Florida 2024 2024 Regular Session

Florida House Bill H1311 Analysis / Analysis

Filed 02/06/2024

                    This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives. 
STORAGE NAME: h1311a.RRS 
DATE: 2/6/2024 
 
HOUSE OF REPRESENTATIVES STAFF ANALYSIS 
 
BILL #: CS/HB 1311    Office of the Blue Economy 
SPONSOR(S): Regulatory Reform & Economic Development Subcommittee, 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 
13 Y, 0 N, As 
CS 
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.  
 
The State University System (SUS) is composed of 12 public universities with the purpose of achieving 
academic excellence through teaching students, advancing research, and providing public service for the 
benefit of Florida’s citizens and their communities and economies. The Board of Governors (BOG) is 
responsible to operate, regulate, control, and be fully responsible for the management of the whole SUS. 
 
 
The bill: 
 Establishes the Office of the Blue Economy (Office) as part of the SUS. 
 Requires the Office to be housed within a state university and administered by the BOG of the SUS. 
 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, promote the state’s blue economy role on national and international platforms, and maintain a 
website on which the Office shall publish information related to its responsibilities. 
 Requires the Office, 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. 
 
The bill provides an effective date of July 1, 2024 
 
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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: h1311a.RRS 	PAGE: 3 
DATE: 2/6/2024 
  
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
 
 
State University System of Florida 
 
The State University System (SUS) is composed of 12 public universities.
9
 The purpose of the SUS is 
to achieve academic excellence through teaching students, advancing research, and providing public 
service for the benefit of Florida’s citizens and their communities and economies.
10
 The Board of 
Governors (BOG) is responsible to operate, regulate, control, and be fully responsible for the 
management of the whole SUS.
11
 
 
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 State University System to promote 
economic development by connecting the state’s research institutions with financial resources. The 
Office is to be housed within a state university and administered by the BOG of the SUS. 
 
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 requires the Office to: 
                                                
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+fl
oridas+blue+economy.pdf (last visited Feb. 2, 2024). 
7
 Id. 
8
 Id. 
9
 State University System of Florida, Chancellor, https://www.flbog.edu/about-us/office-of-the-chancellor/chancellor/ (last visited Feb. 6, 
2024). 
10
 Art. IX, s. 7(a), Fla. Const. 
11
 Art. IX, s. 7(d), Fla. Const.  STORAGE NAME: h1311a.RRS 	PAGE: 4 
DATE: 2/6/2024 
  
 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 Office’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 Office’s 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. 
 Maintain a website on which the Office shall publish information that is required from its 
obligations. 
 
Annual Report 
 
The bill requires the Office, 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. 
 
Effective Date 
 
The bill provides an effective date of July 1, 2024. 
 
B. SECTION DIRECTORY: 
Section 1: Creates s. 288.102, F.S., relating to Office of the Blue Economy; creation; powers and 
duties. 
 
Section 2: Provides an effective date. 
 
II.  FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT 
 
A. FISCAL IMPACT ON STATE GOVERNMENT: 
 
1. Revenues:  STORAGE NAME: h1311a.RRS 	PAGE: 5 
DATE: 2/6/2024 
  
None. 
 
2. Expenditures: 
The bill will have an indeterminate fiscal impact on the state university that houses the Office. It is 
unclear whether current resources will absorb the costs. 
 
 
B. FISCAL IMPACT ON LOCAL GOVERNMENTS: 
 
1. Revenues: 
None. 
 
2. Expenditures: 
None. 
 
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR: 
None. 
 
D. FISCAL COMMENTS: 
None. 
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: 
None. 
 
C. DRAFTING ISSUES OR OTHER COMMENTS: 
None. 
 
IV.  AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES 
On February 6, 2023, the Regulatory Reform & Economic Development Subcommittee adopted an 
amendment and reported the bill favorably as a committee substitute. The amendment: 
 Created the Office of the Blue Economy within the State University System, instead of within the 
Department of Commerce. 
 Required the Office to be administered by the Board of Governors of the State University System. 
 Required the Office to maintain a website on which the Office shall publish information that is 
required from its obligations. 
 Removed the creation of the Marine and Maritime Resources Grant Program. 
 Removed the $1 million appropriation to the Department of Commerce. 
 
This analysis is drafted to the committee substitute as passed by the Regulatory Reform & Economic 
Development Subcommittee.