Bill Summary – FastDemocracy

       Florida Senate - 2024                                    SB 1056
       
       
        
       By Senator Ingoglia
       
       
       
       
       
       11-01297-24                                           20241056__
                      A bill to be entitled                      
       An act relating to economic development in gaming
       concentrated counties; creating s. 288.401, F.S.;
       providing a short title; creating s. 288.402, F.S.;
       providing legislative findings and intent; creating s.
       288.403, F.S.; defining terms; creating s. 288.404,
       F.S.; creating Prospect Del Vista, Inc., as a
       nonprofit corporation which is not a unit or entity of
       the state government; requiring Prospect Del Vista,
       Inc., to create and administer an investment fund for
       a certain purpose in a certain manner; providing for
       the principal of the fund; requiring Prospect Del
       Vista, Inc., to establish a trust account for a
       certain purpose; providing for the reversion of
       certain funds to the State Treasury in certain
       circumstances; requiring Prospect Del Vista, Inc., to
       invest and reinvest the principal of the investment
       fund in a certain manner; requiring the board of
       directors to formulate a certain investment policy;
       requiring Prospect Del Vista, Inc., to competitively
       procure one or more money managers; providing
       requirements for such money managers; providing for
       the deduction of certain costs and fees from
       investment fund earnings; requiring an annual audit of
       the investment fund; requiring Prospect Del Vista,
       Inc., to provide certain biannual reports to the
       Governor and the Legislature; requiring the Auditor
       General to annually audit the investment fund and
       Prospect Del Vista, Inc.; creating s. 288.405, F.S.;
       providing that Prospect Del Vista, Inc., is subject to
       certain public records and meetings requirements;
       providing for the board of directors of Prospect Del
       Vista, Inc.; providing for appointments, terms, and
       the filling of vacancies of board members; subjecting
       the board members to certain requirements and
       postemployment restrictions; providing criminal
       penalties; requiring board members to file certain
       financial disclosures; authorizing board members to
       receive reimbursement for certain travel and per diem
       expenses; providing that each board member is
       responsible for certain duties; providing for removal
       of a board member in certain circumstances; requiring
       the board of directors to meet at least quarterly for
       certain purposes; requiring the Secretary of Commerce
       and the Secretary of Environmental Protection, or
       their designees, to be available for a certain
       purpose; authorizing Prospect Del Vista, Inc., to hire
       or contract for certain staff; requiring Prospect Del
       Vista, Inc., to retain certain staff; providing
       requirements for such staff; creating s. 288.406,
       F.S.; providing powers of the Prospect Del Vista,
       Inc., board of directors; creating s. 288.407, F.S.;
       providing the duties of Prospect Del Vista, Inc.;
       creating s. 288.408, F.S.; authorizing Prospect Del
       Vista, Inc., to make certain awards to certain
       projects or programs; authorizing awards for certain
       purposes; requiring Prospect Del Vista, Inc., to
       establish an application procedure and a scoring
       process that gives priority to projects and programs
       that meet certain requirements; authorizing Prospect
       Del Vista, Inc., to make awards in a certain manner;
       requiring certain contracts to include certain
       provisions; creating s. 288.409, F.S.; requiring that
       the scope of certain audits include funds awarded by
       Prospect Del Vista, Inc.; requiring the Auditor
       General to conduct a certain operational audit
       biennially; providing the scope of review of such
       audits; providing an effective date.
        
Be It Enacted by the Legislature of the State of Florida:

       Section 1. Section 288.401, Florida Statutes, is created to
read:
       288.401 Short title.—Sections 288.401-288.409 may be cited
as the “Prospect Del Vista Infrastructure and Investment Act.”
       Section 2. Section 288.402, Florida Statutes, is created to
read:
       288.402 Prospect Del Vista, Inc.; legislative intent.—The
Legislature recognizes that supporting counties affected by
increased density because of a concentration of licensed pari
mutuel facilities to ensure goals for economic improvement and
variation are achieved is in the best interest of the citizens
of the state. The Legislature intends to provide a long-term
source of funding for efforts of economic improvement and
augmentation in gaming concentrated counties. The Legislature
finds that it is important to help businesses, individuals, and
local governments in counties affected by increased density
because of a concentration of licensed gaming facilities.
       Section 3. Section 288.403, Florida Statutes, is created to
read:
       288.403 Definitions.—As used in this act, the term:
       (1) “Awardee” means a person, organization, or local
government granted an award of funds from the investment fund
for a project or program.
       (2) “Earnings” means all the income generated by
investments and interest.
       (3) “Gaming concentrated county” means any county with five
or more operating Florida licensed pari-mutuel permitholders.
       (4) “Investment fund” means a trust account established by
Prospect Del Vista, Inc., for the benefit of gaming concentrated
counties.
       Section 4. Section 288.404, Florida Statutes, is created to
read:
       288.404 Prospect Del Vista, Inc.; investment fund;
creation; investment.—
       (1) There is created a nonprofit corporation, to be known
as Prospect Del Vista, Inc., which shall be registered,
incorporated, organized, and operated in compliance with chapter
617, and which is not a unit or entity of state government.
Prospect Del Vista, Inc., may receive, hold, invest, and
administer the investment fund in support of this act. Prospect
Del Vista, Inc., is not subject to control, supervision, or
direction by the Department of Commerce in any manner,
including, but not limited to, personnel, purchasing,
transactions involving real or personal property, and budgetary
matters.
       (2) Prospect Del Vista, Inc., must create and administer
the investment fund for the benefit of gaming concentrated
counties. The principal of the fund shall derive from general
revenue. The amount deposited into the fund from general revenue
shall equal the difference in slot machine revenue tax paid to
the Florida Gaming Control Commission collected from all
licensed pari-mutuel facilities in the year immediately before
and each subsequent year after a county becomes a gaming
concentrated county.
       (3) The investment fund must be maintained as a long-term
and stable source of revenue for gaming concentrated counties.
Prospect Del Vista, Inc., shall establish a trust account at a
federally insured financial institution to hold funds and make
deposits and payments. Earnings generated by investments and
interest of the fund, plus the amount of principal available
each year, must be available to make awards pursuant to this act
and pay administrative costs. Earnings must be accounted for
separately from principal funds set forth in subsection (2).
Administrative costs are limited to 2.25 percent of the earnings
in a calendar year. Administrative costs include payment of
investment fees, travel and per diem expenses of board members,
audits, salary or other costs for employed or contracted staff,
including required staff under s. 288.405(9), and other
allowable costs. If the investment fund is dissolved, any funds
remaining shall revert to the State Treasury.
       (4) Prospect Del Vista, Inc., shall invest and reinvest the
principal of the investment fund in accordance with s. 617.2104
in a manner that does not subject the funds to state or federal
taxes and is consistent with an investment policy statement
adopted by the corporation.
       (a) The board of directors shall formulate an investment
policy governing the investment of the principal of the
investment fund. The policy shall pertain to the types, kinds,
or nature of investment of any of the funds, and any
limitations, conditions, or restrictions upon the methods,
practices, or procedures for investment, reinvestments,
purchases, sales, or exchange transactions, provided such
policies shall not conflict with nor be in derogation of any
state constitutional provision or law. The policy shall be
formulated with the advice of the financial advisor in
consultation with the State Board of Administration.
       (b) Prospect Del Vista, Inc., must competitively procure
one or more money managers, under the advice of the financial
advisor in consultation with the State Board of Administration,
to invest the principal of the investment fund. The applicant
manager or managers may not include representatives from the
financial institution housing the trust account for the
investment fund. The applicant manager or managers must present
a plan to invest the investment fund to maximize earnings while
prioritizing the preservation of investment fund principal. Any
agreement with a money manager must be reviewed by Prospect Del
Vista, Inc., for continuance at least every 5 years. Plans must
include investment in technology and growth businesses domiciled
in, or that will be domiciled in, this state or businesses for
which their principal addresses are in this state.
       (c) Costs and fees for investment services must be deducted
from the earnings as administrative costs. Fees for investment
services may not be greater than 150 basis points.
       (d) Annually, Prospect Del Vista, Inc., shall cause an
audit to be conducted of the investment of the investment fund
by the independent certified public accountant retained as
provided in s. 288.405. The expense of such audit shall be paid
from earnings for administrative purposes.
       (5) Prospect Del Vista, Inc., shall biannually on June 30
and December 30 provide a report to the Governor, the President
of the Senate, and the Speaker of the House of Representatives
on the financial status of the investment fund and its
investments, the established priorities, the project and program
selection process, including a list of all submitted projects
and reasons for approval or denial, and the status of all
approved awards.
       (6) The Auditor General shall annually conduct an audit of
the investment fund and Prospect Del Vista, Inc. Prospect Del
Vista, Inc., shall provide to the Auditor General any detail or
supplemental data required.
       Section 5. Section 288.405, Florida Statutes, is created to
read:
       288.405 Prospect Del Vista, Inc., organization; board of
directors.—
       (1) Prospect Del Vista, Inc., is subject to the provisions
of chapter 119 relating to public records and of chapter 286
relating to public meetings and records.
       (2) Prospect Del Vista, Inc., shall be governed by a five
member board of directors. The President of the Senate and the
Speaker of the House of Representatives shall each appoint two
members from the private sector. The Governor shall appoint one
member from the private sector. The board of directors shall
annually elect a chairperson from among the board’s members. The
chairperson may be removed by a majority vote of the members.
His or her successor shall be elected to serve for the balance
of the removed chairperson’s term. The chairperson is
responsible to ensure records are kept of the proceedings of the
board of directors and is the custodian of all books, documents,
and papers filed with the board; the minutes of meetings of the
board; and the official seal of Prospect Del Vista, Inc.
       (3) Each member of the board of directors shall serve for a
term of 4 years, except that initially one of the appointments
of the President of the Senate and of the Speaker of the House
of Representatives shall serve a term of 2 years to achieve
staggered terms among the members of the board. A member is not
eligible for reappointment to the board, except that any member
appointed to a term of 2 years or less may be reappointed for an
additional term of 4 years. The initial appointments to the
board must be made by November 15, 2024. A vacancy on the board
of directors shall be filled by the officer who originally
appointed the member. A vacancy that occurs before the scheduled
expiration of the term of the member shall be filled for the
remainder of the unexpired term.
       (4) The Legislature determines that it is in the public
interest for the members of the board of directors to be subject
to the requirements of ss. 112.3135, 112.3143, and 112.313,
notwithstanding the fact that the board members are not public
officers or employees. For purposes of those sections, the board
members shall be considered to be public officers or employees.
In addition to the postemployment restrictions of s. 112.313(9),
a person appointed to the board of directors must agree to
refrain from having any direct interest in any contract,
franchise, privilege, project, program, or other benefit arising
from an award by Prospect Del Vista, Inc., during the term of
his or her appointment and for 2 years after the termination of
such appointment. It is a misdemeanor of the first degree,
punishable as provided in s. 775.082 or s. 775.083, for a person
to accept appointment to the board of directors in violation of
this subsection or to accept a direct interest in any contract,
franchise, privilege, project, program, or other benefit granted
by Prospect Del Vista, Inc., to an awardee within 2 years after
the termination of his or her service on the board. Further,
each member of the board of directors who is not otherwise
required to file financial disclosure under s. 8, Art. II of the
State Constitution or s. 112.3144 shall file disclosure of
financial interests under s. 112.3145.
       (5) Each member of the board of directors shall serve
without compensation, but may be reimbursed for travel and per
diem expenses as provided in s. 112.061 incurred in the
performance of his or her duties.
       (6) Each member of the board of directors is accountable
for the proper performance of the duties of office, and each
member owes a fiduciary duty to the people of the state to
ensure that awards provided are disbursed and used, and
investments are made, as prescribed by law and contract. An
appointed member of the board of directors may be removed by the
officer that appointed the member for malfeasance, misfeasance,
neglect of duty, incompetence, permanent inability to perform
official duties, unexcused absence from three consecutive
meetings of the board, arrest or indictment for a crime that is
a felony or a misdemeanor involving theft or a crime of
dishonesty, or pleading nolo contendere to, or being found
guilty of, any crime.
       (7) The board of directors shall meet at least quarterly,
upon the call of the chairperson or at the request of a majority
of the membership, to review the investment fund, establish and
review priorities for economic improvement and augmentation in
gaming concentrated counties, and determine use of the earnings
available. A majority of the members of the board of directors
constitutes a quorum. Members may not vote by proxy.
       (8) The Secretary of Commerce, or his or her designee, and
the Secretary of Environmental Protection, or his or her
designee, must be available to consult with the board of
directors and may be requested to attend meetings of the board
of directors. These individuals may not vote on any matter
before the board.
       (9)(a) Prospect Del Vista, Inc., may hire or contract for
all staff necessary to the proper execution of its powers and
duties. The corporation must retain:
       1. An independent certified public accountant