House of Representatives Staff Analysis: PCS for HB 1209 Rural Economic Development (2023)
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- 2023 3236 Regulatory Reform Economic Development Subcommittee Proposed Committee Bill Anal
Summary
A Florida House of Representatives staff analysis of PCS for HB 1209, Rural Economic Development, sponsored by the Regulatory Reform & Economic Development Subcommittee, dated 3/25/2023. It states that the bill removes match requirements under the Rural Regional Development Grants Program and raises the Rural Infrastructure Fund grant cap from 50 percent to 75 percent of total project cost. It states that certain rural counties may receive a grant covering 100 percent of project cost, and that the Department of Economic Opportunity must prioritize Everglades Restoration Agricultural Community Employment Training Program grants in Rural Areas of Opportunity. The bill provides an effective date of July 1, 2023 and, the analysis states, does not impact state or local revenues or expenditures. Background sections describe present law on the two grant programs and Rural Areas of Opportunity.
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Cite this document
“House of Representatives Staff Analysis: PCS for HB 1209 Rural Economic Development (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-pcs1209-rrs/
, SHA-256 2d72fead18beb57e8be7912fd02f60ff536f548d50200b590ab751443dca8ca5.Full text
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for HB 1209 Rural Economic Development
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 Walsh Anstead
Development Subcommittee
SUMMARY ANALYSIS
Under Florida law, a “rural community,” as the term relates to counties, means a county with a population of
75,000 or fewer, or a county with a population of 125,000 or fewer which is contiguous to a county with a
population of 75,000 or fewer. The Florida Department of Economic Opportunity’s (DEO) Regional Rural
Development Grant Program encourages rural communities to leverage limited resources to develop and
implement strategies to help attract new businesses.
The bill modifies provisions related to rural economic development, including:
Removing the match requirements for grants awarded through the Rural Regional Development Grants
Program.
Increasing the funding cap on Rural Infrastructure Fund grants from 50 percent to 75 percent of the
total infrastructure project cost.
Providing that certain rural counties may receive a grant from the Rural Infrastructure Fund that covers
100 percent of the total infrastructure project cost.
Specifies that DEO, in cooperation with CareerSource Florida, Inc., must prioritize grants under the
Everglades Restoration Agricultural Community Employment Training Program that assist training
programs located in Rural Areas of Opportunity.
The bill provides an effective date of July 1, 2023.
The bill does not impact state or local government revenues or expenditures.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: pcs1209.RRS
DATE: 3/25/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Regional Rural Development Grants Program
The Regional Rural Development Grants Program was established to provide funding, through
matching grants, to build the professional capacity of regionally based economic development
organizations located in rural communities. The concept of building the “professional capacity” of an
economic development organization includes hiring professional staff to develop, deliver, and provide
economic development professional services. Professional services includes technical assistance,
education and leadership development, marketing, and project recruitment.1
Applications submitted to the Department of Economic Opportunity (DEO) for funding through this
program must provide proof:2
Of official commitments of support from each of the units of local government represented by
the regional organization;
That each local government has made a financial or in-kind commitments to the regional
organization;
That the private sector has made financial or in-kind commitment to the regional organization;
That the regional organization is in existence and actively involved in economic development
activities serving the region; and
Of the manner in which the organization coordinates its efforts with those other local and state
organizations.
An organization may receive up to $50,000 a year or $250,000 if located in an RAO.3 Grants must be
matched by an amount of non-state resources equal to 25 percent of the state contribution. The DEO is
authorized to spend up to $750,000 each fiscal year from funds appropriated to the Rural Community
Development Revolving Loan Fund to carry out this program.4
Rural Infrastructure Fund
The Rural Infrastructure Fund is a grant program created to facilitate the planning, preparing, and
financing of infrastructure projects in rural communities. 5 The program provides access to federal and
state infrastructure funding programs, including, but not limited to, those offered by the United States
Departments of Agriculture and Commerce.6 The program funds total infrastructure project grants,
infrastructure feasibility grants, and preclearance review grants.
DEO may award grants for up to 50 percent of the total infrastructure project cost. 7 Projects must be
related to specific job-creation or job-retention opportunities. Additionally, projects may include
improving any inadequate infrastructure that has resulted in regulatory action that prohibits economic or
community growth or reducing the costs to community users of proposed infrastructure improvements
that exceed such costs in comparable communities, and improving the access availability of broadband
Internet service.
1 S. 288.018(1)(b), F.S.
2 S. 288.018(2), F.S.
3 S. 288.018(1)(c), F.S.
4 S. 288.018(4), F.S.
5 See s. 288.0655, F.S.
6 S. 288.0655(2)(b), F.S.
7 Id.
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DATE: 3/25/2023
Eligible uses of funds include improvements to public infrastructure for industrial or commercial sites,
upgrades to or development of public tourism infrastructure, and improvements to broadband Internet
service and access in unserved or underserved rural communities.8 Infrastructure can include public or
public-private partnership facilities, like storm water systems, telecommunication, broadband, roads,
and nature-based tourism.9
The infrastructure feasibility grant provides awards of up to 30 percent of the total project costs for
infrastructure feasibility studies, design and engineering activities, or other infrastructure planning and
preparation activities.10 Maximum awards are dependent on the number of jobs that a business
commits to create and may be up to $300,000 if the project is located in a RAO. The total project
participation grant may be used in conjunction with the infrastructure feasibility grant.
The preclearance review grant provides awards to help a local government participate in expedited
permitting processes through technical assistance in preparing permit applications and local
comprehensive plan amendments.11 Grants may be used for surveys, feasibility studies, and other
activities related to the identification and preclearance review of land use modifications. Grants are
limited to $75,000 and must be matched 50 percent with local funds. However, projects in a RAO may
receive up to $300,000 and must be matched 33 percent with local funds. 12
Grant applications are reviewed and certified by DEO in consultation with Enterprise Florida, Inc., the
Florida Tourism Industry Marketing Corporation, the Department of Environmental Protection, and the
Florida Fish and Wildlife Conservation Commission. 13 Reviews include an evaluation of the economic
benefit of the projects and their long-term viability.
A total of $30 million in funding was made through the Rural Infrastructure Fund for Fiscal Year 2022-
2023. Twenty-five million was available for eligible rural communities statewide and an additional $5
million was available specifically for Florida Panhandle counties. 14
Rural Areas of Opportunity
A rural area of opportunity (RAO) is a rural community,15 or region comprised of rural communities,
designated by the Governor, that has been adversely affected by an extraordinary economic event,
severe or chronic distress, or a natural disaster.16 An area may also be designated as an RAO if it
presents a unique economic development opportunity of regional impact. The designation of an RAO
must be agreed upon by the Department of Economic Opportunity (DEO), as well as the county and
municipal governments to be included in the RAO.17
Based on recommendations of the Rural Economic Development Initiative (REDI),18 the Governor may
designate up to three RAOs by executive order.19 This designation establishes these areas as priority
8 Id.
9 Broadband Internet service must be provided in partnership with one or more dealers of communications services. S.
288.0655(2)(b), F.S.
10 S. 288.0655(2)(c), F.S.
11 S. 288.0655(2)(e), F.S. Expedited permitting is pursuant to s. 403.9739(18), F.S.
12 S. 288.0655(2)(e), F.S.
13 S. 288.0655(3), F.S.
14 Department of Economic Opportunity, Rural Infrastructure Fund, https://floridajobs.org/community-planning-and-
development/rural-community-programs/rural-infrastructure-fund (last visited March 24, 2023).
15 Section 288.0656(2)(e), F.S., defines a “rural community” as is any county with a population of 75,000 or fewer, any
county with a population of 125,000 or fewer that is contiguous to a county with a population of 75,000 or fewer, a
municipality in a county that meets either of the aforementioned criteria, or an unincorporated federal enterprise
community or an incorporated rural city with a population of 25,000 or fewer and an employment base focused on
traditional agricultural or resource-based industries, located in a county not defined as rural, which has at least three or
more of the economic distress factors.
16 S. 288.0656(2)(d), F.S.
17 S. 288.0656(7)(b), F.S.
18 Section 288.0656(1)(a), F.S. REDI was established by the Legislature to encourage and facilitate the location and
expansion of major economic development projects of significant scale in rural communiti es.
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DATE: 3/25/2023
assignments for REDI and allows the Governor, acting through REDI, to waive criteria, requirements, or
similar provisions of any economic development initiative.
Currently, there are three designated RAO areas:
Northwest RAO: Calhoun, Franklin, Gadsden, Gulf, Holmes, Jackson, Liberty, Wakulla, and
Washington counties, and portions of Walton County (the City of Freeport and lands north of the
Choctawhatchee Bay and intercoastal waterway).
South Central RAO: DeSoto, Glades, Hardee, Hendry, Highlands, and Okeechobee counties,
and the cities of Pahokee, Belle Glade, and South Bay in Palm Beach County and the city of
Immokalee in Collier County.
North Central RAO: Baker, Bradford, Columbia, Dixie, Gilchrist, Hamilton, Jefferson, Lafayette,
Levy, Madison, Putnam, Suwannee, Taylor, and Union counties. 20
Fiscally Constrained Counties
Fiscally Constrained Counties are counties entirely within a rural area of opportunity or where a 1 mill
levy would raise no more than $5 million in annual tax revenue. 21 A rural area of opportunity is a rural
community22 or region that has been adversely affected by an extraordinary economic event, severe
distress, natural disaster, or that presents a unique economic development opportunity of regional
impact, as designated by the Governor.23 Florida’s fiscally constrained counties are: Baker, Bradford,
Calhoun, Columbia, Desoto, Dixie, Franklin, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee,
Hendry, Highlands, Holmes, Jackson, Jefferson, Lafayette, Levy, Liberty, Madison, Okeechobee,
Putnam, Suwannee, Taylor, Union, Wakulla, and Washington.24
Everglades Restoration Agricultural Community Employment Training Program
The Everglades Restoration Agricultural Community Employment Training Program (Everglades
Training Program) requires DEO, in cooperation with CareerSource Florida, Inc., to use funds to
provide grants to stimulate and support training and employment programs that seek to match persons
who complete such training programs to nonagricultural employment opportunities in areas of high
agricultural unemployment. The program also provides other training, educational, and information
services necessary to stimulate the creation of jobs in the areas of high agricultural unemployment. 25
Funds may be used for grants for tuition for public or private technical or vocational programs and
matching grants to employers to conduct employer-based training programs, or for the purchase of
equipment to be used for training purposes, the hiring of instructors, or any other purpose directly
associated with the program.26
DEO is prohibited from awarding a grant to any given training program which exceeds 50 percent of the
total cost of the program, unless the training program is located within a RAO, in which case the grant
may exceed 50 percent of the total cost of the program and up to100 percent. 27 Matching contributions
19 S. 288.0656(7)(a), F.S.
20 Department of Economic Opportunity, Rural Areas of Opportunity, https://floridajobs.org/community-planning-and-
development/rural-community-programs/rural-areas-of-opportunity (last visited March 24, 2023). The economic
development organizations for these RAOs are named Opportunity Florida, Florida’s Heartland Regional Economic
Development Initiative, and the North Florida Economic Development Partnership, respectively.
21 S. 218.67(1), F.S.
22 A “rural community” as the term relates to counties means a county with a population of 75,000 or fewer, or a county
with a population of 125,000 or fewer which is contiguous to a county with a population of 75,000 or fewer. See s.
288.0656(1)(e), F.S.
23 S. 288.0656(1)(d), F.S.
24 Florida Department of Revenue, Fiscally Constrained Counties,
https://floridarevenue.com/property/Documents/fcco081210.pdf (last visited Mar. 24, 2023).
25 S. 446.71(1), F.S.
26 S. 446.71(3), F.S.
27 S. 446.71(4), F.S.
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DATE: 3/25/2023
may include in-kind services, including, but not limited to, the provision of training instructors,
equipment, and training facilities.
DEO may grant up to 100 percent of the tuition for a participant who resides, and has resided for at
least three of the last five immediately preceding years, within the Everglades Agricultural Area (EAA) 28
and in counties that provide for water storage and dispersed water storage that are located in RAOs. 29
Programs established in the EAA must include opportunities to obtain the qualifications and skills
necessary for jobs related to federal and state restoration projects, the Airglades Airport in Hendry
County, or an inland port in Palm Beach County, or other industries with verifiable, demonstrated
interest in operating within the EAA, as well as in counties that provide for water storage and dispersed
water storage that are located in RAOs.30
In 2022, the Legislature awarded more than $700,000 to the program. 31
Effect of the Bill
The bill removes the match requirements for grants awarded through the Rural Regional Development
Grants Program. Accordingly, the bill removes the requirements that when awarding these grants, DEO
consider whether each local government has made a financial or in-kind commitment to the regional
organization, and whether the private sector has made financial or in-kind commitments to the regional
organization.
The bill increases the funding cap on Rural Infrastructure Fund grants from 50 percent to 75 percent of
the total infrastructure project cost. Under the bill, a rural community or rural area of opportunity located
in a fiscally constrained county may receive a grant that covers 100 percent of the total infrastructure
project cost. The bill eliminates a requirement capping grants for infrastructure feasibility studies,
design and engineering activities, or other infrastructure planning and preparation activities at 30
percent of the total project costs.
The bill also deletes a cross reference in order to align a section of law relating to awards from Triumph
Gulf Coast, Inc.,32 with statutory changes made by the bill.
The bill specifies that DEO, in cooperation with CareerSource Florida, Inc., must prioritize using
program funds from the Everglades Training Program to provide employer-based grants to training
programs located in RAOs that provide for water storage and dispersed water storage as part of the
Everglades restoration efforts.
The Everglades Training Program is required to award grants with priority given to employer-based
training programs. However, grants may not be awarded to an employer-based training program if the
grant exceeds 50 percent of the total cost of the program except that if the employer-based training
program is in a RAO, then the DEO may grant an award up to 100 percent of the program costs.
28 The Everglades Agricultural Area is an approximately 1,160 square-mile area south of Lake Okeechobee of productive
agricultural land. See s. 373.4592(15), F.S., for the property description. See also Lake Okeechobee Business Alliance,
The Everglades Agricultural Area, http://www.lakeoalliance.org/everglades-agricultural-
area#:~:text=The%20Everglades%20E verglades%20Agricultural%20Area, vibrant%20and% 20sustianable%20local%20ec
onomies. (last visited March 24, 2023).
29 S. 446.71(6), F.S.
30 S. 446.71(7), F.S.
31 Department of Economic Opportunity, DEO Press Releases, Governor DeSantis Awards More Than $700,000 for
Work force Training in Everglades Agricultural Communities, https://www.floridajobs.org/news-center/ DEO-
Press/2022/04/18/governor-desantis-awards-more-than-$700-000-for-workforce-training-in-everglades-agricultural-
communities (last visited March 24, 2023).
32 Section 288.8017(1), F.S., provides that Triumph Gulf Coast, Inc., shall make awards from available funds to projects or
programs that meet the priorities for economic recovery, diversification, and enhancement of the disproportionately
affected counties.
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DATE: 3/25/2023
Program funds provided to employer-based training programs may be used for the purchase of
equipment to be used for training, hiring, or any other purpose related to the program.
Under the bill, DEO must set aside up to 50 percent of the funds related to the Everglades Training
Program for employer-based training programs for the first six months of each fiscal year. Any unused
funds may be used for tuition. DEO must include the allocation of funds in the notice of grant
opportunities.
The bill provides that in the event of a conflict with any of the provisions of House Bill 5, 2023 regular
session, or similar legislation, the provisions of House Bill 5, 2023 regular session, or similar legislation,
will control.
The bill provides an effective date of July 1, 2023.
B. SECTION DIRECTORY:
Section 1: Amends s. 288.018, F.S., relating to the Regional Rural Development Grants Program.
Section 2: Amends s. 288.0655, F.S., relating to the Rural Infrastructure Fund.
Section 3: Amends s. 288.8017, F.S., relating to Triumph Gulf Coast, Inc.
Section 4: Amends s. 446.71, F.S., relating to the Everglades Restoration Agricultural Community
Employment Training Program.
Section 5: Provides implementation directions based on certain conflicts.
Section 6: 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:
The bill could increase private sector investment in rural areas.
D. FISCAL COMMENTS:
None.
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DATE: 3/25/2023
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:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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DATE: 3/25/2023
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