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Home Source documents House of Representatives Staff Analysis — PCS for HB 1271 State Economic Development Entities (1/31/2020)

House of Representatives Staff Analysis — PCS for HB 1271 State Economic Development Entities (1/31/2020)

Issuer
Congressional materials
Document type
2020 3015 Workforce Development Tourism Subcommittee Proposed Committee Bill Analyses Fn P

Summary

A House of Representatives staff analysis, dated January 31, 2020, of the PCS for HB 1271, State Economic Development Entities, sponsored by the Workforce Development & Tourism Subcommittee. The analysis states that the bill replaces CareerSource with a state board for workforce development, requires CareerSource to operate under agreement with the Department of Economic Opportunity (DEO), and reassigns many of its duties to DEO or the state board. It also describes changes to the Florida Development Finance Corporation, enlarging its board from five to seven members and providing that s. 288.9604, F.S., stands repealed October 1, 2022, unless saved by the Legislature. The present-situation section reviews federal workforce law and a U.S. Department of Labor compliance review of two local boards. The fiscal analysis reports no impact, and the effective date is July 1, 2020.

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“House of Representatives Staff Analysis — PCS for HB 1271 State Economic Development Entities (1/31/2020).” Original at www.flhouse.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-3015-workforce-development-tourism-subcommittee-proposed-committee-bill-analyses-fn-pcs1271-wts/, SHA-256 2ec08b7283c6204f358747931f6c239efb1f20bed870852f34425a62506e8bf0.

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                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     PCS for HB 1271 State Economic Development Entities
SPONSOR(S): Workforce Development & Tourism Subcommittee
TIED BILLS:       IDEN./SIM. BILLS:

  REFERENCE                                                        ACTION                   ANALYST                STAFF DIRECTOR or
                                                                                                                   BUDGET/POLICY CHIEF

  Orig. Comm.: Workforce Development & Tourism                                              Willson                Barry
     Subcommittee

                                                         SUMMARY ANALYSIS
CareerSource is a not-for-profit corporation that serves as Florida’s state-level workforce investment board.
CareerSource is responsible for developing and implementing a 5-year plan for the statewide workforce
system in collaboration with the Department of Economic Opportunity (DEO), the local workforce development
boards, and one-stop career centers to ensure that workforce services provided are consistent with state and
local plans. CareerSource also provides state-level policy, planning, performance evaluation, and oversight of
the delivery of workforce services. Current law specifies that CareerSource is administratively housed within
DEO but that it is not subject to control, supervision, or direction by DEO in any manner.

The bill replaces CareerSource with a “state board” for the purpose of workforce development and
administration in Florida. The bill provides for the state board to serve as the board of directors for
CareerSource, and requires CareerSource to support and work at the direction of the state board, in
consultation with DEO. The bill repeals the provision stating that CareerSource is not subject to the control,
supervision, or direction of DEO, and specifies that CareerSource must operate under agreement with DEO.
The bill reassigns many of CareerSource’s powers, duties and responsibilities to DEO or the state board, or a
combination of the two. The bill also makes a number of conforming changes to reflect this adjustment in the
relationship between DEO, CareerSource Florida, and the state board.

The Florida Development Finance Corporation (FDFC) is a statewide development financing authority created
by the Legislature in 1993. The FDFC operates as a conduit bond issuer that issues bonds on behalf of
borrowers. 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.

The bill requires DEO to establish annual performance standards and develop a detailed report of the
performance of FDFC each year, which will be included in DEO’s annual report to the Governor, President and
Speaker.

The bill increases the membership of the FDFC board from five to seven, adding the executive director of DEO
(to serve as chair of the board) and the director of the Division of Bond Finance.

The bill provides that s. 288.9604, F.S., the statute creating and authorizing the FDFC, stands repealed
October 1, 2022, and every fourth year thereafter, unless reviewed and saved from repeal by the Legislature.

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

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




This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: pcs1271.WTS
DATE: 1/31/2020
                                                     FULL ANALYSIS

                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        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 workforce investment
        system.1 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 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 WIA were to better integrate workforce services, empower
        individuals, provide universal access to participants, increase accountability, and improve youth
        programs.4

        In response to 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 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, WIOA maintains the one-stop framework of WIA, and encompasses provisions aimed at
        streamlining services, easing reporting requirements, and reducing administrative barriers.9 WIOA
        officially became effective on July 1, 2015, the first full program year after enactment.

        Core Programs

        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, WIOA created a single set of common
        measures for the evaluation of core programs.11 WIOA requires performance reports to be provided at


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
  Ch. 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.
STORAGE NAME: pcs1271.WTS                                                                                               PAGE: 2
DATE: 1/31/2020
        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;
             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, 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 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

        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

        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 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 WIOA

        In 2016, Florida made changes to the workforce development system to conform to the new federal
        guidelines established by WIOA.22 Under the current workforce development system, 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.

        Department of Economic Opportunity (DEO)



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, Department of Housing and Urban Development,
Social Security Act, Perkins Career and Technical Education Act, the Community Service Block Grant Act, and certain adult
education and literacy activities. 29 U.S.C. § 3151(b).
21
   See 29 U.S.C. § 3151(2).
22
   Ch. 2016-216, Laws of Fla.
STORAGE NAME: pcs1271.WTS                                                                                            PAGE: 3
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        DEO serves as Florida’s lead workforce agency.23 DEO is responsible for the fiscal and administrative
        affairs of the workforce development system.24 DEO receives and distributes federal funds for
        employment-related programs to the local workforce development boards.25 Additionally, under the
        direction of CareerSource, 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)

        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 WIOA28 and collaborates with 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

        Review of CareerSource Tampa Bay and CareerSource Pinellas

        In response to a series of articles by the Tampa Bay Times,35 reporting on questionable practices,
        violations and malfeasance by CareerSource Tampa Bay and CareerSource Pinellas, the US
        Department of Labor conducted a review of the two local workforce development boards. The review
        found “fake” job placements, falsified records, and a number of other violations of WIA and WIOA,
        resulting in over $17 million in questionable costs.36

        In summary, the US Department of Labor reported that “The improper administration of Federal
        employment and training funds by the two local workforce boards lead to blatant non-compliance with
        WIOA requirements. This was further compounded by the lack of fiduciary oversight which fostered an
        environment vulnerable to mismanagement, waste, fraud, and abuse to occur undetected.” 37 The
        report detailed 17 findings of non-compliance and 3 areas of concern.

        Florida Development Finance Corporation

23
   Primarily through the Division of Workforce Services. See s. 20.60, F.S.
24
   S. 445.009(3)(c), F.S.
25
   See s. 445.003, F.S.
26
   See s. 445.007(3), F.S.
27
   S. 445.004(5)(a), F.S. Prior to 2014, CareerSource was known as Workforce Florida, Inc.
28
   S. 445.003(2), F.S.
29
   See s. 445.004, F.S.
30
   Id.
31
   DEO, CareerSource Florida Network Directory, http://lcd.floridajobs.org/ (last visited Jan. 17, 2020).
32
   See s. 445.009, F.S.
33
   See s. 445.004, F.S.
34
   S. 445.007(12), F.S.
35 Puente and Sampson, CareerSource: Read the entire investigation, TAMPA BAY T IMES (Dec. 21, 2018),

https://www.tampabay.com/investigations/2018/12/20/careersource-read-the-entire-investigation/ (last visited Jan. 22, 2020).
36
   U.S. Dept. of Labor, Compliance Review of CareerSource Tampa Bay and CareerSource Pinellas (May 15, 2019),
http://floridajobs.org/docs/default-source/lwdb-resources/program-monitoring-and-reports/2019-usdol-compliance-review-and-deo-
response/final-florida-compliance-review---cstb-csp-workforce-areas---16-may-2019.pdf?sfvrsn=2 (last visited Jan. 22, 2020)
37
   Id.
STORAGE NAME: pcs1271.WTS                                                                                                PAGE: 4
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        The Florida Development Finance Corporation (FDFC) is a statewide development financing authority
        created by the Legislature in 1993.38 The original purpose of the FDFC was to foster the growth of
        manufacturing and other strong job-creating businesses in Florida by brokering private-activity bond
        financing through inter-local agreements with counties, municipalities, and other local political
        subdivisions.39

        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.40 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.41 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.42 The directors do not receive compensation for their
        service, but are entitled to necessary expenses, including travel expenses.43 Lastly, the board is
        empowered to employ a staff to facilitate the FDFC’s functions.44

        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.

        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.45 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.46

        Pursuant to s. 288.9605, F.S., the FDFC operates as a conduit bond issuer that issues bonds on behalf
        of borrowers.47 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.48 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.49




38 Ch. 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.
39 S. 288.9602, F.S., generally expresses the legislative intent of the FDFC.
40 S. 288.9604(2), F.S.
41 S. 288.9604(2), F.S.
42 S. 288.9604(3), F.S.
43 S. 288.9604(3)(a)1., F.S.
44 S. 288.9604(3)(c), F.S.
45 Ch. 2010-139, ss. 2-10, Laws of Fla.
46 S. 288.9605(2)(e), F.S.
47 “[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, FDFC,
Bond Financing, https://www.fdfcbonds.com/traditional-bonds (last visited Jan. 21, 2020).
48 Id.
49 The guaranty may not exceed 5% of the aggregate principal amount of bonds or other indebtedness relating to any

capital project. S. 288.9607, F.S.
STORAGE NAME: pcs1271.WTS                                                                                             PAGE: 5
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        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.50 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.51 The FDFC helps its borrowers pursue Private Activity Bonds by assisting them
        with the additional qualification processes.52 In the fiscal year ending June 30, 2019, the FDFC
        facilitated the issuance of $2,885,710,000 in eight new money bonds.

        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.53 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.54 The PACE Program facilitated $19,353,886
        in five taxable residential bonds for the 2018-19 fiscal year.55

        FDFC’s revenues are generated exclusively by fees it charges for the issuance of bonds.56 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%).57

        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.58 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;
             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

50 FDFC, About Us, https://www.fdfcbonds.com/copy-of-about-us (last visited Jan. 21, 2020).
51 Steven Maguire and Joseph Hughes, Congressional Research Service, Private Activity Bonds: An Introduction (July 13,

2018), https://fas.org/sgp/crs/misc/RL31457.pdf (last visited Jan. 21, 2020).
52 FDFC, Bond Financing, supra.
53 FDFC, 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.
54 Id.
55 FDFC, Financial Statements for the Year Ended June 30, 2019, supra, at 3.
56 Id. at 6.
57 FDFC, Conduit Issuance Policy, 6-7 (Feb. 26, 2019), https://ca5cce56-0e6c-4988-82a7-

74892bf1d07e.filesusr.com/ugd/b1b27e_0b227d45ff2b4e139bb36f2846f70b4b.pdf (last visited Jan. 21, 2020).
58 Division of Bond Finance, About the Division of Bond Finance, https://www.sbafla.com/bond/Home/About-the-Division-

of-Bond-Finance (last visited January 21, 2020).
STORAGE NAME: pcs1271.WTS                                                                                      PAGE: 6
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                Undertake investigations.59

        The Division also determines the allocations for private activity bonds permitted to be issued in Florida
        under the Internal Revenue Code.60

        Effect of the Bill

        Florida’s Workforce Development System

        The bill defines the term "state board" to mean the state workforce development board established
        pursuant to the Workforce Innovation and Opportunity Act, Pub. L. No. 113-128, Title I, s. 101. The bill
        provides that the state board will be supported by CareerSource, which works at the direction of the
        state board in consultation with DEO.

        The bill reassigns many of CareerSource powers, duties and responsibilities to DEO, the state board,
        or the state board in consultation with DEO and makes a number of conforming changes to reflect this
        adjustment in the relationship between DEO, CareerSource, and the state board.

        The bill specifies that CareerSource must operate under an agreement with DEO and repeals the
        provision in current law which states that CareerSource is not subject to the control, supervision, or
        direction of DEO.

        The bill provides for the state board to serve as the board of directors of CareerSource. The bill also
        provides for the state board to hire an executive director for CareerSource, who will serve as the
        president, the chief executive officer, and an employee of CareerSource.

        The bill directs CareerSource to:
            operate at the direction of the state board;
            provide support, including administrative support, to the state board;
            work at the direction of the state board in consultation with DEO when appropriate; and
            implement the policy directives of the state board and administer state workforce development
                programs as authorized by law, in accordance with its agreement with DEO.

        The bill authorizes the state board to hire a director and staff to assist in carrying out the functions and
        spending the funds made available through WIOA. The bill also directs the state board to authorize the
        director and staff to work with the department in carrying out the functions of WIOA.

        The bill requires that the state board notify the Governor and DEO of statewide or local workforce
        development and training needs that may require policy changes or an update to the state plan
        required under s. 445.003, F.S. The bill also requires CareerSource to report all donations and grants
        they receive to the state board and DEO.

        The bill authorizes the chief elected official of a local workforce development board to remove, for
        cause, a member of the local board, the executive director of the local board, or the designated person
        responsible for the operational and administrative functions of the local board.

        The bill defines the term "for cause" to include, but 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 bill also deletes a number of obsolete provisions.

        Florida Development Finance Corporation

59 S. 215.64, F.S.
60 S. 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).
STORAGE NAME: pcs1271.WTS                                                                                        PAGE: 7
DATE: 1/31/2020
       Relating to the board of directors of the Florida Development Finance Corporation, the bill:
           Increases the board of directors from five to seven members.
           Provides that the executive director of DEO, or his or her designee, serve as the chair of the
              board.
           Provides that the director of the Division of Bond Finance, or his or her designee, serve on the
              board.
           Specifies that the Governor will appoint the remaining five members, subject to confirmation by
              the Senate. Of the five appointed members:
                  o Three or more must be bankers or persons with experience in finance.
                  o One must be an economic development specialist.
           Specifies that the board may remove appointed directors under certain circumstances.

       The bill requires DEO to develop a detailed report concerning the performance of FDFC each year, and
       to include the report, along with an existing summary report of FDFC, in its annual report to the
       Governor, President and Speaker. The bill also requires DEO to establish annual performance
       standards for FDFC and to annually report on how such performance measures are being met.

       The bill provides that s. 288.9604, F.S., the statute creating and authorizing the FDFC, stands repealed
       October 1, 2022, and every fourth year thereafter, unless reviewed and saved from repeal by the
       Legislature.

       The bill specifies that an FDFC contract or interlocal agreement in existence before July 1, 2020, will
       remain in effect and be binding on successors.

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

   B. SECTION DIRECTORY:
       Section 1      Amends s. 445.002, F.S., defining the terms "for cause" and "state board".

       Section 2      Amends s. 445.003, F.S., replacing CareerSource Florida, Inc., with the state board or
                      the Department of Economic Opportunity in provisions relating to the implementation of
                      the federal Workforce Innovation and Opportunity Act; authorizing, rather than requiring,
                      certain funds to be reserved for the Incumbent Worker Training Program; conforming
                      provisions to changes made by the act; authorizing the state board to hire a director and
                      staff; requiring the state board to authorize the director and staff to work with the
                      department for specified reasons.

       Section 3      Amends s. 445.004, F.S., revising provisions relating to the operation of CareerSource
                      Florida, Inc.; revising the purpose of CareerSource Florida, Inc.; providing purpose for
                      the state board; revising the organizational structure of CareerSource Florida, Inc.;
                      providing requirements for the organizational structure of the state board; providing the
                      state board with powers and authority previously held by CareerSource Florida, Inc.;
                      revising the requirements related to such powers and authority; requiring the state
                      board, rather than CareerSource Florida, Inc., to submit an annual report to the
                      Governor and the Legislature; authorizing the Auditor General to conduct an audit of the
                      state board and programs or entities created by the state board; requiring the state
                      board, rather than CareerSource Florida, Inc., to establish certain uniform performance
                      accountability measures; requiring the state board, in consultation with the department,
                      to design the workforce development strategy for the state; requiring that the strategy be
                      approved by the Governor; revising requirements relating to the workforce development
                      system; authorizing the department to consult with the state board to issue certain
                      technical assistance letters.

       Section 4      Amends s. 445.006, F.S., requiring that the state board, rather than CareerSource
                      Florida, Inc., take certain actions relating to the state plan for workforce development.

STORAGE NAME: pcs1271.WTS                                                                                  PAGE: 8
DATE: 1/31/2020
       Section 5      Amends s. 445.007, F.S., replacing CareerSource Florida, Inc., with the state board or
                      the department in provisions relating to local workforce development boards; deleting the
                      definition of the term "cause"; authorizing a chief elected official for a local workforce
                      development board to remove certain persons from the board for cause; requiring the
                      department to provide certain guidance to specified entities; deleting an obsolete
                      provision; making technical changes.

       Section 6      Amends s. 445.0071, F.S., replacing CareerSource Florida, Inc., with the state board or
                      the department in provisions relating to the Florida Youth Summer Jobs Pilot Program.

       Section 7      Amends s. 445.008, F.S., revising authority relating to the Workforce Training Institute;
                      requiring that certain donations and grants be reported to the state board and the
                      department.

       Section 8      Amends s. 445.009, F.S., replacing CareerSource Florida, Inc., with the state board or
                      the department in provisions relating to one-stop delivery systems; deleting an obsolete
                      provision.

       Section 9      Amends s. 445.011, F.S., replacing CareerSource Florida, Inc., with the department in
                      provisions relating to workforce information systems; requiring the department to consult
                      with the state board in implementing certain automated information systems; deleting a
                      provision requiring CareerSource Florida, Inc., to take certain actions when procuring
                      workforce information systems.

   Sections 10-32     Conforms provisions to changes made by the act.

       Section 33     Amends s. 20.60, F.S., requiring the executive director of the Department of Economic
                      Opportunity to serve as the chair of the board of directors of the Florida Development
                      Finance Corporation; requiring the department to include specified information in its
                      annual report and develop annual performance standards for the corporation;
                      conforming provisions to changes made by the act.

       Section 34     Amends s. 288.9604, F.S., revising the membership of the board of directors of the
                      Florida Development Finance Corporation; conforming provisions to changes made by
                      the act; providing for future repeals; requiring the current chair and vice chair of the
                      board of directors of the Florida Development Finance Corporation to serve as appointed
                      directors after a specified date.

       Section 35     Provides construction.

       Section 36     Amends s. s. 288.9610, F.S., requiring the Florida Development Finance Corporation to
                      submit an annual report containing specified information to the Department of Economic
                      Opportunity.

       Section 37     Provides that certain contracts and interlocal agreements remain in effect and binding
                      under certain circumstances.

       Section 38     Provides for an effective date.


                        II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

STORAGE NAME: pcs1271.WTS                                                                                 PAGE: 9
DATE: 1/31/2020
       2. Expenditures:
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:
       None.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not Applicable. This bill does not appear to affect county or municipal governments.

       2. Other:
          None.

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

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                        IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: pcs1271.WTS                                                                        PAGE: 10
DATE: 1/31/2020


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