Florida Senate - 2017 SB 216 By Senator Rodriguez 37-00333-17 2017216__ 1 A bill to be entitled 2 An act relating to economic incentive programs; 3 amending s. 20.055, F.S.; redefining terms; amending 4 s. 288.075, F.S.; providing that certain information 5 disclosed in a specified manner is no longer 6 confidential and exempt from s. 119.07(1) and s. 7 24(a), Art. I of the State Constitution and requiring 8 such information to be published as specified; 9 amending s. 288.076, F.S.; requiring the Department of 10 Economic Opportunity to contract with an independent 11 third party to verify compliance with economic 12 development incentive requirements; requiring the 13 department to publish results of the independent third 14 party review within a specified period; amending s. 15 288.9015, F.S.; requiring a two-thirds vote for 16 certain contracts executed by Enterprise Florida, 17 Inc.; amending s. 288.904, F.S.; reducing state 18 operational funding to Enterprise Florida, Inc., under 19 certain circumstances; amending s. 288.905, F.S.; 20 requiring a person appointed president of the board of 21 directors of Enterprise Florida, Inc., to be confirmed 22 by the Senate; providing requirements for incentive 23 payments made to employees of Enterprise Florida, 24 Inc.; providing an effective date. 25 26 Be It Enacted by the Legislature of the State of Florida: 27 28 Section 1. Paragraphs (a) and (d) of subsection (1) of 29 section 20.055, Florida Statutes, are amended to read: 30 20.055 Agency inspectors general.— 31 (1) As used in this section, the term: 32 (a) “Agency head” means the Governor, a Cabinet officer, or 33 a secretary or executive director as those terms are defined in 34 s. 20.03, the chair of the Public Service Commission, the 35 Director of the Office of Insurance Regulation of the Financial 36 Services Commission, the Director of the Office of Financial 37 Regulation of the Financial Services Commission, the board of 38 directors of the Florida Housing Finance Corporation, the 39 executive director of the Office of Early Learning, the 40 chairperson of the board of directors of Enterprise Florida, 41 Inc., and the Chief Justice of the State Supreme Court. 42 (d) “State agency” means each department created pursuant 43 to this chapter and the Executive Office of the Governor, the 44 Department of Military Affairs, the Fish and Wildlife 45 Conservation Commission, the Office of Insurance Regulation of 46 the Financial Services Commission, the Office of Financial 47 Regulation of the Financial Services Commission, the Public 48 Service Commission, the Board of Governors of the State 49 University System, the Florida Housing Finance Corporation, the 50 Agency for State Technology, the Office of Early Learning, 51 Enterprise Florida Inc., and the state courts system. 52 Section 2. Present subsection (7) of section 288.075, 53 Florida Statutes, is renumbered as subsection (8), and a new 54 subsection (7) is added to that section, to read: 55 288.075 Confidentiality of records.— 56 (7) INFORMATION REQUIRED TO BE PUBLISHED.—For purposes of 57 the department’s obligations under s. 288.076, once any 58 information described in subsections (2) through (6) is 59 disclosed, such disclosure terminates any period of 60 confidentiality which may have applied to that information, even 61 if other information related to the same business or project 62 remains confidential and exempt from s. 119.07(1) and s. 24(a), 63 Art. I of the State Constitution. The department shall publish, 64 pursuant to s. 288.076, the information that is otherwise 65 disclosed. 66 Section 3. Present subsections (9) and (10) of section 67 288.076, Florida Statutes, are renumbered as subsections (10) 68 and (11), respectively, and a new subsection (9) is added to 69 that section, to read: 70 288.076 Return on investment reporting for economic 71 development programs.— 72 (9) The department shall procure and execute a contract for 73 an independent third party to annually verify that each business 74 that receives an economic development incentive satisfies all of 75 the requirements of the incentive agreement. The independent 76 third-party contractor shall perform the functions and conduct 77 the activities necessary to verify compliance with the 78 performance terms of each economic development incentive 79 contract. The department shall publish on its website the 80 results of each audit performed by the independent third party 81 within 48 hours after receiving the results. 82 Section 4. Paragraph (c) of subsection (2) of section 83 288.9015, Florida Statutes, is amended to read: 84 288.9015 Powers of Enterprise Florida, Inc.; board of 85 directors.— 86 (2) The board of directors of Enterprise Florida, Inc., 87 may: 88 (c) Make and enter into contracts and other instruments 89 necessary or convenient for the exercise of its powers and 90 functions. A contract executed by Enterprise Florida, Inc., with 91 a person or organization under which such person or organization 92 agrees to perform economic development services or similar 93 business assistance services on behalf of the state or 94 Enterprise Florida, Inc.,or the statemust include provisions 95 requiring a performance report on the contracted activities and 96 must account for the proper use of funds provided under the 97 contract, coordinate with other components of state and local 98 economic development systems, and avoid duplication of existing 99 state and local services and activities. A contract executed by 100 Enterprise Florida, Inc., with a person or an organization must 101 be approved by a two-thirds vote of the entire board of 102 directors of Enterprise Florida, Inc., if the person or one or 103 more employees, agents, officers, directors, shareholders, 104 principals, or consultants of the person or the organization are 105 members of the board of directors of Enterprise Florida, Inc., 106 or if one or more employees, agents, officers, directors, 107 shareholders, principals, or consultants of an affiliate or 108 subsidiary of the person or the organization are members of the 109 board of directors of Enterprise Florida, Inc. A member of the 110 board of directors of Enterprise Florida, Inc., so affiliated 111 may not vote on such contract. 112 Section 5. Paragraph (c) is added to subsection (2) of 113 section 288.904, Florida Statutes, to read: 114 288.904 Funding for Enterprise Florida, Inc.; performance 115 and return on the public’s investment.— 116 (2) 117 (c) For any fiscal year in which private sector support in 118 operating Enterprise Florida, Inc., and its divisions does not 119 equal at least 100 percent of the state operational funding, 120 Enterprise Florida, Inc., may not receive 100 percent of the 121 state operational funding. Instead, Enterprise Florida, Inc., 122 shall receive the larger of: 123 1. Fifty percent of the state operational funding 124 appropriated; or 125 2. State operational funding in an amount equal to private 126 sector support. 127 Section 6. Subsections (1) and (4) of section 288.905, 128 Florida Statutes, are amended, and subsection (5) is added to 129 that section, to read: 130 288.905 President and employees of Enterprise Florida, 131 Inc.— 132 (1) The board of directors of Enterprise Florida, Inc., 133 shall appoint a president, subject to confirmation by the 134 Senate, who shall serve at the pleasure of the Governor. The 135 president shall also be known as the “secretary of Commerce” and 136 shall serve as the Governor’s chief negotiator for business 137 recruitment and business expansion. 138 (4) AnNoemployee of Enterprise Florida, Inc., may not 139 receive compensation for employment whichthatexceeds the 140 salary paid to the Governor, unless the board of directors and 141 the employee have executed a contract that specifiesprescribes142specific,measurable performance outcomes for the employee, the 143 satisfaction of which provides the basis for the award of 144 incentive payments that increase the employee’s total 145 compensation to a level above the salary paid to the Governor. 146 (5) Enterprise Florida, Inc., may award an employee 147 incentive payments for reaching a goal or obtaining a specified 148 result. However, such goal or result must be quantifiable, 149 measureable, and verifiable. An employee may not earn an 150 incentive payment based on a projected or unconfirmed result. In 151 addition, Enterprise Florida, Inc., may not award any employee 152 an incentive payment for a result related to a contract 153 requiring a two-thirds vote under s. 288.9015(2)(c). 154 Section 7. This act shall take effect July 1, 2017.