FEDC Inside Track for Legislative Affairs: Week of March 17-21

 

Above:  Speaker-designate and Policy & Budget Council Chairman Rep. Ray Sansom, R- Fort Walton Beach, explains the importance of balancing Florida’s checkbook during consideration of the budget adjustment conference committee’s report on the House floor.

 

FEDC Legislative Report:  Week of March 17-21

The third week of Florida’s 2008 Regular Legislative Session has concluded with six more to go!

A majority of House committees will not meet again, while Senate committee chairs announced that no bills without a House companion version would be placed on their agendas.  House Councils will continue to conduct meetings to hear member bills and work on their respective budgets.

A majority of Florida departments and agencies have concluded their budget presentations and join the House and Senate budget chairs in anxiously awaiting the official arrival of the Fiscal Year (“FY”) 2008-2009 budget allocations.   In observance of Good Friday, the Legislature will not hold any meetings Friday, March 21, 2008 and will resume its business on Monday March 24.

Listed below we have provided an overview of the week here in Tallahassee.

 

COMMITTEE MEETINGS

 

House Committee on Economic Development

The House Committee on Economic Development met Thursday, March 20 to hear member bills and present its first draft of recommendations from previous workshops on their economic development incentives. What ultimately was presented by the Committee amounts to a work in progress.  This was punctuated by Chairman Dorothy Hukill and staff stating that the recommendations do not encompass all of the ideas discussed, and that the Committee will continue to receive input to include in its final draft (including legislation for rural county incentives).

The Committee expects to present the final Proposed Committee Bill to the Economic Expansion and Infrastructure Council in two weeks.  Some of the highlights from the Committee’s recommendations are listed below. For the actual draft language that was discussed and published in the meeting packet, please click here (and go to page 178).

Highlights:
• New statute with a standard timeline for all incentive programs
• Deletion of statewide average wage (requires wage calculation from private sector county wage or standard  metropolitan wages)
• Deletion of an obsolete tax
• Ensures that these incentive programs are able to attract projects related to alternative energy products
• Requires wage calculations for expansion projects to be based only on wages for the new jobs
• Provides the Office of Tourism, Trade and Economic Development (“OTTED”) to give an exemption to projects that are unable to meet performance criteria due to the downturn in the economy
• Deletes the sunset provision of the Qualified Target Industry program

The following member bills also were presented:

HB 959–Relating to Workforce Innovation, sponsored by Representative Charles Chestnut (D-Gainesville).  HB 959 authorizes designation of regional workforce board as one-stop operator and direct provider of intake, assessment, eligibility determinations, or other direct provider services, subject to agreement of the board’s chief elected official and the Governor.

The bill passed unanimously with one amendment, which aligned the current bill with the Senate companion bill (CS/SB 428) and current federal law. There were no questions on the bill from the Committee.

HB 1277 Relating to Enterprise Zone Jobs Credit against Sales Tax, sponsored by Representative Denise Grimsley (R- Sebring).  HB 1277 revises the definition of “job” for purposes of establishing eligibility for the enterprise zone jobs tax credit against sales and use tax. It includes employment of a worker by two or more related corporations that participate in a common paymaster arrangement. The bill allows employers who would otherwise be eligible to utilize a common paymaster arrangement and apply for an enterprise zone jobs tax credit against sales and use tax.  The bill passed unanimously with no amendments and no questions.

HB 1373 Relating to Qualified Defense Contractor Tax Refund Program, sponsored by Representative Thad Altman (R-Melbourne).  HB 1373 includes space flight businesses and space flight contracts under the Program; specifies methodology and amounts for tax refund payments to qualified defense contractor businesses; revises provisions authorizing qualified applicants to receive refunds of specified taxes; revises application process requirements to include space flight businesses and contracts; provides employment requirements for space flight business contracts; specifies required information for applications for certification under space flight business contracts; includes space flight businesses under provisions authorizing annual claims for refund; revises limitations on payments of tax refunds; revises required reductions of amounts of tax refunds; deletes reporting requirement of tax refunds paid and use of appropriations expended; extends expiration date.

HB 1373 passed unanimously with two technical amendments suggested by the Florida Department of Revenue. The sponsor stated the need to remain competitive here in Florida and that defense contractors are considered a target industry. There were no questions regarding the bill.

The Committee ended the meeting by indicating there was a chance that the Chair would recommend another meeting, but at this time, none were scheduled.

 

Senate Transportation and Economic Development Appropriations Committee (“TED”)

On Wednesday, March 19, the Senate TED committee met briefly to outline its upcoming plans for the budget. Chairman Mike Fasano expects to receive his allocation by Monday, March 24, and TED will meet throughout the week to work on its budget from that allocation.

The schedule for next week is:
• Monday (3/24) – begin budget workshop with allocations
• Tuesday (3/25) – present proposed budget in the form of a Proposed Committee Bill to Members
• Wednesday (3/26) – Committee will meet to hear input from Members on proposed budget
• Thursday (3/27) – Committee will convene to vote on the bill

 

Senate Commerce Committee

On Tuesday, March 18, the Senate Commerce Committee, chaired by Senator Alex Diaz de la Portilla (R- Miami) met to hear a number of Member bills.  With a full agenda, the Committee was unable to hear all of the bills this week, but intends to hear those bills during the next scheduled committee meeting on Tuesday, March 25 at 9 a.m.  To view the meeting packet, click here.

The following bills were heard in the Commerce Committee:

SB 850 Relating to Corporate Income Tax Credits, sponsored by Senator Mike Fasano (R- New Port Richey).  SB 850 establishes the New Markets Tax Credit Program to encourage capital investment in rural and urban low-income communities. Allows state taxpayers to receive future credit against specified state taxes by investing in community development entities that make quality equity investments in qualified active low-income community businesses, etc.  Effective date:  July 1, 2008

SB 850 was passed unanimously with one amendment. The bill will now go to Community Affairs, chaired by Senator Rudy Garcia (R- Miami).

SB 1398 Relating to Research and Development Expenses Tax Credit, sponsored by Senator Steve Oelrich (R- Gainesville).  SB 1398 provides a tax credit for any business or the headquarters of any business that is engaged in the manufacturing, warehousing and distribution, processing, telecommunications, tourism, or research and development industries that has qualified research expenses. Provides this credit if such business claims, and is allowed a research credit under s. 41 of the Internal Revenue Code for the same taxable year. Effective date:  July 1, 2008.

During the presentation of this bill, Senator Gary Siplin (D- Orlando) was concerned with a company’s ability to sell its business and allow the new owner to take advantage of the tax credit if the new owner is not providing the same research and development services to the State.  Because it was determined that the bill was not intended to allow such a situation to take place, the Committee requested that an amendment be offered making that clear within the language. The sponsor agreed to the request but unfortunately staff was unable to get this done and presented to the Committee before its allotted time was up, which led to the bill being temporarily postponed. This bill will be taken up again during the next Committee meeting, at which time the requested amendment will be available.

SB 2310 Relating to Economic Stimulus, sponsored by Senator Jeremy Ring (D- Margate) and co-sponsored by Senator Alex Diaz de la Portilla (R- Miami).  SB 2310 economically targets investments as an asset class and directs the State Board of Administration to invest not more than one percent of the net asset value of the Florida Retirement System Trust Fund in economically-targeted investments (ETIs), as defined. 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.

The bill passed unanimously after a controversial amendment was withdrawn from consideration. Senator Ring had offered an amendment to move the investment amount from one percent to 1.5 percent or more in an effort to not create a ceiling for the SBA if it was beneficial for more to be invested. Senator Evelyn Lynn (R- Daytona Beach) was concerned that without a ceiling, the State was allowing too many dollars to be at risk.  After a lengthy debate and public testimony, Senator Ring withdrew the amendment and the bill passed. This bill will now go to the Governmental Operations Committee, which is chaired by Senator Al Lawson (D- Tallahassee).

The following information on SB 2310 subsequently was released by the Senate:

Senate Commerce Committee Approves Legislation by Senators Diaz de la Portilla, Ring

Economy-boosting bill encourages strategic investment
 
Tallahassee, FL – The Florida Senate Commerce Committee today unanimously passed a bill by Senator Alex Diaz de la Portilla (R-Miami) and Senator Jeremy Ring (D-Parkland) designed to stimulate Florida’s economy and encourage strategic investments by the State Board of Administration (SBA).
 
Senate Bill 2310 directs the SBA to invest not more than 1% of the net asset value of the Florida Retirement System Trust Fund in economically targeted investments. Such investments are defined as a type of alternative investment in business sectors that include, but are not limited to, aerospace and aviation engineering, computer technology, renewable energy, and medical and the life sciences, and which are likely to stimulate the state’s economic development.
 
“This bill not only gives the SBA new avenues for getting the best return on their investments – it also opens new doors for new business and jobs in our state,” said Senator Diaz de la Portilla. “By giving the SBA the option to strategically invest in fields like aerospace and aviation engineering, renewable energy, and medical and life sciences, we can use Florida’s dollars to boost Florida’s economy.”
 
The bill also creates a $40 million prize to spur competition and entrepreneurial investment, encouraging the invention of a reusable space vehicle that could be used to replace the Space Shuttle.
 
“This is an industry that already exists in Florida,” said Senator Ring. “If we can leverage these dollars to get possibly hundreds of millions in research and development for this industry, it would be a great investment for the people of Florida, and the most important piece of legislation for Florida’s future we will tackle this year.”

 

NEWS FROM THE GOVERNOR’S OFFICE

 

Governor Crist Celebrates Florida’s Film And Entertainment Industry

Governor Charlie Crist on March 19, 2008 hosted a reception at the Governor’s Mansion for Florida’s film and entertainment industry leaders and legislators. The reception, coordinated by the Governor’s Office of Film and Entertainment and Film Florida, honored actor Armand Assante and Frank Patterson, dean of the Florida State University Film School. Former Tampa Bay Buccaneer Michael Joseph Alstott, who is featured in the EA Sports Madden NFL game, was also a special guest at the event.

“Florida’s film and entertainment industry is a $3.9 billion industry and includes almost 34,000 jobs in more than 5,000 businesses statewide,” Governor Crist said. “In addition, Florida’s fast-growing digital media industry is also important to our state’s economy and is growing at a double-digit pace due to the popularity of video games.”

Florida’s 2007-08 Film, Television & Digital Media Incentive Program (The Don Davis Entertainment Industry Economic Development Act of 2007) has received applications from 83 productions. The 45 projects that are currently certified are expected to spend over $153 million in the state on Florida residents’ wages and at Florida businesses, representing an economic impact of no less than $6 for every $1 of the incentive rebated.

 

Governor Crist And Secretary Sole Introduce New DEP Permitting Notification System

Governor Charlie Crist and Florida Department of Environmental Protection (DEP) Secretary Michael W. Sole launched a new system for e-mail notification of permit applications for the public. The Permitting Application Subscription Service, or PASS, allows the public to receive e-mail alerts when permit applications are submitted to DEP. The announcement, made during Sunshine Week, observed March 16-22, 2008, furthers the state’s commitment to open government and quality of life.  To read the complete story, click here.

 

Should you have any questions or comments, please contact:

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