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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to rural development; amending s. 2
166.231, F.S.; removing a provision authorizing 3
municipalities to provide certain tax exemptions to 4
certain areas nominated, but not designated, as 5
enterprise zones; removing an expiration date; 6
amending s. 212.08, F.S.; revising the definition of 7
the term "enterprise zone" to the term "opportunity 8
zone" for purposes of certain sales tax exemptions; 9
authorizing certain charges for natural gas or propane 10
used by certain qualified businesses in opportunity 11
zones to receive a specified sales tax exemption; 12
conforming provisions to changes made by the act; 13
increasing the amount of a refund for certain 14
previously paid sales taxes; removing an expiration 15
date; amending s. 212.098, F.S.; revising eligibility 16
criteria necessary to qualify for the Rural Job Tax 17
Credit Program; amending s. 288.018, F.S.; reducing 18
the required grant match percentage rate under the 19
Regional Rural Development Grants Program; amending s. 20
288.019, F.S.; revising certain eligibility criteria 21
for the Rural Economic Development Initiative (REDI); 22
amending s. 288.047, F.S.; revising provisions 23
requiring CareerSource Florida, Inc., to set aside 24
certain funds for instructional programs; amending s. 25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
288.065, F.S.; removing a match requirement from t he 26
Rural Community Development Revolving Loan Fund under 27
specified conditions; amending s. 288.0655, F.S.; 28
revising provisions related to the Rural 29
Infrastructure Fund; increasing the percentage of 30
grants that the Department of Economic Opportunity may 31
award; revising criteria for awarding grants; removing 32
the local match requirement; amending s. 288.0656, 33
F.S.; requiring REDI to annually collect specified 34
data related to rural communities and rural areas of 35
opportunity; requiring REDI to provide specified 36
information to rural communities and rural areas of 37
opportunity; authorizing REI to override the 38
Department of Economic Opportunity's decision that a 39
business is not qualified for state programs; 40
requiring REDI to establish a specified direct -support 41
organization; removing a provision requiring 42
alternates for REDI representatives to be sent to the 43
Secretary of Economic Opportunity; amending s. 44
288.1201, F.S.; requiring a specified percentage of 45
the State Economic Enhancement and Development Trust 46
Fund to be used for certain affordable housing 47
programs; creating s. 288.9941, F.S.; providing 48
legislative findings and intent related to small 49
businesses in rural counties and their ability to 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
access capital; creating s. 288.9942, F.S.; providing 51
definitions; creating s. 288.9943, F.S.; creating the 52
Florida Microfinance Corporation; providing purpose, 53
powers, and duties of the corporation; creating s. 54
288.9944, F.S.; requiring a board of directors of the 55
corporation; providing the membership, powers, and 56
duties of the board; creating s. 288.9945, F.S.; 57
requiring the board to appoint a president of the 58
corporation; providing the compensation, powers, and 59
duties of the president; creating s. 288.9946, F.S.; 60
requiring the board to adopt policies and bylaws 61
related to carrying out its responsibilities of 62
providing access to capital for small businesses; 63
creating s. 288.9947, F.S.; requiring the board to 64
create the Florida Microfinance Corporation Guarantee 65
Account to receive specified funds; specifying 66
purposes and uses of the account; specifying duties of 67
the board related to the account; creating s. 68
288.9948, F.S.; requiring the corporation to submit an 69
annual report to the Department of Economic 70
Opportunity by a specified date; providing 71
requirements for the report; ame nding ss. 290.0056 and 72
290.007, F.S.; conforming provisions and cross -73
references; providing an effective date. 74
75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Be It Enacted by the Legislature of the State of Florida: 76
77
Section 1. Subsection (8) of section 166.231, Florida 78
Statutes, is amended to read: 79
166.231 Municipalities; public service tax. — 80
(8)(a) Beginning July 1, 1995, A municipality may by 81
ordinance exempt not less than 50 percent of the tax imposed 82
under this section on purchasers of electrical energy , natural 83
gas, or propane who are determined to be eligible for the 84
exemption provided by s. 212.08(15) by the Department of 85
Revenue. The exemption shall be administered as provided in that 86
section. A copy of any ordinance adopted pursuant to this 87
subsection shall be provided to the Depar tment of Revenue not 88
less than 14 days before prior to its effective date. 89
(b) If an area that is nominated as an enterprise zone 90
pursuant to s. 290.0055 has not yet been designated pursuant to 91
s. 290.0065, a municipality may enact an ordinance for such 92
exemption; however, the ordinance shall not be effective until 93
such area is designated pursuant to s. 290.0065. 94
(c) This subsection expires on the date specified in s. 95
290.016 for the expiration of the Florida Enterprise Zone Act, 96
except that any qualifi ed business that has satisfied the 97
requirements of this subsection before that date shall be 98
allowed the full benefit of the exemption allowed under this 99
subsection as if this subsection had not expired on that date. 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Section 2. Paragraph (g) of subsect ion (5) and subsection 101
(15) of section 212.08, Florida Statutes, are amended to read: 102
212.08 Sales, rental, use, consumption, distribution, and 103
storage tax; specified exemptions. —The sale at retail, the 104
rental, the use, the consumption, the distribution, and the 105
storage to be used or consumed in this state of the following 106
are hereby specifically exempt from the tax imposed by this 107
chapter. 108
(5) EXEMPTIONS; ACCOUNT OF USE. — 109
(g) Building materials used in the rehabilitation of real 110
property located in a n opportunity enterprise zone.— 111
1. Building materials used in the rehabilitation of real 112
property located in an opportunity enterprise zone are exempt 113
from the tax imposed by this chapter upon an affirmative showing 114
to the satisfaction of the department that the items have been 115
used for the rehabilitation of real property located in an 116
opportunity enterprise zone. Except as provided in subparagraph 117
2., this exemption inures to the owner, lessee, or lessor at the 118
time the real property is rehabilitated, bu t only through a 119
refund of previously paid taxes. To receive a refund pursuant to 120
this paragraph, the owner, lessee, or lessor of the 121
rehabilitated real property must file an application under oath 122
with the governing body or enterprise zone development age ncy 123
having jurisdiction over the opportunity enterprise zone where 124
the business is located, as applicable. A single application for 125
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
a refund may be submitted for multiple, contiguous parcels that 126
were part of a single parcel that was divided as part of the 127
rehabilitation of the property. All other requirements of this 128
paragraph apply to each parcel on an individual basis. The 129
application must include: 130
a. The name and address of the person claiming the refund. 131
b. An address and assessment roll parcel num ber of the 132
rehabilitated real property for which a refund of previously 133
paid taxes is being sought. 134
c. A description of the improvements made to accomplish 135
the rehabilitation of the real property. 136
d. A copy of a valid building permit issued by the county 137
or municipal building department for the rehabilitation of the 138
real property. 139
e. A sworn statement, under penalty of perjury, from the 140
general contractor licensed in this state with whom the 141
applicant contracted to make the improvements necessary to 142
rehabilitate the real property, which lists the building 143
materials used to rehabilitate the real property, the actual 144
cost of the building materials, and the amount of sales tax paid 145
in this state on the building materials. If a general contractor 146
was not used, the applicant, not a general contractor, shall 147
make the sworn statement required by this sub -subparagraph. 148
Copies of the invoices that evidence the purchase of the 149
building materials used in the rehabilitation and the payment of 150
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
sales tax on the building materials must be attached to the 151
sworn statement provided by the general contractor or by the 152
applicant. Unless the actual cost of building materials used in 153
the rehabilitation of real property and the payment of sales 154
taxes is documented by a gen eral contractor or by the applicant 155
in this manner, the cost of the building materials is deemed to 156
be an amount equal to 40 percent of the increase in assessed 157
value for ad valorem tax purposes. 158
f. The identifying number assigned pursuant to s. 290.0065 159
to the opportunity enterprise zone in which the rehabilitated 160
real property is located. 161
g. A certification by the local building code inspector 162
that the improvements necessary to rehabilitate the real 163
property are substantially completed. 164
h. A statement of whether the business is a small business 165
as defined by the federal Small Business Administration s. 166
288.703. 167
i. If applicable, the name and address of each permanent 168
employee of the business, including, for each employee who is a 169
resident of an enterprise zone, the identifying number assigned 170
pursuant to s. 290.0065 to the enterprise zone in which the 171
employee resides. 172
2. This exemption inures to a municipality, county, other 173
governmental unit or agency, or nonprofit community -based 174
organization through a refund of previously paid taxes if the 175
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
building materials used in the rehabilitation are paid for from 176
the funds of a community development block grant, State Housing 177
Initiatives Partnership Program, or similar grant or loan 178
program. To receive a refund, a municipality, county, other 179
governmental unit or agency, or nonprofit community -based 180
organization must file an application that includes the same 181
information required in subparagraph 1. In addition, the 182
application must include a sworn statement signed by the chief 183
executive officer of the municipality, county, other 184
governmental unit or agency, or nonprofit community -based 185
organization seeking a refund which states that the building 186
materials for which a refund is sought were funded by a 187
community development block grant, State Housing Initiatives 188
Partnership Program, or similar grant or loan program. 189
3. Within 10 working days after receipt of an application, 190
the governing body or enterprise zone development agency shall 191
review the application to determine if it contains all the 192
information required by subparagraph 1. or subparagraph 2. and 193
meets the criteria set out in this paragraph. The governing body 194
or agency shall certify all applications that contain the 195
required information and are eligi ble to receive a refund. If 196
applicable, the governing body or agency shall also certify if 197
20 percent of the employees of the business are residents of an 198
enterprise zone, excluding temporary and part -time employees. 199
The certification must be in writing, a nd a copy of the 200
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
certification shall be transmitted to the executive director of 201
the department. The applicant is responsible for forwarding a 202
certified application to the department within the time 203
specified in subparagraph 4. 204
4. An application for a re fund must be submitted to the 205
department within 6 months after the rehabilitation of the 206
property is deemed to be substantially completed by the local 207
building code inspector or by November 1 after the rehabilitated 208
property is first subject to assessment. 209
5. Only one exemption through a refund of previously paid 210
taxes for the rehabilitation of real property is permitted for 211
any single parcel of property unless there is a change in 212
ownership, a new lessor, or a new lessee of the real property. A 213
refund may not be granted unless the amount to be refunded 214
exceeds $500. A refund may not exceed the lesser of 97 percent 215
of the Florida sales or use tax paid on the cost of the building 216
materials used in the rehabilitation of the real property as 217
determined pursuant to sub-subparagraph 1.e. or $7,500 $5,000, 218
or, if at least 20 percent of the employees of the business are 219
residents of an enterprise zone, excluding temporary and part -220
time employees, the amount of refund may not exceed the lesser 221
of 97 percent of the sales tax paid on the cost of the building 222
materials or $10,000 . A refund shall be made within 30 days 223
after formal approval by the department of the application for 224
the refund. 225
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
6. The department shall adopt rules governing the manner 226
and form of refund applications and may establish guidelines as 227
to the requisites for an affirmative showing of qualification 228
for exemption under this paragraph. 229
7. The department shall deduct an amount equal to 10 230
percent of each refund granted under this paragraph from t he 231
amount transferred into the Local Government Half -cent Sales Tax 232
Clearing Trust Fund pursuant to s. 212.20 for the county area in 233
which the rehabilitated real property is located and shall 234
transfer that amount to the General Revenue Fund. 235
8. For the purposes of the exemption provided in this 236
paragraph, the term: 237
a. "Building materials" means tangible personal property 238
that becomes a component part of improvements to real property. 239
b. "Real property" has the same meaning as provided in s. 240
192.001(12), except that the term does not include a condominium 241
parcel or condominium property as defined in s. 718.103. 242
c. "Rehabilitation of real property" means the 243
reconstruction, renovation, restoration, rehabilitation, 244
construction, or expansion of improvem ents to real property. 245
d. "Substantially completed" has the same meaning as 246
provided in s. 192.042(1). 247
9. This paragraph expires on the date specified in s. 248
290.016 for the expiration of the Florida Enterprise Zone Act. 249
(15) ELECTRICAL ENERGY USED IN AN OPPORTUNITY ENTERPRISE 250
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
ZONE.— 251
(a) Beginning July 1, 1995, Charges for electrical energy , 252
natural gas, or propane used by a qualified business at a fixed 253
location in an opportunity enterprise zone in a municipality 254
which has enacted an ordinance pursu ant to s. 166.231(8) which 255
provides for exemption of municipal utility taxes on such 256
businesses or in an opportunity enterprise zone jointly 257
authorized by a county and a municipality which has enacted an 258
ordinance pursuant to s. 166.231(8) which provides f or exemption 259
of municipal utility taxes on such businesses shall receive an 260
exemption equal to 50 percent of the tax imposed by this 261
chapter, or, if no less than 20 percent of the employees of the 262
business are residents of an enterprise zone, excluding 263
temporary and part-time employees, the exemption shall be equal 264
to 100 percent of the tax imposed by this chapter . A qualified 265
business may receive such exemption for a period of 5 years from 266
the billing period beginning not more than 30 days following 267
notification to the applicable utility company by the department 268
that an exemption has been authorized pursuant to this 269
subsection and s. 166.231(8). 270
(b) To receive this exemption, a business must file an 271
application, with the governing body enterprise zone development 272
agency having jurisdiction over the opportunity enterprise zone 273
where the business is located, on a form provided by the 274
department for the purposes of this subsection and s. 275
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
166.231(8). The application shall be made under oath and shall 276
include: 277
1. The name and location of the business. 278
2. The identifying number assigned pursuant to s. 290.0065 279
to the opportunity enterprise zone in which the business is 280
located. 281
3. The date on which electrical , natural gas, or propane 282
service is to be fir st initiated to the business. 283
4. The name and mailing address of the entity from which 284
electrical energy, natural gas, or propane is to be purchased. 285
5. The date of the application. 286
6. The name of the city in which the business is located. 287
7. If applicable, the name and address of each permanent 288
employee of the business including, for each employee who is a 289
resident of an enterprise zone, the identifying number assigned 290
pursuant to s. 290.0065 to the enterprise zone in which the 291
employee resides. 292
8. Whether the business is a small business as defined by 293
the federal Small Business Administration s. 288.703. 294
(c) Within 10 working days after receipt of an 295
application, the governing body enterprise zone development 296
agency shall review the applicatio n to determine if it contains 297
all information required pursuant to paragraph (b) and meets the 298
criteria set out in this subsection. The governing body agency 299
shall certify all applications that contain the information 300
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
required pursuant to paragraph (b) and meet the criteria set out 301
in this subsection as eligible to receive an exemption. If 302
applicable, the agency shall also certify if 20 percent of the 303
employees of the business are residents of an enterprise zone, 304
excluding temporary and part -time employees. The certification 305
shall be in writing, and a copy of the certification shall be 306
transmitted to the executive director of the Department of 307
Revenue. The applicant shall be responsible for forwarding a 308
certified application to the department within 6 months after 309
the occurrence of the appropriate qualifying provision set out 310
in paragraph (f). 311
(d) If, in a subsequent audit conducted by the department, 312
it is determined that the business did not meet the criteria 313
mandated in this subsection, the amount of tax es exempted shall 314
immediately be due and payable to the department by the 315
business, together with the appropriate interest and penalty, 316
computed from the due date of each bill for the electrical 317
energy, natural gas, or propane purchased as exempt under thi s 318
subsection, in the manner prescribed by this chapter. 319
(e) The department shall adopt rules governing 320
applications for, issuance of, and the form of applications for 321
the exemption authorized in this subsection and provisions for 322
recapture of taxes exemp ted under this subsection, and the 323
department may establish guidelines as to qualifications for 324
exemption. 325
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(f) For the purpose of the exemption provided in this 326
subsection, the term "qualified business" means a business which 327
is: 328
1. First occupying a n ew structure to which electrical , 329
natural gas, or propane service, other than that used for 330
construction purposes, has not been previously provided or 331
furnished; 332
2. Newly occupying an existing, remodeled, renovated, or 333
rehabilitated structure to which el ectrical, natural gas, or 334
propane service, other than that used for remodeling, 335
renovation, or rehabilitation of the structure, has not been 336
provided or furnished in the three preceding billing periods; or 337
3. Occupying a new, remodeled, rebuilt, renovate d, or 338
rehabilitated structure for which a refund has been granted 339
pursuant to paragraph (5)(g). 340
(g) This subsection expires on the date specified in s. 341
290.016 for the expiration of the Florida Enterprise Zone Act, 342
except that: 343
1. Paragraph (d) shall n ot expire; and 344
2. Any qualified business which has been granted an 345
exemption under this subsection prior to that date shall be 346
allowed the full benefit of this exemption as if this subsection 347
had not expired on that date. 348
Section 3. Subsections (2) a nd (3) of section 212.098, 349
Florida Statutes, are amended to read: 350
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
212.098 Rural Job Tax Credit Program. — 351
(2) A new eligible business may apply for a tax credit 352
under this subsection once at any time during its first year of 353
operation. A new eligible bu siness in a qualified area that has 354
at least 10 qualified employees on the date of application shall 355
receive a $2,500 $1,000 tax credit for each such employee. 356
(3) An existing eligible business may apply for a tax 357
credit under this subsection at any time it is entitled to such 358
credit, except as restricted by this subsection. An existing 359
eligible business with fewer than 50 employees in a qualified 360
area that on the date of application has at least 10 20 percent 361
more qualified employees than it had 1 year before prior to its 362
date of application shall receive a $2,000 $1,000 tax credit for 363
each such additional employee. An existing eligible business 364
that has 50 employees or more in a qualified area that, on the 365
date of application, has at least 5 10 more qualified employees 366
than it had 1 year before prior to its date of application shall 367
receive a $1,500 $1,000 tax credit for each additional employee. 368
Any existing eligible business that received a credit under 369
subsection (2) may not apply for the credit under this 370
subsection sooner than 12 months after the application date for 371
the credit under subsection (2). 372
Section 4. Paragraph (d) of subsection (1) of section 373
288.018, Florida Statutes, is amended to read: 374
288.018 Regional Rural Development Grants Progr am.— 375
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(1) 376
(d) Grant funds received by a regional economic 377
development organization must be matched each year by nonstate 378
resources in an amount equal to 15 25 percent of the state 379
contribution. 380
Section 5. Paragraph (b) of subsection (3) of section 381
288.019, Florida Statutes, is amended to read: 382
288.019 Rural considerations in grant review and 383
evaluation processes. —Notwithstanding any other law, and to the 384
fullest extent possible, the member agencies and organizations 385
of the Rural Economic Development Initiative (REDI) as defined 386
in s. 288.0656(6)(a) shall review all grant and loan application 387
evaluation criteria to ensure the fullest access for rural 388
counties as defined in s. 288.0656(2) to resources available 389
throughout the state. 390
(3) Evaluation criteria and scoring procedures must 391
recognize the disparity of available fiscal resources for an 392
equal level of financial support from an urban county and a 393
rural county. 394
(b) In-kind match should be allowed and applied as 395
financial match when a county is experiencing financial distress 396
through elevated unemployment at a rate in excess of the state's 397
average by 5 percentage points or because of the loss of its ad 398
valorem base. 399
Section 6. Subsection (4) of section 288.047, Florida 400
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Statutes, is amended to read: 401
288.047 Quick-response training for economic development. — 402
(4) For the first 3 6 months of each fiscal year, 403
CareerSource Florida, Inc., shall set aside 30 percent of the 404
amount appropriated by the Legislature for the Quick -Response 405
Training Program to fund instructional programs for businesses 406
located in a rural area of opportunity an enterprise zone or 407
brownfield area. Any unencumbered funds remaining undisbursed 408
from this set-aside at the end of the 3-month 6-month period may 409
be used to provide funding for a program that qualifies for 410
funding pursuant to this section. 411
Section 7. Paragraph (c) of subsection (2) of section 412
288.065, Florida Statutes, is amended to read: 413
288.065 Rural Community Development Revolving Loan Fund. — 414
(2) 415
(c) All repayments of principal and interest shall be 416
returned to the loan fund and made available for loans to other 417
applicants. However, in a rural area of opportunity designated 418
by the Governor, and upon approval by the department, repayments 419
of principal and interest may be retained by the applicant if 420
such repayments are dedicated and matched to fund regionally 421
based economic development organizations representing the rural 422
area of opportunity. 423
Section 8. Subsection (1), paragraphs (b), (c), and ( e) of 424
subsection (2), and subsection (3) of section 288.0655, Florida 425
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Statutes, are amended to read: 426
288.0655 Rural Infrastructure Fund. — 427
(1) There is created within the department the Rural 428
Infrastructure Fund to facilitate the planning, preparing, an d 429
financing of infrastructure projects in rural communities which 430
will encourage job creation, capital investment, and the 431
strengthening and diversification of rural economies by 432
promoting tourism, trade, and economic development. 433
(2) 434
(b) To facilitate access of rural communities and rural 435
areas of opportunity as defined by the Rural Economic 436
Development Initiative to infrastructure funding programs of the 437
Federal Government, such as those offered by the United States 438
Department of Agriculture and the Un ited States Department of 439
Commerce, and state programs, including those offered by Rural 440
Economic Development Initiative agencies, and to facilitate 441
local government or private infrastructure funding efforts, the 442
department may award grants for up to 75 50 percent of the total 443
infrastructure project cost. Eligible projects must be related 444
to specific job-creation or job-retention opportunities. 445
Eligible uses of funds projects may also include improving any 446
inadequate infrastructure that has resulted in regu latory action 447
that prohibits economic or community growth, reducing the costs 448
to community users of proposed infrastructure improvements that 449
exceed such costs in comparable communities, and improving 450
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
access to and the availability of broadband Internet se rvice. 451
Eligible uses of funds shall include improvements to public 452
infrastructure for industrial or commercial sites, upgrades to 453
or development of public tourism infrastructure, and 454
improvements to broadband Internet service and access in 455
unserved or underserved rural communities. Improvements to 456
broadband Internet service and access must be conducted through 457
a partnership or partnerships with one or more dealers, as 458
defined in s. 202.11(2), and the partnership or partnerships 459
must be established through a competitive selection process that 460
is publicly noticed. Authorized infrastructure may include the 461
following public or public -private partnership facilities: storm 462
water systems; telecommunications facilities; broadband 463
facilities; roads or other remedies to transportation 464
impediments; nature-based tourism facilities; or other physical 465
requirements necessary to facilitate tourism, trade, and 466
economic development activities in the community. Authorized 467
infrastructure may also include publicly or privately ow ned 468
self-powered nature-based tourism facilities, publicly owned 469
telecommunications facilities, and broadband facilities, and 470
additions to the distribution facilities of the existing natural 471
gas utility as defined in s. 366.04(3)(c), the existing electric 472
utility as defined in s. 366.02, or the existing water or 473
wastewater utility as defined in s. 367.021(12), or any other 474
existing water or wastewater facility, which owns a gas or 475
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
electric distribution system or a water or wastewater system in 476
this state where: 477
1. A contribution-in-aid of construction is required to 478
serve public or public -private partnership facilities under the 479
tariffs of any natural gas, electric, water, or wastewater 480
utility as defined herein; and 481
2. Such utilities as defined herein a re willing and able 482
to provide such service. 483
(c) To facilitate timely response and induce the location 484
or expansion of specific job creating opportunities, The 485
department may award grants of up to $300,000 for infrastructure 486
feasibility studies, design a nd engineering activities, or other 487
infrastructure planning and preparation activities. Authorized 488
grants shall be up to $50,000 for an employment project with a 489
business committed to create at least 100 jobs; up to $150,000 490
for an employment project with a business committed to create at 491
least 300 jobs; and up to $300,000 for a project in a rural area 492
of opportunity. Grants awarded under this paragraph may be used 493
in conjunction with grants awarded under paragraph (b) , provided 494
that the total amount of bot h grants does not exceed 30 percent 495
of the total project cost . In evaluating applications under this 496
paragraph, the department shall consider the extent to which the 497
application seeks to minimize administrative and consultant 498
expenses. 499
(e) To enable local governments to access the resources 500
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available pursuant to s. 403.973(18), the department may award 501
grants for surveys, feasibility studies, and other activities 502
related to the identification and preclearance review of land 503
which is suitable for precleara nce review. Authorized grants 504
under this paragraph do not require a local match and may not 505
exceed $75,000 each, except in the case of a project in a rural 506
area of opportunity, in which case the grant may not exceed 507
$300,000. Any funds awarded under this p aragraph must be matched 508
at a level of 50 percent with local funds, except that any funds 509
awarded for a project in a rural area of opportunity must be 510
matched at a level of 33 percent with local funds. If an 511
application for funding is for a catalyst site, as defined in s. 512
288.0656, the requirement for local match may be waived pursuant 513
to the process in s. 288.06561. In evaluating applications under 514
this paragraph, the department shall consider the extent to 515
which the application seeks to minimize administr ative and 516
consultant expenses. 517
(3) The department, in consultation with Enterprise 518
Florida, Inc., the Florida Tourism Industry Marketing 519
Corporation, the Department of Environmental Protection, and the 520
Florida Fish and Wildlife Conservation Commission, a s 521
appropriate, shall review and certify applications pursuant to 522
s. 288.061. The review shall include an evaluation of the 523
economic benefit of the projects and their long-term viability. 524
The department shall have final approval for any grant under 525
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this section. 526
Section 9. Subsections (1), (4), and (5), paragraph (a) of 527
subsection (6), and paragraph (d) of subsection (8) of section 528
288.0656, Florida Statutes, are amended to read: 529
288.0656 Rural Economic Development Initiative. — 530
(1)(a) Recognizing tha t rural communities and regions 531
continue to face extraordinary challenges in their efforts to 532
significantly improve their economies, specifically in terms of 533
personal income, job creation, average wages, and strong tax 534
bases, it is the intent of the Legisl ature to encourage and 535
facilitate the location and expansion of major economic 536
development projects of significant scale in such rural 537
communities. 538
(b) The Rural Economic Development Initiative, known as 539
"REDI," is created within the department, and the participation 540
of state and regional agencies in this initiative is authorized. 541
In order to facilitate REDI review of rural communities and 542
regions, the department shall collect data, at least annually, 543
and report on state programs and their utilization and success 544
or lack thereof in rural communities or rural areas of 545
opportunity. The department shall use existing state agency data 546
when possible. 547
(4) Beginning October 1, 2022, REDI shall review and 548
evaluate biannually the impact of statutes and rules on r ural 549
communities and shall work to minimize any adverse impact and 550
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undertake outreach and capacity -building efforts. Upon the 551
request of a rural community or rural area of opportunity, REDI 552
shall review a department determination regarding using state 553
programs and whether a business qualifies to use state programs. 554
REDI may override a department determination that a business is 555
not qualified to use state programs, and the department must 556
accept such decision. 557
(5) Each REDI agency shall facilitate better a ccess to 558
state resources for rural communities by providing a designated 559
agency contract for promoting direct access and referrals to 560
appropriate state and regional agencies and statewide 561
organizations. REDI may undertake outreach, capacity -building, 562
and other advocacy efforts to improve conditions in rural 563
communities. These activities may include sponsorship of 564
conferences and achievement awards. REDI shall establish, 565
through the department, a direct -support organization to provide 566
such sponsorships and m ay raise private funds for such 567
activities. 568
(6)(a) By August 1 of each year, the head of each of the 569
following agencies and organizations shall designate a deputy 570
secretary or higher-level staff person from within the agency or 571
organization to serve as t he REDI representative for the agency 572
or organization: 573
1. The Department of Transportation. 574
2. The Department of Environmental Protection. 575
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3. The Department of Agriculture and Consumer Services. 576
4. The Department of State. 577
5. The Department of He alth. 578
6. The Department of Children and Families. 579
7. The Department of Corrections. 580
8. The Department of Education. 581
9. The Department of Juvenile Justice. 582
10. The Fish and Wildlife Conservation Commission. 583
11. Each water management district. 584
12. Enterprise Florida, Inc. 585
13. CareerSource Florida, Inc. 586
14. VISIT Florida. 587
15. The Florida Regional Planning Council Association. 588
16. The Agency for Health Care Administration. 589
17. The Institute of Food and Agricultural Sciences 590
(IFAS). 591
592
An alternate for each designee shall also be chosen, and the 593
names of the designees and alternates shall be sent to the 594
Secretary of Economic Opportunity. 595
(8) REDI shall submit a report to the department on all 596
REDI activities for the previous fiscal year a s a supplement to 597
the department's annual report required under s. 20.60. This 598
supplementary report must include: 599
(d) Recommendations based on the review and evaluation of 600
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state programs and recommendations on statutes and rules having 601
an adverse impact on rural communities and proposals to mitigate 602
such adverse impacts. 603
Section 10. Paragraph (b) of subsection (1) of section 604
288.1201, Florida Statutes, is amended to read: 605
288.1201 State Economic Enhancement and Development Trust 606
Fund.— 607
(1) There is created within the Department of Economic 608
Opportunity the State Economic Enhancement and Development Trust 609
Fund. Moneys deposited in the trust fund shall be used for 610
infrastructure and job creation opportunities and for the 611
following purposes or programs : 612
(b) Affordable housing programs and projects in accordance 613
with chapter 420, of which at least 10 percent of the funds 614
must be used for affordable housing programs in rural 615
communities; 616
Section 11. Section 288.9941, Florida Statutes, is created 617
to read: 618
288.9941 Legislative findings and intent. — 619
(1) The Legislature finds that while it is vital to the 620
overall health and growth of rural Florida's economy that small 621
businesses located in rural communities have access to capital, 622
that access is severely restricted by the lack of availability 623
of information and technical and financial assistance for those 624
small businesses. 625
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(2) The Legislature further finds that small businesses 626
located in rural communities can be assisted through the 627
establishment of a Florida Microfinance Corporation designed to 628
work with the federal Small Business Administration and other 629
federal, state, local, and private agencies and institutions to 630
provide small businesses with information and technical and 631
financial assistance. 632
(3) It is the intent of the Legislature to expand job 633
opportunities for Florida's workforce. 634
(4) Furthermore, it is the intent of the Legislature to 635
avoid duplicating existing programs and to coordinate, assist, 636
augment, and improve the access to existing programs by small 637
businesses located in rural communities. 638
Section 12. Section 288.9942, Florida Statutes, is created 639
to read: 640
288.9942 Definitions. —For purposes of ss. 288.9943 -641
288.9948, the term: 642
(1) "Account" means the Florida Microfina nce Corporation 643
Guarantee Account. 644
(2) "Applicant" means a small business requesting the 645
assistance of the corporation through the corporation's program. 646
(3) "Board" means the board of directors of the 647
corporation. 648
(4) "Corporation" means the Florida Microfinance 649
Corporation. 650
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(5) "Department" means the Department of Economic 651
Opportunity. 652
(6) "Financial institution" has the same meaning as in s. 653
655.005(1). 654
(7) "President" means the chief executive officer of the 655
corporation. 656
(8) "Small business" or "business" means any business, 657
regardless of corporate structure, that is domiciled in the 658
state, is located in a rural community as defined in s. 659
288.0656(2), employs fewer than 25 people, and has a net worth 660
of less than $6 million. As used in this subsection, the term 661
"domiciled in the state" means authorized to do business in the 662
state. 663
Section 13. Section 288.9943, Florida Statutes, is created 664
to read: 665
288.9943 Florida Microfinance Corporation. — 666
(1) The Florida Microfinance Corpora tion is created as a 667
nonprofit corporation under chapter 617 and must be organized on 668
a nonstock basis. 669
(2) The purpose of the corporation is to expand employment 670
and income opportunities for residents in rural communities by: 671
(a) Increasing small busi nesses' access to capital. 672
(b) Providing small businesses with information and 673
technical assistance relating to business and financing 674
opportunities and business techniques. 675
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(c) Providing small businesses with financial assistance 676
through loan guarante es, direct loans, and other supporting 677
investments. 678
(3) The corporation must create a program to: 679
(a) Provide small businesses with access to capital to 680
increase job opportunities and productivity. 681
(b) Coordinate its efforts with programs and goals o f the 682
federal Small Business Administration and other federal or state 683
agencies and private organizations designed to provide technical 684
assistance and access to capital to small businesses. 685
(c) Establish a network of contacts among public and 686
private organizations to provide information, technical 687
assistance, and access to capital to small businesses. 688
(d) Assemble, publish, and disseminate information to 689
provide small businesses with access to capital, technical 690
assistance, and sources of public and pri vate financial 691
assistance. 692
(e) Organize and host seminars to provide technical 693
assistance to small businesses. 694
(f) Insure, coinsure, lend, guarantee loans, make 695
investments, offer microloans, and originate for sale microloans 696
extended to small business es pursuant to criteria set forth in 697
bylaws and policies adopted by the board. 698
(4) The corporation may charge fees, as determined by the 699
board, to defray the operating expenses of the program. The 700
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financial operations of the corporation must be managed t o 701
promote financial self -sufficiency for the corporation. 702
(5) In determining the total amount of funds to be 703
released from the account for loans, guarantees, investments, 704
direct loan originations for sale, and insured transactions, the 705
corporation may not release more than four times the amount of 706
the balance of the account. 707
Section 14. Section 288.9944, Florida Statutes, is created 708
to read: 709
288.9944 Board of directors; powers; duties. — 710
(1)(a) The corporation shall have a board of directors 711
consisting of 10 members representing various geographic areas 712
of the state. Minority and gender representation shall be 713
considered when making appointments to the board. At least one -714
third of the members must have experience in direct lending to 715
small businesses. The board membership must include: 716
1. The president or chief executive officer of a statewide 717
economic development lender with experience in direct lending to 718
small businesses, appointed by the Governor. 719
2. The president or chief executive officer o f two small 720
businesses from rural communities, appointed by the Governor. 721
3. The president or chief executive officer of a statewide 722
entity devoted to providing assistance to small businesses, 723
appointed by the Governor. 724
4. Seven other members, appointe d by the board. 725
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(b) Board members shall serve 4 -year terms and shall be 726
eligible for reappointment. Vacancies on the board shall be 727
filled by the board within 30 days after the effective date of 728
the vacancy. 729
(c) Board members shall serve without compen sation but may 730
be reimbursed for all necessary expenses in the performance of 731
their duties, including attending board meetings and conducting 732
board business. 733
(d) The board shall hold regularly scheduled meetings, at 734
least quarterly, to carry out the obje ctives and 735
responsibilities of the corporation. 736
(2)(a) The board must develop an application and review 737
process for small businesses to use in applying for insurance, 738
coinsurance, loans, loan guarantees, investments, or direct loan 739
originations for sale. 740
(b) The board must approve any extension of insurance, 741
coinsurance, loans, loan guarantees, investments, or direct loan 742
originations for sale that is made under this part if an 743
applicant meets the criteria established by the board. 744
(3) The board must ensure that the program it establishes, 745
to the extent practicable, is not duplicative of existing, 746
complementary programs and makes full use of the resources of 747
those other programs. 748
(4) The board must work to secure delegated authority from 749
appropriate federal or state agencies and private organizations 750
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in order to take advantage of other sources of assistance for 751
small businesses. 752
Section 15. Section 288.9945, Florida Statutes, is created 753
to read: 754
288.9945 President of the corporation; powers; du ties.— 755
(1) The board shall appoint a president of the 756
corporation. The president must be knowledgeable of public and 757
private small business financial assistance programs. 758
(2) The president serves at the pleasure of the board and 759
shall receive a salary and benefits as shall be fixed by the 760
board. 761
(3) The president shall administer the program of the 762
corporation and perform such duties as shall be delegated by the 763
board. 764
(4) The president may, upon approval of the board: 765
(a) Contract for services. 766
(b) Hold public hearings. 767
(c) Call upon and reimburse any state agency or department 768
for services rendered in assisting or carrying out the program. 769
(d) Participate in public and private programs that offer 770
technical assistance, loans, technology tran sfer, or any other 771
related services 772
(e) Undertake or commission studies on methods to increase 773
financial assistance resources available to small businesses. 774
(f) Hire staff and provide small business finance training 775
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for the staff and other individuals involved in small business 776
financial assistance, including such training sessions as may be 777
provided by the federal Small Business Administration and other 778
federal or state agencies and private organizations. 779
(g) Exercise any other powers as may be nece ssary to carry 780
out the purposes of this part. 781
(5) The president shall provide staff to the board as 782
requested. 783
(6) The president must submit an annual budget to be 784
approved by the board. 785
Section 16. Section 288.9946, Florida Statutes, is created 786
to read: 787
288.9946 Board policies and bylaws. —The board shall adopt: 788
(1) Policies and bylaws necessary to carry out its 789
responsibilities relating to the implementation of the 790
corporation's program to insure, coinsure, lend, invest, provide 791
loan guarantees, and make direct, guaranteed, or collateralized 792
loans to small businesses before the corporation releases funds 793
from the account. 794
(2) Policies to establish eligibility criteria for small 795
businesses to receive assistance from the corporation, including 796
policies to: 797
(a) Ensure that an individual signing on behalf of an 798
applicant has equity in the applicant. 799
(b) Ensure that the program exclusively supports small 800
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businesses and that a small business's funding from the 801
corporation remains unaffected if th e small business changes its 802
name or experiences personnel changes. 803
(c) Ensure the full repayment of loans and loan 804
guarantees, plus accrued interest, full -recourse claims, and 805
indemnities on direct loan originations sold by the corporation, 806
appropriate liquidation of any investments, and the solvency of 807
any insurance and coinsurance program extended under this part. 808
(d) Establish the terms and limits for loans, guarantees, 809
investments, and direct loan originations. However, a loan 810
guarantee may not exc eed 90 percent of the guaranteed loan, and 811
outstanding direct loans or investments may not exceed $50,000 812
per small business. 813
(e) Ensure that small businesses receiving assistance 814
through the program do not receive more than $100,000 in funds 815
over any 5-year period. On a case -by-case basis, the board may 816
exempt small businesses from this limitation if the small 817
business demonstrates that it cannot secure financing from other 818
sources. 819
Section 17. Section 288.9947, Florida Statutes, is created 820
to read: 821
288.9947 Florida Microfinance Corporation Guarantee 822
Account.— 823
(1) The board shall create the Florida Microfinance 824
Corporation Guarantee Account to receive federal, state, and 825
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private financial resources, to receive returns from loans or 826
investments previously granted or issued, and for other purposes 827
consistent with this part. The account is under the exclusive 828
control of the board. 829
(2) Funds in the account shall be allocated for operating 830
expenses of the corporation and for other purposes authorized in 831
this part. 832
(3) All funds for the corporation shall be deposited into 833
the account. 834
(a) The board may deposit a portion of the funds in the 835
account with the state or any state or federally chartered 836
financial institution in the state and may invest th e remaining 837
portion in permissible securities. 838
(b) At all times, the board must attempt to maximize the 839
returns on funds. 840
(c) The board must redeposit into the account all funds it 841
receives from any activity of the corporation, which must be 842
reallocated exclusively to support the purposes of this part. 843
(4) Claims against the account shall be paid solely from 844
the account. The credit of the state may not be pledged, other 845
than funds appropriated by law to the account, and the state is 846
not liable or obligated in any way for claims on the account or 847
against the corporation. 848
Section 18. Section 288.9948, Florida Statutes, is created 849
to read: 850
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288.9948 Annual report. —By March 31 of each year, the 851
corporation shall submit an annual report to the departme nt that 852
evaluates the activities of the corporation and makes 853
recommendations for changes. The report must also include the 854
corporation's impact on the following: 855
(1) Participation of financial institutions and other 856
private organizations and individuals in the corporation's small 857
business financing program. 858
(2) The success of small businesses in the state in 859
accessing federal financing programs. 860
(3) A summary of the financial and employment results of 861
small businesses that utilize the corporation's p rogram. 862
(4) The corporation's assets and liabilities at the end of 863
its most recent fiscal year. 864
(5) Other economic and social benefits provided by the 865
corporation. 866
Section 19. Paragraph (a) of subsection (9) of section 867
290.0056, Florida Statutes, i s amended to read: 868
290.0056 Enterprise zone development agency. — 869
(9) The following powers and responsibilities shall be 870
performed by the governing body creating the enterprise zone 871
development agency acting as the managing agent of the 872
enterprise zone development agency, or, contingent upon approval 873
by such governing body, such powers and responsibilities shall 874
be performed by the enterprise zone development agency: 875
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(a) To review, process, and certify applications for state 876
enterprise zone tax incenti ves pursuant to ss. 212.08(5) (g), 877
(h), and (15),; 212.096,; 220.181,; and 220.182. 878
Section 20. Section 290.007, Florida Statutes, is amended 879
to read: 880
290.007 State incentives available in enterprise and 881
opportunity zones.—The following incentives are provided by the 882
state to encourage the revitalization of enterprise and 883
opportunity zones: 884
(1) The enterprise zone jobs credit provided in s. 885
220.181. 886
(2) The enterprise zone property tax credit provided in s. 887
220.182. 888
(3) The community contribution tax credits provided in ss. 889
212.08, 220.183, and 624.5105. 890
(4) The sales tax exemption for building materials used in 891
the rehabilitation of real property in opportunity enterprise 892
zones provided in s. 212.08(5)(g). 893
(5) The sales tax exemption for business equipment used in 894
an enterprise zone provided in s. 212.08(5)(h). 895
(6) The sales tax exemption for electrical energy , natural 896
gas, or propane used in an opportunity enterprise zone provided 897
in s. 212.08(15). 898
(7) The enterprise zone jobs credit against the sales tax 899
provided in s. 212.096. 900
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(8) Notwithstanding any law to the contrary, the Public 901
Service Commission may allow public utilities and 902
telecommunications companies to grant discounts of up to 50 903
percent on tariffed rates for services to small businesses 904
located in an enterprise zone designated pursuant to s. 905
290.0065. Such discounts may be granted for a period not to 906
exceed 5 years. For purposes of this subsection, the term 907
"public utility" has the same meaning as in s. 366.02(1) and the 908
term "telecommunications company" has the same meaning as in s. 909
364.02(13). 910
Section 21. This act shall take effect July 1, 2022. 911