HB 269

1
A bill to be entitled
2An act relating to super enterprise zones; amending s.
3212.02, F.S.; defining the term "certified business" for
4purposes of a tax exemption provided to certain businesses
5located within a super enterprise zone; providing for
6future expiration; amending s. 212.08, F.S.; providing a
7tax exemption for certain property purchased for use or
8consumption by businesses in a super enterprise zone and
9for retail sales made by certified businesses in a super
10enterprise zone; providing an exception; specifying
11periods for applying the exemptions for certain
12businesses; providing for future expiration of the
13exemption; amending s. 290.0056, F.S.; providing
14additional responsibilities of an enterprise zone
15development agency relating to super enterprise zones;
16requiring an economic impact report; providing for future
17expiration; amending s. 290.0057, F.S.; applying
18requirements for an enterprise zone development plan to
19super enterprise zones; creating s. 290.00681, F.S.;
20requiring the Office of Tourism, Trade, and Economic
21Development to designate specified areas in Miami-Dade
22County as pilot project super enterprise zones for a
23certain period; providing qualification criteria;
24providing application requirements; providing for future
25expiration and revocation of the designation; creating s.
26290.00682, F.S.; providing requirements for qualification
27as a certified business for purposes of the sales tax
28exemption; authorizing a local enterprise zone development
29agency to certify businesses; requiring the agency to
30provide lists of certified businesses; providing for
31disqualifying certified businesses under certain
32circumstances; providing for future expiration and
33revocation of certifications; amending s. 290.007, F.S.;
34specifying incentives for the revitalization of super
35enterprise zones; requiring interim and final reviews of
36super enterprise zones by the Office of Program Policy
37Analysis and Government Accountability; providing review
38criteria; requiring reports to the Legislature; providing
39an effective date.
40
41Be It Enacted by the Legislature of the State of Florida:
42
43     Section 1.  Subsection (34) is added to section 212.02,
44Florida Statutes, to read:
45     212.02  Definitions.--The following terms and phrases when
46used in this chapter have the meanings ascribed to them in this
47section, except where the context clearly indicates a different
48meaning:
49     (34)  "Certified business" means a business that is located
50in a super enterprise zone and that is certified under s.
51290.00682. This subsection expires June 30, 2022.
52     Section 2.  Subsection (19) is added to section 212.08,
53Florida Statutes, to read:
54     212.08  Sales, rental, use, consumption, distribution, and
55storage tax; specified exemptions.--The sale at retail, the
56rental, the use, the consumption, the distribution, and the
57storage to be used or consumed in this state of the following
58are hereby specifically exempt from the tax imposed by this
59chapter.
60     (19)  EXEMPTIONS; SUPER ENTERPRISE ZONES.--
61     (a)  The tax imposed by this chapter does not apply to:
62     1.  Tangible personal property purchased by a certified
63business for the exclusive use or consumption of that business
64within a super enterprise zone; or
65     2.  Retail sales of tangible personal property made by a
66certified business from a place of business that is owned or
67leased and operated by the business for the purpose of making
68retail sales and that is located in a super enterprise zone. The
69exemption provided by this subparagraph does not apply to the
70retail sale of any item having a price greater than $1,000. In
71order to qualify for the exemption under this subparagraph, the
72purchaser must take possession of the qualified item within the
73super enterprise zone or the qualified item must be shipped from
74inside the super enterprise zone; however, the item may be
75shipped to any location. For purposes of this section, each
76qualified sale made by a certified business that is located in a
77super enterprise zone shall be deemed to have occurred within
78the super enterprise zone regardless of where the transfer of
79title or possession takes place.
80     (b)  Notwithstanding paragraph (a), a new business
81established in a super enterprise zone and certified on or after
82July 1, 2010, pursuant to s. 290.00682, is eligible for the
83exemptions provided under this subsection for a period not to
84exceed 10 years immediately following such certification. For an
85existing business located in a super enterprise zone and
86certified on or after July 1, 2010, the exemptions provided
87under this subsection are available for a period not to exceed 5
88years, beginning in the year in which the business receives its
89initial certification and continuing for up to 5 years
90immediately following such certification.
91     (c)  This subsection expires June 30, 2022.
92     Section 3.  Paragraph (i) is added to subsection (8) of
93section 290.0056, Florida Statutes, present paragraph (f) of
94subsection (11) of that section is redesignated as paragraph
95(g), and a new paragraph (f) is added to that subsection, to
96read:
97     290.0056  Enterprise zone development agency.--
98     (8)  The enterprise zone development agency shall have the
99following powers and responsibilities:
100     (i)1.  To recommend and submit an application to the office
101for the designation of a super enterprise zone.
102     2.  To coordinate with the local governmental entity for
103the exemptions from the sales and use tax provided under s.
104212.08(19).
105
106Notwithstanding section 11 of chapter 2005-287, Laws of Florida,
107this paragraph expires June 30, 2022.
108     (11)  Prior to December 1 of each year, the agency shall
109submit to the Office of Tourism, Trade, and Economic Development
110a complete and detailed written report setting forth:
111     (f)  The economic impact of a super enterprise zone, if
112applicable, including:
113     1.  A list of each certified business and whether the
114business is new or where the business relocated from.
115     2.  The number of jobs created.
116     3.  The percentage of employees who are employed by
117certified businesses and who reside in the super enterprise zone
118or in an enterprise zone within the same county.
119     4.  The extent of capital investment by certified
120businesses within the zone.
121     5.  The success of the super enterprise zone as measured by
122the strategic plan and methods identified in s. 290.0057(1)(i).
123
124Notwithstanding section 11 of chapter 2005-287, Laws of Florida,
125this paragraph expires June 30, 2021.
126     Section 4.  Subsection (1) of section 290.0057, Florida
127Statutes, is amended to read:
128     290.0057  Enterprise zone development plan.--
129     (1)  Any application for designation as a new enterprise
130zone or super enterprise zone must be accompanied by a strategic
131plan adopted by the governing body of the municipality or
132county, or the governing bodies of the county and one or more
133municipalities together. At a minimum, the plan must:
134     (a)  Briefly describe the community's goals for
135revitalizing the area.
136     (b)  Describe the ways in which the community's approaches
137to economic development, social and human services,
138transportation, housing, community development, public safety,
139and educational and environmental concerns will be addressed in
140a coordinated fashion, and explain how these linkages support
141the community's goals.
142     (c)  Identify and describe key community goals and the
143barriers that restrict the community from achieving these goals,
144including a description of poverty and general distress,
145barriers to economic opportunity and development, and barriers
146to human development.
147     (d)  Describe the process by which the affected community
148is a full partner in the process of developing and implementing
149the plan and the extent to which local institutions and
150organizations have contributed to the planning process.
151     (e)  Commit the governing body or bodies to enact and
152maintain local fiscal and regulatory incentives, if approval for
153the area is received under s. 290.0065. These incentives may
154include the municipal public service tax exemption provided by
155s. 166.231, the economic development ad valorem tax exemption
156provided by s. 196.1995, the business tax exemption provided by
157s. 205.054, local impact fee abatement or reduction, or low-
158interest or interest-free loans or grants to businesses to
159encourage the revitalization of the nominated area.
160     (f)  Identify the amount of local and private resources
161that will be available in the nominated area and the private-
162public private/public partnerships to be used, which may include
163participation by, and cooperation with, universities, community
164colleges, small business development centers, black business
165investment corporations, certified development corporations, and
166other private and public entities.
167     (g)  Indicate how state enterprise zone tax incentives and
168state, local, and federal resources will be used utilized within
169the nominated area.
170     (h)  Identify the funding requested under any state or
171federal program in support of the proposed economic, human,
172community, and physical development and related activities.
173     (i)  Identify baselines, methods, and benchmarks for
174measuring the success of carrying out the strategic plan.
175     Section 5.  Sections 290.00681 and 290.00682, Florida
176Statutes, are created to read:
177     290.00681  Super enterprise zone pilot project;
178designation; future expiration and revocation.--
179     (1)  The Office of Tourism, Trade, and Economic Development
180shall designate four areas in the state as super enterprise
181zones for a 10-year period. These areas shall serve as a pilot
182project for this program. Specifically, the area in Miami-Dade
183County bordered by Northwest 23rd Street to the north, Northwest
1845th Street to the south, Northeast 1st Avenue to the east, and
185Northwest 8th Avenue to the west shall be designated as a super
186enterprise zone and the area of Overtown in Miami-Dade County
187shall be designated as super enterprise zones. In order to
188qualify as a super enterprise zone, an area must:
189     (a)  Be located in an enterprise zone and be no larger than
1903 contiguous square miles.
191     (b)  Have an average unemployment rate four times greater
192than the state average.
193     (c)  Have a minimum of 40 percent of residents living below
194the federal poverty level.
195     (d)  Have general distress of business and residential
196property such that the local governing body by resolution has
197determined that the buildings are substandard, unsafe,
198unsanitary, dilapidated, or obsolete, or any combination of such
199conditions, and are detrimental to the safety, health, and
200welfare of the community.
201     (e)  Demonstrate evidence of significant job loss or
202dislocation in the area.
203
204In determining whether an area meets the criteria of this
205subsection for unemployment, poverty, and general distress, the
206office shall use data from the most current decennial census and
207from information published by the Bureau of the Census and the
208Bureau of Labor Statistics. The data shall be comparable in
209point or period of time and methodology employed.
210     (2)  Any application for designation as a super enterprise
211zone must:
212     (a)  Briefly describe the community's goals for
213revitalizing the area and include a development plan.
214     (b)  Describe the ways in which the community's approach to
215economic development, social and human services, transportation,
216housing, community development, public safety, and educational
217and environmental concerns will be addressed in a coordinated
218fashion and explain how these linkages support the community's
219goals.
220     (c)  Identify and describe key community goals and the
221barriers that restrict the community from achieving these goals.
222     (d)  Identify the amount of local and private support and
223resources that will be available.
224     (e)  Identify baselines, methods, and benchmarks for
225measuring success.
226     (f)  Include written approval from any associated county
227office and mayor's office.
228     (3)  This section expires June 30, 2022, and any
229designation made pursuant to this section shall be revoked on
230that date.
231     290.00682  Super enterprise zones; business
232certification.--
233     (1)  A certified business is eligible for the tax
234exemptions provided in s. 212.08(19). In order to qualify as a
235certified business, receive an exemption certificate, and
236continue to receive the tax exemptions provided in s.
237212.08(19), a business must:
238     (a)  File an application for certification with the local
239enterprise zone development agency. The application shall be
240filed no later than September 1 preceding the calendar year for
241which the business is seeking an exemption.
242     (b)  Operate and be located within a designated super
243enterprise zone.
244     (c)  Create new employment within the super enterprise zone
245while not causing unemployment elsewhere in the state.
246     (d)  Certify to the best of the business's knowledge that
247the business has no delinquent federal or state tax obligations.
248     (e)  Demonstrate that no fewer than 20 percent of its
249employees are residents of the designated super enterprise zone
250or an enterprise zone located within the same county. The
251employment requirement may be waived by the local enterprise
252zone development agency for good cause.
253     (2)  A local enterprise zone development agency may certify
254a business as eligible for the exemptions under s. 212.08(19)
255annually if the business meets the requirements in subsection
256(1).  Each local enterprise zone development agency shall
257annually provide the local governmental entity, the office, and
258the Department of Revenue with a list of new and existing
259certified businesses. The Department of Revenue shall annually
260issue a tax exemption certificate to each business holding an
261exemption certificate issued by the local enterprise zone
262development agency. The certificate remains in effect for 1
263calendar year.
264     (3)  A local enterprise zone development agency may
265disqualify a certified business at any time if the business
266fails to meet the requirements of subsection (1). A business
267that makes a fraudulent claim under this section for tax
268exemptions provided in s. 212.08(19) is liable for the payment
269of the tax due, together with the penalties set forth in s.
270212.085, and as otherwise provided by law.
271     (4)  This section expires June 30, 2022, and any
272certification made pursuant to this section shall be revoked on
273that date.
274     Section 6.  Section 290.007, Florida Statutes, is amended
275to read:
276     290.007  State incentives available in enterprise zones and
277super enterprise zones.--
278     (1)  The following incentives are provided by the state to
279encourage the revitalization of enterprise zones:
280     (a)(1)  The enterprise zone jobs credit provided in s.
281220.181.
282     (b)(2)  The enterprise zone property tax credit provided in
283s. 220.182.
284     (c)(3)  The community contribution tax credits provided in
285ss. 212.08, 220.183, and 624.5105.
286     (d)(4)  The sales tax exemption for building materials used
287in the rehabilitation of real property in enterprise zones
288provided in s. 212.08(5)(g).
289     (e)(5)  The sales tax exemption for business equipment used
290in an enterprise zone provided in s. 212.08(5)(h).
291     (f)(6)  The sales tax exemption for electrical energy used
292in an enterprise zone provided in s. 212.08(15).
293     (g)(7)  The enterprise zone jobs credit against the sales
294tax provided in s. 212.096.
295     (h)(8)  Notwithstanding any law to the contrary, the Public
296Service Commission may allow public utilities and
297telecommunications companies to grant discounts of up to 50
298percent on tariffed rates for services to small businesses
299located in an enterprise zone designated pursuant to s.
300290.0065. Such discounts may be granted for a period not to
301exceed 5 years. For purposes of this paragraph subsection, the
302term "public utility" has the same meaning as in s. 366.02(1)
303and the term "telecommunications company" has the same meaning
304as in s. 364.02(14).
305     (2)  The following incentives are provided by the state to
306encourage the revitalization of super enterprise zones:
307     (a)  The sales tax exemption for certified businesses
308provided in s. 212.08(19)(a)1.
309     (b)  The sales tax exemption for retail sales by certified
310businesses provided in s. 212.08(19)(a)2.
311     Section 7.  Before the 2016 Regular Session of the
312Legislature, the Office of Program Policy Analysis and
313Government Accountability shall conduct an interim review and
314evaluation of the effectiveness and viability of the super
315enterprise zones designated under s. 290.00681, Florida
316Statutes. The office shall specifically evaluate whether relief
317from the specified taxes caused or induced new investment and
318development in the super enterprise zones; increased the number
319of jobs created or retained in the super enterprise zones;
320caused or induced the renovation, rehabilitation, restoration,
321improvement, or new construction of businesses or housing within
322the super enterprise zones; or contributed to the economic
323viability and profitability of business and commerce located
324within the super enterprise zones. The office shall submit a
325report of its findings and recommendations to the President of
326the Senate and the Speaker of the House of Representatives by
327December 1, 2015. In 2021, the office shall conduct a final
328review in accordance with this section and make a final report
329to the President of the Senate and the Speaker of the House of
330Representatives by December 1 of that year.
331     Section 8.  This act shall take effect July 1, 2009.


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