Florida Senate - 2017 SENATOR AMENDMENT
Bill No. CS for CS for SB 364
Senate . House
Floor: WD/2R .
04/30/2017 03:07 PM .
Senators Gainer, Broxson, and Montford moved the following:
1 Senate Amendment (with title amendment)
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Section 288.80, Florida Statutes, is amended to
7 288.80 Short title.—This section and ss. 288.8011-288.8018
ss. 288.8011-288.8017 may be cited as the “Gulf Coast Economic
9 Corridor Act.”
10 Section 2. Section 288.8012, Florida Statutes, is amended
11 to read:
12 288.8012 Definitions.—As used in ss. 288.8011-288.8018 ss.
13 288.80-288.8017, the term:
14 (1) “Awardee” means a person, organization, or local
15 government granted an award of funds as authorized in s.
16 288.8017 from the Recovery Fund for a project or program.
17 (2) “Department” means the Department of Economic
19 (3) (2) “Disproportionately affected county” means Bay
20 County, Escambia County, Franklin County, Gulf County, Okaloosa
21 County, Santa Rosa County, Walton County, or Wakulla County.
22 (3) “Earnings” means all the income generated by
23 investments and interest.
24 (4) “Settlement agreement” means the agreement entitled
25 “Settlement Agreement Between the Gulf States and the BP
26 Entities with Respect to Economic and Other Claims Arising from
27 the Deepwater Horizon Incident,” which was entered into on
28 October 5, 2015, in the case styled In re: Oil Spill by the Oil
29 Rig “Deepwater Horizon” in the Gulf of Mexico, on April 20,
30 2010, MDL 2179 in the United States District Court for the
31 Eastern District of Louisiana “Recovery Fund” means a trust
32 account established by Triumph Gulf Coast, Inc., for the benefit
33 of the disproportionately affected counties.
34 Section 3. Section 288.8013, Florida Statutes, is amended
35 to read:
36 288.8013 Triumph Gulf Coast, Inc.; Recovery Fund; creation;
37 funding; investment.—
38 (1) There is created within the department of Economic
39 Opportunity a nonprofit corporation, to be known as Triumph Gulf
40 Coast, Inc., which shall be registered, incorporated, organized,
41 and operated in compliance with chapter 617, and which is not a
42 unit or entity of state government. Triumph Gulf Coast, Inc.,
43 may receive, hold, invest, and administer the Recovery Fund in
44 support of this act. Triumph Gulf Coast, Inc., is a separate
45 budget entity and is not subject to control, supervision, or
46 direction by the department of Economic Opportunity in any
47 manner, including, but not limited to, personnel, purchasing,
48 transactions involving real or personal property, and budgetary
50 (2) Seventy-five percent of all payments to the state
51 pursuant to the settlement agreement shall be transferred
52 immediately by the Chief Financial Officer from the General
53 Revenue Fund to the Triumph Gulf Coast Trust Fund Triumph Gulf
54 Coast, Inc., must create and administer the Recovery Fund for
55 the benefit of the disproportionately affected counties. The
56 principal of the fund shall derive from 75 percent of all funds
57 recovered by the Attorney General for economic damage to the
58 state resulting from the Deepwater Horizon disaster, after
59 payment of reasonable and necessary attorney fees, costs, and
60 expenses, including such attorney fees, costs, and expenses
61 pursuant to s. 16.0155.
62 (a) Such funds are appropriated to Triumph Gulf Coast,
63 Inc., and shall be released by the department for deposit into
64 the trust account established by Triumph Gulf Coast, Inc.,
65 pursuant to subsection (3) as follows:
66 1. Seventy-five percent of the moneys received by the state
67 pursuant to the settlement agreement on or before July 1, 2017,
68 shall be immediately released to Triumph Gulf Coast, Inc.
69 2. Seventy-five percent of the moneys received by the state
70 pursuant to the settlement agreement after July 1, 2017, shall
71 be released to Triumph Gulf Coast, Inc., no later than 30 days
72 after such funds are transferred to the Triumph Gulf Coast Trust
74 (b) Triumph Gulf Coast, Inc., shall make awards for
75 projects or programs within the geographic boundaries of each
76 disproportionately affected county based on the following
77 minimum allocations:
78 1. At least 40 percent of the moneys transferred to Triumph
79 Gulf Coast, Inc., pursuant to subparagraph (a)1., must be
80 allocated equally among the eight disproportionately affected
81 counties based on a minimum allocation of at least 5 percent per
83 2. For each transfer of funds to Triumph Gulf Coast, Inc.,
84 pursuant to subparagraph (a)2., at least 32 percent of the
85 moneys must be allocated equally among the eight
86 disproportionately affected counties based on a minimum
87 allocation of at least 4 percent per county.
88 (c) Each board of county commissioners shall solicit
89 proposed projects and programs from other elected local
90 governing boards within the county and shall provide Triumph
91 Gulf Coast, Inc., with a list of proposed projects and programs
92 located within its county. The submitted list of proposed
93 projects and programs must include projects and programs
94 submitted by other elected local governing boards and projects
95 and programs recommended by the board of county commissioners.
96 (d) Any remaining funds shall be allocated by Triumph Gulf
97 Coast, Inc., for administrative costs and to make awards
98 pursuant to s. 288.8017. Administrative costs may not exceed
99 0.75 percent of the funds released to Triumph Gulf Coast, Inc.
100 (3) The Recovery Fund must be maintained as a long-term and
101 stable source of revenue, which shall decline over a 30-year
102 period in equal amounts each year. Triumph Gulf Coast, Inc.,
103 shall establish a trust account at a federally insured financial
104 institution to hold funds received from the Triumph Gulf Coast
105 Trust Fund and make deposits and payments. Interest earned in
106 the trust account shall be deposited monthly into the Triumph
107 Gulf Coast Trust Fund. Triumph Gulf Coast, Inc., may invest
108 surplus funds in the Local Government Surplus Funds Trust Fund,
109 pursuant to s. 218.407, and interest earned, net of fees, shall
110 be transferred monthly into the Triumph Gulf Coast Trust Fund
111 Earnings generated by investments and interest of the fund, plus
112 the amount of principal available each year, shall be available
113 to make awards pursuant to this act and pay administrative
114 costs. Earnings shall be accounted for separately from principal
115 funds set forth in subsection (2). Administrative costs may are
116 limited to 2.25 percent of the earnings in a calendar year.
117 Administrative costs include payment of investment fees, travel
118 and per diem expenses of board members, audits, salary or other
119 costs for employed or contracted staff, including required staff
120 under s. 288.8014(9), and other allowable costs. The annual
121 salary for any employee or contracted staff may not exceed
122 $130,000 and associated benefits may not exceed 35 percent of
123 salary Any funds remaining in the Recovery Fund after 30 years
124 shall revert to the State Treasury.
125 (4) Triumph Gulf Coast, Inc., shall invest and reinvest the
126 principal of the Recovery Fund in accordance with s. 617.2104,
127 in such a manner not to subject the funds to state or federal
128 taxes, and consistent with an investment policy statement
129 adopted by the corporation.
130 (a) The board of directors shall formulate an investment
131 policy governing the investment of the principal of the Recovery
132 Fund. The policy shall pertain to the types, kinds, or nature of
133 investment of any of the funds, and any limitations, conditions
134 or restrictions upon the methods, practices, or procedures for
135 investment, reinvestments, purchases, sales, or exchange
136 transactions, provided such policies shall not conflict with nor
137 be in derogation of any state constitutional provision or law.
138 The policy shall be formulated with the advice of the financial
139 advisor in consultation with the State Board of Administration.
140 (b) Triumph Gulf Coast, Inc., must competitively procure
141 one or more money managers, under the advice of the financial
142 advisor in consultation with the State Board of Administration,
143 to invest the principal of the Recovery Fund. The applicant
144 manager or managers may not include representatives from the
145 financial institution housing the trust account for the Recovery
146 Fund. The applicant manager or managers must present a plan to
147 invest the Recovery Fund to maximize earnings while prioritizing
148 the preservation of Recovery Fund principal. Any agreement with
149 a money manager must be reviewed by Triumph Gulf Coast, Inc.,
150 for continuance at least every 5 years. Plans should include
151 investment in technology and growth businesses domiciled in, or
152 that will be domiciled in, this state or businesses whose
153 principal address is in this state.
154 (c) Costs and fees for investment services shall be
155 deducted from the earnings as administrative costs. Fees for
156 investment services shall be no greater than 150 basis points.
157 (d) Annually, Triumph Gulf Coast, Inc., shall cause an
158 audit to be conducted of the investment of the Recovery Fund by
159 the independent certified public accountant retained in s.
160 288.8014. The expense of such audit shall be paid from earnings
161 for administrative purposes.
162 (4) (5) Triumph Gulf Coast, Inc., shall report on June 30
163 and December 30 of each year to the Governor, the President of
164 the Senate, and the Speaker of the House of Representatives on
165 the financial status of the Recovery Fund and its investments,
166 the established priorities; , the project and program selection
167 process, including a list of all submitted projects and programs
168 and reasons for approval or denial; , and the status of all
169 approved awards.
170 (5) (6) The Auditor General shall conduct an operational
171 audit of the Recovery Fund and Triumph Gulf Coast, Inc.,
172 annually. Triumph Gulf Coast, Inc., shall provide to the Auditor
173 General any detail or supplemental data required.
174 Section 4. Subsections (2), (3), (4), (7), and (9) of
175 section 288.8014, Florida Statutes, are amended to read:
176 288.8014 Triumph Gulf Coast, Inc.; organization; board of
178 (2) Triumph Gulf Coast, Inc., shall initially be governed
179 by a five-member 5-member board of directors. Each of the
180 Trustees of the State Board of Administration, the President of
181 the Senate, and the Speaker of the House of Representatives
182 shall each appoint one member from the private sector. As of the
183 effective date of this act, the number of board members is
184 increased to seven, with the President of the Senate and the
185 Speaker of the House of Representatives each appointing an
186 additional member from the private sector in one of the four
187 least populous disproportionately affected counties, as
188 identified by the United States Census Bureau in its April 2016
189 estimates of county populations, to ensure that two such
190 counties are represented on the board. The board of directors
191 shall annually elect a chairperson from among the board’s
192 members. The chairperson may be removed by a majority vote of
193 the members. His or her successor shall be elected to serve for
194 the balance of the removed chairperson’s term. The chairperson
195 is responsible to ensure records are kept of the proceedings of
196 the board of directors and is the custodian of all books,
197 documents, and papers filed with the board; the minutes of
198 meetings of the board; and the official seal of Triumph Gulf
199 Coast, Inc.
200 (3) Notwithstanding s. 20.052(4)(c), each initial
201 appointment to the board of directors by the Board of Trustees
202 of the State Board of Administration shall serve for a term that
203 ends 4 years after the Legislature appropriates funds to Triumph
204 Gulf Coast, Inc. the Recovery Fund. To achieve staggered terms
205 among the members of the board, each initial appointment to the
206 board of directors by the President of the Senate and the
207 Speaker of the House of Representatives shall serve for a term
208 that ends 5 years after the Legislature appropriates funds to
209 Triumph Gulf Coast, Inc. the Recovery Fund. Thereafter, each
210 member of the board of directors shall serve for a term of 4
211 years. A member is not eligible for reappointment to the board; ,
212 except, however, any member appointed to fill a vacancy for a
213 term of 2 years or less may be reappointed for an additional
214 term of 4 years. The initial appointments to the board must be
215 made by November 15, 2013. Vacancies on the board of directors
216 shall be filled by the officer who originally appointed the
217 member. A vacancy that occurs before the scheduled expiration of
218 the term of the member shall be filled for the remainder of the
219 unexpired term.
220 (4) The Legislature determines that it is in the public
221 interest for the members of the board of directors to be subject
222 to the requirements of ss. 112.313, 112.3135, and 112.3143,
223 notwithstanding the fact that the board members are not public
224 officers or employees. For purposes of those sections, the board
225 members shall be considered to be public officers or employees.
226 In addition to the postemployment restrictions of s. 112.313(9),
227 a person appointed to the board of directors must agree to
228 refrain from having any direct interest in any contract,
229 franchise, privilege, project, program, or other benefit arising
230 from an award by Triumph Gulf Coast, Inc., during the term of
231 his or her appointment and for 6 2 years after the termination
232 of such appointment. It is a misdemeanor of the first degree,
233 punishable as provided in s. 775.082 or s. 775.083, for a person
234 to accept appointment to the board of directors in violation of
235 this subsection or to accept a direct interest in any contract,
236 franchise, privilege, project, program, or other benefit granted
237 by Triumph Gulf Coast, Inc., to an awardee within 6 2 years
238 after the termination of his or her service on the board.
239 Further, each member of the board of directors who is not
240 otherwise required to file financial disclosure under s. 8, Art.
241 II of the State Constitution or s. 112.3144 shall file
242 disclosure of financial interests under s. 112.3145.
243 (7) The board of directors shall meet at least quarterly,
244 upon the call of the chairperson or at the request of a majority
245 of the membership, to review the Recovery Fund, establish and
246 review priorities for economic recovery, diversification, and
247 enhancement of the in disproportionately affected counties, and
248 determine use of funds the earnings available. A majority of the
249 members of the board of directors constitutes a quorum. Members
250 may not vote by proxy.
251 (9)(a) Triumph Gulf Coast, Inc., is permitted to hire or
252 contract for all staff necessary to the proper execution of its
253 powers and duties to implement this act. The corporation is
254 required to retain:
255 1. An independent certified public accountant licensed in
256 this state pursuant to chapter 473 to inspect the records of and
257 to annually audit the expenditure of funds the earnings and
258 available principal disbursed by Triumph Gulf Coast, Inc.
259 2. An independent financial advisor to assist Triumph Gulf
260 Coast, Inc., in the development and implementation of a
261 strategic plan consistent with the requirements of this act.
262 3. An economic advisor who will assist in the award
263 process, including the development of priorities, allocation
264 decisions, and the application and process; will assist the
265 board in determining eligibility of award applications and the
266 evaluation and scoring of applications; and will assist in the
267 development of award documentation.
268 2. 4. A legal advisor with expertise in not-for-profit
269 investing and contracting and who is a member of The Florida Bar
270 to assist with contracting and carrying out the intent of this
272 (b) All Triumph Gulf Coast, Inc., shall require all
273 employees of the corporation shall to comply with the code of
274 ethics for public employees under part III of chapter 112.
275 Retained staff under paragraph (a) must agree to refrain from
276 having any direct interest in any contract, franchise,
277 privilege, project, program, or other benefit arising from an
278 award of funds by Triumph Gulf Coast, Inc., during the term of
279 his or her appointment and for 6 2 years after the termination
280 of such appointment.
281 (c) Retained staff under paragraph (a) shall be available
282 to consult with the board of directors and shall attend meetings
283 o f the board of directors. These individuals shall not be
284 permitted to vote on any matter before the board.
285 Section 5. Subsection (2) of section 288.8015, Florida
286 Statutes, is amended to read:
287 288.8015 Board of directors; powers.—In addition to the
288 powers and duties prescribed in chapter 617 and the articles and
289 bylaws adopted in compliance with that chapter, the board of
290 directors may:
291 (2) Make expenditures including any necessary
292 administrative expenditure from earnings consistent with its
295 Under no circumstances may the credit of the State of Florida be
296 pledged on behalf of Triumph Gulf Coast, Inc.
297 Section 6. Subsection (4) of section 288.8016, Florida
298 Statutes, is amended to read:
299 288.8016 Triumph Gulf Coast, Inc.; duties.—Triumph Gulf
300 Coast, Inc., shall have the following duties:
301 (4) Operate in a transparent manner, providing public
302 access to information, notice of meetings, awards, and the
303 status of projects and programs. To this end, Triumph Gulf
304 Coast, Inc., shall maintain a website that provides public
305 access to this information. At least 14 calendar days before
306 approving an award pursuant to s. 288.8017, Triumph Gulf Coast,
307 Inc., shall publish on the website a summary of the project or
308 program and indicate its intent to approve the award.
309 Section 7. Section 288.8017, Florida Statutes, is amended
310 to read:
311 288.8017 Awards.—
312 (1) Triumph Gulf Coast, Inc., shall make awards from
313 available funds earnings and principal derived under s.
314 288.8013(2) to projects or programs that meet the priorities for
315 economic recovery, diversification, and enhancement of the
316 disproportionately affected counties , notwithstanding s. 377.43.
317 Awards may be provided for:
318 (a) Ad valorem tax rate reduction within disproportionately
319 affected counties;
320 (b) Payment of impact fees adopted pursuant to s. 163.31801
321 and imposed within disproportionately affected counties;
322 (c) Administrative funding for economic development
323 organizations located within the disproportionately affected
325 (b) ( d) Local match requirements of s. 288.0655 ss.
326 288.0655, 288.0659, 288.1045, and 288.106 for projects in the
327 disproportionately affected counties;
328 (e) Economic development projects in the disproportionately
329 affected counties;
330 (c) ( f) Public infrastructure projects for construction,
331 expansion, or maintenance which that are shown to enhance
332 economic recovery, diversification, and enhancement of
333 development in the disproportionately affected counties;
334 (d) ( g) Grants to local governments in the
335 disproportionately affected counties to establish and maintain
336 equipment and trained personnel for local action plans of
337 response to respond to disasters, such as plans created for the
338 Coastal Impacts Assistance Program;
339 (e) (h) Grants to support programs of excellence that
340 prepare students for future occupations and careers at K-20
341 institutions that have home campuses in the disproportionately
342 affected counties. Eligible programs include those that increase
343 students’ technology skills and knowledge; encourage industry
344 certifications; provide rigorous, alternative pathways for
345 students to meet high school graduation requirements; strengthen
346 career readiness initiatives; fund high-demand programs of
347 emphasis at the bachelor’s and master’s level designated by the
348 Board of Governors; and, similar to or the same as talent
349 retention programs created by the Chancellor of the State
350 University System and the Commission of Education, encourage
351 students with interest or aptitude for science, technology,
352 engineering, mathematics, and medical disciplines to pursue
353 postsecondary education at a state university or a Florida
354 College System institution within the disproportionately
355 affected counties; and
356 (f) Grants to support programs that provide participants in
357 the disproportionately affected counties with transferrable,
358 sustainable workforce skills that are not confined to a single
359 employer; and
360 (g) ( i ) Grants to the tourism entity created under s.
361 288.1226 for the purpose of advertising and promoting tourism
362 and , Fresh From Florida, and grants to promote workforce and
363 infrastructure, or related content on behalf of one or all of
364 the disproportionately affected counties.
365 (2) Triumph Gulf Coast, Inc., shall establish an
366 application procedure for awards and a scoring process for the
367 selection of projects and programs that have the potential to
368 generate increased economic activity in the disproportionately
369 affected counties, giving priority to projects and programs
371 (a) Generate maximum estimated economic benefits, based on
372 tools and models not generally employed by economic input-output
373 analyses, including cost-benefit, return-on-investment, or
374 dynamic scoring techniques to determine how the long-term
375 economic growth potential of the disproportionately affected
376 counties may be enhanced by the investment.
377 (b) Increase household income in the disproportionately
378 affected counties above national average household income.
379 (c) Expand high growth industries or establish new high
380 growth industries in the region.
381 1. Industries that are supported must have strong growth
382 potential in the disproportionately affected counties.
383 2. An industry’s growth potential is defined based on a
384 detailed review of the current industry trends nationally and
385 the necessary supporting asset base for that industry in the
386 disproportionately affected counties region.
387 (c) (d) Leverage or further enhance key regional assets,
388 including educational institutions, research facilities, and
389 military bases.
390 (d) (e) Partner with local governments to provide funds,
391 infrastructure, land, or other assistance for the project.
392 (f) Have investment commitments from private equity or
393 private venture capital funds.
394 (g) Provide or encourage seed stage investments in start- up
396 (h) Provide advice and technical assistance to companies on
397 restructuring existing management, operations, or production to
398 attract advantageous business opportunities.
399 (e) (i) Benefit the environment, in addition to the economy.
400 (f) (j) Provide outcome measures for programs of excellence
401 support, including terms of intent and metrics.
402 (g) (k) Partner with K-20 educational institutions or school
403 districts located within the disproportionately affected
404 counties as of January 1, 2017.
405 (h) Are recommended by the board of county commissioners of
406 the county in which the project or program will be located.
407 (i) (l) Partner with convention and visitor bureaus, tourist
408 development councils, or chambers of commerce located within the
409 disproportionately affected counties.
410 (3) Triumph Gulf Coast, Inc., may make awards as
411 applications are received or may establish application periods
412 for selection. Awards may not be used to finance 100 percent of
413 any project or program. Triumph Gulf Coast, Inc., may require a
414 one-to-one private-sector match or higher for an award, if
415 applicable and deemed prudent by the board of directors. An
416 awardee may not receive all of the funds earnings or available
417 principal in any given year. An award may supplement but may not
418 supplant existing funding sources.
419 (4) A contract executed by Triumph Gulf Coast, Inc., with
420 an awardee must include provisions requiring a performance
421 report on the contracted activities, must account for the proper
422 use of funds provided under the contract, and must include
423 provisions for recovery of awards in the event the award was
424 based upon fraudulent information or the awardee is not meeting
425 the performance requirements of the award. Awardees must
426 regularly report to Triumph Gulf Coast, Inc., the expenditure of
427 funds and the status of the project or program on a schedule
428 determined by the corporation.
429 Section 8. Section 377.43, Florida Statutes, is repealed.
430 Section 9. The revision made by this act to s. 288.8014(4),
431 Florida Statutes, applies only to persons who are appointed to
432 serve on the board of directors of Triumph Gulf Coast, Inc., on
433 or after July 1, 2017.
434 Section 10. The Division of Law Revision and Information is
435 directed to replace the phrase “the effective date of this act”
436 where it occurs in this act with the date this act takes effect.
437 Section 11. This act shall take effect upon becoming a law.
439 ================= T I T L E A M E N D M E N T ================
440 And the title is amended as follows:
441 Delete everything before the enacting clause
442 and insert:
443 A bill to be entitled
444 An act relating to the Gulf Coast Economic Corridor;
445 amending s. 288.80, F.S.; conforming provisions to
446 changes made by the act; amending s. 288.8012, F.S.;
447 defining and redefining terms; amending s. 288.8013,
448 F.S.; deleting the creation and identification of
449 purposes of the recovery fund; requiring a specified
450 percentage of payments made to the state under a
451 specified settlement of litigation related to the
452 Deepwater Horizon oil spill be immediately transferred
453 from the General Revenue Fund to the Triumph Gulf
454 Coast Trust Fund; providing an appropriation and for
455 the transfer of funds; providing requirements for the
456 allocation of funds; requiring Triumph Gulf Coast,
457 Inc., to make awards for projects or programs within
458 disproportionately affected counties based on
459 specified minimum allocations; requiring each board of
460 county commissioners for such counties to solicit
461 certain projects and programs from certain elected
462 local governing boards; requiring such boards of
463 county commissioners to provide Triumph Gulf Coast,
464 Inc., with a list of projects and programs that are
465 consistent with certain awards and priorities;
466 providing a requirement for the list; providing for
467 the disposition of any remaining funds; limiting
468 administrative costs; requiring interest in the
469 Triumph Gulf Coast, Inc., trust account to be
470 deposited into the Triumph Gulf Coast Trust Fund;
471 revising provisions related to the investment of funds
472 in the trust account; limiting the annual salary of
473 employees or contracted staff of Triumph Gulf Coast,
474 Inc.; revising annual reporting requirements; amending
475 s. 288.8014, F.S.; expanding the membership of the
476 board of directors; specifying conditions for
477 appointing additional board members; deleting
478 references to the recovery fund; deleting obsolete
479 language; revising conflict of interest restrictions
480 imposed on board members of Triumph Gulf Coast, Inc.;
481 removing the requirement that Triumph Gulf Coast,
482 Inc., retain an independent financial advisor and an
483 economic advisor; revising provisions relating to
484 conflict of interest restrictions imposed on retained
485 staff; amending s. 288.8015, F.S.; conforming a
486 provision to changes made by the act; amending s.
487 288.8016, F.S.; requiring Triumph Gulf Coast, Inc., to
488 publish on its website specified information before
489 making an award; amending s. 288.8017, F.S.;
490 conforming provisions to changes made by the act;
491 revising provisions governing the uses of awards from
492 Triumph Gulf Coast, Inc.; repealing s. 377.43, F.S.,
493 relating to the disbursement of funds received for
494 damages caused by the Deepwater Horizon oil spill;
495 specifying that certain conflict of interest
496 restrictions imposed on board members of the Triumph
497 Gulf Coast, Inc., apply to members appointed on or
498 after a specified date; providing a directive to the
499 Division of Law Revision and Information; providing an
500 effective date.