CODING: Words stricken are deletions; words underlined are additions.





                                                  SENATE AMENDMENT

    Bill No. HB 1885, 1st Eng.

    Amendment No.    

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10                                                                

11  Senators Latvala and Dyer moved the following amendment:

12

13         Senate Amendment (with title amendment) 

14         Delete everything after the enacting clause

15

16  and insert:

17         Section 1.  Section 215.5601, Florida Statutes, is

18  created to read:

19         215.5601  Lawton Chiles Endowment Fund.--

20         (1)  SHORT TITLE.--This section may be cited as the

21  "Lawton Chiles Endowment Fund."

22         (2)  DEFINITIONS.--As used in this section:

23         (a)  "Board" means the State Board of Administration

24  established by s. 16, Art. IX of the State Constitution of

25  1885 and incorporated into s. 9(c), Art. XII of the State

26  Constitution of 1968.

27         (b)  "Endowment" means the Lawton Chiles Endowment

28  Fund.

29         (c)  "Earnings" means all income generated by

30  investments and the net change in the market value of assets.

31         (d)  "State agency" or "state agencies" means the

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                                                  SENATE AMENDMENT

    Bill No. HB 1885, 1st Eng.

    Amendment No.    





 1  Department of Health, the Department of Children and Family

 2  Services, the Department of Elderly Affairs, or the Agency for

 3  Health Care Administration, or any combination thereof, as the

 4  context indicates.

 5         (3)  LEGISLATIVE INTENT.--It is the intent of the

 6  Legislature to:

 7         (a)  Provide a perpetual source of funding for the

 8  future of state children's health programs, child welfare

 9  programs, community-based health and human services

10  initiatives, and biomedical research activities.

11         (b)  Ensure that enhancement revenues will be available

12  to finance these important initiatives.

13         (c)  Use tobacco settlement moneys to ensure the

14  financial security of vital health and human services

15  programs.

16         (d)  Encourage the development of community-based

17  solutions to strengthen and improve the quality of life of

18  Florida's most vulnerable citizens.

19         (e)  Provide funds for cancer research and

20  public-health research for diseases linked to tobacco use.

21         (4)  LAWTON CHILES ENDOWMENT FUND; CREATION; PURPOSES

22  AND USES.--

23         (a)  There is created the Lawton Chiles Endowment Fund,

24  to be administered by the State Board of Administration. The

25  endowment shall serve as a clearing trust fund not subject to

26  termination pursuant to s. 19(f), Art. III of the State

27  Constitution and shall be funded by settlement moneys received

28  from the tobacco industry. The endowment fund shall be exempt

29  from the service charges imposed by s. 215.20.

30         (b)  Funds from the endowment shall be distributed by

31  the board to trust funds of the state agencies in the amounts

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                                                  SENATE AMENDMENT

    Bill No. HB 1885, 1st Eng.

    Amendment No.    





 1  indicated by reference to the legislative appropriations for

 2  the state agencies, except as otherwise provided in this

 3  section.

 4         (c)  The state agencies shall use the funds from the

 5  endowment to enhance or support increases in clients served or

 6  in program costs in health and human services program areas.

 7         (d)  The Secretary of Health, the Secretary of Children

 8  and Family Services, the Secretary of Elderly Affairs, and the

 9  Director of Health Care Administration shall conduct meetings

10  to discuss program priorities for endowment funding prior to

11  submitting their budget requests to the Executive Office of

12  the Governor and the Legislature. The purpose of the meetings

13  shall be to gain consensus for priority requests and

14  recommended endowment funding levels for those priority

15  requests. An agency head may not designate a proxy for these

16  meetings.

17         (e)  Funds from the endowment may not be used to

18  supplant existing revenues.

19         (f)  When advised by the Revenue Estimating Conference

20  that a deficit will occur with respect to the appropriations

21  from the Tobacco Settlement Trust Fund in any fiscal year, the

22  Governor shall develop a plan of action to eliminate the

23  deficit. Before implementing the plan of action, the Governor

24  must comply with the provisions of section 216.177(2), Florida

25  Statutes. In developing the plan of action the Governor shall,

26  to the extent possible, preserve legislative policy and

27  intent, and, absent any specific directions to the contrary in

28  the General Appropriations Act, any reductions in

29  appropriations from the Tobacco Settlement Trust Fund for a

30  fiscal year shall be prorated among the purposes for which

31  funds were appropriated from the Tobacco Settlement Trust Fund

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                                                  SENATE AMENDMENT

    Bill No. HB 1885, 1st Eng.

    Amendment No.    





 1  for that year.

 2         (5)  ADMINISTRATION OF THE ENDOWMENT.--

 3         (a)  The board is authorized to invest and reinvest

 4  funds of the endowment in those securities listed in s.

 5  215.47, in accordance with the fiduciary standards set forth

 6  in s. 215.47(9) and consistent with an investment plan

 7  developed by the executive director and approved by the board.

 8  Costs and fees of the board for investment services shall be

 9  deducted from the earnings accruing to the endowment.

10         (b)  The endowment shall be managed as an annuity. The

11  investment objective shall be long-term preservation of the

12  real value of the principal and a specified regular annual

13  cash outflow for appropriation, as nonrecurring revenue. The

14  schedule of annual cash outflow shall be included within the

15  investment plan adopted pursuant to paragraph (a).

16         (c)  The board shall establish a separate account for

17  the funds of the endowment. The board shall design and operate

18  an investment portfolio that maximizes the financial return to

19  the endowment, consistent with the risks inherent in each

20  investment, and that is designed to preserve an appropriate

21  diversification of the portfolio.

22         (d)  No later than February 15, 2000, the board shall

23  report on the financial status of the endowment to the

24  Governor, the Speaker of the House of Representatives, the

25  President of the Senate, the chairs of the respective

26  appropriations and appropriate substantive committees of each

27  chamber, and the Revenue Estimating Conference. Thereafter,

28  the board shall make a status report to such persons no later

29  than August 15 and February 15 of each year.

30         (e)  Accountability for funds from the endowment which

31  have been appropriated to a state agency and distributed by

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                                                  SENATE AMENDMENT

    Bill No. HB 1885, 1st Eng.

    Amendment No.    





 1  the board shall reside with the state agency. The board is not

 2  responsible for the proper expenditure or accountability of

 3  funds from the endowment after distribution to a state agency.

 4         (f)  The board may collect a fee for service from the

 5  endowment no greater than that charged to the Florida

 6  Retirement System.

 7         (6)  AVAILABILITY OF FUNDS.--

 8         (a)  Funds from the endowment shall not be available

 9  for appropriation to a state agency until July 1, 2000.

10  Beginning July 1, 2000, the maximum annual amount of endowment

11  funds that may be appropriated shall be in accordance with the

12  following, based on earnings averaged over 3 years:

13         1.  Beginning July 1, 2000, no more than a level of

14  spending representing earnings at a rate of 3 percent.

15         2.  Beginning July 1, 2001, no more than a level of

16  spending representing earnings at a rate of 4 percent.

17         3.  Beginning July 1, 2002, no more than a level of

18  spending representing earnings at a rate of 5 percent.

19         4.  Beginning July 1, 2003, and thereafter, no more

20  than a level of spending representing earnings at a rate of 6

21  percent.

22         (b)  Notwithstanding the provisions of s. 216.301 and

23  pursuant to s. 216.351, all unencumbered balances of

24  appropriations as of June 30 or undisbursed balances as of

25  December 31 shall revert to the endowment's principal.

26         (7)  ENDOWMENT PRINCIPAL; APPROPRIATION OF

27  EARNINGS.--The following amounts are appropriated from the

28  Department of Banking and Finance Tobacco Settlement Clearing

29  Trust Fund to the Lawton Chiles Endowment Fund for Health and

30  Human Services:

31         1.  For Fiscal Year 1999-2000, $1,100,000,000;

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                                                  SENATE AMENDMENT

    Bill No. HB 1885, 1st Eng.

    Amendment No.    





 1         2.  For Fiscal Year 2000-2001, $200,000,000;

 2         3.  For Fiscal Year 2001-2002, $200,000,000; and

 3         4.  For Fiscal Year 2002-2003, $200,000,000.

 4         Section 2.  Section 215.5602, Florida Statutes, is

 5  created to read:

 6         215.5602  Florida Biomedical Research Program.--

 7         (1)  There is established within the Lawton Chiles

 8  Endowment Fund the Florida Biomedical Research Program to

 9  support research initiatives that address the health care

10  problems of Floridians in the areas of cancer, cardiovascular

11  disease, stroke, and pulmonary disease. The long-term goals of

12  the program are to:

13         (a)  Improve the health of Floridians by researching

14  better treatments for cancer, cardiovascular disease, stroke,

15  and pulmonary disease.

16         (b)  Expand the foundation of biomedical knowledge

17  relating to the diagnosis and treatment of diseases related to

18  tobacco use, including cancer, cardiovascular disease, stroke,

19  and pulmonary disease.

20         (c)  Improve the quality of the state's academic health

21  centers by bringing the advances of biomedical research into

22  the training of physicians and other health care providers.

23         (d)  Increase the state's per capita funding for

24  biomedical research by undertaking new initiatives in

25  biomedical research that will attract additional funding from

26  outside the state.

27         (e)  Stimulate economic activity in the state in areas

28  related to biomedical research, such as the research and

29  production of pharmaceuticals, biotechnology, and medical

30  devices.

31         (2)  Funds appropriated from the Lawton Chiles

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                                                  SENATE AMENDMENT

    Bill No. HB 1885, 1st Eng.

    Amendment No.    





 1  Endowment Fund to the Department of Health for the purposes of

 2  this section shall be used exclusively for the award of grants

 3  and fellowships under the program established in this section;

 4  for research relating to the diagnosis and treatment of

 5  diseases related to tobacco use, including cancer,

 6  cardiovascular disease, stroke, and pulmonary disease; and for

 7  expenses incurred in the administration of this section.

 8         (3)  There is created within the Department of Health

 9  the Biomedical Research Advisory Council.

10         (a)  The council shall consist of nine members,

11  including:  the chief executive officer of the Florida

12  Division of the American Cancer Society, or a designee; the

13  chief executive officer of the Florida/Puerto Rico Affiliate

14  of the American Heart Association, or a designee; and the

15  chief executive officer of the American Lung Association of

16  Florida, or a designee. The Governor shall appoint the

17  remaining six members of the council, as follows:

18         1.  Two members with expertise in the field of

19  biomedical research.

20         2.  One member with expertise in the field of

21  behavioral or social research.

22         3.  One member from a professional medical

23  organization.

24         4.  One member from a research university in the state.

25         5.  One member representing the general population of

26  the state.

27

28  In making his appointments, the Governor shall select

29  primarily, but not exclusively, Floridians with biomedical and

30  lay expertise in the general areas of cancer, cardiovascular

31  disease, stroke, and pulmonary disease. The Governor's

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                                                  SENATE AMENDMENT

    Bill No. HB 1885, 1st Eng.

    Amendment No.    





 1  appointments shall be for a 3-year term and shall reflect the

 2  diversity of the state's population. A council member

 3  appointed by the Governor may not serve more than two

 4  consecutive terms.

 5         (b)  The council shall adopt internal organizational

 6  procedures as necessary for its efficient organization.

 7         (c)  The department shall provide such staff,

 8  information, and other assistance as is reasonably necessary

 9  to assist the council in carrying out its responsibilities.

10         (d)  Members of the council shall serve without

11  compensation, but may receive reimbursement as provided in s.

12  112.061 for travel and other necessary expenses incurred in

13  the performance of their official duties.

14         (4)  The council shall advise the Secretary of Health

15  as to the direction and scope of the biomedical research

16  program. The responsibilities of the council may include, but

17  are not limited to:

18         (a)  Providing advice on program priorities and

19  emphases.

20         (b)  Providing advice on the overall program budget.

21         (c)  Participating in periodic program evaluation.

22         (d)  Assisting in the development of guidelines to

23  ensure fairness, neutrality, and adherence to the principles

24  of merit and quality in the conduct of the program.

25         (e)  Assisting in the development of appropriate

26  linkages to nonacademic entities, such as voluntary

27  organizations, health care delivery institutions, industry,

28  government agencies, and public officials.

29         (f)  Developing criteria and standards for the award of

30  research grants.

31         (g)  Developing administrative procedures relating to

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                                                  SENATE AMENDMENT

    Bill No. HB 1885, 1st Eng.

    Amendment No.    





 1  solicitation, review, and award of research grants and

 2  fellowships, to ensure an impartial, high-quality peer review

 3  system.

 4         (h)  Developing and supervising research peer review

 5  panels.

 6         (i)  Reviewing reports of peer review panels and making

 7  recommendations for research grants and fellowships.

 8         (j)  Developing and providing oversight regarding

 9  mechanisms for the dissemination of research results.

10         (5)(a)  Applications for biomedical research funding

11  under the program may be submitted from any university or

12  established research institute in the state. All qualified

13  investigators in the state, regardless of institution

14  affiliation, shall have equal access and opportunity to

15  compete for the research funding.

16         (b)  Grants and fellowships shall be awarded by the

17  Secretary of Health, after consultation with the council, on

18  the basis of scientific merit, as determined by an open

19  competitive peer review process that ensures objectivity,

20  consistency, and high quality. The following types of

21  applications shall be considered for funding:

22         1.  Investigator-initiated research grants.

23         2.  Institutional research grants.

24         3.  Predoctoral and postdoctoral research fellowships.

25         (6)  To ensure that all proposals for research funding

26  are appropriate and are evaluated fairly on the basis of

27  scientific merit, the Secretary of Health, in consultation

28  with the council, shall appoint a peer review panel of

29  independent, scientifically qualified individuals to review

30  the scientific content of each proposal and establish its

31  scientific priority score. The priority scores shall be

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                                                  SENATE AMENDMENT

    Bill No. HB 1885, 1st Eng.

    Amendment No.    





 1  forwarded to the council and must be considered in determining

 2  which proposals shall be recommended for funding.

 3         (7)  The council and the peer review panel shall

 4  establish and follow rigorous guidelines for ethical conduct

 5  and adhere to a strict policy with regard to conflict of

 6  interest. No member of the council or panel shall participate

 7  in any discussion or decision with respect to a research

 8  proposal by any firm, entity, or agency with which the member

 9  is associated as a member of the governing body or as an

10  employee, or with which the member has entered into a

11  contractual arrangement. Meetings of the council and the peer

12  review panels shall be subject to the provisions of chapter

13  119, s. 286.011, and s. 24, Art. I of the State Constitution.

14         (8)  The department may contract on a competitive-bid

15  basis with an appropriate entity to administer the program.

16  Administrative expenses may not exceed 15 percent of the total

17  funds available to the program in any given year.

18         (9)  The department, after consultation with the

19  council, may adopt rules as necessary to implement this

20  section.

21         (10)  The council shall submit an annual progress

22  report on the state of biomedical research in this state to

23  the Governor, the Secretary of Health, the President of the

24  Senate, and the Speaker of the House of Representatives by

25  February 1. The report must include:

26         (a)  A list of research projects supported by grants or

27  fellowships awarded under the program.

28         (b)  A list of recipients of program grants or

29  fellowships.

30         (c)  A list of publications in peer reviewed journals

31  involving research supported by grants or fellowships awarded

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                                                  SENATE AMENDMENT

    Bill No. HB 1885, 1st Eng.

    Amendment No.    





 1  under the program.

 2         (d)  The total amount of biomedical research funding

 3  currently flowing into the state.

 4         (e)  New grants for biomedical research which were

 5  funded based on research supported by grants or fellowships

 6  awarded under the program.

 7         (f)  Progress in the treatment of diseases related to

 8  tobacco use, including cancer, cardiovascular disease, stroke,

 9  and pulmonary disease.

10         Section 3.  This act shall take effect July 1, 1999.

11

12

13  ================ T I T L E   A M E N D M E N T ===============

14  And the title is amended as follows:

15         Delete everything before the enacting clause

16

17  and insert:

18                      A bill to be entitled

19         An act relating to trust funds; creating s.

20         215.5601, F.S.; creating the Lawton Chiles

21         Endowment Fund for Health and Human Services;

22         providing definitions; providing legislative

23         intent; specifying the purposes and uses of

24         endowment funds; providing for administration

25         of the endowment by the State Board of

26         Administration; providing for the availability

27         of endowment funds; providing appropriations;

28         providing for a plan of action when a deficit

29         will occur with respect to appropriations from

30         the Tobacco Settlement Trust Fund; creating s.

31         215.5602, F.S.; establishing the Florida

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                                                  SENATE AMENDMENT

    Bill No. HB 1885, 1st Eng.

    Amendment No.    





 1         Biomedical Research Program within the Lawton

 2         Chiles Endowment Fund; providing the goals of

 3         the program; specifying the use of funds

 4         appropriated under the program; creating the

 5         Biomedical Research Advisory Council within the

 6         Department of Health; providing for membership

 7         of the council; providing reimbursement for

 8         travel and other expenses for council members;

 9         providing duties of the council; providing for

10         applications for funding under the program;

11         requiring the Secretary of Health to award

12         grants and fellowships, in consultation with

13         the council; providing for the appointment of a

14         peer review council to review proposals for

15         funding; requiring the Department of Health to

16         contract with an entity to administer the

17         program; providing rulemaking authority;

18         requiring the council to submit an annual

19         report to the Governor, the Secretary of

20         Health, and the Legislature; providing an

21         effective date.

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