Bill Text: FL H1169 | 2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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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; requiring the Office of
5	Tourism, Trade, and Economic Development to establish the
6	Florida Ports Investment Corporation; providing authority
7	and requirements for the corporation; providing for a
8	board of directors; providing for appointment of board
9	members; providing for investments by the corporation in
10	certain port projects; specifying allocations of certain
11	funds for certain port activities, investments, and
12	education; providing requirements for capital allocation
13	and investments; providing requirements for certain
14	uninvested capital; providing requirements for
15	investments; providing for a premium tax credit; providing
16	for carryforward of the credit; providing limitations on
17	the credit; providing limitations on the amount of tax
18	credits; providing investment requirements; providing for
19	transferability of unused credits; authorizing the
20	corporation and the office to charge certain fees;
21	providing reporting requirements; authorizing the
22	Department of Revenue and the office to adopt rules;
23	providing an effective date.
24
25	Be It Enacted by the Legislature of the State of Florida:
26
27	Section 1. Section 311.23, Florida Statutes, is created to
28	read:
29	311.23 Florida Ports Investment Act.-
30	(1) SHORT TITLE.-This section may be cited as the "Florida
31	Ports Investment Act."
32	(2) PURPOSE.-The primary purpose of this section is to
33	stimulate a substantial increase in the state's port
34	infrastructure by providing an incentive for insurance companies
35	to invest in port activities in this state which, in turn, will
36	generate investments in new port projects or in expanding port
37	projects. The increase in investment capital flowing into new or
38	expanding port activities and businesses is intended to
39	contribute to employment growth, create jobs that exceed the
40	average wage for the county in which the jobs are created, and
41	expand or diversify the economic base of this state.
42	(3) DEFINITIONS.-As used in this section, the term:
43	(a) "Corporation" means the Florida Ports Investment
44	Corporation established by the office under subsection (4).
45	(b) "Department" means the Department of Financial
46	Services.
47	(c) "Investment capital" means an investment of cash by a
48	participating investor in the corporation in exchange for the
49	tax credits provided in this section.
50	(d) "Office" means the Office of Tourism, Trade, and
51	Economic Development.
52	(e) "Participating investor" means any insurance company
53	subject to premium tax liability under s. 624.509 that
54	contributes investment capital pursuant to this section.
55	(f) "Premium tax liability" means any liability incurred
56	by an insurance company under s. 624.509.
57	(g) "Qualified port project" means the ports listed in s.
58	403.021(9)(b) or any associated business or project that uses
59	those ports for the movement of goods and people, as determined
60	by the corporation.
61	(4) FLORIDA PORTS INVESTMENT CORPORATION; CREATION;
62	AUTHORITY; BOARD OF DIRECTORS.-
63	(a) The office, in cooperation with the department, shall
64	establish the Florida Ports Investment Corporation as a
65	corporation not for profit, to be incorporated under the
66	provisions of chapter 617 and approved by the Department of
67	State. The corporation:
68	1. May receive, hold, invest, and administer funds and
69	make expenditures consistent with the purposes of this section.
70	2. May make purchases, sales, exchanges, investments, and
71	reinvestments for and on behalf of the funds received pursuant
72	to this section.
73	3. Shall retain at least one investment advisory company
74	to assist the corporation in carrying out the provisions of this
75	section. Any such company must be retained pursuant to the
76	provisions of s. 287.055 and must have a minimum of 5 years'
77	experience raising investment capital from similar investors,
78	with not less than $100 million actually raised from insurance
79	companies seeking a tax credit similar to that provided by this
80	section.
81	(b) The corporation shall be governed by a board of
82	directors comprised of:
83	1. The director of the office.
84	2. Two members appointed by the Governor, two members
85	appointed by the President of the Senate, and two members
86	appointed by the Speaker of the House of Representatives.
87	Appointed members must have significant experience in
88	international business, transportation, law, or logistics.
89	Appointed members are subject to any restrictions on conflicts
90	of interest specified in the organizational documents of the
91	corporation and may not have any interest in any investments
92	made by the corporation pursuant to subsection (5). Each
93	appointed member shall be appointed for a term of 4 years. A
94	vacancy on the board shall be filled by the appointing official
95	for the member whose vacancy is to be filled or whose term has
96	expired. An appointed member may be removed by the appointing
97	official for that member, for cause. Absence from three
98	consecutive meetings shall result in automatic removal. Any
99	member is eligible for reappointment.
100	3. The chair of the Florida Seaport Transportation and
101	Economic Development Council shall serve as an ex officio
102	director of the board.
103	4. Members of the board shall serve without compensation,
104	but may be reimbursed for all reasonable, necessary, and actual
105	expenses as determined and approved by the board pursuant to s.
106	112.061.
107	(5) INVESTMENTS BY THE CORPORATION IN PORT PROJECTS AND
108	PORT-RELATED ACTIVITIES.-
109	(a)1. The corporation shall seek to maintain the state's
110	advantage in ports and related industries. In order to maintain
111	that advantage, the corporation shall:
112	a. Allocate at least 65 percent of the capital received
113	under this section to on-port activities or infrastructure as
114	described in s. 315.02(6).
115	b. Allocate at least 25 percent of the capital received
116	under this section to off-port activities or infrastructure that
117	improve the movement and intermodal transportation of cargo or
118	passengers in commerce and trade and that will support the
119	interests, purposes, and requirements of ports specified in s.
120	403.021(9).
121	c. Allocate at least 5 percent of the remaining capital
122	received under this section to education related to ports and
123	port-related studies under the New Florida Initiative developed
124	by the Florida Board of Governors of the State University
125	System.
126	2. The capital received under this section shall be
127	allocated by July 1, 2012, or held in accordance with paragraph
128	(b).
129	3. An individual port project may not consume more than 15
130	percent of the total revenues of the corporation's intake.
131	(b) The corporation shall hold all capital received under
132	this section that is not invested in qualified port projects and
133	such capital:
134	1. Must be held in a financial institution as defined by
135	s. 655.005(1)(h) or held by a broker-dealer registered under s.
136	517.12.
137	2. Must be invested only in:
138	a. United States Treasury obligations;
139	b. Certificates of deposit or other obligations, maturing
140	within 3 years after acquisition of such certificates or
141	obligations, issued by any financial institution or trust
142	company incorporated under the laws of the United States;
143	c. Marketable obligations, maturing within 5 years or less
144	after the acquisition of such obligations, which are rated "A"
145	or better by any nationally recognized credit rating agency; or
146	d. Interests in money market funds, the portfolio of which
147	is limited to cash and obligations described in sub-
148	subparagraphs a.-c.
149	(c) All investment decisions shall be made by the
150	corporation which must certify that each project is of a
151	beneficial nature to a port listed in s. 403.021(9)(b), is ready
152	to proceed within 60 days for design, construction, and
153	permitting, and will create a lasting economic impact as defined
154	by the office by rule. Applications for funding by qualified
155	port projects must be made to the corporation under rules
156	adopted by the office.
157	(6) PREMIUM TAX CREDIT; AMOUNT; LIMITATIONS.-
158	(a) Any participating investor who makes an investment of
159	investment capital shall earn a vested credit against premium
160	tax liability equal to 100 percent of the investment capital
161	invested by the participating investor and such investments may
162	not be subject to recapture, disallowance, forfeiture, or
163	reduction. Participating investors shall be entitled to use no
164	more than 10 percentage points of the vested premium tax credit,
165	including any carryforward credits under this section, per year
166	beginning with premium tax filings for calendar year 2012. Any
167	premium tax credits not used by participating investors in any
168	single year may be carried forward and applied against the
169	premium tax liabilities of such investors for subsequent
170	calendar years. The carryforward credit may be applied against
171	subsequent premium tax filings through calendar year 2029.
172	(b) The credit to be applied against premium tax liability
173	in any single year may not exceed the premium tax liability of
174	the participating investor for that taxable year.
175	(c) A participating investor claiming a credit against
176	premium tax liability earned through an investment in the
177	corporation is not required to pay any additional retaliatory
178	tax levied pursuant to s. 624.5091 as a result of claiming such
179	credit. Because credits under this section are available to a
180	participating investor, s. 624.5091 does not limit such credit
181	in any manner.
182	(d) The amount of tax credits vested under this section
183	may not be considered in ratemaking proceedings involving a
184	participating investor.
185	(7) ANNUAL TAX CREDIT; MAXIMUM AMOUNT.-
186	(a) The total amount of tax credits which may be allocated
187	by the office may not exceed $500 million. The total amount of
188	tax credits which may be used by participating investors under
189	this section may not exceed $50 million annually.
190	(b) The office shall be responsible for allocating premium
191	tax credits as provided for in this section to participating
192	investors. A participating investor must submit an application
193	to the office for the tax credit authorized in this section.
194	(8) TRANSFERABILITY.-Tax credits may be freely transferred
195	by a participating investor to an affiliate or non-affiliate of
196	the investor, and all such transfers shall be subject to rules
197	adopted by the department.
198	(9) FEES.-The corporation may charge reasonable fees for
199	administering and processing applications by qualified port
200	projects for funding pursuant to paragraph (5)(c), and the
201	office may charge reasonable fees for administering and
202	processing applications by participating investors for tax
203	credits pursuant to subsection (7). Any fee charged by the
204	corporation or office under this subsection for an application
205	may not exceed the actual cost incurred by the corporation or
206	office in administering and processing any application for
207	funding or a tax credit.
208	(10) REPORTING REQUIREMENTS.-The office shall report on an
209	annual basis to the Governor, the President of the Senate, and
210	the Speaker of the House of Representatives on or before April
211	1:
212	(a) The total dollar amount received by the corporation
213	from all participating investors and any other investor, the
214	identity of the participating investors, and the total amount of
215	premium tax credit used by each participating investor for the
216	previous calendar year.
217	(b) The total dollar amount invested by the corporation in
218	qualified port projects, the identity and location of those
219	projects, the amount invested in each qualified port project,
220	and the total number of permanent, full-time jobs created or
221	retained by each qualified port project.
222	(c) The return for the state as a result of the
223	investments in qualified port projects, including the extent to
224	which:
225	1. Investments have contributed to employment growth.
226	2. The wage level of businesses in which the corporation
227	has invested exceeds the average wage for the county in which
228	the jobs are located.
229	3. The investments of the corporation in qualified port
230	projects have contributed to expanding or diversifying the
231	economic base of the state.
232	(11) RULEMAKING AUTHORITY.-
233	(a) The Department of Revenue may by rule prescribe forms
234	and procedures for the tax credit filings and audits.
235	(b) The office may adopt any rules necessary to carry out
236	its respective duties, obligations, and powers related to the
237	administration, review, and reporting provisions of this section
238	and may perform any other acts necessary for the proper
239	administration and enforcement of such duties, obligations, and
240	powers.
241	Section 2. This act shall take effect July 1, 2010.

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