HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 7041 PCB RRS 23-01 Space Florida
SPONSOR(S): Commerce Committee, Regulatory Reform & Economic Development Subcommittee, Sirois
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Regulatory Reform & Economic 14 Y, 0 N Thompson Anstead
Development Subcommittee
1) Commerce Committee 17 Y, 0 N, As CS Thompson Hamon
SUMMARY ANALYSIS
Established by the Legislature in 2006, Space Florida was created to promote and foster the growth and
development of a sustainable and world-leading aerospace industry in this state. Space Florida is an
independent special district and subject to the provisions of the Uniform Special District Accountability Act,
which governs such issues as operations, financial reporting, taxation, assessments, elections, compliance
with general law, and comprehensive planning. Space Florida officials and employees are subject to public
notice and ethics requirements for officials and employees with few exceptions.
Space Florida is governed by a 13 member independent board of directors (Board), consisting of the 12 private
sector members of the Enterprise Florida, Inc. (EFI), board of directors, who are appointed by the Governor,
President of the Senate, and Speaker of the House of Representatives, plus the Governor or Governor’s
designee, who is a voting member and serves as the chair.
The bill revises provisions governing Space Florida to increase collaboration with public and private
stakeholders regarding spaceport activities, enhance transparency measures regarding spaceport projects,
and makes several revisions to the Board. In part, the bill:
 Separates the Board from the EFI board, establishes membership and appointment criteria, term
lengths, prohibits compensation, provides per diem and travel limits, allows electronic meetings, and
provides quorum requirements.
 Requires Space Florida to:
o Solicit input on Space Florida plans and activities from the aerospace industry, private sector
spaceport territory stakeholders, each entity that owns or has ownership interest in a facility
within spaceport territory, and other political subdivisions within spaceport territory.
o Include additional economic data in the Space Florida annual report to the Governor and
Legislature.
o Explain certain travel and entertainment expenditures and address recent audit findings.
o Assess and report on contracts with service organizations.
 Includes Space Florida among the list of economic development programs scheduled to be reviewed
and analyzed by the Office of Economic and Demographic Research (EDR) and the Office of Program
Policy Analysis and Government Accountability (OPPAGA).
 Adds Space Florida as an entity that the Department of Economic Opportunity (DEO) has contract
authority over and requires DEO’s annual repot to include Space Florida information.
 Requires the Board to conduct new member training using DEO’s board member training program.
The bill does not appear to have a significant fiscal impact on state or local government.
The effective date of the bill is 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:
Current Situation
Space Florida
In 2006, the Legislature passed the Space Florida Act, 1 which consolidated Florida’s three existing
space entities, the Florida Space Authority, the Florida Space Research Institute, and the Florida
Aerospace Finance Corporation, into a single entity called Space Florida.2 Space Florida is established
as an independent special district, a body politic and corporate, and a subdivision of the state, to foster
the growth and development of a sustainable and world-leading aerospace industry in the state. Space
Florida has all the powers, rights, privileges, and authority as provided under the laws of this state.3
Space Florida acts as Florida’s point of contact for state aerospace-related activities with federal
agencies, the military, state agencies, businesses, and the private sector. 4 Space Florida is authorized
to purchase or construct facilities, set rates, fees, and charges for the use of facilities, and undertake
joint financing with municipalities or private sector entities for any project. 5
According to Space Florida’s 2022 Annual Operations Report, as of July 1, 2022, Space Florida had 85
total projects in development with an estimated value of $2.4 billion in capital investment, and provided
$4.3 million in funding for 30 research projects, partnerships, and grants.6
Powers of Space Florida
In furtherance of its duties, Space Florida is given certain powers, including, but not limited to:7
 Using a corporate seal;
 Using patents, copyrights and trademarks;
 Lending and investing money;
 Acquiring certain properties;
 Executing contracts;
 Issuing revenue bonds;
 Making expenditures for entertainment and travel expenses and business clients, guests, and
other authorized persons; and
 Fixing and collecting fees, loan payments, rental payments, and other charges in connection
with financing agreements.
Duties of Space Florida
In order to implement the Space Florida Act and carry out spaceport operations, Space Florida is given
certain duties, including, but not limited to, creating a business plan, entering into agreements and
cooperating with other state agencies, and consulting with appropriate federal agencies.8
Specifically, Space Florida is required to:
1 Ch. 2006-60, Laws of Fla.
2 See ss. 331.301 through 331.371, F.S.
3 S. 331.302, F.S.
4 S. 331.3011, F.S.
5 S. 331.305, F.S.
6 Space Florida, Space Florida Annual Report 2022, https://www.spaceflorida.gov/wp-content/uploads/2023/01/Space-Florida-FY22-
Annual-Operating-Report.pdf (last visited Feb. 27, 2023).
7 S. 331.305, F.S.
8 S. 331.3051, F.S.
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  Enter into agreements with the Department of Education (DOE), the Department of
Transportation (DOT), Enterprise Florida, Inc. (EFI), and CareerSource Florida, Inc. (CSF).9
 In cooperation with EFI, develop a plan to retain, expand, attract, and create aerospace industry
entities, public or private, which results in the creation of high-value-added businesses and jobs
in this state.10
 Develop, in cooperation with EFI, a plan to provide financing assistance to aerospace
businesses.11
 Carry out its responsibilities for spaceport operations by: 12
o Seeking federal support and developing partnerships to renew and upgrade the
infrastructure and technologies at the Cape Canaveral Air Force Station, the John F.
Kennedy Space Center, and the Eastern Range.
o Supporting federal efforts to clarify roles and responsibilities of federal agencies in an
effort to streamline access for commercial launch users.
o Pursuing the development of commercial spaceports in the state in partnership with
counties or municipalities, the Federal Government, or private entities.
o Promoting and facilitating launch activity within the state by supporting and assisting
commercial launch operators’ interactions with federal agencies for launching from
Florida.
o Consulting, as necessary, with the appropriate federal, state, and local authorities,
including the National Aeronautics and Space Administration (NASA), Federal Aviation
Administration (FAA), Department of Defense (DOD), DOT, Florida National Guard, and
industry on establishing and operating spaceport infrastructure and facilities in the state.
Annual Reports
Space Florida is required to provide an annual report to the Governor, the President of the Senate, and
the Speaker of the House of Representatives on its performance with respect to its business plan,
financing, spaceport operations, research and development, workforce development, and education.
Space Florida is required to submit the report by November 30 for the previous fiscal year. The annual
report must include operations information from its annual report of operations.13
Annual Report of Operations
The Space Florida board of directors is required to prepare an annual report of operations as a
supplement to the annual report. The report must include, but not be limited to, a balance sheet, an
income statement, a statement of changes in financial position, a reconciliation of changes in equity
accounts, a summary of significant accounting principles, the auditor’s report, a summary of the status
of existing and proposed bonding projects, comments from management about the year’s business,
and prospects for the next year.14
Transportation and Public Utilities Facilities
Space Florida is authorized to:15
 Own, acquire, construct, reconstruct, equip, operate, maintain, extend, or improve
transportation facilities appropriate to meet the transportation requirements of Space Florida
and activities conducted within spaceport territory;
 Own, acquire, construct, reconstruct, equip, operate, maintain, extend, or improve electric
power plants, transmission lines and related facilities, gas mains and facilities of any nature for
the production or distribution of natural gas, transmission lines and related facilities and plants
9 S. 331.3051(2), F.S.
10 S. 331.3051(3), F.S.
11 S. 331.3051(6), F.S.
12 S. 331.3051(7), F.S.
13 S. 331.3051(11), F.S.
14 S. 331.310(2)(e), F.S.
15 S. 331.305(12) and (13), F.S.
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 and facilities for the generation and transmission of power through traditional and new and
experimental sources of power and energy;
 Purchase electric power, natural gas, and other sources of power for distribution within any
spaceport territory;
 Develop and operate water and sewer systems and waste collection and disposal; 16 and
 Develop and operate such new and experimental public utilities, including, but not limited to,
centrally distributed heating and air-conditioning facilities and services, closed-circuit television
systems, and computer services and facilities, as the board may from time to time determine.
Space Florida Board of Directors
Space Florida is governed by a 13 member17 independent board of directors (Space Florida Board).
The Governor, or the Governor’s designee, is a voting member and serves as the chair. 18 The 12
appointed private sector members of the EFI board of directors also serve, by default, on the Space
Florida Board and are appointed to four-year terms.19
The duties of the Space Florida Board include:20
 Adopting rules and orders to conduct the business of Space Florida, the maintenance of
records, and the form of all documents and records of Space Florida.
 Maintaining an executive office and Space Florida offices in close proximity to the John F.
Kennedy Space Center.
 Appointing a president of Space Florida, and determining his or her title, functions, duties,
powers, and salary.
 Abiding by all applicable federal labor laws in the construction and day-to-day operations of
Space Florida and any spaceport.
 Preparing the annual report of operations as a supplement to its annual report, which is also
required by law.
The Space Florida Board is authorized to exercise the following powers: 21
 Enter, and authorize any agent or employee of Space Florida to enter, upon any lands, waters,
and premises, upon giving reasonable notice and due process to the land owner, for the
purposes of making surveys, soundings, drillings, appraisals, and examinations necessary to
perform its duties and functions.
 Execute all contracts and other documents, adopt all proceedings, and perform all acts
determined by the Space Florida Board to be necessary or desirable to carry out the purposes
given it in statute.
 Establish and create such departments, committees, or other entities as from time to time the
Space Florida Board deems necessary or desirable in the performance of any acts or other
things necessary to the exercise of the powers provided in statute.
 Provide financial services to support aerospace-related business development within the state.
Financial services may include, but are not limited to:
o Insuring, coinsuring, or originating for sale direct aerospace-related loans.
o Direct lending.
o Guaranteeing and collateralizing loans.
o Creating accounts.
o Capitalizing, underwriting, leasing, selling, or securing funding for aerospace-related
infrastructure.
o Investing in permissible securities.
o Organizing financial institutions and international bank syndicates.
16 This must be done consistent with ch. 88-130, Laws of Fla.
17 Six members are appointed by the Governor, three members are appointed by the President of the Senate, and three members are
appointed by the Speaker of the House of Representatives. S. 288.901(5)(a)7., F.S.
18 S. 331.3081, F.S.
19 S. 288.901(5)(a)8., F.S.
20 S. 331.310(2), F.S.
21 S. 331.310(1), F.S.
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 o Acquiring, accepting, or administering grants, contracts, and fees from other
organizations to perform activities that are consistent with the purposes of Space
Florida’s business plan. If the Space Florida Board deems a financial services entity is
necessary, the Space Florida Board may create, form, or contract with one or more such
entities.
 Examine, and authorize any officer or agent of Space Florida to examine, the county tax rolls
with respect to the assessed valuation of the real and personal property within any spaceport
territory.
 Engage in the planning and implementation of space-related economic and educational
development within the state.
 Provide the strategic direction for the aerospace-related research priorities of the state and its
aerospace-related businesses.
 Execute intergovernmental agreements and development agreements consistent with prevailing
statutory provisions, including, but not limited to, special benefits or tax increment financing
initiatives.
 Establish reserve funds for future Space Florida Board operations.
 Adopt rules to carry out the purposes of the Space Florida Act.
Travel and Entertainment Expenses
Notwithstanding the provisions for per diem and travel expenses for public officers, employees, and
authorized persons, and the statewide travel management system,22 Space Florida is required to adopt
rules for travel and entertainment expenses that:23
 Make expenditures by advancement or reimbursement, or a combination thereof, to Space
Florida officers and employees;
 Reimburse business clients, guests, and authorized persons;24 and
 Make direct payments to third-party vendors.
The travel and entertainment expenses of business clients, guests, and authorized persons must be
incurred by Space Florida in connection with the performance of its statutory duties. The travel
expenses of state officials and employees must be incurred while accompanying business clients,
guests, or authorized persons or when authorized by the Space Florida Board or its designee. The
entertainment expenses for Space Florida officials and employees must be incurred while in the
physical presence of such business clients, guests, or authorized persons.25
The travel and entertainment rules are subject to approval by the Chief Financial Officer (CFO) before
adoption, and are prescribed as follows:26
 Must require the submission of paid receipts, or other proof prescribed by the CFO, with any
claim for reimbursement.