Senate Bill sb2320

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    Florida Senate - 2005                                  SB 2320

    By Senator Siplin





    19-1576-05

  1                      A bill to be entitled

  2         An act relating to community reinvestment

  3         plans; providing definitions; authorizing a

  4         business to develop and implement a community

  5         reinvestment plan for tax-credit purposes;

  6         providing certain requirements for a community

  7         reinvestment plan; providing a tax credit for a

  8         business that meets the requirements of its

  9         community reinvestment plan; providing for the

10         carryover of credit; providing for the duties

11         of the Financial Services Commission; requiring

12         the commission to adopt rules, in consultation

13         with the Department of Community Affairs and

14         the Florida Housing Finance Corporation,

15         regarding community reinvestment plans;

16         authorizing a business to list its community

17         reinvestment plan on its website; requiring the

18         Financial Service Commission, the Department of

19         Community Affairs, the Office of Tourism,

20         Trade, and Economic Development, and the

21         Florida Housing Finance Corporation to prepare

22         a strategic plan relating to access to

23         financial capital in certain areas of the

24         state; providing requirements for the strategic

25         plan; requiring the commission to create and

26         maintain an Internet site to include certain

27         public information on financial matters;

28         providing an effective date.

29  

30  Be It Enacted by the Legislature of the State of Florida:

31  

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    Florida Senate - 2005                                  SB 2320
    19-1576-05




 1         Section 1.  COMMUNITY REINVESTMENT PLANS.--

 2         (1)  DEFINITIONS.--As used in this section, the term:

 3         (a)  "Business" or "business firm" means any business

 4  entity authorized to do business in this state as defined in

 5  paragraph (d), and any bank or savings and loan association as

 6  defined in section 220.62, Florida Statutes, subject to the

 7  tax imposed by chapter 220.

 8         (b)  "Community reinvestment plan" means an annual

 9  community reinvestment strategic plan developed and

10  implemented by a business under this section.

11         (c)  "Commission" means the Financial Services

12  Commission.

13         (d)  "Corporation" includes all domestic corporations;

14  foreign corporations qualified to do business in this state or

15  actually doing business in this state; joint-stock companies;

16  limited liability companies, under chapter 608, Florida

17  Statutes; common-law declarations of trust, under chapter 609,

18  Florida Statutes; corporations not for profit, under chapter

19  617, Florida Statutes; agricultural cooperative marketing

20  associations, under chapter 618, Florida Statutes;

21  professional service corporations, under chapter 621, Florida

22  Statutes; foreign unincorporated associations, under chapter

23  622, Florida Statutes; private school corporations, under

24  chapter 623, Florida Statutes; foreign corporations not for

25  profit which are carrying on their activities in this state;

26  and all other organizations, associations, legal entities, and

27  artificial persons that are created by or pursuant to the

28  statutes of this state, the United States, or any other state,

29  territory, possession, or jurisdiction. The term "corporation"

30  does not include proprietorships, even if using a fictitious

31  name; partnerships of any type, as such; limited liability

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    Florida Senate - 2005                                  SB 2320
    19-1576-05




 1  companies that are taxable as partnerships for federal income

 2  tax purposes; state or public fairs or expositions, under

 3  chapter 616, Florida Statutes; estates of decedents or

 4  incompetents; testamentary trusts; or private trusts.

 5         (e)  "Targeted population" means individuals or an

 6  identifiable group of individuals who are low-income persons

 7  or otherwise lack adequate access to loans or equity

 8  investments.

 9         (f)  "Underserved area" means an investment area as

10  defined by the Community Development Banking and Financial

11  Institutions Act of 1994, 12 U.S.C. s. 4702, as amended.

12         (2)  APPLICABILITY.--This section applies only to a

13  business that is subject to a corporate income tax.

14         (3)  COMMUNITY REINVESTMENT STRATEGIC PLAN.--A

15  business, in accordance with rules adopted by the commission

16  under subsection (5), may develop and implement an annual

17  community reinvestment strategic plan in order to be eligible

18  to receive a tax credit as provided in subsection (4). A

19  business's plan must include the business's specific targets

20  for the expenditure of funds for community reinvestment

21  purposes, including:

22         (a)  Lending money to members of a targeted population

23  or underserved areas in the state; and

24         (b)  Investing in or with nonprofit lending

25  institutions for lending activities in underserved areas or

26  with members of a targeted population in the state.

27         (4)(a)  TAX CREDIT.--There shall be allowed a credit

28  against the tax imposed by chapter 220, Florida Statutes, to

29  any business that meets each target set forth in its community

30  reinvestment plan as certified by rule of the commission.

31  

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    Florida Senate - 2005                                  SB 2320
    19-1576-05




 1         (b)  If the credit granted pursuant to this section is

 2  not fully used in any one year, the unused amount may be

 3  carried forward for a period not to exceed 5 years. The

 4  carryover credit may be used in a subsequent year when the tax

 5  imposed by this chapter for such year exceeds the credit for

 6  such year under this section after applying the other credits

 7  and unused credit carryovers in the order provided in section

 8  220.02(8), Florida Statutes. The amount of credit taken under

 9  this section in any one year, however, may not exceed $25,000,

10  or, if no less than 20 percent of the employees of the

11  business are residents of an enterprise zone, excluding

12  temporary employees, the amount shall not exceed $50,000.

13         (5)  DUTIES OF THE FINANCIAL SERVICES COMMISSION;

14  RULEMAKING AUTHORITY.--

15         (a)  The commission, in consultation with the

16  Department of Community Affairs and the Office of Tourism,

17  Trade, and Economic Development, shall assist businesses in

18  identifying and setting community reinvestment targets for the

19  submission of community reinvestment plans.

20         (b)  The commission shall adopt policies and rules as

21  necessary to administer this section, including policies and

22  rules that:

23         1.  Provide businesses with specific guidelines and

24  procedures for the adoption and submission to the commission

25  of community reinvestment plans, including a reasonable

26  timeframe for implementation of the plan; and

27         2.  Create a certification process that meets each

28  target set under the businesses' respective plans.

29         (c)  The commission may consult with and request

30  information relevant to this section from the Department of

31  Community Affairs and the Florida Housing Finance Corporation.

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    Florida Senate - 2005                                  SB 2320
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 1  In developing rules and policies under this section, the

 2  commission shall consider any information obtained under this

 3  subsection.

 4         (6)(a)  INTERNET POSTING.--A business may post its

 5  community reinvestment plan on any Internet website maintained

 6  by the business. The plan must be posted in a format that is

 7  readily accessible to and understandable by a member of the

 8  public. The business shall notify the commission if it posts a

 9  plan.

10         (b)  The commission shall maintain on its Internet

11  website a link to each business's community reinvestment plan

12  that is posted on the Internet.

13         Section 2.  ACCESS TO FINANCIAL CAPITAL.--

14         (1)  DUTY OF CERTAIN AGENCIES TO PREPARE STRATEGIC PLAN

15  CONCERNING ACCESS TO FINANCIAL CAPITAL.--The Financial

16  Services Commission that oversees the Office of Financial

17  Regulation within the Department of Financial Services, the

18  Department of Community Affairs, the Office of Tourism, Trade,

19  and Economic Development, and the Florida Housing Finance

20  Corporation shall prepare a biennial strategic plan relating

21  to access to financial capital in unserved and underserved

22  areas of the state.

23         (2)  SUBMISSION OF PLAN AND RECOMMENDATIONS.--By

24  November 1 of each even-numbered year, the commission shall:

25         (a)  Submit the strategic plan required by this section

26  to the Governor, the President of the Senate, and the Speaker

27  of the House of Representatives; and

28         (b)  Make recommendations on actions that the

29  legislature may take to improve access to capital in unserved

30  and underserved areas of the state.

31         (3)  CONTENTS OF PLAN.--The strategic plan must:

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    Florida Senate - 2005                                  SB 2320
    19-1576-05




 1         (a)  Define and identify unserved and underserved areas

 2  in the state with regard to housing ownership, small business

 3  loans, availability of venture capital, lending options, and

 4  other relevant financial capital issues;

 5         (b)  Quantify community investment and lending

 6  resources available by location in the state;

 7         (c)  Develop specific targets and plans for increasing

 8  investment in unserved and underserved areas; and

 9         (d)  Enlist private financial institutions to use the

10  strategic plan to set institutional targets.

11         (4)  FINANCIAL CAPITAL INFORMATION AVAILABLE ON

12  INTERNET.--The commission shall create and maintain an

13  Internet site through the state's on-line government portal or

14  any successor to that portal that includes:

15         (a)  A list of traditional and nontraditional sources

16  for loans that can be searched by a borrower based on the

17  borrower's financial characteristics;

18         (b)  Advice to small businesses on how to develop a

19  business plan;

20         (c)  Advice on how to enhance credit scores;

21         (d)  Advice on how to establish a relationship with a

22  financial institution;

23         (e)  Information on interest rates available in the

24  state;

25         (f)  Information on the cost of loans available to

26  borrowers of varied risk levels in the state;

27         (g)  Information on how to compare mortgage loans

28  available in the state;

29         (h)  Information regarding lending practices of

30  specific businesses in the state; and

31         (i)  Links to relevant consumer financial websites.

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    Florida Senate - 2005                                  SB 2320
    19-1576-05




 1         Section 3.  This act shall take effect upon becoming a

 2  law.

 3  

 4            *****************************************

 5                          SENATE SUMMARY

 6    Authorizes a business to develop and implement a
      community reinvestment plan for tax-credit purposes.
 7    Provides certain requirements for a community
      reinvestment plan. Provides a tax credit for a business
 8    that meets the requirements of its community reinvestment
      plan. Provides for the carryover of credit. Provides for
 9    the duties of the Financial Services Commission. Requires
      the commission to adopt rules, in consultation with the
10    Department of Community Affairs and the Florida Housing
      Finance Corporation, regarding community reinvestment
11    plans. Authorizes a business to provide its community
      reinvestment plan on its website. Requires the Financial
12    Service Commission, the Department of Community Affairs,
      the Office of Tourism, Trade, and Economic Development,
13    and the Florida Housing Finance Corporation to prepare a
      strategic plan relating to access to financial capital in
14    certain underserved areas of the state. Provides
      requirements for the strategic plan. Requires the
15    commission to create and maintain an Internet site to
      include certain information on financial matters.
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