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.