Meeting Packet — Workforce Development & Tourism Subcommittee (January 15, 2020)

Summary

A meeting packet for the Workforce Development & Tourism Subcommittee meeting on Wednesday, January 15, 2020, 3:30 pm to 5:30 pm at 12 HOB, with Rene Plasencia as Chair. The agenda lists HB 305, Preemption of Conditions of Employment, by Rommel and HB 717, Space Florida Financing, by Sirois. The staff analysis of HB 305 says the bill expands state preemption relating to wages and conditions of employment by political subdivisions and re-names "Employment benefits" as "Conditions of employment". It says the bill does not appear to have a fiscal impact on state or local government. The packet also contains the text of HB 305 and part of the text of HB 717, which provides an effective date of July 1, 2020.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

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“Meeting Packet — Workforce Development & Tourism Subcommittee (January 15, 2020).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-01-15-3015-workforce-development-tourism-subcommittee-meeting-pac-412b246fbe/, SHA-256 8381d3d87472a1e4dbfeaddda80d4c478bc282a486ee7d71b0da0fdb7c5d13fa.

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Workforce Development & Tourism
Subcommittee
VVednesday,January15,2020
3:30 PM - 5:30 PM
12 HOB

Meeting Packet

Jose Oliva Rene Plasencia
Speaker Chair
The Florida House of Representatives
Commerce Committee

Workforce Development & Tourism Subcommittee
Jose R. Oliva Rene Plasencia
Speaker Chair

Meeting Agenda
Wednesday, January 15, 2020
3:30 pm - 5:30 pm
12 HOB

I. Call to Order

II. Roll Call

Ill. Welcome and Opening Remarks

IV. Consideration of the following bill(s):

HB 305 Preemption of Conditions of Employment by Rommel

HB 717 Space Florida Financing by Sirois

V. Closing Remarks

VI. Adjournment

317 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 305 Preemption of Conditions of Employment
SPONSOR(S): Rommel
TIED BILLS: IDEN./SIM. BILLS: SB 1126

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Workforce Development & Tourism Subcommittee Willson lhJ Barry

2) Local, Federal & Veterans Affairs Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
Florida municipalities and counties have broad authority to legislate on any matter that is not inconsistent with
federal or state law. A local government enactment is inconsistent with state law if (1) the Legislature "has
preempted a particular subject area" or (2) the local enactment conflicts with a state statute. Where state
preemption applies, it precludes a local government from exercising authority in that particular area.

Current law prohibits a political subdivision from requiring an employer to provide wage and employment
benefits not required by state or federal law, providing uniformity throughout the state with regard to mandated
wage and non-wage compensation. Under current law, "Employment benefits" means anything of value that an
employee may receive from an employer in addition to wages and salary. These include:
• Health benefits;
• Paid or unpaid days off for holidays;
• Sick leave;
• Vacation;
• Retirement benefits; and
• Profit-sharing benefits.

Current law provides for specific exemptions to the broad state preemption, such as non-compliance to the
extent necessary to allow receipt of federal funds or the ability of a political subdivision to establish minimum
wages and benefits for its own employees and contractors.

The bill amends s. 218.077, F.S., by expanding state preemption relating to wages and conditions of
employment by political subdivisions.

The bill amends the "Employment benefits" definition and usage in the current law, and re-names it "Conditions
of employment." The bill also expands the scope of the current definition, to include "those terms that form the
basis of a relationship between an employer and a prospective or actual employee, including":
• Preemployment screenings;
• Job classification determinations;
• Job responsibilities;
• Hours of work; and
• Schedules and schedule changes.

The bill does not appear to have a fiscal impact on state or local government.

The bill takes effect upon becoming law.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A EFFECT OF PROPOSED CHANGES:
Background

Home Rule

Municipalities and counties derive broad home rule authority from the Florida Constitution and general
law, except as otherwise provided by law.

Noncharter Counties

A county without a charter has such power of self-government as provided by general 1 or special law,
and may enact county ordinances not inconsistent with general law. 2 General law authorizes counties
"the power to carry on county government" 3 and to "perform any other acts not inconsistent with law,
which acts are in the common interest of the people of the county, and exercise all powers and
privileges not specifically prohibited by law. "4

Charter Counties

Pursuant either to general 5 or special law, a county government may be adopted by charter approved
by the county voters. A county with a charter has all powers of self-government not inconsistent with
general law or special law approved by the county voters. The governing body of a county operating
under a charter may enact county ordinances not inconsistent with general law. In the event of a
conflict between a county and municipal ordinance, the charter must provide which ordinance prevails. 6

Municipalities

Article VIII, section 2 of the Florida Constitution provides that municipalities "shall have governmental,
corporate and proprietary powers to enable them to conduct municipal government, perform municipal
functions and render municipal services, and may exercise any power for municipal purposes except as
otherwise provided by law. 7

Preemption

Local governments have broad authority to legislate on any matter that is not inconsistent with federal
or state law. A local government enactment may be inconsistent with state law if (1) the Legislature
"has preempted a particular subject area" or (2) the local enactment conflicts with a state statute.
Where state preemption applies it precludes a local government from exercising authority in that
particular area. 8 Florida law recognizes two types of preemption: express and implied. Express
preemption requires a specific legislative statement; it cannot be implied or inferred. 9 Express
preemption of a field by the Legislature must be accomplished by clear language stating that intent. 10 In

1
Ch. 125, Part I, F.S.
2
Art. VIII, s. l(f), Fla. Const.
3
S. 125.01(1), F.S.
4
S. 125.0l(l)(w), F.S.
5
S. 125.60, F.S.
6
Art. VIII, s. 1(g), Fla. Const.
7
Art. VIII, s. 2(b ), Fla. Const.
8
Wolf, The Effectiveness of Home Rule: A Preemptions and Coriflict Analysis, 83 Fla. B.J. 92 (June 2009).
9
See City of Hollywoodv. Mulligan, 934 So. 2d 1238, 1243 (Fla. 2006); Phantom of Clearwater, Inc. v. Pinellas County, 894 So. 2d
1011, 1018 (Fla. 2d DCA 2005), approved in Phantom of Brevard, Inc. v. Brevard County, 3 So. 3d 309 (Fla. 2008).
10
Mulligan, 934 So. 2d at 1243.
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cases where the Legislature expressly or specifically preempts an area, there is no problem with
ascertaining what the Legislature intended. 11 Implied preemption should only be found to exist "where
the legislative scheme is so pervasive as to evidence an intent to preempt the particular area, and
where strong public policy reasons exist for finding such an area to be preempted by the Legislature." 12
In cases determining the validity of ordinances enacted in the face of state preemption, the effect has
been to find such ordinances null and void. 13

Local Wage Ordinances in Florida

In 2003, the Legislature enacted s. 218.077, F.S., preempting the establishment of minimum wage to
the state. The law does not limit the authority of a political subdivision to establish a minimum wage for:
• Its employees;
• The employees of an employer contracting with the political subdivision;
• The employees of a subcontractor of such an employer; or
• The employees of an employer receiving a direct tax abatement or subsidy from the political
subdivision, as a condition of the direct tax abatement or subsidy.

Furthermore, the law contains an exception for situations where compliance with the law would prevent
a political subdivision from receiving federal funds. This allows compliance with the Davis-Bacon and
related acts, 14 which direct the Department of Labor to determine fair wages for contractors and
subcontractors working on public buildings and public works. Florida law only allows non-compliance
with regard to local minimum wage alterations to the extent necessary to allow receipt of the federal
funds.

2013 Revisions

In 2013, s. 218.077, F.S., was amended to additionally prohibit political subdivisions from requiring an
employer to provide employment benefits not required by state or federal law. This provided uniformity
throughout the state with regard to mandated non-wage compensation. The amendment maintained
the same exemptions and limitations as discussed above.

Under current law, an "employee" is defined as any natural person who is entitled under state or federal
law to receive a state or federal minimum wage. An "employer'' is defined as any person who is
required under state or federal law to pay a state or federal minimum wage to the person's employees.
A "Political subdivision" is a county, municipality, department, commission, district, board, or other
public body, whether corporate or otherwise, created by or under state law.

"Employment benefits" means anything of value that an employee may receive from an employer in
addition to wages and salary. These include, but are not limited to:
• Health benefits;
• Paid or unpaid days off for holidays;
• Sick leave;
• Vacation;
• Retirement benefits; and
• Profit-sharing benefits.

The 2013 revisions also created the Employer-Sponsored Benefits Study Task Force to study
employment benefits and make a recommendation regarding state preemption policy. The task force

11
Sarasota Alliance for Fair Elections, Inc. v. Browning, 28 So. 3d 880, 886 (Fla. 2010).
12
Tallahassee Mem'l Reg'/ Med. Ctr., Inc. v. Tallahassee Med. Ctr., Inc., 681 So. 2d 826,831 (Fla. 1st DCA 1996)
13
See, e.g., Nat'/ Rifle Ass 'n ofAm., Inc. v. City of S. Miami, 812 So.2d 504 (Fla. 3d DCA 2002).
14
See, e.g., 40 U.S.C. 3141 et seq.
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considered studies, testimony, and statistics over four months before recommending that the state
preempt local governments from setting minimum mandatory employer-sponsored benefits. 15

In 2016, the Florida Retail Federation, Inc. and others sued the City of Miami Beach for enacting in an
ordinance a "City Minimum Living Wage," raising the minimum wage for all employers subject to the
city's business tax receipt requirement and testing the state's preemption powers. 16 The city argued
that article X, section 24(f) of the Florida Constitution 17 nullified the preemption provision found ins.
218.077, F.S. The appellate court agreed with the Florida Retail Federation's position that the plain text
of the Florida Constitution did not affect the legislature's authority to preempt municipal powers.

Effect of the Bill

The bill amends s. 218.077, F.S., by expanding state preemption relating to wages and conditions of
employment by political subdivisions.

The bill amends the "Employment benefits" definition and usage in the current law, and re-names it
"Conditions of employment." The bill also expands the scope of the current definition, to include "those
terms that form the basis of a relationship between an employer and a prospective or actual employee,
including":
• Preemployment screenings;
• Job classification determinations;
• Job responsibilities;
• Hours of work; and
• Schedules and schedule changes.

The bill amends the definition of "Employee" to mean any natural person who "employed by an
employer."

The bill amends the definition of "Employer'' to mean any person who "engages in any activity,
enterprise, or business and employs at least one employee."

The bill provides that the regulation of conditions of employment is expressly preempted to the state,
and that any existing ordinance, regulation, or policy of a political subdivision that is preempted by the
bill is void.

B. SECTION DIRECTORY:

Section 1 Amends s. 218.077, F.S.; defining "condition of employment"; revising definitions;
preempting to the state the right to regulate the conditions of employment by an
employer; and conforming provisions to changes made by the act.

Section 2 Voids certain ordinances, regulations, or policies that are preempted by the act.

Section 3 Provides that the bill shall take effect upon becoming law.

15
Workforce Florida, Inc., Employer-Sponsored Benefits Study Task Force Final Report, (Jan. 15, 2014), pg. 3,
https://careersourceflorida.com/wp-content/uploads/2014/01/TaskForceBenefitsStudyFinalReport.pdf (last visited Jan. 2, 2020).
16
City of Miami Beach v. Florida Retail Federation, Inc., 233 So.3d 1236 at 1238 (Fla. 3d DCA 2017) (declined for review February
5, 2019).
17
Stating that "[t]his amendment provides for payment of a minimum wage and shall not be construed to preempt or otherwise limit
the authority of the state legislature or any other public body to adopt or enforce any other law, regulation, requirement, policy or
standard that provides for payment of higher or supplemental wages or benefits ... " (emphasis added).
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11. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Private employers will not be required by political subdivisions to provide conditions of employment and
related benefits not required by state or federal law, except in limited situations.

D. FISCAL COMMENTS:
None.

111. COMMENTS

A CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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FLORIDA H O U S E 0 F REPRESENTATIVES

HB 305 2020

1 A bill to be entitled
2 An act relating to preemption of conditions of
3 employment; amending s. 218.077, F.S.; defining
4 "condition of employment"; revising definitions;
5 preempting to the state the right to regulate the
6 conditions of employment by an employer; conforming
7 provisions to changes made by the act; voiding certain
8 ordinances, regulations, or policies that are
9 preempted by the act; providing an effective date.
10
11 WHEREAS, the needs and expectations of job applicants and
12 employees must be appropriately balanced against the needs and
13 expectations of employers, who operate businesses that must
14 respond to the demands of a dynamic and rapidly changing economy
15 at the local, state, national, and international levels, and
16 WHEREAS, promoting the economic growth and prosperity of
17 Florida citizens is an important objective of state government,
18 and this economic growth and prosperity depends upon maintaining
19 a stable business climate that will attract new employers to the
20 state and allow existing employers to expand, and
21 WHEREAS, a local government should insert itself into the
22 relationship between employer and employee only where a need for
23 regulation has been clearly demonstrated, and
24 WHEREAS, allowing a local government to impose its
25 individual requirements on the employment relationship could

Page 1 of 5

CODING: Words stricken are deletions; words underlined are additions.
hb0305-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 305 2020

26 reasonably be expected to drive businesses out of those
27 communities and out of the state in search of a more consistent
28 and predictable operating environment, thus disrupting Florida's
29 economy and threatening the public welfare, and
30 WHEREAS, in light of these negative impacts, federal and
31 state governments must be relied upon to adopt uniform
32 regulations governing the employment relationship that strike an
33 appropriate balance between the needs and expectations of
34 employees and employers, NOW, THEREFORE,
35
36 Be It Enacted by the Legislature of the State of Florida:
37
38 Section 1. Section 218.077, Florida Statutes, is amended
39 to read:
40 218.077 Wage and conditions of employment benefits
41 requirements by political subdivisions; restrictions.-
42 (1) As used in this section, the term:
43 (a) "Condition of employment" means those terms that form
44 the basis of a relationship between an employer and a
45 prospective or actual employee, including preemployment
46 screenings; job classification determinations; job
47 responsibilities; hours of work; schedules and schedule changes;
48 wages; payment of wages; leave; paid or unpaid days off for
49 holidays, illness, vacation, and personal necessity; and
50 employee benefits such as retirement, profit-sharing, health,

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hb0305-00
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 305 2020

51 disability, death, and insurance benefits.
52 fil+a+ "Employee" means any natural person who is employed
53 by an employer entitled under state or federal law to receive a
54 state or federal minimum wage.
55 J.S:.l-ta+ "Employer" means any person who engages in any
56 activity, enterprise, or business and employs at least one
57 employee is required under state or federal law to pay a state
58 or federal minimum wage to the person's employees.
59 J..s!l-+e+ "Employer contracting to provide goods or services
60 for the political subdivision" means a person contracting with
61 the political subdivision to provide goods or services to, for
62 the benefit of, or on behalf of, the political subdivision in
63 exchange for valuable consideration, and includes a person
64 leasing or subleasing real property owned by the political
65 subdivision.
66 (d) "Employment benefits" means anything of value that an
67 employee may receive from an employer in addition to wages and
68 salary. The term includes, but is not limited to, health
69 benefits; disability benefits; death benefits; group accidental
70 death and dismemberment benefits; paid or unpaid days off for
71 holidays, siclc leave, vacation, and personal necessity;
72 retirement benefits; and profit sharing benefits.
73 (e) "Federal minimum wage" means a minimum wage required
74 under federal law, including the federal Fair Labor Standards
75 Act of 1938, as amended, 29 U.S.C. ss. 201 et seq.

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FLORIDA H O U S E 0 F REPRESENTATIVES

HB 305 2020

76 (f) "Political subdivision" means a county, municipality,
77 department, commission, district, board, or other public body,
78 whether corporate or otherwise, created by or under state law.
79 (g) "Wage" means that compensation for employment to which
80 any state or federal minimum wage applies.
81 (2) Except as otherwise provided in subsection (3), a
82 political subdivision may not establish, mandate, or otherwise
83 require an employer to pay a minimum wage, other than a state or
84 federal minimum wage, to apply a state or federal minimum wage
85 to wages exempt from a state or federal minimum wage, or to
86 offer a condition of employment that is provide employment
87 benefits not otherwise required by state or federal law. The
88 regulation of conditions of employment is expressly preempted to
89 the state.
90 (3) This section does not:
91 (a) Limit the authority of a political subdivision to
92 establish a minimum wage other than a state or federal minimum
93 wage or to require a condition of employment provide employment
94 benefits not otherwise required under state or federal law:
95 1. For the employees of the political subdivision;
9'6 2. For the employees of an employer contracting to provide
97 goods or services for the political subdivision, or for the
98 employees of a subcontractor of such an employer, under the
99 terms of a contract with the political subdivision; or
100 3. For the employees of an employer receiving a direct tax

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FLORIDA H O U S E 0 F REPRESENTATIVES

HB 305 2020

101 abatement or subsidy from the political subdivision, as a
102 condition of the direct tax abatement or subsidy.
103 (b) Apply to a domestic violence or sexual abuse
104 ordinance, order, rule, or policy adopted by a political
105 subdivision.
106 (4) If it is determined by the officer or agency
107 responsible for distributing federal funds to a political
108 subdivision that compliance with this act would prevent receipt
109 of those federal funds, or would otherwise be inconsistent with
110 federal requirements pertaining to such funds, then this act
111 does not apply, but only to the extent necessary to allow
112 receipt of the federal funds or to eliminate the inconsistency
113 with such federal requirements.
114 (5) This section does not prohibit a federally authorized
115 and recognized tribal government from establishing conditions of
116 employment for any requiring eFRployFRent benefits for a person
117 employed within a territory over which the tribe has
118 jurisdiction.
119 Section 2. Any existing ordinance, regulation, or policy
120 of a political subdivision that is preempted by this act is
121 void.
122 Section 3. This act shall take effect upon becoming a law.

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hb0305-00
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 717 Space Florida Financing
SPONSOR(S): Sirois
TIED BILLS: IDEN./SIM. BILLS: SB 1070

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Workforce Development & Tourism
Subcommittee
Willson ,J\11\J Barry "1J8
2) Ways & Means Committee

3) Commerce Committee

SUMMARY ANALYSIS
Established by the Legislature in 2006, Space Florida was created to promote aerospace business
development by facilitating business and infrastructure financing, spaceport operations, research and
development, workforce development and innovative education programs. Space Florida is an independent
special district which covers the entire state.

Current law authorizes Space Florida to issue bonds and other obligations to pay for projects, facilities,
services, and other activities, including the retirement or refunding of existing bonds and obligations.

The bill amends or repeals a number of financing provisions within the Space Florida Act (Part II, Ch. 331,
F.S.). Specifically, the bill clarifies certain definitions, removes the requirement that the Governor and Cabinet
must approve Space Florida's bond proposals, specifies that revenue bonds issued by Space Florida may not
constitute an indebtedness of Space Florida and may not be secured by state appropriations, reduces the
maximum length to maturity for bonds, and allows Space Florida to validate its bonds pursuant to Ch. 75, F.S.

The bill does not appear to have a fiscal impact on state or local government.

The bill provides an effective date of July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Present Situation

Space Florida

Space Florida was established by the Legislature in 2006 to consolidate Florida's three existing space
entities, namely the Florida Space Authority, the Florida Space Research Institute, and the Florida
Aerospace Finance Corporation, into a single organization. 1 Space Florida was created to promote
aerospace business development by facilitating business and infrastructure financing, spaceport
operations, research and development, workforce development and innovative education programs. 2
Space Florida acts as the single point of contact for state aerospace-related activities with federal
agencies, the military, state agencies, businesses, and the private sector. 3

Space Florida is an independent special district and a subdivision of the state. The boundary and
services area for the Space Florida special district covers the entire state. Space Florida is subject to
the provisions of the Uniform Special District Accountability Act, to the extent that the provisions of that
act do not conflict with the Space Florida Act. 4

Special Districts

In 1989, the Legislature passed the Uniform Special District Accountability Act. 5 This Act sets forth the
general provisions for all special districts, addressing such provisions as the creation, operation,
financial reporting, taxation, assessments, elections, definitions, compliance with general law
provisions, and comprehensive planning of special districts. Like municipalities and counties, special
districts generally do not pay sales tax on goods and services and may be able to finance with tax-
exempt bonds issued at reduced interest rates.

Generally, the charter creating an independent special district must contain the following information:
• The purpose of the special district;
• The powers, functions and duties of the special district relating to ad valorem taxes, bonds and
other revenue-raising abilities, budget preparation and approval, liens and lien foreclosures, and
the use of tax deeds and certificates for non-ad valorem assessments and contractual
agreements;
• Method for establishing the district and amending the district charter;
• The membership, organization, compensation, and administrative duties of the governing board
and its members;
• Applicable financial disclosure, noticing, and reporting requirements;
• Procedures and requirements for bond issues, if the special district will issue bonds;
• Election procedures and requirements;
• Method for financing the district;
• Authorized millage rate, and methods for collecting non-ad valorem assessments, fees, or
service charges;
• Planning requirements; and

1 SPACE FLORIDA, Open Government, https://www.spaceflorida.gov/about/open-government/ (last visited Jan. 9, 2020).
2 See S. 331.302, F.S.
3 S. 331.3011, F.S.
4 Ss. 331.301-331.371, F.S.
s Ch. 189, F.S.
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• District boundaries.

Debt Financing and Space Florida

Current law authorizes Space Florida to issue revenue bonds, assessment bonds, or any other bonds
or obligations authorized by law, and to provide for the retirement or refunding of any bonds or
obligations of Space Florida. Space Florida is allowed to pay for the acquisition, construction,
reconstruction, extension, repair, improvement, or maintenance of any project, including payloads and
space flight hardware, equipment for research, development, and educational activities, and to provide
for any facility, service or other activity of Space Florida. 6

Revenue bonds may be secured by the rates, fees, rentals, tolls, fares, or other charges to be collected
from the users of any project, from any revenue-producing undertaking or activity of Space Florida, or
from any source of pledged security. 7 Revenue bonds do not constitute an indebtedness of Space
Florida unless they are additionally secured by the full faith and credit of Space Florida. 8

Space Florida may also issue refunding bonds, bond anticipation notes, 9 obtain loans, and issue debt
to pay for costs and expenses. 10 Space Florida is authorized to pledge its full faith and credit as
additional security for the payment of any bonds that it issues. 11

Space Florida must provide 14 days' notice to the presiding officers and appropriations chairs of both
houses of the Legislature prior to presenting a bond proposal to the Governor and Cabinet. If either
presiding officer or appropriations chair objects to the bonding proposal within the 14-day-notice period,
the bond issuance may be approved only by a vote of three-fourths of the members of the Governor
and Cabinet. 12

Effect of the Bill

The bill amends s. 331.302, F.S., to clarify the definition of the term "bonds".

The bill amends s. 331.305, F.S., to remove the requirement that the Legislature must be notified and
that the Governor and Cabinet must approve Space Florida's bond proposals.

The bill amends s. 331.331, F.S., to specify that revenue bonds issued by Space Florida may not
constitute an indebtedness of Space Florida and may not be secured by state appropriations.

The bill repeals s. 331.334, F.S., relating to the pledging of assessments and other revenues and
properties as additional security on bonds by Space Florida.

The bill repeals s. 331.336, F.S., relating to the issuance of bond anticipation notes by Space Florida.

The bill repeals s. 331.337, F.S., relating to short-term borrowing by Space Florida.

The bill amends s. 331.340, F.S., reducing the maturity date for bonds issued by Space Florida from 40
years to 30 years from the date of issuance.

The bill amends s. 331.346, F.S., to allow Space Florida to validate its bonds pursuant to Ch. 75, F.S.

6 S. 331.305(20), F.S.

7 S. 331.331, F.S.
8
S. 331.331(2), F.S.
9 S. 331.336, F.S.
10 S. 331.337, F.S.
11 S. 331.334, F.S.
12 S. 331.305(20), F.S.
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B. SECTION DIRECTORY:

Section 1 Amends s. 331.302, F.S.; specifying bonding provisions to which Space Florida is subject

Section 2 Amends s. 331.303, F.S.; revising the definition of the term "bonds".

Section 3 Amends s. 331.305, F.S.; revising powers of Space Florida regarding bond issuance;
deleting provisions regarding Legislative review of bond proposals, and presentation of
bond proposals to, and approval of bond issuance by, the Governor and Cabinet.

Section 4 Amends s. 331.331, F.S.; revising provisions relating to securing the issuance of revenue
bonds.

Section 5 Repeals s. 331.334, F.S., relating to pledging assessments and other revenues and
properties as additional security on bonds; s. 331.336, F.S., relating to issuance of bond
anticipation notes; ands. 331.337, F.S., relating to short-term borrowing.

Section 6 Amends s. 331.335, F.S.; revising provisions relating to lien of pledges.

Section 7 Amends s. 331.340, F.S.; revising bond maturity date requirements.

Section 8 Amends s. 331.346, F.S.; authorizing Space Florida to validate bonds pursuant to certain
provisions.

Section 9 Provides for an effective date.

11. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may result in a positive direct economic impact for businesses that are involved in activities
financed by Space Florida as the conduit issuer of the debt.

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DATE: 1/13/2020
D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The bill does not appear to create a need for rulemaking or rulemaking authority.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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DATE: 1/13/2020
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 717 2020

1 A bill to be entitled
2 An act relating to Space Florida financing; amending
3 s. 331.302, F.S.; specifying bonding provisions to
4 which Space Florida is subject; amending s. 331.303,
5 F.S.; revising the definition of the term "bonds";
6 amending s. 331.305, F.S.; revising powers of Space
7 Florida regarding bond issuance; deleting provisions
8 regarding presentation of bond proposals to, and
9 approval of bond issuance by, the Governor and
10 Cabinet; amending s. 331.331, F.S.; revising
11 provisions relating to securing the issuance of
12 revenue bonds; repealing s. 331.334, F.S., relating to
13 pledging assessments and other revenues and properties
14 as additional security on bonds; repealing s. 331.336,
15 F.S., relating to issuance of bond anticipation notes;
16 repealing s. 331.337, F.S., relating to short-term
17 borrowing; amending s. 331.335, F.S.; revising
18 provisions relating to lien of pledges; amending s.
19 331.340, F.S.; revising bond maturity date
20 requirements; amending s. 331.346, F.S.; authorizing
21 Space Florida to validate bonds pursuant to certain
22 provisions; providing an effective date.
23
24 Be It Enacted by the Legislature of the State of Florida:
25

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26 Section 1. Subsection (5) of section 331.302, Florida
27 Statutes, is amended to read:
28 331.302 Space Florida; creation; purpose.-
29 (5) Space Florida is subject to applicable provisions of
30 chapter 189, including, but not limited to, s. 189.051. To the
31 extent that any provisions of chapter 189 conflict with this
32 act, this act shall prevail.
33 Section 2. Subsection (3) of section 331.303, Florida
34 Statutes, is amended to read:
35 331.303 Definitions.-
36 (3) "Bonds" means revenue bonds or other evidences of
37 indebtedness, including bank loans, assessment bonds, or other
38 bonds or obligations issued by Space Florida for the purpose of
39 raising financing for its projects.
40 Section 3. Subsection (20) of section 331.305, Florida
41 Statutes, is amended to read:
42 331.305 Powers of Space Florida.-Space Florida may:
43 (20) Issue revenue bonds or other evidences of
44 indebtedness, including bank loans, assessment bonds, or any
45 other bonds or obligations authorized by the provisions of this
46 act or any other law, or any eombination of the foregoing, and
47 pay all or part of the cost of the acquisition, construction,
48 reconstruction, extension, repair, improvement, or maintenance
49 of any project or combination of projects, including payloads
50 and space flight hardware, and equipment for research,

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51 development, and educational activities, to provide for any
52 facility, service, or other activity of Space Florida, and
53 provide for the retirement or refunding of any bonds or
54 obligations of Space Florida, or for any combination of the
55 foregoing purposes. Space Florida ffiust provide 14 days' notice
56 to the presiding officers and appropriations chairs of both
57 houses of the Legislature prior to presenting a bond proposal to
58 the Governor and Cabinet. If either presiding officer or
59 appropriations chair objects to the bonding proposal within the
60 14 day notice period, the bond issuance ffiay be approved only by
61 a vote of three fourths of the ffiefflbers of the Governor and
62 Cabinet.
63 Section 4. Subsection (2) of section 331.331, Florida
64 Statutes, is amended to read:
65 331.331 Revenue bonds.-
66 (2} The issuance of revenue bonds may be secured by or
67 payable from the gross or net pledge of the revenues to be
68 derived from any project or combination of projects~7 from the
69 rates, fees, rentals, tolls, fares, assessments, or other
70 charges to be collected from the users of any project or
71 projects; from any revenue-producing undertaking or activity of
72 Space Florida; or from any source of pledged security other than
73 state appropriations. Such bonds are shall not constitute an
74 indebtedness of Space Florida unless ouch bonds are additionally
75 secured by the full faith and credit of Space Florida. Bonds

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76 issued by Space Florida are not secured by the full faith and
77 credit of the State of Florida and do not constitute an
78 obligation, either general or special, thereof.
79 Section 5. Sections 331.334, 331.336, and 331.337, Florida
80 Statutes, are repealed.
81 Section 6. Section 331.335, Florida Statutes, is amended
82 to read:
83 331.335 Lien of pledges.-All pledges of revenues afT€l
84 assessments made pursuant to the provisions of this act shall be
85 valid and binding from the time when such pledges are made. All
86 such revenues and aooeooments so pledged and thereafter
87 collected shall immediately be subject to the lien of such
88 pledges without any physical delivery thereof or further action,
89 and the lien of such pledges shall be valid and binding as
90 against all parties having claims of any kind in tort, contract,
91 or otherwise against Space Florida, irrespective of whether such
92 parties have notice thereof.
93 Section 7. Section 331.340, Florida Statutes, is amended
94 to read:
95 331.340 Authorization and form of bonds.-Bonds may be
96 authorized by resolution or resolutions of the board which are
97 shall be adopted by a majority of all of the members thereof
98 then in office and present at the meeting at which the
99 resolution or resolutions are adopted and shall be approved as
100 provided ins. 331.305. The resolution or resolutions of the

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101 board may be adopted at the same meeting at which they are
102 introduced7 and shall be published and noticed. The board may by
103 resolution authorize the issuance of bonds and determine, fin
104 the aggregate amount of bonds to be issued, the purpose or
105 purposes for which the moneys derived therefrom shall be
106 expanded, the rate or rates of interest, the denomination of the
107 bonds, whether or not the bonds are to be issued in one or more
108 series, the date or dates thereof, the date or dates of
109 maturity, which shall not exceed 30 48- years from their
110 respective dates of issuance, the medium of payment, the place
111 or places within or without the state where payment shall be
112 made, registration privileges, redemption terms and privileges
113 (whether with or without premium), the manner of execution, the
114 form of the bonds including any interest coupons to be attached
115 thereto, the manner of execution of bonds and coupons, and any
116 and all other terms, covenants, and conditions thereof, and the
117 establishment of reserve or other funds. Such authorizing
118 resolution may further provide that such bonds may be executed
119 manually or by engraved, lithographed, or facsimile signature,
120 provided that where signatures are engraved, lithographed, or
121 facsimile~ H-e bond shall not be valid unless countersigned by
122 a registrar or other officer designated by appropriate
123 resolution of the board. The seal of Space Florida may be
124 affixed, lithographed, engraved, or otherwise reproduced in
125 facsimile on such bonds. In case any officer whose signature or

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126 a facsimile of whose signature appears shall appear on any bonds
127 or coupons ceases shall cease to be such officer before the
128 delivery of such bonds, such signature or facsimile is shall
129 nevertheless ee valid and sufficient for all purposes the same
130 as if the officer had remained in office until such delivery.
131 Section 8. Section 331.346, Florida Statutes, is amended
132 to read:
133 331.346 Validity of bonds; validation proceedings.-Any
134 bonds issued by Space Florida shall be incontestable in the
135 hands of bona fide purchasers or holders for value and shall not
136 be invalid because of any irregularity or defect in the
137 proceedings for the issue and sale thereof. Before Prior to the
138 issuance of any bonds, Space Florida shall publish a notice at
139 least once in a newspaper or newspapers published or of general
140 circulation in the appropriate counties in the state, stating
141 the date of adoption of the resolution authorizing such
142 obligations, the amount, maximum rate of interest, and maturity
143 of such obligations, and the purpose in general terms for which
144 such obligations are to be issued, and further stating that no
145 action or proceeding questioning the validity of such
146 obligations or of the proceedings authorizing the issuance
147 thereof, or of any covenants made therein, must be instituted
148 within 20 days after the first publication of such notice, or
149 the validity of such obligations, proceedings, and covenants
150 shall not be thereafter questioned in any court whatsoever. If

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151 no such action or proceeding is so instituted within such 20-day
152 period, then the validity of such obligations, proceedings, and
153 covenants shall be conclusive, and all persons or parties
154 whatsoever shall be forever barred from questioning the validity
155 of such obligations, proceedings, or covenants in any court
156 whatsoever. Alternatively, Space Florida may validate its bonds
157 pursuant to chapter 75.
158 Section 9. This act shall take effect July 1, 2020.

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