Bill Text: FL S1686 | 2011 | Regular Session | Introduced
Bill Title: Economic Development
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [S1686 Detail]
Download: Florida-2011-S1686-Introduced.html
Florida Senate - 2011 SB 1686 By Senator Detert 23-01464A-11 20111686__ 1 A bill to be entitled 2 An act relating to economic development; creating s. 3 288.005, F.S.; providing definitions; amending s. 4 288.095, F.S.; making technical changes; deleting 5 obsolete provisions; deleting a requirement for 6 Enterprise Florida, Inc., to prepare an annual report; 7 amending s. 288.106, F.S.; deleting a definition; 8 revising criteria for the designation of target 9 industries developed by the Office of Tourism, Trade, 10 and Economic Development; requiring the Office of 11 Tourism, Trade, and Economic Development to consider 12 the economic benefits when awarding economic 13 development incentives and certifying a business as a 14 qualified target industry business; amending s. 15 288.1088, F.S.; requiring awards from the Quick Action 16 Closing Fund to have a positive economic benefit; 17 amending s. 288.90151, F.S.; revising legislative 18 intent; providing that private sector support for the 19 operations of Enterprise Florida, Inc., includes cash 20 jointly raised by Enterprise Florida, Inc., and a 21 private statewide business organization that supports 22 collaborative projects; requiring the Office of 23 Economic and Demographic Research to hire an economic 24 analysis firm to assist in the development of a 25 methodology for establishing and reporting of economic 26 benefits of awards from the Quick Action Closing Fund; 27 amending s. 288.906, F.S.; revising the required 28 contents of an annual report by Enterprise Florida, 29 Inc.; creating s. 288.907, F.S.; requiring Enterprise 30 Florida, Inc., to create an annual incentives report; 31 specifying the required components of the report; 32 amending s. 288.911, F.S.; requiring Enterprise 33 Florida, Inc., to cooperate with VISIT Florida in the 34 promotion of this state to businesses in target 35 industries and high-impact industries; requiring that 36 certain counties and municipalities annually provide 37 to Enterprise Florida, Inc., an overview of certain 38 local economic development activities; amending s. 39 288.7771, F.S.; conforming a cross-reference to 40 changes made by the act; providing an effective date. 41 42 Be It Enacted by the Legislature of the State of Florida: 43 44 Section 1. Section 288.005, Florida Statutes, is created to 45 read: 46 288.005 Definitions.—As used in this chapter, the term: 47 (1) “Economic benefits” mean the direct, indirect, or 48 induced gains in state tax revenues as a percentage of the 49 state’s investment. The state’s investment includes state 50 grants, tax exemptions, tax refunds, tax credits, and other 51 state incentives. The economic-benefits calculation may be 52 expressed as a ratio of the increase in state revenues as 53 compared to the state’s investment. 54 (2) “Office” means the Office of Tourism, Trade, and 55 Economic Development in the Executive Office of the Governor. 56 Section 2. Subsection (3) of section 288.095, Florida 57 Statutes, is amended to read: 58 288.095 Economic Development Trust Fund.— 59 (3)(a) The officeof Tourism, Trade, and Economic60Developmentmay approve applications for certification pursuant 61 to ss. 288.1045(3) and 288.106. However, the total state share 62 of tax refund payments scheduled in all active certifications in 63 anyforfiscal year2001-2002may not exceed $35$30million. 64The total for each subsequent fiscal year may not exceed $3565million.66 (b) The total amount of tax refund claims approved for 67 payment by the officeof Tourism, Trade, and Economic68Developmentbased on actual project performance may not exceed 69 the amount appropriated to the Economic Development Incentives 70 Account for such purposes for the fiscal year. Claims for tax 71 refunds under ss. 288.1045 and 288.106 shall be paid in the 72 order the claims are approved by the officeof Tourism, Trade,73and Economic Development. IfIn the eventthe Legislature does 74 not appropriate an amount sufficient to satisfy the tax refunds 75 under ss. 288.1045 and 288.106 in a fiscal year, the officeof76Tourism, Trade, and Economic Developmentshall pay the tax 77 refunds from the appropriation for the following fiscal year. By 78 March 1 of each year, the officeof Tourism, Trade, and Economic79Developmentshall notify the legislative appropriations 80 committees of the Senate and House of Representatives of any 81 anticipated shortfall in the amount of funds needed to satisfy 82 claims for tax refunds from the appropriation for the current 83 fiscal year. 84(c) By December 31 of each year,Enterprise Florida, Inc.,85shall submit a complete and detailed report to the Governor, the86President of the Senate, the Speaker of the House of87Representatives, and the director of the Officeof Tourism,88Trade, and Economic Development of all applications received,89recommendations made to the Office of Tourism, Trade, and90Economic Development, final decisions issued, tax refund91agreements executed, and tax refunds paid or other payments made92under all programs funded out of the Economic Development93Incentives Account, including analyses of benefits and costs,94types of projects supported, and employment and investment95created. Enterprise Florida, Inc., shall also include a separate96analysis of the impact of such tax refunds on state enterprise97zones designated pursuant to s.290.0065, rural communities,98brownfield areas, and distressed urban communities. The report99must also discuss the efforts made by the Office of Tourism,100Trade, and Economic Development to amend tax refund agreements101to require tax refund claims to be submitted by January 31 for102the net new full-time equivalent jobs in this state as of103December 31 of the preceding calendar year. The report must also104list the name and tax refund amount for each business that has105received a tax refund under s.288.1045or s.288.106during the106preceding fiscal year. The Office of Tourism, Trade, and107Economic Development shall assist Enterprise Florida, Inc., in108the collection of data related to business performance and109incentive payments.110 (c)(d)Moneys in the Economic Development Incentives 111 Account may be used only to pay tax refunds and other payments 112 authorized under s. 288.1045, s. 288.106, or s. 288.107. 113 (d)(e)The Office of Tourism, Trade, and Economic 114 Development may adopt rules necessary to carry out the 115 provisions of this subsection, including rules providing for the 116 use of moneys in the Economic Development Incentives Account and 117 for the administration of the Economic Development Incentives 118 Account. 119 Section 3. Paragraphs (q) and (t) of subsection (2) and 120 paragraph (c) of subsection (4) of section 288.106, Florida 121 Statutes, are amended, and present paragraphs (r) through (u) of 122 subsection (2) are redesignated as paragraphs (q) through (t), 123 respectively, to read: 124 288.106 Tax refund program for qualified target industry 125 businesses.— 126 (2) DEFINITIONS.—As used in this section: 127(q) “Return on investment” means the gain in state revenues128as a percentage of the state’s investment. The state’s129investment includes state grants, tax exemptions, tax refunds,130tax credits, and other state incentives.131 (s)(t)“Target industry business” means a corporate 132 headquarters business or any business that is engaged in one of 133 the target industries identified pursuant to the following 134 criteria developed by the office in consultation with Enterprise 135 Florida, Inc.: 136 1. Future growth.—Industry forecasts should indicate strong 137 expectation for future growth in both employment and output, 138 according to the most recent available data. Special 139 consideration should be given to businesses that export goods 140 to, or provide services in, international markets and businesses 141 that replace domestic and international imports of goods or 142 services. 143 2. Stability.—The industry should not be subject to 144 periodic layoffs, whether due to seasonality or sensitivity to 145 volatile economic variables such as weather. The industry should 146 also be relatively resistant to recession, so that the demand 147 for products of this industry is not typically subject to 148 decline during an economic downturn. 149 3. High wage.—The industry should pay relatively high wages 150 compared to statewide or area averages. 151 4. Market and resource independent.—The location of 152 industry businesses should not be dependent on Florida markets 153 or resources as indicated by industry analysis, except for 154 businesses in the renewable energy industry. 155 5. Industrial base diversification and strengthening.—The 156 industry should contribute toward expanding or diversifying the 157 state’s or area’s economic base, as indicated by analysis of 158 employment and output shares compared to national and regional 159 trends. Special consideration should be given to industries that 160 strengthen regional economies by adding value to basic products 161 or building regional industrial clusters as indicated by 162 industry analysis. Special consideration should also be given to 163 the development of strong industrial clusters that include 164 defense and homeland security businesses. 165 6. Positive impactEconomicbenefits.—The industry is 166 expected to have strong positive impacts on or benefits to the 167 state or regional economies. 168 169 The term does not include any business engaged in retail 170 industry activities; any electrical utility company; any 171 phosphate or other solid minerals severance, mining, or 172 processing operation; any oil or gas exploration or production 173 operation; or any business subject to regulation by the Division 174 of Hotels and Restaurants of the Department of Business and 175 Professional Regulation. Any business within NAICS code 5611 or 176 5614, office administrative services and business support 177 services, respectively, may be considered a target industry 178 business only after the local governing body and Enterprise 179 Florida, Inc., make a determination that the community where the 180 business may locate has conditions affecting the fiscal and 181 economic viability of the local community or area, including but 182 not limited to, factors such as low per capita income, high 183 unemployment, high underemployment, and a lack of year-round 184 stable employment opportunities, and such conditions may be 185 improved by the location of such a business to the community. By 186 January 1 of every 3rd year, beginning January 1, 2011, the 187 office, in consultation with Enterprise Florida, Inc., economic 188 development organizations, the State University System, local 189 governments, employee and employer organizations, market 190 analysts, and economists, shall review and, as appropriate, 191 revise the list of such target industries and submit the list to 192 the Governor, the President of the Senate, and the Speaker of 193 the House of Representatives. 194 (4) APPLICATION AND APPROVAL PROCESS.— 195 (c) Each application meeting the requirements of paragraph 196 (b) must be submitted to the office for determination of 197 eligibility. The office shall review and evaluate each 198 application based on, but not limited to, the following 199 criteria: 200 1. Expected contributions to the state’s economy, 201 consistent with the state strategic economic development plan 202 adopted by Enterprise Florida, Inc. 203 2. The economic benefitsreturn on investmentof the 204 proposed award of tax refunds under this section and the 205 economic benefits ofreturn on investment forstate incentives 206 proposed for the project. The Office of Economic and Demographic 207 Research shall review and evaluate the methodology and model 208 used to calculate the economic benefitsreturn on investmentand 209 shall report its findings by September 1 of every 3rd year, 210 beginning September 1, 2010, to the President of the Senate and 211 the Speaker of the House of Representatives. 212 3. The amount of capital investment to be made by the 213 applicant in this state. 214 4. The local financial commitment and support for the 215 project. 216 5. The effect of the project on the unemployment rate in 217 the county where the project will be located. 218 6. The effect of the award on the viability of the project 219 and the probability that the project would be undertaken in this 220 state if such tax refunds are granted to the applicant. 221 7. The expected long-term commitment of the applicant to 222 economic growth and employment in this state resulting from the 223 project. 224 8. A review of the business’s past activities in this state 225 or other states, including whether such business has been 226 subjected to criminal or civil fines and penalties. This 227 subparagraph does not require the disclosure of confidential 228 information. 229 Section 4. Subsection (2) of section 288.1088, Florida 230 Statutes, is amended to read: 231 288.1088 Quick Action Closing Fund.— 232 (2) There is created within the Office of Tourism, Trade, 233 and Economic Development the Quick Action Closing Fund. Projects 234 eligible for receipt of funds from the Quick Action Closing Fund 235 shall: 236 (a) Be in an industry as referenced in s. 288.106. 237 (b) Have a positive economic benefitpayback ratioof at 238 least 5 to 1. 239 (c) Be an inducement to the project’s location or expansion 240 in the state. 241 (d) Pay an average annual wage of at least 125 percent of 242 the areawide or statewide private sector average wage. 243 (e) Be supported by the local community in which the 244 project is to be located. 245 Section 5. Section 288.90151, Florida Statutes, is amended 246 to read: 247 288.90151 Economic benefitReturn on investmentfrom 248 activities of Enterprise Florida, Inc.; private sector support.— 249 (1) The public funds appropriated each year for the 250 operation of Enterprise Florida, Inc., are invested in this 251 public-private partnership to enhance international trade and 252 economic development, to spur job-creating investments, and to 253 create new employment opportunities for Floridians. This policy 254 will be the Legislature’s priority consideration when reviewing 255 the return of the public’s investment in funding the activities 256 ofreturn-on-investment forEnterprise Florida, Inc. 257 (2) It is also the intent of the Legislature that 258 Enterprise Florida, Inc., coordinate its operations with local 259 economic-development organizations to maximize the state and 260 local economic benefits of creating and retainingreturn-on261investment to createjobs for Floridians. 262 (3) It is further the intent of the Legislature to maximize 263 private sector support in operating Enterprise Florida, Inc., as 264 an endorsement of its value and as an enhancement of its 265 efforts. 266 (4)(a) The state’s operating investment in Enterprise 267 Florida, Inc., is the budget contracted by the officeof268Tourism, Trade, and Economic Developmentto Enterprise Florida, 269 Inc., less funding that is directed by the Legislature to be 270 subcontracted to a specific recipient. 271 (b) The board of directors of Enterprise Florida, Inc., 272 shall adopt for each upcoming fiscal year an operating budget 273 for the organization that specifies the intended uses of the 274 state’s operating investment and a plan for securing private 275 sector support to Enterprise Florida, Inc. Each fiscal year 276 private sector support to Enterprise Florida, Inc., shall equal 277 no less than 100 percent of the state’s operating investment, 278 including at least $1 million in cash as defined in paragraph 279 (5)(a), and an additional $400,000 in cash as defined in 280 paragraphs (5)(a), (b), and (c). 281 (5) Private sector support in operating Enterprise Florida, 282 Inc., includes: 283 (a) Cash given directly to Enterprise Florida, Inc., for 284 its operations, excluding contributions from grantees or 285 companies having contracts with Enterprise Florida, Inc., which 286 represent more than 5 percent of the value of all contracts with 287 Enterprise Florida, Inc., exclusive of grants, or more than 5 288 percent of the company’s revenues. Cash in this category is not 289 subject to restrictions on the use of appropriated funds; 290 (b) Cash jointly raised by Enterprise Florida, Inc., and a 291 local economic development organization, a group of such 292 organizations, or a private, statewide business organization 293 that supports collaborative projects; 294 (c) Cash generated by fees charged for products or services 295 of Enterprise Florida, Inc., and by sponsorship of events, 296 missions, programs, and publications; and 297 (d) In-kind contributions directly to Enterprise Florida, 298 Inc., including: business expenditures; business services 299 provided; business support; or other business contributions that 300 augment the operations, program, activities, or assets of 301 Enterprise Florida, Inc., including, but not limited to: an 302 individual’s time and expertise; sponsored publications; private 303 sector staff services; payment for advertising placements; 304 sponsorship of events; sponsored or joint research; discounts on 305 leases or purchases; mission or program sponsorship; and 306 copayments, stock, warrants, royalties, or other private 307 resources dedicated to Enterprise Florida, Inc. 308 (6) Enterprise Florida, Inc., shall fully comply with the 309 performance measures, standards, and sanctions in its contracts 310 with the officeof Tourism, Trade, and Economic Development311 under s. 14.2015(2)(h) and (7). The officeof Tourism, Trade,312and Economic Developmentshall ensure, to the maximum extent 313 possible, that the contract performance measures are consistent 314 with performance measures that the office is required to develop 315 and track under performance-based program budgeting. 316 (7) As part of the annual report required under s. 288.906, 317 Enterprise Florida, Inc., shall provide the Legislature with 318 information quantifying the return on the public’s investment 319return-on-investmentas described in this sectionfor fiscal320year 1997-1998 and each subsequent fiscal year.The annual321report shall also include the results of a customer-satisfaction322survey of businesses served, as well as the lead economic323development staff person of each organization that is a primary324partner.325 (8) Enterprise Florida, Inc., in consultation with the 326 Office of Economic and Demographic ResearchProgram Policy327Analysis and Government Accountability, shall hire an economic 328 analysis firm to assist in the development ofdevelopthe 329 methodology for establishing and reporting economic benefits 330return-on-investmentand in-kind contributions as described in 331 this sectionand shall hire a firm experienced in survey332research to develop, analyze, and report on the results of the333customer-satisfaction survey. The Office of Economic and 334 Demographic ResearchProgram Policy Analysis and Government335Accountabilityshall review and offer feedback on the 336 methodology before it is implemented. 337 Section 6. Section 288.906, Florida Statutes, is amended to 338 read: 339 288.906 Annual report of Enterprise Florida, Inc.; audits. 340 Prior to December 1 of each year, Enterprise Florida, Inc., 341 shall submit to the Governor, the President of the Senate, the 342 Speaker of the House of Representatives, the Senate Minority 343 Leader, and the House Minority Leader a complete and detailed 344 report including, but not limited to: 345 (1) A description of the operations and accomplishments of 346 Enterprise Florida, Inc., and its boards and advisory committees 347 or similar groups created by Enterprise Florida, Inc., and an 348 identification of any major trends, initiatives, or developments 349 affecting the performance of any program or activity. 350 (2) An evaluation of progress towards achieving 351 organizational goals and specific performance outcomes, both 352 short-term and long-term, established pursuant to s. 288.905. 353 (3) Methods for implementing and funding the operations of 354 Enterprise Florida, Inc., and its boards, including the private 355 sector support required under s. 288.90151. 356 (4) A description of the operations and accomplishments of 357 Enterprise Florida, Inc., and its boards with respect to 358 aggressively marketing Florida’s rural communities and 359 distressed urban communities as locations for potential new 360 investment and job creation, aggressively assisting in the 361 creation, retention, and expansion of existing businesses and 362 job growth in these communities, and aggressively assisting 363 these communities in the identification and development of new 364 economic development opportunities. 365 (5) A description and evaluation of the operations and 366 accomplishments of Enterprise Florida, Inc., and its boards with 367 respect to interaction with local and private economic 368 development organizations, including theanidentification of 369 each organization that is a primary partner and any specific 370 programs or activities thatwhichpromoted the activities of 371 such organizations and an identification of any specific 372 programs or activities thatwhichpromoted a comprehensive and 373 coordinated approach to economic development in this state. 374 (6) An assessment of job creation that directly benefits 375 participants in the welfare transition program. 376 (7) The annual report shall also include the results of a 377 customer-satisfaction survey of businesses served. Enterprise 378 Florida, Inc., shall hire a firm experienced in survey research 379 to develop, analyze, and report on the results of the customer 380 satisfaction survey. 381 (8)(7)An annual compliance and financial audit of accounts 382 and records by an independent certified public accountant at the 383 end of its most recent fiscal year performed in accordance with 384 rules adopted by the Auditor General. 385 386 The detailed report required by this sectionsubsectionshall 387 also include the information identified in subsections (1)-(8) 388(1)-(7), if applicable, for any board established within the 389 corporate structure of Enterprise Florida, Inc. 390 Section 7. Section 288.907, Florida Statutes, is created to 391 read: 392 288.907 Annual incentives report by Enterprise Florida, 393 Inc.— 394 (1) In addition to the annual report required under s. 395 288.906, Enterprise Florida, Inc., by December 30 of each year, 396 shall provide the Governor, the President of the Senate, and the 397 Speaker of the House of Representatives a detailed incentives 398 report quantifying the economic benefits for each of the 399 following economic development incentive programs recommended by 400 Enterprise Florida, Inc., in its recruitment efforts: the 401 Qualified Target Industry Tax Refund Program, the Quick Action 402 Closing Fund, the Qualified Defense Contractor and Space Flight 403 Business Tax Refund Program, the High-Impact Business incentive, 404 the Capital Investment Tax Credit Program, the Brownfield 405 Redevelopment Bonus Refunds incentive, and the Economic 406 Development Transportation grant program. 407 (a) The annual incentives report must include for each 408 incentive program: 409 1. A brief description of the incentive program. 410 2. The amount of awards granted, by year, since inception. 411 3. Beginning in 2015, the economic benefits, as defined in 412 s. 288.005(1), based on the actual amount of private capital 413 invested, actual number of jobs created, and actual wages paid 414 for incentive agreements completed during the previous 3 years. 415 4. Beginning in 2015, the report shall also include the 416 actual amount of private capital invested, actual number of jobs 417 created, and actual wages paid for incentive agreements 418 completed during the previous 3 years for each target industry 419 sector. 420 (b) For projects completed during the previous state fiscal 421 year, the report must include: 422 1. The number of economic development incentive 423 applications received. 424 2. The number of recommendations made to the office by 425 Enterprise Florida, Inc., including the number recommended for 426 approval and the number recommended for denial. 427 3. The number of final decisions issued by the office for 428 approval and for denial. 429 4. The projects for which a tax refund, tax credit, or cash 430 grant agreement was executed, identifying: 431 a. The number of jobs committed to be created. 432 b. The amount of capital investments committed to be made. 433 c. The annual average wage committed to be paid. 434 d. The amount of state economic development incentives 435 committed to the project from each incentive program under the 436 project’s terms of agreement with the office. 437 (c) For economic development projects that received tax 438 refunds, tax credits, or cash grants under the terms of an 439 agreement for incentives, the report must identify: 440 1. The number of jobs actually created. 441 2. The amount of capital investments actually made. 442 3. The annual average wage paid. 443 (d) For a project receiving economic development incentives 444 approved by the office and receiving federal or local 445 incentives, the report must include a description of the federal 446 or local incentives, if available. 447 (e) The report must state the number of withdrawn or 448 terminated projects that did not fulfill the terms of their 449 agreements with the office and consequently are not receiving 450 incentives. 451 (f) The report must include an analysis of the economic 452 benefits, as defined in s. 288.005(1), of tax refunds, tax 453 credits, or other payments made to projects locating or 454 expanding in state enterprise zones, rural communities, 455 brownfield areas, or distressed urban communities. 456 (g) The report must identify the target industry businesses 457 and high-impact businesses. 458 (h) The report must describe the trends relating to 459 business interest in, and usage of, the various incentives, and 460 the number of minority- or woman-owned businesses receiving 461 incentives. 462 (2) The office shall assist Enterprise Florida, Inc., in 463 the preparation of the annual incentives report. 464 Section 8. Section 288.911, Florida Statutes, is amended to 465 read: 466 288.911 Creation and implementation of a marketing and 467 image campaign.— 468 (1) Enterprise Florida, Inc., in cooperationcollaboration469 with VISIT Florida and the private sector, shall create a 470 marketing campaign to help attract, develop, and retain target 471 industry businesses and high-impact businesses toinformation472technology businesses inthis state. The campaign must be 473 coordinated with any existing economic development promotion 474 efforts in this state, and shall be jointly funded from private 475 and public resources. 476 (2) The message of the campaign shall be to increase 477 national and international awareness of this state as a state 478 ideally suited for the successful advancement of businesses 479 within the state’s target industries and high-impact industries 480the information technology business sector. Marketing strategies 481 shall include development of promotional materials, Internet and 482 print advertising, public relations and media placement, trade 483 show attendance at information technology events, and 484 appropriate followup activities. Efforts to promote this state 485as a high-technology business leadermust include identification 486 and coordination of existing clusters of target industry 487 businesses and high-impact businesses andbusiness technology488resources,partnerships with economic development organizations 489 and private sector businesses, continued retention and growth of490businesses based in this state that produce high-technology491products or use high-technology skills for manufacturing, and492recruitment of new business in such area. 493 Section 9. Inventory of communities seeking to recruit 494 businesses.—By September 30 of each year, a county or 495 municipality that has a population of at least 25,000 or its 496 local economic development organization must submit to 497 Enterprise Florida, Inc., a brief overview of the strengths, 498 services, and economic development incentives that its community 499 offers. The local government or its local economic development 500 organization must also identify any industries that it is 501 encouraging to locate or relocate to its area. 502 Section 10. Section 288.7771, Florida Statutes, is amended 503 to read: 504 288.7771 Annual report of Florida Export Finance 505 Corporation.—The corporation shall annually prepare and submit 506 to Enterprise Florida, Inc., for inclusion in its annual report 507 required by s. 288.907s.288.095a complete and detailed report 508 setting forth: 509 (1) The report required in s. 288.776(3). 510 (2) Its assets and liabilities at the end of its most 511 recent fiscal year. 512 Section 11. This act shall take effect July 1, 2011.