HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 5 Economic Programs
SPONSOR(S): Appropriations Committee, Commerce Committee, Esposito and others
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Commerce Committee 16 Y, 3 N, As CS Walsh Hamon
2) Ways & Means Committee 16 Y, 6 N Berg Aldridge
3) Appropriations Committee 19 Y, 7 N, As CS McAuliffe Pridgeon
SUMMARY ANALYSIS
The bill eliminates Enterprise Florida, Inc., (EFI) and provides that all duties, functions, records, pending
issues, existing contracts, administrative authority, administrative rules, and unexpended balances of
appropriations, allocations, and other public funds relating to the programs in EFI are transferred by a type two
transfer to the Department of Economic Opportunity (DEO).
The bill changes the name of DEO to the Department of Commerce (Commerce) and shifts duties from EFI to
Commerce.
Under the bill, VISIT FLORIDA (VF) and the Florida Sports Foundation may enter into agreements with DEO to
continue any existing programs, activities, duties, or functions necessary for their operation.
The bill designates the international offices program as a direct-support organization of Commerce.
The bill provides for the repeal of the following programs and incentives; however, the bill authorizes
continuation of payments for existing related commitments:
- Entertainment industry tax credit - Motorsports Entertainment Complex
- Qualified defense and space flight tax refund - Professional Golf Hall of Fame
- Qualified target industry businesses tax refund - International Game Fish Association World Center
- Economic Gardening Programs - Florida Small Business Technology Program
- Quick Action Closing Fund - New Markets Development Program
- Innovation Incentive Program - Microfinance programs
- Florida Space Flight Business Incentives - Economic Development Transportation Projects
- Scripps Florida Funding Corporation - Office of Film and Entertainment
- Cooperative advertising matching grants program - Florida Film Advisory Council
The bill authorizes 20 positions and appropriates $5 million to the Department of Commerce, and further
appropriates $5 million to the direct-support organization created in the bill. The economic incentive programs
repealed by the bill will not impact current state expenditures or revenues. See Fiscal Analysis & Economic
Impact Statement.
The bill provides an effective date of July 1, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Background
Florida’s economic development system is multi-faceted and includes public agencies, non-profit
corporations, and private entities at the state, regional, and local level. The Legislature created some of
these organizations, while others are units of local government or privately formed associations or
alliances. Many of the organizations have similar missions (e.g., encouraging economic development
and enhancing the state’s business climate) and serve the same constituencies (e.g., in- and out-of-
state businesses and the state’s economic and workforce development communities). The most
prominent of these organizations are Enterprise Florida, Inc. (EFI) and the DEO (DEO). To achieve
their economic development missions, EFI and DEO perform numerous activities and collaborate via
contracts as directed by statute.1
Prior to the creation of EFI, the Department of Commerce and Department of Labor and Employment
Security were responsible for the state’s economic development activities. In 1996, the Legislature
created EFI as a public-private partnership to serve as the state’s principal economic development
marketing and promotion organization.2
To support the ongoing evolution of the state’s economic development system, the 2011 Legislature
created DEO, transferring functions from the Agency for Workforce Innovation (AWI), Department of
Community Affairs (DCA), and Governor’s Office of Tourism, Trade, and Economic Development
(OTTED) to the new agency.3 AWI had performed functions related to workforce, unemployment
compensation, and early learning services, while DCA was the state’s land planning and community
development agency. OTTED assisted the Governor in formulating economic development policies and
strategies and administered the state’s economic programs. 4
Department of Economic Opportunity
The head of DEO is the Secretary of Opportunity, who is appointed by the Governor, subject to
confirmation by the Senate.5 DEO has seven divisions and offices established by statute, four of which
carry out DEO’s objectives and statutory responsibilities. Three of these divisions are Strategic
Business Development, Community Development, and Workforce Services. These divisions help fulfill
DEO’s statutorily mandated responsibilities, which include, but are not limited to:
 Ensuring that Florida’s goals and policies relating to economic development, community
planning and development, workforce development, and affordable housing are fully integrated
with appropriate implementation strategies;
 Recruiting new businesses to Florida and promoting the expansion of businesses by expediting
permitting and location decisions, worker placement and training, and incentive awards;
 Promoting viable, sustainable communities by providing technical assistance and guidance on
growth and development issues, grants, and other assistance to local communities;
 Coordinating with state agencies on the processing of state development approvals or permits
to minimize the duplication of information provided by the applicant and the time before approval
or disapproval; and
1 OPPAGA, Report No. 16-09, Agency Review-Enterprise Florida, Inc., and Department of Economic Opportunity, p.3
(December 2016).
2 Id. at 7.
3 Chapter 2011-142, Laws of Fla. DEO began operations in October 2011.
4 OPPAGA, Report No. 16-09, supra n. 1, p.7.
5 S. 20.60(2), F.S.
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  Managing the activities of public-private partnerships and state agencies in order to avoid
duplication and promote coordinated and consistent implementation of various programs. 6
Current law allocates the following duties specifically to the Division of Strategic Business
Development:7
 Analyzing and evaluating business prospects identified by the Governor and, the secretary, and
EFI;
 Administering certain tax refund, tax credit, and grant programs created in law;
 Developing measurement protocols for the state incentive programs and for the contracted
entities which will be used to determine their performance and competitive value to the state;
 Developing a 5-year statewide strategic plan, which must include certain strategies and
provisions.;
 Updating the strategic plan every 5 years; and
 Involving EFI, CareerSource Florida, Inc., local governments, the general public, local and
regional economic development organizations, the business community, educational
institutions, and other specified entities in the formation of the strategic plan.
DEO’s Office of Economic Accountability and Transparency was created in 2021. 8 The Office of
Economic Accountability and Transparency is tasked with:
 Overseeing critical objectives and ensuring key objectives are clearly communicated to the
public;
 Organizing resources, expertise, data, and research to focus on and solving the complex
economic challenges facing the state;
 Providing leadership for priority issues that require integration of policy, managements, and
critical objectives from multiple programs and organizations internal and external to DEO;
 Promoting and facilitating key initiatives to address priority economic issues and exploring data
and identify opportunities for innovative approaches to address such economic issues ; and
 Promoting strategic planning.9
Enterprise Florida, Inc.
EFI is a nonprofit corporation established by the Legislature to serve as the state’s main economic
development organization.10 EFI is required to enter into a performance-based contract with DEO,
which includes annual measurements of the performance of EFI.11 The corporation is responsible for:
 Marketing the state as a pro-business location for new investment and as a tourist destination;
 Advancing international and domestic trade opportunities;
 Providing support to small and minority-owned businesses;
 Assisting, promoting, and enhancing economic opportunities in the state's rural and urban
communities;
 Advocating for Florida's military bases and administering defense grants; and
 Promotion and development of professional, amateur, recreational sports, and physical fitness
opportunities.12
EFI has the following duties:
6 S. 20.60(4), F.S.
7 S. 20.60(5)(a), F.S.
8 Chapter 2021-25, Laws of Fla.
9 S. 20.60 (3)(a), F.S.
10 S. 288.901, F.S. Chapter 92-277, Laws of Fla., created EFI, while ch. 96-320, Laws of Fla, established EFI as a public-
private partnership.
11 S. 20.60(11), F.S., requires DEO to “establish annual performance standards for Enterprise Florida, Inc., CareerSource
Florida, Inc., the Florida Tourism Industry Marketing Corporation, and Space Florida and report annually on how these
performance measures are being met.”
12 Office of Program Policy Analysis and Governmental Accountability, Enterprise Florida, Inc.,
https://oppaga.fl.gov/ProgramSummary/BackPageDetail?programNumber=6112&backPageNumber= 03 (last visited April
6, 2023).
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  Responsibly and prudently manage all public and private funds received, and ensure that the
use of such funds is in accordance with all applicable laws, bylaws, or contractual requirements;
 Administer certain entities and programs;
 Prepare an annual report;
 Prepare, in conjunction with DEO, an annual incentives report;
 Assist DEO with the development of an annual and a long-range strategic business blueprint for
economic development;
 In coordination with CareerSource Florida, Inc., identify education and training programs that
will ensure that Florida businesses have access to a skilled and competent workforce necessary
to compete successfully in the domestic and global marketplace;
 Submit all proposed contracts with a cost in excess of a specified amount in accordance with
the notice and review procedures required in statute;
 Not create or establish any other entity unless authorized by law; and
 Comply with per diem and travel expense provisions.13
At a minimum, EFI is required to have divisions related to:
 International Trade and Business Development;
 Business Retention and Recruitment;
 Tourism Marketing;
 Minority Business Development; and
 Sports Industry Development.14
EFI is governed by a board of directors, of which the Governor serves as chairperson. The board of
directors biennially elects one of its members as vice chairperson. 15 Including the Governor or his or
her designee, the board of directors of EFI is comprised of twenty members: seven from the public
sector and twelve from the private sector.16 The eight members of the board from the public sector
include the following: the Governor or the Governor’s designee; the Commissioner of Education or his
or her designee; the Chief Financial Officer or his or her designee; the Attorney General or his or her
designee; the Commissioner of Agriculture or his or her designee; the chairperson of the board of
directors for CareerSource Florida, Inc.; the Secretary of State or his or her designee; and the
Secretary of Economic Opportunity or his or her designee.17
Of the twelve members from the private sector, the Governor appoints six18 and the President of the
Senate and Speaker of the Florida House of Representatives each appoint three. Such members are
appointed to four year terms and must include at least one director for each of the following areas of
expertise:19 international business; tourism marketing; the space or aerospace industry; managing or
financing a minority-owned business; manufacturing; finance and accounting; and sports marketing.
In addition, the President of the Senate must appoint a member of the Senate and the Speaker of the
House must appoint a member of the House of Representatives, both of which serve as ex officio
members.20 The board must meet at least four times each year, upon the call of the chairperson, at the
request of the vice chairperson, or at the request of a majority of the membership. A majority of the total
number of current voting members constitutes a quorum.21
Florida law directs the board of directors to “integrate its efforts in business recruitment and expansion,
job creation, marketing the state for tourism and sports, and promoting economic opportunities for
minority-owned businesses and promoting economic opportunities for rural and distressed urban
13 S. 299.903, F.S.
14 S. 288.92(1), F.S.
15 S. 288.901(4), F.S.
16 S. 288.901(5), F.S.
17 Id.
18 Members appointed by the Governor are subject to Senate confirmation. s. 288.901(5)(a), F.S.
19 S. 288.901(5)(b), F.S.
20 S. 288.901(7), F.S.
21 S. 288.901(8), F.S.
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 communities with those of the department, to create an aggressive, agile, and collaborative effort to
reinvigorate the state’s economy.”22 To that end, Florida law authorizes the Board to:
 Secure funding for its programs and activities from federal, state, local, and private sources and
from fees charged for services and published materials;
 Solicit, receive, hold, invest, and administer any grant, payment, or gift of funds or property and
make expenditures;
 Make and enter into contracts and other instruments necessary or convenient with its powers
and functions;
 Elect or appoint officers, employees, and agents as required for its activities and for its
divisions;
 Carry forward any unexpended state appropriations into succeeding fiscal years;
 Create and dissolve advisory councils, working groups, task forces, or other similar
organizations, as necessary to carry out its mission;
 Establish an executive committee consisting of the chairperson or a designee, the vice
chairperson, and as many additional members of the board of directors as the board deems
appropriate (with a minimum of five members);
 Sue and be sued, and appear and defend all actions and proceedings;
 Adopt, use, and alter a common corporate seal for EFI and its divisions;
 Adopt, amend, and repeal bylaws;
 Acquire, enjoy, use, and dispose of patents, copyrights, and trademarks and any licenses,
royalties, and other rights or interests;
 Use the state seal when appropriate for standard corporate identity applications; and
 Procure insurance or require bond against any loss in connection with the property of EFI. 23
As a public-private partnership, EFI is expected to obtain private sector support to help pay for its
operational costs. The Legislature provides an annual appropriation to EFI for its operations. According
to state law, the agency’s legislative appropriations must be matched with private sector support equal
to at least 100% of state operational funding.24 Under state law, private sector support includes:
 Cash given directly to EFI for its operations, including contributions from at-large members of
the board of directors;
 Cash donations from organizations assisted by EFI’s divisions;
 Cash jointly raised by EFI, private local economic development organizations, a group of such
organizations, or a statewide private business organization that supports collaborative projects;
 Cash generated by fees charged for products or services of EFI and i