CS/HB 879

1	A bill to be entitled
2	An act relating to the tax refund program for qualified
3	target industry businesses; amending s. 288.106, F.S.;
4	revising definition of the term "target industry
5	business"; revising the eligibility criteria for tax
6	refunds under the program; requiring certain local
7	governing boards to notify the Office of Tourism, Trade,
8	and Economic Development and Enterprise Florida, Inc., of
9	the average private-sector wage calculation to be used for
10	purposes of a business's wage commitment under the tax
11	refund program; providing an effective date.
12
13	Be It Enacted by the Legislature of the State of Florida:
14
15	Section 1.  Paragraph (t) of subsection (2) and paragraph
16	(b) of subsection (4) of section 288.106, Florida Statutes, are
17	amended to read:
18	288.106  Tax refund program for qualified target industry
19	businesses.-
20	(2)  DEFINITIONS.-As used in this section:
21	(t)  "Target industry business" means a corporate
22	headquarters business or any business that is engaged in one of
23	the target industries identified pursuant to the following
24	criteria developed by the office in consultation with Enterprise
25	Florida, Inc.:
26	1.  Future growth.-Industry forecasts should indicate
27	strong expectation for future growth in both employment and
28	output, according to the most recent available data. Special
29	consideration should be given to businesses that export goods
30	to, or provide services in, international markets and businesses
31	that replace domestic and international imports of goods or
32	services.
33	2.  Stability.-The industry should not be subject to
34	periodic layoffs, whether due to seasonality or sensitivity to
35	volatile economic variables such as weather. The industry should
36	also be relatively resistant to recession, so that the demand
37	for products of this industry is not typically subject to
38	decline during an economic downturn.
39	3.  High wage.-The industry should pay relatively high
40	wages compared to statewide or area averages.
41	4.  Market and resource independent.-The location of
42	industry businesses should not be dependent on Florida markets
43	or resources as indicated by industry analysis, except for
44	businesses in the renewable energy industry.
45	5.  Industrial base diversification and strengthening.-The
46	industry should contribute toward expanding or diversifying the
47	state's or area's economic base, as indicated by analysis of
48	employment and output shares compared to national and regional
49	trends. Special consideration should be given to industries that
50	strengthen regional economies by adding value to basic products
51	or building regional industrial clusters as indicated by
52	industry analysis. Special consideration should also be given to
53	the development of strong industrial clusters that include
54	defense and homeland security businesses.
55	6.  Economic benefits.-The industry is expected to have
56	strong positive impacts on or benefits to the state or regional
57	economies.
58	7.  Enhance trade.-The industry should facilitate the
59	growth and development of domestic and international trade and
60	logistics. Special consideration should be given to industries
61	that strengthen the state's position as a global trade and
62	logistics hub.
63
64	The term does not include any business engaged in retail
65	industry activities; any electrical utility company; any
66	phosphate or other solid minerals severance, mining, or
67	processing operation; any oil or gas exploration or production
68	operation; or any business subject to regulation by the Division
69	of Hotels and Restaurants of the Department of Business and
70	Professional Regulation. Any business within NAICS code 5611 or
71	5614, office administrative services and business support
72	services, respectively, may be considered a target industry
73	business only after the local governing body and Enterprise
74	Florida, Inc., make a determination that the community where the
75	business may locate has conditions affecting the fiscal and
76	economic viability of the local community or area, including but
77	not limited to, factors such as low per capita income, high
78	unemployment, high underemployment, and a lack of year-round
79	stable employment opportunities, and such conditions may be
80	improved by the location of such a business to the community. By
81	January 1 of every 3rd year, beginning January 1, 2011, the
82	office, in consultation with Enterprise Florida, Inc., economic
83	development organizations, the State University System, local
84	governments, employee and employer organizations, market
85	analysts, and economists, shall review and, as appropriate,
86	revise the list of such target industries and submit the list to
87	the Governor, the President of the Senate, and the Speaker of
88	the House of Representatives.
89	(4)  APPLICATION AND APPROVAL PROCESS.-
90	(b)  To qualify for review by the office, the application
91	of a target industry business must, at a minimum, establish the
92	following to the satisfaction of the office:
93	1.a.  The jobs proposed to be created under the
94	application, pursuant to subparagraph (a)4., must pay an
95	estimated annual average wage equaling at least 115 percent of
96	the average private sector wage in the area where the business
97	is to be located or the statewide private sector average wage.
98	The governing board of the local governmental entity providing
99	the local financial support county where the qualified target
100	industry business is to be located shall notify the office and
101	Enterprise Florida, Inc., which calculation of the average
102	private sector wage in the area must be used as the basis for
103	the business's wage commitment. In determining the average
104	annual wage, the office shall include only new proposed jobs,
105	and wages for existing jobs shall be excluded from this
106	calculation.
107	b.  The office may waive the average wage requirement at
108	the request of the local governing body recommending the project
109	and Enterprise Florida, Inc. The office may waive the wage
110	requirement for a project located in a brownfield area
111	designated under s. 376.80, in a rural city, in a rural
112	community, in an enterprise zone, or for a manufacturing project
113	at any location in the state if the jobs proposed to be created
114	pay an estimated annual average wage equaling at least 100
115	percent of the average private sector wage in the area where the
116	business is to be located, only if the merits of the individual
117	project or the specific circumstances in the community in
118	relationship to the project warrant such action. If the local
119	governing body and Enterprise Florida, Inc., make such a
120	recommendation, it must be transmitted in writing, and the
121	specific justification for the waiver recommendation must be
122	explained. If the office elects to waive the wage requirement,
123	the waiver must be stated in writing, and the reasons for
124	granting the waiver must be explained.
125	2.  The target industry business's project must result in
126	the creation of at least 10 jobs at the project and, in the case
127	of an expansion of an existing business, must result in a net
128	increase in employment of at least 10 percent at the business.
129	At the request of the local governing body recommending the
130	project and Enterprise Florida, Inc., the office may waive this
131	requirement for a business in a rural community or enterprise
132	zone if the merits of the individual project or the specific
133	circumstances in the community in relationship to the project
134	warrant such action. If the local governing body and Enterprise
135	Florida, Inc., make such a request, the request must be
136	transmitted in writing, and the specific justification for the
137	request must be explained. If the office elects to grant the
138	request, the grant must be stated in writing, and the reason for
139	granting the request must be explained.
140	3.  The business activity or product for the applicant's
141	project must be within an industry identified by the office as a
142	target industry business that contributes to the economic growth
143	of the state and the area in which the business is located, that
144	produces a higher standard of living for residents of this state
145	in the new global economy, or that can be shown to make an
146	equivalent contribution to the area's and state's economic
147	progress.
148	Section 2.  This act shall take effect July 1, 2011.

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