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CS/HB 1509

1
A bill to be entitled
2An act relating to economic development; amending s.
3196.1995, F.S.; authorizing counties and municipalities to
4extend economic development ad valorem tax exemptions
5under certain circumstances; amending s. 220.191, F.S.;
6redefining the terms "qualifying business" and "qualifying
7project" for purposes of the capital investment tax
8credit; conforming a cross-reference; authorizing the
9approval of prorated tax credits under certain
10circumstances; amending s. 288.018, F.S.; revising the
11allowable uses for matching grants awarded under the
12Regional Rural Development Grants Program; amending s.
13288.106, F.S.; revising the amounts of tax refund payments
14allowable under the tax refund program for qualified
15target industry businesses; revising criteria for the
16waiver of wage requirements under the tax refund program
17for qualified target industry businesses; amending s.
18288.108, F.S.; redefining the term "eligible high-impact
19business" for purposes of high-impact sector performance
20grants; revising the guidelines for negotiating the award
21of high-impact sector performance grants; amending s.
22288.1088, F.S.; revising the process for legislative
23consultation and review of Quick Action Closing Fund
24projects; authorizing certain Quick Action Closing Fund
25businesses to request renegotiation of their contracts;
26providing for review and approval of the requests;
27providing for the return of funds under certain
28circumstances; providing for the reappropriation of
29returned funds; providing for expiration; requiring that
30certain funds be placed in reserve; providing for the
31release of funds; providing for the reversion of funds;
32amending s. 288.9625, F.S.; authorizing the Institute for
33the Commercialization of Public Research to accept public
34funds and contract for the provision of seed capital to
35businesses; limiting the amount of such contract;
36requiring that additional information be included in the
37institute's annual report to the Governor and Legislature;
38amending s. 14, ch. 2009-96, Laws of Florida; extending
39certain water-related permits issued by the Department of
40Environmental Protection or water management districts
41pursuant to part IV of ch. 373, F.S., and certain local
42government-issued development orders and building permits;
43providing an effective date.
44
45Be It Enacted by the Legislature of the State of Florida:
46
47     Section 1.  Subsection (7) of section 196.1995, Florida
48Statutes, is amended to read:
49     196.1995  Economic development ad valorem tax exemption.-
50     (7)  The authority to grant exemptions under this section
51expires will expire 10 years after the date such authority was
52approved in an election, but such authority may be renewed for
53subsequent another 10-year periods if each 10-year renewal is
54approved period in a referendum called and held pursuant to this
55section.
56     Section 2.  Paragraphs (g) and (h) of subsection (1) and
57subsections (3) and (4) of section 220.191, Florida Statutes,
58are amended to read:
59     220.191  Capital investment tax credit.-
60     (1)  DEFINITIONS.-For purposes of this section:
61     (g)  "Qualifying business" means a qualified target
62industry business as defined in s. 288.106 that which
63establishes a qualifying project in this state and which is
64certified by the office to receive tax credits pursuant to this
65section.
66     (h)  "Qualifying project" means:
67     1.  A new or expanding facility in this state that which
68creates at least 50 100 new jobs in this state, pays an annual
69average wage of at least 130 percent of the average private
70sector wage in the area as defined in s. 288.106, makes a
71cumulative capital investment of at least $25 million in this
72state, and is a qualified target industry business as defined in
73s. 288.106 in one of the high-impact sectors identified by
74Enterprise Florida, Inc., and certified by the office pursuant
75to s. 288.108(6), including, but not limited to, aviation,
76aerospace, automotive, and silicon technology industries; or
77     2.  A new or expanded facility in this state which is
78engaged in a target industry designated pursuant to the
79procedure specified in s. 288.106(1)(o) and which is induced by
80this credit to create or retain at least 1,000 jobs in this
81state, provided that at least 100 of those jobs are new, pay an
82annual average wage of at least 130 percent of the average
83private sector wage in the area as defined in s. 288.106(1), and
84make a cumulative capital investment of at least $100 million
85after July 1, 2005. Jobs may be considered retained only if
86there is significant evidence that the loss of jobs is imminent.
87Notwithstanding subsection (2), annual credits against the tax
88imposed by this chapter shall not exceed 50 percent of the
89increased annual corporate income tax liability or the premium
90tax liability generated by or arising out of a project
91qualifying under this subparagraph. A facility that qualifies
92under this subparagraph for an annual credit against the tax
93imposed by this chapter may take the tax credit for a period not
94to exceed 5 years; or
95     2.3.  A new or expanded headquarters facility in this state
96that which locates in an enterprise zone and brownfield area,
97and is induced by this credit to create at least 1,500 jobs
98paying which on average pay at least 200 percent of the
99statewide average annual private sector wage, as published by
100the Agency for Workforce Innovation or its successor, and which
101new or expanded headquarters facility makes a cumulative capital
102investment in this state of at least $250 million.
103     (3)(a)  Notwithstanding subsection (2), an annual credit
104against the tax imposed by this chapter shall be granted to a
105qualifying business that which establishes a qualifying project
106pursuant to subparagraph (1)(h)2.3., in an amount equal to the
107lesser of $15 million or 5 percent of the eligible capital costs
108made in connection with a qualifying project, for a period not
109to exceed 20 years beginning with the commencement of operations
110of the project. The tax credit shall be granted against the
111corporate income tax liability of the qualifying business and as
112further provided in paragraph (c). The total tax credit provided
113pursuant to this subsection shall be equal to no more than 100
114percent of the eligible capital costs of the qualifying project.
115     (b)  If the credit granted under this subsection is not
116fully used in any one year because of insufficient tax liability
117on the part of the qualifying business, the unused amount may be
118carried forward for a period not to exceed 20 years after the
119commencement of operations of the project. The carryover credit
120may be used in a subsequent year when the tax imposed by this
121chapter for that year exceeds the credit for which the
122qualifying business is eligible in that year under this
123subsection after applying the other credits and unused
124carryovers in the order provided by s. 220.02(8).
125     (c)  The credit granted under this subsection may be used
126in whole or in part by the qualifying business or any
127corporation that is either a member of that qualifying
128business's affiliated group of corporations, is a related entity
129taxable as a cooperative under subchapter T of the Internal
130Revenue Code, or, if the qualifying business is an entity
131taxable as a cooperative under subchapter T of the Internal
132Revenue Code, is related to the qualifying business. Any entity
133related to the qualifying business may continue to file as a
134member of a Florida-nexus consolidated group pursuant to a prior
135election made under s. 220.131(1), Florida Statutes (1985), even
136if the parent of the group changes due to a direct or indirect
137acquisition of the former common parent of the group. Any credit
138may can be used by any of the affiliated companies or related
139entities referenced in this paragraph to the same extent as it
140could have been used by the qualifying business. However, any
141such use does shall not operate to increase the amount of the
142credit or extend the period within which the credit must be
143used.
144     (4)  Before Prior to receiving tax credits pursuant to this
145section, a qualifying business must achieve and maintain the
146minimum employment goals beginning with the commencement of
147operations at a qualifying project and continuing each year
148thereafter during which tax credits are available pursuant to
149this section. However, the office may approve a prorated tax
150credit amount for a qualifying business that enters into an
151agreement with the office on or after July 1, 2010, and
152satisfies the capital investment and average wage requirements
153but does not meet the employment requirements because of market
154conditions. The prorated tax credit shall be calculated by
155multiplying the tax credit amount for which the qualifying
156business would be eligible if all applicable requirements were
157satisfied by the percentage of the average employment specified
158in the tax credit agreement that is actually achieved.
159     Section 3.  Subsection (1) of section 288.018, Florida
160Statutes, is amended to read:
161     288.018  Regional Rural Development Grants Program.-
162     (1)  The Office of Tourism, Trade, and Economic Development
163shall establish a matching grant program to provide funding to
164regionally based economic development organizations representing
165rural counties and communities for the purpose of building the
166professional capacity of their organizations. Such matching
167grants may also be used by an economic development organization
168to provide technical assistance to businesses within the rural
169counties and communities that it serves. The Office of Tourism,
170Trade, and Economic Development is authorized to approve, on an
171annual basis, grants to such regionally based economic
172development organizations. The maximum amount an organization
173may receive in any year will be $35,000, or $100,000 in a rural
174area of critical economic concern recommended by the Rural
175Economic Development Initiative and designated by the Governor,
176and must be matched each year by an equivalent amount of
177nonstate resources.
178     Section 4.  Paragraph (b) of subsection (2) and paragraph
179(b) of subsection (3) of section 288.106, Florida Statutes, are
180amended to read:
181     288.106  Tax refund program for qualified target industry
182businesses.-
183     (2)  TAX REFUND; ELIGIBLE AMOUNTS.-
184     (b)  Upon approval by the director, a qualified target
185industry business shall be allowed tax refund payments equal to
186$3,000 multiplied by times the number of jobs specified in the
187tax refund agreement under subparagraph (4)(a)1., or equal to
188$6,000 multiplied by times the number of jobs if the project is
189located in a rural county or an enterprise zone. Further, a
190qualified target industry business shall be allowed additional
191tax refund payments equal to $1,000 multiplied by times the
192number of jobs specified in the tax refund agreement under
193subparagraph (4)(a)1., if such jobs pay an annual average wage
194of at least 150 percent of the average private sector wage in
195the area, or equal to $2,000 multiplied by times the number of
196jobs if such jobs pay an annual average wage of at least 200
197percent of the average private sector wage in the area. A
198business that falls within one of the high-impact sectors
199designated under s. 288.108 shall be allowed additional tax
200refund payments equal to $2,000 multiplied by the number of jobs
201specified in the tax refund agreement under subparagraph
202(4)(a)1. A qualified target industry business may not receive
203refund payments of more than 25 percent of the total tax refunds
204specified in the tax refund agreement under subparagraph
205(4)(a)1. in any fiscal year. Further, a qualified target
206industry business may not receive more than $1.5 million in
207refunds under this section in any single fiscal year, or more
208than $2.5 million in any single fiscal year if the project is
209located in an enterprise zone. A qualified target industry may
210not receive more than $5 million in refund payments under this
211section in all fiscal years, or more than $7.5 million if the
212project is located in an enterprise zone. Funds made available
213pursuant to this section may not be expended in connection with
214the relocation of a business from one community to another
215community in this state unless the Office of Tourism, Trade, and
216Economic Development determines that without such relocation the
217business will move outside this state or determines that the
218business has a compelling economic rationale for the relocation
219and that the relocation will create additional jobs.
220     (3)  APPLICATION AND APPROVAL PROCESS.-
221     (b)  To qualify for review by the office, the application
222of a target industry business must, at a minimum, establish the
223following to the satisfaction of the office:
224     1.  The jobs proposed to be provided under the application,
225pursuant to subparagraph (a)4., must pay an estimated annual
226average wage equaling at least 115 percent of the average
227private sector wage in the area where the business is to be
228located or the statewide private sector average wage. In
229determining the average annual wage, the office shall include
230only new proposed jobs, and wages for existing jobs shall be
231excluded from this calculation. The office may waive the average
232wage requirement at the request of the local governing body
233recommending the project and Enterprise Florida, Inc. The wage
234requirement may only be waived for a project located in a
235brownfield area designated under s. 376.80, or in a rural city
236or county, or in an enterprise zone, or for a manufacturing
237project at any location within the state if the jobs proposed to
238be created pay an estimated annual average wage equaling at
239least 100 percent of the average private sector wage in the area
240where the business is to be located, and only when the merits of
241the individual project or the specific circumstances in the
242community in relationship to the project warrant such action. If
243the local governing body and Enterprise Florida, Inc., make such
244a recommendation, it must be transmitted in writing and the
245specific justification for the waiver recommendation must be
246explained. If the director elects to waive the wage requirement,
247the waiver must be stated in writing and the reasons for
248granting the waiver must be explained.
249     2.  The target industry business's project must result in
250the creation of at least 10 jobs at such project and, if an
251expansion of an existing business, must result in a net increase
252in employment of at least 10 percent at the business.
253Notwithstanding the definition of the term "expansion of an
254existing business" in paragraph (1)(g), at the request of the
255local governing body recommending the project and Enterprise
256Florida, Inc., the office may define an "expansion of an
257existing business" in a rural community or an enterprise zone as
258the expansion of a business resulting in a net increase in
259employment of less than 10 percent at such business if the
260merits of the individual project or the specific circumstances
261in the community in relationship to the project warrant such
262action. If the local governing body and Enterprise Florida,
263Inc., make such a request, the request must be transmitted in
264writing and the specific justification for the request must be
265explained. If the director elects to grant the request, the
266grant must be stated in writing and the reason for granting the
267request must be explained.
268     3.  The business activity or product for the applicant's
269project is within an industry or industries that have been
270identified by the office to be high-value-added industries that
271contribute to the area and to the economic growth of the state
272and that produce a higher standard of living for residents of
273this state in the new global economy or that can be shown to
274make an equivalent contribution to the area and state's economic
275progress. The director must approve requests to waive the wage
276requirement for brownfield areas designated under s. 376.80
277unless it is demonstrated that such action is not in the public
278interest.
279     Section 5.  Paragraph (a) of subsection (2) and paragraph
280(b) of subsection (3) of section 288.108, Florida Statutes, are
281amended to read:
282     288.108  High-impact business.-
283     (2)  DEFINITIONS.-As used in this section, the term:
284     (a)  "Eligible high-impact business" means a business in
285one of the high-impact sectors identified by Enterprise Florida,
286Inc., and certified by the Office of Tourism, Trade, and
287Economic Development as provided in subsection (5), which is
288making a cumulative investment in the state of at least $50 $100
289million and creating at least 50 100 new full-time equivalent
290jobs in the state or a research and development facility making
291a cumulative investment of at least $25 $75 million and creating
292at least 25 75 new full-time equivalent jobs. Such investment
293and employment must be achieved in a period not to exceed 3
294years after the date the business is certified as a qualified
295high-impact business.
296     (3)  HIGH-IMPACT SECTOR PERFORMANCE GRANTS; ELIGIBLE
297AMOUNTS.-
298     (b)  The office may, in consultation with Enterprise
299Florida, Inc., negotiate qualified high-impact business
300performance grant awards for any single qualified high-impact
301business. In negotiating such awards, the office shall consider
302the following guidelines in conjunction with other relevant
303applicant impact and cost information and analysis as required
304in subsection (5). A qualified high-impact business making a
305cumulative investment of $50 million and creating 50 jobs may be
306eligible for a total qualified high-impact business performance
307grant of $500,000 to $1 million. A qualified high-impact
308business making a cumulative investment of $100 million and
309creating 100 jobs may be eligible for a total qualified high-
310impact business performance grant of $1 million to $2 million. A
311qualified high-impact business making a cumulative investment of
312$800 million and creating 800 jobs may be eligible for a
313qualified high-impact business performance grant of $10 million
314to $12 million. A qualified high-impact business engaged in
315research and development making a cumulative investment of $25
316million and creating 25 jobs may be eligible for a total
317qualified high-impact business performance grant of $700,000 to
318$1 million. A qualified high-impact business, engaged in
319research and development, making a cumulative investment of $75
320million, and creating 75 jobs may be eligible for a total
321qualified high-impact business performance grant of $2 million
322to $3 million. A qualified high-impact business, engaged in
323research and development, making a cumulative investment of $150
324million, and creating 150 jobs may be eligible for a qualified
325high-impact business performance grant of $3.5 million to $4.5
326million.
327     Section 6.  Paragraphs (b) and (c) of subsection (3) of
328section 288.1088, Florida Statutes, are amended, and subsections
329(4) and (5) are added to that section, to read:
330     288.1088  Quick Action Closing Fund.-
331     (3)
332     (b)  Within 22 calendar days after receiving the evaluation
333and recommendation from Enterprise Florida, Inc., the director
334of the Office of Tourism, Trade, and Economic Development shall
335recommend to the Governor approval or disapproval of a project
336for receipt of funds from the Quick Action Closing Fund. In
337recommending a project, the director shall include proposed
338performance conditions that the project must meet to obtain
339incentive funds. The Governor shall provide the evaluation of
340projects recommended for approval to the President of the Senate
341and the Speaker of the House of Representatives and consult with
342the President of the Senate and the Speaker of the House of
343Representatives before giving final approval for a project. At
344least 14 days before releasing funds for a project, the
345Executive Office of the Governor shall recommend approval of the
346a project and the release of funds by delivering notice of such
347action pursuant to the legislative consultation and review
348requirements set forth in s. 216.177. The recommendation must
349include proposed performance conditions that the project must
350meet in order to obtain funds. If the President of the Senate or
351the Speaker of the House of Representatives timely advises the
352Executive Office of the Governor, in writing, that such action
353or proposed action exceeds the delegated authority of the
354Executive Office of the Governor or is contrary to legislative
355policy or intent, the Executive Office of the Governor shall
356void the release of funds and instruct the Office of Tourism,
357Trade, and Economic Development to immediately change such
358action or proposed action until the Legislative Budget
359Commission or the Legislature addresses the issue.
360     (c)  Upon the approval of the Governor, the director of the
361Office of Tourism, Trade, and Economic Development and the
362business shall enter into a contract that sets forth the
363conditions for payment of moneys from the fund. The contract
364must include the total amount of funds awarded; the performance
365conditions that must be met to obtain the award, including, but
366not limited to, net new employment in the state, average salary,
367and total capital investment; demonstrate a baseline of current
368service and a measure of enhanced capability; the methodology
369for validating performance; the schedule of payments from the
370fund; and sanctions for failure to meet performance conditions.
371The contract must provide that payment of moneys from the fund
372is contingent upon sufficient appropriation of funds by the
373Legislature and upon sufficient release of appropriated funds by
374the Legislative Budget Commission.
375     (4)(a)  A Quick Action Closing Fund business that, pursuant
376to its contract, submits reports to the Office of Tourism,
377Trade, and Economic Development on or after January 1, 2010, but
378no later than June 30, 2011, on the status of the business's
379compliance with the performance conditions of its contract may
380submit a written request to the Office of Tourism, Trade, and
381Economic Development for renegotiation of the contract. The
382request must provide quantitative evidence demonstrating how
383negative economic conditions in the business's industry have
384prevented the business from complying with the terms and
385conditions of the contract. The request must also include
386proposed adjusted performance conditions that result in new job
387creation and meet the requirements of subsection (2). Adjusted
388performance conditions may not include any additional waiver
389requests.
390     (b)  Within 45 days after receiving a Quick Action Closing
391Fund business's request to renegotiate its contract, the
392director of the Office of Tourism, Trade, and Economic
393Development must provide written notice to the business of
394whether the request for renegotiation is granted or denied. In
395making such a determination, the director shall consider the
396extent to which negative economic conditions in the business's
397industry occurred in the state, the proposed adjusted
398performance conditions, and the business's efforts to comply
399with the contract.
400     (c)  Upon granting a business's request to renegotiate, the
401Office of Tourism, Trade, and Economic Development, together
402with Enterprise Florida, Inc., shall determine the economic
403impact of the adjusted performance conditions and notify the
404business of the adjusted award amount associated with the
405proposed adjusted performance conditions. The Quick Action
406Closing Fund business must renegotiate its contract with the
407Office of Tourism, Trade, and Economic Development for the
408adjusted amount and agree to return the difference between the
409original Quick Action Closing Fund award and the adjusted award
410without interest or penalties. When renegotiating a contract
411with a Quick Action Closing Fund business, the Office of
412Tourism, Trade, and Economic Development may extend the duration
413of the contract for a period not to exceed 2 years. Any funds
414returned pursuant to this paragraph shall be reappropriated to
415the Office of Tourism, Trade, and Economic Development for the
416Quick Action Closing Fund.
417     (d)  This subsection expires June 30, 2011.
418     (5)  Funds appropriated by the Legislature for purposes of
419implementing this section shall be placed in reserve and may
420only be released pursuant to the legislative consultation and
421review requirements set forth in s. 216.177. Notwithstanding s.
422216.301, funds appropriated for purposes of implementing this
423section, whether released or in reserve, shall not revert on
424June 30th of the fiscal year for which the funds are
425appropriated but shall revert on June 30th of the second fiscal
426year of the appropriation.
427     Section 7.  Subsection (10) of section 288.9625, Florida
428Statutes, is amended, subsection (11) is renumbered as
429subsection (12), present subsection (12) is renumbered as
430subsection (13) and amended, and a new subsection (11) is added
431to that section, to read:
432     288.9625  Institute for the Commercialization of Public
433Research.-There is established the Institute for the
434Commercialization of Public Research.
435     (10)  The institute shall not develop or accrue any
436ownership, royalty, patent, or other such rights over or
437interest in companies or products in the institute and shall
438maintain the secrecy of proprietary information.
439     (11)(a)  The institute may accept public funds, including,
440but not limited to, funds appropriated by the Legislature to the
441Office of Tourism, Trade, and Economic Development for purposes
442of, and enter into contracts for, the provision of seed capital
443with companies whose technologies, products, or services are
444developed with publicly funded research.
445     (b)  The institute may negotiate the terms of any contract
446and fund repayments as necessary to maximize the benefits to the
447state as described in paragraph (13)(c). The amount of such
448contract may not exceed $250,000 and must be supported by at
449least an equal monetary matching capital contribution from
450private sources.
451     (13)(12)  By December 1 of each year, the institute shall
452issue an annual report concerning its activities to the
453Governor, the President of the Senate, and the Speaker of the
454House of Representatives. The report shall include the
455following:
456     (a)  Information on any assistance and activities provided
457by the institute to assist publicly supported universities,
458colleges, research institutes, and other publicly supported
459organizations in the state.
460     (b)  A description of the benefits to this state resulting
461from the institute, including the number of businesses created,
462associated industries started, the number of jobs created, and
463the growth of related projects.
464     (c)  A description of the benefits to the state resulting
465from the provision of seed capital, including the number of
466businesses created, the amount of additional capital raised, the
467number of associated industries started, the number of jobs
468created, and the growth of related research projects.
469     (d)(c)  Independently audited financial statements,
470including statements that show receipts and expenditures during
471the preceding fiscal year for personnel, administration, and
472operational costs of the institute.
473     Section 8.  Subsections (1), (3), and (5) of section 14 of
474chapter 2009-96, Laws of Florida, are amended to read:
475     Section 14.  (1)  Except as provided in subsection (4), and
476in recognition of 2009 real estate market conditions, any permit
477issued by the Department of Environmental Protection or a water
478management district pursuant to part IV of chapter 373, Florida
479Statutes, that has an expiration date of September 1, 2008,
480through January 1, 2012, is extended and renewed for a period of
4813 2 years following its date of expiration. This extension
482includes any local government-issued development order or
483building permit. The 3-year 2-year extension also applies to
484build out dates including any build out date extension
485previously granted under s. 380.06(19)(c), Florida Statutes.
486This section shall not be construed to prohibit conversion from
487the construction phase to the operation phase upon completion of
488construction.
489     (3)  The holder of a valid permit or other authorization
490that is eligible for the 3-year 2-year extension shall notify
491the authorizing agency in writing no later than December 31,
4922009, identifying the specific authorization for which the
493holder intends to use the extension and the anticipated
494timeframe for acting on the authorization.
495     (5)  Permits extended under this section shall continue to
496be governed by rules in effect at the time the permit was
497issued, except when it can be demonstrated that the rules in
498effect at the time the permit was issued would create an
499immediate threat to public safety or health. This provision
500shall apply to any modification of the plans, terms, and
501conditions of the permit that lessens the environmental impact,
502except that any such modification shall not extend the time
503limit beyond 3 2 additional years.
504     Section 9.  This act shall take effect upon becoming a law.


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