FEDC Inside Track For Legislative Affairs: Week of March 24-28

 

Above:  Sophomore GOP lawmaker Don Gaetz (here with Sen. Rhonda Storms) is generating a buzz as a future Senate chief.

 

FEDC Legislative Report:  Week of March 24-28

Week Four of Florida’s 2008 Regular Legislative Session has sailed by, bringing us closer to the Session’s halfway point! Budget allocations were received and Chairmen’s proposals were released.  Appropriations committees met throughout the week in an effort to collect Member input and begin working towards their final committee proposals for presentation.

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

BUDGET

Senate Transportation and Economic Development (TED) Appropriations

The Senate TED met throughout the week.  Below is a recap of the Committee’s daily activities:

• Monday – Meeting was canceled
• Tuesday – Chairman released the proposed budget reductions totaling a $37.9 million in Recurring General Revenue.
• Wednesday – Chairman released his proposed budget for Fiscal Year (“FY”) 2008-’09
• Thursday-Reviewed changes made from Wednesday’s proposal and announced future schedule

The proposed budgets outlined below represent very early first drafts and will change considerably throughout the legislative process as a result of back-and-forth negotiations between the House and Senate.

Below please find the highlights from the Senate TED proposed budget:

• Economic Transportation Projects (Road Fund)  $40.4 million
• Quick Action Closing Fund (QAC) $15 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

TED Chairman Senator Mike Fasano announced that the final budget proposal would be voted upon by the Committee on Wednesday, April 2nd.  From there, the TED budget will go to the Fiscal Council, and then to the Floor of the Senate.  At that point in time, the budget conference committees will begin meeting to negotiate on the differences within each chamber’s budget.

To view the TED budget spreadsheet, click here.

House Economic Expansion and Infrastructure Council

On Thursday, March 27 the House Economic Expansion and Infrastructure Council met and revealed its proposed budget for FY 2008-’09.  Like other budget committees, the Council’s budget product represents a very early version in an ongoing process and we also expect these numbers to change many times.  To view the March 27 Council meeting packet, click here.

Some of the highlights from Council Chairman Dean Cannon’s proposed budget are listed below:

• Economic Transportation Projects (Road Fund)  $10 million
• Quick Action Closing Fund (QAC) $34.2 million
• Economic Development Tools $21.762 million
• Innovation Incentive Program $0
• Space Florida $4.5 million
• Enterprise Florida $11 million
• Entertainment Industry Incentive $9 million

House Policy and Budget Council 

The House Policy abd Budget Council released its proposed budget on Sunday, March 30th. All of the councils submitted their recommendations and then worked throughout the weekend to create the Policy and Budget Council’s proposal, PCB 3. There were some changes made from Chairman Cannon’s proposed budget from March 27.  Listed below are the new figures.

• Economic Transportation Projects (Road Fund)  $40 million (increased by $30 million)
• Quick Action Closing Fund (QAC) $33.6 million (reduced by $600,000)
• Economic Development Tools $21.762 million (no change)
• Innovation Incentive Program $0
• Space Florida $4.5 million (no change)
• Enterprise Florida $12.1 million (increased by $1.1 million)
• Entertainment Industry Incentive $9 million (no change)

The House has sent its recommended budget proposal to Policy and Budget Council Chairman Ray Sansom, where it will be heard, amended and voted upon on Thursday, April 3rd. To view this budget spreadsheet click here.

To see the amendment deadlines and the remainder of the proposed appropriations schedules click here. 

COMMITTEE MEETINGS

Senate Commerce Committee

On Tuesday, March 25, the Commerce Committee, chaired by Senator Alex Diaz de la Portilla (R-Miami) met to hear a number of member bills, including those that had been temporarily postponed (“TPd”) during the previous week. There were multiple bills relating to economic development that were passed out of this committee and will continue to move through the process.  To view the meeting packet, click here.

The following bills were heard in the Commerce Committee:

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.  The bill 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, etc.  Effective date of bill: July 1, 2008.

SB 1398 passed unanimously with two amendments. The first amendment clarified that a business enterprise is defined to mean “a corporation.” The second amendment addressed an issue that caused a TP of the bill during the previous meeting.  Senator Lynn offered an amendment stating that a purchasor of a company only will be able to transfer the tax credit if the new company is qualified to perform research and development within Florida. The bill now will go to the Finance and Tax Committee, which is chaired by Senator Mike Haridopolis (R- Melbourne).

SB 2714 Relating to Economic Development (Building Florida’s Future Revolving Loan Guarantee Program), sponsored by Senator Mike Fasano (R-New Port Richey).  SB 2714 establishes the Building Florida’s Future Revolving Loan Guarantee Program within the Florida Office of Tourism, Trade, and Economic Development (“OTTED”).  Provides for the Program to provide loan guarantees or credit enhancements to units of local government or to private entities for use in constructing or modernizing facilities and infrastructure necessary to attract or expand certain industries as part of an economic development project, etc.

Senator Fasano stated that this program is modeled after other states that are successfully operating similar programs.  Senator Diaz de la Portilla offered two of the three amendments.  Senator Diaz de la Portilla’s amendments both were technical in nature in an effort to tighten OTTED’s rulemaking.

The third amendment, which was withdrawn for the time being, was offered by Senator Burt Saunders and created the Nursing Education Faculty Enhancement Program.  Multiple Committee members expressed their support for this amendment and asked that it be filed again between the next Committee stop and the Senate floor. The bill passed unanimously and now will go to the Senate Transportation and Economic Development Appropriations Committee chaired by Senator Fasano.

SB 2712 Relating to Building Florida’s Future Revolving Trust Fund, sponsored by Senator 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 loans and loan guarantees under the Building Florida’s Future Loan Program, also to be created in SB 2714. The loans or loan guarantees provided by the bill would be incentives to local governments engaged in certain economic development activities, including public-private partnerships.

SB 2712 passed unanimously with three technical amendments that removed obsolete references. This bill now will go to Transportation and Economic Development Appropriations Committee, chaired by Senator Fasano.

SB 2778 Relating to Scripps Research Institute, sponsored by Senator Fasano (R- New Port Richey).  SB 2778 requires the Scripps Florida Funding Corporation, along with the OTTED and Enterprise Florida, Inc., to review the performance and progress of grant recipients of the Innovation Incentive Program.  The bill also requires the Legislative Budget Commission to review and approve an innovation incentive award before the Executive Office of the Governor releases the funds, etc. Effective date of bill: upon becoming law.

Senator Fasano, the bill’s sponsor, indicated the intent of SB 2778 was to make certain the Legislature continues to have a watchful eye on its investments by enforcing accountability for meeting performance measures in place.  With no questions from Committee members, the bill passed unanimously.  It will now go to the Government Operations Committee, which is chaired by Senator Al Lawson (D-Tallahassee).

SB 1706 Relating to Developments of Regional Impacts, sponsored by Senator Gwen Margolis (D- Bay Harbor Islands).  SB 1706 exempts certain developments that include an office or laboratory appropriate for the research and development of medical technology, biotechnology, or life science applications from development-of-regional impact (“DRI”) review if certain conditions are met.

Senator Margolis explained that this was a specific exemption designed to benefit a University of Miami project. There were no questions asked and the bill passed unanimously.  SB 1706 will now go to the Transportation Committee, which is chaired by Senator Carey Baker (R- Eustis).

Economic Development-Related Bills Withdrawn From Further Consideration

SB 2274 Relating to Quick Action Closing Fund, sponsored by Senator Don Gaetz (R- Fort Walton Beach).  SB 2274 provides for the resources of the Quick Action Closing Fund to be made available to less populated areas that have suitable resources to accommodate growth and have adopted a conceptual long-term buildout overlay to the comprehensive plan and a detailed specific area plan. Provides that resources be made available to pursue high-impact business facilities in areas that seek economic development and have adopted an optional sector plan, etc.  Appropriation: $50,000,000. Effective date of bill: July 1, 2008.  Note:  This bill subsequently was withdrawn.
 
Other Economic Development-Related Bills Continuing to Move Through the Legislative Process

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 designates economically-targeted investments as an asset class and directs the State Board of Administration to invest not 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 Florida) to encourage the invention of a reusable space vehicle that could be used to replace the Space Shuttle.

The sponsor, Senator Ring, stated that the concerns expressed at the previous meeting regarding the safety of the pensions had been eliminated.  He also stated that the passage of this bill would create a $2 billion economic stimulus to the state that would require no expenditure of tax dollars. Senator Ring related to the Committee that many other states have programs similar to this, and that in California alone this program created 120,000 new jobs and a $15 billion economic influx.

Senator Steve Oelrich (R-Gainesville) applauded Senator Ring for investing in Florida’s economy in such an innovative way.

State Board Administration (“SBA”) Interim Executive Director General Bob Milligan testified that the SBA has been actively involved in every step of the creation of SB 2310 and strongly supports Senator Ring’s efforts.

The bill passed the Governmental Operation Committee unanimously and will now go to Finance and Tax Committee, which is chaired by Senator Mike Haridopolis (R-Melbourne).

SB 346 Relating to the “Sure Futures Scholarship Program and Foundation,” sponsored by Senator Ring.  SB 346 creates the sure Futures Postgraduate Scholarship Program and establishes the Sure Futures Foundation and a Foundation board to administer the Program.  Provides eligibility criteria for participation in the Program by students and sponsors.  Requires that a participating student who graduates with an advanced degree remain employed by his or her sponsor in Florida for a specified period, etc. Appropriation: $300,000.  Effective date: July 1, 2008.

Chaired by Senator Steve Oelrich (R-Gainesville), the Higher Education Committee passed SB 346 unanimously and placed it on the agenda for the Commerce Committee, which is chaired by Senator Alex Diaz de la Portilla (R-Miami).  The Commerce Committee next meets on Tuesday April 1, 2008.

News from the Governor’s Office

Governor Crist Promotes Health Care And Energy Legislation

Governor Charlie Crist on March 31, 2008 visited West Palm Beach to learn more about how St. Mary’s Medical Center is providing health care to uninsured Floridians. He also joined Palm Beach County commissioners Burt Aaronson, Robert Kanjian and Karen Marcus to announce PalmTran’s plans to increase energy efficiency and use of alternative energy. Congressmen Tim Mahoney and Ron Klein also attended the event.  To read the complete story, click here.

Governor Crist Visits South Broward Hospital District 

Governor Charlie Crist on March 27, 2008 visited the South Broward Hospital District to learn more about how Memorial Healthcare System has been providing mobile medical services to neighborhoods through their Health Intervention with Targeted Services (HITS) Program. The goal of the program is to enroll residents in ongoing health care before an individual’s health crisis occurs and requires more expensive emergency care.  To read the complete story, click here.

Governor Crist Reappoints Czerniec To The Higher Education Facilities Financing Authority

Governor Charlie Crist on March 31, 2008 announced the following reappointment:
Higher Education Facilities Financing Authority (Senate Confirmation Required)
• Timothy H. Czerniec, 61, of Miami, senior vice president for business and finance at Barry University, reappointed for a term beginning March 31, 2008, and ending January 17, 2013.

Governor Crist Reappoints Four To The South Florida Regional Planning Council, Region 11

Governor Charlie Crist on March 28, 2008 announced the following reappointments:
South Florida Regional Planning Council, Region 11 (Senate confirmation required)
• Patricia Asseff, 58, of Hollywood, Hollywood city commissioner, realtor, Coldwell Banker, reappointed for a term beginning March 28, 2008, and ending October 1, 2010.
• Marta Perez, 53, of Coral Gables, school board member, Miami-Dade County, reappointed for a term beginning March 28, 2008, and ending October 1, 2010.
• Jose Riesco, 48, of Coral Gables, self-employed certified public accountant, reappointed for a term beginning March 28, 2008, and ending October 1, 2010.
• Paul Wallace, 64, of Miami, attorney with Hinshaw & Culbertson, reappointed for a term beginning March 28, 2008, and ending October 1, 2009.

Governor Crist Reappoints Maultsby To The North Central Florida Regional Planning Council, Region 3

Governor Charlie Crist today announced the following reappointment:
North Central Florida Regional Planning Council, Region 3 (Senate confirmation required)
• Charles Maultsby, 68, of Perry, manager of Florida Plywoods Inc., reappointed for a term beginning March 28, 2008, and ending October 1, 2009.

Should you have any questions or comments, please contact:

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