Bill Text: FL H1169 | 2010 | Regular Session | Comm Sub

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Bill Title: Florida Ports Investments

Spectrum: Partisan Bill (Republican 12-0)

Status: (Failed) 2010-04-30 - Died in Messages [H1169 Detail]

Download: Florida-2010-H1169-Comm_Sub.html

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CS/CS/HB 1169

1	A bill to be entitled
2	An act relating to Florida ports investments; creating s.
3	311.23, F.S.; providing a short title; providing a
4	purpose; providing definitions; creating the Florida Ports
5	Investment Corporation; subjecting the corporation to
6	certain public meetings and public records requirements;
7	providing authority and requirements for the corporation;
8	providing for a board of directors; providing for
9	appointment of board members; providing for investments by
10	the corporation in certain port projects; providing port
11	project funding criteria; providing requirements for
12	capital allocation and investments; providing requirements
13	for certain uninvested capital; providing requirements for
14	investments; providing for a premium tax credit; providing
15	for carryforward of the credit; providing limitations on
16	the credit; providing limitations on the amount of tax
17	credits; providing investment requirements; providing
18	procedures, requirements, and limitations for transfers of
19	unused credits; authorizing the corporation and the office
20	to charge certain fees; providing reporting requirements;
21	authorizing the Department of Revenue and the office to
22	adopt rules; amending s. 213.053, F.S.; authorizing the
23	Department of Revenue to provide certain information to
24	the office; providing an effective date.
25
26	Be It Enacted by the Legislature of the State of Florida:
27
28	Section 1. Section 311.23, Florida Statutes, is created to
29	read:
30	311.23 Florida Ports Investment Act.-
31	(1) SHORT TITLE.-This section may be cited as the "Florida
32	Ports Investment Act."
33	(2) PURPOSE.-The primary purpose of this section is to
34	stimulate a substantial increase in the state's port
35	infrastructure by providing an incentive for insurance companies
36	to invest in port activities in this state which, in turn, will
37	generate investments in new port projects or in expanding port
38	projects. The increase in investment capital flowing into new or
39	expanding port activities and businesses is intended to
40	contribute to employment growth, create jobs that exceed the
41	average wage for the county in which the jobs are created, and
42	expand or diversify the economic base of this state.
43	(3) DEFINITIONS.-As used in this section, the term:
44	(a) "Corporation" means the Florida Ports Investment
45	Corporation created under subsection (4).
46	(b) "Investment capital" means an investment of cash by a
47	participating investor in the corporation in exchange for the
48	tax credits provided in this section.
49	(c) "Office" means the Office of Tourism, Trade, and
50	Economic Development.
51	(d) "Participating investor" means any insurance company
52	subject to premium tax liability under s. 624.509 that
53	contributes investment capital pursuant to this section.
54	(e) "Premium tax liability" means any liability incurred
55	by an insurance company under s. 624.509.
56	(f) "Qualified port project" means the ports listed in s.
57	403.021(9)(b) or any associated business or project that uses
58	those ports for the movement of goods and people, as determined
59	by the corporation.
60	(4) FLORIDA PORTS INVESTMENT CORPORATION; CREATION;
61	AUTHORITY; BOARD OF DIRECTORS.-
62	(a) The Florida Ports Investment Corporation is created as
63	a corporation not for profit, to be incorporated under the
64	provisions of chapter 617 and approved by the Department of
65	State, and is not a unit or entity of state government. However,
66	the Legislature determines that public policy dictates that the
67	corporation operate in the most open and accessible manner
68	consistent with its public purpose. Therefore, the Legislature
69	specifically declares that the corporation and its advisory
70	company are subject to the public records and meetings
71	requirements of chapters 119 and 286. The corporation:
72	1. May receive, hold, invest, and administer funds and
73	make expenditures consistent with the purposes of this section.
74	2. May make purchases, sales, exchanges, investments, and
75	reinvestments for and on behalf of the funds received pursuant
76	to this section.
77	3. Shall retain at least one investment advisory company
78	to assist the corporation in carrying out the provisions of this
79	section. Any such company must be retained pursuant to the
80	provisions of s. 287.055 and must have a minimum of 5 years'
81	experience raising investment capital from similar investors,
82	with not less than $100 million actually raised from insurance
83	companies seeking a tax credit similar to that provided by this
84	section.
85	(b) The corporation shall be governed by a board of
86	directors comprised of:
87	1. The director of the office.
88	2. Two members appointed by the Governor, two members
89	appointed by the President of the Senate, and two members
90	appointed by the Speaker of the House of Representatives.
91	Appointed members must have significant experience in
92	international business, transportation, law, or logistics.
93	Appointed members are subject to any restrictions on conflicts
94	of interest specified in the organizational documents of the
95	corporation and may not have any interest in any investments
96	made by the corporation pursuant to subsection (5). Each
97	appointed member shall be appointed for a term of 4 years. A
98	vacancy on the board shall be filled by the appointing official
99	for the member whose vacancy is to be filled or whose term has
100	expired. An appointed member may be removed by the appointing
101	official for that member, for cause. Absence from three
102	consecutive meetings shall result in automatic removal. Any
103	member is eligible for reappointment.
104	3. The chair of the Florida Seaport Transportation and
105	Economic Development Council shall serve as an ex officio co-
106	director of the board.
107	4. The Secretary of Transportation or his or her designee
108	shall serve as an ex officio, nonvoting co-director of the
109	board.
110	5. Members of the board shall serve without compensation,
111	but may be reimbursed for all reasonable, necessary, and actual
112	expenses as determined and approved by the board pursuant to s.
113	112.061.
114	(5) INVESTMENTS BY THE CORPORATION IN PORT PROJECTS AND
115	PORT-RELATED ACTIVITIES.-
116	(a)1. The corporation shall seek to maintain the state's
117	advantage in ports and related industries. In order to maintain
118	that advantage, the corporation shall fund freight mobility
119	projects that improve throughput or provide long-term congestion
120	relief for freight movement for a part of the state's
121	transportation network and improve economic productivity for the
122	state or the region in which projects are located. Freight
123	mobility projects include on-port projects that meet the
124	Department of Transportation's Strategic Intermodal System
125	criteria and regionally significant freight projects that are
126	eligible for federal financial assistance consistent with
127	criteria developed for federal freight transportation grant
128	programs, including, but not limited to, the Transportation
129	Investment Generating Economic Recovery (TIGER), Projects of
130	National and Regional Significance (PNRS), National
131	Infrastructure Investment (NII), and the National Corridor
132	Infrastructure Improvement (NCII) program.
133	2. The capital received under this section shall be
134	allocated to eligible projects by July 1, 2012, or held in
135	accordance with paragraph (b).
136	3. Funding for such projects shall be on a matching basis
137	as determined by the corporation, except that at least 25
138	percent of total project funds must come from port funds, local
139	funds, private funds, or federal funds.
140	(b) The corporation shall hold all capital received under
141	this section that is not invested in qualified port projects and
142	such capital:
143	1. Must be held in a financial institution as defined by
144	s. 655.005(1)(h) or held by a broker-dealer registered under s.
145	517.12.
146	2. Must be invested only in:
147	a. United States Treasury obligations;
148	b. Certificates of deposit or other obligations, maturing
149	within 3 years after acquisition of such certificates or
150	obligations, issued by any financial institution or trust
151	company incorporated under the laws of the United States;
152	c. Marketable obligations, maturing within 5 years or less
153	after the acquisition of such obligations, which are rated "A"
154	or better by any nationally recognized credit rating agency; or
155	d. Interests in money market funds, the portfolio of which
156	is limited to cash and obligations described in sub-
157	subparagraphs a.-c.
158	(c) All investment decisions shall be made by the
159	corporation, which must certify that each project is of a
160	beneficial nature to a port listed in s. 403.021(9)(b), is ready
161	to proceed within 60 days for design, construction, and
162	permitting, and will create a lasting economic impact as
163	determined by the board. Applications for funding by qualified
164	port projects must be made to the corporation. The board may
165	establish procedural rules for the application form, application
166	procedures, and criteria for making investment decisions based
167	upon the requirements established in this paragraph.
168	(6) PREMIUM TAX CREDIT; AMOUNT; LIMITATIONS.-
169	(a) Any participating investor who makes an investment of
170	investment capital shall earn a vested credit against premium
171	tax liability equal to 100 percent of the face amount of the
172	credits purchased by the participating investor and such
173	investments may not be subject to recapture, disallowance,
174	forfeiture, or reduction. Participating investors shall be
175	entitled to use no more than 10 percentage points of the vested
176	premium tax credit, including any carryforward credits under
177	this section, per year beginning with premium tax filings for
178	calendar year 2012. Any premium tax credits not used by
179	participating investors in any single year may be carried
180	forward and applied against the premium tax liabilities of such
181	investors for subsequent calendar years. The carryforward credit
182	may be applied against subsequent premium tax filings through
183	calendar year 2029.
184	(b) The credit to be applied against premium tax liability
185	in any single year may not exceed the premium tax liability of
186	the participating investor for that taxable year.
187	(c) A participating investor claiming a credit against
188	premium tax liability earned through an investment in the
189	corporation is not required to pay any additional retaliatory
190	tax levied pursuant to s. 624.5091 as a result of claiming such
191	credit. Because credits under this section are available to a
192	participating investor, s. 624.5091 does not limit such credit
193	in any manner.
194	(7) ANNUAL TAX CREDIT; MAXIMUM AMOUNT.-
195	(a) The total amount of tax credits which may be allocated
196	by the office may not exceed $100 million. The total amount of
197	tax credits which may be used by participating investors under
198	this section may not exceed $10 million annually.
199	(b) The office shall be responsible for allocating premium
200	tax credits as provided for in this section to participating
201	investors. A participating investor must submit an application
202	to the office for the tax credit authorized in this section.
203	(8) TRANSFER OF TAX CREDITS.-
204	(a) Upon application to and approval by the office, a
205	participating investor may elect to transfer, in whole or in
206	part, any unused credit amount granted under this section. The
207	office shall notify the Department of Revenue of the election
208	and transfer.
209	(b) A participating investor that elects to apply a credit
210	amount against taxes remitted under s. 624.509 is permitted a
211	one-time transfer of unused credits to one transferee, and such
212	transfer must occur in the same taxable year.
213	(c) The transferee is subject to the same rights and
214	limitations as the participating investor awarded the tax
215	credit, except that the transferee may not sell or otherwise
216	transfer the tax credit.
217	(9) FEES.-The corporation may charge reasonable fees for
218	administering and processing applications by qualified port
219	projects for funding pursuant to paragraph (5)(c), and the
220	office may charge reasonable fees for administering and
221	processing applications by participating investors for tax
222	credits pursuant to subsection (7). Any fee charged by the
223	corporation or office under this subsection for an application
224	may not exceed the actual cost incurred by the corporation or
225	office in administering and processing any application for
226	funding or a tax credit.
227	(10) REPORTING REQUIREMENTS.-The office shall report on an
228	annual basis to the Governor, the President of the Senate, and
229	the Speaker of the House of Representatives on or before
230	February 1:
231	(a) The total dollar amount received by the corporation
232	from all participating investors and any other investor, the
233	identity of the participating investors, and the total amount of
234	premium tax credit used by each participating investor for the
235	previous calendar year.
236	(b) The total dollar amount invested by the corporation in
237	qualified port projects, the identity and location of those
238	projects, the amount invested in each qualified port project,
239	and the total number of permanent, full-time jobs created or
240	retained by each qualified port project.
241	(c) The return for the state as a result of the
242	investments in qualified port projects, including the extent to
243	which:
244	1. Investments have contributed to employment growth.
245	2. The wage level of businesses in which the corporation
246	has invested exceeds the average wage for the county in which
247	the jobs are located.
248	3. The investments of the corporation in qualified port
249	projects have contributed to expanding or diversifying the
250	economic base of the state.
251	(11) RULEMAKING AUTHORITY.-
252	(a) The Department of Revenue may adopt rules pursuant to
253	ss. 120.536(1) and 120.54 to administer this section, including,
254	but not limited to, rules governing the examination and audit
255	procedures required to administer this section and the manner
256	and form of documentation required to claim tax credits awarded
257	or transferred under this section.
258	(b) The office may adopt rules pursuant to ss. 120.536(1)
259	and 120.54 and develop procedures to administer this section,
260	including, but not limited to, rules specifying requirements for
261	the application and approval process, records required for
262	substantiation for tax credits, and the manner and form of
263	documentation required to claim tax credits awarded or
264	transferred under this section.
265	Section 2. Paragraph (z) is added to subsection (8) of
266	section 213.053, Florida Statutes, to read:
267	213.053 Confidentiality and information sharing.-
268	(8) Notwithstanding any other provision of this section,
269	the department may provide:
270	(z) Information relating to tax credits taken under s.
271	624.509 to the Office of Tourism, Trade, and Economic
272	Development.
273
274	Disclosure of information under this subsection shall be
275	pursuant to a written agreement between the executive director
276	and the agency. Such agencies, governmental or nongovernmental,
277	shall be bound by the same requirements of confidentiality as
278	the Department of Revenue. Breach of confidentiality is a
279	misdemeanor of the first degree, punishable as provided by s.
280	775.082 or s. 775.083.
281	Section 3. This act shall take effect July 1, 2010.

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