Senate Bill sb1646c1
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Florida Senate - 2007 CS for SB 1646
By the Committee on Health Policy; and Senators Gaetz, Fasano,
Aronberg, Bullard, Peaden, Baker, Alexander, Deutch,
Haridopolos, Wilson, Dockery, Atwater, Lynn and Webster
587-2264-07
1 A bill to be entitled
2 An act relating to the corporate income tax;
3 amending s. 220.02, F.S.; revising the list of
4 application of corporate income tax credits;
5 amending s. 220.13, F.S.; including a tax
6 credit within the definition of the term
7 "adjusted federal income"; creating s.
8 220.1875, F.S.; providing a purpose; defining
9 terms; providing for a corporate income tax
10 credit for contributions for medical care for
11 indigent persons; providing for contributions
12 to the Health Care Clinic Indigent Care Trust
13 Fund for certain purposes; providing
14 requirements, procedures, and limitations;
15 providing an annual aggregate limit for the
16 fund; providing for disbursements from the fund
17 to certain health care clinics; providing
18 requirements and limitations; providing for
19 ineligibility under certain circumstances;
20 providing for administration by a board of
21 directors; providing for appointing board
22 members; providing for terms and expenses;
23 providing powers and duties of the board;
24 requiring the board to report annually to the
25 Governor and Legislature; providing an
26 application; requiring the Department of
27 Revenue to adopt rules; providing a contingent
28 effective date.
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30 Be It Enacted by the Legislature of the State of Florida:
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1 Section 1. Subsection (8) of section 220.02, Florida
2 Statutes, is amended to read:
3 220.02 Legislative intent.--
4 (8) It is the intent of the Legislature that credits
5 against either the corporate income tax or the franchise tax
6 be applied in the following order: those enumerated in s.
7 631.828, those enumerated in s. 220.191, those enumerated in
8 s. 220.181, those enumerated in s. 220.183, those enumerated
9 in s. 220.182, those enumerated in s. 220.1895, those
10 enumerated in s. 221.02, those enumerated in s. 220.184, those
11 enumerated in s. 220.186, those enumerated in s. 220.1845,
12 those enumerated in s. 220.19, those enumerated in s. 220.185,
13 those enumerated in s. 220.187, those enumerated in s.
14 220.192, and those enumerated in s. 220.193, and those
15 enumerated in s. 220.1875.
16 Section 2. Paragraph (a) of subsection (1) of section
17 220.13, Florida Statutes, is amended to read:
18 220.13 "Adjusted federal income" defined.--
19 (1) The term "adjusted federal income" means an amount
20 equal to the taxpayer's taxable income as defined in
21 subsection (2), or such taxable income of more than one
22 taxpayer as provided in s. 220.131, for the taxable year,
23 adjusted as follows:
24 (a) Additions.--There shall be added to such taxable
25 income:
26 1. The amount of any tax upon or measured by income,
27 excluding taxes based on gross receipts or revenues, paid or
28 accrued as a liability to the District of Columbia or any
29 state of the United States which is deductible from gross
30 income in the computation of taxable income for the taxable
31 year.
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1 2. The amount of interest which is excluded from
2 taxable income under s. 103(a) of the Internal Revenue Code or
3 any other federal law, less the associated expenses disallowed
4 in the computation of taxable income under s. 265 of the
5 Internal Revenue Code or any other law, excluding 60 percent
6 of any amounts included in alternative minimum taxable income,
7 as defined in s. 55(b)(2) of the Internal Revenue Code, if the
8 taxpayer pays tax under s. 220.11(3).
9 3. In the case of a regulated investment company or
10 real estate investment trust, an amount equal to the excess of
11 the net long-term capital gain for the taxable year over the
12 amount of the capital gain dividends attributable to the
13 taxable year.
14 4. That portion of the wages or salaries paid or
15 incurred for the taxable year which is equal to the amount of
16 the credit allowable for the taxable year under s. 220.181.
17 This subparagraph shall expire on the date specified in s.
18 290.016 for the expiration of the Florida Enterprise Zone Act.
19 5. That portion of the ad valorem school taxes paid or
20 incurred for the taxable year which is equal to the amount of
21 the credit allowable for the taxable year under s. 220.182.
22 This subparagraph shall expire on the date specified in s.
23 290.016 for the expiration of the Florida Enterprise Zone Act.
24 6. The amount of emergency excise tax paid or accrued
25 as a liability to this state under chapter 221 which tax is
26 deductible from gross income in the computation of taxable
27 income for the taxable year.
28 7. That portion of assessments to fund a guaranty
29 association incurred for the taxable year which is equal to
30 the amount of the credit allowable for the taxable year.
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1 8. In the case of a nonprofit corporation which holds
2 a pari-mutuel permit and which is exempt from federal income
3 tax as a farmers' cooperative, an amount equal to the excess
4 of the gross income attributable to the pari-mutuel operations
5 over the attributable expenses for the taxable year.
6 9. The amount taken as a credit for the taxable year
7 under s. 220.1895.
8 10. Up to nine percent of the eligible basis of any
9 designated project which is equal to the credit allowable for
10 the taxable year under s. 220.185.
11 11. The amount taken as a credit for the taxable year
12 under s. 220.187.
13 12. The amount taken as a credit for the taxable year
14 under s. 220.192.
15 13. The amount taken as a credit for the taxable year
16 under s. 220.193.
17 14. The amount taken as a credit for the taxable year
18 under s. 220.1875.
19 Section 3. Section 220.1875, Florida Statutes, is
20 created to read:
21 220.1875 Credits for contributions to health care
22 clinics for medical care for indigent persons.--
23 (1) PURPOSE.--The purpose of this section is to permit
24 corporations a credit against corporate income taxes by making
25 contributions to a fund that distributes grants to eligible
26 health care clinics so that the clinics can provide medical
27 care for indigent persons and to provide fiscal relief to
28 eligible health care clinics that provide a disproportionate
29 share of medical care to indigent persons.
30 (2) DEFINITIONS.--For purposes of this section, the
31 term:
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1 (a) "Board" means the board of directors of the fund.
2 (b) "Charity care" means medical care provided to a
3 person who has insufficient resources or assets to pay for
4 medical care without using resources that are required to meet
5 the person's basic need for food, shelter, and clothing. A
6 person is not eligible for charity care if the person's family
7 income, for the 12 months preceding the determination of his
8 or her financial status by the health care clinic, exceeds 200
9 percent of the federal poverty guidelines.
10 (c) "Department" means the Department of Revenue.
11 (d) "Eligible health care clinic" means a charitable
12 organization that is:
13 1. A federally qualified health center, as defined in
14 42 U.S.C. s. 1395x(aa)(4), or a federally qualified health
15 center "look-alike";
16 2. An entity that is exempt from the federal income
17 tax under s. 501(c)(3) of the Internal Revenue Code and that:
18 a. Provides health care services in a community clinic
19 that is not owned or affiliated with a hospital licensed under
20 chapter 395;
21 b. In the most recently completed calendar year,
22 provided charity care in an aggregate amount equal to 50
23 percent of its total revenues derived from providing health
24 care services or that received at least 50 percent of its
25 patient visits from charity care patients;
26 c. Maintains a patient financial responsibility policy
27 under which the patient's charity care status is confirmed;
28 and
29 d. Provides information establishing that the
30 applicant maintains a quality assurance and improvement
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1 process that includes an annual review establishing that
2 evidence-based medical practices are used; or
3 3. A county health department located in a county
4 having a total population of fewer than 300,000 persons.
5 (e) "Fiscal year" means the state fiscal year.
6 (f) "Fund" means the Health Care Clinic Indigent Care
7 Trust Fund created in s. 220.1876.
8 (3) CONTRIBUTIONS TO THE FUND; TAX CREDIT.--
9 (a) A corporate taxpayer may make contributions to the
10 fund at any time by submitting the contribution to the
11 department for deposit into the fund, thereby becoming
12 eligible for credits against the corporation's state corporate
13 income tax liabilities as provided in paragraph (b). The
14 department shall account for the contributions by each
15 corporate taxpayer and may require the filing of a certificate
16 of contribution that the corporate taxpayer must submit with
17 its corporate income tax return when claiming credit for
18 contributions.
19 (b) A credit of 100 percent of an eligible
20 contribution is allowed against any tax due for a taxable year
21 under this chapter. However, the credit may not exceed 75
22 percent of the tax due under this chapter for the taxable
23 year, after the application of any other allowable credits by
24 the taxpayer.
25 (c) If the credit granted under this section is not
26 fully used in a single year because of insufficient tax
27 liability on the part of the corporation, the unused amount
28 may be carried forward for a period not to exceed 3 years.
29 (d) A taxpayer who files a consolidated return under
30 s. 220.131(1) as a member of an affiliated group may be
31 allowed the credit on a consolidated return basis; however,
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1 the total credit taken by the affiliated group is subject to
2 the limitation set forth in paragraph (b).
3 (4) FUND AGGREGATE LIMIT.--The fund is subject to an
4 annual aggregate limit of $50 million. Contributions by
5 corporate taxpayers to the fund shall be accepted in the order
6 in which received until the annual limit is reached.
7 (5) DISBURSEMENTS.--
8 (a) An eligible health care clinic may apply to the
9 board for approval of disbursement of moneys from the fund for
10 operations, personnel, and capital improvements. Such
11 applications must be accepted by the board semiannually on
12 June 1 and December 1 of each calendar year.
13 (b) The board shall approve qualified applications and
14 request the department to make disbursements to eligible
15 health care clinics to the extent funds are available. The
16 board shall determine disbursements on the basis of need, the
17 date of the disbursement request, and the applicant's ability
18 to obtain alternative funding. The board shall approve
19 disbursements to applicants who provide a system of care for
20 the uninsured or underinsured in the community served by the
21 applicant. The board shall ensure that funds are distributed
22 on a geographically equitable basis throughout the state. The
23 board shall meet bimonthly basis for this purpose or may meet
24 via teleconference if meeting in person is impracticable. If
25 the board approves a disbursement to a qualified applicant,
26 the board shall transmit a disbursement request to the
27 department, which shall distribute the requested amount from
28 the fund to the applicant approved for disbursement by the
29 board. A single eligible health care clinic may not receive
30 more than $2.5 million in total assistance from the fund in a
31 given fiscal year. Applications received at the end of the
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1 fiscal year shall be carried over and determined in the next
2 fiscal year.
3 (c) An eligible health care clinic that is owned or
4 operated in any manner in affiliation with a corporate
5 taxpayer eligible for a tax credit as provided in this section
6 is not eligible to receive any disbursements from the fund.
7 (6) BOARD MEMBERS AND APPOINTMENT; POWERS AND
8 DUTIES.--
9 (a) The board shall consist of nine members. Three
10 members shall be appointed by the Governor, three members
11 shall be appointed by the President of the Senate, and three
12 members shall be appointed by the Speaker of the House of
13 Representatives. Each member must have relevant experience in
14 the delivery of health care to indigent persons. Board members
15 shall elect a chair at the first organizational meeting and
16 shall elect a new chair annually. A board member may be
17 reelected as chair at the discretion of the board.
18 (b) The term of a board member shall be 2 years, but
19 the member may serve a second consecutive term if reappointed.
20 For initial appointees, three members shall be appointed for
21 1-year terms, three members shall be appointed for 2-year
22 terms, and three members shall be appointed for 3-year terms.
23 Each of the appointing officials shall designate members for
24 1-year, 2-year, or 3-year terms. Members appointed to an
25 initial 3-year term are eligible for a second 2-year term if
26 reappointed.
27 (c) Board members shall serve without compensation,
28 but are entitled to receive reimbursement for per diem and
29 travel expenses in accordance with s. 112.061, while in the
30 performance of their duties.
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1 (d) The board may hire an executive director and other
2 personnel, whose salaries shall be paid from the fund.
3 (e) A board member may not have an ownership interest
4 in a health care clinic or be a member of the board of
5 directors or an officer of a health care clinic.
6 (f) The board shall receive and evaluate applications
7 from eligible health care clinics for the disbursement of
8 moneys from the fund as provided by this section.
9 (g) By December 31, 2008, the board shall submit a
10 report to the Governor and the Legislature describing the
11 implementation of this section. Thereafter, the board shall
12 provide to the Governor and Legislature an annual report
13 summarizing the following:
14 1. The total annual contributions to the fund.
15 2. The annual disbursement of funds to eligible health
16 care clinics, identifying each clinic and the amount disbursed
17 to the clinic.
18 (7) RULEMAKING.--The department shall adopt rules
19 pursuant to ss. 120.536(1) and 120.54 which are necessary to
20 administer this section, including, but not limited to, rules
21 establishing application forms and procedures for
22 contributions by corporate taxpayers to the fund, granting the
23 tax credit, and approving applications for disbursements from
24 the fund.
25 Section 4. This act shall take effect July 1, 2007,
26 and apply to tax years beginning on or after January 1, 2008,
27 only if SB 1654 or similar legislation is adopted in the same
28 legislative session or an extension thereof and becomes law.
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 Senate Bill 1646
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4 The committee substitute adds the amount taken as a credit for
the taxable year under s. 220.1875, F.S., as an addition for
5 purposes of the corporate taxpayer's adjusted federal income.
The committee substitute changes the definitions for charity
6 care and eligible health care clinic and defines fiscal year.
A person is not eligible for charity care if the person's
7 family income, for the 12 months preceding the determination,
exceeds 200 percent of the federal poverty guidelines. The
8 exemption for health care charges exceeding 25 percent of
family income is deleted. Not-for-profit health care clinics
9 meeting certain criteria and county health departments in
counties with fewer than 300,000 persons, that may not be
10 federally qualified health care centers are added to the list
of eligible health care clinics.
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The committee substitute allows the department to require a
12 certificate of contribution to be filed. It deletes the
requirement for the department to hold contributions in an
13 escrow account on days when the fund is at its limit. The
committee substitute deletes the first-come, first-served
14 requirement and gives the board criteria for deciding how the
funds will be disbursed. An eligible health care clinic that
15 is owned or operated or affiliated with a corporate tax payer
receiving benefits under this section is not eligible to
16 receive disbursements. The first annual report will be
submitted by December 31, 2008.
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