Senate Bill sb1024

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    Florida Senate - 2005                                  SB 1024

    By the Committee on Commerce and Consumer Services





    577-834-05

  1                      A bill to be entitled

  2         An act relating to a review under the Open

  3         Government Sunset Review Act; amending s.

  4         288.99, F.S., relating to the Certified Capital

  5         Company Act; conforming cross-references to

  6         changes made by the act; revising an exemption

  7         from the public records law provided for

  8         certain information relating to an

  9         investigation or review of a certified capital

10         company by the Office of Financial Regulation

11         of the Financial Services Commission; removing

12         the exemption provided for information

13         concerning a consumer complaint which is

14         included in information relating to an

15         investigation or review; removing the exemption

16         provided for information concerning personnel

17         of the office, and their spouses and children,

18         if such personnel are or have been involved in

19         an investigation or review that may endanger

20         life or safety; removing the exemption provided

21         for confidential information obtained by the

22         office; removing the exemption provided for

23         social security numbers of customers of

24         certified capital companies; saving the

25         exemptions from repeal under the Open

26         Government Sunset Review Act; deleting

27         provisions providing for the repeal of the

28         exemptions; 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 1024
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 1         Section 1.  Paragraph (o) of subsection (3), paragraph

 2  (b) of subsection (4), paragraph (f) of subsection (7), and

 3  subsections (15), (16), and (17) of section 288.99, Florida

 4  Statutes, are amended to read:

 5         288.99  Certified Capital Company Act.--

 6         (3)  DEFINITIONS.--As used in this section, the term:

 7         (o)  "Program Two" means the $150 million in premium

 8  tax credits to be issued under subsection (16) (17), the

 9  allocation of such credits under this section, and the

10  regulation of certified capital companies and investments made

11  by them hereunder.

12         (4)  CERTIFICATION; GROUNDS FOR DENIAL OR

13  DECERTIFICATION.--

14         (b)  An applicant for certification as a certified

15  capital company must file a verified application with the

16  Department of Banking and Finance on or before December 1,

17  1998, a date determined in rules adopted pursuant to

18  subsection (16) (17) in the case of applicants for Program

19  Two, in a form which the commission may prescribe by rule. The

20  applicant shall submit a nonrefundable application fee of

21  $7,500 to the office. The applicant shall provide:

22         1.  The name of the applicant and the address of its

23  principal office and each office in this state.

24         2.  The applicant's form and place of organization and

25  the relevant organizational documents, bylaws, and amendments

26  or restatements of such documents, bylaws, or amendments.

27         3.  Evidence from the Department of State that the

28  applicant is registered with the Department of State as

29  required by law, maintains an active status with the

30  Department of State, and has not been dissolved or had its

31  registration revoked, canceled, or withdrawn.

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    Florida Senate - 2005                                  SB 1024
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 1         4.  The applicant's proposed method of doing business.

 2         5.  The applicant's financial condition and history,

 3  including an audit report on the financial statements prepared

 4  in accordance with generally accepted accounting principles.

 5  The applicant must have, at the time of application for

 6  certification, an equity capitalization of at least $500,000

 7  in the form of cash or cash equivalents. The applicant must

 8  maintain this equity capitalization until the applicant

 9  receives an allocation of certified capital pursuant to this

10  act. If the date of the application is more than 90 days after

11  preparation of the applicant's fiscal year-end financial

12  statements, the applicant may file financial statements

13  reviewed by an independent certified public accountant for the

14  period subsequent to the audit report, together with the

15  audited financial statement for the most recent fiscal year.

16  If the applicant has been in business less than 12 months, and

17  has not prepared an audited financial statement, the applicant

18  may file a financial statement reviewed by an independent

19  certified public accountant.

20         6.  Copies of any offering materials used or proposed

21  to be used by the applicant in soliciting investments of

22  certified capital from certified investors.

23         (7)  ANNUAL TAX CREDIT; MAXIMUM AMOUNT; ALLOCATION

24  PROCESS.--

25         (f)  If the total amount of capital committed by all

26  certified investors to certified capital companies in premium

27  tax allocation claims under Program Two exceeds the aggregate

28  cap on the amount of credits that may be awarded under Program

29  Two, the premium tax credits that may be allowed to any one

30  certified investor under Program Two shall be allocated using

31  the following ratio:

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    Florida Senate - 2005                                  SB 1024
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 1  

 2                      A/B = X/>$150,000,000

 3  

 4  where the letter "A" represents the total amount of certified

 5  capital certified investors have agreed to invest in any one

 6  certified capital company under Program Two, the letter "B"

 7  represents the aggregate amount of certified capital that all

 8  certified investors have agreed to invest in all certified

 9  capital companies under Program Two, the letter "X" is the

10  numerator and represents the total amount of premium tax

11  credits and certified capital that may be allocated to a

12  certified capital company on a date determined by rule adopted

13  by the commission pursuant to subsection (16) (17), and $150

14  million is the denominator and represents the total amount of

15  premium tax credits and certified capital that may be

16  allocated to all certified investors under Program Two. Any

17  such premium tax credits are not first available for

18  utilization until annual filings are made in 2001 for calendar

19  year 2000 in the case of Program One, and the tax credits may

20  be used at a rate not to exceed 10 percent annually per

21  program.

22         (15)(a)  CONFIDENTIALITY OF INVESTIGATION AND REVIEW

23  INFORMATION.--Except as otherwise provided by this section,

24  any information relating to an investigation or office review

25  of a certified capital company, including any consumer

26  complaint, is confidential and exempt from the provisions of

27  s. 119.07(1) and s. 24(a), Art. I of the State Constitution

28  until the investigation or review is complete or ceases to be

29  active.  Such information shall remain confidential and exempt

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

31  the State Constitution after the investigation or review is

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    Florida Senate - 2005                                  SB 1024
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 1  complete or ceases to be active if the information is

 2  submitted to any law enforcement or administrative agency for

 3  further investigation, and shall remain confidential and

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

 5  I of the State Constitution until that agency's investigation

 6  is complete or ceases to be active. For purposes of this

 7  subsection, an investigation or review shall be considered

 8  "active" so long as the office, a law enforcement agency, or

 9  an administrative agency is proceeding with reasonable

10  dispatch and has a reasonable good faith belief that the

11  investigation may lead to the filing of an administrative,

12  civil, or criminal proceeding.  This section shall not be

13  construed to prohibit disclosure of information which is

14  required by law to be filed with the office and which, but for

15  the investigation, would otherwise be subject to s. 119.07(1).

16         (b)  Except as necessary to enforce the provisions of

17  this chapter, a consumer complaint or information relating to

18  an investigation or review shall remain confidential and

19  exempt from s. 119.07(1) after an investigation or review is

20  complete or ceases to be active to the extent disclosure

21  would:

22         1.  Reveal a trade secret as defined in s. 688.002 or

23  s. 812.081.

24         2.  Jeopardize the integrity of another active

25  investigation or review.

26         3.  Disclose the identity of a confidential source or

27  investigative techniques or procedures.

28         (c)  Nothing in this section shall be construed to

29  prohibit the office from providing information to any law

30  enforcement or administrative agency. Any law enforcement or

31  administrative agency receiving confidential information in

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    Florida Senate - 2005                                  SB 1024
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 1  connection with its official duties shall maintain the

 2  confidentiality of the information so long as it would

 3  otherwise be confidential.

 4         (d)  In the event office personnel are or have been

 5  involved in an investigation or review of such nature as to

 6  endanger their lives or physical safety or that of their

 7  families, the home addresses, telephone numbers, places of

 8  employment, and photographs of such personnel, together with

 9  the home addresses, telephone numbers, photographs, and places

10  of employment of spouses and children of such personnel and

11  the names and locations of schools and day care facilities

12  attended by the children of such personnel are confidential

13  and exempt from s. 119.07(1).

14         (e)  All information obtained by the office from any

15  person which is only made available to the office on a

16  confidential or similarly restricted basis shall be

17  confidential and exempt from s. 119.07(1).  This exemption

18  shall not be construed to prohibit disclosure of information

19  which is specifically required by law to be filed with the

20  office or which is otherwise subject to s. 119.07(1).

21         (d)(f)  If information subject to this subsection is

22  offered in evidence in any administrative, civil, or criminal

23  proceeding, the presiding officer may, in his or her

24  discretion, prevent the disclosure of information which would

25  be confidential pursuant to paragraph (b).

26         (e)(g)  A privilege against civil liability is granted

27  to a person with regard to information or evidence furnished

28  to the office, unless such person acts in bad faith or with

29  malice in providing such information or evidence.

30         (h)  This subsection is subject to the Open Government

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

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    Florida Senate - 2005                                  SB 1024
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 1  shall stand repealed on October 2, 2005, unless reviewed and

 2  saved from repeal through reenactment by the Legislature.

 3         (16)  CONFIDENTIALITY OF SOCIAL SECURITY NUMBERS.--The

 4  social security number of any customer of a certified capital

 5  company, complainant, or person associated with a certified

 6  capital company or qualified business, is exempt from s.

 7  119.07(1).  This subsection is subject to the Open Government

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

 9  shall stand repealed on October 2, 2005, unless reviewed and

10  saved from repeal through reenactment by the Legislature.

11         (16)(17)  Notwithstanding the limitations set forth in

12  paragraph (7)(a), in the first fiscal year in which the total

13  insurance premium tax collections as determined by the Revenue

14  Estimating Conference exceed collections for fiscal year

15  2000-2001 by more than the total amount of tax credits issued

16  pursuant to this section which were used by certified

17  investors in that year, the Office of Tourism, Trade, and

18  Economic Development may allocate to certified investors in

19  accordance with paragraph (7)(a) tax credits for Program Two.

20  The commission shall establish, by rule, a date and procedures

21  by which certified capital companies must file applications

22  for allocations of such additional premium tax credits, which

23  date shall be no later than 180 days from the date of

24  determination by the Revenue Estimating Conference. With

25  respect to new certified capital invested and premium tax

26  credits earned pursuant to this subsection, the schedule

27  specified in subparagraphs (5)(a)1.-4. is satisfied by

28  investments by December 31 of the 2nd, 3rd, 4th, and 5th

29  calendar year, respectively, after the date established by the

30  commission for applications of additional premium tax credits.

31  The commission shall adopt rules by which an entity not

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    Florida Senate - 2005                                  SB 1024
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 1  already certified as a certified capital company may apply for

 2  certification as a certified capital company for participation

 3  in this additional allocation. The insurance premium tax

 4  credit authorized by Program Two may not be used by certified

 5  investors until the annual return due March 1, 2004, and may

 6  be used on all subsequent returns and estimated payments;

 7  however, notwithstanding the provisions of s. 624.5092(2)(b),

 8  the installments of taxes due and payable on April 15, 2004,

 9  and June 15, 2004, shall be based on the net tax due in 2003

10  not taking into account credits granted pursuant to this

11  section for Program Two.

12         Section 2.  This act shall take effect upon becoming a

13  law.

14  

15            *****************************************

16                          SENATE SUMMARY

17    Revises certain exemptions from the public-records law
      provided for specified information relating to an
18    investigation or review of a certified capital company by
      the Office of Financial Regulation of the Financial
19    Services Commission. Removes the repeal of certain
      exemptions scheduled on October 2, 2005, under the Open
20    Government Sunset Review Act. (See bill for details.)

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