HB 1817

CS

CHAMBER ACTION

1	The State Administration Council recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5
6	A bill to be entitled
7	An act relating to review under the Open Government Sunset
8	Review Act; amending s. 288.99, F.S., the "Certified
9	Capital Company Act"; removing the October 2, 2005, repeal
10	of information relating to an active investigation or
11	office review of a certified capital company scheduled
12	under the Open Government Sunset Review Act; narrowing the
13	exemption; eliminating the exemption from public records
14	requirements for social security numbers of any customers
15	of a certified capital company, complainants, or persons
16	associated with a certified capital company or qualified
17	business; eliminating references to specified premium tax
18	credits under the act designated as "Program One" and
19	"Program Two"; removing the requirement that a certified
20	capital company must invest 100 percent of its certified
21	capital prior to making a distribution to its equity
22	holders; requiring a certified capital company to obtain
23	an audit to verify that any proposed distributions will be
24	made in compliance with the law; requiring a certified
25	capital company to submit audits to the Office of
26	Financial Regulation of the Financial Services Commission
27	prior to the end of the fiscal year; prohibiting a
28	certified capital company from making a distribution to
29	its equity holders until the annual audit has been
30	reviewed and approved by the office; providing
31	requirements and procedures of the office subsequent to
32	review of proposed distributions; authorizing voluntary
33	decertification of a certified capital company; providing
34	procedures and requirements with respect thereto; allowing
35	tax credits earned under the program to be carried forward
36	through December 31, 2017; providing editorial and
37	conforming changes; providing for the future repeal of the
38	Certified Capital Company Act; providing an effective
39	date.
40
41	Be It Enacted by the Legislature of the State of Florida:
42
43	Section 1.  Section 288.99, Florida Statutes, is amended to
44	read:
45	288.99  Certified Capital Company Act.--
46	(1)  SHORT TITLE.--This section may be cited as the
47	"Certified Capital Company Act."
48	(2)  PURPOSE.--The primary purpose of this act is to
49	stimulate a substantial increase in venture capital investments
50	in this state by providing an incentive for insurance companies
51	to invest in certified capital companies in this state which, in
52	turn, will make investments in new businesses or in expanding
53	businesses, including minority-owned or minority-operated
54	businesses and businesses located in a designated Front Porch
55	community, enterprise zone, urban high-crime area, rural job tax
56	credit county, or nationally recognized historic district. The
57	increase in investment capital flowing into new or expanding
58	businesses is intended to contribute to employment growth,
59	create jobs which exceed the average wage for the county in
60	which the jobs are created, and expand or diversify the economic
61	base of this state.
62	(3)  DEFINITIONS.--As used in this section, the term:
63	(a)  "Affiliate of an insurance company" means:
64	1.  Any person directly or indirectly beneficially owning,
65	whether through rights, options, convertible interests, or
66	otherwise, controlling, or holding power to vote 15 percent or
67	more of the outstanding voting securities or other voting
68	ownership interests of the insurance company;
69	2.  Any person 15 percent or more of whose outstanding
70	voting securities or other voting ownership interest is directly
71	or indirectly beneficially owned, whether through rights,
72	options, convertible interests, or otherwise, controlled, or
73	held with power to vote by the insurance company;
74	3.  Any person directly or indirectly controlling,
75	controlled by, or under common control with the insurance
76	company;
77	4.  A partnership in which the insurance company is a
78	general partner; or
79	5.  Any person who is a principal, director, employee, or
80	agent of the insurance company or an immediate family member of
81	the principal, director, employee, or agent.
82	(b)  "Certified capital" means an investment of cash by a
83	certified investor in a certified capital company which fully
84	funds the purchase price of either or both its equity interest
85	in the certified capital company or a qualified debt instrument
86	issued by the certified capital company.
87	(c)  "Certified capital company" means a corporation,
88	partnership, or limited liability company which:
89	1.  Is certified by the office in accordance with this act.
90	2.  Receives investments of certified capital from two or
91	more unaffiliated certified investors.
92	3.  Makes qualified investments as its primary activity.
93	(d)  "Certified investor" means any insurance company
94	subject to premium tax liability pursuant to s. 624.509 that
95	invests certified capital.
96	(e)  "Commission" means the Financial Services Commission.
97	(f)  "Early stage technology business" means a qualified
98	business that is:
99	1.  Involved, at the time of the certified capital
100	company's initial investment in such business, in activities
101	related to developing initial product or service offerings, such
102	as prototype development or the establishment of initial
103	production or service processes;
104	2.  Less than 2 years old and has, together with its
105	affiliates, less than $3 million in annual revenues for the
106	fiscal year immediately preceding the initial investment by the
107	certified capital company on a consolidated basis, as determined
108	in accordance with generally accepted accounting principles;
109	3.  The Florida Black Business Investment Board;
110	4.  Any entity that is majority owned by the Florida Black
111	Business Investment Board; or
112	5.  Any entity in which the Florida Black Business
113	Investment Board holds a majority voting interest on the board
114	of directors.
115	(g)  "Office" means the Office of Financial Regulation of
116	the commission.
117	(h)  "Premium tax liability" means any liability incurred
118	by an insurance company under the provisions of ss. 624.509 and
119	624.5091.
120	(i)  "Principal" means an executive officer of a
121	corporation, partner of a partnership, manager of a limited
122	liability company, or any other person with equivalent executive
123	functions.
124	(j)  "Qualified business" means the Digital Divide Trust
125	Fund established under the State of Florida Technology Office or
126	a business that meets the following conditions as evidenced by
127	documentation required by commission rule:
128	1.  The business is headquartered in this state and its
129	principal business operations are located in this state or at
130	least 75 percent of the employees are employed in the state.
131	2.  At the time a certified capital company makes an
132	initial investment in a business, the business would qualify for
133	investment under 13 C.F.R. s. 121.301(c), which is involved in
134	manufacturing, processing or assembling products, conducting
135	research and development, or providing services.
136	3.  At the time a certified capital company makes an
137	initial investment in a business, the business certifies in an
138	affidavit that:
139	a.  The business is unable to obtain conventional
140	financing, which means that the business has failed in an
141	attempt to obtain funding for a loan from a bank or other
142	commercial lender or that the business cannot reasonably be
143	expected to qualify for such financing under the standards of
144	commercial lending;
145	b.  The business plan for the business projects that the
146	business is reasonably expected to achieve in excess of $25
147	million in sales revenue within 5 years after the initial
148	investment, or the business is located in a designated Front
149	Porch community, enterprise zone, urban high crime area, rural
150	job tax credit county, or nationally recognized historic
151	district;
152	c.  The business will maintain its headquarters in this
153	state for the next 10 years and any new manufacturing facility
154	financed by a qualified investment will remain in this state for
155	the next 10 years, or the business is located in a designated
156	Front Porch community, enterprise zone, urban high crime area,
157	rural job tax credit county, or nationally recognized historic
158	district; and
159	d.  The business has fewer than 200 employees and at least
160	75 percent of the employees are employed in this state. For
161	purposes of this subsection, the term also includes the Florida
162	Black Business Investment Board, any entity majority owned by
163	the Florida Black Business Investment Board, or any entity in
164	which the Florida Black Business Investment Board holds a
165	majority voting interest on the board of directors.
166	4.  The term does not include:
167	a.  Any business predominantly engaged in retail sales,
168	real estate development, insurance, banking, lending, or oil and
169	gas exploration.
170	b.  Any business predominantly engaged in professional
171	services provided by accountants, lawyers, or physicians.
172	c.  Any company that has no historical revenues and either
173	has no specific business plan or purpose or has indicated that
174	its business plan is solely to engage in a merger or acquisition
175	with any unidentified company or other entity.
176	d.  Any company that has a strategic plan to grow through
177	the acquisition of firms with substantially similar business
178	which would result in the planned net loss of Florida-based jobs
179	over a 12-month period after the acquisition as determined by
180	the office.
181	(k)  "Qualified debt instrument" means a debt instrument,
182	or a hybrid of a debt instrument, issued by a certified capital
183	company, at par value or a premium, with an original maturity
184	date of at least 5 years after the date of issuance, a repayment
185	schedule which is no faster than a level principal amortization
186	over a 5-year period, and interest, distribution, or payment
187	features which are not related to the profitability of the
188	certified capital company or the performance of the certified
189	capital company's investment portfolio.
190	(l)  "Qualified distribution" means any distribution or
191	payment by a certified capital company for:
192	1.  Reasonable costs and expenses, including, but not
193	limited to, professional fees, of forming and syndicating the
194	certified capital company, if no such costs or expenses are paid
195	to a certified investor, except as provided in subparagraph
196	(4)(f)2., and the total cash, cash equivalents, and other
197	current assets permitted by sub-subparagraph (5)(b)3.g. that can
198	be converted into cash within 5 business days available to the
199	certified capital company at the time of receipt of certified
200	capital from certified investors, after deducting the costs and
201	expenses of forming and syndicating the certified capital
202	company, including any payments made over time for obligations
203	incurred at the time of receipt of certified capital but
204	excluding other future qualified distributions and payments made
205	under paragraph (9)(a), are an amount equal to or greater than
206	50 percent of the total certified capital allocated to the
207	certified capital pursuant to subsection (7);
208	2.  Reasonable costs of managing and operating the
209	certified capital company, not exceeding 5 percent of the
210	certified capital in any single year, including an annual
211	management fee in an amount that does not exceed 2.5 percent of
212	the certified capital of the certified capital company;
213	3.  Reasonable and necessary fees in accordance with
214	industry custom for professional services, including, but not
215	limited to, legal and accounting services, related to the
216	operation of the certified capital company; or
217	4.  Any projected increase in federal or state taxes,
218	including penalties and interest related to state and federal
219	income taxes, of the equity owners of a certified capital
220	company resulting from the earnings or other tax liability of
221	the certified capital company to the extent that the increase is
222	related to the ownership, management, or operation of a
223	certified capital company.
224	(m)1.  "Qualified investment" means the investment of cash
225	by a certified capital company in a qualified business for the
226	purchase of any debt, equity, or hybrid security, including a
227	debt instrument or security that has the characteristics of debt
228	but which provides for conversion into equity or equity
229	participation instruments such as options or warrants.
230	2.  The term does not include:
231	a.  Any investment made after the effective date of this
232	act the contractual terms of which require the repayment of any
233	portion of the principal in instances, other than default as
234	determined by commission rule, within 12 months following the
235	initial investment by the certified capital company unless such
236	investment has a repayment schedule no faster than a level
237	principal amortization of at least 2 years;
238	b.  Any "follow-on" or "add-on" investment except for the
239	amount by which the new investment is in addition to the amount
240	of the certified capital company's initial investment returned
241	to it other than in the form of interest, dividends, or other
242	types of profit participation or distributions; or
243	c.  Any investment in a qualified business or affiliate of
244	a qualified business that exceeds 15 percent of certified
245	capital.
246	(n)  "Program One" means the $150 million in premium tax
247	credits issued under this section in 1999, the allocation of
248	such credits under this section, and the regulation of certified
249	capital companies and investments made by them hereunder.
250	(o)  "Program Two" means the $150 million in premium tax
251	credits to be issued under subsection (17), the allocation of
252	such credits under this section, and the regulation of certified
253	capital companies and investments made by them hereunder.
254	(4)  CERTIFICATION; GROUNDS FOR DENIAL OR
255	DECERTIFICATION.--
256	(a)  To operate as a certified capital company, a
257	corporation, partnership, or limited liability company must be
258	certified by the Department of Banking and Finance or the office
259	pursuant to this act.
260	(b)  An applicant for certification as a certified capital
261	company must file a verified application with the Department of
262	Banking and Finance on or before December 1, 1998, a date
263	determined in rules adopted pursuant to subsection (17) in the
264	case of applicants for Program Two, in a form which the
265	commission may prescribe by rule. The applicant shall submit a
266	nonrefundable application fee of $7,500 to the office. The
267	applicant shall provide:
268	1.  The name of the applicant and the address of its
269	principal office and each office in this state.
270	2.  The applicant's form and place of organization and the
271	relevant organizational documents, bylaws, and amendments or
272	restatements of such documents, bylaws, or amendments.
273	3.  Evidence from the Department of State that the
274	applicant is registered with the Department of State as required
275	by law, maintains an active status with the Department of State,
276	and has not been dissolved or had its registration revoked,
277	canceled, or withdrawn.
278	4.  The applicant's proposed method of doing business.
279	5.  The applicant's financial condition and history,
280	including an audit report on the financial statements prepared
281	in accordance with generally accepted accounting principles. The
282	applicant must have, at the time of application for
283	certification, an equity capitalization of at least $500,000 in
284	the form of cash or cash equivalents. The applicant must
285	maintain this equity capitalization until the applicant receives
286	an allocation of certified capital pursuant to this act. If the
287	date of the application is more than 90 days after preparation
288	of the applicant's fiscal year-end financial statements, the
289	applicant may file financial statements reviewed by an
290	independent certified public accountant for the period
291	subsequent to the audit report, together with the audited
292	financial statement for the most recent fiscal year. If the
293	applicant has been in business less than 12 months, and has not
294	prepared an audited financial statement, the applicant may file
295	a financial statement reviewed by an independent certified
296	public accountant.
297	6.  Copies of any offering materials used or proposed to be
298	used by the applicant in soliciting investments of certified
299	capital from certified investors.
300	(c)  Within 60 days after receipt of a verified
301	application, the office shall grant or deny certification as a
302	certified capital company. If the office denies certification
303	within the time period specified, the office shall inform the
304	applicant of the grounds for the denial. If the office has not
305	granted or denied certification within the time specified, the
306	application shall be deemed approved. The office shall approve
307	the application if the office finds that:
308	1.  The applicant satisfies the requirements of paragraph
309	(b).
310	2.  No evidence exists that the applicant has committed any
311	act specified in paragraph (d).
312	3.  At least two of the principals have a minimum of 5
313	years of experience making venture capital investments out of
314	private equity funds, with not less than $20 million being
315	provided by third-party investors for investment in the early
316	stage of operating businesses. At least one full-time manager or
317	principal of the certified capital company who has such
318	experience must be primarily located in an office of the
319	certified capital company which is based in this state.
320	4.  The applicant's proposed method of doing business and
321	raising certified capital as described in its offering materials
322	and other materials submitted to the office conforms with the
323	requirements of this section.
324	(d)  The office may deny certification or decertify a
325	certified capital company if the grounds for decertification are
326	not removed or corrected within 90 days after the notice of such
327	grounds is received by the certified capital company. The office
328	may deny certification or decertify a certified capital company
329	if the certified capital company fails to maintain common stock
330	or paid-in capital of at least $500,000, or if the office
331	determines that the applicant, or any principal or director of
332	the certified capital company, has:
333	1.  Violated any provision of this section;
334	2.  Made a material misrepresentation or false statement or
335	concealed any essential or material fact from any person during
336	the application process or with respect to information and
337	reports required of certified capital companies under this
338	section;
339	3.  Been convicted of, or entered a plea of guilty or nolo
340	contendere to, a crime against the laws of this state or any
341	other state or of the United States or any other country or
342	government, including a fraudulent act in connection with the
343	operation of a certified capital company, or in connection with
344	the performance of fiduciary duties in another capacity;
345	4.  Been adjudicated liable in a civil action on grounds of
346	fraud, embezzlement, misrepresentation, or deceit; or
347	5.a.  Been the subject of any decision, finding,
348	injunction, suspension, prohibition, revocation, denial,
349	judgment, or administrative order by any court of competent
350	jurisdiction, administrative law judge, or any state or federal
351	agency, national securities, commodities, or option exchange, or
352	national securities, commodities, or option association,
353	involving a material violation of any federal or state
354	securities or commodities law or any rule or regulation adopted
355	under such law, or any rule or regulation of any national
356	securities, commodities, or options exchange, or national
357	securities, commodities, or options association; or
358	b.  Been the subject of any injunction or adverse
359	administrative order by a state or federal agency regulating
360	banking, insurance, finance or small loan companies, real
361	estate, mortgage brokers, or other related or similar
362	industries.
363	(e)  Any offering material involving the sale of securities
364	of the certified capital company shall include the following
365	statement: "By authorizing the formation of a certified capital
366	company, the State of Florida does not endorse the quality of
367	management or the potential for earnings of such company and is
368	not liable for damages or losses to a certified investor in the
369	company. Use of the word 'certified' in an offering does not
370	constitute a recommendation or endorsement of the investment by
371	the State of Florida. Investments in a certified capital company
372	prior to the time such company is certified are not eligible for
373	premium tax credits. If applicable provisions of law are
374	violated, the state may require forfeiture of unused premium tax
375	credits and repayment of used premium tax credits by the
376	certified investor."
377	(f)1.  No insurance company or any affiliate of an
378	insurance company shall, directly or indirectly, own, whether
379	through rights, options, convertible interests, or otherwise, 15
380	percent or more of the voting equity interests of or manage or
381	control the direction of investments of a certified capital
382	company. This prohibition does not preclude a certified
383	investor, insurance company, or any other party from exercising
384	its legal rights and remedies, which may include interim
385	management of a certified capital company, if a certified
386	capital company is in default of its obligations under law or
387	its contractual obligations to such certified investor,
388	insurance company, or other party. Nothing in this subparagraph
389	shall limit an insurance company's ownership of nonvoting equity
390	interests in a certified capital company.
391	2.  A certified capital company may obtain a guaranty,
392	indemnity, bond, insurance policy or other payment undertaking
393	in favor of all of the certified investors of the certified
394	capital company and its affiliates; provided that the entity
395	from which such guaranty, indemnity, bond, insurance policy or
396	other payment undertaking is obtained may not be a certified
397	investor of, or be affiliated with more than one certified
398	investor of, the certified capital company.
399	(g)  On or before December 31 of each year, each certified
400	capital company shall pay to the office an annual, nonrefundable
401	renewal certification fee of $5,000. If a certified capital
402	company fails to pay its renewal fee by the specified deadline,
403	the company must pay a late fee of $5,000 in addition to the
404	renewal fee on or by January 31 of each year in order to
405	continue its certification in the program. On or before April 30
406	of each year, each certified capital company shall file audited
407	financial statements with the office. No renewal fees shall be
408	required within 6 months after the date of initial
409	certification.
410	(h)  The commission and office shall administer and provide
411	for the enforcement of certification requirements for certified
412	capital companies as provided in this act. The commission may
413	adopt any rules necessary to carry out its duties, obligations,
414	and powers related to certification, renewal of certification,
415	or decertification of certified capital companies and the
416	commission and office may perform any other acts necessary for
417	the proper administration and enforcement of such duties,
418	obligations, and powers.
419	(i)  Decertification of a certified capital company under
420	this subsection does not affect the ability of certified
421	investors in such certified capital company from claiming future
422	premium tax credits earned as a result of an investment in the
423	certified capital company during the period in which it was duly
424	certified.
425	(5)  INVESTMENTS BY CERTIFIED CAPITAL COMPANIES.--
426	(a)  To remain certified, a certified capital company must
427	make qualified investments according to the following schedule:
428	1.  At least 20 percent of its certified capital must be
429	invested in qualified investments by December 31, 2000.
430	2.  At least 30 percent of its certified capital must be
431	invested in qualified investments by December 31, 2001.
432	3.  At least 40 percent of its certified capital must be
433	invested in qualified investments by December 31, 2002.
434	4.  At least 50 percent of its certified capital must be
435	invested in qualified investments by December 31, 2003. At least
436	50 percent of such qualified investments must be invested in
437	early stage technology businesses.
438	(b)  All capital not invested in qualified investments by
439	the certified capital company:
440	1.  Must be held in a financial institution as defined by
441	s. 655.005(1)(h) or held by a broker-dealer registered under s.
442	517.12, except as set forth in sub-subparagraph 3.g.
443	2.  Must not be invested in a certified investor of the
444	certified capital company or any affiliate of the certified
445	investor of the certified capital company, except for an
446	investment permitted by sub-subparagraph 3.g., provided
447	repayment terms do not permit the obligor to directly or
448	indirectly manage or control the investment decisions of the
449	certified capital company.
450	3.  Must be invested only in:
451	a.  Any United States Treasury obligations;
452	b.  Certificates of deposit or other obligations, maturing
453	within 3 years after acquisition of such certificates or
454	obligations, issued by any financial institution or trust
455	company incorporated under the laws of the United States;
456	c.  Marketable obligations, maturing within 10 years or
457	less after the acquisition of such obligations, which are rated
458	"A" or better by any nationally recognized credit rating agency;
459	d.  Mortgage-backed securities, with an average life of 5
460	years or less, after the acquisition of such securities, which
461	are rated "A" or better by any nationally recognized credit
462	rating agency;
463	e.  Collateralized mortgage obligations and real estate
464	mortgage investment conduits that are direct obligations of an
465	agency of the United States Government; are not private-label
466	issues; are in book-entry form; and do not include the classes
467	of interest only, principal only, residual, or zero;
468	f.  Interests in money market funds, the portfolio of which
469	is limited to cash and obligations described in sub-
470	subparagraphs a.-d.; or
471	g.  Obligations that are issued by an insurance company
472	that is not a certified investor of the certified capital
473	company making the investment, that has provided a guarantee
474	indemnity bond, insurance policy, or other payment undertaking
475	in favor of the certified capital company's certified investors
476	as permitted by subparagraph (3)(l)1. or an affiliate of such
477	insurance company as defined by subparagraph (3)(a)3. that is
478	not a certified investor of the certified capital company making
479	the investment, provided that such obligations are:
480	(I)  Issued or guaranteed as to principal by an entity
481	whose senior debt is rated "AA" or better by Standard &
482	Poor's Ratings Group or such other nationally recognized credit
483	rating agency as the commission may by rule determine.
484	(II)  Not subordinated to other unsecured indebtedness of
485	the issuer or the guarantor.
486	(III)  Invested by such issuing entity in accordance with
487	sub-subparagraphs 3.a.-f.
488	(IV)  Readily convertible into cash within 5 business days
489	for the purpose of making a qualified investment unless such
490	obligations are held to provide a guarantee, indemnity bond,
491	insurance policy, or other payment undertaking in favor of the
492	certified capital company's certified investors as permitted by
493	subparagraph (3)(l)1.
494	(c)  The aggregate amount of all qualified investments made
495	by the certified capital company from the date of its
496	certification shall be considered in the calculation of the
497	percentage requirements under paragraph (a).
498	(6)  PREMIUM TAX CREDIT; AMOUNT; LIMITATIONS.--
499	(a)  Any certified investor who makes an investment of
500	certified capital shall earn a vested credit against premium tax
501	liability equal to 100 percent of the certified capital invested
502	by the certified investor. Certified investors shall be entitled
503	to use no more than 10 percentage points of the vested premium
504	tax credit earned under a particular program, including any
505	carryforward credits from such program under this act, per year
506	beginning with premium tax filings for calendar year 2000 for
507	credits earned under Program One. Any premium tax credits not
508	used by certified investors in any single year may be carried
509	forward and applied against the premium tax liabilities of such
510	investors for subsequent calendar years.
511	(b)  The credit to be applied against premium tax liability
512	in any single year may not exceed the premium tax liability of
513	the certified investor for that taxable year.
514	(c)  A certified investor claiming a credit against premium
515	tax liability earned through an investment in a certified
516	capital company shall not be required to pay any additional
517	retaliatory tax levied pursuant to s. 624.5091 as a result of
518	claiming such credit. Because credits under this section are
519	available to a certified investor, s. 624.5091 does not limit
520	such credit in any manner.
521	(d)  The amount of tax credits vested under the Certified
522	Capital Company Act shall not be considered in ratemaking
523	proceedings involving a certified investor.
524	(7)  ANNUAL TAX CREDIT; MAXIMUM AMOUNT; ALLOCATION
525	PROCESS.--
526	(a)  The total amount of tax credits which may be allocated
527	by the Office of Tourism, Trade, and Economic Development shall
528	not exceed $150 million with respect to Program One and $150
529	million with respect to Program Two. The total amount of tax
530	credits which may be used by certified investors under this act
531	shall not exceed $15 million annually with respect to credits
532	earned under Program One and $15 million annually with respect
533	to credits earned under Program Two.
534	(b)  The Office of Tourism, Trade, and Economic Development
535	shall be responsible for allocating premium tax credits as
536	provided for in this act to certified capital companies.
537	(c)  Each certified capital company must apply to the
538	Office of Tourism, Trade, and Economic Development for an
539	allocation of premium tax credits for potential certified
540	investors on a form developed by the Office of Tourism, Trade,
541	and Economic Development with the cooperation of the Department
542	of Revenue. The form shall be accompanied by an affidavit from
543	each potential certified investor confirming that the potential
544	certified investor has agreed to make an investment of certified
545	capital in a certified capital company up to a specified amount,
546	subject only to the receipt of a premium tax credit allocation
547	pursuant to this subsection. No certified capital company shall
548	submit premium tax allocation claims on behalf of certified
549	investors that in the aggregate would exceed the total dollar
550	amount appropriated by the Legislature for the specific program.
551	No allocation shall be made to the potential investors of a
552	certified capital company under Program Two unless such
553	certified capital company has filed premium tax allocation
554	claims of not less than $15 million in the aggregate.
555	(d)  The Office of Tourism, Trade, and Economic Development
556	shall inform each certified capital company of its share of
557	total premium tax credits available for allocation to each of
558	its potential investors.
559	(e)  If a certified capital company does not receive
560	certified capital equaling the amount of premium tax credits
561	allocated to a potential certified investor for which the
562	investor filed a premium tax allocation claim within 10 business
563	days after the investor received a notice of allocation, the
564	certified capital company shall notify the Office of Tourism,
565	Trade, and Economic Development by overnight common carrier
566	delivery service of the company's failure to receive the
567	capital. That portion of the premium tax credits allocated to
568	the certified capital company shall be forfeited. If the Office
569	of Tourism, Trade, and Economic Development must make a pro rata
570	allocation under paragraph (f), that office shall reallocate
571	such available credits among the other certified capital
572	companies on the same pro rata basis as the initial allocation.
573	(f)  If the total amount of capital committed by all
574	certified investors to certified capital companies in premium
575	tax allocation claims under Program Two exceeds the aggregate
576	cap on the amount of credits that may be awarded under Program
577	Two, the premium tax credits that may be allowed to any one
578	certified investor under Program Two shall be allocated using
579	the following ratio:
580
581	A/B = X/>$150,000,000
582
583	where the letter "A" represents the total amount of certified
584	capital certified investors have agreed to invest in any one
585	certified capital company under Program Two, the letter "B"
586	represents the aggregate amount of certified capital that all
587	certified investors have agreed to invest in all certified
588	capital companies under Program Two, the letter "X" is the
589	numerator and represents the total amount of premium tax credits
590	and certified capital that may be allocated to a certified
591	capital company on a date determined by rule adopted by the
592	commission pursuant to subsection (17), and $150 million is the
593	denominator and represents the total amount of premium tax
594	credits and certified capital that may be allocated to all
595	certified investors under Program Two. Any such premium tax
596	credits are not first available for utilization until annual
597	filings are made in 2001 for calendar year 2000 in the case of
598	Program One, and the tax credits may be used at a rate not to
599	exceed 10 percent annually per program.
600	(g)  The maximum amount of certified capital for which
601	premium tax allocation claims may be filed on behalf of any
602	certified investor and its affiliates by one or more certified
603	capital companies may not exceed $15 million for Program One and
604	$22.5 million for Program Two.
605	(h)  To the extent that less than $150 million in certified
606	capital is raised in connection with the procedure set forth in
607	paragraphs (c)-(g), the commission may adopt rules to allow a
608	subsequent allocation of the remaining premium tax credits
609	authorized under this section.
610	(i)  The Office of Tourism, Trade, and Economic Development
611	shall issue a certification letter for each certified investor,
612	showing the amount invested in the certified capital company
613	under each program. The applicable certified capital company
614	shall attest to the validity of the certification letter.
615	(8)  ANNUAL TAX CREDIT; CLAIM PROCESS.--
616	(a)  On an annual basis, on or before January 31, each
617	certified capital company shall file with the office and the
618	Office of Tourism, Trade, and Economic Development, in
619	consultation with the office, on a form prescribed by the Office
620	of Tourism, Trade, and Economic Development, for each calendar
621	year:
622	1.  The total dollar amount the certified capital company
623	received from certified investors, the identity of the certified
624	investors, and the amount received from each certified investor
625	during the immediately preceding calendar year.
626	2.  The total dollar amount the certified capital company
627	invested and the amount invested in qualified businesses,
628	together with the identity and location of those businesses and
629	the amount invested in each qualified business during the
630	immediately preceding calendar year.
631	3.  For informational purposes only, the total number of
632	permanent, full-time jobs either created or retained by the
633	qualified business during the immediately preceding calendar
634	year, the average wage of the jobs created or retained, the
635	industry sectors in which the qualified businesses operate, and
636	any additional capital invested in qualified businesses from
637	sources other than certified capital companies.
638	(b)  The form shall be verified by one or more principals
639	of the certified capital company submitting the form.
640	Verification shall be accomplished as provided in s.
641	92.525(1)(b) and subject to the provisions of s. 92.525(3).
642	(c)  The Office of Tourism, Trade, and Economic Development
643	shall review the form, and any supplemental documentation,
644	submitted by each certified capital company for the purpose of
645	verifying:
646	1.  That the businesses in which certified capital has been
647	invested by the certified capital company are in fact qualified
648	businesses, and that the amount of certified capital invested by
649	the certified capital company is as represented in the form.
650	2.  The amount of certified capital invested in the
651	certified capital company by the certified investors.
652	3.  The amount of premium tax credit available to certified
653	investors.
654	(d)  The Department of Revenue is authorized to audit and
655	examine the accounts, books, or records of certified capital
656	companies and certified investors for the purpose of
657	ascertaining the correctness of any report and financial return
658	which has been filed, and to ascertain a certified capital
659	company's compliance with the tax-related provisions of this
660	act.
661	(9)  REQUIREMENT FOR 100 PERCENT INVESTMENT; STATE
662	PARTICIPATION.--
663	(a)  A certified capital company may make qualified
664	distributions at any time. In order to make a distribution to
665	its equity holders, other than a qualified distribution, such
666	distribution shall be made in accordance with the provisions of
667	paragraph (d) or subsection (10) from funds related to a
668	particular program, a certified capital company must have
669	invested an amount cumulatively equal to 100 percent of its
670	certified capital raised under such program in qualified
671	investments. Payments to debt holders of a certified capital
672	company, however, may be made without restriction with respect
673	to repayments of principal and interest on indebtedness owed to
674	them by a certified capital company, including indebtedness of
675	the certified capital company on which certified investors
676	earned premium tax credits. A debt holder that is also a
677	certified investor or equity holder of a certified capital
678	company may receive payments with respect to such debt without
679	restrictions.
680	(b)  Cumulative distributions from a certified capital
681	company from funds related to a particular program to its
682	certified investors and equity holders under such program, other
683	than qualified distributions, in excess of the certified capital
684	company's original certified capital raised under such program
685	and any additional capital contributions to the certified
686	capital company shall with respect to such program may be
687	audited annually by a nationally recognized certified public
688	accounting firm acceptable to the office, at the expense of the
689	certified capital company, if the office directs such audit be
690	conducted. The audit shall determine whether proposed aggregate
691	cumulative distributions from the funds related to a particular
692	program made by the certified capital company to all certified
693	investors and equity holders under such program, other than
694	qualified distributions, have equaled the sum of the certified
695	capital company's original certified capital raised under such
696	program and any additional capital contributions to the
697	certified capital company with respect to such program. The
698	audit also shall express an opinion as to the estimated fair
699	market value of all investments in qualified businesses for
700	which the certified capital company has a debt or equity
701	interest. The office may object, in writing, within 30 days of
702	receipt as to the qualifications of the individual or entity
703	engaged by the certified capital company to perform the
704	appraisal. If the office objects to the qualifications of the
705	appraiser, the office shall, within 90 days, hire an appraiser
706	at the certified capital company's expense to perform the
707	appraisal in question. In such instance, the fair market value
708	for purposes of calculating the amount due to the state shall be
709	the appraisal commissioned by the office. If at the time of any
710	such distribution made by the certified capital company, such
711	distribution taken together with all other such distributions
712	from the funds related to such program made by the certified
713	capital company, other than qualified distributions, exceeds in
714	the aggregate the sum of the certified capital company's
715	original certified capital raised under such program and any
716	additional capital contributions to the certified capital
717	company with respect to such program, as determined by the
718	audit, the certified capital company shall pay to the Department
719	of Revenue 10 percent of the portion of such distribution in
720	excess of such amount. Payments to the Department of Revenue by
721	a certified capital company pursuant to this paragraph shall not
722	exceed the aggregate amount of tax credits used by all certified
723	investors in such certified capital company for such program.
724	(c)  The audit shall be submitted to the office within 90
725	days of the end of the certified capital company's fiscal year.
726	(d)  A certified capital company may not make a
727	distribution to its equity holders, other than a qualified
728	distribution, until the annual audit has been reviewed and
729	approved by the office. The office shall review each proposed
730	distribution in accordance with the business plan submitted by
731	the certified capital company pursuant to paragraph (10)(a) and
732	provide written notice to the certified capital company within
733	60 days of receipt with respect to the approval of any such
734	distribution. In making its determination, the office shall take
735	into consideration the annual audit from the certified public
736	accountant, the projected liability to the state received in
737	conjunction with the annual audit, and the findings of the
738	office's most recently completed annual review. The office shall
739	not approve a distribution to equity holders that would
740	jeopardize the potential for the ultimate collection of the
741	projected liability to the state. The certified capital company
742	shall pay to the Department of Revenue all moneys owed to the
743	state prior to any such distributions.
744	(10)  VOLUNTARY DECERTIFICATION.--
745	(a)  On or before December 31, 2005, the certified capital
746	company shall submit a detailed business plan to the office. The
747	business plan shall outline the certified capital company's plan
748	to voluntarily decertify by no later than December 31, 2010. The
749	business plan shall include projections regarding the potential
750	liability to the state under the participation provisions of
751	paragraph (9)(b) and a reduction in the allowable expense
752	provision from 5 percent to 2 percent of certified capital,
753	effective January 1, 2006.
754	(b)  Any transaction that results in the sale of any
755	beneficial interest in a qualified business must be submitted to
756	the office at least 30 days prior to the consummation of such
757	sale. The certified capital company shall provide all contracts
758	surrounding the sale including the names of all parties to the
759	transaction, the audited financial statements for the most
760	recently completed fiscal year of the qualified business, and
761	the most recent independent valuation that assesses the fair
762	market value of the beneficial interest in the qualified
763	business being sold. Any individual or corporation that proposes
764	to acquire more than a 10-percent beneficial interest in the
765	beneficial interest being sold by the certified capital company
766	shall be identified. No principal or affiliate of a certified
767	capital company may purchase more than a 10-percent beneficial
768	interest in the beneficial interest being sold, unless the
769	amount exceeds 90 percent of the fair market value of such
770	interest.
771	(c)  All sales of beneficial interests in a qualified
772	business shall be for an amount that is not less than 90 percent
773	of the most recently completed independent appraisal on file
774	with the office. The appraisal may not be more than 180 days old
775	at the time of the proposed sale. If a sale is consummated for
776	an amount that is less than 90 percent of the fair market value
777	of the qualified business, then for the purposes of calculating
778	the liability to the state pursuant to paragraph (9)(b), the
779	amount included shall be 90 percent of the fair market value on
780	the most recent appraisal submitted to the office. Nothing in
781	this section shall preclude a certified capital company from
782	obtaining a more recent appraisal of the fair market value. If
783	the office determines that the value of the proposed sale will
784	trigger the penalty provision in this section, then the office
785	shall notify the certified capital company in writing prior to
786	the effective date of such sale.
787	(d)  A certified capital company may apply to the office
788	for decertification at any time after December 31, 2005,
789	provided that:
790	1.  A complete audit has been performed by a certified
791	public accountant and submitted to the office in accordance with
792	paragraph (9)(b). The audit may be conducted at any time during
793	the year; however, such financial statements shall be dated not
794	more than 60 days prior to the receipt of the application by the
795	office. The audit shall be accompanied by an independent
796	appraisal of the fair market value of all qualified businesses
797	in which the certified capital company has a beneficial
798	interest;
799	2.  The certified capital company has paid the Department
800	of Revenue all money owed to the state pursuant to paragraph
801	(9)(b). Such calculation shall be based on the appraised fair
802	market value of the beneficial interests in qualified businesses
803	within 180 days of the application; and
804	3.  A cover letter executed by the principals of the
805	certified capital company requesting the decertification of the
806	certified capital company and sent via certified mail, return
807	receipt requested, has been received by the office.
808	(e)  The office shall have 90 days from the date of receipt
809	of an application for voluntary decertification to review the
810	application to ensure that all money owed to the state has been
811	paid. The office shall notify the certified capital company of
812	its determination in writing within 90 days from the date of
813	receipt. Nothing in this section shall preclude the office from
814	making reasonable requests for additional information or
815	conducting onsite reviews as it deems appropriate. The office
816	shall deny an application for voluntary decertification if money
817	is owed to the state pursuant to paragraph (9)(b). In making its
818	determination regarding the decertification of a certified
819	capital company, the office shall consider the fair market value
820	of all interests in qualified businesses held at the time of the
821	request for decertification.
822	(f)  If the certified capital company has not been
823	voluntarily decertified on or before September 30, 2010, and
824	money is owed to the state pursuant to paragraph (9)(b), then
825	the office shall make a demand for the funds owed by the
826	certified capital company. If the demand is not satisfied by the
827	certified capital company, then the parties shall enter into
828	binding arbitration to determine the amount that the certified
829	capital company may owe to the state. All costs associated with
830	the arbitration shall be paid by the certified capital company.
831	No distributions shall be made by the certified capital company
832	during the arbitration proceedings.
833	(11)(10)  DECERTIFICATION.--
834	(a)  The office shall conduct an annual review of each
835	certified capital company to determine if the certified capital
836	company is abiding by the requirements of certification, to
837	advise the certified capital company as to the eligibility
838	status of its qualified investments, and to ensure that no
839	investment has been made in violation of this act. The cost of
840	the annual review shall be paid by each certified capital
841	company.
842	(b)  Nothing contained in this subsection shall be
843	construed to limit the Chief Financial Officer's or the office's
844	authority to conduct audits of certified capital companies as
845	deemed appropriate and necessary.
846	(c)  Any material violation of this section, or a finding
847	that the certified capital company or any principal or director
848	thereof has committed any act specified in paragraph (4)(d),
849	shall be grounds for decertification of the certified capital
850	company. If the office determines that a certified capital
851	company is no longer in compliance with the certification
852	requirements of this act, the office shall, by written notice,
853	inform the officers of such company that the company may be
854	subject to decertification 90 days after the date of mailing of
855	the notice, unless the deficiencies are corrected and such
856	company is again found to be in compliance with all
857	certification requirements.
858	(d)  At the end of the 90-day grace period, if the
859	certified capital company is still not in compliance with the
860	certification requirements, the office may issue a notice to
861	revoke or suspend the certification or to impose an
862	administrative fine. The office shall advise each respondent of
863	the right to an administrative hearing under chapter 120 prior
864	to final action by the office.
865	(e)  If the office revokes a certification, such revocation
866	shall also deny, suspend, or revoke the certifications of all
867	affiliates of the certified capital company.
868	(f)  Decertification of a certified capital company for
869	failure to meet all requirements for continued certification
870	under paragraph (5)(a) with respect to the certified capital
871	raised under a particular program may cause the recapture of
872	premium tax credits previously claimed by such company under
873	such program and the forfeiture of future premium tax credits to
874	be claimed by certified investors under such program with
875	respect to such certified capital company, as follows:
876	1.  Decertification of a certified capital company within 3
877	years after its certification date with respect to a particular
878	program shall cause the recapture of all premium tax credits
879	earned under such program and previously claimed by such company
880	and the forfeiture of all future premium tax credits earned
881	under such program which are to be claimed by certified
882	investors with respect to such company.
883	2.  When a certified capital company meets all requirements
884	for continued certification under subparagraph (5)(a)1. with
885	respect to certified capital raised under a particular program
886	and subsequently fails to meet the requirements for continued
887	certification under the provisions of subparagraph (5)(a)2. with
888	respect to certified capital raised under such program, those
889	premium tax credits earned under such program which have been or
890	will be taken by certified investors within 3 years after the
891	certification date of the certified capital company with respect
892	to such program shall not be subject to recapture or forfeiture;
893	however, all premium tax credits earned under such program that
894	have been or will be taken by certified investors after the
895	third anniversary of the certification date of the certified
896	capital company for such program shall be subject to recapture
897	or forfeiture.
898	3.  When a certified capital company meets all requirements
899	for continued certification under subparagraphs (5)(a)1. and 2.
900	with respect to a particular program and subsequently fails to
901	meet the requirements for continued certification under
902	subparagraph (5)(a)3. with respect to such program, those
903	premium tax credits earned under such program which have been or
904	will be taken by certified investors within 4 years after the
905	certification date of the certified capital company with respect
906	to such program shall not be subject to recapture or forfeiture;
907	however, all premium tax credits earned under such program that
908	have been or will be taken by certified investors after the
909	fourth anniversary of the certification date of the certified
910	capital company with respect to such program shall be subject to
911	recapture and forfeiture.
912	4.  If a certified capital company has met all requirements
913	for continued certification under paragraph (5)(a) with respect
914	to certified capital raised under a particular program, but such
915	company is subsequently decertified, those premium tax credits
916	earned under such program which have been or will be taken by
917	certified investors within 5 years after the certification date
918	of such company with respect to such program shall not be
919	subject to recapture or forfeiture. Those premium tax credits
920	earned under such program to be taken subsequent to the 5th year
921	of certification with respect to such program shall be subject
922	to forfeiture only if the certified capital company is
923	decertified within 5 years after its certification date with
924	respect to such program.
925	5.  If a certified capital company has invested an amount
926	cumulatively equal to 100 percent of its certified capital
927	raised under a particular program in qualified investments, all
928	premium tax credits claimed or to be claimed by its certified
929	investors under such program shall not be subject to recapture
930	or forfeiture.
931	(g)  Decertification of a certified capital company
932	pursuant to subsection (4) or this subsection does not affect
933	the ability of certified investors in such certified capital
934	company to continue to claim future premium tax credits earned
935	as an investment in the certified capital company during the
936	period in which it was duly certified.
937	(h)  The Office of Tourism, Trade, and Economic Development
938	shall send written notice to the address of each certified
939	investor whose premium tax credit has been subject to recapture
940	or forfeiture, using the address last shown on the last premium
941	tax filing.
942	(i)  The certified investor is responsible for returning to
943	the Department of Revenue any forfeited insurance premium tax
944	credits, and such funds shall be paid into the General Revenue
945	Fund of the state.
946	(j)  The certified investor shall file with the Department
947	of Revenue an amended return or such other report as the
948	commission may prescribe by rule and pay any required tax, not
949	later than 60 days after such decertification has been agreed to
950	or finally determined, whichever shall first occur.
951	(k)  A notice of deficiency may be issued:
952	1.  At any time within 5 years after the date such
953	notification is given; or
954	2.  At any time if a certified investor fails to notify the
955	Department of Revenue.
956
957	In either case, the amount of any proposed assessment set forth
958	in such notice shall be limited to the amount of any deficiency
959	resulting under this act from the recomputation of the certified
960	investor's insurance premium tax and, if applicable, its
961	retaliatory tax for the taxable year giving effect only to the
962	item or items reflected in the decertification adjustment.
963	(l)  Any certified investor who fails to report and timely
964	pay any tax due as a result of the forfeiture of its insurance
965	premium tax credit is in violation of this subsection and is
966	subject to a penalty of 10 percent of any underpayment or
967	delinquent taxes due and payable.
968	(m)  When any taxpayer fails to pay any amount due as a
969	result of the forfeiture of its insurance premium tax credit as
970	provided for in this subsection, on or before the due date as
971	specified in this subsection, interest shall be due on any
972	insurance premium or retaliatory tax deficiency resulting from
973	such forfeiture, at the rate of 12 percent per year from the due
974	date of such amended return until paid.
975	(12)(11)  TRANSFERABILITY.--The premium tax credit
976	established pursuant to this act may be transferred or sold. The
977	Department of Revenue shall adopt rules to facilitate the
978	transfer or sale of such premium tax credits. A transfer or sale
979	shall not affect the time schedule for taking the premium tax
980	credit as provided in this act. Any premium tax credits
981	recaptured shall be the liability of the taxpayer who actually
982	claimed the premium tax credits. The claim of a transferee of a
983	certified investor's unused premium tax credit shall be
984	permitted in the same manner and subject to the same provisions
985	and limitations of this act as the original certified investor.
986	(13)(12)  REPORTING REQUIREMENTS.--The Office of Tourism,
987	Trade, and Economic Development shall report on an annual basis
988	to the Governor, the President of the Senate, and the Speaker of
989	the House of Representatives on or before April 1:
990	(a)  The total dollar amount each certified capital company
991	received from all certified investors and any other investor,
992	the identity of the certified investors, and the total amount of
993	premium tax credit used by each certified investor for the
994	previous calendar year.
995	(b)  The total dollar amount invested by each certified
996	capital company and that portion invested in qualified
997	businesses, the identity and location of those businesses, the
998	amount invested in each qualified business, and the total number
999	of permanent, full-time jobs created or retained by each
1000	qualified business.
1001	(c)  The return for the state as a result of the certified
1002	capital company investments, including the extent to which:
1003	1.  Certified capital company investments have contributed
1004	to employment growth.
1005	2.  The wage level of businesses in which certified capital
1006	companies have invested exceed the average wage for the county
1007	in which the jobs are located.
1008	3.  The investments of the certified capital companies in
1009	qualified businesses have contributed to expanding or
1010	diversifying the economic base of the state.
1011	(14)(13)  FEES.--All fees and charges of any nature
1012	collected by the office pursuant to this act shall be paid into
1013	the State Treasury and credited to the General Revenue Fund.
1014	(15)(14)  RULEMAKING AUTHORITY.--
1015	(a)  The Department of Revenue may by rule prescribe forms
1016	and procedures for the tax credit filings, audits, and
1017	forfeiture of premium tax credits described in this section, and
1018	for certified capital company payments under paragraph (9)(b).
1019	(b)  The commission and the Office of Tourism, Trade, and
1020	Economic Development may adopt any rules necessary to carry out
1021	their respective duties, obligations, and powers related to the
1022	administration, review, and reporting provisions of this section
1023	and may perform any other acts necessary for the proper
1024	administration and enforcement of such duties, obligations, and
1025	powers.
1026	(16)(15)(a)  PUBLIC RECORDS EXEMPTION; CONFIDENTIALITY OF
1027	INVESTIGATION AND REVIEW INFORMATION.--Except as otherwise
1028	provided by this section, any information relating to an
1029	investigation or office review of a certified capital company,
1030	including any consumer complaint, is confidential and exempt
1031	from the provisions of s. 119.07(1) and s. 24(a), Art. I of the
1032	State Constitution until the investigation or review is complete
1033	or ceases to be active. Such information shall remain
1034	confidential and exempt from the provisions of s. 119.07(1) and
1035	s. 24(a), Art. I of the State Constitution after the
1036	investigation or review is complete or ceases to be active if
1037	the information is submitted to any law enforcement or
1038	administrative agency for further investigation, and shall
1039	remain confidential and exempt from the provisions of s.
1040	119.07(1) and s. 24(a), Art. I of the State Constitution until
1041	that agency's investigation is complete or ceases to be active.
1042	For purposes of this subsection, an investigation or review
1043	shall be considered "active" so long as the office, a law
1044	enforcement agency, or an administrative agency is proceeding
1045	with reasonable dispatch and has a reasonable good faith belief
1046	that the investigation may lead to the filing of an
1047	administrative, civil, or criminal proceeding. This section
1048	shall not be construed to prohibit disclosure of information
1049	which is required by law to be filed with the office and which,
1050	but for the investigation, would otherwise be subject to s.
1051	119.07(1).
1052	(b)  Except as necessary to enforce the provisions of this
1053	chapter, a consumer complaint or information relating to an
1054	investigation or review shall remain confidential and exempt
1055	from s. 119.07(1) and s. 24(a), Art. I of the State Constitution
1056	after an investigation or review is complete or ceases to be
1057	active to the extent disclosure would:
1058	1.  Reveal a trade secret as defined in s. 688.002 or s.
1059	812.081.
1060	2.  Jeopardize the integrity of another active
1061	investigation or review.
1062	3.  Disclose the identity of a confidential source. or
1063	4.  Disclose investigative techniques or procedures.
1064	(c)  Nothing in this section shall be construed to prohibit
1065	the office from providing information to any law enforcement or
1066	administrative agency. Any law enforcement or administrative
1067	agency receiving such confidential and exempt information in
1068	connection with its official duties shall maintain the
1069	confidential and exempt status confidentiality of the
1070	information so long as it would otherwise be confidential and
1071	exempt from s. 119.07(1) and s. 24(a), Art. I of the State
1072	Constitution.
1073	(d)  In the event office personnel are or have been
1074	involved in an investigation or review of such nature as to
1075	endanger their lives or physical safety or that of their
1076	families, the home addresses, telephone numbers, places of
1077	employment, and photographs of such personnel, together with the
1078	home addresses, telephone numbers, photographs, and places of
1079	employment of spouses and children of such personnel and the
1080	names and locations of schools and day care facilities attended
1081	by the children of such personnel are confidential and exempt
1082	from s. 119.07(1).
1083	(e)  All information obtained by the office from any person
1084	which is only made available to the office on a confidential or
1085	similarly restricted basis shall be confidential and exempt from
1086	s. 119.07(1). This exemption shall not be construed to prohibit
1087	disclosure of information which is specifically required by law
1088	to be filed with the office or which is otherwise subject to s.
1089	119.07(1).
1090	(f)  If information subject to this subsection is offered
1091	in evidence in any administrative, civil, or criminal
1092	proceeding, the presiding officer may, in his or her discretion,
1093	prevent the disclosure of information which would be
1094	confidential pursuant to paragraph (b).
1095	(17)  CIVIL LIABILITY.--
1096	(g)  A privilege against civil liability is granted to a
1097	person with regard to information or evidence furnished to the
1098	office, unless such person acts in bad faith or with malice in
1099	providing such information or evidence.
1100	(18)  Notwithstanding the provisions of subsection (19),
1101	tax credits provided by this act for which a certified investor
1102	has been vested through the efforts of the certified capital
1103	company may be carried forward pursuant to paragraph (6)(a) only
1104	through calendar years ending December 31, 2017.
1105	(19)  This section shall stand repealed December 31, 2010.
1106	(h)  This subsection is subject to the Open Government
1107	Sunset Review Act of 1995 in accordance with s. 119.15, and
1108	shall stand repealed on October 2, 2005, unless reviewed and
1109	saved from repeal through reenactment by the Legislature.
1110	(16)  CONFIDENTIALITY OF SOCIAL SECURITY NUMBERS.--The
1111	social security number of any customer of a certified capital
1112	company, complainant, or person associated with a certified
1113	capital company or qualified business, is exempt from s.
1114	119.07(1). This subsection is subject to the Open Government
1115	Sunset Review Act of 1995 in accordance with s. 119.15, and
1116	shall stand repealed on October 2, 2005, unless reviewed and
1117	saved from repeal through reenactment by the Legislature.
1118	(17)  Notwithstanding the limitations set forth in
1119	paragraph (7)(a), in the first fiscal year in which the total
1120	insurance premium tax collections as determined by the Revenue
1121	Estimating Conference exceed collections for fiscal year 2000-
1122	2001 by more than the total amount of tax credits issued
1123	pursuant to this section which were used by certified investors
1124	in that year, the Office of Tourism, Trade, and Economic
1125	Development may allocate to certified investors in accordance
1126	with paragraph (7)(a) tax credits for Program Two. The
1127	commission shall establish, by rule, a date and procedures by
1128	which certified capital companies must file applications for
1129	allocations of such additional premium tax credits, which date
1130	shall be no later than 180 days from the date of determination
1131	by the Revenue Estimating Conference. With respect to new
1132	certified capital invested and premium tax credits earned
1133	pursuant to this subsection, the schedule specified in
1134	subparagraphs (5)(a)1.-4. is satisfied by investments by
1135	December 31 of the 2nd, 3rd, 4th, and 5th calendar year,
1136	respectively, after the date established by the commission for
1137	applications of additional premium tax credits. The commission
1138	shall adopt rules by which an entity not already certified as a
1139	certified capital company may apply for certification as a
1140	certified capital company for participation in this additional
1141	allocation. The insurance premium tax credit authorized by
1142	Program Two may not be used by certified investors until the
1143	annual return due March 1, 2004, and may be used on all
1144	subsequent returns and estimated payments; however,
1145	notwithstanding the provisions of s. 624.5092(2)(b), the
1146	installments of taxes due and payable on April 15, 2004, and
1147	June 15, 2004, shall be based on the net tax due in 2003 not
1148	taking into account credits granted pursuant to this section for
1149	Program Two.
1150	Section 2.  This act shall take effect upon becoming a law.

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