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


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
CS/CS/HB 1169
1
A bill to be entitled
2An act relating to Florida ports investments; creating s.
3311.23, F.S.; providing a short title; providing a
4purpose; providing definitions; creating the Florida Ports
5Investment Corporation; subjecting the corporation to
6certain public meetings and public records requirements;
7providing authority and requirements for the corporation;
8providing for a board of directors; providing for
9appointment of board members; providing for investments by
10the corporation in certain port projects; providing port
11project funding criteria; providing requirements for
12capital allocation and investments; providing requirements
13for certain uninvested capital; providing requirements for
14investments; providing for a premium tax credit; providing
15for carryforward of the credit; providing limitations on
16the credit; providing limitations on the amount of tax
17credits; providing investment requirements; providing
18procedures, requirements, and limitations for transfers of
19unused credits; authorizing the corporation and the office
20to charge certain fees; providing reporting requirements;
21authorizing the Department of Revenue and the office to
22adopt rules; amending s. 213.053, F.S.; authorizing the
23Department of Revenue to provide certain information to
24the office; providing an effective date.
25
26Be It Enacted by the Legislature of the State of Florida:
27
28 Section 1. Section 311.23, Florida Statutes, is created to
29read:
30 311.23 Florida Ports Investment Act.-
31 (1) SHORT TITLE.-This section may be cited as the "Florida
32Ports Investment Act."
33 (2) PURPOSE.-The primary purpose of this section is to
34stimulate a substantial increase in the state's port
35infrastructure by providing an incentive for insurance companies
36to invest in port activities in this state which, in turn, will
37generate investments in new port projects or in expanding port
38projects. The increase in investment capital flowing into new or
39expanding port activities and businesses is intended to
40contribute to employment growth, create jobs that exceed the
41average wage for the county in which the jobs are created, and
42expand 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
45Corporation created under subsection (4).
46 (b) "Investment capital" means an investment of cash by a
47participating investor in the corporation in exchange for the
48tax credits provided in this section.
49 (c) "Office" means the Office of Tourism, Trade, and
50Economic Development.
51 (d) "Participating investor" means any insurance company
52subject to premium tax liability under s. 624.509 that
53contributes investment capital pursuant to this section.
54 (e) "Premium tax liability" means any liability incurred
55by an insurance company under s. 624.509.
56 (f) "Qualified port project" means the ports listed in s.
57403.021(9)(b) or any associated business or project that uses
58those ports for the movement of goods and people, as determined
59by the corporation.
60 (4) FLORIDA PORTS INVESTMENT CORPORATION; CREATION;
61AUTHORITY; BOARD OF DIRECTORS.-
62 (a) The Florida Ports Investment Corporation is created as
63a corporation not for profit, to be incorporated under the
64provisions of chapter 617 and approved by the Department of
65State, and is not a unit or entity of state government. However,
66the Legislature determines that public policy dictates that the
67corporation operate in the most open and accessible manner
68consistent with its public purpose. Therefore, the Legislature
69specifically declares that the corporation and its advisory
70company are subject to the public records and meetings
71requirements of chapters 119 and 286. The corporation:
72 1. May receive, hold, invest, and administer funds and
73make expenditures consistent with the purposes of this section.
74 2. May make purchases, sales, exchanges, investments, and
75reinvestments for and on behalf of the funds received pursuant
76to this section.
77 3. Shall retain at least one investment advisory company
78to assist the corporation in carrying out the provisions of this
79section. Any such company must be retained pursuant to the
80provisions of s. 287.055 and must have a minimum of 5 years'
81experience raising investment capital from similar investors,
82with not less than $100 million actually raised from insurance
83companies seeking a tax credit similar to that provided by this
84section.
85 (b) The corporation shall be governed by a board of
86directors comprised of:
87 1. The director of the office.
88 2. Two members appointed by the Governor, two members
89appointed by the President of the Senate, and two members
90appointed by the Speaker of the House of Representatives.
91Appointed members must have significant experience in
92international business, transportation, law, or logistics.
93Appointed members are subject to any restrictions on conflicts
94of interest specified in the organizational documents of the
95corporation and may not have any interest in any investments
96made by the corporation pursuant to subsection (5). Each
97appointed member shall be appointed for a term of 4 years. A
98vacancy on the board shall be filled by the appointing official
99for the member whose vacancy is to be filled or whose term has
100expired. An appointed member may be removed by the appointing
101official for that member, for cause. Absence from three
102consecutive meetings shall result in automatic removal. Any
103member is eligible for reappointment.
104 3. The chair of the Florida Seaport Transportation and
105Economic Development Council shall serve as an ex officio co-
106director of the board.
107 4. The Secretary of Transportation or his or her designee
108shall serve as an ex officio, nonvoting co-director of the
109board.
110 5. Members of the board shall serve without compensation,
111but may be reimbursed for all reasonable, necessary, and actual
112expenses as determined and approved by the board pursuant to s.
113112.061.
114 (5) INVESTMENTS BY THE CORPORATION IN PORT PROJECTS AND
115PORT-RELATED ACTIVITIES.-
116 (a)1. The corporation shall seek to maintain the state's
117advantage in ports and related industries. In order to maintain
118that advantage, the corporation shall fund freight mobility
119projects that improve throughput or provide long-term congestion
120relief for freight movement for a part of the state's
121transportation network and improve economic productivity for the
122state or the region in which projects are located. Freight
123mobility projects include on-port projects that meet the
124Department of Transportation's Strategic Intermodal System
125criteria and regionally significant freight projects that are
126eligible for federal financial assistance consistent with
127criteria developed for federal freight transportation grant
128programs, including, but not limited to, the Transportation
129Investment Generating Economic Recovery (TIGER), Projects of
130National and Regional Significance (PNRS), National
131Infrastructure Investment (NII), and the National Corridor
132Infrastructure Improvement (NCII) program.
133 2. The capital received under this section shall be
134allocated to eligible projects by July 1, 2012, or held in
135accordance with paragraph (b).
136 3. Funding for such projects shall be on a matching basis
137as determined by the corporation, except that at least 25
138percent of total project funds must come from port funds, local
139funds, private funds, or federal funds.
140 (b) The corporation shall hold all capital received under
141this section that is not invested in qualified port projects and
142such capital:
143 1. Must be held in a financial institution as defined by
144s. 655.005(1)(h) or held by a broker-dealer registered under s.
145517.12.
146 2. Must be invested only in:
147 a. United States Treasury obligations;
148 b. Certificates of deposit or other obligations, maturing
149within 3 years after acquisition of such certificates or
150obligations, issued by any financial institution or trust
151company incorporated under the laws of the United States;
152 c. Marketable obligations, maturing within 5 years or less
153after the acquisition of such obligations, which are rated "A"
154or better by any nationally recognized credit rating agency; or
155 d. Interests in money market funds, the portfolio of which
156is limited to cash and obligations described in sub-
157subparagraphs a.-c.
158 (c) All investment decisions shall be made by the
159corporation, which must certify that each project is of a
160beneficial nature to a port listed in s. 403.021(9)(b), is ready
161to proceed within 60 days for design, construction, and
162permitting, and will create a lasting economic impact as
163determined by the board. Applications for funding by qualified
164port projects must be made to the corporation. The board may
165establish procedural rules for the application form, application
166procedures, and criteria for making investment decisions based
167upon the requirements established in this paragraph.
168 (6) PREMIUM TAX CREDIT; AMOUNT; LIMITATIONS.-
169 (a) Any participating investor who makes an investment of
170investment capital shall earn a vested credit against premium
171tax liability equal to 100 percent of the face amount of the
172credits purchased by the participating investor and such
173investments may not be subject to recapture, disallowance,
174forfeiture, or reduction. Participating investors shall be
175entitled to use no more than 10 percentage points of the vested
176premium tax credit, including any carryforward credits under
177this section, per year beginning with premium tax filings for
178calendar year 2012. Any premium tax credits not used by
179participating investors in any single year may be carried
180forward and applied against the premium tax liabilities of such
181investors for subsequent calendar years. The carryforward credit
182may be applied against subsequent premium tax filings through
183calendar year 2029.
184 (b) The credit to be applied against premium tax liability
185in any single year may not exceed the premium tax liability of
186the participating investor for that taxable year.
187 (c) A participating investor claiming a credit against
188premium tax liability earned through an investment in the
189corporation is not required to pay any additional retaliatory
190tax levied pursuant to s. 624.5091 as a result of claiming such
191credit. Because credits under this section are available to a
192participating investor, s. 624.5091 does not limit such credit
193in any manner.
194 (7) ANNUAL TAX CREDIT; MAXIMUM AMOUNT.-
195 (a) The total amount of tax credits which may be allocated
196by the office may not exceed $100 million. The total amount of
197tax credits which may be used by participating investors under
198this section may not exceed $10 million annually.
199 (b) The office shall be responsible for allocating premium
200tax credits as provided for in this section to participating
201investors. A participating investor must submit an application
202to 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
205participating investor may elect to transfer, in whole or in
206part, any unused credit amount granted under this section. The
207office shall notify the Department of Revenue of the election
208and transfer.
209 (b) A participating investor that elects to apply a credit
210amount against taxes remitted under s. 624.509 is permitted a
211one-time transfer of unused credits to one transferee, and such
212transfer must occur in the same taxable year.
213 (c) The transferee is subject to the same rights and
214limitations as the participating investor awarded the tax
215credit, except that the transferee may not sell or otherwise
216transfer the tax credit.
217 (9) FEES.-The corporation may charge reasonable fees for
218administering and processing applications by qualified port
219projects for funding pursuant to paragraph (5)(c), and the
220office may charge reasonable fees for administering and
221processing applications by participating investors for tax
222credits pursuant to subsection (7). Any fee charged by the
223corporation or office under this subsection for an application
224may not exceed the actual cost incurred by the corporation or
225office in administering and processing any application for
226funding or a tax credit.
227 (10) REPORTING REQUIREMENTS.-The office shall report on an
228annual basis to the Governor, the President of the Senate, and
229the Speaker of the House of Representatives on or before
230February 1:
231 (a) The total dollar amount received by the corporation
232from all participating investors and any other investor, the
233identity of the participating investors, and the total amount of
234premium tax credit used by each participating investor for the
235previous calendar year.
236 (b) The total dollar amount invested by the corporation in
237qualified port projects, the identity and location of those
238projects, the amount invested in each qualified port project,
239and the total number of permanent, full-time jobs created or
240retained by each qualified port project.
241 (c) The return for the state as a result of the
242investments in qualified port projects, including the extent to
243which:
244 1. Investments have contributed to employment growth.
245 2. The wage level of businesses in which the corporation
246has invested exceeds the average wage for the county in which
247the jobs are located.
248 3. The investments of the corporation in qualified port
249projects have contributed to expanding or diversifying the
250economic base of the state.
251 (11) RULEMAKING AUTHORITY.-
252 (a) The Department of Revenue may adopt rules pursuant to
253ss. 120.536(1) and 120.54 to administer this section, including,
254but not limited to, rules governing the examination and audit
255procedures required to administer this section and the manner
256and form of documentation required to claim tax credits awarded
257or transferred under this section.
258 (b) The office may adopt rules pursuant to ss. 120.536(1)
259and 120.54 and develop procedures to administer this section,
260including, but not limited to, rules specifying requirements for
261the application and approval process, records required for
262substantiation for tax credits, and the manner and form of
263documentation required to claim tax credits awarded or
264transferred under this section.
265 Section 2. Paragraph (z) is added to subsection (8) of
266section 213.053, Florida Statutes, to read:
267 213.053 Confidentiality and information sharing.-
268 (8) Notwithstanding any other provision of this section,
269the department may provide:
270 (z) Information relating to tax credits taken under s.
271624.509 to the Office of Tourism, Trade, and Economic
272Development.
273
274Disclosure of information under this subsection shall be
275pursuant to a written agreement between the executive director
276and the agency. Such agencies, governmental or nongovernmental,
277shall be bound by the same requirements of confidentiality as
278the Department of Revenue. Breach of confidentiality is a
279misdemeanor of the first degree, punishable as provided by s.
280775.082 or s. 775.083.
281 Section 3. This act shall take effect July 1, 2010.
CODING: Words stricken are deletions; words underlined are additions.
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