Florida Senate - 2011                                     SB 620
       
       
       
       By Senator Garcia
       
       
       
       
       40-00624-11                                            2011620__
    1                        A bill to be entitled                      
    2         An act relating to enterprise program development
    3         zones; designating the act as the “Urban Job Creation
    4         Investment Act”; providing definitions; creating the
    5         Urban Investment Job Creation Authority; providing for
    6         the appointment of members to the authority;
    7         specifying the duties of the authority to include
    8         specifying enterprise program zone boundaries,
    9         reviewing applications from businesses to become
   10         eligible for certain tax benefits, reviewing proposed
   11         projects for eligibility to receive funding from a
   12         local enterprise program zone development corporation,
   13         and conducting studies and filing reports; requiring
   14         the Office of Tourism, Trade, and Economic Development
   15         to provide administrative support to the authority;
   16         providing for the creation of enterprise zone
   17         development corporations by counties and
   18         municipalities as nonprofit corporations; providing
   19         for the appointment of the board of directors of those
   20         corporations; specifying the duties of the
   21         corporations to include implementing an enterprise
   22         program zone development plan, administering an
   23         enterprise zone program assistance fund, prequalifying
   24         applications from businesses to become eligible to
   25         receive certain tax benefits, and preparing annual
   26         reports; specifying criteria for the designation of
   27         enterprise program zones by the Urban Investment Job
   28         Creation Authority upon the expiration of the
   29         enterprise zone program; specifying procedures for
   30         businesses enterprise program zone development
   31         corporations, and the authority to follow to certify a
   32         businesses as qualified businesses that are eligible
   33         to receive certain tax benefits; authorizing the
   34         authority to adopt rules; authorizing a qualified
   35         business to receive tax credits against sales and
   36         corporate income taxes and a subsidy for the cost of
   37         unemployment compensation insurance; authorizing the
   38         Department of Revenue to adopt rules relating to the
   39         tax credits; requiring enterprise program zone
   40         development corporations to create an enterprise
   41         program zone assistance fund using the proceeds of
   42         certain incremental sales tax revenues in excess of
   43         the sales and tax revenue generated within the zone
   44         during a specified fiscal year; requiring the payment
   45         of those tax revenues from the Department of Revenue,
   46         counties, and municipalities to enterprise program
   47         zone development corporations; authorizing those funds
   48         to be used upon approval by the authority for urban
   49         improvement projects; requiring the authority to
   50         account for the funds; requiring the Office of Program
   51         Policy Analysis and Government Accountability to
   52         evaluate the effectiveness of enterprise program zones
   53         and issue a report of its findings and recommendations
   54         before the expiration of the act; providing for future
   55         expiration of the act; providing an effective date.
   56  
   57  Be It Enacted by the Legislature of the State of Florida:
   58  
   59         Section 1. Short title.—This act may be cited as the “Urban
   60  Job Creation Investment Act.”
   61         Section 2. Definitions.—As used in sections 1 through 10 of
   62  this act, the term:
   63         (1) “Authority” means the Florida Urban Investment Job
   64  Creation Authority.
   65         (2) “Business” has the same meaning as provided in s.
   66  212.02, Florida Statutes.
   67         (3) “Enterprise program zone” means a zone designated by
   68  the authority within which a qualified business may receive
   69  certain corporate and sales tax benefits.
   70         (4) “Enterprise zone program assistance fund” means a fund
   71  to be administered by a zone development corporation consisting
   72  of additional sales tax revenue generated by qualified
   73  businesses in excess of the amount of sales and tax revenue
   74  generated in an enterprise program zone during the 2010-2011
   75  state fiscal year.
   76         (5) “Qualified business” means a business that is located
   77  within an enterprise program zone and certified by the authority
   78  as meeting the criteria to receive certain corporate and sales
   79  tax benefits.
   80         (6) “Zone development corporation” means a nonprofit
   81  corporation created by a county or municipality to recommend
   82  enterprise program zone boundaries, create and implement a
   83  preliminary enterprise program zone development plan, administer
   84  the enterprise zone program assistance fund, and review
   85  applications to prequalify businesses as a qualified business.
   86         (7) “Zone development plan” means a plan that is adopted by
   87  a zone development corporation, sets the goals for the
   88  enterprise program goals, and identifies the steps to achieve
   89  those goals.
   90         Section 3. Urban Investment Job Creation Authority;
   91  creation; membership and duties.—
   92         (1) The Urban Investment Job Creation Authority is created.
   93  The Urban Investment Job Creation Authority shall have 11
   94  members, as follows:
   95         (a) Five members of the public appointed by the Governor.
   96  Three of these members must reside or work in an enterprise
   97  program zone. No more than three of these five members may be
   98  members of the same political party.
   99         (b) One member appointed by the Governor who is an owner or
  100  officer of a business that is located within an enterprise
  101  program zone and satisfies the requirements to be certified as a
  102  qualified business.
  103         (c) One member appointed by the Chief Financial Officer,
  104  one member appointed by the President of the Senate, and one
  105  member appointed by the Speaker of the House of Representatives.
  106  Each of these members must have experience in the areas of local
  107  government finance, economic development, and redevelopment, or
  108  must have experience with volunteer civic service and community
  109  organizations.
  110         (d) The President of Enterprise Florida, Inc., or his or
  111  her designee.
  112         (e) The director of the Governor’s Office of Tourism,
  113  Trade, and Economic Development or his or her designee.
  114  
  115  Members of the authority who are appointed shall be appointed to
  116  4-year terms ending on June 30. However, in order to ensure
  117  staggered terms, of the initial appointments three members of
  118  the public and the member appointed by the Chief Financial
  119  Officer shall be appointed to 2-year terms. A vacancy shall be
  120  filled in the same manner as the original appointment. A member
  121  of the authority may not receive compensation for his or her
  122  services, but is entitled to reimbursement for per diem and
  123  travel expenses from the county or municipality creating the
  124  corporation, consistent with s. 112.061, Florida Statutes.
  125         (2) The authority shall:
  126         (a) Designate enterprise program zone boundaries after the
  127  repeal of ss. 290.001-290.016, Florida Statutes, on December 31,
  128  2015, based on the recommendations of zone development
  129  corporations and the criteria for the designation of an
  130  enterprise zone under ss. 290.001-290.016, Florida Statutes
  131  2010.
  132         (b) Review applications for certification as a qualified
  133  business which have been prequalified by a zone development
  134  corporation.
  135         (c) Review projects proposed by a zone development
  136  corporation to receive funding from an enterprise program zone
  137  assistance fund.
  138         (d) Certify annually to the Chief Financial Officer,
  139  amounts to be paid from enterprise program zone assistance funds
  140  for approved projects.
  141         (e) File an annual report with the Governor, the President
  142  of the Senate, and the Speaker of the House of Representatives
  143  by September 30th of its activities during the preceding state
  144  fiscal year. The report must include a complete financial
  145  statement setting forth its assets, liabilities, income, and
  146  operating expenses as of the end of the previous state fiscal
  147  year.
  148         (f) File a report of its findings and recommendations from
  149  fiscal impact study of enterprise program zones with the
  150  Governor, the President of the Senate, the Speaker of the House
  151  of Representatives, and the Chief Financial Officer by November
  152  30, 2013, and annually thereafter. The initial financial impact
  153  study must address enterprise program zones that have been in
  154  existence for at least 1 year as of June 30, 2012. Subsequent
  155  studies must address all enterprise program zones. The reports
  156  must include, but need not be limited to, an analysis of the
  157  effects of the enterprise program zones on the economies of the
  158  county and municipalities in which they are located, and any
  159  recommendations for legislation to improve the effectiveness of
  160  the zones. Each enterprise program zone development corporation
  161  shall pay the authority for the pro rata cost of the studies
  162  from their enterprise program zone assistance funds.
  163         (3) The Office of Tourism, Trade, and Economic Development
  164  shall provide administrative support to the authority.
  165         Section 4. Zone development corporations; creation;
  166  membership and duties.—
  167         (1) Each county or municipality having an enterprise zone
  168  created pursuant to ss. 290.001-290.016, Florida Statutes,
  169  before July 1, 2011, shall create a zone development corporation
  170  as a nonprofit corporation. The board of directors shall be
  171  composed of five members as follows:
  172         (a) A member appointed by the Governor who is an owner or
  173  officer of a business that is located within an enterprise
  174  program zone and satisfies the requirements to be certified as a
  175  qualified business.
  176         (b) A member appointed by the President of the Senate who
  177  is a business or community leader who works or resides in the
  178  enterprise program zone.
  179         (c) A member appointed by the Speaker of the House of
  180  Representatives who is a business or community leader who works
  181  or resides in the enterprise program zone.
  182         (d) A member who resides within the county containing the
  183  enterprise program zone and appointed by the chair of the
  184  governing body of the county, if the zone is not exclusively
  185  within the boundaries of a municipality, or a member who resides
  186  within the municipality containing the enterprise program zone
  187  and appointed by the mayor of the municipality, if the zone is
  188  exclusively within the boundaries of a municipality.
  189         5.A member who resides within the county containing the
  190  enterprise program zone and appointed by the governing body of
  191  the county, if the zone is not exclusively within the boundaries
  192  of a municipality, or a member who resides within the
  193  municipality containing the enterprise program zone and
  194  appointed by the governing body of the municipality, if the zone
  195  is exclusively within the boundaries of a municipality.
  196         (2) Members of the authority appointed by the President of
  197  the Senate and the Speaker of the House of Representatives shall
  198  be appointed to 2-year terms ending on June 30. All other
  199  members shall be appointed to 4-year terms. A vacancy shall be
  200  filled in the same manner as the original appointment. A member
  201  shall file a certificate of the appointment or reappointment
  202  with the county or municipal clerk. A member of the board of
  203  directors of a zone development corporation may not receive
  204  compensation for his or her services, but is entitled to
  205  reimbursement for per diem and travel expenses from the county
  206  or municipality creating the corporation, consistent with s.
  207  112.061, Florida Statutes.
  208         (3) The members of a zone development corporation shall
  209  designate a chair and vice chair. Subject to funding by the
  210  county or municipality, each zone development corporation may
  211  employ or designate an executive director, technical experts,
  212  and such other agents and employees, permanent and temporary, as
  213  the zone development corporation requires, and determine their
  214  qualifications, duties, and compensation. For such legal
  215  services as the zone development corporation requires, each zone
  216  development corporation may employ private counsel or use county
  217  or municipal attorneys at the discretion of the county or
  218  municipality.
  219         (4) A zone development corporation shall:
  220         (a) Recommend enterprise program boundaries to the
  221  authority after the repeal of the enterprise zone program under
  222  ss. 290.001-290.016, Florida Statutes, on December 31, 2015.
  223  However, the enterprise zone boundaries created pursuant to ss.
  224  290.001-290.016, Florida Statutes, which are in existence on
  225  June 30, 2011, shall be the initial enterprise zone program
  226  boundaries.
  227         (b) Create and implement an enterprise program zone
  228  development plan. The plan must set the goals for the enterprise
  229  program goals and identify the steps to achieve those goals. The
  230  plan must provide guidance to business and community
  231  organizations.
  232         (c) Administer an enterprise program zone assistance fund.
  233         (d) Review applications from businesses for
  234  prequalification for certification as a qualified business.
  235         (5) An enterprise zone development corporation shall meet
  236  at least quarterly to review applications from businesses for
  237  prequalification as a qualified business. The application of a
  238  business that is prequalified must be forwarded to the authority
  239  for further review within 10 days.
  240         (6) An enterprise program zone development corporation
  241  shall hold an open public forum at least quarterly, in which
  242  urban development projects to be funded from the enterprise
  243  program zone assistance fund may be proposed and discussed.
  244         (7) An enterprise program zone development corporation
  245  shall file a report of its activities during the preceding state
  246  fiscal year with the county or municipal clerk, the authority,
  247  the Governor, the President of the Senate, and the Speaker of
  248  the House of Representatives on or before September 30 of each
  249  year. The report must include a complete financial statement
  250  setting forth the corporation’s assets, liabilities, income, and
  251  operating expenses as of the end of such fiscal year. At the
  252  time of filing the report, each zone development corporation
  253  shall publish in a newspaper of general circulation in the area
  254  affected, notice that such report has been filed and is
  255  available for inspection during business hours in the offices of
  256  the zone development corporation.
  257         Section 5. Enterprise program zone; criteria; procedures.—
  258         (1) By June 30, 2015, each enterprise program zone
  259  development corporation shall create an economic report
  260  featuring the most current census data and other economic
  261  indicators that exhibit the most economically blighted areas
  262  located within the federal empowerment zones within the
  263  boundaries of its enterprise program zone. Each zone development
  264  corporation shall recommend enterprise program zone boundaries
  265  using the economic report and the criteria for enterprise zones
  266  under ss. 290.001-290.016, Florida Statutes 2010. The area of
  267  the enterprise program zones within a county or municipality may
  268  not exceed 25 percent of the area of the federal empowerment
  269  zones in the respective county or municipality which were in
  270  existence on June 30, 2011. By September 30, 2015, each zone
  271  development corporation shall submit its recommended enterprise
  272  program zone boundaries along with the economic report to the
  273  authority. The authority shall designate enterprise program zone
  274  boundaries that shall become effective January 1, 2016.
  275         Section 6. Certification as a qualified business; criteria
  276  and procedures.—
  277         (1) A business seeking to become certified as a qualified
  278  business must apply on forms created by the authority to its
  279  local enterprise program zone development corporation for
  280  prequalification. If prequalified, the application shall be
  281  forwarded to the authority for further review.
  282         (2)(a) To become certified as a qualified business, the
  283  business’ application for certification must, at a minimum,
  284  contain documentation showing that the business satisfies the
  285  following criteria:
  286         1. Is located and actively conduct business within an
  287  enterprise program zone.
  288         2 Has employees at least 25 percent of whom:
  289         a. Are residents of the enterprise program zone, an
  290  empowerment zone, or an enterprise zone;
  291         b. Were employed by the business on or after July 1, 2011,
  292  and were unemployed for at least 6 months immediately preceding
  293  employment with the business at its location within the
  294  enterprise program zone;
  295         c. Were employed by the business on or after July 1, 2011,
  296  and were recipients of public assistance for at least 6 months
  297  immediately preceding employment; or
  298         d. Were employed by the business on or after July 1, 2011,
  299  and were determined to be economically disadvantaged in the
  300  period immediate preceding employment with the business under
  301  the Jobs Training Partnership Act, 29 U.S.C. 1501 et seq.
  302         (b) An application for certification must also identify or
  303  include information relating to:
  304         1.Real and tangible personal property owned or leased by
  305  the business before and after July 1, 2011, if any;
  306         2.Net new or additional real and tangible personal
  307  property acquired on or after July 1, 2011, to facilitate a new,
  308  expanded, or rebuilt facility; and
  309         3. Comprehensive urban planning, neighborhood aesthetics
  310  and compatibility, and maximization of economic development and
  311  job-creation opportunities, as specified by the authority.
  312         (3) The authority shall transmit a copy of its order
  313  approving or denying an application for certification or
  314  revoking a certification to the business.
  315         (4) The authority must transmit a copy of its order
  316  certifying a business as a qualified business or revoking
  317  certification to the executive director of the Department of
  318  Revenue within 10 days after it enters its order.
  319         (5) The authority shall require a qualified business to
  320  annually establish that it satisfies the criteria in subsection
  321  (2) in order to remain certified as a qualified business.
  322         (6) The authority shall adopt rules to administer this
  323  section.
  324         Section 7. Tax benefits for qualified businesses.—
  325         (1)(a) A qualified business is entitled to:
  326         1. A 50 percent tax credit against the sales or use tax
  327  imposed on its purchases pursuant to chapter 212, Florida
  328  Statutes, except for purchases of motor vehicles or adult
  329  entertainment products or services;
  330         2. A one-time credit against the business’ corporate income
  331  tax liability of $1,500 for each new full-time employee who is
  332  hired on or after July 1, 2011, who is a resident of an
  333  enterprise program zone, and who was unemployed for at least 90
  334  days immediately preceding employment with the business or was
  335  receiving public assistance;
  336         3. A subsidy, as determined and provided by the enterprise
  337  zone development corporation, for unemployment compensation
  338  insurance costs for employees who earn less than $4,500 per
  339  quarter; and
  340         4. An 8 percent credit against the corporate income tax.
  341         (b) A qualified business is entitled to accrue, receive,
  342  and claim the tax benefits under paragraph (a) until June 30,
  343  2016.
  344         (2) A qualified business becomes ineligible to accrue the
  345  tax benefits under this section in the month that it no longer
  346  satisfies the criteria in subsection (2) of section 6 of this
  347  act.
  348         (3) The Department of Revenue shall adopt rules to
  349  administer this section.
  350         Section 8. Enterprise program zone assistance funds.—
  351         (1) Each enterprise program zone development corporation
  352  shall create an enterprise program zone assistance fund. The
  353  fund shall be funded using the incremental sales tax collected
  354  within each enterprise program zone to the extent that those
  355  revenues exceed the amount of sales and tax revenue generated in
  356  an enterprise program zone during the 2011-2012 state fiscal
  357  year. The Department of Revenue, counties, and municipalities
  358  shall pay the tax revenues to the respective enterprise program
  359  zone development corporations by the end of the month following
  360  the month in which incremental revenues were collected by the
  361  Department of Revenue or received by the county or municipality.
  362  Those payments shall be reported by the Department of Revenue
  363  and each county and municipality to the authority within 10 days
  364  after those payments have been made.
  365         (2) Funds from an enterprise program zone assistance fund
  366  may be used for urban improvement projects or other development
  367  programs within an enterprise program zone. The authority must
  368  approve each project before it may be funded from an assistance
  369  fund.
  370         (3) Each enterprise program zone development corporation
  371  must annually account for the collection and allocation or
  372  expenditure of funds from an assistance fund and provide a
  373  report of its accounting to the authority. The authority must
  374  certify annually to the Chief Financial Officer the amount of
  375  approved expenditures on urban improvement projects from each
  376  assistance fund.
  377         Section 9. Review of enterprise program zones.—Before the
  378  2021 Regular Session of the Legislature, the Office of Program
  379  Policy Analysis and Government Accountability shall review and
  380  evaluate the effectiveness of each enterprise program zone using
  381  the annual reports prepared by the authority and each enterprise
  382  program zone development corporation. The office shall evaluate
  383  whether the enterprise program zone benefits caused new
  384  investment and development; increased the number of jobs created
  385  or retained; caused the renovation, rehabilitation, restoration,
  386  improvement, or new construction of businesses or housing; or
  387  contributed to the economic viability and profitability of
  388  business and commerce. The office shall submit a report of its
  389  findings and recommendations to the President of the Senate and
  390  the Speaker of the House of Representatives by January 15, 2021.
  391         Section 10. This act expires June 30, 2021.
  392         Section 11. This act shall take effect July 1, 2011.