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.
   34  Be It Enacted by the Legislature of the State of Florida:
   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.
  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.—
  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.
  247  However, an economic development agency may disclose in the
  248  annual incentives report required under s. 288.907 the 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.