FEDC Inside Track For Legislative Affairs: Week of April 7-11

        

Left/Top:  Rep. Don Davis, R-Jacksonville Beach, comments to colleagues on the House floor May 3, 2007, in Tallahassee, Florida.

Right/Below:  In recognition of their esteemed colleague, House members raise their drink containers high on the House floor in reponse to a toast in celebration of the life of their colleague Rep. Don Davis, R-Jacksonville Beach, Thursday, April 10, 2008, in Tallahassee, Florida. Rep. Davis, elected to the House in 2000, passed on a few hours earlier as a result of brain cancer. With flowers and Davis’ draped House floor seat, right; shown raising coffee cups are Rep. Julio Robaina, R-Miami, left, and Rep. Carl Domino, R-Juno Beach, center.

 

FEDC Weekly Legislative Update

Week 6 – April 7- 11, 2008

Tallahassee received sad news this week as Economic Development Committee Chairman Representative Don Davis passed away at age 76.  A strong supporter of economic development, a wonderful legislator, husband and friend, Representative Davis will be missed greatly and remembered fondly for the many contributions he has made to the State of Florida.

With three weeks remaining in Florida’s Regular Legislative Session, the pace has significantly increased. Bills are being moved through the process and both Chambers have voted on the budget.  The Legislature is now in the proper posture for conference committees to begin meeting to negotiate their differences and create a balanced budget.

 

BUDGET

 

SB 2900 – Relating to Appropriations

The Senate version of the budget passed the Senate Floor 26 Y/ 12 N on Wednesday, April 9. 

Senator Mike Fasano filed an amendment to SB 2900 that decreased the Quick Action Closing Funding by $2.5 million. That reduction is reflected below. The following highlights are not intended to be a comprehensive review of the budget. To view additional items click here.

• Economic transportation projects (Road Fund)  $60 million
• Quick Action Closing Fund (QAC) $12.5 million
• Economic development tools $21.762 million
• Innovation Incentive Program $25 million
• Space Florida $3 million
• Enterprise Florida $7.3 million
• Film and entertainment $800,000
• Rural infrastructure $0
• Defense infrastructure $0
• Military base protection $2 million
• Rural community development $1.3 million

Workforce Florida Programs have funding at the following levels:

• Quick Response Training (QRT) $7 million
• Incumbent Worker Training (IWT) $2 million
• Banner Centers  $2 million

 

HB 5001– Relating to Appropriations

The House version of the budget passed the House Floor 72 Y/ 42 N on Thursday, April 10. There were no amendments passed on the floor to effect the numbers listed below. The following highlights are not intended to be a comprehensive review of the budget. To view additional items click here.

• Economic transportation projects (Road Fund)  $40 million
• Quick Action Closing Fund (QAC) $33.6 million
• Economic development tools $21.762 million
• Innovation Incentive Program $0
• Space Florida $4.5 million
• Enterprise Florida $12.1 million
• Entertainment industry incentive $9 million
• Rural infrastructure $7 million
• Defense infrastructure $11.6 million
• Military base protection $500,000
• Rural community development $1.5 million

Workforce Florida Programs have funding at the following levels:

• Quick Response Training (QRT) $5 million
• Incumbent Worker Training (IWT) $2 million
• Banner Centers  $0

The Legislature is scheduled to begin its Budget Conference meeting on Tuesday, April 15 from 8:00 p.m. to 9:00 a.m.  It is likely that Conference Members will meet throughout the week during the evenings since some will be unable to work over the weekend due to the Passover holiday.  Based on how much progress is made, this week will determine if the conference schedule will continue through the following week.

 

Economic Development Bills Moving Through The Legislative Process

Now having been heard in their first committees of reference, various economic development bills continue to move through the remainder of their respective committee references. This week’s FEDC Inside Track report will organize these bills by their categories of reference, rather than by the committees in which they were heard.

 

SB 928 Relating to Economic Development
Sponsored by: Senator Alex Diaz de la Portilla (R-Miami)

PCS/SB 928 creates the Small Business Regulatory Relief Act, establishes a Small Business Regulatory Review Advisory Council (“Council”) and a Small Business Advocate (“Advocate”).  The bill adds a number of procedural and reporting requirements related to agency rulemaking under ch. 120, F.S.  The Council’s duties would include providing state agencies with input regarding proposed rules or programs that may adversely affect small business, and reviewing agency rules in conjunction with the agency sunset review process in s. 11.991, F.S.

SB 928 passed the Commerce Committee unanimously and now will go to the Finance and Tax Committee chaired by Senator Mike Haridopolis (R-Melbourne).

 

SB 930 Relating to Economic Development
Sponsored by: Senator Alex Diaz de la Portilla (R-Miami)

SB 930 Designates the Florida Small Business Development Center Network as the principal business assistance organization for small businesses in the State.  The bill, which is effective upon becoming law, passed the Commerce Committee unanimously and now will go to the Finance and Tax Committee chaired by Senator Haridopolis

 

HB 687 Relating to Service-Disabled Veteran Business Enterprises
Sponsored by Representative Bill Proctor (R- St. Augustine)

HB 687 creates a certification process within the Florida Department of Management Services (“DMS”) for small business enterprises owned and operated by service-disabled veterans. The certification process is substantially similar to the certification process implemented by DMS for minority business enterprises (“MBEs”).  Potential benefits of certification include business promotion through the MyFloridaMarketPlace.com online purchasing system, first-tier referrals to state agencies, special email notices about purchasing opportunities, networking activities, and technical assistance training.

The bill also creates a “tie-breaker” contracting preference for certified Service-Disabled Veteran Business Enterprises (“SDVBEs”) by requiring a state agency to award a procurement or contract to the certified SDVBE when considering two or more bids, proposals, or replies for the procurement of commodities or contractual services, at least one of which is from a certified SDVBE, that are equal with respect to all relevant
considerations.  However, if a certified SDVBE and one or more certified SDVBEs or businesses eligible for another statutory vendor preference, such as a MBE, and they submit bids or proposals that are equal with respect to all relevant considerations, the State agency must award the contract or proposal to the business having the smallest net worth.

HB 687 passed the House Policy and Budget Council unanimously and has been placed on the second reading calendar, which indicates that it has passed through all committees of reference and is ready to be heard on the House Floor.  There, the bill will be added to the Special Order Calendar, where it will be introduced, potentially amended, and voted upon for final passage.

 

HB 747 Relating to Charter County Transit Systems Surtax
Sponsored by Representative Dennis Ross (R-Lakeland)

Current law authorizes counties that adopted their charter prior to January 1, 1984, and each county having a consolidated government, to levy the charter county transit system surtax upon approval by majority of the electorate.  HB 747 would allow all charter counties to implement the surtax following a referendum. The bill also changes the designation of the surtax from transit to transportation and authorizes funds to be used for transit.

HB 747 passed the House Government Efficiency and Accountability Council unanimously and now will go to the House Policy and Budget Council, which is chaired by Representative Ray Sansom (R- Ft. Walton Beach).

 

HB 217 Relating to Tax on Sales, Use, and Other Transactions
Sponsored by Representative Thad Altman (R- Melbourne)

HB 217 creates an exemption from the state sales and use tax for:
• An aircraft that primarily will be used in a fractional aircraft ownership program; and
• Parts or labor used in the completion, maintenance, repair, or overhaul of an aircraft for primary use in a fractional aircraft ownership program.
Additionally, CS/HB 217 provides for a maximum tax of $300 on the sale or use in this state of a fractional aircraft ownership interest in aircraft pursuant to a fractional ownership program. This maximum tax applies to the total consideration paid for the fractional ownership interest, including amounts paid by the fractional owner as monthly management or maintenance fees.

HB 217 defines a “fractional aircraft ownership program” as a program that meets the requirements in the Federal Aviation Administration regulation Title 14, chapter I, part 91, subpart K, C.F.R., except that the program must include a minimum of 25 aircraft owned or leased by the business or affiliated group providing the program.

HB 217 passed the House Economic Expansion & Infrastructure Council 11 Y/ 3 N and has been placed on the House Policy and Budget Council agenda for Monday, April 14 if received.  If not, it will be heard on Tuesday, April 15.

 

HB 293 Relating to Corporate Income Tax Credits
Sponsored by Representative Will Weatherford (R-Zephyrhills)

HB 293 Creates the New Markets Tax Credit Program. The Program provides state tax credits for corporate income tax, under s. 220.11, F.S., and premium insurance tax, under s. 624.509, F.S., for qualified investments in Florida low-income communities.

The intent of HB 293 is to create a state New Markets Tax Credit program similar to the comparable federal program in order to make Florida more attractive to national investors who are deciding where to invest funds raised under the federal guidelines.

HB 293 passed the House Economic Expansion and Infrastructure Council 11 Y/ 3 N and has been placed on the House Policy and Budget Council agenda for Monday April 14 if received.  If not, it will be heard on Tuesday, April 15.

 

HB 593 Relating to Florida Research Commercialization Matching Grant Program
Sponsored by Representative Steve Precourt (R- Winter Garden)

HB 593 creates the Florida Research Commercialization Matching Grant Program to assist small or startup companies that take advantage of federal and state partnerships to overcome a funding gap faced by many small companies for the creation of new technology-based products.  HB 593 passed the House Economic Expansion and Infrastructure Council unanimously, and has been placed on the House Policy and Budget Council agenda for Monday, April 14 if received.  If not, the bill will be heard on Tuesday, April 15.

 

HB 1055 Relating to the Space Industry
Sponsored by Representative Thad Altman (R-Melbourne)

HB 1055 creates a multi-university Space Technology and Research Diversification Initiative (“STRDI”) within the Governor’s Office of Tourism, Trade and Economic Development (“OTTED”). The initiative will be a university-based program to develop high-impact space research and applied technology programs that will advance the state’s interests in space industry expansion and diversification.  The research will be led by a
consortium of universities, with a main campus located in Brevard, Volusia, or Orange County, and will be centrally administered at the Space Life Sciences Laboratory.

HB 1055 passed the House Economic Expansion and Infrastructure Council unanimously, and has been placed on the House Policy and Budget Council agenda for Monday, April 14, if received.  If not, it will be heard on Tuesday, April 15.

 

HB 1373 Relating to Qualified Defense Contractor Tax Refund Program
Sponsored by Representative Thad Altman (R-Melbourne)

HB 1373 expands s. 288.1045, F.S., relating to the Qualified Defense Contractor tax refund program (“QDC”) to allow for space flight businesses or entities with space flight contracts to qualify for QDC tax refunds.  It also provides definitions for the terms “space flight business,” “space flight business contract,” “new space flight contract,” and “consolidation of space flight contract.”  HB 1373 amends the amount of tax refunds available to qualified applicants from $5,000 per job to match the tiered system used to award tax refunds under the Qualified Targeted Industry Tax Refund Program.

HB 1373 passed the House Economic Expansion and Infrastructure Council unanimously and has been placed on the House Policy and Budget Council agenda for Monday, April 14 if received.  If not, it will be heard on Tuesday, April 15.

 

HB 7111 Relating to Economic Development
Sponsored by Representative Dean Cannon (R-Winter Park) and the Economic Expansion and Infrastructure Council

The bill, related to Economic Development, makes substantial amendments to Florida’s economic incentive programs and supports rural and small businesses at a minimal cost to the State. The bill is designed to improve program implementation and processes and consists of the following parts:

• Small Business Regulatory Relief–The bill establishes the Small Business Regulatory Relief Act by creating a Small Business Regulatory Review Advisory Council and a Small Business Advocate. The bill also amends the Administrative Procedures Act by requiring state agencies to prepare a statement of estimated regulatory cost if the proposed rule will impact small business.  It also creates a review process utilizing the Office of Program Policy Analysis and Government Accountability when an agency does not utilize an alternative rule offered by the Council.
• Economic Development Incentive Programs–The bill amends several of the state’s business incentive programs. The bill creates a standard application timeline and removes the sunset of Qualified Target Industry Program.  The bill modifies the following programs:

• Capital Investment Tax Credit
• Economic Development Transportation Fund
• Qualified Defense Contractor Tax Refund Program
• Qualified Target Industry Program
• Brownfield Redevelopment Bonus Refund Program
• High Impact Performance Incentive Program
• Quick Action Closing Fund
• Entertainment Industry Financial Incentive Program
• Black Business Loan Program
• Tax refunds available to spring training facilities

The bills also: (1) amends the Florida Opportunity Fund to require final approval for the venture capital investment manager by Enterprise Florida, Inc.; and (2) creates s. 501.701, F.S., to require state agencies and Florida businesses that evaluate other businesses (based on consumer complaints) to disclose and publish the methodology of the evaluation and to offer each business under review the opportunity to supply a written statement or rebuttal for publication.
• Rural Economic Development–The bill makes several recommended changes to the Rural Infrastructure Fund and the Rural Economic Development Initiative (“REDI”), including: codifying the catalyst project, giving REDI the ability to provide technical assistance for comprehensive planning; expanding enterprise zones in rural areas of critical economic concern by three square miles, and clarifying that criteria for rural projects receiving funds under the Quick Action Closing Fund can be waived.  In addition, the bill expands the definition of rural in several sections of statute to allow Highlands County to remain designated as a rural county.

HB 7111 is a Council Bill, meaning it was created and put forth by the entire Council.  It will be presented by Representative Cannon and is the House’s Economic Development Package.  It has been placed on the House Policy and Budget Council agenda for Tuesday, April 15. 

 

SB 2310 – Relating to Economic Stimulus
Sponsored by Senator Jeremy Ring (D- Margate)

This bill allows the State Board of Administration to invest a maximum 1.5 percent of the net asset value of the Florida Retirement System Trust Fund in technology and growth investments, as defined by general law. The bill also creates a $40 million prize ($20 million contributed by the State) to encourage the invention of a reusable space vehicle that could be used to replace the Space Shuttle. However, this bill does not appropriate any State funds for this prize.

SB 2310 passed the Senate General Government Appropriations Committee unanimously and has been placed on the Senate Special Order Calendar for Wednesday, April 16.

 

SB 1706 – Relating to Developments of Regional Impact
Sponsored by Senator Gwen Margolis (D-Bay Harbor Islands)

This bill exempts certain developments from a development-of-regional impact (“DRI”) review if the following conditions are met:
• One of at least two proposed land uses within the development is for an office or laboratory appropriate for the research and development of medical technology, biotechnology, or life science applications.
• The development must be located within a county having a population greater than 1.5 million.
• The land is located in a designated urban infill area or the local government adopts a resolution recognizing the land is located in a compact, high-intensity, and high density multi-use area.
• The land is located within three-fourths of one mile from one or more bus or light rail transit stops.
• The development is registered with the United States Green Building Council and there is an intent to apply for certification of each building under the Leadership in Energy and Environmental Design program, or the development is registered by an alternate green building rating system that the local government approves by resolution.

One proposed life sciences project that may be able to take advantage of the DRI exemption is the planned Miami Bioscience Center.

SB 1706 passed the Senate Higher Education Committee unanimously and now will go to the second reading calendar, thereby making it available to be placed on the Special Order Calendar and ready to be heard on the Senate Floor.

 

SB 2526 – Relating to Space Technology Research and Diversification
Sponsored by Senator Bill Posey (R-Rockledge)

This bill would create the multi-university Space Technology and Research Diversification Initiative (“STRDI”) to develop space research and applied technology programs offered by a consortium of universities. The STRDI program would be established within the OTTED and be supported by Space Florida. STRDI would be centrally administered by two university partnerships, the Joint Institute for Space Exploration Research and the University of Central Florida’s Spaceport Research and Technology Institute. The goal of STRDI is to provide space-related research, technology development, and educational opportunities to broaden Florida’s space economy.

SB 2526 passed the Senate Higher Education Committee unanimously and now will go to the Transportation and Economic Development Appropriations Committee chaired by Senator Mike Fasano (R-New Port Richey).

 

SB 2728 – Relating to Community Redevelopment/Blighted Areas
Sponsored by Senator Larcenia Bullard (D-Miami)

The bill includes land previously used as a military facility in the definition of “blighted area” for purposes of the Community Redevelopment Act.  SB 2728 passed the Senate Community Affairs Committee unanimously and has been placed on the agenda for Wednesday, April 16 in the Military Affairs and Domestic Security Committee chaired by Senator Charlie Dean (R-Inverness).

 

SB 1626 – Relating to Charter County Transit System Surtax
Sponsored by Senator J.D. Alexander (R-Winter Haven)

This bill renames the Charter County Transit System Surtax, the “Charter County Transportation System Surtax.” The bill allows proactive eligibility for twelve existing charter counties by removing an existing provision requiring charter adoption prior to January 1, 1984. The bill also allows proceeds of the surtax to be remitted to transit authorities for specified uses.

SB 1626 passed the Senate Community Affairs Committee unanimously and has been placed on the agenda for the General Government Appropriations Committee for Tuesday, April 15.

 

SB 2304 – Relating to Recreational Marine Industry/ Report
Sponsored by Senator Mike Bennett (R-Bradenton)

SB 2304 directs Enterprise Florida, Inc., (“EFI”) to include in its annual report a description of efforts to recruit or retain businesses engaged in the marine industries, and to describe trends in Florida pertaining to availability of public access to the water, and any gains or losses in the number of marinas, boatyard facilities, and recreational marine businesses.

SB 2304 passed the Senate Environmental Preservation and Conservation
unanimously and now will go to the Finance and Tax Committee chaired by Senator Haridopolis.

 

SB 1120 – Relating to Research Commercialization Matching Grant Program
Sponsored by Senator Don Gaetz (R-Ft. Walton Beach)

SB 1120 creates the Florida Research Commercialization Matching Grant Program (“Program”) to assist small or startup companies that take advantage of federal and state partnerships to accelerate their growth and market penetration. Program applicants must meet several criteria, such as being registered to do business in Florida and having attracted funding from non-government sources. The bill directs the EFI Technology, Entrepreneurship and Capital Committee, or a subcommittee, to develop program policy, establish criteria for the grant awards, approve the awards, and review the program’s progress and results.

SB 1120 passed the Senate Governmental Operations Committee unanimously and now will go to the Higher Education Appropriations Committee chaired by Senator Evelyn Lynn (R- Daytona Beach).

 

SB 346 – Relating to Sure Futures Scholarship Program and Foundation
Sponsored by Senator Jeremy Ring (D- Margate)

SB 346 creates the Sure Futures Postgraduate Scholarship Program to match private-sector businesses with students who are seeking advanced degrees and employment. A corporate sponsor would provide a scholarship for a student, who would agree to work for the corporate sponsor for a minimum of four years after graduation. The bill establishes the Sure Futures Foundation (“Foundation”) as a non-profit organization and provides for the membership and duties of a Foundation Board of Directors to administer the Program.

SB 346 appropriates a sum not to exceed $300,000 in non-recurring general revenue to the Foundation. The amount must be repaid to the State by December 31, 2010.  Additionally, the contribution of a sponsor would be matched by the State under the University Major Gifts Program.

SB 346 passed the Finance and Tax Committee Committee unanimously and will now go to the Higher Education Appropriations Committee chaired by Senator Evelyn Lynn (R- Daytona Beach).

 

SB 2666 – Relating to Space Flight Contractors/Tax Refunds
Sponsored by Senator Bill Posey (R-Rockledge)

SB 2666 expands s. 288.1045, F.S., the Qualified Defense Contactor (“QDC”) tax refund program, to include space flight business contractors with new contracts and space flight businesses consolidating contract work in Florida facilities. To be eligible for a refund, a new space flight business contract or a facility consolidation must result in a net increase in space flight business employment at an applicant’s Florida facilities. The bill provides for a tiered computation of the tax refund amount available to space and defense contractors, identical to that offered by the Qualified Targeted Industry Program.

SB 2666 passed the Senate Finance and Tax Committee unanimously and will now go to the Transportation and Economic Development Appropriations Committee, which is chaired by Senator Fasano.

 

SB 2712 – Relating to Building Florida’s Future Revolving Trust Fund/OTTED
Sponsored by Senator Mike Fasano (R-New Port Richey)

SB 2712 creates the Building Florida’s Future Revolving Trust Fund to serve as a non-lapsing repository of funds to provide loan guarantees and other types of credit enhancements under the Building Florida’s Future Revolving Loan Guarantee Program, to be created in SB 2714. The loan guarantees would be incentives to local governments engaged in certain economic development activities, including public-private partnerships.

SB 2712 passed the Senate Transportation and Economic Development Appropriations Committee unanimously and has been placed on the Senate Special Order Calendar for Wednesday, April 16.

 

SB 2714 – Relating to Economic Development
Sponsored by Senator Mike Fasano (R-New Port Richey)

SB 2714 creates the “Building Florida’s Future Revolving Loan Guarantee Program” within the OTTED. The Program’s purpose is to provide loan guarantees or other credit enhancements to local governments or private entities for the purpose of building or modernizing facilities or infrastructure needed to attract or expand targeted industries, generally defined in s. 288.106(1)(o), F.S., as stable, high-wage businesses with tremendous potential for growth.

OTTED and ETI, the State’s business recruitment arm, would evaluate applications for the loan guarantees on such factors as credit-worthiness, and the extent to which the assistance would foster an innovative public-private partnership or attract private investment to the project. OTTED must transmit to the Legislature and the Governor an annual report, beginning January 5, 2009, about the Program’s activity.

SB 2714 passed the Senate Transportation and Economic Development Appropriations Committee 4 Y/ 1 N and has been placed on the Senate Special Order Calendar for Wednesday, April 16.  $20 million was added to the Program through an amendment adopted to the bill.

 

SB 2778 Relating to Scripps Research Institute
Sponsored by Senator Mike Fasano (R-New Port Richey)

SB 2778 requires the Scripps Florida Funding Corporation, along with OTTED and ETI to review the performance and progress of grant recipients of the Innovation Incentive Program.  It also requires the Legislative Budget Commission to review and approve an innovation incentive award before the Executive Office of the Governor releases the funds.  Senator Fasano indicated that the intent of this bill was to make certain the Legislature continues to have a watchful eye on its investments by enforcing accountability for meeting performance measures in place.

SB 2778 passed the Senate Transportation and Economic Development Appropriations Committee unanimously and has been placed on the Senate Special Order Calendar for Wednesday, April 16.

 

HB 911 Relating to Developments of Regional Impact
Sponsored by Representative Denise Grimsley (R-Sebring)

This bill amends s. 380.06, F.S., to exempt certain developments that include an office or laboratory appropriate for the research and development of medical technology, biotechnology, or life science applications from a development-of-regional impact review if specified conditions are met.

HB 911 passed the House Economic Expansion and Infrastructure Council unanimously and will now go to the Policy and Budget Council chaired by Representative Sansom.

 

HB 959 Relating to Workforce Innovation
Sponsored by Rep Chuck Chestnut (D-Gainesville)

This bill would permit regional workforce boards to be designated as one-stop operators and direct providers of intake, assessment, eligibility determinations, or other direct provider services, subject to agreement of the chief elected official1 and the Governor as specified in 29 U.S.C s. 2832(f)(2).

HB 959 passed the House Economic Expansion and Infrastructure Council unanimously and now will go to the Policy and Budget Council chaired by Representative Sansom.

 

Should you have any questions or comments, please contact:

Frank Mayernick at (850) 251-8898
Tracy Mayernick at (850) 445-3000
at Colodny Fass