Florida Senate - 2018 SB 1450 By Senator Steube 23-00609B-18 20181450__ 1 A bill to be entitled 2 An act relating to a sales tax refund for eligible job 3 training organizations; creating s. 212.099, F.S.; 4 defining terms; providing a specified sales tax refund 5 to eligible businesses providing job training and 6 employment services to certain individuals; requiring 7 that the refund be used exclusively for specified 8 purposes; specifying the limit on the total amount of 9 refunds issued annually; requiring that refunds be 10 granted on a first-come, first-served basis; providing 11 application requirements and procedures for 12 certification with the Department of Economic 13 Opportunity; providing that a certification remains in 14 effect so long as an eligible business complies with 15 certain requirements; specifying requirements for the 16 Department of Economic Opportunity relating to 17 certification decisions and eligibility; prohibiting 18 the Department of Revenue from issuing refunds after 19 receiving a certain notification from the Department 20 of Economic Opportunity; providing requirements for 21 eligible businesses applying for refunds with the 22 Department of Revenue; providing construction; 23 requiring eligible businesses to provide a specified 24 annual report to the Department of Economic 25 Opportunity; authorizing the Department of Economic 26 Opportunity to adopt rules; authorizing the Department 27 of Revenue to examine any granted refunds within a 28 specified timeframe; providing that overpaid refunds 29 or refunds issued to ineligible businesses are subject 30 to repayment and certain interest provisions; 31 providing an effective date. 32 33 Be It Enacted by the Legislature of the State of Florida: 34 35 Section 1. Section 212.099, Florida Statutes, is created to 36 read: 37 212.099 Sales tax refund for eligible job training 38 organizations.— 39 (1) As used in this section, the term: 40 (a) “Capital costs” means the costs of construction, 41 improvements, or renovations or the costs associated with the 42 purchase of equipment, the purpose of which is to expand 43 employment opportunities. The term does not include the cost of 44 real property. 45 (b) “Eligible business” means an organization that: 46 1. Is an exempt organization under s. 501(c)(3) of the 47 Internal Revenue Code of 1986, as amended; 48 2. Provides job training and employment services to low 49 income persons as defined in s. 420.0004, individuals who have 50 workplace disadvantages, or individuals with barriers to 51 employment; 52 3. Is accredited by the Commission on Accreditation of 53 Rehabilitation Facilities; and 54 4. Is certified by the Department of Economic Opportunity 55 as meeting the requirements of this section. 56 (c) “Growth in employment hours” means the annual growth in 57 hours worked at the eligible business. 58 (d) “Job training and employment services” means programs 59 and services that improve workers’ job readiness, assist them in 60 gaining employment and adapting to the changing labor market, 61 and help them achieve employment success through self 62 sufficiency. 63 (2) An eligible business is entitled to a refund of 10 64 percent of the sales tax remitted to the department during the 65 prior state fiscal year on its sales of goods donated to the 66 business. The refund must be reserved exclusively for use in any 67 of the following: 68 (a) Growth in employment hours. 69 (b) Job training and employment services to low-income 70 persons as defined in s. 420.0004, individuals who have 71 workplace disadvantages, or individuals with barriers to 72 employment. 73 (c) Job training and employment services for veterans. 74 (d) Capital costs. 75 (3) The total amount of refunds issued under this section 76 may not exceed $2 million in any state fiscal year, and refunds 77 must be granted on a first-come, first-served basis. 78 (4) A business seeking a refund under this section must 79 submit an initial application to the Department of Economic 80 Opportunity by July 15 which sets forth that the business meets 81 the requirements under paragraph (1)(b) and that the refund will 82 be used exclusively for the purposes under subsection (2). The 83 business may submit supporting information as prescribed by 84 rule. 85 (5)(a) The Department of Economic Opportunity must verify 86 the application and notify the business of its determination 87 within 15 days after receiving the application. If the 88 Department of Economic Opportunity approves the application, it 89 must send the eligible business a notice indicating that the 90 business is certified to receive a refund of certain sales and 91 use tax remitted under this chapter. Upon the Department of 92 Economic Opportunity’s issuance of a certification, the 93 certification remains in effect so long as the eligible business 94 is in compliance with this section. 95 (b) The decision of the Department of Economic Opportunity 96 must be in writing or may be provided by e-mail if agreed to by 97 the eligible business. Upon approval, the Department of Economic 98 Opportunity shall transmit a copy of the decision to the 99 department. 100 (c) If the Department of Economic Opportunity determines 101 that an eligible business no longer qualifies for the refund 102 under this section, the Department of Economic Opportunity must 103 immediately notify the department. The department may not issue 104 a refund after receiving such notification. 105 (6) An eligible business certified under this section must 106 apply to the department between August 1 and August 31 of each 107 year it seeks a refund. The first application for a refund 108 submitted to the department must be accompanied by a copy of the 109 certification. 110 (7) For purposes of this section, an eligible business 111 consisting of commonly owned and controlled entities is deemed 112 to be a single business entity. 113 (8) By July 15 of each year, an eligible business must 114 provide a report to the Department of Economic Opportunity which 115 describes the use of the amount refunded. The report must 116 include all of the following: 117 (a) The amount of the refund used for capital costs. 118 (b) The amount of the refund used to create growth in 119 employment hours. 120 (c) The total annual growth in employment hours. 121 (d) The amount of the refund used for job training and 122 employment services. 123 (e) The number of individuals who participated in job 124 training and employment services at the eligible business for 125 the fiscal year in which the requested funds were remitted to 126 the department. 127 (f) A statement declaring that the eligible business 128 continues to meet the requirements of this section. 129 (9)(a) The Department of Economic Opportunity may adopt 130 rules necessary to administer this section, including rules for 131 the approval and disapproval of applications by businesses. 132 (b) Notwithstanding s. 95.091(3)(a)6.b., the department may 133 examine any refund within 4 years after the date the refund is 134 granted. The overpayment of a refund or a refund issued to an 135 ineligible business is subject to repayment and interest at the 136 rate calculated pursuant to s. 213.235. 137 Section 2. This act shall take effect July 1, 2018.