Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 1938
Barcode 862954
CHAMBER ACTION
Senate House
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11 The Committee on Commerce and Consumer Services (Saunders)
12 recommended the following amendment:
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14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
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17 and insert:
18 Section 1. Effective upon this act becoming a law and
19 applying retroactively to January 1, 2005, section 196.1999,
20 Florida Statutes, is created to read:
21 196.1999 Space laboratories and carriers
22 exemption.--Notwithstanding other provisions of this chapter,
23 a module, pallet, rack, locker, and any necessary associated
24 hardware and subsystem, owned by any person and intended to be
25 used to transport or store cargo used for a space laboratory
26 for the primary purpose of conducting scientific research in
27 space, is deemed to carry out a scientific purpose and is
28 exempt from ad valorem taxation.
29 Section 2. Section 196.1994, Florida Statutes, is
30 repealed.
31 Section 3. Sections 331.501, 331.502, 331.503,
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 1938
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1 331.504, 331.505, 331.506, and 331.507, Florida Statutes, are
2 created to read:
3 331.501 Florida Aerospace Infrastructure Act; popular
4 name.--Sections 331.501-331.507 may be cited as the "Florida
5 Aerospace Infrastructure Act."
6 331.502 Legislative findings and intent.--The
7 Legislature finds that there is a critical need for capital
8 assistance to aerospace business expansion and economic
9 development opportunities in this state, as well as enhancing
10 the financing of needed new aerospace infrastructure in this
11 state. The aerospace industry in this state could be assisted
12 by a program established to invest in projects proposed by
13 state and private sector entities which provide a clear
14 economic benefit to the state and which support the growth of
15 the employment and technology base of the aerospace industry
16 in this state. It is the intention of the Legislature to
17 provide much-needed funding to support the growth of the
18 aerospace industry and related high technology industry in
19 this state.
20 331.503 Definitions.--For the purposes of ss.
21 331.501-331.507, the term:
22 (1) "Aerospace industry" means the industry concerned
23 with the design and manufacture of aircraft, rockets,
24 missiles, spacecraft, satellites, space vehicles, space
25 stations, or space facilities, or components thereof, and
26 equipment, systems, facilities, simulators, programs, and
27 activities related thereto.
28 (2) "Board" means the governing board of the Florida
29 Aerospace Finance Corporation.
30 (3) "Committee" means the Independent Investment
31 Committee created in s. 331.505 to provide investment
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 1938
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1 recommendations to the corporation for implementation.
2 (4) "Corporation" means the Florida Aerospace Finance
3 Corporation created by s. 331.407.
4 (5) "Dealer" means an entity conducting business at a
5 fixed location at the Kennedy Space Center or the Cape
6 Canaveral Air Force Station that sells admissions to
7 attractions or tours at such facility pursuant to a contract
8 or subcontract with the National Aeronautics and Space
9 Administration.
10 (6) "Program" means the Florida Aerospace
11 Infrastructure Program created in s. 331.504.
12 331.504 Florida Aerospace Infrastructure Program.--
13 (1) The Florida Aerospace Infrastructure Program is
14 created within the Florida Aerospace Finance Corporation to
15 finance needed industry expansion and infrastructure projects
16 that may be proposed by the state's space partnerships, the
17 aerospace industry, or the sponsor of any aerospace-related
18 economic development or technology investment activity
19 involving aerospace business expansion and job retention. The
20 program shall support the growth of the aerospace industry and
21 related high-technology industries in this state.
22 (2) Grants from the Florida Aerospace Infrastructure
23 Investment Trust Fund, if established by law, shall be used to
24 fund the program.
25 (3) The corporation shall administer the program with
26 recommendations from the committee, subject to adequate due
27 diligence and adherence to investment policies and procedures
28 of the corporation.
29 (4) The corporation shall ensure that:
30 (a) Investment recommendations are implemented in
31 accordance with the board's policies and procedures.
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 1938
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1 (b) An investment reserve account for future
2 investment requirements is established to receive deposits
3 from the Office of Tourism, Trade, and Economic Development.
4 (c) The portfolio of the fund is monitored and a
5 quarterly report is provided to the committee, the
6 corporation, Enterprise Florida, Inc., and the Office of
7 Tourism, Trade, and Economic Development.
8 (5)(a) The corporation may provide direct loans, loan
9 guarantees, direct grants for advancement of intellectual
10 property, and other investment participation as necessary to
11 ensure success of total financings undertaken.
12 (b) Investment proposals may not be made for operating
13 expenses for any state activity, but shall be directed to the
14 development of aerospace infrastructure, technology, and
15 intellectual property that advances the capabilities of the
16 aerospace industry in this state.
17 (c) The corporation shall seek co-investors in any
18 investment transaction the corporation makes, ensuring that
19 the corporation is not the sole investor in the transaction.
20 The corporation may waive this provision if investment
21 circumstances warrant such waiver.
22 (d) The corporation shall not commit more than 20
23 percent of the funds in the investment pool to any single
24 investment.
25 (e) The corporation shall endeavor to leverage the
26 investment pool through use of loan guarantee capabilities of
27 the Small Business Administration and other state and federal
28 guarantee sources.
29 (f) The corporation shall be reimbursed for reasonable
30 costs of investment and fund administration, including legal,
31 accounting, and other costs necessary to carry out its
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 1938
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1 responsibilities in conducting due diligence and which are not
2 otherwise reimbursed by the companies seeking or receiving
3 investment, as well as those administrative costs incurred by
4 the corporation in providing administrative services to the
5 committee.
6 (g) The corporation may not pledge or represent that
7 the corporation is authorized to pledge the full faith and
8 credit of the state.
9 (h) The corporation shall adopt policies and
10 procedures necessary to carry out its responsibilities under
11 ss. 331.501-331.507, particularly with respect to the fund's
12 responsibilities in direct lending, loan support, or direct
13 grant or capital investment for projects approved for support
14 by the fund. These policies shall be adopted prior to the
15 expenditure of funds from grants for the program by the Office
16 of Tourism, Trade, and Economic Development.
17 (i) The corporation shall develop an application and
18 review process for investment proposals submitted for
19 consideration by the committee.
20 (j) The corporation shall ensure that the program is
21 open to aerospace entities that are domiciled in this state or
22 are establishing facilities and infrastructure in the state
23 resulting in employment and economic benefit to this state.
24 331.505 Independent Investment Committee.--
25 (1) The Independent Investment Committee is created
26 within the Florida Aerospace Finance Corporation.
27 (2) The purpose of the committee is to receive
28 proposals from any of this state's space partnerships,
29 entities involved in economic development activities, or
30 Florida-based aerospace corporations to finance projects
31 through the program, as well as to recommend criteria for
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Florida Senate - 2005 COMMITTEE AMENDMENT
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1 investment proposals to be submitted to the committee,
2 recommend evaluation criteria for the committee, and review
3 and recommend investments to be made through the program by
4 the corporation.
5 (3)(a) The committee shall consist of five voting
6 members as follows:
7 1. One representative or designee appointed by each of
8 the following:
9 a. The board of supervisors of the Florida Space
10 Authority.
11 b. The board of directors of Enterprise Florida, Inc.
12 c. The board of directors of the Florida Aerospace
13 Finance Corporation.
14 2. Two representatives of the aerospace industry
15 appointed by the other three entities represented on the
16 committee.
17 (b) Each voting member shall serve a 3-year term and,
18 except for the initial terms, which shall begin upon
19 appointment and terminate on June 30, 2008, shall begin on
20 July 1. Members appointed pursuant to subparagraph (a)1. shall
21 serve at the pleasure of the appointing authority. Members
22 appointed pursuant to subparagraph (a)2. shall serve at the
23 pleasure of the Governor. Initial appointments shall be made
24 no later than 60 days after July 1, 2005.
25 (c) Persons appointed pursuant to paragraph (a), if
26 employed full time by any entity that applies for financial
27 support, must disclose their related interest and recuse
28 themselves from voting on that project.
29 (d) All members must be residents of the state.
30 (e) All members must have an investment, banking, or
31 aerospace industry background.
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Florida Senate - 2005 COMMITTEE AMENDMENT
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1 (f) Committee members shall serve without compensation
2 but are entitled to reimbursement for travel and per diem
3 expenses in accordance with policies and procedures
4 established by the corporation's board and s. 112.061 for
5 necessary expenses in the performance of their duties,
6 including attending board meetings and conducting board
7 business.
8 (4) The committee shall:
9 (a) Review and recommend investments in projects
10 proposed by state space partnerships, economic development
11 organizations, and private sector entities which have a clear
12 economic benefit to the state and which support growth of its
13 aerospace industry employment and technology base as well as
14 enhancing aerospace infrastructure projects in this state.
15 (b) Review progress information reports resulting from
16 projects approved for support by the corporation.
17 (c) Recommend and assist the corporation in reviewing,
18 drafting, and executing any contracts or other instruments
19 necessary for the corporation to exercise its powers.
20 (d) Recommend policies and procedures with respect to
21 setting criteria for investment proposals to be submitted to
22 the fund, evaluation criteria for the fund, monitoring
23 requirements, and investment and approval guidelines for all
24 investments to be made through the program.
25 (e) Ensure that each proposed project is judged on the
26 merit of the project, its perceived need, and the investment
27 return, benefit, or overall value to the aerospace industry
28 capability in this state.
29 (f) Assess, as part of its recommendation process,
30 whether investment returns or value and capital preservation
31 objectives exist for each recommended investment.
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 1938
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1 (g) Review whether appropriate investment and
2 retention of the program's capital base or other benefits are
3 realized through the investments of the program, except in the
4 case of a grant or equity investment, which shall be made
5 based on value received by the program.
6 331.506 Florida Aerospace Finance Corporation;
7 tax-exempt status.--The Florida Aerospace Finance Corporation,
8 as created by s. 331.407, is granted tax-exempt status. The
9 corporation is not required to pay taxes on any project or
10 other property owned by the corporation or upon any resulting
11 income. All notes, mortgages, security agreements, letters of
12 credit, or other instruments that arise out of or are given to
13 secure the payment of debt issued in conjunction with a
14 project financed under the corporation's authority are also
15 free from taxation by the state or any other local unit,
16 political subdivision, or instrumentality of the state. The
17 tax exemption granted is not applicable to taxes imposed on
18 interest, income, or profits on debt obligations owned by the
19 corporation.
20 331.507 Annual report.--By September 30 of each year,
21 the corporation shall submit to the Governor, the President of
22 the Senate, the Speaker of the House of Representatives, the
23 Senate Minority Leader, and the House Minority Leader a
24 complete and detailed report in accordance with s. 331.419 and
25 setting forth:
26 (1) An evaluation of its activities and
27 recommendations for change.
28 (2) The program's impact on the participation of
29 private banks and other private organizations and individuals
30 in the corporation's financing programs, and other economic
31 and social benefits to businesses in this state.
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Florida Senate - 2005 COMMITTEE AMENDMENT
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1 (3) The program's assets and liabilities at the end of
2 its most recent fiscal year.
3 Section 4. Except as otherwise expressly provided in
4 this act and except for this section, which shall take effect
5 upon becoming a law, this act shall take effect July 1, 2005.
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8 ================ T I T L E A M E N D M E N T ===============
9 And the title is amended as follows:
10 Delete everything before the enacting clause
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12 and insert:
13 A bill to be entitled
14 An act relating to aerospace; creating s.
15 196.1999, F.S.; providing for an exemption from
16 ad valorem taxes for certain space
17 laboratories; providing for the exemption to
18 apply retroactively to January 1, 2005;
19 repealing s. 196.1994, F.S., which expired
20 effective July 1, 2004, and which provided an
21 exemption from ad valorem taxes for certain
22 space laboratories; creating ss. 331.501,
23 331.502, 331.503, 331.504, 331.505, 331.506,
24 and 331.507, F.S.; providing a popular name;
25 creating the Florida Aerospace Infrastructure
26 Act; providing legislative findings and intent;
27 providing definitions; creating the Florida
28 Aerospace Infrastructure Investment Program
29 within the Florida Aerospace Finance
30 Corporation; providing purposes; providing for
31 funding the program; requiring the corporation
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Florida Senate - 2005 COMMITTEE AMENDMENT
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1 to administer the program; providing
2 requirements; providing the corporation with
3 investment authorizations, criteria,
4 requirements, and limitations; creating the
5 Independent Investment Committee within the
6 corporation; providing purposes of the
7 committee; providing for appointment of
8 committee members and criteria; providing for
9 terms; requiring members to serve without
10 compensation; providing for per diem and travel
11 expenses; providing committee responsibilities;
12 specifying tax-exempt status of the
13 corporation; exempting the corporation from all
14 state and local taxes; providing an exception;
15 requiring the corporation to prepare and submit
16 annual reports; providing effective dates.
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