| 1 | A bill to be entitled | 
| 2 | An act relating to aerospace; creating s. 196.1999, F.S.; | 
| 3 | providing for an exemption from ad valorem taxes for | 
| 4 | certain space laboratories and cargo carriers; creating | 
| 5 | ss. 331.501, 331.502, 331.503, 331.504, 331.505, 331.506, | 
| 6 | and 331.507, F.S.; providing a popular name; creating the | 
| 7 | Florida Aerospace Infrastructure Act; providing | 
| 8 | legislative findings and intent; providing definitions; | 
| 9 | creating the Florida Aerospace Infrastructure Investment | 
| 10 | Program within the Florida Aerospace Finance Corporation; | 
| 11 | providing purposes; providing for funding the program; | 
| 12 | requiring the corporation to administer the program; | 
| 13 | providing requirements; providing the corporation with | 
| 14 | investment authorizations, criteria, requirements, and | 
| 15 | limitations; creating the Independent Investment Committee | 
| 16 | within the corporation; providing purposes of the | 
| 17 | committee; providing for appointment of committee members | 
| 18 | and criteria; providing for terms; requiring members to | 
| 19 | serve without compensation; providing for per diem and | 
| 20 | travel expenses; providing committee responsibilities; | 
| 21 | specifying tax-exempt status of the corporation; exempting | 
| 22 | the corporation from all state and local taxes; providing | 
| 23 | an exception; requiring the corporation to prepare and | 
| 24 | submit annual reports; providing an effective date. | 
| 25 | 
 | 
| 26 | Be It Enacted by the Legislature of the State of Florida: | 
| 27 | 
 | 
| 28 | Section 1.  Section 196.1999, Florida Statutes, is created | 
| 29 | to read: | 
| 30 | 196.1999  Space laboratories and cargo carriers | 
| 31 | exemption.-- | 
| 32 | (1)  Notwithstanding other provisions of this chapter, | 
| 33 | modules, pallets, racks, lockers, and their necessary associated | 
| 34 | hardware and subsystems owned by any person and intended for use | 
| 35 | as space laboratories launched into space aboard any private or | 
| 36 | government-developed launch vehicle for carrying passengers into | 
| 37 | space or for the primary purpose of conducting scientific | 
| 38 | research in space or for use as cargo carriers launched into | 
| 39 | space aboard any private or government-developed launch vehicle | 
| 40 | for the primary purpose of transporting personnel or storing | 
| 41 | cargo and payloads are deemed to carry out a scientific purpose | 
| 42 | and are exempt from ad valorem taxation. | 
| 43 | (2)  This section is repealed July 1, 2015. | 
| 44 | Section 2.  Sections 331.501, 331.502, 331.503, 331.504, | 
| 45 | 331.505, 331.506, and 331.507, Florida Statutes, are created to | 
| 46 | read: | 
| 47 | 331.501  Florida Aerospace Infrastructure Act; popular | 
| 48 | name.--Sections 331.501-331.507 may be cited as the "Florida | 
| 49 | Aerospace Infrastructure Act." | 
| 50 | 331.502  Legislative findings and intent.--The Legislature | 
| 51 | finds that there is a critical need for capital assistance to | 
| 52 | aerospace business expansion and economic development | 
| 53 | opportunities in this state, as well as enhancing the financing | 
| 54 | of needed new aerospace infrastructure in this state. The | 
| 55 | aerospace industry in this state could be assisted by a program | 
| 56 | established to invest in projects proposed by state and private | 
| 57 | sector entities which provide a clear economic benefit to the | 
| 58 | state and which support the growth of the employment and | 
| 59 | technology base of the aerospace industry in this state. It is | 
| 60 | the intention of the Legislature to provide much needed funding | 
| 61 | to support the growth of the aerospace industry and related high | 
| 62 | technology industry in this state. | 
| 63 | 331.503  Definitions.--For the purposes of ss. 331.501- | 
| 64 | 331.501-331.507, the term: | 
| 65 | (1)  "Aerospace industry" means the industry concerned with | 
| 66 | the design and manufacture of aircraft, rockets, missiles, | 
| 67 | spacecraft, satellites, space vehicles, space stations, or space | 
| 68 | facilities, or components thereof, and equipment, systems, | 
| 69 | facilities, simulators, programs, and activities related | 
| 70 | thereto. | 
| 71 | (2)  "Board" means the governing board of the Florida | 
| 72 | Aerospace Finance Corporation. | 
| 73 | (3)  "Committee" means the Independent Investment Committee | 
| 74 | created in s. 331.505 to provide investment recommendations to | 
| 75 | the corporation for implementation. | 
| 76 | (4)  "Corporation" means the Florida Aerospace Finance | 
| 77 | Corporation created by s. 331.407. | 
| 78 | (5)  "Dealer" means an entity conducting business at a | 
| 79 | fixed location at the Kennedy Space Center or the Cape Canaveral | 
| 80 | Air Force Station that sells admissions to attractions or tours | 
| 81 | at such facility pursuant to a contract or subcontract with the | 
| 82 | National Aeronautics and Space Administration. | 
| 83 | (6)  "Program" means the Florida Aerospace Infrastructure | 
| 84 | Program created in s. 331.504. | 
| 85 | 331.504  Florida Aerospace Infrastructure Program.-- | 
| 86 | (1)  The Florida Aerospace Infrastructure Program is | 
| 87 | created within the Florida Aerospace Finance Corporation to | 
| 88 | finance needed industry expansion and infrastructure projects | 
| 89 | which may be proposed by the state's space partnerships, the | 
| 90 | aerospace industry, or the sponsor of any aerospace-related | 
| 91 | economic development or technology investment activity involving | 
| 92 | aerospace business expansion and job retention. The program | 
| 93 | shall support the growth of the aerospace industry and related | 
| 94 | high technology industries in this state. | 
| 95 | (2)  Grants from the Florida Aerospace Infrastructure | 
| 96 | Investment Trust Fund, if established by law, shall be used to | 
| 97 | fund the program. | 
| 98 | (3)  The corporation shall administer the program with | 
| 99 | recommendations from the committee, subject to adequate due | 
| 100 | diligence and adherence to investment policies and procedures of | 
| 101 | the corporation. | 
| 102 | (4)  The corporation shall ensure that: | 
| 103 | (a)  Investment recommendations are implemented in | 
| 104 | accordance with the board's policies and procedures. | 
| 105 | (b)  An investment reserve account for future investment | 
| 106 | requirements is established to receive deposits from the Office | 
| 107 | of Tourism, Trade, and Economic Development. | 
| 108 | (c)  The portfolio of the fund is monitored and a quarterly | 
| 109 | report is provided to the committee, the corporation, Enterprise | 
| 110 | Florida, Inc., and the Office of Tourism, Trade, and Economic | 
| 111 | Development. | 
| 112 | (5)(a)  The corporation may provide direct loans, loan | 
| 113 | guarantees, direct grants for advancement of intellectual | 
| 114 | property, and other investment participation as necessary to | 
| 115 | ensure success of total financings undertaken. | 
| 116 | (b)  Investment proposals may not be made for operating | 
| 117 | expenses for any state activity, but shall be directed to the | 
| 118 | development of aerospace infrastructure, technology, and | 
| 119 | intellectual property that advances the capabilities of the | 
| 120 | aerospace industry in this state. | 
| 121 | (c)  The corporation shall seek co-investors in any | 
| 122 | investment transaction the corporation makes, ensuring that the | 
| 123 | corporation is not the sole investor in the transaction. The | 
| 124 | corporation may waive this provision if investment circumstances | 
| 125 | warrant such waiver. | 
| 126 | (d)  The corporation shall not commit more than 20 percent | 
| 127 | of the funds in the investment pool to any single investment. | 
| 128 | (e)  The corporation shall endeavor to leverage the | 
| 129 | investment pool through use of loan guarantee capabilities of | 
| 130 | the Small Business Administration and other state and federal | 
| 131 | guarantee sources. | 
| 132 | (f)  The corporation shall be reimbursed for reasonable | 
| 133 | costs of investment and fund administration, including legal, | 
| 134 | accounting, and other costs necessary to carry out its | 
| 135 | responsibilities in conducting due diligence and which are not | 
| 136 | otherwise reimbursed by the companies seeking or receiving | 
| 137 | investment, as well as those administrative costs incurred by | 
| 138 | the corporation in providing administrative services to the | 
| 139 | committee. | 
| 140 | (g)  The corporation may not pledge or represent that the | 
| 141 | corporation is authorized to pledge the full faith and credit of | 
| 142 | the state. | 
| 143 | (h)  The corporation shall adopt policies and procedures | 
| 144 | necessary to carry out its responsibilities under ss. 331.501- | 
| 145 | 331.507, particularly with respect to the fund's | 
| 146 | responsibilities in direct lending, loan support, or direct | 
| 147 | grant or capital investment for projects approved for support by | 
| 148 | the fund. These policies shall be adopted prior to the | 
| 149 | expenditure of funds from grants for the program by the Office | 
| 150 | of Tourism, Trade, and Economic Development. | 
| 151 | (i)  The corporation shall develop an application and | 
| 152 | review process for investment proposals submitted for | 
| 153 | consideration by the committee. | 
| 154 | (j)  The corporation shall ensure that the program is open | 
| 155 | to aerospace entities that are domiciled in this state or are | 
| 156 | establishing facilities and infrastructure in the state | 
| 157 | resulting in employment and economic benefit to this state. | 
| 158 | 331.505  Independent Investment Committee.-- | 
| 159 | (1)  The Independent Investment Committee is created within | 
| 160 | the Florida Aerospace Finance Corporation. | 
| 161 | (2)  The purpose of the committee is to receive proposals | 
| 162 | from any of this state's space partnerships, entities involved | 
| 163 | in economic development activities, or Florida-based aerospace | 
| 164 | corporations to finance projects through the program, as well as | 
| 165 | to recommend criteria for investment proposals to be submitted | 
| 166 | to the committee, recommend evaluation criteria for the | 
| 167 | committee, and review and recommend investments to be made | 
| 168 | through the program by the corporation. | 
| 169 | (3)(a)  The committee shall consist of five voting members | 
| 170 | as follows: | 
| 171 | 1.  One representative or designee appointed by each of the | 
| 172 | following: | 
| 173 | a.  The board of supervisors of the Florida Space | 
| 174 | Authority. | 
| 175 | b.  The board of directors of Enterprise Florida, Inc. | 
| 176 | c.  The board of directors of the Florida Aerospace Finance | 
| 177 | Corporation. | 
| 178 | 2.  Two representatives of the aerospace industry appointed | 
| 179 | by the other three entities represented on the committee. | 
| 180 | (b)  Each voting member shall serve a 3-year term and, | 
| 181 | except for the initial terms which shall begin upon appointment | 
| 182 | and terminate on June 30, 2008, shall begin on July 1. Members | 
| 183 | appointed pursuant to subparagraph (a)1. shall serve at the | 
| 184 | pleasure of the appointing authority. Members appointed pursuant | 
| 185 | to subparagraph (a)2. shall serve at the pleasure of the | 
| 186 | Governor. Initial appointments shall be made no later than 60 | 
| 187 | days after July 1, 2005. | 
| 188 | (c)  Persons appointed pursuant to paragraph (a), if | 
| 189 | employed full time by any entity that applies for financial | 
| 190 | support, must disclose their related interest and recuse | 
| 191 | themselves from voting on that project. | 
| 192 | (d)  All members must be residents of the state. | 
| 193 | (e)  All members must have an investment, banking, or | 
| 194 | aerospace industry background. | 
| 195 | (f)  Committee members shall serve without compensation but | 
| 196 | may be reimbursed for travel and per diem expenses in accordance | 
| 197 | with policies and procedures established by the corporation's | 
| 198 | board and s. 112.061, for reimbursement of necessary expenses in | 
| 199 | the performance of their duties, including attending board | 
| 200 | meetings and conducting board business. | 
| 201 | (4)  The committee shall: | 
| 202 | (a)  Review and recommend investments in projects proposed | 
| 203 | by state space partnerships, economic development organizations, | 
| 204 | and private sector entities which have a clear economic benefit | 
| 205 | to the state and which support growth of its aerospace industry | 
| 206 | employment and technology base as well as enhancing aerospace | 
| 207 | infrastructure projects in this state. | 
| 208 | (b)  Review progress information reports resulting from | 
| 209 | projects approved for support by the corporation. | 
| 210 | (c)  Recommend and assist the corporation to review, draft, | 
| 211 | and execute any and all contracts or other instruments necessary | 
| 212 | for the corporation to exercise its powers. | 
| 213 | (d)  Recommend policies and procedures with respect to | 
| 214 | setting criteria for investment proposals to be submitted to the | 
| 215 | fund, evaluation criteria for the fund, monitoring requirements, | 
| 216 | and investment and approval guidelines for all investments to be | 
| 217 | made through the program. | 
| 218 | (e)  Ensure that each proposed project is judged on the | 
| 219 | merit of the project, its perceived need, and the investment | 
| 220 | return, benefit, or overall value to the aerospace industry | 
| 221 | capability in this state. | 
| 222 | (f)  Assess, as part of its recommendation process, whether | 
| 223 | investment returns or value and capital preservation objectives | 
| 224 | exist for each recommended investment. | 
| 225 | (g)  Review whether appropriate investment and retention of | 
| 226 | the program's capital base or other benefits are realized | 
| 227 | through the investments of the program, except in the case of a | 
| 228 | grant or equity investment, which shall be made based on value | 
| 229 | received by the program. | 
| 230 | 331.506  Florida Aerospace Finance Corporation; tax-exempt | 
| 231 | status.--The Florida Aerospace Finance Corporation, as created | 
| 232 | by s. 331.407, is granted tax-exempt status. The corporation is | 
| 233 | not required to pay taxes on any project or other property owned | 
| 234 | by the corporation or upon any resulting income. All notes, | 
| 235 | mortgages, security agreements, letters of credit, or other | 
| 236 | instruments that arise out of or are given to secure the payment | 
| 237 | of debt issued in conjunction with a project financed under the | 
| 238 | corporation's authority are also free from taxation by the state | 
| 239 | or any other local unit, political subdivision, or | 
| 240 | instrumentality of the state. The tax exemption granted is not | 
| 241 | applicable to taxes imposed on interest, income, or profits on | 
| 242 | debt obligations owned by the corporation. | 
| 243 | 331.507  Annual report.--By December 31 of each year, the | 
| 244 | corporation shall submit to the Governor, the President of the | 
| 245 | Senate, the Speaker of the House of Representatives, the Senate | 
| 246 | Minority Leader, and the House Minority Leader a complete and | 
| 247 | detailed report in accordance with s. 331.419 and setting forth: | 
| 248 | (1)  An evaluation of its activities and recommendations | 
| 249 | for change. | 
| 250 | (2)  The program's impact on the participation of private | 
| 251 | banks and other private organizations and individuals in the | 
| 252 | corporation's financing programs, and other economic and social | 
| 253 | benefits to businesses in this state. | 
| 254 | (3)  The program's assets and liabilities at the end of its | 
| 255 | most recent fiscal year. | 
| 256 | Section 3.  This act shall take effect July 1, 2005. |