FEDC Inside Track for Legislative Affairs: Economic Development-Related Senate Interim Project Reports and Issue Briefs

Oct 30, 2008

 

The Florida Senate has issued the following economic development-related Interim Project Reports and Issue Briefs:

 

Committee on Commerce

 

Review of OTTED’s Oversight of the Innovation Incentive Grant Program

This report examines the background and current status of the Innovation Incentive Program, and explores the challenges of monitoring the program and assessing its long-term benefits to the state of Florida. Based on document research and interviews, this report emphasizes the need to:

  • Provide additional oversight of the program
  • Develop additional criteria to measure the impact of the state’s investment in an innovative economy
  • Maximize current and future investments as Florida’s budget constricts while other states become more competitive in their industry recruitment efforts.

 

Open Government Sunset Review of Section 288.9551, F.S., Scripps Florida Funding Corporation

In 2003, the Legislature and Governor appropriated $310 million to be used by California-based (the) Scripps Research Institute (“TSRI”) to open a Florida research facility and created the nine-member Scripps Florida Funding Corporation (“corporation”) to release the funds to TSRI as it met job-creation and other specified measures.  Additionally, the Legislature and Governor created public records and public meeting exemptions for certain records or information provided by TSRI or its Florida facility to the corporation or the Governor’s Office of Tourism, Trade, and Economic Development (“OTTED”).  These exemptions are in s. 288.9551, F.S.

This report examines policy considerations related to Florida’s recruitment and support of TSRI. Survey responses from the corporation, TSRI, and TSRI’s Florida facility indicate that without the confidentiality protections of s. 288.9551, F.S., the research institute’s ability to competitively conduct operations in Florida would be impaired.

 

Efforts to Address Workforce Issues Related to the Space Program      

The last mission for the Space Shuttle program is scheduled for March 2010. The “moon to Mars” successor program (Constellation) is currently scheduled to begin in 2015. The intervening period is referred to as the “shuttle gap,” in which a number of employees in the space industry may lose their current positions. In response to this anticipated shuttle gap, the 2008 Florida Legislature provided $1.25 million through the Agency for Workforce Innovation (“AWI”) to the Brevard Workforce Development Board (“BWDB”) for services focused on retention and retraining of personnel employed in the space industry. In addition, the BWDB secured other funds to supplement and to provide related services.

This Issue Brief outlines standard services offered through One-Stop Centers throughout the state and profiles the plan developed by BWDB and WFI.  In addition, efforts by other organizations to address the shuttle gap are identified.

 

Employ Florida Banner Centers 

This report provides overviews of workforce education coordinated through the Florida Department of Education; the general missions of Workforce Florida, Inc., and the Agency for Workforce Innovation, and the concept of the Employ Florida Banner Centers; and outlines the process for selection and development of Employ Florida Banner Centers, as well as provides WFI’s profiles of the respective Employ Florida Banners Centers.

 

Committee on Finance and Tax

 

Review of Tax Law Regarding Aircraft Temporarily in State For Training and Fractional Aircraft Ownership

Some non-residents are concerned about being assessed use tax if they come to Florida with a plane that was recently purchased out of state. Concern also has been raised about taxing a non-resident’s aircraft returning to Florida for flight training purposes within the first six months of ownership. Imposing use tax (and penalties) on these planes is thought to unduly discourage beneficial economic activity. A related concern has been raised about taxing airplane sales made by companies that market and manage fractional aircraft ownership programs. When these airplanes are sold and used in Florida, they do not qualify for a sales tax exemption. Industry members claim they are being discouraged from operating in Florida because of the lack of a sales tax exemption.

During the 2008 regular legislative session, several bills were filed to deal with these concerns. Two bills providing use tax exemptions for aircraft used for flight training moved forward but ultimately failed

 

Committee on Transportation

 

Freight Transportation Infrastructure:  Assessing the Need for Statewide Coordination

According to the American Association of State Highway and Transportation Officials, freight infrastructure planning, especially for global freight moves is not currently well coordinated:  The ships are owned by private, international companies. The ports are publicly owned. The railroads serving the ports are private while the local streets reaching the ports are controlled by local municipal governments. Major routes at or near the ports generally are controlled by the state. No entity gathers comprehensive data about the ports, their connections, their bottlenecks, their needs or their plans. This vast, sprawling, critical supply network is managed by a collection of entities who do not share data, plans or needs assessments as often as should be the case. The private shippers and carriers’ ability to generate economic benefits from enhanced productivity is intertwined with their ability to move products or their components between their origins and destinations. However, the development, maintenance, operation, and expansion of transportation facilities which allow for enhanced productivity, often fall predominantly within the responsibility of the public sector. In addition, public policy in the form of governmental regulation and investment decisions affects the operations of shippers and carriers as they make logistical decisions.

This report will present basic information on freight transport in order to illuminate the state’s process for coordinating the development of the freight transportation infrastructure. Recommendations to the Legislature are offered for the purpose of facilitating a statewide freight policy to maximize efficiency of the entire system used to transport goods from their point of origin to their destination.

 

 

Should you have any questions or comments, please contact Tracy Mayernick at Colodny Fass.

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