Bill Text: FL S1856 | 2010 | Regular Session | Comm Sub

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

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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-Comm_Sub.html

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Florida Senate - 2010                             CS for SB 1856 
 
By the Committees on Commerce; and Commerce 
577-03096-10                                          20101856c1 
1                        A bill to be entitled 
2         An act relating to the 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; establishing a schedule for 
8         the Office of Tourism, Trade, and Economic Development 
9         to review and revise the list of target industries and 
10         submit a report to the Governor and Legislature; 
11         revising the criteria for the Office of Tourism, 
12         Trade, and Economic Development and Enterprise 
13         Florida, Inc., to use in identifying target industry 
14         businesses; conforming cross-references to changes 
15         made by the act; requiring an application for 
16         certification as a qualified target industry business 
17         to include an estimate of the proportion of the 
18         machinery, equipment, and other resources that will be 
19         used in the applicant’s proposed operation in Florida 
20         and purchased by the applicant outside the state; 
21         requiring the Office of Tourism, Trade, and Economic 
22         Development to consider the state’s return on 
23         investment in evaluating applicants for the tax refund 
24         program; requiring the Office of Economic and 
25         Demographic Research to submit reports to the 
26         Legislature evaluating the calculation of the state’s 
27         return on investment for the program; requiring that 
28         additional provisions be included in tax refund 
29         agreements; redesignating the economic-stimulus 
30         exemption as the “economic recovery extension”; 
31         extending the date by which a qualified target 
32         industry business may request an economic recovery 
33         extension; authorizing the Office of Tourism, Trade, 
34         and Economic Development to waive the requirement for 
35         a business to annually provide proof of taxes paid if 
36         the business provides proof that it has paid certain 
37         taxes in amounts at least equal to the total amount of 
38         refunds for which the business is eligible; requiring 
39         the Office of Tourism, Trade, and Economic Development 
40         to conduct a review of certain qualified target 
41         industry businesses that have failed to complete their 
42         tax refund agreements and submit a report of its 
43         findings and recommendations to the Governor, the 
44         President of the Senate, and the Speaker of the House 
45         of Representatives; extending the date by which 
46         businesses may apply to participate in the tax refund 
47         program for qualified target industry businesses; 
48         amending ss. 288.107 and 290.00677, F.S.; conforming 
49         cross-references to changes made by the act; providing 
50         an effective date. 
51 
52  Be It Enacted by the Legislature of the State of Florida: 
53 
54         Section 1. Section 288.106, Florida Statutes, is amended, 
55  and subsection (2) of that section is reordered, to read: 
56         288.106 Tax refund program for qualified target industry 
57  businesses.— 
58         (1) LEGISLATIVE FINDINGS AND DECLARATIONS.—The Legislature 
59  finds that retaining and expanding existing businesses in 
60  Florida, encouraging the creation of new businesses in Florida, 
61  attracting new businesses from out of state, and generally 
62  providing conditions favorable for the growth of target 
63  industries creates high-quality, high-wage employment 
64  opportunities for the residents of this state and strengthens 
65  Florida’s economic foundation. The Legislature also finds that 
66  incentives that are narrowly focused in application and scope 
67  tend to be more effective at achieving the state’s economic 
68  development goals. Further, the Legislature finds that higher 
69  wage jobs reduce the state’s share of hidden costs such as 
70  public assistance and subsidized health care associated with 
71  low-wage jobs. Therefore, the Legislature declares that it is 
72  the policy of this state to encourage the growth of higher-wage 
73  jobs and a diverse economic base by providing state tax refunds 
74  to qualified target industry businesses that originate or expand 
75  in this state or that relocate to this state. 
76         (2)(1) DEFINITIONS.—As used in this section: 
77         (a) “Account” means the Economic Development Incentives 
78  Account within the Economic Development Trust Fund established 
79  under s. 288.095. 
80         (c)(b) “Average private sector wage in the area” means the 
81  statewide private sector average wage or the average of all 
82  private sector wages and salaries in the county or in the 
83  standard metropolitan area in which the business is located. 
84         (d)(c) “Business” means an employing unit, as defined in s. 
85  443.036, which is registered for unemployment compensation 
86  purposes with the state agency providing unemployment tax 
87  collection services under contract with the Agency for Workforce 
88  Innovation through an interagency agreement pursuant to s. 
89  443.1316, or a subcategory or division of an employing unit 
90  which is accepted by the state agency providing unemployment tax 
91  collection services as a reporting unit. 
92         (e)(d) “Corporate headquarters business” means an 
93  international, national, or regional headquarters office of a 
94  multinational or multistate business enterprise or national 
95  trade association, whether separate from or connected with other 
96  facilities used by such business. 
97         (n)(e) “Office” means the Office of Tourism, Trade, and 
98  Economic Development. 
99         (g)(f) “Enterprise zone” means an area designated as an 
100  enterprise zone pursuant to s. 290.0065. 
101         (h)(g) “Expansion of an existing business” means the 
102  expansion of an existing Florida business by or through 
103  additions to real and personal property, resulting in a net 
104  increase in employment of not less than 10 percent at such 
105  business. 
106         (i)(h) “Fiscal year” means the fiscal year of the state. 
107         (j)(i) “Jobs” means full-time equivalent positions, 
108  including, not limited to, positions obtained from a temporary 
109  employment agency or employee leasing company or through a union 
110  agreement or co-employment under a professional employer 
111  organization agreement, which result as that term is consistent 
112  with terms used by the Agency for Workforce Innovation and the 
113  United States Department of Labor for purposes of unemployment 
114  compensation tax administration and employment estimation, 
115  resulting directly from a project in this state. The term does 
116  not include temporary construction jobs involved with the 
117  construction of facilities for the project or any jobs 
118  previously included in any application for tax refunds under s. 
119  288.1045 or this section. 
120         (k)(j) “Local financial support” means funding from local 
121  sources, public or private, which is paid to the Economic 
122  Development Trust Fund and which is equal to 20 percent of the 
123  annual tax refund for a qualified target industry business. A 
124  qualified target industry business may not provide, directly or 
125  indirectly, more than 5 percent of such funding in any fiscal 
126  year. The sources of such funding may not include, directly or 
127  indirectly, state funds appropriated from the General Revenue 
128  Fund or any state trust fund, excluding tax revenues shared with 
129  local governments pursuant to law. 
130         (l)(k) “Local financial support exemption option” means the 
131  option to exercise an exemption from the local financial support 
132  requirement available to any applicant whose project is located 
133  in a brownfield area or a rural community county with a 
134  population of 75,000 or fewer or a county with a population of 
135  125,000 or fewer which is contiguous to a county with a 
136  population of 75,000 or fewer. Any applicant that exercises this 
137  option is shall not be eligible for more than 80 percent of the 
138  total tax refunds allowed such applicant under this section. 
139         (m)(l) “New business” means a business that applies for the 
140  qualified target industry refund program before beginning 
141  operations which heretofore did not exist in this state, first 
142  beginning operations on a site located in this state and is a 
143  clearly separate legal entity from any other commercial or 
144  industrial operations owned by the same business. 
145         (o)(m) “Project” means the creation of a new business or 
146  expansion of an existing business. 
147         (f)(n) “Director” means the Director of the Office of 
148  Tourism, Trade, and Economic Development. 
149         (t)(o) “Target industry business” means a corporate 
150  headquarters business or any business that is engaged in one of 
151  the target industries identified pursuant to the following 
152  criteria developed by the office in consultation with Enterprise 
153  Florida, Inc.: 
154         1. Future growth.—Industry forecasts should indicate strong 
155  expectation for future growth in both employment and output, 
156  according to the most recent available data. Preference Special 
157  consideration should be given to businesses that export goods or 
158  services Florida’s growing access to international markets or to 
159  businesses that replace domestic and international replacing 
160  imports of goods or services. 
161         2. Stability.—The industry should not be subject to 
162  periodic layoffs, whether due to seasonality or sensitivity to 
163  volatile economic variables such as weather. The industry should 
164  also be relatively resistant to recession, so that the demand 
165  for products of this industry is not typically necessarily 
166  subject to decline during an economic downturn. 
167         3. High wage.—The industry should pay relatively high wages 
168  compared to statewide or area averages. 
169         4. Market and resource independent.—The location of 
170  industry businesses should not be dependent on Florida markets 
171  or resources as indicated by industry analysis, with the 
172  exception of businesses in the renewable-energy industry. 
173  Special consideration should be given to the development of 
174  strong industrial clusters which include defense and homeland 
175  security businesses. 
176         5. Industrial base diversification and strengthening.—The 
177  industry should contribute toward expanding or diversifying the 
178  state’s or area’s economic base, as indicated by analysis of 
179  employment and output shares compared to national and regional 
180  trends. Preference Special consideration should be given to 
181  industries that strengthen regional economies by adding value to 
182  basic products or building regional industrial clusters as 
183  indicated by industry analysis. Additionally, preference should 
184  be given to the development of strong industrial clusters that 
185  include defense and homeland security businesses. 
186         6. Economic benefits.—The industry is expected to should 
187  have strong positive impacts on or benefits to the state or and 
188  regional economies. 
189 
190  The term does office, in consultation with Enterprise Florida, 
191  Inc., shall develop a list of such target industries annually 
192  and submit such list as part of the final agency legislative 
193  budget request submitted pursuant to s. 216.023(1). A target 
194  industry business may not include any business industry engaged 
195  in retail industry activities; any electrical utility company; 
196  any phosphate or other solid minerals severance, mining, or 
197  processing operation; any oil or gas exploration or production 
198  operation; or any business firm subject to regulation by the 
199  Division of Hotels and Restaurants of the Department of Business 
200  and Professional Regulation. By January 1 of every third year, 
201  beginning January 1, 2011, the office, in consultation with 
202  Enterprise Florida, Inc., economic development organizations, 
203  the State University System, local governments, employee and 
204  employer organizations, market analysts, and economists, shall 
205  review and, as appropriate, revise the list of such target 
206  industries and submit the list to the Governor, the President of 
207  the Senate, and the Speaker of the House of Representatives. 
208         (u)(p) “Taxable year” means taxable year as defined in s. 
209  220.03(1)(y). 
210         (p)(q) “Qualified target industry business” means a target 
211  industry business that has been approved by the director to be 
212  eligible for tax refunds pursuant to this section. 
213         (q) “Return on investment” means the gain in state revenues 
214  as a percentage of the state’s investment. The state’s 
215  investment includes state grants, tax exemptions, tax refunds, 
216  tax credits, and other state incentives. Return on investment is 
217  expressed mathematically as follows: 
218 
219      Return on investment = (gain in state revenues - state’s 
220                   investment)/state’s investment 
221 
222         (r) “Rural county” means a county with a population of 
223  75,000 or fewer or a county with a population of 100,000 or 
224  fewer which is contiguous to a county with a population of 
225  75,000 or fewer. 
226         (r)(s) “Rural city” means a city having with a population 
227  of 10,000 or fewer less, or a city having with a population of 
228  greater than 10,000 but fewer less than 20,000 which has been 
229  determined by the office of Tourism, Trade, and Economic 
230  Development to have economic characteristics such as, but not 
231  limited to, a significant percentage of residents on public 
232  assistance, a significant percentage of residents with income 
233  below the poverty level, or a significant percentage of the 
234  city’s employment base in agriculture-related industries. 
235         (s)(t) “Rural community” means: 
236         1. A county having with a population of 75,000 or fewer. 
237         2. A county having with a population of 125,000 or fewer 
238  which is contiguous to a county having with a population of 
239  75,000 or fewer. 
240         3. A municipality within a county described in subparagraph 
241  1. or subparagraph 2. 
242 
243  For purposes of this paragraph, population shall be determined 
244  in accordance with the most recent official estimate pursuant to 
245  s. 186.901. 
246         (b)(u) “Authorized local economic development agency” means 
247  a any public or private entity, including those defined in s. 
248  288.075, authorized by a county or municipality to promote the 
249  general business or industrial interests of that county or 
250  municipality. 
251         (3)(2) TAX REFUND; ELIGIBLE AMOUNTS.— 
252         (a) There shall be allowed, from the account, a refund to a 
253  qualified target industry business for the amount of eligible 
254  taxes certified by the director which were paid by the such 
255  business. The total amount of refunds for all fiscal years for 
256  each qualified target industry business must be determined 
257  pursuant to subsection (4) (3). The annual amount of a refund to 
258  a qualified target industry business must be determined pursuant 
259  to subsection (6) (5). 
260         (b)1. Upon approval by the director, a qualified target 
261  industry business shall be allowed tax refund payments equal to 
262  $3,000 times the number of jobs specified in the tax refund 
263  agreement under subparagraph (5)(a)1. (4)(a)1., or equal to 
264  $6,000 times the number of jobs if the project is located in a 
265  rural county or an enterprise zone. 
266         2. Further, A qualified target industry business shall be 
267  allowed additional tax refund payments equal to $1,000 times the 
268  number of jobs specified in the tax refund agreement under 
269  subparagraph (5)(a)1. (4)(a)1., if such jobs pay an annual 
270  average wage of at least 150 percent of the average area private 
271  sector wage in the area, or equal to $2,000 times the number of 
272  jobs if such jobs pay an annual average area wage of at least 
273  200 percent of the average area private sector wage in the area. 
274         (c) A qualified target industry business may not receive 
275  refund payments of more than 25 percent of the total tax refunds 
276  specified in the tax refund agreement under subparagraph 
277  (5)(a)1. (4)(a)1. in any fiscal year. Further, a qualified 
278  target industry business may not receive more than $1.5 million 
279  in refunds under this section in any single fiscal year, or more 
280  than $2.5 million in any single fiscal year if the project is 
281  located in an enterprise zone. A qualified target industry 
282  business may not receive more than $5 million in refund payments 
283  under this section in all fiscal years, or more than $7.5 
284  million if the project is located in an enterprise zone.Funds 
285  made available pursuant to this section may not be expended in 
286  connection with the relocation of a business from one community 
287  to another community in this state unless the Office of Tourism, 
288  Trade, and Economic Development determines that without such 
289  relocation the business will move outside this state or 
290  determines that the business has a compelling economic rationale 
291  for the relocation and that the relocation will create 
292  additional jobs. 
293         (d)(c) After entering into a tax refund agreement under 
294  subsection (5) (4), a qualified target industry business may: 
295         1. Receive refunds from the account for the following taxes 
296  due and paid by that business beginning with the first taxable 
297  year of the business which begins after entering into the 
298  agreement: 
299         a. Corporate income taxes under chapter 220. 
300         b. Insurance premium tax under s. 624.509. 
301         2. Receive refunds from the account for the following taxes 
302  due and paid by that business after entering into the agreement: 
303         a. Taxes on sales, use, and other transactions under 
304  chapter 212. 
305         b. Intangible personal property taxes under chapter 199. 
306         c. Emergency excise taxes under chapter 221. 
307         d. Excise taxes on documents under chapter 201. 
308         e. Ad valorem taxes paid, as defined in s. 220.03(1). 
309         f. State communications services taxes administered under 
310  chapter 202. This provision does not apply to the gross receipts 
311  tax imposed under chapter 203 and administered under chapter 202 
312  or the local communications services tax authorized under s. 
313  202.19. 
314 
315  The addition of state communications services taxes administered 
316  under chapter 202 is remedial in nature and retroactive to 
317  October 1, 2001. The office may make supplemental tax refund 
318  payments to allow for tax refunds for communications services 
319  taxes paid by an eligible qualified target industry business 
320  after October 1, 2001. 
321         (e)(d) However, a qualified target industry business may 
322  not receive a refund under this section for any amount of 
323  credit, refund, or exemption granted to that business for any of 
324  the such taxes listed in paragraph (d). If a refund for such 
325  taxes is provided by the office, which taxes are subsequently 
326  adjusted by the application of any credit, refund, or exemption 
327  granted to the qualified target industry business other than as 
328  provided in this section, the business shall reimburse the 
329  account for the amount of that credit, refund, or exemption. A 
330  qualified target industry business shall notify and tender 
331  payment to the office within 20 days after receiving any credit, 
332  refund, or exemption other than one provided in this section. 
333         (f) Refunds made available pursuant to this section may not 
334  be expended in connection with the relocation of a business from 
335  one community to another community in this state unless the 
336  office determines that without such relocation the business will 
337  move outside this state, or determines that the business has a 
338  compelling economic rationale for the relocation and that the 
339  relocation will create additional jobs. 
340         (g)(e) A qualified target industry business that 
341  fraudulently claims a refund under this section: 
342         1. Is liable for repayment of the amount of the refund to 
343  the account, plus a mandatory penalty in the amount of 200 
344  percent of the tax refund which shall be deposited into the 
345  General Revenue Fund. 
346         2. Commits Is guilty of a felony of the third degree, 
347  punishable as provided in s. 775.082, s. 775.083, or s. 775.084. 
348         (4)(3) APPLICATION AND APPROVAL PROCESS.— 
349         (a) To apply for certification as a qualified target 
350  industry business under this section, the business must file an 
351  application with the office before the business decides has made 
352  the decision to locate a new business in this state or before 
353  the business decides had made the decision to expand its an 
354  existing operations business in this state. The application must 
355  shall include, but need is not be limited to, the following 
356  information: 
357         1. The applicant’s federal employer identification number 
358  and, if applicable, the applicant’s state sales tax registration 
359  number. 
360         2. The proposed permanent location of the applicant’s 
361  facility in this state at which the project is or is to be 
362  located. 
363         3. A description of the type of business activity or 
364  product covered by the project, including a minimum of a five 
365  digit NAICS code for all activities included in the project. As 
366  used in this paragraph, “NAICS” means those classifications 
367  contained in the North American Industry Classification System, 
368  as published in 2007 by the Office of Management and Budget, 
369  Executive Office of the President, and updated periodically. 
370         4. The proposed number of net new full-time equivalent 
371  Florida jobs at the qualified target industry business as of 
372  December 31 of each year included in the project and the average 
373  wage of those jobs. If more than one type of business activity 
374  or product is included in the project, the number of jobs and 
375  average wage for those jobs must be separately stated for each 
376  type of business activity or product. 
377         5. The total number of full-time equivalent employees 
378  employed by the applicant in this state, if applicable. 
379         6. The anticipated commencement date of the project. 
380         7. A brief statement explaining concerning the role that 
381  the estimated tax refunds to be requested will play in the 
382  decision of the applicant to locate or expand in this state. 
383         8. An estimate of the proportion of the sales resulting 
384  from the project that will be made outside this state. 
385         9. An estimate of the proportion of the cost of the 
386  machinery and equipment, and any other resources necessary in 
387  the development of its product or service, which is to be used 
388  by the business in its Florida operations and which will be 
389  purchased outside this state. 
390         10.9. A resolution adopted by the governing board of the 
391  county or municipality in which the project will be located, 
392  which resolution recommends that the project certain types of 
393  businesses be approved as a qualified target industry business 
394  and specifies states that the commitments of local financial 
395  support necessary for the target industry business exist. In 
396  advance of the passage of such resolution, the office may also 
397  accept an official letter from an authorized local economic 
398  development agency that endorses the proposed target industry 
399  project and pledges that sources of local financial support for 
400  such project exist. For the purposes of making pledges of local 
401  financial support under this subsection, the authorized local 
402  economic development agency shall be officially designated by 
403  the passage of a one-time resolution by the local governing 
404  authority. 
405         11.10. Any additional information requested by the office. 
406         (b) To qualify for review by the office, the application of 
407  a target industry business must, at a minimum, establish the 
408  following to the satisfaction of the office: 
409         1.a. The jobs proposed to be created provided under the 
410  application, pursuant to subparagraph (a)4., must pay an 
411  estimated annual average wage equaling at least 115 percent of 
412  the average private sector wage in the area where the business 
413  is to be located or the statewide private sector average wage. 
414  In determining the average annual wage, the office shall include 
415  only new proposed jobs, and wages for existing jobs shall be 
416  excluded from this calculation. 
417         b. The office may waive the average wage requirement at the 
418  request of the local governing body recommending the project and 
419  Enterprise Florida, Inc. The director may waive the wage 
420  requirement may only be waived for a project located in a 
421  brownfield area designated under s. 376.80 or in a rural city, 
422  rural community, or county, or in an enterprise zone and only if 
423  when the merits of the individual project or the specific 
424  circumstances in the community in relationship to the project 
425  warrant such action. If the local governing body and Enterprise 
426  Florida, Inc., make such a recommendation, it must be 
427  transmitted in writing and the specific justification for the 
428  waiver recommendation must be explained. If the director elects 
429  to waive the wage requirement, the waiver must be stated in 
430  writing and the reasons for granting the waiver must be 
431  explained. 
432         2. The target industry business’s project must result in 
433  the creation of at least 10 jobs at the such project and, if an 
434  expansion of an existing business, must result in an a net 
435  increase in employment of at least 10 percent at the business. 
436  Notwithstanding the definition of the term “expansion of an 
437  existing business” in paragraph (1)(g), At the request of the 
438  local governing body recommending the project and Enterprise 
439  Florida, Inc., the office may waive this requirement for a 
440  business in a rural community or enterprise zone define an 
441  “expansion of an existing business” in a rural community or an 
442  enterprise zone as the expansion of a business resulting in a 
443  net increase in employment of less than 10 percent at such 
444  business if the merits of the individual project or the specific 
445  circumstances in the community in relationship to the project 
446  warrant such action. If the local governing body and Enterprise 
447  Florida, Inc., make such a request, the request must be 
448  transmitted in writing and the specific justification for the 
449  request must be explained. If the director elects to grant the 
450  request, the grant must be stated in writing and the reason for 
451  granting the request must be explained. 
452         3. The business activity or product for the applicant’s 
453  project is within an industry or industries that have been 
454  identified by the office as a target industry business to be 
455  high-value-added industries that contributes contribute to the 
456  area and to the economic growth of the state and the region in 
457  which it is located, that produces produce a higher standard of 
458  living for residents of this state in the new global economy, or 
459  that can be shown to make an equivalent contribution to the area 
460  and state’s economic progress. The director must approve 
461  requests to waive the wage requirement for brownfield areas 
462  designated under s. 376.80 unless it is demonstrated that such 
463  action is not in the public interest. 
464         (c) Each application meeting the requirements of paragraph 
465  (b) must be submitted to the office for determination of 
466  eligibility. The office shall review and evaluate each 
467  application based on, but not limited to, the following 
468  criteria: 
469         1. Expected contributions to the state economy, consistent 
470  with the state strategic economic development plan adopted by 
471  Enterprise Florida, Inc., taking into account the long-term 
472  effects of the project and of the applicant on the state 
473  economy. 
474         2. The return on investment of the proposed award of tax 
475  refunds under this section and the return on investment for 
476  state incentives proposed for the project. The Office of 
477  Economic and Demographic Research shall review and evaluate the 
478  methodology and model used to calculate the return on investment 
479  and report its findings by September 1 of every third year, 
480  beginning September 1, 2010, to the President of the Senate and 
481  the Speaker of the House of Representatives economic benefit of 
482  the jobs created by the project in this state, taking into 
483  account the cost and average wage of each job created. 
484         3. The amount of capital investment to be made by the 
485  applicant in this state. 
486         4. The local financial commitment and support for the 
487  project. 
488         5. The effect of the project on the unemployment rate in 
489  local community, taking into account the unemployment rate for 
490  the county where the project will be located. 
491         6. The effect of the award any tax refunds granted pursuant 
492  to this section on the viability of the project and the 
493  probability that the project would will be undertaken in this 
494  state if such tax refunds are granted to the applicant, taking 
495  into account the expected long-term commitment of the applicant 
496  to economic growth and employment in this state. 
497         7. The expected long-term commitment of the applicant to 
498  economic growth and employment to this state resulting from the 
499  project. 
500         8. A review of the business’s past activities in this state 
501  or other states, including whether such business has been 
502  subjected to criminal or civil fines and penalties. This 
503  subparagraph does not require the disclosure of confidential 
504  information. 
505         (d) Applications shall be reviewed and certified pursuant 
506  to s. 288.061. The office shall include in its review 
507  projections of the tax refunds the business would be eligible to 
508  receive in each fiscal year based on the creation and 
509  maintenance of the net new Florida jobs specified in 
510  subparagraph (a)4. as of December 31 of the preceding state 
511  fiscal year. If appropriate, the director shall enter into a 
512  written agreement with the qualified target industry business 
513  pursuant to subsection (5) (4). 
514         (e) The director may not certify any target industry 
515  business as a qualified target industry business if the value of 
516  tax refunds to be included in that letter of certification 
517  exceeds the available amount of authority to certify new 
518  businesses as determined in s. 288.095(3). However, if the 
519  commitments of local financial support represent less than 20 
520  percent of the eligible tax refund payments, or to otherwise 
521  preserve the viability and fiscal integrity of the program, the 
522  director may certify a qualified target industry business to 
523  receive tax refund payments of less than the allowable amounts 
524  specified in paragraph (3)(b) (2)(b). A letter of certification 
525  that approves an application must specify the maximum amount of 
526  tax refund that will be available to the qualified industry 
527  business in each fiscal year and the total amount of tax refunds 
528  that will be available to the business for all fiscal years. 
529         (f) This section does not create a presumption that an 
530  applicant shall receive any tax refunds under this section. 
531  However, the office may issue nonbinding opinion letters, upon 
532  the request of prospective applicants, as to the applicants’ 
533  eligibility and the potential amount of refunds. 
534         (5)(4) TAX REFUND AGREEMENT.— 
535         (a) Each qualified target industry business must enter into 
536  a written agreement with the office which specifies, at a 
537  minimum: 
538         1. The total number of full-time equivalent jobs in this 
539  state that will be dedicated to the project, the average wage of 
540  those jobs, the definitions that will apply for measuring the 
541  achievement of these terms during the pendency of the agreement, 
542  and a time schedule or plan for when such jobs will be in place 
543  and active in this state. 
544         2. The maximum amount of tax refunds which the qualified 
545  target industry business is eligible to receive on the project 
546  and the maximum amount of a tax refund that the qualified target 
547  industry business is eligible to receive for each fiscal year, 
548  based on the job creation and maintenance schedule specified in 
549  subparagraph 1. 
550         3. That the office may review and verify the financial and 
551  personnel records of the qualified target industry business to 
552  ascertain whether that business is in compliance with this 
553  section. 
554         4. The date by which, in each fiscal year, the qualified 
555  target industry business may file a claim under subsection (6) 
556  (5) to be considered to receive a tax refund in the following 
557  fiscal year. 
558         5. That local financial support will be annually available 
559  and will be paid to the account. The office director may not 
560  enter into a written agreement with a qualified target industry 
561  business if the local financial support resolution is not passed 
562  by the local governing body authority within 90 days after the 
563  office he or she has issued the letter of certification under 
564  subsection (4) (3). 
565         6. That the office may conduct a review of the business to 
566  evaluate whether the business is continuing to contribute to the 
567  area’s or state’s economy. 
568         7. That in the event the business does not complete the 
569  agreement, the business shall provide the office with the 
570  reasons the business was unable to complete the agreement. 
571         (b) Compliance with the terms and conditions of the 
572  agreement is a condition precedent for the receipt of a tax 
573  refund each year. The failure to comply with the terms and 
574  conditions of the tax refund agreement results in the loss of 
575  eligibility for receipt of all tax refunds previously authorized 
576  under this section and the revocation by the director of the 
577  certification of the business entity as a qualified target 
578  industry business, unless the business is eligible to receive 
579  and elects to accept a prorated refund under paragraph (6)(e) 
580  (5)(d) or the office grants the business an economic recovery 
581  extension economic-stimulus exemption. 
582         1. A qualified target industry business may submit, in 
583  writing, a request to the office for an economic recovery 
584  extension economic-stimulus exemption. The request must provide 
585  quantitative evidence demonstrating how negative economic 
586  conditions in the business’s industry, the effects of the impact 
587  of a named hurricane or tropical storm, or specific acts of 
588  terrorism affecting the qualified target industry business have 
589  prevented the business from complying with the terms and 
590  conditions of its tax refund agreement. 
591         2. Upon receipt of a request under subparagraph 1., the 
592  director has shall have 45 days to notify the requesting 
593  business, in writing, if its extension exemption has been 
594  granted or denied. In determining if an extension exemption 
595  should be granted, the director shall consider the extent to 
596  which negative economic conditions in the requesting business’s 
597  industry have occurred in the state or the effects of the impact 
598  of a named hurricane or tropical storm or specific acts of 
599  terrorism affecting the qualified target industry business have 
600  prevented the business from complying with the terms and 
601  conditions of its tax refund agreement. The office shall 
602  consider current employment statistics for this state by 
603  industry, including whether the business’s industry had 
604  substantial job loss during the prior year, when determining 
605  whether an extension exemption shall be granted. 
606         3. As a condition for receiving a prorated refund under 
607  paragraph (6)(e) (5)(d) or an economic recovery extension 
608  economic-stimulus exemption under this paragraph, a qualified 
609  target industry business must agree to renegotiate its tax 
610  refund agreement with the office to, at a minimum, ensure that 
611  the terms of the agreement comply with current law and office 
612  procedures governing application for and award of tax refunds. 
613  Upon approving the award of a prorated refund or granting an 
614  economic recovery extension economic-stimulus exemption, the 
615  office shall renegotiate the tax refund agreement with the 
616  business as required by this subparagraph. When amending the 
617  agreement of a business receiving an economic recovery extension 
618  economic-stimulus exemption, the office may extend the duration 
619  of the agreement for a period not to exceed 2 years. 
620         4. A qualified target industry business may submit a 
621  request for an economic recovery extension economic-stimulus 
622  exemption to the office in lieu of any tax refund claim 
623  scheduled to be submitted after January 1, 2009, but before July 
624  1, 2012 2011. 
625         5. A qualified target industry business that receives an 
626  economic recovery extension economic-stimulus exemption may not 
627  receive a tax refund for the period covered by the exemption. 
628         (c) The agreement must be signed by the director and by an 
629  authorized officer of the qualified target industry business 
630  within 120 days after the issuance of the letter of 
631  certification under subsection (4) (3), but not before passage 
632  and receipt of the resolution of local financial support. The 
633  office may grant an extension of this period at the written 
634  request of the qualified target industry business. 
635         (d) The agreement must contain the following legend, 
636  clearly printed on its face in bold type of not less than 10 
637  points in size: “This agreement is neither a general obligation 
638  of the State of Florida, nor is it backed by the full faith and 
639  credit of the State of Florida. Payment of tax refunds is are 
640  conditioned on and subject to specific annual appropriations by 
641  the Florida Legislature of moneys sufficient to pay amounts 
642  authorized in section 288.106, Florida Statutes.” 
643         (6)(5) ANNUAL CLAIM FOR REFUND.— 
644         (a) To be eligible to claim any scheduled tax refund, a 
645  qualified target industry business that has entered into a tax 
646  refund agreement with the office under subsection (5) (4) must 
647  apply by January 31 of each fiscal year to the office for the 
648  tax refund scheduled to be paid from the appropriation for the 
649  fiscal year that begins on July 1 following the January 31 
650  claims-submission date. The office may, upon written request, 
651  grant a 30-day extension of the filing date. 
652         (b) The claim for refund by the qualified target industry 
653  business must include a copy of all receipts pertaining to the 
654  payment of taxes for which the refund is sought and data related 
655  to achievement of each performance item specified in the tax 
656  refund agreement. The amount requested as a tax refund may not 
657  exceed the amount specified for the relevant fiscal year in that 
658  agreement. 
659         (c) If the qualified target industry business provides the 
660  office with proof that in a single year it has paid an amount of 
661  state taxes, from the categories in paragraph (3)(d), which is 
662  at least equal to the total amount of tax refunds it may receive 
663  through successful completion of its qualified target industry 
664  agreement, the office may waive the requirement for proof of 
665  taxes paid in future years. 
666         (d)(c) A tax refund may not be approved for a qualified 
667  target industry business unless the required local financial 
668  support has been paid into the account for that refund. If the 
669  local financial support provided is less than 20 percent of the 
670  approved tax refund, the tax refund must be reduced. In no event 
671  may the tax refund exceed an amount that is equal to 5 times the 
672  amount of the local financial support received. Further, funding 
673  from local sources includes any tax abatement granted to that 
674  business under s. 196.1995 or the appraised market value of 
675  municipal or county land conveyed or provided at a discount to 
676  that business. The amount of any tax refund for such business 
677  approved under this section must be reduced by the amount of any 
678  such tax abatement granted or the value of the land granted; and 
679  the limitations in subsection (3) (2) and paragraph (4)(e) 
680  (3)(e) must be reduced by the amount of any such tax abatement 
681  or the value of the land granted. A report listing all sources 
682  of the local financial support shall be provided to the office 
683  when such support is paid to the account. 
684         (e)(d) A prorated tax refund, less a 5 percent 5-percent 
685  penalty, shall be approved for a qualified target industry 
686  business if provided all other applicable requirements have been 
687  satisfied and the business proves to the satisfaction of the 
688  director that: 
689         1. It has achieved at least 80 percent of its projected 
690  employment; and that 
691         2. The average wage paid by the business is at least 90 
692  percent of the average wage specified in the tax refund 
693  agreement, but in no case less than 115 percent of the average 
694  private sector wage in the area available at the time of 
695  certification, or 150 percent or 200 percent of the average 
696  private sector wage if the business requested the additional 
697  per-job tax refund authorized in paragraph (3)(b) (2)(b) for 
698  wages above those levels. 
699 
700  The prorated tax refund shall be calculated by multiplying the 
701  tax refund amount for which the qualified target industry 
702  business would have been eligible, if all applicable 
703  requirements had been satisfied, by the percentage of the 
704  average employment specified in the tax refund agreement which 
705  was achieved, and by the percentage of the average wages 
706  specified in the tax refund agreement which was achieved. 
707         (f)(e) The director, with such assistance as may be 
708  required from the office, the Department of Revenue, or the 
709  Agency for Workforce Innovation, shall, by June 30 following the 
710  scheduled date for submission of the tax refund claim, specify 
711  by written order the approval or disapproval of the tax refund 
712  claim and, if approved, the amount of the tax refund that is 
713  authorized to be paid to the qualified target industry business 
714  for the annual tax refund. The office may grant an extension of 
715  this date on the request of the qualified target industry 
716  business for the purpose of filing additional information in 
717  support of the claim. 
718         (g)(f) The total amount of tax refund claims approved by 
719  the director under this section in any fiscal year must not 
720  exceed the amount authorized under s. 288.095(3). 
721         (h)(g) This section does not create a presumption that a 
722  tax refund claim will be approved and paid. 
723         (i)(h) Upon approval of the tax refund under paragraphs 
724  (c), (d), and (e), and (f), the Chief Financial Officer shall 
725  issue a warrant for the amount specified in the written order. 
726  If the written order is appealed, the Chief Financial Officer 
727  may not issue a warrant for a refund to the qualified target 
728  industry business until the conclusion of all appeals of that 
729  order. 
730         (7)(6) ADMINISTRATION.— 
731         (a) The office may is authorized to verify information 
732  provided in any claim submitted for tax credits under this 
733  section with regard to employment and wage levels or the payment 
734  of the taxes to the appropriate agency or authority, including 
735  the Department of Revenue, the Agency for Workforce Innovation, 
736  or any local government or authority. 
737         (b) To facilitate the process of monitoring and auditing 
738  applications made under this program, the office may provide a 
739  list of qualified target industry businesses to the Department 
740  of Revenue, to the Agency for Workforce Innovation, or to any 
741  local government or authority. The office may request the 
742  assistance of those entities with respect to monitoring jobs, 
743  wages, and the payment of the taxes listed in subsection (3) 
744  (2). 
745         (c) Funds specifically appropriated for the tax refund 
746  program for qualified target industry businesses may not be used 
747  by the office for any purpose other than the payment of tax 
748  refunds authorized by this section. 
749         (d) Beginning with tax refund agreements signed after July 
750  1, 2010, the office shall attempt to ascertain the causes for 
751  any business’s failure to complete its agreement and shall 
752  report its findings and recommendations to the Governor, the 
753  President of the Senate, and the Speaker of the House of 
754  Representatives. The report shall be submitted by December 1 of 
755  each year beginning in 2011. 
756         (7) Notwithstanding paragraphs (4)(a) and (5)(c), the 
757  office may approve a waiver of the local financial support 
758  requirement for a business located in any of the following 
759  counties in which businesses received emergency loans 
760  administered by the office in response to the named hurricanes 
761  of 2004: Bay, Brevard, Charlotte, DeSoto, Escambia, Flagler, 
762  Glades, Hardee, Hendry, Highlands, Indian River, Lake, Lee, 
763  Martin, Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Polk, 
764  Putnam, Santa Rosa, Seminole, St. Lucie, Volusia, and Walton. A 
765  waiver may be granted only if the office determines that the 
766  local financial support cannot be provided or that doing so 
767  would effect a demonstrable hardship on the unit of local 
768  government providing the local financial support. If the office 
769  grants a waiver of the local financial support requirement, the 
770  state shall pay 100 percent of the refund due to an eligible 
771  business. The waiver shall apply for tax refund applications 
772  made for fiscal years 2004-2005, 2005-2006, and 2006-2007. 
773         (8) EXPIRATION.—An applicant may not be certified as 
774  qualified under this section after June 30, 2015 2010. A tax 
775  refund agreement existing on that date shall continue in effect 
776  in accordance with its terms. 
777         Section 2. Paragraph (e) of subsection (1), subsection (2), 
778  paragraphs (a) and (d) of subsection (4), and paragraph (b) of 
779  subsection (5) of section 288.107, Florida Statutes, are amended 
780  to read: 
781         288.107 Brownfield redevelopment bonus refunds.— 
782         (1) DEFINITIONS.—As used in this section: 
783         (e) “Eligible business” means: 
784         1. A qualified target industry business as defined in s. 
785  288.106(2) s. 288.106(1)(o); or 
786         2. A business that can demonstrate a fixed capital 
787  investment of at least $2 million in mixed-use business 
788  activities, including multiunit housing, commercial, retail, and 
789  industrial in brownfield areas, or at least $500,000 in 
790  brownfield areas that do not require site cleanup, and which 
791  provides benefits to its employees. 
792         (2) BROWNFIELD REDEVELOPMENT BONUS REFUND.—Bonus refunds 
793  shall be approved by the office as specified in the final order 
794  issued by the director and allowed from the account as follows: 
795         (a) A bonus refund of $2,500 shall be allowed to any 
796  qualified target industry business as defined by s. 288.106 for 
797  each new Florida job created in a brownfield area which is 
798  claimed on the qualified target industry business’s annual 
799  refund claim authorized in s. 288.106(6) s. 288.106(5). 
800         (b) A bonus refund of up to $2,500 shall be allowed to any 
801  other eligible business as defined in subparagraph (1)(e)2. for 
802  each new Florida job created in a brownfield which is claimed 
803  under an annual claim procedure similar to the annual refund 
804  claim authorized in s. 288.106(6) s. 288.106(5). The amount of 
805  the refund shall be equal to 20 percent of the average annual 
806  wage for the jobs created. 
807         (4) PAYMENT OF BROWNFIELD REDEVELOPMENT BONUS REFUNDS.— 
808         (a) To be eligible to receive a bonus refund for new 
809  Florida jobs created in a brownfield, a business must have been 
810  certified as a qualified target industry business under s. 
811  288.106 or eligible business as defined in paragraph (1)(e) and 
812  must have indicated on the qualified target industry tax refund 
813  application form submitted in accordance with s. 288.106(4) s. 
814  288.106(3) or other similar agreement for other eligible 
815  business as defined in paragraph (1)(e) that the project for 
816  which the application is submitted is or will be located in a 
817  brownfield and that the business is applying for certification 
818  as a qualified brownfield business under this section, and must 
819  have signed a qualified target industry tax refund agreement 
820  with the office which indicates that the business has been 
821  certified as a qualified target industry business located in a 
822  brownfield and specifies the schedule of brownfield 
823  redevelopment bonus refunds that the business may be eligible to 
824  receive in each fiscal year. 
825         (d) After entering into a tax refund agreement as provided 
826  in s. 288.106 or other similar agreement for other eligible 
827  businesses as defined in paragraph (1)(e), an eligible business 
828  may receive brownfield redevelopment bonus refunds from the 
829  account pursuant to s. 288.106(3)(d) s. 288.106(2)(c). 
830         (5) ADMINISTRATION.— 
831         (b) To facilitate the process of monitoring and auditing 
832  applications made under this program, the office may provide a 
833  list of qualified target industry businesses to the Department 
834  of Revenue, to the Agency for Workforce Innovation, to the 
835  Department of Environmental Protection, or to any local 
836  government authority. The office may request the assistance of 
837  those entities with respect to monitoring the payment of the 
838  taxes listed in s. 288.106(3) s. 288.106(2). 
839         Section 3. Section 290.00677, Florida Statutes, is amended 
840  to read: 
841         290.00677 Rural enterprise zones; special qualifications.— 
842         (1) Notwithstanding the enterprise zone residency 
843  requirements set out in s. 212.096(1)(c), eligible businesses as 
844  defined by s. 212.096(1)(a), located in rural enterprise zones 
845  as defined by s. 290.004, may receive the basic minimum credit 
846  provided under s. 212.096 for creating a new job and hiring a 
847  person residing within the jurisdiction of a rural community 
848  county, as defined by s. 288.106(2) s. 288.106(1)(r). All other 
849  provisions of s. 212.096, including, but not limited to, those 
850  relating to the award of enhanced credits, apply to such 
851  businesses. 
852         (2) Notwithstanding the enterprise zone residency 
853  requirements set out in s. 220.03(1)(q), businesses as defined 
854  by s. 220.03(1)(c), located in rural enterprise zones as defined 
855  in s. 290.004, may receive the basic minimum credit provided 
856  under s. 220.181 for creating a new job and hiring a person 
857  residing within the jurisdiction of a rural community county, as 
858  defined by s. 288.106(2) s. 288.106(1)(r). All other provisions 
859  of s. 220.181, including, but not limited to, those relating to 
860  the award of enhanced credits apply to such businesses. 
861         Section 4. This act shall take effect July 1, 2010.