Florida Senate - 2010                             CS for SB 2500
       By the Committee on Commerce; and Senator Altman
       577-03660-10                                          20102500c1
    1                        A bill to be entitled                      
    2         An act relating to space and aerospace infrastructure;
    3         providing a short title; creating s. 212.0502, F.S.;
    4         requiring that certain sales tax collections be
    5         deposited into the Space Business Investment and
    6         Financial Services Trust Fund and used for specified
    7         purposes; exempting certain taxes; requiring returns
    8         to be filed with the Department of Revenue; providing
    9         for future expiration; amending s. 288.1088, F.S.;
   10         providing legislative findings; authorizing the use of
   11         a specified amount of resources for projects to retain
   12         or create high-technology jobs directly associated
   13         with developing a more diverse aerospace economy in
   14         the state; authorizing Enterprise Florida, Inc., to
   15         waive eligibility criteria for projects receiving
   16         funds from the Quick Action Closing Fund which would
   17         mitigate the impact of the conclusion of the space
   18         shuttle program; creating s. 331.370, F.S.; providing
   19         legislative findings; specifying use of funds in the
   20         Space Business Investment and Financial Services Trust
   21         Fund; requiring the president of Space Florida to
   22         develop a strategy and plan for the management and
   23         goals for the Space Business Investment and Financial
   24         Services Trust Fund; providing requirements for the
   25         strategy and plan; requiring Space Florida’s board of
   26         directors to adopt procedures for the approval of all
   27         proposed expenditures and investments from the fund;
   28         requiring the president of Space Florida to submit a
   29         quarterly financial report on the use and status of
   30         the fund to the Office of Tourism, Trade, and Economic
   31         Development within the Executive Office of the
   32         Governor; requiring Space Florida to submit an annual
   33         report to the Governor and the Legislature; revising
   34         authorized uses of specified Space Florida
   35         appropriations; providing appropriations; providing a
   36         contingent effective date.
   38         WHEREAS, Florida has been the nation’s leading space launch
   39  site for human exploration, national defense, and commercial
   40  missions, and
   41         WHEREAS, space exploration and enterprises are a critical
   42  component of Florida’s economy and have provided high-value
   43  employment opportunities for 50 years, and
   44         WHEREAS, the facilities at the John F. Kennedy Space Center
   45  and the Cape Canaveral Air Force Station in Florida provide
   46  significant recurring state revenue, and
   47         WHEREAS, the nation’s program for space exploration and the
   48  new exploration initiative of the National Aeronautics and Space
   49  Administration (NASA) will result in the end of the space
   50  shuttle program and the development of new vehicles and
   51  missions, and will also create a gap in NASA’s ability to send
   52  humans to space, and
   53         WHEREAS, this gap will have a major impact on jobs, the
   54  economy, and critical skill retention, and there is not any
   55  single program, company, or initiative that can offset the
   56  shuttle program’s termination, and
   57         WHEREAS, the structure and timing of the new human space
   58  flight program will be decided by the President and Congress,
   59  and
   60         WHEREAS, Florida’s space workforce and facilities are
   61  unique national assets that should be preserved and
   62  strengthened, and
   63         WHEREAS, new opportunities are emerging for this workforce
   64  and industry which include commercial launch systems, heavy-lift
   65  vehicles, microgravity research, and space-enabled commercial
   66  applications, and
   67         WHEREAS, during this generational transition, the state
   68  must aggressively pursue new programs, diversify its space
   69  industry by recruiting and growing new enterprises, renew its
   70  facility and technology base, strengthen and focus research and
   71  technology development, and re-deploy the space shuttle
   72  workforce in new 21st Century endeavors, and
   73         WHEREAS, the state has a significant interest in
   74  establishing new and strengthened space enterprises to mitigate
   75  the impact of the conclusion of the space shuttle program and to
   76  serve as a foundation for new, broad, statewide opportunities
   77  for commerce and discovery in this century, and
   78         WHEREAS, sustained and dedicated resources are needed to
   79  accomplish this transition, and
   80         WHEREAS, in order to attract and influence aerospace
   81  programs and companies in their earliest stages of development,
   82  the Legislature must ensure the availability of facilities,
   83  investment capital, business services, and a trained workforce,
   84  and
   85         WHEREAS, to ensure the existence of this capability during
   86  this transition and to promote a longer-term strategic approach,
   87  the Legislature deems it is in the state’s interest to establish
   88  dedicated revenue and investment streams for a 5-year period to
   89  accomplish a successful transition and revitalization of the
   90  aerospace industry, NOW, THEREFORE,
   92  Be It Enacted by the Legislature of the State of Florida:
   94         Section 1. This act may be cited as the “Space Transition
   95  and Revitalization Act.”
   96         Section 2. Section 212.0502, Florida Statutes, is created
   97  to read:
   98         212.0502 Space Business Investment and Financial Services
   99  Trust Fund; deposit of tax revenues.—
  100         (1)Taxes authorized under this chapter which are paid by
  101  any business that is contracted or subcontracted by the National
  102  Aeronautics and Space Administration to sell admissions to
  103  attractions or tours at the Kennedy Space Center and the Cape
  104  Canaveral Air Force Station and that conducts business at such
  105  facilities shall be deposited into the Space Business Investment
  106  and Financial Services Trust Fund and used for the purposes
  107  specified in s. 331.370. Excluded from the provisions of this
  108  section are discretionary sales surtaxes authorized under s.
  109  212.055.
  110         (2)Each business entity remitting taxes under subsection
  111  (1) shall file a return each month with the department, along
  112  with segregated tax information regarding taxes collected on
  113  sales, admissions, tours, leases, and licenses. The department
  114  is subject to the same confidentiality provisions as are
  115  applicable to returns and information filed with it pursuant to
  116  s. 213.053.
  117         (3)This section expires June 30, 2014.
  118         Section 3. Section 288.1088, Florida Statutes, is amended
  119  to read:
  120         288.1088 Quick Action Closing Fund.—
  121         (1)(a) The Legislature finds that attracting, retaining,
  122  and providing favorable conditions for the growth of certain
  123  high-impact business facilities, privately developed critical
  124  rural infrastructure, or key facilities in economically
  125  distressed urban or rural communities which provide widespread
  126  economic benefits to the public through high-quality employment
  127  opportunities in such facilities or in related facilities
  128  attracted to the state, through the increased tax base provided
  129  by the high-impact facility and related businesses, through an
  130  enhanced entrepreneurial climate in the state and the resulting
  131  business and employment opportunities, and through the
  132  stimulation and enhancement of the state’s universities and
  133  community colleges. In the global economy, there exists serious
  134  and fierce international competition for these facilities, and
  135  in most instances, when all available resources for economic
  136  development have been used, the state continues to encounter
  137  severe competitive disadvantages in vying for these business
  138  facilities. Florida’s rural areas must provide a competitive
  139  environment for business in the information age. This often
  140  requires an incentive to make it feasible for private investors
  141  to provide infrastructure in those areas.
  142         (b) The Legislature finds that the conclusion of the space
  143  shuttle program and the gap in civil human space flight will
  144  result in significant job losses that will negatively impact
  145  families, companies, the state and regional economies, and the
  146  capability level of this state’s aerospace workforce. Thus, the
  147  Legislature also finds that this loss of jobs is a matter of
  148  state interest and great public importance. The Legislature
  149  further finds that it is in the state’s interest for provisions
  150  to be made in incentive programs for economic development to
  151  maximize the state’s ability to mitigate these impacts and to
  152  develop a more diverse aerospace economy.
  153         (c)(b) The Legislature therefore declares that sufficient
  154  resources shall be available to respond to extraordinary
  155  economic opportunities and to compete effectively for these
  156  high-impact business facilities, critical private infrastructure
  157  in rural areas, and key businesses in economically distressed
  158  urban or rural communities, and that up to 20 percent of these
  159  resources may be used for projects to retain or create high
  160  technology jobs that are directly associated with developing a
  161  more diverse aerospace economy in this state.
  162         (2) There is created within the Office of Tourism, Trade,
  163  and Economic Development the Quick Action Closing Fund. Projects
  164  eligible for receipt of funds from the Quick Action Closing Fund
  165  shall:
  166         (a) Be in an industry as referenced in s. 288.106.
  167         (b) Have a positive payback ratio of at least 5 to 1.
  168         (c) Be an inducement to the project’s location or expansion
  169  in the state.
  170         (d) Pay an average annual wage of at least 125 percent of
  171  the areawide or statewide private sector average wage.
  172         (e) Be supported by the local community in which the
  173  project is to be located.
  174         (3)(a) Enterprise Florida, Inc., shall review applications
  175  pursuant to s. 288.061 and determine the eligibility of each
  176  project consistent with the criteria in subsection (2).
  177  Enterprise Florida, Inc., in consultation with the Office of
  178  Tourism, Trade, and Economic Development, may waive these
  179  criteria:
  180         1. Based on extraordinary circumstances;
  181         2. In order to mitigate the impact of the conclusion of the
  182  space shuttle program; or
  183         3. In rural areas of critical economic concern if the
  184  project would significantly benefit the local or regional
  185  economy.
  186         (b) Enterprise Florida, Inc., shall evaluate individual
  187  proposals for high-impact business facilities and forward
  188  recommendations regarding the use of moneys in the fund for such
  189  facilities to the director of the Office of Tourism, Trade, and
  190  Economic Development. Such evaluation and recommendation must
  191  include, but need not be limited to:
  192         1. A description of the type of facility or infrastructure,
  193  its operations, and the associated product or service associated
  194  with the facility.
  195         2. The number of full-time-equivalent jobs that will be
  196  created by the facility and the total estimated average annual
  197  wages of those jobs or, in the case of privately developed rural
  198  infrastructure, the types of business activities and jobs
  199  stimulated by the investment.
  200         3. The cumulative amount of investment to be dedicated to
  201  the facility within a specified period.
  202         4. A statement of any special impacts the facility is
  203  expected to stimulate in a particular business sector in the
  204  state or regional economy or in the state’s universities and
  205  community colleges.
  206         5. A statement of the role the incentive is expected to
  207  play in the decision of the applicant business to locate or
  208  expand in this state or for the private investor to provide
  209  critical rural infrastructure.
  210         6. A report evaluating the quality and value of the company
  211  submitting a proposal. The report must include:
  212         a. A financial analysis of the company, including an
  213  evaluation of the company’s short-term liquidity ratio as
  214  measured by its assets to liability, the company’s profitability
  215  ratio, and the company’s long-term solvency as measured by its
  216  debt-to-equity ratio;
  217         b. The historical market performance of the company;
  218         c. A review of any independent evaluations of the company;
  219         d. A review of the latest audit of the company’s financial
  220  statement and the related auditor’s management letter; and
  221         e. A review of any other types of audits that are related
  222  to the internal and management controls of the company.
  223         (c)(b) Within 22 calendar days after receiving the
  224  evaluation and recommendation from Enterprise Florida, Inc., the
  225  director shall recommend to the Governor approval or disapproval
  226  of a project for receipt of funds from the Quick Action Closing
  227  Fund. In recommending a project, the director shall include
  228  proposed performance conditions that the project must meet to
  229  obtain incentive funds. The Governor shall provide the
  230  evaluation of projects recommended for approval to the President
  231  of the Senate and the Speaker of the House of Representatives
  232  and consult with the President of the Senate and the Speaker of
  233  the House of Representatives before giving final approval for a
  234  project. The Executive Office of the Governor shall recommend
  235  approval of a project and the release of funds pursuant to the
  236  legislative consultation and review requirements set forth in s.
  237  216.177. The recommendation must include proposed performance
  238  conditions that the project must meet in order to obtain funds.
  239         (d)(c) Upon the approval of the Governor, the director of
  240  the Office of Tourism, Trade, and Economic Development and the
  241  business shall enter into a contract that sets forth the
  242  conditions for payment of moneys from the fund. The contract
  243  must include the total amount of funds awarded; the performance
  244  conditions that must be met to obtain the award, including, but
  245  not limited to, net new employment in the state, average salary,
  246  and total capital investment; demonstrate a baseline of current
  247  service and a measure of enhanced capability; the methodology
  248  for validating performance; the schedule of payments from the
  249  fund; and sanctions for failure to meet performance conditions.
  250  The contract must provide that payment of moneys from the fund
  251  is contingent upon sufficient appropriation of funds by the
  252  Legislature and upon sufficient release of appropriated funds by
  253  the Legislative Budget Commission.
  254         (e)(d) Enterprise Florida, Inc., shall validate contractor
  255  performance. Such validation shall be reported within 6 months
  256  after completion of the contract to the Governor, President of
  257  the Senate, and the Speaker of the House of Representatives.
  258         Section 4. Section 331.370, Florida Statutes, is created to
  259  read:
  260         331.370 Space Business Investment and Financial Services
  261  Initiative.—
  262         (1) The Legislature finds that there is a critical need for
  263  capital assistance and financing services for aerospace business
  264  expansion, economic development, and infrastructure financing
  265  within the state. The Legislature further finds that it is in
  266  the state’s economic interest to provide initial investment
  267  funding and to establish dedicated investment funding during the
  268  period of transition from the space shuttle program to provide
  269  financial and investment services consistent with the powers and
  270  duties of the Space Florida Act to new and expanding aerospace
  271  and space-enabled businesses, programs, and projects in order to
  272  offset job losses and promote economic growth.
  273         (2)Funds from the Space Business Investment and Financial
  274  Services Trust Fund, if established by law, shall be used
  275  exclusively to provide investment and financial services to new,
  276  expanding, and relocating space businesses, programs, and
  277  projects within Florida pursuant to the duties established in
  278  this section and s. 331.3051 and may not be used for personnel,
  279  administrative, or overhead expenses of Space Florida.
  280         (3) The president of Space Florida shall develop a 5-year
  281  strategy and plan for the management and goals of the Space
  282  Business Investment and Financial Services Trust Fund, which
  283  must be submitted to the board of directors and approved before
  284  any investment or expenditure is made. This strategy and plan
  285  must be updated and approved annually by the board of directors,
  286  and included in the financing assistance plan established in s.
  287  331.305(6). The board of directors may adopt procedures and
  288  rules for the approval of all proposed expenditures and
  289  investments from this fund. The president of Space Florida shall
  290  submit a quarterly financial report on the use and status of the
  291  fund to the Office of Tourism, Trade, and Economic Development
  292  within the Executive Office of the Governor. Beginning January
  293  1, 2011, and every year thereafter, Space Florida shall submit
  294  to the Governor, the President of the Senate, and the Speaker of
  295  the House of Representatives a report summarizing the activities
  296  and accomplishments of the recipients of assistance from the
  297  Space Business Investment and Financial Services Trust Fund
  298  during the previous 12 months.
  299         Section 5. Funds in Specific Appropriation 2649 of chapter
  300  2008-152, Laws of Florida, which were provided for Space and
  301  Aerospace Infrastructure to make improvements to Launch Complex
  302  36 on the 45th Space Wing property, may also be used for
  303  improvements to other launch complexes and space transportation
  304  facilities in order to attract new space vehicle testing and
  305  launch business to the state; to address intermodal requirements
  306  and impacts of the launch ranges, spaceports, and other space
  307  transportation facilities; to advance aerospace technology to
  308  meet the current and future needs of the United States
  309  commercial space transportation industry; and to assist in the
  310  development of joint-use facilities and technology that support
  311  aviation and aerospace operations, including high-altitude and
  312  suborbital flights and range technology development.
  313         Section 6. There is appropriated for the 2010-2011 state
  314  fiscal year to the Space Business Investment and Financial
  315  Services Trust Fund the sum of $10 million of nonrecurring funds
  316  from the General Revenue Fund. Notwithstanding s. 216.301,
  317  Florida Statutes, and pursuant to s. 216.351, Florida Statutes,
  318  any remaining funds from this appropriation as of June 30, 2011,
  319  shall remain in the trust fund and be available for carrying out
  320  the purposes of the trust fund.
  321         Section 7. There is appropriated for the 2010-2011 state
  322  fiscal year the sum of $3 million in nonrecurring general
  323  revenue to Space Florida for the exclusive purpose of providing
  324  targeted business-development support services and business
  325  recruitment. Activities and services may include securing
  326  federal programs and processes, identifying and securing new
  327  contract and grant opportunities for businesses in this state,
  328  assisting businesses in establishing operations, securing
  329  necessary qualifications and approvals, obtaining capital, and
  330  engaging company and federal officials in discussions regarding
  331  new program projects, including research, design, testing, and
  332  manufacturing projects in this state. Emphasis shall be placed
  333  on assisting small- to medium-sized businesses on a statewide
  334  basis. These funds may not be used for administrative or
  335  operational costs of Space Florida.
  336         Section 8. There is appropriated for the 2010-2011 state
  337  fiscal year to the Office of Tourism, Trade, and Economic
  338  Development within the Executive Office of the Governor the sum
  339  of $12.575 million in nonrecurring general revenue through the
  340  Space Business Investment and Financial Services Fund to address
  341  business infrastructure needs to assist in the development and
  342  management of state-of-the-art facilities for space businesses
  343  that will create high-technology, high-wage-earning jobs.
  344         Section 9. This act shall take effect July 1, 2010, if CS
  345  for SB 2476, or similar legislation creating the Space Business
  346  Investment and Financial Services Trust Fund, is adopted in the
  347  same legislative session or an extension thereof and becomes
  348  law.