Senate Bill sb0332

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2006                                   SB 332

    By Senator Siplin





    19-198-06

  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 a website that includes certain public

27         information concerning financial matters;

28         providing an effective date.

29  

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

31  

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2006                                   SB 332
    19-198-06




 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 s. 220.62, Florida Statutes, subject to the tax

 7  imposed by chapter 220.

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

 9  strategic plan developed and implemented by a business under

10  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; professional

21  service corporations under chapter 621, Florida Statutes;

22  foreign unincorporated associations under chapter 622, Florida

23  Statutes; private school corporations under chapter 623,

24  Florida Statutes; foreign corporations not for profit which

25  are carrying on their activities in this state; and all other

26  organizations, associations, legal entities, and artificial

27  persons that are created by or pursuant to the laws of this

28  state, the United States, or any other state, territory,

29  possession, or jurisdiction. The term does not include

30  proprietorships, even if using a fictitious name; partnerships

31  of any type, as such; limited liability companies that are

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2006                                   SB 332
    19-198-06




 1  taxable as partnerships for federal income tax purposes; state

 2  or public fairs or expositions under chapter 616, Florida

 3  Statutes; estates of decedents or incompetents; testamentary

 4  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 PLAN.--A business, in

15  accordance with rules adopted by the commission under

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

17  reinvestment plan in order to be eligible to receive a tax

18  credit as provided in subsection (4). A business's plan must

19  include the business's specific targets for the expenditure of

20  funds for community reinvestment purposes, including:

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

22  or underserved areas in the state; and

23         (b)  Investing in or with nonprofit lending

24  institutions for lending activities in underserved areas or

25  with members of a targeted population in the state.

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

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

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

29  reinvestment plan as certified by rule of the commission.

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

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

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2006                                   SB 332
    19-198-06




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

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

 3  imposed by chapter 220, Florida Statutes, for such year

 4  exceeds the credit for such year under this section after

 5  applying the other credits and unused credit carryovers in the

 6  order provided in s. 220.02(8), Florida Statutes. The amount

 7  of credit taken under this section in any one year, however,

 8  may not exceed $25,000, or, if no fewer than 20 percent of the

 9  employees of the business are residents of an enterprise zone,

10  excluding temporary employees, the amount may not exceed

11  $50,000.

12         (5)  DUTIES OF THE FINANCIAL SERVICES COMMISSION;

13  RULEMAKING AUTHORITY.--

14         (a)  The commission, in consultation with the

15  Department of Community Affairs and the Office of Tourism,

16  Trade, and Economic Development, shall assist businesses in

17  identifying and setting community reinvestment targets for the

18  submission of community reinvestment plans.

19         (b)  The commission shall adopt rules to administer

20  this section, including rules that:

21         1.  Provide businesses with specific guidelines and

22  procedures for the adoption and submission to the commission

23  of community reinvestment plans, including a reasonable

24  timeframe for implementation of the plan; and

25         2.  Create a certification process that meets each

26  target set under the businesses' respective plans.

27         (c)  The commission may consult with and request

28  information relevant to this section from the Department of

29  Community Affairs and the Florida Housing Finance Corporation.

30  In developing rules under this section, the commission shall

31  consider any information obtained under this subsection.

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2006                                   SB 332
    19-198-06




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

 2  community reinvestment plan on any Internet website maintained

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

 4  readily accessible to and understandable by the public. The

 5  business shall notify the commission if it posts a plan.

 6         (b)  The commission shall maintain on its Internet

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

 8  that is posted on the Internet.

 9         Section 2.  Access to financial capital.--

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

11  CONCERNING ACCESS TO FINANCIAL CAPITAL.--The Financial

12  Services Commission that oversees the Office of Financial

13  Regulation within the Department of Financial Services, the

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

15  and Economic Development, and the Florida Housing Finance

16  Corporation shall prepare a biennial strategic plan relating

17  to access to financial capital in unserved and underserved

18  areas of the state.

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

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

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

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

23  of the House of Representatives; and

24         (b)  Make recommendations on actions that the

25  Legislature may take to improve access to capital in unserved

26  and underserved areas of the state.

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

28         (a)  Define and identify unserved and underserved areas

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

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

31  other relevant financial capital issues;

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2006                                   SB 332
    19-198-06




 1         (b)  Quantify community investment and lending

 2  resources available by location in the state;

 3         (c)  Develop specific targets and plans for increasing

 4  investment in unserved and underserved areas; and

 5         (d)  Enlist private financial institutions to use the

 6  strategic plan to set institutional targets.

 7         (4)  FINANCIAL CAPITAL INFORMATION AVAILABLE ON

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

 9  Internet website through the state's on-line government portal

10  or any successor to that portal which includes:

11         (a)  A list of traditional and nontraditional sources

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

13  borrower's financial characteristics;

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

15  business plan;

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

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

18  financial institution;

19         (e)  Information regarding interest rates available in

20  the state;

21         (f)  Information pertaining to the cost of loans

22  available to borrowers of varied risk levels in the state;

23         (g)  Information concerning how to compare mortgage

24  loans available in the state;

25         (h)  Information regarding lending practices of

26  specific businesses in the state; and

27         (i)  Links to relevant consumer financial websites.

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

29  law.

30  

31  

                                  6

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2006                                   SB 332
    19-198-06




 1            *****************************************

 2                          SENATE SUMMARY

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

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  7

CODING: Words stricken are deletions; words underlined are additions.