Senate Bill 2540e1

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  1                      A bill to be entitled

  2         An act relating to the commercial space

  3         industry; amending s. 330.30, F.S.; exempting

  4         certain spaceports from a provision of law

  5         relating to the approval of airport sites and

  6         the licensing of airports; amending s. 331.303,

  7         F.S.; revising definitions with respect to the

  8         Spaceport Florida Authority Act; amending s.

  9         331.304, F.S.; revising the boundaries of

10         spaceport territory; amending s. 331.360, F.S.;

11         providing for the development of a spaceport

12         master plan; creating s. 332.008, F.S.;

13         providing limitation on the application of

14         chapter 332, F.S.; amending s. 334.03, F.S.;

15         redefining the term "transportation facility";

16         amending s. 334.30, F.S.; authorizing a fixed

17         guideway transportation system operating within

18         the Department of Transportation's right-of-way

19         to operate at any safe speed; amending s.

20         339.155, F.S.; revising a provision of law

21         governing transportation planning to include

22         reference to spaceport master plans; amending

23         s. 339.175, F.S.; including reference to

24         spaceports and aerospace development with

25         respect to metropolitan planning organizations;

26         creating the Commission on the Future of

27         Aeronautics and Space in Florida; providing for

28         qualifications and appointment of members;

29         directing the commission to study and make

30         recommendations regarding specified areas

31         relating to aeronautics and aerospace in the


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  1         state; requiring reports; amending s. 196.012,

  2         F.S.; redefining the term "governmental

  3         purpose"; amending ss. 212.031, 212.08, F.S.;

  4         providing for exemptions from the tax on sales,

  5         use, and other transactions; revising the

  6         application of the sales tax exemption for

  7         machinery and equipment used to increase

  8         productive output with respect to such

  9         machinery and equipment used in connection with

10         spaceport activities; amending s. 288.063,

11         F.S.; authorizing the Spaceport Florida

12         Authority to enter into contracts for

13         transportation projects; amending s. 288.075,

14         F.S.; adding the Office of Tourism, Trade, and

15         Economic Development and the Spaceport Florida

16         Authority to a list of economic development

17         agencies whose records are confidential;

18         amending s. 288.35, F.S.; redefining the term

19         "government agency"; amending s. 288.9415,

20         F.S.; authorizing the Spaceport Florida

21         Authority to apply for international trade

22         grants; amending s. 331.305, F.S.; authorizing

23         Spaceport Florida Authority personnel to

24         participate in specified education and

25         training; amending s. 331.309, F.S.; providing

26         that funds of the authority may be deposited

27         with the Florida Commercial Space Financing

28         Corporation; creating s. 331.3475, F.S.;

29         providing for the Spaceport Facility Loan

30         Guarantee Program; creating part III of ch.

31         331, F.S., the Florida Commercial Space


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  1         Financing Corporation Act; providing findings

  2         and intent; providing definitions; creating the

  3         Florida Commercial Space Financing Corporation;

  4         specifying the functions the corporation is

  5         authorized to carry out; providing for a board

  6         of directors of the corporation and for

  7         qualifications and appointment of members;

  8         providing powers of the corporation and the

  9         board; providing for fees; providing for rules;

10         providing for insurance, coinsurance, loan

11         guarantees, and loans for eligible

12         space-related transactions; directing the board

13         to establish an account to receive specified

14         resources; providing for deposits in the

15         account and for allocation of the account's

16         resources; providing for appointment of a

17         president of the corporation; providing powers

18         and duties of the president; requiring an

19         annual report; providing for development of a

20         research design to evaluate the corporation;

21         providing for a review and evaluation of the

22         corporation by the Office of Program Policy

23         Analysis and Government Accountability;

24         providing for periodic reviews and reports by

25         the Division of Banking; authorizing the

26         Spaceport Florida Authority to pledge certain

27         revenues to guarantee corporation loans;

28         creating s. 331.365, F.S.; creating the Florida

29         Space Industry and Research Facility

30         Development Program within the Spaceport

31         Florida Authority; providing that sales tax


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  1         revenues collected at the Kennedy Space Center

  2         Visitor Complex and distributed to the

  3         authority shall be used to fund certain

  4         approved projects; providing duties of the

  5         Office of Tourism, Trade, and Economic

  6         Development; providing for audits; amending s.

  7         212.20, F.S.; providing for distribution of the

  8         state taxes collected pursuant to ch. 212,

  9         F.S., at the Kennedy Space Center Visitor

10         Complex to the Spaceport Florida Authority;

11         providing for a minimum annual distribution;

12         creating s. 331.367, F.S.; creating the

13         Spaceport Management Council within the

14         Spaceport Florida Authority; providing that the

15         council shall make recommendations regarding

16         specified areas; providing for an executive

17         board and the membership thereof; providing

18         duties of the council; providing duties with

19         respect to a spaceport master plan; providing

20         for development of a Spaceport Economic

21         Development Plan; providing that the council

22         shall recommend projects to be funded pursuant

23         to the Florida Space Industry and Research

24         Facility Development Program; creating the

25         Florida Space Research Institute; prescribing

26         the purposes of the institute; providing for

27         management and operation of the institute;

28         requiring a report; amending s. 196.1994, F.S.;

29         providing that cargo carriers are exempt from

30         ad valorem taxes; providing intent; providing

31         legislative findings and declarations with


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  1         respect to the global competition that is

  2         encountered by the state in attracting

  3         commercial space business facilities; creating

  4         the Florida Commercial Space Development

  5         Incentive Program within the Office of Tourism,

  6         Trade, and Economic Development; requiring

  7         Enterprise Florida, Inc., to evaluate and

  8         recommend high-impact commercial space

  9         facilities eligible for a payment of moneys;

10         providing eligibility criteria; requiring that

11         such payments be approved by the Governor,

12         following consultation with the President of

13         the Senate and the Speaker of the House of

14         Representatives; requiring initiation of a

15         budget amendment to obtain funds from the

16         Working Capital Fund; requiring reimbursement

17         to the trust fund; providing certain

18         requirements for the contract awarding moneys;

19         requiring Enterprise Florida, Inc., to validate

20         contractor performance; providing for a report

21         to the Governor, the President of the Senate,

22         and the Speaker of the House of

23         Representatives; providing an appropriation;

24         providing for severability; providing effective

25         dates.

26

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

28

29         Section 1.  Paragraph (d) of subsection (3) of section

30  330.30, Florida Statutes, 1998 Supplement, is amended to read:

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  1         330.30  Approval of airport sites and licensing of

  2  airports; fees.--

  3         (3)  EXEMPTIONS.--The provisions of this section do not

  4  apply to:

  5         (d)  An airport under the jurisdiction or control of a

  6  county or municipal aviation authority or a county or

  7  municipal port authority or the Spaceport Florida Authority;

  8  however, the department shall license any such airport if such

  9  authority does not elect to exercise its exemption under this

10  subsection.

11         Section 2.  Subsection (25) is added to section

12  331.303, Florida Statutes, to read:

13         331.303  Definitions.--

14         (25)  "Spaceport discretionary capacity improvement

15  projects" means capacity improvements that enhance space

16  transportation capacity at spaceports that have had one or

17  more orbital or suborbital flights during the previous

18  calendar year or have an agreement in writing for installation

19  of one or more regularly scheduled orbital or suborbital

20  flights upon the commitment of funds for stipulated spaceport

21  capital improvements.

22         Section 3.  Section 331.304, Florida Statutes, is

23  amended to read:

24         331.304  Spaceport territory.--The following property

25  shall constitute spaceport territory:

26         (1)  Certain real property located in Brevard County

27  that is included within the 1998 boundaries of Patrick Air

28  Force Base, Cape Canaveral Air Station, John F. Kennedy Space

29  Center. with the following boundaries:

30         (a)  Northern boundary--Latitude 28°32'30" North.

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  1         (b)  Eastern boundary--The mean high water line of the

  2  shore along the Atlantic Ocean.

  3         (c)  Western boundary--Cape Road (State Road 401).

  4         (d)  Southern boundary--Latitude 28°26' North.

  5         (2)  Certain real property located in Gulf County with

  6  the following boundaries:

  7         (a)  Northern boundary--Latitude 29°40'45" North from

  8  longitude 85°20' West in a westerly direction to the mean high

  9  water line of the Gulf of Mexico.

10         (b)  Eastern boundary--Longitude 85°20' West.

11         (c)  Western boundary--The mean high water line of the

12  shore along the Gulf of Mexico.

13         (d)  Southern boundary--The mean high water line of the

14  shore along the Gulf of Mexico.

15         (3)  Certain real property located in Santa Rosa,

16  Okaloosa, and Walton Counties which is included within the

17  1997 boundaries of Eglin Air Force Base.

18         Section 4.  Section 331.360, Florida Statutes, is

19  amended to read:

20         331.360  Joint project agreement or assistance.--

21         (1)  It shall be the duty, function, and responsibility

22  of the Department of Transportation to promote the further

23  development and improvement of aerospace transportation

24  facilities, to address intermodal requirements and impacts of

25  the launch ranges, spaceports, and other space transportation

26  facilities, to assist in the development of joint-use

27  facilities and technology that support aviation and aerospace

28  operations, and to facilitate and promote cooperative efforts

29  between federal and state government entities to improve space

30  transportation capacity and efficiency.  In carrying out this

31  duty and responsibility, the department may assist and advise,


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  1  cooperate with, and coordinate with federal, state, local, or

  2  private organizations and individuals.  The department may

  3  administratively house its space transportation

  4  responsibilities within an existing division or office.

  5         (2)  Notwithstanding any other provision of law, the

  6  Department of Transportation may enter into a joint project

  7  agreement with, or otherwise assist, the Spaceport Florida

  8  Authority as necessary to effectuate the provisions of this

  9  chapter and may allocate funds for such purposes in its 5-year

10  work program.  However, the department may not fund the

11  administrative or operational costs of the authority.

12         (3)  The authority shall develop a spaceport master

13  plan for expansion and modernization of space transportation

14  facilities within spaceport territories as defined in s.

15  331.303(22).  The plan shall contain recommended projects to

16  meet current and future commercial, national, and state space

17  transportation requirements.  The authority shall submit the

18  plan to any appropriate M.P.O. for review of intermodal

19  impacts.  The authority shall submit the spaceport master plan

20  to the Department of Transportation and such plan may be

21  included within the department's 5-year work program of

22  qualifying aerospace discretionary capacity improvement under

23  s. 331.360(4).  The plan shall identify appropriate funding

24  levels and include recommendations on appropriate sources of

25  revenue that may be developed to contribute to the State

26  Transportation Trust Fund.

27         (4)  Subject to the availability of appropriated funds,

28  the department may participate in the capital cost of eligible

29  spaceport discretionary capacity improvement projects.  The

30  annual legislative budget request shall be based on the

31


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  1  proposed funding requested for approved spaceport

  2  discretionary capacity improvement projects.

  3         Section 5.  Section 332.008, Florida Statutes, is

  4  created to read:

  5         332.008  Limitation on operation of chapter.--Nothing

  6  in this chapter shall be construed to authorize expenditure of

  7  aviation fuel tax revenues on space transportation projects.

  8  Nothing in this chapter shall be construed to limit the

  9  department's authority under s. 331.360.

10         Section 6.  Subsection (31) of section 334.03, Florida

11  Statutes, is amended to read:

12         334.03  Definitions.--When used in the Florida

13  Transportation Code, the term:

14         (31)  "Transportation facility" means any means for the

15  transportation of people or and property from place to place

16  which is constructed, operated, or maintained in whole or in

17  part from public funds. The term includes the property or

18  property rights, both real and personal, which have been or

19  may be established by public bodies for the transportation of

20  people or and property from place to place.

21         Section 7.  Subsection (6) is added to section 334.30,

22  Florida Statutes, to read:

23         334.30  Private transportation facilities.--The

24  Legislature hereby finds and declares that there is a public

25  need for rapid construction of safe and efficient

26  transportation facilities for the purpose of travel within the

27  state, and that it is in the public's interest to provide for

28  the construction of additional safe, convenient, and

29  economical transportation facilities.

30         (6)  Notwithstanding s. 341.327, a fixed-guideway

31  transportation system authorized by the department to be


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  1  wholly or partially within the department's right-of-way

  2  pursuant to a lease granted under s. 337.251 may operate at

  3  any safe speed.

  4         Section 8.  Paragraph (d) of subsection (2) of section

  5  339.155, Florida Statutes, is amended, present paragraphs (w)

  6  and (x) of that subsection are redesignated as paragraphs (x)

  7  and (y), respectively, and a new paragraph (w) is added to

  8  that subsection, to read:

  9         339.155  Transportation planning.--The department shall

10  develop and annually update a statewide transportation plan,

11  to be known as the Florida Transportation Plan.  The plan

12  shall be designed so as to be easily read and understood by

13  the general public.

14         (2)  DEVELOPMENT CRITERIA.--The Florida Transportation

15  Plan shall consider the needs of the entire state

16  transportation system, examine the use of all modes of

17  transportation to effectively and efficiently meet such needs,

18  and provide for the interconnection of all types of modes in a

19  comprehensive intermodal transportation system.  In developing

20  the Florida Transportation Plan, the department shall consider

21  the following:

22         (d)  International border crossings and access to

23  ports, airports, spaceports, intermodal transportation

24  facilities, major freight distribution routes, national parks,

25  recreation and scenic areas, monuments and historic sites, and

26  military installations.

27         (w)  The spaceport master plan approved by the

28  Spaceport Florida Authority.

29         Section 9.  Paragraph (a) of subsection (2), paragraph

30  (b) of subsection (5), paragraph (a) of subsection (6),

31  paragraphs (a) and (c) of subsection (7), and paragraph (a) of


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  1  subsection (9) of section 339.175, Florida Statutes, 1998

  2  Supplement, are amended to read:

  3         339.175  Metropolitan planning organization.--It is the

  4  intent of the Legislature to encourage and promote the

  5  development of transportation systems embracing various modes

  6  of transportation in a manner that will maximize the mobility

  7  of people and goods within and through urbanized areas of this

  8  state and minimize, to the maximum extent feasible, and

  9  together with applicable regulatory government agencies,

10  transportation-related fuel consumption and air pollution.  To

11  accomplish these objectives, metropolitan planning

12  organizations, referred to in this section as M.P.O.'s, shall

13  develop, in cooperation with the state, transportation plans

14  and programs for metropolitan areas. Such plans and programs

15  must provide for the development of transportation facilities

16  that will function as an intermodal transportation system for

17  the metropolitan area.  The process for developing such plans

18  and programs shall be continuing, cooperative, and

19  comprehensive, to the degree appropriate, based on the

20  complexity of the transportation problems.

21         (2)  VOTING MEMBERSHIP.--

22         (a)  The voting membership of an M.P.O. shall consist

23  of not fewer than 5 or more than 19 apportioned members, the

24  exact number to be determined on an equitable

25  geographic-population ratio basis by the Governor, based on an

26  agreement among the affected units of general-purpose local

27  government as required by federal rules and regulations. The

28  Governor, in accordance with 23 U.S.C. s. 134, as amended by

29  the Intermodal Surface Transportation Efficiency Act of 1991,

30  may also provide for M.P.O. members who represent

31  municipalities to alternate with representatives from other


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  1  municipalities within the designated urban area that do not

  2  have members on the M.P.O. County commission members shall

  3  compose not less than one-third of the M.P.O. membership,

  4  except for an M.P.O. with more than 15 members located in a

  5  county with a five-member county commission or an M.P.O. with

  6  19 members located in a county with no more than 6 county

  7  commissioners, in which case county commission members may

  8  compose less than one-third percent of the M.P.O. membership,

  9  but all county commissioners must be members. All voting

10  members shall be elected officials of general-purpose

11  governments, except that an M.P.O. may include, as part of its

12  apportioned voting members, a member of a statutorily

13  authorized planning board, or an official of an agency that

14  operates or administers a major mode of transportation, or an

15  official of the Spaceport Florida Authority.  In metropolitan

16  areas in which authorities or other agencies have been, or may

17  be, created by law to perform transportation functions that

18  are not under the jurisdiction of a general-purpose local

19  government represented on the M.P.O., they shall be provided

20  voting membership on the M.P.O.  The county commission shall

21  compose not less than 20 percent of the M.P.O. membership if

22  an official of an agency that operates or administers a major

23  mode of transportation has been appointed to an M.P.O.

24         (5)  POWERS, DUTIES, AND RESPONSIBILITIES.--The powers,

25  privileges, and authority of an M.P.O. are those specified in

26  this section or incorporated in an interlocal agreement

27  authorized under s. 163.01.  Each M.P.O. shall perform all

28  acts required by federal or state laws or rules, now and

29  subsequently applicable, which are necessary to qualify for

30  federal aid. It is the intent of this section that each M.P.O.

31  shall be involved in the planning and programming of


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  1  transportation facilities, including, but not limited to,

  2  airports, intercity and high-speed rail lines, seaports, and

  3  intermodal facilities, to the extent permitted by state or

  4  federal law.

  5         (b)  In developing the long-range transportation plan

  6  and the transportation improvement program required under

  7  paragraph (a), each M.P.O. must, at a minimum, consider:

  8         1.  The preservation of existing transportation

  9  facilities and, where practical, ways to meet transportation

10  needs by using existing facilities more efficiently;

11         2.  The consistency of transportation planning with

12  applicable federal, state, and local energy conservation

13  programs, goals, and objectives;

14         3.  The need to relieve congestion and prevent

15  congestion from occurring where it does not yet occur;

16         4.  The likely effect of transportation policy

17  decisions on land use and development and the consistency of

18  transportation plans and programs with all applicable

19  short-term and long-term land use and development plans;

20         5.  The programming of transportation enhancement

21  activities as required by federal law;

22         6.  The effect of all transportation projects to be

23  undertaken in the metropolitan area, without regard to whether

24  such projects are publicly funded;

25         7.  The provision of access to seaports, airports,

26  spaceports, intermodal transportation facilities, major

27  freight distribution routes, national and state parks,

28  recreation areas, monuments and historic sites, and military

29  installations;

30         8.  The need for roads within the metropolitan area to

31  efficiently connect with roads outside the metropolitan area;


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  1         9.  The transportation needs identified through the use

  2  of transportation management systems required by federal or

  3  state law;

  4         10.  The preservation of rights-of-way for construction

  5  of future transportation projects, including the

  6  identification of unused rights-of-way that may be needed for

  7  future transportation corridors and the identification of

  8  corridors for which action is most needed to prevent

  9  destruction or loss;

10         11.  Any available methods to enhance the efficient

11  movement of freight;

12         12.  The use of life-cycle costs in the design and

13  engineering of bridges, tunnels, or pavement;

14         13.  The overall social, economic, energy, and

15  environmental effects of transportation decisions;

16         14.  Any available methods to expand or enhance transit

17  services and increase the use of such services; and

18         15.  The possible allocation of capital investments to

19  increase security for transit systems.

20         (6)  LONG-RANGE PLAN.--Each M.P.O. must develop a

21  long-range transportation plan that addresses at least a

22  20-year planning horizon. The plan must include both

23  long-range and short-range strategies and must comply with all

24  other state and federal requirements. The long-range plan must

25  be consistent, to the maximum extent feasible, with future

26  land use elements and the goals, objectives, and policies of

27  the approved local government comprehensive plans of the units

28  of local government located within the jurisdiction of the

29  M.P.O. The approved long-range plan must be considered by

30  local governments in the development of the transportation

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  1  elements in local government comprehensive plans and any

  2  amendments thereto. The long-range plan must, at a minimum:

  3         (a)  Identify transportation facilities, including, but

  4  not limited to, major roadways, airports, seaports,

  5  spaceports, commuter rail systems, transit systems, and

  6  intermodal or multimodal terminals that will function as an

  7  integrated metropolitan transportation system.  The long-range

  8  plan must give emphasis to those transportation facilities

  9  that serve national, statewide, or regional functions, and

10  must consider the goals and objectives identified in the

11  Florida Transportation Plan as provided in s. 339.155.

12

13  In the development of its long-range plan, each M.P.O. must

14  provide affected public agencies, representatives of

15  transportation agency employees, private providers of

16  transportation, other interested parties, and members of the

17  general public with a reasonable opportunity to comment on the

18  long-range plan. The long-range plan must be approved by the

19  M.P.O.

20         (7)  TRANSPORTATION IMPROVEMENT PROGRAM.--Each M.P.O.

21  shall, in cooperation with the state and affected public

22  transportation operators, develop a transportation improvement

23  program for the area within the jurisdiction of the M.P.O.  In

24  the development of the transportation improvement program,

25  each M.P.O. must provide affected public transit agencies,

26  representatives of transportation agency employees, private

27  providers of transportation, other interested parties, and

28  members of the general public with a reasonable opportunity to

29  comment on the transportation improvement program.

30         (a)  Each M.P.O. is responsible for developing,

31  annually, a list of project priorities and a transportation


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  1  improvement program. The transportation improvement program

  2  will be used to initiate federally aided transportation

  3  facilities and improvements as well as other transportation

  4  facilities and improvements including transit, rail, aviation,

  5  spaceport, and port facilities to be funded from the State

  6  Transportation Trust Fund within its metropolitan area in

  7  accordance with existing and subsequent federal and state laws

  8  and rules and regulations related thereto.  The transportation

  9  improvement program shall be consistent, to the maximum extent

10  feasible, with the approved local government comprehensive

11  plans of the units of local government whose boundaries are

12  within the metropolitan area of the M.P.O.

13         (c)  The transportation improvement program must, at a

14  minimum:

15         1.  Include projects and project phases to be funded

16  with state or federal funds within the time period of the

17  transportation improvement program and which are recommended

18  for advancement during the next fiscal year and 4 subsequent

19  fiscal years.  Such projects and project phases must be

20  consistent, to the maximum extent feasible, with the approved

21  local government comprehensive plans of the units of local

22  government located within the jurisdiction of the M.P.O.  For

23  informational purposes, the transportation improvement program

24  shall also include a list of projects to be funded from local

25  or private revenues.

26         2.  Include projects within the metropolitan area which

27  are proposed for funding under 23 U.S.C. s. 134 of the Federal

28  Transit Act and which are consistent with the long-range plan

29  developed under subsection (6).

30         3.  Provide a financial plan that demonstrates how the

31  transportation improvement program can be implemented;


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  1  indicates the resources, both public and private, that are

  2  reasonably expected to be available to accomplish the program;

  3  and recommends any innovative financing techniques that may be

  4  used to fund needed projects and programs.  Such techniques

  5  may include the assessment of tolls, the use of value capture

  6  financing, or the use of congestion pricing.  The

  7  transportation improvement program may include a project or

  8  project phase only if full funding can reasonably be

  9  anticipated to be available for the project or project phase

10  within the time period contemplated for completion of the

11  project or project phase.

12         4.  Group projects and project phases of similar

13  urgency and anticipated staging into appropriate staging

14  periods.

15         5.  Indicate how the transportation improvement program

16  relates to the long-range plan developed under subsection (6),

17  including providing examples of specific projects or project

18  phases that further the goals and policies of the long-range

19  plan.

20         6.  Indicate whether any project or project phase is

21  inconsistent with an approved comprehensive plan of a unit of

22  local government located within the jurisdiction of the M.P.O.

23  If a project is inconsistent with an affected comprehensive

24  plan, the M.P.O. must provide justification for including the

25  project in the transportation improvement program.

26         7.  Indicate how the improvements are consistent, to

27  the maximum extent feasible, with affected seaport, and

28  airport, and spaceport master plans and with public transit

29  development plans of the units of local government located

30  within the jurisdiction of the M.P.O.

31         (9)  AGREEMENTS.--


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    CS for SB 2540                                 First Engrossed



  1         (a)  Each M.P.O. shall execute the following written

  2  agreements, which shall be reviewed, and updated as necessary,

  3  every 5 years:

  4         1.  An agreement with the department clearly

  5  establishing the cooperative relationship essential to

  6  accomplish the transportation planning requirements of state

  7  and federal law.

  8         2.  An agreement with the metropolitan and regional

  9  intergovernmental coordination and review agencies serving the

10  metropolitan areas, specifying the means by which activities

11  will be coordinated and how transportation planning and

12  programming will be part of the comprehensive planned

13  development of the area.

14         3.  An agreement with operators of public

15  transportation systems, including transit systems, commuter

16  rail systems, airports, and seaports, and spaceports,

17  describing the means by which activities will be coordinated

18  and specifying how public transit, commuter rail, aviation,

19  and seaport, and aerospace planning and programming will be

20  part of the comprehensive planned development of the

21  metropolitan area.

22         Section 10.  Commission on the Future of Aeronautics

23  and Space in Florida.--

24         (1)  The Legislature finds that the aviation and

25  aerospace industries comprise an important segment of

26  Florida's present and future economy. Yet, there exists

27  intense nationwide competition for future development of these

28  industries. The state has the resources to help these

29  industries meet the challenges and opportunities of

30  competition and to establish itself as a prime location for

31  aviation and aerospace industries, thus creating a prime


                                  18

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    CS for SB 2540                                 First Engrossed



  1  environment for economic development and employment

  2  opportunities. However, effective action and the necessary

  3  coordination of resources must be based on a reliable

  4  assessment of the present climate for such industries in the

  5  state. Further, the various options available for legislative

  6  action should be carefully considered.

  7         (2)  There is created the Commission on the Future of

  8  Aeronautics and Space in Florida. The commission shall be

  9  composed of the following 11 members:

10         (a)  The chairs of the Transportation Committees of the

11  Senate and the House of Representatives.

12         (b)  A representative of the Aviation Office of the

13  Department of Transportation, appointed by the Secretary of

14  Transportation.

15         (c)  A representative of the Spaceport Florida

16  Authority, appointed by the board of supervisors of the

17  authority.

18         (d)  Two members appointed by the Governor who are not

19  members of the Legislature.

20         (e)  Two members appointed by the President of the

21  Senate.

22         (f)  Two members appointed by the Speaker of the House

23  of Representatives.

24         (g)  An active manager of an airport in Florida

25  appointed by the Florida Airport Manager's Association.

26         (3)  The members appointed pursuant to paragraphs

27  (2)(d), (e), and (f), shall be selected so as to equitably

28  provide knowledge concerning and experience in the following

29  areas:  commercial aviation; aviation manufacturing; aviation

30  operations and maintenance; aerospace manufacturing; aerospace

31  operations and maintenance; and aeronautics-related education.


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    CS for SB 2540                                 First Engrossed



  1         (4)  The members of the commission shall be appointed

  2  within 30 days after the effective date of this act. The

  3  commission shall serve until adjournment sine die of the 2001

  4  Regular Session of the Legislature. Vacancies on the

  5  commission shall be filled in the same manner as the original

  6  appointment.

  7         (5)  Upon appointment of its members, the commission

  8  shall meet to organize and select a chair and vice chair.

  9  Meetings shall be held upon the call of the chair, but not

10  less frequently than quarterly.

11         (6)  The members of the commission shall serve without

12  compensation but shall be entitled to be reimbursed for per

13  diem and travel expenses as provided in section 112.061,

14  Florida Statutes. The Department of Transportation shall

15  provide administrative staff support and travel and per diem

16  expenses for the commission.

17         (7)  The commission shall:

18         (a)  Survey current state and local laws, ordinances,

19  and rules that affect the development and regulation of the

20  aviation and aerospace industries in Florida and recommend

21  ways in which these regulations can be streamlined and revised

22  to operate more efficiently. The commission should also

23  consider whether regulation and oversight in the fields of

24  aviation and aerospace should be centralized under one

25  governmental agency.

26         (b)  Examine the ways in which aviation and aerospace

27  industries, including the component elements of manufacturing,

28  assembly, marketing, servicing, maintenance, logistical

29  support, human resources, and related research and

30  development, can be attracted to locate permanently in the

31


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    CS for SB 2540                                 First Engrossed



  1  state, and recommend actions that can be taken by state and

  2  local governments to accomplish this goal.

  3         (c)  Review existing studies to evaluate the

  4  availability of commercial air services in Florida, identify

  5  underserved locations, and recommend actions that can be taken

  6  to improve the availability, efficiency, and economy of the

  7  state's commercial air services.

  8         (d)  Identify the advances that can be expected in the

  9  future in aeronautics and aerospace operations, air transport,

10  aeronautical education, and other aeronautical areas, and make

11  recommendations regarding how the state can anticipate,

12  encourage, and accommodate such advances.

13         (e)  Identify aid that is available at the federal

14  level to assist in efforts to improve Florida's aeronautical

15  and aerospace competitive position, and recommend ways in

16  which the state can be most effective in obtaining that aid.

17         (f)  Determine whether Florida's secondary and

18  postsecondary schools are producing a highly qualified

19  workforce in sufficient numbers to meet the needs of the

20  aviation and aerospace industries.

21         (8)  The commission shall prepare a preliminary report

22  of its findings and recommendations by December 1, 2000, and a

23  final report by January 15, 2001. Copies of the reports shall

24  be submitted to the Governor, the President and the Minority

25  Leader of the Senate, and the Speaker and the Minority Leader

26  of the House of Representatives. After submission of the final

27  report, members of the commission may, with the approval of

28  the chair, receive reimbursement pursuant to subsection (6)

29  for travel necessary to consult with the Legislature

30  concerning issues raised by, and implementation of, the final

31  report, until termination of the commission.


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    CS for SB 2540                                 First Engrossed



  1         Section 11.  Subsection (6) of section 196.012, Florida

  2  Statutes, is amended to read:

  3         196.012  Definitions.--For the purpose of this chapter,

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

  5  context clearly indicates otherwise:

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

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

  8  lessee under any leasehold interest created in property of the

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

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

11  other public body corporate of the state is demonstrated to

12  perform a function or serve a governmental purpose which could

13  properly be performed or served by an appropriate governmental

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

15  purpose which would otherwise be a valid subject for the

16  allocation of public funds. For purposes of the preceding

17  sentence, an activity undertaken by a lessee which is

18  permitted under the terms of its lease of real property

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

20  has been approved by the Federal Aviation Administration and

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

22  business offices and activities related specifically thereto

23  in connection with the conduct of an aircraft full service

24  fixed base operation which provides goods and services to the

25  general aviation public in the promotion of air commerce shall

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

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

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

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

30  332.004(14) by municipalities, agencies, special districts,

31  authorities, or other public bodies corporate and public


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    CS for SB 2540                                 First Engrossed



  1  bodies politic of the state, a spaceport as defined in s.

  2  331.303(19), or which is located in a deepwater port

  3  identified in s. 403.021(9)(b) and owned by one of the

  4  foregoing governmental units, subject to a leasehold or other

  5  possessory interest of a nongovernmental lessee that is deemed

  6  to perform an aviation, or airport, aerospace, or maritime, or

  7  port purpose or operation shall be deemed an activity that

  8  serves a governmental, municipal, or public purpose. The use

  9  by a lessee, licensee, or management company of real property

10  or a portion thereof as a convention center, visitor center,

11  sports facility with permanent seating, concert hall, arena,

12  stadium, park, or beach is deemed a use that serves a

13  governmental, municipal, or public purpose or function when

14  access to the property is open to the general public with or

15  without a charge for admission. If property deeded to a

16  municipality by the United States is subject to a requirement

17  that the Federal Government, through a schedule established by

18  the Secretary of the Interior, determine that the property is

19  being maintained for public historic preservation, park, or

20  recreational purposes and if those conditions are not met the

21  property will revert back to the Federal Government, then such

22  property shall be deemed to serve a municipal or public

23  purpose. The term "governmental purpose" also includes a

24  direct use of property on federal lands in connection with the

25  Federal Government's Space Exploration Program or spaceport

26  activities as defined in s. 212.02(22). Real property and

27  tangible personal property owned by the Federal Government or

28  the Spaceport Florida Authority and used for defense and space

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

30  thereof shall be deemed to perform an essential national

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


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    CS for SB 2540                                 First Engrossed



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

  2  property, buildings, or other real property improvements used

  3  for the administration, operation, business offices and

  4  activities related specifically thereto in connection with the

  5  conduct of an aircraft full service fixed based operation

  6  which provides goods and services to the general aviation

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

  8  property is designated as an aviation area on an airport

  9  layout plan approved by the Federal Aviation Administration.

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

11  other real property improvements which will revert to the

12  airport authority or other governmental unit upon expiration

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

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

15  telecommunications services to the public for hire by the use

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

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

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

19  unless the telecommunications services are provided by the

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

21  for the operator's provision of telecommunications services

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

23  or unless the telecommunications services are provided by a

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

25  provide such telecommunications services on or before October

26  1, 1997, shall remain exempt, but such exemption expires

27  October 1, 2004.

28         Section 12.  Paragraph (a) of subsection (1) of section

29  212.031, Florida Statutes, 1998 Supplement, is amended to

30  read:

31


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    CS for SB 2540                                 First Engrossed



  1         212.031  Lease or rental of or license in real

  2  property.--

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

  4  that every person is exercising a taxable privilege who

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

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

  7  such property is:

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

  9         2.  Used exclusively as dwelling units.

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

11  storage spaces under s. 212.03(6).

12         4.  Recreational property or the common elements of a

13  condominium when subject to a lease between the developer or

14  owner thereof and the condominium association in its own right

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

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

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

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

19  or the condominium association shall be fully taxable under

20  this chapter.

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

22  or used by a utility for utility purposes.

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

24  transportation purposes.

25         7.  Property used at an airport exclusively for the

26  purpose of aircraft landing or aircraft taxiing or property

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

28  passengers or property onto or from aircraft or for fueling

29  aircraft.

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

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


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    CS for SB 2540                                 First Engrossed



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

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

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

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

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

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

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

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

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

10  imported or exported shall remain subject to tax except as

11  provided in sub-subparagraph a.

12         9.  Property within spaceport territory leased from the

13  Spaceport Florida Authority which is used for spaceport

14  activities.

15         10.9.  Property used as an integral part of the

16  performance of qualified production services.  As used in this

17  subparagraph, the term "qualified production services" means

18  any activity or service performed directly in connection with

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

20  212.06(1)(b), and includes:

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

22  managing and scouting, shooting, creation of special and

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

24  electronic, or otherwise), technological modifications,

25  computer graphics, set and stage support (such as

26  electricians, lighting designers and operators, greensmen,

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

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

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

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

31  coaching, consulting, writing, scoring, composing,


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    CS for SB 2540                                 First Engrossed



  1  choreographing, script supervising, directing, producing,

  2  transmitting dailies, dubbing, mixing, editing, cutting,

  3  looping, printing, processing, duplicating, storing, and

  4  distributing;

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

  6  alteration, repair, and maintenance of real or personal

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

  8  facilities principally required for the performance of those

  9  services listed in sub-subparagraph a.; and

10         c.  Property management services directly related to

11  property used in connection with the services described in

12  sub-subparagraphs a. and b.

13         11.10.  Leased, subleased, or rented to a person

14  providing food and drink concessionaire services within the

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

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

17  arena, sports stadium, convention hall, exhibition hall,

18  auditorium, or recreational facility.  A person providing

19  retail concessionaire services involving the sale of food and

20  drink or other tangible personal property within the premises

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

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

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

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

25  leasing of tangible personal property.

26         12.11.  Property occupied pursuant to an instrument

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

28  Technical Assistance Advisement issued on or before March 15,

29  1993, to be nontaxable pursuant to rule 12A-1.070(19)(c),

30  Florida Administrative Code; provided that this subparagraph

31  shall only apply to property occupied by the same person


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    CS for SB 2540                                 First Engrossed



  1  before and after the execution of the subject instrument and

  2  only to those payments made pursuant to such instrument,

  3  exclusive of renewals and extensions thereof occurring after

  4  March 15, 1993.

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

  6  212.08, Florida Statutes, 1998 Supplement, is amended to read:

  7         212.08  Sales, rental, use, consumption, distribution,

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

  9  the rental, the use, the consumption, the distribution, and

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

11  following are hereby specifically exempt from the tax imposed

12  by this chapter.

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

14         (b)  Machinery and equipment used to increase

15  productive output.--

16         1.  Industrial machinery and equipment purchased for

17  exclusive use by a new business in spaceport activities as

18  defined by s. 212.02 or for use in new businesses which

19  manufacture, process, compound, or produce for sale, or for

20  exclusive use in spaceport activities as defined in s. 212.02,

21  items of tangible personal property at fixed locations are

22  exempt from the tax imposed by this chapter upon an

23  affirmative showing by the taxpayer to the satisfaction of the

24  department that such items are used in a new business in this

25  state. Such purchases must be made prior to the date the

26  business first begins its productive operations, and delivery

27  of the purchased item must be made within 12 months of that

28  date.

29         2.a.  Industrial machinery and equipment purchased for

30  exclusive use by an expanding facility which is engaged in

31  spaceport activities as defined by s. 212.02 or for use in


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    CS for SB 2540                                 First Engrossed



  1  expanding manufacturing facilities or plant units which

  2  manufacture, process, compound, or produce for sale, or for

  3  exclusive use in spaceport activities as defined in s. 212.02,

  4  items of tangible personal property at fixed locations in this

  5  state are exempt from any amount of tax imposed by this

  6  chapter in excess of $50,000 per calendar year upon an

  7  affirmative showing by the taxpayer to the satisfaction of the

  8  department that such items are used to increase the productive

  9  output of such expanded facility or business by not less than

10  10 percent.

11         b.  Notwithstanding any other provision of this

12  section, industrial machinery and equipment purchased for use

13  in expanding printing manufacturing facilities or plant units

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

15  of tangible personal property at fixed locations in this state

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

17  an affirmative showing by the taxpayer to the satisfaction of

18  the department that such items are used to increase the

19  productive output of such an expanded business by not less

20  than 10 percent.

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

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

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

24  The application shall state that a new business exemption or

25  expanded business exemption is being sought. Upon a tentative

26  affirmative determination by the department pursuant to

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

28  such permit.

29         b.  The applicant shall be required to maintain all

30  necessary books and records to support the exemption. Upon

31  completion of purchases of qualified machinery and equipment


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    CS for SB 2540                                 First Engrossed



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

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

  3  the department by certified or registered mail.

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

  5  department, it is determined that the machinery and equipment

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

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

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

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

10  payable to the department by the business entity, together

11  with the appropriate interest and penalty, computed from the

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

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

14  apply for a temporary exemption permit or if the tentative

15  determination by the department required to obtain a temporary

16  exemption permit is negative, a qualifying business entity

17  shall receive the exemption provided in subparagraph 1. or

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

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

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

21  commencement of production has occurred.

22         4.  The department shall promulgate rules governing

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

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

25  manner and form of refund applications and may establish

26  guidelines as to the requisites for an affirmative showing of

27  increased productive output, commencement of production, and

28  qualification for exemption.

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

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

31  electric utility companies, communications companies,


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    CS for SB 2540                                 First Engrossed



  1  phosphate or other solid minerals severance, mining, or

  2  processing operations, oil or gas exploration or production

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

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

  5  subject to regulation by the Division of Hotels and

  6  Restaurants of the Department of Business and Professional

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

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

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

10  tangible personal property or which does not use such

11  machinery and equipment in spaceport activities as required by

12  this paragraph.

13         6.  For the purposes of the exemptions provided in

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

15  meanings:

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

17  38 property" as defined in s. 48(a)(1)(A) and (B)(i) of the

18  Internal Revenue Code, provided "industrial machinery and

19  equipment" shall be construed by regulations adopted by the

20  Department of Revenue to mean tangible property used as an

21  integral part of spaceport activities or of the manufacturing,

22  processing, compounding, or producing for sale, or for

23  exclusive use in spaceport activities as defined in s. 212.02,

24  of items of tangible personal property. Such term includes

25  parts and accessories only to the extent that the exemption

26  thereof is consistent with the provisions of this paragraph.

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

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

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

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

31  continuous months immediately following the completion of


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    CS for SB 2540                                 First Engrossed



  1  installation of such machinery or equipment over the output

  2  for the 12 continuous months immediately preceding such

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

  4  period of time would more accurately reflect the increase in

  5  productive output of machinery and equipment purchased to

  6  facilitate an expansion, the increase in productive output may

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

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

  9  Revenue and the expanding business prior to the commencement

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

11  period begin later than 2 years following the completion of

12  installation of the new machinery and equipment. The units

13  used to measure productive output shall be physically

14  comparable between the two periods, irrespective of sales.

15         7.  Notwithstanding any other provision in this

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

17  provided in this paragraph a taxpayer must register with the

18  WAGES Program Business Registry established by the local WAGES

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

20  registration establishes a commitment on the part of the

21  taxpayer to hire WAGES program participants to the maximum

22  extent possible consistent with the nature of their business.

23         Section 14.  Subsection (4) of section 288.063, Florida

24  Statutes, 1998 Supplement, is amended, present subsections

25  (7), (8), and (9) are redesignated as subsections (8), (9),

26  and (10), respectively, and a new subsections (7) is added to

27  that section, to read:

28         288.063  Contracts for transportation projects.--

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

30  Development may adopt criteria by which transportation

31  projects are to be specified and identified. In approving


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    CS for SB 2540                                 First Engrossed



  1  transportation projects for funding, the Office of Tourism,

  2  Trade, and Economic Development shall consider factors

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

  4  retained considering the amount of transportation funds

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

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

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

  8  by the business; the demonstrated local commitment; the

  9  location of the project in an enterprise zone designated

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

11  community development corporation service area as defined in

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

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

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

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

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

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

18  any agency it deems appropriate for additional input regarding

19  the approval of projects.

20         (7)  For the purpose of this section, the Spaceport

21  Florida Authority may serve as the local government or as the

22  contracting agency for transportation projects within

23  spaceport territory as defined by s. 331.304.

24         Section 15.  Subsection (1) of section 288.075, Florida

25  Statutes, is amended to read:

26         288.075  Confidentiality of records.--

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

28  development agency" means the Office of Tourism, Trade, and

29  Economic Development Division of Economic Development of the

30  Department of Commerce, any industrial development authority

31  created in accordance with part III of chapter 159 or by


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    CS for SB 2540                                 First Engrossed



  1  special law, the Spaceport Florida Authority created in part

  2  II of chapter 331, the public economic development agency that

  3  advises the county commission on the issuance of industrial

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

  5  development authority created in accordance with part III of

  6  chapter 159 or by special law, or any research and development

  7  authority created in accordance with part V of chapter 159.

  8  The term also includes any private agency, person,

  9  partnership, corporation, or business entity when authorized

10  by the state, a municipality, or a county to promote the

11  general business interests or industrial interests of the

12  state or that municipality or county.

13         Section 16.  Subsection (2) of section 288.35, Florida

14  Statutes, is amended to read:

15         288.35  Definitions.--The following terms, wherever

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

17  meanings:

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

19  or political subdivision thereof; any state agency; any

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

21  municipalities located within said county; any chartered

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

23  consolidated governments, counties, or municipalities.

24  Specifically included are airports, port authorities, and

25  industrial authorities, and the Spaceport Florida Authority.

26         Section 17.  Subsection (2) of section 288.9415,

27  Florida Statutes, is amended to read:

28         288.9415  International Trade Grants.--

29         (2)  A county, municipality, economic development

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

31  association of businesses organized to assist in the promotion


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    CS for SB 2540                                 First Engrossed



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

  2  for the promotion of international trade.

  3         Section 18.  Subsections (1) and (18) of section

  4  331.305, Florida Statutes, is amended to read:

  5         331.305  Powers of the authority.--The authority shall

  6  have the power to:

  7         (1)  Exercise all powers granted to corporations under

  8  the Florida Business General Corporation Act, chapter 607.

  9         (18)  Establish a personnel management system for

10  hiring employees and setting employee benefit packages.  The

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

12  within the state employment system, but are eligible to

13  participate in state employee education and training

14  opportunities established under s. 110.1099.

15         Section 19.  Subsection (2) of section 331.309, Florida

16  Statutes, 1998 Supplement, is amended to read:

17         331.309  Treasurer; depositories; fiscal agent.--

18         (2)  The board is authorized to select as depositories

19  in which the funds of the board and of the authority shall be

20  deposited any qualified public depository as defined in s.

21  280.02, upon such terms and conditions as to the payment of

22  interest by such depository upon the funds so deposited as the

23  board may deem just and reasonable. Funds of the authority may

24  also be deposited with the Florida Commercial Space Financing

25  Corporation created by s. 331.407. The funds of the authority

26  may be kept in or removed from the State Treasury upon written

27  notification from the chair of the board to the State

28  Comptroller.

29         Section 20.  Section 331.3475, Florida Statutes, is

30  created to read:

31         331.3475  Spaceport Facility Loan Guarantee Program.--


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    CS for SB 2540                                 First Engrossed



  1         (1)  The Spaceport Florida Authority may determine the

  2  situations and circumstances for its participation in

  3  agreements with the Federal Government, financial

  4  institutions, and others associated with the development of

  5  aerospace facilities pursuant to this section for a limited

  6  state guaranty of up to 30 years of loan guarantees or loan

  7  loss reserves issued pursuant to law. The limited state loan

  8  guaranty applies only to the primary lenders loans for

  9  development of projects as defined in s. 331.303(16) in

10  spaceport territories where a federal agency, federal

11  contractor, or affiliated entity or contractor is the

12  leaseholder. A state guaranty of private loans or a loan loss

13  reserve may be authorized for lenders licensed to operate in

14  the state upon a determination by the authority that such an

15  arrangement would be in the public interest and the likelihood

16  of the success of the loan is great.

17         (2)  Approval of a proposed loan guarantee shall be by

18  an Aerospace Facility Financing Review Council, which shall

19  consist of the Secretary of Transportation or the secretary's

20  designee, the Executive Director of the State Board of

21  Administration or the executive director's designee, and the

22  director of the Governor's Office of Tourism, Trade, and

23  Economic Development or the director's designee. The

24  chairperson of the council shall be the director of the

25  Governor's Office of Tourism, Trade, and Economic Development.

26  Staff services for activities of the council shall be provided

27  as needed by the member agencies.

28         (3)  The Spaceport Florida Authority may enter into an

29  investment agreement obligating existing revenues on deposit

30  or future revenues projected to be available for deposit in

31


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    CS for SB 2540                                 First Engrossed



  1  the segregated account provided for by s. 331.365(2). The

  2  investment must be limited as follows:

  3         (a)  Not more than $50 million of the existing revenues

  4  on deposit or future revenues projected to be available for

  5  deposit in the segregated account provided for by s. 331.365

  6  may be at risk at any time on loan guarantees or as loan loss

  7  reserves.

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

  9  guarantee any loan guaranty or loan loss reserve agreement for

10  a period longer than 30 years.

11         (4)  A lender seeking approval of a limited state

12  guaranty for a loan from the Aerospace Facility Financing

13  Review Council must first provide to the Spaceport Florida

14  Authority and the council a report demonstrating that the

15  lender has reviewed the project and determined its feasibility

16  in accordance with its standard procedures. The procedures

17  include, but are not limited to:

18         (a)  Obtaining a satisfactory credit report from a

19  source deemed reliable by the lender;

20         (b)  Investigating the background and experience of the

21  manager of the project and determining that the managing

22  entity appears to possess the experience, competence, and

23  capacity to manage the project;

24         (c)  Determining that conditions exist to establish a

25  financially sound development project that exposes the state

26  loan guarantee program to a reasonable or negligible level of

27  risk;

28         (d)  Determining that the federal agency with

29  jurisdiction over the area where the development project is

30  located has committed in-kind resources, financial incentives,

31  or financial resources to the total project cost; and


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    CS for SB 2540                                 First Engrossed



  1         (e)  Evaluating the prospects for continued funding of

  2  the program or programs that will be the primary users of the

  3  project.

  4         (5)  A lender covered by a limited state guaranty for a

  5  loan is not entitled to file a claim for loss pursuant to the

  6  guaranty unless all reasonable and normal remedies available

  7  to and customary for lending institutions for resolving

  8  problems of loan repayments are exhausted. If the lender has

  9  received collateral security in connection with the loan, the

10  lender must first exhaust all available remedies against the

11  collateral security.

12         (6)  The council may establish requirements for the

13  issuance of loan guarantees, including contractual provisions

14  to foster reimbursement, in the event of default, to the

15  guarantee fund.

16         (7)  The council may receive public and private funds,

17  federal grants, and private donations in carrying out its

18  responsibilities.

19         (8)  The authority shall include in the annual report

20  required under s. 331.310(13), a description of its activities

21  and agreements approved relating to development of spaceport

22  territory under this section. This section shall be reviewed

23  by the Legislature by October 1, 2004, and a determination

24  made related to the need to continue or modify this section.

25  New loan guarantees may not be approved in 2005 until the

26  review by the Legislature has been completed and a

27  determination has been made as to the feasibility of

28  continuing the use of the segregated account provided for by

29  s. 331.365 to guarantee portions of loans under this section.

30         Section 21.  Part III of chapter 331, Florida Statutes,

31  consisting of sections 331.401, 331.403, 331.405, 331.407,


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    CS for SB 2540                                 First Engrossed



  1  331.409, 331.411, 331.415, 331.417, 331.419, and 331.421, is

  2  created to read:

  3         331.401  Short title.--Sections 331.401-331.421 may be

  4  cited as the "Florida Commercial Space Financing Corporation

  5  Act."

  6         331.403  Legislative findings and intent.--The

  7  Legislature finds that the expansion of state and federal

  8  support for the aerospace industry in Florida is critical to

  9  the continued development of a viable commercial space

10  industry and the technical and scientific job base for its

11  citizens. This development of commercial opportunities in

12  Florida is slowed by the lack of traditional business

13  financing tools such as securitization for industrial

14  development. Florida's launch industry is also being

15  challenged by the provision of such industry assistance by

16  other countries. Florida's aerospace industry could be

17  assisted by a corporation established to work with the United

18  States Export-Import Bank, the Small Business Administration,

19  the National Aeronautics and Space Administration, and other

20  federal, state, and private sources to provide information,

21  technical assistance, and financial support. It is the

22  intention of the Legislature to retain and expand job

23  opportunities for Florida citizens through this mechanism.

24         331.405  Definitions.--As used in this part:

25         (1)  "Account" means the account established pursuant

26  to s. 331.415.

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

28  created by s. 331.302.

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

30  corporation.

31


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    CS for SB 2540                                 First Engrossed



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

  2  Financing Corporation.

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

  4  business in Florida.

  5         (6)  "Financing agreement" has the same meaning as in

  6  s. 331.303(10).

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

  8  s. 655.005(1)(h).

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

10  member of the board.

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

12  the corporation.

13         331.407  Florida Commercial Space Financing

14  Corporation.--

15         (1)  The Florida Commercial Space Financing Corporation

16  is created as a corporation not for profit.  The corporation

17  shall have all the powers, rights, privileges, and authority

18  as provided under chapter 617 and this part.  The corporation

19  shall be organized on a nonstock basis. The purpose of the

20  corporation is to expand employment and income opportunities

21  for residents of this state by providing businesses domiciled

22  in this state with information, technical assistance, and

23  financial assistance to support space-related transactions, in

24  order to increase the development within the state of

25  commercial aerospace products, activities, services, and

26  facilities.

27         (2)  The corporation shall have the power and authority

28  to carry out the following functions:

29         (a)  To coordinate its efforts with programs and goals

30  of the United States Air Force, the National Aeronautics and

31  Space Administration, the Export-Import Bank, the


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    CS for SB 2540                                 First Engrossed



  1  International Trade Administration of the United States

  2  Department of Commerce, the Foreign Credit Insurance

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

  4  other private and public programs and organizations, domestic

  5  and foreign.

  6         (b)  To establish a network of contacts among those

  7  domestic and foreign public and private organizations which

  8  provide information, technical assistance, and financial

  9  support to the aerospace industry.

10         (c)  To assemble, publish, and disseminate information

11  on financing opportunities and techniques of financing

12  aerospace projects, programs, and activities; sources of

13  public and private aerospace financing assistance; and sources

14  of space-related financing.

15         (d)  To organize, host, and participate in seminars and

16  other forums designed to disseminate information and technical

17  assistance regarding space-related financing.

18         (e)  To insure, coinsure, lend, and guarantee loans,

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

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

21  board.

22         (f)  To capitalize, underwrite, and secure funding for

23  aerospace infrastructure, satellites, launch vehicles, and any

24  service which supports aerospace launches.

25         (g)  To construct, lease, or sell aerospace

26  infrastructure, satellites, launch vehicles, and any other

27  related activities and services.

28         (h)  To acquire property, including real, personal,

29  tangible, intangible, or mixed, under such conditions as the

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

31  dispose of the same.


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    CS for SB 2540                                 First Engrossed



  1         (i)  To make and exercise any and all contracts or

  2  other instruments necessary or convenient to the exercise of

  3  its powers, including financing agreements.

  4         331.409  Powers and limitations.--

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

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

  7  be determined by the board.

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

  9  originations for sale, and insured transactions outstanding

10  shall not be more than five times the balance of the account.

11  The board may elect to require a higher reserve.

12         (3)  The board shall adopt rules with respect to the

13  terms and limits for loans, guarantees, and direct loan

14  originations, but a loan guarantee or a direct loan

15  origination shall not exceed 90 percent of the transaction

16  contract.

17         (4)  In providing assistance, the board shall create a

18  fiscal strategy for Florida which will guide and facilitate

19  the successful expansion of space-related jobs.

20         (5)  The board shall explore the possibility of

21  organizing financial institutions and international bank

22  syndicates for the purpose of offering nonrecourse financing

23  to the Florida aerospace industry.

24         (6)  The board may exercise all powers granted to

25  not-for-profit corporations under chapter 617.

26         (7)  The board shall manage all funds in its possession

27  and invest in permissible securities.

28         331.411  Board of directors; powers and duties.--

29         (1)  There is created a board of directors of the

30  corporation, which shall consist of up to 7 voting members as

31  follows:


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    CS for SB 2540                                 First Engrossed



  1         (a)  One representative appointed by each of the

  2  following:

  3         1.  The board of supervisors of the Spaceport Florida

  4  Authority.

  5         2.  The board of directors of the Florida Export

  6  Finance Corporation.

  7         3.  The director of the Office of Tourism, Trade, and

  8  Economic Development.

  9         4.  The board of directors of Enterprise Florida, Inc.

10         5.  The Secretary of Transportation.

11         (b)  The Governor shall appoint the following members:

12         1.  A member representing the investment banking

13  industry.

14         2.  An attorney at law in private practice.

15

16  The board shall also include two ex officio nonvoting members,

17  a member of the House of Representatives selected by the

18  Speaker of the House of Representatives, and a member of the

19  Senate selected by the President of the Senate, both of whom

20  shall serve 2-year terms.

21         (2)  Each voting member shall serve a 3-year term,

22  beginning on July 1. Members appointed pursuant to paragraph

23  (1)(a) shall serve at the pleasure of the appointing

24  authority. Members appointed pursuant to paragraph (1)(b)

25  shall serve at the pleasure of the Governor. Initial

26  appointments shall be made no later than 60 days after the

27  effective date of this act.

28         (3)(a)  No person appointed pursuant to paragraph

29  (1)(a) may be employed full time by any entity that applies

30  for financial support.

31


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    CS for SB 2540                                 First Engrossed



  1         (b)  The members of the board who are federal employees

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

  3  corporate policies and procedures.

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

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

  6  than 30 days after the members have been appointed.

  7         (5)  At its first meeting, the board shall appoint a

  8  president of the corporation from qualified candidates who

  9  have been screened and interviewed by the Spaceport Florida

10  Authority.

11         (6)  Board members shall serve without compensation but

12  may be reimbursed for all necessary expenses in the

13  performance of their duties, including attending board

14  meetings and conducting board business.

15         (7)  The board shall:

16         (a)  Prior to the expenditure of funds from the

17  account, adopt bylaws, rules, and policies necessary to carry

18  out its responsibilities under this part, particularly with

19  respect to the implementation of the corporation's programs to

20  insure, coinsure, lend, provide loan guarantees, and make

21  direct, guaranteed, or collateralized loans to support

22  space-related transactions.

23         (b)  Hold regularly scheduled meetings, at least

24  quarterly, in order to carry out the objectives and

25  responsibilities of the board.

26         (c)  Adopt policies, including criteria, establishing

27  which space-related transactions shall be eligible for

28  insurance, coinsurance, loan guarantees, and direct,

29  guaranteed, or collateralized loans which may be extended by

30  the corporation.  To implement this paragraph, the board shall

31  adopt rules which include the following criteria:


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    CS for SB 2540                                 First Engrossed



  1         1.  Any individual signing any corporation loan

  2  application and loan or guarantee agreement must have an

  3  equity interest in the business applying for financial

  4  assistance.

  5         2.  Applicants must be domiciled in this state and will

  6  be contractually obligated to use Florida launch facilities to

  7  the maximum extent possible.

  8         (d)  Adopt requirements to ensure the full repayment of

  9  loans and loan guarantees, plus accrued interest,

10  full-recourse claims, and indemnities on direct loan

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

12  insurance and coinsurance program extended under this part.

13         (e)  Approve any extension of insurance, coinsurance,

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

15  under this part.

16         (f)  Consult with Enterprise Florida, Inc., and its

17  boards, or any state or federal agency, to ensure that their

18  respective loan guarantee or working capital loan origination

19  programs are not duplicative and that each program makes full

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

21         (g)  Work to secure a delegated line of authority from

22  the United States Export-Import Bank or other appropriate

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

24  take advantage of possible funding or guarantee sources.

25         (h)  Develop a streamlined application and review

26  process.

27         331.415  Authority to create account.--

28         (1)  The board shall create an account for the purposes

29  of this part to receive state, federal, and private financial

30  resources, and the return from investments of those resources.

31  The account shall be under the exclusive control of the board.


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    CS for SB 2540                                 First Engrossed



  1         (2)  Resources in the account shall be allocated for

  2  operating expenses of the corporation and for other purposes

  3  authorized by this part.

  4         (3)(a)  Appropriations for the corporation shall be

  5  deposited into the account.

  6         (b)  The board may deposit the resources of the account

  7  with state or federally chartered financial institutions in

  8  this state and may invest the remaining portion in permissible

  9  securities.

10         (c)  At all times, the board shall attempt to maximize

11  the returns on funds in the account.

12         (d)  All funds received from the activities of the

13  corporation shall be redeposited in the account to be used to

14  support the purposes of this part.

15         (4)  Any claims against the account shall be paid

16  solely from the account. Under no circumstances shall the

17  credit of the state be pledged other than funds appropriated

18  by law to the account, nor shall the state be liable or

19  obligated in any way for claims on the account or against the

20  corporation.

21         331.417  President.--

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

23  shall 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 fixed by the

27  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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    CS for SB 2540                                 First Engrossed



  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 this part.

  6         (d)  Participate with government or private industry in

  7  programs for technical assistance, loans, technology transfer,

  8  or any other programs related to this part.

  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 training for them and other

13  individuals involved in finance assistance, including such

14  training sessions as may be provided by the United States

15  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         331.419  Reports and audits.--

23         (1)  By December 31 of each year, the corporation shall

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

25  Speaker of the House of Representatives, the Senate Minority

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

27  report setting forth:

28         (a)  An evaluation of its activities and

29  recommendations for change.

30         (b)  The corporation's impact on the participation of

31  private banks and other private organizations and individuals


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    CS for SB 2540                                 First Engrossed



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

  2  and social benefits to businesses in this state.

  3         (c)  Its assets and liabilities at the end of its most

  4  recent fiscal year.

  5         (2)  By September 1, 2000, the corporation, in

  6  cooperation with the Office of Program Policy Analysis and

  7  Government Accountability, shall develop a research design,

  8  including goals and measurable objectives for the corporation,

  9  which will provide the Legislature with a quantitative

10  evaluation of the corporation. The corporation shall utilize

11  the monitoring mechanisms and reports developed in the designs

12  and provide these reports to the Governor, the President of

13  the Senate, the Speaker of the House of Representatives, and

14  the Office of Program Policy Analysis and Government

15  Accountability.

16         (3)  Prior to the 2001 Regular Session of the

17  Legislature, the Office of Program Policy Analysis and

18  Government Accountability shall perform a review and

19  evaluation of the corporation using the research design

20  promulgated pursuant to subsection (2). The report shall

21  critique the corporation. A report of the findings and

22  recommendations of the Office of Program Policy Analysis and

23  Government Accountability shall be submitted to the President

24  of the Senate and the Speaker of the House of Representatives

25  prior to the 2001 Regular Session.

26         (4)  The Division of Banking of the Department of

27  Banking and Finance shall review the corporation's activities

28  once every 24 months to determine compliance with this part

29  and related laws and rules and to evaluate the corporation's

30  operations. The division shall prepare a report based on its

31  review and evaluation with recommendation for any corrective


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    CS for SB 2540                                 First Engrossed



  1  action. The president shall submit to the division regular

  2  reports on the corporation's activities. The content and

  3  frequency of such reports shall be determined by the division.

  4  The division may charge a fee for conducting the review and

  5  evaluation and preparing the related report, which fee shall

  6  not be in excess of the examination fee paid by chartered or

  7  licensed financial institutions.

  8         331.421  Pledge of revenues by authority.--The

  9  Spaceport Florida Authority may pledge existing revenues on

10  deposit or future revenues projected to be available for

11  deposit in the segregated account provided for by s.

12  331.365(2) in order to guarantee, in whole or in part, the

13  payment of principal and interest on a loan made by the

14  corporation, subject to the review and certification by the

15  Office of Tourism, Trade, and Economic Development as provided

16  in s. 331.365(3) and approval by the Aerospace Facility

17  Financing Review Council as provided in s. 331.3475.

18         Section 22.  Section 331.365, Florida Statutes, is

19  created to read:

20         331.365  Florida Space Industry and Research Facility

21  Development Program.--

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

23  Research Facility Development Program within the Spaceport

24  Florida Authority to finance space industry research,

25  manufacturing, and other industrial support facilities,

26  projects, and programs that will improve the statewide

27  development of space-related economic and academic

28  opportunities.

29         (2)  State taxes imposed pursuant to chapter 212 which

30  are collected at the Kennedy Space Center Visitor Complex

31  shall be distributed to the Spaceport Florida Authority as


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    CS for SB 2540                                 First Engrossed



  1  provided by s. 212.20(6)(f) and shall be used to fund the

  2  Florida Space Industry and Research Facility Development

  3  Program. Such funds shall be distributed quarterly by the

  4  Department of Revenue to the Spaceport Florida Authority. The

  5  Spaceport Florida Authority shall place all of such funds in a

  6  segregated account, and the account and its activity shall be

  7  subject to an annual audit.

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

  9  projects as defined by s. 331.303(16) that have been

10  recommended by the Spaceport Management Council created by s.

11  331.367 and approved by the Spaceport Florida Authority board

12  of supervisors. The Office of Tourism, Trade, and Economic

13  Development shall review and certify funding proposals for

14  consistency with this section.

15         (4)  Any project or project user which receives funding

16  under this program shall institute procedures to ensure that

17  jobs created as a result of the state funding shall be subject

18  to equal opportunity hiring practices in the manner provided

19  in s. 110.112.

20         (5)  The Office of Tourism, Trade, and Economic

21  Development shall subject any project that receives funds

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

23  adopt rules and perform such other acts as are necessary to

24  ensure that the final audits are conducted and that any

25  deficiency or questioned costs noted by the audit are

26  resolved.

27         Section 23.  Present paragraph (f) of subsection (6) of

28  section 212.20, Florida Statutes, 1998 Supplement, is

29  redesignated as paragraph (g), and a new paragraph (f) is

30  added to that subsection, to read:

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    CS for SB 2540                                 First Engrossed



  1         212.20  Funds collected, disposition; additional powers

  2  of department; operational expense; refund of taxes

  3  adjudicated unconstitutionally collected.--

  4         (6)  Distribution of all proceeds under this chapter

  5  shall be as follows:

  6         (f)  Proceeds from the state taxes imposed pursuant to

  7  this chapter which are collected at the Kennedy Space Center

  8  Visitor Complex shall be distributed by the department to the

  9  Spaceport Florida Authority for use as provided in s. 331.365.

10  However, the authority shall receive a minimum of $4 million

11  each fiscal year under this paragraph and, if in any fiscal

12  year such proceeds are less than $4 million, additional

13  proceeds under this chapter shall be distributed to the

14  authority to assure such minimum distribution.

15         Section 24.  Section 331.367, Florida Statutes, is

16  created to read:

17         331.367  Spaceport Management Council.--

18         (1)  The Spaceport Management Council is created within

19  the Spaceport Florida Authority to provide coordination and

20  recommendations on projects and activities that will increase

21  the operability and capabilities of Florida's space launch

22  facilities, increase statewide space-related industry and

23  opportunities, and promote space education and research within

24  the state. The council shall work to develop integrated

25  facility and programmatic development plans to address

26  commercial, state, and federal requirements and to identify

27  appropriate private, state, and federal resources to implement

28  these plans.

29         (2)  The council shall make recommendations regarding:

30

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    CS for SB 2540                                 First Engrossed



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

  2  Industry and Research Facility Development Program created by

  3  s. 331.365.

  4         (b)  The development of a spaceport master plan.

  5         (c)  The projects and levels of commercial financing

  6  required from the Florida Commercial Space Financing

  7  Corporation created by s. 331.407.

  8         (d)  Development and expansion of space-related

  9  education and research programs within Florida, including

10  recommendations to be provided to the State University System,

11  the Division of Community Colleges, and the Department of

12  Education.

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

14  policy.

15         (f)  Florida's approach to the Federal Government

16  regarding requests for funding of space development.

17         (3)(a)  The council shall consist of an executive

18  board, which shall consist of representatives of governmental

19  organizations with responsibilities for developing or

20  operating space transportation facilities, and a Space

21  Industry Committee, which shall consist of representatives of

22  Florida's space industry.

23         (b)  The following individuals shall serve on the

24  executive board:

25         1.  The executive director of the Spaceport Florida

26  Authority or his or her designee.

27         2.  The director of the John F. Kennedy Space Center or

28  his or her designee.

29         3.  The Commander of the United States Air Force 45th

30  Space Wing or his or her designee.

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    CS for SB 2540                                 First Engrossed



  1         4.  The Commander of the Naval Ordnance Test Unit or

  2  his or her designee.

  3         5.  The Secretary of Transportation or his or her

  4  designee.

  5         6.  The president of Enterprise Florida, Inc., or his

  6  or her designee, as an ex officio nonvoting member.

  7         7.  The director of the Office of Tourism, Trade, and

  8  Economic Development or his or her designee, as an ex officio

  9  nonvoting member.

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

11  3-year term, beginning July 1. Initial appointments shall be

12  made no later than 60 days after the effective date of this

13  act.

14         (5)  The executive board shall hold its initial meeting

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

16  The Space Industry Committee shall hold its initial meeting no

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

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

19  state.

20         (7)  The council shall adopt bylaws governing the

21  manner in which the business of the council shall be

22  conducted. The bylaws shall specify the procedure by which the

23  chairperson of the council is elected.

24         (8)  The council shall provide infrastructure and

25  program requirements and develop other information to be

26  utilized in a 5-year spaceport master plan. The council shall

27  define goals and objectives concerning the development of

28  spaceport facilities and an intermodal transportation system

29  consistent with the goals of the Florida Transportation Plan

30  developed pursuant to s. 339.155.

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  1         (9)  The council shall provide requirements and other

  2  information to be utilized in the development of a 5-year

  3  Spaceport Economic Development Plan, defining the goals and

  4  objectives of the council concerning the development of space

  5  manufacturing, research and development, and educational

  6  facilities.

  7         (10)(a)  The council shall adopt procedures for

  8  evaluating projects which may be funded under s. 331.365. The

  9  rules shall provide criteria for evaluating the economic

10  benefit of the project, measured by the potential for the

11  proposed project to increase manufacturing activity,

12  international commerce, spaceport revenues, and the number of

13  jobs.

14         (b)  The council shall review and recommend projects

15  eligible to be funded pursuant to the Florida Space Industry

16  and Research Facility Development Program.

17         (c)  The Office of Tourism, Trade, and Economic

18  Development shall review the list of projects approved by the

19  council to evaluate the economic benefit of the projects. The

20  office shall identify those projects that it determines do not

21  offer an economic benefit to the state, and shall notify the

22  council of its findings.

23         (11)  The council shall meet at the call of its

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

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

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

27  voting members of the council constitutes a quorum for the

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

29  the majority of the voting members present is sufficient for

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

31  require a greater vote for a particular action.


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  1         (12)  Members of the council shall serve without

  2  compensation but are entitled to receive reimbursement for per

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

  4  council may elect to establish an administrative staff to

  5  provide services to the council on matters relating to the

  6  Florida Space Industry and Research Facility Development

  7  Program and the council's other activities. The Spaceport

  8  Florida Authority shall pay the cost for such administrative

  9  services.

10         Section 25.  (1)  There is created the Florida Space

11  Research Institute the purpose of which is to serve as an

12  industry-driven center for research, leveraging the state's

13  resources in a collaborative effort to support Florida's space

14  industry and its transition to commercialization.

15         (2)  The institute shall operate as a public/private

16  partnership under the direction of a board comprised of

17  representatives of the Spaceport Florida Authority, Enterprise

18  Florida, Inc., the Florida Aviation and Aerospace Alliance,

19  and four additional space industry representatives selected by

20  the core membership of the board.

21         (3)  The board of the Florida Space Research Institute

22  shall:

23         (a)  Set the strategic direction for the institute

24  including research priorities, the scope of research projects,

25  and the timeframes for completion.

26         (b)  Invite the participation of public and private

27  universities including, but not limited to, the University of

28  Central Florida, the University of Florida, the University of

29  South Florida, Florida State University, Florida Institute of

30  Technology, and the University of Miami.

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  1         (c)  Select a lead university to serve as coordinator

  2  of research and as the administrative entity of the institute.

  3         (4)  By December 1 of each year, the institute shall

  4  submit a report of its activities and accomplishments for the

  5  prior fiscal year to the Governor, the President of the

  6  Senate, and the Speaker of the House of Representatives. The

  7  report shall also include recommendations regarding actions

  8  the state should take to enhance the development of

  9  space-related businesses, including:

10         (a)  Future research activities.

11         (b)  The development of capital and technology

12  assistance to new and expanding industries.

13         (c)  The removal of regulatory impediments.

14         (d)  The establishment of business development

15  incentives.

16         (e)  The initiation of education and training programs

17  to ensure a skilled workforce.

18         Section 26.  Florida Commercial Space Development

19  Incentive Program.--

20         (1)(a)  The Legislature finds that attracting,

21  retaining, and providing favorable conditions for the growth

22  of commercial space facilities provides widespread economic

23  benefits to the public through high-quality employment

24  opportunities in such facilities and in related facilities

25  attracted to the state, through the increased tax base

26  provided by such facilities and businesses in related sectors,

27  through an enhanced entrepreneurial climate in the state and

28  the resulting business and employment opportunities, and

29  through the stimulation and enhancement of the state's

30  universities and community colleges. In the global economy,

31  there exists serious and fierce international competition for


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    CS for SB 2540                                 First Engrossed



  1  commercial space facilities, and in most instances, when all

  2  available resources for economic development have been used,

  3  the state continues to encounter severe competitive

  4  disadvantages in vying for these high-impact business

  5  facilities.

  6         (b)  The Legislature therefore declares that sufficient

  7  resources shall be available to respond to such extraordinary

  8  economic opportunities and to compete effectively for these

  9  commercial space facilities and related businesses, including

10  but not limited to facilities and businesses related to a

11  reusable launch vehicle or similar space-transportation

12  system.

13         (2)  There is created within the Office of Tourism,

14  Trade, and Economic Development the Florida Commercial Space

15  Development Incentive Program.

16         (3)(a)  Enterprise Florida, Inc., shall evaluate

17  individual proposals for commercial space business facilities

18  and forward recommendations regarding the use of moneys under

19  the program for such facilities to the director of the Office

20  of Tourism, Trade, and Economic Development. Such evaluation

21  and recommendation must include, but need not be limited to:

22         1.  A description of the type of facility, its business

23  operation, and the product or service associated with the

24  facility.

25         2.  The number of full-time-equivalent jobs that will

26  be created by the facility and the total estimated average

27  annual wages of those jobs.

28         3.  The cumulative amount of investment to be dedicated

29  to the facility within a specified period.

30         4.  A statement of any special impacts the facility is

31  expected to stimulate in a particular business sector in the


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    CS for SB 2540                                 First Engrossed



  1  state or regional economy or in the state's universities and

  2  community colleges.

  3         5.  A statement of environmental or regulatory issues

  4  involved with the project.

  5         6.  A statement in which Enterprise Florida, Inc., must

  6  indicate that in its best judgment the commercial space

  7  business facility project will not occur at the proposed site

  8  in Florida without the use of the incentive program.

  9         7.  A statement on the manner in which program funds

10  will be used under the project.

11         (b)  The business must have provided a performance bond

12  that guarantees the creation of jobs for at least 10 years.

13         (c)  The high-impact business facility must create at

14  least 1,000 jobs, or create at least 300 jobs in a rural

15  community or a distressed urban-core community. The jobs to be

16  created must pay a wage that exceeds the average wage in the

17  affected community by 20 percent, and the employer must

18  provide a health-benefit package for employees.

19         (3)  Upon receipt of the evaluation and recommendation

20  from Enterprise Florida, Inc., the director shall recommend

21  approval or disapproval of a project for receipt of funds

22  under the Florida Commercial Space Development Incentive

23  Program to the Governor. In recommending a commercial space

24  business facility, the director shall include proposed

25  performance conditions that the facility must meet to obtain

26  incentive funds. The Governor shall consult with the President

27  of the Senate and the Speaker of the House of Representatives

28  before giving approval for a project.

29         (4)  Upon approving a project, the Governor, through

30  the director of the Office of Tourism, Trade, and Economic

31  Development, shall initiate a budget amendment under chapter


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    CS for SB 2540                                 First Engrossed



  1  216, Florida Statutes, requesting a specific amount for an

  2  approved project to be paid from the Working Capital Fund. The

  3  total amount of all approved projects in any one fiscal year

  4  shall not exceed $10 million.

  5         (5)(a)  Upon the approval of the budget amendment, the

  6  director of the Office of Tourism, Trade, and Economic

  7  Development and the commercial space business shall enter into

  8  a contract that sets forth the conditions for payment of

  9  moneys under this program. The contract must include the total

10  amount of funds awarded; the performance conditions that must

11  be met to obtain the award, including, but not limited to, net

12  new employment in the state, average salary, and total capital

13  investment; the methodology for validating performance; the

14  schedule of payments under the program; the manner in which

15  funds will be utilized; and sanctions for failure to meet

16  performance conditions.

17         (b)  Enterprise Florida, Inc., shall validate

18  contractor performance. Such validation shall be reported

19  within 6 months after completion of the contract to the

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

21  House of Representatives.

22         Section 27.  If any provision of this act or the

23  application thereof to any person or circumstance is held

24  invalid, the invalidity does not affect other provisions or

25  applications of the act which can be given effect without the

26  invalid provision or application, and to this end the

27  provisions of this act are declared severable.

28         Section 28.  Section 196.1994, Florida Statutes, is

29  amended to read:

30         196.1994  Space laboratories and carriers exemption.--

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  1         (1)  Notwithstanding other provisions of this chapter,

  2  modules, pallets, racks, lockers, and their necessary

  3  associated hardware and subsystems owned by any person and

  4  intended for use as space laboratories launched into space

  5  aboard the space shuttle for the primary purpose of conducting

  6  scientific research in space or as cargo carriers launched

  7  into space aboard the space shuttle for the primary purpose of

  8  transporting or storing cargo are deemed to carry out a

  9  scientific purpose and are exempt from ad valorem taxation.

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

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

12  the amendment to section 196.1994, Florida Statutes, by this

13  section clarifies and confirms existing law with respect to

14  the tax exemption provided for herein.

15         Section 30.  This act shall take effect July 1, 1999,

16  except that sections 22 and 23 of this act shall take effect

17  July 1, 2000.

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