FEDC Inside Track For Legislative Affairs: Week Four–Regular Session, 2009
Mar 30, 2009
Above: State Representative Anitere Flores defends CS/HB 903 relating to attorney’s fees in workers’ compensation claims as the measure was considered on the House floor this past week.
FEDC Weekly Session Report-Week 4
The fourth week of the 2009 Florida Legislative Session ended with the first round of Budget Committee Chairmen’s proposals being released, while the final meetings of all Florida House of Representatives Committees were held.
The House Councils will continue to meet as scheduled, but regular committees will meet only if House Speaker Larry Cretul’s office calls for them to do so. Florida Senate Committees will continue to meet on a regular basis.
Economic Development Packages
This bill would revise industry code designations; create requirements and procedures for economic development incentive application process; provide time periods and requirements for certification for economic development incentive applications; provide duties and responsibilities of Enterprise Florida, Inc. and the Florida Office of Tourism, Trade and Economic Development (“OTTED”); and revise county population criteria for loans from the Rural Community Development Revolving Loan Fund.
HB 7031 passed the House Economic Development and Community Affairs Policy Council (“Council”) unanimously. As amended by the Council, the bill now contains three of the four Florida Economic Development Council (“FEDC”) Policy priorities for the 2009 Legislative Session, which include:
- Removing outdated Standard Industrial Classification (“SIC”) codes from Florida Statutes and replacing them with the North American Industry Classification System codes, which have been the federal standard for business classification since 1997;
- Providing for an economic-stimulus exemption for the Qualified Target Industry (“QTI”) Incentive Program for tax refund claims between January 1, 2009 and July 1, 2011 to alleviate the severe economic downturn; and
- Providing that, under certain circumstances, any corporate entity entitled to receive a tax credit or incentive, but unable to use it because of its corporate status may transfer all, or a portion of that credit or incentive to another corporate entity within the same corporate family. The bill limits the transfer to entities that are subject to the same tax for which the credit or incentive is allowed.
Originally, the Qualified Target Industry extension ended July 1, 2010. With an amendment offered by Council Chairman Dave Murzin (R-Pensacola), the FEDC was successful in changing the date to July 1, 2011. The bill will now proceed to the House Finance and Tax Council.
CS/SB 2034 relating to Economic Development by the Senate Committee on Commerce
CS/SB 2034, the Senate companion bill to HB 7031, now goes to the Senate Committee on Government Oversight and Accountability (“Committee”), which is chaired by Senator Mike Haridopolis (R-Melbourne). However, it has not yet been placed on that Committee’s agenda.
Although the bills are not identical, they will continue to merge throughout the Committee and Council process. The FEDC will be working to add its fourth priority: removal of Legislative Budget Commission approval on Quick Action Closing Fund projects.
FEDC also will be working to make sure the three existing priorities remain within the bill.
Budget Proposals
The House and Senate Budget Committee Chairmen have released their recommended budget proposals, which comprise very early numbers that will continue to change throughout the next few weeks. Below are the initial budget recommendations for OTTED:
Florida Senate Recommendations:
- Transportation Road Fund–$21,500,000
- Quick Action Closing Fund–$31,923,000
- Economic development tools (incentive programs such as QTI)–$21,137,500
- Enterprise Florida operational funding–$11,400,000
- Film and entertainment incentives–$5,150,000
- Military base protection–$1,000,000
- Rural community development–$1,300,000
- Space Florida–$4,000,000
Florida House of Representatives Recommendations:
- Transportation Road Fund–$20,000,000
- Quick Action Closing Fund–$10,000,000
- Economic development tools (incentive programs such as QTI)–$21,137,500
- Enterprise Florida operational funding– $11,717,935
- Film and entertainment incentives–$12,000,000
- Military base protection–$959,968
- Rural community development–$1,300,000
- Space Florida–$3,839,943
Workforce Florida, Inc. Legislative Update
Workforce Florida 2009-2010 Budget
Both the Senate Committee on Transportation and Economic Development Appropriations (“S-TED”) and the House of Representatives Transportation and Economic Development Appropriations Committee (“H-TED”) met on Thursday, March 26 to release their budget recommendations for Fiscal Year (“FY”) 2009-2010.
The S-TED, chaired by Senator Mike Fasano (R-New Port Richey), has proposed a $5 million recurring cut to the Quick Response Training (“QRT”) Program for the purpose of restoring cuts made to the State’s School Readiness Program. Such a cut would deal a devastating blow to QRT, which is popular among businesses that create new jobs and are a vital part of the State’s economic development tool kit.
The H-TED, chaired by Representative Richard Glorioso (R-Plant City), has proposed funding the QRT program in 2010 with $2 million from the State Penalty and Interest Trust Fund and recommended a $3 million non-recurring cut to QRT in order to restore reductions to the School Readiness Program. Recognizing that the QRT grant program is instrumental to the State’s business expansion efforts, Representative Glorioso also said he would try to find additional funding, if possible, to close the gap that could be created by QRT cuts.
From July 2000 to June 2008, Workforce Florida awarded more than $59 million in QRT Florida workforce training grants, including money recaptured from unused awards and directed to new companies. For every $1 in public funds invested in QRT, companies have invested $14.35 in training for their employees. An analysis by the Florida Education and Training Placement Information Program shows workers trained using QRT grants experienced an average wage increase of 116 percent during the first year after training.
Meanwhile, consistent with the Workforce Florida Board of Directors’ Legislative Policy recommendations, Workforce Florida’s operations are authorized in full by both the Florida Senate and House of Representatives.
FEDC lead lobbyist Tracy Mayernick met with Senator Fasano and Representative Glorioso last week and looks forward to continuing to work with them on a budget that supports Florida’s workforce development needs.
Workforce Florida Priority Legislation
CS/CS/SB 1062 by the Senate Committee on Transportation and Economic Development Appropriations and the Senate Commerce Committee and CS/HB 641 by the House Economic Development Policy Committee relating to Unemployment Compensation
SB 1062 and HB 641 require Professional Employer Organizations to report the same employment and wage data on their clients that is required of all other Florida employers, which includes employment and wage information by industry and geographic location.
SB 1062 has been placed on the calendar for second reading in the Senate.
The information in this update was provided by Workforce Florida.
Bills Heard During Week Four of the 2009 Legislative Session
HB 73 by Representative Robert Schenck (R-Spring Hill) and SB 852 by Senator Fasano relating to Expedited Permitting Processes for Economic Development Projects
Designated as the “Mike McHugh Act,” these bills would require the Florida Department of Environmental Protection and water management districts to adopt programs to expedite processing of permits for certain economic development projects and require municipalities and counties to identify certain businesses by commission resolution. The bill also would provide a time frame for permit application approval or denial.
HB 73 passed the House of Representatives Policy Council unanimously. It will now proceed to the full House of Representatives, where it has been placed on the calendar for second reading. The Senate companion bill, SB 852, passed the Senate Environmental Preservation and Conservation Committee by 5-1 and will now proceed to the Senate Committee on Community Affairs.
CS/CS/1st Eng SB 360 relating to Growth Management by Senator Mike Bennett (R-Bradenton)
Also known as the “Community Renewal Act,” this bill would extend dates relating to requirements for adopting amendments to capital improvement elements of a local comprehensive plan. SB 360 also would provide legislative findings relating to transportation concurrency exception areas and revise provisions relating to the State’s review of comprehensive plans. Exemptions from the development-of-regional-impact program would be provided for dense urban land areas.
SB 360 was heard in the full Senate and rolled over to third reading with the adoption of two amendments, 885062 and 141460. The bill is on the third reading calendar for Thursday, April 2.
CS/HB 469 relating to Tax on Sales, Use and other Transactions by the House Economic Development Policy Council
CS/HB 469, which would impose maximum limitation on the amount of tax collected on the sales of aircraft or boats in Florida, passed the House Economic Development and Community Affairs Policy Council by 18-2 and will now go to the House Finance and Tax Council.
CS/HB 485 by the House Economic Development Policy Committee and CS/SB 1502 by the Senate Committee on Commerce relating to Fast Track Economic Stimulus for Small Businesses
These bills would establish the New Markets Development Program and provide for tax credits for making qualified equity investments. The bills also would provide requirements and limitations for such credits; specify application and certification requirements, and OTTED procedures to qualify equity investments as eligible for tax credits. Applicable Department of Revenue duties and responsibilities in relation to application fees would be outlined. The bill also would limit the amount of investments that OTTED may certify.
The House of Representatives Economic Development and Community Affairs Policy Council passed HB 485 unanimously and it will now go to the House Finance and Tax Council. SB 1502 will be heard in the Senate Committee on Community Affairs on Tuesday, March 31.
Should you have any questions or comments, please contact Tracy Mayernick at Colodny Fass.
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