TALLAHASSEE, Fla. – 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.
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"It's coming out of your hardworking taxpayer pockets, that's funding these insider elites. And it's going to stop," said House Speaker Richard Corcoran.
The proposal, pushed by 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."
After the vote, Scott tweeted, "Politicians in @MyFLHouse turned their back on jobs today by supporting job killing legislation."
Scott said House members supporting the bill don’t know what they’re talking about.
”We now have 1.4 million jobs tied to tourism. So I've got House members now that want to stop and job growth. These are individuals that they didn't grow up like I did. They didn't build a business. But they want to lecture me that they know better about how to grow jobs. I've lived it," Scott said.
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.
Sen. Rob Bradley, a Fleming Island Republican, lined up behind the governor, saying Scott promised he would focus on jobs, and has done just that.
"So much of our sales tax dollars that go to fund state government is paid by people who don't live here, but come and visit here. They don't use our schools. They don't use our roads, but just for a very quick amount of time, and then they go back home," Bradley said. "What a deal for the people of the state of Florida."
Sen. Aaron Bean, a Republican representing Duval and Nassau counties, said he fully supports marketing the state's tourism industry, but agreed that some reform may be necessary for Enterprise Florida.
The House proposal drew criticism from business lobbyists who filed 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.
Renner added that Visit Florida has a growing "accountability" problem, which should force the agency to justify its existence. But for now, reports that included Visit Florida paying what had been an undisclosed $1 million to Miami hip-hop artist Pitbull offset any positives that the agency has garnered by helping the state hit record tourism numbers.
"When taxpayers sit back and see millions of dollars going to multimillion-dollar celebrities, it doesn't sit well," Renner said. "Visit Florida needs to come in and offer up what they're going to do to fix this. But at this point, because of those challenges, the House's position is they need to be eliminated."
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 that the bill leaves Florida "flat-footed and forces us to compete without the resources to win."
Both expressed optimism after the meeting that 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.
Lawmakers rejected Scott's request of $250 million for economic incentives through Enterprise Florida a year ago, but at the same time approved $78 million for Visit Florida.
On Tuesday, rancor over the House proposal spilled across the Capitol.
Scott contended after a Cabinet meeting that Corcoran -- rumored to be eyeing a gubernatorial run in 2018 -- was using the issue to further his political career.
"It's pretty clear if you don't care about people's jobs, you must be caring about something else. … The only thing this could be is politics," said Scott, who may run for U.S. Senate in two years.
Corcoran quickly responded that "we were elected to do what is right and clean up government, put an end to the waste of taxpayer money and end the culture of corruption."
But Corcoran maintained that it's a disagreement, not a rift between his office and the governor's office.
"Gov. Scott is a real friend. And he has a great heart, he really does. I'll say it a thousand times for us, it's just about trying to figure out the right policy for the people of the state," Corcoran said. "There is a right, and there is a wrong. You can look at facts and evidence and say this program is failing when you're giving a million dollars to a rapper and you're claiming that you're helping advertising in the state? Nobody buys into that."
Along with abolishing Enterprise Florida and Visit Florida, the House measure also would end the Office of Film & Entertainment, the Florida Small Business Development Center Network, Florida's international offices and several other programs.
Rep. Mike La Rosa, R-St. Cloud, said in voting for the proposal that many of the programs "should have been eliminated a long time ago."
Under the proposal, unallocated money from those programs would be shifted into the state's general revenue.
Existing deals between the agencies and private businesses would remain in place and, along with selected programs, be rolled into the state Department of Economic Opportunity.
Earlier Wednesday, Senate Transportation, Tourism & Economic Development Appropriations Chairman Jeff Brandes, R-St. Petersburg, expressed doubt about the Senate taking up the House measure.
"I don't think there is going to be a bill like that in the Florida Senate," Brandes said after his panel heard an overview from state economists about incentive programs.
"I think we're in an open conversation with the House," Brandes added. "Obviously, they have their own ideas … they're free to work on whatever projects they want, and we will thoughtfully consider what their proposals are."
But Brandes said he believes lawmakers should look to recast the agencies to focus on small and local businesses.
"I think focusing on small businesses is what our team of economists is telling us we should be doing that we're currently not doing," Brandes said.
Amy Baker, head of the Legislature's Office of Economic and Demographic Research, told Brandes' subcommittee that the biggest driver of economics in the state is the growing population that demands more goods.
She also offered a report indicating the majority of the state's incentive programs, including what is known as the "Quick Action Closing Fund," have fallen short of providing a positive return on investment.
But she noted that the state's benchmark for breaking even is a "lofty challenge," as each tax-incentive dollar offered must "cycle" through the state's economy 16.67 times to be considered an even return on investment.
The News Service of Florida contributed to this report.