Bill Text: FL S0364 | 2017 | Regular Session | Comm Sub
Bill Title: Gulf Coast Economic Corridor
Spectrum:
Status: (Introduced - Dead) 2017-05-01 - Laid on Table, companion bill(s) passed, see HB 7077 (Ch. 2017-63), HB 7079 (Ch. 2017-64), SB 2500 (Ch. 2017-70) [S0364 Detail]
Download: Florida-2017-S0364-Comm_Sub.html
Florida Senate - 2017 CS for CS for SB 364 By the Committees on Appropriations; and Commerce and Tourism; and Senators Gainer, Broxson, and Montford 576-03517-17 2017364c2 1 A bill to be entitled 2 An act relating to the Gulf Coast Economic Corridor; 3 amending s. 288.80, F.S.; conforming provisions to 4 changes made by the act; amending s. 288.8012, F.S.; 5 defining and redefining terms; amending s. 288.8013, 6 F.S.; deleting the creation and identification of 7 purposes of the Recovery Fund; requiring a specified 8 percentage of payments made to the state under a 9 specified settlement of litigation related to the 10 Deepwater Horizon oil spill be transferred from the 11 General Revenue Fund to the Triumph Gulf Coast Trust 12 Fund; requiring certain funds to be used for 13 administrative costs; requiring Triumph Gulf Coast, 14 Inc., to ensure that a minimum percentage of funds 15 appropriated for such awards from the trust fund be 16 expended in certain affected counties; providing 17 appropriations; authorizing the transfer of funds in 18 the 2017-2018 fiscal year to be spent in the 2018-2019 19 fiscal year; requiring interest in the trust account 20 to be deposited into the Triumph Gulf Coast Trust 21 Fund; revising provisions related to the investment of 22 funds in the trust account; revising annual reporting 23 requirements; amending s. 288.8014, F.S.; expanding 24 the membership of the board of directors; specifying 25 conditions for appointing additional board members; 26 deleting references to the Recovery Fund; deleting 27 obsolete language; revising conflict of interest 28 restrictions imposed on board members of Triumph Gulf 29 Coast, Inc.; removing the requirement that Triumph 30 Gulf Coast, Inc., retain an independent financial 31 advisor and an economic advisor; revising provisions 32 relating to conflict of interest restrictions imposed 33 on retained staff; amending s. 288.8015, F.S.; 34 conforming a provision to changes made by the act; 35 amending s. 288.8016, F.S.; requiring Triumph Gulf 36 Coast, Inc., to publish on its website specified 37 information before making an award; amending s. 38 288.8017, F.S.; conforming provisions to changes made 39 by the act; revising provisions governing the uses of 40 awards from Triumph Gulf Coast, Inc.; repealing s. 41 377.43, F.S., relating to the disbursement of funds 42 received for damages caused by the Deepwater Horizon 43 oil spill; specifying that certain conflict of 44 interest restrictions imposed on board members of the 45 Triumph Gulf Coast, Inc., apply to members serving 46 after a specified date; providing a directive to the 47 Division of Law Revision and Information; providing an 48 effective date. 49 50 Be It Enacted by the Legislature of the State of Florida: 51 52 Section 1. Section 288.80, Florida Statutes, is amended to 53 read: 54 288.80 Short title—This section and ss. 288.8011-288.8018 55ss.288.8011-288.8017may be cited as the “Gulf Coast Economic 56 Corridor Act.” 57 Section 2. Section 288.8012, Florida Statutes, is amended 58 to read: 59 288.8012 Definitions.—As used in ss. 288.8011-288.8018ss.60288.80-288.8017, the term: 61 (1) “Awardee” means a person, organization, or local 62 government granted an award of funds as authorized in s. 63 288.8017from the Recovery Fundfor a project or program. 64 (2) “Department” means the Department of Economic 65 Opportunity. 66 (3)(2)“Disproportionately affected county” means Bay 67 County, Escambia County, Franklin County, Gulf County, Okaloosa 68 County, Santa Rosa County, Walton County, or Wakulla County. 69 (4) “Public infrastructure” means roads, bridges, seaports, 70 rail transport, traffic signalization, underground and above 71 ground utilities, transmission and storage of fossil fuels and 72 renewable sources; hazardous waste disposal and handling, 73 information storage and distribution, and distribution and 74 maintenance of water supply; and disposal and treatment of 75 wastewater. 76(3)“Earnings” means all the income generated by77investments and interest.78 (5)(4)“Settlement agreement” means the agreement entitled 79 “Settlement Agreement Between the Gulf States and the BP 80 Entities with Respect to Economic and Other Claims Arising from 81 the Deepwater Horizon Incident,” which was entered into on 82 October 5, 2015, in the case styled In re: Oil Spill by the Oil 83 Rig “Deepwater Horizon” in the Gulf of Mexico, on April 20, 84 2010, MDL 2179 in the United States District Court for the 85 Eastern District of Louisiana“Recovery Fund” means a trust86account established by TriumphGulf Coast, Inc., for the benefit87of the disproportionatelyaffected counties. 88 Section 3. Section 288.8013, Florida Statutes, is amended 89 to read: 90 288.8013 Triumph Gulf Coast, Inc.;Recovery Fund;creation; 91 funding; investment.— 92 (1) There is created within the departmentof Economic93Opportunitya nonprofit corporation, to be known as Triumph Gulf 94 Coast, Inc., which shall be registered, incorporated, organized, 95 and operated in compliance with chapter 617, and which is not a 96 unit or entity of state government.Triumph Gulf Coast, Inc.,97may receive, hold, invest, and administer the Recovery Fund in98support of this act.Triumph Gulf Coast, Inc., is a separate 99 budget entity and is not subject to control, supervision, or 100 direction by the departmentof Economic Opportunityin any 101 manner, including, but not limited to, personnel, purchasing, 102 transactions involving real or personal property, and budgetary 103 matters. 104 (2) Seventy-five percent of all payments to the state 105 pursuant to the settlement agreement shall be transferred 106 immediately from the General Revenue Fund to the Triumph Gulf 107 Coast Trust Fund within the department to be allocated by the 108 board of directors of the Triumph Gulf Coast, Inc.Triumph Gulf109Coast,Inc., must create and administer the Recovery Fund for110thebenefit of the disproportionately affected counties. The111principal of the fund shall derive from 75 percent of all funds112recovered by the Attorney General for economic damage to the113state resulting from the Deepwater Horizon disaster, after114payment of reasonable and necessary attorney fees, costs, and115expenses, including such attorney fees, costs, and expenses116pursuant to s. 16.0155.117 (a) Seventy-five percent of the moneys received by the 118 state on or before July 1, 2017, shall be immediately 119 transferred to Triumph Gulf Coast, Inc., and up to 0.75 percent 120 of such moneys may be used to pay administrative costs. Forty 121 percent of the remaining moneys shall be allocated by the board 122 to projects identified in s. 288.8017, and as reviewed and 123 approved by the appropriate board of county commissioners, in 124 the eight disproportionately affected counties, with no county 125 receiving less than 5 percent of the total allocation. Any 126 remaining funds shall be allocated by the board to projects 127 identified in s. 288.8017 in any disproportionately affected 128 county to address impacts of the Deepwater Horizon event. 129 (b) Seventy-five percent of the moneys received by the 130 state after July 1, 2017, pursuant to the settlement agreement 131 shall be deposited into the Triumph Gulf Coast Trust Fund for 132 appropriation by the Legislature. Up to 0.75 percent of such 133 moneys may be used to pay for administrative costs. Thirty-two 134 percent of the remaining funds appropriated shall be allocated 135 by the board to projects identified in s. 288.8017, and as 136 reviewed and approved by the appropriate board of county 137 commissioners, to the eight disproportionately affected 138 counties, with no county receiving less than 4 percent of each 139 settlement distribution to the state. Any remaining funds shall 140 be allocated by the board to projects identified in s. 288.8017. 141 (c) Notwithstanding s. 216.301, and pursuant to s. 216.351, 142 funds transferred under this section to the trust fund for the 143 2017-2018 fiscal year may be expended at any time before the end 144 of the 2018-2019 fiscal year. 145 (3)The Recovery Fund must be maintained as a long-termand146stable source of revenue, which shall decline over a 30-year147period in equal amounts each year.Triumph Gulf Coast, Inc., 148 shall establish a trust account at a federally insured financial 149 institution to hold funds transferred or appropriated to it from 150 the Triumph Gulf Coast Trust Fund and make deposits and 151 payments. Interest earned in the trust account shall be 152 deposited monthly into the Triumph Gulf Coast Trust Fund. 153 Triumph Gulf Coast, Inc., may invest surplus funds in the Local 154 Government Surplus Funds Trust Fund, pursuant to s. 218.407, and 155 interest earned, net of fees, shall be transferred monthly into 156 the Triumph Gulf Coast Trust Fund.Earnings generated by157investments and interest of thefund, plus the amount of158principal available each year, shall beavailable to make awards159pursuant to this act and payadministrative costs. Earnings160shall be accounted for separatelyfrom principal funds set forth161in subsection (2).Administrative costs may not exceed the 162 amounts specifically appropriated for this purpose and mayare163limited to2.25percent of the earnings in a calendar year.164Administrative costsinclude payment ofinvestment fees,travel 165 and per diem expenses of board members, audits, salary or other 166 costs for employed or contracted staff, including required staff 167 under s. 288.8014(9), and other allowable costs. The annual 168 salary for any employee or contracted staff may not exceed 169 $130,000 and associated benefits may not exceed 35 percent of 170 salary.Any funds remaining in theRecovery Fund after 30 years171shall revert to the State Treasury.172(4)Triumph Gulf Coast, Inc., shall invest and reinvestthe173principal of the Recovery Fund in accordance with s.617.2104,174in such a manner not to subject the funds to state orfederal175taxes, and consistent with an investment policystatement176adopted by the corporation.177(a)The board of directors shall formulate an investment178policy governing the investment of the principal of the Recovery179Fund. The policy shall pertain to the types, kinds, or nature of180investment of any of the funds, and any limitations, conditions181or restrictions upon the methods, practices, or procedures for182investment, reinvestments, purchases, sales, or exchange183transactions, provided such policies shall not conflict with nor184be in derogation of any state constitutional provision or law.185The policy shall be formulated with the advice of the financial186advisor in consultation with the State Board of Administration.187(b)Triumph Gulf Coast, Inc., must competitively procure188one or more money managers, under the advice of the financial189advisor in consultation with the State Board of Administration,190to invest the principal of the Recovery Fund. The applicant191manager or managers may not include representatives from the192financial institution housing the trust account for the Recovery193Fund. The applicant manager or managers must present a plan to194invest the Recovery Fund to maximize earnings while prioritizing195the preservation of Recovery Fund principal. Any agreement with196a money manager must be reviewed by Triumph Gulf Coast, Inc.,197for continuance at least every 5 years. Plans should include198investment in technology and growth businesses domiciled in, or199that will be domiciled in, this state or businesses whose200principal address is in this state.201(c)Costs and fees for investment services shall be202deducted from the earnings as administrative costs. Fees for203investment services shall be no greater than 150 basis points.204(d)Annually, Triumph Gulf Coast, Inc., shall cause an205audit to be conducted of the investment of the Recovery Fund by206the independent certified public accountant retained in s.207288.8014. The expense of such audit shall be paid from earnings208for administrative purposes.209 (4)(5)Triumph Gulf Coast, Inc., shall report on June 30 210 and December 30 each year to the Governor, the President of the 211 Senate, and the Speaker of the House of Representatives onthe212financial status of the Recovery Fund and its investments,the 213 established priorities, the project and program selection 214 process, including a list of all submitted projects and programs 215 and reasons for approval or denial, and the status of all 216 approved awards. 217 (5)(6)The Auditor General shall conduct an operational 218 audit ofthe Recovery Fund andTriumph Gulf Coast, Inc., 219 annually. Triumph Gulf Coast, Inc., shall provide to the Auditor 220 General any detail or supplemental data required. 221 Section 4. Subsections (2), (3), (4), (7), and (9) of 222 section 288.8014, Florida Statutes, are amended to read: 223 288.8014 Triumph Gulf Coast, Inc.; organization; board of 224 directors.— 225 (2) Triumph Gulf Coast, Inc., shall initially be governed 226 by a five-member5-memberboard of directors. Each of the 227 Trustees of the State Board of Administration, the President of 228 the Senate, and the Speaker of the House of Representatives 229 shall each appoint one member from the private sector. As of the 230 effective date of this act, the number of board members is 231 increased to seven, with the President of the Senate and the 232 Speaker of the House of Representatives each appointing an 233 additional member from the private sector in one of the four 234 least populous disproportionately affected counties as 235 identified by the United States Census Bureau in its March 2017 236 estimates of county populations, to ensure that two such 237 counties are represented on the board. The board of directors 238 shall annually elect a chairperson from among the board’s 239 members. The chairperson may be removed by a majority vote of 240 the members. His or her successor shall be elected to serve for 241 the balance of the removed chairperson’s term. The chairperson 242 is responsible to ensure records are kept of the proceedings of 243 the board of directors and is the custodian of all books, 244 documents, and papers filed with the board; the minutes of 245 meetings of the board; and the official seal of Triumph Gulf 246 Coast, Inc. 247 (3) Notwithstanding s. 20.052(4)(c), each initial 248 appointment to the board of directors by the Board of Trustees 249 of the State Board of Administration shall serve for a term that 250 ends 4 years after the Legislature appropriates funds to Triumph 251 Gulf Coast, Inc.the Recovery Fund.To achieve staggered terms 252 among the members of the board, each initial appointment to the 253 board of directors by the President of the Senate and the 254 Speaker of the House of Representatives shall serve for a term 255 that ends 5 years after the Legislature appropriates funds to 256 Triumph Gulf Coast, Inc.the Recovery Fund.Thereafter, each 257 member of the board of directors shall serve for a term of 4 258 years. A member is not eligible for reappointment to the board, 259 except, however, any member appointed to fill a vacancy for a 260 term of 2 years or less may be reappointed for an additional 261 term of 4 years.The initial appointments to the board must be262made by November 15, 2013.Vacancies on the board of directors 263 shall be filled by the officer who originally appointed the 264 member. A vacancy that occurs before the scheduled expiration of 265 the term of the member shall be filled for the remainder of the 266 unexpired term. 267 (4) The Legislature determines that it is in the public 268 interest for the members of the board of directors to be subject 269 to the requirements of ss. 112.313, 112.3135, and 112.3143, 270 notwithstanding the fact that the board members are not public 271 officers or employees. For purposes of those sections, the board 272 members shall be considered to be public officers or employees. 273 In addition to the postemployment restrictions of s. 112.313(9), 274 a person appointed to the board of directors must agree to 275 refrain from having any direct interest in any contract, 276 franchise, privilege, project, program, or other benefit arising 277 from an award by Triumph Gulf Coast, Inc., during the term of 278 his or her appointment and for 62years after the termination 279 of such appointment. It is a misdemeanor of the first degree, 280 punishable as provided in s. 775.082 or s. 775.083, for a person 281 to accept appointment to the board of directors in violation of 282 this subsection or to accept a direct interest in any contract, 283 franchise, privilege, project, program, or other benefit granted 284 by Triumph Gulf Coast, Inc., to an awardee within 62years 285 after the termination of his or her service on the board. 286 Further, each member of the board of directors who is not 287 otherwise required to file financial disclosure under s. 8, Art. 288 II of the State Constitution or s. 112.3144 shall file 289 disclosure of financial interests under s. 112.3145. 290 (7) The board of directors shall meet at least quarterly, 291 upon the call of the chairperson or at the request of a majority 292 of the membership, toreview the Recovery Fund,establish and 293 review priorities for economic recovery, diversification, and 294 enhancement of theindisproportionately affected counties, and 295 determine use of fundsthe earningsavailable. A majority of the 296 members of the board of directors constitutes a quorum. Members 297 may not vote by proxy. 298 (9)(a) Triumph Gulf Coast, Inc., is permitted to hire or 299 contract for all staff necessary to the proper execution of its 300 powers and duties to implement this act. The corporation is 301 required to retain: 302 1. An independent certified public accountant licensed in 303 this state pursuant to chapter 473 to inspect the records of and 304 to annually audit the expenditure of fundsthe earnings and305available principal disbursedby Triumph Gulf Coast, Inc. 3062.An independent financial advisor to assist Triumph Gulf307Coast, Inc., in the development and implementation of a308strategic plan consistent with the requirements of this act.3093.An economic advisor who will assist in the award310process, including the development of priorities, allocation311decisions, and the application and process; will assist the312board in determining eligibility of award applications and the313evaluation and scoring of applications; and will assist in the314development of award documentation.315 2.4.A legal advisor with expertise in not-for-profit 316investing andcontractingandwho is a member of The Florida Bar 317 to assist with contracting and carrying out the intent of this 318 act. 319 (b) AllTriumph Gulf Coast, Inc., shall require all320 employees of the corporation shalltocomply with the code of 321 ethics for public employees under part III of chapter 112. 322 Retained staff under paragraph (a) must agree to refrain from 323 having any direct interest in any contract, franchise, 324 privilege, project, program, or other benefit arising from an 325 award of funds by Triumph Gulf Coast, Inc., during the term of 326 his or her appointment and for 62years after the termination 327 of such appointment. 328(c)Retained staff under paragraph (a) shall be available329to consult with the board of directors and shall attend meetings330 of the board of directors. These individuals shall not be331permitted to vote on any matter before the board.332 Section 5. Subsection (2) of section 288.8015, Florida 333 Statutes, is amended to read: 334 288.8015 Board of directors; powers.—In addition to the 335 powers and duties prescribed in chapter 617 and the articles and 336 bylaws adopted in compliance with that chapter, the board of 337 directors may: 338 (2) Make expenditures including any necessary 339 administrative expenditurefrom earningsconsistent with its 340 powers. 341 342 Under no circumstances may the credit of the State of Florida be 343 pledged on behalf of Triumph Gulf Coast, Inc. 344 Section 6. Subsection (4) of section 288.8016, Florida 345 Statutes, is amended to read: 346 288.8016 Triumph Gulf Coast, Inc.; duties.—Triumph Gulf 347 Coast, Inc., shall have the following duties: 348 (4) Operate in a transparent manner, providing public 349 access to information, notice of meetings, awards, and the 350 status of projects and programs. To this end, Triumph Gulf 351 Coast, Inc., shall maintain a website that provides public 352 access to this information. At least 14 calendar days before 353 approving an award pursuant to s. 288.8017, Triumph Gulf Coast, 354 Inc., shall publish on the website a summary of the project or 355 program and indicate its intent to approve the award. 356 Section 7. Section 288.8017, Florida Statutes, is amended 357 to read: 358 288.8017 Awards.— 359 (1) Triumph Gulf Coast, Inc., shall make awards from 360 available fundsearnings and principal derived under s.361288.8013(2)to projects or programs that meet the priorities for 362 economic recovery, diversification, and enhancement of the 363 disproportionately affected counties, notwithstanding s. 377.43. 364 Awards may be provided for: 365 (a) Ad valorem tax rate reduction within disproportionately 366 affected counties; 367 (b) Payment of impact fees adopted pursuant to s. 163.31801 368 and imposed within disproportionately affected counties; 369(c)Administrative funding for economic development370organizations located within the disproportionately affected371counties;372 (c)(d)Local match requirements of s. 288.0655ss.373288.0655, 288.0659, 288.1045, and 288.106for projects in the 374 disproportionately affected counties; 375(e)Economic development projects in thedisproportionately376affected counties;377 (d)(f)Public infrastructure projects for construction, 378 expansion, or maintenance whichthatare shown to enhance 379 economic recovery, diversification, and enhancement of 380development inthe disproportionately affected counties; 381 (e)(g)Grants to local governments in the 382 disproportionately affected counties to establish and maintain 383 equipment and trained personnel for local action plans of 384 response to respond to disasters, such as plans created for the 385 Coastal Impacts Assistance Program; 386 (f)(h)Grants to support programsof excellencethat 387 prepare students for future occupations and careers at K-20 388 institutions that havehomecampuses in the disproportionately 389 affected counties. Eligible programs include those that increase 390 students’ technology skills and knowledge; encourage industry 391 certifications; provide rigorous, alternative pathways for 392 students to meet high school graduation requirements; strengthen 393 career readiness initiatives; fund high-demand programs of 394 emphasis at the bachelor’s and master’s level designated by the 395 Board of Governors; and, similar to or the same as talent 396 retention programs created by the Chancellor of the State 397 University System and the Commission of Education, encourage 398 students with interest or aptitude for science, technology, 399 engineering, mathematics, and medical disciplines to pursue 400 postsecondary education at a state university or a Florida 401 College System institution within the disproportionately 402 affected counties;and403 (g) Grants to support programs that provide participants in 404 the disproportionately affected counties with transferrable, 405 sustainable workforce skills that are not confined to a single 406 employer; and 407(i)Grants to the tourism entity created under s.288.1226408for the purpose of advertising and promoting tourism,Fresh From409Florida, or related content on behalf of one or allof the410disproportionately affected counties.411 (2) Triumph Gulf Coast, Inc., shall establish an 412 application procedure for awards and a scoring process for the 413 selection of projects and programs that have the potential to 414 generate increased economic activity in the disproportionately 415 affected counties, giving priority to projects and programs 416 that: 417 (a) Generate maximum estimated economic benefits, based on 418 tools and models not generally employed by economic input-output 419 analyses, including cost-benefit, return-on-investment, or 420 dynamic scoring techniques to determine how the long-term 421 economic growth potential of the disproportionately affected 422 counties may be enhanced by the investment. 423 (b) Increase household income in the disproportionately 424 affected counties above national average household income. 425(c)Expand high growth industries or establish new high426growth industries in the region.4271.Industries that are supported must have strong growth428potential in the disproportionately affected counties.4292.An industry’s growth potential is defined based on a430detailed review of the current industry trends nationally and431the necessary supporting asset base for that industry in the432disproportionately affected counties region.433 (c)(d)Leverage or further enhance key regional assets, 434 including educational institutions, research facilities, and 435 military bases. 436 (d)(e)Partner with local governments to provide funds, 437 infrastructure, land, or other assistance for the project. 438(f)Have investment commitments from private equity or439private venture capital funds.440(g)Provide or encourage seed stage investments in start-up441companies.442(h)Provide advice and technical assistance to companieson443restructuring existing management, operations, or productionto444attract advantageous business opportunities.445 (e)(i)Benefit the environment in addition to the economy. 446 (f)(j)Provide outcome measuresfor programs of excellence447support, including terms of intent and metrics. 448 (g)(k)Partner with K-20 educational institutions or school 449 districts located within the disproportionately affected 450 counties as of January 1, 2017. 451(l)Partner with convention and visitor bureaus, tourist452development councils, or chambers of commerce located within the453disproportionately affected counties.454 (3) Triumph Gulf Coast, Inc., may make awards as 455 applications are received or may establish application periods 456 for selection. Awards may not be used to finance 100 percent of 457 any project or program. Triumph Gulf Coast, Inc., may require a 458 one-to-one private-sector match or higher for an award, if 459 applicable and deemed prudent by the board of directors. An 460 awardee may not receive all of the fundsearnings oravailable 461principalin any given year. An award may supplement but may not 462 supplant existing funding sources. 463 (4) A contract executed by Triumph Gulf Coast, Inc., with 464 an awardee must include provisions requiring a performance 465 report on the contracted activities, must account for the proper 466 use of funds provided under the contract, and must include 467 provisions for recovery of awards in the event the award was 468 based upon fraudulent information or the awardee is not meeting 469 the performance requirements of the award. Awardees must 470 regularly report to Triumph Gulf Coast, Inc., the expenditure of 471 funds and the status of the project or program on a schedule 472 determined by the corporation. 473 Section 8. Section 377.43, Florida Statutes, is repealed. 474 Section 9. The revision made by this act to s. 288.8014(4) 475 applies only to persons who serve on the board of trustees of 476 Triumph Gulf Coast, Inc., on or after July 1, 2017. 477 Section 10. The Division of Law Revision and Information is 478 directed to replace the phrase “the effective date of this act” 479 where it occurs in this act with the date this act takes effect. 480 Section 11. This act shall take effect upon becoming a law.