HB 1701CS

CHAMBER ACTION



1The Transportation & Economic Development Appropriations
2Committee recommends the following:
3
4     Council/Committee Substitute
5     Remove the entire bill and insert:
6
A bill to be entitled
7An act relating to aerospace; creating s. 196.1999, F.S.;
8providing for an exemption from ad valorem taxes for
9certain space laboratories and cargo carriers; providing
10for retroactive application; creating ss. 331.3685,
11331.3686, 331.3687, and 331.3688, F.S.; providing a
12popular name; providing legislative findings and intent;
13providing a definition; creating the Institute for
14Advanced Space Computing Program within the Office of
15Tourism, Trade, and Economic Development; providing
16purposes and objectives; requiring the office to contract
17with the Florida Space Research Institute to assist in
18implementing the program; requiring the institute to
19designate an institute for advanced space computing and
20develop and approve a plan for allocating state
21appropriations for certain purposes; specifying plan
22requirements; requiring the institute to provide a copy of
23the plan to the Governor and Legislature; requiring a
24semiannual report to the office; creating ss. 331.501,
25331.502, 331.503, 331.504, 331.505, 331.506, and 331.507,
26F.S.; providing a popular name; creating the Florida
27Aerospace Infrastructure Act; providing legislative
28findings and intent; providing definitions; creating the
29Florida Aerospace Infrastructure Investment Program within
30the Florida Aerospace Finance Corporation; providing
31purposes; providing for funding the program; requiring the
32corporation to administer the program; providing
33requirements; providing the corporation with investment
34authorizations, criteria, requirements, and limitations;
35creating the Independent Investment Committee within the
36corporation; providing purposes of the committee;
37providing for appointment of committee members and
38criteria; providing for terms; requiring members to serve
39without compensation; providing for per diem and travel
40expenses; providing committee responsibilities; specifying
41tax-exempt status of the corporation; exempting the
42corporation from all state and local taxes; providing an
43exception; requiring the corporation to prepare and submit
44annual reports; providing severability; providing
45effective dates.
46
47Be It Enacted by the Legislature of the State of Florida:
48
49     Section 1.  Effective July 1, 2005, and applying
50retroactively to January 1, 2005, section 196.1999, Florida
51Statutes, is created to read:
52     196.1999  Space laboratories and cargo carriers
53exemption.--Notwithstanding other provisions of this chapter,
54modules, pallets, racks, lockers, and their necessary associated
55hardware and subsystems owned by any person and intended to be
56used to transport or store cargo for space laboratories for the
57primary purpose of conducting scientific research in space are
58deemed to carry out a scientific purpose and are exempt from ad
59valorem taxation.
60     Section 2.  Sections 331.3685, 331.3686, 331.3687, and
61331.3688, Florida Statutes, are created to read:
62     331.3685  Institute for Advanced Space Computing Act;
63popular name.--Sections 331.3685-331.3688 may be cited as the
64"Institute for Advanced Space Computing Act."
65     331.3686  Legislative findings and intent.--The Legislature
66finds that there is a critical need to invest in the aerospace
67infrastructure in this state in order to provide new high wage
68jobs and long-term revenues for this state. The establishment of
69an advanced space computing institute to articulate, coordinate,
70and focus industrial and academic research will forge a path
71toward applied technology and on to job growth and economic
72development. The Legislature further finds that enhancing
73aerospace infrastructure and establishing a focused and market
74driven space computing capability for this state will lead to
75future economic development and diversification and a higher
76quality of life for its citizens.
77     331.3687  Institute for advanced space computing.--The term
78"institute for advanced space computing" or "institute" means an
79organization established at or in collaboration with one or more
80universities in this state to accomplish the purposes and
81objectives of the Institute for Advanced Space Computing Program
82of the Office of Tourism, Trade, and Economic Development and
83with which the Florida Space Research Institute has contracted
84to further those purposes and objectives.
85     331.3688  The Institute for Advanced Space Computing
86Program.--
87     (1)  An advanced space computing program is created within
88the Office of Tourism, Trade, and Economic Development. The
89purposes and objectives of the program are:
90     (a)  Identifying and pursuing opportunities for university
91scholars, research scientists and engineers, students, and
92private businesses to form collaborative partnerships to foster
93and promote the research required to develop commercially
94viable, advanced, and innovative technologies and to transfer
95those technologies to commercial sectors.
96     (b)  Acquiring and leveraging public and private sector
97funding to provide funds, personnel, facilities, equipment, and
98other resources needed to support the research required to
99develop commercially viable, advanced, and innovative
100technologies and to transfer those technologies to commercial
101sectors.
102     (c)  Retaining and recruiting world class scholars, high-
103performing students, and leading scientists and engineers in
104technology disciplines to engage in research in this state to
105develop commercially viable, advanced, and innovative
106technologies.
107     (d)  Enhancing and expanding technology curricula and
108laboratory resources at universities in this state.
109     (e)  Increasing the number of high-performing students in
110technology disciplines who graduate from universities in this
111state and pursue careers in this state.
112     (f)  Stimulating and supporting the inception, growth, and
113diversification of technology-based businesses and ventures in
114this state and increasing employment opportunities for the
115workforce needed to support such businesses.
116     (g)  Identifying an articulation and coordination system
117for space-based industries in this state, state government, and
118the public and private universities in this state to develop new
119technologies for the Federal Government and other entities that
120are responsive to market needs and to position the state to
121diversify its space and defense industry.
122     (h)  Positioning the state to participate in a growing
123national space and defense market through the development of
124technology that enhances mission capability, is responsive to
125market opportunities, and maintains emerging and embryonic
126research for long-term market positioning.
127     (2)  The Office of Tourism, Trade, and Economic Development
128shall contract with the Florida Space Research Institute to
129assist in implementing the advanced space computing program.
130     (3)  By December 31, 2005, the Florida Space Research
131Institute shall designate an institute for advanced space
132computing and develop and approve the institute's plan for
133allocating state appropriations made to fulfill the purposes of
134ss. 331.3685-331.3688.
135     (4)  The plan must include performance measures and
136accountability measures that can be used to assess the progress
137of program implementation, the success of the institute, and the
138use of funds received under the plan. By February 1, 2006, the
139Florida Space Research Institute shall provide a copy of the
140plan to the Governor, the President of the Senate, and the
141Speaker of the House of Representatives.
142     (5)  Beginning July 1, 2006, the Florida Space Research
143Institute shall report semiannually, in writing, to the Office
144of Tourism, Trade, and Economic Development on progress made in
145implementing the plan approved under subsection (3) and the
146success of the funded institute.
147     Section 3.  Sections 331.501, 331.502, 331.503, 331.504,
148331.505, 331.506, and 331.507, Florida Statutes, are created to
149read:
150     331.501  Florida Aerospace Infrastructure Act; popular
151name.--Sections 331.501-331.507 may be cited as the "Florida
152Aerospace Infrastructure Act."
153     331.502  Legislative findings and intent.--The Legislature
154finds that there is a critical need for capital assistance to
155aerospace business expansion and economic development
156opportunities in this state, as well as enhancing the financing
157of needed new aerospace infrastructure in this state. The
158aerospace industry in this state could be assisted by a program
159established to invest in projects proposed by state and private
160sector entities which provide a clear economic benefit to the
161state and which support the growth of the employment and
162technology base of the aerospace industry in this state. It is
163the intention of the Legislature to provide much needed funding
164to support the growth of the aerospace industry and related high
165technology industry in this state.
166     331.503  Definitions.--For the purposes of ss. 331.501-
167331.501-331.507, the term:
168     (1)  "Aerospace industry" means the industry concerned with
169the design and manufacture of aircraft, rockets, missiles,
170spacecraft, satellites, space vehicles, space stations, or space
171facilities, or components thereof, and equipment, systems,
172facilities, simulators, programs, and activities related
173thereto.
174     (2)  "Board" means the governing board of the Florida
175Aerospace Finance Corporation.
176     (3)  "Committee" means the Independent Investment Committee
177created in s. 331.505 to provide investment recommendations to
178the corporation for implementation.
179     (4)  "Corporation" means the Florida Aerospace Finance
180Corporation created by s. 331.407.
181     (5)  "Dealer" means an entity conducting business at a
182fixed location at the Kennedy Space Center or the Cape Canaveral
183Air Force Station that sells admissions to attractions or tours
184at such facility pursuant to a contract or subcontract with the
185National Aeronautics and Space Administration.
186     (6)  "Program" means the Florida Aerospace Infrastructure
187Program created in s. 331.504.
188     331.504  Florida Aerospace Infrastructure Program.--
189     (1)  The Florida Aerospace Infrastructure Program is
190created within the Florida Aerospace Finance Corporation to
191finance needed industry expansion and infrastructure projects
192which may be proposed by the state's space partnerships, the
193aerospace industry, or the sponsor of any aerospace-related
194economic development or technology investment activity involving
195aerospace business expansion and job retention. The program
196shall support the growth of the aerospace industry and related
197high technology industries in this state.
198     (2)  Grants from the Florida Aerospace Infrastructure
199Investment Trust Fund, if established by law, shall be used to
200fund the program.
201     (3)  The corporation shall administer the program with
202recommendations from the committee, subject to adequate due
203diligence and adherence to investment policies and procedures of
204the corporation.
205     (4)  The corporation shall ensure that:
206     (a)  Investment recommendations are implemented in
207accordance with the board's policies and procedures.
208     (b)  An investment reserve account for future investment
209requirements is established to receive deposits from the Office
210of Tourism, Trade, and Economic Development.
211     (c)  The portfolio of the fund is monitored and a quarterly
212report is provided to the committee, the corporation, Enterprise
213Florida, Inc., and the Office of Tourism, Trade, and Economic
214Development.
215     (5)(a)  The corporation may provide direct loans, loan
216guarantees, direct grants for advancement of intellectual
217property, and other investment participation as necessary to
218ensure success of total financings undertaken.
219     (b)  Investment proposals may not be made for operating
220expenses for any state activity, but shall be directed to the
221development of aerospace infrastructure, technology, and
222intellectual property that advances the capabilities of the
223aerospace industry in this state.
224     (c)  The corporation shall seek co-investors in any
225investment transaction the corporation makes, ensuring that the
226corporation is not the sole investor in the transaction. The
227corporation may waive this provision if investment circumstances
228warrant such waiver.
229     (d)  The corporation shall not commit more than 20 percent
230of the funds in the investment pool to any single investment.
231     (e)  The corporation shall endeavor to leverage the
232investment pool through use of loan guarantee capabilities of
233the Small Business Administration and other state and federal
234guarantee sources.
235     (f)  The corporation shall be reimbursed for reasonable
236costs of investment and fund administration, including legal,
237accounting, and other costs necessary to carry out its
238responsibilities in conducting due diligence and which are not
239otherwise reimbursed by the companies seeking or receiving
240investment, as well as those administrative costs incurred by
241the corporation in providing administrative services to the
242committee.
243     (g)  The corporation may not pledge or represent that the
244corporation is authorized to pledge the full faith and credit of
245the state.
246     (h)  The corporation shall adopt policies and procedures
247necessary to carry out its responsibilities under ss. 331.501-
248331.507, particularly with respect to the fund's
249responsibilities in direct lending, loan support, or direct
250grant or capital investment for projects approved for support by
251the fund. These policies shall be adopted prior to the
252expenditure of funds from grants for the program by the Office
253of Tourism, Trade, and Economic Development.
254     (i)  The corporation shall develop an application and
255review process for investment proposals submitted for
256consideration by the committee.
257     (j)  The corporation shall ensure that the program is open
258to aerospace entities that are domiciled in this state or are
259establishing facilities and infrastructure in the state
260resulting in employment and economic benefit to this state.
261     331.505  Independent Investment Committee.--
262     (1)  The Independent Investment Committee is created within
263the Florida Aerospace Finance Corporation.
264     (2)  The purpose of the committee is to receive proposals
265from any of this state's space partnerships, entities involved
266in economic development activities, or Florida-based aerospace
267corporations to finance projects through the program, as well as
268to recommend criteria for investment proposals to be submitted
269to the committee, recommend evaluation criteria for the
270committee, and review and recommend investments to be made
271through the program by the corporation.
272     (3)(a)  The committee shall consist of five voting members
273as follows:
274     1.  One representative or designee appointed by each of the
275following:
276     a.  The board of supervisors of the Florida Space
277Authority.
278     b.  The board of directors of Enterprise Florida, Inc.
279     c.  The board of directors of the Florida Aerospace Finance
280Corporation.
281     2.  Two representatives of the aerospace industry appointed
282by the other three entities represented on the committee.
283     (b)  Each voting member shall serve a 3-year term and,
284except for the initial terms which shall begin upon appointment
285and terminate on June 30, 2008, shall begin on July 1. Members
286appointed pursuant to subparagraph (a)1. shall serve at the
287pleasure of the appointing authority. Members appointed pursuant
288to subparagraph (a)2. shall serve at the pleasure of the
289Governor. Initial appointments shall be made no later than 60
290days after July 1, 2005.
291     (c)  Persons appointed pursuant to paragraph (a), if
292employed full time by any entity that applies for financial
293support, must disclose their related interest and recuse
294themselves from voting on that project.
295     (d)  All members must be residents of the state.
296     (e)  All members must have an investment, banking, or
297aerospace industry background.
298     (f)  Committee members shall serve without compensation but
299may be reimbursed for travel and per diem expenses in accordance
300with policies and procedures established by the corporation's
301board and s. 112.061, for reimbursement of necessary expenses in
302the performance of their duties, including attending board
303meetings and conducting board business.
304     (4)  The committee shall:
305     (a)  Review and recommend investments in projects proposed
306by state space partnerships, economic development organizations,
307and private sector entities which have a clear economic benefit
308to the state and which support growth of its aerospace industry
309employment and technology base as well as enhancing aerospace
310infrastructure projects in this state.
311     (b)  Review progress information reports resulting from
312projects approved for support by the corporation.
313     (c)  Recommend and assist the corporation to review, draft,
314and execute any and all contracts or other instruments necessary
315for the corporation to exercise its powers.
316     (d)  Recommend policies and procedures with respect to
317setting criteria for investment proposals to be submitted to the
318fund, evaluation criteria for the fund, monitoring requirements,
319and investment and approval guidelines for all investments to be
320made through the program.
321     (e)  Ensure that each proposed project is judged on the
322merit of the project, its perceived need, and the investment
323return, benefit, or overall value to the aerospace industry
324capability in this state.
325     (f)  Assess, as part of its recommendation process, whether
326investment returns or value and capital preservation objectives
327exist for each recommended investment.
328     (g)  Review whether appropriate investment and retention of
329the program's capital base or other benefits are realized
330through the investments of the program, except in the case of a
331grant or equity investment, which shall be made based on value
332received by the program.
333     331.506  Florida Aerospace Finance Corporation; tax-exempt
334status.--The Florida Aerospace Finance Corporation, as created
335by s. 331.407, is granted tax-exempt status. The corporation is
336not required to pay taxes on any project or other property owned
337by the corporation or upon any resulting income. All notes,
338mortgages, security agreements, letters of credit, or other
339instruments that arise out of or are given to secure the payment
340of debt issued in conjunction with a project financed under the
341corporation's authority are also free from taxation by the state
342or any other local unit, political subdivision, or
343instrumentality of the state. The tax exemption granted is not
344applicable to taxes imposed on interest, income, or profits on
345debt obligations owned by the corporation.
346     331.507  Annual report.--By December 31 of each year, the
347corporation shall submit to the Governor, the President of the
348Senate, the Speaker of the House of Representatives, the Senate
349Minority Leader, and the House Minority Leader a complete and
350detailed report in accordance with s. 331.419 and setting forth:
351     (1)  An evaluation of its activities and recommendations
352for change.
353     (2)  The program's impact on the participation of private
354banks and other private organizations and individuals in the
355corporation's financing programs, and other economic and social
356benefits to businesses in this state.
357     (3)  The program's assets and liabilities at the end of its
358most recent fiscal year.
359     Section 4.  If any provision of this act or its application
360to any person or circumstance is held invalid, the invalidity
361does not affect other provisions or applications of this act
362which can be given effect without the invalid provision or
363application, and, to this end, the provisions of this act are
364declared severable.
365     Section 5.  This act shall take effect July 1, 2005.


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