State Sen. Jeff Brandes‘s new economic development proposal would continue operations of the embattled Enterprise Florida and state Department of Economic Opportunity, but on tight leashes.
Senate Bills 1110 and 1112 spell out a new way of doing business for two of Florida’s major economic development programs that have been under fire for accountability, particularly through their spending and penchants for luring out-of-state business with incentives in cases that go awry.
Brandes’s bills focus more on fostering small businesses and startups already in Florida, with tighter controls on EFI’s spending and salaries. That includes creating a grant program for new business incubators and accelerators.
The plan behind the bills calls for full funding for Gov. Rick Scott‘s budget recommendations for Enterprise Florida and protection for current incentive programs. After that, though the rules will change.
Brandes’s bills could become the counter offer to what may come out of the House of Representatives, where Speaker Richard Corcoran is targeting Enterprise Florida for elimination due to concerns over its lack of accountability. House Bill 7005, introduced Tuesday, would abolish Enterprise Florida and strip to bare-bones another state-chartered economic development corporation, VISIT Florida.
Brandes is calling for redirection for Enterprise Florida. It does not address VISIT Florida.
“The focus of economic development should be on Florida’s small businesses,” Brandes stated in a news release. “Fostering a startup culture in our state and encouraging small business development will create a better ecosystem where opportunity can thrive. This legislation provides greater oversight and safeguards over our current economic development programs. This bill recasts our focus on new businesses that breathe the entrepreneurial spirit and diversify Florida’s economy.”
Among the proposals, Brandes’s bills would:
— Require the return of $117 million currently held in escrow for the Quick Action Closing (QAC) Fund to the State Economic Enhancement and Development (SEED) to increase the rate of return on those funds.
— Sanction businesses that relocate from the state within three years of receiving final incentive payments, and prohibit the Department of Economic Opportunity (DEO) from making material amendments to incentive contracts.
— Restructure Enterprise Florida Inc.’s board to be broader based, including reserving seats for the president of CareerSource Florida and someone from the Small Business Development Network, and requiring it to include at least one member with expertise in rural economic development.
— Prohibit any employees at Enterprise Florida from being paid more than the governor, and restricting bonuses, while requiring Senate confirmation for the president of Enterprise Florida.
— Establish a “Startup Florida Grant Program” within DEO, providing $50 million per year for the development and operation of small business incubators and accelerators throughout the state. The grants would be limited to $5 million a year.
— Establish the Small Business Information Center (SBIC) within the Small Business Development Center (SBDC) Network Lead Center of the University of West Florida. It would serve as a clearinghouse for small businesses seeking help from DEO.
— Require the DOE to provide, to the governor and the Florida Legislature, annual reports on the estimated contractual obligations of the state’s Quick Action Closing Fund.
— Require two-thirds board votes for any contracts involving any board members who might have conflicts of interest with the companies involved.
— Limiting new incentive contracts to ten years.