Senate Bill 2468c1

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    Florida Senate - 1999                           CS for SB 2468

    By the Committee on Fiscal Resource and Senator Kirkpatrick





    314-2156-99

  1                      A bill to be entitled

  2         An act relating to economic development;

  3         expressing legislative intent to foster the

  4         development of the health technology industry;

  5         amending s. 499.015, F.S.; exempting certain

  6         medical device manufacturers from specified

  7         registration and fee provisions of the Florida

  8         Drug and Cosmetic Act; requiring documentation

  9         to support such exemption from the act;

10         requiring the State University System and the

11         University of Miami to report to the

12         Legislature on evaluation of certain business

13         incubator, clinical trial, intellectual

14         property, and technology transfer activities;

15         requiring consultation with specified entities

16         as part of such evaluation; encouraging the

17         State Board of Community Colleges to continue

18         its efforts on the development of curriculum to

19         support the workforce needs of the health

20         technology industry; directing Enterprise

21         Florida, Inc., and the Department of Banking

22         and Finance to evaluate ch. 517, F.S., to

23         determine its impact on the ability of health

24         technology firms to raise capital; providing an

25         effective date.

26

27         WHEREAS, Enterprise Florida, Inc., has a sector

28  strategy devoted to Florida's health technology industry, and

29         WHEREAS, the health technology industry represents a

30  valued and growing sector of Florida's economy, and

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    Florida Senate - 1999                           CS for SB 2468
    314-2156-99




  1         WHEREAS, the health technology industry employs more

  2  than 250,000 Floridians at a high average wage and is a

  3  significant contributor to state and local tax revenue, and

  4         WHEREAS, the health technology industry is dominated by

  5  small employers and entrepreneurs that look to the state, its

  6  communities, economic development organizations, community

  7  colleges, and universities to provide an environment that will

  8  nurture its development, and

  9         WHEREAS, the health technology industry improves the

10  quality of life for all Floridians, and

11         WHEREAS, the Florida Legislature recognizes the

12  importance of this industry to our state, NOW, THEREFORE,

13

14  Be It Enacted by the Legislature of the State of Florida:

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16         Section 1.  It is the intent of the Legislature to

17  encourage and facilitate the location and expansion of the

18  state's health technology industry. This industry sector

19  creates high-wage, value-added jobs that strengthen and

20  diversify the state's economy.

21         Section 2.  Subsections (8) and (9) are added to

22  section 499.015, Florida Statutes, 1998 Supplement, to read:

23         499.015  Registration of drugs, devices, and cosmetics;

24  issuance of certificates of free sale.--

25         (8)  Notwithstanding any requirements set forth in ss.

26  499.001-499.081, a manufacturer of medical devices who is

27  registered with the Federal Food and Drug Administration is

28  exempt from this section and s. 499.041(6) if:

29         (a)  The manufacturer's medical devices are approved

30  for marketing by, or listed with, the Federal Food and Drug

31

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    Florida Senate - 1999                           CS for SB 2468
    314-2156-99




  1  Administration in accordance with federal law for commercial

  2  distribution; or

  3         (b)  The manufacturer subcontracts with a manufacturer

  4  of medical devices to manufacture components of such devices.

  5         (9)  However, the manufacturer must submit evidence of

  6  such registration, listing, or approval with its initial

  7  application for a permit to do business in this state, as

  8  required in s. 499.013 and any changes to such information

  9  previously submitted at the time of renewal of the permit.

10  Evidence of approval, listing, and registration by the Federal

11  Food and Drug Administration must include:

12         (a)  For Class II devices, a copy of the premarket

13  notification letter (510K);

14         (b)  For Class III devices, a Federal Food and Drug

15  Administration premarket approval number;

16         (c)  For a manufacturer who subcontracts with a

17  manufacturer of medical devices to manufacture components of

18  such devices, a Federal Food and Drug Administration

19  registration number; or

20         (d)  For a manufacturer of medical devices whose

21  devices are exempt from premarket approval by the Federal Food

22  and Drug Administration, a Federal Food and Drug

23  Administration registration number.

24         Section 3.  The State University System and the

25  University of Miami shall evaluate the feasibility of

26  establishing additional health technology business incubators

27  similar to the University of Florida's Sid Martin

28  Biotechnology Institute at appropriate state universities or

29  the University of Miami, and the feasibility of enhancing and

30  expanding current facilities to support health technology

31  companies.  The State University System and the University of

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    Florida Senate - 1999                           CS for SB 2468
    314-2156-99




  1  Miami shall evaluate establishing cooperative clinical trial

  2  programs in conjunction with their medical schools.  The State

  3  University System shall also evaluate and recommend ways to

  4  support, improve, encourage, and facilitate the creation of

  5  and the collaboration with Florida-based businesses in

  6  licensing State University System intellectual property, and

  7  the collaboration of State University System employees with

  8  Florida businesses in research and technology transfer

  9  efforts.  The State University System and the University of

10  Miami shall consult with the Health Technology Advisory

11  Council of Enterprise Florida, Inc., and Bio+Florida as part

12  of these evaluations and recommendations.  The State

13  University System and the University of Miami shall report

14  their recommendations to the Governor, the President of the

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

16  December 1, 1999.

17         Section 4.  The State Board of Community Colleges is

18  encouraged to continue its efforts to develop health

19  technology curricula to support the industry's workforce

20  needs.  The State Community College System shall report its

21  results to the Governor, the President of the Senate, and the

22  Speaker of the House of Representatives by December 1, 1999.

23         Section 5.  Enterprise Florida, Inc., and the

24  Department of Banking and Finance are encouraged to continue

25  their efforts to enhance opportunities for small-capital

26  formation in Florida while providing appropriate protections

27  for Florida investors.  Enterprise Florida, Inc., and the

28  Department of Banking and Finance shall evaluate chapter 517,

29  Florida Statutes, to determine its impact on the ability of

30  Florida's Health Technology firms to raise capital.

31         Section 6.  This act shall take effect July 1, 1999.

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    Florida Senate - 1999                           CS for SB 2468
    314-2156-99




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                             SB 2468

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  4  This committee substitute removes the bill's tax exemption for
    the health technology industry and reduces the fiscal impact
  5  of the bill to insignificant. It also amends recommendations
    to Community Colleges and Enterprise Florida concerning
  6  industry promotion.

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