HB 1389

1
A bill to be entitled
2An act relating to space and aerospace infrastructure;
3providing a short title; amending s. 288.1088, F.S.;
4providing legislative findings; authorizing the use of a
5specified amount of resources for projects to retain or
6create high-technology jobs directly associated with
7developing a more diverse aerospace economy in the state;
8authorizing Enterprise Florida, Inc., to waive eligibility
9criteria for projects receiving funds from the Quick
10Action Closing Fund which would mitigate the impact of the
11conclusion of the space shuttle program; creating s.
12331.370, F.S.; providing legislative findings; requiring
13the president of Space Florida to develop a strategy and
14plan for the management and goals for the Space Business
15Investment and Financial Services Trust Fund; providing
16requirements for the strategy and plan; requiring Space
17Florida's board of directors to adopt procedures for the
18approval of all proposed expenditures and investments from
19the fund; requiring the president of Space Florida to
20submit a quarterly financial report on the use and status
21of the fund to the Office of Tourism, Trade, and Economic
22Development within the Executive Office of the Governor;
23requiring Space Florida to submit an annual report to the
24Governor and the Legislature; revising authorized uses of
25specified Space Florida appropriations; providing
26appropriations; providing a contingent effective date.
27
28     WHEREAS, Florida has been the nation's leading space launch
29site for human exploration, national defense, and commercial
30missions, and
31     WHEREAS, space exploration and enterprises are a critical
32component of Florida's economy and have provided high-value
33employment opportunities for 50 years, and
34     WHEREAS, the facilities at the John F. Kennedy Space Center
35and the Cape Canaveral Air Force Station in Florida provide
36significant recurring state revenue, and
37     WHEREAS, the nation's program for space exploration and the
38new exploration initiative of the National Aeronautics and Space
39Administration (NASA) will result in the end of the space
40shuttle program and the development of new vehicles and
41missions, and will also create a gap in NASA's ability to send
42humans to space, and
43     WHEREAS, this gap will have a major impact on jobs, the
44economy, and critical skill retention, and there is not any
45single program, company, or initiative that can offset the
46shuttle program's termination, and
47     WHEREAS, the structure and timing of the new human space
48flight program will be decided by the President and Congress,
49and
50     WHEREAS, Florida's space workforce and facilities are
51unique national assets that should be preserved and
52strengthened, and
53     WHEREAS, new opportunities are emerging for this workforce
54and industry which include commercial launch systems, heavy-lift
55vehicles, microgravity research, and space-enabled commercial
56applications, and
57     WHEREAS, during this generational transition, the state
58must aggressively pursue new programs, diversify its space
59industry by recruiting and growing new enterprises, renew its
60facility and technology base, strengthen and focus research and
61technology development, and re-deploy the space shuttle
62workforce in new 21st Century endeavors, and
63     WHEREAS, the state has a significant interest in
64establishing new and strengthened space enterprises to mitigate
65the impact of the conclusion of the space shuttle program and to
66serve as a foundation for new, broad, statewide opportunities
67for commerce and discovery in this century, and
68     WHEREAS, sustained and dedicated resources are needed to
69accomplish this transition, and
70     WHEREAS, in order to attract and influence aerospace
71programs and companies in their earliest stages of development,
72the Legislature must ensure the availability of facilities,
73investment capital, business services, and a trained workforce,
74and
75     WHEREAS, to ensure the existence of this capability during
76this transition and to promote a longer-term strategic approach,
77the Legislature deems it is in the state's interest to establish
78dedicated revenue and investment streams for a 5-year period to
79accomplish a successful transition and revitalization of the
80aerospace industry, NOW, THEREFORE,
81
82Be It Enacted by the Legislature of the State of Florida:
83
84     Section 1.  This act may be cited as the "Space Transition
85and Revitalization Act."
86     Section 2.  Section 288.1088, Florida Statutes, is amended
87to read:
88     288.1088  Quick Action Closing Fund.-
89     (1)(a)  The Legislature finds that attracting, retaining,
90and providing favorable conditions for the growth of certain
91high-impact business facilities, privately developed critical
92rural infrastructure, or key facilities in economically
93distressed urban or rural communities which provide widespread
94economic benefits to the public through high-quality employment
95opportunities in such facilities or in related facilities
96attracted to the state, through the increased tax base provided
97by the high-impact facility and related businesses, through an
98enhanced entrepreneurial climate in the state and the resulting
99business and employment opportunities, and through the
100stimulation and enhancement of the state's universities and
101community colleges. In the global economy, there exists serious
102and fierce international competition for these facilities, and
103in most instances, when all available resources for economic
104development have been used, the state continues to encounter
105severe competitive disadvantages in vying for these business
106facilities. Florida's rural areas must provide a competitive
107environment for business in the information age. This often
108requires an incentive to make it feasible for private investors
109to provide infrastructure in those areas.
110     (b)  The Legislature finds that the conclusion of the space
111shuttle program and the gap in civil human space flight will
112result in significant job losses that will negatively impact
113families, companies, the state and regional economies, and the
114capability level of this state's aerospace workforce. Thus, the
115Legislature also finds that this loss of jobs is a matter of
116state interest and great public importance. The Legislature
117further finds that it is in the state's interest for provisions
118to be made in incentive programs for economic development to
119maximize the state's ability to mitigate these impacts and to
120develop a more diverse aerospace economy.
121     (c)(b)  The Legislature therefore declares that sufficient
122resources shall be available to respond to extraordinary
123economic opportunities and to compete effectively for these
124high-impact business facilities, critical private infrastructure
125in rural areas, and key businesses in economically distressed
126urban or rural communities, and that up to 20 percent of these
127resources may be used for projects to retain or create high-
128technology jobs that are directly associated with developing a
129more diverse aerospace economy in this state.
130     (2)  There is created within the Office of Tourism, Trade,
131and Economic Development the Quick Action Closing Fund. Projects
132eligible for receipt of funds from the Quick Action Closing Fund
133shall:
134     (a)  Be in an industry as referenced in s. 288.106.
135     (b)  Have a positive payback ratio of at least 5 to 1.
136     (c)  Be an inducement to the project's location or
137expansion in the state.
138     (d)  Pay an average annual wage of at least 125 percent of
139the areawide or statewide private sector average wage.
140     (e)  Be supported by the local community in which the
141project is to be located.
142     (3)(a)  Enterprise Florida, Inc., shall review applications
143pursuant to s. 288.061 and determine the eligibility of each
144project consistent with the criteria in subsection (2).
145Enterprise Florida, Inc., in consultation with the Office of
146Tourism, Trade, and Economic Development, may waive these
147criteria:
148     1.  Based on extraordinary circumstances;
149     2.  In order to mitigate the impact of the conclusion of
150the space shuttle program; or
151     3.  In rural areas of critical economic concern if the
152project would significantly benefit the local or regional
153economy.
154     (b)  Enterprise Florida, Inc., shall evaluate individual
155proposals for high-impact business facilities and forward
156recommendations regarding the use of moneys in the fund for such
157facilities to the director of the Office of Tourism, Trade, and
158Economic Development. Such evaluation and recommendation must
159include, but need not be limited to:
160     1.  A description of the type of facility or
161infrastructure, its operations, and the associated product or
162service associated with the facility.
163     2.  The number of full-time-equivalent jobs that will be
164created by the facility and the total estimated average annual
165wages of those jobs or, in the case of privately developed rural
166infrastructure, the types of business activities and jobs
167stimulated by the investment.
168     3.  The cumulative amount of investment to be dedicated to
169the facility within a specified period.
170     4.  A statement of any special impacts the facility is
171expected to stimulate in a particular business sector in the
172state or regional economy or in the state's universities and
173community colleges.
174     5.  A statement of the role the incentive is expected to
175play in the decision of the applicant business to locate or
176expand in this state or for the private investor to provide
177critical rural infrastructure.
178     6.  A report evaluating the quality and value of the
179company submitting a proposal. The report must include:
180     a.  A financial analysis of the company, including an
181evaluation of the company's short-term liquidity ratio as
182measured by its assets to liability, the company's profitability
183ratio, and the company's long-term solvency as measured by its
184debt-to-equity ratio;
185     b.  The historical market performance of the company;
186     c.  A review of any independent evaluations of the company;
187     d.  A review of the latest audit of the company's financial
188statement and the related auditor's management letter; and
189     e.  A review of any other types of audits that are related
190to the internal and management controls of the company.
191     (c)(b)  Within 22 calendar days after receiving the
192evaluation and recommendation from Enterprise Florida, Inc., the
193director shall recommend to the Governor approval or disapproval
194of a project for receipt of funds from the Quick Action Closing
195Fund. In recommending a project, the director shall include
196proposed performance conditions that the project must meet to
197obtain incentive funds. The Governor shall provide the
198evaluation of projects recommended for approval to the President
199of the Senate and the Speaker of the House of Representatives
200and consult with the President of the Senate and the Speaker of
201the House of Representatives before giving final approval for a
202project. The Executive Office of the Governor shall recommend
203approval of a project and the release of funds pursuant to the
204legislative consultation and review requirements set forth in s.
205216.177. The recommendation must include proposed performance
206conditions that the project must meet in order to obtain funds.
207     (d)(c)  Upon the approval of the Governor, the director of
208the Office of Tourism, Trade, and Economic Development and the
209business shall enter into a contract that sets forth the
210conditions for payment of moneys from the fund. The contract
211must include the total amount of funds awarded; the performance
212conditions that must be met to obtain the award, including, but
213not limited to, net new employment in the state, average salary,
214and total capital investment; demonstrate a baseline of current
215service and a measure of enhanced capability; the methodology
216for validating performance; the schedule of payments from the
217fund; and sanctions for failure to meet performance conditions.
218The contract must provide that payment of moneys from the fund
219is contingent upon sufficient appropriation of funds by the
220Legislature and upon sufficient release of appropriated funds by
221the Legislative Budget Commission.
222     (e)(d)  Enterprise Florida, Inc., shall validate contractor
223performance. Such validation shall be reported within 6 months
224after completion of the contract to the Governor, President of
225the Senate, and the Speaker of the House of Representatives.
226     Section 3.  Section 331.370, Florida Statutes, is created
227to read:
228     331.370  Space Business Investment and Financial Services
229Initiative.-
230     (1)  The Legislature finds that there is a critical need
231for capital assistance and financing services for aerospace
232business expansion, economic development, and infrastructure
233financing within the state. The Legislature further finds that
234it is in the state's economic interest to provide initial
235investment funding and to establish dedicated investment funding
236during the period of transition from the space shuttle program
237to provide financial and investment services consistent with the
238powers and duties of the Space Florida Act to new and expanding
239aerospace and space-enabled businesses, programs, and projects
240in order to offset job losses and promote economic growth.
241     (2)  The president of Space Florida shall develop a 5-year
242strategy and plan for the management and goals of the Space
243Business Investment and Financial Services Trust Fund, which
244must be submitted to the board of directors and approved before
245any investment or expenditure is made. This strategy and plan
246must be updated and approved annually by the board of directors,
247and included in the financing assistance plan established in s.
248331.305(6). The board of directors may adopt procedures and
249rules for the approval of all proposed expenditures and
250investments from this fund. The president of Space Florida shall
251submit a quarterly financial report on the use and status of the
252fund to the Office of Tourism, Trade, and Economic Development
253within the Executive Office of the Governor. Beginning January
2541, 2011, and every year thereafter, Space Florida shall submit
255to the Governor, the President of the Senate, and the Speaker of
256the House of Representatives a report summarizing the activities
257and accomplishments of the recipients of assistance from the
258Space Business Investment and Financial Services Trust Fund
259during the previous 12 months.
260     Section 4.  Funds in Specific Appropriation 2649 of chapter
2612008-152, Laws of Florida, which were provided for Space and
262Aerospace Infrastructure to make improvements to Launch Complex
26336 on the 45th Space Wing property, may also be used for
264improvements to other launch complexes and space transportation
265facilities in order to attract new space vehicle testing and
266launch business to the state; to address intermodal requirements
267and impacts of the launch ranges, spaceports, and other space
268transportation facilities; and to assist in the development of
269joint-use facilities and technology that support aviation and
270aerospace operations, including high-altitude and suborbital
271flights and range technology development.
272     Section 5.  There is appropriated for the 2010-2011 state
273fiscal year to the Office of Tourism, Trade, and Economic
274Development within the Executive Office of the Governor the sum
275of $10 million of nonrecurring funds from the General Revenue
276Fund to establish and provide initial funding for the Space
277Business Investment and Financial Services Trust Fund.
278Notwithstanding s. 216.301, Florida Statutes, and pursuant to s.
279216.351, Florida Statutes, any remaining funds from this
280appropriation as of June 30, 2011, shall remain in the trust
281fund and be available for carrying out the purposes of the trust
282fund.
283     Section 6.  There is appropriated for the 2010-2011 state
284fiscal year the sum of $3 million in nonrecurring general
285revenue to Space Florida for the exclusive purpose of providing
286targeted business-development support services and business
287recruitment. Activities and services may include securing
288federal programs and processes, identifying and securing new
289contract and grant opportunities for businesses in this state,
290assisting businesses in establishing operations, securing
291necessary qualifications and approvals, obtaining capital, and
292engaging company and federal officials in discussions regarding
293new program projects, including research, design, testing, and
294manufacturing projects in this state. Emphasis shall be placed
295on assisting small-to medium-sized businesses on a statewide
296basis. These funds may not be used for administrative or
297operational costs of Space Florida.
298     Section 7.  There is appropriated for the 2010-2011 state
299fiscal year to the Office of Tourism, Trade, and Economic
300Development within the Executive Office of the Governor the sum
301of $12.575 million in nonrecurring general revenue through the
302Space Business Investment and Financial Services Trust Fund to
303address business infrastructure needs to assist in the
304development and management of state-of-the-art facilities for
305space businesses that will create high-technology, high-wage-
306earning jobs.
307     Section 8.  This act shall take effect July 1, 2010, if HB
3081391, or similar legislation creating the Space Business
309Investment and Financial Services Trust Fund, is adopted in the
310same legislative session or an extension thereof and becomes
311law.


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