Senate Bill sb1750

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    Florida Senate - 2001                                  SB 1750

    By Senator Klein





    28-1174-01

  1                      A bill to be entitled

  2         An act relating to economic development;

  3         creating the "Florida Emerging and Strategic

  4         Technologies Act"; creating s. 112.3133, F.S.;

  5         providing legislative findings and intent

  6         relating to the transfer of technology and

  7         conflicts of interest for public university

  8         employees; directing the State Board of

  9         Education to develop guidelines for public

10         universities requiring disclosure of employees'

11         significant financial interests; prescribing

12         minimum requirements for such guidelines;

13         defining the term "significant financial

14         interests"; requiring public universities to

15         enforce and oversee implementation of such

16         guidelines; requiring a report; creating s.

17         121.155, F.S.; providing legislative findings

18         relating to the relationship between

19         availability of capital and the development of

20         high-technology businesses; expressing

21         legislative intent that Florida Retirement

22         System investments complement economic

23         development strategies; requiring staff of the

24         State Board of Administration to review certain

25         economic development information; expanding

26         annual report requirements; amending s. 159.26,

27         F.S.; declaring, for purposes of the Florida

28         Industrial Development Financing Act, that the

29         information technology industry is vital to the

30         economy of the state; providing that the

31         advancement of information technology is a

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  1         purpose underlying the act; amending s. 159.27,

  2         F.S.; redefining the term "project" to include

  3         information technology facilities; defining the

  4         term "information technology facility";

  5         amending s. 212.08, F.S.; revising the sales

  6         and use tax exemption for certain machinery and

  7         equipment to include machinery and equipment

  8         used by health technology facilities to produce

  9         health technology products, as defined, and

10         machinery and equipment used in research and

11         development or manufacturing in a health

12         technology facility; amending s. 220.02, F.S.;

13         expressing legislative intent on the order in

14         which a corporate income tax credit for certain

15         education costs should be applied; amending s.

16         220.13, F.S.; redefining the term "adjusted

17         federal income" to conform to the creation of a

18         corporate income tax credit for certain

19         information technology education costs;

20         creating s. 220.192, F.S.; authorizing a credit

21         against corporate income tax for certain

22         information technology education costs paid by

23         an employer on behalf of an employee; providing

24         eligibility and application requirements;

25         providing for administration and expiration of

26         the tax credit program; providing a definition;

27         creating s. 240.1055, F.S.; providing that the

28         mission of the state system of postsecondary

29         education includes supporting the economic

30         development goals of the state; expressing

31         legislative intent; amending s. 288.095, F.S.;

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  1         raising the amount of the total state share of

  2         tax refunds that may be scheduled annually for

  3         payment under the qualified target industry tax

  4         refund program; amending s. 288.108, F.S.;

  5         specifying that the information technology

  6         sector is a high-impact sector for the purposes

  7         of a grant program for investments by certain

  8         businesses; amending s. 288.911, F.S.;

  9         requiring Enterprise Florida, Inc., to develop

10         and implement a marketing campaign to promote

11         high-technology industries; providing the

12         purpose of such campaign; requiring

13         coordination with specified entities in the

14         development of such campaign; prescribing

15         components of such campaign; providing

16         legislative intent relating to the provision of

17         state assistance to a not-for-profit

18         corporation created to advocate on behalf of

19         the information technology industry; creating

20         s. 288.9522, F.S.; creating the Florida

21         Research Consortium; providing for the

22         organization, membership, purpose, powers, and

23         administration of the consortium; requiring an

24         annual report from the consortium and its

25         member universities; amending s. 445.045, F.S.;

26         reassigning responsibility for development and

27         maintenance of an information technology

28         promotion and workforce recruitment website to

29         Workforce Florida, Inc.; requiring consistency

30         and compatibility with other information

31         systems; authorizing Workforce Florida, Inc.,

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  1         to secure website services from outside

  2         entities; requiring coordination of the

  3         information technology website with other

  4         marketing, promotion, and advocacy efforts;

  5         directing Workforce Florida, Inc., to establish

  6         a pilot grant program for youth internships in

  7         high-technology fields, subject to legislative

  8         appropriation; specifying the amount of a grant

  9         under the program; providing for eligibility;

10         requiring an eligible business to submit an

11         internship work plan; specifying criteria for

12         evaluating an application for funding of an

13         internship; requiring Workforce Florida, Inc.,

14         to report the outcomes of the pilot program to

15         the Legislature; providing legislative findings

16         and intent relating to establishment of

17         joint-use advanced digital-media research and

18         production facilities; authorizing the Office

19         of Tourism, Trade, and Economic Development to

20         create a program supporting establishment of

21         such facilities; prescribing the purposes of

22         such facilities; specifying powers and duties

23         of the office relating to establishment of such

24         facilities; defining the term "digital media";

25         providing appropriations; providing an

26         effective date.

27

28         WHEREAS, Enterprise Florida, Inc., has sector

29  strategies devoted to Florida's health technology industry and

30  information technology industry, and

31

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  1         WHEREAS, the health technology industry and information

  2  technology industry represent valued and growing sectors of

  3  Florida's economy, and

  4         WHEREAS, these industries employ Floridians at high

  5  average wages, and

  6         WHEREAS, these industries are dominated by small

  7  employers and entrepreneurs who look to the state, its

  8  communities, economic development organizations, and community

  9  colleges and universities to provide an environment that will

10  nurture their development, and

11         WHEREAS, these industries have identified issues

12  relating to tax policy, workforce development, transfer of

13  technology from universities, and availability of capital as

14  affecting their viability and development, and

15         WHEREAS, the issues affecting the viability and

16  development of these industries are also critical to other

17  emerging and strategic high-technology industries that are

18  critically important to the economic development of the state

19  in the New Economy, and

20         WHEREAS, high-technology industries improve the quality

21  of life for all Floridians, and

22         WHEREAS, the Florida Legislature recognizes the

23  importance of high-technology industries to our state, NOW,

24  THEREFORE,

25

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

27

28         Section 1.  This act may be cited as the "Florida

29  Emerging and Strategic Technologies Act."

30         Section 2.  Section 112.3133, Florida Statutes, is

31  created to read:

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  1         112.3133  Standards of conduct applicable to technology

  2  transfer at public universities.--

  3         (1)  The Legislature finds that promoting objectivity

  4  in research at public universities is important to ensure that

  5  conflicts of interest do not compromise the responsibility of

  6  faculty, researchers, staff, and students to the state and the

  7  public educational institutions they represent. The

  8  Legislature also finds, however, that the transfer of

  9  technology from the university setting to the private sector

10  produces economic development benefits for the state and its

11  citizens and is a laudable public policy goal of the state.

12  Therefore, it is the intent of the Legislature that public

13  universities in the state operate under policies and

14  procedures that safeguard the public trust by providing for

15  disclosure of significant financial interests but that also

16  facilitate the transfer of technology by not unduly burdening

17  the building of relationships among university employees and

18  business entities.

19         (2)  Notwithstanding any provision of law to the

20  contrary, the State Board of Education shall develop by

21  January 1, 2002, guidelines governing conflicts of interest,

22  which guidelines permit an employee of a public university to

23  have or hold an employment, contractual, or other relationship

24  with a business entity that is doing business with the public

25  university, provided that such relationship relates to or

26  emanates from the transfer and commercialization of technology

27  developed at the university.

28         (3)  The guidelines must, at a minimum:

29         (a)  Specify that an employee shall submit to a

30  designated official at each university a statement of

31

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  1  significant financial interests of the employee. The statement

  2  shall cover the employee's significant financial interests:

  3         1.  That would reasonably appear to be affected by

  4  research or other activities in which the employee is engaged

  5  at the university; and

  6         2.  In entities whose financial interests would

  7  reasonably appear to be affected by the research or other

  8  activities in which the employee is engaged at the university.

  9         (b)  Require that such statements be updated annually

10  or as new reportable significant financial interests are

11  obtained.

12         (c)  Provide for adequate enforcement mechanisms and

13  provide for sanctions where appropriate.

14         (4)  For the purposes of this section, the term

15  "significant financial interests" shall have the same meaning

16  as provided in regulations of the U.S. Department of Health

17  and Human Services governing objectivity in research for which

18  funding from the Public Health Service is sought, as contained

19  in chapter 42, subpart F, C.F.R.

20         (5)  Each public university subject to regulation by

21  the State Board of Administration shall establish a process to

22  enforce and oversee the guidelines developed under this

23  section, including, at a minimum, a process for the receipt,

24  review, and recording of each employee's statements of

25  significant financial interests required to be submitted under

26  this section. Each university must designate an institutional

27  official to solicit and review such financial disclosure

28  statements from employees.

29         (6)  The State Board of Education shall consult with

30  the board of directors of the Florida Research Consortium in

31  developing the guidelines required by this section.

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  1         (7)  The State Board of Education shall report to the

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

  3  House of Representatives by February 1, 2002, on any

  4  recommended statutory changes necessary to facilitate or

  5  enhance the implementation or enforcement of the guidelines

  6  developed under this section, as well as on any statutory

  7  changes designed to improve the transfer of technology from

  8  public universities.

  9         Section 3.  Section 121.155, Florida Statutes, is

10  created to read:

11         121.155  Investments in support of economic development

12  strategies; legislative findings and intent.--

13         (1)  The Legislature finds that:

14         (a)  The recruitment, retention, and expansion of

15  high-technology businesses are a principal economic

16  development strategy of the state.

17         (b)  High-technology businesses have the potential to

18  contribute significantly to the prosperity of the state and

19  its residents through the creation of employment opportunities

20  and through the generation of revenues into the economy.

21         (c)  A significant barrier to the growth of

22  high-technology businesses in the state is caused by a lack of

23  access to sources of capital to support the activities of such

24  businesses.

25         (d)  The State Board of Administration, through the

26  investment of funds of the System Trust Fund, has the ability

27  to influence the availability of capital in the marketplace

28  for businesses located in the state.

29         (e)  The investment of funds of the System Trust Fund

30  in a manner consistent with the economic development goals of

31

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  1  the state enhances the prospects for fulfillment of such

  2  goals.

  3         (2)  It is the intent of the Legislature that the State

  4  Board of Administration, consistent with sound investment

  5  policy and with the investment provisions set forth in ss.

  6  215.44-215.53, maximize opportunities to invest and reinvest

  7  available funds of the System Trust Fund in a manner that is

  8  consistent with, and that supports fulfillment of, the

  9  economic development strategies of the state, including

10  investing and reinvesting funds in support of the capital

11  needs of emerging and strategic high-technology businesses

12  located in the state. It is further the intent of the

13  Legislature that the State Board of Administration, in

14  supporting fulfillment of the economic development strategies

15  of the state, establish partnerships, where feasible, with

16  venture capital firms designed to facilitate investment of

17  venture capital in high-technology businesses located in this

18  state.

19         (3)  Staff of the State Board of Administration shall

20  regularly solicit information from Enterprise Florida, Inc.,

21  on those high-technology business sectors that research

22  indicates have significant potential to contribute to the

23  economic development of the state and shall provide such

24  information to the Investment Advisory Council created under

25  s. 215.444.

26         (4)  As part of the annual report required under s.

27  215.44, the State Board of Administration shall describe those

28  investment activities during the year in furtherance of the

29  findings and intent of this section.

30         Section 4.  Section 159.26, Florida Statutes, is

31  amended to read:

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  1         159.26  Legislative findings and purposes.--The

  2  Legislature finds and declares that:

  3         (1)  The agriculture, tourism, urban development,

  4  historic preservation, information technology, education, and

  5  health care industries, among others, are vital to the economy

  6  of the state and to the welfare of the people and need to be

  7  enhanced and expanded to improve the competitive position of

  8  the state;

  9         (2)  There is a need to enhance other economic activity

10  in the state by attracting manufacturing development, business

11  enterprise management, and other activities conducive to

12  economic promotion in order to provide a stronger, more

13  balanced, and stable economy in the state, while providing

14  through pollution control and otherwise for the health and

15  safety of the people;

16         (3)  In order to improve the prosperity and welfare of

17  the state and its inhabitants; to improve education, living

18  conditions, and health care; to promote the preservation of

19  historic structures; to promote the rehabilitation of

20  enterprise zones; to promote improved transportation; to

21  promote effective and efficient pollution control throughout

22  the state; to promote the advancement of education and science

23  and research in and the economic development of the state; to

24  promote the advancement of information technology; and to

25  increase purchasing power and opportunities for gainful

26  employment, it is necessary and in the public interest to

27  facilitate the financing of the projects provided for in this

28  part and to facilitate and encourage the planning and

29  development of these projects without regard to the boundaries

30  between counties, municipalities, special districts, and other

31  local governmental bodies or agencies in order to more

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  1  effectively and efficiently serve the interests of the

  2  greatest number of people in the widest area practicable; and

  3         (4)  The purposes to be achieved by such projects and

  4  the financing of them in compliance with the criteria and

  5  requirements of this part are predominantly the public

  6  purposes stated in this section, and such purposes implement

  7  the governmental purposes under the State Constitution of

  8  providing for the health, safety, and welfare of the people,

  9  including implementing the purpose of s. 10(c), Art. VII of

10  the State Constitution.

11         Section 5.  Subsection (5) of section 159.27, Florida

12  Statutes, is amended, and subsection (25) is added to that

13  section to read:

14         159.27  Definitions.--The following words and terms,

15  unless the context clearly indicates a different meaning,

16  shall have the following meanings:

17         (5)  "Project" means any capital project comprising an

18  industrial or manufacturing plant, a research and development

19  park, an information technology facility, an agricultural

20  processing or storage facility, a warehousing or distribution

21  facility, a headquarters facility, a tourism facility, a

22  convention or trade show facility, an urban parking facility,

23  a trade center, a health care facility, an educational

24  facility, a correctional or detention facility, a motion

25  picture production facility, a preservation or rehabilitation

26  of a certified historic structure, an airport or port

27  facility, a commercial project in an enterprise zone, a

28  pollution-control facility, a hazardous or solid waste

29  facility, a social service center, or a mass commuting

30  facility, including one or more buildings and other

31  structures, whether or not on the same site or sites; any

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  1  rehabilitation, improvement, renovation, or enlargement of, or

  2  any addition to, any buildings or structures for use as a

  3  factory, a mill, a processing plant, an assembly plant, a

  4  fabricating plant, an industrial distribution center, a

  5  repair, overhaul, or service facility, a test facility, an

  6  agricultural processing or storage facility, a warehousing or

  7  distribution facility, a headquarters facility, a tourism

  8  facility, a convention or trade show facility, an urban

  9  parking facility, a trade center, a health care facility, an

10  educational facility, a correctional or detention facility, a

11  motion picture production facility, a preservation or

12  rehabilitation of a certified historic structure, an airport

13  or port facility, a commercial project in an enterprise zone,

14  a pollution-control facility, a hazardous or solid waste

15  facility, a social service center, or a mass commuting

16  facility, and other facilities, including research and

17  development facilities and information technology facilities,

18  for manufacturing, processing, assembling, repairing,

19  overhauling, servicing, testing, or handling of any products

20  or commodities embraced in any industrial or manufacturing

21  plant, in connection with the purposes of a research and

22  development park, or other facilities for or used in

23  connection with an agricultural processing or storage

24  facility, a warehousing or distribution facility, a

25  headquarters facility, a tourism facility, a convention or

26  trade show facility, an urban parking facility, a trade

27  center, a health care facility, an educational facility, a

28  correctional or detention facility, a motion picture

29  production facility, a preservation or rehabilitation of a

30  certified historic structure, an airport or port facility, or

31  a commercial project in an enterprise zone or for controlling

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  1  air or water pollution or for the disposal, processing,

  2  conversion, or reclamation of hazardous or solid waste, a

  3  social service center, or a mass commuting facility; and

  4  including also the sites thereof and other rights in land

  5  therefor whether improved or unimproved, machinery, equipment,

  6  site preparation and landscaping, and all appurtenances and

  7  facilities incidental thereto, such as warehouses, utilities,

  8  access roads, railroad sidings, truck docking and similar

  9  facilities, parking facilities, office or storage or training

10  facilities, public lodging and restaurant facilities, dockage,

11  wharfage, solar energy facilities, and other improvements

12  necessary or convenient for any manufacturing or industrial

13  plant, research and development park, information technology

14  facility, agricultural processing or storage facility,

15  warehousing or distribution facility, tourism facility,

16  convention or trade show facility, urban parking facility,

17  trade center, health care facility, educational facility, a

18  correctional or detention facility, motion picture production

19  facility, preservation or rehabilitation of a certified

20  historic structure, airport or port facility, commercial

21  project in an enterprise zone, pollution-control facility,

22  hazardous or solid waste facility, social service center, or a

23  mass commuting facility and any one or more combinations of

24  the foregoing.

25         (25)  "Information technology facility" means a

26  building or structure, including infrastructure such as roads,

27  power, water, network access points, and fiber optic cable

28  leading to the structure, which is used to house businesses

29  classified within the following standard industrial

30  classifications: SIC 3571 (electronic computers); SIC 3572

31  (computer storage devices); SIC 3575 (computer terminals); SIC

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  1  3577 (computer peripheral equipment); SIC 3661 (telephone and

  2  telegraph apparatus); SIC 3663 (radio and television

  3  broadcasting and communications equipment); SIC 3669

  4  (communications equipment); SIC 3671 (electron tubes); SIC

  5  3672 (printed circuit boards); SIC 3674 (semiconductors and

  6  related devices); SIC 3678 (electronic connectors); SIC 3679

  7  (electronic components); SIC 4812 (radiotelephone

  8  communications); SIC 4813 (telephone communications); SIC 4822

  9  (telegraph and other message communications); SIC 5045

10  (computers, peripherals, and software); SIC 5065 (electronic

11  parts and equipment); SIC 7371 (computer programming

12  services); SIC 7372 (prepackaged software); SIC 7373 (computer

13  integrated systems design); SIC 7374 (computer processing and

14  data preparation and processing services); SIC 7375

15  (information retrieval services); SIC 7377 (computer rental

16  and leasing); SIC 7378 (computer maintenance and repair); and

17  SIC 7379 (computer-related services).

18         Section 6.  Paragraph (j) of subsection (5) of section

19  212.08, Florida Statutes, is amended to read:

20         212.08  Sales, rental, use, consumption, distribution,

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

22  the rental, the use, the consumption, the distribution, and

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

24  following are hereby specifically exempt from the tax imposed

25  by this chapter.

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

27         (j)  Machinery and equipment used in semiconductor,

28  health, defense, or space technology production and research

29  and development.--

30         1.a.  Industrial machinery and equipment used in

31  semiconductor technology facilities or health technology

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  1  facilities certified under subparagraph 6. to manufacture,

  2  process, compound, or produce semiconductor technology

  3  products or health technology products for sale or for use by

  4  these facilities are exempt from the tax imposed by this

  5  chapter. For purposes of this paragraph, industrial machinery

  6  and equipment includes molds, dies, machine tooling, other

  7  appurtenances or accessories to machinery and equipment,

  8  testing equipment, test beds, computers, and software, whether

  9  purchased or self-fabricated, and, if self-fabricated,

10  includes materials and labor for design, fabrication, and

11  assembly.

12         b.  Industrial machinery and equipment used in defense

13  or space technology facilities certified under subparagraph 6.

14  to manufacture, process, compound, or produce defense

15  technology products or space technology products for sale or

16  for use by these facilities are exempt from 25 percent of the

17  tax imposed by this chapter.

18         2.a.  Machinery and equipment are exempt from the tax

19  imposed by this chapter if used predominately in semiconductor

20  wafer or health technology research and development activities

21  in a semiconductor technology or health technology research

22  and development facility certified under subparagraph 6. For

23  purposes of this paragraph, machinery and equipment includes

24  molds, dies, machine tooling, other appurtenances or

25  accessories to machinery and equipment, testing equipment,

26  test beds, computers, and software, whether purchased or

27  self-fabricated, and, if self-fabricated, includes materials

28  and labor for design, fabrication, and assembly.

29         b.  Machinery and equipment are exempt from 25 percent

30  of the tax imposed by this chapter if used predominately in

31  defense or space research and development activities in a

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  1  defense or space technology research and development facility

  2  certified under subparagraph 6.

  3         3.  Building materials purchased for use in

  4  manufacturing or expanding clean rooms in

  5  semiconductor-manufacturing facilities are exempt from the tax

  6  imposed by this chapter.

  7         4.  In addition to meeting the criteria mandated by

  8  subparagraph 1., subparagraph 2., or subparagraph 3., a

  9  business must be certified by the Office of Tourism, Trade,

10  and Economic Development as authorized in this paragraph in

11  order to qualify for exemption under this paragraph.

12         5.  For items purchased tax exempt pursuant to this

13  paragraph, possession of a written certification from the

14  purchaser, certifying the purchaser's entitlement to exemption

15  pursuant to this paragraph, relieves the seller of the

16  responsibility of collecting the tax on the sale of such

17  items, and the department shall look solely to the purchaser

18  for recovery of tax if it determines that the purchaser was

19  not entitled to the exemption.

20         6.a.  To be eligible to receive the exemption provided

21  by subparagraph 1., subparagraph 2., or subparagraph 3., a

22  qualifying business entity shall apply to Enterprise Florida,

23  Inc. The application shall be developed by the Office of

24  Tourism, Trade, and Economic Development in consultation with

25  Enterprise Florida, Inc.

26         b.  Enterprise Florida, Inc., shall review each

27  submitted application and information and determine whether or

28  not the application is complete within 5 working days. Once an

29  application is complete, Enterprise Florida, Inc., shall,

30  within 10 working days, evaluate the application and recommend

31

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  1  approval or disapproval of the application to the Office of

  2  Tourism, Trade, and Economic Development.

  3         c.  Upon receipt of the application and recommendation

  4  from Enterprise Florida, Inc., the Office of Tourism, Trade,

  5  and Economic Development shall certify within 5 working days

  6  those applicants who are found to meet the requirements of

  7  this section and notify the applicant, Enterprise Florida,

  8  Inc., and the department of the certification. If the Office

  9  of Tourism, Trade, and Economic Development finds that the

10  applicant does not meet the requirements of this section, it

11  shall notify the applicant and Enterprise Florida, Inc.,

12  within 10 working days that the application for certification

13  has been denied and the reasons for denial. The Office of

14  Tourism, Trade, and Economic Development has final approval

15  authority for certification under this section.

16         7.a.  A business may apply once each year for the

17  exemption.

18         b.  The application must indicate, for program

19  evaluation purposes only, the average number of full-time

20  equivalent employees at the facility over the preceding

21  calendar year, the average wage and benefits paid to those

22  employees over the preceding calendar year, the total

23  investment made in real and tangible personal property over

24  the preceding calendar year, and the total value of tax-exempt

25  purchases and taxes exempted during the previous year. The

26  department shall assist the Office of Tourism, Trade, and

27  Economic Development in evaluating and verifying information

28  provided in the application for exemption.

29         c.  The Office of Tourism, Trade, and Economic

30  Development may use the information reported on the

31  application for evaluation purposes only and shall prepare an

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  1  annual report on the exemption program and its cost and

  2  impact. The annual report for the preceding fiscal year shall

  3  be submitted to the Governor, the President of the Senate, and

  4  the Speaker of the House of Representatives by September 30 of

  5  each fiscal year. This report may be submitted in conjunction

  6  with the annual report required in s. 288.095(3)(c).

  7         8.  A business certified to receive this exemption may

  8  elect to designate one or more state universities or community

  9  colleges as recipients of up to 100 percent of the amount of

10  the exemption for which they may qualify. To receive these

11  funds, the institution must agree to match the funds so earned

12  with equivalent cash, programs, services, or other in-kind

13  support on a one-to-one basis in the pursuit of research and

14  development projects as requested by the certified business.

15  The rights to any patents, royalties, or real or intellectual

16  property must be vested in the business unless otherwise

17  agreed to by the business and the university or community

18  college.

19         9.  As used in this paragraph, the term:

20         a.  "Predominately" means at least 50 percent of the

21  time in qualifying research and development.

22         b.  "Research and development" means basic and applied

23  research in the science or engineering, as well as the design,

24  development, and testing of prototypes or processes of new or

25  improved products. Research and development does not include

26  market research, routine consumer product testing, sales

27  research, research in the social sciences or psychology,

28  nontechnological activities, or technical services.

29         c.  "Semiconductor technology products" means raw

30  semiconductor wafers or semiconductor thin films that are

31  transformed into semiconductor memory or logic wafers,

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  1  including wafers containing mixed memory and logic circuits;

  2  related assembly and test operations; active-matrix flat panel

  3  displays; semiconductor chips; semiconductor lasers;

  4  optoelectronic elements; and related semiconductor technology

  5  products as determined by the Office of Tourism, Trade, and

  6  Economic Development.

  7         d.  "Clean rooms" means manufacturing facilities

  8  enclosed in a manner that meets the clean manufacturing

  9  requirements necessary for high-technology

10  semiconductor-manufacturing environments.

11         e.  "Defense technology products" means products that

12  have a military application, including, but not limited to,

13  weapons, weapons systems, guidance systems, surveillance

14  systems, communications or information systems, munitions,

15  aircraft, vessels, or boats, or components thereof, which are

16  intended for military use and manufactured in performance of a

17  contract with the United States Department of Defense or the

18  military branch of a recognized foreign government or a

19  subcontract thereunder which relates to matters of national

20  defense.

21         f.  "Space technology products" means products that are

22  specifically designed or manufactured for application in space

23  activities, including, but not limited to, space launch

24  vehicles, missiles, satellites or research payloads, avionics,

25  and associated control systems and processing systems. The

26  term does not include products that are designed or

27  manufactured for general commercial aviation or other uses

28  even though those products may also serve an incidental use in

29  space applications.

30         g.  "Health technology products" means

31  biopharmaceutical or biological drugs; surgical, medical, and

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  1  dental instruments, supplies, and devices; ophthalmic goods;

  2  laboratory apparatus; laboratory analytical instruments;

  3  optical instruments and lenses; and related health technology

  4  products as determined by the Office of Tourism, Trade, and

  5  Economic Development, in consultation with Enterprise Florida,

  6  Inc.

  7         Section 7.  Subsection (8) of section 220.02, Florida

  8  Statutes, is amended to read:

  9         220.02  Legislative intent.--

10         (8)  It is the intent of the Legislature that credits

11  against either the corporate income tax or the franchise tax

12  be applied in the following order: those enumerated in s.

13  631.828, those enumerated in s. 220.191, those enumerated in

14  s. 220.181, those enumerated in s. 220.183, those enumerated

15  in s. 220.182, those enumerated in s. 220.1895, those

16  enumerated in s. 221.02, those enumerated in s. 220.184, those

17  enumerated in s. 220.186, those enumerated in s. 220.1845,

18  those enumerated in s. 220.19, and those enumerated in s.

19  220.185, and those enumerated in s. 220.192.

20         Section 8.  Paragraph (a) of subsection (1) of section

21  220.13, Florida Statutes, is amended to read:

22         220.13  "Adjusted federal income" defined.--

23         (1)  The term "adjusted federal income" means an amount

24  equal to the taxpayer's taxable income as defined in

25  subsection (2), or such taxable income of more than one

26  taxpayer as provided in s. 220.131, for the taxable year,

27  adjusted as follows:

28         (a)  Additions.--There shall be added to such taxable

29  income:

30         1.  The amount of any tax upon or measured by income,

31  excluding taxes based on gross receipts or revenues, paid or

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  1  accrued as a liability to the District of Columbia or any

  2  state of the United States which is deductible from gross

  3  income in the computation of taxable income for the taxable

  4  year.

  5         2.  The amount of interest which is excluded from

  6  taxable income under s. 103(a) of the Internal Revenue Code or

  7  any other federal law, less the associated expenses disallowed

  8  in the computation of taxable income under s. 265 of the

  9  Internal Revenue Code or any other law, excluding 60 percent

10  of any amounts included in alternative minimum taxable income,

11  as defined in s. 55(b)(2) of the Internal Revenue Code, if the

12  taxpayer pays tax under s. 220.11(3).

13         3.  In the case of a regulated investment company or

14  real estate investment trust, an amount equal to the excess of

15  the net long-term capital gain for the taxable year over the

16  amount of the capital gain dividends attributable to the

17  taxable year.

18         4.  That portion of the wages or salaries paid or

19  incurred for the taxable year which is equal to the amount of

20  the credit allowable for the taxable year under s. 220.181.

21  The provisions of this subparagraph shall expire and be void

22  on June 30, 2005.

23         5.  That portion of the ad valorem school taxes paid or

24  incurred for the taxable year which is equal to the amount of

25  the credit allowable for the taxable year under s. 220.182.

26  The provisions of this subparagraph shall expire and be void

27  on June 30, 2005.

28         6.  The amount of emergency excise tax paid or accrued

29  as a liability to this state under chapter 221 which tax is

30  deductible from gross income in the computation of taxable

31  income for the taxable year.

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  1         7.  That portion of assessments to fund a guaranty

  2  association incurred for the taxable year which is equal to

  3  the amount of the credit allowable for the taxable year.

  4         8.  In the case of a nonprofit corporation which holds

  5  a pari-mutuel permit and which is exempt from federal income

  6  tax as a farmers' cooperative, an amount equal to the excess

  7  of the gross income attributable to the pari-mutuel operations

  8  over the attributable expenses for the taxable year.

  9         9.  The amount taken as a credit for the taxable year

10  under s. 220.1895.

11         10.  Up to 9 nine percent of the eligible basis of any

12  designated project which is equal to the credit allowable for

13  the taxable year under s. 220.185.

14         11.  The amount taken as a credit for the taxable year

15  under s. 220.192.

16         Section 9.  Section 220.192, Florida Statutes, is

17  created to read:

18         220.192  Targeted workforce development tax credits.--

19         (1)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--

20         (a)  A credit of 100 percent of the matriculation and

21  other fees paid by a corporation on behalf of a current or

22  prospective employee enrolling in a college credit degree or

23  certificate program in information technology is allowed

24  against any tax due for a taxable year under this chapter. The

25  college credit degree or certificate program must be in a

26  regionally or nationally accredited institution of higher

27  education.

28         (b)  In no instance shall the matriculation and other

29  fees claimed for credit exceed 150 percent of the

30  matriculation costs for the state community colleges.

31

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  1         (c)  A corporation may not receive more than $50,000 in

  2  annual tax credits for all approved matriculation and other

  3  fee payments made in any one year.

  4         (d)  The total amount of tax credit which may be

  5  granted for all payments approved under this section is $5

  6  million in any fiscal year.

  7         (e)  An application for granting of the tax credit

  8  under this section must be approved by the Office of Student

  9  Financial Assistance.

10         (f)  If the credit granted under this section is not

11  fully used in any one year because of insufficient tax

12  liability on the part of the corporation, the unused amount

13  may be carried forward for a period not to exceed 5 years. The

14  carryover credit may be used in a subsequent year when the tax

15  imposed by this chapter for that year exceeds the credit for

16  that year under this section after applying the other credits

17  and unused credit carryovers in the order provided in s.

18  220.02(8).

19         (g)  A taxpayer that files a consolidated return as a

20  member of an affiliated group under s. 220.131(1) may be

21  allowed the credit on a consolidated return basis.

22         (2)  ELIGIBILITY REQUIREMENTS.--

23         (a)  Workforce Florida, Inc., in consultation with

24  Enterprise Florida, Inc., shall determine the information

25  technology programs in which enrollment is eligible for the

26  credit under this section.

27         (b)  Workforce Florida, Inc., shall update annually, as

28  a component of the Workforce Estimating Conference, the list

29  of information technology programs that provide a basis for

30  credit under this section.

31

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  1         (c)  The tax credits will be allowed only for those

  2  college courses satisfactorily completed by the current or

  3  prospective employee and shall apply only to courses taken

  4  after July 1, 2001.

  5         (3)  APPLICATION REQUIREMENTS.--Any corporation that

  6  wishes to participate in this program must submit to the

  7  Office of Student Financial Assistance an application for tax

  8  credit which sets forth the name of the applicant, the

  9  information technology programs in which the current or

10  prospective employees are to be enrolled, the names and social

11  security numbers of the current or prospective employees for

12  whom proposed matriculation and other fees will be paid, the

13  payment proposal, and other supporting information as is

14  prescribed by rule. This application must state the number of

15  current and prospective employees to be enrolled in each

16  program and the anticipated total matriculation and other

17  fees.

18         (4)  ADMINISTRATION.--

19         (a)  The Office of Student Financial Assistance may

20  adopt rules pursuant to ss. 120.536(1) and 120.54 to implement

21  the provisions of this section, including rules for the

22  approval or disapproval of applications by corporations and

23  rules to provide for cooperative arrangements between

24  for-profit and not-for-profit corporations.

25         (b)  The decision of the Office of Student Financial

26  Assistance shall be in writing, and, if approved, shall state

27  the maximum credit allowable to the corporation. A copy of the

28  decision shall be transmitted to the executive director of the

29  Department of Revenue, who shall apply such credit to the tax

30  liability of the corporation.

31

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  1         (c)  Receipts from the educational institution

  2  reflecting payment of matriculation and other fees in approved

  3  information technology programs must be submitted with all

  4  applications for the granting of the tax credit.

  5         (d)  The Department of Revenue may adopt rules pursuant

  6  to ss. 120.536(1) and 120.54 to implement the provisions of

  7  this section.

  8         (e)  Any corporation that claims this credit for

  9  matriculation and other fees paid on behalf of a current or

10  prospective employee who fails to complete, or fails to

11  satisfactorily complete, an information technology other

12  program is liable for repayment of the credit.

13         (5)  EXPIRATION.--The provisions of this section,

14  except paragraph (1)(f), expire June 30, 2008.

15         Section 10.  Section 240.1055, Florida Statutes, is

16  created to read:

17         240.1055  Economic development mission.--

18         (1)  The Legislature finds that the state system of

19  postsecondary education contributes to the economic well-being

20  of the state and its people through the education and training

21  of individuals for employment, through research and

22  development of technologies that have commercial applications,

23  and through the provision of assistance to businesses based in

24  this state. The Legislature further finds that the quality and

25  activities of the state system of postsecondary education

26  directly affect the success of state, regional, and local

27  efforts to develop, recruit, retain, and expand businesses,

28  particularly high-technology businesses, that create jobs and

29  generate revenue. Therefore, as a fundamental component of the

30  purpose and mission articulated in s. 240.105, the mission of

31  the state system of postsecondary education is to complement,

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  1  facilitate, and support the economic development strategies

  2  and goals of the state and its communities.

  3         (2)  In recognition and furtherance of the economic

  4  development mission of the state system of postsecondary

  5  education, it is the policy of the state to use the patent

  6  system and the technology-licensing operations of public

  7  universities to promote the use of inventions arising from

  8  funded research; to encourage to the maximum extent possible

  9  the participation of businesses based in this state in

10  opportunities to commercialize technology; to promote

11  collaboration between businesses in this state and

12  universities; and to secure for the residents of this state

13  enhanced returns on the intellectual property developed by

14  public universities through funded research.

15         Section 11.  Paragraph (a) of subsection (3) of section

16  288.095, Florida Statutes, is amended to read:

17         288.095  Economic Development Trust Fund.--

18         (3)(a)  The Office of Tourism, Trade, and Economic

19  Development may approve applications for certification

20  pursuant to ss. 288.1045(3) and 288.106. However, the total

21  state share of tax refund payments scheduled in all active

22  certifications for fiscal year 2000-2001 shall not exceed $24

23  million. The state share of tax refund payments scheduled in

24  all active certifications for fiscal year 2001-2002 and each

25  subsequent year shall not exceed $30 million. The total state

26  share of tax refund payments scheduled in all active

27  certifications for each subsequent fiscal year shall not

28  exceed $35 million.

29         Section 12.  Paragraph (i) of subsection (6) of section

30  288.108, Florida Statutes, is amended to read:

31         288.108  High-impact business.--

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  1         (6)  SELECTION AND DESIGNATION OF HIGH-IMPACT

  2  SECTORS.--

  3         (i)  For the purposes of this subsection, the

  4  semiconductor a high-impact sector consists of the silicon

  5  technology sector and the information technology sector are

  6  that Enterprise Florida, Inc., has found to be focused around

  7  the type of high-impact businesses for which the incentive

  8  created in this subsection is designed. These sectors required

  9  and will create the kinds of economic sector and economy wide

10  benefits that justify the use of state resources as economic

11  development incentives. Further, the use of state resources to

12  encourage investment in these sectors is necessary to

13  encourage these investments and require substantial

14  inducements to compete with the incentive packages offered by

15  other states and nations. For the purposes of this subsection

16  and s. 220.191, the term "information technology sector" shall

17  encompass, but not be limited to, the digital media sector as

18  defined by Enterprise Florida, Inc., and approved by the

19  Office of Tourism, Trade, and Economic Development.

20         Section 13.  Section 288.911, Florida Statutes, is

21  amended to read:

22         (Substantial rewording of section. See

23         s. 288.911, F.S., for present text.)

24         288.911  Marketing campaign to promote high-technology

25  industries.--

26         (1)  Enterprise Florida, Inc., shall develop and

27  implement a multifaceted marketing campaign to promote the

28  existence and growth of high-technology industries in the

29  state.

30         (2)  The purpose of the marketing campaign shall be to

31  inform businesses and individuals about the status of the

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  1  high-technology businesses, workforce, infrastructure, and

  2  services in the state and to promote the state globally as an

  3  ideal location for high-technology business activity, in order

  4  to encourage the retention and growth of existing businesses,

  5  workers, and students in high-technology fields and to

  6  encourage the recruitment of new businesses, workers, and

  7  students in high-technology fields.

  8         (3)  Enterprise Florida, Inc., shall develop the

  9  marketing campaign in coordination and consultation with:

10         (a)  The Office of Tourism, Trade, and Economic

11  Development;

12         (b)  The State Technology Office;

13         (c)  Workforce Florida, Inc.;

14         (d)  Local and regional economic development

15  organizations; and

16         (e)  Business organizations representing

17  high-technology industries throughout the state, including,

18  but not limited to, the not-for-profit corporation created to

19  advocate on behalf of the information technology industry as

20  an outgrowth of the Information Service Technology Development

21  Task Force created under chapter 99-354, Laws of Florida.

22  Enterprise Florida, Inc., shall accept direction from such

23  business organizations on the themes to be emphasized and

24  messages to be conveyed in the marketing campaign, in order to

25  ensure that the campaign effectively targets the needs and

26  interests of high-technology businesses, workers, and

27  students.

28         (4)  At a minimum, the marketing campaign must include

29  creation of a brand identification for promoting the state as

30  a location for high-technology industries and must include use

31  of Internet websites to develop such brand identification and

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  1  to provide information on the state's high-technology

  2  industries and the various programs and services available to

  3  assist such industries. Enterprise Florida, Inc., shall use

  4  the Internet-based system for information technology industry

  5  promotion and workforce recruitment required under s. 445.045

  6  as one of the forums for distribution of the marketing

  7  campaign required under this section.

  8         (5)  The marketing campaign must be coordinated with

  9  and consistent with the existing economic development efforts

10  of the state, and such campaign must be funded in part with

11  resources from the private sector.

12         Section 14.  The Legislature finds that the Information

13  Services Technology Development Task Force created under

14  chapter 99-354, Laws of Florida, performed an integral role in

15  analyzing and recommending policies to facilitate the

16  beneficial development and deployment of information

17  technology on a statewide basis. It is the intent of the

18  Legislature that, upon the dissolution of the task force

19  effective July 1, 2001, the state solicit continued policy

20  guidance and direction from a not-for-profit corporation

21  created to advocate on behalf of information technology

22  businesses and other high-technology businesses throughout the

23  state and which does business under the name "itflorida.com,

24  Inc." It further is the intent of the Legislature that the

25  State Technology Office; the Office of Tourism, Trade, and

26  Economic Development; and Enterprise Florida, Inc., facilitate

27  the formation and initial operation of such corporation to the

28  maximum extent feasible and that such organizations use the

29  corporation as a resource for information and insights about

30  the information technology industry and other high-technology

31  industries.

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  1         Section 15.  Section 288.9522, Florida Statutes, is

  2  created to read:

  3         288.9522  Florida Research Consortium.--

  4         (1)  CREATION.--There is created the Florida Research

  5  Consortium, which shall be organized and operated as a

  6  not-for-profit corporation in compliance with chapter 617. The

  7  consortium shall serve as the principal entity for uniting

  8  businesses and research universities in the state in order to

  9  enhance economic development through the development and

10  commercialization of science and technology and for targeting

11  the activities of such universities toward fulfillment of the

12  economic development goals of the state.

13         (2)  BOARD OF DIRECTORS.--The Florida Research

14  Consortium shall be governed by a board of directors comprised

15  of the following members:

16         (a)  Ten chief executive officers of businesses based

17  in this state who are appointed by the Governor. Initially, of

18  the 10 chief executive officers, the Governor shall appoint 5

19  members for terms of 4 years, 3 members for terms of 3 years,

20  and 2 members for terms of 2 years. Thereafter, the Governor

21  shall appoint all members for terms of 4 years.

22         (b)  Two chief executive officers of businesses based

23  in this state who are appointed by the President of the Senate

24  and who serve at the pleasure of the President.

25         (c)  Two chief executive officers of businesses based

26  in this state who are appointed by the Speaker of the House of

27  Representatives and who serve at the pleasure of the Speaker.

28         (d)  The presidents of the following research

29  universities:

30         1.  University of Florida;

31         2.  Florida State University;

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  1         3.  University of Central Florida;

  2         4.  University of South Florida;

  3         5.  Florida Atlantic University;

  4         6.  Florida International University;

  5         7.  Florida Agricultural and Mechanical University; and

  6         8.  University of Miami.

  7         (e)  The president of Enterprise Florida, Inc.

  8         (f)  The president of Workforce Florida, Inc.

  9         (g)  One representative each from two not-for-profit

10  research institutes located in the state which are not public

11  or private universities, who are appointed by the Governor for

12  terms of 4 years.

13         (h)  The Governor or the Governor's designee, who shall

14  serve as an ex-officio, nonvoting member.

15         (i)  The Commissioner of Education or the

16  commissioner's designee, who shall serve as an ex-officio,

17  non-voting member.

18

19  The voting members of the board of directors shall biennially

20  elect one of the voting members of the board to serve as the

21  chairman of the board. All members appointed under paragraphs

22  (a), (b), (c), and (g) are subject to Senate confirmation.

23         (3)  PURPOSE.--The purpose of the Florida Research

24  Consortium is to support economic development in the state by

25  linking the research capabilities of member universities with

26  the needs and activities of private businesses in the state

27  and by fostering the development and growth of scientific and

28  technology-based industry and commerce in this state.

29         (4)  POWERS AND DUTIES.--The powers and duties of the

30  board of directors of the Florida Research Consortium shall

31  include, but not be limited to:

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  1         (a)  Raising funds from nonstate sources to leverage

  2  any appropriations from the Legislature;

  3         (b)  Identifying three specific disciplines in science

  4  or technology which shall be the focus of the activities of

  5  the consortium, with such disciplines being narrowly defined

  6  and being viable areas of potential success for the state from

  7  an economic development and academic perspective;

  8         (c)  Developing and implementing strategies to recruit

  9  and retain preeminent researchers in science and

10  technology-based disciplines to universities in the state,

11  with such strategies including but not being limited to the

12  endowment of faculty or research chairs at universities in the

13  state in the disciplines identified under paragraph (b);

14         (d)  Developing and implementing strategies to recruit

15  and retain graduate and undergraduate students in science and

16  technology-based disciplines to universities in the state;

17         (e)  Assisting new and expanding science and

18  technology-based businesses with their research, technology

19  commercialization, capital, and workforce needs;

20         (f)  Developing and implementing strategies to increase

21  the state's share of research funds;

22         (g)  Identifying statutory, regulatory, policy, or

23  other barriers impeding the effective, efficient, and timely

24  transfer of technology and commercialization of research from

25  the university setting and proposing resolutions to such

26  barriers, including reforms to university policies on issues

27  such as conflicts of interest;

28         (h)  Developing and implementing strategies to create a

29  culture at member universities which promotes the conduct of

30  applied research and the transfer of technology as fundamental

31  activities of such universities;

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  1         (i)  Developing measures to assess the performance of

  2  the technology transfer offices of the member universities in

  3  facilitating the transfer of technology to businesses in the

  4  state;

  5         (j)  Facilitating discussions, meetings, and other

  6  forms of communication among university researchers, faculty,

  7  administrators, and students; high technology businesses in

  8  the state; and economic-development professionals;

  9         (k)  Establishing and maintaining an Internet-based

10  database for the marketing, publication, and exchange of

11  information with the public and private sectors on basic,

12  applied, and other research being conducted at universities in

13  the state;

14         (1)  Coordinating donations of equipment from

15  high-technology businesses to secondary schools;

16         (m)  Hiring an executive director and other staff for

17  the Florida Research Consortium; and

18         (n)  Meeting at least four times each calendar year.

19         (5)  ANNUAL REPORT.--

20         (a)  By January 1 of each year, the Florida Research

21  Consortium shall submit a report of its activities and

22  accomplishments for the year to the Governor, the President of

23  the Senate, and the Speaker of the House of Representatives.

24  The report shall also include specific recommendations

25  regarding actions the state could take to enhance the

26  commercialization of research and transfer of technologies

27  from the universities and to enhance the role of universities

28  in accomplishing the economic development goals of the state.

29         (b)  By December 1 of each year, the technology

30  transfer office of each university that is a member of the

31  Florida Research Consortium shall report to the board of

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  1  directors on the activities of the office during the year

  2  related to facilitating the transfer of technology to

  3  businesses and on its other activities related to building

  4  relationships between university researchers, faculty,

  5  students, and administrators and businesses in the state. The

  6  report must include information on the achievement by the

  7  office of the performance measures identified under paragraph

  8  (4)(i). The board of directors shall summarize the information

  9  provided by the technology transfer offices as part of the

10  annual report by the board under paragraph (a).

11         Section 16.  Section 445.045, Florida Statutes, is

12  amended to read:

13         445.045  Development of an Internet-based system for

14  information technology industry promotion and workforce

15  recruitment.--

16         (1)  Workforce Florida, Inc., The Department of Labor

17  and Employment Security shall be responsible for facilitate

18  efforts to ensure the development and maintenance of a website

19  that promotes and markets the information technology industry

20  in this state. The website shall be designed to inform the

21  public concerning the scope of the information technology

22  industry in the state and shall also be designed to address

23  the workforce needs of the industry. The website shall

24  include, through links or actual content, information

25  concerning information technology businesses in this state,

26  including links to such businesses; information concerning

27  employment available at these businesses; and the means by

28  which a jobseeker may post a resume on the website.

29         (2)  Workforce Florida, Inc., The Department of Labor

30  and Employment Security shall coordinate with the State

31  Technology Office and the Agency for Workforce Innovation

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

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

  3  information websites maintained by the state and state

  4  agencies and to ensure that information technology positions

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

  6  information technology website.

  7         (3)  Workforce Florida, Inc., shall ensure that the

  8  website developed and maintained under this section is

  9  consistent, compatible, and coordinated with the workforce

10  information systems required under s. 445.011, including, but

11  not limited to, the automated job-matching information system

12  for employers, job seekers, and other users.

13         (4)(a)  Workforce Florida, Inc., shall coordinate

14  development and maintenance of the website under this section

15  with the state's Chief Information Officer in the State

16  Technology Office to ensure compatibility with the state's

17  information system strategy and enterprise architecture.

18         (b)  Workforce Florida, Inc., may enter into an

19  agreement with the State Technology Office, the Agency for

20  Workforce Innovation, or any other public agency with the

21  requisite information technology expertise for the provision

22  of design, operating, or other technological services

23  necessary to develop and maintain the website.

24         (c)  Workforce Florida, Inc., may procure services

25  necessary to implement the provisions of this section,

26  provided, however, that it employs competitive processes,

27  including requests for proposals, competitive negotiation, and

28  other competitive processes to ensure that the procurement

29  results in the most cost-effective investment of state funds.

30         (5)  In furtherance of the requirements under this

31  section that the website promote and market the information

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  1  technology industry by communicating information on the scope

  2  of the industry in this state, Workforce Florida, Inc., shall

  3  coordinate its efforts with the high-technology industry

  4  marketing efforts of Enterprise Florida, Inc., under s.

  5  288.911. Through links or actual content, the website

  6  developed under this section shall serve as a forum for

  7  distributing the marketing campaign developed by Enterprise

  8  Florida, Inc., under s. 288.911. In addition, Workforce

  9  Florida, Inc., shall solicit input from the not-for-profit

10  corporation created to advocate on behalf of the information

11  technology industry as an outgrowth of the Information Service

12  Technology Development Task Force created under chapter

13  99-354, Laws of Florida.

14         Section 17.  Pilot grant program for youth

15  internships.--

16         (1)  Subject to legislative appropriation, Workforce

17  Florida, Inc., shall establish a pilot matching grant program

18  that is designed to encourage high-technology businesses to

19  employ, train, and mentor financially needy youth through

20  internships completed under the direct supervision of the

21  eligible business. Under this program, Workforce Florida,

22  Inc., may award grants to an eligible business for the benefit

23  of a named eligible youth. Part of the purpose of the program

24  shall be to help financially needy youth acquire and develop

25  information technology skills in order to help close the

26  "digital divide."

27         (2)  Grant funds awarded under this program shall be

28  used to supplement the stipend of the eligible youth and must

29  be matched by contributions from the eligible business. The

30  maximum grant amount that may be awarded on behalf of a single

31  eligible youth at one time is $2,000. Workforce Florida, Inc.,

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  1  may establish limitations on the total number of internship

  2  grants that may be awarded to a single eligible business or

  3  that may be awarded on behalf of a single eligible youth.

  4         (3)  An eligible business under this program includes

  5  any sole proprietorship, firm, partnership, or corporation in

  6  this state that is in the information technology sector,

  7  health technology sector, or other high-technology sector that

  8  the board of directors of Workforce Florida, Inc., in

  9  consultation with Enterprise Florida, Inc., determines is

10  strategically important to the economic development goals of

11  the state.

12         (4)  An eligible youth under this program includes a

13  student between the ages of 15 and 18 who is currently

14  enrolled at a high school in Florida and who has not been

15  previously employed within the preceding 12 months by the

16  eligible business, or a successor business, applying for

17  matching funds under this program. The youth must be a member

18  of a family that includes a parent with one or more minor

19  children or a caretaker with one or more minor children and

20  that is at risk of welfare dependency because the family's

21  income does not exceed 200 percent of the federal poverty

22  level.

23         (5)(a)  As part of an application for funding under

24  this program, an eligible business must submit an internship

25  work plan that describes:

26         1.  The work to be performed by the eligible youth;

27         2.  The anticipated number of hours per week the

28  eligible youth will work;

29         3.  The total hourly stipend to be paid to eligible

30  youth, with a description of the portion of the stipend

31

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  1  proposed to be paid by the eligible business and the portion

  2  of the stipend proposed to be paid by the state;

  3         4.  The anticipated term of the internship;

  4         5.  The training and supervision to be provided by the

  5  eligible business, particularly in terms of skill development

  6  of the youth related to computers and other information

  7  technologies;

  8         6.  The impact of the grant funds on the ability of the

  9  eligible business to employ the eligible youth through the

10  internship; and

11         7.  The prospects for unsubsidized employment of the

12  youth after the internship period concludes.

13         (b)  An application for funding must also identify the

14  eligible youth to be hired under the internship and include

15  information to demonstrate that the eligible youth satisfies

16  the requirements of subsection (4).

17         (6)  Workforce Florida, Inc., shall establish

18  guidelines governing the administration of this program which

19  facilitate access to the program by businesses and shall

20  establish criteria to be used in evaluating an application for

21  funding and the internship plan accompanying the application

22  as required under subsection (5). Such criteria must include,

23  but need not be limited to:

24         (a)  The nature of the work to be performed by the

25  eligible youth;

26         (b)  The potential experience and skills to be acquired

27  by the eligible youth, particularly related to computers and

28  other information technologies, as identified by Workforce

29  Florida, Inc., which may help address the digital divide;

30         (c)  Whether the eligible business is classified in one

31  of the business sectors identified by Enterprise Florida,

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  1  Inc., as being strategically important to the economic

  2  development efforts of the state or is classified in a

  3  business sector identified as being strategically important to

  4  the particular regional or local area in which the business is

  5  located;

  6         (d)  The supervision, training, and counseling to be

  7  provided to the eligible youth as part of the internship;

  8         (e)  The demonstrated need of the eligible business and

  9  the amount of matching funds to be provided by the eligible

10  business; and

11         (f)  The extent to which the internship has potential

12  to result in permanent employment with the eligible business

13  at the completion of the internship or anytime thereafter.

14         (7)  Before allocating funds for any grant application

15  under this program, Workforce Florida, Inc., shall execute a

16  simplified grant agreement with the eligible business. Such

17  agreement must include provisions for Workforce Florida, Inc.,

18  to have access to information about the performance of

19  eligible youth upon completion of the internship.

20         (8)  Workforce Florida, Inc., shall ensure that any

21  forms or reports associated with this program which a business

22  or individual is required to complete are as concise and

23  simple to complete as practicable.

24         (9)  Before the 2003 legislative session, Workforce

25  Florida, Inc., shall prepare a report describing the outcomes

26  of the pilot program authorized under this section. The report

27  must include a recommendation as to whether the Legislature

28  should continue to fund the program and on any changes

29  necessary to enhance the program. The report must be submitted

30  to the Governor, the President of the Senate, and the Speaker

31  of the House of Representatives by January 31, 2003.

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  1         Section 18.  Joint-Use Advanced Digital-Media Research

  2  and Production Facilities.--

  3         (1)  The Legislature finds that developments in digital

  4  media are having, and will continue to have, a profound effect

  5  on the state, its people, and its businesses in areas

  6  including, but not limited to, information technology,

  7  simulation technology, and film and entertainment production

  8  and distribution. The digital-media industry represents a

  9  strategic economic development opportunity for the state to

10  become a global leader in this emerging and dynamic field. The

11  ability of the state to succeed in developing the

12  digital-media sector, however, depends upon having a workforce

13  with skills necessary to meet the demands of the industry. The

14  Legislature further finds that the convergence of media and

15  the collaboration of businesses and multi-disciplinary

16  academic research programs will enable this state to compete

17  more successfully with other digital-media innovation centers

18  around the country and around the world. Therefore, it is the

19  intent of the Legislature to support the establishment and

20  maintenance of joint-use advanced digital-media research and

21  production facilities in the state to provide regional focal

22  points for collaboration between research and education

23  programs and digital-media industries.

24         (2)  Subject to legislative appropriation, the Office

25  of Tourism, Trade, and Economic Development is authorized to

26  create and administer a program to facilitate the

27  establishment and maintenance of joint-use advanced

28  digital-media research and production facilities at strategic

29  locations around the state. The office shall administer all

30  facets of this program in cooperation and consultation with

31  the Office of the Film Commissioner; Enterprise Florida, Inc.;

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  1  Workforce Florida, Inc.; the Digital Media Education

  2  Coordination Group of the State University System; and a

  3  not-for-profit corporation that represents information

  4  technology businesses throughout the state.

  5         (3)  The purposes of a joint-use advanced digital-media

  6  research and production facility shall include:

  7         (a)  Creating opportunities for industry, academia, and

  8  government to benefit from student and researcher involvement

  9  in applied research and development projects and other

10  projects related to digital media.

11         (b)  Promoting paths to future employment for students

12  participating in the activities of the facility.

13         (c)  Contributing to the development of a skilled

14  workforce to support the needs of the digital-media industry.

15         (d)  Facilitating the transfer of research results to

16  commercial and government applications.

17         (e)  Integrating the efforts and activities of the

18  diverse, high-technology industries in the state that are

19  critical to the economic future of the state.

20         (f)  Assisting producers, suppliers, and distributors

21  to make the transition from well-established passive media

22  infrastructure to a highly interactive and immersive media

23  infrastructure.

24         (g)  Performing other functions or activities designed

25  to contribute to the success of the state in becoming a leader

26  in the digital-media industry, as approved by the Office of

27  Tourism, Trade, and Economic Development.

28         (4)  In carrying out its responsibilities under this

29  section, the Office of Tourism, Trade, and Economic

30  Development:

31

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  1         (a)  Shall develop a strategic plan for how joint-use

  2  advanced digital-media research and production facilities will

  3  be governed and for how such facilities will be funded in the

  4  long term. The office may contract for the preparation of the

  5  strategic plan required by this paragraph.

  6         (b)  May contract for the establishment of joint-use

  7  advanced digital-media research and production facilities. In

  8  identifying, approving, and executing such contracts, the

  9  office shall attempt to maximize the use and integration of

10  existing facilities and programs in the state that are

11  suitable for application as joint-use advanced digital-media

12  facilities. Funds awarded under such contracts may be used to

13  lease or refurbish existing facilities to create

14  state-of-the-art digital-media design, production, and

15  research laboratories that shall be shared by public and

16  private educational institutions and industry partners.

17         (c)  Shall ensure that funds appropriated for the

18  program authorized in this section are expended in a manner

19  consistent with the priority needs for developing the

20  digital-media industry in this state, as identified by the

21  organizations listed in subsection (2).

22         (d)  Shall require any entity or organization receiving

23  state funding under this section to match such funding with

24  non-state sources.

25         (e)  Shall require any joint-use advanced digital-media

26  research and production facility receiving state funds to

27  submit for approval by the office a detailed plan for the

28  operation of such facility. Such operating plan must, at a

29  minimum, include provisions for the establishment of a tenant

30  association, with representation by each tenant using the

31

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  1  facility, and for the collection of annual dues from tenants

  2  to support the operation and maintenance of the facility.

  3         (f)  Shall require any joint-use advanced digital-media

  4  research and production facility receiving state funding to

  5  submit an annual report to the office by a date established by

  6  the office. Upon receipt of such annual reports, the office

  7  shall provide copies to the Governor, the President of the

  8  Senate, and the Speaker of the House of Representatives.

  9         (g)  Shall establish guidelines and criteria governing

10  the application for and receipt of funds under this section.

11         (h)  May, as part of the annual report on the business

12  climate of the state required under section 14.2015, Florida

13  Statutes, recommend to the Legislature policies designed to

14  enhance the effectiveness of the program for joint-use

15  advanced digital-media research and production facilities or

16  policies designed to otherwise promote the development of the

17  digital-media industry in the state.

18         (5)  For the purposes of this section, the term

19  "digital media" is defined as a discipline based on the

20  creative convergence of art, science, and technology for human

21  expression, communication, and social interaction. The Office

22  of Tourism, Trade, and Economic Development, in cooperation

23  and consultation with the organizations identified in

24  subsection (2), shall identify specific types of businesses or

25  types of business activity to be included within the term

26  "digital media."

27         Section 19.  There is appropriated from the General

28  Revenue Fund to the Office of Tourism, Trade, and Economic

29  Development the sum of $3 million in fiscal year 2001-2002 for

30  a program to facilitate the establishment and maintenance of

31  joint-use advanced digital-media research and production

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  1  facilities at strategic locations around the state as provided

  2  in this act.

  3         Section 20.  There is appropriated from the General

  4  Revenue Fund to the Office of Tourism, Trade, and Economic

  5  Development the sum of $1.5 million in fiscal year 2001-2002

  6  for use by Enterprise Florida, Inc., in creating and

  7  implementing the marketing campaign for high-technology

  8  industry promotion as required under section 288.911, Florida

  9  Statutes.

10         Section 21.  This act shall take effect July 1, 2001.

11

12            *****************************************

13                          SENATE SUMMARY

14    Revises and creates provisions on a broad range of topics
      with the goal of furthering economic development. Topics
15    include financial interests of university employees in
      the economic benefits from technology transfer;
16    availability of capital for high-technology businesses;
      state investment; information technology; tax incentives
17    and credits; the relationship of state postsecondary
      education to economic development; marketing of
18    high-technology industries; youth internships in
      high-technology fields; and joint-use advanced
19    digital-media research and production facilities. (See
      bill for details.)
20

21

22

23

24

25

26

27

28

29

30

31

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