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

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-Comm_Sub.html

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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; specifying
11	allocations of certain funds for certain port activities,
12	investments, and education; providing requirements for
13	capital allocation and investments; providing requirements
14	for certain 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
19	procedures, requirements, and limitations for transfers of
20	unused credits; authorizing the corporation and the office
21	to charge certain fees; providing reporting requirements;
22	authorizing the Department of Revenue and the office to
23	adopt rules; amending s. 213.053, F.S.; authorizing the
24	Department of Revenue to provide certain information to
25	the office; providing an effective date.
26
27	Be It Enacted by the Legislature of the State of Florida:
28
29	Section 1. Section 311.23, Florida Statutes, is created to
30	read:
31	311.23 Florida Ports Investment Act.-
32	(1) SHORT TITLE.-This section may be cited as the "Florida
33	Ports Investment Act."
34	(2) PURPOSE.-The primary purpose of this section is to
35	stimulate a substantial increase in the state's port
36	infrastructure by providing an incentive for insurance companies
37	to invest in port activities in this state which, in turn, will
38	generate investments in new port projects or in expanding port
39	projects. The increase in investment capital flowing into new or
40	expanding port activities and businesses is intended to
41	contribute to employment growth, create jobs that exceed the
42	average wage for the county in which the jobs are created, and
43	expand or diversify the economic base of this state.
44	(3) DEFINITIONS.-As used in this section, the term:
45	(a) "Corporation" means the Florida Ports Investment
46	Corporation created under subsection (4).
47	(b) "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	(c) "Office" means the Office of Tourism, Trade, and
51	Economic Development.
52	(d) "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	(e) "Premium tax liability" means any liability incurred
56	by an insurance company under s. 624.509.
57	(f) "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 Florida Ports Investment Corporation is created as
64	a corporation not for profit, to be incorporated under the
65	provisions of chapter 617 and approved by the Department of
66	State, and is not a unit or entity of state government. However,
67	the Legislature determines that public policy dictates that the
68	corporation operate in the most open and accessible manner
69	consistent with its public purpose. Therefore, the Legislature
70	specifically declares that the corporation and its advisory
71	company are subject to the public records and meetings
72	requirements of chapters 119 and 286. The corporation:
73	1. May receive, hold, invest, and administer funds and
74	make expenditures consistent with the purposes of this section.
75	2. May make purchases, sales, exchanges, investments, and
76	reinvestments for and on behalf of the funds received pursuant
77	to this section.
78	3. Shall retain at least one investment advisory company
79	to assist the corporation in carrying out the provisions of this
80	section. Any such company must be retained pursuant to the
81	provisions of s. 287.055 and must have a minimum of 5 years'
82	experience raising investment capital from similar investors,
83	with not less than $100 million actually raised from insurance
84	companies seeking a tax credit similar to that provided by this
85	section.
86	(b) The corporation shall be governed by a board of
87	directors comprised of:
88	1. The director of the office.
89	2. Two members appointed by the Governor, two members
90	appointed by the President of the Senate, and two members
91	appointed by the Speaker of the House of Representatives.
92	Appointed members must have significant experience in
93	international business, transportation, law, or logistics.
94	Appointed members are subject to any restrictions on conflicts
95	of interest specified in the organizational documents of the
96	corporation and may not have any interest in any investments
97	made by the corporation pursuant to subsection (5). Each
98	appointed member shall be appointed for a term of 4 years. A
99	vacancy on the board shall be filled by the appointing official
100	for the member whose vacancy is to be filled or whose term has
101	expired. An appointed member may be removed by the appointing
102	official for that member, for cause. Absence from three
103	consecutive meetings shall result in automatic removal. Any
104	member is eligible for reappointment.
105	3. The chair of the Florida Seaport Transportation and
106	Economic Development Council shall serve as an ex officio co-
107	director of the board.
108	4. The Secretary of Transportation or his or her designee
109	shall serve as an ex officio, nonvoting co-director of the
110	board.
111	5. Members of the board shall serve without compensation,
112	but may be reimbursed for all reasonable, necessary, and actual
113	expenses as determined and approved by the board pursuant to s.
114	112.061.
115	(5) INVESTMENTS BY THE CORPORATION IN PORT PROJECTS AND
116	PORT-RELATED ACTIVITIES.-
117	(a)1. The corporation shall seek to maintain the state's
118	advantage in ports and related industries. In order to maintain
119	that advantage, the corporation shall:
120	a. Allocate at least 65 percent of the capital received
121	under this section to on-port activities or infrastructure as
122	described in s. 315.02(6).
123	b. Allocate at least 25 percent of the capital received
124	under this section to off-port activities or infrastructure that
125	improve the movement and intermodal transportation of cargo or
126	passengers in commerce and trade and that will support the
127	interests, purposes, and requirements of ports specified in s.
128	403.021(9).
129	c. Allocate at least 5 percent of the remaining capital
130	received under this section to education related to ports and
131	port-related studies under the New Florida Initiative developed
132	by the Florida Board of Governors of the State University
133	System.
134	2. The capital received under this section shall be
135	allocated by July 1, 2012, or held in accordance with paragraph
136	(b).
137	3. Funding for such projects shall be on a matching basis
138	as determined by the corporation, except that at least 25
139	percent of total project funds must come from port funds, local
140	funds, private funds, or federal funds.
141	4. An individual port project may not consume more than 15
142	percent of the total revenues of the corporation's intake.
143	(b) The corporation shall hold all capital received under
144	this section that is not invested in qualified port projects and
145	such capital:
146	1. Must be held in a financial institution as defined by
147	s. 655.005(1)(h) or held by a broker-dealer registered under s.
148	517.12.
149	2. Must be invested only in:
150	a. United States Treasury obligations;
151	b. Certificates of deposit or other obligations, maturing
152	within 3 years after acquisition of such certificates or
153	obligations, issued by any financial institution or trust
154	company incorporated under the laws of the United States;
155	c. Marketable obligations, maturing within 5 years or less
156	after the acquisition of such obligations, which are rated "A"
157	or better by any nationally recognized credit rating agency; or
158	d. Interests in money market funds, the portfolio of which
159	is limited to cash and obligations described in sub-
160	subparagraphs a.-c.
161	(c) All investment decisions shall be made by the
162	corporation, which must certify that each project is of a
163	beneficial nature to a port listed in s. 403.021(9)(b), is ready
164	to proceed within 60 days for design, construction, and
165	permitting, and will create a lasting economic impact as
166	determined by the board. Applications for funding by qualified
167	port projects must be made to the corporation. The board may
168	establish procedural rules for the application form, application
169	procedures, and criteria for making investment decisions based
170	upon the requirements established in this paragraph.
171	(6) PREMIUM TAX CREDIT; AMOUNT; LIMITATIONS.-
172	(a) Any participating investor who makes an investment of
173	investment capital shall earn a vested credit against premium
174	tax liability equal to 100 percent of the face amount of the
175	credits purchased by the participating investor and such
176	investments may not be subject to recapture, disallowance,
177	forfeiture, or reduction. Participating investors shall be
178	entitled to use no more than 10 percentage points of the vested
179	premium tax credit, including any carryforward credits under
180	this section, per year beginning with premium tax filings for
181	calendar year 2012. Any premium tax credits not used by
182	participating investors in any single year may be carried
183	forward and applied against the premium tax liabilities of such
184	investors for subsequent calendar years. The carryforward credit
185	may be applied against subsequent premium tax filings through
186	calendar year 2029.
187	(b) The credit to be applied against premium tax liability
188	in any single year may not exceed the premium tax liability of
189	the participating investor for that taxable year.
190	(c) A participating investor claiming a credit against
191	premium tax liability earned through an investment in the
192	corporation is not required to pay any additional retaliatory
193	tax levied pursuant to s. 624.5091 as a result of claiming such
194	credit. Because credits under this section are available to a
195	participating investor, s. 624.5091 does not limit such credit
196	in any manner.
197	(d) The amount of tax credits vested under this section
198	may not be considered in ratemaking proceedings involving a
199	participating investor.
200	(7) ANNUAL TAX CREDIT; MAXIMUM AMOUNT.-
201	(a) The total amount of tax credits which may be allocated
202	by the office may not exceed $100 million. The total amount of
203	tax credits which may be used by participating investors under
204	this section may not exceed $10 million annually.
205	(b) The office shall be responsible for allocating premium
206	tax credits as provided for in this section to participating
207	investors. A participating investor must submit an application
208	to the office for the tax credit authorized in this section.
209	(8) TRANSFER OF TAX CREDITS.-
210	(a) Upon application to and approval by the office, a
211	participating investor may elect to transfer, in whole or in
212	part, any unused credit amount granted under this section. The
213	office shall notify the Department of Revenue of the election
214	and transfer.
215	(b) A participating investor that elects to apply a credit
216	amount against taxes remitted under s. 624.509 is permitted a
217	one-time transfer of unused credits to one transferee, and such
218	transfer must occur in the same taxable year.
219	(c) The transferee is subject to the same rights and
220	limitations as the participating investor awarded the tax
221	credit, except that the transferee may not sell or otherwise
222	transfer the tax credit.
223	(9) FEES.-The corporation may charge reasonable fees for
224	administering and processing applications by qualified port
225	projects for funding pursuant to paragraph (5)(c), and the
226	office may charge reasonable fees for administering and
227	processing applications by participating investors for tax
228	credits pursuant to subsection (7). Any fee charged by the
229	corporation or office under this subsection for an application
230	may not exceed the actual cost incurred by the corporation or
231	office in administering and processing any application for
232	funding or a tax credit.
233	(10) REPORTING REQUIREMENTS.-The office shall report on an
234	annual basis to the Governor, the President of the Senate, and
235	the Speaker of the House of Representatives on or before
236	February 1:
237	(a) The total dollar amount received by the corporation
238	from all participating investors and any other investor, the
239	identity of the participating investors, and the total amount of
240	premium tax credit used by each participating investor for the
241	previous calendar year.
242	(b) The total dollar amount invested by the corporation in
243	qualified port projects, the identity and location of those
244	projects, the amount invested in each qualified port project,
245	and the total number of permanent, full-time jobs created or
246	retained by each qualified port project.
247	(c) The return for the state as a result of the
248	investments in qualified port projects, including the extent to
249	which:
250	1. Investments have contributed to employment growth.
251	2. The wage level of businesses in which the corporation
252	has invested exceeds the average wage for the county in which
253	the jobs are located.
254	3. The investments of the corporation in qualified port
255	projects have contributed to expanding or diversifying the
256	economic base of the state.
257	(11) RULEMAKING AUTHORITY.-
258	(a) The Department of Revenue may adopt rules pursuant to
259	ss. 120.536(1) and 120.54 to administer this section, including,
260	but not limited to, rules governing the examination and audit
261	procedures required to administer this section and the manner
262	and form of documentation required to claim tax credits awarded
263	or transferred under this section.
264	(b) The office may adopt rules pursuant to ss. 120.536(1)
265	and 120.54 and develop procedures to administer this section,
266	including, but not limited to, rules specifying requirements for
267	the application and approval process, records required for
268	substantiation for tax credits, and the manner and form of
269	documentation required to claim tax credits awarded or
270	transferred under this section.
271	Section 2. Paragraph (z) is added to subsection (8) of
272	section 213.053, Florida Statutes, to read:
273	213.053 Confidentiality and information sharing.-
274	(8) Notwithstanding any other provision of this section,
275	the department may provide:
276	(z) Information relating to tax credits taken under s.
277	624.509 to the Office of Tourism, Trade, and Economic
278	Development.
279
280	Disclosure of information under this subsection shall be
281	pursuant to a written agreement between the executive director
282	and the agency. Such agencies, governmental or nongovernmental,
283	shall be bound by the same requirements of confidentiality as
284	the Department of Revenue. Breach of confidentiality is a
285	misdemeanor of the first degree, punishable as provided by s.
286	775.082 or s. 775.083.
287	Section 3. This act shall take effect July 1, 2010.

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