House Bill hb0777e1

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                                        CS/HB 777, First Engrossed



  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

  6         tax-credit program,

  7         qualified-defense-contractor tax-refund

  8         program, qualified target industry tax-refund

  9         program, high impact sector performance

10         program, and quick-action closing fund program;

11         specifying that the exemption does not preclude

12         publication of aggregate data or release of

13         names of qualifying businesses and refund

14         amounts; amending s. 213.053, F.S.; adding an

15         exception to the exemption; amending s.

16         443.1715, F.S.; adding an exception to the

17         exemption; providing a statement of public

18         necessity; providing an effective date.

19

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

21

22         Section 1.  Section 288.1067, Florida Statutes, is

23  created to read:

24         288.1067  Confidentiality of records.--

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

26  Tourism, Trade, and Economic Development, Enterprise Florida,

27  Inc., or county or municipal governmental entities, and their

28  employees or agents, pursuant to the incentive programs for

29  qualified businesses as provided in s. 220.191, s. 288.1045,

30  s. 288.106, s. 288.108, or s. 288.1088 is confidential and

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


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                                        CS/HB 777, First Engrossed



  1  I of the State Constitution, for a period not to exceed the

  2  duration of the relevant tax refund, tax credit, or incentive

  3  agreement:

  4         (a)  The business's federal employer identification

  5  number, unemployment compensation account number, and Florida

  6  sales tax registration number.

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

  8  812.081. Notwithstanding any provision of this section, trade

  9  secret information shall continue to be confidential and

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

11  incentive agreement.

12         (c)  The percentage of the business's sales occurring

13  outside this state and, for businesses applying under s.

14  288.1045, the percentage of the business's gross receipts

15  derived from Department of Defense contracts during the 5

16  years immediately preceding the date the business's

17  application is submitted.

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

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

20  for certification.

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

22  those jobs created by the project and any detailed proprietary

23  business information or an employee's personal identifying

24  information, held as evidence of the achievement or

25  nonachievement of the wage requirements of the tax refund, tax

26  credit, or incentive agreement programs or of the job-creation

27  requirements of such programs.

28         (f)  Any proprietary business information regarding

29  capital investment in eligible building and equipment made by

30  the qualified business project when held by the Office of

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


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                                        CS/HB 777, First Engrossed



  1  achievement or nonachievement of the investment requirements

  2  for the tax-credit certification under s. 220.191, for the

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

  4  quick-action closing fund agreement under s. 288.1088.  

  5         (g)  The amount of:

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

  7  pursuant to chapter 212;

  8         2.  Corporate income taxes paid pursuant to chapter

  9  220;

10         3.  Intangible personal property taxes paid pursuant to

11  chapter 199;

12         4.  Emergency excise taxes paid pursuant to chapter

13  221;

14         5.  Insurance premium taxes paid pursuant to chapter

15  624;

16         6.  Excise taxes paid on documents pursuant to chapter

17  201; or

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

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20  which the qualified business reports on its application for

21  certification or reports during the term of the tax refund

22  agreement, and for which the qualified business claims a tax

23  refund under s. 288.1045 or s. 288.106, and any such

24  information held as evidence of the achievement or

25  nonachievement of performance items contained in the tax

26  refund agreement.

27         (2)  Nothing contained in this section shall prevent

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

29  Enterprise Florida, Inc., from releasing:

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

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


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                                        CS/HB 777, First Engrossed



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

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

  3  228.1045 or s. 288.106. However, for a business applying under

  4  s. 288.1045 based on obtaining a new Department of Defense

  5  contract, the total number of jobs expected and the amount of

  6  tax refunds claimed shall not be released until the new

  7  Department of Defense contract is awarded;

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

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

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

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

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

13         (3)  Nothing contained in this section shall prevent

14  the Office of Tourism, Trade and Economic Development or

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

16  aggregate and so classified as to prevent the identification

17  of a single qualified applicant.

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

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

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

21  saved from repeal through reenactment by the Legislature.

22         Section 2.  Paragraph (k) of subsection (7) of section

23  213.053, Florida Statutes, is amended to read:

24         213.053  Confidentiality and information sharing.--

25         (7)  Notwithstanding any other provision of this

26  section, the department may provide:

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

28  201, 212, 220, and 221, and 624 to the Office of Tourism,

29  Trade, and Economic Development, or its employees or agents

30  that are identified in writing by the office to the

31  department, in the its administration of the tax refund


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                                        CS/HB 777, First Engrossed



  1  program for qualified defense contractors authorized by s.

  2  288.1045 and the tax refund program for qualified target

  3  industry businesses authorized by s. 288.106.

  4         2.  Information relative to tax credits taken by a

  5  business under s. 220.191 and exemptions or tax refunds

  6  received by a business under s. 212.08(5)(j) to the Office of

  7  Tourism, Trade, and Economic Development, or its employees or

  8  agents that are identified in writing by the office to the

  9  department, in the administration and evaluation of the

10  capital investment tax credit program authorized in s. 220.191

11  and the semiconductor, defense, and space tax exemption

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

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14  Disclosure of information under this subsection shall be

15  pursuant to a written agreement between the executive director

16  and the agency.  Such agencies, governmental or

17  nongovernmental, shall be bound by the same requirements of

18  confidentiality as the Department of Revenue.  Breach of

19  confidentiality is a misdemeanor of the first degree,

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

21         Section 3.  Subsection (1) of section 443.1715, Florida

22  Statutes, is amended to read:

23         443.1715  Disclosure of information; confidentiality.--

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

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

26  employing unit or from any individual pursuant to the

27  administration of this chapter, and any determination

28  revealing such information, must, except to the extent

29  necessary for the proper presentation of a claim or upon

30  written authorization of the claimant who has a workers'

31  compensation claim pending, must be held confidential and


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                                        CS/HB 777, First Engrossed



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

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

  3  available only to public employees in the performance of their

  4  public duties, including employees of the Department of

  5  Education in obtaining information for the Florida Education

  6  and Training Placement Information Program and the Office of

  7  Tourism, Trade, and Economic Development in its administration

  8  of the qualified defense contractor tax refund program

  9  authorized by s. 288.1045 and the qualified target industry

10  tax refund program authorized by s. 288.106. Except as

11  otherwise provided by law, public employees receiving such

12  information must retain the confidentiality of such

13  information. Any claimant, or the claimant's legal

14  representative, at a hearing before an appeals referee or the

15  commission shall be supplied with information from such

16  records to the extent necessary for the proper presentation of

17  her or his claim. Any employee or member of the commission or

18  any employee of the division, or any other person receiving

19  confidential information, who violates any provision of this

20  subsection commits a misdemeanor of the second degree,

21  punishable as provided in s. 775.082 or s. 775.083. However,

22  the division may furnish to any employer copies of any report

23  previously submitted by such employer, upon the request of

24  such employer, and may furnish to any claimant copies of any

25  report previously submitted by such claimant, upon the request

26  of such claimant, and the division is authorized to charge

27  therefor such reasonable fee as the division may by rule

28  prescribe not to exceed the actual reasonable cost of the

29  preparation of such copies. Fees received by the division for

30  copies as provided in this subsection must be deposited to the

31  credit of the Employment Security Administration Trust Fund.


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                                        CS/HB 777, First Engrossed



  1         Section 4.  The Legislature finds that it is a public

  2  necessity to provide confidentiality for certain information

  3  concerning businesses that is obtained through the

  4  administration of the tax refund, tax credit, and incentive

  5  programs for qualified defense contractors, qualified

  6  target-industry businesses, high-impact performance incentive

  7  businesses, quick-action closing fund businesses, and

  8  capital-investment tax-credit businesses under sections

  9  220.191, 288.1045, 288.106, 288.108, and 288.1088, Florida

10  Statutes.  The disclosure of information such as trade

11  secrets, tax identification numbers, analyses of gross

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

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

14  detailed documentation to substantiate such performance

15  information, could injure a business in the marketplace by

16  providing its competitors with detailed insights into the

17  financial status and the strategic plans of the business,

18  thereby diminishing the advantage that the business maintains

19  over those who do not possess such information. The

20  disclosure, prior to the award of a new Department of Defense

21  contract, of information such as the number of new jobs to be

22  created to perform the contract and the amount of refunds

23  claimed could injure a business by providing competitors with

24  detailed insights into the resources of the business and

25  diminish the business's chances of obtaining a new Department

26  of Defense contract. Some of the documentation supplied to

27  support a business's tax refund and credit claims, or other

28  incentive claims, could reveal private information, such as

29  employee names and social security numbers, concerning that

30  business's employees.  Without this exemption, private-sector

31  businesses, whose records generally are not required to be


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                                        CS/HB 777, First Engrossed



  1  open to the public, might refrain from participating in these

  2  economic-development programs and thus would not be able to

  3  use the tax refunds available under the programs. If a

  4  business were unable to use the tax refund, it might choose to

  5  locate its employment and other investment activities outside

  6  the state, depriving the state and the public of the potential

  7  economic benefits associated with such business activities in

  8  Florida. The harm to businesses in the marketplace and to the

  9  effective administration of these economic-development

10  programs caused by the public disclosure of such information

11  far outweighs the public benefits derived from its release. In

12  addition, because the confidentiality provided by this act

13  does not preclude the reporting of statistics in the aggregate

14  concerning the programs, as well as the names of businesses

15  participating in the programs and the amount of tax refunds

16  and other incentives awarded and claimed, the public has

17  access to information important to an assessment of the

18  performance of those programs.

19         Section 5.  This act shall take effect upon becoming a

20  law.

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