Wednesday, May 2, 2012

Rick Scott Signs Embargo on Business Contracts with Cuba and Syria

By: Jim Turner
May 2, 2012 3:55 AM

Gov. Rick Scott signed legislation Tuesday designed to punish companies that do business with Cuba or Syria. Both nations are on the U.S. State Department list of “state sponsors of terrorism.”

For a symbolic flourish, Scott signed the bill, House Bill 959, in the Freedom Tower in Miami, a building that once served as a processing center by the federal government for refugees fleeing Fidel Castro’s communist regime.

“The records of the Castro and Assad governments are undeniably oppressive, and have worked in ways that are counter to American interests,” Scott stated in a release. “The legislation I’m signing today is designed to protect Florida taxpayers from unintentionally supporting dictators that suppress freedom and the rights of individuals, but we must have a federal partner that will permit this law to become operative.”

HB 959 would prohibit Florida and governments in the Sunshine State from contracting or maintaining contracts of $1 million or more with companies that are also dealing with the governments in Cuba and Syria.

Among many business organizations throughout the state, the Greater Tampa Area Chamber of Commerce requested Scott veto the bill.

“This law sends a bad message to the companies from Canada and Brazil that Florida is not that open for business,” Bob Rohrlack, Greater Tampa Area Chamber president and CEO, responded in an email.

The Florida Chamber of Commerce has questioned the constitutionality of the bill and expressed that the effort could hurt the state economically with two of its larger trading partners, Canada and Brazil.

“While we believe Florida should do everything we can within our Constitution to push for a free Cuba and Syria, free from government bombing of its own citizens, we support the federal government in their pursuit of those goals and remain concerned that Florida creating its own foreign policy potentially sends a negative message to our major trading partners such as Brazil, Canada and Colombia,” Edie Ousley, Florida Chamber vice president of public affairs, responded in an email.

“This bill is likely unconstitutional and may have unintended consequences with our international trading partners. The Florida Chamber will continue to monitor the situation.”

Scott addressed the constitutional question in his signing statement.

“The federal government has enacted extensive laws and regulations governing relations and foreign commerce with Cuba and Syria,” Scott wrote. “As governor, it is my duty to faithfully execute the laws of the state of Florida and to uphold the Constitution of Florida and the United States. I am, therefore, signing this bill because I believe that the Florida Legislature drafted it in such a way that the contracting prohibitions in Section 2 avoid any conflict with federal laws governing relations and foreign commerce with Cuba and Syria.”

Scott would add that the state law would be lifted when the federal law is lifted.

The bill was strongly sponsored by South Florida Republicans and only a single legislator -- Sen. Larcenia Bullard, D-Miami -- voted against the proposal.

A prime target of the bill is apparently Coral Gables-based Odebrecht USA, an affiliate of the Brazilian company Odebrecht. Last year, Odebrecht USA won a highly publicized $57 million contract to strengthen cargo wharves in the Port of Miami. Meanwhile, another branch of the company performs work in Cuba.

In his signing statement, Scott also wrote:

“Among other things, this legislation addresses contractual relationships between Florida government entities and companies that have business operations in Cuba and Syria. The governments of Cuba and Syria are two of only four U.S.-designated 'State Sponsors of Terrorism,' and Florida’s tax dollars should play no part in propping them up.

“The shameful record of the Castro and Assad governments is undeniable: they brutally oppress their people, actively support international terrorism, and seek to harm U.S. interests at every turn. This legislation is designed to protect Florida taxpayers from supporting dictatorships that commit such despicable acts and deny political freedom to their citizens.

“It is imperative that Florida and the United States continue to place economic pressure on the Cuban and Syrian governments. Only by bringing to bear every weapon in our arsenal can we affect true change. This legislation demonstrates Florida’s commitment to spreading political and economic freedom in Cuba and Syria, and builds on previous legislation that prohibits state and local government contracts with companies doing business in Sudan and Iran.”

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