CS/HB 1169

A bill to be entitled
2An act relating to Florida ports investments; creating s.
3311.23, F.S.; providing a short title; providing a
4purpose; providing definitions; creating the Florida Ports
5Investment Corporation; subjecting the corporation to
6certain public meetings and public records requirements;
7providing authority and requirements for the corporation;
8providing for a board of directors; providing for
9appointment of board members; providing for investments by
10the corporation in certain port projects; specifying
11allocations of certain funds for certain port activities,
12investments, and education; providing requirements for
13capital allocation and investments; providing requirements
14for certain uninvested capital; providing requirements for
15investments; providing for a premium tax credit; providing
16for carryforward of the credit; providing limitations on
17the credit; providing limitations on the amount of tax
18credits; providing investment requirements; providing
19procedures, requirements, and limitations for transfers of
20unused credits; authorizing the corporation and the office
21to charge certain fees; providing reporting requirements;
22authorizing the Department of Revenue and the office to
23adopt rules; amending s. 213.053, F.S.; authorizing the
24Department of Revenue to provide certain information to
25the office; providing an effective date.
27Be It Enacted by the Legislature of the State of Florida:
29     Section 1.  Section 311.23, Florida Statutes, is created to
31     311.23  Florida Ports Investment Act.-
32     (1)  SHORT TITLE.-This section may be cited as the "Florida
33Ports Investment Act."
34     (2)  PURPOSE.-The primary purpose of this section is to
35stimulate a substantial increase in the state's port
36infrastructure by providing an incentive for insurance companies
37to invest in port activities in this state which, in turn, will
38generate investments in new port projects or in expanding port
39projects. The increase in investment capital flowing into new or
40expanding port activities and businesses is intended to
41contribute to employment growth, create jobs that exceed the
42average wage for the county in which the jobs are created, and
43expand or diversify the economic base of this state.
44     (3)  DEFINITIONS.-As used in this section, the term:
45     (a)  "Corporation" means the Florida Ports Investment
46Corporation created under subsection (4).
47     (b)  "Investment capital" means an investment of cash by a
48participating investor in the corporation in exchange for the
49tax credits provided in this section.
50     (c)  "Office" means the Office of Tourism, Trade, and
51Economic Development.
52     (d)  "Participating investor" means any insurance company
53subject to premium tax liability under s. 624.509 that
54contributes investment capital pursuant to this section.
55     (e)  "Premium tax liability" means any liability incurred
56by an insurance company under s. 624.509.
57     (f)  "Qualified port project" means the ports listed in s.
58403.021(9)(b) or any associated business or project that uses
59those ports for the movement of goods and people, as determined
60by the corporation.
63     (a)  The Florida Ports Investment Corporation is created as
64a corporation not for profit, to be incorporated under the
65provisions of chapter 617 and approved by the Department of
66State, and is not a unit or entity of state government. However,
67the Legislature determines that public policy dictates that the
68corporation operate in the most open and accessible manner
69consistent with its public purpose. Therefore, the Legislature
70specifically declares that the corporation and its advisory
71company are subject to the public records and meetings
72requirements of chapters 119 and 286. The corporation:
73     1.  May receive, hold, invest, and administer funds and
74make expenditures consistent with the purposes of this section.
75     2.  May make purchases, sales, exchanges, investments, and
76reinvestments for and on behalf of the funds received pursuant
77to this section.
78     3.  Shall retain at least one investment advisory company
79to assist the corporation in carrying out the provisions of this
80section. Any such company must be retained pursuant to the
81provisions of s. 287.055 and must have a minimum of 5 years'
82experience raising investment capital from similar investors,
83with not less than $100 million actually raised from insurance
84companies seeking a tax credit similar to that provided by this
86     (b)  The corporation shall be governed by a board of
87directors comprised of:
88     1.  The director of the office.
89     2.  Two members appointed by the Governor, two members
90appointed by the President of the Senate, and two members
91appointed by the Speaker of the House of Representatives.
92Appointed members must have significant experience in
93international business, transportation, law, or logistics.
94Appointed members are subject to any restrictions on conflicts
95of interest specified in the organizational documents of the
96corporation and may not have any interest in any investments
97made by the corporation pursuant to subsection (5). Each
98appointed member shall be appointed for a term of 4 years. A
99vacancy on the board shall be filled by the appointing official
100for the member whose vacancy is to be filled or whose term has
101expired. An appointed member may be removed by the appointing
102official for that member, for cause. Absence from three
103consecutive meetings shall result in automatic removal. Any
104member is eligible for reappointment.
105     3.  The chair of the Florida Seaport Transportation and
106Economic Development Council shall serve as an ex officio co-
107director of the board.
108     4.  The Secretary of Transportation or his or her designee
109shall serve as an ex officio, nonvoting co-director of the
111     5.  Members of the board shall serve without compensation,
112but may be reimbursed for all reasonable, necessary, and actual
113expenses as determined and approved by the board pursuant to s.
117     (a)1.  The corporation shall seek to maintain the state's
118advantage in ports and related industries. In order to maintain
119that advantage, the corporation shall:
120     a.  Allocate at least 65 percent of the capital received
121under this section to on-port activities or infrastructure as
122described in s. 315.02(6).
123     b.  Allocate at least 25 percent of the capital received
124under this section to off-port activities or infrastructure that
125improve the movement and intermodal transportation of cargo or
126passengers in commerce and trade and that will support the
127interests, purposes, and requirements of ports specified in s.
129     c.  Allocate at least 5 percent of the remaining capital
130received under this section to education related to ports and
131port-related studies under the New Florida Initiative developed
132by the Florida Board of Governors of the State University
134     2.  The capital received under this section shall be
135allocated by July 1, 2012, or held in accordance with paragraph
137     3.  Funding for such projects shall be on a matching basis
138as determined by the corporation, except that at least 25
139percent of total project funds must come from port funds, local
140funds, private funds, or federal funds.
141     4.  An individual port project may not consume more than 15
142percent of the total revenues of the corporation's intake.
143     (b)  The corporation shall hold all capital received under
144this section that is not invested in qualified port projects and
145such capital:
146     1.  Must be held in a financial institution as defined by
147s. 655.005(1)(h) or held by a broker-dealer registered under s.
149     2.  Must be invested only in:
150     a.  United States Treasury obligations;
151     b.  Certificates of deposit or other obligations, maturing
152within 3 years after acquisition of such certificates or
153obligations, issued by any financial institution or trust
154company incorporated under the laws of the United States;
155     c.  Marketable obligations, maturing within 5 years or less
156after the acquisition of such obligations, which are rated "A"
157or better by any nationally recognized credit rating agency; or
158     d.  Interests in money market funds, the portfolio of which
159is limited to cash and obligations described in sub-
160subparagraphs a.-c.
161     (c)  All investment decisions shall be made by the
162corporation, which must certify that each project is of a
163beneficial nature to a port listed in s. 403.021(9)(b), is ready
164to proceed within 60 days for design, construction, and
165permitting, and will create a lasting economic impact as
166determined by the board. Applications for funding by qualified
167port projects must be made to the corporation. The board may
168establish procedural rules for the application form, application
169procedures, and criteria for making investment decisions based
170upon the requirements established in this paragraph.
172     (a)  Any participating investor who makes an investment of
173investment capital shall earn a vested credit against premium
174tax liability equal to 100 percent of the face amount of the
175credits purchased by the participating investor and such
176investments may not be subject to recapture, disallowance,
177forfeiture, or reduction. Participating investors shall be
178entitled to use no more than 10 percentage points of the vested
179premium tax credit, including any carryforward credits under
180this section, per year beginning with premium tax filings for
181calendar year 2012. Any premium tax credits not used by
182participating investors in any single year may be carried
183forward and applied against the premium tax liabilities of such
184investors for subsequent calendar years. The carryforward credit
185may be applied against subsequent premium tax filings through
186calendar year 2029.
187     (b)  The credit to be applied against premium tax liability
188in any single year may not exceed the premium tax liability of
189the participating investor for that taxable year.
190     (c)  A participating investor claiming a credit against
191premium tax liability earned through an investment in the
192corporation is not required to pay any additional retaliatory
193tax levied pursuant to s. 624.5091 as a result of claiming such
194credit. Because credits under this section are available to a
195participating investor, s. 624.5091 does not limit such credit
196in any manner.
197     (d)  The amount of tax credits vested under this section
198may not be considered in ratemaking proceedings involving a
199participating investor.
201     (a)  The total amount of tax credits which may be allocated
202by the office may not exceed $100 million. The total amount of
203tax credits which may be used by participating investors under
204this section may not exceed $10 million annually.
205     (b)  The office shall be responsible for allocating premium
206tax credits as provided for in this section to participating
207investors. A participating investor must submit an application
208to the office for the tax credit authorized in this section.
210     (a)  Upon application to and approval by the office, a
211participating investor may elect to transfer, in whole or in
212part, any unused credit amount granted under this section. The
213office shall notify the Department of Revenue of the election
214and transfer.
215     (b)  A participating investor that elects to apply a credit
216amount against taxes remitted under s. 624.509 is permitted a
217one-time transfer of unused credits to one transferee, and such
218transfer must occur in the same taxable year.
219     (c)  The transferee is subject to the same rights and
220limitations as the participating investor awarded the tax
221credit, except that the transferee may not sell or otherwise
222transfer the tax credit.
223     (9)  FEES.-The corporation may charge reasonable fees for
224administering and processing applications by qualified port
225projects for funding pursuant to paragraph (5)(c), and the
226office may charge reasonable fees for administering and
227processing applications by participating investors for tax
228credits pursuant to subsection (7). Any fee charged by the
229corporation or office under this subsection for an application
230may not exceed the actual cost incurred by the corporation or
231office in administering and processing any application for
232funding or a tax credit.
233     (10)  REPORTING REQUIREMENTS.-The office shall report on an
234annual basis to the Governor, the President of the Senate, and
235the Speaker of the House of Representatives on or before
236February 1:
237     (a)  The total dollar amount received by the corporation
238from all participating investors and any other investor, the
239identity of the participating investors, and the total amount of
240premium tax credit used by each participating investor for the
241previous calendar year.
242     (b)  The total dollar amount invested by the corporation in
243qualified port projects, the identity and location of those
244projects, the amount invested in each qualified port project,
245and the total number of permanent, full-time jobs created or
246retained by each qualified port project.
247     (c)  The return for the state as a result of the
248investments in qualified port projects, including the extent to
250     1.  Investments have contributed to employment growth.
251     2.  The wage level of businesses in which the corporation
252has invested exceeds the average wage for the county in which
253the jobs are located.
254     3.  The investments of the corporation in qualified port
255projects have contributed to expanding or diversifying the
256economic base of the state.
258     (a)  The Department of Revenue may adopt rules pursuant to
259ss. 120.536(1) and 120.54 to administer this section, including,
260but not limited to, rules governing the examination and audit
261procedures required to administer this section and the manner
262and form of documentation required to claim tax credits awarded
263or transferred under this section.
264     (b)  The office may adopt rules pursuant to ss. 120.536(1)
265and 120.54 and develop procedures to administer this section,
266including, but not limited to, rules specifying requirements for
267the application and approval process, records required for
268substantiation for tax credits, and the manner and form of
269documentation required to claim tax credits awarded or
270transferred under this section.
271     Section 2.  Paragraph (z) is added to subsection (8) of
272section 213.053, Florida Statutes, to read:
273     213.053  Confidentiality and information sharing.-
274     (8)  Notwithstanding any other provision of this section,
275the department may provide:
276     (z)  Information relating to tax credits taken under s.
277624.509 to the Office of Tourism, Trade, and Economic
280Disclosure of information under this subsection shall be
281pursuant to a written agreement between the executive director
282and the agency. Such agencies, governmental or nongovernmental,
283shall be bound by the same requirements of confidentiality as
284the Department of Revenue. Breach of confidentiality is a
285misdemeanor of the first degree, punishable as provided by s.
286775.082 or s. 775.083.
287     Section 3.  This act shall take effect July 1, 2010.

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