This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1311.RRS
DATE: 2/4/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1311 Office of the Blue Economy
SPONSOR(S): LaMarca and others
TIED BILLS: IDEN./SIM. BILLS: SB 1754
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development
Subcommittee
Phelps Anstead
2) Infrastructure & Tourism Appropriations
Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
The blue economy, or the ocean economy, is a term used to describe the economic activities associated with the
oceans and seas. Florida has the second longest coastline among US states and territories, which contains natural
resources and infrastructure that represents a large portion of the state’s economy. Recently, it has been found that
in order to support Florida’s coastal natural resources and infrastructure, and mitigate related threats, certain
strategies and actions, such as developing and expanding the resources that support Florida’s blue economy, would
be beneficial.
Currently, the Department of Commerce (Department), assists the Governor in working with the Legislature, state
agencies, business leaders, and economic development professionals to promote consistent economic opportunities
for all Floridians. The Department is the state’s chief agency for business recruitment and expansion and economic
development. The Department includes the Division of Economic Development, Division of Community
Development, Division of Workforce Services, Division of Finance and Administration, Division of Information
Technology, Office of the Secretary, and Office of Economic Accountability and Transparency.
The bill:
Establishes the Office of the Blue Economy (Office) as part of the Department.
Requires the Office, in part, to connect the state's ocean and coastal resources to certain economic
development strategies, survey state universities and colleges on the development of academic research,
collaborate with relevant industries, develop and facilitate academic research and startup funding, and
promote the state’s blue economy role on national and international platforms.
Creates the Marine and Maritime Resources Grant Program within the Office to connect the state’s blue
economy resources to Florida Universities and Colleges.
Requires the Office to review and certify applications for grant funding from state universities and Florida
College System institutions.
Authorizes the Department to:
o Identify projects and solicit applications for projects.
o Administer contracts for projects that are approved and funded.
o Adopt rules to administer the Grant Program.
Requires the Department, by December 30, 2025, and annually thereafter, to report on the economic
benefits of the Office and the development of emerging marine and maritime industries.
Appropriates $1 million in nonrecurring funds from the General Revenue Fund to the Department to
administer contracts funded by the Grant Program.
The bill provides an effective date of July 1, 2024
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DATE: 2/4/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
The Blue Economy
The blue economy, or the ocean economy, is a term used to describe the economic activities
associated with the oceans and seas. Defined as the “sustainable use of ocean resources to benefit
economies, livelihoods and ocean ecosystem health,” the activities of a blue economy typically include
maritime shipping, fishing and aquaculture, coastal tourism, renewable energy, water desalination,
undersea cabling, seabed extractive industries and deep sea mining, marine genetic resources, and
biotechnology.
1
Globally, the blue economy is estimated to be worth over $1.5 trillion per year, provides over 30 million
jobs and supplies certain foods to over three billion people. It is predicted that the ocean economy may
double to $3 trillion by 2030.
2
The US marine economy, including goods and services, contributed approximately $373 billion to the
nation’s gross domestic product in 2018 and grew faster than the nation’s economy as a whole,
according to statistics released by the US Department of Commerce.
3
The sectors making the largest
contributions to the nation’s gross domestic product, include:
Tourism and recreation, including recreational fishing ($143 billion).
National defense and public administration ($124 billion).
Offshore minerals ($49 billion).
Transportation and warehousing ($25 billion).
Living resources, including commercial fishing and aquaculture ($13 billion).
Ship and boat building ($9 billion).
Power generation ($4 billion).
Research and education ($3 billion).
Construction ($2.5 billion).
Professional and technical services ($31 million).
Strategic Plan for Florida’s Oceans and Coasts
Recently, the Florida legislature awarded a grant to the Florida Ocean Alliance
4
to create the strategic
policy plan for Florida’s oceans and coasts (plan).
5
According to the plan, Florida has 8,436 miles of
coastline, the second longest coastline among US states and territories, which contain essential,
valuable, and iconic natural resources and human-built infrastructure. In 2018, Florida’s coastal
counties generated more than $797 billion of economic value, or 77 percent of the state’s more than $1
trillion economy at the time. Direct and indirect use of ocean and coastal resources contributed to $73.9
1
The London School of Economics and Political Science, What is the blue economy?
https://www.lse.ac.uk/granthaminstitute/explainers/what-is-the-role-of-the-blue-economy-in-a-sustainable-future/ (last visited Feb. 2,
2024).
2
Id.
3
National Oceanic and Atmospheric Administration, Marine economy in 2018 grew faster than U.S. overall (June 2, 2020),
https://www.noaa.gov/media-release/marine-economy-in-2018-grew-faster-than-us-overall (last visited Feb. 2, 2024).
4
The Florida Ocean Alliance is a nonpartisan organization dedicated to bringing together the private sector, academia, and nonprofit
research organizations in Florida to protect and enhance Florida’s coastal and ocean resources for continued social and economic
benefits. Florida Ocean Alliance, https://www.floridaoceanalliance.org/ (last visited Feb. 2, 2024).
5
Florida Ocean Alliance, Securing Florida’s Blue Economy: A Strategic Plan for Florida’s Oceans and Coasts Florida Ocean
Alliance, Executive Summary (June 2020),
https://static1.squarespace.com/static/614dece04ec1fe659b8317d5/t/616376221a6d513c75428a1a/1633908258963/2020+Securing+fl
oridas+blue+economy.pdf (last visited Feb. 2, 2024). STORAGE NAME: h1311.RRS PAGE: 3
DATE: 2/4/2024
billion to the state’s economy, and more than one million jobs in Florida were directly and indirectly
created by activities that used ocean and coastal resources.
6
In order to support Florida’s coastal natural resources and infrastructure, and mitigate related threats,
the plan outlines the following strategies and actions:
7
Blue Economy: Developing and expanding the resources that support a major portion of
Florida's economy.
Ocean and coastal resilience: Ensuring the elements of Florida's Blue Economy are more
resilient to the effects of local and global threats.
Human and natural infrastructure: Improving the water, wastewater, stormwater, power
infrastructure, and natural habitats that support Florida’s diverse and valuable living resources.
Implementation, outreach, and financing: Building and sustaining broad support and
partnerships for executing the Plan with accountability and transparency.
According to the strategic plan, a top priority is to create a statewide, public-private partnership under
the Executive Office of the Governor, similar to Space Florida, CareerSource Florida, and other
executive-level state partnerships in order to provide a connected leadership that is critical to the
implementation of the plan.
8
Department of Commerce
In 2023, the Legislature renamed the Department of Economic Opportunity (DEO) the Department of
Commerce (Department), eliminated Enterprise Florida, Inc., and moved all existing duties, functions,
records, contracts, administrative authority and contracts from DEO to the Department.
9
The purpose of the Department is to assist the Governor in working with the Legislature, state
agencies, business leaders, and economic development professionals to promote consistent economic
opportunities for all Floridians. The Department is the state’s chief agency for business recruitment and
expansion and economic development.
10
In part, the Department is required to:
11
Facilitate the direct involvement of the Governor and the Lieutenant Governor in economic
development and workforce development projects designed to create, expand, and retain
businesses in this state.
Recruit new businesses to this state and promote the expansion of existing businesses.
Promote viable, sustainable communities by providing technical assistance and guidance on
growth and development issues, grants, and other assistance to local communities.
Ensure that the state’s goals and policies relating to economic development, workforce
development, community planning and development, and affordable housing are fully integrated
with appropriate implementation strategies.
Manage the activities of public-private partnerships and state agencies in order to avoid
duplication and promote coordinated and consistent implementation of programs in areas
including, but not limited to, tourism; international trade and investment; business recruitment,
creation, retention, and expansion; minority and small business development; defense, space,
and aerospace development; rural community development; and the development and
promotion of professional and amateur sporting events.
6
Florida Ocean Alliance, Securing Florida’s Blue Economy: A Strategic Plan for Florida’s Oceans and Coasts, 1 (June 2020),
https://static1.squarespace.com/static/614dece04ec1fe659b8317d5/t/616376221a6d513c75428a1a/1633908258963/2020+Securing+f
loridas+blue+economy.pdf (last visited Feb. 2, 2024).
7
Id.
8
Id.
9
Ch. 2023-173, Laws of Fla.
10
See s. 20.60, F.S.
11
S. 20.60(4), F.S. STORAGE NAME: h1311.RRS PAGE: 4
DATE: 2/4/2024
Coordinate with state agencies on the processing of state development approvals or permits to
minimize the duplication of information provided by the applicant and the time before approval
or disapproval.
Contract with the Florida Sports Foundation to guide, stimulate, and promote the sports industry
in this state; to promote the participation of residents of this state in amateur athletic
competition; and to promote this state as a host for national and international amateur athletic
competitions.
Encourage and oversee the coordination of international trade development efforts of public
institutions, business associations, economic development councils, and private industry.
Contract with the direct-support organization to assist with coordination of international trade
efforts.
Support Florida’s defense, space, and aerospace industries, including research and
development, and strengthen this state’s existing leadership in defense, space, and aerospace
activity and economic growth.
Assist, promote, and enhance economic opportunities for this state’s minority-owned
businesses and rural and urban communities.
Contract with the Florida Tourism Industry Marketing Corporation to execute tourism promotion
and marketing services, functions, and programs for the state and advise the department on the
development of domestic and international tourism marketing campaigns featuring this state.
Currently, the following divisions and offices are established within the Department:
12
The Division of Economic Development.
The Division of Community Development.
The Division of Workforce Services.
The Division of Finance and Administration.
The Division of Information Technology.
The Office of the Secretary.
The Office of Economic Accountability and Transparency.
Effect of the Bill
Office of the Blue Economy
The bill provides the following Legislative findings:
The Florida Legislature finds that marine and maritime resources play a vital role in the
state. The Legislature highly values the partnership between the state and its universities
and the Florida College System and finds that through this collaboration significant
innovation and investment are driven in targeted industries.
The bill creates the Office of the Blue Economy (Office) within the Department and provides legislative
findings for the vital role marine and maritime resources play in Florida.
The bill defines “blue economy” as the economic uses of marine and maritime resources with a focus
on sustainable practices that benefit the long-term outlook of relevant industry sectors and the
competitive positioning of the state in a global economy.
The bill defines "marine and maritime resources" as ocean and coastal resources, including, but not
limited to, marine and maritime industries such as shipyards, marinas, marine terminals, piers, fishing,
aquaculture, seafood processing, commercial diving, and marine transportation; marine biomedical
research; floating and amphibious housing; tourism; and outdoor recreational activities, including, but
not limited to, boating and industry sectors dependent on such activities.
12
S. 20.60(3)(a), F.S. STORAGE NAME: h1311.RRS PAGE: 5
DATE: 2/4/2024
The bill defines "targeted industry" as any industry identified in the most recent list of target industries
provided to the Governor, the President of the Senate, and the Speaker of the House of
Representatives in accordance with s. 288.005(7), F.S.
The bill requires the Office to:
Support the state's economy by connecting the state's ocean and coastal resources to
economic development strategies that enhance or contribute to the blue economy with a focus
on:
o Research and development,
o Technological innovation,
o Emerging industries,
o Strategic business recruitment,
o Public and private funding opportunities, and
o Workforce training and education.
Survey state universities and Florida College System institutions on the development of
academic research relating to the blue economy across all disciplines, including:
o Encourage collaboration between state universities and Florida College System
institutions with overlapping areas of academic research.
o Publish on the department's website information on such collaboration and the current
research inventory.
Collaborate with relevant industries to identify economic challenges that may be solved through
innovation in the blue economy by commercializing or otherwise providing public access to
academic research and resources.
Develop and facilitate a pipeline of academic research, commercialization, accelerator
programs, and startup funding.
Publish on the Department website reports on the number, growth, and average wages of jobs
included in the blue economy.
o Such reports must identify and address any relevant labor shortages projected by the
Labor Market Estimating Conference pursuant to s. 216.136(7), F.S.
Educate other state and local entities on the interests of the blue economy and how such
entities may positively address environmental issues while simultaneously considering the
economic impact of their policies.
Communicate the state's role as an integral component of the blue economy by promoting the
state on national and international platforms and other appropriate forums as the premier
destination for convening on pertinent subject matters.
Marine and Maritime Resources Grant Program
The bill creates the Marine and Maritime Resources Grant Program (Grant Program) within the Office
by connecting the State’s marine and maritime resources to Florida universities and colleges to
enhance relevant marine and maritime industry sectors.
The bill:
Requires the Office to review and certify applications for grant funding from state universities
and Florida College System institutions.
Authorizes the Office to consult with the:
o Department of Education,
o CareerSource Florida, Inc.,
o Office of Reimagining Education and Career Help, and
o Other relevant agencies, as appropriate.
Requires the Office to provide grant funds to projects that promote:
o Research, development, and technical innovation with the goal of commercialization;
o Strategic business recruitment and economic enhancement in a targeted industry with
the goal of capital investment and high wage job growth; and
o Workforce training and education.
Authorizes the Department to administer contracts for projects approved and funded.
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DATE: 2/4/2024
Contracts and Rules
The bill authorizes the Department to:
Identify projects and solicit applications for projects that meet the requirements of the bill.
Administer contracts for projects approved and funded pursuant to the bill.
Adopt rules to administer the bill.
Annual Report
The bill requires the Department, by December 30, 2025, and each December 30 thereafter, to provide
to the Governor, the President of the Senate, and the Speaker of the House of Representatives a
detailed report demonstrating the economic benefits of the Office and the development of emerging
marine and maritime industries or technologies.
Appropriation
For the 2024-2025 fiscal year, the bill appropriates the sum of $1 million in nonrecurring funds from the
General Revenue Fund to the Department to administer contracts funded by the Grant Program under
s. 288.102, F.S.
Effective Date
The bill provides an effective date of July 1, 2024.
B. SECTION DIRECTORY:
Section 1: Amends s. 20.60, F.S., relating to department of Commerce; creation; powers and
duties.
Section 2: Creates s. 288.102, F.S., relating to Office of the Blue Economy; grant program.
Section 3: Provides an appropriation.
Section 4: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
See Fiscal Comments.
2. Expenditures:
See Fiscal Comments.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR: STORAGE NAME: h1311.RRS PAGE: 7
DATE: 2/4/2024
None.
D. FISCAL COMMENTS:
Creating a new office within a state agency that is required to administer a grant program may likely
create a recurring and nonrecurring indeterminate negative fiscal impact on state funds resulting from
staffing and related funding of the office, the cost of carrying out the duties and requirements of the
office, and the cost of the awarding of grants and other requirements of the grant program.
The bill may have a positive fiscal impact on the public and private entities that are awarded such grant
funds.
For the 2024-2025 fiscal year, the bill appropriates the sum of $1 million in nonrecurring funds from the
General Revenue Fund to the Department to administer contracts funded by the Grant Program
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect counties or municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill authorizes the Department to adopt rules to administer the bill.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES