Florida Senate - 2020                CS for CS for CS for SB 666
       By the Committees on Rules; Governmental Oversight and
       Accountability; and Commerce and Tourism; and Senator Mayfield
       595-04237-20                                           2020666c3
    1                        A bill to be entitled                      
    2         An act relating to the Florida Development Finance
    3         Corporation; amending s. 20.60, F.S.; requiring the
    4         executive director of the Department of Economic
    5         Opportunity to serve as a member of the board of
    6         directors of the Florida Development Finance
    7         Corporation; authorizing the executive director to
    8         designate a department employee to serve in this
    9         capacity; requiring that the annual report of the
   10         corporation be incorporated into the department’s
   11         annual report on the condition of the business climate
   12         and economic development in the state; requiring the
   13         department to develop performance standards for the
   14         corporation and to include certain information
   15         relating to the standards in the department’s annual
   16         report; amending s. 288.9604, F.S.; revising the
   17         membership of the board of directors of the
   18         corporation; requiring that the director of the
   19         Division of Bond Finance of the State Board of
   20         Administration, or his or her designee, serve on the
   21         board of directors of the corporation; making
   22         conforming changes; authorizing meetings of the
   23         directors to be conducted by teleconference; providing
   24         for future repeals; requiring the chair and vice chair
   25         of the board of directors of the corporation to serve
   26         as regular members of the board after a specified
   27         date; providing construction; amending s. 288.9605,
   28         F.S.; providing for the electronic execution and
   29         delivery of certain documents executed by the
   30         corporation; amending s. 288.9606, F.S.; prohibiting
   31         certain bonds, notes, and other forms of indebtedness
   32         from exceeding a specified amount of time; specifying
   33         that certain bonds are payable solely from certain
   34         revenues; providing requirements for such bonds;
   35         amending s. 288.9610, F.S.; revising the entities to
   36         which the corporation is required to submit an annual
   37         report containing specified information; creating s.
   38         288.9619, F.S.; requiring that certain conflicts of
   39         interest be publicly disclosed to the corporation and
   40         set forth in the corporation’s minutes; prohibiting a
   41         director with a conflict of interest from taking
   42         certain actions; providing an effective date.
   44  Be It Enacted by the Legislature of the State of Florida:
   46         Section 1. Paragraph (c) is added to subsection (9) of
   47  section 20.60, Florida Statutes, and paragraph (b) of subsection
   48  (10) and subsection (11) of that section are amended, to read:
   49         20.60 Department of Economic Opportunity; creation; powers
   50  and duties.—
   51         (9) The executive director shall:
   52         (c) Serve as a member of the board of directors of the
   53  Florida Development Finance Corporation. The executive director
   54  may designate an employee of the department to serve in this
   55  capacity.
   56         (10) The department, with assistance from Enterprise
   57  Florida, Inc., shall, by November 1 of each year, submit an
   58  annual report to the Governor, the President of the Senate, and
   59  the Speaker of the House of Representatives on the condition of
   60  the business climate and economic development in the state.
   61         (b) The report must incorporate annual reports of other
   62  programs, including:
   63         1. Information provided by the Department of Revenue under
   64  s. 290.014.
   65         2. Information provided by enterprise zone development
   66  agencies under s. 290.0056 and an analysis of the activities and
   67  accomplishments of each enterprise zone.
   68         3. The Economic Gardening Business Loan Pilot Program
   69  established under s. 288.1081 and the Economic Gardening
   70  Technical Assistance Pilot Program established under s.
   71  288.1082.
   72         4. A detailed report of the performance of the Black
   73  Business Loan Program and a cumulative summary of quarterly
   74  report data required under s. 288.714.
   75         5. The Rural Economic Development Initiative established
   76  under s. 288.0656.
   77         6. The Florida Unique Abilities Partner Program.
   78         7.A detailed report of the performance of the Florida
   79  Development Finance Corporation and a summary of the
   80  corporation’s report required under s. 288.9610.
   81         (11) The department shall establish annual performance
   82  standards for Enterprise Florida, Inc., CareerSource Florida,
   83  Inc., the Florida Tourism Industry Marketing Corporation, and
   84  Space Florida, and the Florida Development Finance Corporation
   85  and report annually on how these performance measures are being
   86  met in the annual report required under subsection (10).
   87         Section 2. Subsections (2), (3), and (4) of section
   88  288.9604, Florida Statutes, are amended, and subsection (5) is
   89  added to that section, to read:
   90         288.9604 Creation of the authority.—
   91         (2) The board of directors of the corporation shall consist
   92  of seven directors. The executive director of the department, or
   93  his or her designee, shall serve as chair of the board of
   94  directors of the corporation. The director of the Division of
   95  Bond Finance of the State Board of Administration, or his or her
   96  designee, shall serve as a director of the board of directors of
   97  the corporation. The Governor, subject to confirmation by the
   98  Senate, shall appoint the remaining five directors of the board
   99  of directors of the corporation, who shall be five in number.
  100  The terms of office for the appointed directors shall be for 4
  101  years from the date of their appointment. A vacancy occurring
  102  during a term of an appointed director shall be filled for the
  103  unexpired term. A director shall be eligible for reappointment.
  104  At least three of the appointed directors of the corporation
  105  shall have experience in finance be bankers who have been
  106  selected by the Governor from a list of bankers who were
  107  nominated by Enterprise Florida, Inc., and one of the directors
  108  shall have experience in be an economic development specialist.
  109         (3)(a)1. A director may not receive compensation for his or
  110  her services, but is entitled to necessary expenses, including
  111  travel expenses, incurred in the discharge of his or her duties.
  112  Each appointed director shall hold office until his or her
  113  successor has been appointed.
  114         2. Directors are subject to ss. 112.313(1)-(8), (10), (12),
  115  and (15); 112.3135; and 112.3143(2). For purposes of applying
  116  ss. 112.313(1)-(8), (10), (12), and (15); 112.3135; and
  117  112.3143(2) to activities of directors, directors shall be
  118  considered public officers and the corporation shall be
  119  considered their agency.
  120         (b) The powers of the corporation shall be exercised by the
  121  directors thereof. A majority of the directors constitutes a
  122  quorum for the purposes of conducting business and exercising
  123  the powers of the corporation and for all other purposes.
  124  Meetings of the directors may be conducted by teleconference.
  125  Action may be taken by the corporation upon a vote of a majority
  126  of the directors present, unless in any case the bylaws require
  127  a larger number. Any person may be appointed as director if he
  128  or she resides, or is engaged in business, which means owning a
  129  business, practicing a profession, or performing a service for
  130  compensation or serving as an officer or director of a
  131  corporation or other business entity so engaged, within the
  132  state.
  133         (c) The directors of the corporation shall annually elect,
  134  by a majority vote, one of their members as chair and one as
  135  vice chair. The corporation may employ a president, technical
  136  experts, and such other agents and employees, permanent and
  137  temporary, as it requires and determine their qualifications,
  138  duties, and compensation. For such legal services as it
  139  requires, the corporation may employ or retain its own counsel
  140  and legal staff.
  141         (4) The board may remove an appointed a director for
  142  inefficiency, neglect of duty, or misconduct in office. Such
  143  director may be removed only after a hearing and only if he or
  144  she has been given a copy of the charges at least 10 days before
  145  such hearing and has had an opportunity to be heard in person or
  146  by counsel. The removal of a director shall create a vacancy on
  147  the board which shall be filled pursuant to subsection (2).
  148         (5)This section is repealed July 1, 2023, and July 1 of
  149  every fourth year thereafter, unless reviewed and saved from
  150  repeal by the Legislature.
  151         Section 3. In order to implement the changes made by this
  152  act to s. 288.9604, Florida Statutes, the chair and vice chair
  153  of the board of directors of the Florida Development Finance
  154  Corporation as of June 30, 2020, shall serve as regular members
  155  beginning July 1, 2020. Nothing in this act may be construed to
  156  affect the terms of the directors serving on the board on July
  157  1, 2020.
  158         Section 4. Subsection (3) is added to section 288.9605,
  159  Florida Statutes, to read:
  160         288.9605 Corporation powers.—
  161         (3) Documents, agreements, and instruments executed by the
  162  corporation may be executed and delivered in accordance with the
  163  Electronic Signature Act of 1996.
  164         Section 5. Subsections (1) and (2) of section 288.9606,
  165  Florida Statutes, are amended to read:
  166         288.9606 Issue of revenue bonds.—
  167         (1) When authorized by a public agency pursuant to s.
  168  163.01(7), the corporation has power in its corporate capacity,
  169  in its discretion, to issue revenue bonds or other evidences of
  170  indebtedness which a public agency has the power to issue, from
  171  time to time to finance the undertaking of any purpose of this
  172  act, including, without limiting the generality thereof, the
  173  payment of principal and interest upon any advances for surveys
  174  and plans or preliminary loans, and has the power to issue
  175  refunding bonds for the payment or retirement of bonds
  176  previously issued. Bonds issued pursuant to this section shall
  177  bear the name “Florida Development Finance Corporation Revenue
  178  Bonds.” The security for such bonds may be based upon such
  179  revenues as are legally available. In anticipation of the sale
  180  of such revenue bonds, the corporation may issue bond
  181  anticipation notes and may renew such notes from time to time,
  182  but the maximum maturity of any such note, including renewals
  183  thereof, may not exceed 5 years from the date of issuance of the
  184  original note. Such notes shall be paid from any revenues of the
  185  corporation available therefor and not otherwise pledged or from
  186  the proceeds of sale of the revenue bonds in anticipation of
  187  which they were issued. Any bond, note, or other form of
  188  indebtedness issued pursuant to this act may not exceed 35 years
  189  from their respective dates of issuance shall mature no later
  190  than the end of the 30th fiscal year after the fiscal year in
  191  which the bond, note, or other form of indebtedness was issued.
  192         (2) Bonds issued under this section do not constitute an
  193  indebtedness within the meaning of any constitutional or
  194  statutory debt limitation or restriction, and are not subject to
  195  the provisions of any other law or charter relating to the
  196  authorization, issuance, or sale of bonds. Bonds issued under
  197  the provisions of this act are declared to be for an essential
  198  public and governmental purpose. Bonds issued under this act,
  199  the interest on which is exempt from income taxes of the United
  200  States, together with interest thereon and income therefrom, are
  201  exempted from all taxes, except those taxes imposed by chapter
  202  220, on interest, income, or profits on debt obligations owned
  203  by corporations. Bonds issued under this part are not a debt,
  204  liability, or obligation of the state or any subdivision
  205  thereof, or a pledge of faith and credit of the corporation or
  206  of the state or of any such political subdivision thereof, but
  207  are payable solely from the revenues provided therefor. Each
  208  bond issued under this part shall contain on the face thereof a
  209  statement to the effect that the corporation is not obligated to
  210  pay the same or interest thereon from the revenues and proceeds
  211  pledged therefor, and that the faith and credit or the taxing
  212  power of the corporation or of the state or of any political
  213  subdivision thereof is not pledged to the payment of the
  214  principal of or the interest on such bonds.
  215         Section 6. Section 288.9610, Florida Statutes, is amended
  216  to read:
  217         288.9610 Annual reports of Florida Development Finance
  218  Corporation.—On or before 90 days after the close of the Florida
  219  Development Finance Corporation’s fiscal year, the corporation
  220  shall submit to the Governor, the Legislature, the Auditor
  221  General, the Department of Economic Opportunity, and the
  222  governing body of each public entity for which the corporation
  223  issues revenue bonds pursuant to s. 288.9606 or with which it
  224  has entered into an interlocal agreement a complete and detailed
  225  report setting forth:
  226         (1) The results of any audit conducted pursuant to s.
  227  11.45.
  228         (2) The activities, operations, and accomplishments of the
  229  Florida Development Finance Corporation, including the number of
  230  businesses assisted by the corporation.
  231         (3) Its assets, liabilities, income, and operating expenses
  232  at the end of its most recent fiscal year, including a
  233  description of all of its outstanding revenue bonds.
  234         Section 7. Section 288.9619, Florida Statutes, is created
  235  to read:
  236         288.9619Conflicts of interest.—If any director has a
  237  direct or indirect interest associated with any party to an
  238  application on which the corporation has taken or will take
  239  action in exercising its power for the issuance of revenue bonds
  240  or other evidences of indebtedness, such interest must be
  241  publicly disclosed to the corporation and set forth in the
  242  minutes of the corporation. The director that has such interest
  243  may not participate in any action by the corporation with
  244  respect to such party and application.
  245         Section 8. This act shall take effect July 1, 2020.