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 Commerce and Tourism
BILL: CS/SB 1264
INTRODUCER: Commerce and Tourism Committee and Senator Collins
SUBJECT: Rural and Urban Business Enterprises
DATE: March 31, 2025
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Renner McKay CM Fav/CS
2. FT
3. ATD
4. RC
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 1264 makes several changes relating to business enterprises. Specifically, the bill:
• Repeals and replaces statutory references to minority business enterprises with “certified
rural or urban business enterprises,” which are defined as businesses located in a defined
geographic area where either the per capita income in the area is less than 80% of Florida’s
per capita income or the unemployment rate in the area is greater than the unemployment rate
for Florida by more than 1% over the previous 24 months.
• Repeals regional planning councils and allows local governments to enter into agreements to
form regional planning entities.
• Includes business development in rural or urban areas as one of the programs the Department
of Commerce (department) must implement.
• Revises the department’s Division of Economic Development's (division) responsibilities to
require the division to establish the Office of Secure Florida, which is responsible for
administering and enforcing E-Verify, employment authorization compliance, and the
prohibition against the purchase and registration of real property in Florida by foreign
principals.
• Revises the information required in the department’s annual incentives report to include a
description of trends relating to business interest in and usage of the various incentives and
the number of small businesses and businesses in rural or urban areas receiving incentives.
• Creates the Research, Innovation, Science, and Engineering (RISE) Investment Tax Credit
Program within the department to increase venture capital investment in Florida.
REVISED: BILL: CS/SB 1264 Page 2
• Revises the eligibility requirements for the Law Enforcement Recruitment Bonus Payment
Program for newly employed law enforcement officers by removing the requirement that the
officer maintain continuous full-time employment or at least two years from the date on
which certification was obtained, extends the break in service from 15 calendar days to 180
days, and specifies that any break in service will not count toward satisfying the 2-year full-
time employment requirement. The bill also deletes the expiration date of the program.
• Repeals the expiration of the sales tax exemption for certain data centers on June 30, 2027.
• Requires the Department of Emergency Management’s statewide emergency shelter plan to
identify the general location and square footage of special needs shelters annually through
2030. The bill also provides that state funds must be maximized and targeted to regional
planning council regions as those regions existed on January 1, 2025.
• Provides an exemption from land being reverted to the Board of Trustees if land conveyances
are at less than the appraised value for federal government agencies, including the
Department of Defense, the Army, the Navy, the Air Force, and the U.S. Coast Guard, if the
primary purpose of remaining as a military installation buffer continues, even though the
specific military purpose, mission, and function on the conveyed land is modified or changes
from that which was present or proposed at the time of the conveyance.
• Renames the Office of Supplier Diversity to the Office of Supplier Development under the
Department of Management Services (DMS).
• Renames the Florida Advisory Council on Small and Minority Business Development to the
Florida Advisory Council on Small, Rural, and Urban Business Development under the
DMS.
• Specifies that Space Florida is not an agency under s. 287.055, F.S., for purposes of its ability
to bid and contract in professional or construction services, or both, under an arrangement
with a person under certain circumstances.
• Revises the definition of “managerial employees” to include those who have a significant and
specific role executing statewide business and economic development projects in support of
business recruitment, retention, and expansion, which has the effect of classifying such
employees as Selected Exempt Service.
The bill has an indeterminate fiscal impact on state and local government. See Section V. Fiscal
Impact Statement.
The bill takes effect July 1, 2025.
II. Present Situation:
The present situation for each issue is described below in Section III, Effect of Proposed
Changes.
III. Effect of Proposed Changes:
Disadvantaged, Small, and Minority Business Enterprises
Present Situation
Chapters 287 and 288, F.S., sets forth Florida’s statutory scheme for small and minority owned
business assistance. A “small business” is defined as an independently owned and operated BILL: CS/SB 1264 Page 3
business that employs 200 or fewer permanent full-time employees, has a net worth of not more
than $5 million. A “minority business enterprise” (MBE) is defined as a “small business” which
is domiciled in Florida and is at least 51% owned by minority persons. A “minority person”
means a lawful, permanent resident of Florida who is an African American, a Hispanic
American, an Asian American, a Native American, or an American woman.
1
An “ombudsman”
is an office or individual whose responsibilities include coordinating with the Office of Supplier
Diversity for the interests of and providing assistance to small and minority business enterprises
in dealing with governmental agencies.
2
Florida Minority Business Loan Mobilization Program
The Florida Minority Business Loan Mobilization Program, created in s. 288.706, F.S., promotes
the development of minority business enterprises, increases their ability to compete for state
contracts, and sustains their economic growth in this state. The program aims to assist minority
business enterprises by facilitating working capital loans to minority business enterprises that are
vendors on state agency contracts. The Department of Management Services administers the
program.
Black Business Loan Program
The Black Business Loan Program is established by s. 288.7102, F.S., under the department,
which must annually certify eligible recipients and subsequently disburse funds appropriated by
the Legislature, through such eligible recipients, to black business enterprises that cannot obtain
capital through conventional lending institutions but that could otherwise compete successfully
in the private sector. The program received $2.25 million in Fiscal Year 2024 from the State
Economic Enhancement and Development Trust Fund.
3
Office of Supplier Diversity
The Office of Supplier Diversity, now renamed as the Office of Supplier Development (Office),
4
operates within the DMS. The Office assists Florida small businesses, including MBEs and
women—and veteran-owned businesses, in becoming suppliers of commodities, services, and
construction to the state government.
5
In addition to other statutory powers and functions, the
Office has the duty to adopt rules to determine what constitutes a “good faith effort” to meet
minority business enterprise procurement goals, create a certification program for MBEs, and
monitor agencies’ compliance with procurement goals.
6
1
Section 288.703, F.S.
2
Section 288.703(5), F.S.
3
HB 5001 General Appropriations Act (2024), Line 2335, available at
https://www.flhouse.gov/Sections/Documents/loaddoc.aspx?FileName=CRA_.pdf&DocumentType=Amendments&BillNum
ber=5001&Session=2024 (last visited March 28, 2025).
4
See Department of Management Services, Office of Supplier Development, available at
https://www.dms.myflorida.com/agency_administration/office_of_supplier_diversity_osd (last visited Mar. 28, 2025).
5
8 FLA. PRAC., CONSTR. LAW MANUAL s. 5:22 Minority and disadvantaged business enterprise requirements (2023-2024
ed.). For powers and duties of the Office, see s. 287.09451, F.S.
6
Section 287.09451(4), F.S. BILL: CS/SB 1264 Page 4
One of the duties of the Office is to develop procedures that an agency can use to identify
commodities, contractual services, architectural and engineering services, and construction
contracts that minority business enterprises could provide. Each agency is encouraged to spend
21 percent of the money on construction contracts, 25 percent on architectural and engineering
contracts, 24 percent on commodities, and 50.5 percent on contractual services during the
previous fiscal year. In the event of budget reductions, base amounts may be adjusted as
follows:
7
• Construction contracts – 4 percent for black Americans, 6 percent for Hispanic Americans,
and 11 percent for American women.
• Architectural and engineering contracts – 9 percent for Hispanic Americans, 1 percent for
Asian Americans, and 15 percent for American women.
• Commodities – 2 percent for black Americans, 4 percent for Hispanic Americans, 0.5 percent
for Asian Americans, 0.5 percent for Native Americans, and 17 percent for American
women.
• Contractual services- 6 percent for black Americans, 7 percent for Hispanic Americans, 1
percent for Asian Americans, 0.5 percent for Native Americans, and 36 percent for American
women.
These spending goals were challenged in court as gender and racial classifications that
impermissibly violated the Equal Protection Clause of the U.S. Constitution. A U.S. District
Court found that s. 287.09451, F.S., et seq., were not narrowly tailored to serve a compelling
governmental interest, violated the Equal Protection Clause of the Fourteenth Amendment, and
were unconstitutional.
8
Florida Advisory Council on Small and Minority Business Development
The Florida Advisory Council on Small and Minority Business Development assists the
Secretary of Department of Management Services with minority businesses and economic and
business development.
9
The council's powers and duties include, but are not limited to, studying
the ability of financial markets and institutions to meet small business credit needs, determining
the impact of government demands on credit for small businesses, and requiring a state economic
development comprehensive plan as it relates to small minority businesses.
10
Effect of Proposed Changes
The bill repeals or amends the following statutes related to minority business enterprises:
Section 1 repeals s. 24.113, F.S., relating to minority participation in the sale of lottery tickets.
Section 15 repeals s. 287.0931, F.S., relating to participation in bond underwriting for minority
business enterprises.
Section 16 repeals s. 288.12266, F.S., relating to the Targeted Marketing Assistance Program.
7
Section 287.09451(4)(n), F.S.
8
Florida A.G.C. Council v. Florida, 303 F. Supp. 2d 1307, 1316 (N.D. Fla. 2004).
9
Section 287.0947(1), F.S.
10
Section 287.0947(5), F.S. BILL: CS/SB 1264 Page 5
Section 17 repeals s. 288.124, F.S., relating to VISIT Florida’s convention grants program, and
section 79 amends s. 288.0001, F.S., relating to Economic Development Programs Evaluations,
to remove the grants program from the evaluation schedule.
Section 18 repeals s.288.706, F.S., relating to the Florida Minority Business Loan Mobilization
Program.
Section 19 repeals s. 288.7094, F.S., relating to Black business investment corporations.
Section 20 repeals s. 288.7102, F.S., relating to the Black Business Loan Program.
Section 21 repeals s. 288.71025, F.S., relating to prohibited acts and penalties under the Small
and Minority Business Assistance Act.
Section 22 repeals s. 288.7103, F.S., relating to the eligibility requirements for loans, loan
guarantees, or investments under the Small and Minority Business Assistance Act.
Section 23 repeals s. 288.714, F.S., which applies to the quarterly and annual reports required
under the Black Business Loan Program.
Section 24 repeals s. 331.351, F.S., relating to participation by women, minorities, and socially
and economically disadvantaged business enterprises.
Section 30 amends s. 287.012, F.S., relating to procurement of personal property and services
definitions, to delete the definition of a minority business enterprise.
Section 32 amends s. 287.09451, F.S., to rename the Office of Supplier Diversity the Office of
Supplier Development. The bill specifies that the office's purpose and duties are to assist rural or
urban business enterprises rather than minority ones. It also removes the provision encouraging
agencies to spend certain percentages of contract money with specific minority business
enterprises.
Section 33 amends s. 287.0947, F.S., to rename the Florida Advisory Council on Small and
Minority Business Development the Florida Advisory Council on Small, Rural, and Urban
Business Development. The bill revises the council’s powers and duties to assess the
implementation of requiring a state economic development comprehensive plan as it relates to
small and certified rural or urban business enterprises.
Section 40 amends s. 288.703, F.S., to delete definitions relating to certified minority business
enterprises and minority business enterprises. The bill revises the definition of an ombudsman to
change the Office of Supplier Diversity to the Office of Supplier Development and provide that
the office coordinate with individuals in assisting rural or urban business enterprises rather than
minority business enterprises.
The bill defines a “certified rural or urban business enterprise” as a business located in a defined
geographic area within Florida where one of the following conditions has been documented in BILL: CS/SB 1264 Page 6
the most recent census conducted by the Bureau of the Census of the U.S. Department of
Commerce:
• Per capita income in the area is less than 80 percent of Florida’s per capita income.
• The unemployment rate in the area has been greater than the unemployment rate for Florida
by more than 1 percent over the previous 24 months from the time the comparison is made.
Sections 31, 34, 36-42, 44, 47, 51, 69, 71, 72, 75-78, 80, 82, 97, 109, 136, 138-141 amend
sections 212.096, 287.042, 287.09431, 288.001, 288.1167, 288.1229, 288.7015, 288.702,
288.705, 288.776, 290.0056, 331.351, 17.11, 255.101, 255.102, 287.055, 287.057, 287.0943,
288.7031, 290.004, 376.3072, 381.986, 473.3065, 625.3255, 657.042, and 658.67, F.S, to make
conforming and non-substantive changes relating to the repeal of the terms “minority business
enterprises” and “minority persons” and replacing those terms with “rural or urban business
enterprises.”
Florida Regional Planning Councils
Present Situation:
The Florida Legislature passed the Florida Regional Planning Council Act in 1980.
11
The
Legislature found that “the problems of growth and development often transcend the boundaries
of individual units of local general-purpose government”
12
and that “there is a need for regional
planning agencies to assist local governments to resolve their common problems, engage in
areawide comprehensive and functional planning, administer certain federal and state grants-in-
aid, and provide a regional focus in regard to multiple programs undertaken on an areawide
basis.
13
The state has 10 regional planning councils (RPCs), each functioning as an association of that
district’s constituent local governments: West Florida, Apalachee, North Central, Northeast, East
Central, Central, Tampa Bay, Southwest, Treasure Coast, and South.
14
Current responsibilities of RPCs include, but are not limited to, the following:
• Comprehensive Regional Planning
o Strategic Regional Policy Plans: develop long-term plans addressing
transportation, housing, emergency response, economic development, and
environmental protection.
15
o Growth Management: Review and coordinate local government comprehensive
plans to ensure consistency with regional and state objectives.
16
• Economic Development
o Assist local governments with activities designed to promote and facilitate
economic development.
17
11
Sections 186.501-186.513, F.S.
12
Section 186.502(a), F.S.
13
Section 186.502(b), F.S.
14
Section 186.512, F.S.
15
Section 186.507, F.S.
16
See chapter 163, F.S.
17
Section 186.502(5), F.S. BILL: CS/SB 1264 Page 7
• Transportation Planning
o Coordinate regional transportation systems and land development policies.
18
o Serve as partners with Metropolitan Planning Organizations to improve regional
mobility.
19
• Emergency Preparedness and Disaster Resilience
o Develop and implement emergency response plans with the Florida Division of
Emergency Management.
20
Effect of Proposed Changes
Sections 2-14 repeal sections 186.501 – 186.515, F.S., relating to the Regional Planning
Councils.
Section 50 allows local governments to enter into agreements to create regional planning entities
pursuant to ch. 163, F.S.
Sections 52-68, 70, 73, 74, 81, 83-96, 98-108, 110-135, 137, 141, and 148 amend sections
68.082, 120.52, 120.525, 120.65, 163.3164, 163.3177, 163.3178, 163.3184, 163.3245, 163.568,
164.1031, 186.003, 186.006, 186.007, 186.008, 186.803, 187.201, 218.32, 258.501, 260.0142,
288.975, 320.08058, 335.188, 339.155, 339.175, 339.285, 339.63, 339.64, 341.041, 343.54,
366.93, 369.303, 369.307, 373.309, 373.415, 377.703, 378.411, 380.031, 380.045, 380.05,
380.055, 380.06, 380.061, 380.07, 380.23, 380.507, 403.031, 403.0752, 403.503, 403.50663,
403.507, 403.509, 403.5115, 403.5175, 403.518, 403.522, 403.5251, 403.526, 403.5271,
403.5272, 403.5363, 403.5365, 403.537, 403.704, 403.7225, 403.7226, 403.723, 403.9403,
403.941, 403.9422, 403.973, 408.033, 420.609, 501.171, and 1013.30, F.S., to make conforming
and non-substantive changes necessary to implement the bill relating to the repeal of regional
planning councils.
Present Situation
Department of Commerce
The department is Florida’s lead agency for 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.
21
The department is also the state’s chief agency for business recruitment and
expansion.
22
The department must also promote viable, sustainable communities by providing
technical assistance and guidance on growth and development issues, grants, and other assistance
to local communities.
23
18
Section 339.155(4), F.S.
19
Section 339.175(6), F.S.
20
Section 252.385(2), F.S.
21
Section 20.60(4), F.S.
22
Id.
23
Section 20.60(4)(c), F.S. BILL: CS/SB 1264 Page 8
The head of the department is the Secretary of Commerce, who is appointed by the Governor and
confirmed by the Senate.
24
The secretary may create offices within the Office of the Secretary
and within the divisions to promote efficient and effective operation of the department.
25
The
department must also ensure that the state’s goals and policies relating to economic development,
workforce development and community planning and development are fully integrated with
appropriate implementation strategies.
26
To achieve these goals, the Legislature established seven divisions and offices within the
department:
• Economic Development
• Community Development
• Workforce Services
• Finance and Administration
• Information Technology
• Office of the Secretary
• Office of Economic Accountability and Transparency
27
The agency is charged with managing the activities of public-private partnerships and state
agencies to avoid duplication and promote coordinated and consistent implementation of
programs, including defense, space, and aerospace development and rural community
development.
28
E-Verify & Prohibition against Purchases of Real Property
It is unlawful for any person to knowingly employ, hire, recruit, or refer, either for herself or
himself or on behalf of another, for private or public employment, an alien who is not duly
authorized to work by the immigration laws of the United States, the Attorney General of the
United States, or the United States Secretary of the Department of Homeland Security.
29
If the
department finds or is notified by a specified entity that an employer has knowingly employed an
unauthorized alien without verifying the employment eligibility, the department must enter an
order making such determination and require repayment of any economic incentive.
30
The department must place the employer on probation for a 1-year period and require that the
employer report quarterly to the department to demonstrate compliance if there was a violation.
Any violation that takes place within 24 months after a previous violation constitutes grounds for
the suspension or revocation of all licenses issued by a licensing agency subject to ch. 120, F.S.
31
24
Section 20.60(2), F.S.
25
Section 20.60(3)(b), F.S.
26
Section 20.60(3), F.S.
27
Id.
28
Section 20.60(4)(e), F.S.
29
Section 448.09(1), F.S.
30
Section 448.09(2), F.S.; Section 288.061(6), F.S., prohibits the Secretary of Commerce from approving an economic
development incentive application unless the application includes proof to the department that the applicant business is
registered with and uses the E-Verify system to verify the work authorization status of all newly hired employees. Upon a
final determination of noncompliance, the awardee must repay all moneys received as an economic development incentive to
the department within 30 days after the final determination.
31
Section 488.09(4), F.S. BILL: CS/SB 1264 Page 9
Section 448.095, F.S., requires an employer to verify each new employee’s employment
eligibility within 3 business days after the first day that the employee begins working for pay. A
public agency, or private agency with 25 or more employees, must use the E-Verify system to
verify employment eligibility. Each employer required to use the E-Verify system must certify
compliance to the Department of Revenue each year when making contributions to or
reimbursing the state’s unemployment compensation or reemployment assistance system.
32
Foreign principals are prohibited from directly or indirectly owning or acquiring by purchase,
grant, devise, or descent any interest in real property within 20 miles of any military installation
or critical infrastructure facility in the state.
33
A foreign principal that directly or indirectly owns
or acquires any interest in real property within 20 miles of a military installation or critical
infrastructure facility in the state before July 1, 2023, may continue to own or hold such real
property, but may not purchase or otherwise acquire by grant, devise, or descent any additional
real property within 20 miles of any military installation or critical infrastructure facility in the
state. Additionally, foreign principals must register with the department.
34
Similarly, the following persons or entities are prohibited from directly or indirectly owning or
acquiring by purchase, grant, devise, or descent any interest in real property in the state:
35
• The People’s Republic of China, the Chinese Communist Party, or any official or member of
the People’s Republic of China or the Chinese Communist Party.
• Any other political party or member of a political party or a subdivision of a political party in
the People’s Republic of China.
• A partnership, an association, a corporation, an organization, or any other combination of
persons organized under the laws of or having its principal place of business in the People’s
Republic of China, or a subsidiary of such entity.
• Any person who is domiciled in the People’s Republic of China and who is not a citizen or
lawful permanent resident of the U.S.
Any person or entity described above that owns or acquires real property in the state before July
1, 2023, must register with the department.
36
Annual Incentives Report
The department must provide the Governor and Legislature with a detailed incentives report by
December 30 of each year quantifying the economic benefits for all of the economic
development incentive programs administered by the department and its public-private
partnerships.
37
32
Section 448.095(2), F.S.
33
Section 692.203, F.S.
34
Section 692.203(3)(a), F.S.
35
Section 692.204(1), F.S.
36
Section 692.204(4), F.S.
37
Section 288.0065, F.S. BILL: CS/SB 1264 Page 10
Effect of Proposed Changes
Section 25 amends s. 20.60, F.S., to include business development in rural or urban areas as one
of the programs the department implements.
The bill also revises the Division of Economic Development's (division) responsibilities to
require the division to establish the Office of Secure Florida, which is responsible for
administering and enforcing E-Verify and employment authorization compliance under sections
448.09 and 448.095, F.S., and the prohibition against the purchase and registration of real
property in Florida by foreign principals under sections 692.203 and 692.204, F.S.
Section 35 amends s. 288.0065, F.S., revising the information required in the department’s
annual incentives report to include a description of trends relating to business interest in and
usage of the various incentives and the number of small businesses and businesses in rural or
urban areas receiving incentives.
Present Situation
Law Enforcement Recruitment Bonus Payment
The Law Enforcement Recruitment Bonus Payment Program (Bonus Program), within the
department, administers one-time bonus payments of up to $5,000 to newly employed officers
38
in Florida.
39
Bonus payments must be prorated based on the funds the Legislature appropriates
for the Bonus Program. The department must develop an annual plan for administering the
Bonus Program and distributing bonus payments to eligible officers. At a minimum, the annual
plan must include:
40
• The method for determining the estimated number of newly employed officers to gain or be
appointed to full-time employment during the applicable fiscal year.
• The minimum eligibility requirements a newly employed officer must meet to receive and
retain a bonus payment, which must include:
o Obtaining certification as a law enforcement officer.
o Gaining full-time employment with a Florida criminal justice agency.
o Maintaining continuous full-time employment with one or more Florida criminal
justice agencies for at least two years from the date on which the officer obtained
a certification, provided that an officer employed by more than one criminal
justice agency may not have a break in service longer than 15 days when
transitioning between employers.
• The method that will be used to determine the bonus payment amount to be distributed to
each newly employed officer.
• The method that will be used to distribute bonus payments to employing law enforcement
agencies for distribution to eligible officers.
38
A newly employed officer is a person who gains or is appointed to full-time employment as a certified law enforcement
officer with a Florida criminal justice employing agency on or after July 1, 2022, and who has never before been employed as
a law enforcement officer in Florida. Section 445.08(1)(d), F.S.
39
Section 445.08(2), F.S.
40
Section 445.08(4), F.S. BILL: CS/SB 1264 Page 11
• The estimated cost to the department associated with developing and administering the
program and distributing bonus payment funds.
• The method by which an officer must reimburse the state if he or she received a bonus
payment but failed to maintain continuous employment for the required two-year period. An
officer is not required to reimburse the state if he or she is discharged from employment with
a law enforcement agency for any reason other than this misconduct.
The Bonus Program expires July 1, 2025.
41
Effect of Proposed Changes
Section 48 amends s. 445.08, F.S., revising the eligibility requirements for the Law Enforcement
Recruitment Bonus Payment Program for newly employed law enforcement officers by
removing the requirement that the officer maintain continuous full-time employment with a
Florida criminal justice agency for at least two years from the date on which certification was
obtained. Furthermore, the bill extends the break in service from 15 calendar days to 180 days.
However, the law enforcement officer must provide documentation to the department justifying
the break in service. The department must establish acceptable circumstances for any such break
in service. Any break in service will not count toward satisfying the 2-year full-time employment
requirement.
The bill also deletes the July 1, 2025 expiration date of the program.
Sales and Use Tax Exemptions for Data Centers
Present Situation
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal
property,
42
admissions,
43
transient rentals,
44
and a limited number of services, and a 4.5 percent
sales and use tax on the rental of commercial real estate.
45
Chapter 212, F.S., contains provisions
authorizing the levy and collection of Florida’s sale and use tax, as well as the exemptions and
credits applicable to certain items or uses under specified circumstances. Sales tax is added to the
price of the taxable good or service and collected from the purchaser at the time of sale.
46
Counties are authorized to impose local discretionary sales surtaxes in addition to the state sales
tax.
47
A surtax applies to “all transactions occurring in the county which transactions are subject
to the state tax imposed on sales, use, services, rentals, admissions, and other transactions by [ch.
212, F.S.], and communications services as defined in ch. 202.”
48
The discretionary sales surtax
is based on the tax rate imposed by the county where the taxable goods or services are sold or
delivered.
41
Section 445.08(9), F.S.
42
Section 212.05(1)(a)1.a., F.S.
43
Section 212.04(1)(b), F.S.
44
Section 212.03(1)(a), F.S.
45
Section 212.031, F.S.
46
Section 212.07(2), F.S.
47
Section 212.055, F.S.
48
Section 212.054(2)(a), F.S. BILL: CS/SB 1264 Page 12
Certain data center property
49
is exempt from the sales and use tax.
50
To be eligible for the
exemption, the data center’s owners and tenants must make a cumulative capital investment of
$150 million or more. The data center must also have a critical IT load of 15 megawatts or
higher and a critical IT load of 1 megawatt or higher dedicated to each individual owner or
tenant within the data center. To receive the exemption, the person seeking the exemption must
apply to the Department of Revenue for a temporary tax exemption certificate.
51
However, the
Department of Revenue is prohibited from issuing a temporary sales and use tax exemption for
those properties after June 30, 2027.
52
Effect of Proposed Changes
Section 26 amends s. 212.08, F.S., to repeal the expiration of the data center sales tax exemption
on June 30, 2027.
Hurricane Loss Mitigation Program
Present Situation
The Legislature created the Florida Hurricane Catastrophe Fund (FHFC), a tax-exempt trust
fund, in 1993
53
in response to problems that developed in the residential property insurance
industry following a series of catastrophic events, including Hurricane Andrew in 1992. When
the Internal Revenue Service granted FHFC tax-exempt status, it required a certain amount of
FHFC funds be appropriated for hurricane mitigation purposes.
In 1999,
54
the Legislature created the Hurricane Loss Mitigation Program under the Division of
Emergency Management. The program is funded by the annual appropriation of $10 million
from the FHFC and funds are to be used as follows:
55
• $7 million for programs to improve the wind resistance of residences and mobile homes;
educating persons concerning the Florida Building Code cooperative programs with local
governments and the Federal Government; and other efforts to prevent or reduce losses or
reduce the cost of rebuilding after a disaster.
• $3 million for retrofitting public facilities for use as hurricane shelters. Each year, the
Division of Emergency Management must prioritize the use of the funds for projects
included in the annual report of the Shelter Development Report. The Division of Emergency
Management must give funding priority to projects in regional planning council regions that
have shelter deficits and to projects that maximize the use of state funds.
49
Data center property is property used exclusively at a data center to construct, outfit, operate, support, power, cool,
dehumidify, secure, or protect a data center and any contiguous dedicated substations. The term includes, but is not limited
to, construction materials, component parts, machinery, equipment, computers, servers, installations, redundancies, and
operating or enabling software. Section 212.08(5)(r)1.c.(IV), F.S.
50
Section 212.08(5)(r), F.S.
51
Section 212.08(5)(r)1.c.(IV)(d)3., F.S.
52
Section 212.08(5)(r)1.c.(IV)(e)., F.S.
53
Chapter 93-409, Laws of Fla.
54
Chapter 99-305, Laws of Fla.
55
Section 215.559(1), F.S. BILL: CS/SB 1264 Page 13
Effect of Proposed Changes
Section 27 amends s. 215.559, F.S., to require the Division of Emergency Management to
prioritize funding under the Hurricane Loss Mitigation Program to projects in regional planning
council regions as those regions existed on January 1, 2025.
Public Shelter Spaces
Present Situation
The Division of Emergency Management manages a program for surveying existing private and
public buildings, with the owner’s consent, to identify appropriately designed and located
shelters in the event of an emergency.
56
By January 31 of each even-numbered year, the Division
of Emergency Management must prepare and submit a statewide emergency shelter plan to the
Governor and Cabinet for approval. The plan must project the state's hurricane shelter needs for
each of the next five years. Additionally, the plan must identify the general location and square
footage of special needs shelters by regional planning council region.
57
The list of facilities recommended for retrofitting using state funds must be provided annually to
the Governor and the Legislature. State funds should be maximized and targeted to regional
planning council regions with hurricane evacuation shelter deficits.
58
Effect of Proposed Changes
Section 28 amends s. 252.385, F.S., to require the statewide emergency shelter plan to identify
the general location and square footage of special needs shelters annually through 2030. The bill
also provides that state funds must be maximized and targeted to regional planning council
regions as those regions existed on January 1, 2025.
Military Base Protection
Present Situation
The Board of Trustees of the Internal Improvement Trust Fund (Board of Trustees) holds state
lands in trust for the use and benefit of the people of Florida.
59
The Board of Trustees consists of
the Governor, Attorney General, Chief Financial Officer, and Commissioner of Agriculture. This
body may acquire, sell, transfer, and administer state lands in the manner consistent with chs.
253 and 259, F.S.
60
The Department of Environmental Protection (DEP), through its Division of
State Lands (DSL), performs all staff duties and functions related to the acquisition,
administration, and disposition of state lands.
61
56
Section 252.385(2)(a), F.S.
57
Section 252.385(2)(b), F.S.
58
Section 252.385(3), F.S.
59
Section 253.001, F.S.
60
Section 253.02(1), F.S.
61
Section 253.002(1), F.S. BILL: CS/SB 1264 Page 14
“Conservation lands” are lands managed for conservation, outdoor resource-based recreation, or
archaeological or historic preservation, except those lands acquired solely to facilitate the
acquisition of other conservation lands.
62
The Board of Trustees may acquire nonconservation lands from the department's annual list
through the Military Base Protection Program to buffer a military installation against
encroachment.
63
A conveyance at less than appraised value must state that the land will revert to
the Board of Trustees if the land is not used for its intended purposes as a military installation
buffer or if the military installation closes.
64
Effect of Proposed Changes
Section 29 amends s. 253.025, F.S., to provide an exemption from land being reverted to the
Board of Trustees if land conveyances are at less than the appraised value. The exemption
applies to federal government agencies, including the Department of Defense, the Army, the
Navy, the Air Force, and the U.S. Coast Guard, if the primary purpose of remaining as a military
installation buffer continues, even though the specific military purpose, mission, and function on
the conveyed land is modified or changes from that which was present or proposed at the time of
the conveyance.
Research, Innovation, Science, and Engineering (RISE) Investment Tax Credit Program
Effect of Proposed Changes
Section 43 creates s. 288.9628, F.S., relating to the Research, Innovation, Science, and
Engineering (RISE) Investment Tax Credit Program within the department to increase venture
capital investment in Florida. The department must coordinate with the Florida Opportunity
Fund and the State Board of Administration in reviewing and approving applications for tax
credits under this section.
Application: An applicant must apply to the department for authorization to claim RISE tax
credits. The department must review and approve or deny a complete application within 60
calendar days after the complete application has been submitted. An applicant must demonstrate
to the department’s satisfaction within 12 months after the complete application has been
submitted that the qualifying private fund
65
has received at least the total capital commitment
contained in its application. The application must include specified names of investors, number
of qualifying instruments, and total capital commitment.
62
Section 253.034(2)(c), F.S.
63
Section 253.025(21)(a), F.S.
64
Section 253.025(21)(d), F.S.
65
By reference to s. 517.12(22), F.S., a “qualifying private fund” means: a private fund that meets the definition of the term
“qualifying private fund” in Securities and Exchange Commission Rule 203(m)-1, 17 C.F.R. s. 275.203(m)-1; a private fund
that meets the definition of the term “venture capital fund” in Securities and Exchange Commission Rule 203(l)-1, 17 C.F.R.
s. 275.203(l)-1; or a “venture capital operating company” as defined in 29 C.F.R. s. 2510.3-101(d) adopted by the United
States Department of Labor under the Employee Retirement Income Security Act of 1974. The definition also includes an
“angel investor group,” defined by s. 517.021, F.S., as a group of accredited investors who hold regular meetings and have
defined processes and procedures for making investment decisions, individually or among the membership of the group, and
who are not associated persons, affiliates, or agents of a dealer or investment adviser. BILL: CS/SB 1264 Page 15
Tax credits and revocation: To receive tax credits, a qualifying private fund must provide
documentation that demonstrates to the department’s reasonable satisfaction that the qualifying
investment meets requirements. A qualifying private fund must make at least one qualified
investment in at least one qualifying portfolio project to be eligible to receive tax credits under
this section. Each submission by a qualifying private fund to receive tax credits for a qualifying
investment in a qualifying portfolio company must include, at a minimum: the amount of cash
deployed in a qualifying portfolio company, the total number of employees employed by the
qualifying portfolio company, and the total number of Florida-based, full-time equivalent
employees employed by the qualifying portfolio company.
A qualifying private fund may receive tax credits equivalent to 25 percent of a qualifying
investment in a qualifying portfolio company. Upon a determination by the department that the
qualifying investment meets the requirements, the department must authorize the Department of
Revenue to issue tax credits to the qualifying private fund. The Department of Revenue may not
issue more than one-fifth of the tax credits authorized for a qualifying investment in a qualifying
portfolio company in a fiscal year. Credits received pursuant to this section may be applied
against the qualifying private fund’s corporate income tax liability. A qualifying private fund
may elect to sell or transfer, in whole or in part, any tax credit issued under this section. An
election to sell or transfer any tax credit received pursuant to this section must be made no later
than 5 years after the date the credit is received by the qualifying private fund, after which the
credit expires and may not be used. A qualifying private fund may not sell or transfer credits that
have been authorized by the department but not yet issued by the Department of Revenue.
The department may revoke or modify any written decision qualifying, certifying, or otherwise
granting eligibility for tax credits under this section if it is discovered that the qualifying private
fund submitted any false statement, representation, or certification in any application filed in an
attempt to receive tax credits under this section, or if the information in a previously completed
application materially changes. The department must immediately notify the Department of
Revenue of any revoked or modified orders affecting previously granted tax credits.
Additionally, the qualifying private fund must notify the Department of Revenue of any change
in its tax credit claimed.
Compliance: A qualifying private fund must annually report to the department for each
qualifying investment for 5 years after authorization to receive credits. Failure to do so will result
in the qualifying private fund’s tax credit being revoked. To receive a tax credit, a qualifying
fund must submit the following to the department: certification that there have been no material
changes to the information contained in the application or, a disclosure containing all material
changes, if any; documentation supporting the total number of full-time equivalent employees
employed by the qualifying portfolio company; documentation supporting the total number of
full-time equivalent employees employed in this state by the qualifying portfolio company; and
documentation supporting that the qualifying private fund has not exited its position from the
qualifying portfolio company through acquisition by a company not based in this state. For
purposes of this section and part III of chapter 692, committed capital invested in a qualifying
portfolio company by a venture capital fund may not be construed as having ownership of the
qualifying portfolio company.
BILL: CS/SB 1264 Page 16
Sanctions: The department must revoke and recapture the tax credits from the qualifying private
fund and the Department of Revenue if a qualifying investment does not report to the department
annually for five years after authorization to receive the tax credits. In such instances, the
qualifying private fund must repay to the department an amount equal to 50% of the tax credits
claimed by a qualifying portfolio company for the qualifying investment. Recaptured funds must
be deposited into the General Revenue Fund. The department must also revoke and recapture the
approval of tax credits for submitting a false statement, representation, or certification in an
application by a qualifying private fund. In such instances, the qualifying private fund must
repay the department an amount equal to 100% of the tax credits authorized by the department.
Recaptured funds must be deposited into the General Revenue Fund.
Priority of tax credits: Fifty percent of the tax credits must be made available from July 1 to
December 31 each year to provide tax credits for qualifying investments in qualifying portfolio
companies located in rural communities defined in s. 288.065(2), F.S. All remaining tax credits
must be made available from January 1 to June 30 of each year on a first-come, first-served
basis, subject to the eligibility of the qualifying investment.
Reporting and rulemaking: Beginning December 30, 2026, the department must include the
amounts of tax credits authorized and received, the total number of jobs created, and the total
number of jobs created in this state in its annual incentives report required in s. 288.0065, F.S.
The department is authorized to adopt rules to implement this section.
Space Florida
Present Situation
Space Florida is an independent special district
66
created to promote aerospace business
development by facilitating business and infrastructure financing, spaceport operations, research
and development, workforce development, and innovative education programs.
67
Space Florida
acts as the single point of contact for state aerospace-related activities with federal agencies, the
military, state agencies, businesses, and the private sector.
68
Space Florida may 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.
69
66
A “special district” is a unit of local government created for a particular purpose, with jurisdiction to operate with a limited
geographic boundary. See Halifax Hospital Medical Center v. State of Fla., et al., 278 So. 3d 545, 547 (Fla. 2019). Special
districts are created by general law, special act, local ordinance, or by rule of the Governor and Cabinet. See ss. 189.02(1),
189.031(3), and. 190.005(1), F.S. See generally s. 189.012(6), F.S. A special district has only those powers expressly provided
by, or reasonably implied from, the authority provided in the district’s charter. Special districts provide specific municipal
services in addition to, or in place of, those provided by a municipality or county. A “dependent special district” is a special
district subject to significant control by the governing body of a single county or municipality. Section 189.012(2), F.S. An
“independent special district” is any district that is not a dependent special district. Section 189.012(3), F.S.
67
Section 331.302, F.S.
68
Section 331.3011, F.S.
69
Section 331.305, F.S. BILL: CS/SB 1264 Page 17
Space Florida is not an agency for the purpose of fiscal affairs of the state, appropriations acts,
legislative budgets, and approved budgets
70
or for the procurement of personal property and
services.
71
Agency Procurement Requirements
Section 287.055, F.S., the Consultants Competitive Negotiation Act, specifies the competitive
selection process to be followed by an agency when procuring professional services, which
include architecture, professional engineering, landscape architecture, or registered surveying
and mapping, as defined by the laws of the state, or those performed by any architect,
professional engineer, landscape architect, or registered surveyor and mapper in connection with
his or her professional employment or practice.
72
Section 255.20, F.S., specifies the procurement
process to be followed for local bids and contracts for public construction projects.
Effect of Proposed Changes
Section 46 amends s. 331.302, F.S., to provide that Space Florida is not an agency under s.
287.055, F.S., for purposes of its ability to bid and contract in professional or construction
services, or both, under an arrangement with a person when:
• The person offering personal or construction goods or services is not subject to the
requirements of s. 287.055, F.S.;
• Space Florida and the person execute a contract with terms acceptable to Space Florida; and
• The person provides to Space Florida via contract an unqualified representation and warranty
that the payments by the person to Space Florida in return for the possession and use of the
project by the person will not be derived, directly or indirectly, from state or local
government funds.
The bill specifies monies received by the person contracted to provide goods produced and
services provided from government entities in the ordinary course of its operation of the project
are not state or local government funds.
Managerial Employees
Present Situation
Section 110.205, F.S., specifies the state employees who are classified as career service, and
designates the positions that are exempt from career service. Pursuant to s. 110.205(2)(w), F.S.,
managerial employees, as defined in s. 447.203(4), F.S., are exempt from career service.
Pursuant to s. 110.603, F.S., the DMS must adopt a classification plan and a pay plan consisting
of pay bands appropriate to the positions included in the Selected Exempt Service and which
provides for salary increases based on performance. Such pay bands must be designed to attract
and retain qualified personnel for the Selected Exempt Service. The pay plan and benefit
package for the Selected Exempt Service must provide for greater pay and benefits overall than
70
See s. 216.011(1)(ww), F.S.
71
See s. 287.012(1), F.S.
72
Section 287.055(2)(a), F.S. BILL: CS/SB 1264 Page 18
are provided for the Career Service and less pay and benefits overall than are provided for the
Senior Management Service.
Effect of Proposed Changes
Section 49 amends s. 447.203, F.S., to revise the definition of “managerial employees” to
include those who have a significant and specific role executing statewide business and
economic development projects in support of business recruitment, retention, and expansion.
This has the effect of classifying such employees as Selected Exempt Service, pursuant to use of
that definition in s. 110.205(2)(w), F.S.
Miscellaneous Provisions
Sections 142 - 150 reenact ss. 110.205, 163.3162, 373.129, 339.2819, 380.0552, 403.5064,
403.5251, 403.5271, 403.9421, F.S., for the purpose of incorporating the amendments made
under this bill.
Section 151 provides an effective date of July 1, 2025.
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:
Single Subject
Article III, Section 6 of the State Constitution requires every law to “embrace but one
subject and matter properly connected therewith.” The purpose of this single subject
prohibition is to prohibit logrolling, in which multiple unrelated measures are combined
in one bill in order to secure passage of a measure that is unlikely to pass on its own
merits.
73
An act may be as broad as the Legislature chooses, provided the matters
73
Santos v. State, 380 So.2d 1284 (Fla. 1980). BILL: CS/SB 1264 Page 19
included in the act have a natural or logical connection.
74
The requirement is violated if a
law is written to accomplish separate and disassociated objects of legislative intent.
75
The
Florida Supreme Court has opined that the single subject clause contains three
requirements. First, each law shall embrace only one subject. Second, the law may
include any matter that is properly connected with the subject. The third requirement,
related to the first, is that the subject shall be briefly expressed in the title.
76
The bill is entitled “An act relating to rural and urban business enterprises.” Section 29 of
the bill relates to the acquisition of state lands for purposes of buffering military
installations, and section 51 relates to the Law Enforcement Recruitment Bonus Payment
Program.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference has not yet determined the fiscal impact of the bill.
The bill may have a positive fiscal impact on local governments that have data centers
due to the extension of the existing sales and use tax exemption certain data centers
receive because the exemption could lead to additional economic growth.
77
However, the
bill is likely to have a negative fiscal impact on general revenue.
The bill allocates $100 million in tax credits under the RISE tax credit program.
However, the credits are issued in one-fifth increments over five years and must be
matched with new capital and revenue production.
B. Private Sector Impact:
Employers may benefit from utilizing the Office of Secure Florida's resources to verify
employment eligibility through E-Verify.
Businesses participating in the RISE investment tax credit program may see an increase
in high-paying jobs in high-tech, manufacturing, and research and development sectors.
C. Government Sector Impact:
The bill may have a negative fiscal impact on the department due to the creation of the
Office of Secure Florida. However, the department’s legislative budget request includes
additional staff for the Office.
78
The bill could impact state expenditures by deleting the expiration date of the Law
Enforcement Recruitment Bonus Payment Program, if the program is funded.
74
Chenoweth v. Kemp, 396 So.2d 1122 (Fla. 1981).
75
State ex rel. Landis v. Thompson, 163 So. 270 (Fla. 1935).
76
Franklin v. State, 887 So.2d 1063, 1072 (Fla. 2004).
77
Department of Commerce analysis for SB 1264 (2025). On file with the Senate Commerce and Tourism Committee.
78
Id. BILL: CS/SB 1264 Page 20
VI. Technical Deficiencies:
None.
VII. Related Issues:
Section 26 of the bill repeals the data center sales tax exemption's expiration date of June 30,
2027. It does not provide a future expiration date, thus allowing certain data centers to enjoy an
indefinite exemption.
Section 48 of the bill extends the break in service from 15 calendar days to 180 days for newly
employed officers participating in the Law Enforcement Recruitment Bonus Payment Program.
The bill also provides that any break in service will not count toward satisfying the 2-year full-
time employment requirement under the program. It is unclear if an officer must start the 2-year
commitment over after the break in service.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 20.60, 212.08,
215.559, 252.385, 253.025, 287.012, 287.042, 287.09451, 287.0947, 288.001, 288.0065,
288.1167, 288.1229, 288.7015, 288.702, 288.703, 288.705, 288.776, 290.0056, 290.0057,
331.302, 331.351, 445.08, 447.203, 17.11, 68.082, 120.52, 120.525, 120.65, 163.3164, 163.3177,
163.3178, 163.3184, 163.3245, 163.568, 164.1031, 186.003, 186.006, 186.007, 186.008,
186.803, 187.201, 212.096, 218.32, 255.101, 255.102, 258.501, 260.0142, 287.057, 287.0943,
287.09431, 288.001, 287.055, 288.7031, 288.975, 290.004, 320.08058, 335.188, 339.155,
339.175, 339.285, 339.63, 339.64, 341.041, 343.54, 366.93, 369.303, 369.307, 373.309, 373.415,
376.3072, 377.703, 378.411, 380.031, 380.045, 380.05, 380.055, 380.06, 380.061, 380.07,
380.23, 380.507, 381.986, 403.031, 403.0752, 403.503, 403.50663, 403.507, 403.509, 403.5115,
403.5175, 403.518, 403.522, 403.526, 403.5271, 403.5272, 403.5363, 403.5365, 403.537,
403.704, 403.7225, 403.7226, 403.723, 403.9403, 403.941, 403.9422, 403.973, 408.033,
420.609, 473.3065, 501.171, 625.3255, 657.042, 658.67, 1013.30, 215.971, 257.193, 288.0655,
627.6699, 288.0001, 110.205, 163.3162, 373.129, 339.2819, 380.0552, 403.5064, 403.9421.
This bill creates the following sections of the Florida Statutes: 288.9628.
This bill repeals the following sections of the Florida Statutes: 24.113, 186.501, 186.502,
186.503, 186.504, 186.505, 186.506, 186.507, 186.508, 186.509, 186.511, 186.512, 186.513,
186.515, 287.0931, 288.12266, 288.124, 288.706, 288.7094, 288.7102, 288.71025, 288.7103,
and 288.714.
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 Commerce and Tourism on March 31, 2025:
The CS: BILL: CS/SB 1264 Page 21
• Removes provisions relating to the Rural Economic Development Initiative and the
Rural Accelerator Program.
• Removes sections making conforming changes related to the Rural Economic
Development Initiative.
• Retains the current statutory definition for a “minority person” in s. 288.703, F.S.
Relating to the RISE Investment Tax Credit Program, the CS:
• Requires the Department of Commerce (department) to revoke and recapture to the
qualifying private fund and the Department of Revenue if a qualifying investment
does not annually report to the department for five years after authorization to receive
the credits. In such instances, the qualifying private fund must repay to the
department an amount equal to 50% of the tax credits authorized.
• Requires the department to revoke and recapture the approval of tax credits for
submitting a false statement, representation, or certification in any application by a
qualifying private fund. In such instances, the qualifying private fund must repay the
department an amount equal to 100% of the tax credits authorized by the department.
• Requires 50% of tax credits be made available from July 1 to December 31 of each
year. All remaining tax credits must be made available from January 1 to June 30 of
each year on a first-come, first-served basis.
• Authorizes the department to adopt rules to implement the program.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.