HB 1373

1
A bill to be entitled
2An act relating to the qualified defense contractor tax
3refund program; amending s. 288.1045, F.S.; revising
4definitions to include space flight businesses and space
5flight contracts; specifying a methodology and amounts for
6tax refund payments to qualified defense contractor
7businesses; revising provisions authorizing qualified
8applicants to receive refunds of certain taxes; revising
9application process requirements to include space flight
10businesses and contracts; revising information
11requirements for applications for certain qualified
12applicant certifications; providing employment
13requirements for space flight business contracts;
14specifying required information for applications for
15certification under space flight business contracts;
16including space flight businesses under provisions
17authorizing annual claims for refund; revising limitations
18on payments of tax refunds; revising certain required
19reductions of amounts of tax refunds; deleting a reporting
20requirement of tax refunds paid and use of appropriations
21expended; extending an expiration date; amending ss.
2214.2015 and 213.053, F.S.; conforming program references;
23providing an effective date.
24
25Be It Enacted by the Legislature of the State of Florida:
26
27     Section 1.  Subsection (1), paragraphs (b) and (f) of
28subsection (2), subsections (3), (4), and (5), paragraphs (d)
29and (e) of subsection (6), and subsection (8) of section
30288.1045, Florida Statutes, are amended to read:
31     288.1045  Qualified defense contractor and space flight
32business tax refund program.--
33     (1)  DEFINITIONS.--As used in this section:
34     (a)(c)  "Applicant" means any business entity that holds a
35valid Department of Defense contract or space flight business
36contract, or any business entity that is a subcontractor under a
37valid Department of Defense contract or space flight business
38contract, or any business entity that holds a valid contract for
39the reuse of a defense-related facility, including all members
40of an affiliated group of corporations as defined in s.
41220.03(1)(b).
42     (b)  "Average wage in the area" means the average of all
43wages and salaries in the state, the county, or in the standard
44metropolitan area in which the business unit is located.
45     (c)(n)  "Business unit" means an employing unit, as defined
46in s. 443.036, that is registered with the Agency for Workforce
47Innovation for unemployment compensation purposes or means a
48subcategory or division of an employing unit that is accepted by
49the Agency for Workforce Innovation as a reporting unit.
50     (d)(a)  "Consolidation of a Department of Defense contract"
51means the consolidation of one or more of an applicant's
52facilities under one or more Department of Defense contracts,
53either from outside this state or from inside and outside this
54state, into one or more of the applicant's facilities inside
55this state.
56     (e)  "Consolidation of a space flight business contract"
57means the consolidation of one or more of an applicant's
58facilities under one or more space flight business contracts,
59from outside this state or from inside and outside this state,
60into one or more of the applicant's facilities inside this
61state.
62     (f)(p)  "Contract for reuse of a defense-related facility"
63means a contract with a duration of 2 or more years for the use
64of a facility for manufacturing, assembling, fabricating,
65research, development, or design of tangible personal property,
66but excluding any contract to provide goods, improvements to
67real or tangible property, or services directly to or for any
68particular military base or installation in this state. Such
69facility must be located within a port, as defined in s. 313.21,
70and have been occupied by a business entity that held a valid
71Department of Defense contract or occupied by any branch of the
72Armed Forces of the United States, within 1 year of any contract
73being executed for the reuse of such facility. A contract for
74reuse of a defense-related facility may not include any contract
75for reuse of such facility for any Department of Defense
76contract for manufacturing, assembling, fabricating, research,
77development, or design.
78     (g)(e)  "Department of Defense contract" means a
79competitively bid Department of Defense contract or subcontract
80or a competitively bid federal agency contract or subcontract
81issued on behalf of the Department of Defense for manufacturing,
82assembling, fabricating, research, development, or design with a
83duration of 2 or more years, but excluding any contract or
84subcontract to provide goods, improvements to real or tangible
85property, or services directly to or for any particular military
86base or installation in this state. The term includes contracts
87or subcontracts for products or services for military use or
88homeland security which contracts or subcontracts are approved
89by the United States Department of Defense, the United States
90Department of State, or the United States Department of Homeland
91Security.
92     (h)(k)  "Director" means the director of the Office of
93Tourism, Trade, and Economic Development.
94     (i)(m)  "Fiscal year" means the fiscal year of the state.
95     (j)(g)  "Jobs" means full-time equivalent positions,
96consistent with the use of such terms by the Agency for
97Workforce Innovation for the purpose of unemployment
98compensation tax, created or retained as a direct result of a
99project in this state. This number does not include temporary
100construction jobs involved with the construction of facilities
101for the project.
102     (k)(o)  "Local financial support" means funding from local
103sources, public or private, which is paid to the Economic
104Development Trust Fund and which is equal to 20 percent of the
105annual tax refund for a qualified applicant. Local financial
106support may include excess payments made to a utility company
107under a designated program to allow decreases in service by the
108utility company under conditions, regardless of when application
109is made. A qualified applicant may not provide, directly or
110indirectly, more than 5 percent of such funding in any fiscal
111year. The sources of such funding may not include, directly or
112indirectly, state funds appropriated from the General Revenue
113Fund or any state trust fund, excluding tax revenues shared with
114local governments pursuant to law.
115     (l)(q)  "Local financial support exemption option" means
116the option to exercise an exemption from the local financial
117support requirement available to any applicant whose project is
118located in a county designated by the Rural Economic Development
119Initiative, if the county commissioners of the county in which
120the project will be located adopt a resolution requesting that
121the applicant's project be exempt from the local financial
122support requirement. Any applicant that exercises this option is
123not eligible for more than 80 percent of the total tax refunds
124allowed such applicant under this section.
125     (m)(f)  "New Department of Defense contract" means a
126Department of Defense contract entered into after the date
127application for certification as a qualified applicant is made
128and after January 1, 1994.
129     (n)  "New space flight business contract" means a space
130flight business contract entered into after an application for
131certification as a qualified applicant is made after January 1,
1322007.
133     (o)(h)  "Nondefense production jobs" means employment
134exclusively for activities that, directly or indirectly, are
135unrelated to the Department of Defense.
136     (p)(d)  "Office" means the Office of Tourism, Trade, and
137Economic Development.
138     (q)(i)  "Project" means any business undertaking in this
139state under a new Department of Defense contract, consolidation
140of a Department of Defense contract, new space flight business
141contract, consolidation of a space flight business contract, or
142conversion of defense production jobs over to nondefense
143production jobs or reuse of defense-related facilities.
144     (r)(j)  "Qualified applicant" means an applicant that has
145been approved by the director to be eligible for tax refunds
146pursuant to this section.
147     (s)  "Space flight business" means the manufacturing,
148processing, or assembly of space flight technology products,
149space flight facilities, space flight propulsion systems, or
150space vehicles, satellites, or stations of any kind possessing
151the capability for space flight, as defined by s. 212.02(23), or
152components thereof, and includes, in supporting space flight,
153vehicle launch activities, flight operations, ground control or
154ground support, and all administrative activities directly
155related to such activities. The term does not include products
156that are designed or manufactured for general commercial
157aviation or other uses even if those products may also serve an
158incidental use in space flight applications.
159     (t)  "Space flight business contract" means a competitively
160bid federal agency contract, federal agency subcontract, an
161awarded commercial contract, or an awarded commercial
162subcontract for space flight business with a duration of 2 or
163more years.
164     (u)(l)  "Taxable year" means the same as in s.
165220.03(1)(y).
166     (2)  GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.--
167     (b)  Upon approval by the director, a qualified defense
168contractor business shall be allowed tax refund payments equal
169to $3,000 times the number of jobs specified in the tax refund
170agreement under subparagraph (4)(a)1. or equal to $6,000 times
171the number of jobs if the project is located in a rural county
172or an enterprise zone. Further, a qualified defense contractor
173business shall be allowed additional tax refund payments equal
174to $1,000 times the number of jobs specified in the tax refund
175agreement under subparagraph (4)(a)1. if such jobs pay an annual
176average wage of at least 150 percent of the average private
177sector wage in the area or equal to $2,000 times the number of
178jobs if such jobs pay an annual average wage of at least 200
179percent of the average private sector wage in the area. A
180qualified applicant may not be qualified for any project to
181receive more than $5,000 times the number of jobs provided in
182the tax refund agreement pursuant to subparagraph (4)(a)1. A
183qualified applicant may not receive refunds of more than 25
184percent of the total tax refunds provided in the tax refund
185agreement pursuant to subparagraph (4)(a)1. in any fiscal year,
186provided that no qualified applicant may receive more than $2.5
187million in tax refunds pursuant to this section in any fiscal
188year.
189     (f)  After entering into a tax refund agreement pursuant to
190subsection (4), a qualified applicant may:
191     1.  Receive refunds from the account for corporate income
192taxes due and paid pursuant to chapter 220 by that business
193beginning with the first taxable year of the business which
194begins after entering into the agreement.
195     2.  Receive refunds from the account Economic Development
196Trust Fund for the following taxes due and paid by that business
197the qualified applicant beginning with the applicant's first
198taxable year that begins after entering into the agreement:
199     a.1.  Taxes on sales, use, and other transactions paid
200pursuant to chapter 212.
201     2.  Corporate income taxes paid pursuant to chapter 220.
202     b.3.  Intangible personal property taxes paid pursuant to
203chapter 199.
204     4.  Emergency excise taxes paid pursuant to chapter 221.
205     c.5.  Excise taxes paid on documents pursuant to chapter
206201.
207     d.6.  Ad valorem taxes paid, as defined in s. 220.03(1)(a)
208on June 1, 1996.
209     e.7.  State communications services taxes administered
210under chapter 202. This provision does not apply to the gross
211receipts tax imposed under chapter 203 and administered under
212chapter 202 or the local communications services tax authorized
213under s. 202.19.
214
215However, a qualified applicant may not receive a tax refund
216pursuant to this section for any amount of credit, refund, or
217exemption granted such contractor for any of such taxes. If a
218refund for such taxes is provided by the office, which taxes are
219subsequently adjusted by the application of any credit, refund,
220or exemption granted to the qualified applicant other than that
221provided in this section, the qualified applicant shall
222reimburse the Economic Development Trust Fund for the amount of
223such credit, refund, or exemption. A qualified applicant must
224notify and tender payment to the office within 20 days after
225receiving a credit, refund, or exemption, other than that
226provided in this section. The addition of communications
227services taxes administered under chapter 202 is remedial in
228nature and retroactive to October 1, 2001. The office may make
229supplemental tax refund payments to allow for tax refunds for
230communications services taxes paid by an eligible qualified
231defense contractor after October 1, 2001.
232     (3)  APPLICATION PROCESS; REQUIREMENTS; AGENCY
233DETERMINATION.--
234     (a)  To apply for certification as a qualified applicant
235pursuant to this section, an applicant must file an application
236with the office which satisfies the requirements of paragraphs
237(b) and (e), paragraphs (c) and (e), or paragraphs (d) and (e),
238or paragraphs (e) and (k). An applicant may not apply for
239certification pursuant to this section after a proposal has been
240submitted for a new Department of Defense contract, after the
241applicant has made the decision to consolidate an existing
242Department of Defense contract in this state for which such
243applicant is seeking certification, after a proposal has been
244submitted for a new space flight business contract in this
245state, after the applicant has made the decision to consolidate
246an existing space flight business contract in this state for
247which such applicant is seeking certification, or after the
248applicant has made the decision to convert defense production
249jobs to nondefense production jobs for which such applicant is
250seeking certification.
251     (b)  Applications for certification based on the
252consolidation of a Department of Defense contract or a new
253Department of Defense contract must be submitted to the office
254as prescribed by the office and must include, but are not
255limited to, the following information:
256     1.  The applicant's federal employer identification number,
257the applicant's Florida sales tax registration number, and a
258notarized signature of an officer of the applicant.
259     2.  The permanent location of the manufacturing,
260assembling, fabricating, research, development, or design
261facility in this state at which the project is or is to be
262located.
263     3.  The Department of Defense contract numbers of the
264contract to be consolidated, the new Department of Defense
265contract number, or the "RFP" number of a proposed Department of
266Defense contract.
267     4.  The date the contract was executed or is expected to be
268executed, and the date the contract is due to expire or is
269expected to expire.
270     5.  The commencement date for project operations under the
271contract in this state.
272     6.  The number of net new full-time equivalent Florida jobs
273included in the project as of December 31 of each year and the
274average wage of such jobs.
275     7.  The total number of full-time equivalent employees
276employed by the applicant in this state.
277     8.  The percentage of the applicant's gross receipts
278derived from Department of Defense contracts during the 5
279taxable years immediately preceding the date the application is
280submitted.
281     9.  The number of full-time equivalent jobs in this state
282to be retained by the project.
283     10.  The estimated amount of tax refunds to be claimed for
284each fiscal year.
285     10.11.  A brief statement concerning the applicant's need
286for tax refunds, and the proposed uses of such refunds by the
287applicant.
288     11.12.  A resolution adopted by the governing board county
289commissioners of the county or municipality in which the project
290will be located, which recommends the applicant be approved as a
291qualified applicant, and which indicates that the necessary
292commitments of local financial support for the applicant exist.
293Prior to the adoption of the resolution, the county commission
294may review the proposed public or private sources of such
295support and determine whether the proposed sources of local
296financial support can be provided or, for any applicant whose
297project is located in a county designated by the Rural Economic
298Development Initiative, a resolution adopted by the county
299commissioners of such county requesting that the applicant's
300project be exempt from the local financial support requirement.
301     12.13.  Any additional information requested by the office.
302     (c)  Applications for certification based on the conversion
303of defense production jobs to nondefense production jobs must be
304submitted to the office as prescribed by the office and must
305include, but are not limited to, the following information:
306     1.  The applicant's federal employer identification number,
307the applicant's Florida sales tax registration number, and a
308notarized signature of an officer of the applicant.
309     2.  The permanent location of the manufacturing,
310assembling, fabricating, research, development, or design
311facility in this state at which the project is or is to be
312located.
313     3.  The Department of Defense contract numbers of the
314contract under which the defense production jobs will be
315converted to nondefense production jobs.
316     4.  The date the contract was executed, and the date the
317contract is due to expire or is expected to expire, or was
318canceled.
319     5.  The commencement date for the nondefense production
320operations in this state.
321     6.  The number of net new full-time equivalent Florida jobs
322included in the nondefense production project as of December 31
323of each year and the average wage of such jobs.
324     7.  The total number of full-time equivalent employees
325employed by the applicant in this state.
326     8.  The percentage of the applicant's gross receipts
327derived from Department of Defense contracts during the 5
328taxable years immediately preceding the date the application is
329submitted.
330     9.  The number of full-time equivalent jobs in this state
331to be retained by the project.
332     10.  The estimated amount of tax refunds to be claimed for
333each fiscal year.
334     10.11.  A brief statement concerning the applicant's need
335for tax refunds, and the proposed uses of such refunds by the
336applicant.
337     11.12.  A resolution adopted by the governing board county
338commissioners of the county or municipality in which the project
339will be located, which recommends the applicant be approved as a
340qualified applicant, and which indicates that the necessary
341commitments of local financial support for the applicant exist.
342Prior to the adoption of the resolution, the county commission
343may review the proposed public or private sources of such
344support and determine whether the proposed sources of local
345financial support can be provided or, for any applicant whose
346project is located in a county designated by the Rural Economic
347Development Initiative, a resolution adopted by the county
348commissioners of such county requesting that the applicant's
349project be exempt from the local financial support requirement.
350     12.13.  Any additional information requested by the office.
351     (d)  Applications for certification based on a contract for
352reuse of a defense-related facility must be submitted to the
353office as prescribed by the office and must include, but are not
354limited to, the following information:
355     1.  The applicant's Florida sales tax registration number
356and a notarized signature of an officer of the applicant.
357     2.  The permanent location of the manufacturing,
358assembling, fabricating, research, development, or design
359facility in this state at which the project is or is to be
360located.
361     3.  The business entity holding a valid Department of
362Defense contract or branch of the Armed Forces of the United
363States that previously occupied the facility, and the date such
364entity last occupied the facility.
365     4.  A copy of the contract to reuse the facility, or such
366alternative proof as may be prescribed by the office that the
367applicant is seeking to contract for the reuse of such facility.
368     5.  The date the contract to reuse the facility was
369executed or is expected to be executed, and the date the
370contract is due to expire or is expected to expire.
371     6.  The commencement date for project operations under the
372contract in this state.
373     7.  The number of net new full-time equivalent Florida jobs
374included in the project as of December 31 of each year and the
375average wage of such jobs.
376     8.  The total number of full-time equivalent employees
377employed by the applicant in this state.
378     9.  The number of full-time equivalent jobs in this state
379to be retained by the project.
380     10.  The estimated amount of tax refunds to be claimed for
381each fiscal year.
382     10.11.  A brief statement concerning the applicant's need
383for tax refunds, and the proposed uses of such refunds by the
384applicant.
385     11.12.  A resolution adopted by the governing board county
386commissioners of the county or municipality in which the project
387will be located, which recommends the applicant be approved as a
388qualified applicant, and which indicates that the necessary
389commitments of local financial support for the applicant exist.
390Prior to the adoption of the resolution, the county commission
391may review the proposed public or private sources of such
392support and determine whether the proposed sources of local
393financial support can be provided or, for any applicant whose
394project is located in a county designated by the Rural Economic
395Development Initiative, a resolution adopted by the county
396commissioners of such county requesting that the applicant's
397project be exempt from the local financial support requirement.
398     12.13.  Any additional information requested by the office.
399     (e)  To qualify for review by the office, the application
400of an applicant must, at a minimum, establish the following to
401the satisfaction of the office:
402     1.  The jobs proposed to be provided under the application,
403pursuant to subparagraph (b)6., or subparagraph (c)6., or
404subparagraph (k)6., must pay an estimated annual average wage
405equaling at least 115 percent of the average wage in the area
406where the project is to be located.
407     2.  The consolidation of a Department of Defense contract
408must result in a net increase of at least 25 percent in the
409number of jobs at the applicant's facilities in this state or
410the addition of at least 80 jobs at the applicant's facilities
411in this state.
412     3.  The conversion of defense production jobs to nondefense
413production jobs must result in net increases in nondefense
414employment at the applicant's facilities in this state.
415     4.  The Department of Defense contract or the space flight
416business contract cannot allow the business to include the costs
417of relocation or retooling in its base as allowable costs under
418a cost-plus, or similar, contract.
419     5.  A business unit of the applicant must have derived not
420less than 60 percent of its gross receipts in this state from
421Department of Defense contracts or space flight business
422contracts over the applicant's last fiscal year, and must have
423derived not less than an average of 60 percent of its gross
424receipts in this state from Department of Defense contracts over
425the 5 years preceding the date an application is submitted
426pursuant to this section. This subparagraph does not apply to
427any application for certification based on a contract for reuse
428of a defense-related facility.
429     6.  The reuse of a defense-related facility must result in
430the creation of at least 100 jobs at such facility.
431     7.  A new space flight business contract or the
432consolidation of a space flight business contract must result in
433net increases in space flight business employment at the
434applicant's facilities in this state.
435     (f)  Each application meeting the requirements of
436paragraphs (b) and (e), paragraphs (c) and (e), or paragraphs
437(d) and (e), or paragraphs (e) and (k) must be submitted to the
438office for a determination of eligibility. The office shall
439review and, evaluate, and score each application based on, but
440not limited to, the following criteria:
441     1.  Expected contributions to the state strategic economic
442development plan adopted by Enterprise Florida, Inc., taking
443into account the extent to which the project contributes to the
444state's high-technology base, and the long-term impact of the
445project and the applicant on the state's economy.
446     2.  The economic benefit of the jobs created or retained by
447the project in this state, taking into account the cost and
448average wage of each job created or retained, and the potential
449risk to existing jobs.
450     3.  The amount of capital investment to be made by the
451applicant in this state.
452     4.  The local commitment and support for the project and
453applicant.
454     5.  The impact of the project on the local community,
455taking into account the unemployment rate for the county where
456the project will be located.
457     6.  The dependence of the local community on the defense
458industry or space flight business.
459     7.  The impact of any tax refunds granted pursuant to this
460section on the viability of the project and the probability that
461the project will occur in this state if such tax refunds are
462granted to the applicant, taking into account the expected long-
463term commitment of the applicant to economic growth and
464employment in this state.
465     8.  The length of the project, or the expected long-term
466commitment to this state resulting from the project.
467     (g)  The office shall forward its written findings and
468evaluation on each application meeting the requirements of
469paragraphs (b) and (e), paragraphs (c) and (e), or paragraphs
470(d) and (e), or paragraphs (e) and (k) to the director within 60
471calendar days after receipt of a complete application. The
472office shall notify each applicant when its application is
473complete, and when the 60-day period begins. In its written
474report to the director, the office shall specifically address
475each of the factors specified in paragraph (f), and shall make a
476specific assessment with respect to the minimum requirements
477established in paragraph (e). The office shall include in its
478report projections of the tax refunds the applicant would be
479eligible to receive in each fiscal year based on the creation
480and maintenance of the net new Florida jobs specified in
481subparagraph (b)6., subparagraph (c)6., or subparagraph (d)7.,
482or subparagraph (k)6. as of December 31 of the preceding state
483fiscal year.
484     (h)  Within 30 days after receipt of the office's findings
485and evaluation, the director shall issue a letter of
486certification which either approves or disapproves an
487application. The decision must be in writing and provide the
488justifications for either approval or disapproval. If
489appropriate, the director shall enter into a written agreement
490with the qualified applicant pursuant to subsection (4).
491     (i)  The director may not certify any applicant as a
492qualified applicant when the value of tax refunds to be included
493in that letter of certification exceeds the available amount of
494authority to certify new businesses as determined in s.
495288.095(3). A letter of certification that approves an
496application must specify the maximum amount of a tax refund that
497is to be available to the contractor for each fiscal year and
498the total amount of tax refunds for all fiscal years.
499     (j)  This section does not create a presumption that an
500applicant should receive any tax refunds under this section.
501     (k)  Applications for certification based upon a new space
502flight business contract or the consolidation of a space flight
503business contract must be submitted to the office as prescribed
504by the office and must include, but are not limited to, the
505following information:
506     1.  The applicant's federal employer identification number,
507the applicant's Florida sales tax registration number, and a
508signature of an officer of the applicant.
509     2.  The permanent location of the space flight business
510facility in this state where the project is or will be located.
511     3.  The new space flight business contract number, the
512space flight business contract numbers of the contract to be
513consolidated, or the request-for-proposal number of a proposed
514space flight business contract.
515     4.  The date the contract was executed and the date the
516contract is due to expire, is expected to expire, or was
517canceled.
518     5.  The commencement date for project operations under the
519contract in this state.
520     6.  The number of net new full-time equivalent Florida jobs
521included in the project as of December 31 of each year and the
522average wage of such jobs.
523     7.  The total number of full-time equivalent employees
524employed by the applicant in this state.
525     8.  The percentage of the applicant's gross receipts
526derived from space flight business contracts during the 5
527taxable years immediately preceding the date the application is
528submitted.
529     9.  The number of full-time equivalent jobs in this state
530to be retained by the project.
531     10.  A brief statement concerning the applicant's need for
532tax refunds and the proposed uses of such refunds by the
533applicant.
534     11.  A resolution adopted by the governing board of the
535county or municipality in which the project will be located
536which recommends the applicant be approved as a qualified
537applicant and indicates that the necessary commitments of local
538financial support for the applicant exist. Prior to the adoption
539of the resolution, the county commission may review the proposed
540public or private sources of such support and determine whether
541the proposed sources of local financial support can be provided
542or, for any applicant whose project is located in a county
543designated by the Rural Economic Development Initiative, a
544resolution adopted by the county commissioners of such county
545requesting that the applicant's project be exempt from the local
546financial support requirement.
547     12.  Any additional information requested by the office.
548     (4)  QUALIFIED APPLICANT DEFENSE CONTRACTOR TAX REFUND
549AGREEMENT.--
550     (a)  A qualified applicant shall enter into a written
551agreement with the office containing, but not limited to, the
552following:
553     1.  The total number of full-time equivalent jobs in this
554state that are or will be dedicated to the qualified applicant's
555project, the average wage of such jobs, the definitions that
556will apply for measuring the achievement of these terms during
557the pendency of the agreement, and a time schedule or plan for
558when such jobs will be in place and active in this state.
559     2.  The maximum amount of a refund that the qualified
560applicant is eligible to receive for each fiscal year, based on
561the job creation or retention and maintenance schedule specified
562in subparagraph 1.
563     3.  An agreement with the office allowing the office to
564review and verify the financial and personnel records of the
565qualified applicant to ascertain whether the qualified applicant
566is complying with the requirements of this section.
567     4.  The date by which, in each fiscal year, the qualified
568applicant may file a claim pursuant to subsection (5) to be
569considered to receive a tax refund in the following fiscal year.
570     5.  That local financial support shall be annually
571available and will be paid to the Economic Development Trust
572Fund.
573     (b)  Compliance with the terms and conditions of the
574agreement is a condition precedent for receipt of tax refunds
575each year. The failure to comply with the terms and conditions
576of the agreement shall result in the loss of eligibility for
577receipt of all tax refunds previously authorized pursuant to
578this section, and the revocation of the certification as a
579qualified applicant by the director, unless the qualified
580applicant is eligible to receive and elects to accept a prorated
581refund under paragraph (5)(g) or the office grants the qualified
582applicant an economic-stimulus exemption.
583     1.  A qualified applicant may submit, in writing, a request
584to the office for an economic-stimulus exemption. The request
585must provide quantitative evidence demonstrating how negative
586economic conditions in the qualified applicant's industry, the
587effects of the impact of a named hurricane or tropical storm, or
588specific acts of terrorism affecting the qualified applicant
589have prevented the qualified applicant from complying with the
590terms and conditions of its tax refund agreement.
591     2.  Upon receipt of a request under subparagraph 1., the
592director shall have 45 days to notify the requesting qualified
593applicant, in writing, if its exemption has been granted or
594denied. In determining if an exemption should be granted, the
595director shall consider the extent to which negative economic
596conditions in the requesting qualified applicant's industry, the
597effects of the impact of a named hurricane or tropical storm, or
598specific acts of terrorism affecting the qualified applicant
599have prevented the qualified applicant from complying with the
600terms and conditions of its tax refund agreement.
601     3.  As a condition for receiving a prorated refund under
602paragraph (5)(g) or an economic-stimulus exemption under this
603paragraph, a qualified applicant must agree to renegotiate its
604tax refund agreement with the office to, at a minimum, ensure
605that the terms of the agreement comply with current law and
606office procedures governing application for and award of tax
607refunds. Upon approving the award of a prorated refund or
608granting an economic-stimulus exemption, the office shall
609renegotiate the tax refund agreement with the qualified
610applicant as required by this subparagraph. When amending the
611agreement of a qualified applicant receiving an economic-
612stimulus exemption, the office may extend the duration of the
613agreement for a period not to exceed 2 years.
614     4.  A qualified applicant may submit a request for an
615economic-stimulus exemption to the office in lieu of any tax
616refund claim scheduled to be submitted after January 1, 2005,
617but before July 1, 2006.
618     5.  A qualified applicant that receives an economic-
619stimulus exemption may not receive a tax refund for the period
620covered by the exemption.
621     (c)  The agreement shall be signed by the director and the
622authorized officer of the qualified applicant.
623     (d)  The agreement must contain the following legend,
624clearly printed on its face in bold type of not less than 10
625points:
626
627"This agreement is neither a general obligation of the State of
628Florida, nor is it backed by the full faith and credit of the
629State of Florida. Payment of tax refunds are conditioned on and
630subject to specific annual appropriations by the Florida
631Legislature of funds sufficient to pay amounts authorized in s.
632288.1045, Florida Statutes."
633     (5)  ANNUAL CLAIM FOR REFUND FROM A QUALIFIED DEFENSE
634CONTRACTOR.--
635     (a)  To be eligible to claim any scheduled tax refund,
636qualified applicants who have entered into a written agreement
637with the office pursuant to subsection (4) and who have entered
638into a valid new Department of Defense contract, entered into a
639valid new space flight business contract, commenced the
640consolidation of a space flight business contract, commenced the
641consolidation of a Department of Defense contract, commenced the
642conversion of defense production jobs to nondefense production
643jobs, or entered into a valid contract for reuse of a defense-
644related facility must apply by January 31 of each fiscal year to
645the office for tax refunds scheduled to be paid from the
646appropriation for the fiscal year that begins on July 1
647following the January 31 claims-submission date. The office may,
648upon written request, grant a 30-day extension of the filing
649date. The application must include a notarized signature of an
650officer of the applicant.
651     (b)  The claim for refund by the qualified applicant must
652include a copy of all receipts pertaining to the payment of
653taxes for which a refund is sought, and data related to
654achieving each performance item contained in the tax refund
655agreement pursuant to subsection (4). The amount requested as a
656tax refund may not exceed the amount for the relevant fiscal
657year in the written agreement entered pursuant to subsection
658(4).
659     (c)  A tax refund may not be approved for any qualified
660applicant unless local financial support has been paid to the
661Economic Development Trust Fund for that refund. If the local
662financial support is less than 20 percent of the approved tax
663refund, the tax refund shall be reduced. The tax refund paid may
664not exceed 5 times the local financial support received. Funding
665from local sources includes tax abatement under s. 196.1995 or
666the appraised market value of municipal or county land,
667including any improvements or structures, conveyed or provided
668at a discount through a sale or lease to that applicant provided
669to a qualified applicant. The amount of any tax refund for an
670applicant approved under this section shall be reduced by the
671amount of any such tax abatement granted or the value of the
672land granted, including the value of any improvements or
673structures;, and the limitations in subsection (2) and paragraph
674(3)(h) shall be reduced by the amount of any such tax abatement
675or the value of the land granted, including any improvements or
676structures. A report listing all sources of the local financial
677support shall be provided to the office when such support is
678paid to the Economic Development Trust Fund.
679     (d)  The director, with assistance from the office, the
680Department of Revenue, and the Agency for Workforce Innovation,
681shall, by June 30 following the scheduled date for submitting
682the tax refund claim, specify by written order the approval or
683disapproval of the tax refund claim and, if approved, the amount
684of the tax refund that is authorized to be paid to the qualified
685applicant for the annual tax refund. The office may grant an
686extension of this date upon the request of the qualified
687applicant for the purpose of filing additional information in
688support of the claim.
689     (e)  The total amount of tax refunds approved by the
690director under this section in any fiscal year may not exceed
691the amount authorized under s. 288.095(3).
692     (f)  Upon approval of the tax refund pursuant to paragraphs
693(c) and (d), the Chief Financial Officer shall issue a warrant
694for the amount included in the written order. In the event of
695any appeal of the written order, the Chief Financial Officer may
696not issue a warrant for a refund to the qualified applicant
697until the conclusion of all appeals of the written order.
698     (g)  A prorated tax refund, less a 5 percent penalty, shall
699be approved for a qualified applicant provided all other
700applicable requirements have been satisfied and the applicant
701proves to the satisfaction of the director that it has achieved
702at least 80 percent of its projected employment and that the
703average wage paid by the qualified applicant is at least 90
704percent of the average wage specified in the tax refund
705agreement, but in no case less than 115 percent of the average
706private sector wage in the area available at the time of
707certification. The prorated tax refund shall be calculated by
708multiplying the tax refund amount for which the qualified
709applicant would have been eligible, if all applicable
710requirements had been satisfied, by the percentage of the
711average employment specified in the tax refund agreement which
712was achieved, and by the percentage of the average wages
713specified in the tax refund agreement which was achieved.
714     (h)  This section does not create a presumption that a tax
715refund claim will be approved and paid.
716     (6)  ADMINISTRATION.--
717     (d)  By December 1 of each year, the office shall submit a
718complete and detailed report to the Governor, the President of
719the Senate, and the Speaker of the House of Representatives of
720all tax refunds paid under this section, including analyses of
721benefits and costs, types of projects supported, employment and
722investment created, geographic distribution of tax refunds
723granted, and minority business participation. The report must
724indicate whether the moneys appropriated by the Legislature to
725the qualified applicant tax refund program were expended in a
726prudent, fiducially sound manner.
727     (d)(e)  Funds specifically appropriated for the tax refund
728program under this section may not be used for any purpose other
729than the payment of tax refunds authorized by this section.
730     (8)  EXPIRATION.--An applicant may not be certified as
731qualified under this section after June 30, 2014 2010. A tax
732refund agreement existing on that date shall continue in effect
733in accordance with its terms.
734     Section 2.  Paragraph (f) of subsection (2) of section
73514.2015, Florida Statutes, is amended to read:
736     14.2015  Office of Tourism, Trade, and Economic
737Development; creation; powers and duties.--
738     (2)  The purpose of the Office of Tourism, Trade, and
739Economic Development is to assist the Governor in working with
740the Legislature, state agencies, business leaders, and economic
741development professionals to formulate and implement coherent
742and consistent policies and strategies designed to provide
743economic opportunities for all Floridians. To accomplish such
744purposes, the Office of Tourism, Trade, and Economic Development
745shall:
746     (f)1.  Administer the Florida Enterprise Zone Act under ss.
747290.001-290.016, the community contribution tax credit program
748under ss. 220.183 and 624.5105, the tax refund program for
749qualified target industry businesses under s. 288.106, the tax-
750refund program for qualified defense contractors and space
751flight business contractors under s. 288.1045, contracts for
752transportation projects under s. 288.063, the sports franchise
753facility program under s. 288.1162, the professional golf hall
754of fame facility program under s. 288.1168, the expedited
755permitting process under s. 403.973, the Rural Community
756Development Revolving Loan Fund under s. 288.065, the Regional
757Rural Development Grants Program under s. 288.018, the Certified
758Capital Company Act under s. 288.99, the Florida State Rural
759Development Council, the Rural Economic Development Initiative,
760and other programs that are specifically assigned to the office
761by law, by the appropriations process, or by the Governor.
762Notwithstanding any other provisions of law, the office may
763expend interest earned from the investment of program funds
764deposited in the Grants and Donations Trust Fund to contract for
765the administration of the programs, or portions of the programs,
766enumerated in this paragraph or assigned to the office by law,
767by the appropriations process, or by the Governor. Such
768expenditures shall be subject to review under chapter 216.
769     2.  The office may enter into contracts in connection with
770the fulfillment of its duties concerning the Florida First
771Business Bond Pool under chapter 159, tax incentives under
772chapters 212 and 220, tax incentives under the Certified Capital
773Company Act in chapter 288, foreign offices under chapter 288,
774the Enterprise Zone program under chapter 290, the Seaport
775Employment Training program under chapter 311, the Florida
776Professional Sports Team License Plates under chapter 320,
777Spaceport Florida under chapter 331, Expedited Permitting under
778chapter 403, and in carrying out other functions that are
779specifically assigned to the office by law, by the
780appropriations process, or by the Governor.
781     Section 3.  Paragraph (k) of subsection (8) of section
782213.053, Florida Statutes, is amended to read:
783     213.053  Confidentiality and information sharing.--
784     (8)  Notwithstanding any other provision of this section,
785the department may provide:
786     (k)1.  Payment information relative to chapters 199, 201,
787212, 220, 221, and 624 to the Office of Tourism, Trade, and
788Economic Development, or its employees or agents that are
789identified in writing by the office to the department, in the
790administration of the tax refund program for qualified defense
791contractors and space flight business contractors authorized by
792s. 288.1045 and the tax refund program for qualified target
793industry businesses authorized by s. 288.106.
794     2.  Information relative to tax credits taken by a business
795under s. 220.191 and exemptions or tax refunds received by a
796business under s. 212.08(5)(j) to the Office of Tourism, Trade,
797and Economic Development, or its employees or agents that are
798identified in writing by the office to the department, in the
799administration and evaluation of the capital investment tax
800credit program authorized in s. 220.191 and the semiconductor,
801defense, and space tax exemption program authorized in s.
802212.08(5)(j).
803
804Disclosure of information under this subsection shall be
805pursuant to a written agreement between the executive director
806and the agency. Such agencies, governmental or nongovernmental,
807shall be bound by the same requirements of confidentiality as
808the Department of Revenue. Breach of confidentiality is a
809misdemeanor of the first degree, punishable as provided by s.
810775.082 or s. 775.083.
811     Section 4.  This act shall take effect July 1, 2008.


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