FEDC Inside Track For Legislative Affairs: Opening Week–Regular Session, 2009

  

Above:  House Speaker Larry Cretul, R-Ocala, quips during questioning at his first news conference as Speaker after the opening day session of the Florida House March 3, 2009. (House photo by Mark Foley)

 

FEDC Weekly Session Report

The Florida Legislature completed its first week of the 2009 Regular Session with legislative proposals being revealed, presentations on the Governor’s Recommended Budget and a bleak outlook on the expected March 13 revenue estimations, which are anticipated to indicate a revenue shortfall of an additional $5-6 billion.

House and Senate Appropriations committees are waiting on allocations from legislative leadership to begin their work. This week, they received the Budget recommendations from the Governor for the Office of Tourism Trade and Economic Development (“OTTED”).

The Governor’s Budget was based on $66.5 billion in total revenue. The Fiscal Year 2009-2010 total budget recommendation was $157.1 million for OTTED, which includes funding from Recurring General Revenue, Nonrecurring General Revenue, Recurring Trust Funds and Nonrecurring Trust Funds.

Economic incentive funding recommendations include:

• $10 million – Economic Gardening Program
• $45 million – Quick Action Closing Fund
• $10 million – Film and entertainment incentives
• $21 million – Incentives under Qualified Target Industries and Qualified Defense Contractor Tax Refund Programs
• $10 million – Transportation Road Fund
• $3.9 million – Improvement Incentives for Rural Communities and Brownfields

Funding for Partner Organization Recommendations:

• $11.7 million – Enterprise Florida
• $35.5 million – Visit Florida
• $3.8 million – Space Florida
• $2.7 million – Florida Sports Foundation

 

Proposed Economic Development Packages

 

Senate – Wednesday, March 4, 2009

The Senate Select Committee on Florida’s Economy met this week to discuss its Economic Development Draft Legislative Proposal.  Chairman Don Gaetz conducted a workshop, at which he heard feedback and answered Committee members’ questions about the Proposal. 

The procedural plan for the Committee’s legislation has changed from the original announcement during the meeting, inasmuch as a number of the items within this proposal have been filed as individual bills. Those bills will be heard in the Senate Commerce Committee, which is scheduled for Tuesday, March 10 at 2:15 p.m.

The draft proposal includes language regarding the following programs:

• Commercialization incentives
• Entertainment industry economic development incentives
• Florida’s aircraft industry incentives
• Research and development incentives
• Capital Investment in Communities tax credits

To review the Committee packet containing staff analysis for this proposal please click here.

 

House – Wednesday, March 4, 2009

The House Economic Development Policy Committee met on March 4, 2009, and, as part of its agenda, reviewed Proposed Committee Bill EDP-1 Relating to Economic Development. 

EDP-1, which passed the Committee unanimously, will now be assigned a bill number.  The proposal includes tax credit provisions for 30 of the 35 rural Florida counties that have a fiscal restraint.  The bill also amends several sections of Florida law to replace an outdated coding system with the federally-recognized standard coding system used to classify businesses.  It also amends several state economic development programs.

As a result of Florida Economic Development Council (“FEDC”) President and Chief Executive Officer Amy Evancho’s previous appearance before the Committee, a number of FEDC member suggestions are now included in EDP-1’s first draft. 

Ms. Evancho’s extensive presentation provided the Committee with information on issues impacting Florida’s ability to maximize economic development opportunities and, at the same time, gave examples of situations where the State of Florida was unable to secure economic development opportunities. 

She also provided recommendations given to her by FEDC members on the solutions for these issues.  These suggestions were a result of feedback received from FEDC members based on a survey sent out early this year.

Some of the proposed changes in EDP-1 relate to:

• Incentive process timelines
• The Qualified Defense Contractor and Space Flight Contractor Tax Refund Program
• The Qualified Target Industry Tax Refund Program
• Brownfield Redevelopment Bonus Refunds
• Tax benefit incentives
• Rural economic development

Once the bill has a number there will be opportunities to amend the legislation to include additional ideas that may not be included in the first draft. To view PCB EDP-1 and the accompanying staff analysis, click here. 

 

Corporate Income Tax “Glitch” Bill First to Be Passed; Awaits Governor’s Signature

Friday, March 6, 2009

Also known as the corporate income tax “glitch” bill, SB 1112 by Senator Thad Altman became the first bill to be approved by the 2009 Florida Legislature.  After passage by the Senate earlier this week (39Y-1N), the House of Representatives unanimously passed the bill on March 5, 2009 and immediately certified it to Florida Governor Charlie Crist, who is expected to sign it into law quickly.

To view SB 1112, click here.

The bill corrects the bonus depreciation problem created by last year’s passage of a corporate income tax “piggyback” bill.  As passed, SB 1112 requires corporate taxpayers to add back the bonus depreciation amounts allowed under federal law to Florida income, but then allows this amount to be deducted from Florida income over a seven-year period.  Similar legislation is anticipated later in the 2009 Session that will address additional bonus depreciation allowed under the most recent federal stimulus package.

 

Additional Economic Development-Related Bills Heard This Week:

Public Transit

EDCA-1 by the Economic Development & Community Affairs Policy Council – Provides definitions relating to commuter rail service, rail corridors, and railroad operation for purposes of rail program within the Florida Department of Transportation (“DOT”); revises time period within which the DOT must update the rail system plan; requires a status report to Legislature to accompany the plan; provides additional duties for the DOT relating to a regional rail system plan; authorizes the DOT to assume certain liability on the rail corridor; authorizes the DOT to indemnify and hold harmless freight rail operator when the DOT acquires a rail corridor from freight rail operator; provides for the allocation of risk; authorizes the DOT to purchase and provide insurance in relation to rail corridors; authorizes marketing and promotional expenses; extends provisions to other governmental entities providing commuter rail service on the public right-of-way.

EDCA-1 has been assigned bill number HB 7009.

 

SB 1212 by Senator Lee Constantine Relating to Public Transit – Provides definitions relating to commuter rail service, rail corridors, and railroad operation for purposes of the rail program within the DOT. Revises the time period within which the DOT must revise the rail system plan and requires a report.  The bill also authorizes the DOT to indemnify and a hold a railroad company harmless when the DOT acquires a rail corridor from the company.

SB 1212 passed the Senate Transportation Committee 6Y-3N.  A number of amendments were filed to the bill but they were either defeated or withdrawn.  This bill is on the Judiciary Committee agenda for Wednesday, March 11, 2009.

 

Economic Development Bills:

 

HB 73 by Representative Rob Schenck Relating to Permit Process For Economic Development Projects – Designates act “Mike McHugh Act;” requires the Florida Department of Environmental Protection and water management districts to adopt programs to expedite processing of permits for certain economic development projects; requires municipalities and counties to identify certain businesses by commission resolution; provides a timeframe for permit application approval or denial.  Effective Date:  July 1, 2009

HB 73 was unanimously voted favorable by the Government Affairs Policy Committee and will be heard in the Agriculture and Natural Resources Policy Committee on Tuesday, March 10, 2009.

 

SB 7056 by the Commerce Committee Relating to Innovation Incentive Program; expands the definition of “project” to include alternative and renewable energy applicants. Authorizes the waiver or reduction of requirements relating to matching funds for alternative and renewable energy projects. Requires that the OTTED and the recipient of an award enter into a contract setting forth conditions for the payment of incentive funds.

This bill was officially filed and will now be referred to as SB 2034.

 

 

The following bills will be heard during the week of March 9 – March 13, 2009:

 

SB 350 by Senator Mike Haridopolis Relating to Entertainment Industry Economic Development; revises the entertainment industry financial incentive program to provide corporate income tax and sales and use tax credits to qualified entertainment entities, rather than reimbursements from appropriations.  Revises provisions relating to definitions, creation and scope, application procedures, approval process, eligibility, required documents, qualified and certified productions, and annual reports.

SB 350 is on the Senate Commerce Committee agenda for Tuesday, March 10 at 2:15 p.m.

 

SB 360 by Senator Mike Bennett Relating to Growth Management; Cites this act as the “Community Renewal Act.” Extends dates relating to requirements for adopting amendments to the capital improvements element of a local comprehensive plan.  Provides legislative findings relating to transportation concurrency exception areas.  Revises provisions relating to impact fees and State review of comprehensive plans.

SB 360 is on the Senate Policy & Steering Committee on Ways & Means agenda for Tuesday, March 10 at 4:30 p.m.

 

SB 634 by Senator Don Gaetz Relating to Research Commercialization Matching Grant Program; Creates the Florida Research Commercialization Matching Grant Program. Designates an existing committee, or subcommittee thereof, within Enterprise Florida, Inc., for certain purposes.  Provides for awards, eligibility guidelines for applicants and program administrative costs.  Designates a fiduciary entity.  Requires the Office of Program Policy and Government Accountability to conduct a review of the matching grant program. Approrpriates $4 million dollars. 

SB 634 is on the Senate Commerce Committee agenda for Tuesday, March 10 at 2:15 p.m.

 

SB 768 by Senator Steve Oelrich Relating to Tax Credits for Research and Development; Authorizes certain businesses that incur certain research and development expenses in Florida to receive a tax credit against the corporate income tax.  Specifies the amount of the tax credit.  Limits the use of the credit. Permits the carryover of unused tax credits for a specified period. Permits the sale or assignment of unused tax credits, subject to the approval of the Department of Revenue, etc

On Senate Commerce Committee agenda for Tuesday, March 10 at 2:15 p.m.

 

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