Senate Bill 2540

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    Florida Senate - 1999                                  SB 2540

    By Senator Bronson





    18-1461-99

  1                      A bill to be entitled

  2         An act relating to the commercial space

  3         industry; amending s. 14.2015, F.S.; providing

  4         for the Spaceport Florida Authority to become

  5         part of the economic development functions of

  6         the Office of Tourism, Trade, and Economic

  7         Development; amending s. 196.012, F.S.;

  8         redefining the term "governmental purpose";

  9         amending s. 196.1994, F.S.; expanding the space

10         laboratories exemption from ad valorem

11         taxation; amending s. 212.02, F.S.; redefining

12         the term "retail sale" and defining the term

13         "space operations"; providing legislative

14         intent; amending ss. 212.031, 212.04, 212.06,

15         212.08, F.S.; providing for exemptions from the

16         tax on sales, use, and other transactions;

17         providing legislative intent; amending s.

18         288.063, F.S.; authorizing the Spaceport

19         Florida Authority to make recommendations about

20         and to enter into contracts for transportation

21         projects; amending s. 288.075, F.S.; adding the

22         Spaceport Florida Authority to a list of

23         economic development agencies whose records are

24         confidential; amending s. 288.108, F.S.;

25         providing for the qualification of

26         space-related development as a new high-impact

27         sector business; amending s. 288.35, F.S.;

28         redefining the term "government agency";

29         amending s. 288.901, F.S.; adding a member to

30         the board of directors of Enterprise Florida,

31         Inc.; amending s. 288.905, F.S.; adding

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  1         aerospace economic development to the

  2         Enterprise Florida, Inc., strategic plan for

  3         the state; amending s. 288.9412, F.S.; adding a

  4         member to the board of directors of the

  5         International Trade and Economic Development

  6         Board; amending s. 288.9415, F.S.; authorizing

  7         the Spaceport Florida Authority to apply for

  8         international trade grants; amending s.

  9         288.975, 288.976, 288.977, 288.980, F.S.;

10         providing for the Spaceport Florida Authority

11         to become involved with military base closure

12         and reuse; amending s. 331.305, F.S.;

13         authorizing Spaceport Florida Authority

14         personnel to participate in specified education

15         and training; creating ss. 331.370, 331.371,

16         331.372, 331.373, 331.374, 331.375, 331.377,

17         331.378, 331.379, F.S.; creating the Florida

18         Commercial Space Financing Corporation Act;

19         providing legislative intent; defining terms;

20         providing for the powers of the corporation;

21         authorizing fees to defray operating expenses;

22         creating a board of directors and specifying

23         its powers and duties; providing for the board

24         to appoint a president to administer the

25         programs of the corporation; requiring an audit

26         and review by other agencies; providing for

27         revenues; creating s. 331.380, F.S.; creating

28         the Florida Space Industry and Research

29         Facility Development Program within the

30         Spaceport Florida Authority to finance space

31         industry research, manufacturing, and other

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  1         support programs; providing for funding and the

  2         deposit of funds into the Florida Spaceport

  3         Commercial Financing Corporation Trust Fund;

  4         creating s. 331.381, F.S.; creating the

  5         Spaceport Management Council within the

  6         Spaceport Florida Authority to coordinate

  7         activities increasing the operability of space

  8         launch facilities; providing for the membership

  9         and duties of an executive board and the Space

10         Industry Committee within the Spaceport

11         Management Council; providing for assistance

12         from other state agencies; providing

13         appropriations; providing an effective date.

14

15  Be It Enacted by the Legislature of the State of Florida:

16

17         Section 1.  Paragraphs (e) and (i) of subsection (2)

18  and paragraphs (a) and (d) of subsection (9) of section

19  14.2015, Florida Statutes, 1998 Supplement, are amended to

20  read:

21         14.2015  Office of Tourism, Trade, and Economic

22  Development; creation; powers and duties.--

23         (2)  The purpose of the Office of Tourism, Trade, and

24  Economic Development is to assist the Governor in working with

25  the Legislature, state agencies, business leaders, and

26  economic development professionals to formulate and implement

27  coherent and consistent policies and strategies designed to

28  provide economic opportunities for all Floridians.  To

29  accomplish such purposes, the Office of Tourism, Trade, and

30  Economic Development shall:

31

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  1         (e)  Assist the Governor, in cooperation with

  2  Enterprise Florida, Inc., and the Florida Commission on

  3  Tourism, and the Spaceport Florida Authority in preparing an

  4  annual report to the Legislature on the state of the business

  5  climate in Florida and on the state of economic development in

  6  Florida which will include the identification of problems and

  7  the recommendation of solutions.  This report shall be

  8  submitted to the President of the Senate, the Speaker of the

  9  House of Representatives, the Senate Minority Leader, and the

10  House Minority Leader by January 1 of each year, and it shall

11  be in addition to the Governor's message to the Legislature

12  under the State Constitution and any other economic reports

13  required by law.

14         (i)  Prepare and submit as a separate budget entity a

15  unified budget request for tourism, trade, and economic

16  development in accordance with chapter 216 for, and in

17  conjunction with, Enterprise Florida, Inc., and its boards,

18  the Florida Commission on Tourism and its direct-support

19  organization, the Florida Black Business Investment Board, and

20  the direct-support organizations created to promote the

21  entertainment and sports industries, and the Spaceport Florida

22  Authority.

23         (9)(a)  Subject to the cooperative recommendations of

24  Enterprise Florida, Inc., and the Florida Commission on

25  Tourism, and the Florida Spaceport Authority and also to the

26  approval of the Governor, the Office of Tourism, Trade, and

27  Economic Development is authorized to expend appropriated

28  state and federal funds for general economic development

29  grants. The office shall establish criteria for the award of

30  grants, including criteria relating to highest economic return

31  for the state as a whole, or a particular region, county,

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  1  city, or community, ability to properly administer grant

  2  funds, and such other matters deemed necessary and appropriate

  3  to further the purposes of this subsection. The office shall

  4  expend all funds in accordance with state law and shall use

  5  such appropriations to supplement the financial support of:

  6         1.  Programs that have a substantial economic

  7  significance, giving emphasis to programs that benefit the

  8  state as a whole.

  9         2.  Programs with a high potential for match funding

10  from nonstate sources.

11         3.  Economic development programs for which no other

12  state grants are available.

13         4.  Rural areas and distressed urban areas.

14         (d)  The office shall not award any new grant which

15  will, in whole or in part, inure to the personal benefit of

16  any board member of Enterprise Florida, Inc., or the Florida

17  Commission on Tourism, or the Spaceport Florida Authority

18  during that member's term of office, if the board member

19  participated in the vote of the board or panel thereof

20  recommending the award. However, this subsection does not

21  prohibit the office from awarding a grant to an entity with

22  which a board member is associated.

23         Section 2.  Subsection (6) of section 196.012, Florida

24  Statutes, is amended to read:

25         196.012  Definitions.--For the purpose of this chapter,

26  the following terms are defined as follows, except where the

27  context clearly indicates otherwise:

28         (6)  Governmental, municipal, or public purpose or

29  function shall be deemed to be served or performed when the

30  lessee under any leasehold interest created in property of the

31  United States, the state or any of its political subdivisions,

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  1  or any municipality, agency, special district, authority, or

  2  other public body corporate of the state is demonstrated to

  3  perform a function or serve a governmental purpose which could

  4  properly be performed or served by an appropriate governmental

  5  unit or which is demonstrated to perform a function or serve a

  6  purpose which would otherwise be a valid subject for the

  7  allocation of public funds. For purposes of the preceding

  8  sentence, an activity undertaken by a lessee which is

  9  permitted under the terms of its lease of real property

10  designated as an aviation area on an airport layout plan which

11  has been approved by the Federal Aviation Administration and

12  which real property is used for the administration, operation,

13  business offices and activities related specifically thereto

14  in connection with the conduct of an aircraft full service

15  fixed base operation which provides goods and services to the

16  general aviation public in the promotion of air commerce shall

17  be deemed an activity which serves a governmental, municipal,

18  or public purpose or function. Any activity undertaken by a

19  lessee which is permitted under the terms of its lease of real

20  property designated as a public airport as defined in s.

21  332.004(14) by municipalities, agencies, special districts,

22  authorities, or other public bodies corporate and public

23  bodies politic of the state, or which is located in a

24  deepwater port identified in s. 403.021(9)(b) and owned by one

25  of the foregoing governmental units, subject to a leasehold or

26  other possessory interest of a nongovernmental lessee that is

27  deemed to perform an aviation or airport or maritime or port

28  purpose or operation shall be deemed an activity that serves a

29  governmental, municipal, or public purpose. The use by a

30  lessee, licensee, or management company of real property or a

31  portion thereof as a convention center, visitor center, sports

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  1  facility with permanent seating, concert hall, arena, stadium,

  2  park, or beach is deemed a use that serves a governmental,

  3  municipal, or public purpose or function when access to the

  4  property is open to the general public with or without a

  5  charge for admission. If property deeded to a municipality by

  6  the United States is subject to a requirement that the Federal

  7  Government, through a schedule established by the Secretary of

  8  the Interior, determine that the property is being maintained

  9  for public historic preservation, park, or recreational

10  purposes and if those conditions are not met the property will

11  revert back to the Federal Government, then such property

12  shall be deemed to serve a municipal or public purpose. The

13  term "governmental purpose" also includes a direct use of

14  property on federal lands in connection with the Federal

15  Government's Space Exploration Program or spaceport activities

16  as defined in s. 212.02(22). Real property and tangible

17  personal property owned by the Federal Government or the

18  Spaceport Florida Authority and used for defense and space

19  exploration purposes or which is put to a use in support

20  thereof shall be deemed to perform an essential national

21  governmental purpose and shall be exempt. "Owned by the

22  lessee" as used in this chapter does not include personal

23  property, buildings, or other real property improvements used

24  for the administration, operation, business offices and

25  activities related specifically thereto in connection with the

26  conduct of an aircraft full service fixed based operation

27  which provides goods and services to the general aviation

28  public in the promotion of air commerce provided that the real

29  property is designated as an aviation area on an airport

30  layout plan approved by the Federal Aviation Administration.

31  For purposes of determination of "ownership," buildings and

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  1  other real property improvements which will revert to the

  2  airport authority or other governmental unit upon expiration

  3  of the term of the lease shall be deemed "owned" by the

  4  governmental unit and not the lessee. Providing two-way

  5  telecommunications services to the public for hire by the use

  6  of a telecommunications facility, as defined in s. 364.02(13),

  7  and for which a certificate is required under chapter 364 does

  8  not constitute an exempt use for purposes of s. 196.199,

  9  unless the telecommunications services are provided by the

10  operator of a public-use airport, as defined in s. 332.004,

11  for the operator's provision of telecommunications services

12  for the airport or its tenants, concessionaires, or licensees,

13  or unless the telecommunications services are provided by a

14  public hospital.  However, property that is being used to

15  provide such telecommunications services on or before October

16  1, 1997, shall remain exempt, but such exemption expires

17  October 1, 2004.

18         Section 3.  Section 196.1994, Florida Statutes, is

19  amended to read:

20         196.1994  Space laboratories exemption.--

21         (1)  Notwithstanding other provisions of this chapter,

22  modules, racks, lockers, and their necessary subsystems owned

23  by any person and intended for use as space laboratories

24  launched into space aboard the space shuttle or other space

25  transportation systems for the primary purpose of conducting

26  scientific research in space are deemed to carry out a

27  scientific purpose and are exempt from ad valorem taxation.

28         (2)  This section is repealed July 1, 2004.

29         Section 4.  Paragraph (a) of subsection (14) of section

30  212.02, Florida Statutes, 1998 Supplement, is amended, present

31  subsections (24) through (33) are redesignated as subsections

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  1  (25) through (34), respectively, and new subsection (24) is

  2  added to that section, to read:

  3         212.02  Definitions.--The following terms and phrases

  4  when used in this chapter have the meanings ascribed to them

  5  in this section, except where the context clearly indicates a

  6  different meaning:

  7         (14)(a)  "Retail sale" or a "sale at retail" means a

  8  sale to a consumer or to any person for any purpose other than

  9  for resale in the form of tangible personal property or

10  services taxable under this chapter, and includes all such

11  transactions that may be made in lieu of retail sales or sales

12  at retail. A sale for resale includes a sale of qualifying

13  property as defined in this paragraph. The term "qualifying

14  property" means tangible personal property used or consumed by

15  a government contractor in the performance of a qualifying

16  contract, as defined in s. 212.06(17)(a), the cost of which

17  property is allocated or charged as a direct item of cost to

18  such contract, and title to which property vests in or passes

19  to the government under the contract. The contractor's use of

20  qualifying property in performing a qualifying contract is not

21  a "use" within the meaning of subsection (20) or any other

22  provision of this chapter.

23         (24)  "Space operations" means the processing, fueling,

24  launching, and controlling of space flight vehicles and

25  satellites, including related assembly and test operations,

26  gas liquification and co-generation facilities; and related

27  space activities as determined by the Office of Tourism,

28  Trade, and Economic Development.

29         Section 5.  It is the intent of the Legislature that

30  the amendment to section 212.20(14), Florida Statutes, by this

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  1  act clarifies and confirms existing law with respect to the

  2  taxes imposed by chapter 212, Florida Statutes.

  3         Section 6.  Paragraph (a) of subsection (1) of section

  4  212.031, Florida Statutes, 1998 Supplement, is amended to

  5  read:

  6         212.031  Lease or rental of or license in real

  7  property.--

  8         (1)(a)  It is declared to be the legislative intent

  9  that every person is exercising a taxable privilege who

10  engages in the business of renting, leasing, letting, or

11  granting a license for the use of any real property unless

12  such property is:

13         1.  Assessed as agricultural property under s. 193.461.

14         2.  Used exclusively as dwelling units.

15         3.  Property subject to tax on parking, docking, or

16  storage spaces under s. 212.03(6).

17         4.  Recreational property or the common elements of a

18  condominium when subject to a lease between the developer or

19  owner thereof and the condominium association in its own right

20  or as agent for the owners of individual condominium units or

21  the owners of individual condominium units. However, only the

22  lease payments on such property shall be exempt from the tax

23  imposed by this chapter, and any other use made by the owner

24  or the condominium association shall be fully taxable under

25  this chapter.

26         5.  A public or private street or right-of-way occupied

27  or used by a utility for utility purposes.

28         6.  A public street or road which is used for

29  transportation purposes.

30         7.  Property used at an airport exclusively for the

31  purpose of aircraft landing or aircraft taxiing or property

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  1  used by an airline for the purpose of loading or unloading

  2  passengers or property onto or from aircraft or for fueling

  3  aircraft.

  4         8.a.  Property used at a port authority, as defined in

  5  s. 315.02(2), exclusively for the purpose of oceangoing

  6  vessels or tugs docking, or such vessels mooring on property

  7  used by a port authority for the purpose of loading or

  8  unloading passengers or cargo onto or from such a vessel, or

  9  property used at a port authority for fueling such vessels, or

10  to the extent that the amount paid for the use of any property

11  at the port is based on the charge for the amount of tonnage

12  actually imported or exported through the port by a tenant.

13         b.  The amount charged for the use of any property at

14  the port in excess of the amount charged for tonnage actually

15  imported or exported shall remain subject to tax except as

16  provided in sub-subparagraph a.

17         9.  Property within spaceport territory leased from the

18  Spaceport Florida Authority which is used for spaceport

19  activities or space operations.

20         10.9.  Property used as an integral part of the

21  performance of qualified production services.  As used in this

22  subparagraph, the term "qualified production services" means

23  any activity or service performed directly in connection with

24  the production of a qualified motion picture, as defined in s.

25  212.06(1)(b), and includes:

26         a.  Photography, sound and recording, casting, location

27  managing and scouting, shooting, creation of special and

28  optical effects, animation, adaptation (language, media,

29  electronic, or otherwise), technological modifications,

30  computer graphics, set and stage support (such as

31  electricians, lighting designers and operators, greensmen,

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  1  prop managers and assistants, and grips), wardrobe (design,

  2  preparation, and management), hair and makeup (design,

  3  production, and application), performing (such as acting,

  4  dancing, and playing), designing and executing stunts,

  5  coaching, consulting, writing, scoring, composing,

  6  choreographing, script supervising, directing, producing,

  7  transmitting dailies, dubbing, mixing, editing, cutting,

  8  looping, printing, processing, duplicating, storing, and

  9  distributing;

10         b.  The design, planning, engineering, construction,

11  alteration, repair, and maintenance of real or personal

12  property including stages, sets, props, models, paintings, and

13  facilities principally required for the performance of those

14  services listed in sub-subparagraph a.; and

15         c.  Property management services directly related to

16  property used in connection with the services described in

17  sub-subparagraphs a. and b.

18         11.10.  Leased, subleased, or rented to a person

19  providing food and drink concessionaire services within the

20  premises of a movie theater, a business operated under a

21  permit issued pursuant to chapter 550, or any publicly owned

22  arena, sports stadium, convention hall, exhibition hall,

23  auditorium, or recreational facility.  A person providing

24  retail concessionaire services involving the sale of food and

25  drink or other tangible personal property within the premises

26  of an airport shall be subject to tax on the rental of real

27  property used for that purpose, but shall not be subject to

28  the tax on any license to use the property.  For purposes of

29  this subparagraph, the term "sale" shall not include the

30  leasing of tangible personal property.

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  1         12.11.  Property occupied pursuant to an instrument

  2  calling for payments which the department has declared, in a

  3  Technical Assistance Advisement issued on or before March 15,

  4  1993, to be nontaxable pursuant to rule 12A-1.070(19)(c),

  5  Florida Administrative Code; provided that this subparagraph

  6  shall only apply to property occupied by the same person

  7  before and after the execution of the subject instrument and

  8  only to those payments made pursuant to such instrument,

  9  exclusive of renewals and extensions thereof occurring after

10  March 15, 1993.

11         Section 7.  Paragraph (a) of subsection (2) of section

12  212.04, Florida Statutes, 1998 Supplement, is amended to read:

13         212.04  Admissions tax; rate, procedure, enforcement.--

14         (2)(a)1.  No tax shall be levied on admissions to

15  athletic or other events sponsored by elementary schools,

16  junior high schools, middle schools, high schools, community

17  colleges, public or private colleges and universities, deaf

18  and blind schools, facilities of the youth services programs

19  of the Department of Children and Family Services, and state

20  correctional institutions when only student, faculty, or

21  inmate talent is used. However, this exemption shall not apply

22  to admission to athletic events sponsored by an institution

23  within the State University System, and the proceeds of the

24  tax collected on such admissions shall be retained and used by

25  each institution to support women's athletics as provided in

26  s. 240.533(3)(c).

27         2.a.  No tax shall be levied on dues, membership fees,

28  and admission charges imposed by not-for-profit sponsoring

29  organizations. To receive this exemption, the sponsoring

30  organization must qualify as a not-for-profit entity under the

31

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  1  provisions of s. 501(c)(3) of the Internal Revenue Code of

  2  1954, as amended.

  3         b.  No tax imposed by this section and not actually

  4  collected before August 1, 1992, shall be due from any museum

  5  or historic building owned by any political subdivision of the

  6  state.

  7         3.  No tax shall be levied on an admission paid by a

  8  student, or on the student's behalf, to any required place of

  9  sport or recreation if the student's participation in the

10  sport or recreational activity is required as a part of a

11  program or activity sponsored by, and under the jurisdiction

12  of, the student's educational institution, provided his or her

13  attendance is as a participant and not as a spectator.

14         4.  No tax shall be levied on admissions to the

15  National Football League championship game, on admissions to

16  any semifinal game or championship game of a national

17  collegiate tournament, or on admissions to a Major League

18  Baseball all-star game.

19         5.  A participation fee or sponsorship fee imposed by a

20  governmental entity as described in s. 212.08(6) for an

21  athletic or recreational program is exempt when the

22  governmental entity by itself, or in conjunction with an

23  organization exempt under s. 501(c)(3) of the Internal Revenue

24  Code of 1954, as amended, sponsors, administers, plans,

25  supervises, directs, and controls the athletic or recreational

26  program.

27         6.  Also exempt from the tax imposed by this section to

28  the extent provided in this subparagraph are admissions to

29  live theater, live opera, or live ballet productions in this

30  state which are sponsored by an organization that has received

31  a determination from the Internal Revenue Service that the

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  1  organization is exempt from federal income tax under s.

  2  501(c)(3) of the Internal Revenue Code of 1954, as amended, if

  3  the organization actively participates in planning and

  4  conducting the event, is responsible for the safety and

  5  success of the event, is organized for the purpose of

  6  sponsoring live theater, live opera, or live ballet

  7  productions in this state, has more than 10,000 subscribing

  8  members and has among the stated purposes in its charter the

  9  promotion of arts education in the communities which it

10  serves, and will receive at least 20 percent of the net

11  profits, if any, of the events which the organization sponsors

12  and will bear the risk of at least 20 percent of the losses,

13  if any, from the events which it sponsors if the organization

14  employs other persons as agents to provide services in

15  connection with a sponsored event. Prior to March 1 of each

16  year, such organization may apply to the department for a

17  certificate of exemption for admissions to such events

18  sponsored in this state by the organization during the

19  immediately following state fiscal year. The application shall

20  state the total dollar amount of admissions receipts collected

21  by the organization or its agents from such events in this

22  state sponsored by the organization or its agents in the year

23  immediately preceding the year in which the organization

24  applies for the exemption. Such organization shall receive the

25  exemption only to the extent of $1.5 million multiplied by the

26  ratio that such receipts bear to the total of such receipts of

27  all organizations applying for the exemption in such year;

28  however, in no event shall such exemption granted to any

29  organization exceed 6 percent of such admissions receipts

30  collected by the organization or its agents in the year

31  immediately preceding the year in which the organization

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  1  applies for the exemption. Each organization receiving the

  2  exemption shall report each month to the department the total

  3  admissions receipts collected from such events sponsored by

  4  the organization during the preceding month and shall remit to

  5  the department an amount equal to 6 percent of such receipts

  6  reduced by any amount remaining under the exemption. Tickets

  7  for such events sold by such organizations shall not reflect

  8  the tax otherwise imposed under this section.

  9         7.  Also exempt from the tax imposed by this section to

10  the extent provided in this subparagraph are admissions to

11  tours of a national space center, to the extent that the

12  concessionaire or operator of the tours remits to the National

13  Aeronautics and Space Administration's Florida Space Grant

14  Consortium an amount equivalent to the tax that would

15  otherwise be imposed by this section. The Florida Space Grant

16  Consortium shall use funds received pursuant to this

17  subparagraph exclusively for space-related research grants to

18  state universities and independent colleges and universities,

19  community colleges, public school districts, and

20  not-for-profit educational organizations within the state. In

21  awarding these grants, the Florida Space Grant Consortium

22  shall give consideration to proposals relating to the

23  development of commercial space-related technology, Center of

24  Excellence initiatives at the John F. Kennedy Space Center,

25  and new initiatives by NASA and other federal agencies; and

26  shall consult with the Spaceport Florida Authority to maximize

27  consistency with the state space-related development

28  activities established in part II of chapter 331.

29         8.7.  Also exempt from the tax imposed by this section

30  are entry fees for participation in freshwater fishing

31  tournaments.

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  1         9.8.  Also exempt from the tax imposed by this section

  2  are participation or entry fees charged to participants in a

  3  game, race, or other sport or recreational event if spectators

  4  are charged a taxable admission to such event.

  5         10.9.  No tax shall be levied on admissions to any

  6  postseason collegiate football game sanctioned by the National

  7  Collegiate Athletic Association.

  8         Section 8.  Subsection (17) is added to section 212.06,

  9  Florida Statutes, 1998 Supplement, to read:

10         212.06  Sales, storage, use tax; collectible from

11  dealers; "dealer" defined; dealers to collect from purchasers;

12  legislative intent as to scope of tax.--

13         (17)(a)  The taxes imposed by this chapter do not apply

14  to the sale to or use by a government contractor of overhead

15  materials as defined in this paragraph. The term "overhead

16  materials" means any tangible personal property used or

17  consumed in the performance of a qualifying contract, as

18  defined in this paragraph, the cost of which is being

19  allocated, in whole or in part, to two or more contracts, at

20  least one of which is a qualifying contract, title to which

21  property vests in or passes to the government under the

22  contract. The term "qualifying contract" means a contract with

23  the United States Department of Defense or the National

24  Aeronautics and Space Administration, or a subcontract

25  thereunder, which relates to matters of national defense, to

26  space flight as defined in s. 212.02(23), or to other NASA or

27  Department of Defense aviation or aerospace efforts or

28  programs.

29         (b)  Notwithstanding paragraph (a), the tax is

30  applicable to 75 percent of the sales price or cost price of

31  such overhead materials from July 1, 1999, through June 30,

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  1  2000; to 50 percent of the sales price or cost price from July

  2  1, 2000, through June 30, 2001; and to 25 percent of the sales

  3  price or cost price from July 1, 2001, through June 30, 2002,

  4  after which date none of the sales price or cost price of such

  5  overhead materials is subject to any further taxes under this

  6  chapter.

  7         Section 9.  The amendment to section 212.06, Florida

  8  Statutes, by this act is not an expression of legislative

  9  intent as to the applicability of any tax to any sale or use

10  of overhead materials before July 1, 1999, nor does it imply

11  that transactions or costs not described in section 196.012,

12  Florida Statutes, as amended by this act are taxable.

13         Section 10.  Paragraph (b) of subsection (5) of section

14  212.08, Florida Statutes, 1998 Supplement, is amended and

15  paragraph (m) is added to that subsection to read:

16         212.08  Sales, rental, use, consumption, distribution,

17  and storage tax; specified exemptions.--The sale at retail,

18  the rental, the use, the consumption, the distribution, and

19  the storage to be used or consumed in this state of the

20  following are hereby specifically exempt from the tax imposed

21  by this chapter.

22         (5)  EXEMPTIONS; ACCOUNT OF USE.--

23         (b)  Machinery and equipment used to increase

24  productive output.--

25         1.  Industrial machinery and equipment purchased for

26  exclusive use in spaceport activities as defined in s. 212.02

27  or for use in new businesses which manufacture, process,

28  compound, or produce for sale, or for exclusive use in

29  spaceport activities as defined in s. 212.02, items of

30  tangible personal property at fixed locations are exempt from

31  the tax imposed by this chapter upon an affirmative showing by

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  1  the taxpayer to the satisfaction of the department that such

  2  items are used in a new business in this state. Such purchases

  3  must be made prior to the date the business first begins its

  4  productive operations, and delivery of the purchased item must

  5  be made within 12 months of that date.

  6         2.a.  Industrial machinery and equipment purchased for

  7  exclusive use in spaceport activities as defined in s. 212.02

  8  or for use in expanding manufacturing facilities or plant

  9  units which manufacture, process, compound, or produce for

10  sale, or for exclusive use in spaceport activities as defined

11  in s. 212.02, items of tangible personal property at fixed

12  locations in this state are exempt from any amount of tax

13  imposed by this chapter in excess of $50,000 per calendar year

14  upon an affirmative showing by the taxpayer to the

15  satisfaction of the department that such items are used to

16  increase the productive output of such expanded business by

17  not less than 10 percent.

18         b.  Notwithstanding any other provision of this

19  section, industrial machinery and equipment purchased for use

20  in expanding printing manufacturing facilities or plant units

21  that manufacture, process, compound, or produce for sale items

22  of tangible personal property at fixed locations in this state

23  are exempt from any amount of tax imposed by this chapter upon

24  an affirmative showing by the taxpayer to the satisfaction of

25  the department that such items are used to increase the

26  productive output of such an expanded business by not less

27  than 10 percent.

28         3.a.  To receive an exemption provided by subparagraph

29  1. or subparagraph 2., a qualifying business entity shall

30  apply to the department for a temporary tax exemption permit.

31  The application shall state that a new business exemption or

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  1  expanded business exemption is being sought. Upon a tentative

  2  affirmative determination by the department pursuant to

  3  subparagraph 1. or subparagraph 2., the department shall issue

  4  such permit.

  5         b.  The applicant shall be required to maintain all

  6  necessary books and records to support the exemption. Upon

  7  completion of purchases of qualified machinery and equipment

  8  pursuant to subparagraph 1. or subparagraph 2., the temporary

  9  tax permit shall be delivered to the department or returned to

10  the department by certified or registered mail.

11         c.  If, in a subsequent audit conducted by the

12  department, it is determined that the machinery and equipment

13  purchased as exempt under subparagraph 1. or subparagraph 2.

14  did not meet the criteria mandated by this paragraph or if

15  commencement of production did not occur, the amount of taxes

16  exempted at the time of purchase shall immediately be due and

17  payable to the department by the business entity, together

18  with the appropriate interest and penalty, computed from the

19  date of purchase, in the manner prescribed by this chapter.

20         d.  In the event a qualifying business entity fails to

21  apply for a temporary exemption permit or if the tentative

22  determination by the department required to obtain a temporary

23  exemption permit is negative, a qualifying business entity

24  shall receive the exemption provided in subparagraph 1. or

25  subparagraph 2. through a refund of previously paid taxes. No

26  refund may be made for such taxes unless the criteria mandated

27  by subparagraph 1. or subparagraph 2. have been met and

28  commencement of production has occurred.

29         4.  The department shall promulgate rules governing

30  applications for, issuance of, and the form of temporary tax

31  exemption permits; provisions for recapture of taxes; and the

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  1  manner and form of refund applications and may establish

  2  guidelines as to the requisites for an affirmative showing of

  3  increased productive output, commencement of production, and

  4  qualification for exemption.

  5         5.  The exemptions provided in subparagraphs 1. and 2.

  6  do not apply to machinery or equipment purchased or used by

  7  electric utility companies, communications companies,

  8  phosphate or other solid minerals severance, mining, or

  9  processing operations, oil or gas exploration or production

10  operations, publishing firms that do not export at least 50

11  percent of their finished product out of the state, any firm

12  subject to regulation by the Division of Hotels and

13  Restaurants of the Department of Business and Professional

14  Regulation, or any firm which does not manufacture, process,

15  compound, or produce for sale, or for exclusive use in

16  spaceport activities as defined in s. 212.02, items of

17  tangible personal property.

18         6.  For the purposes of the exemptions provided in

19  subparagraphs 1. and 2., these terms have the following

20  meanings:

21         a.  "Industrial machinery and equipment" means "section

22  38 property" as defined in s. 48(a)(1)(A) and (B)(i) of the

23  Internal Revenue Code, provided "industrial machinery and

24  equipment" shall be construed by regulations adopted by the

25  Department of Revenue to mean tangible property used as an

26  integral part of the manufacturing, processing, compounding,

27  or producing for sale, or for exclusive use in spaceport

28  activities as defined in s. 212.02, of items of tangible

29  personal property. Such term includes parts and accessories

30  only to the extent that the exemption thereof is consistent

31  with the provisions of this paragraph.

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  1         b.  "Productive output" means the number of units

  2  actually produced by a single plant or operation in a single

  3  continuous 12-month period, irrespective of sales. Increases

  4  in productive output shall be measured by the output for 12

  5  continuous months immediately following the completion of

  6  installation of such machinery or equipment over the output

  7  for the 12 continuous months immediately preceding such

  8  installation. However, if a different 12-month continuous

  9  period of time would more accurately reflect the increase in

10  productive output of machinery and equipment purchased to

11  facilitate an expansion, the increase in productive output may

12  be measured during that 12-month continuous period of time if

13  such time period is mutually agreed upon by the Department of

14  Revenue and the expanding business prior to the commencement

15  of production; provided, however, in no case may such time

16  period begin later than 2 years following the completion of

17  installation of the new machinery and equipment. The units

18  used to measure productive output shall be physically

19  comparable between the two periods, irrespective of sales.

20         7.  Notwithstanding any other provision in this

21  paragraph to the contrary, in order to receive the exemption

22  provided in this paragraph a taxpayer must register with the

23  WAGES Program Business Registry established by the local WAGES

24  coalition for the area in which the taxpayer is located.  Such

25  registration establishes a commitment on the part of the

26  taxpayer to hire WAGES program participants to the maximum

27  extent possible consistent with the nature of their business.

28         (m)  Machinery and equipment used in space operations,

29  space flight, and space research and development.--

30         1.  Industrial machinery and equipment purchased for

31  use in space operations facilities certified under

                                  22

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  1  subparagraph 5. for space operations, or to manufacture,

  2  process, compound, or produce space flight products for sale

  3  or for use by these facilities are exempt from the tax imposed

  4  by this chapter.

  5         2.  Machinery and equipment are exempt from the tax

  6  imposed by this chapter if purchased for use predominately in

  7  space research and development activities in a space research

  8  and development facility certified under subparagraph 5.

  9         3.  In addition to meeting the criteria mandated by

10  subparagraph 1. or subparagraph 2., a business must be

11  certified by the Office of Tourism, Trade, and Economic

12  Development as authorized in this paragraph in order to

13  qualify for exemption under this paragraph.

14         4.  For items purchased tax exempt pursuant to this

15  paragraph, possession of a written certification from the

16  purchaser, certifying the purchaser's entitlement to exemption

17  pursuant to this paragraph, relieves the seller of the

18  responsibility of collecting the tax on the sale of such

19  items, and the department shall look solely to the purchaser

20  for recovery of the tax if it determines that the purchaser

21  was not entitled to the exemption.

22         5.a.  To be eligible to receive the exemption provided

23  by subparagraph 1. or subparagraph 2., a qualifying business

24  entity shall apply to the Spaceport Florida Authority. The

25  application shall be developed by the Office of Tourism,

26  Trade, and Economic Development in consultation with the

27  Spaceport Florida Authority.

28         b.  The Spaceport Florida Authority shall review each

29  submitted application and information and determine whether or

30  not the application is complete within 5 working days. Once an

31  application is complete, the Spaceport Florida Authority

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  1  shall, within 10 working days, evaluate the application and

  2  recommend approval or disapproval of the application to the

  3  Office of Tourism, Trade, and Economic Development.

  4         c.  Upon receipt of the application and recommendation

  5  from the Spaceport Florida Authority, the Office of Tourism,

  6  Trade, and Economic Development shall certify within 5 working

  7  days those applicants who are found to meet the requirements

  8  of this section and notify the applicant, the Spaceport

  9  Florida Authority, and the department of the certification. If

10  the Office of Tourism, Trade, and Economic Development finds

11  that the applicant does not meet the requirements of this

12  section, it shall notify the applicant and the Spaceport

13  Florida Authority within 10 working days that the application

14  for certification has been denied and the reasons for denial.

15  The office of Tourism, Trade, and Economic Development has

16  final approval authority for certification under this section.

17         6.a.  A business certified to receive this exemption

18  may apply once each year for the exemption.

19         b.  The first claim submitted by a business may include

20  all eligible expenditures made after the date the business was

21  certified.

22         c.  To apply for the annual exemption, the business

23  shall submit a claim to the Office of Tourism, Trade, and

24  Economic Development, which claim indicates and documents the

25  sales and use taxes otherwise payable on eligible machinery

26  and equipment. The claim must also indicate, for program

27  evaluation purposes only, the average number of full-time

28  equivalent employees at the facility over the preceding

29  calendar year, the average wage and benefits paid to those

30  employees over the preceding calendar year, and the total

31  investment made in real and tangible personal property over

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  1  the preceding calendar year or, for the first claim submitted,

  2  since the date of certification. The department shall assist

  3  the Office of Tourism, Trade, and Economic Development in

  4  evaluating and verifying information provided in the

  5  application for exemption.

  6         d.  The Office of Tourism, Trade, and Economic

  7  Development may use the information reported on the claims for

  8  evaluation purposes only and shall prepare an annual report on

  9  the exemption program and its cost and impact. The annual

10  report for the preceding fiscal year shall be submitted to the

11  Governor, the President of the Senate, and the Speaker of the

12  House of Representatives by September 30 of each fiscal year.

13  This report may be submitted in conjunction with the annual

14  report required in s. 288.095(3)(c).

15         7.  A business certified to receive this exemption may

16  elect to designate one or more state universities or community

17  colleges as recipients of up to 100 percent of the amount of

18  the exemption for which they may qualify. To receive these

19  funds, the institution must agree to match the funds so earned

20  with equivalent cash, programs, services, or other in-kind

21  support on a one-to-one basis in the pursuit of research and

22  development projects as requested by the certified business.

23  The rights to any patents, royalties, or real or intellectual

24  property must be vested in the business unless otherwise

25  agreed to by the business and the university or community

26  college.

27         8.  As used in this paragraph, the term:

28         a.  "Predominately" means at least 50 percent of the

29  time in qualifying research and development.

30         b.  "Research and development" means basic and applied

31  research in the sciences or engineering, as well as the

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  1  design, development, and testing or prototypes or processes of

  2  new or improved products. Research and development does not

  3  include market research, routine consumer product testing,

  4  sales research, research in the social sciences or psychology,

  5  nontechnological activities, or technical services.

  6         c.  "Space operations" means the processing, fueling,

  7  and launching of vehicles and satellites to enable space

  8  flight, including related assembly and test operations, gas

  9  liquification and co-generation facilities; and related space

10  operations activities as determined by the Office of Tourism,

11  Trade, and Economic Development. The term does not include the

12  sale of telecommunications products or services.

13         9.  This exemption is not affected by the failure of a

14  launch to occur or the destruction of a launch vehicle or any

15  components thereof.

16         Section 11.  Subsections (1) and (4) of section

17  288.063, Florida Statutes, 1998 Supplement, are amended,

18  present subsections (7), (8), and (9) are redesignated as

19  subsections (9), (10), and (11), respectively, and new

20  subsections (7) and (8) are added to that section to read:

21         288.063  Contracts for transportation projects.--

22         (1)  The Office of Tourism, Trade, and Economic

23  Development is authorized to make, and based on a

24  recommendation from Enterprise Florida, Inc., or the Spaceport

25  Florida Authority, to approve, expenditures and enter into

26  contracts for direct costs of transportation projects with the

27  appropriate governmental body. The Office of Tourism, Trade,

28  and Economic Development has final approval authority for any

29  project under this section.

30         (4)  The Office of Tourism, Trade, and Economic

31  Development may adopt criteria by which transportation

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  1  projects are to be specified and identified. In approving

  2  transportation projects for funding, the Office of Tourism,

  3  Trade, and Economic Development shall consider factors

  4  including, but not limited to, the cost per job created or

  5  retained considering the amount of transportation funds

  6  requested; the average hourly rate of wages for jobs created;

  7  the reliance on the program as an inducement for the project's

  8  location decision; the amount of capital investment to be made

  9  by the business; the demonstrated local commitment; the

10  location of the project in an enterprise zone designated

11  pursuant to s. 290.0055; the location of the project in a

12  community development corporation service area as defined in

13  s. 290.035(2); the location of the project in a spaceport

14  territory as defined in s. 331.304; the unemployment rate of

15  the surrounding area; the poverty rate of the community; and

16  the adoption of an economic element as part of its local

17  comprehensive plan in accordance with s. 163.3177(7)(j). The

18  Office of Tourism, Trade, and Economic Development may contact

19  any agency it deems appropriate for additional input regarding

20  the approval of projects.

21         (7)  The Spaceport Florida Authority may be the

22  contracting agency when the project is within spaceport

23  territory as defined in s. 331.304.

24         (8)  The Spaceport Florida Authority may be considered

25  to be the local government when the project is within

26  spaceport territory as defined in s. 331.304.

27         Section 12.  Subsection (1) of section 288.075, Florida

28  Statutes, is amended to read:

29         288.075  Confidentiality of records.--

30         (1)  As used in this section, the term "economic

31  development agency" means the Division of Economic Development

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  1  of the Department of Commerce, any industrial development

  2  authority created in accordance with part III of chapter 159

  3  or by special law, the Spaceport Florida Authority created in

  4  part II of chapter 331, the public economic development agency

  5  that advises the county commission on the issuance of

  6  industrial revenue bonds of a county that does not have an

  7  industrial development authority created in accordance with

  8  part III of chapter 159 or by special law, or any research and

  9  development authority created in accordance with part V of

10  chapter 159. The term also includes any private agency,

11  person, partnership, corporation, or business entity when

12  authorized by the state, a municipality, or a county to

13  promote the general business interests or industrial interests

14  of the state or that municipality or county.

15         Section 13.  Paragraph (j) is added to subsection (6)

16  of section 288.108, Florida Statutes, to read:

17         288.108  High-impact business.--

18         (6)  SELECTION AND DESIGNATION OF HIGH-IMPACT

19  SECTORS.--

20         (j)  For the purposes of this subsection, a high-impact

21  sector consists of the commercial space-related development

22  opportunities for business, education, and government and

23  space-related economic growth and educational development

24  responsibilities assigned to the Spaceport Florida Authority

25  under s. 331.302. Enterprise Florida, Inc., shall develop and

26  implement its commercial space-related high-impact-sector

27  strategy in close consultation with the Spaceport Florida

28  Authority.

29         Section 14.  Subsection (2) of section 288.35, Florida

30  Statutes, is amended to read:

31

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  1         288.35  Definitions.--The following terms, wherever

  2  used or referred to in this part, shall have the following

  3  meanings:

  4         (2)  "Government agency" means the state or any county

  5  or political subdivision thereof; any state agency; any

  6  consolidated government of a county, and some or all of the

  7  municipalities located within said county; any chartered

  8  municipality in the state; and any of the institutions of such

  9  consolidated governments, counties, or municipalities.

10  Specifically included are airports, port authorities, and

11  industrial authorities, and the Spaceport Florida Authority.

12         Section 15.  Paragraph (l) is added to subsection (3)

13  of section 288.901, Florida Statutes, to read:

14         288.901  Enterprise Florida, Inc.; creation;

15  membership; organization; meetings; disclosure.--

16         (3)  Enterprise Florida, Inc., shall be governed by a

17  board of directors.  The board of directors shall consist of

18  the following members:

19         (l)  The chairperson of the Board of Supervisors of the

20  Spaceport Florida Authority.

21         Section 16.  Present paragraphs (i) and (j) of

22  subsection (2) of section 288.905, Florida Statutes, are

23  redesignated as paragraphs (j) and (k), respectively, and new

24  paragraph (i) is added to that subsection, present subsections

25  (5) and (6) of that section are redesignated as subsections

26  (6) and (7), respectively, and a new subsection (5) is added

27  to that section to read:

28         288.905  Duties of the board of directors of Enterprise

29  Florida, Inc.--

30         (2)  The board of directors shall, in conjunction with

31  the Office of Tourism, Trade, and Economic Development,

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  1  develop a strategic plan for economic development for the

  2  State of Florida.  Such plan shall be submitted to the

  3  Governor, the President of the Senate, the Speaker of the

  4  House of Representatives, the Senate Minority Leader, and the

  5  House Minority Leader by January 1, 1997, and shall be updated

  6  or modified before January 1, 1998, and annually thereafter.

  7  The plan must be approved by the board of directors prior to

  8  submission to the Governor and Legislature.  The plan shall

  9  include, but is not limited to:

10         (i)  Promotion and expansion of commercial and

11  governmental aerospace activities in this state, including

12  internationally marketing Florida-based aerospace companies

13  and services.

14         (5)  The board of directors shall coordinate the

15  aerospace economic development activities and policies of

16  Enterprise Florida, Inc., with the Spaceport Florida Authority

17  created in part II of chapter 331.

18         Section 17.  Paragraph (g) of subsection (2) of section

19  288.9412, Florida Statutes, is amended to read:

20         288.9412  International Trade and Economic Development

21  Board.--

22         (2)  The International Trade and Economic Development

23  Board shall be governed by a board of directors.  The board of

24  directors shall consist of the following members:

25         (g)  Members to be appointed by the Governor, subject

26  to confirmation by the Senate, consisting of the following:

27         1.  The chairperson of the World Trade Association of

28  Florida or the chairperson's designee.

29         2.  Two representatives from the state's deepwater

30  ports, chosen from a list of three names submitted to the

31  Governor by the Florida Ports Council. One representative

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  1  shall be from the Gulf of Mexico coast ports, and one

  2  representative shall be from the Atlantic coast ports.

  3         3.  The chairperson of the Florida Airport Managers

  4  Association or the chairperson's designee.

  5         4.  The chairperson of the Spaceport Florida Authority

  6  Board of Supervisors or the chairperson's designee.

  7         5.4.  The chairperson of the Florida Custom Brokers and

  8  Forwarders Association or the chairperson's designee.

  9         6.5.  A person having extensive experience in foreign

10  language instruction or international education.

11         7.6.  The chairperson of the International Law Section

12  of The Florida Bar or the chairperson's designee.

13         8.7.  The chairperson of the Florida International

14  Banking Association or the chairperson's designee.

15         9.8.  A representative of a company in this state that

16  is actively engaged in the manufacture of products in this

17  state for sale in foreign markets.

18         10.9.  A member of the Florida Citrus Commission

19  experienced in the exportation of citrus products who owns,

20  operates, or is employed by a major company in this state that

21  is actively engaged in the exportation of citrus products from

22  this state to international markets.

23         11.10.  A representative of a major multinational

24  company with offices in this state.

25         12.11.  The chairperson of the Latin Chamber of

26  Commerce of the United States or the chairperson's designee.

27         Section 18.  Subsection (2) of section 288.9415,

28  Florida Statutes, is amended to read:

29         288.9415  International Trade Grants.--

30         (2)  A county, municipality, economic development

31  council, the Spaceport Florida Authority, or a not-for-profit

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  1  association of businesses organized to assist in the promotion

  2  of international trade may apply for a grant of state funds

  3  for the promotion of international trade.

  4         Section 19.  Paragraph (a) of subsection (4) and

  5  subsection (9) of section 288.975, Florida Statutes, 1998

  6  Supplement, are amended to read:

  7         288.975  Military base reuse plans.--

  8         (4)(a)  Military base reuse plans shall contain the

  9  following elements: future land use; intergovernmental

10  coordination; transportation, which shall include roads,

11  public transportation, and ports, aviation, space

12  transportation, and related facilities; capital improvements;

13  coastal management, where applicable; recreation and open

14  space; housing; conservation; and general infrastructure,

15  which shall include potable water, sanitary sewer, solid

16  waste, aquifer recharge, and stormwater management. Each

17  element of the plan shall contain standards to assure

18  compatibility with and minimize impacts on the surrounding

19  community. Each element shall comply with the nonprocedural

20  requirements for such related elements contained in part II of

21  chapter 163 and rules adopted thereunder. The plan shall

22  address each noncontiguous portion of a base specifically.

23         (9)  If a host local government elects to use the

24  optional provisions of this act, it shall, no later than 12

25  months after notifying the agencies of its intent pursuant to

26  subsection (3) either:

27         (a)  Send a copy of the proposed military base reuse

28  plan for review to any affected local governments; the

29  Department of Environmental Protection; the Office of Tourism,

30  Trade, and Economic Development; the Department of Community

31  Affairs; the Department of Transportation; the Department of

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  1  Health; the Department of Children and Family Services; the

  2  Department of Agriculture and Consumer Services; the

  3  Department of State; the Florida Game and Fresh Water Fish and

  4  Wildlife Conservation Commission; the Spaceport Florida

  5  Authority; and any applicable water management districts and

  6  regional planning councils, or

  7         (b)  Petition the secretary of the Department of

  8  Community Affairs for an extension of the deadline for

  9  submitting a proposed reuse plan. Such an extension request

10  must be justified by changes or delays in the closure process

11  by the federal Department of Defense or for reasons otherwise

12  deemed to promote the orderly and beneficial planning of the

13  subject military base reuse. The secretary of the Department

14  of Community Affairs may grant extensions to the required

15  submission date of the reuse plan.

16         Section 20.  Section 288.976, Florida Statutes, is

17  amended to read:

18         288.976  Military base closure and reuse.--State

19  agencies and departments and the Spaceport Florida Authority

20  shall, consistent with their statutory authorities and

21  responsibility:

22         (1)  Consult with the appropriate federal agencies,

23  local governments, and federally recognized community base

24  reuse commissions as early as possible to coordinate

25  information gathering, issue identification, impact

26  assessment, potential land use options, citizen participation,

27  review timelines, and all other aspects of base closure and

28  reuse approvals. Such agencies shall invite federal and local

29  government representatives to attend any agency preapplication

30  conferences related to military base closure or reuse.

31

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  1         (2)  Make every effort to avoid duplicate reviews of

  2  impacts and, when possible and appropriate, use information

  3  analyses, and recommendations generated by the federal

  4  environmental impact statement process and the community base

  5  reuse plan process in state planning and permitting reviews.

  6         (3)  Be authorized to enter into memorandums of

  7  agreement with federal agencies in order to facilitate the

  8  coordination of reviews.

  9         (4)  Designate a person to serve as the agency

10  coordinator for military base closure and reuse matters and

11  notify the Governor in writing of the designation. The

12  Governor shall notify the Office of the Secretary of Defense,

13  the appropriate community base reuse commission chair, and the

14  commanding officer of the affected installation of the

15  appointment.

16         Section 21.  Section 288.977, Florida Statutes, is

17  amended to read:

18         288.977  Military base disposition.--State agencies or

19  departments, including the Spaceport Florida Authority, having

20  an interest in acquiring or otherwise utilizing property on

21  closed or realigned military bases may apply to acquire or use

22  such property either by utilizing the standard state and local

23  government screening process established in Pub. L. No.

24  101-510, s. 203, or by applying to a federal agency to use the

25  property as a public benefit conveyance. The agency or

26  department seeking to acquire or use property declared as

27  surplus to the Federal Government by the United States

28  Department of Defense shall provide to the Governor and the

29  appropriate local government or federally recognized community

30  base reuse commission, at the time of application to the

31  Federal Government, a detailed description of the location and

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  1  of the property as well as the agency's proposed or

  2  anticipated use of the property.

  3         Section 22.  Paragraphs (c) and (d) of subsection (2)

  4  and paragraph (a) of subsection (4) of section 288.980,

  5  Florida Statutes, 1998 Supplement, are amended to read:

  6         288.980  Military base retention; legislative intent;

  7  grants program.--

  8         (2)

  9         (c)  The amount of any grant provided to an applicant

10  may not exceed $250,000. The Office of Tourism, Trade, and

11  Economic Development shall require that an applicant:

12         1.  Represent a local government with a military

13  installation or military installations that could be adversely

14  affected by federal base realignment or closure. The Spaceport

15  Florida Authority may be the applicant if the military

16  installation or military installations are within spaceport

17  territory designated in s. 331.304.

18         2.  Agree to match at least 50 percent of any grant

19  awarded.

20         3.  Prepare a coordinated program or plan of action

21  delineating how the eligible project will be administered and

22  accomplished.

23         4.  Provide documentation describing the potential for

24  realignment or closure of a military installation located in

25  the applicant's community and the adverse impacts such

26  realignment or closure will have on the applicant's community.

27         (d)  In making grant awards the office shall consider,

28  at a minimum, the following factors:

29         1.  The relative value of the particular military

30  installation in terms of its importance to the local and state

31

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  1  economy relative to other military installations vulnerable to

  2  closure.

  3         2.  The potential job displacement within the local

  4  community should the military installation be closed.

  5         3.  The potential adverse impact on industries and

  6  technologies which service the military installation.

  7         4.  The potential positive state and local economic

  8  impacts of reuse activities.

  9         (4)(a)  The Defense-Related Business Adjustment Program

10  is hereby created.  The Director of the Office of Tourism,

11  Trade, and Economic Development shall coordinate the

12  development of the Defense-Related Business Adjustment

13  Program.  Funds shall be available to assist defense-related

14  companies in the creation of increased commercial technology

15  development through investments in technology.  Such

16  technology must have a direct impact on critical state needs

17  for the purpose of generating investment-grade technologies

18  and encouraging the partnership of the private sector and

19  government defense-related business adjustment.  The following

20  areas shall receive precedence in consideration for funding

21  commercial technology development:  law enforcement or

22  corrections, aerospace, environmental protection,

23  transportation, education, and health care.  Travel and costs

24  incidental thereto, and staff salaries, are not considered an

25  "activity" for which grant funds may be awarded.

26         Section 23.  Subsections (1) and (18) of section

27  331.305, Florida Statutes, is amended to read:

28         331.305  Powers of the authority.--The authority shall

29  have the power to:

30         (1)  Exercise all powers granted to corporations under

31  the Florida Business General Corporation Act, chapter 607.

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  1         (18)  Establish a personnel management system for

  2  hiring employees and setting employee benefit packages.  The

  3  personnel of the authority are shall not be considered to be

  4  within the state employment system, but are eligible to

  5  participate in state employee education and training

  6  opportunities established under s. 110.1099.

  7         Section 24.  Sections 331.370, 331.371, 331.372,

  8  331.373, 331.374, 331.375, 331.377, 331.378, 331.379, 331.380,

  9  and 331.381, Florida Statutes, are created to read:

10         331.370  Short title.--Sections 331.770-331.779 may be

11  cited as the "Florida Commercial Space Financing Corporation

12  Act."

13         331.371  Legislative findings and intent.--The

14  Legislature finds that the expansion of state and federal

15  support for the aerospace industry in Florida is critical to

16  the continued development of a viable commercial space

17  industry and the technical and scientific job base for its

18  residents. This development of commercial opportunities in

19  Florida is slowed by the lack of traditional business

20  financing tools such as securitization for industrial

21  development. Florida's launch industry is also being

22  challenged by the provision of such industry assistance by

23  other countries. Florida's aerospace industry could be

24  assisted by a corporation established to work with the U.S.

25  Export-Import Bank, Small Business Administration, NASA, and

26  other federal, state, and private sources to provide

27  information, technical assistance, and financial support. It

28  is the intention of the Legislature to retain and expand job

29  opportunities for Florida residents through this mechanism.

30         331.372  Definitions.--For purposes of ss.

31  331.371-331.379, the term:

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  1         (1)  "Account" means the Florida Commercial Space

  2  Financing Bank and investment accounts.

  3         (2)  "Authority" means the Spaceport Florida Authority

  4  created by s. 331.302.

  5         (3)  "Board" means the governing body of the

  6  corporation, which includes the executive board and the policy

  7  board.

  8         (4)  "Corporation" means the Florida Commercial Space

  9  Financing Corporation as created in s. 331.373.

10         (5)  "Domiciled in this state" means registered to do

11  business in Florida.

12         (6)  "Financing agreement" has the same meaning as

13  ascribed in s. 331.03(10).

14         (7)  "Financial institution" has the same meaning as

15  ascribed in s. 655.005(1)(h).

16         (8)  "Member" means an individual appointed to be a

17  board director.

18         (9)  "President" means the chief executive officer of

19  the Florida Commercial Space Financing Corporation.

20         (10)  "Sponsoring organization" means the named entity

21  that appoints a person to represent them on the board as a

22  board director.

23         331.373  Florida Commercial Space Financing

24  Corporation.--There is created the Florida Commercial Space

25  Financing Corporation as a corporation not for profit. The

26  corporation has all the powers, rights, privileges, and

27  authority as provided under chapter 617 and this section.

28  This corporation is organized on a non-stock basis. The

29  purpose of the corporation is to expand employment and income

30  opportunities for residents of this state by providing

31  businesses domiciled in this state with information, technical

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  1  assistance, and financial assistance to support space-related

  2  transactions in order to increase the development within the

  3  state of commercial aerospace products, activities, services,

  4  and facilities. The corporation has the power to:

  5         (1)  Coordinate the efforts of the corporation with

  6  programs and goals of the United States Air Force, National

  7  Aeronautics and Space Agency, Export-Import Bank, the

  8  International Trade Administration of the United States

  9  Department of Commerce, the Foreign Credit Insurance

10  Association, Enterprise Florida, Inc., and its boards, and

11  other private and public programs and organizations, domestic

12  and foreign.

13         (2)  Establish a network of contacts among those

14  domestic and foreign public and private organizations which

15  provide information, technical assistance, and financial

16  support to the aerospace industry.

17         (3)  Assemble, publish, and disseminate information on

18  financing opportunities, techniques of financing aerospace

19  projects, programs and activities; sources of public and

20  private aerospace financing assistance; and sources of

21  space-related financing.

22         (4)  Organize, host, and participate in seminars and

23  other forums designed to disseminate information and technical

24  assistance on space-related financing.

25         (5)(a)  Insure, coinsure, lend, and guarantee loans,

26  and to originate for sale direct space-related loans, pursuant

27  to criteria, bylaws, policies, and procedures adopted by the

28  board.

29         (b)  Capitalize, underwrite, and securitize funding for

30  aerospace infrastructure, satellites, launch vehicles, and any

31  service that supports aerospace launches.

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  1         (c)  Construct, lease, or sell aerospace

  2  infrastructure, satellites, launch vehicles, and any other

  3  related activities and services.

  4         (d)  Acquire property, including real, personal,

  5  tangible, intangible, or mixed under such conditions that the

  6  board may deem necessary or desirable, and sell or otherwise

  7  dispose of the property.

  8         (6)  Enter into contracts or other instruments

  9  necessary or convenient to the exercise of its powers,

10  including financing agreements.

11         331.374  Powers and limitations.--

12         (1)  The corporation may charge fees to help defray the

13  operating expenses of its programs. The amount of fees shall

14  be determined by the board.

15         (2)  The total of loans, guarantees, direct loan

16  originations for sale, and insured export transactions

17  outstanding may not be more than five times the balance of the

18  account. The board may elect to require a higher reserve.

19         (3)(a)  The board shall adopt rules on the terms and

20  limits for loans, guarantees, and direct loan originations,

21  but a loan guarantee or a direct loan origination may not

22  exceed 90 percent of the transaction contract.

23         (b)  In providing assistance, the board shall create a

24  fiscal strategy for the state which will guide and facilitate

25  the successful expansion of space-related jobs.

26         (c)  The board shall explore the possibility of

27  organizing financial institutions and international bank

28  syndicates for the purpose of offering nonrecourse financing

29  to the Florida aerospace industry.

30

31

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  1         (4)  The board shall exercise all powers granted to

  2  nonprofit corporations under the Not-for-Profit Corporation

  3  Act, chapter 617.

  4         (5)  The board shall manage all funds in its possession

  5  and invest in permissible securities.

  6         331.375  Board of directors; powers and duties.--

  7         (1)  There is created a board of directors consisting

  8  of up to 17 members with one member appointed by each of the

  9  following:  the Board of Supervisors of the Spaceport Florida

10  Authority; the Board of the Florida Export Finance

11  Corporation; the Board of the Brevard County Economic

12  Development Corporation; the Secretary of the Florida

13  Department of Transportation; the Commissioner of the Florida

14  Department of Insurance; the Florida office of the U.S.

15  Department of Commerce; the Florida office of the U.S.

16  Department of Transportation; and the Commissioner of the

17  Florida Department of Banking and Finance.

18         (2)(a)  The Governor shall appoint business members as

19  follows:  up to three members from national banks and one

20  member each from a state bank, the investment banking

21  industry, the aerospace industry, preferably a financial

22  officer, an attorney at law in private practice, the public

23  accounting industry, and the defense industry. The Board shall

24  have two ex-officio nonvoting members. One shall be a state

25  representative selected by the Speaker of the House of

26  Representatives and one a state senator selected by the

27  President of the Senate, both of whom shall serve for 2-year

28  terms.

29         (b)  A person appointed to the board may not be

30  employed full time by any entity that applies for financial

31  support, except the industry representative.

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  1         (c)  The federal employee members of this board will

  2  not vote on any financial matter, but may vote on all

  3  corporate policies and procedures.

  4         (3)  All board members must be residents of the state.

  5         (4)  Each voting member shall serve for a 3-year term,

  6  with the term commencing on the day of appointment and

  7  continuing until June 30th, 3 years later. Each member shall

  8  serve until a written notice is received by the corporation

  9  from their sponsoring organization that a new member is

10  appointed.  Appointment as a member does not preclude any

11  member from holding any other private or public position.

12  Initial appointments shall be made no later than 60 days after

13  July 1, 1999.

14         (5)  The board shall hold its initial meeting no later

15  than 30 days after the members have been appointed.

16         (6)  At its first meeting, the board shall appoint a

17  president of the corporation from qualified candidates who

18  have been screened and interviewed by the Spaceport Florida

19  Authority.

20         (7)  Board members shall serve without compensation but

21  may be reimbursed for all necessary expenses in the

22  performance of their duties, including attending board

23  meetings and conducting board business as provided in s.

24  112.061.

25         (8)  The board shall:

26         (a)  Before the expenditure of funds from the Florida

27  Commercial Space Financing Corporation Trust Fund, adopt

28  bylaws, rules, and policies which are necessary to carry out

29  the responsibilities under ss. 331.370-331.379, particularly

30  with respect to the implementation of the corporation's

31  programs to insure, coinsure, lend, provide loan guarantees,

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  1  and make direct, guaranteed, or collateralized loans by the

  2  corporation to support space-related transactions.

  3         (b)  Hold regularly scheduled meetings, at least

  4  quarterly, in order to carry out the objectives and

  5  responsibilities of the board.

  6         (c)  By December 31 of each year, the corporation shall

  7  submit to the Governor, the President of the Senate, the

  8  Speaker of the House of Representatives, the Senate Minority

  9  Leader, and the House Minority Leader a complete and detailed

10  report setting forth:

11         1.  An evaluation of its activities and recommendations

12  for change.

13         2.  The corporation's impact on the participation of

14  private banks and other private organizations and individuals

15  in the corporation's financing programs, and other economic

16  and social benefits to businesses in this state.

17         3.  Its assets and liabilities at the end of its most

18  recent fiscal year.

19         (d)  Adopt policies, including criteria, establishing

20  which space-related transactions are eligible for insurance,

21  coinsurance, loan guarantees, and direct, guaranteed, or

22  collateralized loans which may be extended by the corporation.

23  Pursuant to this subsection, the board shall adopt rules to

24  include the following criteria:

25         1.  Any individual signing any corporation loan

26  application and loan or guarantee agreement shall have an

27  equity interest in the business applying for financial

28  assistance.

29         2.  Applicants will be domiciled in Florida and will be

30  contractually obligated to use Florida launch facilities to

31  the maximum extent possible.

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  1         (e)  Adopt requirements to ensure the full repayment of

  2  loans and loan guarantees, plus accrued interest,

  3  full-recourse claims, and indemnities on direct loan

  4  originations sold by the corporation, and the solvency of any

  5  insurance and coinsurance program extended under ss.

  6  331.370-331.379.

  7         (f)  Approve any extension of insurance, coinsurance,

  8  loans, loan guarantees, or direct loan originations for sale,

  9  under ss. 331.370-331.379.

10         (g)  Consult with Enterprise Florida, Inc., and its

11  boards, or any state or federal agency, to ensure that the

12  respective loan guarantee or working capital loan origination

13  programs are not duplicative and that each program makes full

14  use of, to the extent practicable, the resources of the other.

15         (h)  Work to secure a delegated line of authority from

16  the United States Export-Import Bank or other appropriate

17  federal or state agency or private sector entity in order to

18  take advantage of this possible funding or guarantee source.

19         (i)  Develop a streamlined application and review

20  process.

21         331.377  President.--

22         (1)  The board shall appoint a president. The president

23  must be knowledgeable about the aerospace industry and its

24  financing programs.

25         (2)  The president shall serve at the pleasure of the

26  board and shall receive a salary and benefits as are fixed by

27  the board.

28         (3)  The president shall administer the programs of the

29  corporation and perform such duties as are delegated by the

30  board.

31         (4)  The president may, upon approval of the board:

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  1         (a)  Contract for services.

  2         (b)  Hold public hearings.

  3         (c)  Call upon and reimburse for services any state

  4  agency or department for assistance in carrying out the

  5  objectives of ss. 331.370-331.379.

  6         (d)  Participate with government or private industry in

  7  programs for technical assistance, loans, technology transfer,

  8  or any other programs related to ss. 331.370-331.379.

  9         (e)  Undertake or commission studies on methods to

10  increase financial resources to expand the financial

11  assistance to aerospace related industries in this state.

12         (f)  Hire staff and provide export finance training for

13  them and other individuals involved in finance assistance,

14  including such training sessions as may be provided by the

15  United States Export-Import Bank and other organizations.

16         (g)  Exercise any other powers as may be necessary to

17  carry out the purposes of this part.

18         (5)  The president shall provide staff to the board as

19  requested.

20         (6)  The president shall submit an annual budget to be

21  approved by the board.

22         331.378  Audits.--

23         (1)  By September 1, 2000, the corporation, in

24  cooperation with the Auditor General, shall develop a research

25  design, including goals and measurable objectives for the

26  corporation, which will provide the Legislature with a

27  quantitative evaluation of the corporation. The corporation

28  shall utilize the monitoring mechanisms and reports developed

29  in the designs and provide these reports to the Governor, the

30  President of the Senate, the Speaker of the House of

31  Representatives, and the Auditor General.

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  1         (2)  Before the 2001 Regular Session of the

  2  Legislature, the Auditor General shall perform a review and

  3  evaluation of the corporation using the research design

  4  promulgated pursuant to subsection (1). The report shall

  5  critique the corporation. A report of the findings and

  6  recommendations of the Auditor General shall be submitted to

  7  the President of the Senate and the Speaker of the House of

  8  Representatives before the 2001 Regular Session.

  9         (3)  The Division of Banking of the Department of

10  Banking and Finance shall review the corporation's activities

11  once every 24 months to determine compliance with ss.

12  331.370-331.379 and other related laws and rules and to

13  evaluate the corporation's operations. The division shall

14  prepare a report based on its review and evaluation with

15  recommendations for any corrective action. The president shall

16  submit to the division regular reports on the corporation's

17  activities. The content and frequency of such reports shall be

18  determined by the division. The division may charge a fee for

19  conducting the review and evaluation and preparing the related

20  report, which fee may not be in excess of the examination fee

21  paid by financial institutions chartered or licensed under the

22  financial institutions code of this state.

23         331.779  Revenues.--

24         (1)  The corporation may enter into an investment

25  agreement with the State Board of Administration concerning

26  the investment of the earnings accrued and collected upon the

27  investment of the balance of funds maintained in the Working

28  Capital Trust Fund and the Budget Stabilization Fund. The

29  investment must be limited as follows:

30         (a)  Not more than $100 million of the investment

31  earnings earned on the investment of the minimum balance of

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  1  the Working Capital Trust Fund in a fiscal year may be at risk

  2  at any time on loan guarantees or as loan loss reserves.

  3         (b)  The investment earnings may not be used to

  4  guarantee any loan guaranty or loan loss reserve agreement for

  5  a period longer than 5 years.

  6         (2)  The Spaceport Florida Authority may pledge

  7  existing revenues on deposit or future revenues projected to

  8  be available for deposit in the Spaceport Industry and

  9  Research Facility Development Fund in order to guarantee, in

10  whole or in part, the payment of principal and interest on a

11  loan made by the corporation.

12         331.380 Florida Space Industry and Research Facility

13  Development Program.--

14         (1)  There is created the Florida Space Industry and

15  Research Facility Development Program within the Spaceport

16  Florida Authority to finance space industry research,

17  manufacturing, and other industrial support facilities

18  projects and programs that will improve the statewide

19  development of space-related economic and academic

20  opportunities.

21         (2)  A minimum of $5 million per year will be made

22  available from the State General Revenue Fund to fund the

23  Florida Space Industry and Research Facility Development

24  Program.

25         (3)  General Revenue funding shall be made available

26  based on a reallocation of sales taxes and admissions taxes

27  collected at the Kennedy Space Center Visitor Complex.

28         (4)  Funding will be distributed quarterly by the

29  Department of Revenue to the Spaceport Florida Authority.  The

30  Spaceport Florida Authority will deposit all of such funds in

31

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  1  the Florida Spaceport Commercial Financing Corporation Trust

  2  Fund created in s. 331.376, if created by law.

  3         (5)  Program funds shall be used to fund approved

  4  projects as defined in section 331.303(16) which have been

  5  recommended by the Spaceport Management Council created in s.

  6  331.381, and approved by the Spaceport Florida Authority Board

  7  of Supervisors.  The Office of Tourism, Trade, and Economic

  8  Development shall review and certify funding proposals for

  9  consistency with this section.

10         (6)  Any project or project user that receives funding

11  under the program shall institute procedures to ensure that

12  jobs created as a result of the state funding are subject to

13  equal opportunity hiring practices in the manner provided in

14  s. 110.112.

15         (7)  The Office of Tourism, Trade, and Economic

16  Development shall subject any project that receives funds

17  pursuant to this section to a final audit. The office may

18  adopt rules and perform such other acts as are necessary or

19  convenient to ensure that the final audits are conducted and

20  that any deficiency or questioned costs noted by the audit are

21  resolved.

22         331.381 Spaceport Management Council.--

23         (1)  The Spaceport Management Council is created within

24  the Spaceport Florida Authority to provide coordination and

25  recommendations on projects and activities that will increase

26  the operability and capabilities of Florida's space launch

27  facilities, increase statewide space-related industry and

28  opportunities, or promote space education and research within

29  the state. The council shall work to develop integrated

30  facility and programmatic development plans to address

31  commercial, state, and federal requirements; and to identify

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  1  appropriate private, state, and federal resources to implement

  2  these plans.

  3         (2)  The council shall provide recommendations for:

  4         (a)  Projects to be funded under the Florida Space

  5  Industry and Research Facility Development Program created in

  6  s. 331.380. The council shall provide requirements and other

  7  information to be used in the development of a 5-year

  8  Spaceport Economic Development Plan to define the goals and

  9  objectives of the council concerning the development of space

10  manufacturing, research, and development and educational

11  facilities consistent with the economic development space

12  sector plan.

13         (b)  The development of the spaceport master plan under

14  s. 331.360.

15         (c)  The projects and levels of commercial financing

16  required from the Spaceport Commercial Financing Corporation

17  created in s. 331.373.

18         (d)  Development and expansion of space-related

19  education and research programs within Florida, including

20  recommendations to be provided to the State University System,

21  the Division of Community Colleges, and the Department of

22  Education.

23         (e)  The regulation of spaceports and federal and state

24  policy.

25         (f)  Florida's approach to the Federal Government on

26  request for funding of space development.

27         (3)  The council shall consist of an executive board,

28  which will consist of representatives of governmental

29  organizations with responsibilities for developing or

30  operating space transportation facilities; and a Space

31

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  1  Industry Committee, which will consist of representatives of

  2  Florida's space industry.

  3         (4)  The following individuals will serve on the

  4  executive board:

  5         (a)  The Executive Director of the Spaceport Florida

  6  Authority or his or her designee;

  7         (b)  The Director of the John F. Kennedy Space Center

  8  or his or her designee;

  9         (c)  The Commander of the United States Air Force 45th

10  Space Wing or his or her designee;

11         (d)  The Commander of the Naval Ordinance Test Unit or

12  his or her designee;

13         (e)  The secretary of the Department of Transportation

14  or his or her designee;

15         (f)  The president of Enterprise Florida, Inc., or his

16  or her designee as an ex-officio nonvoting member;

17         (g)  The director of the Office of Tourism, Trade, and

18  Economic Development or his or her designee as an ex-officio

19  nonvoting member;

20         (h)  The secretary of the Department of Management

21  Services or his or her designee as an ex-officio nonvoting

22  member;

23         (i)  The Chancellor of the State University System or

24  his or her designee as an ex-officio nonvoting member; and

25         (j)  The state senator and the state representative

26  appointed to the Spaceport Florida Authority Board of

27  Supervisors pursuant to s. 331.308 (1) as ex-officio nonvoting

28  members.

29         (5)  The Space Industry Committee will consist of 15

30  members representing companies or divisions of companies

31  predominantly involved in providing space-related goods and

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  1  services who are significant employers within the state.  A

  2  public application process to solicit and review potential

  3  nominees will be instituted.  The Executive Director of the

  4  Spaceport Florida Authority will nominate 15 members of the

  5  committee from the list of qualified applicants, who are then

  6  subject to confirmation by the authority's board of

  7  supervisors.

  8         (6)  All council members must be residents of the

  9  state.

10         (7)  Each member shall be appointed to serve for a

11  3-year term, with the term commencing on the day of

12  appointment and continuing until June 30th, 3 years later.

13  Each member shall serve until a written notice is received by

14  the corporation from the sponsoring organization that

15  appointed the new member.  Appointment as a member does not

16  preclude any member from holding any other private or public

17  position.  Initial appointments must be made by September 1,

18  1999.

19         (8)  The executive board shall hold its initial meeting

20  no later than 30 days after the members have been appointed.

21  The Space Industry Committee shall hold its initial meeting no

22  later than 60 days after the members have been appointed.

23         (9)  Board members shall serve without compensation but

24  may be reimbursed for all necessary expenses in the

25  performance of their duties, including attending board

26  meetings and conducting board business as provided in s.

27  112.061.

28         (10)  The council shall adopt bylaws governing the

29  manner in which the business of the council will be conducted.

30  The bylaws shall specify the procedure by which the

31  chairperson of the council is elected.

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  1         (11)  The council shall provide infrastructure and

  2  program requirements and develop other information to be used

  3  in the 5-year spaceport master plan in s. 331.360.  The

  4  council will define goals and objectives concerning the

  5  development of spaceport facilities and an intermodal

  6  transportation system consistent with the goals of the Florida

  7  Transportation Plan developed pursuant to s. 339.155.

  8         (12)  The council shall provide requirements and other

  9  information to be used in the development of a 5-year

10  spaceport economic development plan, defining the goals and

11  objectives of the council concerning the development of space

12  manufacturing, research and development and educational

13  facilities consistent with the economic development space

14  sector plan.

15         (13)  The council shall update the 5-year spaceport

16  economic development plan annually and shall submit the plan

17  no later than February 1 of each year to the President of the

18  Senate; the Speaker of the House of Representatives; the

19  Office of Tourism, Trade, and Economic Development; the

20  Department of Transportation; and the Department of Community

21  Affairs.

22         (14)  The council shall develop programs, based on an

23  examination of existing programs in Florida and other states,

24  for the training of minorities and secondary school students

25  in job skills associated with employment opportunities in the

26  aerospace industry, and report on progress and recommendations

27  for further action to the President of the Senate and the

28  Speaker of the House of Representatives annually, beginning no

29  later than February 1, 2000.

30         (15)  The council shall adopt rules for evaluating

31  projects which may be funded under s. 331.380. The rules shall

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  1  provide criteria for evaluating the economic benefit of the

  2  project, measured by the potential for the proposed project to

  3  increase manufacturing activity, international commerce,

  4  spaceport revenues, and the number of jobs.

  5         (16)  The council shall review and recommend or not

  6  recommend each project eligible to be funded pursuant to the

  7  Florida Space Industry and Research Development Program. The

  8  council shall annually submit to the Secretary of

  9  Transportation; the director of the Office of Tourism, Trade,

10  and Economic Development; and the Secretary of Community

11  Affairs a list of projects that have been approved by the

12  council. The list must specify the recommended funding level

13  for each project; and, if staged implementation of the project

14  is appropriate, the funding requirements for each stage must

15  be specified.

16         (17)  The Department of Community Affairs shall review

17  the list of projects approved by the council to determine

18  consistency with approved local government comprehensive plans

19  of the units of local government in which the spaceport is

20  located and consistency with the spaceport master plan. The

21  Department of Community Affairs shall identify and notify the

22  council of those projects that are not consistent, to the

23  maximum extent feasible, with such comprehensive plans and

24  spaceport master plans.

25         (18)  The Office of Tourism, Trade, and Economic

26  Development shall review the list of projects approved by the

27  council to evaluate the economic benefit of the project.  The

28  Office of Tourism, Trade, and Economic Development shall

29  identify those projects that it finds do not offer an economic

30  benefit to the state, and shall notify the council of its

31  findings.

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  1         (19)  The council shall review the findings of the

  2  Department of Community Affairs; the Office of Tourism, Trade,

  3  and Economic Development; and the Department of

  4  Transportation. Projects found to be inconsistent pursuant to

  5  subsections (11) and (17) and projects which have been

  6  determined not to offer an economic benefit to the state

  7  pursuant to subsection (18) shall not be included in the list

  8  of projects to be funded.

  9         (20)  The council shall meet at the call of its

10  chairperson, at the request of a majority of its membership,

11  or at such times as may be prescribed in its bylaws. However,

12  the council must meet at least semiannually. A majority of

13  voting members of the council constitutes a quorum for the

14  purpose of transacting the business of the council. A vote of

15  the majority of the voting members present is sufficient for

16  any action of the council, unless the bylaws of the council

17  require a greater vote for a particular action.

18         (21)  Members of the council shall serve without

19  compensation but are entitled to receive reimbursement for per

20  diem and travel expenses as provided in s. 112.061. The

21  council may elect to provide an administrative staff to

22  provide services to the council on matters relating to the

23  Florida Space Industry and Research Facility Development

24  Program and the council. The Spaceport Florida Authority shall

25  pay the cost for such administrative services.

26         Section 25.  The sum of $5 million is appropriated from

27  the General Revenue Fund to the Florida Commercial Space

28  Financing Corporation Trust Fund for the purpose of

29  implementing sections 331.370-331.379, Florida Statutes,

30  during the 1999-2000 fiscal year. The sum of $500,000 is

31  appropriated from the General Revenue Fund to the Florida

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  1  Commercial Space Financing Corporation for corporate

  2  operations for the 1999-2000 fiscal year.

  3         Section 26.  The sum of $5 million is appropriated from

  4  the General Revenue Fund to the Spaceport Florida Authority to

  5  fund the Florida Space Industry and Research Facility

  6  Development Program for the 1999-2000 fiscal year.

  7         Section 27.  This act shall take effect July 1, 1999.

  8

  9            *****************************************

10                          SENATE SUMMARY

11    Provides for the promotion and development of the
      commercial space industry through the creation of various
12    entities and programs to work in conjunction with the
      Spaceport Florida Authority, the Office of Tourism,
13    Trade, and Economic Development, Enterprise Florida,
      Inc., and other state agencies. Provides for tax
14    exemptions and funding alternatives. Provides for
      appropriations.
15

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