Bill Text: FL S1752 | 2010 | Regular Session | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Economic Development [WPSC]
Spectrum: Slight Partisan Bill (Republican 9-3)
Status: (Passed) 2010-05-28 - Approved by Governor; Chapter No. 2010-147; companion bill(s) passed, see CS/HB 173 (Ch. 2010-128), CS/HB 969 (Ch. 2010-222), CS/CS/HB 1389 (Ch. 2010-226), CS/HB 7109 (Ch. 2010-136), CS/HB 7205 (Ch. 2010-140), CS/SB 1118 (Ch. 2010-208) [S1752 Detail]
Download: Florida-2010-S1752-Engrossed.html
Bill Title: Economic Development [WPSC]
Spectrum: Slight Partisan Bill (Republican 9-3)
Status: (Passed) 2010-05-28 - Approved by Governor; Chapter No. 2010-147; companion bill(s) passed, see CS/HB 173 (Ch. 2010-128), CS/HB 969 (Ch. 2010-222), CS/CS/HB 1389 (Ch. 2010-226), CS/HB 7109 (Ch. 2010-136), CS/HB 7205 (Ch. 2010-140), CS/SB 1118 (Ch. 2010-208) [S1752 Detail]
Download: Florida-2010-S1752-Engrossed.html
CS for SB 1752 First Engrossed 20101752e1 1 A bill to be entitled 2 An act relating to economic development; amending s. 3 125.045, F.S.; requiring an agency or entity that 4 receives county funds for economic development 5 purposes pursuant to a contract to submit a report on 6 the use of the funds; requiring the county to include 7 the report in its annual financial audit; requiring 8 counties to report on the provision of economic 9 development incentives to businesses to the 10 Legislative Committee on Intergovernmental Relations; 11 amending s. 159.803, F.S.; conforming a cross 12 reference to changes made by the act; amending s. 13 166.021, F.S.; requiring an agency or entity that 14 receives municipal funds for economic development 15 purposes pursuant to a contract to submit a report on 16 the use of the funds; requiring the municipality to 17 include the report in its annual financial audit; 18 requiring municipalities to report on the provision of 19 economic development incentives to businesses to the 20 Legislative Committee on Intergovernmental Affairs; 21 amending s. 212.05, F.S.; limiting the maximum amount 22 of tax that may be imposed and collected on the sale 23 or use of a boat in this state; amending s. 212.08, 24 F.S.; temporarily exempting from sales and use taxes 25 the increase in purchases of certain industrial 26 machinery and equipment over the amount of purchases 27 made in a base year; redefining the terms “real 28 property” and “rehabilitation of real property” for 29 purposes of the sales tax exemption on certain 30 building materials used in the rehabilitation of real 31 property used in an enterprise zone; specifying 32 procedures to claim a sales tax credit under the 33 entertainment industry financial incentive program; 34 providing an exemption from the use tax for an 35 aircraft that temporarily enters the state or is 36 temporarily in the state for certain purposes; 37 requiring documentation that identifies the aircraft 38 in order to qualify for the exemption; providing that 39 the exemption is in addition to certain other 40 exemptions; amending s. 213.053, F.S.; authorizing the 41 Department of Revenue to provide confidential taxpayer 42 information relating to certain tax credits under the 43 entertainment industry financial incentive program to 44 the Office of Film and Entertainment and to the Office 45 of Tourism, Trade, and Economic Development; amending 46 s. 220.02, F.S.; providing for tax credits pursuant to 47 the entertainment industry financial incentive program 48 and the jobs for the unemployed tax credit program to 49 be taken against the corporate income tax or the 50 franchise tax after other existing credits are taken; 51 creating s. 220.1896, F.S.; creating the jobs for the 52 unemployed tax credit program to provide a tax credit 53 to certain businesses that employ certain individuals 54 who were previously unemployed after a certain date; 55 providing for applications for certification under the 56 program to be reviewed by Enterprise Florida, Inc., 57 and the Office of Tourism, Trade, and Economic 58 Development; providing criminal penalties for 59 fraudulent claims of a tax credit; authorizing the 60 Office of Tourism, Trade, and Economic Development and 61 the Department of Revenue to adopt rules; providing 62 for the expiration of the tax credit program; creating 63 s. 220.1899, F.S.; creating the entertainment industry 64 tax credit for a tax credit against the qualified 65 expenditures made by a qualified production company 66 pursuant to the entertainment industry financial 67 incentive program; amending s. 220.191, F.S.; 68 redefining the terms “qualifying business” and 69 “qualifying project” for purposes of the capital 70 investment tax credit; providing for the amount of the 71 credit to diminish over a 10-year period; conforming 72 cross-references to changes made in the act; providing 73 that a business seeking the tax credit has the 74 responsibility of demonstrating qualification for the 75 credit to the Department of Revenue and the Office of 76 Tourism, Trade, and Economic Development; authorizing 77 the payment of a prorated tax credit under certain 78 circumstances; providing that a business that receives 79 a capital investment tax credit is not eligible for a 80 tax refund under the qualified target industry tax 81 refund program; amending s. 288.095, F.S.; increasing 82 the amount of tax refund payments available to pay the 83 state’s share of refunds under the qualified defense 84 contractor and space flight business tax refund 85 program and the tax refund program for qualified 86 target industry businesses; amending s. 288.106, F.S.; 87 providing legislative findings and declarations for 88 the tax refund program for qualified target industry 89 businesses; revising the definitions of terms 90 applicable to the program; revising the criteria for 91 the Office of Tourism, Trade, and Economic Development 92 and Enterprise Florida, Inc., to use in identifying 93 target industry businesses; conforming cross 94 references to changes made by the act; authorizing 95 additional tax refunds to qualified target industry 96 businesses that meet specified conditions; requiring 97 an application for certification as a qualified target 98 industry business to include an estimate of the 99 proportion of the machinery, equipment, and other 100 resources that will be used in the applicant’s 101 proposed operation in Florida and purchased by the 102 applicant outside the state; requiring the Office of 103 Tourism, Trade, and Economic Development to consider 104 the state’s return on investment in evaluating 105 applicants for the tax refund program; extending the 106 date by which a qualified target industry business may 107 request an economic-stimulus exemption; redesignating 108 economic-stimulus exemptions as economic recovery 109 extensions; authorizing the Office of Tourism, Trade, 110 and Economic Development to waive the requirement for 111 a business to annually provide proof of taxes paid if 112 the business provides proof that it has paid certain 113 taxes in amounts at least equal to the total amount of 114 refunds for which the business is eligible; requiring 115 the Office of Tourism, Trade, and Economic Development 116 to conduct a review of certain qualified target 117 industry businesses that have received their final tax 118 refund and provide a report of its findings and 119 recommendations to the Governor, the President of the 120 Senate, and the Speaker of the House of 121 Representatives; extending the date by which 122 businesses may apply to participate in the tax refund 123 program for qualified target industry businesses; 124 amending s. 288.107, F.S.; conforming cross-references 125 to changes made by the act; amending s. 288.125, F.S.; 126 redefining the term “entertainment industry” to 127 include digital media projects; amending s. 288.1251, 128 F.S.; requiring the Office of Film and Entertainment 129 to update its strategic plan every 5 years; deleting 130 requirements for the Office of Film and Entertainment 131 to represent certain decisionmakers within the 132 entertainment industry and to act as a liaison between 133 entertainment industry producers and labor 134 organizations; amending s. 288.1252, F.S.; deleting 135 obsolete provisions; deleting the requirement for the 136 Commissioner of Film and Entertainment and a 137 representative of the Florida Tourism Marketing 138 Council to serve as ex officio members of the Film and 139 Entertainment Advisory Council; amending s. 288.1253, 140 F.S.; eliminating provisions authorizing the payment 141 of travel expenses to persons other than employees of 142 the Office of Film and Entertainment, the Governor and 143 Lieutenant Governor, and security staff; providing for 144 the payment of travel expenses through reimbursements; 145 amending s. 288.1254, F.S.; revising the entertainment 146 industry financial incentive program to provide 147 corporate income tax and sales and use tax credits to 148 qualified entertainment entities rather than 149 reimbursements from appropriations; revising 150 provisions relating to definitions, creation, and 151 scope, application procedures, approval process, 152 eligibility, required documents, qualified and 153 certified productions, and annual reports; providing 154 duties and responsibilities of the Office of Film and 155 Entertainment, the Office of Tourism, Trade, and 156 Economic Development, and the Department of Revenue 157 relating to the tax credits; providing criteria and 158 limitations for awards of tax credits; providing for 159 uses, allocations, election, distributions, and 160 carryforward of the tax credits; providing for 161 withdrawal of tax credit eligibility; providing for 162 use of consolidated returns; providing for partnership 163 and noncorporate distributions of tax credits; 164 providing for succession of tax credits; providing 165 requirements for transfer of tax credits; authorizing 166 the Office of Tourism, Trade, and Economic Development 167 to adopt rules, policies, and procedures; authorizing 168 the Department of Revenue to adopt rules and conduct 169 audits; providing for revocation and forfeiture of tax 170 credits; providing liability for reimbursement of 171 certain costs and fees associated with a fraudulent 172 claim; requiring an annual report to the Governor and 173 the Legislature; providing for future repeal; 174 amending s. 288.1258, F.S.; requiring the Office of 175 Film and Entertainment to include in its records 176 certain ratios of tax exemptions and incentives to the 177 estimated funds expended by a certified production; 178 creating s. 288.9552, F.S.; creating the Research 179 Commercialization Matching Grant Program to provide 180 grants to certain small companies; designating the 181 Florida Institute for the Commercialization of Public 182 Research to serve as the administrator of the program; 183 specifying criteria to determine eligibility for a 184 grant; limiting the maximum amount of an award; 185 requiring the institute to issue an annual report 186 relating to the grant program to the Governor, the 187 President of the Senate, and the Speaker of the House 188 of Representatives; amending s. 290.00677, F.S.; 189 conforming cross-references to changes made by the 190 act; amending s. 373.441, F.S.; revising provisions 191 relating to adoption of rules relating to permitting; 192 requiring the Department of Environmental Protection 193 to adopt rules that authorize a local government to 194 petition the Governor and Cabinet for certain 195 delegation requests; requiring the Department of 196 Environmental Protection detail the statutes or rules 197 that were not satisfied by a local government that 198 made a request for delegation and to detail actions 199 that could be taken to allow for delegation; 200 authorizing a local government to petition the 201 Governor and Cabinet to review the denial of a 202 delegation request; providing that a delegation of 203 authority must be approved if it meets certain rule 204 requirements; amending s. 403.061, F.S.; directing the 205 Department of Environmental Protection to expand the 206 use of online self-certification for certain 207 exemptions and permits; limiting the authority of a 208 local government the method or form for documenting 209 that a project qualifies for an exemption or meets the 210 requirements for a permit; requiring the Office of 211 Program Policy Analysis and Government Accountability 212 to review the Enterprise Zone Program and submit a 213 report of its findings and recommendations to the 214 Governor, the President of the Senate, and the Speaker 215 of the House of Representatives; authorizing the funds 216 in specific appropriation 2649 of chapter 2008-152, 217 Laws of Florida, to be used for additional space 218 related economic-development purposes; providing an 219 appropriation to the Office of Tourism, Trade, and 220 Economic Development to fund the operations of Space 221 Florida; providing an appropriation to the Space 222 Business Investment and Financial Services Trust Fund 223 to carry out the purposes of the trust fund; providing 224 an appropriation to the Office of Tourism, Trade, and 225 Economic Development to enable Space Florida to 226 provide targeted business-development support services 227 and business recruitment; providing an appropriation 228 to the Office of Tourism, Trade, and Economic 229 Development for Space Florida to retrain workers in 230 the space industry; requiring all state agencies 231 owning or operating state-owned real property to 232 submit inventory data to the Department of 233 Environmental Protection by a specified date; 234 requiring the Department of Environmental Protection 235 to submit to the Governor, the President of the 236 Senate, and the Speaker of the House of 237 Representatives a report that lists state-owned real 238 property recommended for disposition; providing that 239 the proceeds of the sale of surplus real property be 240 deposited in the General Revenue Fund to be used for 241 certain specified purposes; requiring the Office of 242 Program Policy Analysis and Government Accountability 243 to review and evaluate the Research Commercialization 244 Matching Grant Program and submit a report of its 245 findings to the Governor, the President of the Senate, 246 and the Speaker of the House of Representatives; 247 reauthorizing certain exemptions, 2-year extensions, 248 and local comprehensive plan amendments granted, 249 authorized, or adopted in accordance with Chapter 250 2009-96, Laws of Florida; extending the expiration 251 dates of certain permits issued by the Department of 252 Environmental Protection or a water management 253 district; extending certain previously granted build 254 out dates; amending s. 47 of chapter 2009-82, Laws of 255 Florida; delaying the expiration of the Florida 256 Homebuyer Opportunity Program; requiring that 257 construction contracts funded by state funds contain a 258 provision requiring the contractor to give preference 259 to the employment of Florida residents if they have 260 substantially equal qualifications as nonresidents; 261 defining the term “substantially equal 262 qualifications”; requiring that a contractor post 263 employment needs in the state’s job bank system; 264 providing an appropriation to the Florida Institute 265 for the Commercialization of Public Research to fund 266 grants under the Research Commercialization Matching 267 Grant Program; conditionally specifying the use of an 268 appropriation to the Board of Governors of the State 269 University System to fund proposals under the State 270 University Research Commercialization Assistance Grant 271 Program; providing an appropriation for the Florida 272 Export Finance Corporation to capitalize an expansion 273 of its existing loan program for exporters; providing 274 a finding that the act fulfills an important state 275 interest; providing for severability; providing 276 effective dates. 277 278 Be It Enacted by the Legislature of the State of Florida: 279 280 Section 1. Effective July 1, 2010, section 125.045, Florida 281 Statutes, is amended to read: 282 125.045 County economic development powers.— 283 (1) The Legislature finds and declares that this state 284 faces increasing competition from other states and other 285 countries for the location and retention of private enterprises 286 within its borders. Furthermore, the Legislature finds that 287 there is a need to enhance and expand economic activity in the 288 counties of this state by attracting and retaining manufacturing 289 development, business enterprise management, and other 290 activities conducive to economic promotion, in order to provide 291 a stronger, more balanced, and stable economy in the state; to 292 enhance and preserve purchasing power and employment 293 opportunities for the residents of this state; and to improve 294 the welfare and competitive position of the state. The 295 Legislature declares that it is necessary and in the public 296 interest to facilitate the growth and creation of business 297 enterprises in the counties of the state. 298 (2) The governing body of a county may expend public funds 299 to attract and retain business enterprises, and the use of 300 public funds toward the achievement of such economic development 301 goals constitutes a public purpose. The provisions of this 302 chapter which confer powers and duties on the governing body of 303 a county, including any powers not specifically prohibited by 304 law which can be exercised by the governing body of a county, 305 must be liberally construed in order to effectively carry out 306 the purposes of this section. 307 (3) For the purposes of this section, it constitutes a 308 public purpose to expend public funds for economic development 309 activities, including, but not limited to, developing or 310 improving local infrastructure, issuing bonds to finance or 311 refinance the cost of capital projects for industrial or 312 manufacturing plants, leasing or conveying real property, and 313 making grants to private enterprises for the expansion of 314 businesses existing in the community or the attraction of new 315 businesses to the community. 316 (4) A contract between the governing body of a county or 317 other entity engaged in economic development activities on 318 behalf of the county and an economic development agency must 319 require the agency or entity receiving county funds to submit a 320 report to the governing body of the county detailing how county 321 funds were spent and detailing the results of the economic 322 development agency’s or entity’s efforts on behalf of the 323 county. The county shall include the report as an addendum to 324 the county’s annual financial audit. 325 (5)(a) By December 1, 2010, and annually thereafter, each 326 county shall report to the Legislative Committee on 327 Intergovernmental Relations the economic development incentives 328 given to any business during the county’s previous fiscal year. 329 Economic development incentives include: 330 1. Direct financial incentives of monetary assistance 331 provided to a business from the county or through an 332 organization authorized by the county. Such incentives include 333 grants, loans, equity investments, loan insurance and 334 guarantees, and training subsidies. 335 2. Indirect incentives in the form of grants and loans 336 provided to businesses and community organizations that provide 337 support to businesses or promote business investment or 338 development. 339 3. Fee-based or tax-based incentives, including credits, 340 refunds, exemptions, and property tax abatement or assessment 341 reductions. 342 4. Below-market rate leases or deeds for real property. 343 5. Any other inducement provided to a business in order for 344 the business to create or retain jobs, relocate to or remain in 345 the county, or expand its current operations in the county. 346 (b) A county shall report its economic development 347 incentives in the format specified by the Legislative Committee 348 on Intergovernmental Relations. 349 (c) The Legislative Committee on Intergovernmental 350 Relations shall compile the economic development incentives 351 provided by each county in a manner that shows the total of each 352 class of economic development incentives provided by each county 353 and all counties. 354 (d) If a county did not provide any economic development 355 incentives during its previous fiscal year, the governing body 356 of the county must report to the Legislative Committee on 357 Intergovernmental Relations that the county did not provide any 358 incentives. 359 Section 2. Effective July 1, 2010, subsection (11) of 360 section 159.803, Florida Statutes, is amended to read: 361 159.803 Definitions.—As used in this part, the term: 362 (11) “Florida First Business project” means any project 363 which is certified by the Office of Tourism, Trade, and Economic 364 Development as eligible to receive an allocation from the 365 Florida First Business allocation pool established pursuant to 366 s. 159.8083. The Office of Tourism, Trade, and Economic 367 Development may certify those projects meeting the criteria set 368 forth in s. 288.106(4)(b)s.288.106(3)(b)or any project 369 providing a substantial economic benefit to this state. 370 Section 3. Effective July 1, 2010, subsection (9) of 371 section 166.021, Florida Statutes, is amended to read: 372 166.021 Powers.— 373 (9)(a) The Legislature finds and declares that this state 374 faces increasing competition from other states and other 375 countries for the location and retention of private enterprises 376 within its borders. Furthermore, the Legislature finds that 377 there is a need to enhance and expand economic activity in the 378 municipalities of this state by attracting and retaining 379 manufacturing development, business enterprise management, and 380 other activities conducive to economic promotion, in order to 381 provide a stronger, more balanced, and stable economy in the 382 state, to enhance and preserve purchasing power and employment 383 opportunities for the residents of this state, and to improve 384 the welfare and competitive position of the state. The 385 Legislature declares that it is necessary and in the public 386 interest to facilitate the growth and creation of business 387 enterprises in the municipalities of the state. 388 (b) The governing body of a municipality may expend public 389 funds to attract and retain business enterprises, and the use of 390 public funds toward the achievement of such economic development 391 goals constitutes a public purpose. The provisions of this 392 chapter which confer powers and duties on the governing body of 393 a municipality, including any powers not specifically prohibited 394 by law which can be exercised by the governing body of a 395 municipality, shall be liberally construed in order to 396 effectively carry out the purposes of this subsection. 397 (c) For the purposes of this subsection, it constitutes a 398 public purpose to expend public funds for economic development 399 activities, including, but not limited to, developing or 400 improving local infrastructure, issuing bonds to finance or 401 refinance the cost of capital projects for industrial or 402 manufacturing plants, leasing or conveying real property, and 403 making grants to private enterprises for the expansion of 404 businesses existing in the community or the attraction of new 405 businesses to the community. 406 (d) A contract between the governing body of a municipality 407 or other entity engaged in economic development activities on 408 behalf of the municipality and an economic development agency 409 must require the agency or entity receiving county funds to 410 submit a report to the governing body of the county detailing 411 how county funds were spent and detailing the results of the 412 economic development agency’s or entity’s efforts on behalf of 413 the county. The municipality shall include the report as an 414 addendum to the municipality’s annual financial audit. 415 (e)1. By December 1, 2010, and annually thereafter, each 416 municipality having an annual revenues or expenditures greater 417 than $250,000 shall report to the Legislative Committee on 418 Intergovernmental Relations the economic development incentives 419 given to any business during the municipality’s previous fiscal 420 year. Economic development incentives include: 421 a. Direct financial incentives of monetary assistance 422 provided to a business from the municipality or through an 423 organization authorized by the municipality. Such incentives 424 include grants, loans, equity investments, loan insurance and 425 guarantees, and training subsidies. 426 b. Indirect incentives in the form of grants and loans 427 provided to businesses and community organizations that provide 428 support to businesses or promote business investment or 429 development. 430 c. Fee-based or tax-based incentives, including credits, 431 refunds, exemptions, and property tax abatement or assessment 432 reductions. 433 d. Below-market rate leases or deeds for real property. 434 e. Any other inducement provided to a business in order for 435 the business to create or retain jobs, relocate to or remain in 436 the county, or expand its current operations in the county. 437 2. A municipality shall report its economic development 438 incentives in the format specified by the Legislative Committee 439 on Intergovernmental Relations. 440 3. The Legislative Committee on Intergovernmental Relations 441 shall compile the economic development incentives provided by 442 each county in a manner that shows the total of each class of 443 economic development incentives provided by each municipality 444 and all municipalities. 445 4. If a municipality did not provide any economic 446 development incentives during its previous fiscal year, the 447 governing body of the municipality must report to the 448 Legislative Committee on Intergovernmental Relations that the 449 municipality did not provide any incentives. 450 (f)(d)Nothing contained inThis subsection does not limit 451shall be construed as a limitation onthe home rule powers 452 granted by the State Constitution toformunicipalities. 453 Section 4. Effective July 1, 2010, subsection (5) is added 454 to section 212.05, Florida Statutes, to read: 455 212.05 Sales, storage, use tax.—It is hereby declared to be 456 the legislative intent that every person is exercising a taxable 457 privilege who engages in the business of selling tangible 458 personal property at retail in this state, including the 459 business of making mail order sales, or who rents or furnishes 460 any of the things or services taxable under this chapter, or who 461 stores for use or consumption in this state any item or article 462 of tangible personal property as defined herein and who leases 463 or rents such property within the state. 464 (5) Notwithstanding any other provision of this chapter, 465 the maximum amount of tax imposed under this chapter and 466 collected on the sale or use of a boat or aircraft in this state 467 may not exceed $18,000. 468 Section 5. Effective July 1, 2010, paragraphs (b) and (g) 469 of subsection (5) of section 212.08, Florida Statutes, are 470 amended, paragraph (q) is added to that subsection, and 471 paragraph (ggg) is added to subsection (7) of that section, to 472 read: 473 212.08 Sales, rental, use, consumption, distribution, and 474 storage tax; specified exemptions.—The sale at retail, the 475 rental, the use, the consumption, the distribution, and the 476 storage to be used or consumed in this state of the following 477 are hereby specifically exempt from the tax imposed by this 478 chapter. 479 (5) EXEMPTIONS; ACCOUNT OF USE.— 480 (b) Machinery and equipment used to increase productive 481 output.— 482 1. Industrial machinery and equipment purchased for 483 exclusive use by a new business in spaceport activities as 484 defined by s. 212.02 or for use in new businesses thatwhich485 manufacture, process, compound, or produce for sale items of 486 tangible personal property at fixed locations are exempt from 487 the tax imposed by this chapter upon an affirmative showing by 488 the taxpayer to the satisfaction of the department that such 489 items are used in a new business in this state. Such purchases 490 must be made prior to the date the business first begins its 491 productive operations, and delivery of the purchased item must 492 be made within 12 months afterofthat date. 493 2. Industrial machinery and equipment purchased for 494 exclusive use by an expanding facility which is engaged in 495 spaceport activities as defined by s. 212.02 or for use in 496 expanding manufacturing facilities or plant units which 497 manufacture, process, compound, or produce for sale items of 498 tangible personal property at fixed locations in this state are 499 exempt from any amount of tax imposed by this chapter upon an 500 affirmative showing by the taxpayer to the satisfaction of the 501 department that such items are used to increase the productive 502 output of such expanded facility or business by not less than 10 503 percent. 504 3. Beginning July 1, 2010, and ending June 30, 2011, and 505 beginning July 1, 2011, and ending June 30, 2012, that portion 506 of the total amount of a taxpayer’s purchases of industrial 507 machinery and equipment for the exclusive use by a facility that 508 is engaged in spaceport activities, or for use in manufacturing 509 facilities or plant units that manufacture, process, compound, 510 or produce for sale items of tangible personal property at fixed 511 locations in this state, which exceeds the total amount incurred 512 for all industrial machinery and equipment purchased and placed 513 into service by the taxpayer in its tax year that began in 2008 514 is exempt from the tax imposed by this chapter to the extent 515 that the taxpayer demonstrates to the satisfaction of the 516 department the actual costs incurred to purchase the items and 517 that the items have been located and placed into service in this 518 state. The taxpayer’s 2008 tax year shall be the baseline year 519 for future computations of the tax exemption as long as the 520 exemption exists. 521 4.3.a. To receive an exemption provided by this paragraph 522subparagraph 1.or subparagraph 2., a qualifying business entity 523 shall apply to the department for a temporary tax exemption 524 permit. The application shall state that anewbusiness 525 exemptionorexpandedbusiness exemptionis being sought. Upon a 526 tentative affirmative determination by the department pursuant 527 to subparagraph 1.,orsubparagraph 2., or subparagraph 3., the 528 department shall issue such permit. 529 b. The applicant shallbe required tomaintain all 530 necessary books and records to support the exemption. Upon 531 completion of purchases of qualified machinery and equipment 532 pursuant to subparagraph 1.,orsubparagraph 2., or subparagraph 533 3., the temporary tax permit shall be delivered to the 534 department or returned to the department by certified or 535 registered mail. 536 c. If, in a subsequent audit conducted by the department, 537 it is determined that the machinery and equipment purchased as 538 exempt under subparagraph 1.,orsubparagraph 2., or 539 subparagraph 3. did not meet the criteria mandated by this 540 paragraph or if commencement of production did not occur, the 541 amount of taxes exempted at the time of purchase shall 542 immediately be due and payable to the department by the business 543 entity, together with the appropriate interest and penalty, 544 computed from the date of purchase, in the manner prescribed by 545 this chapter. 546 d. IfIn the eventa qualifying business entity fails to 547 apply for a temporary exemption permit or if the tentative 548 determination by the department required to obtain a temporary 549 exemption permit is negative, a qualifying business entity shall 550 receive antheexemption provided in this paragraphsubparagraph5511.or subparagraph 2.through a refund of previously paid taxes. 552 No refund may be made for such taxes unless the criteria 553 mandated by subparagraph 1.,orsubparagraph 2., or subparagraph 554 3. have been met and commencement of production has occurred. 555 e. The exemption provided by subparagraph 3. applies to the 556 taxpayer only through a refund of previously paid taxes. The 557 taxpayer must submit a refund application to the Department of 558 Revenue within 12 months after the last day of the 12-month 559 period during which the machinery and equipment qualifies for 560 the exemption under this subparagraph. The refund shall be paid 561 to the taxpayer from the General Revenue Fund. 562 5.4.The department shall adopt rules governing 563 applications for, issuance of, and the form of temporary tax 564 exemption permits; provisions for recapture of taxes; and the 565 manner and form of refund applications, and may establish 566 guidelines as to the requisites for an affirmative showing of 567 increased productive output, commencement of production, and 568 qualification for exemption. 569 6.5.The exemptions provided in this paragraph 570subparagraphs 1. and 2.do not apply to machinery or equipment 571 purchased or used by electric utility companies, communications 572 companies, oil or gas exploration or production operations, 573 publishing firms that do not export at least 50 percent of their 574 finished product out of the state, any firm subject to 575 regulation by the Division of Hotels and Restaurants of the 576 Department of Business and Professional Regulation, or any firm 577 thatwhichdoes not manufacture, process, compound, or produce 578 for sale items of tangible personal property or thatwhichdoes 579 not use such machinery and equipment in spaceport activities as 580 required by this paragraph. The exemptions provided in this 581 paragraphsubparagraphs 1. and 2. shallapply to machinery and 582 equipment purchased for use in phosphate or other solid minerals 583 severance, mining, or processing operations. 584 7.6.For the purposes of the exemptions provided in this 585 paragraph, the termsubparagraphs 1.and 2., these terms have the586following meanings: 587 a. “Industrial machinery and equipment” means tangible 588 personal property or other property that has a depreciable life 589 of 3 years or more and that is used as an integral part in the 590 manufacturing, processing, compounding, or production of 591 tangible personal property for sale or is exclusively used in 592 spaceport activities. A building and its structural components 593 are not industrial machinery and equipment unless the building 594 or structural component is so closely related to the industrial 595 machinery and equipment that it houses or supports that the 596 building or structural component can be expected to be replaced 597 when the machinery and equipment are replaced. Heating and air 598 conditioning systems are not industrial machinery and equipment 599 unless the sole justification for their installation is to meet 600 the requirements of the production process, even though the 601 system may provide incidental comfort to employees or serve, to 602 an insubstantial degree, nonproduction activities. The term 603 includes parts and accessories only to the extent that the 604 exemption thereof is consistent with the provisions of this 605 paragraph. 606 b. “Productive output” means the number of units actually 607 produced by a single plant or operation in a single continuous 608 12-month period, irrespective of sales. Increases in productive 609 output shall be measured by the output for 12 continuous months 610 immediately following the completion of installation of such 611 machinery or equipment over the output for the 12 continuous 612 months immediately preceding such installation. However, if a 613 different 12-month continuous period of time would more 614 accurately reflect the increase in productive output of 615 machinery and equipment purchased to facilitate an expansion, 616 the increase in productive output may be measured during that 617 12-month continuous period of time if such time period is 618 mutually agreed upon by the Department of Revenue and the 619 expanding business prior to the commencement of production; 620 provided, however, in no case may such time period begin later 621 than 2 years following the completion of installation of the new 622 machinery and equipment. The units used to measure productive 623 output shall be physically comparable between the two periods, 624 irrespective of sales. 625 (g) Building materials used in the rehabilitation of real 626 property located in an enterprise zone.— 627 1. Building materials used in the rehabilitation of real 628 property located in an enterprise zone areshall beexempt from 629 the tax imposed by this chapter upon an affirmative showing to 630 the satisfaction of the department that the items have been used 631 for the rehabilitation of real property located in an enterprise 632 zone. Except as provided in subparagraph 2., this exemption 633 inures to the owner, lessee, or lessor of the rehabilitated real 634 property located in an enterprise zone only through a refund of 635 previously paid taxes. To receive a refund pursuant to this 636 paragraph, the owner, lessee, or lessor of the rehabilitated 637 real property located in an enterprise zone must file an 638 application under oath with the governing body or enterprise 639 zone development agency having jurisdiction over the enterprise 640 zone where the business is located, as applicable, which 641 includes: 642 a. The name and address of the person claiming the refund. 643 b. An address and assessment roll parcel number of the 644 rehabilitated real property in an enterprise zone for which a 645 refund of previously paid taxes is being sought. 646 c. A description of the improvements made to accomplish the 647 rehabilitation of the real property. 648 d. A copy of the building permit issued for the 649 rehabilitation of the real property. 650 e. A sworn statement, under the penalty of perjury, from 651 the general contractor licensed in this state with whom the 652 applicant contracted to make the improvements necessary to 653 accomplish the rehabilitation of the real property, which 654 statement lists the building materials used in the 655 rehabilitation of the real property, the actual cost of the 656 building materials, and the amount of sales tax paid in this 657 state on the building materials. IfIn the event thata general 658 contractor has not been used, the applicant shall provide this 659 information in a sworn statement, under the penalty of perjury. 660 Copies of the invoices thatwhichevidence the purchase of the 661 building materials used in such rehabilitation and the payment 662 of sales tax on the building materials shall be attached to the 663 sworn statement provided by the general contractor or by the 664 applicant. Unless the actual cost of building materials used in 665 the rehabilitation of real property and the payment of sales 666 taxes due thereon is documented by a general contractor or by 667 the applicant in this manner, the cost of such building 668 materials shall be an amount equal to 40 percent of the increase 669 in assessed value for ad valorem tax purposes. 670 f. The identifying number assigned pursuant to s. 290.0065 671 to the enterprise zone in which the rehabilitated real property 672 is located. 673 g. A certification by the local building code inspector 674 that the improvements necessary to accomplish the rehabilitation 675 of the real property are substantially completed. 676 h. Whether the business is a small business as defined by 677 s. 288.703(1). 678 i. If applicable, the name and address of each permanent 679 employee of the business, including, for each employee who is a 680 resident of an enterprise zone, the identifying number assigned 681 pursuant to s. 290.0065 to the enterprise zone in which the 682 employee resides. 683 2. This exemption inures to a municipalitycity, county, 684 other governmental agency, or nonprofit community-based 685 organization through a refund of previously paid taxes if the 686 building materials used in the rehabilitation of real property 687 located in an enterprise zone are paid for from the funds of a 688 community development block grant, State Housing Initiatives 689 Partnership Program, or similar grant or loan program. To 690 receive a refund pursuant to this paragraph, a municipality 691city, county, other governmental agency, or nonprofit community 692 based organization must file an application thatwhichincludes 693 the same information required to be provided in subparagraph 1. 694 by an owner, lessee, or lessor of rehabilitated real property. 695 In addition, the application must include a sworn statement 696 signed by the chief executive officer of the municipalitycity, 697 county, other governmental agency, or nonprofit community-based 698 organization seeking a refund which states that the building 699 materials for which a refund is sought were paid for from the 700 funds of a community development block grant, State Housing 701 Initiatives Partnership Program, or similar grant or loan 702 program. 703 3. Within 10 working days after receipt of an application, 704 the governing body or enterprise zone development agency shall 705 review the application to determine if it contains all the 706 information required pursuant to subparagraph 1. or subparagraph 707 2. and meets the criteria set out in this paragraph. The 708 governing body or agency shall certify all applications that 709 contain the information required pursuant to subparagraph 1. or 710 subparagraph 2. and that meet the criteria set out in this 711 paragraph as eligible to receive a refund. If applicable, the 712 governing body or agency shall also certify if 20 percent of the 713 employees of the business are residents of an enterprise zone, 714 excluding temporary and part-time employees. The certification 715 shall be in writing, and a copy of the certification shall be 716 transmitted to the executive director of the departmentof717Revenue. The applicant isshall beresponsible for forwarding a 718 certified application to the department within the time 719 specified in subparagraph 4. 720 4. An application for a refund pursuant to this paragraph 721 must be submitted to the department within 6 months after the 722 rehabilitation of the property is deemed to be substantially 723 completed by the local building code inspector or by September 1 724 after the rehabilitated property is first subject to assessment. 725 5. Not more than one exemption through a refund of 726 previously paid taxes for the rehabilitation of real property 727 shall be permitted for any single parcel of property unless 728 there is a change in ownership, a new lessor, or a new lessee of 729 the real property. No refund shall be granted pursuant to this 730 paragraph unless the amount to be refunded exceeds $500. No 731 refund granted pursuant to this paragraph shall exceed the 732 lesser of 97 percent of the Florida sales or use tax paid on the 733 cost of the building materials used in the rehabilitation of the 734 real property as determined pursuant to sub-subparagraph 1.e. or 735 $5,000, or, if no less than 20 percent of the employees of the 736 business are residents of an enterprise zone, excluding 737 temporary and part-time employees, the amount of refund granted 738 pursuant to this paragraph mayshallnot exceed the lesser of 97 739 percent of the sales tax paid on the cost of such building 740 materials or $10,000. A refund approved pursuant to this 741 paragraph shall be made within 30 days afterofformal approval 742 by the department of the application for the refund. This 743 subparagraph appliesshall applyretroactively to July 1, 2005. 744 6. The department shall adopt rules governing the manner 745 and form of refund applications and may establish guidelines as 746 to the requisites for an affirmative showing of qualification 747 for exemption under this paragraph. 748 7. The department shall deduct an amount equal to 10 749 percent of each refund granted underthe provisions ofthis 750 paragraph from the amount transferred into the Local Government 751 Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20 752 for the county area in which the rehabilitated real property is 753 located and shall transfer that amount to the General Revenue 754 Fund. 755 8. For the purposes of the exemption provided in this 756 paragraph, the term: 757 a. “Building materials” means tangible personal property 758 thatwhichbecomes a component part of improvements to real 759 property. 760 b. “Real property” has the same meaning as provided in s. 761 192.001(12), except that the term does not include a condominium 762 parcel or condominium property as defined in s. 718.103. 763 c. “Rehabilitation of real property” means the 764 reconstruction, renovation, restoration, rehabilitation, 765 construction, or expansion of improvements to real property. 766 d. “Substantially completed” has the same meaning as 767 provided in s. 192.042(1). 768 9. This paragraph expires on the date specified in s. 769 290.016 for the expiration of the Florida Enterprise Zone Act. 770 (q) Entertainment industry tax credit; authorization; 771 eligibility for credits.—The credit against sales tax authorized 772 pursuant to s. 288.1254 is available to the holder of a 773 certificate only through a refund of previously paid taxes. To 774 receive a refund, a transferee must submit an application for 775 refund to the Department of Revenue within 12 months after 776 receipt of the transferred credit. Refunds shall be paid from 777 the General Revenue Fund. If the credit for the qualified 778 expenditures is larger than the amount owed on the sales and use 779 tax return on which the credit may be claimed, the unused amount 780 of the credit may be carried forward to a succeeding reporting 781 period as provided in s. 288.1254(4)(e). 782 (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any 783 entity by this chapter do not inure to any transaction that is 784 otherwise taxable under this chapter when payment is made by a 785 representative or employee of the entity by any means, 786 including, but not limited to, cash, check, or credit card, even 787 when that representative or employee is subsequently reimbursed 788 by the entity. In addition, exemptions provided to any entity by 789 this subsection do not inure to any transaction that is 790 otherwise taxable under this chapter unless the entity has 791 obtained a sales tax exemption certificate from the department 792 or the entity obtains or provides other documentation as 793 required by the department. Eligible purchases or leases made 794 with such a certificate must be in strict compliance with this 795 subsection and departmental rules, and any person who makes an 796 exempt purchase with a certificate that is not in strict 797 compliance with this subsection and the rules is liable for and 798 shall pay the tax. The department may adopt rules to administer 799 this subsection. 800 (ggg) Aircraft temporarily in the state.— 801 1. An aircraft owned by a nonresident is exempt from the 802 use tax imposed by this chapter if the aircraft enters and 803 remains in this state for less than a total of 21 days during 804 the 6-month period after the date of purchase. The temporary use 805 of the aircraft and subsequent removal from this state may be 806 proven by invoices for fuel, tie-down, or hangar charges issued 807 by out-of-state vendors or suppliers or similar documentation 808 that clearly and specifically identifies the aircraft. The 809 exemption created by this subparagraph is in addition to the 810 exemptions provided in subparagraph 2. and s. 212.05(1)(a). 811 2. An aircraft owned by a nonresident is exempt from the 812 use tax imposed by this chapter if the aircraft enters or 813 remains in this state exclusively for the purpose of flight 814 training, repairs, alterations, refitting, or modification. Such 815 purposes must be supported by written documentation issued by 816 in-state vendors or suppliers which clearly and specifically 817 identifies the aircraft. The exemption created by this 818 subparagraph is in addition to the exemptions provided in 819 subparagraph 1. and s. 212.05(1)(a). 820 Section 6. Effective July 1, 2012, paragraph (b) of 821 subsection (5) of section 212.08, Florida Statutes, as amended 822 by this act, is amended to read: 823 212.08 Sales, rental, use, consumption, distribution, and 824 storage tax; specified exemptions.—The sale at retail, the 825 rental, the use, the consumption, the distribution, and the 826 storage to be used or consumed in this state of the following 827 are hereby specifically exempt from the tax imposed by this 828 chapter. 829 (5) EXEMPTIONS; ACCOUNT OF USE.— 830 (b) Machinery and equipment used to increase productive 831 output.— 832 1. Industrial machinery and equipment purchased for 833 exclusive use by a new business in spaceport activities as 834 defined by s. 212.02 or for use in new businesses that 835 manufacture, process, compound, or produce for sale items of 836 tangible personal property at fixed locations are exempt from 837 the tax imposed by this chapter upon an affirmative showing by 838 the taxpayer to the satisfaction of the department that such 839 items are used in a new business in this state. Such purchases 840 must be made prior to the date the business first begins its 841 productive operations, and delivery of the purchased item must 842 be made within 12 months after that date. 843 2. Industrial machinery and equipment purchased for 844 exclusive use by an expanding facility that is engaged in 845 spaceport activities as defined by s. 212.02 or for use in 846 expanding manufacturing facilities or plant units that 847 manufacture, process, compound, or produce for sale items of 848 tangible personal property at fixed locations in this state are 849 exempt from any amount of tax imposed by this chapter upon an 850 affirmative showing by the taxpayer to the satisfaction of the 851 department that such items are used to increase the productive 852 output of such expanded facility or business by at least 10 853 percent. 8543.Beginning July 1, 2010, and ending June 30, 2011, and855beginning July 1, 2011, and ending June 30, 2012, that portion856of the total amount of a taxpayer’s purchases of industrial857machinery and equipment for the exclusive use by a facility that858is engaged in spaceport activities, or for use in manufacturing859facilities or plant units that manufacture, process, compound,860or produce for sale items of tangible personal property at fixed861locations in this state, which exceeds the total amount incurred862for all industrial machinery and equipment purchased and placed863into service by the taxpayer in its tax year that began in 2008864is exempt from the tax imposed by this chapter to the extent865that the taxpayer demonstrates to the satisfaction of the866department the actual costs incurred to purchase the items and867that the items have been located and placed into service in this868state. The taxpayer’s 2008 tax year shall be the baseline year869for future computations of the tax exemption as long as the870exemption exists.871 3.4.a. To receive an exemption provided by this paragraph, 872 a qualifying business entity shall apply to the department for a 873 temporary tax exemption permit. The application shall state that 874 a business exemption is being sought. Upon a tentative 875 affirmative determination by the department pursuant to 876 subparagraph 1. or,subparagraph 2.,or subparagraph3., the 877 department shall issue such permit. 878 b. The applicant shall maintain all necessary books and 879 records to support the exemption. Upon completion of purchases 880 of qualified machinery and equipment pursuant to subparagraph 1. 881 or,subparagraph 2.,or subparagraph3., the temporary tax 882 permit shall be delivered to the department or returned to the 883 department by certified or registered mail. 884 c. If, in a subsequent audit conducted by the department, 885 it is determined that the machinery and equipment purchased as 886 exempt under subparagraph 1. or,subparagraph 2.,or887subparagraph3.did not meet the criteria mandated by this 888 paragraph or if commencement of production did not occur, the 889 amount of taxes exempted at the time of purchase shall 890 immediately be due and payable to the department by the business 891 entity, together with the appropriate interest and penalty, 892 computed from the date of purchase, in the manner prescribed by 893 this chapter. 894 d. If a qualifying business entity fails to apply for a 895 temporary exemption permit or if the tentative determination by 896 the department required to obtain a temporary exemption permit 897 is negative, a qualifying business entity shall receive thean898 exemption provided in this paragraph through a refund of 899 previously paid taxes. No refund may be made for such taxes 900 unless the criteria mandated by subparagraph 1. or,subparagraph 901 2., or subparagraph3.have been met and commencement of 902 production has occurred. 903e.The exemption provided by subparagraph 3. applies to the904taxpayer only through a refund of previously paid taxes. The905taxpayer must submit a refund application to the Department of906Revenue within 12 months after the last day of the 12-month907period during which the machinery and equipment qualifies for908the exemption under this subparagraph. The refund shall be paid909to the taxpayer from the General Revenue Fund.910 4.5.The department shall adopt rules governing 911 applications for, issuance of, and the form of temporary tax 912 exemption permits; provisions for recapture of taxes; and the 913 manner and form of refund applications, and may establish 914 guidelines as to the requisites for an affirmative showing of 915 increased productive output, commencement of production, and 916 qualification for exemption. 917 5.6.The exemptions provided in this paragraph do not apply 918 to machinery or equipment purchased or used by electric utility 919 companies, communications companies, oil or gas exploration or 920 production operations, publishing firms that do not export at 921 least 50 percent of their finished product out of the state, any 922 firm subject to regulation by the Division of Hotels and 923 Restaurants of the Department of Business and Professional 924 Regulation, or any firm that does not manufacture, process, 925 compound, or produce for sale items of tangible personal 926 property or that does not use such machinery and equipment in 927 spaceport activities as required by this paragraph. The 928 exemptions provided in this paragraph apply to machinery and 929 equipment purchased for use in phosphate or other solid minerals 930 severance, mining, or processing operations. 931 6.7.For the purposes of the exemptions provided in this 932 paragraph, the term: 933 a. “Industrial machinery and equipment” means tangible 934 personal property or other property that has a depreciable life 935 of 3 years or more and that is used as an integral part in the 936 manufacturing, processing, compounding, or production of 937 tangible personal property for sale or is exclusively used in 938 spaceport activities. A building and its structural components 939 are not industrial machinery and equipment unless the building 940 or structural component is so closely related to the industrial 941 machinery and equipment that it houses or supports that the 942 building or structural component can be expected to be replaced 943 when the machinery and equipment are replaced. Heating and air 944 conditioning systems are not industrial machinery and equipment 945 unless the sole justification for their installation is to meet 946 the requirements of the production process, even though the 947 system may provide incidental comfort to employees or serve, to 948 an insubstantial degree, nonproduction activities. The term 949 includes parts and accessories only to the extent that the 950 exemption thereof is consistent with the provisions of this 951 paragraph. 952 b. “Productive output” means the number of units actually 953 produced by a single plant or operation in a single continuous 954 12-month period, irrespective of sales. Increases in productive 955 output shall be measured by the output for 12 continuous months 956 immediately following the completion of installation of such 957 machinery or equipment over the output for the 12 continuous 958 months immediately preceding such installation. However, if a 959 different 12-month continuous period of time would more 960 accurately reflect the increase in productive output of 961 machinery and equipment purchased to facilitate an expansion, 962 the increase in productive output may be measured during that 963 12-month continuous period of time if such time period is 964 mutually agreed upon by the Department of Revenue and the 965 expanding business prior to the commencement of production; 966 however, in no case may such time period begin later than 2 967 years following the completion of installation of the new 968 machinery and equipment. The units used to measure productive 969 output shall be physically comparable between the two periods, 970 irrespective of sales. 971 Section 7. Effective July 1, 2010, paragraph (z) is added 972 to subsection (8) of section 213.053, Florida Statutes, to read: 973 213.053 Confidentiality and information sharing.— 974 (8) Notwithstanding any other provision of this section, 975 the department may provide: 976 (z) Information relative to tax credits taken under s. 977 288.1254 to the Office of Film and Entertainment and to the 978 Office of Tourism, Trade, and Economic Development. 979 980 Disclosure of information under this subsection shall be 981 pursuant to a written agreement between the executive director 982 and the agency. Such agencies, governmental or nongovernmental, 983 shall be bound by the same requirements of confidentiality as 984 the Department of Revenue. Breach of confidentiality is a 985 misdemeanor of the first degree, punishable as provided by s. 986 775.082 or s. 775.083. 987 Section 8. Effective July 1, 2010, subsection (8) of 988 section 220.02, Florida Statutes, is amended to read: 989 220.02 Legislative intent.— 990 (8) It is the intent of the Legislature that credits 991 against either the corporate income tax or the franchise tax be 992 applied in the following order: those enumerated in s. 631.828, 993 those enumerated in s. 220.191, those enumerated in s. 220.181, 994 those enumerated in s. 220.183, those enumerated in s. 220.182, 995 those enumerated in s. 220.1895, those enumerated in s. 221.02, 996 those enumerated in s. 220.184, those enumerated in s. 220.186, 997 those enumerated in s. 220.1845, those enumerated in s. 220.19, 998 those enumerated in s. 220.185, those enumerated in s. 220.187, 999 those enumerated in s. 220.192, those enumerated in s. 220.193, 1000andthose enumerated in s. 288.9916, and those enumerated in s. 1001 288.1254, and those enumerated in s. 220.1896. 1002 Section 9. Effective July 1, 2010, section 220.1896, 1003 Florida Statutes, is created to read: 1004 220.1896 Jobs for the Unemployed Tax Credit Program.— 1005 (1) As used in this section, the term: 1006 (a) “Certified project” means a project proposed by an 1007 eligible business that has been certified by the Office of 1008 Tourism, Trade, and Economic Development to receive and use tax 1009 credits awarded under this incentive. 1010 (b) “Eligible business” means any target industry business 1011 as defined in s. 288.106(2) which is subject to the tax imposed 1012 by this chapter. The eligible business does not have to be 1013 certified to receive the Qualified Target Industry Tax Refund 1014 Incentive under s. 288.106 in order to receive the tax credit 1015 available under this section. 1016 (c) “Office” means the Office of Tourism, Trade, and 1017 Economic Development. 1018 (d) “Qualified employee” means a person: 1019 1. Who was unemployed and determined to be monetarily 1020 eligible for unemployment compensation benefits by the Agency 1021 for Workforce Innovation for a benefit year beginning on or 1022 after January 1, 2009, or who signs an affidavit stating that he 1023 or she has been unemployed but has not been determined eligible 1024 for unemployment compensation benefits during a benefit year 1025 beginning on or after that date. 1026 2. Who was hired by an eligible business on or after July 1027 1, 2010, and had not previously been employed by the eligible 1028 business or its parent or an affiliated corporation. 1029 3. Who performed duties connected to the operations of the 1030 eligible business on a regular, full-time basis for an average 1031 of at least 36 hours per week and for at least 12 months before 1032 an eligible business is awarded a tax credit. 1033 4. Whose employment by the eligible business has not formed 1034 the basis for any other claim to a credit pursuant to this 1035 section. 1036 (2) A certified business shall receive a $1,000 tax credit 1037 for each qualified employee, pursuant to limitation in 1038 subsection (5). 1039 (3)(a) In order to become a certified business, an eligible 1040 business must file under oath with the office an application 1041 that includes: 1042 1. The name, address and NAICS identifying code of the 1043 eligible business. 1044 2. Relevant employment information. 1045 3. Verification of previous unemployment of each employee 1046 for whom the eligible business is seeking credits under this 1047 section. 1048 4. Verification that the wages paid by the eligible 1049 business to each of its qualified employees exceeds the wage 1050 eligibility levels for Medicaid and other public assistance 1051 programs. 1052 5. Any other information necessary to process the 1053 application. 1054 (b) The notice of monetary determination issued by the 1055 Agency for Workforce Innovation may be used as evidence of 1056 previous unemployment under subparagraph (3)(a)3. However, 1057 before an employee provides the notice of monetary determination 1058 to the employer, the employee may redact information that the 1059 employee considers confidential if the information is not 1060 required by the office to approve the application to certify a 1061 project. 1062 (c) The office and Enterprise Florida, Inc., shall process 1063 applications to certify a business in the order in which the 1064 applications are received, without regard as to whether the 1065 applicant is a new or an existing business. The office and 1066 Enterprise Florida, Inc., shall review and approve or deny an 1067 application pursuant to s. 288.061. 1068 (d)1. The office shall submit a copy of the letter of 1069 certification to the department within 10 days after the office 1070 issues the letter of certification to the applicant. 1071 2. If the application of an eligible business is not 1072 sufficient to certify the applicant business, the office must 1073 deny the application and issue a notice of denial to the 1074 applicant. 1075 3. If the application of an eligible business does not 1076 contain sufficient documentation of the number of qualified 1077 employees, the office shall approve the application with respect 1078 to the employees for whom the office determines are qualified 1079 employees. The office must deny the application with respect to 1080 persons for whom the office determines are not qualified 1081 employees or for whom insufficient documentation has been 1082 provided. A business may not submit a revised application for 1083 certification or for the determination of a person as qualified 1084 employee more than 3 months after the issuance of a notice of 1085 denial with respect to the business or a particular person as a 1086 qualified employee. 1087 (4) The applicant for a tax credit under this section has 1088 the responsibility to affirmatively demonstrate to the 1089 satisfaction of the office and the department that the applicant 1090 and the persons claimed as qualified employees meet the 1091 requirements of this section. 1092 (5) The total amount of tax credits under this section 1093 which may be approved by the office for all applicants is $10 1094 million, with $5 million available to be awarded in the 2011 1095 2012 fiscal year and $5 million available to be awarded in the 1096 2012-2013 fiscal year. The credit may be applied to corporate 1097 income tax liability due on returns for fiscal years beginning 1098 July 1, 2011, and July 1, 2012. 1099 (6) An unused tax credit amount that is granted under this 1100 section which is not fully used in the first year for which it 1101 becomes available, may be carried forward to the subsequent tax 1102 year. The carryover credit may be used in the subsequent year if 1103 the tax imposed by this chapter for such year exceeds the credit 1104 for such year under this section after applying the other 1105 credits and unused credit carryovers in the order provided in s. 1106 220.02(8). 1107 (7) A person who fraudulently claims a credit under this 1108 section is liable for repayment of the credit plus a mandatory 1109 penalty of 100 percent of the credit. Such person also commits a 1110 misdemeanor of the second degree, punishable as provided in s. 1111 775.082 or s. 775.083. 1112 (8) The office may adopt rules governing the manner and 1113 form of applications for the tax credit. The office may 1114 establish guidelines for making an affirmative showing of 1115 qualification for the tax credit under this section. 1116 (9) The department may adopt rules to administer this 1117 section, including rules relating to the creation of forms to 1118 claim a tax credit and examination and audit procedures required 1119 to administer this section. 1120 (10) This section expires June 30, 2012. However, a 1121 taxpayer that is awarded a tax credit in the second year of the 1122 program may carry forward any unused credit amount to the 1123 subsequent tax reporting period. Rules adopted by the department 1124 to administer this section shall remain valid as long as a 1125 taxpayer may use a credit against its corporate income tax 1126 liability. 1127 Section 10. Effective July 1, 2010, section 220.1899, 1128 Florida Statutes, is created to read: 1129 220.1899 Entertainment Industry Tax Credit.— 1130 (1) There shall be a credit allowed against the tax imposed 1131 by this chapter in the amounts approved by the Office of 1132 Tourism, Trade, and Economic Development pursuant to the 1133 entertainment industry financial incentives program in s. 1134 288.1254. 1135 (2) A qualified production company, as defined in s. 1136 288.1254(1)(j), which is awarded a tax credit against its 1137 qualified expenditures pursuant to s. 288.1254, for expenditures 1138 made between July 1, 2010, and June 30, 2015, may not claim a 1139 credit before July 1, 2011, regardless of when such credit is 1140 awarded. 1141 (3) To the extent that a credit amount exceeds the amount 1142 due on a return, the balance of the credit may be carried 1143 forward to a succeeding reporting period pursuant to s. 1144 288.1254(4)(e). 1145 Section 11. Effective July 1, 2010, section 220.191, 1146 Florida Statutes, is amended to read: 1147 220.191 Capital investment tax credit.— 1148 (1) DEFINITIONS.—For purposes of this section: 1149 (a) “Commencement of operations” means the beginning of 1150 active operations by a qualifying business of the principal 1151 function for which a qualifying project was constructed. 1152 (b) “Cumulative capital investment” means the total capital 1153 investment in land, buildings, and equipment made in connection 1154 with a qualifying project during the period from the beginning 1155 of construction of the project to the commencement of 1156 operations. 1157 (c) “Eligible capital costs” means all expenses incurred by 1158 a qualifying business in connection with the acquisition, 1159 construction, installation, and equipping of a qualifying 1160 project during the period from the beginning of construction of 1161 the project to the commencement of operations, including, but 1162 not limited to: 1163 1. The costs of acquiring, constructing, installing, 1164 equipping, and financing a qualifying project, including all 1165 obligations incurred for labor and obligations to contractors, 1166 subcontractors, builders, and materialmen. 1167 2. The costs of acquiring land or rights to land and any 1168 cost incidental thereto, including recording fees. 1169 3. The costs of architectural and engineering services, 1170 including test borings, surveys, estimates, plans and 1171 specifications, preliminary investigations, environmental 1172 mitigation, and supervision of construction, as well as the 1173 performance of all duties required by or consequent to the 1174 acquisition, construction, installation, and equipping of a 1175 qualifying project. 1176 4. The costs associated with the installation of fixtures 1177 and equipment; surveys, including archaeological and 1178 environmental surveys; site tests and inspections; subsurface 1179 site work and excavation; removal of structures, roadways, and 1180 other surface obstructions; filling, grading, paving, and 1181 provisions for drainage, storm water retention, and installation 1182 of utilities, including water, sewer, sewage treatment, gas, 1183 electricity, communications, and similar facilities; and offsite 1184 construction of utility extensions to the boundaries of the 1185 property. 1186 1187 Eligible capital costs shall not include the cost of any 1188 property previously owned or leased by the qualifying business. 1189 (d) “Income generated by or arising out of the qualifying 1190 project” means the qualifying project’s annual taxable income as 1191 determined by generally accepted accounting principles and under 1192 s. 220.13. 1193 (e) “Jobs” means full-time equivalent positions, as that 1194 term is consistent with terms used by the Agency for Workforce 1195 Innovation and the United States Department of Labor for 1196 purposes of unemployment tax administration and employment 1197 estimation, resulting directly from a project in this state. The 1198 term does not include temporary construction jobs involved in 1199 the construction of the project facility. 1200 (f) “Office” means the Office of Tourism, Trade, and 1201 Economic Development. 1202 (g) “Qualifying business” means a business that is 1203 designated as a qualified target industry business pursuant to 1204 s. 288.106(2)(t),whichestablishes a qualifying project in this 1205 state, andwhichis certified by the office to receive tax 1206 credits pursuant to this section. 1207 (h) “Qualifying project” means: 1208 1. A new or expanding facility in this state which creates 1209 at least 50100new jobs in this state, pays an annual average 1210 wage of at least 130 percent of the average private sector wage 1211 as defined in s. 288.106(2), makes a cumulative capital 1212 investment of at least $25 million in this state, and is a 1213 qualified target industry business pursuant to s. 288.106(2)(t) 1214in one of the high-impact sectors identified by Enterprise1215Florida, Inc., and certified by the office pursuant to s.1216288.108(6), including, but not limited to, aviation, aerospace,1217automotive, and silicon technology industries; or 12182.A new or expanded facility in this state which is1219engaged in a target industry designated pursuant to the1220procedure specified in s.288.106(1)(o) and which is induced by1221this credit to create or retain at least 1,000 jobs in this1222state, provided that at least 100 of those jobs are new, pay an1223annual average wage of at least 130 percent of the average1224private sector wage in the area as defined in s.288.106(1), and1225make a cumulative capital investment of at least $100 million1226after July 1, 2005. Jobs may be considered retained only if1227there is significant evidence that the loss of jobs is imminent.1228Notwithstanding subsection (2), annual credits against the tax1229imposed by this chapter shall not exceed 50 percent of the1230increased annual corporate income tax liability or the premium1231tax liability generated by or arising out of a project1232qualifying under this subparagraph. A facility that qualifies1233under this subparagraph for an annual credit against the tax1234imposed by this chapter may take the tax credit for a period not1235to exceed 5 years; or1236 2.3.A new or expanded headquarters facility in this state 1237 which locates in an enterprise zone and brownfield area and is 1238 induced by this credit to create at least 1,500 jobs thatwhich1239 on average pay at least 200 percent of the statewide average 1240 annual private sector wage, as published by the Agency for 1241 Workforce Innovation or its successor, and which new or expanded 1242 headquarters facility makes a cumulative capital investment in 1243 this state of at least $250 million. 1244 (2)(a) On or after July 1, 2010, a qualifying business that 1245 enters into an agreement with the office for a qualifying 1246 project shall receive an annual credit against the tax imposed 1247 by this chaptershall be grantedto any qualifying businessin 1248 an amount equal to a diminishing percentage5 percentof the 1249 eligible capital costs generated by a qualifying project during 1250 a 10-year, for aperiodnot to exceed 20 yearsbeginning with 1251 the commencement of operations of the project. The credit shall 1252 be awarded as follows: 15 percent of the eligible capital costs 1253 in each of the years 1 through 3; 10 percent in each of the 1254 years 4 through 7; and 5 percent each year in years 8 through 1255 10. An agreement for a qualifying project between a qualifying 1256 business and the office which was entered into before July 1, 1257 2010, is subject to the law in effect when the agreement was 1258 executed. Unless assigned as described in this subsection, the 1259 tax credit shall be granted against only the corporate income 1260 tax liability or the premium tax liability generated by or 1261 arising out of the qualifying project, and the sum of all tax 1262 credits provided pursuant to this section mayshallnot exceed 1263 100 percent of the eligible capital costs of the project. In no 1264 event may any credit granted under this section be carried 1265 forward or backward by any qualifying business with respect to a 1266 subsequent or prior year. The annual tax credit granted under 1267 this section mayshallnot exceed the following percentages of 1268 the annual corporate income tax liability or the premium tax 1269 liability generated by or arising out of a qualifying project: 1270 1. One hundred percent for a qualifying project which 1271 results in a cumulative capital investment of at least $100 1272 million. 1273 2. Seventy-five percent for a qualifying project which 1274 results in a cumulative capital investment of at least $50 1275 million but less than $100 million. 1276 3. Fifty percent for a qualifying project which results in 1277 a cumulative capital investment of at least $25 million but less 1278 than $50 million. 1279 (b) A qualifying project thatwhichresults in a cumulative 1280 capital investment of less than $25 million is not eligible for 1281 the capital investment tax credit. However, an insurance company 1282 claiming a credit against premium tax liability under this 1283 program isshallnotberequired to pay any additional 1284 retaliatory tax levied pursuant to s. 624.5091 as a result of 1285 claiming such credit. Because credits under this section are 1286 available to an insurance company, s. 624.5091 does not limit 1287 such credit in any manner. 1288 (c) A qualifying business that establishes a qualifying 1289 project that includes locating a new solar panel manufacturing 1290 facility in this state whichthatgenerates a minimum of 400 1291 jobs within 6 months after commencement of operations with an 1292 average salary of at least $50,000 may assign or transfer the 1293 annual credit, or any portion thereof, granted under this 1294 section to any other business. However, the amount of the tax 1295 credit that may be transferred in any year shall be the lesser 1296 of the qualifying business’s state corporate income tax 1297 liability for that year, as limited by the percentages 1298 applicable under paragraph (a) and as calculated prior to taking 1299 any credit pursuant to this section, or the credit amount 1300 granted for that year. A business receiving the transferred or 1301 assigned credits may use the credits only in the year received, 1302 and the credits may not be carried forward or backward. To 1303 perfect the transfer, the transferor shall provide the 1304 department with a written transfer statement notifying the 1305 department of the transferor’s intent to transfer the tax 1306 credits to the transferee; the date the transfer is effective; 1307 the transferee’s name, address, and federal taxpayer 1308 identification number; the tax period; and the amount of tax 1309 credits to be transferred. The department shall, upon receipt of 1310 a transfer statement conforming to the requirements of this 1311 paragraph, provide the transferee with a certificate reflecting 1312 the tax credit amounts transferred. A copy of the certificate 1313 must be attached to each tax return for which the transferee 1314 seeks to apply such tax credits. 1315 (3)(a) Notwithstanding subsection (2), an annual credit 1316 against the tax imposed by this chapter shall be granted to a 1317 qualifying business thatwhichestablishes a qualifying project 1318 pursuant to subparagraph (1)(h)2.(1)(h)3., in an amount equal 1319 to the lesser of $15 million or 5 percent of the eligible 1320 capital costs made in connection with a qualifying project, for 1321 a period not to exceed 20 years beginning with the commencement 1322 of operations of the project. The tax credit shall be granted 1323 against the corporate income tax liability of the qualifying 1324 business and as further provided in paragraph (c). The total tax 1325 credit provided pursuant to this subsection shall be equal to no 1326 more than 100 percent of the eligible capital costs of the 1327 qualifying project. 1328 (b) If the credit granted under this subsection is not 1329 fully used in any one year because of insufficient tax liability 1330 on the part of the qualifying business, the unused amount may be 1331 carried forward for a period not to exceed 20 years after the 1332 commencement of operations of the project. The carryover credit 1333 may be used in a subsequent year when the tax imposed by this 1334 chapter for that year exceeds the credit for which the 1335 qualifying business is eligible in that year under this 1336 subsection after applying the other credits and unused 1337 carryovers in the order provided by s. 220.02(8). 1338 (c) The credit granted under this subsection may be used in 1339 whole or in part by the qualifying business or any corporation 1340 that iseithera member of that qualifying business’s affiliated 1341 group of corporations, is a related entity taxable as a 1342 cooperative under subchapter T of the Internal Revenue Code, or, 1343 if the qualifying business is an entity taxable as a cooperative 1344 under subchapter T of the Internal Revenue Code, is related to 1345 the qualifying business. Any entity related to the qualifying 1346 business may continue to file as a member of a Florida-nexus 1347 consolidated group pursuant to a prior election made under s. 1348 220.131(1), Florida Statutes (1985), even if the parent of the 1349 group changes due to a direct or indirect acquisition of the 1350 former common parent of the group. Any credit maycanbe used by 1351 any of the affiliated companies or related entities referenced 1352 in this paragraph to the same extent as it could have been used 1353 by the qualifying business. However, any such use doesshallnot 1354 operate to increase the amount of the credit or extend the 1355 period within which the credit must be used. 1356 (4) Prior to receiving tax credits pursuant to this 1357 section, a qualifying business must achieve and maintain the 1358 minimum employment goals beginning with the commencement of 1359 operations at a qualifying project and continuing each year 1360 thereafter during which tax credits are available pursuant to 1361 this section. However, the office may approve a prorated tax 1362 credit amount for a qualifying business that enters into an 1363 agreement with the office on or after July 1, 2010, has 1364 satisfied the capital investment and average wage requirements 1365 but that has not met the employment requirements because of 1366 market conditions. The prorated tax refund shall be calculated 1367 by multiplying the tax refund amount for which the qualifying 1368 business would have been eligible if all applicable requirements 1369 had been satisfied by the percentage of the average employment 1370 specified in the tax refund agreement which was actually 1371 achieved. 1372 (5) Applications shall be reviewed and certified pursuant 1373 to s. 288.061. The office, upon a recommendation by Enterprise 1374 Florida, Inc., shall first certify a business as eligible to 1375 receive tax credits pursuant to this section prior to the 1376 commencement of operations of a qualifying project, and such 1377 certification shall be transmitted to the Department of Revenue. 1378 Upon receipt of the certification, the Department of Revenue 1379 shall enter into a written agreement with the qualifying 1380 business specifying, at a minimum, the method by which income 1381 generated by or arising out of the qualifying project will be 1382 determined. 1383 (6) The office, in consultation with Enterprise Florida, 1384 Inc., mayis authorized todevelop the necessary guidelines and 1385 application materials for the certification process described in 1386 subsection(5). 1387 (7)It shall be the responsibility ofThe qualifying 1388 business has the responsibility to affirmatively demonstrate to 1389 the satisfaction of the department and the officeof Revenue1390 that such business meets the job creation and capital investment 1391 requirements of this section. 1392 (8) The departmentof Revenuemay specify by rule the 1393 methods by which a qualifying project’s pro forma annual taxable 1394 income is determined. 1395 (9) A business that receives a tax credit pursuant to this 1396 section is not eligible for a tax refund under the tax refund 1397 program for qualified target industry businesses, s. 288.106. 1398 Section 12. Effective July 1, 2010, paragraph (a) of 1399 subsection (3) of section 288.095, Florida Statutes, is amended 1400 to read: 1401 288.095 Economic Development Trust Fund.— 1402 (3)(a) The Office of Tourism, Trade, and Economic 1403 Development may approve applications for certification pursuant 1404 to ss. 288.1045(3) and 288.106.However, the total state share1405of tax refund payments scheduled in all active certifications1406for fiscal year 2001-2002 may not exceed $30 million.The total 1407 state share of tax refund payments for active certificationsfor1408 eachsubsequentfiscal year may not exceed $100$35million. 1409 Section 13. Effective July 1, 2010, section 288.106, 1410 Florida Statutes, is reordered and amended to read: 1411 288.106 Tax refund program for qualified target industry 1412 businesses.— 1413 (1) LEGISLATIVE FINDINGS AND DECLARATIONS.—The Legislature 1414 finds that retaining and expanding existing businesses in 1415 Florida, encouraging the creation of new businesses in Florida, 1416 attracting new businesses from out of state, and generally 1417 providing conditions favorable for the growth of target 1418 industries creates high-quality, high-wage employment 1419 opportunities for the citizens of this state and strengthens 1420 Florida’s economic foundation. The Legislature also finds that 1421 incentives that are narrowly focused in application and scope 1422 tend to be more effective at achieving the state’s economic 1423 development goals. Further, the Legislature finds that higher 1424 wage jobs reduce the state’s share of hidden costs such as 1425 public assistance and subsidized health care associated with 1426 low-wage jobs. Therefore, the Legislature declares that it is 1427 the policy of this state to encourage the growth of higher-wage 1428 jobs and a diverse economic base by providing state tax refunds 1429 to qualified target industry businesses that originate or expand 1430 in this state or that relocate to this state. 1431 (2)(1)DEFINITIONS.—As used in this section: 1432 (a) “Account” means the Economic Development Incentives 1433 Account within the Economic Development Trust Fund established 1434 under s. 288.095. 1435 (c)(b)“Average area private sector wagein the area” means 1436 the statewide private sector average wage,orthe average of all 1437 private sector wages and salaries in the county, or the average 1438 of all private sector wages and salaries in the standard 1439 metropolitan area, as determined by the governing body of the 1440 county or municipality in which the business will beislocated. 1441 (d)(c)“Business” means an employing unit, as defined in s. 1442 443.036, which is registered for unemployment compensation 1443 purposes with the state agency providing unemployment tax 1444 collection services under contract with the Agency for Workforce 1445 Innovation through an interagency agreement pursuant to s. 1446 443.1316, or a subcategory or division of an employing unit 1447 which is accepted by the state agency providing unemployment tax 1448 collection services as a reporting unit. 1449 (e)(d)“Corporate headquarters business” means an 1450 international, national, or regional headquarters office of a 1451 multinational or multistate business enterprise or national 1452 trade association, whether separate from or connected with other 1453 facilities used by such business. 1454 (n)(e)“Office” means the Office of Tourism, Trade, and 1455 Economic Development. 1456 (g)(f)“Enterprise zone” means an area designated as an 1457 enterprise zone pursuant to s. 290.0065. 1458 (h)(g)“Expansion of an existing business” means the 1459 expansion of an existing Florida business by or through 1460 additions to real and personal property, resulting in a net 1461 increase in employment of not less than 10 percent at such 1462 business. 1463 (i)(h)“Fiscal year” means the fiscal year of the state. 1464 (j)(i)“Jobs” means full-time equivalent positions, as that 1465 term is consistent with terms used by the Agency for Workforce 1466 Innovation and the United States Department of Labor for 1467 purposes of unemployment compensation tax administration and 1468 employment estimation, resulting directly from a project in this 1469 state. The term does not include temporary construction jobs 1470 involved with the construction of facilities for the project or 1471 any jobs previously included in any application for tax refunds 1472 under s. 288.1045 or this section. 1473 (k)(j)“Local financial support” means funding from local 1474 sources, public or private, which is paid to the Economic 1475 Development Trust Fund and which is equal to 20 percent of the 1476 annual tax refund for a qualified target industry business. A 1477 qualified target industry business may not provide, directly or 1478 indirectly, more than 5 percent of such funding in any fiscal 1479 year. The sources of such funding may not include, directly or 1480 indirectly, state funds appropriated from the General Revenue 1481 Fund or any state trust fund, excluding tax revenues shared with 1482 local governments pursuant to law. 1483 (l)(k)“Local financial support exemption option” means the 1484 option to exercise an exemption from the local financial support 1485 requirement available to any applicant whose project is located 1486 in a brownfield area or a rural communitycounty with a1487population of 75,000 or fewer or a county with a population of1488125,000 or fewer which is contiguous to a county with a1489population of 75,000 or fewer. Any applicant that exercises this 1490 option isshallnotbeeligible for more than 80 percent of the 1491 total tax refunds allowed such applicant under this section. 1492 (m)(l)“New business” means a business that applies for the 1493 qualified target industry refund program before beginning 1494 operationswhich heretofore did not existin this state and will 1495 begin, first beginningoperations on a site that was not used 1496 for the operations of a related entity within the 48 months 1497 before the submission of the applicationlocated in this state1498andclearlyseparate from any other commercial or industrial1499operations owned by the same business. 1500 (o)(m)“Project” means the creation of a new business or 1501 expansion of an existing business. 1502 (f)(n)“Director” means the Director of the Office of 1503 Tourism, Trade, and Economic Development. 1504 (t)(o)“Target industry business” means a corporate 1505 headquarters business or any business that is engaged in one of 1506 the target industries identified pursuant to the following 1507 criteria developed by the office in consultation with Enterprise 1508 Florida, Inc.: 1509 1. Future growth.—Industry forecasts should indicate strong 1510 expectation for future growth in both employment and output, 1511 according to the most recent available data. PreferenceSpecial1512considerationshould be given to businesses that export goods or 1513 servicesFlorida’s growing accessto international markets or to 1514 businesses that replace domestic and internationalreplacing1515 imports of goods or services. 1516 2. Stability.—The industry should not be subject to 1517 periodic layoffs, whether due to seasonality or sensitivity to 1518 volatile economic variables such as weather. The industry should 1519 also be relatively resistant to recession, so that the demand 1520 for products of this industry is not typicallynecessarily1521 subject to decline during an economic downturn. 1522 3. High wage.—The industry should pay higherrelatively1523highwages compared to statewide or area averages. 1524 4. Market and resource independent.—The location of 1525 industry businesses should not be dependent on Florida markets 1526 or resources as indicated by industry analysis, with the 1527 exception of businesses in the renewable-energy industry. 1528Special consideration should be given to the development of1529strong industrial clusters which include defense and homeland1530security businesses.1531 5. Industrial base diversification and strengthening.—The 1532 industry should contribute toward expanding or diversifying the 1533 state’s or area’s economic base, as indicated by analysis of 1534 employment and output shares compared to national and regional 1535 trends. PreferenceSpecial considerationshould be given to 1536 industries that strengthen regional economies by adding value to 1537 basic products or building regional industrial clusters as 1538 indicated by industry analysis. Additionally, preference should 1539 be given to the development of strong industrial clusters that 1540 include defense and homeland security businesses. 1541 6. Economic benefits.—The industry is expected toshould1542 have strong positive impacts on or benefits to the state orand1543 regional economies. 1544 1545 The office, in consultation with Enterprise Florida, Inc., shall 1546 develop a list of such target industries annually and submit 1547 such list as part of the final agency legislative budget request 1548 submitted pursuant to s. 216.023(1). A target industry business 1549 may not include any industry engaged in retail activities; any 1550 electrical utility company; any phosphate or other solid 1551 minerals severance, mining, or processing operation; any oil or 1552 gas exploration or production operation;orany businessfirm1553 subject to regulation by the Division of Hotels and Restaurants 1554 of the Department of Business and Professional Regulation; or 1555 any business within NAICS code 56, administrative support 1556 services, including call centers and customer account service 1557 centers. 1558 (u)(p)“Taxable year” means taxable year as defined in s. 1559 220.03(1)(y). 1560 (p)(q)“Qualified target industry business” means a target 1561 industry business that has been approved by the director to be 1562 eligible for tax refunds pursuant to this section. 1563 (q) “Return on investment” means the gain in state revenues 1564 as a percentage of the state’s investment. The state’s 1565 investment includes state grants, tax exemptions, tax refunds, 1566 tax credits, and other state incentives. Return on investment is 1567 expressed mathematically as follows: 1568 1569 Return on investment = (gain in state revenues - state’s 1570 investment)/state’s investment 1571 1572(r)“Rural county” means a county with a population of157375,000 or fewer or a county with a population of 100,000 or1574fewer which is contiguous to a county with a population of157575,000 or fewer.1576 (r)(s)“Rural city” means a city havingwitha population 1577 of 10,000 or fewerless, or a city havingwitha population of 1578 greater than 10,000 but fewerlessthan 20,000 which has been 1579 determined by the officeof Tourism, Trade, and Economic1580Developmentto have economic characteristics such as, but not 1581 limited to, a significant percentage of residents on public 1582 assistance, a significant percentage of residents with income 1583 below the poverty level, or a significant percentage of the 1584 city’s employment base in agriculture-related industries. 1585 (s)(t)“Rural community” means: 1586 1. A county havingwitha population of 75,000 or fewer. 1587 2. A county havingwitha population of 125,000 or fewer 1588 which is contiguous to a county havingwitha population of 1589 75,000 or fewer. 1590 3. A municipality within a county described in subparagraph 1591 1. or subparagraph 2. 1592 1593 For purposes of this paragraph, population shall be determined 1594 in accordance with the most recent official estimate pursuant to 1595 s. 186.901. 1596 (b)(u)“Authorized local economic development agency” means 1597 aanypublic or private entity, including those defined in s. 1598 288.075, authorized by a county or municipality to promote the 1599 general business or industrial interests of that county or 1600 municipality. 1601 (3)(2)TAX REFUND; ELIGIBLE AMOUNTS.— 1602 (a) There shall be allowed, from the account, a refund to a 1603 qualified target industry business for the amount of eligible 1604 taxes certified by the director which were paid by thesuch1605 business. The total amount of refunds for all fiscal years for 1606 each qualified target industry business must be determined 1607 pursuant to subsection (4)(3). The annual amount of a refund to 1608 a qualified target industry business must be determined pursuant 1609 to subsection (6)(5). 1610 (b)1. Upon approval by the director, a qualified target 1611 industry business shall be allowed tax refund payments equal to 1612 $3,000 times the number of jobs specified in the tax refund 1613 agreement under subparagraph (5)(a)1.(4)(a)1., or equal to 1614 $6,000 times the number of jobs if the project is located in a 1615 rural county or an enterprise zone. 1616 2.Further,A qualified target industry business shall be 1617 allowed additional tax refund payments equal to $1,000 times the 1618 number of jobs specified in the tax refund agreement under 1619 subparagraph (5)(a)1.(4)(a)1.,if such jobs pay an annual 1620 average wage of at least 150 percent of the average area private 1621 sector wagein the area, or equal to $2,000 times the number of 1622 jobs if such jobs pay an annual average area wage of at least 1623 200 percent of the average area private sector wagein the area. 1624 3. A qualified target industry business shall be allowed a 1625 tax refund payment in addition to the payments authorized in 1626 sub-subparagraphs 1. and 2. equal to $2,000 times the number of 1627 jobs specified in the tax refund agreement under subparagraph 1628 (5)(a)1., for one of the following: 1629 a. Projects classified as a corporate headquarters for 1630 businesses that did not exist in this state before applying for 1631 certification as a qualified target industry business or 1632 corporate headquarters for businesses in the following 1633 industries: renewable energy, as defined in s. 366.91(2)(d); 1634 transportation equipment manufacturing; life sciences; financial 1635 services; or information technology. 1636 b. Businesses that increase exports of their goods through 1637 a Florida seaport or a Florida airport by at least 10 percent in 1638 value or tonnage in each of the years that they receive a tax 1639 credit under this section. For purposes of this sub 1640 subparagraph, Florida seaports are limited to the ports of 1641 Jacksonville, Tampa, Port Everglades, Miami, Port Canaveral, Ft. 1642 Pierce, Palm Beach, Port Manatee, Port St. Joe, Panama City, St. 1643 Petersburg, Pensacola, Fernandina, and Key West. 1644 4. A qualified target industry business shall be allowed a 1645 tax refund in addition to the payments authorized in sub 1646 subparagraphs 1., 2., and 3. equal to $1,000 times the number of 1647 jobs specified in the tax refund agreement under subparagraph 1648 (5)(a)1., if: 1649 a. The local financial support is equal to that of the 1650 state’s incentive award under subparagraph (3)(b)1.; or 1651 b. The business is employing, among those jobs specified in 1652 the tax refund agreement under subparagraph (5)(a)1., a Florida 1653 resident who has been unemployed and who was determined to be 1654 monetarily eligible for unemployment compensation benefits by 1655 the Agency for Workforce Innovation for a benefit year beginning 1656 on or after January 1, 2009. These employees must perform duties 1657 connected to the operations of the eligible business on a 1658 regular, full-time basis for an average of at least 36 hours per 1659 week and for at least 12 months before an eligible business 1660 files for the tax credit. 1661 (c) A qualified target industry business may not receive 1662 refund payments of more than 25 percent of the total tax refunds 1663 specified in the tax refund agreement under subparagraph 1664 (5)(a)1.(4)(a)1.in any fiscal year. Further, a qualified 1665 target industry business may not receive more than $1.5 million 1666 in refunds under this section in any single fiscal year, or more 1667 than $2.5 million in any single fiscal year if the project is 1668 located in an enterprise zone. A qualified target industry 1669 business may not receive more than $5 million in refund payments 1670 under this section in all fiscal years, or more than $7.5 1671 million if the project is located in an enterprise zone.Funds1672made available pursuant to this section may not be expended in1673connection with the relocation of a business from one community1674to another community in this state unless the Office of Tourism,1675Trade, and Economic Development determines that without such1676relocation the business will move outside this state or1677determines that the business has a compelling economic rationale1678for the relocation and that the relocation will create1679additional jobs.1680 (d)(c)After entering into a tax refund agreement under 1681 subsection (5)(4), a qualified target industry business may: 1682 1. Receive refunds from the account for the following taxes 1683 due and paid by that business beginning with the first taxable 1684 year of the business which begins after entering into the 1685 agreement: 1686 a. Corporate income taxes under chapter 220. 1687 b. Insurance premium tax under s. 624.509. 1688 2. Receive refunds from the account for the following taxes 1689 due and paid by that business after entering into the agreement: 1690 a. Taxes on sales, use, and other transactions under 1691 chapter 212. 1692 b. Intangible personal property taxes under chapter 199. 1693 c. Emergency excise taxes under chapter 221. 1694 d. Excise taxes on documents under chapter 201. 1695 e. Ad valorem taxes paid, as defined in s. 220.03(1). 1696 f. State communications services taxes administered under 1697 chapter 202. This provision does not apply to the gross receipts 1698 tax imposed under chapter 203 and administered under chapter 202 1699 or the local communications services tax authorized under s. 1700 202.19. 1701 1702The addition of state communications services taxes administered1703under chapter 202 is remedial in nature and retroactive to1704October 1, 2001. The office may make supplemental tax refund1705payments to allow for tax refunds for communications services1706taxes paid by an eligible qualified target industry business1707after October 1, 2001.1708 (e)(d)However, a qualified target industry business may 1709 not receive a refund under this section for any amount of 1710 credit, refund, or exemption granted to that business for any of 1711 thesuchtaxes listed in paragraph (d). If a refund for such 1712 taxes is provided by the office, which taxes are subsequently 1713 adjusted by the application of any credit, refund, or exemption 1714 granted to the qualified target industry business other than as 1715 provided in this section, the business shall reimburse the 1716 account for the amount of that credit, refund, or exemption. A 1717 qualified target industry business shall notify and tender 1718 payment to the office within 20 days after receiving any credit, 1719 refund, or exemption other than one provided in this section. 1720 (f) Refunds made available pursuant to this section may not 1721 be expended in connection with the relocation of a business from 1722 one community to another community in this state unless the 1723 office determines that without such relocation the business will 1724 move outside this state, or determines that the business has a 1725 compelling economic rationale for the relocation and that the 1726 relocation will create additional jobs. 1727 (g)(e)A qualified target industry business that 1728 fraudulently claims a refund under this section: 1729 1. Is liable for repayment of the amount of the refund to 1730 the account, plus a mandatory penalty in the amount of 200 1731 percent of the tax refund which shall be deposited into the 1732 General Revenue Fund. 1733 2. CommitsIs guilty ofa felony of the third degree, 1734 punishable as provided in s. 775.082, s. 775.083, or s. 775.084. 1735 (4)(3)APPLICATION AND APPROVAL PROCESS.— 1736 (a) To apply for certification as a qualified target 1737 industry business under this section, the business must file an 1738 application with the office before the business decideshas made1739the decisionto locatea new businessin this state or before 1740 the business decideshad made the decisionto expand itsan1741 existing operationsbusinessin this state. The application must 1742shallinclude, but needisnot be limited to, the following1743information: 1744 1. The applicant’s federal employer identification number 1745 and, if applicable,the applicant’sstate sales tax registration 1746 number. 1747 2. The proposed permanent location of the applicant’s 1748 facility in this state at which the project is or is to be 1749 located. 1750 3. A description of the type of business activity or 1751 product covered by the project, including a minimum of a five 1752 digit NAICS code for all activities included in the project. As 1753 used in this paragraph, “NAICS” means those classifications 1754 contained in the North American Industry Classification System, 1755 as published in 2007 by the Office of Management and Budget, 1756 Executive Office of the President, and updated periodically. 1757 4. The proposed number of net new full-time equivalent 1758 Florida jobs at the qualified target industry business as of 1759 December 31 of each year included in the project and the average 1760 wage of those jobs. If more than one type of business activity 1761 or product is included in the project, the number of jobs and 1762 average wage for those jobs must be separately stated for each 1763 type of business activity or product. 1764 5. The total number of full-time equivalent employees 1765 employed by the applicant in this state, if applicable. 1766 6. The anticipated commencement date of the project. 1767 7. A brief statement explainingconcerningthe role that 1768 the estimated tax refunds to be requested will play in the 1769 decision of the applicant to locate or expand in this state. 1770 8. An estimate of the proportion of the sales resulting 1771 from the project that will be made outside this state. 1772 9. An estimate of the proportion of the cost of the 1773 machinery and equipment, and any other resources necessary in 1774 the development of its product or service, to be used by the 1775 business in its Florida operations which will be purchased 1776 outside this state. 1777 10.9.A resolution adopted by the governing board of the 1778 county or municipality in which the project will be located, 1779 whichresolutionrecommends that the projectcertain types of1780businessesbe approved as a qualified target industry business 1781 and specifiesstatesthatthecommitments of local financial 1782 support necessary for the target industry business exist. In 1783 advance of the passage of such resolution, the office may also 1784 accept an official letter from an authorized local economic 1785 development agency that endorses the proposed target industry 1786 project and pledges that sources of local financial support for 1787 such project exist. For the purposes of making pledges of local 1788 financial support under this subsection, the authorized local 1789 economic development agency shall be officially designated by 1790 the passage of a one-time resolution by the local governing 1791 authority. 1792 11.10.Any additional information requested by the office. 1793 (b) To qualify for review by the office, the application of 1794 a target industry business must, at a minimum, establish the 1795 following to the satisfaction of the office: 1796 1.a. The jobs proposed to be createdprovidedunder the 1797 application, pursuant to subparagraph (a)4., must pay an 1798 estimated annual average wage equaling at least 115 percent of 1799 the average area private sector wagein the areawhere the 1800 business is to be locatedor the statewide private sector1801average wage. The governing body of the county where the 1802 qualified target industry business is to be located shall notify 1803 the office and Enterprise Florida, Inc., which calculation of 1804 the average area private sector wage must be used as the basis 1805 for the business’ wage commitment. In determining the average 1806 annual wage, the office shall include only new proposed jobs, 1807 and wages for existing jobs shall be excluded from this 1808 calculation. 1809 b. The office may waive the average wage requirement at the 1810 request of the local governing body recommending the project and 1811 Enterprise Florida, Inc. The director may waive the wage 1812 requirementmay only be waivedfor a project located in a 1813 brownfield area designated under s. 376.80 or in a rural city, 1814 rural community,orcounty, orin anenterprise zoneandonly if 1815whenthe merits of the individual project or the specific 1816 circumstances in the community in relationship to the project 1817 warrant such action. If the local governing body and Enterprise 1818 Florida, Inc., make such a recommendation, it must be 1819 transmitted in writing and the specific justification for the 1820 waiver recommendation must be explained. If the director elects 1821 to waive the wage requirement, the waiver must be stated in 1822 writing and the reasons for granting the waiver must be 1823 explained. 1824 2. The target industry business’s project must result in 1825 the creation of at least 10 jobs at thesuchproject and, if an 1826 expansion of an existing business, must result in ana net1827 increase in employment of at least 10 percent at the business. 1828Notwithstanding the definition of the term “expansion of an1829existing business” in paragraph (1)(g),At the request of the 1830 local governing body recommending the project and Enterprise 1831 Florida, Inc., the office may waive this requirement for a 1832 business in a rural community or enterprise zonedefine an1833“expansion of an existing business” in a rural community or an1834enterprise zone as the expansion of a business resulting in a1835net increase in employment of less than 10 percent at such1836businessif the merits of the individual project or the specific 1837 circumstances in the community in relationship to the project 1838 warrant such action. If the local governing body and Enterprise 1839 Florida, Inc., make such a request, the request must be 1840 transmitted in writing and the specific justification for the 1841 request must be explained. If the director elects to grant the 1842 request, the grant must be stated in writing and the reason for 1843 granting the request must be explained. 1844 3. The business activity or product for the applicant’s 1845 project is within an industryor industries that have been1846 identified by the office as a target industry businessto be1847high-value-added industriesthat contributescontribute to the1848area andto the economic growth of the state and the region in 1849 which it is located, that producesproducea higher standard of 1850 living for residents of this state in the new global economy, or 1851 that can be shown to make an equivalent contribution to the area 1852 and state’s economic progress.The director must approve1853requests to waive the wage requirement for brownfield areas1854designated under s.376.80unless it is demonstrated that such1855action is not in the public interest.1856 (c) Each application meeting the requirements of paragraph 1857 (b) must be submitted to the office for determination of 1858 eligibility. The office shall review and evaluate each 1859 application based on, but not limited to, the following 1860 criteria: 1861 1. Expected contributions to the state economy, consistent 1862 with the state strategic economic development plan adopted by 1863 Enterprise Florida, Inc., taking into account the long-term1864effects of the project and of the applicant on the state1865economy.1866 2. The return on investment of the proposed award under the 1867 qualified target industry incentive program and the return on 1868 investment for all state incentives proposed for the project 1869economic benefit of the jobs created by the project in this1870state, taking into account the cost and average wage of each job1871created. 1872 3. The amount of capital investment to be made by the 1873 applicant in this state. 1874 4. The local financial commitment and support for the 1875 project. 1876 5. The effect of the project on the unemployment rate in 1877local community, taking into account the unemployment rate for1878 the county where the project will be located. 1879 6. The effect of the awardany tax refunds granted pursuant1880to this sectionon the viability of the project and the 1881 probability that the project wouldwillbe undertaken in this 1882 state if such tax refunds are granted to the applicant, taking1883into account the expected long-term commitment of the applicant1884to economic growth and employment in this state. 1885 7. The expected long-term commitment of the applicant to 1886 economic growth and employment to this state resulting from the 1887 project. 1888 8. A review of the business’s past activities in this state 1889 or other states, including whether such business has been 1890 subjected to criminal or civil fines and penalties. This 1891 subparagraph does not require the disclosure of confidential 1892 information. 1893 (d) Applications shall be reviewed and certified pursuant 1894 to s. 288.061. The office shall include in its review 1895 projections of the tax refunds the business would be eligible to 1896 receive in each fiscal year based on the creation and 1897 maintenance of the net new Florida jobs specified in 1898 subparagraph (a)4. as of December 31 of the preceding state 1899 fiscal year. If appropriate, the director shall enter into a 1900 written agreement with the qualified target industry business 1901 pursuant to subsection (5)(4). 1902 (e) The director may not certify any target industry 1903 business as a qualified target industry business if the value of 1904 tax refunds to be included in that letter of certification 1905 exceeds the available amount of authority to certify new 1906 businesses as determined in s. 288.095(3). However, if the 1907 commitments of local financial support represent less than 20 1908 percent of the eligible tax refund payments, or to otherwise 1909 preserve the viability and fiscal integrity of the program, the 1910 director may certify a qualified target industry business to 1911 receive tax refund payments of less than the allowable amounts 1912 specified in paragraph (3)(b)(2)(b). A letter of certification 1913 that approves an application must specify the maximum amount of 1914 tax refund that will be available to the qualified industry 1915 business in each fiscal year and the total amount of tax refunds 1916 that will be available to the business for all fiscal years. 1917 (f) This section does not create a presumption that an 1918 applicant shall receive any tax refunds under this section. 1919 However, the office may issue nonbinding opinion letters, upon 1920 the request of prospective applicants, as to the applicants’ 1921 eligibility and the potential amount of refunds. 1922 (5)(4)TAX REFUND AGREEMENT.— 1923 (a) Each qualified target industry business must enter into 1924 a written agreement with the office which specifies, at a 1925 minimum: 1926 1. The total number of full-time equivalent jobs in this 1927 state that will be dedicated to the project, the average wage of 1928 those jobs, the definitions that will apply for measuring the 1929 achievement of these terms during the pendency of the agreement, 1930 and a time schedule or plan for when such jobs will be in place 1931 and active in this state. 1932 2. The maximum amount of tax refunds which the qualified 1933 target industry business is eligible to receive on the project 1934 and the maximum amount of a tax refund that the qualified target 1935 industry business is eligible to receive for each fiscal year, 1936 based on the job creation and maintenance schedule specified in 1937 subparagraph 1. 1938 3. That the office may review and verify the financial and 1939 personnel records of the qualified target industry business to 1940 ascertain whether that business is in compliance with this 1941 section. 1942 4. The date by which, in each fiscal year, the qualified 1943 target industry business may file a claim under subsection (6) 1944(5)to be considered to receive a tax refund in the following 1945 fiscal year. 1946 5. That local financial support will be annually available 1947 and will be paid to the account. The director may not enter into 1948 a written agreement with a qualified target industry business if 1949 the local financial support resolution is not passed by the 1950 local governing authority within 90 days after he or she has 1951 issued the letter of certification under subsection (4)(3). 1952 (b) Compliance with the terms and conditions of the 1953 agreement is a condition precedent for the receipt of a tax 1954 refund each year. The failure to comply with the terms and 1955 conditions of the tax refund agreement results in the loss of 1956 eligibility for receipt of all tax refunds previously authorized 1957 under this section and the revocation by the director of the 1958 certification of the business entity as a qualified target 1959 industry business, unless the business is eligible to receive 1960 and elects to accept a prorated refund under paragraph (6)(e) 1961(5)(d)or the office grants the business an economic recovery 1962 extensioneconomic-stimulus exemption. 1963 1. A qualified target industry business may submit, in 1964 writing, a request to the office for an economic recovery 1965 extensioneconomic-stimulus exemption. The request must provide 1966 quantitative evidence demonstrating how negative economic 1967 conditions in the business’s industry, the effects of the impact 1968 of a named hurricane or tropical storm, or specific acts of 1969 terrorism affecting the qualified target industry business have 1970 prevented the business from complying with the terms and 1971 conditions of its tax refund agreement. 1972 2. Upon receipt of a request under subparagraph 1., the 1973 director hasshall have45 days to notify the requesting 1974 business, in writing, if its extensionexemptionhas been 1975 granted or denied. In determining if an exemption should be 1976 granted, the director shall consider the extent to which 1977 negative economic conditions in the requesting business’s 1978 industry have occurred in the state or the effects of the impact 1979 of a named hurricane or tropical storm or specific acts of 1980 terrorism affecting the qualified target industry business have 1981 prevented the business from complying with the terms and 1982 conditions of its tax refund agreement. The office shall 1983 consider current employment statistics for this state by 1984 industry, including whether the business’s industry had 1985 substantial job loss during the prior year, when determining 1986 whether an exemption shall be granted. 1987 3. As a condition for receiving a prorated refund under 1988 paragraph (6)(e)(5)(d)or an economic recovery extension 1989economic-stimulus exemptionunder this paragraph, a qualified 1990 target industry business must agree to renegotiate its tax 1991 refund agreement with the office to, at a minimum, ensure that 1992 the terms of the agreement comply with current law and office 1993 procedures governing application for and award of tax refunds. 1994 Upon approving the award of a prorated refund or granting an 1995 economic recovery extensioneconomic-stimulus exemption, the 1996 office shall renegotiate the tax refund agreement with the 1997 business as required by this subparagraph. When amending the 1998 agreement of a business receiving an economic recovery extension 1999economic-stimulus exemption, the office may extend the duration 2000 of the agreement for a period not to exceed 2 years. 2001 4. A qualified target industry business may submit a 2002 request for an economic recovery extensioneconomic-stimulus2003exemptionto the office in lieu of any tax refund claim 2004 scheduled to be submitted after January 1, 2009, but before July 2005 1, 20122011. 2006 5. A qualified target industry business that receives an 2007 economic recovery extensioneconomic-stimulus exemptionmay not 2008 receive a tax refund for the period covered by the extension 2009exemption. 2010 (c) The agreement must be signed by the director and by an 2011 authorized officer of the qualified target industry business 2012 within 120 days after the issuance of the letter of 2013 certification under subsection (4)(3), but not before passage 2014 and receipt of the resolution of local financial support. The 2015 office may grant an extension of this period at the written 2016 request of the qualified target industry business. 2017 (d) The agreement must contain the following legend, 2018 clearly printed on its face in bold type of not less than 10 2019 points in size: “This agreement is neither a general obligation 2020 of the State of Florida, nor is it backed by the full faith and 2021 credit of the State of Florida. Payment of tax refunds isare2022 conditioned on and subject to specific annual appropriations by 2023 the Florida Legislatureof moneyssufficient to pay amounts 2024 authorized in section 288.106, Florida Statutes.” 2025 (6)(5)ANNUAL CLAIM FOR REFUND.— 2026 (a) To be eligible to claim any scheduled tax refund, a 2027 qualified target industry business that has entered into a tax 2028 refund agreement with the office under subsection (5)(4)must 2029 apply by January 31 of each fiscal year to the office for the 2030 tax refund scheduled to be paid from the appropriation for the 2031 fiscal year that begins on July 1 following the January 31 2032 claims-submission date. The office may, upon written request, 2033 grant a 30-day extension of the filing date. 2034 (b) The claim for refund by the qualified target industry 2035 business must include a copy of all receipts pertaining to the 2036 payment of taxes for which the refund is sought and data related 2037 to achievement of each performance item specified in the tax 2038 refund agreement. The amount requested as a tax refund may not 2039 exceed the amount specified for the relevant fiscal year in that 2040 agreement. 2041 (c) If the qualified target industry business provides the 2042 office with proof that in a single year it has paid an amount of 2043 state taxes, from the categories in paragraph (3)(d), at least 2044 equal to the total amount of tax refunds it may receive through 2045 successful completion of its qualified target industry 2046 agreement, the office may waive the requirement for proof of 2047 taxes paid in future years. 2048 (d)(c)A tax refund may not be approved for a qualified 2049 target industry business unless the required local financial 2050 support has been paid into the account for that refund. If the 2051 local financial support provided is less than 20 percent of the 2052 approved tax refund, the tax refund must be reduced. In no event 2053 may the tax refund exceed an amount that is equal to 5 times the 2054 amount of the local financial support received. Further, funding 2055 from local sources includes any tax abatement granted to that 2056 business under s. 196.1995 or the appraised market value of 2057 municipal or county land conveyed or provided at a discount to 2058 that business. The amount of any tax refund for such business 2059 approved under this section must be reduced by the amount of any 2060 such tax abatement granted or the value of the land granted; and 2061 the limitations in subsection (3)(2)and paragraph (4)(e) 2062(3)(e)must be reduced by the amount of any such tax abatement 2063 or the value of the land granted. A report listing all sources 2064 of the local financial support shall be provided to the office 2065 when such support is paid to the account. 2066 (e)(d)A prorated tax refund, less a 5 percent5-percent2067 penalty, shall be approved for a qualified target industry 2068 business ifprovidedall other applicable requirements have been 2069 satisfied and the business proves to the satisfaction of the 2070 director that: 2071 1. It has achieved at least 80 percent of its projected 2072 employment; andthat2073 2. The average wage paid by the business is at least 90 2074 percent of the average wage specified in the tax refund 2075 agreement, but in no case less than 115 percent of the average 2076 private sector wage in the area available at the time of 2077 certification, or 150 percent or 200 percent of the average 2078 private sector wage if the business requested the additional 2079 per-job tax refund authorized in paragraph (3)(b)(2)(b)for 2080 wages above those levels. 2081 2082 The prorated tax refund shall be calculated by multiplying the 2083 tax refund amount for which the qualified target industry 2084 business would have been eligible, if all applicable 2085 requirements had been satisfied, by the percentage of the 2086 average employment specified in the tax refund agreement which 2087 was achieved, and by the percentage of the average wages 2088 specified in the tax refund agreement which was achieved. 2089 (f)(e)The director, with such assistance as may be 2090 required from the office, the Department of Revenue, or the 2091 Agency for Workforce Innovation, shall, by June 30 following the 2092 scheduled date for submission of the tax refund claim, specify 2093 by written order the approval or disapproval of the tax refund 2094 claim and, if approved, the amount of the tax refund that is 2095 authorized to be paid to the qualified target industry business 2096 for the annual tax refund. The office may grant an extension of 2097 this date on the request of the qualified target industry 2098 business for the purpose of filing additional information in 2099 support of the claim. 2100 (g)(f)The total amount of tax refund claims approved by 2101 the director under this section in any fiscal year must not 2102 exceed the amount authorized under s. 288.095(3). 2103 (h)(g)This section does not create a presumption that a 2104 tax refund claim will be approved and paid. 2105 (i)(h)Upon approval of the tax refund under paragraphs 2106(c),(d),and(e), and (f), the Chief Financial Officer shall 2107 issue a warrant for the amount specified in the written order. 2108 If the written order is appealed, the Chief Financial Officer 2109 may not issue a warrant for a refund to the qualified target 2110 industry business until the conclusion of all appeals of that 2111 order. 2112 (7)(6)ADMINISTRATION.— 2113 (a) The office mayis authorized toverify information 2114 provided in any claim submitted for tax credits under this 2115 section with regard to employment and wage levels or the payment 2116 of the taxes to the appropriate agency or authority, including 2117 the Department of Revenue, the Agency for Workforce Innovation, 2118 or any local government or authority. 2119 (b) To facilitate the process of monitoring and auditing 2120 applications made under this program, the office may provide a 2121 list of qualified target industry businesses to the Department 2122 of Revenue, to the Agency for Workforce Innovation, or to any 2123 local government or authority. The office may request the 2124 assistance of those entities with respect to monitoring jobs, 2125 wages, and the payment of the taxes listed in subsection (3) 2126(2). 2127 (c) Funds specifically appropriated for the tax refund 2128 program for qualified target industry businesses may not be used 2129 by the office for any purpose other than the payment of tax 2130 refunds authorized by this section. 2131 (d) For all agreements signed after January 1, 2006, the 2132 office shall conduct a review of each qualified target industry 2133 business approximately 12 months after such business has 2134 received its final incentive refund in order to evaluate whether 2135 the business is continuing to contribute to the regional or 2136 state economy. To complete the reviews, the office shall examine 2137 the size of each business’s workforce, the annual average wage 2138 of its employees, whether the business has made additional 2139 investments in its operations since the completion of its 2140 agreement, and whether the business has expanded into additional 2141 locations. The office shall submit a report of its findings and 2142 recommendations from its reviews to the Governor, the President 2143 of the Senate, and the Speaker of the House of Representatives. 2144 The first report shall be submitted by December 1, 2011, and 2145 each December 1 thereafter. 2146(7)Notwithstanding paragraphs (4)(a) and (5)(c), the2147office may approve a waiver of the local financial support2148requirement for a business located in any of the following2149counties in which businesses received emergency loans2150administered by the office in response to the named hurricanes2151of 2004: Bay, Brevard, Charlotte, DeSoto, Escambia, Flagler,2152Glades, Hardee, Hendry, Highlands, Indian River, Lake, Lee,2153Martin, Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Polk,2154Putnam, Santa Rosa, Seminole, St. Lucie, Volusia, and Walton. A2155waiver may be granted only if the office determines that the2156local financial support cannot be provided or that doing so2157would effect a demonstrable hardship on the unit of local2158government providing the local financial support. If the office2159grants a waiver of the local financial support requirement, the2160state shall pay 100 percent of the refund due to an eligible2161business. The waiver shall apply for tax refund applications2162made for fiscal years 2004-2005, 2005-2006, and 2006-2007.2163 (8) AVALIABILITY OF OTHER TAX CREDITS.—A business that 2164 receives tax refunds pursuant to this section is not eligible 2165 for the capital investment tax credit under s. 220.191. 2166 (9)(8)EXPIRATION.—An applicant may not be certified as 2167 qualified under this section after June 30, 20152010. A tax 2168 refund agreement existing on that date shall continue in effect 2169 in accordance with its terms. 2170 Section 14. Effective July 1, 2010, paragraph (e) of 2171 subsection (1), subsection (2), paragraphs (a) and (d) of 2172 subsection (4), and paragraph (b) of subsection (5) of section 2173 288.107, Florida Statutes, are amended to read: 2174 288.107 Brownfield redevelopment bonus refunds.— 2175 (1) DEFINITIONS.—As used in this section: 2176 (e) “Eligible business” means: 2177 1. A qualified target industry business as defined in s. 2178 288.106(2)s.288.106(1)(o); or 2179 2. A business that can demonstrate a fixed capital 2180 investment of at least $2 million in mixed-use business 2181 activities, including multiunit housing, commercial, retail, and 2182 industrial in brownfield areas, or at least $500,000 in 2183 brownfield areas that do not require site cleanup, and which 2184 provides benefits to its employees. 2185 (2) BROWNFIELD REDEVELOPMENT BONUS REFUND.—Bonus refunds 2186 shall be approved by the office as specified in the final order 2187 issued by the director and allowed from the account as follows: 2188 (a) A bonus refund of $2,500 shall be allowed to any 2189 qualified target industry business as defined by s. 288.106 for 2190 each new Florida job created in a brownfield area which is 2191 claimed on the qualified target industry business’s annual 2192 refund claim authorized in s. 288.106(6)s.288.106(5). 2193 (b) A bonus refund of up to $2,500 shall be allowed to any 2194 other eligible business as defined in subparagraph (1)(e)2. for 2195 each new Florida job created in a brownfield which is claimed 2196 under an annual claim procedure similar to the annual refund 2197 claim authorized in s. 288.106(6)s.288.106(5). The amount of 2198 the refund shall be equal to 20 percent of the average annual 2199 wage for the jobs created. 2200 (4) PAYMENT OF BROWNFIELD REDEVELOPMENT BONUS REFUNDS.— 2201 (a) To be eligible to receive a bonus refund for new 2202 Florida jobs created in a brownfield, a business must have been 2203 certified as a qualified target industry business under s. 2204 288.106 or eligible business as defined in paragraph (1)(e) and 2205 must have indicated on the qualified target industry tax refund 2206 application form submitted in accordance with s. 288.106(4)s.2207288.106(3)or other similar agreement for other eligible 2208 business as defined in paragraph (1)(e) that the project for 2209 which the application is submitted is or will be located in a 2210 brownfield and that the business is applying for certification 2211 as a qualified brownfield business under this section, and must 2212 have signed a qualified target industry tax refund agreement 2213 with the office which indicates that the business has been 2214 certified as a qualified target industry business located in a 2215 brownfield and specifies the schedule of brownfield 2216 redevelopment bonus refunds that the business may be eligible to 2217 receive in each fiscal year. 2218 (d) After entering into a tax refund agreement as provided 2219 in s. 288.106 or other similar agreement for other eligible 2220 businesses as defined in paragraph (1)(e), an eligible business 2221 may receive brownfield redevelopment bonus refunds from the 2222 account pursuant to s. 288.106(3)(d)s.288.106(2)(c). 2223 (5) ADMINISTRATION.— 2224 (b) To facilitate the process of monitoring and auditing 2225 applications made under this program, the office may provide a 2226 list of qualified target industry businesses to the Department 2227 of Revenue, to the Agency for Workforce Innovation, to the 2228 Department of Environmental Protection, or to any local 2229 government authority. The office may request the assistance of 2230 those entities with respect to monitoring the payment of the 2231 taxes listed in s. 288.106(3)s.288.106(2). 2232 Section 15. Effective July 1, 2010, section 288.125, 2233 Florida Statutes, is amended to read: 2234 288.125 Definition of “entertainment industry”.—For the 2235 purposes of ss. 288.1251-288.1258, the term “entertainment 2236 industry” means those persons or entities engaged in the 2237 operation of motion picture or television studios or recording 2238 studios; those persons or entities engaged in the preproduction, 2239 production, or postproduction of motion pictures, made-for 2240 television movies, television programming, digital media 2241 projects, commercial advertising, music videos, or sound 2242 recordings; and those persons or entities providing products or 2243 services directly related to the preproduction, production, or 2244 postproduction of motion pictures, made-for-television movies, 2245 television programming, digital media projects, commercial 2246 advertising, music videos, or sound recordings, including, but 2247 not limited to, the broadcast industry. 2248 Section 16. Effective July 1, 2010, paragraph (b) of 2249 subsection (1) and paragraph (a) of subsection (2) of section 2250 288.1251, Florida Statutes, are amended to read: 2251 288.1251 Promotion and development of entertainment 2252 industry; Office of Film and Entertainment; creation; purpose; 2253 powers and duties.— 2254 (1) CREATION.— 2255 (b) The Office of Tourism, Trade, and Economic Development 2256 shall conduct a national search for a qualified person to fill 2257 the position of Commissioner of Film and Entertainment, when the 2258 position is vacant.andThe Executive Director of the Office of 2259 Tourism, Trade, and Economic Development has the responsibility 2260 toshallhire the commissionerof Film and Entertainment. 2261 Qualifications for the commissionerGuidelines for selection of2262the Commissioner of Film and Entertainment shallinclude, but 2263 are notbelimited to,the Commissioner of Film and2264Entertainment havingthe following: 2265 1. A working knowledge of the equipment, personnel, 2266 financial, and day-to-day production operations of the 2267 industries to be served by the Office of Film and Entertainment; 2268 2. Marketing and promotion experience related to the film 2269 and entertainment industries to be servedby the office; 2270 3. Experience working with a variety of individuals 2271 representing large and small entertainment-related businesses, 2272 industry associations, local community entertainment industry 2273 liaisons, and labor organizations; and 2274 4. Experience working with a variety of state and local 2275 governmental agencies. 2276 (2) POWERS AND DUTIES.— 2277 (a) The Office of Film and Entertainment, in performance of 2278 its duties, shall: 2279 1. In consultation with the Florida Film and Entertainment 2280 Advisory Council, update thedevelop and implement a 5-year2281 strategic plan every 5 years to guide the activities of the 2282 Office of Film and Entertainment in the areas of entertainment 2283 industry development, marketing, promotion, liaison services, 2284 field office administration, and information. The plan, to be2285developed by no later than June 30, 2000,shall: 2286 a. Be annual in construction and ongoing in nature. 2287 b. Include recommendations relating to the organizational 2288 structure of the office. 2289 c. Include an annual budget projection for the office for 2290 each year of the plan. 2291 d. Include an operational model for the office to use in 2292 implementing programs for rural and urban areas designed to: 2293 (I) Develop and promote the state’s entertainment industry. 2294 (II) Have the office serve as a liaison between the 2295 entertainment industry and other state and local governmental 2296 agencies, local film commissions, and labor organizations. 2297 (III) Gather statistical information related to the state’s 2298 entertainment industry. 2299 (IV) Provide information and service to businesses, 2300 communities, organizations, and individuals engaged in 2301 entertainment industry activities. 2302 (V) Administer field offices outside the state and 2303 coordinate with regional offices maintained by counties and 2304 regions of the state, as described in sub-sub-subparagraph (II), 2305 as necessary. 2306 e. Include performance standards and measurable outcomes 2307 for the programs to be implemented by the office. 2308 f. Include an assessment of, and make recommendations on, 2309 the feasibility of creating an alternative public-private 2310 partnership for the purpose of contracting with such a 2311 partnership for the administration of the state’s entertainment 2312 industry promotion, development, marketing, and service 2313 programs. 2314 2. Develop, market, and facilitate asmoothworking 2315 relationship between state agencies and local governments in 2316 cooperation with local film commission offices for out-of-state 2317 and indigenous entertainment industry production entities. 2318 3. Implement a structured methodology prescribed for 2319 coordinating activities of local offices with each other and the 2320 commissioner’s office. 2321 4. Represent the state’s indigenous entertainment industry 2322 to key decisionmakers within the national and international 2323 entertainment industry, and to state and local officials. 2324 5. Prepare an inventory and analysis of the state’s 2325 entertainment industry, including, but not limited to, 2326 information on crew, related businesses, support services, job 2327 creation, talent, and economic impact and coordinate with local 2328 offices to develop an information tool for common use. 23296. Represent key decisionmakers within the national and2330international entertainment industry to the indigenous2331entertainment industry and to state and local officials.23327. Serve as liaison between entertainment industry2333producers and labor organizations.2334 6.8.Identify, solicit, and recruit entertainment 2335 production opportunities for the state. 2336 7.9.Assist rural communities and other small communities 2337 in the state in developing the expertise and capacity necessary 2338 for such communities to develop, market, promote, and provide 2339 services to the state’s entertainment industry. 2340 Section 17. Effective July 1, 2010, subsection (3) of 2341 section 288.1252, Florida Statutes, is amended to read: 2342 288.1252 Florida Film and Entertainment Advisory Council; 2343 creation; purpose; membership; powers and duties.— 2344 (3) MEMBERSHIP.— 2345 (a) The council shall consist of 17 members, seven to be 2346 appointed by the Governor, five to be appointed by the President 2347 of the Senate, and five to be appointed by the Speaker of the 2348 House of Representatives, with the initial appointments being2349made no later than August 1, 1999. 2350 (b) When making appointments to the council, the Governor, 2351 the President of the Senate, and the Speaker of the House of 2352 Representatives shall appoint persons who are residents of the 2353 state and who are highly knowledgeable of, active in, and 2354 recognized leaders in Florida’s motion picture, television, 2355 video, sound recording, or other entertainment industries. These 2356 persons shall include, but not be limited to, representatives of 2357 local film commissions, representatives of entertainment 2358 associations, a representative of the broadcast industry, 2359 representatives of labor organizations in the entertainment 2360 industry, and board chairs, presidents, chief executive 2361 officers, chief operating officers, or persons of comparable 2362 executive position or stature of leading or otherwise important 2363 entertainment industry businesses and offices. Council members 2364 shall be appointed in such a manner as to equitably represent 2365 the broadest spectrum of the entertainment industry and 2366 geographic areas of the state. 2367 (c) Council members shall serve for 4-year terms, except2368that the initial terms shall be staggered:23691. The Governor shall appoint one member for a 1-year term,2370two members for 2-year terms, two members for 3-year terms, and2371two members for 4-year terms.23722. The President of the Senate shall appoint one member for2373a 1-year term, one member for a 2-year term, two members for 32374year terms, and one member for a 4-year term.23753. The Speaker of the House of Representatives shall2376appoint one member for a 1-year term, one member for a 2-year2377term, two members for 3-year terms, and one member for a 4-year2378term. 2379 (d) Subsequent appointments shall be made by the official 2380 who appointed the council member whose expired term is to be 2381 filled. 2382 (e)The Commissioner of Film and Entertainment,A 2383 representative of Enterprise Florida, Inc., a representative of 2384 Workforce Florida, Inc., and a representative of Visit Florida 2385the Florida Tourism Industry Marketing Corporationshall serve 2386 as ex officio, nonvoting members of the council, and shall be in 2387 addition to the 17 appointed members of the council. 2388 (f) Absence from three consecutive meetings shall result in 2389 automatic removal from the council. 2390 (g) A vacancy on the council shall be filled for the 2391 remainder of the unexpired term by the official who appointed 2392 the vacating member. 2393 (h) No more than one member of the council may be an 2394 employee of any one company, organization, or association. 2395 (i) Any member shall be eligible for reappointment but may 2396 not serve more than two consecutive terms. 2397 Section 18. Effective July 1, 2010, subsections (1), (2), 2398 (4), and (5) of section 288.1253, Florida Statutes, are amended 2399 to read: 2400 288.1253 Travel and entertainment expenses.— 2401 (1) As used in this section, the term:2402(a) “Business client” means any person, other than a state2403official or state employee, who receives the services of2404representatives of the Office of Film and Entertainment in2405connection with the performance of its statutory duties,2406including persons or representatives of entertainment industry2407companies considering location, relocation, or expansion of an2408entertainment industry business within the state.2409(b) “Entertainment expenses” means the actual, necessary,2410and reasonable costs of providing hospitality for business2411clients or guests, which costs are defined and prescribed by2412rules adopted by the Office of Tourism, Trade, and Economic2413Development, subject to approval by the Chief Financial Officer.2414(c) “Guest” means a person, other than a state official or2415state employee, authorized by the Office of Tourism, Trade, and2416Economic Development to receive the hospitality of the Office of2417Film and Entertainment in connection with the performance of its2418statutory duties.2419(d)“travel expenses” means the actual, necessary, and 2420 reasonable costs of transportation, meals, lodging, and 2421 incidental expenses normally incurred by an employee of the 2422 Office of Film and Entertainmenta traveler, which costs are 2423 defined and prescribed by rules adopted by the Office of 2424 Tourism, Trade, and Economic Development, subject to approval by 2425 the Chief Financial Officer. 2426 (2) Notwithstanding the provisions of s. 112.061, the 2427 Office of Tourism, Trade, and Economic Development shall adopt 2428 rules by which it may make expenditures byadvancement or2429 reimbursement, or a combination thereof,to: 2430(a)the Governor, the Lieutenant Governor, security staff 2431 of the Governor or Lieutenant Governor, the Commissioner of Film 2432 and Entertainment, or staff of the Office of Film and 2433 Entertainment for travel expenses or entertainment expenses 2434 incurred by such individuals solely and exclusively in 2435 connection with the performance of the statutory duties of the 2436 Office of Film and Entertainment. 2437(b) The Governor, the Lieutenant Governor, security staff2438of the Governor or Lieutenant Governor, the Commissioner of Film2439and Entertainment, or staff of the Office of Film and2440Entertainment for travel expenses or entertainment expenses2441incurred by such individuals on behalf of guests, business2442clients, or authorized persons as defined in s.112.061(2)(e)2443solely and exclusively in connection with the performance of the2444statutory duties of the Office of Film and Entertainment.2445(c) Third-party vendors for the travel or entertainment2446expenses of guests, business clients, or authorized persons as2447defined in s.112.061(2)(e) incurred solely and exclusively2448while such persons are participating in activities or events2449carried out by the Office of Film and Entertainment in2450connection with that office’s statutory duties.2451 2452 The rules areshall besubject to approval by the Chief 2453 Financial Officer before adoptionpriortopromulgation. The 2454 rules shall require the submission of paid receipts, or other 2455 proof of expenditure prescribed by the Chief Financial Officer, 2456 with any claim for reimbursementand shall require, as a2457condition for any advancement of funds, an agreement to submit2458paid receipts or other proof of expenditure and to refund any2459unused portion of the advancement within 15 days after the2460expense is incurred or, if the advancement is made in connection2461with travel, within 10 working days after the traveler’s return2462to headquarters.However, with respect to an advancement of2463funds made solely for travel expenses, the rules may allow paid2464receipts or other proof of expenditure to be submitted, and any2465unused portion of the advancement to be refunded, within 102466working days after the traveler’s return to headquarters.2467Operational or promotional advancements, as defined in s.2468288.35(4), obtained pursuant to this section shall not be2469commingled with any other state funds.2470 (5) Any claim submitted under this section isshallnotbe2471 required to be sworn to before a notary public or other officer 2472 authorized to administer oaths, but any claim authorized or 2473 required to be made under any provision of this section shall 2474 contain a statement that the expenses were actually incurred as 2475 necessary travel or entertainment expenses in the performance of 2476 official duties of the Office of Film and Entertainment and 2477 shall be verified by written declaration that it is true and 2478 correct as to every material matter. Any person who willfully 2479 makes and subscribes to any claim which he or she does not 2480 believe to be true and correct as to every material matter or 2481 who willfully aids or assists in, procures, or counsels or 2482 advises with respect to, the preparation or presentation of a 2483 claim pursuant to this section that is fraudulent or false as to 2484 any material matter, whetheror notsuch falsity or fraud is 2485 with the knowledge or consent of the person authorized or 2486 required to present the claim, commits a misdemeanor of the 2487 second degree, punishable as provided in s. 775.082 or s. 2488 775.083. Whoever receives aan advancement orreimbursement by 2489 means of a false claim is civilly liable, in the amount of the 2490 overpayment, for the reimbursement of the public fund from which 2491 the claim was paid. 2492 Section 19. Effective July 1, 2010, section 288.1254, 2493 Florida Statutes, is amended to read: 2494 (Substantial rewording of section. See 2495 s. 288.1254, F.S., for present text.) 2496 288.1254 Entertainment industry financial incentive 2497 program.— 2498 (1) DEFINITIONS.—As used in this section, the term: 2499 (a) “Certified production” means a qualified production 2500 that has tax credits allocated to it by the Office of Tourism, 2501 Trade, and Economic Development based on the production’s 2502 estimated qualified expenditures, up to the production’s maximum 2503 certified amount of tax credits, by the Office of Tourism, 2504 Trade, and Economic Development. The term does not include a 2505 production if the first date that it incurs production 2506 expenditures in this state occurs before the production is 2507 certified by the Office of Tourism, Trade, and Economic 2508 Development. 2509 (b) “Digital media project” means a production of 2510 interactive entertainment that is produced for distribution in 2511 commercial or educational markets. The term includes a video 2512 game or production intended for Internet or wireless 2513 distribution. The term does not include a production deemed by 2514 the Office of Film and Entertainment to contain obscene content 2515 as defined in s. 847.001(10). 2516 (c) “High-impact television series” means a production 2517 created to run multiple production seasons and having an 2518 estimated order of at least seven episodes per season and 2519 qualified expenditures of at least $625,000 per episode. 2520 (d) “Off-season certified production” means a production, 2521 other than a digital media project or an animated production, 2522 commercial, music video, or documentary, which films 75 percent 2523 or more of its principal photography days from June 1 through 2524 November 30. 2525 (e) “Principal photography” means the filming of major or 2526 significant components of the qualified production which involve 2527 lead actors. 2528 (f) “Production” means a theatrical or direct-to-video 2529 motion picture; a made-for-television motion picture; visual 2530 effects or digital animation sequences produced in conjunction 2531 with a motion picture; a commercial; a music video; an 2532 industrial or educational film; an infomercial; a documentary 2533 film; a television pilot program; a presentation for a 2534 television pilot program; a television series, including, but 2535 not limited to, a drama, a reality show, a comedy, a soap opera, 2536 a telenovela, a game show, or a miniseries production; or a 2537 digital media project by the entertainment industry. One season 2538 of a television series is considered one production. The term 2539 does not include a weather or market program; a sporting event; 2540 a sports show; a gala; a production that solicits funds; a home 2541 shopping program; a political program; a political documentary; 2542 political advertising; a gambling-related project or production; 2543 a concert production; or a local, regional, or Internet 2544 distributed-only news show, current-events show, pornographic 2545 production, or current-affairs show. A production may be 2546 produced on or by film, tape, or otherwise by means of a motion 2547 picture camera; electronic camera or device; tape device; 2548 computer; any combination of the foregoing; or any other means, 2549 method, or device now used or later adopted. 2550 (g) “Production expenditures” means the costs of tangible 2551 and intangible property used for, and services performed 2552 primarily and customarily in, production, including 2553 preproduction and postproduction, but excluding costs for 2554 development, marketing, and distribution. The term includes, but 2555 is not limited to: 2556 1. Wages, salaries, or other compensation paid to legal 2557 residents of this state, including amounts paid through payroll 2558 service companies, for technical and production crews, 2559 directors, producers, and performers. 2560 2. Expenditures for sound stages, backlots, production 2561 editing, digital effects, sound recordings, sets, and set 2562 construction. 2563 3. Expenditures for rental equipment, including, but not 2564 limited to, cameras and grip or electrical equipment. 2565 4. Up to $300,000 of the costs of newly purchased computer 2566 software and hardware unique to the project, including servers, 2567 data processing, and visualization technologies, which are 2568 located in and used exclusively in the state for the production 2569 of digital media. 2570 5. Expenditures for meals, travel, and accommodations. 2571 (h) “Qualified expenditures” means production expenditures 2572 incurred in this state by a qualified production for: 2573 1. Goods purchased or leased from, or services, including, 2574 but not limited to, insurance costs and bonding, payroll 2575 services, and legal fees, which are provided by a vendor or 2576 supplier in this state which is registered with the Department 2577 of State or the Department of Revenue, is doing business in the 2578 state, and whose primary employees involved in facilitating the 2579 transaction are legal residents of and doing business in this 2580 state. 2581 2. Payments to legal residents of this state in the form of 2582 salary, wages, or other compensation up to a maximum of $650,000 2583 per resident unless otherwise specified in subsection (4). 2584 2585 For a qualified production involving an event, such as an awards 2586 show, the term does not include expenditures solely associated 2587 with the event itself and not directly required by the 2588 production. The term does not include expenditures incurred 2589 before certification, with the exception of those incurred for a 2590 commercial, a music video, or the pickup of additional episodes 2591 of a high-impact television series within a single season. 2592 (i) “Qualified production” means a production in this state 2593 meeting the requirements of this section. The term does not 2594 include a production: 2595 1. In which, for the first 2 years of the incentive 2596 program, less than 50 percent, and, thereafter, less than 60 2597 percent, of the positions that make up its production cast and 2598 below-the-line production crew, or, in the case of digital media 2599 projects, less than 75 percent of such positions, are filled by 2600 legal residents of this state, whose residency is demonstrated 2601 by a valid Florida driver’s license or other state-issued 2602 identification confirming residency, or students enrolled full 2603 time in a film-and-entertainment-related course of study at an 2604 institution of higher education in this state; or 2605 2. That is deemed by the Office of Film and Entertainment 2606 to contain obscene content as defined in s. 847.001(10). 2607 (j) “Qualified production company” means a corporation, 2608 limited liability company, partnership, or other legal entity 2609 engaged in one or more productions in this state. 2610 (2) CREATION AND PURPOSE OF PROGRAM.—The entertainment 2611 industry financial incentive program is created within the 2612 Office of Film and Entertainment. The purpose of this program is 2613 to encourage the use of this state as a site for filming, for 2614 the digital production of films, and to develop and sustain the 2615 workforce and infrastructure for film, digital media, and 2616 entertainment production. 2617 (3) APPLICATION PROCEDURE; APPROVAL PROCESS.— 2618 (a) Program application.—A qualified production company 2619 producing a qualified production in this state may submit a 2620 program application to the Office of Film and Entertainment for 2621 the purpose of determining qualification for an award of tax 2622 credits authorized by this section no earlier than 6 months 2623 before the first date that production expenditures are incurred 2624 in this state. The applicant shall provide the Office of Film 2625 and Entertainment with information required to determine whether 2626 the production is a qualified production and to determine the 2627 qualified expenditures and other information necessary for the 2628 office to determine eligibility for the tax credit. 2629 (b) Required documentation.—The Office of Film and 2630 Entertainment shall develop an application form for qualifying 2631 an applicant as a qualified production. The form must include, 2632 but need not be limited to, production-related information 2633 concerning employment of residents in this state, a detailed 2634 budget of planned qualified expenditures, and the applicant’s 2635 signed affirmation that the information on the form has been 2636 verified and is correct. The Office of Film and Entertainment 2637 and local film commissions shall distribute the form. 2638 (c) Application process.—The Office of Film and 2639 Entertainment shall establish a process by which an application 2640 is accepted and reviewed and by which tax credit eligibility and 2641 the award amount are determined. The Office of Film and 2642 Entertainment may request assistance from a duly appointed local 2643 film commission in determining compliance with this section. 2644 (d) Certification.—The Office of Film and Entertainment 2645 shall review the application within 15 business days after 2646 receipt. Upon its determination that the application contains 2647 all the information required by this subsection and meets the 2648 criteria set out in this section, the Office of Film and 2649 Entertainment shall qualify the applicant and recommend to the 2650 Office of Tourism, Trade, and Economic Development that the 2651 applicant be certified for the maximum tax credit award amount. 2652 Within 5 business days after receipt of the recommendation, the 2653 Office of Tourism, Trade, and Economic Development shall reject 2654 the recommendation or certify the maximum recommended tax credit 2655 award, if any, to the applicant and to the executive director of 2656 the Department of Revenue. 2657 (e) Grounds for denial.—The Office of Film and 2658 Entertainment shall deny an application if it determines that 2659 the application is incomplete or the production or application 2660 does not meet the requirements of this section. 2661 (f) Verification of actual qualified expenditures.— 2662 1. The Office of Film and Entertainment shall develop a 2663 process to verify the actual qualified expenditures of a 2664 certified production. The process must require: 2665 a. A certified production to submit, in a timely manner 2666 after principal photography, digital production, or the digital 2667 media project ends and after making all of its qualified 2668 expenditures, data substantiating each qualified expenditure to 2669 an independent certified public accountant licensed in this 2670 state; 2671 b. Such accountant to conduct a compliance audit, at the 2672 certified production’s expense, to substantiate each qualified 2673 expenditure and submit the results as a report, along with the 2674 required substantiating data, to the Office of Film and 2675 Entertainment; and 2676 c. The Office of Film and Entertainment to review the 2677 accountant’s submittal and report to the Office of Tourism, 2678 Trade, and Economic Development the final verified amount of 2679 actual qualified expenditures made by the certified production. 2680 2. The Office of Tourism, Trade, and Economic Development 2681 shall determine and approve the final tax credit award amount to 2682 each certified applicant based on the final verified amount of 2683 actual qualified expenditures and shall notify the executive 2684 director of the Department of Revenue in writing that the 2685 certified production has met the requirements of the incentive 2686 program and of the final amount of the tax credit award. The 2687 final tax credit award amount may not exceed the maximum tax 2688 credit award amount certified under paragraph (d). 2689 (g) Promoting Florida.—The Office of Film and Entertainment 2690 shall ensure that, as a condition of receiving a tax credit 2691 under this section, marketing materials promoting this state as 2692 a tourist destination or film and entertainment production 2693 destination are included, when appropriate, at no cost to the 2694 state, which must, at a minimum, include placement of a “Filmed 2695 in Florida” or “Produced in Florida” logo in the opening credits 2696 and end credits and on all packaging material and hard media, 2697 unless prohibited by licensing or other contractual obligations. 2698 The size and placement of such logo shall be commensurate to 2699 other logos used. If no logos are used, the statement “Filmed in 2700 Florida using Florida’s Entertainment Industry Financial 2701 Incentive,” or a similar statement approved by the Office of 2702 Film and Entertainment, shall be used. The Office of Film and 2703 Entertainment shall provide a logo and supply it for the 2704 purposes specified in this paragraph. 2705 (4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES; 2706 ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS; 2707 PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND 2708 ACQUISITIONS.— 2709 (a) Priority for tax credit award.—The priority of a 2710 qualified production for tax credit awards must be determined on 2711 a first-come, first-served basis within its appropriate queue. 2712 Each qualified production must be placed into the appropriate 2713 queue and is subject to the requirements of that queue. 2714 (b) Tax credit eligibility.— 2715 1. General production queue.—Ninety-four percent of tax 2716 credits authorized in any state fiscal year must be dedicated to 2717 the general production queue. The general production queue 2718 consists of all qualified productions other than those eligible 2719 for the commercial and music video queue or the independent 2720 production queue. A qualified production that demonstrates a 2721 minimum of $625,000 in qualified expenditures is eligible for 2722 tax credits equal to 20 percent of its actual qualified 2723 expenditures, up to a maximum of $8 million. A qualified 2724 production that incurs qualified expenditures during multiple 2725 state fiscal years may combine those expenditures to satisfy the 2726 $625,000 minimum threshold. 2727 a. An off-season certified production that is a feature 2728 film, independent film, or television series or pilot is 2729 eligible for an additional 5-percent tax credit on actual 2730 qualified expenditures. An off-season certified production that 2731 does not complete 75 percent of principal photography due to a 2732 disruption caused by a hurricane or tropical storm may not be 2733 disqualified from eligibility for the additional 5-percent 2734 credit as a result of the disruption. 2735 b. A qualified high-impact television series shall be 2736 allowed first position in this queue for tax credit awards not 2737 yet certified. 2738 2. Commercial and music video queue.—Three percent of tax 2739 credits authorized in any state fiscal year must be dedicated to 2740 the commercial and music video queue. A qualified production 2741 company that produces national or regional commercials or music 2742 videos may be eligible for a tax credit award if it demonstrates 2743 a minimum of $100,000 in qualified expenditures per national or 2744 regional commercial or music video and exceeds a combined 2745 threshold of $500,000 after combining actual qualified 2746 expenditures from qualified commercials and music videos during 2747 a single state fiscal year. After a qualified production company 2748 that produces commercials, music videos, or both reaches the 2749 threshold of $500,000, it is eligible to apply for certification 2750 for a tax credit award. The maximum credit award shall be equal 2751 to 20 percent of its actual qualified expenditures up to a 2752 maximum of $500,000. If there is a surplus at the end of a 2753 fiscal year after the Office of Film and Entertainment certifies 2754 and determines the tax credits for all qualified commercial and 2755 video projects, such surplus tax credits shall be carried 2756 forward to the following fiscal year and be available to any 2757 eligible qualified productions under the general production 2758 queue. 2759 3. Independent production queue.—Three percent of tax 2760 credits authorized in any state fiscal year must be dedicated to 2761 the independent production queue. An independent Florida film or 2762 digital media project that meets the criteria of this 2763 subparagraph and demonstrates a minimum of $100,000, but not 2764 more than $625,000, in total qualified expenditures is eligible 2765 for tax credits equal to 20 percent of its actual qualified 2766 expenditures. To qualify for this tax credit, a qualified 2767 production must: 2768 a. Be planned as a feature film or documentary of at least 2769 70 minutes in length or be a digital media project. 2770 b. Employ legal residents of this state in at least two of 2771 the following key positions: writer, director, producer, star, 2772 or composer; or, in the case of a digital media project, employ 2773 legal residents of this state in at least two positions 2774 functionally equivalent to the positions of writer, director, 2775 producer, star, or composer. 2776 4. Family-friendly productions.—A certified production 2777 determined by the Commissioner of Film and Entertainment, with 2778 the advice of the Florida Film and Entertainment Advisory 2779 Council, to be family-friendly, based on the review of the 2780 script and the review of the final release version, is eligible 2781 for an additional tax credit equal to 5 percent of its actual 2782 qualified expenditures. Family-friendly productions are those 2783 that have cross-generational appeal; would be considered 2784 suitable for viewing by children age 5 or older; are appropriate 2785 in theme, content, and language for a broad family audience; 2786 embody a responsible resolution of issues; and do not exhibit or 2787 imply any act of smoking, sex, nudity, gratuitous violence, or 2788 vulgar or profane language. 2789 (c) Withdrawal of tax credit eligibility.—A qualified or 2790 certified production must continue on a reasonable schedule, 2791 which means beginning principal photography, or, in the case of 2792 a digital media project, the start date of the production, in 2793 this state no more than 45 calendar days before or after the 2794 date provided in the production’s program application. The 2795 Office of Tourism, Trade, and Economic Development shall 2796 withdraw the eligibility of a qualified or certified production 2797 that does not continue on a reasonable schedule. 2798 (d) Election and distribution of tax credits.— 2799 1. A certified production company receiving a tax credit 2800 award under this section shall, at the time the credit is 2801 awarded by the Office of Tourism, Trade, and Economic 2802 Development after production is completed and all requirements 2803 to receive a credit award have been met, make an irrevocable 2804 election to apply the credit against taxes due under chapter 2805 220, against taxes collected or accrued under chapter 212, 2806 except that the credit authorized under this section may not be 2807 applied against discretionary sales surtaxes authorized under s. 2808 212.055, or against a stated combination of the two taxes. The 2809 election is binding upon any distributee, successor, transferee, 2810 or purchaser. The Office of Tourism, Trade, and Economic 2811 Development shall notify the Department of Revenue of any 2812 election made pursuant to this paragraph. 2813 2. For the fiscal years beginning July 1, 2010, and ending 2814 June 30, 2015, a qualified production company is eligible for 2815 tax credits against its sales and use tax liabilities and 2816 corporate income tax liabilities as provided in this section. 2817 However, tax credits awarded under this section may not be 2818 claimed against sales and use tax liabilities or corporate 2819 income tax liabilities for any tax period beginning before July 2820 1, 2011, regardless of when the credits are applied for or 2821 awarded. 2822 (e) Tax credit carryforward.—If the certified production 2823 company cannot use the entire tax credit in the taxable year or 2824 reporting period in which the credit is awarded, any excess 2825 amount may be carried forward to a succeeding taxable year or 2826 reporting period. A tax credit applied against taxes imposed 2827 under chapter 212 may be carried forward for a maximum of 5 2828 years after the date the credit is awarded. A tax credit applied 2829 against taxes imposed under chapter 220 may be carried forward 2830 for a maximum of 5 years after the date the credit is awarded, 2831 after which the credit expires and may not be used. 2832 (f) Consolidated returns.—A certified production company 2833 that files a Florida consolidated return as a member of an 2834 affiliated group under s. 220.131(1) may be allowed the credit 2835 on a consolidated return basis up to the amount of the tax 2836 imposed upon the consolidated group under chapter 220. 2837 (g) Partnership and noncorporate distributions.—A qualified 2838 production company that is not a corporation as defined in s. 2839 220.03 may elect to distribute tax credits awarded under this 2840 section to its partners or members in proportion to their 2841 respective distributive income or loss in the taxable fiscal 2842 year in which the tax credits were awarded. 2843 (h) Mergers or acquisitions.—Tax credits available under 2844 this section to a certified production company may succeed to a 2845 surviving or acquiring entity subject to the same conditions and 2846 limitations as described in this section; however, they may not 2847 be transferred again by the surviving or acquiring entity. 2848 (5) TRANSFER OF TAX CREDITS.— 2849 (a) Authorization.—Upon application to the Office of Film 2850 and Entertainment and approval by the Office of Tourism, Trade, 2851 and Economic Development, a certified production company, or a 2852 partner or member that has received a distribution under 2853 paragraph (4)(g), may elect to transfer, in whole or in part, 2854 any unused credit amount granted under this section. An election 2855 to transfer any unused tax credit amount under chapter 212 or 2856 chapter 220 must be made no later than 5 years after the date 2857 the credit is awarded, after which period the credit expires and 2858 may not be used. The Office of Tourism, Trade, and Economic 2859 Development shall notify the Department of Revenue of the 2860 election and transfer. 2861 (b) Number of transfers permitted.—A certified production 2862 company that elects to apply a credit amount against taxes 2863 remitted under chapter 212 is permitted a one-time transfer of 2864 unused credits to one transferee. The credit against sales tax 2865 is available to the transferee only through a refund of 2866 previously paid taxes pursuant to s. 212.08(5)(g). A certified 2867 production company that elects to apply a credit amount against 2868 taxes due under chapter 220 is permitted a one-time transfer of 2869 unused credits to no more than four transferees, and such 2870 transfers must occur in the same taxable year. 2871 (c) Transferee rights and limitations.—The transferee is 2872 subject to the same rights and limitations as the certified 2873 production company awarded the tax credit, except that the 2874 transferee may not sell or otherwise transfer the tax credit. 2875 (d) Rulemaking.—The Department of Revenue may adopt rules 2876 to administer this subsection, as provided in subsection (7). 2877 (6) ANNUAL ALLOCATION OF TAX CREDITS.— 2878 (a) The aggregate amount of the tax credits that may be 2879 certified pursuant to paragraph (3)(d) may not exceed $20 2880 million per fiscal year. 2881 (b) Any portion of the maximum amount of tax credits 2882 established per fiscal year in paragraph (a) that is not 2883 certified as of the end of a fiscal year shall be carried 2884 forward and made available for certification during the 2885 following two fiscal years in addition to the amounts available 2886 for certification under paragraph (a) for those fiscal years. 2887 (c) Upon approval of the final tax credit award amount 2888 pursuant to subparagraph (3)(f)2., an amount equal to the 2889 difference between the maximum tax credit award amount 2890 previously certified under paragraph (3)(d) and the approved 2891 final tax credit award amount shall immediately be available for 2892 recertification during the current and following fiscal years in 2893 addition to the amounts available for certification under 2894 paragraph (a) for those fiscal years. Credit amounts are 2895 available for recertification only once under this paragraph. 2896 (d) If, during a fiscal year, the total amount of credits 2897 applied for, pursuant to paragraph (3)(a), exceeds the amount of 2898 credits available for certification in that fiscal year, such 2899 excess shall be treated as having been applied for on the first 2900 day of the next fiscal year in which credits remain available 2901 for certification. 2902 (7) RULES, POLICIES, AND PROCEDURES.— 2903 (a) The Office of Tourism, Trade, and Economic Development 2904 may adopt rules pursuant to ss. 120.536(1) and 120.54 and 2905 develop policies and procedures to implement and administer this 2906 section, including, but not limited to, rules specifying 2907 requirements for the application and approval process, records 2908 required for substantiation for tax credits, procedures for 2909 making the election in paragraph (4)(d), the manner and form of 2910 documentation required to claim tax credits awarded or 2911 transferred under this section, and marketing requirements for 2912 tax credit recipients. 2913 (b) The Department of Revenue may adopt rules pursuant to 2914 ss. 120.536(1) and 120.54 to administer this section, including 2915 rules governing the examination and audit procedures required to 2916 administer this section and the manner and form of documentation 2917 required to claim tax credits awarded or transferred under this 2918 section. 2919 (8) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX 2920 CREDITS; FRAUDULENT CLAIMS.— 2921 (a) Audit authority.—The Department of Revenue may conduct 2922 examinations and audits as provided in s. 213.34 to verify that 2923 tax credits under this section are received, transferred, and 2924 applied according to the requirements of this section. If the 2925 Department of Revenue determines that tax credits are not 2926 received, transferred, or applied as required by this section, 2927 it may, in addition to the remedies provided in this subsection, 2928 pursue recovery of such funds pursuant to the laws and rules 2929 governing the assessment of taxes. 2930 (b) Revocation of tax credits.—The Office of Tourism, 2931 Trade, and Economic Development may revoke or modify any written 2932 decision qualifying, certifying, or otherwise granting 2933 eligibility for tax credits under this section if it is 2934 discovered that the tax credit applicant submitted any false 2935 statement, representation, or certification in any application, 2936 record, report, plan, or other document filed in an attempt to 2937 receive tax credits under this section. The Office of Tourism, 2938 Trade, and Economic Development shall immediately notify the 2939 Department of Revenue of any revoked or modified orders 2940 affecting previously granted tax credits. Additionally, the 2941 applicant must notify the Department of Revenue of any change in 2942 its tax credit claimed. 2943 (c) Forfeiture of tax credits.—A determination by the 2944 Department of Revenue, as a result of an audit or examination by 2945 the Department of Revenue or from information received from the 2946 Office of Film and Entertainment, that an applicant received tax 2947 credits pursuant to this section to which the applicant was not 2948 entitled is grounds for forfeiture of previously claimed and 2949 received tax credits. The applicant is responsible for returning 2950 forfeited tax credits to the Department of Revenue, and such 2951 funds shall be paid into the General Revenue Fund of the state. 2952 Tax credits purchased in good faith are not subject to 2953 forfeiture unless the transferee submitted fraudulent 2954 information in the purchase or failed to meet the requirements 2955 in subsection (5). 2956 (d) Fraudulent claims.—Any applicant that submits 2957 fraudulent information under this section is liable for 2958 reimbursement of the reasonable costs and fees associated with 2959 the review, processing, investigation, and prosecution of the 2960 fraudulent claim. An applicant that obtains a credit payment 2961 under this section through a claim that is fraudulent is liable 2962 for reimbursement of the credit amount plus a penalty in an 2963 amount double the credit amount. The penalty is in addition to 2964 any criminal penalty to which the applicant is liable for the 2965 same acts. The applicant is also liable for costs and fees 2966 incurred by the state in investigating and prosecuting the 2967 fraudulent claim. 2968 (9) ANNUAL REPORT.—Each October 1, the Office of Film and 2969 Entertainment shall provide an annual report for the previous 2970 fiscal year to the Governor, the President of the Senate, and 2971 the Speaker of the House of Representatives which outlines the 2972 return on investment and economic benefits to the state. 2973 (10) REPEAL.—This section is repealed July 1, 2015, except 2974 that the tax credit carryforward provided in this section shall 2975 continue to be valid for the period specified. 2976 Section 20. Effective July 1, 2010, subsection (5) of 2977 section 288.1258, Florida Statutes, is amended to read: 2978 288.1258 Entertainment industry qualified production 2979 companies; application procedure; categories; duties of the 2980 Department of Revenue; records and reports.— 2981 (5) RELATIONSHIP OF TAX EXEMPTIONS AND INCENTIVES TO 2982 INDUSTRY GROWTH; REPORT TO THE LEGISLATURE.—The Office of Film 2983 and Entertainment shall keep annual records from the information 2984 provided on taxpayer applications for tax exemption certificates 2985 beginning January 1, 2001. These records shall reflect a ratio 2986percentage comparisonof the annual amount offunds exempted2987 sales and use tax exemptions under this section and incentives 2988 awarded pursuant to s. 288.1284 to the estimated amount of funds 2989 expended by certified productions, including productions that 2990 received incentives pursuant to s. 288.1254in relation to2991entertainment industry products. These records also shall 2992 reflect a separate ratio of the annual amount of sales and use 2993 tax exemptions under this section, plus the incentives awarded 2994 pursuant to s. 288.1254 to the estimated amount of funds 2995 expended by certified productions. In addition, the office shall 2996 maintain data showing annual growth in Florida-based 2997 entertainment industry companies and entertainment industry 2998 employment and wages. The Office of Film and Entertainment shall 2999 report this information to the Legislaturebyno later than 3000 December 1 of each year. 3001 Section 21. Effective July 1, 2010, section 288.9552, 3002 Florida Statutes, is created to read: 3003 288.9552 Florida Research Commercialization Matching Grant 3004 Program.— 3005 (1) PURPOSE; GOALS AND OBJECTIVES; CREATION OF PROGRAM.— 3006 (a) The purpose of the Florida Research Commercialization 3007 Matching Grant Program is to increase the amount of federal 3008 funding to this state which will produce the kind of distinctive 3009 technologies that drive today’s knowledge-based economy. By 3010 leveraging federal, state, and private-sector resources, the 3011 Legislature intends that program accelerate the innovation 3012 process and more efficiently transform research results into 3013 products in the marketplace. 3014 (b) The matching grant program is specifically intended to 3015 be a catalyst for small or startup companies that can take 3016 advantage of federal and state partnerships in order to 3017 accelerate their growth and market penetration by helping them 3018 to overcome the funding gap faced by many small companies that 3019 are based in this state. Specific goals and objectives of the 3020 program include: 3021 1. Increasing the amount of federal research moneys 3022 received by small businesses in this state through awards from 3023 the Small Business Innovation Research Program and the Small 3024 Business Technology Transfer Program of the Office of Technology 3025 of the United States Small Business Administration. 3026 2. Accelerating the entry of new technology-based products 3027 into the marketplace. 3028 3. Producing additional technology-based jobs for the 3029 state. 3030 4. Providing leveraged resources to increase the 3031 effectiveness and success of applicants’ projects. 3032 5. Speeding commercialization of promising technologies. 3033 6. Encouraging the establishment and growth of high 3034 quality, advanced technology firms in the state. 3035 7. Accelerating the rate of investment and enhancing the 3036 state’s investment infrastructure. 3037 (c) The Florida Research Commercialization Matching Grant 3038 Program is created for the purpose of accomplishing the goals 3039 and objectives specified in this section. 3040 (2) ADMINISTRATION.—The Florida Institute for the 3041 Commercialization of Public Research shall develop programmatic 3042 policy, ensure statewide applicability of the matching grant 3043 program, establish criteria for grant awards, approve grant 3044 awards, and review program progress and results. 3045 (3) ELIGIBILITY GUIDELINES.—A qualified applicant must: 3046 (a) Be a business entity that is registered with the 3047 Secretary of State to operate in this state. The qualified 3048 applicant must also have its primary office and a majority of 3049 its employees domiciled in Florida, and its principal research 3050 activities must be conducted in the state. 3051 (b) Be a small company for which a state matching grant is 3052 necessary for project development and implementation. 3053 (c) Have received a Phase I award under the federal Small 3054 Business Innovation Research Program or Small Business 3055 Technology Transfer Program and have received an invitation to 3056 submit an application for a Phase II award. If a Phase II award 3057 has already been issued, the end date of the federal award must 3058 be identified and justification must be provided as to how these 3059 additional funds will enhance, not supplant, the existing award. 3060 (d) Use federal, local, and private resources to the 3061 maximum extent possible. Total project funding shall demonstrate 3062 that: 3063 1. Private-sector investments offset the total cost of the 3064 project; and 3065 2. At least 75 percent of the project’s total funding is 3066 from sources other than the state grant. 3067 (e) Conduct the project funded by the matching grant 3068 program in this state. 3069 (4) PROGRAM ADMINISTRATOR.—Subject to appropriations, the 3070 Florida Institute for the Commercialization of Public Research 3071 shall serve as program administrator. The institute may contract 3072 for the performance of a technology review and related functions 3073 with a third party. Not more than 5 percent of a legislative 3074 appropriation may be used for administrative purposes. The 3075 responsibilities of the program administrator include, but are 3076 not limited to: 3077 (a) Coordinating and supporting the grant review, approval, 3078 and contracting activities; 3079 (b) Administering the grant-selection process, including, 3080 but not limited to, issuing open-call requests for grant 3081 applications and receiving, reviewing, and processing grant 3082 applications; 3083 (c) Serving as grant contract manager for recipients of a 3084 matching grant; 3085 (d) Reporting program progress and results; and 3086 (e) Establishing a mechanism by which information regarding 3087 grant projects may be made available to facilitate additional 3088 investment by individual investors, investment for early start 3089 up costs, or venture capital investment. 3090 (5) APPLICATION REVIEW.—An application for a matching grant 3091 award must be reviewed and approved or denied within 45 days 3092 after receipt. 3093 (6) FIDUCIARY.—The institute shall award a grant to a 3094 qualified applicant if: 3095 (a) The qualified applicant demonstrates that it has 3096 obtained a Phase II award under the federal Small Business 3097 Innovation Research Program or Small Business Technology 3098 Transfer Program; and 3099 (b) The qualified applicant executes a performance contract 3100 with the institute. 3101 3102 The institute shall release the grant to a qualified applicant 3103 upon completion of all contract requirements. 3104 (7) AWARDS.—The matching grant program may make one-time 3105 awards of up to $250,000 per project to a qualified applicant. 3106 (8) REPORTING.—Beginning December 1, 2011, and annually 3107 thereafter, the institute shall transmit a report relating to 3108 the grants awarded under the program to the Governor, the 3109 President of the Senate, and the Speaker of the House of 3110 Representatives for the previous fiscal year. 3111 Section 22. Effective July 1, 2010, section 290.00677, 3112 Florida Statutes, is amended to read: 3113 290.00677 Rural enterprise zones; special qualifications.— 3114 (1) Notwithstanding the enterprise zone residency 3115 requirements set out in s. 212.096(1)(c), eligible businesses as 3116 defined by s. 212.096(1)(a), located in rural enterprise zones 3117 as defined by s. 290.004, may receive the basic minimum credit 3118 provided under s. 212.096 for creating a new job and hiring a 3119 person residing within the jurisdiction of a rural community 3120county, as defined by s. 288.106(2)s.288.106(1)(r). All other 3121 provisions of s. 212.096, including, but not limited to, those 3122 relating to the award of enhanced credits, apply to such 3123 businesses. 3124 (2) Notwithstanding the enterprise zone residency 3125 requirements set out in s. 220.03(1)(q), businesses as defined 3126 by s. 220.03(1)(c), located in rural enterprise zones as defined 3127 in s. 290.004, may receive the basic minimum credit provided 3128 under s. 220.181 for creating a new job and hiring a person 3129 residing within the jurisdiction of a rural communitycounty, as 3130 defined by s. 288.106(2)s.288.106(1)(r). All other provisions 3131 of s. 220.181, including, but not limited to, those relating to 3132 the award of enhanced credits apply to such businesses. 3133 Section 23. Effective July 1, 2010, section 373.441, 3134 Florida Statutes, is amended to read: 3135 373.441 Role of counties, municipalities, and local 3136 pollution control programs in permit processing; delegation.— 3137 (1) The departmentin consultation with the water3138management districtsshall, by December 1, 1994, adopt rules to 3139 guide the participation of counties, municipalities, and local 3140 pollution control programs in an efficient, streamlined 3141 permitting system. Such rules mustshallseek to increase 3142 governmental efficiency,shallmaintain environmental standards, 3143 andshallinclude consideration ofthe following: 3144 (a) Provisions under which the environmental resource 3145 permit program areshall bedelegated, upon approval of the 3146 departmentand the appropriate water management districts, only 3147 to a county, municipality, or local pollution control program 3148 thatwhichhas the financial, technical, and administrative 3149 capabilities and desire to implement and enforce the program; 3150 (b) Provisions under which a locally delegated permit 3151 program may have stricter environmental standards than state 3152 standards; 3153 (c) Provisions for identifying and reconciling any 3154 duplicative permitting by January 1, 1995; 3155 (d) Provisions for timely and cost-efficient notification 3156 by the reviewing agency of permit applications, and permit 3157 requirements, to counties, municipalities, local pollution 3158 control programs, the department, or water management districts, 3159 as appropriate; 3160 (e) Provisions for ensuring the consistency of permit 3161 applications with local comprehensive plans; 3162 (f) Provisions for the partial delegation of the 3163 environmental resource permit program to counties, 3164 municipalities, or local pollution control programs, and 3165 standards and criteria to be employed in the implementation of 3166 such delegation by counties, municipalities, and local pollution 3167 control programs; 3168 (g) Special provisions under which the environmental 3169 resource permit program may be delegated to counties havingwith3170 populations of 75,000 or fewerless, or municipalities with, or 3171 local pollution control programs serving, populations of 50,000 3172 or fewerless;and3173 (h) Provisions for the applicability of chapter 120 to 3174 local government programs when the environmental resource permit 3175 program is delegated to counties, municipalities, or local 3176 pollution control programs; and 3177 (i) Provisions for a local government to petition the 3178 Governor and Cabinet for the review of a request for a 3179 delegation of authority which has not been approved or denied 3180 within 1 year after being initiated. 3181 (2) Any denial by the department of a local government’s 3182 request for a delegation of authority must provide specific 3183 detail of those statutory or rule provisions that were not 3184 satisfied. Such detail shall also include specific actions that 3185 can be taken in order to allow for the delegation of authority. 3186 A local government, upon being denied a request for a delegation 3187 of authority, may petition the Governor and Cabinet for a review 3188 of the request. The Governor and Cabinet may reverse the 3189 decision of the department and may provide any necessary 3190 conditions to allow the delegation of authority to occur. 3191 (3) Delegation of authority shall be approved if the local 3192 government meets the requirements set forth in rule 62-344, 3193 Florida Administrative Code. This section does not require a 3194 local government to seek delegation of the environmental 3195 resource permit program. 3196 (4)(2)Nothing in this section affects or modifies land 3197 development regulations adopted by a local government to 3198 implement its comprehensive plan pursuant to chapter 163. 3199 (5)(3)The department shall review environmental resource 3200 permit applications for electrical distribution and transmission 3201 lines and other facilities related to the production, 3202 transmission, and distribution of electricity which are not 3203 certified under ss. 403.52-403.5365, the Florida Electric 3204 Transmission Line Siting Act, regulated under this part. 3205 Section 24. Effective July 1, 2010, subsection (41) is 3206 added to section 403.061, Florida Statutes, to read: 3207 403.061 Department; powers and duties.—The department shall 3208 have the power and the duty to control and prohibit pollution of 3209 air and water in accordance with the law and rules adopted and 3210 promulgated by it and, for this purpose, to: 3211 (41) Expand the use of online self-certification for 3212 appropriate exemptions and general permits issued by the 3213 department or the water management districts if such expansion 3214 is economically feasible. Notwithstanding any other provisions 3215 of law, a local government may not specify the method or form 3216 for documenting that a project qualifies for an exemption or 3217 meets the requirements for a permit under chapter 161, chapter 3218 253, chapter 373, or this chapter. This preclusion of local 3219 government authority extends to Internet-based department 3220 programs that provide for self-certification. 3221 3222 The department shall implement such programs in conjunction with 3223 its other powers and duties and shall place special emphasis on 3224 reducing and eliminating contamination that presents a threat to 3225 humans, animals or plants, or to the environment. 3226 Section 25. The Office of Program Policy Analysis and 3227 Government Accountability shall review and evaluate the Florida 3228 Enterprise Zone Program in ss. 290.001-290.014, Florida 3229 Statutes, over the 2010 interim, and submit a report of its 3230 findings and recommendations to the Governor, the President of 3231 the Senate, and the Speaker of the House of Representatives by 3232 January 11, 2011. The review shall include, but need not be 3233 limited to: how the program has changed over the years since it 3234 was created; whether the program is effectively and efficiently 3235 addressing the issues that precipitated its creation; the direct 3236 and indirect costs of the program to the state and local 3237 governments that participate; whether the program’s tax 3238 incentives are effectively designed to benefit economically 3239 distressed or high-poverty areas and their residents and 3240 business owners; and whether the application, review, and 3241 approval processes are transparent, effective, and efficient. 3242 Section 26. Funds in Specific Appropriation 2649 of chapter 3243 2008-152, Laws of Florida, for Space and Aerospace 3244 Infrastructure to make improvements to Launch Complex 36 on the 3245 45th Space Wing property may also be used for improvements to 3246 other launch complexes and space transportation facilities in 3247 order to attract new space vehicle testing and launch businesses 3248 to the state; to address intermodal requirements and impacts of 3249 the launch ranges, spaceports, and other space transportation 3250 facilities; to advance aerospace technology to meet the current 3251 and future needs of the United States commercial space 3252 transportation industry; and to assist in the development of 3253 joint-use facilities and technology that support aviation and 3254 aerospace operations, including high-altitude and suborbital 3255 flights and range technology development. 3256 Section 27. Effective July 1, 2010, the following 3257 appropriations for the 2010-2011 state fiscal year are 3258 authorized: 3259 (1) To the Office of Tourism, Trade, and Economic 3260 Development within the Office of the Governor, the sum of 3261 $3,839,943 in nonrecurring funds from the General Revenue Fund 3262 to fund the operations of Space Florida. 3263 (2) To the Space Business Investment and Financial Services 3264 Trust Fund, the sum of $10 million in nonrecurring funds from 3265 the General Revenue Fund. Notwithstanding s. 216.301 and 3266 pursuant to s. 216.351, any remaining funds from this 3267 appropriation as of June 30, 2011, shall remain in the trust 3268 fund and be available for carrying out the purpose of the trust 3269 fund. 3270 (3) To the Office of Tourism, Trade, and Economic 3271 Development within the Office of the Governor, the sum of $3 3272 million in nonrecurring general revenue for the exclusive 3273 purpose of providing targeted-business-development support 3274 services and business recruitment through Space Florida. 3275 Activities and services may include securing federal programs 3276 and processes, identifying and securing new contract and grant 3277 opportunities for Florida businesses, assisting businesses in 3278 establishing operations, securing necessary qualifications and 3279 approvals, obtaining capital, and engaging company and federal 3280 officials to site new program elements including research, 3281 design, testing, and manufacturing work packages in Florida. 3282 Emphasis will be placed on assisting small- to medium-sized 3283 businesses on a statewide basis. These funds may not be used for 3284 administrative or operational costs of Space Florida. 3285 (4) To the Office of Tourism, Trade and Economic 3286 Development within the Office of the Governor, the sum of $3.2 3287 million in nonrecurring general revenue exclusively for Space 3288 Florida to retrain workers as the result of the retirement of 3289 the Space Shuttle Program. 3290 Section 28. (1) The Legislature finds that it is in the 3291 best interests of the state to identify surplus properties and 3292 dispose of properties owned by the state which are unnecessary 3293 to achieving the state’s responsibilities, which may cost more 3294 to maintain than the revenue generated, and which serve no 3295 public purpose. 3296 (2) On or before July 1, 2010, and annually thereafter, all 3297 state agencies owning or operating state-owned real property 3298 shall submit inventory data to the Department of Environmental 3299 Protection in a format as prescribed by the department. 3300 (3) By October 1, 2010, and annually thereafter, the 3301 Department of Environmental Protection shall submit to the 3302 Governor, the President of the Senate, and the Speaker of the 3303 House of Representatives a report that lists state-owned real 3304 property recommended for disposition. 3305 (4) Consistent with federal law and any bond covenants, the 3306 proceeds of the sale of real property under this section shall 3307 be deposited in the General Revenue Fund to be used, to the 3308 extent practical, for activities supporting economic development 3309 or as directed by the Legislature. 3310 Section 29. Before the 2013 Regular Session of the 3311 Legislature, the Office of Program Policy Analysis and 3312 Government Accountability shall conduct a review and evaluation 3313 of the effectiveness and viability of the Florida Research 3314 Commercialization Matching Grant Program. The office shall 3315 specifically evaluate the use of federal grants and private 3316 investment and the creation of new businesses and jobs. The 3317 office shall also recommend outcome measures for further 3318 evaluation of the program. The office shall submit a report of 3319 its findings and recommendations to the Governor, the President 3320 of the Senate, and the Speaker of the House of Representatives 3321 by January 15, 2013. 3322 Section 30. The Legislature hereby reauthorizes the 3323 following: 3324 (1) Any exemption granted for any project for which an 3325 application for development approval has been approved or filed 3326 pursuant to s. 380.06, Florida Statutes, or for which a complete 3327 development application or rescission request has been approved 3328 or is pending, and the application or rescission process is 3329 continuing in good faith, within a development that is located 3330 within an area that qualified for an exemption under s. 380.06, 3331 Florida Statutes, as amended by chapter 2009-96, Laws of 3332 Florida. 3333 (2) Any 2-year extension authorized and timely applied for 3334 pursuant to section 14 of chapter 2009-96, Laws of Florida. 3335 (3) Any amendment to a local comprehensive plan adopted 3336 pursuant to s. 163.3184, Florida Statutes, as amended by chapter 3337 2009-96, Laws of Florida, which authorizes and implements a 3338 transportation concurrency exception area pursuant to s. 3339 163.3180, Florida Statutes, as amended by chapter 2009-96, Laws 3340 of Florida. 3341 (4) This section is intended to be remedial in nature and 3342 to reenact provisions of existing law. This act shall apply 3343 retroactively to all actions addressed in this section and 3344 therefore to any such actions pending as of the effective date 3345 of this act. 3346 Section 31. (1) Except as provided in subsection (4), a 3347 development order issued by a local government, building permit, 3348 permit issued by the Department of Environmental Protection, or 3349 permit issued by a water management district pursuant to part IV 3350 of chapter 373, Florida Statutes, which has an expiration date 3351 from September 1, 2008, through January 1, 2012, is extended and 3352 renewed for a period of 2 years following its previously 3353 scheduled date of expiration. This 2-year extension also applies 3354 to build-out dates including any extension of build-out date 3355 that was granted previously under s. 380.06(19)(c), Florida 3356 Statutes. This section does not prohibit conversion from the 3357 construction phase to the operation phase upon completion of 3358 construction. This extension is in addition to a 2-year permit 3359 extension under s. 14 of chapter 2009-96, Laws of Florida. 3360 (2) The commencement and completion dates for any required 3361 mitigation associated with a phased construction project are 3362 extended such that mitigation takes place in the same timeframe 3363 relative to the phase as originally permitted. 3364 (3) The holder of a valid permit or other authorization 3365 that is eligible for the 2-year extension must notify the 3366 authorizing agency in writing by December 31, 2010, identifying 3367 the specific authorization for which the holder intends to use 3368 the extension and the anticipated timeframe for acting on the 3369 authorization. 3370 (4) The extension provided for in subsection (1) does not 3371 apply to: 3372 (a) A permit or other authorization under any programmatic 3373 or regional general permit issued by the Army Corps of 3374 Engineers. 3375 (b) A permit or other authorization held by an owner or 3376 operator determined to be in significant noncompliance with the 3377 conditions of the permit or authorization as established through 3378 the issuance of a warning letter or notice of violation, the 3379 initiation of formal enforcement, or other equivalent action by 3380 the authorizing agency. 3381 (c) A permit or other authorization, if granted an 3382 extension that would delay or prevent compliance with a court 3383 order. 3384 (5) Permits extended under this section shall continue to 3385 be governed by rules in effect at the time the permit was 3386 issued, except if it can be demonstrated that the rules in 3387 effect at the time the permit was issued would create an 3388 immediate threat to public safety or health. This provision 3389 applies to any modification of the plans, terms, and conditions 3390 of the permit which lessens the environmental impact, except 3391 that any such modification does not extend the time limit beyond 3392 2 additional years. 3393 (6) This section does not impair the authority of a county 3394 or municipality to require the owner of a property that has 3395 notified the county or municipality of the owner’s intention to 3396 receive the extension of time granted by this section to 3397 maintain and secure the property in a safe and sanitary 3398 condition in compliance with applicable laws and ordinances. 3399 Section 32. Section 47 of chapter 2009-82, Laws of Florida, 3400 is amended to read: 3401 Section 47. In order to implement Specific Appropriation 3402 1570 of the 2009-2010 General Appropriations Act: 3403 (1) The intent of the Legislature is to ensure that 3404 residents of the state derive the maximum possible economic 3405 benefit from the federal first-time homebuyer tax credit created 3406 through The American Recovery and Reinvestment Act of 2009 by 3407 providing subordinate down payment assistance loans to first 3408 time homebuyers for owner-occupied primary residences which can 3409 be repaid by the income tax refund the homebuyer is entitled to 3410 under the First Time Homebuyer Credit. The state program shall 3411 be called the “Florida Homebuyer Opportunity Program.” 3412 (2) The Florida Housing Finance Corporation shall 3413 administer the Florida Homebuyer Opportunity Program to optimize 3414 eligibility for conventional, VA, USDA, FHA, and other loan 3415 programs through the State Housing Initiatives Partnership 3416 program in accordance with ss. 420.907-420.9079, Florida 3417 Statutes, and the provisions of this section. 3418 (3) Prior to December 1, 2009, or any later date 3419 established by the Internal Revenue Service for such purchases, 3420 counties and eligible municipalities receiving funds shall 3421 expend the funds appropriated under Specific Appropriation 1570A 3422 only to provide subordinate loans to prospective first-time 3423 homebuyers under the Florida Homebuyer Opportunity Program 3424 pursuant to this section, except that up to 10 percent of such 3425 funds may be used to cover administrative expenses of the 3426 counties and eligible municipalities to implement the Florida 3427 Homebuyer Opportunity Program, and not more than .25 percent may 3428 be used to compensate the Florida Housing Finance Corporation 3429 for the expenses associated with compliance monitoring. The 3430 funds appropriated under Specific Appropriation 1570A may not be 3431 used for any other program currently existing under ss. 420.907 3432 420.9079, Florida Statutes. Thereafter, the funds shall be 3433 expended in accordance with ss. 420.907-420.9079, Florida 3434 Statutes. 3435 (4) Notwithstanding s. 420.9075, Florida Statutes, for 3436 purposes of the Florida Homebuyer Opportunity Program, the 3437 following exceptions shall apply: 3438 (a) The maximum income limit shall be an adjusted gross 3439 income of $75,000 for single taxpayer households or $150,000 for 3440 joint-filing taxpayer households, which is equal to that 3441 permitted by the American Recovery and Reinvestment Act of 2009; 3442 (b) There is no requirement to reserve 30 percent of the 3443 funds for awards to very-low-income persons or 30 percent of the 3444 funds for awards to low-income persons; 3445 (c) There is no requirement to expend 75 percent of funds 3446 for construction, rehabilitation, or emergency repair; and 3447 (d) The principal balance of the loans provided may not 3448 exceed 10 percent of the purchase price or $8,000, whichever is 3449 less. 3450 (5) Funds shall be expended under a newly created strategy 3451 in the local housing assistance plan to implement the Florida 3452 Homebuyer Opportunity Program. 3453 (6) The homebuyer shall be expected to use their federal 3454 income tax refund to fully repay the loan. If the county or 3455 eligible municipality receives repayment from the homebuyer 3456 within 18 months after the closing date of the loan, the county 3457 or eligible municipality shall waive all interest charges. A 3458 homebuyer who fails to fully repay the loan within the earlier 3459 of 18 months or 10 days after the receipt of their federal 3460 income tax refund, shall be subject to repayment terms provided 3461 in the local housing assistance plan, including penalties for 3462 not using his or her refund for repayment. Penalties may not 3463 exceed 10 percent of the loan amount and shall be included in 3464 the loan agreement with the homebuyer. 3465 (7) All funds repaid to a county or eligible municipality 3466 shall be considered “program income” as defined in s. 3467 420.9071(24), Florida Statutes. 3468 (8) In order to maximize the effect of the funding, the 3469 counties and eligible municipalities are encouraged to work with 3470 private lenders to provide additional funds to support the 3471 initiative. However, in all instances, the counties and eligible 3472 municipalities shall make and hold the subordinate loan. 3473 (9) This section expires July 1, 20112010. 3474 Section 33. Preference to Florida residents.— 3475 (1) Each contract for construction which is funded by state 3476 funds must contain a provision requiring the contractor to give 3477 preference to the employment of state residents in the 3478 performance of the work on the project if state residents have 3479 substantially equal qualifications to those of nonresidents. A 3480 contract for construction funded by local funds may contain such 3481 a provision. 3482 (a) As used in this section, “substantially equal 3483 qualifications” means the qualifications of two or more persons 3484 among whom the employer cannot make a reasonable determination 3485 that the qualifications held by one person are better suited for 3486 the position than the qualifications held by the other parties. 3487 (b) A contractor required to employ Florida residents must 3488 contact the Agency for Workforce Innovation to post the 3489 contractor’s employment needs in the state’s job bank system. 3490 (2) No contract shall be let to any person refusing to 3491 execute an agreement containing the aforementioned provisions. 3492 However, in work involving the expenditure of federal aid funds, 3493 this section may not be enforced in such a manner as to conflict 3494 with or be contrary to federal law prescribing a labor 3495 preference to honorably discharged soldiers, sailors, and 3496 marines, or prohibiting as unlawful any other preference or 3497 discrimination among the citizens of the United States. 3498 Section 34. The sum of $10 million is appropriated from the 3499 General Revenue Fund to the Florida Institute for the 3500 Commercialization of Public Research for the 2010-2011 fiscal 3501 year to fund the Phase I Florida Research Commercialization 3502 Matching Grants authorized in s. 288.9552, Florida Statutes. 3503 Section 35. Subject to an appropriation by the Legislature, 3504 funds shall be made available to the Board of Governors of the 3505 State University System from the General Revenue Fund solely to 3506 provide early stage seed-capital funding to proposals applying 3507 for the State University Research Commercialization Assistance 3508 Grant Program created by s. 2 of chapter 2007-189, Laws of 3509 Florida. Funds must be disbursed by the Board of Governors 3510 pursuant to grant agreements and contracts by the Florida 3511 Technology, Research, and Scholarship Board. 3512 Section 36. The sum of $5 million in nonrecurring general 3513 revenue shall be provided to the Florida Export Finance 3514 Corporation for the purpose of capitalizing a self-sustaining 3515 cash collateral fund to be available to lenders participating in 3516 the corporation’s existing loan guarantee program. The cash 3517 collateral fund must complement the corporation’s existing loan 3518 and loan guarantee programs and otherwise comply with the 3519 requirements of part V of chapter 288, Florida Statutes. 3520 Section 37. The Legislature finds that this act fulfills an 3521 important state interest. 3522 Section 38. If any provision of this act or the application 3523 thereof to any person or circumstance is held invalid, the 3524 invalidity does not affect other provisions or applications of 3525 this act which can be given effect without the invalid provision 3526 or application, and to this end the provisions of this act are 3527 severable. 3528 Section 39. Except as otherwise expressly provided in this 3529 act, this act shall take effect upon becoming a law.