Bill Text: FL S0544 | 2010 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Brownfield Development [EPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2010-04-30 - Died in Committee on Finance and Tax, companion bill(s) passed, see CS/CS/CS/SB 550 (Ch. 2010-205) [S0544 Detail]

Download: Florida-2010-S0544-Comm_Sub.html

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Florida Senate - 2010                              CS for SB 544 
 
By the Committee on Environmental Preservation and Conservation; 
and Senator Constantine 
592-03551-10                                           2010544c1 
1                        A bill to be entitled 
2         An act relating to brownfield development; amending s. 
3         212.08, F.S.; expanding the definition of the term 
4         “mixed-use project” for purposes of a tax exemption 
5         applicable to building materials; amending s. 
6         220.1845, F.S.; providing requirements for claiming 
7         certain site rehabilitation costs in an application 
8         for a contaminated site rehabilitation tax credit; 
9         amending s. 288.107, F.S.; redefining the term 
10         “eligible business” to revise the criteria under which 
11         a business is eligible to receive a bonus refund for a 
12         brownfield redevelopment project; amending s. 
13         376.30781, F.S.; providing requirements for claiming 
14         certain site rehabilitation costs in an application 
15         for a contaminated site rehabilitation tax credit; 
16         amending s. 376.85, F.S.; specifying additional 
17         requirements for the Department of Environmental 
18         Protection in its annual report to the Legislature 
19         regarding site rehabilitation; amending s. 403.1835, 
20         F.S.; specifying criteria for prioritizing certain 
21         brownfield site projects that eliminate public health 
22         hazards; providing an effective date. 
23 
24  Be It Enacted by the Legislature of the State of Florida: 
25 
26         Section 1. Paragraph (o) of subsection (5) of section 
27  212.08, Florida Statutes, is amended to read: 
28         212.08 Sales, rental, use, consumption, distribution, and 
29  storage tax; specified exemptions.—The sale at retail, the 
30  rental, the use, the consumption, the distribution, and the 
31  storage to be used or consumed in this state of the following 
32  are hereby specifically exempt from the tax imposed by this 
33  chapter. 
34         (5) EXEMPTIONS; ACCOUNT OF USE.— 
35         (o) Building materials in redevelopment projects.— 
36         1. As used in this paragraph, the term: 
37         a. “Building materials” means tangible personal property 
38  that becomes a component part of a housing project or a mixed 
39  use project. 
40         b. “Housing project” means the conversion of an existing 
41  manufacturing or industrial building to housing units in an 
42  urban high-crime area, enterprise zone, empowerment zone, Front 
43  Porch Community, designated brownfield area, or urban infill 
44  area and in which the developer agrees to set aside at least 20 
45  percent of the housing units in the project for low-income and 
46  moderate-income persons or the construction in a designated 
47  brownfield area of affordable housing for persons described in 
48  s. 420.0004(8), (10), (11), or (15) or in s. 159.603(7). 
49         c. “Mixed-use project” means the conversion of an existing 
50  manufacturing or industrial building to mixed-use units that 
51  include artists’ studios, art and entertainment services, or 
52  other compatible uses. A mixed-use project must be located in an 
53  urban high-crime area, enterprise zone, empowerment zone, Front 
54  Porch Community, designated brownfield area, or urban infill 
55  area, and the developer must agree to set aside at least 20 
56  percent of the square footage of the project for low-income and 
57  moderate-income housing. Notwithstanding this sub-subparagraph, 
58  a mixed-use project may also mean the construction in a 
59  designated brownfield area of mixed-use units that include 
60  residential, commercial, or other compatible or permitted uses. 
61         d. “Substantially completed” has the same meaning as 
62  provided in s. 192.042(1). 
63         2. Building materials used in the construction of a housing 
64  project or mixed-use project are exempt from the tax imposed by 
65  this chapter upon an affirmative showing to the satisfaction of 
66  the department that the requirements of this paragraph have been 
67  met. This exemption inures to the owner through a refund of 
68  previously paid taxes. To receive this refund, the owner must 
69  file an application under oath with the department which 
70  includes: 
71         a. The name and address of the owner. 
72         b. The address and assessment roll parcel number of the 
73  project for which a refund is sought. 
74         c. A copy of the building permit issued for the project. 
75         d. A certification by the local building code inspector 
76  that the project is substantially completed. 
77         e. A sworn statement, under penalty of perjury, from the 
78  general contractor licensed in this state with whom the owner 
79  contracted to construct the project, which statement lists the 
80  building materials used in the construction of the project and 
81  the actual cost thereof, and the amount of sales tax paid on 
82  these materials. If a general contractor was not used, the owner 
83  shall provide this information in a sworn statement, under 
84  penalty of perjury. Copies of invoices evidencing payment of 
85  sales tax must be attached to the sworn statement. 
86         3. An application for a refund under this paragraph must be 
87  submitted to the department within 6 months after the date the 
88  project is deemed to be substantially completed by the local 
89  building code inspector. Within 30 working days after receipt of 
90  the application, the department shall determine if it meets the 
91  requirements of this paragraph. A refund approved pursuant to 
92  this paragraph shall be made within 30 days after formal 
93  approval of the application by the department. 
94         4. The department shall establish by rule an application 
95  form and criteria for establishing eligibility for exemption 
96  under this paragraph. 
97         5. The exemption shall apply to purchases of materials on 
98  or after July 1, 2000. 
99         Section 2. Paragraph (l) is added to subsection (1) of 
100  section 220.1845, Florida Statutes, to read: 
101         220.1845 Contaminated site rehabilitation tax credit.— 
102         (1) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.— 
103         (l) A site rehabilitation application must be received by 
104  the Division of Waste Management of the Department of 
105  Environmental Protection by January 31 of the year after the 
106  calendar year for which site rehabilitation costs are being 
107  claimed in a tax credit application. All site rehabilitation 
108  costs claimed must have been for work conducted between January 
109  1 and December 31 of the year for which the application is being 
110  submitted. All payment requests must have been received and all 
111  costs must have been paid prior to submittal of the tax credit 
112  application, but no later than January 31 of the year after the 
113  calendar year for which site rehabilitation costs are being 
114  claimed. 
115         Section 3. Paragraph (e) of subsection (1) and paragraphs 
116  (a) and (b) of subsection (3) of section 288.107, Florida 
117  Statutes, are amended to read: 
118         288.107 Brownfield redevelopment bonus refunds.— 
119         (1) DEFINITIONS.—As used in this section: 
120         (e) “Eligible business” means: 
121         1. A qualified target industry business as defined in s. 
122  288.106(1)(o); or 
123         2. A business that can demonstrate a fixed capital 
124  investment of at least $2 million in brownfield areas, including 
125  mixed-use business activities, including multiunit housing, 
126  commercial, retail, and industrial activities, or a business 
127  that demonstrates a fixed capital investment of at least 
128  $500,000 and creates between 5 and 50 jobs in mixed-use 
129  business, multiunit housing, commercial, retail, or industrial 
130  activities in brownfield areas, or at least $500,000 in 
131  brownfield areas that do not require site cleanup, and that 
132  which provides benefits to its employees. 
133         (3) CRITERIA.—The minimum criteria for participation in the 
134  brownfield redevelopment bonus refund are: 
135         (a) The creation of at least 10 new full-time permanent 
136  jobs, except as otherwise provide in subparagraph (1)(e)2. and 
137  paragraph (b). Such jobs shall not include construction or site 
138  rehabilitation jobs associated with the implementation of a 
139  brownfield site agreement as described in s. 376.80(5). 
140         (b) The completion of a fixed capital investment of at 
141  least $2 million in brownfield areas, including mixed-use 
142  business activities, including multiunit housing, commercial, 
143  retail, and industrial activities in brownfield areas, or a 
144  business that demonstrates a fixed capital investment of at 
145  least $500,000 and creates between 5 and 50 jobs in mixed-use 
146  business, multiunit housing, commercial, retail, or industrial 
147  activities in brownfield areas, or at least $500,000 in 
148  brownfield areas that do not require site cleanup, by an 
149  eligible business applying for a refund under paragraph (2)(b), 
150  and that which provides benefits to its employees. 
151         Section 4. Subsections (5) and (6) of section 376.30781, 
152  Florida Statutes, are amended to read: 
153         376.30781 Tax credits for rehabilitation of drycleaning 
154  solvent-contaminated sites and brownfield sites in designated 
155  brownfield areas; application process; rulemaking authority; 
156  revocation authority.— 
157         (5) To claim the credit for site rehabilitation or solid 
158  waste removal, each tax credit applicant must apply to the 
159  Department of Environmental Protection for an allocation of the 
160  $2 million annual credit by filing a tax credit application with 
161  the Division of Waste Management on a form developed by the 
162  Department of Environmental Protection in cooperation with the 
163  Department of Revenue. The form shall include an affidavit from 
164  each tax credit applicant certifying that all information 
165  contained in the application, including all records of costs 
166  incurred and claimed in the tax credit application, are true and 
167  correct. If the application is submitted pursuant to 
168  subparagraph (3)(a)2., the form must include an affidavit signed 
169  by the real property owner stating that it is not, and has never 
170  been, the owner or operator of the drycleaning facility where 
171  the contamination exists. Approval of tax credits must be 
172  accomplished on a first-come, first-served basis based upon the 
173  date and time complete applications are received by the Division 
174  of Waste Management, subject to the limitations of subsection 
175  (14). To be eligible for a tax credit, the tax credit applicant 
176  must: 
177         (a) For site rehabilitation tax credits, have entered into 
178  a voluntary cleanup agreement with the Department of 
179  Environmental Protection for a drycleaning-solvent-contaminated 
180  site or a Brownfield Site Rehabilitation Agreement, as 
181  applicable, and have paid all deductibles pursuant to s. 
182  376.3078(3)(e) for eligible drycleaning-solvent-cleanup program 
183  sites, as applicable. A site rehabilitation tax credit applicant 
184  must submit only a single completed application per site for 
185  each calendar year’s site rehabilitation costs. A site 
186  rehabilitation application must be received by the Division of 
187  Waste Management of the Department of Environmental Protection 
188  by January 31 of the year after the calendar year for which site 
189  rehabilitation costs are being claimed in a tax credit 
190  application. All site rehabilitation costs claimed must have 
191  been for work conducted between January 1 and December 31 of the 
192  year for which the application is being submitted. All payment 
193  requests must have been received and all costs must have been 
194  paid prior to submittal of the tax credit application, but no 
195  later than January 31 of the year after the calendar year for 
196  which site rehabilitation costs are being claimed. 
197         (b) For solid waste removal tax credits, have entered into 
198  a brownfield site rehabilitation agreement with the Department 
199  of Environmental Protection. A solid waste removal tax credit 
200  applicant must submit only a single complete application per 
201  brownfield site, as defined in the brownfield site 
202  rehabilitation agreement, for solid waste removal costs. A solid 
203  waste removal tax credit application must be received by the 
204  Division of Waste Management of the Department of Environmental 
205  Protection subsequent to the completion of the requirements 
206  listed in paragraph (3)(e). 
207         (6) To obtain the tax credit certificate, the tax credit 
208  applicant must provide all pertinent information requested on 
209  the tax credit application form, including, at a minimum, the 
210  name and address of the tax credit applicant and the address and 
211  tracking identification number of the eligible site. Along with 
212  the tax credit application form, the tax credit applicant must 
213  submit the following: 
214         (a) A nonrefundable review fee of $250 made payable to the 
215  Water Quality Assurance Trust Fund to cover the administrative 
216  costs associated with the department’s review of the tax credit 
217  application; 
218         (b) Copies of documents that describe the goods or services 
219  and associated costs being claimed that were integral to site 
220  rehabilitation as defined in s. 376.301 or s. 376.79 or were for 
221  solid waste removal as defined in this section during the time 
222  period covered by the application. Such documents must include 
223  contractual records that describe the scope of work performed, 
224  payment requests that describe the goods or services provided, 
225  and payment records involving actual costs incurred and paid. 
226  Such documentation must be sufficient to demonstrate a link 
227  between the contractual records, the payment requests, and the 
228  payment records for the time period covered by the application; 
229         (c) Proof that the documentation submitted pursuant to 
230  paragraph (b) has been reviewed and verified by an independent 
231  certified public accountant in accordance with standards 
232  established by the American Institute of Certified Public 
233  Accountants. Specifically, a certified public accountant’s 
234  report must be submitted and the certified public accountant 
235  must attest to the accuracy and validity of the costs claimed in 
236  the application incurred and paid during the time period covered 
237  in the application by conducting an independent review of the 
238  data presented by the tax credit applicant. Accuracy and 
239  validity of costs incurred and paid shall be determined after 
240  the level of effort is certified by an appropriate professional 
241  registered in this state in each contributing technical 
242  discipline. The certified public accountant’s report must also 
243  attest that the costs included in the application form are not 
244  duplicated within the application, all payment requests were 
245  received and all costs were paid prior to submittal of the tax 
246  credit application and that, for site rehabilitation tax 
247  credits, costs claimed are for work conducted between January 1 
248  and December 31 of the year for which the application is being 
249  submitted. A copy of the accountant’s report shall be submitted 
250  to the Department of Environmental Protection in addition to the 
251  accountant’s certification form in the tax credit application; 
252  and 
253         (d) A certification form stating that activities associated 
254  with the documentation submitted pursuant to paragraph (b) have 
255  been conducted under the observation of, and related technical 
256  documents have been signed and sealed by, an appropriate 
257  professional registered in this state in each contributing 
258  technical discipline. The certification form shall be signed and 
259  sealed by the appropriate registered professionals stating that 
260  the costs incurred were integral, necessary, and required for 
261  site rehabilitation, as that term is defined in ss. 376.301 and 
262  376.79. If the scope of solid waste removal activities does not 
263  require oversight by a registered technical professional in this 
264  state, such certification form is not required as part of the 
265  tax credit application. 
266         Section 5. Section 376.85, Florida Statutes, is amended to 
267  read: 
268         376.85 Annual report.—The Department of Environmental 
269  Protection shall prepare and submit an annual report to the 
270  President of the Senate and the Speaker of the House of 
271  Representatives by August 1 of each year a report that 
272  Legislature, beginning in December 1998, which shall include, 
273  but is not be limited to, the number, size, and locations of 
274  brownfield sites: that have been remediated under the provisions 
275  of this act,; that are currently under rehabilitation pursuant 
276  to a negotiated site rehabilitation agreement with the 
277  department or a delegated local program,; where alternative 
278  cleanup target levels have been established pursuant to s. 
279  376.81(1)(g)3.,; and, where engineering and institutional 
280  control strategies are being employed as conditions of a “no 
281  further action order” to maintain the protections provided in s. 
282  376.81(1)(g)1. and 2. Based upon such information, the report 
283  shall also include recommendations or items for potential 
284  improvements to the brownfield program established under ss. 
285  376.77-376.86 in order to achieve the legislative intent and 
286  goals and objectives set forth in s. 376.78. 
287         Section 6. Subsection (7) of section 403.1835, Florida 
288  Statutes, is amended to read: 
289         403.1835 Water pollution control financial assistance.— 
290         (7) Eligible projects must be given priority according to 
291  the extent each project is intended to remove, mitigate, or 
292  prevent adverse effects on surface or ground water quality and 
293  public health. The relative costs of achieving environmental and 
294  public health benefits must be taken into consideration during 
295  the department’s assignment of project priorities. The 
296  department shall adopt a priority system by rule. In developing 
297  the priority system, the department shall give priority to 
298  projects that: 
299         (a) Eliminate public health hazards; 
300         (b) Enable compliance with laws requiring the elimination 
301  of discharges to specific water bodies, including the 
302  requirements of s. 403.086(9) regarding domestic wastewater 
303  ocean outfalls; 
304         (c) Assist in the implementation of total maximum daily 
305  loads adopted under s. 403.067; 
306         (d) Enable compliance with other pollution control 
307  requirements, including, but not limited to, toxics control, 
308  wastewater residuals management, and reduction of nutrients and 
309  bacteria; 
310         (e) Assist in the implementation of surface water 
311  improvement and management plans and pollutant load reduction 
312  goals developed under state water policy; 
313         (f) Promote reclaimed water reuse; 
314         (g) Eliminate failing onsite sewage treatment and disposal 
315  systems or those that are causing environmental damage; or 
316         (h) Reduce pollutants to and otherwise promote the 
317  restoration of Florida’s surface and ground waters. 
318 
319  Eligible projects located within a brownfield site addressed by 
320  a brownfield site rehabilitation agreement under s. 376.80 which 
321  remove, mitigate, or prevent adverse effects on surface or 
322  groundwater quality and public health shall be prioritized 
323  according to paragraphs (a)–(h). 
324         Section 7. This act shall take effect July 1, 2010.