HB 0583

CS

CHAMBER ACTION

1	The Committee on Commerce recommends the following:
2
3	Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to the tax refund program for qualified
7	defense contractors and qualified target industry
8	businesses; amending s. 288.095, F.S.; requiring the
9	Office of Tourism, Trade, and Economic Development to pay
10	claims for tax refunds in the order approved; requiring
11	the office to pay certain tax refunds from subsequent year
12	appropriations under certain circumstances; requiring the
13	office to notify legislative appropriations committees of
14	certain funds shortfalls; requiring Enterprise Florida,
15	Inc., to report on the efforts of the Office of Tourism,
16	Trade, and Economic Development to amend tax refund
17	agreements; amending s. 288.1045, F.S.; defining the term
18	"jobs" to include new and retained jobs; requiring
19	applications for certification to include the number of
20	jobs retained; providing that new applicants may not be
21	certified for the tax refund program for qualified defense
22	contractors after June 30, 2009; specifying that tax
23	refund agreements existing on that date continue in
24	effect; amending s. 288.106, F.S.; prohibiting
25	certification of applicants after a certain date;
26	providing for continued effect of certain tax refund
27	agreements; deleting an expiration date; requiring the
28	Office of Tourism, Trade, and Economic Development to
29	attempt to amend certain tax refund agreements, to
30	conform; providing an effective date.
31
32	Be It Enacted by the Legislature of the State of Florida:
33
34	Section 1.  Paragraphs (b) and (c) of subsection (3) of
35	section 288.095, Florida Statutes, are amended to read:
36	288.095  Economic Development Trust Fund.--
37	(3)
38	(b)  The total amount of tax refund claims approved for
39	payment by the Office of Tourism, Trade, and Economic
40	Development based on actual project performance may not exceed
41	the amount appropriated to the Economic Development Incentives
42	Account for such purposes for the fiscal year. Claims for tax
43	refunds under ss. 288.1045 and 288.106 shall be paid in the
44	order the claims are approved by the Office of Tourism, Trade,
45	and Economic Development. In the event the Legislature does not
46	appropriate an amount sufficient to satisfy the estimates by the
47	office for tax refunds under ss. 288.1045 and 288.106 in a
48	fiscal year, the Office of Tourism, Trade, and Economic
49	Development shall pay the tax refunds from the appropriation for
50	the following fiscal year. By March 1 of each year, the Office
51	of Tourism, Trade, and Economic Development shall notify the
52	legislative appropriations committees of any anticipated
53	shortfall in the amount of funds needed to satisfy claims for
54	tax refunds from the appropriation for the current fiscal year,
55	not later than July 15 of such year, determine the proportion of
56	each refund claim which shall be paid by dividing the amount
57	appropriated for tax refunds for the fiscal year by the
58	estimated total of refund claims for the fiscal year. The amount
59	of each claim for a tax refund shall be multiplied by the
60	resulting quotient. If, after the payment of all such refund
61	claims, funds remain in the Economic Development Incentives
62	Account for tax refunds, the office shall recalculate the
63	proportion for each refund claim and adjust the amount of each
64	claim accordingly.
65	(c)  By December 31 of each year, Enterprise Florida, Inc.,
66	shall submit a complete and detailed report to the Governor, the
67	President of the Senate, the Speaker of the House of
68	Representatives, and the director of the Office of Tourism,
69	Trade, and Economic Development of all applications received,
70	recommendations made to the Office of Tourism, Trade, and
71	Economic Development, final decisions issued, tax refund
72	agreements executed, and tax refunds paid or other payments made
73	under all programs funded out of the Economic Development
74	Incentives Account, including analyses of benefits and costs,
75	types of projects supported, and employment and investment
76	created. Enterprise Florida, Inc., shall also include a separate
77	analysis of the impact of such tax refunds on state enterprise
78	zones designated pursuant to s. 290.0065, rural communities,
79	brownfield areas, and distressed urban communities. The report
80	must discuss whether the authority and moneys appropriated by
81	the Legislature to the Economic Development Incentives Account
82	were managed and expended in a prudent, fiducially sound manner.
83	The report shall also discuss the efforts made by the Office of
84	Tourism, Trade, and Economic Development to amend tax refund
85	agreements to require tax refund claims to be submitted by
86	January 31 for the net new full-time equivalent Florida jobs as
87	of December 31 of the preceding calendar year. The Office of
88	Tourism, Trade, and Economic Development shall assist Enterprise
89	Florida, Inc., in the collection of data related to business
90	performance and incentive payments.
91	Section 2.  Paragraph (g) of subsection (1), paragraphs
92	(b), (c), and (d) of subsection (3), and subsection (7) of
93	section 288.1045, Florida Statutes, are amended to read:
94	288.1045  Qualified defense contractor tax refund
95	program.--
96	(1)  DEFINITIONS.--As used in this section:
97	(g)  "Jobs" means full-time equivalent positions,
98	consistent with the use of such terms by the Agency for
99	Workforce Innovation for the purpose of unemployment
100	compensation tax, created or retained as a direct result of
101	resulting directly from a project in this state. This number
102	does not include temporary construction jobs involved with the
103	construction of facilities for the project.
104	(3)  APPLICATION PROCESS; REQUIREMENTS; AGENCY
105	DETERMINATION.--
106	(b)  Applications for certification based on the
107	consolidation of a Department of Defense contract or a new
108	Department of Defense contract must be submitted to the office
109	as prescribed by the office and must include, but are not
110	limited to, the following information:
111	1.  The applicant's federal employer identification number,
112	the applicant's Florida sales tax registration number, and a
113	notarized signature of an officer of the applicant.
114	2.  The permanent location of the manufacturing,
115	assembling, fabricating, research, development, or design
116	facility in this state at which the project is or is to be
117	located.
118	3.  The Department of Defense contract numbers of the
119	contract to be consolidated, the new Department of Defense
120	contract number, or the "RFP" number of a proposed Department of
121	Defense contract.
122	4.  The date the contract was executed or is expected to be
123	executed, and the date the contract is due to expire or is
124	expected to expire.
125	5.  The commencement date for project operations under the
126	contract in this state.
127	6.  The number of net new full-time equivalent Florida jobs
128	included in the project as of December 31 of each year and the
129	average wage of such jobs.
130	7.  The number of full-time equivalent Florida jobs to be
131	retained by the project.
132	8.7.  The total number of full-time equivalent employees
133	employed by the applicant in this state.
134	9.8.  The percentage of the applicant's gross receipts
135	derived from Department of Defense contracts during the 5
136	taxable years immediately preceding the date the application is
137	submitted.
138	10.9.  The amount of:
139	a.  Taxes on sales, use, and other transactions paid
140	pursuant to chapter 212;
141	b.  Corporate income taxes paid pursuant to chapter 220;
142	c.  Intangible personal property taxes paid pursuant to
143	chapter 199;
144	d.  Emergency excise taxes paid pursuant to chapter 221;
145	e.  Excise taxes paid on documents pursuant to chapter 201;
146	and
147	f.  Ad valorem taxes paid
148
149	during the 5 fiscal years immediately preceding the date of the
150	application, and the projected amounts of such taxes to be due
151	in the 3 fiscal years immediately following the date of the
152	application.
153	11.10.  The estimated amount of tax refunds to be claimed
154	for each fiscal year.
155	12.11.  A brief statement concerning the applicant's need
156	for tax refunds, and the proposed uses of such refunds by the
157	applicant.
158	13.12.  A resolution adopted by the county commissioners of
159	the county in which the project will be located, which
160	recommends the applicant be approved as a qualified applicant,
161	and which indicates that the necessary commitments of local
162	financial support for the applicant exist. Prior to the adoption
163	of the resolution, the county commission may review the proposed
164	public or private sources of such support and determine whether
165	the proposed sources of local financial support can be provided
166	or, for any applicant whose project is located in a county
167	designated by the Rural Economic Development Initiative, a
168	resolution adopted by the county commissioners of such county
169	requesting that the applicant's project be exempt from the local
170	financial support requirement.
171	14.13.  Any additional information requested by the office.
172	(c)  Applications for certification based on the conversion
173	of defense production jobs to nondefense production jobs must be
174	submitted to the office as prescribed by the office and must
175	include, but are not limited to, the following information:
176	1.  The applicant's federal employer identification number,
177	the applicant's Florida sales tax registration number, and a
178	notarized signature of an officer of the applicant.
179	2.  The permanent location of the manufacturing,
180	assembling, fabricating, research, development, or design
181	facility in this state at which the project is or is to be
182	located.
183	3.  The Department of Defense contract numbers of the
184	contract under which the defense production jobs will be
185	converted to nondefense production jobs.
186	4.  The date the contract was executed, and the date the
187	contract is due to expire or is expected to expire, or was
188	canceled.
189	5.  The commencement date for the nondefense production
190	operations in this state.
191	6.  The number of net new full-time equivalent Florida jobs
192	included in the nondefense production project as of December 31
193	of each year and the average wage of such jobs.
194	7.  The number of full-time equivalent Florida jobs to be
195	retained by the project.
196	8.7.  The total number of full-time equivalent employees
197	employed by the applicant in this state.
198	9.8.  The percentage of the applicant's gross receipts
199	derived from Department of Defense contracts during the 5
200	taxable years immediately preceding the date the application is
201	submitted.
202	10.9.  The amount of:
203	a.  Taxes on sales, use, and other transactions paid
204	pursuant to chapter 212;
205	b.  Corporate income taxes paid pursuant to chapter 220;
206	c.  Intangible personal property taxes paid pursuant to
207	chapter 199;
208	d.  Emergency excise taxes paid pursuant to chapter 221;
209	e.  Excise taxes paid on documents pursuant to chapter 201;
210	and
211	f.  Ad valorem taxes paid
212
213	during the 5 fiscal years immediately preceding the date of the
214	application, and the projected amounts of such taxes to be due
215	in the 3 fiscal years immediately following the date of the
216	application.
217	11.10.  The estimated amount of tax refunds to be claimed
218	for each fiscal year.
219	12.11.  A brief statement concerning the applicant's need
220	for tax refunds, and the proposed uses of such refunds by the
221	applicant.
222	13.12.  A resolution adopted by the county commissioners of
223	the county in which the project will be located, which
224	recommends the applicant be approved as a qualified applicant,
225	and which indicates that the necessary commitments of local
226	financial support for the applicant exist. Prior to the adoption
227	of the resolution, the county commission may review the proposed
228	public or private sources of such support and determine whether
229	the proposed sources of local financial support can be provided
230	or, for any applicant whose project is located in a county
231	designated by the Rural Economic Development Initiative, a
232	resolution adopted by the county commissioners of such county
233	requesting that the applicant's project be exempt from the local
234	financial support requirement.
235	14.13.  Any additional information requested by the office.
236	(d)  Applications for certification based on a contract for
237	reuse of a defense-related facility must be submitted to the
238	office as prescribed by the office and must include, but are not
239	limited to, the following information:
240	1.  The applicant's Florida sales tax registration number
241	and a notarized signature of an officer of the applicant.
242	2.  The permanent location of the manufacturing,
243	assembling, fabricating, research, development, or design
244	facility in this state at which the project is or is to be
245	located.
246	3.  The business entity holding a valid Department of
247	Defense contract or branch of the Armed Forces of the United
248	States that previously occupied the facility, and the date such
249	entity last occupied the facility.
250	4.  A copy of the contract to reuse the facility, or such
251	alternative proof as may be prescribed by the office that the
252	applicant is seeking to contract for the reuse of such facility.
253	5.  The date the contract to reuse the facility was
254	executed or is expected to be executed, and the date the
255	contract is due to expire or is expected to expire.
256	6.  The commencement date for project operations under the
257	contract in this state.
258	7.  The number of full-time equivalent Florida jobs to be
259	retained by the project.
260	8.7.  The number of net new full-time equivalent Florida
261	jobs included in the project as of December 31 of each year and
262	the average wage of such jobs.
263	9.8.  The total number of full-time equivalent employees
264	employed by the applicant in this state.
265	10.9.  The amount of:
266	a.  Taxes on sales, use, and other transactions paid
267	pursuant to chapter 212.
268	b.  Corporate income taxes paid pursuant to chapter 220.
269	c.  Intangible personal property taxes paid pursuant to
270	chapter 199.
271	d.  Emergency excise taxes paid pursuant to chapter 221.
272	e.  Excise taxes paid on documents pursuant to chapter 201.
273	f.  Ad valorem taxes paid during the 5 fiscal years
274	immediately preceding the date of the application, and the
275	projected amounts of such taxes to be due in the 3 fiscal years
276	immediately following the date of the application.
277	11.10.  The estimated amount of tax refunds to be claimed
278	for each fiscal year.
279	12.11.  A brief statement concerning the applicant's need
280	for tax refunds, and the proposed uses of such refunds by the
281	applicant.
282	13.12.  A resolution adopted by the county commissioners of
283	the county in which the project will be located, which
284	recommends the applicant be approved as a qualified applicant,
285	and which indicates that the necessary commitments of local
286	financial support for the applicant exist. Prior to the adoption
287	of the resolution, the county commission may review the proposed
288	public or private sources of such support and determine whether
289	the proposed sources of local financial support can be provided
290	or, for any applicant whose project is located in a county
291	designated by the Rural Economic Development Initiative, a
292	resolution adopted by the county commissioners of such county
293	requesting that the applicant's project be exempt from the local
294	financial support requirement.
295	14.13.  Any additional information requested by the office.
296	(7)  EXPIRATION.--An applicant may not be certified as
297	qualified under this section after June 30, 2009 2004. However,
298	a tax refund agreement existing on that date shall continue in
299	effect in accordance with its terms.
300	Section 3.  Subsection (7) of section 288.106, Florida
301	Statutes, is amended to read:
302	288.106  Tax refund program for qualified target industry
303	businesses.--
304	(7)  CERTIFICATION EXPIRATION; CONTINUED EFFECT.--An
305	applicant may not be certified as qualified under this section
306	after June 30, 2009. However, a tax refund agreement existing on
307	that date shall continue in effect in accordance with its terms
308	This section expires June 30, 2004.
309	Section 4.  The Office of Tourism, Trade, and Economic
310	Development shall attempt to amend existing tax refund
311	agreements created under s. 288.106, Florida Statutes, to
312	require tax refund claims to be submitted by January 31 for the
313	net new full-time equivalent Florida jobs as of December 31 of
314	the preceding calendar year.
315	Section 5.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.