HB 1051

1	A bill to be entitled
2	An act relating to economic development; creating the
3	"Small Business Jobs Creation Act"; amending s. 288.061,
4	F.S.; reducing the time period within which Enterprise
5	Florida, Inc., and the Office of Tourism, Trade, and
6	Economic Development must review and evaluate applications
7	for state economic development incentives; amending s.
8	288.106, F.S.; reducing the time period within which a
9	local government must adopt a resolution to provide
10	financial support to a business applying to participate in
11	the tax refund program for qualified target industry
12	businesses; reducing the time period within which a
13	business applying to participate in the tax refund program
14	for qualified target industry must sign an agreement with
15	the Office of Tourism, Trade, and Economic Development;
16	authorizing an extension of time for a business to sign an
17	agreement under certain circumstances; requiring the
18	Office of Tourism, Trade, and Economic Development to
19	return the unused portion of local financial support
20	within a specified time period if a business fails to
21	timely sign an agreement or no longer participates in the
22	tax refund program; waiving the requirements for certain
23	businesses to pay a minimum average wage during the first
24	year of an agreement under the tax refund program for
25	qualified target industry businesses; amending s. 400.462,
26	F.S.; redefining the term "remuneration" as used in the
27	Home Health Services Act to exclude certain items having a
28	value less than a specified threshold amount; providing an
29	effective date.
30
31	WHEREAS, Florida has more than 2 million small businesses
32	and more than 1 million self-employed persons, according to a
33	2009 report produced by the U.S. Small Business Administration's
34	Office of Advocacy, and
35	WHEREAS, Florida's small businesses comprise more than 90
36	percent of the total number of businesses in Florida and employ
37	at least 44 percent of private-sector employees, and
38	WHEREAS, from 2003 until 2006, the greatest number of jobs
39	attributable to small businesses were created by companies
40	having fewer than five employees, according to the U.S. Small
41	Business Administration, and
42	WHEREAS, the Great Recession of 2009-2010 afflicted even
43	more agile small businesses in Florida and nationwide with
44	losses of jobs, contracts, and capital, and
45	WHEREAS, Florida's unemployment rate is at 12 percent,
46	equating to 1.1 million Floridians out of work, many of whom are
47	former employees of a small business, and
48	WHEREAS, in surveys and at public forums provided by the
49	Florida Office of Small Business Advocate in 2010, small
50	business owners revealed that their top three concerns were
51	access to capital, the lack of small business incentives, and an
52	unstable or less favorable climate for small businesses, and
53	WHEREAS, Florida's target industry sectors, including all
54	types of manufacturing, offer the promise of jobs that pay
55	higher wages and more stable employment, NOW, THEREFORE,
56
57	Be It Enacted by the Legislature of the State of Florida:
58
59	Section 1.  This act may be cited as the "Small Business
60	Jobs Creation Act."
61	Section 2.  Section 288.061, Florida Statutes, is amended
62	to read:
63	288.061  Economic development incentive application
64	process.-
65	(1)  Within 4 10 business days after receiving a submitted
66	economic development incentive application, Enterprise Florida,
67	Inc., shall review the application and inform the applicant
68	business whether or not its application is complete. Within 10
69	business days after the application is deemed complete,
70	Enterprise Florida, Inc., shall evaluate the application and
71	recommend approval or disapproval of the application to the
72	director of the Office of Tourism, Trade, and Economic
73	Development. In recommending an applicant business for approval,
74	Enterprise Florida, Inc., shall include in its evaluation a
75	recommended grant award amount and a review of the applicant's
76	ability to meet specific program criteria.
77	(2)  Within 3 10 calendar days after the Office of Tourism,
78	Trade, and Economic Development receives the evaluation and
79	recommendation from Enterprise Florida, Inc., the office shall
80	notify Enterprise Florida, Inc., whether or not the application
81	is reviewable. Within 14 22 calendar days after the office
82	receives the recommendation from Enterprise Florida, Inc., the
83	director of the office shall review the application and issue a
84	letter of certification to the applicant that approves or
85	disapproves an applicant business and includes a justification
86	of that decision, unless the business requests an extension of
87	that time. The final order shall specify the total amount of the
88	award, the performance conditions that must be met to obtain the
89	award, and the schedule for payment.
90	Section 3.  Subsection (5) of section 288.106, Florida
91	Statutes, is amended, present subsection (8) of that section is
92	renumbered as subsection (9), and a new subsection (8) is added
93	to that section, to read:
94	288.106  Tax refund program for qualified target industry
95	businesses.-
96	(5)  TAX REFUND AGREEMENT.-
97	(a)  Each qualified target industry business must enter
98	into a written agreement with the office that specifies, at a
99	minimum:
100	1.  The total number of full-time equivalent jobs in this
101	state which that will be dedicated to the project, the average
102	wage of those jobs, the definitions that will apply for
103	measuring the achievement of these terms during the pendency of
104	the agreement, and a time schedule or plan for when such jobs
105	will be in place and active in this state.
106	2.  The maximum amount of tax refunds that the qualified
107	target industry business is eligible to receive on the project
108	and the maximum amount of a tax refund that the qualified target
109	industry business is eligible to receive for each fiscal year,
110	based on the job creation and maintenance schedule specified in
111	subparagraph 1.
112	3.  That the office may review and verify the financial and
113	personnel records of the qualified target industry business to
114	ascertain whether that business is in compliance with this
115	section.
116	4.  The date by which, in each fiscal year, the qualified
117	target industry business may file a claim under subsection (6)
118	to be considered to receive a tax refund in the following fiscal
119	year.
120	5.  That local financial support will be annually available
121	and will be paid to the account. The office may not enter into a
122	written agreement with a qualified target industry business if
123	the local financial support resolution is not passed by the
124	local governing body within 45 90 days after the office has
125	issued the letter of certification under subsection (4).
126	6.  That the office may conduct a review of the business to
127	evaluate whether the business is continuing to contribute to the
128	area's or state's economy.
129	7.  That in the event the business does not complete the
130	agreement, the business will provide the office with the reasons
131	the business was unable to complete the agreement.
132	(b)  Compliance with the terms and conditions of the
133	agreement is a condition precedent for the receipt of a tax
134	refund each year. The failure to comply with the terms and
135	conditions of the tax refund agreement results in the loss of
136	eligibility for receipt of all tax refunds previously authorized
137	under this section and the revocation by the office of the
138	certification of the business entity as a qualified target
139	industry business, unless the business is eligible to receive
140	and elects to accept a prorated refund under paragraph (6)(e) or
141	the office grants the business an economic recovery extension.
142	1.  A qualified target industry business may submit a
143	request to the office for an economic recovery extension. The
144	request must provide quantitative evidence demonstrating how
145	negative economic conditions in the business's industry, the
146	effects of a named hurricane or tropical storm, or specific acts
147	of terrorism affecting the qualified target industry business
148	have prevented the business from complying with the terms and
149	conditions of its tax refund agreement.
150	2.  Upon receipt of a request under subparagraph 1., the
151	office has 45 days to notify the requesting business, in
152	writing, whether its extension has been granted or denied. In
153	determining whether an extension should be granted, the office
154	shall consider the extent to which negative economic conditions
155	in the requesting business's industry have occurred in the state
156	or the effects of a named hurricane or tropical storm or
157	specific acts of terrorism affecting the qualified target
158	industry business have prevented the business from complying
159	with the terms and conditions of its tax refund agreement. The
160	office shall consider current employment statistics for this
161	state by industry, including whether the business's industry had
162	substantial job loss during the prior year, when determining
163	whether an extension shall be granted.
164	3.  As a condition for receiving a prorated refund under
165	paragraph (6)(e) or an economic recovery extension under this
166	paragraph, a qualified target industry business must agree to
167	renegotiate its tax refund agreement with the office to, at a
168	minimum, ensure that the terms of the agreement comply with
169	current law and office procedures governing application for and
170	award of tax refunds. Upon approving the award of a prorated
171	refund or granting an economic recovery extension, the office
172	shall renegotiate the tax refund agreement with the business as
173	required by this subparagraph. When amending the agreement of a
174	business receiving an economic recovery extension, the office
175	may extend the duration of the agreement for a period not to
176	exceed 2 years.
177	4.  A qualified target industry business may submit a
178	request for an economic recovery extension to the office in lieu
179	of any tax refund claim scheduled to be submitted after January
180	1, 2009, but before July 1, 2012.
181	5.  A qualified target industry business that receives an
182	economic recovery extension may not receive a tax refund for the
183	period covered by the extension.
184	(c)  The agreement must be signed by the director and by an
185	authorized officer of the qualified target industry business
186	within 60 120 days after the issuance of the letter of
187	certification under subsection (4), but not before passage and
188	receipt of the resolution of local financial support. The office
189	may grant an extension of this period for up to 60 days at the
190	written request of the qualified target industry business if the
191	business provides the office with compelling reasons for the
192	delay. If an agreement is not signed by the business within 120
193	days after the letter of certification is issued, the office
194	must withdraw the certification. The target industry business
195	may not reapply to participate in the program until the
196	subsequent state fiscal year.
197	(d)  If an agreement is not signed by a target industry
198	business within the time specified in paragraph (c), or if a
199	business withdraws from the agreement or the office terminates
200	the agreement for noncompliance under paragraph (b), the office
201	must return the unused portion of the local financial support to
202	the applicable local government within 6 months after those
203	events.
204	(e)(d)  The agreement must contain the following legend,
205	clearly printed on its face in bold type of not less than 10
206	points in size: "This agreement is not a general obligation of
207	the State of Florida, nor is it backed by the full faith and
208	credit of the State of Florida. Payment of tax refunds is
209	conditioned on and subject to specific annual appropriations by
210	the Florida Legislature sufficient to pay amounts authorized in
211	section 288.106, Florida Statutes."
212	(8)  WAIVER OF AVERAGE ANNUAL WAGE REQUIREMENT.-The average
213	annual wage requirement is waived for the first year of an
214	agreement for any target industry business that enters into a
215	tax refund agreement under subsection (5) between July 1, 2011,
216	and June 30, 2012, and agrees to expand its operations within
217	this state.
218	Section 4.  Subsection (27) of section 400.462, Florida
219	Statutes, is amended to read:
220	400.462  Definitions.-As used in this part, the term:
221	(27)  "Remuneration" means any payment or other benefit
222	made directly or indirectly, overtly or covertly, in cash or in
223	kind. The term does not include items having an individual value
224	of less than $10 such as plaques, certificates, trophies, or
225	novelties that are intended solely for presentation or are
226	customarily given away solely for promotional or advertising
227	purposes or to recognize a person for an achievement.
228	Section 5.  This act shall take effect July 1, 2011.

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