Bill Text: FL S1856 | 2010 | Regular Session | Comm Sub

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Bill Title: Qualified Target Industry Tax Refund Program [WPSC]

Spectrum: Unknown

Status: (N/A - Dead) 2010-04-28 - Placed on Special Order Calendar; Read 2nd time -SJ 00955; Substituted CS/HB 7109 -SJ 00955; Laid on Table, companion bill(s) passed, see CS/HB 7109 (Ch. 2010-136), CS/SB 1752 (Ch. 2010-147) -SJ 00955 [S1856 Detail]

Download: Florida-2010-S1856-Comm_Sub.html

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Florida Senate - 2010                      CS for CS for SB 1856 
 
By the Committees on Finance and Tax; Commerce; and Commerce 
593-04318-10                                          20101856c2 
1                        A bill to be entitled 
2         An act relating to the qualified target industry tax 
3         refund program; amending s. 288.106, F.S.; providing 
4         legislative findings and declarations for the tax 
5         refund program for qualified target industry 
6         businesses; revising the definitions of terms 
7         applicable to the program; establishing a schedule for 
8         the Office of Tourism, Trade, and Economic Development 
9         to review and revise the list of target industries and 
10         submit a report to the Governor and Legislature; 
11         revising the criteria for the Office of Tourism, 
12         Trade, and Economic Development and Enterprise 
13         Florida, Inc., to use in identifying target industry 
14         businesses; conforming cross-references to changes 
15         made by the act; requiring the Office of Tourism, 
16         Trade, and Economic Development to consider the 
17         state’s return on investment in evaluating applicants 
18         for the tax refund program; requiring the Office of 
19         Economic and Demographic Research to submit reports to 
20         the Legislature evaluating the calculation of the 
21         state’s return on investment for the program; 
22         requiring that additional provisions be included in 
23         tax refund agreements; redesignating the economic 
24         stimulus exemption as the “economic recovery 
25         extension”; extending the date by which a qualified 
26         target industry business may request an economic 
27         recovery extension; authorizing the Office of Tourism, 
28         Trade, and Economic Development to waive the 
29         requirement for a business to annually provide proof 
30         of taxes paid if the business provides proof that it 
31         has paid certain taxes in amounts at least equal to 
32         the total amount of refunds for which the business is 
33         eligible; requiring the Office of Tourism, Trade, and 
34         Economic Development to conduct a review of certain 
35         qualified target industry businesses that have failed 
36         to complete their tax refund agreements and submit a 
37         report of its findings and recommendations to the 
38         Governor, the President of the Senate, and the Speaker 
39         of the House of Representatives; extending the date by 
40         which businesses may apply to participate in the tax 
41         refund program for qualified target industry 
42         businesses; amending ss. 288.107 and 290.00677, F.S.; 
43         conforming cross-references to changes made by the 
44         act; providing an effective date. 
45 
46  Be It Enacted by the Legislature of the State of Florida: 
47 
48         Section 1. Section 288.106, Florida Statutes, is amended, 
49  and subsection (2) of that section is reordered, to read: 
50         288.106 Tax refund program for qualified target industry 
51  businesses.— 
52         (1) LEGISLATIVE FINDINGS AND DECLARATIONS.—The Legislature 
53  finds that retaining and expanding existing businesses in 
54  Florida, encouraging the creation of new businesses in Florida, 
55  attracting new businesses from out of state, and generally 
56  providing conditions favorable for the growth of target 
57  industries creates high-quality, high-wage employment 
58  opportunities for the residents of this state and strengthens 
59  Florida’s economic foundation. The Legislature also finds that 
60  incentives that are narrowly focused in application and scope 
61  tend to be more effective at achieving the state’s economic 
62  development goals. Further, the Legislature finds that higher 
63  wage jobs reduce the state’s share of hidden costs such as 
64  public assistance and subsidized health care associated with 
65  low-wage jobs. Therefore, the Legislature declares that it is 
66  the policy of this state to encourage the growth of higher-wage 
67  jobs and a diverse economic base by providing state tax refunds 
68  to qualified target industry businesses that originate or expand 
69  in this state or that relocate to this state. 
70         (2)(1) DEFINITIONS.—As used in this section: 
71         (a) “Account” means the Economic Development Incentives 
72  Account within the Economic Development Trust Fund established 
73  under s. 288.095. 
74         (c)(b) “Average private sector wage in the area” means the 
75  statewide private sector average wage or the average of all 
76  private sector wages and salaries in the county or in the 
77  standard metropolitan area in which the business is located. 
78         (d)(c) “Business” means an employing unit, as defined in s. 
79  443.036, which is registered for unemployment compensation 
80  purposes with the state agency providing unemployment tax 
81  collection services under contract with the Agency for Workforce 
82  Innovation through an interagency agreement pursuant to s. 
83  443.1316, or a subcategory or division of an employing unit 
84  which is accepted by the state agency providing unemployment tax 
85  collection services as a reporting unit. 
86         (e)(d) “Corporate headquarters business” means an 
87  international, national, or regional headquarters office of a 
88  multinational or multistate business enterprise or national 
89  trade association, whether separate from or connected with other 
90  facilities used by such business. 
91         (n)(e) “Office” means the Office of Tourism, Trade, and 
92  Economic Development. 
93         (g)(f) “Enterprise zone” means an area designated as an 
94  enterprise zone pursuant to s. 290.0065. 
95         (h)(g) “Expansion of an existing business” means the 
96  expansion of an existing Florida business by or through 
97  additions to real and personal property, resulting in a net 
98  increase in employment of not less than 10 percent at such 
99  business. 
100         (i)(h) “Fiscal year” means the fiscal year of the state. 
101         (j)(i) “Jobs” means full-time equivalent positions, 
102  including, not limited to, positions obtained from a temporary 
103  employment agency or employee leasing company or through a union 
104  agreement or co-employment under a professional employer 
105  organization agreement, which result as that term is consistent 
106  with terms used by the Agency for Workforce Innovation and the 
107  United States Department of Labor for purposes of unemployment 
108  compensation tax administration and employment estimation, 
109  resulting directly from a project in this state. The term does 
110  not include temporary construction jobs involved with the 
111  construction of facilities for the project or any jobs 
112  previously included in any application for tax refunds under s. 
113  288.1045 or this section. 
114         (k)(j) “Local financial support” means funding from local 
115  sources, public or private, which is paid to the Economic 
116  Development Trust Fund and which is equal to 20 percent of the 
117  annual tax refund for a qualified target industry business. A 
118  qualified target industry business may not provide, directly or 
119  indirectly, more than 5 percent of such funding in any fiscal 
120  year. The sources of such funding may not include, directly or 
121  indirectly, state funds appropriated from the General Revenue 
122  Fund or any state trust fund, excluding tax revenues shared with 
123  local governments pursuant to law. 
124         (l)(k) “Local financial support exemption option” means the 
125  option to exercise an exemption from the local financial support 
126  requirement available to any applicant whose project is located 
127  in a brownfield area or a rural community county with a 
128  population of 75,000 or fewer or a county with a population of 
129  125,000 or fewer which is contiguous to a county with a 
130  population of 75,000 or fewer. Any applicant that exercises this 
131  option is shall not be eligible for more than 80 percent of the 
132  total tax refunds allowed such applicant under this section. 
133         (m)(l) “New business” means a business that applies for the 
134  qualified target industry refund program before beginning 
135  operations which heretofore did not exist in this state, first 
136  beginning operations on a site located in this state and is a 
137  clearly separate legal entity from any other commercial or 
138  industrial operations owned by the same business. 
139         (o)(m) “Project” means the creation of a new business or 
140  expansion of an existing business. 
141         (f)(n) “Director” means the Director of the Office of 
142  Tourism, Trade, and Economic Development. 
143         (t)(o) “Target industry business” means a corporate 
144  headquarters business or any business that is engaged in one of 
145  the target industries identified pursuant to the following 
146  criteria developed by the office in consultation with Enterprise 
147  Florida, Inc.: 
148         1. Future growth.—Industry forecasts should indicate strong 
149  expectation for future growth in both employment and output, 
150  according to the most recent available data. Preference Special 
151  consideration should be given to businesses that export goods or 
152  services Florida’s growing access to international markets or to 
153  businesses that replace domestic and international replacing 
154  imports of goods or services. 
155         2. Stability.—The industry should not be subject to 
156  periodic layoffs, whether due to seasonality or sensitivity to 
157  volatile economic variables such as weather. The industry should 
158  also be relatively resistant to recession, so that the demand 
159  for products of this industry is not typically necessarily 
160  subject to decline during an economic downturn. 
161         3. High wage.—The industry should pay relatively high wages 
162  compared to statewide or area averages. 
163         4. Market and resource independent.—The location of 
164  industry businesses should not be dependent on Florida markets 
165  or resources as indicated by industry analysis, with the 
166  exception of businesses in the renewable-energy industry. 
167  Special consideration should be given to the development of 
168  strong industrial clusters which include defense and homeland 
169  security businesses. 
170         5. Industrial base diversification and strengthening.—The 
171  industry should contribute toward expanding or diversifying the 
172  state’s or area’s economic base, as indicated by analysis of 
173  employment and output shares compared to national and regional 
174  trends. Preference Special consideration should be given to 
175  industries that strengthen regional economies by adding value to 
176  basic products or building regional industrial clusters as 
177  indicated by industry analysis. Additionally, preference should 
178  be given to the development of strong industrial clusters that 
179  include defense and homeland security businesses. 
180         6. Economic benefits.—The industry is expected to should 
181  have strong positive impacts on or benefits to the state or and 
182  regional economies. 
183 
184  The term does office, in consultation with Enterprise Florida, 
185  Inc., shall develop a list of such target industries annually 
186  and submit such list as part of the final agency legislative 
187  budget request submitted pursuant to s. 216.023(1). A target 
188  industry business may not include any business industry engaged 
189  in retail industry activities; any electrical utility company; 
190  any phosphate or other solid minerals severance, mining, or 
191  processing operation; any oil or gas exploration or production 
192  operation; or any business firm subject to regulation by the 
193  Division of Hotels and Restaurants of the Department of Business 
194  and Professional Regulation. By January 1 of every third year, 
195  beginning January 1, 2011, the office, in consultation with 
196  Enterprise Florida, Inc., economic development organizations, 
197  the State University System, local governments, employee and 
198  employer organizations, market analysts, and economists, shall 
199  review and, as appropriate, revise the list of such target 
200  industries and submit the list to the Governor, the President of 
201  the Senate, and the Speaker of the House of Representatives. 
202         (u)(p) “Taxable year” means taxable year as defined in s. 
203  220.03(1)(y). 
204         (p)(q) “Qualified target industry business” means a target 
205  industry business that has been approved by the director to be 
206  eligible for tax refunds pursuant to this section. 
207         (q) “Return on investment” means the gain in state revenues 
208  as a percentage of the state’s investment. The state’s 
209  investment includes state grants, tax exemptions, tax refunds, 
210  tax credits, and other state incentives. Return on investment is 
211  expressed mathematically as follows: 
212 
213      Return on investment = (gain in state revenues - state’s 
214                   investment)/state’s investment 
215 
216         (r) “Rural county” means a county with a population of 
217  75,000 or fewer or a county with a population of 100,000 or 
218  fewer which is contiguous to a county with a population of 
219  75,000 or fewer. 
220         (r)(s) “Rural city” means a city having with a population 
221  of 10,000 or fewer less, or a city having with a population of 
222  greater than 10,000 but fewer less than 20,000 which has been 
223  determined by the office of Tourism, Trade, and Economic 
224  Development to have economic characteristics such as, but not 
225  limited to, a significant percentage of residents on public 
226  assistance, a significant percentage of residents with income 
227  below the poverty level, or a significant percentage of the 
228  city’s employment base in agriculture-related industries. 
229         (s)(t) “Rural community” means: 
230         1. A county having with a population of 75,000 or fewer. 
231         2. A county having with a population of 125,000 or fewer 
232  which is contiguous to a county having with a population of 
233  75,000 or fewer. 
234         3. A municipality within a county described in subparagraph 
235  1. or subparagraph 2. 
236 
237  For purposes of this paragraph, population shall be determined 
238  in accordance with the most recent official estimate pursuant to 
239  s. 186.901. 
240         (b)(u) “Authorized local economic development agency” means 
241  a any public or private entity, including those defined in s. 
242  288.075, authorized by a county or municipality to promote the 
243  general business or industrial interests of that county or 
244  municipality. 
245         (3)(2) TAX REFUND; ELIGIBLE AMOUNTS.— 
246         (a) There shall be allowed, from the account, a refund to a 
247  qualified target industry business for the amount of eligible 
248  taxes certified by the director which were paid by the such 
249  business. The total amount of refunds for all fiscal years for 
250  each qualified target industry business must be determined 
251  pursuant to subsection (4) (3). The annual amount of a refund to 
252  a qualified target industry business must be determined pursuant 
253  to subsection (6) (5). 
254         (b)1. Upon approval by the director, a qualified target 
255  industry business shall be allowed tax refund payments equal to 
256  $3,000 times the number of jobs specified in the tax refund 
257  agreement under subparagraph (5)(a)1. (4)(a)1., or equal to 
258  $6,000 times the number of jobs if the project is located in a 
259  rural county or an enterprise zone. 
260         2. Further, A qualified target industry business shall be 
261  allowed additional tax refund payments equal to $1,000 times the 
262  number of jobs specified in the tax refund agreement under 
263  subparagraph (5)(a)1. (4)(a)1., if such jobs pay an annual 
264  average wage of at least 150 percent of the average area private 
265  sector wage in the area, or equal to $2,000 times the number of 
266  jobs if such jobs pay an annual average area wage of at least 
267  200 percent of the average area private sector wage in the area. 
268         (c) A qualified target industry business may not receive 
269  refund payments of more than 25 percent of the total tax refunds 
270  specified in the tax refund agreement under subparagraph 
271  (5)(a)1. (4)(a)1. in any fiscal year. Further, a qualified 
272  target industry business may not receive more than $1.5 million 
273  in refunds under this section in any single fiscal year, or more 
274  than $2.5 million in any single fiscal year if the project is 
275  located in an enterprise zone. A qualified target industry 
276  business may not receive more than $5 million in refund payments 
277  under this section in all fiscal years, or more than $7.5 
278  million if the project is located in an enterprise zone.Funds 
279  made available pursuant to this section may not be expended in 
280  connection with the relocation of a business from one community 
281  to another community in this state unless the Office of Tourism, 
282  Trade, and Economic Development determines that without such 
283  relocation the business will move outside this state or 
284  determines that the business has a compelling economic rationale 
285  for the relocation and that the relocation will create 
286  additional jobs. 
287         (d)(c) After entering into a tax refund agreement under 
288  subsection (5) (4), a qualified target industry business may: 
289         1. Receive refunds from the account for the following taxes 
290  due and paid by that business beginning with the first taxable 
291  year of the business which begins after entering into the 
292  agreement: 
293         a. Corporate income taxes under chapter 220. 
294         b. Insurance premium tax under s. 624.509. 
295         2. Receive refunds from the account for the following taxes 
296  due and paid by that business after entering into the agreement: 
297         a. Taxes on sales, use, and other transactions under 
298  chapter 212. 
299         b. Intangible personal property taxes under chapter 199. 
300         c. Emergency excise taxes under chapter 221. 
301         d. Excise taxes on documents under chapter 201. 
302         e. Ad valorem taxes paid, as defined in s. 220.03(1). 
303         f. State communications services taxes administered under 
304  chapter 202. This provision does not apply to the gross receipts 
305  tax imposed under chapter 203 and administered under chapter 202 
306  or the local communications services tax authorized under s. 
307  202.19. 
308 
309  The addition of state communications services taxes administered 
310  under chapter 202 is remedial in nature and retroactive to 
311  October 1, 2001. The office may make supplemental tax refund 
312  payments to allow for tax refunds for communications services 
313  taxes paid by an eligible qualified target industry business 
314  after October 1, 2001. 
315         (e)(d) However, a qualified target industry business may 
316  not receive a refund under this section for any amount of 
317  credit, refund, or exemption granted to that business for any of 
318  the such taxes listed in paragraph (d). If a refund for such 
319  taxes is provided by the office, which taxes are subsequently 
320  adjusted by the application of any credit, refund, or exemption 
321  granted to the qualified target industry business other than as 
322  provided in this section, the business shall reimburse the 
323  account for the amount of that credit, refund, or exemption. A 
324  qualified target industry business shall notify and tender 
325  payment to the office within 20 days after receiving any credit, 
326  refund, or exemption other than one provided in this section. 
327         (f) Refunds made available pursuant to this section may not 
328  be expended in connection with the relocation of a business from 
329  one community to another community in this state unless the 
330  office determines that without such relocation the business will 
331  move outside this state, or determines that the business has a 
332  compelling economic rationale for the relocation and that the 
333  relocation will create additional jobs. 
334         (g)(e) A qualified target industry business that 
335  fraudulently claims a refund under this section: 
336         1. Is liable for repayment of the amount of the refund to 
337  the account, plus a mandatory penalty in the amount of 200 
338  percent of the tax refund which shall be deposited into the 
339  General Revenue Fund. 
340         2. Commits Is guilty of a felony of the third degree, 
341  punishable as provided in s. 775.082, s. 775.083, or s. 775.084. 
342         (4)(3) APPLICATION AND APPROVAL PROCESS.— 
343         (a) To apply for certification as a qualified target 
344  industry business under this section, the business must file an 
345  application with the office before the business decides has made 
346  the decision to locate a new business in this state or before 
347  the business decides had made the decision to expand its an 
348  existing operations business in this state. The application must 
349  shall include, but need is not be limited to, the following 
350  information: 
351         1. The applicant’s federal employer identification number 
352  and, if applicable, the applicant’s state sales tax registration 
353  number. 
354         2. The proposed permanent location of the applicant’s 
355  facility in this state at which the project is or is to be 
356  located. 
357         3. A description of the type of business activity or 
358  product covered by the project, including a minimum of a five 
359  digit NAICS code for all activities included in the project. As 
360  used in this paragraph, “NAICS” means those classifications 
361  contained in the North American Industry Classification System, 
362  as published in 2007 by the Office of Management and Budget, 
363  Executive Office of the President, and updated periodically. 
364         4. The proposed number of net new full-time equivalent 
365  Florida jobs at the qualified target industry business as of 
366  December 31 of each year included in the project and the average 
367  wage of those jobs. If more than one type of business activity 
368  or product is included in the project, the number of jobs and 
369  average wage for those jobs must be separately stated for each 
370  type of business activity or product. 
371         5. The total number of full-time equivalent employees 
372  employed by the applicant in this state, if applicable. 
373         6. The anticipated commencement date of the project. 
374         7. A brief statement explaining concerning the role that 
375  the estimated tax refunds to be requested will play in the 
376  decision of the applicant to locate or expand in this state. 
377         8. An estimate of the proportion of the sales resulting 
378  from the project that will be made outside this state. 
379         9. A resolution adopted by the governing board of the 
380  county or municipality in which the project will be located, 
381  which resolution recommends that the project certain types of 
382  businesses be approved as a qualified target industry business 
383  and specifies states that the commitments of local financial 
384  support necessary for the target industry business exist. In 
385  advance of the passage of such resolution, the office may also 
386  accept an official letter from an authorized local economic 
387  development agency that endorses the proposed target industry 
388  project and pledges that sources of local financial support for 
389  such project exist. For the purposes of making pledges of local 
390  financial support under this subsection, the authorized local 
391  economic development agency shall be officially designated by 
392  the passage of a one-time resolution by the local governing 
393  authority. 
394         10. Any additional information requested by the office. 
395         (b) To qualify for review by the office, the application of 
396  a target industry business must, at a minimum, establish the 
397  following to the satisfaction of the office: 
398         1.a. The jobs proposed to be created provided under the 
399  application, pursuant to subparagraph (a)4., must pay an 
400  estimated annual average wage equaling at least 115 percent of 
401  the average private sector wage in the area where the business 
402  is to be located or the statewide private sector average wage. 
403  In determining the average annual wage, the office shall include 
404  only new proposed jobs, and wages for existing jobs shall be 
405  excluded from this calculation. 
406         b. The office may waive the average wage requirement at the 
407  request of the local governing body recommending the project and 
408  Enterprise Florida, Inc. The director may waive the wage 
409  requirement may only be waived for a project located in a 
410  brownfield area designated under s. 376.80 or in a rural city, 
411  rural community, or county, or in an enterprise zone and only if 
412  when the merits of the individual project or the specific 
413  circumstances in the community in relationship to the project 
414  warrant such action. If the local governing body and Enterprise 
415  Florida, Inc., make such a recommendation, it must be 
416  transmitted in writing and the specific justification for the 
417  waiver recommendation must be explained. If the director elects 
418  to waive the wage requirement, the waiver must be stated in 
419  writing and the reasons for granting the waiver must be 
420  explained. 
421         2. The target industry business’s project must result in 
422  the creation of at least 10 jobs at the such project and, if an 
423  expansion of an existing business, must result in an a net 
424  increase in employment of at least 10 percent at the business. 
425  Notwithstanding the definition of the term “expansion of an 
426  existing business” in paragraph (1)(g), At the request of the 
427  local governing body recommending the project and Enterprise 
428  Florida, Inc., the office may waive this requirement for a 
429  business in a rural community or enterprise zone define an 
430  “expansion of an existing business” in a rural community or an 
431  enterprise zone as the expansion of a business resulting in a 
432  net increase in employment of less than 10 percent at such 
433  business if the merits of the individual project or the specific 
434  circumstances in the community in relationship to the project 
435  warrant such action. If the local governing body and Enterprise 
436  Florida, Inc., make such a request, the request must be 
437  transmitted in writing and the specific justification for the 
438  request must be explained. If the director elects to grant the 
439  request, the grant must be stated in writing and the reason for 
440  granting the request must be explained. 
441         3. The business activity or product for the applicant’s 
442  project is within an industry or industries that have been 
443  identified by the office as a target industry business to be 
444  high-value-added industries that contributes contribute to the 
445  area and to the economic growth of the state and the region in 
446  which it is located, that produces produce a higher standard of 
447  living for residents of this state in the new global economy, or 
448  that can be shown to make an equivalent contribution to the area 
449  and state’s economic progress. The director must approve 
450  requests to waive the wage requirement for brownfield areas 
451  designated under s. 376.80 unless it is demonstrated that such 
452  action is not in the public interest. 
453         (c) Each application meeting the requirements of paragraph 
454  (b) must be submitted to the office for determination of 
455  eligibility. The office shall review and evaluate each 
456  application based on, but not limited to, the following 
457  criteria: 
458         1. Expected contributions to the state economy, consistent 
459  with the state strategic economic development plan adopted by 
460  Enterprise Florida, Inc., taking into account the long-term 
461  effects of the project and of the applicant on the state 
462  economy. 
463         2. The return on investment of the proposed award of tax 
464  refunds under this section and the return on investment for 
465  state incentives proposed for the project. The Office of 
466  Economic and Demographic Research shall review and evaluate the 
467  methodology and model used to calculate the return on investment 
468  and report its findings by September 1 of every third year, 
469  beginning September 1, 2010, to the President of the Senate and 
470  the Speaker of the House of Representatives economic benefit of 
471  the jobs created by the project in this state, taking into 
472  account the cost and average wage of each job created. 
473         3. The amount of capital investment to be made by the 
474  applicant in this state. 
475         4. The local financial commitment and support for the 
476  project. 
477         5. The effect of the project on the unemployment rate in 
478  local community, taking into account the unemployment rate for 
479  the county where the project will be located. 
480         6. The effect of the award any tax refunds granted pursuant 
481  to this section on the viability of the project and the 
482  probability that the project would will be undertaken in this 
483  state if such tax refunds are granted to the applicant, taking 
484  into account the expected long-term commitment of the applicant 
485  to economic growth and employment in this state. 
486         7. The expected long-term commitment of the applicant to 
487  economic growth and employment to this state resulting from the 
488  project. 
489         8. A review of the business’s past activities in this state 
490  or other states, including whether such business has been 
491  subjected to criminal or civil fines and penalties. This 
492  subparagraph does not require the disclosure of confidential 
493  information. 
494         (d) Applications shall be reviewed and certified pursuant 
495  to s. 288.061. The office shall include in its review 
496  projections of the tax refunds the business would be eligible to 
497  receive in each fiscal year based on the creation and 
498  maintenance of the net new Florida jobs specified in 
499  subparagraph (a)4. as of December 31 of the preceding state 
500  fiscal year. If appropriate, the director shall enter into a 
501  written agreement with the qualified target industry business 
502  pursuant to subsection (5) (4). 
503         (e) The director may not certify any target industry 
504  business as a qualified target industry business if the value of 
505  tax refunds to be included in that letter of certification 
506  exceeds the available amount of authority to certify new 
507  businesses as determined in s. 288.095(3). However, if the 
508  commitments of local financial support represent less than 20 
509  percent of the eligible tax refund payments, or to otherwise 
510  preserve the viability and fiscal integrity of the program, the 
511  director may certify a qualified target industry business to 
512  receive tax refund payments of less than the allowable amounts 
513  specified in paragraph (3)(b) (2)(b). A letter of certification 
514  that approves an application must specify the maximum amount of 
515  tax refund that will be available to the qualified industry 
516  business in each fiscal year and the total amount of tax refunds 
517  that will be available to the business for all fiscal years. 
518         (f) This section does not create a presumption that an 
519  applicant shall receive any tax refunds under this section. 
520  However, the office may issue nonbinding opinion letters, upon 
521  the request of prospective applicants, as to the applicants’ 
522  eligibility and the potential amount of refunds. 
523         (5)(4) TAX REFUND AGREEMENT.— 
524         (a) Each qualified target industry business must enter into 
525  a written agreement with the office which specifies, at a 
526  minimum: 
527         1. The total number of full-time equivalent jobs in this 
528  state that will be dedicated to the project, the average wage of 
529  those jobs, the definitions that will apply for measuring the 
530  achievement of these terms during the pendency of the agreement, 
531  and a time schedule or plan for when such jobs will be in place 
532  and active in this state. 
533         2. The maximum amount of tax refunds which the qualified 
534  target industry business is eligible to receive on the project 
535  and the maximum amount of a tax refund that the qualified target 
536  industry business is eligible to receive for each fiscal year, 
537  based on the job creation and maintenance schedule specified in 
538  subparagraph 1. 
539         3. That the office may review and verify the financial and 
540  personnel records of the qualified target industry business to 
541  ascertain whether that business is in compliance with this 
542  section. 
543         4. The date by which, in each fiscal year, the qualified 
544  target industry business may file a claim under subsection (6) 
545  (5) to be considered to receive a tax refund in the following 
546  fiscal year. 
547         5. That local financial support will be annually available 
548  and will be paid to the account. The office director may not 
549  enter into a written agreement with a qualified target industry 
550  business if the local financial support resolution is not passed 
551  by the local governing body authority within 90 days after the 
552  office he or she has issued the letter of certification under 
553  subsection (4) (3). 
554         6. That the office may conduct a review of the business to 
555  evaluate whether the business is continuing to contribute to the 
556  area’s or state’s economy. 
557         7. That in the event the business does not complete the 
558  agreement, the business shall provide the office with the 
559  reasons the business was unable to complete the agreement. 
560         (b) Compliance with the terms and conditions of the 
561  agreement is a condition precedent for the receipt of a tax 
562  refund each year. The failure to comply with the terms and 
563  conditions of the tax refund agreement results in the loss of 
564  eligibility for receipt of all tax refunds previously authorized 
565  under this section and the revocation by the director of the 
566  certification of the business entity as a qualified target 
567  industry business, unless the business is eligible to receive 
568  and elects to accept a prorated refund under paragraph (6)(e) 
569  (5)(d) or the office grants the business an economic recovery 
570  extension economic-stimulus exemption. 
571         1. A qualified target industry business may submit, in 
572  writing, a request to the office for an economic recovery 
573  extension economic-stimulus exemption. The request must provide 
574  quantitative evidence demonstrating how negative economic 
575  conditions in the business’s industry, the effects of the impact 
576  of a named hurricane or tropical storm, or specific acts of 
577  terrorism affecting the qualified target industry business have 
578  prevented the business from complying with the terms and 
579  conditions of its tax refund agreement. 
580         2. Upon receipt of a request under subparagraph 1., the 
581  director has shall have 45 days to notify the requesting 
582  business, in writing, if its extension exemption has been 
583  granted or denied. In determining if an extension exemption 
584  should be granted, the director shall consider the extent to 
585  which negative economic conditions in the requesting business’s 
586  industry have occurred in the state or the effects of the impact 
587  of a named hurricane or tropical storm or specific acts of 
588  terrorism affecting the qualified target industry business have 
589  prevented the business from complying with the terms and 
590  conditions of its tax refund agreement. The office shall 
591  consider current employment statistics for this state by 
592  industry, including whether the business’s industry had 
593  substantial job loss during the prior year, when determining 
594  whether an extension exemption shall be granted. 
595         3. As a condition for receiving a prorated refund under 
596  paragraph (6)(e) (5)(d) or an economic recovery extension 
597  economic-stimulus exemption under this paragraph, a qualified 
598  target industry business must agree to renegotiate its tax 
599  refund agreement with the office to, at a minimum, ensure that 
600  the terms of the agreement comply with current law and office 
601  procedures governing application for and award of tax refunds. 
602  Upon approving the award of a prorated refund or granting an 
603  economic recovery extension economic-stimulus exemption, the 
604  office shall renegotiate the tax refund agreement with the 
605  business as required by this subparagraph. When amending the 
606  agreement of a business receiving an economic recovery extension 
607  economic-stimulus exemption, the office may extend the duration 
608  of the agreement for a period not to exceed 2 years. 
609         4. A qualified target industry business may submit a 
610  request for an economic recovery extension economic-stimulus 
611  exemption to the office in lieu of any tax refund claim 
612  scheduled to be submitted after January 1, 2009, but before July 
613  1, 2012 2011. 
614         5. A qualified target industry business that receives an 
615  economic recovery extension economic-stimulus exemption may not 
616  receive a tax refund for the period covered by the exemption. 
617         (c) The agreement must be signed by the director and by an 
618  authorized officer of the qualified target industry business 
619  within 120 days after the issuance of the letter of 
620  certification under subsection (4) (3), but not before passage 
621  and receipt of the resolution of local financial support. The 
622  office may grant an extension of this period at the written 
623  request of the qualified target industry business. 
624         (d) The agreement must contain the following legend, 
625  clearly printed on its face in bold type of not less than 10 
626  points in size: “This agreement is neither a general obligation 
627  of the State of Florida, nor is it backed by the full faith and 
628  credit of the State of Florida. Payment of tax refunds is are 
629  conditioned on and subject to specific annual appropriations by 
630  the Florida Legislature of moneys sufficient to pay amounts 
631  authorized in section 288.106, Florida Statutes.” 
632         (6)(5) ANNUAL CLAIM FOR REFUND.— 
633         (a) To be eligible to claim any scheduled tax refund, a 
634  qualified target industry business that has entered into a tax 
635  refund agreement with the office under subsection (5) (4) must 
636  apply by January 31 of each fiscal year to the office for the 
637  tax refund scheduled to be paid from the appropriation for the 
638  fiscal year that begins on July 1 following the January 31 
639  claims-submission date. The office may, upon written request, 
640  grant a 30-day extension of the filing date. 
641         (b) The claim for refund by the qualified target industry 
642  business must include a copy of all receipts pertaining to the 
643  payment of taxes for which the refund is sought and data related 
644  to achievement of each performance item specified in the tax 
645  refund agreement. The amount requested as a tax refund may not 
646  exceed the amount specified for the relevant fiscal year in that 
647  agreement. 
648         (c) If the qualified target industry business provides the 
649  office with proof that in a single year it has paid an amount of 
650  state taxes, from the categories in paragraph (3)(d), which is 
651  at least equal to the total amount of tax refunds it may receive 
652  through successful completion of its qualified target industry 
653  agreement, the office may waive the requirement for proof of 
654  taxes paid in future years. 
655         (d)(c) A tax refund may not be approved for a qualified 
656  target industry business unless the required local financial 
657  support has been paid into the account for that refund. If the 
658  local financial support provided is less than 20 percent of the 
659  approved tax refund, the tax refund must be reduced. In no event 
660  may the tax refund exceed an amount that is equal to 5 times the 
661  amount of the local financial support received. Further, funding 
662  from local sources includes any tax abatement granted to that 
663  business under s. 196.1995 or the appraised market value of 
664  municipal or county land conveyed or provided at a discount to 
665  that business. The amount of any tax refund for such business 
666  approved under this section must be reduced by the amount of any 
667  such tax abatement granted or the value of the land granted; and 
668  the limitations in subsection (3) (2) and paragraph (4)(e) 
669  (3)(e) must be reduced by the amount of any such tax abatement 
670  or the value of the land granted. A report listing all sources 
671  of the local financial support shall be provided to the office 
672  when such support is paid to the account. 
673         (e)(d) A prorated tax refund, less a 5 percent 5-percent 
674  penalty, shall be approved for a qualified target industry 
675  business if provided all other applicable requirements have been 
676  satisfied and the business proves to the satisfaction of the 
677  director that: 
678         1. It has achieved at least 80 percent of its projected 
679  employment; and that 
680         2. The average wage paid by the business is at least 90 
681  percent of the average wage specified in the tax refund 
682  agreement, but in no case less than 115 percent of the average 
683  private sector wage in the area available at the time of 
684  certification, or 150 percent or 200 percent of the average 
685  private sector wage if the business requested the additional 
686  per-job tax refund authorized in paragraph (3)(b) (2)(b) for 
687  wages above those levels. 
688 
689  The prorated tax refund shall be calculated by multiplying the 
690  tax refund amount for which the qualified target industry 
691  business would have been eligible, if all applicable 
692  requirements had been satisfied, by the percentage of the 
693  average employment specified in the tax refund agreement which 
694  was achieved, and by the percentage of the average wages 
695  specified in the tax refund agreement which was achieved. 
696         (f)(e) The director, with such assistance as may be 
697  required from the office, the Department of Revenue, or the 
698  Agency for Workforce Innovation, shall, by June 30 following the 
699  scheduled date for submission of the tax refund claim, specify 
700  by written order the approval or disapproval of the tax refund 
701  claim and, if approved, the amount of the tax refund that is 
702  authorized to be paid to the qualified target industry business 
703  for the annual tax refund. The office may grant an extension of 
704  this date on the request of the qualified target industry 
705  business for the purpose of filing additional information in 
706  support of the claim. 
707         (g)(f) The total amount of tax refund claims approved by 
708  the director under this section in any fiscal year must not 
709  exceed the amount authorized under s. 288.095(3). 
710         (h)(g) This section does not create a presumption that a 
711  tax refund claim will be approved and paid. 
712         (i)(h) Upon approval of the tax refund under paragraphs 
713  (c), (d), and (e), and (f), the Chief Financial Officer shall 
714  issue a warrant for the amount specified in the written order. 
715  If the written order is appealed, the Chief Financial Officer 
716  may not issue a warrant for a refund to the qualified target 
717  industry business until the conclusion of all appeals of that 
718  order. 
719         (7)(6) ADMINISTRATION.— 
720         (a) The office may is authorized to verify information 
721  provided in any claim submitted for tax credits under this 
722  section with regard to employment and wage levels or the payment 
723  of the taxes to the appropriate agency or authority, including 
724  the Department of Revenue, the Agency for Workforce Innovation, 
725  or any local government or authority. 
726         (b) To facilitate the process of monitoring and auditing 
727  applications made under this program, the office may provide a 
728  list of qualified target industry businesses to the Department 
729  of Revenue, to the Agency for Workforce Innovation, or to any 
730  local government or authority. The office may request the 
731  assistance of those entities with respect to monitoring jobs, 
732  wages, and the payment of the taxes listed in subsection (3) 
733  (2). 
734         (c) Funds specifically appropriated for the tax refund 
735  program for qualified target industry businesses may not be used 
736  by the office for any purpose other than the payment of tax 
737  refunds authorized by this section. 
738         (d) Beginning with tax refund agreements signed after July 
739  1, 2010, the office shall attempt to ascertain the causes for 
740  any business’s failure to complete its agreement and shall 
741  report its findings and recommendations to the Governor, the 
742  President of the Senate, and the Speaker of the House of 
743  Representatives. The report shall be submitted by December 1 of 
744  each year beginning in 2011. 
745         (7) Notwithstanding paragraphs (4)(a) and (5)(c), the 
746  office may approve a waiver of the local financial support 
747  requirement for a business located in any of the following 
748  counties in which businesses received emergency loans 
749  administered by the office in response to the named hurricanes 
750  of 2004: Bay, Brevard, Charlotte, DeSoto, Escambia, Flagler, 
751  Glades, Hardee, Hendry, Highlands, Indian River, Lake, Lee, 
752  Martin, Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Polk, 
753  Putnam, Santa Rosa, Seminole, St. Lucie, Volusia, and Walton. A 
754  waiver may be granted only if the office determines that the 
755  local financial support cannot be provided or that doing so 
756  would effect a demonstrable hardship on the unit of local 
757  government providing the local financial support. If the office 
758  grants a waiver of the local financial support requirement, the 
759  state shall pay 100 percent of the refund due to an eligible 
760  business. The waiver shall apply for tax refund applications 
761  made for fiscal years 2004-2005, 2005-2006, and 2006-2007. 
762         (8) EXPIRATION.—An applicant may not be certified as 
763  qualified under this section after June 30, 2020 2010. A tax 
764  refund agreement existing on that date shall continue in effect 
765  in accordance with its terms. 
766         Section 2. Paragraph (e) of subsection (1), subsection (2), 
767  paragraphs (a) and (d) of subsection (4), and paragraph (b) of 
768  subsection (5) of section 288.107, Florida Statutes, are amended 
769  to read: 
770         288.107 Brownfield redevelopment bonus refunds.— 
771         (1) DEFINITIONS.—As used in this section: 
772         (e) “Eligible business” means: 
773         1. A qualified target industry business as defined in s. 
774  288.106(2) s. 288.106(1)(o); or 
775         2. A business that can demonstrate a fixed capital 
776  investment of at least $2 million in mixed-use business 
777  activities, including multiunit housing, commercial, retail, and 
778  industrial in brownfield areas, or at least $500,000 in 
779  brownfield areas that do not require site cleanup, and which 
780  provides benefits to its employees. 
781         (2) BROWNFIELD REDEVELOPMENT BONUS REFUND.—Bonus refunds 
782  shall be approved by the office as specified in the final order 
783  issued by the director and allowed from the account as follows: 
784         (a) A bonus refund of $2,500 shall be allowed to any 
785  qualified target industry business as defined by s. 288.106 for 
786  each new Florida job created in a brownfield area which is 
787  claimed on the qualified target industry business’s annual 
788  refund claim authorized in s. 288.106(6) s. 288.106(5). 
789         (b) A bonus refund of up to $2,500 shall be allowed to any 
790  other eligible business as defined in subparagraph (1)(e)2. for 
791  each new Florida job created in a brownfield which is claimed 
792  under an annual claim procedure similar to the annual refund 
793  claim authorized in s. 288.106(6) s. 288.106(5). The amount of 
794  the refund shall be equal to 20 percent of the average annual 
795  wage for the jobs created. 
796         (4) PAYMENT OF BROWNFIELD REDEVELOPMENT BONUS REFUNDS.— 
797         (a) To be eligible to receive a bonus refund for new 
798  Florida jobs created in a brownfield, a business must have been 
799  certified as a qualified target industry business under s. 
800  288.106 or eligible business as defined in paragraph (1)(e) and 
801  must have indicated on the qualified target industry tax refund 
802  application form submitted in accordance with s. 288.106(4) s. 
803  288.106(3) or other similar agreement for other eligible 
804  business as defined in paragraph (1)(e) that the project for 
805  which the application is submitted is or will be located in a 
806  brownfield and that the business is applying for certification 
807  as a qualified brownfield business under this section, and must 
808  have signed a qualified target industry tax refund agreement 
809  with the office which indicates that the business has been 
810  certified as a qualified target industry business located in a 
811  brownfield and specifies the schedule of brownfield 
812  redevelopment bonus refunds that the business may be eligible to 
813  receive in each fiscal year. 
814         (d) After entering into a tax refund agreement as provided 
815  in s. 288.106 or other similar agreement for other eligible 
816  businesses as defined in paragraph (1)(e), an eligible business 
817  may receive brownfield redevelopment bonus refunds from the 
818  account pursuant to s. 288.106(3)(d) s. 288.106(2)(c). 
819         (5) ADMINISTRATION.— 
820         (b) To facilitate the process of monitoring and auditing 
821  applications made under this program, the office may provide a 
822  list of qualified target industry businesses to the Department 
823  of Revenue, to the Agency for Workforce Innovation, to the 
824  Department of Environmental Protection, or to any local 
825  government authority. The office may request the assistance of 
826  those entities with respect to monitoring the payment of the 
827  taxes listed in s. 288.106(3) s. 288.106(2). 
828         Section 3. Section 290.00677, Florida Statutes, is amended 
829  to read: 
830         290.00677 Rural enterprise zones; special qualifications.— 
831         (1) Notwithstanding the enterprise zone residency 
832  requirements set out in s. 212.096(1)(c), eligible businesses as 
833  defined by s. 212.096(1)(a), located in rural enterprise zones 
834  as defined by s. 290.004, may receive the basic minimum credit 
835  provided under s. 212.096 for creating a new job and hiring a 
836  person residing within the jurisdiction of a rural community 
837  county, as defined by s. 288.106(2) s. 288.106(1)(r). All other 
838  provisions of s. 212.096, including, but not limited to, those 
839  relating to the award of enhanced credits, apply to such 
840  businesses. 
841         (2) Notwithstanding the enterprise zone residency 
842  requirements set out in s. 220.03(1)(q), businesses as defined 
843  by s. 220.03(1)(c), located in rural enterprise zones as defined 
844  in s. 290.004, may receive the basic minimum credit provided 
845  under s. 220.181 for creating a new job and hiring a person 
846  residing within the jurisdiction of a rural community county, as 
847  defined by s. 288.106(2) s. 288.106(1)(r). All other provisions 
848  of s. 220.181, including, but not limited to, those relating to 
849  the award of enhanced credits apply to such businesses. 
850         Section 4. This act shall take effect July 1, 2010.