House Bill 0951
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Florida House of Representatives - 1999 HB 951
By Representative Crist
1 A bill to be entitled
2 An act relating to the health technology
3 industry; providing intent; amending s. 212.08,
4 F.S.; revising the exemption from the tax on
5 sales, use, and other transactions for
6 machinery and equipment used in silicon
7 technology production and research and
8 development, to include machinery and equipment
9 used by health technology facilities to produce
10 health technology products, and machinery and
11 equipment used in research and development or
12 manufacturing in a health technology facility;
13 providing a definition; amending s. 499.015,
14 F.S.; providing that certain medical device
15 manufacturers are exempt from registration and
16 payment of fees under the Florida Drug and
17 Cosmetic Act; requiring submission of certain
18 documentation; directing the State University
19 System and the University of Miami to perform
20 certain evaluations relating to health
21 technology business incubators and health
22 technology companies, certain clinical trial
23 programs, and certain interaction with the
24 State University System; requiring a report;
25 encouraging the State Board of Community
26 Colleges to develop health technology
27 curricula; requiring a report by the State
28 Community College System; directing the
29 Division of Securities of the Office of the
30 Comptroller to form a task force to review ch.
31 517, F.S., to enhance opportunities for health
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Florida House of Representatives - 1999 HB 951
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1 technology firms to raise capital; requiring a
2 report; providing an effective date.
3
4 WHEREAS, Enterprise Florida, Inc., has a sector
5 strategy devoted to Florida's health technology industry, and
6 WHEREAS, the health technology industry represents a
7 valued and growing sector of Florida's economy, and
8 WHEREAS, this industry employs over 250,000 Floridians
9 at a high average wage, and
10 WHEREAS, this industry is a significant contributor of
11 state and local tax revenue, and
12 WHEREAS, this industry is dominated by small employers
13 and entrepreneurs that look to the state, its communities,
14 economic development organizations, and community colleges and
15 universities to provide an environment that will nurture its
16 development, and
17 WHEREAS, this industry improves the quality of life for
18 all Floridians, and
19 WHEREAS, the Florida Legislature recognizes the
20 importance of this industry to our state, NOW, THEREFORE,
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Legislative intent.--It is the intent of
25 the Legislature to encourage and facilitate the location and
26 expansion of the state's health technology industry. This
27 industry sector creates high-wage, value-added jobs which
28 strengthen and diversify the state's economy.
29 Section 2. Paragraph (j) of subsection (5) of section
30 212.08, Florida Statutes, 1998 Supplement, is amended to read:
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Florida House of Representatives - 1999 HB 951
537-275-99
1 212.08 Sales, rental, use, consumption, distribution,
2 and storage tax; specified exemptions.--The sale at retail,
3 the rental, the use, the consumption, the distribution, and
4 the storage to be used or consumed in this state of the
5 following are hereby specifically exempt from the tax imposed
6 by this chapter.
7 (5) EXEMPTIONS; ACCOUNT OF USE.--
8 (j) Machinery and equipment used in health technology
9 and silicon technology production and research and
10 development.--
11 1. Industrial machinery and equipment purchased for
12 use in silicon technology facilities certified under
13 subparagraph 5. to manufacture, process, compound, or produce
14 health technology or silicon technology products for sale or
15 for use by these facilities are exempt from the tax imposed by
16 this chapter.
17 2. Machinery and equipment are exempt from the tax
18 imposed by this chapter if purchased for use predominately in
19 research and development or manufacturing in a health
20 technology facility certified under subparagraph 5., or if
21 purchased for use predominately in silicon wafer research and
22 development activities in a silicon technology research and
23 development facility certified under subparagraph 5.
24 3. In addition to meeting the criteria mandated by
25 subparagraph 1. or subparagraph 2., a business must be
26 certified by the Office of Tourism, Trade, and Economic
27 Development as authorized in this paragraph in order to
28 qualify for exemption under this paragraph.
29 4. For items purchased tax exempt pursuant to this
30 paragraph, possession of a written certification from the
31 purchaser, certifying the purchaser's entitlement to exemption
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Florida House of Representatives - 1999 HB 951
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1 pursuant to this paragraph, relieves the seller of the
2 responsibility of collecting the tax on the sale of such
3 items, and the department shall look solely to the purchaser
4 for recovery of tax if it determines that the purchaser was
5 not entitled to the exemption.
6 5.a. To be eligible to receive the exemption provided
7 by subparagraph 1. or subparagraph 2., a qualifying business
8 entity shall apply to Enterprise Florida, Inc. The application
9 shall be developed by the Office of Tourism, Trade, and
10 Economic Development in consultation with Enterprise Florida,
11 Inc.
12 b. Enterprise Florida, Inc., shall review each
13 submitted application and information and determine whether or
14 not the application is complete within 5 working days. Once an
15 application is complete, Enterprise Florida, Inc., shall,
16 within 10 working days, evaluate the application and recommend
17 approval or disapproval of the application to the Office of
18 Tourism, Trade, and Economic Development.
19 c. Upon receipt of the application and recommendation
20 from Enterprise Florida, Inc., the Office of Tourism, Trade,
21 and Economic Development shall certify within 5 working days
22 those applicants who are found to meet the requirements of
23 this section and notify the applicant, Enterprise Florida,
24 Inc., and the department of the certification. If the Office
25 of Tourism, Trade, and Economic Development finds that the
26 applicant does not meet the requirements of this section, it
27 shall notify the applicant and Enterprise Florida, Inc.,
28 within 10 working days that the application for certification
29 has been denied and the reasons for denial. The Office of
30 Tourism, Trade, and Economic Development has final approval
31 authority for certification under this section.
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1 6.a. A business certified to receive this exemption
2 may apply once each year for the exemption.
3 b. The first claim submitted by a business may include
4 all eligible expenditures made after the date the business was
5 certified.
6 c. To apply for the annual exemption, the business
7 shall submit a claim to the Office of Tourism, Trade, and
8 Economic Development, which claim indicates and documents the
9 sales and use taxes otherwise payable on eligible machinery
10 and equipment. The claim must also indicate, for program
11 evaluation purposes only, the average number of full-time
12 equivalent employees at the facility over the preceding
13 calendar year, the average wage and benefits paid to those
14 employees over the preceding calendar year, and the total
15 investment made in real and tangible personal property over
16 the preceding calendar year or, for the first claim submitted,
17 since the date of certification. The department shall assist
18 the Office of Tourism, Trade, and Economic Development in
19 evaluating and verifying information provided in the
20 application for exemption.
21 d. The Office of Tourism, Trade, and Economic
22 Development may use the information reported on the claims for
23 evaluation purposes only and shall prepare an annual report on
24 the exemption program and its cost and impact. The annual
25 report for the preceding fiscal year shall be submitted to the
26 Governor, the President of the Senate, and the Speaker of the
27 House of Representatives by September 30 of each fiscal year.
28 This report may be submitted in conjunction with the annual
29 report required in s. 288.095(3)(c).
30 7. A business certified to receive this exemption may
31 elect to designate one or more state universities or community
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1 colleges as recipients of up to 100 percent of the amount of
2 the exemption for which they may qualify. To receive these
3 funds, the institution must agree to match the funds so earned
4 with equivalent cash, programs, services, or other in-kind
5 support on a one-to-one basis in the pursuit of research and
6 development projects as requested by the certified business.
7 The rights to any patents, royalties, or real or intellectual
8 property must be vested in the business unless otherwise
9 agreed to by the business and the university or community
10 college.
11 8. As used in this paragraph, the term:
12 a. "Predominately" means at least 50 percent of the
13 time in qualifying research and development.
14 b. "Research and development" means basic and applied
15 research in the science or engineering, as well as the design,
16 development, and testing of prototypes or processes of new or
17 improved products. Research and development does not include
18 market research, routine consumer product testing, sales
19 research, research in the social sciences or psychology,
20 nontechnological activities, or technical services.
21 c. "Silicon technology products" means raw silicon
22 wafers that are transformed into semiconductor memory or logic
23 wafers, including wafers containing mixed memory and logic
24 circuits; related assembly and test operations; active-matrix
25 flat panel displays; semiconductor chips; and related silicon
26 technology products as determined by the Office of Tourism,
27 Trade, and Economic Development.
28 d. "Health technology products" means drugs; surgical,
29 medical, and dental instruments and supplies, ophthalmic
30 goods, laboratory apparatus, and laboratory analytical
31 instruments; optical instruments and lenses; and related
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1 health technology products as determined by the Office of
2 Tourism, Trade, and Economic Development.
3 Section 3. Subsection (8) is added to section 499.015,
4 Florida Statutes, 1998 Supplement, to read:
5 499.015 Registration of drugs, devices, and cosmetics;
6 issuance of certificates of free sale.--
7 (8) Notwithstanding any other requirement in ss.
8 499.001-499.081, medical device manufacturers whose devices
9 are approved by and registered and listed with the United
10 States Food and Drug Administration are exempt from the
11 provisions of this section and s. 499.041(6). However, the
12 manufacturer must submit evidence of such registration,
13 listing, and approval at the time it submits its application
14 for a permit to do business in the state as required by s.
15 499.013(2)(d). Evidence of United States Food and Drug
16 Administration approval and registration includes:
17 (a) A copy of the premarket notification letter (510K)
18 for class II devices;
19 (b) A United States Food and Drug Administration
20 premarket approval number for class III devices;
21 (c) A United States Food and Drug Administration
22 registration number for subcontract medical device
23 manufacturers who manufacture components of devices for
24 manufacturers; or
25 (d) A United States Food and Drug Administration
26 registration number for medical device manufacturers whose
27 devices are exempt from premarket approval.
28 Section 4. The State University System and the
29 University of Miami shall evaluate the feasibility of
30 establishing additional health technology business incubators
31 similar to the University of Florida's Sid Martin
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1 Biotechnology Institute at appropriate state universities or
2 the University of Miami, and the feasibility of enhancing and
3 expanding current facilities to support health technology
4 companies. The State University System and the University of
5 Miami shall evaluate establishing cooperative clinical trial
6 programs in conjunction with their medical schools. The State
7 University System shall also evaluate and recommend ways to
8 support, improve, encourage, and facilitate the creation of
9 and the collaboration with Florida-based businesses in
10 licensing State University System intellectual property, and
11 the collaboration of State University System employees with
12 Florida businesses in research and technology transfer
13 efforts. The State University System and the University of
14 Miami shall consult with the Health Technology Advisory
15 Council of Enterprise Florida, Inc., and Bio+Florida as part
16 of these evaluations and recommendations. The State
17 University System and the University of Miami shall report
18 their recommendations to the Governor, the President of the
19 Senate, and the Speaker of the House of Representatives by
20 December 1, 1999.
21 Section 5. The State Board of Community Colleges is
22 encouraged to continue its efforts to develop health
23 technology curricula to support the industry's workforce
24 needs. The State Community College System shall report its
25 results to the Governor, the President of the Senate, and the
26 Speaker of the House of Representatives by December 1, 1999.
27 Section 6. The Division of Securities of the Office of
28 the Comptroller, in collaboration with the Office of Tourism,
29 Trade, and Economic Development, Enterprise Florida, Inc., and
30 its Health Technology Advisory Council, Bio+Florida, and The
31 Florida Bar, shall form a task force to review and evaluate
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Florida House of Representatives - 1999 HB 951
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1 chapter 517, Florida Statutes, to determine its impact on the
2 ability of Florida's health technology firms to raise capital.
3 The Division of Securities shall report to the Governor, the
4 President of the Senate, and the Speaker of the House of
5 Representatives, by December 1, 1999, the task force's
6 recommendations to modify and reform chapter 517, Florida
7 Statutes, to enhance opportunities for health technology firms
8 to raise capital, consistent with the protection of Florida
9 investors.
10 Section 7. This act shall take effect July 1, 1999.
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13 HOUSE SUMMARY
14
Revises the exemption from the tax on sales, use, and
15 other transactions for machinery and equipment used in
silicon technology production and research and
16 development, to include machinery and equipment used by
health technology facilities to produce health technology
17 products, and machinery and equipment used in research
and development or manufacturing in a health technology
18 facility.
19
Provides that certain medical device manufacturers are
20 exempt from registration and payment of fees under the
Florida Drug and Cosmetic Act.
21
22 Directs the State University System and the University of
Miami to perform certain evaluations relating to health
23 technology business incubators and health technology
companies, certain clinical trial programs, and certain
24 interaction with the State University System, and
requires a report. Encourages the State Board of
25 Community Colleges to develop health technology curricula
and requires a report by the State Community College
26 System. Directs the Division of Securities of the Office
of the Comptroller to form a task force to review ch.
27 517, F.S., to enhance opportunities for health technology
firms to raise capital, and requires a report.
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