Florida Senate - 2008 CS for SB 2666
By the Committee on Transportation and Economic Development Appropriations; and Senators Posey and Haridopolos
606-08354-08 20082666c1
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A bill to be entitled
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An act relating to tax refunds for qualified space flight
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contractors; amending s. 288.1045, F.S.; including space
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flight contractors in the qualified defense contractor tax
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refund program; expanding the definition of "applicant"
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and "project" to include space flight business contracts;
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defining the terms "space flight business," "space flight
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business contract," "new space flight business contract,"
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and "consolidation of a space flight business contract";
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providing that qualified defense contractors are, upon
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approval, eligible for specified tax refunds under certain
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circumstances; authorizing a qualified applicant to
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receive refunds from the account for certain taxes after
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entering into certain tax refund agreements; excluding
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certain taxes from the list of eligible taxes on which a
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refund may be based; expanding the requirements for an
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application for certification as a qualified defense
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contractor or space flight contractor; providing that an
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applicant may not apply for certification after a proposal
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has been submitted for a new space flight business
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contract or after the applicant has made the decision to
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consolidate an existing space flight business contract;
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requiring that an applicant establish certain information
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to qualify for review by the Office of Tourism, Trade, and
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Economic Development; requiring that certain types of
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applications contain certain information; requiring that
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the office review and evaluate each application based on
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specified criteria; requiring that the office forward its
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written findings regarding each application meeting
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certain requirements to its director within a specified
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period; requiring that applications for certification
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based on the consolidation of a space flight business
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contract or a new space flight business contract be
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submitted to the office in the manner prescribed by the
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office; requiring that such contracts contain certain
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information; providing for the claiming of a tax refund by
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an applicant who has entered into a valid new space flight
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business contract or commenced the consolidation of a
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space flight business contract; prohibiting a tax refund
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for a qualified defense contractor from being paid unless
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local financial support has been paid to the Economic
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Development Trust Fund for that refund; providing eligible
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sources of such local financial support; providing for
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certain reductions in the amount of such tax refunds and
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applicable limitations; providing that an applicant may
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not be certified after a specified date; deleting
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provisions relating to the submission of an annual report
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of the payment of certain tax refunds by the Office of
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Tourism, Trade, and Economic Development to the Governor,
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the President of the Senate, and the Speaker of the House
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F.S., relating to duties of the Office of Tourism, Trade,
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and Economic Development and the sharing of information by
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the Department of Revenue; conforming provisions to
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changes made by the act; providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Section 288.1045, Florida Statutes, is amended
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to read:
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288.1045 Qualified defense contractor and space flight
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business tax refund program.--
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(1) DEFINITIONS.--As used in this section:
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(a) "Consolidation of a Department of Defense contract"
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means the consolidation of one or more of an applicant's
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facilities under one or more Department of Defense contracts
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either from outside this state or from inside and outside this
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state, into one or more of the applicant's facilities inside this
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state.
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(b) "Average wage in the area" means the average of all
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wages and salaries in the state, the county, or in the standard
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metropolitan area in which the business unit is located.
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(c) "Applicant" means any business entity that holds a
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valid Department of Defense contract, space flight business
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contract, or any business entity that is a subcontractor under a
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valid Department of Defense contract, space flight business
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contract, or any business entity that holds a valid contract for
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the reuse of a defense-related facility, including all members of
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an affiliated group of corporations as defined in s.
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220.03(1)(b).
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(d) "Office" means the Office of Tourism, Trade, and
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Economic Development.
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(e) "Department of Defense contract" means a competitively
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bid Department of Defense contract or subcontract or a
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competitively bid federal agency contract or subcontract issued
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on behalf of the Department of Defense for manufacturing,
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assembling, fabricating, research, development, or design with a
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duration of 2 or more years, but excluding any contract or
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subcontract to provide goods, improvements to real or tangible
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property, or services directly to or for any particular military
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base or installation in this state. The term includes contracts
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or subcontracts for products or services for military use or
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homeland security which contracts or subcontracts are approved by
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the United States Department of Defense, the United States
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Department of State, or the United States Department of Homeland
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Security.
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(f) "New Department of Defense contract" means a Department
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of Defense contract entered into after the date application for
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certification as a qualified applicant is made and after January
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1, 1994.
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(g) "Jobs" means full-time equivalent positions, consistent
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with the use of such terms by the Agency for Workforce Innovation
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for the purpose of unemployment compensation tax, created or
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retained as a direct result of a project in this state. This
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number does not include temporary construction jobs involved with
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the construction of facilities for the project.
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(h) "Nondefense production jobs" means employment
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exclusively for activities that, directly or indirectly, are
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unrelated to the Department of Defense.
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(i) "Project" means any business undertaking in this state
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under a new Department of Defense contract, new space flight
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business contract, consolidation of a space flight business
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contract, consolidation of a Department of Defense contract, or
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conversion of defense production jobs over to nondefense
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production jobs or reuse of defense-related facilities.
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(j) "Qualified applicant" means an applicant that has been
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approved by the director to be eligible for tax refunds pursuant
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to this section.
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(k) "Director" means the director of the Office of Tourism,
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Trade, and Economic Development.
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(l) "Taxable year" means the same as in s. 220.03(1)(y).
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(m) "Fiscal year" means the fiscal year of the state.
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(n) "Business unit" means an employing unit, as defined in
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s. 443.036, that is registered with the Agency for Workforce
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Innovation for unemployment compensation purposes or means a
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subcategory or division of an employing unit that is accepted by
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the Agency for Workforce Innovation as a reporting unit.
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(o) "Local financial support" means funding from local
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sources, public or private, which is paid to the Economic
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Development Trust Fund and which is equal to 20 percent of the
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annual tax refund for a qualified applicant. Local financial
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support may include excess payments made to a utility company
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under a designated program to allow decreases in service by the
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utility company under conditions, regardless of when application
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is made. A qualified applicant may not provide, directly or
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indirectly, more than 5 percent of such funding in any fiscal
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year. The sources of such funding may not include, directly or
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indirectly, state funds appropriated from the General Revenue
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Fund or any state trust fund, excluding tax revenues shared with
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local governments pursuant to law.
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(p) "Contract for reuse of a defense-related facility"
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means a contract with a duration of 2 or more years for the use
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of a facility for manufacturing, assembling, fabricating,
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research, development, or design of tangible personal property,
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but excluding any contract to provide goods, improvements to real
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or tangible property, or services directly to or for any
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particular military base or installation in this state. Such
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facility must be located within a port, as defined in s. 313.21,
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and have been occupied by a business entity that held a valid
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Department of Defense contract or occupied by any branch of the
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Armed Forces of the United States, within 1 year of any contract
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being executed for the reuse of such facility. A contract for
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reuse of a defense-related facility may not include any contract
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for reuse of such facility for any Department of Defense contract
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for manufacturing, assembling, fabricating, research,
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development, or design.
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(q) "Local financial support exemption option" means the
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option to exercise an exemption from the local financial support
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requirement available to any applicant whose project is located
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in a county designated by the Rural Economic Development
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Initiative, if the county commissioners of the county in which
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the project will be located adopt a resolution requesting that
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the applicant's project be exempt from the local financial
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support requirement. Any applicant that exercises this option is
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not eligible for more than 80 percent of the total tax refunds
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allowed such applicant under this section.
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(r) "Consolidation of a space flight business contract"
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means the consolidation of one or more of an applicant's
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facilities under one or more space flight business contracts,
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from outside this state or from inside and outside this state,
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into one or more of the applicant's facilities inside this state.
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(s) "New space flight business contract" means a space
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flight business contract entered into after an application for
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certification as a qualified applicant is made after July 1,
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2008.
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(t) "Space flight business" means the manufacturing,
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processing, or assembly of space flight technology products,
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space flight facilities, space flight propulsion systems, or
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space vehicles, satellites, or stations of any kind possessing
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the capability for space flight, as defined by s. 212.02(23), or
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components thereof, and includes, activities supporting space
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flight, vehicle launch activities, flight operations, ground
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control or ground support, and all administrative activities
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directly related to such activities. The term does not include
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products that are designed or manufactured for general commercial
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aviation or other uses even if those products may also serve an
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incidental use in space flight applications.
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(u) "Space flight business contract" means a competitively
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bid federal agency contract, federal agency subcontract, an
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awarded commercial contract, or an awarded commercial subcontract
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for space flight business having a duration of 2 or more years.
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(2) GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.--
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(a) There shall be allowed, from the Economic Development
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Trust Fund, a refund to a qualified applicant for the amount of
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eligible taxes certified by the director which were paid by such
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qualified applicant. The total amount of refunds for all fiscal
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years for each qualified applicant shall be determined pursuant
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to subsection (3). The annual amount of a refund to a qualified
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applicant shall be determined pursuant to subsection (5).
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(b) Upon approval by the director, a qualified applicant
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may receive tax refund payments equal to $3,000 times the number
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of jobs specified in the tax refund agreement under subparagraph
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(4)(a)1. or equal to $6,000 times the number of jobs if the
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project is located in a rural county or an enterprise zone.
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Further, a qualified applicant is allowed additional tax refund
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payments equal to $1,000 times the number of jobs specified in
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the tax refund agreement under subparagraph (4)(a)1. if such jobs
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pay an annual average wage of at least 150 percent of the average
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private-sector wage in the area or equal to $2,000 times the
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number of jobs if such jobs pay an annual average wage of at
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least 200 percent of the average private-sector wage in the area.
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A qualified applicant may not be qualified for any project to
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receive more than $5,000 times the number of jobs provided in the
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tax refund agreement pursuant to subparagraph (4)(a)1. A
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qualified applicant may not receive refunds of more than 25
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percent of the total tax refunds provided in the tax refund
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agreement pursuant to subparagraph (4)(a)1. in any fiscal year,
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provided that no qualified applicant may receive more than $2.5
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million in tax refunds pursuant to this section in any fiscal
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year.
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(c) A qualified applicant may not receive more than $7.5
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million in tax refunds pursuant to this section in all fiscal
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years.
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(d) Contingent upon an annual appropriation by the
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Legislature, the director may approve not more in tax refunds
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than the amount appropriated to the Economic Development Trust
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Fund for tax refunds, for a fiscal year pursuant to subsection
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(5) and s. 288.095.
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(e) For the first 6 months of each fiscal year, the
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director shall set aside 30 percent of the amount appropriated
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for refunds pursuant to this section by the Legislature to
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provide tax refunds only to qualified applicants who employ 500
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or fewer full-time employees in this state. Any unencumbered
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funds remaining undisbursed from this set-aside at the end of the
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6-month period may be used to provide tax refunds for any
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qualified applicants pursuant to this section.
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(f) After entering into a tax refund agreement pursuant to
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subsection (4), a qualified applicant may:
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1. Receive refunds from the account for corporate income
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taxes due and paid under chapter 220 by that business beginning
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with the first taxable year of the business which begins after
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entering into the agreement.
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2. Receive refunds from the account Economic Development
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Trust Fund for the following taxes due and paid by that business
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the qualified applicant beginning with the applicant's first
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taxable year that begins after entering into the agreement:
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a.1. Taxes on sales, use, and other transactions paid
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pursuant to chapter 212.
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2. Corporate income taxes paid pursuant to chapter 220.
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b. 3. Intangible personal property taxes paid pursuant to
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chapter 199.
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c.4. Emergency excise taxes paid pursuant to chapter 221.
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d.5. Excise taxes paid on documents pursuant to chapter
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201.
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e.6. Ad valorem taxes paid, as defined in s. 220.03(1)(a)
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on June 1, 1996.
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f.7. State communications services taxes administered under
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chapter 202. This provision does not apply to the gross receipts
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tax imposed under chapter 203 and administered under chapter 202
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or the local communications services tax authorized under s.
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However, a qualified applicant may not receive a tax refund
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pursuant to this section for any amount of credit, refund, or
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exemption granted such contractor for any of such taxes. If a
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refund for such taxes is provided by the office, which taxes are
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subsequently adjusted by the application of any credit, refund,
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or exemption granted to the qualified applicant other than that
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provided in this section, the qualified applicant shall reimburse
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the Economic Development Trust Fund for the amount of such
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credit, refund, or exemption. A qualified applicant must notify
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and tender payment to the office within 20 days after receiving a
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credit, refund, or exemption, other than that provided in this
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section. The addition of communications services taxes
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administered under chapter 202 is remedial in nature and
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retroactive to October 1, 2001. The office may make supplemental
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tax refund payments to allow for tax refunds for communications
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services taxes paid by an eligible qualified defense contractor
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after October 1, 2001.
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(g) Any qualified applicant who fraudulently claims this
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refund is liable for repayment of the refund to the Economic
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Development Trust Fund plus a mandatory penalty of 200 percent of
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the tax refund which shall be deposited into the General Revenue
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Fund. Any qualified applicant who fraudulently claims this refund
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commits a felony of the third degree, punishable as provided in
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(h) Funds made available pursuant to this section may not
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be expended in connection with the relocation of a business from
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one community to another community in this state unless the
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Office of Tourism, Trade, and Economic Development determines
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that without such relocation the business will move outside this
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state or determines that the business has a compelling economic
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rationale for the relocation which creates additional jobs.
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(3) APPLICATION PROCESS; REQUIREMENTS; AGENCY
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DETERMINATION.--
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(a) To apply for certification as a qualified applicant
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pursuant to this section, an applicant must file an application
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with the office which satisfies the requirements of paragraphs
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(b) and (e), paragraphs (c) and (e), or paragraphs (d) and (e),
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or paragraphs (e) and (k). An applicant may not apply for
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certification pursuant to this section after a proposal has been
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submitted for a new Department of Defense contract, after the
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applicant has made the decision to consolidate an existing
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Department of Defense contract in this state for which such
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applicant is seeking certification, after a proposal has been
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submitted for a new space flight business contract in this state,
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after the applicant has made the decision to consolidate an
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existing space flight business contract in this state for which
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such applicant is seeking certification, or after the applicant
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has made the decision to convert defense production jobs to
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nondefense production jobs for which such applicant is seeking
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certification.
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(b) Applications for certification based on the
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consolidation of a Department of Defense contract or a new
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Department of Defense contract must be submitted to the office as
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prescribed by the office and must include, but are not limited
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to, the following information:
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1. The applicant's federal employer identification number,
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the applicant's Florida sales tax registration number, and a
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notarized signature of an officer of the applicant.
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2. The permanent location of the manufacturing, assembling,
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fabricating, research, development, or design facility in this
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state at which the project is or is to be located.
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3. The Department of Defense contract numbers of the
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contract to be consolidated, the new Department of Defense
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contract number, or the "RFP" number of a proposed Department of
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Defense contract.
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4. The date the contract was executed or is expected to be
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executed, and the date the contract is due to expire or is
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expected to expire.
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5. The commencement date for project operations under the
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contract in this state.
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6. The number of net new full-time equivalent Florida jobs
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included in the project as of December 31 of each year and the
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average wage of such jobs.
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7. The total number of full-time equivalent employees
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employed by the applicant in this state.
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8. The percentage of the applicant's gross receipts derived
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from Department of Defense contracts during the 5 taxable years
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immediately preceding the date the application is submitted.
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9. The number of full-time equivalent jobs in this state to
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be retained by the project.
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10. The estimated amount of tax refunds to be claimed for
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each fiscal year.
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10.11. A brief statement concerning the applicant's need
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for tax refunds, and the proposed uses of such refunds by the
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applicant.
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11.12. A resolution adopted by the governing board county
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commissioners of the county or municipality in which the project
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will be located, which recommends the applicant be approved as a
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qualified applicant, and which indicates that the necessary
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commitments of local financial support for the applicant exist.
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Prior to the adoption of the resolution, the county commission
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may review the proposed public or private sources of such support
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and determine whether the proposed sources of local financial
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support can be provided or, for any applicant whose project is
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located in a county designated by the Rural Economic Development
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Initiative, a resolution adopted by the county commissioners of
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such county requesting that the applicant's project be exempt
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from the local financial support requirement.
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12.13. Any additional information requested by the office.
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(c) Applications for certification based on the conversion
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of defense production jobs to nondefense production jobs must be
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submitted to the office as prescribed by the office and must
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include, but are not limited to, the following information:
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1. The applicant's federal employer identification number,
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the applicant's Florida sales tax registration number, and a
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notarized signature of an officer of the applicant.
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2. The permanent location of the manufacturing, assembling,
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fabricating, research, development, or design facility in this
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state at which the project is or is to be located.
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3. The Department of Defense contract numbers of the
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contract under which the defense production jobs will be
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converted to nondefense production jobs.
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4. The date the contract was executed, and the date the
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contract is due to expire or is expected to expire, or was
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canceled.
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5. The commencement date for the nondefense production
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operations in this state.
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6. The number of net new full-time equivalent Florida jobs
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included in the nondefense production project as of December 31
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of each year and the average wage of such jobs.
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7. The total number of full-time equivalent employees
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employed by the applicant in this state.
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8. The percentage of the applicant's gross receipts derived
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from Department of Defense contracts during the 5 taxable years
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immediately preceding the date the application is submitted.
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9. The number of full-time equivalent jobs in this state to
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be retained by the project.
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10. The estimated amount of tax refunds to be claimed for
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each fiscal year.
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10.11. A brief statement concerning the applicant's need
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for tax refunds, and the proposed uses of such refunds by the
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applicant.
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11.12. A resolution adopted by the governing board county
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commissioners of the county or municipality in which the project
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will be located, which recommends the applicant be approved as a
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qualified applicant, and which indicates that the necessary
399
commitments of local financial support for the applicant exist.
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Prior to the adoption of the resolution, the county commission
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may review the proposed public or private sources of such support
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and determine whether the proposed sources of local financial
403
support can be provided or, for any applicant whose project is
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located in a county designated by the Rural Economic Development
405
Initiative, a resolution adopted by the county commissioners of
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such county requesting that the applicant's project be exempt
407
from the local financial support requirement.
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12.13. Any additional information requested by the office.
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(d) Applications for certification based on a contract for
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reuse of a defense-related facility must be submitted to the
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office as prescribed by the office and must include, but are not
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limited to, the following information:
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1. The applicant's Florida sales tax registration number
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and a notarized signature of an officer of the applicant.
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2. The permanent location of the manufacturing, assembling,
416
fabricating, research, development, or design facility in this
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state at which the project is or is to be located.
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3. The business entity holding a valid Department of
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Defense contract or branch of the Armed Forces of the United
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States that previously occupied the facility, and the date such
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entity last occupied the facility.
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4. A copy of the contract to reuse the facility, or such
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alternative proof as may be prescribed by the office that the
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applicant is seeking to contract for the reuse of such facility.
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5. The date the contract to reuse the facility was executed
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or is expected to be executed, and the date the contract is due
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to expire or is expected to expire.
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6. The commencement date for project operations under the
429
contract in this state.
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7. The number of net new full-time equivalent Florida jobs
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included in the project as of December 31 of each year and the
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average wage of such jobs.
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8. The total number of full-time equivalent employees
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employed by the applicant in this state.
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9. The number of full-time equivalent jobs in this state to
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be retained by the project.
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10. The estimated amount of tax refunds to be claimed for
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each fiscal year.
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10.11. A brief statement concerning the applicant's need
440
for tax refunds, and the proposed uses of such refunds by the
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applicant.
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11.12. A resolution adopted by the governing board county
443
commissioners of the county or municipality in which the project
444
will be located, which recommends the applicant be approved as a
445
qualified applicant, and which indicates that the necessary
446
commitments of local financial support for the applicant exist.
447
Prior to the adoption of the resolution, the county commission
448
may review the proposed public or private sources of such support
449
and determine whether the proposed sources of local financial
450
support can be provided or, for any applicant whose project is
451
located in a county designated by the Rural Economic Development
452
Initiative, a resolution adopted by the county commissioners of
453
such county requesting that the applicant's project be exempt
454
from the local financial support requirement.
455
12.13. Any additional information requested by the office.
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(e) To qualify for review by the office, the application of
457
an applicant must, at a minimum, establish the following to the
458
satisfaction of the office:
459
1. The jobs proposed to be provided under the application,
460
pursuant to subparagraph (b)6., or subparagraph (c)6., or
461
subparagraph (k)6., must pay an estimated annual average wage
462
equaling at least 115 percent of the average wage in the area
463
where the project is to be located.
464
2. The consolidation of a Department of Defense contract
465
must result in a net increase of at least 25 percent in the
466
number of jobs at the applicant's facilities in this state or the
467
addition of at least 80 jobs at the applicant's facilities in
468
this state.
469
3. The conversion of defense production jobs to nondefense
470
production jobs must result in net increases in nondefense
471
employment at the applicant's facilities in this state.
472
4. The Department of Defense contract or the space flight
473
business contract cannot allow the business to include the costs
474
of relocation or retooling in its base as allowable costs under a
475
cost-plus, or similar, contract.
476
5. A business unit of the applicant must have derived not
477
less than 60 percent of its gross receipts in this state from
478
Department of Defense contracts or the space flight business
479
contract over the applicant's last fiscal year, and must have
480
derived not less than an average of 60 percent of its gross
481
receipts in this state from Department of Defense contracts over
482
the 5 years preceding the date an application is submitted
483
pursuant to this section. This subparagraph does not apply to any
484
application for certification based on a contract for reuse of a
485
defense-related facility.
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6. The reuse of a defense-related facility must result in
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the creation of at least 100 jobs at such facility.
488
7. A new space flight business contract or the
489
consolidation of a space flight business contract must result in
490
net increases in space flight business employment at the
491
applicant's facilities in this state.
492
(f) Each application meeting the requirements of paragraphs
493
(b) and (e), paragraphs (c) and (e), or paragraphs (d) and (e),
494
or paragraphs (e) and (k) must be submitted to the office for a
495
determination of eligibility. The office shall review and,
496
evaluate, and score each application based on, but not limited
497
to, the following criteria:
498
1. Expected contributions to the state strategic economic
499
development plan adopted by Enterprise Florida, Inc., taking into
500
account the extent to which the project contributes to the
501
state's high-technology base, and the long-term impact of the
502
project and the applicant on the state's economy.
503
2. The economic benefit of the jobs created or retained by
504
the project in this state, taking into account the cost and
505
average wage of each job created or retained, and the potential
506
risk to existing jobs.
507
3. The amount of capital investment to be made by the
508
applicant in this state.
509
4. The local commitment and support for the project and
510
applicant.
511
5. The impact of the project on the local community, taking
512
into account the unemployment rate for the county where the
513
project will be located.
514
6. The dependence of the local community on the defense
515
industry or space flight business.
516
7. The impact of any tax refunds granted pursuant to this
517
section on the viability of the project and the probability that
518
the project will occur in this state if such tax refunds are
519
granted to the applicant, taking into account the expected long-
520
term commitment of the applicant to economic growth and
521
employment in this state.
522
8. The length of the project, or the expected long-term
523
commitment to this state resulting from the project.
524
(g) The office shall forward its written findings and
525
evaluation on each application meeting the requirements of
526
paragraphs (b) and (e), paragraphs (c) and (e), or paragraphs (d)
527
and (e), or paragraphs (e) and (k) to the director within 60
528
calendar days after receipt of a complete application. The office
529
shall notify each applicant when its application is complete, and
530
when the 60-day period begins. In its written report to the
531
director, the office shall specifically address each of the
532
factors specified in paragraph (f), and shall make a specific
533
assessment with respect to the minimum requirements established
534
in paragraph (e). The office shall include in its report
535
projections of the tax refunds the applicant would be eligible to
536
receive in each fiscal year based on the creation and maintenance
537
of the net new Florida jobs specified in subparagraph (b)6.,
538
subparagraph (c)6., or subparagraph (d)7., or paragraphs (e) and
539
(k) as of December 31 of the preceding state fiscal year.
540
(h) Within 30 days after receipt of the office's findings
541
and evaluation, the director shall issue a letter of
542
certification which either approves or disapproves an
543
application. The decision must be in writing and provide the
544
justifications for either approval or disapproval. If
545
appropriate, the director shall enter into a written agreement
546
with the qualified applicant pursuant to subsection (4).
547
(i) The director may not certify any applicant as a
548
qualified applicant when the value of tax refunds to be included
549
in that letter of certification exceeds the available amount of
550
authority to certify new businesses as determined in s.
551
288.095(3). A letter of certification that approves an
552
application must specify the maximum amount of a tax refund that
553
is to be available to the contractor for each fiscal year and the
554
total amount of tax refunds for all fiscal years.
555
(j) This section does not create a presumption that an
556
applicant should receive any tax refunds under this section.
557
(k) Applications for certification based upon a new space
558
flight business contract or the consolidation of a space flight
559
business contract must be submitted to the office as prescribed
560
by the office and must include, but need not be limited to, the
561
following:
562
1. The applicant's federal employer identification number,
563
the applicant's Florida sales tax registration number, and a
564
signature of an officer of the applicant.
565
2. The permanent location of the space flight business
566
facility in this state where the project is or will be located.
567
3. The new space flight business contract number, the space
568
flight business contract numbers of the contract to be
569
consolidated, or the request-for-proposal number of a proposed
570
space flight business contract.
571
4. The date the contract was executed and the date the
572
contract is due to expire, is expected to expire, or was
573
canceled.
574
5. The commencement date for project operations under the
575
contract in this state.
576
6. The number of net new full-time equivalent Florida jobs
577
included in the project as of December 31 of each year and the
578
average wage of such jobs.
579
7. The total number of full-time equivalent employees
580
employed by the applicant in this state.
581
8. The percentage of the applicant's gross receipts derived
582
from space flight business contracts during the 5 taxable years
583
immediately preceding the date the application is submitted.
584
9. The number of full-time equivalent jobs in this state to
585
be retained by the project.
586
10. A brief statement concerning the applicant's need for
587
tax refunds and the proposed uses of such refunds by the
588
applicant.
589
11. A resolution adopted by the governing board of the
590
county or municipality in which the project will be located which
591
recommends the applicant be approved as a qualified applicant and
592
indicates that the necessary commitments of local financial
593
support for the applicant exist. Prior to the adoption of the
594
resolution, the county commission may review the proposed public
595
or private sources of such support and determine whether the
596
proposed sources of local financial support can be provided or,
597
for any applicant whose project is located in a county designated
598
by the Rural Economic Development Initiative, a resolution
599
adopted by the county commissioners of such county requesting
600
that the applicant's project be exempt from the local financial
601
support requirement.
602
12. Any additional information requested by the office.
603
(4) QUALIFIED APPLICANT DEFENSE CONTRACTOR TAX REFUND
604
AGREEMENT.--
605
(a) A qualified applicant shall enter into a written
606
agreement with the office containing, but not limited to, the
607
following:
608
1. The total number of full-time equivalent jobs in this
609
state that are or will be dedicated to the qualified applicant's
610
project, the average wage of such jobs, the definitions that will
611
apply for measuring the achievement of these terms during the
612
pendency of the agreement, and a time schedule or plan for when
613
such jobs will be in place and active in this state.
614
2. The maximum amount of a refund that the qualified
615
applicant is eligible to receive for each fiscal year, based on
616
the job creation or retention and maintenance schedule specified
617
in subparagraph 1.
618
3. An agreement with the office allowing the office to
619
review and verify the financial and personnel records of the
620
qualified applicant to ascertain whether the qualified applicant
621
is complying with the requirements of this section.
622
4. The date by which, in each fiscal year, the qualified
623
applicant may file a claim pursuant to subsection (5) to be
624
considered to receive a tax refund in the following fiscal year.
625
5. That local financial support shall be annually available
626
and will be paid to the Economic Development Trust Fund.
627
(b) Compliance with the terms and conditions of the
628
agreement is a condition precedent for receipt of tax refunds
629
each year. The failure to comply with the terms and conditions of
630
the agreement shall result in the loss of eligibility for receipt
631
of all tax refunds previously authorized pursuant to this
632
section, and the revocation of the certification as a qualified
633
applicant by the director, unless the qualified applicant is
634
eligible to receive and elects to accept a prorated refund under
635
paragraph (5)(g) or the office grants the qualified applicant an
636
economic-stimulus exemption.
637
1. A qualified applicant may submit, in writing, a request
638
to the office for an economic-stimulus exemption. The request
639
must provide quantitative evidence demonstrating how negative
640
economic conditions in the qualified applicant's industry, the
641
effects of the impact of a named hurricane or tropical storm, or
642
specific acts of terrorism affecting the qualified applicant have
643
prevented the qualified applicant from complying with the terms
644
and conditions of its tax refund agreement.
645
2. Upon receipt of a request under subparagraph 1., the
646
director shall have 45 days to notify the requesting qualified
647
applicant, in writing, if its exemption has been granted or
648
denied. In determining if an exemption should be granted, the
649
director shall consider the extent to which negative economic
650
conditions in the requesting qualified applicant's industry, the
651
effects of the impact of a named hurricane or tropical storm, or
652
specific acts of terrorism affecting the qualified applicant have
653
prevented the qualified applicant from complying with the terms
654
and conditions of its tax refund agreement.
655
3. As a condition for receiving a prorated refund under
656
paragraph (5)(g) or an economic-stimulus exemption under this
657
paragraph, a qualified applicant must agree to renegotiate its
658
tax refund agreement with the office to, at a minimum, ensure
659
that the terms of the agreement comply with current law and
660
office procedures governing application for and award of tax
661
refunds. Upon approving the award of a prorated refund or
662
granting an economic-stimulus exemption, the office shall
663
renegotiate the tax refund agreement with the qualified applicant
664
as required by this subparagraph. When amending the agreement of
665
a qualified applicant receiving an economic-stimulus exemption,
666
the office may extend the duration of the agreement for a period
667
not to exceed 2 years.
668
4. A qualified applicant may submit a request for an
669
economic-stimulus exemption to the office in lieu of any tax
670
refund claim scheduled to be submitted after January 1, 2005, but
671
before July 1, 2006.
672
5. A qualified applicant that receives an economic-stimulus
673
exemption may not receive a tax refund for the period covered by
674
the exemption.
675
(c) The agreement shall be signed by the director and the
676
authorized officer of the qualified applicant.
677
(d) The agreement must contain the following legend,
678
clearly printed on its face in bold type of not less than 10
679
points:
680
681
"This agreement is neither a general obligation of the State of
682
Florida, nor is it backed by the full faith and credit of the
683
State of Florida. Payment of tax refunds are conditioned on and
684
subject to specific annual appropriations by the Florida
685
Legislature of funds sufficient to pay amounts authorized in s.
686
288.1045, Florida Statutes."
687
(5) ANNUAL CLAIM FOR REFUND FROM A QUALIFIED DEFENSE
688
CONTRACTOR.--
689
(a) To be eligible to claim any scheduled tax refund,
690
qualified applicants who have entered into a written agreement
691
with the office pursuant to subsection (4) and who have entered
692
into a valid new Department of Defense contract, entered into a
693
valid new space flight business contract, commenced the
694
consolidation of a space flight business contract, commenced the
695
consolidation of a Department of Defense contract, commenced the
696
conversion of defense production jobs to nondefense production
697
jobs, or entered into a valid contract for reuse of a defense-
698
related facility must apply by January 31 of each fiscal year to
699
the office for tax refunds scheduled to be paid from the
700
appropriation for the fiscal year that begins on July 1 following
701
the January 31 claims-submission date. The office may, upon
702
written request, grant a 30-day extension of the filing date. The
703
application must include a notarized signature of an officer of
704
the applicant.
705
(b) The claim for refund by the qualified applicant must
706
include a copy of all receipts pertaining to the payment of taxes
707
for which a refund is sought, and data related to achieving each
708
performance item contained in the tax refund agreement pursuant
709
to subsection (4). The amount requested as a tax refund may not
710
exceed the amount for the relevant fiscal year in the written
711
agreement entered pursuant to subsection (4).
712
(c) A tax refund may not be approved for any qualified
713
applicant unless local financial support has been paid to the
714
Economic Development Trust Fund for that refund. If the local
715
financial support is less than 20 percent of the approved tax
716
refund, the tax refund shall be reduced. The tax refund paid may
717
not exceed 5 times the local financial support received. Funding
718
from local sources includes tax abatement under s. 196.1995 or
719
the appraised market value of municipal or county land, including
720
any improvements or structures, conveyed or provided at a
721
discount through a sale or lease to that provided to a qualified
722
applicant. The amount of any tax refund for an applicant approved
723
under this section shall be reduced by the amount of any such tax
724
abatement granted or the value of the land granted, including the
725
value of any improvements or structures, and the limitations in
726
subsection (2) and paragraph (3)(h) shall be reduced by the
727
amount of any such tax abatement or the value of the land
728
granted, including any improvements or structures. A report
729
listing all sources of the local financial support shall be
730
provided to the office when such support is paid to the Economic
731
Development Trust Fund.
732
(d) The director, with assistance from the office, the
733
Department of Revenue, and the Agency for Workforce Innovation,
734
shall, by June 30 following the scheduled date for submitting the
735
tax refund claim, specify by written order the approval or
736
disapproval of the tax refund claim and, if approved, the amount
737
of the tax refund that is authorized to be paid to the qualified
738
applicant for the annual tax refund. The office may grant an
739
extension of this date upon the request of the qualified
740
applicant for the purpose of filing additional information in
741
support of the claim.
742
(e) The total amount of tax refunds approved by the
743
director under this section in any fiscal year may not exceed the
744
amount authorized under s. 288.095(3).
745
(f) Upon approval of the tax refund pursuant to paragraphs
746
(c) and (d), the Chief Financial Officer shall issue a warrant
747
for the amount included in the written order. In the event of any
748
appeal of the written order, the Chief Financial Officer may not
749
issue a warrant for a refund to the qualified applicant until the
750
conclusion of all appeals of the written order.
751
(g) A prorated tax refund, less a 5 percent penalty, shall
752
be approved for a qualified applicant provided all other
753
applicable requirements have been satisfied and the applicant
754
proves to the satisfaction of the director that it has achieved
755
at least 80 percent of its projected employment and that the
756
average wage paid by the qualified applicant is at least 90
757
percent of the average wage specified in the tax refund
758
agreement, but in no case less than 115 percent of the average
759
private sector wage in the area available at the time of
760
certification. The prorated tax refund shall be calculated by
761
multiplying the tax refund amount for which the qualified
762
applicant would have been eligible, if all applicable
763
requirements had been satisfied, by the percentage of the average
764
employment specified in the tax refund agreement which was
765
achieved, and by the percentage of the average wages specified in
766
the tax refund agreement which was achieved.
767
(h) This section does not create a presumption that a tax
768
refund claim will be approved and paid.
769
(6) ADMINISTRATION.--
770
(a) The office may adopt rules pursuant to chapter 120 for
771
the administration of this section.
772
(b) The office may verify information provided in any claim
773
submitted for tax credits under this section with regard to
774
employment and wage levels or the payment of the taxes with the
775
appropriate agency or authority including the Department of
776
Revenue, the Agency for Workforce Innovation, or any local
777
government or authority.
778
(c) To facilitate the process of monitoring and auditing
779
applications made under this program, the office may provide a
780
list of qualified applicants to the Department of Revenue, to the
781
Agency for Workforce Innovation, or to any local government or
782
authority. The office may request the assistance of said entities
783
with respect to monitoring jobs, wages, and the payment of the
784
taxes listed in subsection (2).
785
(d) By December 1 of each year, the office shall submit a
786
complete and detailed report to the Governor, the President of
787
the Senate, and the Speaker of the House of Representatives of
788
all tax refunds paid under this section, including analyses of
789
benefits and costs, types of projects supported, employment and
790
investment created, geographic distribution of tax refunds
791
granted, and minority business participation. The report must
792
indicate whether the moneys appropriated by the Legislature to
793
the qualified applicant tax refund program were expended in a
794
prudent, fiducially sound manner.
795
(d)(e) Funds specifically appropriated for the tax refund
796
program under this section may not be used for any purpose other
797
than the payment of tax refunds authorized by this section.
798
(7) Notwithstanding paragraphs (4)(a) and (5)(c), the
799
office may approve a waiver of the local financial support
800
requirement for a business located in any of the following
801
counties in which businesses received emergency loans
802
administered by the office in response to the named hurricanes of
803
2004: Bay, Brevard, Charlotte, DeSoto, Escambia, Flagler, Glades,
804
Hardee, Hendry, Highlands, Indian River, Lake, Lee, Martin,
805
Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Polk, Putnam,
806
Santa Rosa, Seminole, St. Lucie, Volusia, and Walton. A waiver
807
may be granted only if the office determines that the local
808
financial support cannot be provided or that doing so would
809
effect a demonstrable hardship on the unit of local government
810
providing the local financial support. If the office grants a
811
waiver of the local financial support requirement, the state
812
shall pay 100 percent of the refund due to an eligible business.
813
The waiver shall apply for tax refund applications made for
814
fiscal years 2004-2005, 2005-2006, and 2006-2007.
815
(8) EXPIRATION.--An applicant may not be certified as
816
qualified under this section after June 30, 2014 June 30, 2010. A
817
tax refund agreement existing on that date shall continue in
818
effect in accordance with its terms.
819
Section 2. Paragraph (f) of subsection (2) of section
820
14.2015, Florida Statutes, is amended to read:
821
14.2015 Office of Tourism, Trade, and Economic Development;
822
creation; powers and duties.--
823
(2) The purpose of the Office of Tourism, Trade, and
824
Economic Development is to assist the Governor in working with
825
the Legislature, state agencies, business leaders, and economic
826
development professionals to formulate and implement coherent and
827
consistent policies and strategies designed to provide economic
828
opportunities for all Floridians. To accomplish such purposes,
829
the Office of Tourism, Trade, and Economic Development shall:
830
(f)1. Administer the Florida Enterprise Zone Act under ss.
833
qualified target industry businesses under s. 288.106, the tax-
834
refund program for qualified defense contractors and space flight
835
business contractors under s. 288.1045, contracts for
836
transportation projects under s. 288.063, the sports franchise
837
facility program under s. 288.1162, the professional golf hall of
838
fame facility program under s. 288.1168, the expedited permitting
839
process under s. 403.973, the Rural Community Development
840
Revolving Loan Fund under s. 288.065, the Regional Rural
841
Development Grants Program under s. 288.018, the Certified
842
Capital Company Act under s. 288.99, the Florida State Rural
843
Development Council, the Rural Economic Development Initiative,
844
and other programs that are specifically assigned to the office
845
by law, by the appropriations process, or by the Governor.
846
Notwithstanding any other provisions of law, the office may
847
expend interest earned from the investment of program funds
848
deposited in the Grants and Donations Trust Fund to contract for
849
the administration of the programs, or portions of the programs,
850
enumerated in this paragraph or assigned to the office by law, by
851
the appropriations process, or by the Governor. Such expenditures
852
shall be subject to review under chapter 216.
853
2. The office may enter into contracts in connection with
854
the fulfillment of its duties concerning the Florida First
855
Business Bond Pool under chapter 159, tax incentives under
856
chapters 212 and 220, tax incentives under the Certified Capital
857
Company Act in chapter 288, foreign offices under chapter 288,
858
the Enterprise Zone program under chapter 290, the Seaport
859
Employment Training program under chapter 311, the Florida
860
Professional Sports Team License Plates under chapter 320,
861
Spaceport Florida under chapter 331, Expedited Permitting under
862
chapter 403, and in carrying out other functions that are
863
specifically assigned to the office by law, by the appropriations
864
process, or by the Governor.
865
Section 3. Paragraph (k) of subsection (8) of section
866
213.053, Florida Statutes, is amended to read:
867
213.053 Confidentiality and information sharing.--
868
(8) Notwithstanding any other provision of this section,
869
the department may provide:
870
(k)1. Payment information relative to chapters 199, 201,
871
212, 220, 221, and 624 to the Office of Tourism, Trade, and
872
Economic Development, or its employees or agents that are
873
identified in writing by the office to the department, in the
874
administration of the tax refund program for qualified defense
875
contractors and space flight business contractors authorized by
876
s. 288.1045 and the tax refund program for qualified target
877
industry businesses authorized by s. 288.106.
878
2. Information relative to tax credits taken by a business
879
under s. 220.191 and exemptions or tax refunds received by a
880
business under s. 212.08(5)(j) to the Office of Tourism, Trade,
881
and Economic Development, or its employees or agents that are
882
identified in writing by the office to the department, in the
883
administration and evaluation of the capital investment tax
884
credit program authorized in s. 220.191 and the semiconductor,
885
defense, and space tax exemption program authorized in s.
886
212.08(5)(j).
887
888
Disclosure of information under this subsection shall be pursuant
889
to a written agreement between the executive director and the
890
agency. Such agencies, governmental or nongovernmental, shall be
891
bound by the same requirements of confidentiality as the
892
Department of Revenue. Breach of confidentiality is a misdemeanor
893
of the first degree, punishable as provided by s. 775.082 or s.
894
895
Section 4. This act shall take effect July 1, 2008.
CODING: Words stricken are deletions; words underlined are additions.