HB 0003E 2003
1	A bill to be entitled
2	An act relating to the Economic Investment Mega Fund
3	Incentive; creating s. 288.1089, F.S.; providing
4	legislative findings; creating the Economic Investment
5	Mega Fund Incentive within the Office of Tourism, Trade,
6	and Economic Development for certain purposes; providing
7	definitions; providing an incentive award limitation;
8	providing for award application and eligibility; providing
9	business qualification requirements; providing proposal
10	evaluation and recommendations requirements for Enterprise
11	Florida, Inc.; providing for negotiation of award amounts
12	by the office; providing for agreements for payments of
13	certain moneys under certain circumstances; providing
14	criteria for project approval or disapproval; providing
15	for incentive payment agreements; requiring Enterprise
16	Florida, Inc., to assist the office in validating certain
17	business performances; requiring a report; authorizing the
18	office to allocate certain funds for certain purposes;
19	amending s. 288.1088, F.S.; requiring the Executive Office
20	of the Governor to recommend approval of certain projects
21	and release of certain funds under certain circumstances;
22	requiring performance conditions for funds release;
23	providing an effective date.
24
25	Be It Enacted by the Legislature of the State of Florida:
26
27	Section 1. Section 288.1089, Florida Statutes, is created
28	to read:
29	288.1089 Economic Investment Mega Fund Incentive.--
30	(1) LEGISLATIVE FINDINGS; CREATION OF ECONOMIC INVESTMENT
31	MEGA FUND INCENTIVE.--
32	(a) The Legislature finds that attracting, retaining, and
33	providing favorable conditions for the growth of certain high-
34	impact business facilities in this state provides widespread
35	economic benefits to the public through high-quality employment
36	opportunities in such facilities and in related facilities
37	attracted to this state or region through an enhanced
38	entrepreneurial climate in the state or region, and the
39	resulting business and employment opportunities, and through the
40	stimulation and enhancement of the state's universities and
41	community colleges. Serious regional, national, and
42	international competition exists for these facilities and in
43	most instances, when all available resources for economic
44	development have been used, the state continues to encounter
45	severe competitive disadvantages in vying for these business
46	facilities.
47	(b) The Legislature therefore hereby creates the Economic
48	Investment Mega Fund Incentive within the Office of Tourism,
49	Trade, and Economic Development to ensure that sufficient
50	resources shall be available to respond to extraordinary
51	economic opportunities and to compete effectively for these
52	high-impact business facilities.
53	(2) DEFINITIONS.--As used in this section:
54	(a) “Competitive gap” means the difference between the
55	cost of locating the project in this state versus identified
56	locations under consideration in other states or countries when
57	the total cost of start up and operations, incentive offers, and
58	other relevant factors are considered in this state versus those
59	alternate locations.
60	(b) "Cumulative investment" means the total private
61	investment in buildings and equipment made by a qualified
62	business since the beginning of construction of such facility.
63	(c) "Director" means the director of the Office of
64	Tourism, Trade, and Economic Development.
65	(d) "Eligible business" means a business meeting the
66	requirements of subsection (5).
67	(e) "Fiscal year" means the state fiscal year.
68	(f) "Jobs" means full-time equivalent positions, as that
69	term is consistent with terms used by the Agency for Workforce
70	Innovation and the United States Department of Labor for
71	purposes of unemployment compensation tax administration and
72	employment estimation, resulting directly from a project in this
73	state. The term does not include temporary construction jobs
74	involved in the construction of a project facility.
75	(g) "Office" means the Office of Tourism, Trade, and
76	Economic Development.
77	(h) "Qualified business" means an eligible business that
78	has been approved to receive an economic investment mega fund
79	incentive award.
80	(i) "Research and development" means basic and applied
81	research in science or engineering, as well as the design,
82	development, and testing of prototypes or processes of new or
83	improved products. Research and development does not mean market
84	research, routine consumer product testing, sales research,
85	research in the social sciences or psychology, nontechnological
86	activities ,or technical services.
87	(3) ECONOMIC INVESTMENT MEGA FUND INCENTIVE AWARDS;
88	LIMITATION.--The total amount of active economic investment mega
89	fund incentive awards scheduled for payment by the office may
90	not exceed the amount appropriated for economic investment mega
91	fund incentives.
92	(4) AWARD APPLICATION; ELIGIBILITY.--To be eligible for
93	consideration for an economic investment mega fund incentive
94	award, a business must submit a written application to
95	Enterprise Florida, Inc. before the business has made the
96	decision to locate a new business in this state or before the
97	business has made the decision to expand an existing business in
98	this state. The application shall include, but is not limited
99	to:
100	(a) The applicant's federal employer identification
101	number, unemployment account number, and state sales tax
102	registration number. If these numbers are not available at the
103	time of application, they must be submitted to the office in
104	writing prior to the disbursement of any payments under this
105	section.
106	(b) The location in this state at which the project is
107	located or is to be located.
108	(c) A description of the type of business activity,
109	product, or research and development undertaken by the project,
110	including four-digit NAICS codes for all activities included in
111	the project.
112	(d) The business’s projected investment in the project.
113	(e) The total investment, from all sources, in the
114	project.
115	(f) The number of net new full-time equivalent jobs in
116	this state the business anticipates having created as of
117	December 31 of each year in the project and the average wage of
118	those jobs.
119	(g) The total number of full-time equivalent employees
120	currently employed by the business applicant in this state.
121	(h) The anticipated commencement date of the project.
122	(i) A detailed explanation of why the economic investment
123	mega fund incentive is needed to induce the business to expand
124	or locate in the state and how the incentive will close, or help
125	to close, the competitive gap impeding the business’ decision to
126	locate or expand in this state.
127	(j) An estimate of the proportion of the sales resulting
128	from the project that will be made outside this state.
129	(5) REVIEW QUALIFICATIONS.--To qualify for review by the
130	office, the business must, at a minimum, establish the following
131	to the satisfaction of Enterprise Florida, Inc., and the office:
132	(a) The jobs proposed to be created under the application
133	must pay an estimated annual average wage equaling at least 125
134	percent of the average private sector wage in the area where the
135	business is to be located or the statewide private sector
136	average wage. The office may waive this average wage requirement
137	at the request of Enterprise Florida, Inc. The wage requirement
138	may only be waived for a project located in a brownfield area
139	designated under s. 376.80, in a rural city or county as defined
140	in s. 288.106, or in an enterprise zone and only when the merits
141	of the individual project or the specific circumstances in the
142	community in relationship to the project warrant such action. If
143	Enterprise Florida, Inc., makes such a recommendation, the
144	recommendation must be transmitted in writing and the specific
145	justification for the waiver recommendation must be explained.
146	If the director elects to waive the wage requirement, the waiver
147	must be stated in writing and the reasons for granting the
148	waiver must be explained.
149	(b)1.a. The project must result in the creation of at
150	least 200 jobs at the business; or
151	b. If the project is a research and development facility,
152	a national or international headquarters, or is located in a
153	brownfield area designated under s. 376.80, in a rural city or
154	county as defined in s. 288.106, or in an enterprise zone, the
155	project must result in the creation of at least 100 jobs.
156	2. If the project is an expansion of an existing business,
157	the project must result in a net increase in employment of not
158	less than 10 percent. If the expansion is located in a
159	brownfield area designated under s. 376.80, a rural county or
160	city as defined in s. 288.106, or an enterprise zone, the 10
161	percent job creation requirement may be waived by the office at
162	the request of Enterprise Florida, Inc. If Enterprise Florida,
163	Inc. makes such a request, the request must be transmitted in
164	writing and the specific justification for the request must be
165	explained. If the director elects to grant such request, such
166	election must be stated in writing and the reason for granting
167	the request must be explained.
168	(c) The business activity or product for the applicant's
169	project is within an industry or industries that have been
170	designated as a target industry business under s. 288.106 or a
171	designated sector under s. 288.108.
172	(d)1. The cumulative investment in the project is at least
173	$25 million within a 3-year period; or
174	2. If the project is a research and development facility
175	or a national or international headquarters or is located in a
176	brownfield area designated under s. 376.80, in a rural county or
177	city as defined in s. 288.106, or in an enterprise zone, the
178	cumulative investment in the project must exceed $10 million
179	within a 3-year period.
180	(6) PROPOSAL EVALUATION AND RECOMMENDATIONS.--Enterprise
181	Florida, Inc., shall evaluate individual proposals for economic
182	investment mega fund incentive projects and forward
183	recommendations regarding the use of moneys in the fund for such
184	projects to the director. Such evaluation and recommendation
185	must include, but need not be limited to:
186	(a) A description of the type of facility, its operations,
187	and the associated product, service, or research and development
188	associated with the project.
189	(b) The number of full-time equivalent jobs that will be
190	created by the project, the total estimated average annual wages
191	of those jobs, and the types of business activities and jobs
192	stimulated by the investment.
193	(c) The cumulative investment to be dedicated to the
194	project within 3 years and the total investment expected in the
195	project if more than 3 years.
196	(d) A statement of any special impacts the project is
197	expected to stimulate in a particular business sector in the
198	state or regional economy or in the state's universities and
199	community colleges.
200	(e) A statement of the role the incentive is expected to
201	play in the decision of the applicant business to locate or
202	expand in this state.
203	(f) A recommendation of the amount of the economic
204	investment mega fund incentive that is needed to close a
205	competitive gap, including an explanation of why an incentive of
206	that amount is needed to induce the business to expand or locate
207	in this state.
208	(g) A discussion of the efforts and commitments made by
209	the local community in which the project is to be located to
210	induce the project location or expansion in light of local
211	resources and abilities.
212	(h) A recommendation for specific performance criteria the
213	business would be expected to achieve to receive any payments
214	from the fund and penalties or sanctions for failure to meet or
215	maintain performance conditions.
216	(7) AWARD NEGOTIATION; CONSIDERATIONS.--The office may, in
217	consultation with Enterprise Florida, Inc., negotiate the
218	proposed amount of an award for any eligible business. In
219	negotiating such award, the office shall consider the amount of
220	the incentive needed to close the competitive gap in conjunction
221	with other relevant applicant impact and cost information and
222	analysis as required in this section. Particular emphasis shall
223	be given to the potential for the project to stimulate
224	additional private investment and high-quality employment
225	opportunities in the area. No more than $150 million may be
226	awarded for any qualified business. To be considered for an
227	award over $100 million, an application must include the
228	creation of a minimum of 1000 jobs and a $750 million cumulative
229	investment within a 3-year period.
230	(8) AWARD APPROVAL OR DISAPPROVAL.--Upon receipt of the
231	evaluation and recommendation from Enterprise Florida, Inc., the
232	director shall recommend to the Governor approval or disapproval
233	of a project. In recommending approval of a project, the
234	director shall include proposed performance conditions that the
235	project must meet to obtain incentive funds and any other
236	conditions that must be met prior to the receipt of any
237	incentive funds. The Governor shall obtain written approval of
238	the President of the Senate and the Speaker of the House of
239	Representatives before giving approval for a project. The
240	Executive Office of the Governor shall recommend approval of a
241	project and release the funds upon approval of a budget
242	amendment by the Legislative Budget Commission.
243	(9) AWARD AGREEMENT.--Upon approval by the Executive
244	Office of the Governor, the director of the office shall issue a
245	letter certifying the business as a qualified business. The
246	office and the business shall enter into an agreement that sets
247	forth the conditions for payment of incentives. The agreement
248	must include the total amount of funds awarded; the performance
249	conditions that must be met to obtain the award or portions of
250	the award, including, but not limited to, net new employment in
251	the state, average salary, and total investment; demonstration
252	of a baseline of current service and a measure of enhanced
253	capability; the methodology for validating performance; the
254	schedule of payments; and sanctions for failure to meet
255	performance conditions.
256	(10) PERFORMANCE VALIDATION; REPORT.--Enterprise Florida,
257	Inc., shall assist the office in validating the qualified
258	business’s performance. At the conclusion of the economic
259	investment mega fund incentive award agreement, or its earlier
260	termination, Enterprise Florida, Inc. shall, within 90 days,
261	report the results of the economic investment mega fund
262	incentive award to the Governor, the President of the Senate,
263	and the Speaker of the House of Representatives.
264	(11) ADDITIONAL USES OF ECONOMIC INVESTMENT MEGA FUND
265	INCENTIVE ALLOCATIONS.--The office may allocate funds
266	appropriated for economic investment mega fund incentive awards
267	to fund economic development programs and activities pursuant to
268	s. 288.065, relating to the Rural Community Development
269	Revolving Loan Fund; s. 288.0655, relating to the Rural
270	Infrastructure Fund; s. 288.1088, relating to the Quick Action
271	Closing Fund; s. 288.1254, relating to the entertainment
272	industry financial incentive program; and s. 288.980, relating
273	to the military base retention grants program. These allocations
274	shall be approved in the same manner as provided in subsection
275	(8) and such approval of the Quick Action Closing Fund shall
276	satisfy the requirements of s. 288.1088(3)(b).
277	Section 2. Paragraph (b) of subsection (3) of section
278	288.1088, Florida Statutes, is amended to read:
279	288.1088 Quick Action Closing Fund.--
280	(3)
281	(b) Upon receipt of the evaluation and recommendation from
282	Enterprise Florida, Inc., the director shall recommend approval
283	or disapproval of a project for receipt of funds from the Quick
284	Action Closing Fund to the Governor. In recommending a project,
285	the director shall include proposed performance conditions that
286	the project must meet to obtain incentive funds. The Governor
287	shall consult with the President of the Senate and the Speaker
288	of the House of Representatives before giving final approval for
289	a project. The Executive Office of the Governor shall recommend
290	approval of a project and release of funds pursuant to the
291	legislative consultation and review requirements set forth in s.
292	216.177. The recommendation must include proposed performance
293	conditions the project must meet to obtain funds.
294	Section 3. This act shall take effect upon becoming a law.