CS/HB 879

A bill to be entitled
2An act relating to the tax refund program for qualified
3target industry businesses; amending s. 288.106, F.S.;
4revising definition of the term "target industry
5business"; revising the eligibility criteria for tax
6refunds under the program; requiring certain local
7governing boards to notify the Office of Tourism, Trade,
8and Economic Development and Enterprise Florida, Inc., of
9the average private-sector wage calculation to be used for
10purposes of a business's wage commitment under the tax
11refund program; providing an effective date.
13Be It Enacted by the Legislature of the State of Florida:
15     Section 1.  Paragraph (t) of subsection (2) and paragraph
16(b) of subsection (4) of section 288.106, Florida Statutes, are
17amended to read:
18     288.106  Tax refund program for qualified target industry
20     (2)  DEFINITIONS.-As used in this section:
21     (t)  "Target industry business" means a corporate
22headquarters business or any business that is engaged in one of
23the target industries identified pursuant to the following
24criteria developed by the office in consultation with Enterprise
25Florida, Inc.:
26     1.  Future growth.-Industry forecasts should indicate
27strong expectation for future growth in both employment and
28output, according to the most recent available data. Special
29consideration should be given to businesses that export goods
30to, or provide services in, international markets and businesses
31that replace domestic and international imports of goods or
33     2.  Stability.-The industry should not be subject to
34periodic layoffs, whether due to seasonality or sensitivity to
35volatile economic variables such as weather. The industry should
36also be relatively resistant to recession, so that the demand
37for products of this industry is not typically subject to
38decline during an economic downturn.
39     3.  High wage.-The industry should pay relatively high
40wages compared to statewide or area averages.
41     4.  Market and resource independent.-The location of
42industry businesses should not be dependent on Florida markets
43or resources as indicated by industry analysis, except for
44businesses in the renewable energy industry.
45     5.  Industrial base diversification and strengthening.-The
46industry should contribute toward expanding or diversifying the
47state's or area's economic base, as indicated by analysis of
48employment and output shares compared to national and regional
49trends. Special consideration should be given to industries that
50strengthen regional economies by adding value to basic products
51or building regional industrial clusters as indicated by
52industry analysis. Special consideration should also be given to
53the development of strong industrial clusters that include
54defense and homeland security businesses.
55     6.  Economic benefits.-The industry is expected to have
56strong positive impacts on or benefits to the state or regional
58     7.  Enhance trade.-The industry should facilitate the
59growth and development of domestic and international trade and
60logistics. Special consideration should be given to industries
61that strengthen the state's position as a global trade and
62logistics hub.
64The term does not include any business engaged in retail
65industry activities; any electrical utility company; any
66phosphate or other solid minerals severance, mining, or
67processing operation; any oil or gas exploration or production
68operation; or any business subject to regulation by the Division
69of Hotels and Restaurants of the Department of Business and
70Professional Regulation. Any business within NAICS code 5611 or
715614, office administrative services and business support
72services, respectively, may be considered a target industry
73business only after the local governing body and Enterprise
74Florida, Inc., make a determination that the community where the
75business may locate has conditions affecting the fiscal and
76economic viability of the local community or area, including but
77not limited to, factors such as low per capita income, high
78unemployment, high underemployment, and a lack of year-round
79stable employment opportunities, and such conditions may be
80improved by the location of such a business to the community. By
81January 1 of every 3rd year, beginning January 1, 2011, the
82office, in consultation with Enterprise Florida, Inc., economic
83development organizations, the State University System, local
84governments, employee and employer organizations, market
85analysts, and economists, shall review and, as appropriate,
86revise the list of such target industries and submit the list to
87the Governor, the President of the Senate, and the Speaker of
88the House of Representatives.
90     (b)  To qualify for review by the office, the application
91of a target industry business must, at a minimum, establish the
92following to the satisfaction of the office:
93     1.a.  The jobs proposed to be created under the
94application, pursuant to subparagraph (a)4., must pay an
95estimated annual average wage equaling at least 115 percent of
96the average private sector wage in the area where the business
97is to be located or the statewide private sector average wage.
98The governing board of the local governmental entity providing
99the local financial support county where the qualified target
100industry business is to be located shall notify the office and
101Enterprise Florida, Inc., which calculation of the average
102private sector wage in the area must be used as the basis for
103the business's wage commitment. In determining the average
104annual wage, the office shall include only new proposed jobs,
105and wages for existing jobs shall be excluded from this
107     b.  The office may waive the average wage requirement at
108the request of the local governing body recommending the project
109and Enterprise Florida, Inc. The office may waive the wage
110requirement for a project located in a brownfield area
111designated under s. 376.80, in a rural city, in a rural
112community, in an enterprise zone, or for a manufacturing project
113at any location in the state if the jobs proposed to be created
114pay an estimated annual average wage equaling at least 100
115percent of the average private sector wage in the area where the
116business is to be located, only if the merits of the individual
117project or the specific circumstances in the community in
118relationship to the project warrant such action. If the local
119governing body and Enterprise Florida, Inc., make such a
120recommendation, it must be transmitted in writing, and the
121specific justification for the waiver recommendation must be
122explained. If the office elects to waive the wage requirement,
123the waiver must be stated in writing, and the reasons for
124granting the waiver must be explained.
125     2.  The target industry business's project must result in
126the creation of at least 10 jobs at the project and, in the case
127of an expansion of an existing business, must result in a net
128increase in employment of at least 10 percent at the business.
129At the request of the local governing body recommending the
130project and Enterprise Florida, Inc., the office may waive this
131requirement for a business in a rural community or enterprise
132zone if the merits of the individual project or the specific
133circumstances in the community in relationship to the project
134warrant such action. If the local governing body and Enterprise
135Florida, Inc., make such a request, the request must be
136transmitted in writing, and the specific justification for the
137request must be explained. If the office elects to grant the
138request, the grant must be stated in writing, and the reason for
139granting the request must be explained.
140     3.  The business activity or product for the applicant's
141project must be within an industry identified by the office as a
142target industry business that contributes to the economic growth
143of the state and the area in which the business is located, that
144produces a higher standard of living for residents of this state
145in the new global economy, or that can be shown to make an
146equivalent contribution to the area's and state's economic
148     Section 2.  This act shall take effect July 1, 2011.

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