Florida Senate - 2009 COMMITTEE AMENDMENT Bill No. SB 1644 Barcode 118358 LEGISLATIVE ACTION Senate . House Comm: FAV . 03/25/2009 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Commerce (Gelber) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Short title.—This act may be cited as the 6 “Micro-Targeted Technology Commercialization Act.” 7 Section 2. Legislative purpose.— The purpose of this act is 8 to promote the commercialization of certain technologies by 9 startup and early stage Florida companies, and to create high 10 wage jobs in these industry sectors. The act creates two 11 financial mechanisms to promote commercialization efforts: a net 12 operating loss credit transfer program and a commercialization 13 grant program. 14 Section 3. Paragraph (z) is added to subsection (8) of 15 section 213.053, Florida Statutes, to read: 16 213.053 Confidentiality and information sharing.— 17 (8) Notwithstanding any other provision of this section, 18 the department may provide: 19 (z) Information relative to tax credits taken under s. 20 220.194 to the Office of Tourism, Trade, and Economic 21 Development. 22 23 Disclosure of information under this subsection shall be 24 pursuant to a written agreement between the executive director 25 and the agency. Such agencies, governmental or nongovernmental, 26 shall be bound by the same requirements of confidentiality as 27 the Department of Revenue. Breach of confidentiality is a 28 misdemeanor of the first degree, punishable as provided by s. 29 775.082 or s. 775.083. 30 Section 4. Subsection (8) of section 220.02, Florida 31 Statutes, is amended to read: 32 220.02 Legislative intent.— 33 (8) It is the intent of the Legislature that credits 34 against either the corporate income tax or the franchise tax be 35 applied in the following order: those enumerated in s. 631.828, 36 those enumerated in s. 220.191, those enumerated in s. 220.181, 37 those enumerated in s. 220.183, those enumerated in s. 220.182, 38 those enumerated in s. 220.1895, those enumerated in s. 221.02, 39 those enumerated in s. 220.184, those enumerated in s. 220.186, 40 those enumerated in s. 220.1845, those enumerated in s. 220.19, 41 those enumerated in s. 220.185, those enumerated in s. 220.187, 42 those enumerated in s. 220.192,andthose enumerated in s. 43 220.193, and those enumerated in s. 220.194. 44 Section 5. Paragraph (b) of subsection (1) of section 45 220.13, Florida Statutes, is amended to read: 46 220.13 “Adjusted federal income” defined.— 47 (1) The term “adjusted federal income” means an amount 48 equal to the taxpayer’s taxable income as defined in subsection 49 (2), or such taxable income of more than one taxpayer as 50 provided in s. 220.131, for the taxable year, adjusted as 51 follows: 52 (b) Subtractions.— 53 1. There shall be subtracted from such taxable income: 54 a. The net operating loss deduction allowable for federal 55 income tax purposes under s. 172 of the Internal Revenue Code 56 for the taxable year, 57 b. The net capital loss allowable for federal income tax 58 purposes under s. 1212 of the Internal Revenue Code for the 59 taxable year, 60 c. The excess charitable contribution deduction allowable 61 for federal income tax purposes under s. 170(d)(2) of the 62 Internal Revenue Code for the taxable year, and 63 d. The excess contributions deductions allowable for 64 federal income tax purposes under s. 404 of the Internal Revenue 65 Code for the taxable year, except that any net operating loss 66 transferred pursuant to s. 220.194 may not be deducted by the 67 seller. 68 69 However, a net operating loss and a capital loss shall 70 never be carried back as a deduction to a prior taxable year, 71 but all deductions attributable to such losses shall be deemed 72 net operating loss carryovers and capital loss carryovers, 73 respectively, and treated in the same manner, to the same 74 extent, and for the same time periods as are prescribed for such 75 carryovers in ss. 172 and 1212, respectively, of the Internal 76 Revenue Code. 77 2. There shall be subtracted from such taxable income any 78 amount to the extent included therein the following: 79 a. Dividends treated as received from sources without the 80 United States, as determined under s. 862 of the Internal 81 Revenue Code. 82 b. All amounts included in taxable income under s. 78 or s. 83 951 of the Internal Revenue Code. 84 85 However, as to any amount subtracted under this 86 subparagraph, there shall be added to such taxable income all 87 expenses deducted on the taxpayer’s return for the taxable year 88 which are attributable, directly or indirectly, to such 89 subtracted amount. Further, no amount shall be subtracted with 90 respect to dividends paid or deemed paid by a Domestic 91 International Sales Corporation. 92 3. In computing “adjusted federal income” for taxable years 93 beginning after December 31, 1976, there shall be allowed as a 94 deduction the amount of wages and salaries paid or incurred 95 within this state for the taxable year for which no deduction is 96 allowed pursuant to s. 280C(a) of the Internal Revenue Code 97 (relating to credit for employment of certain new employees). 98 4. There shall be subtracted from such taxable income any 99 amount of nonbusiness income included therein, including 100 payments received for a certified tax credit pursuant to s. 101 220.194. 102 5. There shall be subtracted any amount of taxes of foreign 103 countries allowable as credits for taxable years beginning on or 104 after September 1, 1985, under s. 901 of the Internal Revenue 105 Code to any corporation which derived less than 20 percent of 106 its gross income or loss for its taxable year ended in 1984 from 107 sources within the United States, as described in s. 108 861(a)(2)(A) of the Internal Revenue Code, not including credits 109 allowed under ss. 902 and 960 of the Internal Revenue Code, 110 withholding taxes on dividends within the meaning of sub 111 subparagraph 2.a., and withholding taxes on royalties, interest, 112 technical service fees, and capital gains. 113 6. Notwithstanding any other provision of this code, except 114 with respect to amounts subtracted pursuant to subparagraphs 1. 115 and 3., any increment of any apportionment factor which is 116 directly related to an increment of gross receipts or income 117 which is deducted, subtracted, or otherwise excluded in 118 determining adjusted federal income shall be excluded from both 119 the numerator and denominator of such apportionment factor. 120 Further, all valuations made for apportionment factor purposes 121 shall be made on a basis consistent with the taxpayer’s method 122 of accounting for federal income tax purposes. 123 Section 6. Subsection (5) is added to section 220.16, 124 Florida Statutes, to read: 125 220.16 Allocation of nonbusiness income.—Nonbusiness income 126 shall be allocated as follows: 127 (5) The amount of financial assistance received in exchange 128 for transferring a net operating loss as authorized by s. 129 220.194 is allocable to this state. 130 Section 7. Section 220.194, Florida Statutes, is created to 131 read: 132 220.194 Micro-Targeted Technology Commercialization Credit 133 Transfer Program; transfer of net loss carryforward as a 134 certified credit.— 135 (1) PURPOSE; GOALS AND OBJECTIVES.—It is the intent of the 136 Legislature that the Micro-Targeted Technology Commercialization 137 Credit Transfer Program act as a catalyst for eligible companies 138 to accelerate their revenue and job growth and their market 139 penetration by monetizing their net operating losses into 140 transferable credits. The program’s objectives include: 141 (a) Accelerating the entry of new technology-based products 142 into the marketplace; 143 (b) Producing additional technology-based jobs for this 144 state; 145 (c) Accelerating commercialization of micro-targeted 146 technologies in the biomedical and technical fields; and 147 (d) Encouraging the growth of high-quality, high-wage 148 biomedical and technology firms in this state. 149 (2) DEFINITIONS.—As used in ss. 220.194 and 220.195, the 150 term: 151 (a) “Certified credit” means the product of the net 152 operating loss generated in the current year apportioned to 153 Florida, multiplied by the corporate income tax rate imposed 154 during the year in which the loss occurred. 155 (b) “Certified micro-targeted technology company” means a 156 business entity that is registered with the Secretary of State, 157 is currently operating in this state, and is certified by the 158 office to trade certified credits based on their net operating 159 losses, pursuant to this section. 160 (c) “Department” means the Department of Revenue. 161 (d) “Institute” means the Institute for the 162 Commercialization of Public Research. 163 (e) “Micro-targeted technology” means individual 164 components, technology, or processes that are crucial to the 165 development of larger or more complex biomedical or 166 technological devices, processes, or information systems. 167 (f) “Office” means the Office of Tourism, Trade, and 168 Economic Development. 169 (3) THE INSTITUTE FOR THE COMMERCIALIZATION OF PUBLIC 170 RESEARCH.—The Institute for the Commercialization of Public 171 Research or other Florida research-based consortium shall 172 identify examples of micro-targeted technology and compile a 173 list that is updated annually to add new technologies or delete 174 those technologies that are no longer applicable. The office 175 shall adopt this list as a rule. 176 (4) QUALIFICATIONS FOR CERTIFICATION.— A company seeking to 177 transfer a certified credit shall be certified as a qualified 178 micro-targeted technology company by the office if it timely 179 files a completed application and meets the requirements of this 180 subsection. For purposes of this subsection, all conditions in 181 paragraphs (a) through (g) must be met no later than the date 182 the application is filed with the office. All other requirements 183 in this subsection must be satisfied before the company received 184 certified credits. In order to be certified, a micro-targeted 185 technology company shall demonstrate that: 186 (a) It is registered with the Secretary of State to operate 187 in this state, and is operating in Florida. 188 (b) It is primarily engaged in developing, manufacturing, 189 producing, or providing micro-targeted technology for commercial 190 or public purposes. 191 (c) It has fewer than 100 full-time, worldwide employees, 192 including full-time employees leased to the applicant, of which 193 at least 75 percent work full time in this state at the time the 194 transfer of certified credits is first allowed. 195 (d) It has been audited by an independent certified public 196 accountant and: 197 1. The company has not had positive net income in any of 198 the 2 previous years of ongoing operations; 199 2. The company has reported a net operating loss in any of 200 the 2 previous years of operation; and 201 3. The company is not at least 50 percent owned or 202 controlled, directly or indirectly, by another corporation that 203 has demonstrated positive net income in any of the 2 previous 204 years of ongoing operations, or is not part of a consolidated 205 group of affiliated corporations, as filed for federal income 206 tax purposes, which in the aggregate demonstrated positive net 207 income in any of the 2 previous years of ongoing operations. 208 (e) The company has at least one active application for a 209 patent under 35 U.S.C. s. 111(a) on file with the United States 210 Patent and Trademark Office. 211 (f) The company has received research grants from 212 governmental entities, foundations, or other private entities, 213 or received financial assistance from investors. 214 (g) The company has an established business plan that 215 describes its commercialization strategy, a business-development 216 plan that includes revenue projections and a strategy for 217 becoming profitable, and a timeline for development which 218 addresses revenue growth and job creation in this state. 219 (h) The company can certify that: 220 1. It will not transfer a certified credit in exchange for 221 private financial assistance in an amount that is less than 75 222 percent of the certified credit; 223 2. All proceeds from the transfer will be expended to 224 support the operation or expansion of the company’s business 225 activity in this state; and 226 3. Upon transfer of a certified credit, it shall notify the 227 office of the amount within 30 days after each certified credit 228 is transferred, the amount of the financial compensation for the 229 credit received, and the identity of the purchaser of the 230 certified credit. 231 (5) APPLICATION FOR CERTIFICATION.— 232 (a) A completed application must be filed with the office 233 on or after 2 p.m., on the first business day of July commencing 234 in 2009. The office may investigate the qualifications of each 235 company applicant and may require by rule the applicant to 236 provide such evidence of its qualification as is necessary to 237 assure compliance with the requirements of this section, 238 including, but not limited to, the state corporate income tax 239 return supporting the request for certification of a certified 240 credit, audited financial statements, federal tax returns, and 241 state and federal employment filings. 242 (b) The office shall require a nonrefundable application 243 fee of $100 per application submitted. The department shall 244 cooperate with the office in its review of the applications. 245 (c) The office shall grant or deny an application in full 246 or in part within 90 days after receiving a completed 247 application containing the necessary information, including 248 payment of the application fee. If the office denies any part of 249 the application, it shall inform the applicant of the grounds 250 for the denial. 251 (d) This section does not create a presumption that a 252 company applicant will be approved by the office to transfer its 253 certified credits. However, the office may issue a nonbinding 254 opinion letter, upon the request of a prospective applicant, as 255 to its eligibility and the potential amount of certified credits 256 available. 257 (6) CALCULATION OF CERTIFIED CREDIT TRANSFER AMOUNT AND 258 LIMITATIONS.— When submitting an application for certification, 259 a company shall state the amount of the net operating loss, 260 including any net operating loss carryover, it requests to be 261 transferred as a certified credit. To the extent allowed as a 262 deduction in this state, a reported net operating loss not 263 otherwise taken may be certified by the office for transfer by a 264 certified micro-targeted technology company in exchange for 265 private financial assistance from a purchaser as follows: 266 (a) The net operating loss shall be transferred as a 267 certified credit. 268 (b) The maximum lifetime certified credits that a micro 269 targeted technology company may be certified to transfer may not 270 exceed $1 million. 271 (c) Once the office has certified the transfer of total 272 certified credits that may be claimed during a state fiscal year 273 in a cumulative amount of $3 million, the office may not approve 274 the transfer of any additional credits that may be taken in that 275 state fiscal year. 276 (d) The certified micro-targeted technology company is 277 liable if, after a transfer, the net operating loss is adjusted 278 by amendment or as a result of any other recomputation or 279 redetermination of federal or Florida taxable income or loss. 280 The certified micro-targeted technology company is also liable 281 for a penalty equal to the amount of the credit transferred, 282 reduced in proportion to the amount of the net operating loss 283 certified for transfer over the amount of the certified net 284 operating loss disallowed. 285 (e) The applicant and its successors shall maintain all 286 records necessary to support the reported amount of certified 287 credits. 288 (7) PURCHASE OF TRANSFERRED CERTIFIED CREDITS.— 289 (a) The certified credit must be reported as a credit 290 against tax due by the unaffiliated corporate purchaser on the 291 next tax return due to be filed by the purchaser, but in no case 292 may it be reported later than 1 year after the date of transfer. 293 (b) In the event the certified credit is larger than the 294 amount owed the state on the tax return for the time period in 295 which the credit is claimed, after applying the other credits 296 and unused credit carryovers in the order provided in s. 297 220.02(8), the amount of the credit for that time period shall 298 be the amount owed the state on that tax return. Unused 299 certified credit amounts remaining may not be carried forward. 300 (c) The purchaser of a certified credit amount may not 301 further sell, or otherwise transfer, the certified credit 302 amount. 303 (d) It is the responsibility of the certified micro 304 targeted technology company that transferred the certified 305 credit amount to notify the office, within 30 days after 306 transfer, of the amount of each certified credit transferred, 307 the amount of the financial assistance received, and the 308 identity of the purchaser of the certified credit. The office 309 shall certify to the department the same information within 14 310 working days. 311 (8) REPORTING REQUIREMENT.— Each company that is certified 312 to transfer its certified credit must provide the office with an 313 annual report on its development covering the year after it has 314 received funds from transferring its certified credits. The 315 report must include the company’s commercialization strategy; 316 business development plan; timeline for development; actual 317 revenue and revenue projections, both total and within Florida 318 only; and actual employment and employment projections, both 319 total and within Florida only. The report is due January 3 each 320 applicable year. 321 (9) RULEMAKING AUTHORITY.— 322 (a) The office shall adopt rules pursuant to ss. 120.536(1) 323 and 120.54 to administer this section. The rules must establish 324 the criteria for qualified technology research and experimental 325 development, production, or provision of technology for 326 commercial or public purposes; the format of application forms; 327 and the procedures to implement the program. 328 (b) The department may adopt rules pursuant to ss. 329 120.536(1) and 120.54 to administer this section. 330 Section 8. Section 288.95, Florida Statutes, is created to 331 read: 332 288.95 Micro-Targeted Technology Commercialization 333 Assistance Grant Program.— 334 (1) INTENT; GOALS AND OBJECTIVES; CREATION OF PROGRAM.— 335 (a) It is the intent of the Legislature that the Micro 336 Targeted Technology Commercialization Assistance Grant Program 337 act as a catalyst for eligible startup companies to accelerate 338 their growth and market penetration using state grant funds to 339 help pay certain operating expenditures. 340 (b) The grant program’s objectives include: 341 1. Accelerating the entry of new technology-based products 342 into the marketplace; 343 2. Producing additional technology-based jobs for this 344 state; 345 3. Providing leveraged resources to increase the 346 effectiveness and success of applicants’ projects; 347 4. Accelerating commercialization of micro-targeted 348 technologies in the biomedical and technical fields; and 349 5. Encouraging the establishment and growth of high 350 quality, high-wage advanced biomedical and technology firms in 351 this state. 352 (2) ELIGIBILITY GUIDELINES.—A qualified applicant must: 353 (a) Be a company specializing in micro-targeted technology 354 which is registered with the Secretary of State to operate in 355 this state; 356 (b) Conduct its business activities in this state; 357 (c) Have fewer than 25 full-time, worldwide employees, 358 including full-time employees leased to the applicant, of which 359 at least 75 percent are domiciled in this state; 360 (d) Have at least one active application for a patent under 361 35 U.S.C. s. 111(a) filed with the United States Patent and 362 Trademark Office; 363 (e) Have received research grants or other financial 364 assistance from governmental entities, foundations, and other 365 private entities or investors, which in total at least equals 366 the amount of the grant being requested through this program; 367 (f) Have been selected to receive state university research 368 commercialization assistance grant funding, pursuant to s. 369 1004.226, which will be considered for the list of qualified 370 technologies; 371 (g) Have an executed agreement with the licensing 372 institution; and 373 (h) Have an established business plan that describes its 374 commercialization strategy, a business development plan that 375 includes revenue projections and a strategy for becoming 376 profitable, and a timeline for development that addresses 377 revenue growth and job creation in this state. 378 379 Each company receiving funding must provide the institute 380 and the office an annual report on its development since being 381 awarded the grant. The report must include the company’s 382 commercialization strategy; business development plan; timeline 383 for development; actual revenue and revenue projections, both 384 total and within Florida only; and actual employment and 385 employment projections, both total and within Florida only. The 386 report is due on the anniversary date of when the company 387 received its grant. 388 (3) GRANT SELECTION PROCESS AND ADMINISTRATION.— 389 (a) The office shall provide administrative support to the 390 institute, as needed, for the twice-yearly issuance of an open 391 call for grant applications, for providing blank application 392 forms, and for receiving and processing the applications for 393 review. 394 (b) The office shall collect and provide to the institute 395 all grant applications within 15 days after the posted submittal 396 deadline date. 397 (c) The board of directors of the institute shall review 398 all grant applications received and, based on the eligibility 399 guidelines in subsection (3), submit a list of recommended grant 400 recipients to the office for its final approval. An application 401 must be recommended for approval or be denied by the institute’s 402 board within 45 days after receiving the application. The total 403 amount of grants recommended for disbursal to eligible companies 404 may not exceed $4.5 million in any one year. 405 (d) The executive director of the office shall review the 406 institute’s list of recommended grant recipients, and must 407 approve or deny the individual recommendations. The executive 408 director’s decisions must be made within 30 days after receiving 409 the list of recommendations from the institute. 410 (e) This section does not create a presumption that an 411 applicant will be approved by the office to receive a grant. 412 However, the office may issue a nonbinding opinion letter, upon 413 the request of a prospective applicant, as to its eligibility 414 for a grant and the potential amount of the grant. 415 (f) Grant awards shall be disbursed twice yearly to 416 recipient companies. 417 (4) AWARDS.—The office may make a one-time award of up to 418 $500,000 to a qualified applicant. Disbursal of grant awards 419 shall be within 45 days after the office’s final approval of 420 grant applications. 421 (5) USE OF GRANT FUNDS.—Grant funds shall be used by a 422 recipient to pay only wages, rent, and other operating expenses, 423 and to purchase equipment and supplies necessary to its 424 business. Grant funds may not be used to retire company debt. 425 (6) ANNUAL REPORT.—The office, with assistance from the 426 institute, shall submit an annual report of the grant program’s 427 activities to the Governor, the President of the Senate, and the 428 Speaker of the House of Representatives by July 15 of each year, 429 beginning in 2010. 430 (7) RULES.—The office may adopt rules pursuant to ss. 431 120.536(1) and 120.54 to administer this section, including the 432 format and content of grant application forms, and the criteria 433 for qualifying companies engaged in technology research and 434 experimental development, production, or provision of technology 435 for commercial or public purposes. 436 (8) MONITORING.—Before the 2011 Regular Session of the 437 Legislature, the Office of Program Policy Analysis and 438 Government Accountability shall conduct a review and evaluation 439 of the grant program. The office shall specifically evaluate the 440 grant program’s effectiveness in using state funds to sustain 441 and nurture companies developing micro-targeted technologies, to 442 create high-wage jobs, and to attract outside investment in 443 these companies. 444 Section 9.(1) The sum of $22 million is transferred from 445 the Florida Opportunity Fund to the Economic Development Trust 446 Fund for the purpose of funding the credit transfer program and 447 grant program created by this act. Notwithstanding s. 216.301, 448 Florida Statutes, and pursuant to s. 216.351, Florida Statutes, 449 the unexpended balance of this appropriation at the end of the 450 fiscal year shall remain in the trust fund and shall be 451 available for carrying out the purposes of the programs in 452 future years. 453 (2) Of that amount: 454 (a) The sum of $2 million is appropriated to the Institute 455 for the Commercialization of Public Research for the 2009-2010 456 fiscal year to support its operations, including its management, 457 operations, tracking, and measurement of outcomes relative to 458 the grant program. 459 (b) The sum of $14 million shall be retained in the 460 Economic Development Trust Fund and earmarked for the Micro 461 Targeted Technology Commercialization Assistance Grant Program, 462 to be used consistent with the purposes of s. 220.195, Florida 463 Statutes. 464 (c) The sum of $5.8 million shall be retained in the 465 Economic Development Trust Fund to be used to reimburse the 466 General Revenue Fund so as to defray the cost to the state of 467 the net operating loss tax credits created in s. 220.195, 468 Florida Statutes. 469 (d) The sum of $200,000 shall be retained in the Economic 470 Development Trust Fund to be drawn, as needed, to pay the 471 administrative costs incurred by the Office of Tourism, Trade, 472 and Economic Development associated with implementing the Micro 473 targeted Technology Commercialization Program and associated 474 with the Innovation Incentive Program. 475 Section 10.Sections 220.194 and 220.195, Florida Statutes, 476 are repealed effective June 30, 20l3, unless reviewed and saved 477 from repeal through reenactment by the Legislature. 478 Section 11. This act shall take effect upon becoming a law. 479 480 481 ================= T I T L E A M E N D M E N T ================ 482 And the title is amended as follows: 483 Delete everything before the enacting clause 484 and insert: 485 A bill to be entitled 486 An act relating to economic development; creating the 487 “Micro-Targeted Technology Commercialization Act”; providing 488 that the purpose of the act is to promote the commercialization 489 of certain technologies by startup and early stage companies in 490 this state; amending s. 213.053, F.S.; authorizing the 491 Department of Revenue to share certain confidential information 492 with the Office of Tourism, Trade, and Economic Development; 493 amending s. 220.02, F.S.; adding the tax credits available under 494 s. 220.194, F.S., to the list of credits which may be taken 495 against state corporate income tax; amending s. 220.13, F.S.; 496 redefining the term “adjusted federal income” to prohibit a 497 seller from deducting from his or her taxable income any net 498 operating loss transferred pursuant to the act; amending s. 499 220.16, F.S.; providing for allocation of specified nonbusiness 500 income to the state; creating s. 220.194, F.S.; creating the 501 Micro-Targeted Technology Commercialization Credit Transfer 502 Program; providing intent, goals, and objectives; providing 503 definitions; requiring that the Institute for the 504 Commercialization of Public Research identify examples of micro 505 targeted technology and compile a list of the technology for the 506 Office of Tourism, Trade, and Economic Development; requiring 507 the office to certify eligible companies for the transfer of 508 corporate income tax net operating loss amounts as certified 509 credits; providing qualifications and an application process and 510 requirements; requiring an application fee; providing for an 511 application deadline; requiring the office to grant or deny an 512 application within a specified time after receiving a completed 513 application; providing for calculating the certified credit 514 amount; providing a maximum amount that may be transferred; 515 providing a penalty; requiring each certified company to file an 516 annual report with the office; requiring the office and the 517 Department of Revenue to adopt rules; creating s. 288.95, F.S.; 518 creating the Micro-Targeted Technology Commercialization 519 Assistance Grant Program; providing intent, goals, and 520 objectives of the grant program; directing the Office of 521 Tourism, Trade, and Economic Development to manage the grant 522 program; directing the Florida Institute for the 523 Commercialization of Public Research to review grant 524 applications and submit recommendations to the Office of 525 Tourism, Trade, and Economic Development; specifying eligibility 526 requirements for grants; specifying the grant amount; detailing 527 the permissible uses of the grant funds; requiring the Office of 528 Tourism, Trade, and Economic Development to prepare an annual 529 report; providing rulemaking authority; directing the Office of 530 Program Policy Analysis and Government Accountability to review 531 the program and prepare a report; providing an appropriation; 532 providing for an allocation of the funds; providing for future 533 repeal of the credit transfer program and the grant program; 534 providing an effective date.