CS/HB 7109

1	A bill to be entitled
2	An act relating to the tax refund program for qualified
3	target industry businesses; amending s. 288.106, F.S.;
4	providing legislative findings and declarations; revising
5	and providing definitions; establishing a schedule for the
6	Office of Tourism, Trade, and Economic Development to
7	review and revise the list of target industries and submit
8	a report to the Governor and Legislature; revising the
9	criteria for evaluating applications for the program;
10	requiring consideration of the state's return on
11	investment in evaluating applications for participation in
12	the program; requiring the Office of Economic and
13	Demographic Research to submit reports to the Legislature
14	evaluating the calculation of the state's return on
15	investment for the program; requiring that additional
16	provisions be included in tax refund agreements;
17	redesignating the economic-stimulus exemption as the
18	"economic recovery extension"; revising the date by which
19	qualified target industry businesses may request economic
20	recovery extensions; authorizing waiver of a requirement
21	that qualified target industry businesses annually provide
22	proof of taxes paid under certain conditions; requiring
23	the Office of Tourism, Trade, and Economic Development to
24	submit reports to the Governor and Legislature concerning
25	the failure of qualified target industry businesses to
26	complete their tax refund agreements; deleting obsolete
27	provisions; revising the date by which a target industry
28	business may be certified as qualified for the program;
29	conforming cross-references; amending ss. 288.1089 and
30	290.00677, F.S.; conforming provisions to changes made by
31	the act; amending ss. 159.803, 220.191, and 288.107, F.S.;
32	conforming cross-references; providing an effective date.
33
34	Be It Enacted by the Legislature of the State of Florida:
35
36	Section 1.  Section 288.106, Florida Statutes, is amended
37	to read:
38	288.106  Tax refund program for qualified target industry
39	businesses.-
40	(1)  LEGISLATIVE FINDINGS AND DECLARATIONS.-The Legislature
41	finds that retaining and expanding existing businesses in the
42	state, encouraging the creation of new businesses in the state,
43	attracting new businesses from outside the state, and generally
44	providing conditions favorable for the growth of target
45	industries creates high-quality, high-wage employment
46	opportunities for residents of the state and strengthens the
47	state's economic foundation. The Legislature also finds that
48	incentives narrowly focused in application and scope tend to be
49	more effective in achieving the state's economic development
50	goals. The Legislature further finds that higher-wage jobs
51	reduce the state's share of hidden costs, such as public
52	assistance and subsidized health care associated with low-wage
53	jobs. Therefore, the Legislature declares that it is the policy
54	of the state to encourage the growth of higher-wage jobs and a
55	diverse economic base by providing state tax refunds to
56	qualified target industry businesses that originate or expand in
57	the state or that relocate to the state.
58	(2)(1)  DEFINITIONS.-As used in this section:
59	(a)  "Account" means the Economic Development Incentives
60	Account within the Economic Development Trust Fund established
61	under s. 288.095.
62	(b)(u)  "Authorized local economic development agency"
63	means a any public or private entity, including an entity those
64	defined in s. 288.075, authorized by a county or municipality to
65	promote the general business or industrial interests of that
66	county or municipality.
67	(c)(b)  "Average private sector wage in the area" means the
68	statewide private sector average wage or the average of all
69	private sector wages and salaries in the county or in the
70	standard metropolitan area in which the business is located.
71	(d)(c)  "Business" means an employing unit, as defined in
72	s. 443.036, that which is registered for unemployment
73	compensation purposes with the state agency providing
74	unemployment tax collection services under contract with the
75	Agency for Workforce Innovation through an interagency agreement
76	pursuant to s. 443.1316, or a subcategory or division of an
77	employing unit that which is accepted by the state agency
78	providing unemployment tax collection services as a reporting
79	unit.
80	(e)(d)  "Corporate headquarters business" means an
81	international, national, or regional headquarters office of a
82	multinational or multistate business enterprise or national
83	trade association, whether separate from or connected with other
84	facilities used by such business.
85	(f)(n)  "Director" means the Director of the Office of
86	Tourism, Trade, and Economic Development.
87	(g)(f)  "Enterprise zone" means an area designated as an
88	enterprise zone pursuant to s. 290.0065.
89	(h)(g)  "Expansion of an existing business" means the
90	expansion of an existing Florida business by or through
91	additions to real and personal property, resulting in a net
92	increase in employment of not less than 10 percent at such
93	business.
94	(i)(h)  "Fiscal year" means the fiscal year of the state.
95	(j)(i)  "Jobs" means full-time equivalent positions,
96	including, but not limited to, positions obtained from a
97	temporary employment agency or employee leasing company or
98	through a union agreement or coemployment under a professional
99	employer organization agreement, that result as that term is
100	consistent with terms used by the Agency for Workforce
101	Innovation and the United States Department of Labor for
102	purposes of unemployment compensation tax administration and
103	employment estimation, resulting directly from a project in this
104	state. The term does not include temporary construction jobs
105	involved with the construction of facilities for the project or
106	any jobs previously included in any application for tax refunds
107	under s. 288.1045 or this section.
108	(k)(j)  "Local financial support" means funding from local
109	sources, public or private, that which is paid to the Economic
110	Development Trust Fund and that which is equal to 20 percent of
111	the annual tax refund for a qualified target industry business.
112	A qualified target industry business may not provide, directly
113	or indirectly, more than 5 percent of such funding in any fiscal
114	year. The sources of such funding may not include, directly or
115	indirectly, state funds appropriated from the General Revenue
116	Fund or any state trust fund, excluding tax revenues shared with
117	local governments pursuant to law.
118	(l)(k)  "Local financial support exemption option" means
119	the option to exercise an exemption from the local financial
120	support requirement available to any applicant whose project is
121	located in a brownfield area, a rural city, or a rural community
122	county with a population of 75,000 or fewer or a county with a
123	population of 125,000 or fewer which is contiguous to a county
124	with a population of 75,000 or fewer. Any applicant that
125	exercises this option is shall not be eligible for more than 80
126	percent of the total tax refunds allowed such applicant under
127	this section.
128	(m)(l)  "New business" means a business that applies for a
129	tax refund under this section before beginning operations which
130	heretofore did not exist in this state, first beginning
131	operations on a site located in this state and that is a legal
132	entity clearly separate from any other commercial or industrial
133	operations owned by the same business.
134	(n)(e)  "Office" means the Office of Tourism, Trade, and
135	Economic Development.
136	(o)(m)  "Project" means the creation of a new business or
137	expansion of an existing business.
138	(p)(q)  "Qualified target industry business" means a target
139	industry business that has been approved by the office director
140	to be eligible for tax refunds under pursuant to this section.
141	(q)  "Return on investment" means the gain in state
142	revenues as a percentage of the state's investment. The state's
143	investment includes state grants, tax exemptions, tax refunds,
144	tax credits, and other state incentives.
145	(r)  "Rural county" means a county with a population of
146	75,000 or fewer or a county with a population of 100,000 or
147	fewer which is contiguous to a county with a population of
148	75,000 or fewer.
149	(r)(s)  "Rural city" means a city having with a population
150	of 10,000 or fewer less, or a city having with a population of
151	greater than 10,000 but fewer less than 20,000 that which has
152	been determined by the office of Tourism, Trade, and Economic
153	Development to have economic characteristics such as, but not
154	limited to, a significant percentage of residents on public
155	assistance, a significant percentage of residents with income
156	below the poverty level, or a significant percentage of the
157	city's employment base in agriculture-related industries.
158	(s)(t)  "Rural community" means:
159	1.  A county having with a population of 75,000 or fewer.
160	2.  A county having with a population of 125,000 or fewer
161	that which is contiguous to a county having with a population of
162	75,000 or fewer.
163	3.  A municipality within a county described in
164	subparagraph 1. or subparagraph 2.
165
166	For purposes of this paragraph, population shall be determined
167	in accordance with the most recent official estimate pursuant to
168	s. 186.901.
169	(t)(o)  "Target industry business" means a corporate
170	headquarters business or any business that is engaged in one of
171	the target industries identified pursuant to the following
172	criteria developed by the office in consultation with Enterprise
173	Florida, Inc.:
174	1.  Future growth.-Industry forecasts should indicate
175	strong expectation for future growth in both employment and
176	output, according to the most recent available data. Special
177	consideration should be given to businesses that export goods
178	Florida's growing access to, or provide services in,
179	international markets and businesses that replace domestic and
180	international or to replacing imports of goods or services.
181	2.  Stability.-The industry should not be subject to
182	periodic layoffs, whether due to seasonality or sensitivity to
183	volatile economic variables such as weather. The industry should
184	also be relatively resistant to recession, so that the demand
185	for products of this industry is not typically necessarily
186	subject to decline during an economic downturn.
187	3.  High wage.-The industry should pay relatively high
188	wages compared to statewide or area averages.
189	4.  Market and resource independent.-The location of
190	industry businesses should not be dependent on Florida markets
191	or resources as indicated by industry analysis, except for
192	businesses in the renewable energy industry. Special
193	consideration should be given to the development of strong
194	industrial clusters which include defense and homeland security
195	businesses.
196	5.  Industrial base diversification and strengthening.-The
197	industry should contribute toward expanding or diversifying the
198	state's or area's economic base, as indicated by analysis of
199	employment and output shares compared to national and regional
200	trends. Special consideration should be given to industries that
201	strengthen regional economies by adding value to basic products
202	or building regional industrial clusters as indicated by
203	industry analysis. Special consideration should also be given to
204	the development of strong industrial clusters that include
205	defense and homeland security businesses.
206	6.  Economic benefits.-The industry is expected to should
207	have strong positive impacts on or benefits to the state or and
208	regional economies.
209
210	The term does office, in consultation with Enterprise Florida,
211	Inc., shall develop a list of such target industries annually
212	and submit such list as part of the final agency legislative
213	budget request submitted pursuant to s. 216.023(1). A target
214	industry business may not include any business industry engaged
215	in retail industry activities; any electrical utility company;
216	any phosphate or other solid minerals severance, mining, or
217	processing operation; any oil or gas exploration or production
218	operation; or any business firm subject to regulation by the
219	Division of Hotels and Restaurants of the Department of Business
220	and Professional Regulation. By January 1 of every 3rd year,
221	beginning January 1, 2011, the office, in consultation with
222	Enterprise Florida, Inc., economic development organizations,
223	the State University System, local governments, employee and
224	employer organizations, market analysts, and economists, shall
225	review and, as appropriate, revise the list of such target
226	industries and submit the list to the Governor, the President of
227	the Senate, and the Speaker of the House of Representatives.
228	(u)(p)  "Taxable year" means taxable year as defined in s.
229	220.03(1)(y).
230	(3)(2)  TAX REFUND; ELIGIBLE AMOUNTS.-
231	(a)  There shall be allowed, from the account, a refund to
232	a qualified target industry business for the amount of eligible
233	taxes certified by the office that director which were paid by
234	the such business. The total amount of refunds for all fiscal
235	years for each qualified target industry business must be
236	determined pursuant to subsection (4) (3). The annual amount of
237	a refund to a qualified target industry business must be
238	determined pursuant to subsection (6) (5).
239	(b)1.  Upon approval by the office director, a qualified
240	target industry business shall be allowed tax refund payments
241	equal to $3,000 multiplied by times the number of jobs specified
242	in the tax refund agreement under subparagraph (5)(4)(a)1., or
243	equal to $6,000 multiplied by times the number of jobs if the
244	project is located in a rural community county or an enterprise
245	zone.
246	2.  Further, A qualified target industry business shall be
247	allowed additional tax refund payments equal to $1,000
248	multiplied by times the number of jobs specified in the tax
249	refund agreement under subparagraph (5)(4)(a)1., if such jobs
250	pay an annual average wage of at least 150 percent of the
251	average private sector wage in the area, or equal to $2,000
252	multiplied by times the number of jobs if such jobs pay an
253	annual average wage of at least 200 percent of the average
254	private sector wage in the area.
255	(c)  A qualified target industry business may not receive
256	refund payments of more than 25 percent of the total tax refunds
257	specified in the tax refund agreement under subparagraph
258	(5)(4)(a)1. in any fiscal year. Further, a qualified target
259	industry business may not receive more than $1.5 million in
260	refunds under this section in any single fiscal year, or more
261	than $2.5 million in any single fiscal year if the project is
262	located in an enterprise zone. A qualified target industry
263	business may not receive more than $5 million in refund payments
264	under this section in all fiscal years, or more than $7.5
265	million if the project is located in an enterprise zone. Funds
266	made available pursuant to this section may not be expended in
267	connection with the relocation of a business from one community
268	to another community in this state unless the Office of Tourism,
269	Trade, and Economic Development determines that without such
270	relocation the business will move outside this state or
271	determines that the business has a compelling economic rationale
272	for the relocation and that the relocation will create
273	additional jobs.
274	(d)(c)  After entering into a tax refund agreement under
275	subsection (5) (4), a qualified target industry business may:
276	1.  Receive refunds from the account for the following
277	taxes due and paid by that business beginning with the first
278	taxable year of the business that which begins after entering
279	into the agreement:
280	a.  Corporate income taxes under chapter 220.
281	b.  Insurance premium tax under s. 624.509.
282	2.  Receive refunds from the account for the following
283	taxes due and paid by that business after entering into the
284	agreement:
285	a.  Taxes on sales, use, and other transactions under
286	chapter 212.
287	b.  Intangible personal property taxes under chapter 199.
288	c.  Emergency excise taxes under chapter 221.
289	d.  Excise taxes on documents under chapter 201.
290	e.  Ad valorem taxes paid, as defined in s. 220.03(1).
291	f.  State communications services taxes administered under
292	chapter 202. This provision does not apply to the gross receipts
293	tax imposed under chapter 203 and administered under chapter 202
294	or the local communications services tax authorized under s.
295	202.19.
296
297	The addition of state communications services taxes administered
298	under chapter 202 is remedial in nature and retroactive to
299	October 1, 2001. The office may make supplemental tax refund
300	payments to allow for tax refunds for communications services
301	taxes paid by an eligible qualified target industry business
302	after October 1, 2001.
303	(e)(d)  However, a qualified target industry business may
304	not receive a refund under this section for any amount of
305	credit, refund, or exemption previously granted to that business
306	for any of the such taxes listed in paragraph (d). If a refund
307	for such taxes is provided by the office, which taxes are
308	subsequently adjusted by the application of any credit, refund,
309	or exemption granted to the qualified target industry business
310	other than as provided in this section, the business shall
311	reimburse the account for the amount of that credit, refund, or
312	exemption. A qualified target industry business shall notify and
313	tender payment to the office within 20 days after receiving any
314	credit, refund, or exemption other than one provided in this
315	section.
316	(f)  Refunds made available under this section may not be
317	expended in connection with the relocation of a business from
318	one community to another community in the state unless the
319	office determines that, without such relocation, the business
320	will move outside the state or determines that the business has
321	a compelling economic rationale for relocation and that the
322	relocation will create additional jobs.
323	(g)(e)  A qualified target industry business that
324	fraudulently claims a refund under this section:
325	1.  Is liable for repayment of the amount of the refund to
326	the account, plus a mandatory penalty in the amount of 200
327	percent of the tax refund which shall be deposited into the
328	General Revenue Fund.
329	2.  Commits Is guilty of a felony of the third degree,
330	punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
331	(4)(3)  APPLICATION AND APPROVAL PROCESS.-
332	(a)  To apply for certification as a qualified target
333	industry business under this section, the business must file an
334	application with the office before the business decides has made
335	the decision to locate a new business in this state or before
336	the business decides had made the decision to expand its an
337	existing operations business in this state. The application must
338	shall include, but need is not be limited to, the following
339	information:
340	1.  The applicant's federal employer identification number
341	and, if applicable, the applicant's state sales tax registration
342	number.
343	2.  The proposed permanent location of the applicant's
344	facility in this state at which the project is or is to be
345	located.
346	3.  A description of the type of business activity or
347	product covered by the project, including a minimum of a five-
348	digit NAICS code for all activities included in the project. As
349	used in this paragraph, "NAICS" means those classifications
350	contained in the North American Industry Classification System,
351	as published in 2007 by the Office of Management and Budget,
352	Executive Office of the President, and updated periodically.
353	4.  The proposed number of net new full-time equivalent
354	Florida jobs at the qualified target industry business as of
355	December 31 of each year included in the project and the average
356	wage of those jobs. If more than one type of business activity
357	or product is included in the project, the number of jobs and
358	average wage for those jobs must be separately stated for each
359	type of business activity or product.
360	5.  The total number of full-time equivalent employees
361	employed by the applicant in this state, if applicable.
362	6.  The anticipated commencement date of the project.
363	7.  A brief statement explaining concerning the role that
364	the estimated tax refunds to be requested will play in the
365	decision of the applicant to locate or expand in this state.
366	8.  An estimate of the proportion of the sales resulting
367	from the project that will be made outside this state.
368	9.  A resolution adopted by the governing board of the
369	county or municipality in which the project will be located,
370	which resolution recommends that the project certain types of
371	businesses be approved as a qualified target industry business
372	and specifies states that the commitments of local financial
373	support necessary for the target industry business exist. Before
374	In advance of the passage of such resolution, the office may
375	also accept an official letter from an authorized local economic
376	development agency that endorses the proposed target industry
377	project and pledges that sources of local financial support for
378	such project exist. For the purposes of making pledges of local
379	financial support under this subparagraph subsection, the
380	authorized local economic development agency shall be officially
381	designated by the passage of a one-time resolution by the local
382	governing board authority.
383	10.  Any additional information requested by the office.
384	(b)  To qualify for review by the office, the application
385	of a target industry business must, at a minimum, establish the
386	following to the satisfaction of the office:
387	1.a.  The jobs proposed to be created provided under the
388	application, pursuant to subparagraph (a)4., must pay an
389	estimated annual average wage equaling at least 115 percent of
390	the average private sector wage in the area where the business
391	is to be located or the statewide private sector average wage.
392	In determining the average annual wage, the office shall include
393	only new proposed jobs, and wages for existing jobs shall be
394	excluded from this calculation.
395	b.  The office may waive the average wage requirement at
396	the request of the local governing body recommending the project
397	and Enterprise Florida, Inc. The office may waive the wage
398	requirement may only be waived for a project located in a
399	brownfield area designated under s. 376.80 or in a rural city,
400	rural community, or county or in an enterprise zone and only if
401	when the merits of the individual project or the specific
402	circumstances in the community in relationship to the project
403	warrant such action. If the local governing body and Enterprise
404	Florida, Inc., make such a recommendation, it must be
405	transmitted in writing, and the specific justification for the
406	waiver recommendation must be explained. If the office director
407	elects to waive the wage requirement, the waiver must be stated
408	in writing, and the reasons for granting the waiver must be
409	explained.
410	2.  The target industry business's project must result in
411	the creation of at least 10 jobs at the such project and, in the
412	case of if an expansion of an existing business, must result in
413	a net increase in employment of at least 10 percent at the
414	business. Notwithstanding the definition of the term "expansion
415	of an existing business" in paragraph (1)(g), At the request of
416	the local governing body recommending the project and Enterprise
417	Florida, Inc., the office may waive this requirement for a
418	business define an "expansion of an existing business" in a
419	rural community or an enterprise zone as the expansion of a
420	business resulting in a net increase in employment of less than
421	10 percent at such business if the merits of the individual
422	project or the specific circumstances in the community in
423	relationship to the project warrant such action. If the local
424	governing body and Enterprise Florida, Inc., make such a
425	request, the request must be transmitted in writing, and the
426	specific justification for the request must be explained. If the
427	office director elects to grant the request, the grant must be
428	stated in writing, and the reason for granting the request must
429	be explained.
430	3.  The business activity or product for the applicant's
431	project must be is within an industry or industries that have
432	been identified by the office as a target industry business to
433	be high-value-added industries that contributes contribute to
434	the area and to the economic growth of the state and the area in
435	which the business is located, that produces produce a higher
436	standard of living for residents of this state in the new global
437	economy, or that can be shown to make an equivalent contribution
438	to the area's area and state's economic progress. The director
439	must approve requests to waive the wage requirement for
440	brownfield areas designated under s. 376.80 unless it is
441	demonstrated that such action is not in the public interest.
442	(c)  Each application meeting the requirements of paragraph
443	(b) must be submitted to the office for determination of
444	eligibility. The office shall review and evaluate each
445	application based on, but not limited to, the following
446	criteria:
447	1.  Expected contributions to the state's economy,
448	consistent with the state strategic economic development plan
449	adopted by Enterprise Florida, Inc., taking into account the
450	long-term effects of the project and of the applicant on the
451	state economy.
452	2.  The return on investment of the proposed award of tax
453	refunds under this section and the return on investment for
454	state incentives proposed for the project. The Office of
455	Economic and Demographic Research shall review and evaluate the
456	methodology and model used to calculate the return on investment
457	and report its findings by September 1 of every 3rd year,
458	beginning September 1, 2010, to the President of the Senate and
459	the Speaker of the House of Representatives economic benefit of
460	the jobs created by the project in this state, taking into
461	account the cost and average wage of each job created.
462	3.  The amount of capital investment to be made by the
463	applicant in this state.
464	4.  The local financial commitment and support for the
465	project.
466	5.  The effect of the project on the local community,
467	taking into account the unemployment rate in for the county
468	where the project will be located.
469	6.  The effect of the award any tax refunds granted
470	pursuant to this section on the viability of the project and the
471	probability that the project would will be undertaken in this
472	state if such tax refunds are granted to the applicant, taking
473	into account the expected long-term commitment of the applicant
474	to economic growth and employment in this state.
475	7.  The expected long-term commitment of the applicant to
476	economic growth and employment in to this state resulting from
477	the project.
478	8.  A review of the business's past activities in this
479	state or other states, including whether such business has been
480	subjected to criminal or civil fines and penalties. This
481	subparagraph does not require the disclosure of confidential
482	information.
483	(d)  Applications shall be reviewed and certified pursuant
484	to s. 288.061. The office shall include in its review
485	projections of the tax refunds the business would be eligible to
486	receive in each fiscal year based on the creation and
487	maintenance of the net new Florida jobs specified in
488	subparagraph (a)4. as of December 31 of the preceding state
489	fiscal year. If appropriate, the office director shall enter
490	into a written agreement with the qualified target industry
491	business pursuant to subsection (5) (4).
492	(e)  The office director may not certify any target
493	industry business as a qualified target industry business if the
494	value of tax refunds to be included in that letter of
495	certification exceeds the available amount of authority to
496	certify new businesses as determined in s. 288.095(3). However,
497	if the commitments of local financial support represent less
498	than 20 percent of the eligible tax refund payments, or to
499	otherwise preserve the viability and fiscal integrity of the
500	program, the office director may certify a qualified target
501	industry business to receive tax refund payments of less than
502	the allowable amounts specified in paragraph (3)(2)(b). A letter
503	of certification that approves an application must specify the
504	maximum amount of tax refund that will be available to the
505	qualified industry business in each fiscal year and the total
506	amount of tax refunds that will be available to the business for
507	all fiscal years.
508	(f)  This section does not create a presumption that an
509	applicant will shall receive any tax refunds under this section.
510	However, the office may issue nonbinding opinion letters, upon
511	the request of prospective applicants, as to the applicants'
512	eligibility and the potential amount of refunds.
513	(5)(4)  TAX REFUND AGREEMENT.-
514	(a)  Each qualified target industry business must enter
515	into a written agreement with the office that which specifies,
516	at a minimum:
517	1.  The total number of full-time equivalent jobs in this
518	state that will be dedicated to the project, the average wage of
519	those jobs, the definitions that will apply for measuring the
520	achievement of these terms during the pendency of the agreement,
521	and a time schedule or plan for when such jobs will be in place
522	and active in this state.
523	2.  The maximum amount of tax refunds that which the
524	qualified target industry business is eligible to receive on the
525	project and the maximum amount of a tax refund that the
526	qualified target industry business is eligible to receive for
527	each fiscal year, based on the job creation and maintenance
528	schedule specified in subparagraph 1.
529	3.  That the office may review and verify the financial and
530	personnel records of the qualified target industry business to
531	ascertain whether that business is in compliance with this
532	section.
533	4.  The date by which, in each fiscal year, the qualified
534	target industry business may file a claim under subsection (6)
535	(5) to be considered to receive a tax refund in the following
536	fiscal year.
537	5.  That local financial support will be annually available
538	and will be paid to the account. The office director may not
539	enter into a written agreement with a qualified target industry
540	business if the local financial support resolution is not passed
541	by the local governing body authority within 90 days after the
542	office he or she has issued the letter of certification under
543	subsection (4) (3).
544	6.  That the office may conduct a review of the business to
545	evaluate whether the business is continuing to contribute to the
546	area's or state's economy.
547	7.  That in the event the business does not complete the
548	agreement, the business will provide the office with the reasons
549	the business was unable to complete the agreement.
550	(b)  Compliance with the terms and conditions of the
551	agreement is a condition precedent for the receipt of a tax
552	refund each year. The failure to comply with the terms and
553	conditions of the tax refund agreement results in the loss of
554	eligibility for receipt of all tax refunds previously authorized
555	under this section and the revocation by the office director of
556	the certification of the business entity as a qualified target
557	industry business, unless the business is eligible to receive
558	and elects to accept a prorated refund under paragraph (6)(e)
559	(5)(d) or the office grants the business an economic recovery
560	extension economic-stimulus exemption.
561	1.  A qualified target industry business may submit, in
562	writing, a request to the office for an economic recovery
563	extension economic-stimulus exemption. The request must provide
564	quantitative evidence demonstrating how negative economic
565	conditions in the business's industry, the effects of the impact
566	of a named hurricane or tropical storm, or specific acts of
567	terrorism affecting the qualified target industry business have
568	prevented the business from complying with the terms and
569	conditions of its tax refund agreement.
570	2.  Upon receipt of a request under subparagraph 1., the
571	office has director shall have 45 days to notify the requesting
572	business, in writing, whether if its extension exemption has
573	been granted or denied. In determining whether if an extension
574	exemption should be granted, the office director shall consider
575	the extent to which negative economic conditions in the
576	requesting business's industry have occurred in the state or the
577	effects of the impact of a named hurricane or tropical storm or
578	specific acts of terrorism affecting the qualified target
579	industry business have prevented the business from complying
580	with the terms and conditions of its tax refund agreement. The
581	office shall consider current employment statistics for this
582	state by industry, including whether the business's industry had
583	substantial job loss during the prior year, when determining
584	whether an extension exemption shall be granted.
585	3.  As a condition for receiving a prorated refund under
586	paragraph (6)(e) (5)(d) or an economic recovery extension
587	economic-stimulus exemption under this paragraph, a qualified
588	target industry business must agree to renegotiate its tax
589	refund agreement with the office to, at a minimum, ensure that
590	the terms of the agreement comply with current law and office
591	procedures governing application for and award of tax refunds.
592	Upon approving the award of a prorated refund or granting an
593	economic recovery extension economic-stimulus exemption, the
594	office shall renegotiate the tax refund agreement with the
595	business as required by this subparagraph. When amending the
596	agreement of a business receiving an economic recovery extension
597	economic-stimulus exemption, the office may extend the duration
598	of the agreement for a period not to exceed 2 years.
599	4.  A qualified target industry business may submit a
600	request for an economic recovery extension economic-stimulus
601	exemption to the office in lieu of any tax refund claim
602	scheduled to be submitted after January 1, 2009, but before July
603	1, 2012 2011.
604	5.  A qualified target industry business that receives an
605	economic recovery extension economic-stimulus exemption may not
606	receive a tax refund for the period covered by the extension
607	exemption.
608	(c)  The agreement must be signed by the director and by an
609	authorized officer of the qualified target industry business
610	within 120 days after the issuance of the letter of
611	certification under subsection (4) (3), but not before passage
612	and receipt of the resolution of local financial support. The
613	office may grant an extension of this period at the written
614	request of the qualified target industry business.
615	(d)  The agreement must contain the following legend,
616	clearly printed on its face in bold type of not less than 10
617	points in size: "This agreement is not neither a general
618	obligation of the State of Florida, nor is it backed by the full
619	faith and credit of the State of Florida. Payment of tax refunds
620	is are conditioned on and subject to specific annual
621	appropriations by the Florida Legislature of moneys sufficient
622	to pay amounts authorized in section 288.106, Florida Statutes."
623	(6)(5)  ANNUAL CLAIM FOR REFUND.-
624	(a)  To be eligible to claim any scheduled tax refund, a
625	qualified target industry business that has entered into a tax
626	refund agreement with the office under subsection (5) (4) must
627	apply by January 31 of each fiscal year to the office for the
628	tax refund scheduled to be paid from the appropriation for the
629	fiscal year that begins on July 1 following the January 31
630	claims-submission date. The office may, upon written request,
631	grant a 30-day extension of the filing date.
632	(b)  The claim for refund by the qualified target industry
633	business must include a copy of all receipts pertaining to the
634	payment of taxes for which the refund is sought and data related
635	to achievement of each performance item specified in the tax
636	refund agreement. The amount requested as a tax refund may not
637	exceed the amount specified for the relevant fiscal year in that
638	agreement.
639	(c)  The office may waive the requirement for proof of
640	taxes paid in future years for a qualified target industry
641	business that provides the office with proof that, in a single
642	year, the business has paid an amount of state taxes from the
643	categories in paragraph (3)(d) that is at least equal to the
644	total amount of tax refunds that the business may receive
645	through successful completion of its tax refund agreement.
646	(d)(c)  A tax refund may not be approved for a qualified
647	target industry business unless the required local financial
648	support has been paid into the account for that refund. If the
649	local financial support provided is less than 20 percent of the
650	approved tax refund, the tax refund must be reduced. In no event
651	may the tax refund exceed an amount that is equal to 5 times the
652	amount of the local financial support received. Further, funding
653	from local sources includes any tax abatement granted to that
654	business under s. 196.1995 or the appraised market value of
655	municipal or county land conveyed or provided at a discount to
656	that business. The amount of any tax refund for such business
657	approved under this section must be reduced by the amount of any
658	such tax abatement granted or the value of the land granted,;
659	and the limitations in subsection (3) (2) and paragraph
660	(4)(3)(e) must be reduced by the amount of any such tax
661	abatement or the value of the land granted. A report listing all
662	sources of the local financial support shall be provided to the
663	office when such support is paid to the account.
664	(e)(d)  A prorated tax refund, less a 5-percent penalty,
665	shall be approved for a qualified target industry business if
666	provided all other applicable requirements have been satisfied
667	and the business proves to the satisfaction of the office
668	director that:
669	1.  It has achieved at least 80 percent of its projected
670	employment; and that
671	2.  The average wage paid by the business is at least 90
672	percent of the average wage specified in the tax refund
673	agreement, but in no case less than 115 percent of the average
674	private sector wage in the area available at the time of
675	certification, or 150 percent or 200 percent of the average
676	private sector wage if the business requested the additional
677	per-job tax refund authorized in paragraph (3)(2)(b) for wages
678	above those levels. The prorated tax refund shall be calculated
679	by multiplying the tax refund amount for which the qualified
680	target industry business would have been eligible, if all
681	applicable requirements had been satisfied, by the percentage of
682	the average employment specified in the tax refund agreement
683	which was achieved, and by the percentage of the average wages
684	specified in the tax refund agreement which was achieved.
685	(f)(e)  The office director, with such assistance as may be
686	required from the office, the Department of Revenue, or the
687	Agency for Workforce Innovation, shall, by June 30 following the
688	scheduled date for submission of the tax refund claim, specify
689	by written order the approval or disapproval of the tax refund
690	claim and, if approved, the amount of the tax refund that is
691	authorized to be paid to the qualified target industry business
692	for the annual tax refund. The office may grant an extension of
693	this date on the request of the qualified target industry
694	business for the purpose of filing additional information in
695	support of the claim.
696	(g)(f)  The total amount of tax refund claims approved by
697	the office director under this section in any fiscal year must
698	not exceed the amount authorized under s. 288.095(3).
699	(h)(g)  This section does not create a presumption that a
700	tax refund claim will be approved and paid.
701	(i)(h)  Upon approval of the tax refund under paragraphs
702	(c), (d), and (e), and (f), the Chief Financial Officer shall
703	issue a warrant for the amount specified in the written order.
704	If the written order is appealed, the Chief Financial Officer
705	may not issue a warrant for a refund to the qualified target
706	industry business until the conclusion of all appeals of that
707	order.
708	(7)(6)  ADMINISTRATION.-
709	(a)  The office may is authorized to verify information
710	provided in any claim submitted for tax credits under this
711	section with regard to employment and wage levels or the payment
712	of the taxes to the appropriate agency or authority, including
713	the Department of Revenue, the Agency for Workforce Innovation,
714	or any local government or authority.
715	(b)  To facilitate the process of monitoring and auditing
716	applications made under this section program, the office may
717	provide a list of qualified target industry businesses to the
718	Department of Revenue, to the Agency for Workforce Innovation,
719	or to any local government or authority. The office may request
720	the assistance of those entities with respect to monitoring
721	jobs, wages, and the payment of the taxes listed in subsection
722	(3) (2).
723	(c)  Funds specifically appropriated for the tax refunds
724	refund program for qualified target industry businesses under
725	this section may not be used by the office for any purpose other
726	than the payment of tax refunds authorized by this section.
727	(d)  Beginning with tax refund agreements signed after July
728	1, 2010, the office shall attempt to ascertain the causes for
729	any business's failure to complete its agreement and shall
730	report its findings and recommendations to the Governor, the
731	President of the Senate, and the Speaker of the House of
732	Representatives. The report shall be submitted by December 1 of
733	each year beginning in 2011.
734	(7)  Notwithstanding paragraphs (4)(a) and (5)(c), the
735	office may approve a waiver of the local financial support
736	requirement for a business located in any of the following
737	counties in which businesses received emergency loans
738	administered by the office in response to the named hurricanes
739	of 2004: Bay, Brevard, Charlotte, DeSoto, Escambia, Flagler,
740	Glades, Hardee, Hendry, Highlands, Indian River, Lake, Lee,
741	Martin, Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Polk,
742	Putnam, Santa Rosa, Seminole, St. Lucie, Volusia, and Walton. A
743	waiver may be granted only if the office determines that the
744	local financial support cannot be provided or that doing so
745	would effect a demonstrable hardship on the unit of local
746	government providing the local financial support. If the office
747	grants a waiver of the local financial support requirement, the
748	state shall pay 100 percent of the refund due to an eligible
749	business. The waiver shall apply for tax refund applications
750	made for fiscal years 2004-2005, 2005-2006, and 2006-2007.
751	(8)  EXPIRATION.-An applicant may not be certified as
752	qualified under this section after June 30, 2020 2010. A tax
753	refund agreement existing on that date shall continue in effect
754	in accordance with its terms.
755	Section 2.  Subsection (11) of section 159.803, Florida
756	Statutes, is amended to read:
757	159.803  Definitions.-As used in this part, the term:
758	(11)  "Florida First Business project" means any project
759	which is certified by the Office of Tourism, Trade, and Economic
760	Development as eligible to receive an allocation from the
761	Florida First Business allocation pool established pursuant to
762	s. 159.8083. The Office of Tourism, Trade, and Economic
763	Development may certify those projects meeting the criteria set
764	forth in s. 288.106(4)(3)(b) or any project providing a
765	substantial economic benefit to this state.
766	Section 3.  Paragraph (h) of subsection (1) of section
767	220.191, Florida Statutes, is amended to read:
768	220.191  Capital investment tax credit.-
769	(1)  DEFINITIONS.-For purposes of this section:
770	(h)  "Qualifying project" means:
771	1.  A new or expanding facility in this state which creates
772	at least 100 new jobs in this state and is in one of the high-
773	impact sectors identified by Enterprise Florida, Inc., and
774	certified by the office pursuant to s. 288.108(6), including,
775	but not limited to, aviation, aerospace, automotive, and silicon
776	technology industries;
777	2.  A new or expanded facility in this state which is
778	engaged in a target industry designated pursuant to the
779	procedure specified in s. 288.106(2)(t)(1)(o) and which is
780	induced by this credit to create or retain at least 1,000 jobs
781	in this state, provided that at least 100 of those jobs are new,
782	pay an annual average wage of at least 130 percent of the
783	average private sector wage in the area as defined in s.
784	288.106(2)(1), and make a cumulative capital investment of at
785	least $100 million after July 1, 2005. Jobs may be considered
786	retained only if there is significant evidence that the loss of
787	jobs is imminent. Notwithstanding subsection (2), annual credits
788	against the tax imposed by this chapter shall not exceed 50
789	percent of the increased annual corporate income tax liability
790	or the premium tax liability generated by or arising out of a
791	project qualifying under this subparagraph. A facility that
792	qualifies under this subparagraph for an annual credit against
793	the tax imposed by this chapter may take the tax credit for a
794	period not to exceed 5 years; or
795	3.  A new or expanded headquarters facility in this state
796	which locates in an enterprise zone and brownfield area and is
797	induced by this credit to create at least 1,500 jobs which on
798	average pay at least 200 percent of the statewide average annual
799	private sector wage, as published by the Agency for Workforce
800	Innovation or its successor, and which new or expanded
801	headquarters facility makes a cumulative capital investment in
802	this state of at least $250 million.
803	Section 4.  Paragraph (e) of subsection (1), subsection
804	(2), paragraphs (a) and (d) of subsection (4), and paragraph (b)
805	of subsection (5) of section 288.107, Florida Statutes, are
806	amended to read:
807	288.107  Brownfield redevelopment bonus refunds.-
808	(1)  DEFINITIONS.-As used in this section:
809	(e)  "Eligible business" means:
810	1.  A qualified target industry business as defined in s.
811	288.106(2)(1)(o); or
812	2.  A business that can demonstrate a fixed capital
813	investment of at least $2 million in mixed-use business
814	activities, including multiunit housing, commercial, retail, and
815	industrial in brownfield areas, or at least $500,000 in
816	brownfield areas that do not require site cleanup, and that
817	which provides benefits to its employees.
818	(2)  BROWNFIELD REDEVELOPMENT BONUS REFUND.-Bonus refunds
819	shall be approved by the office as specified in the final order
820	issued by the director and allowed from the account as follows:
821	(a)  A bonus refund of $2,500 shall be allowed to any
822	qualified target industry business as defined in by s. 288.106
823	for each new Florida job created in a brownfield area that which
824	is claimed on the qualified target industry business's annual
825	refund claim authorized in s. 288.106(6)(5).
826	(b)  A bonus refund of up to $2,500 shall be allowed to any
827	other eligible business as defined in subparagraph (1)(e)2. for
828	each new Florida job created in a brownfield area that which is
829	claimed under an annual claim procedure similar to the annual
830	refund claim authorized in s. 288.106(6)(5). The amount of the
831	refund shall be equal to 20 percent of the average annual wage
832	for the jobs created.
833	(4)  PAYMENT OF BROWNFIELD REDEVELOPMENT BONUS REFUNDS.-
834	(a)  To be eligible to receive a bonus refund for new
835	Florida jobs created in a brownfield area, a business must have
836	been certified as a qualified target industry business under s.
837	288.106 or eligible business as defined in paragraph (1)(e) and
838	must have indicated on the qualified target industry business
839	tax refund application form submitted in accordance with s.
840	288.106(4)(3) or other similar agreement for other eligible
841	business as defined in paragraph (1)(e) that the project for
842	which the application is submitted is or will be located in a
843	brownfield area and that the business is applying for
844	certification as a qualified brownfield business under this
845	section, and must have signed a qualified target industry
846	business tax refund agreement with the office that which
847	indicates that the business has been certified as a qualified
848	target industry business located in a brownfield area and
849	specifies the schedule of brownfield redevelopment bonus refunds
850	that the business may be eligible to receive in each fiscal
851	year.
852	(d)  After entering into a tax refund agreement as provided
853	in s. 288.106 or other similar agreement for other eligible
854	businesses as defined in paragraph (1)(e), an eligible business
855	may receive brownfield redevelopment bonus refunds from the
856	account pursuant to s. 288.106(3)(d)(2)(c).
857	(5)  ADMINISTRATION.-
858	(b)  To facilitate the process of monitoring and auditing
859	applications made under this program, the office may provide a
860	list of qualified target industry businesses to the Department
861	of Revenue, to the Agency for Workforce Innovation, to the
862	Department of Environmental Protection, or to any local
863	government authority. The office may request the assistance of
864	those entities with respect to monitoring the payment of the
865	taxes listed in s. 288.106(3)(2).
866	Section 5.  Paragraph (s) of subsection (2) of section
867	288.1089, Florida Statutes, is amended to read:
868	288.1089  Innovation Incentive Program.-
869	(2)  As used in this section, the term:
870	(s)  "Rural area" means a rural city or, rural community,
871	or rural county as defined in s. 288.106.
872	Section 6.  Section 290.00677, Florida Statutes, is amended
873	to read:
874	290.00677  Rural enterprise zones; special qualifications.-
875	(1)  Notwithstanding the enterprise zone residency
876	requirements set out in s. 212.096(1)(c), eligible businesses as
877	defined in by s. 212.096(1)(a), located in rural enterprise
878	zones as defined in by s. 290.004, may receive the basic minimum
879	credit provided under s. 212.096 for creating a new job and
880	hiring a person residing within the jurisdiction of a rural
881	community county, as defined in by s. 288.106(2)(1)(r). All
882	other provisions of s. 212.096, including, but not limited to,
883	those relating to the award of enhanced credits, apply to such
884	businesses.
885	(2)  Notwithstanding the enterprise zone residency
886	requirements set out in s. 220.03(1)(q), businesses as defined
887	in by s. 220.03(1)(c), located in rural enterprise zones as
888	defined in s. 290.004, may receive the basic minimum credit
889	provided under s. 220.181 for creating a new job and hiring a
890	person residing within the jurisdiction of a rural community
891	county, as defined in by s. 288.106(2)(1)(r). All other
892	provisions of s. 220.181, including, but not limited to, those
893	relating to the award of enhanced credits, apply to such
894	businesses.
895	Section 7.  This act shall take effect July 1, 2010.

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