Bill Text: FL S1424 | 2019 | Regular Session | Introduced


Bill Title: Small Business Microfinancing

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-05 - Introduced [S1424 Detail]

Download: Florida-2019-S1424-Introduced.html
       Florida Senate - 2019                                    SB 1424
       
       
        
       By Senator Powell
       
       
       
       
       
       30-01872-19                                           20191424__
    1                        A bill to be entitled                      
    2         An act relating to small business microfinancing;
    3         amending s. 287.0947, F.S.; renaming the Florida
    4         Advisory Council on Small and Minority Business
    5         Development; requiring the council to administer the
    6         Florida Microfinancing Tax Credit Program; conforming
    7         a provision to changes made by the act; creating s.
    8         287.09475, F.S.; establishing the Florida
    9         Microfinancing Tax Credit Program; providing
   10         legislative findings and intent; providing
   11         definitions; providing eligibility requirements for
   12         participation in the program; establishing a tax
   13         credit cap amount; authorizing an increase of such
   14         amount under certain circumstances; specifying
   15         procedures and requirements for applying for, carrying
   16         forward, conveying, assigning, transferring, and
   17         rescinding the tax credit; specifying procedures for
   18         calculating certain tax underpayments and determining
   19         certain penalties and interest; specifying obligations
   20         of eligible microfinancing organizations for program
   21         participation; authorizing a certain percentage of
   22         eligible contributions to be collected for
   23         administrative expenses; specifying how net
   24         contributions are to be handled; authorizing an
   25         eligible microfinancing organization to transfer funds
   26         under specified circumstances; providing for
   27         confidentiality of certain information and
   28         documentation; specifying responsibilities of an
   29         eligible person to participate in the program;
   30         specifying council obligations as part of the program;
   31         requiring an annual report to the Department of
   32         Management Services providing program parameters;
   33         requiring quarterly reports by an eligible
   34         microfinancing organization; specifying authorized
   35         microfinancing amounts; requiring an eligible person
   36         to verify specified information regarding opening or
   37         expanding a small business to the eligible
   38         microfinancing organization; requiring eligible
   39         contributions received by an eligible microfinancing
   40         organization to be deposited in a specific manner;
   41         providing that credit earned remains unaffected if any
   42         other tax credit is declared unconstitutional or is
   43         invalid; specifying the application requirements for
   44         microfinancing organizations to participate in the
   45         program; specifying the disposition of remaining funds
   46         held by a microfinancing organization that is
   47         disapproved for participation in the program;
   48         providing renewal criteria; requiring the Department
   49         of Revenue, the Department of Management Services, and
   50         the council to develop a cooperative agreement to
   51         administer the program; authorizing the Department of
   52         Revenue and the Department of Management Services with
   53         input from the council to adopt certain rules;
   54         creating s. 211.0255, F.S.; providing for a credit
   55         against the oil and gas production tax for program
   56         contributions for certain eligible microfinancing
   57         organizations; requiring the Department of Revenue to
   58         disregard certain tax credits for certain purposes;
   59         creating s. 212.1835, F.S.; providing for a credit
   60         against the sales and use tax for certain eligible
   61         microfinancing organizations; requiring the Department
   62         of Revenue to disregard certain tax credits for
   63         certain purposes; amending s. 220.13, F.S.; revising
   64         the determination of additions to adjusted federal
   65         income for certain eligible microfinancing
   66         organizations; providing for construction of certain
   67         provisions; creating s. 220.1877, F.S.; providing for
   68         a credit against the corporate income tax for certain
   69         eligible microfinancing organizations; providing
   70         limitations; providing for adjustments; creating s.
   71         561.1215, F.S.; providing for a credit against certain
   72         alcoholic beverage taxes for certain eligible
   73         microfinancing organizations; requiring the Division
   74         of Alcoholic Beverages and Tobacco of the Department
   75         of Business and Professional Regulation to disregard
   76         certain tax credits for certain purposes; creating s.
   77         624.51057, F.S.; providing for credits against the
   78         insurance premium tax for contributions to certain
   79         eligible microfinancing organizations; authorizing the
   80         Department of Revenue to adopt emergency rules;
   81         providing applicability; providing an effective date.
   82          
   83  Be It Enacted by the Legislature of the State of Florida:
   84  
   85         Section 1. Section 287.0947, Florida Statutes, is amended
   86  to read:
   87         287.0947 Florida Advisory Council on Small and Minority
   88  Business Development; creation; membership; duties.—
   89         (1) There is created within the Department of Secretary of
   90  Management Services may create the Florida Advisory Council on
   91  Small and Minority Business Development with the purpose of
   92  advising and assisting the secretary in carrying out the
   93  secretary’s duties with respect to minority businesses and
   94  economic and business development and administering the Florida
   95  Microfinancing Tax Credit Program as created in s. 287.09475. It
   96  is the intent of the Legislature that the membership of such
   97  council include practitioners, laypersons, financiers, and
   98  others with business development experience who can provide
   99  invaluable insight and expertise for this state in the
  100  diversification of its markets and networking of business
  101  opportunities. The council shall initially consist of 19
  102  persons, each of whom is or has been actively engaged in small
  103  and minority business development, either in private industry,
  104  in governmental service, or as a scholar of recognized
  105  achievement in the study of such matters. Initially, the council
  106  shall consist of members representing all regions of the state
  107  and shall include at least one member from each group identified
  108  within the definition of “minority person” in s. 288.703(4),
  109  considering also gender and nationality subgroups, and shall
  110  consist of the following:
  111         (a) Four members consisting of representatives of local and
  112  federal small and minority business assistance programs or
  113  community development programs.
  114         (b) Eight members composed of representatives of the
  115  minority private business sector, including certified minority
  116  business enterprises and minority supplier development councils,
  117  among whom at least two shall be women and at least four shall
  118  be minority persons.
  119         (c) Two representatives of local government, one of whom
  120  shall be a representative of a large local government, and one
  121  of whom shall be a representative of a small local government.
  122         (d) Two representatives from the banking and insurance
  123  industry.
  124         (e) Two members from the private business sector,
  125  representing the construction and commodities industries.
  126         (f) A member from the board of directors of Enterprise
  127  Florida, Inc.
  128  
  129  A candidate for appointment may be considered if eligible to be
  130  certified as an owner of a minority business enterprise, or if
  131  otherwise qualified under the criteria above. Vacancies may be
  132  filled by appointment of the secretary, in the manner of the
  133  original appointment.
  134         (2) Each appointed member shall serve for a term of 2 years
  135  from the date of appointment, except that a vacancy shall be
  136  filled by appointment for the remainder of the unexpired term.
  137  The council shall annually elect a chair and a vice chair. The
  138  council shall adopt internal procedures or bylaws necessary for
  139  efficient operations. Members of the council shall serve without
  140  compensation or honorarium but shall be entitled to per diem and
  141  travel expenses pursuant to s. 112.061 for the performance of
  142  duties for the council. The executive administrator of the
  143  commission may remove a council member for cause.
  144         (3) Within 30 days after its initial meeting, the council
  145  shall elect from among its members a chair and a vice chair.
  146         (4) The council shall meet at the call of its chair, at the
  147  request of a majority of its membership, at the request of the
  148  commission or its executive administrator, or at such times as
  149  may be prescribed by rule, but not less than once a year, to
  150  offer its views on issues related to small and minority business
  151  development of concern to this state. A majority of the members
  152  of the council shall constitute a quorum.
  153         (5) The powers and duties of the council include, but are
  154  not limited to: researching and reviewing the role of small and
  155  minority businesses in the state’s economy; reviewing issues and
  156  emerging topics relating to small and minority business economic
  157  development; studying the ability of financial markets and
  158  institutions to meet small business credit needs and determining
  159  the impact of government demands on credit for small businesses;
  160  assessing the implementation of s. 187.201(21), requiring a
  161  state economic development comprehensive plan, as it relates to
  162  small and minority businesses; assessing the reasonableness and
  163  effectiveness of efforts by any state agency or by all state
  164  agencies collectively to assist minority business enterprises;
  165  and advising the Governor, the secretary, and the Legislature on
  166  matters relating to small and minority business development
  167  which are of importance to the international strategic planning
  168  and activities of this state.
  169         (6) In addition to its other duties, the council shall
  170  administer the Florida Microfinancing Tax Credit Program
  171  established under s. 287.09475.
  172         (7) On or before March January 1 of each year, the council
  173  shall present an annual report to the secretary that sets forth
  174  in appropriate detail the business transacted by the council
  175  during the year and any recommendations to the secretary,
  176  including those to improve business opportunities for small and
  177  minority business enterprises. The report shall include the
  178  information set forth in s. 287.09475(7)(c).
  179         Section 2. Section 287.09475, Florida Statutes, is created
  180  to read:
  181         287.09475Florida Microfinancing Tax Credit Program.—
  182         (1)FINDINGS AND PURPOSE.—
  183         (a)The Legislature finds that:
  184         1.The Legislature has the inherent power to determine
  185  subjects of taxation for general or particular public purposes.
  186         2.Expanding economic opportunities and improving the
  187  ability of minority persons to access capital for the purpose of
  188  opening or expanding small businesses within this state are
  189  valid public purposes that the Legislature may promote using its
  190  sovereign power to determine subjects of taxation and exemptions
  191  from taxation.
  192         3.Expanding economic opportunities to persons who have had
  193  little access to traditional forms of loans and the creation of
  194  a healthy environment through competition in the marketplace are
  195  critical to improving the business environment in this state and
  196  to ensuring that all small minority-owned business enterprises
  197  have the same opportunity to access capital as larger businesses
  198  and to which they are entitled.
  199         (b)The purpose of this section is to:
  200         1.Enable taxpayers to make private, voluntary
  201  contributions to the Microfinancing Tax Credit Program in order
  202  to promote the general welfare.
  203         2.Provide taxpayers who wish to help minority persons with
  204  limited financial resources and an inability to access
  205  traditional sources of loans, to exercise their basic right to
  206  obtain capital and funding in order to open or expand small
  207  businesses.
  208         3.Improve the job opportunities in this state by expanding
  209  the opportunity of minority persons to open or expand small
  210  businesses and hire employees.
  211         (2)DEFINITIONS.—As used in this section, the term:
  212         (a)“Annual tax credit amount” means, for any state fiscal
  213  year, the sum of the amount of tax credits approved under
  214  paragraph (4)(b), which are approved for a taxpayer whose
  215  taxable year begins on or after January 1 of the calendar year
  216  preceding the start of the applicable state fiscal year.
  217         (b)“Council” means the Florida Council on Small and
  218  Minority Business Development.
  219         (c)“Department” means the Department of Revenue.
  220         (d)“Direct certification list” means the certified list of
  221  minority persons who desire to open or expand a small business
  222  but who have documented an inability to access traditional
  223  sources of funding through banks or other financial institutions
  224  and have been denied repeated attempts in obtaining traditional
  225  sources of funding.
  226         (e)“Eligible contribution” means a monetary contribution
  227  from a taxpayer, subject to the restrictions provided in this
  228  section, to an eligible microfinancing organization.
  229         (f)“Eligible microfinancing organization” means a
  230  charitable organization that:
  231         1.Is exempt from federal income tax pursuant to s.
  232  501(c)(3) of the Internal Revenue Code.
  233         2.Is a Florida entity formed under chapter 605, chapter
  234  607, or chapter 617 and whose principal office is located in
  235  this state.
  236         3.Complies with subsections (5) and (11).
  237         (g)“Eligible person” means a minority person who meets the
  238  requirements in subsection (6).
  239         (h)“Minority person” means a minority person as defined in
  240  s. 288.703.
  241         (i)“Owner or operator” means an owner, president, officer,
  242  or director of an eligible microfinancing organization or a
  243  person with equivalent decisionmaking authority over an eligible
  244  microfinancing organization.
  245         (j)“Small business” means a small business as defined in
  246  s. 288.703 which is owned and operated by a minority person.
  247         (k)“Tax credit cap amount” means the maximum annual tax
  248  credit amount that the department may approve for a state fiscal
  249  year.
  250         (3)PROGRAM ESTABLISHMENT; ELIGIBILITY OF MINORITY
  251  PERSONS.—
  252         (a)The Florida Microfinancing Tax Credit Program is
  253  established.
  254         (b)A minority person is eligible for microfinancing under
  255  this section if the minority person desires to open or expand a
  256  small business and meets the criteria set forth by the council.
  257  A minority person who initially receives financing based on
  258  eligibility as determined by the council and later is able to
  259  acquire financing at an interest rate determined reasonable by
  260  the council must repay the financed amount and obtain
  261  traditional financing.
  262         (4)MICROFINANCING FUNDING TAX CREDITS; LIMITATIONS.—
  263         (a)1.The tax credit cap amount is $XX million in the 2019
  264  2020 state fiscal year.
  265         2.In the 2020-2021 state fiscal year and each state fiscal
  266  year thereafter, the tax credit cap amount is the tax credit cap
  267  amount in the prior state fiscal year. However, in any state
  268  fiscal year when the annual tax credit amount for the prior
  269  state fiscal year is equal to or greater than 90 percent of the
  270  tax credit cap amount applicable to that state fiscal year, the
  271  tax credit cap amount shall increase by 25 percent. The
  272  Secretary of Management Services and the department shall
  273  publish on their websites information identifying the tax credit
  274  cap amount when it is increased.
  275         (b)A taxpayer may submit an application to the department
  276  for a tax credit or credits under one or more of s. 211.0255, s.
  277  212.1835, s. 220.1877, s. 561.1215, or s. 624.51057.
  278         1.The taxpayer shall specify in the application each tax
  279  for which the taxpayer requests a credit and the applicable
  280  taxable year for a credit under s. 220.1877 or s. 624.51057 or
  281  the applicable state fiscal year for a credit under s. 211.0255,
  282  s. 212.1835, or s. 561.1215. For purposes of s. 220.1877, a
  283  taxpayer may apply for a credit to be used for a prior taxable
  284  year before the date the taxpayer is required to file a return
  285  for that year pursuant to s. 220.222. The department shall
  286  approve tax credits on a first-come, first-served basis.
  287         2.Within 10 days after approving or denying an
  288  application, the department shall provide a copy of its approval
  289  or denial letter to the eligible microfinancing organization
  290  specified by the taxpayer in the application.
  291         (c)If a tax credit approved under paragraph (b) is not
  292  fully used within the specified state fiscal year for credits
  293  under s. 211.0255, s. 212.1835, or s. 561.1215 or against taxes
  294  due for the specified taxable year for credits under s. 220.1877
  295  or s. 624.51057 because of insufficient tax liability on the
  296  part of the taxpayer, the unused amount shall be carried forward
  297  for a period not to exceed 10 years. For purposes of s.
  298  220.1877, a credit carried forward may be used in a subsequent
  299  year after applying the other credits and unused carryovers in
  300  the order provided in s. 220.02(8).
  301         (d)A taxpayer may not convey, assign, or transfer an
  302  approved tax credit or a carryforward tax credit to another
  303  entity unless all of the assets of the taxpayer are conveyed,
  304  assigned, or transferred in the same transaction. However, a tax
  305  credit under s. 211.0255, s. 212.1835, s. 220.1877, s. 561.1215,
  306  or s. 624.51057 may be conveyed, transferred, or assigned
  307  between members of an affiliated group of corporations if the
  308  type of tax credit under s. 211.0255, s. 212.1835, s. 220.1877,
  309  s. 561.1215, or s. 624.51057 remains the same. A taxpayer shall
  310  notify the department of its intent to convey, transfer, or
  311  assign a tax credit to another member within an affiliated group
  312  of corporations. The amount conveyed, transferred, or assigned
  313  is available to another member of the affiliated group of
  314  corporations upon approval by the department.
  315         (e)Within any state fiscal year, a taxpayer may rescind
  316  all or part of a tax credit approved under paragraph (b). The
  317  amount rescinded shall become available for that state fiscal
  318  year to another eligible taxpayer as approved by the department
  319  if the taxpayer receives notice from the department that the
  320  rescindment has been accepted by the department. Any amount
  321  rescinded under this paragraph shall become available to an
  322  eligible taxpayer on a first-come, first-served basis based on
  323  tax credit applications received after the date the rescindment
  324  is accepted by the department.
  325         (f)Within 10 days after approving or denying the
  326  conveyance, transfer, or assignment of a tax credit under
  327  paragraph (d), or the rescindment of a tax credit under
  328  paragraph (e), the department shall provide a copy of its
  329  approval or denial letter to the eligible person specified by
  330  the taxpayer. The department shall also include the eligible
  331  person specified by the taxpayer on all letters or
  332  correspondence of acknowledgment for tax credits under s.
  333  212.1835.
  334         (g)For purposes of calculating the underpayment of
  335  estimated corporate income taxes pursuant to s. 220.34 and tax
  336  installment payments for taxes on insurance premiums or
  337  assessments under s. 624.5092, the final amount due is the
  338  amount after credits earned under s. 220.1877 or s. 624.51057
  339  for contributions to eligible persons are deducted.
  340         1.For purposes of determining if a penalty or interest
  341  shall be imposed for underpayment of estimated corporate income
  342  tax pursuant to s. 220.34(2)(d)1., a taxpayer may, after earning
  343  a credit under s. 220.1877, reduce the estimated payment in that
  344  taxable year by the amount of the credit.
  345         2.For purposes of determining if a penalty under s.
  346  624.5092 shall be imposed, an insurer may, after earning a
  347  credit under s. 624.51057, reduce the following installment
  348  payment of 27 percent of the amount of the net tax due as
  349  reported on the return for the preceding year under s.
  350  624.5092(2)(b) by the amount of the credit. This subparagraph
  351  applies to contributions made on or after July 1, 2020.
  352         (5)OBLIGATIONS OF ELIGIBLE MICROFINANCING ORGANIZATIONS.
  353  An eligible microfinancing organization:
  354         (a)Must comply with the following background check
  355  requirements:
  356         1.The owner or operator, before employing others or
  357  engaging to provide services, is subject to level 2 background
  358  screening as provided under chapter 435. The fingerprints for
  359  the background screening must be electronically submitted to the
  360  Department of Law Enforcement and can be taken by an authorized
  361  law enforcement agency or by an employee of the eligible
  362  microfinancing organization or a private company who is trained
  363  to take fingerprints. The results of the state and national
  364  criminal history check shall be provided to the Department of
  365  Management Services for screening under chapter 435.
  366         2.Fingerprints submitted to the Department of Law
  367  Enforcement as required by this paragraph must be retained by
  368  the Department of Law Enforcement in a manner approved by rule
  369  and entered in the statewide automated biometric identification
  370  system authorized by s. 943.05(2)(b). The fingerprints must
  371  thereafter be available for all purposes and uses authorized for
  372  arrest fingerprints entered in the statewide automated biometric
  373  identification system pursuant to s. 943.051.
  374         3.The Department of Law Enforcement shall search all
  375  arrest fingerprints received under s. 943.051 against the
  376  fingerprints retained in the statewide automated biometric
  377  identification system under subparagraph 2. Any arrest record
  378  that is identified with an owner’s or operator’s fingerprints
  379  must be reported to the Department of Management Services. The
  380  Department of Management Services shall participate in this
  381  search process by paying an annual fee to the Department of Law
  382  Enforcement and by informing the Department of Law Enforcement
  383  of any change in the employment, engagement, or association
  384  status of the owners or operators whose fingerprints are
  385  retained under subparagraph 2. The Department of Law Enforcement
  386  shall adopt a rule setting the amount of the annual fee to be
  387  imposed upon the Department of Management Services for
  388  performing these services and establishing the procedures for
  389  the retention of owner and operator fingerprints and the
  390  dissemination of search results. The fee may be borne by the
  391  owner or operator.
  392         4.An eligible microfinancing organization whose owner or
  393  operator fails the level 2 background screening is not eligible
  394  to provide small business financing to an eligible person under
  395  this section.
  396         5.An eligible microfinancing organization whose owner or
  397  operator in the last 7 years has filed for personal bankruptcy
  398  or corporate bankruptcy in a corporation of which he or she
  399  owned more than 20 percent shall not be eligible to provide
  400  small business financing under this section.
  401         6.In addition to the offenses listed in s. 435.04, an
  402  owner or operator who is required to undergo background
  403  screening pursuant to this part or authorizing statutes must not
  404  have an arrest awaiting final disposition for, must not have
  405  been found guilty of, or entered a plea of nolo contendere to,
  406  regardless of adjudication, and must not have been adjudicated
  407  delinquent, and the record must not have been sealed or expunged
  408  for, any of the following offenses or any similar offense of
  409  another jurisdiction:
  410         a.Any authorizing statutes, if the offense was a felony.
  411         b.This chapter, if the offense was a felony.
  412         c.Section 817.034, relating to fraudulent acts through
  413  mail, wire, radio, electromagnetic, photoelectronic, or
  414  photooptical systems.
  415         d.Section 817.234, relating to false and fraudulent
  416  insurance claims.
  417         e.Section 817.568, relating to criminal use of personal
  418  identification information.
  419         f.Section 817.60, relating to obtaining a credit card
  420  through fraudulent means.
  421         g.Section 817.61, relating to fraudulent use of credit
  422  cards, if the offense was a felony.
  423         h.Section 831.01, relating to forgery.
  424         i.Section 831.02, relating to uttering forged instruments.
  425         j.Section 831.07, relating to forging bank bills, checks,
  426  drafts, or promissory notes.
  427         k.Section 831.09, relating to uttering forged bank bills,
  428  checks, drafts, or promissory notes.
  429         l.Section 831.30, relating to fraud in obtaining medicinal
  430  drugs.
  431         m.Section 831.31, relating to the sale, manufacture,
  432  delivery, or possession with the intent to sell, manufacture, or
  433  deliver any counterfeit controlled substance, if the offense was
  434  a felony.
  435         (b)Must provide small business financing from eligible
  436  contributions to eligible persons for opening or expanding a
  437  small business.
  438         (c)Must provide microfinancing to an eligible person to
  439  open or expand a small business on a first-come, first-served
  440  basis.
  441         (d)May not restrict or reserve small business financing to
  442  particular areas of this state or provide small business
  443  financing to a close relative, as that term is defined in s.
  444  381.986, of an owner or operator.
  445         (e)1.May use up to 3 percent of eligible contributions
  446  received during the year in which such contributions are
  447  collected for administrative expenses if the organization has
  448  operated as an eligible microfinancing organization for at least
  449  the preceding 3 fiscal years and did not have any findings of
  450  material weakness or material noncompliance in its most recent
  451  audit. Such administrative expenses must be reasonable and
  452  necessary for the organization’s management and distribution of
  453  eligible contributions under this section. Funds authorized
  454  under this subparagraph may not be used for lobbying or
  455  political activity or expenses related to lobbying or political
  456  activity. Up to one-third of the funds authorized for
  457  administrative expenses under this subparagraph may be used for
  458  expenses related to the recruitment of contributions from
  459  taxpayers. An eligible microfinancing organization may not
  460  charge an application fee.
  461         2.Must expend for annual or partial-year small business
  462  financing an amount equal to or greater than 75 percent of the
  463  net eligible contributions remaining after administrative
  464  expenses during the state fiscal year in which such
  465  contributions are collected. No more than 25 percent of such net
  466  eligible contributions may be carried forward to the following
  467  state fiscal year. Any amounts carried forward shall be expended
  468  for annual or partial-year small business financing in the
  469  following state fiscal year. Net eligible contributions
  470  remaining on June 30 of each year that are in excess of the 25
  471  percent that may be carried forward shall be transferred to
  472  other eligible microfinancing organizations to provide small
  473  business financing for eligible persons. All transferred funds
  474  must be deposited by each eligible microfinancing organization
  475  receiving such funds into its microfinancing account. All
  476  transferred amounts received by any eligible microfinancing
  477  organization must be separately disclosed in the annual
  478  financial audit required under paragraph (g).
  479         3.Must annually document the inability of the recipient of
  480  microfinancing to refinance the outstanding loan amount provided
  481  by the microfinancing organization through the financing with
  482  traditional banks or financial institutions.
  483         (f)With the prior approval of the Department of Management
  484  Services, may transfer funds to another eligible microfinancing
  485  organization if additional funds are required to meet
  486  microfinancing demand at the receiving microfinancing
  487  organization. A transfer is limited to the greater of $10,000 or
  488  20 percent of the total contributions received by the
  489  microfinancing organization making the transfer. All transferred
  490  funds must be deposited by the receiving microfinancing
  491  organization into its microfinancing accounts. All transferred
  492  amounts received by any microfinancing organization must be
  493  separately disclosed in the annual financial and compliance
  494  audit required in this section.
  495         (g)Must provide to the Auditor General and the Department
  496  of Management Services a report on the results of an annual
  497  financial audit of its accounts and records conducted by an
  498  independent certified public accountant in accordance with
  499  auditing standards generally accepted in the United States,
  500  government auditing standards, and rules promulgated by the
  501  Auditor General. The audit report must include a report on
  502  financial statements presented in accordance with generally
  503  accepted accounting principles. Audit reports must be provided
  504  to the Auditor General and the Department of Management Services
  505  by June 1. The Auditor General shall review all audit reports
  506  submitted pursuant to this paragraph. The Auditor General shall
  507  request any significant items that were omitted in violation of
  508  a rule adopted by the Auditor General. The items must be
  509  provided within 45 days after the date of the request. If the
  510  microfinancing funding organization does not comply with the
  511  Auditor General’s request, the Auditor General shall notify the
  512  Legislative Auditing Committee.
  513         (h)Must prepare and submit quarterly reports to the
  514  Department of Management Services pursuant to paragraph (7)(g).
  515  In addition, the council must submit in a timely manner any
  516  information requested by the Department of Management Services
  517  relating to the microfinancing program.
  518         (i)Must provide to the Auditor General any information or
  519  documentation requested in connection with an operational audit
  520  of a microfinancing funding organization conducted pursuant to
  521  s. 11.45.
  522  
  523  Information and documentation provided to the Department of
  524  Management Services and the Auditor General relating to the
  525  identity of a taxpayer who provides an eligible contribution
  526  under this section shall remain confidential at all times in
  527  accordance with s. 213.053.
  528         (6)ELIGIBLE PERSON RESPONSIBILITIES FOR MICROFINANCING
  529  PROGRAM PARTICIPATION.—
  530         (a)The eligible person must provide written documentation
  531  including the information specified by the council concerning
  532  the small business which an eligible person will open or expand.
  533  At a minimum, the documentation must provide the eligible
  534  person’s financial plan for the new or expanded small business
  535  that demonstrates sufficient funds, after microfinancing, will
  536  exist to operate throughout the year.
  537         (b)The eligible person must inform the council and the
  538  eligible microfinancing organization which provided financing to
  539  the eligible person if the person will not open, or will close
  540  or contract, the size of the small business.
  541         (7)COUNCIL OBLIGATIONS.—The council shall:
  542         (a)Annually submit to the department, by March 1, a list
  543  of eligible microfinancing organizations that meet the
  544  requirements of paragraph (2)(f).
  545         (b) Establish a process to certify eligible persons and
  546  maintain a direct certification list accessible by eligible
  547  microfinancing organizations.
  548         (c)Annually, by March 1, submit to the Department of
  549  Management Services, a report that includes:
  550         1.The number of eligible persons who completed
  551  applications, by county.
  552         2.The number of eligible persons who were approved for
  553  small business financing, by county.
  554         3.The number of eligible persons who received funding for
  555  small business financing, based on information provided by each
  556  eligible microfinancing organization.
  557         4.The amount of funds received, the amount of funds
  558  distributed in small business financing, and an accounting of
  559  remaining funds and the obligation of those funds.
  560         5.A detailed accounting of how each eligible organization
  561  spent the administrative funds allowable under paragraph (5)(e).
  562         (d)Annually verify the eligibility of expenditures for
  563  eligible persons using the audit required by paragraph (5)(g).
  564         (e)Notify an eligible microfinancing organization of any
  565  of the organization’s identified eligible persons who are
  566  receiving small business microfinancing through traditional
  567  banks or financial institutions.
  568         (f)Notify an eligible microfinancing organization of any
  569  of the organization’s identified eligible persons who are
  570  receiving small business microfinancing from other eligible
  571  microfinancing organizations.
  572         (g)Require quarterly reports by an eligible microfinancing
  573  organization regarding the number of eligible persons
  574  participating in the small business microfinancing program, the
  575  locations of the small businesses, and other information deemed
  576  necessary by the Department of Management Services.
  577         (8)MICROFINANCING AMOUNT AND PAYMENT.—
  578         (a)The microfinancing amount provided to any eligible
  579  person by an eligible microfinancing organization shall be for
  580  any amounts as determined by the microfinancing organization but
  581  in any event, not less than $500 or more than $5,000.
  582         (b)An eligible microfinancing organization shall obtain
  583  verification from the eligible person of his or her opening or
  584  expanding a small business within the date specified in
  585  documents provided to the council and the continued viability of
  586  the small business, for each period covered by a microfinancing
  587  payment.
  588         (9)DEPOSITS OF ELIGIBLE CONTRIBUTIONS.—All eligible
  589  contributions received by an eligible microfinancing
  590  organization shall be deposited in a manner consistent with s.
  591  17.57(2).
  592         (10)PRESERVATION OF CREDIT.—If any provision or portion of
  593  this section, s. 211.0255, s. 212.1835, s. 220.1877, s.
  594  561.1215, or s. 624.51057 or the application thereof to any
  595  person or circumstance is held unconstitutional by any court or
  596  is otherwise declared invalid, the unconstitutionality or
  597  invalidity shall not affect any credit earned under s. 211.0255,
  598  s. 212.1835, s. 220.1877, s. 561.1215, or s. 624.51057 by any
  599  taxpayer with respect to any contribution paid to an eligible
  600  microfinancing organization before the date of a determination
  601  of unconstitutionality or invalidity. Such credit shall be
  602  allowed at such time and in such a manner as if a determination
  603  of unconstitutionality or invalidity had not been made, provided
  604  that nothing in this subsection by itself or in combination with
  605  any other provision of law shall result in the allowance of any
  606  credit to any taxpayer in excess of 1 dollar of credit for each
  607  dollar paid to an eligible microfinancing organization.
  608         (11)MICROFINANCING ORGANIZATIONS; APPLICATION.—In order to
  609  participate in the microfinancing program created under this
  610  section, a charitable organization that seeks to be a
  611  microfinancing organization must submit an application for
  612  initial approval or renewal to the council no later than
  613  September 1 of each year in which the organization intends to
  614  offer small business financing.
  615         (a)An application for initial approval must include:
  616         1.A copy of the organization’s incorporation documents and
  617  registration with the Division of Corporations of the Department
  618  of State.
  619         2.A copy of the organization’s Internal Revenue Service
  620  determination letter as a s. 501(c)(3) not-for-profit
  621  organization.
  622         3.A description of the organization’s financial plan that
  623  demonstrates sufficient funds to operate throughout the year.
  624         4.A description of the geographic region that the
  625  organization intends to serve and an analysis of the demand and
  626  unmet need for eligible persons in that area.
  627         5.The organization’s organizational chart.
  628         6.A description of the criteria and methodology that the
  629  organization will use to determine microfinancing amounts for
  630  each eligible person who will receive financing by the
  631  organization.
  632         7.A description of the application process, including
  633  deadlines and any associated fees.
  634         8.A description of the deadlines for microfinancing
  635  payments.
  636         9.The organization’s completed Internal Revenue Service
  637  Form 990 submitted no later than November 30 of the year before
  638  the year that the organization intends to offer the small
  639  business financing.
  640         10. A copy of the organization’s statutorily required audit
  641  to the Department of Management Services and the Auditor
  642  General.
  643         (b)In consultation with the Department of Management
  644  Services, the council shall review the application. The council
  645  shall notify the organization in writing of any deficiencies
  646  within 30 days after receipt of an application and allow the
  647  organization 30 days to correct any deficiencies.
  648         (c)Within 30 days after receipt of the finalized
  649  application, the council must either approve or disapprove the
  650  application. If the council disapproves the organization’s
  651  application, it shall provide the organization with a written
  652  explanation of that determination. The council’s action is not
  653  subject to chapter 120.
  654         (d)All remaining funds held by a microfinancing
  655  organization that is disapproved for participation must be
  656  transferred to other eligible microfinancing organizations to
  657  provide small business financing for eligible persons. All
  658  transferred funds must be deposited by each eligible
  659  microfinancing organization receiving such funds into its
  660  microfinancing account. All transferred amounts received by any
  661  eligible microfinancing organization must be separately
  662  disclosed in the annual financial audit required under paragraph
  663  (5)(g).
  664         (e)A microfinancing organization is a renewing
  665  organization if it maintains continuous approval and
  666  participation in the program. An organization that chooses not
  667  to participate for 1 year or more or is disapproved to
  668  participate for 1 year or more must submit an application for
  669  initial approval in order to participate in the program again.
  670         (12)ADMINISTRATION; RULES.—
  671         (a)The department, the Department of Management Services,
  672  and the council shall develop a cooperative agreement to assist
  673  in the administration of this section.
  674         (b)The department shall adopt rules necessary to
  675  administer this section and ss. 211.0255, 212.1835, 220.1877,
  676  561.1215, and 624.51057, including rules establishing
  677  application forms, procedures governing the approval of tax
  678  credits and carryforward tax credits under subsection (4), and
  679  procedures to be followed by taxpayers when claiming approved
  680  tax credits on their returns.
  681         (c)The Department of Management Services, in coordination
  682  with the council, shall adopt rules to administer the
  683  responsibilities of the Department of Management Services and
  684  the council under this section. The rules shall provide
  685  guidelines for receiving, reviewing, and approving applications
  686  for new and renewing microfinancing organizations. The rules
  687  must include a process for compiling input and recommendations
  688  from the Department of Revenue and the Department of Management
  689  Services. The rules must require that the microfinancing
  690  organization make a brief presentation to assist the council in
  691  its decision.
  692         Section 3. Section 211.0255, Florida Statutes, is created
  693  to read:
  694         211.0255Credit for contributions to eligible
  695  microfinancing organizations.—There is allowed a credit of 100
  696  percent of an eligible contribution made to an eligible
  697  microfinancing organization under s. 287.09475 against any tax
  698  due under s. 211.02 or s. 211.025. However, a credit allowed
  699  under this section may not exceed 50 percent of the tax due on
  700  the return the credit is taken. For purposes of the
  701  distributions of tax revenue under s. 211.06, the department
  702  shall disregard any tax credits allowed under this section to
  703  ensure that any reduction in tax revenue received which is
  704  attributable to the tax credits results only in a reduction in
  705  distributions to the General Revenue Fund. The provisions of s.
  706  287.09475 apply to the credit authorized by this section.
  707         Section 4. Section 212.1835, Florida Statutes, is created
  708  to read:
  709         212.1835Credit for contributions to eligible
  710  microfinancing organizations.—There is allowed a credit of 100
  711  percent of an eligible contribution made to an eligible
  712  microfinancing organization under s. 287.09475 against any tax
  713  imposed by the state and due under this chapter from a direct
  714  pay permitholder as a result of the direct pay permit held
  715  pursuant to s. 212.183. For purposes of the dealer’s credit
  716  granted for keeping prescribed records, filing timely tax
  717  returns, and properly accounting and remitting taxes under s.
  718  212.12, the amount of tax due used to calculate the credit shall
  719  include any eligible contribution made to an eligible
  720  microfinancing organization from a direct pay permitholder. For
  721  purposes of the distributions of tax revenue under s. 212.20,
  722  the department shall disregard any tax credits allowed under
  723  this section to ensure that any reduction in tax revenue
  724  received that is attributable to the tax credits results only in
  725  a reduction in distributions to the General Revenue Fund. The
  726  provisions of s. 287.09475 apply to the credit authorized by
  727  this section.
  728         Section 5. Paragraph (a) of subsection (1) of section
  729  220.13, Florida Statutes, is amended to read:
  730         220.13 “Adjusted federal income” defined.—
  731         (1) The term “adjusted federal income” means an amount
  732  equal to the taxpayer’s taxable income as defined in subsection
  733  (2), or such taxable income of more than one taxpayer as
  734  provided in s. 220.131, for the taxable year, adjusted as
  735  follows:
  736         (a) Additions.—There shall be added to such taxable income:
  737         1.a. The amount of any tax upon or measured by income,
  738  excluding taxes based on gross receipts or revenues, paid or
  739  accrued as a liability to the District of Columbia or any state
  740  of the United States which is deductible from gross income in
  741  the computation of taxable income for the taxable year.
  742         b. Notwithstanding sub-subparagraph a., if a credit taken
  743  under s. 220.1875 or s. 220.1877 is added to taxable income in a
  744  previous taxable year under subparagraph 11. and is taken as a
  745  deduction for federal tax purposes in the current taxable year,
  746  the amount of the deduction allowed shall not be added to
  747  taxable income in the current year. The exception in this sub
  748  subparagraph is intended to ensure that the credit under s.
  749  220.1875 or s. 220.1877 is added in the applicable taxable year
  750  and does not result in a duplicate addition in a subsequent
  751  year.
  752         2. The amount of interest which is excluded from taxable
  753  income under s. 103(a) of the Internal Revenue Code or any other
  754  federal law, less the associated expenses disallowed in the
  755  computation of taxable income under s. 265 of the Internal
  756  Revenue Code or any other law, excluding 60 percent of any
  757  amounts included in alternative minimum taxable income, as
  758  defined in s. 55(b)(2) of the Internal Revenue Code, if the
  759  taxpayer pays tax under s. 220.11(3).
  760         3. In the case of a regulated investment company or real
  761  estate investment trust, an amount equal to the excess of the
  762  net long-term capital gain for the taxable year over the amount
  763  of the capital gain dividends attributable to the taxable year.
  764         4. That portion of the wages or salaries paid or incurred
  765  for the taxable year which is equal to the amount of the credit
  766  allowable for the taxable year under s. 220.181. This
  767  subparagraph shall expire on the date specified in s. 290.016
  768  for the expiration of the Florida Enterprise Zone Act.
  769         5. That portion of the ad valorem school taxes paid or
  770  incurred for the taxable year which is equal to the amount of
  771  the credit allowable for the taxable year under s. 220.182. This
  772  subparagraph shall expire on the date specified in s. 290.016
  773  for the expiration of the Florida Enterprise Zone Act.
  774         6. The amount taken as a credit under s. 220.195 which is
  775  deductible from gross income in the computation of taxable
  776  income for the taxable year.
  777         7. That portion of assessments to fund a guaranty
  778  association incurred for the taxable year which is equal to the
  779  amount of the credit allowable for the taxable year.
  780         8. In the case of a nonprofit corporation which holds a
  781  pari-mutuel permit and which is exempt from federal income tax
  782  as a farmers’ cooperative, an amount equal to the excess of the
  783  gross income attributable to the pari-mutuel operations over the
  784  attributable expenses for the taxable year.
  785         9. The amount taken as a credit for the taxable year under
  786  s. 220.1895.
  787         10. Up to nine percent of the eligible basis of any
  788  designated project which is equal to the credit allowable for
  789  the taxable year under s. 220.185.
  790         11. The amount taken as a credit for the taxable year under
  791  s. 220.1875. The addition in this subparagraph is intended to
  792  ensure that the same amount is not allowed for the tax purposes
  793  of this state as both a deduction from income and a credit
  794  against the tax. This addition is not intended to result in
  795  adding the same expense back to income more than once.
  796         12. The amount taken as a credit for the taxable year under
  797  s. 220.192.
  798         13. The amount taken as a credit for the taxable year under
  799  s. 220.193.
  800         14. Any portion of a qualified investment, as defined in s.
  801  288.9913, which is claimed as a deduction by the taxpayer and
  802  taken as a credit against income tax pursuant to s. 288.9916.
  803         15. The costs to acquire a tax credit pursuant to s.
  804  288.1254(5) that are deducted from or otherwise reduce federal
  805  taxable income for the taxable year.
  806         16. The amount taken as a credit for the taxable year
  807  pursuant to s. 220.194.
  808         17. The amount taken as a credit for the taxable year under
  809  s. 220.196. The addition in this subparagraph is intended to
  810  ensure that the same amount is not allowed for the tax purposes
  811  of this state as both a deduction from income and a credit
  812  against the tax. The addition is not intended to result in
  813  adding the same expense back to income more than once.
  814         18.The amount taken as a credit for the taxable year under
  815  s. 220.1877. The addition in this subparagraph is intended to
  816  ensure that the same amount is not allowed for the tax purposes
  817  of this state as both a deduction from income and a credit
  818  against the tax. This addition is not intended to result in
  819  adding the same expense back to income more than once.
  820         Section 6. Section 220.1877, Florida Statutes, is created
  821  to read:
  822         220.1877Credit for contributions to eligible
  823  microfinancing organizations.—
  824         (1)There is allowed a credit of 100 percent of an eligible
  825  contribution made to an eligible microfinancing organization
  826  under s. 287.09475 against any tax due for a taxable year under
  827  this chapter after the application of any other allowable
  828  credits by the taxpayer. An eligible contribution must be made
  829  to an eligible microfinancing organization on or before the date
  830  the taxpayer is required to file a return pursuant to s.
  831  220.222. The credit granted by this section shall be reduced by
  832  the difference between the amount of federal corporate income
  833  tax taking into account the credit granted by this section and
  834  the amount of federal corporate income tax without application
  835  of the credit granted by this section.
  836         (2)A taxpayer who files a Florida consolidated return as a
  837  member of an affiliated group pursuant to s. 220.131(1) may be
  838  allowed the credit on a consolidated return basis; however, the
  839  total credit taken by the affiliated group is subject to the
  840  limitation established under subsection (1).
  841         (3)The provisions of s. 287.09475 apply to the credit
  842  authorized by this section.
  843         (4)If a taxpayer applies and is approved for a credit
  844  under s. 287.09475 after timely requesting an extension to file
  845  under s. 220.222(2):
  846         (a)The credit does not reduce the amount of tax due for
  847  purposes of the department’s determination as to whether the
  848  taxpayer was in compliance with the requirement to pay tentative
  849  taxes under ss. 220.222 and 220.32.
  850         (b)The taxpayer’s noncompliance with the requirement to
  851  pay tentative taxes shall result in the revocation and
  852  rescindment of any such credit.
  853         (c)The taxpayer shall be assessed for any taxes,
  854  penalties, or interest due from the taxpayer’s noncompliance
  855  with the requirement to pay tentative taxes.
  856         Section 7. Section 561.1215, Florida Statutes, is created
  857  to read:
  858         561.1215Credit for contributions to eligible
  859  microfinancing organizations.—There is allowed a credit of 100
  860  percent of an eligible contribution made to an eligible
  861  microfinancing organization under s. 287.09475 against any tax
  862  due under s. 563.05, s. 564.06, or s. 565.12, except excise
  863  taxes imposed on wine produced by manufacturers in this state
  864  from products grown in this state. However, a credit allowed
  865  under this section may not exceed 90 percent of the tax due on
  866  the return the credit is taken. For purposes of the
  867  distributions of tax revenue under ss. 561.121 and 564.06(10),
  868  the division shall disregard any tax credits allowed under this
  869  section to ensure that any reduction in tax revenue received
  870  that is attributable to the tax credits results only in a
  871  reduction in distributions to the General Revenue Fund. The
  872  provisions of s. 287.09475 apply to the credit authorized by
  873  this section.
  874         Section 8. Section 624.51057, Florida Statutes, is created
  875  to read:
  876         624.51057Credit for contributions to eligible
  877  microfinancing organizations.—
  878         (1)There is allowed a credit of 100 percent of an eligible
  879  contribution made to an eligible microfinancing organization
  880  under s. 287.09475 against any tax due for a taxable year under
  881  s. 624.509(1) after deducting from such tax deductions for
  882  assessments made pursuant to s. 440.51; credits for taxes paid
  883  under ss. 175.101 and 185.08; credits for income taxes paid
  884  under chapter 220; and the credit allowed under s. 624.509(5),
  885  as such credit is limited by s. 624.509(6). An insurer claiming
  886  a credit against premium tax liability under this section is not
  887  required to pay any additional retaliatory tax levied pursuant
  888  to s. 624.5091 as a result of claiming such credit. Section
  889  624.5091 does not limit such credit in any manner.
  890         (2)The provisions of s. 287.09475 apply to the credit
  891  authorized by this section.
  892         Section 9. The amendments made by this act to ss. 220.13,
  893  220.1877, and 287.09475, Florida Statutes, apply to taxable
  894  years beginning on or after January 1, 2020.
  895         Section 10. This act shall take effect upon becoming a law.

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