Senate Bill sb0702
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Florida Senate - 2007 SB 702
By Senator Siplin
19-272-07
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 duties of the
11 Financial Services Commission; requiring the
12 commission to adopt rules, in consultation with
13 the Department of Community Affairs and the
14 Florida Housing Finance Corporation, regarding
15 community reinvestment plans; authorizing a
16 business to list its community reinvestment
17 plan on its website; requiring the Financial
18 Service Commission, the Department of Community
19 Affairs, the Office of Tourism, Trade, and
20 Economic Development, and the Florida Housing
21 Finance Corporation to prepare a strategic plan
22 relating to access to financial capital in
23 certain areas of the state; providing
24 requirements for the strategic plan; requiring
25 the commission to create and maintain a website
26 that includes certain public information
27 concerning financial matters; providing an
28 effective date.
29
30 Be It Enacted by the Legislature of the State of Florida:
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Florida Senate - 2007 SB 702
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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 s. 220.62, Florida Statutes, which is subject to
7 the tax imposed by chapter 220, Florida Statutes.
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
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Florida Senate - 2007 SB 702
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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 under this section is not
31 fully used in any one year, the unused amount may be carried
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Florida Senate - 2007 SB 702
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1 forward for a period not to exceed 5 years. The carryover
2 credit may be used in a subsequent year when the tax imposed
3 by chapter 220, Florida Statutes, for such year exceeds the
4 credit for such year under this section after applying the
5 other credits and unused credit carryovers in the order
6 provided in s. 220.02(8), Florida Statutes. The amount of
7 credit taken under this section in any one year, however, may
8 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.
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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 concerning 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;
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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.
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Florida Senate - 2007 SB 702
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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.
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