Senate Bill sb2008c1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 CS for SB 2008
By the Committee on Commerce and Economic Opportunities; and
Senator Diaz de la Portilla
310-1633-01
1 A bill to be entitled
2 An act relating to economic development;
3 amending s. 288.012, F.S.; changing the date
4 for submission of certain reports by foreign
5 offices; providing for the reports to be
6 compiled and submitted by Enterprise Florida,
7 Inc., as part of its annual report; amending s.
8 288.095, F.S.; increasing the amount of the
9 total state share of tax refunds that may be
10 scheduled annually for payment under the
11 qualified target industry tax refund program
12 and the qualified defense contractor tax refund
13 program; amending s. 288.106, F.S., relating to
14 the tax refund program for qualified target
15 industry businesses; revising requirements for
16 application for certification as such business
17 with respect to the number of new jobs at the
18 business and projections by the Office of
19 Tourism, Trade, and Economic Development of
20 refunds based thereon; revising requirements
21 relating to the tax refund agreement with
22 respect to job creation and the time for filing
23 of claims for refund; revising provisions
24 relating to annual claims for refund; providing
25 an application deadline; revising provisions
26 relating to the order authorizing a tax refund;
27 specifying that the section does not create a
28 presumption that a claim will be approved and
29 paid; providing applicability to tax refund
30 agreements and claims for refund executed prior
31 to the effective date of the act; revising the
1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 CS for SB 2008
310-1633-01
1 agencies with which the office may verify
2 information and to which the office may provide
3 information; amending s. 288.90151, F.S.;
4 authorizing Enterprise Florida, Inc., to hire
5 an economic analysis firm to assist with
6 certain reporting requirements; directing
7 Enterprise Florida, Inc., to hire a survey firm
8 to assist with a customer-satisfaction survey;
9 conforming changes; amending s. 288.905, F.S.;
10 revising the deadline for submission of updates
11 or modifications to the strategic plan
12 developed by Enterprise Florida, Inc.; amending
13 s. 288.980, F.S.; providing that grants by the
14 Office of Tourism, Trade, and Economic
15 Development to support activities related to
16 the retention of military installations
17 potentially affected by closure or realignment
18 must be from funds specifically appropriated
19 therefor; providing an effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Subsection (3) of section 288.012, Florida
24 Statutes, is amended to read:
25 288.012 State of Florida foreign offices.--The
26 Legislature finds that the expansion of international trade
27 and tourism is vital to the overall health and growth of the
28 economy of this state. This expansion is hampered by the lack
29 of technical and business assistance, financial assistance,
30 and information services for businesses in this state. The
31 Legislature finds that these businesses could be assisted by
2
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 CS for SB 2008
310-1633-01
1 providing these services at State of Florida foreign offices.
2 The Legislature further finds that the accessibility and
3 provision of services at these offices can be enhanced through
4 cooperative agreements or strategic alliances between state
5 entities, local entities, foreign entities, and private
6 businesses.
7 (3) By December October 1 of each year, each foreign
8 office shall submit to the Office of Tourism, Trade, and
9 Economic Development a complete and detailed report on its
10 activities and accomplishments during the preceding fiscal
11 year. The reports must be compiled and submitted to the Office
12 of Tourism, Trade, and Economic Development on behalf of the
13 foreign offices by Enterprise Florida, Inc., as part of the
14 annual report of Enterprise Florida, Inc., required under s.
15 288.906. In a format provided by Enterprise Florida, Inc., the
16 report must set forth information on:
17 (a) The number of Florida companies assisted.
18 (b) The number of inquiries received about investment
19 opportunities in this state.
20 (c) The number of trade leads generated.
21 (d) The number of investment projects announced.
22 (e) The estimated U.S. dollar value of sales
23 confirmations.
24 (f) The number of representation agreements.
25 (g) The number of company consultations.
26 (h) Barriers or other issues affecting the effective
27 operation of the office.
28 (i) Changes in office operations which are planned for
29 the current fiscal year.
30 (j) Marketing activities conducted.
31
3
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 CS for SB 2008
310-1633-01
1 (k) Strategic alliances formed with organizations in
2 the country in which the office is located.
3 (l) Activities conducted with other Florida foreign
4 offices.
5 (m) Any other information that the office believes
6 would contribute to an understanding of its activities.
7 Section 2. Paragraph (a) of subsection (3) of section
8 288.095, Florida Statutes, is amended to read:
9 288.095 Economic Development Trust Fund.--
10 (3)(a) The Office of Tourism, Trade, and Economic
11 Development may approve applications for certification
12 pursuant to ss. 288.1045(3) and 288.106. However, the total
13 state share of tax refund payments scheduled in all active
14 certifications for fiscal year 2000-2001 shall not exceed $24
15 million. The state share of tax refund payments scheduled in
16 all active certifications for fiscal year 2001-2002 may and
17 each subsequent year shall not exceed $30 million. The total
18 for each subsequent fiscal year may not exceed $35 million.
19 Section 3. Paragraphs (a) and (d) of subsection (3),
20 paragraph (a) of subsection (4), and subsections (5) and (6)
21 of section 288.106, Florida Statutes, are amended to read:
22 288.106 Tax refund program for qualified target
23 industry businesses.--
24 (3) APPLICATION AND APPROVAL PROCESS.--
25 (a) To apply for certification as a qualified target
26 industry business under this section, the business must file
27 an application with the office before the business has made
28 the decision to locate a new business in this state or before
29 the business had made the decision to expand an existing
30 business in this state. The application shall include, but is
31 not limited to, the following information:
4
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 CS for SB 2008
310-1633-01
1 1. The applicant's federal employer identification
2 number and the applicant's state sales tax registration
3 number.
4 2. The permanent location of the applicant's facility
5 in this state at which the project is or is to be located.
6 3. A description of the type of business activity or
7 product covered by the project, including four-digit SIC codes
8 for all activities included in the project.
9 4. The number of net new full-time equivalent Florida
10 jobs at the qualified target industry business as of December
11 31 of each year included in this state that are or will be
12 dedicated to the project and the average wage of those jobs.
13 If more than one type of business activity or product is
14 included in the project, the number of jobs and average wage
15 for those jobs must be separately stated for each type of
16 business activity or product.
17 5. The total number of full-time equivalent employees
18 employed by the applicant in this state.
19 6. The anticipated commencement date of the project.
20 7. A brief statement concerning the role that the tax
21 refunds requested will play in the decision of the applicant
22 to locate or expand in this state.
23 8. An estimate of the proportion of the sales
24 resulting from the project that will be made outside this
25 state.
26 9. A resolution adopted by the governing board of the
27 county or municipality in which the project will be located,
28 which resolution recommends that certain types of businesses
29 be approved as a qualified target industry business and states
30 that the commitments of local financial support necessary for
31 the target industry business exist. In advance of the passage
5
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 CS for SB 2008
310-1633-01
1 of such resolution, the office may also accept an official
2 letter from an authorized local economic development agency
3 that endorses the proposed target industry project and pledges
4 that sources of local financial support for such project
5 exist. For the purposes of making pledges of local financial
6 support under this subsection, the authorized local economic
7 development agency shall be officially designated by the
8 passage of a one-time resolution by the local governing
9 authority.
10 10. Any additional information requested by the
11 office.
12 (d) The office shall forward its written findings and
13 evaluation concerning each application meeting the
14 requirements of paragraph (b) to the director within 45
15 calendar days after receipt of a complete application. The
16 office shall notify each target industry business when its
17 application is complete, and of the time when the 45-day
18 period begins. In its written report to the director, the
19 office shall specifically address each of the factors
20 specified in paragraph (c) and shall make a specific
21 assessment with respect to the minimum requirements
22 established in paragraph (b). The office shall include in its
23 report projections of the tax refunds the business would be
24 eligible to receive refund claim that will be sought by the
25 target industry business in each fiscal year based on the
26 creation and maintenance of the net new Florida jobs specified
27 in subparagraph (a)4. as of December 31 of the preceding state
28 fiscal year information submitted in the application.
29 (4) TAX REFUND AGREEMENT.--
30
31
6
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 CS for SB 2008
310-1633-01
1 (a) Each qualified target industry business must enter
2 into a written agreement with the office which specifies, at a
3 minimum:
4 1. The total number of full-time equivalent jobs in
5 this state that will be dedicated to the project, the average
6 wage of those jobs, the definitions that will apply for
7 measuring the achievement of these terms during the pendency
8 of the agreement, and a time schedule or plan for when such
9 jobs will be in place and active in this state. This
10 information must be the same as the information contained in
11 the application submitted by the business under subsection
12 (3).
13 2. The maximum amount of tax refunds which the
14 qualified target industry business is eligible to receive on
15 the project and the maximum amount of a tax refund that the
16 qualified target industry business is eligible to receive in
17 each fiscal year, based on the job creation and maintenance
18 schedule specified in subparagraph 1.
19 3. That the office may review and verify the financial
20 and personnel records of the qualified target industry
21 business to ascertain whether that business is in compliance
22 with this section.
23 4. The date by after which, in each fiscal year, the
24 qualified target industry business may file a an annual claim
25 under subsection (5) to be considered to receive a tax refund
26 in the following fiscal year.
27 5. That local financial support will be annually
28 available and will be paid to the account. The director may
29 not enter into a written agreement with a qualified target
30 industry business if the local financial support resolution is
31 not passed by the local governing authority within 90 days
7
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 CS for SB 2008
310-1633-01
1 after he or she has issued the letter of certification under
2 subsection (3).
3
4 Any tax refund agreement or amendment executed prior to the
5 effective date of this act shall be subject to the terms and
6 conditions specified in that agreement as dictated by the laws
7 in force at the time of execution, except with respect to
8 paragraphs (5)(e), (g), and (i).
9 (5) ANNUAL CLAIM FOR REFUND.--
10 (a) To be eligible to claim any scheduled tax refund,
11 a qualified target industry business that has entered into a
12 tax refund agreement with the office under subsection (4) must
13 may apply by January 31 of once each fiscal year to the office
14 for the a tax refund scheduled to be paid from the
15 appropriation for the fiscal year which begins on July 1
16 following the January 31 claims submission date. The office
17 may, upon written request, grant a 30-day extension of the
18 filing date. The application must be made on or after the date
19 specified in that agreement.
20 (b) The claim for refund by the qualified target
21 industry business must include a copy of all receipts
22 pertaining to the payment of taxes for which the refund is
23 sought and data related to achievement of each performance
24 item specified in the tax refund agreement. The amount
25 requested as a tax refund may not exceed the amount specified
26 for the relevant that fiscal year in that agreement.
27 (c) A tax refund may not be approved for a qualified
28 target industry business unless the required local financial
29 support has been paid into the account for that refund in that
30 fiscal year. If the local financial support provided is less
31 than 20 percent of the approved tax refund, the tax refund
8
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 CS for SB 2008
310-1633-01
1 must be reduced. In no event may the tax refund exceed an
2 amount that is equal to 5 times the amount of the local
3 financial support received. Further, funding from local
4 sources includes any tax abatement granted to that business
5 under s. 196.1995 or the appraised market value of municipal
6 or county land conveyed or provided at a discount to that
7 business. The amount of any tax refund for such business
8 approved under this section must be reduced by the amount of
9 any such tax abatement granted or the value of the land
10 granted; and the limitations in subsection (2) and paragraph
11 (3)(f) must be reduced by the amount of any such tax abatement
12 or the value of the land granted. A report listing all sources
13 of the local financial support shall be provided to the office
14 when such support is paid to the account.
15 (d) A prorated tax refund, less a 5-percent penalty,
16 shall be approved for a qualified target industry business
17 provided all other applicable requirements have been satisfied
18 and the business proves to the satisfaction of the director
19 that it has achieved at least 80 percent of its projected
20 employment.
21 (e) The director, with such assistance as may be
22 required from the office, the Department of Revenue, or the
23 Agency for Workforce Innovation Department of Labor and
24 Employment Security, shall, by June 30 following the scheduled
25 date for the tax refund claim submission, specify by written
26 final order the approval or disapproval of the tax refund
27 claim and, if approved, the amount of the tax refund that is
28 authorized to be paid to for the qualified target industry
29 business for the fiscal year within 30 days after the date
30 that the claim for the annual tax refund is received by the
31 office. The office may grant an extension of this date on the
9
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 CS for SB 2008
310-1633-01
1 request of the qualified target industry business for the
2 purpose of filing additional information in support of the
3 claim.
4 (f) The total amount of tax refund claims approved by
5 the director under this section in any fiscal year must not
6 exceed the amount authorized under s. 288.095(3).
7 (g) Nothing in this section shall create a presumption
8 that a scheduled tax refund claim will be approved and paid.
9 (h)(g) Upon approval of the tax refund under
10 paragraphs (c), (d), and (e), the Comptroller shall issue a
11 warrant for the amount specified in the final order. If the
12 final order is appealed, the Comptroller may not issue a
13 warrant for a refund to the qualified target industry business
14 until the conclusion of all appeals of that order.
15 (i) Claims authorized in tax refund agreements or
16 amendments executed prior to the effective date of this act
17 shall be filed and evaluated under the terms and conditions
18 specified in those agreements or amendments and the laws in
19 effect at the time of execution, unless amended after that
20 date.
21 (6) ADMINISTRATION.--
22 (a) The office is authorized to verify information
23 provided in any claim submitted for tax credits under this
24 section with regard to employment and wage levels or the
25 payment of the taxes to the appropriate agency or authority,
26 including the Department of Revenue, the Agency for Workforce
27 Innovation Department of Labor and Employment Security, or any
28 local government or authority.
29 (b) To facilitate the process of monitoring and
30 auditing applications made under this program, the office may
31 provide a list of qualified target industry businesses to the
10
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 CS for SB 2008
310-1633-01
1 Department of Revenue, to the Agency for Workforce Innovation
2 Department of Labor and Employment Security, or to any local
3 government or authority. The office may request the assistance
4 of those entities with respect to monitoring the payment of
5 the taxes listed in subsection (2).
6 Section 4. Subsection (8) of section 288.90151,
7 Florida Statutes, is amended to read:
8 288.90151 Return on investment from activities of
9 Enterprise Florida, Inc.--
10 (8) Enterprise Florida, Inc., in consultation with the
11 Office of Program Policy Analysis and Government
12 Accountability, shall hire a private accounting firm or an
13 economic analysis firm to develop the methodology for
14 establishing and reporting return-on-investment and in-kind
15 contributions as described in this section and a survey firm
16 to develop, analyze, and report on the results of the
17 customer-satisfaction survey. The Office of Program Policy
18 Analysis and Government Accountability shall review and offer
19 feedback on the methodology before it is implemented. The
20 firms used to satisfy the requirements of this subsection
21 private accounting firm shall certify whether the applicable
22 statements in the annual report comply with this subsection.
23 Section 5. Subsection (2) of section 288.905, Florida
24 Statutes, is amended to read:
25 288.905 Duties of the board of directors of Enterprise
26 Florida, Inc.--
27 (2) The board of directors shall, in conjunction with
28 the Office of Tourism, Trade, and Economic Development, the
29 Office of Urban Opportunities, and local and regional economic
30 development partners, develop a strategic plan for economic
31 development for the State of Florida. Such plan shall be
11
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2001 CS for SB 2008
310-1633-01
1 submitted to the Governor, the President of the Senate, the
2 Speaker of the House of Representatives, the Senate Minority
3 Leader, and the House Minority Leader and shall be updated or
4 modified before January 31 1 of each year. The plan must be
5 approved by the board of directors prior to submission to the
6 Governor and Legislature.
7 Section 6. Paragraph (a) of subsection (2) of section
8 288.980, Florida Statutes, is amended to read:
9 288.980 Military base retention; legislative intent;
10 grants program.--
11 (2)(a) The Office of Tourism, Trade, and Economic
12 Development is authorized to award grants from any funds
13 specifically appropriated available to it to support
14 activities related to the retention of military installations
15 potentially affected by federal base closure or realignment.
16 Section 7. This act shall take effect July 1, 2001.
17
18 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
19 SB 2008
20
21 The committee substitute makes the following changes to SB
2008:
22
1. Amends s. 288.106, F.S., to improve the budgetary
23 process for the Qualified Target Industry Tax Refund
Program by altering the timeline for approval of program
24 refunds by the Office of Tourism, Trade, and Economic
Development (OTTED).
25
2. Amends s. 288.980, F.S., to clarify that OTTED may only
26 utilize funds specifically appropriated for military
base retention activities for such programs.
27
3. Strikes proposed language requiring agencies with the
28 authority to audit Enterprise Florida, Inc., to
coordinate, to the maximum extent practicable, with each
29 other so that a single state audit is conducted each
year.
30
31
12
CODING: Words stricken are deletions; words underlined are additions.