Commerce Tourism — 2020 Regular Session Customized Agenda Order (01/21/2020)
Summary
Post meeting packet for the Commerce and Tourism committee of the Florida Senate, 2020 Regular Session, for its meeting of 01/21/2020 (10:00 AM - 11:30 AM). The agenda lists SB 666 by Mayfield (Florida Development Finance Corporation), SB 1112 by Taddeo (Bottled Water Excise Tax), SB 1244 by Albritton (State Workforce Development Boards) and SB 922 by Gruters (Economic Development). The bill analysis of CS/SB 666 states that the bill modifies the governance and administration of the Florida Development Finance Corporation, including a sunset repeal effective October 1, 2022. A letter dated January 21, 2020, to Chairman Gruters, headed Vote After Roll Call, records Yes votes on SB 666 and SB 922.
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01/21/2020 - Commerce Tourism (10:00 AM - 11:30 AM) 2020 Regular Session
Customized 01/28/2020 4:08 PM
Agenda Order
Tab 1 SB 666 by Mayfield; Florida Development Finance Corporation
139688 A S RCS CM, Mayfield Delete L.79 - 114: 01/21 01:53 PM
Tab 2 SB 1112 by Taddeo (CO-INTRODUCERS) Stewart; (Identical to H 00861) Bottled Water Excise Tax
689478 D S UNFAV CM, Gruters Delete everything after 01/21 01:54 PM
840230 A S FAV CM, Taddeo Delete L.65 - 186: 01/21 01:54 PM
Tab 3 SB 1244 by Albritton; (Compare to H 01271) State Workforce Development Boards
SB 1310 by Mayfield (CO-INTRODUCERS) Hutson; (Compare to H 00777) Hunting and Fishing Sales Tax
Tab 4
Holiday
876374 A S CM, Mayfield Delete L.39: 01/17 09:43 AM
Tab 5 SB 922 by Gruters; (Similar to H 00779) Economic Development
818472 A S RCS CM, Gruters btw L.114 - 115: 01/21 01:54 PM
694026 A S RCS CM, Gruters btw L.114 - 115: 01/21 01:54 PM
460038 AA S RCS CM, Gruters Delete L.10: 01/21 01:54 PM
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The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: CS/SB 666
INTRODUCER: Commerce and Tourism Committee and Senator Mayfield
SUBJECT: Florida Development Finance Corporation
DATE: January 21, 2020 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Harmsen McKay CM Fav/CS
2. GO
3. RC
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 666 modifies the governance and administration of the Florida Development Finance
Corporation (FDFC) by:
Requiring the FDFC and Department of Economic Opportunity (DEO) to provide additional
annual reporting on the FDFC’s activities;
Redesigning the FDFC’s board of directors to include the executive director of the DEO,
who will serve as the chair of the board, and the director of the State Board of
Administration’s Division of Bond Finance; and
Instituting a sunset repeal, effective October 1, 2022, and every four years thereafter, unless
reviewed and saved from repeal by the Legislature.
II. Present Situation:
Florida Development Finance Corporation
Operation
The FDFC is a statewide development financing authority created by the Legislature in 1993.1
The original purpose of the FDFC was to foster the growth of manufacturing and other strong
1
Chapter 288, Part X, F.S. The corporation was created as a “public body corporate and politic” meaning that it is a legal
entity or corporation with a public function. Ch. 93-187, ss. 24-45, Laws of Fla.
BILL: CS/SB 666 Page 2
job-creating businesses in Florida by brokering private-activity bond financing through inter-
local agreements with counties, municipalities, and other local political subdivisions.2
In the 2010 legislative session, the FDFC’s responsibilities were broadened to allow it to
participate in a federal Department of Energy guaranteed loan program for the development of
renewable energy infrastructure projects, and related energy projects that may be eligible under
federal law.3 The FDFC has the power to function within the corporate limits of any public
agency including local governments with which it enters into an inter-local agreement.4
Pursuant to s. 288.9605, F.S., the FDFC operates as a conduit bond issuer that issues bonds on
behalf of borrowers.5 While the FDFC functions as a mechanism to help borrowers access capital
markets, it does not take on responsibility of debt repayment, even when a borrower fails to
repay.6 Conversely, the FDFC does not guarantee the bonds it issues but certain borrowers may
opt in to the guaranty fund established by the FDFC pursuant to s. 288.9607, F.S., which
guarantees that the bonds issued will be repaid. This guaranty fund consists of premiums paid by
businesses that wish to participate in the fund and by a property interest in the infrastructure built
with the insured bond’s proceeds.7
A majority of the FDFC’s financial assistance results from the issuance of municipal bonds, of
which it may issue either a taxable revenue bond or a tax-exempt bond.8 The bonds issued can
provide financing for projects that further public purposes and are issued on behalf of a range of
organizations.
Tax exempt bonds, known also as Private Activity Bonds, require additional borrower
qualification processes, including approval pursuant to the Tax Equity and Fiscal Responsibility
Act of 1986 (TEFRA) and allocation from the Florida State Board of Administration’s Division
of Bond Finance. These bonds are more lucrative financing options because they tend to have a
lower interest rate than bank loans or taxable fixed-income securities, and investors benefit by
not paying income taxes on interest payments.9 The FDFC helps its borrowers pursue Private
Activity Bonds by assisting them with the additional qualification processes.10
In the fiscal year ending June 30, 2019, the FDFC facilitated the issuance of $2,885,710,000 in
eight new money bonds. The borrowers served by these bonds include two charter schools, one
2
Section 288.9602, F.S., generally expresses the legislative intent of the FDFC.
3
Sections 2-10, ch. 2010-139, Laws of Fla.
4
Section 288.9605(2)(e), F.S.
5
“[The] FDFC facilitated the issuance of debt obligations…[t]hese bonds do not constitute a general debt, liability or
obligation of FDFC, the state, or any local government.” Florida Development Finance Corporation, Financial Statements for
the Year Ended June 30, 2019, 12 (on file with the Senate Committee on Commerce and Tourism). See also, Florida
Development Finance Corporation, Bond Financing, https://www.fdfcbonds.com/traditional-bonds (last visited Jan. 21,
2020).
6
Id.
7
The guaranty may not exceed 5 percent of the aggregate principal amount of bonds or other indebtedness relating to any
capital project. Section 288.9607, F.S.
8
Florida Development Finance Corporation, About Us, https://www.fdfcbonds.com/copy-of-about-us (last visited Jan. 21,
2020).
9
Steven Maguire and Joseph Hughes, Congressional Research Service, Private Activity Bonds: An Introduction (July 13,
2018), available at https://fas.org/sgp/crs/misc/RL31457.pdf (last visited Jan. 21, 2020).
10
Florida Development Finance Corporation, Bond Financing, note 5.
BILL: CS/SB 666 Page 3
solid waste disposal, two surface transportation, one healthcare, one student housing, and one
not-for-profit business.11
More generally, an applicant who wishes to work with the FDFC must submit an application,
meet board approval for its project, and in cases of tax-exempt bonds, undergo a public hearing
and receive approval from the State Board of Administration’s Division of Bond Finance, and
then have bonds issued for its project. (See exhibit below).12
•Borrower submits application.
•FDFC reviews application for completeness.
Application •FDFC conducts analysis of project eligibility.
Submission •Borrower applies for Private Activity Bond Allocation.
•Borrower presents project to the FDFC Board.
Initial Board •FDFC may reject the project.
Meeting
•FDFC notices and conducts public hearing.
•TEFRA information packet sent to the Division of Bond Finance.
TEFRA
Process (if •Division provides approval.
bond is tax-
exempt)
•Borrower prepares bond documents.
Final FDFC •FDFC provides overview of bond financing and documents.
Board •Board votes to approve or deny bond resolution.
Meeting
•Borrower requests Private Activity Bond Amount from Division of Bond
Finance.
Private
Activity Bond •Division of Bond Finance approves Private Activity Bond Amount.
Approval
•Preliminary offering documents are released to potential buyers.
•Final offering documents are updated for pricing and released.
•Documents are fully executed.
Closing •Confirmation of transaction and payment to all parties.
11
Florida Development Finance Corporation Financial Statements for the Year Ended June 30, 2019, supra note 5 at 3.
12
OPPAGA, Florida Development Finance Corporation has Recently Taken Steps to Improve Accountability (Nov. 15,
2017) (on file with the Senate Committee on Commerce and Tourism).
BILL: CS/SB 666 Page 4
The FDFC also administers the Property Assessed Clean Energy (PACE) program, for which it
also may issue bonds and other financial assistance that supports energy conservation.13 The
PACE Program was launched June 29, 2017 and allows a property owner to use equity accrued
from the original purchase as the basis for an extension of credit.14 The PACE Program
facilitated $19,353,886 in five taxable residential bonds for the 2019 fiscal year.15
FDFC’s revenues are generated exclusively by fees it charges for the issuance of bonds. 16 The
fees assessed are a $1,500 application fee and a tiered issuance fee due at the time of closing
(sale of bonds). The tiered issuance fee is based on the face value of the bond issued: bonds
valued from $0 -$2.5 million pay 75 basis points (0.75%); bonds valued from $2.5-$32.5 million
pay 25 basis points (0.25%); and bonds valued over $32.5 million pay 10 basis points (0.10%).17
Governance and Administration
The FDFC is governed by a five-member board of directors who are appointed by the Governor
and confirmed by the Senate for four-year terms.18 At least three of the FDFC’s directors must be
bankers selected from a list of candidates nominated by the Enterprise Florida, Inc. (EFI), and
one must be an economic development specialist.19 The directors are vested with the FDFC’s
powers, and may take action on behalf of the corporation by a vote of a majority of the directors
present at a meeting, unless otherwise required by the FDFC’s bylaws.20 The directors do not
receive compensation for their service, but are entitled to necessary expenses, including travel
expenses.21 Lastly, the board is empowered to employ a staff to facilitate the FDFC’s functions.22
The FDFC must provide an annual report to the Governor, the Legislature, the Auditor General,
and the governing body of each public entity with which it has an interlocal agreement which
details:
The FDFC’s activities, operations, and accomplishments, including the specific number of
businesses that the FDFC assisted;
The FDFC’s assets, liabilities, income, and operating expenses, including a description of all
outstanding revenue bonds; and
Any findings made by the Auditor General in an audit conducted pursuant to s. 11.45, F.S.
13
Florida Development Finance Corporation, Property Assessed Clean Energy “PACE”- Commercial PACE,
https://www.fdfcbonds.com/pace-commerical (last visited Jan. 21, 2020). See also, s. 288.9606(7), F.S.
14
Id.
15
Florida Development Finance Corporation, Financial Statements for the Year Ended June 30, 2019, supra note 5 at 3.
16
Florida Development Finance Corporation, Financial Statements for the Year Ended June 30, 2019, supra note 5 at 6.
17
Florida Development Finance Corporation, Conduit Issuance Policy, 6-7 (Feb. 26, 2019), available at https://ca5cce56-
0e6c-4988-82a7-74892bf1d07e.filesusr.com/ugd/b1b27e_0b227d45ff2b4e139bb36f2846f70b4b.pdf (last visited Jan. 21,
2020).
18
Section 288.9604(2), F.S.
19
Section 288.9604(2), F.S.
20
Section 288.9604(3), F.S.
21
Section 288.9604(3)(a)1., F.S.
22
Section 288.9604(3)(c), F.S.
BILL: CS/SB 666 Page 5
Department of Economic Opportunity
The Department of Economic Opportunity (DEO) was created to assist the Governor in working
with the Legislature, state agencies, business leaders, and economic development professionals
to formulate and implement coherent and consistent policies and strategies designed to promote
economic opportunities for all Floridians.23 Within the DEO, the Division of Strategic Business
Development evaluates business prospects; administers tax refund, tax credit, and grant
programs; develops performance measures for state incentive programs and contracted entities;
and develops and updates a 5-year statewide strategic plan for business expansion and economic
development, consulting with EFI and CareerSource Florida, Inc. (CareerSource). The Division
of Community Development assists local governments with community planning, administers
state and federal community development grant programs, and assists in the development of the
5-year statewide strategic plan. The Division of Workforce Services submits a unified budget
request for workforce development in conjunction with CareerSource, ensures that the state
appropriately administers federal and state workforce funding, implements the state’s
reemployment assistance program, and assists in developing the 5-year statewide strategic plan.24
The DEO, with assistance from EFI, must, by November 1 of each year, submit an annual report
to the Governor, the President of the Senate, and the Speaker of the House of Representatives on
the condition of the business climate and economic development in the state. The report must
include the identification of problems, a prioritized list of recommendations, and the annual
reports of specified other programs.25 The DEO must establish annual performance standards for
EFI, CareerSource, VISIT FLORIDA, and Space Florida, and report annually on how these
performance measures are being met in the annual report.26
The head of the DEO is the executive director, who is appointed by the Governor, subject to
confirmation by the Senate. The executive director serves at the pleasure of and reports to the
Governor.27 The executive director manages all activities and responsibilities of the DEO, and
serves as the manager for the state with respect to contracts with EFI, and all applicable direct-
support organizations.28
The Division of Bond Finance
The Division of Bond Finance (Division) was created by the Legislature in 1969 to issue bonds
on behalf of local governments and agencies of the State of Florida. It assumed the powers of its
predecessor, the Florida Development Commission. The Division has been administratively
housed within the State Board of Administration since 1992, and operates under the control of a
governing board which consists of the Governor and Cabinet.29 The Division has the power to:
Sue and be sued;
Issue any bonds of the state, and to issue bonds on behalf of any state agency;
23
Section 20.60(4), F.S.
24
Section 20.60(5), F.S.
25
Section 20.60(10), F.S.
26
Section 20.60(11), F.S.
27
Section 20.60(2), F.S.
28
Section 20.60(9), F.S.
29
Information from https://www.sbafla.com/bond/Home/About-the-Division-of-Bond-Finance, last visited January 21, 2020.
BILL: CS/SB 666 Page 6
Exercise all of the powers relating to the issuance of bonds of any state agency;
Employ a director of the division to be designated by the Governor;
Employ or retain persons, firms, or corporations;
Prepare resolutions and other necessary proceedings relating to the issuance and sale of
bonds;
Sell all state bonds authorized by law;
Request assistance related to bond issuance from any state agency;
Exercise the power of eminent domain;
Remit the proceeds of any bonds sold for any state agency;
Exercise control over the state’s arbitrage compliance program; and
Undertake investigations.30
The Division also determines the allocations for private activity bonds permitted to be issued in
Florida under the Internal Revenue Code.31
III. Effect of Proposed Changes:
Board of Directors
The bill reconstructs the FDFC board to add two new seats that will be filled by the DEO’s
executive director, or his or her designee, who will serve as chair of the board, and the State
Board of Administration’s director of the Division of Bond Finance, or his or her designee, who
will serve as a board director. The bill makes conforming changes to s. 288.9604, F.S., to
transition the remaining five board seats, which are filled by gubernatorial appointees, to board
director roles exclusively. Specifically, those members who serve as the chair and vice chair of
the FDFC’s board of directors as of June 30, 2020, will lose their titles and serve as regular
directors beginning on July 1, 2020.
The bill also broadens the board of director eligibility requirement to allow three of the
appointed board directors to be either a banker, or an individual with experience in finance.
Additionally, the bill removes the role of the EFI from the appointment process, thereby allowing
individuals to apply directly to the Governor or FDFC to serve as board directors, rather than
going through a nomination process that involves the EFI.
Reporting Requirements
The bill requires the FDFC to furnish a copy of its annual report to the DEO on or before 90 days
after the close of its fiscal year. Additionally, the bill amends the DEO’s annual reporting
requirement in s. 20.60, F.S., to require the Department to include both a summary of the
FDFC’s annual report and an additional detailed report on the FDFC’s performance in its own
annual report, due on November 1 of each year to the Governor, Senate President, and Speaker
of the House of Representatives.
30
Section 215.64, F.S.
31
Section 159.804, F.S. See also, Division of Bond Finance, Tax Equity and Fiscal Responsibility Act (TEFRA) Approval,
https://www.sbafla.com/bondfinance/Other-Functions/TEFRA, last visited Jan. 21, 2020.
BILL: CS/SB 666 Page 7
Effective Date and Sunset Provision
The bill takes effect on July 1, 2020, and is subject to sunset on October 1, 2022, and every
fourth year thereafter, unless reviewed and saved from repeal by the Legislature.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
BILL: CS/SB 666 Page 8
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 20.60, 288.9604,
and 288.9610. The bill also creates an unnumbered section of law.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism on January 21, 2020:
Substituted “directors” for the term “members” to provide for consistent use of
terminology; and
Removed from the bill the transfer of the FDFC’s officers, employees, and
administrative and support staff to the DEO.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 666
Ì139688gÎ139688
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
01/21/2020 .
.
.
.
The Committee on Commerce and Tourism (Mayfield) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 79 - 114
4 and insert:
5 of seven directors. The executive director of the department, or
6 his or her designee, shall serve as chair of the board of
7 directors of the corporation. The director of the Division of
8 Bond Finance of the State Board of Administration, or his or her
9 designee, shall serve as a director of the board of directors of
10 the corporation. The Governor, subject to confirmation by the
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Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 666
Ì139688gÎ139688
11 Senate, shall appoint the remaining five directors of the board
12 of directors of the corporation, who shall be five in number.
13 The terms of office for the appointed directors shall be for 4
14 years from the date of their appointment. A vacancy occurring
15 during a term of an appointed director shall be filled for the
16 unexpired term. A director shall be eligible for reappointment.
17 At least three of the appointed directors of the corporation
18 shall be bankers or individuals with experience in finance who
19 have been selected by the Governor from a list of bankers who
20 were nominated by Enterprise Florida, Inc., and one of the
21 directors shall be an economic development specialist.
22 (3)(a)1. A director may not receive compensation for his or
23 her services, but is entitled to necessary expenses, including
24 travel expenses, incurred in the discharge of his or her duties.
25 Each appointed director shall hold office until his or her
26 successor has been appointed.
27 2. Directors are subject to ss. 112.313(1)-(8), (10), (12),
28 and (15); 112.3135; and 112.3143(2). For purposes of applying
29 ss. 112.313(1)-(8), (10), (12), and (15); 112.3135; and
30 112.3143(2) to activities of directors, directors shall be
31 considered public officers and the corporation shall be
32 considered their agency.
33 (c) The directors of the corporation shall annually elect
34 one of their members as chair and one as vice chair. The
35 corporation may employ a president, technical experts, and such
36 other agents and employees, permanent and temporary, as it
37 requires and determine their qualifications, duties, and
38 compensation. For such legal services as it
39
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Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 666
Ì139688gÎ139688
40 ================= T I T L E A M E N D M E N T ================
41 And the title is amended as follows:
42 Delete lines 19 - 22
43 and insert:
44 corporation; making conforming changes; providing for
45 future repeals;
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1/21/2020 8:00:59 AM 577-02351-20
Florida Senate - 2020 SB 666 Florida Senate - 2020 SB 666
By Senator Mayfield
17-00208C-20 2020666__ 17-00208C-20 2020666__
1 A bill to be entitled 30 agreements; providing an effective date.
2 An act relating to the Florida Development Finance 31
3 Corporation; amending s. 20.60, F.S.; requiring the 32 Be It Enacted by the Legislature of the State of Florida:
4 executive director of the Department of Economic 33
5 Opportunity to serve as the chair of the board of 34 Section 1. Paragraph (c) is added to subsection (9) of
6 directors of the Florida Development Finance 35 section 20.60, Florida Statutes, and paragraph (b) of subsection
7 Corporation; requiring that the annual report of the 36 (10) and subsection (11) of that section are amended, to read:
8 corporation be incorporated into the department’s 37 20.60 Department of Economic Opportunity; creation; powers
9 annual report on the condition of the business climate 38 and duties.—
10 and economic development in the state; requiring the 39 (9) The executive director shall:
11 department to develop performance standards for the 40 (c) Serve as the chair of the board of directors of the
12 corporation and include certain information relating 41 Florida Development Finance Corporation.
13 to the standards in the department’s annual report; 42 (10) The department, with assistance from Enterprise
14 amending s. 288.9604, F.S.; revising the membership of 43 Florida, Inc., shall, by November 1 of each year, submit an
15 the board of directors of the corporation; requiring 44 annual report to the Governor, the President of the Senate, and
16 that the director of the Division of Bond Finance of 45 the Speaker of the House of Representatives on the condition of
17 the State Board of Administration, or his or her 46 the business climate and economic development in the state.
18 designee, serve on the board of directors of the 47 (b) The report must incorporate annual reports of other
19 corporation; making conforming changes; specifying 48 programs, including:
20 that all officers, employees, and administrative and 49 1. Information provided by the Department of Revenue under
21 support staff for the corporation shall be employees 50 s. 290.014.
22 of the department; providing for future repeals; 51 2. Information provided by enterprise zone development
23 requiring the chair and vice chair of the board of 52 agencies under s. 290.0056 and an analysis of the activities and
24 directors of the corporation to serve as regular 53 accomplishments of each enterprise zone.
25 members of the board after a specified date; providing 54 3. The Economic Gardening Business Loan Pilot Program
26 construction; amending s. 288.9610, F.S.; requiring 55 established under s. 288.1081 and the Economic Gardening
27 the corporation to submit an annual report containing 56 Technical Assistance Pilot Program established under s.
28 specified information to the department; providing for 57 288.1082.
29 the continuation of certain contracts and interlocal 58 4. A detailed report of the performance of the Black
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59 Business Loan Program and a cumulative summary of quarterly 88 from the date of their appointment. A vacancy occurring during a
60 report data required under s. 288.714. 89 term of an appointed director shall be filled for the unexpired
61 5. The Rural Economic Development Initiative established 90 term. A director shall be eligible for reappointment. At least
62 under s. 288.0656. 91 three of the appointed directors of the corporation shall be
63 6. The Florida Unique Abilities Partner Program. 92 bankers or individuals with experience in finance who have been
64 7. A detailed report of the performance of the Florida 93 selected by the Governor from a list of bankers who were
65 Development Finance Corporation and a summary of the 94 nominated by Enterprise Florida, Inc., and one of the directors
66 corporation’s report required under s. 288.9610. 95 shall be an economic development specialist.
67 (11) The department shall establish annual performance 96 (3)(a)1. A director may not receive compensation for his or
68 standards for Enterprise Florida, Inc., CareerSource Florida, 97 her services, but is entitled to necessary expenses, including
69 Inc., the Florida Tourism Industry Marketing Corporation, and 98 travel expenses, incurred in the discharge of his or her duties.
70 Space Florida, and the Florida Development Finance Corporation 99 Each appointed director shall hold office until his or her
71 and report annually on how these performance measures are being 100 successor has been appointed.
72 met in the annual report required under subsection (10). 101 2. Directors are subject to ss. 112.313(1)-(8), (10), (12),
73 Section 2. Subsection (2), paragraphs (a) and (c) of 102 and (15); 112.3135; and 112.3143(2). For purposes of applying
74 subsection (3), and subsection (4) of section 288.9604, Florida 103 ss. 112.313(1)-(8), (10), (12), and (15); 112.3135; and
75 Statutes, are amended, and subsection (5) is added to that 104 112.3143(2) to activities of directors, directors shall be
76 section, to read: 105 considered public officers and the corporation shall be
77 288.9604 Creation of the authority.— 106 considered their agency.
78 (2) The board of directors of the corporation shall consist 107 (c) The directors of the corporation shall annually elect
79 of seven members. The executive director of the department, or 108 one of their members as chair and one as vice chair. The
80 his or her designee, shall serve as chair of the board of 109 corporation may employ a president, technical experts, and such
81 directors of the corporation. The director of the Division of 110 other agents and employees, permanent and temporary, as it
82 Bond Finance of the State Board of Administration, or his or her 111 requires and determine their qualifications, duties, and
83 designee, shall serve as a member of the board of directors of 112 compensation; however, all officers, employees, and
84 the corporation. The Governor, subject to confirmation by the 113 administrative and support staff for the corporation shall be
85 Senate, shall appoint the remaining five members of the board of 114 employees of the department. For such legal services as it
86 directors of the corporation, who shall be five in number. The 115 requires, the corporation may employ or retain its own counsel
87 terms of office for the appointed directors shall be for 4 years 116 and legal staff.
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117 (4) The board may remove an appointed a director for 146 (2) The activities, operations, and accomplishments of the
118 inefficiency, neglect of duty, or misconduct in office. Such 147 Florida Development Finance Corporation, including the number of
119 director may be removed only after a hearing and only if he or 148 businesses assisted by the corporation.
120 she has been given a copy of the charges at least 10 days before 149 (3) Its assets, liabilities, income, and operating expenses
121 such hearing and has had an opportunity to be heard in person or 150 at the end of its most recent fiscal year, including a
122 by counsel. The removal of a director shall create a vacancy on 151 description of all of its outstanding revenue bonds.
123 the board which shall be filled pursuant to subsection (2). 152 Section 5. Any contract or interlocal agreement existing
124 (5) This section is repealed October 1, 2022, and October 1 153 before July 1, 2020, between the Florida Development Finance
125 of every fourth year thereafter, unless reviewed and saved from 154 Corporation, or any entity or agent of the corporation, and any
126 repeal by the Legislature. 155 other entity or person shall continue as a contract or agreement
127 Section 3. In order to implement the changes made by this 156 on the successor department or entity responsible for the
128 act to s. 288.9604, Florida Statutes, the chair and vice chair 157 program, activity, or function relative to the contract or
129 of the board of directors of the Florida Development Finance 158 agreement.
130 Corporation as of June 30, 2020, shall serve as regular members 159 Section 6. This act shall take effect July 1, 2020.
131 beginning July 1, 2020. Nothing in this act may be construed to
132 affect the terms of the directors serving on the board on July
133 1, 2020.
134 Section 4. Section 288.9610, Florida Statutes, is amended
135 to read:
136 288.9610 Annual reports of Florida Development Finance
137 Corporation.—On or before 90 days after the close of the Florida
138 Development Finance Corporation’s fiscal year, the corporation
139 shall submit to the Governor, the Legislature, the Auditor
140 General, the Department of Economic Opportunity, and the
141 governing body of each public entity with which it has entered
142 into an interlocal agreement a complete and detailed report
143 setting forth:
144 (1) The results of any audit conducted pursuant to s.
145 11.45.
Page 5 of 6 Page 6 of 6
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
FLORIDA DEVELOPMENT
FINANCE CORPORATION
FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
And Report of Independent Auditor
FLORIDA DEVELOPMENT FINANCE CORPORATION
TABLE OF CONTENTS
Page
REPORT OF INDEPENDENT AUDITOR ........................................................................................ 1 – 2
MANAGEMENT’S DISCUSSION AND ANALYSIS ..................................................................... 3 – 6
BASIC FINANCIAL STATEMENTS
Statement of Net Position ........................................................................................................................... 7
Statement of Revenues, Expenses and Changes in Net Position .............................................................. 8
Statement of Cash Flows ............................................................................................................................ 9
Notes to Financial Statements ............................................................................................................... 10 – 13
SUPPLEMENTARY REPORT OF INDEPENDENT AUDITOR
Report of Independent Auditor on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards ......................................................................... 14 – 15
Report of Independent Auditor
To the Board of Directors,
Florida Development Finance Corporation:
Report on the Financial Statements
We have audited the accompanying financial statements of Florida Development Finance Corporation
(“FDFC”) as of and for the year ended June 30, 2019 and the related notes to the financial statements, as
listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of Florida Development Finance Corporation as of June 30, 2019, and the respective changes in
financial position and cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Other Matters
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis on pages 3 – 6 be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated September 18,
2019 on our consideration of FDFC’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of
FDFC’s internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering FDFC’s internal control over
financial reporting and compliance.
Orlando, Florida
September 18, 2019
2
MANAGEMENT’S DISCUSSION AND ANALYSIS
FLORIDA DEVELOPMENT FINANCE CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2019
This discussion and analysis of Florida Development Finance Corporation’s (“FDFC”) financial performance
provides an overview of its financial activities for the fiscal year ended June 30, 2019. Please read it in
conjunction with the independent auditor’s report and the basic financial statements.
Financial Highlights
FDFC facilitated the authorization and issuance of $2,885,710,000 in (8) new money bonds for the fiscal year
ending June 30, 2019. The types of borrowers served by the FDFC bond process were charter schools (2),
solid waste disposal (1), surface transportation (2), healthcare (1), student housing (1) and not for profit (1). In
all, the FDFC received application and issuance fees totaling $3,117,760. 85% of these fees came from two
large bond issuances.
In addition, FDFC’s Property Assessed Clean Energy (“PACE”) Program was launched on June 29, 2017 and
the FDFC facilitated the authorization and issuance of $19,353,886 in (5) taxable residential PACE bonds for
the fiscal year ending June 30, 2019. In all, the FDFC received issuance fees totaling $178,378 for the PACE
Program.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to FDFC’s basic financial statements. The
basic financial statements also include notes that explain in more detail some of the information in the financial
statements.
Required Basic Financial Statements
FDFC utilizes an enterprise fund for financial reporting purposes. This fund includes all activities of FDFC.
The financial statements of FDFC report information about FDFC using accounting methods similar to those
used by private sector companies. These statements offer short-term and long-term financial information about
its activities. The statement of net position includes all of FDFC’s assets and liabilities and provides information
about the nature and amounts of investments in resources (assets) and the obligations to FDFC’s creditors
(liabilities). The statement of net position also provides the basis for computing rate of return, evaluating the
capital structure of FDFC and assessing liquidity and financial flexibility of FDFC.
All of the current year’s revenues and expenses are accounted for in the statement of revenues, expenses, and
changes in net position. This statement measures the success of FDFC’s operations over the past year and
can be used to determine whether FDFC has successfully recovered all of its costs through its services
provided, as well as its profitability, and credit worthiness.
The final required financial statement is the statement of cash flows. The primary purpose of this statement is to
provide information about FDFC’s cash receipts and payments during the reporting period. The statement
reports cash receipts, cash payments, and net changes in cash resulting from operating, investing, non-capital
financing and financing activities and provides answers to such questions as where did cash come from, what
was cash used for, and what was the change in the cash balance during the reporting period.
3
FLORIDA DEVELOPMENT FINANCE CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2019
Financial Analysis
Net Position
Net position may serve over time as a useful indicator of FDFC’s financial position. FDFC’s assets exceeded
liabilities by $3,370,303, representing an increase in net position for the year of $2,252,541. The largest portion
of FDFC’s net position reflects cash received from bond issuance fees.
Table A-1:
Statements of Net Position
(In thousands of dollars)
Fiscal Year Fiscal Year Dollar
2019 2018 Change
Assets
Cash $ 3,331 $ 1,100 $ 2,231
Accounts receivable - 7 (7)
Prepaid expenses 31 15 16
Capital assets, net 31 33 (2)
Total assets 3,393 1,155 (2,238)
Liabilities
Accounts payable 12 27 (15)
Accrued expenses 11 10 1
Total liabilities 23 $ 37 (14)
Net Position
Investment in capital assets 31 33 (2)
Unrestricted 3,339 1,085 2,254
Total net position $ 3,370 $ 1,118 $ 2,252
Total cash increased in fiscal 2019 due mostly to large surface transportation bonds and multiple PACE bonds.
4
FLORIDA DEVELOPMENT FINANCE CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2019
Changes in Net Position
The changes in net position displayed below shows FDFC’s activities during the past two fiscal years. The
increase in net position for each year represents the extent to which revenues exceeded expenses during the
year.
Table A-2:
Statements of Revenues, Expenses, and Changes in Net Position
(In thousands of dollars)
Fiscal Year Fiscal Year Dollar
2019 2018 Change
Revenue:
Fees $ 3,329 $ 907 $ 2,422
Other revenue 484 66 418
Total revenue 3,813 973 2,840
Expenses:
General and administrative
Salaries and wages 653 462 191
Professional fees 116 142 (26)
Other 663 231 432
Program:
PACE program 96 68 28
FRED 33 43 (10)
Total expenses 1,561 946 615
Change in Net Position 2,252 27 2,225
Net Position, beginning of year 1,118 1,091 27
Net Position, end of year $ 3,370 $ 1,118 $ 2,252
The increase in revenue is due to the issuance of the two very large Virgin Train USA bonds. In addition, more
PACE residential bonds were issued during current year.
The increase in expenses is due to increase in reimbursable expenses related to bond issuance. In addition,
there were salary and wages increases due to promotion, bonuses, and raises.
5
FLORIDA DEVELOPMENT FINANCE CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2019
Economic Factors
FDFC’s primary business is the issuance of tax exempt revenue bonds, which are permissible under the U.S.
Internal Revenue Service’s private activity regulations and Chapter 288, Part X, Florida Statutes. Those
regulations, subject to a number of limitations and restrictions, allow small manufacturers and non-profit
corporations to finance capital assets with tax exempt bond proceeds.
FDFC’s revenues are exclusively generated by fees charged for issuance of bonds, and the volume of bond
issuance can be directly impacted by general economic and perception of policies for conduit issuance by
potential borrowers and their finance team.
Requests for Information
This financial report is designed to provide a general overview of FDFC’s finances for all those with an interest
in FDFC’s finances. Questions concerning any of the information provided in this report or requests for
additional information should be addressed to:
Bill Spivey
Executive Director
156 Tuskawilla Road, Suite 2340
Winter Springs, Florida 32708
6
BASIC FINANCIAL STATEMENTS
FLORIDA DEVELOPMENT FINANCE CORPORATION
STATEMENT OF NET POSITION
JUNE 30, 2019
ASSETS
Current Assets:
Cash and cash equivalents $ 3,331,063
Prepaid expenses 31,480
Capital assets, net
Leasehold improvements 6,361
Computer software 25,015
Total Assets 3,393,919
LIABILITIES
Current Liabilities:
Accounts payable 12,335
Accrued expenses 11,281
Total Liabilities 23,616
NET POSITION
Net investment in capital assets 31,376
Unrestricted 3,338,927
Total Net Position 3,370,303
Total Liabilities And Net Position $ 3,393,919
See notes to financial statements. 7
FLORIDA DEVELOPMENT FINANCE CORPORATION
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
YEAR ENDED JUNE 30, 2019
Revenues
Conduit debt issuance fees $ 3,117,760
Conduit debt reimbursement revenues 452,713
PACE program fees 211,414
Interest and other 31,838
Total Revenues 3,813,725
Expenses
Salaries and wages 652,855
Reimbursement expenses 452,713
Professional fees 115,932
PACE program direct expenses 129,264
Other 210,420
Total Expenses 1,561,184
Increase in Net Position 2,252,541
Net Position, Beginning of Year 1,117,762
Net Position, End of Year $ 3,370,303
See notes to financial statements. 8
FLORIDA DEVELOPMENT FINANCE CORPORATION
STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2019
Cash Flows From Operating Activities:
Receipts from fees and expense reimbursements $ 3,799,924
Payments to service providers (1,576,424)
Interest received 20,581
Net Cash Provided by Operating Activities 2,244,081
Cash Flows From Investing Activities:
Purchase of equipment (12,947)
Net Cash Used in Investing Activities (12,947)
Net Decrease in Cash and Cash Equivalents 2,231,134
Cash and Cash Equivalents, Beginning of Year 1,099,929
Cash and Cash Equivalents, End of Year $ 3,331,063
Reconciliation of Increase in Net Position to Net Cash
Used in Operating Activities:
Increase in net position $ 2,252,541
Adjustments to reconcile increase in net position
to net cash provided by operating activities:
Depreciation 14,490
Changes in:
Accounts receivable 6,780
Prepaid expenses (16,468)
Accounts payable (14,884)
Accrued expenses 1,622
Net Cash Used in Operating Activities $ 2,244,081
See notes to financial statements. 9
FLORIDA DEVELOPMENT FINANCE CORPORATION
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2019
Note 1 – Summary of Significant Accounting Policies
A. Reporting Entity
Florida Development Finance Corporation ("FDFC") is an independent entity constituted as a public instrumentality
of local government, created to facilitate economic development in Florida by working in partnership with the Florida
financial services industry and local development organizations to create access to competitive sources of finance
for creditworthy borrowers and other firms contributing to job creation and the economic base of Florida. FDFC's
bond programs provide access to capital for project development through tax exempt and taxable financing. This
includes financing to stimulate and assist in the expansion of all kinds of for-profit and not-for-profit business activity,
a portion of which consists of residential and commercial bonds through the Property Assessed Clean Energy
(“PACE”) Program.
FDFC was formed pursuant to Florida Statutes, Chapter 288, Part X and all acts supplemental thereto and
amendatory thereof.
FDFC is governed by a five member board of directors, appointed by the Governor, subject to confirmation of the
Senate. Each board member is appointed by the Governor and serves a term of four years. The current statutory
provisions reflect a related party relationship with the State of Florida, whereas the State of Florida does not impose
its will on FDFC. Accordingly, FDFC does not meet the criteria provided by the Governmental Accounting Standards
Board for being a component unit of the State of Florida.
The accompanying basic financial statements comply with the provisions of Governmental Accounting Standards
Board (“GASB”) Statement No. 14, as amended, The Financial Reporting Entity, in that the financial statements
include all organizations, activities, and functions that comprise FDFC. Component units are legally separate
entities for which FDFC (the primary entity) has financial accountability. Financial accountability is defined as the
ability of the primary entity to appoint a voting majority of an organization's governing body and either (1) impose its
will over the organization or (2) there is a potential that the organization will provide a specific financial benefit to, or
impose a specific financial burden on the primary entity. Financial accountability may also arise if an organization is
fiscally dependent on and has a fiscal benefit or burden relationship with the primary government. Using these
criteria FDFC has no component units.
B. Measurement Focus and Basis of Accounting
FDFC is accounted for as an enterprise fund. The basic financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and
expenses are reported when the liability is incurred, regardless of the timing of the related cash flows.
FDFC financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America, including application of all relevant GASB pronouncements.
C. Deposits and Investments
FDFC places its cash on deposit with financial institutions in the United States. The Federal Deposit Insurance
Corporation (FDIC) covers $250,000 for substantially all deposit accounts.
FDFC’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term, highly
liquid investments with original maturities of three months or less. Investments classified as cash equivalents include
amount placed with the Florida Surplus Asset Fund Trust (“FL SAFE”).
FDFC’s investment in the FL SAFE is a qualifying local government investment pool and was assigned a rating of
“AAAm” by the Standard and Poor’s Rating Service. As of June 30, 2019, FDFC had a balance of $3,160,526 in the
FL SAFE. FDFC’s position in the pool is valued based on amortized cost, which approximates fair value, and is
treated as a cash equivalent in financial statement presentation. The FL SAFE has no limitations or restrictions on
withdrawals.
10
FLORIDA DEVELOPMENT FINANCE CORPORATION
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2019
Note 1 - Summary of Significant Accounting Policies (continued)
C. Deposits and Investments (continued)
FDFC follows the investment policy of Florida Statute §218.415, which states that units of local government electing
not to adopt a written investment policy may invest or reinvest any surplus public funds in their control or possession
in (1) the Local Government Surplus Funds Trust Fund, or any intergovernmental investment pool authorized
pursuant to the Florida Interlocal Cooperation Act of 1969, (2) Securities and Exchange Commission registered
money market funds with the highest credit quality rating from a nationally recognized rating agency, (3) interest-
bearing time deposits or savings accounts in qualified public depositories, and (4) direct obligations of the U.S.
Treasury.
D. Capital Assets
Capital assets consist of computer software and leasehold improvements, stated at cost when purchased or
constructed. The threshold for capitalization of assets is $1,000. Expenses for maintenance and repairs are charged
to operations. Provisions for depreciation are made using the straight-line method, based upon either the useful life
of assets or the term of the associated lease.
E. Conduit Debt Issuance Fees
Issuance fees paid by borrowers for conduit debt obligations are generally recognized as revenue in the period the
bonds are issued; however, application fees are not refundable and are typically recognized when received.
F. Reimbursement Revenues
Revenues recognized as reimbursement for conduit debt projects and the PACE program are recorded as related
expenses are incurred.
G. Use of Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the basic financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from
those estimates.
H. Income Taxes
FDFC is a not-for-profit corporation and has been determined by the Internal Revenue Service to be a 501(c)(4)
organization exempt from taxes under Section 501(a) of the Internal Revenue Code. Accordingly, no provision has
been made for income taxes.
I. FDFC PACE Program Agreement with FRED
During fiscal 2017, FDFC entered into an agreement with the Florida Resiliency and Energy District (“FRED”), a
separate legal entity authorized to facilitate PACE financing pursuant to Section 163.01(14), Florida Statutes. Under
the agreement, FDFC serves as FRED’s agent for purposes of executing Financing Agreements with property
owners on behalf of FRED pursuant to Section 163.08(6), Florida Statutes, for purposes of administering the FDFC
PACE Program within the boundaries of FRED and for ensuring compliance with the Florida PACE Act.
11
FLORIDA DEVELOPMENT FINANCE CORPORATION
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2019
Note 2 - Related Party Transactions
FDFC enters into bond financing transactions on behalf of borrowers with various financial institutions who have
been approved by FDFC's Board of Directors. Certain Board members are affiliated with these financial institutions,
which issue letters of credit that secure payment of the bonds. It is management's opinion that these transactions
have been conducted at arm's length.
Note 3 – Commitments and contingencies
FDFC is obligated under an operating lease for the office building. At June 30, 2019, future minimum lease
payments under the operating lease are as follows for the years ending June 30:
2020 $ 46,207
2021 47,593
2022 49,020
2023 24,871
$ 167,691
FDFC’s total lease expenses were $56,275 for the year ended June 30, 2019, and are included in other
expenses.
Note 4 - Conduit Debt
In accordance with its mission and Chapter 288, Part X, Florida Statutes, FDFC has facilitated the issuance of debt
obligations whereby FDFC is merely a conduit issuer of bonds issued on behalf of borrowers. These bonds do not
constitute a general debt, liability or obligation of FDFC, the state, or any local government.
Additionally, FDFC has assigned all rights to receive payments from the borrowers to the bond purchaser in all bond
financing transactions. Assigned payments are not included in the accompanying basic financial statements.
Changes in PACE residential bonds conduit debt outstanding for the year ended June 30, 2019 are as follows:
Balance at Balance at
July 1, June 30,
2018 Additions Reductions 2019
2019 PACE Residential Bonds * $ 1,660,513 $ 19,353,886 $ 79,041 $ 20,935,357
Total PACE Residential Bonds $ 1,660,513 $ 19,353,886 $ 79,041 $ 20,935,357
* The July 1, 2018 balance consists of one bond issuance; the June 30, 2019 balance consists of six bond issuances.
12
FLORIDA DEVELOPMENT FINANCE CORPORATION
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2019
Note 4 - Conduit Debt (continued)
Changes in other bonds conduit debt outstanding for the year ended June 30, 2019 are as follows:
Balance at Balance at
July 1, June 30,
2018 Additions Reductions 2019
1999 Series B5 Composite Investor, LLC $ 140,000 $ - $ 60,000 $ 80,000
2000 Series A2 R.L. Smith Investments, LLC 290,000 - 140,000 150,000
2001 Series C1 Kelray Realty, Inc. (Glaspro) 90,000 - 60,000 30,000
2002 Series C4 Serigraphics Arts, Inc. 240,000 - 45,000 195,000
2007 Series A Learning Gate 6,320,000 - 6,320,000 -
2008 Series A Sculptor Charter School 4,470,000 - 85,000 4,385,000
2009 Series Center Court Properties, Inc. 1,490,000 - 90,000 1,400,000
2009 Series Airport Properties Partners, LLC 11,025,000 - 200,000 10,825,000
2010 Series Lake Eola Charter Schools Foundation, Inc. 1,438,373 - 85,001 1,353,372
2010 Series A&B Renaissance Charter Schools, Inc. 62,880,000 - 1,210,000 61,670,000
2011 Series A&B Renaissance Charter Schools, Inc. 83,670,000 - 1,375,000 82,295,000
2011 Series A&B Bay Area Charter Foundation 34,045,000 - 1,095,000 32,950,000
2012 Series Sculptor Charter School 695,000 - 10,000 685,000
2012 Series A&B Montverde Academy 4,410,000 - 315,000 4,095,000
2012 Series A&B Renaissance Charter Schools 55,365,000 - 930,000 54,435,000
2013 Series A&B Out of Door Academy, Inc. 16,932,203 - 16,932,203 -
2013 Series A&B Renaissance Charter School, Inc. 77,030,000 - 1,190,000 75,840,000
2013 Series A&B UF Health-Jacksonville 107,755,000 - 5,395,000 102,360,000
2014 Series A&B Miami Arts, Inc. 33,275,000 - 560,000 32,715,000
2014 Series A&B Renaissance Charter Schools, Inc. 50,705,000 - 825,000 49,880,000
2014 Series A&B Downtown Doral Charter School, Inc. 21,825,000 - - 21,825,000
2014 Series A&B FL Charter Educational Foundation, Inc. 14,005,000 - 185,000 13,820,000
2014 Series A American Public Media Group 9,565,000 - 335,000 9,230,000
2015 Series A&B Tuscan Isle Property, LLC 43,580,000 - 43,580,000 -
2015 Series A Divine Savior Lutheran Academy 28,769,617 - 850,397 27,919,220
2015 Series A&B Renaissance Charter Schools, Inc. 92,840,000 - 2,160,000 90,680,000
2015 Series A&B UF Health- Jacksonville 85,000,000 - - 85,000,000
2015 Series A&B Tuscan Isle Property, LLC 51,170,000 - - 51,170,000
2016 Cypress Point Living, LLC 27,050,000 - - 27,050,000
2016 Series A&B The Pepin Academies 12,165,000 - 2,655,000 9,510,000
2016 Series A&B Franklin Academy 50,030,000 - 880,000 49,150,000
2016 Series A The Pine School 6,835,980 - 205,925 6,630,055
2016 Series A&B Florida Charter Educational Foundation 40,760,000 - 1,370,000 39,390,000
2017 Series A&B Classical Preparatory, Inc. 10,205,000 - 145,000 10,060,000
2017 Series A&B Palm Bay Academy 8,000,000 - - 8,000,000
2017 Series A&B Southwest Charter Foundation 40,630,000 - 510,000 40,120,000
2017 Series A&B Downtown Doral Charter School, Inc. 6,300,000 - - 6,300,000
2017 Series C&D Downtown Doral Charter School, Inc. 39,245,000 - - 39,245,000
2017 Series Waste Pro USA, Inc. 32,500,000 - - 32,500,000
2017 Series A All Aboard Florida - Operations LLC 600,000,000 - 600,000,000 -
2018 Series A&B Classical Preparatory, Inc. 4,550,000 - 65,000 4,485,000
2018 Series A&B Learning Gate Community School, Inc. 9,130,000 - 90,000 9,040,000
2018 Series A Midtown Campus Properties - 77,820,000 - 77,820,000
2018 Series A Central Florida Fair - 5,000,000 - 5,000,000
2019 Series A&B Image School Broward - 19,175,000 - 19,175,000
2019 Series A&B Athenian Academy - 7,200,000 - 7,200,000
2019 Series A Virgin Trains USA - 1,750,000,000 - 1,750,000,000
2019 Virgin Trains USA Escrow - 950,000,000 - 950,000,000
2019 Series A&B UF Jacksonville Physicians, Inc. - 30,000,000 21,994,132 8,005,868
2019 Series Waste Pro USA, Inc. - 46,515,000 - 46,515,000
Total Other Bonds $ 1,786,421,173 $ 2,885,710,000 $ 711,947,658 $ 3,960,183,515
13
SUPPLEMENTARY REPORT OF
INDEPENDENT AUDITOR
Report of Independent Auditor on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance
with Government Auditing Standards
To the Board of Directors,
Florida Development Finance Corporation:
We have audited, in accordance with the auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States, the financial statements of Florida Development Finance Corporation (”FDFC”) as of
and for the year ended June 30, 2019 and the related notes to the financial statements, and have issued our report
thereon dated September 18, 2019 for the purpose of compliance with Section 218.39(2), Florida Statutes, and
Chapter 10.550, Rules of the Auditor General – Local Government Entity Audits.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered FDFC's internal control over
financial reporting (“internal control”) to determine the audit procedures that are appropriate in the circumstances for
the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion
on the effectiveness of FDFC’s internal control. Accordingly, we do not express an opinion on the effectiveness of
FDFC’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will
not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses may exist that have exit that have not been
identified.
14
Compliance and Other Matters
As part of obtaining reasonable assurance about whether FDFC's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and
grant agreements, noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed
no instances of noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or
on compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Orlando, Florida
September 18, 2019
15
Florida Development Finance Corporation Has Recently
Taken Steps to Improve Accountability
November 15, 2017
Summary
As directed by the Legislature, OPPAGA reviewed the revenue bond issuance function of the
Florida Development Finance Corporation (FDFC) and answered five questions.
1. How does the FDFC operate as a conduit bond issuer?
2. What mechanisms are in place to protect taxpayers and investors?
3. How does the FDFC use industry best practices when issuing debt?
4. How is the FDFC unique from other conduit bond issuers
5. What do bond project participants think about their experiences with the FDFC?
Background
The Florida Development Finance Corporation is a statewide development financing authority
created by the Legislature in 1993. 1 The corporation’s purpose is to assist for-profit and not-for-
profit businesses with financing capital projects that promote economic development. 2 The
corporation has the power to function within the corporate limits of any public agency including
local governments with which it enters into an inter-local agreement. FDFC has established 41
agreements with 35 counties, 5 cities, and 1 town.
FDFC is governed by a five-member board appointed by the Governor and confirmed by the
Senate for four-year terms. State law requires that at least three members are bankers and one
member is an economic development specialist. 3 An executive director oversees the daily
operations of the FDFC.
FDFC offers traditional revenue bonds and bonds for an energy conservation program. FDFC is
a conduit bond issuer, meaning it issues bonds on behalf of borrowers. In this capacity, the FDFC
has been granted authority by the Legislature to issue municipal bonds, either tax-exempt or
taxable revenue bonds. 4, 5 These bonds can provide financing for projects that further public
purposes and are issued on behalf of a range of organizations, including charter schools, small
manufacturers, and health care facilities. Tax-exempt bonds have advantages because they tend
to have a lower interest rate than bank loans or taxable fixed-income securities such as corporate
bonds. Moreover, investors benefit by not paying income taxes on interest payments. FDFC may
issue tax-exempt bonds providing that the corporation meets certain requirements, including public
notice and hearings required under federal Tax Equity and Fiscal Responsibility Act (TEFRA).
1
Chapter 288 Part X, F.S. The corporation was created as a “public body corporate and politic” meaning that it is a legal entity or corporation
with a public function.
2
Section 288.9605 (2) (f), F.S.
3
Section 288.9604 (2), F.S.
4
Municipal bonds are debt securities issued by states, cities, counties, and other governmental entities to finance capital projects such as building
schools or sewer systems.
5
Tax-exempt bonds issued under this act means the interest from the bond is exempt from federal income taxes as well as most state taxes.
Section 288.9606 (2), F.S.
Page 2
Bonds issued by the FDFC are typically sold through a private placement process or through a
negotiated sale following a public offering. 6
The corporation also has responsibilities under the Property Assessed Clean Energy (PACE)
program created by the 2010 Legislature. The program allows property owners to place a
voluntary non-ad valorem special assessment on their property. A property owner can use the
equity accrued over time as an extension of credit for financing home improvements pertaining to
energy conservation. FDFC’s role in the program includes overseeing PACE providers as well as
structuring and creating revenue bonds. 7 Since FDFC has not issued any bonds for the PACE
program, our review focused only on the corporation’s issuance of traditional revenue bonds.
The corporation issued bonds for 80 projects totaling $1.5 billion between Fiscal Years 1996-97
and 2016-17. Of the $1.5 billion in bonds issued, $932.8 million (64.1%) occurred in the last five
fiscal years. A project can have multiple bond transactions involving different borrowers,
locations, dollar amounts, and tax conditions (i.e., tax-exempt or taxable). The 80 projects
involved 117 bond transactions with 98 different borrowers.
A majority of projects (63.8%) involved only tax-exempt bonds. Almost one-third of projects had
a combination of tax-exempt and taxable bonds. In those projects, the majority of the bond funds
were tax exempt. Four projects had only taxable bonds. Moreover, most FDFC projects involved
issuances of non-rated bonds. Of the 80 FDFC projects, 69 (86.3%) had bonds issued that were
not rated by rating firms evaluating credit worthiness.
The type of projects funded by FDFC bonds has changed over time. Manufacturing projects
comprised 91% of the FDFC bond funds issued in the first 10 years (1997-2006); these
manufacturing projects involved multiple borrowers. Starting in 2006, most FDFC bond funds
went to charter school projects. Charter schools have received $759.3 million and the majority
(52.2%) of bond funds issued since Fiscal Year 1996-97. (See Exhibit 1.)
Exhibit 1
Charter Schools Received the Majority of FDFC Bond Funds From Fiscal Years 1996-97 to 2016-17
Use Number of Projects Total Issuance
Charter School 23 $759,318,500
Health Care 3 208,645,000
Manufacturing 35 186,080,499
Senior Living Facility 5 147,600,000
Private School 7 78,577,130
Radio Station 3 33,450,000
Solid Waste 1 32,500,000
Day Care 1 1,955,000
College 1 1,800,000
Multiple Uses1 1 4,970,000
Total 80 $1,454,896,129
1
This project involved both a college and a manufacturing company.
Source: OPPAGA Analysis of Florida Development Finance Corporation data.
6
Private placements are bond issuances to banks or financial institutions. These financial institutions purchase the bonds for their own accounts
and intend to hold the bonds as investors.
7
As of September 2017, FDFC has contracted with one residential PACE program administrator and 16 projects are moving forward in the
process. FDFC expects that the first bond issuance for PACE will occur in November 2017. FDFC plans to increase the number of residential
PACE program administrators and move forward with its commercial PACE program in 2018.
Page 3
Of the 80 projects, 52 were located in 19 counties throughout the state. Most FDFC projects were
located in single counties. Of projects located in single counties, Brevard and Hillsborough had
the most with six each. Duval received the most bond funds with four projects totaling $208.6
million. Over one-third (35%) of all FDFC projects were located in multiple counties. For
instance, one project can have charter schools located in multiple counties. (See Appendix A for
more information on FDFC projects.)
FDFC revenues have fluctuated, while expenses have increased in the last three fiscal years.
FDFC receives no state funds and is funded from bond issuance fees. The corporation requires
applicants to submit a non-refundable processing fee of $1,500. FDFC does not require an annual
fee, but a one-time issuance fee after the bonds are closed. 8 The corporation’s revenues have
varied over the last three fiscal years, ranging from $553,231 to $1.0 million. (See Exhibit 2.)
FDFC’s expenses consist of administrative and professional fees for staff and contractors,
including bond counsel, financial advisor, and lobbyist. The corporation currently has four
full-time staff. FDFC has also expended funds in establishing the PACE program. Expenses have
increased over the last three fiscal years. Expenses in Fiscal Year 2016-17 exceeded revenues by
$378,481 due to higher than expected expenses for the PACE program, an increase in personnel
costs, and project-related reimbursable expenses.
Exhibit 2
FDFC’s Expenses Have Increased Over the Last Three Fiscal Years
Source: OPPAGA analysis of Florida Development Finance Corporation audited financial statements.
How does the FDFC operate as a conduit bond issuer?
The FDFC process involves multiple steps that include application submittal, two FDFC board
meetings for project consideration and approval, and in cases of tax-exempt bonds, public hearings
and approval by the State Board of Administration’s Division of Bond Finance. Once these steps
are completed, the closing process involves completion of documents and sale of bonds. (See
Exhibit 3.)
8
FDFC has established a tiered issuance fee schedule based on the face value of the bond. Bonds valued from $0-$2.5 million pay 75 basis
points (0.75%); bonds valued from $2.5-$32.5 million pay 25 basis points (0.25%); and bonds valued over $32.5 million pay 10 basis points
(0.10%).
Page 4
Exhibit 3
FDFC’s Bond Issuance Process Includes Reviewing Application Completeness and Board Approval
• Borrower submits application
• FDFC reviews application for completeness
Application • FDFC conducts analysis of project eligibility
Submittal • Borrower applies for Private Activity Bond Allocation
• Borrower presents project to the FDFC board
Initial Board • FDFC Board may reject project
Meeting
• FDFC notices and conduct public hearing
TEFRA Process • TEFRA information packet sent to Division of Bond Finance
(If bond is tax-exempt) • Division provides approval
• Borrower prepares bond documents
Final FDFC Board • FDFC provides overview of bond financing and documents
Meeting • Board votes to approve or deny bond resolution
• Borrower requests Private Activity Bond Amount from Division of Bond Finance
Private Activity Bond • Division of Bond Finance approves Private Activity Bond Amount
Approval
• Preliminary offering documents are released to potential buyers
• Final offering documents are updated for pricing and released
Closing • Documents are fully executed
• Confirmation of transaction and payment to all parties
Source: OPPAGA analysis of US Census Bureau data, and data provided by St. Johns River State College and First Coast Technical College.
Students identified with any other county of residence were excluded.
FDFC staff is responsible for analyzing information provided by the borrower and managing
TEFRA and FDFC board review. Before an application is submitted, FDFC staff conducts a
pre-submittal discussion with the borrower. FDFC staff discusses the uses of the bonds, whether
the project qualifies for tax-exempt bonds, and the length of the bond issuance process. The
borrower then submits an application to FDFC, and corporation staff reviews it for completeness.
FDFC also ensures that the borrower has provided documents to demonstrate that the proposed
project is financially feasible and has the ability to repay investors. FDFC staff also makes initial
assessments regarding whether the bonds will constitute qualified private activity bonds for tax-
exempt purposes and whether a private activity bond allocation will be required. FDFC staff
makes these determinations with the assistance of their contracted financial advisor and bond
Page 5
counsel. If required, the borrower then applies to the Division of Bond Finance for a Private
Activity Bond allocation to determine if funding is available for the project. 9
The FDFC board meets at this stage in the process to receive an overview of the project. FDFC
staff and the borrower present a preliminary review of the proposed project and financing details
to provide an opportunity for questions and determine support to continue with the process. The
FDFC board considers the borrower’s presentation and documentation as well as staff’s project
summary. The board has the ability to reject a project if it does not meet the corporation’s criteria,
including whether the
project is located in Florida;
project benefits a Florida corporation, business, or organization;
project or Florida entity qualify for tax-exempt bonds per the Internal Revenue Service
code;
borrower has the ability to repay the debt; and
financial institution or broker-dealer has committed to financing the project. 10
If a project involves the issuance of tax-exempt bonds, the FDFC is also responsible for conducting
the federal Tax Equity and Fiscal Responsibility Act review process. FDFC staff notices the public
hearing in the county where the project is located and conducts the hearing, which allows the
public to comment on the proposed project. Board members do not attend the hearings and no
board action is taken after the hearing. FDFC sends the TEFRA packet, including the public
hearing advertisement, meeting minutes, and attendance sheet, to the Division of Bond Finance
for approval. The division requires the FDFC to provide additional documentation, including the
project summary, authorizing bond resolution, borrower financial statements for the prior three
years, cost of issuance breakdown, and feasibility study.
The FDFC board meets a second time to provide final project approval for all bond projects. The
borrower’s bond counsel and financial advisor prepare the final bond resolution documents, along
with any financial and legal reviews by FDFC’s financial advisor and bond counsel. FDFC staff,
financial advisor, and counsel provide an overview of the project and its financial structure as well
as bond documents to the FDFC board. The FDFC board will vote to approve or deny the bond
resolution.
The Division of Bond Finance approves the allocation of Private Activity Bonds prior to project
closing. At this stage, the borrower’s financial team requests the actual funding amount of Private
Activity Bonds and submits documentation to the Division of Bond Finance. The division
approves the Private Activity Bond allocation if there are sufficient funds. Upon receiving the
TEFRA approval and Private Activity Bond Allocation, the borrower and underwriter can market
the bonds.
The closing process involves several steps to ensure all documentation is complete, which
facilitates the payment of bond proceeds. Before the closing, FDFC’s counsel and financial
advisor review the closing documents to ensure that all terms and conditions are being met. FDFC
requires that the borrower certify the accuracy of the offering document, which includes details of
the project and financing. The FDFC also requires the underwriter to provide certification of its
9
Every year, the federal government allocates each state the amount of tax-exempt Private Activity Bonds that can be issued. Private Activity
Bonds are municipal financing arrangements that are exempt from federal taxes. Borrowers seeking tax-exempt bond financing need to request
use of this state-allocated bonding authority from the Division of Bond Finance. A borrower does not apply for a specific amount, just a share
of the allocation. The division reports that the Private Activity Bond allocation for Florida in calendar year 2017 was $2.1 billion.
10
Since its inception, the FDFC has rejected only one project at this stage. The board rejected the project because it felt that the project was
highly speculative and not consistent with the financing of capital expenses for construction.
Page 6
compliance with sales restrictions and applicable securities regulations. When investors and the
borrower agree to the interest rate, the bond purchase agreement is executed and preliminary
offering documents are updated and sent to all parties. The bond will close the following day after
the closing documents are executed. The borrower confirms payment by the investors and all other
parties receive payments.
What mechanisms are in place to protect taxpayers and investors?
Previously, FDFC policies were designed to safeguard taxpayers from being obligated to pay for
FDFC-issued bonds that go into default. Recently adopted FDFC policies are intended to add
protections for unsophisticated taxpayers from the risks involved in purchasing these types of
bonds. Federal entities may also provide safeguards for investors.
FDFC policies protect the state from default and investors from the risks of non-rated bonds.
All bonds issued by FDFC are conduit bonds, payable solely from the revenues and assets of the
conduit borrowers or from assets or security otherwise provided by such borrowers. According to
corporation officials, neither the revenues nor the assets of FDFC, the state, or any local
governmental entity are pledged to repay FDFC bonds that are in default. FDFC ensures that
provisions protecting it and the state from default are written into bond documents. However,
Division of Bond Finance staff noted that defaults on any bond issued by a state-authorized entity
have the potential to affect the state’s and corporation’s reputation.
The rate of defaults for FDFC projects has been low. FDFC reports that as of October 2017, 3 out
of 117 (2.6%) bond transactions have defaulted. A default typically is managed between the
investor and the borrower. In cases of default, the trustee will notify all parties to the bond after
exhausting all means to remedy the situation. The FDFC is notified but is not party to any default
process.
Most bonds issued for FDFC projects are non-rated and privately placed or placed through a
negotiated sale following a public offering. These bonds have a higher degree of risk of default
than rated bonds. FDFC’s current conduit issuance policy limits the sale of non-rated bonds to
Qualified Institutional Buyers (QIB) or Accredited Investors who have the appropriate knowledge
and sophistication to understand the risks involved in investing in non-rated and non-investment
grade rated bonds. 11 FDFC is required to confirm the identity of the initial QIBs or Accredited
Investors or obtain investor letters with support as needed from the underwriter. Data reported by
FDFC shows that all bond transactions were only sold to QIBs since Fiscal Year 2012-13.
To further limit the risk to investors, FDFC revised its policy in May 2017, increasing the limit of
minimum denominations of non-rated or non-investment grade rated bonds sold. (See Exhibit 4.)
FDFC officials reported that the increase to $250,000 for minimum denomination is above industry
standards for comparable conduit issuers at $100,000.
The FDFC also changed its policy on traveling investor letters. An investor signs the investor
letter acknowledging the risks associated with the bond being purchased. The letter “travels” from
one bond purchaser to another. The FDFC executive director may require such a letter based on
the nature of the project financing and borrower’s credit history. A traveling investor letter is tied
to a particular minimum denomination. Under the former policy, this amount was $25,000 to be
sold to QIBs and Accredited Investors. However, the FDFC increased the minimum denomination
to $100,000 with a traveling investor letter to be sold only to QIBs.
11
A Qualified Institutional Buyer is a corporation that owns and invests a minimum of $100 million in securities on a discretionary basis. An
Accredited Investor is an individual with earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two
years or has a net worth over $1 million. Both definitions are covered under the Securities Act of 1933.
Page 7
Exhibit 4
Changes in FDFC Bond Policy Increases Minimum Denominations for Non-Rated Bonds, Limiting Risk
to Investors
Sales Restriction Former Policy (July 16, 2014) New Policy (May 3, 2017)
Limited offering or public offering to be None $100,000 with a traveling investor letter;
sold only to Qualified Institutional Buyers or $250,000
Limited offering or public offering to be $25,000 with a traveling investor letter; or < $10,000,000 (Par Amount): $250,000
sold to Qualified Institutional Buyers and $100,000 ≥$10,000,000 (Par Amount): $500,000
Accredited Investors
Source: OPPAGA analysis of FDFC documents.
In addition, the new policy requires verification by the borrower and the underwriter that all bond
documents are factual and no material facts have been omitted. FDFC staff reviews and analyzes
the application for evidence that the project is financially feasible and demonstrates the ability to
repay the investors. The bond offering documents must include the disclosure of this policy. The
policy also requires FDFC to confirm the identity of the initial QIBs or Accredited Investors.
These sales restrictions apply to the initial and subsequent sale of bonds.
Division of Bond Finance’s involvement in the TEFRA process helps reduce investor risk; federal
entities may also provide safeguards. The Division of Bond Finance’s interface with FDFC is
limited to the TEFRA process. The FDFC provides the division a packet of information that
includes the public hearing advertisement, meeting minutes, and attendance sheet for TEFRA
approval. The division also requests that the FDFC provide additional non-TEFRA documentation
such as the project summary, the authorizing bond resolution, borrower financial statements for
the prior three years, cost of issuance breakdown, and the feasibility study. The division reports
that its review is intended to ensure that FDFC has conducted an adequate credit analysis and
financial diligence before it approves the project’s financing. In addition, the division’s review
may assess whether FDFC is using industry best practices in connection with managing the
transaction and adhering to its policies regarding measuring the project’s performance and the
minimum denominations of non-rated and non-investment grade bonds.
At the federal level, a borrower could be subject to an enforcement action by the U.S. Treasury
Department related to compliance with the provisions of the Internal Revenue Code for tax-exempt
bonds, or the Securities and Exchange Commission related to compliance with applicable federal
securities regulations. For example, federal security laws prohibit fraud in the offering or sale of
securities and proscribe rules for fair dealing and disclosure by municipal security professionals.
How does the FDFC use industry best practices when issuing debt?
Florida law authorizing the FDFC and its operations does not require the corporation to follow any
specified best practices. However, several entities have developed best practices for bond
issuance, and FDFC officials reported that they are using some of these practices. Our evaluation
of these criteria suggests that FDFC could take additional steps to report the economic effects of
the projects funded by the corporation and improve its marketing efforts.
Several entities have developed best practices for bond issuance; FDFC is generally meeting
best practice areas. Our research identified two organizations that have issued best practices for
bond issuance: the Council of Development Finance Agencies and the Government Finance
Officers Association. The Council of Development Finance Agencies issued guiding principles
for developing or implementing an Industrial Development Bond program. The three main best
practice areas are program management, marketing, and oversight. Recommendations within
Page 8
these areas include proper oversight, public access to program material, marketing to the
community and target audiences, and building relationships with realtors, banks, and other
financial institutions. Additional recommendations included producing annual reports and
performing regular independent audits.
The Government Finance Officers Association’s best practice areas include debt issuance
transition costs, pricing bonds in a negotiated sale, selecting and managing municipal advisors,
selecting and managing the method of sale of bonds, and selecting bond counsel. Within these
areas are best practices that include obtaining needed services from auditors and others at a fair
and reasonable cost, understanding marketing conditions, and hiring municipal advisors unless
there is sufficient in-house expertise. The Division of Bond Finance has recommended that FDFC
consider adopting several of the association’s best practices.
FDFC officials reported that the corporation adheres to the practices outlined by the council, and
their documentation generally supports this assertion. For example, FDFC provides annual reports
such as an annual financial audit and information on bond transactions. While FDFC contends
that the association’s guidance focuses primarily on state and local government debt issuance
rather than conduit bond issuance, our research found that it has adopted several policies that
generally address the best practice areas. These policies include using a competitive process to
select bond professionals and a municipal advisor on bond issuances. (Additional information on
the best practices and FDFC efforts in these areas are contained in Appendix B.)
However, FDFC could further their adherence to industry best practices for marketing and
oversight. As noted above, the council recommends marketing of programs and services to state
and local community business groups. We found that the corporation allows the public access to
program materials through its website. However, it does not conduct an active outreach program
to market its services statewide. Instead, it relies on professional relations with public finance
professionals.
In addition, the association’s best practices for oversight include a report on performance
compared to expectations. As specified in state law, projects financed by FDFC are expected to
benefit Florida’s economy. One economic benefit to the state is job creation. As part of a project’s
application, the FDFC collects data on projected jobs. FDFC reports that 38 projects funded from
2009 to 2017, for which data were available, were projected to create 4,681 jobs; however, there
is no available data to confirm these projections. As part of its revised Conduit Issue Policy, FDFC
plans to report on jobs created (temporary and permanent) for future projects for a minimum of
seven years.
How is the FDFC unique from other conduit bond issuers?
FDFC’s scope is unlike most other conduit bond issuers. FDFC is authorized to issue tax-exempt
or taxable bonds in multiple counties of the state and for multiple purposes when FDFC has an
interlocal agreement with the local jurisdiction. We found only one other similar Florida entity,
the Capital Trust Agency, which can issue revenue bonds for multiple purposes statewide. One
difference between FDFC and the agency is the fee structure. The agency charges a one-time and
an annual fee rather than the one-time fee assessed by the FDFC.
Other entities can only issue bonds within a limited geographic area. For example, cities and
counties can only issue bonds in their jurisdictions, except where an interlocal agreement with
another local government exists. There are 122 Industrial Development Authorities that are
created by counties and can only issue bonds for projects in that county.
Page 9
Some conduit issuers can issue bonds statewide, but only for specific purposes. For example, the
Florida Housing Finance Corporation issues conduit bonds for affordable housing projects.
Similarly, the Higher Educational Facilities Financing Authority of Florida is a statewide tax-
exempt conduit bond issuer for non-profit institutions of higher education that are located in
Florida and that are accredited by the Southern Association of Schools and Colleges. The Florida
League of Cities’ Florida Municipal Loan Council can issue bonds across the state, but only for
local governments, not private companies.
What do bond project participants think about their experiences with the FDFC?
Participants involved in FDFC projects were generally satisfied with the FDFC’s process.
There are several entities participating in the bond issuance process. The main participants
include the borrower, underwriter, and trustee.
Borrower hires the finance team, provides information for application and support
materials, approves the prices of the bonds, and signs the bond purchase agreement and
other bond documents. The borrower’s finance team may include bond counsel, financial
advisor, and disclosure counsel.
Underwriter advises the borrower and finance team on the bond structure. The
underwriter buys the bonds from the borrower and sell the bonds to investors.
Trustee maintains lists of the bondholders in addition to receiving and distributing
interest payments. The trustee also monitors the borrower's compliance with the bond
agreements and communicates with the bondholders when the borrower is not in
compliance.
We interviewed four borrowers, three underwriters, and two trustees for four projects with bonds
issued in the last three fiscal years. These projects included a charter school, senior living facility,
hospital, and solid waste company. These participants indicated that they were generally satisfied
with FDFC’s process and FDFC staff’s responsiveness. Some participants stated that the FDFC
process was faster and less costly than other bond conduit issuers. Most respondents stated that
they would be interested in using FDFC’s services again.
However, some participants expressed concerns. For example, some respondents expressed
concerns about the FDFC requirement for the use of interlocal agreements for bond projects. They
stated that the FDFC did not have agreements with all local governments within their project’s
scope. As a result, they were not able to get funds for the project sites because of delays in
establishing interlocal agreements. In addition, some participants stated that the use of a traveling
investor letter would limit the number of potential investors. Participants indicated that the
traveling investor letter delays a bond transaction because the buyer’s legal counsel generally
reviews the letter before it is signed.
Options for Legislative Consideration
FDFC’s recent policy changes help protect the state from default and investors from the risks of
non-rated bonds. In addition, FDFC has adopted some industry best practices, including
competitive bidding for bond professionals and contracting for financial and municipal advisors.
To further improve FDFC’s adherence to best practices for oversight and marketing, the
Legislature could consider directing the FDFC to do the following.
Annually report on the economic effects of funded projects. The information could
include actual versus projected jobs created, capital investments made, and average
Page 10
wages. This information could help the Legislature assess the economic benefits of
FDFC projects.
Conduct more active statewide outreach to economic development organizations,
industry associations, and local governments about their conduit bond issuance services.
This outreach may include presentations to business groups or print and electronic media.
Increasing outreach could help FDFC establish more interlocal agreements with local
governments, which could address concerns raised by past participants. In addition,
enhanced outreach could assist in expanding the types of economic development projects
for which FDFC issues bonds.
Page 11
Appendix A
Florida Development Finance Corporation Projects
Funded From Fiscal Years 1996-97 to 2016-17
Since Fiscal Year 1996-97, the corporation funded 80 projects throughout the state. Of the 80
projects, 52 projects were located in 19 counties. Most FDFC projects were located in single
counties with the largest amount issued in Duval County. However, 49% of the bond funds issued
went to projects located in multiple counties.
Exhibit A-1
Almost Half of FDFC Bond Funds Issued Involved Projects Located in Multiple
County Number of Projects Total Issuance
Multiple 28 $714,820,000
Duval 3 $208,645,000
Osceola 2 $94,750,000
Miami-Dade 4 $92,835,000
Hillsborough 6 $76,715,000
Sarasota 5 $41,706,499
Brevard 6 $35,570,000
Lee 2 $31,550,000
Pasco 2 $30,275,000
Seminole 4 $30,175,000
Martin 3 $23,934,000
Okeechobee 1 $18,750,000
St. Lucie 2 $15,200,000
Orange 3 $14,843,500
Lake 3 $12,300,000
Marion 2 $5,100,000
Manatee 1 $3,250,000
Volusia 1 $2,700,000
Pinellas 1 $1,200,000
Broward 1 $577,130
Total 80 $1,454,896,129
Source: OPPAGA analysis of FDFC data.
Page 12
Appendix B
Best Practices for Conduit Bond Issuers
Exhibit B-1
Recent Policy Changes by the FDFC Board of Directors Include Elements of Many Best Practices
BEST PRACTICES EXAMPLES OF FDFC’S EFFORTS IN THESE AREAS
Council of Development Finance Agencies
Program Management FDFC manages its conduit bond programs through staff and a
Having trained and competent staff and resources involved in contracted industry professional (e.g., bond counsel). While not
the issuance process having a formal mission statement, the primary purpose of the
Having public access to applications and informational program is contained in Florida Statutes. FDFC allows the public
materials on the program access to program materials through its website.
Developing a mission statement
Marketing FDFC does not market its bond services to business groups,
Marketing the bond issuer’s ability to meet financial needs manufacturers, or other industries through traditional marketing
through bonding to the state and local community business efforts (e.g., presentations to business groups or print/electronic
groups media). Rather, FDFC’s executive director has built relationships with
Building relationships with local financial institutions and bond industry professionals in Florida to make them aware of FDFC’s
economic development organizations services. These professionals have referred their clients to FDFC.
Referrals from bond industry professionals are how FDFC gets all its
bond applications. Most applicants have used FDFC in the past.
Oversight FDFC produces annual reports, which include the annual audit, a list
Having clearly defined goals and objectives with measurable of bonds issued, amounts paid on the bonds during the year, and the
results balance of the bonds. A new FDFC policy should improve oversight
Documenting a detailed oversight process that ensures the by requiring the measurement of performance against projections as
bond financing process complies with laws and regulations well as the performance of certain quantitative metrics within the
Producing an annual report including performance compared to resolution approving the project for a minimum of seven years. FDFC
expectations along with a regular independent audit as requires that the borrower provide annual reports on economic and
necessary financial performance.
Government Finance Officers Association
Debt Issuance Transaction Costs Board policy requires FDFC to use a competitive process to select all
Obtaining needed services from financial advisors, bond service providers (such as bond counsel, issuer’s counsel, and
counsels, auditors, and others at a fair and reasonable cost municipal advisors) involved in the review and approval of
Reviewing all invoices to ensure that expenses are not billed to transactions and the offering and sale of bonds.
multiple parties
Pricing Bonds in a Negotiated Sale In the past, FDFC depended on internal staff for the evaluation of
Understanding market conditions and indicators and assessing market conditions and features of issued bonds. When dealing with
how these factors will likely affect the timing and outcome of non-typical companies, such as new companies or those who are
the pricing not financially strong, FDFC would use financial advisors. Current
Evaluating whether features such as call features will result in policy (as of May 3, 2017) is to retain a municipal advisor on all
greater overall borrowing costs transactions.
Developing a database with pricing performance information on
each issue sold
Page 13
BEST PRACTICES EXAMPLES OF FDFC’S EFFORTS IN THESE AREAS
Selecting and Managing Municipal Advisors FDFC has used municipal advisors on bond issuances involving
Hiring a municipal advisor, unless there is sufficient in-house new companies or those that were not financially strong, with other
expertise and access to current bond market information bond issuances handled internally by staff. Municipal advisors are
Selecting municipal advisors using a competitive merit-based now required for all transactions with selection of the advisor made
process and reviewing those relationships periodically using a competitive process.
Municipal advisor fees should be on an hourly or retainer basis,
reflecting the nature of the services to the issuer
Selecting and Managing the Method of Sale of Bonds Bonds issued by FDFC typically are sold through a private
Selecting a method of sale such as a competitive or negotiated placement process or through a negotiated sale.
sale that is more likely to result in the lowest cost of borrowing
Selecting Bond Counsel Current FDFC policy is that bond counsel is selected using a
Selecting bond counsel using a competitive merit-based process competitive process such as a Request for Proposals or Request
Ongoing contracts should be reviewed regularly and re-subjected for Qualifications.
to competitive selection periodically
Source: OPPAGA analysis of documents from the Council of Development Finance Agencies, the Government Finance Officers Association,
and FDFC.
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The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1112
INTRODUCER: Senator Taddeo
SUBJECT: Bottled Water Excise Tax
DATE: January 17, 2020 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Reeve McKay CM Pre-meeting
2. FT
3. AP
I. Summary:
SB 1112 creates part III of chapter 211, F.S., imposing an excise tax of 12.5 cents per gallon on
bottled water operators engaged in the business of bottling or packing for sale water extracted
from waters of the state. The bill also provides for filing requirements, penalties on unpaid or
underpaid taxes, and administrative procedures.
The bill takes effect July 1, 2020.
II. Present Situation:
Water Resources in Florida
Chapter 373 of the Florida Statutes, known as the Florida Water Resources Act of 1972, governs
the management of water and related land resources. In order to promote the proper usage of
surface and groundwater as a statewide public resource, water is managed on the state and
regional basis. The Department of Environmental Protection (DEP) is responsible for the
administration of water resources at the state level and exercises general supervisory authority
over the state’s five water management districts, which are responsible for the administration of
water resources at the regional level.1 Though the DEP may exercise any power authorized to be
exercised by a water management district, such power should be delegated to the governing
board of a water management district to the greatest extent practicable.2
1
Florida Department of Environmental Protection, Office of Water Policy – Water Management Districts, available at
https://floridadep.gov/water-policy/water-policy/content/water-management-districts (last visited Jan. 17, 2020). The state’s
five water management districts are the Northwest Florida Water Management District, the Suwannee River Water
Management District, the St. Johns River Water Management District, the Southwest Florida Water Management District,
and the South Florida Water Management District.
2
Section 373.016(5), F.S.
BILL: SB 1112 Page 2
Water Use Permits
Water use permits, or consumptive use permits, establish the duration of and type of water use
permitted as well as the maximum quantity of water that may be withdrawn. Water use permits
allow the holder to withdraw a specified amount of water from the ground or a canal, lake, or
river for reasonable-beneficial uses.3 The DEP and the water management districts are authorized
to issue water use permits and impose reasonable conditions as necessary to ensure such use is
not harmful to the water resources of the area.4 This authority is primarily delegated to the water
management districts, which implement extensive water use permit programs within their
respective jurisdictions.5 The districts have different schedules for application processing fees,
which can vary based on total requested withdrawal amounts or type of application.6
Bottled Water
Bottled water is water intended for human consumption that is sealed in bottles or other
containers with no added ingredients except that it may optionally contain safe and suitable
antimicrobial agents.7 The processing and bottling of drinking water is regulated by the Florida
Department of Agriculture and Consumer Services, Division of Food Safety, and is subject to the
Food and Drug Administration’s requirements.8 Additionally, s. 500.12(c), F.S., provides
guidelines for applications for a food permit for operating a bottled water plant. There are
currently no statutory authorizations for the taxation of the processing and bottling of water
extracted within the state.
III. Effect of Proposed Changes:
Section 1 renames chapter 211 of the Florida Statutes, “Tax on Production of Oil and Gas and
Severance of Solid Minerals,” as “Tax on Production of Oil and Gas, Severance of Solid
Minerals, and Extraction of Water for Bottling.”
Section 2 directs the Division of Law Revision to create part III of ch. 211, F.S., consisting of ss.
211.40 through 211.45, F.S., entitled “Tax on Extraction of Water for Bottling.”
Section 3 creates s. 211.40, F.S., providing definitions. “Bottled water operator” means a person
engaged in the business of bottling or packaging for sale water extracted from waters of the state.
The term does not include a person who bottles or packages water from a public water system, as
defined in s. 403.852(2), F.S.9 “Water of the state” is synonymous with “waters,” defined in s.
3
Section 373.019(16), F.S., defines “reasonable-beneficial use” as the use of water in such quantity as is necessary for
economic and efficient utilization for a purpose and in a manner which is both reasonable and consistent with the public
interest.
4
Section 373.219, F.S. No permit is required for domestic consumption of water by individual users.
5
Section 373.216, F.S.; Fla Admin. Code R. 40A-2, 40B-2, 40C-2, 40D-2, and 40E-2 (2019).
6
See Fla. Admin. Code R. 40C-1.603 (2019), St. Johns River Water Management District’s permit fees, for an example of
various fees associated with water use permits.
7
Section 500.03(1)(d), F.S.
8
21 C.F.R. §§ 129 and 165.110 (2019)
9
Section 403.852(2), F.S, defines “public water system” as a system for the provision to the public of water for human
consumption through pipes or other constructed conveyances if such system has at least 15 service connections or regularly
serves at least 25 individuals daily at least 60 days out of the year. The term includes: (1) any collection, treatment, storage,
and distribution facility or facilities under control of the operator of such system and used primarily in connection with such
BILL: SB 1112 Page 3
403.031(13), F.S., as including, but not limited to “rivers, lakes, streams, springs, impoundments,
wetlands, and all other waters or bodies of water, including fresh, brackish, saline, tidal, surface,
or underground waters.” “Department” means the Department of Revenue.
Section 4 creates s. 211.41, F.S., establishing an excise tax levied on every person who acts as a
bottled water operator at a rate of 12.5 cents per gallon of water extracted from waters of the
state. Funds from the tax must be deposited in the Wastewater Treatment and Stormwater
Management Revolving Loan Trust Fund and used to provide grants and loans to local
governmental agencies to accelerate the implementation of water pollution control projects
pursuant to s. 403.1835, F.S.
Section 5 creates s. 211.42, F.S. Each bottled water operator must submit, by the 25th day of each
month, a return stating the amount of water extracted in the previous month, the source and
county of extraction, and the location of all facilities water was extracted from. The return must
also include a statement of the tax due. Any taxes due must be remitted with the return, and
returns must be submitted even if no taxes are due. Bottled water operators (operators) must also
file a declaration of estimated tax by the 25th day of each month following the month taxable
water extraction occurred. Operators must remit 90 percent of the estimated tax. An operator’s
declaration may be amended and the estimated tax payment will be adjusted to reflect the
change. The Department of Revenue (DOR or department) is authorized to provide credits for
any overpayments.
All related forms will be created by the DOR. If the submission due date falls on a Saturday,
Sunday, or state or federal holiday, the due date is moved to the next day that is not a Saturday,
Sunday, or holiday. The department is permitted to grant extensions upon written request.
Section 6 creates s. 211.43, F.S., providing penalties for the failure to pay the tax or file a return.
A bottled water operator that does not pay the imposed taxes on or before the due date must pay
interest at the rate of 12 percent per year until the payment is due. If taxes are due and an
operator does not file a return, the operator must pay a delinquency penalty of 10 percent of the
taxes due each month, not to exceed 50 percent. The penalty is $50 each month, not to exceed
$300, if an operator does not file a return when taxes are not due.
The bill provides that an operator that makes a substantial underpayment of taxes, a payment of
least 35 percent less than the total taxes due, must pay a penalty of 30 percent of the
underpayment. This penalty is assessed in addition to the aforementioned delinquency penalty.
An operator that makes an underpayment of estimated tax is liable for interest and a penalty,
both at the rate of 12 percent per year. The bill provides a formula for determining an
underpayment of estimated tax.
The bill also contains provisions limiting the imposition of penalties or interest for underpayment
in certain circumstances. Any penalty imposed may be settled or compromised by the DOR for
reasonable cause; interest imposed may only be settled or compromised as authorized by
s. 213.21, F.S.
system and (2) any collection or pretreatment storage facility or facilities not under control of the operator of such system but
used primarily in connection with such system.
BILL: SB 1112 Page 4
Section 7 creates s. 211.44, F.S., relating to administrative procedures and enforcement of the
tax. The bill authorizes the department to adopt rules to administer part III of ch. 211, F.S. All
state, county, and municipal agencies, boards, bureaus, departments, and districts must supply
any information the department deems necessary for the administration, collection, and
enforcement of the excise tax. Each bottled water operator must keep “suitable books and
records relating to the extraction of taxable waters of the state” to allow the department to
determine the amount of taxes due. These records must be preserved for three years after the tax
is due, in accordance with s. 213.35, F.S. The DOR is entitled to inspect the “books, records, or
papers of any bottled water operator which are reasonably required for the purposes of this part”
and to require such a person to testify under oath regarding the extraction of taxable waters. The
bill also allows the department to issue subpoenas to compel third parties to testify or to produce
records or other evidence. A circuit court having jurisdiction over such a person is permitted to
issue orders necessary to secure compliance. All required books and records must be available
for the department to inspect, upon written request, during normal business hours.
To determine whether returns have been properly filed and tax has been properly paid, the bill
allows the DOR to audit or examine the books and records of a bottled water operator. Audits
must be commenced by a written notice of intent delivered to a bottled water operated either in
person or by certified mail. The department may, without an audit, assess the nonpayment or
underpayment of taxes, interest, or penalties; the failure to file a return; the filing of a grossly
incorrect or fraudulent return; or the refusal to permit the inspection of records based upon the
best information available to the department or an estimate of amounts due. In the event of such
a deficiency, the DOR shall issue a written notice to a bottled water operator for the tax,
penalties, or interest due; the notice shall include the manner in which full payment of the total
amount assessed must be made. The burden of showing any errors in an assessment lies with an
operator.
The bill permits the department to credit or refund any overpayment revealed by an audit or for
which a timely claim for refund has been filed, the period for which is specified in s. 215.26(2),
F.S., as 3 years after the date the tax is paid.
Amounts due to the department remain as a lien upon the property, assets, and effects of a
bottled water operator until paid or collected. The department may issue a warrant for the amount
due, directed to the sheriff, if such a tax becomes delinquent or in jeopardy. Tax executions are
permitted to be levied upon any third party in possession of any assets of, or is indebted to, a
delinquent bottled water operator. The bill provides that any suit brought against any person for
violating part III of ch. 211, F.S, must be brought in circuit court.
Section 8 creates s. 211.45, F.S., establishing certain criminal penalties. A person who willfully
fails to file a return, fails to keep books or records on the extraction of water, files a fraudulent
return, willfully fails or refuses to produce said books or records, or willfully violates any
provision of this part, or any rule adopted by the department under this part, commits a first
degree misdemeanor. A person who withholds tax due under this part and willfully fails to make
remittance or purports to make remittance but willfully fails to do so commits a third degree
felony.
BILL: SB 1112 Page 5
Section 9 provides an effective date of July 1, 2020.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
Section 19(a), Article VII of the Florida Constitution limits the authority of the legislature
to enact legislation that imposes a new state tax or fee by requiring such legislation to be
approved by a 2/3 vote in each chamber of the legislature. SB 1112 imposes a 12.5 cent
per gallon excise tax on bottled water operators extracting water from waters of the state.
Because the Department of Revenue does not currently have the authority to impose such
a tax, the voting requirements found in Section 19(a), Article VII of the Florida
Constitution appear to apply.
Section 19(e), Article VII of the Florida Constitution provides that a state tax or fee
imposed, authorized, or raised must be contained in a separate bill that contains no other
subject. SB 1112 imposes a state tax and creates provisions for the administration of said
tax. It is unclear whether the bill meets the single-subject requirement or if a separate bill
is necessary.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference has not yet met regarding the bill.
B. Private Sector Impact:
Bottled water operators extracting water from state waters will be required to remit to the
Department of Revenue an excise tax of 12.5 cents per gallon of water extracted.
BILL: SB 1112 Page 6
C. Government Sector Impact:
The Department of Revenue estimates that $124,306 in nonrecurring funds will be
required in Fiscal Year 2020-2021 to modify the department’s tax systems in order to
comply with the bill’s provisions. The department would also require $18,000 in
recurring funding, beginning in Fiscal Year 2020-2021, to continue supporting the
necessary modifications.
VI. Technical Deficiencies:
None.
VII. Related Issues:
Section 3 of the bill defines a bottled water operator as a “person engaged in the business of
bottling or packaging for sale water extracted from water of the state.” Section 4 levies an excise
tax on “every person who acts as a bottled water operator at a rate of 12.5 cents per gallon of
water extracted from waters of the state.” The definition of “bottled water operator” explicitly
refers not to persons extracting the water but persons bottling or packing the water. Because the
bill seems to intend to impose the tax on persons extracting and bottling or packaging water, the
definition of “bottled water operator” may need to be revised to include such language.
Section 5 of the bill contains misleading language that could imply bottled water operators do
not have to submit taxes along with the return required by the section and that the return is
simply a report of the previous month’s water extraction. The Department of Revenue
recommends the following change to line 91 for clarity:
“(1) Each bottled water operator shall remit tax due prepare and submit to…”
Similarly, the provisions regarding both forms required to be submitted to the department use
similar language; both refer to forms prescribed by the department due on or before the 25th day
of the month. The current language does not provide a clear enough distinction between the two
forms.
Section 5 of the bill requires each bottled water operator to file a “declaration of estimated tax.”
It is unclear how an operator is to calculate estimated tax. Section 212.11, F.S., provides three
methods for taxpayers to calculate estimated tax, and s. 211.33, F.S., defines estimated tax and
prescribes an annual installment schedule for payment of estimated tax.
Lines 263-267 authorize the department to credit or refund any overpayment revealed by an
audit. Operators must submit a claim for refund within a certain period of time. The bill does not
provide a date by which the department must notify an operator of any overpayments. Without
such a notification deadline, an operator may not be notified of an overpayment within the period
of time the operator is able to submit a claim for refund.
The Department of Revenue has stated that it will be difficult to fully implement a new tax by
the bill’s effective date of July 1, 2020 and instead suggests an effective date of January 1, 2021.
BILL: SB 1112 Page 7
VIII. Statutes Affected:
This bill creates the following sections of the Florida Statutes: 211.40, 211.45, 211.41, 211.42,
211.43, and 211.44.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1112
Ì689478iÎ689478
LEGISLATIVE ACTION
Senate . House
Comm: UNFAV .
01/21/2020 .
.
.
.
The Committee on Commerce and Tourism (Gruters) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Section 373.123, Florida Statutes, is amended to
6 read:
7 373.123 Penalty.—
8 (1) Any person, real or artificial, that shall construct or
9 enlarge, or cause to be constructed or enlarged, a canal or
10 shall enlarge or deepen a natural stream in such a manner as to
Page 1 of 3
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Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1112
Ì689478iÎ689478
11 permit salt water to move inland of an established saltwater
12 barrier line, shall be guilty of a misdemeanor of the second
13 degree, punishable as provided in s. 775.083. Each day such
14 movement of salt water shall continue, shall constitute a
15 separate offense of the provisions of this law.
16 (2) Notwithstanding s. 373.129(5), if a bottled water
17 operator withdraws quantities that exceed the quantities
18 authorized in its consumptive use permit issued under part II of
19 this chapter, the bottled water operator is subject to a civil
20 penalty equal to a rate of 12.5 cents per gallon of water
21 withdrawn above such authorized quantities. The civil penalty
22 must be paid by the bottled water operator to the water
23 management district that issued the consumptive use permit and
24 such fees must be used solely by the water management district
25 for the purposes of aquifer replenishment and creating
26 alternative water supplies. As used in this subsection, the term
27 “bottled water operator” means a person engaged in the business
28 of bottling or packaging for sale water extracted from waters of
29 the state who has received a permit in accordance with part II
30 of this chapter. The term does not include a person who bottles
31 or packages water from a public water system as defined in s.
32 403.852(2).
33 Section 2. This act shall take effect upon becoming a law.
34
35 ================= T I T L E A M E N D M E N T ================
36 And the title is amended as follows:
37 Delete everything before the enacting clause
38 and insert:
39 A bill to be entitled
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Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1112
Ì689478iÎ689478
40 An act relating to bottled water consumptive use
41 permit violations; amending s. 373.123, F.S.;
42 specifying a civil penalty for a bottled water
43 operator that withdraws quantities of water exceeding
44 its consumptive use permit; requiring such penalty to
45 be paid to the water management district issuing the
46 permit, to be used for certain purposes; defining the
47 term “bottled water operator”; providing an effective
48 date.
Page 3 of 3
1/21/2020 8:21:15 AM 577-02381-20
Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1112
Ì840230cÎ840230
LEGISLATIVE ACTION
Senate . House
Comm: FAV .
01/21/2020 .
.
.
.
The Committee on Commerce and Tourism (Taddeo) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 65 - 186
4 and insert:
5 business of extracting water from waters of the state and
6 bottling or packaging the water for sale. The term does not
7 include a person who extracts and bottles or packages water from
8 a public water system as defined in s. 403.852(2).
9 (2) “Department” means the Department of Revenue.
10 (3) “Waters of the state” has the same meaning as the term
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Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1112
Ì840230cÎ840230
11 “waters” as defined in s. 403.031(13).
12 Section 4. Section 211.41, Florida Statutes, is created to
13 read:
14 211.41 Bottled water excise tax; distribution and use of
15 tax proceeds.—
16 (1) An excise tax is levied upon every person who acts as a
17 bottled water operator at a rate of 12.5 cents per gallon of
18 water extracted from waters of the state.
19 (2) The proceeds of the tax imposed by this section must be
20 deposited in the Wastewater Treatment and Stormwater Management
21 Revolving Loan Trust Fund and must be accounted for separately
22 within the fund. The tax proceeds must be used to provide grants
23 and loans to local governmental agencies pursuant to s.
24 403.1835, with priority to projects to connect existing onsite
25 sewage treatment and disposal systems to central sewerage
26 systems.
27 Section 5. Section 211.42, Florida Statutes, is created to
28 read:
29 211.42 Returns; filing requirements.—
30 (1) Each bottled water operator shall remit tax due and
31 submit to the department a return on or before the 25th day of
32 each month showing the total amount of water extracted from
33 waters of the state during the previous month, the source and
34 county of extraction, the location of all facilities from which
35 taxable water was extracted, and other information required by
36 department rule. The department shall prescribe the form of the
37 return by rule. The return must be filed on or before the last
38 day prescribed for payment of the tax and must be signed and
39 verified under oath by the bottled water operator or the bottled
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Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1112
Ì840230cÎ840230
40 water operator’s authorized representative.
41 (a) The return must include a statement of the tax due
42 under this part and such other information as the department may
43 reasonably require.
44 (b) A return must be filed even though no tax is due. Any
45 tax, penalty, or interest due must be remitted with the return.
46 (2) If any due date prescribed by this section falls on a
47 Saturday, Sunday, or state or federal holiday, the last date
48 prescribed for filing or payment is the next day that is not a
49 Saturday, Sunday, or holiday. The date of receipt by the
50 department, or the postmark date if mailed, determines the
51 timeliness of payment or filing.
52 (3) The department may grant an extension of time for
53 payment or filing of a return upon written request submitted on
54 or before the due date.
55 Section 6. Section 211.43, Florida Statutes, is created to
56 read:
57 211.43 Interest and penalties; failure to pay tax or file
58 return.—
59 (1) If any part of the tax imposed by this part is not paid
60 on or before the due date, interest must be added to the amount
61 due at the rate of 12 percent per year from the due date until
62 the date of payment.
63 (2) A bottled water operator who fails to file the return
64 required under s. 211.42 by the due date shall pay a delinquency
65 penalty. If tax is due with the return, the delinquency penalty
66 is 10 percent for each month, or portion thereof, of the amount
67 of tax due with the return, not to exceed 50 percent. If no tax
68 is due with the return, the delinquency penalty is $50 for each
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Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1112
Ì840230cÎ840230
69 month, or portion thereof, during which the return was not
70 filed, not to exceed $300 in aggregate. The amount of tax due
71 with a return must be reduced by amounts properly creditable
72 against the tax liability shown on the return on the date the
73 return was due.
74 (3) A bottled water operator who makes a substantial
75 underpayment of the tax due under this part shall pay a penalty
76 of 30 percent of the underpayment in addition to the delinquency
77 penalty imposed under subsection (2). For purposes of this
78 subsection, a substantial underpayment of tax is a deficiency of
79 tax in an amount exceeding 35 percent of the total tax due for a
80 month.
81 (4) Any penalty or interest imposed under this section is
82 deemed assessed upon the assessment of the tax and must be
83 collected and paid in the same manner as the tax.
84 (5) Any penalty imposed by this section may be settled or
85
86 ================= T I T L E A M E N D M E N T ================
87 And the title is amended as follows:
88 Delete lines 13 - 26
89 and insert:
90 monthly returns with the Department of Revenue;
91 authorizing the department to grant extensions for
92 filing and payment under certain circumstances;
93 specifying the department’s rulemaking authority;
94 creating s. 211.43, F.S.; specifying interest payable
95 on unpaid taxes; specifying the delinquency penalty
96 for failure to timely file a return; specifying the
97 penalty for the substantial underpayment of taxes;
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Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1112
Ì840230cÎ840230
98 providing construction;
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Florida Senate - 2020 SB 1112 Florida Senate - 2020 SB 1112
By Senator Taddeo
40-00351C-20 20201112__ 40-00351C-20 20201112__
1 A bill to be entitled 30 rules; requiring local governments to cooperate with
2 An act relating to a bottled water excise tax; 31 the department and furnish information without cost to
3 revising the title of ch. 211, F.S.; creating part III 32 the department for certain purposes; specifying
4 of ch. 211, F.S., entitled “Tax on Extraction of Water 33 recordkeeping requirements for bottled water
5 for Bottling”; creating s. 211.40, F.S.; defining 34 operators; specifying the department’s authority to
6 terms; creating s. 211.41, F.S.; imposing an excise 35 inspect, examine, and audit bottled water operator
7 tax upon bottled water operators; specifying the rate 36 books and records, issue subpoenas, require testimony
8 of the tax and the trust fund where tax proceeds are 37 under oath or affirmation of certain persons, and
9 to be deposited; requiring that tax proceeds be 38 apply for certain judicial orders; specifying
10 separately accounted for and be used for certain 39 requirements and procedures for the department in
11 purposes; creating s. 211.42, F.S.; specifying 40 conducting audits, assessing deficiencies, and
12 requirements for bottled water operators in filing 41 crediting or refunding overpayments; specifying
13 monthly returns and declarations of estimated tax 42 procedures and requirements for claiming refunds;
14 with, and remitting estimated taxes to, the Department 43 providing that amounts due remain a lien on certain
15 of Revenue; authorizing the department to provide for 44 property; specifying requirements and procedures for
16 credits of overpaid taxes and to grant extensions for 45 warrants and alias tax executions issued by the
17 filing and payment under certain circumstances; 46 department; requiring that suits brought by the
18 specifying the department’s rulemaking authority; 47 department for violations be brought in circuit court;
19 creating s. 211.43, F.S.; specifying interest payable 48 creating s. 211.45, F.S.; providing criminal penalties
20 on unpaid taxes; specifying the delinquency penalty 49 for certain violations; providing an effective date.
21 for failure to timely file a return; specifying the 50
22 penalty for the substantial underpayment of taxes; 51 Be It Enacted by the Legislature of the State of Florida:
23 specifying the interest payable on underpayments of 52
24 estimated taxes; providing that a penalty or interest 53 Section 1. Chapter 211, Florida Statutes, entitled “Tax on
25 for underpayment of estimated tax may not be imposed 54 Production of Oil and Gas and Severance of Solid Minerals,” is
26 under certain circumstances; providing construction; 55 retitled “Tax on Production of Oil and Gas, Severance of Solid
27 authorizing the department to settle or compromise 56 Minerals, and Extraction of Water for Bottling.”
28 taxes in accordance with certain provisions; creating 57 Section 2. The Division of Law Revision is directed to
29 s. 211.44, F.S.; authorizing the department to adopt 58 create part III of chapter 211, Florida Statutes, consisting of
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59 ss. 211.40-211.45, Florida Statutes, to be entitled “Tax on 88 read:
60 Extraction of Water for Bottling.” 89 211.42 Returns; filing requirements; estimated tax
61 Section 3. Section 211.40, Florida Statutes, is created to 90 declarations.—
62 read: 91 (1) Each bottled water operator shall prepare and submit to
63 211.40 Definitions.—As used in this part, the term: 92 the department a return on or before the 25th day of each month
64 (1) “Bottled water operator” means a person engaged in the 93 showing the total amount of water extracted from waters of the
65 business of bottling or packaging for sale water extracted from 94 state during the previous month, the source and county of
66 waters of the state. The term does not include a person who 95 extraction, the location of all facilities from which taxable
67 bottles or packages water from a public water system as defined 96 water was extracted, and other information required by
68 in s. 403.852(2). 97 department rule. The department shall prescribe the form of the
69 (2) “Department” means the Department of Revenue. 98 return by rule. The return must be filed on or before the last
70 (3) “Waters of the state” has the same meaning as the term 99 day prescribed for payment of the tax and must be signed and
71 “waters” as defined in s. 403.031(13). 100 verified under oath by the bottled water operator or the bottled
72 Section 4. Section 211.41, Florida Statutes, is created to 101 water operator’s authorized representative.
73 read: 102 (a) The return must include a statement of the tax due
74 211.41 Bottled water excise tax; distribution and use of 103 under this part and such other information as the department may
75 tax proceeds.— 104 reasonably require.
76 (1) An excise tax is levied upon every person who acts as a 105 (b) A return must be filed even though no tax is due. Any
77 bottled water operator at a rate of 12.5 cents per gallon of 106 tax, penalty, or interest due must be remitted with the return.
78 water extracted from waters of the state. 107 (2)(a) Each bottled water operator subject to the tax under
79 (2) The proceeds of the tax imposed by this section must be 108 this part shall file, on a form prescribed by the department, a
80 deposited in the Wastewater Treatment and Stormwater Management 109 declaration of estimated tax on or before the 25th day of the
81 Revolving Loan Trust Fund and must be accounted for separately 110 month following the month taxable water extraction occurred and
82 within the fund. The tax proceeds must be used to provide grants 111 shall remit to the department an amount equal to 90 percent of
83 and loans to local governmental agencies pursuant to s. 112 the estimated tax.
84 403.1835, with priority to projects to connect existing onsite 113 (b) The declaration may be amended under rules prescribed
85 sewage treatment and disposal systems to central sewerage 114 by the department. The installment due must be increased or
86 systems. 115 decreased to reflect the change in estimated tax occasioned by
87 Section 5. Section 211.42, Florida Statutes, is created to 116 the amendment.
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117 (c) The department may provide for credit of any 146 is due with the return, the delinquency penalty is $50 for each
118 overpayment of amounts due under this part which the department 147 month, or portion thereof, during which the return was not
119 determines to have been made against the installment required 148 filed, not to exceed $300 in aggregate. The amount of tax due
120 under this subsection. 149 with a return must be reduced by amounts properly creditable
121 (d) Any estimated tax paid for a month is deemed assessed 150 against the tax liability shown on the return on the date the
122 upon the last date for payment of the tax imposed under this 151 return was due.
123 part. 152 (3) A bottled water operator who makes a substantial
124 (3) If any due date prescribed by this section falls on a 153 underpayment of the tax due under this part shall pay a penalty
125 Saturday, Sunday, or state or federal holiday, the last date 154 of 30 percent of the underpayment in addition to the delinquency
126 prescribed for filing or payment is the next day that is not a 155 penalty imposed under subsection (2). For purposes of this
127 Saturday, Sunday, or holiday. The date of receipt by the 156 subsection, a substantial underpayment of tax is a deficiency of
128 department, or the postmark date if mailed, determines the 157 tax in an amount exceeding 35 percent of the total tax due for a
129 timeliness of payment or filing. 158 month.
130 (4) The department may grant an extension of time for 159 (4)(a) Except as provided in paragraph (c), a bottled water
131 payment or filing of a return upon written request submitted on 160 operator is liable for interest at the rate of 12 percent per
132 or before the due date. 161 year and a penalty at the rate of 12 percent per year on any
133 Section 6. Section 211.43, Florida Statutes, is created to 162 underpayment of estimated tax determined under this subsection.
134 read: 163 (b) An underpayment of estimated tax is the excess of:
135 211.43 Interest and penalties; failure to pay tax or file 164 1. An amount equal to 90 percent of the tax for a month
136 return; estimated tax underpayments.— 165 which is shown to be due on a return or, if no return is filed,
137 (1) If any part of the tax imposed by this part is not paid 166 90 percent of the tax finally due for the month, over
138 on or before the due date, interest must be added to the amount 167 2. The amount, if any, paid on or before the due date of
139 due at the rate of 12 percent per year from the due date until 168 the installment.
140 the date of payment. 169 (c) The period of underpayment of estimated tax begins on
141 (2) A bottled water operator who fails to file the return 170 the date the installment is due and ends on the date the
142 required under s. 211.42 by the due date shall pay a delinquency 171 underpayment is paid. A payment of estimated tax is deemed a
143 penalty. If tax is due with the return, the delinquency penalty 172 payment of a previous underpayment only to the extent the
144 is 10 percent for each month, or portion thereof, of the amount 173 payment exceeds the amount of estimated tax installment due
145 of tax due with the return, not to exceed 50 percent. If no tax 174 under subparagraph (b)1.
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175 (d) A penalty or interest for underpayment of estimated tax 204 books and records relating to the extraction of taxable waters
176 may not be imposed if the total amount of estimated tax paid on 205 of the state to enable the department to determine the amount of
177 or before the installment due date equals or exceeds the lesser 206 tax due under this part. Such books and records must be
178 of: 207 preserved until the time within which the department may make an
179 1. Ninety percent of the tax finally due for the month; or 208 assessment with respect thereto has expired in accordance with
180 2. The amount of tax determined by the tax rate applicable 209 s. 213.35.
181 for the month times the taxable production for the previous 210 (b) The department may inspect or examine the books,
182 month. 211 records, or papers of any bottled water operator which are
183 (5) Any penalty or interest imposed under this section is 212 reasonably required for the purposes of this part and may
184 deemed assessed upon the assessment of the tax and must be 213 require such person to testify under oath or affirmation or to
185 collected and paid in the same manner as the tax. 214 answer competent questions regarding such person’s business or
186 (6) Any penalty imposed by this section may be settled or 215 extraction of taxable waters of the state.
187 compromised by the department for reasonable cause in accordance 216 1. The department may issue subpoenas to compel third
188 with s. 213.21. Interest imposed by this section may be settled 217 parties to testify or to produce records or other evidence held
189 or compromised only as authorized by s. 213.21. 218 by them.
190 Section 7. Section 211.44, Florida Statutes, is created to 219 2. Any duly authorized representative of the department may
191 read: 220 administer an oath or affirmation.
192 211.44 Administration and enforcement; books and records; 221 3. If any person fails to comply with a request of the
193 refunds.— 222 department for the inspection of records, fails to give
194 (1) The department may adopt rules to administer this part, 223 testimony or respond to competent questions, or fails to comply
195 including prescribing the form and content of returns and 224 with a subpoena, a circuit court having jurisdiction over such
196 reports. 225 person may, upon application by the department, issue orders
197 (2) All state, county, or municipal agencies, boards, 226 necessary to secure compliance.
198 bureaus, departments, or districts shall cooperate with the 227 (c) All books and records required to be kept under this
199 department and furnish any information the department deems 228 subsection must be available for inspection by the department
200 necessary, without cost to the department, for the purposes of 229 upon written request during normal business hours.
201 administering, collecting, or enforcing the tax imposed under 230 (4) The department may audit or examine the books and
202 this part. 231 records of a bottled water operator to determine whether returns
203 (3)(a) Each bottled water operator shall keep suitable 232 have been properly filed and tax has been properly paid. An
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233 audit may be commenced for any month for which the power of the 262 department in its notice.
234 department to make an assessment of amounts due under this part 263 (6)(a) The department may credit or refund any overpayments
235 is available. An audit must be commenced by service of a written 264 of amounts due under this part which are revealed by an audit or
236 notice of intent to audit upon the bottled water operator, 265 for which a timely claim for refund has been properly filed.
237 either in person or by certified mail. The date of personal 266 (b) A claim for refund may be filed within the period
238 contact or the date of the notice governs the period subject to 267 specified in s. 215.26(2).
239 audit. If there is jeopardy to the revenue and jeopardy is 268 (c) A claim for refund must be signed by the bottled water
240 asserted in or with an assessment, the department must proceed 269 operator or the bottled water operator’s duly authorized
241 in the manner specified for jeopardy assessment in s. 213.732. 270 representative, successor, or assignee and must include
242 (5)(a) The department may assess, with or without an audit, 271 information the department requires to determine the correctness
243 any deficiency resulting from nonpayment or underpayment of the 272 of the claim.
244 tax, interest, or penalties imposed by this part. The department 273 (7)(a) Amounts due under this part remain a lien upon the
245 shall inform the bottled water operator by written notice of the 274 property, assets, and effects of a bottled water operator until
246 amount of any deficiency or overpayment revealed by an audit, 275 paid or until collection thereof is barred under s. 95.091 and
247 including the tax, interest, or penalties due, and shall explain 276 may be recovered by the department, on behalf of the state, by
248 the basis for the determination. 277 an action in any county where the property, assets, or effects
249 (b) The department may make an assessment under this part 278 of the bottled water operator are located.
250 based upon the best information available to it. The department 279 (b) When any tax imposed by this part becomes delinquent or
251 may make an assessment based upon an estimate of amounts due 280 is otherwise in jeopardy, the department may issue a warrant for
252 under this part if a bottled water operator fails to file a 281 the full amount due or estimated to be due, including the tax,
253 return, files a grossly incorrect or fraudulent return, or 282 penalties, interest, and costs of collection. The warrant must
254 refuses to permit inspection of records. An assessment of the 283 be directed to each sheriff and may be recorded with the clerk
255 amounts due under this part is deemed prima facie correct and 284 of the circuit court in any county where the bottled water
256 the bottled water operator has the burden of showing any error 285 operator’s property is located. Upon recording, the clerk of the
257 in it. 286 circuit court shall execute the warrant in the same manner
258 (c) In the event of a deficiency, the department shall 287 prescribed by law for executions upon judgments and is entitled
259 issue its written notice to a bottled water operator for the 288 to the same fees for this service. Upon payment of the warrant,
260 tax, penalties, or interest due. Full payment of the total 289 the department shall satisfy the lien of record within 30 days.
261 amount assessed must be made in the manner prescribed by the 290 Thereafter, any interested person may compel the department to
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291 satisfy the lien of record. 320 any provision of this part or any rule adopted by the department
292 (c) An alias tax execution may be issued whenever the 321 under this part commits a misdemeanor of the first degree,
293 department deems it necessary. Each alias tax execution must be 322 punishable as provided in s. 775.082 or s. 775.083.
294 so designated on its face and has the same force and effect as 323 (2) A person who withholds tax due under this part and
295 the original. 324 willfully fails to make remittance as required by this part or
296 (d) Tax executions may be levied upon any third party who 325 who purports to make payments due under this part but willfully
297 is in possession or control of any assets of a delinquent 326 fails to do so because the remittance fails to clear the bank or
298 bottled water operator or who is indebted to a delinquent 327 depository institution against which it is drawn commits a
299 bottled water operator. Such tax executions have the force and 328 felony of the third degree, punishable as provided in s.
300 effect of a writ of garnishment. The third party shall pay the 329 775.082, s. 775.083, or s. 775.084.
301 debt or deliver the assets of the delinquent bottled water 330 Section 9. This act shall take effect July 1, 2020.
302 operator to the department, and receipt by the department
303 discharges the third party completely to the extent of the debt
304 paid or assets surrendered to the department.
305 (e) When any tax execution becomes void, the department may
306 cancel it of record and shall do so upon the request of any
307 interested person.
308 (8) Any employee of the department may be designated by the
309 executive director to make and sign assessments, tax warrants,
310 and satisfactions of tax warrants.
311 (9) Any suit brought by the department against any person
312 for violating this part must be brought in circuit court.
313 Section 8. Section 211.45, Florida Statutes, is created to
314 read:
315 211.45 Criminal penalties.—
316 (1) A person who willfully fails to file a return or keep
317 books or records on the extraction of taxable waters of the
318 state, who files a fraudulent return, who willfully fails or
319 refuses to produce books or records, or who willfully violates
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The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1244
INTRODUCER: Senator Albritton
SUBJECT: State Workforce Development Boards
DATE: January 17, 2020 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. McMillan McKay CM Favorable
2. IT
3. RC
I. Summary:
SB 1244 amends the structure of Florida’s Workforce Development System. The bill:
Replaces CareerSource Florida, Inc. (CareerSource) with the state board or the Department
of Economic Opportunity (DEO) in provisions relating to the implementation of the WIOA;
Clarifies the purpose, operation, and structure of CareerSource and the state board;
Requires the state board, rather than CareerSource, to produce a state plan that creates an
educated and skilled workforce;
Clarifies the duties of the local workforce development boards;
Replaces CareerSource with the state board or the DEO in provisions relating to Florida’s
Youth Summer Jobs Pilot Program;
Authorizes the state board to create and administer the Workforce Training Institute;
Restructures the organization of the one-stop delivery system;
Replaces CareerSource with the DEO in provisions relating to workforce information
systems and transitional services;
Requires the DEO to consult with the state board in provisions relating to workforce
information systems; and
Replaces CareerSource with the state board in provisions relating to individual development.
The bill takes effect July 1, 2020.
II. Present Situation:
Florida’s Workforce Development System
The federal Workforce Investment Act of 1998 (WIA) was passed by Congress in an effort to
improve the quality of the nation’s workforce through implementation of a comprehensive
BILL: SB 1244 Page 2
workforce investment system.1 The WIA required each state to establish an investment board at
the state level and to also establish workforce investment boards to represent local service areas.2
The WIA also called for the delivery of workforce development services through a system of
“one-stop” centers in local communities.3 Some key principles of the WIA were to better
integrate workforce services, empower individuals, provide universal access to participants,
increase accountability, and improve youth programs.4
In response to the WIA, Florida established a workforce development system under the
Workforce Investment Act of 2000.5 The act aimed to better connect the state’s economic
development strategies with its workforce development system and to implement the principles
of the federal WIA.6
Federal Workforce Innovation and Opportunity Act of 2014
In 2014, Congress passed the Workforce Innovation and Opportunity Act (WIOA), which
superseded the Workforce Investment Act of 1998.7 The WIOA requires each state to develop a
single, unified plan for aligning workforce services through the identification and evaluation of
core workforce programs.8 In general, the WIOA maintains the one-stop framework of the WIA,
and encompasses provisions aimed at streamlining services, easing reporting requirements, and
reducing administrative barriers.9 The WIOA officially became effective on July 1, 2015, the
first full program year after enactment.
Core Programs
The WIOA identifies four core programs that must coordinate and complement each other in a
manner that ensures job seekers have access to needed resources.10 The core programs are:
Adult, Dislocated Worker and Youth Programs;
Employment Services under the Wagner-Peyser Employment Act;
Vocational Rehabilitation Services; and
Adult Education and Literacy Activities.
Performance Measures
In an effort to promote transparency and accountability, the WIOA created a single set of
common measures for the evaluation of core programs.11 The WIOA requires performance
reports to be provided at the state, local, and trainer provider levels. The performance measures
that now apply across all core programs are:
The percentage of participants in unsubsidized employment during second quarter after exit;
The percentage of participants in unsubsidized employment during fourth quarter after exit;
1
Workforce Investment Act of 1998, 29 U.S.C. § 2801 (1998), repealed by Workforce Innovation and Opportunity Act, Pub.
L. No. 113-128, H.R. 803, 113th Cong. (July 22, 2014)(codified at 29 U.S.C. § 3101, et seq.).
2
See 29 U.S.C. § 2821 and 29 U.S.C. § 2832 (1998).
3
See 29 U.S.C. § 2841 (1998).
4
See 29 U.S.C. § 2811 (1998).
5
Chapter 2000-165, Laws of Fla.
6
See s. 445.003, F.S.
7
Workforce Innovation and Opportunity Act, 29 U.S.C. § 3101 et seq. (2014).
8
See 29 U.S.C. § 3112(a).
9
See 29 U.S.C. § 3111.
10
See 29 U.S.C. § 3102(13).
11
See 29 U.S.C. § 3141.
BILL: SB 1244 Page 3
The median earnings of participants during second quarter after exit;
The percentage of participants who obtain a postsecondary credential or secondary school
diploma within 1 year after exit;
The achievement of measureable skill gains toward credentials or employment; and
The effectiveness in serving employers.
State Workforce Development Plan
Using the common performance measures for core programs, the WIOA requires each state to
develop and submit a unified state plan based on a 4-year strategy for workforce development.12
The state plan must describe an overall strategy for the core programs and how the strategy will
meet needs for workers, job seekers, and employers.13 The WIOA also provides an option for
states to submit a combined plan that outlines plans for the core programs along with additional
workforce programs.14
Regional Planning and Local Workforce Development Boards
The WIOA requires states to identify regional planning areas for workforce development
strategies.15 Within each area, a local workforce development board must be established.16 Each
local workforce development board is required to coordinate planning and service delivery
strategies within their area.17 Formulated strategies are then used by the local workforce
development board to develop and submit a local plan for the delivery of workforce services.18
One-Stop Delivery System
The WIOA aims to strengthen the one-stop delivery system by requiring each local area to have
at least one comprehensive one-stop delivery provider.19 A comprehensive one-stop delivery
provider supplies physical access to services provided by core partners, as well as other
mandatory partners.20 The WIOA mandates that each partner shares in the funding of services
and infrastructure costs of the one-stop delivery system.21
Florida’s Implementation of The WIOA
In 2016, Florida made changes to the workforce development system to conform to the new
federal guidelines established by the WIOA.22 Under the current workforce development system,
the DEO, CareerSource, and 24 local workforce development boards act as partners in
administering Florida’s comprehensive system for the delivery of workforce strategies, services,
and programs.
12
See 29 U.S.C. § 3112(a).
13
See 29 U.S.C. § 3112(b).
14
See 29 U.S.C. § 3113.
15
See 29 U.S.C. § 3121.
16
Id.
17
See 29 U.S.C. § 3122.
18
See 29 U.S.C. § 3123.
19
See 29 U.S.C. § 3151.
20
Other mandatory partners may include programs under the Older Americans Act, Adult Education and Literacy,
Department of Housing and Urban Development, Social Security Act, Perkins Career and Technical Education Act, and the
Community Service Block Grant Act. 29 U.S.C. § 3151(b).
21
See 29 U.S.C. § 3151(2).
22
Chapter 2016-216, Laws of Fla.
BILL: SB 1244 Page 4
The Department of Economic Opportunity
The DEO serves as Florida’s lead workforce agency.23 The DEO is responsible for the fiscal and
administrative affairs of the workforce development system.24 The DEO receives and distributes
federal funds for employment-related programs to the local workforce development boards.25
Additionally, under the direction of CareerSource, the DEO must annually meet with each local
workforce development board to review the board’s performance and to certify that the board is
in compliance with applicable state and federal law.26
CareerSource Florida, Inc.
CareerSource Florida, Inc., a not-for-profit corporation, serves as Florida’s state-level workforce
development board.27 CareerSource is responsible for the development of a 4-year plan that is
consistent with the requirements of the WIAO28 and collaborates with the DEO, the local
workforce development boards, and one-stop service providers to ensure workforce services are
consistent with state and local plans.29 CareerSource also provides state-level policy direction,
planning, and performance evaluation of the delivery of workforce services.30
Local Workforce Development Boards
Twenty-four local workforce development boards deliver Florida’s workforce development
services through over 100 one-stop service providers.31 The one-stop service providers give
Floridians access to available workforce services; including job placement, career counseling,
and skills training.32 Collectively, the local workforce development boards operate under a
charter approved by CareerSource.33 Each local workforce development board formulates a local
budget and oversees the one-stop delivery system within its local area.34
III. Effect of Proposed Changes:
Workforce Services
Section 1 amends s. 445.002, F.S., to define the terms “for cause” and “state board.”
“For cause” includes, but is not limited to, engaging in fraud or other criminal acts,
incapacity, unfitness, neglect of duty, official incompetence and irresponsibility,
misfeasance, malfeasance, nonfeasance, or lack of performance. The “for cause” standard is
used in ch. 445, F.S., as a standard by which:
o the Governor may remove a member of a local board; and,
23
Primarily through the Division of Workforce Services. See s. 20.60, F.S.
24
Section 445.009(3)(c), F.S.
25
See s. 445.003, F.S.
26
See s. 445.007(3), F.S.
27
Section 445.004(5)(a), F.S. Prior to 2014, CareerSource was known as Workforce Florida, Inc.
28
Section 445.003(2), F.S.
29
See s. 445.004, F.S.
30
Id.
31
Florida Department of Economic Opportunity, CareerSource Florida Network Directory, http://lcd.floridajobs.org/ (last
visted Jan. 17, 2020).
32
See s. 445.009, F.S.
33
See s. 445.004, F.S.
34
Section 445.007(12), F.S.
BILL: SB 1244 Page 5
o a chief elected official may remove a member of a local board.
“State board” means the state workforce development board established pursuant to the
Workforce Innovation and Opportunity Act. The state board shall be supported by
CareerSource, which works at the direction of the state board in consultation with the DEO
as required by ch. 445, F.S.
Implementation of the Federal Workforce Innovation and Opportunity Act
Section 2 makes numerous changes to the procedures relating to the implantation of the WIOA
in s. 445.003, F.S.
The bill replaces CareerSource with the state board or the DEO in provisions relating to the
implementation of the WIOA.
The state board must prepare and submit a 4-year plan, consistent with the requirements of
the WIOA.
Title I, WIOA, Wagner-Peyser, and NAFTA/Trade Act funds will be expended based on the
4-year plan of the state board.
A local workforce board must use at least 50 percent of the Title I funds for Adults and
Dislocated Workers on Individual Training Accounts35 unless a waiver is obtained from the
state board.
State administration costs include the costs of funding for the state board and state board
staff; operating fiscal, compliance, and management accountability systems though the
department conducting evaluation and research on workforce development activities; and
providing technical and capacity building assistance to local workforce development areas at
the direction of the state board.
Individual Training Accounts and other workforce development strategies for other training
is designed and tailored by the DEO in consultation with the state board.
Individual Training Accounts for distressed urban and rural communities must be designed,
adopted, and funded by the DEO in consultation with the state board.
The state board may establish guidelines necessary to implement the Incumbent Worker
Training Program.
The DEO must maintain an Emergency Preparedness Fund from Rapid Response funds.
All Rapid Response funds must be expended based on a plan developed by the state board in
consultation with the DEO.
The state board, in consultation with the DEO may make modifications to the state’s plan,
policies, and procedures to comply with federally mandated requirements the must be
complied with to maintain funding.
The state board must enter into a memorandum of understanding with the Florida
Department of Education to ensure that federally mandated requirements are met and are in
compliance with the state plan for workforce development.
The state board may recommend workforce related divisions, bureaus, units, programs,
duties, commissions, boards, and councils for elimination, consolidation, or privatization.
35
Individual Training Account expenditures include tuition, books, and fees of training providers and other training services
authorized by the WIOA. See s. 445.003, F.S.
BILL: SB 1244 Page 6
The bill permits $2 million of the Title I funds retained at the state level to be reserved for the
Incumbent Worker Training Program.36
The bill creates a new subsection (6) in s. 445.003, F.S., which authorizes the state board to hire
a director and staff that must be authorized by the state board to work with the DEO in carrying
out the functions of the WIOA.
CareerSource and the State Board
Section 3 amends s. 445.004, F.S., to revise provisions relating to the purpose, operation, and
organizational structure of CareerSource and the state board.
CareerSource must operate at the direction of the state board, and under an agreement with
the DEO.
CareerSource provides administrative support for the state board.
The purpose of the state board is to design and implement strategies to foster Florida’s
workforce development system.
CareerSource must implement the policy directives of the state board and administer state
workforce development programs.
All provisions stating that CareerSource must be governed by a board of directors are
removed, and “board of directors” is replaced with the “state board.”
The state board is the board of directors of CareerSource.
The state board is required to hire an executive director, and the executive director is the
president, the chief executive officer, and an employee of CareerSource.
The president of CareerSource serves at the pleasure of the Governor.
The state board is authorized to provide policy direction to ensure the DEO is properly
administering workforce development activities to conform to approved plans.37
The DEO may consult with the state board to issue technical assistance letters on the
operation of federal programs and the expenditure of federal funds by the state board or any
workforce development board.38
o A technical assistance letter must be in writing, posted on the DEO’s website, and
remains in effect until superseded or terminated.
The state board is authorized to notify the Governor and the DEO of statewide or local
workforce development and training needs that may require policy changes or an update to
the state plan.
The state board must have a policy that all resources and equipment purchased for training
WIOA clients be available for use at all times by eligible populations.
The state board may make expenditures to recognize performance and for promotional items.
36
The Incumbent Worker Training Program helps workers by providing grant funding for continuing education and training
of incumbent employees at existing Florida businesses. See s. 445.003, F.S.
37
Authorized workforce development activities include the following: Programs authorized under Title I of the WIOA, the
Wagner-Peyser Act of 1993, Title II of the Trade Act of 2002, employment and training activities carried out under funds
awarded to Florida by the United States Department of Housing and Urban Development, welfare transition services funded
by the Temporary Assistance for Needy Families Program, the Florida Bonding Program, the Food Assistance Employment
and Training Program, the Quick-Response Training Program, and the Work Opportunity Tax Credit. See s. 445.004, F.S.
38
The bill establishes that a technical assistance letter is not a declaratory statement issued pursuant to s. 120.565, F.S., an
order issued pursuant to s. 120.569, F.S., or a rule of general applicability under s. 120.54, F.S. Section 120.53, F.S., does not
apply to technical assistance letters.
BILL: SB 1244 Page 7
The state board must submit a complete and detailed annual report by December 1 of each
year to the Governor, the President of the Senate, and the Speaker of the House of
Representatives.
The Auditor General is authorized to conduct an audit of the state board and CareerSource, or
the programs and entities created by the state board.
The state board must establish uniform performance accountability measures that monitor the
performance of the state and local workforce development boards in achieving the workforce
development strategy.
o The performance accountability measures of success that are adopted by the state board,
or the local workforce development boards must provide an equitable comparison of the
relative success or failure of any service provider.
The workforce development strategy for Florida must be designed by the state board, in
consultation with the DEO, and approved by the Governor.
The workforce development system must encourage local design and control of service
delivery and targeted activities.
The state board, in consultation with the DEO, must ensure that local workforce development
boards have a valid membership and have developed an adequate plan.
The bill establishes that the state board must establish proper incentives, outline rewards for
successful job placements, and institute collaborative approaches among local service providers.
The bill clarifies that CareerSource, under the direction of the state board, must enter into an
agreement with Space Florida and collaborate with vocational institutes, community colleges,
colleges, and universities in Florida to develop and implement a workforce development
strategy.
State Plan for Workforce Development
Section 4 amends s. 445.006, F.S., to require the state board, rather than CareerSource, to take
actions relating to the state plan for workforce development.
The bill provides that the state board in conjunction with state and local partners, must produce a
state plan that creates an educated and skilled workforce, as well as develop strategic planning
elements and operational planning elements for the state plan.
Local Workforce Development Boards
Section 5 amends s. 445.007, F.S., to clarify the structure and duties of the local workforce
development boards.39
The state board is authorized to waive the requirement that a local board must appoint a
representative of a private education provider to the local board, as long as, a local workforce
board requests a waiver, and it is demonstrated that a representative of a private education
provider does not exist in the region.
The DEO must assign staff to meet with each local workforce development board annually to
review performance and compliance with state and federal law.
39
The bill also refers to “local workforce development boards” as “local boards.”
BILL: SB 1244 Page 8
The DEO approves a local workforce development board’s administrative entity.
The DEO, in conjunction with the state board, must provide a training program for the local
workforce development boards to familiarize them with the state’s workforce development
goals.
The state board is required to create procedures for the local workforce development boards
to request permission to operate under s. 445.007, F.S.
The local workforce development boards are required to adopt a committee structure
consistent with state policies and federal law established by the state board.
The local workforce development boards are required to apply the procurement and
expenditure procedures required by federal law, as well as, policies created by the DEO and
the state board.
Unless authorized by state law, the state board and the DEO may not use state and federal
funds provided to the local workforce development boards to pay for food or beverages for
board members, staff, or employees of the local workforce development boards.
The DEO must monitor and provide fiscal or programmatic guidance to the state board,
CareerSource, and all workforce development boards.
A local workforce development board is required to receive approval from the DEO before
contracting with a member of the local board, a relative of a member of the local board, or an
employee of the local board.
o A contract under $25,000 between a local workforce development board and a member of
that board, a relative of a local board member, or an employee of the local board is not
required to receive prior approval by the DEO.40
Each local workforce development board is required to submit its annual budget to the DEO
for review.
The bill deletes a provision defining the term “cause.”41
The bill creates a provision that allows the chief elected official for the local workforce
development board to remove a member of the local board, the executive director of the local
board, or the designated person responsible for the operation and administration of the local
board for cause.
Florida Youth Summer Jobs Pilot Program
Section 6 amends s. 445.0071, F.S., to replace CareerSource with the state board or the DEO in
provisions relating to the Florida Youth Summer Jobs Pilot Program.42
The Broward Workforce Development Board, in consultation with the state board, must
provide a program offering at-risk and disadvantaged children summer jobs.
The pilot program must be administered by the local workforce development board in
consultation with the state board.
40
Such contracts must be approved by a two-thirds vote of the local board, and must be reported to the DEO and the state
board within 30-days of approval. See s. 445.007, F.S.
41
The bill amends s. 445.002, F.S., to define the term “for cause.”
42
The Florida Youth Summer Jobs Pilot Program was developed within workforce development district 22, which is served
by the Broward Workforce Development Board. The program offers at-risk and disadvantaged children summer jobs in
partnership with local communities and public employees. See s. 445.0071, F.S.
BILL: SB 1244 Page 9
The Broward Workforce Development Board must report to the state board and the DEO.43
The state board must report the performance of the program to the Legislature by November
1 of each year.
Workforce Training Institute
Section 7 makes numerous changes to the organization and procedures of the Workforce
Training Institute in s. 445.008, F.S.
The bill authorizes the state board, through CareerSource, to create the Workforce Training
Institute and to engage in necessary administrative functions. Additionally, the bill requires
CareerSource to report all donations and grants they receive to the state board and the DEO.
One-stop Delivery System
Section 8 amends s. 445.009, F.S., to replace CareerSource with the state board or the DEO in
provisions relating to one-stop delivery systems.
Subject to a process designed by the state board, local workforce development boards must
designate one-stop delivery system operators.
The DEO approves the designation of one-stop delivery system operators.44
The state board, in conjunction with the DEO, may notify the Governor of any one-stop
delivery system partners that fail to enter into an understanding with the local workforce
development board.
The state board, the DEO, and local workforce development boards must create a centralized
help center to assist local workforce development boards.
The state board must develop an implementation plan for intensive services and training that
is provided to individuals through Intensive Service Accounts and Individual Training
Accounts.
The DEO must periodically review Individual Training Account pricing schedules and
present findings and recommendations for process improvement to the President of the
Senate and the Speaker of the House of Representatives.
The state board must develop a system to foster the leveraging of appropriated resources for
the workforce system and must report on such efforts in the annual report.
The state board and the DEO must coordinate a plan among the agencies for a One-Stop
Electronic Network.
Workforce Information Systems
Section 9 amends s. 445.011, F.S., to replace CareerSource with the DEO and to require the
DEO to consult with the state board in provisions relating to workforce information systems.
43
The report must include the number of at-risk and disadvantaged children who enter the program, the types of work
activities they participate in, and the number of children who return to school, go on to postsecondary school, or enter the
workforce full time at the end of the program. See s. 445.0071, F.S.
44
The bill provides that the DEO must require the local workforce development board to demonstrate that safeguards are in
place to ensure fair competition and practices.
BILL: SB 1244 Page 10
The DEO, in consultation with the state board, must implement automated information
systems.
The DEO is authorized to procure independent verification and validation services associated
with developing and implementing any workforce information system.
The DEO must coordinate development and implementation of workforce information
systems with the state chief information officer.
Transitional Benefits and Services
Section 10 amends s. 445.028, F.S., to replace CareerSource with the DEO in provisions relating
to transitional benefits and services.
In cooperation with DEO, the Department of Children and Families (DCF) must develop
procedures to ensure that families leaving the temporary cash assistance program (TCA)45
receive transitional benefits and services.
The DEO and the DCF must develop procedures to maximize the utilization of transitional
Medicaid by families who leave the TCA program.
Individual Development Accounts
Section 11 amends s. 445.051, F.S., to replace CareerSource with the state board in provisions
relating to individual development.
The state board must establish procedures for local workforce development boards to
include in their annual program and financial plan an application to offer an individual
development account program46 as part of their Temporary Assistance for Needy
Families (TANF)47 allocation.
The state board must establish policies and procedures to ensure that funds held in an
individual development account are not withdrawn without a qualified purpose.
The state board must establish procedures for controlling the withdrawal of funds for uses
other than qualified purposes.
Pursuant to policy direction by the state board, the DEO must adopt the rules necessary to
implement s. 445.051, F.S.
Authority for Audits
Section 12 amends s. 11.45, F.S., to clarify that the Auditor General may conduct audits of
CareerSource, the state board, and the programs created by the state board.
45
The Temporary Cash Assistance Program provides cash assistance to families with children under the age of 18 or under
the age of 19 if the child is a full time high school student. The program helps support families while allowing children to
remain in their homes. See Florida Department of Children and Families, Temporary Cash Assistance (TCA)
https://www.myflfamilies.com/service-programs/access/temporary-cash-assistance.shtml (last visited Jan. 17, 2020).
46
An Individual Development Account is a special bank account that helps low income families save for the purchase of a
home, education expenses, or to start a business. See Social Security Administration, Spotlight on Individual Development
Accounts (2019) https://www.ssa.gov/ssi/spotlights/spot-individual-development.htm (last visited Jan. 17, 2020).
47
The Temporary Assistance for Needy Families program is a federal grant that provides funding for cash welfare to needy
families with children. See Florida Department of Children and Families, Temporary Assistance for Needy Families (January
2016) https://www.myflfamilies.com/service-programs/access/docs/TANF%20101%20final.pdf (last visited Jan. 17, 2020).
BILL: SB 1244 Page 11
DEO Powers and Duties
Section 13 amends s. 443.171, F.S., to provide that the DEO must submit information to the state
board annually as required by law.
Effective Date
Section 14 provides that the bill takes effect July 1, 2020.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
The impacted governmental organizations will have to update their internal structures or
policies in the administration and oversight of Florida’s Workforce Development System.
The costs are indeterminate, but expected to be minimal.
BILL: SB 1244 Page 12
VI. Technical Deficiencies:
None.
VII. Related Issues:
Lines 249-255 permit, but do not require, the state board to hire a “director.” However, lines
346-350 require the state board to hire an “executive director.” If the terms refer to the same
position, the bill would be less susceptible to misinterpretation by using the same term.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 445.002, 445.003,
445.004, 445.006, 445.007, 445.0071, 445.008, 445.009, 445.011, 445.028, 445.051, 11.45,
443.171.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2020 SB 1244 Florida Senate - 2020 SB 1244
By Senator Albritton
26-00826B-20 20201244__ 26-00826B-20 20201244__
1 A bill to be entitled 30 General to conduct an audit of the state board and
2 An act relating to state workforce development boards; 31 programs or entities created by the state board;
3 amending s. 445.002, F.S.; defining the terms “for 32 requiring the state board, rather than CareerSource
4 cause” and “state board”; amending s. 445.003, F.S.; 33 Florida, Inc., to establish certain uniform
5 replacing CareerSource Florida, Inc., with the state 34 performance accountability measures; requiring the
6 board or the Department of Economic Opportunity in 35 state board, in consultation with the department, to
7 provisions relating to the implementation of the 36 design the workforce development strategy for the
8 federal Workforce Innovation and Opportunity Act; 37 state; requiring that the strategy be approved by the
9 authorizing, rather than requiring, certain funds to 38 Governor; revising requirements relating to the
10 be reserved for the Incumbent Worker Training Program; 39 workforce development system; amending s. 445.006,
11 conforming provisions to changes made by the act; 40 F.S.; requiring that the state board, rather than
12 authorizing the state board to hire a director and 41 CareerSource Florida, Inc., take certain actions
13 staff; requiring the state board to authorize the 42 relating to the state plan for workforce development;
14 director and staff to work with the department for 43 amending s. 445.007, F.S.; replacing CareerSource
15 specified reasons; amending s. 445.004, F.S.; revising 44 Florida, Inc., with the state board or the department
16 provisions relating to the operation of CareerSource 45 in provisions relating to local workforce development
17 Florida, Inc.; revising the purpose of CareerSource 46 boards; deleting the definition of the term “cause”;
18 Florida, Inc.; providing purpose for the state board; 47 authorizing a chief elected official for a local
19 revising the organizational structure of CareerSource 48 workforce development board to remove certain persons
20 Florida, Inc.; providing requirements for the 49 from the board for cause; requiring the department to
21 organizational structure of the state board; providing 50 provide certain guidance to specified entities;
22 the state board with powers and authority previously 51 deleting an obsolete provision; making technical
23 held by CareerSource Florida, Inc.; revising the 52 changes; amending s. 445.0071, F.S.; replacing
24 requirements related to such powers and authority; 53 CareerSource Florida, Inc., with the state board or
25 authorizing the department to consult with the state 54 the department in provisions relating to the Florida
26 board to issue certain technical assistance letters; 55 Youth Summer Jobs Pilot Program; amending s. 445.008,
27 requiring the state board, rather than CareerSource 56 F.S.; revising authority relating to the Workforce
28 Florida, Inc., to submit an annual report to the 57 Training Institute; requiring that certain donations
29 Governor and the Legislature; authorizing the Auditor 58 and grants be reported to the state board and the
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59 department; amending s. 445.009, F.S.; replacing 88 in fraud or other criminal acts, incapacity, unfitness, neglect
60 CareerSource Florida, Inc., with the state board or 89 of duty, official incompetence and irresponsibility,
61 the department in provisions relating to one-stop 90 misfeasance, malfeasance, nonfeasance, or lack of performance.
62 delivery systems; deleting an obsolete provision; 91 (4) “State board” means the state workforce development
63 amending s. 445.011, F.S.; replacing CareerSource 92 board established pursuant to the Workforce Innovation and
64 Florida, Inc., with the department in provisions 93 Opportunity Act, Pub. L. No. 113-128, Title I, s. 101. The state
65 relating to workforce information systems; requiring 94 board shall be supported by CareerSource Florida, Inc., which
66 the department to consult with the state board in 95 works at the direction of the state board in consultation with
67 implementing certain automated information systems; 96 the department as required by this chapter.
68 deleting a provision requiring CareerSource Florida, 97 Section 2. Subsections (2) and (3), paragraphs (b) and (c)
69 Inc., to take certain actions when procuring workforce 98 of subsection (4), and subsection (5) of section 445.003,
70 information systems; amending s. 445.028, F.S.; 99 Florida Statutes, are amended, and subsection (6) is added to
71 replacing CareerSource Florida, Inc., with the 100 that section, to read:
72 department in provisions relating to transitional 101 445.003 Implementation of the federal Workforce Innovation
73 benefits and services; amending s. 445.051, F.S.; 102 and Opportunity Act.—
74 replacing CareerSource Florida, Inc., with the state 103 (2) FOUR-YEAR PLAN.—The state board CareerSource Florida,
75 board in provisions relating to individual development 104 Inc., shall prepare and submit a 4-year plan, consistent with
76 accounts; amending ss. 11.45 and 443.171, F.S.; 105 the requirements of the Workforce Innovation and Opportunity
77 conforming provisions to changes made by the act; 106 Act. Mandatory and optional federal partners shall be fully
78 providing an effective date. 107 involved in designing the plan’s one-stop delivery system
79 108 strategy. The plan must clearly define each program’s statewide
80 Be It Enacted by the Legislature of the State of Florida: 109 duties and role relating to the system. The plan must detail a
81 110 process that would fully integrate all federally mandated and
82 Section 1. Present subsections (2) and (3) of section 111 optional partners.
83 445.002, Florida Statutes, are redesignated as subsections (3) 112 (3) FUNDING.—
84 and (5), respectively, and new subsections (2) and (4) are added 113 (a) Title I, Workforce Innovation and Opportunity Act
85 to that section, to read: 114 funds; Wagner-Peyser funds; and NAFTA/Trade Act funds will be
86 445.002 Definitions.—As used in this chapter, the term: 115 expended based on the 4-year plan of the state board
87 (2) “For cause” includes, but is not limited to, engaging 116 CareerSource Florida, Inc. The plan must outline and direct the
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117 method used to administer and coordinate various funds and 146 allocated to Individual Training Accounts and other workforce
118 programs that are operated by various agencies. The following 147 development strategies for other training designed and tailored
119 provisions apply to these funds: 148 by the department in consultation with the state board
120 1. At least 50 percent of the Title I funds for Adults and 149 CareerSource Florida, Inc., including, but not limited to,
121 Dislocated Workers which are passed through to local workforce 150 programs for incumbent workers, nontraditional employment, and
122 development boards shall be allocated to and expended on 151 enterprise zones. The department, in consultation with the state
123 Individual Training Accounts unless a local workforce 152 board CareerSource Florida, Inc., shall design, adopt, and fund
124 development board obtains a waiver from the state board 153 Individual Training Accounts for distressed urban and rural
125 CareerSource Florida, Inc. Tuition, books, and fees of training 154 communities.
126 providers and other training services prescribed and authorized 155 3. The Incumbent Worker Training Program is created for the
127 by the Workforce Innovation and Opportunity Act qualify as 156 purpose of providing grant funding for continuing education and
128 Individual Training Account expenditures. 157 training of incumbent employees at existing Florida businesses.
129 2. Fifteen percent of Title I funding shall be retained at 158 The program will provide reimbursement grants to businesses that
130 the state level and dedicated to state administration and shall 159 pay for preapproved, direct, training-related costs.
131 be used to design, develop, induce, and fund innovative 160 a. The Incumbent Worker Training Program will be
132 Individual Training Account pilots, demonstrations, and 161 administered by CareerSource Florida, Inc., which may, at its
133 programs. Of such funds retained at the state level, $2 million 162 discretion, contract with a private business organization to
134 may shall be reserved for the Incumbent Worker Training Program 163 serve as grant administrator.
135 created under subparagraph 3. Eligible state administration 164 b. The program shall be administered pursuant to s.
136 costs include the costs of funding for the state board and state 165 134(d)(4) of the Workforce Innovation and Opportunity Act.
137 board staff of CareerSource Florida, Inc.; operating fiscal, 166 Priority for funding shall be given to businesses with 25
138 compliance, and management accountability systems through the 167 employees or fewer, businesses in rural areas, businesses in
139 department CareerSource Florida, Inc.; conducting evaluation and 168 distressed inner-city areas, businesses in a qualified targeted
140 research on workforce development activities; and providing 169 industry, businesses whose grant proposals represent a
141 technical and capacity building assistance to local workforce 170 significant upgrade in employee skills, or businesses whose
142 development areas at the direction of the state board 171 grant proposals represent a significant layoff avoidance
143 CareerSource Florida, Inc. Notwithstanding s. 445.004, such 172 strategy.
144 administrative costs may not exceed 25 percent of these funds. 173 c. All costs reimbursed by the program must be preapproved
145 An amount not to exceed 75 percent of these funds shall be 174 by CareerSource Florida, Inc., or the grant administrator. The
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175 program may not reimburse businesses for trainee wages, the 204 4. At least 50 percent of Rapid Response funding shall be
176 purchase of capital equipment, or the purchase of any item or 205 dedicated to Intensive Services Accounts and Individual Training
177 service that may possibly be used outside the training project. 206 Accounts for dislocated workers and incumbent workers who are at
178 A business approved for a grant may be reimbursed for 207 risk of dislocation. The department CareerSource Florida, Inc.,
179 preapproved, direct, training-related costs including tuition, 208 shall also maintain an Emergency Preparedness Fund from Rapid
180 fees, books and training materials, and overhead or indirect 209 Response funds, which will immediately issue Intensive Service
181 costs not to exceed 5 percent of the grant amount. 210 Accounts, Individual Training Accounts, and other federally
182 d. A business that is selected to receive grant funding 211 authorized assistance to eligible victims of natural or other
183 must provide a matching contribution to the training project, 212 disasters. At the direction of the Governor, these Rapid
184 including, but not limited to, wages paid to trainees or the 213 Response funds shall be released to local workforce development
185 purchase of capital equipment used in the training project; must 214 boards for immediate use after events that qualify under federal
186 sign an agreement with CareerSource Florida, Inc., or the grant 215 law. Funding shall also be dedicated to maintain a unit at the
187 administrator to complete the training project as proposed in 216 state level to respond to Rapid Response emergencies and to work
188 the application; must keep accurate records of the project’s 217 with state emergency management officials and local workforce
189 implementation process; and must submit monthly or quarterly 218 development boards. All Rapid Response funds must be expended
190 reimbursement requests with required documentation. 219 based on a plan developed by the state board in consultation
191 e. All Incumbent Worker Training Program grant projects 220 with the department CareerSource Florida, Inc., and approved by
192 shall be performance-based with specific measurable performance 221 the Governor.
193 outcomes, including completion of the training project and job 222 (b) The administrative entity for Title I, Workforce
194 retention. CareerSource Florida, Inc., or the grant 223 Innovation and Opportunity Act funds, and Rapid Response
195 administrator shall withhold the final payment to the grantee 224 activities is the department of Economic Opportunity, which
196 until a final grant report is submitted and all performance 225 shall provide direction to local workforce development boards
197 criteria specified in the grant contract have been achieved. 226 regarding Title I programs and Rapid Response activities
198 f. The state board CareerSource Florida, Inc., may 227 pursuant to the direction of CareerSource Florida, Inc.
199 establish guidelines necessary to implement the Incumbent Worker 228 (4) FEDERAL REQUIREMENTS, EXCEPTIONS AND REQUIRED
200 Training Program. 229 MODIFICATIONS.—
201 g. No more than 10 percent of the Incumbent Worker Training 230 (b) The state board, in consultation with the department
202 Program’s total appropriation may be used for overhead or 231 CareerSource Florida, Inc., may make modifications to the
203 indirect purposes. 232 state’s plan, policies, and procedures to comply with federally
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233 mandated requirements that in its judgment must be complied with 262 organized, and operated in compliance with chapter 617 and shall
234 to maintain funding provided pursuant to Pub. L. No. 113-128. 263 operate at the direction of the state board. CareerSource
235 The state board shall provide written notice to the Governor, 264 Florida, Inc., is not a unit or entity of state government and
236 the President of the Senate, and the Speaker of the House of 265 is exempt from chapters 120 and 287. CareerSource Florida, Inc.,
237 Representatives within 30 days after any such changes or 266 shall apply the procurement and expenditure procedures required
238 modifications. 267 by federal law for the expenditure of federal funds.
239 (c) The state board CareerSource Florida, Inc., shall enter 268 CareerSource Florida, Inc., shall be administratively housed
240 into a memorandum of understanding with the Florida Department 269 within the department and shall operate under agreement with the
241 of Education to ensure that federally mandated requirements of 270 department of Economic Opportunity; however, CareerSource
242 Pub. L. No. 113-128 are met and are in compliance with the state 271 Florida, Inc., is not subject to control, supervision, or
243 plan for workforce development. 272 direction by the department in any manner. The Legislature finds
244 (5) LONG-TERM CONSOLIDATION OF WORKFORCE DEVELOPMENT.—The 273 that public policy dictates that CareerSource Florida, Inc.,
245 state board CareerSource Florida, Inc., may recommend workforce- 274 operate in the most open and accessible manner consistent with
246 related divisions, bureaus, units, programs, duties, 275 its public purpose. To this end, the Legislature specifically
247 commissions, boards, and councils for elimination, 276 declares that CareerSource Florida, Inc., its board, councils,
248 consolidation, or privatization. 277 and any advisory committees or similar groups created by
249 (6) AUTHORITY TO HIRE DIRECTOR AND STAFF.—The state board 278 CareerSource Florida, Inc., are subject to the provisions of
250 may hire a director and staff to assist in carrying out the 279 chapter 119 relating to public records, and those provisions of
251 functions of the Workforce Innovation and Opportunity Act and in 280 chapter 286 relating to public meetings.
252 using funds made available through the act. The state board 281 (2) CareerSource Florida, Inc., provides administrative
253 shall authorize the director and staff to work with the 282 support for the state board, is the principal workforce policy
254 department in carrying out the functions of the Workforce 283 organization for the state. The purpose of the state board
255 Innovation and Opportunity Act. 284 CareerSource Florida, Inc., is to design and implement
256 Section 3. Section 445.004, Florida Statutes, is amended to 285 strategies that help Floridians enter, remain in, and advance in
257 read: 286 the workplace, so that they may become more highly skilled and
258 445.004 CareerSource Florida, Inc., and the state board; 287 successful, which benefits these Floridians, Florida businesses,
259 creation; purpose; membership; duties and powers.— 288 and the entire state, and fosters the development of the state’s
260 (1) CareerSource Florida, Inc., is created as a not-for- 289 business climate. CareerSource Florida, Inc., shall, consistent
261 profit corporation, which shall be registered, incorporated, 290 with its agreement with the department, implement the policy
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291 directives of the state board and administer state workforce 320 majority of the membership of the board. Private sector
292 development programs as authorized by law. 321 representatives shall be appointed from nominations received by
293 (3)(a) CareerSource Florida, Inc., shall be governed by a 322 the Governor, including, but not limited to, those nominations
294 board of directors, whose membership and appointment must be 323 made by the President of the Senate and the Speaker of the House
295 consistent with Pub. L. No. 113-128, Title I, s. 101(b). Members 324 of Representatives. Private sector appointments to the board
296 of the state board described in Pub. L. No. 113-128, Title I, s. 325 must be representative of the business community of this state;
297 101(b)(1)(C)(iii)(I)(aa) shall be nonvoting members. The number 326 no fewer than one-half of the appointments must be
298 of directors shall be determined by the Governor, who shall 327 representative of small businesses, and at least five members
299 consider the importance of minority, gender, and geographic 328 must have economic development experience. Members appointed by
300 representation in making appointments to the board. When the 329 the Governor serve at the pleasure of the Governor and are
301 Governor is in attendance, he or she shall preside at all 330 eligible for reappointment.
302 meetings of the state board of directors. 331 (d) The board must include the vice chairperson of the
303 (b) The state board of directors of CareerSource Florida, 332 board of directors of Enterprise Florida, Inc., and one member
304 Inc., shall be chaired by a board member designated by the 333 representing each of the Workforce Innovation and Opportunity
305 Governor pursuant to Pub. L. No. 113-128. A member may not serve 334 Act partners, including the Division of Career and Adult
306 more than two terms. 335 Education, and other entities representing programs identified
307 (c) Members appointed by the Governor may serve no more 336 in the Workforce Innovation and Opportunity Act, as determined
308 than two terms and must be appointed for 3-year terms. However, 337 necessary.
309 in order to establish staggered terms for board members, the 338 (e) A member of the state board of directors of
310 Governor shall appoint or reappoint one-third of the board 339 CareerSource Florida, Inc., may be removed by the Governor for
311 members for 1-year terms, one-third of the board members for 2- 340 cause. Absence from three consecutive meetings results in
312 year terms, and one-third of the board members for 3-year terms 341 automatic removal. The chair of the state board CareerSource
313 beginning July 1, 2016. Subsequent appointments or 342 Florida, Inc., shall notify the Governor of such absences.
314 reappointments shall be for 3-year terms, except that a member 343 (f) Representatives of businesses appointed to the state
315 appointed to fill a vacancy on the board shall be appointed to 344 board of directors may not include providers of workforce
316 serve only the remainder of the term of the member whom he or 345 services.
317 she is replacing, and may be appointed for a subsequent 3-year 346 (g) The state board serves as the board of directors of
318 term. Private sector representatives of businesses, appointed by 347 CareerSource Florida, Inc. The state board shall hire an
319 the Governor pursuant to Pub. L. No. 113-128, shall constitute a 348 executive director. The executive director is the president, the
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349 chief executive officer, and an employee of CareerSource 378 but these members, the president, and the employees of
350 Florida, Inc. 379 CareerSource Florida, Inc., may be reimbursed for all
351 (4)(a) The president of CareerSource Florida, Inc., shall 380 reasonable, necessary, and actual expenses pursuant to s.
352 be hired by the board of directors of CareerSource Florida, 381 112.061.
353 Inc., and shall serve at the pleasure of the Governor in the 382 (g) The state board shall of directors of CareerSource
354 capacity of an executive director and secretary of CareerSource 383 Florida, Inc., may establish an executive committee consisting
355 Florida, Inc. 384 of the chair and at least six additional board members selected
356 (b) The state board of directors of CareerSource Florida, 385 by the chair, one of whom must be a representative of organized
357 Inc., shall meet at least quarterly and at other times upon the 386 labor. The executive committee and the president have such
358 call of its chair. The board and its committees, subcommittees, 387 authority as the board delegates to them, except that the state
359 or other subdivisions may use any method of telecommunications 388 board of directors may not delegate to the executive committee
360 to conduct meetings, including establishing a quorum through 389 authority to take action that requires approval by a majority of
361 telecommunications, if the public is given proper notice of the 390 the entire state board of directors.
362 telecommunications meeting and is given reasonable access to 391 (h) The chair may appoint committees to fulfill the board’s
363 observe and, if appropriate, participate. 392 responsibilities, to comply with federal requirements, or to
364 (c) A majority of the total current membership of the state 393 obtain technical assistance, and must incorporate members of
365 board of directors of CareerSource Florida, Inc., constitutes a 394 local workforce development boards into its structure.
366 quorum. 395 (i) Each member of the state board of directors who is not
367 (d) A majority of those voting is required to organize and 396 otherwise required to file a financial disclosure pursuant to s.
368 conduct the business of the board, except that a majority of the 397 8, Art. II of the State Constitution or s. 112.3144 must file
369 entire board of directors is required to adopt or amend the 398 disclosure of financial interests pursuant to s. 112.3145.
370 bylaws. 399 (5) The state board CareerSource Florida, Inc., shall have
371 (e) Except as delegated or authorized by the state board of 400 all the powers and authority not explicitly prohibited by
372 directors of CareerSource Florida, Inc., individual members have 401 statute which are necessary or convenient to carry out and
373 no authority to control or direct the operations of CareerSource 402 effectuate its purposes as determined by statute, Pub. L. No.
374 Florida, Inc., or the actions of its officers and employees, 403 113-128, and the Governor, as well as its functions, duties, and
375 including the president. 404 responsibilities, including, but not limited to, the following:
376 (f) Members of the state board of directors of CareerSource 405 (a) Serving as the state’s Workforce Development Board
377 Florida, Inc., and its committees serve without compensation, 406 pursuant to Pub. L. No. 113-128. Unless otherwise required by
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407 federal law, at least 90 percent of workforce development 436 2011-2032; the Food Security Act of 1988, Pub. L. No. 99-198;
408 funding must go toward direct customer service. 437 and the Hunger Prevention Act, Pub. L. No. 100-435.
409 (b) Providing oversight and policy direction to ensure that 438 9. The Quick-Response Training Program, provided under ss.
410 the following programs are administered by the department 439 288.046-288.047. Matching funds and in-kind contributions that
411 consistent in compliance with approved plans and under contract 440 are provided by clients of the Quick-Response Training Program
412 with CareerSource Florida, Inc.: 441 shall count toward the requirements of s. 288.904, pertaining to
413 1. Programs authorized under Title I of the Workforce 442 the return on investment from activities of Enterprise Florida,
414 Innovation and Opportunity Act, Pub. L. No. 113-128, with the 443 Inc.
415 exception of programs funded directly by the United States 444 10. The Work Opportunity Tax Credit, provided under the Tax
416 Department of Labor under Title I, s. 167. 445 and Trade Relief Extension Act of 1998, Pub. L. No. 105-277, and
417 2. Programs authorized under the Wagner-Peyser Act of 1933, 446 the Taxpayer Relief Act of 1997, Pub. L. No. 105-34.
418 as amended, 29 U.S.C. ss. 49 et seq. 447 11. Offender placement services, provided under ss.
419 3. Activities authorized under Title II of the Trade Act of 448 944.707-944.708.
420 2002, as amended, 19 U.S.C. ss. 2272 et seq., and the Trade 449 (c) The department may adopt rules necessary to administer
421 Adjustment Assistance Program. 450 this chapter which relate to implementing and administering the
422 4. Activities authorized under 38 U.S.C. chapter 41, 451 programs listed in paragraph (b) as well as rules related to
423 including job counseling, training, and placement for veterans. 452 eligible training providers and auditing and monitoring
424 5. Employment and training activities carried out under 453 subrecipients of the workforce system grant funds. The
425 funds awarded to this state by the United States Department of 454 department may consult with the state board to issue technical
426 Housing and Urban Development. 455 assistance letters on the operation of federal programs and the
427 6. Welfare transition services funded by the Temporary 456 expenditure of federal funds by the state board or any local
428 Assistance for Needy Families Program, created under the 457 workforce development board. A technical assistance letter must
429 Personal Responsibility and Work Opportunity Reconciliation Act 458 be in writing, must be posted on the department’s website, and
430 of 1996, as amended, Pub. L. No. 104-193, and Title IV, s. 403, 459 remains in effect until superseded or terminated. A technical
431 of the Social Security Act, as amended. 460 assistance letter is not a declaratory statement issued pursuant
432 7. The Florida Bonding Program, provided under Pub. L. No. 461 to s. 120.565, an order issued pursuant to s. 120.569, or a rule
433 97-300, s. 164(a)(1). 462 of general applicability under s. 120.54. Section 120.53 does
434 8. The Food Assistance Employment and Training Program, 463 not apply to technical assistance letters.
435 provided under the Food and Nutrition Act of 2008, 7 U.S.C. ss. 464 (d) Contracting with public and private entities as
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465 necessary to further the directives of this section. All 494 may also authorize expenditures for promotional items, such as
466 contracts executed by CareerSource Florida, Inc., must include 495 t-shirts, hats, or pens printed with messages promoting the
467 specific performance expectations and deliverables. All 496 state’s workforce system to employers, job seekers, and program
468 CareerSource Florida, Inc., contracts, including those 497 participants. However, such expenditures are subject to federal
469 solicited, managed, or paid by the department pursuant to s. 498 regulations applicable to the expenditure of federal funds.
470 20.60(5)(c) are exempt from s. 112.061, but shall be governed by 499 (g) Establishing a dispute resolution process for all
471 subsection (1). 500 memoranda of understanding or other contracts or agreements
472 (e) Notifying the Governor and the department of statewide 501 entered into between the department and local workforce
473 or local workforce development and training needs that may 502 development boards.
474 require policy changes or an update to the state plan required 503 (h) Archiving records with the Bureau of Archives and
475 under s. 445.003, and notifying the Governor, the President of 504 Records Management of the Division of Library and Information
476 the Senate, and the Speaker of the House of Representatives of 505 Services of the Department of State.
477 noncompliance by the department or other agencies or obstruction 506 (6) The state board CareerSource Florida, Inc., may take
478 of the state board’s efforts by such agencies. Upon such 507 action that it deems necessary to achieve the purposes of this
479 notification, the Executive Office of the Governor shall assist 508 section, including, but not limited to:
480 agencies to bring them into compliance with board objectives. 509 (a) Creating a state employment, education, and training
481 (f) Ensuring that the state does not waste valuable 510 policy that ensures that programs to prepare workers are
482 training resources. The state board’s policy shall be board 511 responsive to present and future business and industry needs and
483 shall direct that all resources, including equipment purchased 512 complement the initiatives of Enterprise Florida, Inc.
484 for training Workforce Innovation and Opportunity Act clients, 513 (b) Establishing policy direction for a funding system that
485 be available for use at all times by eligible populations as 514 provides incentives to improve the outcomes of career education,
486 first priority users. At times when eligible populations are not 515 registered apprenticeship, and work-based learning programs and
487 available, such resources shall be used for any other state- 516 that focuses resources on occupations related to new or emerging
488 authorized education and training purpose. The state board 517 industries that add greatly to the value of the state’s economy.
489 CareerSource Florida, Inc., may authorize expenditures to award 518 (c) Establishing a comprehensive policy related to the
490 suitable framed certificates, pins, or other tokens of 519 education and training of target populations such as those who
491 recognition for performance by a local workforce development 520 have disabilities, are economically disadvantaged, receive
492 board, its committees and subdivisions, and other units of the 521 public assistance, are not proficient in English, or are
493 workforce system. The state board CareerSource Florida, Inc., 522 dislocated workers. This approach should ensure the effective
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523 use of federal, state, local, and private resources in reducing 552 (b) The operations and accomplishments of the board,
524 the need for public assistance. 553 including the programs or entities specified in subsection (6).
525 (d) Designating Institutes of Applied Technology composed 554 (8) Pursuant to his or her own authority or at the
526 of public and private postsecondary institutions working 555 direction of the Legislative Auditing Committee, the Auditor
527 together with business and industry to ensure that career 556 General may conduct an audit of the state board and CareerSource
528 education programs use the most advanced technology and 557 Florida, Inc., or the programs or entities created by the state
529 instructional methods available and respond to the changing 558 board CareerSource Florida, Inc. The Office of Program Policy
530 needs of business and industry. 559 Analysis and Government Accountability, pursuant to its
531 (e) Providing policy direction for a system to project and 560 authority or at the direction of the Legislative Auditing
532 evaluate labor market supply and demand using the results of the 561 Committee, may review the systems and controls related to
533 Workforce Estimating Conference created in s. 216.136 and the 562 performance outcomes and quality of services of CareerSource
534 career education performance standards identified under s. 563 Florida, Inc.
535 1008.43. 564 (9) The state board CareerSource Florida, Inc., in
536 (f) Reviewing the performance of public programs that are 565 collaboration with the local workforce development boards and
537 responsible for economic development, education, employment, and 566 appropriate state agencies and local public and private service
538 training. The review must include an analysis of the return on 567 providers, shall establish uniform performance accountability
539 investment of these programs. 568 measures that apply across the core programs to gauge the
540 (g) Expanding the occupations identified by the Workforce 569 performance of the state and local workforce development boards
541 Estimating Conference to meet needs created by local emergencies 570 in achieving the workforce development strategy.
542 or plant closings or to capture occupations within emerging 571 (a) The performance accountability measures for the core
543 industries. 572 programs consist of the primary indicators of performance, any
544 (7) By December 1 of each year, the state board 573 additional indicators of performance, and a state-adjusted level
545 CareerSource Florida, Inc., shall submit to the Governor, the 574 of performance for each indicator pursuant to Pub. L. No. 113-
546 President of the Senate, the Speaker of the House of 575 128, Title I, s. 116(b).
547 Representatives, the Senate Minority Leader, and the House 576 (b) The performance accountability measures for each local
548 Minority Leader a complete and detailed annual report setting 577 area consist of the primary indicators of performance, any
549 forth: 578 additional indicators of performance, and a local level of
550 (a) All audits, including any audit conducted under 579 performance for each indicator pursuant to Pub. L. No. 113-128.
551 subsection (8). 580 The local level of performance is determined by the local board,
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581 the chief elected official, and the Governor pursuant to Pub. L. 610 to local workforce development boards that have a membership
582 No. 113-128, Title I, s. 116(c). 611 consistent with the requirements of federal and state law and
583 (c) Performance accountability measures shall be used to 612 have developed a plan consistent with the state’s workforce
584 generate performance reports pursuant to Pub. L. No. 113-128, 613 development strategy. The plan must specify methods for
585 Title I, s. 116(d). 614 allocating the resources and programs in a manner that
586 (d) The performance accountability measures of success that 615 eliminates unwarranted duplication, minimizes administrative
587 are adopted by the state board CareerSource Florida, Inc., or 616 costs, meets the existing job market demands and the job market
588 the local workforce development boards must be developed in a 617 demands resulting from successful economic development
589 manner that provides for an equitable comparison of the relative 618 activities, ensures access to quality workforce development
590 success or failure of any service provider in terms of positive 619 services for all Floridians, allows for pro rata or partial
591 outcomes. 620 distribution of benefits and services, prohibits the creation of
592 (10) The workforce development strategy for the state shall 621 a waiting list or other indication of an unserved population,
593 be designed by the state board, in consultation with the 622 serves as many individuals as possible within available
594 department, and approved by the Governor CareerSource Florida, 623 resources, and maximizes successful outcomes. The state board As
595 Inc. The strategy must include efforts that enlist business, 624 part of the charter process, CareerSource Florida, Inc., shall
596 education, and community support for students to achieve long- 625 establish incentives for effective coordination of federal and
597 term career goals, ensuring that young people have the academic 626 state programs, outline rewards for successful job placements,
598 and occupational skills required to succeed in the workplace. 627 and institute collaborative approaches among local service
599 The strategy must also assist employers in upgrading or updating 628 providers. Local decisionmaking and control shall be important
600 the skills of their employees and assisting workers to acquire 629 components for inclusion in this charter application.
601 the education or training needed to secure a better job with 630 (12) CareerSource Florida, Inc., under the direction of the
602 better wages. The strategy must assist the state’s efforts to 631 state board, shall enter into agreement with Space Florida and
603 attract and expand job-creating businesses offering high-paying, 632 collaborate with vocational institutes, community colleges,
604 high-demand occupations. 633 colleges, and universities in this state to develop a workforce
605 (11) The workforce development system must encourage use a 634 development strategy to implement the workforce provisions of s.
606 charter-process approach aimed at encouraging local design and 635 331.3051.
607 control of service delivery and targeted activities. The state 636 Section 4. Section 445.006, Florida Statutes, is amended to
608 board, in consultation with the department CareerSource Florida, 637 read:
609 Inc., shall be responsible for ensuring that granting charters 638 445.006 State plan for workforce development.—
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639 (1) STATE PLAN.—The state board CareerSource Florida, Inc., 668 placements for specific subsets of the welfare transition
640 in conjunction with state and local partners in the workforce 669 caseload.
641 system, shall develop a state plan that produces an educated and 670 (3) OPERATIONAL PLANNING ELEMENTS.—The state board
642 skilled workforce. The state plan must consist of strategic and 671 CareerSource Florida, Inc., in conjunction with state and local
643 operational planning elements. The state plan shall be submitted 672 partners in the workforce system, shall develop operational
644 by the Governor to the United States Department of Labor 673 planning elements, pursuant to Pub. L. No. 113-128, Title I, s.
645 pursuant to the requirements of Pub. L. No. 113-128. 674 102, for the state plan.
646 (2) STRATEGIC PLANNING ELEMENTS.—The state board 675 Section 5. Subsection (1), paragraph (b) of subsection (2),
647 CareerSource Florida, Inc., in conjunction with state and local 676 and subsections (3) through (7) and (9) through (13) of section
648 partners in the workforce system, shall develop strategic 677 445.007, Florida Statutes, are amended, and paragraph (c) is
649 planning elements, pursuant to Pub. L. No. 113-128, Title I, s. 678 added to subsection (2) of that section, to read:
650 102, for the state plan. 679 445.007 Local workforce development boards.—
651 (a) The strategic planning elements of the state plan must 680 (1) One local workforce development board shall be
652 include, but need not be limited to, strategies for: 681 appointed in each designated service delivery area and shall
653 1. Fulfilling the workforce system goals and strategies 682 serve as the local workforce development board pursuant to Pub.
654 prescribed in s. 445.004; 683 L. No. 113-128. The membership of the local board must be
655 2. Aggregating, integrating, and leveraging workforce 684 consistent with Pub. L. No. 113-128, Title I, s. 107(b). If a
656 system resources; 685 public education or training provider is represented on the
657 3. Coordinating the activities of federal, state, and local 686 local board, a representative of a private education provider
658 workforce system partners; 687 must also be appointed to the local board. The state board
659 4. Addressing the workforce needs of small businesses; and 688 CareerSource Florida, Inc., may waive this requirement if
660 5. Fostering the participation of rural communities and 689 requested by a local workforce development board if it is
661 distressed urban cores in the workforce system. 690 demonstrated that such representatives do not exist in the
662 (b) The strategic planning elements must include criteria 691 region. The importance of minority and gender representation
663 for allocating workforce resources to local workforce 692 shall be considered when making appointments to the local board.
664 development boards. With respect to allocating funds to serve 693 The local board, its committees, subcommittees, and
665 customers of the welfare transition program, such criteria may 694 subdivisions, and other units of the workforce system, including
666 include weighting factors that indicate the relative degree of 695 units that may consist in whole or in part of local governmental
667 difficulty associated with securing and retaining employment 696 units, may use any method of telecommunications to conduct
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697 meetings, including establishing a quorum through 726 functions of the local board for cause. As used in this
698 telecommunications, provided that the public is given proper 727 paragraph, the term “cause” includes, but is not limited to,
699 notice of the telecommunications meeting and reasonable access 728 engaging in fraud or other criminal acts, incapacity, unfitness,
700 to observe and, when appropriate, participate. Local workforce 729 neglect of duty, official incompetence and irresponsibility,
701 development boards are subject to chapters 119 and 286 and s. 730 misfeasance, malfeasance, nonfeasance, or lack of performance.
702 24, Art. I of the State Constitution. If the local workforce 731 (c) The chief elected official for the local workforce
703 development board enters into a contract with an organization or 732 development board may remove a member of the local board, the
704 individual represented on the local board of directors, the 733 executive director of the local board, or the designated person
705 contract must be approved by a two-thirds vote of the local 734 responsible for the operational and administrative functions of
706 board, a quorum having been established, and the local board 735 the local board for cause.
707 member who could benefit financially from the transaction must 736 (3) The department of Economic Opportunity, under the
708 abstain from voting on the contract. A local board member must 737 direction of CareerSource Florida, Inc., shall assign staff to
709 disclose any such conflict in a manner that is consistent with 738 meet with each local workforce development board annually to
710 the procedures outlined in s. 112.3143. Each member of a local 739 review the local board’s performance and to certify that the
711 workforce development board who is not otherwise required to 740 local board is in compliance with applicable state and federal
712 file a full and public disclosure of financial interests 741 law.
713 pursuant to s. 8, Art. II of the State Constitution or s. 742 (4) In addition to the duties and functions specified by
714 112.3144 shall file a statement of financial interests pursuant 743 the state board CareerSource Florida, Inc., and by the
715 to s. 112.3145. The executive director or designated person 744 interlocal agreement approved by the local county or city
716 responsible for the operational and administrative functions of 745 governing bodies, the local workforce development board shall
717 the local workforce development board who is not otherwise 746 have the following responsibilities:
718 required to file a full and public disclosure of financial 747 (a) Develop, submit, ratify, or amend the local plan
719 interests pursuant to s. 8, Art. II of the State Constitution or 748 pursuant to Pub. L. No. 113-128, Title I, s. 108 and this act.
720 s. 112.3144 shall file a statement of financial interests 749 (b) Conclude agreements necessary to designate the fiscal
721 pursuant to s. 112.3145. 750 agent and administrative entity. A public or private entity,
722 (2) 751 including an entity established pursuant to s. 163.01, which
723 (b) The Governor may remove a member of the local board, 752 makes a majority of the appointments to a local workforce
724 the executive director of the local board, or the designated 753 development board may serve as the local board’s administrative
725 person responsible for the operational and administrative 754 entity if approved by the department CareerSource Florida, Inc.,
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755 based upon a showing that a fair and competitive process was 784 agreement of the chief elected official and the Governor as
756 used to select the administrative entity. 785 specified in 29 U.S.C. s. 2832(f)(2). The state board
757 (c) Complete assurances required for the charter process of 786 CareerSource Florida, Inc., shall establish procedures by which
758 CareerSource Florida, Inc., and Provide ongoing oversight 787 a local workforce development board may request permission to
759 related to administrative costs, duplicated services, career 788 operate under this section and the criteria under which such
760 counseling, economic development, equal access, compliance and 789 permission may be granted. The criteria shall include, but need
761 accountability, and performance outcomes. 790 not be limited to, a reduction in the cost of providing the
762 (d) Oversee the one-stop delivery system in its local area. 791 permitted services. Such permission shall be granted for a
763 (5) The department, in conjunction with the state board 792 period not to exceed 3 years for any single request submitted by
764 CareerSource Florida, Inc., shall implement a training program 793 the local workforce development board.
765 for the local workforce development boards to familiarize local 794 (7) Local workforce development boards shall adopt a
766 board members with the state’s workforce development goals and 795 committee structure consistent with applicable federal law and
767 strategies. 796 state policies established by the state board CareerSource
768 (6) The local workforce development board shall designate 797 Florida, Inc.
769 all local service providers and may not transfer this authority 798 (9) For purposes of procurement, local workforce
770 to a third party. Consistent with the intent of the Workforce 799 development boards and their administrative entities are not
771 Innovation and Opportunity Act, local workforce development 800 state agencies and are exempt from chapters 120 and 287. The
772 boards should provide the greatest possible choice of training 801 local workforce development boards shall apply the procurement
773 providers to those who qualify for training services. A local 802 and expenditure procedures required by federal law and policies
774 workforce development board may not restrict the choice of 803 of the department of Economic Opportunity and the state board
775 training providers based upon cost, location, or historical 804 CareerSource Florida, Inc., for the expenditure of federal,
776 training arrangements. However, a local board may restrict the 805 state, and nonpass-through funds. The making or approval of
777 amount of training resources available to any one client. Such 806 smaller, multiple payments for a single purchase with the intent
778 restrictions may vary based upon the cost of training in the 807 to avoid or evade the monetary thresholds and procedures
779 client’s chosen occupational area. The local workforce 808 established by federal law and policies of the department of
780 development board may be designated as a one-stop operator and 809 Economic Opportunity and the state board CareerSource Florida,
781 direct provider of intake, assessment, eligibility 810 Inc., is grounds for removal for cause. Local workforce
782 determinations, or other direct provider services except 811 development boards, their administrative entities, committees,
783 training services. Such designation may occur only with the 812 and subcommittees, and other workforce units may authorize
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813 expenditures to award suitable framed certificates, pins, or 842 monitoring by the department of Economic Opportunity, the
814 other tokens of recognition for performance by units of the 843 administrative entity for CareerSource Florida, Inc. Local
815 workforce system. Local workforce development boards; their 844 boards are prohibited from expending state or federal funds for
816 administrative entities, committees, and subcommittees; and 845 entertainment costs and recreational activities for local board
817 other workforce units may authorize expenditures for promotional 846 members and employees as these terms are defined by 2 C.F.R.
818 items, such as t-shirts, hats, or pens printed with messages 847 part 200 230.
819 promoting Florida’s workforce system to employers, job seekers, 848 (11) To increase transparency and accountability, a local
820 and program participants. However, such expenditures are subject 849 workforce development board must comply with the requirements of
821 to federal regulations applicable to the expenditure of federal 850 this section before contracting with a member of the local board
822 funds. All contracts executed by local workforce development 851 or a relative, as defined in s. 112.3143(1)(c), of a local board
823 boards must include specific performance expectations and 852 member or of an employee of the local board. Such contracts may
824 deliverables. 853 not be executed before or without the prior approval of the
825 (10) State and federal funds provided to the local 854 department CareerSource Florida, Inc. Such contracts, as well as
826 workforce development boards may not be used directly or 855 documentation demonstrating adherence to this section as
827 indirectly to pay for meals, food, or beverages for board 856 specified by the department CareerSource Florida, Inc., must be
828 members, staff, or employees of local workforce development 857 submitted to the department of Economic Opportunity for review
829 boards, the state board CareerSource Florida, Inc., or the 858 and approval recommendation according to criteria to be
830 department of Economic Opportunity except as expressly 859 determined by CareerSource Florida, Inc. Such a contract must be
831 authorized by state law. Preapproved, reasonable, and necessary 860 approved by a two-thirds vote of the local board, a quorum
832 per diem allowances and travel expenses may be reimbursed. Such 861 having been established; all conflicts of interest must be
833 reimbursement shall be at the standard travel reimbursement 862 disclosed before the vote; and any member who may benefit from
834 rates established in s. 112.061 and shall be in compliance with 863 the contract, or whose relative may benefit from the contract,
835 all applicable federal and state requirements. The department 864 must abstain from the vote. A contract under $25,000 between a
836 shall provide fiscal and programmatic guidance CareerSource 865 local workforce development board and a member of that board or
837 Florida, Inc., shall develop a statewide fiscal policy 866 between a relative, as defined in s. 112.3143(1)(c), of a local
838 applicable to the state board, CareerSource Florida, Inc., and 867 board member or of an employee of the local board is not
839 all local workforce development boards, to hold both the state 868 required to have the prior approval of the department
840 and local workforce development boards strictly accountable for 869 CareerSource Florida, Inc., but must be approved by a two-thirds
841 adherence to the policy and subject to regular and periodic 870 vote of the local board, a quorum having been established, and
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871 must be reported to the department of Economic Opportunity and 900 in partnership with local communities and public employers.
872 the state board CareerSource Florida, Inc., within 30 days after 901 (4) GOVERNANCE.—
873 approval. If a contract cannot be approved by the department 902 (a) The pilot program shall be administered by the local
874 CareerSource Florida, Inc., a review of the decision to 903 workforce development board in consultation with the state board
875 disapprove the contract may be requested by the local workforce 904 CareerSource Florida, Inc.
876 development board or other parties to the disapproved contract. 905 (b) The local workforce development board shall report to
877 (12) Each local workforce development board shall develop a 906 the state board and the department CareerSource Florida, Inc.,
878 budget for the purpose of carrying out the duties of the local 907 the number of at-risk and disadvantaged children who enter the
879 board under this section, subject to the approval of the chief 908 program, the types of work activities they participate in, and
880 elected official. Each local workforce development board shall 909 the number of children who return to school, go on to
881 submit its annual budget for review to the department 910 postsecondary school, or enter the workforce full time at the
882 CareerSource Florida, Inc., no later than 2 weeks after the 911 end of the program. The state board CareerSource Florida, Inc.,
883 chair approves the budget. 912 shall report to the Legislature by November 1 of each year on
884 (13) By March 1, 2018, CareerSource Florida, Inc., shall 913 the performance of the program.
885 establish regional planning areas in accordance with Pub. L. No. 914 Section 7. Subsections (1) and (2) of section 445.008,
886 113-128, Title I, s. 106(a)(2). Local workforce development 915 Florida Statutes, are amended to read:
887 boards and chief elected officials within identified regional 916 445.008 Workforce Training Institute.—
888 planning areas shall prepare a regional workforce development 917 (1) The state board, through CareerSource Florida, Inc.,
889 plan as required under Pub. L. No. 113-128, Title I, s. 918 may create the Workforce Training Institute, which shall be a
890 106(c)(2). 919 comprehensive program of workforce training courses designed to
891 Section 6. Subsections (1) and (4) of section 445.0071, 920 meet the unique needs of, and shall include Internet-based
892 Florida Statutes, are amended to read: 921 training modules suitable for and made available to,
893 445.0071 Florida Youth Summer Jobs Pilot Program.— 922 professionals integral to the workforce system, including
894 (1) CREATION.—Contingent upon appropriations, there is 923 advisors and counselors in educational institutions.
895 created the Florida Youth Summer Jobs Pilot Program within 924 (2) The state board, through CareerSource Florida, Inc.,
896 workforce development district 22 served by the Broward 925 may enter into a contract for the provision of administrative
897 Workforce Development Board. The board shall, in consultation 926 support services for the institute and shall adopt policies for
898 with the state board CareerSource Florida, Inc., provide a 927 the administration and operation of the institute and establish
899 program offering at-risk and disadvantaged children summer jobs 928 admission fees in an amount which, in the aggregate, does not
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929 exceed the cost of the program. CareerSource Florida, Inc., may 958 the one-stop delivery system to services provided by that one-
930 accept donations or grants of any type for any function or 959 stop delivery system operator. A local workforce development
931 purpose of the institute. All donations and grants received by 960 board may retain its current one-stop career center operator
932 CareerSource Florida, Inc., must be reported to the state board 961 without further procurement action if the board has an
933 and the department. 962 established one-stop career center that has complied with
934 Section 8. Subsections (2), (3), and (4), paragraph (b) of 963 federal and state law.
935 subsection (6), subsection (7), paragraphs (a), (c), and (d) of 964 (c) The local workforce development board must enter into a
936 subsection (8), and subsection (9) of section 445.009, Florida 965 memorandum of understanding with each mandatory or optional
937 Statutes, are amended to read: 966 partner participating in the one-stop delivery system which
938 445.009 One-stop delivery system.— 967 details the partner’s required contribution to infrastructure
939 (2)(a) Subject to a process designed by the state board 968 costs, as required by Pub. L. No. 113-128, s. 121(h). If the
940 CareerSource Florida, Inc., and in compliance with Pub. L. No. 969 local workforce development board and the one-stop partner are
941 113-128, local workforce development boards shall designate one- 970 unable to come to an agreement regarding infrastructure costs by
942 stop delivery system operators. 971 July 1, 2017, the costs shall be allocated pursuant to a policy
943 (b) A local workforce development board may designate as 972 established by the Governor.
944 its one-stop delivery system operator any public or private 973 (3) Local workforce development boards shall enter into a
945 entity that is eligible to provide services under any state or 974 memorandum of understanding with the department of Economic
946 federal workforce program that is a mandatory or discretionary 975 Opportunity for the delivery of employment services authorized
947 partner in the local workforce development area’s one-stop 976 by the federal Wagner-Peyser Act. This memorandum of
948 delivery system if approved by the department CareerSource 977 understanding must be performance based.
949 Florida, Inc., upon a showing by the local workforce development 978 (a) Unless otherwise required by federal law, at least 90
950 board that a fair and competitive process was used in the 979 percent of the Wagner-Peyser funding must go into direct
951 selection. As a condition of authorizing a local workforce 980 customer service costs.
952 development board to designate such an entity as its one-stop 981 (b) Employment services must be provided through the one-
953 delivery system operator, the department CareerSource Florida, 982 stop delivery system, under the guidance of one-stop delivery
954 Inc., must require the local workforce development board to 983 system operators. One-stop delivery system operators shall have
955 demonstrate that safeguards are in place to ensure that the one- 984 overall authority for directing the staff of the workforce
956 stop delivery system operator will not exercise an unfair 985 system. Personnel matters shall remain under the ultimate
957 competitive advantage or unfairly refer or direct customers of 986 authority of the department. However, the one-stop delivery
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987 system operator shall submit to the department information 1016 state board CareerSource Florida, Inc., shall develop an
988 concerning the job performance of employees of the department 1017 implementation plan, including identification of initially
989 who deliver employment services. The department shall consider 1018 eligible training providers, transition guidelines, and criteria
990 any such information submitted by the one-stop delivery system 1019 for use of these accounts. Individual Training Accounts must be
991 operator in conducting performance appraisals of the employees. 1020 compatible with Individual Development Accounts for education
992 (c) The department shall retain fiscal responsibility and 1021 allowed in federal and state welfare reform statutes.
993 accountability for the administration of funds allocated to the 1022 (8)(a) Individual Training Accounts must be expended on
994 state under the Wagner-Peyser Act. An employee of the department 1023 programs that prepare people to enter high-wage occupations
995 who is providing services authorized under the Wagner-Peyser Act 1024 identified by the Workforce Estimating Conference created by s.
996 shall be paid using Wagner-Peyser Act funds. 1025 216.136, and on other programs recommended by the state board
997 (4) One-stop delivery system partners shall enter into a 1026 and approved by the department as approved by CareerSource
998 memorandum of understanding pursuant to Pub. L. No. 113-128, 1027 Florida, Inc.
999 Title I, s. 121, with the local workforce development board. 1028 (c) The department CareerSource Florida, Inc., shall
1000 Failure of a local partner to participate cannot unilaterally 1029 periodically review Individual Training Account pricing
1001 block the majority of partners from moving forward with their 1030 schedules developed by local workforce development boards and
1002 one-stop delivery system, and the state board, in conjunction 1031 present findings and recommendations for process improvement to
1003 with the department, may notify the Governor CareerSource 1032 the President of the Senate and the Speaker of the House of
1004 Florida, Inc., pursuant to s. 445.004(5)(e), may make 1033 Representatives.
1005 notification of a local partner that fails to participate. 1034 (d) To the maximum extent possible, training providers
1006 (6) 1035 shall use funding sources other than the funding provided under
1007 (b) To expand electronic capabilities, the state board and 1036 Pub. L. No. 113-128. The state board CareerSource Florida, Inc.,
1008 the department CareerSource Florida, Inc., working with local 1037 shall develop a system to encourage the leveraging of
1009 workforce development boards, shall develop a centralized help 1038 appropriated resources for the workforce system and shall report
1010 center to assist local workforce development boards in 1039 on such efforts as part of the required annual report.
1011 fulfilling core services, minimizing the need for fixed-site 1040 (9)(a) The state board CareerSource Florida, Inc., working
1012 one-stop delivery system centers. 1041 with the department, shall coordinate among the agencies a plan
1013 (7) Intensive services and training provided pursuant to 1042 for a One-Stop Electronic Network made up of one-stop delivery
1014 Pub. L. No. 113-128 shall be provided to individuals through 1043 system centers and other partner agencies that are operated by
1015 Intensive Service Accounts and Individual Training Accounts. The 1044 authorized public or private for-profit or not-for-profit
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1045 agents. The plan shall identify resources within existing 1074 legislative appropriation, automated information systems that
1046 revenues to establish and support this electronic network for 1075 are necessary for the efficient and effective operation and
1047 service delivery that includes Government Services Direct. If 1076 management of the workforce development system. These
1048 necessary, the plan shall identify additional funding needed to 1077 information systems shall include, but need not be limited to,
1049 achieve the provisions of this subsection. 1078 the following:
1050 (b) The network shall assure that a uniform method is used 1079 (a) An integrated management system for the one-stop
1051 to determine eligibility for and management of services provided 1080 service delivery system, which includes, at a minimum, common
1052 by agencies that conduct workforce development activities. The 1081 registration and intake, screening for needs and benefits, case
1053 Department of Management Services shall develop strategies to 1082 planning and tracking, training benefits management, service and
1054 allow access to the databases and information management systems 1083 training provider management, performance reporting, executive
1055 of the following systems in order to link information in those 1084 information and reporting, and customer-satisfaction tracking
1056 databases with the one-stop delivery system: 1085 and reporting.
1057 1. The Reemployment Assistance Program under chapter 443. 1086 1. The system should report current budgeting, expenditure,
1058 2. The public employment service described in s. 443.181. 1087 and performance information for assessing performance related to
1059 3. The public assistance information system used by the 1088 outcomes, service delivery, and financial administration for
1060 Department of Children and Families and the components related 1089 workforce programs pursuant to s. 445.004(5) and (9).
1061 to temporary cash assistance, food assistance, and Medicaid 1090 2. The information system should include auditable systems
1062 eligibility. 1091 and controls to ensure financial integrity and valid and
1063 4. The Student Financial Assistance System of the 1092 reliable performance information.
1064 Department of Education. 1093 3. The system should support service integration and case
1065 5. Enrollment in the public postsecondary education system. 1094 management by providing for case tracking for participants in
1066 6. Other information systems determined appropriate by the 1095 welfare transition programs.
1067 state board in consultation with the department CareerSource 1096 (b) An automated job-matching information system that is
1068 Florida, Inc. 1097 accessible to employers, job seekers, and other users via the
1069 Section 9. Section 445.011, Florida Statutes, is amended to 1098 Internet, and that includes, at a minimum:
1070 read: 1099 1. Skill match information, including skill gap analysis;
1071 445.011 Workforce information systems.— 1100 resume creation; job order creation; skill tests; job search by
1072 (1) The department, in consultation with the state board 1101 area, employer type, and employer name; and training provider
1073 CareerSource Florida, Inc., shall implement, subject to 1102 linkage;
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1103 2. Job market information based on surveys, including 1132 must include, but are not limited to, the following:
1104 local, state, regional, national, and international occupational 1133 (1) Each recipient of cash assistance who is determined
1105 and job availability information; and 1134 ineligible for cash assistance for a reason other than a work
1106 3. Service provider information, including education and 1135 activity sanction shall be contacted by the workforce system
1107 training providers, child care facilities and related 1136 case manager and provided information about the availability of
1108 information, health and social service agencies, and other 1137 transitional benefits and services. Such contact shall be
1109 providers of services that would be useful to job seekers. 1138 attempted prior to closure of the case management file.
1110 (2) The department In procuring workforce information 1139 (2) Each recipient of temporary cash assistance who is
1111 systems, CareerSource Florida, Inc., shall employ competitive 1140 determined ineligible for cash assistance due to noncompliance
1112 processes, including requests for proposals, competitive 1141 with the work activity requirements shall be contacted and
1113 negotiation, and other competitive processes to ensure that the 1142 provided information in accordance with s. 414.065(1).
1114 procurement results in the most cost-effective investment of 1143 (3) The department, in consultation with the board of
1115 state funds. 1144 directors of CareerSource Florida, Inc., shall develop
1116 (3) CareerSource Florida, Inc., may procure independent 1145 informational material, including posters and brochures, to
1117 verification and validation services associated with developing 1146 better inform families about the availability of transitional
1118 and implementing any workforce information system. 1147 benefits and services.
1119 (3)(4) The department CareerSource Florida, Inc., shall 1148 (4) The department CareerSource Florida, Inc., in
1120 coordinate development and implementation of workforce 1149 cooperation with the Department of Children and Families shall,
1121 information systems with the state chief information officer to 1150 to the extent permitted by federal law, develop procedures to
1122 ensure compatibility with the state’s information system 1151 maximize the utilization of transitional Medicaid by families
1123 strategy and enterprise architecture. 1152 who leave the temporary cash assistance program.
1124 Section 10. Section 445.028, Florida Statutes, is amended 1153 Section 11. Subsections (6), (8), and (13) of section
1125 to read: 1154 445.051, Florida Statutes, are amended to read:
1126 445.028 Transitional benefits and services.—In cooperation 1155 445.051 Individual development accounts.—
1127 with the department CareerSource Florida, Inc., the Department 1156 (6) The state board CareerSource Florida, Inc., shall
1128 of Children and Families shall develop procedures to ensure that 1157 establish procedures for local workforce development boards to
1129 families leaving the temporary cash assistance program receive 1158 include in their annual program and financial plan an
1130 transitional benefits and services that will assist the family 1159 application to offer an individual development account program
1131 in moving toward self-sufficiency. At a minimum, such procedures 1160 as part of their TANF allocation. These procedures must include,
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1161 but need not be limited to, administrative costs permitted for 1190 Statutes, is amended to read:
1162 the fiduciary organization and policies relative to identifying 1191 443.171 Department of Economic Opportunity and commission;
1163 the match ratio and limits on the deposits for which the match 1192 powers and duties; records and reports; proceedings; state-
1164 will be provided in the application process. The state board 1193 federal cooperation.—
1165 CareerSource Florida, Inc., shall establish policies and 1194 (1) POWERS AND DUTIES.—The Department of Economic
1166 procedures necessary to ensure that funds held in an individual 1195 Opportunity shall administer this chapter. The department may
1167 development account are not withdrawn except for one or more of 1196 employ persons, make expenditures, require reports, conduct
1168 the qualified purposes described in this section. 1197 investigations, and take other action necessary or suitable to
1169 (8) The state board CareerSource Florida, Inc., shall 1198 administer this chapter. The department shall annually submit
1170 establish procedures for controlling the withdrawal of funds for 1199 information to the state board, as defined in s. 445.002
1171 uses other than qualified purposes, including specifying 1200 CareerSource Florida, Inc., covering the administration and
1172 conditions under which an account must be closed. 1201 operation of this chapter during the preceding calendar year for
1173 (13) Pursuant to policy direction by the state board 1202 inclusion in the strategic plan under s. 445.006 and may make
1174 CareerSource Florida, Inc., the department of Economic 1203 recommendations for amendment to this chapter.
1175 Opportunity shall adopt such rules as are necessary to implement 1204 Section 14. This act shall take effect July 1, 2020.
1176 this act.
1177 Section 12. Paragraph (p) of subsection (3) of section
1178 11.45, Florida Statutes, is amended to read:
1179 11.45 Definitions; duties; authorities; reports; rules.—
1180 (3) AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.—The Auditor
1181 General may, pursuant to his or her own authority, or at the
1182 direction of the Legislative Auditing Committee, conduct audits
1183 or other engagements as determined appropriate by the Auditor
1184 General of:
1185 (p) CareerSource Florida, Inc.; the state board, as that
1186 term is defined in s. 445.002;, or the programs or entities
1187 created by the state board CareerSource Florida, Inc., created
1188 pursuant to s. 445.004.
1189 Section 13. Subsection (1) of section 443.171, Florida
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The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1310
INTRODUCER: Senator Mayfield
SUBJECT: Hunting and Fishing Sales Tax Holiday
DATE: January 17, 2020 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Reeve McKay CM Pre-meeting
2. FT
3. AP
I. Summary:
SB 1310 establishes a 1-day hunting and fishing sales tax holiday, on September 5, 2020, for
firearms, ammunition for firearms, camping tents, and fishing supplies.
The bill appropriates $237,000 in nonrecurring funds from the General Revenue Fund to the
Department of Revenue for the 2019-2020 fiscal year.
The bill takes effect upon becoming law.
II. Present Situation:
Florida Sales Tax
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal
property,1 admissions,2 transient rentals,3 and a limited number of services. Chapter 212, F.S.,
contains provisions authorizing the levy and collection of Florida’s sales and use tax, as well as
the exemptions and credits applicable to certain items or uses under specified circumstances.
Sales tax is added to the price of the taxable good or service and collected from the purchaser at
the time of sale.4 Sales tax receipts accounted for approximately 77 percent of the state’s General
Revenue in Fiscal Year 2018-2019.5
1
Section 212.05(1)(a)1.a, F.S.
2
Section 212.04(b), F.S.
3
Section 212.03(1)(a), F.S.
4
See s. 212.07(2), F.S.
5
Office of Economic and Demographic Research, Florida Tax Handbook, 16 (2019), available at
http://edr.state.fl.us/Content/revenues/reports/tax-handbook/taxhandbook2019.pdf (last visited Jan. 17, 2020).
BILL: SB 1310 Page 2
Section 212.055, F.S., authorizes counties to impose local discretionary sales surtaxes in addition
to the state sales tax. A surtax applies to “all transactions occurring in the county which
transactions are subject to the state tax imposed on sales, use, services, rentals, admissions, and
other transactions by [ch. 212, F.S.], and communications services as defined in ch. 202.”6 The
discretionary sales surtax is based on the tax rate imposed by the county where the taxable goods
or services are sold or delivered. Discretionary sales surtax rates currently levied vary by county
in a range of 0.5 to 2.5 percent.7
Hunting and Fishing in Florida
The Florida Fish and Wildlife Conservation Commission (FWC) estimates that recreational
hunting, fishing, and wildlife-viewing annually contribute over $10 billion to Florida’s
economy.8 Florida has one of the largest public-hunting systems in the country, and there are
approximately 242,000 hunters within the state. According to the FWC, over 2.3 million of the
3.6 million anglers fishing in Florida are residents of the state.9
III. Effect of Proposed Changes:
The bill establishes that the following items are exempt from the state sales tax and local
discretionary sales surtaxes on September 5, 2020:
Firearms, including rifles, shotguns, spearguns, crossbows, and bows but excluding
destructive devices as defined in s. 790.001(4), F.S.;
Ammunition for firearms;
Camping tents; and
Fishing supplies, including rods, reels, bait, and fishing tackle but excluding supplies used
for commercial fishing purposes.
The exemptions provided for in the bill do not apply to the following:
Sales within a theme park or entertainment complex, as defined in s. 509.013(9), F.S.;
Sales within a public lodging establishment, as defined in s. 509.013(4), F.S.; and
Sales within an airport, as defined in s. 330.27, F.S.
The bill appropriates, for the 2019-2020 fiscal year, $237,000 in nonrecurring funds from the
General Revenue Fund to the Department of Revenue (DOR) to administer the hunting and
fishing sales tax holiday.
The DOR is authorized to adopt emergency rules pursuant to ss. 120.536(1) and 120.54, F.S., for
the purpose of implementing the bill.
The bill takes effect upon becoming law.
6
Section 212.054(2)(a), F.S.
7
Supra note 5, at 225-226.
8
Florida Fish and Wildlife Conservation Commission, FWC Overview—Economics, available at
https://myfwc.com/about/overview/economics/ (last visited Jan. 17, 2020).
9
Florida Fish and Wildlife Conservation Commission, FWC Overview, available at https://myfwc.com/about/overview/ (last
visited Jan. 17, 2020).
BILL: SB 1310 Page 3
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, s. 18 of the Florida Constitution governs laws that require counties and
municipalities to spend funds, limit the ability of counties and municipalities to raise
revenue, or reduce the percentage of state tax shared with counties and municipalities.
Subsection (b) of s. 18, Art. VII of the Florida Constitution provides that except upon
approval of each house of the Legislature by two-thirds vote of the membership, the
legislature may not enact, amend, or repeal any general law if the anticipated effect of
doing so would be to reduce the authority that municipalities or counties have to raise
revenue in the aggregate, as such authority existed on February 1, 1989. However, the
mandates requirements do not apply to laws having an insignificant impact,10, 11 which is
$2.1 million or less for Fiscal Year 2019-2020.12
SB 1310 limits the ability of counties to collect local discretionary sales surtaxes on
certain items on September 5, 2020. The Revenue Estimating Conference has not met
regarding the bill, so it is not yet known if the bill will have a significant fiscal impact on
local revenues.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
10
FLA. CONST. art. VII, s. 18(d).
11
An insignificant fiscal impact is the amount not greater than the average statewide population for the applicable fiscal year
multiplied by $0.10. See Florida Senate Committee on Community Affairs, Interim Report 2012-115: Insignificant Impact,
(September 2011), available at http://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-115ca.pdf (last
visited Jan. 17, 2020).
12
Based on the Demographic Estimating Conference’s population adopted on July 8, 2019, available at
http://edr.state.fl.us/Content/conferences/population/ConferenceResults.pdf (last visited Jan. 17, 2020).
BILL: SB 1310 Page 4
B. Private Sector Impact:
Persons purchasing exempt items during the sales tax holiday will realize savings.
C. Government Sector Impact:
The bill appropriates, for the 2019-2020 fiscal year, $237,000 in nonrecurring funds from
the General Revenue Fund to the DOR to administer the hunting and fishing sales tax
holiday. The DOR estimates that $60,000 in nonrecurring funds would be required to
mail a Tax Information Publication (TIP) to sales tax dealers notifying taxpayers of the
sales tax holiday.
The Revenue Estimating Conference has not yet met regarding the bill.
VI. Technical Deficiencies:
None.
VII. Related Issues:
The bill does not specify whether funds remaining unexpended from the $237,000 appropriation
will revert back to the General Revenue Fund after a certain date.
The bill appropriates funds to the DOR for Fiscal Year 2019-2020. However, the DOR has stated
that the cost of printing and mailing the TIP would be incurred in Fiscal Year 2020-2021.
VIII. Statutes Affected:
The bill creates two undesignated sections of chapter law.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1310
Ì876374DÎ876374
LEGISLATIVE ACTION
Senate . House
.
.
.
.
.
The Committee on Commerce and Tourism (Mayfield) recommended the
following:
1 Senate Amendment
2
3 Delete line 39
4 and insert:
5 (4) For the 2020-2021 fiscal year, the sum of $60,000 in
Page 1 of 1
1/17/2020 9:32:30 AM 577-02324-20
Florida Senate - 2020 SB 1310 Florida Senate - 2020 SB 1310
By Senator Mayfield
17-01604-20 20201310__ 17-01604-20 20201310__
1 A bill to be entitled 30 apply to sales within a theme park or entertainment complex as
2 An act relating to a hunting and fishing sales tax 31 defined in s. 509.013(9), Florida Statutes, within a public
3 holiday; providing an exemption from the sales and use 32 lodging establishment as defined in s. 509.013(4), Florida
4 tax for the retail sale of firearms, firearm 33 Statutes, or within an airport as defined in s. 330.27, Florida
5 ammunition, camping tents, and fishing supplies during 34 Statutes.
6 a specified timeframe; defining the terms “firearms” 35 (3) The Department of Revenue may, and all conditions are
7 and “fishing supplies”; specifying locations where the 36 deemed to be met to, adopt emergency rules pursuant to ss.
8 exemptions do not apply; authorizing the Department of 37 120.536(1) and 120.54, Florida Statutes, to implement this
9 Revenue to adopt emergency rules; providing an 38 section.
10 appropriation; providing an effective date. 39 (4) For the 2019-2020 fiscal year, the sum of $237,000 in
11 40 nonrecurring funds is appropriated from the General Revenue Fund
12 Be It Enacted by the Legislature of the State of Florida: 41 to the Department of Revenue for the purpose of implementing
13 42 this section.
14 Section 1. Hunting and fishing sales tax holiday.— 43 Section 2. This act shall take effect upon becoming a law.
15 (1) The tax levied under chapter 212, Florida Statutes, may
16 not be collected during the period from 12:01 a.m. through 11:59
17 p.m. on September 5, 2020, on the retail sale, as defined in s.
18 212.02(14), Florida Statutes, of:
19 (a) Firearms. As used in this subsection, the term
20 “firearms” means rifles, shotguns, spearguns, crossbows, and
21 bows, but does not include destructive devices as defined in s.
22 790.001(4), Florida Statutes.
23 (b) Ammunition for firearms.
24 (c) Camping tents.
25 (d) Fishing supplies. As used in this paragraph, the term
26 “fishing supplies” means rods, reels, bait, and fishing tackle,
27 but does not include supplies used for commercial fishing
28 purposes.
29 (2) The tax exemptions provided in this section do not
Page 1 of 2 Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
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The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: CS/SB 922
INTRODUCER: Senator Gruters
SUBJECT: Economic Development
DATE: January 22, 2020 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Reeve McKay CM Fav/CS
2. ATD
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 922 makes changes to the Qualified Target Industry Tax Refund Program. Specifically,
the bill provides that certain businesses that relocate to, or expand into, a county affected by
Hurricane Michael are eligible to receive an increased tax refund and authorizes certain
businesses located in a county affected by Hurricane Michael to apply for an economic recovery
extension. The bill removes the scheduled repeal date for the tax refund program.
The bill also exempts specified surf pools from supervision by the Department of Health if the
surf pool meets certain investment requirements and is permitted by a local government pursuant
to a special use permit process.
The bill takes effect July 1, 2020.
II. Present Situation:
Qualified Target Industry Tax Refund Program
The Qualified Target Industry (QTI) Tax Refund Program was created by the Legislature in 1994
to encourage the creation and retention of high-quality, high-wage jobs by providing state tax
refunds to eligible businesses creating jobs in certain target industries. Tax refunds awarded
through the program are determined by the number of jobs created, the average annual wages
BILL: CS/SB 922 Page 2
paid, and the location of the eligible business. Under current law, the tax refund program will
expire on June 30, 2020.1
In order to be eligible to receive a tax refund, a business must apply to be certified as a qualified
target industry business by the Department of Economic Opportunity (DEO). Businesses must be
engaged in one of Florida’s target industries as identified by DEO and Enterprise Florida, Inc.
(EFI).2 The current qualified targeted industries are aviation and aerospace; life sciences;
manufacturing; defense and homeland security; information technology; financial and
professional services; logistics and distribution; research and development; cleantech; and
corporate headquarters.3
Additionally, a business applying for certification as a qualified target industry business must
meet the following requirements:
A business’s project must create at least 10 new jobs, or create a net employment increase of
at least 10 percent in the case of an expansion of an existing business. The DEO is authorized
to waive this requirement for a business in a rural community or an enterprise zone;4
New jobs must pay an annual average wage of at least 115 percent of the average private
sector wage in a business’s area or the statewide private sector average wage. The DEO is
authorized to waive this requirement for a business in a brownfield area, a rural city, a rural
community, or an enterprise zone.5 Jobs created by a manufacturing project in any location
within the state may pay an annual average wage of at least 100 percent of the average
private sector wage in a business’s area;6 and
A business must receive a local funding match, paid by public or private sources, equal to 20
percent of the annual tax refund. The existence of local financial support must be confirmed
by a resolution adopted by the governing body of the county or municipality where the
business is located.7 A business located in a brownfield area, a rural city, or a rural
community is authorized to exercise an exemption from the local financial support
requirement, but the business would not be eligible for more than 80 percent of the total tax
refunds originally allowed.8
Under s. 288.106(3)(d), tax refunds may be claimed for one or more of the following taxes paid:
Sales and use tax;
Corporate income taxes;
Insurance premium taxes;
Intangible personal property taxes;
1
Section 288.106(9), F.S.
2
Section 288.106(2)(q), F.S. Every three years, beginning January 1, 2011, DEO must consult with EFI, economic
development organizations, the State University System, local governments, employee and employer organizations, market
analysts, and economists to review and revise the list of target industries. Target industries are determined according to
criteria found in statute.
3
Enterprise Florida, Inc., Qualified Targeted Industries for Incentives, available at https://www.enterpriseflorida.com/wp-
content/uploads/SI_Targeted_Industries.pdf (last visited Jan. 22, 2020).
4
Section 288.106(4)(b)2., F.S.
5
Section 288.106(4)(b)1.a., F.S.
6
Section 288.106(4)(b)1.b., F.S.
7
Section 288.106(4)(a)10., F.S.
8
Section 288.106(2)(k), F.S.
BILL: CS/SB 922 Page 3
Ad valorem taxes;
Certain state communication services taxes; and
Excise taxes on documents.
Qualified target industry businesses are eligible to receive a tax refund equal to $3,000 per newly
created job. If a business is located in a rural community or an enterprise zone, the refund
amount is increased to $6,000 per created job.9 Qualified target industry businesses may also be
eligible for the following additional tax refund payments under s. 288.106(3)(b):
$1,000 per created job if such jobs pay an average annual wage of at least 150 percent of the
average private sector wage in a business’s area;
$2,000 per created job if such jobs pay an average annual wage of at least 200 percent of the
average private sector wage in a business’s area;
$1,000 per created job if a business’s local financial support is equal to the state’s incentive
award; and
$2,000 per created jobs if a business falls within one of the designated high-impact sectors10
or increases exports of its goods through a seaport11 or airport in the state by at least 10
percent by value or tonnage in each of the years the business receives a tax refund.
A qualified target industry business cannot receive more than $1.5 million in tax refunds in any
fiscal year, or more than $2.5 million in any fiscal year if the business is located in an enterprise
zone.12 The total state share of tax refund payments may not exceed $35 million.13
In the event of negative economic conditions in a business’s industry, a named hurricane or
tropical storm, or specific acts of terrorism, a qualified target industry business may request an
economic recovery extension. The request must provide evidence detailing how the
aforementioned conditions have prevented a business from carrying out the terms of its tax
refund agreement. Upon approval, the DEO will renegotiate a business’s tax refund agreement.
Agreements may not be extended for more than 2 years, and a business that receives an
extension may not receive a tax refund for the period covered by the extension. Requests for an
economic recovery extension were permitted in lieu of any tax refund claim scheduled between
January 1, 2009, and July 1, 2012.14
In response to the Deepwater Horizon oil spill, the Legislature enacted a special incentive within
the QTI program to encourage business investment in the counties disproportionally affected by
9
Section 288.106(3)(b)1., F.S.
10
Pursuant to s. 288.108(6), F.S., EFI must consult with the DEO, economic development organizations, the State University
System, local governments, employee and employer organizations, market analysts, and economists every three years,
beginning January 1, 2011, to review the designated high-impact sectors. The sectors currently designated as high impact are
transportation equipment (including aviation and aerospace), information technology, life sciences, financial services,
corporate headquarters, and clean energy. See Office of Program Policy Analysis and Government Accountability, Florida
Economic Development Program Evaluations – Year 7, 17 (2019), available at
http://www.oppaga.state.fl.us/MonitorDocs/Reports/pdf/1916rpt.pdf (last visited Jan. 22, 2020).
11
Section 288.106(3)(b)4.b., F.S., limits seaports to the ports of Jacksonville, Tampa, Port Everglades, Miami, Port
Canaveral, Ft. Pierce, Palm Beach, Port Manatee, Port St. Joe, Panama City, St. Petersburg, Pensacola, Fernandina, and Key
West.
12
Section 288.106(3)(c), F.S.
13
Section 288.095(3)(a), F.S.
14
Section 288.106(5)(b)1., F.S.
BILL: CS/SB 922 Page 4
the disaster.15 DEO was authorized to waive any or all wage or local financial support
requirements between July 1, 2011, and June 30, 2014, for a business located in Bay, Escambia,
Franklin, Gulf, Okaloosa, Santa Rosa, Walton, or Wakulla County. During this period, a
qualified target industry business that relocated all or part of its business to one of such counties
from another state was also eligible for a tax refund of $6,000 per job created.16
To date, 1,360 businesses have been approved to participate in the QTI program and over $260
million has been awarded in tax refunds. According to the DEO, the 321 businesses actively
participating in the program in the 2018-2019 fiscal year created 7,462 jobs in total and exceeded
the number of total new jobs expected to be created by 3,184.17
After June 30, 2020, a business may not become certified as a qualified target industry business.
Tax refund agreements already in existence before then will remain in effect.
Hurricane Michael
Hurricane Michael made landfall in the Florida Panhandle as a Category 5 Hurricane on October
10, 2018. The storm, the fourth most powerful hurricane to hit the country, remained at category
3 strength as it traveled into southwest Georgia. Storm surge and 160 mph winds caused
destruction and losses of almost $7 billion along the hurricane’s path.18 In the year following the
storm, FEMA has provided $1.9 billion in federal funds for housing assistance, disaster loans,
public assistance grants, and hazard mitigation grants.19 Businesses have been slow to reopen,
largely due to a shortage of workers worsened by the lack of affordable housing in the area.
Public Swimming and Bathing Facilities
Chapter 514, F.S., governs public swimming and bathing facilities. The Department of Health
(DOH) and county health departments are jointly responsible for administering the permitting,
safety, and sanitation regulations for public swimming pools set forth in this chapter.20
15
Chapter 2011-142, s. 150, Laws of Fla.
16
Section 288.106(8), F.S.
17
Florida Department of Economic Opportunity, 2019 Incentives Report, 7-8, available at
http://www.floridajobs.org/docs/default-source/reports-and-legislation/2018-2019-annual-incentives-report---
final.pdf?sfvrsn=c2a340b0_2 (last visited Jan. 22, 2020).
18
“A year after Michael, Florida community still in crisis” Associated Press, October 9, 2019, available at
https://apnews.com/0d260a9ec44545458ab1f25b6f969a5a (last visited Jan. 22, 2020).
19
Federal Emergency Management Agency, Florida Hurricane Michael, available at https://www.fema.gov/disaster/4399
(last visited Jan. 22, 2020).
20
Section 514.011, F.S., defines “public swimming pool” or “pool” as a watertight structure of concrete, masonry, or other
approved materials which is located either indoors or outdoors, used for bathing or swimming by humans, and filled with a
filtered and disinfected water supply, together with buildings, appurtenances, and equipment used in connection therewith. A
public swimming pool or public pool shall mean a conventional pool, spa-type pool, wading pool, special purpose pool, or
water recreation attraction, to which admission may be gained with or without payment of a fee and includes, but is not
limited to, pools operated by or serving camps, churches, cities, counties, day care centers, group home facilities for eight or
more clients, health spas, institutions, parks, state agencies, schools, subdivisions, or the cooperative living-type projects of
five or more living units, such as apartments, boardinghouses, hotels, mobile home parks, motels, recreational vehicle parks,
and townhouses.
BILL: CS/SB 922 Page 5
Anyone wishing to construct, develop, or modify a public swimming pool in Florida must submit
an application for an operating permit before filing an application for a building permit under s.
553.79, F.S. Applications must include:21
A description of the structure, its appurtenances, and its operation;
A description of the source or sources of water supply, and the amount and quality of water
available and intended to be used;
The method and manner of water purification, treatment, disinfection, and heating;
The safety equipment and standards to be used; and
A copy of the final inspection from the local enforcement agency, as defined in s. 553.71,
F.S.
The DOH is authorized to establish a schedule of fees for plan approval and permitting.22
Operating permits must be renewed annually and may be transferred from one name or owner to
another.23
Public swimming pools must be equipped with an anti-entrapment system or device pursuant to
s. 514.0315, F.S.
The DOH is authorized to deny an application for a permit, suspend or revoke a permit, or
impose an administrative fine upon the failure to comply with the provisions of ch. 514, F.S. The
DOH may, at any reasonable time, enter any and all parts of a public swimming pool to examine
and investigate the pool’s sanitary and safety conditions.24 Any public swimming pool that
presents a significant risk to public health by failing to meet sanitation and safety standards is
declared a public nuisance. Such nuisances may be abated in an action brought by the DOH or a
county health department.25
If a county health department is staffed with qualified engineering personnel, the DOH shall
assign a county health department the functions of: (1) reviewing applications and plans for the
construction, development, or modification of public swimming pools, (2) conducting
inspections, and (3) issuing all permits. County health departments are also responsible for the
routine surveillance of water quality in all public swimming pools.26
III. Effect of Proposed Changes:
CS/SB 922 amends certain provisions in s. 288.106, F.S., regarding economic recovery
extensions and additional tax refunds for qualified businesses in Disproportionally Affected
Counties. The bill also creates a provision in Chapter 514, F.S., regarding public swimming and
bathing facilities, to authorize a supervisory exemption for certain surf pools.
21
Sections 514.03 and 514.031, F.S.
22
Section 514.033, F.S.
23
Sections 514.031(2) and (3), F.S.
24
Section 514.04, F.S.
25
Section 514.06, F.S.
26
Section 514.025, F.S.
BILL: CS/SB 922 Page 6
Qualified Target Industry Tax Refund Program
Under current law, a qualified target industry business was authorized to submit a request for an
economic recovery extension in lieu of any tax refund claim scheduled to be submitted between
January 1, 2009, and July 1, 2012. The bill amends s. 288.106(5)(b)4, F.S., which would allow a
qualified target industry business located in a county affected by Hurricane Michael to apply for
an economic recovery extension in lieu of any tax refund claim scheduled to be submitted after
January 1, 2021, but before July 1, 2023. A business that receives an economic recovery
extension may not receive a tax refund for the period covered by the extension, which is not to
exceed 2 years.
Section 288.106(8), F.S., authorized the DEO to waive any or all wage or local financial support
requirements between July 1, 2011, and June 30, 2014, for a business located in a
“Disproportionally Affected County.” During this period, a qualified target industry business
relocating all or part of its business to a “Disproportionally Affected County” from another state
was also eligible for a tax refund of $6,000 per job created. The bill would replace all references
to a “Disproportionally Affected County” in s. 288.106, F.S., with a “county affected by
Hurricane Michael” and update the period during which requirements can be waived and
businesses can receive an additional tax refund to between July 1, 2020, and June 30, 2023.
DEO’s decision to waive wage or financial support eligibility requirements would also have to
be stated in writing. The bill would increase the additional tax refund to $10,000 per created job
and entitle a business that “relocates from another state to, or establishes its business or expands
its existing business in, a county affected by Hurricane Michael” to such a refund. The bill
defines a “county affected by Hurricane Michael” as Bay, Calhoun, Franklin, Gadsden, Gulf,
Holmes, Jackson, Jefferson, Leon, Liberty, Okaloosa, Wakulla, Walton, or Washington County.
Section 189.033, F.S., relating to independent special district services in disproportionally
affected counties, refers to the definition of “disproportionally affected county” found in s.
288.106(8), F.S. The bill removes this cross-reference and provides that, as used in s. 189.033,
F.S., the term “disproportionally affected county” retains its original definition of Bay,
Escambia, Franklin, Gulf, Okaloosa, Santa Rosa, Walton, or Wakulla County.
The bill removes the tax refund program’s expiration date of June 30, 2020, and would
permanently reauthorize the program.
Swimming and Bathing Facilities
The bill creates a provision in ch. 514, F.S., regarding public swimming and bathing facilities, to
authorize a supervisory exemption for certain surf pools. Under the bill, a surf pool that is larger
than 4 acres and certified by the DEO as part of a new development with an investment value of
at least $100 million would be exempt from supervision under ch. 514, F.S., provided that it is
permitted by a local government pursuant to a special use permit process. Through the special
use permitting process, the local government asserts regulatory authority over the construction of
the surf pool, and in consultation with the Department of Health, establishes the conditions for
the surf pool’s operation, water quality, and necessary lifesaving equipment. These provisions do
not affect the DOH’s ability to enter any and all premises of public swimming pools to examine
BILL: CS/SB 922 Page 7
sanitary and safety conditions, or its authority to seek an injunction to restrain the operation of a
surf pool if it presents significant public health risks.
The bill defines “surf pool” as “a pool designed to generate waves dedicated to the activity of
surfing on a surfboard or analogous surfing device commonly used in the ocean and intended for
sport, as opposed to general play intent for wave pools, other large-scale public swimming pools,
or other public bathing places.”
Effective Date
The bill takes effect July 1, 2020.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
Article III, Section 6 of the State Constitution requires every law to “embrace but one
subject and matter properly connected therewith.” This single subject requirement is
intended to prohibit logrolling, in which multiple unrelated measures are combined in one
bill in order to secure passage of a measure that is unlikely to pass on its own merits.27
An act may be as broad as the Legislature chooses, provided the matters included in the
act have a natural or logical connection.28 The requirement is violated if an act is written
to accomplish separate and disassociated objects of legislative intent.29 The Florida
Supreme Court has opined that the single subject clause contains three requirements.
First, each law shall embrace only one subject. Second, the law may include any matter
that is properly connected with the subject. The third requirement, related to the first, is
that the subject shall be briefly expressed in the title.30
27
Santos v. State, 380 So.2d 1284 (Fla. 1980).
28
Chenoweth v. Kemp, 396 So.2d 1122 (Fla. 1981).
29
State ex rel. Landis v. Thompson, 163 So. 270 (Fla. 1935).
30
Franklin v. State, 887 So.2d 1063, 1072 (Fla. 2004).
BILL: CS/SB 922 Page 8
The subject matter which should be considered when determining whether an act
embraces a single subject is the subject expressed in the title.31 The test is whether the bill
is designed to accomplish separate objectives which have no natural or logical connection
to each other.32 An act that contains subjects designed to accomplish separate and
disassociated objects of legislative effort violates single subject.33
The bill is entitled “an act relating to economic development.” Section 1 of the bill
amends the qualified target industry program in Ch. 288, F.S., relating to commercial
development and capital improvements. Section 2 of the bill amends Ch. 514, F.S.,
relating to public swimming and bathing facilities, to exempt from DOH supervision the
construction of a surf pool certified by the DEO as part of a new development with an
investment value of at least $100 million, if a local government has permitted the surf
pool pursuant to a special use permit process.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference has not yet met regarding the bill.
The bill increases the amount of tax refunds that certain qualified target industry
businesses in specified counties are eligible to receive. However, the annual funding cap
of $35 million, pursuant to s. 288.095(3)(a), F.S., would still apply. This could decrease
the total number of tax refunds the DEO is able to award through the program.
B. Private Sector Impact:
The amount of tax refunds available to a qualified target industry business that relocates
to or expands into to a county affected by Hurricane Michael is increased from $6,000 to
$10,000 per created job, which could incentivize certain businesses to relocate to or
expand into those areas.
C. Government Sector Impact:
The Department of Economic Opportunity and the Department of Health have not yet
analyzed the bill’s potential impact.
VI. Technical Deficiencies:
None.
31
Ex parte Knight, 41 So. 786 (Fla. 1906).
32
Board of Pub. Instruction v. Doran, 224 So.2d 693 (Fla. 1969).
33
State ex rel. Landis v. Thompson, 163 So. 270, 283 (Fla. 1935).
BILL: CS/SB 922 Page 9
VII. Related Issues:
The bill gives the DEO new authority to “certify” whether a surf pool larger than 4 acres is part
of a new development with an investment value of at least $100 million. The bill does not
specify the process for this certification.
VIII. Statutes Affected:
This bill substantially amends sections 288.106 and 514.0115 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism on January 21, 2020:
Deletes a cross-reference to the definition of “disproportionally affected county”;
Defines “disproportionally affected county” in place of the cross-reference;
Defines “surf pool”;
Provides that certain surf pools are exempt from supervision established in ch. 514,
F.S., if a local government has permitted such a surf pool through a special use permit
process; and
Updates a reference to a redesignated statute.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 922
Ì8184726Î818472
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
01/21/2020 .
.
.
.
The Committee on Commerce and Tourism (Gruters) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Between lines 114 and 115
4 insert:
5 Section 2. Section 189.033, Florida Statutes, is amended to
6 read:
7 189.033 Independent special district services in
8 disproportionally affected county; rate reduction for providers
9 providing economic benefits.—If the governing body of an
10 independent special district that provides water, wastewater,
Page 1 of 2
1/16/2020 4:26:40 PM 577-02207-20
Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 922
Ì8184726Î818472
11 and sanitation services in a disproportionally affected county,
12 as defined in s. 288.106(8), determines that a new user or the
13 expansion of an existing user of one or more of its utility
14 systems will provide a significant benefit to the community in
15 terms of increased job opportunities, economies of scale, or
16 economic development in the area, the governing body may
17 authorize a reduction of its rates, fees, or charges for that
18 user for a specified period of time. A governing body that
19 exercises this power must do so by resolution that states the
20 anticipated economic benefit justifying the reduction as well as
21 the period of time that the reduction will remain in place. As
22 used in this section, the term “disproportionally affected
23 county” means Bay County, Escambia County, Franklin County, Gulf
24 County, Okaloosa County, Santa Rosa County, Walton County, or
25 Wakulla County.
26
27 ================= T I T L E A M E N D M E N T ================
28 And the title is amended as follows:
29 Delete line 17
30 and insert:
31 qualified target industry businesses; amending s.
32 189.033, F.S.; conforming a cross-reference to changes
33 made by the act; providing an
Page 2 of 2
1/16/2020 4:26:40 PM 577-02207-20
Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 922
Ì694026'Î694026
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
01/21/2020 .
.
.
.
The Committee on Commerce and Tourism (Gruters) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Between lines 114 and 115
4 insert:
5 Section 2. Present subsection (7) of section 514.0115,
6 Florida Statutes, is redesignated as subsection (8), and a new
7 subsection (7) is added to that section, to read:
8 514.0115 Exemptions from supervision or regulation;
9 variances.—
10 (7) A surf pool that is larger than 4 acres is exempt from
Page 1 of 3
1/17/2020 9:51:34 AM 577-02319-20
Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 922
Ì694026'Î694026
11 supervision under this chapter provided that it is permitted by
12 a local government pursuant to a special use permit process in
13 which the local government asserts regulatory authority over the
14 construction of the surf pool and, in consultation with the
15 department, establishes through the local government’s special
16 use permitting process the conditions for the surf pool’s
17 operation, water quality, and necessary lifesaving equipment.
18 This subsection does not affect the department’s or a county
19 health department’s right of entry pursuant to s. 514.04 or its
20 authority to seek an injunction pursuant to s. 514.06 to
21 restrain the operation of a surf pool permitted and operated
22 under this subsection if it presents significant risks to public
23 health. For the purposes of this subsection, the term “surf
24 pool” means a pool designed to generate waves dedicated to the
25 activity of surfing on a surfboard or analogous surfing device
26 commonly used in the ocean and intended for sport, as opposed to
27 general play intent for wave pools, other large-scale public
28 swimming pools, or other public bathing places.
29 Section 3. Subsection (7) of section 553.77, Florida
30 Statutes, is amended to read:
31 553.77 Specific powers of the commission.—
32 (7) Building officials shall recognize and enforce variance
33 orders issued by the Department of Health pursuant to s.
34 514.0115(8) s. 514.0115(7), including any conditions attached to
35 the granting of the variance.
36
37 ================= T I T L E A M E N D M E N T ================
38 And the title is amended as follows:
39 Delete line 17
Page 2 of 3
1/17/2020 9:51:34 AM 577-02319-20
Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 922
Ì694026'Î694026
40 and insert:
41 qualified target industry businesses; amending s.
42 514.0115, F.S.; exempting certain surf pools from
43 supervision under ch. 514, F.S.; providing exceptions,
44 defining the term “surf pool”; amending s. 553.77,
45 F.S.; conforming a cross-reference to changes made by
46 the act; providing an
Page 3 of 3
1/17/2020 9:51:34 AM 577-02319-20
Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 922
Ì460038$Î460038
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
01/21/2020 .
.
.
.
The Committee on Commerce and Tourism (Gruters) recommended the
following:
1 Senate Amendment to Amendment (694026)
2
3 Delete line 10
4 and insert:
5 (7) A surf pool that is larger than 4 acres and is
6 certified by the Department of Economic Opportunity to be a part
7 of a new development with an investment value of at least $100
8 million is exempt from
Page 1 of 1
1/17/2020 3:45:23 PM 577-02345-20
Florida Senate - 2020 SB 922 Florida Senate - 2020 SB 922
By Senator Gruters
23-00630B-20 2020922__ 23-00630B-20 2020922__
1 A bill to be entitled 30 refund each year. The failure to comply with the terms and
2 An act relating to economic development; amending s. 31 conditions of the tax refund agreement results in the loss of
3 288.106, F.S.; authorizing a qualified target industry 32 eligibility for receipt of all tax refunds previously authorized
4 business located in a county affected by Hurricane 33 under this section and the revocation by the department of the
5 Michael to submit a request to the Department of 34 certification of the business entity as a qualified target
6 Economic Opportunity for an economic recovery 35 industry business, unless the business is eligible to receive
7 extension in lieu of a tax refund claim scheduled to 36 and elects to accept a prorated refund under paragraph (6)(e) or
8 be submitted during a specified timeframe; authorizing 37 the department grants the business an economic recovery
9 the department to waive certain requirements during a 38 extension.
10 specified timeframe; requiring the department to state 39 1. A qualified target industry business may submit a
11 any waiver in writing; providing that certain 40 request to the department for an economic recovery extension.
12 businesses are eligible for a specified tax refund 41 The request must provide quantitative evidence demonstrating how
13 payment; defining the term “county affected by 42 negative economic conditions in the business’s industry, the
14 Hurricane Michael”; deleting obsolete provisions; 43 effects of a named hurricane or tropical storm, or specific acts
15 deleting a provision relating to the future expiration 44 of terrorism affecting the qualified target industry business
16 of certification for the tax refund program for 45 have prevented the business from complying with the terms and
17 qualified target industry businesses; providing an 46 conditions of its tax refund agreement.
18 effective date. 47 2. Upon receipt of a request under subparagraph 1., the
19 48 department has 45 days to notify the requesting business, in
20 Be It Enacted by the Legislature of the State of Florida: 49 writing, whether its extension has been granted or denied. In
21 50 determining whether an extension should be granted, the
22 Section 1. Paragraph (b) of subsection (5) and subsections 51 department shall consider the extent to which negative economic
23 (8) and (9) of section 288.106, Florida Statutes, are amended to 52 conditions in the requesting business’s industry have occurred
24 read: 53 in the state or the effects of a named hurricane or tropical
25 288.106 Tax refund program for qualified target industry 54 storm or specific acts of terrorism affecting the qualified
26 businesses.— 55 target industry business have prevented the business from
27 (5) TAX REFUND AGREEMENT.— 56 complying with the terms and conditions of its tax refund
28 (b) Compliance with the terms and conditions of the 57 agreement. The department shall consider current employment
29 agreement is a condition precedent for the receipt of a tax 58 statistics for this state by industry, including whether the
Page 1 of 4 Page 2 of 4
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2020 SB 922 Florida Senate - 2020 SB 922
23-00630B-20 2020922__ 23-00630B-20 2020922__
59 business’s industry had substantial job loss during the prior 88 30, 2023 2014, may waive any or all wage or local financial
60 year, when determining whether an extension shall be granted. 89 support eligibility requirements. If the department elects to
61 3. As a condition for receiving a prorated refund under 90 waive wage or financial support eligibility requirements, the
62 paragraph (6)(e) or an economic recovery extension under this 91 waiver must be stated in writing. and allow A qualified target
63 paragraph, a qualified target industry business must agree to 92 industry business that relocates from another state to, or
64 renegotiate its tax refund agreement with the department to, at 93 establishes which relocates all or a portion of its business or
65 a minimum, ensure that the terms of the agreement comply with 94 expands its existing business in, a to a Disproportionally
66 current law and the department’s procedures governing 95 Affected county affected by Hurricane Michael is eligible to
67 application for and award of tax refunds. Upon approving the 96 receive a tax refund payment of up to $10,000 $6,000 multiplied
68 award of a prorated refund or granting an economic recovery 97 by the number of jobs specified in the tax refund agreement
69 extension, the department shall renegotiate the tax refund 98 under subparagraph (5)(a)1. over the term of the agreement.
70 agreement with the business as required by this subparagraph. 99 Prior to granting such waiver, the executive director of the
71 When amending the agreement of a business receiving an economic 100 department shall file with the Governor a written statement of
72 recovery extension, the department may extend the duration of 101 the conditions and circumstances constituting the reason for the
73 the agreement for a period not to exceed 2 years. 102 waiver. Such business shall be eligible for the additional tax
74 4. A qualified target industry business located in a county 103 refund payments specified in subparagraph (3)(b)4. if it meets
75 affected by Hurricane Michael, as defined in subsection (8), may 104 the criteria. As used in this section, the term
76 submit a request for an economic recovery extension to the 105 “Disproportionally Affected county affected by Hurricane
77 department in lieu of any tax refund claim scheduled to be 106 Michael” means Bay County, Calhoun County Escambia County,
78 submitted after January 1, 2021 2009, but before July 1, 2023 107 Franklin County, Gadsden County, Gulf County, Holmes County,
79 2012. 108 Jackson County, Jefferson County, Leon County, Liberty County,
80 5. A qualified target industry business that receives an 109 Okaloosa County, Santa Rosa County, Walton County, or Wakulla
81 economic recovery extension may not receive a tax refund for the 110 County, Walton County, or Washington County.
82 period covered by the extension. 111 (9) EXPIRATION.—An applicant may not be certified as
83 (8) SPECIAL INCENTIVES.—If the department determines it is 112 qualified under this section after June 30, 2020. A tax refund
84 in the best interest of the public for reasons of facilitating 113 agreement existing on that date shall continue in effect in
85 economic development, growth, or new employment opportunities 114 accordance with its terms.
86 within a Disproportionally Affected county affected by Hurricane 115 Section 2. This act shall take effect July 1, 2020.
87 Michael, the department may, between July 1, 2020 2011, and June
Page 3 of 4 Page 4 of 4
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
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CourtSmart Tag Report
Room: EL 110 Case No.: Type:
Caption: Commerce Committee Judge:
Started: 1/21/2020 10:03:02 AM
Ends: 1/21/2020 10:51:12 AM Length: 00:48:11
10:03:01 AM Roll call
10:03:14 AM Quorum is present
10:03:27 AM Tab 1, SB 666, Sen. Mayfield
10:05:47 AM Amendment 139688, Late-filed
10:06:07 AM Explanation by sponsor
10:06:56 AM Amendment adopted
10:07:03 AM Sen. Stewart, question
10:07:44 AM Response of sponsor
10:08:23 AM Close waived
10:08:29 AM Roll call on SB 666
10:08:36 AM CS/SB 666
10:08:46 AM Chair turned chair over to Sen. Torres to present
10:09:20 AM SB 922
10:10:06 AM 818472, Sen. Gruters
10:10:47 AM Amendment adopted
10:11:03 AM 460038 amendment to amendment 694026
10:11:42 AM Sen. Stewart question
10:11:55 AM Sen. Gruters respond
10:12:26 AM Follow up question and response
10:13:15 AM Amendment to amendment is adopted
10:13:28 AM Amendment (main amendment)
10:14:00 AM Vice chair Torres question
10:14:11 AM Sen. Gruters responds
10:14:36 AM Amendment adopted
10:15:44 AM Sen. Gruters close on SB 922
10:16:01 AM Roll call
10:16:10 AM CS/SB 922 is favorable
10:16:23 AM Tab 3, SB 1244, Sen. Albritton
10:18:44 AM Sen. Stewart question
10:18:55 AM Sponsor response
10:21:01 AM Follow up and response
10:22:15 AM Sen. Torres question
10:22:28 AM Response of sponsor
10:23:40 AM Waive close
10:23:45 AM Roll call
10:23:49 AM SB 1244 is favorable
10:24:04 AM Tab 2, SB 1112, Sen. Taddeo
10:28:45 AM Amendment
10:28:58 AM Amendment adopted
10:29:16 AM Vice chair Torres in chair
10:29:30 AM Sen. Gruters present amendment 689478
10:31:13 AM Sen. Stewart, question
10:31:53 AM Sen. Gruters response
10:32:12 AM Follow up and response
10:32:39 AM Sen. Torres question
10:32:52 AM Sen. Taddeo response
10:37:14 AM David Cullen, Sierra Club of FL
10:37:21 AM Ryan Smart, Florida Springs Council
10:38:52 AM Sen. Stewart, question/comment
10:41:16 AM Sen. Gruters comments
10:42:08 AM Roll call on amendment 689478
10:42:29 AM Amendment is not adopted
10:42:41 AM Chair back in chair
10:43:03 AM Lane Stephens, Nestle Waters USA, speak on the bill
10:47:09 AM Brewster Bevis, Assoc. Industries of FL
10:47:58 AM Sen. Taddeo close on SB 1112
10:49:29 AM Sen. Taddeo requested TP SB 1112
10:50:12 AM Motion adopted
10:50:15 AM Sen. Torres moved adjourment
THE FLORIDA SENATE COMMITTEES:
Appropriations Subcommittee on Transportation,
Tallahassee, Florida 32399-1100 Tourism, and Economic Development, Chair
Appropriations
Appropriations Subcommittee on Agriculture,
Environment, and General Government
Commerce and Tourism
Infrastructure and Security
Innovation, Industry, and Technology
Judiciary
Rules
SENATOR TRAVIS HUTSON
7th District
January 17, 2020
The Honorable Joe Gruters
404 S. Monroe Street
Tallahassee, FL 32399-1100
Dear Chair Gruters,
I am writing to request to be excused from the Commerce and Tourism meeting on January 21st,
2020 at 10:00am due to the birth of my child. Thank you for your consideration of this request.
Respectfully,
Travis Hutson
REPLY TO:
4875 Palm Coast Parkway, NW, Suite 5, Palm Coast, Florida 32137 (386) 446-7610 FAX: (888) 263-3475
314 Senate Building, 404 South Monroe Street, Tallahassee, Florida 32399-1100 (850) 487-5007
Senate’s Website: www.flsenate.gov
BILL GALVANO DAVID SIMMONS
President of the Senate President Pro Tempore
THE FLORIDA SENATE
COMMITTEES:
Tallahassee, Florida 32399-1100 Military and Veterans Affairs and Space, Chair
Children, Families, and Elder Affairs
Commerce and Tourism
Environment and Natural Resources
JOINT COMMITTEE:
Joint Administrative Procedures Committee
SENATOR TOM A. WRIGHT
14th District
January 21, 2020
The Honorable Joe Gruters
Committee on Commerce & Tourism
310 Knott Building
404 S. Monroe Street
Tallahassee, FL 32399
RE: Vote After Roll Call
Dear Chairman Gruters:
When I was presenting my bill in another committee I missed some votes today’s during
committee. I would like to record my vote for the record:
Yes - SB 666: Florida Development Finance Corporation by Senator Mayfield
Yes - SB 922: Economic Development by Senator Gruters
Thank you for receiving my votes for the record.
Sincerely,
Tom A. Wright
State Senator, District 14
REPLY TO:
4606 Clyde Morris Blvd., Suite 2-J, Port Orange, Florida 32129 (386) 304-7630
312 Senate Building, 404 South Monroe Street, Tallahassee, Florida 32399-1100 (850) 487-5014
Senate’s Website: www.flsenate.gov
BILL GALVANO DAVID SIMMONS
President of the Senate President Pro Tempore
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