Florida Senate - 2013 SB 572 By Senator Sobel 33-00962-13 2013572__ 1 A bill to be entitled 2 An act relating to reporting requirements for economic 3 development programs; creating s. 288.076, F.S.; 4 providing definitions; requiring the Department of 5 Economic Opportunity to publish on a website specified 6 information concerning state investment in economic 7 development programs; providing procedures and 8 requirements for reviewing, updating, and 9 supplementing the published information; requiring the 10 department to publish at specified dates twice per 11 year a timeline demonstrating the progress of Quick 12 Action Closing Fund projects; requiring the department 13 to publish certain confidential information pertaining 14 to beneficiary businesses upon expiration of a 15 specified confidentiality period; requiring the 16 department to publish certain reports concerning 17 businesses that fail to complete tax refund agreements 18 under the tax refund program for qualified target 19 industry businesses; requiring the department to 20 provide beneficiary businesses with the opportunity to 21 delay publication of information; providing penalties; 22 providing for construction and legislative intent; 23 requiring the Office of Economic and Demographic 24 Research to annually establish a methodology and 25 formulas for specified calculations to be performed by 26 the department; authorizing the department to adopt 27 rules; amending s. 288.075, F.S.; limiting 28 applicability of an exemption from public records 29 requirements to allow an economic development agency 30 to disclose certain information pertaining to taxes 31 paid by businesses participating in economic incentive 32 programs; providing an effective date. 33 34 Be It Enacted by the Legislature of the State of Florida: 35 36 Section 1. Section 288.076, Florida Statutes, is created to 37 read: 38 288.076 Return on investment reporting for economic 39 development programs.— 40 (1) As used in this section, the term: 41 (a) “Beneficiary business” means a corporation, 42 partnership, or person participating in a program administered 43 by the department that has entered into an agreement with an 44 economic development agency to receive a state investment. 45 (b) “Project” means any business undertaking by a 46 beneficiary business. 47 (c) “Project award date” means the earlier of either the 48 date a beneficiary business enters into an agreement with an 49 economic development agency to receive a state investment, or 50 the date an economic development agency awards a state 51 investment to a beneficiary business, whether payable 52 immediately, payable in the future, or payable upon satisfaction 53 of agreed upon conditions. 54 (d) “State investment” means any state grants, tax 55 exemptions, tax refunds, tax credits, or other state incentives 56 provided to a business under a program administered by the 57 department, including the capital investment tax credit under s. 58 220.191. 59 (2) The department shall maintain a website for the purpose 60 of publishing the information described in this section. The 61 information required to be published under this section must be 62 provided in a format accessible to the public which enables 63 users to search for and sort specific data and to easily view 64 and retrieve all data at once. Where specific identifying 65 information is temporarily withheld, such as the name of a 66 beneficiary business, the department shall assign a unique code 67 in order to enable the public to properly track information 68 pertaining to the business. 69 (3) Within 48 hours after each project award date, the 70 department shall collect and publish the following information 71 pertaining to each project: 72 (a) General information.— 73 1. The program or programs through which state investment 74 is being made. 75 2. The maximum potential value of the state investment in 76 the project. 77 3. The target industry or industries, and any high-impact 78 sectors implicated by the project. 79 4. The county or counties that will be substantially 80 impacted by the project. 81 5. The total value of local financial commitment and 82 support for the project. 83 (b) Beneficiary business information.— 84 1. The location of the beneficiary business’s headquarters 85 or, if a subsidiary, the headquarters of the parent company. 86 2. The number of permanent full-time employees employed by 87 the beneficiary business, including, where applicable, the 88 number of permanent full-time employees employed by the parent 89 company, and whether the beneficiary business qualifies as a 90 small business as defined in s. 288.703. 91 3. The North American Industry Classification System 92 classifications of the type of business activities or products 93 directly generated by the project. 94 4. The date of the project award date. 95 5. The expected duration of the project. 96 6. The anticipated date when the beneficiary business will 97 claim the last state investment. 98 (c) Project performance goals.— 99 1. The incremental direct jobs attributable to the project, 100 identifying the number of jobs to be generated and the number of 101 jobs to be retained by the project, and the lowest annual wage, 102 highest annual wage, and median annual wage of persons holding 103 such jobs. 104 2. The net indirect and induced incremental jobs in the 105 state to be generated by the project, including the lowest 106 annual wage, highest annual wage, and median annual wage of 107 persons holding such jobs, and a brief but specific description 108 of the methodology used to perform this calculation, including 109 whether and how multipliers were used. 110 3. The incremental direct capital investment in the state 111 to be generated by the project. 112 4. The net indirect and induced incremental capital 113 investment in the state to be generated by the project, and a 114 brief but specific description of the methodology used to 115 perform this calculation, including whether and how multipliers 116 were used. 117 5. The incremental direct tax revenue to the state to be 118 paid by the beneficiary business to the state. 119 6. The net indirect and induced incremental tax revenue 120 paid to the state to be generated by the project, and a brief 121 but specific description of the methodology used to perform this 122 calculation, including whether and how multipliers were used. 123 (4) On June 30 and December 31 of each year, the department 124 shall: 125 (a) Amend the information collected and published on its 126 website pursuant to paragraphs (3)(a) and (3)(b) to accurately 127 reflect any changes in the published information since the 128 project award date. 129 (b) Publish on its website the total value of state 130 investment disbursed to date for each project. 131 (c) Collect and publish on its website verified results 132 with respect to the performance goals published pursuant to 133 paragraph (3)(c) for each project. 134 135 However, a project is not required to comply with this 136 subsection until the next scheduled update occurring at least 60 137 days after the project award date. 138 (5) On June 30 and December 31 of each year, the department 139 shall publish a timeline demonstrating the progress of each 140 project implemented under the Quick Action Closing Fund pursuant 141 to s. 288.1088. If any of the following has occurred, the 142 department shall publish the date or dates upon which each 143 occurred: 144 (a) The department received a completed application. 145 (b) The department’s recommendation was transmitted to the 146 Governor for approval or disapproval. 147 (c) The Legislature, where required by s. 288.1088, acted 148 to approve or change the project. 149 (d) The department and the business entered into a contract 150 for payment from the fund. 151 (e) The economic development agency validated the 152 beneficiary business’s performance. 153 (f) Funds were released to the beneficiary business. 154 (6)(a) Within 48 hours after expiration of the period of 155 confidentiality provided under s. 288.075, the department shall 156 publish both the name of the beneficiary business and a copy of 157 the contract or agreement described in s. 288.061, redacted to 158 protect the beneficiary business from disclosure of information 159 that remains confidential or exempt by law. 160 (b) Within 48 hours after submitting any report of findings 161 and recommendations made pursuant to s. 288.106(7)(d) concerning 162 a business’s failure to complete a tax refund agreement pursuant 163 to the tax refund program for qualified target industry 164 businesses, the department shall publish such report. 165 (7) For projects completed before July 1, 2013, the 166 department shall compile and, by July 1, 2014, shall publish the 167 information described in subsections (3), (4), and (5), to the 168 extent such information is available and applicable. 169 (8) Before publication of the information described in 170 subsections (3) and (4), the economic development agency shall 171 provide the beneficiary business an opportunity to request a 172 delay in the publication of some, but in no case all, of the 173 information that the department is required to publish. To make 174 such a request, the beneficiary business must identify the 175 information, specify how long it requests the publication of the 176 information to be delayed, and describe the circumstances 177 necessitating delayed publication of the information. 178 Circumstances necessitating delayed publication may include 179 those circumstances in which the premature revelation of the 180 business activities of the beneficiary business threatens the 181 ability of the beneficiary business to purchase real property at 182 market prices. Upon a finding by the economic development agency 183 that the disclosure of information so described would impede the 184 beneficiary business’s efforts to locate, relocate, expand, or 185 begin its business activities in the state, the department shall 186 delay publication of only that information justified by the 187 finding, and only for such time as is justified by the finding. 188 (9) Any person who is an employee of an economic 189 development agency who violates this section commits a 190 misdemeanor of the second degree, punishable as provided in s. 191 775.082 or s. 775.083. 192 (10) The provisions of this section which restrict the 193 department’s publication of information are intended only to 194 limit the information that the department may publish on its 195 website and shall not be construed to create an exemption from 196 public records requirements under s. 119.07(1) or s. 24(a), Art. 197 I of the State Constitution. 198 (11) The Office of Economic and Demographic Research shall 199 annually establish a methodology for calculation of the state’s 200 return on investment, including formulas for indirect and 201 induced job creation, incremental capital investment, and 202 increased tax revenue. The department shall publish the 203 methodology and formulas as soon as they are available and shall 204 use the methodology and formulas in collecting and publishing 205 the information required to be published by this section. 206 (12) The department may adopt rules to administer this 207 section. 208 Section 2. Paragraph (a) of subsection (6) of section 209 288.075, Florida Statutes, is amended to read: 210 288.075 Confidentiality of records.— 211 (6) ECONOMIC INCENTIVE PROGRAMS.— 212 (a) The following information held by an economic 213 development agency pursuant to the administration of an economic 214 incentive program for qualified businesses is confidential and 215 exempt from s. 119.07(1) and s. 24(a), Art. I of the State 216 Constitution for a period not to exceed the duration of the 217 incentive agreement, including an agreement authorizing a tax 218 refund or tax credit, or upon termination of the incentive 219 agreement: 220 1. The percentage of the business’s sales occurring outside 221 this state and, for businesses applying under s. 288.1045, the 222 percentage of the business’s gross receipts derived from 223 Department of Defense contracts during the 5 years immediately 224 preceding the date the business’s application is submitted. 225 2. An individual employee’s personal identifying 226 information that is held as evidence of the achievement or 227 nonachievement of the wage requirements of the tax refund, tax 228 credit, or incentive agreement programs or of the job creation 229 requirements of such programs. 230 3. The amount of any of the following which does not appear 231 as the incremental amount of taxes paid for purposes of 232 reporting the state’s per project return on investment as 233 required under s. 288.076 or as the aggregate of taxes paid per 234 program for purposes of the annual incentives report required 235 under s. 288.907: 236 a. Taxes on sales, use, and other transactions paid 237 pursuant to chapter 212; 238 b. Corporate income taxes paid pursuant to chapter 220; 239 c. Intangible personal property taxes paid pursuant to 240 chapter 199; 241 d. Insurance premium taxes paid pursuant to chapter 624; 242 e. Excise taxes paid on documents pursuant to chapter 201; 243 f. Ad valorem taxes paid, as defined in s. 220.03(1); or 244 g. State communications services taxes paid pursuant to 245 chapter 202. 246 247 However, an economic development agency may disclose in the 248 annual incentives report
required under s. 288.907the aggregate 249 amount of each tax identified in this subparagraph and paid by 250 all businesses participating in each economic incentive program 251 and, for purposes of reporting the state’s per project return on 252 investment as required under s. 288.076, may disclose the 253 incremental amount of taxes paid. 254 Section 3. This act shall take effect July 1, 2013.