Senate Bill sb1750c1

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    Florida Senate - 2001                           CS for SB 1750

    By the Committee on Commerce and Economic Opportunities; and
    Senator Klein




    310-1638-01

  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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    Florida Senate - 2001                           CS for SB 1750
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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; expanding a sales tax

13         exemption for clean-room building materials to

14         include health-technology facilities; amending

15         s. 220.02, F.S.; expressing legislative intent

16         on the order in which a corporate income tax

17         credit for certain education costs should be

18         applied; amending s. 220.13, F.S.; redefining

19         the term "adjusted federal income" to conform

20         to the creation of a corporate income tax

21         credit for certain information technology

22         education costs; creating s. 220.192, F.S.;

23         authorizing a credit against corporate income

24         tax for certain information technology

25         education costs paid by an employer on behalf

26         of an employee; providing eligibility and

27         application requirements; providing for

28         administration and expiration of the tax credit

29         program; providing a definition; creating s.

30         240.1055, F.S.; providing that the mission of

31         the state system of postsecondary education

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    Florida Senate - 2001                           CS for SB 1750
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  1         includes supporting the economic development

  2         goals of the state; expressing legislative

  3         intent; amending s. 240.710, F.S.; revising

  4         duties relating to the Digital Media Education

  5         Coordination Group; eliminating obsolete

  6         provisions; providing for the group to submit

  7         an annual report; amending s. 288.095, F.S.;

  8         raising the amount of the total state share of

  9         tax refunds that may be scheduled annually for

10         payment under the qualified target industry tax

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

12         specifying that the information technology

13         sector is a high-impact sector for the purposes

14         of a grant program for investments by certain

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

16         requiring Enterprise Florida, Inc., to develop

17         and implement a marketing campaign to promote

18         high-technology industries; providing the

19         purpose of such campaign; requiring

20         coordination with specified entities in the

21         development of such campaign; prescribing

22         components of such campaign; providing

23         legislative intent relating to the provision of

24         state assistance to a not-for-profit

25         corporation created to advocate on behalf of

26         the information technology industry; creating

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

28         Research Consortium; providing for the

29         organization, membership, purpose, powers, and

30         administration of the consortium; requiring an

31         annual report from the consortium and its

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    Florida Senate - 2001                           CS for SB 1750
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  1         member universities; amending s. 445.045, F.S.;

  2         reassigning responsibility for development and

  3         maintenance of an information technology

  4         promotion and workforce recruitment website to

  5         Workforce Florida, Inc.; requiring consistency

  6         and compatibility with other information

  7         systems; authorizing Workforce Florida, Inc.,

  8         to secure website services from outside

  9         entities; requiring coordination of the

10         information technology website with other

11         marketing, promotion, and advocacy efforts;

12         directing Workforce Florida, Inc., to establish

13         a pilot grant program for youth internships in

14         high-technology fields, subject to legislative

15         appropriation; specifying the amount of a grant

16         under the program; providing for eligibility;

17         requiring an eligible business to submit an

18         internship work plan; specifying criteria for

19         evaluating an application for funding of an

20         internship; requiring Workforce Florida, Inc.,

21         to report the outcomes of the pilot program to

22         the Legislature; providing legislative findings

23         and intent relating to establishment of

24         joint-use advanced digital-media research and

25         production facilities; authorizing the Office

26         of Tourism, Trade, and Economic Development to

27         create a program supporting establishment of

28         such facilities; prescribing the purposes of

29         such facilities; specifying powers and duties

30         of the office relating to establishment of such

31         facilities; defining the term "digital media";

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    Florida Senate - 2001                           CS for SB 1750
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  1         providing appropriations; providing an

  2         effective date.

  3

  4         WHEREAS, Enterprise Florida, Inc., has sector

  5  strategies devoted to Florida's health technology industry and

  6  information technology industry, and

  7         WHEREAS, the health technology industry and information

  8  technology industry represent valued and growing sectors of

  9  Florida's economy, and

10         WHEREAS, these industries employ Floridians at high

11  average wages, and

12         WHEREAS, these industries are dominated by small

13  employers and entrepreneurs who look to the state, its

14  communities, economic development organizations, and community

15  colleges and universities to provide an environment that will

16  nurture their development, and

17         WHEREAS, these industries have identified issues

18  relating to tax policy, workforce development, transfer of

19  technology from universities, and availability of capital as

20  affecting their viability and development, and

21         WHEREAS, the issues affecting the viability and

22  development of these industries are also critical to other

23  emerging and strategic high-technology industries that are

24  critically important to the economic development of the state

25  in the New Economy, and

26         WHEREAS, high-technology industries improve the quality

27  of life for all Floridians, and

28         WHEREAS, the Florida Legislature recognizes the

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

30  THEREFORE,

31

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    Florida Senate - 2001                           CS for SB 1750
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  1  Be It Enacted by the Legislature of the State of Florida:

  2

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

  4  Emerging and Strategic Technologies Act."

  5         Section 2.  Section 112.3133, Florida Statutes, is

  6  created to read:

  7         112.3133  Standards of conduct applicable to technology

  8  transfer at public universities.--

  9         (1)  The Legislature finds that promoting objectivity

10  in research at public universities is important to ensure that

11  conflicts of interest do not compromise the responsibility of

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

13  public educational institutions they represent. The

14  Legislature also finds, however, that the transfer of

15  technology from the university setting to the private sector

16  produces economic development benefits for the state and its

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

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

19  universities in the state operate under policies and

20  procedures that safeguard the public trust by providing for

21  disclosure of significant financial interests but that also

22  facilitate the transfer of technology by not unduly burdening

23  the building of relationships among university employees and

24  business entities.

25         (2)  Notwithstanding any provision of law to the

26  contrary, the State Board of Education shall develop by

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

28  which guidelines permit an employee of a public university to

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

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

31  university, provided that such relationship relates to or

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    Florida Senate - 2001                           CS for SB 1750
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  1  emanates from the transfer and commercialization of technology

  2  developed at the university.

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

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

  5  designated official at each university a statement of

  6  significant financial interests of the employee. The statement

  7  shall cover the employee's significant financial interests:

  8         1.  That would reasonably appear to be affected by

  9  research or other activities in which the employee is engaged

10  at the university; and

11         2.  In entities whose financial interests would

12  reasonably appear to be affected by the research or other

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

14         (b)  Require that such statements be updated annually

15  or as new reportable significant financial interests are

16  obtained.

17         (c)  Provide for adequate enforcement mechanisms and

18  provide for sanctions where appropriate.

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

20  "significant financial interests" shall have the same meaning

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

22  and Human Services governing objectivity in research for which

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

24  in 42 C.F.R. part 50, subpart F.

25         (5)  Each public university subject to regulation by

26  the State Board of Administration shall establish a process to

27  enforce and oversee the guidelines developed under this

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

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

30  significant financial interests required to be submitted under

31  this section. Each university must designate an institutional

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    Florida Senate - 2001                           CS for SB 1750
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  1  official to solicit and review such financial disclosure

  2  statements from employees.

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

  4  the board of directors of the Florida Research Consortium in

  5  developing the guidelines required by this section.

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

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

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

  9  recommended statutory changes necessary to facilitate or

10  enhance the implementation or enforcement of the guidelines

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

12  changes designed to improve the transfer of technology from

13  public universities.

14         Section 3.  Section 121.155, Florida Statutes, is

15  created to read:

16         121.155  Investments in support of economic development

17  strategies; legislative findings and intent.--

18         (1)  The Legislature finds that:

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

20  high-technology businesses are a principal economic

21  development strategy of the state.

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

23  contribute significantly to the prosperity of the state and

24  its residents through the creation of employment opportunities

25  and through the generation of revenues into the economy.

26         (c)  A significant barrier to the growth of

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

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

29  businesses.

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

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

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    Florida Senate - 2001                           CS for SB 1750
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  1  to influence the availability of capital in the marketplace

  2  for businesses located in the state.

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

  4  in a manner consistent with the economic development goals of

  5  the state enhances the prospects for fulfillment of such

  6  goals.

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

  8  Board of Administration, consistent with sound investment

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

10  215.44-215.53, maximize opportunities to invest and reinvest

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

12  consistent with, and that supports fulfillment of, the

13  economic development strategies of the state, including

14  investing and reinvesting funds in support of the capital

15  needs of emerging and strategic high-technology businesses

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

17  Legislature that the State Board of Administration, in

18  supporting fulfillment of the economic development strategies

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

20  venture capital firms designed to facilitate investment of

21  venture capital in high-technology businesses located in this

22  state.

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

24  regularly solicit information from Enterprise Florida, Inc.,

25  on those high-technology business sectors that research

26  indicates have significant potential to contribute to the

27  economic development of the state and shall provide such

28  information to the Investment Advisory Council created under

29  s. 215.444.

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

31  215.44, the State Board of Administration shall describe those

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    Florida Senate - 2001                           CS for SB 1750
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  1  investment activities during the year in furtherance of the

  2  findings and intent of this section.

  3         Section 4.  Section 159.26, Florida Statutes, is

  4  amended to read:

  5         159.26  Legislative findings and purposes.--The

  6  Legislature finds and declares that:

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

  8  historic preservation, information technology, education, and

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

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

11  enhanced and expanded to improve the competitive position of

12  the state;

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

14  in the state by attracting manufacturing development, business

15  enterprise management, and other activities conducive to

16  economic promotion in order to provide a stronger, more

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

18  through pollution control and otherwise for the health and

19  safety of the people;

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

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

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

23  historic structures; to promote the rehabilitation of

24  enterprise zones; to promote improved transportation; to

25  promote effective and efficient pollution control throughout

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

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

28  promote the advancement of information technology; and to

29  increase purchasing power and opportunities for gainful

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

31  facilitate the financing of the projects provided for in this

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  1  part and to facilitate and encourage the planning and

  2  development of these projects without regard to the boundaries

  3  between counties, municipalities, special districts, and other

  4  local governmental bodies or agencies in order to more

  5  effectively and efficiently serve the interests of the

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

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

  8  the financing of them in compliance with the criteria and

  9  requirements of this part are predominantly the public

10  purposes stated in this section, and such purposes implement

11  the governmental purposes under the State Constitution of

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

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

14  the State Constitution.

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

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

17  section to read:

18         159.27  Definitions.--The following words and terms,

19  unless the context clearly indicates a different meaning,

20  shall have the following meanings:

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

22  industrial or manufacturing plant, a research and development

23  park, an information technology facility, an agricultural

24  processing or storage facility, a warehousing or distribution

25  facility, a headquarters facility, a tourism facility, a

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

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

28  facility, a correctional or detention facility, a motion

29  picture production facility, a preservation or rehabilitation

30  of a certified historic structure, an airport or port

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

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  1  pollution-control facility, a hazardous or solid waste

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

  3  facility, including one or more buildings and other

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

  5  rehabilitation, improvement, renovation, or enlargement of, or

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

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

  8  fabricating plant, an industrial distribution center, a

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

10  agricultural processing or storage facility, a warehousing or

11  distribution facility, a headquarters facility, a tourism

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

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

14  educational facility, a correctional or detention facility, a

15  motion picture production facility, a preservation or

16  rehabilitation of a certified historic structure, an airport

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

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

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

20  facility, and other facilities, including research and

21  development facilities and information technology facilities,

22  for manufacturing, processing, assembling, repairing,

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

24  or commodities embraced in any industrial or manufacturing

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

26  development park, or other facilities for or used in

27  connection with an agricultural processing or storage

28  facility, a warehousing or distribution facility, a

29  headquarters facility, a tourism facility, a convention or

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

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

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  1  correctional or detention facility, a motion picture

  2  production facility, a preservation or rehabilitation of a

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

  4  a commercial project in an enterprise zone or for controlling

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

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

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

  8  including also the sites thereof and other rights in land

  9  therefor whether improved or unimproved, machinery, equipment,

10  site preparation and landscaping, and all appurtenances and

11  facilities incidental thereto, such as warehouses, utilities,

12  access roads, railroad sidings, truck docking and similar

13  facilities, parking facilities, office or storage or training

14  facilities, public lodging and restaurant facilities, dockage,

15  wharfage, solar energy facilities, and other improvements

16  necessary or convenient for any manufacturing or industrial

17  plant, research and development park, information technology

18  facility, agricultural processing or storage facility,

19  warehousing or distribution facility, tourism facility,

20  convention or trade show facility, urban parking facility,

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

22  correctional or detention facility, motion picture production

23  facility, preservation or rehabilitation of a certified

24  historic structure, airport or port facility, commercial

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

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

27  mass commuting facility and any one or more combinations of

28  the foregoing.

29         (25)  "Information technology facility" means a

30  building or structure, including infrastructure such as roads,

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

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

  2  classified within the following standard industrial

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

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

  5  3577 (computer peripheral equipment); SIC 3661 (telephone and

  6  telegraph apparatus); SIC 3663 (radio and television

  7  broadcasting and communications equipment); SIC 3669

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

  9  3672 (printed circuit boards); SIC 3674 (semiconductors and

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

11  (electronic components); SIC 4812 (radiotelephone

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

13  (telegraph and other message communications); SIC 5045

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

15  parts and equipment); SIC 7371 (computer programming

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

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

18  data preparation and processing services); SIC 7375

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

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

21  SIC 7379 (computer-related services).

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

23  212.08, Florida Statutes, is amended to read:

24         212.08  Sales, rental, use, consumption, distribution,

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

26  the rental, the use, the consumption, the distribution, and

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

28  following are hereby specifically exempt from the tax imposed

29  by this chapter.

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

31

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  1         (j)  Machinery and equipment used in semiconductor,

  2  health, defense, or space technology production and research

  3  and development.--

  4         1.a.  Industrial machinery and equipment used in

  5  semiconductor technology facilities or health technology

  6  facilities certified under subparagraph 6. to manufacture,

  7  process, compound, or produce semiconductor technology

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

  9  these facilities are exempt from the tax imposed by this

10  chapter. For purposes of this paragraph, industrial machinery

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

12  appurtenances or accessories to machinery and equipment,

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

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

15  includes materials and labor for design, fabrication, and

16  assembly.

17         b.  Industrial machinery and equipment used in defense

18  or space technology facilities certified under subparagraph 6.

19  to manufacture, process, compound, or produce defense

20  technology products or space technology products for sale or

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

22  tax imposed by this chapter.

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

24  imposed by this chapter if used predominately in semiconductor

25  wafer or health technology research and development activities

26  in a semiconductor technology or health technology research

27  and development facility certified under subparagraph 6. For

28  purposes of this paragraph, machinery and equipment includes

29  molds, dies, machine tooling, other appurtenances or

30  accessories to machinery and equipment, testing equipment,

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

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

  2  and labor for design, fabrication, and assembly.

  3         b.  Machinery and equipment are exempt from 25 percent

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

  5  defense or space research and development activities in a

  6  defense or space technology research and development facility

  7  certified under subparagraph 6.

  8         3.  Building materials purchased for use in

  9  manufacturing or expanding clean rooms in

10  semiconductor-manufacturing facilities or

11  health-technology-manufacturing facilities are exempt from the

12  tax imposed by this chapter.

13         4.  In addition to meeting the criteria mandated by

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

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

16  and Economic Development as authorized in this paragraph in

17  order to qualify for exemption under this paragraph.

18         5.  For items purchased tax exempt pursuant to this

19  paragraph, possession of a written certification from the

20  purchaser, certifying the purchaser's entitlement to exemption

21  pursuant to this paragraph, relieves the seller of the

22  responsibility of collecting the tax on the sale of such

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

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

25  not entitled to the exemption.

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

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

28  qualifying business entity shall apply to Enterprise Florida,

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

30  Tourism, Trade, and Economic Development in consultation with

31  Enterprise Florida, Inc.

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

  2  submitted application and information and determine whether or

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

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

  5  within 10 working days, evaluate the application and recommend

  6  approval or disapproval of the application to the Office of

  7  Tourism, Trade, and Economic Development.

  8         c.  Upon receipt of the application and recommendation

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

10  and Economic Development shall certify within 5 working days

11  those applicants who are found to meet the requirements of

12  this section and notify the applicant, Enterprise Florida,

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

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

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

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

17  within 10 working days that the application for certification

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

19  Tourism, Trade, and Economic Development has final approval

20  authority for certification under this section.

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

22  exemption.

23         b.  The application must indicate, for program

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

25  equivalent employees at the facility over the preceding

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

27  employees over the preceding calendar year, the total

28  investment made in real and tangible personal property over

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

30  purchases and taxes exempted during the previous year. The

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

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  1  Economic Development in evaluating and verifying information

  2  provided in the application for exemption.

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

  4  Development may use the information reported on the

  5  application for evaluation purposes only and shall prepare an

  6  annual report on the exemption program and its cost and

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

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

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

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

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

12         8.  A business certified to receive this exemption may

13  elect to designate one or more state universities or community

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

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

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

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

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

19  development projects as requested by the certified business.

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

21  property must be vested in the business unless otherwise

22  agreed to by the business and the university or community

23  college.

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

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

26  time in qualifying research and development.

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

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

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

30  improved products. Research and development does not include

31  market research, routine consumer product testing, sales

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  1  research, research in the social sciences or psychology,

  2  nontechnological activities, or technical services.

  3         c.  "Semiconductor technology products" means raw

  4  semiconductor wafers or semiconductor thin films that are

  5  transformed into semiconductor memory or logic wafers,

  6  including wafers containing mixed memory and logic circuits;

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

  8  displays; semiconductor chips; semiconductor lasers;

  9  optoelectronic elements; and related semiconductor technology

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

11  Economic Development.

12         d.  "Clean rooms" means manufacturing facilities

13  enclosed in a manner that meets the clean manufacturing

14  requirements necessary for high-technology

15  semiconductor-manufacturing environments.

16         e.  "Defense technology products" means products that

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

18  weapons, weapons systems, guidance systems, surveillance

19  systems, communications or information systems, munitions,

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

21  intended for military use and manufactured in performance of a

22  contract with the United States Department of Defense or the

23  military branch of a recognized foreign government or a

24  subcontract thereunder which relates to matters of national

25  defense.

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

27  specifically designed or manufactured for application in space

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

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

30  and associated control systems and processing systems. The

31  term does not include products that are designed or

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  1  manufactured for general commercial aviation or other uses

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

  3  space applications.

  4         g.  "Health technology products" means

  5  biopharmaceutical or biological drugs; surgical, medical, and

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

  7  laboratory apparatus; laboratory analytical instruments;

  8  optical instruments and lenses; and related health technology

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

10  Economic Development, in consultation with Enterprise Florida,

11  Inc.

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

13  Statutes, is amended to read:

14         220.02  Legislative intent.--

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

16  against either the corporate income tax or the franchise tax

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

18  631.828, those enumerated in s. 220.191, those enumerated in

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

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

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

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

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

24  220.185, and those enumerated in s. 220.192.

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

26  220.13, Florida Statutes, is amended to read:

27         220.13  "Adjusted federal income" defined.--

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

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

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

31

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

  2  adjusted as follows:

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

  4  income:

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

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

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

  8  state of the United States which is deductible from gross

  9  income in the computation of taxable income for the taxable

10  year.

11         2.  The amount of interest which is excluded from

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

13  any other federal law, less the associated expenses disallowed

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

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

16  of any amounts included in alternative minimum taxable income,

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

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

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

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

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

22  amount of the capital gain dividends attributable to the

23  taxable year.

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

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

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

27  The provisions of this subparagraph shall expire and be void

28  on June 30, 2005.

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

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

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

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  1  The provisions of this subparagraph shall expire and be void

  2  on June 30, 2005.

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

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

  5  deductible from gross income in the computation of taxable

  6  income for the taxable year.

  7         7.  That portion of assessments to fund a guaranty

  8  association incurred for the taxable year which is equal to

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

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

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

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

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

14  over the attributable expenses for the taxable year.

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

16  under s. 220.1895.

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

18  designated project which is equal to the credit allowable for

19  the taxable year under s. 220.185.

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

21  under s. 220.192.

22         Section 9.  Section 220.192, Florida Statutes, is

23  created to read:

24         220.192  Targeted workforce development tax credits.--

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

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

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

28  prospective employee enrolling in a college credit degree or

29  certificate program in information technology is allowed

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

31  college credit degree or certificate program must be in a

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  1  regionally or nationally accredited institution of higher

  2  education.

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

  4  fees claimed for credit exceed 150 percent of the

  5  matriculation costs for the state community colleges.

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

  7  annual tax credits for all approved matriculation and other

  8  fee payments made in any one year.

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

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

11  million in any fiscal year.

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

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

14  Financial Assistance.

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

16  fully used in any one year because of insufficient tax

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

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

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

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

21  that year under this section after applying the other credits

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

23  220.02(8).

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

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

26  allowed the credit on a consolidated return basis.

27         (2)  ELIGIBILITY REQUIREMENTS.--

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

29  Enterprise Florida, Inc., shall determine the information

30  technology programs in which enrollment is eligible for the

31  credit under this section.

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

  2  a component of the Workforce Estimating Conference, the list

  3  of information technology programs that provide a basis for

  4  credit under this section.

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

  6  college courses satisfactorily completed by the current or

  7  prospective employee and shall apply only to courses taken

  8  after July 1, 2001.

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

10  wishes to participate in this program must submit to the

11  Office of Student Financial Assistance an application for tax

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

13  information technology programs in which the current or

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

15  security numbers of the current or prospective employees for

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

17  payment proposal, and other supporting information as is

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

19  current and prospective employees to be enrolled in each

20  program and the anticipated total matriculation and other

21  fees.

22         (4)  ADMINISTRATION.--

23         (a)  The Office of Student Financial Assistance may

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

25  the provisions of this section, including rules for the

26  approval or disapproval of applications by corporations and

27  rules to provide for cooperative arrangements between

28  for-profit and not-for-profit corporations.

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

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

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

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  1  decision shall be transmitted to the executive director of the

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

  3  liability of the corporation.

  4         (c)  Receipts from the educational institution

  5  reflecting payment of matriculation and other fees in approved

  6  information technology programs must be submitted with all

  7  applications for the granting of the tax credit.

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

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

10  this section.

11         (e)  Any corporation that claims this credit for

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

13  prospective employee who fails to complete, or fails to

14  satisfactorily complete, an information technology other

15  program is liable for repayment of the credit.

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

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

18         Section 10.  Section 240.1055, Florida Statutes, is

19  created to read:

20         240.1055  Economic development mission.--

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

22  postsecondary education contributes to the economic well-being

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

24  of individuals for employment, through research and

25  development of technologies that have commercial applications,

26  and through the provision of assistance to businesses based in

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

28  activities of the state system of postsecondary education

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

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

31  particularly high-technology businesses, that create jobs and

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

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

  3  the state system of postsecondary education is to complement,

  4  facilitate, and support the economic development strategies

  5  and goals of the state and its communities.

  6         (2)  In recognition and furtherance of the economic

  7  development mission of the state system of postsecondary

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

  9  system and the technology-licensing operations of public

10  universities to promote the use of inventions arising from

11  funded research; to encourage to the maximum extent possible

12  the participation of businesses based in this state in

13  opportunities to commercialize technology; to promote

14  collaboration between businesses in this state and

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

16  enhanced returns on the intellectual property developed by

17  public universities through funded research.

18         Section 11.  Section 240.710, Florida Statutes, is

19  amended to read:

20         240.710  Digital Media Education Coordination Group.--

21         (1)  The Division of Universities of the Department of

22  Education Board of Regents shall create a Digital Media

23  Education Coordination Group composed of representatives of

24  the universities within the State University System that shall

25  work in conjunction with the Division Department of Education,

26  the State Board of Community Colleges, the Office of Tourism,

27  Trade, and Economic Development, and the Articulation

28  Coordinating Committee on the development of a plan to enhance

29  Florida's ability to meet the current and future workforce

30  needs of the digital media industry. The following purposes of

31  the group shall be included in its plan development process:

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  1         (a)  Coordination of the use of existing academic

  2  programs and research and faculty resources to promote the

  3  development of a digital media industry in this state.

  4         (b)  Address strategies to improve opportunities for

  5  interdisciplinary study and research within the emerging field

  6  of digital media through the development of tracts in existing

  7  degree programs, new interdisciplinary degree programs, and

  8  interdisciplinary research centers.

  9         (c)  Address the sharing of resources among

10  universities in such a way as to allow a student to take

11  courses from multiple departments or multiple educational

12  institutions in pursuit of competency, certification, and

13  degrees in digital information and media technology.

14         (2)  Where practical, private accredited institutions

15  of higher learning in this state should be encouraged to

16  participate.

17         (3)  In addition to the elements of the plan governed

18  by the purposes described in subsection (1), the plan shall

19  include, to the maximum extent practical, the coordination of

20  educational resources to be provided by distance learning and

21  shall facilitate to the maximum extent possible articulation

22  and transfer of credits between community colleges and the

23  state universities. The plan shall address student enrollment

24  in affected programs with emphasis on enrollment beginning as

25  early as fall term, 2001.

26         (3)(4)  The Digital Media Education Coordination Group

27  shall submit an annual report of its activities with any

28  recommendations for policy implementation or funding to the

29  State Board of Education its plan to the President of the

30  Senate and the Speaker of the House of Representatives no

31  later than February 1 of each year January 1, 2001.

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  1         Section 12.  Paragraph (a) of subsection (3) of section

  2  288.095, Florida Statutes, is amended to read:

  3         288.095  Economic Development Trust Fund.--

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

  5  Development may approve applications for certification

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

  7  state share of tax refund payments scheduled in all active

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

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

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

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

12  share of tax refund payments scheduled in all active

13  certifications for each subsequent fiscal year shall not

14  exceed $35 million.

15         Section 13.  Paragraph (i) of subsection (6) of section

16  288.108, Florida Statutes, is amended to read:

17         288.108  High-impact business.--

18         (6)  SELECTION AND DESIGNATION OF HIGH-IMPACT

19  SECTORS.--

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

21  semiconductor a high-impact sector consists of the silicon

22  technology sector and the information technology sector are

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

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

25  created in this subsection is designed. These sectors required

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

27  benefits that justify the use of state resources as economic

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

29  encourage investment in these sectors is necessary to

30  encourage these investments and require substantial

31  inducements to compete with the incentive packages offered by

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

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

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

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

  5  Office of Tourism, Trade, and Economic Development.

  6         Section 14.  Section 288.911, Florida Statutes, is

  7  amended to read:

  8         (Substantial rewording of section. See

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

10         288.911  Marketing campaign to promote high-technology

11  industries.--

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

13  implement a multifaceted marketing campaign to promote the

14  existence and growth of high-technology industries in the

15  state.

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

17  inform businesses and individuals about the status of the

18  high-technology businesses, workforce, infrastructure, and

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

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

21  to encourage the retention and growth of existing businesses,

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

23  encourage the recruitment of new businesses, workers, and

24  students in high-technology fields.

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

26  marketing campaign in coordination and consultation with:

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

28  Development;

29         (b)  The State Technology Office;

30         (c)  Workforce Florida, Inc.;

31

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  1         (d)  Local and regional economic development

  2  organizations; and

  3         (e)  Business organizations representing

  4  high-technology industries throughout the state, including,

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

  6  advocate on behalf of the information technology industry as

  7  an outgrowth of the Information Service Technology Development

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

  9  Enterprise Florida, Inc., shall solicit input from such

10  business organizations on the themes to be emphasized and

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

12  ensure that the campaign effectively targets the needs and

13  interests of high-technology businesses, workers, and

14  students.

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

16  creation of a brand identification for promoting the state as

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

18  of Internet websites to develop such brand identification and

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

20  industries and the various programs and services available to

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

22  the Internet-based system for information technology industry

23  promotion and workforce recruitment required under s. 445.045

24  as one of the forums for distribution of the marketing

25  campaign required under this section.

26         (5)  The marketing campaign must be coordinated with

27  and consistent with the existing economic development efforts

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

29  resources from the private sector.

30         Section 15.  The Legislature finds that the Information

31  Services Technology Development Task Force created under

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

  2  analyzing and recommending policies to facilitate the

  3  beneficial development and deployment of information

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

  5  Legislature that, upon the dissolution of the task force

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

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

  8  created to advocate on behalf of information technology

  9  businesses and other high-technology businesses throughout the

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

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

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

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

14  the formation and initial operation of such corporation to the

15  maximum extent feasible and that such organizations use the

16  corporation as a resource for information and insights about

17  the information technology industry and other high-technology

18  industries.

19         Section 16.  Section 288.9522, Florida Statutes, is

20  created to read:

21         288.9522  Florida Research Consortium.--

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

23  Consortium, which shall be organized and operated as a

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

25  consortium shall serve as the principal entity for uniting

26  businesses and research universities in the state in order to

27  enhance economic development through the development and

28  commercialization of science and technology and for targeting

29  the activities of such universities toward fulfillment of the

30  economic development goals of the state.

31

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

  2  Consortium shall be governed by a board of directors comprised

  3  of the following members:

  4         (a)  Ten chief executive officers of businesses based

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

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

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

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

  9  shall appoint all members for terms of 4 years.

10         (b)  Two chief executive officers of businesses based

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

12  and who serve at the pleasure of the President.

13         (c)  Two chief executive officers of businesses based

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

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

16         (d)  The presidents of the following research

17  universities:

18         1.  University of Florida;

19         2.  Florida State University;

20         3.  University of Central Florida;

21         4.  University of South Florida;

22         5.  Florida Atlantic University;

23         6.  Florida International University;

24         7.  Florida Agricultural and Mechanical University;

25         8.  University of North Florida;

26         9.  Florida Gulf Coast University;

27         10.  University of West Florida; and

28         11.  University of Miami.

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

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

31

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

  2  research institutes located in the state which are not public

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

  4  terms of 4 years.

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

  6  serve as an ex-officio, nonvoting member.

  7         (i)  The Commissioner of Education or the

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

  9  non-voting member.

10

11  The voting members of the board of directors shall biennially

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

13  chairman of the board. All members appointed under paragraphs

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

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

16  Consortium is to support economic development in the state by

17  linking the research capabilities of member universities with

18  the needs and activities of private businesses in the state

19  and by fostering the development and growth of scientific and

20  technology-based industry and commerce in this state.

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

22  board of directors of the Florida Research Consortium shall

23  include, but not be limited to:

24         (a)  Raising funds from nonstate sources to leverage

25  any appropriations from the Legislature;

26         (b)  Identifying three specific disciplines in science

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

28  the consortium, with such disciplines being narrowly defined

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

30  an economic development and academic perspective;

31

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  1         (c)  Developing and implementing strategies to recruit

  2  and retain preeminent researchers in science and

  3  technology-based disciplines to universities in the state,

  4  with such strategies including but not being limited to the

  5  endowment of faculty or research chairs at universities in the

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

  7         (d)  Developing and implementing strategies to recruit

  8  and retain graduate and undergraduate students in science and

  9  technology-based disciplines to universities in the state;

10         (e)  Assisting new and expanding science and

11  technology-based businesses with their research, technology

12  commercialization, capital, and workforce needs;

13         (f)  Developing and implementing strategies to increase

14  the state's share of research funds;

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

16  other barriers impeding the effective, efficient, and timely

17  transfer of technology and commercialization of research from

18  the university setting and proposing resolutions to such

19  barriers, including reforms to university policies on issues

20  such as conflicts of interest;

21         (h)  Developing and implementing strategies to create a

22  culture at member universities which promotes the conduct of

23  applied research and the transfer of technology as fundamental

24  activities of such universities;

25         (i)  Developing measures to assess the performance of

26  the technology transfer offices of the member universities in

27  facilitating the transfer of technology to businesses in the

28  state;

29         (j)  Facilitating discussions, meetings, and other

30  forms of communication among university researchers, faculty,

31

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  1  administrators, and students; high technology businesses in

  2  the state; and economic-development professionals;

  3         (k)  Establishing and maintaining an Internet-based

  4  database for the marketing, publication, and exchange of

  5  information with the public and private sectors on basic,

  6  applied, and other research being conducted at universities in

  7  the state;

  8         (1)  Coordinating donations of equipment from

  9  high-technology businesses to secondary schools;

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

11  the Florida Research Consortium; and

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

13         (5)  ANNUAL REPORT.--

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

15  Consortium shall submit a report of its activities and

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

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

18  The report shall also include specific recommendations

19  regarding actions the state could take to enhance the

20  commercialization of research and transfer of technologies

21  from the universities and to enhance the role of universities

22  in accomplishing the economic development goals of the state.

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

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

25  Florida Research Consortium shall report to the board of

26  directors on the activities of the office during the year

27  related to facilitating the transfer of technology to

28  businesses and on its other activities related to building

29  relationships between university researchers, faculty,

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

31  report must include information on the achievement by the

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  1  office of the performance measures identified under paragraph

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

  3  provided by the technology transfer offices as part of the

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

  5         Section 17.  Section 445.045, Florida Statutes, is

  6  amended to read:

  7         445.045  Development of an Internet-based system for

  8  information technology industry promotion and workforce

  9  recruitment.--

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

11  and Employment Security shall be responsible for facilitate

12  efforts to ensure the development and maintenance of a website

13  that promotes and markets the information technology industry

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

15  public concerning the scope of the information technology

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

17  the workforce needs of the industry. The website shall

18  include, through links or actual content, information

19  concerning information technology businesses in this state,

20  including links to such businesses; information concerning

21  employment available at these businesses; and the means by

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

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

24  and Employment Security shall coordinate with the State

25  Technology Office and the Agency for Workforce Innovation

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

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

28  information websites maintained by the state and state

29  agencies and to ensure that information technology positions

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

31  information technology website.

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

  2  website developed and maintained under this section is

  3  consistent, compatible, and coordinated with the workforce

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

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

  6  for employers, job seekers, and other users.

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

  8  development and maintenance of the website under this section

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

10  Technology Office to ensure compatibility with the state's

11  information system strategy and enterprise architecture.

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

13  agreement with the State Technology Office, the Agency for

14  Workforce Innovation, or any other public agency with the

15  requisite information technology expertise for the provision

16  of design, operating, or other technological services

17  necessary to develop and maintain the website.

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

19  necessary to implement the provisions of this section,

20  provided, however, that it employs competitive processes,

21  including requests for proposals, competitive negotiation, and

22  other competitive processes to ensure that the procurement

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

24         (5)  In furtherance of the requirements under this

25  section that the website promote and market the information

26  technology industry by communicating information on the scope

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

28  coordinate its efforts with the high-technology industry

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

30  288.911. Through links or actual content, the website

31  developed under this section shall serve as a forum for

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  1  distributing the marketing campaign developed by Enterprise

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

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

  4  corporation created to advocate on behalf of the information

  5  technology industry as an outgrowth of the Information Service

  6  Technology Development Task Force created under chapter

  7  99-354, Laws of Florida.

  8         Section 18.  Pilot grant program for youth

  9  internships.--

10         (1)  Subject to legislative appropriation, Workforce

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

12  that is designed to encourage high-technology businesses to

13  employ, train, and mentor financially needy youth through

14  internships completed under the direct supervision of the

15  eligible business. Under this program, Workforce Florida,

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

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

18  shall be to help financially needy youth acquire and develop

19  information technology skills in order to help close the

20  "digital divide."

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

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

23  be matched by contributions from the eligible business. The

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

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

26  may establish limitations on the total number of internship

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

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

29         (3)  An eligible business under this program includes

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

31  this state that is in the information technology sector,

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

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

  3  consultation with Enterprise Florida, Inc., determines is

  4  strategically important to the economic development goals of

  5  the state.

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

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

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

  9  previously employed within the preceding 12 months by the

10  eligible business, or a successor business, applying for

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

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

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

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

15  income does not exceed 200 percent of the federal poverty

16  level.

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

18  this program, an eligible business must submit an internship

19  work plan that describes:

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

21         2.  The anticipated number of hours per week the

22  eligible youth will work;

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

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

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

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

27         4.  The anticipated term of the internship;

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

29  eligible business, particularly in terms of skill development

30  of the youth related to computers and other information

31  technologies;

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

  2  eligible business to employ the eligible youth through the

  3  internship; and

  4         7.  The prospects for unsubsidized employment of the

  5  youth after the internship period concludes.

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

  7  eligible youth to be hired under the internship and include

  8  information to demonstrate that the eligible youth satisfies

  9  the requirements of subsection (4).

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

11  guidelines governing the administration of this program which

12  facilitate access to the program by businesses and shall

13  establish criteria to be used in evaluating an application for

14  funding and the internship plan accompanying the application

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

16  but need not be limited to:

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

18  eligible youth;

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

20  by the eligible youth, particularly related to computers and

21  other information technologies, as identified by Workforce

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

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

24  of the business sectors identified by Enterprise Florida,

25  Inc., as being strategically important to the economic

26  development efforts of the state or is classified in a

27  business sector identified as being strategically important to

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

29  located;

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

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

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

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

  3  business; and

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

  5  to result in permanent employment with the eligible business

  6  at the completion of the internship or anytime thereafter.

  7         (7)  Before allocating funds for any grant application

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

  9  simplified grant agreement with the eligible business. Such

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

11  to have access to information about the performance of

12  eligible youth upon completion of the internship.

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

14  forms or reports associated with this program which a business

15  or individual is required to complete are as concise and

16  simple to complete as practicable.

17         (9)  Before the 2003 legislative session, Workforce

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

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

20  must include a recommendation as to whether the Legislature

21  should continue to fund the program and on any changes

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

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

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

25         Section 19.  Joint-Use Advanced Digital-Media Research

26  and Production Facilities.--

27         (1)  The Legislature finds that developments in digital

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

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

30  including, but not limited to, information technology,

31  simulation technology, and film and entertainment production

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  1  and distribution. The digital-media industry represents a

  2  strategic economic development opportunity for the state to

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

  4  ability of the state to succeed in developing the

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

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

  7  Legislature further finds that the convergence of media and

  8  the collaboration of businesses and multi-disciplinary

  9  academic research programs will enable this state to compete

10  more successfully with other digital-media innovation centers

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

12  intent of the Legislature to support the establishment and

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

14  production facilities in the state to provide regional focal

15  points for collaboration between research and education

16  programs and digital-media industries.

17         (2)  Subject to legislative appropriation, the Office

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

19  create and administer a program to facilitate the

20  establishment and maintenance of joint-use advanced

21  digital-media research and production facilities at strategic

22  locations around the state. The office shall administer all

23  facets of this program in cooperation and consultation with

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

25  Workforce Florida, Inc.; the Digital Media Education

26  Coordination Group of the State University System; and a

27  not-for-profit corporation that represents information

28  technology businesses throughout the state.

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

30  research and production facility shall include:

31

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

  2  government to benefit from student and researcher involvement

  3  in applied research and development projects and other

  4  projects related to digital media.

  5         (b)  Promoting paths to future employment for students

  6  participating in the activities of the facility.

  7         (c)  Contributing to the development of a skilled

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

  9         (d)  Facilitating the transfer of research results to

10  commercial and government applications.

11         (e)  Integrating the efforts and activities of the

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

13  critical to the economic future of the state.

14         (f)  Assisting producers, suppliers, and distributors

15  to make the transition from well-established passive media

16  infrastructure to a highly interactive and immersive media

17  infrastructure.

18         (g)  Performing other functions or activities designed

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

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

21  Tourism, Trade, and Economic Development.

22         (4)  In carrying out its responsibilities under this

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

24  Development:

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

26  advanced digital-media research and production facilities will

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

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

29  strategic plan required by this paragraph.

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

31  advanced digital-media research and production facilities. In

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  1  identifying, approving, and executing such contracts, the

  2  office shall attempt to maximize the use and integration of

  3  existing facilities and programs in the state that are

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

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

  6  lease or refurbish existing facilities to create

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

  8  research laboratories that shall be shared by public and

  9  private educational institutions and industry partners.

10         (c)  Shall ensure that funds appropriated for the

11  program authorized in this section are expended in a manner

12  consistent with the priority needs for developing the

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

14  organizations listed in subsection (2).

15         (d)  Shall require any entity or organization receiving

16  state funding under this section to match such funding with

17  non-state sources.

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

19  research and production facility receiving state funds to

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

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

22  minimum, include provisions for the establishment of a tenant

23  association, with representation by each tenant using the

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

25  to support the operation and maintenance of the facility.

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

27  research and production facility receiving state funding to

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

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

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

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

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  1         (g)  Shall establish guidelines and criteria governing

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

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

  4  climate of the state required under section 14.2015, Florida

  5  Statutes, recommend to the Legislature policies designed to

  6  enhance the effectiveness of the program for joint-use

  7  advanced digital-media research and production facilities or

  8  policies designed to otherwise promote the development of the

  9  digital-media industry in the state.

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

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

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

13  expression, communication, and social interaction. The Office

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

15  and consultation with the organizations identified in

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

17  types of business activity to be included within the term

18  "digital media."

19         Section 20.  There is appropriated from the General

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

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

22  a program to facilitate the establishment and maintenance of

23  joint-use advanced digital-media research and production

24  facilities at strategic locations around the state as provided

25  in this act.

26         Section 21.  There is appropriated from the General

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

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

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

30  implementing the marketing campaign for high-technology

31

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  1  industry promotion as required under section 288.911, Florida

  2  Statutes.

  3         Section 22.  The unexpended balance of funds from

  4  section 38 of chapter 2000-164, Laws of Florida, authorized to

  5  reimburse eligible companies for sales tax payments made on

  6  equipment specifically associated with the creation of a

  7  network access point, is reappropriated for Fiscal Year

  8  2001-2002 to the Department of Revenue for reimbursement of

  9  such sales tax payments as provided in section 212.08(5),

10  Florida Statutes.

11         Section 23.  This act shall take effect July 1, 2001.

12

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  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                             SB 1750

  3

  4  The committee substitute differs from the bill in that the
    committee substitute:
  5
    --    Adds the presidents of the University of North Florida,
  6        Florida Gulf Coast University, and the University of
          West Florida to the membership of the Florida Research
  7        Consortium.

  8  --    Expands an existing sales tax exemption for building
          materials used in manufacturing or expanding clean rooms
  9        in semiconductor-manufacturing facilities -- to include
          such clean rooms in health-technology-manufacturing
10        facilities.

11  --    Reappropriates to the Department of Revenue for FY
          2001-2002 the unexpended balance of funds that the
12        Legislature appropriated in FY 2000-2001 for reimbursing
          eligible businesses under s. 212.08(5)(p), F.S., for
13        sales taxes paid on equipment purchased in connection
          with the creation of a network access point.
14
    --    Provides for the continuation of the Digital Media
15        Education Coordination Group that was created in 2000 to
          address enhancing the state's ability to meet the
16        workforce needs of the digital-media industry.

17  --    Prescribes that Enterprise Florida, Inc., shall solicit
          input, rather than accept direction, from certain
18        business organizations in developing a high-technology
          marketing campaign.
19
    --    Clarifies a reference to certain federal regulations
20        related to financial interests of researchers.

21

22

23

24

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30

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