CS/CS/HB 879

A bill to be entitled
2An act relating to targeted economic development; amending
3s. 288.106, F.S.; redefining the term "target industry
4business" to revise the eligibility criteria for the tax
5refund program for target industry businesses; requiring
6certain local governing boards to notify the Office of
7Tourism, Trade, and Economic Development and Enterprise
8Florida, Inc., of the average private-sector wage
9calculation to be used for purposes of a business's wage
10commitment under the tax refund program; amending s.
11377.809, F.S.; deleting an obsolete provision; revising
12the date by which the Department of Community Affairs must
13submit a report to the Governor and Legislature which
14evaluates the success of the Energy Economic Zone Pilot
15Program; requiring that all incentives and benefits
16provided for enterprise zones be made available to energy
17economic zones by a specified date; assigning duties for
18the administration of energy economic zones to the local
19governing bodies that have jurisdiction over such zones;
20providing for boundaries of the zones, eligibility
21criteria for the incentives, and benefits provided in the
22zones; specifying the incentives and benefits available in
23the zones; requiring that the applicable requirements for
24employee residency for higher refund or credit thresholds
25be based on employee residency in the energy economic zone
26or an enterprise zone; establishing priorities for funding
27certain projects; limiting the annual amount of such
28incentives; authorizing the carryforward of any unused
29amount of incentives for a specified period; providing for
30the issuance of certificates to eligible businesses;
31requiring the local governing body to certify to the
32Department of Revenue or the Office of Tourism, Trade, and
33Economic Development which businesses or properties are
34eligible for the incentives; requiring the Department of
35Revenue to send written instructions to eligible
36businesses on claiming the credit on a sales and use tax
37return initiated through an electronic data interchange;
38authorizing the Office of Tourism, Trade, and Economic
39Development and the Department of Revenue to adopt
40emergency rules; providing for renewal of the rules;
41amending s. 380.06, F.S.; exempting certain developments
42in an energy economic zone from review as a development of
43regional impact; providing an effective date.
45Be It Enacted by the Legislature of the State of Florida:
47     Section 1.  Paragraph (t) of subsection (2) and paragraph
48(b) of subsection (4) of section 288.106, Florida Statutes, are
49amended to read:
50     288.106  Tax refund program for qualified target industry
52     (2)  DEFINITIONS.-As used in this section:
53     (t)  "Target industry business" means a corporate
54headquarters business or any business that is engaged in one of
55the target industries identified pursuant to the following
56criteria developed by the office in consultation with Enterprise
57Florida, Inc.:
58     1.  Future growth.-Industry forecasts should indicate
59strong expectation for future growth in both employment and
60output, according to the most recent available data. Special
61consideration should be given to businesses that export goods
62to, or provide services in, international markets and businesses
63that replace domestic and international imports of goods or
65     2.  Stability.-The industry should not be subject to
66periodic layoffs, whether due to seasonality or sensitivity to
67volatile economic variables such as weather. The industry should
68also be relatively resistant to recession, so that the demand
69for products of this industry is not typically subject to
70decline during an economic downturn.
71     3.  High wage.-The industry should pay relatively high
72wages compared to statewide or area averages.
73     4.  Market and resource independent.-The location of
74industry businesses should not be dependent on Florida markets
75or resources as indicated by industry analysis, except for
76businesses in the renewable energy industry.
77     5.  Industrial base diversification and strengthening.-The
78industry should contribute toward expanding or diversifying the
79state's or area's economic base, as indicated by analysis of
80employment and output shares compared to national and regional
81trends. Special consideration should be given to industries that
82strengthen regional economies by adding value to basic products
83or building regional industrial clusters as indicated by
84industry analysis. Special consideration should also be given to
85the development of strong industrial clusters that include
86defense and homeland security businesses.
87     6.  Positive economic impact benefits.-The industry is
88expected to have strong positive impacts on or benefits to the
89state or regional economies. Special consideration should be
90given to industries that facilitate the development of the state
91as a hub for domestic and global trade and logistics.
93The term does not include any business engaged in retail
94industry activities; any electrical utility company; any
95phosphate or other solid minerals severance, mining, or
96processing operation; any oil or gas exploration or production
97operation; or any business subject to regulation by the Division
98of Hotels and Restaurants of the Department of Business and
99Professional Regulation. Any business within NAICS code 5611 or
1005614, office administrative services and business support
101services, respectively, may be considered a target industry
102business only after the local governing body and Enterprise
103Florida, Inc., make a determination that the community where the
104business may locate has conditions affecting the fiscal and
105economic viability of the local community or area, including but
106not limited to, factors such as low per capita income, high
107unemployment, high underemployment, and a lack of year-round
108stable employment opportunities, and such conditions may be
109improved by the location of such a business to the community. By
110January 1 of every 3rd year, beginning January 1, 2011, the
111office, in consultation with Enterprise Florida, Inc., economic
112development organizations, the State University System, local
113governments, employee and employer organizations, market
114analysts, and economists, shall review and, as appropriate,
115revise the list of such target industries and submit the list to
116the Governor, the President of the Senate, and the Speaker of
117the House of Representatives.
119     (b)  To qualify for review by the office, the application
120of a target industry business must, at a minimum, establish the
121following to the satisfaction of the office:
122     1.a.  The jobs proposed to be created under the
123application, pursuant to subparagraph (a)4., must pay an
124estimated annual average wage equaling at least 115 percent of
125the average private sector wage in the area where the business
126is to be located or the statewide private sector average wage.
127The governing board of the local governmental entity providing
128the local financial support county where the qualified target
129industry business is to be located shall notify the office and
130Enterprise Florida, Inc., which calculation of the average
131private sector wage in the area must be used as the basis for
132the business's wage commitment. In determining the average
133annual wage, the office shall include only new proposed jobs,
134and wages for existing jobs shall be excluded from this
136     b.  The office may waive the average wage requirement at
137the request of the local governing body recommending the project
138and Enterprise Florida, Inc. The office may waive the wage
139requirement for a project located in a brownfield area
140designated under s. 376.80, in a rural city, in a rural
141community, in an enterprise zone, or for a manufacturing project
142at any location in the state if the jobs proposed to be created
143pay an estimated annual average wage equaling at least 100
144percent of the average private sector wage in the area where the
145business is to be located, only if the merits of the individual
146project or the specific circumstances in the community in
147relationship to the project warrant such action. If the local
148governing body and Enterprise Florida, Inc., make such a
149recommendation, it must be transmitted in writing, and the
150specific justification for the waiver recommendation must be
151explained. If the office elects to waive the wage requirement,
152the waiver must be stated in writing, and the reasons for
153granting the waiver must be explained.
154     2.  The target industry business's project must result in
155the creation of at least 10 jobs at the project and, in the case
156of an expansion of an existing business, must result in a net
157increase in employment of at least 10 percent at the business.
158At the request of the local governing body recommending the
159project and Enterprise Florida, Inc., the office may waive this
160requirement for a business in a rural community or enterprise
161zone if the merits of the individual project or the specific
162circumstances in the community in relationship to the project
163warrant such action. If the local governing body and Enterprise
164Florida, Inc., make such a request, the request must be
165transmitted in writing, and the specific justification for the
166request must be explained. If the office elects to grant the
167request, the grant must be stated in writing, and the reason for
168granting the request must be explained.
169     3.  The business activity or product for the applicant's
170project must be within an industry identified by the office as a
171target industry business that contributes to the economic growth
172of the state and the area in which the business is located, that
173produces a higher standard of living for residents of this state
174in the new global economy, or that can be shown to make an
175equivalent contribution to the area's and state's economic
177     Section 2.  Subsection (4) of section 377.809, Florida
178Statutes, is amended, and subsection (5) is added to that
179section, to read:
180     377.809  Energy Economic Zone Pilot Program.-
181     (4)  If the pilot project is ongoing, The Department of
182Community Affairs, with the assistance of the Office of Tourism,
183Trade, and Economic Development, shall submit a report to the
184Governor, the President of the Senate, and the Speaker of the
185House of Representatives by February 15, 2015 2012, evaluating
186whether the pilot program has demonstrated success. The report
187shall contain recommendations with regard to whether the program
188should be expanded for use by other local governments and
189whether state policies should be revised to encourage the goals
190of the program.
191     (5)(a)  Beginning July 1, 2012, all the incentives and
192benefits provided for enterprise zones pursuant to state law
193shall be available to the energy economic zones designated
194pursuant to this section on or before July 1, 2010. In order to
195provide incentives, by March 1, 2012, each local governing body
196that has jurisdiction over an energy economic zone must, by
197local ordinance, establish the boundary of the energy economic
198zone, specify applicable energy-efficiency standards, and
199determine eligibility criteria for the application of state and
200local incentives and benefits in the energy economic zone.
201However, in order to receive benefits provided under s. 288.106,
202a business must be a qualified target industry business under s.
203288.106 for state purposes. An energy economic zone's boundary
204may be revised by local ordinance. Such incentives and benefits
205include those in ss. 212.08, 212.096, 220.181, 220.182, 220.183,
206288.106, and 624.5105 and the public utility discounts provided
207in s. 290.007(8). The exemption provided in s. 212.08(5)(c)
208shall be for renewable energy as defined in s. 377.803. For
209purposes of this section, any applicable requirements for
210employee residency for higher refund or credit thresholds must
211be based on employee residency in the energy economic zone or an
212enterprise zone. A business in an energy economic zone may also
213be eligible for funding under ss. 288.047 and 445.003, and a
214transportation project in an energy economic zone shall be
215provided priority in funding under s. 288.063. Other projects
216shall be given priority ranking to the extent practicable for
217grants administered under state energy programs.
218     (b)  Effective July 1, 2012, the total amount of state
219credits, refunds, and exemptions that may be provided by the
220governing body of each energy economic zone to eligible
221businesses for energy-economic-zone incentives pursuant to
222paragraph (a) is $300,000 per designated energy economic zone in
223any state fiscal year. The governing body of an energy economic
224zone shall disallow a credit or refund for which an application
225is submitted after the zone's respective $300,000 limit is
226reached. If the $300,000 incentive cap is not fully used in any
227one state fiscal year by an energy economic zone, the unused
228amount under the cap may be carried forward for up to 5 years.
229The local governing body that has jurisdiction over the energy
230economic zone is responsible for allocating the incentives, for
231verifying that businesses receiving such incentives are eligible
232for the incentives provided, and for ensuring that the
233incentives provided do not exceed the cap for the state fiscal
235     (c)  Upon approving an incentive for an eligible business,
236the governing body that has jurisdiction over the energy
237economic zone shall provide the taxpayer with a certificate
238indicating the name and federal identification number of the
239eligible business, the date the incentive is provided, the name
240of the energy economic zone, the incentive type, and the
241incentive amount. The local governing body shall certify to the
242Department of Revenue or the Office of Tourism, Trade, and
243Economic Development, whichever is applicable, which businesses
244or properties are eligible to receive any or all of the state
245incentives according to their statutory requirements. The
246governing body that has jurisdiction over the energy economic
247zone shall provide a copy of the certificate to the Department
248of Revenue and the Office of Tourism, Trade, and Economic
249Development as notification that such incentives were approved
250for the specific eligible business or property. For incentives
251to be claimed against the sales and use tax under chapter 212,
252the Department of Revenue shall send, within 14 days after
253receipt, written instructions to an eligible business on how to
254claim the credit on a sales and use tax return initiated through
255an electronic data interchange. Any credit against the sales and
256use tax shall be deducted from any sales and use tax remitted by
257the dealer to the Department of Revenue by electronic funds
258transfer and may be deducted only on a sales and use tax return
259initiated through an electronic data interchange. The dealer
260shall separately state the credit on the electronic return. The
261net amount of tax due and payable must be remitted by electronic
262funds transfer. If the credit exceeds the amount owed on the
263sales and use tax return, such excess amount may be carried
264forward for a period not to exceed 12 months after the date that
265the credit is initially claimed.
266     (d)  If all conditions are deemed met, the Office of
267Tourism, Trade, and Economic Development and the Department of
268Revenue may adopt emergency rules pursuant to ss. 120.536(1) and
269120.54 to administer the provisions of this subsection. The
270emergency rules shall remain in effect for 6 months after the
271rules are adopted, and the rules may be renewed while the
272procedures to adopt permanent rules addressing the subject of
273the emergency rules are pending.
274     Section 3.  Paragraph (u) is added to subsection (24) of
275section 380.06, Florida Statutes, to read:
276     380.06  Developments of regional impact.-
278     (u)  Any development in an energy economic zone designated
279pursuant to s. 377.809 is exempt from this section upon approval
280by its local governing body.
282If a use is exempt from review as a development of regional
283impact under paragraphs (a)-(s), but will be part of a larger
284project that is subject to review as a development of regional
285impact, the impact of the exempt use must be included in the
286review of the larger project, unless such exempt use involves a
287development of regional impact that includes a landowner,
288tenant, or user that has entered into a funding agreement with
289the Office of Tourism, Trade, and Economic Development under the
290Innovation Incentive Program and the agreement contemplates a
291state award of at least $50 million.
292     Section 4.  This act shall take effect July 1, 2011.

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