HB 1701

1
A bill to be entitled
2An act relating to aerospace; creating s. 196.1999, F.S.;
3providing for an exemption from ad valorem taxes for
4certain space laboratories and cargo carriers; creating
5ss. 331.501, 331.502, 331.503, 331.504, 331.505, 331.506,
6and 331.507, F.S.; providing a popular name; creating the
7Florida Aerospace Infrastructure Act; providing
8legislative findings and intent; providing definitions;
9creating the Florida Aerospace Infrastructure Investment
10Program within the Florida Aerospace Finance Corporation;
11providing purposes; providing for funding the program;
12requiring the corporation to administer the program;
13providing requirements; providing the corporation with
14investment authorizations, criteria, requirements, and
15limitations; creating the Independent Investment Committee
16within the corporation; providing purposes of the
17committee; providing for appointment of committee members
18and criteria; providing for terms; requiring members to
19serve without compensation; providing for per diem and
20travel expenses; providing committee responsibilities;
21specifying tax-exempt status of the corporation; exempting
22the corporation from all state and local taxes; providing
23an exception; requiring the corporation to prepare and
24submit annual reports; providing an effective date.
25
26Be It Enacted by the Legislature of the State of Florida:
27
28     Section 1.  Section 196.1999, Florida Statutes, is created
29to read:
30     196.1999  Space laboratories and cargo carriers
31exemption.--
32     (1)  Notwithstanding other provisions of this chapter,
33modules, pallets, racks, lockers, and their necessary associated
34hardware and subsystems owned by any person and intended for use
35as space laboratories launched into space aboard any private or
36government-developed launch vehicle for carrying passengers into
37space or for the primary purpose of conducting scientific
38research in space or for use as cargo carriers launched into
39space aboard any private or government-developed launch vehicle
40for the primary purpose of transporting personnel or storing
41cargo and payloads are deemed to carry out a scientific purpose
42and 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43     (2)  This section is repealed July 1, 2015.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,
45331.505, 331.506, and 331.507, Florida Statutes, are created to
46read:
47     331.501  Florida Aerospace Infrastructure Act; popular
48name.--Sections 331.501-331.507 may be cited as the "Florida
49Aerospace Infrastructure Act."
50     331.502  Legislative findings and intent.--The Legislature
51finds that there is a critical need for capital assistance to
52aerospace business expansion and economic development
53opportunities in this state, as well as enhancing the financing
54of needed new aerospace infrastructure in this state. The
55aerospace industry in this state could be assisted by a program
56established to invest in projects proposed by state and private
57sector entities which provide a clear economic benefit to the
58state and which support the growth of the employment and
59technology base of the aerospace industry in this state. It is
60the intention of the Legislature to provide much needed funding
61to support the growth of the aerospace industry and related high
62technology industry in this state.
63     331.503  Definitions.--For the purposes of ss. 331.501-
64331.501-331.507, the term:
65     (1)  "Aerospace industry" means the industry concerned with
66the design and manufacture of aircraft, rockets, missiles,
67spacecraft, satellites, space vehicles, space stations, or space
68facilities, or components thereof, and equipment, systems,
69facilities, simulators, programs, and activities related
70thereto.
71     (2)  "Board" means the governing board of the Florida
72Aerospace Finance Corporation.
73     (3)  "Committee" means the Independent Investment Committee
74created in s. 331.505 to provide investment recommendations to
75the corporation for implementation.
76     (4)  "Corporation" means the Florida Aerospace Finance
77Corporation created by s. 331.407.
78     (5)  "Dealer" means an entity conducting business at a
79fixed location at the Kennedy Space Center or the Cape Canaveral
80Air Force Station that sells admissions to attractions or tours
81at such facility pursuant to a contract or subcontract with the
82National Aeronautics and Space Administration.
83     (6)  "Program" means the Florida Aerospace Infrastructure
84Program created in s. 331.504.
85     331.504  Florida Aerospace Infrastructure Program.--
86     (1)  The Florida Aerospace Infrastructure Program is
87created within the Florida Aerospace Finance Corporation to
88finance needed industry expansion and infrastructure projects
89which may be proposed by the state's space partnerships, the
90aerospace industry, or the sponsor of any aerospace-related
91economic development or technology investment activity involving
92aerospace business expansion and job retention. The program
93shall support the growth of the aerospace industry and related
94high technology industries in this state.
95     (2)  Grants from the Florida Aerospace Infrastructure
96Investment Trust Fund, if established by law, shall be used to
97fund the program.
98     (3)  The corporation shall administer the program with
99recommendations from the committee, subject to adequate due
100diligence and adherence to investment policies and procedures of
101the corporation.
102     (4)  The corporation shall ensure that:
103     (a)  Investment recommendations are implemented in
104accordance with the board's policies and procedures.
105     (b)  An investment reserve account for future investment
106requirements is established to receive deposits from the Office
107of Tourism, Trade, and Economic Development.
108     (c)  The portfolio of the fund is monitored and a quarterly
109report is provided to the committee, the corporation, Enterprise
110Florida, Inc., and the Office of Tourism, Trade, and Economic
111Development.
112     (5)(a)  The corporation may provide direct loans, loan
113guarantees, direct grants for advancement of intellectual
114property, and other investment participation as necessary to
115ensure success of total financings undertaken.
116     (b)  Investment proposals may not be made for operating
117expenses for any state activity, but shall be directed to the
118development of aerospace infrastructure, technology, and
119intellectual property that advances the capabilities of the
120aerospace industry in this state.
121     (c)  The corporation shall seek co-investors in any
122investment transaction the corporation makes, ensuring that the
123corporation is not the sole investor in the transaction. The
124corporation may waive this provision if investment circumstances
125warrant such waiver.
126     (d)  The corporation shall not commit more than 20 percent
127of the funds in the investment pool to any single investment.
128     (e)  The corporation shall endeavor to leverage the
129investment pool through use of loan guarantee capabilities of
130the Small Business Administration and other state and federal
131guarantee sources.
132     (f)  The corporation shall be reimbursed for reasonable
133costs of investment and fund administration, including legal,
134accounting, and other costs necessary to carry out its
135responsibilities in conducting due diligence and which are not
136otherwise reimbursed by the companies seeking or receiving
137investment, as well as those administrative costs incurred by
138the corporation in providing administrative services to the
139committee.
140     (g)  The corporation may not pledge or represent that the
141corporation is authorized to pledge the full faith and credit of
142the state.
143     (h)  The corporation shall adopt policies and procedures
144necessary to carry out its responsibilities under ss. 331.501-
145331.507, particularly with respect to the fund's
146responsibilities in direct lending, loan support, or direct
147grant or capital investment for projects approved for support by
148the fund. These policies shall be adopted prior to the
149expenditure of funds from grants for the program by the Office
150of Tourism, Trade, and Economic Development.
151     (i)  The corporation shall develop an application and
152review process for investment proposals submitted for
153consideration by the committee.
154     (j)  The corporation shall ensure that the program is open
155to aerospace entities that are domiciled in this state or are
156establishing facilities and infrastructure in the state
157resulting in employment and economic benefit to this state.
158     331.505  Independent Investment Committee.--
159     (1)  The Independent Investment Committee is created within
160the Florida Aerospace Finance Corporation.
161     (2)  The purpose of the committee is to receive proposals
162from any of this state's space partnerships, entities involved
163in economic development activities, or Florida-based aerospace
164corporations to finance projects through the program, as well as
165to recommend criteria for investment proposals to be submitted
166to the committee, recommend evaluation criteria for the
167committee, and review and recommend investments to be made
168through the program by the corporation.
169     (3)(a)  The committee shall consist of five voting members
170as follows:
171     1.  One representative or designee appointed by each of the
172following:
173     a.  The board of supervisors of the Florida Space
174Authority.
175     b.  The board of directors of Enterprise Florida, Inc.
176     c.  The board of directors of the Florida Aerospace Finance
177Corporation.
178     2.  Two representatives of the aerospace industry appointed
179by the other three entities represented on the committee.
180     (b)  Each voting member shall serve a 3-year term and,
181except for the initial terms which shall begin upon appointment
182and terminate on June 30, 2008, shall begin on July 1. Members
183appointed pursuant to subparagraph (a)1. shall serve at the
184pleasure of the appointing authority. Members appointed pursuant
185to subparagraph (a)2. shall serve at the pleasure of the
186Governor. Initial appointments shall be made no later than 60
187days after July 1, 2005.
188     (c)  Persons appointed pursuant to paragraph (a), if
189employed full time by any entity that applies for financial
190support, must disclose their related interest and recuse
191themselves 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
194aerospace industry background.
195     (f)  Committee members shall serve without compensation but
196may be reimbursed for travel and per diem expenses in accordance
197with policies and procedures established by the corporation's
198board and s. 112.061, for reimbursement of necessary expenses in
199the performance of their duties, including attending board
200meetings and conducting board business.
201     (4)  The committee shall:
202     (a)  Review and recommend investments in projects proposed
203by state space partnerships, economic development organizations,
204and private sector entities which have a clear economic benefit
205to the state and which support growth of its aerospace industry
206employment and technology base as well as enhancing aerospace
207infrastructure projects in this state.
208     (b)  Review progress information reports resulting from
209projects approved for support by the corporation.
210     (c)  Recommend and assist the corporation to review, draft,
211and execute any and all contracts or other instruments necessary
212for the corporation to exercise its powers.
213     (d)  Recommend policies and procedures with respect to
214setting criteria for investment proposals to be submitted to the
215fund, evaluation criteria for the fund, monitoring requirements,
216and investment and approval guidelines for all investments to be
217made through the program.
218     (e)  Ensure that each proposed project is judged on the
219merit of the project, its perceived need, and the investment
220return, benefit, or overall value to the aerospace industry
221capability in this state.
222     (f)  Assess, as part of its recommendation process, whether
223investment returns or value and capital preservation objectives
224exist for each recommended investment.
225     (g)  Review whether appropriate investment and retention of
226the program's capital base or other benefits are realized
227through the investments of the program, except in the case of a
228grant or equity investment, which shall be made based on value
229received by the program.
230     331.506  Florida Aerospace Finance Corporation; tax-exempt
231status.--The Florida Aerospace Finance Corporation, as created
232by s. 331.407, is granted tax-exempt status. The corporation is
233not required to pay taxes on any project or other property owned
234by the corporation or upon any resulting income. All notes,
235mortgages, security agreements, letters of credit, or other
236instruments that arise out of or are given to secure the payment
237of debt issued in conjunction with a project financed under the
238corporation's authority are also free from taxation by the state
239or any other local unit, political subdivision, or
240instrumentality of the state. The tax exemption granted is not
241applicable to taxes imposed on interest, income, or profits on
242debt obligations owned by the corporation.
243     331.507  Annual report.--By December 31 of each year, the
244corporation shall submit to the Governor, the President of the
245Senate, the Speaker of the House of Representatives, the Senate
246Minority Leader, and the House Minority Leader a complete and
247detailed report in accordance with s. 331.419 and setting forth:
248     (1)  An evaluation of its activities and recommendations
249for change.
250     (2)  The program's impact on the participation of private
251banks and other private organizations and individuals in the
252corporation's financing programs, and other economic and social
253benefits to businesses in this state.
254     (3)  The program's assets and liabilities at the end of its
255most recent fiscal year.
256     Section 3.  This act shall take effect July 1, 2005.


CODING: Words stricken are deletions; words underlined are additions.