CS/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 a
26contingent effective date.
27
28Be It Enacted by the Legislature of the State of Florida:
29
30     Section 1.  This act may be cited as the "Space Transition
31and Revitalization Act."
32     Section 2.  Section 288.1088, Florida Statutes, is amended
33to read:
34     288.1088  Quick Action Closing Fund.-
35     (1)(a)  The Legislature finds that attracting, retaining,
36and providing favorable conditions for the growth of certain
37high-impact business facilities, privately developed critical
38rural infrastructure, or key facilities in economically
39distressed urban or rural communities which provide widespread
40economic benefits to the public through high-quality employment
41opportunities in such facilities or in related facilities
42attracted to the state, through the increased tax base provided
43by the high-impact facility and related businesses, through an
44enhanced entrepreneurial climate in the state and the resulting
45business and employment opportunities, and through the
46stimulation and enhancement of the state's universities and
47community colleges. In the global economy, there exists serious
48and fierce international competition for these facilities, and
49in most instances, when all available resources for economic
50development have been used, the state continues to encounter
51severe competitive disadvantages in vying for these business
52facilities. Florida's rural areas must provide a competitive
53environment for business in the information age. This often
54requires an incentive to make it feasible for private investors
55to provide infrastructure in those areas.
56     (b)  The Legislature finds that the conclusion of the space
57shuttle program and the gap in civil human space flight will
58result in significant job losses that will negatively impact
59families, companies, the state and regional economies, and the
60capability level of this state's aerospace workforce. Thus, the
61Legislature also finds that this loss of jobs is a matter of
62state interest and great public importance. The Legislature
63further finds that it is in the state's interest for provisions
64to be made in incentive programs for economic development to
65maximize the state's ability to mitigate these impacts and to
66develop a more diverse aerospace economy.
67     (c)(b)  The Legislature therefore declares that sufficient
68resources shall be available to respond to extraordinary
69economic opportunities and to compete effectively for these
70high-impact business facilities, critical private infrastructure
71in rural areas, and key businesses in economically distressed
72urban or rural communities, and that up to 20 percent of these
73resources may be used for projects to retain or create high-
74technology jobs that are directly associated with developing a
75more diverse aerospace economy in this state.
76     (2)  There is created within the Office of Tourism, Trade,
77and Economic Development the Quick Action Closing Fund. Projects
78eligible for receipt of funds from the Quick Action Closing Fund
79shall:
80     (a)  Be in an industry as referenced in s. 288.106.
81     (b)  Have a positive payback ratio of at least 5 to 1.
82     (c)  Be an inducement to the project's location or
83expansion in the state.
84     (d)  Pay an average annual wage of at least 125 percent of
85the areawide or statewide private sector average wage.
86     (e)  Be supported by the local community in which the
87project is to be located.
88     (3)(a)  Enterprise Florida, Inc., shall review applications
89pursuant to s. 288.061 and determine the eligibility of each
90project consistent with the criteria in subsection (2).
91Enterprise Florida, Inc., in consultation with the Office of
92Tourism, Trade, and Economic Development, may waive these
93criteria:
94     1.  Based on extraordinary circumstances;
95     2.  In order to mitigate the impact of the conclusion of
96the space shuttle program; or
97     3.  In rural areas of critical economic concern if the
98project would significantly benefit the local or regional
99economy.
100     (b)  Enterprise Florida, Inc., shall evaluate individual
101proposals for high-impact business facilities and forward
102recommendations regarding the use of moneys in the fund for such
103facilities to the director of the Office of Tourism, Trade, and
104Economic Development. Such evaluation and recommendation must
105include, but need not be limited to:
106     1.  A description of the type of facility or
107infrastructure, its operations, and the associated product or
108service associated with the facility.
109     2.  The number of full-time-equivalent jobs that will be
110created by the facility and the total estimated average annual
111wages of those jobs or, in the case of privately developed rural
112infrastructure, the types of business activities and jobs
113stimulated by the investment.
114     3.  The cumulative amount of investment to be dedicated to
115the facility within a specified period.
116     4.  A statement of any special impacts the facility is
117expected to stimulate in a particular business sector in the
118state or regional economy or in the state's universities and
119community colleges.
120     5.  A statement of the role the incentive is expected to
121play in the decision of the applicant business to locate or
122expand in this state or for the private investor to provide
123critical rural infrastructure.
124     6.  A report evaluating the quality and value of the
125company submitting a proposal. The report must include:
126     a.  A financial analysis of the company, including an
127evaluation of the company's short-term liquidity ratio as
128measured by its assets to liability, the company's profitability
129ratio, and the company's long-term solvency as measured by its
130debt-to-equity ratio;
131     b.  The historical market performance of the company;
132     c.  A review of any independent evaluations of the company;
133     d.  A review of the latest audit of the company's financial
134statement and the related auditor's management letter; and
135     e.  A review of any other types of audits that are related
136to the internal and management controls of the company.
137     (c)(b)  Within 22 calendar days after receiving the
138evaluation and recommendation from Enterprise Florida, Inc., the
139director shall recommend to the Governor approval or disapproval
140of a project for receipt of funds from the Quick Action Closing
141Fund. In recommending a project, the director shall include
142proposed performance conditions that the project must meet to
143obtain incentive funds. The Governor shall provide the
144evaluation of projects recommended for approval to the President
145of the Senate and the Speaker of the House of Representatives
146and consult with the President of the Senate and the Speaker of
147the House of Representatives before giving final approval for a
148project. The Executive Office of the Governor shall recommend
149approval of a project and the release of funds pursuant to the
150legislative consultation and review requirements set forth in s.
151216.177. The recommendation must include proposed performance
152conditions that the project must meet in order to obtain funds.
153     (d)(c)  Upon the approval of the Governor, the director of
154the Office of Tourism, Trade, and Economic Development and the
155business shall enter into a contract that sets forth the
156conditions for payment of moneys from the fund. The contract
157must include the total amount of funds awarded; the performance
158conditions that must be met to obtain the award, including, but
159not limited to, net new employment in the state, average salary,
160and total capital investment; demonstrate a baseline of current
161service and a measure of enhanced capability; the methodology
162for validating performance; the schedule of payments from the
163fund; and sanctions for failure to meet performance conditions.
164The contract must provide that payment of moneys from the fund
165is contingent upon sufficient appropriation of funds by the
166Legislature and upon sufficient release of appropriated funds by
167the Legislative Budget Commission.
168     (e)(d)  Enterprise Florida, Inc., shall validate contractor
169performance. Such validation shall be reported within 6 months
170after completion of the contract to the Governor, President of
171the Senate, and the Speaker of the House of Representatives.
172     Section 3.  Section 331.370, Florida Statutes, is created
173to read:
174     331.370  Space Business Investment and Financial Services
175Initiative.-
176     (1)  The Legislature finds that there is a critical need
177for capital assistance and financing services for aerospace
178business expansion, economic development, and infrastructure
179financing within the state. The Legislature further finds that
180it is in the state's economic interest to provide initial
181investment funding and to establish dedicated investment funding
182during the period of transition from the space shuttle program
183to provide financial and investment services consistent with the
184powers and duties of the Space Florida Act to new and expanding
185aerospace and space-enabled businesses, programs, and projects
186in order to offset job losses and promote economic growth.
187     (2)  The president of Space Florida shall develop a 5-year
188strategy and plan for the management and goals of the Space
189Business Investment and Financial Services Trust Fund, which
190must be submitted to the board of directors and approved before
191any investment or expenditure is made. This strategy and plan
192must be updated and approved annually by the board of directors,
193and included in the financing assistance plan established in s.
194331.305(6). The board of directors may adopt procedural rules
195for the approval of all proposed expenditures and investments
196from this fund. The president of Space Florida shall submit a
197quarterly financial report on the use and status of the fund to
198the Office of Tourism, Trade, and Economic Development within
199the Executive Office of the Governor. Beginning January 1, 2011,
200and every year thereafter, Space Florida shall submit to the
201Governor, the President of the Senate, and the Speaker of the
202House of Representatives a report summarizing the activities and
203accomplishments of the recipients of assistance from the Space
204Business Investment and Financial Services Trust Fund during the
205previous 12 months.
206     Section 4.  Notwithstanding any other provisions of law,
207funds provided in Specific Appropriation 2649 of chapter 2008-
208152, Laws of Florida, for Space and Aerospace Infrastructure to
209make improvements to Launch Complex 36 on the 45th Space Wing
210property may also be used by Space Florida for improvements to
211other launch complexes and space transportation facilities in
212order to attract new space vehicle testing and launch business
213to the state; to address intermodal requirements and impacts of
214the launch ranges, spaceports, and other space transportation
215facilities; to advance aerospace technology to meet the current
216and future needs of the United States commercial space
217transportation industry; and to assist in the development of
218joint-use facilities and technology that support aviation and
219aerospace operations, including high-altitude and suborbital
220flights and range technology development.
221     Section 5.  This act shall take effect July 1, 2010, if HB
2221391, or similar legislation creating the Space Business
223Investment and Financial Services Trust Fund, is adopted in the
224same legislative session or an extension thereof and becomes
225law.


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