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: CS/SB 968
INTRODUCER: Rules Committee and Senators Calatayud and Trumbull
SUBJECT: Spaceport Territory
DATE: February 22, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Ingram Proctor MS Favorable
2. Shutes Vickers TR Favorable
3. Ingram Twogood RC Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 968 revises the definition of “spaceport discretionary capacity improvement projects” to
include capacity improvements that enhance space transportation capacity at any spaceport or on
spaceport territory.
In addition, the bill broadens the scope of the strategic space infrastructure investment funding
eligibility and authorizes the Florida Department of Transportation (FDOT), in consultation with
Space Florida, to fund spaceport discretionary capacity improvement projects instead of
restricting eligibility to strategic spaceport launch facilities investment projects. The bill revised
the criteria under which a project is eligible to be funded up to 100 percent.
The bill expands spaceport territory to include certain real property in Miami-Dade County
consisting of property that was formerly included within the boundaries of Homestead Air Force
Base and is included in the Homestead Air Reserve Base or deeded to Miami-Dade County or
the City of Homestead. The bill also expands spaceport territory to include certain real property
in Bay County which is included within the boundaries of Tyndall Air Force Base.
The bill may have an indeterminate likely insignificant fiscal impact due to commercial activities
within the newly designated spaceport territory.
The bill takes effect July 1, 2024.
REVISED: BILL: CS/SB 968 Page 2
II. Present Situation:
Federal Regulations
The Office of Commercial Space Transportation was established in 1984 under the U.S.
Department of Transportation, and in 1995, transferred to the Federal Aviation Administration
(FAA), to regulate and facilitate safe operations of the U.S. commercial space transportation
industry.
1
The Commercial Space Launch Act of 1984, as amended, authorizes the FAA to
establish licensing and regulatory requirements for launch vehicles, launch sites, and reusable
suborbital rockets.
2
FAA’s launch regulations require a license or permit for all commercial
launches taking placed within the U.S. borders as well as for launches being conducted abroad.
In general, the FAA does not license launches by U.S. governmental entities. The FAA has
licensed the operation of FAA approved launch sites in 10 states
3
including Florida.
4
Spaceport Territory in Florida
Section 331.304, F.S., provides that the following property constitutes spaceport territory:
Certain real property in Brevard County which is included within the 1998 boundaries of
Patrick Space Force Base, Cape Canaveral Space Force Station, or John F. Kennedy Space
Center.
Certain real property in Santa Rosa, Okaloosa, Gulf, and Walton Counties which is included
within the 1997 boundaries of Eglin Air Force Base.
Certain real property in Duval County which is included within the boundaries of Cecil
Airport and Cecil Commerce Center.
Certain real property in Brevard County which is included within the boundaries of Space
Coast Regional Airport, Space Coast Regional Airport Industrial Park, and Spaceport
Commerce Park.
Real property within the state which is a spaceport licensed by the FAA, as designated by the
board of directors of Space Florida.
Spaceport
A spaceport is any area of land or water, or any manmade object or facility located therein,
developed by Space Florida, which is intended for public use or for the launching, takeoff, and
landing of spacecraft and aircraft, and includes any associated areas which are used or intended
for public use, for spaceport buildings, or for other spaceport facilities, spaceport projects, or
1
U.S. Dep’t of Transportation, Federal Aviation Administration, Offices, About the Office of Commercial Space
Transportation, available at https://www.faa.gov/about/office_org/headquarters_offices/ast (last visited Jan. 10, 2024).
2
51 U.S.C. ss. 50901-23.
3
The FAA website identifies the following states with one or more FAA licensed spaceports: Alabama, Alaska, California,
Colorado, Florida, Georgia, New Mexico, Oklahoma, Texas, and Virginia available at
https://www.faa.gov/space/spaceports_by_state (last visited Jan. 10, 2024).
4
Federal Aviation Administration, FAQs, Launch Licenses and Launch Sites and Spaceports, available at
https://www.faa.gov/space/additional_information/faq#commercial2 (last visited Jan. 10, 2024). BILL: CS/SB 968 Page 3
rights-of-way.
5
U.S. spaceports play a critical role in the growing global commercial space
transportation industry.
6
Spaceports in Florida
Currently, Florida has two federally owned spaceports and four FAA licensed commercial
spaceports. The Cape Canaveral Space Force Station and the National Aeronautics and Space
Administration’s Kennedy Space Center are owned and operated by the federal government. The
four FAA licensed commercial spaceports in Florida are the Space Florida Launch Complex 46
and Space Florida Launch and Landing Facility, both operated by Space Florida; the Cecil Air
and Space Port, operated by the Jacksonville Aviation Authority; and the Space Coast Regional
Airport, operated by the Titusville-Cocoa Airport Authority.
7
State Investments and Exemptions
Florida Department of Transportation and Space Florida
In 1999, Florida designated space as an official mode of transportation and spaceports as the
associated modal. In accordance with Florida statute, the FDOT is responsible for and provides
oversight to aerospace
8
transportation facilities, spaceports, launch ranges, and other space
transportation facilities, and their related infrastructure.
9
In 2019, the FDOT established a
Spaceport Office, aligning spaceports and space transportation with other modalities such as
roads, rail, airports, and seaports.
10
Space Florida is an independent special district which is
responsible for fostering the growth and development of a sustainable and world-leading
aerospace industry in the state.
11
Space Florida was created to be the single point of contact for
state aerospace-related activities with federal agencies, the military, state agencies, businesses,
and the private sector.
12
The FDOT and Space Florida work closely together to plan and facilitate
space transportation services on spaceport properties throughout the state.
13
5
Section 331.303(17), F.S.
6
U.S. Dep’t of Transportation, Federal Aviation Administration, Spaceports, available at
https://www.faa.gov/space/spaceports (last visited Jan. 10, 2024).
7
U.S. Dep’t of Transportation, Federal Aviation Administration, Spaceports by State, available at
https://www.faa.gov/space/spaceports_by_state (last visited Jan. 10, 2024).
8
Section 331.303(1), F.S., defines aerospace as the 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, including rockets,
missiles, spacecraft, satellites, space vehicles, space stations, space and aircraft facilities or components thereof, and related
equipment, systems, facilities, simulators, programs, and activities, including, but not limited to, the application of aerospace
and aviation technologies in air-based, land-based, space-based, and sea-based platforms for commercial, civil, and defense
purposes.
9
Section 331.360(1) F.S.
10
Florida Dep’t of Transportation, Spaceport Improvement Program, 2023-2024, p. 3, available at
https://www.spaceflorida.gov/wp-content/uploads/2019/03/FDOT-Spaceport-Handbook-Update-2021-Low-Res-210430.pdf
(last visited Feb. 20, 2024).
11
Section 331.302(1), F.S.
12
Section 331.3011(3), F.S.
13
Florida Dep’t of Transportation, supra note 10, at 4. BILL: CS/SB 968 Page 4
Joint Participation Agreement and Spaceport Master Plan
The FDOT may enter into a joint participation agreement with Space Florida in order to
effectuate the provisions of ch. 331, F.S., and may allocate funds for such purposes in its
5-year work program. Space Florida is directed to develop a spaceport master plan for expansion
and modernization of space transportation facilities within spaceport territories as defined in s.
331.303, F.S., which contains recommended projects to meet current and future commercial,
national, and state space transportation requirements. Subsequently, Space Florida submits the
spaceport master plan to the FDOT, and such plan may be included within the department's 5-
year work program of qualifying aerospace discretionary capacity.
14
Each year Space Florida announces a call for projects to further develop Florida’s spaceport
system. Space Florida invites the aerospace industry to submit applications to Space Florida and
the FDOT Spaceport Improvement Program.
15,16
Space Florida uses the qualifying applications
to develop a proposed list of spaceport discretionary capacity improvement projects
17
for
submission to FDOT.
18
Prioritized spaceport projects may be included in the FDOT five-year
work program of transportation improvement projects.
19
Subject to the availability of
appropriated funds, the FDOT may participate in the capital cost of eligible spaceport
discretionary capacity improvement projects. The annual legislative budget request is based on
the proposed funding requested for approved spaceport discretionary capacity improvement
projects.
20
Strategic Space Infrastructure Investment
The solicitation for project applications by Space Florida includes submission for the Strategic
Space Infrastructure Investment program. In consultation with Space Florida, the FDOT is
authorized to fund up to 100 percent of the cost of a strategic spaceport launch support facilities
21
investment project
22
if the following conditions have been met:
14
Section 331.301, F.S.
15
Florida Dep’t of Transportation, Spaceport Improvement Program, 2023-2024, available at
https://www.spaceflorida.gov/wp-content/uploads/2019/03/FDOT-Spaceport-Handbook-Update-2021-Low-Res-210430.pdf
(last visited Feb. 20, 2024).
16
Press Release, Space Florida, Space Florida Announces 2024 Space Transportation Call for Projects (Feb. 13, 2024)
available at https://www.spaceflorida.gov/news/space-florida-announces-2024-space-transportation-call-for-projects-2/
17
Section 331.303(18), F.S., defines spaceport discretionary capacity improvement projects as capacity improvements that
enhance space transportation capacity at spaceports that have had one or more orbital or suborbital flights during the previous
calendar year or have an agreement in writing for installation of one or more regularly scheduled orbital or suborbital flights
upon the commitment of funds for stipulated spaceport capital improvements.
18
Space Florida, Call for Projects, Space Transportation Matching Fund, available at https://www.spaceflorida.gov/call-for-
projects/ (last visited Feb. 21, 2024).
19
Id.
20
Section 331.360(4), F.S.
21
Section 331.303 (11), F.S., defines launch support facilities as facilities that are located at launch sites or launch ranges that
are required to support launch activities, including launch vehicle assembly, launch vehicle operations and control,
communications, and flight safety functions, as well as payload operations, control, and processing.
22
Section 331.303(14), F.S., defines project as any activity associated with any development, improvement, property, launch,
utility, facility, system, works, road, sidewalk, enterprise, service, or convenience, which may include coordination with
federal and state partners or agencies; any rocket, capsule, module, launch facility, assembly facility, operations or control
facility, tracking facility, administrative facility, or any other type of aerospace-related transportation vehicle, station, or
facility; any type of equipment or instrument to be used or useful in connection with any of the foregoing; any type of
intellectual property and intellectual property protection in connection with any of the foregoing including, without BILL: CS/SB 968 Page 5
Important access and on-spaceport and commercial launch facility capacity improvements
are provided;
Capital improvements that strategically position the state to maximize opportunities in
international trade are achieved;
Goals of an integrated intermodal transportation system for the state are achieved; and
Feasibility and availability of matching funds through federal, local, or private partners are
demonstrated.
23
Spaceport - Sales and Use Tax Incentives
The state provides a tax exemption for certain machinery and equipment purchased for a new or
expanding business in a spaceport territory which is engaged in commercial spaceport
activities.
24,25
In accordance with general law and Florida Administrative Code,
26
this exemption
is available for machinery for a new business ordered before the start of productive operations
and received within 12 months after the date the business begins its productive operations, and
for an existing business, the expanding business entity must show a minimum 5 percent increase
in productive output. In order to receive an exemption, the qualifying business entity must file
with the Florida Department of Revenue An Application for Temporary Tax Exemption Permit,
Form DR-1214.
27
Homestead Air Force Base and Homestead Air Reserve Base
Homestead Air Force Base was renamed Homestead Air Reserve Base (HARB) in 2003.
28
HARB is located in southeastern Miami-Dade County, near the southern tip of the Florida
peninsula. HARB is located along U.S. Highway 1, approximately 25 miles south of Miami, 5
miles east of Homestead, and 2 miles west of Biscayne Bay. HARB is comprised of 1,943 acres,
with the surrounding area being largely agricultural but in the process of being rezoned for
residential and commercial purposes. Farther to the east, south, and southeast are vacant parcels
of land. These vacant parcels are either protected (due to easements) or unprotected (private
ownership and could be developed). There are a few commercial plots to the north and northwest
of the installation; some residential areas to the south of the installation; and residential
limitation, any patent, copyright, trademark, and service mark for, among other things, computer software; any water,
wastewater, gas, or electric utility system, plant, or distribution or collection system; any small business incubator initiative,
including any startup aerospace company, and any aerospace business proposing to expand or locate its business in this state,
research and development company, research and development facility, education and workforce training facility, storage
facility, and consulting service; or any tourism initiative, including any space experience attraction, microgravity flight
program, aerospace launch-related activity, and space museum sponsored or promoted by Space Florida.
23
Section 331.371, F.S.
24
Section 212.02(22), F.S., defines spaceport activities as activities directed or sponsored by Space Florida on spaceport
territory pursuant to its powers and responsibilities under the Space Florida Act.
25
Section 212.08(5), F.S.
26
Fla. Admin. Code R. 12A-1.096 (2013).
27
Florida Dep’t of Revenue, General Tax, Sales and Use Tax Incentives, Incentives Related to Machinery and Equipment,
Exemption for Industrial Machinery and Equipment Used by a New or Expanding Business to Increase Productive Output,
available at https://floridarevenue.com/taxes/taxesfees/pages/sales_tax_incent.aspx (last visited Jan. 10, 2024).
28
U.S. Environmental Protection Agency, Homestead Air Force Base - Cleanup Activities, available at
https://cumulis.epa.gov/supercpad/SiteProfiles/index.cfm?fuseaction=second.Cleanup&id=0404746#bkground (last visited
Jan. 11, 2024). BILL: CS/SB 968 Page 6
developments to the west, north, and northwest of the installation. Areas to the southwest of the
installation are being developed for residential and commercial land uses according to Miami-
Dade County Planning and Zoning.
29
Tyndall Air Force Base
Tyndall Air Force Base (TAFB) is located one mile southeast of Panama City, Florida. TAFB
encompasses approximately 29,000 acres on a narrow, 18-mile-long, northwest-southeast
peninsula. Major communities surrounding the installation include Panama City, Lynn Haven,
Springfield, Callaway, and Cedar Grove to the northwest, Panama City Beach to the west, and
Mexico Beach to the southeast.
30
III. Effect of Proposed Changes:
CS/SB 968 amends s. 331.303, F.S., to expand the scope of “spaceport discretionary capacity
improvement projects” to include capacity improvements that enhance space transportation
capacity at any spaceport or on spaceport territory. The bill removes the requirement that a
spaceport must have had at least one orbital flight or suborbital flight within the previous
calendar year or have had an agreement in writing for installation of one or more regularly
scheduled orbital or suborbital flights upon the commitment of funds for stipulated spaceport
capital improvements in order to be eligible to receive state funding for projects in accordance
with the joint participation agreement and Space Florida’s spaceport master plan.
31
The bill amends s. 331.371. F.S., to expand the scope of strategic space infrastructure investment
funding eligibility. The bill authorizes the FDOT, in consultation with Space Florida, to fund
spaceport discretionary capacity improvement projects instead of restricting eligibility to
strategic spaceport launch facilities investment projects. The bill revised the conditions under
which a project may be funded up to 100 percent. The criteria for eligibility are as follows:
Important access and on-spaceport-territory space transportation capacity improvements are
provided;
Capital improvements that strategically position the state to maximize opportunities in
international trade are achieved;
Goals of an integrated intermodal transportation system for the state are achieved; and
Feasibility and availability of matching funds through federal, local, or private partners are
demonstrated.
The bill amends s. 331.304, F.S., to expand spaceport territory to include certain real property in
Miami-Dade County consisting of property that was formerly included within the boundaries of
Homestead Air Force Base and is included in the Homestead Air Reserve Base or deeded to
Miami-Dade County or the City of Homestead. The bill provides that Homestead Air Force Base
refers to and includes federal property that is part of Homestead Air Reserve Base and former
federal property that was previously part of Homestead Air Force Base and, as of July 1, 2024, or
29
Id.
30
U.S. Environmental Protection Agency, Tyndall Air Force Base - Cleanup Activities, available at
https://cumulis.epa.gov/supercpad/SiteProfiles/index.cfm?fuseaction=second.Cleanup&id=0401205#bkground (last visited
Jan. 11, 2024).
31
Section 331.360(4), F.S. BILL: CS/SB 968 Page 7
anytime thereafter, is deeded to Miami-Dade County or the City of Homestead. In addition, the
bill expands spaceport territory to include certain real property in Bay County which is included
within the boundaries of Tyndall Air Force Base.
New and expanding businesses engaged in commercial spaceport activities which are located in
a spaceport territory designated by the bill may be eligible for a tax exemption on the purchase of
certain machinery and equipment.
The bill takes effect July 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
A new or expanding business located within the newly designated spaceport territory
which is engaged in commercial spaceport activities may be eligible for a sales tax
exemption on the purchase of certain machinery and equipment.
C. Government Sector Impact:
The bill may have an indeterminate likely insignificant fiscal impact due to commercial
activities within the newly designated spaceport territory.
BILL: CS/SB 968 Page 8
The bill expands the scope of strategic space infrastructure investment funding eligibility
to include spaceport discretionary capacity improvement projects on spaceport territories.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 331.303, 331.304,
and 331.371.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Rules on February 21, 2024:
Revises the definition of spaceport discretionary capacity improvement projects.
Authorizes the FDOT, in consultation with Space Florida, to fund spaceport
discretionary capacity improvement projects in lieu of strategic spaceport launch
facilities investment projects.
Revises the eligibility criteria by which the FDOT may fund such projects.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.