Bill Text: FL S1856 | 2010 | Regular Session | Introduced

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

---

Bill Title: Qualified Target Industry Tax Refund Program [WPSC]

Spectrum: Unknown

Status: (N/A - Dead) 2010-04-28 - Placed on Special Order Calendar; Read 2nd time -SJ 00955; Substituted CS/HB 7109 -SJ 00955; Laid on Table, companion bill(s) passed, see CS/HB 7109 (Ch. 2010-136), CS/SB 1752 (Ch. 2010-147) -SJ 00955 [S1856 Detail]

Download: Florida-2010-S1856-Introduced.html

---

 
Florida Senate - 2010                                    SB 1856 
 
By the Committee on Commerce 
577-02038-10                                          20101856__ 
1                        A bill to be entitled 
2         An act relating to qualified target industry tax 
3         refund program; amending s. 288.106, F.S.; providing 
4         legislative findings and declarations for the tax 
5         refund program for qualified target industry 
6         businesses; revising the definitions of terms 
7         applicable to the program; revising the criteria for 
8         the Office of Tourism, Trade, and Economic Development 
9         and Enterprise Florida, Inc., to use in identifying 
10         target industry businesses; conforming cross 
11         references to changes made by the act; deleting ad 
12         valorem taxes from the types of taxes that may be 
13         refunded under the program; requiring an application 
14         for certification as a qualified target industry 
15         business to include an estimate of the proportion of 
16         the machinery, equipment, and other resources that 
17         will be used in the applicant’s proposed operation in 
18         Florida and purchased by the applicant outside the 
19         state; requiring the Office of Tourism, Trade, and 
20         Economic Development to consider the state’s return on 
21         investment in evaluating applicants for the tax refund 
22         program; redesignating the economic-stimulus exemption 
23         as the “economic recovery extension”; extending the 
24         date by which a qualified target industry business may 
25         request an economic recovery extension; authorizing 
26         the Office of Tourism, Trade, and Economic Development 
27         to waive the requirement for a business to annually 
28         provide proof of taxes paid if the business provides 
29         proof that it has paid certain taxes in amounts at 
30         least equal to the total amount of refunds for which 
31         the business is eligible; requiring the Office of 
32         Tourism, Trade, and Economic Development to conduct a 
33         review of certain qualified target industry businesses 
34         that have received their final tax refund and provide 
35         a report of its findings and recommendations to the 
36         Governor, the President of the Senate, and the Speaker 
37         of the House of Representatives; extending the date by 
38         which businesses may apply to participate in the tax 
39         refund program for qualified target industry 
40         businesses; amending ss. 288.107 and 290.00677, F.S.; 
41         conforming cross-references to changes made by the 
42         act; providing an effective date. 
43 
44  Be It Enacted by the Legislature of the State of Florida: 
45 
46         Section 1. Section 288.106, Florida Statutes, is amended, 
47  and subsection (2) of that section is reordered, to read: 
48         288.106 Tax refund program for qualified target industry 
49  businesses.— 
50         (1) LEGISLATIVE FINDINGS AND DECLARATIONS.—The Legislature 
51  finds that retaining and expanding existing businesses in 
52  Florida, encouraging the creation of new businesses in Florida, 
53  attracting new businesses from out of state, and generally 
54  providing conditions favorable for the growth of target 
55  industries creates high-quality, high-wage employment 
56  opportunities for the residents of this state and strengthens 
57  Florida’s economic foundation. The Legislature also finds that 
58  incentives that are narrowly focused in application and scope 
59  tend to be more effective at achieving the state’s economic 
60  development goals. Further, the Legislature finds that higher 
61  wage jobs reduce the state’s share of hidden costs such as 
62  public assistance and subsidized health care associated with 
63  low-wage jobs. Therefore, the Legislature declares that it is 
64  the policy of this state to encourage the growth of higher-wage 
65  jobs and a diverse economic base by providing state tax refunds 
66  to qualified target industry businesses that originate or expand 
67  in this state or that relocate to this state. 
68         (2)(1) DEFINITIONS.—As used in this section: 
69         (a) “Account” means the Economic Development Incentives 
70  Account within the Economic Development Trust Fund established 
71  under s. 288.095. 
72         (c)(b) “Average private sector wage in the area” means the 
73  statewide private sector average wage or the average of all 
74  private sector wages and salaries in the county or in the 
75  standard metropolitan area in which the business is located. 
76         (d)(c) “Business” means an employing unit, as defined in s. 
77  443.036, which is registered for unemployment compensation 
78  purposes with the state agency providing unemployment tax 
79  collection services under contract with the Agency for Workforce 
80  Innovation through an interagency agreement pursuant to s. 
81  443.1316, or a subcategory or division of an employing unit 
82  which is accepted by the state agency providing unemployment tax 
83  collection services as a reporting unit. 
84         (e)(d) “Corporate headquarters business” means an 
85  international, national, or regional headquarters office of a 
86  multinational or multistate business enterprise or national 
87  trade association, whether separate from or connected with other 
88  facilities used by such business. 
89         (n)(e) “Office” means the Office of Tourism, Trade, and 
90  Economic Development. 
91         (g)(f) “Enterprise zone” means an area designated as an 
92  enterprise zone pursuant to s. 290.0065. 
93         (h)(g) “Expansion of an existing business” means the 
94  expansion of an existing Florida business by or through 
95  additions to real and personal property, resulting in a net 
96  increase in employment of not less than 10 percent at such 
97  business. 
98         (i)(h) “Fiscal year” means the fiscal year of the state. 
99         (j)(i) “Jobs” means full-time equivalent positions, as that 
100  term is consistent with terms used by the Agency for Workforce 
101  Innovation and the United States Department of Labor for 
102  purposes of unemployment compensation tax administration and 
103  employment estimation, resulting directly from a project in this 
104  state. The term does not include temporary construction jobs 
105  involved with the construction of facilities for the project or 
106  any jobs previously included in any application for tax refunds 
107  under s. 288.1045 or this section. 
108         (k)(j) “Local financial support” means funding from local 
109  sources, public or private, which is paid to the Economic 
110  Development Trust Fund and which is equal to 20 percent of the 
111  annual tax refund for a qualified target industry business. A 
112  qualified target industry business may not provide, directly or 
113  indirectly, more than 5 percent of such funding in any fiscal 
114  year. The sources of such funding may not include, directly or 
115  indirectly, state funds appropriated from the General Revenue 
116  Fund or any state trust fund, excluding tax revenues shared with 
117  local governments pursuant to law. 
118         (l)(k) “Local financial support exemption option” means the 
119  option to exercise an exemption from the local financial support 
120  requirement available to any applicant whose project is located 
121  in a brownfield area or a rural community county with a 
122  population of 75,000 or fewer or a county with a population of 
123  125,000 or fewer which is contiguous to a county with a 
124  population of 75,000 or fewer. Any applicant that exercises this 
125  option is shall not be eligible for more than 80 percent of the 
126  total tax refunds allowed such applicant under this section. 
127         (m)(l) “New business” means a business that applies for the 
128  qualified target industry refund program before beginning 
129  operations which heretofore did not exist in this state, first 
130  beginning operations on a site located in this state and is a 
131  clearly separate legal entity from any other commercial or 
132  industrial operations owned by the same business. 
133         (o)(m) “Project” means the creation of a new business or 
134  expansion of an existing business. 
135         (f)(n) “Director” means the Director of the Office of 
136  Tourism, Trade, and Economic Development. 
137         (t)(o) “Target industry business” means a corporate 
138  headquarters business or any business that is engaged in one of 
139  the target industries identified pursuant to the following 
140  criteria developed by the office in consultation with Enterprise 
141  Florida, Inc.: 
142         1. Future growth.—Industry forecasts should indicate strong 
143  expectation for future growth in both employment and output, 
144  according to the most recent available data. Preference Special 
145  consideration should be given to businesses that export goods or 
146  services Florida’s growing access to international markets or to 
147  businesses that replace domestic and international replacing 
148  imports of goods or services. 
149         2. Stability.—The industry should not be subject to 
150  periodic layoffs, whether due to seasonality or sensitivity to 
151  volatile economic variables such as weather. The industry should 
152  also be relatively resistant to recession, so that the demand 
153  for products of this industry is not typically necessarily 
154  subject to decline during an economic downturn. 
155         3. High wage.—The industry should pay higher relatively 
156  high wages compared to statewide or area averages. 
157         4. Market and resource independent.—The location of 
158  industry businesses should not be dependent on Florida markets 
159  or resources as indicated by industry analysis, with the 
160  exception of businesses in the renewable-energy industry. 
161  Special consideration should be given to the development of 
162  strong industrial clusters which include defense and homeland 
163  security businesses. 
164         5. Industrial base diversification and strengthening.—The 
165  industry should contribute toward expanding or diversifying the 
166  state’s or area’s economic base, as indicated by analysis of 
167  employment and output shares compared to national and regional 
168  trends. Preference Special consideration should be given to 
169  industries that strengthen regional economies by adding value to 
170  basic products or building regional industrial clusters as 
171  indicated by industry analysis. Additionally, preference should 
172  be given to the development of strong industrial clusters that 
173  include defense and homeland security businesses. 
174         6. Economic benefits.—The industry is expected to should 
175  have strong positive impacts on or benefits to the state or and 
176  regional economies. 
177 
178  The office, in consultation with Enterprise Florida, Inc., shall 
179  develop a list of such target industries annually and submit 
180  such list as part of the final agency legislative budget request 
181  submitted pursuant to s. 216.023(1). A target industry business 
182  may not include any industry engaged in retail activities; any 
183  electrical utility company; any phosphate or other solid 
184  minerals severance, mining, or processing operation; any oil or 
185  gas exploration or production operation; or any business firm 
186  subject to regulation by the Division of Hotels and Restaurants 
187  of the Department of Business and Professional Regulation. 
188         (u)(p) “Taxable year” means taxable year as defined in s. 
189  220.03(1)(y). 
190         (p)(q) “Qualified target industry business” means a target 
191  industry business that has been approved by the director to be 
192  eligible for tax refunds pursuant to this section. 
193         (q) “Return on investment” means the gain in state revenues 
194  as a percentage of the state’s investment. The state’s 
195  investment includes state grants, tax exemptions, tax refunds, 
196  tax credits, and other state incentives. Return on investment is 
197  expressed mathematically as follows: 
198 
199      Return on investment = (gain in state revenues - state’s 
200                   investment)/state’s investment 
201 
202         (r) “Rural county” means a county with a population of 
203  75,000 or fewer or a county with a population of 100,000 or 
204  fewer which is contiguous to a county with a population of 
205  75,000 or fewer. 
206         (r)(s) “Rural city” means a city having with a population 
207  of 10,000 or fewer less, or a city having with a population of 
208  greater than 10,000 but fewer less than 20,000 which has been 
209  determined by the office of Tourism, Trade, and Economic 
210  Development to have economic characteristics such as, but not 
211  limited to, a significant percentage of residents on public 
212  assistance, a significant percentage of residents with income 
213  below the poverty level, or a significant percentage of the 
214  city’s employment base in agriculture-related industries. 
215         (s)(t) “Rural community” means: 
216         1. A county having with a population of 75,000 or fewer. 
217         2. A county having with a population of 125,000 or fewer 
218  which is contiguous to a county having with a population of 
219  75,000 or fewer. 
220         3. A municipality within a county described in subparagraph 
221  1. or subparagraph 2. 
222 
223  For purposes of this paragraph, population shall be determined 
224  in accordance with the most recent official estimate pursuant to 
225  s. 186.901. 
226         (b)(u) “Authorized local economic development agency” means 
227  a any public or private entity, including those defined in s. 
228  288.075, authorized by a county or municipality to promote the 
229  general business or industrial interests of that county or 
230  municipality. 
231         (3)(2) TAX REFUND; ELIGIBLE AMOUNTS.— 
232         (a) There shall be allowed, from the account, a refund to a 
233  qualified target industry business for the amount of eligible 
234  taxes certified by the director which were paid by the such 
235  business. The total amount of refunds for all fiscal years for 
236  each qualified target industry business must be determined 
237  pursuant to subsection (4) (3). The annual amount of a refund to 
238  a qualified target industry business must be determined pursuant 
239  to subsection (6) (5). 
240         (b)1. Upon approval by the director, a qualified target 
241  industry business shall be allowed tax refund payments equal to 
242  $3,000 times the number of jobs specified in the tax refund 
243  agreement under subparagraph (5)(a)1. (4)(a)1., or equal to 
244  $6,000 times the number of jobs if the project is located in a 
245  rural county or an enterprise zone. 
246         2. Further, A qualified target industry business shall be 
247  allowed additional tax refund payments equal to $1,000 times the 
248  number of jobs specified in the tax refund agreement under 
249  subparagraph (5)(a)1. (4)(a)1., if such jobs pay an annual 
250  average wage of at least 150 percent of the average area private 
251  sector wage in the area, or equal to $2,000 times the number of 
252  jobs if such jobs pay an annual average area wage of at least 
253  200 percent of the average area private sector wage in the area. 
254         (c) A qualified target industry business may not receive 
255  refund payments of more than 25 percent of the total tax refunds 
256  specified in the tax refund agreement under subparagraph 
257  (5)(a)1. (4)(a)1. in any fiscal year. Further, a qualified 
258  target industry business may not receive more than $1.5 million 
259  in refunds under this section in any single fiscal year, or more 
260  than $2.5 million in any single fiscal year if the project is 
261  located in an enterprise zone. A qualified target industry 
262  business may not receive more than $5 million in refund payments 
263  under this section in all fiscal years, or more than $7.5 
264  million if the project is located in an enterprise zone.Funds 
265  made available pursuant to this section may not be expended in 
266  connection with the relocation of a business from one community 
267  to another community in this state unless the Office of Tourism, 
268  Trade, and Economic Development determines that without such 
269  relocation the business will move outside this state or 
270  determines that the business has a compelling economic rationale 
271  for the relocation and that the relocation will create 
272  additional jobs. 
273         (d)(c) After entering into a tax refund agreement under 
274  subsection (5) (4), a qualified target industry business may: 
275         1. Receive refunds from the account for the following taxes 
276  due and paid by that business beginning with the first taxable 
277  year of the business which begins after entering into the 
278  agreement: 
279         a. Corporate income taxes under chapter 220. 
280         b. Insurance premium tax under s. 624.509. 
281         2. Receive refunds from the account for the following taxes 
282  due and paid by that business after entering into the agreement: 
283         a. Taxes on sales, use, and other transactions under 
284  chapter 212. 
285         b. Intangible personal property taxes under chapter 199. 
286         c. Emergency excise taxes under chapter 221. 
287         d. Excise taxes on documents under chapter 201. 
288         e. Ad valorem taxes paid, as defined in s. 220.03(1). 
289         e.f. State communications services taxes administered under 
290  chapter 202. This provision does not apply to the gross receipts 
291  tax imposed under chapter 203 and administered under chapter 202 
292  or the local communications services tax authorized under s. 
293  202.19. 
294 
295  The addition of state communications services taxes administered 
296  under chapter 202 is remedial in nature and retroactive to 
297  October 1, 2001. The office may make supplemental tax refund 
298  payments to allow for tax refunds for communications services 
299  taxes paid by an eligible qualified target industry business 
300  after October 1, 2001. 
301         (e)(d) However, a qualified target industry business may 
302  not receive a refund under this section for any amount of 
303  credit, refund, or exemption granted to that business for any of 
304  the such taxes listed in paragraph (d). If a refund for such 
305  taxes is provided by the office, which taxes are subsequently 
306  adjusted by the application of any credit, refund, or exemption 
307  granted to the qualified target industry business other than as 
308  provided in this section, the business shall reimburse the 
309  account for the amount of that credit, refund, or exemption. A 
310  qualified target industry business shall notify and tender 
311  payment to the office within 20 days after receiving any credit, 
312  refund, or exemption other than one provided in this section. 
313         (f) Refunds made available pursuant to this section may not 
314  be expended in connection with the relocation of a business from 
315  one community to another community in this state unless the 
316  office determines that without such relocation the business will 
317  move outside this state, or determines that the business has a 
318  compelling economic rationale for the relocation and that the 
319  relocation will create additional jobs. 
320         (g)(e) A qualified target industry business that 
321  fraudulently claims a refund under this section: 
322         1. Is liable for repayment of the amount of the refund to 
323  the account, plus a mandatory penalty in the amount of 200 
324  percent of the tax refund which shall be deposited into the 
325  General Revenue Fund. 
326         2. Commits Is guilty of a felony of the third degree, 
327  punishable as provided in s. 775.082, s. 775.083, or s. 775.084. 
328         (4)(3) APPLICATION AND APPROVAL PROCESS.— 
329         (a) To apply for certification as a qualified target 
330  industry business under this section, the business must file an 
331  application with the office before the business decides has made 
332  the decision to locate a new business in this state or before 
333  the business decides had made the decision to expand its an 
334  existing operations business in this state. The application must 
335  shall include, but need is not be limited to, the following 
336  information: 
337         1. The applicant’s federal employer identification number 
338  and, if applicable, the applicant’s state sales tax registration 
339  number. 
340         2. The proposed permanent location of the applicant’s 
341  facility in this state at which the project is or is to be 
342  located. 
343         3. A description of the type of business activity or 
344  product covered by the project, including a minimum of a five 
345  digit NAICS code for all activities included in the project. As 
346  used in this paragraph, “NAICS” means those classifications 
347  contained in the North American Industry Classification System, 
348  as published in 2007 by the Office of Management and Budget, 
349  Executive Office of the President, and updated periodically. 
350         4. The proposed number of net new full-time equivalent 
351  Florida jobs at the qualified target industry business as of 
352  December 31 of each year included in the project and the average 
353  wage of those jobs. If more than one type of business activity 
354  or product is included in the project, the number of jobs and 
355  average wage for those jobs must be separately stated for each 
356  type of business activity or product. 
357         5. The total number of full-time equivalent employees 
358  employed by the applicant in this state, if applicable. 
359         6. The anticipated commencement date of the project. 
360         7. A brief statement explaining concerning the role that 
361  the estimated tax refunds to be requested will play in the 
362  decision of the applicant to locate or expand in this state. 
363         8. An estimate of the proportion of the sales resulting 
364  from the project that will be made outside this state. 
365         9. An estimate of the proportion of the cost of the 
366  machinery and equipment, and any other resources necessary in 
367  the development of its product or service, which is to be used 
368  by the business in its Florida operations and which will be 
369  purchased outside this state. 
370         10.9. A resolution adopted by the governing board of the 
371  county or municipality in which the project will be located, 
372  which resolution recommends that the project certain types of 
373  businesses be approved as a qualified target industry business 
374  and specifies states that the commitments of local financial 
375  support necessary for the target industry business exist. In 
376  advance of the passage of such resolution, the office may also 
377  accept an official letter from an authorized local economic 
378  development agency that endorses the proposed target industry 
379  project and pledges that sources of local financial support for 
380  such project exist. For the purposes of making pledges of local 
381  financial support under this subsection, the authorized local 
382  economic development agency shall be officially designated by 
383  the passage of a one-time resolution by the local governing 
384  authority. 
385         11.10. Any additional information requested by the office. 
386         (b) To qualify for review by the office, the application of 
387  a target industry business must, at a minimum, establish the 
388  following to the satisfaction of the office: 
389         1.a. The jobs proposed to be created provided under the 
390  application, pursuant to subparagraph (a)4., must pay an 
391  estimated annual average wage equaling at least 115 percent of 
392  the average area private sector wage in the area where the 
393  business is to be located or the statewide private sector 
394  average wage. In determining the average annual wage, the office 
395  shall include only new proposed jobs, and wages for existing 
396  jobs shall be excluded from this calculation. 
397         b. The office may waive the average wage requirement at the 
398  request of the local governing body recommending the project and 
399  Enterprise Florida, Inc. The director may waive the wage 
400  requirement may only be waived for a project located in a 
401  brownfield area designated under s. 376.80 or in a rural city, 
402  rural community, or county, or in an enterprise zone and only if 
403  when the merits of the individual project or the specific 
404  circumstances in the community in relationship to the project 
405  warrant such action. If the local governing body and Enterprise 
406  Florida, Inc., make such a recommendation, it must be 
407  transmitted in writing and the specific justification for the 
408  waiver recommendation must be explained. If the director elects 
409  to waive the wage requirement, the waiver must be stated in 
410  writing and the reasons for granting the waiver must be 
411  explained. 
412         2. The target industry business’s project must result in 
413  the creation of at least 10 jobs at the such project and, if an 
414  expansion of an existing business, must result in an a net 
415  increase in employment of at least 10 percent at the business. 
416  Notwithstanding the definition of the term “expansion of an 
417  existing business” in paragraph (1)(g), At the request of the 
418  local governing body recommending the project and Enterprise 
419  Florida, Inc., the office may waive this requirement for a 
420  business in a rural community or enterprise zone define an 
421  “expansion of an existing business” in a rural community or an 
422  enterprise zone as the expansion of a business resulting in a 
423  net increase in employment of less than 10 percent at such 
424  business if the merits of the individual project or the specific 
425  circumstances in the community in relationship to the project 
426  warrant such action. If the local governing body and Enterprise 
427  Florida, Inc., make such a request, the request must be 
428  transmitted in writing and the specific justification for the 
429  request must be explained. If the director elects to grant the 
430  request, the grant must be stated in writing and the reason for 
431  granting the request must be explained. 
432         3. The business activity or product for the applicant’s 
433  project is within an industry or industries that have been 
434  identified by the office as a target industry business to be 
435  high-value-added industries that contributes contribute to the 
436  area and to the economic growth of the state and the region in 
437  which it is located, that produces produce a higher standard of 
438  living for residents of this state in the new global economy, or 
439  that can be shown to make an equivalent contribution to the area 
440  and state’s economic progress. The director must approve 
441  requests to waive the wage requirement for brownfield areas 
442  designated under s. 376.80 unless it is demonstrated that such 
443  action is not in the public interest. 
444         (c) Each application meeting the requirements of paragraph 
445  (b) must be submitted to the office for determination of 
446  eligibility. The office shall review and evaluate each 
447  application based on, but not limited to, the following 
448  criteria: 
449         1. Expected contributions to the state economy, consistent 
450  with the state strategic economic development plan adopted by 
451  Enterprise Florida, Inc., taking into account the long-term 
452  effects of the project and of the applicant on the state 
453  economy. 
454         2. The return on investment of the proposed award under the 
455  qualified target industry incentive program and the return on 
456  investment for all state incentives proposed for the project 
457  economic benefit of the jobs created by the project in this 
458  state, taking into account the cost and average wage of each job 
459  created. 
460         3. The amount of capital investment to be made by the 
461  applicant in this state. 
462         4. The local financial commitment and support for the 
463  project. 
464         5. The effect of the project on the unemployment rate in 
465  local community, taking into account the unemployment rate for 
466  the county where the project will be located. 
467         6. The effect of the award any tax refunds granted pursuant 
468  to this section on the viability of the project and the 
469  probability that the project would will be undertaken in this 
470  state if such tax refunds are granted to the applicant, taking 
471  into account the expected long-term commitment of the applicant 
472  to economic growth and employment in this state. 
473         7. The expected long-term commitment of the applicant to 
474  economic growth and employment to this state resulting from the 
475  project. 
476         8. A review of the business’s past activities in this state 
477  or other states, including whether such business has been 
478  subjected to criminal or civil fines and penalties. This 
479  subparagraph does not require the disclosure of confidential 
480  information. 
481         (d) Applications shall be reviewed and certified pursuant 
482  to s. 288.061. The office shall include in its review 
483  projections of the tax refunds the business would be eligible to 
484  receive in each fiscal year based on the creation and 
485  maintenance of the net new Florida jobs specified in 
486  subparagraph (a)4. as of December 31 of the preceding state 
487  fiscal year. If appropriate, the director shall enter into a 
488  written agreement with the qualified target industry business 
489  pursuant to subsection (5) (4). 
490         (e) The director may not certify any target industry 
491  business as a qualified target industry business if the value of 
492  tax refunds to be included in that letter of certification 
493  exceeds the available amount of authority to certify new 
494  businesses as determined in s. 288.095(3). However, if the 
495  commitments of local financial support represent less than 20 
496  percent of the eligible tax refund payments, or to otherwise 
497  preserve the viability and fiscal integrity of the program, the 
498  director may certify a qualified target industry business to 
499  receive tax refund payments of less than the allowable amounts 
500  specified in paragraph (3)(b) (2)(b). A letter of certification 
501  that approves an application must specify the maximum amount of 
502  tax refund that will be available to the qualified industry 
503  business in each fiscal year and the total amount of tax refunds 
504  that will be available to the business for all fiscal years. 
505         (f) This section does not create a presumption that an 
506  applicant shall receive any tax refunds under this section. 
507  However, the office may issue nonbinding opinion letters, upon 
508  the request of prospective applicants, as to the applicants’ 
509  eligibility and the potential amount of refunds. 
510         (5)(4) TAX REFUND AGREEMENT.— 
511         (a) Each qualified target industry business must enter into 
512  a written agreement with the office which specifies, at a 
513  minimum: 
514         1. The total number of full-time equivalent jobs in this 
515  state that will be dedicated to the project, the average wage of 
516  those jobs, the definitions that will apply for measuring the 
517  achievement of these terms during the pendency of the agreement, 
518  and a time schedule or plan for when such jobs will be in place 
519  and active in this state. 
520         2. The maximum amount of tax refunds which the qualified 
521  target industry business is eligible to receive on the project 
522  and the maximum amount of a tax refund that the qualified target 
523  industry business is eligible to receive for each fiscal year, 
524  based on the job creation and maintenance schedule specified in 
525  subparagraph 1. 
526         3. That the office may review and verify the financial and 
527  personnel records of the qualified target industry business to 
528  ascertain whether that business is in compliance with this 
529  section. 
530         4. The date by which, in each fiscal year, the qualified 
531  target industry business may file a claim under subsection (6) 
532  (5) to be considered to receive a tax refund in the following 
533  fiscal year. 
534         5. That local financial support will be annually available 
535  and will be paid to the account. The director may not enter into 
536  a written agreement with a qualified target industry business if 
537  the local financial support resolution is not passed by the 
538  local governing authority within 90 days after he or she has 
539  issued the letter of certification under subsection (4) (3). 
540         (b) Compliance with the terms and conditions of the 
541  agreement is a condition precedent for the receipt of a tax 
542  refund each year. The failure to comply with the terms and 
543  conditions of the tax refund agreement results in the loss of 
544  eligibility for receipt of all tax refunds previously authorized 
545  under this section and the revocation by the director of the 
546  certification of the business entity as a qualified target 
547  industry business, unless the business is eligible to receive 
548  and elects to accept a prorated refund under paragraph (6)(e) 
549  (5)(d) or the office grants the business an economic recovery 
550  extension economic-stimulus exemption. 
551         1. A qualified target industry business may submit, in 
552  writing, a request to the office for an economic recovery 
553  extension economic-stimulus exemption. The request must provide 
554  quantitative evidence demonstrating how negative economic 
555  conditions in the business’s industry, the effects of the impact 
556  of a named hurricane or tropical storm, or specific acts of 
557  terrorism affecting the qualified target industry business have 
558  prevented the business from complying with the terms and 
559  conditions of its tax refund agreement. 
560         2. Upon receipt of a request under subparagraph 1., the 
561  director has shall have 45 days to notify the requesting 
562  business, in writing, if its extension exemption has been 
563  granted or denied. In determining if an extension exemption 
564  should be granted, the director shall consider the extent to 
565  which negative economic conditions in the requesting business’s 
566  industry have occurred in the state or the effects of the impact 
567  of a named hurricane or tropical storm or specific acts of 
568  terrorism affecting the qualified target industry business have 
569  prevented the business from complying with the terms and 
570  conditions of its tax refund agreement. The office shall 
571  consider current employment statistics for this state by 
572  industry, including whether the business’s industry had 
573  substantial job loss during the prior year, when determining 
574  whether an extension exemption shall be granted. 
575         3. As a condition for receiving a prorated refund under 
576  paragraph (6)(e) (5)(d) or an economic recovery extension 
577  economic-stimulus exemption under this paragraph, a qualified 
578  target industry business must agree to renegotiate its tax 
579  refund agreement with the office to, at a minimum, ensure that 
580  the terms of the agreement comply with current law and office 
581  procedures governing application for and award of tax refunds. 
582  Upon approving the award of a prorated refund or granting an 
583  economic recovery extension economic-stimulus exemption, the 
584  office shall renegotiate the tax refund agreement with the 
585  business as required by this subparagraph. When amending the 
586  agreement of a business receiving an economic recovery extension 
587  economic-stimulus exemption, the office may extend the duration 
588  of the agreement for a period not to exceed 2 years. 
589         4. A qualified target industry business may submit a 
590  request for an economic recovery extension economic-stimulus 
591  exemption to the office in lieu of any tax refund claim 
592  scheduled to be submitted after January 1, 2009, but before July 
593  1, 2012 2011. 
594         5. A qualified target industry business that receives an 
595  economic recovery extension economic-stimulus exemption may not 
596  receive a tax refund for the period covered by the exemption. 
597         (c) The agreement must be signed by the director and by an 
598  authorized officer of the qualified target industry business 
599  within 120 days after the issuance of the letter of 
600  certification under subsection (4) (3), but not before passage 
601  and receipt of the resolution of local financial support. The 
602  office may grant an extension of this period at the written 
603  request of the qualified target industry business. 
604         (d) The agreement must contain the following legend, 
605  clearly printed on its face in bold type of not less than 10 
606  points in size: “This agreement is neither a general obligation 
607  of the State of Florida, nor is it backed by the full faith and 
608  credit of the State of Florida. Payment of tax refunds is are 
609  conditioned on and subject to specific annual appropriations by 
610  the Florida Legislature of moneys sufficient to pay amounts 
611  authorized in section 288.106, Florida Statutes.” 
612         (6)(5) ANNUAL CLAIM FOR REFUND.— 
613         (a) To be eligible to claim any scheduled tax refund, a 
614  qualified target industry business that has entered into a tax 
615  refund agreement with the office under subsection (5) (4) must 
616  apply by January 31 of each fiscal year to the office for the 
617  tax refund scheduled to be paid from the appropriation for the 
618  fiscal year that begins on July 1 following the January 31 
619  claims-submission date. The office may, upon written request, 
620  grant a 30-day extension of the filing date. 
621         (b) The claim for refund by the qualified target industry 
622  business must include a copy of all receipts pertaining to the 
623  payment of taxes for which the refund is sought and data related 
624  to achievement of each performance item specified in the tax 
625  refund agreement. The amount requested as a tax refund may not 
626  exceed the amount specified for the relevant fiscal year in that 
627  agreement. 
628         (c) If the qualified target industry business provides the 
629  office with proof that in a single year it has paid an amount of 
630  state taxes, from the categories in paragraph (3)(d), which is 
631  at least equal to the total amount of tax refunds it may receive 
632  through successful completion of its qualified target industry 
633  agreement, the office may waive the requirement for proof of 
634  taxes paid in future years. 
635         (d)(c) A tax refund may not be approved for a qualified 
636  target industry business unless the required local financial 
637  support has been paid into the account for that refund. If the 
638  local financial support provided is less than 20 percent of the 
639  approved tax refund, the tax refund must be reduced. In no event 
640  may the tax refund exceed an amount that is equal to 5 times the 
641  amount of the local financial support received. Further, funding 
642  from local sources includes any tax abatement granted to that 
643  business under s. 196.1995 or the appraised market value of 
644  municipal or county land conveyed or provided at a discount to 
645  that business. The amount of any tax refund for such business 
646  approved under this section must be reduced by the amount of any 
647  such tax abatement granted or the value of the land granted; and 
648  the limitations in subsection (3) (2) and paragraph (4)(e) 
649  (3)(e) must be reduced by the amount of any such tax abatement 
650  or the value of the land granted. A report listing all sources 
651  of the local financial support shall be provided to the office 
652  when such support is paid to the account. 
653         (e)(d) A prorated tax refund, less a 5 percent 5-percent 
654  penalty, shall be approved for a qualified target industry 
655  business if provided all other applicable requirements have been 
656  satisfied and the business proves to the satisfaction of the 
657  director that: 
658         1. It has achieved at least 80 percent of its projected 
659  employment; and that 
660         2. The average wage paid by the business is at least 90 
661  percent of the average wage specified in the tax refund 
662  agreement, but in no case less than 115 percent of the average 
663  private sector wage in the area available at the time of 
664  certification, or 150 percent or 200 percent of the average 
665  private sector wage if the business requested the additional 
666  per-job tax refund authorized in paragraph (3)(b) (2)(b) for 
667  wages above those levels. 
668 
669  The prorated tax refund shall be calculated by multiplying the 
670  tax refund amount for which the qualified target industry 
671  business would have been eligible, if all applicable 
672  requirements had been satisfied, by the percentage of the 
673  average employment specified in the tax refund agreement which 
674  was achieved, and by the percentage of the average wages 
675  specified in the tax refund agreement which was achieved. 
676         (f)(e) The director, with such assistance as may be 
677  required from the office, the Department of Revenue, or the 
678  Agency for Workforce Innovation, shall, by June 30 following the 
679  scheduled date for submission of the tax refund claim, specify 
680  by written order the approval or disapproval of the tax refund 
681  claim and, if approved, the amount of the tax refund that is 
682  authorized to be paid to the qualified target industry business 
683  for the annual tax refund. The office may grant an extension of 
684  this date on the request of the qualified target industry 
685  business for the purpose of filing additional information in 
686  support of the claim. 
687         (g)(f) The total amount of tax refund claims approved by 
688  the director under this section in any fiscal year must not 
689  exceed the amount authorized under s. 288.095(3). 
690         (h)(g) This section does not create a presumption that a 
691  tax refund claim will be approved and paid. 
692         (i)(h) Upon approval of the tax refund under paragraphs 
693  (c), (d), and (e), and (f), the Chief Financial Officer shall 
694  issue a warrant for the amount specified in the written order. 
695  If the written order is appealed, the Chief Financial Officer 
696  may not issue a warrant for a refund to the qualified target 
697  industry business until the conclusion of all appeals of that 
698  order. 
699         (7)(6) ADMINISTRATION.— 
700         (a) The office may is authorized to verify information 
701  provided in any claim submitted for tax credits under this 
702  section with regard to employment and wage levels or the payment 
703  of the taxes to the appropriate agency or authority, including 
704  the Department of Revenue, the Agency for Workforce Innovation, 
705  or any local government or authority. 
706         (b) To facilitate the process of monitoring and auditing 
707  applications made under this program, the office may provide a 
708  list of qualified target industry businesses to the Department 
709  of Revenue, to the Agency for Workforce Innovation, or to any 
710  local government or authority. The office may request the 
711  assistance of those entities with respect to monitoring jobs, 
712  wages, and the payment of the taxes listed in subsection (3) 
713  (2). 
714         (c) Funds specifically appropriated for the tax refund 
715  program for qualified target industry businesses may not be used 
716  by the office for any purpose other than the payment of tax 
717  refunds authorized by this section. 
718         (d) For all agreements signed after January 1, 2006, the 
719  office shall conduct a review of each qualified target industry 
720  business within 12 months after such business has submitted its 
721  final incentive refund request in order to evaluate whether the 
722  business is continuing to contribute to the regional or state 
723  economy. To complete the review, the office shall examine the 
724  size of each business’s workforce, the annual average wage of 
725  its employees, whether the business has made additional 
726  investments in its operations since the completion of its 
727  agreement, and whether the business has expanded into additional 
728  locations. The office shall submit a report of its findings and 
729  recommendations from its review to the Governor, the President 
730  of the Senate, and the Speaker of the House of Representatives. 
731  The first report shall be submitted by December 1, 2011, and 
732  each December 1 thereafter. 
733         (7) Notwithstanding paragraphs (4)(a) and (5)(c), the 
734  office may approve a waiver of the local financial support 
735  requirement for a business located in any of the following 
736  counties in which businesses received emergency loans 
737  administered by the office in response to the named hurricanes 
738  of 2004: Bay, Brevard, Charlotte, DeSoto, Escambia, Flagler, 
739  Glades, Hardee, Hendry, Highlands, Indian River, Lake, Lee, 
740  Martin, Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Polk, 
741  Putnam, Santa Rosa, Seminole, St. Lucie, Volusia, and Walton. A 
742  waiver may be granted only if the office determines that the 
743  local financial support cannot be provided or that doing so 
744  would effect a demonstrable hardship on the unit of local 
745  government providing the local financial support. If the office 
746  grants a waiver of the local financial support requirement, the 
747  state shall pay 100 percent of the refund due to an eligible 
748  business. The waiver shall apply for tax refund applications 
749  made for fiscal years 2004-2005, 2005-2006, and 2006-2007. 
750         (8) EXPIRATION.—An applicant may not be certified as 
751  qualified under this section after June 30, 2015 2010. A tax 
752  refund agreement existing on that date shall continue in effect 
753  in accordance with its terms. 
754         Section 2. Paragraph (e) of subsection (1), subsection (2), 
755  paragraphs (a) and (d) of subsection (4), and paragraph (b) of 
756  subsection (5) of section 288.107, Florida Statutes, are amended 
757  to read: 
758         288.107 Brownfield redevelopment bonus refunds.— 
759         (1) DEFINITIONS.—As used in this section: 
760         (e) “Eligible business” means: 
761         1. A qualified target industry business as defined in s. 
762  288.106(2) s. 288.106(1)(o); or 
763         2. A business that can demonstrate a fixed capital 
764  investment of at least $2 million in mixed-use business 
765  activities, including multiunit housing, commercial, retail, and 
766  industrial in brownfield areas, or at least $500,000 in 
767  brownfield areas that do not require site cleanup, and which 
768  provides benefits to its employees. 
769         (2) BROWNFIELD REDEVELOPMENT BONUS REFUND.—Bonus refunds 
770  shall be approved by the office as specified in the final order 
771  issued by the director and allowed from the account as follows: 
772         (a) A bonus refund of $2,500 shall be allowed to any 
773  qualified target industry business as defined by s. 288.106 for 
774  each new Florida job created in a brownfield area which is 
775  claimed on the qualified target industry business’s annual 
776  refund claim authorized in s. 288.106(6) s. 288.106(5). 
777         (b) A bonus refund of up to $2,500 shall be allowed to any 
778  other eligible business as defined in subparagraph (1)(e)2. for 
779  each new Florida job created in a brownfield which is claimed 
780  under an annual claim procedure similar to the annual refund 
781  claim authorized in s. 288.106(6) s. 288.106(5). The amount of 
782  the refund shall be equal to 20 percent of the average annual 
783  wage for the jobs created. 
784         (4) PAYMENT OF BROWNFIELD REDEVELOPMENT BONUS REFUNDS.— 
785         (a) To be eligible to receive a bonus refund for new 
786  Florida jobs created in a brownfield, a business must have been 
787  certified as a qualified target industry business under s. 
788  288.106 or eligible business as defined in paragraph (1)(e) and 
789  must have indicated on the qualified target industry tax refund 
790  application form submitted in accordance with s. 288.106(4) s. 
791  288.106(3) or other similar agreement for other eligible 
792  business as defined in paragraph (1)(e) that the project for 
793  which the application is submitted is or will be located in a 
794  brownfield and that the business is applying for certification 
795  as a qualified brownfield business under this section, and must 
796  have signed a qualified target industry tax refund agreement 
797  with the office which indicates that the business has been 
798  certified as a qualified target industry business located in a 
799  brownfield and specifies the schedule of brownfield 
800  redevelopment bonus refunds that the business may be eligible to 
801  receive in each fiscal year. 
802         (d) After entering into a tax refund agreement as provided 
803  in s. 288.106 or other similar agreement for other eligible 
804  businesses as defined in paragraph (1)(e), an eligible business 
805  may receive brownfield redevelopment bonus refunds from the 
806  account pursuant to s. 288.106(3)(d) s. 288.106(2)(c). 
807         (5) ADMINISTRATION.— 
808         (b) To facilitate the process of monitoring and auditing 
809  applications made under this program, the office may provide a 
810  list of qualified target industry businesses to the Department 
811  of Revenue, to the Agency for Workforce Innovation, to the 
812  Department of Environmental Protection, or to any local 
813  government authority. The office may request the assistance of 
814  those entities with respect to monitoring the payment of the 
815  taxes listed in s. 288.106(3) s. 288.106(2). 
816         Section 3. Section 290.00677, Florida Statutes, is amended 
817  to read: 
818         290.00677 Rural enterprise zones; special qualifications.— 
819         (1) Notwithstanding the enterprise zone residency 
820  requirements set out in s. 212.096(1)(c), eligible businesses as 
821  defined by s. 212.096(1)(a), located in rural enterprise zones 
822  as defined by s. 290.004, may receive the basic minimum credit 
823  provided under s. 212.096 for creating a new job and hiring a 
824  person residing within the jurisdiction of a rural community 
825  county, as defined by s. 288.106(2) s. 288.106(1)(r). All other 
826  provisions of s. 212.096, including, but not limited to, those 
827  relating to the award of enhanced credits, apply to such 
828  businesses. 
829         (2) Notwithstanding the enterprise zone residency 
830  requirements set out in s. 220.03(1)(q), businesses as defined 
831  by s. 220.03(1)(c), located in rural enterprise zones as defined 
832  in s. 290.004, may receive the basic minimum credit provided 
833  under s. 220.181 for creating a new job and hiring a person 
834  residing within the jurisdiction of a rural community county, as 
835  defined by s. 288.106(2) s. 288.106(1)(r). All other provisions 
836  of s. 220.181, including, but not limited to, those relating to 
837  the award of enhanced credits apply to such businesses. 
838         Section 4. This act shall take effect July 1, 2010.