Florida Senate - 2017                        COMMITTEE AMENDMENT
       Bill No. SB 364
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/13/2017           .                                

       The Committee on Commerce and Tourism (Gainer) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (5) is added to section 288.8012,
    6  Florida Statutes, to read:
    7         288.8012 Definitions.—As used in ss. 288.80-288.8017, the
    8  term:
    9         (5) “Settlement agreement” means the agreement between the
   10  gulf states and the BP entities with respect to economic claims
   11  arising from the Deepwater Horizon incident.
   12         Section 2. Subsections (2), (3), and (4) of section
   13  288.8013, Florida Statutes, are amended to read:
   14         288.8013 Triumph Gulf Coast, Inc.; Recovery Fund; creation;
   15  investment.—
   16         (2)(a) Triumph Gulf Coast, Inc., must create and administer
   17  the Recovery Fund for the benefit of the disproportionately
   18  affected counties. The principal of the fund shall derive from
   19  75 percent of all moneys received by the state pursuant to the
   20  settlement agreement funds recovered by the Attorney General for
   21  economic damage to the state resulting from the Deepwater
   22  Horizon disaster, after payment of reasonable and necessary
   23  attorney fees, costs, and expenses, including such attorney
   24  fees, costs, and expenses pursuant to s. 16.0155.
   25         (b)1. After reasonable and necessary payment of attorney
   26  fees, costs, and related expenses, 75 percent of the remaining
   27  moneys received by the state before June 30, 2017, pursuant to
   28  the settlement agreement is appropriated to Triumph Gulf Coast,
   29  Inc., and shall be transferred to the Recovery Fund no later
   30  than August 1, 2017.
   31         2. Seventy-five percent of the moneys received by the state
   32  pursuant to the settlement agreement on or after July 1, 2017,
   33  is appropriated to the Triumph Gulf Coast, Inc., and shall be
   34  transferred to the Recovery Fund no later than 30 days after
   35  such funds are received by the state.
   36         (3) The Recovery Fund must be maintained as a long-term and
   37  stable source of revenue, which shall decline over a 30-year
   38  period in equal amounts each year. Triumph Gulf Coast, Inc.,
   39  shall establish a trust account at a federally insured financial
   40  institution to hold funds and make deposits and payments, and
   41  shall consult with the State Board of Administration and invest
   42  moneys from the settlement agreement in appropriate State Board
   43  of Administration funds. Earnings generated by investments and
   44  interest of the fund, plus the amount of principal available
   45  each year, shall be available to make awards pursuant to this
   46  act and pay administrative costs. Earnings must shall be
   47  accounted for separately from principal funds set forth in
   48  subsection (2). Administrative costs are limited to 0.75 2.25
   49  percent of the principal earnings in a calendar year.
   50  Administrative costs include payment of investment fees, travel
   51  and per diem expenses of board members, audits, salary or other
   52  costs for employed or contracted staff, including required staff
   53  under s. 288.8014(9), and other allowable costs. Triumph Gulf
   54  Coast, Inc., shall cause an annual audit to be conducted of the
   55  investments of the Recovery Fund by the independent certified
   56  public accountant retained as required in s. 288.8014. Any funds
   57  remaining in the Recovery Fund after 30 years shall revert to
   58  the State Treasury.
   59         (4) Triumph Gulf Coast, Inc., shall invest and reinvest the
   60  principal of the Recovery Fund in accordance with s. 617.2104,
   61  in such a manner not to subject the funds to state or federal
   62  taxes, and consistent with an investment policy statement
   63  adopted by the corporation.
   64         (a) The board of directors shall formulate an investment
   65  policy governing the investment of the principal of the Recovery
   66  Fund. The policy shall pertain to the types, kinds, or nature of
   67  investment of any of the funds, and any limitations, conditions
   68  or restrictions upon the methods, practices, or procedures for
   69  investment, reinvestments, purchases, sales, or exchange
   70  transactions, provided such policies shall not conflict with nor
   71  be in derogation of any state constitutional provision or law.
   72  The policy shall be formulated with the advice of the financial
   73  advisor in consultation with the State Board of Administration.
   74         (b) Triumph Gulf Coast, Inc., must competitively procure
   75  one or more money managers, under the advice of the financial
   76  advisor in consultation with the State Board of Administration,
   77  to invest the principal of the Recovery Fund. The applicant
   78  manager or managers may not include representatives from the
   79  financial institution housing the trust account for the Recovery
   80  Fund. The applicant manager or managers must present a plan to
   81  invest the Recovery Fund to maximize earnings while prioritizing
   82  the preservation of Recovery Fund principal. Any agreement with
   83  a money manager must be reviewed by Triumph Gulf Coast, Inc.,
   84  for continuance at least every 5 years. Plans should include
   85  investment in technology and growth businesses domiciled in, or
   86  that will be domiciled in, this state or businesses whose
   87  principal address is in this state.
   88         (c) Costs and fees for investment services shall be
   89  deducted from the earnings as administrative costs. Fees for
   90  investment services shall be no greater than 150 basis points.
   91         (d) Annually, Triumph Gulf Coast, Inc., shall cause an
   92  audit to be conducted of the investment of the Recovery Fund by
   93  the independent certified public accountant retained in s.
   94  288.8014. The expense of such audit shall be paid from earnings
   95  for administrative purposes.
   96         Section 3. Subsections (2) and (9) of section 288.8014,
   97  Florida Statutes, are amended to read:
   98         288.8014 Triumph Gulf Coast, Inc.; organization; board of
   99  directors.—
  100         (2) Triumph Gulf Coast, Inc., initially shall be governed
  101  by a five-member 5-member board of directors. Each of the
  102  Trustees of the State Board of Administration, the President of
  103  the Senate, and the Speaker of the House of Representatives
  104  shall each appoint one member from the private sector. As of the
  105  effective date of this act, the number of board members
  106  increases to seven, with the President of the Senate and the
  107  Speaker of the House of Representatives each appointing an
  108  additional private sector member from one of the four least
  109  populous disproportionately affected counties as identified by
  110  the United States Census Bureau in its March 2017 estimates of
  111  county population, so that two such counties are represented on
  112  the board. The board of directors shall annually elect a
  113  chairperson from among the board’s members. The chairperson may
  114  be removed by a majority vote of the members. His or her
  115  successor shall be elected to serve for the balance of the
  116  removed chairperson’s term. The chairperson is responsible to
  117  ensure records are kept of the proceedings of the board of
  118  directors and is the custodian of all books, documents, and
  119  papers filed with the board; the minutes of meetings of the
  120  board; and the official seal of Triumph Gulf Coast, Inc.
  121         (9)(a) Triumph Gulf Coast, Inc., is permitted to hire or
  122  contract for all staff necessary to the proper execution of its
  123  powers and duties to implement this act. The corporation is
  124  required to retain:
  125         1. An independent certified public accountant licensed in
  126  this state pursuant to chapter 473 to inspect the records of and
  127  to annually audit the expenditure of the funds earnings and
  128  available principal disbursed by Triumph Gulf Coast, Inc.; and
  129         2. An independent financial advisor to assist Triumph Gulf
  130  Coast, Inc., in the development and implementation of a
  131  strategic plan consistent with the requirements of this act.
  132         3. An economic advisor who will assist in the award
  133  process, including the development of priorities, allocation
  134  decisions, and the application and process; will assist the
  135  board in determining eligibility of award applications and the
  136  evaluation and scoring of applications; and will assist in the
  137  development of award documentation.
  138         2.4. A legal advisor with expertise in not-for-profit
  139  investing and contracting and who is a member of The Florida Bar
  140  to assist with contracting and carrying out the intent of this
  141  act.
  142         (b) Triumph Gulf Coast, Inc., shall require all employees
  143  of the corporation to comply with the code of ethics for public
  144  employees under part III of chapter 112. Retained staff under
  145  paragraph (a) must agree to refrain from having any direct
  146  interest in any contract, franchise, privilege, project,
  147  program, or other benefit arising from an award by Triumph Gulf
  148  Coast, Inc., during the term of his or her appointment and for 2
  149  years after the termination of such appointment.
  150         (c) Retained staff under paragraph (a) shall be available
  151  to consult with the board of directors and shall attend meetings
  152  of the board of directors. These individuals shall not be
  153  permitted to vote on any matter before the board.
  154         Section 4. Subsection (2) of section 288.8015, Florida
  155  Statutes, is amended to read:
  156         288.8015 Board of directors; powers.—In addition to the
  157  powers and duties prescribed in chapter 617 and the articles and
  158  bylaws adopted in compliance with that chapter, the board of
  159  directors may:
  160         (2) Make expenditures including any necessary
  161  administrative expenditure from earnings consistent with its
  162  powers.
  164  Under no circumstances may the credit of the State of Florida be
  165  pledged on behalf of Triumph Gulf Coast, Inc.
  166         Section 5. Subsections (1) and (3) of section 288.8017,
  167  Florida Statutes, are amended to read:
  168         288.8017 Awards.—
  169         (1) Triumph Gulf Coast, Inc., shall make awards from
  170  available funds earnings and principal derived under s.
  171  288.8013(2) to projects or programs that meet the priorities for
  172  economic recovery, diversification, and enhancement of the
  173  disproportionately affected counties, notwithstanding s. 377.43.
  174  Awards may be provided for:
  175         (a) Ad valorem tax reduction within disproportionately
  176  affected counties;
  177         (b) Payment of impact fees adopted pursuant to s. 163.31801
  178  and imposed within disproportionately affected counties;
  179         (c) Administrative funding for economic development
  180  organizations located within the disproportionately affected
  181  counties;
  182         (d) Local match requirements of ss. 288.0655, 288.0659,
  183  288.1045, and 288.106 for projects in the disproportionately
  184  affected counties;
  185         (e) Economic development projects in the disproportionately
  186  affected counties;
  187         (f) Infrastructure projects that are shown to enhance
  188  economic development in the disproportionately affected
  189  counties;
  190         (g) Grants to local governments in the disproportionately
  191  affected counties to establish and maintain equipment and
  192  trained personnel for local action plans of response to respond
  193  to disasters, such as plans created for the Coastal Impacts
  194  Assistance Program;
  195         (h) Grants to support programs of excellence that prepare
  196  students for future occupations and careers at K-20 institutions
  197  that have home campuses in the disproportionately affected
  198  counties. Eligible programs include those that increase
  199  students’ technology skills and knowledge; encourage industry
  200  certifications; provide rigorous, alternative pathways for
  201  students to meet high school graduation requirements; strengthen
  202  career readiness initiatives; fund high-demand programs of
  203  emphasis at the bachelor’s and master’s level designated by the
  204  Board of Governors; and, similar to or the same as talent
  205  retention programs created by the Chancellor of the State
  206  University System and the Commission of Education, encourage
  207  students with interest or aptitude for science, technology,
  208  engineering, mathematics, and medical disciplines to pursue
  209  postsecondary education at a state university within the
  210  disproportionately affected counties; and
  211         (i) Grants to the tourism entity created under s. 288.1226
  212  for the purpose of advertising and promoting tourism, Fresh From
  213  Florida, or related content on behalf of one or all of the
  214  disproportionately affected counties.
  215         (3) Triumph Gulf Coast, Inc., may make awards as
  216  applications are received or may establish application periods
  217  for selection. Awards may not be used to finance 100 percent of
  218  any project or program. Triumph Gulf Coast, Inc., may require a
  219  one-to-one private-sector match or higher for an award, if
  220  applicable and deemed prudent by the board of directors. An
  221  awardee may not receive all of the earnings or available funds
  222  principal in any given year.
  223         Section 6. Section 377.43, Florida Statutes, is repealed.
  224         Section 7. The Division of Law Revision and Information is
  225  directed to replace the phrase “the effective date of this act”
  226  where it occurs in this act with the date the act becomes
  227  effective.
  228         Section 8. This act shall take effect upon becoming a law.
  230  ================= T I T L E  A M E N D M E N T ================
  231  And the title is amended as follows:
  232         Delete everything before the enacting clause
  233  and insert:
  234                        A bill to be entitled                      
  235         An act relating to the Recovery Fund for the Deepwater
  236         Horizon incident; amending s. 288.8012, F.S.; defining
  237         the term “settlement agreement”; amending s. 288.8013,
  238         F.S.; revising the funding source of the principal of
  239         the Recovery Fund for the Deepwater Horizon incident;
  240         requiring that certain funds be transferred to the
  241         Recovery Fund within a specified timeframe; deleting a
  242         requirement that the Recovery Fund be maintained as a
  243         long-term, stable source of revenue, for a specified
  244         period; requiring Triumph Gulf Coast, Inc., to consult
  245         with the State Board of Administration and to invest
  246         moneys from the settlement agreement in certain funds;
  247         revising the limit on administrative costs; deleting
  248         provisions requiring the board of directors of Triumph
  249         Gulf Coast, Inc., to formulate a specified investment
  250         policy for the Recovery Fund; deleting provisions
  251         requiring Triumph Gulf Coast, Inc., to competitively
  252         procure one or more money managers to invest the
  253         principal of the Recovery Fund; deleting a provision
  254         limiting costs and fees for investment services and
  255         requiring such costs and fees to be deducted from
  256         earnings as administrative costs; amending s.
  257         288.8014, F.S.; increasing the number of members of
  258         the board of directors of Triumph Gulf Coast, Inc., as
  259         of a specified date; providing for the appointment of
  260         the new members; requiring that the new members be
  261         residents of certain disproportionately affected
  262         counties; revising the duties of the independent
  263         certified public accountant that Triumph Gulf Coast,
  264         Inc., is required to retain; deleting provisions
  265         requiring Triumph Gulf Coast, Inc., to retain an
  266         independent financial advisor and an economic advisor;
  267         amending s. 288.8015, F.S.; deleting a provision
  268         specifying that expenditures made by the board are
  269         made from earnings; amending s. 288.8017, F.S.;
  270         revising the source for awards made by Triumph Gulf
  271         Coast, Inc.; conforming a provision to changes made by
  272         the act; requiring that K-20 institutions have a
  273         campus, rather than their home campus, in a
  274         disproportionately affected county as a condition of
  275         eligibility for its students to receive certain
  276         grants; revising annual restrictions on awards;
  277         repealing s. 377.43, F.S., relating to the
  278         disbursement of funds received for damages caused by
  279         the Deepwater Horizon oil spill; providing a directive
  280         to the Division of Law Revision and Information;
  281         providing an effective date.