Florida Senate - 2022                        COMMITTEE AMENDMENT
       Bill No. SB 800
       
       
       
       
       
       
                                Ì264886[Î264886                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/10/2022           .                                
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       The Committee on Finance and Tax (Albritton) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (35) is added to section 212.02,
    6  Florida Statutes, to read:
    7         212.02 Definitions.—The following terms and phrases when
    8  used in this chapter have the meanings ascribed to them in this
    9  section, except where the context clearly indicates a different
   10  meaning:
   11         (35) “Opportunity zone” means a population census tract
   12  designated by the United States Department of the Treasury as a
   13  qualified opportunity zone pursuant to s. 1400Z-1(b)(1)(B) of
   14  the Internal Revenue Code and located in a rural community as
   15  defined in s. 288.0656.
   16         Section 2. Paragraph (v) is added to subsection (5) of
   17  section 212.08, Florida Statutes, and subsection (19) is added
   18  to that section, to read:
   19         212.08 Sales, rental, use, consumption, distribution, and
   20  storage tax; specified exemptions.—The sale at retail, the
   21  rental, the use, the consumption, the distribution, and the
   22  storage to be used or consumed in this state of the following
   23  are hereby specifically exempt from the tax imposed by this
   24  chapter.
   25         (5) EXEMPTIONS; ACCOUNT OF USE.—
   26         (v)Building materials used in the rehabilitation of real
   27  property located in an opportunity zone.
   28         1. For the purposes of the exemption provided in this
   29  paragraph, the term:
   30         a. “Building materials” means tangible personal property
   31  that becomes a component part of improvements to real property.
   32         b. “Real property” has the same meaning as provided in s.
   33  192.001(12), except that the term does not include a condominium
   34  parcel or condominium property as defined in s. 718.103.
   35         c. “Rehabilitation of real property” means the
   36  reconstruction, renovation, restoration, rehabilitation,
   37  construction, or expansion of improvements to real property.
   38         d. “Substantially completed” has the same meaning as
   39  provided in s. 192.042(1).
   40         2. Building materials used in the rehabilitation of real
   41  property are exempt from the tax imposed by this chapter upon an
   42  affirmative showing to the satisfaction of the department that
   43  the items have been used for the rehabilitation of real property
   44  located in an opportunity zone. This exemption inures to the
   45  owner, lessee, or lessor at the time the real property is
   46  rehabilitated, but only through a refund of previously paid
   47  taxes. To receive a refund pursuant to this paragraph, the
   48  owner, lessee, or lessor of the rehabilitated real property must
   49  file an application under oath with the governing body having
   50  jurisdiction over the opportunity zone where the property is
   51  located, as applicable. A single application for a refund may be
   52  submitted for multiple, contiguous parcels that were part of a
   53  single parcel divided as part of the rehabilitation of the real
   54  property. All other requirements of this paragraph apply to each
   55  parcel on an individual basis. The application must include all
   56  of the following:
   57         a. The name and address of the person claiming the refund.
   58         b. An address and assessment roll parcel number of the
   59  rehabilitated real property for which a refund of previously
   60  paid taxes is being sought.
   61         c. A description of the improvements made to accomplish the
   62  rehabilitation of the real property.
   63         d. A copy of a valid building permit issued by the county
   64  or municipal building department for the rehabilitation of the
   65  real property.
   66         e. A sworn statement, under penalty of perjury, from the
   67  general contractor licensed in this state with whom the
   68  applicant contracted to make the improvements necessary to
   69  rehabilitate the real property. The sworn statement must list
   70  the building materials used to rehabilitate the real property,
   71  the actual cost of the building materials, and the amount of
   72  sales tax paid in this state on the building materials. If a
   73  general contractor was not used, the applicant, not a general
   74  contractor, shall make the sworn statement required by this sub
   75  subparagraph. Copies of the invoices that show the purchase of
   76  the building materials used in the rehabilitation and the
   77  payment of sales tax on the building materials must be attached
   78  to the sworn statement provided by the general contractor or by
   79  the applicant. Unless the actual cost of building materials used
   80  in the rehabilitation of real property and the payment of sales
   81  taxes are documented by a general contractor or by the applicant
   82  in this manner, the cost of the building materials is deemed to
   83  be an amount equal to 40 percent of the increase in assessed
   84  value for ad valorem tax purposes.
   85         f. The census tract number of the opportunity zone in which
   86  the rehabilitated real property is located.
   87         g. A certification by the local building code inspector
   88  that the improvements necessary to rehabilitate the real
   89  property are substantially completed.
   90         3. Within 10 working days after receipt of an application,
   91  the governing body shall review the application to determine if
   92  it contains all the information required by subparagraph 1. and
   93  meets the criteria set forth in this paragraph. The governing
   94  body shall certify all applications that contain the required
   95  information and are eligible to receive a refund. The
   96  certification must be in writing, and a copy of the
   97  certification shall be transmitted to the executive director of
   98  the department. The applicant is responsible for forwarding a
   99  certified application to the department within the time
  100  specified in subparagraph 4.
  101         4. An application for a refund must be submitted to the
  102  department within 6 months after the rehabilitation of the real
  103  property is deemed to be substantially completed by the local
  104  building code inspector or by November 1 after the rehabilitated
  105  real property is first subject to assessment.
  106         5. Only one exemption through a refund of previously paid
  107  taxes for the rehabilitation of real property is allowed for any
  108  single parcel of real property unless there is a change in
  109  ownership, a new lessor, or a new lessee of the real property. A
  110  refund may not be granted unless the amount to be refunded
  111  exceeds $500. A refund may not exceed the lesser of 97 percent
  112  of the Florida sales or use tax paid on the cost of the building
  113  materials used in the rehabilitation of the real property, as
  114  determined pursuant to sub-subparagraph 2.e., or $7,500. The
  115  department shall make the refund within 30 days after formally
  116  approving the application.
  117         6. The department shall adopt rules governing the manner
  118  and form of refund applications and may establish guidelines as
  119  to the requisites for an affirmative showing of qualification
  120  for exemption under this paragraph.
  121         (19) ENERGY USED IN AN OPPORTUNITY ZONE.—
  122         (a) Beginning July 1, 2023, a qualified business that uses
  123  electrical energy, natural gas, or propane at a fixed location
  124  in an opportunity zone in a municipality that has enacted an
  125  ordinance pursuant to s. 166.231(9) which provides for exemption
  126  of municipal utility taxes on such businesses shall receive an
  127  exemption equal to 50 percent of the tax imposed by this
  128  chapter. A qualified business may receive such exemption for a
  129  period of 5 years from the billing period beginning not more
  130  than 30 days following the department notifying the applicable
  131  utility company that an exemption has been authorized pursuant
  132  to this subsection and s. 166.231(9).
  133         (b) To receive this exemption, a business must file an
  134  application with the department on a form provided for the
  135  purposes of this subsection and s. 166.231(9). The application
  136  must be made under oath and include all of the following:
  137         1. The name and location of the business.
  138         2. The census tract number of the opportunity zone in which
  139  the business is located.
  140         3. The date on which electrical, natural gas, or propane
  141  service is to be first initiated at the business.
  142         4. The name and mailing address of the entity from which
  143  electrical energy, natural gas, or propane is to be purchased.
  144         5. The date of the application.
  145         6. The name of the city in which the business is located.
  146         (c) An application for an exemption under this subsection
  147  must be submitted to the department within 6 months after the
  148  occurrence of the appropriate qualifying provision set out in
  149  paragraph (f).
  150         (d) If, in a subsequent audit conducted by the department,
  151  it is determined that the business did not meet the criteria
  152  mandated in this subsection, the amount of taxes exempted shall
  153  immediately be due and payable to the department by the
  154  business, together with the appropriate interest and penalty,
  155  computed from the due date of each bill for the electrical
  156  energy, natural gas, or propane purchased as exempt under this
  157  subsection, in the manner prescribed by this chapter.
  158         (e) The department shall adopt rules governing applications
  159  and the required forms for, and issuance of, the exemption
  160  authorized in this subsection and provisions for recapture of
  161  taxes exempted under this subsection, and the department may
  162  establish guidelines as to qualifications for the exemption.
  163         (f) For the purpose of the exemption provided in this
  164  subsection, the term “qualified business” means a business that
  165  is:
  166         1. First occupying a new structure to which electrical,
  167  natural gas, or propane service, other than that used for
  168  construction purposes, has not been previously provided or
  169  furnished;
  170         2. Newly occupying an existing, remodeled, renovated, or
  171  rehabilitated structure to which electrical, natural gas, or
  172  propane service, other than that used for remodeling,
  173  renovation, or rehabilitation of the structure, has not been
  174  provided or furnished in the three preceding billing periods; or
  175         3. Occupying a new, remodeled, rebuilt, renovated, or
  176  rehabilitated structure for which a refund has been granted
  177  pursuant to paragraph (5)(v).
  178         Section 3. Paragraph (d) of subsection (1) of section
  179  288.018, Florida Statutes, is amended to read:
  180         288.018 Regional Rural Development Grants Program.—
  181         (1)
  182         (d) Grant funds received by a regional economic development
  183  organization must be matched each year by nonstate financial or
  184  in-kind contributions resources in an amount equal to 15 25
  185  percent of the state contribution.
  186         Section 4. Paragraph (c) of subsection (2) of section
  187  288.065, Florida Statutes, is amended to read:
  188         288.065 Rural Community Development Revolving Loan Fund.—
  189         (2)
  190         (c) All repayments of principal and interest shall be
  191  returned to the loan fund and made available for loans to other
  192  applicants. However, in a rural area of opportunity designated
  193  by the Governor, and upon approval by the department, repayments
  194  of principal and interest may be retained by the applicant if
  195  such repayments are dedicated and matched to fund regionally
  196  based economic development organizations representing the rural
  197  area of opportunity.
  198         Section 5. Subsection (1), paragraphs (b), (c), and (e) of
  199  subsection (2), and subsection (3) of section 288.0655, Florida
  200  Statutes, are amended to read:
  201         288.0655 Rural Infrastructure Fund.—
  202         (1) There is created within the department the Rural
  203  Infrastructure Fund to facilitate the planning, preparing, and
  204  financing of infrastructure projects in rural communities which
  205  will encourage job creation, capital investment, and the
  206  strengthening and diversification of rural economies by
  207  promoting tourism, trade, and economic development.
  208         (2)
  209         (b) To facilitate access of rural communities and rural
  210  areas of opportunity as defined by the Rural Economic
  211  Development Initiative to infrastructure funding programs of the
  212  Federal Government, such as those offered by the United States
  213  Department of Agriculture and the United States Department of
  214  Commerce, and state programs, including those offered by Rural
  215  Economic Development Initiative agencies, and to facilitate
  216  local government or private infrastructure funding efforts, the
  217  department may award grants for up to 75 50 percent of the total
  218  infrastructure project cost. Eligible projects must be related
  219  to specific job-creation or job-retention opportunities.
  220  Eligible uses of funds projects may also include improving any
  221  inadequate infrastructure that has resulted in regulatory action
  222  that prohibits economic or community growth, reducing the costs
  223  to community users of proposed infrastructure improvements that
  224  exceed such costs in comparable communities, and improving
  225  access to and the availability of broadband Internet service.
  226  Eligible uses of funds shall include improvements to public
  227  infrastructure for industrial or commercial sites, upgrades to
  228  or development of public tourism infrastructure, and
  229  improvements to broadband Internet service and access in
  230  unserved or underserved rural communities. Improvements to
  231  broadband Internet service and access must be conducted through
  232  a partnership or partnerships with one or more dealers, as
  233  defined in s. 202.11(2), and the partnership or partnerships
  234  must be established through a competitive selection process that
  235  is publicly noticed. Authorized infrastructure may include the
  236  following public or public-private partnership facilities: storm
  237  water systems; telecommunications facilities; broadband
  238  facilities; roads or other remedies to transportation
  239  impediments; nature-based tourism facilities; or other physical
  240  requirements necessary to facilitate tourism, trade, and
  241  economic development activities in the community. Authorized
  242  infrastructure may also include publicly or privately owned
  243  self-powered nature-based tourism facilities, publicly owned
  244  telecommunications facilities, and broadband facilities, and
  245  additions to the distribution facilities of the existing natural
  246  gas utility as defined in s. 366.04(3)(c), the existing electric
  247  utility as defined in s. 366.02, or the existing water or
  248  wastewater utility as defined in s. 367.021(12), or any other
  249  existing water or wastewater facility, which owns a gas or
  250  electric distribution system or a water or wastewater system in
  251  this state where:
  252         1. A contribution-in-aid of construction is required to
  253  serve public or public-private partnership facilities under the
  254  tariffs of any natural gas, electric, water, or wastewater
  255  utility as defined herein; and
  256         2. Such utilities as defined herein are willing and able to
  257  provide such service.
  258         (c) To facilitate timely response and induce the location
  259  or expansion of specific job creating opportunities, The
  260  department may award grants of up to $300,000 for infrastructure
  261  feasibility studies, design and engineering activities, or other
  262  infrastructure planning and preparation activities. Authorized
  263  grants shall be up to $50,000 for an employment project with a
  264  business committed to create at least 100 jobs; up to $150,000
  265  for an employment project with a business committed to create at
  266  least 300 jobs; and up to $300,000 for a project in a rural area
  267  of opportunity. Grants awarded under this paragraph may be used
  268  in conjunction with grants awarded under paragraph (b), provided
  269  that the total amount of both grants does not exceed 30 percent
  270  of the total project cost. In evaluating applications under this
  271  paragraph, the department shall consider the extent to which the
  272  application seeks to minimize administrative and consultant
  273  expenses.
  274         (e) To enable local governments to access the resources
  275  available pursuant to s. 403.973(18), the department may award
  276  grants for surveys, feasibility studies, and other activities
  277  related to the identification and preclearance review of land
  278  which is suitable for preclearance review. Authorized grants
  279  under this paragraph do not require a local match and may not
  280  exceed $75,000 each, except in the case of a project in a rural
  281  area of opportunity, in which case the grant may not exceed
  282  $300,000. Any funds awarded under this paragraph must be matched
  283  at a level of 50 percent with local funds, except that any funds
  284  awarded for a project in a rural area of opportunity must be
  285  matched at a level of 33 percent with local funds. If an
  286  application for funding is for a catalyst site, as defined in s.
  287  288.0656, the requirement for local match may be waived pursuant
  288  to the process in s. 288.06561. In evaluating applications under
  289  this paragraph, the department shall consider the extent to
  290  which the application seeks to minimize administrative and
  291  consultant expenses.
  292         (3) The department, in consultation with Enterprise
  293  Florida, Inc., the Florida Tourism Industry Marketing
  294  Corporation, the Department of Environmental Protection, and the
  295  Florida Fish and Wildlife Conservation Commission, as
  296  appropriate, shall review and certify applications pursuant to
  297  s. 288.061. The review shall include an evaluation of the
  298  economic benefit of the projects and their long-term viability.
  299  The department shall have final approval for any grant under
  300  this section.
  301         Section 6. Section 288.066, Florida Statutes, is created to
  302  read:
  303         288.066 Rural opportunity tax refund program.—
  304         (1) DEFINITIONS.—As used in this section:
  305         (a) “Account” means the Economic Development Incentives
  306  Account within the Economic Development Trust Fund established
  307  under s. 288.095.
  308         (b) “Authorized local economic development agency” means a
  309  public or private entity, including an entity defined in s.
  310  288.075, authorized by a county or municipality to promote the
  311  general business or industrial interests of that county or
  312  municipality.
  313         (c) “Average private sector wage in the area” means the
  314  statewide private sector average wage or the average of all
  315  private sector wages and salaries in the county or in the
  316  standard metropolitan area in which the business is located.
  317         (d) “Business” means an employing unit, as defined in s.
  318  443.036, registered for reemployment assistance purposes with
  319  the state agency providing reemployment assistance tax
  320  collection services under an interagency agreement pursuant to
  321  s. 443.1316, or a subcategory or division of an employing unit
  322  accepted by the state agency providing reemployment assistance
  323  tax collection services as a reporting unit.
  324         (e) “Corporate headquarters business” means an
  325  international, national, or regional headquarters office of a
  326  multinational or multistate business enterprise or national
  327  trade association, whether separate from or connected with other
  328  facilities used by such business.
  329         (f) “Expansion of an existing business” means the expansion
  330  of an existing Florida business by or through additions to real
  331  and personal property, resulting in a net increase in
  332  employment.
  333         (g) “Fiscal year” means the fiscal year of the state.
  334         (h) “Jobs” means full-time equivalent positions, including,
  335  but not limited to, positions obtained from a temporary
  336  employment agency or employee leasing company or through a union
  337  agreement or coemployment under a professional employer
  338  organization agreement, that result directly from a project in
  339  this state. The term does not include temporary construction
  340  jobs involved with the construction of facilities for the
  341  project or any jobs previously included in any application for
  342  tax refunds under s. 288.1045 or this section.
  343         (i) “Local financial support” means funding from local
  344  sources, public or private, which is paid to the Economic
  345  Development Trust Fund and which is equal to 20 percent of the
  346  annual tax refund for a qualified target industry business. A
  347  qualified target industry business may not provide, directly or
  348  indirectly, more than 5 percent of such funding in any fiscal
  349  year. The sources of such funding may not include, directly or
  350  indirectly, state funds appropriated from the General Revenue
  351  Fund or any state trust fund, excluding tax revenues shared with
  352  local governments pursuant to law.
  353         (j) “Local financial support exemption option” means the
  354  option to exercise an exemption from the local financial support
  355  requirement available to any applicant whose project is located
  356  in a brownfield area, a rural city, or a rural community. Any
  357  applicant that exercises this option is not eligible for more
  358  than 80 percent of the total tax refunds allowed such applicant
  359  under this section.
  360         (k) “New business” means a business that applies for a tax
  361  refund under this section before beginning operations in this
  362  state and that is a legal entity separate from any other
  363  commercial or industrial operations owned by the same business.
  364         (l) “Project” means the creation of a new business or
  365  expansion of an existing business.
  366         (m) “Qualified target industry business” means a target
  367  industry business approved by the department to be eligible for
  368  tax refunds under this section.
  369         (n) “Rural city” means a city having a population of 10,000
  370  or less, or a city having a population of greater than 10,000
  371  but less than 20,000, which has been determined by the
  372  department to have such economic characteristics as, but not
  373  limited to, a significant percentage of residents on public
  374  assistance, a significant percentage of residents with incomes
  375  below the poverty level, or a significant percentage of the
  376  city’s employment base in agriculture-related jobs.
  377         (o) “Rural community” means:
  378         1. A county having a population of 75,000 or less.
  379         2. A county having a population of 125,000 or less which is
  380  contiguous to a county having a population of 75,000 or less.
  381         3. A municipality within a county described in subparagraph
  382  1. or subparagraph 2.
  383  
  384  For purposes of this paragraph, population shall be determined
  385  in accordance with the most recent official estimate pursuant to
  386  s. 186.901.
  387         (p) “Target industry business” means a corporate
  388  headquarters business or any business engaged in one of the
  389  target industries identified pursuant to subsection (2). The
  390  term does not include any business engaged in retail industry
  391  activities; any electric utility company as defined in s.
  392  366.02(2); any phosphate or other solid minerals severance,
  393  mining, or processing operation; any oil or gas exploration or
  394  production operation; or any business subject to regulation by
  395  the Division of Hotels and Restaurants of the Department of
  396  Business and Professional Regulation. Any business in NAICS code
  397  5611 or 5614, office administrative services and business
  398  support services, respectively, may be considered a target
  399  industry business only after the local governing body and
  400  Enterprise Florida, Inc., determine that the community where the
  401  business may locate has conditions affecting the fiscal and
  402  economic viability of the local community or area, including,
  403  but not limited to, such factors as low per capita income, high
  404  unemployment, high underemployment, and a lack of year-round
  405  stable employment opportunities, and such conditions may be
  406  improved by the location of such a business to the community. By
  407  January 1 of every 3rd year, beginning January 1, 2023, the
  408  department, in consultation with Enterprise Florida, Inc.,
  409  economic development organizations, the State University System,
  410  local governments, employee and employer organizations, market
  411  analysts, and economists, shall review and, as appropriate,
  412  revise the list of such target industries and submit the list to
  413  the Governor, the President of the Senate, and the Speaker of
  414  the House of Representatives.
  415         (q) “Taxable year” has the same meaning as provided in s.
  416  220.03(1)(y).
  417         (2)DESIGNATION OF TARGET INDUSTRIES.—In identifying target
  418  industries, the department, in consultation with Enterprise
  419  Florida, Inc., shall consider the following criteria:
  420         (a)Future growth.Whether industry forecasts indicate
  421  strong expectation for future growth in both employment and
  422  output, according to the most recent available data. Special
  423  consideration must be given to businesses that export goods to,
  424  or provide services in, international markets and to businesses
  425  that replace international imports of goods or services.
  426         (b)Stability.Special consideration must be given to an
  427  industry not subject to periodic layoffs, whether due to
  428  seasonality or sensitivity to volatile economic variables, such
  429  as weather. The industry must also be relatively resistant to
  430  recession, so that the demand for products of this industry is
  431  not typically subject to decline during an economic downturn.
  432         (c)High wage.Whether the industry pays relatively high
  433  wages compared to statewide or area averages.
  434         (d)Market and resource independent.Whether industry
  435  business locations are not dependent upon Florida markets or
  436  resources, as indicated by industry analysis, except for
  437  businesses in the renewable energy industry.
  438         (e)Industrial base diversification and strengthening.
  439  Whether the industry is contributing toward expanding or
  440  diversifying the state’s or area’s economic base, as indicated
  441  by analysis of the industry’s share of employment and output,
  442  compared to national and regional trends. Special consideration
  443  must be given to industries that strengthen regional economies
  444  by adding value to basic products or building regional
  445  industrial clusters, as indicated by industry analysis. Special
  446  consideration must also be given to the development of strong
  447  industrial clusters that include defense and homeland security
  448  businesses.
  449         (f)Positive economic impact.—Whether the industry is
  450  expected to have strong positive economic impacts on or benefits
  451  to the state or regional economies. Special consideration must
  452  be given to industries that facilitate the development of this
  453  state as a hub for domestic and global trade and logistics.
  454         (3) TAX REFUND; ELIGIBLE AMOUNTS.—
  455         (a) A qualified target industry business may be allowed a
  456  refund from the account for the amount of eligible taxes the
  457  business paid which is certified by the department. The total
  458  amount of refunds for all fiscal years for each qualified target
  459  industry business must be determined pursuant to subsection (4).
  460  The annual amount of a refund to a qualified target industry
  461  business must be determined pursuant to subsection (5).
  462         (b) Upon approval by the department, a qualified target
  463  industry business located in a rural community is allowed tax
  464  refund payments equal to $6,000 multiplied by the number of jobs
  465  the business creates.
  466         (c) A qualified target industry business may:
  467         1. Receive refunds from the account for the following taxes
  468  due and paid by that business beginning with the first taxable
  469  year of the business which begins after the business has been
  470  certified as a qualified target industry business:
  471         a. Corporate income taxes under chapter 220.
  472         b. Insurance premium tax under s. 624.509.
  473         2. Receive refunds from the account for the following taxes
  474  due and paid by that business after being certified as a
  475  qualified target industry business:
  476         a. Taxes on sales, use, and other transactions under
  477  chapter 212.
  478         b. Intangible personal property taxes under chapter 199.
  479         c. Excise taxes on documents under chapter 201.
  480         d. Ad valorem taxes paid, as defined in s. 220.03(1).
  481         e. State communications services taxes administered under
  482  chapter 202. This provision does not apply to the gross receipts
  483  tax imposed under chapter 203 and administered under chapter 202
  484  or the local communications services tax authorized under s.
  485  202.19.
  486         (d) A qualified target industry business may not receive a
  487  refund under this section for any amount of credit, refund, or
  488  exemption previously granted to that business for any of the
  489  taxes listed in paragraph (c). If the department provides a
  490  refund for such taxes and the taxes are subsequently adjusted by
  491  the application of any credit, refund, or exemption granted to
  492  the qualified target industry business other than as provided in
  493  this section, the business must reimburse the account for the
  494  amount of that credit, refund, or exemption. A qualified target
  495  industry business shall notify and tender payment to the
  496  department within 20 days after receiving any credit, refund, or
  497  exemption other than one provided under this section.
  498         (e) Refunds made available under this section may not be
  499  expended in connection with the relocation of a business from
  500  one community to another community in this state unless the
  501  department determines that, without such relocation, the
  502  business will move outside this state, or it determines that the
  503  business has a compelling economic rationale for relocation and
  504  that the relocation will create additional jobs.
  505         (f) A qualified target industry business that fraudulently
  506  claims a refund under this section:
  507         1. Is liable for repayment of the amount of the refund to
  508  the account, plus a mandatory penalty in the amount of 200
  509  percent of the tax refund. The repayment shall be deposited into
  510  the General Revenue Fund.
  511         2. Commits a felony of the third degree, punishable as
  512  provided in s. 775.082, s. 775.083, or s. 775.084.
  513         (4) APPLICATION AND APPROVAL PROCESS.—
  514         (a) To apply for certification as a qualified target
  515  industry business under this section, the business must file an
  516  application with the department before the business decides to
  517  locate in this state or before the business decides to expand
  518  its existing operations in this state. The application must
  519  include, but need not be limited to, the following information:
  520         1. The applicant’s federal employer identification number
  521  and, if applicable, state sales tax registration number.
  522         2. The proposed permanent location of the applicant’s
  523  facility in this state where the project is to be located.
  524         3. A description of the type of business activity or
  525  product covered by the project, including a minimum of a five
  526  digit NAICS code for all activities included in the project. As
  527  used in this paragraph, the term “NAICS” means those
  528  classifications contained in the North American Industry
  529  Classification System, as published in 2007 by the Office of
  530  Management and Budget, Executive Office of the President, and
  531  updated periodically.
  532         4. The proposed number of net new full-time equivalent
  533  Florida jobs at the qualified target industry business as of
  534  December 31 of each year included in the project and the average
  535  wage of those jobs. If more than one type of business activity
  536  or product is included in the project, the number of jobs and
  537  average wage for those jobs must be separately stated for each
  538  type of business activity or product.
  539         5. The total number of full-time equivalent employees
  540  employed by the applicant in this state, if applicable.
  541         6. The anticipated commencement date of the project.
  542         7. A brief statement explaining the role that the estimated
  543  tax refunds to be requested will play in the decision of the
  544  applicant to locate or expand in this state.
  545         8. An estimate of the proportion of the sales resulting
  546  from the project which will be made outside this state.
  547         9. An estimate of the proportion of the cost of the
  548  machinery and equipment, and any other resources necessary in
  549  the development of its product or service, to be used by the
  550  business in its Florida operations which will be purchased
  551  outside this state.
  552         10. A resolution adopted by the governing board of the
  553  county or municipality in which the project will be located,
  554  which resolution recommends that the applicant be approved as a
  555  qualified target industry business and specifies that the
  556  commitments of local financial support necessary for the target
  557  industry business exist. Before the passage of such resolution,
  558  the department may also accept an official letter from an
  559  authorized local economic development agency which endorses the
  560  proposed target industry project and pledges that sources of
  561  local financial support for such project exist. For the purposes
  562  of making pledges of local financial support under this
  563  subparagraph, the local governing board shall pass a one-time
  564  resolution officially designating the authorized local economic
  565  development agency.
  566         11. Any additional information requested by the department.
  567         (b) Each application must be submitted to the department
  568  for determination of eligibility. The department shall review
  569  and evaluate each application based on, but not limited to, the
  570  following criteria:
  571         1. Expected contributions to the state’s economy,
  572  consistent with the state strategic economic development plan
  573  prepared by the department.
  574         2. The economic benefits of the proposed award of tax
  575  refunds under this section.
  576         3. The amount of capital investment to be made by the
  577  applicant in this state.
  578         4. The local financial commitment and support for the
  579  project.
  580         5. The expected effect of the project on the unemployed and
  581  underemployed in the county where the project will be located.
  582         6. The expected effect of the award on the viability of the
  583  project and the probability that the project would be undertaken
  584  in this state if such tax refunds are granted to the applicant.
  585         7. Whether the business activity or project is in an
  586  industry identified by the department as a target industry
  587  business that contributes to the economic growth of this state
  588  and the area in which the business is located, produces a higher
  589  standard of living for residents of this state in the new global
  590  economy, or can be shown to make an equivalent contribution to
  591  the area’s and this state’s economic progress.
  592         8. A review of the business’ past activities in this state
  593  or other states, including whether the business has been
  594  subjected to criminal or civil fines and penalties. This
  595  subparagraph does not require the disclosure of confidential
  596  information.
  597         (c) Applications shall be reviewed and certified pursuant
  598  to s. 288.061. The department shall include in its review
  599  projections of the tax refunds the business would be eligible to
  600  receive in each fiscal year based on the creation and
  601  maintenance of the net new Florida jobs specified in
  602  subparagraph (a)4. as of December 31 of the preceding state
  603  fiscal year.
  604         (d) The department may not certify any target industry
  605  business as a qualified target industry business if the value of
  606  tax refunds to be included in that letter of certification
  607  exceeds the available amount of authority to certify new
  608  businesses as determined in s. 288.095(3). However, if the
  609  commitments of local financial support represent less than 20
  610  percent of the eligible tax refund payments, or to otherwise
  611  preserve the viability and fiscal integrity of the program, the
  612  department may certify a qualified target industry business to
  613  receive tax refund payments of less than the allowable amount
  614  specified in paragraph (3)(b). A letter of certification that
  615  approves an application must specify the maximum amount of tax
  616  refund that will be available to the qualified target industry
  617  business in each fiscal year and the total amount of tax refunds
  618  that will be available to the business for all fiscal years.
  619         (e) This section does not create a presumption that an
  620  applicant will receive any tax refunds under this section.
  621  However, the department may issue nonbinding opinion letters,
  622  upon the request of prospective applicants, as to the
  623  applicants’ eligibility and the potential amount of refunds.
  624         (5) ANNUAL CLAIM FOR REFUND.—
  625         (a) To be eligible to claim any scheduled tax refund, a
  626  qualified target industry business must apply by January 31 of
  627  each fiscal year to the department for the tax refund scheduled
  628  to be paid from the appropriation for the fiscal year that
  629  begins on July 1 following the January 31 claims-submission
  630  date. The department may, upon written request, grant a 30-day
  631  extension of the filing date.
  632         (b) The claim for refund by the qualified target industry
  633  business must include a copy of all receipts pertaining to the
  634  payment of taxes for which the refund is sought.
  635         (c) The department may waive the requirement for proof of
  636  taxes paid in future years for a qualified target industry
  637  business that provides the department with proof that, in a
  638  single year, the business has paid an amount of state taxes from
  639  the categories in paragraph (3)(c) which is at least equal to
  640  the total amount of tax refunds that the business may receive
  641  through successful completion of its project.
  642         (d) A tax refund may not be approved for a qualified target
  643  industry business unless the required local financial support
  644  has been paid into the account for that refund. If the local
  645  financial support provided is less than 20 percent of the
  646  approved tax refund, the tax refund must be reduced. The tax
  647  refund may not exceed an amount equal to 5 times the amount of
  648  the local financial support received. The qualified target
  649  industry business must provide a report listing all sources of
  650  the local financial support to the department when such support
  651  is paid to the account.
  652         (e) The department, with such assistance as may be required
  653  from the Department of Revenue, shall, by June 30 following the
  654  scheduled date for submission of the tax refund claim, specify
  655  by written order the approval or disapproval of the tax refund
  656  claim and, if approved, the amount of the tax refund authorized
  657  to be paid to the qualified target industry business. The
  658  department may grant an extension of this date upon the request
  659  of the qualified target industry business for the purpose of
  660  filing additional information in support of the claim.
  661         (f) The total amount of tax refund claims approved by the
  662  department under this section in any fiscal year must not exceed
  663  the amount authorized under s. 288.095(3).
  664         (g) This section does not create a presumption that a tax
  665  refund claim will be approved and paid.
  666         (h) Upon approval of the tax refund under paragraphs (d)
  667  and (e), the Chief Financial Officer shall issue a warrant for
  668  the amount specified in the written order. If the written order
  669  is appealed, the Chief Financial Officer may not issue a warrant
  670  for a refund to the qualified target industry business until the
  671  conclusion of all appeals of that order.
  672         (6) ADMINISTRATION.—
  673         (a) The department may verify information provided in any
  674  claim submitted for tax credits under this section with regard
  675  to employment and wage levels or the payment of the taxes to the
  676  appropriate agency or authority, including the Department of
  677  Revenue or any local government or authority.
  678         (b) To facilitate the process of monitoring and auditing
  679  applications made under this section, the department may provide
  680  a list of qualified target industry businesses to the Department
  681  of Revenue or to any local government or authority. The
  682  department may request the assistance of those entities with
  683  respect to monitoring jobs, wages, and the payment of the taxes
  684  listed in subsection (3).
  685         (c) Funds specifically appropriated for tax refunds for
  686  qualified target industry businesses under this section may not
  687  be used by the department for any purpose other than the payment
  688  of tax refunds authorized by this section.
  689         Section 7. Section 288.095, Florida Statutes, is amended to
  690  read:
  691         288.095 Economic Development Trust Fund.—
  692         (1) The Economic Development Trust Fund is created within
  693  the Department of Economic Opportunity. Moneys deposited into
  694  the fund must be used only to support the authorized activities
  695  and operations of the department.
  696         (2) There is created, within the Economic Development Trust
  697  Fund, the Economic Development Incentives Account. The Economic
  698  Development Incentives Account consists of moneys appropriated
  699  to the account for purposes of the tax incentives programs
  700  authorized under ss. 288.066, 288.1045, and 288.106 ss. 288.1045
  701  and 288.106, and local financial support provided under ss.
  702  288.066, 288.1045, and 288.106. Moneys in the Economic
  703  Development Incentives Account shall be subject to the
  704  provisions of s. 216.301(1)(a).
  705         (3)(a) The department may approve applications for
  706  certification pursuant to ss. 288.066, 288.1045(3), and 288.106.
  707  However, the total state share of tax refund payments may not
  708  exceed $35 million.
  709         (b) The total amount of tax refund claims approved for
  710  payment by the department based on actual project performance
  711  may not exceed the amount appropriated to the Economic
  712  Development Incentives Account for such purposes for the fiscal
  713  year. Claims for tax refunds under ss. 288.066, 288.1045, and
  714  288.106 shall be paid in the order the claims are approved by
  715  the department. In the event the Legislature does not
  716  appropriate an amount sufficient to satisfy the tax refunds
  717  under ss. 288.066, 288.1045, and 288.106 in a fiscal year, the
  718  department shall pay the tax refunds from the appropriation for
  719  the following fiscal year. By March 1 of each year, the
  720  department shall notify the legislative appropriations
  721  committees of the Senate and House of Representatives of any
  722  anticipated shortfall in the amount of funds needed to satisfy
  723  claims for tax refunds from the appropriation for the current
  724  fiscal year.
  725         (c) Moneys in the Economic Development Incentives Account
  726  may be used only to pay tax refunds and make other payments
  727  authorized under s. 288.066, s. 288.1045, s. 288.106, or s.
  728  288.107.
  729         (d) The department may adopt rules necessary to carry out
  730  the provisions of this subsection, including rules providing for
  731  the use of moneys in the Economic Development Incentives Account
  732  and for the administration of the Economic Development
  733  Incentives Account.
  734         Section 8. This act shall take effect July 1, 2022.
  735  
  736  ================= T I T L E  A M E N D M E N T ================
  737  And the title is amended as follows:
  738         Delete everything before the enacting clause
  739  and insert:
  740                        A bill to be entitled                      
  741         An act relating to economic development; amending s.
  742         212.02, F.S.; defining the term “opportunity zone”;
  743         amending s. 212.08, F.S.; defining terms; providing an
  744         exemption from the state tax on sales, use, and other
  745         transactions for building materials used in the
  746         rehabilitation of real property in an opportunity
  747         zone; specifying requirements, limitations, and
  748         procedures for the exemption; requiring the department
  749         to adopt rules; authorizing the department to
  750         establish guidelines; providing an exemption from the
  751         state tax on sales, use, and other transactions for
  752         energy used in an opportunity zone, subject to certain
  753         ordinances adopted by municipalities; specifying
  754         requirements, limitations, and procedures for the
  755         exemption; providing a penalty; requiring the
  756         department to adopt rules; authorizing the department
  757         to establish guidelines; defining the term “qualified
  758         business”; amending s. 288.018, F.S.; revising the
  759         matching requirement for grant funds received by a
  760         regional economic development organization; amending
  761         s. 288.065, F.S.; deleting the requirement for certain
  762         repayments to be matched in rural areas of
  763         opportunity; amending s. 288.0655, F.S.; revising the
  764         purpose of the Rural Infrastructure Fund; revising
  765         authorized amounts and uses of certain grants;
  766         providing that certain grants do not require local
  767         matches; revising the requirements for review of
  768         certain applications; creating s. 288.066, F.S.;
  769         establishing a rural opportunity tax refund program
  770         for qualified target industry businesses in rural
  771         areas; defining terms; specifying the criteria the
  772         Department of Economic Opportunity and Enterprise
  773         Florida, Inc., must consider in identifying target
  774         industries; authorizing the grant of certain tax
  775         refunds under certain circumstances; specifying
  776         limitations on refunds; providing administrative and
  777         criminal penalties; specifying requirements and
  778         procedures for applications; specifying requirements
  779         and limitations for the review of applications by the
  780         Department of Economic Opportunity; providing
  781         construction; authorizing the Department of Economic
  782         Opportunity to issue certain opinion letters;
  783         providing requirements, procedures, and limitations
  784         for annual refund claims; providing requirements for
  785         the Chief Financial Officer for the issuance of
  786         warrants for refunds; providing for administration by
  787         the Department of Economic Opportunity; amending s.
  788         288.095, F.S.; conforming provisions to changes made
  789         by the act; providing an effective date.