House of Representatives Staff Analysis — PCB RRS 23-01 Space Florida, Regulatory Reform & Economic Development Subcommittee (3/14/2023)

Issuer: Congressional materials
Document type: 2023 3236 Regulatory Reform Economic Development Subcommittee Proposed Committee Bill Anal

Summary

A House of Representatives staff analysis of proposed committee bill PCB RRS 23-01, Space Florida, sponsored by the Regulatory Reform & Economic Development Subcommittee and dated 3/14/2023. It describes current law governing Space Florida, an independent special district, including its powers, duties, annual reports, board of directors and travel and entertainment expense rules. The analysis states the bill separates the Space Florida board from the Enterprise Florida, Inc. board, requires Space Florida to solicit input from spaceport territory stakeholders, expands its annual report and adds it to reviews by EDR and OPPAGA. The section-by-section analysis lists amendments to s. 331.3101, F.S., s. 331.312, F.S., s. 331.313, F.S., s. 331.324, F.S. and s. 331.360, F.S., effective July 1, 2023. The fiscal analysis reports no state or local revenue or expenditure impact.

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Cite this document

“House of Representatives Staff Analysis — PCB RRS 23-01 Space Florida, Regulatory Reform & Economic Development Subcommittee (3/14/2023).” Original at www.flhouse.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-3236-regulatory-reform-economic-development-subcommittee-proposed-committee-bill-analyses-fn-pcb01-rrs/, SHA-256 ffec1a80395d930cc0a34d7fc721a8fa38289792ecc56d611d4b73c9351acac6.

Full text

HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCB RRS 23-01 Space Florida
SPONSOR(S): Regulatory Reform & Economic Development Subcommittee
TIED BILLS: IDEN./SIM. BILLS:

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

Orig. Comm.: Regulatory Reform & Economic Thompson Anstead
Development Subcommittee

SUMMARY ANALYSIS
Established by the Legislature in 2006, Space Florida was created to promote and foster the growth and
development of a sustainable and world-leading aerospace industry in this state. Space Florida is an
independent special district and subject to the provisions of the Uniform Special District Accountability Act,
which governs such issues as operations, financial reporting, taxation, assessments, elections, compliance
with general law, and comprehensive planning. Space Florida officials and employees are subject to public
notice and ethics requirements for officials and employees with few exceptions.

Space Florida is governed by a 13 member independent board of directors (Board), consisting of the 12 private
sector members of the Enterprise Florida, Inc. (EFI), board of directors, who are appointed by the Governor,
President of the Senate, and Speaker of the House of Representatives, plus the Governor or Governor’s
designee, who is a voting member and serves as the chair.

The bill revises provisions governing Space Florida to increase collaboration with public and private
stakeholders regarding spaceport activities, enhance transparency measures regarding spaceport projects,
and makes several revisions to the Board. In part, the bill:
 Separates the Board from the EFI board, establishes membership and appointment criteria, term
lengths, prohibits compensation, provides per diem and travel limits, allows electronic meetings, and
provides quorum requirements.
 Requires Space Florida to:
o Solicit input on Space Florida plans and activities from the aerospace industry, private sector
spaceport territory stakeholders, each entity that owns or has ownership interest in a facility
within spaceport territory, and other political subdivisions within spaceport territory.
o Solicit input from certain federal aerospace entities and political subdivisions that own facilities
within spaceport territory regarding the spaceport master plan.
o Include additional economic data in the Space Florida annual report to the Governor and
Legislature.
o Explain certain travel and entertainment expenditures and address recent audit findings.
o Assess and report on contracts with service organizations.
 Includes Space Florida among the list of economic development programs scheduled to be reviewed
and analyzed by the Office of Economic and Demographic Research (EDR) and the Office of Program
Policy Analysis and Government Accountability (OPPAGA).
 Adds Space Florida as an entity that the Department of Economic Opportunity (DEO) has contract
authority over and requires DEO’s annual repot to include Space Florida information.
 Requires the Board to conduct new member training using DEO’s board member training program.

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

The effective date of the bill is July 1, 2023.

This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: pcb01.RRS
DATE: 3/14/2023
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Current Situation

Space Florida

In 2006, the Legislature passed the Space Florida Act, 1 which consolidated Florida’s three existing
space entities, the Florida Space Authority, the Florida Space Research Institute, and the Florida
Aerospace Finance Corporation, into a single entity called Space Florida.2 Space Florida is established
as an independent special district, a body politic and corporate, and a subdivision of the state, to foster
the growth and development of a sustainable and world-leading aerospace industry in the state. Space
Florida has all the powers, rights, privileges, and authority as provided under the laws of this state.3

Space Florida acts as Florida’s point of contact for state aerospace-related activities with federal
agencies, the military, state agencies, businesses, and the private sector. 4 Space Florida is authorized
to purchase or construct facilities, set rates, fees, and charges for the use of facilities, and undertake
joint financing with municipalities or private sector entities for any project. 5

According to Space Florida’s 2022 Annual Operations Report, as of July 1, 2022, Space Florida had 85
total projects in development with an estimated value of $2.4 billion in capital investment, and provided
$4.3 million in funding for 30 research projects, partnerships, and grants.6

Powers of Space Florida

In furtherance of its duties, Space Florida is given certain powers, including, but not limited to:7
 Using a corporate seal;
 Using patents, copyrights and trademarks;
 Lending and investing money;
 Acquiring certain properties;
 Executing contracts;
 Issuing revenue bonds;
 Making expenditures for entertainment and travel expenses and business clients, guests, and
other authorized persons; and
 Fixing and collecting fees, loan payments, rental payments, and other charges in connection
with financing agreements.

Duties of Space Florida

In order to implement the Space Florida Act and carry out spaceport operations, Space Florida is given
certain duties, including, but not limited to, creating a business plan, entering into agreements and
cooperating with other state agencies, and consulting with appropriate federal agencies. 8

Specifically, Space Florida is required to:

1 Ch. 2006-60, Laws of Fla.
2 See ss. 331.301 through 331.371, F.S.
3 S. 331.302, F.S.
4 S. 331.3011, F.S.
5 S. 331.305, F.S.
6 Space Florida, Space Florida Annual Report 2022, https://www.spaceflorida.gov/wp-content/uploads/2023/01/Space-Florida-FY22-

Annual-Operating-Report.pdf (last visited Feb. 27, 2023).
7 S. 331.305, F.S.
8 S. 331.3051, F.S.
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 Enter into agreements with the Department of Education (DOE), the Department of
Transportation (DOT), Enterprise Florida, Inc. (EFI), and CareerSource Florida, Inc. (CSF).9
 In cooperation with EFI, develop a plan to retain, expand, attract, and create aerospace industry
entities, public or private, which results in the creation of high-value-added businesses and jobs
in this state.10
 Develop, in cooperation with EFI, a plan to provide financing assistance to aerospace
businesses.11
 Carry out its responsibilities for spaceport operations by:12
o Seeking federal support and developing partnerships to renew and upgrade the
infrastructure and technologies at the Cape Canaveral Air Force Station, the John F.
Kennedy Space Center, and the Eastern Range.
o Supporting federal efforts to clarify roles and responsibilities of federal agencies in an
effort to streamline access for commercial launch users.
o Pursuing the development of commercial spaceports in the state in partnership with
counties or municipalities, the Federal Government, or private entities.
o Promoting and facilitating launch activity within the state by supporting and assisting
commercial launch operators’ interactions with federal agencies for launching from
Florida.
o Consulting, as necessary, with the appropriate federal, state, and local authorities,
including the National Aeronautics and Space Administration (NASA), Federal Aviation
Administration (FAA), Department of Defense (DOD), DOT, Florida National Guard, and
industry on establishing and operating spaceport infrastructure and facilities in the state.

Annual Reports

Space Florida is required to provide an annual report to the Governor, the President of the Senate, and
the Speaker of the House of Representatives on its performance with respect to its business plan,
financing, spaceport operations, research and development, workforce development, and education.
Space Florida is required to submit the report by November 30 for the previous fiscal year. The annual
report must include operations information from its annual report of operations.13

Annual Report of Operations

The Space Florida board of directors is required to prepare an annual report of operations as a
supplement to the annual report. The report must include, but not be limited to, a balance sheet, an
income statement, a statement of changes in financial position, a reconciliation of changes in equity
accounts, a summary of significant accounting principles, the auditor’s report, a summary of the status
of existing and proposed bonding projects, comments from management about the year’s business,
and prospects for the next year.14

Transportation and Public Utilities Facilities

Space Florida is authorized to:15
 Own, acquire, construct, reconstruct, equip, operate, maintain, extend, or improve
transportation facilities appropriate to meet the transportation requirements of Space Florida
and activities conducted within spaceport territory;
 Own, acquire, construct, reconstruct, equip, operate, maintain, extend, or improve electric
power plants, transmission lines and related facilities, gas mains and facilities of any nature for
the production or distribution of natural gas, transmission lines and related facilities and plants

9 S. 331.3051(2), F.S.
10 S. 331.3051(3), F.S.
11 S. 331.3051(6), F.S.
12 S. 331.3051(7), F.S.
13 S. 331.3051(11), F.S.
14 S. 331.310(2)(e), F.S.
15 S. 331.305(12) and (13), F.S.
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and facilities for the generation and transmission of power through traditional and new and
experimental sources of power and energy;
 Purchase electric power, natural gas, and other sources of power for distribution within any
spaceport territory;
 Develop and operate water and sewer systems and waste collection and disposal; 16 and
 Develop and operate such new and experimental public utilities, including, but not limited to,
centrally distributed heating and air-conditioning facilities and services, closed-circuit television
systems, and computer services and facilities, as the board may from time to time determine.

Space Florida Board of Directors

Space Florida is governed by a 13 member17 independent board of directors (Space Florida Board).
The Governor, or the Governor’s designee, is a voting member and serves as the chair. 18 The 12
appointed private sector members of the EFI board of directors also serve, by default, on the Space
Florida Board and are appointed to four-year terms.19

The duties of the Space Florida Board include:20
 Adopting rules and orders to conduct the business of Space Florida, the maintenance of
records, and the form of all documents and records of Space Florida.
 Maintaining an executive office and Space Florida offices in close proximity to the John F.
Kennedy Space Center.
 Appointing a president of Space Florida, and determining his or her title, functions, duties,
powers, and salary.
 Abiding by all applicable federal labor laws in the construction and day-to-day operations of
Space Florida and any spaceport.
 Preparing the annual report of operations as a supplement to its annual report, which is also
required by law.

The Space Florida Board is authorized to exercise the following powers: 21
 Enter, and authorize any agent or employee of Space Florida to enter, upon any lands, waters,
and premises, upon giving reasonable notice and due process to the land owner, for the
purposes of making surveys, soundings, drillings, appraisals, and examinations necessary to
perform its duties and functions.
 Execute all contracts and other documents, adopt all proceedings, and perform all acts
determined by the Space Florida Board to be necessary or desirable to carry out the purposes
given it in statute.
 Establish and create such departments, committees, or other entities as from time to time the
Space Florida Board deems necessary or desirable in the performance of any acts or other
things necessary to the exercise of the powers provided in statute.
 Provide financial services to support aerospace-related business development within the state.
Financial services may include, but are not limited to:
o Insuring, coinsuring, or originating for sale direct aerospace-related loans.
o Direct lending.
o Guaranteeing and collateralizing loans.
o Creating accounts.
o Capitalizing, underwriting, leasing, selling, or securing funding for aerospace-related
infrastructure.
o Investing in permissible securities.
o Organizing financial institutions and international bank syndicates.

16 This must be done consistent with ch. 88-130, Laws of Fla.
17 Six members are appointed by the Governor, three members are appointed by the President of the Senate, and three members are
appointed by the Speaker of the House of Representatives. S. 288.901(5)(a)7., F.S.
18 S. 331.3081, F.S.
19 S. 288.901(5)(a)8., F.S.
20 S. 331.310(2), F.S.
21 S. 331.310(1), F.S.
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o Acquiring, accepting, or administering grants, contracts, and fees from other
organizations to perform activities that are consistent with the purposes of Space
Florida’s business plan. If the Space Florida Board deems a financial services entity is
necessary, the Space Florida Board may create, form, or contract with one or more such
entities.
 Examine, and authorize any officer or agent of Space Florida to examine, the county tax rolls
with respect to the assessed valuation of the real and personal property within any spaceport
territory.
 Engage in the planning and implementation of space-related economic and educational
development within the state.
 Provide the strategic direction for the aerospace-related research priorities of the state and its
aerospace-related businesses.
 Execute intergovernmental agreements and development agreements consistent with prevailing
statutory provisions, including, but not limited to, special benefits or tax increment financing
initiatives.
 Establish reserve funds for future Space Florida Board operations.
 Adopt rules to carry out the purposes of the Space Florida Act.

Travel and Entertainment Expenses

Notwithstanding the provisions for per diem and travel expenses for public officers, employees, and
authorized persons, and the statewide travel management system,22 Space Florida is required to adopt
rules for travel and entertainment expenses that:23
 Make expenditures by advancement or reimbursement, or a combination thereof, to Space
Florida officers and employees;
 Reimburse business clients, guests, and authorized persons;24 and
 Make direct payments to third-party vendors.

The travel and entertainment expenses of business clients, guests, and authorized persons must be
incurred by Space Florida in connection with the performance of its statutory duties. The travel
expenses of state officials and employees must be incurred while accompanying business clients,
guests, or authorized persons or when authorized by the Space Florida Board or its designee. The
entertainment expenses for Space Florida officials and employees must be incurred while in the
physical presence of such business clients, guests, or authorized persons. 25

The travel and entertainment rules are subject to approval by the Chief Financial Officer (CFO) before
adoption, and are prescribed as follows:26
 Must require the submission of paid receipts, or other proof prescribed by the CFO, with any
claim for reimbursement.
 Must require, as a condition for any advancement, an agreement to submit paid receipts or
other proof and to refund any unused portion of the advancement within 15 days after the
expense is incurred or, if the advancement is made in connection with travel, within 15 days
after completion of the travel.
 With respect to an advancement made solely for travel expenses, the rules may allow paid
receipts or other proof to be submitted, and any unused portion of the advancement to be
refunded, within 30 days after completion of the travel.

22 S. 112.061, F.S.
23 S. 331.3101, F.S.
24 “Authorized persons” are defined in s. 112.061(2)(e), F.S., as a person other than a public officer or employee, whether elected or

commissioned or not, who is authorized by an agency head to incur travel expenses in the performance of official duties; called upon
by an agency to contribute time and services as consultant or adviser; a candidate for an executive or professional position.
25 S. 331.3101(1), F.S.
26 S. 331.3101(2), F.S.
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An annual report must be made to the Legislature not later than November 30 of each year for the
previous fiscal year that consists of a synopsis concisely summarizing all travel, entertainment, and
incidental expenses incurred inside and outside of the U.S.27

Claims are not required to be sworn to but are required to contain a statement that the expenses were
necessary in the performance of official duties of Space Florida and verified by written declaration.28
Untrue or incorrect claims, and fraudulent or false claims, are a second degree misdemeanor,
punishable by a term of imprisonment of up to 60 days 29 and a $500 fine.30 Whoever receives an
advancement or reimbursement by means of a false claim is civilly liable, in the amount of the
overpayment, for the reimbursement of the public fund from which the claim was paid. 31

Effective July 1, 2022 through July 1, 2023, Space Florida is required to adhere to certain travel and
entertainment restrictions. In addition to the requirements set forth for the annual report summarizing all
travel, entertainment, and incidental expenses, the 2022 annual report by Space Florida must also:
 Provide an itemized accounting, by date of travel, of all travel, entertainment, and incidental
expenses incurred;
 To the extent such expenses exceed the generally allowable expense limits for per diem and
travel expenses of public officers, employees, and authorized persons, provide reasons behind
the need to exceed such statutory expense limits;
 Categorize expenses for Space Florida Board members, staff, employees, and business clients.
The report must also set forth any expenses authorized by the Space Florida Board or its
designee for a guest; and
 Include information related to corrective actions and steps taken by Space Florida to address
the findings in Auditor General Report No. 2022-049.32

Furnishing Facilities and Services within the Spaceport Territory

Space Florida is authorized to construct, develop, create, maintain, and operate its projects within the
geographical limits of the spaceport territory. This includes any portions of the spaceport territory
located inside the boundaries of any incorporated municipality or other political subdivision.33

Space Florida is authorized to offer, supply, and furnish the facilities and services provided for in the
Space Florida Act, and establish and collect fees, rentals, and other charges, within the geographical
limits of the spaceport territory and for the use of Space Florida itself.34

Power of Space Florida with Respect to Roads

Within the territorial limits of any spaceport territory, Space Florida is authorized to acquire, through
purchase or interagency agreement, or as otherwise provided in law, to construct, control, and
maintain, roads, connections and extensions that it deems necessary in accordance with established
highway safety standards.35

If a road being addressed by Space Florida is owned by another agency or jurisdiction, Space Florida,
before proceeding with the proposed project or work activity, must coordinate the desired work with the
owning agency or jurisdiction or successfully execute an interagency agreement with the owning
agency or jurisdiction.36

27 S. 331.3101(3), F.S.
28 S. 331.3101(4), F.S.
29 S. 775.082(4)(b), F.S.
30 S. 775.083(1)(e), F.S.
31 Id.
32 State of Florida Auditor General, SPACE FLORIDA Board Duties and Governance and Selected Administrative Activities,

https://flauditor.gov/pages/pdf_files/2022-049.pdf (last visited Mar. 1, 2023).
33 S. 331.312, F.S.
34 Id.
35 S. 331.313, F.S.
36 Id.
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Contracts, Grants and Contributions

Space Florida is authorized to:37
 Make and enter all contracts and agreements necessary or incidental to the performance of its
functions and execution of its powers.
 Contract with, and accept and receive grants or loans of money, material, or property from, any
person, private or public as the Space Florida Board determines necessary or desirable to carry
out the purposes of the Space Florida Act.
 In connection with any such contract, grant, or loan, stipulate and agree to such covenants,
terms, and conditions as the Space Florida Board deems appropriate.

Spaceport Master Plan

Space Florida is required to develop a spaceport master plan for expansion and modernization of
space transportation facilities within spaceport territories. The plan must contain recommended projects
to meet current and future commercial, national, and state space transportation requirements. 38

Space Florida is required to submit the plan to:39
 Any appropriate metropolitan planning organization for review of intermodal impacts.
 DOT, and it may be included within DOT’s five-year work program of qualifying aerospace
discretionary capacity improvement.

The plan must identify appropriate funding levels and include recommendations on appropriate sources
of revenue that may be developed to contribute to the State Transportation Trust Fund. 40

Special Districts

Space Florida is an independent special district, and subject to the provisions of the Uniform Special
District Accountability Act, to the extent that the provisions of that act do not conflict with the Space
Florida Act.41 The Uniform Special District Accountability Act sets forth the general provisions for all
special districts, addressing such issues as creation, operation, financial reporting, taxation,
assessments, elections, definitions, compliance with general law, and comprehensive planning.42

A "special district" is a unit of local government created for a particular purpose, with jurisdiction to
operate within a limited geographic boundary.43 Special districts are created by general law,44 special
act,45 local ordinance,46 or by rule of the Governor and Cabinet.47 A special district has only those
powers expressly provided by, or reasonably implied from, the authority provided in the district’s
charter.48 Special districts provide specific municipal services in addition to, or in place of, those
provided by a municipality or county.49

37 S. 331.324, F.S.
38 S. 331.360(3), F.S.
39 Id.
40 Id.
41 S. 331.302, F.S.
42 Ch. 189, F.S.
43 See Halifax Hospital Medical Center v. State of Fla., et al., 278 So. 3d 545, 547 (Fla. 2019).
44 S. 189.031(3), F.S.
45 Id.
46 S. 189.02(1), F.S.
47 S. 190.005(1), F.S. See, generally, s. 189.012(6), F.S.
48 Halifax Hosp. Med. Center, supra at 548.
49 Local Gov’t Formation Manual at p. 58, available at

https://myfloridahouse.gov/Sections/Documents/loaddoc.aspx?PublicationType=Committees&CommitteeId=3227&Session=2023&D
ocumentType=General+Publications&FileName=2022+Local+Govern ment+Format ion+Manual.pdf (last visited Jan. 25, 2023).
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A “dependent special district” is a special district where the membership of the governing body is
identical to the governing body of a single county or municipality, all members of the governing body
are appointed by the governing body of a single county or municipality, members of the district’s
governing body are removable at will by the governing body of a single county or municipality, or the
district’s budget is subject to the approval of governing body of a single county or munic ipality.50 An
“independent special district” is any district that is not a dependent special district 51 and may only be
created by legislative authorization as provided in the Uniform Special District Accountability Act.52

Special districts do not possess “home rule” powers and may impose only those taxes, assessments,
or fees authorized by special or general law. The special act creating an independent special district
may provide for funding from a variety of sources while prohibiting others. For example, ad valorem tax
authority is not mandatory for a special district.53

Special districts may enter into interlocal agreements with one or more other local governmental units. 54
Under such an agreement, the special district may exercise jointly with the other participating local
governments those powers, privileges, or authorities which they have in common and each may
exercise separately.55

Special District Charter

The charter of a newly-created district must state whether it is dependent or independent. 56 Charters of
independent special districts must address and include a list of required provisions, including the
purpose of the district, its geographical boundaries, taxing authority, bond authority, and selection
procedures for the members of its governing body.57

Specifically, the charter creating an independent special district must contain the following: 58
 The purpose of the special district;
 The powers, functions and duties of the special district relating to ad valorem taxes, bonds and
other revenue-raising abilities, budget preparation and approval, liens and lien foreclosures, and
the use of tax deeds and certificates for non-ad valorem assessments and contractual
agreements;
 A method for establishing the district and amending the district charter;
 The membership, organization, compensation, and administrative duties of the governing board
and its members;
 Applicable financial disclosures, noticing, and reporting requirements;
 Procedures and requirements for bond issues, if the special district will issue bonds;
 Election procedures and requirements;
 A method for financing the district;
 Authorized millage rate, and methods for collecting non-ad valorem assessments, fees, or
service charges;
 Planning requirements; and
 District boundaries.

Special District Accountability

50 S. 189.012(2), F.S.
51 S. 189.012(3), F.S.
52 S. 189.011(1), F.S.
53 Art. VII, s. 9(a), Fla. Const.
54 S. 163.01(2), (3)(b), F.S.
55 S. 163.10(4), F.S.
56 S. 189.031(5), F.S.
57 S. 189.031(3), F.S.
58 S. 189.031, F.S.
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The Uniform Special District Accountability Act establishes a Special District Accountability Program
administered by the Department of Economic Opportunity (DEO) that provides certain oversight and
accountability measures that special districts must follow. Some of the duties of the program include:59
 Electronically publishing special district noncompliance status reports from the Department of
Management Services (DMS), the Department of Financial Service (DFS)s, the Division of Bond
Finance of the State Board of Administration (SBA), the Auditor General, and the Legislative
Auditing Committee.
 Maintaining the official list of special districts.
 Publishing and updating of a “Florida Special District Handbook.”
 Coordinating and communicating among state agencies regarding special districts.
 Providing technical advisory assistance to special districts.
 Providing assistance to local general-purpose governments and state agencies in collecting
delinquent reports or information.
 Helping special districts comply with reporting requirements.
 Declaring special districts inactive when directed by the Joint Legislative Auditing Committee
(JLAC) or required by the Uniform Special District Accountability Act.
 Initiating certain enforcement proceedings for failure to file reports and information.

The Uniform Special District Accountability Act requires special districts to comply with many of the
same accountability standards as those of counties and municipalities and state government. Examples
of these standards include:60
 Filing an Annual Financial Report with DFS disclosing the district's revenues, expenditures,
long-term debt, and other financial information.
 Filing a Financial Audit Report, performed by an independent Certified Public Accountant, with
the Florida Auditor General for review (most but not all special districts).
 Filing information with the SBA concerning advance notice of bond sales and new bond issues.
 Certifying to the state compliance with Truth-in-Millage requirements (if establishing a property
tax).
 Complying with ethics laws, including financial disclosures by governing board members and
certain employees.
 Conducting district business within the Government-in-the-Sunshine laws, including specific
public meeting requirements.

Special District Oversight

Special districts may be reviewed for general oversight purposes as follows: 61
 Each special district created by special act may be reviewed by the Legislature using the
process provided in s. 189.0651, F.S.
 Each special district created by local ordinance or resolution may be reviewed by the local
general-purpose government that enacted the ordinance or resolution using the process
provided in s. 189.0652, F.S.
 Each dependent special district not created by special act may be reviewed by the local
general-purpose government upon which it is dependent.
 All special districts created or established by rule of the Governor and Cabinet may be reviewed
as directed by the Governor and Cabinet.
 All other special districts may be reviewed as directed by the President of the Senate and the
Speaker of the House of Representatives.

Certain state agencies are responsible for monitoring special districts and collecting, reviewing,
interpreting, and summarizing financial information for the public, the Legislature and other officials.

59 S. 189.064, F.S.
60 Department of Economic Opportunity, Special District Accountability and Oversight, https://floridajobs.org/community-planning-

and-development/special-districts/special-district-accountability-program/special-district-accountability-and-oversight (last visited
Mar. 1, 2023).
61 S. 189.068, F.S.
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Therefore, each special district must submit the following reports and filings to various state and local
agencies and the Legislature, as applicable:62
 The Annual Financial Report;
 The Financial Audit Report;
 Bond financing related reports;
 Retirement system reports;
 Public facilities reports;
 Designation of registered office and agent;
 Regular Public Meeting Schedule;
 Charters (creation document), as amended; and
 Boundary maps, as amended.

Failure to File Reports or Information

Depending on the issue, when special districts fail to comply with a requirement, state and local
agencies, as well as citizens, can take action. For example:63
 Citizens can file ethics complaints with the Florida Commission on Ethics.
 The appropriate oversight entity, depending on how the special district was created, may
conduct a general oversight review process (applies to most, but not all, special districts).
 The Governor may suspend or remove a special district governing body member under certain
circumstances.
 The entity that created the special district can amend, merge, or dissolve the special district.
 The state attorney for the area can investigate and prosecute district officials who violate
Government-in-the-Sunshine laws.
 JLAC can send state auditors to a district if something warrants such action.
 JLAC and/or DMS can request DEO to file a petition in the Leon County circuit court to compel
compliance when special districts fail to file certain financial reports with the state.
 JLAC, at the direction of the President of the Senate and the Speaker of the House of
Representatives, may convene a public hearing on the issue of noncompliance concerning any
special district created by special act that fails to file certain financial information with the state.
 The chair of a county or municipality may convene a public hearing on the issue of
noncompliance concerning any special district it created that fails to file certain financial
information with the state.
 DEO can declare special districts inactive under certain circumstances.

Education for New District Board Members

DEO is authorized to provide, contract for, or assist in conducting education programs, as its budget
permits, for all newly elected or appointed members of district governing bodies. The education
programs must include, but are not limited to, courses on:64
 The code of ethics for public officers and employees;
 Public meetings and public records requirements;
 Public finance; and
 Parliamentary procedure.

Currently, members of special districts are not considered “Elected Municipal Officers” subject to the
annual ethics training requirement found in s. 112.3142, F.S. 65

Special District Meetings, Public Records and Public Notice Requirements

62 Id.
63 Id.
64 S. 189.063(1), F.S.
65 Department of Economic Opportunity, Florida Special District Handbook, (Oct. 2022),https://www.floridajobs.org/docs/default-
source/2015-community-development/community-assistance/sdap/florida-special-district-handbook.pdf?sfvrsn=152e57b0_2 (last
visited Mar. 1, 2023).
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Special districts, along with counties, municipalities, and other governmental agencies, must comply
with Florida’s public meetings requirements, also known as the "Sunshine Law,"66 public records
requirements in Florida’s public records law,67 and the public notice requirements in the Florida laws
that govern legal and official advertisements.68

In addition, special districts must comply with specific meeting requirements in the Uniform Special
District Accountability Act, and certain special districts may need to comply with meeting requirements
in other laws. Meeting requirements under the act require that a district: 69
 Quarterly, semiannually, or annually, prepare a schedule of regular meetings that includes the
date, time, and location of each meeting.
 File the schedule with each local governing authority in which the special district has jurisdiction.
 Publish the schedule in the county or counties in which the special district has jurisdiction.
 For any meeting other than a regular meeting or any recessed and reconvened meeting,
advertise in the county or counties in which the special district has jurisdiction the day, time,
place, and purpose of such meeting at least seven days before the meeting.
 In the event of an emergency, provide reasonable notice in the county or counties in which the
special district has jurisdiction, hold the emergency meeting, and subsequently ratify the
emergency meeting. Do not approve the annual budget at an emergency meeting.

Special District Ethics Laws and Disclosures

Florida’s Code of Ethics was created to help prevent conflicts between public duty and private interests,
and ensure that public sector employees and officers will not abuse their public positions in order to
obtain a disproportionate benefit or misuse their government office for private gain.70 All special district
local officers and special district employees must comply with Florida's ethics laws. 71

The Code of Ethics defines a “local officer” in part to include any appointed member of an independent
special district or other political subdivision of the state.72

The following public officers and employees of a special district must file ethics disclosures: 73
 A person elected to a special district's governing body.
 A person appointed to complete an unexpired term.
 A person appointed to a special district's governing body.
 A person seeking nomination or election to a special district's governing body.
 A special district's chief administrative employee.
 A fire chief of a fire control special district.
 A special district purchasing agent making purchases more than $35,000.

Each January, the Florida Commission on Ethics (Commission) receives updates from all counties,
municipalities, and special districts regarding who must file a Statement of Financial Interests. The
Commission then provides a list of those who must file this form to all county supervisors of elections.
All special district local officers and specified employees must file this form. They may also need to file
additional disclosures, depending upon their position, businesses, or interests.74

66 Ch. 286, F.S.
67 Ch. 119, F.S.
68 Ch. 50, F.S.
69 S. 189.015, F.S.
70 Ch. 112, Part III, F.S., and Article II, Section 8, Fla. Const.
71 Department of Economic Opportunity, Florida Special District Handbook, (Oct. 2022),https://www.floridajobs.org/docs/default-
source/2015-community-development/community-assistance/sdap/florida-special-district-handbook.pdf?sfvrsn=152e57b0_2 (last
visited Mar. 1, 2023).
72 S. 112.3145(1)(a), F.S.
73 S. 112.3144, F.S.
74 Id.
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Any person who does not file this form is subject to automatic fines of $25 for each late day, up to a cap
of $1,500. Modeled after the automatic fine system in place for campaign finance reports, the
Commission can hear appeals and has the power to waive fines under limited circumstances. 75

Any person who fails to file their annual disclosure is subject to automatic complaint proceedings to
determine if the failure to file was willful. If the Commission determines that the person willfully failed to
file their disclosure form, the Commission will enter an order recommending that the officer or
employee be removed from office or employment.76

Special district local officers and employees are prohibited from:77
 Doing business with their special district.
 Entering into a conflicting employment or contractual relationship with any other special district
local officer, employee, their spouse and/or their children.

Certain limited exemptions apply to these prohibitions, such as the following:78
 The business is awarded under a system of sealed competitive bidding.
 The special district local officer has exerted no influence on bid negotiations or specifications .
 Disclosure is made, before or at the time of the submission of the bid, of the special district local
officer's or employee's or his or her spouse's or child's interest and the nature of the intended
business.

A special district local officer must abstain from voting on the following measures: 79
 One that inures to his or her special private gain or loss.
 One that inures to the special gain or loss of a principal (other than a government agency) by
whom he or she is retained.
 One that could result in special private gain or loss to a relative.
 One that could result in special private gain or loss to a business associate.

Gifts

Gifts valued at more than $100 from vendors, lobbyists, or political committees, are prohibited. Special
district local officers and specified employees may not solicit any gift, including food or beverage, from
the following:80
 A political committee.
 A lobbyist who has lobbied that special district local officer's or specified employee's special
district within the past 12 months.
 A partner, firm, employer, or principal of a lobbyist.
 A vendor.

A special district local officer or employee may accept a gift valued between $25 and $100 from a
lobbyist. However, the person giving the gift must report the gift to the Commission and notify the
special district local officer that they will disclose the gift as required. 81

A special district local officer or employee may not directly or indirectly accept a gift worth more than
$100 from a lobbyist. However, they may accept it on behalf of the special district. Then, the special
district local officer or specified employee must promptly transfer the gift to the special district. 82

75 S. 112.3144(8)(f), F.S.
76 S. 112.3144(9), F.S...
77 S. 112.313, F.S...
78 Id.
79 S. 112.3143, F.S.
80 S. 112.3148, F.S.
81 Department of Economic Opportunity, Florida Special District Handbook, (Oct. 2022), https://www.floridajobs.org/docs/default-

source/2015-community-development/community-assistance/sdap/florida-special-district-handbook.pdf?sfvrsn=152e57b0_2 (last
visited Mar. 1, 2023).
82 Id.
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Penalties for Code of Ethics Violations

Non-criminal penalties for code of ethics violations for special district officers and employees include:83
 Impeachment.
 Removal or suspension from office or employment.
 Public censure, reprimand, demotion, or salary reduction.
 A civil penalty up to $10,000.
 Restitution of pecuniary benefits they received.

Non-criminal penalties for candidates seeking election to a special district's governing body: 84
 Disqualification from being on the ballot.
 Public censure or reprimand.
 A civil penalty up to $10,000.

Non-criminal penalties for former special district local officers and employees include:85
 Public censure and reprimand.
 A civil penalty up to $10,000.
 Restitution of pecuniary benefits they received.

Special district officers or employees convicted in a court of law of a specified felony offense involving
their public office or employment is subject to forfeiture of retirement benefits. Examples of such
offenses include the following felonies: embezzlement or theft of public funds, bribery, impeachable
offenses, threatening a public servant and defrauding the public or the special district.86

Violations of the gift law and/or honorarium provisions by a lobbyist may result in:87
 A fine up to $5,000.
 A two-year ban from lobbying, or employing someone to lobby, before the agency of the person
to whom the gift or honorarium was given.

Confidentiality of Records

Current law contains a number of provisions that make certain information held by an economic
development agency, including Space Florida, exempt or confidential and exempt 88 from public records
requirements.89 This includes information regarding plans to locate or relocate a business, trade
secrets, proprietary confidential business information, sales tax registration numbers, and information
held pursuant to an economic incentive program or loan program. Some of the exemptions are
temporary and some are permanent.

Information concerning a corporation’s plans to relocate or expand any of its business activities in the
state is confidential and exempt, as follows: 90
 For 12 months after the date an economic development agency receives a request for
confidentiality or until the information is otherwise disclosed;

83 S. 112.317, F.S.
84 Id.
85 Id.
86 Id.
87 S. 112.3148, F.S.
88 There is a difference between records the Legislature designates as exempt from public record requirements and those the

Legislature deems confidential and exempt. A record classified as exempt from public disclosure may be disclosed under certain
circumstances. See WFTV, Inc. v. The School Board of Seminole, 874 So. 2d 48, 53 (Fla. 5th DCA 2004), review denied 892 So. 2d
1015 (Fla. 2004); City of Riviera Beach v. Barfield, 642 So. 2d 1135 (Fla. 4th DCA 1994); Williams v. City of Minneola, 575 So. 2d
687 (Fla. 5th DCA 1991). If the Legislature designates a record as confidential and exempt from public disclosure, such record may
not be released by the custodian of public records to anyone other than the persons or entities specifically designated in st atute. See
Attorney General Opinion 85-62 (August 1, 1985).
89 See s. 288.075, F.S.
90 S. 288.075(2), F.S.
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 An economic development agency may extend the period of confidentiality for up to 12 months
upon written request by the entity that originally requested confidentiality and upon a finding by
the economic development agency that such entity is still actively considering locating,
relocating, or expanding its business activities in this state. Such a request must be received
prior to the expiration of the original period.
 If a final project order for a signed economic development agreement is issued, then the
information remains confidential and exempt for 180 days after the final project order is issued,
until a date specified in the final project order, or until the information is otherwise disclosed,
whichever occurs first. However, the 180 day timeframe may not extend beyond the original or
extended period.

Proprietary confidential business information is confidential and exempt until the information becomes
publicly available or is no longer treated by the proprietor as confidential.91

Specific sales, employee wage, and tax information associated with the administration of an economic
incentive program for qualified businesses is confidential and exempt for the duration of the incentive
agreement or upon termination of the agreement.92 The following information is protected:
 The percentage of the business’s sales occurring outside this state and for businesses applying
for the qualified defense contractor and space flight business tax refund program under s.
288.1045, F.S., the percentage of the business’s gross receipts derived from Department of
Defense contracts during the five years immediately preceding the date the business’s
application is submitted.
 An individual employee’s personal identifying information that is held as evidence of the
achievement or nonachievement of the wage requirements of the tax refund, tax credit, or
incentive agreement programs or of the job creation requirements of such programs.
 The amount of:
o Taxes on sales, use, and other transactions;
o Corporate income taxes;
o Intangible personal property taxes;
o Insurance premium taxes;
o Excise taxes;
o Ad valorem taxes; or
o State communications services taxes.
 However, an economic development agency may disclose in the annual incentives report
required under s. 288.907, F.S., the aggregate amount of each of these taxes paid by all
businesses participating in each economic incentive program.

The following information held by an economic development agency relating to a specific business
participating in an economic incentive program is no longer confidential or exempt 180 days after a final
project order for an economic incentive agreement is issued, until a date specified in the final project
order, or if the information is otherwise disclosed, whichever occurs first:93
 The name of the qualified business.
 The total number of jobs the business committed to create or retain.
 The total number of jobs created or retained by the business.
 Notwithstanding s. 213.053(2), the amount of tax refunds, tax credits, or incentives awarded to,
claimed by, or, if applicable, refunded to the state by the business.
 The anticipated total annual wages of employees the business committed to hire or retain.

For a business applying for the qualified defense contractor and space flight business tax refund
program under s. 288.1045, F.S., which is based on obtaining a new Department of Defense contract,
the total number of jobs expected and the amount of tax refunds claimed may not be released until the
new Department of Defense contract is awarded.94

91 S. 288.075(4), F.S.
92 Ss. 288.075(6), F.S.
93 S. 288.075(6)(b)1., F.S.
94 S. 288.075(6)(b)2., F.S.
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Trade secrets, federal employer identification numbers, reemployment assistance account numbers,
and Florida sales tax registration numbers are permanently exempt from public records. 95

Information held by an economic development agency pursuant to its administration of a state or
federally funded small business loan program is exempt from inspection by the public. Disclosure of
such information is authorized in an aggregated and anonymized format.96

An employee of an economic development agency who violates these provisions commits a second
degree misdemeanor, punishable by a maximum penalty of 60 days in jail and a $500 fine. 97

Legislative Budget Commission

The Legislative Budget Commission (LBC) is a standing joint committee of the Legislature98 that is
authorized to oversee certain aspects of the implementation of the approved budget for the State of
Florida. The LBC is empowered to ratify certain adjustments to the budget as recommended by the
Governor or the Chief Justice of the Supreme Court. The LBC’s responsibilities include:
 Reviewing and approving or disapproving agency requests to amend original approved
budgets;99
 Reviewing agency spending plans;100
 Reviewing the recommendations of the Technology Review Workgroup regarding information
technology issues;101 and
 Taking other actions related to the fiscal matters of the state, as authorized by law.

The LBC is required to answer budget questions that may arise throughout the year 102 and ensure that
the funding for the executive and judicial branches remains appropriate and sufficient until the
Legislature reconvenes for the following Legislative Session.

There are three levels of LBC oversight for proposed agency actions impacting the implementation of
the state budget: approval, consultation, and notification. Examples of some of the types of proposed
actions that require the LBC’s approval or review include:103
 Visit Florida contracts with a total cost of $750,000 or more.104
 EFI contracts with a total cost of $750,000 or more.105
 Funds awarded under the Quick Action Closing Fund that exceed $5 million. 106
 Funds awarded under the Innovative Incentive Program. 107
 Changes in the amounts appropriated from trust funds in excess of $1 million.108
 The transfer of General Revenue appropriations for operations in the executive branch or
judicial branch in excess of the amount authorized in ss. 216.292(2) and (3), F.S. 109
 The transfer of appropriations in the executive branch or the judicial branch for fixed capital
outlay.110

95 Ss. 288.075(3) and (5), F.S.
96 S. 288.075(7), F.S.
97 Ss. 775.082 and 775.083, F.S.
98 Art. 3, s. 19, Fla. Const., s. 11.90, F.S.
99 S. 216.181(2) F.S.
100 S. 11.90 F.S.
101 S. 216.0446 F.S
102 S. 216.177(1)(b) F.S.
103 Other examples include: ss. 216.011(1), F.S.; 216.181(10)(a), F.S.; 216.292(4)(b), F.S.; 216.292(4)(d), F.S.; 216.216, F.S.;

252.37(2), F.S.; 339.135(6)(c), F.S.; 339.135(7)(g), F.S.; 402.80, F.S.;
104 S. 288.1226, F.S.
105 S. 288.903(7), F.S.
106 S. 288.1088(3)(c)4., F.S.
107 S. 288.1089(7), F.S.
108 S. 216.181(11), F.S.
109 S. 216.292(4)(a), F.S.
110 S. 216.292(4)(c), F.S.
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 The initiation of new programs or changes in current programs in the executive branch or the
judicial branch that are not contemplated by the General Appropriations Act.111
 The transfer of funds from a school district’s class size reduction operating categorical to the
district’s approved fixed capital outlay account for class size reduction.112
 Actions increasing the number of positions authorized by the legislature for executive branch
agencies and judicial branch entities.113

Notice of budget amendments must be provided to the chair and vice chair of the LBC at least 14 days
prior to the action or at least 3 days prior to a release of funds. The chair and vice chair of the LBC or
the presiding officers of the Legislature may void a budget action if notice is provided in writing to the
Governor, for the executive branch, or the Chief Justice, for the judicial branch, that such action
exceeds delegated authority or is contrary to legislative policy and intent. If such notice is given, the
Governor or Chief Justice must void such budget action until the LBC or Legislature addresses the
issue.114

Space Florida Auditor General Report No. 2022-049

In 2021, the State of Florida Auditor General released findings of an operational audit of Space Florida
that focused on cooperative agreements, board duties and governance, and selected administrative
activities.115 The audit disclosed the following findings:
 Space Florida Board committee meetings were not always held in accordance with committee
charter requirements.
 Certain Space Florida entertainment and travel expenses did not appear to be clearly necessary
or reasonable to the performance of Space Florida’s statutory duties or commensurate with the
entertainment and travel expenses authorized by State law.
 Space Florida did not comply with certain requirements of State law regarding public deposits.
 Space Florida contracted with a service organization to provide information technology (IT)
services. However, Space Florida did not take steps to reasonably ensure that service
organization controls relevant to the IT services performed on behalf of Space Florida were
suitably designed and operating effectively.
 Space Florida policies and procedures did not adequately promote the retention of records
related to the sanitization and disposition of surplus computer hard drives.
 Security controls over mobile device utilization need improvement to ensure the confidentiality,
integrity, and availability of Space Florida data and IT resources.
 Space Florida records did not evidence that network user access privileges were timely
disabled for former employees.

The audit also provided recommendations on ways to address each of these findings. Space Florida
responded to the audit by submitting to the Auditor General written statements explaining each of the
findings and a plan for correcting or improving the findings.116

In 2022, the General Appropriations Act implementing bill amended the travel and entertainment
provisions in the Space Florida Act to limit Space Florida's expenditures on entertainment and lodging,
and require Space Florida to submit additional information in its annual report relating to itemized
expenses and information related to corrective actions taken by Space Florida to address the findings
in the audit. These requirements are temporary and are set to expire July 1, 2023.

111 S. 216.241, F.S.
112 S. 1003.03, F.S.
113 S. 216.262(1)(a), F.S.
114 S. 216.177, F.S.
115 State of Florida Auditor General, SPACE FLORIDA Board Duties and Governance and Selected Administrative Activities,

https://flauditor.gov/pages/pdf_files/2022-049.pdf (last visited Mar. 1, 2023).
116 Id.
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DEO Annual Report

DEO is tasked with assisting 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. 117 DEO must also
ensure that the state's goals and policies relating to economic development, workforce development,
community planning and development, and affordable housing are fully integrated with appropriate
implementation strategies.118

The Secretary of DEO is required to serve as the manager for the state with respect to contracts with
EFI and all applicable direct-support organizations. Such contracts may be for multiyear terms and
must include specific performance measures for each year. 119

DEO, with assistance from EFI is required to, 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:120
 Include the identification of problems and a prioritized list of recommendations; and
 Incorporate annual reports of other programs, including:
o Information provided by the Department of Revenue (DOR).
o Information provided by enterprise zone development agencies and an analysis of the
activities and accomplishments of each enterprise zone.
o The Economic Gardening Business Loan Pilot Program and the Economic Gardening
Technical Assistance Pilot Program.
o A detailed report of the performance of the Black Business Loan Program and a
cumulative summary of the quarterly report data.
o The Rural Economic Development Initiative.
o The Florida Unique Abilities Partner Program.
o A detailed report of the performance of the Florida Development Finance Corporation
and a summary of the corporation’s annual report.

Economic Development Programs Evaluation

As directed by the Legislature, the Office of Program Policy Analysis and Government Accountability
(OPPAGA) and the Office of Economic and Demographic Research (EDR) are required to complete
detailed analyses of state economic development programs (analysis) beginning on a certain date and
every three years thereafter. OPPAGA evaluates each program for its effectiveness and value to the
state's taxpayers. EDR evaluates and determines the economic benefits and return-on-investment of
each program.121

Currently, the analysis includes more than 18 economic development programs, including, but not
limited to:
 The Quick Action Closing Fund.122
 Enterprise Zone Program incentives.123
 The New Markets Development Program.124
 VISIT Florida and its programs.125

117 S. 20.60(4), F.S.
118 OPPAGA, Program Summary: Department of Economic Opportunity,

https://oppaga.fl.gov/ProgramSummary/ProgramDetail?programNu mber=6101 (last visited Mar. 11, 2021).
119 S. 20.60(9), F.S.
120 S. 20.60(10), F.S.
121 S. 288.0001, F.S.
122 S. 288.1088, F.S.
123 Ss. 212.08(5) and (15), 212.096, 220.181, and 220.182, F.S.
124 Ss. 288.991-288.9922, F.S.
125 Ss. 288.122, 288.1226, 288.12265, and 288.124, F.S.
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 The Florida Sports Foundation and related programs.126
 The qualified defense contractor and space flight business tax refund program.127
 The tax exemption for semiconductor, defense, or space technology sales. 128
 The Military Base Protection Program.129

Effect of Proposed Changes

The bill includes Space Florida and the Space Florida Act to the list of entities and laws over which
DEO has contract authority, and requires DEO’s annual report to incorporate annual report information
provided by Space Florida under s. 331.3051, F.S., and an analysis of the activities and
accomplishments of Space Florida.

The bill includes Space Florida among the list of economic development programs scheduled to be
reviewed and analyzed by EDR and OPPAGA, beginning January 1, 2024, and every three years
thereafter.

The bill expands the definition of “aerospace” to include:
 Technology intended to be used or designed for flight or re-entry.
 Aircraft facilities.
 Space-based platforms.

The bill expands the definition of “landing area” to include:
 Areas within spaceport territory that are designated by an appropriate body.
 Areas within the spaceport territory that are intended for controlling, assisting, flying, navigating,
piloting, maintenance, or construction of any aerospace vehicle or craft.

The bill requires Space Florida to solicit input from NASA, the DOD, and other political subdivisions that
own facilities within spaceport territory as Space Florida develops the spaceport master plan.

The bill requires Space Florida to work with DEO, instead of EFI, as follows:
 Enter into agreement with DEO to implement the Space Florida Act.
 Cooperate with DEO to develop a plan to retain, expand, attract, and create aerospace industry
entities, public or private, which results in the creation of high-value-added businesses and jobs
in this state.
 Develop a plan with DEO to provide financing assistance to aerospace businesses.

The bill requires Space Florida to carry out its responsibilities for spaceport operations by consulting
regularly with the appropriate federal, state, and local authorities on all aspects of establishing and
operating spaceport infrastructure and related aerospace facilities within the state.

The bill requires Space Florida to conduct the following collaborative measures:
 Solicit input regularly on Space Florida plans and activities from the aerospace industry, private
sector spaceport territory stakeholders, each entity that owns or has ownership interest in a
facility within spaceport territory, and other political subdivisions within spaceport territory.
 Partner with the Board of Governors to foster technological advancement and economic
development for spaceport activities by strengthening higher education programs and
supporting aerospace activities.

126 Ss. 288.1162, 288.11621, 288.1166, 288.1167, 288.1168, 288.1169, and 288.1171, F.S.
127 S. 288.1045, F.S.
128 S. 212.08(5)(j), F.S.
129 S. 288.980, F.S.
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 Partner with the Division of Workforce Services (DWS), CSF, and local workforce development
boards to support initiatives that address the high technology skills and staff resources needed
to better promote the state’s efforts in becoming the nation’s leader in aerospace and space
exploration.
 Partner with the Metropolitan Planning Organization Advisory Council to coordinate and specify
how aerospace planning and programming will be part of the state's cooperative transportation
planning process.

The bill also requires Space Florida, before October 1 of each year, to submit to DEO, for inclusion in
DEO’s annual report, a complete and detailed written report setting forth:
 Its operations and accomplishments during the fiscal year.
 Accomplishments and progress concerning the implementation of the spaceport master plan
and other measurable goals, and any updates to such plan and measurable goals.
 Any other information required by DEO.

The bill requires Space Florida’s annual report to include certain information, including data on the
economic impact of the aerospace industry in the state during the previous year, and:
 The amount and sources of capital investment.
 The number of jobs created and retained.
 Annualized average wages, listed by geographic areas within the state as specified by the
Space Florida Board.

The bill revises the Space Florida Board as follows:
 Separates the Space Florida Board entirely from the EFI board.
 Creates an independent Space Florida Board that includes the Governor, who serves ex officio,
or who may appoint a designee to serve, as the chair and a voting member of the Space Florida
Board, and the following appointed members:
o The Secretary of Transportation or his or her designee.
o Five members appointed by the Governor who must have five years of experience in at
least one of the following areas:
 The aerospace industry, but not currently employed by an entity that is under
contract with Space Florida,.
 An employee or official of a port district or port authority as defined in s.
315.02(2).
 Bond financing.
 Academic experience in aerospace, aviation, or a relevant science.
 As an aircraft facilities manager, a fixed-based operator, or a commercial airport
operator.
o A representative of each of the following entities, who will serve as an ex officio,
nonvoting member of the Space Florida Board, appointed by the Governor:
 Jacksonville Aviation Authority.
 Titusville-Cocoa Airport Authority.

Appointed members are to serve four year staggered terms.

The bill also specifies the following requirements related to the Space Florida Board membership:
 Initial appointments must be made by October 1, 2023.
 Terms end on September 30.
 Any member is eligible for reappointment, except that a member may not serve more than two
4-year terms.
 Vacancies must be filled for the remainder of the unexpired term in the same manner as the
original appointment.
 Appointed members may be removed by the appointing official for cause.
 Absence from three consecutive meetings is cause for removal.
 Space Florida Board members serve without compensation, but are entitled to receive
reimbursement for per diem and travel expenses pursuant to requirements for per diem and
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travel expenses of public officers and employees. Such expenses must be paid out of the funds
of Space Florida.
 The Space Florida Board must meet at least quarterly, upon the call of the chairperson, or at the
request of a majority of the membership.
 A majority of the total number of current voting members constitutes a quorum.
 Official action requires a majority vote of the members present at any meeting at which a
quorum is present.
 Meetings may be held via teleconference or other electronic means.
 The Space Florida Board must conduct education for newly appointed Space Florida Board
members as provided by DEO in accordance with the Uniform Special District Accountability
Act.
 Space Florida may not endorse any candidate for elected public office or contribute moneys to
the campaign of any such candidate.

The bill makes the following travel and entertainment provisions permanent by removing the July 1,
2023 sunset date:
 Limits Space Florida's expenditures on entertainment and lodging; and
 Requires Space Florida to submit additional information in its annual report relating to itemized
expenses.

The bill extends the July 1, 2023 sunset date to July 1, 2024, for the requirement that information
related to corrective actions taken by Space Florida that address the findings in Auditor General Report
No. 2022-049 be included in the Space Florida annual report.

The bill revises Space Florida’s authority to construct, develop, create, and maintain facilities and
services within spaceport territory to:
 Additionally allow Space Florida to own, acquire, equip, extend, improve, and reconstruct its
projects within the geographical limits of the spaceport territory;
 Allow Space Florida to maintain such facilities; and
 Specify that this authority includes spaceport territory located inside the boundaries of any
political subdivision.

The bill revises Space Florida’s power with respect to roads as follows:
 Before proceeding with a proposed project or work activity that is owned by another agency or
jurisdiction, Space Florida is required to consult with the agency or jurisdiction that owns the
road.
 Requires Space Florida to advise DOT of any determination Space Florida makes to construct
or maintain a road or bridge within its territory.
 Requires Space Florida to provide DOT with complete copies of all documents, agreements,
resolutions, contracts, and instruments relating thereto; and, if necessary, request DOT to
conduct such construction or maintenance work, including the acquisition of necessary rights -of-
way, planning, surveying, and actual construction of the project.
 Requires Space Florida to transfer to DOT any funds provided for such construction or
maintenance.
 Authorizes DOT to proceed with such construction or maintenance and to use such funds for
such work in the same manner that DOT is authorized to use the funds otherwise provided by
law for use in construction of roads and bridges.

The bill revises provisions related to Space Florida contracts, as follows:
 Subjects proposed Space Florida contracts with a total cost of $10 million or more to the notice
and review procedures of legislative appropriations planning and budgeting.
 Specifies that if the chair and vice chair of the Legislative Budget Commission or the President
of the Senate and the Speaker of the House of Representatives timely advise Space Florida in
writing that such proposed contract is contrary to legislative policy and intent, Space Florida is
prohibited from executing such proposed contract.

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 Prohibits Space Florida from entering into multiple related contracts to avoid the requirements of
this subsection.

The bill requires Space Florida and the Space Florida Board to take the following steps to ensure that
contracted service organizations that provide services to Space Florida are operating effectively:
 Requires Space Florida, after execution of a contract with a service organization, to make and
obtain independent and periodic assessments of the effectiveness of the executed contract
document, the service organization, and any other providers relevant to the contract, to ensure
that adequate internal controls are in place for complying with the terms and conditions of the
contract, for the validation and receipt of goods and services, and to determine that the
contracted service is cost effective and meets Space Florida's requirements and goals.
 Requires Space Florida to submit a final assessment report to the Space Florida Board and the
Secretary of DEO or his or her designee.
 Requires the Space Florida Board, within 30 days after receipt of the final assessment report, to
submit to DEO a written statement of explanation or rebuttal concerning findings requiring
corrective action, including corrective action to be taken to preclude a recurrence.
 Requires Space Florida, beginning October 1, 2023, and every three years thereafter, to
complete a risk-based compliance assessment of all internal contracts executed by Space
Florida for the preceding three fiscal years, which must include steps to reasonably ensure that
contracted service organizations' controls relevant to services provided are suitably designed
and operating effectively.
o The assessment findings must be submitted to the Space Florida Board, the Secretary
of DEO or his or her designee, the Governor, the President of the Senate, and the
Speaker of the House of Representatives.

The bill specifies that the provisions of this act shall control if the provisions conflict with the provisions
of another act.

B. SECTION DIRECTORY:
Section 1: amends s. 20.60, F.S., relating to DEO; creation; powers and duties.

Section 2: amends s. 288.0001, F.S., relating to economic development programs evaluation.

Section 3: amends s. 331.303, F.S., making changes to definitions.

Section 4: amends s. 331.305, F.S., revising the powers of Space Florida.

Section 5: amends s. 331.3051, F.S., relating to the duties of Space Florida.

Section 6: amends s. 331.3081, F.S., revising the Space Florida Board.

Section 7: amends s. 331.310, F.S., revising the powers and duties of the Space Florida Board.

Section 8: amends s. 331.3101, F.S., revising provisions related to Space Florida travel and
entertainment expenses.

Section 9: amends s. 331.312, F.S., revising provisions related to furnishing facilities and services
within the spaceport territory.

Section 10: amends s. 331.313, F.S., revising provisions related to the power of Space Florida with
respect to roads.

Section 11: amends s. 331.324, F.S., revising provisions related to Space Florida contracts, grants,
and contributions.

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Section 12: amends s. 331.360, F.S., revising provisions relating to the Space Florida spaceport
master plan.

Section 13: provides an effective date of July 1, 2023.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.

D. FISCAL COMMENTS:
The provisions in the bill may allow Space Florida to operate more transparently and efficiently
internally and with its partners and surrounding communities, which may result in a positive fiscal
impact to state and local government, and the private sector.

III. COMMENTS

A. CONSTITUTIONAL ISSUES:

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

2. Other:
None.

B. RULE-MAKING AUTHORITY:
Current law gives the Space Florida Board sufficient rulemaking authority to carry out the purposes of
the Space Florida Act.130

130 S. 331.310(1)(j), F.S.
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C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES

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DATE: 3/14/2023

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House of Representatives Staff Analysis — PCB RRS 23-01 Space Florida, Regulatory Reform & Economic Development Subcommittee (3/14/2023)

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