House Bill hb0777c1

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    Florida House of Representatives - 2002              CS/HB 777

        By the Council for Competitive Commerce and Representative
    Kilmer





  1                      A bill to be entitled

  2         An act relating to public records; creating s.

  3         288.1067, F.S.; creating a public records

  4         exemption for specified business information

  5         received under the capital investment tax

  6         credit program, qualified defense contractors

  7         tax refund program, qualified target industry

  8         tax refund program, high impact sector

  9         performance program, and quick action closing

10         fund program; specifying that the exemption

11         does not preclude publication of aggregate data

12         or release of names of qualifying businesses

13         and refund amounts; providing that the public

14         records exemption applies to qualified

15         aviation-industry businesses; amending s.

16         213.053, F.S.; authorizing release of certain

17         additional information in administering certain

18         tax credit or exemption programs; amending ss.

19         443.171 and 443.1715, F.S.; including the

20         refund program for aviation-industry businesses

21         within certain exceptions to certain public

22         records exemptions; providing a statement of

23         public necessity; providing contingent effect;

24         providing effective dates.

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

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28         Section 1.  Section 288.1067, Florida Statutes, is

29  created to read:

30         288.1067  Confidentiality of records.--

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  1         (1)  The following information held by the Office of

  2  Tourism, Trade, and Economic Development or Enterprise

  3  Florida, Inc., or county or municipal governmental entities,

  4  and their employees or agents, pursuant to the incentive

  5  programs for qualified businesses as provided in s. 220.191,

  6  s. 288.1045, s. 288.106, s. 288.108, or s. 288.1088 is

  7  confidential and exempt from the provisions of s. 119.07(1)

  8  and s. 24(a), Art. I of the State Constitution, for a period

  9  not to exceed the duration of the relevant tax refund, tax

10  credit, or incentive agreement programs:

11         (a)  The business' federal employer identification

12  number, unemployment compensation account number, and Florida

13  sales tax registration number.

14         (b)  Any trade secret information as defined in s.

15  812.081. Notwithstanding any provision of this section, trade

16  secret information shall continue to be confidential and

17  exempt after the duration of the tax refund, tax credit, or

18  incentive agreement programs.

19         (c)  The percentage of the business' sales occurring

20  outside of this state. For businesses applying under s.

21  288.1045, the percentage of the business' gross receipts

22  derived from United States Department of Defense contracts

23  during the 5 years immediately preceding the date the

24  business' application is submitted.

25         (d)  The anticipated wages for the project jobs that

26  the business plans to create, as reported on the application

27  for certification.

28         (e)  The average wage actually paid by the business for

29  those jobs created by the project, and any detailed

30  proprietary business information or an employee's personal

31  identifying information, held as evidence of the achievement

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  1  or nonachievement of the wage requirements of the tax refund,

  2  tax credit, or incentive agreement programs or of the job

  3  creation requirements of such programs.

  4         (f)  Any proprietary business information regarding

  5  capital investment in eligible building and equipment made by

  6  the qualified business project when held by the Office of

  7  Tourism, Trade, and Economic Development as evidence of the

  8  achievement or nonachievement of the investment requirements

  9  for the tax credit certification under s. 220.191, for the

10  high impact performance agreement under s. 288.108, or for the

11  quick action closing fund agreement under s. 288.1088.

12         (g)  The amount of:

13         1.  Taxes on sales, use, and other transactions paid

14  pursuant to chapter 212;

15         2.  Corporate income taxes paid pursuant to chapter

16  220;

17         3.  Intangible personal property taxes paid pursuant to

18  chapter 199;

19         4.  Emergency excise taxes paid pursuant to chapter

20  221;

21         5.  Insurance premium taxes paid pursuant to chapter

22  624;

23         6.  Excise taxes paid on documents pursuant to chapter

24  201; or

25         7.  Ad valorem taxes paid, as defined in s. 220.03(1),

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27  which the qualified business reports on its application for

28  certification or reports during the term of the tax refund

29  agreement for which the qualified business claims a tax refund

30  under s. 288.1045 or s. 288.106, and any information held as

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  1  evidence of the achievement or nonachievement of performance

  2  items contained in the tax refund agreement.

  3         (2)  Nothing contained in this section shall prevent

  4  the Office of Tourism, Trade, and Economic Development or

  5  Enterprise Florida, Inc., from releasing:

  6         (a)  The names of qualified businesses, the total

  7  number of jobs each business expects to create, the total

  8  number of jobs created by each business, and the amount of tax

  9  refunds awarded to and claimed by each business under s.

10  228.1045 or s. 288.106. However, for a business applying under

11  s. 288.1045 based on obtaining a new United States Department

12  of Defense contract, the total number of jobs expected and the

13  amount of tax refunds claimed shall not be released until the

14  new United States Department of Defense contract is awarded;

15         (b)  The amount of incentives awarded and claimed by

16  each business under s. 288.108 or s. 288.1088; or

17         (c)  The names of qualified businesses, the total

18  number of jobs each business expects to create, and the total

19  number of jobs created by each business under s. 220.191.

20         (3)  Nothing contained in this section shall prevent

21  the Office of Tourism, Trade, and Economic Development or

22  Enterprise Florida, Inc., from publishing statistics in the

23  aggregate and so classified as to prevent the identification

24  of a single qualified applicant.

25         (4)  This section is subject to the Open Government

26  Sunset Review Act of 1995 in accordance with s. 119.15 and

27  shall stand repealed on October 2, 2007, unless reviewed and

28  saved from repeal through reenactment by the Legislature.

29         Section 2.  Effective upon passage of House Bill 779 or

30  similar legislation, subsection (5) is added to section

31  288.1067, Florida Statutes, as created by this act, to read:

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  1         288.1067  Confidentiality of records.--

  2         (5)  The provisions of this section apply to a

  3  qualified aviation-industry business as defined in s.

  4  288.1045.  In addition, the amount of aviation fuel taxes paid

  5  pursuant to s. 206.9825, when reported on an application for

  6  certification as an aviation-industry business or paid during

  7  the term of the aviation-industry business' tax refund

  8  agreement, and for which the qualified aviation-industry

  9  business claims a tax refund under s. 288.1045, and is held as

10  evidence of the achievement, or nonachievement, of performance

11  items contained in the tax refund agreement, is confidential

12  and exempt from the provisions of s. 119.07(1) and s. 24(a),

13  Art. I of the State Constitution, when held by the Office of

14  Tourism, Trade, and Economic Development or Enterprise

15  Florida, Inc., and their employees or agents, for a period not

16  to exceed the duration of the tax refund agreement.

17         Section 3.  Paragraph (k) of subsection (7) of section

18  213.053, Florida Statutes, is amended to read:

19         213.053  Confidentiality and information sharing.--

20         (7)  Notwithstanding any other provision of this

21  section, the department may provide:

22         (k)1.  Payment information relative to chapters 199,

23  201, 212, 220, and 221, and 624 to the Office of Tourism,

24  Trade, and Economic Development or its employees or agents in

25  its administration of the tax refund program for qualified

26  defense contractors authorized by s. 288.1045 and the tax

27  refund program for qualified target industry businesses

28  authorized by s. 288.106.

29         2.  Information regarding tax credits received by a

30  business under s. 220.191 and exemptions or tax refunds

31  received by a business under s. 212.08(5)(j) held by the

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  1  Office of Tourism, Trade, and Economic Development, or its

  2  employees or agents, in the administration and evaluation of

  3  the capital investment tax credit program authorized in s.

  4  220.191 and the semiconductor, defense, and space tax

  5  exemption program authorized in s. 212.08(5)(j).

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  7  Disclosure of information under this subsection shall be

  8  pursuant to a written agreement between the executive director

  9  and the agency.  Such agencies, governmental or

10  nongovernmental, shall be bound by the same requirements of

11  confidentiality as the Department of Revenue.  Breach of

12  confidentiality is a misdemeanor of the first degree,

13  punishable as provided by s. 775.082 or s. 775.083.

14         Section 4.  Contingent upon passage of House Bill 779

15  and effective upon becoming a law, subsection (7) of section

16  443.171, Florida Statutes, is amended to read:

17         443.171  Division and commission; powers and duties;

18  rules; advisory council; records and reports; proceedings;

19  state-federal cooperation.--

20         (7)  RECORDS AND REPORTS.--Each employing unit shall

21  keep true and accurate work records, containing such

22  information as the division may prescribe. Such records shall

23  be open to inspection and be subject to being copied by the

24  division at any reasonable time and as often as may be

25  necessary. The division or an appeals referee may require from

26  any employing unit any sworn or unsworn reports, with respect

27  to persons employed by it, deemed necessary for the effective

28  administration of this chapter. However, a state or local

29  governmental agency performing intelligence or

30  counterintelligence functions need not report an employee if

31  the head of such agency has determined that reporting the

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  1  employee could endanger the safety of the employee or

  2  compromise an ongoing investigation or intelligence mission.

  3  Information revealing the employing unit's or individual's

  4  identity thus obtained from the employing unit or from any

  5  individual pursuant to the administration of this chapter,

  6  shall, except to the extent necessary for the proper

  7  presentation of a claim or upon written authorization of the

  8  claimant who has a workers' compensation claim pending, be

  9  held confidential and exempt from the provisions of s.

10  119.07(1). Such information shall be available only to public

11  employees in the performance of their public duties, including

12  employees of the Department of Education in obtaining

13  information for the Florida Education and Training Placement

14  Information Program and the Office of Tourism, Trade, and

15  Economic Development in its administration of the qualified

16  defense contractor tax refund program for qualified defense

17  contractors and aviation-industry businesses authorized by s.

18  288.1045 and, the qualified target industry business tax

19  refund program authorized by s. 288.106. Any claimant, or the

20  claimant's legal representative, at a hearing before an

21  appeals referee or the commission shall be supplied with

22  information from such records to the extent necessary for the

23  proper presentation of her or his claim. Any employee or

24  member of the commission or any employee of the division, or

25  any other person receiving confidential information, who

26  violates any provision of this subsection is guilty of a

27  misdemeanor of the second degree, punishable as provided in s.

28  775.082 or s. 775.083. However, the division may furnish to

29  any employer copies of any report previously submitted by such

30  employer, upon the request of such employer, and the division

31  is authorized to charge therefor such reasonable fee as the

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  1  division may by rule prescribe not to exceed the actual

  2  reasonable cost of the preparation of such copies. Fees

  3  received by the division for copies provided under this

  4  subsection shall be deposited to the credit of the Employment

  5  Security Administration Trust Fund.

  6         Section 5.  Contingent upon passage of House Bill 779

  7  and effective upon becoming a law, subsection (1) of section

  8  443.1715, Florida Statutes, is amended to read:

  9         443.1715  Disclosure of information; confidentiality.--

10         (1)  RECORDS AND REPORTS.--Information revealing the

11  employing unit's or individual's identity obtained from the

12  employing unit or from any individual pursuant to the

13  administration of this chapter, and any determination

14  revealing such information, must, except to the extent

15  necessary for the proper presentation of a claim or upon

16  written authorization of the claimant who has a workers'

17  compensation claim pending, must be held confidential and

18  exempt from the provisions of s. 119.07(1) and s. 24(a), Art.

19  I of the State Constitution. Such information may be made

20  available only to public employees in the performance of their

21  public duties, including employees of the Department of

22  Education in obtaining information for the Florida Education

23  and Training Placement Information Program and the Office of

24  Tourism, Trade, and Economic Development in its administration

25  of the qualified defense contractor tax refund program for

26  qualified defense contractors and aviation-industry businesses

27  authorized by s. 288.1045. Except as otherwise provided by

28  law, public employees receiving such information must retain

29  the confidentiality of such information. Any claimant, or the

30  claimant's legal representative, at a hearing before an

31  appeals referee or the commission shall be supplied with

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  1  information from such records to the extent necessary for the

  2  proper presentation of her or his claim. Any employee or

  3  member of the commission or any employee of the division, or

  4  any other person receiving confidential information, who

  5  violates any provision of this subsection commits a

  6  misdemeanor of the second degree, punishable as provided in s.

  7  775.082 or s. 775.083. However, the division may furnish to

  8  any employer copies of any report previously submitted by such

  9  employer, upon the request of such employer, and may furnish

10  to any claimant copies of any report previously submitted by

11  such claimant, upon the request of such claimant, and the

12  division is authorized to charge therefor such reasonable fee

13  as the division may by rule prescribe not to exceed the actual

14  reasonable cost of the preparation of such copies. Fees

15  received by the division for copies as provided in this

16  subsection must be deposited to the credit of the Employment

17  Security Administration Trust Fund.

18         Section 6.  The Legislature finds that it is a public

19  necessity to provide confidentiality for certain information

20  about businesses that is obtained through the administration

21  of the tax refund, tax credit, and incentive programs for

22  qualified defense contractors, qualified target industry

23  businesses, high-impact performance incentive businesses,

24  quick-action closing fund businesses, capital investment tax

25  credit businesses, and aviation-industry businesses under ss.

26  220.191, 288.1045, 288.106, 288.108, and 288.1088, Florida

27  Statutes.  The disclosure of information such as trade

28  secrets, tax identification numbers, analyses of gross

29  receipts, the amount of taxes paid, amount of capital

30  investment, and the amount of employee wages paid, and the

31  detailed documentation to substantiate such performance

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  1  information, could injure a business in the marketplace by

  2  providing its competitors with detailed insights into the

  3  financial status and the strategic plans of the business,

  4  thereby diminishing the advantage that the business maintains

  5  over those who do not possess such information. The

  6  disclosure, prior to the award of a new United States

  7  Department of Defense contract, of information such as the

  8  number of new jobs to be created to perform the contract and

  9  the amount of refunds claimed, could injure a business by

10  providing competitors with detailed insights into the

11  resources of the business and diminish the business' chances

12  of obtaining a new United States Department of Defense

13  contract. Some of the documentation supplied to support a

14  business' tax refund and credit claims, or other incentive

15  claims, could reveal private information about that business'

16  employees such as names and social security numbers.  Without

17  this exemption, private-sector businesses, whose records

18  generally are not required to be open to the public, might

19  refrain from participating in these economic development

20  programs and thus would not be able to use the tax refunds

21  available under the programs. If a business were unable to use

22  the tax refund, it might choose to locate its employment and

23  other investment activities outside the state, depriving the

24  state and the public of the potential economic benefits

25  associated with such business activities in Florida. The harm

26  to businesses in the marketplace and to the effective

27  administration of these economic development programs caused

28  by the public disclosure of such information far outweighs the

29  public benefits derived from its release. In addition, because

30  the confidentiality provided by this act does not preclude the

31  reporting of statistics in the aggregate about the programs,

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  1  as well as the names of businesses participating in the

  2  programs and the amount of tax refunds and other incentives

  3  awarded and claimed, the public has access to information

  4  important to an assessment of the performance of those

  5  programs.

  6         Section 7.  Except as otherwise provided herein, this

  7  act shall take effect upon becoming a law.

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