Senate Bill 1334c2

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    Florida Senate - 2000                    CS for CS for SB 1334

    By the Committees on Governmental Oversight and Productivity;
    Commerce and Economic Opportunities; and Senator Klein




    302-1965-00

  1                      A bill to be entitled

  2         An act relating to information technology;

  3         requiring facilitation of a Network Access

  4         Point by the State Technology Office; requiring

  5         Enterprise Florida, Inc., to create and

  6         implement a marketing and image campaign;

  7         requiring development and maintenance of a

  8         website for information and technology industry

  9         marketing and workforce recruitment; requiring

10         a study group to explore the use of state

11         employee pension funds for venture capital

12         support; expressing support of activities to

13         enhance information technology, including a

14         Network Access Point; amending s. 212.08, F.S.;

15         providing a sales tax exemption on certain

16         equipment used to deploy broadband technologies

17         associated with a Network Access Point;

18         requiring a study by the Legislature to

19         identify obstacles related to the affordable

20         access to consumers by Internet service

21         providers; requiring a plan for the

22         establishment of information technology

23         incubators in the state; prescribing incubator

24         components; providing an effective date.

25

26         WHEREAS, to maintain economic competitiveness, it is

27  incumbent upon the state to create an entity that can

28  represent, promote, and enhance the information technology

29  industry in Florida, and

30         WHEREAS, the information technology industry is growing

31  rapidly and provides high-wage, high-skill jobs, and

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    Florida Senate - 2000                    CS for CS for SB 1334
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  1         WHEREAS, Florida can capitalize on its geographic

  2  location and human-resource assets to develop an information

  3  technology sector, and

  4         WHEREAS, Florida can be recognized as a global leader

  5  in the information technology industry, particularly in Latin

  6  America, and

  7         WHEREAS, it is in the interest of the Legislature and

  8  the State of Florida to encourage and promote new information

  9  technology businesses and to ensure that those businesses have

10  available to them technical, management, and business

11  counseling to provide the highest probability of success, NOW,

12  THEREFORE,

13

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

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16         Section 1.  Short title.--Sections 1 through 6 of this

17  act may be cited as the "itflorida.com Act of 2000."

18         Section 2.  The State Technology Office shall

19  facilitate the development of a Network Access Point (NAP) in

20  Florida as needed.

21         Section 3.  Creation and implementation of a marketing

22  and image campaign.--

23         (1)  Enterprise Florida, Inc., in collaboration with

24  the private sector, shall create a marketing campaign to help

25  attract, retain, and develop information technology businesses

26  in Florida. The campaign must be coordinated with any existing

27  Florida economic development promotion efforts and must be

28  jointly funded from private and public resources.

29         (2)  The message of the campaign must be to increase

30  national and international awareness of Florida as a state

31  ideally suited for the successful advancement of the

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    Florida Senate - 2000                    CS for CS for SB 1334
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  1  information technology business sector. Marketing strategies

  2  must include development of promotional materials, Internet

  3  and print advertising, public relations and media placement,

  4  trade show attendance at information technology events, and

  5  appropriate follow-up activities. Efforts to promote Florida

  6  as a high-tech business leader must include identification and

  7  coordination of existing business technology resources,

  8  partnerships with economic development organizations and

  9  private sector businesses, continued retention and growth of

10  Florida-based businesses that produce high-tech products or

11  use high-tech skills for manufacturing, and recruitment of new

12  business in such area.

13         Section 4.  Development of an Internet-based system for

14  information technology industry promotion and workforce

15  recruitment.--

16         (1)  The Department of Labor and Employment Security

17  shall facilitate efforts to ensure the development and

18  maintenance of a website that promotes and markets the

19  information technology industry in this state. The website

20  must be designed to inform the public concerning the scope of

21  the information technology industry in the state and must also

22  be designed to address the workforce needs of the industry.

23  The website must include, through links or actual content,

24  information concerning information technology businesses in

25  this state, including links to these businesses; information

26  concerning employment available at these businesses; and means

27  by which a jobseeker may post a resume on the website.

28         (2)  The Department of Labor and Employment Security

29  shall coordinate with the State Technology Office, the

30  Department of Management Services, the Department of Labor and

31  Employment Security, and the Workforce Development Board of

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    Florida Senate - 2000                    CS for CS for SB 1334
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  1  Enterprise Florida, Inc., to ensure links, where feasible and

  2  appropriate, to existing job-information websites maintained

  3  by the state and its agencies and to ensure that information

  4  technology positions offered by the state and its agencies are

  5  posted on the information technology website.

  6         Section 5.  Enterprise Florida shall establish a study

  7  group to explore the feasibility of using state-employee

  8  pension funds to support venture-capital funds that are either

  9  domiciled in Florida or regularly invest in technology

10  companies that are headquartered in this state. If the study

11  group determines that this concept is feasible, the group

12  shall prepare a working proposal governing the use of such

13  funds, including any recommendations for action by the

14  Legislature. Enterprise Florida shall submit a report on the

15  findings of the study group and the working proposal, if

16  prepared, to the Governor, the President of the Senate, and

17  the Speaker of the House of Representatives by October 1,

18  2000.

19         Section 6.  Establishment of a Network Access

20  Point.--The state actively supports efforts that enhance the

21  information technology industry in Florida, particularly those

22  efforts that increase broadband technology. A critical

23  initiative to enhance this industry in Florida is determined

24  to be the development of a Network Access Point (NAP), a

25  carrier-neutral public-private Internet traffic exchange

26  point. The state encourages private information technology

27  businesses to forge partnerships to develop a NAP in Florida.

28  Moreover, the state recognizes the importance of a NAP that

29  addresses the needs of small information technology

30  businesses.

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    Florida Senate - 2000                    CS for CS for SB 1334
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  1         Section 7.  Paragraph (n) is added to subsection (5) of

  2  section 212.08, Florida Statutes, to read:

  3         212.08  Sales, rental, use, consumption, distribution,

  4  and storage tax; specified exemptions.--The sale at retail,

  5  the rental, the use, the consumption, the distribution, and

  6  the storage to be used or consumed in this state of the

  7  following are hereby specifically exempt from the tax imposed

  8  by this chapter.

  9         (5)  EXEMPTIONS; ACCOUNT OF USE.--

10         (n)  Equipment used to deploy broadband technologies.--

11         1.  Beginning July 1, 2000, equipment purchased by a

12  communications service provider which is necessary for use in

13  the deployment of broadband technologies in the state as part

14  of the direct participation by the communications service

15  provider in the Network Access Point (NAP), or

16  carrier-neutral, public-private Internet traffic exchange

17  point, in this state shall be exempt from the tax imposed by

18  this chapter. This exemption inures to the communications

19  service provider only through a refund of previously paid

20  taxes. A refund shall be authorized upon an affirmative

21  showing by the taxpayer to the satisfaction of the department

22  that the requirements of this paragraph have been met.

23         2.  To be entitled to a refund, an eligible

24  communications service provider must file under oath with the

25  department an application that includes:

26         a.  The name and address of the communications service

27  provider claiming to be entitled to the refund.

28         b.  A specific description of the property for which

29  the exemption is sought, including its serial number or other

30  permanent identification number.

31         c.  The location of the property.

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    Florida Senate - 2000                    CS for CS for SB 1334
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  1         d.  The sales invoice or other proof of purchase of the

  2  property, showing the amount of sales tax paid, the date of

  3  purchase, and the name and address of the sales tax dealer

  4  from whom the property was purchased.

  5         3.  An application for a refund pursuant to this

  6  paragraph must be submitted to the department within 6 months

  7  after the eligible property is purchased.

  8         4.  The provisions of s. 212.095 do not apply to any

  9  refund application made pursuant to this paragraph. The

10  department shall adopt rules governing the manner and form of

11  refund applications and may establish guidelines as to the

12  requisites for an affirmative showing of qualification for

13  exemption under this paragraph.

14         5.  For the purposes of this paragraph, the term:

15         a.  "Broadband technology" means packetized technology

16  that has the capability of supporting transmission speeds of

17  at least 1.544 megabits per second in both directions.

18         b.  "Communications service provider" means a company

19  that supports or provides individuals and other companies with

20  access to the Internet and other related services.

21         c.  "Equipment" includes Asynchronous Transfer Mode

22  switches, Digital Subscriber Line Access Multiplexers,

23  routers, servers, multiplexers, fiber optic connector

24  equipment, database equipment, and other network equipment

25  used to provide broadband technology and information services.

26         6.  The provisions of this paragraph expire June 30,

27  2005.

28         Section 8.  By October 1, 2000, the Legislature,

29  through its appropriate committee structure, and using the

30  resources of the Governor's Chief Technology Officer and the

31  Information Service Technology Task Force, shall perform a

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    Florida Senate - 2000                    CS for CS for SB 1334
    302-1965-00




  1  study that identifies obstacles related to the ability of

  2  Internet service providers to have affordable access to

  3  consumers, including, when appropriate, the identification of

  4  solutions that potentially eliminate such obstacles.

  5         Section 9.  Establishment of information technology

  6  business incubators.--

  7         (1)  To foster the growth of the information technology

  8  industry in this state, Enterprise Florida shall review the

  9  state's existing business incubators to determine whether they

10  are meeting the needs of the industry.  If Enterprise Florida

11  finds that additional incubators are needed to fill an unmet

12  need, it must develop a plan to establish information

13  technology business incubators in this state. The plan may

14  include recommendations for consideration by the Legislature

15  which promote the location of private information technology

16  business incubators in the state, or it may include

17  recommendations to establish or promote information technology

18  business incubators associated with public or private

19  universities or colleges in this state. If the plan recommends

20  the establishment of an incubator that would be associated

21  with a university or college, the plan must provide for the

22  financial self-sufficiency of the incubator within 2 years.

23  The review and the plan, if developed, must be presented to

24  the Governor, the President of the Senate, and the Speaker of

25  the House of Representatives by December 1, 2000.

26         (2)  For the purposes of this section, an information

27  technology business incubator is a facility that allows new

28  businesses engaged in information technology to increase their

29  probability of success through sharing needed equipment,

30  services, and facilities, including substantially all of the

31  following:

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    Florida Senate - 2000                    CS for CS for SB 1334
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  1         (a)  Reception and meeting areas.

  2         (b)  Secretarial services.

  3         (c)  Accounting and bookkeeping services.

  4         (d)  Research libraries.

  5         (e)  Onsite financial, management, legal, and technical

  6  counseling.

  7         (f)  Flexible lease arrangements for flexible space.

  8         (g)  Computer and word-processing facilities.

  9         (h)  Office furniture rentals.

10         (i)  Management and entrepreneurial training programs.

11         Section 10.  This act shall take effect upon becoming a

12  law.

13

14          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
15                            CS/SB 1334

16

17  Eliminates language creating the not-for-profit corporation
    known as itflorida.com.
18
    Requires the State Technology Office to facilitate the
19  development of a Network Access Point (NAP) in Florida as
    needed.
20
    Requires the Department of Labor and Employment Security to
21  facilitate the development and maintenance of a website that
    promotes and markets the information technology industry in
22  Florida.

23  Requires Enterprise Florida, in collaboration with the private
    sector, to create a marketing campaign to attract information
24  technology businesses in Florida.

25  Requires Enterprise Florida to establish a study group to
    explore the feasibility of using state employee pension funds
26  to support venture capital funds that are domiciled in
    Florida.
27

28

29

30

31

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