Florida’s economic development machine would have to provide more detailed information on the impact of state-backed incentives under a House measure unveiled Wednesday that joins a handful of similar efforts before lawmakers.
Criticized for lacking a systematic and standardized review process, the Department of Economic Opportunity and Enterprise Florida have been asked to bolster reporting requirements from companies that benefit from millions of dollars in targeted state aid.
On Wednesday, the House Economic Development and Tourism Subcommittee voted unanimously to approve a proposed committee bill (PCB-EDTS 13-01) that also makes changes to the way the state divvies out federal block grants and state funds to small cities and boosts penalties for recipients who commit fraud to collect jobless benefits.
The Department of Economic Opportunity estimates that it made $33.2 million in overpayments on about 25,300 fraudulent claims in 2011-2012. The proposed 15 percent penalty would translate into fines totaling $4.9 million.
The bill also requires an annual review of state economic development incentive efforts, requiring a more detailed accounting of refunds and other payments to businesses, analyses of an incentive’s impact and reasons if benchmarks are not met.
The track record for economic incentives has come into question following reports of companies falling far short, or failing completely – after receiving economic incentives from the state. Earlier this week, a study commissioned by the conservative group Americans for Prosperity challenged the notion that the incentives were helpful at all.
Another measure approved by the House committee Wednesday would require DEO to provide detailed information on costs associated with doing business in communities across the state. The bill (HB 121) would require the agency to post on its website city-specific information including permit costs, special taxes, enterprise zones and other data that a potential business could use to determine whether it wants to enter a market.
“This bill is not about the Walmarts and Publix’s,” said Rep. Neil Combee, R-Lakeland. “This will help mom and pop businesses who don’t already have access to this kind of detailed information.”
by Michael Peltier
