House subcommittee passes bill to eliminate incentives


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  • | 12:00 p.m. February 9, 2017
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A House proposal that would kill Gov. Rick Scott’s prized economic development and tourism agencies began moving forward Wednesday over Scott’s growing public objections.

The House Careers & Competition Subcommittee voted 10-5 to back a 172-page proposal (PCB CCS 17-01) that would eliminate the public-private Enterprise Florida and tourism marketer Visit Florida, along with a lengthy list of tax-credit and grant programs designed to attract companies to relocate and build in the state.

The proposal, pushed by House Speaker Richard Corcoran, has raised tensions in the Capitol, but it likely won’t reach the Senate as is.

Some supporters said they expect the bill to undergo changes if the agencies are able to quickly show they can be more transparent and focus more on small counties and small businesses.

“I do think that some of the things are going to be zeroed out, but I think at the end of the day not everything gets zeroed out,” subcommittee Chairman Halsey Beshears, R-Monticello, said after voting for the proposal.

“The bigger guys are going to take care of themselves. That doesn’t mean throw them under the bus. It just means we need to focus those dollars where we can get the best bang for our buck,” Beshears said.

After the vote, Scott tweeted, “Politicians in @MyFLHouse turned their back on jobs today by supporting job killing legislation.”

Prior to the meeting, Scott — amid a growing feud with Corcoran — tweeted, “A job creates hope, a job creates opportunity for your family. LETS FIGHT FOR JOBS TODAY.” (The capital letters were by the governor.)

The House proposal drew criticism from business lobbyists who filled the committee room and said spending through the public-private agencies has helped improve the state’s economy during the past six years.

Rep. Paul Renner, a Palm Coast Republican who is sponsoring the proposal, said money spent on incentives doesn’t help small businesses or local residents, puts at a disadvantage businesses that are forced to compete with companies that get state money and reduces spending for public safety, roads, bridges and education.

“When we spend hundreds of millions of dollars on economic incentives for a few companies, we steal money from those core critical priorities that we all share an interest in,” Renner said.

He added Visit Florida has a growing “accountability” problem, which should force the agency to justify its existence.

But for now, reports that Visit Florida paid what had been an undisclosed $1 million to Miami hip-hop artist Pitbull offset any positives the agency has garnered by helping the state hit record tourism numbers.

Ken Lawson, who recently became president of Visit Florida after serving as secretary of the state Department of Business and Professional Regulation, told the subcommittee the tourism agency is moving to become more transparent in its contracts.

Enterprise Florida President Chris Hart, who also recently moved to his current job, added the bill leaves Florida “flat-footed and forces us to compete without the resources to win.”

Both expressed optimism after the meeting the House will be open to making changes to the proposal within the next three months. The annual 60-day legislative session starts March 7.

Voting against the bill, Rep. Al Jacquet, D-Lantana, cited a “big fear” that eliminating Visit Florida will harm the service industry that relies on tourists.

Also, Rep. Joe Gruters, a Sarasota Republican who voted against the proposal, questioned how Florida will be able to remain competitive with other states that provide business-recruitment money.

The vote came as Scott has rallied supporters of the two agencies to lobby House members against the measure and to back his budget request to provide $85 million for Enterprise Florida business incentives and $76 million for Visit Florida.

 

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