Senate Bill sb1154c1

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    Florida Senate - 2005                           CS for SB 1154

    By the Committee on Commerce and Consumer Services; and
    Senator Dockery




    577-1843-05

  1                      A bill to be entitled

  2         An act relating to Enterprise Florida, Inc.;

  3         amending s. 288.041, F.S.; deleting the

  4         requirement that Enterprise Florida, Inc.,

  5         assist in the expansion of the solar energy

  6         industry and solar technology; amending s.

  7         288.095, F.S.; deleting obsolete provisions;

  8         repealing s. 288.8155, F.S., relating to the

  9         International Trade Data Resource and Research

10         Center; amending s. 288.901, F.S.; revising the

11         membership, organization, and meetings of the

12         board of directors of Enterprise Florida, Inc.;

13         amending s. 288.9015, F.S.; deleting obsolete

14         provisions regarding the Workforce Development

15         Board of Enterprise Florida, Inc.; amending s.

16         288.90151, F.S.; deleting obsolete provisions;

17         specifying moneys and contributions that may be

18         considered as private-sector support to

19         Enterprise Florida, Inc.; requiring that the

20         annual report include a study; clarifying the

21         term "economic development organization";

22         requiring Enterprise Florida, Inc. to hire

23         certain firms to develop certain survey

24         reporting; deleting a requirement that the

25         annual report be certified; amending s.

26         288.904, F.S.; revising the power of the board

27         to make and enter into contracts; providing

28         that certain limitations do not apply to

29         contracts awarded by another entity; providing

30         an effective date.

31  

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    Florida Senate - 2005                           CS for SB 1154
    577-1843-05




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

 2  

 3         Section 1.  Section 288.041, Florida Statutes, is

 4  amended to read:

 5         288.041  Solar energy industry; legislative findings

 6  and policy; promotional activities.--

 7         (1)  It is hereby found and declared that:

 8         (a)  The solar energy industry in this state has been a

 9  leader in the nation in the manufacture, supply, and delivery

10  of solar energy systems.

11         (b)  The use of solar energy in this state has been

12  demonstrated to save conventional energy sources.

13         (c)  The solar energy industry offers the prospect for

14  improved economic welfare of this state through creation of

15  jobs, increased energy security, and enhancing the quality of

16  the environment of this state.

17         (d)  Through helping to provide for a clean environment

18  and healthy economy, the solar energy industry contributes to

19  the continued growth and development of the tourist industry

20  of this state.

21         (2)  It is the policy of this state to promote,

22  stimulate, develop, and advance the growth of the solar energy

23  industry in this state.

24         (3)  Enterprise Florida, Inc., and its boards shall

25  assist in the expansion of the solar energy industry in this

26  state.  Such efforts shall be undertaken in cooperation with

27  the Department of Environmental Protection, the Florida Solar

28  Energy Center, and the Florida Solar Energy Industries

29  Association, and shall include:

30         (a)  Providing assistance and support to new and

31  existing photovoltaic companies, with special emphasis on

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    Florida Senate - 2005                           CS for SB 1154
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 1  attracting one or more manufacturers of photovoltaic products

 2  to locate within this state.

 3         (b)  Sponsoring initiatives which aid and take full

 4  advantage of the export market potential of solar

 5  technologies.

 6         (c)  Informing the business sector of this state about

 7  opportunities for cost-effective commercial applications of

 8  solar technologies.

 9         (d)  Encouraging employment of residents of this state

10  by solar energy companies.

11         (e)  Retaining existing solar energy companies and

12  supporting their expansion efforts in this state.

13         (f)  Supporting the promotion of solar energy by

14  sponsoring workshops, seminars, conferences, and educational

15  programs on the benefits of solar energy.

16         (g)  Recognizing outstanding developments and

17  achievements in, and contributions to, the solar energy

18  industry.

19         (h)  Collecting and disseminating solar energy

20  information relevant to the promotion of solar energy

21  applications.

22         (i)  Enlisting the support of persons, civic groups,

23  the solar energy industry, and other organizations to promote

24  and improve solar energy products and services.

25         (4)  The department shall also promote projects that

26  demonstrate viable applications of solar technology which may

27  include, but shall not be limited to: irrigation and stock

28  watering, process heat for dairy and citrus operations,

29  aquaculture, hydroponics, horticulture, waste detoxification,

30  and other means of meeting the energy needs of the

31  agricultural industry.

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    Florida Senate - 2005                           CS for SB 1154
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 1         (3)(5)  By January 15 of each year, the Department of

 2  Environmental Protection shall report to the Governor, the

 3  President of the Senate, and the Speaker of the House of

 4  Representatives on the impact of the solar energy industry on

 5  the economy of this state and shall make any recommendations

 6  on initiatives to further promote the solar energy industry as

 7  the department deems appropriate.

 8         Section 2.  Paragraph (c) of subsection (3) of section

 9  288.095, Florida Statutes, is amended to read:

10         288.095  Economic Development Trust Fund.--

11         (3)

12         (c)  By December 31 of each year, Enterprise Florida,

13  Inc., shall submit a complete and detailed report to the

14  Governor, the President of the Senate, the Speaker of the

15  House of Representatives, and the director of the Office of

16  Tourism, Trade, and Economic Development of all applications

17  received, recommendations made to the Office of Tourism,

18  Trade, and Economic Development, final decisions issued, tax

19  refund agreements executed, and tax refunds paid or other

20  payments made under all programs funded out of the Economic

21  Development Incentives Account, including analyses of benefits

22  and costs, types of projects supported, and employment and

23  investment created. Enterprise Florida, Inc., shall also

24  include a separate analysis of the impact of such tax refunds

25  on state enterprise zones designated pursuant to s. 290.0065,

26  rural communities, brownfield areas, and distressed urban

27  communities. The report must discuss whether the authority and

28  moneys appropriated by the Legislature to the Economic

29  Development Incentives Account were managed and expended in a

30  prudent, fiducially sound manner. The Office of Tourism,

31  Trade, and Economic Development shall assist Enterprise

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    Florida Senate - 2005                           CS for SB 1154
    577-1843-05




 1  Florida, Inc., in the collection of data related to business

 2  performance and incentive payments.

 3         Section 3.  Section 288.8155, Florida Statutes, is

 4  repealed.

 5         Section 4.  Subsections (7), (8), and (11) of section

 6  288.901, Florida Statutes, are amended to read:

 7         288.901  Enterprise Florida, Inc.; creation;

 8  membership; organization; meetings; disclosure.--

 9         (7)  The Governor shall serve as chairperson of the

10  board of directors.  The board of directors shall biennially

11  elect one of its appointive members as vice chairperson. The

12  president shall keep a record of the proceedings of the board

13  of directors and is the custodian of all books, documents, and

14  papers filed with the board of directors, the minutes of the

15  board of directors, and the official seal of Enterprise

16  Florida, Inc.

17         (8)  The board of directors shall meet at least four

18  times each year, upon the call of the chairperson, at the

19  request of the vice chairperson, or at the request of a

20  majority of the membership.  A majority of the total number of

21  current voting all directors fixed by subsection (3) shall

22  constitute a quorum.  The board of directors may take official

23  action by a majority vote of the members present at any

24  meeting at which a quorum is present.

25         (11)  Notwithstanding the provisions of subsection (3),

26  the board of directors may by resolution appoint at-large

27  members to the board from the private sector, each of whom may

28  serve a 1-year term of up to 3 years. At-large members shall

29  have the powers and duties of other members of the board,

30  except that they may not serve on an executive committee. An

31  at-large member is eligible for reappointment but may not vote

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    Florida Senate - 2005                           CS for SB 1154
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 1  on his or her own reappointment.  An at-large member shall be

 2  eligible to fill vacancies occurring among private-sector

 3  appointees under subsection (3).

 4         Section 5.  Section 288.9015, Florida Statutes, is

 5  amended to read:

 6         288.9015  Enterprise Florida, Inc.; purpose; duties.--

 7         (1)  Enterprise Florida, Inc., is the principal

 8  economic development organization for the state.  It shall be

 9  the responsibility of Enterprise Florida, Inc., to provide

10  leadership for business development in Florida by aggressively

11  establishing a unified approach to Florida's efforts of

12  international trade and reverse investment; by aggressively

13  marketing the state as a probusiness location for potential

14  new investment; and by aggressively assisting in the retention

15  and expansion of existing businesses and the creation of new

16  businesses. In support of this effort, Enterprise Florida,

17  Inc., may develop and implement specific programs or

18  strategies that address the creation, expansion, and retention

19  of Florida business; the development of import and export

20  trade; and the recruitment of worldwide business.

21         (2)  It shall be the responsibility of Enterprise

22  Florida, Inc., to aggressively market Florida's rural

23  communities, distressed urban communities, and enterprise

24  zones as locations for potential new investment, to

25  aggressively assist in the retention and expansion of existing

26  businesses in these communities, and to aggressively assist

27  these communities in the identification and development of new

28  economic development opportunities for job creation, fully

29  marketing state incentive programs such as the Qualified

30  Target Industry Tax Refund Program under s. 288.106 and the

31  

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    Florida Senate - 2005                           CS for SB 1154
    577-1843-05




 1  Quick Action Closing Fund under s. 288.1088 in economically

 2  distressed areas.

 3         (3)  It shall be the responsibility of Enterprise

 4  Florida, Inc., through the Workforce Development Board, to

 5  develop a comprehensive approach to workforce development that

 6  will result in better employment opportunities for the

 7  residents of this state. Such comprehensive approach must

 8  include:

 9         (a)  Creating and maintaining a highly skilled

10  workforce that is capable of responding to rapidly changing

11  technology and diversified market opportunities.

12         (b)  Training, educating, and assisting target

13  populations, such as those who are economically disadvantaged

14  or who participate in the WAGES Program or otherwise receive

15  public assistance to become independent, self-reliant, and

16  self-sufficient. This approach must ensure the effective use

17  of federal, state, local, and private resources in reducing

18  the need for public assistance.

19         (3)(4)  It shall be the responsibility of Enterprise

20  Florida, Inc., to assess, on an ongoing basis, Florida's

21  economic development competitiveness as measured against other

22  business locations, to identify and regularly reevaluate

23  Florida's economic development strengths and weaknesses, and

24  to incorporate such information into the strategic planning

25  process under s. 288.904.

26         (4)(5)  Enterprise Florida, Inc., shall incorporate the

27  needs of small and minority businesses into the

28  economic-development, international-trade and

29  reverse-investment, and workforce-development responsibilities

30  assigned to the organization by this section. Where

31  practicable and consistent with the expertise of the Black

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    Florida Senate - 2005                           CS for SB 1154
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 1  Business Investment Board, Inc., Enterprise Florida, Inc.,

 2  shall contract with the corporation for the delivery of

 3  services in fulfillment of the responsibilities of Enterprise

 4  Florida, Inc., relating to small and minority businesses.

 5         (5)(6)  Enterprise Florida, Inc., shall not endorse any

 6  candidate for any elected public office, nor shall it

 7  contribute moneys to the campaign of any such candidate.

 8         (6)(7)  As part of its business development and

 9  marketing responsibilities, Enterprise Florida, Inc., shall

10  prepare a business guide and checklist that contains basic

11  information on the federal, state, and local requirements for

12  starting and operating a business in this state. The guide and

13  checklist must describe how additional information can be

14  obtained on any such requirements and shall include, to the

15  extent feasible, the names, addresses, and telephone numbers

16  of appropriate government agency representatives. The guide

17  and checklist must also contain information useful to persons

18  who may be starting a business for the first time, including,

19  but not limited to, information on business structure,

20  financing, and planning.

21         Section 6.  Section 288.90151, Florida Statutes, is

22  amended to read:

23         288.90151  Return on investment from activities of

24  Enterprise Florida, Inc.--

25         (1)  The public funds appropriated each year for the

26  operation of Enterprise Florida, Inc., are invested in this

27  public-private partnership to enhance international trade and

28  economic development, to spur job-creating investments, and to

29  create new employment opportunities for Floridians, and to

30  prepare Floridians for those jobs.  This policy will be the

31  

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    Florida Senate - 2005                           CS for SB 1154
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 1  Legislature's priority consideration when reviewing the

 2  return-on-investment for Enterprise Florida, Inc.

 3         (2)  It is also the intent of the Legislature that

 4  Enterprise Florida, Inc., coordinate its operations with local

 5  economic-development organizations to maximize the state and

 6  local return-on-investment to create jobs for Floridians.

 7         (3)  It is further the intent of the Legislature to

 8  maximize private-sector support in operating Enterprise

 9  Florida, Inc., as an endorsement of its value and as an

10  enhancement of its efforts.

11         (4)(a)  The state's operating investment in Enterprise

12  Florida, Inc., is the budget contracted by the Office of

13  Tourism, Trade, and Economic Development to Enterprise

14  Florida, Inc., less funding that is directed by the

15  Legislature to be subcontracted to a specific recipient.

16         (b)  The board of directors of Enterprise Florida,

17  Inc., shall adopt for each upcoming fiscal year an operating

18  budget for the organization that specifies the intended uses

19  of the state's operating investment and a plan for securing

20  private-sector support to Enterprise Florida, Inc. Each fiscal

21  year private-sector support to Enterprise Florida, Inc., shall

22  equal no less than 100 percent of the state's operating

23  investment, including at least $1 million in cash as defined

24  in paragraph (5)(a), and an additional $400,000 in cash as

25  defined in paragraphs (5)(a), (b), and (c).

26         (5)  Private-sector support in operating Enterprise

27  Florida, Inc., includes:

28         (a)  Cash given directly to Enterprise Florida, Inc.,

29  for its operations, excluding contributions from grantees or

30  companies having contracts with Enterprise Florida, Inc.,

31  which represent more than 5 percent of the value of all

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    Florida Senate - 2005                           CS for SB 1154
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 1  contracts with Enterprise Florida, Inc., exclusive of grants,

 2  or more than 5 percent of the company's revenues. Cash in this

 3  category is not subject to restrictions on the use of

 4  appropriated funds operating budget;

 5         (b)  Cash jointly raised by Enterprise Florida, Inc.,

 6  and a local economic development organization, a group of such

 7  organizations, or a statewide business organization that

 8  supports collaborative projects;

 9         (c)  Cash generated by fees charged for products or

10  services of Enterprise Florida, Inc., and by sponsorship of

11  events, missions, programs, and publications; and

12         (d)  In-kind contributions directly to Enterprise

13  Florida, Inc., including: business expenditures; business

14  services provided; business support; or other business

15  contributions that augment the operations, program,

16  activities, or assets of Enterprise Florida, Inc., including,

17  but not limited to:  an individual's time and expertise;

18  sponsored publications; private-sector staff services; payment

19  for advertising placements; sponsorship of events; sponsored

20  or joint research; discounts on leases or purchases; mission

21  or program sponsorship; and copayments, stock, warrants,

22  royalties, or other private resources dedicated to Enterprise

23  Florida, Inc.

24         (6)  Enterprise Florida, Inc., shall fully comply with

25  the performance measures, standards, and sanctions in its

26  contracts with the Office of Tourism, Trade, and Economic

27  Development under s. 14.2015(2)(h) and (7).  The Office of

28  Tourism, Trade, and Economic Development shall ensure, to the

29  maximum extent possible, that the contract performance

30  measures are consistent with performance measures that the

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    Florida Senate - 2005                           CS for SB 1154
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 1  office is required to develop and track under

 2  performance-based program budgeting.

 3         (7)  As part of the annual report required under s.

 4  288.906, Enterprise Florida, Inc., shall provide the

 5  Legislature with information quantifying the public's

 6  return-on-investment as described in this section for fiscal

 7  year 1997-1998 and each subsequent fiscal year.  The annual

 8  report shall also include the results of a

 9  customer-satisfaction survey of businesses served, as well as

10  the lead economic development staff person of each

11  organization that is a primary partner local economic

12  development organization that employs a full-time or part-time

13  staff person.

14         (8)  Enterprise Florida, Inc., in consultation with the

15  Office of Program Policy Analysis and Government

16  Accountability, shall hire an economic-analysis a private

17  accounting firm to develop the methodology for establishing

18  and reporting return-on-investment and in-kind contributions

19  as described in this section and shall hire a firm experienced

20  in survey research to develop, analyze, and report on the

21  results of the customer-satisfaction survey. The Office of

22  Program Policy Analysis and Government Accountability shall

23  review and offer feedback on the methodology before it is

24  implemented. The private accounting firm shall certify whether

25  the applicable statements in the annual report comply with

26  this subsection.

27         Section 7.  Paragraph (b) of subsection (1) of section

28  288.904, Florida Statutes, is amended to read:

29         288.904  Powers of the board of directors of Enterprise

30  Florida, Inc.--

31  

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    Florida Senate - 2005                           CS for SB 1154
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 1         (1)  The board of directors of Enterprise Florida,

 2  Inc., shall have the power to:

 3         (b)1.  Make and enter into contracts and other

 4  instruments necessary or convenient for the exercise of its

 5  powers and functions, except that any contract made with an

 6  organization represented on the board of directors which

 7  exceeds $100,000, must be approved by a two-thirds vote of the

 8  entire board members in attendance at a meeting where a quorum

 9  is present of directors, and the board member representing

10  such organization shall abstain from voting. No more than 65

11  percent of the dollar value of all contracts or other

12  agreements entered into in any fiscal year, exclusive of grant

13  programs, shall be made with an organization represented on

14  the board of directors. This section does not apply to a

15  contract awarded by another entity to an organization

16  represented on the board of directors or to a contract in

17  which Enterprise Florida, Inc., is the recipient of funds from

18  an organization represented on the board of directors. An

19  organization represented on the board may not enter into a

20  contract to receive a state-funded economic development

21  incentive or similar grant, unless such incentive award is

22  specifically endorsed by a two-thirds vote of the entire

23  board. The board member representing such organization, if

24  applicable, shall abstain from voting and refrain from

25  discussing the issue with other members of the board. No more

26  than 50 percent of the dollar value of grants issued by the

27  board in any fiscal year may go to businesses associated with

28  board members.

29         2.  A contract that Enterprise Florida, Inc., executes

30  with a person or organization under which such person or

31  organization agrees to perform economic development services

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    Florida Senate - 2005                           CS for SB 1154
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 1  or similar business assistance services on behalf of

 2  Enterprise Florida, Inc., or on behalf of the state must

 3  include provisions requiring that such person or organization

 4  report on performance, account for proper use of funds

 5  provided under the contract, coordinate with other components

 6  of state and local economic development systems, and avoid

 7  duplication of existing state and local services and

 8  activities.

 9         Section 8.  This act shall take effect upon becoming a

10  law.

11  

12          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
13                         Senate Bill 1154

14                                 

15  The committee substitute differs from the bill in that it:

16  --   Restores to current law the provision that matching funds
         received under the Quick Response Training Program may
17       count toward the private sector support of Enterprise
         Florida, Inc.;
18  
    --   Restores to current law the requirement that private
19       sector support equal no less than 100 percent of the
         state's operating investment;
20  
    --   Restores to current law the provision that includes
21       in-kind contributions as private sector support to
         Enterprise Florida, Inc.;
22  
    --   Restores to current law a provision that prohibits any
23       employee of Enterprise Florida, Inc., from receiving a
         salary that exceeds the Governor's salary unless the
24       board of directors and the employee have a performance
         based contract that allows for incentive payments;
25  
    --   Provides that any contract made with an organization
26       represented on the board of directors that exceeds
         $100,000 must be approved by a two-thirds vote of the
27       board members in attendance where a quorum is present;
         and
28  
    --   Restores to current law a restriction that prohibits any
29       employee whose salary is paid from funds appropriated by
         the Legislature from receiving a pay raise or bonus that
30       is received by similarly situated employees.

31  

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