Senate Bill 2490

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    Florida Senate - 2000                                  SB 2490

    By Senators Kirkpatrick and Hargrett





    5-1608-00

  1                      A bill to be entitled

  2         An act relating to economic development;

  3         creating s. 414.224, F.S.; creating the

  4         Retention Enhancing Communities Initiative;

  5         providing for the selection of communities;

  6         requiring solicitation of proposals; providing

  7         for the selection of RECI participants by the

  8         WAGES Program State Board of Directors;

  9         providing for the appointment of liaisons;

10         authorizing the Governor to address barriers to

11         implementation of RECI proposals; providing for

12         the redirection of certain funds; providing for

13         RECI elements; requiring the Governor to

14         designate a coordinator; establishing a center

15         for community excellence; providing

16         appropriations for RECI elements; providing

17         restrictions of funds; providing for monitoring

18         and reporting; providing an effective date.

19

20  Be It Enacted by the Legislature of the State of Florida:

21

22         Section 1.  Section 414.224, Florida Statutes, is

23  created to read:

24         414.224  Retention Enhancing Communities Initiative.--

25         (1)  LEGISLATIVE INTENT.--The Legislature finds that

26  this state has numerous distressed urban cores with high

27  proportions of residents who are former and current WAGES

28  Program participants. The Legislature further finds that the

29  existence of strong neighborhoods and communities is crucial

30  to reduce recidivism among former WAGES Program participants,

31  and to create new jobs and promote job retention for current

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  1  WAGES Program participants. Therefore, it is the intent of the

  2  Legislature to create a program designed to develop these

  3  communities with the help of, and for the benefit of, current

  4  and former WAGES Program participants.

  5         (2)  CREATION.-- The Retention Enhancing Communities

  6  Initiative (RECI) is created to leverage federal, state, and

  7  local resources for community redevelopment initiatives that

  8  promote job retention among WAGES Program participants.

  9  Selected communities will identify and compete for projects

10  coordinated around the six community-enhancing elements of

11  community safety, community builders, community businesses,

12  community schools, community partnerships, and community

13  redevelopment.

14         (3) SELECTION OF RECI COMMUNITIES.--

15         (a) By July 1, 2000, the WAGES Program State Board of

16  Directors, in consultation with local WAGES coalitions, shall

17  identify 14 communities in the state's seven largest counties.

18  These communities must be compact, congruent, and contiguous

19  census tracts that have the highest concentrations of

20  residents who are current or former WAGES Program

21  participants. To the maximum extent possible, these

22  communities should coincide with federal empowerment zones,

23  enterprise zones established under chapter 290, Neighborhood

24  Improvement Districts established under chapter 163, community

25  redevelopment areas established under chapter 163, and Urban

26  High Crime Areas established under chapter 212. By August 1,

27  2000, the WAGES Program State Board of Directors must contract

28  with an independent entity to certify that the 14 communities

29  comply with the requirements of this section.

30         (b)  By July 10, 2000, the WAGES Program State Board of

31  Directors shall solicit proposals from the communities

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  1  identified for participation in RECI. The Governor shall

  2  appoint a liaison from a state agency to assist with each

  3  proposal and its implementation. The liaisons shall have the

  4  full assistance of the Executive Office of the Governor, all

  5  state agencies, and their employees. If a state employee is

  6  not able to assist a liaison because of state law or

  7  regulation, the liaison shall notify the Governor, the Office

  8  of Urban Opportunity, and the Office of Program Policy

  9  Analysis and Government Accountability concerning the impasse

10  and prepare proposals to resolve it. Upon a written request

11  from a liaison, the Governor may by executive order or

12  emergency rule address regulatory or procedural impasses to

13  enable prompt implementation of a community's proposal. Any

14  federal TANF funding appropriated by the state to benefit

15  WAGES participants, to assist needy families, or to promote

16  job placement and employment retention of WAGES participants

17  that is in excess of revenues necessary to fulfill the

18  appropriated purpose may, upon the written request of a

19  liaison, be redirected, notwithstanding any other provision of

20  law, with the approval of the Office of Urban Opportunity, the

21  WAGES Program State Board of Directors, and the Governor, to

22  support an approved project in a RECI community. Proposals

23  must be general in nature, no more than 20 pages long, and

24  include:

25         1. A brief plan describing how the community will

26  coordinate and incorporate the 6 RECI elements into the

27  community's redevelopment strategy;

28         2. Specific evidence of community support from

29  community-based organizations and local government for

30  participation in RECI;

31

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  1         3. For each RECI element, identification and commitment

  2  of local resources from community-based organizations, local

  3  government, and others, to be leveraged by federal and state

  4  resources;

  5         4.  Identification of the specific entity or person

  6  responsible for coordinating the community's participation in

  7  RECI; and

  8         5.  Identification of local administrative entities.

  9         (c) Based on proposal evaluation criteria developed by

10  the WAGES Program State Board of Directors, the board shall,

11  by October 1, 2000, select up to 9 communities to participate

12  in RECI, and shall notify each community of its selection. All

13  RECI projects must be fully operational by January 1, 2001,

14  and must be completed by December 31, 2002.

15         (4) RECI ELEMENTS.--After a community is selected as a

16  RECI participant, it may compete for awards in each RECI

17  element. Awards will be granted by the WAGES Program State

18  Board of Directors and will be based on a project plan that

19  must be consistent with the community's proposal describing

20  the coordination and incorporation of the RECI elements. The

21  WAGES Program State Board of Directors shall develop

22  guidelines and criteria for the application and award of the

23  funds. Criteria must provide additional weight for criteria

24  relating to community involvement, business involvement, and

25  local contributions. Unless otherwise provided for, the board

26  or its designated agents shall administer the award of funds

27  for each RECI element and must provide assurances that

28  projects are completed pursuant to project plans. RECI

29  elements include the following:

30         (a) WAGES Community Safety.--Funds may be awarded for

31  projects that increase the safety and reduce crime in RECI

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  1  communities. Funds may be used to train and employ WAGES

  2  Program participants in public safety jobs; establish security

  3  businesses and services; train residents in safety practices

  4  and organize safety networks; improve lighting, alarms, and

  5  law enforcement equipment; improve the safety of homes,

  6  buildings, and streets; and provide community police. Local

  7  law enforcement agencies must be contributing partners in

  8  safety projects. The Department of Community Affairs and the

  9  Florida Department of Law Enforcement shall each assign a

10  representative to assist these communities with public safety

11  issues and, notwithstanding any other provision of law, may

12  award public safety grants to these communities.

13         (b) WAGES Community Builders.--Funds may be awarded for

14  small community clean-up and enhancement projects that quickly

15  create visible improvements and for planning and

16  implementation of larger neighborhood revitalization and

17  economic development initiatives.

18         1. Funds for the WAGES Community Builders element may

19  be awarded for small community clean-up and enhancement

20  projects. Projects must include WAGES Program participants,

21  must last less than 3 weeks, and must be endorsed by the local

22  unit of government. Funding may not exceed $5,000 per project

23  without a waiver from the WAGES Program State Board of

24  Directors. The board shall enlist the Department of State's

25  Main Street program, Keep Florida Beautiful, Inc., and, if

26  approved by the Governor, the Florida National Guard, to

27  advise and assist with these projects and to redirect

28  resources to these communities.

29         2. Funds for the WAGES Community Builders element may

30  be awarded for the planning and implementation of large

31  neighborhood revitalization or economic development

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  1  initiatives. Funding for planning projects may not exceed

  2  $200,000, and may not, in total, exceed 20 percent of the

  3  funds available for this element. Funding for implementation

  4  projects may not in total exceed 20 percent of the funds

  5  available for this element and must primarily leverage

  6  federal, state, local, private, or foundation resources other

  7  than those provided for in this section. Planning and

  8  implementation projects must employ WAGES Program participants

  9  from the RECI community to the greatest extent possible.

10         (c) WAGES Community Businesses.--Funds may be awarded

11  for small business-development projects, including

12  national-franchise attraction efforts, microloans, guaranteed

13  commercial loans, technical assistance, self-employment, and

14  business incubators at educational institutions. At least 95

15  percent of funds awarded for these projects must be for the

16  benefit of WAGES Program participants in RECI communities. The

17  WAGES Program State Board of Directors shall work with the

18  Comptroller to target the linked-deposit program under s.

19  290.0075 into these communities, and the Comptroller shall, to

20  the greatest extent deemed practical, implement that program

21  in RECI communities. Using funds appropriated for this

22  element, board, or its designated agent, shall also establish

23  a $10-million loan-loss reserve to encourage and guarantee

24  commercial loans made under this element, and shall develop a

25  tax-free bond fund to provide and expand the secondary loan

26  market for commercial loans made in RECI communities. The

27  board, or its designated agent, shall also approach and

28  propose joint ventures with national franchisers who agree to

29  train individuals for and partially underwrite new franchise

30  ventures in RECI communities.

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  1         (d) WAGES Community Schools.--Funds may be awarded for

  2  WAGES Community School projects that upgrade schools through

  3  construction, repair, or renovation, or which provide training

  4  and employment to WAGES Program participants to assist with

  5  transportation, school services, and security. Schools

  6  accepting this assistance must offer before-school,

  7  after-school, and summer-school programs for students who are

  8  WAGES Program participants.

  9         (e) WAGES Community Partnerships.--Funds may be awarded

10  for WAGES Community Partnership projects to make payments of

11  tax credits to businesses that contribute to projects in RECI

12  communities which are eligible under the community

13  contribution tax credit program under ss. 220.183 and

14  624.5105. Business contributions must benefit WAGES Program

15  participants in these communities. Funds may equal 30 percent

16  of the business's contribution and may apply to contributions

17  of any size if adequate funds are available in this RECI

18  element. The Office of Tourism, Trade, and Economic

19  Development and the Department of Revenue shall assist the

20  WAGES Program State Board of Directors in administering such

21  tax credits. Projects may also match, up to a

22  dollar-for-dollar level, any foundation awards to RECI

23  communities which will improve job retention and reduce public

24  assistance dependency as determined by the WAGES Program State

25  Board of Directors.

26         (f) WAGES Community Redevelopment.--Funds may be

27  awarded for WAGES Community Redevelopment projects to

28  facilitate the planning, preparing, marketing, and financing

29  of residential, mixed-use, and commercial development

30  projects, as well as residential and business infrastructure

31  redevelopment projects in RECI communities. Projects that

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  1  would mainly result in gentrification of the community, that

  2  would not employ a preponderance of WAGES Program

  3  participants, and that predominately create residences or

  4  business sites that are beyond the anticipated income level of

  5  working WAGES Program participants are not eligible.

  6         1. The Office of Tourism, Trade, and Economic

  7  Development shall administer projects under this paragraph and

  8  shall develop criteria for the award of the funds. Funds

  9  available under this element must be leveraged with federal,

10  state, and local resources, including, but not limited to,

11  those available through the local unit of government under the

12  Community Development Block Grant, section 108 loan guarantee

13  program, and through state agencies including the Department

14  of Community Affairs, the Department of Environmental

15  Protection, and the Florida Housing Finance Corporation.

16         2. A redevelopment finance review team including the

17  WAGES Program State Board of Directors, the Office of Tourism,

18  Trade, and Economic Development, Enterprise Florida, Inc., the

19  appropriate local WAGES coalition, the appropriate local unit

20  of government, the Department of Community Affairs, the

21  Department of Environmental Protection, and the Florida

22  Housing Finance Corporation shall review all project plans and

23  coordinate available resources, matching expenditures to

24  eligible and available revenues that may be invested in the

25  project. The team shall seek federal funding assistance in

26  these projects and may identify and recommend projects for

27  award under the WAGES Targeted Employment and WAGES

28  transportation projects established by law. The team shall

29  recommend appropriate projects to the State Board of

30  Administration for public investment. Their collaborative

31  project package shall constitute a recommended public

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  1  financing commitment to induce private developers to finance

  2  the remaining costs of the project. Notwithstanding s.

  3  216.301, funds appropriated for the purpose of this paragraph

  4  are not subject to reversion.

  5         3. The Office of Tourism, Trade, and Economic

  6  Development, based upon the recommendation from the team, may

  7  award project funds to RECI communities for up to 30 percent

  8  of the total project cost. In awarding funds, the office shall

  9  consider factors including, but not limited to, the project's

10  direct employment of WAGES Program participants in planning,

11  development, or construction; eventual direct employment of

12  WAGES Program participants; residences or businesses to be

13  owned by WAGES Program participants; impact on retention in

14  employment of WAGES Program participants; impact on lowering

15  recidivism and dependency on public assistance programs;

16  demonstrated local public and private commitment; and the

17  potential to enhance and upgrade the community.

18         4. To facilitate timely response and induce the

19  development of site opportunities where a community-based or

20  private-sector partner exists, the Office of Tourism, Trade,

21  and Economic Development may award funds for infrastructure

22  feasibility studies, design and engineering activities,

23  project development and packaging, or other infrastructure

24  planning and preparation activities. Such funds may not exceed

25  $300,000 per project, and may not exceed 5 percent of the

26  total funding available under this paragraph.

27         5. The Office of Tourism, Trade, and Economic

28  Development shall pursue execution of a memorandum of

29  agreement with the Department of Housing and Urban Development

30  and other federal or state partners under which state funds

31  available through this element may be advanced, in excess of

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  1  the prescribed state share, for a project that has received

  2  from the department or partner a preliminary determination of

  3  eligibility for financial support. State funds in excess of

  4  the prescribed state share which are advanced pursuant to this

  5  paragraph and a memorandum of agreement shall be reimbursed

  6  when funds are awarded under an application for other

  7  financing.

  8         6. To facilitate development of prospective sites, the

  9  Office of Tourism, Trade, and Economic Development may award

10  funds for surveys, feasibility studies, project development,

11  packaging, marketing, and other activities related to the

12  identification, marketing, and preparation of sites of up to

13  $150,000. Such funds shall require a match from local sources

14  of 33 percent and the total grants awarded under this

15  subparagraph may not exceed 5 percent of the total funding

16  available under this paragraph.

17         (5) The Governor shall name by July 15, 2000, a

18  coordinator in the Office of Urban Opportunity with the

19  authority, established by executive order, to work with the

20  WAGES Program State Board of Directors to direct agency

21  assistance, solve problems, and commit resources to RECI

22  communities.

23         (6) By August 15, 2000, working with the Workforce

24  Development Board, the WAGES Program State Board of Directors

25  shall establish a center for community excellence, affiliated

26  with an educational institution or group of educational

27  institutions, which will provide research, consulting,

28  technical assistance, capacity building, training, and program

29  assistance services to RECI communities.

30         (7) FUNDING.--

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  1         (a)  To implement this act, the Department of Children

  2  and Family Services may spend up to $50 million from Temporary

  3  Assistance for Needy Families (TANF) Block Grant funds

  4  pursuant to criteria adopted by the WAGES Program State Board

  5  of Directors.

  6         (b) Any expenditure from the Temporary Assistance for

  7  Needy Families block grant must be expended in accordance with

  8  the requirements and limitations of Title IV of the Social

  9  Security Act, as amended, or any other applicable federal

10  requirement or limitation in law. Prior to any expenditure of

11  such funds, the WAGES Program State Board of Directors and the

12  Secretary of Children and Family Services, or the secretary's

13  designee, shall certify that controls are in place to ensure

14  that such funds are expended and reported in accordance with

15  the requirements and limitations of federal law. Any entity to

16  which funds are awarded must obtain the required certification

17  prior to any expenditure of funds.

18         (c) Unexpended proceeds derived from a project

19  completed with the use of program funds, beyond the operating

20  costs and debt service, are restricted to further expenditures

21  within the element. Such unexpended proceeds may not be used

22  for purposes other than those authorized by this act.

23         (d) No more than 5 percent of the funds available under

24  this section may be used by the board or its designated agents

25  to administer and monitor the awards.

26         (e) Funds authorized under this section must augment

27  the existing efforts or resources of local communities rather

28  than offset or supplant them.

29         (8) The Governor shall notify the President of the

30  United States and the Florida Congressional Delegation of any

31  delays by the federal government that affect the prompt

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  1  implementation of this section, and enlist their assistance in

  2  resolution of such delays. By budget amendment, the Governor

  3  shall identify and transfer funds to continue this initiative

  4  on schedule, notwithstanding federal delays. With the

  5  assistance of the Secretary of Children and Family Services

  6  and the Attorney General, the Governor shall then explore

  7  administrative and judicial options to gain reimbursement.

  8         (9) MONITORING AND REPORTING.--

  9         (a) The independent entity selected by the WAGES

10  Program State Board of Directors to certify compliance by the

11  14 communities identified under paragraph (2)(a) shall also

12  identify four other similar communities to serve as a control

13  group for RECI. The entity must measure performance trends in

14  the control group communities, the communities that applied

15  for RECI designation but were not selected, and the

16  communities selected to participate in RECI. The four control

17  communities shall be known only to the entity until the

18  completion of the initiative. The entity shall develop,

19  working with the Office of Program Policy Analysis and

20  Government Accountability and the WAGES Program State Board of

21  Directors, criteria by October 1, 2000, to measure the impact

22  of the initiative. Such criteria must include the total

23  revenues generated and invested in RECI communities, and the

24  amount of revenue saved from the retention of WAGES Program

25  participants.

26         (b) In addition to a comprehensive final report due

27  February 15, 2003, the WAGES Program State Board of Directors

28  must report to the Governor and Legislature every 6 months

29  beginning January 1, 2001, on the progress of RECI. Reports

30  must include tangible impacts of the initiative. The final

31  report shall include recommendations relating to the potential

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  1  development of a RECI program for communities in mid-sized

  2  counties. The report must additionally recognize the three

  3  most successful RECI communities and designate these

  4  communities Florida's "come-back communities."

  5         Section 2.  This act shall take effect upon becoming a

  6  law.

  7

  8            *****************************************

  9                          SENATE SUMMARY

10    Creates an economic redevelopment program, the Retention
      Enhancing Communities Initiative, and provides for the
11    selection of communities that require the solicitation of
      proposals to provide development in an attempt to reduce
12    recidivism in former WAGES Program participants and to
      create new jobs for current participants. Provides for
13    the selection of participants in the program. Provides
      for the appointment of liasons and a coordinator.
14    Provides guidelines, powers, and duties. Provides for
      monitoring and reporting. Provides appropriations. (See
15    bill for details.)

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