Update–FEDC Inside Track For Legislative Affairs: Week of March 31-April 4

 

House photo by Mark Foley 
Above:  Rep. Alan D. Hays, R-Umatilla, left, gets a congratulatory hug from Rep. Jimmy Patronis, R-Panama City, right, after his proposal, HJR 281, was approved by the House Wednesday, April 2, 2008, in Tallahassee, Florida. The proposed constititional amendment would eliminate the 1998 voter-approved system that allows candidates for governor and Cabinet races to draw state matching funds and was approved by a House vote of 82-34.

 

FEDC Legislative Report–Week of May 31-April 4

Update:  Please note that the previously-issued Week Five FEDC Inside Track newsletter had incorrectly identified Workforce Florida as “Agency for Workforce Innovation” in the Budget Section below.  Workforce Florida is, in fact, the agency responsible for the key Workforce Florida programs such as QRT, IWT and Banner Centers. With a 45-member Board appointed by the Governor, Workforce Florida oversees and monitors administration of Florida’s workforce policy, programs and services carried out by 24 business-led regional workforce boards.

Week Five of the 2008 Regular Legislative Session has concluded, putting us officially halfway through the 2008 Legislative Session. Budgets were voted out of committees, and councils and legislators spent a significant amount of time on the Chamber floors. 

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

 

BUDGET

 

Senate Transportation and Economic Development (“TED”) Appropriations

Senate TED met Wednesday April 2, 2008 to hear amendments to its budget and officially vote the budget out of the TED Committee.

The TED budget consisted of $12.1 billion in General Revenue and $11.7 billion in trust funds.  One late-filed amendment by Chairman Mike Fasano changed the Office of Trade, Tourism and Economic Development (“OTTED”) budget by adding an additional $20 million to OTTED transportation projects (also known as the Road Fund).

The following highlights are not intended to be a comprehensive review of the OTTED budget.  To view additional items click here

• Economic transportation projects (Road Fund)  $60 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
• Rural infrastructure $0
• Defense infrastructure $0
• Military base protection $2 million
• Rural community development $1.3 million

The Workforce Florida programs have funding at the following levels:

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

 

Fiscal Policy and Calendar Committee

The Senate Fiscal Policy and Calendar Committee met Thursday, April 3 to hear SB 2900, the full appropriations bill. There were no amendments to the bill and it has now been placed on the Special Order Calendar for Wednesday, April 9.

 

House Economic Expansion and Infrastructure Council

The House Economic Expansion and Infrastructure Council met Tuesday, April 1, however, no economic development legislation was discussed.  The Committee already has submitted its budget to the House Policy and Budget Council, so until conference committees begin to meet, this Committee has completed its budget work.

 

House Policy and Budget Council

The House Policy and Budget Council met Thursday, April 3 to amend and vote on its entire proposed budget (HB 5001). The following highlights are not intended to be a comprehensive review of this 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

The Agency for Workforce Innovation Programs have funding at the following levels:

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

HB 5001 will now go to the House floor where amendments will be heard and the budget will be debated and voted upon.  Both Chambers’ budgets will then proceed to conference committees to begin negotiations on their differences.  These numbers will continue to change throughout that process.

 

COMMITTEE MEETINGS

 

Senate Commerce Committee

On Tuesday, April 1, the Senate Commerce Committee, chaired by Senator Alex Diaz de la Portilla (R-Miami) met to hear a number of Member bills. It was an extremely full agenda and not all bills were heard.  However, those that were not heard will be posted on the agenda again next week.

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

CS/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 Board of Directors to administer the program.  CS/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.

Senator Ring stated that this bill was an attempt to incentivize businesses and Florida’s best and brightest students to continue to work in the State. Senator Steve Oelrich asked whether a forgiveness period existed that applied if a student violated his or her four-year employment agreement.  Senator Ring answered that 25 percent of the scholarship value per year was awarded to students, so if they were to leave early, the award would be pro-rated. The bill passed unanimously and will now go to the Finance and Tax Committee chaired by Senator Mike Haridopolis.

SB 1120 Relating to Research Commercialization Matching Grant Program
Sponsored by Senator Don Gaetz (R-Fort 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 creates an advisory committee to oversee the Program, along with a grant selection committee to review applicants for the grants and select the recipients.

SB 1120 specifies that between 20 and 30 grants, ranging from $100,000 to $250,000 each, will be awarded from a total appropriation of $5 million. The source of the appropriation and the duration of the program are not disclosed.

The bill was strongly supported by Committee and passed unanimously with one amendment that conformed the bill to HB 593 language by eliminating the establishment of an advisory council and the utilization of  a technical advisory committee–entities already in existence within Enterprise Florida. The Committee made this change so that the bill would not create a new layer of government. The bill has been placed on the Governmental Operations Committee agenda for Wednesday April 9. That Committee is chaired by Senator Al Lawson (D-Tallahassee).

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

SB 2304 creates the Recreational Marine Business Retention Program within Enterprise Florida, Inc., (“EFI”) and authorizes several inter-related activities for the purpose of gathering information or exploring alternatives to retain, promote, and recruit the marine industry.

Senator Bennett stressed how important the marine industry is to Florida’s economy and his own commitment to keep it strong within the state. The bill, which passed unanimously, will be heard in the Environmental Preservation and Conservation Committee on Wednesday April 9. That committee is chaired by Senator Burt Saunders (R- Naples).

 

Commerce Committe Space Industry Bills

The following four bills were presented by Senator Bill Posey’s aide, Russ Cyphers, who stated during his opening remarks that creating the necessary updates contained in the legislation for Florida’s Space Industry is Senator Posey’s number one priority this year.

SB 2426 Relating to Space and Aerospace Catalyst and Enhancement Act
Sponsored by Senator Bill Posey (R-Rockledge)

SB 2426 creates the Space and Aerospace Development Infrastructure Enhancement (“SADIE”) Fund, which is intended to help finance space-related infrastructure, such as launch facilities, for commercial space entities partnering with Space Florida.

The projects and the companies’ grant applications will be reviewed using a number of criteria, most of them adapted from the state’s Quick Action Closing Fund grant program and other State incentive programs. Similarly, the terms and conditions in the contracts OTTED will sign with selected project contractors is based on existing statutory language, including performance standards and sanctions for failing to meet those standards.

SB 2426 establishes the SADIE Fund in anticipation of receiving state funds, in the form of non-recurring general revenue, but does not identify the actual amount of funding.

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

SB 2458 Relating to Space and Aerospace Development Infrastructure Fund
Sponsored by Senator Bill Posey (R-Rockledge)

SB 2458 creates the Space and Aerospace Development Infrastructure Enhancement Fund (“Fund”) within the OTTED.  The proposed Fund would be the repository of legislative appropriations for Space Florida’s infrastructure development and improvement program, to be created in SB 2426.

The bill, which passed unanimously, will now go to the Committee on Finance & Tax, chaired by Senator Haridopolis (R-Melbourne).

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

SB 2526 creates 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 will be established within the OTTED and supported by Space Florida.

STRDI will be centrally administered by the two university partnerships, the Joint Institute for Space Exploration Research and the University of Central Florida’s Spaceport Research and Technology Institute. Eventually, STRDI hopes to provide space-related research, technology development, as well as educational opportunities to broaden Florida’s space economy.

The bill passed unanimously and will be heard in the Higher Education Committee on Tuesday, April 8. That committee is chaired by Senator Steve Oelrich (R-Gainesville).

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 businesses and significantly changes the current computation of the tax refund amount available to both space and defense contractors, so that it matches the amount offered by the State’s Qualified Targeted Industry Program.

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

 

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 adds economically-targeted investments as an asset class and directs the Florida 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 the State) to encourage the invention of a reusable space vehicle that could be used to replace the Space Shuttle.

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 Florida that would require no tax-based funding.  He told the Committee that many other states have similar programs, and that in California alone, this program created 120,000 new jobs and a $15 billion influx to that state’s economy.

Senator Oelrich applauded Senator Ring for investing in Florida’s economy in such an innovative way.  General Bob Milligan, Interim Executive Director of the State Board Administration (“SBA”), testified that his organization had been actively involved in every step of this legislation’s creation and the SBA strongly support Senator Ring’s efforts. The bill passed the Finance and Tax Committee unanimously and is now on the Tuesday April 8 agenda for the General Government Appropriations Committee, which is chaired by Senator J.D. Alexander (R-Winter Haven).

SB 1706 Relating to Developments of Regional Impact, sponsored by Senator Gwen Margolis.  SB 1706 exempts from taxation any development within a county having a population greater than 1.5 million that is proposed for at least two uses, one of which is for use as an office or  laboratory appropriate for the research and development of medical  technology, biotechnology, or life sciences from review as a development  of regional impact if such development meets certain criteria.  SB 1706 passed the Transportation Committee unanimously and is on the Tuesday, April 8 agenda for the Higher Education Committee, which is chaired by Senator Oelrich.

SB 402 – Relating to Target Industry Businesses/Expedited Permitting, sponsored by Senator Fasano.  SB 402 creates the Mike McHugh Act, which provides for an expedited permitting process for economic development projects.  The bill requires the Department of Environmental Protection (“DEP”) or the appropriate water management district to adopt programs to expedite the processing of wetland resource and environmental resource permits for economic development projects that have been identified by a municipality or county as meeting the definition of “target industry business.” The bill also provides the time period in which permits must be issued.  SB 402 passed the Environmental  Preservation and Conservation Committee unanimously and will now go to the Community Affairs Committee, which is chaired by Senator Rudy Garcia (R- Hialeah).

SB 2778 Relating to Scripps Research Institute, sponsored by Senator Fasano.  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. SB 2778 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: Upon becoming law.

Senator Fasano indicated that the intent of this bill was to make certain that the Legislature continues to have a watchful eye on its investments by enforcing accountability for meeting performance measures in place. SB 2778 passed unanimously with no questions from Members.  The bill passed unanimously in the Government Operations Committee, which is chaired by Senator Al Lawson (D-Tallahassee)

SB 2778 next will be heard on Thursday, April 10 in the Senate Transportation and Economic Development Appropriations Committee. 

 

HOUSE BILLS

GEAC 22 Relating to Small Business Regulatory Relief Act, Sponsored by Representative Frank Attkisson (R-Kissimmee). This proposed council bill (“PCB”) was heard Tuesday, April 1 in the House Government Efficiency and Accountability Council and will be submitted to be identified with an official bill number.

This proposed bill establishes the Small Business Regulatory Relief Act by creating a Small Business Regulatory Review Advisory Council (“Council”) and a Small Business Advocate (“Advocate”). 

The duties of the Council include: 
• Providing state agencies with input regarding proposed rules or programs that may adversely affect small business
• Considering requests from small business owners to review rules or programs adopted by an agency
• Reviewing  rules promulgated by an agency to determine whether a rule places an unnecessary burden on small business and make recommendations to the agency to mitigate the adverse effects
• Reviewing agency rules in conjunction with the agency sunset review process

The duties of the Small Business Advocate include:
•    Serving as principal advocate in the State on behalf of small businesses, including, but not limited to, advisory participation in the consideration of all legislation and administrative rules that affect small businesses, and advocacy on state policy and programs related to small businesses on disaster preparedness and recovery including providing technical assistance
• Representing the views and interests of small businesses before other state agencies whose policies and activities may affect small businesses
• Receiving and respond to complaints from small businesses concerning the actions of state agencies and the operative effects of state laws and regulations adversely affecting those businesses.  The advocate shall establish an annual process for small businesses to nominate agency rules or programs for reform. The advocate shall publish those nominations online and update the status of agency action.

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; and creating a review process utilizing the Office of Program Analysis and Government Accountability when an agency does not utilize an alternative rule offered by the Council.

 

NEWS FROM THE GOVERNOR’S OFFICE

 

Governor Crist Joins Bill Gates For Inter-American Development Bank Annual Meeting

Governor Charlie Crist on April 4, 2008 attended the 49th annual meeting of the Inter-American Development Bank (IDB) Board of Governors where he met with Microsoft Corporation Chairman Bill Gates. The meeting is being hosted as a carbon-neutral event and will include a series of seminars on innovation in energy, trade and competitiveness, and partnerships for development that promote innovative ways of combating poverty.  To read the complete story, click here.

 

Governor Crist Appoints Two To The Florida Transportation Commission

Governor Charlie Crist on April 1, 2008 announced the following appointments to the Florida Transportation Commission:
· Manuel “Manny” Rose, 47, of Clearwater, president and founder, Rose Radiology Centers Inc., succeeding James Holton, appointed for a term beginning April 1, 2008, and ending September 30, 2011.
· Joseph Mazurkiewicz, 55, of Fort Myers, president, BJM Consulting Inc., succeeding Janet Watermeier, appointed for a term beginning April 1, 2008, and ending September 30, 2011.

 

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.

 

 

Should you have any questions or comments, please contact:

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