The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Rules
BILL: SB 7048
INTRODUCER: Military and Veterans Affairs, Space, and Domestic Security Committee
SUBJECT: Space Florida
DATE: April 18, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
Proctor Proctor MS Submitted as Committee Bill
1. Proctor Twogood RC Pre-meeting
I. Summary:
SB 7048 revises provisions governing Space Florida to increase collaboration regarding
spaceport activities, enhance transparency measures regarding spaceport projects, and make
several revisions to the Space Florida Board. In part, the bill:
Creates an independent Space Florida Board separate from the Enterprise Florida, Inc., (EFI)
Board, establishes membership and appointment criteria and term lengths, prohibits
compensation, provides per diem and travel limits, allows electronic meetings, and provides
quorum requirements.
Requires Space Florida to:
o Include additional economic data in the Space Florida annual report.
o Explain certain travel and entertainment expenditures and address recent audit findings.
o Assess contracts for services that exceed $50,000 or are for a period of 12 months or
longer, by including provisions requiring a service auditor report of their effectiveness.
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 the DEO’s annual report to include Space Florida
information.
Requires the Space Florida Board to conduct new member training through the DEO.
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.
REVISED: BILL: SB 7048 Page 2
II. Present 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
, and receives state funding through contract with the DEO.
4
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.
5
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.
6
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.
7
Powers of Space Florida
In furtherance of its duties, Space Florida is given certain powers, including, but not limited to:
8
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.
1
Chapter 2006-60, Laws of Fla.
2
See ss. 331.301 through 331.371, F.S.
3
Section 331.302, F.S.
4
The Department of Economic Opportunity, Space Florida Contract SB23-008, available at
https://facts.fldfs.com/Search/ContractDetail.aspx?AgencyId=400000&ContractId=S0201 (last visited Apr. 3, 2023).
5
Section 331.3011, F.S.
6
Section 331.305, F.S.
7
Space Florida, Space Florida Annual Report 2022, available at https://www.spaceflorida.gov/wp-
content/uploads/2023/01/Space-Florida-FY22-Annual-Operating-Report.pdf (last visited Mar. 29, 2023).
8
Section 331.305, F.S. BILL: SB 7048 Page 3
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.
9
Specifically, Space Florida is required to:
Enter into agreements with the Department of Education (DOE), the Department of
Transportation (DOT), EFI, and CareerSource Florida, Inc.
10
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.
11
Develop, in cooperation with EFI, a plan to provide financing assistance to aerospace
businesses.
12
Carry out its responsibilities for spaceport operations by:
13
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.
14
9
Section 331.3051, F.S.
10
Section 331.3051(2), F.S.
11
Section 331.3051(3), F.S.
12
Section 331.3051(6), F.S.
13
Section 331.3051(7), F.S.
14
Section 331.3051(11), F.S. BILL: SB 7048 Page 4
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.
15
Transportation and Public Utilities Facilities
Space Florida is authorized to:
16
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 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;
17
and
Develop and operate 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 member
18
independent board of directors (Space Florida
Board). The Governor, or the Governor’s designee, is a voting member and serves as the chair.
19
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.
20
The duties of the Space Florida Board include:
21
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.
15
Section 331.310(2)(e), F.S.
16
Sections 331.305(12) and (13), F.S.
17
This must be done consistent with ch. 88-130, Laws of Fla.
18
Section 331.3081, F.S.
19
Id.
20
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. Section 288.901(5)(a)8., F.S.
21
Section 331.310(2), F.S. BILL: SB 7048 Page 5
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:
22
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.
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.
22
Section 331.310(1), F.S. BILL: SB 7048 Page 6
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,
23
Space Florida is required
to adopt rules for travel and entertainment expenses that:
24
Make expenditures by advancement or reimbursement, or a combination thereof, to Space
Florida officers and employees;
Reimburse business clients, guests, and authorized persons;
25
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.
26
The travel and entertainment rules are subject to approval by the Chief Financial Officer (CFO)
before adoption, and are prescribed as follows:
27
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.
An annual report must be made to the Legislature not later than November 30 of each year for
the previous fiscal year that concisely summarizes all travel, entertainment, and incidental
expenses incurred inside and outside of the U.S.
28
23
Section 112.061, F.S.
24
Section 331.3101, F.S.
25
“Authorized person” is 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.
26
Section 331.3101(1), F.S.
27
Section 331.3101(2), F.S.
28
Section 331.3101(3), F.S. BILL: SB 7048 Page 7
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.
29
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
30
and a $500 fine.
31
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.
32
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.
33
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.
34
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.
35
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, and construct,
29
Section 331.3101(4), F.S.
30
Section 775.082(4)(b), F.S.
31
Section 775.083(1)(e), F.S.
32
Section 331.3101(4), F.S.
33
Auditor General, Space Florida Board Duties and Governance and Selected Administrative Activities Report No. 2022-049
(Nov. 2021) available at https://flauditor.gov/pages/pdf_files/2022-049.pdf (last visited Mar. 29, 2023).
34
Section 331.312, F.S.
35
Id. BILL: SB 7048 Page 8
control, and maintain, roads, connections, and extensions that it deems necessary in accordance
with established highway safety standards.
36
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 either coordinate the
desired work or successfully execute an interagency agreement with the owning agency or
jurisdiction.
37
Contracts, Grants, and Contributions
Space Florida is authorized to:
38
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.
39
Space Florida is required to submit the plan to:
40
Any appropriate metropolitan planning organization for review of intermodal impacts.
DOT, and it may be included in 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.
41
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 provisions of the act do not conflict with
the Space Florida Act.
42
The Uniform Special District Accountability Act sets forth general
36
Section 331.313, F.S.
37
Id.
38
Section 331.324, F.S.
39
Section 331.360(3), F.S.
40
Id.
41
Id.
42
Section 331.302, F.S. BILL: SB 7048 Page 9
provisions for all special districts, addressing creation, operation, financial reporting, taxation,
assessments, elections, definitions, compliance with general law, and comprehensive planning.
43
A "special district" is a unit of local government created for a particular purpose, with
jurisdiction to operate within a limited geographic boundary.
44
Special districts are created by
general law,
45
special act,
46
local ordinance,
47
or by rule of the Governor and Cabinet.
48
A special
district has only those powers expressly provided by, or reasonably implied from, the authority
provided in the district’s charter.
49
Space Florida is an “independent special district,” which is a
district that is not a dependent special district
50
and may only be created by legislative
authorization as provided in the Uniform Special District Accountability Act.
51
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 funding from a variety of sources while prohibiting
others. For example, ad valorem tax authority is not mandatory for a special district.
52
Special districts may enter into interlocal agreements with one or more other local governmental
units.
53
Under these agreements, the special district may exercise jointly with other participating
local governments those powers, privileges, or authorities they have in common and each may
exercise those same powers, privileges, or authorities separately.
54
Special District Accountability
The Uniform Special District Accountability Act establishes a Special District Accountability
Program administered by the DEO that provides oversight and accountability measures that
special districts must follow. Some of the duties of the program include:
55
Electronically publishing special district noncompliance status reports from the Department
of Management Services, the Department of Financial Service (DFS), the Division of Bond
Finance of the State Board of Administration (SBA), the Auditor General, and the Joint
Legislative Auditing Committee (JLAC).
Providing technical advisory assistance to special districts.
Helping special districts comply with reporting requirements.
Initiating certain enforcement proceedings for failure to file reports and information.
43
Chapter 189, F.S.
44
See Halifax Hospital Medical Center v. State of Fla., et al., 278 So. 3d 545, 547 (Fla. 2019).
45
Section 189.031(3), F.S.
46
Id.
47
Section 189.02(1), F.S.
48
Section 190.005(1), F.S. See, generally, s. 189.012(6), F.S.
49
Halifax Hosp. Med. Center, supra note at 548.
50
Section 189.012(3), F.S.
51
Section 189.011(1), F.S.
52
Art. VII, s. 9(a), Fla. Const.
53
Section 163.01(2), (3)(b), F.S.
54
Section 163.10(4), F.S.
55
Section 189.064, F.S. BILL: SB 7048 Page 10
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 include:
56
Filing an Annual Financial Report with the 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, for example each
special district created by special act may be reviewed by the Legislature using the process
provided in s. 189.0651, F.S.
57
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.
Therefore, each special district must submit the following to various state and local agencies and
the Legislature, as applicable:
58
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.
56
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. 29, 2023).
57
Section 189.068, F.S.
58
Id. BILL: SB 7048 Page 11
Education for New District Board Members
The 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:
59
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.
60
Special District Meetings, Public Records and Public Notice Requirements
Special districts, along with counties, municipalities, and other governmental agencies, must
comply with Florida’s public meetings requirements, also known as the "Sunshine Law,"
61
public records requirements in Florida’s public records law,
62
and the public notice requirements
in the Florida laws that govern legal and official advertisements.
63
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 require that a district:
64
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 7 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. An annual budget may not be approved at an emergency meeting.
59
Section 189.063(1), F.S.
60
Dep’t 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. 29, 2023).
61
Chapter 286, F.S.
62
Chapter 119, F.S.
63
Chapter 50, F.S.
64
Section 189.015, F.S. BILL: SB 7048 Page 12
Confidentiality of Records
Current law makes certain information held by an economic development agency, including
Space Florida, exempt or confidential and exempt
65
from state public records requirements.
66
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 exemptions are
temporary and some 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:
67
For 12 months after the date an economic development agency receives a request for
confidentiality or until the information is otherwise disclosed.
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 the entity is still actively considering
locating, relocating, or expanding its business activities in this state. The request must be
received before 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.
68
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.
69
The following information is
protected:
The percentage of the business’s sales occurring outside the 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 DOD contracts
during the 5 years immediately preceding the date the business’s application is submitted.
65
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 statute. See Attorney General Opinion 85-62 (Aug. 1, 1985).
66
See s. 288.075, F.S.
67
Section 288.075(2), F.S.
68
Section 288.075(4), F.S.
69
Section 288.075(6), F.S. BILL: SB 7048 Page 13
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 the 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:
70
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 DOD contract, the total
number of jobs expected and the amount of tax refunds claimed may not be released until the
new DOD contract is awarded.
71
Trade secrets, federal employer identification numbers, reemployment assistance account
numbers, and Florida sales tax registration numbers are permanently exempt from public
records.
72
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.
73
70
Section 288.075(6)(b)1., F.S.
71
Section 288.075(6)(b)2., F.S.
72
Sections 288.075(3) and (5), F.S.
73
Section 288.075(7), F.S. BILL: SB 7048 Page 14
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.
74
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.
75
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 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 recommended ways to address each finding. Space Florida explained each finding
and a corrective action or improvement plan for each finding.
76
In 2022, the General Appropriations Act implementing bill further addressed these findings by
amending travel and entertainment provisions in the Space Florida Act to limit expenditures on
entertainment and lodging. These limitations require Space Florida to include additional
information in its annual report relating to itemized expenses identified for corrective action in
the audit. These requirements are temporary and set to expire July 1, 2023.
The DEO Annual Report
The 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.
77
The DEO must also ensure that the state's goals and policies relating to economic
74
Sections 775.082 and 775.083, F.S.
75
Auditor General, Space Florida Board Duties and Governance and Selected Administrative Activities, Report No. 2022-
049, (Nov. 2021), https://flauditor.gov/pages/pdf_files/2022-049.pdf (last visited Mar. 29, 2023).
76
Id.
77
Section 20.60(4), F.S. BILL: SB 7048 Page 15
development, workforce development, community planning and development, and affordable
housing are fully integrated with appropriate implementation strategies.
78
The Secretary of the DEO, who is appointed by the Governor and confirmed by the Senate, is
required to serve as 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.
79
The 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:
80
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.
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 OPPAGA and the EDR are required to complete detailed
analyses of state economic development programs (analysis) beginning on a certain date and
every 3 years thereafter. For each program, OPPAGA evaluates effectiveness and value to the
state's taxpayers, while EDR evaluates and determines the economic benefits and return-on-
investment of each program.
81
Currently, the analysis includes more than 18 economic development programs, including, but
not limited to:
VISIT Florida and its programs.
82
The Florida Sports Foundation and related programs.
83
The tax exemption for semiconductor, defense, or space technology sales.
84
78
OPPAGA, Program Summary: Department of Economic Opportunity,
https://oppaga.fl.gov/ProgramSummary/ProgramDetail?programNumber=6101 (last visited Mar. 29, 2021).
79
Section 20.60(9), F.S.
80
Section 20.60(10), F.S.
81
Section 288.0001, F.S.
82
Sections 288.122, 288.1226, 288.12265, and 288.124, F.S.
83
Sections 288.1162, 288.11621, 288.1166, 288.1167, 288.1168, 288.1169, and 288.1171, F.S.
84
Section 212.08(5)(j), F.S. BILL: SB 7048 Page 16
The Military Base Protection Program.
85
III. Effect of Proposed Changes:
The bill amends s. 20.60, F.S., to add Space Florida to the list of entities and laws over which the
DEO has contract authority, and requires the 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 amends s. 288.0001, F.S., to include Space Florida, the Florida Space Business
Incentives Act (corporate income tax credits for spaceflight projects), and the research and
development tax credit among the list of economic development programs scheduled to be
reviewed and analyzed by EDR and OPPAGA, beginning January 1, 2026, and every 3 years
thereafter.
The bill amends s. 331.303, F.S., to expand the definition of “aerospace” to include:
Technology and industry related to the design, manufacture, maintenance, repair, and
operation of aircraft or any other device intended to be used or designed for flight or reentry.
Aircraft facilities or components thereof, and related equipment, systems, facilities,
simulators, programs, and related activities.
Aviation technologies in air-based, land-based, space-based, and sea-based platforms for
commercial, civil, and defense purposes.
The bill amends s. 331.303, F.S., to expand the definition of “landing area” to include areas
within spaceport territory that are designated by an appropriate body (other than Space Florida)
that are intended for controlling, assisting, flying, navigating, piloting, maintenance, or
construction of any aerospace technology or craft.
The bill amends s. 331.3051, F.S., to require Space Florida to:
Enter into an agreement with the DEO to implement the Space Florida Act.
Work with the DEO to submit by August 15 of each fiscal year, a proposed operating budget
for Space Florida which includes amounts to be expended on incentives, advertising, events,
other operating capital outlay, and salaries and benefits for each employee to the Governor,
the President of the Senate, and the Speaker of the House of Representatives.
Develop a plan in cooperation with the DEO to provide financing assistance to aerospace
businesses.
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.
Partner with the Division of Workforce Services of the DEO, CareerSource, 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.
85
Section 288.980, F.S. BILL: SB 7048 Page 17
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 amends s. 331.3051, F.S., to also require Space Florida, before October 1 of each year,
to submit to the DEO, for inclusion in the 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 the plan and goals.
Data on the economic impact of the aerospace industry in the state during the previous year,
including, but not limited to:
o The amount and sources of capital investment;
o The number of jobs created and retained; and
o Annualized average wages, listed by geographic areas within the state as specified by the
board.
Any other information required by the DEO.
The bill amends s. 331.3051, F.S., to also require Space Florida to provide a copy of the special
district public facilities report required in s. 189.08, F.S., to Space Florida’s property owners,
project owners, and users.
The bill amends s. 331.3081, F.S., to revise the Space Florida Board by separating it from the
EFI board, creating 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:
The Secretary of Transportation or his or her designee.
Four members appointed by the Governor.
One member appointed by the President of the Senate.
One member appointed by the President of the Senate from the members of the Senate, who
shall serve ex officio as a nonvoting member of the board.
One member appointed by the Speaker of the House of Representatives.
One member appointed by the Speaker of the House of Representatives from the members of
the House of Representatives, who shall serve ex officio as a nonvoting member of the board.
A representative of each of the following entities, appointed by the Governor, who shall
serve ex officio as a nonvoting member of the board:
o An airport authority with the capability for horizontal launches, such as the Jacksonville
Aviation Authority or Titusville-Cocoa Airport Authority.
o Port district or port authority, as defined in s. 315.02(2), F.S., operations, or management.
o A spaceport territory, as defined in s. 331.304, F.S., operations, or management.
The bill also specifies that all members of the board who are appointed by the Governor are
subject to confirmation by the Senate. In addition, when making appointments to the board, with
the exception of the ex officio nonvoting member from the Senate and House of Representatives,
the appointing official must: BILL: SB 7048 Page 18
Select an individual to serve who reflects the state's interests in the aerospace sector and
represents the intent, duties, and purpose of Space Florida; or
Select an individual who has at least 5 years of experience in at least one of the following
areas:
o The aerospace industry, including technology, manufacturing, or supply chain fields, and
human space flight. This member may not be currently employed by an entity that is
under contract with Space Florida.
o Bond financing.
o Academic study of aerospace, aviation, or a relevant science.
o Management or operation of aircraft facilities, fixed base operations, or commercial
airport operations.
o Aviation industry technology, manufacturing, or supply chain fields.
o Management or finance of technology or manufacturing startup business or international
business.
Ensure that the appointee is a resident of this state or has a business enterprise in this state.
Appointed members will serve 4-year terms, except that to provide for staggered terms, the
Governor shall initially appoint two members to serve 2-year terms, two members to serve
3-year terms, and one member to serve a 4-year term. Initial appointees of the President of the
Senate and the Speaker of the House of Representatives will serve 4-year terms. All subsequent
appointments shall be for 4-year 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 September 30.
Members appointed to the board of directors of Space Florida as of the effective date of the
bill may continue to serve on the board until October 1, 2023.
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
travel expenses of public officers and employees. Expenses must be paid out of the funds of
Space Florida.
Each member of the board of directors who is not otherwise required to file financial
disclosure pursuant to s. 8, Art. II of the State Constitution or s. 112.3144, F.S., must file
disclosure of financial interests pursuant to s. 112.3145, F.S.
Each member of the board of directors is subject to the standards of conduct in ss.
112.313(1)-(8), (10), (12), and (15); 112.3135; and 112.3143(2), F.S. For purposes of
applying these sections to activities of the members of the board of directors, they are
considered public officers or employees and Space Florida is considered their employing
agency. The exemption set forth in s. 112.313(12), F.S., for doing business with one’s agency BILL: SB 7048 Page 19
and conflicting employment or contractual relationship, for advisory boards applies to the
members of the Space Florida board of directors.
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.
Open meeting and public records requirements of chapter 119 and s. 286.011, F.S., apply to
Space Florida and its board of directors.
The Space Florida Board must conduct education for newly appointed Space Florida Board
members as provided by the DEO in accordance with the Uniform Special District
Accountability Act.
Space Florida may not endorse candidates for elected public office or contribute moneys to
their campaigns.
The bill also provides that each officer or employee of Space Florida who is not otherwise
required to file financial disclosure pursuant to s. 8, Art. II of the State Constitution or s.
112.3144, F.S., must file disclosure of financial interests pursuant to s. 112.3145, F.S. The
officers and employees of Space Florida are subject to the standards of conduct in ss.
112.313(1)-(8), (10), (12), and (15); 112.3135; and 112.3143(2), F.S. For purposes of applying
these sections to activities of the officers and employees, they are considered public officers or
employees and Space Florida is considered their employing agency.
The bill amends s. 331.310, F.S., to require the Space Florida Board to establish appropriate
security controls, including access privileges and other measures to protect the confidentiality,
integrity, and availability of data and resources of Space Florida.
The bill amends s. 331.3101, F.S., to make 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 also 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 amends s. 331.312, F.S., to revise 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 these facilities; and
Specify that this authority includes spaceport territory located inside the boundaries of any
political subdivision.
BILL: SB 7048 Page 20
The bill amends s. 331.313, F.S., to revise Space Florida’s power with respect to roads as
follows:
Requires Space Florida to consult with the agency or jurisdiction that owns the road before
proceeding with a proposed project or work activity.
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 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 construction or
maintenance.
Authorizes DOT to proceed with construction or maintenance and to use funds for the 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 amends s. 331.324, F.S., to revise provisions related to Space Florida contracts, for
services that exceed $50,000 or are for a period of 12 months or longer. Such contracts must
include a service auditor report which provides periodic assessments of the effectiveness of the
executed contract document, the organization, and any other providers relevant to the contract, to
ensure that the service organization maintains adequate internal controls to comply with the
terms and conditions of the contract, to validate and receive goods and services, and to determine
whether the contracted service is cost-effective and meets Space Florida’s requirements and
goals.
The service auditor's final assessment report must be submitted to Space Florida’s board of
directors and the Secretary of the DEO, or his or her designee, and within 30 days after receipt of
the final assessment report, the board must send a written explanation or rebuttal concerning any
findings by the service auditor which require corrective action, including action required to
preclude any recurrence of the findings.
The bill specifies that the provisions of this act shall control if the provisions conflict with
provisions of another act.
The bill takes effect July 1, 2023.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None. BILL: SB 7048 Page 21
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
This bill does not impose, authorize to impose, or raise a state tax or fee. Thus, the
requirements of Art. III, s. 19 of the State Constitution are not applicable.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
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 the private sector.
C. Government Sector Impact:
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.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 20.60, 288.0001,
331.303, 331.305, 331.3051, 331.3081, 331.310, 331.3101, 331.312, 331.313, and 331.324.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None. BILL: SB 7048 Page 22
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.