HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/CS/HB 1209 Economic Development
SPONSOR(S): Commerce Committee, Ways & Means Committee, Regulatory Reform & Economic
Development Subcommittee, Shoaf and others
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 15 Y, 0 N, As CS Walsh Anstead
Subcommittee
2) Ways & Means Committee 22 Y, 0 N, As CS Berg Aldridge
3) Commerce Committee 17 Y, 0 N, As CS Walsh Hamon
SUMMARY ANALYSIS
Related to agreements funded with federal or state assistance, the bill requires an agency agreement that
provides state of federal financial assistance to a recipient or subrecipient to include a provision allowing the
agency to pay to the county or municipality for verified and eligible performance.
Related to the Regional Rural Development Grants Program, the bill:
Removes the match requirements.
Removes the requirement for local governments and private businesses to make financial or in-kind
commitments to the regional organization.
Related to the Rural Infrastructure Fund, the bill:
Allows DEO to award grants for up to 75 percent of the total infrastructure project cost.
Allows DEO to award grants for up to 100 percent of the total infrastructure project cost for a project
located in a rural community or a rural area of opportunity, if the county is also fiscally constrained.
Removes the requirement related to infrastructure feasibility studies and other infrastructure planning
activities that grants awarded be limited to 30 percent of the total project cost.
Related to the Florida Development Finance Corporation, the bill:
Removes the repeal of the corporation in current law.
Provides that after July 1, 2023, the corporation may not establish any new residential Property
Assessed Clean Energy (PACE) agreements.
Related to Triumph Gulf Coast, Inc., the bill:
Specifies that awards for public infrastructure projects may include projects for workforce housing.
Defines workforce housing as rented or leased housing for residents of the eight disproportionately
affected counties.
Related to the Everglades Restoration Agricultural Community Employment Training Program, the bill:
Provides definitions and changes the phrase “areas of high agricultural unemployment” to “Everglades
Agricultural Area and rural areas of opportunity.”
Specifies that DEO, must prioritize grants under the Everglades Restoration Agricultural Community
Employment Training Program that assist training programs located in Rural Areas of Opportunity
within a certain area.
The bill provides an effective date of July 1, 2023.
The bill does not impact state or local government revenues or expenditures.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 4/19/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Agreements Funded with Federal or State Assistance
Present Situation
Current law requires an agency agreement that provides state financial assistance to a recipient or
subrecipient,1 or that provides federal financial assistance to a subrecipient, 2 to include the following:
A provision specifying scope of work that clearly establishes the tasks the recipient or
subrecipient is required to perform;
A provision dividing the agreement into quantifiable units of deliverables that must be received
and accepted in writing by the agency before payment. Each deliverable must be directly
related to the scope of work and must specify the required minimum level of service to be
performed and the criteria for evaluating the successful completion of each deliverable;
A provision specifying the financial consequences that apply if the recipient or subrecipient fails
to perform the minimum level of service required in the agreement. The provision can be
excluded in specified situations;
A provision specifying that a recipient or subrecipient of federal or state financial assistance
may expend funds only for allowable costs resulting from obligations incurred during the
specified agreement period;
A provision specifying that any balance of unobligated funds which has been advanced or paid
must be refunded to the state agency;
A provision specifying that any funds paid in excess of the amount to which the recipient or
subrecipient is entitled must be refunded to the state agency; and
Any additional information required pursuant to the Florida Single Audit Act. 3
Effect of the Bill
Related to agreements funded with federal or state assistance, the bill requires an agency agreement
that provides state financial assistance to a recipient or subrecipient, or that provides federal financial
assistance to a subrecipient, to include a provision which allows the agency to provide for the payment
of invoices to the county or municipality for verified and eligible performance, if the performance
satisfies the terms and conditions set forth in the agreement. The bill further provides that this
requirement is included to alleviate the financial hardships that certain rural counties and municipalities
encounter when administering agreements, and the administering agency shall utilize the section
based on financial hardship.
Regional Rural Development Grants Program
Present Situation
The Regional Rural Development Grants Program was established to provide funding, through
matching grants, to build the professional capacity of regionally based economic development
organizations located in rural communities. The concept of building the “professional capacity” of an
economic development organization includes hiring professional staff to develop, deliver, and provide
economic development professional services. Professional services include technical assistance,
education and leadership development, marketing, and project recruitment.4
1 Section 215.97, F.S., defines a “subrecipient” as a nonstate entity that receives state financial assistance through
another nonstate entity.
2 As defined by applicable United States Office of Management and Budget circulars.
3 S. 215.971(1)(a)-(g), F.S.
4 S. 288.018(1)(b), F.S.
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Applications submitted to the Department of Economic Opportunity (DEO) for funding through this
program must provide proof:5
Of official commitments of support from each of the units of local government represented by
the regional organization;
That each local government has made financial or in-kind commitments to the regional
organization;
That the private sector has made financial or in-kind commitment to the regional organization;
That the regional organization is in existence and actively involved in economic development
activities serving the region; and
Of the manner in which the organization coordinates its efforts with those other local and state
organizations.
An organization may receive up to $50,000 a year or $250,000 if located in an RAO.6 Grants must be
matched by an amount of non-state resources equal to 25 percent of the state contribution. DEO is
authorized to spend up to $750,000 each fiscal year from funds appropriated to the Rural Community
Development Revolving Loan Fund to carry out this program. 7
Effect of the Bill
Related to the Regional Rural Development Grants Program, the bill:
Removes the match requirements.
Removes the requirement for local governments and private businesses to make financial or in-
kind commitments to the regional organization.
Rural Infrastructure Fund
Present Situation
The Rural Infrastructure Fund is a grant program created to facilitate the planning, preparing, and
financing of infrastructure projects in rural communities. 8 The program provides access to federal and
state infrastructure funding programs, including, but not limited to, those offered by the United States
Departments of Agriculture and Commerce.9 The program funds total infrastructure project grants,
infrastructure feasibility grants, and preclearance review grants.
DEO may award grants for up to 50 percent of the total infrastructure project cost. 10 Projects must be
related to specific job-creation or job-retention opportunities. Additionally, projects may include
improving any inadequate infrastructure that has resulted in regulatory action that prohibits economic or
community growth or reducing the costs to community users of proposed infrastructure improvements
that exceed such costs in comparable communities, and improving the access availability of broadband
Internet service.
Eligible uses of funds include improvements to public infrastructure for industrial or commercial sites,
upgrades to or development of public tourism infrastructure, and improvements to broadband Internet
service and access in unserved or underserved rural communities. 11 Infrastructure can include public or
public-private partnership facilities, like storm water systems, telecommunication, broadband, roads,
and nature-based tourism.12
5 S. 288.018(2), F.S.
6 S. 288.018(1)(c), F.S.
7 S. 288.018(4), F.S.
8 See s. 288.0655, F.S.
9 S. 288.0655(2)(b), F.S.
10 Id.
11 Id.
12 Broadband Internet service must be provided in partnership with one or more dealers of communications services. S.
288.0655(2)(b), F.S.
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The infrastructure feasibility grant provides awards of up to 30 percent of the total project costs for
infrastructure feasibility studies, design and engineering activities, or other infrastructure planning and
preparation activities.13 Maximum awards are dependent on the number of jobs that a business
commits to create and may be up to $300,000 if the project is located in a RAO. The total projec t
participation grant may be used in conjunction with the infrastructure feasibility grant.
The preclearance review grant provides awards to help a local government participate in expedited
permitting processes through technical assistance in preparing permit applications and local
comprehensive plan amendments.14 Grants may be used for surveys, feasibility studies, and other
activities related to the identification and preclearance review of land use modifications. Grants are
limited to $75,000 and must be matched 50 percent with local funds. However, projects in a RAO may
receive up to $300,000 and must be matched 33 percent with local funds. 15
Grant applications are reviewed and certified by DEO in consultation with Enterprise Florida, Inc., the
Florida Tourism Industry Marketing Corporation, the Department of Environmental Protection, and the
Florida Fish and Wildlife Conservation Commission. 16 Reviews include an evaluation of the economic
benefit of the projects and their long-term viability.
A total of $30 million in funding was made through the Rural Infrastructure Fund for Fiscal Year 2022-
2023. Twenty-five million was available for eligible rural communities statewide and an additional $5
million was available specifically for Florida Panhandle counties.17
Rural Areas of Opportunity
A rural area of opportunity (RAO) is a rural community,18 or region comprised of rural communities,
designated by the Governor, that has been adversely affected by an extraordinary economic event,
severe or chronic distress, or a natural disaster.19 An area may also be designated as an RAO if it
presents a unique economic development opportunity of regional impact. The designation of an RAO
must be agreed upon by the Department of Economic Opportunity (DEO), as well as the county and
municipal governments to be included in the RAO.20
Based on recommendations of the Rural Economic Development Initiative (REDI),21 the Governor may
designate up to three RAOs by executive order.22 This designation establishes these areas as priority
assignments for REDI and allows the Governor, acting through REDI, to waive criteria, requirements, or
similar provisions of any economic development initiative.
Currently, there are three designated RAO areas:
Northwest RAO: Calhoun, Franklin, Gadsden, Gulf, Holmes, Jackson, Liberty, Wakulla, and
Washington counties, and portions of Walton County (the City of Freeport and lands north of the
Choctawhatchee Bay and intercoastal waterway).
13 S. 288.0655(2)(c), F.S.
14 S. 288.0655(2)(e), F.S. Expedited permitting is pursuant to s. 403.9739(18), F.S.
15 S. 288.0655(2)(e), F.S.
16 S. 288.0655(3), F.S.
17 Department of Economic Opportunity, Rural Infrastructure Fund, https://floridajobs.org/community-planning-and-
development/rural-community-programs/rural-infrastructure-fund (last visited March 24, 2023).
18 Section 288.0656(2)(e), F.S., defines a “rural community” as is any county with a population of 75,000 or fewer, any
county with a population of 125,000 or fewer that is contiguous to a county with a population of 75,000 or fewer, a
municipality in a county that meets either of the aforementioned criteria, or an unincorporated federal enterprise
community or an incorporated rural city with a population of 25,000 or fewer and an employment base focused on
traditional agricultural or resource-based industries, located in a county not defined as rural, which has at least three or
more of the economic distress factors.
19 S. 288.0656(2)(d), F.S.
20 S. 288.0656(7)(b), F.S.
21 S. 288.0656(1)(a), F.S. REDI was established by the Legislature to encourage and facilitate the location and expansion
of major economic development projects of significant scale in rural communities.
22 S. 288.0656(7)(a), F.S.
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South Central RAO: DeSoto, Glades, Hardee, Hendry, Highlands, and Okeechobee counties,
and the cities of Pahokee, Belle Glade, and South Bay in Palm Beach County and the city of
Immokalee in Collier County.
North Central RAO: Baker, Bradford, Columbia, Dixie, Gilchrist, Hamilton, Jefferson, Lafayette,
Levy, Madison, Putnam, Suwannee, Taylor, and Union counties. 23
Fiscally Constrained Counties
Fiscally Constrained Counties are counties entirely within a rural area of opportunity or where a 1 mill
levy would raise no more than $5 million in annual tax revenue. 24 A rural area of opportunity is a rural
community25 or region that has been adversely affected by an extraordinary economic event, severe
distress, natural disaster, or that presents a unique economic development opportunity of regional
impact, as designated by the Governor.26 Florida’s fiscally constrained counties are: Baker, Bradford,
Calhoun, Columbia, Desoto, Dixie, Franklin, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee,
Hendry, Highlands, Holmes, Jackson, Jefferson, Lafayette, Levy, Liberty, Madison, Okeechobee,
Putnam, Suwannee, Taylor, Union, Wakulla, and Washington.27
Effect of the Bill
Related to the Rural Infrastructure Fund, the bill:
Allows DEO to award grants for up to 75 percent of the total infrastructure project cost, an
increase from 50 percent.
Allows DEO to award grants for up to 100 percent of the total infrastructure project cost for a
project located in a rural community or a rural area of opportunity, if the county is also fiscally
constrained.
Removes the requirement related to infrastructure feasibility studies and other infrastructure
planning activities that grants awarded be limited to 30 percent of the total project cost.
Florida Development Finance Corporation
Present Situation
The Florida Development Finance Corporation (FDFC) is a statewide development financing authority
created by the Legislature.28 The FDFC operates as a conduit bond issuer that issues bonds on behalf
of borrowers.29 While the FDFC functions as a mechanism to help borrowers access capital markets, it
does not take on responsibility of debt repayment, even when a borrower fails to repay. Conversely, the
FDFC does not guarantee the bonds it issues but certain borrowers may opt in to the guaranty fund
established by the FDFC pursuant to s. 288.9607, F.S., which guarantees that the bonds issued will be
repaid. This guaranty fund consists of premiums paid by businesses that wish to participate in the fund
and by a property interest in the infrastructure built with the insured bond’s proceeds. 30
23 Department of Economic Opportunity, Rural Areas of Opportunity, https://floridajobs.org/community-planning-and