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A bill to be entitled

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An act relating to Space Florida; creating s. 288.1087,

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F.S.; providing legislative intent; creating the Space and

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Aerospace Development Infrastructure Enhancement Fund in

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the Office of Tourism, Trade, and Economic Development;

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providing for moneys from the funds to be distributed to

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successful applicants to upgrade space-related

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infrastructure, to enter into partnerships with applicable

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businesses on space-related projects, or to provide

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incentives for space-related ventures; requiring that

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certain information be included in the application for

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funding; requiring the Office of Tourism, Trade, and

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Economic Development to contract with nationally

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recognized economists to develop an economic impact

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assessment model that evaluates the costs, benefits,

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useful life, and other relevant factors related to space

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and aerospace infrastructure projects; describing the

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criteria by which the applicants will be judged as

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eligible to receive funding; requiring the executive board

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of Space Florida and the director of the Office of

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Tourism, Trade, and Economic Development to recommend

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approval or disapproval of proposed projects; providing

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for the Governor to decide which proposed projects receive

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Space and Aerospace Development Infrastructure Enhancement

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Funds; requiring the director of the Office of Tourism,

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Trade, and Economic Development and the successful

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applicant to enter into a contract that sets forth the

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conditions for receiving moneys from the fund; describing

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the content of the contract; requiring Enterprise Florida,

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Inc., to validate the performance of the contractor;

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requiring that the validation be complete within a

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specified time; providing an appropriation; providing a

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contingent effective date.

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

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     Section 1.  Section 288.1087, Florida Statutes, is created

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to read:

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     288.1087 The Space and Aerospace Development Infrastructure

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Enhancement Fund.--

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     (1)(a) The Legislature finds that attracting, retaining,

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partnering with, and providing favorable conditions for space and

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aerospace infrastructure and businesses that provide widespread

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economic benefit to the public is in the state's best interest.

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State investment in the space and aerospace industry can help

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provide high-quality employment opportunities for residents of

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this state, increase the tax base, invigorate the entrepreneurial

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climate in the state through the resulting business and

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employment opportunities, and stimulate and enhance the state's

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universities and community colleges. In the global economy there

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exists international competition for space and aerospace

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infrastructure, facilities, and business opportunities, and in

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most instances, when all available resources for economic

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development have been used, the state encounters competitive

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disadvantages. This state must provide a competitive environment

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for aerospace and space business in the information age. This

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often requires an incentive to make it feasible for private

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investors to provide infrastructure in those areas.

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     (b) The Legislature, therefore, declares that sufficient

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resources must be made available to respond to extraordinary

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economic opportunities in the space and aerospace business, to

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address the need for space and aerospace business facilities and

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infrastructure, and to compete for key space and aerospace

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businesses interested in entering into partnerships with the

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state.

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     (2) There is created in the Office of Tourism, Trade, and

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Economic Development the Space and Aerospace Development

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Infrastructure Enhancement Fund to be available for use by Space

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Florida. The moneys from the fund, which will be distributed to

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successful applicants, shall be used to provide or upgrade space-

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related infrastructure, enter into partnerships with applicable

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businesses on space-related projects, or otherwise provide

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incentives for space-related ventures.

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     (3) An application for funding from the Space and Aerospace

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Development Infrastructure Enhancement Fund must include:

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     (a) A description of the type of space and aerospace

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infrastructure project, its operations, and the associated

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product or services associated with the facility.

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     (b) The number of full-time equivalent jobs that will be

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created by the space and aerospace infrastructure project and the

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total estimated average annual wages of those jobs or, in the

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case of privately developed infrastructure, the types of business

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activities and jobs stimulated by the investment.

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     (c) The cumulative amount of investment of public and

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private funds which will be dedicated to the project within a

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specified period.

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     (d) A description of the stimulating effect the project is

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expected to have on a particular business sector in the state or

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regional economy or on the state's universities and community

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colleges.

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     (e) A statement of how the financial incentive is expected

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to effect the decision of the applicant's business to locate or

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expand in this state.

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     (f) A report evaluating the quality and value of the space

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and aerospace company submitting the project proposal. The report

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must include:

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     1. A financial analysis of the project company, including

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an evaluation of the company's short-term liquidity ratio as

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measured by its assets to liability, the company's profitability

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ratio, and the company's long-term solvency as measured by its

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debt-to-equity ratio;

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     2. An analysis of the market performance of the company

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over the previous 5 years;

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     3. A review of any independent evaluations examining the

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company and its performance;

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     4. A review of the latest audit of the company's financial

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statement and the related auditor's management letter; and

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     5. A review of any other type of audit that is related to

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the internal and management controls of the company.

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     (4) The Office of Tourism, Trade, and Economic Development

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shall contract with nationally recognized economists to develop

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an economic impact assessment model that evaluates the costs,

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benefits, useful life, and other relevant factors related to

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space and aerospace infrastructure projects. The economic impact

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assessment model must be available for use by Space Florida and

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the Office of Tourism, Trade, and Economic Development no later

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than December 31, 2008.

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     (5) Projects eligible to receive Space and Aerospace

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Development Infrastructure Enhancement funds must:

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     (a) Assist Space Florida in carrying out its

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responsibilities under part II of chapter 331;

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     (b) Create or retain high-quality, high-salary jobs in the

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space or aerospace industry in this state;

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     (c) Have a positive payback ratio of at least 5 to 1;

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     (d) Be an inducement to the project's location or expansion

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in the state;

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     (e) Be supported by the local community in which the

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project is to be located;

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     (f) Be able to match the state investment; and

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     (g) Have undergone an economic analysis.

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     (6) At the request of Space Florida, Enterprise Florida,

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Inc., shall determine the eligibility of each applicant project

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consistent with the criteria set forth in subsection (5).

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Enterprise Florida, Inc., in consultation with Space Florida and

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the Office of Tourism, Trade, and Economic Development, may waive

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these criteria based on extraordinary circumstances if the

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project would significantly benefit the local or regional

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economy.

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     (7)(a) After receiving the economic impact assessment, the

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Space Florida executive board and the director of the Office of

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Tourism, Trade, and Economic Development shall meet to recommend

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approval or disapproval of each proposed project. For projects

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recommended to receive funds, the board and director shall rank

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each proposal in the order of its meeting the established

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criteria. When recommending a project, Space Florida and the

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director of the Office of Tourism, Trade, and Economic

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Development must include proposed performance conditions that the

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project must meet in order to obtain money from the fund.

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     (b) The recommendations shall be sent to the Governor who

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shall further evaluate the projects approved for funding. The

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Governor shall consult with the President of the Senate and the

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Speaker of the House of Representatives before giving final

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approval for a project.

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     (c) The Executive Office of the Governor shall present the

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recommended projects and request that project funds be released

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pursuant to the legislative consultation and review requirements

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set forth in s. 216.177. The recommendations must include

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proposed performance conditions that each project is expected to

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meet in order to receive funds.

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     (d) After receiving the required approvals, the director of

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the Office of Tourism, Trade, and Economic Development and the

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recipient shall enter into a contract that sets forth the

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conditions for receiving moneys from the fund. The contract must

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include the total amount of funds awarded, the performance

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conditions that must be met in order to obtain the award, a

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baseline of current service and a measure of enhanced capability,

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the methodology for validating performance, the schedule of

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payments from the fund, and sanctions for failure to meet

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performance conditions. The contract must state that payment of

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moneys from the Space and Aerospace Development Infrastructure

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Enhancement Fund is contingent upon sufficient appropriation of

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funds by the Legislature and upon sufficient release of

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appropriated funds by the Legislative Budget Commission.

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     (8) Enterprise Florida, Inc., shall validate contractor

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performance. The validation must be completed no later than 6

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months after the contract is sent to the Governor and to Space

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Florida.

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     Section 2. For the 2008-2009 fiscal year, the sum of

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$______ in nonrecurring funds is appropriated from the General

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Revenue Fund to the Space and Aerospace Development

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Infrastructure Enhancement Fund in the Office of Tourism, Trade,

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and Economic Development for Space Florida for the purpose of

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implementing the provisions of this act.

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     Section 3.  This act shall take effect July 1, 2008, if

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Senate Bill ____, or similar legislation, is adopted in the same

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legislative session or an extension thereof and becomes law.