House Bill 2401

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    Florida House of Representatives - 2000                HB 2401

        By the Committee on Utilities & Communications and
    Representative Rojas





  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         providing purposes of the campaign; requiring

  8         development and maintenance of a website for

  9         information and technology industry marketing

10         and workforce recruitment; requiring a study

11         group to explore the use of state employee

12         pension funds for venture capital support for

13         certain purposes; expressing support of

14         activities to enhance information technology,

15         including a network access point; amending s.

16         212.08, F.S.; providing a sales tax exemption

17         on sales of certain equipment used to deploy

18         broadband technologies associated with a

19         network access point; providing for future

20         repeal of the exemption; requiring Enterprise

21         Florida, Inc., to review existing business

22         incubators and develop a plan to establish

23         information technology business incubators in

24         the state under certain circumstances;

25         prescribing incubator components; requiring

26         submission of the plan to the Governor and

27         Legislature; providing an effective date.

28

29         WHEREAS, the information technology industry is growing

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

31

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    Florida House of Representatives - 2000                HB 2401

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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:

15

16         Section 1.  The State Technology Office shall

17  facilitate the development of a network access point in this

18  state, as needed.

19         Section 2.  Creation and implementation of a marketing

20  and image campaign.--

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

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

23  attract, develop, and retain information technology businesses

24  in this state. The campaign must be coordinated with any

25  existing economic development promotion efforts in this state,

26  and shall be jointly funded from private and public resources.

27         (2)  The message of the campaign shall be to increase

28  national and international awareness of this state as a state

29  ideally suited for the successful advancement of the

30  information technology business sector. Marketing strategies

31  shall include development of promotional materials, Internet

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    Florida House of Representatives - 2000                HB 2401

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  1  and print advertising, public relations and media placement,

  2  trade show attendance at information technology events, and

  3  appropriate followup activities. Efforts to promote this state

  4  as a high-technology business leader must include

  5  identification and coordination of existing business

  6  technology resources, partnerships with economic development

  7  organizations and private sector businesses, continued

  8  retention and growth of businesses based in this state that

  9  produce high-technology products or use high-technology skills

10  for manufacturing, and recruitment of new business in such

11  area.

12         Section 3.  Development of an Internet-based system for

13  information technology industry promotion and workforce

14  recruitment.--

15         (1)  The Department of Labor and Employment Security

16  shall facilitate efforts to ensure the development and

17  maintenance of a website that promotes and markets the

18  information technology industry in this state. The website

19  shall be designed to inform the public concerning the scope of

20  the information technology industry in the state and shall

21  also be designed to address the workforce needs of the

22  industry. The website shall include, through links or actual

23  content, information concerning information technology

24  businesses in this state, including links to such businesses;

25  information concerning employment available at these

26  businesses; and the means by which a jobseeker may post a

27  resume on the website.

28         (2)  The Department of Labor and Employment Security

29  shall coordinate with the State Technology Office and the

30  Workforce Development Board of Enterprise Florida, Inc., to

31  ensure links, where feasible and appropriate, to existing job

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    Florida House of Representatives - 2000                HB 2401

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  1  information websites maintained by the state and state

  2  agencies and to ensure that information technology positions

  3  offered by the state and state agencies are posted on the

  4  information technology website.

  5         Section 4.  Enterprise Florida, Inc., shall establish a

  6  study group to explore the feasibility of using state employee

  7  pension funds to support venture capital funds that are either

  8  domiciled in this state or regularly invest in technology

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

10  group determines that this concept is feasible, the group

11  shall prepare a working proposal governing the use of such

12  funds, including any recommendations for action by the

13  Legislature. Enterprise Florida, Inc., shall submit a report

14  on the findings of the study group and, if prepared, the

15  working proposal to the Governor, the President of the Senate,

16  and the Speaker of the House of Representatives by October 1,

17  2000.

18         Section 5.  Establishment of a network access

19  point.--The state actively supports efforts that enhance the

20  information technology industry in this state, particularly

21  those efforts that increase broadband technology. A critical

22  initiative to enhance this industry in this state is

23  determined to be the development of a network access point,

24  which is defined to be a carrier-neutral, public-private

25  Internet traffic exchange point. The state encourages private

26  information technology businesses to forge partnerships to

27  develop a network access point in this state. Moreover, the

28  state recognizes the importance of a network access point that

29  addresses the needs of small information technology

30  businesses.

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  1         Section 6.  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 that 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 a network access point, which is defined as a

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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  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 purposes of this paragraph:

15         a.  "Broadband technology" means packaged 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.  This paragraph is repealed June 30, 2005.

27         Section 7.  Establishment of information technology

28  business incubators.--

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

30  industry in this state, Enterprise Florida, Inc., shall review

31  the state's existing business incubators to determine whether

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  1  they are meeting the needs of the industry. If Enterprise

  2  Florida, Inc., finds that additional incubators are needed to

  3  fill an unmet need, Enterprise Florida, Inc., must develop a

  4  plan to establish information technology business incubators

  5  in this state. The plan may include recommendations for

  6  consideration by the Legislature which promote the location of

  7  private information technology business incubators in this

  8  state or recommendations to establish or promote information

  9  technology business incubators associated with public or

10  private universities or colleges in this state. If the plan

11  recommends the establishment of an incubator that would be

12  associated with a university or college, the plan must provide

13  for the financial self-sufficiency of the incubator within 2

14  years after such establishment. The review and, if developed,

15  the plan shall be presented to the Governor, the President of

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

17  December 1, 2000.

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

19  technology business incubator is a facility that allows new

20  businesses engaged in information technology to increase their

21  probability of success through sharing needed equipment,

22  services, and facilities, including substantially all of the

23  following:

24         (a)  Reception and meeting areas.

25         (b)  Secretarial services.

26         (c)  Accounting and bookkeeping services.

27         (d)  Research libraries.

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

29  counseling.

30         (f)  Flexible lease arrangements for flexible space.

31         (g)  Computer and word-processing facilities.

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  1         (h)  Office furniture rentals.

  2         (i)  Management and entrepreneurial training programs.

  3         Section 8.  This act shall take effect upon becoming a

  4  law.

  5

  6            *****************************************

  7                          HOUSE SUMMARY

  8
      Requires the State Technology Office to facilitate
  9    development of a network access point in Florida.
      Requires Enterprise Florida, Inc, to create and implement
10    a marketing and image campaign to help attract, develop,
      and retain information technology businesses. Requires
11    development and maintenance of a website for information
      and technology industry marketing and workforce
12    recruitment. Requires a study group to explore the use of
      state employee pension funds to support venture capital
13    funds in Florida. Provides a sales tax exemption on sales
      of equipment used to deploy broadband technologies
14    associated with a network access point. Requires
      Enterprise Florida, Inc., to review existing business
15    incubators and develop a plan to establish information
      technology business incubators. See bill for details.
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