project and the applicant on the state's economy.

451

2. The economic benefit of the jobs created or retained by

452

the project in this state, taking into account the cost and

453

average wage of each job created or retained, and the potential

454

risk to existing jobs.

455

3. The amount of capital investment to be made by the

456

applicant in this state.

457

4. The local commitment and support for the project and

458

applicant.

459

5. The impact of the project on the local community, taking

460

into account the unemployment rate for the county where the

461

project will be located.

462

6. The dependence of the local community on the defense

463

industry or space flight business.

464

7. The impact of any tax refunds granted pursuant to this

465

section on the viability of the project and the probability that

466

the project will occur in this state if such tax refunds are

467

granted to the applicant, taking into account the expected long-

468

term commitment of the applicant to economic growth and

469

employment in this state.

470

8. The length of the project, or the expected long-term

471

commitment to this state resulting from the project.

472

(g) The office shall forward its written findings and

473

evaluation on each application meeting the requirements of

474

paragraphs (b) and (e), paragraphs (c) and (e), or paragraphs (d)

475

and (e), or paragraphs (e) and (k) to the director within 60

476

calendar days after receipt of a complete application. The office

477

shall notify each applicant when its application is complete, and

478

when the 60-day period begins. In its written report to the

479

director, the office shall specifically address each of the

480

factors specified in paragraph (f), and shall make a specific

481

assessment with respect to the minimum requirements established

482

in paragraph (e). The office shall include in its report

483

projections of the tax refunds the applicant would be eligible to

484

receive in each fiscal year based on the creation and maintenance

485

of the net new Florida jobs specified in subparagraph (b)6.,

486

subparagraph (c)6., or subparagraph (d)7., or paragraphs (e) and

487

(k) as of December 31 of the preceding state fiscal year.

488

(h) Within 30 days after receipt of the office's findings

489

and evaluation, the director shall issue a letter of

490

certification which either approves or disapproves an

491

application. The decision must be in writing and provide the

492

justifications for either approval or disapproval. If

493

appropriate, the director shall enter into a written agreement

494

with the qualified applicant pursuant to subsection (4).

495

(i) The director may not certify any applicant as a

496

qualified applicant when the value of tax refunds to be included

497

in that letter of certification exceeds the available amount of

498

authority to certify new businesses as determined in s.

499

288.095(3). A letter of certification that approves an

500

application must specify the maximum amount of a tax refund that

501

is to be available to the contractor for each fiscal year and the

502

total amount of tax refunds for all fiscal years.

503

(j) This section does not create a presumption that an

504

applicant should receive any tax refunds under this section.

505

(k) Applications for certification based upon a new space

506

flight business contract or the consolidation of a space flight

507

business contract must be submitted to the office as prescribed

508

by the office and must include, but need not be limited to, the

509

following:

510

1. The applicant's federal employer identification number,

511

the applicant's Florida sales tax registration number, and a

512

signature of an officer of the applicant.

513

2. The permanent location of the space flight business

514

facility in this state where the project is or will be located.

515

3. The new space flight business contract number, the space

516

flight business contract numbers of the contract to be

517

consolidated, or the request-for-proposal number of a proposed

518

space flight business contract.

519

4. The date the contract was executed and the date the

520

contract is due to expire, is expected to expire, or was

521

canceled.

522

5. The commencement date for project operations under the

523

contract in this state.

524

6. The number of net new full-time equivalent Florida jobs

525

included in the project as of December 31 of each year and the

526

average wage of such jobs.

527

7. The total number of full-time equivalent employees

528

employed by the applicant in this state.

529

8. The percentage of the applicant's gross receipts derived

530

from space flight business contracts during the 5 taxable years

531

immediately preceding the date the application is submitted.

532

9. The number of full-time equivalent jobs in this state to

533

be retained by the project.

534

10. A brief statement concerning the applicant's need for

535

tax refunds and the proposed uses of such refunds by the

536

applicant.

537

11. A resolution adopted by the governing board of the

538

county or municipality in which the project will be located which

539

recommends the applicant be approved as a qualified applicant and

540

indicates that the necessary commitments of local financial

541

support for the applicant exist. Prior to the adoption of the

542

resolution, the county commission may review the proposed public

543

or private sources of such support and determine whether the

544

proposed sources of local financial support can be provided or,

545

for any applicant whose project is located in a county designated

546

by the Rural Economic Development Initiative, a resolution

547

adopted by the county commissioners of such county requesting

548

that the applicant's project be exempt from the local financial

549

support requirement.

550

12. Any additional information requested by the office.

551

(4) QUALIFIED APPLICANT DEFENSE CONTRACTOR TAX REFUND

552

AGREEMENT.--

553

(a) A qualified applicant shall enter into a written

554

agreement with the office containing, but not limited to, the

555

following:

556

1. The total number of full-time equivalent jobs in this

557

state that are or will be dedicated to the qualified applicant's

558

project, the average wage of such jobs, the definitions that will

559

apply for measuring the achievement of these terms during the

560

pendency of the agreement, and a time schedule or plan for when

561

such jobs will be in place and active in this state.

562

2. The maximum amount of a refund that the qualified

563

applicant is eligible to receive for each fiscal year, based on

564

the job creation or retention and maintenance schedule specified

565

in subparagraph 1.

566

3. An agreement with the office allowing the office to

567

review and verify the financial and personnel records of the

568

qualified applicant to ascertain whether the qualified applicant

569

is complying with the requirements of this section.

570

4. The date by which, in each fiscal year, the qualified

571

applicant may file a claim pursuant to subsection (5) to be

572

considered to receive a tax refund in the following fiscal year.

573

5. That local financial support shall be annually available

574

and will be paid to the Economic Development Trust Fund.

575

(b) Compliance with the terms and conditions of the

576

agreement is a condition precedent for receipt of tax refunds

577

each year. The failure to comply with the terms and conditions of

578

the agreement shall result in the loss of eligibility for receipt

579

of all tax refunds previously authorized pursuant to this

580

section, and the revocation of the certification as a qualified

581

applicant by the director, unless the qualified applicant is

582

eligible to receive and elects to accept a prorated refund under

583

paragraph (5)(g) or the office grants the qualified applicant an

584

economic-stimulus exemption.

585

1. A qualified applicant may submit, in writing, a request

586

to the office for an economic-stimulus exemption. The request

587

must provide quantitative evidence demonstrating how negative

588

economic conditions in the qualified applicant's industry, the

589

effects of the impact of a named hurricane or tropical storm, or

590

specific acts of terrorism affecting the qualified applicant have

591

prevented the qualified applicant from complying with the terms

592

and conditions of its tax refund agreement.

593

2. Upon receipt of a request under subparagraph 1., the

594

director shall have 45 days to notify the requesting qualified

595

applicant, in writing, if its exemption has been granted or

596

denied. In determining if an exemption should be granted, the

597

director shall consider the extent to which negative economic

598

conditions in the requesting qualified applicant's industry, the

599

effects of the impact of a named hurricane or tropical storm, or

600

specific acts of terrorism affecting the qualified applicant have

601

prevented the qualified applicant from complying with the terms

602

and conditions of its tax refund agreement.

603

3. As a condition for receiving a prorated refund under

604

paragraph (5)(g) or an economic-stimulus exemption under this

605

paragraph, a qualified applicant must agree to renegotiate its

606

tax refund agreement with the office to, at a minimum, ensure

607

that the terms of the agreement comply with current law and

608

office procedures governing application for and award of tax

609

refunds. Upon approving the award of a prorated refund or

610

granting an economic-stimulus exemption, the office shall

611

renegotiate the tax refund agreement with the qualified applicant

612

as required by this subparagraph. When amending the agreement of

613

a qualified applicant receiving an economic-stimulus exemption,

614

the office may extend the duration of the agreement for a period

615

not to exceed 2 years.

616

4. A qualified applicant may submit a request for an

617

economic-stimulus exemption to the office in lieu of any tax

618

refund claim scheduled to be submitted after January 1, 2005, but

619

before July 1, 2006.

620

5. A qualified applicant that receives an economic-stimulus

621

exemption may not receive a tax refund for the period covered by

622

the exemption.

623

624

authorized officer of the qualified applicant.

625

(d) The agreement must contain the following legend,

626

clearly printed on its face in bold type of not less than 10

627

points:

628

629

"This agreement is neither a general obligation of the State of

630

Florida, nor is it backed by the full faith and credit of the

631

State of Florida. Payment of tax refunds are conditioned on and

632

subject to specific annual appropriations by the Florida

633

Legislature of funds sufficient to pay amounts authorized in s.

634

288.1045, Florida Statutes."

635

(5) ANNUAL CLAIM FOR REFUND FROM A QUALIFIED DEFENSE

636

CONTRACTOR.--

637

(a) To be eligible to claim any scheduled tax refund,

638

qualified applicants who have entered into a written agreement

639

with the office pursuant to subsection (4) and who have entered

640

into a valid new Department of Defense contract, entered into a

641

valid new space flight business contract, commenced the

642

consolidation of a space flight business contract, commenced the

643

consolidation of a Department of Defense contract, commenced the

644

conversion of defense production jobs to nondefense production

645

jobs, or entered into a valid contract for reuse of a defense-

646

related facility must apply by January 31 of each fiscal year to

647

the office for tax refunds scheduled to be paid from the

648

appropriation for the fiscal year that begins on July 1 following

649

the January 31 claims-submission date. The office may, upon

650

written request, grant a 30-day extension of the filing date. The

651

application must include a notarized signature of an officer of

652

the applicant.

653

(b) The claim for refund by the qualified applicant must

654

include a copy of all receipts pertaining to the payment of taxes

655

for which a refund is sought, and data related to achieving each

656

performance item contained in the tax refund agreement pursuant

657

to subsection (4). The amount requested as a tax refund may not

658

exceed the amount for the relevant fiscal year in the written

659

agreement entered pursuant to subsection (4).

660

661

applicant unless local financial support has been paid to the

662

Economic Development Trust Fund for that refund. If the local

663

financial support is less than 20 percent of the approved tax

664

refund, the tax refund shall be reduced. The tax refund paid may

665

not exceed 5 times the local financial support received. Funding

666

from local sources includes tax abatement under s. 196.1995 or

667

the appraised market value of municipal or county land, including

668

any improvements or structures, conveyed or provided at a

669

discount through a sale or lease to that provided to a qualified

670

applicant. The amount of any tax refund for an applicant approved

671

under this section shall be reduced by the amount of any such tax

672

abatement granted or the value of the land granted, including the

673

value of any improvements or structures, and the limitations in

674

subsection (2) and paragraph (3)(h) shall be reduced by the

675

amount of any such tax abatement or the value of the land

676

granted, including any improvements or structures. A report

677

listing all sources of the local financial support shall be

678

provided to the office when such support is paid to the Economic

679

Development Trust Fund.

680

(d) The director, with assistance from the office, the

681

Department of Revenue, and the Agency for Workforce Innovation,

682

shall, by June 30 following the scheduled date for submitting the

683

tax refund claim, specify by written order the approval or

684

disapproval of the tax refund claim and, if approved, the amount

685

of the tax refund that is authorized to be paid to the qualified

686

applicant for the annual tax refund. The office may grant an

687

extension of this date upon the request of the qualified

688

applicant for the purpose of filing additional information in

689

support of the claim.

690

(e) The total amount of tax refunds approved by the

691

director under this section in any fiscal year may not exceed the

692

amount authorized under s. 288.095(3).

693

(f) Upon approval of the tax refund pursuant to paragraphs

694

695

for the amount included in the written order. In the event of any

696

appeal of the written order, the Chief Financial Officer may not

697

issue a warrant for a refund to the qualified applicant until the

698

conclusion of all appeals of the written order.

699

(g) A prorated tax refund, less a 5 percent penalty, shall

700

be approved for a qualified applicant provided all other

701

applicable requirements have been satisfied and the applicant

702

proves to the satisfaction of the director that it has achieved

703

at least 80 percent of its projected employment and that the

704

average wage paid by the qualified applicant is at least 90

705

percent of the average wage specified in the tax refund

706

agreement, but in no case less than 115 percent of the average

707

private sector wage in the area available at the time of

708

certification. The prorated tax refund shall be calculated by

709

multiplying the tax refund amount for which the qualified

710

applicant would have been eligible, if all applicable

711

requirements had been satisfied, by the percentage of the average

712

employment specified in the tax refund agreement which was

713

achieved, and by the percentage of the average wages specified in

714

the tax refund agreement which was achieved.

715

(h) This section does not create a presumption that a tax

716

refund claim will be approved and paid.

717

(6) ADMINISTRATION.--

718

(a) The office may adopt rules pursuant to chapter 120 for

719

the administration of this section.

720

(b) The office may verify information provided in any claim

721

submitted for tax credits under this section with regard to

722

employment and wage levels or the payment of the taxes with the

723

appropriate agency or authority including the Department of

724

Revenue, the Agency for Workforce Innovation, or any local

725

government or authority.

726

727

applications made under this program, the office may provide a

728

list of qualified applicants to the Department of Revenue, to the

729

Agency for Workforce Innovation, or to any local government or

730

authority. The office may request the assistance of said entities

731

with respect to monitoring jobs, wages, and the payment of the

732

taxes listed in subsection (2).

733

(d) By December 1 of each year, the office shall submit a

734

complete and detailed report to the Governor, the President of

735

the Senate, and the Speaker of the House of Representatives of

736

all tax refunds paid under this section, including analyses of

737

benefits and costs, types of projects supported, employment and

738

investment created, geographic distribution of tax refunds

739

granted, and minority business participation. The report must

740

indicate whether the moneys appropriated by the Legislature to

741

the qualified applicant tax refund program were expended in a

742

prudent, fiducially sound manner.

743

(d)(e) Funds specifically appropriated for the tax refund

744

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

745

than the payment of tax refunds authorized by this section.

746

(7) Notwithstanding paragraphs (4)(a) and (5)(c), the

747

office may approve a waiver of the local financial support

748

requirement for a business located in any of the following

749

counties in which businesses received emergency loans

750

administered by the office in response to the named hurricanes of

751

2004: Bay, Brevard, Charlotte, DeSoto, Escambia, Flagler, Glades,

752

Hardee, Hendry, Highlands, Indian River, Lake, Lee, Martin,

753

Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Polk, Putnam,

754

Santa Rosa, Seminole, St. Lucie, Volusia, and Walton. A waiver

755

may be granted only if the office determines that the local

756

financial support cannot be provided or that doing so would

757

effect a demonstrable hardship on the unit of local government

758

providing the local financial support. If the office grants a

759

waiver of the local financial support requirement, the state

760

shall pay 100 percent of the refund due to an eligible business.

761

The waiver shall apply for tax refund applications made for

762

fiscal years 2004-2005, 2005-2006, and 2006-2007.

763

(8) EXPIRATION.--An applicant may not be certified as

764

qualified under this section after June 30, 2014 June 30, 2010. A

765

tax refund agreement existing on that date shall continue in

766

effect in accordance with its terms.

767

Section 2. Paragraph (f) of subsection (2) of section

768

14.2015, Florida Statutes, is amended to read:

769

14.2015 Office of Tourism, Trade, and Economic Development;

770

creation; powers and duties.--

771

(2) The purpose of the Office of Tourism, Trade, and

772

Economic Development is to assist the Governor in working with

773

the Legislature, state agencies, business leaders, and economic

774

development professionals to formulate and implement coherent and

775

consistent policies and strategies designed to provide economic

776

opportunities for all Floridians. To accomplish such purposes,

777

the Office of Tourism, Trade, and Economic Development shall:

778

(f)1. Administer the Florida Enterprise Zone Act under ss.

779

290.001-290.016, the community contribution tax credit program

780

under ss. 220.183 and 624.5105, the tax refund program for

781

qualified target industry businesses under s. 288.106, the tax-

782

refund program for qualified defense contractors and space flight

783

business contractors under s. 288.1045, contracts for

784

transportation projects under s. 288.063, the sports franchise

785

facility program under s. 288.1162, the professional golf hall of

786

fame facility program under s. 288.1168, the expedited permitting

787

process under s. 403.973, the Rural Community Development

788

Revolving Loan Fund under s. 288.065, the Regional Rural

789

Development Grants Program under s. 288.018, the Certified

790

Capital Company Act under s. 288.99, the Florida State Rural

791

Development Council, the Rural Economic Development Initiative,

792

and other programs that are specifically assigned to the office

793

by law, by the appropriations process, or by the Governor.

794

Notwithstanding any other provisions of law, the office may

795

expend interest earned from the investment of program funds

796

deposited in the Grants and Donations Trust Fund to contract for

797

the administration of the programs, or portions of the programs,

798

enumerated in this paragraph or assigned to the office by law, by

799

the appropriations process, or by the Governor. Such expenditures

800

shall be subject to review under chapter 216.

801

2. The office may enter into contracts in connection with

802

the fulfillment of its duties concerning the Florida First

803

Business Bond Pool under chapter 159, tax incentives under

804

chapters 212 and 220, tax incentives under the Certified Capital

805

Company Act in chapter 288, foreign offices under chapter 288,

806

the Enterprise Zone program under chapter 290, the Seaport

807

Employment Training program under chapter 311, the Florida

808

Professional Sports Team License Plates under chapter 320,

809

Spaceport Florida under chapter 331, Expedited Permitting under

810

chapter 403, and in carrying out other functions that are

811

specifically assigned to the office by law, by the appropriations

812

process, or by the Governor.

813

Section 3. Paragraph (k) of subsection (8) of section

814

213.053, Florida Statutes, is amended to read:

815

213.053 Confidentiality and information sharing.--

816

(8) Notwithstanding any other provision of this section,

817

the department may provide:

818

(k)1. Payment information relative to chapters 199, 201,

819

212, 220, 221, and 624 to the Office of Tourism, Trade, and

820

Economic Development, or its employees or agents that are

821

identified in writing by the office to the department, in the

822

administration of the tax refund program for qualified defense

823

contractors and space flight business contractors authorized by

824

s. 288.1045 and the tax refund program for qualified target

825

industry businesses authorized by s. 288.106.

826

2. Information relative to tax credits taken by a business

827

under s. 220.191 and exemptions or tax refunds received by a

828

business under s. 212.08(5)(j) to the Office of Tourism, Trade,

829

and Economic Development, or its employees or agents that are

830

identified in writing by the office to the department, in the

831

administration and evaluation of the capital investment tax

832

credit program authorized in s. 220.191 and the semiconductor,

833

defense, and space tax exemption program authorized in s.

834

212.08(5)(j).

835

836

Disclosure of information under this subsection shall be pursuant

837

to a written agreement between the executive director and the

838

agency. Such agencies, governmental or nongovernmental, shall be

839

bound by the same requirements of confidentiality as the

840

Department of Revenue. Breach of confidentiality is a misdemeanor

841

of the first degree, punishable as provided by s. 775.082 or s.

842

775.083.

843

Section 4. This act shall take effect July 1, 2008.

844

845

================ T I T L E A M E N D M E N T ================

846

And the title is amended as follows:

847

Delete everything before the enacting clause

848

and insert:

849

A bill to be entitled

850

An act relating to tax refunds for qualified space flight

851

contractors; amending s. 288.1045, F.S.; including space

852

flight contractors in the qualified defense contractor tax

853

refund program; expanding the definition of "applicant"

854

and "project" to include space flight business contracts;

855

defining the terms "space flight business," "space flight

856

business contract," "new space flight business contract,"

857

and "consolidation of a space flight business contract";

858

providing that qualified defense contractors are, upon

859

approval, eligible for specified tax refunds under certain

860

circumstances; authorizing a qualified applicant to

861

receive refunds from the account for certain taxes after

862

entering into certain tax refund agreements; excluding

863

certain taxes from the list of eligible taxes on which a

864

refund may be based; expanding the requirements for an

865

application for certification as a qualified defense

866

contractor or space flight contractor; providing that an

867

applicant may not apply for certification after a proposal

868

has been submitted for a new space flight business

869

contract or after the applicant has made the decision to

870

consolidate an existing space flight business contract;

871

requiring that an applicant establish certain information

872

to qualify for review by the Office of Tourism, Trade, and

873

Economic Development; requiring that certain types of

874

applications contain certain information; requiring that

875

the office review and evaluate each application based on

876

specified criteria; requiring that the office forward its

877

written findings regarding each application meeting

878

certain requirements to its director within a specified

879

period; requiring that applications for certification

880

based on the consolidation of a space flight business

881

contract or a new space flight business contract be

882

submitted to the office in the manner prescribed by the

883

office; requiring that such contracts contain certain

884

information; providing for the claiming of a tax refund by

885

an applicant who has entered into a valid new space flight

886

business contract or commenced the consolidation of a

887

space flight business contract; prohibiting a tax refund

888

for a qualified defense contractor from being paid unless

889

local financial support has been paid to the Economic

890

Development Trust Fund for that refund; providing eligible

891

sources of such local financial support; providing for

892

certain reductions in the amount of such tax refunds and

893

applicable limitations; providing that an applicant may

894

not be certified after a specified date; deleting

895

provisions relating to the submission of an annual report

896

of the payment of certain tax refunds by the Office of

897

Tourism, Trade, and Economic Development to the Governor,

898

the President of the Senate, and the Speaker of the House

899

of Representatives; amending ss. 14.2015 and 213.053,

900

F.S., relating to duties of the Office of Tourism, Trade,

901

and Economic Development and the sharing of information by

902

the Department of Revenue; conforming provisions to

903

changes made by the act; providing an effective date.

4/10/2008 11:41:00 AM 10-07236A-08

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