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:
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Florida Senate - 2005 SB 2320
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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
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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.
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Florida Senate - 2005 SB 2320
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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
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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
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1 Section 3. This act shall take effect upon becoming a
2 law.
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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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