Florida Senate - 2017                              CS for SB 364
       By the Committee on Commerce and Tourism; and Senators Gainer,
       Broxson, and Montford
       577-02381-17                                           2017364c1
    1                        A bill to be entitled                      
    2         An act relating to the Recovery Fund for the Deepwater
    3         Horizon incident; amending s. 288.8012, F.S.; defining
    4         the term “settlement agreement”; amending s. 288.8013,
    5         F.S.; revising the funding source of the principal of
    6         the Recovery Fund for the Deepwater Horizon incident;
    7         requiring that certain funds be transferred to the
    8         Recovery Fund within a specified timeframe; deleting a
    9         requirement that the Recovery Fund be maintained as a
   10         long-term, stable source of revenue, for a specified
   11         period; requiring Triumph Gulf Coast, Inc., to consult
   12         with the State Board of Administration and to invest
   13         moneys from the settlement agreement in certain funds;
   14         revising the limit on administrative costs; deleting
   15         provisions requiring the board of directors of Triumph
   16         Gulf Coast, Inc., to formulate a specified investment
   17         policy for the Recovery Fund; deleting provisions
   18         requiring Triumph Gulf Coast, Inc., to competitively
   19         procure one or more money managers to invest the
   20         principal of the Recovery Fund; deleting a provision
   21         limiting costs and fees for investment services and
   22         requiring such costs and fees to be deducted from
   23         earnings as administrative costs; amending s.
   24         288.8014, F.S.; increasing the number of members of
   25         the board of directors of Triumph Gulf Coast, Inc., as
   26         of a specified date; providing for the appointment of
   27         the new members; requiring that the new members be
   28         residents of certain disproportionately affected
   29         counties; revising the duties of the independent
   30         certified public accountant that Triumph Gulf Coast,
   31         Inc., is required to retain; deleting provisions
   32         requiring Triumph Gulf Coast, Inc., to retain an
   33         independent financial advisor and an economic advisor;
   34         amending s. 288.8015, F.S.; deleting a provision
   35         specifying that expenditures made by the board are
   36         made from earnings; amending s. 288.8017, F.S.;
   37         revising the source for awards made by Triumph Gulf
   38         Coast, Inc.; conforming a provision to changes made by
   39         the act; requiring that K-20 institutions have a
   40         campus, rather than their home campus, in a
   41         disproportionately affected county as a condition of
   42         eligibility to receive certain grants; revising annual
   43         restrictions on awards; repealing s. 377.43, F.S.,
   44         relating to the disbursement of funds received for
   45         damages caused by the Deepwater Horizon oil spill;
   46         providing a directive to the Division of Law Revision
   47         and Information; providing an effective date.
   49  Be It Enacted by the Legislature of the State of Florida:
   51         Section 1. Subsection (5) is added to section 288.8012,
   52  Florida Statutes, to read:
   53         288.8012 Definitions.—As used in ss. 288.80-288.8017, the
   54  term:
   55         (5) “Settlement agreement” means the agreement between the
   56  gulf states and the BP entities with respect to economic claims
   57  arising from the Deepwater Horizon incident.
   58         Section 2. Subsections (2), (3), and (4) of section
   59  288.8013, Florida Statutes, are amended to read:
   60         288.8013 Triumph Gulf Coast, Inc.; Recovery Fund; creation;
   61  investment.—
   62         (2)(a) Triumph Gulf Coast, Inc., must create and administer
   63  the Recovery Fund for the benefit of the disproportionately
   64  affected counties. The principal of the fund shall derive from
   65  75 percent of all moneys received by the state pursuant to the
   66  settlement agreement funds recovered by the Attorney General for
   67  economic damage to the state resulting from the Deepwater
   68  Horizon disaster, after payment of reasonable and necessary
   69  attorney fees, costs, and expenses, including such attorney
   70  fees, costs, and expenses pursuant to s. 16.0155.
   71         (b)1. After reasonable and necessary payment of attorney
   72  fees, costs, and related expenses, 75 percent of the remaining
   73  moneys received by the state before June 30, 2017, pursuant to
   74  the settlement agreement is appropriated to Triumph Gulf Coast,
   75  Inc., and shall be transferred to the Recovery Fund no later
   76  than August 1, 2017.
   77         2. Seventy-five percent of the moneys received by the state
   78  pursuant to the settlement agreement on or after July 1, 2017,
   79  is appropriated to the Triumph Gulf Coast, Inc., and shall be
   80  transferred to the Recovery Fund no later than 30 days after
   81  such funds are received by the state.
   82         (3) The Recovery Fund must be maintained as a long-term and
   83  stable source of revenue, which shall decline over a 30-year
   84  period in equal amounts each year. Triumph Gulf Coast, Inc.,
   85  shall establish a trust account at a federally insured financial
   86  institution to hold funds and make deposits and payments, and
   87  shall consult with the State Board of Administration and invest
   88  moneys from the settlement agreement in appropriate State Board
   89  of Administration funds. Earnings generated by investments and
   90  interest of the fund, plus the amount of principal available
   91  each year, shall be available to make awards pursuant to this
   92  act and pay administrative costs. Earnings must shall be
   93  accounted for separately from principal funds set forth in
   94  subsection (2). Administrative costs are limited to 0.75 2.25
   95  percent of the principal earnings in a calendar year.
   96  Administrative costs include payment of investment fees, travel
   97  and per diem expenses of board members, audits, salary or other
   98  costs for employed or contracted staff, including required staff
   99  under s. 288.8014(9), and other allowable costs. Triumph Gulf
  100  Coast, Inc., shall cause an annual audit to be conducted of the
  101  investments of the Recovery Fund by the independent certified
  102  public accountant retained as required in s. 288.8014. Any funds
  103  remaining in the Recovery Fund after 30 years shall revert to
  104  the State Treasury.
  105         (4) Triumph Gulf Coast, Inc., shall invest and reinvest the
  106  principal of the Recovery Fund in accordance with s. 617.2104,
  107  in such a manner not to subject the funds to state or federal
  108  taxes, and consistent with an investment policy statement
  109  adopted by the corporation.
  110         (a) The board of directors shall formulate an investment
  111  policy governing the investment of the principal of the Recovery
  112  Fund. The policy shall pertain to the types, kinds, or nature of
  113  investment of any of the funds, and any limitations, conditions
  114  or restrictions upon the methods, practices, or procedures for
  115  investment, reinvestments, purchases, sales, or exchange
  116  transactions, provided such policies shall not conflict with nor
  117  be in derogation of any state constitutional provision or law.
  118  The policy shall be formulated with the advice of the financial
  119  advisor in consultation with the State Board of Administration.
  120         (b) Triumph Gulf Coast, Inc., must competitively procure
  121  one or more money managers, under the advice of the financial
  122  advisor in consultation with the State Board of Administration,
  123  to invest the principal of the Recovery Fund. The applicant
  124  manager or managers may not include representatives from the
  125  financial institution housing the trust account for the Recovery
  126  Fund. The applicant manager or managers must present a plan to
  127  invest the Recovery Fund to maximize earnings while prioritizing
  128  the preservation of Recovery Fund principal. Any agreement with
  129  a money manager must be reviewed by Triumph Gulf Coast, Inc.,
  130  for continuance at least every 5 years. Plans should include
  131  investment in technology and growth businesses domiciled in, or
  132  that will be domiciled in, this state or businesses whose
  133  principal address is in this state.
  134         (c) Costs and fees for investment services shall be
  135  deducted from the earnings as administrative costs. Fees for
  136  investment services shall be no greater than 150 basis points.
  137         (d) Annually, Triumph Gulf Coast, Inc., shall cause an
  138  audit to be conducted of the investment of the Recovery Fund by
  139  the independent certified public accountant retained in s.
  140  288.8014. The expense of such audit shall be paid from earnings
  141  for administrative purposes.
  142         Section 3. Subsections (2) and (9) of section 288.8014,
  143  Florida Statutes, are amended to read:
  144         288.8014 Triumph Gulf Coast, Inc.; organization; board of
  145  directors.—
  146         (2) Triumph Gulf Coast, Inc., initially shall be governed
  147  by a five-member 5-member board of directors. Each of the
  148  Trustees of the State Board of Administration, the President of
  149  the Senate, and the Speaker of the House of Representatives
  150  shall each appoint one member from the private sector. As of the
  151  effective date of this act, the number of board members
  152  increases to seven, with the President of the Senate and the
  153  Speaker of the House of Representatives each appointing an
  154  additional private sector member from one of the four least
  155  populous disproportionately affected counties as identified by
  156  the United States Census Bureau in its March 2017 estimates of
  157  county population, so that two such counties are represented on
  158  the board. The board of directors shall annually elect a
  159  chairperson from among the board’s members. The chairperson may
  160  be removed by a majority vote of the members. His or her
  161  successor shall be elected to serve for the balance of the
  162  removed chairperson’s term. The chairperson is responsible to
  163  ensure records are kept of the proceedings of the board of
  164  directors and is the custodian of all books, documents, and
  165  papers filed with the board; the minutes of meetings of the
  166  board; and the official seal of Triumph Gulf Coast, Inc.
  167         (9)(a) Triumph Gulf Coast, Inc., is permitted to hire or
  168  contract for all staff necessary to the proper execution of its
  169  powers and duties to implement this act. The corporation is
  170  required to retain:
  171         1. An independent certified public accountant licensed in
  172  this state pursuant to chapter 473 to inspect the records of and
  173  to annually audit the expenditure of the funds earnings and
  174  available principal disbursed by Triumph Gulf Coast, Inc.; and
  175         2. An independent financial advisor to assist Triumph Gulf
  176  Coast, Inc., in the development and implementation of a
  177  strategic plan consistent with the requirements of this act.
  178         3. An economic advisor who will assist in the award
  179  process, including the development of priorities, allocation
  180  decisions, and the application and process; will assist the
  181  board in determining eligibility of award applications and the
  182  evaluation and scoring of applications; and will assist in the
  183  development of award documentation.
  184         2.4. A legal advisor with expertise in not-for-profit
  185  investing and contracting and who is a member of The Florida Bar
  186  to assist with contracting and carrying out the intent of this
  187  act.
  188         (b) Triumph Gulf Coast, Inc., shall require all employees
  189  of the corporation to comply with the code of ethics for public
  190  employees under part III of chapter 112. Retained staff under
  191  paragraph (a) must agree to refrain from having any direct
  192  interest in any contract, franchise, privilege, project,
  193  program, or other benefit arising from an award by Triumph Gulf
  194  Coast, Inc., during the term of his or her appointment and for 2
  195  years after the termination of such appointment.
  196         (c) Retained staff under paragraph (a) shall be available
  197  to consult with the board of directors and shall attend meetings
  198  of the board of directors. These individuals shall not be
  199  permitted to vote on any matter before the board.
  200         Section 4. Subsection (2) of section 288.8015, Florida
  201  Statutes, is amended to read:
  202         288.8015 Board of directors; powers.—In addition to the
  203  powers and duties prescribed in chapter 617 and the articles and
  204  bylaws adopted in compliance with that chapter, the board of
  205  directors may:
  206         (2) Make expenditures including any necessary
  207  administrative expenditure from earnings consistent with its
  208  powers.
  210  Under no circumstances may the credit of the State of Florida be
  211  pledged on behalf of Triumph Gulf Coast, Inc.
  212         Section 5. Subsections (1) and (3) of section 288.8017,
  213  Florida Statutes, are amended to read:
  214         288.8017 Awards.—
  215         (1) Triumph Gulf Coast, Inc., shall make awards from
  216  available funds earnings and principal derived under s.
  217  288.8013(2) to projects or programs that meet the priorities for
  218  economic recovery, diversification, and enhancement of the
  219  disproportionately affected counties, notwithstanding s. 377.43.
  220  Awards may be provided for:
  221         (a) Ad valorem tax reduction within disproportionately
  222  affected counties;
  223         (b) Payment of impact fees adopted pursuant to s. 163.31801
  224  and imposed within disproportionately affected counties;
  225         (c) Administrative funding for economic development
  226  organizations located within the disproportionately affected
  227  counties;
  228         (d) Local match requirements of ss. 288.0655, 288.0659,
  229  288.1045, and 288.106 for projects in the disproportionately
  230  affected counties;
  231         (e) Economic development projects in the disproportionately
  232  affected counties;
  233         (f) Infrastructure projects that are shown to enhance
  234  economic development in the disproportionately affected
  235  counties;
  236         (g) Grants to local governments in the disproportionately
  237  affected counties to establish and maintain equipment and
  238  trained personnel for local action plans of response to respond
  239  to disasters, such as plans created for the Coastal Impacts
  240  Assistance Program;
  241         (h) Grants to support programs of excellence that prepare
  242  students for future occupations and careers at K-20 institutions
  243  that have home campuses in the disproportionately affected
  244  counties. Eligible programs include those that increase
  245  students’ technology skills and knowledge; encourage industry
  246  certifications; provide rigorous, alternative pathways for
  247  students to meet high school graduation requirements; strengthen
  248  career readiness initiatives; fund high-demand programs of
  249  emphasis at the bachelor’s and master’s level designated by the
  250  Board of Governors; and, similar to or the same as talent
  251  retention programs created by the Chancellor of the State
  252  University System and the Commission of Education, encourage
  253  students with interest or aptitude for science, technology,
  254  engineering, mathematics, and medical disciplines to pursue
  255  postsecondary education at a state university within the
  256  disproportionately affected counties; and
  257         (i) Grants to the tourism entity created under s. 288.1226
  258  for the purpose of advertising and promoting tourism, Fresh From
  259  Florida, or related content on behalf of one or all of the
  260  disproportionately affected counties.
  261         (3) Triumph Gulf Coast, Inc., may make awards as
  262  applications are received or may establish application periods
  263  for selection. Awards may not be used to finance 100 percent of
  264  any project or program. Triumph Gulf Coast, Inc., may require a
  265  one-to-one private-sector match or higher for an award, if
  266  applicable and deemed prudent by the board of directors. An
  267  awardee may not receive all of the earnings or available funds
  268  principal in any given year.
  269         Section 6. Section 377.43, Florida Statutes, is repealed.
  270         Section 7. The Division of Law Revision and Information is
  271  directed to replace the phrase “the effective date of this act”
  272  where it occurs in this act with the date the act becomes
  273  effective.
  274         Section 8. This act shall take effect upon becoming a law.