Florida Senate - 2013                        COMMITTEE AMENDMENT
       Bill No. SB 406
                                Barcode 341958                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/15/2013           .                                

       Appropriations Subcommittee on Transportation, Tourism, and
       Economic Development (Sobel) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Delete lines 329 - 366
    4  and insert:
    5         Section 6. Present subsections (2) and (3) of section
    6  288.061, Florida Statutes, are renumbered as subsections (3) and
    7  (4), respectively, and a new subsection (2) and subsection (5)
    8  are added to that section, to read:
    9         288.061 Economic development incentive application
   10  process.—
   11         (2) Beginning July 1, 2013, the department shall review and
   12  evaluate each economic development incentive application for the
   13  economic benefits of the proposed award of state incentives
   14  proposed for the project. The term “economic benefits” has the
   15  same meaning as in s. 288.005. The Office of Economic and
   16  Demographic Research shall review and evaluate the methodology
   17  and model used to calculate the economic benefits. For purposes
   18  of this requirement, an amended definition of economic benefits
   19  may be developed in conjunction with the Office of Economic and
   20  Demographic Research. The Office of Economic and Demographic
   21  Research shall report on the methodology and model by September
   22  1, 2013, and every third year thereafter, to the President of
   23  the Senate and the Speaker of the House of Representatives.
   24         (5)(a) The executive director may not approve an economic
   25  development incentive application unless the application
   26  includes a signed written declaration by the applicant which
   27  states that the applicant has read the information in the
   28  application and that the information is true, correct, and
   29  complete to the best of the applicant’s knowledge and belief.
   30         (b) After an economic development incentive application is
   31  approved, the awardee shall provide, in each year that the
   32  department is required to validate contractor performance, a
   33  signed written declaration. The written declaration must state
   34  that the awardee has reviewed the information and that the
   35  information is true, correct, and complete to the best of the
   36  awardee’s knowledge and belief.
   37         Section 7. Subsection (8) of section 288.0656, Florida
   38  Statutes, is amended to read:
   39         288.0656 Rural Economic Development Initiative.—
   40         (8) REDI shall submit a report to the Governor, the
   41  President of the Senate, and the Speaker of the House of
   42  Representatives each year on or before September 1 on all REDI
   43  activities for the prior fiscal year as a supplement to the
   44  annual report required under s. 20.60. This report must shall
   45  include a status report on all projects currently being
   46  coordinated through REDI, the number of preferential awards and
   47  allowances made pursuant to this section, the dollar amount of
   48  such awards, and the names of the recipients. The report must
   49  shall also include a description of all waivers of program
   50  requirements granted. The report must shall also include
   51  information as to the economic impact of the projects
   52  coordinated by REDI, and recommendations based on the review and
   53  evaluation of statutes and rules having an adverse impact on
   54  rural communities, and proposals to mitigate such adverse
   55  impacts.
   56         Section 8. Section 288.076, Florida Statutes, is created to
   57  read:
   58         288.076Return on investment reporting for economic
   59  development programs.—
   60         (1) As used in this section, the term:
   61         (a) “Jobs” has the same meaning as provided in s. 288.106.
   62         (b) “Participant business” means an employing unit, as
   63  defined in s. 443.036, that has entered into an agreement with
   64  the department to receive a state investment.
   65         (c) “Project” has the same meaning as provided in s.
   66  288.106.
   67         (d) “Project award date” means the date a participant
   68  business enters into an agreement with the department to receive
   69  a state investment.
   70         (e) “State investment” means any state grants, tax
   71  exemptions, tax refunds, tax credits, or other state incentives
   72  provided to a business under a program administered by the
   73  department, including the capital investment tax credit under s.
   74  220.191.
   75         (2) The department shall maintain a website for the purpose
   76  of publishing the information described in this section. The
   77  information required to be published under this section must be
   78  provided in a format accessible to the public which enables
   79  users to search for and sort specific data and to easily view
   80  and retrieve all data at once.
   81         (3) Within 48 hours after expiration of the period of
   82  confidentiality for project information deemed confidential and
   83  exempt pursuant to s. 288.075, the department shall publish the
   84  following information pertaining to each project:
   85         (a) Projected economic benefits.—The projected economic
   86  benefits at the time of the initial project award date.
   87         (b) Project information.
   88         1. The program or programs through which state investment
   89  is being made.
   90         2. The maximum potential cumulative state investment in the
   91  project.
   92         3. The target industry or industries, and any high impact
   93  sectors implicated by the project.
   94         4. The county or counties that will be impacted by the
   95  project.
   96         5. The total cumulative local financial commitment and in
   97  kind support for the project.
   98         (c) Participant business information.
   99         1. The location of the headquarters of the participant
  100  business or, if a subsidiary, the headquarters of the parent
  101  company.
  102         2. The firm size class of the participant business, or
  103  where owned by a parent company the firm size class of the
  104  participant business’s parent company, using the firm size
  105  classes established by the United States Department of Labor
  106  Bureau of Labor Statistics, and whether the participant business
  107  qualifies as a small business as defined in s. 288.703.
  108         3. The date of the project award.
  109         4. The expected duration of the contract.
  110         5. The anticipated dates when the participant business will
  111  claim the last state investment.
  112         (d) Project evaluation criteria.
  113         1. Economic benefits generated by the project.
  114         2. The net indirect and induced incremental jobs to be
  115  generated by the project.
  116         3. The net indirect and induced incremental capital
  117  investment to be generated by the project.
  118         4. The net indirect and induced incremental tax revenue
  119  paid to the state to be generated by the project.
  120         (e) Project performance goals.
  121         1. The incremental direct jobs attributable to the project,
  122  identifying the number of jobs generated and the number of jobs
  123  retained.
  124         2. The number of jobs generated and the number of jobs
  125  retained by the project, and for projects commencing after
  126  October 1, 2013, the median annual wage of persons holding such
  127  jobs.
  128         3. The incremental direct capital investment in the state
  129  generated by the project.
  130         4. The incremental projected tax revenue to the state paid
  131  by the participant business for the project.
  132         (f) Total state investment to date.—The total amount of
  133  state investment disbursed to the participant business to date
  134  under the terms of the contract, itemized by incentive program.
  135         (4) The department shall use methodology and formulas
  136  established by the Office of Economic and Demographic Research
  137  to calculate the economic benefits of each project. The
  138  department shall calculate and publish on its website the
  139  economic benefits of each project within 48 hours after the
  140  conclusion of the agreement between each participant business
  141  and the department. The Office of Economic and Demographic
  142  Research shall provide a description of the methodology and
  143  formulas used to calculate the economic benefits of a project to
  144  the department, and the department must publish the information
  145  on its website within 48 hours after receiving such information.
  146         (5) At least annually, from the project award date, the
  147  department shall:
  148         (a) Publish verified results to update the information
  149  described in paragraphs (3)(b)-(f) to accurately reflect any
  150  changes in the published information since the project award
  151  date.
  152         (b) Publish on its website the date on which the
  153  information collected and published for each project was last
  154  updated.
  155         (6) Annually, the department shall publish information
  156  relating to the progress of Quick Action Closing Fund projects,
  157  including the average number of days between the date the
  158  department receives a completed application and the date on
  159  which the application is approved.
  160         (7) The department shall publish the following documents at
  161  the times specified herein:
  162         (a) Within 48 hours after expiration of the period of
  163  confidentiality provided under s. 288.075, the department shall
  164  publish the contract or agreement described in s. 288.061. The
  165  contract or agreement must be redacted to protect the
  166  participant business from disclosure of information that remains
  167  confidential or exempt by law.
  168         (b) Within 48 hours after submitting any report of findings
  169  and recommendations made pursuant to s. 288.106(7)(d) concerning
  170  a business’s failure to complete a tax refund agreement pursuant
  171  to the tax refund program for qualified target industry
  172  businesses, the department shall publish such report.
  173         (8) For projects completed before October 1, 2013, the
  174  department shall compile and, by October 1, 2014, shall publish
  175  the information described in subsections (3), (4), and (5), to
  176  the extent such information is available and applicable.
  177         (9) The provisions of this section that restrict the
  178  department’s publication of information are intended only to
  179  limit the information that the department may publish on its
  180  website and shall not be construed to create an exemption from
  181  public records requirements under s. 119.07(1) or s. 24(a), Art.
  182  I of the State Constitution.
  183         (10) The department may adopt rules to administer this
  184  section.
  186  ================= T I T L E  A M E N D M E N T ================
  187         And the title is amended as follows:
  188         Delete lines 37 - 41
  189  and insert:
  190         incentive application; prohibiting the executive
  191         director from approving an economic development
  192         incentive application unless a specified written
  193         declaration is received; amending s. 288.0656, F.S.;
  194         requiring the Rural Economic Development Initiative to
  195         submit a report to supplement the Department of
  196         Economic Opportunity’s annual report; deleting certain
  197         reporting requirements; creating s. 288.076, F.S.;
  198         providing definitions; requiring the department to
  199         publish on a website specified information concerning
  200         state investment in economic development programs;
  201         requiring the department to use methodology and
  202         formulas established by the Office of Economic and
  203         Demographic Research for specified calculations;
  204         requiring the Office of Economic and Demographic
  205         Research to provide a description of specified
  206         methodology and formulas to the department and
  207         requiring the department to publish this description
  208         on its website within a specified period; providing
  209         procedures and requirements for reviewing, updating,
  210         and supplementing specified published information;
  211         requiring the department to annually publish
  212         information relating to the progress of Quick Action
  213         Closing Fund projects; requiring the department to
  214         publish certain confidential information pertaining to
  215         participant businesses upon expiration of a specified
  216         confidentiality period; requiring the department to
  217         publish certain reports concerning businesses that
  218         fail to complete tax refund agreements under the tax
  219         refund program for qualified target industry
  220         businesses; providing for construction and legislative
  221         intent; authorizing the department to adopt rules;
  222         repealing s. 288.095(3)(c),