Florida Senate - 2010                                    SB 2500
       By Senator Altman
       24-01768-10                                           20102500__
    1                        A bill to be entitled                      
    2         An act relating to space and aerospace infrastructure;
    3         providing a short title; amending s. 288.1088, F.S.;
    4         providing legislative findings; authorizing the use of
    5         a specified amount of resources for projects to retain
    6         or create high-technology jobs directly associated
    7         with developing a more diverse aerospace economy in
    8         the state; authorizing Enterprise Florida, Inc., to
    9         waive eligibility criteria for projects receiving
   10         funds from the Quick Action Closing Fund which would
   11         mitigate the impact of the conclusion of the space
   12         shuttle program; creating s. 331.370, F.S.; providing
   13         legislative findings; requiring the president of Space
   14         Florida to develop a strategy and plan for the
   15         management and goals for the Space Business Investment
   16         and Financial Services Trust Fund; providing
   17         requirements for the strategy and plan; requiring
   18         Space Florida’s board of directors to adopt procedures
   19         for the approval of all proposed expenditures and
   20         investments from the fund; requiring the president of
   21         Space Florida to submit a quarterly financial report
   22         on the use and status of the fund to the Office of
   23         Tourism, Trade, and Economic Development within the
   24         Executive Office of the Governor; requiring Space
   25         Florida to submit an annual report to the Governor and
   26         the Legislature; revising authorized uses of specified
   27         Space Florida appropriations; providing
   28         appropriations; providing a contingent effective date.
   30         WHEREAS, Florida has been the nation’s leading space launch
   31  site for human exploration, national defense, and commercial
   32  missions, and
   33         WHEREAS, space exploration and enterprises are a critical
   34  component of Florida’s economy and have provided high-value
   35  employment opportunities for 50 years, and
   36         WHEREAS, the facilities at the John F. Kennedy Space Center
   37  and the Cape Canaveral Air Force Station in Florida provide
   38  significant recurring state revenue, and
   39         WHEREAS, the nation’s program for space exploration and the
   40  new exploration initiative of the National Aeronautics and Space
   41  Administration (NASA) will result in the end of the space
   42  shuttle program and the development of new vehicles and
   43  missions, and will also create a gap in NASA’s ability to send
   44  humans to space, and
   45         WHEREAS, this gap will have a major impact on jobs, the
   46  economy, and critical skill retention, and there is not any
   47  single program, company, or initiative that can offset the
   48  shuttle program’s termination, and
   49         WHEREAS, the structure and timing of the new human space
   50  flight program will be decided by the President and Congress,
   51  and
   52         WHEREAS, Florida’s space workforce and facilities are
   53  unique national assets that should be preserved and
   54  strengthened, and
   55         WHEREAS, new opportunities are emerging for this workforce
   56  and industry which include commercial launch systems, heavy-lift
   57  vehicles, microgravity research, and space-enabled commercial
   58  applications, and
   59         WHEREAS, during this generational transition, the state
   60  must aggressively pursue new programs, diversify its space
   61  industry by recruiting and growing new enterprises, renew its
   62  facility and technology base, strengthen and focus research and
   63  technology development, and re-deploy the space shuttle
   64  workforce in new 21st Century endeavors, and
   65         WHEREAS, the state has a significant interest in
   66  establishing new and strengthened space enterprises to mitigate
   67  the impact of the conclusion of the space shuttle program and to
   68  serve as a foundation for new, broad, statewide opportunities
   69  for commerce and discovery in this century, and
   70         WHEREAS, sustained and dedicated resources are needed to
   71  accomplish this transition, and
   72         WHEREAS, in order to attract and influence aerospace
   73  programs and companies in their earliest stages of development,
   74  the Legislature must ensure the availability of facilities,
   75  investment capital, business services, and a trained workforce,
   76  and
   77         WHEREAS, to ensure the existence of this capability during
   78  this transition and to promote a longer-term strategic approach,
   79  the Legislature deems it is in the state’s interest to establish
   80  dedicated revenue and investment streams for a 5-year period to
   81  accomplish a successful transition and revitalization of the
   82  aerospace industry, NOW, THEREFORE,
   84  Be It Enacted by the Legislature of the State of Florida:
   86         Section 1. This act may be cited as the “Space Transition
   87  and Revitalization Act.”
   88         Section 2. Section 288.1088, Florida Statutes, is amended
   89  to read:
   90         288.1088 Quick Action Closing Fund.—
   91         (1)(a) The Legislature finds that attracting, retaining,
   92  and providing favorable conditions for the growth of certain
   93  high-impact business facilities, privately developed critical
   94  rural infrastructure, or key facilities in economically
   95  distressed urban or rural communities which provide widespread
   96  economic benefits to the public through high-quality employment
   97  opportunities in such facilities or in related facilities
   98  attracted to the state, through the increased tax base provided
   99  by the high-impact facility and related businesses, through an
  100  enhanced entrepreneurial climate in the state and the resulting
  101  business and employment opportunities, and through the
  102  stimulation and enhancement of the state’s universities and
  103  community colleges. In the global economy, there exists serious
  104  and fierce international competition for these facilities, and
  105  in most instances, when all available resources for economic
  106  development have been used, the state continues to encounter
  107  severe competitive disadvantages in vying for these business
  108  facilities. Florida’s rural areas must provide a competitive
  109  environment for business in the information age. This often
  110  requires an incentive to make it feasible for private investors
  111  to provide infrastructure in those areas.
  112         (b) The Legislature finds that the conclusion of the space
  113  shuttle program and the gap in civil human space flight will
  114  result in significant job losses that will negatively impact
  115  families, companies, the state and regional economies, and the
  116  capability level of this state’s aerospace workforce. Thus, the
  117  Legislature also finds that this loss of jobs is a matter of
  118  state interest and great public importance. The Legislature
  119  further finds that it is in the state’s interest for provisions
  120  to be made in incentive programs for economic development to
  121  maximize the state’s ability to mitigate these impacts and to
  122  develop a more diverse aerospace economy.
  123         (c)(b) The Legislature therefore declares that sufficient
  124  resources shall be available to respond to extraordinary
  125  economic opportunities and to compete effectively for these
  126  high-impact business facilities, critical private infrastructure
  127  in rural areas, and key businesses in economically distressed
  128  urban or rural communities, and that up to 20 percent of these
  129  resources may be used for projects to retain or create high
  130  technology jobs that are directly associated with developing a
  131  more diverse aerospace economy in this state.
  132         (2) There is created within the Office of Tourism, Trade,
  133  and Economic Development the Quick Action Closing Fund. Projects
  134  eligible for receipt of funds from the Quick Action Closing Fund
  135  shall:
  136         (a) Be in an industry as referenced in s. 288.106.
  137         (b) Have a positive payback ratio of at least 5 to 1.
  138         (c) Be an inducement to the project’s location or expansion
  139  in the state.
  140         (d) Pay an average annual wage of at least 125 percent of
  141  the areawide or statewide private sector average wage.
  142         (e) Be supported by the local community in which the
  143  project is to be located.
  144         (3)(a) Enterprise Florida, Inc., shall review applications
  145  pursuant to s. 288.061 and determine the eligibility of each
  146  project consistent with the criteria in subsection (2).
  147  Enterprise Florida, Inc., in consultation with the Office of
  148  Tourism, Trade, and Economic Development, may waive these
  149  criteria:
  150         1. Based on extraordinary circumstances;
  151         2. In order to mitigate the impact of the conclusion of the
  152  space shuttle program; or
  153         3. In rural areas of critical economic concern if the
  154  project would significantly benefit the local or regional
  155  economy.
  156         (b) Enterprise Florida, Inc., shall evaluate individual
  157  proposals for high-impact business facilities and forward
  158  recommendations regarding the use of moneys in the fund for such
  159  facilities to the director of the Office of Tourism, Trade, and
  160  Economic Development. Such evaluation and recommendation must
  161  include, but need not be limited to:
  162         1. A description of the type of facility or infrastructure,
  163  its operations, and the associated product or service associated
  164  with the facility.
  165         2. The number of full-time-equivalent jobs that will be
  166  created by the facility and the total estimated average annual
  167  wages of those jobs or, in the case of privately developed rural
  168  infrastructure, the types of business activities and jobs
  169  stimulated by the investment.
  170         3. The cumulative amount of investment to be dedicated to
  171  the facility within a specified period.
  172         4. A statement of any special impacts the facility is
  173  expected to stimulate in a particular business sector in the
  174  state or regional economy or in the state’s universities and
  175  community colleges.
  176         5. A statement of the role the incentive is expected to
  177  play in the decision of the applicant business to locate or
  178  expand in this state or for the private investor to provide
  179  critical rural infrastructure.
  180         6. A report evaluating the quality and value of the company
  181  submitting a proposal. The report must include:
  182         a. A financial analysis of the company, including an
  183  evaluation of the company’s short-term liquidity ratio as
  184  measured by its assets to liability, the company’s profitability
  185  ratio, and the company’s long-term solvency as measured by its
  186  debt-to-equity ratio;
  187         b. The historical market performance of the company;
  188         c. A review of any independent evaluations of the company;
  189         d. A review of the latest audit of the company’s financial
  190  statement and the related auditor’s management letter; and
  191         e. A review of any other types of audits that are related
  192  to the internal and management controls of the company.
  193         (c)(b) Within 22 calendar days after receiving the
  194  evaluation and recommendation from Enterprise Florida, Inc., the
  195  director shall recommend to the Governor approval or disapproval
  196  of a project for receipt of funds from the Quick Action Closing
  197  Fund. In recommending a project, the director shall include
  198  proposed performance conditions that the project must meet to
  199  obtain incentive funds. The Governor shall provide the
  200  evaluation of projects recommended for approval to the President
  201  of the Senate and the Speaker of the House of Representatives
  202  and consult with the President of the Senate and the Speaker of
  203  the House of Representatives before giving final approval for a
  204  project. The Executive Office of the Governor shall recommend
  205  approval of a project and the release of funds pursuant to the
  206  legislative consultation and review requirements set forth in s.
  207  216.177. The recommendation must include proposed performance
  208  conditions that the project must meet in order to obtain funds.
  209         (d)(c) Upon the approval of the Governor, the director of
  210  the Office of Tourism, Trade, and Economic Development and the
  211  business shall enter into a contract that sets forth the
  212  conditions for payment of moneys from the fund. The contract
  213  must include the total amount of funds awarded; the performance
  214  conditions that must be met to obtain the award, including, but
  215  not limited to, net new employment in the state, average salary,
  216  and total capital investment; demonstrate a baseline of current
  217  service and a measure of enhanced capability; the methodology
  218  for validating performance; the schedule of payments from the
  219  fund; and sanctions for failure to meet performance conditions.
  220  The contract must provide that payment of moneys from the fund
  221  is contingent upon sufficient appropriation of funds by the
  222  Legislature and upon sufficient release of appropriated funds by
  223  the Legislative Budget Commission.
  224         (e)(d) Enterprise Florida, Inc., shall validate contractor
  225  performance. Such validation shall be reported within 6 months
  226  after completion of the contract to the Governor, President of
  227  the Senate, and the Speaker of the House of Representatives.
  228         Section 3. Section 331.370, Florida Statutes, is created to
  229  read:
  230         331.370 Space Business Investment and Financial Services
  231  Initiative.—
  232         (1) The Legislature finds that there is a critical need for
  233  capital assistance and financing services for aerospace business
  234  expansion, economic development, and infrastructure financing
  235  within the state. The Legislature further finds that it is in
  236  the state’s economic interest to provide initial investment
  237  funding and to establish dedicated investment funding during the
  238  period of transition from the space shuttle program to provide
  239  financial and investment services consistent with the powers and
  240  duties of the Space Florida Act to new and expanding aerospace
  241  and space-enabled businesses, programs, and projects in order to
  242  offset job losses and promote economic growth.
  243         (2) The president of Space Florida shall develop a 5-year
  244  strategy and plan for the management and goals of the Space
  245  Business Investment and Financial Services Trust Fund, which
  246  must be submitted to the board of directors and approved before
  247  any investment or expenditure is made. This strategy and plan
  248  must be updated and approved annually by the board of directors,
  249  and included in the financing assistance plan established in s.
  250  331.305(6). The board of directors may adopt procedures and
  251  rules for the approval of all proposed expenditures and
  252  investments from this fund. The president of Space Florida shall
  253  submit a quarterly financial report on the use and status of the
  254  fund to the Office of Tourism, Trade, and Economic Development
  255  within the Executive Office of the Governor. Beginning January
  256  1, 2011, and every year thereafter, Space Florida shall submit
  257  to the Governor, the President of the Senate, and the Speaker of
  258  the House of Representatives a report summarizing the activities
  259  and accomplishments of the recipients of assistance from the
  260  Space Business Investment and Financial Services Trust Fund
  261  during the previous 12 months.
  262         Section 4. Funds in Specific Appropriation 2649 of chapter
  263  2008-152, Laws of Florida, which were provided for Space and
  264  Aerospace Infrastructure to make improvements to Launch Complex
  265  36 on the 45th Space Wing property, may also be used for
  266  improvements to other launch complexes and space transportation
  267  facilities in order to attract new space vehicle testing and
  268  launch business to the state; to address intermodal requirements
  269  and impacts of the launch ranges, spaceports, and other space
  270  transportation facilities; and to assist in the development of
  271  joint-use facilities and technology that support aviation and
  272  aerospace operations, including high-altitude and suborbital
  273  flights and range technology development.
  274         Section 5. There is appropriated for the 2010-2011 state
  275  fiscal year to the Office of Tourism, Trade, and Economic
  276  Development within the Executive Office of the Governor the sum
  277  of $10 million of nonrecurring funds from the General Revenue
  278  Fund to establish and provide initial funding for the Space
  279  Business Investment and Financial Services Trust Fund.
  280  Notwithstanding s. 216.301, Florida Statutes, and pursuant to s.
  281  216.351, Florida Statutes, any remaining funds from this
  282  appropriation as of June 30, 2011, shall remain in the trust
  283  fund and be available for carrying out the purposes of the trust
  284  fund.
  285         Section 6. There is appropriated for the 2010-2011 state
  286  fiscal year the sum of $3 million in nonrecurring general
  287  revenue to Space Florida for the exclusive purpose of providing
  288  targeted business-development support services and business
  289  recruitment. Activities and services may include securing
  290  federal programs and processes, identifying and securing new
  291  contract and grant opportunities for businesses in this state,
  292  assisting businesses in establishing operations, securing
  293  necessary qualifications and approvals, obtaining capital, and
  294  engaging company and federal officials in discussions regarding
  295  new program projects, including research, design, testing, and
  296  manufacturing projects in this state. Emphasis shall be placed
  297  on assisting small- to medium-sized businesses on a statewide
  298  basis. These funds may not be used for administrative or
  299  operational costs of Space Florida.
  300         Section 7. There is appropriated for the 2010-2011 state
  301  fiscal year to the Office of Tourism, Trade, and Economic
  302  Development within the Executive Office of the Governor the sum
  303  of $12.575 million in nonrecurring general revenue through the
  304  Space Business Investment and Financial Services Fund to address
  305  business infrastructure needs to assist in the development and
  306  management of state-of-the-art facilities for space businesses
  307  that will create high-technology, high-wage-earning jobs.
  308         Section 8. This act shall take effect July 1, 2010, if SB
  309  _____, or similar legislation creating the Space Business
  310  Investment and Financial Services Trust Fund, is adopted in the
  311  same legislative session or an extension thereof and becomes
  312  law.